10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended July 4, 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: 000-24956

Associated Materials, LLC

(Exact Name of Registrant as Specified in Its Charter)

Delaware	75-1872487
(State or Other Jurisdiction of Incorporation of Organization)	(I.R.S. Employer Identification No.)
3773 State Rd., Cuyahoga Falls, Ohio	44223
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s Telephone Number, Including Area Code (330) 929 -1811

Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report

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, as amended (the “Exchange Act”), 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  ¨    No  ý Although the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act, the registrant has filed all such Exchange Act reports for the preceding 12 months.

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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes  ý    No  ¨

Indicate by check mark whether the 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	¨
Non-accelerated filer	ý  (Do not check if a smaller reporting company)	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  ý

As of August 4, 2015, all of the registrant’s membership interests outstanding were held by an affiliate of the registrant.

ASSOCIATED MATERIALS, LLC

Report for the Quarter ended July 4, 2015

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets July 4, 2015 and January 3, 2015	1
	Condensed Consolidated Statements of Comprehensive Loss Quarters and Six Months ended July 4, 2015 and June 28, 2014	2
	Condensed Consolidated Statements of Cash Flows Six Months ended July 4, 2015 and June 28, 2014	3
	Notes to Condensed Consolidated Financial Statements	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 6.	Exhibits	30
SIGNATURES		31

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ASSOCIATED MATERIALS, LLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	July 4, 2015			January 3, 2015
Assets
Current assets:
Cash and cash equivalents	$	4,029		$	5,963
Accounts receivable, net	163,915			125,121
Inventories	164,578			145,532
Income taxes receivable	135			144
Deferred income taxes	2,439			2,439
Prepaid expenses and other current assets	11,798			15,859
Total current assets	346,894			295,058
Property, plant and equipment, at cost	184,828			178,014
Less accumulated depreciation	90,039			84,114
Property, plant and equipment, net	94,789			93,900
Goodwill	311,194			317,257
Other intangible assets, net	418,554			437,300
Other assets	15,875			18,662
Total assets	$	1,187,306		$	1,162,177
Liabilities and Member’s Deficit
Current liabilities:
Accounts payable	$	140,421		$	94,768
Accrued liabilities	77,027			81,734
Deferred income taxes	2,116			1,292
Income taxes payable	1,779			1,782
Total current liabilities	221,343			179,576
Deferred income taxes	86,858			88,330
Other liabilities	123,849			129,016
Long-term debt	949,456			903,404
Commitments and contingencies
Member’s deficit	(194,200		)	(138,149		)
Total liabilities and member’s deficit	$	1,187,306		$	1,162,177

See accompanying notes to Condensed Consolidated Financial Statements.

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ASSOCIATED MATERIALS, LLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited, in thousands)

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Net sales	$	331,249		$	319,875		$	551,615		$	516,464
Cost of sales	250,234			247,862			428,697			410,036
Gross profit	81,015			72,013			122,918			106,428
Selling, general and administrative expenses	62,166			60,266			120,636			118,931
Income (loss) from operations	18,849			11,747			2,282			(12,503		)
Interest expense	21,156			20,759			41,862			41,079
Foreign currency loss	601			278			1,117			616
Loss before income taxes	(2,908		)	(9,290		)	(40,697		)	(54,198		)
Income tax expense	2,230			1,318			2,763			2,759
Net loss	(5,138		)	(10,608		)	(43,460		)	(56,957		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	151			5			299			8
Foreign currency translation adjustments, net of tax	(1,379		)	10,211			(12,965		)	1,157
Total comprehensive loss	$	(6,366	)	$	(392	)	$	(56,126	)	$	(55,792	)

See accompanying notes to Condensed Consolidated Financial Statements.

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ASSOCIATED MATERIALS, LLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

	Six Months Ended
	July 4, 2015			June 28, 2014
Operating Activities
Net loss	$	(43,460	)	$	(56,957	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	19,927			21,267
Deferred income taxes	905			1,256
Provision for losses on accounts receivable	1,151			946
Amortization of deferred financing costs and premium on senior notes	1,805			1,874
Loss on sale or disposal of assets	3			18
Stock based compensation expense	75			354
Changes in operating assets and liabilities:
Accounts receivable	(41,453		)	(36,287		)
Inventories	(21,253		)	(46,526		)
Accounts payable and accrued liabilities	42,651			30,511
Income taxes receivable / payable	151			1,593
Other assets and liabilities	819			(6,480		)
Net cash used in operating activities	(38,679		)	(88,431		)
Investing Activities
Capital expenditures	(9,901		)	(5,245		)
Proceeds from the sale of assets	8			7
Net cash used in investing activities	(9,893		)	(5,238		)
Financing Activities
Borrowings under ABL facilities	99,731			121,242
Payments under ABL facilities	(53,053		)	(41,128		)
Net cash provided by financing activities	46,678			80,114
Effect of exchange rate changes on cash and cash equivalents	(40		)	(417		)
Net decrease in cash and cash equivalents	(1,934		)	(13,972		)
Cash and cash equivalents at beginning of period	5,963			20,815
Cash and cash equivalents at end of period	$	4,029		$	6,843
Supplemental information:
Cash paid for interest	$	39,772		$	38,636
Cash paid for income taxes	$	1,777		$	171
Property additions of $945 thousand and $1,289 thousand that remained unpaid as of July 4, 2015 and June 28, 2014, respectively, were excluded from “Capital expenditures” in the Investing Activities section above.

See accompanying notes to Condensed Consolidated Financial Statements.

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ASSOCIATED MATERIALS, LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE QUARTER AND SIX MONTHS ENDED JULY 4, 2015

(UNAUDITED)

1. Basis of Presentation

Associated Materials, LLC (the “Company”) is a 100% owned subsidiary of Associated Materials Incorporated, formerly known as AMH Intermediate Holdings Corp. (“Holdings”). Holdings is a wholly owned subsidiary of Associated Materials Group, Inc., formerly known as AMH Investment Holdings Corp. (“Parent”), which is controlled by investment funds affiliated with Hellman & Friedman LLC (“H&F”). Holdings and Parent do not have material assets or operations other than their direct and indirect ownership, respectively, of the membership interests of the Company. Approximately 97% of the capital stock of Parent is owned by investment funds affiliated with H&F.

The condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting, the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these interim condensed consolidated financial statements contain all of the normal recurring accruals and adjustments considered necessary for a fair presentation of the unaudited results for the quarters and six months ended July 4, 2015 and June 28, 2014. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended January 3, 2015, filed with the Securities and Exchange Commission (“SEC”) on March 23, 2015 (“Annual Report”). A detailed description of the Company’s significant accounting policies and management judgments is located in the audited financial statements included in its Annual Report.

The Company is a leading, vertically integrated manufacturer and distributor of exterior residential building products in the United States (“U.S.”) and Canada. The Company was founded in 1947 when it first introduced residential aluminum siding under the Alside^® name. The Company offers a comprehensive range of exterior building products, including vinyl windows, vinyl siding, aluminum trim coil, aluminum and steel siding and related accessories, which are produced at the Company’s 11 manufacturing facilities. The Company also sells complementary products that it sources from a network of manufacturers, such as roofing materials, cladding materials, insulation, exterior doors, equipment and tools. The Company also provides installation services. The Company distributes these products through its extensive dual-distribution network to over 50,000 professional exterior contractors, builders and dealers, whom the Company refers to as its “contractor customers.” This dual-distribution network consists of 124 company-operated supply centers, through which the Company sells directly to its contractor customers, and its direct sales channel, through which the Company sells to more than 275 independent distributors, dealers and national account customers.

Because most of the Company’s building products are intended for exterior use, sales and operating profits tend to be lower during periods of inclement weather. Weather conditions in the first quarter of each calendar year usually result in that quarter producing significantly less net sales and net cash flows from operations than in any other period of the year. Consequently, the Company has historically had losses or small profits in the first quarter and lower profits from operations in the fourth quarter of each calendar year. Therefore, the results of operations for any interim period are not necessarily indicative of the results of operations for a full fiscal year.

Certain items previously reported in specific financial statement captions have been reclassified to conform to the fiscal 2015 presentation.

Recent Accounting Pronouncements

In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value (“NRV”). The new guidance eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin) under the current lower of cost or market guidance. ASU 2015-11 applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. It is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2016. The Company does not believe that the adoption of the provisions of ASU 2015-11 will have a material impact on its consolidated financial position, results of operations or cash flows.

In May 2015, the FASB issued ASU No. 2015-07, Disclosure for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (“ASU 2015-07”). ASU 2015-07 eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The

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new guidance requires an entity to disclose the fair value of investments measured using the net asset value practical expedient so that the financial statement user can reconcile amounts reported in the fair value hierarchy table to amounts reported on the balance sheet. ASU 2015-07 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. The Company does not believe that the adoption of the provisions of ASU 2015-07 will have a material impact on its consolidated financial position, results of operations or cash flows.

In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”). ASU 2015-05 provides guidance on determining whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software. If the arrangement contains a software license, then the customer should account for the fees related to the software license element consistent with the acquisition of other software licenses. If the arrangement does not contain a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. An entity may apply the guidance retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. The Company does not believe that the adoption of the provisions of ASU 2015-05 will have a material impact on its consolidated financial position, results of operations or cash flows.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than an asset, consistent with the presentation of debt discounts. The recognition and measurement of debt issuance costs are not affected by the new guidance. ASU 2015-03 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. An entity is required to apply ASU 2015-03 on a retrospective basis and comply with the applicable disclosures, which include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (that is, the debt issuance cost asset and the debt liability). The Company does not believe that the adoption of the provisions of ASU 2015-03 will have a material impact on its consolidated financial position, results of operations or cash flows.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued and to provide certain disclosures if it concludes that substantial doubt exists. ASU 2014-15 is effective for all entities for the annual period ending after December 15, 2016, and for annual and interim periods thereafter, with early adoption permitted. The Company does not believe that the adoption of the provisions of ASU 2014-15 will have a material impact on its consolidated financial position, results of operations or cash flows.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The comprehensive new revenue recognition standard supersedes all existing revenue guidance under GAAP and international financial reporting standards. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard establishes the following five steps that require companies to exercise judgment when considering the terms of any contract, including all relevant facts and circumstances:

Step 1: Identify the contract(s) with the customer,

Step 2: Identify the separate performance obligations in the contract,

Step 3: Determine the transaction price,

Step 4: Allocate the transaction price to the separate performance obligations, and

Step 5: Recognize revenue when each performance obligation is satisfied.

The new standard also requires significantly more interim and annual disclosures. The new standard allows for either full retrospective or modified retrospective adoption. ASU 2014-09 is effective for fiscal years and interim periods within those years, beginning after December 15, 2016. In July 2015, the FASB confirmed its decision to defer the effective date of the new revenue standard by one year. The Company is currently assessing the potential impact of the new requirements under the standard.

2. Allowance for Doubtful Accounts

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make payments. The allowance for doubtful accounts is based on review of the overall condition of accounts receivable balances and review of significant past due accounts. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Account balances are charged off against the allowance for doubtful accounts after all means of collection have been exhausted and the

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potential for recovery is considered remote. Accounts receivable that are not expected to be collected within one year, net of the related allowance for doubtful accounts, are included in “Other assets” in the Condensed Consolidated Balance Sheets.

Allowance for doubtful accounts on accounts receivable consists of the following (in thousands):

	July 4, 2015		January 3, 2015
Allowance for doubtful accounts, current	$	3,564	$	3,542
Allowance for doubtful accounts, non-current	4,682		4,549
	$	8,246	$	8,091

3. Inventories

Inventories are valued at the lower of cost (first in, first out) or market. Inventories consist of the following (in thousands):

	July 4, 2015		January 3, 2015
Raw materials	$	36,895	$	29,300
Work-in-progress	13,317		16,442
Finished goods	114,366		99,790
	$	164,578	$	145,532

4. Goodwill and Other Intangible Assets

The Company reviews goodwill for impairment on an annual basis at the beginning of the fourth quarter, or an interim basis if there are indicators of potential impairment. The Company did not recognize any impairment losses of its goodwill during the quarters and six months ended July 4, 2015 and June 28, 2014.

The changes in the carrying amount of goodwill are as follows (in thousands):

	Goodwill
Balance at January 3, 2015	$	317,257
Foreign currency translation	(6,063		)
Balance at July 4, 2015	$	311,194

At each of the periods ended July 4, 2015 and January 3, 2015, accumulated goodwill impairment losses were $228.5 million, exclusive of foreign currency translation.

The Company’s other intangible assets consist of the following (in thousands):

	July 4, 2015						January 3, 2015
	Cost		Accumulated Amortization		Net Carrying Value		Cost		Accumulated Amortization		Net Carrying Value
Amortized customer bases	$	318,449	$	117,890	$	200,559	$	321,836	$	106,655	$	215,181
Amortized non-compete agreements	20		18		2		20		16		4
Total amortized intangible assets	318,469		117,908		200,561		321,856		106,671		215,185
Non-amortized trade names (1)	217,993		—		217,993		222,115		—		222,115
Total intangible assets	$	536,462	$	117,908	$	418,554	$	543,971	$	106,671	$	437,300

(1) Balances at July 4, 2015 and January 3, 2015 include impairment charges of $169.6 million, of which $89.7 million were recorded in the second half of 2014 and $79.9 million recorded were recorded in 2011.

The Company’s non-amortized intangible assets consist of the Alside^®, Revere^®, Gentek^®, Preservation^® and Alpine^® trade names and are subject to testing for impairment on an annual basis at the beginning of the fourth quarter, or an interim basis if indicators of potential impairment are present. The Company did not recognize any impairment losses related to its other intangible assets during the quarters and six months ended July 4, 2015 and June 28, 2014.

Finite-lived intangible assets, which consist of customer bases and non-compete agreements, are amortized on a straight-line basis over their estimated useful lives. The estimated average amortization period for customer bases and non-compete agreements is 13 years and 3 years, respectively. Amortization expense related to other intangible assets was $6.2 million and

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$12.5 million for the quarter and six months ended July 4, 2015, respectively, and $4.3 million and $10.7 million for the quarter and six months ended June 28, 2014, respectively.

5. Manufacturing Restructuring Costs

The Company discontinued its use of the warehouse facility adjacent to the Ennis manufacturing plant during the second quarter of 2009 and recorded a restructuring liability related to the discontinued use of the warehouse facility. During the quarter ended March 29, 2014, the Company re-measured its restructuring liability due to changes in the expected amount and timing of cash flows related to taxes and insurance over the remaining lease term. As a result, the Company decreased the restructuring liability and recognized a benefit of $0.3 million within selling, general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Loss.

Changes in the manufacturing restructuring liability are as follows (in thousands):  

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Balance at the beginning of the period	$	1,710		$	2,166		$	1,960		$	2,772
Decrease	—			—			—			(331		)
Accretion of related lease obligations	38			128			152			252
Payments	(121		)	(185		)	(485		)	(584		)
Balance at the end of the period	$	1,627		$	2,109		$	1,627		$	2,109

The remaining restructuring liability is included in “Accrued liabilities” and “Other liabilities” in the Condensed Consolidated Balance Sheets and will continue to be paid over the lease term, which ends in April 2020.

6. Product Warranty Costs

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

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

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Balance at the beginning of the period	$	89,246		$	92,638		$	89,940		$	93,207
Provision for warranties issued and changes in estimates for pre-existing warranties	1,457			1,547			2,707			2,826
Claims paid	(1,735		)	(1,728		)	(3,063		)	(3,188		)
Foreign currency translation	(67		)	434			(683		)	46
Balance at the end of the period	$	88,901		$	92,891		$	88,901		$	92,891

On February 13, 2013, the Company entered into a Settlement Agreement and Release of Claims (the “Settlement”) for a class action lawsuit filed by plaintiffs and a putative nationwide class of homeowners regarding certain warranty-related claims for steel and aluminum siding, which became effective on September 2, 2013. The Company expects to incur additional warranty costs associated with the Settlement; however, the Company does not believe the incremental costs, which currently cannot be estimated for recognition purposes, have been or will be material.

7. Executive Officers’ Separation and Hiring Costs

Separation and hiring costs related to the Company’s executive officers include payroll taxes, certain benefits and related professional fees, all of which are recorded as a component of selling, general and administrative expenses. For the quarter and six months ended July 4, 2015, the Company recorded $0.1 million of separation and hiring costs. For the quarter and six months ended June 28, 2014, the Company recorded $0.8 million and $2.8 million, respectively, of separation and hiring costs, primarily related to the resignations of Jerry W. Burris, the former President and Chief Executive Officer and David S. Nagle, the former Chief Operations Officer, AMI Distribution and Services, as well as the hiring of Dana R. Snyder as Interim Chief Executive Officer and the appointment of Brian C. Strauss as President and Chief Executive Officer in May 2014. As of July 4, 2015, the remaining balance payable to the Company’s former executives for separation costs was $0.4 million, which will be paid at various dates through 2016.

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8. Long-Term Debt

Long-term debt consists of the following (in thousands):

	July 4, 2015		January 3, 2015
9.125% Senior Secured Notes due 2017	$	833,356	$	834,004
Borrowings under the ABL facilities	116,100		69,400
Total long-term debt	$	949,456	$	903,404

9.125% Senior Secured Notes due 2017

In October 2010, the Company and its wholly owned subsidiary, AMH New Finance, Inc. (collectively, the “Issuers”) issued and sold $730.0 million of 9.125% Senior Secured Notes due November 1, 2017 (the “existing notes”). The existing notes bear interest at a rate of 9.125% per annum, payable on May 1 and November 1 of each year, and are unconditionally guaranteed, jointly and severally, by each of the Issuers’ direct and indirect domestic subsidiaries that guarantees the Company’s obligations under its senior secured asset-based revolving credit facilities (the “ABL facilities”).

On May 1, 2013, the Issuers issued and sold an additional $100.0 million in aggregate principal amount of 9.125% Senior Secured Notes due November 1, 2017 (the “new notes” and, together with existing notes, the “9.125% notes”) at an issue price of 106.00% of the principal amount of the new notes in a private placement. The Company used the net proceeds of the offering to repay the outstanding borrowings under its ABL facilities and for other general corporate purposes. The new notes were issued as additional notes under the same indenture, dated as of October 13, 2010, governing the existing notes, as supplemented by a supplemental indenture (collectively, the “Indenture”). On October 31, 2013, all of the new notes were exchanged for 9.125% Senior Secured Notes due 2017, which have been registered under the Securities Act of 1933, as amended. The new notes are consolidated with and form a single class with the existing notes and have the same terms as to status, redemption, collateral and otherwise (other than issue date, issue price and first interest payment date) as the existing notes. The debt premium related to the issuance of the new notes is being amortized into interest expense over the life of the new notes. The unamortized premium of $3.4 million is included in the long-term debt balance for the 9.125% notes. The effective interest rate of the new notes, including the premium, is 7.5% as of July 4, 2015.

The 9.125% notes, at par value of $830.0 million, have an estimated fair value, classified as a Level 1 measurement, of $693.1 million and $652.8 million based on quoted market prices as of July 4, 2015 and January 3, 2015, respectively.

The Company may from time to time, in its sole discretion, purchase, redeem or retire the 9.125% notes in privately negotiated or open market transactions, by tender offer or otherwise.

ABL Facilities

In October 2010, the Company entered into the ABL facilities in the amount of$225.0 million (comprised of a $150.0 million U.S. facility and a $75.0 million Canadian facility) pursuant to a revolving credit agreement dated October 13, 2010, which was subsequently amended and restated on April 18, 2013 (the “Amended and Restated Revolving Credit Agreement”) to, among other things, extend the maturity date of the revolving credit agreement from October 13, 2015 to the earlier of (i) April 18, 2018 and (ii) 90 days prior to the maturity date of the existing notes. Subsequently, the Company terminated the tranche B revolving credit commitments of $12.0 million and wrote off $0.5 million of deferred financing fees related to the ABL facilities.

At the Company’s option, the U.S. and Canadian tranche A revolving credit loans under the Amended and Restated Revolving Credit Agreement governing the ABL facilities bear interest at the rate equal to (1) the London Interbank Offered Rate (“LIBOR”) (for eurodollar loans under the U.S. facility) or the Canadian Dealer Offered Rate (“CDOR”) (for loans under the Canadian facility), plus an applicable margin of 2.25% as of July 4, 2015, or (2) the alternate base rate (for alternate base rate loans under the U.S. facility, which is the highest of a prime rate, the Federal Funds Effective Rate plus 0.50% and a one-month LIBOR rate plus 1.0% per annum) or the alternate Canadian base rate (for loans under the Canadian facility, which is the higher of a Canadian prime rate and the 30-day CDOR plus 1.0%), plus an applicable margin of 1.25% as of July 4, 2015, in each case, which interest rate margin may vary in 25 basis point increments between three pricing levels determined by reference to the average excess availability in respect of the U.S. and Canadian tranche A revolving credit loans. In addition to paying interest on outstanding principal under the ABL facilities, the Company is required to pay a commitment fee in respect of the U.S. and Canadian tranche A revolving credit loans, payable quarterly in arrears, of 0.375%.

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The Amended and Restated Revolving Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants, including, with respect to negative covenants, among other things, restrictions on indebtedness, liens, investments, fundamental changes, asset sales, dividends and other distributions, prepayments or redemption of junior debt, transactions with affiliates and negative pledge clauses. There are no financial covenants included in the Amended and Restated Revolving Credit Agreement, other than a springing fixed charge coverage ratio of at least 1.00 to 1.00, which will be tested only when excess availability is less than the greater of (i) 10.0% of the sum of (x) the lesser of (A) the U.S. tranche A borrowing base and (B) the U.S. tranche A revolving credit commitments and (y) the lesser of (A) the Canadian tranche A borrowing base and (B) the Canadian tranche A revolving credit commitments and (ii) $20.0 million for a period of five consecutive business days until the 30th consecutive day when excess availability exceeds the above threshold.

On March 23, 2015, the Amended and Restated Revolving Credit Agreement was amended to permit, among other things, for the period commencing on and including April 3, 2015 through and including June 5, 2015, for the fixed charge coverage ratio to be tested or for a cash dominion period to commence only if excess availability is less than $15.0 million for a period of five consecutive business days. In addition, such amendment includes a provision for weekly borrowing base certificate reporting for the period commencing on and including April 12, 2015 through and including June 10, 2015 in lieu of delivery of a borrowing base certificate after each fiscal month.

The fixed charge coverage ratio was 0.50:1.00 for the four consecutive fiscal quarter test period ended July 4, 2015. The Company has not triggered such fixed charge coverage ratio covenant as of July 4, 2015, as excess availability of $44.3 million, as of such date was in excess of the covenant trigger threshold. The Company currently does not expect to trigger the fixed charge coverage ratio test for fiscal year 2015.

As of July 4, 2015, there was $116.1 million drawn under the Company’s ABL facilities and $64.3 million available for additional borrowings. The weighted average per annum interest rate applicable to borrowings under the U.S. portion and the Canadian portion of the ABL facilities was 2.6% and 4.5%, as of July 4, 2015. The Company had letters of credit outstanding of $12.4 million as of July 4, 2015 primarily securing insurance policy deductibles, certain lease facilities and the Company’s purchasing card program.

9. Income Taxes

The Company’s provision for income taxes in interim periods is computed by applying the appropriate estimated annual effective tax rates to income or loss before income taxes for the period. The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate and records the tax impact of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur.

The components of the effective tax rate are as follows (in thousands, except percentage):

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Loss before income taxes	$	(2,908	)	$	(9,290	)	$	(40,697	)	$	(54,198	)
Income tax expense	2,230			1,318			2,763			2,759
Effective tax rate	(76.7		)%	(14.2		)%	(6.8		)%	(5.1		)%

The effective tax rates for the quarters and six months ended July 4, 2015 and June 28, 2014 vary from the statutory rate, primarily as a result of operating losses in the U.S. with no tax benefit recognized due to the valuation allowance against net U.S. deferred tax assets, and income tax expense on foreign income.

9

10. Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component, net of tax, for the six months ended July 4, 2015 and June 28, 2014, respectively, are as follows (in thousands):

	Defined Benefit Pension and Other Postretirement Plans			Foreign Currency Translation			Accumulated Other Comprehensive Loss
Balance at January 3, 2015	$	(23,781	)	$	(36,842	)	$	(60,623	)
Other comprehensive loss before reclassifications, net of tax of $0	—			(12,965		)	(12,965		)
Amounts reclassified from accumulated other comprehensive loss, net of tax of $31	299			—			299
Balance at July 4, 2015	$	(23,482	)	$	(49,807	)	$	(73,289	)

	Defined Benefit Pension and Other Postretirement Plans			Foreign Currency Translation			Accumulated Other Comprehensive Loss
Balance at December 28, 2013	$	(3,513	)	$	(14,403	)	$	(17,916	)
Other comprehensive income before reclassifications, net of tax of $0	—			1,157			1,157
Amounts reclassified from accumulated other comprehensive loss, net of tax of $10	8			—			8
Balance at June 28, 2014	$	(3,505	)	$	(13,246	)	$	(16,751	)

Reclassifications out of accumulated other comprehensive loss for the quarters and six months ended July 4, 2015 and June 28, 2014, respectively, consist of the following (in thousands):

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Defined Benefit Pension and Other Postretirement Plans:
Amortization of unrecognized prior service costs	$	6		$	6		$	13		$	12
Amortization of unrecognized cumulative actuarial net loss	159			3			317			6
Total before tax	165			9			330			18
Tax expense	(14		)	(4		)	(31		)	(10		)
Net of tax	$	151		$	5		$	299		$	8

Amortization of prior service costs and actuarial losses are included in the computation of net periodic benefit cost for the Company’s pension and other postretirement benefit plans.

11. Stock Plans

In April 2015, the board of directors of Associated Materials Group, Inc. (“Parent”) and Parent’s stockholders approved an amendment and restatement to the Parent’s 2010 Stock Incentive Plan (“2010 Plan”) to increase the maximum number of shares which may be issued under the 2010 Plan by 1,500,000 from 7,550,076 to 9,050,076 shares of Parent common stock.

In June 2015, Parent’s board of directors modified certain time-based and performance-based options held by eligible participants to reduce the exercise price of such options. The number of options repriced was 4.5 million to 17 employees under the senior leadership team, with a weighted average exercise price prior to repricing of $9.23 and an average remaining contractual life of 8.8 years. The compensation cost related to this repricing resulted in additional unrecognized non-cash expense of $0.3 million that may be recognized over the remaining life of the options, subject to vesting conditions.

12. Retirement Plans

The Company sponsors defined benefit pension plans that cover hourly workers at its West Salem, Ohio plant, and hourly union employees at its Woodbridge, New Jersey plant, as well as a defined benefit retirement plan covering U.S. salaried employees, which was frozen in 1998 and subsequently replaced with a defined contribution plan (such plans collectively, the “Domestic Plans”). The Company also sponsors a defined benefit pension plan covering the Canadian salaried employees and hourly union employees at the Lambeth, Ontario plant, a defined benefit pension plan for the hourly union employees at its

10

Burlington, Ontario plant and a defined benefit pension plan for the hourly union employees at its Pointe Claire, Quebec plant (such plans collectively, the “Foreign Plans”). In 2014, the pension plans for Pointe Claire and Burlington were amended to reflect an increase in benefits, effective November 15, 2015 and September 1, 2016, respectively. Also, the Pointe Claire plan was amended to disallow a lump sum payment feature that triggered settlement losses recorded in previous years.

The Company also provides postretirement benefits other than pension (“OPEB Plans”) including health care or life insurance benefits to certain U.S. and Canadian retirees and in some cases, their spouses and dependents. The Company’s postretirement benefit plans in the U.S. include an unfunded health care plan for hourly workers at the Company’s former steel siding plant in Cuyahoga Falls, Ohio. With the closure of this facility in 1991, no additional employees are eligible to participate in this plan. There are three other U.S. unfunded plans covering either life insurance or health care benefits for small frozen groups of retirees. The Company’s foreign postretirement benefit plan provides life insurance benefits to active members at its Pointe Claire, Quebec plant and a closed group of Canadian salaried retirees. The actuarial valuation measurement date for the defined benefit pension plans and postretirement benefits other than pension is December 31.

Components of net periodic benefit cost for the Company’s Domestic Plans, Foreign Plans and OPEB Plans are as follows (in thousands):

	Quarters Ended
	July 4, 2015									June 28, 2014
	Domestic Plans			Foreign Plans			OPEB Plans			Domestic Plans			Foreign Plans			OPEB Plans
Service cost	$	331		$	649		$	2		$	323		$	606		$	3
Interest cost	806			802			44			788			924			49
Expected return on assets	(973		)	(952		)	—			(1,018		)	(1,095		)	—
Amortization of unrecognized:
Prior service costs (credits)	3			5			(2		)	3			5			(2		)
Cumulative actuarial net loss (gains)	104			60			(5		)	—			14			(11		)
Net periodic benefit cost	$	271		$	564		$	39		$	96		$	454		$	39

	Six Months Ended
	July 4, 2015									June 28, 2014
	Domestic Plans			Foreign Plans			OPEB Plans			Domestic Plans			Foreign Plans			OPEB Plans
Service cost	$	662		$	1,290		$	6		$	645		$	1,197		$	6
Interest cost	1,612			1,593			87			1,576			1,827			98
Expected return on assets	(1,946		)	(1,890		)	—			(2,036		)	(2,164		)	—
Amortization of unrecognized:
Prior service costs (credits)	6			11			(4		)	6			10			(4		)
Cumulative actuarial net loss (gains)	208			119			(10		)	—			28			(22		)
Net periodic benefit cost	$	542		$	1,123		$	79		$	191		$	898		$	78

Although changes in market conditions, current pension law and uncertainties regarding significant assumptions used in the actuarial valuations may have a material impact on future required contributions to the Company’s pension plans, the Company currently does not expect funding requirements to have a material adverse impact on current or future liquidity.

The actuarial valuations require significant estimates and assumptions to be made by management, primarily the funding interest rate, discount rate and expected long-term return on plan assets. These assumptions are all susceptible to changes in market conditions. The funding interest rate and discount rate are based on representative bond yield curves maintained and monitored by independent third parties. In determining the expected long-term rate of return on plan assets, the Company considers historical market and portfolio rates of return, asset allocations and expectations of future rates of return.

13. Commitments and Contingencies

The Company is involved from time to time in litigation arising in the ordinary course of business, none of which, individually or in the aggregate, after giving effect to its existing insurance coverage, is expected to have a material adverse effect on its financial position, results of operations or liquidity. From time to time, the Company is also involved in proceedings and potential proceedings relating to environmental and product liability matters.

11

Environmental Claims

The Woodbridge, New Jersey facility is currently the subject of an investigation and/or remediation before the New Jersey Department of Environmental Protection (“NJDEP”) under ISRA Case No. E20030110 for the Company’s wholly owned subsidiary Gentek Building Products, Inc. (“Gentek”). The facility is currently leased by Gentek. Previous operations at the facility resulted in soil and groundwater contamination in certain areas of the property. In 1999, the property owner and Gentek signed a remediation agreement with NJDEP, pursuant to which the property owner and Gentek agreed to continue an investigation/remediation that had been commenced pursuant to a Memorandum of Agreement with NJDEP. Under the remediation agreement, NJDEP required posting of a remediation funding source of $0.1 million, which is currently satisfied by a $0.3 million standby letter of credit that was provided by Gentek to the NJDEP. During 2014, the delineation studies were completed and in early 2015 the Company was presented with several remedial plans. Based on the alternatives presented, the Company identified what it believed to be the most likely option and recorded the minimum liability for that option, which totaled $1.0 million as of January 3, 2015, the balance of which remains unchanged as of July 4, 2015. The Company believes this matter will not have a material adverse effect on the Company’s financial position, results of operations or liquidity.

Environmental claims, product liability claims and other claims are administered by the Company in the ordinary course of business, and the Company maintains pollution and remediation and product liability insurance covering certain types of claims. Although it is difficult to estimate the Company’s potential exposure to these matters, the Company believes that the resolution of these matters will not have a material adverse effect on its financial position, results of operations or liquidity.

14. Business Segments

The Company is in the business of manufacturing and distributing exterior residential building products. The Company has a single operating segment and a single reportable segment. The Company’s chief operating decision maker is considered to be the Chief Executive Officer. The chief operating decision maker allocates resources and assesses performance of the business and other activities at the single operating segment level.

The following table sets forth a summary of net sales by principal product offering (in thousands):

	Quarters Ended				Six Months Ended
	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Vinyl windows	$	117,387	$	106,390	$	199,641	$	176,030
Vinyl siding products	58,353		59,628		93,518		93,722
Metal products	41,837		40,500		70,244		67,807
Third-party manufactured products	80,971		84,283		128,470		127,195
Other products and services	32,701		29,074		59,742		51,710
	$	331,249	$	319,875	$	551,615	$	516,464

15. Subsidiary Guarantors

The Company’s payment obligations under its 9.125% notes are fully and unconditionally guaranteed, jointly and severally, on a senior basis, by its domestic 100% owned subsidiaries, Gentek Holdings, LLC and Gentek Building Products, Inc. (together, the “Subsidiary Guarantors”). AMH New Finance, Inc. is a co-issuer of the 9.125% notes and is a domestic 100% owned subsidiary of the Company having no operations, revenues or cash flows for the periods presented.

Associated Materials Canada Limited, Gentek Canada Holdings Limited and Gentek Buildings Products Limited Partnership are Canadian companies and do not guarantee the 9.125% notes. In the opinion of management, separate financial statements of the respective Subsidiary Guarantors would not provide additional material information that would be useful in assessing the financial composition of the Subsidiary Guarantors.

12

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	3,194		$	—	$	—		$	835		$	—		$	4,029
Accounts receivable, net	123,256			—		9,151			31,508			—			163,915
Intercompany receivables	331,936			—		53,839			1,794			(387,569		)	—
Inventories	113,536			—		9,316			41,726			—			164,578
Income taxes receivable	68			—		67			—			—			135
Deferred income taxes	487			—		1,952			—			—			2,439
Prepaid expenses and other current assets	9,562			—		779			1,457			—			11,798
Total current assets	582,039			—		75,104			77,320			(387,569		)	346,894
Property, plant and equipment, net	66,136			—		1,353			27,300			—			94,789
Goodwill	203,841			—		16,713			90,640			—			311,194
Other intangible assets, net	295,121			—		32,858			90,575			—			418,554
Intercompany receivable	—			833,356		—			—			(833,356		)	—
Other assets	14,521			—		17			1,337			—			15,875
Total assets	$	1,161,658		$	833,356	$	126,045		$	287,172		$	(1,220,925	)	$	1,187,306
LIABILITIES AND MEMBER'S DEFICIT
Current liabilities:
Accounts payable	$	103,086		$	—	$	3,198		$	34,137		$	—		$	140,421
Intercompany payables	1,794			—		—			385,775			(387,569		)	—
Accrued liabilities	64,724			—		4,464			7,839			—			77,027
Deferred income taxes	905			—		—			1,211			—			2,116
Income taxes payable	—			—		—			1,779			—			1,779
Total current liabilities	170,509			—		7,662			430,741			(387,569		)	221,343
Deferred income taxes	51,012			—		13,295			22,551			—			86,858
Other liabilities	81,176			—		22,428			20,245			—			123,849
Deficit in subsidiaries	140,305			—		222,965			—			(363,270		)	—
Long-term debt	912,856			833,356		—			36,600			(833,356		)	949,456
Member’s deficit	(194,200		)	—		(140,305		)	(222,965		)	363,270			(194,200		)
Total liabilities and member’s deficit	$	1,161,658		$	833,356	$	126,045		$	287,172		$	(1,220,925	)	$	1,187,306

13

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For The Quarter Ended July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	262,272		$	—	$	42,578		$	77,477		$	(51,078	)	$	331,249
Cost of sales	201,659			—		41,001			58,652			(51,078		)	250,234
Gross profit	60,613			—		1,577			18,825			—			81,015
Selling, general and administrative expenses	49,194			—		2,526			10,446			—			62,166
Income (loss) from operations	11,419			—		(949		)	8,379			—			18,849
Interest expense, net	19,276			—		1,662			218			—			21,156
Foreign currency loss	—			—		—			601			—			601
(Loss) income before income taxes	(7,857		)	—		(2,611		)	7,560			—			(2,908		)
Income tax expense	179			—		53			1,998			—			2,230
(Loss) income before equity income from subsidiaries	(8,036		)	—		(2,664		)	5,562			—			(5,138		)
Equity income from subsidiaries	2,898			—		5,562			—			(8,460		)	—
Net (loss) income	(5,138		)	—		2,898			5,562			(8,460		)	(5,138		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	151			—		60			50			(110		)	151
Foreign currency translation adjustments, net of tax	(1,379		)	—		(1,379		)	(1,379		)	2,758			(1,379		)
Total comprehensive (loss) income	$	(6,366	)	$	—	$	1,579		$	4,233		$	(5,812	)	$	(6,366	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Six Months Ended July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	441,910		$	—	$	72,740		$	124,725		$	(87,760	)	$	551,615
Cost of sales	350,626			—		69,807			96,024			(87,760		)	428,697
Gross profit	91,284			—		2,933			28,701			—			122,918
Selling, general and administrative expenses	96,851			—		3,370			20,415			—			120,636
(Loss) income from operations	(5,567		)	—		(437		)	8,286			—			2,282
Interest expense, net	38,064			—		3,323			475			—			41,862
Foreign currency loss	—			—		—			1,117			—			1,117
(Loss) income before income taxes	(43,631		)	—		(3,760		)	6,694			—			(40,697		)
Income tax expense	905			—		77			1,781			—			2,763
(Loss) income before equity income from subsidiaries	(44,536		)	—		(3,837		)	4,913			—			(43,460		)
Equity income from subsidiaries	1,076			—		4,913			—			(5,989		)	—
Net (loss) income	(43,460		)	—		1,076			4,913			(5,989		)	(43,460		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	299			—		118			98			(216		)	299
Foreign currency translation adjustments, net of tax	(12,965		)	—		(12,965		)	(12,965		)	25,930			(12,965		)
Total comprehensive loss	$	(56,126	)	$	—	$	(11,771	)	$	(7,954	)	$	19,725		$	(56,126	)

14

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(33,721	)	$	—	$	6,787		$	(11,745	)	$	—		$	(38,679	)
INVESTING ACTIVITIES
Capital expenditures	(8,731		)	—		(81		)	(1,089		)	—			(9,901		)
Proceeds from the sale of assets	7			—		—			1			—			8
Payments on loans to affiliates	—			—		(6,706		)	(25,000		)	31,706			—
Receipts on loans to affiliates	2,000			—		—			7,500			(9,500		)	—
Net cash used in investing activities	(6,724		)	—		(6,787		)	(18,588		)	22,206			(9,893		)
FINANCING ACTIVITIES
Borrowings under ABL facilities	48,200			—		—			51,531			—			99,731
Payments under ABL facilities	(34,700		)	—		—			(18,353		)	—			(53,053		)
Borrowings from affiliates	31,706			—		—			—			(31,706		)	—
Repayments to affiliates	(7,500		)	—		—			(2,000		)	9,500			—
Net cash provided by financing activities	37,706			—		—			31,178			(22,206		)	46,678
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(40		)	—			(40		)
Net (decrease) increase in cash and cash equivalents	(2,739		)	—		—			805			—			(1,934		)
Cash and cash equivalents at beginning of period	5,933			—		—			30			—			5,963
Cash and cash equivalents at end of period	$	3,194		$	—	$	—		$	835		$	—		$	4,029

15

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

January 3, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	5,933		$	—	$	—		$	30		$	—		$	5,963
Accounts receivable, net	98,945			—		6,411			19,765			—			125,121
Intercompany receivables	356,421			—		61,740			1,794			(419,955		)	—
Inventories	100,487			—		10,969			34,076			—			145,532
Income taxes receivable	—			—		144			—			—			144
Deferred income taxes	487			—		1,952			—			—			2,439
Prepaid expenses and other current assets	13,422			—		996			1,441			—			15,859
Total current assets	575,695			—		82,212			57,106			(419,955		)	295,058
Property, plant and equipment, net	62,977			—		1,474			29,449			—			93,900
Goodwill	203,841			—		16,713			96,703			—			317,257
Other intangible assets, net	305,127			—		33,084			99,089			—			437,300
Intercompany receivable	—			834,004		—			—			(834,004		)	—
Other assets	17,246			—		45			1,371			—			18,662
Total assets	$	1,164,886		$	834,004	$	133,528		$	283,718		$	(1,253,959	)	$	1,162,177
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	67,160		$	—	$	6,679		$	20,929		$	—		$	94,768
Intercompany payables	1,794			—		—			418,161			(419,955		)	—
Accrued liabilities	70,439			—		4,683			6,612			—			81,734
Deferred income taxes	—			—		—			1,292			—			1,292
Income taxes payable	46			—		—			1,736			—			1,782
Total current liabilities	139,439			—		11,362			448,730			(419,955		)	179,576
Deferred income taxes	51,012			—		13,295			24,023			—			88,330
Other liabilities	84,048			—		22,395			22,573			—			129,016
Deficit in subsidiaries	128,532			—		215,008			—			(343,540		)	—
Long-term debt	900,004			834,004		—			3,400			(834,004		)	903,404
Member’s deficit	(138,149		)	—		(128,532		)	(215,008		)	343,540			(138,149		)
Total liabilities and member’s deficit	$	1,164,886		$	834,004	$	133,528		$	283,718		$	(1,253,959	)	$	1,162,177

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ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For The Quarter Ended June 28, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries		Reclassification/ Eliminations			Consolidated
Net sales	$	251,215		$	—	$	45,778		$	79,125	$	(56,243	)	$	319,875
Cost of sales	201,020			—		42,595			60,490		(56,243		)	247,862
Gross profit	50,195			—		3,183			18,635		—			72,013
Selling, general and administrative expenses	48,100			—		1,104			11,062		—			60,266
Income from operations	2,095			—		2,079			7,573		—			11,747
Interest expense, net	20,292			—		—			467		—			20,759
Foreign currency loss	—			—		—			278		—			278
(Loss) income before income taxes	(18,197		)	—		2,079			6,828		—			(9,290		)
Income tax (benefit) expense	(378		)	—		(36		)	1,732		—			1,318
(Loss) income before equity income from subsidiaries	(17,819		)	—		2,115			5,096		—			(10,608		)
Equity income from subsidiaries	7,211			—		5,096			—		(12,307		)	—
Net (loss) income	(10,608		)	—		7,211			5,096		(12,307		)	(10,608		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	5			—		13			14		(27		)	5
Foreign currency translation adjustments, net of tax	10,211			—		10,211			10,211		(20,422		)	10,211
Total comprehensive (loss) income	$	(392	)	$	—	$	17,435		$	15,321	$	(32,756	)	$	(392	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For The Six Months Ended June 28, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries		Reclassification/ Eliminations			Consolidated
Net sales	$	408,154		$	—	$	76,440		$	123,819	$	(91,949	)	$	516,464
Cost of sales	335,338			—		71,545			95,102		(91,949		)	410,036
Gross profit	72,816			—		4,895			28,717		—			106,428
Selling, general and administrative expenses	95,899			—		2,046			20,986		—			118,931
(Loss) income from operations	(23,083		)	—		2,849			7,731		—			(12,503		)
Interest expense, net	40,264			—		1			814		—			41,079
Foreign currency loss	—			—		—			616		—			616
(Loss) income before income taxes	(63,347		)	—		2,848			6,301		—			(54,198		)
Income tax expense (benefit)	1,256			—		(63		)	1,566		—			2,759
(Loss) income before equity income from subsidiaries	(64,603		)	—		2,911			4,735		—			(56,957		)
Equity income from subsidiaries	7,646			—		4,735			—		(12,381		)	—
Net (loss) income	(56,957		)	—		7,646			4,735		(12,381		)	(56,957		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	8			—		25			28		(53		)	8
Foreign currency translation adjustments, net of tax	1,157			—		1,157			1,157		(2,314		)	1,157
Total comprehensive (loss) income	$	(55,792	)	$	—	$	8,828		$	5,920	$	(14,748	)	$	(55,792	)

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ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Six Months EndedJune 28, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(76,034	)	$	—	$	5,938		$	(18,335	)	$	—		$	(88,431	)
INVESTING ACTIVITIES
Capital expenditures	(4,528		)	—		(249		)	(468		)	—			(5,245		)
Proceeds from the sale of assets	5			—		—			2			—			7
Payments on loans to affiliates	—			—		(5,689		)	—			5,689			—
Net cash used in investing activities	(4,523		)	—		(5,938		)	(466		)	5,689			(5,238		)
FINANCING ACTIVITIES
Borrowings under ABL facilities	94,700			—		—			26,542			—			121,242
Payments under ABL facilities	(20,700		)	—		—			(20,428		)	—			(41,128		)
Borrowings from affiliates	5,689			—		—			—			(5,689		)	—
Net cash provided by financing activities	79,689			—		—			6,114			(5,689		)	80,114
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(417		)	—			(417		)
Net decrease in cash and cash equivalents	(868		)	—		—			(13,104		)	—			(13,972		)
Cash and cash equivalents at beginning of period	7,566			—		—			13,249			—			20,815
Cash and cash equivalents at end of period	$	6,698		$	—	$	—		$	145		$	—		$	6,843

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited consolidated financial statements and related notes thereto included elsewhere in this quarterly report on Form 10-Q. This discussion may contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under Part I, Item 1A. “Risk Factors” in our Annual Report and under Part II, Item 1A. “Risk Factors” or elsewhere in this report.

Overview

Associated Materials, LLC (“we,” “us,” “our” or “our Company”) is a leading, vertically integrated manufacturer and distributor of exterior residential building products in the United States and Canada. We were founded in 1947 when we first introduced residential aluminum siding under the Alside^® name. We offer a comprehensive range of exterior building products, including vinyl windows, vinyl siding, aluminum trim coil, aluminum and steel siding and related accessories, which we produce at our 11 manufacturing facilities. We also sell complementary products that we source from a network of manufacturers, such as roofing materials, cladding materials, insulation, exterior doors and equipment and tools. We also provide installation services. We distribute these products through our extensive dual-distribution network to over 50,000 professional exterior contractors, builders and dealers, whom we refer to as our “contractor customers.” This dual distribution network consists of 124 company-operated supply centers, through which we sell directly to our contractor customers, and our direct sales channel. Through our direct sales channel we sell to more than 275 independent distributors, dealers and national account customers. The products we sell are primarily marketed under our brand names, including Alside^®, Revere^®, Gentek^®, Preservation^® and Alpine^®.

Because most of our building products are intended for exterior use, our sales and operating profits tend to be lower during periods of inclement weather. Weather conditions in the first quarter of each calendar year usually result in that quarter producing significantly less net sales and net cash flows from operations than in any other period of the year. Consequently, we have historically had losses or small profits in the first quarter and lower profits from operations in the fourth quarter of each calendar year. To meet seasonal cash flow needs during the periods of reduced sales and net cash flows from operations, we have generally utilized our revolving credit facilities and repay such borrowings in periods of higher cash flow. We typically generate the majority of our cash flow in the third and fourth quarters.

Net sales for the quarter ended July 4, 2015 were $331.2 million, representing an increase of $11.3 million, or 3.6%, compared to $319.9 million for the same period in 2014. The sales growth was primarily driven by higher sales of our integrated products, particularly in our vinyl windows business, which was attributable to a combination of higher sales volume and average selling prices.

Gross profit for the quarter ended July 4, 2015 was $81.0 million, or 24.5% of net sales, compared to $72.0 million, or 22.5% of net sales, for the same period in 2014. Compared to the prior year quarter, we achieved an approximate 200 basis point increase in gross profit margin as a result of our continued focus on driving profitability through our integrated product offerings. The $9.0 million improvement in gross profit was predominantly attributable to the continued improvement in our windows business, which resulted from higher sales volume and average selling prices, as well as improved operational execution, compared to the prior year quarter. Furthermore, we also incurred fewer costs related to the continued roll out of our new window platform on the West Coast in the current year, compared to the launch on the East Coast in the prior year.

Selling, general and administrative (“SG&A”) expenses for the quarter ended July 4, 2015 were $62.2 million, compared to $60.3 million of net sales for the same period in 2014, reflecting 18.8% of net sales for each period. The $1.9 million, or 3.2%, increase in SG&A expenses was primarily due to an increase in costs associated with the performance-based incentive program resulting from improved operating results in 2015 and higher employee compensation expense to support the growth of our ISS business, supply center operations and other corporate initiatives.

Income from operations was $18.8 million for the quarter ended July 4, 2015, increased $7.1 million, compared to $11.7 million for the quarter ended June 28, 2014.

Our results for the quarter ended July 4, 2015 were significantly impacted by a weaker Canadian dollar, compared to the prior year quarter. Foreign currency translation negatively impacted net sales, gross profit and operating income by approximately $9 million, $7 million and $5 million, respectively. Furthermore, the quarter ended July 4, 2015 included one less sales day, compared to the quarter ended June 28, 2014.

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Results of Operations

The following table sets forth our results of operations for the periods indicated (in thousands):

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Net sales (1)	$	331,249		$	319,875		$	551,615		$	516,464
Cost of sales	250,234			247,862			428,697			410,036
Gross profit	81,015			72,013			122,918			106,428
Selling, general and administrative expenses	62,166			60,266			120,636			118,931
Income (loss) from operations	18,849			11,747			2,282			(12,503		)
Interest expense	21,156			20,759			41,862			41,079
Foreign currency loss	601			278			1,117			616
Loss before income taxes	(2,908		)	(9,290		)	(40,697		)	(54,198		)
Income tax expense	2,230			1,318			2,763			2,759
Net loss	$	(5,138	)	$	(10,608	)	$	(43,460	)	$	(56,957	)
Other Data:
EBITDA (2)	$	28,296		$	22,158		$	21,092		$	8,148
Adjusted EBITDA (2)	30,526			27,540			24,129			20,675

(1) The following table presents a summary of net sales by principal product offering as a percentage of net sales (dollars in thousands):

	Quarters Ended								Six Months Ended
	July 4, 2015		% of Net Sales		June 28, 2014		% of Net Sales		July 4, 2015		% of Net Sales		June 28, 2014		% of Net Sales
Vinyl windows	$	117,387	35.4	%	$	106,390	33.3	%	$	199,641	36.2	%	$	176,030	34.1	%
Vinyl siding products	58,353		17.6	%	59,628		18.6	%	93,518		17.0	%	93,722		18.1	%
Metal products	41,837		12.6	%	40,500		12.7	%	70,244		12.7	%	67,807		13.1	%
Third-party manufactured products	80,971		24.4	%	84,283		26.3	%	128,470		23.3	%	127,195		24.6	%
Other products and services	32,701		10.0	%	29,074		9.1	%	59,742		10.8	%	51,710		10.1	%
	$	331,249	100.0	%	$	319,875	100.0	%	$	551,615	100.0	%	$	516,464	100.0	%

(2) EBITDA is calculated as net income plus interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as EBITDA adjusted to reflect certain adjustments that are used in calculating covenant compliance under the Amended and Restated Revolving Credit Agreement governing our senior secured asset-based revolving credit facilities (the “ABL facilities”) and the indenture governing our 9.125% Senior Secured Notes due November 1, 2017 (the “Indenture”). We consider EBITDA and Adjusted EBITDA to be important indicators of our operational strength and performance of our business. We have included Adjusted EBITDA because it is a key financial measure used by our management to (i) assess our ability to service our debt or incur debt and meet our capital expenditure requirements; (ii) internally measure our operating performance; and (iii) determine our incentive compensation programs. EBITDA and Adjusted EBITDA have not been prepared in accordance with U.S. general accepted accounting principles (“GAAP”). Adjusted EBITDA as presented by us may not be comparable to similarly titled measures reported by other companies. EBITDA and Adjusted EBITDA are not measures determined in accordance with GAAP and should not be considered as an alternative to, or more meaningful than, net income (as determined in accordance with GAAP) as a measure of our operating results or net cash provided by operating activities (as determined in accordance with GAAP) as a measure of our liquidity.

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The reconciliation of our net loss to EBITDA and Adjusted EBITDA is as follows (in thousands):

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Net loss	$	(5,138	)	$	(10,608	)	$	(43,460	)	$	(56,957	)
Interest expense	21,156			20,759			41,862			41,079
Income tax expense	2,230			1,318			2,763			2,759
Depreciation and amortization	10,048			10,689			19,927			21,267
EBITDA	28,296			22,158			21,092			8,148
Purchase accounting related adjustments (a)	(874		)	(958		)	(1,751		)	(1,904		)
Restructuring costs (b)	—			—			—			(331		)
Executive officer separation and hiring costs (c)	110			765			152			2,748
Bank audit fees (d)	44			(4		)	76			26
Loss on disposal or write-off of assets	3			7			3			18
Stock-based compensation expense (e)	50			77			75			354
Non-cash expense adjustments (f)	(100		)	—			—			—
Other normalizing and unusual items (g)	2,396			5,217			3,365			11,000
Foreign currency loss (h)	601			278			1,117			616
Run-rate cost savings (i)	—			—			—			—
Adjusted EBITDA	$	30,526		$	27,540		$	24,129		$	20,675

(a) Represents the elimination of the impact of purchase accounting adjustments recorded as a result of a series of mergers completed on October 13, 2010, which include the following (in thousands):

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Pension expense adjustment	$	(634	)	$	(658	)	$	(1,265	)	$	(1,310	)
Amortization related to fair value adjustment of leased facilities	(62		)	(119		)	(130		)	(232		)
Amortization related to warranty liabilities	(178		)	(181		)	(356		)	(362		)
Total	$	(874	)	$	(958	)	$	(1,751	)	$	(1,904	)

(b) Represents a decrease in manufacturing restructuring charges recorded during the quarter ended March 29, 2014 as a result of the re-measurement of the restructuring liability related to the warehouse facility adjacent to our Ennis manufacturing plant, which we discontinued using during 2009.

(c) Represents separation and hiring costs, including payroll taxes and certain benefits and professional fees. For the quarter and six months ended June 28, 2014, the costs were primarily related to the resignations of Mr. Burris, our former President and Chief Executive Officer and Mr. Nagle, our former Chief Operations Officer, AMI Distribution and Services, as well as the hiring of Mr. Snyder as Interim Chief Executive Officer and the appointment of Mr. Strauss as President and Chief Executive Officer in May 2014.

(d) Represents bank audit fees incurred under our ABL facilities.

(e) Represents equity-based compensation related to restricted shares or deferred stock units issued to certain of our directors and officers.

(f) Represents the non-cash expense related to warranties claims paid in excess of warranty provision.

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(g) Represents the following (in thousands):

	Quarters Ended				Six Months Ended
	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Professional fees and other costs (i)	$	1,086	$	3,951	$	1,927	$	9,475
Accretion on lease liability (ii)	38		128		152		253
Excess severance costs (iii)	58		87		72		183
Insurance deductible due to flood damage (iv)	—		100		—		100
Payroll costs due to change of employment classification (v)	—		928		—		928
Excess legal expense (vi)	1,214		23		1,214		61
Total	$	2,396	$	5,217	$	3,365	$	11,000

(i) Represents management’s estimate of unusual consulting and advisory fees and other costs associated with corporate strategic initiatives. For the quarter and six months ended June 28, 2014, we incurred costs of $3.2 million and $7.9 million, respectively, related to the launch of our new window platform on the East Coast in 2014. We incurred costs of $0.5 million and $1.0 million, respectively, for the quarter and six months ended July 4, 2015 related to the continued roll out of the new window platform on the West Coast.

(ii) Represents accretion on the liability recorded at present value for future lease costs in connection with the warehouse facility adjacent to our Ennis manufacturing plant, which we discontinued using during 2009.

(iii) Represents management’s estimates for excess severance expense, primarily due to unusual changes within non-executive management.

(iv) Represents expenses incurred related to flood damage at our corporate headquarters building in May 2014.

(v) Represents additional payroll costs that were incurred related to a change of employment classification from exempt to non-exempt for certain non-managerial U.S. supply center-based employees.

(vi) Represents excess legal expense incurred primarily in connection with the defense of actions filed by plaintiffs. The expense for the quarter and six months ended July 4, 2015 represents legal costs for a lawsuit that we expect to settle in the second half of 2015.

(h) Represents foreign currency loss recognized in the Condensed Consolidated Statements of Comprehensive Loss, including (gain) loss on foreign currency exchange hedging agreements.

(i) Represents our estimate of run-rate cost savings related to actions taken or to be taken within 12 months after the consummation of any acquisition, amalgamation, merger or operational change and prior to or during such period, calculated on a pro forma basis as though such cost savings had been realized on the first day of the period for which Adjusted EBITDA is being calculated, net of the amount of actual benefits realized during such period from such actions and net of the further adjustments required by the ABL facilities and the Indenture, as described below.

Run-rate cost savings include actions around operational and engineering improvements, procurement savings and reductions in SG&A expenses. The run-rate cost savings were estimated to be approximately $9 million and $10 million for the six months ended July 4, 2015 and June 28, 2014, respectively. Our ABL facilities and the Indenture permit us to include run-rate cost savings in our calculation of Adjusted EBITDA in an amount, taken together with the amount of certain restructuring costs, up to 10% of Consolidated EBITDA, as defined in such debt instruments. As such, only $6.2 million of the approximately $9 million of cost savings identified for the four consecutive fiscal quarters ended July 4, 2015 and $9.6 million of the approximately $10 million for the four consecutive fiscal quarters ended June 28, 2014 have been included in the calculation of Adjusted EBITDA under the ABL facilities and the Indenture. However, as the 10% threshold is calculated using Consolidated EBITDA for the four consecutive fiscal quarter covenant test period, we are not presenting any run-rate cost savings when calculating Adjusted EBITDA for the quarters or six months ended July 4, 2015 and June 28, 2014.

Quarter Ended July 4, 2015 Compared to Quarter Ended June 28, 2014

Net sales were $331.2 million for the quarter ended July 4, 2015, an increase of $11.3 million, or 3.6%, compared to $319.9 million for the same period in 2014. Excluding the unfavorable impact of foreign currency fluctuation of approximately $9 million, net sales would have increased 6% as compared to the same period in 2014. The sales growth was primarily driven by higher sales of our integrated products. Net sales increased $11.0 million, or 10.3% for vinyl windows and $3.9 million, or 14.6% for our Installed Sales Solutions (“ISS”) business, compared to the prior year quarter. The increase in net sales for our vinyl window products was attributable to a combination of higher sales volume and average selling prices. Window unit volume increased approximately 6%, primarily as a result of growth in the new construction market. Higher average selling prices for windows were achieved through both price increases that we implemented at the beginning of 2015, and favorable

22

product mix attained, in part, from the launch of our new window platform since early 2014. Also contributing to the overall net sales growth for the quarter was a $1.3 million, or 3.3%, increase in metal product sales. Compared to the prior year quarter, we experienced lower sales of $3.3 million, or 3.9%, in third-party manufactured products, primarily in roofing, and $1.3 million, or 2.1%, in vinyl siding sales.

Gross profit for the quarter ended July 4, 2015 was $81.0 million, or 24.5% of net sales, compared to gross profit of $72.0 million, or 22.5% of net sales, for the same period in 2014. Compared to the prior year quarter, we achieved an approximate 200 basis point increase in gross profit margin as a result of our continued focus on driving profitability through our integrated products. The $9.0 million improvement in gross profit was primarily due to higher average selling prices of $7.2 million, favorable product mix of $2.5 million and higher sales volume of $2.3 million, compared to the prior year quarter. In addition, compared to the same period in 2014, we achieved operational efficiencies of approximately $2 million, primarily in our window plants, and incurred $2.6 million fewer costs related to the continued roll out of our new window platform on the West Coast in the current year, compared to the launch on the East Coast in the prior year. Increases in gross profit were partially offset by the negative impact of foreign currency fluctuation of approximately $7 million due to a weaker Canadian dollar in 2015 compared to the prior year period.

SG&A expenses were $62.2 million for the quarter ended July 4, 2015, compared to $60.3 million for the same period in 2014, reflecting 18.8% of net sales for each period. The $1.9 million, or 3.2%, increase in SG&A expenses was primarily due to a $2.5 million increase in costs associated with the performance-based incentive program and a $2.1 million increase in employee compensation expense to support the growth of our ISS business, supply center operations and other corporate initiatives. We also incurred $1.2 million in legal costs for a lawsuit that we expect to settle in the second half of 2015. These increases in SG&A expenses were partially offset by lower marketing-related costs of $1.1 million, decreased executive officers’ separation and hiring costs of $0.7 million and lower professional fees of $0.5 million, compared to the prior year period. Also, there was a prior period charge of $0.9 million for additional payroll costs related to a change of employment classification from exempt to non-exempt for certain non-managerial U.S. supply center-based employees. Compared to the prior year quarter, SG&A expenses were favorably impacted by approximately $2 million due to a weaker Canadian dollar in 2015.

Income from operations was $18.8 million and $11.7 million for the quarters ended July 4, 2015 and June 28, 2014, respectively.

Interest expense was $21.2 million and $20.8 million for the quarters ended July 4, 2015 and June 28, 2014, respectively. The $0.4 million increase in interest expense was primarily related to borrowings on the ABL facilities.

The income tax expense of $2.2 million and $1.3 million for the quarters ended July 4, 2015 and June 28, 2014, reflected negative effective income tax rates of 76.7% and 14.2%, respectively. The effective tax rate for both periods vary from the statutory rate, primarily as a result of operating losses in the U.S. with no tax benefit recognized due to the valuation allowance against net U.S. deferred tax assets, and income tax expense on foreign income.

Net loss for the quarter ended July 4, 2015 was $5.1 million compared to a net loss of $10.6 million for the same period in 2014.

Six Months Ended July 4, 2015 Compared to Six Months Ended June 28, 2014

Net sales were $551.6 million for the six months ended July 4, 2015, an increase of $35.1 million, or 6.8%, compared to $516.5 million for the same period in 2014. Excluding the unfavorable impact of foreign currency fluctuation of approximately $13 million, net sales would have increased 9% as compared to the same period in 2014. The sales growth was primarily driven by higher sales of our integrated products. Net sales increased $23.6 million, or 13.4% for vinyl windows and $8.2 million, or 17.0% for our ISS business, compared to the prior year period. The increase in net sales for our vinyl window products was attributable to a combination of higher sales volume and average selling prices. Window unit volume increased approximately 9%, which reflected growth from both new construction and repair and remodel markets. Higher average selling prices for windows were achieved through both price increases that we implemented at the beginning of 2015, and favorable product mix attained, in part, from the launch of our new window platform in early 2014. Also contributing to the overall net sales growth are a $2.4 million, or 3.6% increase in metal product sales and a $1.3 million, or 1.0% increase in net sales for third-party manufactured products. Vinyl siding sales was relatively flat compared to the prior year period.

Gross profit for the six months ended July 4, 2015 was $122.9 million, or 22.3% of net sales, compared to gross profit of $106.4 million, or 20.6% of net sales, for the same period in 2014. Compared to the prior year period, we achieved an approximate 170 basis point increase in gross profit margin as a result of our continued focus on driving profitability through our integrated products. The $16.5 million improvement in gross profit was primarily due to higher average selling prices of $9.6 million, higher sales volume of $7.7 million and favorable product mix of $5.9 million, compared to the prior year quarter. In addition, compared to the same period in 2014, we achieved operational efficiencies of approximately $2 million, primarily in our window plants and incurred $5.5 million fewer costs related to the continued roll out of our new window platform on the

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West Coast in the current year, compared to the launch on the East Coast in the prior year. Increases in gross profit were partially offset by higher material costs of $3.3 million and negative impact of foreign currency fluctuation of approximately $11 million due to a weaker Canadian dollar in 2015, compared to the prior year period.

SG&A expenses were $120.6 million, or 21.9% of net sales, for the six months ended July 4, 2015, compared to $118.9 million, or 23.0% of net sales, for the same period in 2014. The $1.7 million, or 1.4%, increase in SG&A expenses was primarily due to a $4.0 million increase in employee compensation expense to support the growth of our ISS business, supply center operations and other corporate initiatives. Also contributing to the unfavorable variance was a $2.9 million increase in costs associated with the performance-based incentive program resulting from improved operating results in 2015. Further, we incurred $1.2 million in legal costs for a lawsuit that we expect to settle in the second half of 2015. These increases in SG&A expenses were partially offset by a $2.6 million decrease in executive officers’ separation and hiring costs, lower marketing-related costs of $2.2 million, and a reduction of professional fees of $0.9 million, compared to the prior year period. Also, there was a prior year charge of $0.9 million for additional payroll costs related to a change of employment classification from exempt to non-exempt for certain non-managerial U.S. supply center-based employees. Compared to the prior year period, SG&A expenses were favorably impacted by approximately $3 million due to a weaker Canadian dollar in 2015.

Income from operations was $2.3 million for the six months ended July 4, 2015, compared to a loss from operations of $12.5 million for the six months ended June 28, 2014.

Interest expense was $41.9 million and $41.1 million for the six months ended July 4, 2015 and June 28, 2014, respectively. The $0.8 million increase in interest expense was primarily related to borrowings on the ABL facilities.

The income tax expense for each six-month period ended July 4, 2015 and June 28, 2014 was $2.8 million, which reflected negative effective income tax rates of 6.8% and 5.1%, respectively. The lower than statutory effective tax rate for both periods was primarily a result of operating losses in the U.S. with no tax benefit recognized due to the valuation allowance against net U.S. deferred tax assets, and income tax expense on foreign income.

Net loss for the six months ended July 4, 2015 was $43.5 million compared to a net loss of $57.0 million for the same period in 2014.

Recent Accounting Pronouncements

In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value (“NRV”). The new guidance eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin) under the current lower of cost or market guidance. ASU 2015-11 applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. It is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2016. We do not believe that the adoption of the provisions of ASU 2015-11 will have a material impact on our consolidated financial position, results of operations or cash flows.

In May 2015, the FASB issued ASU No. 2015-07, Disclosure for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (“ASU 2015-07”). ASU 2015-07 eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. ASU 2015-07 requires an entity to disclose the fair value of investments measured using the net asset value practical expedient so that the financial statement user can reconcile amounts reported in the fair value hierarchy table to amounts reported on the balance sheet. ASU 2015-07 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. We do not believe that the adoption of the provisions of ASU 2015-07 will have a material impact on our consolidated financial position, results of operations or cash flows.

In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”). ASU 2015-05 provides guidance on determining whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software. If the arrangement contains a software license, then the customer should account for the fees related to the software license element consistent with the acquisition of other software licenses. If the arrangement does not contain a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. An entity may apply the guidance retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. We do not believe that the adoption of the provisions of ASU 2015-05 will have a material impact on our consolidated financial position, results of operations or cash flows.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs related to a recognized debt liability be presented in the balance sheet as

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a direct deduction from the carrying amount of that debt liability rather than an asset, consistent with the presentation of debt discounts. The recognition and measurement of debt issuance costs are not affected by the new guidance. ASU 2015-03 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. An entity is required to apply ASU 2015-03 on a retrospective basis and comply with the applicable disclosures, which include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (that is, the debt issuance cost asset and the debt liability). We do not believe that the adoption of the provisions of ASU 2015-03 will have a material impact on our consolidated financial position, results of operations or cash flows.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued and to provide certain disclosures if it concludes that substantial doubt exists. ASU 2014-15 is effective for all entities for the annual period ending after December 15, 2016, and for annual and interim periods thereafter, with early adoption permitted. We do not believe that the adoption of the provisions of ASU 2014-15 will have a material impact on our consolidated financial position, results of operations or cash flows.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The comprehensive new revenue recognition standard supersedes all existing revenue guidance under GAAP and international financial reporting standards. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard establishes the following five steps that require companies to exercise judgment when considering the terms of any contract, including all relevant facts and circumstances:

Step 1: Identify the contract(s) with the customer,

Step 2: Identify the separate performance obligations in the contract,

Step 3: Determine the transaction price,

Step 4: Allocate the transaction price to the separate performance obligations, and

Step 5: Recognize revenue when each performance obligation is satisfied.

The new standard also requires significantly more interim and annual disclosures. The new standard allows for either full retrospective or modified retrospective adoption. ASU 2014-09 is effective for fiscal years and interim periods within those years, beginning after December 15, 2016. In July 2015, the FASB confirmed its decision to defer the effective date of the new revenue standard by one year. We are currently assessing the potential impact of the new requirements under the standard.

Liquidity and Capital Resources

Cash Flows

The following sets forth a summary of our cash flows for the periods indicated (in thousands):

	Six Months Ended
	July 4, 2015			June 28, 2014
Net cash used in operating activities	$	(38,679	)	$	(88,431	)
Net cash used in investing activities	(9,893		)	(5,238		)
Net cash provided by financing activities	46,678			80,114

As of July 4, 2015, we had cash and cash equivalents of $3.2 million and $0.8 million in the United States and Canada, respectively. As of July 4, 2015, we had available borrowing capacity of $64.3 million under our ABL facilities, after giving effect to outstanding letters of credit and borrowing base limitations. We believe that our borrowing capacity under the ABL facilities and current cash and cash equivalents provide adequate liquidity to maintain our operations and capital expenditure requirements and service our debt obligations for the next 12 months.

Cash Flows from Operating Activities

Net cash used in operating activities was $38.7 million for the six months ended July 4, 2015, compared to $88.4 million for the same period in 2014. The $49.7 million decrease in the use of cash was primarily driven by improvement in working capital of $38.1 million and a lower net loss, compared to the prior year period.

Change in accounts receivable was a use of cash of $41.5 million for the six months ended July 4, 2015, compared to $36.3 million for the six months ended June 28, 2014. The net decrease in cash flow from accounts receivable of $5.2 million

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reflected higher sales for the first six months of 2015 compared to the prior year period. Change in inventory was a use of cash of $21.3 million for the six months ended July 4, 2015, compared to $46.5 million for six months ended June 28, 2014. The lower use of cash in the current year period was primarily driven by working capital initiatives during 2015 and the timing of inventory builds for seasonal demands for the second half of the year. During 2014, we increased inventory at our supply centers to ensure that we had a variety of products to better service our contractor customers, which led to higher inventory levels at the end of 2014, the consequence of which was a relatively lower use of cash for the six months ended July 4, 2015, compared to the six months ended June 28, 2014. Change in accounts payable and accrued liabilities was a source of cash of $42.7 million for the six months ended July 4, 2015, compared to a source of cash of $30.5 million for the six months ended June 28, 2014. The increase in cash flows of $12.2 million from accounts payable and accrued liabilities was primarily due to working capital initiatives and the timing of inventory purchases. Change in other assets and liabilities was a source of cash of $0.8 million for the six months ended July 4, 2015, compared to a use of cash of $6.5 million for the six months ended June 28, 2014. The increase in cash flows of $7.3 million was primarily due to timing of prepayments.

Cash Flows from Investing Activities

Net cash used in investing activities consisted of $9.9 million and $5.2 million of capital expenditures during the six months ended July 4, 2015 and June 28, 2014, respectively. The capital expenditures for the current year period related to various investments at our manufacturing facilities, while the capital expenditures for the prior year period primarily related to investments in our new window platform that was launched on the East Coast in early 2014.

Cash Flows from Financing Activities

Net cash provided by financing activities for the six months ended July 4, 2015 included borrowings of $99.7 million under our ABL facilities offset by repayments of $53.1 million. Net cash provided by financing activities for the six months ended June 28, 2014, included borrowings of $121.2 million under our ABL facilities. These inflows were partially offset by repayments of $41.1 million under our ABL facilities.

Description of Our Indebtedness

9.125% Senior Secured Notes due 2017

In October 2010, our Company and our wholly owned subsidiary, AMH New Finance, Inc. (collectively, the “Issuers”) issued and sold $730.0 million of 9.125% Senior Secured Notes due November 1, 2017 (the “existing notes”). The existing notes bear interest at a rate of 9.125% per annum, payable on May 1 and November 1 each year, and are unconditionally guaranteed, jointly and severally, by each of the Issuers’ direct and indirect domestic subsidiaries that guarantees our obligations under the senior secured asset-based revolving credit facilities (the “ABL facilities”).

On May 1, 2013, the Issuers issued and sold an additional $100.0 million in aggregate principal amount of 9.125% Senior Secured Notes due November 1, 2017 (the “new notes” and, together with the existing notes, the “9.125% notes”) at an issue price of 106.00% of the principal amount of the new notes in a private placement. We used the net proceeds of the offering to repay the outstanding borrowings under our ABL facilities and for other general corporate purposes. The new notes were issued as additional notes under the same indenture, dated October 13, 2010, governing the existing notes, as a supplemented by a supplemental indenture (collectively, the “Indenture”). On October 31, 2013, all of the new notes were exchanged for 9.125% Senior Secured Notes due 2017, which have been registered under the Securities Act of 1933, as amended. The new notes are consolidated with and form a single class with the existing notes and have the same terms as to status, redemption, collateral and otherwise (other than issue date, issue price and first interest payment date) as the existing notes. The debt premium related to the issuance of the new notes is being amortized into interest expense over the life of the new notes. The unamortized premium of $3.4 million is included in the long-term debt balance for the 9.125% notes. The effective interest rate of the new notes, including the premium, is 7.5% as of July 4, 2015.

The 9.125% notes, at par value of $830.0 million, have an estimated fair value, classified as a Level 1 measurement, of $693.1 million and $652.8 million based on quoted market prices as of July 4, 2015 and January 3, 2015, respectively.

We may from time to time, in our sole discretion, purchase, redeem or retire the 9.125% notes in privately negotiated or open market transactions, by tender offer or otherwise.

ABL Facilities

In October 2010, we entered into the ABL facilities in the amount of $225.0 million (comprised of a $150.0 million U.S. facility and a $75.0 million Canadian facility) pursuant to a revolving credit agreement dated October 13, 2010, which was subsequently amended and restated on April 18, 2013 (the “Amended and Restated Revolving Credit Agreement”) to, among other things, extend the maturity date of the revolving credit agreement from October 13, 2015 to the earlier of (i) April 18,

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2018 and (ii) 90 days prior to the maturity date of the existing notes. Subsequently, we terminated the tranche B revolving credit commitments of $12.0 million and wrote off $0.5 million of deferred financing fees related to the ABL facilities.

At our option, the U.S. and Canadian tranche A revolving credit loans under the Amended and Restated Revolving Credit Agreement governing the ABL facilities bear interest at the rate equal to (1) the London Interbank Offered Rate (“LIBOR”) (for eurodollar loans under the U.S. facility) or the Canadian Dealer Offered Rate (“CDOR”) (for loans under the Canadian facility), plus an applicable margin of 2.25% as of July 4, 2015, or (2) the alternate base rate (for alternate base rate loans under the U.S. facility, which is the highest of a prime rate, the Federal Funds Effective Rate plus 0.50% and a one-month LIBOR rate plus 1.0% per annum) or the alternate Canadian base rate (for loans under the Canadian facility, which is the higher of a Canadian prime rate and the 30-day CDOR plus 1.0%), plus an applicable margin of 1.25% as of July 4, 2015, in each case, which interest rate margin may vary in 25 basis point increments between three pricing levels determined by reference to the average excess availability in respect of the U.S. and Canadian tranche A revolving credit loans. In addition to paying interest on outstanding principal under the ABL facilities, we are required to pay a commitment fee in respect of the U.S. and Canadian tranche A revolving credit loans, payable quarterly in arrears, of 0.375%.

As of July 4, 2015, there was $116.1 million drawn under our ABL facilities and $64.3 million available for additional borrowings. The weighted average per annum interest rate applicable to borrowings under the U.S. portion and the Canadian portion of the ABL facilities was 2.6% and 4.5%, respectively, as of July 4, 2015. We had letters of credit outstanding of $12.4 million as of July 4, 2015, primarily securing insurance policy deductibles, certain lease facilities and our purchasing card program.

Covenant Compliance

There are no financial maintenance covenants included in the Amended and Restated Revolving Credit Agreement and the Indenture, other than a springing fixed charge coverage ratio of at least 1.00 to 1.00 under the Amended and Restated Credit Agreement, which is triggered as of the end of the most recently ended four consecutive fiscal quarter period for which financial statements have been delivered prior to such date of determination only when excess availability is less than, the greater of (i) 10.0% of the sum of (x) the lesser of (A) the U.S. tranche A borrowing base and (B) the U.S tranche A revolving credit commitments and (y) the lesser of (A) the Canadian tranche A borrowing base and (B) the Canadian tranche A revolving credit commitments and (ii) $20.0 million for a period of five consecutive business days until the 30th consecutive day when excess availability exceeds the above threshold. The Amended and Restated Revolving Credit Agreement and the Indenture permit us to include run-rate cost savings in our calculation of Consolidated EBITDA in an amount, taken together with the amount of certain restructuring costs, up to 10% of Consolidated EBITDA for the relevant test period.

On March 23, 2015, the Amended and Restated Revolving Credit Agreement was amended to permit, among other things, for the period commencing on and including April 3, 2015 through and including June 5, 2015, for the fixed charge coverage ratio to be tested or for a cash dominion period to commence only if excess availability is less than $15.0 million for a period of five consecutive business days. In addition, such amendment includes a provision for weekly borrowing base certificate reporting for the period commencing on and including April 12, 2015 through and including June 10, 2015 in lieu of delivery of a borrowing base certificate after each fiscal month.

The fixed charge coverage ratio was 0.50:1.00 for the four consecutive fiscal quarter test period ended July 4, 2015. We have not triggered such fixed charge coverage ratio covenant as of July 4, 2015, as excess availability of $44.3 million as of such date was in excess of the covenant trigger threshold. We do not expect to trigger such covenant for fiscal year 2015. Should the current economic conditions or other factors described herein cause our results of operations to deteriorate beyond our expectations, we may trigger such covenant and, if so triggered, may not be able to satisfy such covenant and be forced to refinance such debt or seek a waiver. Even if new financing is available, it may not be available on terms that are acceptable to us. If we are required to seek a waiver, we may be required to pay significant amounts to the lenders under our ABL facilities to obtain such a waiver.

In addition to the financial covenant described above, certain incurrences of debt and investments require compliance with financial covenants under the Amended and Restated Revolving Credit Agreement and the Indenture. The breach of any of these covenants could result in a default under the Amended and Restated Revolving Credit Agreement and the Indenture, and the lenders or note holders, as applicable, could elect to declare all amounts borrowed due and payable. See Part I, Item 1A. “Risk Factors” in our Annual Report. We were in compliance with such financial covenants as of July 4, 2015.

Effects of Inflation

The principal raw materials used by us are vinyl resin, aluminum, steel, resin stabilizers and pigments, glass, window hardware, and packaging materials, as well as diesel fuel, all of which have historically been subject to price changes. Raw material pricing on our key commodities has fluctuated significantly over the past several years. Our freight costs may also fluctuate based on changes in gasoline and diesel fuel costs related to our trucking fleet. Our ability to maintain gross margin levels on our products during periods of rising raw material costs and freight costs depends on our ability to obtain selling price

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increases. Furthermore, the results of operations for individual quarters can and have been negatively impacted by a delay between the timing of raw material cost increases and price increases on our products. There can be no assurance that we will be able to maintain the selling price increases already implemented or achieve any future price increases. At July 4, 2015, we had no raw material hedge contracts in place.

Forward-Looking Statements

All statements (other than statements of historical facts) included in this report regarding the prospects of the industry and our prospects, plans, financial position and business strategy may constitute forward-looking statements. In addition, forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “predict,” “potential” or “continue” or the negatives of these terms or variations of them or similar terminology. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we cannot provide any assurance that these expectations will prove to be correct. Such statements reflect the current views of our management with respect to our operations, results of operations and future financial performance. The following factors are among those that may cause actual results to differ materially from the forward-looking statements:

• declines in remodeling and home building industries, economic conditions and changes in interest rates, foreign currency exchange rates and other conditions;

• our substantial level of indebtedness;

• our ability to comply with certain financial covenants in the Indenture and ABL facilities and the restrictions such covenants impose on our ability to operate our business;

• our ability to generate sufficient cash, or access capital resources, to service all our debt obligations, working capital needs and planned capital expenditures;

• deteriorations in availability of consumer credit, employment trends, levels of consumer confidence and spending and consumer preferences;

• increases in competition from other manufacturers of vinyl and metal exterior residential building products as well as alternative building products;

• our substantial fixed costs;

• delays in the development of new or improved products or our inability to successfully develop new or improved products;

• changes in raw material costs and availability of raw materials and finished goods;

• consolidation of our customers;

• increases in union organizing activity;

• changes in weather conditions;

• our history of operating losses;

• our ability to attract and retain qualified personnel;

• in the event of default under the Indenture or the ABL facilities, the ability of creditors under the Indenture and the ABL facilities to foreclose on the capital stock of our operating subsidiaries;

• any impairment of goodwill or other intangible assets;

• future recognition of our deferred tax assets;

• increases in mortgage rates, changes in mortgage interest deductions and the reduced availability of financing;

• our exposure to foreign currency exchange risk;

• our control by investment funds affiliated with Hellman & Friedman, LLC; and

• the other factors discussed under Part I, Item 1A. “Risk Factors” in our Annual Report and elsewhere in this report.

The preceding list is not intended to be an exhaustive list of all of our forward-looking statements. The forward-looking statements are based on our beliefs, assumptions and expectations of future performance, taking into account the information currently available to us. These statements are only predictions based upon our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. Other sections of this report may include additional factors that could adversely impact our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time and it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. The occurrence of the events described under Part 1, Item 1A. “Risk Factors” in our Annual Report and elsewhere in this report could have a material adverse effect on our business, results of operations and financial condition.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of

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activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or occur. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this report to conform these statement to actual results or to changes in our expectations.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

From time to time, we may have outstanding borrowings under our ABL facilities and may incur additional borrowings for general corporate purposes, including working capital and capital expenditures. As of July 4, 2015, the interest rate applicable to outstanding loans under the U.S. and Canadian tranche A revolving facilities was, at our option, equal to either a United States or Canadian adjusted base rate plus an applicable margin ranging from 0.75% to 1.25%, or LIBOR plus an applicable margin ranging from 1.75% to 2.25%, with the applicable margin in each case depending on our quarterly average “excess availability” as defined in the credit facilities.

As of July 4, 2015, we had borrowings outstanding of $116.1 million under the ABL facilities. The effect of a 1.00% increase or decrease in interest rates would increase or decrease the total annual interest expense by $1.2 million.

We have $830.0 million aggregate principal amount of 9.125% notes outstanding as of July 4, 2015 that bear a fixed interest rate of 9.125% and mature in 2017. The fair value of our 9.125% notes is sensitive to changes in interest rates. In addition, the fair value is affected by our overall credit rating, which could be impacted by changes in our future operating results. These 9.125% notes have an estimated fair value of $693.1 million based on quoted market prices as of July 4, 2015.

Foreign Currency Exchange Risk

Our revenues are generated primarily from domestic customers and are realized in U.S. dollars. However, we realize revenues from sales made through our Canadian distribution centers in Canadian dollars. Our Canadian manufacturing facilities acquire raw materials and supplies from U.S. vendors, which results in foreign currency transactional gains and losses upon settlement of the obligations. Payment terms among Canadian manufacturing facilities and these vendors are short-term in nature. We may, from time to time, enter into foreign exchange forward contracts with maturities of less than three months to reduce our exposure to fluctuations in the Canadian dollar. As of July 4, 2015, we were a party to foreign exchange forward contracts for Canadian dollars, the value of which was immaterial.

A 10% strengthening or weakening from the levels experienced during the six month ended July 4, 2015 of the U.S. dollar relative to the Canadian dollar would have resulted in an approximate $5 million decrease or increase, respectively, in comprehensive loss for the six months ended July 4, 2015.

Commodity Price Risk

See Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Effects of Inflation” for a discussion of the market risk related to our principal raw materials (vinyl resin, aluminum, steel, resin stabilizers and pigments, glass, window hardware and packaging materials) and diesel fuel.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

During the fiscal period covered by this report, our management, with the participation of our Chief Executive Officer and Chief Financial Officer, completed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). Based upon this evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of the fiscal period covered by this report, the disclosure controls and procedures were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures.

Changes in Internal Control over Financial Reporting

There have been no changes to our internal control over financial reporting during the quarter ended July 4, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Items 2, 3, 4 and 5 are not applicable or the answer to such items is none; therefore, the items have been omitted and no reference is required in this Quarterly Report on Form 10-Q.

Item 1. Legal Proceedings

We are involved from time to time in litigation arising in the ordinary course of business, none of which, individually or in the aggregate, after giving effect to existing insurance coverage, is expected to have a material adverse effect on our financial position, results of operations or liquidity. From time to time, we are also involved in proceedings and potential proceedings relating to environmental and product liability matters.

Environmental Claims

The Woodbridge, New Jersey facility is currently the subject of an investigation and/or remediation before the New Jersey Department of Environmental Protection (“NJDEP”) under ISRA Case No. E20030110 for our wholly owned subsidiary, Gentek Building Products, Inc. (“Gentek”). The facility is currently leased by Gentek. Previous operations at the facility resulted in soil and groundwater contamination in certain areas of the property. In 1999, the property owner and Gentek signed a remediation agreement with NJDEP, pursuant to which the property owner and Gentek agreed to continue an investigation/remediation that had been commenced pursuant to a Memorandum of Agreement with NJDEP. Under the remediation agreement, NJDEP required posting of a remediation funding source of $0.1 million, which is currently satisfied by a $0.3 million standby letter of credit that was provided by Gentek to the NJDEP. During 2014, the delineation studies were completed and in early 2015 the Company was presented with several remedial plans. Based on the alternatives presented, the Company identified what it believed to be the most likely option and recorded the minimum liability for that option, which totaled $1.0 million as of January 3, 2015, the balance of which remains unchanged as of July 4, 2015. We believe this matter will not have a material adverse effect on our financial position, results of operations or liquidity.

Environmental claims, product liability claims and other claims are administered by us in the ordinary course of business, and we maintain pollution and remediation and product liability insurance covering certain types of claims. Although it is difficult to estimate our potential exposure to these matters, we believe that the resolution of these matters will not have a material adverse effect on our financial position, results of operations or liquidity.

Item 1A. Risk Factors

There have been no material changes to the risk factors disclosed in Part 1, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended January 3, 2015 filed with the Securities and Exchange Commission on March 23, 2015, which include detailed discussions of risk factors that could materially affect our business, financial condition or results of operations and are incorporated herein by reference.

Item 6. Exhibits

See Exhibit Index on the page immediately preceding the exhibits for a list of exhibits filed as part of this Quarterly Report on Form 10-Q, which Exhibit Index is incorporated herein by reference.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

			ASSOCIATED MATERIALS, LLC
			(Registrant)
Date:	August 4, 2015	By:	/s/ Scott F. Stephens
			Scott F. Stephens
			Executive Vice President and Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

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EXHIBIT INDEX

Exhibit Number	Description
3.1	Certificate of Formation of Associated Materials, LLC (incorporated by reference to Exhibit 3.1 to Associated Materials, LLC’s Annual Report on Form 10-K, filed with the SEC on March 25, 2008).
3.2	Amended and Restated Limited Liability Company Agreement of Associated Materials, LLC (incorporated by reference to Exhibit 3.2 to Associated Materials, LLC’s Annual Report on Form 10-K, filed with the SEC on March 21, 2014).
31.1	Certification of the Principal Executive Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of the Principal Financial Officer pursuant to Rule 13a-14 of the Securities Exchange Act of 1934, as adopted, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1†	Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS†	XBRL Instance Document.
101.SCH†	XBRL Taxonomy Extension Schema Document.
101.CAL†	XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB†	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE†	XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF†	XBRL Taxonomy Extension Definition Linkbase Document.

† This document is being furnished in accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release Nos. 33-8238 and 34-47986.

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EX-31.1

Exhibit 31.1

Certification of the Principal Executive Officer

pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Brian C. Strauss, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Associated Materials, LLC;

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:	August 4, 2015	By:	/s/ Brian C. Strauss
			Brian C. Strauss
			President and Chief Executive Officer
			(Principal Executive Officer)

EX-31.2

Exhibit 31.2

Certification of the Principal Financial Officer

pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Scott F. Stephens, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Associated Materials, LLC;

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:	August 4, 2015	By:	/s/ Scott F. Stephens
			Scott F. Stephens
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer and Principal Accounting Officer)

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 Form 10-Q of Associated Materials, LLC (the “Company”) for the period ended July 4, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each of the undersigned officers certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company at the dates and for the periods presented.

Date:	August 4, 2015	By:	/s/ Brian C. Strauss
			Brian C. Strauss
			President and Chief Executive Officer
			(Principal Executive Officer)
Date:	August 4, 2015	By:	/s/ Scott F. Stephens
			Scott F. Stephens
			Executive Vice President and Chief Financial Officer
			(Principal Financial Officer and Principal Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

This Certification is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Report), irrespective of any general incorporation language contained in such filing.

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Product Warranty Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Standard Product Warranty Accrual Rollforward
Balance at the begining of the period	$ 89,246	$ 92,638	$ 89,940	$ 93,207
Provision for warranties issued and changes in estimates for pre-existing warranties	1,457	1,547	2,707	2,826
Claims paid	(1,735)	(1,728)	(3,063)	(3,188)
Foreign currency translation	(67)	434	(683)	46
Balance at the end of the period	$ 88,901	$ 92,891	$ 88,901	$ 92,891

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Subsidiary Guarantors Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	$ (38,679)	$ (88,431)
Investing Activities
Capital expenditures	(9,901)	(5,245)
Proceeds from sale of assets	8	7
Payments on loans to affiliates	0	0
Receipts on loans to affiliates	0
Net cash (used in) provided by investing activities	(9,893)	(5,238)
Financing Activities
Borrowings under ABL facilities	99,731	121,242
Payments under ABL facilities	(53,053)	(41,128)
Borrowings from affiliates	0	0
Repayments to affiliates	0
Net cash provided by (used in) financing activities	46,678	80,114
Effect of exchange rate changes on cash and cash equivalents	(40)	(417)
Net increase (decrease) in cash and cash equivalents	(1,934)	(13,972)
Cash and cash equivalents at beginning of period	5,963	20,815
Cash and cash equivalents at end of period	4,029	6,843
Company
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	(33,721)	(76,034)
Investing Activities
Capital expenditures	(8,731)	(4,528)
Proceeds from sale of assets	7	5
Payments on loans to affiliates	0	0
Receipts on loans to affiliates	2,000
Net cash (used in) provided by investing activities	(6,724)	(4,523)
Financing Activities
Borrowings under ABL facilities	48,200	94,700
Payments under ABL facilities	(34,700)	(20,700)
Borrowings from affiliates	31,706	5,689
Repayments to affiliates	(7,500)
Net cash provided by (used in) financing activities	37,706	79,689
Effect of exchange rate changes on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	(2,739)	(868)
Cash and cash equivalents at beginning of period	5,933	7,566
Cash and cash equivalents at end of period	3,194	6,698
Co-Issuer
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	0	0
Investing Activities
Capital expenditures	0	0
Proceeds from sale of assets	0	0
Payments on loans to affiliates	0	0
Receipts on loans to affiliates	0
Net cash (used in) provided by investing activities	0	0
Financing Activities
Borrowings under ABL facilities	0	0
Payments under ABL facilities	0	0
Borrowings from affiliates	0	0
Repayments to affiliates	0
Net cash provided by (used in) financing activities	0	0
Effect of exchange rate changes on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0
Cash and cash equivalents at end of period	0	0
Subsidiary Guarantors
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	6,787	5,938
Investing Activities
Capital expenditures	(81)	(249)
Proceeds from sale of assets	0	0
Payments on loans to affiliates	(6,706)	(5,689)
Receipts on loans to affiliates	0
Net cash (used in) provided by investing activities	(6,787)	(5,938)
Financing Activities
Borrowings under ABL facilities	0	0
Payments under ABL facilities	0	0
Borrowings from affiliates	0	0
Repayments to affiliates	0
Net cash provided by (used in) financing activities	0	0
Effect of exchange rate changes on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0
Cash and cash equivalents at end of period	0	0
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	(11,745)	(18,335)
Investing Activities
Capital expenditures	(1,089)	(468)
Proceeds from sale of assets	1	2
Payments on loans to affiliates	(25,000)	0
Receipts on loans to affiliates	7,500
Net cash (used in) provided by investing activities	(18,588)	(466)
Financing Activities
Borrowings under ABL facilities	51,531	26,542
Payments under ABL facilities	(18,353)	(20,428)
Borrowings from affiliates	0	0
Repayments to affiliates	(2,000)
Net cash provided by (used in) financing activities	31,178	6,114
Effect of exchange rate changes on cash and cash equivalents	(40)	(417)
Net increase (decrease) in cash and cash equivalents	805	(13,104)
Cash and cash equivalents at beginning of period	30	13,249
Cash and cash equivalents at end of period	835	145
Reclassification/Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	0	0
Investing Activities
Capital expenditures	0	0
Proceeds from sale of assets	0	0
Payments on loans to affiliates	31,706	5,689
Receipts on loans to affiliates	(9,500)
Net cash (used in) provided by investing activities	22,206	5,689
Financing Activities
Borrowings under ABL facilities	0	0
Payments under ABL facilities	0	0
Borrowings from affiliates	(31,706)	(5,689)
Repayments to affiliates	9,500
Net cash provided by (used in) financing activities	(22,206)	(5,689)
Effect of exchange rate changes on cash and cash equivalents	0	0
Net increase (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0
Cash and cash equivalents at end of period	$ 0	$ 0

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Retirement Plans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Domestic Plans
Net periodic benefit cost:
Service cost	$ 331	$ 323	$ 662	$ 645
Interest cost	806	788	1,612	1,576
Expected return on plan assets	(973)	(1,018)	(1,946)	(2,036)
Prior service cost	3	3	6	6
Cumulative actuarial net loss	104	0	208	0
Net periodic benefit cost	271	96	542	191
Foreign Plans
Net periodic benefit cost:
Service cost	649	606	1,290	1,197
Interest cost	802	924	1,593	1,827
Expected return on plan assets	(952)	(1,095)	(1,890)	(2,164)
Prior service cost	5	5	11	10
Cumulative actuarial net loss	60	14	119	28
Net periodic benefit cost	564	454	1,123	898
OPEB Plans
Net periodic benefit cost:
Service cost	2	3	6	6
Interest cost	44	49	87	98
Expected return on plan assets	0	0	0	0
Prior service cost	(2)	(2)	(4)	(4)
Cumulative actuarial net loss	(5)	(11)	(10)	(22)
Net periodic benefit cost	$ 39	$ 39	$ 79	$ 78

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Subsidiary Guarantors (Textuals) (Details) - Jul. 04, 2015	Total
Gentek Holdings, LLC and Gentek Building Products
Condensed Financial Statements, Captions [Line Items]
Ownership percent of guarantor subsidiaries	100.00%
AMH New Finance, Inc
Condensed Financial Statements, Captions [Line Items]
Ownership percent of guarantor subsidiaries	100.00%
Senior notes | 9.125% notes
Condensed Financial Statements, Captions [Line Items]
Debt instrument, interest rate, stated percentage	9.125%

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Accumulated Other Comprehensive Loss (Table 2 Reclassification out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Reclassfications out of accumulated other comprehensive loss, net of tax			$ 299	$ 8
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Amortization of unrecognized prior service costs	$ 6	$ 6	13	12
Amortization of unrecognized cumulative actuarial net loss	159	3	317	6
Total before tax	165	9	330	18
Tax expense	(14)	(4)	(31)	(10)
Reclassfications out of accumulated other comprehensive loss, net of tax	$ 151	$ 5	$ 299	$ 8

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Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Allowance for Doubtful Accounts [Abstract]
Allowance for doubtful accounts, current	$ 3,564	$ 3,542
Allowance for doubtful accounts, non-current	4,682	4,549
Allowance for doubtful accounts receivable	$ 8,246	$ 8,091

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Product Warranty Costs (Tables)

6 Months Ended

Jul. 04, 2015

Standard Product Warranty Disclosure [Abstract]

Reconciliation of product warranty reserve

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

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Balance at the beginning of the period	$	89,246		$	92,638		$	89,940		$	93,207
Provision for warranties issued and changes in estimates for pre-existing warranties	1,457			1,547			2,707			2,826
Claims paid	(1,735		)	(1,728		)	(3,063		)	(3,188		)
Foreign currency translation	(67		)	434			(683		)	46
Balance at the end of the period	$	88,901		$	92,891		$	88,901		$	92,891

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Business Segments (Tables) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Revenue from External Customer [Line Items]
Revenues	$ 331,249	$ 319,875	$ 551,615	$ 516,464
Vinyl Windows [Member]
Revenue from External Customer [Line Items]
Revenues	117,387	106,390	199,641	176,030
Vinyl Siding Products [Member]
Revenue from External Customer [Line Items]
Revenues	58,353	59,628	93,518	93,722
Metal Products [Member]
Revenue from External Customer [Line Items]
Revenues	41,837	40,500	70,244	67,807
Third-Party Payor [Member]
Revenue from External Customer [Line Items]
Revenues	80,971	84,283	128,470	127,195
Other Products and Services [Member]
Revenue from External Customer [Line Items]
Revenues	$ 32,701	$ 29,074	$ 59,742	$ 51,710

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Long-Term Debt (Senior Secured Notes Textuals) (Details) - Senior notes - USD ($) $ in Millions	Jul. 04, 2015	Jan. 03, 2015	May. 01, 2013	Oct. 31, 2010
Original 9.125% Secured Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount				$ 730.0
Debt instrument, interest rate, stated percentage				9.125%
New 9.125% Secured Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument, face amount			$ 100.0
Debt instrument, interest rate, stated percentage			9.125%
Notes sold at as a percentage of principle amount			106.00%
Debt instrument, unamortized discount (premium), net	$ 3.4
Debt instrument, interest rate, effective percentage	7.50%
9.125% notes
Debt Instrument [Line Items]
Debt instrument, face amount	$ 830.0
Debt instrument, interest rate, stated percentage	9.125%
Long-term debt, fair value	$ 693.1	$ 652.8

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Goodwill and Other Intangible Assets (Textual) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014	Jan. 03, 2015	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]
Intangible Assets Impaired Accumulated Impairment Loss	$ 169.6		$ 169.6
Goodwill, Impaired, Accumulated Impairment Loss	228.5		228.5
Impairment of Intangible Assets (Excluding Goodwill)					$ 89.7	$ 79.9
Amortization of Intangible Assets	$ 6.2	$ 4.3	$ 12.5	$ 10.7
Amortized customer bases
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			13 years
Amortized non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life			3 years

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Subsidiary Guarantors Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015	Jun. 28, 2014	Dec. 28, 2013
Current assets:
Cash and cash equivalents	$ 4,029	$ 5,963	$ 6,843	$ 20,815
Accounts receivable, net	163,915	125,121
Intercompany receivables	0	0
Inventories	164,578	145,532
Income taxes receivable	135	144
Deferred income taxes	2,439	2,439
Prepaid expenses and other current assets	11,798	15,859
Total current assets	346,894	295,058
Property, plant and equipment, net	94,789	93,900
Goodwill	311,194	317,257
Other intangible assets, net	418,554	437,300
Intercompany receivable	0	0
Other assets	15,875	18,662
Total assets	1,187,306	1,162,177
Current liabilities:
Accounts payable	140,421	94,768
Intercompany payables	0	0
Accrued liabilities	77,027	81,734
Deferred income taxes	2,116	1,292
Income taxes payable	1,779	1,782
Total current liabilities	221,343	179,576
Deferred income taxes	86,858	88,330
Other Liabilities, Noncurrent	123,849	129,016
Investment in subsidiaries	0	0
Long-term debt	949,456	903,404
Member’s equity	(194,200)	(138,149)
Total liabilities and member's equity	1,187,306	1,162,177
Company
Current assets:
Cash and cash equivalents	3,194	5,933	6,698	7,566
Accounts receivable, net	123,256	98,945
Intercompany receivables	331,936	356,421
Inventories	113,536	100,487
Income taxes receivable	68	0
Deferred income taxes	487	487
Prepaid expenses and other current assets	9,562	13,422
Total current assets	582,039	575,695
Property, plant and equipment, net	66,136	62,977
Goodwill	203,841	203,841
Other intangible assets, net	295,121	305,127
Intercompany receivable	0	0
Other assets	14,521	17,246
Total assets	1,161,658	1,164,886
Current liabilities:
Accounts payable	103,086	67,160
Intercompany payables	1,794	1,794
Accrued liabilities	64,724	70,439
Deferred income taxes	905	0
Income taxes payable	0	46
Total current liabilities	170,509	139,439
Deferred income taxes	51,012	51,012
Other Liabilities, Noncurrent	81,176	84,048
Investment in subsidiaries	140,305	128,532
Long-term debt	912,856	900,004
Member’s equity	(194,200)	(138,149)
Total liabilities and member's equity	1,161,658	1,164,886
Co-Issuer
Current assets:
Cash and cash equivalents	0	0	0	0
Accounts receivable, net	0	0
Intercompany receivables	0	0
Inventories	0	0
Income taxes receivable	0	0
Deferred income taxes	0	0
Prepaid expenses and other current assets	0	0
Total current assets	0	0
Property, plant and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Intercompany receivable	833,356	834,004
Other assets	0	0
Total assets	833,356	834,004
Current liabilities:
Accounts payable	0	0
Intercompany payables	0	0
Accrued liabilities	0	0
Deferred income taxes	0	0
Income taxes payable	0	0
Total current liabilities	0	0
Deferred income taxes	0	0
Other Liabilities, Noncurrent	0	0
Investment in subsidiaries	0	0
Long-term debt	833,356	834,004
Member’s equity	0	0
Total liabilities and member's equity	833,356	834,004
Subsidiary Guarantors
Current assets:
Cash and cash equivalents	0	0	0	0
Accounts receivable, net	9,151	6,411
Intercompany receivables	53,839	61,740
Inventories	9,316	10,969
Income taxes receivable	67	144
Deferred income taxes	1,952	1,952
Prepaid expenses and other current assets	779	996
Total current assets	75,104	82,212
Property, plant and equipment, net	1,353	1,474
Goodwill	16,713	16,713
Other intangible assets, net	32,858	33,084
Intercompany receivable	0	0
Other assets	17	45
Total assets	126,045	133,528
Current liabilities:
Accounts payable	3,198	6,679
Intercompany payables	0	0
Accrued liabilities	4,464	4,683
Deferred income taxes	0	0
Income taxes payable	0	0
Total current liabilities	7,662	11,362
Deferred income taxes	13,295	13,295
Other Liabilities, Noncurrent	22,428	22,395
Investment in subsidiaries	222,965	215,008
Long-term debt	0	0
Member’s equity	(140,305)	(128,532)
Total liabilities and member's equity	126,045	133,528
Non-Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	835	30	145	13,249
Accounts receivable, net	31,508	19,765
Intercompany receivables	1,794	1,794
Inventories	41,726	34,076
Income taxes receivable	0	0
Deferred income taxes	0	0
Prepaid expenses and other current assets	1,457	1,441
Total current assets	77,320	57,106
Property, plant and equipment, net	27,300	29,449
Goodwill	90,640	96,703
Other intangible assets, net	90,575	99,089
Intercompany receivable	0	0
Other assets	1,337	1,371
Total assets	287,172	283,718
Current liabilities:
Accounts payable	34,137	20,929
Intercompany payables	385,775	418,161
Accrued liabilities	7,839	6,612
Deferred income taxes	1,211	1,292
Income taxes payable	1,779	1,736
Total current liabilities	430,741	448,730
Deferred income taxes	22,551	24,023
Other Liabilities, Noncurrent	20,245	22,573
Investment in subsidiaries	0	0
Long-term debt	36,600	3,400
Member’s equity	(222,965)	(215,008)
Total liabilities and member's equity	287,172	283,718
Reclassification/Eliminations
Current assets:
Cash and cash equivalents	0	0	$ 0	$ 0
Accounts receivable, net	0	0
Intercompany receivables	(387,569)	(419,955)
Inventories	0	0
Income taxes receivable	0	0
Deferred income taxes	0	0
Prepaid expenses and other current assets	0	0
Total current assets	(387,569)	(419,955)
Property, plant and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Intercompany receivable	(833,356)	(834,004)
Other assets	0	0
Total assets	(1,220,925)	(1,253,959)
Current liabilities:
Accounts payable	0	0
Intercompany payables	(387,569)	(419,955)
Accrued liabilities	0	0
Deferred income taxes	0	0
Income taxes payable	0	0
Total current liabilities	(387,569)	(419,955)
Deferred income taxes	0	0
Other Liabilities, Noncurrent	0	0
Investment in subsidiaries	(363,270)	(343,540)
Long-term debt	(833,356)	(834,004)
Member’s equity	363,270	343,540
Total liabilities and member's equity	$ (1,220,925)	$ (1,253,959)

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Stock Plans (Details)	Jan. 03, 2015 shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	7,550,076

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(Manufacturing Restructuing Costs)

6 Months Ended

Jul. 04, 2015

Restructuring and Related Activities [Abstract]

Manufacturing Restructuring Costs

Manufacturing Restructuring Costs

The Company discontinued its use of the warehouse facility adjacent to the Ennis manufacturing plant during the second quarter of 2009 and recorded a restructuring liability related to the discontinued use of the warehouse facility. During the quarter ended March 29, 2014, the Company re-measured its restructuring liability due to changes in the expected amount and timing of cash flows related to taxes and insurance over the remaining lease term. As a result, the Company decreased the restructuring liability and recognized a benefit of $0.3 million within selling, general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Loss.

Changes in the manufacturing restructuring liability are as follows (in thousands):  

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Balance at the beginning of the period	$	1,710		$	2,166		$	1,960		$	2,772
Decrease	—			—			—			(331		)
Accretion of related lease obligations	38			128			152			252
Payments	(121		)	(185		)	(485		)	(584		)
Balance at the end of the period	$	1,627		$	2,109		$	1,627		$	2,109

The remaining restructuring liability is included in “Accrued liabilities” and “Other liabilities” in the Condensed Consolidated Balance Sheets and will continue to be paid over the lease term, which ends in April 2020.

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Long-Term Debt (ABL Facilities Textuals) (Details) - USD ($) $ in Millions	2 Months Ended	6 Months Ended	12 Months Ended
	Jun. 05, 2015	Jul. 04, 2015	Dec. 28, 2013	Oct. 12, 2010
Line of Credit Facility [Line Items]
Debt Instrument, Interest Rate Margin Pricing Increments		25 basis point
Fixed charge coverage ratio		0.50:1.00
Line of credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				$ 225.0
Line of credit facility, increase (decrease) in borrowing capacity, net			$ 12.0
Write off of deferred debt issuance cost			$ 0.5
Line of credit facility, unused capacity, commitment fee percentage		0.375%
Debt instrument, covenant minimum availability as percentage of borrowing base		10.00%
Debt instrument, covenant minimum availability	$ 15.0	$ 20.0
Line of credit facility, excess availability		44.3
Line of credit facility, remaining borrowing capacity		64.3
Letters of Credit Outstanding, Amount		$ 12.4
US facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				150.0
Line of credit facility, interest rate at period end		2.60%
Canadian facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				$ 75.0
Line of credit facility, interest rate at period end		4.50%
LIBOR | US facility
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis		LIBOR
CDOR | US facility
Line of Credit Facility [Line Items]
Debt instrument, basis spread on variable rate		2.25%
CDOR | Canadian facility
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis		CDOR
One-month LIBOR | US facility
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis		one-month LIBOR
Debt instrument, basis spread on variable rate		1.25%
Debt instrument, additional basis rate		1.00%
30 Day CDOR | Canadian facility
Line of Credit Facility [Line Items]
Debt instrument, additional basis rate		1.00%
US prime rate | US facility
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis		prime rate
Canadian primate rate | Canadian facility
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis		Canadian prime
Federal Funds Effective Rate | US facility
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis		Federal Funds Effective Rate
Debt instrument, additional basis rate		0.50%

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Retirement Plans (Tables)

6 Months Ended

Jul. 04, 2015

Compensation and Retirement Disclosure [Abstract]

Components of defined pension plan costs

Components of net periodic benefit cost for the Company’s Domestic Plans, Foreign Plans and OPEB Plans are as follows (in thousands):

	Quarters Ended
	July 4, 2015									June 28, 2014
	Domestic Plans			Foreign Plans			OPEB Plans			Domestic Plans			Foreign Plans			OPEB Plans
Service cost	$	331		$	649		$	2		$	323		$	606		$	3
Interest cost	806			802			44			788			924			49
Expected return on assets	(973		)	(952		)	—			(1,018		)	(1,095		)	—
Amortization of unrecognized:
Prior service costs (credits)	3			5			(2		)	3			5			(2		)
Cumulative actuarial net loss (gains)	104			60			(5		)	—			14			(11		)
Net periodic benefit cost	$	271		$	564		$	39		$	96		$	454		$	39

	Six Months Ended
	July 4, 2015									June 28, 2014
	Domestic Plans			Foreign Plans			OPEB Plans			Domestic Plans			Foreign Plans			OPEB Plans
Service cost	$	662		$	1,290		$	6		$	645		$	1,197		$	6
Interest cost	1,612			1,593			87			1,576			1,827			98
Expected return on assets	(1,946		)	(1,890		)	—			(2,036		)	(2,164		)	—
Amortization of unrecognized:
Prior service costs (credits)	6			11			(4		)	6			10			(4		)
Cumulative actuarial net loss (gains)	208			119			(10		)	—			28			(22		)
Net periodic benefit cost	$	542		$	1,123		$	79		$	191		$	898		$	78

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jul. 04, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of change in accumulated other comprehensive income (loss)

Changes in accumulated other comprehensive loss by component, net of tax, for the six months ended July 4, 2015 and June 28, 2014, respectively, are as follows (in thousands):

	Defined Benefit Pension and Other Postretirement Plans			Foreign Currency Translation			Accumulated Other Comprehensive Loss
Balance at January 3, 2015	$	(23,781	)	$	(36,842	)	$	(60,623	)
Other comprehensive loss before reclassifications, net of tax of $0	—			(12,965		)	(12,965		)
Amounts reclassified from accumulated other comprehensive loss, net of tax of $31	299			—			299
Balance at July 4, 2015	$	(23,482	)	$	(49,807	)	$	(73,289	)

	Defined Benefit Pension and Other Postretirement Plans			Foreign Currency Translation			Accumulated Other Comprehensive Loss
Balance at December 28, 2013	$	(3,513	)	$	(14,403	)	$	(17,916	)
Other comprehensive income before reclassifications, net of tax of $0	—			1,157			1,157
Amounts reclassified from accumulated other comprehensive loss, net of tax of $10	8			—			8
Balance at June 28, 2014	$	(3,505	)	$	(13,246	)	$	(16,751	)

Reclassifications out of accumulated other comprehensive income (loss)

Reclassifications out of accumulated other comprehensive loss for the quarters and six months ended July 4, 2015 and June 28, 2014, respectively, consist of the following (in thousands):

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Defined Benefit Pension and Other Postretirement Plans:
Amortization of unrecognized prior service costs	$	6		$	6		$	13		$	12
Amortization of unrecognized cumulative actuarial net loss	159			3			317			6
Total before tax	165			9			330			18
Tax expense	(14		)	(4		)	(31		)	(10		)
Net of tax	$	151		$	5		$	299		$	8

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Income Tax Disclosure [Abstract]
Income (loss) before income taxes	$ (2,908)	$ (9,290)	$ (40,697)	$ (54,198)
Income tax expense (benefit)	$ 2,230	$ 1,318	$ 2,763	$ 2,759
Effective Tax Rate	(76.70%)	(14.20%)	(6.80%)	(5.10%)

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Business Segments (Tables)

6 Months Ended

Jul. 04, 2015

Segment Reporting [Abstract]

Net sales by principal product offering

The following table sets forth a summary of net sales by principal product offering (in thousands):

	Quarters Ended				Six Months Ended
	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Vinyl windows	$	117,387	$	106,390	$	199,641	$	176,030
Vinyl siding products	58,353		59,628		93,518		93,722
Metal products	41,837		40,500		70,244		67,807
Third-party manufactured products	80,971		84,283		128,470		127,195
Other products and services	32,701		29,074		59,742		51,710
	$	331,249	$	319,875	$	551,615	$	516,464

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Subsidiary Guarantors (Tables)

6 Months Ended

Jul. 04, 2015

Jun. 28, 2014

Condensed Financial Statements, Captions [Line Items]

Condensed consolidating balance sheet

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	3,194		$	—	$	—		$	835		$	—		$	4,029
Accounts receivable, net	123,256			—		9,151			31,508			—			163,915
Intercompany receivables	331,936			—		53,839			1,794			(387,569		)	—
Inventories	113,536			—		9,316			41,726			—			164,578
Income taxes receivable	68			—		67			—			—			135
Deferred income taxes	487			—		1,952			—			—			2,439
Prepaid expenses and other current assets	9,562			—		779			1,457			—			11,798
Total current assets	582,039			—		75,104			77,320			(387,569		)	346,894
Property, plant and equipment, net	66,136			—		1,353			27,300			—			94,789
Goodwill	203,841			—		16,713			90,640			—			311,194
Other intangible assets, net	295,121			—		32,858			90,575			—			418,554
Intercompany receivable	—			833,356		—			—			(833,356		)	—
Other assets	14,521			—		17			1,337			—			15,875
Total assets	$	1,161,658		$	833,356	$	126,045		$	287,172		$	(1,220,925	)	$	1,187,306
LIABILITIES AND MEMBER'S DEFICIT
Current liabilities:
Accounts payable	$	103,086		$	—	$	3,198		$	34,137		$	—		$	140,421
Intercompany payables	1,794			—		—			385,775			(387,569		)	—
Accrued liabilities	64,724			—		4,464			7,839			—			77,027
Deferred income taxes	905			—		—			1,211			—			2,116
Income taxes payable	—			—		—			1,779			—			1,779
Total current liabilities	170,509			—		7,662			430,741			(387,569		)	221,343
Deferred income taxes	51,012			—		13,295			22,551			—			86,858
Other liabilities	81,176			—		22,428			20,245			—			123,849
Deficit in subsidiaries	140,305			—		222,965			—			(363,270		)	—
Long-term debt	912,856			833,356		—			36,600			(833,356		)	949,456
Member’s deficit	(194,200		)	—		(140,305		)	(222,965		)	363,270			(194,200		)
Total liabilities and member’s deficit	$	1,161,658		$	833,356	$	126,045		$	287,172		$	(1,220,925	)	$	1,187,306

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

January 3, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	5,933		$	—	$	—		$	30		$	—		$	5,963
Accounts receivable, net	98,945			—		6,411			19,765			—			125,121
Intercompany receivables	356,421			—		61,740			1,794			(419,955		)	—
Inventories	100,487			—		10,969			34,076			—			145,532
Income taxes receivable	—			—		144			—			—			144
Deferred income taxes	487			—		1,952			—			—			2,439
Prepaid expenses and other current assets	13,422			—		996			1,441			—			15,859
Total current assets	575,695			—		82,212			57,106			(419,955		)	295,058
Property, plant and equipment, net	62,977			—		1,474			29,449			—			93,900
Goodwill	203,841			—		16,713			96,703			—			317,257
Other intangible assets, net	305,127			—		33,084			99,089			—			437,300
Intercompany receivable	—			834,004		—			—			(834,004		)	—
Other assets	17,246			—		45			1,371			—			18,662
Total assets	$	1,164,886		$	834,004	$	133,528		$	283,718		$	(1,253,959	)	$	1,162,177
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	67,160		$	—	$	6,679		$	20,929		$	—		$	94,768
Intercompany payables	1,794			—		—			418,161			(419,955		)	—
Accrued liabilities	70,439			—		4,683			6,612			—			81,734
Deferred income taxes	—			—		—			1,292			—			1,292
Income taxes payable	46			—		—			1,736			—			1,782
Total current liabilities	139,439			—		11,362			448,730			(419,955		)	179,576
Deferred income taxes	51,012			—		13,295			24,023			—			88,330
Other liabilities	84,048			—		22,395			22,573			—			129,016
Deficit in subsidiaries	128,532			—		215,008			—			(343,540		)	—
Long-term debt	900,004			834,004		—			3,400			(834,004		)	903,404
Member’s deficit	(138,149		)	—		(128,532		)	(215,008		)	343,540			(138,149		)
Total liabilities and member’s deficit	$	1,164,886		$	834,004	$	133,528		$	283,718		$	(1,253,959	)	$	1,162,177

Condensed consolidating statements of comprehensive loss

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For The Quarter Ended July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	262,272		$	—	$	42,578		$	77,477		$	(51,078	)	$	331,249
Cost of sales	201,659			—		41,001			58,652			(51,078		)	250,234
Gross profit	60,613			—		1,577			18,825			—			81,015
Selling, general and administrative expenses	49,194			—		2,526			10,446			—			62,166
Income (loss) from operations	11,419			—		(949		)	8,379			—			18,849
Interest expense, net	19,276			—		1,662			218			—			21,156
Foreign currency loss	—			—		—			601			—			601
(Loss) income before income taxes	(7,857		)	—		(2,611		)	7,560			—			(2,908		)
Income tax expense	179			—		53			1,998			—			2,230
(Loss) income before equity income from subsidiaries	(8,036		)	—		(2,664		)	5,562			—			(5,138		)
Equity income from subsidiaries	2,898			—		5,562			—			(8,460		)	—
Net (loss) income	(5,138		)	—		2,898			5,562			(8,460		)	(5,138		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	151			—		60			50			(110		)	151
Foreign currency translation adjustments, net of tax	(1,379		)	—		(1,379		)	(1,379		)	2,758			(1,379		)
Total comprehensive (loss) income	$	(6,366	)	$	—	$	1,579		$	4,233		$	(5,812	)	$	(6,366	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Six Months Ended July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	441,910		$	—	$	72,740		$	124,725		$	(87,760	)	$	551,615
Cost of sales	350,626			—		69,807			96,024			(87,760		)	428,697
Gross profit	91,284			—		2,933			28,701			—			122,918
Selling, general and administrative expenses	96,851			—		3,370			20,415			—			120,636
(Loss) income from operations	(5,567		)	—		(437		)	8,286			—			2,282
Interest expense, net	38,064			—		3,323			475			—			41,862
Foreign currency loss	—			—		—			1,117			—			1,117
(Loss) income before income taxes	(43,631		)	—		(3,760		)	6,694			—			(40,697		)
Income tax expense	905			—		77			1,781			—			2,763
(Loss) income before equity income from subsidiaries	(44,536		)	—		(3,837		)	4,913			—			(43,460		)
Equity income from subsidiaries	1,076			—		4,913			—			(5,989		)	—
Net (loss) income	(43,460		)	—		1,076			4,913			(5,989		)	(43,460		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	299			—		118			98			(216		)	299
Foreign currency translation adjustments, net of tax	(12,965		)	—		(12,965		)	(12,965		)	25,930			(12,965		)
Total comprehensive loss	$	(56,126	)	$	—	$	(11,771	)	$	(7,954	)	$	19,725		$	(56,126	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For The Quarter Ended June 28, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries		Reclassification/ Eliminations			Consolidated
Net sales	$	251,215		$	—	$	45,778		$	79,125	$	(56,243	)	$	319,875
Cost of sales	201,020			—		42,595			60,490		(56,243		)	247,862
Gross profit	50,195			—		3,183			18,635		—			72,013
Selling, general and administrative expenses	48,100			—		1,104			11,062		—			60,266
Income from operations	2,095			—		2,079			7,573		—			11,747
Interest expense, net	20,292			—		—			467		—			20,759
Foreign currency loss	—			—		—			278		—			278
(Loss) income before income taxes	(18,197		)	—		2,079			6,828		—			(9,290		)
Income tax (benefit) expense	(378		)	—		(36		)	1,732		—			1,318
(Loss) income before equity income from subsidiaries	(17,819		)	—		2,115			5,096		—			(10,608		)
Equity income from subsidiaries	7,211			—		5,096			—		(12,307		)	—
Net (loss) income	(10,608		)	—		7,211			5,096		(12,307		)	(10,608		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	5			—		13			14		(27		)	5
Foreign currency translation adjustments, net of tax	10,211			—		10,211			10,211		(20,422		)	10,211
Total comprehensive (loss) income	$	(392	)	$	—	$	17,435		$	15,321	$	(32,756	)	$	(392	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For The Six Months Ended June 28, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries		Reclassification/ Eliminations			Consolidated
Net sales	$	408,154		$	—	$	76,440		$	123,819	$	(91,949	)	$	516,464
Cost of sales	335,338			—		71,545			95,102		(91,949		)	410,036
Gross profit	72,816			—		4,895			28,717		—			106,428
Selling, general and administrative expenses	95,899			—		2,046			20,986		—			118,931
(Loss) income from operations	(23,083		)	—		2,849			7,731		—			(12,503		)
Interest expense, net	40,264			—		1			814		—			41,079
Foreign currency loss	—			—		—			616		—			616
(Loss) income before income taxes	(63,347		)	—		2,848			6,301		—			(54,198		)
Income tax expense (benefit)	1,256			—		(63		)	1,566		—			2,759
(Loss) income before equity income from subsidiaries	(64,603		)	—		2,911			4,735		—			(56,957		)
Equity income from subsidiaries	7,646			—		4,735			—		(12,381		)	—
Net (loss) income	(56,957		)	—		7,646			4,735		(12,381		)	(56,957		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	8			—		25			28		(53		)	8
Foreign currency translation adjustments, net of tax	1,157			—		1,157			1,157		(2,314		)	1,157
Total comprehensive (loss) income	$	(55,792	)	$	—	$	8,828		$	5,920	$	(14,748	)	$	(55,792	)

Condensed consolidating statements of cash flows

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(33,721	)	$	—	$	6,787		$	(11,745	)	$	—		$	(38,679	)
INVESTING ACTIVITIES
Capital expenditures	(8,731		)	—		(81		)	(1,089		)	—			(9,901		)
Proceeds from the sale of assets	7			—		—			1			—			8
Payments on loans to affiliates	—			—		(6,706		)	(25,000		)	31,706			—
Receipts on loans to affiliates	2,000			—		—			7,500			(9,500		)	—
Net cash used in investing activities	(6,724		)	—		(6,787		)	(18,588		)	22,206			(9,893		)
FINANCING ACTIVITIES
Borrowings under ABL facilities	48,200			—		—			51,531			—			99,731
Payments under ABL facilities	(34,700		)	—		—			(18,353		)	—			(53,053		)
Borrowings from affiliates	31,706			—		—			—			(31,706		)	—
Repayments to affiliates	(7,500		)	—		—			(2,000		)	9,500			—
Net cash provided by financing activities	37,706			—		—			31,178			(22,206		)	46,678
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(40		)	—			(40		)
Net (decrease) increase in cash and cash equivalents	(2,739		)	—		—			805			—			(1,934		)
Cash and cash equivalents at beginning of period	5,933			—		—			30			—			5,963
Cash and cash equivalents at end of period	$	3,194		$	—	$	—		$	835		$	—		$	4,029

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Six Months EndedJune 28, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(76,034	)	$	—	$	5,938		$	(18,335	)	$	—		$	(88,431	)
INVESTING ACTIVITIES
Capital expenditures	(4,528		)	—		(249		)	(468		)	—			(5,245		)
Proceeds from the sale of assets	5			—		—			2			—			7
Payments on loans to affiliates	—			—		(5,689		)	—			5,689			—
Net cash used in investing activities	(4,523		)	—		(5,938		)	(466		)	5,689			(5,238		)
FINANCING ACTIVITIES
Borrowings under ABL facilities	94,700			—		—			26,542			—			121,242
Payments under ABL facilities	(20,700		)	—		—			(20,428		)	—			(41,128		)
Borrowings from affiliates	5,689			—		—			—			(5,689		)	—
Net cash provided by financing activities	79,689			—		—			6,114			(5,689		)	80,114
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(417		)	—			(417		)
Net decrease in cash and cash equivalents	(868		)	—		—			(13,104		)	—			(13,972		)
Cash and cash equivalents at beginning of period	7,566			—		—			13,249			—			20,815
Cash and cash equivalents at end of period	$	6,698		$	—	$	—		$	145		$	—		$	6,843

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(Goodwill and Other Intangible Assets )

6 Months Ended

Jul. 04, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The Company reviews goodwill for impairment on an annual basis at the beginning of the fourth quarter, or an interim basis if there are indicators of potential impairment. The Company did not recognize any impairment losses of its goodwill during the quarters and six months ended July 4, 2015 and June 28, 2014.

The changes in the carrying amount of goodwill are as follows (in thousands):

	Goodwill
Balance at January 3, 2015	$	317,257
Foreign currency translation	(6,063		)
Balance at July 4, 2015	$	311,194

At each of the periods ended July 4, 2015 and January 3, 2015, accumulated goodwill impairment losses were $228.5 million, exclusive of foreign currency translation.

The Company’s other intangible assets consist of the following (in thousands):

	July 4, 2015						January 3, 2015
	Cost		Accumulated Amortization		Net Carrying Value		Cost		Accumulated Amortization		Net Carrying Value
Amortized customer bases	$	318,449	$	117,890	$	200,559	$	321,836	$	106,655	$	215,181
Amortized non-compete agreements	20		18		2		20		16		4
Total amortized intangible assets	318,469		117,908		200,561		321,856		106,671		215,185
Non-amortized trade names (1)	217,993		—		217,993		222,115		—		222,115
Total intangible assets	$	536,462	$	117,908	$	418,554	$	543,971	$	106,671	$	437,300

(1) Balances at July 4, 2015 and January 3, 2015 include impairment charges of $169.6 million, of which $89.7 million were recorded in the second half of 2014 and $79.9 million recorded were recorded in 2011.

The Company’s non-amortized intangible assets consist of the Alside^®, Revere^®, Gentek^®, Preservation^® and Alpine^® trade names and are subject to testing for impairment on an annual basis at the beginning of the fourth quarter, or an interim basis if indicators of potential impairment are present. The Company did not recognize any impairment losses related to its other intangible assets during the quarters and six months ended July 4, 2015 and June 28, 2014.

Finite-lived intangible assets, which consist of customer bases and non-compete agreements, are amortized on a straight-line basis over their estimated useful lives. The estimated average amortization period for customer bases and non-compete agreements is 13 years and 3 years, respectively. Amortization expense related to other intangible assets was $6.2 million and $12.5 million for the quarter and six months ended July 4, 2015, respectively, and $4.3 million and $10.7 million for the quarter and six months ended June 28, 2014, respectively.

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Basis of Presentation (Details)	6 Months Ended
	Jul. 04, 2015 distributors facilities supply_centers	Oct. 13, 2010
Entity Information [Line Items]
Number of manufacturing facilities	11
Contractor customers	50,000
Company Owned Supply Centers | supply_centers	124
Independent distributors | distributors	275
Associated Materials, LLC
Entity Information [Line Items]
Entity ownership percentage by Holdings upon merger		100.00%
Hellman & Friedman LLC Affiliated Investment Funds
Entity Information [Line Items]
Entity ownership percentage by Holdings upon merger	97.00%

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Executive Officers' Separation and Hiring Costs (Details) - Executive Officer [Member] - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 28, 2014	Jun. 28, 2014	Jul. 04, 2015
Separation and Hiring Costs [Line Items]
Executive officers' separation and hiring, period costs	$ 0.8	$ 2.8
Supplemental Unemployment Benefits, Severance Benefits			$ 0.4

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Subsidiary Guarantors Condensed Consolidating Statement of Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Condensed Financial Statements, Captions [Line Items]
Net sales	$ 331,249	$ 319,875	$ 551,615	$ 516,464
Cost of sales	250,234	247,862	428,697	410,036
Gross profit	81,015	72,013	122,918	106,428
Selling, general and administrative expenses	62,166	60,266	120,636	118,931
Income from operations	18,849	11,747	2,282	(12,503)
Interest expense, net	21,156	20,759	41,862	41,079
Foreign currency loss	601	278	1,117	616
Income (loss) before income taxes	(2,908)	(9,290)	(40,697)	(54,198)
Income tax expense (benefit)	2,230	1,318	2,763	2,759
(Loss) income before equity income (loss) from subsidiaries	(5,138)	(10,608)	(43,460)	(56,957)
Equity income (loss) from subsidiaries	0	0	0	0
Net income (loss)	(5,138)	(10,608)	(43,460)	(56,957)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	151	5	299	8
Foreign currency translation adjustments, net of tax	(1,379)	10,211	(12,965)	1,157
Total comprehensive (loss) income	(6,366)	(392)	(56,126)	(55,792)
Company
Condensed Financial Statements, Captions [Line Items]
Net sales	262,272	251,215	441,910	408,154
Cost of sales	201,659	201,020	350,626	335,338
Gross profit	60,613	50,195	91,284	72,816
Selling, general and administrative expenses	49,194	48,100	96,851	95,899
Income from operations	11,419	2,095	(5,567)	(23,083)
Interest expense, net	19,276	20,292	38,064	40,264
Foreign currency loss	0	0	0	0
Income (loss) before income taxes	(7,857)	(18,197)	(43,631)	(63,347)
Income tax expense (benefit)	179	(378)	905	1,256
(Loss) income before equity income (loss) from subsidiaries	(8,036)	(17,819)	(44,536)	(64,603)
Equity income (loss) from subsidiaries	2,898	7,211	1,076	7,646
Net income (loss)	(5,138)	(10,608)	(43,460)	(56,957)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	(151)	5	299	8
Foreign currency translation adjustments, net of tax	(1,379)	10,211	(12,965)	1,157
Total comprehensive (loss) income	(6,366)	(392)	(56,126)	(55,792)
Co-Issuer
Condensed Financial Statements, Captions [Line Items]
Net sales	0	0	0	0
Cost of sales	0	0	0	0
Gross profit	0	0	0	0
Selling, general and administrative expenses	0	0	0	0
Income from operations	0	0	0	0
Interest expense, net	0	0	0	0
Foreign currency loss	0	0	0	0
Income (loss) before income taxes	0	0	0	0
Income tax expense (benefit)	0	0	0	0
(Loss) income before equity income (loss) from subsidiaries	0	0	0	0
Equity income (loss) from subsidiaries	0	0	0	0
Net income (loss)	0	0	0	0
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	0	0	0	0
Foreign currency translation adjustments, net of tax	0	0	0	0
Total comprehensive (loss) income	0	0	0	0
Subsidiary Guarantors
Condensed Financial Statements, Captions [Line Items]
Net sales	42,578	45,778	72,740	76,440
Cost of sales	41,001	42,595	69,807	71,545
Gross profit	1,577	3,183	2,933	4,895
Selling, general and administrative expenses	2,526	1,104	3,370	2,046
Income from operations	(949)	2,079	(437)	2,849
Interest expense, net	1,662	0	3,323	1
Foreign currency loss	0	0	0	0
Income (loss) before income taxes	(2,611)	2,079	(3,760)	2,848
Income tax expense (benefit)	53	(36)	77	(63)
(Loss) income before equity income (loss) from subsidiaries	(2,664)	2,115	(3,837)	2,911
Equity income (loss) from subsidiaries	5,562	5,096	4,913	4,735
Net income (loss)	2,898	7,211	1,076	7,646
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	(60)	13	118	25
Foreign currency translation adjustments, net of tax	(1,379)	10,211	(12,965)	1,157
Total comprehensive (loss) income	1,579	17,435	(11,771)	8,828
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net sales	77,477	79,125	124,725	123,819
Cost of sales	58,652	60,490	96,024	95,102
Gross profit	18,825	18,635	28,701	28,717
Selling, general and administrative expenses	10,446	11,062	20,415	20,986
Income from operations	8,379	7,573	8,286	7,731
Interest expense, net	218	467	475	814
Foreign currency loss	601	278	1,117	616
Income (loss) before income taxes	7,560	6,828	6,694	6,301
Income tax expense (benefit)	1,998	1,732	1,781	1,566
(Loss) income before equity income (loss) from subsidiaries	5,562	5,096	4,913	4,735
Equity income (loss) from subsidiaries	0	0	0	0
Net income (loss)	5,562	5,096	4,913	4,735
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	(50)	14	98	28
Foreign currency translation adjustments, net of tax	(1,379)	10,211	(12,965)	1,157
Total comprehensive (loss) income	4,233	15,321	(7,954)	5,920
Reclassification/Eliminations
Condensed Financial Statements, Captions [Line Items]
Net sales	(51,078)	(56,243)	(87,760)	(91,949)
Cost of sales	(51,078)	(56,243)	(87,760)	(91,949)
Gross profit	0	0	0	0
Selling, general and administrative expenses	0	0	0	0
Income from operations	0	0	0	0
Interest expense, net	0	0	0	0
Foreign currency loss	0	0	0	0
Income (loss) before income taxes	0	0	0	0
Income tax expense (benefit)	0	0	0	0
(Loss) income before equity income (loss) from subsidiaries	0	0	0	0
Equity income (loss) from subsidiaries	(8,460)	(12,307)	(5,989)	(12,381)
Net income (loss)	(8,460)	(12,307)	(5,989)	(12,381)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	110	(27)	(216)	(53)
Foreign currency translation adjustments, net of tax	2,758	(20,422)	25,930	(2,314)
Total comprehensive (loss) income	$ (5,812)	$ (32,756)	$ 19,725	$ (14,748)

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Current assets:
Cash and cash equivalents	$ 4,029	$ 5,963
Accounts receivable, net	163,915	125,121
Inventories	164,578	145,532
Income taxes receivable	135	144
Deferred income taxes	2,439	2,439
Prepaid expenses and other current assets	11,798	15,859
Total current assets	346,894	295,058
Property, plant and equipment, at cost	184,828	178,014
Less accumulated depreciation	90,039	84,114
Property, plant and equipment, net	94,789	93,900
Goodwill	311,194	317,257
Other intangible assets, net	418,554	437,300
Other assets	15,875	18,662
Total assets	1,187,306	1,162,177
Current liabilities:
Accounts payable	140,421	94,768
Accrued liabilities	77,027	81,734
Deferred income taxes	2,116	1,292
Income taxes payable	1,779	1,782
Total current liabilities	221,343	179,576
Deferred income taxes	86,858	88,330
Other liabilities	123,849	129,016
Long-term debt	$ 949,456	$ 903,404
Commitments and contingencies
Member’s equity	$ (194,200)	$ (138,149)
Total liabilities and member's equity	$ 1,187,306	$ 1,162,177

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Accumulated Other Comprehensive Loss (Table 1 Change in AOCI) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax [Roll Forward]
Balance at the beginning of the period	$ (23,781)	$ (3,513)
Other comprehensive loss before reclassifications	0	0
Reclassfications out of accumulated other comprehensive loss, net of tax	299	8
Balance at the end of the period	(23,482)	(3,505)
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, before Tax [Roll Forward]
Balance at the beginning of the period	(36,842)	(14,403)
Other comprehensive loss before reclassficiations	(12,965)	1,157
Reclassifications out of accumulated other comprehensive loss	0	0
Balance at the end of the period	(49,807)	(13,246)
Other Comprehensive Income (Loss), Before Tax [Roll Forward]
Balance at the beginning of the period	(60,623)	(17,916)
Other comprehensive loss before reclassifications	(12,965)	1,157
Reclassifications out of accumulated other comprehensive loss	299	8
Balance at the end of the period	$ (73,289)	$ (16,751)

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Allowance for Doubtful Accounts

6 Months Ended

Jul. 04, 2015

Allowance for Doubtful Accounts [Abstract]

Allowance for Doubtful Accounts

Allowance for Doubtful Accounts

The Company maintains an allowance for doubtful accounts for estimated losses resulting from the inability of its customers to make payments. The allowance for doubtful accounts is based on review of the overall condition of accounts receivable balances and review of significant past due accounts. If the financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Account balances are charged off against the allowance for doubtful accounts after all means of collection have been exhausted and the potential for recovery is considered remote. Accounts receivable that are not expected to be collected within one year, net of the related allowance for doubtful accounts, are included in “Other assets” in the Condensed Consolidated Balance Sheets.

Allowance for doubtful accounts on accounts receivable consists of the following (in thousands):

	July 4, 2015		January 3, 2015
Allowance for doubtful accounts, current	$	3,564	$	3,542
Allowance for doubtful accounts, non-current	4,682		4,549
	$	8,246	$	8,091

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Goodwill and Other Intangible Assets (Table 1 Changes in Goodwill) (Details) $ in Thousands	6 Months Ended
	Jul. 04, 2015 USD ($)
Goodwill [Rollforward]
Balance at January 3, 2015	$ 317,257
Foreign currency translation	(6,063)
Balance at July 4, 2015	$ 311,194

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Inventories (Tables)

6 Months Ended

Jul. 04, 2015

Inventory Disclosure [Abstract]

Schedule of inventory

Inventories are valued at the lower of cost (first in, first out) or market. Inventories consist of the following (in thousands):

	July 4, 2015		January 3, 2015
Raw materials	$	36,895	$	29,300
Work-in-progress	13,317		16,442
Finished goods	114,366		99,790
	$	164,578	$	145,532

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Goodwill and Other Intangible Assets (Table 2 Other Intangible Assets) (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Finite-Lived Intangible Assets, Net
Amortized Intangible Assets, Cost	$ 318,469	$ 321,856
Amortized Intangible Assets, Accumulated Amortization	117,908	106,671
Amortized Intangible Assets, Net Carrying Value	200,561	215,185
Intangible Assets, Net (Excluding Goodwill)
Amortized and Non-amortized Intangible Assets, Cost (Excluding Goodwill)	536,462	543,971
Amortized and Non-amortized Intangible Assets, Net (Excluding Goodwill)	418,554	437,300
Non-amortized trade names
Intangible Assets, Net (Excluding Goodwill)
Non-amortized Intangible Assets, Cost	217,993	222,115
Amortized customer bases
Finite-Lived Intangible Assets, Net
Amortized Intangible Assets, Cost	318,449	321,836
Amortized Intangible Assets, Accumulated Amortization	117,890	106,655
Amortized Intangible Assets, Net Carrying Value	200,559	215,181
Amortized non-compete agreements
Finite-Lived Intangible Assets, Net
Amortized Intangible Assets, Cost	20	20
Amortized Intangible Assets, Accumulated Amortization	18	16
Amortized Intangible Assets, Net Carrying Value	$ 2	$ 4

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Manufacturing Restructuring Costs (Tables)

6 Months Ended

Jul. 04, 2015

Restructuring and Related Activities [Abstract]

Reconciliation of manufacturing restructuring liability

Changes in the manufacturing restructuring liability are as follows (in thousands):  

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Balance at the beginning of the period	$	1,710		$	2,166		$	1,960		$	2,772
Decrease	—			—			—			(331		)
Accretion of related lease obligations	38			128			152			252
Payments	(121		)	(185		)	(485		)	(584		)
Balance at the end of the period	$	1,627		$	2,109		$	1,627		$	2,109

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Inventories

6 Months Ended

Jul. 04, 2015

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are valued at the lower of cost (first in, first out) or market. Inventories consist of the following (in thousands):

	July 4, 2015		January 3, 2015
Raw materials	$	36,895	$	29,300
Work-in-progress	13,317		16,442
Finished goods	114,366		99,790
	$	164,578	$	145,532

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Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Statement of Comprehensive Income [Abstract]
Net sales	$ 331,249	$ 319,875	$ 551,615	$ 516,464
Cost of sales	250,234	247,862	428,697	410,036
Gross profit	81,015	72,013	122,918	106,428
Selling, general and administrative expenses	62,166	60,266	120,636	118,931
Income from operations	18,849	11,747	2,282	(12,503)
Interest expense, net	21,156	20,759	41,862	41,079
Foreign currency loss (gain)	601	278	1,117	616
Income (loss) before income taxes	(2,908)	(9,290)	(40,697)	(54,198)
Income tax expense	2,230	1,318	2,763	2,759
Net income (loss)	(5,138)	(10,608)	(43,460)	(56,957)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	151	5	299	8
Foreign currency translation adjustments, net of tax	(1,379)	10,211	(12,965)	1,157
Total comprehensive income (loss)	$ (6,366)	$ (392)	$ (56,126)	$ (55,792)

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Commitments and Contingencies

6 Months Ended

Jul. 04, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

The Company is involved from time to time in litigation arising in the ordinary course of business, none of which, individually or in the aggregate, after giving effect to its existing insurance coverage, is expected to have a material adverse effect on its financial position, results of operations or liquidity. From time to time, the Company is also involved in proceedings and potential proceedings relating to environmental and product liability matters.

Environmental Claims

The Woodbridge, New Jersey facility is currently the subject of an investigation and/or remediation before the New Jersey Department of Environmental Protection (“NJDEP”) under ISRA Case No. E20030110 for the Company’s wholly owned subsidiary Gentek Building Products, Inc. (“Gentek”). The facility is currently leased by Gentek. Previous operations at the facility resulted in soil and groundwater contamination in certain areas of the property. In 1999, the property owner and Gentek signed a remediation agreement with NJDEP, pursuant to which the property owner and Gentek agreed to continue an investigation/remediation that had been commenced pursuant to a Memorandum of Agreement with NJDEP. Under the remediation agreement, NJDEP required posting of a remediation funding source of $0.1 million, which is currently satisfied by a $0.3 million standby letter of credit that was provided by Gentek to the NJDEP. During 2014, the delineation studies were completed and in early 2015 the Company was presented with several remedial plans. Based on the alternatives presented, the Company identified what it believed to be the most likely option and recorded the minimum liability for that option, which totaled $1.0 million as of January 3, 2015, the balance of which remains unchanged as of July 4, 2015. The Company believes this matter will not have a material adverse effect on the Company’s financial position, results of operations or liquidity.

Environmental claims, product liability claims and other claims are administered by the Company in the ordinary course of business, and the Company maintains pollution and remediation and product liability insurance covering certain types of claims. Although it is difficult to estimate the Company’s potential exposure to these matters, the Company believes that the resolution of these matters will not have a material adverse effect on its financial position, results of operations or liquidity.

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Document and Entity Information - Jul. 04, 2015 - shares	Total
Document Information [Line Items]
Entity Registrant Name	ASSOCIATED MATERIALS, LLC
Entity Central Index Key	0000802967
Document Type	10-Q
Document Period End Date	Jul. 04, 2015
Amendment Flag	false
Membership interests description	The registrant’s membership interests outstanding were held by an affiliate of the Registrant
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--01-02
Entity Filer Category	Non-accelerated Filer
Common Shares Outstanding	0

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(Business Segments)

6 Months Ended

Jul. 04, 2015

Segment Reporting [Abstract]

Business Segments

Business Segments

The Company is in the business of manufacturing and distributing exterior residential building products. The Company has a single operating segment and a single reportable segment. The Company’s chief operating decision maker is considered to be the Chief Executive Officer. The chief operating decision maker allocates resources and assesses performance of the business and other activities at the single operating segment level.

The following table sets forth a summary of net sales by principal product offering (in thousands):

	Quarters Ended				Six Months Ended
	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Vinyl windows	$	117,387	$	106,390	$	199,641	$	176,030
Vinyl siding products	58,353		59,628		93,518		93,722
Metal products	41,837		40,500		70,244		67,807
Third-party manufactured products	80,971		84,283		128,470		127,195
Other products and services	32,701		29,074		59,742		51,710
	$	331,249	$	319,875	$	551,615	$	516,464

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Capital Expenditures Incurred but Not yet Paid	$ 945	$ 1,289
Operating Activities
Net loss	43,460	56,957
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	19,927	21,267
Deferred income taxes	905	1,256
Provision for losses on accounts receivable	1,151	946
Amortization of deferred financing costs and premium on senior notes	1,805	1,874
Loss (gain) on sale or disposal of assets	3	18
Other non-cash charges	75	354
Changes in operating assets and liabilities:
Accounts receivable	(41,453)	(36,287)
Inventories	(21,253)	(46,526)
Accounts payable and accrued liabilities	42,651	30,511
Income taxes receivable / payable	(151)	(1,593)
Other assets and liabilities	819	(6,480)
Net cash used in operating activities	(38,679)	(88,431)
Investing Activities
Capital expenditures	(9,901)	(5,245)
Proceeds from sale of assets	8	7
Net cash (used in) provided by investing activities	(9,893)	(5,238)
Financing Activities
Borrowings under ABL facilities	99,731	121,242
Payments under ABL facilities	(53,053)	(41,128)
Net cash provided by (used in) financing activities	46,678	80,114
Effect of exchange rate changes on cash and cash equivalents	(40)	(417)
Net increase (decrease) in cash and cash equivalents	(1,934)	(13,972)
Cash and cash equivalents at beginning of period	5,963	20,815
Cash and cash equivalents at end of period	4,029	6,843
Supplemental information:
Cash paid for interest	39,772	38,636
Cash paid for income taxes	$ 1,777	$ 171

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(Long-Term Debt)

6 Months Ended

Jul. 04, 2015

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

Long-term debt consists of the following (in thousands):

	July 4, 2015		January 3, 2015
9.125% Senior Secured Notes due 2017	$	833,356	$	834,004
Borrowings under the ABL facilities	116,100		69,400
Total long-term debt	$	949,456	$	903,404

9.125% Senior Secured Notes due 2017

In October 2010, the Company and its wholly owned subsidiary, AMH New Finance, Inc. (collectively, the “Issuers”) issued and sold $730.0 million of 9.125% Senior Secured Notes due November 1, 2017 (the “existing notes”). The existing notes bear interest at a rate of 9.125% per annum, payable on May 1 and November 1 of each year, and are unconditionally guaranteed, jointly and severally, by each of the Issuers’ direct and indirect domestic subsidiaries that guarantees the Company’s obligations under its senior secured asset-based revolving credit facilities (the “ABL facilities”).

On May 1, 2013, the Issuers issued and sold an additional $100.0 million in aggregate principal amount of 9.125% Senior Secured Notes due November 1, 2017 (the “new notes” and, together with existing notes, the “9.125% notes”) at an issue price of 106.00% of the principal amount of the new notes in a private placement. The Company used the net proceeds of the offering to repay the outstanding borrowings under its ABL facilities and for other general corporate purposes. The new notes were issued as additional notes under the same indenture, dated as of October 13, 2010, governing the existing notes, as supplemented by a supplemental indenture (collectively, the “Indenture”). On October 31, 2013, all of the new notes were exchanged for 9.125% Senior Secured Notes due 2017, which have been registered under the Securities Act of 1933, as amended. The new notes are consolidated with and form a single class with the existing notes and have the same terms as to status, redemption, collateral and otherwise (other than issue date, issue price and first interest payment date) as the existing notes. The debt premium related to the issuance of the new notes is being amortized into interest expense over the life of the new notes. The unamortized premium of $3.4 million is included in the long-term debt balance for the 9.125% notes. The effective interest rate of the new notes, including the premium, is 7.5% as of July 4, 2015.

The 9.125% notes, at par value of $830.0 million, have an estimated fair value, classified as a Level 1 measurement, of $693.1 million and $652.8 million based on quoted market prices as of July 4, 2015 and January 3, 2015, respectively.

The Company may from time to time, in its sole discretion, purchase, redeem or retire the 9.125% notes in privately negotiated or open market transactions, by tender offer or otherwise.

ABL Facilities

In October 2010, the Company entered into the ABL facilities in the amount of$225.0 million (comprised of a $150.0 million U.S. facility and a $75.0 million Canadian facility) pursuant to a revolving credit agreement dated October 13, 2010, which was subsequently amended and restated on April 18, 2013 (the “Amended and Restated Revolving Credit Agreement”) to, among other things, extend the maturity date of the revolving credit agreement from October 13, 2015 to the earlier of (i) April 18, 2018 and (ii) 90 days prior to the maturity date of the existing notes. Subsequently, the Company terminated the tranche B revolving credit commitments of $12.0 million and wrote off $0.5 million of deferred financing fees related to the ABL facilities.

At the Company’s option, the U.S. and Canadian tranche A revolving credit loans under the Amended and Restated Revolving Credit Agreement governing the ABL facilities bear interest at the rate equal to (1) the London Interbank Offered Rate (“LIBOR”) (for eurodollar loans under the U.S. facility) or the Canadian Dealer Offered Rate (“CDOR”) (for loans under the Canadian facility), plus an applicable margin of 2.25% as of July 4, 2015, or (2) the alternate base rate (for alternate base rate loans under the U.S. facility, which is the highest of a prime rate, the Federal Funds Effective Rate plus 0.50% and a one-month LIBOR rate plus 1.0% per annum) or the alternate Canadian base rate (for loans under the Canadian facility, which is the higher of a Canadian prime rate and the 30-day CDOR plus 1.0%), plus an applicable margin of 1.25% as of July 4, 2015, in each case, which interest rate margin may vary in 25 basis point increments between three pricing levels determined by reference to the average excess availability in respect of the U.S. and Canadian tranche A revolving credit loans. In addition to paying interest on outstanding principal under the ABL facilities, the Company is required to pay a commitment fee in respect of the U.S. and Canadian tranche A revolving credit loans, payable quarterly in arrears, of 0.375%.

The Amended and Restated Revolving Credit Agreement contains customary representations and warranties and customary affirmative and negative covenants, including, with respect to negative covenants, among other things, restrictions on indebtedness, liens, investments, fundamental changes, asset sales, dividends and other distributions, prepayments or redemption of junior debt, transactions with affiliates and negative pledge clauses. There are no financial covenants included in the Amended and Restated Revolving Credit Agreement, other than a springing fixed charge coverage ratio of at least 1.00 to 1.00, which will be tested only when excess availability is less than the greater of (i) 10.0% of the sum of (x) the lesser of (A) the U.S. tranche A borrowing base and (B) the U.S. tranche A revolving credit commitments and (y) the lesser of (A) the Canadian tranche A borrowing base and (B) the Canadian tranche A revolving credit commitments and (ii) $20.0 million for a period of five consecutive business days until the 30th consecutive day when excess availability exceeds the above threshold.

On March 23, 2015, the Amended and Restated Revolving Credit Agreement was amended to permit, among other things, for the period commencing on and including April 3, 2015 through and including June 5, 2015, for the fixed charge coverage ratio to be tested or for a cash dominion period to commence only if excess availability is less than $15.0 million for a period of five consecutive business days. In addition, such amendment includes a provision for weekly borrowing base certificate reporting for the period commencing on and including April 12, 2015 through and including June 10, 2015 in lieu of delivery of a borrowing base certificate after each fiscal month.

The fixed charge coverage ratio was 0.50:1.00 for the four consecutive fiscal quarter test period ended July 4, 2015. The Company has not triggered such fixed charge coverage ratio covenant as of July 4, 2015, as excess availability of $44.3 million, as of such date was in excess of the covenant trigger threshold. The Company currently does not expect to trigger the fixed charge coverage ratio test for fiscal year 2015.

As of July 4, 2015, there was $116.1 million drawn under the Company’s ABL facilities and $64.3 million available for additional borrowings. The weighted average per annum interest rate applicable to borrowings under the U.S. portion and the Canadian portion of the ABL facilities was 2.6% and 4.5%, as of July 4, 2015. The Company had letters of credit outstanding of $12.4 million as of July 4, 2015 primarily securing insurance policy deductibles, certain lease facilities and the Company’s purchasing card program.

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Executive Officers' Separation and Hiring Costs

6 Months Ended

Jul. 04, 2015

Compensation Related Costs [Abstract]

Executive Officers' Separation and Hiring Costs

Executive Officers’ Separation and Hiring Costs

Separation and hiring costs related to the Company’s executive officers include payroll taxes, certain benefits and related professional fees, all of which are recorded as a component of selling, general and administrative expenses. For the quarter and six months ended July 4, 2015, the Company recorded $0.1 million of separation and hiring costs. For the quarter and six months ended June 28, 2014, the Company recorded $0.8 million and $2.8 million, respectively, of separation and hiring costs, primarily related to the resignations of Jerry W. Burris, the former President and Chief Executive Officer and David S. Nagle, the former Chief Operations Officer, AMI Distribution and Services, as well as the hiring of Dana R. Snyder as Interim Chief Executive Officer and the appointment of Brian C. Strauss as President and Chief Executive Officer in May 2014. As of July 4, 2015, the remaining balance payable to the Company’s former executives for separation costs was $0.4 million, which will be paid at various dates through 2016.

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jul. 04, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of goodwill

The changes in the carrying amount of goodwill are as follows (in thousands):

	Goodwill
Balance at January 3, 2015	$	317,257
Foreign currency translation	(6,063		)
Balance at July 4, 2015	$	311,194

Schedule of finite-lived intangibles and indefinite-lived intangibles

The Company’s other intangible assets consist of the following (in thousands):

	July 4, 2015						January 3, 2015
	Cost		Accumulated Amortization		Net Carrying Value		Cost		Accumulated Amortization		Net Carrying Value
Amortized customer bases	$	318,449	$	117,890	$	200,559	$	321,836	$	106,655	$	215,181
Amortized non-compete agreements	20		18		2		20		16		4
Total amortized intangible assets	318,469		117,908		200,561		321,856		106,671		215,185
Non-amortized trade names (1)	217,993		—		217,993		222,115		—		222,115
Total intangible assets	$	536,462	$	117,908	$	418,554	$	543,971	$	106,671	$	437,300

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Subsidiary Guarantors

6 Months Ended

Jul. 04, 2015

Condensed Financial Statements, Captions [Line Items]

Subsidiary Guarantors

Subsidiary Guarantors

The Company’s payment obligations under its 9.125% notes are fully and unconditionally guaranteed, jointly and severally, on a senior basis, by its domestic 100% owned subsidiaries, Gentek Holdings, LLC and Gentek Building Products, Inc. (together, the “Subsidiary Guarantors”). AMH New Finance, Inc. is a co-issuer of the 9.125% notes and is a domestic 100% owned subsidiary of the Company having no operations, revenues or cash flows for the periods presented.

Associated Materials Canada Limited, Gentek Canada Holdings Limited and Gentek Buildings Products Limited Partnership are Canadian companies and do not guarantee the 9.125% notes. In the opinion of management, separate financial statements of the respective Subsidiary Guarantors would not provide additional material information that would be useful in assessing the financial composition of the Subsidiary Guarantors.

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	3,194		$	—	$	—		$	835		$	—		$	4,029
Accounts receivable, net	123,256			—		9,151			31,508			—			163,915
Intercompany receivables	331,936			—		53,839			1,794			(387,569		)	—
Inventories	113,536			—		9,316			41,726			—			164,578
Income taxes receivable	68			—		67			—			—			135
Deferred income taxes	487			—		1,952			—			—			2,439
Prepaid expenses and other current assets	9,562			—		779			1,457			—			11,798
Total current assets	582,039			—		75,104			77,320			(387,569		)	346,894
Property, plant and equipment, net	66,136			—		1,353			27,300			—			94,789
Goodwill	203,841			—		16,713			90,640			—			311,194
Other intangible assets, net	295,121			—		32,858			90,575			—			418,554
Intercompany receivable	—			833,356		—			—			(833,356		)	—
Other assets	14,521			—		17			1,337			—			15,875
Total assets	$	1,161,658		$	833,356	$	126,045		$	287,172		$	(1,220,925	)	$	1,187,306
LIABILITIES AND MEMBER'S DEFICIT
Current liabilities:
Accounts payable	$	103,086		$	—	$	3,198		$	34,137		$	—		$	140,421
Intercompany payables	1,794			—		—			385,775			(387,569		)	—
Accrued liabilities	64,724			—		4,464			7,839			—			77,027
Deferred income taxes	905			—		—			1,211			—			2,116
Income taxes payable	—			—		—			1,779			—			1,779
Total current liabilities	170,509			—		7,662			430,741			(387,569		)	221,343
Deferred income taxes	51,012			—		13,295			22,551			—			86,858
Other liabilities	81,176			—		22,428			20,245			—			123,849
Deficit in subsidiaries	140,305			—		222,965			—			(363,270		)	—
Long-term debt	912,856			833,356		—			36,600			(833,356		)	949,456
Member’s deficit	(194,200		)	—		(140,305		)	(222,965		)	363,270			(194,200		)
Total liabilities and member’s deficit	$	1,161,658		$	833,356	$	126,045		$	287,172		$	(1,220,925	)	$	1,187,306

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For The Quarter Ended July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	262,272		$	—	$	42,578		$	77,477		$	(51,078	)	$	331,249
Cost of sales	201,659			—		41,001			58,652			(51,078		)	250,234
Gross profit	60,613			—		1,577			18,825			—			81,015
Selling, general and administrative expenses	49,194			—		2,526			10,446			—			62,166
Income (loss) from operations	11,419			—		(949		)	8,379			—			18,849
Interest expense, net	19,276			—		1,662			218			—			21,156
Foreign currency loss	—			—		—			601			—			601
(Loss) income before income taxes	(7,857		)	—		(2,611		)	7,560			—			(2,908		)
Income tax expense	179			—		53			1,998			—			2,230
(Loss) income before equity income from subsidiaries	(8,036		)	—		(2,664		)	5,562			—			(5,138		)
Equity income from subsidiaries	2,898			—		5,562			—			(8,460		)	—
Net (loss) income	(5,138		)	—		2,898			5,562			(8,460		)	(5,138		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	151			—		60			50			(110		)	151
Foreign currency translation adjustments, net of tax	(1,379		)	—		(1,379		)	(1,379		)	2,758			(1,379		)
Total comprehensive (loss) income	$	(6,366	)	$	—	$	1,579		$	4,233		$	(5,812	)	$	(6,366	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Six Months Ended July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	441,910		$	—	$	72,740		$	124,725		$	(87,760	)	$	551,615
Cost of sales	350,626			—		69,807			96,024			(87,760		)	428,697
Gross profit	91,284			—		2,933			28,701			—			122,918
Selling, general and administrative expenses	96,851			—		3,370			20,415			—			120,636
(Loss) income from operations	(5,567		)	—		(437		)	8,286			—			2,282
Interest expense, net	38,064			—		3,323			475			—			41,862
Foreign currency loss	—			—		—			1,117			—			1,117
(Loss) income before income taxes	(43,631		)	—		(3,760		)	6,694			—			(40,697		)
Income tax expense	905			—		77			1,781			—			2,763
(Loss) income before equity income from subsidiaries	(44,536		)	—		(3,837		)	4,913			—			(43,460		)
Equity income from subsidiaries	1,076			—		4,913			—			(5,989		)	—
Net (loss) income	(43,460		)	—		1,076			4,913			(5,989		)	(43,460		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	299			—		118			98			(216		)	299
Foreign currency translation adjustments, net of tax	(12,965		)	—		(12,965		)	(12,965		)	25,930			(12,965		)
Total comprehensive loss	$	(56,126	)	$	—	$	(11,771	)	$	(7,954	)	$	19,725		$	(56,126	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For the Six Months Ended July 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(33,721	)	$	—	$	6,787		$	(11,745	)	$	—		$	(38,679	)
INVESTING ACTIVITIES
Capital expenditures	(8,731		)	—		(81		)	(1,089		)	—			(9,901		)
Proceeds from the sale of assets	7			—		—			1			—			8
Payments on loans to affiliates	—			—		(6,706		)	(25,000		)	31,706			—
Receipts on loans to affiliates	2,000			—		—			7,500			(9,500		)	—
Net cash used in investing activities	(6,724		)	—		(6,787		)	(18,588		)	22,206			(9,893		)
FINANCING ACTIVITIES
Borrowings under ABL facilities	48,200			—		—			51,531			—			99,731
Payments under ABL facilities	(34,700		)	—		—			(18,353		)	—			(53,053		)
Borrowings from affiliates	31,706			—		—			—			(31,706		)	—
Repayments to affiliates	(7,500		)	—		—			(2,000		)	9,500			—
Net cash provided by financing activities	37,706			—		—			31,178			(22,206		)	46,678
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(40		)	—			(40		)
Net (decrease) increase in cash and cash equivalents	(2,739		)	—		—			805			—			(1,934		)
Cash and cash equivalents at beginning of period	5,933			—		—			30			—			5,963
Cash and cash equivalents at end of period	$	3,194		$	—	$	—		$	835		$	—		$	4,029

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

January 3, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	5,933		$	—	$	—		$	30		$	—		$	5,963
Accounts receivable, net	98,945			—		6,411			19,765			—			125,121
Intercompany receivables	356,421			—		61,740			1,794			(419,955		)	—
Inventories	100,487			—		10,969			34,076			—			145,532
Income taxes receivable	—			—		144			—			—			144
Deferred income taxes	487			—		1,952			—			—			2,439
Prepaid expenses and other current assets	13,422			—		996			1,441			—			15,859
Total current assets	575,695			—		82,212			57,106			(419,955		)	295,058
Property, plant and equipment, net	62,977			—		1,474			29,449			—			93,900
Goodwill	203,841			—		16,713			96,703			—			317,257
Other intangible assets, net	305,127			—		33,084			99,089			—			437,300
Intercompany receivable	—			834,004		—			—			(834,004		)	—
Other assets	17,246			—		45			1,371			—			18,662
Total assets	$	1,164,886		$	834,004	$	133,528		$	283,718		$	(1,253,959	)	$	1,162,177
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	67,160		$	—	$	6,679		$	20,929		$	—		$	94,768
Intercompany payables	1,794			—		—			418,161			(419,955		)	—
Accrued liabilities	70,439			—		4,683			6,612			—			81,734
Deferred income taxes	—			—		—			1,292			—			1,292
Income taxes payable	46			—		—			1,736			—			1,782
Total current liabilities	139,439			—		11,362			448,730			(419,955		)	179,576
Deferred income taxes	51,012			—		13,295			24,023			—			88,330
Other liabilities	84,048			—		22,395			22,573			—			129,016
Deficit in subsidiaries	128,532			—		215,008			—			(343,540		)	—
Long-term debt	900,004			834,004		—			3,400			(834,004		)	903,404
Member’s deficit	(138,149		)	—		(128,532		)	(215,008		)	343,540			(138,149		)
Total liabilities and member’s deficit	$	1,164,886		$	834,004	$	133,528		$	283,718		$	(1,253,959	)	$	1,162,177

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For The Quarter Ended June 28, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries		Reclassification/ Eliminations			Consolidated
Net sales	$	251,215		$	—	$	45,778		$	79,125	$	(56,243	)	$	319,875
Cost of sales	201,020			—		42,595			60,490		(56,243		)	247,862
Gross profit	50,195			—		3,183			18,635		—			72,013
Selling, general and administrative expenses	48,100			—		1,104			11,062		—			60,266
Income from operations	2,095			—		2,079			7,573		—			11,747
Interest expense, net	20,292			—		—			467		—			20,759
Foreign currency loss	—			—		—			278		—			278
(Loss) income before income taxes	(18,197		)	—		2,079			6,828		—			(9,290		)
Income tax (benefit) expense	(378		)	—		(36		)	1,732		—			1,318
(Loss) income before equity income from subsidiaries	(17,819		)	—		2,115			5,096		—			(10,608		)
Equity income from subsidiaries	7,211			—		5,096			—		(12,307		)	—
Net (loss) income	(10,608		)	—		7,211			5,096		(12,307		)	(10,608		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	5			—		13			14		(27		)	5
Foreign currency translation adjustments, net of tax	10,211			—		10,211			10,211		(20,422		)	10,211
Total comprehensive (loss) income	$	(392	)	$	—	$	17,435		$	15,321	$	(32,756	)	$	(392	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME

For The Six Months Ended June 28, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries		Reclassification/ Eliminations			Consolidated
Net sales	$	408,154		$	—	$	76,440		$	123,819	$	(91,949	)	$	516,464
Cost of sales	335,338			—		71,545			95,102		(91,949		)	410,036
Gross profit	72,816			—		4,895			28,717		—			106,428
Selling, general and administrative expenses	95,899			—		2,046			20,986		—			118,931
(Loss) income from operations	(23,083		)	—		2,849			7,731		—			(12,503		)
Interest expense, net	40,264			—		1			814		—			41,079
Foreign currency loss	—			—		—			616		—			616
(Loss) income before income taxes	(63,347		)	—		2,848			6,301		—			(54,198		)
Income tax expense (benefit)	1,256			—		(63		)	1,566		—			2,759
(Loss) income before equity income from subsidiaries	(64,603		)	—		2,911			4,735		—			(56,957		)
Equity income from subsidiaries	7,646			—		4,735			—		(12,381		)	—
Net (loss) income	(56,957		)	—		7,646			4,735		(12,381		)	(56,957		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	8			—		25			28		(53		)	8
Foreign currency translation adjustments, net of tax	1,157			—		1,157			1,157		(2,314		)	1,157
Total comprehensive (loss) income	$	(55,792	)	$	—	$	8,828		$	5,920	$	(14,748	)	$	(55,792	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Six Months EndedJune 28, 2014

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(76,034	)	$	—	$	5,938		$	(18,335	)	$	—		$	(88,431	)
INVESTING ACTIVITIES
Capital expenditures	(4,528		)	—		(249		)	(468		)	—			(5,245		)
Proceeds from the sale of assets	5			—		—			2			—			7
Payments on loans to affiliates	—			—		(5,689		)	—			5,689			—
Net cash used in investing activities	(4,523		)	—		(5,938		)	(466		)	5,689			(5,238		)
FINANCING ACTIVITIES
Borrowings under ABL facilities	94,700			—		—			26,542			—			121,242
Payments under ABL facilities	(20,700		)	—		—			(20,428		)	—			(41,128		)
Borrowings from affiliates	5,689			—		—			—			(5,689		)	—
Net cash provided by financing activities	79,689			—		—			6,114			(5,689		)	80,114
Effect of exchange rate changes on cash and cash equivalents	—			—		—			(417		)	—			(417		)
Net decrease in cash and cash equivalents	(868		)	—		—			(13,104		)	—			(13,972		)
Cash and cash equivalents at beginning of period	7,566			—		—			13,249			—			20,815
Cash and cash equivalents at end of period	$	6,698		$	—	$	—		$	145		$	—		$	6,843

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Stock Plans (Notes)

6 Months Ended

Jul. 04, 2015

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

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

Stock Plans

In April 2015, the board of directors of Associated Materials Group, Inc. (“Parent”) and Parent’s stockholders approved an amendment and restatement to the Parent’s 2010 Stock Incentive Plan (“2010 Plan”) to increase the maximum number of shares which may be issued under the 2010 Plan by 1,500,000 from 7,550,076 to 9,050,076 shares of Parent common stock.

In June 2015, Parent’s board of directors modified certain time-based and performance-based options held by eligible participants to reduce the exercise price of such options. The number of options repriced was 4.5 million to 17 employees under the senior leadership team, with a weighted average exercise price prior to repricing of $9.23 and an average remaining contractual life of 8.8 years. The compensation cost related to this repricing resulted in additional unrecognized non-cash expense of $0.3 million that may be recognized over the remaining life of the options, subject to vesting conditions.

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Income Taxes

6 Months Ended

Jul. 04, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure

Income Taxes

The Company’s provision for income taxes in interim periods is computed by applying the appropriate estimated annual effective tax rates to income or loss before income taxes for the period. The Company adjusts its effective tax rate each quarter to be consistent with the estimated annual effective tax rate and records the tax impact of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and effects of changes in tax laws or rates, in the interim period in which they occur.

The components of the effective tax rate are as follows (in thousands, except percentage):

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Loss before income taxes	$	(2,908	)	$	(9,290	)	$	(40,697	)	$	(54,198	)
Income tax expense	2,230			1,318			2,763			2,759
Effective tax rate	(76.7		)%	(14.2		)%	(6.8		)%	(5.1		)%

The effective tax rates for the quarters and six months ended July 4, 2015 and June 28, 2014 vary from the statutory rate, primarily as a result of operating losses in the U.S. with no tax benefit recognized due to the valuation allowance against net U.S. deferred tax assets, and income tax expense on foreign income.

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Accumulated Other Comprehensive Loss

6 Months Ended

Jul. 04, 2015

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component, net of tax, for the six months ended July 4, 2015 and June 28, 2014, respectively, are as follows (in thousands):

	Defined Benefit Pension and Other Postretirement Plans			Foreign Currency Translation			Accumulated Other Comprehensive Loss
Balance at January 3, 2015	$	(23,781	)	$	(36,842	)	$	(60,623	)
Other comprehensive loss before reclassifications, net of tax of $0	—			(12,965		)	(12,965		)
Amounts reclassified from accumulated other comprehensive loss, net of tax of $31	299			—			299
Balance at July 4, 2015	$	(23,482	)	$	(49,807	)	$	(73,289	)

	Defined Benefit Pension and Other Postretirement Plans			Foreign Currency Translation			Accumulated Other Comprehensive Loss
Balance at December 28, 2013	$	(3,513	)	$	(14,403	)	$	(17,916	)
Other comprehensive income before reclassifications, net of tax of $0	—			1,157			1,157
Amounts reclassified from accumulated other comprehensive loss, net of tax of $10	8			—			8
Balance at June 28, 2014	$	(3,505	)	$	(13,246	)	$	(16,751	)

Reclassifications out of accumulated other comprehensive loss for the quarters and six months ended July 4, 2015 and June 28, 2014, respectively, consist of the following (in thousands):

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Defined Benefit Pension and Other Postretirement Plans:
Amortization of unrecognized prior service costs	$	6		$	6		$	13		$	12
Amortization of unrecognized cumulative actuarial net loss	159			3			317			6
Total before tax	165			9			330			18
Tax expense	(14		)	(4		)	(31		)	(10		)
Net of tax	$	151		$	5		$	299		$	8

Amortization of prior service costs and actuarial losses are included in the computation of net periodic benefit cost for the Company’s pension and other postretirement benefit plans.

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(Retirement Plans)

6 Months Ended

Jul. 04, 2015

Compensation and Retirement Disclosure [Abstract]

Retirement Plans

Retirement Plans

The Company sponsors defined benefit pension plans that cover hourly workers at its West Salem, Ohio plant, and hourly union employees at its Woodbridge, New Jersey plant, as well as a defined benefit retirement plan covering U.S. salaried employees, which was frozen in 1998 and subsequently replaced with a defined contribution plan (such plans collectively, the “Domestic Plans”). The Company also sponsors a defined benefit pension plan covering the Canadian salaried employees and hourly union employees at the Lambeth, Ontario plant, a defined benefit pension plan for the hourly union employees at its Burlington, Ontario plant and a defined benefit pension plan for the hourly union employees at its Pointe Claire, Quebec plant (such plans collectively, the “Foreign Plans”). In 2014, the pension plans for Pointe Claire and Burlington were amended to reflect an increase in benefits, effective November 15, 2015 and September 1, 2016, respectively. Also, the Pointe Claire plan was amended to disallow a lump sum payment feature that triggered settlement losses recorded in previous years.

The Company also provides postretirement benefits other than pension (“OPEB Plans”) including health care or life insurance benefits to certain U.S. and Canadian retirees and in some cases, their spouses and dependents. The Company’s postretirement benefit plans in the U.S. include an unfunded health care plan for hourly workers at the Company’s former steel siding plant in Cuyahoga Falls, Ohio. With the closure of this facility in 1991, no additional employees are eligible to participate in this plan. There are three other U.S. unfunded plans covering either life insurance or health care benefits for small frozen groups of retirees. The Company’s foreign postretirement benefit plan provides life insurance benefits to active members at its Pointe Claire, Quebec plant and a closed group of Canadian salaried retirees. The actuarial valuation measurement date for the defined benefit pension plans and postretirement benefits other than pension is December 31.

Components of net periodic benefit cost for the Company’s Domestic Plans, Foreign Plans and OPEB Plans are as follows (in thousands):

	Quarters Ended
	July 4, 2015									June 28, 2014
	Domestic Plans			Foreign Plans			OPEB Plans			Domestic Plans			Foreign Plans			OPEB Plans
Service cost	$	331		$	649		$	2		$	323		$	606		$	3
Interest cost	806			802			44			788			924			49
Expected return on assets	(973		)	(952		)	—			(1,018		)	(1,095		)	—
Amortization of unrecognized:
Prior service costs (credits)	3			5			(2		)	3			5			(2		)
Cumulative actuarial net loss (gains)	104			60			(5		)	—			14			(11		)
Net periodic benefit cost	$	271		$	564		$	39		$	96		$	454		$	39

	Six Months Ended
	July 4, 2015									June 28, 2014
	Domestic Plans			Foreign Plans			OPEB Plans			Domestic Plans			Foreign Plans			OPEB Plans
Service cost	$	662		$	1,290		$	6		$	645		$	1,197		$	6
Interest cost	1,612			1,593			87			1,576			1,827			98
Expected return on assets	(1,946		)	(1,890		)	—			(2,036		)	(2,164		)	—
Amortization of unrecognized:
Prior service costs (credits)	6			11			(4		)	6			10			(4		)
Cumulative actuarial net loss (gains)	208			119			(10		)	—			28			(22		)
Net periodic benefit cost	$	542		$	1,123		$	79		$	191		$	898		$	78

Although changes in market conditions, current pension law and uncertainties regarding significant assumptions used in the actuarial valuations may have a material impact on future required contributions to the Company’s pension plans, the Company currently does not expect funding requirements to have a material adverse impact on current or future liquidity.

The actuarial valuations require significant estimates and assumptions to be made by management, primarily the funding interest rate, discount rate and expected long-term return on plan assets. These assumptions are all susceptible to changes in market conditions. The funding interest rate and discount rate are based on representative bond yield curves maintained and monitored by independent third parties. In determining the expected long-term rate of return on plan assets, the Company considers historical market and portfolio rates of return, asset allocations and expectations of future rates of return.

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Inventories (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Inventory, Net [Abstract]
Raw materials	$ 36,895	$ 29,300
Work-in-progress	13,317	16,442
Finished goods	114,366	99,790
Inventory, net	$ 164,578	$ 145,532

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Business Segments Textual (Details)	6 Months Ended
	Jul. 04, 2015
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]
Number of Operating Segments	1
Number of Reportable Segments	1

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Allowance for Doubtful Accounts (Tables)

6 Months Ended

Jul. 04, 2015

Allowance for Doubtful Accounts [Abstract]

Allowance for doubtful accounts

Allowance for doubtful accounts on accounts receivable consists of the following (in thousands):

	July 4, 2015		January 3, 2015
Allowance for doubtful accounts, current	$	3,564	$	3,542
Allowance for doubtful accounts, non-current	4,682		4,549
	$	8,246	$	8,091

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Long-Term Debt (Tables)

6 Months Ended

Jul. 04, 2015

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

Long-term debt consists of the following (in thousands):

	July 4, 2015		January 3, 2015
9.125% Senior Secured Notes due 2017	$	833,356	$	834,004
Borrowings under the ABL facilities	116,100		69,400
Total long-term debt	$	949,456	$	903,404

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Commitments and Contingencies (Details) - Environmental Issue [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Jul. 04, 2015	Jan. 03, 2015
Loss Contingencies [Line Items]
Environmental Remediation Funding	$ 0.1
Letters of Credit Outstanding, Amount		$ 0.3
Accrual for Environmental Loss Contingencies, Gross			$ 1.0

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Long-Term Debt (Tables)(Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Debt Instrument [Line Items]
Total long-term debt	$ 949,456	$ 903,404
Line of credit
Debt Instrument [Line Items]
Borrowings under the ABL facilities	116,100	69,400
9.125% notes | Senior notes
Debt Instrument [Line Items]
9.125% notes	$ 833,356	$ 834,004

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Basis of Presentation

6 Months Ended

Jul. 04, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

Associated Materials, LLC (the “Company”) is a 100% owned subsidiary of Associated Materials Incorporated, formerly known as AMH Intermediate Holdings Corp. (“Holdings”). Holdings is a wholly owned subsidiary of Associated Materials Group, Inc., formerly known as AMH Investment Holdings Corp. (“Parent”), which is controlled by investment funds affiliated with Hellman & Friedman LLC (“H&F”). Holdings and Parent do not have material assets or operations other than their direct and indirect ownership, respectively, of the membership interests of the Company. Approximately 97% of the capital stock of Parent is owned by investment funds affiliated with H&F.

The condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting, the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these interim condensed consolidated financial statements contain all of the normal recurring accruals and adjustments considered necessary for a fair presentation of the unaudited results for the quarters and six months ended July 4, 2015 and June 28, 2014. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended January 3, 2015, filed with the Securities and Exchange Commission (“SEC”) on March 23, 2015 (“Annual Report”). A detailed description of the Company’s significant accounting policies and management judgments is located in the audited financial statements included in its Annual Report.

The Company is a leading, vertically integrated manufacturer and distributor of exterior residential building products in the United States (“U.S.”) and Canada. The Company was founded in 1947 when it first introduced residential aluminum siding under the Alside^® name. The Company offers a comprehensive range of exterior building products, including vinyl windows, vinyl siding, aluminum trim coil, aluminum and steel siding and related accessories, which are produced at the Company’s 11 manufacturing facilities. The Company also sells complementary products that it sources from a network of manufacturers, such as roofing materials, cladding materials, insulation, exterior doors, equipment and tools. The Company also provides installation services. The Company distributes these products through its extensive dual-distribution network to over 50,000 professional exterior contractors, builders and dealers, whom the Company refers to as its “contractor customers.” This dual-distribution network consists of 124 company-operated supply centers, through which the Company sells directly to its contractor customers, and its direct sales channel, through which the Company sells to more than 275 independent distributors, dealers and national account customers.

Because most of the Company’s building products are intended for exterior use, sales and operating profits tend to be lower during periods of inclement weather. Weather conditions in the first quarter of each calendar year usually result in that quarter producing significantly less net sales and net cash flows from operations than in any other period of the year. Consequently, the Company has historically had losses or small profits in the first quarter and lower profits from operations in the fourth quarter of each calendar year. Therefore, the results of operations for any interim period are not necessarily indicative of the results of operations for a full fiscal year.

Certain items previously reported in specific financial statement captions have been reclassified to conform to the fiscal 2015 presentation.

Recent Accounting Pronouncements

In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value (“NRV”). The new guidance eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin) under the current lower of cost or market guidance. ASU 2015-11 applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. It is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2016. The Company does not believe that the adoption of the provisions of ASU 2015-11 will have a material impact on its consolidated financial position, results of operations or cash flows.

In May 2015, the FASB issued ASU No. 2015-07, Disclosure for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (“ASU 2015-07”). ASU 2015-07 eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The new guidance requires an entity to disclose the fair value of investments measured using the net asset value practical expedient so that the financial statement user can reconcile amounts reported in the fair value hierarchy table to amounts reported on the balance sheet. ASU 2015-07 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. The Company does not believe that the adoption of the provisions of ASU 2015-07 will have a material impact on its consolidated financial position, results of operations or cash flows.

In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”). ASU 2015-05 provides guidance on determining whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software. If the arrangement contains a software license, then the customer should account for the fees related to the software license element consistent with the acquisition of other software licenses. If the arrangement does not contain a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. An entity may apply the guidance retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. The Company does not believe that the adoption of the provisions of ASU 2015-05 will have a material impact on its consolidated financial position, results of operations or cash flows.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than an asset, consistent with the presentation of debt discounts. The recognition and measurement of debt issuance costs are not affected by the new guidance. ASU 2015-03 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. An entity is required to apply ASU 2015-03 on a retrospective basis and comply with the applicable disclosures, which include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (that is, the debt issuance cost asset and the debt liability). The Company does not believe that the adoption of the provisions of ASU 2015-03 will have a material impact on its consolidated financial position, results of operations or cash flows.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued and to provide certain disclosures if it concludes that substantial doubt exists. ASU 2014-15 is effective for all entities for the annual period ending after December 15, 2016, and for annual and interim periods thereafter, with early adoption permitted. The Company does not believe that the adoption of the provisions of ASU 2014-15 will have a material impact on its consolidated financial position, results of operations or cash flows.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The comprehensive new revenue recognition standard supersedes all existing revenue guidance under GAAP and international financial reporting standards. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard establishes the following five steps that require companies to exercise judgment when considering the terms of any contract, including all relevant facts and circumstances:

Step 1: Identify the contract(s) with the customer,

Step 2: Identify the separate performance obligations in the contract,

Step 3: Determine the transaction price,

Step 4: Allocate the transaction price to the separate performance obligations, and

Step 5: Recognize revenue when each performance obligation is satisfied.

The new standard also requires significantly more interim and annual disclosures. The new standard allows for either full retrospective or modified retrospective adoption. ASU 2014-09 is effective for fiscal years and interim periods within those years, beginning after December 15, 2016. In July 2015, the FASB confirmed its decision to defer the effective date of the new revenue standard by one year. The Company is currently assessing the potential impact of the new requirements under the standard.

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(Product Warranty Costs)

6 Months Ended

Jul. 04, 2015

Standard Product Warranty Disclosure [Abstract]

Product Warranty Costs

Product Warranty Costs

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

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

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Balance at the beginning of the period	$	89,246		$	92,638		$	89,940		$	93,207
Provision for warranties issued and changes in estimates for pre-existing warranties	1,457			1,547			2,707			2,826
Claims paid	(1,735		)	(1,728		)	(3,063		)	(3,188		)
Foreign currency translation	(67		)	434			(683		)	46
Balance at the end of the period	$	88,901		$	92,891		$	88,901		$	92,891

On February 13, 2013, the Company entered into a Settlement Agreement and Release of Claims (the “Settlement”) for a class action lawsuit filed by plaintiffs and a putative nationwide class of homeowners regarding certain warranty-related claims for steel and aluminum siding, which became effective on September 2, 2013. The Company expects to incur additional warranty costs associated with the Settlement; however, the Company does not believe the incremental costs, which currently cannot be estimated for recognition purposes, have been or will be material.

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Income Taxes (Tables)

6 Months Ended

Jul. 04, 2015

Effective Income Tax Rate [Line Items]

Schedule of components of income tax expense (benefit)

The components of the effective tax rate are as follows (in thousands, except percentage):

	Quarters Ended						Six Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Loss before income taxes	$	(2,908	)	$	(9,290	)	$	(40,697	)	$	(54,198	)
Income tax expense	2,230			1,318			2,763			2,759
Effective tax rate	(76.7		)%	(14.2		)%	(6.8		)%	(5.1		)%

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Manufacturing Restructuring Costs (Details) - Facility Closing [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Restructuring Reserve [RollForward]
Balance at the beginning of the period	$ 1,710	$ 2,166	$ 1,960	$ 2,772
Restructuring Reserve, Accrual Adjustment	0	0	0	(331)
Accretion of related lease obligations	38	128	152	252
Payments	(121)	(185)	(485)	(584)
Balance at the end of the period	$ 1,627	$ 2,109	$ 1,627	$ 2,109

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Basis of Presentation Significant Accounting Policies (Policies)

6 Months Ended

Jul. 04, 2015

Accounting Policies [Abstract]

Basis of Accounting, Policy

The condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial reporting, the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, these interim condensed consolidated financial statements contain all of the normal recurring accruals and adjustments considered necessary for a fair presentation of the unaudited results for the quarters and six months ended July 4, 2015 and June 28, 2014. These financial statements should be read in conjunction with the Company’s audited financial statements and notes thereto included in its Annual Report on Form 10-K for the year ended January 3, 2015, filed with the Securities and Exchange Commission (“SEC”) on March 23, 2015 (“Annual Report”). A detailed description of the Company’s significant accounting policies and management judgments is located in the audited financial statements included in its Annual Report.

New Accounting Pronouncements, Policy

Recent Accounting Pronouncements

In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11”). ASU 2015-11 simplifies the subsequent measurement of inventory by requiring inventory to be measured at the lower of cost and net realizable value (“NRV”). The new guidance eliminates the need to determine replacement cost and evaluate whether it is above the ceiling (NRV) or below the floor (NRV less a normal profit margin) under the current lower of cost or market guidance. ASU 2015-11 applies only to inventories for which cost is determined by methods other than last-in first-out and the retail inventory method. It is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2016. The Company does not believe that the adoption of the provisions of ASU 2015-11 will have a material impact on its consolidated financial position, results of operations or cash flows.

In May 2015, the FASB issued ASU No. 2015-07, Disclosure for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) (“ASU 2015-07”). ASU 2015-07 eliminates the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. The new guidance requires an entity to disclose the fair value of investments measured using the net asset value practical expedient so that the financial statement user can reconcile amounts reported in the fair value hierarchy table to amounts reported on the balance sheet. ASU 2015-07 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. The Company does not believe that the adoption of the provisions of ASU 2015-07 will have a material impact on its consolidated financial position, results of operations or cash flows.

In April 2015, the FASB issued ASU No. 2015-05, Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”). ASU 2015-05 provides guidance on determining whether a cloud computing arrangement contains a software license that should be accounted for as internal-use software. If the arrangement contains a software license, then the customer should account for the fees related to the software license element consistent with the acquisition of other software licenses. If the arrangement does not contain a software license, the customer should account for the arrangement as a service contract. ASU 2015-05 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. An entity may apply the guidance retrospectively or prospectively to arrangements entered into, or materially modified, after the effective date. The Company does not believe that the adoption of the provisions of ASU 2015-05 will have a material impact on its consolidated financial position, results of operations or cash flows.

In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability rather than an asset, consistent with the presentation of debt discounts. The recognition and measurement of debt issuance costs are not affected by the new guidance. ASU 2015-03 is effective for public entities for fiscal years and interim periods within those years, beginning after December 15, 2015. An entity is required to apply ASU 2015-03 on a retrospective basis and comply with the applicable disclosures, which include the nature of and reason for the change in accounting principle, the transition method, a description of the prior-period information that has been retrospectively adjusted, and the effect of the change on the financial statement line items (that is, the debt issuance cost asset and the debt liability). The Company does not believe that the adoption of the provisions of ASU 2015-03 will have a material impact on its consolidated financial position, results of operations or cash flows.

In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern (“ASU 2014-15”). ASU 2014-15 requires management to evaluate, in connection with preparing financial statements for each annual and interim reporting period, whether there are conditions or events, considered in the aggregate, that raise substantial doubt about an entity’s ability to continue as a going concern within one year after the date that the financial statements are issued and to provide certain disclosures if it concludes that substantial doubt exists. ASU 2014-15 is effective for all entities for the annual period ending after December 15, 2016, and for annual and interim periods thereafter, with early adoption permitted. The Company does not believe that the adoption of the provisions of ASU 2014-15 will have a material impact on its consolidated financial position, results of operations or cash flows.

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The comprehensive new revenue recognition standard supersedes all existing revenue guidance under GAAP and international financial reporting standards. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The standard establishes the following five steps that require companies to exercise judgment when considering the terms of any contract, including all relevant facts and circumstances:

Step 1: Identify the contract(s) with the customer,

Step 2: Identify the separate performance obligations in the contract,

Step 3: Determine the transaction price,

Step 4: Allocate the transaction price to the separate performance obligations, and

Step 5: Recognize revenue when each performance obligation is satisfied.

The new standard also requires significantly more interim and annual disclosures. The new standard allows for either full retrospective or modified retrospective adoption. ASU 2014-09 is effective for fiscal years and interim periods within those years, beginning after December 15, 2016. In July 2015, the FASB confirmed its decision to defer the effective date of the new revenue standard by one year. The Company is currently assessing the potential impact of the new requirements under the standard.