Product Warranty Costs

12 Months Ended

Jan. 03, 2015

Product Warranties Disclosures [Abstract]

Product Warranty Disclosure [Text Block]

PRODUCT WARRANTY COSTS

Consistent with industry practice, the Company provides homeowners with limited warranties on certain products, primarily related to its window and siding product categories.

Changes in the warranty reserve are as follows (in thousands):

	January 3, 2015			December 28, 2013			December 29, 2012
Balance at beginning of period	$	93,207		$	97,471		$	101,163
Provision for warranties issued and changes in estimates for pre-existing warranties	4,658			4,040			4,098
Claims paid	(6,816		)	(7,383		)	(8,133		)
Foreign currency translation	(1,109		)	(921		)	343
Balance at end of period	$	89,940		$	93,207		$	97,471

As a result of the Merger and the application of purchase accounting, the Company adjusted its warranty reserves to represent an estimate of the fair value of the liability as of the closing date of the Merger, which was based on an actuarial calculation performed by an independent valuation firm that projected future remedy costs using historical data trends of claims incurred, claims payments and sales history of products to which such costs relate. The excess of the estimated fair value over the expected future remedy costs of $9.5 million, which was included in the Company’s warranty reserve at the date of the Merger, is being amortized as a reduction of warranty expense over the expected term such warranty claims will be satisfied. The remaining unamortized amount at January 3, 2015 was $6.3 million. The provision for warranties was reported within “Cost of sales” in the Consolidated Statements of Comprehensive Loss.

Schedule of Product Warranty Liability [Table Text Block]

Changes in the warranty reserve are as follows (in thousands):

	January 3, 2015			December 28, 2013			December 29, 2012
Balance at beginning of period	$	93,207		$	97,471		$	101,163
Provision for warranties issued and changes in estimates for pre-existing warranties	4,658			4,040			4,098
Claims paid	(6,816		)	(7,383		)	(8,133		)
Foreign currency translation	(1,109		)	(921		)	343
Balance at end of period	$	89,940		$	93,207		$	97,471