10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________

FORM 10-Q

____________________________

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

For the quarterly period ended July 3, 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: 001-11796

____________________________

Masonite International Corporation

(Exact name of registrant as specified in its charter)

____________________________

British Columbia, Canada (State or other jurisdiction of incorporation or organization) 98-0377314 (I.R.S. Employer Identification No.)

2771 Rutherford Road

Concord, Ontario L4K 2N6 Canada

(Address of principal executive offices)

(800) 895-2723

(Registrant’s telephone number, including area code)

____________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

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

Indicate by check mark whether 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	x	Accelerated filer	o
Non-accelerated filer	o (Do not check if a smaller reporting company)	Smaller reporting company	o

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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

The registrant had outstanding 30,581,543 shares of Common Stock, no par value, as of August 8, 2016.

MASONITE INTERNATIONAL CORPORATION

INDEX TO QUARTERLY REPORT ON FORM 10-Q

July 3, 2016

PART I		Page
Item 1	Unaudited Financial Statements
	Condensed Consolidated Statements of Comprehensive Income (Loss)	4
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Changes in Equity	6
	Condensed Consolidated Statements of Cash Flows	7
	Notes to the Condensed Consolidated Financial Statements	8
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3	Quantitative and Qualitative Disclosures About Market Risk	48
Item 4	Controls and Procedures	48
PART II
Item 1	Legal Proceedings	49
Item 1A	Risk Factors	49
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	49
Item 3	Defaults Upon Senior Securities	50
Item 4	Mine Safety Disclosures	50
Item 5	Other Information	50
Item 6	Exhibits	50

2

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements concerning the conditions in our industry, our operations, our economic performance and financial condition, including, in particular, statements relating to our business and growth strategy and product development efforts under "Management’s Discussion and Analysis of Financial Condition and Results of Operations." Forward-looking statements include all statements that do not relate solely to historical or current facts and can be identified by the use of words such as "may," "might," "will," "should," "estimate," "project," "plan," "anticipate," "expect," "intend," "outlook," "believe" and other similar expressions. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based on estimates and assumptions by our management that, although we believe to be reasonable, are inherently uncertain and subject to a number of risks and uncertainties. These risks and uncertainties include, without limitation, those identified under "Risk Factors" in our Annual Report on Form 10-K for the year ended January 3, 2016, and elsewhere in this Quarterly Report.

The following list represents some, but not necessarily all, of the factors that could cause actual results to differ from historical results or those anticipated or predicted by these forward-looking statements:

• our ability to successfully implement our business strategy;

• general economic, market and business conditions;

• levels of residential new construction; residential repair, renovation and remodeling; and non-residential building construction activity;

• the United Kingdom referendum to exit the European Union;

• competition;

• our ability to manage our operations including integrating our recent acquisitions and companies or assets we acquire in the future;

• our ability to generate sufficient cash flows to fund our capital expenditure requirements, to meet our pension obligations, and to meet our debt service obligations, including our obligations under our senior notes and our ABL Facility;

• labor relations (i.e., disruptions, strikes or work stoppages), labor costs and availability of labor;

• increases in the costs of raw materials or any shortage in supplies;

• our ability to keep pace with technological developments;

• the actions taken by, and the continued success of, certain key customers;

• our ability to maintain relationships with certain customers;

• new contractual commitments;

• the ability to generate the benefits of our restructuring activities;

• retention of key management personnel;

• environmental and other government regulations;

• our levels of indebtedness, including our obligations under our senior notes and our ABL Facility;

• limitations on operating our business as a result of covenant restrictions under our existing and future indebtedness, including our senior notes and our ABL Facility; and

• our ability to repurchase our senior notes upon a change of control.

We caution you that the foregoing list of important factors is not exclusive. In addition, in light of these risks and uncertainties, the matters referred to in the forward-looking statements contained in this Quarterly Report may not in fact occur. We undertake no obligation to publicly update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.

3

PART I – FINANCIAL INFORMATION

Item 1. Unaudited Financial Statements

MASONITE INTERNATIONAL CORPORATION

Condensed Consolidated Statements of Comprehensive Income (Loss)

(In thousands of U.S. dollars, except per share amounts)

(Unaudited)

	Three Months Ended						Six Months Ended
	July 3, 2016			June 28, 2015			July 3, 2016			June 28, 2015
Net sales	$	513,985		$	476,428		$	1,003,290		$	910,893
Cost of goods sold	402,881			381,394			793,941			742,550
Gross profit	111,104			95,034			209,349			168,343
Selling, general and administration expenses	68,961			58,818			133,859			116,979
Restructuring costs	(103		)	988			(84		)	3,344
Loss (gain) on disposal of subsidiaries	(1,431		)	—			(1,431		)	—
Operating income (loss)	43,677			35,228			77,005			48,020
Interest expense (income), net	6,933			6,787			14,165			18,540
Loss on extinguishment of debt	—			—			—			28,046
Other expense (income), net	(801		)	(635		)	(15		)	(1,819		)
Income (loss) from continuing operations before income tax expense (benefit)	37,545			29,076			62,855			3,253
Income tax expense (benefit)	2,855			15,013			9,065			18,277
Income (loss) from continuing operations	34,690			14,063			53,790			(15,024		)
Income (loss) from discontinued operations, net of tax	(184		)	(240		)	(372		)	(469		)
Net income (loss)	34,506			13,823			53,418			(15,493		)
Less: net income (loss) attributable to non-controlling interest	1,151			381			2,235			2,117
Net income (loss) attributable to Masonite	$	33,355		$	13,442		$	51,183		$	(17,610	)
Earnings (loss) per common share attributable to Masonite:
Basic	$	1.09		$	0.44		$	1.68		$	(0.58	)
Diluted	$	1.06		$	0.42		$	1.64		$	(0.58	)
Earnings (loss) per common share from continuing operations attributable to Masonite:
Basic	$	1.10		$	0.45		$	1.69		$	(0.57	)
Diluted	$	1.07		$	0.43		$	1.65		$	(0.57	)
Comprehensive income (loss):
Net income (loss)	$	34,506		$	13,823		$	53,418		$	(15,493	)
Other comprehensive income (loss):
Foreign exchange gain (loss)	(13,917		)	9,204			(10,045		)	(25,936		)
Amortization of actuarial net losses	242			220			484			440
Income tax benefit (expense) related to other comprehensive income (loss)	(95		)	(87		)	(191		)	(174		)
Other comprehensive income (loss), net of tax:	(13,770		)	9,337			(9,752		)	(25,670		)
Comprehensive income (loss)	20,736			23,160			43,666			(41,163		)
Less: comprehensive income (loss) attributable to non-controlling interest	1,394			496			2,965			1,547
Comprehensive income (loss) attributable to Masonite	$	19,342		$	22,664		$	40,701		$	(42,710	)

See accompanying notes to the condensed consolidated financial statements.

4

MASONITE INTERNATIONAL CORPORATION

Condensed Consolidated Balance Sheets

(In thousands of U.S. dollars, except share amounts)

(Unaudited)

ASSETS	July 3, 2016			January 3, 2016
Current assets:
Cash and cash equivalents	$	62,370		$	89,187
Restricted cash	12,196			12,645
Accounts receivable, net	273,144			224,976
Inventories, net	233,937			208,393
Prepaid expenses	23,553			21,983
Income taxes receivable	2,797			1,762
Total current assets	607,997			558,946
Property, plant and equipment, net	534,436			534,234
Investment in equity investees	19,663			18,811
Goodwill	124,596			128,170
Intangible assets, net	207,260			225,932
Long-term deferred income taxes	11,047			16,899
Other assets, net	17,522			16,157
Total assets	$	1,522,521		$	1,499,149
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	113,581		$	96,480
Accrued expenses	130,973			136,029
Income taxes payable	1,460			9
Total current liabilities	246,014			232,518
Long-term debt	470,984			468,856
Long-term deferred income taxes	62,018			98,682
Other liabilities	41,521			43,527
Total liabilities	820,537			843,583
Commitments and Contingencies (Note 9)
Equity:
Share capital: unlimited shares authorized, no par value, 31,110,327 and 30,427,865 shares issued and 30,687,350 and 30,427,865 outstanding as of July 3, 2016, and January 3, 2016, respectively	678,411			663,600
Additional paid-in capital	225,544			231,363
Accumulated deficit	(70,816		)	(144,628		)
Accumulated other comprehensive income (loss)	(118,430		)	(107,948		)
Common shares held in treasury: 422,977 shares as of July 3, 2016	(28,489		)	—
Total equity attributable to Masonite	686,220			642,387
Equity attributable to non-controlling interests	15,764			13,179
Total equity	701,984			655,566
Total liabilities and equity	$	1,522,521		$	1,499,149

See accompanying notes to the condensed consolidated financial statements.

5

MASONITE INTERNATIONAL CORPORATION

Condensed Consolidated Statements of Changes in Equity

(In thousands of U.S. dollars, except share amounts)

(Unaudited)

	Common Shares Outstanding		Share Capital			Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Common Shares Held in Treasury			Total Equity Attributable to Masonite			Equity Attributable to Non-controlling Interests			Total Equity
Balances as of December 28, 2014	30,015,321		$	657,292		$	225,918		$	(97,517	)	$	(76,259	)	$	—		$	709,434		$	26,065		$	735,499
Net income (loss)									(47,111		)							(47,111		)	4,462			(42,649		)
Other comprehensive income (loss), net of tax												(31,689		)				(31,689		)	(1,100		)	(32,789		)
Dividends to non-controlling interests																		—			(5,797		)	(5,797		)
Deconsolidation of non-controlling interest																		—			(10,451		)	(10,451		)
Share based compensation expense						13,236												13,236						13,236
Common shares issued for delivery of share based awards	399,198		5,460			(5,460		)										—						—
Common shares withheld to cover income taxes payable due to delivery of share based awards						(2,114		)										(2,114		)				(2,114		)
Common shares issued under employee stock purchase plan	12,913		846			(215		)										631						631
Common shares issued for exercise of warrants	433		2			(2		)										—						—
Balances as of January 3, 2016	30,427,865		$	663,600		$	231,363		$	(144,628	)	$	(107,948	)	$	—		$	642,387		$	13,179		$	655,566
Cumulative effect of new accounting principle									34,376									34,376						34,376
Balances as of January 3, 2016, as adjusted	30,427,865		$	663,600		$	231,363		$	(110,252	)	$	(107,948	)	$	—		$	676,763		$	13,179		$	689,942
Net income (loss)									51,183									51,183			2,235			53,418
Other comprehensive income (loss), net of tax												(10,482		)				(10,482		)	730			(9,752		)
Dividends to non-controlling interests																		—			(380		)	(380		)
Share based compensation expense						8,510												8,510						8,510
Common shares issued for delivery of share based awards	334,353		7,267			(7,267		)										—						—
Common shares withheld to cover income taxes payable due to delivery of share based awards						(4,057		)										(4,057		)				(4,057		)
Common shares issued under employee stock purchase plan	9,126		507			(91		)										416						416
Common shares issued for exercise of warrants	630,904		13,401			(2,914		)										10,487						10,487
Common shares repurchased	(422,977	)													(28,489		)	(28,489		)				(28,489		)
Common shares repurchased and retired	(291,921	)	(6,364		)				(11,747		)							(18,111		)				(18,111		)
Balances as of July 3, 2016	30,687,350		$	678,411		$	225,544		$	(70,816	)	$	(118,430	)	$	(28,489	)	$	686,220		$	15,764		$	701,984

See accompanying notes to the condensed consolidated financial statements.

6

MASONITE INTERNATIONAL CORPORATION

Condensed Consolidated Statements of Cash Flows

(In thousands of U.S. dollars)

(Unaudited)

	Six Months Ended
Cash flows from operating activities:	July 3, 2016			June 28, 2015
Net income (loss)	$	53,418		$	(15,493	)
Adjustments to reconcile net income (loss) to net cash flow provided by (used in) operating activities:
Loss (income) from discontinued operations, net of tax	372			469
Loss (gain) on disposal of subsidiaries	(1,431		)	—
Loss on extinguishment of debt	—			28,046
Depreciation	29,383			29,716
Amortization	12,982			9,986
Share based compensation expense	8,510			5,485
Deferred income taxes	4,173			14,540
Unrealized foreign exchange loss (gain)	1,225			(1,220		)
Share of loss (income) from equity investees, net of tax	(852		)	(595		)
Dividend from equity investee	—			1,440
Pension and post-retirement expense (funding), net	(2,885		)	(2,778		)
Non-cash accruals and interest	1,725			658
Loss (gain) on sale of property, plant and equipment	392			294
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	(51,542		)	(9,276		)
Inventories	(25,215		)	(25,636		)
Prepaid expenses	(1,507		)	(6,281		)
Accounts payable and accrued expenses	28,445			13,062
Other assets and liabilities	(147		)	(2,220		)
Net cash flow provided by (used in) operating activities	57,046			40,197
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment	163			324
Additions to property, plant and equipment	(38,077		)	(17,918		)
Cash used in acquisitions, net of cash acquired	(599		)	—
Restricted cash	449			(3,866		)
Other investing activities	(1,230		)	(1,376		)
Net cash flow provided by (used in) investing activities	(39,294		)	(22,836		)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	390			475,000
Repayments of long-term debt	(374		)	(500,000		)
Payments of long-term debt extinguishment costs	—			(31,691		)
Payment of debt issuance costs	—			(7,159		)
Tax withholding on share based awards	(4,057		)	(609		)
Distributions to non-controlling interests	(380		)	(1,614		)
Proceeds from exercise of common stock warrants	10,487			—
Repurchases of common shares	(46,600		)	—
Net cash flow provided by (used in) financing activities	(40,534		)	(66,073		)
Net foreign currency translation adjustment on cash	(4,035		)	(7,020		)
Increase (decrease) in cash and cash equivalents	(26,817		)	(55,732		)
Cash and cash equivalents, beginning of period	89,187			192,037
Cash and cash equivalents, at end of period	$	62,370		$	136,305

See accompanying notes to the condensed consolidated financial statements.

7

MASONITE INTERNATIONAL CORPORATION

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Business Overview and Significant Accounting Policies

Unless we state otherwise or the context otherwise requires, references to "Masonite," "we," "our," "us" and the "Company" in these notes to the condensed consolidated financial statements refer to Masonite International Corporation and its subsidiaries.

Description of Business

Masonite International Corporation is one of the largest manufacturers of doors in the world, with significant market share in both interior and exterior door products. Masonite operates 64 manufacturing locations in 9 countries and sells doors to customers throughout the world, including the United States, Canada and the United Kingdom.

Basis of Presentation

We prepare these unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments consisting of normal and recurring entries considered necessary for a fair presentation of the results for the interim periods presented have been included. All significant intercompany balances and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. These estimates are based on information available as of the date of the unaudited condensed consolidated financial statements; therefore, actual results could differ from those estimates. Interim results are not necessarily indicative of the results for a full year.

These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2016, as filed with the SEC. There have been no changes in the significant accounting policies from those that were disclosed in the fiscal year 2015 audited consolidated financial statements, other than as noted below.

Our fiscal year is the 52- or 53-week period ending on the Sunday closest to December 31. In a 52-week year, each fiscal quarter consists of 13 weeks. For ease of disclosure, the 13- and 26-week periods are referred to as three- and six-month periods, respectively.

Changes in Accounting Standards and Policies

Adoption of Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, "Improvements to Employee Share-Based Payment Accounting", which amends ASC 718 "Compensation - Stock Compensation". This ASU simplifies several aspects of the accounting for employee share-based award transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the ASU, an entity recognizes all excess tax benefits and tax deficiencies resulting from the exercise or vesting of a share-based award to an employee. It also allows an entity to elect, as an accounting policy, either to continue to estimate forfeitures of share-based awards (as was previously required) or to account for forfeitures when they occur. Additionally, the ASU modifies the current exception to liability classification of an award when an employer uses a net-settlement feature to withhold shares to meet the employer’s minimum statutory tax withholding requirement. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years; early adoption is permitted and varying types of application are required for the different aspects of the standard. We have adopted this guidance as of April 4, 2016. The aspect of the standard dealing with excess tax benefits and tax deficiencies was adopted using the modified-retrospective method, and resulted in an increase to previously-presented retained earnings of $34.4 million as of January 3, 2016. It also resulted in a $6.2 million income tax benefit recorded in the three months ended July 3, 2016; there was no impact on previously-

8

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

presented income tax expense (benefit) for the three months ended April 3, 2016. As a result of the adoption of this standard, we have elected to account for forfeitures when they occur. The forfeitures aspect of the standard and the tax withholding aspect of the standard have each been adopted using a modified retrospective approach and had no impact on any previously-presented amounts. All other aspects of the standard were adopted using a retrospective approach and had no impact on any previously-presented amounts.

In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," which amends ASC 805, "Business Combinations." This ASU eliminates the requirement to retrospectively account for measurement-period adjustments and instead recognize such adjustments in the reporting period in which the adjustments are determined. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and prospective application is required. The adoption of this standard did not have a material impact on the presentation of our financial statements.

In April 2015, the FASB issued ASU 2015-04, "Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets." This ASU provides a practical expedient option to entities that have defined benefit plans and have a fiscal year end that does not coincide with a calendar month end. This ASU allows an entity to elect to measure defined benefit plan assets and obligations using the calendar month-end that is closest to its fiscal year end. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and prospective application is required. The adoption of this standard did not have a material impact on the presentation of our financial statements.

In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis," which amended ASC 810, "Consolidation." This ASU modifies the evaluation of whether limited partnerships are variable interest entities ("VIEs") and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and either full retrospective or modified retrospective application is required at the entity's option. The adoption of this standard did not have a material impact on the presentation of our financial statements.         

Other Recent Accounting Pronouncements not yet Adopted

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which will replace the existing guidance in ASC 840, "Leases." The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements.    

2. Acquisitions and Dispositions

2015 Acquisitions

On October 1, 2015, we completed the acquisition of USA Wood Door, Inc. (“USA Wood Door”), based in Thorofare, New Jersey. We acquired 100% of the equity interests in USA Wood Door for consideration of approximately $13.7 million, net of cash acquired. USA Wood Door is a supplier of architectural and commercial wood doors in the Eastern United States providing door and hardware distributors with machining, resizing and value-added additions to both unfinished and prefinished doors in short lead times. The excess purchase price over the fair value of net assets acquired of $8.9 million was allocated to goodwill and relates to the Architectural segment. The goodwill principally represents the anticipated synergies to be gained from the integration into our existing Architectural door business. Under Section 338 of the Internal Revenue Code, the acquisition was treated as if it was an asset purchase. Generally, the tax basis of the assets will equal the fair market value at the time of the acquisition and the goodwill is deductible for tax purposes. The USA Wood Door acquisition acts as an extension of our distribution network in North America.

9

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

On August 5, 2015, we completed the acquisition of Hickman Industries Limited ("Hickman"), headquartered in Wolverhampton, England, for total consideration of $88.0 million, net of cash acquired. We acquired 100% of the equity interests in Hickman through the purchase of all of the outstanding shares of common stock at the acquisition date. Hickman is a leading supplier of doorkits (similar to fully finished prehung door units) and other millwork in the United Kingdom and their business of providing doorkit solutions to the homebuilder market in the United Kingdom is a natural extension of our existing business in the United Kingdom. The excess purchase price over the fair value of net assets acquired of $18.2 million was allocated to goodwill. The goodwill principally represents anticipated synergies to be gained from the integration into our existing United Kingdom business. This goodwill is not deductible for tax purposes and relates to the Europe segment. The Hickman acquisition complements strategies we are pursuing with our existing United Kingdom business.

On July 23, 2015, we completed the acquisition of Performance Doorset Solutions Limited ("PDS"), headquartered in Lancashire, England, for total consideration of $15.7 million, net of cash acquired. We acquired 100% of the equity interests in PDS through the purchase of all of the outstanding shares of common stock at the acquisition date. PDS is a leading supplier of custom doors and millwork in the United Kingdom that specializes in non-standard product specifications, manufacturing both wood and composite solutions. The excess purchase price over the fair value of net assets acquired of $3.1 million was allocated to goodwill. The goodwill principally represents the future expected value of the operations of the business. This goodwill is not deductible for tax purposes and relates to the Europe segment. The PDS acquisition complements our existing United Kingdom business.

The aggregate consideration paid for acquisitions during 2015 was as follows:

(In thousands)	USA Wood Door			Hickman			PDS			Total 2015 Acquisitions
Accounts Receivable	$	2,235		$	20,870		$	3,000		$	26,105
Inventory	1,677			11,090			1,438			14,205
Property, plant and equipment	2,600			14,057			5,684			22,341
Goodwill	8,921			18,215			3,145			30,281
Intangible assets	—			55,634			6,437			62,071
Accounts payable and accrued expenses	(1,654		)	(23,972		)	(2,218		)	(27,844		)
Other assets and liabilities, net	(81		)	(7,918		)	(1,762		)	(9,761		)
Cash consideration, net of cash acquired	$	13,698		$	87,976		$	15,724		$	117,398

The fair values of intangible assets acquired are based on management’s estimates and assumptions including variations of the income approach, the cost approach and the market approach. Intangible assets acquired from the 2015 acquisitions consist of customer relationships and are being amortized over the weighted average amortization period of 9.6 years and 9.7 years for the Hickman and PDS acquisitions, respectively. The intangible assets are not expected to have any residual value. The gross contractual value of acquired trade receivables was $1.7 million, $21.0 million and $2.6 million for the USA Wood Door, Hickman and PDS acquisitions, respectively.

The following schedule represents the amount of net sales and net income (loss) attributable to Masonite from the 2015 acquisitions which have been included in the condensed consolidated statements of comprehensive income (loss) for the periods indicated subsequent to the acquisition date.

	Three Months Ended July 3, 2016
(In thousands)	USA Wood Door		Hickman		PDS			Total 2015 Acquisitions
Net sales	$	4,877	$	27,585	$	4,416		$	36,878
Net income (loss) attributable to Masonite	1,088		1,171		(210		)	2,049

10

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

	Six Months Ended July 3, 2016
(In thousands)	USA Wood Door		Hickman		PDS			Total 2015 Acquisitions
Net sales	$	9,372	$	53,340	$	8,967		$	71,679
Net income (loss) attributable to Masonite	1,586		3,310		(60		)	4,836

Pro Forma Information

The following unaudited pro forma financial information represents the condensed consolidated financial information as if the acquisitions had been included in our condensed consolidated results beginning on the first day of the fiscal year prior to their respective acquisition dates. The pro forma results have been calculated after adjusting the results of the acquired entities to remove intercompany transactions and transaction costs incurred and to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied on the first day of the fiscal year prior to the respective acquisitions, together with the consequential tax effects. The pro forma results do not reflect any cost savings, operating synergies or revenue enhancements that the combined company may achieve as a result of the acquisitions; the costs to combine the companies' operations; or the costs necessary to achieve these costs savings, operating synergies and revenue enhancements. The pro forma results do not necessarily reflect the actual results of operations of the combined companies' under our ownership and operation.

	Three Months Ended June 28, 2015
(In thousands, except per share amounts)	Masonite		2015 Acquisitions		Historical Sales to 2015 Acquisitions			Pro Forma
Net sales	$	476,428	$	36,925	$	(5,139	)	$	508,214
Net income (loss) attributable to Masonite	13,442		1,719		(931		)	14,230
Basic earnings (loss) per common share	$	0.44						$	0.47
Diluted earnings (loss) per common share	$	0.42						$	0.45

	Six Months Ended June 28, 2015
(In thousands, except per share amounts)	Masonite			2015 Acquisitions		Historical Sales to 2015 Acquisitions			Pro Forma
Net sales	$	910,893		$	73,538	$	(9,377	)	$	975,054
Net income (loss) attributable to Masonite	(17,610		)	3,485		(1,623		)	(15,748		)
Basic earnings (loss) per common share	$	(0.58	)						$	(0.52	)
Diluted earnings (loss) per common share	$	(0.58	)						$	(0.52	)

Dispositions

Romania

On April 22, 2016, we completed the liquidation of our legal entity in Romania. As a result, we recognized a $1.4 million cumulative translation adjustment in loss (gain) on disposal of subsidiaries from accumulated other comprehensive income during the three months ended July 3, 2016.

11

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Africa

On December 22, 2015, following a comprehensive assessment of Masonite (Africa) Limited (“MAL”), our South African subsidiary, the MAL Board of Directors approved a plan to enter into Business Rescue proceedings, the South African equivalent of bankruptcy proceedings in the United States, similar to a Chapter 11 reorganization. As a result of this plan, a Business Rescue Practitioner was appointed to manage the affairs of the business and we no longer maintain operational control over MAL. For this reason, we deconsolidated MAL effective December 22, 2015. During the second quarter of 2016, the Business Rescue Practitioner proposed a business rescue plan that would result in the sale of the business.

Subsequent to deconsolidation, we have used the cost method to account for our equity investment in MAL, which has been reflected as $10.0 million in our condensed consolidated balance sheets as of July 3, 2016, and January 3, 2016, based on the estimated fair value of our portion of MAL’s net assets on the date of deconsolidation. The fair value of the investment in MAL was determined using a discounted future cash flows analysis based upon management's view of the most likely outcomes of the Business Rescue proceedings. The resulting valuation is net of future disposal costs and third party fees, and is subject to the volatility of the South African Rand. This valuation was performed on a non-recurring basis and is categorized as having Level 3 valuation inputs as established by the FASB's Fair Value Framework. The Level 3 unobservable inputs include an estimate of future cash flows for the business.

France

On July 31, 2015, we completed the sale of all of the capital stock of Premdor S.A.S., Masonite’s door business in France, to an investment fund managed by Perceva S.A.S., a Paris-based independent investment firm (the "Buyer"). Pursuant to a stock purchase agreement dated July 16, 2015, the Buyer acquired all of Masonite’s door manufacturing and distribution business in France for nominal consideration. Premdor S.A.S. generated $1.1 million and $3.2 million of losses from continuing operations before income tax expense (benefit) during the three and six months endedJune 28, 2015, respectively.

3. Goodwill and Intangible Assets

Changes in the carrying amount of goodwill were as follows as of the dates indicated:

(In thousands)	North American Residential			Europe			Architectural			Total
December 28, 2014	$	2,891		$	19,008		$	77,300		$	99,199
Goodwill from 2015 acquisitions	—			21,360			8,921			30,281
Foreign exchange fluctuations	(56		)	(1,062		)	(192		)	(1,310		)
January 3, 2016	2,835			39,306			86,029			128,170
Measurement period adjustment	—			—			599			599
Foreign exchange fluctuations	24			(4,420		)	223			(4,173		)
July 3, 2016	$	2,859		$	34,886		$	86,851		$	124,596

During the three months ended July 3, 2016, we recorded a $0.6 million increase in goodwill as a measurement period adjustment relating to the USA Wood Door acquisition, due to finalization of certain income tax-related items.

12

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated:

	July 3, 2016
(In thousands)	Cost		Accumulated Amortization			Translation Adjustment			Net Book Value
Definite life intangible assets:
Customer relationships	$	155,927	$	(56,780	)	$	(11,623	)	$	87,524
Patents	30,344		(18,337		)	(815		)	11,192
Software	30,359		(24,991		)	(180		)	5,188
Other	12,280		(8,609		)	(1,770		)	1,901
	228,910		(108,717		)	(14,388		)	105,805
Indefinite life intangible assets:
Trademarks and tradenames	111,538		—			(10,083		)	101,455
Total intangible assets	$	340,448	$	(108,717	)	$	(24,471	)	$	207,260

	January 3, 2016
(In thousands)	Cost		Accumulated Amortization			Translation Adjustment			Net Book Value
Definite life intangible assets:
Customer relationships	$	155,927	$	(48,025	)	$	(5,648	)	$	102,254
Patents	29,643		(17,168		)	(885		)	11,590
Software	29,830		(23,187		)	(208		)	6,435
Other	12,280		(7,853		)	(1,567		)	2,860
	227,680		(96,233		)	(8,308		)	123,139
Indefinite life intangible assets:
Trademarks and tradenames	111,538		—			(8,745		)	102,793
Total intangible assets	$	339,218	$	(96,233	)	$	(17,053	)	$	225,932

Amortization of intangible assets was $6.3 million and $12.5 million and for the three and six months endedJuly 3, 2016, respectively, and was $4.7 million and $9.4 million for the three and six months endedJune 28, 2015, respectively. Amortization expense is classified within selling, general and administration expenses in the condensed consolidated statements of comprehensive income (loss).

The estimated future amortization of intangible assets with definite lives as of July 3, 2016, is as follows:

(In thousands)
Fiscal year:
2016 (remaining six months)	$	11,188
2017	20,968
2018	15,789
2019	14,694
2020	12,333

13

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

4. Accounts Receivable

Our customers consist mainly of wholesale distributors, dealers, homebuilders and retail home centers. Our ten largest customers accounted for 59.6% and 54.1% of total accounts receivable as of July 3, 2016, and January 3, 2016, respectively. Our two largest customers, The Home Depot, Inc. and Lowe's Companies, Inc., individually accounted for more than 10% of the consolidated gross accounts receivable balance as of July 3, 2016, and January 3, 2016. No other individual customers accounted for greater than 10% of consolidated gross accounts receivable balance at either July 3, 2016, or January 3, 2016. The allowance for doubtful accounts balance was $1.6 million and $3.1 million as of July 3, 2016, and January 3, 2016, respectively.

We maintain accounts receivable sales programs with third parties (the "AR Sales Programs"). Under the AR Sales Programs, we can transfer ownership of eligible trade accounts receivable of certain customers. Receivables are sold outright to third parties who assume the full risk of collection, without recourse to us in the event of a loss. Transfers of receivables under these programs are accounted for as sales. Proceeds from the transfers reflect the face value of the accounts receivable less a discount. Receivables sold under the AR Sales Programs are excluded from trade accounts receivable in the condensed consolidated balance sheets and are included in cash flows from operating activities in the condensed consolidated statements of cash flows. The discounts on the sales of trade accounts receivable sold under the AR Sales Programs were not material for any of the periods presented and were recorded in selling, general and administration expense within the condensed consolidated statements of comprehensive income (loss).

5. Inventories

The amounts of inventory on hand were as follows as of the dates indicated:

(In thousands)	July 3, 2016			January 3, 2016
Raw materials	$	167,059		$	145,856
Finished goods	72,833			69,045
Provision for obsolete or aged inventory	(5,955		)	(6,508		)
Inventories, net	$	233,937		$	208,393

6. Property, Plant and Equipment

The carrying amounts of our property, plant and equipment and accumulated depreciation were as follows as of the dates indicated:

(In thousands)	July 3, 2016			January 3, 2016
Land	$	25,306		$	25,316
Buildings	163,161			155,709
Machinery and equipment	570,216			551,264
Property, plant and equipment, gross	758,683			732,289
Accumulated depreciation	(224,247		)	(198,055		)
Property, plant and equipment, net	$	534,436		$	534,234

Total depreciation expense was $14.8 million and $29.4 million in the three and six months endedJuly 3, 2016, respectively, and $14.4 million and $29.7 million in the three and six months endedJune 28, 2015, respectively. Depreciation expense is included primarily within cost of goods sold in the condensed consolidated statements of comprehensive income (loss).

14

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

On June 6, 2014, an explosion occurred in the power plant of our Estcourt mill in South Africa which reduced the site’s ability to generate steam and heat the kilns which, in turn, required the production lines to cease operating for several weeks. We were insured against property loss and business interruption, and we recognized partial payments of $1.2 million in business interruption insurance proceeds during the three and six months ended June 28, 2015 . These proceeds were recorded as a reduction to selling, general and administration expense in the condensed consolidated statements of comprehensive income (loss).

7. Long-Term Debt

(In thousands)	July 3, 2016			January 3, 2016
5.625% senior unsecured notes due 2023	$	475,000		$	475,000
Debt issuance costs for 2023 Notes	(5,813		)	(6,232		)
Capital lease obligations	1,407			88
Other long-term debt	390			—
Total long-term debt	$	470,984		$	468,856

Interest expense related to our consolidated indebtedness under senior unsecured notes was $6.9 million and $13.9 million for the three and six months endedJuly 3, 2016, respectively, and $6.7 million and $17.8 million for the three and six months endedJune 28, 2015, respectively.

5.625% Senior Notes due 2023

On March 23, 2015, we issued $475.0 million aggregate principal senior unsecured notes (the "2023 Notes"). The 2023 Notes were issued in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to buyers outside the United States pursuant to Regulation S under the Securities Act. The 2023 Notes were issued without registration rights and are not listed on any securities exchange. The 2023 Notes were issued at par and bear interest at 5.625% per annum, payable in cash semiannually in arrears on March 15 and September 15 of each year and are due March 15, 2023. We received net proceeds of $467.9 million after deducting $7.1 million of debt issuance costs. The debt issuance costs were capitalized as a reduction to the carrying value of debt and are being accreted to interest expense over the term of the 2023 Notes using the effective interest method. The net proceeds from the 2023 Notes, together with available cash balances, were used to redeem $500.0 million aggregate principal prior senior unsecured notes due 2021 (the "2021 Notes") and to pay related premiums, fees and expenses. Under the terms of the indenture governing the 2021 Notes, we paid the applicable premium, as described in the indenture, of $31.7 million. Additionally, the unamortized premium of $11.5 million and unamortized debt issuance costs of $7.8 million relating to the 2021 Notes were written off in conjunction with their extinguishment. The resulting loss on extinguishment of debt was $28.0 million and is recorded as part of income (loss) from continuing operations before income tax expense (benefit) in the condensed consolidated statements of comprehensive income (loss). Additionally, the cash payment of interest accrued to, but not including, the redemption date was accelerated to the redemption date.    

We may redeem the 2023 Notes, in whole or in part, at any time prior to March 15, 2018, at a price equal to 100% of the principal amount plus the applicable premium, plus accrued and unpaid interest, if any, to the date of redemption. The applicable premium means, with respect to a note at any date of redemption, the greater of (i) 1.00% of the then-outstanding principal amount of such note and (ii) the excess of (a) the present value at such date of redemption of (1) the redemption price of such note at March 15, 2018, plus (2) all remaining required interest payments due on such note through such date (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the Treasury Rate, as described in the indenture, plus 50 basis points, over (b) the principal amount of such note on such redemption date. We may also redeem the 2023 Notes, in whole or in part, at any time on or after March 15, 2018, at the applicable redemption prices specified under the indenture governing the 2023 Notes, plus accrued and unpaid interest, if any, to the date of redemption. If we experience certain changes of control or consummate certain asset sales and do not reinvest the net proceeds, we must offer to repurchase all of the 2023 Notes at a purchase price of 101.00% of their principal amount, plus accrued and unpaid interest, if any, to the repurchase date.

15

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Obligations under the 2023 Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries.

The indenture governing the 2023 Notes contains restrictive covenants that, among other things, limit our ability and the ability of our subsidiaries to: (i) incur additional debt and issue disqualified or preferred stock, (ii) make restricted payments, (iii) sell assets, (iv) create or permit restrictions on the ability of our restricted subsidiaries to pay dividends or make other distributions to the parent company, (v) create or incur certain liens, (vi) enter into sale and leaseback transactions, (vii) merge or consolidate with other entities and (viii) enter into transactions with affiliates. The foregoing limitations are subject to exceptions as set forth in the indenture governing the 2023 Notes. In addition, if in the future the 2023 Notes have an investment grade rating from at least two nationally recognized statistical rating organizations, certain of these covenants will be replaced with a less restrictive covenant.

The indenture governing the 2023 Notes contains customary events of default (subject in certain cases to customary grace and cure periods). As of July 3, 2016, and January 3, 2016, we were in compliance with all covenants under the indenture governing the 2023 Notes.

ABL Facility

On April 9, 2015, we and certain of our subsidiaries amended and restated our asset-based revolving credit facility (the "ABL Facility") in order to extend the maturity date of the ABL Facility and amend certain other provisions. The amended and restated ABL Facility increased the revolving commitments to $150.0 million from $125.0 million and extended the final maturity date to April 9, 2020, from May 17, 2016. The borrowing base is calculated based on a percentage of the value of selected U.S. and Canadian accounts receivable and inventory, less certain ineligible amounts.

Obligations under the ABL Facility are secured by a first priority security interest in substantially all of the current assets of Masonite and our subsidiaries. In addition, obligations under the ABL Facility are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries.

Borrowings under the ABL Facility bear interest at a rate equal to, at our option, (i) the Base Rate, Canadian Prime Rate or Canadian Base Rate (each as defined in the Amended and Restated Credit Agreement) plus a margin ranging from 0.25%to 0.75% per annum, or (ii) the Eurodollar Base Rate or BA Rate (each as defined in the Amended and Restated Credit Agreement), plus a margin ranging from 1.25% to 1.75% per annum.

In addition to paying interest on any outstanding principal under the ABL Facility a commitment fee is payable on the undrawn portion of the ABL Facility in an amount equal to 0.25% per annum of the average daily balance of unused commitments during each calendar quarter.

The ABL Facility contains various customary representations, warranties and covenants by us that, among other things, and subject to certain exceptions, restrict Masonite's ability and the ability of our subsidiaries to: (i) pay dividends on our common shares and make other restricted payments, (ii) make investments and acquisitions, (iii) engage in transactions with our affiliates, (iv) sell assets, (v) merge and (vi) create liens.

The Amended and Restated Credit Agreement amended the ABL Facility to, among other things, (i) permit us to incur unlimited unsecured debt as long as such debt does not contain covenants or default provisions that are more restrictive than those contained in the ABL Facility, (ii) permit us to incur debt as long as the pro forma secured leverage ratio is less than 4.5 to 1.0, and (iii) add certain additional exceptions and exemptions under the restricted payment, investment and indebtedness covenants (including increasing the amount of certain debt permitted to be incurred under an existing exception). As of July 3, 2016, and January 3, 2016, we were in compliance with all covenants under the credit agreement governing the ABL Facility and there were no amounts outstanding under the ABL Facility.

16

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

8. Share Based Compensation Plans

Share based compensation expense was $4.8 million and $8.5 million for the three and six months endedJuly 3, 2016, respectively, and $3.1 million and $5.5 million for the three and six months endedJune 28, 2015, respectively. As of July 3, 2016, the total remaining unrecognized compensation expense related to share based compensation amounted to $20.2 million, which will be amortized over the weighted average remaining requisite service period of 1.9 years. Share based compensation expense is recognized using a graded-method approach, or to a lesser extent a cliff-vesting approach, depending on the terms of the individual award and is classified within selling, general and administration expenses in the condensed consolidated statements of comprehensive income (loss). All share based awards are settled through issuance of new shares of our common stock. The share based award agreements contain restrictions on sale or transfer other than in limited circumstances. All other transfers would cause the share based awards to become null and void.

Equity Incentive Plan

Prior to July 9, 2012, we had a management equity incentive plan (the "2009 Plan"). The 2009 Plan required granting by June 9, 2012, equity instruments which upon exercise would result in management (excluding directors) owning 9.55% of our common equity (3,554,811 shares) on a fully diluted basis, after giving consideration to the potential exercise of warrants and the equity instruments granted to directors. Under the 2009 Plan, we were required to issue equity instruments to directors that represented 0.90% (335,004 shares) of the common equity on a fully diluted basis. The requirement for issuance to employees was satisfied in June 2012, and the requirement for issuance to directors was satisfied in July 2009. No awards have been granted under the 2009 Plan since May 30, 2012, and no future awards will be granted under the 2009 Plan; however, all outstanding awards under the 2009 Plan will continue to be governed by their existing terms. Aside from shares issuable for outstanding awards, there are no further shares of common stock available for future issuance under the 2009 Plan.

On July 12, 2012, the Board of Directors adopted the Masonite International Corporation 2012 Equity Incentive Plan, which was amended on June 21, 2013, by our Board of Directors and further amended and restated by our Board of Directors on February 23, 2015, and approved by our shareholders on May 12, 2015 (as amended and restated, the "2012 Plan"). The 2012 Plan was adopted because the Board believes awards granted will help to attract, motivate and retain employees and non-employee directors, align employee and stockholder interests and encourage a performance-based culture built on employee stock ownership. The 2012 Plan permits us to offer eligible directors, employees and consultants cash and share-based incentives, including stock options, stock appreciation rights, restricted stock, other share-based awards (including restricted stock units) and cash-based awards. The 2012 Plan is effective for ten years from the date of its adoption. Awards granted under the 2012 Plan are at the discretion of the Human Resources and Compensation Committee of the Board of Directors. The Human Resources and Compensation Committee may grant any award under the 2012 Plan in the form of a performance award. The 2012 Plan may be amended, suspended or terminated by the Board at any time; provided, that any amendment, suspension or termination which impairs the rights of a participant is subject to such participant's consent and; provided further, that certain material amendments are subject to shareholder approval. The aggregate number of common shares that can be issued with respect to equity awards under the 2012 Plan cannot exceed 2,000,000 shares plus the number of shares subject to existing grants under the 2009 Plan that may expire or be forfeited or cancelled. As of July 3, 2016, there were 1,516,247 shares of common stock available for future issuance under the 2012 Plan.

Deferred Compensation Plan

We offer to certain of our employees and directors a Deferred Compensation Plan ("DCP"). The DCP is an unfunded non-qualified deferred compensation plan that permits those certain employees and directors to defer a portion of their compensation to a future time. Eligible employees may elect to defer a portion of their base salary, bonus and/or restricted stock units and eligible directors may defer a portion of their director fees or restricted stock units. All contributions to the DCP on behalf of the participant are fully vested (other than restricted stock unit deferrals which remain subject to the vesting terms of the applicable equity incentive plan) and placed into a grantor trust, commonly referred to as a "rabbi trust." Although we are permitted to make matching contributions under the terms of the DCP, we have not elected to do so. The DCP invests the contributions in diversified securities from a selection of investments and

17

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

the participants choose their investments and may periodically reallocate the assets in their respective accounts. Participants are entitled to receive the benefits in their accounts upon separation of service or upon a specified date, with benefits payable as a single lump sum or in annual installments. All plan investments are categorized as having Level 1 valuation inputs as established by the FASB’s Fair Value Framework.

Assets of the rabbi trust, other than Company stock, are recorded at fair value and included in other assets in the condensed consolidated balance sheets. These assets in the rabbi trust are classified as trading securities and changes in their fair values are recorded in other income (loss) in the condensed consolidated statements of comprehensive income (loss). The liability relating to deferred compensation represents our obligation to distribute funds to the participants in the future and is included in other liabilities in the condensed consolidated balance sheets. As of July 3, 2016, the liability and asset relating to deferred compensation each had a fair value of $3.0 million. Any unfunded gain or loss relating to changes in the fair value of the deferred compensation liability is recognized in selling, general and administration expense in the condensed consolidated statements of comprehensive income (loss). As of July 3, 2016, participation in the deferred compensation plan is limited and no restricted stock awards have been deferred into the deferred compensation plan.

Stock Appreciation Rights

We have granted Stock Appreciation Rights ("SARs") to certain employees under both the 2009 Plan and the 2012 Plan, which entitle the recipient to the appreciation in value of a number of common shares over the exercise price over a period of time, each as specified in the applicable award agreement. The exercise price of any SAR granted may not be less than the fair market value of our common shares on the date of grant. The compensation expense for the SARs is measured based on the fair value of the SARs at the date of grant and is recognized over the requisite service period. The SARs vest over a maximum of three years, have a life of ten years and settle in common shares. We recognize forfeitures of SARs in the period in which they occur.

No SARs vested during the six months endedJuly 3, 2016. The total fair value of SARs vested was $0.4 million in the six months endedJune 28, 2015.

Six Months Ended July 3, 2016	Stock Appreciation Rights		Aggregate Intrinsic Value (in thousands)		Weighted Average Exercise Price		Average Remaining Contractual Life (Years)
Outstanding, beginning of period	891,147		$	36,681	$	20.07	4.9
Granted	121,805				58.37
Exercised	(134,910	)	7,293		14.12
Forfeited	(2,400	)			26.33
Outstanding, end of period	875,642		$	36,008	$	26.28	5.4
Exercisable, end of period	568,917		$	28,550	$	17.22	3.9

Six Months Ended June 28, 2015	Stock Appreciation Rights		Aggregate Intrinsic Value (in thousands)		Weighted Average Exercise Price		Average Remaining Contractual Life (Years)
Outstanding, beginning of period	1,231,468		$	48,516	$	19.59	5.9
Granted	—				—
Exercised	(308,770	)	15,205		16.82
Forfeited	(4,584	)			32.26
Outstanding, end of period	918,114		$	46,400	$	20.26	5.5
Exercisable, end of period	697,577		$	37,727	$	16.72	4.8

18

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

The value of SARs granted in the six months ended July 3, 2016, as determined using the Black-Scholes Merton valuation model, was $2.0 million and is expected to be recognized over the average requisite service period of 2.0 years. Expected volatility is based upon the historical volatility of our public industry peers’ common shares amongst other considerations. The expected term is calculated using the simplified method, due to insufficient exercise activity during recent years as a basis from which to estimate future exercise patterns. The weighted average grant date assumptions used for the SARs granted were as follows for the periods indicated:

	2016 Grants
SAR value (model conclusion)	$	16.78
Risk-free rate	1.6		%
Expected dividend yield	0.0		%
Expected volatility	26.2		%
Expected term (years)	6.0

Restricted Stock Units

We have granted Restricted Stock Units ("RSUs") to directors and certain employees under both the 2009 Plan and the 2012 Plan. The RSUs confer the right to receive shares of our common stock at a specified future date or when certain conditions are met. The compensation expense for the RSUs awarded is based on the fair value of the RSUs at the date of grant and is recognized over the requisite service period. The RSUs vest over a maximum of three years and call for the underlying shares to be delivered no later than 30 days following the vesting date unless the participant is subject to a blackout period. In such case, the shares are to be delivered once the blackout restriction has been lifted. We recognize forfeitures of RSUs in the period in which they occur.

	Six Months Ended
	July 3, 2016				June 28, 2015
	Total Restricted Stock Units Outstanding		Weighted Average Grant Date Fair Value		Total Restricted Stock Units Outstanding		Weighted Average Grant Date Fair Value
Outstanding, beginning of period	526,930		$	49.31	543,373		$	34.56
Granted	283,772		45.74		192,653		61.38
Delivered	(228,090	)			(70,557	)
Withheld to cover (1)	(59,374	)			(9,128	)
Forfeited	(6,659	)			(49,482	)
Outstanding, end of period	516,579		$	58.53	606,859		$	42.75

____________

(1) A portion of the vested RSUs delivered were net share settled to cover statutory requirements for income and other employment taxes, at the individual participant’s election. We remit the equivalent cash to the appropriate taxing authorities. These net share settlements had the effect of share repurchases by us as we reduced and retired the number of shares that would have otherwise been issued as a result of the vesting.

Approximately one-third of the RSUs granted during the six months endedJuly 3, 2016, vest at specified future dates with only service requirements, while the remaining portion of the RSUs vest based on both performance and service requirements. The value of RSUs granted in the six months endedJuly 3, 2016, was $13.0 million and is being recognized over the weighted average requisite service period of 2.6 years. During the six months endedJuly 3, 2016, there were 287,464 RSUs vested at a fair value of $8.4 million.

19

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

Warrants

On June 9, 2009, we issued 5,833,335 warrants, representing the right to purchase our common shares for $55.31 per share, subsequently adjusted to $50.77 per share for the $4.54 per share return of capital in 2011. Of these, 3,333,334 had an expiration date of June 9, 2014 (the "2014 Warrants"), and 2,500,001 had an expiration date of June 9, 2016 (the "2016 Warrants"). During the six months prior to their respective expiration dates, the warrants provided the holders with a cashless exercise option. We have accounted for these warrants as equity instruments.

There were no 2014 Warrants outstanding during any period presented. Activity relating to the 2016 Warrants was as follows for the periods presented:

	Six Months Ended
	July 3, 2016			June 28, 2015
Outstanding, beginning of period	2,497,971			2,500,001
Exercised	(2,496,493		)	—
Forfeited	(1,478		)	—
Outstanding, end of period	—			2,500,001
Cash received for exercise (in thousands)	$	10,487		$	—
Common shares issued	631,023			—

9. Commitments and Contingencies

For lease agreements that provide for escalating rent payments or rent-free occupancy periods, we recognize rent expense on a straight line basis over the non-cancelable lease term and any option renewal period where failure to exercise such option would result in an economic penalty in such amount that renewal appears, at the inception of the lease, to be reasonably assured. The lease term commences on the date when all conditions precedent to our obligation to pay rent are satisfied. The leases contain provisions for renewal ranging from zero to three options of generally five years each. Minimum payments, for the following future periods, under non-cancelable operating leases and service agreements with initial or remaining terms of one year or more consist of the following:

(In thousands)
Fiscal year:
2016 (remaining six months)	$	10,072
2017	19,487
2018	18,064
2019	16,587
2020	14,383
Thereafter	84,433
Total future minimum lease payments	$	163,026

Total rent expense, including non-cancelable operating leases and month-to-month leases, was $6.8 million and $13.2 million for the three and six months endedJuly 3, 2016, respectively, and $6.0 million and $11.7 million for the three and six months endedJune 28, 2015, respectively.

20

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

We have provided customary indemnifications to our landlords under certain property lease agreements for claims by third parties in connection with their use of the premises. We also have provided routine indemnifications against adverse effects related to changes in tax laws and patent infringements by third parties. The maximum amount of these indemnifications cannot be reasonably estimated due to their nature. In some cases, we have recourse against other parties to mitigate the risk of loss from these indemnifications. Historically, we have not made any significant payments relating to such indemnifications.

From time to time, we are involved in various claims and legal actions. In the opinion of management, the ultimate disposition of these matters, individually and in the aggregate, will not have a material effect on our condensed consolidated financial statements, results of operations or liquidity.

10. Restructuring Costs

Restructuring costs were not material in the three or six months ended July 3, 2016. The following table summarizes the restructuring charges recorded for the periods indicated:

	Three Months Ended June 28, 2015
(In thousands)	North American Residential		Europe		Corporate & Other		Total
2015 Plan	$	—	$	415	$	519	$	934
2013 Plan	2		52		—		54
Total Restructuring Costs	$	2	$	467	$	519	$	988

	Six Months Ended June 28, 2015
(In thousands)	North American Residential		Europe		Corporate & Other		Total
2015 Plan	$	—	$	2,102	$	1,143	$	3,245
2013 Plan	6		93		—		99
Total Restructuring Costs	$	6	$	2,195	$	1,143	$	3,344

	Cumulative Amount Incurred Through July 3, 2016
(In thousands)	North American Residential		Europe		Corporate & Other		Total
2015 Plan	$	—	$	2,337	$	3,063	$	5,400
2014 Plan	—		—		9,503		9,503
2013 Plan	3,025		2,733		2,157		7,915
2012 and Prior Plans	2,378		12,695		3,609		18,682
Total Restructuring Costs	$	5,403	$	17,765	$	18,332	$	41,500

During 2015, we began implementing a multi-year plan to reorganize and consolidate certain aspects of our global head office (the "2015 Plan"). The 2015 Plan includes the creation of a new shared services function and the rationalization of certain of our European facilities, including related headcount reductions. The 2015 Plan was implemented in response to the need for more effective business processes enabled by the planned implementation of our new enterprise resource planning system as well as ongoing weak market conditions in Africa and Europe outside of the United Kingdom. Costs associated with the 2015 Plan include severance and closure charges and are substantially completed. As of July 3, 2016, we do not expect to incur any material future charges relating to the 2015 Plan.

21

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

On August 20, 2014, the Board of Directors of Masonite Israel Ltd. ("Israel"), one of our wholly-owned subsidiaries, decided to voluntarily seek a Stay of Proceedings from the Israeli courts in an attempt to restructure the business (the "2014 Plan"). The court filing was made on August 21, 2014, and the court appointed a trustee to oversee the operation of the business and to attempt to restructure it. The action to seek court protection followed a comprehensive evaluation of the alternatives for the business, including an organized sale process that was ultimately unsuccessful. We determined that the subsidiary should be deconsolidated at that time, as it had become subject to the control of a court. We have had and will continue to have no continuing involvement with Israel subsequent to August 21, 2014, and Israel will not be considered a related party. As of July 3, 2016, pending the ultimate resolution of the Stay of Proceedings, we do not anticipate any material future charges related to the 2014 Plan.

During 2013, we began implementing plans to rationalize certain of our facilities, including related headcount reductions, in Canada due to synergy opportunities related to recent acquisitions in the residential interior wood door markets. We have also rationalized certain of our operations, including related headcount reductions, in Ireland, South Africa and Israel in order to respond to declines in demand in international markets. Additionally, the decision was made to discontinue sales into the Polish market subsequent to the decision to cease manufacturing operations in 2012 (collectively, the "2013 Plan"). Costs associated with the 2013 Plan include severance and closure charges, including impairment of certain property, plant and equipment, and are substantially completed. As of July 3, 2016, we do not expect to incur any material future charges for the 2013 Plan.

Prior years’ restructuring costs relate to the closure of certain of our U.S. manufacturing facilities due to the start-up of our highly automated interior door slab assembly plant in Denmark, South Carolina, synergy opportunities related to acquisitions in the architectural interior wood door market and footprint optimization efforts resulting from declines in demand in specific markets, primarily in Europe. In response to the decline in demand, we reviewed the required levels of production and reduced the workforce and plant capacity accordingly, resulting in severance and closure charges. These actions were taken in order to rationalize capacity with existing and forecasted market demand conditions. The restructuring plans initiated in 2012 and prior years (the "2012 and Prior Plans") are substantially completed, although cash payments are expected to continue through 2019, primarily related to lease payments at closed facilities. As of July 3, 2016, we do not expect to incur any future charges for the 2012 and Prior Plans.

The changes in the accrual for restructuring by activity were as follows for the periods indicated:

(In thousands)	January 3, 2016		Severance			Closure Costs		Cash Payments		July 3, 2016
2015 Plan	$	774	$	(111	)	$	27	$	449	$	241
2014 Plan	442		—			—		16		426
2013 Plan	316		—			—		316		—
2012 and Prior Plans	858		—			—		286		572
Total	$	2,390	$	(111	)	$	27	$	1,067	$	1,239

(In thousands)	December 28, 2014		Severance		Closure Costs		Cash Payments		June 28, 2015
2015 Plan	$	—	$	1,911	$	1,334	$	2,485	$	760
2014 Plan	839		—		—		319		520
2013 Plan	341		—		99		118		322
2012 and Prior Plans	1,153		—		—		326		827
Total	$	2,333	$	1,911	$	1,433	$	3,248	$	2,429

22

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

11. Income Taxes

Income tax expense (benefit) for income taxes consists of the following:

	Three Months Ended					Six Months Ended
(In thousands)	July 3, 2016			June 28, 2015		July 3, 2016		June 28, 2015
Current	$	3,050		$	2,238	$	4,892	$	3,737
Deferred	(195		)	12,775		4,173		14,540
Income tax expense (benefit)	$	2,855		$	15,013	$	9,065	$	18,277

The effective tax rate differs from the Canadian statutory rate of 26.6% primarily due to changes in our valuation allowances, tax exempt income, and mix of earnings in foreign jurisdictions which are subject to tax rates that differ from the Canadian statutory rate.

We currently have deferred tax assets in certain jurisdictions resulting from net operating losses and other deductible temporary differences, which will reduce taxable income in these jurisdictions in future periods. We have determined that a valuation allowance of $43.7 million and $40.9 million was required for our deferred tax assets as of July 3, 2016, and January 3, 2016, respectively. A valuation allowance has been established on deferred tax assets resulting from net operating loss carry forwards and other carry forward attributes primarily in Canada, Chile, India, Mexico and Luxembourg. We expect to maintain valuation allowances on deferred tax assets arising in these jurisdictions until a sustained level of income is reached.

12. Supplemental Cash Flow Information

Certain cash and non-cash transactions were as follows for the periods indicated:

	Six Months Ended
(In thousands)	July 3, 2016		June 28, 2015
Transactions involving cash:
Interest paid	$	13,493	$	19,951
Interest received	137		340
Income taxes paid	4,918		3,538
Income tax refunds	402		9
Non-cash transactions:
Property, plant and equipment additions in accounts payable	2,848		3,864

23

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

13. Segment Information

During the first quarter of 2016, we changed our reportable segments to align with changes in how we manage our business, review operating performance and allocate resources as a result of the deconsolidation of Africa and other internal reporting changes. All prior period information was recast to reflect this change. Our reportable segments are organized and managed principally by end market: North American Residential, Europe and Architectural. The North American Residential reportable segment is the aggregation of the Wholesale and Retail operating segments. The Europe reportable segment is the aggregation of the United Kingdom, Central Eastern Europe and France (prior to disposal) operating segments. The Architectural reportable segment consists solely of the Architectural operating segment. The Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments which were not aggregated into any reportable segment, including the historical results of our Africa operating segment. Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors.

Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Beginning with the third quarter of 2015, we revised our calculation of Adjusted EBITDA to separately exclude loss (gain) on disposal of subsidiaries. The revision to this definition had no impact on our reported Adjusted EBITDA for the three or six months ended June 28, 2015. Adjusted EBITDA (as revised) is defined as net income (loss) attributable to Masonite adjusted to exclude the following items:

• depreciation;

• amortization;

• share based compensation expense;

• loss (gain) on disposal of property, plant and equipment;

• registration and listing fees;

• restructuring costs;

• asset impairment;

• loss (gain) on disposal of subsidiaries;

• interest expense (income), net;

• loss on extinguishment of debt;

• other expense (income), net;

• income tax expense (benefit);

• loss (income) from discontinued operations, net of tax; and

• net income (loss) attributable to non-controlling interest.

24

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indenture governing the 2023 Notes and the credit agreement governing the ABL Facility. Adjusted EBITDA is used to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation. Intersegment transfers are negotiated on an arm’s length basis, using market prices. Certain information with respect to segments is as follows for the periods indicated:

(In thousands)	Three Months Ended July 3, 2016
(In thousands)	North American Residential			Europe			Architectural			Corporate & Other			Total
Net sales	$	349,929		$	83,559		$	81,592		$	5,951		$	521,031
Intersegment sales	(1,756		)	(1,344		)	(3,946		)	—			(7,046		)
Net sales to external customers	$	348,173		$	82,215		$	77,646		$	5,951		$	513,985
Adjusted EBITDA	$	55,666		$	12,839		$	7,672		$	(7,661	)	$	68,516

(In thousands)	Three Months Ended June 28, 2015
(In thousands)	North American Residential			Europe		Architectural			Corporate & Other			Total
Net sales	$	305,826		$	77,074	$	78,488		$	18,450		$	479,838
Intersegment sales	(933		)	—		(2,477		)	—			(3,410		)
Net sales to external customers	$	304,893		$	77,074	$	76,011		$	18,450		$	476,428
Adjusted EBITDA	$	46,713		$	8,053	$	8,185		$	(3,894	)	$	59,057

(In thousands)	Six Months Ended July 3, 2016
(In thousands)	North American Residential			Europe			Architectural			Corporate & Other			Total
Net sales	$	680,545		$	164,166		$	157,901		$	12,424		$	1,015,036
Intersegment sales	(3,643		)	(1,360		)	(6,743		)	—			(11,746		)
Net sales to external customers	$	676,902		$	162,806		$	151,158		$	12,424		$	1,003,290
Adjusted EBITDA	$	107,041		$	22,957		$	12,103		$	(15,344	)	$	126,757

(In thousands)	Six Months Ended June 28, 2015
(In thousands)	North American Residential			Europe			Architectural			Corporate & Other			Total
Net sales	$	580,467		$	152,177		$	147,878		$	37,698		$	918,220
Intersegment sales	(2,306		)	(78		)	(4,943		)	—			(7,327		)
Net sales to external customers	$	578,161		$	152,099		$	142,935		$	37,698		$	910,893
Adjusted EBITDA	$	76,060		$	14,622		$	12,215		$	(6,052	)	$	96,845

25

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

A reconciliation of our consolidated Adjusted EBITDA to net income (loss) attributable to Masonite is set forth as follows for the periods indicated:

	Three Months Ended						Six Months Ended
(In thousands)	July 3, 2016			June 28, 2015			July 3, 2016			June 28, 2015
Adjusted EBITDA	$	68,516		$	59,057		$	126,757		$	96,845
Less (plus):
Depreciation	14,813			14,410			29,383			29,716
Amortization	6,518			4,975			12,982			9,986
Share based compensation expense	4,782			3,106			8,510			5,485
Loss (gain) on disposal of property, plant and equipment	260			350			392			294
Restructuring costs	(103		)	988			(84		)	3,344
Loss (gain) on disposal of subsidiaries	(1,431		)	—			(1,431		)	—
Interest expense (income), net	6,933			6,787			14,165			18,540
Loss on extinguishment of debt	—			—			—			28,046
Other expense (income), net	(801		)	(635		)	(15		)	(1,819		)
Income tax expense (benefit)	2,855			15,013			9,065			18,277
Loss (income) from discontinued operations, net of tax	184			240			372			469
Net income (loss) attributable to non-controlling interest	1,151			381			2,235			2,117
Net income (loss) attributable to Masonite	$	33,355		$	13,442		$	51,183		$	(17,610	)

14. Fair Value of Financial Instruments

The carrying amounts of our cash and cash equivalents, restricted cash, accounts receivable, income taxes receivable, accounts payable, accrued expenses and income taxes payable approximate fair value because of the short-term maturity of those instruments. The estimated fair value of the 2023 Notes as of July 3, 2016, and January 3, 2016, was $489.4 million and $484.3 million, respectively, compared to a carrying value of $469.2 million and $468.8 million, respectively. This estimate is based on market quotes and calculations based on current market rates available to us and is categorized as having Level 2 valuation inputs as established by the FASB’s Fair Value Framework. Market quotes used in these calculations are based on bid prices for our debt instruments and are obtained from and corroborated with multiple independent sources. The market quotes obtained from independent sources are within the range of management’s expectations.

26

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

15. Earnings Per Share

Basic earnings per share ("EPS") is calculated by dividing earnings attributable to Masonite by the weighted-average number of our common shares outstanding during the period. Diluted EPS is calculated by dividing earnings attributable to Masonite by the weighted-average number of common shares plus the incremental number of shares issuable from non-vested and vested RSUs, SARs and warrants outstanding during the period.

(In thousands, except share and per share information)	Three Months Ended						Six Months Ended
	July 3, 2016			June 28, 2015			July 3, 2016			June 28, 2015
Net income (loss) attributable to Masonite	$	33,355		$	13,442		$	51,183		$	(17,610	)
Less: income (loss) from discontinued operations, net of tax	(184		)	(240		)	(372		)	(469		)
Income (loss) from continuing operations attributable to Masonite	$	33,539		$	13,682		$	51,555		$	(17,141	)
Shares used in computing basic earnings per share	30,577,589			30,244,869			30,536,282			30,151,182
Effect of dilutive securities:
Incremental shares issuable under share compensation plans and warrants	754,075			1,448,955			737,480			—
Shares used in computing diluted earnings per share	31,331,664			31,693,824			31,273,762			30,151,182
Basic earnings (loss) per common share attributable to Masonite:
Continuing operations attributable to Masonite	$	1.10		$	0.45		$	1.69		$	(0.57	)
Discontinued operations attributable to Masonite, net of tax	(0.01		)	(0.01		)	(0.01		)	(0.01		)
Total Basic earnings per common share attributable to Masonite	$	1.09		$	0.44		$	1.68		$	(0.58	)
Diluted earnings (loss) per common share attributable to Masonite:
Continuing operations attributable to Masonite	$	1.07		$	0.43		$	1.65		$	(0.57	)
Discontinued operations attributable to Masonite, net of tax	(0.01		)	(0.01		)	(0.01		)	(0.01		)
Total Diluted earnings per common share attributable to Masonite	$	1.06		$	0.42		$	1.64		$	(0.58	)
Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share:
Warrants	—			—			—			2,500,001
Stock appreciation rights	—			—			—			420,137
Restricted stock units	—			—			—			415,113

The weighted average number of shares outstanding utilized for the diluted EPS calculation contemplates the exercise of all currently outstanding SARs and warrants and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. For the six months ended June 28, 2015, no potential common shares relating to our equity awards were included in the computation of diluted loss per share, as their effect would have been anti-dilutive given our net loss position in that period.

27

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

16. Other Comprehensive Income and Accumulated Other Comprehensive Income

A rollforward of the components of accumulated other comprehensive income (loss) is as follows for the periods indicated:

	Three Months Ended						Six Months Ended
(In thousands)	July 3, 2016			June 28, 2015			July 3, 2016			June 28, 2015
Accumulated foreign exchange gains (losses), beginning of period	$	(86,726	)	$	(91,928	)	$	(90,111	)	$	(57,473	)
Foreign exchange gain (loss)	(12,486		)	9,204			(8,614		)	(25,936		)
Cumulative translation adjustment recognized upon deconsolidation of subsidiary	(1,431		)	—			(1,431		)	—
Less: foreign exchange gain (loss) attributable to non-controlling interest	243			115			730			(570		)
Accumulated foreign exchange gains (losses), end of period	(100,886		)	(82,839		)	(100,886		)	(82,839		)
Accumulated pension and other post-retirement adjustments, beginning of period	(17,691		)	(18,653		)	(17,837		)	(18,786		)
Amortization of actuarial net losses	242			220			484			440
Income tax benefit (expense) on amortization of actuarial net losses	(95		)	(87		)	(191		)	(174		)
Accumulated pension and other post-retirement adjustments	(17,544		)	(18,520		)	(17,544		)	(18,520		)
Accumulated other comprehensive income (loss)	$	(118,430	)	$	(101,359	)	$	(118,430	)	$	(101,359	)
Other comprehensive income (loss), net of tax	$	(13,770	)	$	9,337		$	(9,752	)	$	(25,670	)
Less: other comprehensive income (loss) attributable to non-controlling interest	243			115			730			(570		)
Other comprehensive income (loss) attributable to Masonite	$	(14,013	)	$	9,222		$	(10,482	)	$	(25,100	)

Actuarial net losses are reclassified out of accumulated other comprehensive income (loss) into cost of goods sold in the condensed consolidated statements of comprehensive income (loss).

28

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)

(Unaudited)

17. Variable Interest Entity

As of July 3, 2016, and January 3, 2016, we held an interest in one variable interest entity ("VIE"), Magna Foremost Sdn Bhd, which is located in Bintulu, Malaysia. The VIE is integrated into our supply chain and manufactures door facings. We are the primary beneficiary of the VIE via the terms of the existing operating principles with the VIE. As primary beneficiary via the operating principles, we receive a disproportionate amount of earnings on sales to third parties in relation to our voting interest, and as a result, receive a majority of the VIE’s residual returns. Sales to third parties did not have a material impact on our condensed consolidated financial statements. We also have the power to direct activities of the VIE that most significantly impact the entity’s economic performance. As its primary beneficiary, we have consolidated the results of the VIE. Our net cumulative investment in the VIE was comprised of the following as of the dates indicated:

(In thousands)	July 3, 2016			January 3, 2016
Current assets	$	11,377		$	9,987
Property, plant and equipment, net	14,480			15,638
Long-term deferred income taxes	8,288			9,121
Other assets, net	1,753			2,270
Current liabilities	(2,104		)	(5,133		)
Other long-term liabilities	(3,179		)	(2,944		)
Non-controlling interest	(5,519		)	(4,981		)
Net assets of the VIE consolidated by Masonite	$	25,096		$	23,958

Current assets include $6.3 million and $2.1 million of cash and cash equivalents as of July 3, 2016, and January 3, 2016, respectively. Assets recognized as a result of consolidating this VIE do not represent additional assets that could be used to satisfy claims against our general assets. Furthermore, liabilities recognized as a result of consolidating these entities do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIE.

18. Subsequent Event

Africa

On August 10, 2016, MAL announced the closing of the transaction proposed as part of the business rescue plan by the Business Rescue Practitioner. It is anticipated that the first payment of 30 Rand per share will be made to shareholders on August 29, 2016, and that a further payment will be made within 60 days thereafter. Masonite owns 5.6 million shares of MAL.

29

MASONITE INTERNATIONAL CORPORATION

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

The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is based upon accounting principles generally accepted in the United States of America and discusses the financial condition and results of operations for Masonite International Corporation for the three and six months endedJuly 3, 2016, and June 28, 2015. In this MD&A, "Masonite," "we," "us," "our" and the "Company" refer to Masonite International Corporation and its subsidiaries.

This discussion should be read in conjunction with (i) the unaudited condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q and (ii) the annual audited consolidated financial statements, including the accompanying notes and MD&A, which are included in our Annual Report on Form 10-K for the year ended January 3, 2016. The following discussion should also be read in conjunction with the disclosure under "Special Note Regarding Forward Looking Statements" elsewhere in this Quarterly Report on Form 10-Q. Our actual results could differ materially from the forward-looking statements as a result of these risks and uncertainties. Certain prior year amounts have been reclassified to conform to the current basis of presentation.

Overview

We are a leading global designer, manufacturer and distributor of interior and exterior doors for the new construction and repair, renovation and remodeling sectors of the residential and the non-residential building construction markets. Since 1925, we have provided our customers with innovative products and superior service at compelling values. In order to better serve our customers and create sustainable competitive advantages, we focus on developing innovative products, advanced manufacturing capabilities and technology-driven sales and service solutions.

We market and sell our products to remodeling contractors, builders, homeowners, retailers, dealers, lumberyards, commercial and general contractors and architects through well-established wholesale, retail and direct distribution channels as part of our cross-merchandising strategy. Customers are provided a broad product offering of interior and exterior doors and entry systems at various price points. We manufacture a broad line of interior doors, including residential molded, flush, stile and rail, louver and specially-ordered commercial and architectural doors; door components for internal use and sale to other door manufacturers; and exterior residential steel, fiberglass and wood doors and entry systems

We operate 64 manufacturing and distribution facilities in 9 countries in North America, South America, Europe and Asia, which are strategically located to serve our customers through multiple distribution channels. These distribution channels include: (i) direct distribution to retail home center customers and homebuilders; (ii) one-step distribution that sells directly to homebuilders and contractors; and (iii) two-step distribution through wholesale distributors. For retail home center customers, numerous Dorfab facilities provide value-added fabrication and logistical services, including pre-finishing and store delivery of pre-hung interior and exterior doors. We believe our ability to provide: (i) a broad product range; (ii) frequent, rapid, on-time and complete delivery; (iii) consistency in products and merchandising; (iv) national service; and (v) special order programs enables retail customers to increase comparable store sales and helps to differentiate us from our competitors. We believe investments in innovative new product manufacturing and distribution capabilities, coupled with an ongoing commitment to operational excellence, provide a strong platform for future growth.

Our reportable segments are organized and managed principally by end market: North American Residential, Europe and Architectural. In the six months endedJuly 3, 2016, we generated net sales of $676.9 million or 67.5%, $162.8 million or 16.2% and $151.2 million or 15.1% in our North American Residential, Europe and Architectural segments, respectively. See "Components of Results of Operations - Segment Information" below for a description of our reportable segment change.

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Key Factors Affecting Our Results of Operations

Product Demand

There are numerous factors that influence overall market demand for our products. Demand for new homes, home improvement products and other building construction products have a direct impact on our financial condition and results of operations. Demand for our products may be impacted by changes in United States, Canadian, European, Asian or other global economic conditions, including inflation, deflation, interest rates, availability of capital, consumer spending rates, energy availability and costs, and the effects of governmental initiatives to manage economic conditions. Additionally, trends in residential new construction, repair, renovation and remodeling and architectural building construction may directly impact our financial performance. Accordingly, the following factors may have a direct impact on our business in the countries and regions in which our products are sold:

• the strength of the economy;

• the amount and type of residential and commercial construction;

• housing sales and home values;

• the age of existing home stock, home vacancy rates and foreclosures;

• commercial building occupancy rates;

• increases in the cost of raw materials or any shortage in supplies;

• the availability and cost of credit;

• employment rates and consumer confidence; and

• demographic factors such as immigration and migration of the population and trends in household formation.

Additionally, the June 2016 referendum in the United Kingdom in which voters approved the United Kingdom's exit from the European Union has created uncertainty in European demand, particularly in the United Kingdom, which could have a material adverse effect on the demand for our products in the foreseeable future.

Product Pricing and Mix

The building products industry is highly competitive and we therefore face pressure on sales prices of our products. In addition, our competitors may adopt more aggressive sales policies and devote greater resources to the development, promotion and sale of their products than we do, which could result in a loss of customers. Our business in general is subject to changing consumer and industry trends, demands and preferences. Trends within the industry change often and our failure to anticipate, identify or quickly react to changes in these trends could lead to, among other things, rejection of a new product line and reduced demand and price reductions for our products, which could materially adversely affect us. Changes in consumer preferences may also lead to increased demand for our lower margin products relative to our higher margin products, which could reduce our future profitability.

Business Wins and Losses

Our customers consist mainly of wholesalers and retail home centers. In fiscal year 2015, our top ten customers together accounted for approximately 39% of our net sales and our top customer, The Home Depot, Inc. accounted for approximately 16% of our net sales. Net sales from customers that have accounted for a significant portion of our net sales in past periods, individually or as a group, may not continue in future periods, or if continued, may not reach or exceed historical levels in any period. Certain customers perform periodic product line reviews to assess their product offerings, which have, on past occasions, led to business wins and losses. In addition, as a result of competitive bidding processes, we may not be able to increase or maintain the margins at which we sell our products to our customers.

Organizational Restructuring

During 2015, we began implementing a multi-year plan to reorganize and consolidate certain aspects of our global head office (the "2015 Plan"). The 2015 Plan includes the creation of a new shared services function and the rationalization of certain of our European facilities, including related headcount reductions. The 2015 Plan was implemented in response to the need for more effective business processes enabled by the planned implementation of our

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new enterprise resource planning system as well as ongoing weak market conditions in Africa and Europe outside of the United Kingdom. Costs associated with the 2015 Plan include severance and closure charges and are substantially completed. As of July 3, 2016, we do not expect to incur any material future charges relating to the 2015 Plan. Once completed, the 2015 Plan is estimated to increase our annual earnings and cash flows by approximately $6 million.

Foreign Exchange Rate Fluctuation

Our financial results may be adversely affected by fluctuating exchange rates. In the six months endedJuly 3, 2016, and June 28, 2015, approximately 34% and 39% of our net sales were generated outside of the United States, respectively. In addition, a significant percentage of our costs during the same period were not denominated in U.S. dollars. For example, for most of our manufacturing and distribution facilities, the prices for a significant portion of our raw materials are quoted in the domestic currency of the country where the facility is located or other currencies that are not U.S. dollars. We also have substantial assets outside the United States. Furthermore, there has been, and may continue to be, volatility in currency exchange rates as a result of the June 2016 referendum in the United Kingdom in which voters approved the United Kingdom's exit from the European Union. As a result, the volatility in the price of the U.S. dollar has exposed, and in the future may continue to expose, us to currency exchange risks. Also, since our financial statements are denominated in U.S. dollars, changes in currency exchange rates between the U.S. dollar and other currencies have had, and will continue to have, an impact on many aspects of our financial results. Changes in currency exchange rates for any country in which we operate may require us to raise the prices of our products in that country or allow our competitors to sell their products at lower prices in that country. Unrealized exchange gains and losses arising from the translation of the financial statements of our non-U.S. functional currency operations are accumulated in the cumulative translation adjustments account in accumulated other comprehensive income (loss).

Inflation

An increase in inflation could have a significant impact on the cost of our raw material inputs. Increased prices for raw materials or finished goods used in our products and/or interruptions in deliveries of raw materials or finished goods could adversely affect our profitability, margins and net sales, particularly if we are not able to pass these incurred costs on to our customers. In addition, interest rates normally increase during periods of rising inflation. Historically, as interest rates increase, demand for new homes and home improvement products decreases. An environment of gradual interest rate increases may, however, signify an improving economy or increasing real estate values, which in turn may stimulate increased home buying activity.

Seasonality

Our business is moderately seasonal and our net sales vary from quarter to quarter based upon the timing of the building season in our markets. Severe weather conditions in any quarter, such as unusually prolonged warm or cold conditions, rain, blizzards or hurricanes, could accelerate, delay or halt construction and renovation activity.

Acquisitions and Dispositions

We are pursuing a strategic initiative of optimizing our global business portfolio. As part of this strategy, in the last several years we have pursued strategic acquisitions targeting companies who produce components for our existing operations, manufacture niche products and provide value-added services. Additionally, we target companies with strong brands, complementary technologies, attractive geographic footprints and opportunities for cost and distribution synergies. We also continuously analyze our operations to determine which businesses, market channels and products create the most value for our customers and acceptable returns for our shareholders.

Acquisitions

• USA Wood Door: On October 1, 2015, we completed the acquisition of USA Wood Door, Inc. ("USA Wood Door"), based in Thorofare, New Jersey. We acquired 100% of the equity interests in USA Wood Door for consideration of approximately $13.7 million, net of cash acquired. USA Wood Door is a supplier of architectural and commercial wood doors in the Eastern United States providing door and hardware distributors with machined, re-sized and value-added additions to both unfinished and prefinished doors in short lead times.

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• Hickman: On August 5, 2015, we completed the acquisition of Hickman Industries Limited ("Hickman"), a leading supplier of doorkits (similar to fully finished prehung door units) and other millwork in the United Kingdom. We acquired 100% of the equity interests in Hickman for consideration of $88.0 million, net of cash acquired. Hickman is headquartered in Wolverhampton, England, and their leadership in providing doorkit solutions to the homebuilder market in the United Kingdom is a natural extension of our existing business in the United Kingdom. Hickman’s deployment of automation and product line leadership complements the strategies we are pursuing with our business.

• PDS: On July 23, 2015, we completed the acquisition of Performance Doorset Solutions ("PDS"), a leading supplier of custom doors and millwork in the United Kingdom that specializes in non-standard product specifications, manufacturing both wood and composite solutions. We acquired 100% of the equity interests in PDS for consideration of $15.7 million, net of cash acquired. PDS is based in Lancashire, United Kingdom, and is a producer of high quality niche product lines that complement our existing United Kingdom business.

Dispositions

• South Africa: On December 22, 2015, following a comprehensive assessment of Masonite (Africa) Limited ("MAL"), our South African subsidiary, the MAL Board of Directors approved a plan to enter into Business Rescue proceedings, the South African equivalent of bankruptcy proceedings in the United States, similar to a Chapter 11 reorganization. As a result of this plan, a Business Rescue Practitioner was appointed to manage the affairs of the business and we no longer maintain operational control over MAL. For this reason, we deconsolidated MAL effective December 22, 2015. During the second quarter of 2016, the Business Rescue Practitioner proposed a business rescue plan that would result in the sale of the business.On August 10, 2016, MAL announced the closing of the transaction proposed as part of the business rescue plan by the Business Rescue Practitioner. It is anticipated that the first payment of 30 Rand per share will be made to shareholders on August 29, 2016, and that a further payment will be made within 60 days thereafter. Masonite owns 5.6 million shares of MAL.

• France: On July 31, 2015, we completed the sale of all of the capital stock of Premdor, S.A.S. Masonite’s door business in France, to an investment fund managed by Perceva S.A.S., a Paris-based independent investment firm (the "Buyer"). Pursuant to a stock purchase agreement dated July 16, 2015, the Buyer acquired all of Masonite's door manufacturing and distribution business in France for nominal consideration.

Components of Results of Operations

There have been no material changes to the information provided in the section entitled "Components of Results of Operations" in our Annual Report on Form 10-K for the year ended January 3, 2016, other than as described below.

Segment Information

During the first quarter of 2016, we changed our reportable segments to align with changes in how we manage our business, review operating performance and allocate resources as a result of the deconsolidation of Africa and other internal reporting changes. All prior period information was recast to reflect this change. Our reportable segments are organized and managed principally by end market: North American Residential, Europe and Architectural. The North American Residential reportable segment is the aggregation of the Wholesale and Retail operating segments. The Europe reportable segment is the aggregation of the United Kingdom, Central Eastern Europe and France (prior to disposal) operating segments. The Architectural reportable segment consists solely of the Architectural operating segment. The Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments which were not aggregated into any reportable segment, including the historical results of our Africa operating segment. Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors. The discussion of segment results herein is based on the new reportable segments.

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Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Beginning with the third quarter of 2015, we revised our calculation of Adjusted EBITDA to separately exclude loss (gain) on disposal of subsidiaries. The revision to this definition had no impact on our reported Adjusted EBITDA for the three or six months ended June 28, 2015. Adjusted EBITDA (as revised) is defined as net income (loss) attributable to Masonite adjusted to exclude the following items:

• depreciation;

• amortization;

• share based compensation expense;

• loss (gain) on disposal of property, plant and equipment;

• registration and listing fees;

• restructuring costs;

• asset impairment;

• loss (gain) on disposal of subsidiaries;

• interest expense (income), net;

• loss on extinguishment of debt;

• other expense (income), net;

• income tax expense (benefit);

• loss (income) from discontinued operations, net of tax; and

• net income (loss) attributable to non-controlling interest.

This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indenture governing the 2023 Notes and the credit agreement governing the ABL Facility. Adjusted EBITDA is used to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation. Intersegment transfers are negotiated on an arm’s length basis, using market prices.

We believe that Adjusted EBITDA, from an operations standpoint, provides an appropriate way to measure and assess segment performance. Our management team has established the practice of reviewing the performance of each segment based on the measures of net sales and Adjusted EBITDA. We believe that Adjusted EBITDA is useful to users of the condensed consolidated financial statements because it provides the same information that we use internally to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation.

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Results of Operations

	Three Months Ended						Six Months Ended
(In thousands)	July 3, 2016			June 28, 2015			July 3, 2016			June 28, 2015
Net sales	$	513,985		$	476,428		$	1,003,290		$	910,893
Cost of goods sold	402,881			381,394			793,941			742,550
Gross profit	111,104			95,034			209,349			168,343
Gross profit as a % of net sales	21.6		%	19.9		%	20.9		%	18.5		%
Selling, general and administration expenses	68,961			58,818			133,859			116,979
Selling, general and administration expenses as a % of net sales	13.4		%	12.3		%	13.3		%	12.8		%
Restructuring costs	(103		)	988			(84		)	3,344
Loss (gain) on disposal of subsidiaries	(1,431		)	—			(1,431		)	—
Operating income (loss)	43,677			35,228			77,005			48,020
Interest expense (income), net	6,933			6,787			14,165			18,540
Loss on extinguishment of debt	—			—			—			28,046
Other expense (income), net	(801		)	(635		)	(15		)	(1,819		)
Income (loss) from continuing operations before income tax expense (benefit)	37,545			29,076			62,855			3,253
Income tax expense (benefit)	2,855			15,013			9,065			18,277
Income (loss) from continuing operations	34,690			14,063			53,790			(15,024		)
Income (loss) from discontinued operations, net of tax	(184		)	(240		)	(372		)	(469		)
Net income (loss)	34,506			13,823			53,418			(15,493		)
Less: net income (loss) attributable to non-controlling interest	1,151			381			2,235			2,117
Net income (loss) attributable to Masonite	$	33,355		$	13,442		$	51,183		$	(17,610	)

Three Months Ended July 3, 2016, Compared with Three Months Ended June 28, 2015

Net Sales

Net sales in the three months endedJuly 3, 2016, were $514.0 million, a increase of $37.6 million or 7.9% from $476.4 million in the three months endedJune 28, 2015. Net sales in the second quarter of 2016 were negatively impacted by $8.0 million as a result of foreign exchange rate fluctuations. Excluding this exchange rate impact, net sales would have increased by $45.6 million or 9.6% due to changes in volume, average unit price and sales of other products. Higher volume increased net sales in the second quarter of 2016 by $30.1 million or 6.3% compared to the 2015 period. Average unit price increased net sales in in the second quarter of 2016 by $14.0 million or 2.9% compared to the 2015 period. Net sales of components and other products to external customers were $1.5 million higher in the second quarter of 2016 compared to the 2015 period.

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Net Sales and Percentage of Net Sales by Principal Geographic Region

	Three Months Ended
(In thousands)	July 3, 2016			June 28, 2015
North American Residential	$	349,929		$	305,826
North American Residential intersegment	(1,756		)	(933		)
North American Residential net sales to external customers	$	348,173		$	304,893
Percentage of consolidated net sales	67.7		%	64.0		%
Europe	$	83,559		$	77,074
Europe intersegment	(1,344		)	—
Europe net sales to external customers	$	82,215		$	77,074
Percentage of consolidated net sales	16.0		%	16.2		%
Architectural	$	81,592		$	78,488
Architectural intersegment	(3,946		)	(2,477		)
Architectural net sales to external customers	$	77,646		$	76,011
Percentage of consolidated net sales	15.1		%	16.0		%
Corporate & Other net sales to external customers	$	5,951		$	18,450
Net sales to external customers	$	513,985		$	476,428

North American Residential

Net sales to external customers from facilities in the North American Residential segment in the three months endedJuly 3, 2016, were $348.2 million, an increase of $43.3 million or 14.2% from $304.9 million in the three months endedJune 28, 2015. Net sales in the second quarter of 2016 were negatively impacted by $5.1 million as a result of foreign exchange rate fluctuations. Excluding this exchange rate impact, net sales would have increased by $48.4 million or 15.9% due to changes in volume, average unit price and sales of other products. Higher volume increased net sales in the second quarter of 2016 by $42.5 million or 13.9% compared to the 2015 period. Average unit price increased net sales in the second quarter of 2016 by $6.2 million or 2.0%. Net sales of components and other products to external customers were $0.3 million lower compared to the 2015 period.

Europe

Net sales to external customers from facilities in the Europe segment in the three months endedJuly 3, 2016, were $82.2 million, an increase of $5.1 million or 6.6% from $77.1 million in the three months endedJune 28, 2015. Net sales in the second quarter of 2016 were negatively impacted by $2.4 million as a result of foreign exchange fluctuations. Excluding this exchange rate impact, net sales would have increased by $7.5 million or 9.7% due to changes in volume, average unit price and sales of other products. Average unit price increased net sales in the second quarter of 2016 by $6.1 million or 7.9% compared to the 2015 period. Higher volume increased net sales in the second quarter of 2016 by $1.1 million or 1.4% compared to the 2015 period. Net sales of components and other products to external customers were $0.3 million higher in the second quarter of 2016 compared to the 2015 period. The change in volume includes the incremental impacts of acquisitions and dispositions.

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Architectural

Net sales to external customers from facilities in the Architectural segment in the three months endedJuly 3, 2016, were $77.6 million, an increase of $1.6 million or 2.1% from $76.0 million in the three months endedJune 28, 2015. Net sales in the second quarter of 2016 were negatively impacted by $0.4 million as a result of foreign exchange fluctuations. Excluding this exchange rate impact, net sales would have increased by $2.0 million or 2.6% due to changes in volume, average unit price and sales of other products. Average unit price increased net sales in the second quarter of 2016 by $1.7 million or 2.2% compared to the 2015 period. Net sales of components and other products to external customers were $0.4 million higher in the second quarter of 2016 compared to the 2015 period. Lower volume decreased net sales in the second quarter of 2016 by $0.1 million or 0.1% compared to the 2015 period.

Cost of Goods Sold

Cost of goods sold as a percentage of net sales was 78.4% and 80.1% for the three months endedJuly 3, 2016, and June 28, 2015, respectively. The primary reasons for the decrease in cost of goods sold as a percentage of net sales were the favorable impacts of increased volume on our fixed costs and an increase in average unit price. Material cost of sales, overhead and depreciation as a percentage of net sales in the second quarter of 2016 decreased by 0.5%, 1.6%, and 0.4%, respectively, over the 2015 period. Direct labor and distribution costs as a percentage of net sales increased by 0.5% and 0.3%, respectively, over the same period.

Selling, General and Administration Expenses

In the three months endedJuly 3, 2016, selling, general and administration expenses, as a percentage of net sales, were 13.4% compared to 12.3% in the three months endedJune 28, 2015, an increase of 110 basis points.

Selling, general and administration expenses in the three months endedJuly 3, 2016, were $69.0 million, an increase of $10.2 million from $58.8 million in the three months endedJune 28, 2015. The increase was driven by a $2.2 million increase in advertising expense, a $1.9 million increase in professional fees, a $1.8 million increase in personnel costs, a $1.7 million increase in share based compensation expense, a $0.9 million increase in depreciation and amortization expense, a $0.8 million increase in travel expenses and other increases of $1.6 million. These increases were partially offset by favorable foreign exchange impacts of $0.7 million. The increased personnel costs were driven by a combination of wage inflation and investments in personnel. The increased professional fees primarily relate to investments in IT and digital initiatives.

Restructuring Costs

There were no material restructuring costs in the three months endedJuly 3, 2016, compared to $1.0 million in the three months endedJune 28, 2015. Restructuring costs in 2015 were related primarily to expenses incurred as part of the 2015 Plan.

Loss (Gain) on Disposal of Subsidiaries

Gain on disposal of subsidiaries was $1.4 million in the three months endedJuly 3, 2016. This gain arose as a result of the liquidation of our legal entity in Romania. The gain is comprised of the recognition of the cumulative translation adjustment out of accumulated other comprehensive income (loss).

Interest Expense, Net

Interest expense, net, in the three months endedJuly 3, 2016, was $6.9 million, compared to $6.8 million in the three months endedJune 28, 2015.

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Other Expense (Income), Net

Other expense (income), net, in the three months endedJuly 3, 2016, was $(0.8) million, compared to $(0.6) million in the three months endedJune 28, 2015. The change in other expense (income), net, is primarily due to unrealized gains and losses on foreign currency remeasurements. Also contributing to the change were our portion of dividends and the net gains and losses related to our non-majority owned unconsolidated subsidiaries that are recognized under the equity method of accounting and other miscellaneous non-operating expenses.

Income Tax Expense (Benefit)

Our income tax expense in the three months endedJuly 3, 2016, decreased by $12.2 million compared to the three months endedJune 28, 2015. The change in our income tax expense (benefit) is primarily due to the mix of income or losses within the tax jurisdictions with various tax rates in which we operate, income and losses in tax jurisdictions with existing valuation allowances, income tax benefits related to tax-exempt income and a discrete income tax benefit of $6.2 million recorded in the three months ended July 3, 2016, compared to $3.2 million of discrete income tax expense recorded in the three months ended June 28, 2015. Discrete items may occur in any given year, but are not consistent from period to period. The discrete benefit for the period is attributable to $6.2 million of income tax benefit related to the adoption of ASU 2016-09 as of July 3, 2016. Our combined effective income tax rate is primarily the weighted average of federal, state and provincial rates in various countries in which we have operations, including the United States, Canada, the United Kingdom and Ireland and is affected by our ability to realize tax assets in certain jurisdictions.

Segment Information

	Three Months Ended July 3, 2016
(In thousands)	North American Residential			Europe			Architectural			Corporate & Other			Total
Adjusted EBITDA	$	55,666		$	12,839		$	7,672		$	(7,661	)	$	68,516
Adjusted EBITDA as a percentage of segment net sales	16.0		%	15.6		%	9.9		%				13.3		%

	Three Months Ended June 28, 2015
(In thousands)	North American Residential		Europe		Architectural		Corporate & Other		Total
Adjusted EBITDA	46,713		8,053		8,185		(3,894	)	59,057
Adjusted EBITDA as a percentage of segment net sales	15.3	%	10.4	%	10.8	%			12.4	%

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The following reconciles Adjusted EBITDA to net income (loss) attributable to Masonite:

	Three Months Ended July 3, 2016
(In thousands)	North American Residential		Europe			Architectural		Corporate & Other			Total
Adjusted EBITDA	$	55,666	$	12,839		$	7,672	$	(7,661	)	$	68,516
Less (plus):
Depreciation	8,126		2,480			2,076		2,131			14,813
Amortization	1,225		2,393			2,064		836			6,518
Share based compensation expense	—		—			—		4,782			4,782
Loss (gain) on disposal of property, plant and equipment	199		—			61		—			260
Restructuring costs	—		—			—		(103		)	(103		)
Loss (gain) on disposal of subsidiaries	—		(1,431		)	—		—			(1,431		)
Interest expense (income), net	—		—			—		6,933			6,933
Other expense (income), net	—		22			—		(823		)	(801		)
Income tax expense (benefit)	—		—			—		2,855			2,855
Loss (income) from discontinued operations, net of tax	—		—			—		184			184
Net income (loss) attributable to non-controlling interest	858		—			—		293			1,151
Net income (loss) attributable to Masonite	$	45,258	$	9,375		$	3,471	$	(24,749	)	$	33,355

	Three Months Ended June 28, 2015
(In thousands)	North American Residential		Europe		Architectural		Corporate & Other			Total
Adjusted EBITDA	$	46,713	$	8,053	$	8,185	$	(3,894	)	$	59,057
Less (plus):
Depreciation	7,925		1,882		2,020		2,583			14,410
Amortization	1,091		924		2,074		886			4,975
Share based compensation expense	—		—		—		3,106			3,106
Loss (gain) on disposal of property, plant and equipment	317		5		9		19			350
Restructuring costs	3		467		—		518			988
Interest expense (income), net	—		—		—		6,787			6,787
Other expense (income), net	—		45		—		(680		)	(635		)
Income tax expense (benefit)	—		—		—		15,013			15,013
Loss (income) from discontinued operations, net of tax	—		—		—		240			240
Net income (loss) attributable to non-controlling interest	823		—		—		(442		)	381
Net income (loss) attributable to Masonite	$	36,554	$	4,730	$	4,082	$	(31,924	)	$	13,442

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Adjusted EBITDA in our North American Residential segment increased $9.0 million, or 19.3%, to $55.7 million in the three months endedJuly 3, 2016, from $46.7 million in the three months endedJune 28, 2015. Adjusted EBITDA in the North American Residential segment included corporate allocations of shared costs of $12.7 million and $11.0 million in the second quarter of 2016 and 2015, respectively. The allocations generally consist of certain costs of human resources, legal, finance, information technology and research and development.

Adjusted EBITDA in our Europe segment increased $4.7 million, or 58.0%, to $12.8 million in the three months endedJuly 3, 2016, from $8.1 million in the three months endedJune 28, 2015. Adjusted EBITDA in the Europe segment included an incremental comparative decrease of $0.3 million from the disposal of France in 2015.

Adjusted EBITDA in our Architectural segment decreased $0.5 million, or 6.1%, to $7.7 million in the three months endedJuly 3, 2016, from $8.2 million in the three months endedJune 28, 2015. Adjusted EBITDA in the Architectural segment included corporate allocations of shared costs of $2.0 million and $1.6 million in the second quarter of 2016 and 2015, respectively. The allocations generally consist of certain costs of human resources, legal, finance, information technology and research and development.

Six Months Ended July 3, 2016, Compared with Six Months Ended June 28, 2015

Net Sales

Net sales in the six months endedJuly 3, 2016, were $1,003.3 million, an increase of $92.4 million or 10.1% from $910.9 million in the six months endedJune 28, 2015. Net sales in the first half of 2016 were negatively impacted by $20.9 million as a result of foreign exchange rate fluctuations. Excluding this exchange rate impact, net sales would have increased by $113.3 million or 12.4% due to changes in unit volume, average unit price and sales of other products. Higher unit volumes in the first half of 2016 increased net sales by $74.6 million or 8.2% compared to the same period in 2015. Average unit price increased net sales in the first half of 2016 by $34.2 million or 3.8% compared to the same period in 2015. Net sales of components and other products to external customers were $4.5 million higher in the first half of 2016 compared to the same period in 2015.

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Net Sales and Percentage of Net Sales by Principal Geographic Region

	Six Months Ended
(In thousands)	July 3, 2016			June 28, 2015
North American Residential	$	680,545		$	580,467
North American Residential intersegment	(3,643		)	(2,306		)
North American Residential net sales to external customers	$	676,902		$	578,161
Percentage of consolidated net sales	67.5		%	63.5		%
Europe	$	164,166		$	152,177
Europe intersegment	(1,360		)	(78		)
Europe net sales to external customers	$	162,806		$	152,099
Percentage of consolidated net sales	16.2		%	16.7		%
Architectural	$	157,901		$	147,878
Architectural intersegment	(6,743		)	(4,943		)
Architectural net sales to external customers	$	151,158		$	142,935
Percentage of consolidated net sales	15.1		%	15.7		%
Corporate & Other net sales to external customers	$	12,424		$	37,698
Net sales to external customers	$	1,003,290		$	910,893

North American Residential

Net sales to external customers from facilities in the North American Residential segment in the six months endedJuly 3, 2016, were $676.9 million, an increase of $98.7 million or 17.1% from $578.2 million in the six months endedJune 28, 2015. Net sales in the first half of 2016 were negatively impacted by $14.4 million as a result of foreign exchange rate fluctuations. Excluding this exchange rate impact, net sales would have increased by $113.1 million or 19.6% due to changes in volume, average unit price and sales of other products. Higher volume increased net sales in the first half of 2016 by $92.6 million or 16.0% compared to the same period in 2015. Average unit price increased net sales in the first half of 2016 by $20.0 million or 3.5% compared to the same period in 2015. Net sales of components and other products to external customers were $0.5 million higher in the first half of 2016 compared to the same period in 2015.

Europe

Net sales to external customers from facilities in the Europe segment in the six months endedJuly 3, 2016, were $162.8 million, an increase of $10.7 million or 7.0% from $152.1 million in the six months endedJune 28, 2015. Net sales in the first half of 2016 were negatively impacted by $5.0 million as a result of foreign exchange fluctuations. Excluding this exchange rate impact, net sales would have increased by $15.7 million or 10.3% due to changes in volume, average unit price and sales of other products. Average unit price increased net sales in the first half of 2016 by $12.9 million or 8.5% compared to the same period in 2015. Higher volume increased net sales in the first half of 2016 by $1.3 million or 0.9% compared to the same period in 2015. Net sales of components and other products to external customers were $1.5 million higher in the first half of 2016 compared to the same period in 2015. The change in volume includes the incremental impacts of acquisitions and dispositions.

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MASONITE INTERNATIONAL CORPORATION

Architectural

Net sales to external customers from facilities in the Architectural segment in the six months endedJuly 3, 2016, were $151.2 million, an increase of $8.3 million or 5.8% from $142.9 million in the six months endedJune 28, 2015. Net sales in the first half of 2016 were negatively impacted by $1.3 million as a result of foreign exchange fluctuations. Excluding this exchange rate impact, net sales would have increased by $9.6 million or 6.7% due to changes in volume, average unit price and sales of other products. Higher volume increased net sales in the first half of 2016 by $6.3 million or 4.4% compared to the same period in 2015. Average unit price increased net sales in the first half of 2016 by $1.3 million or 0.9% compared to the same period in 2015. Net sales of components and other products to external customers were $2.0 million higher in the first half of 2016 compared to the same period in 2015.

Cost of Goods Sold

Cost of goods sold as a percentage of net sales was 79.1% and 81.5% for the six months endedJuly 3, 2016, and June 28, 2015, respectively. The primary reasons for the decrease in cost of goods sold as a percentage of net sales were the favorable impacts of increased volume on our fixed costs and an increase in average unit price. Material cost of sales, overhead, depreciation and distribution costs as a percentage of net sales in 2016 decreased 0.2%, 1.9%, 0.3% and 0.1%, respectively, over the 2015 period. Direct labor as a percentage of net sales increased by 0.1%.

Selling, General and Administration Expenses

In the six months endedJuly 3, 2016, selling, general and administration expenses, as a percentage of net sales, were 13.3% compared to 12.8% in the six months endedJune 28, 2015, an increase of 50 basis points.

Selling, general and administration expenses in the six months endedJuly 3, 2016, were $133.9 million, an increase of $16.9 million from $117.0 million in the six months endedJune 28, 2015. The increase was driven by a $6.4 million increase in personnel costs, a $3.9 million increase in professional fees, a $3.0 million increase in share based compensation expense, a $2.5 million increase in advertising costs, a $2.0 million increase in travel expenses and other increases of $0.7 million. These increases were partially offset by favorable foreign exchange impacts of $1.6 million. The increased personnel costs were driven by a combination of wage inflation and investments in personnel. The increased professional fees primarily relate to investments in IT and digital initiatives.

Restructuring Costs

There were no material restructuring costs in the six months endedJuly 3, 2016, compared to $3.3 million in the six months endedJune 28, 2015. Costs incurred in 2015 were related primarily to the 2015 Plan.

Loss (Gain) on Disposal of Subsidiaries

Gain on disposal of subsidiaries was $1.4 million in the six months endedJuly 3, 2016. This gain arose as a result of the liquidation of our legal entity in Romania. The gain is comprised of the recognition of the cumulative translation adjustment out of accumulated other comprehensive income (loss).

Interest Expense, Net

Interest expense, net, in the six months endedJuly 3, 2016, was $14.2 million, compared to $18.5 million in the six months endedJune 28, 2015. This decrease primarily relates to the refinancing of $500.0 million of 8.25% senior unsecured notes for $475.0 million of 5.625% senior unsecured notes issued on March 23, 2015.

Loss on Extinguishment of Debt

Loss on extinguishment of debt was $28.0 million in the six months endedJune 28, 2015. This charge represents the difference between the redemption price of our senior unsecured notes due 2021 of $531.7 million and the net carrying amount of such notes of $503.7 million. In addition to the $500.0 million of principal, the redemption price included a make-whole premium of $31.7 million and the net carrying amount included unamortized premiums of $11.5 million, partially offset by unamortized debt issuance costs of $7.8 million.

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Other Expense (Income), Net

There was no material amount of other expense (income), net, in the six months endedJuly 3, 2016, compared to $(1.8) million in the six months endedJune 28, 2015. The change in other expense (income), net, is primarily due to unrealized gains and losses on foreign currency remeasurements. Also contributing to the change were our portion of dividends and the net gains and losses related to our non-majority owned unconsolidated subsidiaries that are recognized under the equity method of accounting and other miscellaneous non-operating expenses.

Income Tax Expense (Benefit)

Our income tax expense in the six months endedJuly 3, 2016, decreased by $9.2 million compared to the six months endedJune 28, 2015. The change in our income tax expense (benefit) is primarily due to the mix of income or losses within the tax jurisdictions with various tax rates in which we operate, income and losses in tax jurisdictions with existing valuation allowances, income tax benefits related to tax-exempt income and discrete income tax benefits of $7.3 million in the six months endedJuly 3, 2016, compared to $3.2 million of income tax benefits recorded in the six months endedJune 28, 2015. The discrete income tax benefits of $7.3 million are primarily attributable to $6.2 million of discrete income tax benefits related to adoption of ASU 2016-09 and $1.1 million of discrete income tax benefits related to a change in tax rate. Discrete items may occur in any given year, but are not consistent from period to period. Our combined effective income tax rate is primarily the weighted average of federal, state and provincial rates in various countries in which we have operations, including the United States, Canada, the United Kingdom and Ireland and is affected by our ability to realize tax assets in certain jurisdictions.

Segment Information

	Six Months Ended July 3, 2016
(In thousands)	North American Residential			Europe			Architectural			Corporate & Other			Total
Adjusted EBITDA	$	107,041		$	22,957		$	12,103		$	(15,344	)	$	126,757
Adjusted EBITDA as a percentage of segment net sales	15.8		%	14.1		%	8.0		%				12.6		%

	Six Months Ended June 28, 2015
(In thousands)	North American Residential		Europe		Architectural		Corporate & Other		Total
Adjusted EBITDA	76,060		14,622		12,215		(6,052	)	96,845
Adjusted EBITDA as a percentage of segment net sales	13.2	%	9.6	%	8.5	%			10.6	%

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The following reconciles Adjusted EBITDA to net income (loss) attributable to Masonite:  

	Six Months Ended July 3, 2016
(In thousands)	North American Residential		Europe			Architectural		Corporate & Other			Total
Adjusted EBITDA	$	107,041	$	22,957		$	12,103	$	(15,344	)	$	126,757
Less (plus):
Depreciation	16,046		4,556			4,583		4,198			29,383
Amortization	2,383		4,789			4,211		1,599			12,982
Share based compensation expense	—		—			—		8,510			8,510
Loss (gain) on disposal of property, plant and equipment	290		31			102		(31		)	392
Restructuring costs	—		21			—		(105		)	(84		)
Loss (gain) on disposal of subsidiaries	—		(1,431		)	—		—			(1,431		)
Interest expense (income), net	—		—			—		14,165			14,165
Other expense (income), net	—		93			—		(108		)	(15		)
Income tax expense (benefit)	—		—			—		9,065			9,065
Loss (income) from discontinued operations, net of tax	—		—			—		372			372
Net income (loss) attributable to non-controlling interest	1,696		—			—		539			2,235
Net income (loss) attributable to Masonite	$	86,626	$	14,898		$	3,207	$	(53,548	)	$	51,183

	Six Months Ended June 28, 2015
(In thousands)	North American Residential		Europe		Architectural		Corporate & Other			Total
Adjusted EBITDA	$	76,060	$	14,622	$	12,215	$	(6,052	)	$	96,845
Less (plus):
Depreciation	15,877		3,841		3,997		6,001			29,716
Amortization	2,398		1,846		4,102		1,640			9,986
Share based compensation expense	—		—		—		5,485			5,485
Loss (gain) on disposal of property, plant and equipment	530		19		53		(308		)	294
Restructuring costs	6		2,195		—		1,143			3,344
Interest expense (income), net	—		—		—		18,540			18,540
Loss on extinguishment of debt	—		—		—		28,046			28,046
Other expense (income), net	—		128		—		(1,947		)	(1,819		)
Income tax expense (benefit)	—		—		—		18,277			18,277
Loss (income) from discontinued operations, net of tax	—		—		—		469			469
Net income (loss) attributable to non-controlling interest	1,761		—		—		356			2,117
Net income (loss) attributable to Masonite	$	55,488	$	6,593	$	4,063	$	(83,754	)	$	(17,610	)

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MASONITE INTERNATIONAL CORPORATION

Adjusted EBITDA in our North American Residential segment increased $30.9 million, or 40.6%, to $107.0 million in the six months endedJuly 3, 2016, from $76.1 million in the six months endedJune 28, 2015. Adjusted EBITDA in the North American Residential segment included corporate allocations of shared costs of $25.4 million and $22.1 million in the first half of 2016 and 2015, respectively. The allocations generally consist of certain costs of human resources, legal, finance, information technology and research and development.

Adjusted EBITDA in our Europe segment increased $8.4 million, or 57.5%, to $23.0 million in the six months endedJuly 3, 2016, from $14.6 million in the six months endedJune 28, 2015. Adjusted EBITDA in the Europe segment included an incremental comparative decrease of $0.1 million from the disposal of France in 2015.

Adjusted EBITDA in our Architectural segment decreased $0.1 million, or 0.8%, to $12.1 million in the six months endedJuly 3, 2016, from $12.2 million in the six months endedJune 28, 2015. Adjusted EBITDA in the Architectural segment included corporate allocations of shared costs of $3.9 million and $3.2 million in the first half of 2016 and 2015, respectively. The allocations generally consist of certain costs of human resources, legal, finance, information technology and research and development.

Liquidity and Capital Resources

Our liquidity needs for operations vary throughout the year. Our principal sources of liquidity are cash flows from operating activities, the borrowings under our ABL Facility and accounts receivable sales programs ("AR Sales Programs") and our existing cash balance.

We believe that our cash balance on hand, future cash generated from operations, the use of our AR Sales Programs, our ABL Facility, and ability to access the capital markets will provide adequate liquidity for the foreseeable future. As of July 3, 2016, we had $62.4 million of cash and cash equivalents, availability under our ABL Facility of $137.3 million and availability under our AR Sales Program of $29.1 million.

Cash Flows

            Cash provided by operating activities was $57.0 million during the six months endedJuly 3, 2016, compared to $40.2 million in the six months endedJune 28, 2015. This $16.8 million increase in cash provided by operating activities was primarily due to a $36.5 million increase in our net income (loss) attributable to Masonite, adjusted for non-cash and non-operating items, in the first six months of 2016 compared to the same period in 2015. This increase was partially offset by changes in working capital.

Cash used in investing activities was $39.3 million during the six months endedJuly 3, 2016, compared to $22.8 million in the six months endedJune 28, 2015. This $16.5 million increase in cash used in investing activities was driven by a $20.2 million increase in cash additions to property, plant and equipment, due to investments to support additional volume compared to 2015, and other increases in investing outflows of $0.6 million. Partially offsetting these increases in investing outflows was a year over year reduction in contributions to restricted cash of $4.3 million.

Cash used in financing activities was $40.5 million during the six months endedJuly 3, 2016, compared to $66.1 million used during the six months endedJune 28, 2015. This $25.6 million decrease in cash used in financing activities was driven by the receipt of $10.5 million in cash from the exercise of warrants to purchase our common shares offset by $46.6 million of cash outflow for the repurchase of shares of our common stock in the first half of 2016 and $2.2 million of other financing outflows. These current year cash outflows were offset by prior year net cash uses of $63.9 million related to the issuance of the 2023 Notes and the repurchase of the 2021 Notes (as described below).

Share Repurchases

On February 23, 2016, our Board of Directors approved a share repurchase program pursuant to which we may repurchase from time to time up to $150 million of our outstanding common shares. Any repurchases under the program will be made in the open market, in privately negotiated transactions or otherwise, subject to market conditions, applicable legal requirements and other relevant factors. The share repurchase program does not obligate us to acquire any particular amount of common stock, and it may be suspended or terminated at any time at our discretion. While the share repurchase program may take two years to complete, the timing and amount of any share repurchases will be

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determined by us based on our evaluation of market conditions and other factors. Repurchases under the share repurchase program are permitted to be made under one or more Rule 10b5-1 plans, which would permit shares to be repurchased when we might otherwise be precluded from doing so under applicable insider trading laws. During the six months endedJuly 3, 2016, we repurchased 0.7 million of our common shares in the open market at an aggregate cost of $46.6 million. Of these, we retired 0.3 million during the six months ended July 3, 2016; the remaining 0.4 million were subsequently retired on July 6, 2016. We have remaining capacity under this program of $103.4 million.

Other Liquidity Matters

Our anticipated uses of cash in the near term include working capital needs, especially in the case of a market recovery, and capital expenditures. On a continual basis, we evaluate and consider strategic acquisitions, divestitures, and joint ventures to create shareholder value and enhance financial performance.

Our cash and cash equivalents balance includes cash held in foreign countries in which we operate. Cash held outside Canada, in which we are incorporated, is free from significant restrictions that would prevent the cash from being accessed to meet our liquidity needs including, if necessary, to fund operations and service debt obligations in Canada. However, earnings from certain jurisdictions are indefinitely reinvested in those jurisdictions. Upon the repatriation of any earnings to Canada, in the form of dividends or otherwise, we may be subject to Canadian income taxes and withholding taxes payable to the various foreign countries. As of July 3, 2016, we do not believe adverse tax consequences exist that restrict our use of cash or cash equivalents in a material manner.

We also routinely monitor the changes in the financial condition of our customers and the potential impact on our results of operations. There has not been a change in the financial condition of a customer that has had a material adverse effect on our results of operations. However, if economic conditions were to deteriorate, it is possible that there could be an impact on our results of operations in a future period and this impact could be material.

Accounts Receivable Sales Programs

We maintain accounts receivable sales programs with third parties (the "AR Sales Programs"). Under the AR Sales Programs, we can transfer ownership of eligible trade accounts receivable of certain customers. Receivables are sold outright to third parties who assume the full risk of collection, without recourse to us in the event of a loss. Transfers of receivables under these programs are accounted for as sales. Proceeds from the transfers reflect the face value of the accounts receivable less a discount. Receivables sold under the AR Sales Programs are excluded from trade accounts receivable in the condensed consolidated balance sheets and are included in cash flows from operating activities in the condensed consolidated statements of cash flows. The discounts on the sales of trade accounts receivable sold under the AR Sales Programs were not material for any of the periods presented and were recorded in selling, general and administration expense within the condensed consolidated statements of comprehensive income (loss).

Senior Notes

On March 23, 2015, we issued $475.0 million aggregate principal senior unsecured notes (the "2023 Notes"). The 2023 Notes were issued in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to buyers outside the United States pursuant to Regulation S under the Securities Act. The 2023 Notes were issued without registration rights and are not listed on any securities exchange. The 2023 Notes were issued at par and bear interest at 5.625% per annum, payable in cash semiannually in arrears on March 15 and September 15 of each year and are due March 15, 2023. We received net proceeds of $467.9 million after deducting $7.1 million of debt issuance costs. The debt issuance costs were capitalized as deferred financing costs and are being accreted to interest expense over the term of the 2023 Notes using the effective interest method. The net proceeds from the 2023 Notes, together with existing cash balances, were used to redeem the $500.0 million aggregate principal of 2021 Notes (as described in the footnotes to the condensed consolidated financial statements) and to pay related premiums, fees and expenses.

Obligations under the 2023 Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries. We may redeem the 2023 Notes under certain circumstances specified therein. The indenture governing the 2023 Notes contains restrictive covenants that, among other things, limit our ability and our subsidiaries’ ability to: (i) incur additional debt and issue disqualified

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or preferred stock, (ii) make restricted payments, (iii) sell assets, (iv) create or permit restrictions on the ability of our restricted subsidiaries to pay dividends or make other distributions to us, (v) create or incur certain liens, (vi) enter into sale and leaseback transactions, (vii) merge or consolidate with other entities and (viii) enter into transactions with affiliates. The foregoing limitations are subject to exceptions as set forth in the indenture governing the 2023 Notes. In addition, if in the future the 2023 Notes have an investment grade rating from at least two nationally recognized statistical rating organizations, certain of these covenants will be replaced with a less restrictive covenant. The indenture governing the 2023 Notes contains customary events of default (subject in certain cases to customary grace and cure periods). As of July 3, 2016, we were in compliance with all covenants under the indenture governing the 2023 Notes.

ABL Facility

On April 9, 2015, we and certain of our subsidiaries amended and restated our asset-based revolving credit facility (the "ABL Facility") in order to extend the maturity date of the ABL Facility and amend certain other provisions. The amended and restated ABL Facility increased the revolving commitments to $150.0 million from $125.0 million and extended the final maturity date to April 9, 2020, from May 17, 2016. The borrowing base is calculated based on a percentage of the value of selected U.S. and Canadian accounts receivable and inventory, less certain ineligible amounts.

Obligations under the ABL Facility are secured by a first priority security interest in substantially all of the current assets of Masonite and our subsidiaries. In addition, obligations under the ABL Facility are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries.

Borrowings under the ABL Facility bear interest at a rate equal to, at our option, (i) the Base Rate, Canadian Prime Rate or Canadian Base Rate (each as defined in the Amended and Restated Credit Agreement) plus a margin ranging from 0.25%to 0.75% per annum, or (ii) the Eurodollar Base Rate or BA Rate (each as defined in the Amended and Restated Credit Agreement), plus a margin ranging from 1.25% to 1.75% per annum.

In addition to paying interest on any outstanding principal under the ABL Facility a commitment fee is payable on the undrawn portion of the ABL Facility in an amount equal to 0.25% per annum of the average daily balance of unused commitments during each calendar quarter.

The ABL Facility contains various customary representations, warranties and covenants by us that, among other things, and subject to certain exceptions, restrict Masonite's ability and the ability of our subsidiaries to: (i) pay dividends on our common shares and make other restricted payments, (ii) make investments and acquisitions, (iii) engage in transactions with our affiliates, (iv) sell assets, (v) merge and (vi) create liens.

The Amended and Restated Credit Agreement amended the ABL Facility to, among other things, (i) permit us to incur unlimited unsecured debt as long as such debt does not contain covenants or default provisions that are more restrictive than those contained in the ABL Facility, (ii) permit us to incur debt as long as the pro forma secured leverage ratio is less than 4.5 to 1.0, and (iii) add certain additional exceptions and exemptions under the restricted payment, investment and indebtedness covenants (including increasing the amount of certain debt permitted to be incurred under an existing exception). As of July 3, 2016, and January 3, 2016, we were in compliance with all covenants under the credit agreement governing the ABL Facility and there were no amounts outstanding under the ABL Facility.

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Supplemental Guarantor Financial Information

Our obligations under the 2023 Notes and the ABL Facility are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by certain of our directly or indirectly wholly-owned subsidiaries. The following unaudited supplemental financial information for our non-guarantor subsidiaries is presented:

Our non-guarantor subsidiaries generated external net sales of $426.3 million and $835.6 million for the three and six months endedJuly 3, 2016, and $388.6 million and $751.4 million for the three and six months endedJune 28, 2015, respectively. Our non-guarantor subsidiaries generated Adjusted EBITDA of $60.1 million and $110.5 million for the three and six months endedJuly 3, 2016, and $51.6 million and $81.1 million three and six months endedJune 28, 2015, respectively. Our non-guarantor subsidiaries had total assets of $1.3 billion as of both July 3, 2016, and January 3, 2016, respectively; and total liabilities of $785.6 million and $791.1 million as of July 3, 2016, and January 3, 2016, respectively.

Changes in Accounting Standards and Policies

Changes in accounting standards and policies are discussed in Note 1. Business Overview and Significant Accounting Policies in the Notes to the Condensed Consolidated Financial Statements in this Quarterly Report.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

For our disclosures about market risk, please see Part II, Item 7A., "Quantitative and Qualitative Disclosures about Market Risk," in our Annual Report on Form 10-K for the year ended January 3, 2016. We believe there have been no material changes to the information provided therein.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures as defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the SEC’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 disclosure.

Management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, the Chief Executive Officer and the Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting during the fiscal quarter covered by this Quarterly Report that have materially affected, or that are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

We are involved in various legal proceedings, claims and governmental audits in the ordinary course of business. In the opinion of management, the ultimate disposition of these proceedings, claims and audits will not have a material adverse effect on the financial position, results of our operations, or cash flows.

Item 1A. Risk Factors

You should carefully review and consider the information regarding certain factors which could materially affect our business, financial condition or future results as set forth under Item 1A "Risk Factors" in our Annual Report on Form 10-K filed for the year ended January 3, 2016. There have been no material changes from the risk factors disclosed in such Annual Report on Form 10-K, other than as noted below.

The United Kingdom referendum to exit the European Union could adversely affect our business.

In June 2016, voters in the United Kingdom voted for a non-binding referendum in favor of the United Kingdom exiting the European Union, which, if passed into law, could adversely affect European and worldwide economic and market conditions. As a result of the referendum, there has been, and may continue to be, instability in global financial and foreign exchange markets, including volatility in the value of the Pound Sterling and the Euro. Uncertainty about global or regional economic conditions poses a risk as consumers and businesses may postpone spending in response to tighter credit, negative financial news and declines in income or asset values, which could have a material negative effect on the European housing market, particularly in the United Kingdom, and demand for our products in the foreseeable future.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Unregistered Sale of Equity Securities.

None.

(b) Use of Proceeds.

Not applicable.

49

(c) Repurchases of Our Equity Securities.

During the three months ended July 3, 2016, we repurchased 455,358 of our common shares in the open market.

	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs
April 4, 2016, through May 1, 2016	32,381	64.38		32,381	131,888,695
May 2, 2016, through May 29, 2016	216,094	68.86		216,094	117,008,689
May 30, 2016, through July 3, 2016	206,883	65.78		206,883	103,399,853
Total	455,358	$	67.14	455,358

On February 23, 2016, our Board of Directors authorized a share repurchase plan with no specified expiration date whereby we may repurchase up to $150 million worth of of our common shares. Any repurchases under the program will be made in the open market, in privately negotiated transactions or otherwise, subject to market conditions, applicable legal requirements and other relevant factors. The share repurchase program does not obligate us to acquire any particular amount of common stock, and it may be suspended or terminated at any time at our discretion. While the share repurchase program may take two years to complete, the timing and amount of any share repurchases will be determined by us based on our evaluation of market conditions and other factors. Repurchases under the share repurchase program are permitted to be made under one or more Rule 10b5-1 plans, which would permit shares to be repurchased when we might otherwise be precluded from doing so under applicable insider trading laws. As of July 3, 2016, $103.4 million of common stock was eligible for repurchase in accordance with the plan.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

The exhibits required by Item 601 of Regulation S-K are included with this Form 10-Q and are listed on the "Index to Exhibits" immediately following the Signatures.

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SIGNATURES

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

		MASONITE INTERNATIONAL CORPORATION
		(Registrant)
Date:	August 11, 2016	By	/s/ Russell T. Tiejema
		Russell T. Tiejema
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

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INDEX TO EXHIBITS

The following is a list of all exhibits filed or furnished as part of this report:

Exhibit No.		Description
10.3(a)* ^		Form of Restricted Stock Unit Agreement pursuant to the Masonite International Corporation 2012 Equity Incentive Plan for United States Directors.
31.1*		Certification of Periodic Report by Chief Executive Officer under Section 302 of the Sarbanes-Oxley Act of 2002
31.2*		Certification of Periodic Report by Chief Financial Officer under Section 302 of the Sarbanes-Oxley Act of 2002
32.1*		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2*		Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*		XBRL Instance Document
101.SCH*		XBRL Taxonomy Extension Schema Document
101.CAL*		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		XBRL Taxonomy Extension Label Linkbase Document
101.PRE*		XBRL Taxonomy Extension Presentation Linkbase Document
*	Filed herewith.
^	Denotes management contract or compensatory plan.

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EX-10.3(A)

RESTRICTED STOCK UNIT AGREEMENT

PURSUANT TO THE

MASONITE INTERNATIONAL CORPORATION AMENDED AND RESTATED 2012 EQUITY INCENTIVE PLAN

FOR UNITED STATES DIRECTORS

* * * * *

Participant:        

Grant Date:    

Number of Restricted Stock Units granted:

* * * * *

THIS RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”), dated as of the Grant Date specified above, is entered into by and between Masonite International Corporation, a British Columbia corporation (the “Company”), and the Participant specified above, pursuant to the Masonite International Corporation Amended and Restated 2012 Equity Incentive Plan, as may be amended from time to time (the “Plan”), which is administered by the Committee; and

WHEREAS, it has been determined under the Plan that the Company will grant the Restricted Stock Units (“RSUs”) provided herein to the Participant.

NOW, THEREFORE, in consideration of the mutual covenants and promises hereinafter set forth and for other good and valuable consideration, the parties hereto hereby mutually covenant and agree as follows:

1.Incorporation By Reference; Plan Document Receipt. This Agreement is subject in all respects to the terms and provisions of the Plan (including, without limitation, any amendments thereto adopted at any time and from time to time unless such amendments are expressly intended not to apply to the grant of the RSUs hereunder), all of which terms and provisions are made a part of and incorporated in this Agreement as if they were each expressly set forth herein. Any capitalized term not defined in this Agreement shall have the same meaning as is ascribed thereto in the Plan. The Participant hereby acknowledges receipt of a true copy of the Plan and that the Participant has read the Plan carefully and fully understands its content. In the event of any conflict between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall control.

2.    Grant of Restricted Stock Unit Award. The Company hereby grants to the Participant, as of the Grant Date specified above, the number of RSUs specified above. Except as otherwise provided by the Plan, the Participant agrees and understands that nothing contained in this Agreement provides, or is intended to provide, the Participant with any protection against potential future dilution of the Participant’s interest in the Company for any reason. The Participant shall not have the rights of a stockholder in respect of the Common Stock underlying this Award until such Common Stock is delivered to the Participant in accordance with Section 4.

3.    Vesting.

(a)    General. Except as otherwise provided in this Section 3, one hundred percent (100%) shall vest on ____________; provided that the Participant is a member of the Board of Directors of the Company on such vesting date.

(b)    Forfeiture. Subject to Section 3(c), all unvested RSUs shall be immediately forfeited upon the Participant’s Termination for any reason.

(c)    Certain Terminations. All unvested RSUs shall immediately become vested upon a Termination due to (i) the Participant’s death, (ii) the Participant’s Disability or (iii) an involuntary removal of the Participant from the Board prior to the end of the Participant’s term for a reason other than “Cause”.

(d)    Change in Control. All unvested RSUs shall immediately become vested upon a Change in Control; provided the Participant is serving as a member of the Board immediately prior to the consummation of the Change in Control transaction.

4.    Delivery of Common Stock.

(a)    General. Subject to Section 4(b) and 4(c) of this Agreement and Section 14.4 of the Plan, the Company shall deliver to the Participant the Common Stock underlying the vested RSUs within thirty (30) days of the vesting date; provided, however, all Common Stock underlying the vested RSUs, to the extent not previously delivered, shall be delivered to the Participant upon a Change in Control or the 30th day following a Termination. In connection with the delivery of the Common Stock pursuant to this Agreement, the Participant agrees to execute any documents reasonably requested by the Company.

(b)    Blackout Periods. If the Participant is subject to any Company “blackout” policy or other trading restriction imposed by the Company on the date such distribution would otherwise be made pursuant to Section 4(a), the Company may elect to delay such distribution until the date the Participant is not subject to any such policy or restriction or such earlier or later date as required by applicable law, consistent with Section 409A of the Code.

(c)    Deferrals. If permitted by the Company, the Participant may elect, subject to the terms and conditions of the Plan and any other applicable written plan or procedure adopted by the Company from time to time for purposes of such election, to defer the distribution of all or any portion of the shares of Common Stock that would otherwise be distributed to the Participant hereunder (the “Deferred Shares”), consistent with the requirements of Section 409A of the Code. Upon the vesting of RSUs that have been so deferred, the applicable number of Deferred Shares shall be credited to a bookkeeping account established on the Participant’s behalf (the “Account”). Subject to this Section 4 and Section 5 below, the number of shares of Common Stock equal to the number of Deferred Shares credited to the Participant’s Account shall be distributed to the Participant in accordance with the terms and conditions of the Plan and the other applicable written plans or procedures of the Company, consistent with the requirements of Section 409A of the Code.

5.    Dividends and Other Distributions. The Participant shall be entitled to receive all dividends and other distributions paid with respect to the Common Stock underlying the RSUs, provided that any such dividends or other distributions will be subject to the same vesting requirements as the underlying RSUs and shall be paid at the time the Common Stock are delivered pursuant to Section 4. If any dividends or distributions are paid in Common Stock with respect to unvested Common Stock, the Common Stock shall be deposited with the Company and shall be subject to the same restrictions on transferability and forfeitability as the RSUs with respect to which they were paid.

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6.    Restrictive Covenants. As a condition to the receipt of the RSUs and/or the delivery of Common Stock hereunder, the Participant agrees as follows

(a)    Confidentiality and Non-Disclosure Agreement. The Company and the Participant acknowledge and agree that during the Participant's service with the Company, the Participant will have access to and may assist in developing Confidential Information and will occupy a position of trust and confidence with respect to the affairs and business of the Company and its Affiliates. The Participant agrees that the obligations set forth in this Section 6 are necessary to preserve the confidential and proprietary nature of Confidential Information and to protect the Company and its Affiliates against harmful solicitation of employees and customers and other actions by the Participant that would result in serious adverse consequences for the Company and its Affiliates. For purposes of this Agreement, “Confidential Information” means all non-public information concerning trade secrets, know-how, software, developments, inventions, processes, technology, designs, financial data, strategic business plans or any proprietary or confidential information, documents or materials in any form or media, including any of the foregoing relating to research, operations, finances, current and proposed products and services, vendors, customers, advertising and marketing, and other non-public, proprietary, and confidential information of the Company or its Affiliates. Notwithstanding anything to the contrary contained herein, the general skills, knowledge and experience gained during the Participant’s service with the Company, information publicly available or generally known within the industry or trade in which the Company competes and information or knowledge possessed by the Participant prior to his/her service with the Company shall not be considered Confidential Information.

(b)    Non-Disclosure. During and after the Participant's service with the Company, the Participant will not use, disclose, copy or transfer any Confidential Information other than as authorized in writing by the Company or within the scope of the Participant's duties with the Company as determined reasonably and in good faith by the Participant. Anything herein to the contrary notwithstanding, the provisions of this Section 6(b) shall not apply (i) when disclosure is required by law or by any court, arbitrator, mediator or administrative or legislative body (including any committee thereof) with actual or apparent jurisdiction to order the Participant to disclose or make accessible any information; provided that prior to any such disclosure the Participant shall provide the Company with reasonable notice of the requirements to disclose and an opportunity to object to such disclosure and the Participant shall cooperate with the Company in filing such objection; or (ii) as to information that becomes generally known to the public or within the relevant trade or industry other than due to the Participant's violation of this Section 6(b). Nothing in this Agreement shall prohibit or impede the Participant from communicating, cooperating or filing a complaint with any U.S. federal, state or local governmental or law enforcement branch, agency or entity (collectively, a “Governmental Entity”) with respect to possible violations of any U.S. federal, state or local law or regulation, or otherwise making disclosures to any Governmental Entity, in each case, that are protected under the whistleblower provisions of any such law or regulation, provided, that in each case such communications and disclosures are consistent with applicable law. The Participant does not need the prior authorization of (or to give notice to) the Company regarding any such communication or disclosure. Notwithstanding the foregoing, under no circumstance is the Participant authorized to disclose any information covered by the Company’s attorney-client privilege or attorney work product or the Company’s trade secrets without the prior written consent of the Company’s General Counsel.

(c)    Materials. The Participant will use Confidential Information only for normal and customary use in the Company's business, as determined reasonably and in good faith by the Company. The Participant will return to the Company all Confidential Information and copies thereof and all other property of the Company or any of its Affiliate at any time upon the request of the Company and in any event immediately after termination of Participant's service with the Company. The Participant agrees to

3

identify and return to the Company any copies of any Confidential Information after the Participant ceases to serve the Company. Anything to the contrary notwithstanding, nothing in this Section 6 shall prevent the Participant from retaining a home computer (provided all Confidential Information has been removed), papers and other materials of a personal nature, including diaries, calendars and Rolodexes, information relating to his/her compensation or relating to reimbursement of expenses, information that may be needed for tax purposes, and copies of plans, programs and agreements relating to his/her service with the Company.

(d)    No Solicitation or Hiring of Employees. During the period commencing on the Grant Date and ending on the first anniversary of the Participant’s Termination, the Participant shall not solicit, entice, persuade or induce any individual who is employed by the Company or its Affiliates (or who was so employed within twelve (12) months prior to the Participant's action) to terminate or refrain from continuing such employment or to become employed by or enter into contractual relations with any other individual or entity other than the Company or its Affiliates, and the Participant shall not hire, directly or indirectly, for himself or any other person, as an employee, consultant or otherwise, any such person. Anything to the contrary notwithstanding, the Company agrees that (i) the Participant's responding to an unsolicited request from any former employee of the Company for advice on employment matters; and (ii) the Participant's responding to an unsolicited request for an employment reference regarding any former employee of the Company from such former employee, or from a third party, by providing a reference setting forth his/her personal views about such former employee, shall not be deemed a violation of this Section 6(d); in each case, to the extent the Participant does not encourage the former employee to become employed by a company or business that employs the Participant or with which the Participant is otherwise associated (including, but not limited to, association as a sole proprietor, owner, employer, partner, principal, investor, joint venturer, shareholder, associate, employee, member, consultant, contractor, director or otherwise).

(e)    Conflicting Obligations and Rights. The Participant agrees to inform the Company of any apparent conflicts between the Participant's service for the Company and any obligations the Participant may have to preserve the confidentiality of another's proprietary information or related materials before using the same on the Company's behalf. The Company shall receive such disclosures in confidence and consistent with the objectives of avoiding any conflict of obligations and rights or the appearance of any conflict of interest.

(f)    Enforcement. The Participant acknowledges that in the event of any breach or threatened breach of this Section 6, the business interests of the Company and its Affiliates will be irreparably injured, the full extent of the damages to the Company and its Affiliates will be impossible to ascertain, monetary damages will not be an adequate remedy for the Company and its Affiliates, and the Company will be entitled to enforce this Agreement by a temporary, preliminary and/or permanent injunction or other equitable relief, without the necessity of posting bond or security, which the Participant expressly waives. The Participant understands that the Company may waive some of the requirements expressed in this Agreement, but that such a waiver to be effective must be made in writing and should not in any way be deemed a waiver of the Company's right to enforce any other requirements or provisions of this Agreement. The Participant agrees that each of the Participant's obligations specified in this Agreement is a separate and independent covenant and that the unenforceability of any of them shall not preclude the enforcement of any other covenants in this Agreement.

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7.    Non-transferability.

(a)    Restriction on Transfers. Except as provided in Section 7(b) below, all RSUs, and any rights or interests therein, (i) shall not be sold, exchanged, transferred, assigned or otherwise disposed of in any way at any time by the Participant (or any beneficiary(ies) of the Participant), other than by testamentary disposition by the Participant or by the laws of descent and distribution, (ii) shall not be pledged or encumbered in any way at any time by the Participant (or any beneficiary(ies) of the Participant) and (iii) shall not be subject to execution, attachment or similar legal process. Any attempt to sell, exchange, pledge, transfer, assign, encumber or otherwise dispose of this RSU, or the levy of any execution, attachment or similar legal process upon this RSU, contrary to the terms of this Agreement and/or the Plan, shall be null and void and without legal force or effect.

(b)    Permissible Transfers. During the Participant’s lifetime, the Participant may, with the consent of the Committee, transfer without consideration all or any portion of this RSU to one or more of his/her Family Members, to a trust established for the exclusive benefit of one or more of his/her Family Members, to a partnership in which all the partners are Family Members, or to a limited liability company in which all the members are members of his/her Family Members.

8.    Entire Agreement; Amendment. This Agreement, together with the Plan contains the entire agreement between the parties hereto with respect to the subject matter contained herein, and supersedes all prior agreements or prior understandings, whether written or oral, between the parties relating to such subject matter. The Committee shall have the right, in its sole discretion, to modify or amend this Agreement from time to time in accordance with and as provided in the Plan. This Agreement may also be modified or amended by a writing signed by both the Company and the Participant. The Company shall give written notice to the Participant of any such modification or amendment of this Agreement as soon as practicable after the adoption thereof.

9.    Acknowledgment of Participant. This award of RSUs does not entitle Participant to any benefit other than that granted under this Agreement. Participant understands and accepts that the benefits granted under this Agreement are entirely at the discretion of the Company and that the Company retains the right to amend or terminate this Agreement and the Plan at any time, at its sole discretion and without notice.

10.    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without reference to the principles of conflict of laws thereof.

11.    Termination. Any questions as to whether and when there has been a Termination and the cause of such Termination shall be determined in the sole discretion of the Committee. Nothing in this Agreement shall interfere with or limit in any way the right of the Company to terminate the Participant’s service at any time, for any reason and with or without cause.

12.    Notices. Any notice which may be required or permitted under this Agreement shall be in writing, and shall be delivered in person or via facsimile transmission, overnight courier service or certified mail, return receipt requested, postage prepaid, properly addressed as follows:

(a)    If such notice is to the Company, to the attention of the General Counsel of the Company or at such other address as the Company, by notice to the Participant, shall designate in writing from time to time.

5

(b)    If such notice is to the Participant, at his/her address as shown on the Company’s records, or at such other address as the Participant, by notice to the Company, shall designate in writing from time to time.

13.    Compliance with Laws. This issuance of RSUs (and the Common Stock underlying the RSUs) pursuant to this Agreement shall be subject to, and shall comply with, any applicable requirements of any foreign and U.S. federal and state securities laws, rules and regulations (including, without limitation, the provisions of the Securities Act, Exchange Act and in each case any respective rules and regulations promulgated thereunder) and any other law or regulation applicable thereto. The Company shall not be obligated to issue this RSU or any of the Common Stock pursuant to this Agreement if any such issuance would violate any such requirements.

14.    Binding Agreement; Assignment. This Agreement shall inure to the benefit of, be binding upon, and be enforceable by the Company and its successors and assigns. The Participant shall not assign (except as provided by Section 7 hereof) any part of this Agreement without the prior express written consent of the Company.

15.    Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument.

16.    Headings. The titles and headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of this Agreement.

17.    Further Assurances. Each party hereto shall do and perform (or shall cause to be done and performed) all such further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as either party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the Plan and the consummation of the transactions contemplated thereunder.

18.    Severability. The invalidity or unenforceability of any provisions of this Agreement, in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

MASONITE INTERNATIONAL CORPORATION
By:	/s/ Frederick J. Lynch
Name:	Frederick J. Lynch
Title:	President and Chief Executive Officer
PARTICIPANT
	/s/
Name:
Address:

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Frederick J. Lynch, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended July 3, 2016, of Masonite International Corporation;

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 controls over financial reporting.

Date:	August 11, 2016
/s/	Frederick J. Lynch
	Frederick J. Lynch
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Russell T. Tiejema, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended July 3, 2016, of Masonite International Corporation;

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 controls over financial reporting.

Date:	August 11, 2016
/s/	Russell T. Tiejema
	Russell T. Tiejema
	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

I, Frederick J. Lynch, President and Chief Executive Officer of Masonite International Corporation (the "Company"), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Quarterly Report on Form 10-Q of the Company for the quarter ended July 3, 2016 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

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

Date:	August 11, 2016
/s/	Frederick J. Lynch
	Frederick J. Lynch
	President and Chief Executive Officer
	(Principal Executive Officer)

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Russell T. Tiejema, Executive Vice President and Chief Financial Officer of Masonite International Corporation (the "Company"), do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1. The Quarterly Report on Form 10-Q of the Company for the quarter ended July 3, 2016 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m); and

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

Date:	August 11, 2016
/s/	Russell T. Tiejema
	Russell T. Tiejema
	Executive Vice President and Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

XML

Document - shares	6 Months Ended
	Jul. 03, 2016	Aug. 08, 2016
Entity [Abstract]
Entity Registrant Name	MASONITE INTERNATIONAL CORPORATION
Entity Central Index Key	0000893691
Current Fiscal Year End Date	--01-01
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jul. 03, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		30,581,543

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Statement of Comprehensive Income [Abstract]
Net sales	$ 513,985	$ 476,428	$ 1,003,290	$ 910,893
Cost of goods sold	402,881	381,394	793,941	742,550
Gross profit	111,104	95,034	209,349	168,343
Selling, general and administration expenses	68,961	58,818	133,859	116,979
Restructuring costs	(103)	988	(84)	3,344
Loss (gain) on disposal of subsidiaries	(1,431)	0	(1,431)	0
Operating income (loss)	43,677	35,228	77,005	48,020
Interest expense (income), net	6,933	6,787	14,165	18,540
Loss on extinguishment of debt	0	0	0	28,046
Other expense (income), net	(801)	(635)	(15)	(1,819)
Income (loss) from continuing operations before income tax expense (benefit)	37,545	29,076	62,855	3,253
Income tax expense (benefit)	2,855	15,013	9,065	18,277
Income (loss) from continuing operations	34,690	14,063	53,790	(15,024)
Income (loss) from discontinued operations, net of tax	(184)	(240)	(372)	(469)
Net income (loss)	34,506	13,823	53,418	(15,493)
Less: net income (loss) attributable to non-controlling interest	1,151	381	2,235	2,117
Net income (loss) attributable to Masonite	$ 33,355	$ 13,442	$ 51,183	$ (17,610)
Earnings (loss) per common share attributable to Masonite:
Basic earnings per common share attributable to Masonite (in dollars per share)	$ 1.09	$ 0.44	$ 1.68	$ (0.58)
Diluted earnings per common share attributable to Masonite (in dollars per share)	1.06	0.42	1.64	(0.58)
Earnings (loss) per common share from continuing operations attributable to Masonite:
Basic (in dollars per share)	1.10	0.45	1.69	(0.57)
Diluted (in dollars per share)	$ 1.07	$ 0.43	$ 1.65	$ (0.57)
Other comprehensive income (loss):
Net income (loss)	$ 34,506	$ 13,823	$ 53,418	$ (15,493)
Foreign exchange gain (loss)	(13,917)	9,204	(10,045)	(25,936)
Amortization of actuarial net losses	242	220	484	440
Income tax benefit (expense) related to other comprehensive income (loss)	(95)	(87)	(191)	(174)
Other comprehensive income (loss), net of tax	(13,770)	9,337	(9,752)	(25,670)
Comprehensive income (loss)	20,736	23,160	43,666	(41,163)
Less: comprehensive income (loss) attributable to non-controlling interest	1,394	496	2,965	1,547
Comprehensive income (loss) attributable to Masonite	$ 19,342	$ 22,664	$ 40,701	$ (42,710)

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jul. 03, 2016	Jan. 03, 2016
Current assets:
Cash and cash equivalents	$ 62,370	$ 89,187
Restricted cash	12,196	12,645
Accounts receivable, net	273,144	224,976
Inventories, net	233,937	208,393
Prepaid expenses	23,553	21,983
Income taxes receivable	2,797	1,762
Total current assets	607,997	558,946
Property, plant and equipment, net	534,436	534,234
Investment in equity investees	19,663	18,811
Goodwill	124,596	128,170
Intangible assets, net	207,260	225,932
Long-term deferred income taxes	11,047	16,899
Other assets, net	17,522	16,157
Total assets	1,522,521	1,499,149
Current liabilities:
Accounts payable	113,581	96,480
Accrued expenses	130,973	136,029
Income taxes payable	1,460	9
Total current liabilities	246,014	232,518
Long-term debt	470,984	468,856
Long-term deferred income taxes	62,018	98,682
Other liabilities	41,521	43,527
Total liabilities	820,537	843,583
Commitments and Contingencies (Note 9)
Equity:
Share capital: unlimited shares authorized, no par value, 31,110,327 and 30,427,865 shares issued and 30,687,350 and 30,427,865 outstanding as of July 3, 2016, and January 3, 2016, respectively	678,411	663,600
Additional paid-in capital	225,544	231,363
Accumulated deficit	(70,816)	(144,628)
Accumulated other comprehensive income (loss)	(118,430)	(107,948)
Common shares held in treasury	(28,489)	0
Total equity attributable to Masonite	686,220	642,387
Equity attributable to non-controlling interests	15,764	13,179
Total equity	701,984	655,566
Total liabilities and equity	$ 1,522,521	$ 1,499,149

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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - shares	Jul. 03, 2016	Jan. 03, 2016
Statement of Financial Position [Abstract]
Shares issued	31,110,327	30,427,865
Shares outstanding	30,687,350	30,427,865
Treasury shares held	422,977	0

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Condensed Consolidated Statements of Changes in Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Common Shares Held in Treasury	Total Equity Attributable to Masonite	Equity Attributable to Noncontrolling Interests	New Accounting Pronouncement, Early Adoption, Effect [Member]	New Accounting Pronouncement, Early Adoption, Effect [Member] Accumulated Deficit	New Accounting Pronouncement, Early Adoption, Effect [Member] Total Equity Attributable to Masonite
Opening Balance, Shares at Dec. 28, 2014		30,015,321
Opening Balance, Value at Dec. 28, 2014	$ 735,499	$ 657,292	$ 225,918	$ (97,517)	$ (76,259)	$ 0	$ 709,434	$ 26,065
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	(42,649)			(47,111)			(47,111)	4,462
Other comprehensive income (loss), net of tax	(32,789)				(31,689)		(31,689)	(1,100)
Dividends to non-controlling interests	(5,797)						0	(5,797)
Deconsolidation of non-controlling interest	(10,451)							(10,451)
Share based compensation expense	13,236		13,236				13,236
Common shares issued for delivery of share based awards, Shares		399,198
Common shares issued for delivery of share based awards, Value	0	$ 5,460	(5,460)				0
Common shares withheld to cover income taxes payable due to delivery of share based awards	(2,114)		(2,114)				(2,114)
Common shares issued under employee stock purchase plan		12,913
Common shares issued under employee stock purchase plan, value	631	$ 846	(215)				631
Common shares issued for exercise of warrants, Shares		433
Common shares issued for exercise of warrants, Value	$ 0	$ 2	(2)				0
Ending Balance, Shares at Jan. 03, 2016	30,427,865	30,427,865
Ending Balance, Value at Jan. 03, 2016	$ 655,566	$ 663,600	231,363	(144,628)	(107,948)	0	642,387	13,179	$ 689,942	$ (110,252)	$ 676,763
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative effect of new accounting principle	34,376								$ 34,376
Net income (loss)	53,418			51,183			51,183	2,235
Other comprehensive income (loss), net of tax	(9,752)				(10,482)		(10,482)	730
Dividends to non-controlling interests	(380)						0	(380)
Share based compensation expense	8,510		8,510				8,510
Common shares issued for delivery of share based awards, Shares		334,353
Common shares issued for delivery of share based awards, Value	0	$ 7,267	(7,267)				0
Common shares withheld to cover income taxes payable due to delivery of share based awards	(4,057)		(4,057)				(4,057)
Common shares issued under employee stock purchase plan		9,126
Common shares issued under employee stock purchase plan, value	416	$ 507	(91)				416
Common shares issued for exercise of warrants, Shares		630,904
Common shares issued for exercise of warrants, Value	10,487	$ 13,401	(2,914)				10,487
Common shares repurchased, Shares		(422,977)
Common shares repurchased, Value	(28,489)					(28,489)	(28,489)
Common shares repurchased and retired, Shares		(291,921)
Common shares repurchased and retired, Value	$ (18,111)	$ (6,364)		(11,747)			(18,111)
Ending Balance, Shares at Jul. 03, 2016	30,687,350	30,687,350.00
Ending Balance, Value at Jul. 03, 2016	$ 701,984	$ 678,411	$ 225,544	$ (70,816)	$ (118,430)	$ (28,489)	$ 686,220	$ 15,764

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015
Cash flows from operating activities:
Net income (loss)	$ 53,418	$ (15,493)
Adjustments to reconcile net income (loss) to net cash flow provided by (used in) operating activities:
Loss (income) from discontinued operations, net of tax	372	469
Loss (gain) on disposal of subsidiaries	(1,431)	0
Loss on extinguishment of debt	0	28,046
Depreciation	29,383	29,716
Amortization	12,982	9,986
Share based compensation expense	8,510	5,485
Deferred income taxes	4,173	14,540
Unrealized foreign exchange loss (gain)	1,225	(1,220)
Share of loss (income) from equity investees, net of tax	(852)	(595)
Dividend from equity investee	0	1,440
Pension and post-retirement expense (funding), net	(2,885)	(2,778)
Non-cash accruals and interest	1,725	658
Loss (gain) on sale of property, plant and equipment	392	294
Accounts receivable	(51,542)	(9,276)
Inventories	(25,215)	(25,636)
Prepaid expenses	(1,507)	(6,281)
Accounts payable and accrued expenses	28,445	13,062
Other assets and liabilities	(147)	(2,220)
Net cash flow provided by (used in) operating activities	57,046	40,197
Cash flows from investing activities:
Proceeds from sale of property, plant and equipment	163	324
Additions to property, plant and equipment	(38,077)	(17,918)
Cash used in acquisitions, net of cash acquired	(599)	0
Restricted cash	449	(3,866)
Other investing activities	(1,230)	(1,376)
Net cash flow provided by (used in) investing activities	(39,294)	(22,836)
Cash flows from financing activities:
Proceeds from issuance of long-term debt	390	475,000
Repayments of long-term debt	(374)	(500,000)
Payments of long-term debt extinguishment costs	0	(31,691)
Payment of debt issuance costs	0	(7,159)
Minimum tax withholding on share based awards	(4,057)	(609)
Distributions to non-controlling interests	(380)	(1,614)
Proceeds from exercise of common stock warrants	10,487	0
Repurchases of common stock	(46,600)	0
Net cash flow provided by (used in) financing activities	(40,534)	(66,073)
Net foreign currency translation adjustment on cash	(4,035)	(7,020)
Increase (decrease) in cash and cash equivalents	(26,817)	(55,732)
Cash and cash equivalents, beginning of period	89,187	192,037
Cash and cash equivalents, at end of period	$ 62,370	$ 136,305

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Business Overview and Significant Accounting Policies

6 Months Ended

Jul. 03, 2016

Accounting Policies [Abstract]

Business Overview and Significant Accounting Policies

Business Overview and Significant Accounting Policies

Unless we state otherwise or the context otherwise requires, references to "Masonite," "we," "our," "us" and the "Company" in these notes to the condensed consolidated financial statements refer to Masonite International Corporation and its subsidiaries.

Description of Business

Masonite International Corporation is one of the largest manufacturers of doors in the world, with significant market share in both interior and exterior door products. Masonite operates 64 manufacturing locations in 9 countries and sells doors to customers throughout the world, including the United States, Canada and the United Kingdom.

Basis of Presentation

We prepare these unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments consisting of normal and recurring entries considered necessary for a fair presentation of the results for the interim periods presented have been included. All significant intercompany balances and transactions have been eliminated. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect reported amounts in the financial statements and accompanying notes. These estimates are based on information available as of the date of the unaudited condensed consolidated financial statements; therefore, actual results could differ from those estimates. Interim results are not necessarily indicative of the results for a full year.

These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended January 3, 2016, as filed with the SEC. There have been no changes in the significant accounting policies from those that were disclosed in the fiscal year 2015 audited consolidated financial statements, other than as noted below.

Our fiscal year is the 52- or 53-week period ending on the Sunday closest to December 31. In a 52-week year, each fiscal quarter consists of 13 weeks. For ease of disclosure, the 13- and 26-week periods are referred to as three- and six-month periods, respectively.

Changes in Accounting Standards and Policies

Adoption of Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, "Improvements to Employee Share-Based Payment Accounting", which amends ASC 718 "Compensation - Stock Compensation". This ASU simplifies several aspects of the accounting for employee share-based award transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the ASU, an entity recognizes all excess tax benefits and tax deficiencies resulting from the exercise or vesting of a share-based award to an employee. It also allows an entity to elect, as an accounting policy, either to continue to estimate forfeitures of share-based awards (as was previously required) or to account for forfeitures when they occur. Additionally, the ASU modifies the current exception to liability classification of an award when an employer uses a net-settlement feature to withhold shares to meet the employer’s minimum statutory tax withholding requirement. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years; early adoption is permitted and varying types of application are required for the different aspects of the standard. We have adopted this guidance as of April 4, 2016. The aspect of the standard dealing with excess tax benefits and tax deficiencies was adopted using the modified-retrospective method, and resulted in an increase to previously-presented retained earnings of $34.4 million as of January 3, 2016. It also resulted in a $6.2 million income tax benefit recorded in the three months ended July 3, 2016; there was no impact on previously-presented income tax expense (benefit) for the three months ended April 3, 2016. As a result of the adoption of this standard, we have elected to account for forfeitures when they occur. The forfeitures aspect of the standard and the tax withholding aspect of the standard have each been adopted using a modified retrospective approach and had no impact on any previously-presented amounts. All other aspects of the standard were adopted using a retrospective approach and had no impact on any previously-presented amounts.

In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," which amends ASC 805, "Business Combinations." This ASU eliminates the requirement to retrospectively account for measurement-period adjustments and instead recognize such adjustments in the reporting period in which the adjustments are determined. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and prospective application is required. The adoption of this standard did not have a material impact on the presentation of our financial statements.

In April 2015, the FASB issued ASU 2015-04, "Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets." This ASU provides a practical expedient option to entities that have defined benefit plans and have a fiscal year end that does not coincide with a calendar month end. This ASU allows an entity to elect to measure defined benefit plan assets and obligations using the calendar month-end that is closest to its fiscal year end. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and prospective application is required. The adoption of this standard did not have a material impact on the presentation of our financial statements.

In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis," which amended ASC 810, "Consolidation." This ASU modifies the evaluation of whether limited partnerships are variable interest entities ("VIEs") and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and either full retrospective or modified retrospective application is required at the entity's option. The adoption of this standard did not have a material impact on the presentation of our financial statements.         

Other Recent Accounting Pronouncements not yet Adopted

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which will replace the existing guidance in ASC 840, "Leases." The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements.

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Acquisitions and Dispositions

6 Months Ended

Jul. 03, 2016

Business Combinations [Abstract]

Acquisitions and Dispositions

Acquisitions and Dispositions

2015 Acquisitions

On October 1, 2015, we completed the acquisition of USA Wood Door, Inc. (“USA Wood Door”), based in Thorofare, New Jersey. We acquired 100% of the equity interests in USA Wood Door for consideration of approximately $13.7 million, net of cash acquired. USA Wood Door is a supplier of architectural and commercial wood doors in the Eastern United States providing door and hardware distributors with machining, resizing and value-added additions to both unfinished and prefinished doors in short lead times. The excess purchase price over the fair value of net assets acquired of $8.9 million was allocated to goodwill and relates to the Architectural segment. The goodwill principally represents the anticipated synergies to be gained from the integration into our existing Architectural door business. Under Section 338 of the Internal Revenue Code, the acquisition was treated as if it was an asset purchase. Generally, the tax basis of the assets will equal the fair market value at the time of the acquisition and the goodwill is deductible for tax purposes. The USA Wood Door acquisition acts as an extension of our distribution network in North America.

On August 5, 2015, we completed the acquisition of Hickman Industries Limited ("Hickman"), headquartered in Wolverhampton, England, for total consideration of $88.0 million, net of cash acquired. We acquired 100% of the equity interests in Hickman through the purchase of all of the outstanding shares of common stock at the acquisition date. Hickman is a leading supplier of doorkits (similar to fully finished prehung door units) and other millwork in the United Kingdom and their business of providing doorkit solutions to the homebuilder market in the United Kingdom is a natural extension of our existing business in the United Kingdom. The excess purchase price over the fair value of net assets acquired of $18.2 million was allocated to goodwill. The goodwill principally represents anticipated synergies to be gained from the integration into our existing United Kingdom business. This goodwill is not deductible for tax purposes and relates to the Europe segment. The Hickman acquisition complements strategies we are pursuing with our existing United Kingdom business.

On July 23, 2015, we completed the acquisition of Performance Doorset Solutions Limited ("PDS"), headquartered in Lancashire, England, for total consideration of $15.7 million, net of cash acquired. We acquired 100% of the equity interests in PDS through the purchase of all of the outstanding shares of common stock at the acquisition date. PDS is a leading supplier of custom doors and millwork in the United Kingdom that specializes in non-standard product specifications, manufacturing both wood and composite solutions. The excess purchase price over the fair value of net assets acquired of $3.1 million was allocated to goodwill. The goodwill principally represents the future expected value of the operations of the business. This goodwill is not deductible for tax purposes and relates to the Europe segment. The PDS acquisition complements our existing United Kingdom business.

The aggregate consideration paid for acquisitions during 2015 was as follows:

(In thousands)	USA Wood Door			Hickman			PDS			Total 2015 Acquisitions
Accounts Receivable	$	2,235		$	20,870		$	3,000		$	26,105
Inventory	1,677			11,090			1,438			14,205
Property, plant and equipment	2,600			14,057			5,684			22,341
Goodwill	8,921			18,215			3,145			30,281
Intangible assets	—			55,634			6,437			62,071
Accounts payable and accrued expenses	(1,654		)	(23,972		)	(2,218		)	(27,844		)
Other assets and liabilities, net	(81		)	(7,918		)	(1,762		)	(9,761		)
Cash consideration, net of cash acquired	$	13,698		$	87,976		$	15,724		$	117,398

The fair values of intangible assets acquired are based on management’s estimates and assumptions including variations of the income approach, the cost approach and the market approach. Intangible assets acquired from the 2015 acquisitions consist of customer relationships and are being amortized over the weighted average amortization period of 9.6 years and 9.7 years for the Hickman and PDS acquisitions, respectively. The intangible assets are not expected to have any residual value. The gross contractual value of acquired trade receivables was $1.7 million, $21.0 million and $2.6 million for the USA Wood Door, Hickman and PDS acquisitions, respectively.

The following schedule represents the amount of net sales and net income (loss) attributable to Masonite from the 2015 acquisitions which have been included in the condensed consolidated statements of comprehensive income (loss) for the periods indicated subsequent to the acquisition date.

	Three Months Ended July 3, 2016
(In thousands)	USA Wood Door		Hickman		PDS			Total 2015 Acquisitions
Net sales	$	4,877	$	27,585	$	4,416		$	36,878
Net income (loss) attributable to Masonite	1,088		1,171		(210		)	2,049

	Six Months Ended July 3, 2016
(In thousands)	USA Wood Door		Hickman		PDS			Total 2015 Acquisitions
Net sales	$	9,372	$	53,340	$	8,967		$	71,679
Net income (loss) attributable to Masonite	1,586		3,310		(60		)	4,836

Pro Forma Information

The following unaudited pro forma financial information represents the condensed consolidated financial information as if the acquisitions had been included in our condensed consolidated results beginning on the first day of the fiscal year prior to their respective acquisition dates. The pro forma results have been calculated after adjusting the results of the acquired entities to remove intercompany transactions and transaction costs incurred and to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied on the first day of the fiscal year prior to the respective acquisitions, together with the consequential tax effects. The pro forma results do not reflect any cost savings, operating synergies or revenue enhancements that the combined company may achieve as a result of the acquisitions; the costs to combine the companies' operations; or the costs necessary to achieve these costs savings, operating synergies and revenue enhancements. The pro forma results do not necessarily reflect the actual results of operations of the combined companies' under our ownership and operation.

	Three Months Ended June 28, 2015
(In thousands, except per share amounts)	Masonite		2015 Acquisitions		Historical Sales to 2015 Acquisitions			Pro Forma
Net sales	$	476,428	$	36,925	$	(5,139	)	$	508,214
Net income (loss) attributable to Masonite	13,442		1,719		(931		)	14,230
Basic earnings (loss) per common share	$	0.44						$	0.47
Diluted earnings (loss) per common share	$	0.42						$	0.45

	Six Months Ended June 28, 2015
(In thousands, except per share amounts)	Masonite			2015 Acquisitions		Historical Sales to 2015 Acquisitions			Pro Forma
Net sales	$	910,893		$	73,538	$	(9,377	)	$	975,054
Net income (loss) attributable to Masonite	(17,610		)	3,485		(1,623		)	(15,748		)
Basic earnings (loss) per common share	$	(0.58	)						$	(0.52	)
Diluted earnings (loss) per common share	$	(0.58	)						$	(0.52	)

Dispositions

Romania

On April 22, 2016, we completed the liquidation of our legal entity in Romania. As a result, we recognized a $1.4 million cumulative translation adjustment in loss (gain) on disposal of subsidiaries from accumulated other comprehensive income during the three months ended July 3, 2016.

Africa

On December 22, 2015, following a comprehensive assessment of Masonite (Africa) Limited (“MAL”), our South African subsidiary, the MAL Board of Directors approved a plan to enter into Business Rescue proceedings, the South African equivalent of bankruptcy proceedings in the United States, similar to a Chapter 11 reorganization. As a result of this plan, a Business Rescue Practitioner was appointed to manage the affairs of the business and we no longer maintain operational control over MAL. For this reason, we deconsolidated MAL effective December 22, 2015. During the second quarter of 2016, the Business Rescue Practitioner proposed a business rescue plan that would result in the sale of the business.

Subsequent to deconsolidation, we have used the cost method to account for our equity investment in MAL, which has been reflected as $10.0 million in our condensed consolidated balance sheets as of July 3, 2016, and January 3, 2016, based on the estimated fair value of our portion of MAL’s net assets on the date of deconsolidation. The fair value of the investment in MAL was determined using a discounted future cash flows analysis based upon management's view of the most likely outcomes of the Business Rescue proceedings. The resulting valuation is net of future disposal costs and third party fees, and is subject to the volatility of the South African Rand. This valuation was performed on a non-recurring basis and is categorized as having Level 3 valuation inputs as established by the FASB's Fair Value Framework. The Level 3 unobservable inputs include an estimate of future cash flows for the business.

France

On July 31, 2015, we completed the sale of all of the capital stock of Premdor S.A.S., Masonite’s door business in France, to an investment fund managed by Perceva S.A.S., a Paris-based independent investment firm (the "Buyer"). Pursuant to a stock purchase agreement dated July 16, 2015, the Buyer acquired all of Masonite’s door manufacturing and distribution business in France for nominal consideration. Premdor S.A.S. generated $1.1 million and $3.2 million of losses from continuing operations before income tax expense (benefit) during the three and six months endedJune 28, 2015, respectively.

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Goodwill and Intangbile Assets

6 Months Ended

Jul. 03, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Changes in the carrying amount of goodwill were as follows as of the dates indicated:

(In thousands)	North American Residential			Europe			Architectural			Total
December 28, 2014	$	2,891		$	19,008		$	77,300		$	99,199
Goodwill from 2015 acquisitions	—			21,360			8,921			30,281
Foreign exchange fluctuations	(56		)	(1,062		)	(192		)	(1,310		)
January 3, 2016	2,835			39,306			86,029			128,170
Measurement period adjustment	—			—			599			599
Foreign exchange fluctuations	24			(4,420		)	223			(4,173		)
July 3, 2016	$	2,859		$	34,886		$	86,851		$	124,596

During the three months ended July 3, 2016, we recorded a $0.6 million increase in goodwill as a measurement period adjustment relating to the USA Wood Door acquisition, due to finalization of certain income tax-related items.

The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated:

	July 3, 2016
(In thousands)	Cost		Accumulated Amortization			Translation Adjustment			Net Book Value
Definite life intangible assets:
Customer relationships	$	155,927	$	(56,780	)	$	(11,623	)	$	87,524
Patents	30,344		(18,337		)	(815		)	11,192
Software	30,359		(24,991		)	(180		)	5,188
Other	12,280		(8,609		)	(1,770		)	1,901
	228,910		(108,717		)	(14,388		)	105,805
Indefinite life intangible assets:
Trademarks and tradenames	111,538		—			(10,083		)	101,455
Total intangible assets	$	340,448	$	(108,717	)	$	(24,471	)	$	207,260

	January 3, 2016
(In thousands)	Cost		Accumulated Amortization			Translation Adjustment			Net Book Value
Definite life intangible assets:
Customer relationships	$	155,927	$	(48,025	)	$	(5,648	)	$	102,254
Patents	29,643		(17,168		)	(885		)	11,590
Software	29,830		(23,187		)	(208		)	6,435
Other	12,280		(7,853		)	(1,567		)	2,860
	227,680		(96,233		)	(8,308		)	123,139
Indefinite life intangible assets:
Trademarks and tradenames	111,538		—			(8,745		)	102,793
Total intangible assets	$	339,218	$	(96,233	)	$	(17,053	)	$	225,932

Amortization of intangible assets was $6.3 million and $12.5 million and for the three and six months endedJuly 3, 2016, respectively, and was $4.7 million and $9.4 million for the three and six months endedJune 28, 2015, respectively. Amortization expense is classified within selling, general and administration expenses in the condensed consolidated statements of comprehensive income (loss).

The estimated future amortization of intangible assets with definite lives as of July 3, 2016, is as follows:

(In thousands)
Fiscal year:
2016 (remaining six months)	$	11,188
2017	20,968
2018	15,789
2019	14,694
2020	12,333

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Accounts Receivable

6 Months Ended

Jul. 03, 2016

Receivables [Abstract]

Accounts Receivable

Accounts Receivable

Our customers consist mainly of wholesale distributors, dealers, homebuilders and retail home centers. Our ten largest customers accounted for 59.6% and 54.1% of total accounts receivable as of July 3, 2016, and January 3, 2016, respectively. Our two largest customers, The Home Depot, Inc. and Lowe's Companies, Inc., individually accounted for more than 10% of the consolidated gross accounts receivable balance as of July 3, 2016, and January 3, 2016. No other individual customers accounted for greater than 10% of consolidated gross accounts receivable balance at either July 3, 2016, or January 3, 2016. The allowance for doubtful accounts balance was $1.6 million and $3.1 million as of July 3, 2016, and January 3, 2016, respectively.

We maintain accounts receivable sales programs with third parties (the "AR Sales Programs"). Under the AR Sales Programs, we can transfer ownership of eligible trade accounts receivable of certain customers. Receivables are sold outright to third parties who assume the full risk of collection, without recourse to us in the event of a loss. Transfers of receivables under these programs are accounted for as sales. Proceeds from the transfers reflect the face value of the accounts receivable less a discount. Receivables sold under the AR Sales Programs are excluded from trade accounts receivable in the condensed consolidated balance sheets and are included in cash flows from operating activities in the condensed consolidated statements of cash flows. The discounts on the sales of trade accounts receivable sold under the AR Sales Programs were not material for any of the periods presented and were recorded in selling, general and administration expense within the condensed consolidated statements of comprehensive income (loss).

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Inventories

6 Months Ended

Jul. 03, 2016

Inventory Disclosure [Abstract]

Inventories

Inventories

The amounts of inventory on hand were as follows as of the dates indicated:

(In thousands)	July 3, 2016			January 3, 2016
Raw materials	$	167,059		$	145,856
Finished goods	72,833			69,045
Provision for obsolete or aged inventory	(5,955		)	(6,508		)
Inventories, net	$	233,937		$	208,393

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Property, Plant and Equipment

6 Months Ended

Jul. 03, 2016

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, Plant and Equipment

The carrying amounts of our property, plant and equipment and accumulated depreciation were as follows as of the dates indicated:

(In thousands)	July 3, 2016			January 3, 2016
Land	$	25,306		$	25,316
Buildings	163,161			155,709
Machinery and equipment	570,216			551,264
Property, plant and equipment, gross	758,683			732,289
Accumulated depreciation	(224,247		)	(198,055		)
Property, plant and equipment, net	$	534,436		$	534,234

Total depreciation expense was $14.8 million and $29.4 million in the three and six months endedJuly 3, 2016, respectively, and $14.4 million and $29.7 million in the three and six months endedJune 28, 2015, respectively. Depreciation expense is included primarily within cost of goods sold in the condensed consolidated statements of comprehensive income (loss).

On June 6, 2014, an explosion occurred in the power plant of our Estcourt mill in South Africa which reduced the site’s ability to generate steam and heat the kilns which, in turn, required the production lines to cease operating for several weeks. We were insured against property loss and business interruption, and we recognized partial payments of $1.2 million in business interruption insurance proceeds during the three and six months ended June 28, 2015 . These proceeds were recorded as a reduction to selling, general and administration expense in the condensed consolidated statements of comprehensive income (loss).

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Long-Term Debt

6 Months Ended

Jul. 03, 2016

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

(In thousands)	July 3, 2016			January 3, 2016
5.625% senior unsecured notes due 2023	$	475,000		$	475,000
Debt issuance costs for 2023 Notes	(5,813		)	(6,232		)
Capital lease obligations	1,407			88
Other long-term debt	390			—
Total long-term debt	$	470,984		$	468,856

Interest expense related to our consolidated indebtedness under senior unsecured notes was $6.9 million and $13.9 million for the three and six months endedJuly 3, 2016, respectively, and $6.7 million and $17.8 million for the three and six months endedJune 28, 2015, respectively.

5.625% Senior Notes due 2023

On March 23, 2015, we issued $475.0 million aggregate principal senior unsecured notes (the "2023 Notes"). The 2023 Notes were issued in a private placement for resale to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to buyers outside the United States pursuant to Regulation S under the Securities Act. The 2023 Notes were issued without registration rights and are not listed on any securities exchange. The 2023 Notes were issued at par and bear interest at 5.625% per annum, payable in cash semiannually in arrears on March 15 and September 15 of each year and are due March 15, 2023. We received net proceeds of $467.9 million after deducting $7.1 million of debt issuance costs. The debt issuance costs were capitalized as a reduction to the carrying value of debt and are being accreted to interest expense over the term of the 2023 Notes using the effective interest method. The net proceeds from the 2023 Notes, together with available cash balances, were used to redeem $500.0 million aggregate principal prior senior unsecured notes due 2021 (the "2021 Notes") and to pay related premiums, fees and expenses. Under the terms of the indenture governing the 2021 Notes, we paid the applicable premium, as described in the indenture, of $31.7 million. Additionally, the unamortized premium of $11.5 million and unamortized debt issuance costs of $7.8 million relating to the 2021 Notes were written off in conjunction with their extinguishment. The resulting loss on extinguishment of debt was $28.0 million and is recorded as part of income (loss) from continuing operations before income tax expense (benefit) in the condensed consolidated statements of comprehensive income (loss). Additionally, the cash payment of interest accrued to, but not including, the redemption date was accelerated to the redemption date.    

We may redeem the 2023 Notes, in whole or in part, at any time prior to March 15, 2018, at a price equal to 100% of the principal amount plus the applicable premium, plus accrued and unpaid interest, if any, to the date of redemption. The applicable premium means, with respect to a note at any date of redemption, the greater of (i) 1.00% of the then-outstanding principal amount of such note and (ii) the excess of (a) the present value at such date of redemption of (1) the redemption price of such note at March 15, 2018, plus (2) all remaining required interest payments due on such note through such date (excluding accrued but unpaid interest to the date of redemption), computed using a discount rate equal to the Treasury Rate, as described in the indenture, plus 50 basis points, over (b) the principal amount of such note on such redemption date. We may also redeem the 2023 Notes, in whole or in part, at any time on or after March 15, 2018, at the applicable redemption prices specified under the indenture governing the 2023 Notes, plus accrued and unpaid interest, if any, to the date of redemption. If we experience certain changes of control or consummate certain asset sales and do not reinvest the net proceeds, we must offer to repurchase all of the 2023 Notes at a purchase price of 101.00% of their principal amount, plus accrued and unpaid interest, if any, to the repurchase date.

Obligations under the 2023 Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries.

The indenture governing the 2023 Notes contains restrictive covenants that, among other things, limit our ability and the ability of our subsidiaries to: (i) incur additional debt and issue disqualified or preferred stock, (ii) make restricted payments, (iii) sell assets, (iv) create or permit restrictions on the ability of our restricted subsidiaries to pay dividends or make other distributions to the parent company, (v) create or incur certain liens, (vi) enter into sale and leaseback transactions, (vii) merge or consolidate with other entities and (viii) enter into transactions with affiliates. The foregoing limitations are subject to exceptions as set forth in the indenture governing the 2023 Notes. In addition, if in the future the 2023 Notes have an investment grade rating from at least two nationally recognized statistical rating organizations, certain of these covenants will be replaced with a less restrictive covenant.

The indenture governing the 2023 Notes contains customary events of default (subject in certain cases to customary grace and cure periods). As of July 3, 2016, and January 3, 2016, we were in compliance with all covenants under the indenture governing the 2023 Notes.

ABL Facility

On April 9, 2015, we and certain of our subsidiaries amended and restated our asset-based revolving credit facility (the "ABL Facility") in order to extend the maturity date of the ABL Facility and amend certain other provisions. The amended and restated ABL Facility increased the revolving commitments to $150.0 million from $125.0 million and extended the final maturity date to April 9, 2020, from May 17, 2016. The borrowing base is calculated based on a percentage of the value of selected U.S. and Canadian accounts receivable and inventory, less certain ineligible amounts.

Obligations under the ABL Facility are secured by a first priority security interest in substantially all of the current assets of Masonite and our subsidiaries. In addition, obligations under the ABL Facility are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by certain of our directly or indirectly wholly-owned subsidiaries.

Borrowings under the ABL Facility bear interest at a rate equal to, at our option, (i) the Base Rate, Canadian Prime Rate or Canadian Base Rate (each as defined in the Amended and Restated Credit Agreement) plus a margin ranging from 0.25%to 0.75% per annum, or (ii) the Eurodollar Base Rate or BA Rate (each as defined in the Amended and Restated Credit Agreement), plus a margin ranging from 1.25% to 1.75% per annum.

In addition to paying interest on any outstanding principal under the ABL Facility a commitment fee is payable on the undrawn portion of the ABL Facility in an amount equal to 0.25% per annum of the average daily balance of unused commitments during each calendar quarter.

The ABL Facility contains various customary representations, warranties and covenants by us that, among other things, and subject to certain exceptions, restrict Masonite's ability and the ability of our subsidiaries to: (i) pay dividends on our common shares and make other restricted payments, (ii) make investments and acquisitions, (iii) engage in transactions with our affiliates, (iv) sell assets, (v) merge and (vi) create liens.

The Amended and Restated Credit Agreement amended the ABL Facility to, among other things, (i) permit us to incur unlimited unsecured debt as long as such debt does not contain covenants or default provisions that are more restrictive than those contained in the ABL Facility, (ii) permit us to incur debt as long as the pro forma secured leverage ratio is less than 4.5 to 1.0, and (iii) add certain additional exceptions and exemptions under the restricted payment, investment and indebtedness covenants (including increasing the amount of certain debt permitted to be incurred under an existing exception). As of July 3, 2016, and January 3, 2016, we were in compliance with all covenants under the credit agreement governing the ABL Facility and there were no amounts outstanding under the ABL Facility.

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Share Based Compensation Plans

6 Months Ended

Jul. 03, 2016

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

Share Based Compensation Plans

Share Based Compensation Plans

Share based compensation expense was $4.8 million and $8.5 million for the three and six months endedJuly 3, 2016, respectively, and $3.1 million and $5.5 million for the three and six months endedJune 28, 2015, respectively. As of July 3, 2016, the total remaining unrecognized compensation expense related to share based compensation amounted to $20.2 million, which will be amortized over the weighted average remaining requisite service period of 1.9 years. Share based compensation expense is recognized using a graded-method approach, or to a lesser extent a cliff-vesting approach, depending on the terms of the individual award and is classified within selling, general and administration expenses in the condensed consolidated statements of comprehensive income (loss). All share based awards are settled through issuance of new shares of our common stock. The share based award agreements contain restrictions on sale or transfer other than in limited circumstances. All other transfers would cause the share based awards to become null and void.

Equity Incentive Plan

Prior to July 9, 2012, we had a management equity incentive plan (the "2009 Plan"). The 2009 Plan required granting by June 9, 2012, equity instruments which upon exercise would result in management (excluding directors) owning 9.55% of our common equity (3,554,811 shares) on a fully diluted basis, after giving consideration to the potential exercise of warrants and the equity instruments granted to directors. Under the 2009 Plan, we were required to issue equity instruments to directors that represented 0.90% (335,004 shares) of the common equity on a fully diluted basis. The requirement for issuance to employees was satisfied in June 2012, and the requirement for issuance to directors was satisfied in July 2009. No awards have been granted under the 2009 Plan since May 30, 2012, and no future awards will be granted under the 2009 Plan; however, all outstanding awards under the 2009 Plan will continue to be governed by their existing terms. Aside from shares issuable for outstanding awards, there are no further shares of common stock available for future issuance under the 2009 Plan.

On July 12, 2012, the Board of Directors adopted the Masonite International Corporation 2012 Equity Incentive Plan, which was amended on June 21, 2013, by our Board of Directors and further amended and restated by our Board of Directors on February 23, 2015, and approved by our shareholders on May 12, 2015 (as amended and restated, the "2012 Plan"). The 2012 Plan was adopted because the Board believes awards granted will help to attract, motivate and retain employees and non-employee directors, align employee and stockholder interests and encourage a performance-based culture built on employee stock ownership. The 2012 Plan permits us to offer eligible directors, employees and consultants cash and share-based incentives, including stock options, stock appreciation rights, restricted stock, other share-based awards (including restricted stock units) and cash-based awards. The 2012 Plan is effective for ten years from the date of its adoption. Awards granted under the 2012 Plan are at the discretion of the Human Resources and Compensation Committee of the Board of Directors. The Human Resources and Compensation Committee may grant any award under the 2012 Plan in the form of a performance award. The 2012 Plan may be amended, suspended or terminated by the Board at any time; provided, that any amendment, suspension or termination which impairs the rights of a participant is subject to such participant's consent and; provided further, that certain material amendments are subject to shareholder approval. The aggregate number of common shares that can be issued with respect to equity awards under the 2012 Plan cannot exceed 2,000,000 shares plus the number of shares subject to existing grants under the 2009 Plan that may expire or be forfeited or cancelled. As of July 3, 2016, there were 1,516,247 shares of common stock available for future issuance under the 2012 Plan.

Deferred Compensation Plan

We offer to certain of our employees and directors a Deferred Compensation Plan ("DCP"). The DCP is an unfunded non-qualified deferred compensation plan that permits those certain employees and directors to defer a portion of their compensation to a future time. Eligible employees may elect to defer a portion of their base salary, bonus and/or restricted stock units and eligible directors may defer a portion of their director fees or restricted stock units. All contributions to the DCP on behalf of the participant are fully vested (other than restricted stock unit deferrals which remain subject to the vesting terms of the applicable equity incentive plan) and placed into a grantor trust, commonly referred to as a "rabbi trust." Although we are permitted to make matching contributions under the terms of the DCP, we have not elected to do so. The DCP invests the contributions in diversified securities from a selection of investments and the participants choose their investments and may periodically reallocate the assets in their respective accounts. Participants are entitled to receive the benefits in their accounts upon separation of service or upon a specified date, with benefits payable as a single lump sum or in annual installments. All plan investments are categorized as having Level 1 valuation inputs as established by the FASB’s Fair Value Framework.

Assets of the rabbi trust, other than Company stock, are recorded at fair value and included in other assets in the condensed consolidated balance sheets. These assets in the rabbi trust are classified as trading securities and changes in their fair values are recorded in other income (loss) in the condensed consolidated statements of comprehensive income (loss). The liability relating to deferred compensation represents our obligation to distribute funds to the participants in the future and is included in other liabilities in the condensed consolidated balance sheets. As of July 3, 2016, the liability and asset relating to deferred compensation each had a fair value of $3.0 million. Any unfunded gain or loss relating to changes in the fair value of the deferred compensation liability is recognized in selling, general and administration expense in the condensed consolidated statements of comprehensive income (loss). As of July 3, 2016, participation in the deferred compensation plan is limited and no restricted stock awards have been deferred into the deferred compensation plan.

Stock Appreciation Rights

We have granted Stock Appreciation Rights ("SARs") to certain employees under both the 2009 Plan and the 2012 Plan, which entitle the recipient to the appreciation in value of a number of common shares over the exercise price over a period of time, each as specified in the applicable award agreement. The exercise price of any SAR granted may not be less than the fair market value of our common shares on the date of grant. The compensation expense for the SARs is measured based on the fair value of the SARs at the date of grant and is recognized over the requisite service period. The SARs vest over a maximum of three years, have a life of ten years and settle in common shares. We recognize forfeitures of SARs in the period in which they occur.

No SARs vested during the six months endedJuly 3, 2016. The total fair value of SARs vested was $0.4 million in the six months endedJune 28, 2015.

Six Months Ended July 3, 2016	Stock Appreciation Rights		Aggregate Intrinsic Value (in thousands)		Weighted Average Exercise Price		Average Remaining Contractual Life (Years)
Outstanding, beginning of period	891,147		$	36,681	$	20.07	4.9
Granted	121,805				58.37
Exercised	(134,910	)	7,293		14.12
Forfeited	(2,400	)			26.33
Outstanding, end of period	875,642		$	36,008	$	26.28	5.4
Exercisable, end of period	568,917		$	28,550	$	17.22	3.9

Six Months Ended June 28, 2015	Stock Appreciation Rights		Aggregate Intrinsic Value (in thousands)		Weighted Average Exercise Price		Average Remaining Contractual Life (Years)
Outstanding, beginning of period	1,231,468		$	48,516	$	19.59	5.9
Granted	—				—
Exercised	(308,770	)	15,205		16.82
Forfeited	(4,584	)			32.26
Outstanding, end of period	918,114		$	46,400	$	20.26	5.5
Exercisable, end of period	697,577		$	37,727	$	16.72	4.8

The value of SARs granted in the six months ended July 3, 2016, as determined using the Black-Scholes Merton valuation model, was $2.0 million and is expected to be recognized over the average requisite service period of 2.0 years. Expected volatility is based upon the historical volatility of our public industry peers’ common shares amongst other considerations. The expected term is calculated using the simplified method, due to insufficient exercise activity during recent years as a basis from which to estimate future exercise patterns. The weighted average grant date assumptions used for the SARs granted were as follows for the periods indicated:

	2016 Grants
SAR value (model conclusion)	$	16.78
Risk-free rate	1.6		%
Expected dividend yield	0.0		%
Expected volatility	26.2		%
Expected term (years)	6.0

Restricted Stock Units

We have granted Restricted Stock Units ("RSUs") to directors and certain employees under both the 2009 Plan and the 2012 Plan. The RSUs confer the right to receive shares of our common stock at a specified future date or when certain conditions are met. The compensation expense for the RSUs awarded is based on the fair value of the RSUs at the date of grant and is recognized over the requisite service period. The RSUs vest over a maximum of three years and call for the underlying shares to be delivered no later than 30 days following the vesting date unless the participant is subject to a blackout period. In such case, the shares are to be delivered once the blackout restriction has been lifted. We recognize forfeitures of RSUs in the period in which they occur.

	Six Months Ended
	July 3, 2016				June 28, 2015
	Total Restricted Stock Units Outstanding		Weighted Average Grant Date Fair Value		Total Restricted Stock Units Outstanding		Weighted Average Grant Date Fair Value
Outstanding, beginning of period	526,930		$	49.31	543,373		$	34.56
Granted	283,772		45.74		192,653		61.38
Delivered	(228,090	)			(70,557	)
Withheld to cover (1)	(59,374	)			(9,128	)
Forfeited	(6,659	)			(49,482	)
Outstanding, end of period	516,579		$	58.53	606,859		$	42.75

____________

(1) A portion of the vested RSUs delivered were net share settled to cover statutory requirements for income and other employment taxes, at the individual participant’s election. We remit the equivalent cash to the appropriate taxing authorities. These net share settlements had the effect of share repurchases by us as we reduced and retired the number of shares that would have otherwise been issued as a result of the vesting.

Approximately one-third of the RSUs granted during the six months endedJuly 3, 2016, vest at specified future dates with only service requirements, while the remaining portion of the RSUs vest based on both performance and service requirements. The value of RSUs granted in the six months endedJuly 3, 2016, was $13.0 million and is being recognized over the weighted average requisite service period of 2.6 years. During the six months endedJuly 3, 2016, there were 287,464 RSUs vested at a fair value of $8.4 million.

Warrants

On June 9, 2009, we issued 5,833,335 warrants, representing the right to purchase our common shares for $55.31 per share, subsequently adjusted to $50.77 per share for the $4.54 per share return of capital in 2011. Of these, 3,333,334 had an expiration date of June 9, 2014 (the "2014 Warrants"), and 2,500,001 had an expiration date of June 9, 2016 (the "2016 Warrants"). During the six months prior to their respective expiration dates, the warrants provided the holders with a cashless exercise option. We have accounted for these warrants as equity instruments.

There were no 2014 Warrants outstanding during any period presented. Activity relating to the 2016 Warrants was as follows for the periods presented:

	Six Months Ended
	July 3, 2016			June 28, 2015
Outstanding, beginning of period	2,497,971			2,500,001
Exercised	(2,496,493		)	—
Forfeited	(1,478		)	—
Outstanding, end of period	—			2,500,001
Cash received for exercise (in thousands)	$	10,487		$	—
Common shares issued	631,023			—

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Commitments and Contingencies

6 Months Ended

Jul. 03, 2016

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

For lease agreements that provide for escalating rent payments or rent-free occupancy periods, we recognize rent expense on a straight line basis over the non-cancelable lease term and any option renewal period where failure to exercise such option would result in an economic penalty in such amount that renewal appears, at the inception of the lease, to be reasonably assured. The lease term commences on the date when all conditions precedent to our obligation to pay rent are satisfied. The leases contain provisions for renewal ranging from zero to three options of generally five years each. Minimum payments, for the following future periods, under non-cancelable operating leases and service agreements with initial or remaining terms of one year or more consist of the following:

(In thousands)
Fiscal year:
2016 (remaining six months)	$	10,072
2017	19,487
2018	18,064
2019	16,587
2020	14,383
Thereafter	84,433
Total future minimum lease payments	$	163,026

Total rent expense, including non-cancelable operating leases and month-to-month leases, was $6.8 million and $13.2 million for the three and six months endedJuly 3, 2016, respectively, and $6.0 million and $11.7 million for the three and six months endedJune 28, 2015, respectively.

We have provided customary indemnifications to our landlords under certain property lease agreements for claims by third parties in connection with their use of the premises. We also have provided routine indemnifications against adverse effects related to changes in tax laws and patent infringements by third parties. The maximum amount of these indemnifications cannot be reasonably estimated due to their nature. In some cases, we have recourse against other parties to mitigate the risk of loss from these indemnifications. Historically, we have not made any significant payments relating to such indemnifications.

From time to time, we are involved in various claims and legal actions. In the opinion of management, the ultimate disposition of these matters, individually and in the aggregate, will not have a material effect on our condensed consolidated financial statements, results of operations or liquidity.

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Restructuring Costs

6 Months Ended

Jul. 03, 2016

Restructuring and Related Activities [Abstract]

Restructuring Costs

Restructuring Costs

Restructuring costs were not material in the three or six months ended July 3, 2016. The following table summarizes the restructuring charges recorded for the periods indicated:

	Three Months Ended June 28, 2015
(In thousands)	North American Residential		Europe		Corporate & Other		Total
2015 Plan	$	—	$	415	$	519	$	934
2013 Plan	2		52		—		54
Total Restructuring Costs	$	2	$	467	$	519	$	988

	Six Months Ended June 28, 2015
(In thousands)	North American Residential		Europe		Corporate & Other		Total
2015 Plan	$	—	$	2,102	$	1,143	$	3,245
2013 Plan	6		93		—		99
Total Restructuring Costs	$	6	$	2,195	$	1,143	$	3,344

	Cumulative Amount Incurred Through July 3, 2016
(In thousands)	North American Residential		Europe		Corporate & Other		Total
2015 Plan	$	—	$	2,337	$	3,063	$	5,400
2014 Plan	—		—		9,503		9,503
2013 Plan	3,025		2,733		2,157		7,915
2012 and Prior Plans	2,378		12,695		3,609		18,682
Total Restructuring Costs	$	5,403	$	17,765	$	18,332	$	41,500

During 2015, we began implementing a multi-year plan to reorganize and consolidate certain aspects of our global head office (the "2015 Plan"). The 2015 Plan includes the creation of a new shared services function and the rationalization of certain of our European facilities, including related headcount reductions. The 2015 Plan was implemented in response to the need for more effective business processes enabled by the planned implementation of our new enterprise resource planning system as well as ongoing weak market conditions in Africa and Europe outside of the United Kingdom. Costs associated with the 2015 Plan include severance and closure charges and are substantially completed. As of July 3, 2016, we do not expect to incur any material future charges relating to the 2015 Plan.

On August 20, 2014, the Board of Directors of Masonite Israel Ltd. ("Israel"), one of our wholly-owned subsidiaries, decided to voluntarily seek a Stay of Proceedings from the Israeli courts in an attempt to restructure the business (the "2014 Plan"). The court filing was made on August 21, 2014, and the court appointed a trustee to oversee the operation of the business and to attempt to restructure it. The action to seek court protection followed a comprehensive evaluation of the alternatives for the business, including an organized sale process that was ultimately unsuccessful. We determined that the subsidiary should be deconsolidated at that time, as it had become subject to the control of a court. We have had and will continue to have no continuing involvement with Israel subsequent to August 21, 2014, and Israel will not be considered a related party. As of July 3, 2016, pending the ultimate resolution of the Stay of Proceedings, we do not anticipate any material future charges related to the 2014 Plan.

During 2013, we began implementing plans to rationalize certain of our facilities, including related headcount reductions, in Canada due to synergy opportunities related to recent acquisitions in the residential interior wood door markets. We have also rationalized certain of our operations, including related headcount reductions, in Ireland, South Africa and Israel in order to respond to declines in demand in international markets. Additionally, the decision was made to discontinue sales into the Polish market subsequent to the decision to cease manufacturing operations in 2012 (collectively, the "2013 Plan"). Costs associated with the 2013 Plan include severance and closure charges, including impairment of certain property, plant and equipment, and are substantially completed. As of July 3, 2016, we do not expect to incur any material future charges for the 2013 Plan.

Prior years’ restructuring costs relate to the closure of certain of our U.S. manufacturing facilities due to the start-up of our highly automated interior door slab assembly plant in Denmark, South Carolina, synergy opportunities related to acquisitions in the architectural interior wood door market and footprint optimization efforts resulting from declines in demand in specific markets, primarily in Europe. In response to the decline in demand, we reviewed the required levels of production and reduced the workforce and plant capacity accordingly, resulting in severance and closure charges. These actions were taken in order to rationalize capacity with existing and forecasted market demand conditions. The restructuring plans initiated in 2012 and prior years (the "2012 and Prior Plans") are substantially completed, although cash payments are expected to continue through 2019, primarily related to lease payments at closed facilities. As of July 3, 2016, we do not expect to incur any future charges for the 2012 and Prior Plans.

The changes in the accrual for restructuring by activity were as follows for the periods indicated:

(In thousands)	January 3, 2016		Severance			Closure Costs		Cash Payments		July 3, 2016
2015 Plan	$	774	$	(111	)	$	27	$	449	$	241
2014 Plan	442		—			—		16		426
2013 Plan	316		—			—		316		—
2012 and Prior Plans	858		—			—		286		572
Total	$	2,390	$	(111	)	$	27	$	1,067	$	1,239

(In thousands)	December 28, 2014		Severance		Closure Costs		Cash Payments		June 28, 2015
2015 Plan	$	—	$	1,911	$	1,334	$	2,485	$	760
2014 Plan	839		—		—		319		520
2013 Plan	341		—		99		118		322
2012 and Prior Plans	1,153		—		—		326		827
Total	$	2,333	$	1,911	$	1,433	$	3,248	$	2,429

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Income Taxes

6 Months Ended

Jul. 03, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense (benefit) for income taxes consists of the following:

	Three Months Ended					Six Months Ended
(In thousands)	July 3, 2016			June 28, 2015		July 3, 2016		June 28, 2015
Current	$	3,050		$	2,238	$	4,892	$	3,737
Deferred	(195		)	12,775		4,173		14,540
Income tax expense (benefit)	$	2,855		$	15,013	$	9,065	$	18,277

The effective tax rate differs from the Canadian statutory rate of 26.6% primarily due to changes in our valuation allowances, tax exempt income, and mix of earnings in foreign jurisdictions which are subject to tax rates that differ from the Canadian statutory rate.

We currently have deferred tax assets in certain jurisdictions resulting from net operating losses and other deductible temporary differences, which will reduce taxable income in these jurisdictions in future periods. We have determined that a valuation allowance of $43.7 million and $40.9 million was required for our deferred tax assets as of July 3, 2016, and January 3, 2016, respectively. A valuation allowance has been established on deferred tax assets resulting from net operating loss carry forwards and other carry forward attributes primarily in Canada, Chile, India, Mexico and Luxembourg. We expect to maintain valuation allowances on deferred tax assets arising in these jurisdictions until a sustained level of income is reached.

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Supplemental Cash Flow Information

6 Months Ended

Jul. 03, 2016

Supplemental Cash Flow Elements [Abstract]

Supplemental Cash Flow Information

Supplemental Cash Flow Information

Certain cash and non-cash transactions were as follows for the periods indicated:

	Six Months Ended
(In thousands)	July 3, 2016		June 28, 2015
Transactions involving cash:
Interest paid	$	13,493	$	19,951
Interest received	137		340
Income taxes paid	4,918		3,538
Income tax refunds	402		9
Non-cash transactions:
Property, plant and equipment additions in accounts payable	2,848		3,864

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Segment Information

6 Months Ended

Jul. 03, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

During the first quarter of 2016, we changed our reportable segments to align with changes in how we manage our business, review operating performance and allocate resources as a result of the deconsolidation of Africa and other internal reporting changes. All prior period information was recast to reflect this change. Our reportable segments are organized and managed principally by end market: North American Residential, Europe and Architectural. The North American Residential reportable segment is the aggregation of the Wholesale and Retail operating segments. The Europe reportable segment is the aggregation of the United Kingdom, Central Eastern Europe and France (prior to disposal) operating segments. The Architectural reportable segment consists solely of the Architectural operating segment. The Corporate & Other category includes unallocated corporate costs and the results of immaterial operating segments which were not aggregated into any reportable segment, including the historical results of our Africa operating segment. Operating segments are aggregated into reportable segments only if they exhibit similar economic characteristics. In addition to similar economic characteristics we also consider the following factors in determining the reportable segments: the nature of business activities, the management structure directly accountable to our chief operating decision maker for operating and administrative activities, availability of discrete financial information and information presented to the Board of Directors and investors.

Our management reviews net sales and Adjusted EBITDA (as defined below) to evaluate segment performance and allocate resources. Net assets are not allocated to the reportable segments. Adjusted EBITDA is a non-GAAP financial measure which does not have a standardized meaning under GAAP and is unlikely to be comparable to similar measures used by other companies. Adjusted EBITDA should not be considered as an alternative to either net income or operating cash flows determined in accordance with GAAP. Beginning with the third quarter of 2015, we revised our calculation of Adjusted EBITDA to separately exclude loss (gain) on disposal of subsidiaries. The revision to this definition had no impact on our reported Adjusted EBITDA for the three or six months ended June 28, 2015. Adjusted EBITDA (as revised) is defined as net income (loss) attributable to Masonite adjusted to exclude the following items:

• depreciation;

• amortization;

• share based compensation expense;

• loss (gain) on disposal of property, plant and equipment;

• registration and listing fees;

• restructuring costs;

• asset impairment;

• loss (gain) on disposal of subsidiaries;

• interest expense (income), net;

• loss on extinguishment of debt;

• other expense (income), net;

• income tax expense (benefit);

• loss (income) from discontinued operations, net of tax; and

• net income (loss) attributable to non-controlling interest.

This definition of Adjusted EBITDA differs from the definitions of EBITDA contained in the indenture governing the 2023 Notes and the credit agreement governing the ABL Facility. Adjusted EBITDA is used to evaluate and compare the performance of the segments and it is one of the primary measures used to determine employee incentive compensation. Intersegment transfers are negotiated on an arm’s length basis, using market prices. Certain information with respect to segments is as follows for the periods indicated:

(In thousands)	Three Months Ended July 3, 2016
(In thousands)	North American Residential			Europe			Architectural			Corporate & Other			Total
Net sales	$	349,929		$	83,559		$	81,592		$	5,951		$	521,031
Intersegment sales	(1,756		)	(1,344		)	(3,946		)	—			(7,046		)
Net sales to external customers	$	348,173		$	82,215		$	77,646		$	5,951		$	513,985
Adjusted EBITDA	$	55,666		$	12,839		$	7,672		$	(7,661	)	$	68,516

(In thousands)	Three Months Ended June 28, 2015
(In thousands)	North American Residential			Europe		Architectural			Corporate & Other			Total
Net sales	$	305,826		$	77,074	$	78,488		$	18,450		$	479,838
Intersegment sales	(933		)	—		(2,477		)	—			(3,410		)
Net sales to external customers	$	304,893		$	77,074	$	76,011		$	18,450		$	476,428
Adjusted EBITDA	$	46,713		$	8,053	$	8,185		$	(3,894	)	$	59,057

(In thousands)	Six Months Ended July 3, 2016
(In thousands)	North American Residential			Europe			Architectural			Corporate & Other			Total
Net sales	$	680,545		$	164,166		$	157,901		$	12,424		$	1,015,036
Intersegment sales	(3,643		)	(1,360		)	(6,743		)	—			(11,746		)
Net sales to external customers	$	676,902		$	162,806		$	151,158		$	12,424		$	1,003,290
Adjusted EBITDA	$	107,041		$	22,957		$	12,103		$	(15,344	)	$	126,757

(In thousands)	Six Months Ended June 28, 2015
(In thousands)	North American Residential			Europe			Architectural			Corporate & Other			Total
Net sales	$	580,467		$	152,177		$	147,878		$	37,698		$	918,220
Intersegment sales	(2,306		)	(78		)	(4,943		)	—			(7,327		)
Net sales to external customers	$	578,161		$	152,099		$	142,935		$	37,698		$	910,893
Adjusted EBITDA	$	76,060		$	14,622		$	12,215		$	(6,052	)	$	96,845

A reconciliation of our consolidated Adjusted EBITDA to net income (loss) attributable to Masonite is set forth as follows for the periods indicated:

	Three Months Ended						Six Months Ended
(In thousands)	July 3, 2016			June 28, 2015			July 3, 2016			June 28, 2015
Adjusted EBITDA	$	68,516		$	59,057		$	126,757		$	96,845
Less (plus):
Depreciation	14,813			14,410			29,383			29,716
Amortization	6,518			4,975			12,982			9,986
Share based compensation expense	4,782			3,106			8,510			5,485
Loss (gain) on disposal of property, plant and equipment	260			350			392			294
Restructuring costs	(103		)	988			(84		)	3,344
Loss (gain) on disposal of subsidiaries	(1,431		)	—			(1,431		)	—
Interest expense (income), net	6,933			6,787			14,165			18,540
Loss on extinguishment of debt	—			—			—			28,046
Other expense (income), net	(801		)	(635		)	(15		)	(1,819		)
Income tax expense (benefit)	2,855			15,013			9,065			18,277
Loss (income) from discontinued operations, net of tax	184			240			372			469
Net income (loss) attributable to non-controlling interest	1,151			381			2,235			2,117
Net income (loss) attributable to Masonite	$	33,355		$	13,442		$	51,183		$	(17,610	)

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Fair Value of Financial Instruments

6 Months Ended

Jul. 03, 2016

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amounts of our cash and cash equivalents, restricted cash, accounts receivable, income taxes receivable, accounts payable, accrued expenses and income taxes payable approximate fair value because of the short-term maturity of those instruments. The estimated fair value of the 2023 Notes as of July 3, 2016, and January 3, 2016, was $489.4 million and $484.3 million, respectively, compared to a carrying value of $469.2 million and $468.8 million, respectively. This estimate is based on market quotes and calculations based on current market rates available to us and is categorized as having Level 2 valuation inputs as established by the FASB’s Fair Value Framework. Market quotes used in these calculations are based on bid prices for our debt instruments and are obtained from and corroborated with multiple independent sources. The market quotes obtained from independent sources are within the range of management’s expectations.

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Earnings Per Share

6 Months Ended

Jul. 03, 2016

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Basic earnings per share ("EPS") is calculated by dividing earnings attributable to Masonite by the weighted-average number of our common shares outstanding during the period. Diluted EPS is calculated by dividing earnings attributable to Masonite by the weighted-average number of common shares plus the incremental number of shares issuable from non-vested and vested RSUs, SARs and warrants outstanding during the period.

(In thousands, except share and per share information)	Three Months Ended						Six Months Ended
	July 3, 2016			June 28, 2015			July 3, 2016			June 28, 2015
Net income (loss) attributable to Masonite	$	33,355		$	13,442		$	51,183		$	(17,610	)
Less: income (loss) from discontinued operations, net of tax	(184		)	(240		)	(372		)	(469		)
Income (loss) from continuing operations attributable to Masonite	$	33,539		$	13,682		$	51,555		$	(17,141	)
Shares used in computing basic earnings per share	30,577,589			30,244,869			30,536,282			30,151,182
Effect of dilutive securities:
Incremental shares issuable under share compensation plans and warrants	754,075			1,448,955			737,480			—
Shares used in computing diluted earnings per share	31,331,664			31,693,824			31,273,762			30,151,182
Basic earnings (loss) per common share attributable to Masonite:
Continuing operations attributable to Masonite	$	1.10		$	0.45		$	1.69		$	(0.57	)
Discontinued operations attributable to Masonite, net of tax	(0.01		)	(0.01		)	(0.01		)	(0.01		)
Total Basic earnings per common share attributable to Masonite	$	1.09		$	0.44		$	1.68		$	(0.58	)
Diluted earnings (loss) per common share attributable to Masonite:
Continuing operations attributable to Masonite	$	1.07		$	0.43		$	1.65		$	(0.57	)
Discontinued operations attributable to Masonite, net of tax	(0.01		)	(0.01		)	(0.01		)	(0.01		)
Total Diluted earnings per common share attributable to Masonite	$	1.06		$	0.42		$	1.64		$	(0.58	)
Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share:
Warrants	—			—			—			2,500,001
Stock appreciation rights	—			—			—			420,137
Restricted stock units	—			—			—			415,113

The weighted average number of shares outstanding utilized for the diluted EPS calculation contemplates the exercise of all currently outstanding SARs and warrants and the conversion of all RSUs. The dilutive effect of such equity awards is calculated based on the weighted average share price for each fiscal period using the treasury stock method. For the six months ended June 28, 2015, no potential common shares relating to our equity awards were included in the computation of diluted loss per share, as their effect would have been anti-dilutive given our net loss position in that period.

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Other Comprehensive Income and Accumulated Other Comprehensive Income

6 Months Ended

Jul. 03, 2016

Equity [Abstract]

Other Comprehensive Income and Accumulated Other Comprehensive Income

Other Comprehensive Income and Accumulated Other Comprehensive Income

A rollforward of the components of accumulated other comprehensive income (loss) is as follows for the periods indicated:

	Three Months Ended						Six Months Ended
(In thousands)	July 3, 2016			June 28, 2015			July 3, 2016			June 28, 2015
Accumulated foreign exchange gains (losses), beginning of period	$	(86,726	)	$	(91,928	)	$	(90,111	)	$	(57,473	)
Foreign exchange gain (loss)	(12,486		)	9,204			(8,614		)	(25,936		)
Cumulative translation adjustment recognized upon deconsolidation of subsidiary	(1,431		)	—			(1,431		)	—
Less: foreign exchange gain (loss) attributable to non-controlling interest	243			115			730			(570		)
Accumulated foreign exchange gains (losses), end of period	(100,886		)	(82,839		)	(100,886		)	(82,839		)
Accumulated pension and other post-retirement adjustments, beginning of period	(17,691		)	(18,653		)	(17,837		)	(18,786		)
Amortization of actuarial net losses	242			220			484			440
Income tax benefit (expense) on amortization of actuarial net losses	(95		)	(87		)	(191		)	(174		)
Accumulated pension and other post-retirement adjustments	(17,544		)	(18,520		)	(17,544		)	(18,520		)
Accumulated other comprehensive income (loss)	$	(118,430	)	$	(101,359	)	$	(118,430	)	$	(101,359	)
Other comprehensive income (loss), net of tax	$	(13,770	)	$	9,337		$	(9,752	)	$	(25,670	)
Less: other comprehensive income (loss) attributable to non-controlling interest	243			115			730			(570		)
Other comprehensive income (loss) attributable to Masonite	$	(14,013	)	$	9,222		$	(10,482	)	$	(25,100	)

Actuarial net losses are reclassified out of accumulated other comprehensive income (loss) into cost of goods sold in the condensed consolidated statements of comprehensive income (loss).

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Variable Interest Entity

6 Months Ended

Jul. 03, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entity

Variable Interest Entity

As of July 3, 2016, and January 3, 2016, we held an interest in one variable interest entity ("VIE"), Magna Foremost Sdn Bhd, which is located in Bintulu, Malaysia. The VIE is integrated into our supply chain and manufactures door facings. We are the primary beneficiary of the VIE via the terms of the existing operating principles with the VIE. As primary beneficiary via the operating principles, we receive a disproportionate amount of earnings on sales to third parties in relation to our voting interest, and as a result, receive a majority of the VIE’s residual returns. Sales to third parties did not have a material impact on our condensed consolidated financial statements. We also have the power to direct activities of the VIE that most significantly impact the entity’s economic performance. As its primary beneficiary, we have consolidated the results of the VIE. Our net cumulative investment in the VIE was comprised of the following as of the dates indicated:

(In thousands)	July 3, 2016			January 3, 2016
Current assets	$	11,377		$	9,987
Property, plant and equipment, net	14,480			15,638
Long-term deferred income taxes	8,288			9,121
Other assets, net	1,753			2,270
Current liabilities	(2,104		)	(5,133		)
Other long-term liabilities	(3,179		)	(2,944		)
Non-controlling interest	(5,519		)	(4,981		)
Net assets of the VIE consolidated by Masonite	$	25,096		$	23,958

Current assets include $6.3 million and $2.1 million of cash and cash equivalents as of July 3, 2016, and January 3, 2016, respectively. Assets recognized as a result of consolidating this VIE do not represent additional assets that could be used to satisfy claims against our general assets. Furthermore, liabilities recognized as a result of consolidating these entities do not represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIE.

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Subsequent Event

6 Months Ended

Jul. 03, 2016

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

Africa

On August 10, 2016, MAL announced the closing of the transaction proposed as part of the business rescue plan by the Business Rescue Practitioner. It is anticipated that the first payment of 30 Rand per share will be made to shareholders on August 29, 2016, and that a further payment will be made within 60 days thereafter. Masonite owns 5.6 million shares of MAL.

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Business Overview and Significant Accounting Policies (Policies)

6 Months Ended

Jul. 03, 2016

Accounting Policies [Abstract]

Adoption of Recent Accounting Pronouncements

Adoption of Recent Accounting Pronouncements

In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, "Improvements to Employee Share-Based Payment Accounting", which amends ASC 718 "Compensation - Stock Compensation". This ASU simplifies several aspects of the accounting for employee share-based award transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. Under the ASU, an entity recognizes all excess tax benefits and tax deficiencies resulting from the exercise or vesting of a share-based award to an employee. It also allows an entity to elect, as an accounting policy, either to continue to estimate forfeitures of share-based awards (as was previously required) or to account for forfeitures when they occur. Additionally, the ASU modifies the current exception to liability classification of an award when an employer uses a net-settlement feature to withhold shares to meet the employer’s minimum statutory tax withholding requirement. This ASU is effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years; early adoption is permitted and varying types of application are required for the different aspects of the standard. We have adopted this guidance as of April 4, 2016. The aspect of the standard dealing with excess tax benefits and tax deficiencies was adopted using the modified-retrospective method, and resulted in an increase to previously-presented retained earnings of $34.4 million as of January 3, 2016. It also resulted in a $6.2 million income tax benefit recorded in the three months ended July 3, 2016; there was no impact on previously-presented income tax expense (benefit) for the three months ended April 3, 2016. As a result of the adoption of this standard, we have elected to account for forfeitures when they occur. The forfeitures aspect of the standard and the tax withholding aspect of the standard have each been adopted using a modified retrospective approach and had no impact on any previously-presented amounts. All other aspects of the standard were adopted using a retrospective approach and had no impact on any previously-presented amounts.

In September 2015, the FASB issued ASU 2015-16, "Simplifying the Accounting for Measurement-Period Adjustments," which amends ASC 805, "Business Combinations." This ASU eliminates the requirement to retrospectively account for measurement-period adjustments and instead recognize such adjustments in the reporting period in which the adjustments are determined. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and prospective application is required. The adoption of this standard did not have a material impact on the presentation of our financial statements.

In April 2015, the FASB issued ASU 2015-04, "Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets." This ASU provides a practical expedient option to entities that have defined benefit plans and have a fiscal year end that does not coincide with a calendar month end. This ASU allows an entity to elect to measure defined benefit plan assets and obligations using the calendar month-end that is closest to its fiscal year end. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and prospective application is required. The adoption of this standard did not have a material impact on the presentation of our financial statements.

In February 2015, the FASB issued ASU 2015-02, "Amendments to the Consolidation Analysis," which amended ASC 810, "Consolidation." This ASU modifies the evaluation of whether limited partnerships are variable interest entities ("VIEs") and affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships. This ASU is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years; early adoption is permitted and either full retrospective or modified retrospective application is required at the entity's option. The adoption of this standard did not have a material impact on the presentation of our financial statements.         

Other Recent Accounting Pronouncements not yet Adopted

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)", which will replace the existing guidance in ASC 840, "Leases." The updated standard aims to increase transparency and comparability among organizations by requiring lessees to recognize lease assets and lease liabilities on the balance sheet and requiring disclosure of key information about leasing arrangements. This ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods; early adoption is permitted and modified retrospective application is required. We are in the process of evaluating this guidance to determine the impact it will have on our financial statements.

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Acquisitions (Tables)

6 Months Ended

Jul. 03, 2016

Business Combinations [Abstract]

Aggregate consideration paid for acquisitions

The aggregate consideration paid for acquisitions during 2015 was as follows:

(In thousands)	USA Wood Door			Hickman			PDS			Total 2015 Acquisitions
Accounts Receivable	$	2,235		$	20,870		$	3,000		$	26,105
Inventory	1,677			11,090			1,438			14,205
Property, plant and equipment	2,600			14,057			5,684			22,341
Goodwill	8,921			18,215			3,145			30,281
Intangible assets	—			55,634			6,437			62,071
Accounts payable and accrued expenses	(1,654		)	(23,972		)	(2,218		)	(27,844		)
Other assets and liabilities, net	(81		)	(7,918		)	(1,762		)	(9,761		)
Cash consideration, net of cash acquired	$	13,698		$	87,976		$	15,724		$	117,398

Pro forma information of acquisitions

The following schedule represents the amount of net sales and net income (loss) attributable to Masonite from the 2015 acquisitions which have been included in the condensed consolidated statements of comprehensive income (loss) for the periods indicated subsequent to the acquisition date.

	Three Months Ended July 3, 2016
(In thousands)	USA Wood Door		Hickman		PDS			Total 2015 Acquisitions
Net sales	$	4,877	$	27,585	$	4,416		$	36,878
Net income (loss) attributable to Masonite	1,088		1,171		(210		)	2,049

	Six Months Ended July 3, 2016
(In thousands)	USA Wood Door		Hickman		PDS			Total 2015 Acquisitions
Net sales	$	9,372	$	53,340	$	8,967		$	71,679
Net income (loss) attributable to Masonite	1,586		3,310		(60		)	4,836

The following unaudited pro forma financial information represents the condensed consolidated financial information as if the acquisitions had been included in our condensed consolidated results beginning on the first day of the fiscal year prior to their respective acquisition dates. The pro forma results have been calculated after adjusting the results of the acquired entities to remove intercompany transactions and transaction costs incurred and to reflect the additional depreciation and amortization that would have been charged assuming the fair value adjustments to property, plant and equipment and intangible assets had been applied on the first day of the fiscal year prior to the respective acquisitions, together with the consequential tax effects. The pro forma results do not reflect any cost savings, operating synergies or revenue enhancements that the combined company may achieve as a result of the acquisitions; the costs to combine the companies' operations; or the costs necessary to achieve these costs savings, operating synergies and revenue enhancements. The pro forma results do not necessarily reflect the actual results of operations of the combined companies' under our ownership and operation.

	Three Months Ended June 28, 2015
(In thousands, except per share amounts)	Masonite		2015 Acquisitions		Historical Sales to 2015 Acquisitions			Pro Forma
Net sales	$	476,428	$	36,925	$	(5,139	)	$	508,214
Net income (loss) attributable to Masonite	13,442		1,719		(931		)	14,230
Basic earnings (loss) per common share	$	0.44						$	0.47
Diluted earnings (loss) per common share	$	0.42						$	0.45

	Six Months Ended June 28, 2015
(In thousands, except per share amounts)	Masonite			2015 Acquisitions		Historical Sales to 2015 Acquisitions			Pro Forma
Net sales	$	910,893		$	73,538	$	(9,377	)	$	975,054
Net income (loss) attributable to Masonite	(17,610		)	3,485		(1,623		)	(15,748		)
Basic earnings (loss) per common share	$	(0.58	)						$	(0.52	)
Diluted earnings (loss) per common share	$	(0.58	)						$	(0.52	)

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Goodwill and Intangible Assets (Tables)

6 Months Ended

Jul. 03, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in carrying amount of goodwill

Changes in the carrying amount of goodwill were as follows as of the dates indicated:

(In thousands)	North American Residential			Europe			Architectural			Total
December 28, 2014	$	2,891		$	19,008		$	77,300		$	99,199
Goodwill from 2015 acquisitions	—			21,360			8,921			30,281
Foreign exchange fluctuations	(56		)	(1,062		)	(192		)	(1,310		)
January 3, 2016	2,835			39,306			86,029			128,170
Measurement period adjustment	—			—			599			599
Foreign exchange fluctuations	24			(4,420		)	223			(4,173		)
July 3, 2016	$	2,859		$	34,886		$	86,851		$	124,596

Cost and accumulated amortized values of intangible assets

The cost and accumulated amortization values of our intangible assets were as follows as of the dates indicated:

	July 3, 2016
(In thousands)	Cost		Accumulated Amortization			Translation Adjustment			Net Book Value
Definite life intangible assets:
Customer relationships	$	155,927	$	(56,780	)	$	(11,623	)	$	87,524
Patents	30,344		(18,337		)	(815		)	11,192
Software	30,359		(24,991		)	(180		)	5,188
Other	12,280		(8,609		)	(1,770		)	1,901
	228,910		(108,717		)	(14,388		)	105,805
Indefinite life intangible assets:
Trademarks and tradenames	111,538		—			(10,083		)	101,455
Total intangible assets	$	340,448	$	(108,717	)	$	(24,471	)	$	207,260

	January 3, 2016
(In thousands)	Cost		Accumulated Amortization			Translation Adjustment			Net Book Value
Definite life intangible assets:
Customer relationships	$	155,927	$	(48,025	)	$	(5,648	)	$	102,254
Patents	29,643		(17,168		)	(885		)	11,590
Software	29,830		(23,187		)	(208		)	6,435
Other	12,280		(7,853		)	(1,567		)	2,860
	227,680		(96,233		)	(8,308		)	123,139
Indefinite life intangible assets:
Trademarks and tradenames	111,538		—			(8,745		)	102,793
Total intangible assets	$	339,218	$	(96,233	)	$	(17,053	)	$	225,932

Estimated future amortization of intangible assets with definite lives

The estimated future amortization of intangible assets with definite lives as of July 3, 2016, is as follows:

(In thousands)
Fiscal year:
2016 (remaining six months)	$	11,188
2017	20,968
2018	15,789
2019	14,694
2020	12,333

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Inventories (Tables)

6 Months Ended

Jul. 03, 2016

Inventory Disclosure [Abstract]

Inventories

The amounts of inventory on hand were as follows as of the dates indicated:

(In thousands)	July 3, 2016			January 3, 2016
Raw materials	$	167,059		$	145,856
Finished goods	72,833			69,045
Provision for obsolete or aged inventory	(5,955		)	(6,508		)
Inventories, net	$	233,937		$	208,393

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Property, Plant and Equipment (Tables)

6 Months Ended

Jul. 03, 2016

Property, Plant and Equipment [Abstract]

Amounts of property, plant, and equipment

The carrying amounts of our property, plant and equipment and accumulated depreciation were as follows as of the dates indicated:

(In thousands)	July 3, 2016			January 3, 2016
Land	$	25,306		$	25,316
Buildings	163,161			155,709
Machinery and equipment	570,216			551,264
Property, plant and equipment, gross	758,683			732,289
Accumulated depreciation	(224,247		)	(198,055		)
Property, plant and equipment, net	$	534,436		$	534,234

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Long-Term Debt (Tables)

6 Months Ended

Jul. 03, 2016

Debt Disclosure [Abstract]

Schedule of long-term debt

(In thousands)	July 3, 2016			January 3, 2016
5.625% senior unsecured notes due 2023	$	475,000		$	475,000
Debt issuance costs for 2023 Notes	(5,813		)	(6,232		)
Capital lease obligations	1,407			88
Other long-term debt	390			—
Total long-term debt	$	470,984		$	468,856

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Share Based Compensation Plans (Tables)

6 Months Ended

Jul. 03, 2016

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

Stock appreciation rights award activity

Six Months Ended July 3, 2016	Stock Appreciation Rights		Aggregate Intrinsic Value (in thousands)		Weighted Average Exercise Price		Average Remaining Contractual Life (Years)
Outstanding, beginning of period	891,147		$	36,681	$	20.07	4.9
Granted	121,805				58.37
Exercised	(134,910	)	7,293		14.12
Forfeited	(2,400	)			26.33
Outstanding, end of period	875,642		$	36,008	$	26.28	5.4
Exercisable, end of period	568,917		$	28,550	$	17.22	3.9

Six Months Ended June 28, 2015	Stock Appreciation Rights		Aggregate Intrinsic Value (in thousands)		Weighted Average Exercise Price		Average Remaining Contractual Life (Years)
Outstanding, beginning of period	1,231,468		$	48,516	$	19.59	5.9
Granted	—				—
Exercised	(308,770	)	15,205		16.82
Forfeited	(4,584	)			32.26
Outstanding, end of period	918,114		$	46,400	$	20.26	5.5
Exercisable, end of period	697,577		$	37,727	$	16.72	4.8

Schedule of Share-based Compensation, Stock Appreciation Rights, Valuation Assumptions

The weighted average grant date assumptions used for the SARs granted were as follows for the periods indicated:

	2016 Grants
SAR value (model conclusion)	$	16.78
Risk-free rate	1.6		%
Expected dividend yield	0.0		%
Expected volatility	26.2		%
Expected term (years)	6.0

Restricted stock units award activity

	Six Months Ended
	July 3, 2016				June 28, 2015
	Total Restricted Stock Units Outstanding		Weighted Average Grant Date Fair Value		Total Restricted Stock Units Outstanding		Weighted Average Grant Date Fair Value
Outstanding, beginning of period	526,930		$	49.31	543,373		$	34.56
Granted	283,772		45.74		192,653		61.38
Delivered	(228,090	)			(70,557	)
Withheld to cover (1)	(59,374	)			(9,128	)
Forfeited	(6,659	)			(49,482	)
Outstanding, end of period	516,579		$	58.53	606,859		$	42.75

____________

(1) A portion of the vested RSUs delivered were net share settled to cover statutory requirements for income and other employment taxes, at the individual participant’s election. We remit the equivalent cash to the appropriate taxing authorities. These net share settlements had the effect of share repurchases by us as we reduced and retired the number of shares that would have otherwise been issued as a result of the vesting.

Schedule of Stockholders' Equity Note, Warrants or Rights

Activity relating to the 2016 Warrants was as follows for the periods presented:

	Six Months Ended
	July 3, 2016			June 28, 2015
Outstanding, beginning of period	2,497,971			2,500,001
Exercised	(2,496,493		)	—
Forfeited	(1,478		)	—
Outstanding, end of period	—			2,500,001
Cash received for exercise (in thousands)	$	10,487		$	—
Common shares issued	631,023			—

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Commitments and Contingencies (Tables)

6 Months Ended

Jul. 03, 2016

Commitments and Contingencies Disclosure [Abstract]

Minimum payments under non-cancelable operating leases and service agreements

Minimum payments, for the following future periods, under non-cancelable operating leases and service agreements with initial or remaining terms of one year or more consist of the following:

(In thousands)
Fiscal year:
2016 (remaining six months)	$	10,072
2017	19,487
2018	18,064
2019	16,587
2020	14,383
Thereafter	84,433
Total future minimum lease payments	$	163,026

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Restructuring Costs (Tables)

6 Months Ended

Jul. 03, 2016

Restructuring and Related Activities [Abstract]

Total restructuring costs by plan

The following table summarizes the restructuring charges recorded for the periods indicated:

	Three Months Ended June 28, 2015
(In thousands)	North American Residential		Europe		Corporate & Other		Total
2015 Plan	$	—	$	415	$	519	$	934
2013 Plan	2		52		—		54
Total Restructuring Costs	$	2	$	467	$	519	$	988

	Six Months Ended June 28, 2015
(In thousands)	North American Residential		Europe		Corporate & Other		Total
2015 Plan	$	—	$	2,102	$	1,143	$	3,245
2013 Plan	6		93		—		99
Total Restructuring Costs	$	6	$	2,195	$	1,143	$	3,344

	Cumulative Amount Incurred Through July 3, 2016
(In thousands)	North American Residential		Europe		Corporate & Other		Total
2015 Plan	$	—	$	2,337	$	3,063	$	5,400
2014 Plan	—		—		9,503		9,503
2013 Plan	3,025		2,733		2,157		7,915
2012 and Prior Plans	2,378		12,695		3,609		18,682
Total Restructuring Costs	$	5,403	$	17,765	$	18,332	$	41,500

Schedule of restructuring reserve by type of cost

The changes in the accrual for restructuring by activity were as follows for the periods indicated:

(In thousands)	January 3, 2016		Severance			Closure Costs		Cash Payments		July 3, 2016
2015 Plan	$	774	$	(111	)	$	27	$	449	$	241
2014 Plan	442		—			—		16		426
2013 Plan	316		—			—		316		—
2012 and Prior Plans	858		—			—		286		572
Total	$	2,390	$	(111	)	$	27	$	1,067	$	1,239

(In thousands)	December 28, 2014		Severance		Closure Costs		Cash Payments		June 28, 2015
2015 Plan	$	—	$	1,911	$	1,334	$	2,485	$	760
2014 Plan	839		—		—		319		520
2013 Plan	341		—		99		118		322
2012 and Prior Plans	1,153		—		—		326		827
Total	$	2,333	$	1,911	$	1,433	$	3,248	$	2,429

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Income Taxes (Tables)

6 Months Ended

Jul. 03, 2016

Income Tax Disclosure [Abstract]

Income tax expense (benefit) for income taxes

Income tax expense (benefit) for income taxes consists of the following:

	Three Months Ended					Six Months Ended
(In thousands)	July 3, 2016			June 28, 2015		July 3, 2016		June 28, 2015
Current	$	3,050		$	2,238	$	4,892	$	3,737
Deferred	(195		)	12,775		4,173		14,540
Income tax expense (benefit)	$	2,855		$	15,013	$	9,065	$	18,277

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Supplemental Cash Flow Information (Tables)

6 Months Ended

Jul. 03, 2016

Supplemental Cash Flow Elements [Abstract]

Cash and non-cash transactions

Certain cash and non-cash transactions were as follows for the periods indicated:

	Six Months Ended
(In thousands)	July 3, 2016		June 28, 2015
Transactions involving cash:
Interest paid	$	13,493	$	19,951
Interest received	137		340
Income taxes paid	4,918		3,538
Income tax refunds	402		9
Non-cash transactions:
Property, plant and equipment additions in accounts payable	2,848		3,864

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Segment Information (Tables)

6 Months Ended

Jul. 03, 2016

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Certain information with respect to segments is as follows for the periods indicated:

(In thousands)	Three Months Ended July 3, 2016
(In thousands)	North American Residential			Europe			Architectural			Corporate & Other			Total
Net sales	$	349,929		$	83,559		$	81,592		$	5,951		$	521,031
Intersegment sales	(1,756		)	(1,344		)	(3,946		)	—			(7,046		)
Net sales to external customers	$	348,173		$	82,215		$	77,646		$	5,951		$	513,985
Adjusted EBITDA	$	55,666		$	12,839		$	7,672		$	(7,661	)	$	68,516

(In thousands)	Three Months Ended June 28, 2015
(In thousands)	North American Residential			Europe		Architectural			Corporate & Other			Total
Net sales	$	305,826		$	77,074	$	78,488		$	18,450		$	479,838
Intersegment sales	(933		)	—		(2,477		)	—			(3,410		)
Net sales to external customers	$	304,893		$	77,074	$	76,011		$	18,450		$	476,428
Adjusted EBITDA	$	46,713		$	8,053	$	8,185		$	(3,894	)	$	59,057

(In thousands)	Six Months Ended July 3, 2016
(In thousands)	North American Residential			Europe			Architectural			Corporate & Other			Total
Net sales	$	680,545		$	164,166		$	157,901		$	12,424		$	1,015,036
Intersegment sales	(3,643		)	(1,360		)	(6,743		)	—			(11,746		)
Net sales to external customers	$	676,902		$	162,806		$	151,158		$	12,424		$	1,003,290
Adjusted EBITDA	$	107,041		$	22,957		$	12,103		$	(15,344	)	$	126,757

(In thousands)	Six Months Ended June 28, 2015
(In thousands)	North American Residential			Europe			Architectural			Corporate & Other			Total
Net sales	$	580,467		$	152,177		$	147,878		$	37,698		$	918,220
Intersegment sales	(2,306		)	(78		)	(4,943		)	—			(7,327		)
Net sales to external customers	$	578,161		$	152,099		$	142,935		$	37,698		$	910,893
Adjusted EBITDA	$	76,060		$	14,622		$	12,215		$	(6,052	)	$	96,845

Reconciliation of consolidated Adjusted EBITDA to net income (loss) attributable to Masonite

A reconciliation of our consolidated Adjusted EBITDA to net income (loss) attributable to Masonite is set forth as follows for the periods indicated:

	Three Months Ended						Six Months Ended
(In thousands)	July 3, 2016			June 28, 2015			July 3, 2016			June 28, 2015
Adjusted EBITDA	$	68,516		$	59,057		$	126,757		$	96,845
Less (plus):
Depreciation	14,813			14,410			29,383			29,716
Amortization	6,518			4,975			12,982			9,986
Share based compensation expense	4,782			3,106			8,510			5,485
Loss (gain) on disposal of property, plant and equipment	260			350			392			294
Restructuring costs	(103		)	988			(84		)	3,344
Loss (gain) on disposal of subsidiaries	(1,431		)	—			(1,431		)	—
Interest expense (income), net	6,933			6,787			14,165			18,540
Loss on extinguishment of debt	—			—			—			28,046
Other expense (income), net	(801		)	(635		)	(15		)	(1,819		)
Income tax expense (benefit)	2,855			15,013			9,065			18,277
Loss (income) from discontinued operations, net of tax	184			240			372			469
Net income (loss) attributable to non-controlling interest	1,151			381			2,235			2,117
Net income (loss) attributable to Masonite	$	33,355		$	13,442		$	51,183		$	(17,610	)

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Earnings Per Share (Tables)

6 Months Ended

Jul. 03, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share

(In thousands, except share and per share information)	Three Months Ended						Six Months Ended
	July 3, 2016			June 28, 2015			July 3, 2016			June 28, 2015
Net income (loss) attributable to Masonite	$	33,355		$	13,442		$	51,183		$	(17,610	)
Less: income (loss) from discontinued operations, net of tax	(184		)	(240		)	(372		)	(469		)
Income (loss) from continuing operations attributable to Masonite	$	33,539		$	13,682		$	51,555		$	(17,141	)
Shares used in computing basic earnings per share	30,577,589			30,244,869			30,536,282			30,151,182
Effect of dilutive securities:
Incremental shares issuable under share compensation plans and warrants	754,075			1,448,955			737,480			—
Shares used in computing diluted earnings per share	31,331,664			31,693,824			31,273,762			30,151,182
Basic earnings (loss) per common share attributable to Masonite:
Continuing operations attributable to Masonite	$	1.10		$	0.45		$	1.69		$	(0.57	)
Discontinued operations attributable to Masonite, net of tax	(0.01		)	(0.01		)	(0.01		)	(0.01		)
Total Basic earnings per common share attributable to Masonite	$	1.09		$	0.44		$	1.68		$	(0.58	)
Diluted earnings (loss) per common share attributable to Masonite:
Continuing operations attributable to Masonite	$	1.07		$	0.43		$	1.65		$	(0.57	)
Discontinued operations attributable to Masonite, net of tax	(0.01		)	(0.01		)	(0.01		)	(0.01		)
Total Diluted earnings per common share attributable to Masonite	$	1.06		$	0.42		$	1.64		$	(0.58	)
Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share:
Warrants	—			—			—			2,500,001
Stock appreciation rights	—			—			—			420,137
Restricted stock units	—			—			—			415,113

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Other Comprehensive Income and Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jul. 03, 2016

Equity [Abstract]

Schedule of components of accumulated other comprehensive income (loss)

A rollforward of the components of accumulated other comprehensive income (loss) is as follows for the periods indicated:

	Three Months Ended						Six Months Ended
(In thousands)	July 3, 2016			June 28, 2015			July 3, 2016			June 28, 2015
Accumulated foreign exchange gains (losses), beginning of period	$	(86,726	)	$	(91,928	)	$	(90,111	)	$	(57,473	)
Foreign exchange gain (loss)	(12,486		)	9,204			(8,614		)	(25,936		)
Cumulative translation adjustment recognized upon deconsolidation of subsidiary	(1,431		)	—			(1,431		)	—
Less: foreign exchange gain (loss) attributable to non-controlling interest	243			115			730			(570		)
Accumulated foreign exchange gains (losses), end of period	(100,886		)	(82,839		)	(100,886		)	(82,839		)
Accumulated pension and other post-retirement adjustments, beginning of period	(17,691		)	(18,653		)	(17,837		)	(18,786		)
Amortization of actuarial net losses	242			220			484			440
Income tax benefit (expense) on amortization of actuarial net losses	(95		)	(87		)	(191		)	(174		)
Accumulated pension and other post-retirement adjustments	(17,544		)	(18,520		)	(17,544		)	(18,520		)
Accumulated other comprehensive income (loss)	$	(118,430	)	$	(101,359	)	$	(118,430	)	$	(101,359	)
Other comprehensive income (loss), net of tax	$	(13,770	)	$	9,337		$	(9,752	)	$	(25,670	)
Less: other comprehensive income (loss) attributable to non-controlling interest	243			115			730			(570		)
Other comprehensive income (loss) attributable to Masonite	$	(14,013	)	$	9,222		$	(10,482	)	$	(25,100	)

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Variable Interest Entity (Tables)

6 Months Ended

Jul. 03, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated results of the VIE

Our net cumulative investment in the VIE was comprised of the following as of the dates indicated:

(In thousands)	July 3, 2016			January 3, 2016
Current assets	$	11,377		$	9,987
Property, plant and equipment, net	14,480			15,638
Long-term deferred income taxes	8,288			9,121
Other assets, net	1,753			2,270
Current liabilities	(2,104		)	(5,133		)
Other long-term liabilities	(3,179		)	(2,944		)
Non-controlling interest	(5,519		)	(4,981		)
Net assets of the VIE consolidated by Masonite	$	25,096		$	23,958

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Business Overview and Significant Accounting Policies (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 03, 2016 USD ($) Country facility	Jun. 28, 2015 USD ($)	Jul. 03, 2016 USD ($) Country facility	Jun. 28, 2015 USD ($)	Jan. 03, 2016 USD ($)
Retained Earnings Adjustments [Line Items]
Increase to previously-presented retained earnings					$ 34,376
Income tax expense (benefit)	$ 2,855	$ 15,013	$ 9,065	$ 18,277
Number of manufacturing locations | facility	64		64
Number of countries | Country	9		9
New Accounting Pronouncement, Early Adoption, Effect [Member]
Retained Earnings Adjustments [Line Items]
Increase to previously-presented retained earnings					$ 34,376
Income tax expense (benefit)	$ 6,200

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Acquisitions (Narrative) (Details) - USD ($) $ in Thousands				6 Months Ended
	Oct. 01, 2015	Aug. 05, 2015	Jul. 23, 2015	Jul. 03, 2016	Jun. 28, 2015
Business Acquisition [Line Items]
Cash consideration, net of cash acquired				$ 599	$ 0
National Hickman
Business Acquisition [Line Items]
Cash consideration, net of cash acquired		$ 87,976
Acquired equity interests, percent		100.00%
Goodwill		$ 18,215
Gross contractual value of acquired trade receivables		$ 21,000
Performance Doorset Solutions
Business Acquisition [Line Items]
Cash consideration, net of cash acquired			$ 15,724
Acquired equity interests, percent			100.00%
Goodwill			$ 3,145
Gross contractual value of acquired trade receivables			$ 2,600
USA Wood Door
Business Acquisition [Line Items]
Cash consideration, net of cash acquired	$ 13,698
Acquired equity interests, percent	100.00%
Goodwill	$ 8,921
Gross contractual value of acquired trade receivables	$ 1,700
Customer Relationships | National Hickman
Business Acquisition [Line Items]
Amortization period for acquired customer relationships		9 years 7 months 9 days
Customer Relationships | Performance Doorset Solutions
Business Acquisition [Line Items]
Amortization period for acquired customer relationships			9 years 8 months 16 days

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Acquisitions (Aggregate Consideration) (Details) - USD ($) $ in Thousands				6 Months Ended		12 Months Ended
	Oct. 01, 2015	Aug. 05, 2015	Jul. 23, 2015	Jul. 03, 2016	Jun. 28, 2015	Jan. 03, 2016
Business Acquisition [Line Items]
Cash consideration, net of cash acquired				$ 599	$ 0
USA Wood Door
Business Acquisition [Line Items]
Accounts receivable	$ 2,235
Inventory	1,677
Property, plant and equipment	2,600
Goodwill	8,921
Intangible assets	0
Accounts payable and accrued expenses	(1,654)
Other assets and liabilities, net	(81)
Cash consideration, net of cash acquired	$ 13,698
National Hickman
Business Acquisition [Line Items]
Accounts receivable		$ 20,870
Inventory		11,090
Property, plant and equipment		14,057
Goodwill		18,215
Intangible assets		55,634
Accounts payable and accrued expenses		(23,972)
Other assets and liabilities, net		(7,918)
Cash consideration, net of cash acquired		$ 87,976
Performance Doorset Solutions
Business Acquisition [Line Items]
Accounts receivable			$ 3,000
Inventory			1,438
Property, plant and equipment			5,684
Goodwill			3,145
Intangible assets			6,437
Accounts payable and accrued expenses			(2,218)
Other assets and liabilities, net			(1,762)
Cash consideration, net of cash acquired			$ 15,724
Business Acquisitions 2015
Business Acquisition [Line Items]
Accounts receivable						$ 26,105
Inventory						14,205
Property, plant and equipment						22,341
Goodwill						30,281
Intangible assets						62,071
Accounts payable and accrued expenses						(27,844)
Other assets and liabilities, net						(9,761)
Cash consideration, net of cash acquired						$ 117,398

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Acquisitions (Revenues and Earnings) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 03, 2016	Jul. 03, 2016
USA Wood Door
Business Acquisition [Line Items]
Net Sales	$ 4,877	$ 9,372
Net income (loss) attributable to Masonite	1,088	1,586
National Hickman
Business Acquisition [Line Items]
Net Sales	27,585	53,340
Net income (loss) attributable to Masonite	1,171	3,310
Performance Doorset Solutions
Business Acquisition [Line Items]
Net Sales	4,416	8,967
Net income (loss) attributable to Masonite	(210)	(60)
Business Acquisitions 2015
Business Acquisition [Line Items]
Net Sales	36,878	71,679
Net income (loss) attributable to Masonite	$ 2,049	$ 4,836

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Acquisitions (Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Business Acquisition, Pro Forma Information [Line Items]
Net sales	$ 513,985	$ 476,428	$ 1,003,290	$ 910,893
Pro forma revenue		508,214		975,054
Net income (loss) attributable to Masonite	$ 33,355	13,442	$ 51,183	(17,610)
Pro forma net income (loss) attributable to Masonite		14,230		(15,748)
Pro forma intercompany sales		(5,139)		(9,377)
Pro forma net income resulting from intercompany sales		$ (931)		$ (1,623)
Basic earnings per common share attributable to Masonite (in dollars per share)	$ 1.09	$ 0.44	$ 1.68	$ (0.58)
Pro forma earnings per share, basic (in dollars per share)		0.47		(0.52)
Diluted earnings per common share attributable to Masonite (in dollars per share)	$ 1.06	0.42	$ 1.64	(0.58)
Pro forma earnings per share, diluted (in dollars per share)		$ 0.45		$ (0.52)
Business Acquisitions 2015
Business Acquisition, Pro Forma Information [Line Items]
Pro forma revenue		$ 36,925		$ 73,538
Pro forma net income (loss) attributable to Masonite		$ 1,719		$ 3,485

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Acquisitions and Dispositions Dispositions (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015	Jan. 03, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Loss (gain) on disposal of subsidiaries	$ 1,431	$ 0	$ 1,431	$ 0
Equity investment in MAL	10,000		10,000		$ 10,000
Premdor, S.A.S. [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Losses from Premdor S.A.S. from continuing operations	$ (1,100)		$ (3,200)

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Goodwill and Intangible Assets (Schedule of Goodwill) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jul. 03, 2016	Jul. 03, 2016	Jan. 03, 2016
Goodwill [Roll Forward]
Goodwill, beginning		$ 128,170
Measurement period adjustment	$ 600
Goodwill, ending	124,596	124,596	$ 128,170
North American Residential
Goodwill [Roll Forward]
Goodwill, beginning		2,835	2,891
Goodwill from acquisitions			0
Measurement period adjustment		0
Foreign exchange fluctuations		24	(56)
Goodwill, ending	2,859	2,859	2,835
Europe
Goodwill [Roll Forward]
Goodwill, beginning		39,306	19,008
Goodwill from acquisitions			21,360
Measurement period adjustment		0
Foreign exchange fluctuations		(4,420)	(1,062)
Goodwill, ending	34,886	34,886	39,306
Architectural
Goodwill [Roll Forward]
Goodwill, beginning		86,029	77,300
Goodwill from acquisitions			8,921
Measurement period adjustment		599
Foreign exchange fluctuations		223	(192)
Goodwill, ending	86,851	86,851	86,029
Operating Segments
Goodwill [Roll Forward]
Goodwill, beginning		128,170	99,199
Goodwill from acquisitions			30,281
Measurement period adjustment		599
Foreign exchange fluctuations		(4,173)	(1,310)
Goodwill, ending	$ 124,596	$ 124,596	$ 128,170

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Goodwill and Intangible Assets (Cost and Accumulated Amortized Values) (Details) - USD ($) $ in Thousands	Jul. 03, 2016	Jan. 03, 2016
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 228,910	$ 227,680
Finite-lived intangible assets, accumulated amortization	(108,717)	(96,233)
Finite-lived intangible assets, translation adjustment	(14,388)	(8,308)
Finite-lived intangible assets, net	105,805	123,139
Total intangible assets, gross	340,448	339,218
Total intangible assets, translation adjustment	(24,471)	(17,053)
Total intangible assets, net	207,260	225,932
Customer Relationships
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	155,927	155,927
Finite-lived intangible assets, accumulated amortization	(56,780)	(48,025)
Finite-lived intangible assets, translation adjustment	(11,623)	(5,648)
Finite-lived intangible assets, net	87,524	102,254
Patents
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	30,344	29,643
Finite-lived intangible assets, accumulated amortization	(18,337)	(17,168)
Finite-lived intangible assets, translation adjustment	(815)	(885)
Finite-lived intangible assets, net	11,192	11,590
Software
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	30,359	29,830
Finite-lived intangible assets, accumulated amortization	(24,991)	(23,187)
Finite-lived intangible assets, translation adjustment	(180)	(208)
Finite-lived intangible assets, net	5,188	6,435
Other
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, gross	12,280	12,280
Finite-lived intangible assets, accumulated amortization	(8,609)	(7,853)
Finite-lived intangible assets, translation adjustment	(1,770)	(1,567)
Finite-lived intangible assets, net	1,901	2,860
Trademarks and Trade Names
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets, accumulated amortization	0	0
Indefinite-lived intangible assets, gross	111,538	111,538
Indefinite-lived intangible assets, net	101,455	102,793
Total intangible assets, translation adjustment	$ (10,083)	$ (8,745)

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Goodwill and Intangible Assets (Estimated Future Amortization of Intangible Assets) (Details) $ in Thousands	Jul. 03, 2016 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2016 (remaining six months)	$ 11,188
2017	20,968
2018	15,789
2019	14,694
2020	$ 12,333

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Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Mar. 29, 2015	Jul. 03, 2016	Jun. 28, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Measurement period adjustment	$ 0.6
Amortization of intangible assets	$ 6.3	$ 4.7	$ 12.5	$ 9.4

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Accounts Receivable (Details) $ in Millions	6 Months Ended	12 Months Ended
	Jul. 03, 2016 USD ($) Customer	Jan. 03, 2016 USD ($) Customer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for doubtful accounts | $	$ 1.6	$ 3.1
Accounts Receivable | Customer Concentration Risk
Accounts, Notes, Loans and Financing Receivable [Line Items]
Concentration risk, customers | Customer	10	10
Concentration risk, percent	59.60%	54.10%

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Inventories (Details) - USD ($) $ in Thousands	Jul. 03, 2016	Jan. 03, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 167,059	$ 145,856
Finished goods	72,833	69,045
Provision for obsolete or aged inventory	(5,955)	(6,508)
Inventories, net	$ 233,937	$ 208,393

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Property, Plant and Equipment (Details) - USD ($) $ in Thousands	Jul. 03, 2016	Jan. 03, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 758,683	$ 732,289
Accumulated depreciation	(224,247)	(198,055)
Property, plant and equipment, net	534,436	534,234
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	25,306	25,316
Buildings
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	163,161	155,709
Machinery and equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 570,216	$ 551,264

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Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Property, Plant and Equipment [Abstract]
Depreciation	$ 14,813	$ 14,410	$ 29,383	$ 29,716
Business interruption insurance proceeds		$ 1,200		$ 1,200

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Long-Term Debt (Details) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
	Mar. 23, 2015	Jul. 03, 2016	Jan. 03, 2016
Debt Instrument [Line Items]
Capital lease obligations and other long-term debt		$ 1,407	$ 88
Other long-term debt		390	0
Total long-term debt		470,984	468,856
Senior Notes | Senior Notes Due 2023
Debt Instrument [Line Items]
Long-term debt		475,000	475,000
Debt issuance cost	$ (7,100)	$ (5,813)	$ (6,232)

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Long-Term Debt (Narrative) (Details) - USD ($)				3 Months Ended			6 Months Ended		12 Months Ended
	Apr. 09, 2015	Mar. 23, 2015	Mar. 23, 2015	Jul. 03, 2016	Apr. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015	Jan. 03, 2016	May 31, 2011
Debt Instrument [Line Items]
Proceeds from issuance of long-term debt							$ 390,000	$ 475,000,000
Loss on extinguishment of debt				$ 0		$ 0	0	(28,046,000)
Senior Notes | Senior Notes Due 2021, Redemption
Debt Instrument [Line Items]
Debt issuance cost			$ 7,800,000
Redemption premium			31,700,000
Unamortized premium on Senior Notes		$ (11,500,000)	(11,500,000)
Loss on extinguishment of debt			28,000,000
Senior Notes | Senior Notes Due 2021
Debt Instrument [Line Items]
Extinguishment of debt		500,000,000
Senior Notes | Senior Notes Due 2023
Debt Instrument [Line Items]
Interest expense				6,900,000			13,900,000
Debt Instrument, Face Amount		$ 475,000,000	475,000,000
Interest rate stated percentage									5.625%
Proceeds from issuance of long-term debt									$ 467,900,000
Debt issuance cost			$ 7,100,000				$ 5,813,000		6,232,000
Senior Notes | Senior Notes Due 2023 | Debt Instrument, Redemption, Period One
Debt Instrument [Line Items]
Redemption price, percentage					100.00%
Redemption price, premium, percentage					1.00%
Senior Notes | Senior Notes Due 2023 | Debt Instrument, Redemption, Period Two
Debt Instrument [Line Items]
Redemption price, premium, percentage							0.50%
Senior Notes | Senior Notes Due 2023 | Debt Instrument, Redemption, Period Three
Debt Instrument [Line Items]
Redemption price, percentage					101.00%
Senior Notes | Senior Notes Due 2021 and 2023
Debt Instrument [Line Items]
Interest expense						$ 6,700,000		$ 17,800,000
Revolving Credit Facility | ABL Facility 2020
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 150,000,000
Maximum pro forma secured leverage ratio							4.5
Line of credit, amount outstanding				$ 0			$ 0		$ 0
Revolving Credit Facility | ABL Facility 2016
Debt Instrument [Line Items]
Maximum borrowing capacity										$ 125,000,000.0
Minimum | Revolving Credit Facility | ABL Facility 2020
Debt Instrument [Line Items]
Unutilized commitment fee percentage							0.25%
Minimum | Revolving Credit Facility | ABL Facility 2020 | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate							0.25%
Minimum | Revolving Credit Facility | ABL Facility 2020 | Eurodollar Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.25%
Maximum | Revolving Credit Facility | ABL Facility 2020 | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate							0.75%
Maximum | Revolving Credit Facility | ABL Facility 2020 | Eurodollar Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.75%

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Share Based Compensation Plans Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended
	Jul. 12, 2012	Jan. 01, 2012	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015	Jan. 03, 2016	Dec. 28, 2014	Jun. 09, 2012	Jun. 09, 2009
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation			$ 4,782	$ 3,106	$ 8,510	$ 5,485
Share based compensation unrecognized			20,200		$ 20,200
Weighted average remaining requisite service period					1 year 10 months 29 days
Deferred compensation liability			3,000		$ 3,000
Deferred compensation asset			$ 3,000		$ 3,000
Dividends, per share, cash paid		$ 4.54
Warrants issued				2,500,001		2,500,001		2,500,001		5,833,335
Exercise price of warrants		$ 50.77								$ 55.31
Expiration June 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued										3,333,334
Expiration June 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Warrants issued			0		0		2,497,971			2,500,001
2009 Plan | Management | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage ownership of common equity									9.55%
Equity awards not to exceed									3,554,811
2009 Plan | Director | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage ownership of common equity									0.90%
Equity awards not to exceed									335,004
2012 Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan term	10 years
2012 Plan | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity awards not to exceed	2,000,000
Common stock available for future issuance			1,516,247		1,516,247
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Plan term					10 years
Award vesting period					3 years
Fair value of shares vested						$ 400
Average requisite service period					2 years
Award granted, fair value					$ 2,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period					3 years
Fair value of shares vested					$ 8,400
Average requisite service period					2 years 7 months 9 days
Units vested					287,464
Award granted, fair value					$ 13,000
Service Requirement | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					50.00%
Service and Performance Requirements | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage					50.00%

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Share Based Compensation Plans (SARs) (Details) - Stock Appreciation Rights (SARs) - USD ($) $ / shares in Units, $ in Thousands					6 Months Ended
	Jul. 03, 2016	Jan. 03, 2016	Jun. 28, 2015	Dec. 28, 2014	Jul. 03, 2016	Jun. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, beginning of period, shares					891,147	1,231,468
Granted, shares					121,805	0
Exercised, shares					(134,910)	(308,770)
Cancelled, shares					(2,400)	(4,584)
Outstanding, end of period, shares	875,642	891,147	918,114	1,231,468	875,642	918,114
Exercisable, shares	568,917		697,577		568,917	697,577
Share-based Compensation Arrangement by Share-based Payment Award, Options, Aggregate Intrinsic Value & Average Remaining Contractual Life [Abstract]
Outstanding, beginning of period, aggregate intrinsic value					$ 36,681	$ 48,516
Exercised, aggregate intrinsic value					7,293	15,205
Outstanding, end period, aggregate intrinsic value	$ 36,008	$ 36,681	$ 46,400	$ 48,516	36,008	46,400
Exercisable, aggregate intrinsic value	$ 28,550		$ 37,727		$ 28,550	$ 37,727
Outstanding, beginning of period, weighted average remaining contractual term	5 years 4 months 26 days	4 years 10 months 29 days	5 years 6 months 3 days	5 years 10 months 29 days
Outstanding, end of period, weighted average remaining contractual term	5 years 4 months 26 days	4 years 10 months 29 days	5 years 6 months 3 days	5 years 10 months 29 days
Exercisable, weighted average remaining contractual term	3 years 10 months 29 days		4 years 9 months 22 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Outstanding, beginning of period, weighted average exercise price					$ 20.07	$ 19.59
Granted, weighted average exercise price					58.37	0
Exercised, weighted average exercise price					14.12	16.82
Forfeited, weighted average exercise price					26.33	32.26
Outstanding, end of period, weighted average exercise price	$ 26.28	$ 20.07	$ 20.26	$ 19.59	26.28	20.26
Exercisable, weighted average exercise price	$ 17.22		$ 16.72		$ 17.22	$ 16.72

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Share Based Compensation Plans (Weighted Average Grant Date Assumptions) (Details)	6 Months Ended
	Jul. 03, 2016 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option value (model conclusion)	$ 16.78
Risk-free rate	1.60%
Expected dividend yield	0.00%
Expected volatility	26.20%
Expected term (in years)	6 years

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Share Based Compensation Plans (RSUs) (Details) - Restricted Stock Units (RSUs) - $ / shares	6 Months Ended
	Jul. 03, 2016		Jun. 28, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, beginning of period (shares)	526,930		543,373
Granted (shares)	283,772		192,653
Delivered (shares)	(228,090)		(70,557)
Withheld to cover (shares)	(59,374)	[1]	(9,128)
Cancelled (shares)	(6,659)		(49,482)
Outstanding, end of period (shares)	516,579		606,859
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Outstanding, beginning of period (weighted average grant date fair value)	$ 49.31		$ 34.56
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	45.74		61.38
Outstanding, end of period (weighted average grant date fair value)	$ 58.53		$ 42.75

[1] A portion of the vested RSUs delivered were net share settled to cover statutory requirements for income and other employment taxes, at the individual participant’s election. We remit the equivalent cash to the appropriate taxing authorities. These net share settlements had the effect of share repurchases by us as we reduced and retired the number of shares that would have otherwise been issued as a result of the vesting.

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Share Based Compensation Plans Warrants (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jan. 03, 2016
Class of Warrant or Right [Line Items]
Outstanding, beginning of period		2,500,001	2,500,001
Exercised		0
Forfeited		0
Outstanding, end of period		2,500,001
Cash received for exercise (in thousands)		$ 0
Common shares issued		0
Expiration June 2016
Class of Warrant or Right [Line Items]
Outstanding, beginning of period	2,497,971
Exercised	(2,496,493)
Forfeited	1,478
Outstanding, end of period	0		2,497,971
Cash received for exercise (in thousands)	$ 10,487
Common shares issued	631,023

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Commitments and Contingencies (Details) $ in Thousands	Jul. 03, 2016 USD ($)
Commitments and Contingencies Disclosure [Abstract]
2016 (remaining six months)	$ 10,072
2017	19,487
2018	18,064
2019	16,587
2020	14,383
Thereafter	84,433
Total future minimum lease payments	$ 163,026

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Commitments and Contingencies (Narrative) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 03, 2016 USD ($)	Jun. 28, 2015 USD ($)	Jul. 03, 2016 USD ($) Lease_Option	Jun. 28, 2015 USD ($)
Operating Leased Assets [Line Items]
Lease renewal term			5 years
Rent expense | $	$ 6.8	$ 6.0	$ 13.2	$ 11.7
Minimum
Operating Leased Assets [Line Items]
Lease renewal options			0
Maximum
Operating Leased Assets [Line Items]
Lease renewal options			3

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Restructuring Costs (Restructuring Costs by Plan) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring costs	$ (103)	$ 988	$ (84)	$ 3,344
Cumulative amount incurred to date	41,500		41,500
2015 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring costs		934		3,245
Cumulative amount incurred to date	5,400		5,400
2014 Plan
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	9,503		9,503
2013 Plan
Restructuring Cost and Reserve [Line Items]
Restructuring costs		54		99
Cumulative amount incurred to date	7,915		7,915
2012 and Prior Plans
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	18,682		18,682
Operating Segments | North American Residential
Restructuring Cost and Reserve [Line Items]
Restructuring costs		2		6
Cumulative amount incurred to date	5,403		5,403
Operating Segments | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring costs		467		2,195
Cumulative amount incurred to date	17,765		17,765
Operating Segments | Corporate & Other
Restructuring Cost and Reserve [Line Items]
Restructuring costs		519		1,143
Cumulative amount incurred to date	18,332		18,332
Operating Segments | 2015 Plan | North American Residential
Restructuring Cost and Reserve [Line Items]
Restructuring costs		0		0
Cumulative amount incurred to date	0		0
Operating Segments | 2015 Plan | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring costs		415		2,102
Cumulative amount incurred to date	2,337		2,337
Operating Segments | 2015 Plan | Corporate & Other
Restructuring Cost and Reserve [Line Items]
Restructuring costs		519		1,143
Cumulative amount incurred to date	3,063		3,063
Operating Segments | 2014 Plan | North American Residential
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	0		0
Operating Segments | 2014 Plan | Europe
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	0		0
Operating Segments | 2014 Plan | Corporate & Other
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	9,503		9,503
Operating Segments | 2013 Plan | North American Residential
Restructuring Cost and Reserve [Line Items]
Restructuring costs		2		6
Cumulative amount incurred to date	3,025		3,025
Operating Segments | 2013 Plan | Europe
Restructuring Cost and Reserve [Line Items]
Restructuring costs		52		93
Cumulative amount incurred to date	2,733		2,733
Operating Segments | 2013 Plan | Corporate & Other
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 0		$ 0
Cumulative amount incurred to date	2,157		2,157
Operating Segments | 2012 and Prior Plans | North American Residential
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	2,378		2,378
Operating Segments | 2012 and Prior Plans | Europe
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	12,695		12,695
Operating Segments | 2012 and Prior Plans | Corporate & Other
Restructuring Cost and Reserve [Line Items]
Cumulative amount incurred to date	$ 3,609		$ 3,609

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Restructuring Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			$ 2,390	$ 2,333
Restructuring Charges	$ (103)	$ 988	(84)	3,344
Cash payments			1,067	3,248
Restructuring reserve, ending balance	1,239	2,429	1,239	2,429
Severance
Restructuring Reserve [Roll Forward]
Restructuring Charges			(111)	1,911
Closure Costs
Restructuring Reserve [Roll Forward]
Restructuring Charges			27	1,433
2015 Plan
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			774	0
Restructuring Charges		934		3,245
Cash payments			449	2,485
Restructuring reserve, ending balance	241	760	241	760
2015 Plan | Severance
Restructuring Reserve [Roll Forward]
Restructuring Charges			(111)	1,911
2015 Plan | Closure Costs
Restructuring Reserve [Roll Forward]
Restructuring Charges			27	1,334
2014 Plan
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			442	839
Cash payments			16	319
Restructuring reserve, ending balance	426	520	426	520
2014 Plan | Severance
Restructuring Reserve [Roll Forward]
Restructuring Charges			0	0
2014 Plan | Closure Costs
Restructuring Reserve [Roll Forward]
Restructuring Charges			0	0
2013 Plan
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			316	341
Restructuring Charges		54		99
Cash payments			316	118
Restructuring reserve, ending balance	0	322	0	322
2013 Plan | Severance
Restructuring Reserve [Roll Forward]
Restructuring Charges			0	0
2013 Plan | Closure Costs
Restructuring Reserve [Roll Forward]
Restructuring Charges			0	99
2012 and Prior Plans
Restructuring Reserve [Roll Forward]
Restructuring reserve, beginning balance			858	1,153
Cash payments			286	326
Restructuring reserve, ending balance	$ 572	$ 827	572	827
2012 and Prior Plans | Severance
Restructuring Reserve [Roll Forward]
Restructuring Charges			0	0
2012 and Prior Plans | Closure Costs
Restructuring Reserve [Roll Forward]
Restructuring Charges			$ 0	$ 0

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Income Tax Disclosure [Abstract]
Current	$ 3,050	$ 2,238	$ 4,892	$ 3,737
Deferred	(195)	12,775	4,173	14,540
Income tax expense (benefit)	$ 2,855	$ 15,013	$ 9,065	$ 18,277

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Income Taxes (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 03, 2016	Jan. 03, 2016
Income Tax Disclosure [Abstract]
Canadian federal statutory rate	26.60%
Deferred tax asset, valuation allowance	$ 43.7	$ 40.9

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Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015
Transactions involving cash:
Interest paid	$ 13,493	$ 19,951
Interest received	137	340
Income taxes paid	4,918	3,538
Income tax refunds	402	9
Non-cash transactions:
Property, plant and equipment additions in accounts payable	$ 2,848	$ 3,864

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Segment Information (Geographic Segments Information) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 513,985	$ 476,428	$ 1,003,290	$ 910,893
Adjusted EBITDA	68,516	59,057	126,757	96,845
Operating Segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	521,031	479,838	1,015,036	918,220
Intersegment Eliminations
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	(7,046)	(3,410)	(11,746)	(7,327)
North American Residential
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	348,173	304,893	676,902	578,161
Adjusted EBITDA	55,666	46,713	107,041	76,060
North American Residential | Operating Segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	349,929	305,826	680,545	580,467
North American Residential | Intersegment Eliminations
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	(1,756)	(933)	(3,643)	(2,306)
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	82,215	77,074	162,806	152,099
Adjusted EBITDA	12,839	8,053	22,957	14,622
Europe | Operating Segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	83,559	77,074	164,166	152,177
Europe | Intersegment Eliminations
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	(1,344)	0	(1,360)	(78)
Architectural
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	77,646	76,011	151,158	142,935
Adjusted EBITDA	7,672	8,185	12,103	12,215
Architectural | Operating Segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	81,592	78,488	157,901	147,878
Architectural | Intersegment Eliminations
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	(3,946)	(2,477)	(6,743)	(4,943)
Corporate & Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	5,951	18,450	12,424	37,698
Adjusted EBITDA	(7,661)	(3,894)	(15,344)	(6,052)
Corporate & Other | Operating Segments
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	5,951	18,450	12,424	37,698
Corporate & Other | Intersegment Eliminations
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 0	$ 0	$ 0	$ 0

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Segment Information (Reconciliation of Consolidated Adjusted EBITDA to Net Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Segment Reporting [Abstract]
Adjusted EBITDA	$ 68,516	$ 59,057	$ 126,757	$ 96,845
Depreciation	14,813	14,410	29,383	29,716
Amortization	6,518	4,975	12,982	9,986
Share based compensation expense	4,782	3,106	8,510	5,485
Loss (gain) on disposal of property, plant and equipment	260	350	392	294
Restructuring costs	(103)	988	(84)	3,344
Loss (gain) on disposal of subsidiaries	(1,431)	0	(1,431)	0
Interest expense (income), net	6,933	6,787	14,165	18,540
Loss on extinguishment of debt	0	0	0	28,046
Other expense (income), net	(801)	(635)	(15)	(1,819)
Income tax expense (benefit)	2,855	15,013	9,065	18,277
Loss (income) from discontinued operations, net of tax	184	240	372	469
Net income (loss) attributable to non-controlling interest	1,151	381	2,235	2,117
Net income (loss) attributable to Masonite	$ 33,355	$ 13,442	$ 51,183	$ (17,610)

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Fair Value of Financial Instruments (Details) - Senior Notes - Fair Value, Inputs, Level 2 - USD ($) $ in Millions	Jul. 03, 2016	Jan. 03, 2016
Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value of senior notes	$ 489.4	$ 484.3
Reported Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value of senior notes	$ 469.2	$ 468.8

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Net income (loss) attributable to Masonite	$ 33,355	$ 13,442	$ 51,183	$ (17,610)
Less: income (loss) from discontinued operations, net of tax	(184)	(240)	(372)	(469)
Income (loss) from continuing operations attributable to Masonite	$ 33,539	$ 13,682	$ 51,555	$ (17,141)
Effect of dilutive securities:
Shares used in computing basic earnings per share	30,577,589	30,244,869	30,536,282	30,151,182
Incremental shares issuable under share compensation plans and warrants	754,075	1,448,955	737,480	0
Shares used in computing diluted earnings per share	31,331,664	31,693,824	31,273,762	30,151,182
Basic earnings (loss) per common share attributable to Masonite:
Continuing operations attributable to Masonite	$ 1.10	$ 0.45	$ 1.69	$ (0.57)
Discontinued operations attributable to Masonite, net of tax	(0.01)	(0.01)	(0.01)	(0.01)
Total Basic earnings per common share attributable to Masonite	1.09	0.44	1.68	(0.58)
Continuing operations attributable to Masonite	1.07	0.43	1.65	(0.57)
Discontinued operations attributable to Masonite, net of tax	(0.01)	(0.01)	(0.01)	(0.01)
Total Diluted earnings per common share attributable to Masonite	$ 1.06	$ 0.42	$ 1.64	$ (0.58)
Warrants
Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share:
Antidilutive securities excluded from computation of earnings per share, amount	0	0	0	2,500,001
Stock appreciation rights
Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share:
Antidilutive securities excluded from computation of earnings per share, amount	0	0	0	420,137
Restricted stock units
Incremental shares issuable from anti-dilutive instruments excluded from diluted earnings per common share:
Antidilutive securities excluded from computation of earnings per share, amount	0	0	0	415,113

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Other Comprehensive Income and Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jul. 03, 2016	Jun. 28, 2015	Jul. 03, 2016	Jun. 28, 2015	Jan. 03, 2016
Accumulated Foreign Exchange Gains (Losses) [Roll Forward]
Accumulated foreign exchange gains (losses), beginning of period	$ (86,726)	$ (91,928)	$ (90,111)	$ (57,473)	$ (57,473)
Foreign exchange gain (loss)	(12,486)	9,204	(8,614)	(25,936)
Cumulative translation adjustment recognized upon deconsolidation of subsidiary	(1,431)	0	(1,431)	0
Less: foreign exchange gain (loss) attributable to non-controlling interest	243	115	730	(570)
Accumulated foreign exchange gains (losses), end of period	(100,886)	(82,839)	(100,886)	(82,839)	(90,111)
Accumulated Amortization of Actuarial Net Losses [Roll Forward]
Accumulated pension and other post-retirement adjustments, beginning of period	(17,691)	(18,653)	(17,837)	18,786	18,786
Amortization of actuarial net losses	242	220	484	440
Income tax benefit (expense) on amortization of actuarial net losses	(95)	(87)	(191)	(174)
Accumulated pension and other post-retirement adjustments	(17,544)	(18,520)	(17,544)	(18,520)	(17,837)
Accumulated other comprehensive income (loss)	(118,430)	(101,359)	(118,430)	(101,359)	(107,948)
Other comprehensive income (loss), net of tax	(13,770)	9,337	(9,752)	(25,670)	$ (32,789)
Less: other comprehensive income (loss) attributable to non-controlling interest	243	115	730	(570)
Other comprehensive income (loss) attributable to Masonite	$ (14,013)	$ 9,222	$ (10,482)	$ (25,100)

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Variable Interest Entity (Details) - USD ($) $ in Thousands	Jul. 03, 2016	Jan. 03, 2016
Variable Interest Entity [Line Items]
Current assets	$ 607,997	$ 558,946
Property, plant and equipment, net	534,436	534,234
Long-term deferred income taxes	11,047	16,899
Other assets, net	17,522	16,157
Current liabilities	(246,014)	(232,518)
Other long-term liabilities	(41,521)	(43,527)
Net assets of the VIE consolidated by Masonite	686,220	642,387
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Current assets	11,377	9,987
Property, plant and equipment, net	14,480	15,638
Long-term deferred income taxes	8,288	9,121
Other assets, net	1,753	2,270
Current liabilities	(2,104)	(5,133)
Other long-term liabilities	(3,179)	(2,944)
Non-controlling interest	(5,519)	(4,981)
Net assets of the VIE consolidated by Masonite	$ 25,096	$ 23,958

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Variable Interest Entity (Narrative) (Details) $ in Thousands	Jul. 03, 2016 USD ($)	Jan. 03, 2016 USD ($)	Jun. 28, 2015 USD ($)	Dec. 28, 2014 USD ($)
Variable Interest Entity [Line Items]
Cash and cash equivalents	$ 62,370	$ 89,187	$ 136,305	$ 192,037
Variable Interest Entity, Primary Beneficiary
Variable Interest Entity [Line Items]
Number of variable interest entities	1	1
Cash and cash equivalents	$ 6,300	$ 2,100

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Subsequent Event Narrative (Details) - Forecast - ZAR / shares shares in Millions	Aug. 29, 2016	Aug. 10, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from the sale of equity investee	ZAR 30
Number of shares owned in equity investee		5.6