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 April 2, 2016

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 May 3, 2016, all of the registrant’s membership interests outstanding were held by an affiliate of the registrant.

ASSOCIATED MATERIALS, LLC

Report for the Quarter ended April 2, 2016

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Balance Sheets April 2, 2016 and January 2, 2016	1
	Condensed Consolidated Statements of Comprehensive Loss Quarters ended April 2, 2016 and April 4, 2015	2
	Condensed Consolidated Statements of Cash Flows Quarters ended April 2, 2016 and April 4, 2015	3
	Notes to Condensed Consolidated Financial Statements	4
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 6.	Exhibits	35
SIGNATURES		36

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ASSOCIATED MATERIALS, LLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited, in thousands)

	April 2, 2016			January 2, 2016
Assets
Current assets:
Cash and cash equivalents	$	6,071		$	9,394
Accounts receivable, net	131,066			127,043
Inventories	133,313			123,374
Income taxes receivable	1,724			1,612
Deferred income taxes	1,502			1,502
Prepaid expenses and other current assets	14,887			14,163
Total current assets	288,563			277,088
Property, plant and equipment, at cost	190,263			186,495
Less accumulated depreciation	99,883			95,701
Property, plant and equipment, net	90,380			90,794
Goodwill	308,139			302,908
Other intangible assets, net	396,823			397,953
Other assets	4,538			4,593
Total assets	$	1,088,443		$	1,073,336
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	97,540		$	91,563
Accrued liabilities	92,353			83,630
Deferred income taxes	1,231			436
Income taxes payable	419			36
Total current liabilities	191,543			175,665
Deferred income taxes	83,390			82,102
Other liabilities	113,310			113,123
Long-term debt	931,495			916,807
Commitments and contingencies
Member’s deficit	(231,295		)	(214,361		)
Total liabilities and member’s deficit	$	1,088,443		$	1,073,336

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
	April 2, 2016			April 4, 2015
Net sales	$	236,281		$	220,366
Cost of sales	183,228			178,463
Gross profit	53,053			41,903
Selling, general and administrative expenses	59,433			58,470
Loss from operations	(6,380		)	(16,567		)
Interest expense	20,883			20,706
Foreign currency (gain) loss	(383		)	516
Loss before income taxes	(26,880		)	(37,789		)
Income tax expense	1,132			533
Net loss	(28,012		)	(38,322		)
Other comprehensive (loss) income:
Pension and other postretirement benefit adjustments, net of tax	17			148
Foreign currency translation adjustments, net of tax	11,018			(11,586		)
Total comprehensive loss	$	(16,977	)	$	(49,760	)

See accompanying notes to Condensed Consolidated Financial Statements.

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ASSOCIATED MATERIALS, LLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited, in thousands)

	Quarters Ended
	April 2, 2016			April 4, 2015
Operating Activities
Net loss	$	(28,012	)	$	(38,322	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	9,806			9,879
Deferred income taxes	767			727
Provision for losses on accounts receivable	682			771
Amortization of deferred financing costs and premium on senior notes	914			906
Gain on sale of assets	(11		)	—
Stock-based compensation expense	43			25
Changes in operating assets and liabilities:
Accounts receivable	(3,640		)	(2,141		)
Inventories	(7,869		)	(17,839		)
Accounts payable and accrued liabilities	13,296			20,729
Income taxes receivable / payable	350			(164		)
Other assets and liabilities	(1,554		)	(1,242		)
Net cash used in operating activities	(15,228		)	(26,671		)
Investing Activities
Capital expenditures	(1,975		)	(6,069		)
Proceeds from the sale of assets	86			6
Net cash used in investing activities	(1,889		)	(6,063		)
Financing Activities
Borrowings under ABL facilities	38,789			44,570
Payments under ABL facilities	(50,900		)	(13,749		)
Promissory note proceeds	27,500			—
Financing costs	(1,624		)	—
Net cash provided by financing activities	13,765			30,821
Effect of exchange rate changes on cash and cash equivalents	29			9
Net decrease in cash and cash equivalents	(3,323		)	(1,904		)
Cash and cash equivalents at beginning of period	9,394			5,963
Cash and cash equivalents at end of period	$	6,071		$	4,059
Supplemental information:
Cash paid for interest	$	1,080		$	952
Cash paid for income taxes	$	3		$	44
Property additions of $211 thousand and $733 thousand that remain unpaid as of April 2, 2016 and April 4, 2015, 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 ENDED APRIL 2, 2016

(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 interest 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 ended April 2, 2016 and April 4, 2015. 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 2, 2016, filed with the Securities and Exchange Commission (“SEC”) on March 22, 2016 (“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 provides a comprehensive offering 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 122 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 year.

Adopted Accounting Pronouncements

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. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”). ASU 2015-15 provides that, given the absence of authoritative guidance in ASU 2015-03 with respect to presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, an entity is permitted to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. During fiscal 2016, ASU 2015-03 and ASU 2015-05 became effective and accordingly, debt issuance costs of $8.7 million were reclassified from other assets to long-term debt on the January 2, 2016 Condensed Consolidated Balance Sheet

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Recent Accounting Pronouncements

In March 2016, the FASB issued a modified standard on stock compensation. This standard makes several modifications to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. It also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective commencing with our 2017 fiscal year and requires enhanced disclosures. The Company is currently assessing the potential impact of the new requirements under the standard

In February 2016, the FASB issued a new standard on leases. The new standard requires lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by finance and operating leases with lease terms of more than 12 months. The amendment is effective commencing with our 2019 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance.

In November 2015, the FASB issued guidance that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet. The guidance is effective in 2017 with early adoption permitted. The guidance is not expected to have a material impact on our balance sheet. We are evaluating the timing of adoption of this guidance.

In August 2015, the FASB issued an amendment to defer for one year the effective date of the new standard on revenue recognition issued in May 2014. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new standard is effective commencing with our 2018 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance.

In July 2015, the FASB issued guidance that requires entities to measure inventory at the lower of cost or net realizable value. The guidance is effective in 2017 with early adoption permitted. We are evaluating the timing of adoption of this guidance.

In August 2014, the FASB issued a standard on the presentation of “Going Concern” in the financial statements. The standard requires management to evaluate whether there are any conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, and, if present, provide enhanced disclosures. The standard is effective with our 2017 fiscal year. We are evaluating the timing of adoption of this guidance.

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 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 consists of the following (in thousands):

	April 2, 2016		January 2, 2016
Allowance for doubtful accounts, current	$	2,957	$	3,204
Allowance for doubtful accounts, non-current	5,187		4,401
	$	8,144	$	7,605

3. Inventories

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

	April 2, 2016		January 2, 2016
Raw materials	$	32,034	$	31,024
Work in process	10,906		10,900
Finished goods	90,373		81,450
	$	133,313	$	123,374

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 ended April 2, 2016 and April 4, 2015.

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

	Goodwill
Balance at January 2, 2016	$	302,908
Foreign currency translation	5,231
Balance at April 2, 2016	$	308,139

At April 2, 2016 and January 2, 2016, 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):

	April 2, 2016						January 2, 2016
	Cost		Accumulated Amortization		Net Carrying Value		Cost		Accumulated Amortization		Net Carrying Value
Amortized customer bases	$	316,743	$	135,837	$	180,906	$	313,821	$	128,230	$	185,591
Amortized non-compete agreements	20		20		—		20		19		1
Total amortized intangible assets	316,763		135,857		180,906		313,841		128,249		185,592
Non-amortized trade names (1)	215,917		—		215,917		212,361		—		212,361
Total intangible assets	$	532,680	$	135,857	$	396,823	$	526,202	$	128,249	$	397,953

(1) The balances at April 2, 2016 and January 2, 2016 include accumulated impairment charges of $169.6 million, of which $89.7 million were recorded in the second half of 2014 and $79.9 million 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 ended April 2, 2016 and April 4, 2015.

Finite-lived intangible assets, which consist of customer bases and non-compete agreements, are amortized 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 $6.3 million for the quarters ended April 2, 2016 and April 4, 2015, respectively. Amortization expense is estimated to be approximately $25 million per year for fiscal years 2016, 2017, 2018, 2019 and 2020.

5. Restructuring Costs

U.S. Distribution and Corporate Functions

During the quarter ended October 3, 2015, the Company announced a restructuring plan focused on realigning certain costs within its U.S. distribution business and select corporate functions. The restructuring plan included the closure of four underperforming company-operated supply centers in the U.S. and the elimination of its roofing product offering in 11 U.S. supply centers. Supply center closures were completed by the end of the fourth quarter 2015.

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Manufacturing

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. The restructuring liability is re-measured when changes in the expected amount and timing of cash flows related to taxes and insurance over the remaining lease term change.

Changes in the restructuring liabilities are as follows (in thousands):

	Quarter Ended April 2, 2016
	Distribution			Manufacturing			Total
Balance at January 2, 2016	$	1,654		$	1,147		$	2,801
Accretion of related lease obligations	—			115			115
Payments	(298		)	(337		)	(635		)
Balance at April 2, 2016	$	1,356		$	925		$	2,281
	Quarter Ended April 4, 2015
	Distribution			Manufacturing			Total
Balance at January 3, 2015	$	—		$	1,960		$	1,960
Accretion of related lease obligations	—			114			114
Payments	—			(364		)	(364		)
Balance at April 4, 2015	$	—		$	1,710		$	1,710

The remaining restructuring liability is included in “Accrued Liabilities” and “Other Liabilities” in the Condensed Consolidated Balance Sheets and will continue to be paid until April 2020 and July 2020, the lease expiration dates for the Ennis warehouse facility and the last of the supply center closures, respectively. For the quarters ended April 2, 2016 and April 4, 2015, there were no changes in the restructuring liabilities that impacted selling, general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Loss.

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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
	April 2, 2016			April 4, 2015
Balance at the beginning of the period	$	85,112		$	89,940
Provision for warranties issued and changes in estimates for pre-existing warranties	1,327			1,250
Claims paid	(1,503		)	(1,328		)
Foreign currency translation	566			(616		)
Balance at the end of the period	$	85,502		$	89,246

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. During 2014, the Company recorded $2.0 million 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, who was named Interim Chief Executive Officer prior to the appointment of Brian C. Strauss as President and Chief Executive Officer in May 2014. For the quarter ended April 2, 2016, there was $0.1 million of separation and hiring costs and $0.3 million of remaining payables related to 2014 executive restructuring activities.

8. Long-Term Debt

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

	April 2, 2016			January 2, 2016
9.125% Senior Secured Notes, due 2017	$	830,000		$	830,000
Borrowings under the ABL facilities	80,724			92,800
Promissory note, related parties	27,500			—
Plus: Unamortized premium	2,340			2,684
Less: Deferred financing costs, net of amortization	(9,069		)	(8,677		)
Total long-term debt	$	931,495		$	916,807

9.125% Senior Secured Notes, due 2017

In October 2010, the Company and its wholly owned subsidiary, AMH New Finance, Inc. (“AMHNF” and, together with the Company, 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.

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 (as defined below) 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

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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 effective interest rate of the new notes, including the premium, is 7.5% as of April 2, 2016.

The 9.125% notes, at par value of $830.0 million, have an estimated fair value, classified as a Level 1 measurement, of $653.6 million and $576.4 million based on quoted market prices as of April 2, 2016 and January 2, 2016, 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. On April 15, 2014, Parent filed a request with the SEC to withdraw the Registration Statement on Form S-1 filed by Parent on July 15, 2013 for a proposed IPO of its common stock. The registration statement was withdrawn because a determination has been made not to proceed with an IPO of Parent’s common stock at the time.

Guarantees. The 9.125% notes are unconditionally guaranteed, jointly and severally, by each of the Issuers’ 100% owned direct and indirect domestic subsidiaries (“guarantors”) that guarantee our obligations under the ABL facilities.

Collateral. The 9.125% notes and the guarantees are secured by a first-priority lien on substantially all of the Issuers’ and the guarantors’ present and future assets located in the United States (other than the ABL collateral, in which the 9.125% notes and the guarantees have a second-priority lien, and certain other excluded assets), including equipment, owned real property valued at $5.0 million or more and all present and future shares of capital stock of each of the Issuers’ and each guarantor’s material directly 100% owned domestic subsidiaries and 65% of the present and future shares of capital stock, of each of the Issuers’ and each guarantor’s directly owned foreign restricted subsidiaries (other than Canadian subsidiaries), in each case subject to the Rule 3-16 exclusion described below, certain other exceptions and customary permitted liens. In addition, the 9.125% notes and the guarantees are secured by a second-priority lien on substantially all of the Issuers’ and the guarantors’ present and future assets, which assets also secure the Issuers’ obligations under the ABL facilities, including accounts receivable, inventory, related general intangibles, certain other related assets and the proceeds thereof.

The capital stock and other securities of any subsidiary will be excluded from the collateral securing the 9.125% notes and the guarantees to the extent that the pledge of such capital stock and other securities would result in the Company being required to file separate financial statements of such subsidiary with the SEC pursuant to Rule 3-16 or Rule 3-10 of Regulation S-X under the Securities Act of 1933, as amended. Rule 3-16 of Regulation S-X requires the presentation of a company’s standalone, audited financial statements if that company’s capital stock or other securities are pledged to secure the securities of another issuer, and the greatest of the principal amount, par value, book value and market value of the pledged stock or securities equals or exceeds 20% of the principal amount of the securities secured by such pledge. Accordingly, the collateral securing the 9.125% notes and the guarantees may in the future exclude the capital stock and securities of the Company’s subsidiaries, in each case to the extent necessary to not be subject to such requirement.

Optional Redemption. The Issuers have the option to redeem the 9.125% notes, in whole or in part, at any time on or after November 1, 2013 at redemption prices (expressed as percentages of principal amount of the 9.125% notes to be redeemed) of 106.844%, 104.563%, 102.281% and 100.000% during the 12-month periods commencing on November 1, 2013, 2014, 2015 and 2016, respectively, plus accrued and unpaid interest thereon, if any, to, but excluding, the applicable redemption date.

Change of Control. Upon the occurrence of a change of control, as defined in the Indenture, the Issuers must give holders of notes the opportunity to sell the Issuers their 9.125% notes at 101% of their face amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.

Covenants. The Indenture contains covenants limiting the Issuers’ ability and the ability of their restricted subsidiaries to, among other things: pay dividends or distributions, repurchase equity, prepay junior debt and make certain investments; incur additional debt or issue certain disqualified stock and preferred stock; incur liens on assets; merge or consolidate with another company or sell all or substantially all assets; enter into transactions with affiliates; and enter into agreements that would restrict our subsidiaries to pay dividends or make other payments to us. These covenants are subject to important exceptions and qualifications as described in the Indenture. Most of these covenants will cease to apply for so long as the 9.125% notes have investment grade ratings from both Moody’s Investors Service, Inc. and Standard & Poor’s Rating Services.

ABL Facilities

In October 2010, the Company and certain of its subsidiaries (as “U.S. borrowers” and “Canadian borrowers” and, collectively, the “borrowers”) entered into the ABL facilities in the amount of $225.0 million (comprised of a $150.0 million

9

U.S. facility and a $75.0 million Canadian facility, the “U.S facility” and the “Canadian facility,” respectively) pursuant to a revolving credit agreement dated October 13, 2010, which was subsequently amended and restated on April 18, 2013 (as amended, 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, 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.

Interest Rate and Fees. 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 April 2, 2016, 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 April 2, 2016, 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%.

Borrowing Base. Availability for borrowings under each of the U.S. facility and the Canadian facility is subject to a borrowing base, which is based on (i) the U.S borrowers’ eligible accounts receivable and inventory, with respect to the U.S. facility and (ii) the Canadian borrowers’ eligible accounts receivable, inventory and, equipment and real property, in each case, after adjusting for customary reserves and, in the case of the Canadian facility, certain payables established or modified from time to time by and at the permitted discretion of the administrative agent thereunder. To the extent that the value of the components in a borrowing base decline, the applicable borrowing base will decrease and the availability under the ABL facilities may decrease below the $213.0 million of aggregate commitments. In addition, if the amount of outstanding borrowings and letters of credit under the U.S. facility or the Canadian facility exceeds the applicable borrowing base or the applicable revolving credit commitments, we are required to prepay borrowings in an amount sufficient to eliminate the excess.

Guarantors. All obligations under the U.S. facility are guaranteed by each existing and subsequently acquired direct and indirect wholly-owned material U.S. restricted subsidiary of us and by our direct parent, other than certain excluded subsidiaries (“U.S. guarantors”). All obligations under the Canadian facility are guaranteed by each existing and subsequently acquired direct and indirect wholly-owned material Canadian restricted subsidiary of us, other than certain excluded subsidiaries (“Canadian guarantors” and, together with U.S. guarantors, “ABL guarantors”) and the U.S. guarantors.

Security. All obligations of the U.S. borrowers and the U.S. guarantors under the ABL facilities are secured by a security interest in substantially all of our present and future property and assets, including a first-priority security interest in our capital stock and a second-priority security interest in the capital stock of each of our direct, material wholly-owned restricted subsidiaries (the “U.S ABL Collateral”. The Canadian security agreement provides that all obligations of the Canadian borrowers and the Canadian guarantors are secured by the U.S. ABL Collateral and a security interest in substantially all of our Canadian assets, including a first-priority security interest in the capital stock of the Canadian borrowers and each direct, material wholly-owned restricted subsidiary of the Canadian borrowers and Canadian guarantors.

Covenants, Representations and Warranties. 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, pursuant to Amendment No. 3 (as defined below), will be tested only when excess availability is less than (1) for the period commencing on and including February 19, 2016 through and including April 21, 2016, $10.0 million, (2) for the period commencing on and including April 22, 2016 through and including May 19, 2016, $7.5 million, (3) for the period commencing on and including May 20, 2016 through and including June 3, 2016, $10.0 million and (4) for the period commencing on and including June 4, 2016 and thereafter, the greater of (i) 10.0% of the sum of (x) the lesser of (A) the U.S. borrowing base and (B) the U.S. revolving credit commitments and (y) the lesser of (A) the Canadian borrowing base and (B) the Canadian revolving credit commitments and (ii) $20.0 million, in each case for a period of five consecutive business days until the 30th consecutive day when excess availability exceeds the above threshold.

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On February 19, 2016, we entered into Amendment No. 3 to Amended and Restated Revolving Credit Agreement (“Amendment No. 3”), which permitted, among other things:

• for the period commencing on and including February 19, 2016 through April 21, 2016, for a cash dominion period to commence, only if excess availability is less than $10.0 million for a period of five consecutive business days (or upon the occurrence and continuance of an event of default), and

• for the period commencing on and including April 22, 2016 through and including May 19, 2016, for a cash dominion period to commence, only if excess availability is less than $7.5 million for a period of five consecutive business days (or upon the occurrence and continuance of an event of default), and

• for the period commencing on and including May 20, 2016 through and including June 3, 2016, for a cash dominion period to commence, only if excess availability is less than $10.0 million for a period of five consecutive business days.

In addition, Amendment No. 3 includes a provision which reduces excess availability in certain circumstances by adding an availability block (i) for the period commencing on and including February 19, 2016 through and including April 21, 2016 $10.0 million, (ii) for the period commencing on and including April 22, 2016 through and including May 19, 2016 $7.5 million, and commencing on and including May 20, 2016 through April 18, 2018 $10.0 million, which would increase to $20.0 million for the period beginning on and including May 20, 2016 through April 18, 2018 in the event all or any portion of the principal of the Sponsor Secured Note (as defined below) is repaid prior to the Amended and Restated Revolving Credit Agreement maturity date.

The fixed charge coverage ratio was 1.05:1.00 for the four consecutive fiscal quarter test period ended April 2, 2016 based upon consolidated adjusted EBITDA of $101.0 million in accordance with the Credit Agreement. The Company has not triggered such fixed charge coverage ratio covenant as of April 2, 2016, as excess availability of $40.6 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 2016. 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.

As of April 2, 2016, there was $80.7 million drawn under the Company’s ABL facilities and $40.6 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 2.9% and 4.6%, respectively, as of April 2, 2016. The Company had letters of credit outstanding of $12.3 million as of April 2, 2016 primarily securing insurance policy deductibles, certain lease facilities and the Company’s purchasing card program.

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 1, Item 1A. “Risk Factors” in our Annual Report. We were in compliance with such financial covenants as of April 2, 2016.

First Lien Promissory Note

On February 19, 2016, the Company, the other borrowers, AMHNF and Holdings, and H&F Finco LLC (“H&F Finco”), an affiliate of Hellman & Friedman LLC, entered into a first lien promissory note (the “Sponsor Secured Note”), $20.0 million to the U.S. borrowers, AMHNF and Holdings and $7.5 million to the Canadian borrowers. The Sponsor Secured Note bears interest at the LIBOR rate plus 4.25%, with a LIBOR floor of 1%, and matures at the earlier of (i) June 18, 2018 and (ii) 30 days prior to the maturity date of the Company’s 9.125% notes. Prepayment of the Sponsor Secured Note is required if (i) excess availability on the date of such payment (prior to giving effect thereto) is no less than $60.0 million and (ii) excess availability on the date of such payment (immediately after giving effect thereto) and the projected daily average excess availability for the thirty-day period immediately following the date of such payment is, in each case, no less than $32.5 million. The Sponsor Secured Note is subject to the same covenants and events of default contained in the Amended and Restated Revolving Credit Agreement and certain additional customary covenants and events of default.

The Sponsor Secured Note is guaranteed by the same guarantors and to the same extent as such guarantors guarantee the obligations of the Company under the Amended and Restated Revolving Credit Agreement. The obligations of the Company, AMHNF, Holdings and the guarantors under the Sponsor Secured Note are secured on a pari passu basis to the liens and assets

11

securing the obligations under the Amended and Restated Revolving Credit Agreement (the “ABL Shared Collateral”), subject to the applicable intercreditor agreement. Concurrently with entering into the Sponsor Secured Note, the Company, the other borrowers, AMHNF, Holdings and the guarantors under the Sponsor Secured Note entered into a revolving loan intercreditor agreement with H&F Finco, as the subordinated debt representative and UBS AG, Stamford Branch and UBS AG Canada Branch, as the senior representatives which subordinates the lien of H&F Finco to the lien of the senior representative and the senior lenders under the Amended and Restated Revolving Credit Agreement in respect of any right of payment from the proceeds of any sale or disposition of ABL Shared Collateral.    

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
	April 2, 2016			April 4, 2015
Loss before income taxes	$	(26,880	)	$	(37,789	)
Income tax expense	1,132			533
Effective tax rate	(4.2		)%	(1.4		)%

The effective tax rates for the quarters ended April 2, 2016 and April 4, 2015 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.

10. Accumulated Other Comprehensive Loss

Changes in accumulated other comprehensive loss by component, net of tax, are as follows (in thousands):

	Defined Benefit Pension and Other Postretirement Plans			Foreign Currency Translation			Accumulated Other Comprehensive Loss
Balance at January 2, 2016	$	(18,901	)	$	(68,006	)	$	(86,907	)
Other comprehensive income before reclassifications, net of tax of $0	—			11,018			11,018
Amounts reclassified from accumulated other comprehensive loss, net of tax of $14	17			—			17
Balance at April 2, 2016	$	(18,884	)	$	(56,988	)	$	(75,872	)

	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	—		(11,586	)	(11,586	)
Amounts reclassified from accumulated other comprehensive loss, net of tax of $17	148		—		148
Balance at April 4, 2015	(23,633	)	(48,428	)	(72,061	)

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Reclassifications out of accumulated other comprehensive loss consist of the following (in thousands):

	Quarters Ended
	April 2, 2016			April 4, 2015
Defined Benefit Pension and Other Postretirement Plans:
Amortization of unrecognized prior service costs	$	6		$	7
Amortization of unrecognized cumulative actuarial net loss	25			158
Total before tax	31			165
Tax expense	(14		)	(17		)
Net of tax	$	17		$	148

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 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 pension plans and postretirement benefits other than pension is December 31.

13

Components of net periodic benefit cost for the Company’s defined benefit pension plans and OPEB plans are as follows (in thousands):

	Quarters Ended
	April 2, 2016									April 4, 2015
	Domestic Plans			Foreign Plans			OPEB Plans			Domestic Plans			Foreign Plans			OPEB Plans
Service cost	$	316		$	620		$	3		$	331		$	641		$	4
Interest cost	827			770			31			806			791			43
Expected return on assets	(854		)	(832		)	—			(973		)	(938		)	—
Amortization of unrecognized:
Prior service costs (credits)	3			5			(2		)	3			6			(2		)
Cumulative actuarial net loss (gain)	21			49			(45		)	104			59			(5		)
Net periodic benefit cost	$	313		$	612		$	(13	)	$	271		$	559		$	40

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

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 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 April 2, 2016. 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

15

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
	April 2, 2016		April 4, 2015
Vinyl windows	$	86,634	$	82,254
Vinyl siding products	38,585		35,165
Metal products	29,820		28,407
Third-party manufactured products	52,227		47,499
Other products and services	29,015		27,041
	$	236,281	$	220,366

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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.

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

April 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	5,249		$	—	$	26		$	796		$	—		$	6,071
Accounts receivable, net	99,578			—		6,286			25,202			—			131,066
Intercompany receivables	335,181			—		68,728			1,794			(405,703		)	—
Inventories	88,936			—		8,461			35,916			—			133,313
Income taxes receivable	—			—		198			1,526			—			1,724
Deferred income taxes	244			—		1,258			—			—			1,502
Prepaid expenses and other current assets	12,366			—		969			1,552			—			14,887
Total current assets	541,554			—		85,926			66,786			(405,703		)	288,563
Property, plant and equipment, net	63,047			—		1,285			26,048			—			90,380
Goodwill	203,841			—		16,713			87,585			—			308,139
Other intangible assets, net	280,115			—		32,521			84,187			—			396,823
Intercompany receivable	—			832,340		—			—			(832,340		)	—
Other assets	3,589			—		85			864			—			4,538
Total assets	$	1,092,146		$	832,340	$	136,530		$	265,470		$	(1,238,043	)	$	1,088,443
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	67,200		$	—	$	7,381		$	22,959		$	—		$	97,540
Intercompany payables	1,794			—		—			403,909			(405,703		)	—
Accrued liabilities	81,125			—		4,364			6,864			—			92,353
Deferred income taxes	767			—		—			464			—			1,231
Income taxes payable	34			—		—			385			—			419
Total current liabilities	150,920			—		11,745			434,581			(405,703		)	191,543
Deferred income taxes	50,149			—		11,920			21,321			—			83,390
Other liabilities	76,513			—		19,625			17,172			—			113,310
Deficit in subsidiaries	141,185			—		234,425			—			(375,610		)	—
Long-term debt	904,674			832,340		—			26,821			(832,340		)	931,495
Member’s deficit	(231,295		)	—		(141,185		)	(234,425		)	375,610			(231,295		)
Total liabilities and member’s deficit	$	1,092,146		$	832,340	$	136,530		$	265,470		$	(1,238,043	)	$	1,088,443

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ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Quarter Ended April 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	195,331		$	—	$	32,308		$	47,857		$	(39,215	)	$	236,281
Cost of sales	156,216			—		29,895			36,332			(39,215		)	183,228
Gross profit	39,115			—		2,413			11,525			—			53,053
Selling, general and administrative expenses	47,257			—		1,703			10,473			—			59,433
(Loss) income from operations	(8,142		)	—		710			1,052			—			(6,380		)
Interest expense, net	20,817			—		—			66			—			20,883
Foreign currency (gain)	—			—		—			(383		)	—			(383		)
Loss before income taxes	(28,959		)	—		710			1,369			—			(26,880		)
Income tax expense (benefit)	778			—		(19		)	373			—			1,132
Loss before equity loss from subsidiaries	(29,737		)	—		729			996			—			(28,012		)
Equity income from subsidiaries	1,725			—		996			—			(2,721		)	—
Net (loss) income	(28,012		)	—		1,725			996			(2,721		)	(28,012		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	17			—		35			40			(75		)	17
Foreign currency translation adjustments, net of tax	11,018			—		11,018			11,018			(22,036		)	11,018
Total comprehensive income (loss)	$	(16,977	)	$	—	$	12,778		$	12,054		$	(24,832	)	$	(16,977	)

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ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Quarter Ended April 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(988	)	$	—	$	3,324		$	(17,564	)	$	—		$	(15,228	)
Investing Activities
Capital expenditures	(1,057		)			(80		)	(838		)	—			(1,975		)
Proceeds from the sale of assets	82								4			—			86
Payments on loans to affiliates	—			—		(3,370		)	—			3,370			—
Receipts on loans to affiliates	—			—		—			(7,000		)	7,000			—
Net cash provided by (used in) investing activities	(975		)	—		(3,450		)	(7,834		)	10,370			(1,889		)
Financing Activities
Borrowings under ABL facilities	15,000								23,789			—			38,789
Payments under ABL facilities	(44,900		)						(6,000		)	—			(50,900		)
Promissory note, related parties	20,000			—		—			7,500			—			27,500
Financing costs	(1,614		)						(10		)				(1,624		)
Borrowings from affiliates	10,370			—		—			—			(10,370		)	—
Repayments to affiliates	—			—		—			—			—			—
Net cash (used in) provided by financing activities	(1,144		)	—		—			25,279			(10,370		)	13,765
Effect of exchange rate changes on cash and cash equivalents									29			—			29
Net decrease in cash and cash equivalents	(3,107		)	—		(126		)	(90		)	—			(3,323		)
Cash and cash equivalents at beginning of period	8,356					152			886			—			9,394
Cash and cash equivalents at end of period	$	5,249		$	—	$	26		$	796		$	—		$	6,071

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ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

January 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	8,356		$	—	$	152		$	886		$	—		$	9,394
Accounts receivable, net	103,506			—		6,903			16,634			—			127,043
Intercompany receivables	352,323			—		67,591			1,794			(421,708		)	—
Inventories	88,440			—		5,527			29,407			—			123,374
Income taxes receivable	—			—		178			1,434			—			1,612
Deferred income taxes	243			—		1,258			1			—			1,502
Prepaid expenses and other current assets	12,114			—		955			1,094			—			14,163
Total current assets	564,982			—		82,564			51,250			(421,708		)	277,088
Property, plant and equipment, net	65,277			—		1,303			24,214			—			90,794
Goodwill	203,841			—		16,713			82,354			—			302,908
Other intangible assets, net	285,115			—		32,633			80,205			—			397,953
Intercompany receivable	—			832,684		—			—			(832,684		)	—
Other assets	3,572			—		1			1,020			—			4,593
Total assets	$	1,122,787		$	832,684	$	133,214		$	239,043		$	(1,254,392	)	$	1,073,336
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	68,213		$	—	$	4,183		$	19,167		$	—		$	91,563
Intercompany payables	1,794			—		—			419,914			(421,708		)	—
Accrued liabilities	71,446			—		4,876			7,308			—			83,630
Deferred income taxes	—			—		—			436			—			436
Income taxes payable	36			—		—			—			—			36
Total current liabilities	141,489			—		9,059			446,825			(421,708		)	175,665
Deferred income taxes	50,147			—		11,920			20,035			—			82,102
Other liabilities	76,641			—		19,676			16,806			—			113,123
Deficit in subsidiaries	153,964			—		246,523			—			(400,487		)	—
Long-term debt	914,907			832,684		—			1,900			(832,684		)	916,807
Member’s deficit	(214,361		)	—		(153,964		)	(246,523		)	400,487			(214,361		)
Total liabilities and member’s deficit	$	1,122,787		$	832,684	$	133,214		$	239,043		$	(1,254,392	)	$	1,073,336

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ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Quarter Ended April 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	179,638		$	—	$	30,162		$	47,248		$	(36,682	)	$	220,366
Cost of sales	148,967			—		28,806			37,372			(36,682		)	178,463
Gross profit	30,671			—		1,356			9,876			—			41,903
Selling, general and administrative expenses	47,657			—		844			9,969			—			58,470
(Loss) income from operations	(16,986		)	—		512			(93		)	—			(16,567		)
Interest expense, net	18,788			—		1,661			257			—			20,706
Foreign currency loss	—			—		—			516			—			516
(Loss) income before income taxes	(35,774		)	—		(1,149		)	(866		)	—			(37,789		)
Income tax expense (benefit)	726			—		24			(217		)	—			533
(Loss) income before equity income (loss) from subsidiaries	(36,500		)	—		(1,173		)	(649		)	—			(38,322		)
Equity income (loss) from subsidiaries	(1,822		)	—		(649		)	—			2,471			—
Net (loss) income	(38,322		)	—		(1,822		)	(649		)	2,471			(38,322		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	148			—		58			48			(106		)	148
Foreign currency translation adjustments, net of tax	(11,586		)	—		(11,586		)	(11,586		)	23,172			(11,586		)
Total comprehensive loss	$	(49,760	)	$	—	$	(13,350	)	$	(12,187	)	$	25,537		$	(49,760	)

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ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Quarter EndedApril 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(20,313	)	$	—	$	1,707		$	(8,065	)	$	—		$	(26,671	)
Investing Activities
Capital expenditures	(5,408		)	—		(65		)	(596		)	—			(6,069		)
Proceeds from the sale of assets	5			—		—			1						6
Payments on loans to affiliates	—			—		(1,642		)	—			1,642			—
Receipts on loans to affiliates	2,000			—		—			—			(2,000		)	—
Net cash used in investing activities	(3,403		)	—		(1,707		)	(595		)	(358		)	(6,063		)
Financing Activities
Borrowings under ABL facilities	31,400			—		—			13,170			—			44,570
Payments under ABL facilities	(11,200		)	—		—			(2,549		)	—			(13,749		)
Borrowings from affiliates	1,642			—		—			—			(1,642		)	—
Repayments to affiliates	—			—		—			(2,000		)	2,000			—
Net cash provided by financing activities	21,842			—		—			8,621			358			30,821
Effect of exchange rate changes on cash and cash equivalents	—			—		—			9			—			9
Net decrease in cash and cash equivalents	(1,874		)	—		—			(30		)	—			(1,904		)
Cash and cash equivalents at beginning of period	5,933			—		—			30			—			5,963
Cash and cash equivalents at end of period	$	4,059		$	—	$	—		$	—		$	—		$	4,059

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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 Condensed 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 provide a comprehensive offering 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 122 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 typically 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.

Our net sales for the quarter ended April 2, 2016 were $236.3 million, representing an increase of $15.9 million, or 7.2%, compared to $220.4 million for the same period in 2015. Our net sales improved across all product lines. Compared to the same period in 2015, sales growth was primarily driven by higher sales in our third-party manufactured products, vinyl window and vinyl siding products. The increase in net sales for third-party manufactured products was due to higher sales volume while the increase in our vinyl window and vinyl siding products was due to a combination of higher sales volume, selling prices and product mix. Vinyl windows, vinyl siding, metal products and third-party manufactured products comprised approximately 37%, 16%, 13% and 22%, respectively, of our net sales for the quarter ended April 2, 2016, which is consistent with the prior period.

Our gross profit for the quarter ended April 2, 2016 was $53.1 million, or 22.5% of net sales, compared to $41.9 million, or 19.0% of net sales, for the same period in 2015. The $11.2 million, or 26.6%, increase in gross profit was due to higher sales volume, improved pricing and lower raw material costs across our manufactured product.

SG&A expenses for the quarter ended April 2, 2016 were $59.4 million, or 25.2% of net sales, compared to $58.5 million, or 26.5% of net sales, for the same period in 2015. The $1.0 million, or 1.6%, increase in SG&A expenses was primarily due to increases in employee compensation expense attributable to higher sales and supply center headcount that was added to support our increased sales. Additionally, sales commission expense has increased related to the increase in overall sales volume compared from prior year. A significant portion of our selling, general and administrative (“SG&A”) expenses are fixed costs such as payroll and benefit costs for our supply center employees, corporate employees and sales representatives, the building lease costs of our supply centers and warehouses, delivery and sales vehicle costs, other administrative expenses and costs related to the operation of our supply centers and corporate office. Other than fixed costs, our SG&A expenses include incentives and commissions, marketing costs, and certain delivery charges such as fuel costs incurred to deliver product to our customers.

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Results of Operations

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

	Quarters Ended
	April 2, 2016			April 4, 2015
Net sales (1)	$	236,281		$	220,366
Cost of sales	183,228			178,463
Gross profit	53,053			41,903
Selling, general and administrative expenses	59,433			58,470
Loss from operations	(6,380		)	(16,567		)
Interest expense	20,883			20,706
Foreign currency (gain) loss	(383		)	516
Loss before income taxes	(26,880		)	(37,789		)
Income tax expense	1,132			533
Net loss	$	(28,012	)	$	(38,322	)
Other Data:
EBITDA (2)	$	3,809		$	(7,204	)
Adjusted EBITDA (2)	3,263			(6,397		)

(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
	April 2, 2016		% of Net Sales		April 4, 2015		% of Net Sales
Vinyl windows	$	86,634	36.7	%	$	82,254	37.3	%
Vinyl siding products	38,585		16.3	%	35,165		16.0	%
Metal products	29,820		12.6	%	28,407		12.9	%
Third-party manufactured products	52,227		22.1	%	47,499		21.6	%
Other products and services	29,015		12.3	%	27,041		12.2	%
	$	236,281	100.0	%	$	220,366	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”), the Indenture and the Sponsor Secured Note. 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
	April 2, 2016			April 4, 2015
Net loss	$	(28,012	)	$	(38,322	)
Interest expense	20,883			20,706
Income tax expense	1,132			533
Depreciation and amortization	9,806			9,879
EBITDA	3,809			(7,204		)
Purchase accounting related adjustments (a)	(852		)	(877		)
Executive officer separation and hiring costs (b)	145			42
Bank audit fees (c)	—			32
Gain on disposal of assets	(11		)	—
Stock-based compensation expense (d)	43			25
Non-cash expense adjustments (e)	—			100
Other normalizing and unusual items (f)	512			969
Foreign currency (gain) loss (g)	(383		)	516
Adjusted EBITDA	$	3,263		$	(6,397	)

(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
	April 2, 2016			April 4, 2015
Pension expense adjustment	$	(621	)	$	(631	)
Amortization related to fair value adjustment of leased facilities	(55		)	(68		)
Amortization related to warranty liabilities	(176		)	(178		)
Purchase accounting related adjustments (a)	$	(852	)	$	(877	)

(b) Represents separation and hiring costs, including payroll taxes and certain benefits and professional fees.

(c) Represents bank audit fees incurred under our current ABL facilities and prior ABL facility.

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

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

(f) Represents the following (in thousands):

	Quarters Ended
	April 2, 2016		April 4, 2015
Professional fees and other costs (i)	$	224	$	841
Accretion on lease liability (ii)	115		114
Excess severance costs (iii)	173		14
	$	512	$	969

(i) Represents management’s estimate of unusual consulting and advisory fees and other costs associated with corporate strategic initiatives. For the quarter ended April 4, 2015, we incurred costs of $0.5 million, related to the launch of the new window platform in 2015. This initiative was complete as of the quarter ended April 2, 2016.

(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.

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

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

Quarter Ended April 2, 2016 Compared to Quarter Ended April 4, 2015

Net sales were $236.3 million for the quarter ended April 2, 2016, an increase of $15.9 million, or 7.2%, compared to $220.4 million for the quarter ended April 4, 2015. Our net sales improved across all product lines. Compared to the same period in 2015, sales growth was primarily driven by higher sales in third-party manufactured products, vinyl window and vinyl siding products. Our net sales increased $4.7 million, or 10.0% for third-party manufactured products. Vinyl window sales this quarter were higher by $4.4 million, or 5.3% primarily due to unit volume growth of approximately 2%. Vinyl siding sales were higher by $3.4 million, or 9.7% with unit volume growth of approximately 9% compared to the prior year quarter. Also contributing to the top line growth was a $2.0 million, or 7.8% increase in net sales for our Installed Sales Solutions (“ISS”) business, and a $1.4 million, or 5.0% increase in metal products, compared to the same period in 2015. On a constant currency basis compared to quarter ended April 4, 2015, our net sales for the quarter ended April 2, 2016 were higher by $2.3 million, or 8.2%.

Gross profit for the quarter ended April 2, 2016 was $53.1 million, or 22.5% of net sales, compared to gross profit of $41.9 million, or 19.0% of net sales, for the quarter ended April 4, 2015. Compared to the prior year quarter, we achieved an approximate 350 basis point increase in gross profit margin as a percent of net sales. The increase in gross profit was primarily due to lower raw material costs of $5.5 million, improved pricing and operational efficiencies of $4.3 million and higher volume impacts of $3.7 million which was driven by strong performance in our integrated product offerings. These gross profit increases were partially offset by higher plant fixed costs of $1.1 million. For the quarter ended April 2, 2016, a weaker Canadian dollar negatively impacted our gross profit by $1.6 million compared to the prior year quarter.

SG&A expenses were $59.4 million, or 25.2% of net sales, for the quarter ended April 2, 2016, compared to $58.5 million, or 26.5% of net sales, for the quarter ended April 4, 2015. The increase of SG&A expenses of $1.0 million was primarily due a $0.7 million increase in employee compensation expense mainly attributable to higher sales and supply center headcount that was added to support the growth of our ISS business and supply center operations, as well as higher commission costs of $0.2 million. Compared to the prior year quarter, SG&A expenses were favorably impacted by $0.7 million due to a weaker Canadian dollar in 2016.

Loss from operations was $6.4 million for the quarter ended April 2, 2016 and $16.6 million for the quarter ended April 4, 2015.

Interest expense was $20.9 million and $20.7 million for the quarters ended April 2, 2016 and April 4, 2015, respectively. The $0.2 million increase in interest expense was primarily related to higher interest rates on the ABL facilities.

Income tax expense of $1.1 million and $0.5 million for the quarters ended April 2, 2016 and April 4, 2015 reflected negative effective income tax rates of 4.2% and 1.4%, respectively, for the quarters then ended. 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.

Net loss for the quarter ended April 2, 2016 was $28.0 million compared to net loss of $38.3 million for the quarter ended April 4, 2015. 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 of each calendar year.

Adopted Accounting Pronouncements

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. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”). ASU 2015-15 provides that, given the absence of authoritative guidance in ASU 2015-03 with respect to presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, an entity is permitted to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance

26

costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. During fiscal 2016, ASU 2015-03 and ASU 2015-05 became effective and accordingly, debt issuance costs of $8.7 million were reclassified from other assets to long-term debt on the January 2, 2016 Condensed Consolidated Balance Sheet.

Recent Accounting Pronouncements

In March 2016, the FASB issued a modified standard on stock compensation. This standard makes several modifications to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. It also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective commencing with our 2017 fiscal year and requires enhanced disclosures. The Company is currently assessing the potential impact of the new requirements under the standard

In February 2016, the FASB issued a new standard on leases. The new standard requires lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by finance and operating leases with lease terms of more than 12 months. The amendment is effective commencing with our 2019 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance.

In November 2015, the FASB issued guidance that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet. The guidance is effective in 2017 with early adoption permitted. The guidance is not expected to have a material impact on our balance sheet. We are evaluating the timing of adoption of this guidance.

In August 2015, the FASB issued an amendment to defer for one year the effective date of the new standard on revenue recognition issued in May 2014. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new standard is effective commencing with our 2018 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance.

In July 2015, the FASB issued guidance that requires entities to measure inventory at the lower of cost or net realizable value. The guidance is effective in 2017 with early adoption permitted. We are evaluating the timing of adoption of this guidance.

In August 2014, the FASB issued a standard on the presentation of “Going Concern” in the financial statements. The standard requires management to evaluate whether there are any conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, and, if present, provide enhanced disclosures. The standard is effective with our 2017 fiscal year. We are evaluating the timing of adoption of this guidance.

Liquidity and Capital Resources

Cash Flows

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

	Quarters Ended
	April 2, 2016			April 4, 2015
Net cash used in operating activities	$	(15,228	)	$	(26,671	)
Net cash used in investing activities	(1,889		)	(6,063		)
Net cash provided by financing activities	13,765			30,821

As of April 2, 2016, we had cash and cash equivalents of $5.3 million in the United States and $0.8 million in Canada. We had available borrowing capacity of $40.6 million under our ABL facilities, after giving effect to outstanding letters of credit and borrowing base limitations. We expect that current cash and cash equivalents, cash generated from operating activities and borrowing capacity under the ABL facilities will be our principal sources of liquidity. In addition, if needed, we can use our available baskets under our existing indebtedness to seek access to other working capital sources, if needed. It is our intention to pursue efforts to refinance our existing long term debt. However, based on our current level of operations and cash flow projections, as well as our potential, id needed, to seek other working capital sources prior to the completion of such refinancing, we believe that these sources will provide adequate liquidity to maintain our operations and capital expenditure

27

requirements and service our debt for the next 12 months. Should economic conditions or market factors deteriorate beyond our expectations, we may not generate sufficient cash flow from operations or may not have future borrowings available to us under the ABL facility in amounts sufficient to enable us to repay our indebtedness or to fund our other liquidity needs.

Cash Flows from Operating Activities

Net cash used in operating activities was $15.2 million for the quarter ended April 2, 2016, compared to $26.7 million for the quarter ended April 4, 2015. The $11.4 million increase in cash was primarily driven by improved operating results of $10.2 million and improvements in working capital of $1.2 million, compared to the prior year quarter.

Change in accounts receivable was a use of cash of $3.6 million for the quarter ended April 2, 2016, compared to a use of cash of $2.1 million for the quarter ended April 4, 2015. The $1.5 million net decrease in cash flow from accounts receivable reflected higher sales in the first quarter of 2016 compared to the prior year quarter, partially offset by improvements in the timing of collections from customers. Change in inventory was a use of cash of $7.9 million for the quarter ended April 2, 2016, compared to a use of cash of $17.8 million for the quarter ended April 4, 2015. The lower use of cash in the current year quarter was primarily driven by improvement in working capital initiatives during the first quarter of 2016. Change in accounts payable and accrued liabilities was a source of cash of $13.3 million for the quarter ended April 2, 2016, compared to a source of cash of $20.7 million for the quarter ended April 4, 2015. The decrease of $7.4 million in cash flows from accounts payable and accrued liabilities was primarily due to the reduction of inventory purchases compared to the prior year quarter.

Cash Flows from Investing Activities

Net cash used in investing activities consisted of $2.0 million and $6.1 million of capital expenditures during the quarters ended April 2, 2016 and April 4, 2015, respectively. The capital expenditures for the current year quarter related to various investments at our manufacturing facilities, while the capital expenditures for the prior year quarter primarily related to investments in our new window platform.

Cash Flows from Financing Activities

Net cash provided by financing activities for the quarter ended April 2, 2016 included borrowings of $38.8 million under our ABL facilities and proceeds from the promissory note of $27.5 million offset by repayments of $50.9 million. Net cash provided by financing activities for the quarter ended April 4, 2015 included borrowings of $44.6 million under our ABL facilities offset by repayments of $13.7 million.

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. (“AMHNF” and 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 May 1 and November 1 of each year.

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 as of October 13, 2010, governing the existing notes, as supplemented by a supplemental indenture (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 $2.7 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 January 2, 2016.

The 9.125% notes, at par value of 830.0 million, have an estimated fair value, classified as a Level 1 measurement, of $653.6 million and $576.4 million based on quoted market prices as of April 2, 2016 and January 2, 2016, 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. On April 15, 2014, Parent filed a request with the SEC to withdraw the Registration Statement on Form S-1 filed by Parent on July 15, 2013 for a proposed IPO of its common stock. The registration

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statement was withdrawn because a determination has been made not to proceed with an IPO of Parent’s common stock at the time.

Guarantees. The 9.125% notes are unconditionally guaranteed, jointly and severally, by each of the Issuers’ 100% owned direct and indirect domestic subsidiaries (“guarantors”) that guarantee our obligations under the ABL facilities.

Collateral. The 9.125% notes and the guarantees are secured by a first-priority lien on substantially all of the Issuers’ and the guarantors’ present and future assets located in the United States (other than the ABL collateral, in which the 9.125% notes and the guarantees have a second-priority lien, and certain other excluded assets), including equipment, owned real property valued at $5.0 million or more and all present and future shares of capital stock of each of the Issuers’ and each guarantor’s material directly 100% owned domestic subsidiaries and 65% of the present and future shares of capital stock, of each of the Issuers’ and each guarantor’s directly owned foreign restricted subsidiaries (other than Canadian subsidiaries), in each case subject to the Rule 3-16 exclusion described below, certain other exceptions and customary permitted liens. In addition, the 9.125% notes and the guarantees are secured by a second-priority lien on substantially all of the Issuers’ and the guarantors’ present and future assets, which assets also secure the Issuers’ obligations under the ABL facilities, including accounts receivable, inventory, related general intangibles, certain other related assets and the proceeds thereof.

The capital stock and other securities of any subsidiary will be excluded from the collateral securing the 9.125% notes and the guarantees to the extent that the pledge of such capital stock and other securities would result in the Company being required to file separate financial statements of such subsidiary with the SEC pursuant to Rule 3-16 or Rule 3-10 of Regulation S-X under the Securities Act of 1933, as amended. Rule 3-16 of Regulation S-X requires the presentation of a company’s standalone, audited financial statements if that company’s capital stock or other securities are pledged to secure the securities of another issuer, and the greatest of the principal amount, par value, book value and market value of the pledged stock or securities equals or exceeds 20% of the principal amount of the securities secured by such pledge. Accordingly, the collateral securing the 9.125% notes and the guarantees may in the future exclude the capital stock and securities of the Company’s subsidiaries, in each case to the extent necessary to not be subject to such requirement.

Optional Redemption. The Issuers have the option to redeem the 9.125% notes, in whole or in part, at any time on or after November 1, 2013 at redemption prices (expressed as percentages of principal amount of the 9.125% notes to be redeemed) of 106.844%, 104.563%, 102.281% and 100.000% during the 12-month periods commencing on November 1, 2013, 2014, 2015 and 2016, respectively, plus accrued and unpaid interest thereon, if any, to, but excluding, the applicable redemption date.

Change of Control. Upon the occurrence of a change of control, as defined in the Indenture, the Issuers must give holders of notes the opportunity to sell the Issuers their 9.125% notes at 101% of their face amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.

Covenants. The Indenture contains covenants limiting the Issuers’ ability and the ability of their restricted subsidiaries to, among other things: pay dividends or distributions, repurchase equity, prepay junior debt and make certain investments; incur additional debt or issue certain disqualified stock and preferred stock; incur liens on assets; merge or consolidate with another company or sell all or substantially all assets; enter into transactions with affiliates; and enter into agreements that would restrict our subsidiaries to pay dividends or make other payments to us. These covenants are subject to important exceptions and qualifications as described in the Indenture. Most of these covenants will cease to apply for so long as the 9.125% notes have investment grade ratings from both Moody’s Investors Service, Inc. and Standard & Poor’s.

ABL Facilities

In October 2010, the Company certain of its subsidiaries (as “U.S. borrowers” and “Canadian borrowers” and, collectively, the “borrowers”) 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. the “U.S. facility” and the “Canadian facility,” respectively) pursuant to a revolving credit agreement dated October 13, 2010, which was subsequently amended and restated on April 18, 2013 (as amended, 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, 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.

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Interest Rate and Fees. 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 April 2, 2016, 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 April 2, 2016, 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%.

Borrowing Base. Availability for borrowings under each of the U.S. facility and the Canadian facility is subject to a borrowing base, which is based on (i) the U.S borrowers’ eligible accounts receivable and inventory, with respect to the U.S. facility and (ii) the Canadian borrowers’ eligible accounts receivable, inventory and, equipment and real property, in each case, after adjusting for customary reserves and, in the case of the Canadian facility, certain payables established or modified from time to time by and at the permitted discretion of the administrative agent thereunder. To the extent that the value of the components in a borrowing base decline, the applicable borrowing base will decrease and the availability under the ABL facilities may decrease below the $213.0 million of aggregate commitments. In addition, if the amount of outstanding borrowings and letters of credit under the U.S. facility or the Canadian facility exceeds the applicable borrowing base or the applicable revolving credit commitments, we are required to prepay borrowings in an amount sufficient to eliminate the excess.

Guarantors. All obligations under the U.S. facility are guaranteed by each existing and subsequently acquired direct and indirect wholly-owned material U.S. restricted subsidiary of us and by our direct parent, other than certain excluded subsidiaries (“U.S. guarantors”). All obligations under the Canadian facility are guaranteed by each existing and subsequently acquired direct and indirect wholly-owned material Canadian restricted subsidiary of us, other than certain excluded subsidiaries (“Canadian guarantors” and, together with U.S. guarantors, “ABL guarantors”) and the U.S. guarantors.

Security. All obligations of the U.S. borrowers and the U.S. guarantors under the ABL facilities are secured by a security interest in substantially all of our present and future property and assets, including a first-priority security interest in our capital stock and a second-priority security interest in the capital stock of each of our direct, material wholly-owned restricted subsidiaries (the “U.S ABL Collateral”. The Canadian security agreement provides that all obligations of the Canadian borrowers and the Canadian guarantors are secured by the U.S. ABL Collateral and a security interest in substantially all of our Canadian assets, including a first-priority security interest in the capital stock of the Canadian borrowers and each direct, material wholly-owned restricted subsidiary of the Canadian borrowers and Canadian guarantors.

Covenants, Representations and Warranties. 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, pursuant to Amendment No. 3 (as defined below), will be tested only when excess availability is less than (1) for the period commencing on and including February 19, 2016 through and including April 21, 2016, $10.0 million, (2) for the period commencing on and including April 22, 2016 through and including May 19, 2016, $7.5 million, (3) for the period commencing on and including May 20, 2016 through and including June 3, 2016, $10.0 million and (4) for the period commencing on and including June 4, 2016 and thereafter, the greater of (i) 10.0% of the sum of (x) the lesser of (A) the U.S. borrowing base and (B) the U.S. revolving credit commitments and (y) the lesser of (A) the Canadian borrowing base and (B) the Canadian revolving credit commitments and (ii) $20.0 million, in each case for a period of five consecutive business days until the 30th consecutive day when excess availability exceeds the above threshold.

On February 19, 2016, we entered into Amendment No. 3 to Amended and Restated Revolving Credit Agreement (“Amendment No. 3”), which permitted, among other things:

• for the period commencing on and including February 19, 2016 through April 21, 2016, for a cash dominion period to commence, only if excess availability is less than $10.0 million for a period of five consecutive business days (or upon the occurrence and continuance of an event of default), and

• for the period commencing on and including April 22, 2016 through and including May 19, 2016, for a cash dominion period to commence, only if excess availability is less than $7.5 million for a period of five consecutive business days (or upon the occurrence and continuance of an event of default), and

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• for the period commencing on and including May 20, 2016 through and including June 3, 2016, for a cash dominion period to commence, only if excess availability is less than $10.0 million for a period of five consecutive business days.

In addition, Amendment No. 3 includes a provision which reduces excess availability in certain circumstances by adding an availability block (i) for the period commencing on and including February 19, 2016 through and including April 21, 2016 $10.0 million, (ii) for the period commencing on and including April 22, 2016 through and including May 19, 2016 $7.5 million, and commencing on and including May 20, 2016 through April 18, 2018 $10.0 million, which would increase to $20.0 million for the period beginning on and including May 20, 2016 through April 18, 2018 in the event all or any portion of the principal of the Sponsor Secured Note (as defined below) is repaid prior to the Amended and Restated Revolving Credit Agreement maturity date.

The fixed charge coverage ratio was 1.05:1.00 for the four consecutive fiscal quarter test period ended April 2, 2016 based upon consolidated adjusted EBITDA of $101.0 million in accordance with the Credit Agreement. We have not triggered such fixed charge coverage ratio covenant as of April 2, 2016, as excess availability of $40.6 million as of such date was in excess of the covenant trigger threshold. We do not expect to trigger such covenant for fiscal year 2016. 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.

As of April 2, 2016, there was $80.7 million drawn under our ABL facilities and $40.6 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 2.9% and 4.6%, respectively, as of April 2, 2016. We had letters of credit outstanding of $12.3 million as of April 2, 2016 primarily securing insurance policy deductibles, certain lease facilities and our purchasing card program.

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 1, Item 1A. “Risk Factors” in our Annual Report. We were in compliance with such financial covenants as of April 2, 2016.

EBITDA is calculated by reference to net income plus interest and amortization of other financing costs, provision for income taxes, depreciation and amortization. Consolidated EBITDA, as defined in the Amended and Restated Revolving Credit Agreement and the Indenture, is calculated by adjusting EBITDA to reflect adjustments permitted in calculating covenant compliance under these agreements. Consolidated EBITDA will be referred to as Adjusted EBITDA herein. We believe that the inclusion of supplementary adjustments to EBITDA applied in presenting Adjusted EBITDA are appropriate to provide additional information to investors to demonstrate our ability to comply with our financial covenant.

First Lien Promissory Note

On February 19, 2016, the Company, the other borrowers, AMHNF and Holdings, and H&F Finco LLC (“H&F Finco”), an affiliate of Hellman & Friedman LLC, entered into a first lien promissory note (the “Sponsor Secured Note”), $20.0 million to the U.S. borrowers, AMHNF and Holdings and $7.5 million to the Canadian borrowers. The Sponsor Secured Note bears interest at the LIBOR rate plus 4.25%, with a LIBOR floor of 1%, and matures at the earlier of (i) June 18, 2018 and (ii) 30 days prior to the maturity date of the Company’s 9.125% notes. Prepayment of the Sponsor Secured Note is permitted if (i) excess availability on the date of such payment (prior to giving effect thereto) is no less than $60.0 million and (ii) excess availability on the date of such payment (immediately after giving effect thereto) and the projected daily average excess availability for the thirty-day period immediately following the date of such payment is, in each case, no less than $32.5 million. The Sponsor Secured Note is subject to the same covenants and events of default contained in the Amended and Restated Revolving Credit Agreement and certain additional customary covenants and events of default.

The Sponsor Secured Note is guaranteed by the same guarantors and to the same extent as such guarantors guarantee the obligations under our Amended and Restated Revolving Credit Agreement. Our obligations, including those of AMHNF, Holdings and the guarantors under the Sponsor Secured Note are secured on a pari passu basis to the liens and assets securing the obligations under the Amended and Restated Revolving Credit Agreement (the “ABL Shared Collateral”), subject to the applicable intercreditor agreement. Concurrently with entering into the Sponsor Secured Note, we, the other borrowers, AMHNF, Holdings and the guarantors under the Sponsor Secured Note entered into a revolving loan intercreditor agreement with H&F Finco, as the subordinated debt representative and UBS AG, Stamford Branch and UBS AG Canada Branch, as the senior representatives which subordinates the lien of H&F Finco to the lien of the senior representative and the senior lenders

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under the Amended and Restated Revolving Credit Agreement in respect of any right of payment from the proceeds of any sale or disposition of ABL Shared Collateral.

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 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 April 2, 2016, 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 our debt instruments 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 our debt instruments, the ability of creditors under our debt instruments to foreclose on our collateral;

• 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 on Form 10-K for the fiscal year ended January 2, 2016, filed with the Securities and Exchange Commission on March 22, 2016 (“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

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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 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.

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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 April 2, 2016, 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 April 2, 2016, we had borrowings outstanding of $80.7 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 $0.8 million.

We have $830.0 million aggregate principal amount of 9.125% notes outstanding as of April 2, 2016 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 $653.6 million based on quoted market prices as of April 2, 2016.

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 April 2, 2016, we were a party to foreign exchange forward contracts for Canadian dollars, the value of which was $0.1 million of gain.

A 10% strengthening or weakening from the levels experienced during the quarter ended April 2, 2016 of the U.S. dollar relative to the Canadian dollar would have resulted in a $1.4 million decrease or increase, respectively, in comprehensive loss for the quarter ended April 2, 2016.

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 April 2, 2016 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 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 2, 2016, the balance of which remains unchanged as of April 2, 2016. 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 2, 2016 filed with the Securities and Exchange Commission on March 22, 2016, 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:	May 3, 2016	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).
10.1	Amendment No. 3 to Amended and Restated Revolving Credit Agreement and US Security Agreement, dated February 19, 2016, among Associated Materials Incorporated, Associated Materials, LLC, Gentek Holdings, LLC, Gentek Building Products, Inc., AMH New Finance, Inc., Associated Materials Canada Limited, Gentek Canada Holdings Limited, Gentek Building Products Limited Partnership and several lenders and agents thereto (incorporated by reference to Exhibit 10.35 to Associated Materials, LLC’s Annual Report on Form 10-K, filed with the SEC on March 22, 2016).
10.2	First Lien Promissory Note, dated February 19, 2016, among Associated Materials Incorporated, Associated Materials, LLC, Gentek Holdings, LLC, Gentek Building Products, Inc., AMH New Finance, Inc., Associated Materials Canada Limited, Gentek Canada Holdings Limited, Gentek Building Products Limited Partnership and H&F Finco LLC. (incorporated by reference to Exhibit 10.36 to Associated Materials, LLC’s Annual Report on Form 10-K, filed with the SEC on March 22, 2016).
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:	May 3, 2016	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:	May 3, 2016	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 April 2, 2016 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:	May 3, 2016	By:	/s/ Brian C. Strauss
			Brian C. Strauss
			President and Chief Executive Officer
			(Principal Executive Officer)
Date:	May 3, 2016	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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Document and Entity Information - shares	3 Months Ended
	Apr. 02, 2016	May. 03, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	ASSOCIATED MATERIALS, LLC
Entity Central Index Key	0000802967
Current Fiscal Year End Date	--01-02
Entity Filer Category	Non-accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 02, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Membership Interest Description	The registrant’s membership interests outstanding were held by an affiliate of the Registrant
Common Shares Outstanding		0

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 6,071	$ 9,394
Accounts receivable, net	131,066	127,043
Inventories	133,313	123,374
Income taxes receivable	1,724	1,612
Deferred income taxes	1,502	1,502
Prepaid expenses and other current assets	14,887	14,163
Total current assets	288,563	277,088
Property, plant and equipment, at cost	190,263	186,495
Less accumulated depreciation	99,883	95,701
Property, plant and equipment, net	90,380	90,794
Goodwill	308,139	302,908
Other intangible assets, net	396,823	397,953
Other assets	4,538	4,593
Total assets	1,088,443	1,073,336
Current liabilities:
Accounts payable	97,540	91,563
Accrued liabilities	92,353	83,630
Deferred income taxes	1,231	436
Income taxes payable	419	36
Total current liabilities	191,543	175,665
Deferred income taxes	83,390	82,102
Other liabilities	113,310	113,123
Long-term debt	$ 931,495	$ 916,807
Commitments and contingencies
Member’s deficit	$ (231,295)	$ (214,361)
Total liabilities and member’s deficit	$ 1,088,443	$ 1,073,336

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Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Statement of Comprehensive Income [Abstract]
Net sales	$ 236,281	$ 220,366
Cost of sales	183,228	178,463
Gross profit	53,053	41,903
Selling, general and administrative expenses	59,433	58,470
Loss from operations	(6,380)	(16,567)
Interest expense	20,883	20,706
Foreign currency (gain) loss	(383)	516
Loss before income taxes	(26,880)	(37,789)
Income tax expense	1,132	533
Net (loss) income	(28,012)	(38,322)
Other comprehensive (loss) income:
Pension and other postretirement benefit adjustments, net of tax	17	148
Foreign currency translation adjustments, net of tax	11,018	(11,586)
Total comprehensive loss	$ (16,977)	$ (49,760)

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Operating Activities
Net loss	$ (28,012)	$ (38,322)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	9,806	9,879
Deferred income taxes	767	727
Provision for losses on accounts receivable	682	771
Amortization of deferred financing costs and premium on senior notes	914	906
Gain on sale of assets	(11)	0
Stock-based compensation expense	43	25
Changes in operating assets and liabilities:
Accounts receivable	(3,640)	(2,141)
Inventories	(7,869)	(17,839)
Accounts payable and accrued liabilities	(13,296)	(20,729)
Income taxes receivable / payable	350	(164)
Other assets and liabilities	(1,554)	(1,242)
Net cash used in operating activities	(15,228)	(26,671)
Investing Activities
Capital expenditures	(1,975)	(6,069)
Proceeds from the sale of assets	86	6
Net cash provided by (used in) investing activities	(1,889)	(6,063)
Financing Activities
Borrowings under ABL facilities	38,789	44,570
Payments under ABL facilities	(50,900)	(13,749)
Promissory note proceeds	27,500	0
Financing costs	(1,624)	0
Net cash (used in) provided by financing activities	13,765	30,821
Effect of exchange rate changes on cash and cash equivalents	29	9
Net decrease in cash and cash equivalents	(3,323)	(1,904)
Cash and cash equivalents at beginning of period	9,394	5,963
Cash and cash equivalents at end of period	6,071	4,059
Supplemental information:
Cash paid for interest	1,080	952
Cash paid for income taxes	3	44
Capital Expenditures Incurred but Not yet Paid	$ 211	$ 733

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Basis of Presentation

3 Months Ended

Apr. 02, 2016

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 interest 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 ended April 2, 2016 and April 4, 2015. 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 2, 2016, filed with the Securities and Exchange Commission (“SEC”) on March 22, 2016 (“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 provides a comprehensive offering 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 122 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 year.

Adopted Accounting Pronouncements

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. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”). ASU 2015-15 provides that, given the absence of authoritative guidance in ASU 2015-03 with respect to presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, an entity is permitted to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. During fiscal 2016, ASU 2015-03 and ASU 2015-05 became effective and accordingly, debt issuance costs of $8.7 million were reclassified from other assets to long-term debt on the January 2, 2016 Condensed Consolidated Balance Sheet

Recent Accounting Pronouncements

In March 2016, the FASB issued a modified standard on stock compensation. This standard makes several modifications to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. It also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective commencing with our 2017 fiscal year and requires enhanced disclosures. The Company is currently assessing the potential impact of the new requirements under the standard

In February 2016, the FASB issued a new standard on leases. The new standard requires lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by finance and operating leases with lease terms of more than 12 months. The amendment is effective commencing with our 2019 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance.

In November 2015, the FASB issued guidance that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet. The guidance is effective in 2017 with early adoption permitted. The guidance is not expected to have a material impact on our balance sheet. We are evaluating the timing of adoption of this guidance.

In August 2015, the FASB issued an amendment to defer for one year the effective date of the new standard on revenue recognition issued in May 2014. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new standard is effective commencing with our 2018 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance.

In July 2015, the FASB issued guidance that requires entities to measure inventory at the lower of cost or net realizable value. The guidance is effective in 2017 with early adoption permitted. We are evaluating the timing of adoption of this guidance.

In August 2014, the FASB issued a standard on the presentation of “Going Concern” in the financial statements. The standard requires management to evaluate whether there are any conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, and, if present, provide enhanced disclosures. The standard is effective with our 2017 fiscal year. We are evaluating the timing of adoption of this guidance.

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Allowance for Doubtful Accounts

3 Months Ended

Apr. 02, 2016

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 consists of the following (in thousands):

	April 2, 2016		January 2, 2016
Allowance for doubtful accounts, current	$	2,957	$	3,204
Allowance for doubtful accounts, non-current	5,187		4,401
	$	8,144	$	7,605

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Inventories

3 Months Ended

Apr. 02, 2016

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):

	April 2, 2016		January 2, 2016
Raw materials	$	32,034	$	31,024
Work in process	10,906		10,900
Finished goods	90,373		81,450
	$	133,313	$	123,374

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Goodwill and Other Intangible Assets

3 Months Ended

Apr. 02, 2016

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 ended April 2, 2016 and April 4, 2015.

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

	Goodwill
Balance at January 2, 2016	$	302,908
Foreign currency translation	5,231
Balance at April 2, 2016	$	308,139

At April 2, 2016 and January 2, 2016, 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):

	April 2, 2016						January 2, 2016
	Cost		Accumulated Amortization		Net Carrying Value		Cost		Accumulated Amortization		Net Carrying Value
Amortized customer bases	$	316,743	$	135,837	$	180,906	$	313,821	$	128,230	$	185,591
Amortized non-compete agreements	20		20		—		20		19		1
Total amortized intangible assets	316,763		135,857		180,906		313,841		128,249		185,592
Non-amortized trade names (1)	215,917		—		215,917		212,361		—		212,361
Total intangible assets	$	532,680	$	135,857	$	396,823	$	526,202	$	128,249	$	397,953

(1) The balances at April 2, 2016 and January 2, 2016 include accumulated impairment charges of $169.6 million, of which $89.7 million were recorded in the second half of 2014 and $79.9 million 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 ended April 2, 2016 and April 4, 2015.

Finite-lived intangible assets, which consist of customer bases and non-compete agreements, are amortized 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 $6.3 million for the quarters ended April 2, 2016 and April 4, 2015, respectively. Amortization expense is estimated to be approximately $25 million per year for fiscal years 2016, 2017, 2018, 2019 and 2020.

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Restructuring Costs

3 Months Ended

Apr. 02, 2016

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

U.S. Distribution and Corporate Functions

During the quarter ended October 3, 2015, the Company announced a restructuring plan focused on realigning certain costs within its U.S. distribution business and select corporate functions. The restructuring plan included the closure of four underperforming company-operated supply centers in the U.S. and the elimination of its roofing product offering in 11 U.S. supply centers. Supply center closures were completed by the end of the fourth quarter 2015.

Manufacturing

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. The restructuring liability is re-measured when changes in the expected amount and timing of cash flows related to taxes and insurance over the remaining lease term change.

Changes in the restructuring liabilities are as follows (in thousands):

	Quarter Ended April 2, 2016
	Distribution			Manufacturing			Total
Balance at January 2, 2016	$	1,654		$	1,147		$	2,801
Accretion of related lease obligations	—			115			115
Payments	(298		)	(337		)	(635		)
Balance at April 2, 2016	$	1,356		$	925		$	2,281
	Quarter Ended April 4, 2015
	Distribution			Manufacturing			Total
Balance at January 3, 2015	$	—		$	1,960		$	1,960
Accretion of related lease obligations	—			114			114
Payments	—			(364		)	(364		)
Balance at April 4, 2015	$	—		$	1,710		$	1,710

The remaining restructuring liability is included in “Accrued Liabilities” and “Other Liabilities” in the Condensed Consolidated Balance Sheets and will continue to be paid until April 2020 and July 2020, the lease expiration dates for the Ennis warehouse facility and the last of the supply center closures, respectively. For the quarters ended April 2, 2016 and April 4, 2015, there were no changes in the restructuring liabilities that impacted selling, general and administrative expenses in the Condensed Consolidated Statements of Comprehensive Loss.

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Product Warranty Costs

3 Months Ended

Apr. 02, 2016

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
	April 2, 2016			April 4, 2015
Balance at the beginning of the period	$	85,112		$	89,940
Provision for warranties issued and changes in estimates for pre-existing warranties	1,327			1,250
Claims paid	(1,503		)	(1,328		)
Foreign currency translation	566			(616		)
Balance at the end of the period	$	85,502		$	89,246

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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Executive Officers' Separation and Hiring Costs

3 Months Ended

Apr. 02, 2016

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. During 2014, the Company recorded $2.0 million 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, who was named Interim Chief Executive Officer prior to the appointment of Brian C. Strauss as President and Chief Executive Officer in May 2014. For the quarter ended April 2, 2016, there was $0.1 million of separation and hiring costs and $0.3 million of remaining payables related to 2014 executive restructuring activities.

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Long-Term Debt

3 Months Ended

Apr. 02, 2016

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

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

	April 2, 2016			January 2, 2016
9.125% Senior Secured Notes, due 2017	$	830,000		$	830,000
Borrowings under the ABL facilities	80,724			92,800
Promissory note, related parties	27,500			—
Plus: Unamortized premium	2,340			2,684
Less: Deferred financing costs, net of amortization	(9,069		)	(8,677		)
Total long-term debt	$	931,495		$	916,807

9.125% Senior Secured Notes, due 2017

In October 2010, the Company and its wholly owned subsidiary, AMH New Finance, Inc. (“AMHNF” and, together with the Company, 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.

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 (as defined below) 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 effective interest rate of the new notes, including the premium, is 7.5% as of April 2, 2016.

The 9.125% notes, at par value of $830.0 million, have an estimated fair value, classified as a Level 1 measurement, of $653.6 million and $576.4 million based on quoted market prices as of April 2, 2016 and January 2, 2016, 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. On April 15, 2014, Parent filed a request with the SEC to withdraw the Registration Statement on Form S-1 filed by Parent on July 15, 2013 for a proposed IPO of its common stock. The registration statement was withdrawn because a determination has been made not to proceed with an IPO of Parent’s common stock at the time.

Guarantees. The 9.125% notes are unconditionally guaranteed, jointly and severally, by each of the Issuers’ 100% owned direct and indirect domestic subsidiaries (“guarantors”) that guarantee our obligations under the ABL facilities.

Collateral. The 9.125% notes and the guarantees are secured by a first-priority lien on substantially all of the Issuers’ and the guarantors’ present and future assets located in the United States (other than the ABL collateral, in which the 9.125% notes and the guarantees have a second-priority lien, and certain other excluded assets), including equipment, owned real property valued at $5.0 million or more and all present and future shares of capital stock of each of the Issuers’ and each guarantor’s material directly 100% owned domestic subsidiaries and 65% of the present and future shares of capital stock, of each of the Issuers’ and each guarantor’s directly owned foreign restricted subsidiaries (other than Canadian subsidiaries), in each case subject to the Rule 3-16 exclusion described below, certain other exceptions and customary permitted liens. In addition, the 9.125% notes and the guarantees are secured by a second-priority lien on substantially all of the Issuers’ and the guarantors’ present and future assets, which assets also secure the Issuers’ obligations under the ABL facilities, including accounts receivable, inventory, related general intangibles, certain other related assets and the proceeds thereof.

The capital stock and other securities of any subsidiary will be excluded from the collateral securing the 9.125% notes and the guarantees to the extent that the pledge of such capital stock and other securities would result in the Company being required to file separate financial statements of such subsidiary with the SEC pursuant to Rule 3-16 or Rule 3-10 of Regulation S-X under the Securities Act of 1933, as amended. Rule 3-16 of Regulation S-X requires the presentation of a company’s standalone, audited financial statements if that company’s capital stock or other securities are pledged to secure the securities of another issuer, and the greatest of the principal amount, par value, book value and market value of the pledged stock or securities equals or exceeds 20% of the principal amount of the securities secured by such pledge. Accordingly, the collateral securing the 9.125% notes and the guarantees may in the future exclude the capital stock and securities of the Company’s subsidiaries, in each case to the extent necessary to not be subject to such requirement.

Optional Redemption. The Issuers have the option to redeem the 9.125% notes, in whole or in part, at any time on or after November 1, 2013 at redemption prices (expressed as percentages of principal amount of the 9.125% notes to be redeemed) of 106.844%, 104.563%, 102.281% and 100.000% during the 12-month periods commencing on November 1, 2013, 2014, 2015 and 2016, respectively, plus accrued and unpaid interest thereon, if any, to, but excluding, the applicable redemption date.

Change of Control. Upon the occurrence of a change of control, as defined in the Indenture, the Issuers must give holders of notes the opportunity to sell the Issuers their 9.125% notes at 101% of their face amount, plus accrued and unpaid interest, if any, to, but excluding, the repurchase date.

Covenants. The Indenture contains covenants limiting the Issuers’ ability and the ability of their restricted subsidiaries to, among other things: pay dividends or distributions, repurchase equity, prepay junior debt and make certain investments; incur additional debt or issue certain disqualified stock and preferred stock; incur liens on assets; merge or consolidate with another company or sell all or substantially all assets; enter into transactions with affiliates; and enter into agreements that would restrict our subsidiaries to pay dividends or make other payments to us. These covenants are subject to important exceptions and qualifications as described in the Indenture. Most of these covenants will cease to apply for so long as the 9.125% notes have investment grade ratings from both Moody’s Investors Service, Inc. and Standard & Poor’s Rating Services.

ABL Facilities

In October 2010, the Company and certain of its subsidiaries (as “U.S. borrowers” and “Canadian borrowers” and, collectively, the “borrowers”) 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, the “U.S facility” and the “Canadian facility,” respectively) pursuant to a revolving credit agreement dated October 13, 2010, which was subsequently amended and restated on April 18, 2013 (as amended, 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, 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.

Interest Rate and Fees. 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 April 2, 2016, 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 April 2, 2016, 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%.

Borrowing Base. Availability for borrowings under each of the U.S. facility and the Canadian facility is subject to a borrowing base, which is based on (i) the U.S borrowers’ eligible accounts receivable and inventory, with respect to the U.S. facility and (ii) the Canadian borrowers’ eligible accounts receivable, inventory and, equipment and real property, in each case, after adjusting for customary reserves and, in the case of the Canadian facility, certain payables established or modified from time to time by and at the permitted discretion of the administrative agent thereunder. To the extent that the value of the components in a borrowing base decline, the applicable borrowing base will decrease and the availability under the ABL facilities may decrease below the $213.0 million of aggregate commitments. In addition, if the amount of outstanding borrowings and letters of credit under the U.S. facility or the Canadian facility exceeds the applicable borrowing base or the applicable revolving credit commitments, we are required to prepay borrowings in an amount sufficient to eliminate the excess.

Guarantors. All obligations under the U.S. facility are guaranteed by each existing and subsequently acquired direct and indirect wholly-owned material U.S. restricted subsidiary of us and by our direct parent, other than certain excluded subsidiaries (“U.S. guarantors”). All obligations under the Canadian facility are guaranteed by each existing and subsequently acquired direct and indirect wholly-owned material Canadian restricted subsidiary of us, other than certain excluded subsidiaries (“Canadian guarantors” and, together with U.S. guarantors, “ABL guarantors”) and the U.S. guarantors.

Security. All obligations of the U.S. borrowers and the U.S. guarantors under the ABL facilities are secured by a security interest in substantially all of our present and future property and assets, including a first-priority security interest in our capital stock and a second-priority security interest in the capital stock of each of our direct, material wholly-owned restricted subsidiaries (the “U.S ABL Collateral”. The Canadian security agreement provides that all obligations of the Canadian borrowers and the Canadian guarantors are secured by the U.S. ABL Collateral and a security interest in substantially all of our Canadian assets, including a first-priority security interest in the capital stock of the Canadian borrowers and each direct, material wholly-owned restricted subsidiary of the Canadian borrowers and Canadian guarantors.

Covenants, Representations and Warranties. 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, pursuant to Amendment No. 3 (as defined below), will be tested only when excess availability is less than (1) for the period commencing on and including February 19, 2016 through and including April 21, 2016, $10.0 million, (2) for the period commencing on and including April 22, 2016 through and including May 19, 2016, $7.5 million, (3) for the period commencing on and including May 20, 2016 through and including June 3, 2016, $10.0 million and (4) for the period commencing on and including June 4, 2016 and thereafter, the greater of (i) 10.0% of the sum of (x) the lesser of (A) the U.S. borrowing base and (B) the U.S. revolving credit commitments and (y) the lesser of (A) the Canadian borrowing base and (B) the Canadian revolving credit commitments and (ii) $20.0 million, in each case for a period of five consecutive business days until the 30th consecutive day when excess availability exceeds the above threshold.

On February 19, 2016, we entered into Amendment No. 3 to Amended and Restated Revolving Credit Agreement (“Amendment No. 3”), which permitted, among other things:

• for the period commencing on and including February 19, 2016 through April 21, 2016, for a cash dominion period to commence, only if excess availability is less than $10.0 million for a period of five consecutive business days (or upon the occurrence and continuance of an event of default), and

• for the period commencing on and including April 22, 2016 through and including May 19, 2016, for a cash dominion period to commence, only if excess availability is less than $7.5 million for a period of five consecutive business days (or upon the occurrence and continuance of an event of default), and

• for the period commencing on and including May 20, 2016 through and including June 3, 2016, for a cash dominion period to commence, only if excess availability is less than $10.0 million for a period of five consecutive business days.

In addition, Amendment No. 3 includes a provision which reduces excess availability in certain circumstances by adding an availability block (i) for the period commencing on and including February 19, 2016 through and including April 21, 2016 $10.0 million, (ii) for the period commencing on and including April 22, 2016 through and including May 19, 2016 $7.5 million, and commencing on and including May 20, 2016 through April 18, 2018 $10.0 million, which would increase to $20.0 million for the period beginning on and including May 20, 2016 through April 18, 2018 in the event all or any portion of the principal of the Sponsor Secured Note (as defined below) is repaid prior to the Amended and Restated Revolving Credit Agreement maturity date.

The fixed charge coverage ratio was 1.05:1.00 for the four consecutive fiscal quarter test period ended April 2, 2016 based upon consolidated adjusted EBITDA of $101.0 million in accordance with the Credit Agreement. The Company has not triggered such fixed charge coverage ratio covenant as of April 2, 2016, as excess availability of $40.6 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 2016. 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.

As of April 2, 2016, there was $80.7 million drawn under the Company’s ABL facilities and $40.6 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 2.9% and 4.6%, respectively, as of April 2, 2016. The Company had letters of credit outstanding of $12.3 million as of April 2, 2016 primarily securing insurance policy deductibles, certain lease facilities and the Company’s purchasing card program.

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 1, Item 1A. “Risk Factors” in our Annual Report. We were in compliance with such financial covenants as of April 2, 2016.

First Lien Promissory Note

On February 19, 2016, the Company, the other borrowers, AMHNF and Holdings, and H&F Finco LLC (“H&F Finco”), an affiliate of Hellman & Friedman LLC, entered into a first lien promissory note (the “Sponsor Secured Note”), $20.0 million to the U.S. borrowers, AMHNF and Holdings and $7.5 million to the Canadian borrowers. The Sponsor Secured Note bears interest at the LIBOR rate plus 4.25%, with a LIBOR floor of 1%, and matures at the earlier of (i) June 18, 2018 and (ii) 30 days prior to the maturity date of the Company’s 9.125% notes. Prepayment of the Sponsor Secured Note is required if (i) excess availability on the date of such payment (prior to giving effect thereto) is no less than $60.0 million and (ii) excess availability on the date of such payment (immediately after giving effect thereto) and the projected daily average excess availability for the thirty-day period immediately following the date of such payment is, in each case, no less than $32.5 million. The Sponsor Secured Note is subject to the same covenants and events of default contained in the Amended and Restated Revolving Credit Agreement and certain additional customary covenants and events of default.

The Sponsor Secured Note is guaranteed by the same guarantors and to the same extent as such guarantors guarantee the obligations of the Company under the Amended and Restated Revolving Credit Agreement. The obligations of the Company, AMHNF, Holdings and the guarantors under the Sponsor Secured Note are secured on a pari passu basis to the liens and assets securing the obligations under the Amended and Restated Revolving Credit Agreement (the “ABL Shared Collateral”), subject to the applicable intercreditor agreement. Concurrently with entering into the Sponsor Secured Note, the Company, the other borrowers, AMHNF, Holdings and the guarantors under the Sponsor Secured Note entered into a revolving loan intercreditor agreement with H&F Finco, as the subordinated debt representative and UBS AG, Stamford Branch and UBS AG Canada Branch, as the senior representatives which subordinates the lien of H&F Finco to the lien of the senior representative and the senior lenders under the Amended and Restated Revolving Credit Agreement in respect of any right of payment from the proceeds of any sale or disposition of ABL Shared Collateral.

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Income Taxes

3 Months Ended

Apr. 02, 2016

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
	April 2, 2016			April 4, 2015
Loss before income taxes	$	(26,880	)	$	(37,789	)
Income tax expense	1,132			533
Effective tax rate	(4.2		)%	(1.4		)%

The effective tax rates for the quarters ended April 2, 2016 and April 4, 2015 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.

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Accumulated Other Comprehensive Loss

3 Months Ended

Apr. 02, 2016

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, are as follows (in thousands):

	Defined Benefit Pension and Other Postretirement Plans			Foreign Currency Translation			Accumulated Other Comprehensive Loss
Balance at January 2, 2016	$	(18,901	)	$	(68,006	)	$	(86,907	)
Other comprehensive income before reclassifications, net of tax of $0	—			11,018			11,018
Amounts reclassified from accumulated other comprehensive loss, net of tax of $14	17			—			17
Balance at April 2, 2016	$	(18,884	)	$	(56,988	)	$	(75,872	)

	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	—		(11,586	)	(11,586	)
Amounts reclassified from accumulated other comprehensive loss, net of tax of $17	148		—		148
Balance at April 4, 2015	(23,633	)	(48,428	)	(72,061	)

Reclassifications out of accumulated other comprehensive loss consist of the following (in thousands):

	Quarters Ended
	April 2, 2016			April 4, 2015
Defined Benefit Pension and Other Postretirement Plans:
Amortization of unrecognized prior service costs	$	6		$	7
Amortization of unrecognized cumulative actuarial net loss	25			158
Total before tax	31			165
Tax expense	(14		)	(17		)
Net of tax	$	17		$	148

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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Stock Plans

3 Months Ended

Apr. 02, 2016

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

Stock Plans

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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Retirement Plans

3 Months Ended

Apr. 02, 2016

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 pension plans and postretirement benefits other than pension is December 31.

Components of net periodic benefit cost for the Company’s defined benefit pension plans and OPEB plans are as follows (in thousands):

	Quarters Ended
	April 2, 2016									April 4, 2015
	Domestic Plans			Foreign Plans			OPEB Plans			Domestic Plans			Foreign Plans			OPEB Plans
Service cost	$	316		$	620		$	3		$	331		$	641		$	4
Interest cost	827			770			31			806			791			43
Expected return on assets	(854		)	(832		)	—			(973		)	(938		)	—
Amortization of unrecognized:
Prior service costs (credits)	3			5			(2		)	3			6			(2		)
Cumulative actuarial net loss (gain)	21			49			(45		)	104			59			(5		)
Net periodic benefit cost	$	313		$	612		$	(13	)	$	271		$	559		$	40

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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Commitments and Contingencies

3 Months Ended

Apr. 02, 2016

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

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 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 April 2, 2016. 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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Business Segments

3 Months Ended

Apr. 02, 2016

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
	April 2, 2016		April 4, 2015
Vinyl windows	$	86,634	$	82,254
Vinyl siding products	38,585		35,165
Metal products	29,820		28,407
Third-party manufactured products	52,227		47,499
Other products and services	29,015		27,041
	$	236,281	$	220,366

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Subsidiary Guarantors

3 Months Ended

Apr. 02, 2016

Subsidiary Guarantors [Abstract]

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

April 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	5,249		$	—	$	26		$	796		$	—		$	6,071
Accounts receivable, net	99,578			—		6,286			25,202			—			131,066
Intercompany receivables	335,181			—		68,728			1,794			(405,703		)	—
Inventories	88,936			—		8,461			35,916			—			133,313
Income taxes receivable	—			—		198			1,526			—			1,724
Deferred income taxes	244			—		1,258			—			—			1,502
Prepaid expenses and other current assets	12,366			—		969			1,552			—			14,887
Total current assets	541,554			—		85,926			66,786			(405,703		)	288,563
Property, plant and equipment, net	63,047			—		1,285			26,048			—			90,380
Goodwill	203,841			—		16,713			87,585			—			308,139
Other intangible assets, net	280,115			—		32,521			84,187			—			396,823
Intercompany receivable	—			832,340		—			—			(832,340		)	—
Other assets	3,589			—		85			864			—			4,538
Total assets	$	1,092,146		$	832,340	$	136,530		$	265,470		$	(1,238,043	)	$	1,088,443
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	67,200		$	—	$	7,381		$	22,959		$	—		$	97,540
Intercompany payables	1,794			—		—			403,909			(405,703		)	—
Accrued liabilities	81,125			—		4,364			6,864			—			92,353
Deferred income taxes	767			—		—			464			—			1,231
Income taxes payable	34			—		—			385			—			419
Total current liabilities	150,920			—		11,745			434,581			(405,703		)	191,543
Deferred income taxes	50,149			—		11,920			21,321			—			83,390
Other liabilities	76,513			—		19,625			17,172			—			113,310
Deficit in subsidiaries	141,185			—		234,425			—			(375,610		)	—
Long-term debt	904,674			832,340		—			26,821			(832,340		)	931,495
Member’s deficit	(231,295		)	—		(141,185		)	(234,425		)	375,610			(231,295		)
Total liabilities and member’s deficit	$	1,092,146		$	832,340	$	136,530		$	265,470		$	(1,238,043	)	$	1,088,443

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Quarter Ended April 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	195,331		$	—	$	32,308		$	47,857		$	(39,215	)	$	236,281
Cost of sales	156,216			—		29,895			36,332			(39,215		)	183,228
Gross profit	39,115			—		2,413			11,525			—			53,053
Selling, general and administrative expenses	47,257			—		1,703			10,473			—			59,433
(Loss) income from operations	(8,142		)	—		710			1,052			—			(6,380		)
Interest expense, net	20,817			—		—			66			—			20,883
Foreign currency (gain)	—			—		—			(383		)	—			(383		)
Loss before income taxes	(28,959		)	—		710			1,369			—			(26,880		)
Income tax expense (benefit)	778			—		(19		)	373			—			1,132
Loss before equity loss from subsidiaries	(29,737		)	—		729			996			—			(28,012		)
Equity income from subsidiaries	1,725			—		996			—			(2,721		)	—
Net (loss) income	(28,012		)	—		1,725			996			(2,721		)	(28,012		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	17			—		35			40			(75		)	17
Foreign currency translation adjustments, net of tax	11,018			—		11,018			11,018			(22,036		)	11,018
Total comprehensive income (loss)	$	(16,977	)	$	—	$	12,778		$	12,054		$	(24,832	)	$	(16,977	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Quarter Ended April 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(988	)	$	—	$	3,324		$	(17,564	)	$	—		$	(15,228	)
Investing Activities
Capital expenditures	(1,057		)			(80		)	(838		)	—			(1,975		)
Proceeds from the sale of assets	82								4			—			86
Payments on loans to affiliates	—			—		(3,370		)	—			3,370			—
Receipts on loans to affiliates	—			—		—			(7,000		)	7,000			—
Net cash provided by (used in) investing activities	(975		)	—		(3,450		)	(7,834		)	10,370			(1,889		)
Financing Activities
Borrowings under ABL facilities	15,000								23,789			—			38,789
Payments under ABL facilities	(44,900		)						(6,000		)	—			(50,900		)
Promissory note, related parties	20,000			—		—			7,500			—			27,500
Financing costs	(1,614		)						(10		)				(1,624		)
Borrowings from affiliates	10,370			—		—			—			(10,370		)	—
Repayments to affiliates	—			—		—			—			—			—
Net cash (used in) provided by financing activities	(1,144		)	—		—			25,279			(10,370		)	13,765
Effect of exchange rate changes on cash and cash equivalents									29			—			29
Net decrease in cash and cash equivalents	(3,107		)	—		(126		)	(90		)	—			(3,323		)
Cash and cash equivalents at beginning of period	8,356					152			886			—			9,394
Cash and cash equivalents at end of period	$	5,249		$	—	$	26		$	796		$	—		$	6,071

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

January 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	8,356		$	—	$	152		$	886		$	—		$	9,394
Accounts receivable, net	103,506			—		6,903			16,634			—			127,043
Intercompany receivables	352,323			—		67,591			1,794			(421,708		)	—
Inventories	88,440			—		5,527			29,407			—			123,374
Income taxes receivable	—			—		178			1,434			—			1,612
Deferred income taxes	243			—		1,258			1			—			1,502
Prepaid expenses and other current assets	12,114			—		955			1,094			—			14,163
Total current assets	564,982			—		82,564			51,250			(421,708		)	277,088
Property, plant and equipment, net	65,277			—		1,303			24,214			—			90,794
Goodwill	203,841			—		16,713			82,354			—			302,908
Other intangible assets, net	285,115			—		32,633			80,205			—			397,953
Intercompany receivable	—			832,684		—			—			(832,684		)	—
Other assets	3,572			—		1			1,020			—			4,593
Total assets	$	1,122,787		$	832,684	$	133,214		$	239,043		$	(1,254,392	)	$	1,073,336
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	68,213		$	—	$	4,183		$	19,167		$	—		$	91,563
Intercompany payables	1,794			—		—			419,914			(421,708		)	—
Accrued liabilities	71,446			—		4,876			7,308			—			83,630
Deferred income taxes	—			—		—			436			—			436
Income taxes payable	36			—		—			—			—			36
Total current liabilities	141,489			—		9,059			446,825			(421,708		)	175,665
Deferred income taxes	50,147			—		11,920			20,035			—			82,102
Other liabilities	76,641			—		19,676			16,806			—			113,123
Deficit in subsidiaries	153,964			—		246,523			—			(400,487		)	—
Long-term debt	914,907			832,684		—			1,900			(832,684		)	916,807
Member’s deficit	(214,361		)	—		(153,964		)	(246,523		)	400,487			(214,361		)
Total liabilities and member’s deficit	$	1,122,787		$	832,684	$	133,214		$	239,043		$	(1,254,392	)	$	1,073,336

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Quarter Ended April 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	179,638		$	—	$	30,162		$	47,248		$	(36,682	)	$	220,366
Cost of sales	148,967			—		28,806			37,372			(36,682		)	178,463
Gross profit	30,671			—		1,356			9,876			—			41,903
Selling, general and administrative expenses	47,657			—		844			9,969			—			58,470
(Loss) income from operations	(16,986		)	—		512			(93		)	—			(16,567		)
Interest expense, net	18,788			—		1,661			257			—			20,706
Foreign currency loss	—			—		—			516			—			516
(Loss) income before income taxes	(35,774		)	—		(1,149		)	(866		)	—			(37,789		)
Income tax expense (benefit)	726			—		24			(217		)	—			533
(Loss) income before equity income (loss) from subsidiaries	(36,500		)	—		(1,173		)	(649		)	—			(38,322		)
Equity income (loss) from subsidiaries	(1,822		)	—		(649		)	—			2,471			—
Net (loss) income	(38,322		)	—		(1,822		)	(649		)	2,471			(38,322		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	148			—		58			48			(106		)	148
Foreign currency translation adjustments, net of tax	(11,586		)	—		(11,586		)	(11,586		)	23,172			(11,586		)
Total comprehensive loss	$	(49,760	)	$	—	$	(13,350	)	$	(12,187	)	$	25,537		$	(49,760	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Quarter EndedApril 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(20,313	)	$	—	$	1,707		$	(8,065	)	$	—		$	(26,671	)
Investing Activities
Capital expenditures	(5,408		)	—		(65		)	(596		)	—			(6,069		)
Proceeds from the sale of assets	5			—		—			1						6
Payments on loans to affiliates	—			—		(1,642		)	—			1,642			—
Receipts on loans to affiliates	2,000			—		—			—			(2,000		)	—
Net cash used in investing activities	(3,403		)	—		(1,707		)	(595		)	(358		)	(6,063		)
Financing Activities
Borrowings under ABL facilities	31,400			—		—			13,170			—			44,570
Payments under ABL facilities	(11,200		)	—		—			(2,549		)	—			(13,749		)
Borrowings from affiliates	1,642			—		—			—			(1,642		)	—
Repayments to affiliates	—			—		—			(2,000		)	2,000			—
Net cash provided by financing activities	21,842			—		—			8,621			358			30,821
Effect of exchange rate changes on cash and cash equivalents	—			—		—			9			—			9
Net decrease in cash and cash equivalents	(1,874		)	—		—			(30		)	—			(1,904		)
Cash and cash equivalents at beginning of period	5,933			—		—			30			—			5,963
Cash and cash equivalents at end of period	$	4,059		$	—	$	—		$	—		$	—		$	4,059

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Basis of Presentation (Policies)

3 Months Ended

Apr. 02, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Accounting

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 interest 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 ended April 2, 2016 and April 4, 2015. 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 2, 2016, filed with the Securities and Exchange Commission (“SEC”) on March 22, 2016 (“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 provides a comprehensive offering 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 122 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 year.

New Accounting Pronouncements

Adopted Accounting Pronouncements

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. In August 2015, the FASB issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements (“ASU 2015-15”). ASU 2015-15 provides that, given the absence of authoritative guidance in ASU 2015-03 with respect to presentation or subsequent measurement of debt issuance costs related to line-of-credit arrangements, an entity is permitted to defer and present debt issuance costs as an asset and subsequently amortize the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. During fiscal 2016, ASU 2015-03 and ASU 2015-05 became effective and accordingly, debt issuance costs of $8.7 million were reclassified from other assets to long-term debt on the January 2, 2016 Condensed Consolidated Balance Sheet

Recent Accounting Pronouncements

In March 2016, the FASB issued a modified standard on stock compensation. This standard makes several modifications to the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies. It also clarifies the statement of cash flows presentation for certain components of share-based awards. The standard is effective commencing with our 2017 fiscal year and requires enhanced disclosures. The Company is currently assessing the potential impact of the new requirements under the standard

In February 2016, the FASB issued a new standard on leases. The new standard requires lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by finance and operating leases with lease terms of more than 12 months. The amendment is effective commencing with our 2019 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance.

In November 2015, the FASB issued guidance that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet. The guidance is effective in 2017 with early adoption permitted. The guidance is not expected to have a material impact on our balance sheet. We are evaluating the timing of adoption of this guidance.

In August 2015, the FASB issued an amendment to defer for one year the effective date of the new standard on revenue recognition issued in May 2014. The new standard outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new standard is effective commencing with our 2018 fiscal year and requires enhanced disclosures. We are evaluating the timing of adoption of this guidance.

In July 2015, the FASB issued guidance that requires entities to measure inventory at the lower of cost or net realizable value. The guidance is effective in 2017 with early adoption permitted. We are evaluating the timing of adoption of this guidance.

In August 2014, the FASB issued a standard on the presentation of “Going Concern” in the financial statements. The standard requires management to evaluate whether there are any conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, and, if present, provide enhanced disclosures. The standard is effective with our 2017 fiscal year. We are evaluating the timing of adoption of this guidance.

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Allowance for Doubtful Accounts (Tables)

3 Months Ended

Apr. 02, 2016

Allowance for Doubtful Accounts [Abstract]

Allowance for doubtful accounts

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

	April 2, 2016		January 2, 2016
Allowance for doubtful accounts, current	$	2,957	$	3,204
Allowance for doubtful accounts, non-current	5,187		4,401
	$	8,144	$	7,605

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Inventories (Tables)

3 Months Ended

Apr. 02, 2016

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):

	April 2, 2016		January 2, 2016
Raw materials	$	32,034	$	31,024
Work in process	10,906		10,900
Finished goods	90,373		81,450
	$	133,313	$	123,374

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Apr. 02, 2016

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 2, 2016	$	302,908
Foreign currency translation	5,231
Balance at April 2, 2016	$	308,139

Schedule of finite-lived intangibles and indefinite-lived intangibles

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

	April 2, 2016						January 2, 2016
	Cost		Accumulated Amortization		Net Carrying Value		Cost		Accumulated Amortization		Net Carrying Value
Amortized customer bases	$	316,743	$	135,837	$	180,906	$	313,821	$	128,230	$	185,591
Amortized non-compete agreements	20		20		—		20		19		1
Total amortized intangible assets	316,763		135,857		180,906		313,841		128,249		185,592
Non-amortized trade names (1)	215,917		—		215,917		212,361		—		212,361
Total intangible assets	$	532,680	$	135,857	$	396,823	$	526,202	$	128,249	$	397,953

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Restructuring Costs (Tables)

3 Months Ended

Apr. 02, 2016

Restructuring and Related Activities [Abstract]

Reconciliation of manufacturing restructuring liability

Changes in the restructuring liabilities are as follows (in thousands):

	Quarter Ended April 2, 2016
	Distribution			Manufacturing			Total
Balance at January 2, 2016	$	1,654		$	1,147		$	2,801
Accretion of related lease obligations	—			115			115
Payments	(298		)	(337		)	(635		)
Balance at April 2, 2016	$	1,356		$	925		$	2,281
	Quarter Ended April 4, 2015
	Distribution			Manufacturing			Total
Balance at January 3, 2015	$	—		$	1,960		$	1,960
Accretion of related lease obligations	—			114			114
Payments	—			(364		)	(364		)
Balance at April 4, 2015	$	—		$	1,710		$	1,710

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Product Warranty Costs (Tables)

3 Months Ended

Apr. 02, 2016

Standard Product Warranty Disclosure [Abstract]

Reconciliation of product warranty reserve

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

	Quarters Ended
	April 2, 2016			April 4, 2015
Balance at the beginning of the period	$	85,112		$	89,940
Provision for warranties issued and changes in estimates for pre-existing warranties	1,327			1,250
Claims paid	(1,503		)	(1,328		)
Foreign currency translation	566			(616		)
Balance at the end of the period	$	85,502		$	89,246

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Long-Term Debt (Tables)

3 Months Ended

Apr. 02, 2016

Debt Disclosure [Abstract]

Schedule of long-term debt instruments

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

	April 2, 2016			January 2, 2016
9.125% Senior Secured Notes, due 2017	$	830,000		$	830,000
Borrowings under the ABL facilities	80,724			92,800
Promissory note, related parties	27,500			—
Plus: Unamortized premium	2,340			2,684
Less: Deferred financing costs, net of amortization	(9,069		)	(8,677		)
Total long-term debt	$	931,495		$	916,807

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Income Taxes (Tables)

3 Months Ended

Apr. 02, 2016

Income Tax Disclosure [Abstract]

Schedule of components of income tax expense (benefit)

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

	Quarters Ended
	April 2, 2016			April 4, 2015
Loss before income taxes	$	(26,880	)	$	(37,789	)
Income tax expense	1,132			533
Effective tax rate	(4.2		)%	(1.4		)%

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Apr. 02, 2016

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, are as follows (in thousands):

	Defined Benefit Pension and Other Postretirement Plans			Foreign Currency Translation			Accumulated Other Comprehensive Loss
Balance at January 2, 2016	$	(18,901	)	$	(68,006	)	$	(86,907	)
Other comprehensive income before reclassifications, net of tax of $0	—			11,018			11,018
Amounts reclassified from accumulated other comprehensive loss, net of tax of $14	17			—			17
Balance at April 2, 2016	$	(18,884	)	$	(56,988	)	$	(75,872	)

	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	—		(11,586	)	(11,586	)
Amounts reclassified from accumulated other comprehensive loss, net of tax of $17	148		—		148
Balance at April 4, 2015	(23,633	)	(48,428	)	(72,061	)

Reclassifications out of accumulated other comprehensive income (loss)

Reclassifications out of accumulated other comprehensive loss consist of the following (in thousands):

	Quarters Ended
	April 2, 2016			April 4, 2015
Defined Benefit Pension and Other Postretirement Plans:
Amortization of unrecognized prior service costs	$	6		$	7
Amortization of unrecognized cumulative actuarial net loss	25			158
Total before tax	31			165
Tax expense	(14		)	(17		)
Net of tax	$	17		$	148

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Retirement Plans (Tables)

3 Months Ended

Apr. 02, 2016

Compensation and Retirement Disclosure [Abstract]

Components of defined pension plan costs

Components of net periodic benefit cost for the Company’s defined benefit pension plans and OPEB plans are as follows (in thousands):

	Quarters Ended
	April 2, 2016									April 4, 2015
	Domestic Plans			Foreign Plans			OPEB Plans			Domestic Plans			Foreign Plans			OPEB Plans
Service cost	$	316		$	620		$	3		$	331		$	641		$	4
Interest cost	827			770			31			806			791			43
Expected return on assets	(854		)	(832		)	—			(973		)	(938		)	—
Amortization of unrecognized:
Prior service costs (credits)	3			5			(2		)	3			6			(2		)
Cumulative actuarial net loss (gain)	21			49			(45		)	104			59			(5		)
Net periodic benefit cost	$	313		$	612		$	(13	)	$	271		$	559		$	40

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Business Segments (Tables)

3 Months Ended

Apr. 02, 2016

Segment Reporting [Abstract]

Revenue from External Customers by Products and Services

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

	Quarters Ended
	April 2, 2016		April 4, 2015
Vinyl windows	$	86,634	$	82,254
Vinyl siding products	38,585		35,165
Metal products	29,820		28,407
Third-party manufactured products	52,227		47,499
Other products and services	29,015		27,041
	$	236,281	$	220,366

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Subsidiary Guarantors (Tables)

3 Months Ended

Apr. 02, 2016

Apr. 04, 2015

Subsidiary Guarantors [Abstract]

Condensed consolidating balance sheet

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

January 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	8,356		$	—	$	152		$	886		$	—		$	9,394
Accounts receivable, net	103,506			—		6,903			16,634			—			127,043
Intercompany receivables	352,323			—		67,591			1,794			(421,708		)	—
Inventories	88,440			—		5,527			29,407			—			123,374
Income taxes receivable	—			—		178			1,434			—			1,612
Deferred income taxes	243			—		1,258			1			—			1,502
Prepaid expenses and other current assets	12,114			—		955			1,094			—			14,163
Total current assets	564,982			—		82,564			51,250			(421,708		)	277,088
Property, plant and equipment, net	65,277			—		1,303			24,214			—			90,794
Goodwill	203,841			—		16,713			82,354			—			302,908
Other intangible assets, net	285,115			—		32,633			80,205			—			397,953
Intercompany receivable	—			832,684		—			—			(832,684		)	—
Other assets	3,572			—		1			1,020			—			4,593
Total assets	$	1,122,787		$	832,684	$	133,214		$	239,043		$	(1,254,392	)	$	1,073,336
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	68,213		$	—	$	4,183		$	19,167		$	—		$	91,563
Intercompany payables	1,794			—		—			419,914			(421,708		)	—
Accrued liabilities	71,446			—		4,876			7,308			—			83,630
Deferred income taxes	—			—		—			436			—			436
Income taxes payable	36			—		—			—			—			36
Total current liabilities	141,489			—		9,059			446,825			(421,708		)	175,665
Deferred income taxes	50,147			—		11,920			20,035			—			82,102
Other liabilities	76,641			—		19,676			16,806			—			113,123
Deficit in subsidiaries	153,964			—		246,523			—			(400,487		)	—
Long-term debt	914,907			832,684		—			1,900			(832,684		)	916,807
Member’s deficit	(214,361		)	—		(153,964		)	(246,523		)	400,487			(214,361		)
Total liabilities and member’s deficit	$	1,122,787		$	832,684	$	133,214		$	239,043		$	(1,254,392	)	$	1,073,336

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING BALANCE SHEET

April 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	5,249		$	—	$	26		$	796		$	—		$	6,071
Accounts receivable, net	99,578			—		6,286			25,202			—			131,066
Intercompany receivables	335,181			—		68,728			1,794			(405,703		)	—
Inventories	88,936			—		8,461			35,916			—			133,313
Income taxes receivable	—			—		198			1,526			—			1,724
Deferred income taxes	244			—		1,258			—			—			1,502
Prepaid expenses and other current assets	12,366			—		969			1,552			—			14,887
Total current assets	541,554			—		85,926			66,786			(405,703		)	288,563
Property, plant and equipment, net	63,047			—		1,285			26,048			—			90,380
Goodwill	203,841			—		16,713			87,585			—			308,139
Other intangible assets, net	280,115			—		32,521			84,187			—			396,823
Intercompany receivable	—			832,340		—			—			(832,340		)	—
Other assets	3,589			—		85			864			—			4,538
Total assets	$	1,092,146		$	832,340	$	136,530		$	265,470		$	(1,238,043	)	$	1,088,443
Liabilities and Member's Deficit
Current liabilities:
Accounts payable	$	67,200		$	—	$	7,381		$	22,959		$	—		$	97,540
Intercompany payables	1,794			—		—			403,909			(405,703		)	—
Accrued liabilities	81,125			—		4,364			6,864			—			92,353
Deferred income taxes	767			—		—			464			—			1,231
Income taxes payable	34			—		—			385			—			419
Total current liabilities	150,920			—		11,745			434,581			(405,703		)	191,543
Deferred income taxes	50,149			—		11,920			21,321			—			83,390
Other liabilities	76,513			—		19,625			17,172			—			113,310
Deficit in subsidiaries	141,185			—		234,425			—			(375,610		)	—
Long-term debt	904,674			832,340		—			26,821			(832,340		)	931,495
Member’s deficit	(231,295		)	—		(141,185		)	(234,425		)	375,610			(231,295		)
Total liabilities and member’s deficit	$	1,092,146		$	832,340	$	136,530		$	265,470		$	(1,238,043	)	$	1,088,443

Condensed consolidating statements of comprehensive loss

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Quarter Ended April 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	195,331		$	—	$	32,308		$	47,857		$	(39,215	)	$	236,281
Cost of sales	156,216			—		29,895			36,332			(39,215		)	183,228
Gross profit	39,115			—		2,413			11,525			—			53,053
Selling, general and administrative expenses	47,257			—		1,703			10,473			—			59,433
(Loss) income from operations	(8,142		)	—		710			1,052			—			(6,380		)
Interest expense, net	20,817			—		—			66			—			20,883
Foreign currency (gain)	—			—		—			(383		)	—			(383		)
Loss before income taxes	(28,959		)	—		710			1,369			—			(26,880		)
Income tax expense (benefit)	778			—		(19		)	373			—			1,132
Loss before equity loss from subsidiaries	(29,737		)	—		729			996			—			(28,012		)
Equity income from subsidiaries	1,725			—		996			—			(2,721		)	—
Net (loss) income	(28,012		)	—		1,725			996			(2,721		)	(28,012		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	17			—		35			40			(75		)	17
Foreign currency translation adjustments, net of tax	11,018			—		11,018			11,018			(22,036		)	11,018
Total comprehensive income (loss)	$	(16,977	)	$	—	$	12,778		$	12,054		$	(24,832	)	$	(16,977	)

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE LOSS

For The Quarter Ended April 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net sales	$	179,638		$	—	$	30,162		$	47,248		$	(36,682	)	$	220,366
Cost of sales	148,967			—		28,806			37,372			(36,682		)	178,463
Gross profit	30,671			—		1,356			9,876			—			41,903
Selling, general and administrative expenses	47,657			—		844			9,969			—			58,470
(Loss) income from operations	(16,986		)	—		512			(93		)	—			(16,567		)
Interest expense, net	18,788			—		1,661			257			—			20,706
Foreign currency loss	—			—		—			516			—			516
(Loss) income before income taxes	(35,774		)	—		(1,149		)	(866		)	—			(37,789		)
Income tax expense (benefit)	726			—		24			(217		)	—			533
(Loss) income before equity income (loss) from subsidiaries	(36,500		)	—		(1,173		)	(649		)	—			(38,322		)
Equity income (loss) from subsidiaries	(1,822		)	—		(649		)	—			2,471			—
Net (loss) income	(38,322		)	—		(1,822		)	(649		)	2,471			(38,322		)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	148			—		58			48			(106		)	148
Foreign currency translation adjustments, net of tax	(11,586		)	—		(11,586		)	(11,586		)	23,172			(11,586		)
Total comprehensive loss	$	(49,760	)	$	—	$	(13,350	)	$	(12,187	)	$	25,537		$	(49,760	)

Condensed consolidating statements of cash flows

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Quarter Ended April 2, 2016

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	(988	)	$	—	$	3,324		$	(17,564	)	$	—		$	(15,228	)
Investing Activities
Capital expenditures	(1,057		)			(80		)	(838		)	—			(1,975		)
Proceeds from the sale of assets	82								4			—			86
Payments on loans to affiliates	—			—		(3,370		)	—			3,370			—
Receipts on loans to affiliates	—			—		—			(7,000		)	7,000			—
Net cash provided by (used in) investing activities	(975		)	—		(3,450		)	(7,834		)	10,370			(1,889		)
Financing Activities
Borrowings under ABL facilities	15,000								23,789			—			38,789
Payments under ABL facilities	(44,900		)						(6,000		)	—			(50,900		)
Promissory note, related parties	20,000			—		—			7,500			—			27,500
Financing costs	(1,614		)						(10		)				(1,624		)
Borrowings from affiliates	10,370			—		—			—			(10,370		)	—
Repayments to affiliates	—			—		—			—			—			—
Net cash (used in) provided by financing activities	(1,144		)	—		—			25,279			(10,370		)	13,765
Effect of exchange rate changes on cash and cash equivalents									29			—			29
Net decrease in cash and cash equivalents	(3,107		)	—		(126		)	(90		)	—			(3,323		)
Cash and cash equivalents at beginning of period	8,356					152			886			—			9,394
Cash and cash equivalents at end of period	$	5,249		$	—	$	26		$	796		$	—		$	6,071

ASSOCIATED MATERIALS, LLC AND SUBSIDIARIES

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

For The Quarter EndedApril 4, 2015

(Unaudited, in thousands)

	Company			Co-Issuer		Subsidiary Guarantors			Non-Guarantor Subsidiaries			Reclassification/ Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(20,313	)	$	—	$	1,707		$	(8,065	)	$	—		$	(26,671	)
Investing Activities
Capital expenditures	(5,408		)	—		(65		)	(596		)	—			(6,069		)
Proceeds from the sale of assets	5			—		—			1						6
Payments on loans to affiliates	—			—		(1,642		)	—			1,642			—
Receipts on loans to affiliates	2,000			—		—			—			(2,000		)	—
Net cash used in investing activities	(3,403		)	—		(1,707		)	(595		)	(358		)	(6,063		)
Financing Activities
Borrowings under ABL facilities	31,400			—		—			13,170			—			44,570
Payments under ABL facilities	(11,200		)	—		—			(2,549		)	—			(13,749		)
Borrowings from affiliates	1,642			—		—			—			(1,642		)	—
Repayments to affiliates	—			—		—			(2,000		)	2,000			—
Net cash provided by financing activities	21,842			—		—			8,621			358			30,821
Effect of exchange rate changes on cash and cash equivalents	—			—		—			9			—			9
Net decrease in cash and cash equivalents	(1,874		)	—		—			(30		)	—			(1,904		)
Cash and cash equivalents at beginning of period	5,933			—		—			30			—			5,963
Cash and cash equivalents at end of period	$	4,059		$	—	$	—		$	—		$	—		$	4,059

XML

Basis of Presentation (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2016 USD ($) distributors facilities supply_centers	Jan. 02, 2016 USD ($)
Entity Information [Line Items]
Entity ownership percentage	100.00%
Number of manufacturing facilities | facilities	11
Contractor customers	50,000
Company owned supply centers | supply_centers	122
Independent distributors | distributors	275
Debt issuance cost	$ 9,069	$ 8,677
Associated Materials, LLC
Entity Information [Line Items]
Entity ownership percentage	100.00%
Hellman & Friedman LLC Affiliated Investment Funds
Entity Information [Line Items]
Entity ownership percentage	97.00%
Long term Debt | Accounting Standards Update 2015-03
Entity Information [Line Items]
Debt issuance cost		8,700
Other Assets | Accounting Standards Update 2015-03
Entity Information [Line Items]
Debt issuance cost		$ (8,700)

XML

Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Allowance for Doubtful Accounts [Abstract]
Allowance for doubtful accounts, current	$ 2,957	$ 3,204
Allowance for doubtful accounts, non-current	5,187	4,401
Allowance for doubtful accounts receivable	$ 8,144	$ 7,605

XML

Inventories (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Inventory, Net [Abstract]
Raw materials	$ 32,034	$ 31,024
Work in process	10,906	10,900
Finished goods	90,373	81,450
Inventory, net	$ 133,313	$ 123,374

XML

Goodwill and Other Intangible Assets (Table 1 Goodwill) (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2016 USD ($)
Goodwill [Rollforward]
Balance at January 2, 2016	$ 302,908
Foreign currency translation	5,231
Balance at April 2, 2016	$ 308,139

XML

Goodwill and Other Intangible Assets (Table 2 Intangibles) (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Finite-Lived Intangible Assets, Net
Amortized Intangible Assets, Cost	$ 316,763	$ 313,841
Amortized Intangible Assets, Accumulated Amortization	135,857	128,249
Amortized Intangible Assets, Net Carrying Value	180,906	185,592
Intangible Assets, Net (Excluding Goodwill)
Amortized and Non-amortized Intangible Assets, Cost (Excluding Goodwill)	532,680	526,202
Amortized and Non-amortized Intangible Assets, Net (Excluding Goodwill)	396,823	397,953
Non-amortized trade names
Intangible Assets, Net (Excluding Goodwill)
Non-amortized Intangible Assets, Cost	215,917	212,361
Amortized customer bases
Finite-Lived Intangible Assets, Net
Amortized Intangible Assets, Cost	316,743	313,821
Amortized Intangible Assets, Accumulated Amortization	135,837	128,230
Amortized Intangible Assets, Net Carrying Value	180,906	185,591
Amortized non-compete agreements
Finite-Lived Intangible Assets, Net
Amortized Intangible Assets, Cost	20	20
Amortized Intangible Assets, Accumulated Amortization	20	19
Amortized Intangible Assets, Net Carrying Value	$ 0	$ 1

XML

Goodwill and Other Intangible Assets (Textual) (Details) - USD ($)	3 Months Ended		6 Months Ended	12 Months Ended
	Apr. 02, 2016	Apr. 04, 2015	Jan. 03, 2015	Dec. 31, 2011	Jan. 02, 2016
Finite-Lived Intangible Assets [Line Items]
Goodwill, accumulated impairment loss	$ 228,500,000				$ 228,500,000
Intangible assets impaired accumulated impairment loss	169,600,000				$ 169,600
Impairment of intangible assets			$ 89,700,000	$ 79,900,000
Amortization of itangible assets	6,200,000	$ 6,300,000
2016	25,000,000
2017	25,000,000
2018	25,000,000
2019	25,000,000
2020	$ 25,000,000
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

XML

Restructuring Costs (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2016 USD ($) supply_centers	Oct. 03, 2015 supply_centers	Apr. 04, 2015 USD ($)
Restructuring Cost and Reserve [Line Items]
Company owned supply centers | supply_centers	122
Distribution [Member]
Restructuring Cost and Reserve [Line Items]
Company owned supply centers | supply_centers		11
Restructuring Reserve [RollForward]
Balance at the beginning of the period	$ 1,654		$ 0
Accretion of related lease obligations	0		0
Payments	(298)		0
Balance at the end of the period	1,356		0
Manufacturing [Member]
Restructuring Reserve [RollForward]
Balance at the beginning of the period	1,147		1,960
Accretion of related lease obligations	115		114
Payments	(337)		(364)
Balance at the end of the period	925		1,710
Facility Closing [Member]
Restructuring Cost and Reserve [Line Items]
Company owned supply centers | supply_centers		4
Restructuring Reserve [RollForward]
Balance at the beginning of the period	2,801		1,960
Accretion of related lease obligations	115		114
Payments	(635)		(364)
Balance at the end of the period	$ 2,281		$ 1,710

XML

Product Warranty Costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Standard Product Warranty Accrual Rollforward
Balance at the beginning of the period	$ 85,112	$ 89,940
Provision for warranties issued and changes in estimates for pre-existing warranties	1,327	1,250
Claims paid	(1,503)	(1,328)
Foreign currency translation	566	(616)
Balance at the end of the period	$ 85,502	$ 89,246

XML

Executive Officers' Separation and Hiring Costs (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Apr. 02, 2016	Jan. 03, 2015
Separation and Hiring Costs [Line Items]
Executive officers' separation and hiring, period costs		$ 2.0
Executive Officer
Separation and Hiring Costs [Line Items]
Executive officers' separation and hiring, period costs	$ 0.1
Executive ocers' separation and hiring, severance liabilities	$ 0.3

XML

Long-Term Debt (Table) (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016
Debt Instrument [Line Items]
Less: Deferred financing costs, net of amortization	$ (9,069)	$ (8,677)
Total long-term debt	931,495	916,807
Senior notes
Debt Instrument [Line Items]
Plus: Unamortized premium	2,340	2,684
Senior notes | 9.125% Senior Secured Notes, due 2017
Debt Instrument [Line Items]
9.125% Senior Secured Notes, due 2017	830,000	830,000
Promissory note, related parties | Promissory note, related parties
Debt Instrument [Line Items]
Promissory note, related parties	27,500	0
Line of credit
Debt Instrument [Line Items]
Borrowings under the ABL facilities	$ 80,724	$ 92,800

XML

Long-Term Debt (Textual 1 Senior Secured Notes) (Details) - USD ($)	3 Months Ended
	Apr. 02, 2016	Jan. 02, 2016	May. 01, 2013	Oct. 31, 2010	Oct. 13, 2010
Debt Instrument [Line Items]
Entity ownership percentage	100.00%
Senior notes | Original 9.125% Secured Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount				$ 730,000,000.0
Debt instrument, interest rate, stated percentage	9.125%			9.125%
Senior notes | New 9.125% Secured Senior Notes
Debt Instrument [Line Items]
Debt instrument, face amount			$ 100,000,000
Debt instrument, interest rate, stated percentage			9.125%		9.125%
Notes sold at as a percentage of principle amount			106.00%
Debt instrument, interest rate, effective percentage	7.50%
Senior notes | 9.125% Senior Secured Notes, due 2017
Debt Instrument [Line Items]
Debt instrument, interest rate, stated percentage	9.125%
Entity ownership percentage	100.00%
9.125% Senior Secured Notes, due 2017	$ 830,000,000	$ 830,000,000
Long-term debt, fair value	653,600,000	$ 576,400,000
Debt instrument, collateral, minimum value of fixed assets that guarantee debt obligation	$ 5,000,000
Debt instrument, collateral, present and future shares of capital stock, percentage	65.00%
Debt Instrument, redemption price in percentage due to change in control	101.00%
12-month Period Commencing on November 1, 2013 | Senior notes | 9.125% Senior Secured Notes, due 2017
Debt Instrument [Line Items]
Debt instrument, redemption price in percentage	106.844%
12-month Period Commencing on November 1, 2014 | Senior notes | 9.125% Senior Secured Notes, due 2017
Debt Instrument [Line Items]
Debt instrument, redemption price in percentage	104.563%
12-month Period Commencing on November 1, 2015 | Senior notes | 9.125% Senior Secured Notes, due 2017
Debt Instrument [Line Items]
Debt instrument, redemption price in percentage	102.281%
12-month Period Commencing on November 1, 2016 | Senior notes | 9.125% Senior Secured Notes, due 2017
Debt Instrument [Line Items]
Debt instrument, redemption price in percentage	100.00%

XML

Long-Term Debt (Textual 2 ABL Facilities) (Details) $ in Thousands						1 Months Ended	2 Months Ended	3 Months Ended	23 Months Ended
	Jun. 03, 2016 USD ($)	May. 20, 2016 USD ($)	Feb. 19, 2016 USD ($)	Apr. 19, 2013 USD ($)	Apr. 18, 2013	May. 19, 2016 USD ($)	Apr. 21, 2016 USD ($)	Apr. 02, 2016 USD ($) quarter	Apr. 18, 2018 USD ($)	Jan. 02, 2016 USD ($)	Oct. 31, 2015 USD ($)	Oct. 31, 2010
Line of Credit Facility [Line Items]
Fixed charge coverage								1.05
Debt instrument, description of variable rate basis			LIBOR
Debt instrument, additional basis rate			4.25%
Debt instrument, interest rate margin pricing increments								25 basis point
Debt instrument, interest rate margin pricing increments, basis points								0.25%
Number of fiscal quarters | quarter								4
Debt instrument, interest rate, stated percentage rate range, minimum			1.00%
First lien promissory note, excess availability threshold, minimum, before prepayment			$ 60,000
First lien promissory note, excess availability. period			30 days
First lien promissory note, excess availability threshold, minimum, after prepayment			$ 32,500
Line of credit
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity								$ 213,000			$ 225,000
Days prior to the maturity date, period					90 days
Fixed charge coverage								1.00
Line of credit facility, increase (decrease) in borrowing capacity, net				$ 12,000
Write off of deferred debt issuance cost				$ 500
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								$ 20,000
Debt Covenant, EBITDA								101,000
Line of credit facility, excess availability								40,600
Line of credit facility, amount outstanding								80,724		$ 92,800
Line of credit facility, remaining borrowing capacity								40,600
Letters of credit outstanding								$ 12,300
US facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity											150,000
Line of credit facility, interest rate at period end								2.90%
Canadian facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity											$ 75,000
Line of credit facility, interest rate at period end								4.60%
LIBOR | US facility
Line of Credit Facility [Line Items]
Debt instrument, description of variable rate basis								LIBOR
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%
Subsequent Event | Line of credit
Line of Credit Facility [Line Items]
Debt Instrument, covenant minimum availability						$ 7,500	$ 10,000
Debt instrument, consecutive business days, period							5 days
Debt Instrument, covenant minimum availability block							$ 10,000
Scenario, Forecast | Line of credit
Line of Credit Facility [Line Items]
Debt Instrument, covenant minimum availability	$ 10,000					$ 7,500
Debt instrument, consecutive business days, period	5 days					5 days
Debt Instrument, covenant minimum availability block		$ 20,000				$ 7,500			$ 10,000
UNITED STATES
Line of Credit Facility [Line Items]
Notes payable, related parties			20,000
CANADA
Line of Credit Facility [Line Items]
Notes payable, related parties			$ 7,500
Senior notes | Original 9.125% Secured Senior Notes
Line of Credit Facility [Line Items]
Debt instrument, interest rate, stated percentage								9.125%				9.125%
Minimum | Line of credit
Line of Credit Facility [Line Items]
Debt instrument, consecutive business days, period								5 days
Maximum | Line of credit
Line of Credit Facility [Line Items]
Debt instrument, consecutive business days, period								30 days

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (26,880)	$ (37,789)
Income tax expense	$ 1,132	$ 533
Effective tax rate	(4.20%)	(1.40%)

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Accumulated Other Comprehensive Loss (Table 1 Change in AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Adjustment, before Tax [Roll Forward]
Beginning Balance	$ (18,901)	$ (23,781)
Other comprehensive income before reclassifications, net of tax of $0	0	0
Amounts reclassified from accumulated other comprehensive loss, net of tax of $14	17	148
Ending Balance	(18,884)	(23,633)
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, before Tax [Roll Forward]
Beginning Balance	(68,006)	(36,842)
Other comprehensive income before reclassifications, net of tax of $0	11,018	(11,586)
Amounts reclassified from accumulated other comprehensive loss, net of tax of $14	0	0
Ending Balance	(56,988)	(48,428)
Other Comprehensive Income (Loss), Before Tax [Roll Forward]
Beginning Balance	(86,907)	(60,623)
Other comprehensive income before reclassifications, net of tax of $0	11,018	(11,586)
Amounts reclassified from accumulated other comprehensive loss, net of tax of $14	17	148
Ending Balance	(75,872)	(72,061)
Othe comprehensive income before reclassifications, tax	0	0
Amounts reclassified from accumulated other comprehensive loss, tax	$ 14	$ 17

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Accumulated Other Comprehensive Loss (Table 2 Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Net of tax	$ 17	$ 148
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	7
Amortization of unrecognized cumulative actuarial net loss	25	158
Total before tax	31	165
Tax expense	(14)	(17)
Net of tax	$ 17	$ 148

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Stock Plans (Details) $ / shares in Units, $ in Millions		1 Months Ended
	May. 31, 2015 $ / shares	Jun. 30, 2015 USD ($) shares	Apr. 30, 2015 shares	Mar. 31, 2015 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in number of shares authorized (in shares)			1,500,000
Number of shares authorized (in shares)			9,050,076.000	7,550,076.000
Employee Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan modification, number of shares affected (in shares)		4,500,000
Plan modification, number of employees affected		17
Weighted average exercise price prior to modification | $ / shares	$ 9.23
Average remaining contractual life	8 years 9 months 18 days
Incremental compensation cost | $		$ 0.3

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Retirement Plans (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2016 USD ($) plan	Apr. 04, 2015 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Number of underfunded plans | plan	3
Domestic Plans
Net periodic benefit cost:
Service cost	$ 316	$ 331
Interest cost	827	806
Expected return on assets	(854)	(973)
Prior service costs (credits)	3	3
Cumulative actuarial net loss (gain)	21	104
Net periodic benefit cost	313	271
Foreign Plans
Net periodic benefit cost:
Service cost	620	641
Interest cost	770	791
Expected return on assets	(832)	(938)
Prior service costs (credits)	5	6
Cumulative actuarial net loss (gain)	49	59
Net periodic benefit cost	612	559
OPEB Plans
Net periodic benefit cost:
Service cost	3	4
Interest cost	31	43
Expected return on assets	0	0
Prior service costs (credits)	(2)	(2)
Cumulative actuarial net loss (gain)	(45)	(5)
Net periodic benefit cost	$ (13)	$ 40

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Commitments and Contingencies (Details) - Environmental Issue - USD ($) $ in Millions	3 Months Ended
	Apr. 02, 2016	Jan. 03, 2015
Loss Contingencies [Line Items]
Environmental remediation funding	$ 0.1
Letters of credit outstanding	$ 0.3
Accrual for environmental loss contingencies		$ 1.0

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Business Segments (Table) (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Revenue from External Customer [Line Items]
Revenues	$ 236,281	$ 220,366
Vinyl windows
Revenue from External Customer [Line Items]
Revenues	86,634	82,254
Vinyl siding products
Revenue from External Customer [Line Items]
Revenues	38,585	35,165
Metal products
Revenue from External Customer [Line Items]
Revenues	29,820	28,407
Third-party manufactured products
Revenue from External Customer [Line Items]
Revenues	52,227	47,499
Other products and services
Revenue from External Customer [Line Items]
Revenues	$ 29,015	$ 27,041

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Business Segments Textual (Details)	3 Months Ended
	Apr. 02, 2016
Segment Reporting [Abstract]
Number of operating segments	1
Number of reportable segments	1

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Subsidiary Guarantors (Textural) (Details)	3 Months Ended
	Apr. 02, 2016
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% Senior Secured Notes, due 2017
Condensed Financial Statements, Captions [Line Items]
Debt instrument, interest rate, stated percentage	9.125%

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Subsidiary Guarantors Table - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands	Apr. 02, 2016	Jan. 02, 2016	Apr. 04, 2015	Jan. 03, 2015
Current assets:
Cash and cash equivalents	$ 6,071	$ 9,394	$ 4,059	$ 5,963
Accounts receivable, net	131,066	127,043
Intercompany receivables	0	0
Inventories	133,313	123,374
Income taxes receivable	1,724	1,612
Deferred income taxes	1,502	1,502
Prepaid expenses and other current assets	14,887	14,163
Total current assets	288,563	277,088
Property, plant and equipment, net	90,380	90,794
Goodwill	308,139	302,908
Other intangible assets, net	396,823	397,953
Intercompany receivable	0	0
Other assets	4,538	4,593
Total assets	1,088,443	1,073,336
Current liabilities:
Accounts payable	97,540	91,563
Intercompany payables	0	0
Accrued liabilities	92,353	83,630
Deferred income taxes	1,231	436
Income taxes payable	419	36
Total current liabilities	191,543	175,665
Deferred income taxes	83,390	82,102
Other liabilities	113,310	113,123
Deficit in subsidiaries	0	0
Long-term debt	931,495	916,807
Member’s deficit	(231,295)	(214,361)
Total liabilities and member’s deficit	1,088,443	1,073,336
Company
Current assets:
Cash and cash equivalents	5,249	8,356	4,059	5,933
Accounts receivable, net	99,578	103,506
Intercompany receivables	335,181	352,323
Inventories	88,936	88,440
Income taxes receivable	0	0
Deferred income taxes	244	243
Prepaid expenses and other current assets	12,366	12,114
Total current assets	541,554	564,982
Property, plant and equipment, net	63,047	65,277
Goodwill	203,841	203,841
Other intangible assets, net	280,115	285,115
Intercompany receivable	0	0
Other assets	3,589	3,572
Total assets	1,092,146	1,122,787
Current liabilities:
Accounts payable	67,200	68,213
Intercompany payables	1,794	1,794
Accrued liabilities	81,125	71,446
Deferred income taxes	767	0
Income taxes payable	34	36
Total current liabilities	150,920	141,489
Deferred income taxes	50,149	50,147
Other liabilities	76,513	76,641
Deficit in subsidiaries	141,185	153,964
Long-term debt	904,674	914,907
Member’s deficit	(231,295)	(214,361)
Total liabilities and member’s deficit	1,092,146	1,122,787
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	832,340	832,684
Other assets	0	0
Total assets	832,340	832,684
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	0	0
Deficit in subsidiaries	0	0
Long-term debt	832,340	832,684
Member’s deficit	0	0
Total liabilities and member’s deficit	832,340	832,684
Subsidiary Guarantors
Current assets:
Cash and cash equivalents	26	152	0	0
Accounts receivable, net	6,286	6,903
Intercompany receivables	68,728	67,591
Inventories	8,461	5,527
Income taxes receivable	198	178
Deferred income taxes	1,258	1,258
Prepaid expenses and other current assets	969	955
Total current assets	85,926	82,564
Property, plant and equipment, net	1,285	1,303
Goodwill	16,713	16,713
Other intangible assets, net	32,521	32,633
Intercompany receivable	0	0
Other assets	85	1
Total assets	136,530	133,214
Current liabilities:
Accounts payable	7,381	4,183
Intercompany payables	0	0
Accrued liabilities	4,364	4,876
Deferred income taxes	0	0
Income taxes payable	0	0
Total current liabilities	11,745	9,059
Deferred income taxes	11,920	11,920
Other liabilities	19,625	19,676
Deficit in subsidiaries	234,425	246,523
Long-term debt	0	0
Member’s deficit	(141,185)	(153,964)
Total liabilities and member’s deficit	136,530	133,214
Non-Guarantor Subsidiaries
Current assets:
Cash and cash equivalents	796	886	0	30
Accounts receivable, net	25,202	16,634
Intercompany receivables	1,794	1,794
Inventories	35,916	29,407
Income taxes receivable	1,526	1,434
Deferred income taxes	0	1
Prepaid expenses and other current assets	1,552	1,094
Total current assets	66,786	51,250
Property, plant and equipment, net	26,048	24,214
Goodwill	87,585	82,354
Other intangible assets, net	84,187	80,205
Intercompany receivable	0	0
Other assets	864	1,020
Total assets	265,470	239,043
Current liabilities:
Accounts payable	22,959	19,167
Intercompany payables	403,909	419,914
Accrued liabilities	6,864	7,308
Deferred income taxes	464	436
Income taxes payable	385	0
Total current liabilities	434,581	446,825
Deferred income taxes	21,321	20,035
Other liabilities	17,172	16,806
Deficit in subsidiaries	0	0
Long-term debt	26,821	1,900
Member’s deficit	(234,425)	(246,523)
Total liabilities and member’s deficit	265,470	239,043
Reclassification/ Eliminations
Current assets:
Cash and cash equivalents	0	0	$ 0	$ 0
Accounts receivable, net	0	0
Intercompany receivables	(405,703)	(421,708)
Inventories	0	0
Income taxes receivable	0	0
Deferred income taxes	0	0
Prepaid expenses and other current assets	0	0
Total current assets	(405,703)	(421,708)
Property, plant and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Intercompany receivable	(832,340)	(832,684)
Other assets	0	0
Total assets	(1,238,043)	(1,254,392)
Current liabilities:
Accounts payable	0	0
Intercompany payables	(405,703)	(421,708)
Accrued liabilities	0	0
Deferred income taxes	0	0
Income taxes payable	0	0
Total current liabilities	(405,703)	(421,708)
Deferred income taxes	0	0
Other liabilities	0	0
Deficit in subsidiaries	(375,610)	(400,487)
Long-term debt	(832,340)	(832,684)
Member’s deficit	375,610	400,487
Total liabilities and member’s deficit	$ (1,238,043)	$ (1,254,392)

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Subsidiary Guarantors Table - Condensed Consolidating Statement of Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Condensed Financial Statements, Captions [Line Items]
Net sales	$ 236,281	$ 220,366
Cost of sales	183,228	178,463
Gross profit	53,053	41,903
Selling, general and administrative expenses	59,433	58,470
(Loss) income from operations	(6,380)	(16,567)
Interest expense, net	20,883	20,706
Foreign currency (gain)	(383)	516
Loss before income taxes	(26,880)	(37,789)
Income tax expense	1,132	533
Loss before equity loss from subsidiaries	(28,012)	(38,322)
Equity income from subsidiaries	0	0
Net (loss) income	(28,012)	(38,322)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	17	148
Foreign currency translation adjustments, net of tax	11,018	(11,586)
Total comprehensive income (loss)	(16,977)	(49,760)
Company
Condensed Financial Statements, Captions [Line Items]
Net sales	195,331	179,638
Cost of sales	156,216	148,967
Gross profit	39,115	30,671
Selling, general and administrative expenses	47,257	47,657
(Loss) income from operations	(8,142)	(16,986)
Interest expense, net	20,817	18,788
Foreign currency (gain)	0	0
Loss before income taxes	(28,959)	(35,774)
Income tax expense	778	726
Loss before equity loss from subsidiaries	(29,737)	(36,500)
Equity income from subsidiaries	1,725	(1,822)
Net (loss) income	(28,012)	(38,322)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	17	148
Foreign currency translation adjustments, net of tax	11,018	(11,586)
Total comprehensive income (loss)	(16,977)	(49,760)
Co-Issuer
Condensed Financial Statements, Captions [Line Items]
Net sales	0	0
Cost of sales	0	0
Gross profit	0	0
Selling, general and administrative expenses	0	0
(Loss) income from operations	0	0
Interest expense, net	0	0
Foreign currency (gain)	0	0
Loss before income taxes	0	0
Income tax expense	0	0
Loss before equity loss from subsidiaries	0	0
Equity income from subsidiaries	0	0
Net (loss) income	0	0
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	0	0
Foreign currency translation adjustments, net of tax	0	0
Total comprehensive income (loss)	0	0
Subsidiary Guarantors
Condensed Financial Statements, Captions [Line Items]
Net sales	32,308	30,162
Cost of sales	29,895	28,806
Gross profit	2,413	1,356
Selling, general and administrative expenses	1,703	844
(Loss) income from operations	710	512
Interest expense, net	0	1,661
Foreign currency (gain)	0	0
Loss before income taxes	710	(1,149)
Income tax expense	(19)	24
Loss before equity loss from subsidiaries	729	(1,173)
Equity income from subsidiaries	996	(649)
Net (loss) income	1,725	(1,822)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	35	58
Foreign currency translation adjustments, net of tax	11,018	(11,586)
Total comprehensive income (loss)	12,778	(13,350)
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net sales	47,857	47,248
Cost of sales	36,332	37,372
Gross profit	11,525	9,876
Selling, general and administrative expenses	10,473	9,969
(Loss) income from operations	1,052	(93)
Interest expense, net	66	257
Foreign currency (gain)	(383)	516
Loss before income taxes	1,369	(866)
Income tax expense	373	(217)
Loss before equity loss from subsidiaries	996	(649)
Equity income from subsidiaries	0	0
Net (loss) income	996	(649)
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	40	48
Foreign currency translation adjustments, net of tax	11,018	(11,586)
Total comprehensive income (loss)	12,054	(12,187)
Reclassification/ Eliminations
Condensed Financial Statements, Captions [Line Items]
Net sales	(39,215)	(36,682)
Cost of sales	(39,215)	(36,682)
Gross profit	0	0
Selling, general and administrative expenses	0	0
(Loss) income from operations	0	0
Interest expense, net	0	0
Foreign currency (gain)	0	0
Loss before income taxes	0	0
Income tax expense	0	0
Loss before equity loss from subsidiaries	0	0
Equity income from subsidiaries	(2,721)	2,471
Net (loss) income	(2,721)	2,471
Other comprehensive income (loss):
Pension and other postretirement benefit adjustments, net of tax	(75)	(106)
Foreign currency translation adjustments, net of tax	(22,036)	23,172
Total comprehensive income (loss)	$ (24,832)	$ 25,537

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Subsidiary Guarantors Table - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2016	Apr. 04, 2015
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	$ (15,228)	$ (26,671)
Investing Activities
Capital expenditures	(1,975)	(6,069)
Proceeds from the sale of assets	86	6
Payments on loans to affiliates	0	0
Receipts on loans to affiliates	0	0
Net cash provided by (used in) investing activities	(1,889)	(6,063)
Financing Activities
Borrowings under ABL facilities	38,789	44,570
Payments under ABL facilities	(50,900)	(13,749)
Promissory note, related parties	27,500
Financing costs	(1,624)	0
Borrowings from affiliates	0	0
Repayments to affiliates	0	0
Net cash (used in) provided by financing activities	13,765	30,821
Effect of exchange rate changes on cash and cash equivalents	29	9
Net decrease in cash and cash equivalents	(3,323)	(1,904)
Cash and cash equivalents at beginning of period	9,394	5,963
Cash and cash equivalents at end of period	6,071	4,059
Company
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(988)	(20,313)
Investing Activities
Capital expenditures	(1,057)	(5,408)
Proceeds from the sale of assets	82	5
Payments on loans to affiliates	0	0
Receipts on loans to affiliates	0	2,000
Net cash provided by (used in) investing activities	(975)	(3,403)
Financing Activities
Borrowings under ABL facilities	15,000	31,400
Payments under ABL facilities	(44,900)	(11,200)
Promissory note, related parties	20,000
Financing costs	(1,614)
Borrowings from affiliates	10,370	1,642
Repayments to affiliates	0	0
Net cash (used in) provided by financing activities	$ (1,144)	21,842
Effect of exchange rate changes on cash and cash equivalents		0
Net decrease in cash and cash equivalents	$ (3,107)	(1,874)
Cash and cash equivalents at beginning of period	8,356	5,933
Cash and cash equivalents at end of period	5,249	4,059
Co-Issuer
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	$ 0	0
Investing Activities
Capital expenditures		0
Proceeds from the sale of assets		0
Payments on loans to affiliates	$ 0	0
Receipts on loans to affiliates	0	0
Net cash provided by (used in) investing activities	$ 0	0
Financing Activities
Borrowings under ABL facilities		0
Payments under ABL facilities		0
Promissory note, related parties	$ 0
Borrowings from affiliates	0	0
Repayments to affiliates	0	0
Net cash (used in) provided by financing activities	$ 0	0
Effect of exchange rate changes on cash and cash equivalents		0
Net 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 provided by (used in) operating activities	3,324	1,707
Investing Activities
Capital expenditures	$ (80)	(65)
Proceeds from the sale of assets		0
Payments on loans to affiliates	$ (3,370)	(1,642)
Receipts on loans to affiliates	0	0
Net cash provided by (used in) investing activities	$ (3,450)	(1,707)
Financing Activities
Borrowings under ABL facilities		0
Payments under ABL facilities		0
Promissory note, related parties	$ 0
Borrowings from affiliates	0	0
Repayments to affiliates	0	0
Net cash (used in) provided by financing activities	$ 0	0
Effect of exchange rate changes on cash and cash equivalents		0
Net decrease in cash and cash equivalents	$ (126)	0
Cash and cash equivalents at beginning of period	152	0
Cash and cash equivalents at end of period	26	0
Non-Guarantor Subsidiaries
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	(17,564)	(8,065)
Investing Activities
Capital expenditures	(838)	(596)
Proceeds from the sale of assets	4	1
Payments on loans to affiliates	0	0
Receipts on loans to affiliates	(7,000)	0
Net cash provided by (used in) investing activities	(7,834)	(595)
Financing Activities
Borrowings under ABL facilities	23,789	13,170
Payments under ABL facilities	(6,000)	(2,549)
Promissory note, related parties	7,500
Financing costs	(10)
Borrowings from affiliates	0	0
Repayments to affiliates	0	(2,000)
Net cash (used in) provided by financing activities	25,279	8,621
Effect of exchange rate changes on cash and cash equivalents	29	9
Net decrease in cash and cash equivalents	(90)	(30)
Cash and cash equivalents at beginning of period	886	30
Cash and cash equivalents at end of period	796	0
Reclassification/ Eliminations
Condensed Financial Statements, Captions [Line Items]
Net cash provided by (used in) operating activities	0	0
Investing Activities
Capital expenditures	0	0
Proceeds from the sale of assets	0
Payments on loans to affiliates	3,370	1,642
Receipts on loans to affiliates	7,000	(2,000)
Net cash provided by (used in) investing activities	10,370	(358)
Financing Activities
Borrowings under ABL facilities	0	0
Payments under ABL facilities	0	0
Promissory note, related parties	0
Borrowings from affiliates	(10,370)	(1,642)
Repayments to affiliates	0	2,000
Net cash (used in) provided by financing activities	(10,370)	358
Effect of exchange rate changes on cash and cash equivalents	0	0
Net 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