10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X]        QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended October 3, 2015

or

[   ]      TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________ to _____________.

Commission File Number:   001-35930

PLY GEM HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

Delaware	3089	20-0645710
(State or other jurisdiction of incorporation or organization)	(Primary Standard Industrial Classification Code Number)	(I.R.S. Employer Identification No.)
	5020 Weston Parkway, Suite 400 Cary, North Carolina 27513

Registrant's telephone number, including area code: 919-677-3900

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  

Yes [X]                 No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes [X]   No [  ]

Indicate by check mark whether registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer   [   ]                                                                       Accelerated filer                    [X]   

Non-accelerated filer     [ ]                                                                       Smaller reporting company   [   ]

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [  ]   No [X]

As of November 9, 2015, there were 68,103,547 shares of common stock, $0.01 par value, outstanding.

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES

FORM 10-Q

QUARTERLY PERIOD ENDED October 3, 2015

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION

Item 1.	Condensed Consolidated Financial Statements
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) -
	Three months ended October 3, 2015 and September 27, 2014	2
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)-
	Nine months ended October 3, 2015 and September 27, 2014	3
	Condensed Consolidated Balance Sheets -
	October 3, 2015 and December 31, 2014	4
	Condensed Consolidated Statements of Cash Flows -
	Nine months ended October 3, 2015 and September 27, 2014	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition
	and Results of Operations	42
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	65
Item 4.	Controls and Procedures	67

PART II – OTHER INFORMATION

Item 6.	Exhibits	68
Signatures		69

PART I

Item 1.      FINANCIAL STATEMENTS

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

(Amounts in thousands, except shares and per share data)	For the three months ended
	October 3, 2015			September 27, 2014
Net sales	$	530,884		$	437,848
Cost of products sold	396,103			339,259
Gross profit	134,781			98,589
Operating expenses:
Selling, general and administrative expenses	66,358			51,355
Amortization of intangible assets	6,422			5,307
Total operating expenses	72,780			56,662
Operating earnings	62,001			41,927
Foreign currency loss	(1,069		)	(766		)
Interest expense	(18,840		)	(16,300		)
Interest income	21			18
Tax receivable agreement liability adjustment	1,712			(13,988		)
Income before provision (benefit) for income taxes	43,825			10,891
Provision (benefit) for income taxes	2,114			(10,514		)
Net income	$	41,711		$	21,405
Comprehensive income	$	36,764		$	17,282
Net income attributable to common shareholders per share:
Basic	$	0.61		$	0.32
Diluted	$	0.61		$	0.32
Weighted average shares outstanding:
Basic	68,044,674			67,844,546
Diluted	68,184,013			67,944,470

See accompanying notes to condensed consolidated financial statements.

2

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)

(UNAUDITED)

(Amounts in thousands, except shares and per share data)	For the nine months ended
	October 3, 2015			September 27, 2014
Net sales	$	1,409,266		$	1,116,524
Cost of products sold	1,089,461			890,717
Gross profit	319,805			225,807
Operating expenses:
Selling, general and administrative expenses	207,286			156,391
Amortization of intangible assets	18,904			15,841
Total operating expenses	226,190			172,232
Operating earnings	93,615			53,575
Foreign currency loss	(2,101		)	(517		)
Interest expense	(56,632		)	(52,065		)
Interest income	47			64
Tax receivable agreement liability adjustment	(13,467		)	(14,419		)
Loss on modification or extinguishment of debt	—			(21,364		)
Income (loss) before benefit for income taxes	21,462			(34,726		)
Benefit for income taxes	(1,762		)	(15,933		)
Net income (loss)	$	23,224		$	(18,793	)
Comprehensive income (loss)	$	12,078		$	(24,206	)
Net income (loss) per share attributable to common shareholders
Basic	$	0.34		$	(0.28	)
Diluted	$	0.34		$	(0.28	)
Weighted average shares outstanding:
Basic	67,971,236			67,807,801
Diluted	68,105,555			67,807,801

See accompanying notes to condensed consolidated financial statements.

3

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(Amounts in thousands, except share amounts)	October 3, 2015			December 31, 2014
ASSETS
Current Assets:
Cash and cash equivalents	$	43,278		$	33,162
Accounts receivable, less allowances of $4,744 and $4,164, respectively	267,995			187,679
Inventories:
Raw materials	75,667			76,467
Work in process	22,119			34,378
Finished goods	67,387			69,068
Total inventory	165,173			179,913
Prepaid expenses and other current assets	28,044			31,808
Deferred income taxes	8,542			7,680
Total current assets	513,032			440,242
Property and Equipment, at cost:
Land	8,164			7,967
Buildings and improvements	65,928			65,658
Machinery and equipment	374,182			368,719
Total property and equipment	448,274			442,344
Less accumulated depreciation	(292,257		)	(281,377		)
Total property and equipment, net	156,017			160,967
Other Assets:
Intangible assets, net	135,356			147,709
Goodwill	479,330			476,112
Other	27,405			29,545
Total other assets	642,091			653,366
	$	1,311,140		$	1,254,575
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable	$	93,378		$	84,164
Accrued expenses	150,743			147,325
Current portion of long-term debt	4,300			4,300
Total current liabilities	248,421			235,789
Deferred income taxes	20,305			20,806
Payable to related parties pursuant to tax receivable agreement	24,384			10,917
Other long-term liabilities	85,438			94,814
Long-term debt, less current portion	1,013,362			988,917
Commitments and contingencies
Stockholders' Deficit:
Preferred stock $0.01 par, 50,000,000 shares authorized, none issued and outstanding	—			—
Common stock $0.01 par, 250,000,000 shares authorized, 68,103,547 and 67,877,587 issued and outstanding, respectively	681			679
Additional paid-in-capital	748,965			745,140
Accumulated deficit	(799,288		)	(822,512		)
Accumulated other comprehensive loss	(31,128		)	(19,975		)
Total stockholders' deficit	(80,770		)	(96,668		)
	$	1,311,140		$	1,254,575

See accompanying notes to condensed consolidated financial statements.

4

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(Amounts in thousands)	For the nine months ended
	October 3, 2015			September 27, 2014
Cash flows from operating activities:
Net income (loss)	$	23,224		$	(18,793	)
Adjustments to reconcile net income (loss) to cash
provided by (used in) operating activities:
Depreciation and amortization expense	44,308			33,916
Fair-value premium on purchased inventory	54			38
Fair-value decrease of contingent acquisition liability	—			(264		)
Non-cash restructuring costs	805			3,012
Non-cash interest expense, net	9,988			11,606
Loss on foreign currency transactions	2,101			517
Non-cash litigation expense	(3,210		)	4,593
Loss on modification or extinguishment of debt	—			21,364
Stock based compensation	1,642			1,672
Deferred income taxes	(4,328		)	(17,195		)
Tax receivable agreement liability adjustment	13,467			14,419
Increase (reduction) in tax uncertainty, net of valuation allowance	(501		)	254
Other	(67		)	(224		)
Changes in operating assets and liabilities:
Accounts receivable, net	(76,850		)	(102,728		)
Inventories	15,340			(24,074		)
Prepaid expenses and other assets	6,925			2,607
Accounts payable	8,409			15,180
Accrued expenses	(2,776		)	(1,468		)
Cash payments on restructuring liabilities	(1,762		)	(4,412		)
Other	(1,004		)	4,571
Net cash provided by (used in) operating activities	35,765			(55,409		)
Cash flows from investing activities:
Acquisitions	(21,000		)	(130,856		)
Capital expenditures	(20,288		)	(14,524		)
Proceeds from sale of assets	106			744
Net cash used in investing activities	(41,182		)	(144,636		)
Cash flows from financing activities:
Proceeds from long-term debt	—			1,067,725
Net revolver borrowings	20,000			20,000
Payments on long-term debt	(3,225		)	(853,075		)
Payment of tender and early call premiums	—			(61,142		)
Proceeds from exercises of employee stock options	2,201			1,073
Debt issuance costs paid	—			(16,721		)
Net cash provided by financing activities	18,976			157,860
Impact of exchange rate movements on cash	(3,443		)	(834		)
Net increase (decrease) in cash and cash equivalents	10,116			(43,019		)
Cash and cash equivalents at the beginning of the period	33,162			69,801
Cash and cash equivalents at the end of the period	$	43,278		$	26,782

See accompanying notes to condensed consolidated financial statements.

5

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Ply Gem Holdings, Inc. and its subsidiaries (referred to herein as “Ply Gem Holdings”, “Ply Gem”, the “Company”, “we”, “us”, or “our”) have been prepared in accordance with U.S. generally accepted accounting principles as described in the consolidated financial statements and related notes included in our 2014 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 13, 2015.  These statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles and should be read in conjunction with our 2014 Annual Report on Form 10-K.  In management’s opinion, all normal and recurring adjustments considered necessary for a fair presentation have been included.  Operating results for the period from January 1, 2015 through October 3, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements of Ply Gem Holdings at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

The Company’s fiscal quarters are based on periods ending on the Saturday of the last week in the quarter.  Therefore, the financial results of certain fiscal quarters will not be comparable to the prior and subsequent fiscal quarters.  The accompanying financial statements include the Company’s condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended October 3, 2015 and September 27, 2014, the condensed consolidated statements of cash flows for the nine months endedOctober 3, 2015 and September 27, 2014, and the condensed consolidated balance sheets as of October 3, 2015 and December 31, 2014.

Ply Gem is a diversified manufacturer of residential and commercial building products, which are sold primarily in the United States and Canada, and include a wide variety of products for the residential and commercial construction, the do-it-yourself and the professional remodeling and renovation markets.  The demand for the Company’s products is seasonal, particularly in the Northeast and Midwest regions of the United States and Canada where inclement weather during the winter months usually reduces the level of building and remodeling activity in both the home repair and remodeling and new home construction sectors.  The Company’s sales are usually lower during the first and fourth quarters.

To a significant extent our performance is dependent upon the levels of home repair and remodeling and new home construction spending, all of which are affected by such factors as interest rates, inflation, consumer confidence, unemployment, and availability of consumer credit.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Ply Gem Holdings and its subsidiaries, all of which are wholly owned.  All intercompany accounts and transactions have been eliminated.

6

Accounting Policies and Use of Estimates

The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles involves estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expense during the reporting periods.  Certain of the Company’s accounting policies require the application of judgment in selecting the appropriate assumptions for calculating financial estimates.  By their nature, these judgments are subject to an inherent degree of uncertainty.  The Company periodically evaluates the judgments and estimates used in their critical accounting policies to ensure that such judgments and estimates are reasonable.  Such estimates include the allowance for doubtful accounts receivable, rebates, pensions, valuation of inventories, warranty reserves, insurance reserves, legal contingencies, assumptions used in the calculation of income taxes and the tax receivable agreement liability, projected cash flows used in the goodwill and intangible asset impairment tests, and environmental accruals and other contingencies.  These judgments are based on the Company’s historical experience, current trends and information available from other sources, and are based on management’s best estimates and judgments.  The Company adjusts such estimates and assumptions when facts and circumstances dictate.  Volatile equity markets, foreign currency, and litigation risk have combined to increase the uncertainty inherent in such estimates and assumptions.  If different conditions result from those assumptions used in the Company’s judgments, actual results could be materially different from the Company’s estimates.

Cash and Cash Equivalents

Cash equivalents consist of short-term highly liquid investments with original maturities of three months or less and which are readily convertible into cash.

Accounts Receivable

Accounts receivable-trade are recorded at their net realizable value.  The allowance for doubtful accounts was $4.7 million at October 3, 2015 and $4.2 million at December 31, 2014.  The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company estimates the allowance for doubtful accounts based on a variety of factors including the length of time receivables are past due, the financial health of its customers, unusual macroeconomic conditions and historical experience. If the financial condition of its customers deteriorates or other circumstances occur that result in an impairment of customers’ ability to make payments, the Company records additional allowances as needed. The Company writes off uncollectible trade accounts receivable against the allowance for doubtful accounts when collection efforts have been exhausted and/or any legal action taken by the Company has concluded.

Inventories

Inventories in the accompanying condensed consolidated balance sheets are valued at the lower of cost or market and are determined primarily by the first-in, first-out (FIFO) method.  The Company records provisions, as appropriate, to write-down obsolete and excess inventory to estimated net realizable value.  The process for evaluating obsolete and excess inventory often requires the Company to make subjective judgments and estimates concerning future sales levels, quantities and prices at which such inventory will be able to be sold in the normal course of business.  Accelerating the disposal process or incorrect estimates of future sales potential may cause actual results to differ from the estimates at the time such inventory is disposed or sold. As of October 3, 2015, the Company had inventory purchase commitments related to supply agreements for aluminum and glass of approximately $16.8 million.

Inventory reserves were approximately $9.1 million at October 3, 2015, decreasing during the nine months endedOctober 3, 2015 by $1.5 million compared to the December 31, 2014 reserve balance of approximately $10.6 million.

Property and Equipment

Property and equipment are presented at cost.  Depreciation of property and equipment are provided on a straight-line basis over estimated useful lives, which are generally as follows: 

Buildings and improvements	10-37 years
Machinery and equipment, including leases	3-15 years
Leasehold improvements	Term of lease or useful life, whichever is shorter

7

Expenditures for maintenance and repairs are expensed when incurred. Expenditures for renewals and betterments are capitalized.  When assets are sold, or otherwise disposed, the cost and related accumulated depreciation are eliminated and the resulting gain or loss is recognized in operations.  

Intangible Assets, Goodwill and Other Long-lived Assets

Long-lived assets

The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable.  The Company performs an undiscounted operating cash flow analysis to determine if impairment exists.  If an impairment is determined to exist, any related impairment loss is calculated based on the asset’s fair value and the discounted cash flows.

The Company tests for long-lived asset impairment at the following asset group levels: (i) the combined U.S. Siding, Fencing and Stone companies in the Siding, Fencing and Stone segment (“Siding”), (ii) the combined U.S. Windows companies in the Windows and Doors segment (“U.S. Windows”), (iii) the combined Simonton windows companies in the Windows and Doors segment, (iv) Gienow Canada Inc. ("Gienow Canada") (a combined Western Canadian company created by the January 2014 amalgamation of the Company's legacy Western Canadian business and the Gienow entity acquired in April 2013) in the Windows and Doors segment, and (v) Mitten in the Siding, Fencing and Stone segment. For purposes of recognition and measurement of an impairment loss, a long-lived asset or asset group should represent the lowest level for which an entity can separately identify cash flows that are largely independent of the cash flows of other assets and liabilities.  There were no indicators of impairment during the three and nine months ended October 3, 2015.

Goodwill and other intangible assets

The Company evaluates goodwill for impairment on an annual basis and whenever events or business conditions warrant.  All other intangible assets are amortized over their estimated useful lives and are assessed for impairment as necessary.  The Company assesses goodwill for impairment at the November month end each year and also at any other date when events or changes in circumstances indicate that the carrying value of these assets may exceed their fair value.  To evaluate goodwill for impairment, the Company estimates the fair value of reporting units considering such factors as discounted cash flows and valuation multiples for comparable publicly traded companies.  A significant reduction in projected sales and earnings, which would lead to a reduction in future cash flows, could indicate potential impairment.  There were no indicators of impairment during the three and nine months ended October 3, 2015 that would trigger an interim impairment test.  The Company will continue to evaluate goodwill during future periods and future declines in the residential housing and repair and remodeling markets could result in goodwill impairments.

Debt Issuance Costs

Debt issuance costs, composed of facility, agency, and certain legal fees associated with issuing new debt financing, are amortized over the contractual term of the related agreement using the effective interest method.  Net debt issuance costs totaled approximately $21.5 million and $23.8 million as of October 3, 2015 and December 31, 2014, respectively, and have been recorded in other long term assets in the accompanying condensed consolidated balance sheets. Amortization of debt issuance costs for the three months ended October 3, 2015 and September 27, 2014 was approximately $0.8 million and $0.8 million, respectively. Amortization of debt issuance costs for the nine months endedOctober 3, 2015 and September 27, 2014 was approximately $2.3 million and $2.8 million, respectively. Amortization of debt issuance costs is recorded in interest expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss).

Income Taxes

The Company utilizes the asset and liability method of accounting for income taxes which requires that deferred tax assets and liabilities be recorded to reflect the future tax consequences of temporary differences between the book and tax basis of various assets and liabilities.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect of changes in tax rates on deferred tax assets and liabilities is recognized as income or expense in the period in which the rate change occurs.  A valuation allowance is established to offset any deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

8

Estimates are required with respect to, among other things, the appropriate state income tax rates used in the various states that the Company and its subsidiaries are required to file, the potential utilization of operating and capital loss carry-forwards for both federal and state income tax purposes and valuation allowances required, if any, for tax assets that may not be realized in the future.  The Company establishes reserves when, despite our belief that our tax return positions are fully supportable, certain positions could be challenged, and the positions may not be fully sustained.  The Company along with its U.S. subsidiaries file a consolidated federal income tax return, separate state income tax returns, combined state returns, and unitary state returns. Gienow Canada and Mitten both file separate Canadian federal income tax returns and separate provincial returns. Simonton has joined the filing of the consolidated U.S. federal returns. Simonton has also joined the filings of certain combined and unitary state income tax returns as well as continued to file certain state returns on a separate company basis.

Tax receivable agreement ("TRA") liability

As a result of the Company’s full tax valuation allowance position, the Company’s methodology for calculating the TRA liability considers expectations regarding (i) current year taxable income only (due to the uncertainty of future taxable income associated with the Company’s cumulative loss position) and (ii) future income due to the expected reversals of deferred tax liabilities. During the three months ended October 3, 2015, the Company estimated its projected taxable income for the full year ending December 31, 2015 based on the Company’s 2015 estimates. However, the Company’s methodology to estimate the TRA liability excludes forecasts for fiscal years subsequent to 2015 because such future forecasts and projections cannot be relied upon based on the negative evidence from the Company’s three year cumulative loss position. For fiscal year 2015, the Company estimated to be in a taxable income position; however, this taxable income estimate was not sufficient to outweigh the negative evidence or alleviate the Company’s three year cumulative loss position. In addition to projecting the Company’s current year taxable income estimate, the Company considered the reversals of deferred tax assets and deferred tax liabilities.

Environmental

The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Environmental remediation obligation accruals are adjusted as further information develops or circumstances change.  Costs of future expenditures for environmental remediation obligations are not discounted to their present value.  Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable.

Commitments and Contingencies

The Company accrues for all direct costs associated with the estimated resolution of contingencies at the earliest date at which it is deemed probable that a liability has been incurred and the amount of such liability can be reasonably estimated.  Costs accrued have been estimated based upon an analysis of potential results, assuming a combination of litigation and settlement strategies and outcomes. Insurance recoveries are recorded as assets when their receipt is deemed probable.

Foreign Currency

Gienow Canada and Mitten, the Company’s Canadian subsidiaries, utilize the Canadian dollar as their functional currency.  For reporting purposes, the Company translates the assets and liabilities of its foreign entities at the exchange rates in effect at period-end.  Net sales and expenses are translated using average exchange rates in effect during the period.  Gains and losses from foreign currency translation are credited or charged to accumulated other comprehensive income or loss in the accompanying condensed consolidated balance sheets.

The Company recorded a loss from foreign currency transactions of approximately $1.1 million for the three months ended October 3, 2015 and a loss of approximately $0.8 million for the three months ended September 27, 2014. The Company recorded a loss from foreign currency transactions of approximately $2.1 million for the nine months ended October 3, 2015 and a loss of approximately $0.5 million for the nine months ended September 27, 2014. During the nine months ended October 3, 2015 and September 27, 2014, accumulated other comprehensive loss included a currency translation adjustment of approximately $11.3 million and $5.4 million, respectively.

Derivative Financial Instruments

9

During the year ended December 31, 2014, the Company entered into a foreign currency forward contract agreement to hedge approximately $49.7 million of its 2015 non-functional currency inventory purchases to protect the Company from variability in cash flows attributable to changes in the U.S. dollar relative to the Canadian dollar.

The Company has designated this forward contract as a cash flow hedge. As a cash flow hedge, unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The forward contract agreement is highly correlated to the changes in foreign currency rates to which the Company is exposed. Unrealized gains and losses on this agreement are designated as effective or ineffective. The effective portion of such gains or losses is recorded as a component of accumulated other comprehensive income or loss, while the ineffective portion of such gains or losses is recorded as a component of cost of goods sold. Future realized gains and losses in connection with each inventory purchase will be reclassified from accumulated other comprehensive income or loss to cost of goods sold.

The changes in fair values of derivatives that have been designated and qualify as cash flow hedges are recorded in accumulated other comprehensive income or loss and are reclassified into cost of goods sold in the same period the hedged item affects earnings. Due to the high degree of effectiveness between the hedging instrument and the underlying exposures being hedged, fluctuations in the value of the derivative instrument are generally offset by changes in the fair value or cash flows of the underlying exposures being hedged. The changes in the fair value of derivatives that do not qualify as effective are immediately recognized in earnings.

The gains and losses on the derivative contract that are reclassified from accumulated other comprehensive income or loss to current period earnings are included in the line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings. As of October 3, 2015, approximately $1.4 million of the deferred net asset on derivative instruments included in accumulated other comprehensive loss is expected to be reclassified against cost of goods sold during the next three months. This expectation is based on the expected timing of the occurrence of the hedged forecasted transactions. During the three and nine months ended October 3, 2015, the Company recognized $1.8 million and $3.9 million within earnings as a reduction of cost of goods sold in the condensed consolidated statement of operations. During the three and nine months ended September 27, 2014, the Company recognized $0.2 million and $0.4 million within earnings as an increase to cost of goods sold in the condensed consolidated statement of operations.

The fair value of the foreign currency forward contract agreement is estimated using industry standard valuation models using market-based observable inputs, including spot rates, forward points, interest rates and volatility inputs (Level 2). A summary of the recorded asset included in the accompanying condensed consolidated balance sheets is as follows:

(Amounts in thousands)
	October 3, 2015		December 31, 2014
Foreign currency hedge (included in other current assets)	$	1,439	$	1,294

Fair Value Measurement

The accounting standard for fair value discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flows), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

• Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

• Level 3: Inputs that reflect the reporting entity’s own assumptions.

The hierarchy requires the use of observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.  The fair value of the long-term debt instruments was determined by utilizing available market information.  The carrying value of the Company’s other assets and liabilities approximates their fair value. 

10

The Company’s population of recurring financial assets and liabilities subject to fair value measurements and the necessary disclosures are as follows:

					Quoted Prices in Active Markets		Significant Other		Significant
(Amounts in thousands)			Fair		for Identical		Observable		Unobservable
	Carrying		Value		Assets		Inputs		Inputs
Description	Value		Total		(Level 1)		(Level 2)		(Level 3)
Liabilities:
Senior Notes-6.50%	$	650,000	$	601,813	$	601,813	$	—	$	—
Term Loan Facility	423,550		417,197		—		417,197		—
As of October 3, 2015:	$	1,073,550	$	1,019,010	$	601,813	$	417,197	$	—
Liabilities:
Senior Notes-6.50%	$	650,000	$	617,500	$	617,500	$	—	$	—
Term Loan Facility	426,775		404,369		—		404,369		—
As of December 31, 2014	$	1,076,775	$	1,021,869	$	617,500	$	404,369	$	—

Earnings (Loss) Per Common Share

Basic earnings (loss) per share ("EPS") is computed based upon weighted-average shares outstanding during the period. Dilutive earnings per share is computed consistently with the basic computation while giving effect to all dilutive potential common shares and common share equivalents that were outstanding during the period. Ply Gem Holdings uses the treasury stock method to reflect the potential dilutive effect of unvested stock awards and unexercised options.

The Company was in a net loss position for the nine months ended September 27, 2014 and therefore the impact of stock options and unvested restricted stock were excluded from the computation of diluted earnings (loss) per share for that specific period, as the inclusion of such amounts would be anti-dilutive.

The computation of the dilutive effect of other potential common shares included options and unvested restricted stock representing approximately 0.1 million shares of common stock for the three months ended October 3, 2015 and approximately 0.1 million shares of common stock for the nine months endedOctober 3, 2015. The computation of the dilutive effect of other potential common shares included options and unvested restricted stock representing approximately 0.1 million shares of common stock for the three months ended September 27, 2014 and excluded approximately 0.1 million shares of common stock for the nine months endedSeptember 27, 2014, respectively.

New Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2014, which means the first quarter of Ply Gem's fiscal year 2015, with early adoption permitted. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The adoption of this new guidance did not affect the Company's consolidated financial position, results of operations or cash flows.

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In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which completes the joint effort by the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and improve financial reporting by creating common revenue recognition guidance for U.S. generally accepted accounting principles ("GAAP") and International Financial Reporting Standards ("IFRS"). ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and GAAP. The core principle of this update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB finalized a one-year deferral of the effective date of the new revenue recognition standard. The new standard will become effective for Ply Gem beginning with the first quarter of 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. The method of adoption has not been determined yet by the Company. The Company is currently reviewing the revised guidance and assessing the potential impact on the consolidated financial statements.

In January 2015, the FASB issued ASU No. 2015-01, Income Statement-Extraordinary and Unusual Items, which eliminates from GAAP the concept of extraordinary items and the requirement that an entity separately classify, present and disclose extraordinary events and transactions. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016. The guidance can be applied retrospectively or prospectively. This new guidance is not expected to affect the Company's consolidated financial position, results of operations or cash flows.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation, which adjusts the determination of whether an entity is a variable interest entity ("VIE") through various assessment criteria including fees paid to the decision maker within the entity or service provider, related party tests regarding indirect interests, among other others. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016, with early adoption permitted. The guidance can be applied with a modified retrospective approach with a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption or retrospectively. This new guidance is not expected to affect the Company's consolidated financial position, results of operations or cash flows.    

In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Additionally, in August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest, which specifies that debt issuance costs related to line-of-credit arrangements can still be presented as an asset and amortized ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016, with early adoption permitted. The guidance applies retrospectively to all debt issuance costs. This new guidance is expected to change classification in the Company's consolidated financial position with no impact on the results of operations or cash flows.

In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-use Software, which provides guidance on the accounting for fees paid by a customer in a cloud computing arrangement as it relates to whether the arrangement includes the sale or license of software. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016, with early adoption permitted. The guidance can be applied retrospectively or prospectively. This new guidance is expected to change classification in the Company's consolidated financial position with no impact on the results of operations or cash flows.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which requires measurement of in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2016, which means the first quarter of Ply Gem's fiscal year 2017. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact the adoption of this standard will have on its consolidated financial statements.

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In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments ("ASU No. 2015-16"),which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. The Company is still evaluating the impact that its adoption of ASU 2015-16 will have on its consolidated financial position or results of operations.

2.   ACQUISITIONS

Simonton

On September 19, 2014, Ply Gem completed an acquisition for cash consideration of approximately $130.0 million to acquire the capital stock of Fortune Brands Windows Inc., and its direct and indirect wholly owned subsidiaries Simonton Building Products LLC, Simonton Industries, Inc., Simonton Windows, Inc., and SimEx, Inc. Fortune Brand Windows Inc.'s name has subsequently been changed to Simonton Windows & Doors, Inc. (“Simonton”). Simonton is a premier repair and remodeling window company with leading brand recognition within this market providing the Company with long-term value. Simonton manufactures top quality vinyl windows and doors and provides industry-leading customization options, delivery times, and customer service. Simonton has manufacturing plant locations in California, Illinois, and West Virginia with administrative offices in Ohio. The Simonton acquisition balances the Company's end window market mix by moving the Company's market exposure to approximately 65% and 35% for the new construction and repair and remodeling markets, respectively, as compared to the approximate 80% and 20% legacy split for the Company’s window business. By incorporating the Company’s siding net sales, the Company’s market exposure is approximately 53% and 47% for the new construction and repair and remodeling markets, respectively. Simonton strategically fits into the Company’s existing footprint and broadens its service offering to existing and new customers within the building product industry. The Company accounted for the transaction as an acquisition in accordance with the provisions of Accounting Standards Codification 805, Business Combinations, which results in a new valuation for the assets and liabilities of Simonton based upon fair values as of the acquisition date.

During the three and nine months ended October 3, 2015, purchase price adjustments with a net increase of $2.0 million and a net decrease of $0.5 million, respectively, to goodwill were recorded in connection with warranties and other liabilities. During the three months ended October 3, 2015, the Company increased the warranty liability $0.2 million, other accrued liabilities $1.7 million and decreased other assets $0.1 million based on information regarding circumstances that existed prior to the acquisition in 2014. The Company finalized the acquisition accounting adjustments during the third quarter of 2015.

The Company determined the fair value of the tangible and intangible assets and the liabilities acquired, and recorded goodwill based on the excess of fair value of the acquisition consideration over such fair value, as follows:

(Amounts in thousands)
Cash	$	(856	)
Accounts receivable	37,134
Inventories	17,742
Prepaid expenses and other current assets	2,133
Property and equipment	53,655
Intangible assets	62,170
Goodwill	58,681
Other assets	426
Accounts payable and accrued expenses	(49,916		)
Deferred income taxes	(10,462		)
Other liabilities	(40,707		)
	$	130,000

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The $58.7 million of goodwill is allocated to the Windows and Doors segment and none of the goodwill is expected to be deductible for tax purposes. The goodwill is attributable to the workforce of the acquired business and the synergies expected to be realized from the acquisition.

Canyon Stone

On May 29, 2015, Ply Gem completed an acquisition for cash consideration of approximately $21.0 million to acquire substantially all of the assets of Canyon Stone Inc. ("Canyon Stone"), a manufacturer and distributor of stone veneer and accessories in the United States. Canyon Stone has manufacturing facilities in Olathe, Kansas and Youngsville, North Carolina. The purchase agreement also includes contingent consideration in the form of potential earn-out payments of up to $1.0 million based on Canyon Stone's earnings for fiscal years 2015 through 2017. This acquisition expanded the Company's stone veneer manufacturing footprint across the United States as it compliments the existing Ply Gem Stone manufacturing facility in Middleburg, Pennsylvania. The Company accounted for the transaction as an acquisition in accordance with the provisions of Accounting Standards Codification 805, Business Combinations, which results in a new valuation for the assets and liabilities of Canyon Stone based upon fair values as of the acquisition date.

Since the acquisition was completed on May 29, 2015, the final acquisition accounting allocation remains subject to further adjustments. The specific accounts subject to ongoing purchase accounting adjustments include accounts receivable, inventories, prepaid expenses and other current assets, property and equipment, goodwill, intangibles, accounts payable, accrued expenses, and other liabilities. Therefore, the measurement date remains open as of October 3, 2015, and the preliminary acquisition accounting allocation detailed below is subject to adjustment. The Company anticipates completing these acquisition accounting adjustments during 2015.

The Company determined the fair value of the tangible and intangible assets and the liabilities acquired, and recorded goodwill based on the excess of fair value of the acquisition consideration over such fair values, as follows:

(Amounts in thousands)
Accounts receivable	$	3,559
Inventories	712
Prepaid expenses and other current assets	41
Property and equipment	2,019
Intangible assets	9,300
Goodwill	7,768
Accounts payable, accrued expenses and other long-term liabilities	(2,399		)
	$	21,000

The $7.8 million of goodwill was allocated to the Siding, Fencing and Stone segment and the goodwill is expected to be deductible for tax purposes. The Company has recognized a liability of approximately $0.7 million as the estimated acquisition date fair value of the earn-out. This amount is included within other long-term liabilities in the condensed consolidated balance sheet. Any change in the fair value of the contingent consideration subsequent to the acquisition date will be recognized in earnings in the period of change.     

For the three and nine months ended October 3, 2015, Canyon Stone contributed net sales of approximately $7.9 million and $10.8 million, respectively, which has been included within the Company’s condensed consolidated statement of operations and comprehensive income (loss). If the Canyon Stone acquisition would have occurred at the beginning of 2014, the Company’s consolidated net sales would have been $1,420.5 million and $1,134.3 million for the nine months ended October 3, 2015 and September 27, 2014, respectively, with net income of $23.6 million and a net loss of $16.4 million for the nine months ended October 3, 2015 and September 27, 2014, respectively.

During the nine months ended October 3, 2015, the Company incurred $0.3 million of acquisition-related costs for Canyon Stone. These expenses are included in selling, general, and administrative expense in the Company’s condensed consolidated statement of operations and comprehensive income (loss) within the Siding, Fencing and Stone segment.

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3.   GOODWILL

The Company records the excess of the fair value of the acquisition consideration over the net tangible and intangible assets of acquired companies as goodwill.  The Company performs an annual test for goodwill impairment at the November month end each year and also at any other date when events or changes in circumstances indicate that the carrying value of these assets may exceed their fair value.  The Company has defined its reporting units and performs the impairment testing of goodwill at the operating segment level.  The Company has two reporting units: (1) Siding, Fencing and Stone and (2) Windows and Doors.  Separate valuations are performed for each of these reporting units in order to test for impairment.      

The Company uses the two-step method to determine goodwill impairment.  If the carrying amount of a reporting unit exceeds its fair value (“Step One”), the Company measures the possible goodwill impairment based upon a hypothetical allocation of the fair value estimate of the reporting unit to all of the underlying assets and liabilities of the reporting unit, including previously unrecognized intangible assets (“Step Two”).  The excess of the reporting unit’s fair value over the amounts assigned to its assets and liabilities is the implied fair value of goodwill.  An impairment loss is recognized to the extent that a reporting unit’s recorded goodwill exceeds the implied fair value of goodwill. The Company has elected not to utilize the qualitative Step Zero impairment assessment. There was no goodwill impairment for the year ended December 31, 2014 and no impairment indicators which would trigger an interim impairment test during the three and nine months ended October 3, 2015. However, the Company will continue to evaluate goodwill during future periods and future declines in the residential housing and repair and remodeling markets or the Company's market capitalization could result in goodwill impairments.  

To determine the fair value of its reporting units, the Company equally considers both the income and market valuation methodologies.  The income valuation methodology uses the fair value of the cash flows that the reporting unit can be expected to generate in the future. This method requires management to project revenues, operating expenses, working capital investment, capital spending and cash flows for the reporting unit over a multi-year period as well as determine the weighted average cost of capital to be used as the discount rate.  The Company also utilizes the market valuation method to estimate the fair value of the reporting units by utilizing comparable public company multiples.  These comparable public company multiples are then applied to the reporting unit’s financial performance.  The market approach is more volatile as an indicator of fair value as compared to the income approach as internal forecasts and projections have historically been more stable.  Since each approach has its merits, the Company equally weights the approaches to balance the internal and external factors affecting the Company’s fair value.

The Company’s fair value estimates of its reporting units and goodwill are sensitive to a number of assumptions including discount rates, cash flow projections, operating margins, and comparable market multiples.  In order to accurately forecast future cash flows, the Company estimates single family housing starts and the repair and remodeling market's growth rates.  However, there is no assurance that: (1) valuation multiples will not decline, (2) discount rates will not increase, or (3) the earnings, book values or projected earnings and cash flows of the Company's reporting units will not decline. 

The reporting unit goodwill balances were as follows as of October 3, 2015 and December 31, 2014:

(Amounts in thousands)
	October 3, 2015		December 31, 2014
Siding, Fencing and Stone	$	349,077	$	344,048
Windows and Doors	130,253		132,064
	$	479,330	$	476,112

The changes in the goodwill balances from December 31, 2014 to October 3, 2015 relate to currency translation, the Canyon Stone acquisition and Simonton purchase accounting adjustments. A goodwill rollforward for 2015 is included in the table below:

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	Windows and			Siding, Fencing
(Amounts in thousands)	Doors			and Stone
Balance as of December 31, 2014
Goodwill	$	459,837		$	466,275
Accumulated impairment losses	(327,773		)	(122,227		)
	$	132,064		$	344,048
Currency translation adjustments	(1,301		)	(2,739		)
Simonton purchase accounting adjustments	(510		)	—
Canyon Stone acquisition	—			7,768
Balance as of October 3, 2015
Goodwill	458,026			471,304
Accumulated impairment losses	(327,773		)	(122,227		)
	$	130,253		$	349,077

4.   INTANGIBLE ASSETS

The table that follows presents the major components of intangible assets as of October 3, 2015 and December 31, 2014:

(Amounts in thousands)	Average Amortization Period			Accumulated			Net Carrying
	(in Years)	Cost		Amortization			Value
As of October 3, 2015:
Patents	14	$	12,770	$	(10,901	)	$	1,869
Trademarks/Tradenames	11	118,360		(75,324		)	43,036
Customer relationships	12	225,215		(135,970		)	89,245
Other	5	5,178		(3,972		)	1,206
Total intangible assets	12	$	361,523	$	(226,167	)	$	135,356
As of December 31, 2014:
Patents	14	$	12,770	$	(10,193	)	$	2,577
Trademarks/Tradenames	11	117,660		(70,797		)	46,863
Customer relationships	13	220,163		(123,299		)	96,864
Other	5	4,379		(2,974		)	1,405
Total intangible assets	12	$	354,972	$	(207,263	)	$	147,709

Estimated amortization expense for the fiscal years 2015 through 2019 is shown in the following table:

	Amortization
(Amounts in thousands)	expense
2015 (remainder of year)	$	6,915
2016	25,645
2017	21,711
2018	20,925
2019	15,484

5.  COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss), net of tax is comprised of the following:

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(Amounts in thousands)	For the three months ended						For the nine months ended
	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Net income (loss)	$	41,711		$	21,405		$	23,224		$	(18,793	)
Foreign currency translation adjustment	(4,121		)	(5,009		)	(11,291		)	(5,366		)
Unrealized gain (loss) on derivative instruments	(826		)	886			145			(47		)
Comprehensive income (loss)	$	36,764		$	17,282		$	12,078		$	(24,206	)

6.   LONG-TERM DEBT

Long-term debt in the accompanying condensed consolidated balance sheets at October 3, 2015 and December 31, 2014 consists of the following:

(Amounts in thousands)
	October 3, 2015			December 31, 2014
Senior secured asset based revolving credit facility	$	20,000		$	—
Term Loan due 2021, net of unamortized early tender premium
and discount of $29,174 and $32,518, respectively	394,376			394,257
6.50% Senior notes due 2022, net of unamortized early tender premium
and discount of $46,714 and $51,040, respectively	603,286			598,960
	$	1,017,662		$	993,217
Less current portion of long-term debt	(4,300		)	(4,300		)
	$	1,013,362		$	988,917

2014 Debt Transactions

On January 30, 2014, Ply Gem Industries completed an offering of $500.0 million aggregate principal amount of 6.50% Senior Notes due 2022 (the “6.50% Senior Notes”) and also entered into a $430.0 million senior secured term loan facility due 2021 (the “Term Loan Facility”). The approximate $927.9 million of net proceeds from the issuance of the 6.50% Senior Notes and the borrowings under the Term Loan Facility were used by Ply Gem Industries to purchase all of its 8.25% Senior Secured Notes due 2018 (the "8.25% Senior Secured Notes") and 9.375% Senior Notes due 2017 (the "9.375% Senior Notes") tendered in the tender offers described below, to satisfy and discharge the remaining obligations under the indentures governing the 8.25% Senior Secured Notes and 9.375% Senior Notes and to pay related fees and expenses.

On January 30, 2014, Ply Gem Industries purchased approximately $705.9 million of the outstanding 8.25% Senior Secured Notes in a tender offer at a price of $1,067.50 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. On January 30, 2014, Ply Gem Industries also purchased approximately $94.7 million of the outstanding 9.375% Senior Notes in a tender offer at a price of $1,108.36 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. As a result, Ply Gem Industries paid aggregate consideration of approximately $780.2 million for the tendered 8.25% Senior Secured Notes, including a tender premium of approximately $47.6 million, and paid aggregate consideration of approximately $107.6 million for the tendered 9.375% Senior Notes, including a tender premium of approximately $10.3 million.

On March 1, 2014, pursuant to the terms of the indenture governing the 8.25% Senior Secured Notes, Ply Gem Industries redeemed the remaining approximate $50.1 million principal amount of the outstanding 8.25% Senior Secured Notes at a redemption price equal to 106.188% of the principal amount thereof, plus accrued and unpaid interest. On February 16, 2014, pursuant to the terms of the indenture governing the 9.375% Senior Notes, Ply Gem Industries redeemed the remaining approximate $1.3 million principal amount of the outstanding 9.375% Senior Notes at a redemption price equal to 100% of the principal amount plus the “make-whole” premium required under the indenture governing the 9.375% Senior Notes (which equated to 110.179% of the principal amount thereof), plus accrued and unpaid interest. As of March 1, 2014, there were no longer outstanding any 8.25% Senior Secured Notes. As of February 16, 2014, there were no longer outstanding any 9.375% Senior Notes.

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On September 19, 2014, Ply Gem Industries issued an additional $150.0 million aggregate principal amount of its 6.50% Senior Notes (“Senior Tack-on Notes”).  The net proceeds from the transaction were approximately $138.0 million after deducting $10.1 million for the debt discount and $1.9 million in transaction costs. The proceeds from the issuance of the Senior Tack-on Notes and approximately $3.1 million of cash on hand were used by Ply Gem Industries to fund Ply Gem Industries’ purchase of all the issued and outstanding shares of common stock of Simonton, to pay fees and expenses related to the offering of the Senior Tack-on Notes and the Simonton acquisition and for general corporate purposes, including the repayment of approximately $10.0 million of indebtedness under the Company’s senior secured asset-backed revolving credit facility (the "ABL Facility"). The additional $150.0 million of 6.50% Senior Tack-on Notes have the same terms and covenants as the original $500.0 million of 6.50% Senior Notes due 2022. The 6.50% Senior Notes originally issued in January 2014 and the Senior Tack-on Notes issued in September 2014 (collectively, the "6.50% Senior Notes") will mature on February 1, 2022 and bear interest at the rate of 6.50%.

In November 2014, the Company exercised a portion of the accordion feature under the ABL Facility for $50.0 million, or 50% of the eligible accordion, increasing the ABL Facility from $250.0 million to $300.0 million to account for the additional borrowing base acquired from Simonton.

6.50% Senior Notes due 2022

On January 30, 2014, Ply Gem Industries issued $500.0 million of 6.50% Senior Notes at par. On September 19, 2014, Ply Gem Industries issued an additional $150.0 million of 6.50% Senior Notes at a discount of approximately $10.1 million. Interest accrues at 6.50% per annum and is paid semi-annually on February 1 and August 1 of each year. The 6.50% Senior Notes will mature on February 1, 2022.

Prior to February 1, 2017, Ply Gem Industries may redeem up to 40% of aggregate principal amount of the 6.50% Senior Notes with the net cash proceeds from certain equity offerings at a redemption price equal to 106.50% of the aggregate principal amount of the 6.50% Senior Notes to be redeemed, plus accrued and unpaid interest, if any, provided that at least 50% of the aggregate principal amount of the 6.50% Senior Notes remains outstanding after the redemption. Prior to February 1, 2017, Ply Gem Industries may redeem the 6.50% Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a “make-whole” premium plus accrued and unpaid interest, if any. At any time on or after February 1, 2017, Ply Gem Industries may redeem the 6.50% Senior Notes, in whole or in part, at declining redemption prices set forth in the indenture governing the 6.50% Senior Notes plus, in each case, accrued and unpaid interest, if any, to the redemption date. The effective interest rate for the 6.50% Senior Notes is 8.48% after considering each of the different interest expense components of this instrument, including the coupon payment and the deferred debt issuance costs.

The 6.50% Senior Notes are fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis by Ply Gem Holdings and all of the wholly-owned domestic subsidiaries of Ply Gem Industries (the “Guarantors”).  The indenture governing the 6.50% Senior Notes contains certain covenants that limit the ability of Ply Gem Industries and its restricted subsidiaries to incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem their stock, make loans and investments, sell assets, incur certain liens, enter into agreements restricting their ability to pay dividends, enter into transactions with affiliates, and consolidate, merge or sell assets.  In particular, Ply Gem Industries and its restricted subsidiaries may not incur additional debt (other than permitted debt (as defined in the indenture) in limited circumstances) unless, after giving effect to such incurrence, the consolidated interest coverage ratio of Ply Gem Industries would be at least 2.00 to 1.00.  

In the absence of satisfying the consolidated interest coverage ratio test, Ply Gem Industries and its restricted subsidiaries may only incur additional debt under certain circumstances, including, but not limited to, debt under credit facilities (as defined in the indenture) (x) in an amount not to exceed the greater of (a) $350.0 million and (b) the borrowing base (as defined in the indenture) and (y) in an amount not to exceed the greater of (A) $575.0 million and (B) the aggregate amount of indebtedness (as defined in the indenture) that that would cause the consolidated secured debt ratio (as defined in the indenture) to be equal to 4.00 to 1.00; purchase money indebtedness in an aggregate amount not to exceed the greater of (x) $35.0 million and (y) 10% of consolidated net tangible assets (as defined in the indenture) at any one time outstanding; debt of foreign subsidiaries in an aggregate amount not to exceed the greater of (x) $60.0 million and (y) 15% of consolidated net tangible assets (as defined in the indenture) at any one time outstanding; debt pursuant to a general basket in an aggregate amount at any one time outstanding not to exceed the greater of (x) $75.0 million and (y) 20% of consolidated net tangible assets; and the refinancing of debt under certain circumstances.

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On September 5, 2014, Ply Gem Industries completed an exchange offer with respect to the 6.50% Senior Notes issued in January 2014 to exchange $500.0 million 6.50% Senior Notes registered under the Securities Act for $500.0 million of the issued and outstanding 6.50% Senior Notes. Upon completion of the exchange offer, all $500.0 million of issued and outstanding 6.50% Senior Notes were registered under the Securities Act.  On January 23, 2015, Ply Gem Industries completed an exchange offer with respect to the Senior Tack-on Notes issued in September 2014 to exchange $150.0 million Senior Tack-on Notes registered under the Securities Act for $150.0 million of the issued and outstanding Senior Tack-on Notes. Upon completion of the exchange offer, all $150.0 million of issued and outstanding Senior Tack-on Notes were registered under the Securities Act. 

Term Loan Facility due 2021

On January 30, 2014, Ply Gem Industries entered into a credit agreement governing the terms of its new $430.0 million Term Loan Facility. Ply Gem Industries borrowed $430.0 million under the Term Loan Facility on January 30, 2014, with an original discount of approximately $2.2 million, yielding proceeds of approximately $427.9 million. The Term Loan Facility will mature on January 30, 2021. The Term Loan Facility requires scheduled quarterly payments in an aggregate annual amount equal to 1.00% of the original aggregate principal amount of the Term Loan Facility with the balance due at maturity. Interest on outstanding borrowings under the Term Loan Facility are paid quarterly.

Borrowings under the Term Loan Facility bear interest at a rate equal to, at Ply Gem Industries’ option, either (a) a base rate determined by reference to the highest of (i) the prime rate of the administrative agent under the credit agreement, (ii) the federal funds rate plus 0.50% and (iii) the adjusted LIBO rate for a one-month interest period plus 1.00% or (b) a LIBO rate determined by reference to the cost of funds for eurocurrency deposits in dollars for the interest period relevant to such borrowing, adjusted for certain additional costs, subject to a 1.00% floor, plus, in each case, an applicable margin of 3.00% for any eurocurrency loan and 2.00% for any alternate base rate loan. As of October 3, 2015, the Company's interest rate on the Term Loan Facility was 4.00%. The effective interest rate for the Term Loan is 7.00% after considering each of the different interest expense components of this instrument, including the coupon payment, the deferred debt issuance costs and the original issue discount.

The Term Loan Facility allows Ply Gem Industries to request one or more incremental term loan facilities in an aggregate amount not to exceed the greater of (x) $140.0 million and (y) an amount such that Ply Gem Industries’ consolidated senior secured debt ratio (as defined in the credit agreement), on a pro forma basis, does not exceed 3.75 to 1.00, in each case, subject to certain conditions and receipt of commitments by existing or additional financial institutions or institutional lenders. Ply Gem Industries may voluntarily repay outstanding loans under the Term Loan Facility at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR loans.

The Term Loan Facility requires Ply Gem Industries to prepay outstanding term loans, subject to certain exceptions, with: (i) 50% (which percentage will be reduced to 25% if our consolidated senior secured debt ratio is equal or less than 2.50 to 1.00 but greater than 2.00 to 1.00 and to 0% if our consolidated senior secured debt ratio is equal to or less than 2.00 to 1.00) of our annual excess cash flow (as defined in the credit agreement), to the extent such excess cash flow exceeds $15.0 million, commencing with the fiscal year ending December 31, 2015; (ii) 100% of the net cash proceeds of certain non-ordinary course asset sales or certain insurance and condemnation proceeds, in each case subject to certain exceptions and reinvestment rights; and (iii) 100% of the net cash proceeds of certain issuances of debt, other than proceeds from debt permitted under the Term Loan Facility.

The Term Loan Facility is secured on a first-priority lien basis by the stock of Ply Gem Industries and by substantially all of the assets (other than the assets securing the obligations under the ABL Facility, which primarily consist of accounts receivable, inventory, cash, deposit accounts, securities accounts, chattel paper, contract rights, instruments, documents related thereto and proceeds of the foregoing) of Ply Gem Industries and the Guarantors that are subsidiaries of Ply Gem Industries and on a second-priority lien basis by the assets that secure the ABL Facility.

The Term Loan Facility includes negative covenants, subject to certain exceptions, that are substantially the same as the negative covenants in the 6.50% Senior Notes and also does not contain any restrictive financial covenants. The Term Loan Facility also restricts the ability of Ply Gem Industries’ subsidiaries to enter into agreements restricting their ability to grant liens to secure the Term Loan Facility and contains a restriction on changes in fiscal year.

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8.25% Senior Secured Notes due 2018

On February 11, 2011, Ply Gem Industries issued $800.0 million of 8.25% Senior Secured Notes at par.  Ply Gem Industries used the proceeds to purchase approximately $724.6 million principal amount of its outstanding 11.75% Senior Secured Notes in a tender offer, to redeem the remaining approximate $0.4 million principal amount of outstanding 11.75% Senior Secured Notes, and to pay related fees and expenses.  A portion of the early tender premiums and the original unamortized discount on the 11.75% Senior Secured Notes was recorded as a discount on the $800.0 million of 8.25% Senior Secured Notes given that the 2011 transaction was predominately accounted for as a loan modification.  On February 15, 2012, Ply Gem Industries issued an additional $40.0 million principal amount of its 8.25% Senior Secured Notes. The 8.25% Senior Secured Notes would have matured on February 15, 2018 and bore interest at the rate of 8.25% per annum.   Interest was paid semi-annually on February 15 and August 15 of each year. The 8.25% Senior Secured Notes were fully and unconditionally and jointly and severally guaranteed on a senior secured basis by the Guarantors. The 8.25% Senior Secured Notes and the related guarantees were secured on a first-priority lien basis by substantially all of the assets (other than the assets securing our obligations under the ABL Facility, which consist of accounts receivable, inventory, cash, deposit accounts, securities accounts, chattel paper and proceeds of the foregoing and certain assets such as contract rights, instruments and documents related thereto) of Ply Gem Industries and the Guarantors and on a second-priority lien basis by the assets that secure the ABL Facility.

On January 30, 2014, Ply Gem Industries purchased approximately $705.9 million of its outstanding 8.25% Senior Secured Notes in a tender offer at a price of $1,067.50 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. On January 30, 2014, Ply Gem Industries irrevocably deposited with the trustee for the 8.25% Senior Secured Notes an amount sufficient to satisfy and discharge its obligations under the 8.25% Senior Secured Notes and the indenture. On March 1, 2014, Ply Gem Industries redeemed the remaining outstanding principal amount of the 8.25% Senior Secured Notes at a redemption price equal to 106.188% of the principal amount thereof, plus accrued and unpaid interest to the redemption date. Following the redemption, there were no longer any 8.25% Senior Secured Notes outstanding.

Senior Secured Asset Based Revolving Credit Facility due 2018

On November 1, 2013, Ply Gem Holdings, Inc., Ply Gem Industries, Inc., Ply Gem Canada, Gienow Canada Inc., and Mitten Inc. (together with Ply Gem Canada and Gienow, the “Canadian Borrowers”) entered into an amended and restated credit agreement governing the ABL Facility. Among other things, the amendment and restatement of the credit agreement governing the ABL Facility: (i) increased the overall facility to $250.0 million from $212.5 million, (ii) increased the accordion feature to $100.0 million, (iii) reduced the applicable margin for borrowings under the ABL Facility to a range from 1.50% to 2.00% for Eurodollar rate loans, depending on availability, and (iv) increased the amount available under the ABL Facility to Ply Gem Industries' Canadian subsidiaries to $50.0 million. In November 2014, the Company exercised a portion of the accordion feature under the ABL Facility for $50.0 million, or 50% of the eligible accordion, increasing the ABL Facility from $250.0 million to $300.0 million to account for the additional borrowing base acquired from Simonton. Under the terms of the ABL Facility, the Company has the ability to further increase the revolving commitments up another $50.0 million to $350.0 million, subject to certain terms and conditions. All outstanding loans under the ABL Facility are due and payable in full on November 1, 2018. Under the ABL Facility, $250.0 million is available to Ply Gem Industries and $50.0 million is available to the Canadian Borrowers.

Borrowings under the ABL Facility bear interest at a rate per annum equal to, at Ply Gem Industries’ option, either (a) a base rate determined by reference to the higher of (1) the corporate base rate of the administrative agent under the ABL Facility and (2) the federal funds rate plus 0.5% or (b) a Eurodollar rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, in each case plus an applicable margin.  The initial applicable margin for borrowings under the ABL Facility was 0.75% for base rate loans and 1.75% for Eurodollar rate loans.  The applicable margin for borrowings under the ABL Facility is subject to step ups and step downs based on average excess availability under the ABL Facility.  Swingline loans bear interest at a rate per annum equal to the base rate plus the applicable margin.

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In addition to paying interest on outstanding principal under the ABL Facility, Ply Gem Industries is required to pay a commitment fee in respect of the unutilized commitments thereunder, which fee will be determined based on utilization of the ABL Facility (increasing when utilization is low and decreasing when utilization is high) multiplied by a commitment fee rate determined by reference to average excess availability under the ABL Facility. The commitment fee rate during any fiscal quarter is 0.375% when average excess availability is greater than $100.0 million for the preceding fiscal quarter and 0.25% when average availability is less than or equal to $100.0 million for the preceding fiscal quarter.  Ply Gem Industries must also pay customary letter of credit fees equal to the applicable margin on Eurodollar loans and agency fees.   As of October 3, 2015, the Company’s interest rate on the ABL Facility was approximately 1.80%.  The ABL Facility requires that if (a) excess availability is less than the greater of (x) 10.0% of the lower of the borrowing base and the aggregate commitments and (y) $17.5 million or (b) any event of default has occurred and is continuing, Ply Gem Industries must comply with a minimum fixed charge coverage ratio test of 1.0 to 1.0.  If the excess availability under the ABL Facility is less than the greater of (a) 12.5% of the lesser of the borrowing base and the aggregate commitments and (b) $22.5 million ($20.0 million for the months of January, February, March and April) for a period of 5 consecutive days or an event of default has occurred and is continuing, all cash from Ply Gem Industries material deposit accounts (including all concentration accounts) will be swept daily into a collection account controlled by the administrative agent under the ABL Facility and used to repay outstanding loans and cash collateralize letters of credit.

All obligations under the ABL Facility are unconditionally guaranteed by Ply Gem Holdings and substantially all of Ply Gem Industries’ existing and future, direct and indirect, wholly owned domestic subsidiaries.  All obligations under the ABL Facility, and the guarantees of those obligations, are secured, subject to certain exceptions, by substantially all of the assets of Ply Gem Industries and the guarantors, including a first-priority security interest in personal property consisting of accounts receivable, inventory, cash, deposit accounts, and certain related assets and proceeds of the foregoing and a second-priority security interest in, and mortgages on, substantially all of Ply Gem Industries’ and the Guarantors’ material owned real property and equipment and all assets that secure the Term Loan Facility on a first-priority basis.  In addition to being secured by the collateral securing the obligations of Ply Gem Industries under the domestic collateral package, the obligations of the Canadian Borrowers, which are borrowers under the Canadian sub-facility under the ABL Facility, are also secured by a first-priority security interest in substantially all of the assets of such Canadian subsidiaries, plus additional mortgages in Canada, and a pledge by Ply Gem Industries of the remaining 35% of the equity interests of the Canadian Borrowers pledged only to secure the Canadian sub-facility.

The ABL Facility contains certain covenants that limit Ply Gem Industries’ ability and the ability of Ply Gem Industries’ subsidiaries to incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem their stock, make loans and investments, sell assets, incur certain liens, enter into transactions with affiliates, and consolidate, merge or sell assets.  In particular, Ply Gem Industries is permitted to incur additional debt in limited circumstances, including, but not limited to, permitted subordinated indebtedness in an aggregate principal amount not to exceed $112.5 million at any time outstanding (subject to the ability to incur additional permitted subordinated debt provided that immediately after giving effect to such incurrence excess availability is more than 25% of the lesser of the total borrowing base and the aggregate commitments and Ply Gem Industries is in pro forma compliance with the fixed charge coverage ratio), purchase money indebtedness in an aggregate amount not to exceed $25.0 million at any one time outstanding, debt of foreign subsidiaries (other than Canadian subsidiaries) in an aggregate amount not to exceed $10.0 million at any one time outstanding, indebtedness in connection with the tax receivable agreement in an aggregate principal amount not to exceed $100.0 million, and the refinancing of debt under certain circumstances.  

On November 5, 2015, Ply Gem Industries entered into a second amended and restated ABL Facility. Among other things, the second amended and restated ABL Facility: (i) increased the overall facility to $350.0 million, (ii) provided an accordion feature of $50.0 million, and (iii) established the applicable margin for borrowings under the ABL Facility to a range of 1.25% to 2.00% for Eurodollar rate loans, depending on availability. All outstanding loans under the second amended and restated ABL Facility are due and payable in full on November 5, 2020.

As of October 3, 2015, Ply Gem Industries had approximately $273.2 million of contractual availability and approximately $247.2 million of borrowing base availability under the ABL Facility, reflecting $20.0 million of borrowings outstanding and approximately $6.8 million of letters of credit and priority payables reserves.

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9.375% Senior Notes due 2017

On September 27, 2012, Ply Gem Industries issued $160.0 million of 9.375% Senior Notes at par. Ply Gem Industries used the proceeds of the offering, together with cash on hand, to satisfy and discharge its obligations under the 13.125% Senior Subordinated Notes and the indenture governing the 13.125% Senior Subordinated Notes. The 9.375% Senior Notes would have matured on April 15, 2017 and bore interest at the rate of 9.375% per annum. Interest was paid semi-annually on April 15 and October 15 of each year. The 9.375% Senior Notes were unsecured and fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis by the Guarantors.

On January 30, 2014, Ply Gem Industries purchased approximately $94.7 million of the outstanding 9.375% Senior Notes at a tender price of $1,108.36 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. On January 30, 2014, Ply Gem Industries irrevocably deposited with the trustee for the 9.375% Senior Notes an amount sufficient to satisfy and discharge its obligations under the 9.375% Senior Notes and the indenture. On February 16, 2014, Ply Gem Industries redeemed the remaining outstanding principal amount of the 9.375% Senior Notes at a redemption price equal to 100% of the principal amount plus the “make-whole” premium required under the indenture (which equated to 110.179% of the principal amount thereof), plus accrued and unpaid interest. Following the redemption, there were no longer any 9.375% Senior Notes outstanding.

Loss on debt modification or extinguishment

As a result of the January 2014 6.50% Senior Notes and Term Loan Facility issuance and the tender, redemption, and repurchase of the 8.25% Senior Secured Notes and the 9.375% Senior Notes (the "January 2014 Refinancing") during the nine months endedSeptember 27, 2014, the Company performed an analysis to determine the proper accounting treatment for the January 2014 Refinancing. Specifically, the Company evaluated each creditor with ownership in both the new 6.50% Senior Notes and/or Term Loan Facility debt instruments and the old 8.25% Senior Secured Notes and/or 9.375% Senior Notes to determine whether the transaction should be accounted for as a modification or an extinguishment of debt as it relates to each individual creditor. The Company had approximately $34.4 million of unamortized debt discount and $14.9 million of unamortized debt issuance costs associated with the 8.25% Senior Secured Notes and 9.375% Senior Notes, of which approximately $4.8 million and $2.1 million, respectively, were expensed as a loss on extinguishment of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014 as a result of the January 2014 Refinancing.

The Company also incurred an early tender premium of approximately $61.1 million in conjunction with this transaction, of which approximately $52.6 million was recorded as a discount on the 6.50% Senior Notes and the Term Loan Facility and approximately $8.5 million was expensed as a loss on extinguishment of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014. The Company also expensed approximately $0.3 million for the third party fees for the 8.25% Senior Secured Notes and 9.375% Senior Notes as a result of the January 2014 Refinancing for the nine months endedSeptember 27, 2014. The Company also incurred approximately $14.7 million of costs associated with the 6.50% Senior Notes and Term Loan Facility, of which approximately $9.2 million was recorded as debt issuance costs and approximately $5.5 million was expensed as a loss on modification of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014. Additionally, the Company incurred an original issue discount of approximately $2.2 million for the Term Loan Facility, of which approximately $1.9 million was recorded as a discount and approximately $0.3 million was expensed as a loss on extinguishment of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014.

Based on the January 2014 Refinancing, the Company recognized a loss on debt modification or extinguishment of approximately $21.4 million for the nine months endedSeptember 27, 2014, as summarized in the table below. There was no loss on debt modification or extinguishment in the three and nine months ended October 3, 2015 or the three months ended September 27, 2014.

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(Amounts in thousands)	For the nine months ended
	October 3, 2015		September 27, 2014
Loss on extinguishment of debt:
Tender premium	$	—	$	(8,493	)
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized discount	—		(4,773		)
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized debt issuance costs	—		(2,067		)
Term Loan Facility unamortized discount	—		(255		)
	—		(15,588		)
Loss on modification of debt:
Third party fees for 8.25% Senior Secured Notes and 9.375% Senior Notes	—		(302		)
Third party fees for 6.50% Senior Notes and Term Loan Facility	—		(5,474		)
	—		(5,776		)
Total loss on modification or extinguishment of debt	$	—	$	(21,364	)

7.   PENSION PLANS

The Company has two pension plans, the Ply Gem Group Pension Plan and the MW Manufacturers, Inc. Retirement Plan. The Company’s net periodic benefit expense for the combined plans for the periods indicated consists of the following components:

(Amounts in thousands)	For the three months ended						For the nine months ended
	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Service cost	$	—		$	—		$	—		$	—
Interest cost	502			476			1,505			1,427
Expected return on plan assets	(577		)	(567		)	(1,732		)	(1,702		)
Amortization of loss	296			116			889			347
Net periodic benefit expense	$	221		$	25		$	662		$	72

8.   COMMITMENTS AND CONTINGENCIES

Indemnifications

In connection with the Ply Gem acquisition, in which Ply Gem Industries was acquired from Nortek, Inc. (“Nortek”) in February 2004, Nortek has agreed to indemnify the Company for certain liabilities as set forth in the stock purchase agreement governing the Ply Gem acquisition.  In the event Nortek is unable to satisfy amounts due under these indemnifications, the Company would be liable.  The Company believes that Nortek has the financial capacity to honor its indemnification obligations and therefore does not anticipate incurring any losses related to liabilities indemnified by Nortek under the stock purchase agreement.  A receivable related to this indemnification has been recorded in other long-term assets of approximately $2.1 million and $2.9 million at October 3, 2015 and December 31, 2014, respectively.  As of October 3, 2015 and December 31, 2014, the Company has recorded liabilities related to these indemnifications of approximately $0.5 million and $0.5 million, respectively, in current liabilities and $1.6 million and $2.4 million, respectively, in long-term liabilities, consisting of the following:

(Amounts in thousands)	October 3, 2015		December 31, 2014
Product claim liabilities	$	138	$	138
Multi-employer pension plan withdrawal liability	1,304		2,094
Other	665		644
	$	2,107	$	2,876

Warranty claims

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The Company sells a number of products and offers a number of warranties.  The specific terms and conditions of these warranties vary depending on the product sold.  The Company estimates the costs that may be incurred under their warranties and records a liability for such costs at the time of sale.  Factors that affect the Company’s warranty liabilities include the number of units sold, historical and anticipated rates of warranty claims, cost per claim and new product introduction.  The Company assesses the adequacy of the recorded warranty claims and adjusts the amounts as necessary.  As of October 3, 2015 and December 31, 2014, warranty liabilities of approximately $18.1 million and $18.3 million, respectively, have been recorded in current liabilities and approximately $58.6 million and $66.1 million, respectively, have been recorded in long term liabilities. The decrease in the warranty liabilities from December 31, 2014 relates to Simonton purchase accounting adjustments.

Changes in the Company’s short-term and long-term warranty liabilities are as follows:

	For the three months ended						For the nine months ended
(Amounts in thousands)	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Balance, beginning of period	$	76,977		$	40,397		$	84,423		$	42,466
Acquisition - Canyon	—			—			100			—
Acquisition adjustments - Simonton	241			5,370			(7,761		)	5,370
Warranty expense during period	7,463			2,897			16,055			8,209
Settlements made during period	(7,925		)	(5,148		)	(16,061		)	(12,529		)
Balance, end of period	$	76,756		$	43,516		$	76,756		$	43,516

Environmental

The Company is subject to United States and Canadian federal, state, provincial and local laws and regulations relating to pollution and the protection of the environment, including those governing emissions to air, discharges to water, use, storage and transport of hazardous materials, storage, treatment and disposal of waste, remediation of contaminated sites, and protection of worker health and safety. From time to time, the Company's facilities are subject to investigation by governmental regulators. In addition, the Company has been identified as one of many potentially responsible parties for contamination present at certain offsite locations to which it or its predecessors are alleged to have sent hazardous materials for recycling or disposal. The Company may be held liable, or incur fines or penalties, in connection with such requirements or liabilities for, among other things, releases of hazardous substances occurring on or emanating from current or formerly owned or operated properties or any associated offsite disposal location, or for known or newly-discovered contamination at any of the Company's properties from activities conducted by us or previous occupants. The amount of any liability, fine or penalty may be material, and certain environmental laws impose strict, and under certain circumstances joint and several, liability for the cost of addressing releases of hazardous substances upon certain classes of persons, including site owners or operators and persons that disposed or arranged for the disposal of hazardous substances at contaminated sites.

MW Manufacturers Inc. (“MW”), a subsidiary of MWM Holding, Inc., entered into an Administrative Order on Consent (the “Consent Order”), effective September 12, 2011, with the United States Environmental Protection Agency (“EPA”), Region III, under Section 3008(h) of the Resource Conservation and Recovery Act (RCRA), with respect to its Rocky Mount, Virginia property.  During 2011, as part of the Consent Order, MW provided the EPA, among other things, a RCRA Facility Investigation Workplan (the “Workplan”) as well as a preliminary cost estimate of approximately $1.8 million for the predicted assessment, remediation and monitoring activities to be conducted pursuant to the Consent Order over the remediation period, which is currently estimated through 2023. During 2012, the EPA approved the Workplan, and MW is currently implementing the Workplan. The Company has recorded approximately $0.3 million of this environmental liability within current liabilities and approximately $1.2 million within other long-term liabilities in the Company’s condensed consolidated balance sheet at October 3, 2015 and December 31, 2014.  The Company will adjust this environmental remediation liability in future periods, if necessary, as further information develops or circumstances change.

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Certain liabilities with respect to this contamination relate to the previous closure of an underground storage tank and were assumed by U.S. Industries, Inc., pursuant to its indemnity obligation under the stock purchase agreement dated August 11, 1995, whereby U.S. Industries, Inc. sold the stock of MW to FPI Acquisition Corp. (“Fenway Partners”). As the successor-in-interest of Fenway Partners, the Company is similarly indemnified by U.S. Industries, Inc.  The Company’s ability to seek indemnification from U.S. Industries, Inc. is, however, limited by the terms and limits of the indemnity as well as the strength of U.S. Industries, Inc.’s financial condition, which could change in the future.  As of October 3, 2015, no recovery has been recognized on the Company’s condensed consolidated balance sheet, but the Company will actively pursue this indemnity in future periods and will recognize future recoveries in the period in which they become probable.

The State of Nebraska is investigating certain groundwater contamination in northern York, Nebraska, comprised primarily of volatile organic compounds (VOC) (predominantly trichloroethene (TCE)). In December 2013, the EPA announced its proposal to add this groundwater contamination site to the Superfund National Priorities List (NPL) after it was referred to the EPA by the State of Nebraska. Sampling was conducted at the Kroy Building Products, Inc. (“Kroy”) facility in York, Nebraska during the first quarter of 2010. In February 2015, the EPA sent a request for information pursuant to Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), and Kroy has responded to this request for information. Given the preliminary stage of this matter, the Company has not recorded a liability for this matter in its condensed consolidated balance sheet as of October 3, 2015. Alcan Aluminum Corporation (“Alcan”) has assumed the obligation to indemnify the Company with respect to certain liabilities for environmental contamination of the Kroy facility occurring prior to 1994. Notwithstanding this indemnity, however, under applicable Federal and State laws, Kroy, and Ply Gem as its parent, could be held liable for all or part of the costs associated with the matter under certain circumstances. Moreover, the ability of Kroy and Ply Gem to seek indemnification may be limited by the terms and limits of the indemnity as well as the strength of Alcan’s financial condition, which could change in the future.

The Company is currently involved in environmental proceedings involving Gienow Canada Inc. (f/k/a Ply Gem Canada, Inc.) and Alberta Environment (arising from subsurface contamination discovered at our Calgary, Alberta property) for which the Company has a $0.1 million liability included in its condensed consolidated balance sheet, and the Company may in the future be subject to environmental proceedings involving Thermal-Gard, Inc. (arising from groundwater contamination in Punxsutawney, Pennsylvania), Mastic Home Exteriors, Inc. (“MHE”) (relating to a closed landfill site in Sidney, Ohio as well as participating as a potentially responsible party in nine contaminated sites in Indiana, Ohio and South Carolina), and Simonton (relating to closed lagoons and certain contamination in Paris, Illinois as well as certain contamination associated with certain 7-Eleven convenience food stores). Under the stock purchase agreement governing the MHE acquisition, Alcoa Securities Corporation and Alcoa, Inc. are to indemnify the Company for certain environmental liabilities in excess of $2.5 million including liabilities relating to the landfill site in Sidney, Ohio and the nine contaminated sites in Indiana, Ohio and South Carolina. Under the stock purchase agreement governing the Simonton acquisition, Fortune Brands Windows & Doors, Inc., is to indemnify the Company for any environmental claims associated with the 7-Eleven convenience food stores. The Company's ability to seek indemnification or enforce these and other obligations is, however, limited by the strength of the financial condition of the indemnitor or responsible party, which could change in the future, as well as the terms and limits of any such indemnities or obligations.

Based on current information, the Company is not aware of any compliance obligations, claims, releases or investigations that will have a material adverse effect on our results of operations, cash flows or financial position except as otherwise disclosed in the Company's condensed consolidated financial statements. However, there can be no guarantee that previously known or newly-discovered matters or any inability to enforce our available indemnification rights against previous owners of the Company or its subsidiaries will not result in material costs or liabilities. While the purchase agreements governing certain of our acquisitions provide that the sellers will indemnify us, subject to certain limitations, for certain environmental liabilities, our ability to seek indemnification from the respective sellers is limited by various factors, including the financial condition of the indemnitor or responsible party as well as by the terms and limits of such indemnities or obligations. As a result, there can be no assurance that we could receive any indemnification from the sellers, and any related environmental liabilities, costs or penalties could have a material adverse effect on our financial condition and results of operations.

Self-insured risks

The Company maintains a broad range of insurance policies which include general liability insurance coverage and workers compensation. These insurance policies protect the Company against a portion of the risk of loss from claims. However, the Company retains a portion of the overall risk for such claims through its self-insured per occurrence and aggregate retentions, deductibles, and claims in excess of available insurance policy limits. The Company's general liability insurance includes coverage for certain damages arising out of product design and manufacturing defects. The Company's insurance coverage is generally subject to a per occurrence retention.

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The Company reserves for costs associated with claims, as well as incurred but not reported losses (“IBNR”), based on an outside actuarial analysis of its historical claims. These estimates make up a significant portion of the Company's liability and are subject to a high degree of uncertainty due to a variety of factors, including changes in type of claims, claims reporting and resolution patterns, frequency and timing of claims, third party recoveries, estimates of claim values, claims management expenses (including legal fees and expert fees), insurance industry practices, the regulatory environment, and legal precedent. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs.

Litigation

During the past several years, the Company incurred increased litigation expense primarily related to the claims discussed below. The Company believes it has valid defenses to the claims discussed below and will vigorously defend all such claims; however, litigation is subject to many uncertainties and there cannot be any assurance that the Company will ultimately prevail or, in the event of an unfavorable outcome or settlement of litigation, that the ultimate liability would not be material and would not have a material adverse effect on the business, results of operations, cash flows or financial position of the Company.

In John Gulbankian v. MW Manufacturers, Inc. (“Gulbankian”), a purported class action filed in March 2010 in the United States District Court for the District of Massachusetts (the “Court”), plaintiffs, on behalf of themselves and all others similarly situated, alleged damages as a result of the defective design and manufacture of certain MW vinyl clad windows. In Eric Hartshorn and Bethany Perry v. MW Manufacturers, Inc. (“Hartshorn”), a purported class action filed in July 2012 in the Court, plaintiffs, on behalf of themselves and all others similarly situated, alleged damages as a result of the defective design and manufacture of certain MW vinyl clad windows. On April 22, 2014, plaintiffs in both the Gulbankian and Hartshorn cases filed a Consolidated Amended Class Action Complaint, making similar claims against all MW vinyl clad windows.

MW entered into a settlement agreement with plaintiffs as of April 18, 2014 to settle both the Gulbankian and Hartshorn cases on a nationwide basis (the “Vinyl Clad Settlement Agreement”). The Vinyl Clad Settlement Agreement provides that this settlement applies to any and all MW vinyl clad windows manufactured from January 1, 1987 through May 23, 2014, and provides for a cash payment for eligible consumers submitting qualified claims showing, among other requirements, certain damage to their MW vinyl clad windows. The period for submitting qualified claims is the later of: (i) May 28, 2016, or (ii) the last day of the warranty period for the applicable window. On December 29, 2014, the Court granted final approval of this settlement, as well as MW’s payment of attorneys' fees and costs to plaintiffs' counsel in the amount of

$2.5 million, issuing a Final Approval Order, Final Judgment, and Order of Dismissal with Prejudice (the "Final Approval Order"). A notice of appeal of the Final Approval Order (the “Appeal”) was given by certain objectors to the settlement, and on May 6, 2015, MW entered into a settlement agreement with, among others, the objectors to fully and finally resolve their claims, including the dismissal of Karl Memari v. Ply Gem Prime Holdings, Inc. et al., another lawsuit seeking class certification with respect to MW's vinyl clad windows, making the Vinyl Clad Settlement Agreement final and binding on the parties. The Company and MW deny all liability in the settlements and with respect to the facts and claims alleged. The Company, however, is aware of the substantial burden, expense, inconvenience and distraction of continued litigation, and therefore agreed to settle these matters.

As a result of the Vinyl Clad Settlement Agreement, the Company recognized a $5.0 million expense during the nine months ended September 27, 2014 within selling, general, and administrative expenses in the Company’s condensed consolidated statement of operations and comprehensive income (loss) in the Company's Windows and Doors segment. It is possible that the Company may incur costs in excess of the recorded amounts; however, the Company currently expects that the total net cost will not exceed $5.0 million. As of October 3, 2015, approximately $1.6 million of this liability is currently outstanding with $0.6 million as a current liability within accrued expenses and $0.9 million as a noncurrent liability within other long-term liabilities in the Company’s condensed consolidated balance sheet.

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In Anthony Pagliaroni et al. v. Mastic Home Exteriors, Inc. and Deceuninck North America, LLC, a purported class action filed in January 2012 in the United States District Court for the District of Massachusetts, plaintiffs, on behalf of themselves and all others similarly situated, allege damages as a result of the defective design and manufacture of Oasis composite deck and railing, which was manufactured by Deceuninck North America, LLC (“Deceuninck”) and sold by Mastic Home Exteriors, Inc. (“MHE”). The plaintiffs seek a variety of relief, including (i) economic and compensatory damages, (ii) treble damages, (iii) punitive damages, and (iv) attorneys' fees and costs of litigation. The damages sought in this action have not yet been quantified. The hearing regarding plaintiffs’ motion for class certification was held on March 10, 2015. The Court denied plaintiffs’ motion for class certification on September 22, 2015, and on October, 6, 2015, plaintiffs filed a petition for interlocutory appeal of the denial of class certification to the U.S. Court of Appeals for the First Circuit. The Court of Appeals has not yet ruled on plaintiffs’ petition for appeal. Deceuninck, as the manufacturer of Oasis deck and railing, has agreed to indemnify MHE for certain liabilities related to this claim pursuant to the sales and distribution agreement, as amended, between Deceuninck and MHE. MHE's ability to seek indemnification from Deceuninck is, however, limited by the terms and limits of the indemnity as well as the strength of Deceuninck's financial condition, which could change in the future.

In The Muhler Company, Inc. v. Ply Gem Prime Holdings, Inc. et al., a lawsuit filed in April 2011 in the United States District Court for the District of South Carolina, Charleston Division (the “Court”), plaintiff alleges unfair competition and trade practices. The plaintiff seeks a variety of relief, including (i) consequential damages, (ii) treble damages, (iii) punitive damages, and (iv) attorneys' fees and costs of litigation. In April 2013, the Court granted the Company's motion for summary judgment with respect to the federal Lanham Act claims. In May 2013, the plaintiff filed a notice of appeal to the U.S. Court of Appeals for the Fourth Circuit with respect to the summary judgment granted on the federal Lanham Act claims, and the Fourth Circuit denied interlocutory appeal. With the summary judgment granted on the federal Lanham Act claims, only state unfair competition and trade practices claims remain. In April 2015, the Court heard arguments on the Company's motion for summary judgment with respect to such claims, and on July 13, 2015, the Court granted the Company’s motion. On July 27, 2015, the plaintiff filed an appeal with the U.S. Court of Appeals for the Fourth Circuit with respect to the Court’s ruling. The U.S. Court of Appeals for the Fourth Circuit has yet to rule on the plaintiff’s appeal. The damages sought in this action have not yet been quantified.

In rePly Gem Holdings, Inc. Securities Litigation isa purported federal securities class action filed on May 19, 2014 in the United States District Court for the Southern District of New York against Ply Gem Holdings, Inc., several of its directors and officers, and the underwriters associated with the Company’s IPO. It is filed on behalf of all persons or entities, other than the defendants, who purchased the common shares of the Company pursuant and/or traceable to the Company’s IPO and seeks remedies under Sections 11 and 15 of the Securities Act of 1933, alleging that the Company’s Form S-1 registration statement was negligently prepared and materially inaccurate, containing untrue statements of material fact and omitting material information which was required to be disclosed. The plaintiffs seek a variety of relief, including (i) damages together with interest thereon and (ii) attorneys’ fees and costs of litigation. On October 14, 2014, Strathclyde Pension Fund was certified as lead plaintiff, and class counsel was appointed. On February 13, 2015 the defendants filed their motion to dismiss the complaint, on April 14, 2015 the lead plaintiff filed its opposition to that motion to dismiss, and on May 14, 2015 the defendants filed their reply brief in support of their motion to dismiss. On September 29, 2015, the Court granted defendants’ motion to dismiss, but ruled that plaintiff could file an amended complaint. On November 6, 2015, plaintiff filed an amended complaint. The damages sought in this action have not yet been quantified. Pursuant to the Underwriting Agreement, dated May 22, 2013, entered into in connection with the IPO, the Company has agreed to reimburse the underwriters for the legal fees and other expenses reasonably incurred by the underwriters’ law firm in its representation of the underwriters in connection with this matter. Pursuant to Indemnification Agreements, dated as of May 22, 2013, between the Company and each of the directors and officers named in this action, the Company has agreed to assume the defense of such directors and officers. The Company believes the purported federal securities class action is without merit and will vigorously defend against the lawsuit.

27

Other contingencies

The Company is subject to other contingencies, including legal proceedings and claims arising out of its operations and businesses that cover a wide range of matters, including, among others, environmental, contract, employment, personal injury, property damage, product liability, warranty, and modification, adjustment or replacement of component parts or units sold, which may include product recalls.  Product liability, environmental and other legal proceedings also include matters with respect to businesses previously owned.  The Company has used various substances in their products and manufacturing operations, which have been or may be deemed to be hazardous or dangerous, and the extent of its potential liability, if any, under environmental, product liability and workers’ compensation statutes, rules, regulations and case law is unclear.  Further, due to the lack of adequate information and the potential impact of present regulations and any future regulations, there are certain circumstances in which no range of potential exposure may be reasonably estimated.  Also, it is not possible to ascertain the ultimate legal and financial liability with respect to certain contingent liabilities, including lawsuits, and therefore no such estimate has been made as of October 3, 2015.

9.   ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES

Accrued expenses consist of the following at October 3, 2015 and December 31, 2014:

(Amounts in thousands)	October 3, 2015		December 31, 2014
Insurance	$	9,023	$	9,144
Employee compensation and benefits	18,327		15,576
Sales and marketing	55,134		36,279
Product warranty	18,107		18,325
Accrued freight	2,452		1,278
Accrued interest	7,506		16,470
Accrued environmental liability	436		451
Accrued pension	1,753		1,753
Accrued sales returns and discounts	4,894		3,054
Accrued taxes	6,234		3,898
Litigation accrual	630		2,573
Other	26,247		38,524
	$	150,743	$	147,325

Other long-term liabilities consist of the following at October 3, 2015 and December 31, 2014:

(Amounts in thousands)	October 3, 2015		December 31, 2014
Insurance	$	1,452	$	1,705
Pension liabilities	13,242		13,327
Multi-employer pension withdrawal liability	1,304		2,094
Product warranty	58,649		66,098
Long-term product claim liability	138		138
Long-term environmental liability	1,212		1,227
Liabilities for tax uncertainties	2,564		3,065
Litigation accrual	937		2,000
Other	5,940		5,160
	$	85,438	$	94,814

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Long-term incentive plan

The Company has a long-term incentive plan (“LTIP”) for certain employees. The long-term incentive plan was implemented to retain and incentivize key employees. During the three months ended October 3, 2015 and September 27, 2014, the Company recognized a LTIP expense of $0.7 million and $0.5 million, respectively, which has been recorded within selling, general, and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss). During the nine months ended October 3, 2015 and September 27, 2014, the Company recognized a LTIP expense of $2.2 million and $1.5 million, respectively, which has been recorded within selling, general, and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss). The LTIP liability was $4.1 million and $4.5 million as of October 3, 2015 and December 31, 2014, respectively, of which $2.8 million and $2.5 million has been recorded within accrued expenses and $1.3 million and $2.0 million in other long-term liabilities in the condensed consolidated balance sheets as of October 3, 2015 and December 31, 2014, respectively.

Other liabilities

During the three months ended October 3, 2015 and September 27, 2014, the Company made approximately $0.3 million and $1.1 million, in cash payments on restructuring liabilities, respectively. During the nine months ended October 3, 2015 and September 27, 2014, the Company made approximately $1.8 million and $4.4 million, in cash payments on restructuring liabilities, respectively. These payments were for a restructuring and integration program implemented in Western Canada and general back office centralization efforts incurred as well as product simplification costs incurred for the entire Windows and Doors segment.

10.   INCOME TAXES

Effective tax rate

Under FASB Accounting Standards Codification 740-270, Income Taxes - Interim Reporting, each interim period is considered an integral part of the annual period and tax expense is measured using an estimated annual effective rate. Estimates of the annual effective tax rate at the end of interim periods are, of necessity, based on evaluation of possible future events and transactions and may be subject to subsequent refinement or revision. The Company calculates its quarterly tax provision consistent with the guidance provided by ASC 740-270, whereby the Company forecasts its estimated annual effective tax rate then applies that rate to its year-to-date pre-tax book income (loss). In addition, we exclude jurisdictions with a projected loss for the year or the year-to-date loss where we cannot recognize a tax benefit from our estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings versus annual projections. In addition to the tax resulting from applying the estimated annual effective tax rate to pre-tax income (loss), the Company includes certain items treated as discrete events to arrive at an estimated effective tax rate. Future changes in the forecasted annual income (loss) projections, tax rate changes, or discrete tax items could result in significant adjustments to quarterly income tax expense (benefit) in future periods in accordance with ASC 740-270.

For the nine months endedOctober 3, 2015, the Company's estimated effective income tax rate was approximately 7.1%, which varied from the statutory rate primarily due to state income tax expense, valuation allowances, tax contingencies, and foreign income taxes. The effective tax rate including discrete items was 8.2%. The tax expense for the three months ended October 3, 2015 was approximately $2.1 million. The tax benefit for the nine months ended October 3, 2015 was approximately $1.8 million.

Valuation allowance

As of October 3, 2015, a full valuation allowance has been provided against certain deferred tax assets as it is presently deemed more likely than not that the benefit of such net tax assets will not be utilized. All of the Company's subsidiaries, excluding Mitten, are in a full valuation allowance position as of October 3, 2015.

Due to recent cumulative losses incurred by the Company, management did not rely upon projections of future taxable income in assessing the recoverability of deferred tax assets. The Company currently has book goodwill of approximately $31.0 million that is not amortized, which results in a deferred tax liability of approximately $6.8 million at October 3, 2015. Therefore, the reversal of deferred tax liabilities related to this goodwill is not considered a source of future taxable income in assessing the realization of its deferred tax assets. The Company continues to evaluate its ability to realize the net deferred tax assets and its estimates are subject to change.

Tax uncertainties

29

Despite the Company’s belief that its tax return positions are consistent with applicable tax laws, the Company believes that certain positions could be challenged by taxing authorities. The Company’s tax reserves reflect the difference between the tax benefit claimed on tax returns and the amount recognized in the condensed consolidated financial statements. These reserves have been established based on management’s assessment as to potential exposure attributable to permanent differences and interest applicable to both permanent and temporary differences. The tax reserves are reviewed periodically and adjusted in light of changing facts and circumstances, such as progress of tax audits, lapse of applicable statutes of limitations and changes in tax law. Certain income tax returns are currently under examination by various taxing authorities. During the nine months endedOctober 3, 2015, the Company decreased its tax contingency reserve by approximately $0.5 million. Tax reserves of approximately $0.7 million were reversed in addition to the reversal of $0.3 million of interest during the nine months endedOctober 3, 2015. Additionally, approximately $0.4 million of penalties and $0.2 million of interest expense were recorded on the remaining uncertain tax positions during the nine months endedOctober 3, 2015.

Tax Receivable Agreement

On May 22, 2013, the Company entered into a Tax Receivable Agreement (the “Tax Receivable Agreement”) with PG ITR Holdco, L.P. (the “Tax Receivable Entity”). The Tax Receivable Agreement generally provides for the payment by the Company to the Tax Receivable Entity of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes in periods ending after the IPO as a result of (i) net operating loss ("NOL") carryovers from periods (or portions thereof) ending before January 1, 2013, (ii) deductible expenses attributable to the transactions related to the IPO and (iii) deductions related to imputed interest deemed to be paid by the Company as a result of or attributable to payments under the Tax Receivable Agreement. The term of the Tax Receivable Agreement will continue until all such benefits have been utilized or expired. The Company will retain the benefit of the remaining 15% of these tax savings. The Tax Receivable Agreement will obligate the Company to make payments to the Tax Receivable Entity generally equal to 85% of the applicable cash savings that is actually realized as a result of utilizing NOL carryovers once the tax returns are filed for that respective tax year.

The Company estimates that the total anticipated amount of future payments under the Tax Receivable Agreement will be approximately $100.0 million assuming no material changes in the relevant tax law, that the Company earns sufficient taxable income to utilize the net operating loss carrying forwards, and that utilization of such tax attributes is not subject to limitation under Section 382 of the Internal Revenue Code of 1986, as amended (the "Code") as the result of an “ownership change”. It is possible that future transactions or events or changes in estimates could increase or decrease the actual tax benefits realized from these tax attributes and the corresponding Tax Receivable Agreement payments and liability. Future changes in the Company's full valuation allowance position including the reversal of all or a portion of the Company's valuation allowance will increase the Tax Receivable Agreement liability up to the $100.0 million estimate.

As of October 3, 2015, the Company had a long-term liability of approximately $24.4 million for the amount due pursuant to the Tax Receivable Agreement related to NOL carryovers. The Company recognized a $1.7 million benefit and $14.0 million expense for this liability during the three months ended October 3, 2015 and September 27, 2014, respectively. The Company recognized an expense of $13.5 million and $14.4 million for this liability during the nine months endedOctober 3, 2015 and September 27, 2014, respectively.

Other

As of October 3, 2015, the Company has not established U.S. deferred taxes on unremitted earnings of the Company’s foreign subsidiaries. Notwithstanding the provisions within the American Jobs Creation Act of 2004, the Company continues to consider these amounts to be permanently invested.

11.   STOCK-BASED COMPENSATION

A rollforward of stock options outstanding during the nine months endedOctober 3, 2015 is presented below: 

30

	Stock Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Balance at January 1, 2015	2,749,064		$	13.38	5.50
Granted	247,808		12.62		—
Exercised	(225,960	)	9.75		—
Forfeited or expired	(197,119	)	—		—
Balance at October 3, 2015	2,573,793		$	13.70	5.71

As of October 3, 2015, 2,138,571 options were 100% vested.  At October 3, 2015, the Company had approximately $1.3 million of total unrecognized compensation expense that will be recognized over a weighted average period of 1.81 years.  The Company recorded compensation expense of $0.4 million and $0.6 million for the three months ended October 3, 2015 and September 27, 2014, respectively, and $1.4 million and $1.5 million for the nine months ended October 3, 2015 and September 27, 2014, respectively, related to stock option grants.

Restricted stock

During March 2014, the Company issued 3,523 restricted shares of common stock to each of three independent members of the Board of Directors.  These shares vested over the approximate ten-month period to December 31, 2014 and the Company expensed these items ratably over the ten-month period up to the vesting date. One issuance of these shares, or 3,523 shares, became immediately fully vested during May 2014. Additionally, during May 2014, the Company issued 5,240 restricted shares of common stock to each of the two new independent members of the Board of Directors.  These shares will vest over the approximate eight-month period to December 31, 2014 and the Company expensed these items ratably over the eight-month period up to the vesting date. During the three and nine months ended September 27, 2014, the Company expensed approximately $0.1 million and $0.2 million, respectively, related to these grants in selling, general, and administrative expenses within the condensed consolidated statement of operations and comprehensive income (loss).

During December 2014, the Company issued an aggregate of 23,944 restricted shares of common stock in an equal number to each of the four independent members of the Board of Directors.  These shares will vest over the 2015 calendar period and the Company will expense these items as compensation expense, ratably during 2015. During the three and nine months ended October 3, 2015, the Company expensed approximately $0.1 million and $0.2 million, respectively, related to these grants in selling, general, and administrative expenses within the condensed consolidated statement of operations and comprehensive income (loss).

12.   SEGMENT INFORMATION

The Company defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by management in deciding how to allocate resources and in assessing performance.  The Company has two reportable segments:  (1) Siding, Fencing and Stone and (2) Windows and Doors.

The income before income taxes of each segment includes the revenue generated on transactions involving products within that segment less identifiable expenses.  Unallocated income and expenses include items which are not directly attributed to or allocated to either of the Company’s reporting segments.  Such items include interest, legal costs, corporate payroll, and unallocated finance, and accounting expenses. Unallocated corporate assets include cash and certain receivables.  Interest expense is presented net of interest income.

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Following is a summary of the Company’s segment information:

	For the three months ended						For the nine months ended
(Amounts in thousands)	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Net sales
Siding, Fencing and Stone	$	255,069		$	244,416		$	650,084		$	609,419
Windows and Doors	275,815			193,432			759,182			507,105
	$	530,884		$	437,848		$	1,409,266		$	1,116,524
Operating earnings (loss)
Siding, Fencing and Stone	$	51,122		$	44,756		$	106,118		$	89,484
Windows and Doors	18,798			3,773			11,960			(17,793		)
Unallocated	(7,919		)	(6,602		)	(24,463		)	(18,116		)
	$	62,001		$	41,927		$	93,615		$	53,575
	Total assets as of
	October 3, 2015			December 31, 2014
Total assets
Siding, Fencing and Stone	$	719,469		$	673,543
Windows and Doors	528,484			528,938
Unallocated	63,187			52,094
	$	1,311,140		$	1,254,575

13.  RELATED PARTY TRANSACTIONS

During March 2015, the Company entered into new retention agreements with the Company's Chief Executive Officer and Chief Financial Officer for $3.0 million and $1.3 million, respectively. These retention agreements incentivize these individuals for three years and will require the Company to make cumulative payments of $4.3 million on December 31, 2017, if both individuals remain employed in their current positions on that date.

14.   RESTRUCTURING

During 2013, the Company announced that it will realign production across two manufacturing facilities in Calgary, Alberta, Canada, in an effort to improve the Company’s overall operating efficiency. The two manufacturing facilities resulted from the Company’s acquisition of Gienow, completed in April 2013, combined with the pre-existing manufacturing facility of Ply Gem Canada. These realignment plans include shifting the majority of the vinyl window and door production into Gienow’s manufacturing facility in Calgary, Alberta, Canada, while maintaining wood window and door production in Ply Gem Canada’s manufacturing facility also located in Calgary, Alberta, Canada. In connection with this realignment, distribution was realigned across Gienow and Ply Gem Canada distribution centers in Western Canada.

Production began to be realigned during 2013, with the majority completed by March 2014. In connection with these plans, the Company originally expected to incur pre-tax exit and restructuring cash and non-cash costs totaling approximately $2.9 million, which includes approximately $0.2 million for contract termination costs, approximately $1.1 million of personnel-related costs and approximately $1.6 million of other facilities-related costs.

The following table summarizes the Company's restructuring activity for the nine months ended October 3, 2015:

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(Amounts in thousands)	Accrued as of		Adjustments			Expensed		Cash payments			Accrued as of
	December 31, 2014		during 2015			during 2015		during 2015			October 3, 2015
Western Canada
Severance costs	$	283	$	(13	)	$	805	$	(1,075	)	$	—
Contract terminations	129		(16		)	—		—			113
	$	412	$	(29	)	$	805	$	(1,075	)	$	113

The adjustments incurred in the nine months ended October 3, 2015 are related to the foreign currency translation impact of the related balances during the period.

The Company recorded restructuring costs in selling, general and administrative expenses in the condensed consolidated statements of operations in the periods and in the segments shown in the following table:

	For the three months ended				For the nine months ended
(Amounts in thousands)	October 3, 2015		September 27, 2014		October 3, 2015		September 27, 2014
Siding, Fencing and Stone	$	—	$	—	$	—	$	—
Windows and Doors	—		819		805		3,012
	$	—	$	819	$	805	$	3,012

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15.   GUARANTOR/NON-GUARANTOR

The 6.50% Senior Notes were issued by our direct 100% owned subsidiary, Ply Gem Industries, and are fully and unconditionally guaranteed on a joint and several basis by the Company and certain of Ply Gem Industries’ 100% owned subsidiaries.  Ply Gem Industries is a 100% owned subsidiary of Ply Gem Holdings. Accordingly, the following guarantor and non-guarantor information is presented as of October 3, 2015 and December 31, 2014, and for the three and nine months ended October 3, 2015 and September 27, 2014.  The non-guarantor information presented represents our Canadian subsidiaries: Gienow and Mitten.

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Three months ended October 3, 2015
	Guarantor		Issuer						Non-
	Ply Gem		Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.		Industries, Inc.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
Net sales	$	—	$	—		$	468,789		$	62,095		$	—		$	530,884
Cost of products sold	—		—			350,646			45,457			—			396,103
Gross profit	—		—			118,143			16,638			—			134,781
Operating expenses:
Selling, general and
administrative expenses	—		7,919			46,394			12,045			—			66,358
Intercompany administrative
charges	—		—			6,554			1,452			(8,006		)	—
Amortization of intangible assets	—		—			5,346			1,076			—			6,422
Total operating expenses	—		7,919			58,294			14,573			(8,006		)	72,780
Operating earnings (loss)	—		(7,919		)	59,849			2,065			8,006			62,001
Foreign currency loss	—		—			—			(1,069		)	—			(1,069		)
Intercompany interest	—		15,882			(13,880		)	(2,002		)	—			—
Interest expense	—		(18,840		)	—			—			—			(18,840		)
Interest income	—		1			11			9			—			21
Tax receivable agreement liability adjustment	—		1,712			—			—			—			1,712
Intercompany administrative income	—		8,006			—			—			(8,006		)	—
Income (loss) before equity in
subsidiaries' income (loss)	—		(1,158		)	45,980			(997		)	—			43,825
Equity in subsidiaries' income (loss)	41,711		42,869			—			—			(84,580		)	—
Income (loss) before provision
(benefit) for income taxes	41,711		41,711			45,980			(997		)	(84,580		)	43,825
Provision (benefit) for income taxes	—		—			1,753			361			—			2,114
Net income (loss)	$	41,711	$	41,711		$	44,227		$	(1,358	)	$	(84,580	)	$	41,711
Other comprehensive income (loss):
Foreign currency translation adjustments	—		—			—			(4,121		)	—			(4,121		)
Unrealized loss on derivative instrument	—		—			—			(826		)	—			(826		)
Total comprehensive income (loss)	$	41,711	$	41,711		$	44,227		$	(6,305	)	$	(84,580	)	$	36,764

34

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Three months ended September 27, 2014
	Guarantor		Issuer						Non-
	Ply Gem		Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.		Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Net sales	$	—	$	—		$	352,856		$	84,992		$	—		$	437,848
Cost of products sold	—		—			275,938			63,321			—			339,259
Gross profit	—		—			76,918			21,671			—			98,589
Operating expenses:
Selling, general and
administrative expenses	—		6,602			28,502			16,251			—			51,355
Intercompany administrative
charges	—		—			4,528			1,047			(5,575		)	—
Amortization of intangible assets	—		—			4,008			1,299			—			5,307
Total operating expenses	—		6,602			37,038			18,597			(5,575		)	56,662
Operating earnings (loss)	—		(6,602		)	39,880			3,074			5,575			41,927
Foreign currency loss	—		—			—			(766		)	—			(766		)
Intercompany interest	—		13,328			(11,723		)	(1,605		)	—			—
Interest expense	—		(16,296		)	(4		)	—			—			(16,300		)
Interest income	—		1			4			13			—			18
Tax receivable agreement liability adjustment	—		(13,988		)	—			—			—			(13,988		)
Intercompany administrative income	—		5,575			—			—			(5,575		)	—
Income (loss) before equity in
subsidiaries' income	—		(17,982		)	28,157			716			—			10,891
Equity in subsidiaries' income	21,405		39,387			—			—			(60,792		)	—
Income before provision
(benefit) for income taxes	21,405		21,405			28,157			716			(60,792		)	10,891
Provision (benefit) for income taxes	—		—			(11,159		)	645			—			(10,514		)
Net income	$	21,405	$	21,405		$	39,316		$	71		$	(60,792	)	$	21,405
Other comprehensive income (loss):
Foreign currency translation adjustments	—		—			—			(5,009		)	—			(5,009		)
Unrealized gain on derivative instrument	—		—			—			886			—			886
Total comprehensive income (loss)	$	21,405	$	21,405		$	39,316		$	(4,052	)	$	(60,792	)	$	17,282

35

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the nine months ended October 3, 2015
	Guarantor		Issuer						Non-
	Ply Gem		Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.		Industries, Inc.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
Net sales	$	—	$	—		$	1,234,439		$	174,827		$	—		$	1,409,266
Cost of products sold	—		—			957,220			132,241			—			1,089,461
Gross profit	—		—			277,219			42,586			—			319,805
Operating expenses:
Selling, general and
administrative expenses	—		24,463			141,197			41,626			—			207,286
Intercompany administrative
charges	—		—			21,483			4,174			(25,657		)	—
Amortization of intangible assets	—		—			15,428			3,476			—			18,904
Total operating expenses	—		24,463			178,108			49,276			(25,657		)	226,190
Operating earnings (loss)	—		(24,463		)	99,111			(6,690		)	25,657			93,615
Foreign currency loss	—		—			—			(2,101		)	—			(2,101		)
Intercompany interest	—		47,474			(44,670		)	(2,804		)	—			—
Interest expense	—		(56,624		)	—			(8		)	—			(56,632		)
Interest income	—		3			24			20			—			47
Tax receivable agreement liability adjustment	—		(13,467		)	—			—			—			(13,467		)
Intercompany administrative income	—		25,657			—			—			(25,657		)	—
Income (loss) before equity in
subsidiaries' income (loss)	—		(21,420		)	54,465			(11,583		)	—			21,462
Equity in subsidiaries' income (loss)	23,224		44,644			—			—			(67,868		)	—
Income (loss) before benefit
for income taxes	23,224		23,224			54,465			(11,583		)	(67,868		)	21,462
Benefit for income taxes	—		—			(1,620		)	(142		)	—			(1,762		)
Net income (loss)	$	23,224	$	23,224		$	56,085		$	(11,441	)	$	(67,868	)	$	23,224
Other comprehensive income (loss):
Foreign currency translation adjustments	—		—			—			(11,291		)	—			(11,291		)
Unrealized gain on derivative instrument	—		—			—			145			—			145
Total comprehensive income (loss)	$	23,224	$	23,224		$	56,085		$	(22,587	)	$	(67,868	)	$	12,078

36

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the nine months ended September 27, 2014
	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Net sales	$	—		$	—		$	905,393		$	211,131		$	—		$	1,116,524
Cost of products sold	—			—			728,675			162,042			—			890,717
Gross profit	—			—			176,718			49,089			—			225,807
Operating expenses:
Selling, general and
administrative expenses	—			18,116			90,553			47,722			—			156,391
Intercompany administrative
charges	—			—			12,774			4,567			(17,341		)	—
Amortization of intangible assets	—			—			11,793			4,048			—			15,841
Total operating expenses	—			18,116			115,120			56,337			(17,341		)	172,232
Operating earnings (loss)	—			(18,116		)	61,598			(7,248		)	17,341			53,575
Foreign currency loss	—			—			—			(517		)	—			(517		)
Intercompany interest	—			45,352			(42,753		)	(2,599		)	—			—
Interest expense	—			(52,033		)	(30		)	(2		)	—			(52,065		)
Interest income	—			4			24			36			—			64
Tax receivable agreement liability adjustment	—			(14,419		)	—			—			—			(14,419		)
Loss on modification or
extinguishment of debt	—			(21,364		)	—			—			—			(21,364		)
Intercompany administrative income	—			17,341			—			—			(17,341		)	—
Income (loss) before equity in
subsidiaries' income (loss)	—			(43,235		)	18,839			(10,330		)	—			(34,726		)
Equity in subsidiaries' income (loss)	(18,793		)	24,442			—			—			(5,649		)	—
Income (loss) before provision (benefit)
for income taxes	(18,793		)	(18,793		)	18,839			(10,330		)	(5,649		)	(34,726		)
Provision (benefit) for income taxes	—			—			(21,134		)	5,201			—			(15,933		)
Net income (loss)	$	(18,793	)	$	(18,793	)	$	39,973		$	(15,531	)	$	(5,649	)	$	(18,793	)
Other comprehensive income (loss):
Foreign currency translation adjustments	—			—			—			(5,366		)	—			(5,366		)
Unrealized loss on derivative instrument	—			—			—			(47		)	—			(47		)
Total comprehensive income (loss)	$	(18,793	)	$	(18,793	)	$	39,973		$	(20,944	)	$	(5,649	)	$	(24,206	)

37

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
As of October 3, 2015
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
ASSETS	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
Current Assets:
Cash and cash equivalents	$	—		$	36,695		$	(11,258	)	$	17,841		$	—		$	43,278
Accounts receivable, net	—			—			236,079			31,916			—			267,995
Inventories:
Raw materials	—			—			69,630			6,037			—			75,667
Work in process	—			—			20,312			1,807			—			22,119
Finished goods	—			—			51,233			16,154			—			67,387
Total inventory	—			—			141,175			23,998			—			165,173
Prepaid expenses and other
current assets	—			952			22,153			4,939			—			28,044
Deferred income taxes	—			—			8,542			—			—			8,542
Total current assets	—			37,647			396,691			78,694			—			513,032
Investments in subsidiaries	(80,770		)	(184,858		)	—			—			265,628			—
Property and Equipment, at cost:
Land	—			—			7,387			777			—			8,164
Buildings and improvements	—			—			61,295			4,633			—			65,928
Machinery and equipment	—			3,394			353,604			17,184			—			374,182
	—			3,394			422,286			22,594			—			448,274
Less accumulated depreciation	—			(1,658		)	(281,738		)	(8,861		)	—			(292,257		)
Total property and equipment, net	—			1,736			140,548			13,733			—			156,017
Other Assets:
Intangible assets, net	—			—			117,203			18,153			—			135,356
Goodwill	—			—			449,492			29,838			—			479,330
Intercompany note receivable	—			1,104,510			—			—			(1,104,510		)	—
Other	—			23,804			3,601			—			—			27,405
Total other assets	—			1,128,314			570,296			47,991			(1,104,510		)	642,091
	$	(80,770	)	$	982,839		$	1,107,535		$	140,418		$	(838,882	)	$	1,311,140
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	—		$	159		$	77,261		$	15,958		$	—		$	93,378
Accrued expenses	—			13,371			118,239			19,133			—			150,743
Current portion of long-term debt	—			4,300			—			—			—			4,300
Total current liabilities	—			17,830			195,500			35,091			—			248,421
Deferred income taxes	—			—			14,941			5,364			—			20,305
Intercompany note payable	—						998,056			106,454			(1,104,510		)	—
Payable to related parties pursuant to
tax receivable agreement	—			24,384			—			—			—			24,384
Other long-term liabilities	—			8,033			73,494			3,911			—			85,438
Long-term debt, less current portion	—			1,013,362			—			—			—			1,013,362
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	—			—			—			—			—			—
Common stock	681			681			—			—			(681		)	681
Additional paid-in-capital	748,965			748,965			437,178			21,521			(1,207,664		)	748,965
(Accumulated deficit) retained earnings	(799,288		)	(799,288		)	(597,096		)	(21,142		)	1,417,526			(799,288		)
Accumulated other
comprehensive loss	(31,128		)	(31,128		)	(14,538		)	(10,781		)	56,447			(31,128		)
Total stockholders' (deficit) equity	(80,770		)	(80,770		)	(174,456		)	(10,402		)	265,628			(80,770		)
	$	(80,770	)	$	982,839		$	1,107,535		$	140,418		$	(838,882	)	$	1,311,140

38

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2014
	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—		$	23,555		$	(5,845	)	$	15,452		$	—		$	33,162
Accounts receivable, net	—			—			153,791			33,888			—			187,679
Inventories:
Raw materials	—			—			65,772			10,695			—			76,467
Work in process	—			—			32,653			1,725			—			34,378
Finished goods	—			—			54,415			14,653			—			69,068
Total inventory	—			—			152,840			27,073			—			179,913
Prepaid expenses and other
current assets	—			1,044			25,840			4,924			—			31,808
Deferred income taxes	—			—			7,680			—			—			7,680
Total current assets	—			24,599			334,306			81,337			—			440,242
Investments in subsidiaries	(96,668		)	(64,046		)	—			—			160,714			—
Property and Equipment, at cost:
Land	—			—			7,085			882			—			7,967
Buildings and improvements	—			—			60,211			5,447			—			65,658
Machinery and equipment	—			2,794			348,951			16,974			—			368,719
	—			2,794			416,247			23,303			—			442,344
Less accumulated depreciation	—			(2,083		)	(271,156		)	(8,138		)	—			(281,377		)
Total property and equipment, net	—			711			145,091			15,165			—			160,967
Other Assets:
Intangible assets, net	—			—			123,333			24,376			—			147,709
Goodwill	—			—			442,233			33,879			—			476,112
Intercompany note receivable	—			953,510			—			—			(953,510		)	—
Other	—			26,784			2,761			—			—			29,545
Total other assets	—			980,294			568,327			58,255			(953,510		)	653,366
	$	(96,668	)	$	941,558		$	1,047,724		$	154,757		$	(792,796	)	$	1,254,575
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	—		$	239		$	66,452		$	17,473		$	—		$	84,164
Accrued expenses	—			19,907			110,290			17,128			—			147,325
Current portion of long-term debt	—			4,300			—			—			—			4,300
Total current liabilities	—			24,446			176,742			34,601			—			235,789
Deferred income taxes	—			—			14,719			6,087			—			20,806
Intercompany note payable	—			—			844,258			109,252			(953,510		)	—
Payable to related parties pursuant to
tax receivable agreement	—			10,917			—			—			—			10,917
Other long-term liabilities	—			13,946			76,923			3,945			—			94,814
Long-term debt	—			988,917			—			—			—			988,917
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	—			—			—			—			—			—
Common stock	679			679			—			—			(679		)	679
Additional paid-in-capital	745,140			745,140			602,801			16,010			(1,363,951		)	745,140
(Accumulated deficit) retained earnings	(822,512		)	(822,512		)	(653,181		)	(9,701		)	1,485,394			(822,512		)
Accumulated other
comprehensive income (loss)	(19,975		)	(19,975		)	(14,538		)	(5,437		)	39,950			(19,975		)
Total stockholders' (deficit) equity	(96,668		)	(96,668		)	(64,918		)	872			160,714			(96,668		)
	$	(96,668	)	$	941,558		$	1,047,724		$	154,757		$	(792,796	)	$	1,254,575

39

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the nine months ended October 3, 2015
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	23,224		$	23,224		$	56,085		$	(11,441	)	$	(67,868	)	$	23,224
Adjustments to reconcile net income (loss)
to cash provided by (used in) operating activities:
Depreciation and amortization expense	—			250			38,703			5,355			—			44,308
Fair-value premium on purchased inventory	—			—			54			—			—			54
Non-cash restructuring costs	—			—			—			805			—			805
Non-cash interest expense, net	—			9,988			—			—			—			9,988
Loss on foreign currency transactions	—			—			—			2,101			—			2,101
Non-cash litigation expense	—			—			(3,210		)	—			—			(3,210		)
Stock based compensation	—			1,642			—			—			—			1,642
Deferred income taxes	—			—			(4,328		)	—			—			(4,328		)
Tax receivable agreement liability adjustment	—			13,467			—			—			—			13,467
Reduction in tax uncertainty,
net of valuation allowance	—			—			(501		)	—			—			(501		)
Equity in subsidiaries' net income (loss)	(23,224		)	(44,644		)	—			—			67,868			—
Other	—			—			(67		)	—			—			(67		)
Changes in operating assets and liabilities:
Accounts receivable, net	—			—			(74,649		)	(2,201		)	—			(76,850		)
Inventories	—			—			15,487			(147		)	—			15,340
Prepaid expenses and other assets	—			825			6,780			(680		)	—			6,925
Accounts payable	—			(80		)	9,075			(586		)	—			8,409
Accrued expenses	—			(12,522		)	14,664			(4,918		)	—			(2,776		)
Cash payments on restructuring liabilities	—			—			(201		)	(1,561		)	—			(1,762		)
Other	—			(14		)	(990		)	—			—			(1,004		)
Net cash provided by (used in)
operating activities	—			(7,864		)	56,902			(13,273		)	—			35,765
Cash flows from investing activities:
Acquisitions	—			—			(21,000		)	—			—			(21,000		)
Capital expenditures	—			(1,186		)	(16,836		)	(2,266		)	—			(20,288		)
Proceeds from sale of assets	—			—			88			18			—			106
Net cash used in
investing activities	—			(1,186		)	(37,748		)	(2,248		)	—			(41,182		)
Cash flows from financing activities:
Net revolver borrowings	—			20,000			—			—			—			20,000
Payments on long-term debt	—			(3,225		)	—			—			—			(3,225		)
Proceeds from exercises of employee stock options	—			2,201			—			—			—			2,201
Proceeds from intercompany
investment	—			3,214			(24,567		)	21,353			—			—
Net cash provided by (used in)
financing activities	—			22,190			(24,567		)	21,353			—			18,976
Impact of exchange rate movements on cash	—			—			—			(3,443		)	—			(3,443		)
Net increase (decrease) in cash
and cash equivalents	—			13,140			(5,413		)	2,389			—			10,116
Cash and cash equivalents at the
beginning of the period	—			23,555			(5,845		)	15,452			—			33,162
Cash and cash equivalents at the end
of the period	$	—		$	36,695		$	(11,258	)	$	17,841		$	—		$	43,278

40

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the nine months ended September 27, 2014
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(18,793	)	$	(18,793	)	$	39,973		$	(15,531	)	$	(5,649	)	$	(18,793	)
Adjustments to reconcile net income (loss)
to cash used in operating activities:
Depreciation and amortization expense	—			486			27,239			6,191			—			33,916
Fair-value premium on purchased inventory	—			—			38			—			—			38
Fair-value decrease of contingent acquisition liability	—			—			(264		)	—			—			(264		)
Non-cash restructuring expense	—			—			—			3,012			—			3,012
Non-cash interest expense, net	—			11,606			—			—			—			11,606
Loss on foreign currency transactions	—			—			—			517			—			517
Non-cash litigation expense	—			—			4,593			—			—			4,593
Loss on modification or extinguishment of debt	—			21,364			—			—			—			21,364
Stock based compensation	—			1,672			—			—			—			1,672
Deferred income taxes	—			—			(22,227		)	5,032			—			(17,195		)
Tax receivable agreement liability adjustment	—			14,419			—			—			—			14,419
Increase in tax uncertainty,
net of valuation allowance	—			—			254			—			—			254
Equity in subsidiaries' net loss	18,793			(24,442		)	—			—			5,649			—
Other	—			—			(50		)	(174		)	—			(224		)
Changes in operating assets and liabilities:
Accounts receivable, net	—			—			(81,439		)	(21,289		)	—			(102,728		)
Inventories	—			—			(17,394		)	(6,680		)	—			(24,074		)
Prepaid expenses and other assets	—			189			2,673			(255		)	—			2,607
Accounts payable	—			(60		)	5,873			9,367			—			15,180
Accrued expenses	—			(18,259		)	11,865			4,926			—			(1,468		)
Cash payments on restructuring liabilities	—			—			(577		)	(3,835		)	—			(4,412		)
Other	—			2			(1,997		)	6,566			—			4,571
Net cash used in
operating activities	—			(11,816		)	(31,440		)	(12,153		)	—			(55,409		)
Cash flows from investing activities:
Acquisitions, net of cash acquired	—			(130,856		)	—			—			—			(130,856		)
Capital expenditures	—			(1,075		)	(11,907		)	(1,542		)	—			(14,524		)
Proceeds from sale of assets	—			—			109			635			—			744
Net cash used in
investing activities	—			(131,931		)	(11,798		)	(907		)	—			(144,636		)
Cash flows from financing activities:
Proceeds from long-term debt	—			1,067,725			—			—			—			1,067,725
Net revolver borrowings	—			20,000			—			—			—			20,000
Payments on long-term debt	—			(853,075		)	—			—			—			(853,075		)
Payment of tender and early call premiums	—			(61,142		)	—			—			—			(61,142		)
Proceeds from intercompany
investment	—			(59,762		)	44,781			14,981			—			—
Proceeds from exercises of employee stock options	—			1,073			—			—			—			1,073
Debt issuance costs paid	—			(16,721		)	—			—			—			(16,721		)
Net cash provided by
financing activities	—			98,098			44,781			14,981			—			157,860
Impact of exchange rate movement
on cash	—			—			—			(834		)	—			(834		)
Net increase (decrease) in cash
and cash equivalents	—			(45,649		)	1,543			1,087			—			(43,019		)
Cash and cash equivalents at the
beginning of the period	—			57,800			(4,970		)	16,971			—			69,801
Cash and cash equivalents at the end
of the period	$	—		$	12,151		$	(3,427	)	$	18,058		$	—		$	26,782

41

Item 2.   MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The information contained in this discussion and in the unaudited condensed consolidated financial statements and accompanying notes presented in this Quarterly Report on Form 10-Q should be read in conjunction with information set forth in Ply Gem Holdings’ Annual Report on Form 10-K for the year ended December 31, 2014.  Certain statements in this “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are “forward-looking statements”.  See “Special Note Regarding Forward-Looking Statements.”  As used in this Quarterly Report on Form 10-Q, the “Company”, “we”, “us”, and “our” refer to Ply Gem Holdings and its subsidiaries, except where the context otherwise requires or as otherwise indicated.

Overview

We are a leading manufacturer of exterior building products in North America, operating in two reportable segments: (i) Siding, Fencing and Stone and (ii) Windows and Doors, which comprised approximately 48% and 52% of our net sales, respectively, for the three months ended October 3, 2015.  These two segments produce a comprehensive product line of vinyl siding, designer accents, cellular PVC trim, vinyl fencing, vinyl railing, stone veneer, roofing, and vinyl windows and doors used in both the new construction market and the home repair and remodeling market in the United States and Canada.  Vinyl building products have the leading share of sales volume in siding and windows in the United States.  We also manufacture vinyl and aluminum soffit and siding accessories, aluminum trim coil, wood windows, aluminum windows, vinyl and aluminum-clad windows and steel and fiberglass doors, enabling us to bundle complementary and color-matched products and accessories with our core products.  We believe that our comprehensive product portfolio and geographically diverse, low cost manufacturing platform allow us to better serve our customers and provide us with a competitive advantage over other exterior building products suppliers.  

Since Ply Gem incorporated in 2004, we have acquired ten additional businesses to complement and expand our product portfolio and geographic diversity, including one acquisition during 2014 and one during 2015.  On September 19, 2014, we acquired all of the issued and outstanding shares of common stock of Fortune Brands Windows, Inc. ("Simonton"), a manufacturer of windows, for a purchase price of $130.0 million. On May 29, 2015, we acquired substantially all of the assets of Canyon Stone, Inc. (“Canyon Stone”), a manufacturer of stone veneer, for a purchase price of $21.0 million. Simonton is included in our Windows and Doors segment while Canyon Stone is included in our Siding, Fencing, and Stone segment.

Prior to January 11, 2010, Ply Gem Holdings was a wholly owned subsidiary of Ply Gem Investment Holdings, which was a wholly owned subsidiary of Ply Gem Prime.  On January 11, 2010, Ply Gem Investment Holdings was merged with and into Ply Gem Prime, with Ply Gem Prime being the surviving corporation.  In May 2013, the Company issued 18,157,895 shares of common stock at an initial public offering price of $21.00 per share and received gross proceeds of approximately $381.3 million in an IPO of its common stock. The shares began trading on The New York Stock Exchange on May 23, 2013 under the symbol "PGEM". Immediately prior to the closing of the IPO, Ply Gem Prime merged with and into Ply Gem Holdings, with Ply Gem Holdings being the surviving entity. In the merger, all of the preferred stock of Ply Gem Prime (including the subordinated debt of Ply Gem Prime that was converted into preferred stock in connection with the IPO) was converted into a number of shares of the Company's common stock based on the IPO price of the common stock and the liquidation value of and the maximum dividend amount in respect of the preferred stock.

We are a holding company with no operations or assets of our own other than the capital stock of our subsidiaries. The terms of Ply Gem Industries' $350.0 million ABL Facility and the credit agreement governing the terms of its $430.0 million Term Loan Facility place restrictions on the ability of Ply Gem Industries and our other subsidiaries to pay dividends and otherwise transfer assets to us.  Further, the terms of the indenture governing Ply Gem Industries' $650.0 million 6.50% Senior Notes place restrictions on the ability of Ply Gem Industries and our other subsidiaries to pay dividends and otherwise transfer assets to us.

Financial statement presentation

Net Sales.  Net sales represent the fixed selling price of our products plus certain shipping charges less applicable provisions for discounts and allowances.  Allowances include cash discounts, volume rebates and returns.

Cost of products sold.  Cost of products sold includes direct material and manufacturing costs, manufacturing depreciation, third-party and in-house delivery costs and product warranty expense.

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Selling, general and administrative expenses.  Selling, general and administrative expenses (“SG&A expense”) includes all non-product related operating expenses, including selling, marketing, research and development costs, information technology, and other general and administrative expenses.

Operating earnings (loss).  Operating earnings (loss) represents net sales less cost of products sold, SG&A expense and amortization of intangible assets.

Impact of commodity pricing

PVC resin and aluminum are major components in the production of our products and changes in PVC resin and aluminum prices have a direct impact on our cost of products sold.  Historically, we have been able to pass on a substantial portion of significant price increases to our customers.  The results of operations for individual quarters can be negatively impacted by a delay between the time of raw material cost increases and price increases that we implement in our products, or conversely can be positively impacted by a delay between the time of a raw material price decrease and competitive pricing moves that we implement accordingly.

Impact of weather

Since our building products are intended for exterior use, our sales and operating earnings tend to be lower during periods of inclement weather.  Weather conditions in the first and fourth quarters of each calendar year historically result in these quarters producing significantly less sales revenue than in any other period of the year.  As a result, we have historically had lower profits or higher losses in the first quarter, and reduced profits in the fourth quarter of each calendar year due to the weather.  Our results of operations for individual quarters in the future may be impacted by adverse weather conditions. In addition, favorable or unfavorable weather conditions may influence the comparability of our results from year to year or from quarter to quarter.

Critical Accounting Policies

Our discussion and analysis of financial condition and results of operations are based upon our condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States, or GAAP.  The preparation of our financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent liabilities.  We base these estimates on our historical experience and on various other assumptions that we believe to be reasonable under the circumstances, and these estimates form the basis for our judgments concerning the carrying values of assets and liabilities that are not readily apparent from other sources.  By their nature, these estimates and judgments are subject to an inherent degree of uncertainty.  We periodically evaluate these estimates and judgments based on available information and experience.  Actual results could differ from our estimates under different assumptions and conditions.  If actual results significantly differ from our estimates, our financial condition and results of operations could be materially impacted.  For more information regarding our critical accounting policies and estimates please refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies contained in our Annual Report on Form 10-K for the year ended December 31, 2014 and Note 1 to our condensed consolidated financial statements. There have been no material changes to the critical accounting policies previously disclosed in that report.

Results of Operations

The following table summarizes net sales and operating earnings (loss) by segment and is derived from the accompanying condensed consolidated statements of operations and comprehensive income (loss) included in this report.

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	For the three months ended						For the nine months ended
(Amounts in thousands)	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net sales
Siding, Fencing and Stone	$	255,069		$	244,416		$	650,084		$	609,419
Windows and Doors	275,815			193,432			759,182			507,105
Operating earnings (loss)
Siding, Fencing and Stone	51,122			44,756			106,118			89,484
Windows and Doors	18,798			3,773			11,960			(17,793		)
Unallocated	(7,919		)	(6,602		)	(24,463		)	(18,116		)
Foreign currency loss
Siding, Fencing and Stone	(531		)	(352		)	(792		)	(278		)
Windows and Doors	(538		)	(414		)	(1,309		)	(239		)
Interest income (expense), net
Siding, Fencing and Stone	11			7			19			13
Windows and Doors	9			6			17			15
Unallocated	(18,839		)	(16,295		)	(56,621		)	(52,029		)
Income tax (provision) benefit
Unallocated	(2,114		)	10,514			1,762			15,933
Tax Receivable Agreement liability adjustment
Unallocated	1,712			(13,988		)	(13,467		)	(14,419		)
Loss on modification or
extinguishment of debt
Unallocated	—			—			—			(21,364		)
Net income (loss)	$	41,711		$	21,405		$	23,224		$	(18,793	)

Our business is seasonal and the results of operations for the periods presented are not necessarily indicative of the results for a full fiscal year or any future period.

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This review of performance is organized by business segment, reflecting the way we manage our business.  Each business group leader is responsible for operating results down to operating earnings.  We use operating earnings as a performance measure as it captures the income and expenses within the management control of our business leaders.  Corporate management is responsible for making all financing decisions.  Therefore, each segment discussion focuses on the factors affecting operating earnings, while interest expense and income taxes and certain other unallocated expenses are separately discussed at the corporate level.

The following tables set forth our results of operations based on the amounts and the percentage relationship of the items listed to net sales for the periods indicated.  However, our results of operations set forth in the tables below may not necessarily be representative of our future operating results.

Siding, Fencing and Stone Segment

	For the three months ended
(Amounts in thousands)	October 3, 2015					September 27, 2014
	(unaudited)					(unaudited)
Statement of operations data:
Net sales	$	255,069		100.0	%	$	244,416		100.0	%
Gross profit	77,388			30.3	%	68,587			28.1	%
SG&A expense	22,934			9.0	%	20,543			8.4	%
Amortization of intangible assets	3,332			1.3	%	3,288			1.3	%
Operating earnings	51,122			20.0	%	44,756			18.3	%
Currency transaction loss	(531		)	(0.2	)%	(352		)	(0.1	)%

Net Sales

Net sales for the three months ended October 3, 2015 increased $10.7 million or 4.4% as compared to the three months ended September 27, 2014. The net sales increase for the three months ended October 3, 2015 was due in part to our acquisition of Canyon Stone, which was completed on May 29, 2015, and accounted for increased net sales of $7.8 million during the three months ended October 3, 2015. Excluding Canyon Stone, our Siding, Fencing, and Stone net sales increased $2.9 million or 1.2% for the three months ended October 3, 2015. The net sales increase resulted primarily from higher net sales in the United States of approximately $8.6 million partially offset by lower net sales in Canada of approximately $5.7 million. The U.S. net sales increase was driven by higher net sales of our vinyl siding and injection molded products that resulted from new business wins as well as improved market conditions. In addition, we achieved $2.8 million of higher PVC trim sales during the three months ended October 3, 2015 relative to the three months ended September 27, 2014 as this new product continues to gain traction in the marketplace after its introduction in 2013.

For the three months ended October 3, 2015 and September 27, 2014, the percentage of net sales in vinyl siding and metal accessories represented approximately 59.5% and 24.4% and 61.9% and 25.3%, respectively, with net sales of other products comprising approximately 16.1% and 12.8%, respectively. The 330 basis point increase in other product sales resulted directly from the Canyon Stone acquisition which specializes in the manufactured stone product category.

As previously discussed, the U.S. new construction housing market has demonstrated measured improvement, while according to the U.S. Census Bureau single family housing starts ("SFHS") increased 12.5% during the second quarter of 2015 relative to the second quarter of 2014. Our building products are typically installed on a new construction residential home 90 to 120 days after the start of the home, therefore the single family housing starts in the preceding three-month period directly impacts the demand for our products in the current three month period. Although the overall national growth rate for SFHS in the 2015 second quarter was 12.5%, SFHS in the core geographical markets for vinyl siding of the Northeast and Midwest were flat and down 2.3% respectively, which impacted demand for our vinyl siding products during the three months ended October 3, 2015. During the third quarter of 2015, the residential remodeling market conditions demonstrated improvement as, according to the Leading Indicator of Remodeling Activity Index (“LIRA”), the 2015 third quarter trailing twelve months increased by 2.4% compared to the prior year period.

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The improving residential remodeling market conditions and the net sales growth of our product categories, were partially offset by depressed market conditions in Canada where the weakening Canadian dollar negatively impacted our net sales by approximately $5.5 million during the three months ended October 3, 2015 compared to the three months ended September 27, 2014. During the three months ended October 3, 2015, the Canadian dollar weakened 20.5% relative to the three months ended September 27, 2014. Excluding the negative foreign currency impact, our net sales in Canada would have decreased a nominal $0.3 million during the three months ended October 3, 2015 relative to the three months ended September 27, 2014.

Gross Profit

Gross profit for the three months ended October 3, 2015 increased $8.8 million or 12.8% as compared to the three months ended September 27, 2014. Excluding the impact of the Canyon Stone acquisition, which was completed on May 29, 2015 and contributed increased gross profit of approximately $2.3 million, our gross profit increased $6.5 million or 9.5% during the three months ended October 3, 2015. The gross profit increase during the three months ended October 3, 2015 resulted predominantly from favorable raw material cost pricing relative to the three months ended September 27, 2014 specifically for PVC resin and aluminum. PVC resin and the Midwest Ingot price of aluminum decreased approximately 4.8% and 27.7%, respectively, during the three months ended October 3, 2015 relative to the three months ended September 27, 2014. This favorable material cost pricing increased gross profit by approximately $9.6 million partially offset by unfavorable product mix of approximately $2.0 million. In addition, our freight expense on a volume adjusted basis was favorable by approximately $1.8 million as a result of declining fuel prices.

As a percentage of net sales, gross profit increased from 28.1% for the three months ended September 27, 2014 to 30.3% for the three months ended October 3, 2015. Excluding Canyon Stone, our gross profit was 30.4% for the three months ended October 3, 2015. This 230 basis point increase for the three months ended October 3, 2015 resulted primarily from favorable material cost pricing and favorable freight expense partially offset by the negative impact of the Canadian dollar weakening against the U.S. dollar.

Selling, general and administrative expenses

SG&A expense for the three months ended October 3, 2015 increased $2.4 million or 11.6% as compared to the three months ended September 27, 2014. Excluding $1.3 million of SG&A expense for Canyon Stone, our SG&A expense increased $1.1 million or 5.3% which resulted from increased incentive compensation for the three months ended October 3, 2015 relative to the three months ended September 27, 2014. As a percentage of net sales, SG&A expense increased from 8.4% to 8.7% excluding Canyon Stone as a result of the increased incentive compensation expenses for the three months ended October 3, 2015.

Amortization of intangible assets

Amortization expense for the three months ended October 3, 2015 was materially consistent with the prior year period. As a percentage of net sales, amortization expense was consistent at 1.3% for the three months ended October 3, 2015 compared to 1.3% for the three months ended September 27, 2014.

Currency transaction loss

The currency transaction loss for the three months ended October 3, 2015 was $0.5 million resulting from the impact of the Canadian dollar devaluation. The currency transaction loss for the three months ended September 27, 2014 was $0.4 million resulting from the fluctuation in the Canadian dollar during the period.

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	For the nine months ended
(Amounts in thousands)	October 3, 2015					September 27, 2014
	(unaudited)					(unaudited)
Statement of operations data:
Net sales	$	650,084		100.0	%	$	609,419		100.0	%
Gross profit	182,859			28.1	%	160,894			26.4	%
SG&A expense	67,141			10.3	%	61,487			10.1	%
Amortization of intangible assets	9,600			1.5	%	9,923			1.6	%
Operating earnings	106,118			16.3	%	89,484			14.7	%
Currency transaction loss	(792		)	(0.1	)%	(278		)	—	%

Net Sales

Net sales for the nine months ended October 3, 2015 increased $40.7 million or 6.7% as compared to the nine months ended September 27, 2014. Excluding net sales of $10.8 million attributed to the Canyon Stone acquisition which was completed on May 29, 2015, our net sales increased $29.9 million or 4.9% during the nine months ended October 3, 2015. The net sales increase resulted predominantly from higher net sales in the United States of approximately $38.5 million partially offset by lower net sales in Canada of approximately $8.6 million. The U.S. net sales increased resulted primarily from improved market conditions reflected in industry metrics. Our building products typically are installed on a new construction residential home 90 to 120 days after the start of the home, therefore the single family housing starts in the preceding three-month period directly impacts the demand for our products in the current period. According to the U.S. Census Bureau single family housing starts increased 8.7% during the nine months ended in the second quarter of 2015 relative to the comparable prior year period. According to the LIRA, remodeling activity summarized by homeowner improvements increased 4.3% during the nine months ended October 3, 2015 compared to the nine months ended September 27, 2014. These improved U.S. industry conditions resulted in increased net sales of approximately $25.7 million for our combined vinyl siding, metal accessory, and PVC trim products. We experienced increased PVC trim net sales during the nine months ended October 3, 2015 relative to the nine months ended September 27, 2014 as this new product continues to gain traction in the marketplace after its introduction in 2013, while the vinyl siding and metal accessory increases resulted predominantly from new business wins and improving industry conditions. Sales of our vinyl siding products increased $10.8 million in the U.S. partially offset by a Canadian vinyl siding net sales decrease of $6.9 million which resulted from the weakening of the Canadian dollar relative to the U.S. dollar.

For the nine months ended October 3, 2015 and September 27, 2014, the percentage of net sales in vinyl siding and metal accessories represented approximately 60.7% and 24.4% and 62.6% and 24.0%, respectively, with our net sales of other products comprising approximately 14.9% and 13.4%. The net sales increase in other products resulted from the Canyon Stone acquisition which specializes in the manufactured stone category. Also contributing to the net sales increase for the nine months ended October 3, 2015 was higher selling prices relative to the nine months ended September 27, 2014 of 1.1% which equated to increased net sales of $5.8 million. Finally, our net sales for the nine months ended October 3, 2015 were positively impacted by the timing of the Company’s fiscal calendar which provided four additional shipping days during the first nine months of 2015 relative to the first nine months of 2014.

The improved U.S. market conditions which accounted for the majority of the 4.9% net sales increase during the nine months ended October 3, 2015 are further evidenced by the Vinyl Siding Institute reporting that U.S. vinyl siding industry shipments increased 0.7% during the nine months ended October 3, 2015 while shipments in Canada decreased 1.9% for the nine months ended September 27, 2014. Including Mitten, our U.S. market position in vinyl siding for the nine months ended October 3, 2015 and September 27, 2014 was 38.5% and 38.7%, respectively, while our combined share of the Canadian vinyl siding market was 29.8% and 27.1%, respectively. The improved U.S. market conditions were partially offset by declining industry conditions in Canada where the deteriorating Canadian dollar negatively impacted our net sales by approximately $22.3 million during the nine months ended October 3, 2015. Excluding the negative foreign currency impact, our net sales in Canada through Mitten would have increased $2.4 million despite weakness in the Canadian economy. During the nine months ended October 3, 2015 the Canadian dollar deteriorated 15.2% relative to the nine months ended September 27, 2014.

Gross Profit

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Gross profit for the nine months ended October 3, 2015 increased $22.0 million or 13.7% as compared to the nine months ended September 27, 2014. Excluding the impact of the Canyon Stone acquisition, which was completed on May 29, 2015 and contributed increased gross profit of approximately $3.1 million, our gross profit increased $18.9 million or 11.7%. The gross profit increase resulted from the 4.9% net sales increase resulting from improved market and weather conditions in the United States partially offset by the weakening Canadian dollar. The higher volumes experienced during the nine months ended October 3, 2015 enabled us to increase our operating leverage and cover fixed manufacturing costs relative to the lower volumes experienced during the nine months ended September 27, 2014. This operating leverage combined with increased average selling prices, lower freight expenses, and favorable material cost pricing during the nine months ended October 3, 2015 relative to the nine months ended September 27, 2014 improved our gross profit. For material costs, PVC resin decreased 3.0% during the nine months ended October 3, 2015 relative to the nine months ended September 27, 2014. The Midwest Ingot price of aluminum decreased 10.1% during the nine months ended October 3, 2015 relative to the nine months ended September 27, 2014. This favorable material cost pricing increased gross profit by approximately $13.1 million during the nine months ended October 3, 2015 relative to the nine months ended September 27, 2014. In addition, our freight expense on a volume adjusted basis was favorable by approximately $3.5 million as a result of declining oil prices.

As a percentage of net sales, gross profit increased from 26.4% for the nine months ended September 27, 2014 to 28.1% for the nine months ended October 3, 2015 excluding the impact of Canyon Stone. The 170 basis point increase for the nine months ended October 3, 2015 resulted from improved operating leverage from the 4.9% net sales increase as well as improved selling prices, favorable material cost pricing, and favorable freight expense.

Selling, general and administrative expenses

SG&A expense for the nine months ended October 3, 2015 increased $5.7 million or 9.2% as compared to the nine months ended September 27, 2014. Excluding the Canyon Stone acquisition, which was completed on May 29, 2015 and incurred SG&A expenses of $1.8 million, SG&A expense increased $3.9 million or 6.3% during the nine months ended October 3, 2015 as compared to the nine months ended September 27, 2014. The SG&A expense increase was predominantly caused by higher incentive compensation of $2.5 million and increased sales and marketing expenses of $1.1 million related to the 4.9% net sales increase during the nine months ended October 3, 2015 relative to the nine months ended September 27, 2014. As a percentage of net sales excluding Canyon Stone, SG&A expense remained consistent at approximately 10.2% during the nine months ended October 3, 2015 as compared to 10.1% for the nine months ended September 27, 2014.

Amortization of intangible assets

Amortization expense for the nine months ended October 3, 2015 decreased by $0.3 million or 3.3% during the nine months ended October 3, 2015 as compared to the nine months ended September 27, 2014. The amortization expense decrease resulted from the negative 15.2% movement in the Canadian dollar relative to the U.S. dollar during the nine months ended October 3, 2015 which resulted in lower amortization expense in Canada of approximately $0.5 million partially offset by increased amortization expense from the Canyon Stone acquisition. As a percentage of net sales, amortization expense was 1.4% for the nine months ended October 3, 2015 excluding Canyon Stone as compared to 1.6% for the nine months ended September 27, 2014 resulting from the negative Canadian dollar exchange rate movement during the nine months ended October 3, 2015.

Currency transaction loss

The currency transaction loss for the nine months ended October 3, 2015 was $0.8 million resulting from the impact of the Canadian dollar devaluation. The currency transaction loss for the nine months ended September 27, 2014 was $0.3 million.

Windows and Doors Segment

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	For the three months ended
(Amounts in thousands)	October 3, 2015					September 27, 2014
	(unaudited)					(unaudited)
Statement of operations data:
Net sales	$	275,815		100.0	%	$	193,432		100.0	%
Gross profit	57,393			20.8	%	30,002			15.5	%
SG&A expense	35,505			12.9	%	24,210			12.5	%
Amortization of intangible assets	3,090			1.1	%	2,019			1.0	%
Operating earnings	18,798			6.8	%	3,773			2.0	%
Currency transaction loss	(538		)	(0.2	)%	(414		)	(0.2	)%

Net Sales

Net sales for the three months ended October 3, 2015 increased $82.4 million or 42.6% as compared to the three months ended September 27, 2014. The net sales increase for the three months ended October 3, 2015 was primarily related to our Simonton acquisition, which was completed on September 19, 2014, and accounted for increased net sales of $81.9 million during the three months ended October 3, 2015. Excluding Simonton, our Windows and Doors’ net sales increased $0.5 million or 0.2% for the three months ended October 3, 2015 relative to the three months ended September 27, 2014. The net sales increase resulted from higher net sales in the United States for our U.S. window products of approximately $17.6 million offset by lower net sales for our Western Canadian business of approximately $17.1 million. The U.S. net sales increase resulted from improved market conditions reflected in industry metrics. According to the U.S. Census Bureau single family housing starts increased by 12.5% during the second quarter of 2015 relative to the second quarter of 2014. Our building products are typically installed on a new construction residential home 90 to 120 days after the start of the home, therefore the single family housing starts in the preceding three-month period directly impacts the demand for our products in the current three month period and the geographical footprint of those starts has less of an impact than our Siding, Fencing, and Stone segment. In addition to the improved industry conditions in the United States, our Windows and Doors selling prices increased for our window products from price increases that we have implemented and favorable product mix that resulted from a higher proportion of our window sales being derived from our vinyl windows which typically carry a higher selling price than our aluminum windows. The impact of higher selling prices that resulted from our price increases and favorable product mix is estimated to have increased our average selling price for our U.S. window products by 8.0% which contributed higher net sales of approximately $11.1 million for the three months ended October 3, 2015.

These increases in the U.S. market were offset by a 36.8% decrease in net sales in our Western Canadian business during the three months ended October 3, 2015 compared to the three months ended September 27, 2014. The housing market conditions within the prairie provinces of Western Canada, in which a majority of our Western Canadian business’ net sales are generated, has experienced demand softness due to declining world oil prices on this heavily dependent energy industrial area. The weakening of the Canadian dollar also negatively impacted our net sales by approximately $5.9 million during the three months ended October 3, 2015 compared to the three months ended September 27, 2014. During the three months ended October 3, 2015, the Canadian dollar deteriorated 20.5% relative to the three months ended September 27, 2014.

Gross Profit

Gross profit for the three months ended October 3, 2015 increased $27.4 million or 91.3% as compared to the three months ended September 27, 2014. Our gross profit was favorably impacted by the Simonton acquisition, which was completed on September 19, 2014 and contributed increased gross profit of approximately $23.7 million during the three months ended October 3, 2015. Adjusting for the Simonton acquisition, our gross profit for the three months ended October 3, 2015 increased approximately $3.6 million or 12.9%. This gross profit increase can be attributed to the continued improvement in our U.S. windows business, which was driven by improved net pricing and favorable product mix that resulted in an 8.0% increase in average selling price during the three months ended October 3, 2015. Overall, our gross profit increased approximately $7.5 million for our U.S. windows business but decreased approximately $3.7 million for our Western Canadian business during the three months ended October 3, 2015 compared to the three months ended September 27, 2014. The decrease in our Canadian gross profit is largely attributed to the negative impact of foreign currency resulting from the weakening of the Canadian dollar as well as a softening in the Western Canadian market.

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As a percentage of net sales, gross profit increased from 15.5% for the three months ended September 27, 2014 to 20.8% for the three months ended October 3, 2015. Excluding the impact of Simonton, gross profit increased from 15.1% for the three months ended September 27, 2014 to 17.1% for the three months ended October 3, 2015. The 200 basis point gross profit increase was driven by a 330 basis point improvement in U.S. windows gross profit performance resulting from improved net pricing and operational efficiencies while Western Canada incurred a 10 basis point decrease that resulted from lower operating leverage and the negative impact of the weakening Canadian dollar.

Selling, general and administrative expenses

SG&A expense for the three months ended October 3, 2015 increased $11.3 million or 46.7% compared to the three months ended September 27, 2014. The SG&A expense increase relates to the Simonton acquisition, which was completed on September 19, 2014 and contributed $16.2 million of increased SG&A expense for the three months ended October 3, 2015. Excluding Simonton, our Windows and Doors’ SG&A expense decreased $4.9 million or 21.2%. The decrease in SG&A expense resulted from $2.6 million lower SG&A expense for Western Canada from the reduction of $0.9 million of one-time restructuring and integration costs related to the integration of our Western Canadian businesses that occurred during the three months ended September 27, 2014 and variable expense reductions taken by management in response to lower market demand resulting from recessionary market conditions in Western Canada and the weakening of the Canadian dollar. In addition to Western Canada, our Windows and Doors’ SG&A expense decreased by $2.3 million due to reduced legal expenses as compared to the prior year associated with the resolution of our previously disclosed Windows and Doors class action litigation, partially offset by increased incentive compensation expense during the three months ended October 3, 2015.

Excluding Simonton, SG&A expense as a percentage of net sales decreased from 12.3% for the three months ended September 27, 2014 to 9.7% for the three months ended October 3, 2015. The reduction in legal expenses accounted for 170 basis points of the decrease with the remainder due to the lower SG&A expense with respect to sales and marketing expenses for Western Canada for the three months ended October 3, 2015 as compared to the three months ended September 27, 2014.

Amortization of intangible assets

Amortization expense for the three months ended October 3, 2015 increased $1.1 million or 53.0% compared to the three months ended September 27, 2014. The increase in amortization expense for the three months ended October 3, 2015 was due to the additional intangible assets acquired in the Simonton acquisition completed on September 19, 2014. As a percentage of net sales, amortization expense remained consistent at 1.0% after excluding the impact of the Simonton acquisition for the three months ended October 3, 2015 compared to the three months ended September 27, 2014.

Currency transaction loss

The currency transaction loss of approximately $0.5 million for the three months ended October 3, 2015 increased approximately $0.1 million or 30.0% due to the 20.5% weakening of the Canadian dollar relative to the U.S. dollar during the three months ended October 3, 2015 as compared to the three months ended September 27, 2014.

	For the nine months ended
(Amounts in thousands)	October 3, 2015					September 27, 2014
	(unaudited)					(unaudited)
Statement of operations data:
Net sales	$	759,182		100.0	%	$	507,105		100.0	%
Gross profit	136,946			18.0	%	64,913			12.8	%
SG&A expense	115,682			15.2	%	76,788			15.1	%
Amortization of intangible assets	9,304			1.2	%	5,918			1.2	%
Operating earnings (loss)	11,960			1.6	%	(17,793		)	(3.5	)%
Currency transaction loss	(1,309		)	(0.2	)%	(239		)	—	%

Net Sales

50

Net sales for the nine months ended October 3, 2015 increased $252.1 million or 49.7% compared to the nine months ended September 27, 2014. The net sales increase for the nine months ended October 3, 2015 was predominantly related to our Simonton acquisition, which was completed on September 19, 2014, and accounted for increased net sales of $231.9 million during the nine months ended October 3, 2015. Excluding Simonton, our Windows and Doors’ net sales increased $20.2 million or 4.0% during the nine months ended October 3, 2015 compared to the nine months ended September 27, 2014. The net sales increase resulted from higher net sales in the United States for our U.S. window products of approximately $47.9 million partially offset by lower net sales for our Western Canadian business of approximately $27.7 million. The U.S. net sales increase resulted from improved market conditions reflected in industry metrics. According to the U.S. Census Bureau single family housing starts increased by 8.7% during the nine months ended during second quarter of 2015 relative to the second quarter of 2014. Our building products are typically installed on a new construction residential home 90 to 120 days after the start of the home, therefore the single family housing starts in the preceding three-month period directly impacts the demand for our products in the current period. In addition to the improved industry conditions in the United States, our Windows and Doors selling prices increased for our window products from price increases that we have implemented and favorable product mix that resulted from a higher proportion of our window sales being derived from our vinyl windows which typically carry a higher selling price than our aluminum windows. The impact of higher selling prices that resulted from our price increases and favorable product mix is estimated to have increased our average selling price for our U.S. window products by 6.2% which contributed higher net sales of approximately $23.9 million for the nine months ended October 3, 2015. Furthermore, our net sales for the nine months ended October 3, 2015 were positively impacted by the timing of the Company’s fiscal calendar which provided four additional shipping days for the nine months ended October 3, 2015 relative to the nine months ended September 27, 2014.

These increase in the U.S. market were partially offset by a 23.7% decrease in net sales in our Western Canadian business during the nine months ended October 3, 2015 compared to the nine months ended September 27, 2014. The housing market conditions within the prairie provinces of Western Canada, in which a majority of our Western Canadian business’ net sales are generated, has experienced demand softness due to declining world oil prices on this heavily dependent energy industrial area. In addition, the weakening of the Canadian dollar negatively impacted our net sales by approximately $23.3 million during the nine months ended October 3, 2015 compared to the nine months ended September 27, 2014. During the nine months ended October 3, 2015, the Canadian dollar weakened 15.2% against the U.S. dollar relative to the nine months ended September 27, 2014.

Gross Profit

Gross profit for the nine months ended October 3, 2015 increased $72.0 million or 111.0% as compared to the nine months ended September 27, 2014. Our gross profit was favorably impacted by the Simonton acquisition, which was completed on September 19, 2014 and contributed increased gross profit of approximately $60.1 million for the nine months ended October 3, 2015. Adjusting for the Simonton acquisition, our gross profit for the nine months ended October 3, 2015 increased by approximately $12.0 million or 19.0%. This gross profit increase can be attributed to the continued improvement in our U.S. windows business, which was driven by improved net pricing and favorable product mix that resulted in a 6.2% increase in average selling price during the nine months ended October 3, 2015. In addition to the average sales price improvement, we have improved our operational efficiencies as a result of our “enterprise lean” initiative which continues to streamline our window product offering by providing additional manufacturing flexibility as well as our improved sales and operations planning process that is intended to provide better resource planning which will help to minimize ramp up costs that result from spikes in demand within a geographical area. Overall, our gross profit increased approximately $17.6 million for our U.S. windows business but decreased approximately $5.5 million for our Western Canadian business during the nine months ended October 3, 2015 compared to the nine months ended September 27, 2014. The decrease in our Canadian gross profit is largely attributed to the negative impact of foreign currency resulting from the weakening of the Canadian dollar as well as a softening in the Western Canadian market.

As a percentage of net sales, gross profit increased from 12.8% for the nine months ended September 27, 2014 to 18.0% for the nine months ended October 3, 2015. Excluding the impact of Simonton, gross profit increased from 12.6% for the nine months ended September 27, 2014 to 14.4% for the nine months ended October 3, 2015. The 180 basis point increase in gross profit was driven by a 290 basis point improvement in U.S. windows gross profit performance resulting from improved net pricing and operational efficiencies while Western Canada incurred a 40 basis point decrease from lower volumes which decreased operating leverage during the nine months ended October 3, 2015.

Selling, general and administrative expenses

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SG&A expense for the nine months ended October 3, 2015 increased $38.9 million or 50.7% compared to the nine months ended September 27, 2014. The SG&A expense increase relates to the Simonton acquisition, which was completed on September 19, 2014 and contributed increased SG&A expense of $50.3 million for the nine months ended October 3, 2015. Excluding Simonton, our Windows and Doors SG&A expense decreased $11.4 million or 15.1%. This SG&A expense decrease was predominantly related to a $5.0 million expense recognized in connection with a settlement of class action lawsuits during the nine months ended September 27, 2014. In addition, SG&A expenses for Western Canada decreased $4.7 million as a result of the weakening Canadian dollar and from the elimination of $1.2 million of one-time restructuring and integration costs related to the integration of our Western Canadian businesses that occurred during the nine months ended September 27, 2014 and $1.4 million lower sales and marketing expenses based on the lower sales volume. The remaining decrease in SG&A expense is attributable to reduced legal expenses as compared to the prior year associated with the resolution of the class action lawsuits partially offset by increased incentive compensation expense in the U.S. for the nine months ended October 3, 2015.

Excluding Simonton and the impact of the class action litigation, SG&A expense as a percentage of net sales decreased from 14.1% for the nine months ended September 27, 2014 to 12.9% for the nine months ended October 3, 2015. The decrease can be attributed to $1.2 million lower restructuring and integration costs for Western Canada as well as gaining leverage on the fixed component of SG&A expense with the additional sales volume in the U.S. and the lower legal expenses based on the resolution of certain cases.

Amortization of intangible assets

Amortization expense for the nine months ended October 3, 2015 increased $3.4 million or 57.2% compared to the nine months ended September 27, 2014. The increase in amortization expense for the nine months ended October 3, 2015 was due to the additional intangible assets acquired in the Simonton acquisition that was completed on September 19, 2014. As a percentage of net sales, amortization expense remained consistent at 1.1% for the nine months ended October 3, 2015 after excluding the impact of the Simonton acquisition for the nine months ended October 3, 2015 compared to 1.2% for the nine months ended September 27, 2014.

Currency transaction loss

The currency transaction loss of approximately $1.3 million for the nine months ended October 3, 2015 increased approximately $1.1 million or 447.7% due to the 15.2% weakening of the Canadian dollar relative to the U.S. dollar during the nine months ended October 3, 2015 as compared to the nine months ended September 27, 2014.

Combined quarterly profitability and seasonality trend

During the three months ended October 3, 2015, the Company’s gross profit margin increased to 25.4% of net sales compared to 22.5% for the three months ended September 27, 2014. Excluding the impact of the Simonton acquisition, which was completed on September 19, 2014 and contributed increased gross profit of $23.7 million and the Canyon Stone acquisition, which was completed on May 29, 2015, and contributed gross profit of $2.3 million, our comparable gross profit margins would have been 24.6% for the three months ended October 3, 2015 and 22.5% for the three months ended September 27, 2014. This 210 basis point increase can be attributed to improved operating performance of our Windows and Doors segment specifically our U.S. Windows business which earned increased gross profit of $7.5 million from improved selling prices of approximately 8.0% partially offset by challenges within Western Canada whose results were negatively impacted by a weakening Canadian dollar and a softening Canadian housing market. Our Siding, Fencing, and Stone segment also contributed to the improved gross profit margins achieving a gross profit increase, excluding Canyon Stone, of $6.5 million during the three months ended October 3, 2015 resulting from favorable material cost pricing and increased average selling prices, and lower freight expense.

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SG&A expense as a percentage of net sales was 12.5% for the three months ended October 3, 2015 as compared to 11.7% for the three months ended September 27, 2014. Excluding the impact of the Simonton and Canyon Stone acquisitions, our SG&A expense as a percentage of net sales for the three months ended October 3, 2015 decreased 10.9% as a result of the lower SG&A expense for Western Canada based on the deterioration of the Canadian dollar as well as the elimination of approximately $0.9 million of restructuring and integration expenses associated with combining our Western Canadian manufacturing facilities. SG&A expense also decreased as a result of reduced legal expenses as compared to the prior year associated with the resolution of the class action litigation, partially offset by increased incentive compensation expense. Simonton’s SG&A expenses are typically higher as percentage of net sales as its core business focuses on the repair and remodeling market and while this distribution network typically carries a higher gross profit margin it also requires increased marketing and other related SG&A expense compared to our existing U.S. Windows business which currently focuses on the new construction market.

To further clarify the trends in SG&A expenses for the Company as whole, Western Canada and Mitten’s SG&A expenses were also higher as a percentage of sales at approximately 20.6% and 17.6%, respectively, compared to the Company's overall SG&A expense of 12.5% for the three months ended October 3, 2015, indicating that the remaining SG&A expense excluding Simonton, Western Canada, and Mitten would be approximately 9.8% for the Company’s other businesses as a percentage of net sales for the three months ended October 3, 2015. Western Canada and Mitten operate and sell primarily in Canada and own their distribution centers across their respective regions in Eastern and Western Canada, which increases their respective SG&A expense while allowing them to service their Canadian customer base across a broad geographical area.

Overall, our key performance metrics and trends have improved relative to the prior year comparable period and continued our seasonal trend with strong operating performance during the second and third quarters of our fiscal year. The positive trend in our 2015 operating performance continued during the three months ended October 3, 2015 with continued gross profit margin expansion from improved market conditions, improved product mix, improved average selling prices, favorable freight expenses, and favorable material costs partially offset by the negative impact from the weakening of the Canadian dollar relative to the U.S. dollar. Our results for the three and nine months ended October 3, 2015 include the results of Simonton which were excluded from the comparable 2014 periods since the acquisition was completed in September 2014. Our results for the three and nine months ended October 3, 2015 also include the results of Canyon Stone which results were excluded from the comparable 2014 periods since the acquisition was completed in May 2015.

Unallocated Operating Earnings, Interest, and Provision (Benefit) for Income Taxes

	For the three months ended
(Amounts in thousands)	October 3, 2015			September 27, 2014
	(unaudited)			(unaudited)
Statement of operations data:
SG&A expense	$	(7,919	)	$	(6,602	)
Operating loss	(7,919		)	(6,602		)
Interest expense	(18,840		)	(16,296		)
Interest income	1			1
Tax receivable agreement liability adjustment	1,712			(13,988		)
Income tax (provision) benefit for income taxes	$	(2,114	)	$	10,514

Operating loss

Unallocated losses include items which are not directly attributed to or allocated to either of our reporting segments.  Such items include legal costs, corporate payroll, and unallocated finance and accounting expenses.  The unallocated operating loss for the three months ended October 3, 2015 increased by $1.3 million or 19.9% compared to the same period in 2014 due primarily to increased incentive compensation of approximately $1.4 million, increased executive retention expense of $0.1 million, offset by decreases in other professional fees and various other personnel expenses.

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Interest expense

Interest expense for the three months ended October 3, 2015 increased by approximately $2.5 million or 15.6% compared to the same period in 2014 as a result of the additional $150.0 million debt incurred for the Simonton acquisition completed in September 2014. The increased interest expense relates to the $150.0 million in 6.50% Senior Notes issued in September 2014 ("Senior Tack-on Notes") being outstanding during the three months ended October 3, 2015 and not during the full three months ended September 27, 2014.

Tax receivable agreement ("TRA") liability adjustment

As a result of the Company’s full tax valuation allowance position, the Company’s methodology for calculating the TRA liability considers expectations regarding (i) current year taxable income only (due to the uncertainty of future taxable income associated with the Company’s cumulative loss position) and (ii) future income due to the expected reversals of deferred tax liabilities. During the three months ended October 3, 2015, the Company estimated its projected taxable income for the full year ending December 31, 2015 based on the Company’s 2015 estimates. However, the Company’s methodology to estimate the TRA liability excludes forecasts for fiscal years subsequent to 2015 because such future forecasts and projections cannot be relied upon based on the negative evidence from the Company’s three year cumulative loss position. For fiscal year 2015, the Company estimated to be in a taxable income position; however, this taxable income estimate was not sufficient to outweigh the negative evidence or alleviate the Company’s three year cumulative loss position. In addition to projecting the Company’s current year taxable income estimate, the Company considered the reversals of deferred tax assets and deferred tax liabilities. The resulting taxable income (loss) from deferred taxes was then combined with the Company’s current year taxable income estimate to determine the cumulative NOLs that are expected to be utilized in 2015 and the TRA liability was accordingly adjusted using the 85% TRA rate.

The $1.7 million decrease for the TRA liability for the three months ended October 3, 2015 resulted from decreases in taxable income estimates resulting from reversing deferred tax liabilities as well as decreases in the Company’s 2015 estimate for taxable income. The decrease in the Company’s 2015 estimated taxable income resulted from the industry lowering their projections of SFHS for 2015 by 1.3% during the three months ended October 3, 2015 compared to the three months ended July 4, 2015 which lowered the Company’s forecasts and estimates for 2015 taxable income and decreased the TRA liability accordingly.

Income taxes

Income tax expense for the three months ended October 3, 2015 increased by approximately $12.6 million compared to the same period in 2014.  Our pre-tax income for the three months ended October 3, 2015 was approximately $43.8 million including the $1.7 million tax receivable agreement liability adjustment compared to pre-tax income of $10.9 million for the three months ended September 27, 2014.  For the three months ended October 3, 2015, the increase in income taxes resulted primarily from the impact of the Simonton purchase accounting adjustments as well as a combination of income and losses from our operating units and pre-tax losses in some entities for which no tax benefit was recognized.

	For the nine months ended
(Amounts in thousands)	October 3, 2015			September 27, 2014
	(unaudited)			(unaudited)
Statement of operations data:
SG&A expense	$	(24,463	)	$	(18,116	)
Operating loss	(24,463		)	(18,116		)
Interest expense	(56,624		)	(52,033		)
Interest income	3			4
Loss on modification or extinguishment of debt	—			(21,364		)
Tax receivable agreement liability adjustment	(13,467		)	(14,419		)
Income tax benefit for income taxes	$	1,762		$	15,933

Operating loss

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Unallocated losses include items which are not directly attributed to or allocated to either of our reporting segments.  Such items include legal costs, corporate payroll, and unallocated finance and accounting expenses.  The unallocated operating loss for the nine months ended October 3, 2015 increased by $6.3 million or 35.0% compared to the same period in 2014 due primarily to increased incentive compensation of approximately $2.9 million, increased executive retention expense of $0.4 million, increased professional fees of approximately $1.2 million, and various other personnel expenses.

Interest expense

Interest expense for the nine months ended October 3, 2015 increased by approximately $4.6 million or 8.8% compared to the same period in 2014 as a result of the additional $150.0 million debt incurred for the Simonton acquisition completed in September 2014 partially offset by the January 2014 debt refinancing.  The increase is primarily due to the $150.0 million in Senior Tack-on Notes being outstanding during the nine months ended October 3, 2015 and not during the nine months ended September 27, 2014 period. The 6.50% Senior Notes due 2022 (the "6.50% Senior Notes") and the Term Loan Facility due 2021 (the "Term Loan Facility"), which were issued and entered into on January 30, 2014 to replace the 8.25% Senior Secured Notes due 2018 (the "8.25% Senior Secured Notes") and 9.375% Senior Notes due 2017 (the "9.375% Senior Notes"), carry lower interest rates on a weighted average basis of approximately 300 basis points and consequently reduced interest expense during the nine months ended October 3, 2015 compared to the same period in 2014.

Tax receivable agreement liability adjustment

As a result of the Company’s full tax valuation allowance position, the Company’s methodology for calculating the TRA liability considers expectations regarding (i) current year taxable income only (due to the uncertainty of future taxable income associated with the Company’s cumulative loss position) and (ii) future income due to the expected reversals of deferred tax liabilities. During the nine months ended October 3, 2015, the Company estimated its projected taxable income for the full year ending December 31, 2015 based on the Company’s 2015 estimates. However, the Company’s methodology to estimate the TRA liability excludes forecasts for fiscal years subsequent to 2015 because such future forecasts and projections cannot be relied upon based on the negative evidence from the Company’s three year cumulative loss position. For fiscal year 2015, the Company estimated to be in a taxable income position; however, this taxable income estimate was not sufficient to outweigh the negative evidence or alleviate the Company’s three year cumulative loss position. In addition to projecting the Company’s current year taxable income estimate, the Company considered the reversals of deferred tax assets and deferred tax liabilities. The resulting taxable income (loss) from deferred taxes was then combined with the Company’s current year taxable income estimate to determine the cumulative NOLs that are expected to be utilized in 2015 and the TRA liability was accordingly adjusted using the 85% TRA rate.

The $13.5 million TRA liability adjustment for the nine months ended October 3, 2015 resulted from increases in taxable income estimates resulting from reversing deferred tax liabilities as well as increases in the Company’s 2015 estimate for operating income compared to the 2014 period. The increase in the Company’s 2015 estimated taxable income can be attributed to the following factors noted in the first nine months of 2015 (i) the continued U.S. housing recovery which is estimated to have a 14.4% year over year increase in single family housing starts according to the U.S. Census Bureau, (ii) improvements in the repair and remodeling market evidenced by the 4.3% increase in homeowner improvements during the first nine months of 2015 versus the first nine months of 2014 according to LIRA, (iii) the positive income contributions from the Company’s acquisition of Simonton which was completed in September 2014, and (iv) continued improvements in the Company’s existing operations specifically for our U.S. Windows business which increased its operating earnings by approximately $15.5 million during the nine months ended October 3, 2015 compared to the nine months ended September 27, 2014. All of these items increased the Company’s taxable income estimate for the year ending December 31, 2015 and hence our estimate of the TRA liability for the nine months ended October 3, 2015.

Loss on modification or extinguishment of debt

As a result of the 6.50% Senior Notes issuance and our entering into the Term Loan Facility and the tender, redemption, and repurchase of the 8.25% Senior Notes and the 9.375% Senior Secured Notes as further described in the Liquidity and Capital Resources section below, we recognized a loss on modification or extinguishment of debt of approximately $21.4 million during the nine months ended September 27, 2014.

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Income taxes

The income tax benefit for the nine months ended October 3, 2015 decreased by approximately $14.2 million compared to the same period in 2014.  Our pre-tax income for the nine months ended October 3, 2015 was approximately $21.5 million including the $13.5 million tax receivable agreement liability adjustment compared to a pre-tax loss of $34.7 million for the nine months ended September 27, 2014.  For the nine months ended October 3, 2015, the decrease in income tax benefit resulted primarily from the combination of income and losses from our operating units and pre-tax losses in some entities for which no tax benefit was recognized. Additionally, the results for the nine months ended September 27, 2014 included the tax benefit related to the Simonton acquisition and the assumption of their deferred tax liabilities which resulted in a reversal of $25.0 million of the Company's valuation allowance.

Liquidity and Capital Resources

During the nine months endedOctober 3, 2015, cash increased by approximately $10.1 million compared to a decrease of approximately $43.0 million during the nine months endedSeptember 27, 2014.  The decrease in cash used during the comparative nine month period was driven by a $40.0 million improvement in operating earnings period over period which resulted in a $58.5 million increase in working capital during the nine months endedOctober 3, 2015 relative to the nine months ended September 27, 2014. Accounts receivable improved by $25.9 million and inventory improved by $39.4 million during the nine months endedOctober 3, 2015 compared to nine months endedSeptember 27, 2014.

One of the largest changes in operating cash flows during the nine months endedOctober 3, 2015 was the movement in the accounts receivable balance. The approximate $80.3 million increase in accounts receivable from December 31, 2014 to October 3, 2015 can be attributed to the seasonality of our business. Net sales in the final month of each respective quarter drove this increase as aging profiles were relatively consistent. Net sales for September 2015 were approximately $203.4 million, versus approximately $144.2 million for December 2014, for an increase of $59.2 million. The improvement in September’s net sales reflects the Company’s normal seasonal business as the weather in September is generally improved compared to December, which allows for further construction activity, increasing the Company’s sales with a corresponding increase in accounts receivable.

Our business is seasonal because inclement weather during the winter months typically reduces the level of building and remodeling activity in both the home repair and remodeling and new home construction sectors, especially in the Northeast and Midwest regions of the United States and Canada.  As a result, our liquidity typically increases during the second and third quarters as our ABL Facility borrowing base increases, reaching a peak early in the fourth quarter, and decreases late in the fourth quarter and throughout the first quarter.

Our primary cash needs are for working capital, capital expenditures, and debt service.  As of October 3, 2015, our annual cash interest charges for debt service for the year ending December 31, 2015, including the ABL Facility, is estimated to be approximately $61.4 million.  We do not have any scheduled debt maturities until 2020.  The specific debt instruments and their corresponding terms and due dates are described in the following sections.  Our capital expenditures have historically been approximately 1.5% to 2.0% of net sales on an annual basis.  Historically, we have been able to manage our capital expenditures based on market conditions for the new construction and repair and remodeling markets during any given fiscal year. As of October 3, 2015, our purchase commitments for inventory are approximately $16.8 million.  We finance these cash requirements, including payments under the Tax Receivable Agreement through internally generated cash flow and funds borrowed under the ABL Facility.

Our outstanding indebtedness will mature in 2020 (ABL Facility), 2021 (Term Loan Facility), and 2022 (6.50% Senior Notes).  Although we expect to refinance or pay off such indebtedness, we may not be successful in refinancing, extending the maturity or otherwise amending the terms of such indebtedness because of market conditions, disruptions in the debt markets, our financial performance or other reasons. Furthermore, the terms of any refinancing, extension or amendment may not be as favorable as the current terms of our indebtedness. If we are not successful in refinancing our indebtedness or extending its maturity, we and our subsidiaries could face substantial liquidity problems and may be forced to reduce or delay capital expenditures, sell assets, seek additional capital or restructure our indebtedness.

Our specific cash flow movement for the nine months endedOctober 3, 2015 and September 27, 2014 is summarized below:

Cash used in operating activities

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Net cash provided by operating activities for the nine months endedOctober 3, 2015 was approximately $35.8 million as compared to approximately $55.4 million used in operations for the nine months endedSeptember 27, 2014. The net cash provided by (used in) operating activities was impacted by the increase in operating earnings of approximately $40.0 million which was driven by improved operating performance for our U.S. windows business of approximately $29.8 million and $16.6 million operating earnings improvement in the Siding, Fencing and Stone segment. In addition to the improvement in operating earnings, the Company also had improved working capital metrics during the nine months ended October 3, 2015 relative to the nine months ended September 27, 2014 of approximately $65.3 million related to improved accounts receivable and inventory as we experienced improved collection rates on receivables and managed our seasonal inventory build more effectively.

Cash used in investing activities

Net cash used in investing activities for the nine months endedOctober 3, 2015 and September 27, 2014 was approximately $41.2 million and $144.6 million, respectively, primarily used for capital expenditures on various ongoing capital projects and a $21.0 million acquisition for Canyon Stone in 2015 and a $130.0 million acquisition for Simonton in 2014. Capital expenditures for 2015 were higher than 2014 but were relatively consistent as a percentage of net sales at 1.4% for 2015 and 1.3% for 2014, which is comparably to our historical average of 1.5% to 2.0%.

Cash provided by financing activities

Net cash provided by financing activities for the nine months endedOctober 3, 2015 was approximately $19.0 million, primarily from net revolver borrowings of $20.0 million. Net cash provided by financing activities for the nine months endedSeptember 27, 2014 was approximately $157.9 million, primarily from net revolver borrowings of $20.0 million and the issuance of an additional $150.0 million in 6.50% Senior Notes. The long term debt refinancing in the nine months ended September 27, 2014 that occurred in January 2014 was essentially cash neutral after considering the final debt structure and related premiums/discounts with proceeds of $927.9 million offset by debt payments on the 8.25% Senior Secured Notes and 9.375% Senior Notes of $852.0 million, $61.1 million of tender/call premiums, and $14.6 million of debt issuance costs. The issuance of an additional $150.0 million in 6.50% Senior Notes in the nine months ended September 27, 2014 resulted in net proceeds of approximately $138.0 million after deducting $10.1 million for the debt discount and approximately $1.9 million in transaction costs incurred.

Our specific debt instruments and terms are described below:

2014 Debt Transactions

On January 30, 2014, Ply Gem Industries completed an offering of $500.0 million aggregate principal amount of 6.50% Senior Notes due 2022 (the “6.50% Senior Notes”) and also entered into a $430.0 million senior secured term loan facility due 2021 (the “Term Loan Facility”). The approximate $927.9 million of net proceeds from the issuance of the 6.50% Senior Notes and the borrowings under the Term Loan Facility were used by Ply Gem Industries to purchase all of its 8.25% Senior Secured Notes due 2018 (the "8.25% Senior Secured Notes") and 9.375% Senior Notes due 2017 (the "9.375% Senior Notes") tendered in the tender offers described below, to satisfy and discharge the remaining obligations under the indentures governing the 8.25% Senior Secured Notes and 9.375% Senior Notes and to pay related fees and expenses.

On January 30, 2014, Ply Gem Industries purchased approximately $705.9 million of the outstanding 8.25% Senior Secured Notes in a tender offer at a price of $1,067.50 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. On January 30, 2014, Ply Gem Industries also purchased approximately $94.7 million of the outstanding 9.375% Senior Notes in a tender offer at a price of $1,108.36 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. As a result, Ply Gem Industries paid aggregate consideration of approximately $780.2 million for the tendered 8.25% Senior Secured Notes, including a tender premium of approximately $47.6 million, and paid aggregate consideration of approximately $107.6 million for the tendered 9.375% Senior Notes, including a tender premium of approximately $10.3 million.

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On March 1, 2014, pursuant to the terms of the indenture governing the 8.25% Senior Secured Notes, Ply Gem Industries redeemed the remaining approximate $50.1 million principal amount of the outstanding 8.25% Senior Secured Notes at a redemption price equal to 106.188% of the principal amount thereof, plus accrued and unpaid interest. On February 16, 2014, pursuant to the terms of the indenture governing the 9.375% Senior Notes, Ply Gem Industries redeemed the remaining approximate $1.3 million principal amount of the outstanding 9.375% Senior Notes at a redemption price equal to 100% of the principal amount plus the “make-whole” premium required under the indenture governing the 9.375% Senior Notes (which equated to 110.179% of the principal amount thereof), plus accrued and unpaid interest. As of March 1, 2014, there were no longer outstanding any 8.25% Senior Secured Notes. As of February 16, 2014, there were no longer outstanding any 9.375% Senior Notes.

On September 19, 2014, Ply Gem Industries issued an additional $150.0 million aggregate principal amount of its 6.50% Senior Notes (“Senior Tack-on Notes”).  The net proceeds from the transaction were approximately $138.0 million after deducting $10.1 million for the debt discount and $1.9 million in transaction costs. The proceeds from the issuance of the Senior Tack-on Notes and approximately $3.1 million of cash on hand were used by Ply Gem Industries to fund Ply Gem Industries’ purchase of all the issued and outstanding shares of common stock of Simonton, to pay fees and expenses related to the offering of the Senior Tack-on Notes and the Simonton acquisition and for general corporate purposes, including the repayment of approximately $10.0 million of indebtedness under the Company’s senior secured asset-backed revolving credit facility (the "ABL Facility"). The additional $150.0 million of 6.50% Senior Tack-on Notes have the same terms and covenants as the original $500.0 million of 6.50% Senior Notes due 2022. The 6.50% Senior Notes originally issued in January 2014 and the Senior Tack-on Notes issued in September 2014 (collectively, the "6.50% Senior Notes") will mature on February 1, 2022 and bear interest at the rate of 6.50%.

In November 2014, the Company exercised a portion of the accordion feature under the ABL Facility for $50.0 million, or 50% of the eligible accordion, increasing the ABL Facility from $250.0 million to $300.0 million to account for the additional borrowing base acquired from Simonton.

6.50% Senior Notes due 2022

On January 30, 2014, Ply Gem Industries issued $500.0 million of 6.50% Senior Notes at par. On September 19, 2014, Ply Gem Industries issued an additional $150.0 million of 6.50% Senior Notes at a discount of approximately $10.1 million. Interest accrues at 6.50% per annum and is paid semi-annually on February 1 and August 1 of each year. The 6.50% Senior Notes will mature on February 1, 2022.

Prior to February 1, 2017, Ply Gem Industries may redeem up to 40% of aggregate principal amount of the 6.50% Senior Notes with the net cash proceeds from certain equity offerings at a redemption price equal to 106.50% of the aggregate principal amount of the 6.50% Senior Notes to be redeemed, plus accrued and unpaid interest, if any, provided that at least 50% of the aggregate principal amount of the 6.50% Senior Notes remains outstanding after the redemption. Prior to February 1, 2017, Ply Gem Industries may redeem the 6.50% Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a “make-whole” premium plus accrued and unpaid interest, if any. At any time on or after February 1, 2017, Ply Gem Industries may redeem the 6.50% Senior Notes, in whole or in part, at declining redemption prices set forth in the indenture governing the 6.50% Senior Notes plus, in each case, accrued and unpaid interest, if any, to the redemption date. The effective interest rate for the 6.50% Senior Notes is 8.48% after considering each of the different interest expense components of this instrument, including the coupon payment and the deferred debt issuance costs.

The 6.50% Senior Notes are fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis by Ply Gem Holdings and all of the wholly-owned domestic subsidiaries of Ply Gem Industries (the “Guarantors”).  The indenture governing the 6.50% Senior Notes contains certain covenants that limit the ability of Ply Gem Industries and its restricted subsidiaries to incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem their stock, make loans and investments, sell assets, incur certain liens, enter into agreements restricting their ability to pay dividends, enter into transactions with affiliates, and consolidate, merge or sell assets.  In particular, Ply Gem Industries and its restricted subsidiaries may not incur additional debt (other than permitted debt (as defined in the indenture) in limited circumstances) unless, after giving effect to such incurrence, the consolidated interest coverage ratio of Ply Gem Industries would be at least 2.00 to 1.00.  

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In the absence of satisfying the consolidated interest coverage ratio test, Ply Gem Industries and its restricted subsidiaries may only incur additional debt under certain circumstances, including, but not limited to, debt under credit facilities (as defined in the indenture) (x) in an amount not to exceed the greater of (a) $350.0 million and (b) the borrowing base (as defined in the indenture) and (y) in an amount not to exceed the greater of (A) $575.0 million and (B) the aggregate amount of indebtedness (as defined in the indenture) that that would cause the consolidated secured debt ratio (as defined in the indenture) to be equal to 4.00 to 1.00; purchase money indebtedness in an aggregate amount not to exceed the greater of (x) $35.0 million and (y) 10% of consolidated net tangible assets (as defined in the indenture) at any one time outstanding; debt of foreign subsidiaries in an aggregate amount not to exceed the greater of (x) $60.0 million and (y) 15% of consolidated net tangible assets (as defined in the indenture) at any one time outstanding; debt pursuant to a general basket in an aggregate amount at any one time outstanding not to exceed the greater of (x) $75.0 million and (y) 20% of consolidated net tangible assets; and the refinancing of debt under certain circumstances.

On September 5, 2014, Ply Gem Industries completed an exchange offer with respect to the 6.50% Senior Notes issued in January 2014 to exchange $500.0 million 6.50% Senior Notes registered under the Securities Act for $500.0 million of the issued and outstanding 6.50% Senior Notes. Upon completion of the exchange offer, all $500.0 million of issued and outstanding 6.50% Senior Notes were registered under the Securities Act.  On January 23, 2015, Ply Gem Industries completed an exchange offer with respect to the Senior Tack-on Notes issued in September 2014 to exchange $150.0 million Senior Tack-on Notes registered under the Securities Act for $150.0 million of the issued and outstanding Senior Tack-on Notes. Upon completion of the exchange offer, all $150.0 million of issued and outstanding Senior Tack-on Notes were registered under the Securities Act. 

Term Loan Facility due 2021

On January 30, 2014, Ply Gem Industries entered into a credit agreement governing the terms of its new $430.0 million Term Loan Facility. Ply Gem Industries borrowed $430.0 million under the Term Loan Facility on January 30, 2014, with an original discount of approximately $2.2 million, yielding proceeds of approximately $427.9 million. The Term Loan Facility will mature on January 30, 2021. The Term Loan Facility requires scheduled quarterly payments in an aggregate annual amount equal to 1.00% of the original aggregate principal amount of the Term Loan Facility with the balance due at maturity. Interest on outstanding borrowings under the Term Loan Facility are paid quarterly.

Borrowings under the Term Loan Facility bear interest at a rate equal to, at Ply Gem Industries’ option, either (a) a base rate determined by reference to the highest of (i) the prime rate of the administrative agent under the credit agreement, (ii) the federal funds rate plus 0.50% and (iii) the adjusted LIBO rate for a one-month interest period plus 1.00% or (b) a LIBO rate determined by reference to the cost of funds for eurocurrency deposits in dollars for the interest period relevant to such borrowing, adjusted for certain additional costs, subject to a 1.00% floor, plus, in each case, an applicable margin of 3.00% for any eurocurrency loan and 2.00% for any alternate base rate loan. As of October 3, 2015, the Company's interest rate on the Term Loan Facility was 4.00%. The effective interest rate for the Term Loan is 7.00% after considering each of the different interest expense components of this instrument, including the coupon payment, the deferred debt issuance costs and the original issue discount.

The Term Loan Facility allows Ply Gem Industries to request one or more incremental term loan facilities in an aggregate amount not to exceed the greater of (x) $140.0 million and (y) an amount such that Ply Gem Industries’ consolidated senior secured debt ratio (as defined in the credit agreement), on a pro forma basis, does not exceed 3.75 to 1.00, in each case, subject to certain conditions and receipt of commitments by existing or additional financial institutions or institutional lenders. Ply Gem Industries may voluntarily repay outstanding loans under the Term Loan Facility at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR loans.

The Term Loan Facility requires Ply Gem Industries to prepay outstanding term loans, subject to certain exceptions, with: (i) 50% (which percentage will be reduced to 25% if our consolidated senior secured debt ratio is equal or less than 2.50 to 1.00 but greater than 2.00 to 1.00 and to 0% if our consolidated senior secured debt ratio is equal to or less than 2.00 to 1.00) of our annual excess cash flow (as defined in the credit agreement), to the extent such excess cash flow exceeds $15.0 million, commencing with the fiscal year ending December 31, 2015; (ii) 100% of the net cash proceeds of certain non-ordinary course asset sales or certain insurance and condemnation proceeds, in each case subject to certain exceptions and reinvestment rights; and (iii) 100% of the net cash proceeds of certain issuances of debt, other than proceeds from debt permitted under the Term Loan Facility.

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The Term Loan Facility is secured on a first-priority lien basis by the stock of Ply Gem Industries and by substantially all of the assets (other than the assets securing the obligations under the ABL Facility, which primarily consist of accounts receivable, inventory, cash, deposit accounts, securities accounts, chattel paper, contract rights, instruments, documents related thereto and proceeds of the foregoing) of Ply Gem Industries and the Guarantors that are subsidiaries of Ply Gem Industries and on a second-priority lien basis by the assets that secure the ABL Facility.

The Term Loan Facility includes negative covenants, subject to certain exceptions, that are substantially the same as the negative covenants in the 6.50% Senior Notes and also does not contain any restrictive financial covenants. The Term Loan Facility also restricts the ability of Ply Gem Industries’ subsidiaries to enter into agreements restricting their ability to grant liens to secure the Term Loan Facility and contains a restriction on changes in fiscal year.

8.25% Senior Secured Notes due 2018

On February 11, 2011, Ply Gem Industries issued $800.0 million of 8.25% Senior Secured Notes at par.  Ply Gem Industries used the proceeds to purchase approximately $724.6 million principal amount of its outstanding 11.75% Senior Secured Notes in a tender offer, to redeem the remaining approximate $0.4 million principal amount of outstanding 11.75% Senior Secured Notes, and to pay related fees and expenses.  A portion of the early tender premiums and the original unamortized discount on the 11.75% Senior Secured Notes was recorded as a discount on the $800.0 million of 8.25% Senior Secured Notes given that the 2011 transaction was predominately accounted for as a loan modification.  On February 15, 2012, Ply Gem Industries issued an additional $40.0 million principal amount of its 8.25% Senior Secured Notes. The 8.25% Senior Secured Notes would have matured on February 15, 2018 and bore interest at the rate of 8.25% per annum.   Interest was paid semi-annually on February 15 and August 15 of each year. The 8.25% Senior Secured Notes were fully and unconditionally and jointly and severally guaranteed on a senior secured basis by the Guarantors. The 8.25% Senior Secured Notes and the related guarantees were secured on a first-priority lien basis by substantially all of the assets (other than the assets securing our obligations under the ABL Facility, which consist of accounts receivable, inventory, cash, deposit accounts, securities accounts, chattel paper and proceeds of the foregoing and certain assets such as contract rights, instruments and documents related thereto) of Ply Gem Industries and the Guarantors and on a second-priority lien basis by the assets that secure the ABL Facility.

On January 30, 2014, Ply Gem Industries purchased approximately $705.9 million of its outstanding 8.25% Senior Secured Notes in a tender offer at a price of $1,067.50 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. On January 30, 2014, Ply Gem Industries irrevocably deposited with the trustee for the 8.25% Senior Secured Notes an amount sufficient to satisfy and discharge its obligations under the 8.25% Senior Secured Notes and the indenture. On March 1, 2014, Ply Gem Industries redeemed the remaining outstanding principal amount of the 8.25% Senior Secured Notes at a redemption price equal to 106.188% of the principal amount thereof, plus accrued and unpaid interest to the redemption date. Following the redemption, there were no longer any 8.25% Senior Secured Notes outstanding.

Senior Secured Asset Based Revolving Credit Facility due 2018

On November 1, 2013, Ply Gem Holdings, Inc., Ply Gem Industries, Inc., Ply Gem Canada, Gienow Canada Inc., and Mitten Inc. (together with Ply Gem Canada and Gienow, the “Canadian Borrowers”) entered into an amended and restated credit agreement governing the ABL Facility. Among other things, the amendment and restatement of the credit agreement governing the ABL Facility: (i) increased the overall facility to $250.0 million from $212.5 million, (ii) increased the accordion feature to $100.0 million, (iii) reduced the applicable margin for borrowings under the ABL Facility to a range from 1.50% to 2.00% for Eurodollar rate loans, depending on availability, and (iv) increased the amount available under the ABL Facility to Ply Gem Industries' Canadian subsidiaries to $50.0 million. In November 2014, the Company exercised a portion of the accordion feature under the ABL Facility for $50.0 million, or 50% of the eligible accordion, increasing the ABL Facility from $250.0 million to $300.0 million to account for the additional borrowing base acquired from Simonton. Under the terms of the ABL Facility, the Company has the ability to further increase the revolving commitments up another $50.0 million to $350.0 million, subject to certain terms and conditions. All outstanding loans under the ABL Facility are due and payable in full on November 1, 2018. Under the ABL Facility, $250.0 million is available to Ply Gem Industries and $50.0 million is available to the Canadian Borrowers.

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Borrowings under the ABL Facility bear interest at a rate per annum equal to, at Ply Gem Industries’ option, either (a) a base rate determined by reference to the higher of (1) the corporate base rate of the administrative agent under the ABL Facility and (2) the federal funds rate plus 0.5% or (b) a Eurodollar rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, in each case plus an applicable margin.  The initial applicable margin for borrowings under the ABL Facility was 0.75% for base rate loans and 1.75% for Eurodollar rate loans.  The applicable margin for borrowings under the ABL Facility is subject to step ups and step downs based on average excess availability under the ABL Facility.  Swingline loans bear interest at a rate per annum equal to the base rate plus the applicable margin.

In addition to paying interest on outstanding principal under the ABL Facility, Ply Gem Industries is required to pay a commitment fee in respect of the unutilized commitments thereunder, which fee will be determined based on utilization of the ABL Facility (increasing when utilization is low and decreasing when utilization is high) multiplied by a commitment fee rate determined by reference to average excess availability under the ABL Facility. The commitment fee rate during any fiscal quarter is 0.375% when average excess availability is greater than $100.0 million for the preceding fiscal quarter and 0.25% when average availability is less than or equal to $100.0 million for the preceding fiscal quarter.  Ply Gem Industries must also pay customary letter of credit fees equal to the applicable margin on Eurodollar loans and agency fees.   As of October 3, 2015, the Company’s interest rate on the ABL Facility was approximately 1.80%.  The ABL Facility requires that if (a) excess availability is less than the greater of (x) 10.0% of the lower of the borrowing base and the aggregate commitments and (y) $17.5 million or (b) any event of default has occurred and is continuing, Ply Gem Industries must comply with a minimum fixed charge coverage ratio test of 1.0 to 1.0.  If the excess availability under the ABL Facility is less than the greater of (a) 12.5% of the lesser of the borrowing base and the aggregate commitments and (b) $22.5 million ($20.0 million for the months of January, February, March and April) for a period of 5 consecutive days or an event of default has occurred and is continuing, all cash from Ply Gem Industries material deposit accounts (including all concentration accounts) will be swept daily into a collection account controlled by the administrative agent under the ABL Facility and used to repay outstanding loans and cash collateralize letters of credit.

All obligations under the ABL Facility are unconditionally guaranteed by Ply Gem Holdings and substantially all of Ply Gem Industries’ existing and future, direct and indirect, wholly owned domestic subsidiaries.  All obligations under the ABL Facility, and the guarantees of those obligations, are secured, subject to certain exceptions, by substantially all of the assets of Ply Gem Industries and the guarantors, including a first-priority security interest in personal property consisting of accounts receivable, inventory, cash, deposit accounts, and certain related assets and proceeds of the foregoing and a second-priority security interest in, and mortgages on, substantially all of Ply Gem Industries’ and the Guarantors’ material owned real property and equipment and all assets that secure the Term Loan Facility on a first-priority basis.  In addition to being secured by the collateral securing the obligations of Ply Gem Industries under the domestic collateral package, the obligations of the Canadian Borrowers, which are borrowers under the Canadian sub-facility under the ABL Facility, are also secured by a first-priority security interest in substantially all of the assets of such Canadian subsidiaries, plus additional mortgages in Canada, and a pledge by Ply Gem Industries of the remaining 35% of the equity interests of the Canadian Borrowers pledged only to secure the Canadian sub-facility.

The ABL Facility contains certain covenants that limit Ply Gem Industries’ ability and the ability of Ply Gem Industries’ subsidiaries to incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem their stock, make loans and investments, sell assets, incur certain liens, enter into transactions with affiliates, and consolidate, merge or sell assets.  In particular, Ply Gem Industries is permitted to incur additional debt in limited circumstances, including, but not limited to, permitted subordinated indebtedness in an aggregate principal amount not to exceed $112.5 million at any time outstanding (subject to the ability to incur additional permitted subordinated debt provided that immediately after giving effect to such incurrence excess availability is more than 25% of the lesser of the total borrowing base and the aggregate commitments and Ply Gem Industries is in pro forma compliance with the fixed charge coverage ratio), purchase money indebtedness in an aggregate amount not to exceed $25.0 million at any one time outstanding, debt of foreign subsidiaries (other than Canadian subsidiaries) in an aggregate amount not to exceed $10.0 million at any one time outstanding, indebtedness in connection with the tax receivable agreement in an aggregate principal amount not to exceed $100.0 million, and the refinancing of debt under certain circumstances.  

On November 5, 2015, Ply Gem Industries entered into a second amended and restated ABL Facility. Among other things, the second amended and restated ABL Facility: (i) increased the overall facility to $350.0 million, (ii) provided an accordion feature of $50.0 million, and (iii) established the applicable margin for borrowings under the ABL Facility to a range of 1.25% to 2.00% for Eurodollar rate loans, depending on availability. All outstanding loans under the second amended and restated ABL Facility are due and payable in full on November 5, 2020.

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As of October 3, 2015, Ply Gem Industries had approximately $273.2 million of contractual availability and approximately $247.2 million of borrowing base availability under the ABL Facility, reflecting $20.0 million of borrowings outstanding and approximately $6.8 million of letters of credit and priority payables reserves.

9.375% Senior Notes due 2017

On September 27, 2012, Ply Gem Industries issued $160.0 million of 9.375% Senior Notes at par. Ply Gem Industries used the proceeds of the offering, together with cash on hand, to satisfy and discharge its obligations under the 13.125% Senior Subordinated Notes and the indenture governing the 13.125% Senior Subordinated Notes. The 9.375% Senior Notes would have matured on April 15, 2017 and bore interest at the rate of 9.375% per annum. Interest was paid semi-annually on April 15 and October 15 of each year. The 9.375% Senior Notes were unsecured and fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis by the Guarantors.

On January 30, 2014, Ply Gem Industries purchased approximately $94.7 million of the outstanding 9.375% Senior Notes at a tender price of $1,108.36 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. On January 30, 2014, Ply Gem Industries irrevocably deposited with the trustee for the 9.375% Senior Notes an amount sufficient to satisfy and discharge its obligations under the 9.375% Senior Notes and the indenture. On February 16, 2014, Ply Gem Industries redeemed the remaining outstanding principal amount of the 9.375% Senior Notes at a redemption price equal to 100% of the principal amount plus the “make-whole” premium required under the indenture (which equated to 110.179% of the principal amount thereof), plus accrued and unpaid interest. Following the redemption, there were no longer any 9.375% Senior Notes outstanding.

Loss on debt modification or extinguishment

As a result of the January 2014 6.50% Senior Notes and Term Loan Facility issuance and the tender, redemption, and repurchase of the 8.25% Senior Secured Notes and the 9.375% Senior Notes (the "January 2014 Refinancing") during the nine months endedSeptember 27, 2014, the Company performed an analysis to determine the proper accounting treatment for the January 2014 Refinancing. Specifically, the Company evaluated each creditor with ownership in both the new 6.50% Senior Notes and/or Term Loan Facility debt instruments and the old 8.25% Senior Secured Notes and/or 9.375% Senior Notes to determine whether the transaction should be accounted for as a modification or an extinguishment of debt as it relates to each individual creditor. The Company had approximately $34.4 million of unamortized debt discount and $14.9 million of unamortized debt issuance costs associated with the 8.25% Senior Secured Notes and 9.375% Senior Notes, of which approximately $4.8 million and $2.1 million, respectively, were expensed as a loss on extinguishment of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014 as a result of the January 2014 Refinancing.

The Company also incurred an early tender premium of approximately $61.1 million in conjunction with this transaction, of which approximately $52.6 million was recorded as a discount on the 6.50% Senior Notes and the Term Loan Facility and approximately $8.5 million was expensed as a loss on extinguishment of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014. The Company also expensed approximately $0.3 million for the third party fees for the 8.25% Senior Secured Notes and 9.375% Senior Notes as a result of the January 2014 Refinancing for the nine months endedSeptember 27, 2014. The Company also incurred approximately $14.7 million of costs associated with the 6.50% Senior Notes and Term Loan Facility, of which approximately $9.2 million was recorded as debt issuance costs and approximately $5.5 million was expensed as a loss on modification of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014. Additionally, the Company incurred an original issue discount of approximately $2.2 million for the Term Loan Facility, of which approximately $1.9 million was recorded as a discount and approximately $0.3 million was expensed as a loss on extinguishment of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014.

Based on the January 2014 Refinancing, the Company recognized a loss on debt modification or extinguishment of approximately $21.4 million for the nine months endedSeptember 27, 2014, as summarized in the table below. There was no loss on debt modification or extinguishment in the three and nine months ended October 3, 2015 or the three months ended September 27, 2014.

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(Amounts in thousands)	For the nine months ended
	October 3, 2015		September 27, 2014
Loss on extinguishment of debt:
Tender premium	$	—	$	(8,493	)
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized discount	—		(4,773		)
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized debt issuance costs	—		(2,067		)
Term Loan Facility unamortized discount	—		(255		)
	—		(15,588		)
Loss on modification of debt:
Third party fees for 8.25% Senior Secured Notes and 9.375% Senior Notes	—		(302		)
Third party fees for 6.50% Senior Notes and Term Loan Facility	—		(5,474		)
	—		(5,776		)
Total loss on modification or extinguishment of debt	$	—	$	(21,364	)

Liquidity requirements

We intend to fund our ongoing capital and working capital requirements, including our internal growth, through a combination of cash flows from operations and, if necessary, from borrowings under our ABL Facility.  We believe that we will continue to meet our liquidity requirements over the next 12 months.  We believe that our operating units are positive cash flow generating units and will continue to sustain their operations without any significant liquidity concerns.  The performance of these operating units is significantly impacted by the performance of the housing industry, specifically single family housing starts and the repair and remodeling activity.  Any unforeseen or unanticipated downturn in the housing industry could have a negative impact on our liquidity position.

Management anticipates that our current liquidity position, as well as expected cash flows from our operations, should be sufficient to meet ongoing operational cash flow needs, capital expenditures, debt service obligations, and other fees payable under other contractual obligations for the foreseeable future.  As of October 3, 2015, we had cash and cash equivalents of approximately $43.3 million, approximately $273.2 million of contractual availability under the ABL Facility and approximately $247.2 million of borrowing base availability.  

In order to further supplement our operating cash flow, we have from time to time opportunistically accessed capital markets based on prevailing economic and financial conditions.  Based on market conditions, we may elect to pursue additional financing alternatives in the future. 

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Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements.

Contractual Obligations

In addition to the items listed in the Contractual Obligations table presented in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, we have a potential obligation related to certain tax matters of approximately $2.6 million, including interest of approximately $0.7 million.  The timing of the potential tax payments is unknown.

As of October 3, 2015, the Company had inventory purchase commitments related to supply agreements for aluminum and glass of approximately $16.8 million.

Inflation; Seasonality

Our performance is dependent to a significant extent upon the levels of home repair and remodeling and new home construction spending, all of which are affected by such factors as interest rates, inflation, consumer confidence and unemployment.  We do not believe that inflation has had a material impact on our business, financial condition or results of operations during the past three fiscal years.

The demand for our products is seasonal, particularly in the Northeast and Midwest regions of the United States and Canada where inclement weather conditions during the winter months usually reduces the level of building and remodeling activity in both the home repair and remodeling and the new home construction sectors.  Our sales in both segments are usually lower during the first and fourth quarters.  Since a portion of our manufacturing overhead and operating expenses are relatively fixed throughout the year, operating income and net earnings tend to be lower in quarters with lower sales levels.  In addition, the demand for cash to fund our working capital is greater from late in the fourth quarter through the first quarter.

Recent Accounting Pronouncements

See Note 1 – Summary of Significant Accounting Policies to the condensed consolidated financial statements, regarding the impact of certain recent accounting pronouncements on our condensed consolidated financial statements.

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Special Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements relate to future events or our future financial performance.  In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "plan", "anticipate", "believe", "estimate", "predict", "potential" or "continue", the negative of such terms or other comparable terminology.  These statements are only predictions.  Actual events or results may differ materially.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements.  All written and oral forward-looking statements made in connection with this Quarterly Report on Form 10-Q that are attributable to us or persons acting on our behalf are expressly qualified in their entirety by the Risk Factors set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and other cautionary statements included therein and herein.

There can be no assurance that other factors will not affect the accuracy of these forward-looking statements or that our actual results will not differ materially from the results anticipated in such forward-looking statements. While it is impossible to identify all such factors, factors which could cause actual results to differ materially from those estimated by us include, but are not limited to, those factors or conditions described under Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014, and the following:

• our high degree of leverage and significant debt service obligations;

• restrictions under the indenture governing the 6.50% Senior Notes and the restrictions under our Term Loan Facility and ABL Facility;

• the competitive nature of our industry;

• changes in interest rates, and general economic, home repair and remodeling and new home construction market conditions;

• changes in the price and availability of raw materials; and

• changes in our relationships with our significant customers.

Other factors that could cause actual results to differ from those implied by the forward-looking statements contained in this Quarterly Report on Form 10-Q include those set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014.  We undertake no obligation to update the forward-looking statements in this report.

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Item 3.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

Our principal interest rate exposure relates to the loans outstanding under our Term Loan Facility and our ABL Facility, which provides for borrowings of $430.0 million on the Term Loan and up to $350.0 million on the ABL, bearing interest at a variable rate, based on an adjusted LIBOR rate plus an applicable interest margin or the base rate plus an applicable interest margin.  Each quarter point increase or decrease in the interest rate would change our interest expense by approximately $1.1 million per year for the Term Loan Facility.  Assuming the ABL Facility is fully drawn, each quarter point increase or decrease in the interest rate would change our interest expense by approximately $0.9 million per year. At October 3, 2015, we were not party to any interest rate swaps or caps to manage our interest rate risk. In the future, we may enter into interest rate swaps or interest rate caps, involving exchange of floating for fixed rate interest payments, to reduce our exposure to interest rate volatility.

Foreign Currency Risk

Our results of operations are affected by fluctuations in the value of the U.S. dollar as compared to the value of the Canadian dollar.  For the three and nine months ended October 3, 2015, the net impact of foreign currency changes to our results of operations was a loss of approximately $1.1 million and $2.1 million, respectively. The impact of foreign currency changes related to translation resulted in an increase in stockholders' deficit of approximately $11.3 million for the nine months endedOctober 3, 2015. The revenue or expense reported by us as a result of currency fluctuations will be greater in times of U.S. dollar devaluation and less in times of U.S. dollar appreciation. During 2014, we entered into a forward contract to mitigate the exposure risk of currency fluctuation against the Canadian dollar.  At October 3, 2015, our foreign currency hedging contract had a fair value of $1.4 million and is recorded as a decrease in stockholders' deficit as of October 3, 2015.

Commodity pricing risk

We are subject to significant market risk with respect to the pricing of our principal raw materials, which include PVC resin, aluminum, and wood.  If prices of these raw materials were to increase dramatically, we may not be able to pass such increases on to our customers and, as a result, gross margins could decline significantly.  We manage the exposure to commodity pricing risk by increasing our selling prices for corresponding material cost increases, continuing to diversify our product mix, strategic buying programs and vendor partnering. The Midwest ingot price of aluminum decreased approximately 27.7% for the three months ended October 3, 2015 compared to the three months ended September 27, 2014. The average market price for PVC resin was estimated to have decreased approximately 4.8% for the three months ended October 3, 2015 compared to the three months ended September 27, 2014.

Inflation

We do not believe that inflation, net of our corresponding price increases for material cost, has had a material effect on our business, financial condition or results of operations.  Our lease payments related to our sale/leaseback agreement include an annual increase based on the Consumer Price Index, which could expose us to potential higher costs in years with high inflation. There was no change in CPI for the twelve months ended September 2015.

Labor force risk

Our manufacturing process is highly engineered but involves manual assembly, fabrication, and manufacturing processes. We believe that our success depends upon our ability to employ, train, and retain qualified personnel with the ability to design, utilize and enhance these services and products. In addition, our ability to expand our operations depends in part on our ability to increase our labor force as the U.S. housing market recovers and minimize labor inefficiencies. A significant increase in the wages paid by competing employers could result in a reduction of our labor force, increases in the wage rates that we must pay, or both. If either of these events were to occur, our cost structure could increase, our margins could decrease and any growth potential could be impaired. Historically, the Company has believed that the lag period between breaking ground on a new housing start and the utilization of our products on the exterior of a home was 90 days. The Company believes that the labor force risk has expanded the historical 90 day lag period to 120 days or more.

During the nine months ended October 3, 2015 a new Collective Bargaining Agreement ("CBA") was agreed upon and ratified with the United Brotherhood of Carpenters and Joiners of America, which represents employees in our Western Canadian business unit. This newly ratified agreement will expire in June 2017.

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Item 4.     CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management maintains disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), that are designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding the required disclosure.

Our management is responsible for establishing and maintaining our disclosure controls and procedures. Our Chief Executive Officer and Chief Financial Officer participated with our management in evaluating the effectiveness of our disclosure controls and procedures as of October 3, 2015.  Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures as of October 3, 2015 were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and (ii) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding the required disclosure.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting during the quarter ended October 3, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

As a result of the material weakness described in Item 9A of our Annual Report on Form 10-K for the year ended December 31, 2014, remediation efforts have been in progress during fiscal year 2015. Remediation action items included improving upon the timeliness and effectiveness of the review of nonstandard journal entries. During the quarter ended October 3, 2015, these new controls and procedures operated effectively. As of December 31, 2015, in connection with the close of the current fiscal year, management and the audit committee will again independently evaluate and confirm the effectiveness of these newly implemented disclosure controls and procedures. Management believes the new controls and procedures it has implemented earlier in 2015 completely remediate the material weakness.

Notwithstanding the material weakness that existed as of December 31, 2014, our Chief Executive Officer and Chief Financial Officer have each concluded that the consolidated financial statements included in this Quarterly Report on Form 10-Q present fairly, in all material respects, the financial position, results of operations and cash flows of the Company and its subsidiaries in conformity with GAAP.

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PART II – OTHER INFORMATION

Item 6.                                                 EXHIBITS

(a)   Exhibits

Exhibit No.Description of Exhibits

31.1 *	Certification by President, Chief Executive Officer, and Chairman pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 *	Certification by Executive Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 *	Certification by President, Chief Executive Officer, and Chairman pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2 *	Certification by Executive Vice President and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101*	The following financial statements from Ply Gem Holdings, Inc. Quarterly Report on Form 10-Q for the quarter ended October 3, 2015, filed on November 9, 2015, were formatted in XBRL (Extensible Business Reporting Language): (i) Condensed Consolidated Balance Sheets; (ii) Condensed Consolidated Statements of Operations and Comprehensive Income (Loss); (iii) Condensed Consolidated Statements of Cash Flows; (iv) the Notes to Condensed Consolidated Financial Statements.

*  Filed herewith.

68

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PLY GEM HOLDINGS, INC.

(Registrant)

Date:  November 9, 2015

By:	/s/ Gary E. Robinette
	Gary E. Robinette
	President, Chief Executive Officer, and Chairman of the Board

Date:  November 9, 2015

By:	/s/ Shawn K. Poe
	Shawn K. Poe
	Executive Vice President, Chief Financial Officer, Treasurer and Secretary

69

EX-31.1

Exhibit 31.1

Certification Pursuant To

Section 302 of the Sarbanes-Oxley Act of 2002

I, Gary E. Robinette, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Ply Gem Holdings, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)  designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)  evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)  disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)  all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. 

Date: November 9, 2015

	/s/ Gary E. Robinette
Name:	Gary E. Robinette
Title:	President, Chief Executive Officer, and Chairman of the Board

EX-31.2

Exhibit 31.2

Certification Pursuant To

Section 302 of the Sarbanes-Oxley Act of 2002

I, Shawn K. Poe, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Ply Gem Holdings, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)  designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)  evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)  disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)  all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)  any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 9, 2015

	/s/ Shawn K. Poe
Name:	Shawn K. Poe
Title:	Executive Vice President, Chief Financial Officer, Treasurer and Secretary

EX-32.1

Exhibit 32.1

Certification Pursuant to

18 U.S.C. Section 1350

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report on Form 10-Q of Ply Gem Holdings, Inc., a Delaware corporation (the “Company”), for the quarterly period ended October 3, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.           the Report fully complies, in all material respects, with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.           the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  November 9, 2015	/s/ Gary E. Robinette
	Gary E. Robinette
	President, Chief Executive Officer, and Chairman of the Board

EX-32.2

Exhibit 32.2

Certification Pursuant to

18 U.S.C. Section 1350

As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report on Form 10-Q of Ply Gem Holdings, Inc., a Delaware corporation (the “Company”), for the quarterly period ended October 3, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.           the Report fully complies, in all material respects, with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.           the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:  November 9, 2015	/s/ Shawn K. Poe
	Shawn K. Poe
	Executive Vice President, Chief Financial Officer, Treasurer and Secretary

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value Disclosure (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Dec. 31, 2014
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Derivative, Notional Amount					$ 49,700
Foreign Currency Cash Flow Hedge Liability at Fair Value	$ (1,439)		$ (1,439)		(1,294)
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	1,800	$ (200)	3,900	$ (400)
Quoted Prices in Active Markets (Level 1) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	601,813		601,813		617,500
Quoted Prices in Active Markets (Level 1) [Member] | Six Point Five Senior Notes due 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	601,813		601,813		617,500
Quoted Prices in Active Markets (Level 1) [Member] | Term Loan Facility due 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	0		0		0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	417,197		417,197		404,369
Significant Other Observable Inputs (Level 2) [Member] | Six Point Five Senior Notes due 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	0		0		0
Significant Other Observable Inputs (Level 2) [Member] | Term Loan Facility due 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	417,197		417,197		404,369
Significant Unobservable Inputs (Level 3) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	0		0		0
Significant Unobservable Inputs (Level 3) [Member] | Six Point Five Senior Notes due 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	0		0		0
Significant Unobservable Inputs (Level 3) [Member] | Term Loan Facility due 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	0		0		0
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	1,073,550		1,073,550		1,076,775
Carrying Value [Member] | Six Point Five Senior Notes due 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	650,000		650,000		650,000
Carrying Value [Member] | Term Loan Facility due 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	423,550		423,550		426,775
Fair Value Total [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	1,019,010		1,019,010		1,021,869
Fair Value Total [Member] | Six Point Five Senior Notes due 2022 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	601,813		601,813		617,500
Fair Value Total [Member] | Term Loan Facility due 2021 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Liabilities	$ 417,197		$ 417,197		$ 404,369

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LONG-TERM DEBT - Loss on debt modification or extinguishment (Details) - USD ($) $ in Thousands		3 Months Ended	9 Months Ended
	Jan. 30, 2014	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Dec. 31, 2014
Debt Instrument [Line Items]
Gains (Losses) On Modification Or Extinguishment Of Debt		$ (21,364)	$ 0	$ (21,364)
Unamortized Debt Issuance Expense			21,500		$ 23,800
Extinguishment of Debt, Gain (Loss), Net of Tax			0	(15,588)
Gain (Loss) on Repurchase of Debt Instrument			0	(5,776)
Term Loan Facility due 2021 [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount			29,175		$ 32,518
Third party fees for 8.25% Senior Secured Notes and 9.375% Senior Notes [Member]
Debt Instrument [Line Items]
Gain (Loss) on Repurchase of Debt Instrument			0	(302)
Term Loan Facility due 2021 [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	$ 1,900
Estinguishment of Debt, Unamortized Discount Charged to Expense		255	0	255
Third party fees for Term Loan Facility [Member]
Debt Instrument [Line Items]
Gain (Loss) on Repurchase of Debt Instrument			0	(5,474)
Six Point Five Senior Notes due 2022 [Member] | Term Loan Facility due 2021 [Member]
Debt Instrument [Line Items]
Cumulative early tender premiums	61,100
Extinguishment of Debt, Transaction Costs	14,700
Six Point Five Senior Notes Due 2022 and Term Loan Facility Due 2021 [Member] | debt discount created from January 2014 refinancing [Member]
Debt Instrument [Line Items]
Cumulative early tender premiums	52,600
Debt Issuance Costs [Member] | Six Point Five Senior Notes Due 2022 and Term Loan Facility Due 2021 [Member]
Debt Instrument [Line Items]
Extinguishment of Debt, Transaction Costs	9,200
Nine Point Three Seven Five Senior Unsecured Notes Due 2017 [Member] | Eight Point Two Five Senior Secured Notes due 2018 [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	34,400
Unamortized Debt Issuance Expense	14,900
Estinguishment of Debt, Unamortized Discount Charged to Expense		4,773	0	4,773
Write off of Deferred Debt Issuance Cost			0	2,067
Gain (Loss) on Extinguishment of Debt [Member] | Six Point Five Senior Notes Due 2022 and Term Loan Facility Due 2021 [Member]
Debt Instrument [Line Items]
Extinguishment of Debt, Transaction Costs	$ 5,500
Gain (Loss) on Extinguishment of Debt [Member] | eight point two five senior and nine point three seven five senior unsecured [Member]
Debt Instrument [Line Items]
Write off of Deferred Debt Issuance Cost		2,067
Extinguishment of Debt, Cumulative Early Call Premiums		$ 8,493	0	$ 8,493
modification of debt [Member] | eight point two five senior and nine point three seven five senior unsecured [Member]
Debt Instrument [Line Items]
Write off of Deferred Debt Issuance Cost			$ 300

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LONG-TERM DEBT - 2014 Debt Transactions (Details) - USD ($)					9 Months Ended
	Sep. 19, 2014	Mar. 01, 2014	Feb. 16, 2014	Jan. 30, 2014	Oct. 03, 2015	Sep. 27, 2014	Jan. 23, 2015	Nov. 05, 2014	Sep. 05, 2014	Nov. 01, 2013	Sep. 27, 2012	Feb. 16, 2012	Feb. 11, 2011
Debt Instrument [Line Items]
Repayments of long-term debt					$ 3,225,000	$ 853,075,000
Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 500,000,000					$ 500,000,000
Interest rate, stated percentage				6.50%
Senior Secured Term Loan Facility due 2021 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 430,000,000
Six Point Five Senior Notes Due 2022 and Term Loan Facility Due 2021 [Member]
Debt Instrument [Line Items]
Proceeds from issuance of long-term debt				927,900,000
Eight Point Two Five Senior Secured Notes due 2018 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount												$ 40,000,000	$ 800,000,000
Interest rate, stated percentage					8.25%								8.25%
Extinguishment of Debt, Amount				705,900,000
Tender offer price, per 1000				1,067.50
Debt instrument, early tender payment price, per 1000				30.00
Repayments of long-term debt				780,200,000
Cumulative early tender premiums				47,600,000
Redemption of debt		$ 50,100,000
Redemption price		100.00%
Nine Point Three Seven Five Senior Unsecured Notes Due 2017 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount											$ 160,000,000
Interest rate, stated percentage											9.375%
Extinguishment of Debt, Amount				94,700,000
Tender offer price, per 1000				1,108.36
Debt instrument, early tender payment price, per 1000				30.00
Repayments of long-term debt				107,600,000
Cumulative early tender premiums				$ 10,300,000
Redemption of debt			$ 1,300,000
Redemption price			100.00%
Make whole premium			110.179%
Six Point Five Senior Notes tack on due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount							$ 150,000,000
Proceeds from issuance of long-term debt	$ 138,000,000
Debt Instrument, Unamortized Discount	10,100,000
Deferred finance costs, gross	1,900,000
Six Point Five Senior Notes tack on due 2022 [Member] | cash used to fund acquisition [Member]
Debt Instrument [Line Items]
Cash	3,100,000
Six Point Five Senior Notes tack on due 2022 [Member] | cash used to pay down ABL facility [Member]
Debt Instrument [Line Items]
Long-term line of credit, noncurrent	$ 10,000,000
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member]
Debt Instrument [Line Items]
Accordion Feature Line Increase, Percentage								50.00%
Accordion Feature Line Increase, Amount								$ 50,000,000
Accordion feature line increase					$ 350,000,000			50,000,000		$ 100,000,000
Line of Credit Facility, Maximum Borrowing Capacity					$ 250,000,000			300,000,000		$ 250,000,000
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | percent increase [Member]
Debt Instrument [Line Items]
Accordion feature line increase								$ 0

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PENSION PLANS (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015 USD ($) pension_plan	Sep. 27, 2014 USD ($) pension_plan	Oct. 03, 2015 USD ($) pension_plan	Sep. 27, 2014 USD ($) pension_plan
Compensation and Retirement Disclosure [Abstract]
Number of separate pension plans | pension_plan	2	2	2	2
Net periodic benefit costs
Service cost	$ 0	$ 0	$ 0	$ 0
Interest cost	502	476	1,505	1,427
Expected return on plan assets	(577)	(567)	(1,732)	(1,702)
Amortization of loss	296	116	889	347
Net periodic benefit expense	$ 221	$ 25	$ 662	$ 72

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COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net income (loss)	$ 41,711	$ 21,405	$ 23,224	$ (18,793)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	(4,121)	(5,009)	(11,291)	(5,366)
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	(826)	886	145	(47)
Total comprehensive income (loss)	$ 36,764	$ 17,282	$ 12,078	$ (24,206)

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RESTRUCTURING (Tables)

9 Months Ended

Oct. 03, 2015

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Costs [Table Text Block]

The following table summarizes the Company's restructuring activity for the nine months ended October 3, 2015:

(Amounts in thousands)	Accrued as of		Adjustments			Expensed		Cash payments			Accrued as of
	December 31, 2014		during 2015			during 2015		during 2015			October 3, 2015
Western Canada
Severance costs	$	283	$	(13	)	$	805	$	(1,075	)	$	—
Contract terminations	129		(16		)	—		—			113
	$	412	$	(29	)	$	805	$	(1,075	)	$	113

The Company recorded restructuring costs in selling, general and administrative expenses in the condensed consolidated statements of operations in the periods and in the segments shown in the following table:

	For the three months ended				For the nine months ended
(Amounts in thousands)	October 3, 2015		September 27, 2014		October 3, 2015		September 27, 2014
Siding, Fencing and Stone	$	—	$	—	$	—	$	—
Windows and Doors	—		819		805		3,012
	$	—	$	819	$	805	$	3,012

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ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Dec. 31, 2014
Accrued expenses [Abstract]
Insurance	$ 9,023		$ 9,023		$ 9,144
Employee compensation and benefits	18,327		18,327		15,576
Sales and marketing	55,134		55,134		36,279
Product warranty	18,107		18,107		18,325
Accrued freight	2,452		2,452		1,278
Accrued interest	7,506		7,506		16,470
Accrued environmental liability	436		436		451
Accrued pension	1,753		1,753		1,753
Accrued sales returns and discounts	4,894		4,894		3,054
Accrued taxes	6,234		6,234		3,898
Other	26,247		26,247		38,524
Accrued expenses	150,743		150,743		147,325
Other long-term liabilities [Abstract]
Insurance	1,452		1,452		1,705
Pension liabilities	13,242		13,242		13,327
Multi-employer pension plan withdrawal liability	1,304		1,304		2,094
Product warranty	58,649		58,649		66,098
Long-term product claim liability	138		138		138
Long-term environmental liability	1,212		1,212		1,227
Liabilities for tax uncertainties	2,564		2,564		3,065
Other	5,940		5,940		5,160
Other long-term liabilities	85,438		85,438		94,814
Long term incentive plan expense	700	$ 500	2,200	$ 1,500
Long term incentive plan liabilities	4,100		4,100		4,500
Other Employee Related Liabilities, Current	2,800		2,800		2,500
other employee related liabilities, noncurrent	$ 1,300		$ 1,300		$ 2,000

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INTANGIBLE ASSETS (Tables)

9 Months Ended

Oct. 03, 2015

Finite-Lived Intangible Assets, Net [Abstract]

Components of intangible assets

The table that follows presents the major components of intangible assets as of October 3, 2015 and December 31, 2014:

(Amounts in thousands)	Average Amortization Period			Accumulated			Net Carrying
	(in Years)	Cost		Amortization			Value
As of October 3, 2015:
Patents	14	$	12,770	$	(10,901	)	$	1,869
Trademarks/Tradenames	11	118,360		(75,324		)	43,036
Customer relationships	12	225,215		(135,970		)	89,245
Other	5	5,178		(3,972		)	1,206
Total intangible assets	12	$	361,523	$	(226,167	)	$	135,356
As of December 31, 2014:
Patents	14	$	12,770	$	(10,193	)	$	2,577
Trademarks/Tradenames	11	117,660		(70,797		)	46,863
Customer relationships	13	220,163		(123,299		)	96,864
Other	5	4,379		(2,974		)	1,405
Total intangible assets	12	$	354,972	$	(207,263	)	$	147,709

Schedule of expected amortization expense

Estimated amortization expense for the fiscal years 2015 through 2019 is shown in the following table:

	Amortization
(Amounts in thousands)	expense
2015 (remainder of year)	$	6,915
2016	25,645
2017	21,711
2018	20,925
2019	15,484

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LONG-TERM DEBT - Term Loan Facility due 2021 (Details) - Term Loan Facility due 2021 [Member] - USD ($)		9 Months Ended
	Jan. 30, 2014	Oct. 03, 2015
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 430,000,000
Debt Instrument, Unamortized Discount	2,200,000
Proceeds from Debt, Net of Issuance Costs	$ 427,900,000
Debt Instrument, Maturity Date		Jan. 30, 2021
debt instrument, periodic payment, principal, percentage basis		1.00%
Debt Instrument, Interest Rate, Stated Percentage		4.00%
Debt Instrument, Interest Rate, Effective Percentage	7.00%
Accordion Feature Line Increase, Remaining Availability		$ 140,000,000
accordion feature line increase ratio threshold		3.75
excess cash flow threshold for prepayment		$ 15,000,000
Ply Gem Industries [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		0.50%
Ply Gem Industries [Member] | Libor Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.00%
Ply Gem Industries [Member] | Interest Rate Floor [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.00%
Ply Gem Industries [Member] | eurocurrency loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		3.00%
Ply Gem Industries [Member] | alternate base rate loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.00%
Option Two [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Long-term Debt, Required secured debt Ratio		2.00
Option One [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Long-term Debt, Required secured debt Ratio		2.50
certain non-ordinary course asset sales [Member]
Debt Instrument [Line Items]
excess cash flow subject to prepayment		100.00%
excess cash flow [Member] | Option Two [Member]
Debt Instrument [Line Items]
term loan repayment requirements		25.00%
excess cash flow [Member] | Option One [Member]
Debt Instrument [Line Items]
term loan repayment requirements		50.00%
excess cash flow [Member] | Option Three [Member] [Member]
Debt Instrument [Line Items]
term loan repayment requirements		0.00%
certain issuances of debt [Member]
Debt Instrument [Line Items]
excess cash flow subject to prepayment		100.00%

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Earnings per share (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Accounting Policies [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.1	0.1	0.1	0.1

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details) - USD ($) $ in Millions	9 Months Ended
	Oct. 03, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Purchase Commitment, Remaining Minimum Amount Committed	$ 16.8
Inventory Valuation Reserves	9.1	$ 10.6
Decrease (increase) in inventory reserve	$ (1.5)

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LONG-TERM DEBT - Senior secured asset based revolving credit facility due 2018 (Details) - USD ($) $ in Millions		4 Months Ended	9 Months Ended
	Nov. 03, 2015	Apr. 30, 2014	Oct. 03, 2015	Nov. 02, 2015	Dec. 31, 2014	Nov. 05, 2014	Nov. 01, 2013	Aug. 31, 2011
Senior Secured Asset-Based Revolving Credit Facility due 2016 [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity								$ 212.5
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 250.0			$ 300.0	$ 250.0
Accordion Feature Line Increase, Amount						50.0
Accordion feature line increase			350.0			50.0	100.0
Line of Credit Facility, Current Borrowing Capacity			273.2
Line of Credit Facility, Remaining Borrowing Capacity			247.2
Long-term Line of Credit			20.0		$ 0.0
Letters of Credit Outstanding, Amount			$ 6.8
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Canadian Subsidiaries [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity							$ 50.0
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity						250.0
Line of Credit Facility, Interest Rate During Period			1.80%
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Ply Gem Industries [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			0.50%
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Ply Gem Industries [Member] | Eurodollar [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			1.75%
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Ply Gem Canada [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity						50.0
Percentage of equity guaranteed by parent company			35.00%
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Minimum [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			1.50%
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Maximum [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			2.00%
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | initial base rate [Member] | Ply Gem Industries [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate			0.75%
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | percent increase [Member]
Debt Instrument [Line Items]
Accordion feature line increase						0.0
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | remaining available [Member]
Debt Instrument [Line Items]
Accordion feature line increase						$ 50.0
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Threshold for fee calculation [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Commitment Fee Amount			$ 100.0
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Option Two [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage			0.25%
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Option One [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage			0.375%
Line of Credit Facility, Commitment Fee Amount			$ 100.0
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Debt and Equity Transactions Limitations [Member]
Debt Instrument [Line Items]
Debt Instrument, thresholds excess availability must exceed			25.00%
Foreign debt restriction threshold			$ 10.0
tax receivable agreement indebtedness threshold			100.0
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Debt and Equity Transactions Limitations [Member] | Purchase Money Indebtedness [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 25.0
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Fixed Charge Coverage Ratio [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Long-term Debt, Required Interest Coverage Ratio			1.0
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Option Three [Member] [Member] | Cash Dominion Requirement [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Debt Instrument, Excess Availability length			5 years
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Option Two [Member] | Cash Dominion Requirement [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Debt Instrument, Excess Availability		$ 20.0	$ 22.5
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Option Two [Member] | Fixed Charge Coverage Ratio [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Debt Instrument, Excess Availability			$ 17.5
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Option One [Member] | Cash Dominion Requirement [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Debt Instrument, thresholds excess availability must exceed			12.50%
Senior Secured Asset-Based Revolving Credit Facility due 2018 [Member] | Option One [Member] | Fixed Charge Coverage Ratio [Member] | Ply Gem Industries [Member]
Debt Instrument [Line Items]
Debt Instrument, thresholds excess availability must exceed			10.00%
Subordinated Debt [Member] | Debt and Equity Transactions Limitations [Member]
Debt Instrument [Line Items]
Long-term Debt, Limitation on New Borrowing			$ 112.5
Senior Secured Asset-Based Revolving Credit Facility due 2020 [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity				$ 350.0
Accordion Feature Line Increase, Amount				$ 50.0
Senior Secured Asset-Based Revolving Credit Facility due 2020 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	1.25%
Senior Secured Asset-Based Revolving Credit Facility due 2020 [Member] | Maximum [Member]
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate	2.00%

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SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015 USD ($)	Sep. 27, 2014 USD ($)	Oct. 03, 2015 USD ($) segment	Sep. 27, 2014 USD ($) segment	Dec. 31, 2014 USD ($)
Segment Reporting Information [Line Items]
Reportable segments | segment			2	2
Net sales	$ 530,884	$ 437,848	$ 1,409,266	$ 1,116,524
Operating earnings (loss)	62,001	41,927	93,615	53,575
Total assets	1,311,140		1,311,140		$ 1,254,575
Siding, Fencing and Stone [Member]
Segment Reporting Information [Line Items]
Net sales	255,069	244,416	650,084	609,419
Operating earnings (loss)	51,122	44,756	106,118	89,484
Total assets	719,469		719,469		673,543
Windows and Doors [Member]
Segment Reporting Information [Line Items]
Net sales	275,815	193,432	759,182	507,105
Operating earnings (loss)	18,798	3,773	11,960	(17,793)
Total assets	528,484		528,484		528,938
Unallocated [Member]
Segment Reporting Information [Line Items]
Operating earnings (loss)	(7,919)	$ (6,602)	(24,463)	$ (18,116)
Total assets	$ 63,187		$ 63,187		$ 52,094

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LONG-TERM DEBT - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt	$ 1,017,662	$ 993,217
Less current portion of long-term debt	4,300	4,300
Long-term debt, less current portion	1,013,362	988,917
Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount	46,714	51,040
Term Loan Facility due 2021 [Member]
Debt Instrument [Line Items]
Long-term debt	394,376	394,257
Debt Instrument, Unamortized Discount	29,175	32,518
Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
Long-term debt	$ 603,286	$ 598,960

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INTANGIBLE ASSETS

9 Months Ended

Oct. 03, 2015

Finite-Lived Intangible Assets, Net [Abstract]

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS

The table that follows presents the major components of intangible assets as of October 3, 2015 and December 31, 2014:

(Amounts in thousands)	Average Amortization Period			Accumulated			Net Carrying
	(in Years)	Cost		Amortization			Value
As of October 3, 2015:
Patents	14	$	12,770	$	(10,901	)	$	1,869
Trademarks/Tradenames	11	118,360		(75,324		)	43,036
Customer relationships	12	225,215		(135,970		)	89,245
Other	5	5,178		(3,972		)	1,206
Total intangible assets	12	$	361,523	$	(226,167	)	$	135,356
As of December 31, 2014:
Patents	14	$	12,770	$	(10,193	)	$	2,577
Trademarks/Tradenames	11	117,660		(70,797		)	46,863
Customer relationships	13	220,163		(123,299		)	96,864
Other	5	4,379		(2,974		)	1,405
Total intangible assets	12	$	354,972	$	(207,263	)	$	147,709

Estimated amortization expense for the fiscal years 2015 through 2019 is shown in the following table:

	Amortization
(Amounts in thousands)	expense
2015 (remainder of year)	$	6,915
2016	25,645
2017	21,711
2018	20,925
2019	15,484

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RELATED PARTY TRANSACTIONS (Details) - 2015 agreement [Member] $ in Millions	Oct. 03, 2015 USD ($)
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Due to Officers or Stockholders	$ 3.0
Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Due to Officers or Stockholders	1.3
All retention payments [Member]
Related Party Transaction [Line Items]
Due to Officers or Stockholders	$ 4.3

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ACQUSITIONS (Details) - USD ($)			3 Months Ended		9 Months Ended
	May. 30, 2015	Sep. 19, 2014	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	May. 29, 2015	Dec. 31, 2014
Business Acquisition [Line Items]
Goodwill			$ 479,330,000		$ 479,330,000			$ 476,112,000
Business Combination, Contingent Consideration, Liability			700,000		700,000
Net sales			530,884,000	$ 437,848,000	1,409,266,000	$ 1,116,524,000
Net loss			41,711,000	21,405,000	23,224,000	(18,793,000)
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High			1,000,000		1,000,000
Goodwill, Purchase Accounting Adjustments			2,000,000		500,000
Simonton [Member]
Business Acquisition [Line Items]
Business Combination, Consideration Transferred		$ 130,000,000
Canyon Stone [Member]
Business Acquisition [Line Items]
Net sales			7,900,000		10,800,000
Business Combination, Consideration Transferred	$ 21,000,000
Business Acquisition, Pro Forma Revenue					1,420,500,000	1,134,300,000
Business Acquisition, Pro Forma Net Income (Loss)					23,600,000	16,400,000
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed					300,000
new construction [Member]
Business Acquisition [Line Items]
Net sales					0.80
R&R [Member]
Business Acquisition [Line Items]
Net sales					0.20
Warranty Reserves [Member]
Business Acquisition [Line Items]
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred			(200,000)
Accrued Liabilities [Member]
Business Acquisition [Line Items]
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred			(1,700,000)
Other Assets [Member]
Business Acquisition [Line Items]
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred			(100,000)
Simonton [Member] | new construction [Member]
Business Acquisition [Line Items]
Net sales					0.65
Simonton [Member] | R&R [Member]
Business Acquisition [Line Items]
Net sales					0.35
Ply Gem Industries [Member] | new construction [Member]
Business Acquisition [Line Items]
Net sales					0.53
Ply Gem Industries [Member] | R&R [Member]
Business Acquisition [Line Items]
Net sales					0.47
Cash [Member] | Simonton [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents		(856,000)
Inventory [Member] | Simonton [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory		17,742,000
Inventory [Member] | Canyon Stone [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory							$ 712,000
Accounts Receivable [Member] | Simonton [Member]
Business Acquisition [Line Items]
Business Combination, Acquired Receivables, Fair Value		37,134,000
Accounts Receivable [Member] | Canyon Stone [Member]
Business Acquisition [Line Items]
Business Combination, Acquired Receivables, Fair Value							3,559,000
Other Current Assets [Member] | Simonton [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets		2,133,000
Other Current Assets [Member] | Canyon Stone [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets							41,000
Property, Plant and Equipment, Other Types [Member] | Simonton [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		53,655,000
Property, Plant and Equipment, Other Types [Member] | Canyon Stone [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment							2,019,000
deferred tax asset [Member] | Simonton [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities Noncurrent		(10,462,000)
Other Assets [Member] | Simonton [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets		426,000
Other Intangible Assets [Member] | Simonton [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		62,170,000
Other Intangible Assets [Member] | Canyon Stone [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles							9,300,000
Accounts Payable [Member] | Simonton [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable		(49,916,000)
Accounts Payable [Member] | Canyon Stone [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable							(2,399,000)
Other Liabilities [Member] | Simonton [Member]
Business Acquisition [Line Items]
Consideration paid in acquisition		$ (40,707,000)
Siding, Fencing and Stone [Member]
Business Acquisition [Line Items]
Goodwill			349,077,000		349,077,000			$ 344,048,000
Net sales			$ 255,069,000	$ 244,416,000	650,084,000	$ 609,419,000
Siding, Fencing and Stone [Member] | Simonton [Member]
Business Acquisition [Line Items]
Goodwill, Purchase Accounting Adjustments					$ 0
Siding, Fencing and Stone [Member] | Canyon Stone [Member]
Business Acquisition [Line Items]
Goodwill							$ 7,768,000

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COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Oct. 03, 2015

Commitments and Contingencies Disclosure [Abstract]

Components of the indemnification

the Company has recorded liabilities related to these indemnifications of approximately $0.5 million and $0.5 million, respectively, in current liabilities and $1.6 million and $2.4 million, respectively, in long-term liabilities, consisting of the following:

(Amounts in thousands)	October 3, 2015		December 31, 2014
Product claim liabilities	$	138	$	138
Multi-employer pension plan withdrawal liability	1,304		2,094
Other	665		644
	$	2,107	$	2,876

Changes in the Company's warranty liabilities

Changes in the Company’s short-term and long-term warranty liabilities are as follows:

	For the three months ended						For the nine months ended
(Amounts in thousands)	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Balance, beginning of period	$	76,977		$	40,397		$	84,423		$	42,466
Acquisition - Canyon	—			—			100			—
Acquisition adjustments - Simonton	241			5,370			(7,761		)	5,370
Warranty expense during period	7,463			2,897			16,055			8,209
Settlements made during period	(7,925		)	(5,148		)	(16,061		)	(12,529		)
Balance, end of period	$	76,756		$	43,516		$	76,756		$	43,516

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PENSION PLANS (Tables)

9 Months Ended

Oct. 03, 2015

Compensation and Retirement Disclosure [Abstract]

Net periodic benefit expense

The Company’s net periodic benefit expense for the combined plans for the periods indicated consists of the following components:

(Amounts in thousands)	For the three months ended						For the nine months ended
	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Service cost	$	—		$	—		$	—		$	—
Interest cost	502			476			1,505			1,427
Expected return on plan assets	(577		)	(567		)	(1,732		)	(1,702		)
Amortization of loss	296			116			889			347
Net periodic benefit expense	$	221		$	25		$	662		$	72

XML

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Dec. 31, 2011	Dec. 31, 2014
Indemnification [Abstract]
Receivable related to indemnification	$ 2,100		$ 2,100			$ 2,900
Current liabilities related to indemnifications	500		500			500
Long-term liabilities related to indemnifications	1,600		1,600			2,400
Product claim liabilities	138		138			138
Multi-employer pension plan withdrawal liability	1,304		1,304			2,094
Other	665		665			644
Liabilities for contingency	2,107		2,107			2,876
Warranty claims [Abstract]
Warranty liabilities, Current	18,107		18,107			18,325
Warranty liabilities, Noncurrent	58,649		58,649			66,098
Environmental [Abstract]
Environmental remediation estimate					$ 1,800
Environmental liability within current liabilities						300
Environmental liability within other long-term liabilities	1,200		1,200			1,200
Litigation Settlement, Amount			5,000
Windows and Doors [Member]
Environmental [Abstract]
Environmental liability within current liabilities	300		300
Ply Gem Canada [Member]
Environmental [Abstract]
Environmental liability within current liabilities	100		100
indemnification of liabilities in excess of [Member]
Indemnification [Abstract]
Other	2,500		2,500
attorney fees [Member]
Environmental [Abstract]
Litigation Settlement, Amount			(2,500)
Warranty claims [Member]
Change in the Company's warranty liabilities [Roll Forward]
Balance, beginning of period	76,977	$ 40,397	84,423	$ 42,466
Warranty expense during period	7,463	2,897	16,055	8,209
Settlements made during period	(7,925)	(5,148)	(16,061)	(12,529)
Balance, end of period	76,756	43,516	76,756	43,516
class action settlement [Member]
Environmental [Abstract]
Loss Contingency, Estimate of Possible Loss	1,600		1,600
Other Current Liabilities [Member] | class action settlement [Member]
Environmental [Abstract]
Loss Contingency, Estimate of Possible Loss	630		630			2,573
Other Noncurrent Liabilities [Member] | class action settlement [Member]
Environmental [Abstract]
Loss Contingency, Estimate of Possible Loss	937		937			$ 2,000
Canyon Stone [Member] | warranty accruals acquired in acquisition [Member]
Change in the Company's warranty liabilities [Roll Forward]
Balance, end of period	100	0	100	0
Simonton [Member] | warranty accruals acquired in acquisition [Member]
Change in the Company's warranty liabilities [Roll Forward]
Balance, end of period	(7,761)	$ 5,370	(7,761)	$ 5,370
three months ended [Member] | Canyon Stone [Member] | warranty accruals acquired in acquisition [Member]
Change in the Company's warranty liabilities [Roll Forward]
Balance, end of period	0		0
three months ended [Member] | Simonton [Member] | warranty accruals acquired in acquisition [Member]
Change in the Company's warranty liabilities [Roll Forward]
Balance, end of period	$ 241		$ 241

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GOODWILL (Details)	3 Months Ended	9 Months Ended		12 Months Ended
	Oct. 03, 2015 USD ($)	Oct. 03, 2015 USD ($) reporting_unit	Sep. 27, 2014 reporting_unit	Dec. 31, 2013 USD ($)	May. 29, 2015 USD ($)	Dec. 31, 2014 USD ($)	Sep. 19, 2014 USD ($)
Goodwill [Line Items]
Number of reporting units | reporting_unit		2	2
Goodwill impairment				$ 0
Goodwill	$ 479,330,000	$ 479,330,000				$ 476,112,000
Goodwill, Purchase Accounting Adjustments	(2,000,000)	(500,000)
Siding, Fencing and Stone [Member]
Goodwill [Line Items]
Goodwill, Gross	471,304,000	471,304,000				466,275,000
Goodwill, Impaired, Accumulated Impairment Loss	(122,227,000)	(122,227,000)				(122,227,000)
Goodwill	349,077,000	349,077,000				344,048,000
Goodwill, Translation Adjustments		(2,739,000)
Windows and Doors [Member]
Goodwill [Line Items]
Goodwill, Gross	458,026,000	458,026,000				459,837,000
Goodwill, Impaired, Accumulated Impairment Loss	(327,773,000)	(327,773,000)				(327,773,000)
Goodwill	$ 130,253,000	130,253,000				$ 132,064,000
Goodwill, Translation Adjustments		(1,301,000)
Canyon Stone [Member] | Siding, Fencing and Stone [Member]
Goodwill [Line Items]
Goodwill					$ 7,768,000
Goodwill, Acquired During Period		7,768,000
Canyon Stone [Member] | Windows and Doors [Member]
Goodwill [Line Items]
Goodwill, Acquired During Period		0
Simonton [Member] | Siding, Fencing and Stone [Member]
Goodwill [Line Items]
Goodwill, Purchase Accounting Adjustments		0
Simonton [Member] | Windows and Doors [Member]
Goodwill [Line Items]
Goodwill							$ 58,681,000
Goodwill, Purchase Accounting Adjustments		$ (510,000)

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ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES (Tables)

9 Months Ended

Oct. 03, 2015

Payables and Accruals [Abstract]

Accrued expenses and other long term liabilities

Accrued expenses consist of the following at October 3, 2015 and December 31, 2014:

(Amounts in thousands)	October 3, 2015		December 31, 2014
Insurance	$	9,023	$	9,144
Employee compensation and benefits	18,327		15,576
Sales and marketing	55,134		36,279
Product warranty	18,107		18,325
Accrued freight	2,452		1,278
Accrued interest	7,506		16,470
Accrued environmental liability	436		451
Accrued pension	1,753		1,753
Accrued sales returns and discounts	4,894		3,054
Accrued taxes	6,234		3,898
Litigation accrual	630		2,573
Other	26,247		38,524
	$	150,743	$	147,325

Other long-term liabilities consist of the following at October 3, 2015 and December 31, 2014:

(Amounts in thousands)	October 3, 2015		December 31, 2014
Insurance	$	1,452	$	1,705
Pension liabilities	13,242		13,327
Multi-employer pension withdrawal liability	1,304		2,094
Product warranty	58,649		66,098
Long-term product claim liability	138		138
Long-term environmental liability	1,212		1,227
Liabilities for tax uncertainties	2,564		3,065
Litigation accrual	937		2,000
Other	5,940		5,160
	$	85,438	$	94,814

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STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Oct. 03, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Rollforward of stock options outstanding

A rollforward of stock options outstanding during the nine months endedOctober 3, 2015 is presented below: 

	Stock Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Balance at January 1, 2015	2,749,064		$	13.38	5.50
Granted	247,808		12.62		—
Exercised	(225,960	)	9.75		—
Forfeited or expired	(197,119	)	—		—
Balance at October 3, 2015	2,573,793		$	13.70	5.71

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GOODWILL

9 Months Ended

Oct. 03, 2015

Goodwill [Abstract]

GOODWILL

GOODWILL

The Company records the excess of the fair value of the acquisition consideration over the net tangible and intangible assets of acquired companies as goodwill.  The Company performs an annual test for goodwill impairment at the November month end each year and also at any other date when events or changes in circumstances indicate that the carrying value of these assets may exceed their fair value.  The Company has defined its reporting units and performs the impairment testing of goodwill at the operating segment level.  The Company has two reporting units: (1) Siding, Fencing and Stone and (2) Windows and Doors.  Separate valuations are performed for each of these reporting units in order to test for impairment.      

The Company uses the two-step method to determine goodwill impairment.  If the carrying amount of a reporting unit exceeds its fair value (“Step One”), the Company measures the possible goodwill impairment based upon a hypothetical allocation of the fair value estimate of the reporting unit to all of the underlying assets and liabilities of the reporting unit, including previously unrecognized intangible assets (“Step Two”).  The excess of the reporting unit’s fair value over the amounts assigned to its assets and liabilities is the implied fair value of goodwill.  An impairment loss is recognized to the extent that a reporting unit’s recorded goodwill exceeds the implied fair value of goodwill. The Company has elected not to utilize the qualitative Step Zero impairment assessment. There was no goodwill impairment for the year ended December 31, 2014 and no impairment indicators which would trigger an interim impairment test during the three and nine months ended October 3, 2015. However, the Company will continue to evaluate goodwill during future periods and future declines in the residential housing and repair and remodeling markets or the Company's market capitalization could result in goodwill impairments.  

To determine the fair value of its reporting units, the Company equally considers both the income and market valuation methodologies.  The income valuation methodology uses the fair value of the cash flows that the reporting unit can be expected to generate in the future. This method requires management to project revenues, operating expenses, working capital investment, capital spending and cash flows for the reporting unit over a multi-year period as well as determine the weighted average cost of capital to be used as the discount rate.  The Company also utilizes the market valuation method to estimate the fair value of the reporting units by utilizing comparable public company multiples.  These comparable public company multiples are then applied to the reporting unit’s financial performance.  The market approach is more volatile as an indicator of fair value as compared to the income approach as internal forecasts and projections have historically been more stable.  Since each approach has its merits, the Company equally weights the approaches to balance the internal and external factors affecting the Company’s fair value.

The Company’s fair value estimates of its reporting units and goodwill are sensitive to a number of assumptions including discount rates, cash flow projections, operating margins, and comparable market multiples.  In order to accurately forecast future cash flows, the Company estimates single family housing starts and the repair and remodeling market's growth rates.  However, there is no assurance that: (1) valuation multiples will not decline, (2) discount rates will not increase, or (3) the earnings, book values or projected earnings and cash flows of the Company's reporting units will not decline. 

The reporting unit goodwill balances were as follows as of October 3, 2015 and December 31, 2014:

(Amounts in thousands)
	October 3, 2015		December 31, 2014
Siding, Fencing and Stone	$	349,077	$	344,048
Windows and Doors	130,253		132,064
	$	479,330	$	476,112

The changes in the goodwill balances from December 31, 2014 to October 3, 2015 relate to currency translation, the Canyon Stone acquisition and Simonton purchase accounting adjustments. A goodwill rollforward for 2015 is included in the table below:

	Windows and			Siding, Fencing
(Amounts in thousands)	Doors			and Stone
Balance as of December 31, 2014
Goodwill	$	459,837		$	466,275
Accumulated impairment losses	(327,773		)	(122,227		)
	$	132,064		$	344,048
Currency translation adjustments	(1,301		)	(2,739		)
Simonton purchase accounting adjustments	(510		)	—
Canyon Stone acquisition	—			7,768
Balance as of October 3, 2015
Goodwill	458,026			471,304
Accumulated impairment losses	(327,773		)	(122,227		)
	$	130,253		$	349,077

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SEGMENT INFORMATION (Tables)

9 Months Ended

Oct. 03, 2015

Segment Reporting [Abstract]

Summary of the Company's segment information

Following is a summary of the Company’s segment information:

	For the three months ended						For the nine months ended
(Amounts in thousands)	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Net sales
Siding, Fencing and Stone	$	255,069		$	244,416		$	650,084		$	609,419
Windows and Doors	275,815			193,432			759,182			507,105
	$	530,884		$	437,848		$	1,409,266		$	1,116,524
Operating earnings (loss)
Siding, Fencing and Stone	$	51,122		$	44,756		$	106,118		$	89,484
Windows and Doors	18,798			3,773			11,960			(17,793		)
Unallocated	(7,919		)	(6,602		)	(24,463		)	(18,116		)
	$	62,001		$	41,927		$	93,615		$	53,575
	Total assets as of
	October 3, 2015			December 31, 2014
Total assets
Siding, Fencing and Stone	$	719,469		$	673,543
Windows and Doors	528,484			528,938
Unallocated	63,187			52,094
	$	1,311,140		$	1,254,575

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign Currency (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Accounting Policies [Abstract]
Foreign Currency Transaction Gain (Loss), Realized	$ 1,069	$ 766	$ (2,101)	$ (517)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	$ (4,121)	$ (5,009)	$ (11,291)	$ (5,366)

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LONG-TERM DEBT - 9.375% Senior Notes due 2017 (Details) - Nine Point Three Seven Five Senior Unsecured Notes Due 2017 [Member] - USD ($)			9 Months Ended
	Feb. 16, 2014	Jan. 30, 2014	Oct. 03, 2015	Sep. 27, 2012
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 160,000,000
Debt Instrument, Interest Rate, Stated Percentage				9.375%
Debt Instrument, Maturity Date			Apr. 15, 2017
Extinguishment of Debt, Amount		$ 94,700,000
Tender offer price, per 1000		1,108.36
Debt instrument, early tender payment price, per 1000		$ 30.00
Debt Instrument, Redemption Price, Percentage	0.00%
Make whole premium	110.179%

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CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Net sales	$ 530,884	$ 437,848	$ 1,409,266	$ 1,116,524
Cost of products sold	396,103	339,259	1,089,461	890,717
Gross profit	134,781	98,589	319,805	225,807
Operating expenses:
Selling, general and administrative expenses	66,358	51,355	207,286	156,391
Amortization of intangible assets	6,422	5,307	18,904	15,841
Total operating expenses	72,780	56,662	226,190	172,232
Operating earnings	62,001	41,927	93,615	53,575
Foreign currency (loss) gain	(1,069)	(766)	(2,101)	(517)
Interest expense	(18,840)	(16,300)	(56,632)	(52,065)
Interest income	21	18	47	64
Tax receivable agreement liability adjustment	(1,712)	13,988	13,467	14,419
Loss on modification or extinguishment of debt			0	(21,364)
Income (Loss) before provision (benefit) for income taxes	43,825	10,891	21,462	(34,726)
Provision (benefit) for income taxes	2,114	(10,514)	(1,762)	(15,933)
Net income (loss)	41,711	21,405	23,224	(18,793)
Comprehensive income (loss)	$ 36,764	$ 17,282	$ 12,078	$ (24,206)
Basic	$ 0.61	$ 0.32	$ 0.34	$ (0.28)
Weighted Average Number of Shares Outstanding, Basic	68,044,674	67,844,546	67,971,236	67,807,801
Earnings Per Share, Basic and Diluted	$ 0.61	$ 0.32	$ 0.34	$ (0.28)
Weighted Average Number of Shares Outstanding, Diluted	68,184,013	67,944,470	68,105,555	67,807,801

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INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Oct. 03, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Average Amortization Period (in years)	12 years	12 years
Cost	$ 361,523	$ 354,972
Accumulated Amortization	(226,167)	(207,263)
Net Carrying Value	135,356	$ 147,709
Estimated future amortization [Abstract]
2015 (remainder of year)	6,915
2016	25,645
2017	21,711
2018	20,925
2019	$ 15,484
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Average Amortization Period (in years)	14 years	14 years
Cost	$ 12,770	$ 12,770
Accumulated Amortization	(10,901)	(10,193)
Net Carrying Value	$ 1,869	$ 2,577
Trademarks/Tradenames [Member]
Finite-Lived Intangible Assets [Line Items]
Average Amortization Period (in years)	11 years	11 years
Cost	$ 118,360	$ 117,660
Accumulated Amortization	(75,324)	(70,797)
Net Carrying Value	$ 43,036	$ 46,863
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Average Amortization Period (in years)	12 years	13 years
Cost	$ 225,215	$ 220,163
Accumulated Amortization	(135,970)	(123,299)
Net Carrying Value	$ 89,245	$ 96,864
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Average Amortization Period (in years)	5 years	5 years
Cost	$ 5,178	$ 4,379
Accumulated Amortization	(3,972)	(2,974)
Net Carrying Value	$ 1,206	$ 1,405

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Oct. 03, 2015

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Ply Gem Holdings, Inc. and its subsidiaries (referred to herein as “Ply Gem Holdings”, “Ply Gem”, the “Company”, “we”, “us”, or “our”) have been prepared in accordance with U.S. generally accepted accounting principles as described in the consolidated financial statements and related notes included in our 2014 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 13, 2015.  These statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles and should be read in conjunction with our 2014 Annual Report on Form 10-K.  In management’s opinion, all normal and recurring adjustments considered necessary for a fair presentation have been included.  Operating results for the period from January 1, 2015 through October 3, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements of Ply Gem Holdings at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

The Company’s fiscal quarters are based on periods ending on the Saturday of the last week in the quarter.  Therefore, the financial results of certain fiscal quarters will not be comparable to the prior and subsequent fiscal quarters.  The accompanying financial statements include the Company’s condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended October 3, 2015 and September 27, 2014, the condensed consolidated statements of cash flows for the nine months endedOctober 3, 2015 and September 27, 2014, and the condensed consolidated balance sheets as of October 3, 2015 and December 31, 2014.

Ply Gem is a diversified manufacturer of residential and commercial building products, which are sold primarily in the United States and Canada, and include a wide variety of products for the residential and commercial construction, the do-it-yourself and the professional remodeling and renovation markets.  The demand for the Company’s products is seasonal, particularly in the Northeast and Midwest regions of the United States and Canada where inclement weather during the winter months usually reduces the level of building and remodeling activity in both the home repair and remodeling and new home construction sectors.  The Company’s sales are usually lower during the first and fourth quarters.

To a significant extent our performance is dependent upon the levels of home repair and remodeling and new home construction spending, all of which are affected by such factors as interest rates, inflation, consumer confidence, unemployment, and availability of consumer credit.

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Ply Gem Holdings and its subsidiaries, all of which are wholly owned.  All intercompany accounts and transactions have been eliminated.

Accounting Policies and Use of Estimates

The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles involves estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expense during the reporting periods.  Certain of the Company’s accounting policies require the application of judgment in selecting the appropriate assumptions for calculating financial estimates.  By their nature, these judgments are subject to an inherent degree of uncertainty.  The Company periodically evaluates the judgments and estimates used in their critical accounting policies to ensure that such judgments and estimates are reasonable.  Such estimates include the allowance for doubtful accounts receivable, rebates, pensions, valuation of inventories, warranty reserves, insurance reserves, legal contingencies, assumptions used in the calculation of income taxes and the tax receivable agreement liability, projected cash flows used in the goodwill and intangible asset impairment tests, and environmental accruals and other contingencies.  These judgments are based on the Company’s historical experience, current trends and information available from other sources, and are based on management’s best estimates and judgments.  The Company adjusts such estimates and assumptions when facts and circumstances dictate.  Volatile equity markets, foreign currency, and litigation risk have combined to increase the uncertainty inherent in such estimates and assumptions.  If different conditions result from those assumptions used in the Company’s judgments, actual results could be materially different from the Company’s estimates.

Cash and Cash Equivalents

Cash equivalents consist of short-term highly liquid investments with original maturities of three months or less and which are readily convertible into cash.

Accounts Receivable

Accounts receivable-trade are recorded at their net realizable value.  The allowance for doubtful accounts was $4.7 million at October 3, 2015 and $4.2 million at December 31, 2014.  The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company estimates the allowance for doubtful accounts based on a variety of factors including the length of time receivables are past due, the financial health of its customers, unusual macroeconomic conditions and historical experience. If the financial condition of its customers deteriorates or other circumstances occur that result in an impairment of customers’ ability to make payments, the Company records additional allowances as needed. The Company writes off uncollectible trade accounts receivable against the allowance for doubtful accounts when collection efforts have been exhausted and/or any legal action taken by the Company has concluded.

Inventories

Inventories in the accompanying condensed consolidated balance sheets are valued at the lower of cost or market and are determined primarily by the first-in, first-out (FIFO) method.  The Company records provisions, as appropriate, to write-down obsolete and excess inventory to estimated net realizable value.  The process for evaluating obsolete and excess inventory often requires the Company to make subjective judgments and estimates concerning future sales levels, quantities and prices at which such inventory will be able to be sold in the normal course of business.  Accelerating the disposal process or incorrect estimates of future sales potential may cause actual results to differ from the estimates at the time such inventory is disposed or sold. As of October 3, 2015, the Company had inventory purchase commitments related to supply agreements for aluminum and glass of approximately $16.8 million.

Inventory reserves were approximately $9.1 million at October 3, 2015, decreasing during the nine months endedOctober 3, 2015 by $1.5 million compared to the December 31, 2014 reserve balance of approximately $10.6 million.

Property and Equipment

Property and equipment are presented at cost.  Depreciation of property and equipment are provided on a straight-line basis over estimated useful lives, which are generally as follows: 

Buildings and improvements	10-37 years
Machinery and equipment, including leases	3-15 years
Leasehold improvements	Term of lease or useful life, whichever is shorter

Expenditures for maintenance and repairs are expensed when incurred. Expenditures for renewals and betterments are capitalized.  When assets are sold, or otherwise disposed, the cost and related accumulated depreciation are eliminated and the resulting gain or loss is recognized in operations.  

Intangible Assets, Goodwill and Other Long-lived Assets

Long-lived assets

The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable.  The Company performs an undiscounted operating cash flow analysis to determine if impairment exists.  If an impairment is determined to exist, any related impairment loss is calculated based on the asset’s fair value and the discounted cash flows.

The Company tests for long-lived asset impairment at the following asset group levels: (i) the combined U.S. Siding, Fencing and Stone companies in the Siding, Fencing and Stone segment (“Siding”), (ii) the combined U.S. Windows companies in the Windows and Doors segment (“U.S. Windows”), (iii) the combined Simonton windows companies in the Windows and Doors segment, (iv) Gienow Canada Inc. ("Gienow Canada") (a combined Western Canadian company created by the January 2014 amalgamation of the Company's legacy Western Canadian business and the Gienow entity acquired in April 2013) in the Windows and Doors segment, and (v) Mitten in the Siding, Fencing and Stone segment. For purposes of recognition and measurement of an impairment loss, a long-lived asset or asset group should represent the lowest level for which an entity can separately identify cash flows that are largely independent of the cash flows of other assets and liabilities.  There were no indicators of impairment during the three and nine months ended October 3, 2015.

Goodwill and other intangible assets

The Company evaluates goodwill for impairment on an annual basis and whenever events or business conditions warrant.  All other intangible assets are amortized over their estimated useful lives and are assessed for impairment as necessary.  The Company assesses goodwill for impairment at the November month end each year and also at any other date when events or changes in circumstances indicate that the carrying value of these assets may exceed their fair value.  To evaluate goodwill for impairment, the Company estimates the fair value of reporting units considering such factors as discounted cash flows and valuation multiples for comparable publicly traded companies.  A significant reduction in projected sales and earnings, which would lead to a reduction in future cash flows, could indicate potential impairment.  There were no indicators of impairment during the three and nine months ended October 3, 2015 that would trigger an interim impairment test.  The Company will continue to evaluate goodwill during future periods and future declines in the residential housing and repair and remodeling markets could result in goodwill impairments.

Debt Issuance Costs

Debt issuance costs, composed of facility, agency, and certain legal fees associated with issuing new debt financing, are amortized over the contractual term of the related agreement using the effective interest method.  Net debt issuance costs totaled approximately $21.5 million and $23.8 million as of October 3, 2015 and December 31, 2014, respectively, and have been recorded in other long term assets in the accompanying condensed consolidated balance sheets. Amortization of debt issuance costs for the three months ended October 3, 2015 and September 27, 2014 was approximately $0.8 million and $0.8 million, respectively. Amortization of debt issuance costs for the nine months endedOctober 3, 2015 and September 27, 2014 was approximately $2.3 million and $2.8 million, respectively. Amortization of debt issuance costs is recorded in interest expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss).

Income Taxes

The Company utilizes the asset and liability method of accounting for income taxes which requires that deferred tax assets and liabilities be recorded to reflect the future tax consequences of temporary differences between the book and tax basis of various assets and liabilities.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect of changes in tax rates on deferred tax assets and liabilities is recognized as income or expense in the period in which the rate change occurs.  A valuation allowance is established to offset any deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

Estimates are required with respect to, among other things, the appropriate state income tax rates used in the various states that the Company and its subsidiaries are required to file, the potential utilization of operating and capital loss carry-forwards for both federal and state income tax purposes and valuation allowances required, if any, for tax assets that may not be realized in the future.  The Company establishes reserves when, despite our belief that our tax return positions are fully supportable, certain positions could be challenged, and the positions may not be fully sustained.  The Company along with its U.S. subsidiaries file a consolidated federal income tax return, separate state income tax returns, combined state returns, and unitary state returns. Gienow Canada and Mitten both file separate Canadian federal income tax returns and separate provincial returns. Simonton has joined the filing of the consolidated U.S. federal returns. Simonton has also joined the filings of certain combined and unitary state income tax returns as well as continued to file certain state returns on a separate company basis.

Tax receivable agreement ("TRA") liability

As a result of the Company’s full tax valuation allowance position, the Company’s methodology for calculating the TRA liability considers expectations regarding (i) current year taxable income only (due to the uncertainty of future taxable income associated with the Company’s cumulative loss position) and (ii) future income due to the expected reversals of deferred tax liabilities. During the three months ended October 3, 2015, the Company estimated its projected taxable income for the full year ending December 31, 2015 based on the Company’s 2015 estimates. However, the Company’s methodology to estimate the TRA liability excludes forecasts for fiscal years subsequent to 2015 because such future forecasts and projections cannot be relied upon based on the negative evidence from the Company’s three year cumulative loss position. For fiscal year 2015, the Company estimated to be in a taxable income position; however, this taxable income estimate was not sufficient to outweigh the negative evidence or alleviate the Company’s three year cumulative loss position. In addition to projecting the Company’s current year taxable income estimate, the Company considered the reversals of deferred tax assets and deferred tax liabilities.

Environmental

The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Environmental remediation obligation accruals are adjusted as further information develops or circumstances change.  Costs of future expenditures for environmental remediation obligations are not discounted to their present value.  Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable.

Commitments and Contingencies

The Company accrues for all direct costs associated with the estimated resolution of contingencies at the earliest date at which it is deemed probable that a liability has been incurred and the amount of such liability can be reasonably estimated.  Costs accrued have been estimated based upon an analysis of potential results, assuming a combination of litigation and settlement strategies and outcomes. Insurance recoveries are recorded as assets when their receipt is deemed probable.

Foreign Currency

Gienow Canada and Mitten, the Company’s Canadian subsidiaries, utilize the Canadian dollar as their functional currency.  For reporting purposes, the Company translates the assets and liabilities of its foreign entities at the exchange rates in effect at period-end.  Net sales and expenses are translated using average exchange rates in effect during the period.  Gains and losses from foreign currency translation are credited or charged to accumulated other comprehensive income or loss in the accompanying condensed consolidated balance sheets.

The Company recorded a loss from foreign currency transactions of approximately $1.1 million for the three months ended October 3, 2015 and a loss of approximately $0.8 million for the three months ended September 27, 2014. The Company recorded a loss from foreign currency transactions of approximately $2.1 million for the nine months ended October 3, 2015 and a loss of approximately $0.5 million for the nine months ended September 27, 2014. During the nine months ended October 3, 2015 and September 27, 2014, accumulated other comprehensive loss included a currency translation adjustment of approximately $11.3 million and $5.4 million, respectively.

Derivative Financial Instruments

During the year ended December 31, 2014, the Company entered into a foreign currency forward contract agreement to hedge approximately $49.7 million of its 2015 non-functional currency inventory purchases to protect the Company from variability in cash flows attributable to changes in the U.S. dollar relative to the Canadian dollar.

The Company has designated this forward contract as a cash flow hedge. As a cash flow hedge, unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The forward contract agreement is highly correlated to the changes in foreign currency rates to which the Company is exposed. Unrealized gains and losses on this agreement are designated as effective or ineffective. The effective portion of such gains or losses is recorded as a component of accumulated other comprehensive income or loss, while the ineffective portion of such gains or losses is recorded as a component of cost of goods sold. Future realized gains and losses in connection with each inventory purchase will be reclassified from accumulated other comprehensive income or loss to cost of goods sold.

The changes in fair values of derivatives that have been designated and qualify as cash flow hedges are recorded in accumulated other comprehensive income or loss and are reclassified into cost of goods sold in the same period the hedged item affects earnings. Due to the high degree of effectiveness between the hedging instrument and the underlying exposures being hedged, fluctuations in the value of the derivative instrument are generally offset by changes in the fair value or cash flows of the underlying exposures being hedged. The changes in the fair value of derivatives that do not qualify as effective are immediately recognized in earnings.

The gains and losses on the derivative contract that are reclassified from accumulated other comprehensive income or loss to current period earnings are included in the line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings. As of October 3, 2015, approximately $1.4 million of the deferred net asset on derivative instruments included in accumulated other comprehensive loss is expected to be reclassified against cost of goods sold during the next three months. This expectation is based on the expected timing of the occurrence of the hedged forecasted transactions. During the three and nine months ended October 3, 2015, the Company recognized $1.8 million and $3.9 million within earnings as a reduction of cost of goods sold in the condensed consolidated statement of operations. During the three and nine months ended September 27, 2014, the Company recognized $0.2 million and $0.4 million within earnings as an increase to cost of goods sold in the condensed consolidated statement of operations.

The fair value of the foreign currency forward contract agreement is estimated using industry standard valuation models using market-based observable inputs, including spot rates, forward points, interest rates and volatility inputs (Level 2). A summary of the recorded asset included in the accompanying condensed consolidated balance sheets is as follows:

(Amounts in thousands)
	October 3, 2015		December 31, 2014
Foreign currency hedge (included in other current assets)	$	1,439	$	1,294

Fair Value Measurement

The accounting standard for fair value discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flows), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

• Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

• Level 3: Inputs that reflect the reporting entity’s own assumptions.

The hierarchy requires the use of observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.  The fair value of the long-term debt instruments was determined by utilizing available market information.  The carrying value of the Company’s other assets and liabilities approximates their fair value. 

The Company’s population of recurring financial assets and liabilities subject to fair value measurements and the necessary disclosures are as follows:

					Quoted Prices in Active Markets		Significant Other		Significant
(Amounts in thousands)			Fair		for Identical		Observable		Unobservable
	Carrying		Value		Assets		Inputs		Inputs
Description	Value		Total		(Level 1)		(Level 2)		(Level 3)
Liabilities:
Senior Notes-6.50%	$	650,000	$	601,813	$	601,813	$	—	$	—
Term Loan Facility	423,550		417,197		—		417,197		—
As of October 3, 2015:	$	1,073,550	$	1,019,010	$	601,813	$	417,197	$	—
Liabilities:
Senior Notes-6.50%	$	650,000	$	617,500	$	617,500	$	—	$	—
Term Loan Facility	426,775		404,369		—		404,369		—
As of December 31, 2014	$	1,076,775	$	1,021,869	$	617,500	$	404,369	$	—

Earnings (Loss) Per Common Share

Basic earnings (loss) per share ("EPS") is computed based upon weighted-average shares outstanding during the period. Dilutive earnings per share is computed consistently with the basic computation while giving effect to all dilutive potential common shares and common share equivalents that were outstanding during the period. Ply Gem Holdings uses the treasury stock method to reflect the potential dilutive effect of unvested stock awards and unexercised options.

The Company was in a net loss position for the nine months ended September 27, 2014 and therefore the impact of stock options and unvested restricted stock were excluded from the computation of diluted earnings (loss) per share for that specific period, as the inclusion of such amounts would be anti-dilutive.

The computation of the dilutive effect of other potential common shares included options and unvested restricted stock representing approximately 0.1 million shares of common stock for the three months ended October 3, 2015 and approximately 0.1 million shares of common stock for the nine months endedOctober 3, 2015. The computation of the dilutive effect of other potential common shares included options and unvested restricted stock representing approximately 0.1 million shares of common stock for the three months ended September 27, 2014 and excluded approximately 0.1 million shares of common stock for the nine months endedSeptember 27, 2014, respectively.

New Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2014, which means the first quarter of Ply Gem's fiscal year 2015, with early adoption permitted. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The adoption of this new guidance did not affect the Company's consolidated financial position, results of operations or cash flows.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which completes the joint effort by the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and improve financial reporting by creating common revenue recognition guidance for U.S. generally accepted accounting principles ("GAAP") and International Financial Reporting Standards ("IFRS"). ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and GAAP. The core principle of this update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB finalized a one-year deferral of the effective date of the new revenue recognition standard. The new standard will become effective for Ply Gem beginning with the first quarter of 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. The method of adoption has not been determined yet by the Company. The Company is currently reviewing the revised guidance and assessing the potential impact on the consolidated financial statements.

In January 2015, the FASB issued ASU No. 2015-01, Income Statement-Extraordinary and Unusual Items, which eliminates from GAAP the concept of extraordinary items and the requirement that an entity separately classify, present and disclose extraordinary events and transactions. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016. The guidance can be applied retrospectively or prospectively. This new guidance is not expected to affect the Company's consolidated financial position, results of operations or cash flows.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation, which adjusts the determination of whether an entity is a variable interest entity ("VIE") through various assessment criteria including fees paid to the decision maker within the entity or service provider, related party tests regarding indirect interests, among other others. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016, with early adoption permitted. The guidance can be applied with a modified retrospective approach with a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption or retrospectively. This new guidance is not expected to affect the Company's consolidated financial position, results of operations or cash flows.    

In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Additionally, in August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest, which specifies that debt issuance costs related to line-of-credit arrangements can still be presented as an asset and amortized ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016, with early adoption permitted. The guidance applies retrospectively to all debt issuance costs. This new guidance is expected to change classification in the Company's consolidated financial position with no impact on the results of operations or cash flows.

In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-use Software, which provides guidance on the accounting for fees paid by a customer in a cloud computing arrangement as it relates to whether the arrangement includes the sale or license of software. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016, with early adoption permitted. The guidance can be applied retrospectively or prospectively. This new guidance is expected to change classification in the Company's consolidated financial position with no impact on the results of operations or cash flows.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which requires measurement of in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2016, which means the first quarter of Ply Gem's fiscal year 2017. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments ("ASU No. 2015-16"),which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. The Company is still evaluating the impact that its adoption of ASU 2015-16 will have on its consolidated financial position or results of operations.

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INCOME TAXES tax uncertainties (Details) $ in Millions	9 Months Ended
	Oct. 03, 2015 USD ($)
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Period Increase (Decrease)	$ (0.5)
Interest Expense [Member]
Income Tax Contingency [Line Items]
Unrecognized Tax Benefits, Period Increase (Decrease)	$ (0.3)

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Textuals (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Dec. 31, 2014
Initial Public Offering [Line Items]
Impaired Intangible Asset, Facts and Circumstances Leading to Impairment	no indicators		no indicators
Tax receivable agreement adjustment	$ (1,712)	$ 13,988	$ 13,467	$ 14,419
Foreign Currency Cash Flow Hedge Liability at Fair Value	1,439		1,439		$ 1,294
Unamortized Debt Issuance Expense	$ 21,500		$ 21,500		$ 23,800
Common stock, shares outstanding (in shares)	68,103,547		68,103,547		67,877,587
Goodwill, Impaired, Facts and Circumstances Leading to Impairment	no indicators		no indicators
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	100,000	100,000	100,000	100,000
Purchase Commitment, Remaining Minimum Amount Committed	$ 16,800		$ 16,800
Inventory Valuation Reserves	9,100		9,100		$ 10,600
Decrease (increase) in inventory reserve			1,500
Amortization of debt issuance costs	800	$ 800	2,300	$ 2,800
Foreign Currency Transaction Gain (Loss), Realized	1,069	766	(2,101)	(517)
Currency translation adjustment	$ (4,121)	$ (5,009)	$ (11,291)	$ (5,366)

XML

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION, Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Dec. 31, 2014	Dec. 31, 2013
Proceeds from (Repayments of) Lines of Credit	$ 20,000	$ 20,000
Current Assets:
Cash and cash equivalents	43,278	26,782	$ 33,162	$ 69,801
Accounts receivable, net	267,995		187,679
Inventories:
Raw materials	75,667		76,467
Work in process	22,119		34,378
Finished goods	67,387		69,068
Total inventory	165,173		179,913
Prepaid expenses and other current assets	28,044		31,808
Deferred income taxes	8,542		7,680
Total current assets	513,032		440,242
Investments in subsidiaries	0		0
Property and Equipment, at cost:
Land	8,164		7,967
Buildings and improvements	65,928		65,658
Machinery and equipment	374,182		368,719
Total property and equipment	448,274		442,344
Less accumulated depreciation	(292,257)		(281,377)
Total property and equipment, net	156,017		160,967
Other Assets:
Intangible assets, net	135,356		147,709
Goodwill	479,330		476,112
Intercompany note receivable	0		0
Other	27,405		29,545
Total other assets	642,091		653,366
Total Assets	(1,311,140)		(1,254,575)
Less current portion of long-term debt	4,300		4,300
Current Liabilities:
Accounts payable	93,378		84,164
Accrued expenses	150,743		147,325
Total current liabilities	248,421		235,789
Deferred income taxes	20,305		20,806
Intercompany note payable	0		0
tax receivable agreement payable	24,384		10,917
Other long-term liabilities	85,438		94,814
Long-term debt, less current portion	$ 1,013,362		$ 988,917
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	$ 0		$ 0
Common stock	681		679
Additional paid-in-capital	748,965		745,140
(Accumulated deficit) retained earnings	(799,288)		(822,512)
Accumulated other comprehensive loss	(31,128)		(19,975)
Total stockholders' deficit	(80,770)		(96,668)
Total Liabilities and Stockholder's Deficit	(1,311,140)		(1,254,575)
Guarantor Ply Gem Holdings, Inc. [Member]
Proceeds from (Repayments of) Lines of Credit	0	0
Current Assets:
Cash and cash equivalents	0	0	0	0
Accounts receivable, net	0		0
Inventories:
Raw materials	0		0
Work in process	0		0
Finished goods	0		0
Total inventory	0		0
Prepaid expenses and other current assets	0		0
Deferred income taxes	0		0
Total current assets	0		0
Investments in subsidiaries	(80,770)		(96,668)
Property and Equipment, at cost:
Land	0		0
Buildings and improvements	0		0
Machinery and equipment	0		0
Total property and equipment	0		0
Less accumulated depreciation	0		0
Total property and equipment, net	0		0
Other Assets:
Intangible assets, net	0		0
Goodwill	0		0
Intercompany note receivable	0		0
Other	0		0
Total other assets	0		0
Total Assets	(80,770)		(96,668)
Less current portion of long-term debt	0		0
Current Liabilities:
Accounts payable	0		0
Accrued expenses	0		0
Total current liabilities	0		0
Deferred income taxes	0		0
Intercompany note payable	0		0
tax receivable agreement payable	0		0
Other long-term liabilities	0		0
Long-term debt, less current portion	$ 0		$ 0
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	$ 0		$ 0
Common stock	681		679
Additional paid-in-capital	748,965		745,140
(Accumulated deficit) retained earnings	(799,288)		(822,512)
Accumulated other comprehensive loss	(31,128)		(19,975)
Total stockholders' deficit	(80,770)		(96,668)
Total Liabilities and Stockholder's Deficit	(80,770)		(96,668)
Issuer Ply Gem Industries, Inc. [Member]
Proceeds from (Repayments of) Lines of Credit	20,000	20,000
Current Assets:
Cash and cash equivalents	36,695	12,151	23,555	57,800
Accounts receivable, net	0		0
Inventories:
Raw materials	0		0
Work in process	0		0
Finished goods	0		0
Total inventory	0		0
Prepaid expenses and other current assets	952		1,044
Deferred income taxes	0		0
Total current assets	37,647		24,599
Investments in subsidiaries	(184,858)		64,046
Property and Equipment, at cost:
Land	0		0
Buildings and improvements	0		0
Machinery and equipment	3,394		2,794
Total property and equipment	3,394		2,794
Less accumulated depreciation	(1,658)		(2,083)
Total property and equipment, net	1,736		711
Other Assets:
Intangible assets, net	0		0
Goodwill	0		0
Intercompany note receivable	1,104,510		953,510
Other	23,804		26,784
Total other assets	1,128,314		980,294
Total Assets	(982,839)		(941,558)
Less current portion of long-term debt	4,300		4,300
Current Liabilities:
Accounts payable	159		239
Accrued expenses	13,371		19,907
Total current liabilities	17,830		24,446
Deferred income taxes	$ 0		0
Intercompany note payable			0
tax receivable agreement payable	$ 24,384		10,917
Other long-term liabilities	8,033		13,946
Long-term debt, less current portion	$ 1,013,362		$ 988,917
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	$ 0		$ 0
Common stock	681		679
Additional paid-in-capital	748,965		745,140
(Accumulated deficit) retained earnings	(799,288)		(822,512)
Accumulated other comprehensive loss	(31,128)		(19,975)
Total stockholders' deficit	(80,770)		(96,668)
Total Liabilities and Stockholder's Deficit	(982,839)		(941,558)
Guarantor Subsidiaries [Member]
Proceeds from (Repayments of) Lines of Credit	0	0
Current Assets:
Cash and cash equivalents	(11,258)	(3,427)	(5,845)	(4,970)
Accounts receivable, net	236,079		153,791
Inventories:
Raw materials	69,630		65,772
Work in process	20,312		32,653
Finished goods	51,233		54,415
Total inventory	141,175		152,840
Prepaid expenses and other current assets	22,153		25,840
Deferred income taxes	8,542		7,680
Total current assets	396,691		334,306
Investments in subsidiaries	0		0
Property and Equipment, at cost:
Land	7,387		7,085
Buildings and improvements	61,295		60,211
Machinery and equipment	353,604		348,951
Total property and equipment	422,286		416,247
Less accumulated depreciation	(281,738)		(271,156)
Total property and equipment, net	140,548		145,091
Other Assets:
Intangible assets, net	117,203		123,333
Goodwill	449,492		442,233
Intercompany note receivable	0		0
Other	3,601		2,761
Total other assets	570,296		568,327
Total Assets	(1,107,535)		(1,047,724)
Less current portion of long-term debt	0		0
Current Liabilities:
Accounts payable	77,261		66,452
Accrued expenses	118,239		110,290
Total current liabilities	195,500		176,742
Deferred income taxes	14,941		14,719
Intercompany note payable	998,056		844,258
tax receivable agreement payable	0		0
Other long-term liabilities	73,494		76,923
Long-term debt, less current portion	$ 0		$ 0
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	$ 0		$ 0
Common stock	0		0
Additional paid-in-capital	437,178		602,801
(Accumulated deficit) retained earnings	(597,096)		(653,181)
Accumulated other comprehensive loss	(14,538)		(14,538)
Total stockholders' deficit	(174,456)		(64,918)
Total Liabilities and Stockholder's Deficit	(1,107,535)		(1,047,724)
Non-Guarantor Subsidiary [Member]
Proceeds from (Repayments of) Lines of Credit	0	0
Current Assets:
Cash and cash equivalents	17,841	18,058	15,452	16,971
Accounts receivable, net	31,916		33,888
Inventories:
Raw materials	6,037		10,695
Work in process	1,807		1,725
Finished goods	16,154		14,653
Total inventory	23,998		27,073
Prepaid expenses and other current assets	4,939		4,924
Deferred income taxes	0		0
Total current assets	78,694		81,337
Investments in subsidiaries	0		0
Property and Equipment, at cost:
Land	777		882
Buildings and improvements	4,633		5,447
Machinery and equipment	17,184		16,974
Total property and equipment	22,594		23,303
Less accumulated depreciation	(8,861)		(8,138)
Total property and equipment, net	13,733		15,165
Other Assets:
Intangible assets, net	18,153		24,376
Goodwill	29,838		33,879
Intercompany note receivable	0		0
Other	0		0
Total other assets	47,991		58,255
Total Assets	(140,418)		(154,757)
Less current portion of long-term debt	0		0
Current Liabilities:
Accounts payable	15,958		17,473
Accrued expenses	19,133		17,128
Total current liabilities	35,091		34,601
Deferred income taxes	5,364		6,087
Intercompany note payable	106,454		109,252
tax receivable agreement payable	0		0
Other long-term liabilities	3,911		3,945
Long-term debt, less current portion	$ 0		$ 0
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	$ 0		$ 0
Common stock	0		0
Additional paid-in-capital	21,521		16,010
(Accumulated deficit) retained earnings	(21,142)		(9,701)
Accumulated other comprehensive loss	(10,781)		(5,437)
Total stockholders' deficit	(10,402)		872
Total Liabilities and Stockholder's Deficit	(140,418)		(154,757)
Consolidating Adjustments [Member]
Proceeds from (Repayments of) Lines of Credit	0	0
Current Assets:
Cash and cash equivalents	0	$ 0	0	$ 0
Accounts receivable, net	0		0
Inventories:
Raw materials	0		0
Work in process	0		0
Finished goods	0		0
Total inventory	0		0
Prepaid expenses and other current assets	0		0
Deferred income taxes	0		0
Total current assets	0		0
Investments in subsidiaries	(265,628)		(160,714)
Property and Equipment, at cost:
Land	0		0
Buildings and improvements	0		0
Machinery and equipment	0		0
Total property and equipment	0		0
Less accumulated depreciation	0		0
Total property and equipment, net	0		0
Other Assets:
Intangible assets, net	0		0
Goodwill	0		0
Intercompany note receivable	(1,104,510)		(953,510)
Other	0		0
Total other assets	(1,104,510)		(953,510)
Total Assets	838,882		792,796
Less current portion of long-term debt	0		0
Current Liabilities:
Accounts payable	0		0
Accrued expenses	0		0
Total current liabilities	0		0
Deferred income taxes	0		0
Intercompany note payable	(1,104,510)		(953,510)
tax receivable agreement payable	0		0
Other long-term liabilities	0		0
Long-term debt, less current portion	$ 0		$ 0
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	$ 0		$ 0
Common stock	(681)		(679)
Additional paid-in-capital	(1,207,664)		(1,363,951)
(Accumulated deficit) retained earnings	1,417,526		1,485,394
Accumulated other comprehensive loss	56,447		39,950
Total stockholders' deficit	265,628		160,714
Total Liabilities and Stockholder's Deficit	$ 838,882		$ 792,796

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Oct. 03, 2015

Accounting Policies [Abstract]

Schedule of property and equpiment

 Depreciation of property and equipment are provided on a straight-line basis over estimated useful lives, which are generally as follows: 

Buildings and improvements	10-37 years
Machinery and equipment, including leases	3-15 years
Leasehold improvements	Term of lease or useful life, whichever is shorter

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

A summary of the recorded asset included in the accompanying condensed consolidated balance sheets is as follows:

(Amounts in thousands)
	October 3, 2015		December 31, 2014
Foreign currency hedge (included in other current assets)	$	1,439	$	1,294

Summary of fair value liabilities

The Company’s population of recurring financial assets and liabilities subject to fair value measurements and the necessary disclosures are as follows:

					Quoted Prices in Active Markets		Significant Other		Significant
(Amounts in thousands)			Fair		for Identical		Observable		Unobservable
	Carrying		Value		Assets		Inputs		Inputs
Description	Value		Total		(Level 1)		(Level 2)		(Level 3)
Liabilities:
Senior Notes-6.50%	$	650,000	$	601,813	$	601,813	$	—	$	—
Term Loan Facility	423,550		417,197		—		417,197		—
As of October 3, 2015:	$	1,073,550	$	1,019,010	$	601,813	$	417,197	$	—
Liabilities:
Senior Notes-6.50%	$	650,000	$	617,500	$	617,500	$	—	$	—
Term Loan Facility	426,775		404,369		—		404,369		—
As of December 31, 2014	$	1,076,775	$	1,021,869	$	617,500	$	404,369	$	—

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($) $ in Thousands	Oct. 03, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Allowance for Doubtful Accounts Receivable, Current	$ 4,744	$ 4,164

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GOODWILL (Tables)

9 Months Ended

Oct. 03, 2015

Goodwill [Line Items]

Schedule of Goodwill [Table Text Block]

A goodwill rollforward for 2015 is included in the table below:

	Windows and			Siding, Fencing
(Amounts in thousands)	Doors			and Stone
Balance as of December 31, 2014
Goodwill	$	459,837		$	466,275
Accumulated impairment losses	(327,773		)	(122,227		)
	$	132,064		$	344,048
Currency translation adjustments	(1,301		)	(2,739		)
Simonton purchase accounting adjustments	(510		)	—
Canyon Stone acquisition	—			7,768
Balance as of October 3, 2015
Goodwill	458,026			471,304
Accumulated impairment losses	(327,773		)	(122,227		)
	$	130,253		$	349,077

Schedule of reporting unit goodwill balances

The reporting unit goodwill balances were as follows as of October 3, 2015 and December 31, 2014:

(Amounts in thousands)
	October 3, 2015		December 31, 2014
Siding, Fencing and Stone	$	349,077	$	344,048
Windows and Doors	130,253		132,064
	$	479,330	$	476,112

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ACQUISITIONS

9 Months Ended

Oct. 03, 2015

ACQUISITIONS [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

ACQUISITIONS

Simonton

On September 19, 2014, Ply Gem completed an acquisition for cash consideration of approximately $130.0 million to acquire the capital stock of Fortune Brands Windows Inc., and its direct and indirect wholly owned subsidiaries Simonton Building Products LLC, Simonton Industries, Inc., Simonton Windows, Inc., and SimEx, Inc. Fortune Brand Windows Inc.'s name has subsequently been changed to Simonton Windows & Doors, Inc. (“Simonton”). Simonton is a premier repair and remodeling window company with leading brand recognition within this market providing the Company with long-term value. Simonton manufactures top quality vinyl windows and doors and provides industry-leading customization options, delivery times, and customer service. Simonton has manufacturing plant locations in California, Illinois, and West Virginia with administrative offices in Ohio. The Simonton acquisition balances the Company's end window market mix by moving the Company's market exposure to approximately 65% and 35% for the new construction and repair and remodeling markets, respectively, as compared to the approximate 80% and 20% legacy split for the Company’s window business. By incorporating the Company’s siding net sales, the Company’s market exposure is approximately 53% and 47% for the new construction and repair and remodeling markets, respectively. Simonton strategically fits into the Company’s existing footprint and broadens its service offering to existing and new customers within the building product industry. The Company accounted for the transaction as an acquisition in accordance with the provisions of Accounting Standards Codification 805, Business Combinations, which results in a new valuation for the assets and liabilities of Simonton based upon fair values as of the acquisition date.

During the three and nine months ended October 3, 2015, purchase price adjustments with a net increase of $2.0 million and a net decrease of $0.5 million, respectively, to goodwill were recorded in connection with warranties and other liabilities. During the three months ended October 3, 2015, the Company increased the warranty liability $0.2 million, other accrued liabilities $1.7 million and decreased other assets $0.1 million based on information regarding circumstances that existed prior to the acquisition in 2014. The Company finalized the acquisition accounting adjustments during the third quarter of 2015.

The Company determined the fair value of the tangible and intangible assets and the liabilities acquired, and recorded goodwill based on the excess of fair value of the acquisition consideration over such fair value, as follows:

(Amounts in thousands)
Cash	$	(856	)
Accounts receivable	37,134
Inventories	17,742
Prepaid expenses and other current assets	2,133
Property and equipment	53,655
Intangible assets	62,170
Goodwill	58,681
Other assets	426
Accounts payable and accrued expenses	(49,916		)
Deferred income taxes	(10,462		)
Other liabilities	(40,707		)
	$	130,000

The $58.7 million of goodwill is allocated to the Windows and Doors segment and none of the goodwill is expected to be deductible for tax purposes. The goodwill is attributable to the workforce of the acquired business and the synergies expected to be realized from the acquisition.

Canyon Stone

On May 29, 2015, Ply Gem completed an acquisition for cash consideration of approximately $21.0 million to acquire substantially all of the assets of Canyon Stone Inc. ("Canyon Stone"), a manufacturer and distributor of stone veneer and accessories in the United States. Canyon Stone has manufacturing facilities in Olathe, Kansas and Youngsville, North Carolina. The purchase agreement also includes contingent consideration in the form of potential earn-out payments of up to $1.0 million based on Canyon Stone's earnings for fiscal years 2015 through 2017. This acquisition expanded the Company's stone veneer manufacturing footprint across the United States as it compliments the existing Ply Gem Stone manufacturing facility in Middleburg, Pennsylvania. The Company accounted for the transaction as an acquisition in accordance with the provisions of Accounting Standards Codification 805, Business Combinations, which results in a new valuation for the assets and liabilities of Canyon Stone based upon fair values as of the acquisition date.

Since the acquisition was completed on May 29, 2015, the final acquisition accounting allocation remains subject to further adjustments. The specific accounts subject to ongoing purchase accounting adjustments include accounts receivable, inventories, prepaid expenses and other current assets, property and equipment, goodwill, intangibles, accounts payable, accrued expenses, and other liabilities. Therefore, the measurement date remains open as of October 3, 2015, and the preliminary acquisition accounting allocation detailed below is subject to adjustment. The Company anticipates completing these acquisition accounting adjustments during 2015.

The Company determined the fair value of the tangible and intangible assets and the liabilities acquired, and recorded goodwill based on the excess of fair value of the acquisition consideration over such fair values, as follows:

(Amounts in thousands)
Accounts receivable	$	3,559
Inventories	712
Prepaid expenses and other current assets	41
Property and equipment	2,019
Intangible assets	9,300
Goodwill	7,768
Accounts payable, accrued expenses and other long-term liabilities	(2,399		)
	$	21,000

The $7.8 million of goodwill was allocated to the Siding, Fencing and Stone segment and the goodwill is expected to be deductible for tax purposes. The Company has recognized a liability of approximately $0.7 million as the estimated acquisition date fair value of the earn-out. This amount is included within other long-term liabilities in the condensed consolidated balance sheet. Any change in the fair value of the contingent consideration subsequent to the acquisition date will be recognized in earnings in the period of change.     

For the three and nine months ended October 3, 2015, Canyon Stone contributed net sales of approximately $7.9 million and $10.8 million, respectively, which has been included within the Company’s condensed consolidated statement of operations and comprehensive income (loss). If the Canyon Stone acquisition would have occurred at the beginning of 2014, the Company’s consolidated net sales would have been $1,420.5 million and $1,134.3 million for the nine months ended October 3, 2015 and September 27, 2014, respectively, with net income of $23.6 million and a net loss of $16.4 million for the nine months ended October 3, 2015 and September 27, 2014, respectively.

During the nine months ended October 3, 2015, the Company incurred $0.3 million of acquisition-related costs for Canyon Stone. These expenses are included in selling, general, and administrative expense in the Company’s condensed consolidated statement of operations and comprehensive income (loss) within the Siding, Fencing and Stone segment.

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CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 03, 2015	Dec. 31, 2014	Sep. 27, 2014	Dec. 31, 2013
Current Assets:
Cash and cash equivalents	$ 43,278	$ 33,162	$ 26,782	$ 69,801
Accounts receivable, less allowances of $4,744 and $4,164, respectively	267,995	187,679
Inventories:
Raw materials	75,667	76,467
Work in process	22,119	34,378
Finished goods	67,387	69,068
Total inventory	165,173	179,913
Prepaid expenses and other current assets	28,044	31,808
Deferred income taxes	8,542	7,680
Total current assets	513,032	440,242
Property and Equipment, at cost:
Land	8,164	7,967
Buildings and improvements	65,928	65,658
Machinery and equipment	374,182	368,719
Total property and equipment	448,274	442,344
Less accumulated depreciation	(292,257)	(281,377)
Total property and equipment, net	156,017	160,967
Other Assets:
Intangible assets, net	135,356	147,709
Goodwill	479,330	476,112
Other	27,405	29,545
Total other assets	642,091	653,366
Total Assets	1,311,140	1,254,575
Current Liabilities:
Accounts payable	93,378	84,164
Accrued expenses	150,743	147,325
Less current portion of long-term debt	4,300	4,300
Total current liabilities	248,421	235,789
Deferred income taxes	20,305	20,806
Payable to related parties pursuant to tax receivable agreement	24,384	10,917
Other long-term liabilities	85,438	94,814
Long-term debt, less current portion	$ 1,013,362	$ 988,917
Commitments and contingencies
Stockholders' Deficit:
Preferred stock $0.01 par, 50,000,000 shares authorized, none issued and outstanding	$ 0	$ 0
Common stock $0.01 par, 250,000,000 shares authorized, 68,103,547 and 67,877,587 issued and outstanding, respectively	681	679
Additional paid-in-capital	748,965	745,140
Accumulated deficit	(799,288)	(822,512)
Accumulated other comprehensive loss	(31,128)	(19,975)
Total stockholders' deficit	(80,770)	(96,668)
Total Liabilities and Stockholder's Deficit	$ 1,311,140	$ 1,254,575

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SEGMENT INFORMATION

9 Months Ended

Oct. 03, 2015

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by management in deciding how to allocate resources and in assessing performance.  The Company has two reportable segments:  (1) Siding, Fencing and Stone and (2) Windows and Doors.

The income before income taxes of each segment includes the revenue generated on transactions involving products within that segment less identifiable expenses.  Unallocated income and expenses include items which are not directly attributed to or allocated to either of the Company’s reporting segments.  Such items include interest, legal costs, corporate payroll, and unallocated finance, and accounting expenses. Unallocated corporate assets include cash and certain receivables.  Interest expense is presented net of interest income.

Following is a summary of the Company’s segment information:

	For the three months ended						For the nine months ended
(Amounts in thousands)	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Net sales
Siding, Fencing and Stone	$	255,069		$	244,416		$	650,084		$	609,419
Windows and Doors	275,815			193,432			759,182			507,105
	$	530,884		$	437,848		$	1,409,266		$	1,116,524
Operating earnings (loss)
Siding, Fencing and Stone	$	51,122		$	44,756		$	106,118		$	89,484
Windows and Doors	18,798			3,773			11,960			(17,793		)
Unallocated	(7,919		)	(6,602		)	(24,463		)	(18,116		)
	$	62,001		$	41,927		$	93,615		$	53,575
	Total assets as of
	October 3, 2015			December 31, 2014
Total assets
Siding, Fencing and Stone	$	719,469		$	673,543
Windows and Doors	528,484			528,938
Unallocated	63,187			52,094
	$	1,311,140		$	1,254,575

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Document and Entity Information - shares	9 Months Ended
	Oct. 03, 2015	Nov. 09, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	PLY GEM HOLDINGS INC
Entity Central Index Key	0001284807
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Oct. 03, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Trading Symbol	PGEM
Amendment Flag	false
Entity Common Stock, Shares Outstanding		68,103,547

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RELATED PARTY TRANSACTIONS

9 Months Ended

Oct. 03, 2015

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

During March 2015, the Company entered into new retention agreements with the Company's Chief Executive Officer and Chief Financial Officer for $3.0 million and $1.3 million, respectively. These retention agreements incentivize these individuals for three years and will require the Company to make cumulative payments of $4.3 million on December 31, 2017, if both individuals remain employed in their current positions on that date.

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CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 03, 2015	Dec. 31, 2014
Current Assets:
Allowance for Doubtful Accounts Receivable, Current	$ 4,744	$ 4,164
Stockholders' Deficit:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	68,103,547	67,877,587
Common stock, shares outstanding (in shares)	68,103,547	67,877,587

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PENSION PLANS

9 Months Ended

Oct. 03, 2015

Compensation and Retirement Disclosure [Abstract]

PENSION PLANS

PENSION PLANS

The Company has two pension plans, the Ply Gem Group Pension Plan and the MW Manufacturers, Inc. Retirement Plan. The Company’s net periodic benefit expense for the combined plans for the periods indicated consists of the following components:

(Amounts in thousands)	For the three months ended						For the nine months ended
	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Service cost	$	—		$	—		$	—		$	—
Interest cost	502			476			1,505			1,427
Expected return on plan assets	(577		)	(567		)	(1,732		)	(1,702		)
Amortization of loss	296			116			889			347
Net periodic benefit expense	$	221		$	25		$	662		$	72

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LONG-TERM DEBT

9 Months Ended

Oct. 03, 2015

Debt Instrument [Line Items]

Long-term Debt [Text Block]

LONG-TERM DEBT

Long-term debt in the accompanying condensed consolidated balance sheets at October 3, 2015 and December 31, 2014 consists of the following:

(Amounts in thousands)
	October 3, 2015			December 31, 2014
Senior secured asset based revolving credit facility	$	20,000		$	—
Term Loan due 2021, net of unamortized early tender premium
and discount of $29,174 and $32,518, respectively	394,376			394,257
6.50% Senior notes due 2022, net of unamortized early tender premium
and discount of $46,714 and $51,040, respectively	603,286			598,960
	$	1,017,662		$	993,217
Less current portion of long-term debt	(4,300		)	(4,300		)
	$	1,013,362		$	988,917

2014 Debt Transactions

On January 30, 2014, Ply Gem Industries completed an offering of $500.0 million aggregate principal amount of 6.50% Senior Notes due 2022 (the “6.50% Senior Notes”) and also entered into a $430.0 million senior secured term loan facility due 2021 (the “Term Loan Facility”). The approximate $927.9 million of net proceeds from the issuance of the 6.50% Senior Notes and the borrowings under the Term Loan Facility were used by Ply Gem Industries to purchase all of its 8.25% Senior Secured Notes due 2018 (the "8.25% Senior Secured Notes") and 9.375% Senior Notes due 2017 (the "9.375% Senior Notes") tendered in the tender offers described below, to satisfy and discharge the remaining obligations under the indentures governing the 8.25% Senior Secured Notes and 9.375% Senior Notes and to pay related fees and expenses.

On January 30, 2014, Ply Gem Industries purchased approximately $705.9 million of the outstanding 8.25% Senior Secured Notes in a tender offer at a price of $1,067.50 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. On January 30, 2014, Ply Gem Industries also purchased approximately $94.7 million of the outstanding 9.375% Senior Notes in a tender offer at a price of $1,108.36 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. As a result, Ply Gem Industries paid aggregate consideration of approximately $780.2 million for the tendered 8.25% Senior Secured Notes, including a tender premium of approximately $47.6 million, and paid aggregate consideration of approximately $107.6 million for the tendered 9.375% Senior Notes, including a tender premium of approximately $10.3 million.

On March 1, 2014, pursuant to the terms of the indenture governing the 8.25% Senior Secured Notes, Ply Gem Industries redeemed the remaining approximate $50.1 million principal amount of the outstanding 8.25% Senior Secured Notes at a redemption price equal to 106.188% of the principal amount thereof, plus accrued and unpaid interest. On February 16, 2014, pursuant to the terms of the indenture governing the 9.375% Senior Notes, Ply Gem Industries redeemed the remaining approximate $1.3 million principal amount of the outstanding 9.375% Senior Notes at a redemption price equal to 100% of the principal amount plus the “make-whole” premium required under the indenture governing the 9.375% Senior Notes (which equated to 110.179% of the principal amount thereof), plus accrued and unpaid interest. As of March 1, 2014, there were no longer outstanding any 8.25% Senior Secured Notes. As of February 16, 2014, there were no longer outstanding any 9.375% Senior Notes.

On September 19, 2014, Ply Gem Industries issued an additional $150.0 million aggregate principal amount of its 6.50% Senior Notes (“Senior Tack-on Notes”).  The net proceeds from the transaction were approximately $138.0 million after deducting $10.1 million for the debt discount and $1.9 million in transaction costs. The proceeds from the issuance of the Senior Tack-on Notes and approximately $3.1 million of cash on hand were used by Ply Gem Industries to fund Ply Gem Industries’ purchase of all the issued and outstanding shares of common stock of Simonton, to pay fees and expenses related to the offering of the Senior Tack-on Notes and the Simonton acquisition and for general corporate purposes, including the repayment of approximately $10.0 million of indebtedness under the Company’s senior secured asset-backed revolving credit facility (the "ABL Facility"). The additional $150.0 million of 6.50% Senior Tack-on Notes have the same terms and covenants as the original $500.0 million of 6.50% Senior Notes due 2022. The 6.50% Senior Notes originally issued in January 2014 and the Senior Tack-on Notes issued in September 2014 (collectively, the "6.50% Senior Notes") will mature on February 1, 2022 and bear interest at the rate of 6.50%.

In November 2014, the Company exercised a portion of the accordion feature under the ABL Facility for $50.0 million, or 50% of the eligible accordion, increasing the ABL Facility from $250.0 million to $300.0 million to account for the additional borrowing base acquired from Simonton.

6.50% Senior Notes due 2022

On January 30, 2014, Ply Gem Industries issued $500.0 million of 6.50% Senior Notes at par. On September 19, 2014, Ply Gem Industries issued an additional $150.0 million of 6.50% Senior Notes at a discount of approximately $10.1 million. Interest accrues at 6.50% per annum and is paid semi-annually on February 1 and August 1 of each year. The 6.50% Senior Notes will mature on February 1, 2022.

Prior to February 1, 2017, Ply Gem Industries may redeem up to 40% of aggregate principal amount of the 6.50% Senior Notes with the net cash proceeds from certain equity offerings at a redemption price equal to 106.50% of the aggregate principal amount of the 6.50% Senior Notes to be redeemed, plus accrued and unpaid interest, if any, provided that at least 50% of the aggregate principal amount of the 6.50% Senior Notes remains outstanding after the redemption. Prior to February 1, 2017, Ply Gem Industries may redeem the 6.50% Senior Notes, in whole or in part, at a redemption price equal to 100% of the principal amount plus a “make-whole” premium plus accrued and unpaid interest, if any. At any time on or after February 1, 2017, Ply Gem Industries may redeem the 6.50% Senior Notes, in whole or in part, at declining redemption prices set forth in the indenture governing the 6.50% Senior Notes plus, in each case, accrued and unpaid interest, if any, to the redemption date. The effective interest rate for the 6.50% Senior Notes is 8.48% after considering each of the different interest expense components of this instrument, including the coupon payment and the deferred debt issuance costs.

The 6.50% Senior Notes are fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis by Ply Gem Holdings and all of the wholly-owned domestic subsidiaries of Ply Gem Industries (the “Guarantors”).  The indenture governing the 6.50% Senior Notes contains certain covenants that limit the ability of Ply Gem Industries and its restricted subsidiaries to incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem their stock, make loans and investments, sell assets, incur certain liens, enter into agreements restricting their ability to pay dividends, enter into transactions with affiliates, and consolidate, merge or sell assets.  In particular, Ply Gem Industries and its restricted subsidiaries may not incur additional debt (other than permitted debt (as defined in the indenture) in limited circumstances) unless, after giving effect to such incurrence, the consolidated interest coverage ratio of Ply Gem Industries would be at least 2.00 to 1.00.  

In the absence of satisfying the consolidated interest coverage ratio test, Ply Gem Industries and its restricted subsidiaries may only incur additional debt under certain circumstances, including, but not limited to, debt under credit facilities (as defined in the indenture) (x) in an amount not to exceed the greater of (a) $350.0 million and (b) the borrowing base (as defined in the indenture) and (y) in an amount not to exceed the greater of (A) $575.0 million and (B) the aggregate amount of indebtedness (as defined in the indenture) that that would cause the consolidated secured debt ratio (as defined in the indenture) to be equal to 4.00 to 1.00; purchase money indebtedness in an aggregate amount not to exceed the greater of (x) $35.0 million and (y) 10% of consolidated net tangible assets (as defined in the indenture) at any one time outstanding; debt of foreign subsidiaries in an aggregate amount not to exceed the greater of (x) $60.0 million and (y) 15% of consolidated net tangible assets (as defined in the indenture) at any one time outstanding; debt pursuant to a general basket in an aggregate amount at any one time outstanding not to exceed the greater of (x) $75.0 million and (y) 20% of consolidated net tangible assets; and the refinancing of debt under certain circumstances.

On September 5, 2014, Ply Gem Industries completed an exchange offer with respect to the 6.50% Senior Notes issued in January 2014 to exchange $500.0 million 6.50% Senior Notes registered under the Securities Act for $500.0 million of the issued and outstanding 6.50% Senior Notes. Upon completion of the exchange offer, all $500.0 million of issued and outstanding 6.50% Senior Notes were registered under the Securities Act.  On January 23, 2015, Ply Gem Industries completed an exchange offer with respect to the Senior Tack-on Notes issued in September 2014 to exchange $150.0 million Senior Tack-on Notes registered under the Securities Act for $150.0 million of the issued and outstanding Senior Tack-on Notes. Upon completion of the exchange offer, all $150.0 million of issued and outstanding Senior Tack-on Notes were registered under the Securities Act. 

Term Loan Facility due 2021

On January 30, 2014, Ply Gem Industries entered into a credit agreement governing the terms of its new $430.0 million Term Loan Facility. Ply Gem Industries borrowed $430.0 million under the Term Loan Facility on January 30, 2014, with an original discount of approximately $2.2 million, yielding proceeds of approximately $427.9 million. The Term Loan Facility will mature on January 30, 2021. The Term Loan Facility requires scheduled quarterly payments in an aggregate annual amount equal to 1.00% of the original aggregate principal amount of the Term Loan Facility with the balance due at maturity. Interest on outstanding borrowings under the Term Loan Facility are paid quarterly.

Borrowings under the Term Loan Facility bear interest at a rate equal to, at Ply Gem Industries’ option, either (a) a base rate determined by reference to the highest of (i) the prime rate of the administrative agent under the credit agreement, (ii) the federal funds rate plus 0.50% and (iii) the adjusted LIBO rate for a one-month interest period plus 1.00% or (b) a LIBO rate determined by reference to the cost of funds for eurocurrency deposits in dollars for the interest period relevant to such borrowing, adjusted for certain additional costs, subject to a 1.00% floor, plus, in each case, an applicable margin of 3.00% for any eurocurrency loan and 2.00% for any alternate base rate loan. As of October 3, 2015, the Company's interest rate on the Term Loan Facility was 4.00%. The effective interest rate for the Term Loan is 7.00% after considering each of the different interest expense components of this instrument, including the coupon payment, the deferred debt issuance costs and the original issue discount.

The Term Loan Facility allows Ply Gem Industries to request one or more incremental term loan facilities in an aggregate amount not to exceed the greater of (x) $140.0 million and (y) an amount such that Ply Gem Industries’ consolidated senior secured debt ratio (as defined in the credit agreement), on a pro forma basis, does not exceed 3.75 to 1.00, in each case, subject to certain conditions and receipt of commitments by existing or additional financial institutions or institutional lenders. Ply Gem Industries may voluntarily repay outstanding loans under the Term Loan Facility at any time without premium or penalty, other than customary “breakage” costs with respect to LIBOR loans.

The Term Loan Facility requires Ply Gem Industries to prepay outstanding term loans, subject to certain exceptions, with: (i) 50% (which percentage will be reduced to 25% if our consolidated senior secured debt ratio is equal or less than 2.50 to 1.00 but greater than 2.00 to 1.00 and to 0% if our consolidated senior secured debt ratio is equal to or less than 2.00 to 1.00) of our annual excess cash flow (as defined in the credit agreement), to the extent such excess cash flow exceeds $15.0 million, commencing with the fiscal year ending December 31, 2015; (ii) 100% of the net cash proceeds of certain non-ordinary course asset sales or certain insurance and condemnation proceeds, in each case subject to certain exceptions and reinvestment rights; and (iii) 100% of the net cash proceeds of certain issuances of debt, other than proceeds from debt permitted under the Term Loan Facility.

The Term Loan Facility is secured on a first-priority lien basis by the stock of Ply Gem Industries and by substantially all of the assets (other than the assets securing the obligations under the ABL Facility, which primarily consist of accounts receivable, inventory, cash, deposit accounts, securities accounts, chattel paper, contract rights, instruments, documents related thereto and proceeds of the foregoing) of Ply Gem Industries and the Guarantors that are subsidiaries of Ply Gem Industries and on a second-priority lien basis by the assets that secure the ABL Facility.

The Term Loan Facility includes negative covenants, subject to certain exceptions, that are substantially the same as the negative covenants in the 6.50% Senior Notes and also does not contain any restrictive financial covenants. The Term Loan Facility also restricts the ability of Ply Gem Industries’ subsidiaries to enter into agreements restricting their ability to grant liens to secure the Term Loan Facility and contains a restriction on changes in fiscal year.

8.25% Senior Secured Notes due 2018

On February 11, 2011, Ply Gem Industries issued $800.0 million of 8.25% Senior Secured Notes at par.  Ply Gem Industries used the proceeds to purchase approximately $724.6 million principal amount of its outstanding 11.75% Senior Secured Notes in a tender offer, to redeem the remaining approximate $0.4 million principal amount of outstanding 11.75% Senior Secured Notes, and to pay related fees and expenses.  A portion of the early tender premiums and the original unamortized discount on the 11.75% Senior Secured Notes was recorded as a discount on the $800.0 million of 8.25% Senior Secured Notes given that the 2011 transaction was predominately accounted for as a loan modification.  On February 15, 2012, Ply Gem Industries issued an additional $40.0 million principal amount of its 8.25% Senior Secured Notes. The 8.25% Senior Secured Notes would have matured on February 15, 2018 and bore interest at the rate of 8.25% per annum.   Interest was paid semi-annually on February 15 and August 15 of each year. The 8.25% Senior Secured Notes were fully and unconditionally and jointly and severally guaranteed on a senior secured basis by the Guarantors. The 8.25% Senior Secured Notes and the related guarantees were secured on a first-priority lien basis by substantially all of the assets (other than the assets securing our obligations under the ABL Facility, which consist of accounts receivable, inventory, cash, deposit accounts, securities accounts, chattel paper and proceeds of the foregoing and certain assets such as contract rights, instruments and documents related thereto) of Ply Gem Industries and the Guarantors and on a second-priority lien basis by the assets that secure the ABL Facility.

On January 30, 2014, Ply Gem Industries purchased approximately $705.9 million of its outstanding 8.25% Senior Secured Notes in a tender offer at a price of $1,067.50 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. On January 30, 2014, Ply Gem Industries irrevocably deposited with the trustee for the 8.25% Senior Secured Notes an amount sufficient to satisfy and discharge its obligations under the 8.25% Senior Secured Notes and the indenture. On March 1, 2014, Ply Gem Industries redeemed the remaining outstanding principal amount of the 8.25% Senior Secured Notes at a redemption price equal to 106.188% of the principal amount thereof, plus accrued and unpaid interest to the redemption date. Following the redemption, there were no longer any 8.25% Senior Secured Notes outstanding.

Senior Secured Asset Based Revolving Credit Facility due 2018

On November 1, 2013, Ply Gem Holdings, Inc., Ply Gem Industries, Inc., Ply Gem Canada, Gienow Canada Inc., and Mitten Inc. (together with Ply Gem Canada and Gienow, the “Canadian Borrowers”) entered into an amended and restated credit agreement governing the ABL Facility. Among other things, the amendment and restatement of the credit agreement governing the ABL Facility: (i) increased the overall facility to $250.0 million from $212.5 million, (ii) increased the accordion feature to $100.0 million, (iii) reduced the applicable margin for borrowings under the ABL Facility to a range from 1.50% to 2.00% for Eurodollar rate loans, depending on availability, and (iv) increased the amount available under the ABL Facility to Ply Gem Industries' Canadian subsidiaries to $50.0 million. In November 2014, the Company exercised a portion of the accordion feature under the ABL Facility for $50.0 million, or 50% of the eligible accordion, increasing the ABL Facility from $250.0 million to $300.0 million to account for the additional borrowing base acquired from Simonton. Under the terms of the ABL Facility, the Company has the ability to further increase the revolving commitments up another $50.0 million to $350.0 million, subject to certain terms and conditions. All outstanding loans under the ABL Facility are due and payable in full on November 1, 2018. Under the ABL Facility, $250.0 million is available to Ply Gem Industries and $50.0 million is available to the Canadian Borrowers.

Borrowings under the ABL Facility bear interest at a rate per annum equal to, at Ply Gem Industries’ option, either (a) a base rate determined by reference to the higher of (1) the corporate base rate of the administrative agent under the ABL Facility and (2) the federal funds rate plus 0.5% or (b) a Eurodollar rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, in each case plus an applicable margin.  The initial applicable margin for borrowings under the ABL Facility was 0.75% for base rate loans and 1.75% for Eurodollar rate loans.  The applicable margin for borrowings under the ABL Facility is subject to step ups and step downs based on average excess availability under the ABL Facility.  Swingline loans bear interest at a rate per annum equal to the base rate plus the applicable margin.

In addition to paying interest on outstanding principal under the ABL Facility, Ply Gem Industries is required to pay a commitment fee in respect of the unutilized commitments thereunder, which fee will be determined based on utilization of the ABL Facility (increasing when utilization is low and decreasing when utilization is high) multiplied by a commitment fee rate determined by reference to average excess availability under the ABL Facility. The commitment fee rate during any fiscal quarter is 0.375% when average excess availability is greater than $100.0 million for the preceding fiscal quarter and 0.25% when average availability is less than or equal to $100.0 million for the preceding fiscal quarter.  Ply Gem Industries must also pay customary letter of credit fees equal to the applicable margin on Eurodollar loans and agency fees.   As of October 3, 2015, the Company’s interest rate on the ABL Facility was approximately 1.80%.  The ABL Facility requires that if (a) excess availability is less than the greater of (x) 10.0% of the lower of the borrowing base and the aggregate commitments and (y) $17.5 million or (b) any event of default has occurred and is continuing, Ply Gem Industries must comply with a minimum fixed charge coverage ratio test of 1.0 to 1.0.  If the excess availability under the ABL Facility is less than the greater of (a) 12.5% of the lesser of the borrowing base and the aggregate commitments and (b) $22.5 million ($20.0 million for the months of January, February, March and April) for a period of 5 consecutive days or an event of default has occurred and is continuing, all cash from Ply Gem Industries material deposit accounts (including all concentration accounts) will be swept daily into a collection account controlled by the administrative agent under the ABL Facility and used to repay outstanding loans and cash collateralize letters of credit.

All obligations under the ABL Facility are unconditionally guaranteed by Ply Gem Holdings and substantially all of Ply Gem Industries’ existing and future, direct and indirect, wholly owned domestic subsidiaries.  All obligations under the ABL Facility, and the guarantees of those obligations, are secured, subject to certain exceptions, by substantially all of the assets of Ply Gem Industries and the guarantors, including a first-priority security interest in personal property consisting of accounts receivable, inventory, cash, deposit accounts, and certain related assets and proceeds of the foregoing and a second-priority security interest in, and mortgages on, substantially all of Ply Gem Industries’ and the Guarantors’ material owned real property and equipment and all assets that secure the Term Loan Facility on a first-priority basis.  In addition to being secured by the collateral securing the obligations of Ply Gem Industries under the domestic collateral package, the obligations of the Canadian Borrowers, which are borrowers under the Canadian sub-facility under the ABL Facility, are also secured by a first-priority security interest in substantially all of the assets of such Canadian subsidiaries, plus additional mortgages in Canada, and a pledge by Ply Gem Industries of the remaining 35% of the equity interests of the Canadian Borrowers pledged only to secure the Canadian sub-facility.

The ABL Facility contains certain covenants that limit Ply Gem Industries’ ability and the ability of Ply Gem Industries’ subsidiaries to incur additional indebtedness, pay dividends or make other distributions or repurchase or redeem their stock, make loans and investments, sell assets, incur certain liens, enter into transactions with affiliates, and consolidate, merge or sell assets.  In particular, Ply Gem Industries is permitted to incur additional debt in limited circumstances, including, but not limited to, permitted subordinated indebtedness in an aggregate principal amount not to exceed $112.5 million at any time outstanding (subject to the ability to incur additional permitted subordinated debt provided that immediately after giving effect to such incurrence excess availability is more than 25% of the lesser of the total borrowing base and the aggregate commitments and Ply Gem Industries is in pro forma compliance with the fixed charge coverage ratio), purchase money indebtedness in an aggregate amount not to exceed $25.0 million at any one time outstanding, debt of foreign subsidiaries (other than Canadian subsidiaries) in an aggregate amount not to exceed $10.0 million at any one time outstanding, indebtedness in connection with the tax receivable agreement in an aggregate principal amount not to exceed $100.0 million, and the refinancing of debt under certain circumstances.  

On November 5, 2015, Ply Gem Industries entered into a second amended and restated ABL Facility. Among other things, the second amended and restated ABL Facility: (i) increased the overall facility to $350.0 million, (ii) provided an accordion feature of $50.0 million, and (iii) established the applicable margin for borrowings under the ABL Facility to a range of 1.25% to 2.00% for Eurodollar rate loans, depending on availability. All outstanding loans under the second amended and restated ABL Facility are due and payable in full on November 5, 2020.

As of October 3, 2015, Ply Gem Industries had approximately $273.2 million of contractual availability and approximately $247.2 million of borrowing base availability under the ABL Facility, reflecting $20.0 million of borrowings outstanding and approximately $6.8 million of letters of credit and priority payables reserves.

9.375% Senior Notes due 2017

On September 27, 2012, Ply Gem Industries issued $160.0 million of 9.375% Senior Notes at par. Ply Gem Industries used the proceeds of the offering, together with cash on hand, to satisfy and discharge its obligations under the 13.125% Senior Subordinated Notes and the indenture governing the 13.125% Senior Subordinated Notes. The 9.375% Senior Notes would have matured on April 15, 2017 and bore interest at the rate of 9.375% per annum. Interest was paid semi-annually on April 15 and October 15 of each year. The 9.375% Senior Notes were unsecured and fully and unconditionally and jointly and severally guaranteed on a senior unsecured basis by the Guarantors.

On January 30, 2014, Ply Gem Industries purchased approximately $94.7 million of the outstanding 9.375% Senior Notes at a tender price of $1,108.36 per $1,000 principal amount, which included an early tender payment of $30.00 per $1,000 principal amount, plus accrued and unpaid interest. On January 30, 2014, Ply Gem Industries irrevocably deposited with the trustee for the 9.375% Senior Notes an amount sufficient to satisfy and discharge its obligations under the 9.375% Senior Notes and the indenture. On February 16, 2014, Ply Gem Industries redeemed the remaining outstanding principal amount of the 9.375% Senior Notes at a redemption price equal to 100% of the principal amount plus the “make-whole” premium required under the indenture (which equated to 110.179% of the principal amount thereof), plus accrued and unpaid interest. Following the redemption, there were no longer any 9.375% Senior Notes outstanding.

Loss on debt modification or extinguishment

As a result of the January 2014 6.50% Senior Notes and Term Loan Facility issuance and the tender, redemption, and repurchase of the 8.25% Senior Secured Notes and the 9.375% Senior Notes (the "January 2014 Refinancing") during the nine months endedSeptember 27, 2014, the Company performed an analysis to determine the proper accounting treatment for the January 2014 Refinancing. Specifically, the Company evaluated each creditor with ownership in both the new 6.50% Senior Notes and/or Term Loan Facility debt instruments and the old 8.25% Senior Secured Notes and/or 9.375% Senior Notes to determine whether the transaction should be accounted for as a modification or an extinguishment of debt as it relates to each individual creditor. The Company had approximately $34.4 million of unamortized debt discount and $14.9 million of unamortized debt issuance costs associated with the 8.25% Senior Secured Notes and 9.375% Senior Notes, of which approximately $4.8 million and $2.1 million, respectively, were expensed as a loss on extinguishment of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014 as a result of the January 2014 Refinancing.

The Company also incurred an early tender premium of approximately $61.1 million in conjunction with this transaction, of which approximately $52.6 million was recorded as a discount on the 6.50% Senior Notes and the Term Loan Facility and approximately $8.5 million was expensed as a loss on extinguishment of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014. The Company also expensed approximately $0.3 million for the third party fees for the 8.25% Senior Secured Notes and 9.375% Senior Notes as a result of the January 2014 Refinancing for the nine months endedSeptember 27, 2014. The Company also incurred approximately $14.7 million of costs associated with the 6.50% Senior Notes and Term Loan Facility, of which approximately $9.2 million was recorded as debt issuance costs and approximately $5.5 million was expensed as a loss on modification of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014. Additionally, the Company incurred an original issue discount of approximately $2.2 million for the Term Loan Facility, of which approximately $1.9 million was recorded as a discount and approximately $0.3 million was expensed as a loss on extinguishment of debt in the condensed consolidated statement of operations and comprehensive income (loss) for the nine months endedSeptember 27, 2014.

Based on the January 2014 Refinancing, the Company recognized a loss on debt modification or extinguishment of approximately $21.4 million for the nine months endedSeptember 27, 2014, as summarized in the table below. There was no loss on debt modification or extinguishment in the three and nine months ended October 3, 2015 or the three months ended September 27, 2014.

(Amounts in thousands)	For the nine months ended
	October 3, 2015		September 27, 2014
Loss on extinguishment of debt:
Tender premium	$	—	$	(8,493	)
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized discount	—		(4,773		)
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized debt issuance costs	—		(2,067		)
Term Loan Facility unamortized discount	—		(255		)
	—		(15,588		)
Loss on modification of debt:
Third party fees for 8.25% Senior Secured Notes and 9.375% Senior Notes	—		(302		)
Third party fees for 6.50% Senior Notes and Term Loan Facility	—		(5,474		)
	—		(5,776		)
Total loss on modification or extinguishment of debt	$	—	$	(21,364	)

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ACQUISITIONS (Tables)

9 Months Ended

Oct. 03, 2015

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

(Amounts in thousands)
Cash	$	(856	)
Accounts receivable	37,134
Inventories	17,742
Prepaid expenses and other current assets	2,133
Property and equipment	53,655
Intangible assets	62,170
Goodwill	58,681
Other assets	426
Accounts payable and accrued expenses	(49,916		)
Deferred income taxes	(10,462		)
Other liabilities	(40,707		)
	$	130,000

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RESTRUCTURING (Notes)

9 Months Ended

Oct. 03, 2015

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Activities Disclosure [Text Block]

During 2013, the Company announced that it will realign production across two manufacturing facilities in Calgary, Alberta, Canada, in an effort to improve the Company’s overall operating efficiency. The two manufacturing facilities resulted from the Company’s acquisition of Gienow, completed in April 2013, combined with the pre-existing manufacturing facility of Ply Gem Canada. These realignment plans include shifting the majority of the vinyl window and door production into Gienow’s manufacturing facility in Calgary, Alberta, Canada, while maintaining wood window and door production in Ply Gem Canada’s manufacturing facility also located in Calgary, Alberta, Canada. In connection with this realignment, distribution was realigned across Gienow and Ply Gem Canada distribution centers in Western Canada.

Production began to be realigned during 2013, with the majority completed by March 2014. In connection with these plans, the Company originally expected to incur pre-tax exit and restructuring cash and non-cash costs totaling approximately $2.9 million, which includes approximately $0.2 million for contract termination costs, approximately $1.1 million of personnel-related costs and approximately $1.6 million of other facilities-related costs.

The following table summarizes the Company's restructuring activity for the nine months ended October 3, 2015:

(Amounts in thousands)	Accrued as of		Adjustments			Expensed		Cash payments			Accrued as of
	December 31, 2014		during 2015			during 2015		during 2015			October 3, 2015
Western Canada
Severance costs	$	283	$	(13	)	$	805	$	(1,075	)	$	—
Contract terminations	129		(16		)	—		—			113
	$	412	$	(29	)	$	805	$	(1,075	)	$	113

The adjustments incurred in the nine months ended October 3, 2015 are related to the foreign currency translation impact of the related balances during the period.

The Company recorded restructuring costs in selling, general and administrative expenses in the condensed consolidated statements of operations in the periods and in the segments shown in the following table:

	For the three months ended				For the nine months ended
(Amounts in thousands)	October 3, 2015		September 27, 2014		October 3, 2015		September 27, 2014
Siding, Fencing and Stone	$	—	$	—	$	—	$	—
Windows and Doors	—		819		805		3,012
	$	—	$	819	$	805	$	3,012

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INCOME TAXES

9 Months Ended

Oct. 03, 2015

Income Tax Disclosure [Abstract]

INCOME TAXES

 INCOME TAXES

Effective tax rate

Under FASB Accounting Standards Codification 740-270, Income Taxes - Interim Reporting, each interim period is considered an integral part of the annual period and tax expense is measured using an estimated annual effective rate. Estimates of the annual effective tax rate at the end of interim periods are, of necessity, based on evaluation of possible future events and transactions and may be subject to subsequent refinement or revision. The Company calculates its quarterly tax provision consistent with the guidance provided by ASC 740-270, whereby the Company forecasts its estimated annual effective tax rate then applies that rate to its year-to-date pre-tax book income (loss). In addition, we exclude jurisdictions with a projected loss for the year or the year-to-date loss where we cannot recognize a tax benefit from our estimated annual effective tax rate. The impact of such an exclusion could result in a higher or lower effective tax rate during a particular quarter, based upon the mix and timing of actual earnings versus annual projections. In addition to the tax resulting from applying the estimated annual effective tax rate to pre-tax income (loss), the Company includes certain items treated as discrete events to arrive at an estimated effective tax rate. Future changes in the forecasted annual income (loss) projections, tax rate changes, or discrete tax items could result in significant adjustments to quarterly income tax expense (benefit) in future periods in accordance with ASC 740-270.

For the nine months endedOctober 3, 2015, the Company's estimated effective income tax rate was approximately 7.1%, which varied from the statutory rate primarily due to state income tax expense, valuation allowances, tax contingencies, and foreign income taxes. The effective tax rate including discrete items was 8.2%. The tax expense for the three months ended October 3, 2015 was approximately $2.1 million. The tax benefit for the nine months ended October 3, 2015 was approximately $1.8 million.

Valuation allowance

As of October 3, 2015, a full valuation allowance has been provided against certain deferred tax assets as it is presently deemed more likely than not that the benefit of such net tax assets will not be utilized. All of the Company's subsidiaries, excluding Mitten, are in a full valuation allowance position as of October 3, 2015.

Due to recent cumulative losses incurred by the Company, management did not rely upon projections of future taxable income in assessing the recoverability of deferred tax assets. The Company currently has book goodwill of approximately $31.0 million that is not amortized, which results in a deferred tax liability of approximately $6.8 million at October 3, 2015. Therefore, the reversal of deferred tax liabilities related to this goodwill is not considered a source of future taxable income in assessing the realization of its deferred tax assets. The Company continues to evaluate its ability to realize the net deferred tax assets and its estimates are subject to change.

Tax uncertainties

Despite the Company’s belief that its tax return positions are consistent with applicable tax laws, the Company believes that certain positions could be challenged by taxing authorities. The Company’s tax reserves reflect the difference between the tax benefit claimed on tax returns and the amount recognized in the condensed consolidated financial statements. These reserves have been established based on management’s assessment as to potential exposure attributable to permanent differences and interest applicable to both permanent and temporary differences. The tax reserves are reviewed periodically and adjusted in light of changing facts and circumstances, such as progress of tax audits, lapse of applicable statutes of limitations and changes in tax law. Certain income tax returns are currently under examination by various taxing authorities. During the nine months endedOctober 3, 2015, the Company decreased its tax contingency reserve by approximately $0.5 million. Tax reserves of approximately $0.7 million were reversed in addition to the reversal of $0.3 million of interest during the nine months endedOctober 3, 2015. Additionally, approximately $0.4 million of penalties and $0.2 million of interest expense were recorded on the remaining uncertain tax positions during the nine months endedOctober 3, 2015.

Tax Receivable Agreement

On May 22, 2013, the Company entered into a Tax Receivable Agreement (the “Tax Receivable Agreement”) with PG ITR Holdco, L.P. (the “Tax Receivable Entity”). The Tax Receivable Agreement generally provides for the payment by the Company to the Tax Receivable Entity of 85% of the amount of cash savings, if any, in U.S. federal, state and local income tax that the Company actually realizes in periods ending after the IPO as a result of (i) net operating loss ("NOL") carryovers from periods (or portions thereof) ending before January 1, 2013, (ii) deductible expenses attributable to the transactions related to the IPO and (iii) deductions related to imputed interest deemed to be paid by the Company as a result of or attributable to payments under the Tax Receivable Agreement. The term of the Tax Receivable Agreement will continue until all such benefits have been utilized or expired. The Company will retain the benefit of the remaining 15% of these tax savings. The Tax Receivable Agreement will obligate the Company to make payments to the Tax Receivable Entity generally equal to 85% of the applicable cash savings that is actually realized as a result of utilizing NOL carryovers once the tax returns are filed for that respective tax year.

The Company estimates that the total anticipated amount of future payments under the Tax Receivable Agreement will be approximately $100.0 million assuming no material changes in the relevant tax law, that the Company earns sufficient taxable income to utilize the net operating loss carrying forwards, and that utilization of such tax attributes is not subject to limitation under Section 382 of the Internal Revenue Code of 1986, as amended (the "Code") as the result of an “ownership change”. It is possible that future transactions or events or changes in estimates could increase or decrease the actual tax benefits realized from these tax attributes and the corresponding Tax Receivable Agreement payments and liability. Future changes in the Company's full valuation allowance position including the reversal of all or a portion of the Company's valuation allowance will increase the Tax Receivable Agreement liability up to the $100.0 million estimate.

As of October 3, 2015, the Company had a long-term liability of approximately $24.4 million for the amount due pursuant to the Tax Receivable Agreement related to NOL carryovers. The Company recognized a $1.7 million benefit and $14.0 million expense for this liability during the three months ended October 3, 2015 and September 27, 2014, respectively. The Company recognized an expense of $13.5 million and $14.4 million for this liability during the nine months endedOctober 3, 2015 and September 27, 2014, respectively.

Other

As of October 3, 2015, the Company has not established U.S. deferred taxes on unremitted earnings of the Company’s foreign subsidiaries. Notwithstanding the provisions within the American Jobs Creation Act of 2004, the Company continues to consider these amounts to be permanently invested.

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STOCK-BASED COMPENSATION (Details) $ / shares in Units, $ in Thousands				3 Months Ended		9 Months Ended		12 Months Ended
	Dec. 28, 2014 member_of_board_of_directors shares	May. 14, 2014 shares	Mar. 04, 2014 shares	Oct. 03, 2015 USD ($) $ / shares shares	Sep. 27, 2014 USD ($)	Oct. 03, 2015 USD ($) $ / shares shares	Sep. 27, 2014 USD ($)	Dec. 31, 2014 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Vested options (in shares)				2,138,571		2,138,571
Vesting percentage (in hundredths)						100.00%
Total unrecognized compensation expense | $				$ 1,300		$ 1,300
Weighted average recognition period of unrecognized compensation expense						1 year 9 months 23 days
Restricted Stock [Abstract]
Compensation expense | $				$ 400	$ 600	$ 1,400	$ 1,500
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Stock options outstanding at beginning of period (in shares)						2,749,064
Granted						247,808
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares						$ 12.62
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period						(225,960)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares						$ 9.75
Forfeited or expired (in shares)						(197,119)
Stock options outstanding at end of period (in shares)				2,573,793		2,573,793		2,749,064
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Weighted average exercise price at beginning of period (in dollars per share) | $ / shares						$ 13.38
Weighted average exercise price at end of period (in dollars per share) | $ / shares				$ 13.70		$ 13.70		$ 13.38
Weighted average remaining contractual term						5 years 8 months 15 days		5 years 6 months
Restricted Stock [Abstract]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares						$ 0.00
Restricted Stock [Member] | Board of Directors [Member]
Restricted Stock [Abstract]
Restricted shares		5,240	3,523
Compensation expense | $				$ 72	$ 76	$ 228	$ 182
Time period over which award will be expensed		8 months	10 months
Restricted Stock [Member] | December Award [Member]
Restricted Stock [Abstract]
Independent members of the Board of Directors receiving award | member_of_board_of_directors	4
Restricted Stock [Member] | December Award [Member] | Board of Directors [Member]
Restricted Stock [Abstract]
Restricted shares	23,944

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Oct. 03, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Indemnifications

In connection with the Ply Gem acquisition, in which Ply Gem Industries was acquired from Nortek, Inc. (“Nortek”) in February 2004, Nortek has agreed to indemnify the Company for certain liabilities as set forth in the stock purchase agreement governing the Ply Gem acquisition.  In the event Nortek is unable to satisfy amounts due under these indemnifications, the Company would be liable.  The Company believes that Nortek has the financial capacity to honor its indemnification obligations and therefore does not anticipate incurring any losses related to liabilities indemnified by Nortek under the stock purchase agreement.  A receivable related to this indemnification has been recorded in other long-term assets of approximately $2.1 million and $2.9 million at October 3, 2015 and December 31, 2014, respectively.  As of October 3, 2015 and December 31, 2014, the Company has recorded liabilities related to these indemnifications of approximately $0.5 million and $0.5 million, respectively, in current liabilities and $1.6 million and $2.4 million, respectively, in long-term liabilities, consisting of the following:

(Amounts in thousands)	October 3, 2015		December 31, 2014
Product claim liabilities	$	138	$	138
Multi-employer pension plan withdrawal liability	1,304		2,094
Other	665		644
	$	2,107	$	2,876

Warranty claims

The Company sells a number of products and offers a number of warranties.  The specific terms and conditions of these warranties vary depending on the product sold.  The Company estimates the costs that may be incurred under their warranties and records a liability for such costs at the time of sale.  Factors that affect the Company’s warranty liabilities include the number of units sold, historical and anticipated rates of warranty claims, cost per claim and new product introduction.  The Company assesses the adequacy of the recorded warranty claims and adjusts the amounts as necessary.  As of October 3, 2015 and December 31, 2014, warranty liabilities of approximately $18.1 million and $18.3 million, respectively, have been recorded in current liabilities and approximately $58.6 million and $66.1 million, respectively, have been recorded in long term liabilities. The decrease in the warranty liabilities from December 31, 2014 relates to Simonton purchase accounting adjustments.

Changes in the Company’s short-term and long-term warranty liabilities are as follows:

	For the three months ended						For the nine months ended
(Amounts in thousands)	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Balance, beginning of period	$	76,977		$	40,397		$	84,423		$	42,466
Acquisition - Canyon	—			—			100			—
Acquisition adjustments - Simonton	241			5,370			(7,761		)	5,370
Warranty expense during period	7,463			2,897			16,055			8,209
Settlements made during period	(7,925		)	(5,148		)	(16,061		)	(12,529		)
Balance, end of period	$	76,756		$	43,516		$	76,756		$	43,516

Environmental

The Company is subject to United States and Canadian federal, state, provincial and local laws and regulations relating to pollution and the protection of the environment, including those governing emissions to air, discharges to water, use, storage and transport of hazardous materials, storage, treatment and disposal of waste, remediation of contaminated sites, and protection of worker health and safety. From time to time, the Company's facilities are subject to investigation by governmental regulators. In addition, the Company has been identified as one of many potentially responsible parties for contamination present at certain offsite locations to which it or its predecessors are alleged to have sent hazardous materials for recycling or disposal. The Company may be held liable, or incur fines or penalties, in connection with such requirements or liabilities for, among other things, releases of hazardous substances occurring on or emanating from current or formerly owned or operated properties or any associated offsite disposal location, or for known or newly-discovered contamination at any of the Company's properties from activities conducted by us or previous occupants. The amount of any liability, fine or penalty may be material, and certain environmental laws impose strict, and under certain circumstances joint and several, liability for the cost of addressing releases of hazardous substances upon certain classes of persons, including site owners or operators and persons that disposed or arranged for the disposal of hazardous substances at contaminated sites.

MW Manufacturers Inc. (“MW”), a subsidiary of MWM Holding, Inc., entered into an Administrative Order on Consent (the “Consent Order”), effective September 12, 2011, with the United States Environmental Protection Agency (“EPA”), Region III, under Section 3008(h) of the Resource Conservation and Recovery Act (RCRA), with respect to its Rocky Mount, Virginia property.  During 2011, as part of the Consent Order, MW provided the EPA, among other things, a RCRA Facility Investigation Workplan (the “Workplan”) as well as a preliminary cost estimate of approximately $1.8 million for the predicted assessment, remediation and monitoring activities to be conducted pursuant to the Consent Order over the remediation period, which is currently estimated through 2023. During 2012, the EPA approved the Workplan, and MW is currently implementing the Workplan. The Company has recorded approximately $0.3 million of this environmental liability within current liabilities and approximately $1.2 million within other long-term liabilities in the Company’s condensed consolidated balance sheet at October 3, 2015 and December 31, 2014.  The Company will adjust this environmental remediation liability in future periods, if necessary, as further information develops or circumstances change.

Certain liabilities with respect to this contamination relate to the previous closure of an underground storage tank and were assumed by U.S. Industries, Inc., pursuant to its indemnity obligation under the stock purchase agreement dated August 11, 1995, whereby U.S. Industries, Inc. sold the stock of MW to FPI Acquisition Corp. (“Fenway Partners”). As the successor-in-interest of Fenway Partners, the Company is similarly indemnified by U.S. Industries, Inc.  The Company’s ability to seek indemnification from U.S. Industries, Inc. is, however, limited by the terms and limits of the indemnity as well as the strength of U.S. Industries, Inc.’s financial condition, which could change in the future.  As of October 3, 2015, no recovery has been recognized on the Company’s condensed consolidated balance sheet, but the Company will actively pursue this indemnity in future periods and will recognize future recoveries in the period in which they become probable.

The State of Nebraska is investigating certain groundwater contamination in northern York, Nebraska, comprised primarily of volatile organic compounds (VOC) (predominantly trichloroethene (TCE)). In December 2013, the EPA announced its proposal to add this groundwater contamination site to the Superfund National Priorities List (NPL) after it was referred to the EPA by the State of Nebraska. Sampling was conducted at the Kroy Building Products, Inc. (“Kroy”) facility in York, Nebraska during the first quarter of 2010. In February 2015, the EPA sent a request for information pursuant to Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), and Kroy has responded to this request for information. Given the preliminary stage of this matter, the Company has not recorded a liability for this matter in its condensed consolidated balance sheet as of October 3, 2015. Alcan Aluminum Corporation (“Alcan”) has assumed the obligation to indemnify the Company with respect to certain liabilities for environmental contamination of the Kroy facility occurring prior to 1994. Notwithstanding this indemnity, however, under applicable Federal and State laws, Kroy, and Ply Gem as its parent, could be held liable for all or part of the costs associated with the matter under certain circumstances. Moreover, the ability of Kroy and Ply Gem to seek indemnification may be limited by the terms and limits of the indemnity as well as the strength of Alcan’s financial condition, which could change in the future.

The Company is currently involved in environmental proceedings involving Gienow Canada Inc. (f/k/a Ply Gem Canada, Inc.) and Alberta Environment (arising from subsurface contamination discovered at our Calgary, Alberta property) for which the Company has a $0.1 million liability included in its condensed consolidated balance sheet, and the Company may in the future be subject to environmental proceedings involving Thermal-Gard, Inc. (arising from groundwater contamination in Punxsutawney, Pennsylvania), Mastic Home Exteriors, Inc. (“MHE”) (relating to a closed landfill site in Sidney, Ohio as well as participating as a potentially responsible party in nine contaminated sites in Indiana, Ohio and South Carolina), and Simonton (relating to closed lagoons and certain contamination in Paris, Illinois as well as certain contamination associated with certain 7-Eleven convenience food stores). Under the stock purchase agreement governing the MHE acquisition, Alcoa Securities Corporation and Alcoa, Inc. are to indemnify the Company for certain environmental liabilities in excess of $2.5 million including liabilities relating to the landfill site in Sidney, Ohio and the nine contaminated sites in Indiana, Ohio and South Carolina. Under the stock purchase agreement governing the Simonton acquisition, Fortune Brands Windows & Doors, Inc., is to indemnify the Company for any environmental claims associated with the 7-Eleven convenience food stores. The Company's ability to seek indemnification or enforce these and other obligations is, however, limited by the strength of the financial condition of the indemnitor or responsible party, which could change in the future, as well as the terms and limits of any such indemnities or obligations.

Based on current information, the Company is not aware of any compliance obligations, claims, releases or investigations that will have a material adverse effect on our results of operations, cash flows or financial position except as otherwise disclosed in the Company's condensed consolidated financial statements. However, there can be no guarantee that previously known or newly-discovered matters or any inability to enforce our available indemnification rights against previous owners of the Company or its subsidiaries will not result in material costs or liabilities. While the purchase agreements governing certain of our acquisitions provide that the sellers will indemnify us, subject to certain limitations, for certain environmental liabilities, our ability to seek indemnification from the respective sellers is limited by various factors, including the financial condition of the indemnitor or responsible party as well as by the terms and limits of such indemnities or obligations. As a result, there can be no assurance that we could receive any indemnification from the sellers, and any related environmental liabilities, costs or penalties could have a material adverse effect on our financial condition and results of operations.

Self-insured risks

The Company maintains a broad range of insurance policies which include general liability insurance coverage and workers compensation. These insurance policies protect the Company against a portion of the risk of loss from claims. However, the Company retains a portion of the overall risk for such claims through its self-insured per occurrence and aggregate retentions, deductibles, and claims in excess of available insurance policy limits. The Company's general liability insurance includes coverage for certain damages arising out of product design and manufacturing defects. The Company's insurance coverage is generally subject to a per occurrence retention.

The Company reserves for costs associated with claims, as well as incurred but not reported losses (“IBNR”), based on an outside actuarial analysis of its historical claims. These estimates make up a significant portion of the Company's liability and are subject to a high degree of uncertainty due to a variety of factors, including changes in type of claims, claims reporting and resolution patterns, frequency and timing of claims, third party recoveries, estimates of claim values, claims management expenses (including legal fees and expert fees), insurance industry practices, the regulatory environment, and legal precedent. Adjustments to estimated reserves are recorded in the period in which the change in estimate occurs.

Litigation

During the past several years, the Company incurred increased litigation expense primarily related to the claims discussed below. The Company believes it has valid defenses to the claims discussed below and will vigorously defend all such claims; however, litigation is subject to many uncertainties and there cannot be any assurance that the Company will ultimately prevail or, in the event of an unfavorable outcome or settlement of litigation, that the ultimate liability would not be material and would not have a material adverse effect on the business, results of operations, cash flows or financial position of the Company.

In John Gulbankian v. MW Manufacturers, Inc. (“Gulbankian”), a purported class action filed in March 2010 in the United States District Court for the District of Massachusetts (the “Court”), plaintiffs, on behalf of themselves and all others similarly situated, alleged damages as a result of the defective design and manufacture of certain MW vinyl clad windows. In Eric Hartshorn and Bethany Perry v. MW Manufacturers, Inc. (“Hartshorn”), a purported class action filed in July 2012 in the Court, plaintiffs, on behalf of themselves and all others similarly situated, alleged damages as a result of the defective design and manufacture of certain MW vinyl clad windows. On April 22, 2014, plaintiffs in both the Gulbankian and Hartshorn cases filed a Consolidated Amended Class Action Complaint, making similar claims against all MW vinyl clad windows.

MW entered into a settlement agreement with plaintiffs as of April 18, 2014 to settle both the Gulbankian and Hartshorn cases on a nationwide basis (the “Vinyl Clad Settlement Agreement”). The Vinyl Clad Settlement Agreement provides that this settlement applies to any and all MW vinyl clad windows manufactured from January 1, 1987 through May 23, 2014, and provides for a cash payment for eligible consumers submitting qualified claims showing, among other requirements, certain damage to their MW vinyl clad windows. The period for submitting qualified claims is the later of: (i) May 28, 2016, or (ii) the last day of the warranty period for the applicable window. On December 29, 2014, the Court granted final approval of this settlement, as well as MW’s payment of attorneys' fees and costs to plaintiffs' counsel in the amount of

$2.5 million, issuing a Final Approval Order, Final Judgment, and Order of Dismissal with Prejudice (the "Final Approval Order"). A notice of appeal of the Final Approval Order (the “Appeal”) was given by certain objectors to the settlement, and on May 6, 2015, MW entered into a settlement agreement with, among others, the objectors to fully and finally resolve their claims, including the dismissal of Karl Memari v. Ply Gem Prime Holdings, Inc. et al., another lawsuit seeking class certification with respect to MW's vinyl clad windows, making the Vinyl Clad Settlement Agreement final and binding on the parties. The Company and MW deny all liability in the settlements and with respect to the facts and claims alleged. The Company, however, is aware of the substantial burden, expense, inconvenience and distraction of continued litigation, and therefore agreed to settle these matters.

As a result of the Vinyl Clad Settlement Agreement, the Company recognized a $5.0 million expense during the nine months ended September 27, 2014 within selling, general, and administrative expenses in the Company’s condensed consolidated statement of operations and comprehensive income (loss) in the Company's Windows and Doors segment. It is possible that the Company may incur costs in excess of the recorded amounts; however, the Company currently expects that the total net cost will not exceed $5.0 million. As of October 3, 2015, approximately $1.6 million of this liability is currently outstanding with $0.6 million as a current liability within accrued expenses and $0.9 million as a noncurrent liability within other long-term liabilities in the Company’s condensed consolidated balance sheet.

In Anthony Pagliaroni et al. v. Mastic Home Exteriors, Inc. and Deceuninck North America, LLC, a purported class action filed in January 2012 in the United States District Court for the District of Massachusetts, plaintiffs, on behalf of themselves and all others similarly situated, allege damages as a result of the defective design and manufacture of Oasis composite deck and railing, which was manufactured by Deceuninck North America, LLC (“Deceuninck”) and sold by Mastic Home Exteriors, Inc. (“MHE”). The plaintiffs seek a variety of relief, including (i) economic and compensatory damages, (ii) treble damages, (iii) punitive damages, and (iv) attorneys' fees and costs of litigation. The damages sought in this action have not yet been quantified. The hearing regarding plaintiffs’ motion for class certification was held on March 10, 2015. The Court denied plaintiffs’ motion for class certification on September 22, 2015, and on October, 6, 2015, plaintiffs filed a petition for interlocutory appeal of the denial of class certification to the U.S. Court of Appeals for the First Circuit. The Court of Appeals has not yet ruled on plaintiffs’ petition for appeal. Deceuninck, as the manufacturer of Oasis deck and railing, has agreed to indemnify MHE for certain liabilities related to this claim pursuant to the sales and distribution agreement, as amended, between Deceuninck and MHE. MHE's ability to seek indemnification from Deceuninck is, however, limited by the terms and limits of the indemnity as well as the strength of Deceuninck's financial condition, which could change in the future.

In The Muhler Company, Inc. v. Ply Gem Prime Holdings, Inc. et al., a lawsuit filed in April 2011 in the United States District Court for the District of South Carolina, Charleston Division (the “Court”), plaintiff alleges unfair competition and trade practices. The plaintiff seeks a variety of relief, including (i) consequential damages, (ii) treble damages, (iii) punitive damages, and (iv) attorneys' fees and costs of litigation. In April 2013, the Court granted the Company's motion for summary judgment with respect to the federal Lanham Act claims. In May 2013, the plaintiff filed a notice of appeal to the U.S. Court of Appeals for the Fourth Circuit with respect to the summary judgment granted on the federal Lanham Act claims, and the Fourth Circuit denied interlocutory appeal. With the summary judgment granted on the federal Lanham Act claims, only state unfair competition and trade practices claims remain. In April 2015, the Court heard arguments on the Company's motion for summary judgment with respect to such claims, and on July 13, 2015, the Court granted the Company’s motion. On July 27, 2015, the plaintiff filed an appeal with the U.S. Court of Appeals for the Fourth Circuit with respect to the Court’s ruling. The U.S. Court of Appeals for the Fourth Circuit has yet to rule on the plaintiff’s appeal. The damages sought in this action have not yet been quantified.

In rePly Gem Holdings, Inc. Securities Litigation isa purported federal securities class action filed on May 19, 2014 in the United States District Court for the Southern District of New York against Ply Gem Holdings, Inc., several of its directors and officers, and the underwriters associated with the Company’s IPO. It is filed on behalf of all persons or entities, other than the defendants, who purchased the common shares of the Company pursuant and/or traceable to the Company’s IPO and seeks remedies under Sections 11 and 15 of the Securities Act of 1933, alleging that the Company’s Form S-1 registration statement was negligently prepared and materially inaccurate, containing untrue statements of material fact and omitting material information which was required to be disclosed. The plaintiffs seek a variety of relief, including (i) damages together with interest thereon and (ii) attorneys’ fees and costs of litigation. On October 14, 2014, Strathclyde Pension Fund was certified as lead plaintiff, and class counsel was appointed. On February 13, 2015 the defendants filed their motion to dismiss the complaint, on April 14, 2015 the lead plaintiff filed its opposition to that motion to dismiss, and on May 14, 2015 the defendants filed their reply brief in support of their motion to dismiss. On September 29, 2015, the Court granted defendants’ motion to dismiss, but ruled that plaintiff could file an amended complaint. On November 6, 2015, plaintiff filed an amended complaint. The damages sought in this action have not yet been quantified. Pursuant to the Underwriting Agreement, dated May 22, 2013, entered into in connection with the IPO, the Company has agreed to reimburse the underwriters for the legal fees and other expenses reasonably incurred by the underwriters’ law firm in its representation of the underwriters in connection with this matter. Pursuant to Indemnification Agreements, dated as of May 22, 2013, between the Company and each of the directors and officers named in this action, the Company has agreed to assume the defense of such directors and officers. The Company believes the purported federal securities class action is without merit and will vigorously defend against the lawsuit.

Other contingencies

The Company is subject to other contingencies, including legal proceedings and claims arising out of its operations and businesses that cover a wide range of matters, including, among others, environmental, contract, employment, personal injury, property damage, product liability, warranty, and modification, adjustment or replacement of component parts or units sold, which may include product recalls.  Product liability, environmental and other legal proceedings also include matters with respect to businesses previously owned.  The Company has used various substances in their products and manufacturing operations, which have been or may be deemed to be hazardous or dangerous, and the extent of its potential liability, if any, under environmental, product liability and workers’ compensation statutes, rules, regulations and case law is unclear.  Further, due to the lack of adequate information and the potential impact of present regulations and any future regulations, there are certain circumstances in which no range of potential exposure may be reasonably estimated.  Also, it is not possible to ascertain the ultimate legal and financial liability with respect to certain contingent liabilities, including lawsuits, and therefore no such estimate has been made as of October 3, 2015.

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ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES

9 Months Ended

Oct. 03, 2015

Payables and Accruals [Abstract]

ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES

ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES

Accrued expenses consist of the following at October 3, 2015 and December 31, 2014:

(Amounts in thousands)	October 3, 2015		December 31, 2014
Insurance	$	9,023	$	9,144
Employee compensation and benefits	18,327		15,576
Sales and marketing	55,134		36,279
Product warranty	18,107		18,325
Accrued freight	2,452		1,278
Accrued interest	7,506		16,470
Accrued environmental liability	436		451
Accrued pension	1,753		1,753
Accrued sales returns and discounts	4,894		3,054
Accrued taxes	6,234		3,898
Litigation accrual	630		2,573
Other	26,247		38,524
	$	150,743	$	147,325

Other long-term liabilities consist of the following at October 3, 2015 and December 31, 2014:

(Amounts in thousands)	October 3, 2015		December 31, 2014
Insurance	$	1,452	$	1,705
Pension liabilities	13,242		13,327
Multi-employer pension withdrawal liability	1,304		2,094
Product warranty	58,649		66,098
Long-term product claim liability	138		138
Long-term environmental liability	1,212		1,227
Liabilities for tax uncertainties	2,564		3,065
Litigation accrual	937		2,000
Other	5,940		5,160
	$	85,438	$	94,814

Long-term incentive plan

The Company has a long-term incentive plan (“LTIP”) for certain employees. The long-term incentive plan was implemented to retain and incentivize key employees. During the three months ended October 3, 2015 and September 27, 2014, the Company recognized a LTIP expense of $0.7 million and $0.5 million, respectively, which has been recorded within selling, general, and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss). During the nine months ended October 3, 2015 and September 27, 2014, the Company recognized a LTIP expense of $2.2 million and $1.5 million, respectively, which has been recorded within selling, general, and administrative expenses in the condensed consolidated statements of operations and comprehensive income (loss). The LTIP liability was $4.1 million and $4.5 million as of October 3, 2015 and December 31, 2014, respectively, of which $2.8 million and $2.5 million has been recorded within accrued expenses and $1.3 million and $2.0 million in other long-term liabilities in the condensed consolidated balance sheets as of October 3, 2015 and December 31, 2014, respectively.

Other liabilities

During the three months ended October 3, 2015 and September 27, 2014, the Company made approximately $0.3 million and $1.1 million, in cash payments on restructuring liabilities, respectively. During the nine months ended October 3, 2015 and September 27, 2014, the Company made approximately $1.8 million and $4.4 million, in cash payments on restructuring liabilities, respectively. These payments were for a restructuring and integration program implemented in Western Canada and general back office centralization efforts incurred as well as product simplification costs incurred for the entire Windows and Doors segment.

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STOCK-BASED COMPENSATION

9 Months Ended

Oct. 03, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

A rollforward of stock options outstanding during the nine months endedOctober 3, 2015 is presented below: 

	Stock Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)
Balance at January 1, 2015	2,749,064		$	13.38	5.50
Granted	247,808		12.62		—
Exercised	(225,960	)	9.75		—
Forfeited or expired	(197,119	)	—		—
Balance at October 3, 2015	2,573,793		$	13.70	5.71

As of October 3, 2015, 2,138,571 options were 100% vested.  At October 3, 2015, the Company had approximately $1.3 million of total unrecognized compensation expense that will be recognized over a weighted average period of 1.81 years.  The Company recorded compensation expense of $0.4 million and $0.6 million for the three months ended October 3, 2015 and September 27, 2014, respectively, and $1.4 million and $1.5 million for the nine months ended October 3, 2015 and September 27, 2014, respectively, related to stock option grants.

Restricted stock

During March 2014, the Company issued 3,523 restricted shares of common stock to each of three independent members of the Board of Directors.  These shares vested over the approximate ten-month period to December 31, 2014 and the Company expensed these items ratably over the ten-month period up to the vesting date. One issuance of these shares, or 3,523 shares, became immediately fully vested during May 2014. Additionally, during May 2014, the Company issued 5,240 restricted shares of common stock to each of the two new independent members of the Board of Directors.  These shares will vest over the approximate eight-month period to December 31, 2014 and the Company expensed these items ratably over the eight-month period up to the vesting date. During the three and nine months ended September 27, 2014, the Company expensed approximately $0.1 million and $0.2 million, respectively, related to these grants in selling, general, and administrative expenses within the condensed consolidated statement of operations and comprehensive income (loss).

During December 2014, the Company issued an aggregate of 23,944 restricted shares of common stock in an equal number to each of the four independent members of the Board of Directors.  These shares will vest over the 2015 calendar period and the Company will expense these items as compensation expense, ratably during 2015. During the three and nine months ended October 3, 2015, the Company expensed approximately $0.1 million and $0.2 million, respectively, related to these grants in selling, general, and administrative expenses within the condensed consolidated statement of operations and comprehensive income (loss).

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GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION, Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS [Abstract]
Net sales	$ 530,884	$ 437,848	$ 1,409,266	$ 1,116,524
Cost of products sold	396,103	339,259	1,089,461	890,717
Gross profit	134,781	98,589	319,805	225,807
Operating expenses:
Selling, general and administrative expenses	66,358	51,355	207,286	156,391
Intercompany administrative charges	0	0	0	0
Amortization of intangible assets	6,422	5,307	18,904	15,841
Total operating expenses	72,780	56,662	226,190	172,232
Operating earnings	62,001	41,927	93,615	53,575
Foreign currency (loss) gain	(1,069)	(766)	(2,101)	(517)
Intercompany interest	0	0	0	0
Interest expense	(18,840)	(16,300)	(56,632)	(52,065)
Interest income	21	18	47	64
Tax receivable agreement liability adjustment	1,712	(13,988)	(13,467)	(14,419)
Gains (Losses) on Extinguishment of Debt			0	21,364
Intercompany administrative income	0	0	0	0
Equity in subsidiaries' income (loss)	0	0	0	0
Income (Loss) before provision (benefit) for income taxes	43,825	10,891	21,462	(34,726)
Provision (benefit) for income taxes	2,114	(10,514)	(1,762)	(15,933)
Net income (loss)	41,711	21,405	23,224	(18,793)
Other comprehensive income (loss):
Currency translation adjustment	(4,121)	(5,009)	(11,291)	(5,366)
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	(826)	886	145	(47)
Total comprehensive income (loss)	36,764	17,282	12,078	(24,206)
Income (Loss) from Operations before Extraordinary Items	43,825	10,891	21,462	(34,726)
Guarantor Ply Gem Holdings, Inc. [Member]
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS [Abstract]
Net sales	0	0	0	0
Cost of products sold	0	0	0	0
Gross profit	0	0	0	0
Operating expenses:
Selling, general and administrative expenses	0	0	0	0
Intercompany administrative charges	0	0	0	0
Amortization of intangible assets	0	0	0	0
Total operating expenses	0	0	0	0
Operating earnings	0	0	0	0
Foreign currency (loss) gain	0	0	0	0
Intercompany interest	0	0	0	0
Interest expense	0	0	0	0
Interest income	0	0	0	0
Tax receivable agreement liability adjustment	0	0	0	0
Gains (Losses) on Extinguishment of Debt				0
Intercompany administrative income	0	0	0	0
Equity in subsidiaries' income (loss)	41,711	21,405	23,224	(18,793)
Income (Loss) before provision (benefit) for income taxes	41,711	21,405	23,224	(18,793)
Provision (benefit) for income taxes	0	0	0	0
Net income (loss)	41,711	21,405	23,224	(18,793)
Other comprehensive income (loss):
Currency translation adjustment	0	0	0	0
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	0	0	0	0
Total comprehensive income (loss)	41,711	21,405	23,224	(18,793)
Income (Loss) from Operations before Extraordinary Items	0	0	0	0
Issuer Ply Gem Industries, Inc. [Member]
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS [Abstract]
Net sales	0	0	0	0
Cost of products sold	0	0	0	0
Gross profit	0	0	0	0
Operating expenses:
Selling, general and administrative expenses	7,919	6,602	24,463	18,116
Intercompany administrative charges	0	0	0	0
Amortization of intangible assets	0	0	0	0
Total operating expenses	7,919	6,602	24,463	18,116
Operating earnings	(7,919)	(6,602)	(24,463)	(18,116)
Foreign currency (loss) gain	0	0	0	0
Intercompany interest	15,882	13,328	(47,474)	(45,352)
Interest expense	(18,840)	(16,296)	56,624	(52,033)
Interest income	1	1	3	4
Tax receivable agreement liability adjustment	1,712	(13,988)	13,467	(14,419)
Gains (Losses) on Extinguishment of Debt				21,364
Intercompany administrative income	8,006	5,575	25,657	17,341
Equity in subsidiaries' income (loss)	42,869	39,387	44,644	24,442
Income (Loss) before provision (benefit) for income taxes	41,711	21,405	23,224	(18,793)
Provision (benefit) for income taxes	0	0	0	0
Net income (loss)	41,711	21,405	23,224	(18,793)
Other comprehensive income (loss):
Currency translation adjustment	0	0	0	0
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	0	0	0	0
Total comprehensive income (loss)	41,711	21,405	23,224	(18,793)
Income (Loss) from Operations before Extraordinary Items	(1,158)	(17,982)	(21,420)	(43,235)
Guarantor Subsidiaries [Member]
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS [Abstract]
Net sales	468,789	352,856	1,234,439	905,393
Cost of products sold	350,646	275,938	957,220	728,675
Gross profit	118,143	76,918	277,219	176,718
Operating expenses:
Selling, general and administrative expenses	46,394	28,502	141,197	90,553
Intercompany administrative charges	6,554	4,528	21,483	12,774
Amortization of intangible assets	5,346	4,008	15,428	11,793
Total operating expenses	58,294	37,038	178,108	115,120
Operating earnings	59,849	39,880	99,111	61,598
Foreign currency (loss) gain	0	0	0	0
Intercompany interest	(13,880)	(11,723)	44,670	42,753
Interest expense	0	(4)	0	(30)
Interest income	11	4	24	24
Tax receivable agreement liability adjustment	0	0	0	0
Gains (Losses) on Extinguishment of Debt				0
Intercompany administrative income	0	0	0	0
Equity in subsidiaries' income (loss)	0	0	0	0
Income (Loss) before provision (benefit) for income taxes	45,980	28,157	54,465	18,839
Provision (benefit) for income taxes	1,753	(11,159)	(1,620)	(21,134)
Net income (loss)	44,227	39,316	56,085	39,973
Other comprehensive income (loss):
Currency translation adjustment	0	0	0	0
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	0	0	0	0
Total comprehensive income (loss)	44,227	39,316	56,085	39,973
Income (Loss) from Operations before Extraordinary Items	45,980	28,157	54,465	18,839
Non-Guarantor Subsidiary [Member]
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS [Abstract]
Net sales	62,095	84,992	174,827	211,131
Cost of products sold	45,457	63,321	132,241	162,042
Gross profit	16,638	21,671	42,586	49,089
Operating expenses:
Selling, general and administrative expenses	12,045	16,251	41,626	47,722
Intercompany administrative charges	1,452	1,047	4,174	4,567
Amortization of intangible assets	1,076	1,299	3,476	4,048
Total operating expenses	14,573	18,597	49,276	56,337
Operating earnings	2,065	3,074	(6,690)	(7,248)
Foreign currency (loss) gain	(1,069)	(766)	(2,101)	(517)
Intercompany interest	(2,002)	(1,605)	2,804	2,599
Interest expense	0	0	(8)	(2)
Interest income	9	13	20	36
Tax receivable agreement liability adjustment	0	0	0	0
Gains (Losses) on Extinguishment of Debt				0
Intercompany administrative income	0	0	0	0
Equity in subsidiaries' income (loss)	0	0	0	0
Income (Loss) before provision (benefit) for income taxes	(997)	716	(11,583)	(10,330)
Provision (benefit) for income taxes	361	645	(142)	5,201
Net income (loss)	(1,358)	71	(11,441)	(15,531)
Other comprehensive income (loss):
Currency translation adjustment		(5,009)		(5,366)
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net		886	145	(47)
Total comprehensive income (loss)	(6,305)	(4,052)	(22,587)	(20,944)
Income (Loss) from Operations before Extraordinary Items	(997)	716	(11,583)	(10,330)
Consolidating Adjustments [Member]
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS [Abstract]
Net sales	0	0	0	0
Cost of products sold	0	0	0	0
Gross profit	0	0	0	0
Operating expenses:
Selling, general and administrative expenses	0	0	0	0
Intercompany administrative charges	(8,006)	(5,575)	(25,657)	(17,341)
Amortization of intangible assets	0	0	0	0
Total operating expenses	(8,006)	(5,575)	(25,657)	(17,341)
Operating earnings	8,006	5,575	25,657	17,341
Foreign currency (loss) gain	0	0	0	0
Intercompany interest	0	0	0	0
Interest expense	0	0	0	0
Interest income	0	0	0	0
Tax receivable agreement liability adjustment	0	0	0	0
Gains (Losses) on Extinguishment of Debt				0
Intercompany administrative income	(8,006)	(5,575)	(25,657)	(17,341)
Equity in subsidiaries' income (loss)	(84,580)	(60,792)	(67,868)	(5,649)
Income (Loss) before provision (benefit) for income taxes	(84,580)	(60,792)	(67,868)	(5,649)
Provision (benefit) for income taxes	0	0	0	0
Net income (loss)	(84,580)	(60,792)	(67,868)	(5,649)
Other comprehensive income (loss):
Currency translation adjustment	0	0	0	0
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net	0	0	0	0
Total comprehensive income (loss)	(84,580)	(60,792)	(67,868)	(5,649)
Income (Loss) from Operations before Extraordinary Items	$ 0	$ 0	$ 0	$ 0

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GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION, Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014
Cash flows from operating activities:
Net income (loss)	$ 41,711	$ 21,405	$ 23,224	$ (18,793)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization expense			44,308	33,916
Restructuring Costs			805	3,012
Non-cash interest expense, net			9,988	11,606
(Gain) Loss on foreign currency transactions	1,069	766	(2,101)	(517)
Litigation Settlement, Amount			(5,000)
Gains (Losses) On Modification Or Extinguishment Of Debt		21,364	0	21,364
Stock based compensation			1,642	1,672
Deferred income taxes			(4,328)	(17,195)
Tax receivable agreement liability adjustment	1,712	(13,988)	(13,467)	(14,419)
(Decrease) increase in tax uncertainty, net of valuation allowance			(501)	254
Equity Income In Consolidated Subsidiaries	0	0	0	0
Other			(67)	(224)
Changes in operating assets and liabilities:
Accounts receivable, net			(76,850)	(102,728)
Inventories			15,340	(24,074)
Prepaid expenses and other current assets			6,925	2,607
Accounts payable			8,409	15,180
Accrued expenses			(2,776)	(1,468)
Cash payments on restructuring liabilities			(1,762)	(4,412)
Other			(1,004)	4,571
Net cash provided by (used in) operating activities			35,765	(55,409)
Cash flows from investing activities:
Capital expenditures			(20,288)	(14,524)
Payments to Acquire Businesses, Net of Cash Acquired			(21,000)	(130,856)
Proceeds from sale of assets			106	744
Net cash used in investing activities			(41,182)	(144,636)
Cash flows from financing activities:
Proceeds from Issuance of Senior Long-term Debt			0	1,067,725
Net revolver borrowings			20,000	20,000
Payment of early call premium			0	(61,142)
Repayments of Senior Debt			(3,225)	(853,075)
Proceeds from Stock Options Exercised			2,201	1,073
Proceeds from intercompany investment			0	0
Payments of Debt Issuance Costs			0	(16,721)
Net cash provided by financing activities			18,976	157,860
Impact of exchange rate movements on cash			(3,443)	(834)
Net increase (decrease) in cash and cash equivalents			10,116	(43,019)
Cash and cash equivalents at the beginning of the period			33,162	69,801
Cash and cash equivalents at the end of the period	43,278	26,782	43,278	26,782
Fair-value premium on purchased inventory			54	38
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability			0	(264)
Guarantor Ply Gem Holdings, Inc. [Member]
Cash flows from operating activities:
Net income (loss)	41,711	21,405	23,224	(18,793)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization expense			0	0
Restructuring Costs			0	0
Non-cash interest expense, net			0	0
(Gain) Loss on foreign currency transactions			0	0
Litigation Settlement, Amount			0	0
Gains (Losses) On Modification Or Extinguishment Of Debt				0
Stock based compensation			0	0
Deferred income taxes			0	0
Tax receivable agreement liability adjustment	0	0	0	0
(Decrease) increase in tax uncertainty, net of valuation allowance			0	0
Equity Income In Consolidated Subsidiaries	(41,711)	(21,405)	(23,224)	18,793
Other			0	0
Changes in operating assets and liabilities:
Accounts receivable, net			0	0
Inventories			0	0
Prepaid expenses and other current assets			0	0
Accounts payable			0	0
Accrued expenses			0	0
Cash payments on restructuring liabilities			0	0
Other			0	0
Net cash provided by (used in) operating activities			0	0
Cash flows from investing activities:
Capital expenditures			0	0
Payments to Acquire Businesses, Net of Cash Acquired			0	0
Proceeds from sale of assets			0	0
Net cash used in investing activities			0	0
Cash flows from financing activities:
Proceeds from Issuance of Senior Long-term Debt				0
Net revolver borrowings			0	0
Payment of early call premium				0
Repayments of Senior Debt			0	0
Proceeds from Stock Options Exercised			0	0
Proceeds from intercompany investment			0	0
Payments of Debt Issuance Costs				0
Net cash provided by financing activities			0	0
Impact of exchange rate movements on cash			0	0
Net increase (decrease) in cash and cash equivalents			0	0
Cash and cash equivalents at the beginning of the period			0	0
Cash and cash equivalents at the end of the period	0	0	0	0
Fair-value premium on purchased inventory			0	0
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability				0
Issuer Ply Gem Industries, Inc. [Member]
Cash flows from operating activities:
Net income (loss)	41,711	21,405	23,224	(18,793)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization expense			250	486
Restructuring Costs			0	0
Non-cash interest expense, net			9,988	11,606
(Gain) Loss on foreign currency transactions			0	0
Litigation Settlement, Amount			0	0
Gains (Losses) On Modification Or Extinguishment Of Debt				21,364
Stock based compensation			1,642	1,672
Deferred income taxes			0	0
Tax receivable agreement liability adjustment	1,712	(13,988)	13,467	(14,419)
(Decrease) increase in tax uncertainty, net of valuation allowance			0	0
Equity Income In Consolidated Subsidiaries	(42,869)	(39,387)	(44,644)	(24,442)
Other			0	0
Changes in operating assets and liabilities:
Accounts receivable, net			0	0
Inventories			0	0
Prepaid expenses and other current assets			825	189
Accounts payable			(80)	(60)
Accrued expenses			(12,522)	(18,259)
Cash payments on restructuring liabilities			0	0
Other			(14)	2
Net cash provided by (used in) operating activities			(7,864)	(11,816)
Cash flows from investing activities:
Capital expenditures			(1,186)	(1,075)
Payments to Acquire Businesses, Net of Cash Acquired			0	(130,856)
Proceeds from sale of assets			0	0
Net cash used in investing activities			(1,186)	(131,931)
Cash flows from financing activities:
Proceeds from Issuance of Senior Long-term Debt				1,067,725
Net revolver borrowings			20,000	20,000
Payment of early call premium				61,142
Repayments of Senior Debt			(3,225)	(853,075)
Proceeds from Stock Options Exercised			2,201	1,073
Proceeds from intercompany investment			(3,214)	(59,762)
Payments of Debt Issuance Costs				(16,721)
Net cash provided by financing activities			22,190	98,098
Impact of exchange rate movements on cash			0	0
Net increase (decrease) in cash and cash equivalents			13,140	(45,649)
Cash and cash equivalents at the beginning of the period			23,555	57,800
Cash and cash equivalents at the end of the period	36,695	12,151	36,695	12,151
Fair-value premium on purchased inventory			0	0
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability				0
Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net income (loss)	44,227	39,316	56,085	39,973
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization expense			38,703	27,239
Restructuring Costs			0	0
Non-cash interest expense, net			0	0
(Gain) Loss on foreign currency transactions			0	0
Litigation Settlement, Amount			(3,210)	4,593
Gains (Losses) On Modification Or Extinguishment Of Debt				0
Stock based compensation			0	0
Deferred income taxes			(4,328)	(22,227)
Tax receivable agreement liability adjustment	0	0	0	0
(Decrease) increase in tax uncertainty, net of valuation allowance			(501)	254
Equity Income In Consolidated Subsidiaries	0	0	0	0
Other			(67)	(50)
Changes in operating assets and liabilities:
Accounts receivable, net			(74,649)	(81,439)
Inventories			15,487	(17,394)
Prepaid expenses and other current assets			6,780	2,673
Accounts payable			9,075	5,873
Accrued expenses			14,664	11,865
Cash payments on restructuring liabilities			(201)	(577)
Other			(990)	(1,997)
Net cash provided by (used in) operating activities			56,902	(31,440)
Cash flows from investing activities:
Capital expenditures			(16,836)	(11,907)
Payments to Acquire Businesses, Net of Cash Acquired			(21,000)	0
Proceeds from sale of assets			88	109
Net cash used in investing activities			(37,748)	(11,798)
Cash flows from financing activities:
Proceeds from Issuance of Senior Long-term Debt				0
Net revolver borrowings			0	0
Payment of early call premium				0
Repayments of Senior Debt			0	0
Proceeds from Stock Options Exercised			0	0
Proceeds from intercompany investment			24,567	(44,781)
Payments of Debt Issuance Costs				0
Net cash provided by financing activities			(24,567)	44,781
Impact of exchange rate movements on cash			0	0
Net increase (decrease) in cash and cash equivalents			(5,413)	1,543
Cash and cash equivalents at the beginning of the period			(5,845)	(4,970)
Cash and cash equivalents at the end of the period	(11,258)	(3,427)	(11,258)	(3,427)
Fair-value premium on purchased inventory			54	38
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability				(264)
Non-Guarantor Subsidiary [Member]
Cash flows from operating activities:
Net income (loss)	(1,358)	71	(11,441)	(15,531)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization expense			5,355	6,191
Restructuring Costs			805	3,012
Non-cash interest expense, net			0	0
(Gain) Loss on foreign currency transactions			(2,101)	(517)
Litigation Settlement, Amount			0	0
Gains (Losses) On Modification Or Extinguishment Of Debt				0
Stock based compensation			0	0
Deferred income taxes			0	5,032
Tax receivable agreement liability adjustment	0	0	0	0
(Decrease) increase in tax uncertainty, net of valuation allowance			0	0
Equity Income In Consolidated Subsidiaries	0	0	0	0
Other			0	(174)
Changes in operating assets and liabilities:
Accounts receivable, net			(2,201)	(21,289)
Inventories			(147)	(6,680)
Prepaid expenses and other current assets			(680)	(255)
Accounts payable			(586)	9,367
Accrued expenses			(4,918)	4,926
Cash payments on restructuring liabilities			(1,561)	(3,835)
Other			0	6,566
Net cash provided by (used in) operating activities			(13,273)	(12,153)
Cash flows from investing activities:
Capital expenditures			(2,266)	(1,542)
Payments to Acquire Businesses, Net of Cash Acquired			0	0
Proceeds from sale of assets			18	635
Net cash used in investing activities			(2,248)	(907)
Cash flows from financing activities:
Proceeds from Issuance of Senior Long-term Debt				0
Net revolver borrowings			0	0
Payment of early call premium				0
Repayments of Senior Debt			0	0
Proceeds from Stock Options Exercised			0	0
Proceeds from intercompany investment			(21,353)	(14,981)
Payments of Debt Issuance Costs				0
Net cash provided by financing activities			21,353	14,981
Impact of exchange rate movements on cash			(3,443)	(834)
Net increase (decrease) in cash and cash equivalents			2,389	1,087
Cash and cash equivalents at the beginning of the period			15,452	16,971
Cash and cash equivalents at the end of the period	17,841	18,058	17,841	18,058
Fair-value premium on purchased inventory			0	0
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability				0
Consolidating Adjustments [Member]
Cash flows from operating activities:
Net income (loss)	(84,580)	(60,792)	(67,868)	(5,649)
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Depreciation and amortization expense			0	0
Restructuring Costs			0	0
Non-cash interest expense, net			0	0
(Gain) Loss on foreign currency transactions			0	0
Litigation Settlement, Amount			0	0
Gains (Losses) On Modification Or Extinguishment Of Debt				0
Stock based compensation			0	0
Deferred income taxes			0	0
Tax receivable agreement liability adjustment	0	0	0	0
(Decrease) increase in tax uncertainty, net of valuation allowance			0	0
Equity Income In Consolidated Subsidiaries	84,580	60,792	67,868	5,649
Other			0	0
Changes in operating assets and liabilities:
Accounts receivable, net			0	0
Inventories			0	0
Prepaid expenses and other current assets			0	0
Accounts payable			0	0
Accrued expenses			0	0
Cash payments on restructuring liabilities			0	0
Other			0	0
Net cash provided by (used in) operating activities			0	0
Cash flows from investing activities:
Capital expenditures			0	0
Payments to Acquire Businesses, Net of Cash Acquired			0	0
Proceeds from sale of assets			0	0
Net cash used in investing activities			0	0
Cash flows from financing activities:
Proceeds from Issuance of Senior Long-term Debt				0
Net revolver borrowings			0	0
Payment of early call premium				0
Repayments of Senior Debt			0	0
Proceeds from Stock Options Exercised			0	0
Proceeds from intercompany investment			0	0
Payments of Debt Issuance Costs				0
Net cash provided by financing activities			0	0
Impact of exchange rate movements on cash			0	0
Net increase (decrease) in cash and cash equivalents			0	0
Cash and cash equivalents at the beginning of the period			0	0
Cash and cash equivalents at the end of the period	$ 0	$ 0	0	0
Fair-value premium on purchased inventory			0	0
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability				0
class action settlement [Member]
Adjustments to reconcile net loss to cash provided by (used in) operating activities:
Litigation Settlement, Amount			$ (3,210)	$ 4,593

XML

RESTRUCTURING (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Dec. 31, 2014	Dec. 31, 2013
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 113		$ 113		$ 412
Restructuring and Related Cost, Expected Cost						$ 2,900
Restructuring Reserve, Accrual Adjustment			(29)
Restructuring Charges	0	$ 819	805	$ 3,012
Contract Termination [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	113		113		129
Restructuring and Related Cost, Expected Cost						200
Restructuring Reserve, Accrual Adjustment			(16)
Restructuring Charges			0
Payments for Restructuring			0
Employee Relocation [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	0		0		$ 283
Restructuring and Related Cost, Expected Cost						1,100
Restructuring Reserve, Accrual Adjustment			(13)
Restructuring Charges			805
Payments for Restructuring			(1,075)
Other Restructuring [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost						$ 1,600
Ply Gem Canada [Member]
Restructuring Cost and Reserve [Line Items]
Payments for Restructuring			(1,075)
Siding, Fencing and Stone [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	0	0	0
Windows and Doors [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	819	805	3,012
Windows and Doors [Member] | Ply Gem Canada [Member]
Restructuring Cost and Reserve [Line Items]
Payments for Restructuring	$ (300)	$ (1,100)	$ (1,800)	$ (4,400)

XML

GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION (Tables)

9 Months Ended

Oct. 03, 2015

GUARANTOR / NON GUARANTOR FINANCIAL INFORMATION [Abstract]

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Three months ended October 3, 2015
	Guarantor		Issuer						Non-
	Ply Gem		Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.		Industries, Inc.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
Net sales	$	—	$	—		$	468,789		$	62,095		$	—		$	530,884
Cost of products sold	—		—			350,646			45,457			—			396,103
Gross profit	—		—			118,143			16,638			—			134,781
Operating expenses:
Selling, general and
administrative expenses	—		7,919			46,394			12,045			—			66,358
Intercompany administrative
charges	—		—			6,554			1,452			(8,006		)	—
Amortization of intangible assets	—		—			5,346			1,076			—			6,422
Total operating expenses	—		7,919			58,294			14,573			(8,006		)	72,780
Operating earnings (loss)	—		(7,919		)	59,849			2,065			8,006			62,001
Foreign currency loss	—		—			—			(1,069		)	—			(1,069		)
Intercompany interest	—		15,882			(13,880		)	(2,002		)	—			—
Interest expense	—		(18,840		)	—			—			—			(18,840		)
Interest income	—		1			11			9			—			21
Tax receivable agreement liability adjustment	—		1,712			—			—			—			1,712
Intercompany administrative income	—		8,006			—			—			(8,006		)	—
Income (loss) before equity in
subsidiaries' income (loss)	—		(1,158		)	45,980			(997		)	—			43,825
Equity in subsidiaries' income (loss)	41,711		42,869			—			—			(84,580		)	—
Income (loss) before provision
(benefit) for income taxes	41,711		41,711			45,980			(997		)	(84,580		)	43,825
Provision (benefit) for income taxes	—		—			1,753			361			—			2,114
Net income (loss)	$	41,711	$	41,711		$	44,227		$	(1,358	)	$	(84,580	)	$	41,711
Other comprehensive income (loss):
Foreign currency translation adjustments	—		—			—			(4,121		)	—			(4,121		)
Unrealized loss on derivative instrument	—		—			—			(826		)	—			(826		)
Total comprehensive income (loss)	$	41,711	$	41,711		$	44,227		$	(6,305	)	$	(84,580	)	$	36,764

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Three months ended September 27, 2014
	Guarantor		Issuer						Non-
	Ply Gem		Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.		Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Net sales	$	—	$	—		$	352,856		$	84,992		$	—		$	437,848
Cost of products sold	—		—			275,938			63,321			—			339,259
Gross profit	—		—			76,918			21,671			—			98,589
Operating expenses:
Selling, general and
administrative expenses	—		6,602			28,502			16,251			—			51,355
Intercompany administrative
charges	—		—			4,528			1,047			(5,575		)	—
Amortization of intangible assets	—		—			4,008			1,299			—			5,307
Total operating expenses	—		6,602			37,038			18,597			(5,575		)	56,662
Operating earnings (loss)	—		(6,602		)	39,880			3,074			5,575			41,927
Foreign currency loss	—		—			—			(766		)	—			(766		)
Intercompany interest	—		13,328			(11,723		)	(1,605		)	—			—
Interest expense	—		(16,296		)	(4		)	—			—			(16,300		)
Interest income	—		1			4			13			—			18
Tax receivable agreement liability adjustment	—		(13,988		)	—			—			—			(13,988		)
Intercompany administrative income	—		5,575			—			—			(5,575		)	—
Income (loss) before equity in
subsidiaries' income	—		(17,982		)	28,157			716			—			10,891
Equity in subsidiaries' income	21,405		39,387			—			—			(60,792		)	—
Income before provision
(benefit) for income taxes	21,405		21,405			28,157			716			(60,792		)	10,891
Provision (benefit) for income taxes	—		—			(11,159		)	645			—			(10,514		)
Net income	$	21,405	$	21,405		$	39,316		$	71		$	(60,792	)	$	21,405
Other comprehensive income (loss):
Foreign currency translation adjustments	—		—			—			(5,009		)	—			(5,009		)
Unrealized gain on derivative instrument	—		—			—			886			—			886
Total comprehensive income (loss)	$	21,405	$	21,405		$	39,316		$	(4,052	)	$	(60,792	)	$	17,282

CONDENSED CONSOLIDATING BALANCE SHEET

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
As of October 3, 2015
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
ASSETS	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
Current Assets:
Cash and cash equivalents	$	—		$	36,695		$	(11,258	)	$	17,841		$	—		$	43,278
Accounts receivable, net	—			—			236,079			31,916			—			267,995
Inventories:
Raw materials	—			—			69,630			6,037			—			75,667
Work in process	—			—			20,312			1,807			—			22,119
Finished goods	—			—			51,233			16,154			—			67,387
Total inventory	—			—			141,175			23,998			—			165,173
Prepaid expenses and other
current assets	—			952			22,153			4,939			—			28,044
Deferred income taxes	—			—			8,542			—			—			8,542
Total current assets	—			37,647			396,691			78,694			—			513,032
Investments in subsidiaries	(80,770		)	(184,858		)	—			—			265,628			—
Property and Equipment, at cost:
Land	—			—			7,387			777			—			8,164
Buildings and improvements	—			—			61,295			4,633			—			65,928
Machinery and equipment	—			3,394			353,604			17,184			—			374,182
	—			3,394			422,286			22,594			—			448,274
Less accumulated depreciation	—			(1,658		)	(281,738		)	(8,861		)	—			(292,257		)
Total property and equipment, net	—			1,736			140,548			13,733			—			156,017
Other Assets:
Intangible assets, net	—			—			117,203			18,153			—			135,356
Goodwill	—			—			449,492			29,838			—			479,330
Intercompany note receivable	—			1,104,510			—			—			(1,104,510		)	—
Other	—			23,804			3,601			—			—			27,405
Total other assets	—			1,128,314			570,296			47,991			(1,104,510		)	642,091
	$	(80,770	)	$	982,839		$	1,107,535		$	140,418		$	(838,882	)	$	1,311,140
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	—		$	159		$	77,261		$	15,958		$	—		$	93,378
Accrued expenses	—			13,371			118,239			19,133			—			150,743
Current portion of long-term debt	—			4,300			—			—			—			4,300
Total current liabilities	—			17,830			195,500			35,091			—			248,421
Deferred income taxes	—			—			14,941			5,364			—			20,305
Intercompany note payable	—						998,056			106,454			(1,104,510		)	—
Payable to related parties pursuant to
tax receivable agreement	—			24,384			—			—			—			24,384
Other long-term liabilities	—			8,033			73,494			3,911			—			85,438
Long-term debt, less current portion	—			1,013,362			—			—			—			1,013,362
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	—			—			—			—			—			—
Common stock	681			681			—			—			(681		)	681
Additional paid-in-capital	748,965			748,965			437,178			21,521			(1,207,664		)	748,965
(Accumulated deficit) retained earnings	(799,288		)	(799,288		)	(597,096		)	(21,142		)	1,417,526			(799,288		)
Accumulated other
comprehensive loss	(31,128		)	(31,128		)	(14,538		)	(10,781		)	56,447			(31,128		)
Total stockholders' (deficit) equity	(80,770		)	(80,770		)	(174,456		)	(10,402		)	265,628			(80,770		)
	$	(80,770	)	$	982,839		$	1,107,535		$	140,418		$	(838,882	)	$	1,311,140

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2014
	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—		$	23,555		$	(5,845	)	$	15,452		$	—		$	33,162
Accounts receivable, net	—			—			153,791			33,888			—			187,679
Inventories:
Raw materials	—			—			65,772			10,695			—			76,467
Work in process	—			—			32,653			1,725			—			34,378
Finished goods	—			—			54,415			14,653			—			69,068
Total inventory	—			—			152,840			27,073			—			179,913
Prepaid expenses and other
current assets	—			1,044			25,840			4,924			—			31,808
Deferred income taxes	—			—			7,680			—			—			7,680
Total current assets	—			24,599			334,306			81,337			—			440,242
Investments in subsidiaries	(96,668		)	(64,046		)	—			—			160,714			—
Property and Equipment, at cost:
Land	—			—			7,085			882			—			7,967
Buildings and improvements	—			—			60,211			5,447			—			65,658
Machinery and equipment	—			2,794			348,951			16,974			—			368,719
	—			2,794			416,247			23,303			—			442,344
Less accumulated depreciation	—			(2,083		)	(271,156		)	(8,138		)	—			(281,377		)
Total property and equipment, net	—			711			145,091			15,165			—			160,967
Other Assets:
Intangible assets, net	—			—			123,333			24,376			—			147,709
Goodwill	—			—			442,233			33,879			—			476,112
Intercompany note receivable	—			953,510			—			—			(953,510		)	—
Other	—			26,784			2,761			—			—			29,545
Total other assets	—			980,294			568,327			58,255			(953,510		)	653,366
	$	(96,668	)	$	941,558		$	1,047,724		$	154,757		$	(792,796	)	$	1,254,575
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	—		$	239		$	66,452		$	17,473		$	—		$	84,164
Accrued expenses	—			19,907			110,290			17,128			—			147,325
Current portion of long-term debt	—			4,300			—			—			—			4,300
Total current liabilities	—			24,446			176,742			34,601			—			235,789
Deferred income taxes	—			—			14,719			6,087			—			20,806
Intercompany note payable	—			—			844,258			109,252			(953,510		)	—
Payable to related parties pursuant to
tax receivable agreement	—			10,917			—			—			—			10,917
Other long-term liabilities	—			13,946			76,923			3,945			—			94,814
Long-term debt	—			988,917			—			—			—			988,917
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	—			—			—			—			—			—
Common stock	679			679			—			—			(679		)	679
Additional paid-in-capital	745,140			745,140			602,801			16,010			(1,363,951		)	745,140
(Accumulated deficit) retained earnings	(822,512		)	(822,512		)	(653,181		)	(9,701		)	1,485,394			(822,512		)
Accumulated other
comprehensive income (loss)	(19,975		)	(19,975		)	(14,538		)	(5,437		)	39,950			(19,975		)
Total stockholders' (deficit) equity	(96,668		)	(96,668		)	(64,918		)	872			160,714			(96,668		)
	$	(96,668	)	$	941,558		$	1,047,724		$	154,757		$	(792,796	)	$	1,254,575

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the nine months ended October 3, 2015
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	23,224		$	23,224		$	56,085		$	(11,441	)	$	(67,868	)	$	23,224
Adjustments to reconcile net income (loss)
to cash provided by (used in) operating activities:
Depreciation and amortization expense	—			250			38,703			5,355			—			44,308
Fair-value premium on purchased inventory	—			—			54			—			—			54
Non-cash restructuring costs	—			—			—			805			—			805
Non-cash interest expense, net	—			9,988			—			—			—			9,988
Loss on foreign currency transactions	—			—			—			2,101			—			2,101
Non-cash litigation expense	—			—			(3,210		)	—			—			(3,210		)
Stock based compensation	—			1,642			—			—			—			1,642
Deferred income taxes	—			—			(4,328		)	—			—			(4,328		)
Tax receivable agreement liability adjustment	—			13,467			—			—			—			13,467
Reduction in tax uncertainty,
net of valuation allowance	—			—			(501		)	—			—			(501		)
Equity in subsidiaries' net income (loss)	(23,224		)	(44,644		)	—			—			67,868			—
Other	—			—			(67		)	—			—			(67		)
Changes in operating assets and liabilities:
Accounts receivable, net	—			—			(74,649		)	(2,201		)	—			(76,850		)
Inventories	—			—			15,487			(147		)	—			15,340
Prepaid expenses and other assets	—			825			6,780			(680		)	—			6,925
Accounts payable	—			(80		)	9,075			(586		)	—			8,409
Accrued expenses	—			(12,522		)	14,664			(4,918		)	—			(2,776		)
Cash payments on restructuring liabilities	—			—			(201		)	(1,561		)	—			(1,762		)
Other	—			(14		)	(990		)	—			—			(1,004		)
Net cash provided by (used in)
operating activities	—			(7,864		)	56,902			(13,273		)	—			35,765
Cash flows from investing activities:
Acquisitions	—			—			(21,000		)	—			—			(21,000		)
Capital expenditures	—			(1,186		)	(16,836		)	(2,266		)	—			(20,288		)
Proceeds from sale of assets	—			—			88			18			—			106
Net cash used in
investing activities	—			(1,186		)	(37,748		)	(2,248		)	—			(41,182		)
Cash flows from financing activities:
Net revolver borrowings	—			20,000			—			—			—			20,000
Payments on long-term debt	—			(3,225		)	—			—			—			(3,225		)
Proceeds from exercises of employee stock options	—			2,201			—			—			—			2,201
Proceeds from intercompany
investment	—			3,214			(24,567		)	21,353			—			—
Net cash provided by (used in)
financing activities	—			22,190			(24,567		)	21,353			—			18,976
Impact of exchange rate movements on cash	—			—			—			(3,443		)	—			(3,443		)
Net increase (decrease) in cash
and cash equivalents	—			13,140			(5,413		)	2,389			—			10,116
Cash and cash equivalents at the
beginning of the period	—			23,555			(5,845		)	15,452			—			33,162
Cash and cash equivalents at the end
of the period	$	—		$	36,695		$	(11,258	)	$	17,841		$	—		$	43,278

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the nine months ended September 27, 2014
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(18,793	)	$	(18,793	)	$	39,973		$	(15,531	)	$	(5,649	)	$	(18,793	)
Adjustments to reconcile net income (loss)
to cash used in operating activities:
Depreciation and amortization expense	—			486			27,239			6,191			—			33,916
Fair-value premium on purchased inventory	—			—			38			—			—			38
Fair-value decrease of contingent acquisition liability	—			—			(264		)	—			—			(264		)
Non-cash restructuring expense	—			—			—			3,012			—			3,012
Non-cash interest expense, net	—			11,606			—			—			—			11,606
Loss on foreign currency transactions	—			—			—			517			—			517
Non-cash litigation expense	—			—			4,593			—			—			4,593
Loss on modification or extinguishment of debt	—			21,364			—			—			—			21,364
Stock based compensation	—			1,672			—			—			—			1,672
Deferred income taxes	—			—			(22,227		)	5,032			—			(17,195		)
Tax receivable agreement liability adjustment	—			14,419			—			—			—			14,419
Increase in tax uncertainty,
net of valuation allowance	—			—			254			—			—			254
Equity in subsidiaries' net loss	18,793			(24,442		)	—			—			5,649			—
Other	—			—			(50		)	(174		)	—			(224		)
Changes in operating assets and liabilities:
Accounts receivable, net	—			—			(81,439		)	(21,289		)	—			(102,728		)
Inventories	—			—			(17,394		)	(6,680		)	—			(24,074		)
Prepaid expenses and other assets	—			189			2,673			(255		)	—			2,607
Accounts payable	—			(60		)	5,873			9,367			—			15,180
Accrued expenses	—			(18,259		)	11,865			4,926			—			(1,468		)
Cash payments on restructuring liabilities	—			—			(577		)	(3,835		)	—			(4,412		)
Other	—			2			(1,997		)	6,566			—			4,571
Net cash used in
operating activities	—			(11,816		)	(31,440		)	(12,153		)	—			(55,409		)
Cash flows from investing activities:
Acquisitions, net of cash acquired	—			(130,856		)	—			—			—			(130,856		)
Capital expenditures	—			(1,075		)	(11,907		)	(1,542		)	—			(14,524		)
Proceeds from sale of assets	—			—			109			635			—			744
Net cash used in
investing activities	—			(131,931		)	(11,798		)	(907		)	—			(144,636		)
Cash flows from financing activities:
Proceeds from long-term debt	—			1,067,725			—			—			—			1,067,725
Net revolver borrowings	—			20,000			—			—			—			20,000
Payments on long-term debt	—			(853,075		)	—			—			—			(853,075		)
Payment of tender and early call premiums	—			(61,142		)	—			—			—			(61,142		)
Proceeds from intercompany
investment	—			(59,762		)	44,781			14,981			—			—
Proceeds from exercises of employee stock options	—			1,073			—			—			—			1,073
Debt issuance costs paid	—			(16,721		)	—			—			—			(16,721		)
Net cash provided by
financing activities	—			98,098			44,781			14,981			—			157,860
Impact of exchange rate movement
on cash	—			—			—			(834		)	—			(834		)
Net increase (decrease) in cash
and cash equivalents	—			(45,649		)	1,543			1,087			—			(43,019		)
Cash and cash equivalents at the
beginning of the period	—			57,800			(4,970		)	16,971			—			69,801
Cash and cash equivalents at the end
of the period	$	—		$	12,151		$	(3,427	)	$	18,058		$	—		$	26,782

XML

LONG-TERM DEBT - 8.25% Senior Secured Notes due 2018 (Details) - USD ($)				1 Months Ended	9 Months Ended
	Mar. 01, 2014	Jan. 30, 2014	Mar. 13, 2011	Feb. 28, 2011	Oct. 03, 2015	Feb. 16, 2012	Feb. 11, 2011
Eight Point Two Five Senior Secured Notes due 2018 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount						$ 40,000,000	$ 800,000,000
Debt Instrument, Maturity Date					Feb. 15, 2018
Debt Instrument, Interest Rate, Stated Percentage					8.25%		8.25%
Extinguishment of Debt, Amount		$ 705,900,000
Tender offer price, per 1000		1,067.50
Debt instrument, early tender payment price, per 1000		$ 30.00
Debt Instrument, Redemption Price, Percentage	0.00%
Eleven Point Seven Five Senior Secured Notes Due 2013 [Member]
Debt Instrument [Line Items]
Extinguishment of Debt, Amount			$ 400,000	$ 724,600,000

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Oct. 03, 2015

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of Ply Gem Holdings, Inc. and its subsidiaries (referred to herein as “Ply Gem Holdings”, “Ply Gem”, the “Company”, “we”, “us”, or “our”) have been prepared in accordance with U.S. generally accepted accounting principles as described in the consolidated financial statements and related notes included in our 2014 Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 13, 2015.  These statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles and should be read in conjunction with our 2014 Annual Report on Form 10-K.  In management’s opinion, all normal and recurring adjustments considered necessary for a fair presentation have been included.  Operating results for the period from January 1, 2015 through October 3, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited consolidated financial statements of Ply Gem Holdings at that date, but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

The Company’s fiscal quarters are based on periods ending on the Saturday of the last week in the quarter.  Therefore, the financial results of certain fiscal quarters will not be comparable to the prior and subsequent fiscal quarters.  The accompanying financial statements include the Company’s condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended October 3, 2015 and September 27, 2014, the condensed consolidated statements of cash flows for the nine months endedOctober 3, 2015 and September 27, 2014, and the condensed consolidated balance sheets as of October 3, 2015 and December 31, 2014.

Ply Gem is a diversified manufacturer of residential and commercial building products, which are sold primarily in the United States and Canada, and include a wide variety of products for the residential and commercial construction, the do-it-yourself and the professional remodeling and renovation markets.  The demand for the Company’s products is seasonal, particularly in the Northeast and Midwest regions of the United States and Canada where inclement weather during the winter months usually reduces the level of building and remodeling activity in both the home repair and remodeling and new home construction sectors.  The Company’s sales are usually lower during the first and fourth quarters.

To a significant extent our performance is dependent upon the levels of home repair and remodeling and new home construction spending, all of which are affected by such factors as interest rates, inflation, consumer confidence, unemployment, and availability of consumer credit.

Principles of Consolidation

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Ply Gem Holdings and its subsidiaries, all of which are wholly owned.  All intercompany accounts and transactions have been eliminated.

Accounting Policies and Use of Estimates

Accounting Policies and Use of Estimates

The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles involves estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expense during the reporting periods.  Certain of the Company’s accounting policies require the application of judgment in selecting the appropriate assumptions for calculating financial estimates.  By their nature, these judgments are subject to an inherent degree of uncertainty.  The Company periodically evaluates the judgments and estimates used in their critical accounting policies to ensure that such judgments and estimates are reasonable.  Such estimates include the allowance for doubtful accounts receivable, rebates, pensions, valuation of inventories, warranty reserves, insurance reserves, legal contingencies, assumptions used in the calculation of income taxes and the tax receivable agreement liability, projected cash flows used in the goodwill and intangible asset impairment tests, and environmental accruals and other contingencies.  These judgments are based on the Company’s historical experience, current trends and information available from other sources, and are based on management’s best estimates and judgments.  The Company adjusts such estimates and assumptions when facts and circumstances dictate.  Volatile equity markets, foreign currency, and litigation risk have combined to increase the uncertainty inherent in such estimates and assumptions.  If different conditions result from those assumptions used in the Company’s judgments, actual results could be materially different from the Company’s estimates.

Cash and Cash Equivalents

Cash and Cash Equivalents

Cash equivalents consist of short-term highly liquid investments with original maturities of three months or less and which are readily convertible into cash.

Accounts Receivable

Accounts Receivable

Accounts receivable-trade are recorded at their net realizable value.  The allowance for doubtful accounts was $4.7 million at October 3, 2015 and $4.2 million at December 31, 2014.  The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. The Company estimates the allowance for doubtful accounts based on a variety of factors including the length of time receivables are past due, the financial health of its customers, unusual macroeconomic conditions and historical experience. If the financial condition of its customers deteriorates or other circumstances occur that result in an impairment of customers’ ability to make payments, the Company records additional allowances as needed. The Company writes off uncollectible trade accounts receivable against the allowance for doubtful accounts when collection efforts have been exhausted and/or any legal action taken by the Company has concluded.

Inventories

Inventories

Inventories in the accompanying condensed consolidated balance sheets are valued at the lower of cost or market and are determined primarily by the first-in, first-out (FIFO) method.  The Company records provisions, as appropriate, to write-down obsolete and excess inventory to estimated net realizable value.  The process for evaluating obsolete and excess inventory often requires the Company to make subjective judgments and estimates concerning future sales levels, quantities and prices at which such inventory will be able to be sold in the normal course of business.  Accelerating the disposal process or incorrect estimates of future sales potential may cause actual results to differ from the estimates at the time such inventory is disposed or sold. As of October 3, 2015, the Company had inventory purchase commitments related to supply agreements for aluminum and glass of approximately $16.8 million.

Inventory reserves were approximately $9.1 million at October 3, 2015, decreasing during the nine months endedOctober 3, 2015 by $1.5 million compared to the December 31, 2014 reserve balance of approximately $10.6 million.

Property and Equipment

Property and Equipment

Property and equipment are presented at cost.  Depreciation of property and equipment are provided on a straight-line basis over estimated useful lives, which are generally as follows: 

Buildings and improvements	10-37 years
Machinery and equipment, including leases	3-15 years
Leasehold improvements	Term of lease or useful life, whichever is shorter

Expenditures for maintenance and repairs are expensed when incurred. Expenditures for renewals and betterments are capitalized.  When assets are sold, or otherwise disposed, the cost and related accumulated depreciation are eliminated and the resulting gain or loss is recognized in operations.  

Long-lived assets

Long-lived assets

The Company reviews long-lived assets for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets may not be fully recoverable.  The Company performs an undiscounted operating cash flow analysis to determine if impairment exists.  If an impairment is determined to exist, any related impairment loss is calculated based on the asset’s fair value and the discounted cash flows.

The Company tests for long-lived asset impairment at the following asset group levels: (i) the combined U.S. Siding, Fencing and Stone companies in the Siding, Fencing and Stone segment (“Siding”), (ii) the combined U.S. Windows companies in the Windows and Doors segment (“U.S. Windows”), (iii) the combined Simonton windows companies in the Windows and Doors segment, (iv) Gienow Canada Inc. ("Gienow Canada") (a combined Western Canadian company created by the January 2014 amalgamation of the Company's legacy Western Canadian business and the Gienow entity acquired in April 2013) in the Windows and Doors segment, and (v) Mitten in the Siding, Fencing and Stone segment. For purposes of recognition and measurement of an impairment loss, a long-lived asset or asset group should represent the lowest level for which an entity can separately identify cash flows that are largely independent of the cash flows of other assets and liabilities.  There were no indicators of impairment during the three and nine months ended October 3, 2015.

Goodwill and other intangible assets

Goodwill and other intangible assets

The Company evaluates goodwill for impairment on an annual basis and whenever events or business conditions warrant.  All other intangible assets are amortized over their estimated useful lives and are assessed for impairment as necessary.  The Company assesses goodwill for impairment at the November month end each year and also at any other date when events or changes in circumstances indicate that the carrying value of these assets may exceed their fair value.  To evaluate goodwill for impairment, the Company estimates the fair value of reporting units considering such factors as discounted cash flows and valuation multiples for comparable publicly traded companies.  A significant reduction in projected sales and earnings, which would lead to a reduction in future cash flows, could indicate potential impairment.  There were no indicators of impairment during the three and nine months ended October 3, 2015 that would trigger an interim impairment test.  The Company will continue to evaluate goodwill during future periods and future declines in the residential housing and repair and remodeling markets could result in goodwill impairments.

Debt Issuance Costs

Debt Issuance Costs

Debt issuance costs, composed of facility, agency, and certain legal fees associated with issuing new debt financing, are amortized over the contractual term of the related agreement using the effective interest method.  Net debt issuance costs totaled approximately $21.5 million and $23.8 million as of October 3, 2015 and December 31, 2014, respectively, and have been recorded in other long term assets in the accompanying condensed consolidated balance sheets. Amortization of debt issuance costs for the three months ended October 3, 2015 and September 27, 2014 was approximately $0.8 million and $0.8 million, respectively. Amortization of debt issuance costs for the nine months endedOctober 3, 2015 and September 27, 2014 was approximately $2.3 million and $2.8 million, respectively. Amortization of debt issuance costs is recorded in interest expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss).

Income Taxes

Income Taxes

The Company utilizes the asset and liability method of accounting for income taxes which requires that deferred tax assets and liabilities be recorded to reflect the future tax consequences of temporary differences between the book and tax basis of various assets and liabilities.  Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.  The effect of changes in tax rates on deferred tax assets and liabilities is recognized as income or expense in the period in which the rate change occurs.  A valuation allowance is established to offset any deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

Estimates are required with respect to, among other things, the appropriate state income tax rates used in the various states that the Company and its subsidiaries are required to file, the potential utilization of operating and capital loss carry-forwards for both federal and state income tax purposes and valuation allowances required, if any, for tax assets that may not be realized in the future.  The Company establishes reserves when, despite our belief that our tax return positions are fully supportable, certain positions could be challenged, and the positions may not be fully sustained.  The Company along with its U.S. subsidiaries file a consolidated federal income tax return, separate state income tax returns, combined state returns, and unitary state returns. Gienow Canada and Mitten both file separate Canadian federal income tax returns and separate provincial returns. Simonton has joined the filing of the consolidated U.S. federal returns. Simonton has also joined the filings of certain combined and unitary state income tax returns as well as continued to file certain state returns on a separate company basis.

Tax receivable agreement ("TRA") liability

As a result of the Company’s full tax valuation allowance position, the Company’s methodology for calculating the TRA liability considers expectations regarding (i) current year taxable income only (due to the uncertainty of future taxable income associated with the Company’s cumulative loss position) and (ii) future income due to the expected reversals of deferred tax liabilities. During the three months ended October 3, 2015, the Company estimated its projected taxable income for the full year ending December 31, 2015 based on the Company’s 2015 estimates. However, the Company’s methodology to estimate the TRA liability excludes forecasts for fiscal years subsequent to 2015 because such future forecasts and projections cannot be relied upon based on the negative evidence from the Company’s three year cumulative loss position. For fiscal year 2015, the Company estimated to be in a taxable income position; however, this taxable income estimate was not sufficient to outweigh the negative evidence or alleviate the Company’s three year cumulative loss position. In addition to projecting the Company’s current year taxable income estimate, the Company considered the reversals of deferred tax assets and deferred tax liabilities.

Environmental

Environmental

The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Environmental remediation obligation accruals are adjusted as further information develops or circumstances change.  Costs of future expenditures for environmental remediation obligations are not discounted to their present value.  Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable.

Commitments and Contingencies, Policy

Commitments and Contingencies

The Company accrues for all direct costs associated with the estimated resolution of contingencies at the earliest date at which it is deemed probable that a liability has been incurred and the amount of such liability can be reasonably estimated.  Costs accrued have been estimated based upon an analysis of potential results, assuming a combination of litigation and settlement strategies and outcomes. Insurance recoveries are recorded as assets when their receipt is deemed probable.

Foreign Currency

Foreign Currency

Gienow Canada and Mitten, the Company’s Canadian subsidiaries, utilize the Canadian dollar as their functional currency.  For reporting purposes, the Company translates the assets and liabilities of its foreign entities at the exchange rates in effect at period-end.  Net sales and expenses are translated using average exchange rates in effect during the period.  Gains and losses from foreign currency translation are credited or charged to accumulated other comprehensive income or loss in the accompanying condensed consolidated balance sheets.

The Company recorded a loss from foreign currency transactions of approximately $1.1 million for the three months ended October 3, 2015 and a loss of approximately $0.8 million for the three months ended September 27, 2014. The Company recorded a loss from foreign currency transactions of approximately $2.1 million for the nine months ended October 3, 2015 and a loss of approximately $0.5 million for the nine months ended September 27, 2014. During the nine months ended October 3, 2015 and September 27, 2014, accumulated other comprehensive loss included a currency translation adjustment of approximately $11.3 million and $5.4 million, respectively.

Derivatives, Policy [Policy Text Block]

Derivative Financial Instruments

During the year ended December 31, 2014, the Company entered into a foreign currency forward contract agreement to hedge approximately $49.7 million of its 2015 non-functional currency inventory purchases to protect the Company from variability in cash flows attributable to changes in the U.S. dollar relative to the Canadian dollar.

The Company has designated this forward contract as a cash flow hedge. As a cash flow hedge, unrealized gains are recognized as assets while unrealized losses are recognized as liabilities. The forward contract agreement is highly correlated to the changes in foreign currency rates to which the Company is exposed. Unrealized gains and losses on this agreement are designated as effective or ineffective. The effective portion of such gains or losses is recorded as a component of accumulated other comprehensive income or loss, while the ineffective portion of such gains or losses is recorded as a component of cost of goods sold. Future realized gains and losses in connection with each inventory purchase will be reclassified from accumulated other comprehensive income or loss to cost of goods sold.

The changes in fair values of derivatives that have been designated and qualify as cash flow hedges are recorded in accumulated other comprehensive income or loss and are reclassified into cost of goods sold in the same period the hedged item affects earnings. Due to the high degree of effectiveness between the hedging instrument and the underlying exposures being hedged, fluctuations in the value of the derivative instrument are generally offset by changes in the fair value or cash flows of the underlying exposures being hedged. The changes in the fair value of derivatives that do not qualify as effective are immediately recognized in earnings.

The gains and losses on the derivative contract that are reclassified from accumulated other comprehensive income or loss to current period earnings are included in the line item in which the hedged item is recorded in the same period the forecasted transaction affects earnings. As of October 3, 2015, approximately $1.4 million of the deferred net asset on derivative instruments included in accumulated other comprehensive loss is expected to be reclassified against cost of goods sold during the next three months. This expectation is based on the expected timing of the occurrence of the hedged forecasted transactions. During the three and nine months ended October 3, 2015, the Company recognized $1.8 million and $3.9 million within earnings as a reduction of cost of goods sold in the condensed consolidated statement of operations. During the three and nine months ended September 27, 2014, the Company recognized $0.2 million and $0.4 million within earnings as an increase to cost of goods sold in the condensed consolidated statement of operations.

The fair value of the foreign currency forward contract agreement is estimated using industry standard valuation models using market-based observable inputs, including spot rates, forward points, interest rates and volatility inputs (Level 2).

Fair Value Measurement

Fair Value Measurement

The accounting standard for fair value discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flows), and the cost approach (cost to replace the service capacity of an asset or replacement cost). The standard utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

• Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

• Level 3: Inputs that reflect the reporting entity’s own assumptions.

The hierarchy requires the use of observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.  The fair value of the long-term debt instruments was determined by utilizing available market information.  The carrying value of the Company’s other assets and liabilities approximates their fair value. 

Earnings (loss) per common share

Earnings (Loss) Per Common Share

Basic earnings (loss) per share ("EPS") is computed based upon weighted-average shares outstanding during the period. Dilutive earnings per share is computed consistently with the basic computation while giving effect to all dilutive potential common shares and common share equivalents that were outstanding during the period. Ply Gem Holdings uses the treasury stock method to reflect the potential dilutive effect of unvested stock awards and unexercised options.

The Company was in a net loss position for the nine months ended September 27, 2014 and therefore the impact of stock options and unvested restricted stock were excluded from the computation of diluted earnings (loss) per share for that specific period, as the inclusion of such amounts would be anti-dilutive.

The computation of the dilutive effect of other potential common shares included options and unvested restricted stock representing approximately 0.1 million shares of common stock for the three months ended October 3, 2015 and approximately 0.1 million shares of common stock for the nine months endedOctober 3, 2015. The computation of the dilutive effect of other potential common shares included options and unvested restricted stock representing approximately 0.1 million shares of common stock for the three months ended September 27, 2014 and excluded approximately 0.1 million shares of common stock for the nine months endedSeptember 27, 2014, respectively.

New accounting pronouncements

New Accounting Pronouncements

In April 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update ("ASU") No. 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has or will have a major effect on an entity’s operations and financial results. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2014, which means the first quarter of Ply Gem's fiscal year 2015, with early adoption permitted. The guidance applies prospectively to new disposals and new classifications of disposal groups as held for sale after the effective date. The adoption of this new guidance did not affect the Company's consolidated financial position, results of operations or cash flows.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which completes the joint effort by the FASB and the International Accounting Standards Board to clarify the principles for recognizing revenue and improve financial reporting by creating common revenue recognition guidance for U.S. generally accepted accounting principles ("GAAP") and International Financial Reporting Standards ("IFRS"). ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using IFRS and GAAP. The core principle of this update is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB finalized a one-year deferral of the effective date of the new revenue recognition standard. The new standard will become effective for Ply Gem beginning with the first quarter of 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. The method of adoption has not been determined yet by the Company. The Company is currently reviewing the revised guidance and assessing the potential impact on the consolidated financial statements.

In January 2015, the FASB issued ASU No. 2015-01, Income Statement-Extraordinary and Unusual Items, which eliminates from GAAP the concept of extraordinary items and the requirement that an entity separately classify, present and disclose extraordinary events and transactions. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016. The guidance can be applied retrospectively or prospectively. This new guidance is not expected to affect the Company's consolidated financial position, results of operations or cash flows.

In February 2015, the FASB issued ASU No. 2015-02, Consolidation, which adjusts the determination of whether an entity is a variable interest entity ("VIE") through various assessment criteria including fees paid to the decision maker within the entity or service provider, related party tests regarding indirect interests, among other others. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016, with early adoption permitted. The guidance can be applied with a modified retrospective approach with a cumulative-effect adjustment to equity as of the beginning of the fiscal year of adoption or retrospectively. This new guidance is not expected to affect the Company's consolidated financial position, results of operations or cash flows.    

In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Additionally, in August 2015, the FASB issued ASU No. 2015-15, Interest-Imputation of Interest, which specifies that debt issuance costs related to line-of-credit arrangements can still be presented as an asset and amortized ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016, with early adoption permitted. The guidance applies retrospectively to all debt issuance costs. This new guidance is expected to change classification in the Company's consolidated financial position with no impact on the results of operations or cash flows.

In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-use Software, which provides guidance on the accounting for fees paid by a customer in a cloud computing arrangement as it relates to whether the arrangement includes the sale or license of software. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2015, which means the first quarter of Ply Gem's fiscal year 2016, with early adoption permitted. The guidance can be applied retrospectively or prospectively. This new guidance is expected to change classification in the Company's consolidated financial position with no impact on the results of operations or cash flows.

In July 2015, the FASB issued ASU No. 2015-11, Simplifying the Measurement of Inventory, which requires measurement of in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The change is effective for fiscal years, and interim reporting periods within those years, beginning on or after December 15, 2016, which means the first quarter of Ply Gem's fiscal year 2017. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact the adoption of this standard will have on its consolidated financial statements.

In September 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments ("ASU No. 2015-16"),which requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. ASU 2015-16 is effective for fiscal years, and interim reporting periods within those fiscal years, beginning after December 15, 2015. The Company is still evaluating the impact that its adoption of ASU 2015-16 will have on its consolidated financial position or results of operations.

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COMPREHENSIVE INCOME (LOSS) (Tables)

9 Months Ended

Oct. 03, 2015

Equity [Abstract]

Schedule of comprehensive income (loss)

Comprehensive income (loss), net of tax is comprised of the following:

(Amounts in thousands)	For the three months ended						For the nine months ended
	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Net income (loss)	$	41,711		$	21,405		$	23,224		$	(18,793	)
Foreign currency translation adjustment	(4,121		)	(5,009		)	(11,291		)	(5,366		)
Unrealized gain (loss) on derivative instruments	(826		)	886			145			(47		)
Comprehensive income (loss)	$	36,764		$	17,282		$	12,078		$	(24,206	)

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LONG-TERM DEBT - 6.50% Senior Notes due 2022 (Details) - USD ($)	9 Months Ended
	Oct. 03, 2015	Jan. 23, 2015	Sep. 19, 2014	Sep. 05, 2014	Jan. 30, 2014
Six Point Five Senior Notes tack on due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Unamortized Discount			$ 10,100,000
Debt Instrument, Face Amount		$ 150,000,000
Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 500,000,000	$ 500,000,000
Debt Instrument, Maturity Date	Feb. 01, 2022
Debt Instrument, Interest Rate, Effective Percentage					8.48%
Long-term Debt, Required Interest Coverage Ratio	2.00
Debt Instrument, Minimum Interest Coverage Ratio Required for Incurring Additional Debt	4.00
Prior to February 1, 2017 [Member] | Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
Long-term Debt, Redemption Price, Percentage of Outstanding Principal	100.00%
Prior to February 1, 2017 [Member] | Six Point Five Senior Notes due 2022 [Member] | Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Long-term Debt, Redemption Price Plus Premium, Percentage of Outstanding Principal	106.50%
Prior to February 1, 2017 [Member] | Maximum [Member] | Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
Long-term Debt, Authorized Redemption Amount, Percentage of Outstanding Principal at 106 Point 50 Redemption Price	40.00%
equity offering threshold [Member] | Prior to February 1, 2017 [Member] | Six Point Five Senior Notes due 2022 [Member] | Debt Instrument, Redemption, Period One [Member]
Debt Instrument [Line Items]
Long-term Debt, Required Remaining Amount Outstanding for Redemption at 106 Point 50 Percent	50.00%
Debt Limitation One [Member] | Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
Maximum borrowing threshold on credit facility under six point five percent notes	$ 350,000,000
Maximum indebtedness under six point five percent notes	575,000,000
Purchase Money Indebtedness [Member] | Debt Limitation Two [Member] | Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
Purchase money indebtedness threshold under six point five percent notes	35,000,000
Purchase Money Indebtedness [Member] | Debt Limitation Three [Member] | Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
Purchase money indebtedness threshold under six point five percent notes	0.10
Debt of Foreign Subsidiaries [Member] | Debt Limitation Two [Member] | Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
foreign debt threshold under the six point five percent notes	60,000,000
Debt of Foreign Subsidiaries [Member] | Debt Limitation Three [Member] | Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
foreign debt threshold under the six point five percent notes	0.15
General debt basket [Member] | Debt Limitation Two [Member] | Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
general debt basket threshold under the six point five percent notes	75,000,000
General debt basket [Member] | Debt Limitation Three [Member] | Six Point Five Senior Notes due 2022 [Member]
Debt Instrument [Line Items]
general debt basket threshold under the six point five percent notes	$ 0.20

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Derivatives (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Dec. 31, 2014
Accounting Policies [Abstract]
Foreign Currency Cash Flow Hedge Liability at Fair Value	$ 1,439		$ 1,439		$ 1,294
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	$ 1,800	$ (200)	$ 3,900	$ (400)
Derivative, Notional Amount					$ 49,700

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014
Cash flows from operating activities:
Net income (loss)	$ 23,224	$ (18,793)
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities:
Depreciation and amortization expense	44,308	33,916
Fair-value premium on purchased inventory	54	38
Restructuring Costs	805	3,012
Non-cash interest expense, net	9,988	11,606
Loss on foreign currency transactions	2,101	517
Business Acquisition, Contingent Consideration [Line Items]
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	0	(264)
Loss Contingency, Loss in Period	(3,210)
Gains (Losses) on Extinguishment of Debt	0	21,364
Stock based compensation	1,642	1,672
Deferred income taxes	(4,328)	(17,195)
Tax receivable agreement liability adjustment	13,467	14,419
Increase in tax uncertainty, net of valuation allowance	(501)	254
Unrecognized Tax Benefits, Period Increase (Decrease)	(500)
Other	(67)	(224)
Changes in operating assets and liabilities:
Accounts receivable, net	(76,850)	(102,728)
Inventories	15,340	(24,074)
Prepaid expenses and other assets	6,925	2,607
Accounts payable	8,409	15,180
Accrued expenses	(2,776)	(1,468)
Cash payments on restructuring liabilities	(1,762)	(4,412)
Other	(1,004)	4,571
Net cash provided by (used in) operating activities	35,765	(55,409)
Cash flows from investing activities:
Capital expenditures	(20,288)	(14,524)
Acquisitions, net of cash acquired	(21,000)	(130,856)
Proceeds from sale of assets	106	744
Net cash used in investing activities	(41,182)	(144,636)
Cash flows from financing activities:
Proceeds from long-term debt	0	1,067,725
Net revolver borrowings	20,000	20,000
Payments of long-term debt	(3,225)	(853,075)
Payment of early call premium	0	(61,142)
Proceeds from Stock Options Exercised	2,201	1,073
Debt issuance costs paid	0	(16,721)
Net cash provided by financing activities	18,976	157,860
Impact of exchange rate movements on cash	(3,443)	(834)
Net increase (decrease) in cash and cash equivalents	10,116	(43,019)
Cash and cash equivalents at the beginning of the period	33,162	69,801
Cash and cash equivalents at the end of the period	$ 43,278	26,782
class action settlement [Member]
Business Acquisition, Contingent Consideration [Line Items]
Loss Contingency, Loss in Period		$ 4,593

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COMPREHENSIVE INCOME (LOSS)

9 Months Ended

Oct. 03, 2015

Equity [Abstract]

COMPREHENSIVE INCOME (LOSS)

COMPREHENSIVE INCOME (LOSS)

Comprehensive income (loss), net of tax is comprised of the following:

(Amounts in thousands)	For the three months ended						For the nine months ended
	October 3, 2015			September 27, 2014			October 3, 2015			September 27, 2014
Net income (loss)	$	41,711		$	21,405		$	23,224		$	(18,793	)
Foreign currency translation adjustment	(4,121		)	(5,009		)	(11,291		)	(5,366		)
Unrealized gain (loss) on derivative instruments	(826		)	886			145			(47		)
Comprehensive income (loss)	$	36,764		$	17,282		$	12,078		$	(24,206	)

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INCOME TAXES (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 03, 2015	Sep. 27, 2014	Oct. 03, 2015	Sep. 27, 2014	Dec. 31, 2014
Income Tax Contingency [Line Items]
Estimated effective income tax rate			7.10%
Estimated effective income tax rate including discrete items			8.20%
Tax expense	$ 2,100,000		$ 1,800,000
Deferred tax liability resulting from goodwill	6,800,000		6,800,000
Increase in tax contingency reserve			500,000
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities			700,000
Unrecognized Tax Benefits, Income Tax Penalties Accrued	400,000		400,000
Unrecognized Tax Benefits, Interest on Income Taxes Expense			200,000
Tax receivable agreement adjustment	(1,712,000)	$ 13,988,000	13,467,000	$ 14,419,000
tax receivable agreement payable	24,384,000		24,384,000		$ 10,917,000
estimate of maximum liability [Member]
Income Tax Contingency [Line Items]
tax receivable agreement payable	100,000,000		100,000,000
eighty five percentage receivable by affiliate [Member]
Income Tax Contingency [Line Items]
Tax receivable agreement adjustment			0.85
fifteen percent retained by Ply Gem [Member]
Income Tax Contingency [Line Items]
Tax receivable agreement adjustment			0.15
foreign jurisdiction [Member]
Income Tax Contingency [Line Items]
Book goodwill not amortized	$ 31,000,000		$ 31,000,000

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LONG-TERM DEBT (Tables)

9 Months Ended

Oct. 03, 2015

Extinguishment of Debt [Line Items]

Schedule of Long-term Debt Instruments

Long-term debt in the accompanying condensed consolidated balance sheets at October 3, 2015 and December 31, 2014 consists of the following:

(Amounts in thousands)
	October 3, 2015			December 31, 2014
Senior secured asset based revolving credit facility	$	20,000		$	—
Term Loan due 2021, net of unamortized early tender premium
and discount of $29,174 and $32,518, respectively	394,376			394,257
6.50% Senior notes due 2022, net of unamortized early tender premium
and discount of $46,714 and $51,040, respectively	603,286			598,960
	$	1,017,662		$	993,217
Less current portion of long-term debt	(4,300		)	(4,300		)
	$	1,013,362		$	988,917

Schedule of Extinguishment and Modification of Debt [Table Text Block]

Based on the January 2014 Refinancing, the Company recognized a loss on debt modification or extinguishment of approximately $21.4 million for the nine months endedSeptember 27, 2014, as summarized in the table below. There was no loss on debt modification or extinguishment in the three and nine months ended October 3, 2015 or the three months ended September 27, 2014.

(Amounts in thousands)	For the nine months ended
	October 3, 2015		September 27, 2014
Loss on extinguishment of debt:
Tender premium	$	—	$	(8,493	)
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized discount	—		(4,773		)
8.25% Senior Secured Notes and 9.375% Senior Notes unamortized debt issuance costs	—		(2,067		)
Term Loan Facility unamortized discount	—		(255		)
	—		(15,588		)
Loss on modification of debt:
Third party fees for 8.25% Senior Secured Notes and 9.375% Senior Notes	—		(302		)
Third party fees for 6.50% Senior Notes and Term Loan Facility	—		(5,474		)
	—		(5,776		)
Total loss on modification or extinguishment of debt	$	—	$	(21,364	)

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property and Equipment (Details)

9 Months Ended

Oct. 03, 2015

Derivatives, Fair Value [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

A summary of the recorded asset included in the accompanying condensed consolidated balance sheets is as follows:

(Amounts in thousands)
	October 3, 2015		December 31, 2014
Foreign currency hedge (included in other current assets)	$	1,439	$	1,294

Building and improvements [Member] | Minimum [Member]

Property and Equipment [Line Items]

Estimated useful life

10 years

Building and improvements [Member] | Maximum [Member]

Property and Equipment [Line Items]

Estimated useful life

37 years

Machinery and equipment, including leases [Member] | Minimum [Member]

Property and Equipment [Line Items]

Estimated useful life

3 years

Machinery and equipment, including leases [Member] | Maximum [Member]

Property and Equipment [Line Items]

Estimated useful life

15 years

Leasehold improvements [Member]

Property and Equipment [Line Items]

Property plant and equipment useful life description

Term of lease or useful life, whichever is shorter

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GUARANTOR/NON-GUARANTOR FINANCIAL INFORMATION

9 Months Ended

Oct. 03, 2015

GUARANTOR / NON GUARANTOR FINANCIAL INFORMATION [Abstract]

GUARANTOR / NON-GUARANTOR FINANCIAL INFORMATION

15.   GUARANTOR/NON-GUARANTOR

The 6.50% Senior Notes were issued by our direct 100% owned subsidiary, Ply Gem Industries, and are fully and unconditionally guaranteed on a joint and several basis by the Company and certain of Ply Gem Industries’ 100% owned subsidiaries.  Ply Gem Industries is a 100% owned subsidiary of Ply Gem Holdings. Accordingly, the following guarantor and non-guarantor information is presented as of October 3, 2015 and December 31, 2014, and for the three and nine months ended October 3, 2015 and September 27, 2014.  The non-guarantor information presented represents our Canadian subsidiaries: Gienow and Mitten.

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Three months ended October 3, 2015
	Guarantor		Issuer						Non-
	Ply Gem		Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.		Industries, Inc.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
Net sales	$	—	$	—		$	468,789		$	62,095		$	—		$	530,884
Cost of products sold	—		—			350,646			45,457			—			396,103
Gross profit	—		—			118,143			16,638			—			134,781
Operating expenses:
Selling, general and
administrative expenses	—		7,919			46,394			12,045			—			66,358
Intercompany administrative
charges	—		—			6,554			1,452			(8,006		)	—
Amortization of intangible assets	—		—			5,346			1,076			—			6,422
Total operating expenses	—		7,919			58,294			14,573			(8,006		)	72,780
Operating earnings (loss)	—		(7,919		)	59,849			2,065			8,006			62,001
Foreign currency loss	—		—			—			(1,069		)	—			(1,069		)
Intercompany interest	—		15,882			(13,880		)	(2,002		)	—			—
Interest expense	—		(18,840		)	—			—			—			(18,840		)
Interest income	—		1			11			9			—			21
Tax receivable agreement liability adjustment	—		1,712			—			—			—			1,712
Intercompany administrative income	—		8,006			—			—			(8,006		)	—
Income (loss) before equity in
subsidiaries' income (loss)	—		(1,158		)	45,980			(997		)	—			43,825
Equity in subsidiaries' income (loss)	41,711		42,869			—			—			(84,580		)	—
Income (loss) before provision
(benefit) for income taxes	41,711		41,711			45,980			(997		)	(84,580		)	43,825
Provision (benefit) for income taxes	—		—			1,753			361			—			2,114
Net income (loss)	$	41,711	$	41,711		$	44,227		$	(1,358	)	$	(84,580	)	$	41,711
Other comprehensive income (loss):
Foreign currency translation adjustments	—		—			—			(4,121		)	—			(4,121		)
Unrealized loss on derivative instrument	—		—			—			(826		)	—			(826		)
Total comprehensive income (loss)	$	41,711	$	41,711		$	44,227		$	(6,305	)	$	(84,580	)	$	36,764

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
Three months ended September 27, 2014
	Guarantor		Issuer						Non-
	Ply Gem		Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.		Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Net sales	$	—	$	—		$	352,856		$	84,992		$	—		$	437,848
Cost of products sold	—		—			275,938			63,321			—			339,259
Gross profit	—		—			76,918			21,671			—			98,589
Operating expenses:
Selling, general and
administrative expenses	—		6,602			28,502			16,251			—			51,355
Intercompany administrative
charges	—		—			4,528			1,047			(5,575		)	—
Amortization of intangible assets	—		—			4,008			1,299			—			5,307
Total operating expenses	—		6,602			37,038			18,597			(5,575		)	56,662
Operating earnings (loss)	—		(6,602		)	39,880			3,074			5,575			41,927
Foreign currency loss	—		—			—			(766		)	—			(766		)
Intercompany interest	—		13,328			(11,723		)	(1,605		)	—			—
Interest expense	—		(16,296		)	(4		)	—			—			(16,300		)
Interest income	—		1			4			13			—			18
Tax receivable agreement liability adjustment	—		(13,988		)	—			—			—			(13,988		)
Intercompany administrative income	—		5,575			—			—			(5,575		)	—
Income (loss) before equity in
subsidiaries' income	—		(17,982		)	28,157			716			—			10,891
Equity in subsidiaries' income	21,405		39,387			—			—			(60,792		)	—
Income before provision
(benefit) for income taxes	21,405		21,405			28,157			716			(60,792		)	10,891
Provision (benefit) for income taxes	—		—			(11,159		)	645			—			(10,514		)
Net income	$	21,405	$	21,405		$	39,316		$	71		$	(60,792	)	$	21,405
Other comprehensive income (loss):
Foreign currency translation adjustments	—		—			—			(5,009		)	—			(5,009		)
Unrealized gain on derivative instrument	—		—			—			886			—			886
Total comprehensive income (loss)	$	21,405	$	21,405		$	39,316		$	(4,052	)	$	(60,792	)	$	17,282

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
As of October 3, 2015
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
ASSETS	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
Current Assets:
Cash and cash equivalents	$	—		$	36,695		$	(11,258	)	$	17,841		$	—		$	43,278
Accounts receivable, net	—			—			236,079			31,916			—			267,995
Inventories:
Raw materials	—			—			69,630			6,037			—			75,667
Work in process	—			—			20,312			1,807			—			22,119
Finished goods	—			—			51,233			16,154			—			67,387
Total inventory	—			—			141,175			23,998			—			165,173
Prepaid expenses and other
current assets	—			952			22,153			4,939			—			28,044
Deferred income taxes	—			—			8,542			—			—			8,542
Total current assets	—			37,647			396,691			78,694			—			513,032
Investments in subsidiaries	(80,770		)	(184,858		)	—			—			265,628			—
Property and Equipment, at cost:
Land	—			—			7,387			777			—			8,164
Buildings and improvements	—			—			61,295			4,633			—			65,928
Machinery and equipment	—			3,394			353,604			17,184			—			374,182
	—			3,394			422,286			22,594			—			448,274
Less accumulated depreciation	—			(1,658		)	(281,738		)	(8,861		)	—			(292,257		)
Total property and equipment, net	—			1,736			140,548			13,733			—			156,017
Other Assets:
Intangible assets, net	—			—			117,203			18,153			—			135,356
Goodwill	—			—			449,492			29,838			—			479,330
Intercompany note receivable	—			1,104,510			—			—			(1,104,510		)	—
Other	—			23,804			3,601			—			—			27,405
Total other assets	—			1,128,314			570,296			47,991			(1,104,510		)	642,091
	$	(80,770	)	$	982,839		$	1,107,535		$	140,418		$	(838,882	)	$	1,311,140
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	—		$	159		$	77,261		$	15,958		$	—		$	93,378
Accrued expenses	—			13,371			118,239			19,133			—			150,743
Current portion of long-term debt	—			4,300			—			—			—			4,300
Total current liabilities	—			17,830			195,500			35,091			—			248,421
Deferred income taxes	—			—			14,941			5,364			—			20,305
Intercompany note payable	—						998,056			106,454			(1,104,510		)	—
Payable to related parties pursuant to
tax receivable agreement	—			24,384			—			—			—			24,384
Other long-term liabilities	—			8,033			73,494			3,911			—			85,438
Long-term debt, less current portion	—			1,013,362			—			—			—			1,013,362
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	—			—			—			—			—			—
Common stock	681			681			—			—			(681		)	681
Additional paid-in-capital	748,965			748,965			437,178			21,521			(1,207,664		)	748,965
(Accumulated deficit) retained earnings	(799,288		)	(799,288		)	(597,096		)	(21,142		)	1,417,526			(799,288		)
Accumulated other
comprehensive loss	(31,128		)	(31,128		)	(14,538		)	(10,781		)	56,447			(31,128		)
Total stockholders' (deficit) equity	(80,770		)	(80,770		)	(174,456		)	(10,402		)	265,628			(80,770		)
	$	(80,770	)	$	982,839		$	1,107,535		$	140,418		$	(838,882	)	$	1,311,140

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
As of December 31, 2014
	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
(Amounts in thousands)	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—		$	23,555		$	(5,845	)	$	15,452		$	—		$	33,162
Accounts receivable, net	—			—			153,791			33,888			—			187,679
Inventories:
Raw materials	—			—			65,772			10,695			—			76,467
Work in process	—			—			32,653			1,725			—			34,378
Finished goods	—			—			54,415			14,653			—			69,068
Total inventory	—			—			152,840			27,073			—			179,913
Prepaid expenses and other
current assets	—			1,044			25,840			4,924			—			31,808
Deferred income taxes	—			—			7,680			—			—			7,680
Total current assets	—			24,599			334,306			81,337			—			440,242
Investments in subsidiaries	(96,668		)	(64,046		)	—			—			160,714			—
Property and Equipment, at cost:
Land	—			—			7,085			882			—			7,967
Buildings and improvements	—			—			60,211			5,447			—			65,658
Machinery and equipment	—			2,794			348,951			16,974			—			368,719
	—			2,794			416,247			23,303			—			442,344
Less accumulated depreciation	—			(2,083		)	(271,156		)	(8,138		)	—			(281,377		)
Total property and equipment, net	—			711			145,091			15,165			—			160,967
Other Assets:
Intangible assets, net	—			—			123,333			24,376			—			147,709
Goodwill	—			—			442,233			33,879			—			476,112
Intercompany note receivable	—			953,510			—			—			(953,510		)	—
Other	—			26,784			2,761			—			—			29,545
Total other assets	—			980,294			568,327			58,255			(953,510		)	653,366
	$	(96,668	)	$	941,558		$	1,047,724		$	154,757		$	(792,796	)	$	1,254,575
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Accounts payable	$	—		$	239		$	66,452		$	17,473		$	—		$	84,164
Accrued expenses	—			19,907			110,290			17,128			—			147,325
Current portion of long-term debt	—			4,300			—			—			—			4,300
Total current liabilities	—			24,446			176,742			34,601			—			235,789
Deferred income taxes	—			—			14,719			6,087			—			20,806
Intercompany note payable	—			—			844,258			109,252			(953,510		)	—
Payable to related parties pursuant to
tax receivable agreement	—			10,917			—			—			—			10,917
Other long-term liabilities	—			13,946			76,923			3,945			—			94,814
Long-term debt	—			988,917			—			—			—			988,917
Commitments and contingencies
Stockholders' Equity (Deficit):
Preferred stock	—			—			—			—			—			—
Common stock	679			679			—			—			(679		)	679
Additional paid-in-capital	745,140			745,140			602,801			16,010			(1,363,951		)	745,140
(Accumulated deficit) retained earnings	(822,512		)	(822,512		)	(653,181		)	(9,701		)	1,485,394			(822,512		)
Accumulated other
comprehensive income (loss)	(19,975		)	(19,975		)	(14,538		)	(5,437		)	39,950			(19,975		)
Total stockholders' (deficit) equity	(96,668		)	(96,668		)	(64,918		)	872			160,714			(96,668		)
	$	(96,668	)	$	941,558		$	1,047,724		$	154,757		$	(792,796	)	$	1,254,575

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the nine months ended October 3, 2015
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiaries			Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	23,224		$	23,224		$	56,085		$	(11,441	)	$	(67,868	)	$	23,224
Adjustments to reconcile net income (loss)
to cash provided by (used in) operating activities:
Depreciation and amortization expense	—			250			38,703			5,355			—			44,308
Fair-value premium on purchased inventory	—			—			54			—			—			54
Non-cash restructuring costs	—			—			—			805			—			805
Non-cash interest expense, net	—			9,988			—			—			—			9,988
Loss on foreign currency transactions	—			—			—			2,101			—			2,101
Non-cash litigation expense	—			—			(3,210		)	—			—			(3,210		)
Stock based compensation	—			1,642			—			—			—			1,642
Deferred income taxes	—			—			(4,328		)	—			—			(4,328		)
Tax receivable agreement liability adjustment	—			13,467			—			—			—			13,467
Reduction in tax uncertainty,
net of valuation allowance	—			—			(501		)	—			—			(501		)
Equity in subsidiaries' net income (loss)	(23,224		)	(44,644		)	—			—			67,868			—
Other	—			—			(67		)	—			—			(67		)
Changes in operating assets and liabilities:
Accounts receivable, net	—			—			(74,649		)	(2,201		)	—			(76,850		)
Inventories	—			—			15,487			(147		)	—			15,340
Prepaid expenses and other assets	—			825			6,780			(680		)	—			6,925
Accounts payable	—			(80		)	9,075			(586		)	—			8,409
Accrued expenses	—			(12,522		)	14,664			(4,918		)	—			(2,776		)
Cash payments on restructuring liabilities	—			—			(201		)	(1,561		)	—			(1,762		)
Other	—			(14		)	(990		)	—			—			(1,004		)
Net cash provided by (used in)
operating activities	—			(7,864		)	56,902			(13,273		)	—			35,765
Cash flows from investing activities:
Acquisitions	—			—			(21,000		)	—			—			(21,000		)
Capital expenditures	—			(1,186		)	(16,836		)	(2,266		)	—			(20,288		)
Proceeds from sale of assets	—			—			88			18			—			106
Net cash used in
investing activities	—			(1,186		)	(37,748		)	(2,248		)	—			(41,182		)
Cash flows from financing activities:
Net revolver borrowings	—			20,000			—			—			—			20,000
Payments on long-term debt	—			(3,225		)	—			—			—			(3,225		)
Proceeds from exercises of employee stock options	—			2,201			—			—			—			2,201
Proceeds from intercompany
investment	—			3,214			(24,567		)	21,353			—			—
Net cash provided by (used in)
financing activities	—			22,190			(24,567		)	21,353			—			18,976
Impact of exchange rate movements on cash	—			—			—			(3,443		)	—			(3,443		)
Net increase (decrease) in cash
and cash equivalents	—			13,140			(5,413		)	2,389			—			10,116
Cash and cash equivalents at the
beginning of the period	—			23,555			(5,845		)	15,452			—			33,162
Cash and cash equivalents at the end
of the period	$	—		$	36,695		$	(11,258	)	$	17,841		$	—		$	43,278

PLY GEM HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the nine months ended September 27, 2014
(Amounts in thousands)	Guarantor			Issuer						Non-
	Ply Gem			Ply Gem			Guarantor			Guarantor			Consolidating
	Holdings, Inc.			Industries, Inc.			Subsidiaries			Subsidiary			Adjustments			Consolidated
Cash flows from operating activities:
Net income (loss)	$	(18,793	)	$	(18,793	)	$	39,973		$	(15,531	)	$	(5,649	)	$	(18,793	)
Adjustments to reconcile net income (loss)
to cash used in operating activities:
Depreciation and amortization expense	—			486			27,239			6,191			—			33,916
Fair-value premium on purchased inventory	—			—			38			—			—			38
Fair-value decrease of contingent acquisition liability	—			—			(264		)	—			—			(264		)
Non-cash restructuring expense	—			—			—			3,012			—			3,012
Non-cash interest expense, net	—			11,606			—			—			—			11,606
Loss on foreign currency transactions	—			—			—			517			—			517
Non-cash litigation expense	—			—			4,593			—			—			4,593
Loss on modification or extinguishment of debt	—			21,364			—			—			—			21,364
Stock based compensation	—			1,672			—			—			—			1,672
Deferred income taxes	—			—			(22,227		)	5,032			—			(17,195		)
Tax receivable agreement liability adjustment	—			14,419			—			—			—			14,419
Increase in tax uncertainty,
net of valuation allowance	—			—			254			—			—			254
Equity in subsidiaries' net loss	18,793			(24,442		)	—			—			5,649			—
Other	—			—			(50		)	(174		)	—			(224		)
Changes in operating assets and liabilities:
Accounts receivable, net	—			—			(81,439		)	(21,289		)	—			(102,728		)
Inventories	—			—			(17,394		)	(6,680		)	—			(24,074		)
Prepaid expenses and other assets	—			189			2,673			(255		)	—			2,607
Accounts payable	—			(60		)	5,873			9,367			—			15,180
Accrued expenses	—			(18,259		)	11,865			4,926			—			(1,468		)
Cash payments on restructuring liabilities	—			—			(577		)	(3,835		)	—			(4,412		)
Other	—			2			(1,997		)	6,566			—			4,571
Net cash used in
operating activities	—			(11,816		)	(31,440		)	(12,153		)	—			(55,409		)
Cash flows from investing activities:
Acquisitions, net of cash acquired	—			(130,856		)	—			—			—			(130,856		)
Capital expenditures	—			(1,075		)	(11,907		)	(1,542		)	—			(14,524		)
Proceeds from sale of assets	—			—			109			635			—			744
Net cash used in
investing activities	—			(131,931		)	(11,798		)	(907		)	—			(144,636		)
Cash flows from financing activities:
Proceeds from long-term debt	—			1,067,725			—			—			—			1,067,725
Net revolver borrowings	—			20,000			—			—			—			20,000
Payments on long-term debt	—			(853,075		)	—			—			—			(853,075		)
Payment of tender and early call premiums	—			(61,142		)	—			—			—			(61,142		)
Proceeds from intercompany
investment	—			(59,762		)	44,781			14,981			—			—
Proceeds from exercises of employee stock options	—			1,073			—			—			—			1,073
Debt issuance costs paid	—			(16,721		)	—			—			—			(16,721		)
Net cash provided by
financing activities	—			98,098			44,781			14,981			—			157,860
Impact of exchange rate movement
on cash	—			—			—			(834		)	—			(834		)
Net increase (decrease) in cash
and cash equivalents	—			(45,649		)	1,543			1,087			—			(43,019		)
Cash and cash equivalents at the
beginning of the period	—			57,800			(4,970		)	16,971			—			69,801
Cash and cash equivalents at the end
of the period	$	—		$	12,151		$	(3,427	)	$	18,058		$	—		$	26,782