v3.26.1
Divestiture
6 Months Ended
Jun. 27, 2026
Discontinued Operations and Disposal Groups [Abstract]  
Divestiture Divestiture
Court-Ordered Divestiture of Towanda
On January 17, 2025, pursuant to an order issued by the United States District Court for the Eastern District of Virginia, Richmond Division, JWI completed the sale of its Towanda, PA operations to WG Towanda LLC, a wholly owned subsidiary of Woodgrain Inc., for $115.0 million, subject to certain adjustments and closing conditions. Towanda was previously included within the North America segment.
Because the Company continued manufacturing door skins for its internal needs, the court-ordered divestiture did not represent a strategic shift and, therefore, did not qualify as a discontinued operation.
During the first quarter of 2025, we recorded a $0.7 million pre-tax gain on the sale of Towanda within SG&A in the unaudited condensed consolidated statement of operations, driven by a post-close net working capital adjustment. Towanda had a net carrying value of $110.8 million, consisting primarily of property and equipment, net of $65.4 million, inventories of $16.7 million, trade receivables of $8.8 million, operating lease assets, net of $2.2 million, intangible assets, net of $1.5 million, and goodwill of $33.6 million, partially offset by accounts payable of $9.2 million and other liabilities that were individually immaterial. The goodwill was not deductible for tax purposes. We recorded $8.5 million in tax expense related to the sale within income tax expense during the first quarter of 2025, of which $7.8 million was offset by a change in our tax valuation allowance in the third quarter of 2025.