TopBuild (BLD) 10-Q3 Aug 232023 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2023	Jul. 27, 2023
Cover page.
Entity Registrant Name	TopBuild Corp
Entity Central Index Key	0001633931
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	001-36870
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	47-3096382
Entity Address, Address Line One	475 North Williamson Boulevard
Entity Address, City or Town	Daytona Beach
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32114
City Area Code	386
Local Phone Number	304-2200
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	BLD
Security Exchange Name	NYSE
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		31,757,295
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 526,327	$ 240,069
Receivables, net of an allowance for credit losses of $16,778 at June 30, 2023, and $16,281 at December 31, 2022	857,664	836,071
Inventories, net	385,049	438,644
Prepaid expenses and other current assets	25,556	34,257
Total current assets	1,794,596	1,549,041
Right of use assets	204,044	205,892
Property and equipment, net	258,746	253,484
Goodwill	1,991,949	1,966,994
Other intangible assets, net	595,706	614,967
Other assets	12,905	16,453
Total assets	4,857,946	4,606,831
Current liabilities:
Accounts payable	468,602	487,114
Current portion of long-term debt	45,142	40,068
Accrued liabilities	180,594	199,370
Short-term operating lease liabilities	61,825	60,880
Short-term finance lease liabilities	2,180	2,207
Total current liabilities	758,343	789,639
Long-term debt	1,394,794	1,417,257
Deferred tax liabilities, net	254,777	251,481
Long-term portion of insurance reserves	57,217	59,783
Long-term operating lease liabilities	148,709	149,943
Long-term finance lease liabilities	4,519	6,673
Other liabilities	1,541	2,349
Total liabilities	2,619,900	2,677,125
Commitments and contingencies
Equity:
Preferred stock, $0.01 par value: 10,000,000 shares authorized; 0 shares issued and outstanding
Common stock, $0.01 par value: 250,000,000 shares authorized; 39,473,298 shares issued and 31,757,620 outstanding at June 30, 2023, and 39,325,916 shares issued and 31,642,832 outstanding at December 31, 2022	395	393
Treasury stock, 7,715,678 shares at June 30, 2022, and 7,683,084 shares at December 31, 2022, at cost	(699,149)	(692,799)
Additional paid-in capital	895,749	887,367
Retained earnings	2,056,935	1,756,665
Accumulated other comprehensive loss	(15,884)	(21,920)
Total equity	2,238,046	1,929,706
Total liabilities and equity	$ 4,857,946	$ 4,606,831

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for credit losses	$ 16,778	$ 16,281
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares, issued	0	0
Preferred stock, shares, outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	39,473,298	39,325,916
Common stock, shares outstanding	31,757,620	31,642,832
Treasury stock, shares at cost	7,715,678	7,683,084

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 1,317,262	$ 1,274,285	$ 2,582,500	$ 2,443,203
Cost of sales	895,462	890,188	1,790,485	1,727,905
Gross profit	421,800	384,097	792,015	715,298
Selling, general, and administrative expense	184,697	176,876	355,481	344,123
Operating profit	237,103	207,221	436,534	371,175
Other income (expense), net:
Interest expense	(18,558)	(13,410)	(36,597)	(25,375)
Other, net	4,605	(279)	6,528	406
Other expense, net	(13,953)	(13,689)	(30,069)	(24,969)
Income before income taxes	223,150	193,532	406,465	346,206
Income tax expense	(58,750)	(49,835)	(106,195)	(87,796)
Net income	$ 164,400	$ 143,697	$ 300,270	$ 258,410
Net income per common share:
Basic	$ 5.20	$ 4.43	$ 9.51	$ 7.93
Diluted	$ 5.18	$ 4.41	$ 9.47	$ 7.87
Weighted average shares outstanding:
Basic	31,599,744	32,405,292	31,575,337	32,570,988
Diluted	31,731,807	32,614,449	31,722,660	32,827,549

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net Income (Loss)	$ 164,400	$ 143,697	$ 300,270	$ 258,410
Other comprehensive income (loss):
Foreign currency translation adjustment	4,283	(2,193)	6,037	1,026
Comprehensive income	$ 168,683	$ 141,504	$ 306,307	$ 259,436

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows Provided by (Used in) Operating Activities:
Net income	$ 300,270	$ 258,410
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	64,652	60,621
Share-based compensation	6,886	7,061
Loss (gain) on sale of property and equipment	621	525
Amortization of debt issuance costs	1,440	1,427
Provision for bad debt expense	4,031	6,404
Loss from inventory obsolescence	3,290	3,610
Change in certain assets and liabilities:
Receivables, net	(37,247)	(107,739)
Inventories, net	54,623	(82,621)
Prepaid expenses and other current assets	8,897	648
Accounts payable	(8,806)	47,540
Accrued liabilities	(13,872)	16,884
Other, net	1,012	4,927
Net cash provided by operating activities	385,797	217,697
Cash Flows Provided by (Used in) Investing Activities:
Purchases of property and equipment	(30,672)	(36,034)
Acquisition of businesses, net of cash acquired	(45,948)	(18,746)
Proceeds from sale of property and equipment	782	618
Net cash used in investing activities	(75,838)	(54,162)
Cash Flows Provided by (Used in) Financing Activities:
Repayment of long-term debt	(18,829)	(19,287)
Proceeds from revolving credit facility		70,000
Repayment of revolving credit facility		(70,000)
Taxes withheld and paid on employees' equity awards	(6,350)	(11,667)
Exercise of stock options	1,497	1,452
Repurchase of shares of common stock		(150,050)
Payment of contingent consideration	(300)	(35)
Net cash used in financing activities	(23,982)	(179,587)
Cash and Cash Equivalents
Impact of exchange rate changes on cash	281	142
Net increase (decrease) in cash and cash equivalents	286,258	(15,910)
Cash and cash equivalents- Beginning of period	240,069	139,779
Cash and cash equivalents- End of period	526,327	123,869
Supplemental disclosure of noncash activities:
Leased assets obtained in exchange for new operating lease liabilities	26,310	36,129
Accruals for property and equipment	$ 1,449	$ 563

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Common Stock	Treasury Stock at Cost	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Total
Balance at Dec. 31, 2021	$ 391	$ (431,030)	$ 873,031	$ 1,200,676	$ (6,634)	$ 1,636,434
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)				114,711		114,711
Share-based compensation			3,727			3,727
Issuance of restricted share awards under long-term equity incentive plan	2		(2)
Repurchase of shares		(50,000)				(50,000)
Shares withheld to pay taxes on employees' equity awards		(11,658)				(11,658)
Shares issued upon exercise of stock options			808			808
Other comprehensive income, net of tax					3,218	3,218
Balance at Mar. 31, 2022	393	(492,688)	877,564	1,315,387	(3,416)	1,697,240
Balance at Dec. 31, 2021	391	(431,030)	873,031	1,200,676	(6,634)	1,636,434
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)						258,410
Balance at Jun. 30, 2022	393	(572,747)	861,542	1,459,084	(5,609)	1,742,663
Balance at Mar. 31, 2022	393	(492,688)	877,564	1,315,387	(3,416)	1,697,240
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)				143,697		143,697
Share-based compensation			3,334			3,334
Repurchase of shares pursuant to ASR Agreement		(80,050)	(20,000)			(100,050)
Shares withheld to pay taxes on employees' equity awards		(9)				(9)
Shares issued upon exercise of stock options			644			644
Other comprehensive income, net of tax					(2,193)	(2,193)
Balance at Jun. 30, 2022	393	(572,747)	861,542	1,459,084	(5,609)	1,742,663
Balance at Dec. 31, 2022	393	(692,799)	887,367	1,756,665	(21,920)	1,929,706
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)				135,870		135,870
Share-based compensation			3,135			3,135
Issuance of restricted share awards under long-term equity incentive plan	2					2
Shares withheld to pay taxes on employees' equity awards		(6,350)				(6,350)
Shares issued upon exercise of stock options			1,028			1,028
Other comprehensive income, net of tax					1,753	1,753
Balance at Mar. 31, 2023	395	(699,149)	891,530	1,892,535	(20,167)	2,065,144
Balance at Dec. 31, 2022	393	(692,799)	887,367	1,756,665	(21,920)	1,929,706
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)						300,270
Balance at Jun. 30, 2023	395	(699,149)	895,749	2,056,935	(15,884)	2,238,046
Balance at Mar. 31, 2023	395	(699,149)	891,530	1,892,535	(20,167)	2,065,144
Increase (Decrease) in Stockholders' Equity
Net Income (Loss)				164,400		164,400
Share-based compensation			3,751			3,751
Shares issued upon exercise of stock options			468			468
Other comprehensive income, net of tax					4,283	4,283
Balance at Jun. 30, 2023	$ 395	$ (699,149)	$ 895,749	$ 2,056,935	$ (15,884)	$ 2,238,046

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Common stock, par value (in dollars per share)	$ 0.01
Issuance of restricted share awards under long-term equity incentive plan (in shares)	18,768	95,012		52,940
Repurchase of shares (in shares)				238,154
Repurchase of shares of common stock pursuant to Accelerated Share Repurchase Program (in shares)			409,312
Number of shares withheld to pay taxes on employees' equity awards (in shares)		32,594	51	53,073
Shares issued upon exercise of stock options (in shares)	4,762	28,840	5,835	12,269

Basis of Presentation

Basis of Presentation	6 Months Ended
Basis of Presentation	Jun. 30, 2023
Summary of Significant Accounting Policies
Basis of Presentation	1. BASIS OF PRESENTATION TopBuild was formed on June 30, 2015, and is listed on the NYSE under the ticker symbol “BLD.” We report our business in two segments: Installation and Specialty Distribution. Our Installation segment primarily installs insulation and other building products. Our Specialty Distribution segment primarily sells and distributes insulation and other building products. Our segments are based on our operating units, for which financial information is regularly evaluated by our chief operating decision maker. We believe the accompanying unaudited condensed consolidated financial statements contain all adjustments, of a normal recurring nature, necessary to state fairly our financial position as of June 30, 2023, our results of operations and comprehensive income for the three and six months ended June 30, 2023 and 2022, and our cash flows for the six months ended June 30, 2023 and 2022. The condensed consolidated balance sheet at December 31, 2022 was derived from our audited financial statements, but does not include all disclosures required by GAAP. These condensed consolidated financial statements and related notes should be read in conjunction with the audited Consolidated Financial Statements included in the Company’s Annual Report for the year ended December 31, 2022

Accounting Policies

Accounting Policies	6 Months Ended
Accounting Policies	Jun. 30, 2023
Accounting Policies
Accounting Policies	2. ACCOUNTING POLICIES Financial Statement Presentation. Our condensed consolidated financial statements have been developed in conformity with GAAP, which requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from these estimates. All intercompany transactions between TopBuild entities have been eliminated. Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. This standard improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract liability, as well as payment terms and their effect on subsequent revenue recognized by the acquirer. This standard became effective for us on January 1, 2023, and did not have a material impact to our financial statements upon adoption.

Revenue Recognition

Revenue Recognition	6 Months Ended
Revenue Recognition	Jun. 30, 2023
Revenue Recognition
Revenue Recognition	3. REVENUE RECOGNITION Revenue is disaggregated between our Installation and Specialty Distribution segments and further based on market and product, as we believe this best depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following tables present our revenues disaggregated by market (in thousands): Three Months Ended June 30, 2023 2022 Installation Specialty Distribution Eliminations Total Installation Specialty Distribution Eliminations Total Residential $ 668,172 $ 227,254 $ (56,667) $ 838,759 $ 634,078 $ 247,827 $ (50,007) $ 831,898 Commercial/Industrial 140,883 347,234 (9,614) 478,503 114,890 339,964 (12,467) 442,387 Net sales $ 809,055 $ 574,488 $ (66,281) $ 1,317,262 $ 748,968 $ 587,791 $ (62,474) $ 1,274,285 Six Months Ended June 30, 2023 2022 Installation Specialty Distribution Eliminations Total Installation Specialty Distribution Eliminations Total Residential $ 1,313,875 $ 451,579 $ (108,056) $ 1,657,398 $ 1,197,382 $ 484,238 $ (93,429) $ 1,588,191 Commercial/Industrial 262,270 681,283 (18,451) 925,102 228,279 647,415 (20,682) 855,012 Net sales $ 1,576,145 $ 1,132,862 $ (126,507) $ 2,582,500 $ 1,425,661 $ 1,131,653 $ (114,111) $ 2,443,203 The following tables present our revenues disaggregated by product (in thousands): Three Months Ended June 30, 2023 2022 Installation Specialty Distribution Eliminations Total Installation Specialty Distribution Eliminations Total Insulation and accessories $ 633,924 $ 513,162 $ (57,599) $ 1,089,487 $ 590,099 $ 518,507 $ (53,343) $ 1,055,263 Glass and windows 68,841 - - 68,841 57,121 - - 57,121 Gutters 29,401 44,088 (7,571) 65,918 27,240 50,879 (8,094) 70,025 All other 76,889 17,238 (1,111) 93,016 74,508 18,405 (1,037) 91,876 Net sales $ 809,055 $ 574,488 $ (66,281) $ 1,317,262 $ 748,968 $ 587,791 $ (62,474) $ 1,274,285 Six Months Ended June 30, 2023 2022 Installation Specialty Distribution Eliminations Total Installation Specialty Distribution Eliminations Total Insulation and accessories $ 1,234,691 $ 1,015,964 $ (109,572) $ 2,141,083 $ 1,126,440 $ 998,267 $ (97,153) $ 2,027,554 Glass and windows 132,283 - - 132,283 108,317 - - 108,317 Gutters 57,679 83,931 (14,736) 126,874 50,198 97,509 (15,096) 132,611 All other 151,492 32,967 (2,199) 182,260 140,706 35,877 (1,862) 174,721 Net sales $ 1,576,145 $ 1,132,862 $ (126,507) $ 2,582,500 $ 1,425,661 $ 1,131,653 $ (114,111) $ 2,443,203 The following table represents our contract assets and contract liabilities with customers, in thousands: Included in Line Item on As of Condensed Consolidated June 30, December 31, Balance Sheets 2023 2022 Contract Assets: Receivables, unbilled Receivables, net $ 87,305 $ 75,481 Contract Liabilities: Deferred revenue Accrued liabilities $ 16,332 $ 21,940 The aggregate amount remaining on uncompleted performance obligations was $419.3 million as of June 30, 2023. We expect to satisfy the performance obligations and recognize revenue on substantially all of these uncompleted contracts over the next 18 months . On certain of our long-term contracts, a percentage of the total project cost is withheld and not invoiced to the customer and collected until satisfactory completion of the customer ’ s project, typically within a year. This amount is referred to as retainage and is common practice in the construction industry.

Goodwill and Other Intangibles

Goodwill and Other Intangibles	6 Months Ended
Goodwill and Other Intangibles	Jun. 30, 2023
Goodwill and Other Intangibles
Goodwill and Other Intangibles	4. GOODWILL AND OTHER INTANGIBLES We have two reporting units which are also our operating and reporting segments: Installation and Specialty Distribution. Both reporting units contain goodwill. Assets acquired and liabilities assumed are assigned to the applicable reporting unit based on whether the acquired assets and liabilities relate to the operations of and determination of the fair value of such unit. Goodwill assigned to the reporting unit is the excess of the fair value of the acquired business over the fair value of the individual assets acquired and liabilities assumed for the reporting unit. In the fourth quarter of 2022, we performed an annual assessment on our goodwill resulting in no impairment and there were no indicators of impairment for the six months ended June 30, 2023. Changes in the carrying amount of goodwill for six months ended June 30, 2023, by segment, were as follows, in thousands: Accumulated Gross Goodwill FX Translation Gross Goodwill Impairment Net Goodwill December 31, 2022 Additions Adjustment June 30, 2023 Losses June 30, 2023 Goodwill, by segment: Installation $ 1,826,979 $ 23,568 $ - $ 1,850,547 $ (762,021) $ 1,088,526 Specialty Distribution 902,036 - 1,387 903,423 - 903,423 Total goodwill $ 2,729,015 $ 23,568 $ 1,387 $ 2,753,970 $ (762,021) $ 1,991,949 See Note 11 – Business Combinations Other intangible assets, net includes customer relationships, non-compete agreements, and trademarks / trade names. The following table sets forth our other intangible assets, in thousands: As of June 30, 2023 December 31, 2022 Gross definite-lived intangible assets $ 797,503 $ 782,316 Accumulated amortization (201,797) (167,349) Net definite-lived intangible assets $ 595,706 $ 614,967 The following table sets forth our amortization expense, in thousands: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Amortization expense $ 17,211 $ 16,809 $ 34,107 $ 33,839

Long-Term Debt

Long-Term Debt	6 Months Ended
Long-Term Debt	Jun. 30, 2023
Long-Term Debt
Long-Term Debt	5. LONG-TERM DEBT The following table reconciles the principal balances of our outstanding debt to our condensed consolidated balance sheets, in thousands: As of June 30, 2023 December 31, 2022 3.625% Senior Notes due 2029 $ 400,000 $ 400,000 4.125% Senior Notes due 2032 500,000 500,000 Term loan due 2026 551,250 566,250 Equipment notes 4,598 8,427 Unamortized debt issuance costs (15,912) (17,352) Total debt, net of unamortized debt issuance costs 1,439,936 1,457,325 Less: current portion of long-term debt 45,142 40,068 Total long-term debt $ 1,394,794 $ 1,417,257 The following table sets forth our remaining principal payments for our outstanding debt balances as of June 30, 2023, in thousands: 2023 2024 2025 2026 2027 Thereafter Total 3.625% Senior Notes $ - $ - $ - $ - $ - $ 400,000 $ 400,000 4.125% Senior Notes - - - - - 500,000 500,000 Term loan 18,750 45,000 48,750 438,750 - - 551,250 Equipment notes 2,489 2,109 - - - - 4,598 Total $ 21,239 $ 47,109 $ 48,750 $ 438,750 $ - $ 900,000 $ 1,455,848 Credit Agreement The following table outlines the key terms of the Credit Agreement (dollars in thousands): Senior secured term loan facility $ 300,000 Additional delayed draw term loan $ 300,000 Additional term loan and/or revolver capacity available under incremental facility (a) $ 300,000 Revolving facility $ 500,000 Sublimit for issuance of letters of credit under revolving facility (b) $ 100,000 Sublimit for swingline loans under revolving facility (b) $ 35,000 Interest rate as of June 30, 2023 6.20 % Scheduled maturity date 10/7/2026 (a) Additional borrowing capacity is available under the incremental facility, subject to certain terms and conditions (including existing or new lenders providing commitments in respect of such additional borrowing capacity). This incremental facility has not been accessed as of June 30, 2023. (b) Use of the sublimits for the issuance of letters of credit and swingline loans reduces the availability under the Revolving Facility. Interest expense on borrowings under the Credit Agreement is based on an applicable margin rate plus, at our option, either: ● A base rate determined by reference to the highest of either (i) the federal funds rate plus 0.50 percent, (ii) BofA’s “prime rate,” and (iii) the SOFR rate for U.S. dollar deposits with a term of one month , plus 1.00 percent; or ● A SOFR rate determined by reference to the costs of funds for deposits in U.S. dollars for the interest period relevant to such borrowings, subject to a floor of 0% . The applicable margin rate is determined based on our Secured Leverage Ratio. In the case of base rate borrowings, the applicable margin rate ranges from 0.00 percent to 1.50 percent and in the case of SOFR rate borrowings, the applicable margin ranges from 1.00 percent to 2.50 percent. Borrowings under the Credit Agreement are prepayable at the Company’s option without premium or penalty. The Company is required to make prepayments with the net cash proceeds of certain asset sales and certain extraordinary receipts. Revolving Facility The Company has outstanding standby letters of credit that secure our financial obligations related to our workers’ compensation, general insurance, and auto liability programs. These standby letters of credit, as well as any outstanding amount borrowed under our Revolving Facility, reduce the availability under the Revolving Facility. The following table summarizes our availability under the Revolving Facility, in thousands: As of June 30, 2023 December 31, 2022 Revolving facility $ 500,000 $ 500,000 Less: standby letters of credit (67,539) (67,689) Availability under revolving facility $ 432,461 $ 432,311 We are required to pay commitment fees to the Lenders in respect of any unutilized commitments. The commitment fees range from 0.15 percent to 0.275 percent per annum, depending on our Secured Leverage Ratio. We must also pay customary fees on outstanding letters of credit. 3.625% Senior Notes The 3.625% Senior Notes are $400.0 million senior unsecured obligations and bear interest at 3.625% per year, payable semiannually in arrears on March 15 and September 15, beginning on September 15, 2021. The 3.625% Senior Notes mature on March 15, 2029, unless redeemed early or repurchased. If we undergo a change in control, we must make an offer to repurchase all of the 3.625% Senior Notes then outstanding at a repurchase price equal to 101% of their aggregate principal amount, plus accrued and unpaid interest (if any) to, but not including, the repurchase date. The Company may redeem the 3.625% Senior Notes, in whole or in part, at any time on or after March 15, 2024 at the redemption prices specified in the notes. The Company may also redeem all or part of the 3.625% Senior Notes at any time prior to March 15, 2024 at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus the Applicable Premium (as defined in the notes), as of, and accrued and unpaid interest to, the redemption date. Additionally, the Company may redeem up to 40% of the aggregate principal amount of the 3.625% Senior Notes prior to March 15, 2024 with the net cash proceeds of certain sales of its capital stock at 103.625% of the principal amount of the notes, plus accrued and unpaid interest, if any, to the date of redemption only if, after the redemption, at least 60% of the aggregate principal amount of the 3.625% Senior Notes originally issued remains outstanding. 4.125% Senior Notes The 4.125% Senior Notes are $500.0 million senior unsecured obligations and bear interest at 4.125% per year, payable semiannually in arrears on February 15 and August 15, beginning on August 15, 2022. The 4.125% Senior Notes mature on February 15, 2032, unless redeemed early or repurchased. If we undergo a change in control, we must make an offer to repurchase all of the 4.125% Senior Notes then outstanding at a repurchase price equal to 101% of their aggregate principal amount, plus accrued and unpaid interest (if any) to, but not including, the repurchase date. The Company may redeem the 4.125% Senior Notes, in whole or in part, at any time on or after October 15, 2026 at the redemption prices specified in the notes plus accrued and unpaid interest if redeemed during the 12 month period commencing on October 15 of the years set for: 2026 – 102.063%, 2027 – 101.375%, 2028 – 100.688%, 2029 and thereafter – 100.000%. The Company may also redeem a make-whole redemption of the 4.125% Senior Notes at any time prior to October 15, 2026 at the treasury rate plus 50 basis points. Additionally, the Company may redeem up to 40% of the aggregate principal amount of the 4.125% Senior Notes prior to October 15, 2024 with the net cash proceeds of certain sales of its capital stock at 104.125% of the principal amount of the notes, plus accrued and unpaid interest, if any, to the date of redemption only if, after the redemption, at least 60% of the aggregate principal amount of the notes originally issued remains outstanding. Equipment Notes We did not issue equipment notes during the six months ended June 30, 2023. The company has issued $41.6 million of equipment notes for the purpose of financing the purchase of vehicles and equipment. The Company’s equipment notes each have a five year term maturing in 2023 and 2024 and bear interest at fixed rates between 2.8% and 4.4% . Covenant Compliance The indentures governing our 3.625% Senior Notes and our 4.125% Senior Notes (together, our “Senior Notes”) contain restrictive covenants that, among other things, generally limit the ability of the Company and certain of its subsidiaries (subject to certain exceptions) to (i) create liens, (ii) pay dividends, acquire shares of capital stock and make payments on subordinated debt, (iii) place limitations on distributions from certain subsidiaries, (iv) issue or sell the capital stock of certain subsidiaries, (v) sell assets, (vi) enter into transactions with affiliates and (vii) effect mergers. The indentures provide for customary events of default which include (subject in certain cases to customary grace and cure periods), among others: nonpayment of principal or interest; breach of covenants or other agreements in the indenture; defaults in failure to pay certain other indebtedness; and certain events of bankruptcy or insolvency. Generally, if an event of default occurs and is continuing under the indenture, the trustee or the holders of at least 30% in aggregate principal amount of each of our Senior Notes then outstanding may declare the principal of, premium, if any, and accrued interest on the Senior Notes subject to such declaration immediately due and payable. The Senior Notes and related guarantees have not been registered under the Securities Act of 1933, and we are not required to register either the Senior Notes or the guarantees in the future. The Credit Agreement contains certain covenants that limit, among other things, the ability of the Company to incur additional indebtedness or liens; to make certain investments or loans; to make certain restricted payments; to enter into consolidations, mergers, sales of material assets, and other fundamental changes; to transact with affiliates; to enter into agreements restricting the ability of subsidiaries to incur liens or pay dividends; or to make certain accounting changes. The Credit Agreement contains customary affirmative covenants and events of default. The Credit Agreement requires that we maintain a Net Leverage Ratio and minimum Interest Coverage Ratio throughout the term of the agreement. The following table outlines the key financial covenants effective for the period covered by this Quarterly Report: As of June 30, 2023 Maximum Net Leverage Ratio 3.50:1.00 Minimum Interest Coverage Ratio 3.00:1.00 Compliance as of period end In Compliance

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2023
Fair Value Measurements
Fair Value Measurements	6 FAIR VALUE MEASUREMENTS Fair Value on Recurring Basis The carrying values of cash and cash equivalents, receivables, net, and accounts payable are considered to be representative of their respective fair values due to the short-term nature of these instruments. Fair Value on Non-Recurring Basis Fair value measurements were applied to our long-term debt portfolio. As of June 30, 2023 Fair Value Gross Carrying Value 3.625% Senior Notes $ 350,400 $ 400,000 4.125% Senior Notes $ 430,100 $ 500,000

Segment Information

Segment Information	6 Months Ended
Segment Information	Jun. 30, 2023
Segment Information
Segment Information	7. SEGMENT INFORMATION The following tables set forth our net sales and operating results by segment, in thousands: Three Months Ended June 30, 2023 2022 2023 2022 Net Sales Operating Profit (b) Operations by segment (a): Installation $ 809,055 $ 748,968 $ 172,278 $ 139,919 Specialty Distribution 574,488 587,791 85,980 86,749 Intercompany eliminations (66,281) (62,474) (11,198) (10,435) Total $ 1,317,262 $ 1,274,285 247,060 216,233 General corporate expense, net (c) (9,957) (9,012) Operating profit, as reported 237,103 207,221 Other expense, net (13,953) (13,689) Income before income taxes $ 223,150 $ 193,532 Six Months Ended June 30, 2023 2022 2023 2022 Net Sales Operating Profit (b) Operations by segment (a): Installation $ 1,576,145 $ 1,425,661 $ 319,176 $ 252,598 Specialty Distribution 1,132,862 1,131,653 159,313 157,170 Intercompany eliminations (126,507) (114,111) (21,169) (19,144) Total $ 2,582,500 $ 2,443,203 457,320 390,624 General corporate expense, net (c) (20,786) (19,449) Operating profit, as reported 436,534 371,175 Other expense, net (30,069) (24,969) Income before income taxes $ 406,465 $ 346,206 (a) All of our operations are located primarily in the U.S and to a lesser extent Canada. (b) Segment operating profit includes an allocation of general corporate expenses attributable to the operating segments which is based on direct benefit or usage (such as salaries of corporate employees who directly support the segment). (c) General corporate expense, net includes expenses not specifically attributable to our segments for functions such as corporate human resources, finance, and legal, including salaries, benefits, and other related costs .

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2023
Income Taxes
Income Taxes	8. INCOME TAXES Our effective tax rates were 26.3 percent and 26.1 percent for the three and six months ended June 30, 2023, and 2022, respectively. The effective rates for the three and six months ended June 30, 2022 were 25.8 percent and 25.4 percent, respectively. The higher 2023 tax rate for the three months ended June 30, 2023, compared to the three months ended June 30, 2022, was primarily related to state tax adjustments and miscellaneous items. A tax expense of $0.2 million related to share-based compensation was recognized in our condensed consolidated statements of operations as a discrete item in income tax expense for the six months ended June 30, 2023. A tax benefit of $1.6 million related to share-based compensation was recognized in our condensed consolidated statements of operations as a discrete item in income tax expense for the six months ended June 30, 2022.

Net Income Per Share

Net Income Per Share	6 Months Ended
Net Income Per Share	Jun. 30, 2023
Net Income Per Share
Net Income Per Share	9. NET INCOME PER SHAR E Basic net income per share is calculated by dividing net income by the number of weighted average shares outstanding during the period, without consideration for common stock equivalents. Diluted net income per share is calculated by adjusting the number of weighted average shares outstanding for the dilutive effect of common stock equivalents outstanding for the period, determined using the treasury stock method. Basic and diluted net income per share were computed as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (in thousands) $ 164,400 $ 143,697 $ 300,270 $ 258,410 Weighted average number of common shares outstanding - basic 31,599,744 32,405,292 31,575,337 32,570,988 Dilutive effect of common stock equivalents: RSAs with service-based conditions 25,052 12,123 23,848 13,625 RSAs with market-based conditions 20,039 52,871 22,450 76,515 RSAs with performance-based conditions 1,974 39,677 15,503 51,851 Stock options 84,998 104,486 85,522 114,570 Weighted average number of common shares outstanding - diluted 31,731,807 32,614,449 31,722,660 32,827,549 Basic net income per common share $ 5.20 $ 4.43 $ 9.51 $ 7.93 Diluted net income per common share $ 5.18 $ 4.41 $ 9.47 $ 7.87 The following table summarizes shares excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Anti-dilutive common stock equivalents: RSAs with service-based conditions - 18,880 5,582 14,562 RSAs with market-based conditions - 82 4,467 232 RSAs with performance-based conditions - - - 3,954 Stock options 14,801 22,875 18,541 19,731 Total anti-dilutive common stock equivalents 14,801 41,837 28,590 38,479

Share-Based Compensation

Share-Based Compensation	6 Months Ended
Share-Based Compensation	Jun. 30, 2023
Share-Based Compensation.
Share-Based Compensation	10. SHARE-BASED COMPENSATION Effective July 1, 2015, our eligible employees commenced participation in the 2015 LTIP. The 2015 LTIP authorizes the Board to grant stock options, stock appreciation rights, restricted shares, restricted share units, performance awards, and dividend equivalents. All grants are made by issuing new shares and no more than 4.0 million shares of common stock may be issued under the 2015 LTIP. As of June 30, 2023, we had 1.8 million shares remaining available for issuance under the 2015 LTIP. Share-based compensation expense is included in selling, general, and administrative expense. The income tax effect associated with share-based compensation awards is included in income tax expense. The following table presents share-based compensation amounts recognized in our condensed consolidated statements of operations, in thousands: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Share-based compensation expense $ 3,751 $ 3,334 $ 6,886 $ 7,061 Income tax (expense)/benefit $ (180) $ (32) $ (225) $ 1,573 The following table presents a summary of our share-based compensation activity for six months ended June 30, 2023, in thousands, except per share amounts: RSAs Stock Options Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Balance December 31, 2022 173.2 $ 195.06 182.2 $ 32.25 $ 86.79 $ 13,992.3 Granted 101.3 $ 200.90 — $ — $ — — Converted/Exercised (99.4) $ 147.26 (33.6) $ 16.81 $ 47.42 $ 5,041.0 Forfeited/Expired (7.2) $ 231.79 — $ — $ — — Balance June 30, 2023 167.9 $ 226.51 148.6 $ 35.87 $ 95.69 $ 25,306.8 Exercisable June 30, 2023 (a) 141.2 $ 33.04 $ 89.44 $ 24,924.8 (a) The weighted average remaining contractual term for vested stock options is approximately 5.6 years. We have unrecognized share-based compensation expense related to unvested awards as shown in the following table, dollars in thousands: As of June 30, 2023 Unrecognized Compensation Expense on Unvested Awards Weighted Average Remaining Compensation Expense Period RSAs $ 22,105 1.1 Stock options 287 0.4 Total unrecognized compensation expense related to unvested awards $ 22,392 Our RSAs with performance-based conditions are evaluated on a quarterly basis with adjustments to compensation expense based on the likelihood of the performance target being achieved or exceeded. The following table shows the range of payouts and the related expense for our outstanding RSAs with performance-based conditions, in thousands: Payout Ranges and Related Expense RSAs with Performance-Based Conditions Grant Date Fair Value 0% 25% 100% 200% February 16, 2021 $ 2,177 $ - $ 544 $ 2,177 $ 4,354 February 15, 2022 $ 3,062 $ - $ 766 $ 3,062 $ 6,124 February 21, 2023 $ 4,156 $ - $ 1,039 $ 4,156 $ 8,312 During the first quarter of 2023, RSAs with performance-based conditions that were granted on February 17, 2020 vested based on cumulative three-year achievement of 200%. Total compensation expense recognized over the three-year performance period, net of forfeitures, was $5.0 million. The fair value of our RSAs with a market-based condition granted under the 2015 LTIP was determined using a Monte Carlo simulation. The following are key inputs in the Monte Carlo analysis for awards granted in 2023, 2022, and 2021: 2023 2022 2021 Measurement period (years) 2.86 2.87 2.87 Risk free interest rate 4.42 % 1.76 % 0.22 % Dividend yield 0.00 % 0.00 % 0.00 % Estimated fair value of market-based RSAs at grant date $ 270.64 $ 298.20 $ 298.66

Business Combinations

Business Combinations	6 Months Ended
Business Combinations	Jun. 30, 2023
Business Combinations
Business Combinations	11. BUSINESS COMBINATIONS Acquiring businesses is a key part of our ongoing strategy to grow our company and expand our market share. Each acquisition has been accounted for as a business combination under ASC 805, “Business Combinations.” Acquisition related costs were $1.1 million and $2.8 million in the three and six months ended June 30, 2023, respectively, and $0.9 million and $1.3 million for the three and six months ended June 30, 2022, respectively. Acquisition related costs are included in selling, general, and administrative expense in our condensed consolidated statements of operations. On January 26, 2023, we acquired the assets of the residential insulation business of SRI. This installation acquisition enhanced our presence in Georgia, Michigan, Ohio, Florida, Alabama and South Carolina. The purchase price of $45.8 million was funded by cash on hand and the fair values of the assets acquired and liabilities assumed are as follows as of June 30, 2023, in thousands: Purchase price fair values: Accounts receivable $ 5,751 Inventories 4,377 Prepaid and other assets 203 Property and equipment 4,623 ROU asset (operating) 4,695 Intangible assets 13,740 Goodwill 23,687 Accounts payable (6,368) Lease liabilities (operating) (4,771) All other liabilities (89) Net assets acquired $ 45,848 Estimates of acquired intangible assets related to the acquisition of SRI are as follows as of June 30, 2023, dollars in thousands: Estimated Fair Value Weighted Average Estimated Useful Life (Years) Customer relationships $ 12,020 12 Trademarks and trade names 1,520 10 Non-compete agreements 200 5 Total intangible assets acquired $ 13,740 12 As third-party or internal valuations are finalized, certain tax aspects of the foregoing transactions are completed, and customer post-closing reviews are concluded, adjustments may be made to the fair value of assets acquired, and in some cases total purchase price, through the end of each measurement period, generally one year following the applicable acquisition date. The table below provides a summary as of June 30, 2023 for the businesses acquired during the six months ended June 30, 2022, in thousands: 2022 Acquisitions Date Cash Paid Contingent Consideration Goodwill Acquired Billings 2/3/2022 $ 7,005 $ — $ 3,313 Assured 4/7/2022 4,719 600 3,406 All others Various 1,500 — 780 Total $ 13,224 $ 600 $ 7,499 Goodwill to be recognized in connection with acquisitions is attributable to the synergies expected to be realized and improvements in the businesses after the acquisitions. Primarily all of the $23.7 million and $7.5 million of goodwill recorded from acquisitions completed in the six months ended June 30, 2023 and 2022, respectively, is expected to be deductible for income tax purposes.

Accrued Liabilities

Accrued Liabilities	6 Months Ended
Accrued Liabilities	Jun. 30, 2023
Accrued Liabilities.
Accrued Liabilities	12. ACCRUED LIABILITIES The following table sets forth the components of accrued liabilities, in thousands: As of June 30, 2023 December 31, 2022 Accrued liabilities: Salaries, wages, and bonus/commissions $ 68,353 $ 75,237 Insurance liabilities 28,663 28,870 Customer rebates 12,492 21,561 Deferred revenue 16,332 21,940 Sales and property taxes 15,765 15,757 Interest payable on long-term debt 11,978 12,146 Other 27,011 23,859 Total accrued liabilities $ 180,594 $ 199,370 See Note 3 – Revenue Recognition

Other Commitments and Contingen

Other Commitments and Contingencies	6 Months Ended
Other Commitments and Contingencies	Jun. 30, 2023
Other Commitments and Contingencies
Other Commitments and Contingencies	13. OTHER COMMITMENTS AND CONTINGENCIES Litigation Other Matters We also maintain indemnification agreements with our directors and officers that may require us to indemnify them against liabilities that arise by reason of their status or service as directors or officers, except as prohibited by applicable law. We occasionally use performance bonds to ensure completion of our work on certain larger customer contracts that can span multiple accounting periods. Performance bonds generally do not have stated expiration dates; rather, we are released from the bonds as the contractual performance is completed. We also have bonds outstanding for license and insurance. The following table summarizes our outstanding performance, licensing, insurance, and other bonds, in thousands: As of June 30, 2023 December 31, 2022 Outstanding bonds: Performance bonds $ 140,363 $ 152,434 Licensing, insurance, and other bonds 25,559 25,439 Total bonds $ 165,922 $ 177,873

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2023
Subsequent Events
Subsequent Events	14. SUBSEQUENT EVENTS On July 10, 2023, we acquired the assets of the residential insulation installer business Rocky Mountain. This installation acquisition enhanced our presence in the Colorado market. The purchase price of approximately $7.2 million was funded by cash on hand. On July 17, 2023, we acquired the assets of the residential insulation business Best Insulation. This installation acquisition enhanced our presence in Texas, Arizona, Tennessee, and Florida markets. The purchase price of approximately $95.0 million was funded by cash on hand. Both acquisitions were accounted for as a business combination under ASC 805, “Business Combinations.” During the measurement period, we expect to receive additional detailed information to complete the purchase price allocation. On July 26, 2023, we entered into an agreement to acquire SPI, a leading installer and specialty distributor of insulation and building material products to the construction industry in the United States and Canada. SPI has 85 branches across the United States and 4 branches in Canada. We expect to fund this $960.0 million transaction with a new $550.0 million delayed draw term loan and cash on hand. The transaction is subject to customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. On July 26, 2023, we entered into Amendment No. 4 to our Credit Agreement, which among other things, (i) increases the permitted borrowings from $300.0 million to $850.0 million, and (ii) provides for a new $550.0 million delayed draw term loan, the proceeds of which will be used, in part, to finance the acquisition of SPI.

Accounting Policies (Policies)

Accounting Policies (Policies)	6 Months Ended
Accounting Policies (Policies)	Jun. 30, 2023
Accounting Policies
Financial Statement Presentation	Financial Statement Presentation. Our condensed consolidated financial statements have been developed in conformity with GAAP, which requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting periods. Actual results could differ materially from these estimates. All intercompany transactions between TopBuild entities have been eliminated.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In October 2021, the FASB issued ASU 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers”. This standard improves the accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to recognition of an acquired contract liability, as well as payment terms and their effect on subsequent revenue recognized by the acquirer. This standard became effective for us on January 1, 2023, and did not have a material impact to our financial statements upon adoption.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	6 Months Ended
Revenue Recognition (Tables)	Jun. 30, 2023
Revenue Recognition
Schedule of revenues disaggregated by market and product	Three Months Ended June 30, 2023 2022 Installation Specialty Distribution Eliminations Total Installation Specialty Distribution Eliminations Total Residential $ 668,172 $ 227,254 $ (56,667) $ 838,759 $ 634,078 $ 247,827 $ (50,007) $ 831,898 Commercial/Industrial 140,883 347,234 (9,614) 478,503 114,890 339,964 (12,467) 442,387 Net sales $ 809,055 $ 574,488 $ (66,281) $ 1,317,262 $ 748,968 $ 587,791 $ (62,474) $ 1,274,285 Six Months Ended June 30, 2023 2022 Installation Specialty Distribution Eliminations Total Installation Specialty Distribution Eliminations Total Residential $ 1,313,875 $ 451,579 $ (108,056) $ 1,657,398 $ 1,197,382 $ 484,238 $ (93,429) $ 1,588,191 Commercial/Industrial 262,270 681,283 (18,451) 925,102 228,279 647,415 (20,682) 855,012 Net sales $ 1,576,145 $ 1,132,862 $ (126,507) $ 2,582,500 $ 1,425,661 $ 1,131,653 $ (114,111) $ 2,443,203 The following tables present our revenues disaggregated by product (in thousands): Three Months Ended June 30, 2023 2022 Installation Specialty Distribution Eliminations Total Installation Specialty Distribution Eliminations Total Insulation and accessories $ 633,924 $ 513,162 $ (57,599) $ 1,089,487 $ 590,099 $ 518,507 $ (53,343) $ 1,055,263 Glass and windows 68,841 - - 68,841 57,121 - - 57,121 Gutters 29,401 44,088 (7,571) 65,918 27,240 50,879 (8,094) 70,025 All other 76,889 17,238 (1,111) 93,016 74,508 18,405 (1,037) 91,876 Net sales $ 809,055 $ 574,488 $ (66,281) $ 1,317,262 $ 748,968 $ 587,791 $ (62,474) $ 1,274,285 Six Months Ended June 30, 2023 2022 Installation Specialty Distribution Eliminations Total Installation Specialty Distribution Eliminations Total Insulation and accessories $ 1,234,691 $ 1,015,964 $ (109,572) $ 2,141,083 $ 1,126,440 $ 998,267 $ (97,153) $ 2,027,554 Glass and windows 132,283 - - 132,283 108,317 - - 108,317 Gutters 57,679 83,931 (14,736) 126,874 50,198 97,509 (15,096) 132,611 All other 151,492 32,967 (2,199) 182,260 140,706 35,877 (1,862) 174,721 Net sales $ 1,576,145 $ 1,132,862 $ (126,507) $ 2,582,500 $ 1,425,661 $ 1,131,653 $ (114,111) $ 2,443,203
Schedule of contract assets and contract liabilities with customers	The following table represents our contract assets and contract liabilities with customers, in thousands: Included in Line Item on As of Condensed Consolidated June 30, December 31, Balance Sheets 2023 2022 Contract Assets: Receivables, unbilled Receivables, net $ 87,305 $ 75,481 Contract Liabilities: Deferred revenue Accrued liabilities $ 16,332 $ 21,940

Goodwill and Other Intangibles

Goodwill and Other Intangibles (Tables)	6 Months Ended
Goodwill and Other Intangibles (Tables)	Jun. 30, 2023
Goodwill and Other Intangibles
Changes in the carrying amount of goodwill by segment	Changes in the carrying amount of goodwill for six months ended June 30, 2023, by segment, were as follows, in thousands: Accumulated Gross Goodwill FX Translation Gross Goodwill Impairment Net Goodwill December 31, 2022 Additions Adjustment June 30, 2023 Losses June 30, 2023 Goodwill, by segment: Installation $ 1,826,979 $ 23,568 $ - $ 1,850,547 $ (762,021) $ 1,088,526 Specialty Distribution 902,036 - 1,387 903,423 - 903,423 Total goodwill $ 2,729,015 $ 23,568 $ 1,387 $ 2,753,970 $ (762,021) $ 1,991,949
Schedule of other intangible assets	Other intangible assets, net includes customer relationships, non-compete agreements, and trademarks / trade names. The following table sets forth our other intangible assets, in thousands: As of June 30, 2023 December 31, 2022 Gross definite-lived intangible assets $ 797,503 $ 782,316 Accumulated amortization (201,797) (167,349) Net definite-lived intangible assets $ 595,706 $ 614,967
Schedule of amortization expense	As of June 30, 2023 December 31, 2022 Gross definite-lived intangible assets $ 797,503 $ 782,316 Accumulated amortization (201,797) (167,349) Net definite-lived intangible assets $ 595,706 $ 614,967

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
Long-Term Debt (Tables)	Jun. 30, 2023
Long-Term Debt
Reconciliation of principal balance of outstanding debt	The following table reconciles the principal balances of our outstanding debt to our condensed consolidated balance sheets, in thousands: As of June 30, 2023 December 31, 2022 3.625% Senior Notes due 2029 $ 400,000 $ 400,000 4.125% Senior Notes due 2032 500,000 500,000 Term loan due 2026 551,250 566,250 Equipment notes 4,598 8,427 Unamortized debt issuance costs (15,912) (17,352) Total debt, net of unamortized debt issuance costs 1,439,936 1,457,325 Less: current portion of long-term debt 45,142 40,068 Total long-term debt $ 1,394,794 $ 1,417,257
Schedule of remaining principal payments of debt	As of June 30, 2023 December 31, 2022 3.625% Senior Notes due 2029 $ 400,000 $ 400,000 4.125% Senior Notes due 2032 500,000 500,000 Term loan due 2026 551,250 566,250 Equipment notes 4,598 8,427 Unamortized debt issuance costs (15,912) (17,352) Total debt, net of unamortized debt issuance costs 1,439,936 1,457,325 Less: current portion of long-term debt 45,142 40,068 Total long-term debt $ 1,394,794 $ 1,417,257
Summary of key terms of the Credit Agreement	The following table outlines the key terms of the Credit Agreement (dollars in thousands): Senior secured term loan facility $ 300,000 Additional delayed draw term loan $ 300,000 Additional term loan and/or revolver capacity available under incremental facility (a) $ 300,000 Revolving facility $ 500,000 Sublimit for issuance of letters of credit under revolving facility (b) $ 100,000 Sublimit for swingline loans under revolving facility (b) $ 35,000 Interest rate as of June 30, 2023 6.20 % Scheduled maturity date 10/7/2026 (a) Additional borrowing capacity is available under the incremental facility, subject to certain terms and conditions (including existing or new lenders providing commitments in respect of such additional borrowing capacity). This incremental facility has not been accessed as of June 30, 2023. (b) Use of the sublimits for the issuance of letters of credit and swingline loans reduces the availability under the Revolving Facility.
Schedule of availability under the Revolving Facility	The following table summarizes our availability under the Revolving Facility, in thousands: As of June 30, 2023 December 31, 2022 Revolving facility $ 500,000 $ 500,000 Less: standby letters of credit (67,539) (67,689) Availability under revolving facility $ 432,461 $ 432,311
Schedule of the key financial covenants	As of June 30, 2023 Maximum Net Leverage Ratio 3.50:1.00 Minimum Interest Coverage Ratio 3.00:1.00 Compliance as of period end In Compliance

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2023
Fair Value Measurements
Schedule of fair value of liabilities	As of June 30, 2023 Fair Value Gross Carrying Value 3.625% Senior Notes $ 350,400 $ 400,000 4.125% Senior Notes $ 430,100 $ 500,000

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
Segment Information (Tables)	Jun. 30, 2023
Segment Information
Schedule of net sales and operating results by segment	The following tables set forth our net sales and operating results by segment, in thousands: Three Months Ended June 30, 2023 2022 2023 2022 Net Sales Operating Profit (b) Operations by segment (a): Installation $ 809,055 $ 748,968 $ 172,278 $ 139,919 Specialty Distribution 574,488 587,791 85,980 86,749 Intercompany eliminations (66,281) (62,474) (11,198) (10,435) Total $ 1,317,262 $ 1,274,285 247,060 216,233 General corporate expense, net (c) (9,957) (9,012) Operating profit, as reported 237,103 207,221 Other expense, net (13,953) (13,689) Income before income taxes $ 223,150 $ 193,532 Six Months Ended June 30, 2023 2022 2023 2022 Net Sales Operating Profit (b) Operations by segment (a): Installation $ 1,576,145 $ 1,425,661 $ 319,176 $ 252,598 Specialty Distribution 1,132,862 1,131,653 159,313 157,170 Intercompany eliminations (126,507) (114,111) (21,169) (19,144) Total $ 2,582,500 $ 2,443,203 457,320 390,624 General corporate expense, net (c) (20,786) (19,449) Operating profit, as reported 436,534 371,175 Other expense, net (30,069) (24,969) Income before income taxes $ 406,465 $ 346,206 (a) All of our operations are located primarily in the U.S and to a lesser extent Canada. (b) Segment operating profit includes an allocation of general corporate expenses attributable to the operating segments which is based on direct benefit or usage (such as salaries of corporate employees who directly support the segment). (c) General corporate expense, net includes expenses not specifically attributable to our segments for functions such as corporate human resources, finance, and legal, including salaries, benefits, and other related costs .

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
Net Income Per Share (Tables)	Jun. 30, 2023
Net Income Per Share
Schedule of basic and diluted income per share	Basic and diluted net income per share were computed as follows: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income (in thousands) $ 164,400 $ 143,697 $ 300,270 $ 258,410 Weighted average number of common shares outstanding - basic 31,599,744 32,405,292 31,575,337 32,570,988 Dilutive effect of common stock equivalents: RSAs with service-based conditions 25,052 12,123 23,848 13,625 RSAs with market-based conditions 20,039 52,871 22,450 76,515 RSAs with performance-based conditions 1,974 39,677 15,503 51,851 Stock options 84,998 104,486 85,522 114,570 Weighted average number of common shares outstanding - diluted 31,731,807 32,614,449 31,722,660 32,827,549 Basic net income per common share $ 5.20 $ 4.43 $ 9.51 $ 7.93 Diluted net income per common share $ 5.18 $ 4.41 $ 9.47 $ 7.87
Summary of shares excluded from the calculation of diluted income per share because their effect would have been anti-dilutive	The following table summarizes shares excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Anti-dilutive common stock equivalents: RSAs with service-based conditions - 18,880 5,582 14,562 RSAs with market-based conditions - 82 4,467 232 RSAs with performance-based conditions - - - 3,954 Stock options 14,801 22,875 18,541 19,731 Total anti-dilutive common stock equivalents 14,801 41,837 28,590 38,479

Share-Based Compensation (Table

Share-Based Compensation (Tables)	6 Months Ended
Share-Based Compensation (Tables)	Jun. 30, 2023
Share-Based Compensation
Schedule of share-based compensation expense and related income tax benefit	The following table presents share-based compensation amounts recognized in our condensed consolidated statements of operations, in thousands: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Share-based compensation expense $ 3,751 $ 3,334 $ 6,886 $ 7,061 Income tax (expense)/benefit $ (180) $ (32) $ (225) $ 1,573
Schedule of share-based compensation activity	The following table presents a summary of our share-based compensation activity for six months ended June 30, 2023, in thousands, except per share amounts: RSAs Stock Options Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Weighted Average Exercise Price Per Share Aggregate Intrinsic Value Balance December 31, 2022 173.2 $ 195.06 182.2 $ 32.25 $ 86.79 $ 13,992.3 Granted 101.3 $ 200.90 — $ — $ — — Converted/Exercised (99.4) $ 147.26 (33.6) $ 16.81 $ 47.42 $ 5,041.0 Forfeited/Expired (7.2) $ 231.79 — $ — $ — — Balance June 30, 2023 167.9 $ 226.51 148.6 $ 35.87 $ 95.69 $ 25,306.8 Exercisable June 30, 2023 (a) 141.2 $ 33.04 $ 89.44 $ 24,924.8 (a) The weighted average remaining contractual term for vested stock options is approximately 5.6 years.
Schedule of unrecognized share-based compensation expense relating to unvested awards	We have unrecognized share-based compensation expense related to unvested awards as shown in the following table, dollars in thousands: As of June 30, 2023 Unrecognized Compensation Expense on Unvested Awards Weighted Average Remaining Compensation Expense Period RSAs $ 22,105 1.1 Stock options 287 0.4 Total unrecognized compensation expense related to unvested awards $ 22,392
Schedule of key inputs used to estimate the fair value of awards	2023 2022 2021 Measurement period (years) 2.86 2.87 2.87 Risk free interest rate 4.42 % 1.76 % 0.22 % Dividend yield 0.00 % 0.00 % 0.00 % Estimated fair value of market-based RSAs at grant date $ 270.64 $ 298.20 $ 298.66
Performance-based conditions \| Restricted Stock Awards
Share-Based Compensation
Schedule of the range of payouts and the related expense for RSAs with performance-based conditions	Payout Ranges and Related Expense RSAs with Performance-Based Conditions Grant Date Fair Value 0% 25% 100% 200% February 16, 2021 $ 2,177 $ - $ 544 $ 2,177 $ 4,354 February 15, 2022 $ 3,062 $ - $ 766 $ 3,062 $ 6,124 February 21, 2023 $ 4,156 $ - $ 1,039 $ 4,156 $ 8,312

Business Combinations (Tables)

Business Combinations (Tables)	6 Months Ended
Business Combinations (Tables)	Jun. 30, 2023
SRI Holdings
Business Combinations
Schedule of fair value of assets and liabilities assumed	Purchase price fair values: Accounts receivable $ 5,751 Inventories 4,377 Prepaid and other assets 203 Property and equipment 4,623 ROU asset (operating) 4,695 Intangible assets 13,740 Goodwill 23,687 Accounts payable (6,368) Lease liabilities (operating) (4,771) All other liabilities (89) Net assets acquired $ 45,848
Schedule of estimates of acquired intangible assets related to the acquisition	Estimated Fair Value Weighted Average Estimated Useful Life (Years) Customer relationships $ 12,020 12 Trademarks and trade names 1,520 10 Non-compete agreements 200 5 Total intangible assets acquired $ 13,740 12
2022 Acquisitions
Business Combinations
Summary of businesses acquired	2022 Acquisitions Date Cash Paid Contingent Consideration Goodwill Acquired Billings 2/3/2022 $ 7,005 $ — $ 3,313 Assured 4/7/2022 4,719 600 3,406 All others Various 1,500 — 780 Total $ 13,224 $ 600 $ 7,499

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	6 Months Ended
Accrued Liabilities (Tables)	Jun. 30, 2023
Accrued Liabilities.
Schedule of components of accrued liabilities	The following table sets forth the components of accrued liabilities, in thousands: As of June 30, 2023 December 31, 2022 Accrued liabilities: Salaries, wages, and bonus/commissions $ 68,353 $ 75,237 Insurance liabilities 28,663 28,870 Customer rebates 12,492 21,561 Deferred revenue 16,332 21,940 Sales and property taxes 15,765 15,757 Interest payable on long-term debt 11,978 12,146 Other 27,011 23,859 Total accrued liabilities $ 180,594 $ 199,370

Other Commitments and Conting_2

Other Commitments and Contingencies (Tables)	6 Months Ended
Other Commitments and Contingencies (Tables)	Jun. 30, 2023
Other Commitments and Contingencies
Summary of outstanding bonds	The following table summarizes our outstanding performance, licensing, insurance, and other bonds, in thousands: As of June 30, 2023 December 31, 2022 Outstanding bonds: Performance bonds $ 140,363 $ 152,434 Licensing, insurance, and other bonds 25,559 25,439 Total bonds $ 165,922 $ 177,873

Basis of Presentation (Details)

Basis of Presentation (Details)	6 Months Ended
Basis of Presentation (Details)	Jun. 30, 2023 segment
Summary of Significant Accounting Policies
Number of reportable segments	2

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Revenue Recognition
Net sales	$ 1,317,262	$ 1,274,285	$ 2,582,500	$ 2,443,203
Insulation and accessories
Revenue Recognition
Net sales	1,089,487	1,055,263	2,141,083	2,027,554
Glass and windows
Revenue Recognition
Net sales	68,841	57,121	132,283	108,317
Gutters
Revenue Recognition
Net sales	65,918	70,025	126,874	132,611
All other
Revenue Recognition
Net sales	93,016	91,876	182,260	174,721
Residential
Revenue Recognition
Net sales	838,759	831,898	1,657,398	1,588,191
Commercial and Industrial
Revenue Recognition
Net sales	478,503	442,387	925,102	855,012
Operating Segment \| Installation
Revenue Recognition
Net sales	809,055	748,968	1,576,145	1,425,661
Operating Segment \| Installation \| Insulation and accessories
Revenue Recognition
Net sales	633,924	590,099	1,234,691	1,126,440
Operating Segment \| Installation \| Glass and windows
Revenue Recognition
Net sales	68,841	57,121	132,283	108,317
Operating Segment \| Installation \| Gutters
Revenue Recognition
Net sales	29,401	27,240	57,679	50,198
Operating Segment \| Installation \| All other
Revenue Recognition
Net sales	76,889	74,508	151,492	140,706
Operating Segment \| Installation \| Residential
Revenue Recognition
Net sales	668,172	634,078	1,313,875	1,197,382
Operating Segment \| Installation \| Commercial and Industrial
Revenue Recognition
Net sales	140,883	114,890	262,270	228,279
Operating Segment \| Specialty Distribution
Revenue Recognition
Net sales	574,488	587,791	1,132,862	1,131,653
Operating Segment \| Specialty Distribution \| Insulation and accessories
Revenue Recognition
Net sales	513,162	518,507	1,015,964	998,267
Operating Segment \| Specialty Distribution \| Gutters
Revenue Recognition
Net sales	44,088	50,879	83,931	97,509
Operating Segment \| Specialty Distribution \| All other
Revenue Recognition
Net sales	17,238	18,405	32,967	35,877
Operating Segment \| Specialty Distribution \| Residential
Revenue Recognition
Net sales	227,254	247,827	451,579	484,238
Operating Segment \| Specialty Distribution \| Commercial and Industrial
Revenue Recognition
Net sales	347,234	339,964	681,283	647,415
Eliminations
Revenue Recognition
Net sales	(66,281)	(62,474)	(126,507)	(114,111)
Eliminations \| Insulation and accessories
Revenue Recognition
Net sales	(57,599)	(53,343)	(109,572)	(97,153)
Eliminations \| Gutters
Revenue Recognition
Net sales	(7,571)	(8,094)	(14,736)	(15,096)
Eliminations \| All other
Revenue Recognition
Net sales	(1,111)	(1,037)	(2,199)	(1,862)
Eliminations \| Residential
Revenue Recognition
Net sales	(56,667)	(50,007)	(108,056)	(93,429)
Eliminations \| Commercial and Industrial
Revenue Recognition
Net sales	$ (9,614)	$ (12,467)	$ (18,451)	$ (20,682)

Revenue Recognition - Other (De

Revenue Recognition - Other (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Contract Liabilities
Deferred revenue	$ 16,332	$ 21,940
Uncompleted Performance Obligations
Amount remaining on uncompleted performance obligations	$ 419,300
Expected timing of satisfaction of performance obligations	over the next 18 months
Receivables, net
Contract Assets
Receivables, unbilled	$ 87,305	75,481
Uncompleted Performance Obligations
Retained receivables	73,500	63,000
Accrued liabilities
Contract Liabilities
Deferred revenue	$ 16,332	$ 21,940

Goodwill and Other Intangible_2

Goodwill and Other Intangibles - Goodwill (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2022 USD ($)	Jun. 30, 2023 USD ($) item
Changes in the carrying amount of goodwill
Number of reporting units \| item		2
Impairment of goodwill	$ 0
Gross Goodwill, at beginning of period		$ 2,729,015
Additions		23,568
Fx Translation Adjustment		1,387
Gross Goodwill, at end of period	2,729,015	2,753,970
Accumulated Impairment Losses		(762,021)
Net Goodwill	1,966,994	1,991,949
Installation
Changes in the carrying amount of goodwill
Gross Goodwill, at beginning of period		1,826,979
Additions		23,568
Gross Goodwill, at end of period	1,826,979	1,850,547
Accumulated Impairment Losses		(762,021)
Net Goodwill		1,088,526
Specialty Distribution
Changes in the carrying amount of goodwill
Gross Goodwill, at beginning of period		902,036
Fx Translation Adjustment		1,387
Gross Goodwill, at end of period	$ 902,036	903,423
Net Goodwill		$ 903,423

Goodwill and Other Intangible_3

Goodwill and Other Intangibles - Other intangible assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Other intangible assets
Gross Definite-lived intangible assets	$ 797,503		$ 797,503		$ 782,316
Accumulated Amortization	(201,797)		(201,797)		(167,349)
Net definite-lived intangible assets	595,706		595,706		$ 614,967
Amortization expense	$ 17,211	$ 16,809	$ 34,107	$ 33,839

Long-Term Debt - Reconciliation

Long-Term Debt - Reconciliation (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Long-Term Debt
Long-term debt	$ 1,455,848
Unamortized debt issuance costs	(15,912)	$ (17,352)
Total debt, net of unamortized debt issuance costs	1,439,936	1,457,325
Less: current portion of long-term debt	45,142	40,068
Total long-term debt	$ 1,394,794	$ 1,417,257
3.625% Senior Notes
Long-Term Debt
Interest rate (as a percent)	3.625%	3.625%
Long-term debt	$ 400,000	$ 400,000
4.125% Senior Notes
Long-Term Debt
Interest rate (as a percent)	4.125%	4.125%
Long-term debt	$ 500,000	$ 500,000
Term Loan Facility
Long-Term Debt
Long-term debt	551,250	566,250
Equipment Notes
Long-Term Debt
Long-term debt	$ 4,598	$ 8,427

Long-Term Debt - Schedule of de

Long-Term Debt - Schedule of debt maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Schedule of Debt Maturity by Years:
2023	$ 21,239
2024	47,109
2025	48,750
2026	438,750
Thereafter	900,000
Total	1,455,848
3.625% Senior Notes
Schedule of Debt Maturity by Years:
Thereafter	400,000
Total	400,000	$ 400,000
4.125% Senior Notes
Schedule of Debt Maturity by Years:
Thereafter	500,000
Total	500,000	500,000
Term Loan Facility
Schedule of Debt Maturity by Years:
2023	18,750
2024	45,000
2025	48,750
2026	438,750
Total	551,250	566,250
Equipment Notes
Schedule of Debt Maturity by Years:
2023	2,489
2024	2,109
Total	$ 4,598	$ 8,427

Long-Term Debt - Key Terms of C

Long-Term Debt - Key Terms of Credit Agreement (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jul. 25, 2023	Dec. 31, 2022
Revolving Facility
Long-Term Debt
Availability	$ 500,000		$ 500,000
Credit Agreement
Long-Term Debt
Availability		$ 300,000
Additional delayed draw term loan	300,000
Additional term loan and/or revolver capacity available under incremental facility	$ 300,000
Scheduled maturity date	Oct. 07, 2026
Credit Agreement \| Base Rate Borrowings \| Minimum
Long-Term Debt
Applicable margin based on total leverage ratio	0%
Credit Agreement \| Base Rate Borrowings \| Maximum
Long-Term Debt
Applicable margin based on total leverage ratio	1.50%
Credit Agreement \| Base Rate Borrowings \| Federal Funds Rate
Long-Term Debt
Basis spread	0.50%
Credit Agreement \| Base Rate Borrowings \| SOFR
Long-Term Debt
Basis spread	1%
Maturity of the reference rate	1 month
Credit Agreement \| SOFR Rate Borrowings
Long-Term Debt
Interest rate floor (as a percent)	0%
Credit Agreement \| SOFR Rate Borrowings \| Minimum
Long-Term Debt
Applicable margin based on total leverage ratio	1%
Credit Agreement \| SOFR Rate Borrowings \| Maximum
Long-Term Debt
Applicable margin based on total leverage ratio	2.50%
Credit Agreement \| Revolving Facility
Long-Term Debt
Availability	$ 500,000
Sublimit for issuance of letters of credit under Revolving Facility*	100,000
Sublimit for swingline loans under Revolving Facility*	$ 35,000
Interest rate	6.20%
Credit Agreement \| Term Loan Facility
Long-Term Debt
Availability	$ 300,000

Long-Term Debt - Revolving Faci

Long-Term Debt - Revolving Facility (Details) - Revolving Facility - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Long-Term Debt
Revolving Facility	$ 500,000	$ 500,000
Less: standby letters of credit	(67,539)	(67,689)
Availability under revolving facility	$ 432,461	$ 432,311
Minimum
Long-Term Debt
Commitment fee (as a percent)	0.15%
Maximum
Long-Term Debt
Commitment fee (as a percent)	0.275%

Long-Term Debt - Senior Notes a

Long-Term Debt - Senior Notes and Equipment Notes (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Long-Term Debt
Amount outstanding	$ 1,439,936	$ 1,457,325
Debt Instrument Redemption Option Two \| Prior to March 15, 2024
Long-Term Debt
Redemption price as a percentage of principal	103.625%
Debt instrument, conditional redemption, threshold percentage of aggregate principal amount originally issued remains outstanding	60%
Equipment Notes
Long-Term Debt
Principal amount of debt	$ 41,600
Debt term	5 years
Equipment Notes \| Minimum
Long-Term Debt
Interest rate (as a percent)	2.80%
Equipment Notes \| Maximum
Long-Term Debt
Interest rate (as a percent)	4.40%
3.625% Senior Notes
Long-Term Debt
Interest rate (as a percent)	3.625%
Principal amount of debt	$ 400,000
3.625% Senior Notes \| Change in Control Scenario
Long-Term Debt
Redemption price as a percentage of principal	101%
3.625% Senior Notes \| Debt Instrument Redemption Option One \| Prior to March 15, 2024
Long-Term Debt
Redemption price as a percentage of principal	100%
3.625% Senior Notes \| Debt Instrument Redemption Option Two \| Maximum \| Prior to March 15, 2024
Long-Term Debt
Redemption price, percentage of principal amount redeemed	40%
4.125% Senior Notes
Long-Term Debt
Interest rate (as a percent)	4.125%
Principal amount of debt	$ 500,000
4.125% Senior Notes \| On or after October 15, 2026
Long-Term Debt
Redemption price as a percentage of principal	102.063%
4.125% Senior Notes \| On or after October 15, 2027
Long-Term Debt
Redemption price as a percentage of principal	101.375%
4.125% Senior Notes \| On or after October 15, 2028
Long-Term Debt
Redemption price as a percentage of principal	100.688%
4.125% Senior Notes \| On October 15, 2029 and thereafter
Long-Term Debt
Redemption price as a percentage of principal	100%
4.125% Senior Notes \| Prior to October 15, 2026
Long-Term Debt
Basis spread on treasury rate	0.50%
4.125% Senior Notes \| Prior to October 15, 2024
Long-Term Debt
Redemption price as a percentage of principal	104.125%
Redemption price, percentage of principal amount redeemed	40%
Debt instrument, conditional redemption, threshold percentage of aggregate principal amount originally issued remains outstanding	60%
4.125% Senior Notes \| Change in Control Scenario
Long-Term Debt
Redemption price as a percentage of principal	101%

Long-Term Debt - Other (Details

Long-Term Debt - Other (Details)	6 Months Ended
Long-Term Debt - Other (Details)	Jun. 30, 2023
Debt covenants
Maximum Net Leverage Ratio	3.50
Minimum Interest Coverage Ratio	3
Senior Notes \| Event of Default Scenario
Debt covenants
Minimum percentage of principal of debt holders to declare debt immediately due and payable	30%
3.625% Senior Notes
Debt covenants
Interest rate (as a percent)	3.625%
4.125% Senior Notes
Debt covenants
Interest rate (as a percent)	4.125%

Fair Value Measurements (Detail

Fair Value Measurements (Details) $ in Thousands	Jun. 30, 2023 USD ($)
Fair Value on Non-Recurring Basis
Amount outstanding	$ 1,455,848
3.625% Senior Notes
Fair Value on Non-Recurring Basis
Interest rate (as a percent)	3.625%
Amount outstanding	$ 400,000
3.625% Senior Notes \| Fair Value on Non-Recurring Basis \| Level 1 fair value measurement
Fair Value on Non-Recurring Basis
Interest rate (as a percent)	3.625%
Fair value	$ 350,400
4.125% Senior Notes
Fair Value on Non-Recurring Basis
Interest rate (as a percent)	4.125%
Amount outstanding	$ 500,000
4.125% Senior Notes \| Fair Value on Non-Recurring Basis \| Level 1 fair value measurement
Fair Value on Non-Recurring Basis
Interest rate (as a percent)	4.125%
Fair value	$ 430,100

Segment Information (Details)

Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Segment Information (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Segment information
Net sales	$ 1,317,262	$ 1,274,285	$ 2,582,500	$ 2,443,203
Operating profit as, reported	237,103	207,221	436,534	371,175
Other expense, net	(13,953)	(13,689)	(30,069)	(24,969)
Income before income taxes	223,150	193,532	406,465	346,206
Total Assets	4,857,946		4,857,946		$ 4,606,831
Operating Segment
Segment information
Operating profit as, reported	247,060	216,233	457,320	390,624
Operating Segment \| Installation
Segment information
Net sales	809,055	748,968	1,576,145	1,425,661
Operating profit as, reported	172,278	139,919	319,176	252,598
Operating Segment \| Specialty Distribution
Segment information
Net sales	574,488	587,791	1,132,862	1,131,653
Operating profit as, reported	85,980	86,749	159,313	157,170
Eliminations
Segment information
Net sales	(66,281)	(62,474)	(126,507)	(114,111)
Intercompany Eliminations
Segment information
Net sales	(66,281)	(62,474)	(126,507)	(114,111)
Operating profit as, reported	(11,198)	(10,435)	(21,169)	(19,144)
Corporate
Segment information
General corporate expense, net	$ (9,957)	$ (9,012)	$ (20,786)	$ (19,449)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Taxes
Effective tax rate (as a percent)	26.30%	25.80%	26.10%	25.40%
Tax (expense) benefit related to share-based compensation	$ (180)	$ (32)	$ (225)	$ 1,573

Net Income Per Share - Calculat

Net Income Per Share - Calculation (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Net income - basic and diluted	$ 164,400	$ 135,870	$ 143,697	$ 114,711	$ 300,270	$ 258,410
Weighted average number of common shares outstanding - basic	31,599,744		32,405,292		31,575,337	32,570,988
Dilutive effect of common stock equivalents:
Stock options	84,998		104,486		85,522	114,570
Weighted average number of common shares outstanding - diluted	31,731,807		32,614,449		31,722,660	32,827,549
Basic net income per common share	$ 5.20		$ 4.43		$ 9.51	$ 7.93
Diluted net income per common share	$ 5.18		$ 4.41		$ 9.47	$ 7.87
Service-based conditions
Dilutive effect of common stock equivalents:
Restricted stock awards	25,052		12,123		23,848	13,625
Market-based conditions
Dilutive effect of common stock equivalents:
Restricted stock awards	20,039		52,871		22,450	76,515
Performance-based conditions
Dilutive effect of common stock equivalents:
Restricted stock awards	1,974		39,677		15,503	51,851

Net Income Per Share - Anti-dil

Net Income Per Share - Anti-dilutive common stock equivalents (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Anti-dilutive common stock equivalents
Total anti-dilutive common stock equivalents	14,801	41,837	28,590	38,479
Restricted Stock Awards \| Service-based conditions
Anti-dilutive common stock equivalents
Total anti-dilutive common stock equivalents		18,880	5,582	14,562
Restricted Stock Awards \| Market-based conditions
Anti-dilutive common stock equivalents
Total anti-dilutive common stock equivalents		82	4,467	232
Restricted Stock Awards \| Performance-based conditions
Anti-dilutive common stock equivalents
Total anti-dilutive common stock equivalents				3,954
Employee Stock Option [Member]
Anti-dilutive common stock equivalents
Total anti-dilutive common stock equivalents	14,801	22,875	18,541	19,731

Share-Based Compensation - Expe

Share-Based Compensation - Expense (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Share-Based Compensation
Share-based compensation expense	$ 3,751	$ 3,334	$ 6,886	$ 7,061
Income tax (expense) benefit	$ (180)	$ (32)	$ (225)	$ 1,573
2015 Plan
Share-Based Compensation
Number of shares available	1.8		1.8
2015 Plan \| Maximum
Share-Based Compensation
Number of shares authorized	4		4

Share-Based Compensation - Acti

Share-Based Compensation - Activity (Details) - USD ($)				3 Months Ended				6 Months Ended
Share-Based Compensation - Activity (Details) - USD ($)	Feb. 21, 2023	Feb. 15, 2022	Feb. 16, 2021	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2022
Stock Options, Number of Shares
Converted/Exercised (in shares)				(4,762)	(28,840)	(5,835)	(12,269)
Stock options, additional disclosures
Weighted average remaining contractual term for vested stock options								5 years 7 months 6 days
Unrecognized share-based compensation expense
Total unrecognized compensation expense related to unvested awards				$ 22,392,000				$ 22,392,000
Restricted Stock Awards
Restricted Stock Awards, Number of Shares
Balance at beginning of period (in shares)					173,200			173,200
Granted (in shares)								101,300
Converted/Exercised (in shares)								(99,400)
Forfeited/Expired (in shares)								(7,200)
Balance at end of period (in shares)				167,900				167,900
Restricted Stock Awards, Weighted Average Grant Date Fair Value Per Share
Balance at beginning of period (in dollars per share)					$ 195.06			$ 195.06
Granted (in dollars per share)								200.90
Converted/Exercised (in dollars per share)								147.26
Forfeited/Expired (in dollars per share)								231.79
Balance at end of period (in dollars per share)				$ 226.51				$ 226.51
Unrecognized share-based compensation expense
RSAs, Unrecognized Compensation Expense on Unvested Awards				$ 22,105,000				$ 22,105,000
Weighted Average Remaining Compensation Expense Period								1 year 1 month 6 days
Assumptions used to estimate the fair values of the awards granted:
Measurement period (years)								2 years 10 months 9 days	2 years 10 months 13 days	2 years 10 months 13 days
Risk free interest rate (as a percent)								4.42%	1.76%	0.22%
Dividend yield (as a percent)								0%	0%	0%
Estimated fair value of market-based RSAs at grant date (in dollars per share)								$ 270.64	$ 298.20	$ 298.66
Restricted Stock Awards \| Performance-based conditions
Restricted stock awards, additional disclosures
Grant date fair value	$ 4,156,000	$ 3,062,000	$ 2,177,000
Restricted Stock Awards \| Performance-based conditions \| Payout Range-0%
Restricted stock awards, additional disclosures
Payout range (as a percent)	0%	0%	0%
Restricted Stock Awards \| Performance-based conditions \| Payout Range-25%
Restricted stock awards, additional disclosures
Payout range (as a percent)	25%	25%	25%
Related expenses	$ 1,039,000	$ 766,000	$ 544,000
Restricted Stock Awards \| Performance-based conditions \| Payout Range-100%
Restricted stock awards, additional disclosures
Payout range (as a percent)	100%	100%	100%
Related expenses	$ 4,156,000	$ 3,062,000	$ 2,177,000
Restricted Stock Awards \| Performance-based conditions \| Payout Range-200%
Restricted stock awards, additional disclosures
Payout range (as a percent)	200%	200%	200%
Related expenses	$ 8,312,000	$ 6,124,000	$ 4,354,000
RSAs granted February 17, 2020 \| Performance-based conditions
Restricted stock awards, additional disclosures
Cumulative period of achievement								3 years
Cumulative achievement percentage								200%
Total compensation expense recognized over the performance period, net of forfeitures								$ 5,000,000
Employee Stock Option [Member]
Stock Options, Number of Shares
Balance at beginning of period (in shares)					182,200			182,200
Converted/Exercised (in shares)								(33,600)
Balance at end of period (in shares)				148,600				148,600
Stock Options, Weighted Average Grant Date Fair Value Per Share
Balance at beginning of period (in dollars per share)					$ 32.25			$ 32.25
Converted/Exercised (in dollars per share)								16.81
Balance at end of period (in dollars per share)				$ 35.87				35.87
Stock Options, Weighted Average Exercise Price Per Share
Balance at beginning of period (in dollars per share)					$ 86.79			86.79
Converted/Exercised (in dollars per share)								47.42
Balance at end of period (in dollars per share)				$ 95.69				$ 95.69
Stock options, additional disclosures
Aggregate intrinsic value				$ 25,306,800				$ 25,306,800			$ 13,992,300
Converted/Exercised aggregate intrinsic value								$ 5,041,000
Exercisable, Number of shares				141,200				141,200
Exercisable, Weighted Average Grant Date Fair Value Per Share								$ 33.04
Exercisable Weighted Average Exercise Price Per Share				$ 89.44				$ 89.44
Exercisable, Aggregate Intrinsic Value				$ 24,924,800				$ 24,924,800
Unrecognized share-based compensation expense
Stock options, Unrecognized Compensation Expense on Unvested Awards				$ 287,000				$ 287,000
Weighted Average Remaining Compensation Expense Period								4 months 24 days

Business Combinations - Summary

Business Combinations - Summary (Details) - USD ($) $ in Thousands				3 Months Ended		6 Months Ended
	Jan. 26, 2023	Apr. 07, 2022	Feb. 03, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Business Combinations
Acquisition related costs				$ 1,100	$ 900	$ 2,800	$ 1,300
Summary of businesses acquired:
Goodwill expected to be deducted for income tax purposes				23,700	$ 7,500	23,700	7,500
Estimated fair values
Goodwill				1,991,949		1,991,949		$ 1,966,994
SRI Holdings
Business Combinations
Purchase price	$ 45,800
Estimated fair values
Accounts receivable				5,751		5,751
Inventories				4,377		4,377
Prepaid and other assets				203		203
Property and equipment				4,623		4,623
ROU asset (operating)				4,695		4,695
Intangible assets				13,740		13,740
Goodwill				23,687		23,687
Accounts payable				(6,368)		(6,368)
Lease liabilities				(4,771)		(4,771)
All other liabilities				(89)		(89)
Net assets acquired				$ 45,848		$ 45,848
2022 Acquisitions
Summary of businesses acquired:
Cash Paid							13,224
Contingent Consideration							600
Goodwill Acquired							7,499
Billings
Summary of businesses acquired:
Cash Paid			$ 7,005
Goodwill Acquired			$ 3,313
Assured
Summary of businesses acquired:
Cash Paid		$ 4,719
Contingent Consideration		600
Goodwill Acquired		$ 3,406
All others
Summary of businesses acquired:
Cash Paid							1,500
Goodwill Acquired							$ 780

Business Combinations - Intangi

Business Combinations - Intangibles (Details) - SRI Holdings $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($)
Estimates of acquired intangible assets
Estimated Fair Value	$ 13,740
Weighted Average Estimated Useful Life (Years)	12 years
Customer relationships
Estimates of acquired intangible assets
Estimated Fair Value	$ 12,020
Weighted Average Estimated Useful Life (Years)	12 years
Trademarks and trade names
Estimates of acquired intangible assets
Estimated Fair Value	$ 1,520
Weighted Average Estimated Useful Life (Years)	10 years
Non-competition agreements
Estimates of acquired intangible assets
Estimated Fair Value	$ 200
Weighted Average Estimated Useful Life (Years)	5 years

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Accrued Liabilities.
Salaries, wages, and bonus/commissions	$ 68,353	$ 75,237
Insurance liabilities	28,663	28,870
Customer rebates	12,492	21,561
Deferred revenue	16,332	21,940
Sales and property taxes	15,765	15,757
Interest payable on long-term debt	11,978	12,146
Other	27,011	23,859
Total accrued liabilities	$ 180,594	$ 199,370

Other Commitments and Conting_3

Other Commitments and Contingencies (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Outstanding Bonds
Performance bonds	$ 140,363	$ 152,434
Licensing, insurance, and other bonds	25,559	25,439
Total bonds	$ 165,922	$ 177,873

Subsequent Events (Details)

Subsequent Events (Details) $ in Millions	Jul. 26, 2023 USD ($) item	Jul. 17, 2023 USD ($)	Jul. 10, 2023 USD ($)	Jul. 25, 2023 USD ($)
Credit Agreement
Subsequent Events
Availability				$ 300
Subsequent Event \| Amendment No. 4 to Credit Agreement
Subsequent Events
Availability	$ 850
Subsequent Event \| Amendment No. 4 to Credit Agreement \| Delayed Draw Term Loan, July 2023
Subsequent Events
Availability	$ 550
Subsequent Event \| Rocky Mountain
Subsequent Events
Purchase price			$ 7.2
Subsequent Event \| Best Insulation
Subsequent Events
Purchase price		$ 95
Subsequent Event \| SPI \| UNITED STATES
Subsequent Events
Number of branches \| item	85
Subsequent Event \| SPI \| CANADA
Subsequent Events
Number of branches \| item	4
Subsequent Event \| Scenario, Forecast \| SPI
Subsequent Events
Purchase price	$ 960
Debt incurred	$ 550

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 164,400	$ 135,870	$ 143,697	$ 114,711	$ 300,270	$ 258,410

Insider Trading Arrangements

Insider Trading Arrangements	6 Months Ended
Insider Trading Arrangements	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false