Encore Wire (WIRE) 10-K22 Feb 212020 FY Annual reportFinancial data

Company Profile

Cover Page

Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Dec. 31, 2020	Feb. 18, 2021	Jun. 30, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Entity File Number	000-20278
Entity Registrant Name	ENCORE WIRE CORPORATION
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	75-2274963
Entity Address, Address Line One	1329 Millwood Road
Entity Address, City or Town	McKinney,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75069
City Area Code	972
Local Phone Number	562-9473
Title of 12(b) Security	Common Stock, par value $.01 per share
Trading Symbol	WIRE
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 840,792,735
Entity Common Stock, Shares Outstanding		20,631,145
Documents Incorporated by Reference	Listed below are documents, parts of which are incorporated herein by reference, and the part of this report into which the document is incorporated: (1) Proxy statement for the 2021 annual meeting of stockholders – Part III
Entity Central Index Key	0000850460
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

Balance Sheets

Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 183,123	$ 230,965
Accounts receivable, net of allowance of $2,215 and $1,801	275,781	223,098
Inventories	92,322	89,684
Income taxes receivable	1,256	3,602
Prepaid expenses and other	2,651	1,889
Total current assets	555,133	549,238
Property, plant and equipment – at cost:
Land and land improvements	60,662	52,354
Construction-in-progress	91,688	49,847
Buildings and improvements	153,094	152,536
Machinery and equipment	373,902	334,204
Furniture and fixtures	15,345	10,926
Total property, plant and equipment	694,691	599,867
Accumulated depreciation	(283,923)	(266,688)
Property, plant and equipment – net	410,768	333,179
Other assets	553	737
Total assets	966,454	883,154
Current liabilities:
Trade accounts payable	56,726	40,509
Accrued liabilities	36,866	34,787
Total current liabilities	93,592	75,296
Deferred income taxes and other	35,133	28,762
Commitments and contingencies
Stockholders’ equity:
Preferred stock value	0	0
Common stock value	270	269
Additional paid-in capital	67,885	63,009
Treasury stock, at cost – 6,468,705 and 6,027,455 shares	(111,718)	(91,056)
Retained earnings	881,292	806,874
Total stockholders’ equity	837,729	779,096
Total liabilities and stockholders’ equity	$ 966,454	$ 883,154

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for bad debts	$ 2,215	$ 1,801
Preferred stock, par value (in usd per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	27,025,388	26,939,403
Treasury stock (in shares)	6,468,705	6,027,455

Statements of Income

Statements of Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
Net sales	$ 1,276,948	$ 1,274,994	$ 1,288,683
Cost of goods sold	1,082,413	1,109,023	1,098,961
Gross profit	194,535	165,971	189,722
Selling, general and administrative expenses	97,008	94,442	90,212
Operating income	97,527	71,529	99,510
Net interest and other income	1,269	4,199	2,174
Income before income taxes	98,796	75,728	101,684
Provision for income taxes	22,729	17,599	23,534
Net income	$ 76,067	$ 58,129	$ 78,150
Earnings per common and common equivalent share - basic (in usd per share)	$ 3.69	$ 2.78	$ 3.75
Earnings per common and common equivalent share - diluted (in usd per share)	$ 3.68	$ 2.77	$ 3.74
Weighted average common and common equivalent shares outstanding – basic (in shares)	20,599	20,904	20,845
Weighted average common and common equivalent shares outstanding – diluted (in shares)	20,653	20,990	20,910
Cash dividends declared per share (in usd per share)	$ 0.08	$ 0.08	$ 0.08

Statements of Stockholders' Equ

Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings
Beginning balance (in shares) at Dec. 31, 2017		26,859,000		(6,027,000)
Beginning balance at Dec. 31, 2017	$ 641,345	$ 269	$ 58,192	$ (91,056)	$ 673,940
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	78,150				78,150
Exercise of stock options (in shares)		42,000
Exercise of stock options	1,186		1,186
Stock-based compensation (in shares)		5,000
Stock-based compensation	1,444		1,444
Dividend declared—$0.08 per share	$ (1,669)				(1,669)
Purchase of treasury stock (in shares)	0
Ending balance (in shares) at Dec. 31, 2018		26,906,000		(6,027,000)
Ending balance at Dec. 31, 2018	$ 720,456	$ 269	60,822	$ (91,056)	750,421
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	58,129				58,129
Exercise of stock options (in shares)		22,000
Exercise of stock options	568		568
Stock-based compensation (in shares)		11,000
Stock-based compensation	1,619		1,619
Dividend declared—$0.08 per share	$ (1,676)				(1,676)
Purchase of treasury stock (in shares)	0
Ending balance (in shares) at Dec. 31, 2019		26,939,000		(6,027,000)
Ending balance at Dec. 31, 2019	$ 779,096	$ 269	63,009	$ (91,056)	806,874
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	$ 76,067				76,067
Exercise of stock options (in shares)	68,972	69,000
Exercise of stock options	$ 2,999	$ 1	2,998
Stock-based compensation (in shares)		17,000
Stock-based compensation	1,878		1,878
Dividend declared—$0.08 per share	$ (1,649)				(1,649)
Purchase of treasury stock (in shares)	(441,250)			(441,000)
Purchase of treasury stock	$ (20,662)			$ (20,662)
Ending balance (in shares) at Dec. 31, 2020		27,025,000		(6,468,000)
Ending balance at Dec. 31, 2020	$ 837,729	$ 270	$ 67,885	$ (111,718)	$ 881,292

Statements of Stockholders' E_2

Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividends declared per share (in usd per share)	$ 0.08	$ 0.08	$ 0.08

Statements of Cash Flows

Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
Statements of Cash Flows - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Operating Activities
Net income	$ 76,067	$ 58,129	$ 78,150
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	19,459	17,707	16,513
Deferred income taxes	6,429	3,376	3,033
Stock-based compensation attributable to equity awards	1,878	1,619	1,444
Other	470	754	(187)
Changes in operating assets and liabilities:
Accounts receivable	(53,383)	12,255	(6,468)
Inventories	(2,638)	12,683	(10,002)
Other assets	(746)	(229)	627
Trade accounts payable and accrued liabilities	7,580	2,040	165
Current income taxes receivable / payable	2,346	(2,213)	(1,685)
Net cash provided by operating activities	57,462	106,121	81,590
Investing Activities
Purchases of property, plant and equipment	(86,082)	(52,484)	(26,181)
Proceeds from sale of assets	91	28	116
Net cash used in investing activities	(85,991)	(52,456)	(26,065)
Financing Activities
Purchase of treasury stock	(20,662)	0	0
Borrowings from revolver	0	0	67,300
Repayments to revolver	0	0	(67,300)
Proceeds from issuance of common stock, net	2,999	568	1,186
Dividends paid	(1,650)	(1,673)	(1,668)
Net cash used in financing activities	(19,313)	(1,105)	(482)
Net increase (decrease) in cash and cash equivalents	(47,842)	52,560	55,043
Cash and cash equivalents at beginning of period	230,965	178,405	123,362
Cash and cash equivalents at end of period	$ 183,123	$ 230,965	$ 178,405

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
Significant Accounting Policies	Dec. 31, 2020
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Business The Company conducts its business in one segment – the manufacture of electric building wire, principally NM-B cable, for use primarily as interior wiring in homes, apartments, and manufactured housing, and THHN/THWN-2 cable and metal-clad and armored cable for use primarily as wiring in commercial and industrial buildings. The Company sells its products primarily through manufacturers’ representatives located throughout the United States and, to a lesser extent, through its own direct marketing efforts. The principal customers for Encore’s building wire are wholesale electrical distributors. Copper, a commodity product, is the principal raw material used in the Company’s manufacturing operations. The price of copper fluctuates, depending on general economic conditions and in relation to supply and demand and other factors, and has caused monthly variations in the cost of copper purchased by the Company. The Company cannot predict future copper prices or the effect of fluctuations in the cost of copper on the Company’s future operating results. Basis of Presentation The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The financial statements include the accounts of the Company and its former wholly-owned subsidiary, which was dissolved in December 2018. For periods prior to the subsidiary's dissolution, all intercompany accounts and transactions were eliminated upon consolidation. In March 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. To date, COVID-19 has surfaced in nearly all regions around the world and resulted in travel restrictions and business slowdowns or shutdowns in affected areas. Almost all U.S. states, and many local jurisdictions and countries around the world, have, at times during the pandemic, issued “shelter-in-place” orders, quarantines, executive orders and similar government orders, restrictions, and recommendations for their residents to control the spread of COVID-19. The Company is unable to predict the impact that the continued spread of COVID-19 will have on our financial position and operating results in future periods due to numerous uncertainties. The duration and severity of the outbreak and its long-term impact on our business remain uncertain. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Revenue Recognition The majority of our revenue is derived by fulfilling customer orders for the purchase of our products, which include electrical building wire and cable. We recognize revenue at the point in time that control of the ordered products is transferred to the customer, which is typically upon shipment to the customer from our manufacturing facilities and based on agreed upon shipping terms on the related purchase order. Amounts billed and due from our customers are classified as accounts receivables on the balance sheet and require payment on a short-term basis through standard payment terms. Revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders. The amount of consideration we expect to receive and revenue we recognize includes estimates for trade payment discounts and customer rebates which are estimated using historical experience and other relevant factors and is recorded within the same period that the revenue is recognized. We review and update these estimates regularly and the impact of any adjustments are recognized in the period the adjustments are identified. The adjustments resulting from updated estimates of trade payment discounts and customer rebates were not material. Freight Expenses The Company classifies shipping and handling costs as a component of selling, general and administrative expenses. Shipping and handling costs were approximately $35.2 million, $33.9 million and $35.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. Fair Value of Financial Instruments Certain items are required to be measured at fair value on a recurring basis, primarily cash equivalents held in banks. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: Level 1 – Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2 – Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3 – Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. At December 31, 2020 and 2019, the carrying value of cash and cash equivalents, excluding certificates of deposit, approximated fair value, a Level 1 measurement. At December 31, 2020, the Company had no certificates of deposit. At December 31, 2019, the carrying value of the Company’s certificates of deposit totaled $161.3 million approximated fair value, a Level 2 measurement. Concentrations of Credit Risk and Accounts Receivable Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high credit quality financial institutions. Accounts receivable represent amounts due from customers, primarily wholesale electrical distributors, related to the sale of the Company’s products. Such receivables are uncollateralized and are generally due from customers located throughout the United States. Encore has three customers, each of whom slightly exceeds 10% of the Company's total sales. The Company establishes an allowance for credit losses based upon the makeup of the current portfolio, past bad debt experience and current market conditions. Allowance for Losses Progression (In Thousands) 2020 2019 2018 Beginning balance January 1 $ 1,801 $ 2,030 $ 2,028 Write-offs of bad debts (286) (230) — Collection of previous write-offs — 1 2 Adjustment to allowance for credit losses 700 — — Ending balance at December 31 $ 2,215 $ 1,801 $ 2,030 Cash and Cash Equivalents The Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents. At December 31, 2020, the Company’s cash equivalents consisted of investments in money market accounts with the Company’s banks. At December 31, 2019, the Company’s cash equivalents consisted of investments in money market accounts and certificates of deposit with the Company’s banks. Inventories Inventories are stated at the lower of cost, using the last-in, first-out (LIFO) method, or market. The Company evaluates the market value of its raw materials, work-in-process and finished goods inventory primarily based upon current raw material and finished goods prices at the end of each period. Property, Plant, and Equipment Depreciation of property, plant and equipment for financial reporting is provided on the straight-line method over the estimated useful lives of the respective assets as follows: buildings and improvements, 3 to 39 years; machinery and equipment, 2 to 20 years; and furniture and fixtures, 5 to 20 years. Accelerated cost recovery methods are used for tax purposes. Repairs and maintenance costs are expensed as incurred. Stock-Based Compensation Compensation cost for all equity-based compensation expected to vest is measured at fair value on the date of grant and recognized over the related service period. The fair value of stock awards is determined based on the number of shares granted and the quoted price of Encore’s common stock, and the fair value of stock options and stock appreciation rights is estimated on the date of grant using the Black-Scholes model. Such value is recognized as expense over the service period, net of estimated forfeitures, on a straight-line basis. To the extent actual forfeitures or updated estimates of forfeitures differ from management’s current estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised. Earnings Per Share Earnings per common and common equivalent share is computed using the weighted average number of shares of common stock and common stock equivalents outstanding during each period. The dilutive effects of stock awards, which are common stock equivalents, are calculated using the treasury stock method. Income Taxes Income taxes are provided for based on the liability method, resulting in deferred income tax assets and liabilities arising due to temporary differences. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period the change in rate is enacted. Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. There were no differences between comprehensive income and reported income in the periods presented. Recent Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the sole source of authoritative U.S. GAAP other than Securities and Exchange Commission ("SEC") issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standard Update (“ASU”) to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. The following are those ASUs that are relevant to the Company. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which makes significant changes to the accounting for credit losses on financial assets and disclosures about them. This ASU requires immediate recognition of management’s estimates of current expected credit losses. Under the prior model, losses were recognized only as they were incurred, which FASB has noted delayed recognition of expected losses that might not yet have met the threshold of being probable. The guidance affects all entities in all industries and applies to a wide variety of financial assets, including trade receivables. We adopted this new standard January 1, 2020 and applied a loss rate model to compute the expected credit loss allowance of our short-term trade receivable balances, which we concluded are representative of one collective pool. This method is based on relevant information from past events, including historical experiences, current conditions, and reasonable and supportable forecasts that affect collectability. Upon adoption, we recognized a $0.7 million increase to our allowance for credit losses and a corresponding cumulative adjustment to reduce retained earnings, net of income taxes, of $0.5 million. This transition adjustment reflects the development of our models to estimate expected credit losses over the life of our financial assets, which primarily consist of our accounts receivable. Pursuit to ASU 2016-13, we have evaluated our customers’ financial strength and liquidity based on aging of accounts receivable, payment history, and other relevant information, including ratings agency, credit ratings and alerts, and publicly available reports. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. This ASU is effective for annual reporting periods beginning after December 15, 2020, and interim periods within those reporting periods. Early adoption is permitted in any interim or annual period. We are evaluating the effect of adopting this new accounting guidance but do not expect adoption will have a material impact on the Company's financial statements or disclosures.

Inventories

Inventories	12 Months Ended
Inventories	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following as of December 31: In Thousands 2020 2019 Raw materials $ 40,842 $ 25,882 Work-in-process 30,311 25,381 Finished goods 88,544 83,222 Total 159,697 134,485 Adjust to LIFO cost (67,375) (44,801) Inventory $ 92,322 $ 89,684 There were no liquidations of inventories that had a material impact on the Company’s results of operations for any period presented.

Accrued Liabilities

Accrued Liabilities	12 Months Ended
Accrued Liabilities	Dec. 31, 2020
Accrued Liabilities, Current [Abstract]
Accrued Liabilities	Accrued Liabilities Accrued liabilities consist of the following as of December 31: In Thousands 2020 2019 Sales rebates payable $ 19,317 $ 16,622 SAR Liability 5,343 3,087 Property taxes payable 4,427 4,011 Accrued salaries 4,096 7,924 Other accrued liabilities 3,683 3,143 Total accrued liabilities $ 36,866 $ 34,787

Debt

Debt	12 Months Ended
Debt	Dec. 31, 2020
Debt Disclosure [Abstract]
Debt	Debt At December 31, 2020 and 2019, the Company had no debt outstanding. The Company is party to a Credit Agreement (as amended, the “Credit Agreement”) with two banks, Bank of America, N.A., as administrative agent and letter of credit issuer, and Wells Fargo Bank, National Association as syndication agent. The Credit Agreement extends through October 1, 2021, and provides for maximum borrowings of $150.0 million. In the third quarter of 2016, the Company signed a Third Amendment to the Credit Agreement, which, along with other minor changes, eliminated the restriction of maximum borrowings based on the amount of eligible accounts receivable plus the amount of eligible finished goods and raw materials, less any reserves established by the banks. Additionally, at our request and subject to certain conditions, the commitments under the Credit Agreement may be increased by a maximum of up to $100.0 million as long as existing or new lenders agree to provide such additional commitments. Borrowings under the line of credit bear interest, at the Company’s option, at either (1) LIBOR plus a margin that varies from 0.875% to 1.75% depending upon the Leverage Ratio (as defined in the Credit Agreement), or (2) the base rate (which is the highest of the federal funds rate plus 0.5%, the prime rate, or LIBOR plus 1.0%) plus —% to 0.25% (depending upon the Leverage Ratio). A commitment fee ranging from 0.15% to 0.30% (depending upon the Leverage Ratio) is payable on the unused line of credit. At December 31, 2020, there were no borrowings outstanding under the Credit Agreement, and letters of credit outstanding in the amount of $0.6 million left $149.4 million of credit available under the Credit Agreement. Obligations under the Credit Agreement are the only contractual borrowing obligations or commercial borrowing commitments of the Company. Obligations under the Credit Agreement are unsecured and contain customary covenants and events of default. The Company was in compliance with the covenants as of December 31, 2020. On February 9, 2021, the Company terminated the Credit Agreement and entered into a new agreement. The Company is now party to a Credit Agreement ( the “2021 Credit Agreement”) with two banks, Bank of America, N.A., as administrative agent and letter of credit issuer, and Wells Fargo Bank, National Association as syndication agent. The 2021 Credit Agreement extends through February 9, 2026, and provides for maximum borrowings of $200.0 million. The Company paid interest totaling $0.2 million, $0.2 million and $0.3 million in 2020, 2019 and 2018, respectively, none of which was capitalized.

Income Taxes

Income Taxes	12 Months Ended
Income Taxes	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law. The CARES Act includes several provisions for corporations including payroll tax credits, deferment of employer social security tax payments, expanded net operating loss carryback periods, accelerated alternative minimum tax credit refunds, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. The CARES Act did not have a material impact on the Company's income tax provision in the year ended December 31, 2020. The provision for income tax expense are summarized as follows for the years ended December 31: In Thousands 2020 2019 2018 Current: Federal $ 14,277 $ 12,675 $ 18,523 State 2,024 1,549 1,978 Deferred: Federal 6,285 3,260 2,603 State 143 115 430 Total income tax expense $ 22,729 $ 17,599 $ 23,534 The differences between the provision for income taxes and income taxes computed using the federal income tax rate are as follows for the years ended December 31: In Thousands 2020 2019 2018 Amount computed using the statutory rate $ 20,747 $ 15,903 $ 21,354 State income taxes, net of federal tax benefit 1,732 1,314 1,903 Other 250 382 277 Total income tax expense $ 22,729 $ 17,599 $ 23,534 The tax effect of each type of temporary difference giving rise to the net deferred tax liability at December 31 is as follows: In Thousands 2020 2019 Depreciation $ (35,869) $ (27,547) Inventory 503 (1,970) Allowance for credit losses 499 406 Uniform capitalization rules 276 265 Other 754 1,438 Net deferred income tax liability $ (33,837) $ (27,408) The Company's inventory costing method for federal income tax purposes differs from the method allowed by GAAP. Both methods of inventory costing result in the same recovery of inventory. However, the timing of the recovery varies. As of December 31, 2020 the Company's tax inventory exceeds its book inventory, which created a deferred tax asset of $503k. The Company made income tax payments of $14.1 million in 2020, $16.4 million in 2019 and $22.3 million in 2018. The Company was audited by the IRS for the year 2015. The audit concluded with no adjustments. The Company’s federal income tax returns for the years subsequent to December 31, 2016 remain subject to examination. The Company’s income tax returns in major state income tax jurisdictions remain subject to examination for various periods subsequent to December 31, 2015. The Company has no reserves for uncertain tax positions as of December 31, 2020 and 2019. Interest and penalties resulting from audits by tax authorities have been immaterial and are included in the provision for income taxes in the statements of income.

Stock-Based Compensation

Stock-Based Compensation	12 Months Ended
Stock-Based Compensation	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Stock-Based Compensation Total stock-based compensation expense by type of award was as follows for the years ended December 31: In Thousands 2020 2019 2018 Stock options $ 561 $ 635 $ 1,209 Stock appreciation rights (“SARs”) 3,377 2,906 894 Restricted Stock Awards 1,101 $ 907 $ — Stock grants 244 269 $ 235 Total stock-based compensation expense $ 5,283 $ 4,717 $ 2,338 In 2020, the Board of Directors adopted a new stock option plan called the Encore Wire 2020 Long Term Incentive Plan (the “2020 LTIP”) which was approved by the Company’s stockholders at the 2020 Annual Meeting of Stockholders. The 2020 LTIP permits the granting of 1,000,000 securities in the form of options to purchase shares of common stock, stock appreciation rights, restricted common stock, restricted stock units, unrestricted common stock, dividend equivalents, cash awards, or performance awards to non-employee directors, officers and employees of the Company. The 2010 Stock Option Plan expired on February 20, 2020. As of December 31, 2020, 994,500 securities remained available for grant under the 2020 LTIP. Stock Options: No stock option awards were granted in 2020 or 2019. The Company granted stock option awards in 2018 with exercise prices equal to the fair market value of its stock on the date of grant of the options. These options vest ratably over a period of five years from the time the options were granted. The maximum term of any option previously granted under the 2010 Stock Option Plan or granted in the future under the 2020 LTIP is ten years. New shares are issued upon the exercise of options. The following presents a summary of stock option activity for the year ended December 31, 2020: Number Weighted Weighted Aggregate Outstanding at January 1, 2020 393,500 $ 42.36 Exercised (68,972) 49.80 Forfeited/Canceled (10,028) 51.63 Outstanding at December 31, 2020 314,500 $ 41.82 5.1 years $ 5,898 Vested and exercisable at December 31, 2020 226,000 $ 40.03 4.5 years $ 4,642 The fair value of stock options granted in the year ended December 31, 2018, was estimated on the date of grant using a Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2018 Risk-free interest rate 2.36 % Expected dividend yield 0.16 % Expected volatility 31.40 % Expected lives 5.0 years The Company bases expected volatilities on historical volatilities of Encore's common stock. The expected life represents the weighted average period of time that options granted are expected to be outstanding giving consideration to vesting periods and management’s consideration of historical exercise patterns. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding to the expected life of the option. The expected dividend yield is based on the annualized dividend payment paid on common shares. During the year ended December 31, 2018, the weighted average grant date fair value of options granted was $15.95. During the years ended December 31, 2020, 2019 and 2018, the total intrinsic value of options exercised was $0.4 million, $0.7 million and $0.9 million, respectively. As of December 31, 2020, total unrecognized compensation cost related to non-vested stock options of $0.7 million was expected to be recognized over a weighted average period of 1.8 years. Stock Appreciation Rights: In 2014, the Board of Directors adopted a new stock appreciation rights plan called the Encore Wire 2014 Stock Appreciation Rights Plan (the “2014 SARs Plan”). The 2014 SARs Plan permits the grant of SARs that may only be settled in cash to non-executive officers and employees of the Company. SARs granted to employees vest ratably over a period of five years from the time the SARs were granted. The maximum term of any SARs granted under the 2014 SARs Plan is ten years. These awards are classified as liability awards. The liability balances were $5.3 million and $3.1 million at December 31, 2020 and 2019, respectively, and are included in accrued liabilities. Compensation cost for these awards is determined using a fair value method and remeasured at each reporting date until the date of settlement. As of December 31, 2020, a total of 679,500 SARs were outstanding under the 2014 SARs Plan. The following presents a summary of SARs activity for the year ended December 31, 2020: Cash-settled SARs Weighted Weighted Aggregate Outstanding at January 1, 2020 565,300 $ 48.18 Granted 227,500 58.77 Exercised (85,500) 57.52 Forfeited/Canceled (27,800) 53.01 Outstanding at December 31, 2020 679,500 $ 51.99 7.7 years $ 5,831 Vested and exercisable at December 31, 2020 113,900 $ 47.31 6.6 years $ 1,511 The fair value of SARs granted during the years ended December 31, 2020, 2019 and 2018, was estimated on the date of grant using a Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2020 2019 2018 Risk-free interest rate 0.18 % 1.62 % 2.53 % Expected dividend yield 0.13 % 0.14 % 0.16 % Expected volatility 35.51 % 28.46 % 30.83 % Expected lives 2.8 years 3.0 years 3.0 years The Company bases expected volatilities on historical volatilities of Encore's common stock. The expected life represents the weighted average period of time that options granted are expected to be outstanding giving consideration to vesting periods and management’s consideration of historical exercise patterns. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding to the expected life of the option. The expected dividend yield is based on the annualized dividend payment paid on common shares. During the years ended December 31, 2020, 2019 and 2018, the weighted average grant date fair value of SARs granted was $17.94, $17.19 and $14.94, respectively, and the total intrinsic value of SARs exercised was $1.1 million, $2.1 million, and $1.1 million, respectively. As of December 31, 2020, total unrecognized compensation cost related to non-vested SARs of $6.6 million was expected to be recognized over a weighted average period of 3.1 years. Restricted Stock Awards: During the years ended December 31, 2020 and 2019, the Company granted 37,000 shares and 60,000 shares, respectively, of restricted stock to employees pursuant to the 2010 Stock Option Plan, with weighted grant date fair values of $58.90 and $54.49 per share, respectively. There were no restricted shares issued in 2018. As of December 31, 2020, there was $3.4 million of total unrecognized compensation cost related to unvested shares. That cost is expected to be recognized over a weighted-average period of 3.5 years. The total fair value of shares vested during the year ending December 31, 2020 was $0.7 million. The following presents a summary of restricted stock activity for the year ended December 31, 2020: Weighted Average Number of Shares Grant Date Fair Value Outstanding at January 1, 2020 50,000 $ 55.00 Granted 37,000 58.90 Vested (12,000) 55.94 Unvested at December 31, 2020 $ 75,000 $ 56.77 Stock Grants:

Earnings Per Share

Earnings Per Share	12 Months Ended
Earnings Per Share	Dec. 31, 2020
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following table sets forth certain components of the computation of basic and diluted earnings per share for the years ended December 31: In Thousands 2020 2019 2018 Numerator: Net income $ 76,067 $ 58,129 $ 78,150 Denominator: Denominator for basic earnings per share – weighted average shares 20,599 20,904 20,845 Effect of dilutive securities: Employee stock awards 54 86 65 Denominator for diluted earnings per share – weighted average shares 20,653 20,990 20,910 Stock options to purchase common stock at exercise prices in excess of the average actual stock price for the period that were anti-dilutive and that were excluded from the determination of diluted earnings per share are as follows: In Thousands, Except Per Share Data 2020 2019 2018 Weighted average anti-dilutive stock options 136 118 181 Weighted average exercise price per share $ 51.20 $ 51.05 $ 50.20

Stockholders' Equity

Stockholders' Equity	12 Months Ended
Stockholders' Equity	Dec. 31, 2020
Equity [Abstract]
Stockholders' Equity	Stockholders’ EquityOn November 10, 2006, the Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to an authorized number of shares of its common stock on the open market or through privately negotiated transactions at prices determined by the President of the Company during the term of the program. The Company’s Board of Directors has authorized several increases and annual extensions of this stock repurchase program, and, as of December 31, 2020, 1,000,000 shares remained authorized for repurchase through March 31, 2021. Subsequently, the authorization for repurchase was extended through March 31, 2022. The Company repurchased 441,250 shares of its stock in 2020, and did not repurchase any shares of its stock in 2019 or 2018. The Company also has a broker agreement to repurchase stock in the open market at certain trigger points pursuant to a Rule 10b5-1 plan announced on November 28, 2007. Repurchased shares are recorded as treasury shares.

Contingencies

Contingencies	12 Months Ended
Contingencies	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Contingencies	ContingenciesThere are no material pending proceedings to which the Company is a party or to which any of its property is subject. However, the Company is from time to time involved in litigation, certain other claims and arbitration matters arising in the ordinary course of its business.

Encore Wire Corporation 401(k)

Encore Wire Corporation 401(k) Profit Sharing Plan	12 Months Ended
Encore Wire Corporation 401(k) Profit Sharing Plan	Dec. 31, 2020
Retirement Benefits [Abstract]
Encore Wire Corporation 401(k) Profit Sharing Plan	Encore Wire Corporation 401(k) Profit Sharing PlanThe Company sponsors a 401(k) profit sharing plan (the “Plan”) that permits eligible employees to make self-directed contributions of their compensation, a portion of which is matched by the Company, subject to applicable limitations. At the discretion of its Board of Directors, the Company may, but is not required to, make profit-sharing contributions to the Plan on behalf of its employees. The Company’s matching contributions were $2.5 million, $2.5 million and $2.1 million in 2020, 2019 and 2018, respectively.

Quarterly Financial Information

Quarterly Financial Information (Unaudited)	12 Months Ended
Quarterly Financial Information (Unaudited)	Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]
Quarterly Financial Information (Unaudited)	Quarterly Financial Information (Unaudited) The following is a summary of the unaudited quarterly financial information for the two years ended December 31, 2020 and 2019 (in thousands, except per share data): Three Months Ended 2020 March 31 June 30 September 30 December 31 Net sales $ 302,794 $ 253,631 $ 339,700 $ 380,823 Gross profit 45,773 36,499 53,459 58,804 Net income 18,607 12,347 21,012 24,100 Earnings per common share – basic 0.89 0.60 1.02 1.17 Earnings per common share – diluted 0.89 0.60 1.02 1.17 Three Months Ended 2019 March 31 June 30 September 30 December 31 Net sales $ 314,707 $ 336,866 $ 321,169 $ 302,252 Gross profit 41,326 45,910 42,988 35,747 Net income 13,411 17,782 16,401 10,535 Earnings per common share – basic 0.64 0.85 0.78 0.50 Earnings per common share – diluted 0.64 0.85 0.78 0.50

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
Significant Accounting Policies (Policies)	Dec. 31, 2020
Accounting Policies [Abstract]
Business	Business The Company conducts its business in one segment – the manufacture of electric building wire, principally NM-B cable, for use primarily as interior wiring in homes, apartments, and manufactured housing, and THHN/THWN-2 cable and metal-clad and armored cable for use primarily as wiring in commercial and industrial buildings. The Company sells its products primarily through manufacturers’ representatives located throughout the United States and, to a lesser extent, through its own direct marketing efforts. The principal customers for Encore’s building wire are wholesale electrical distributors.
Principles of Consolidation	Basis of Presentation The Company's financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The financial statements include the accounts of the Company and its former wholly-owned subsidiary, which was dissolved in December 2018. For periods prior to the subsidiary's dissolution, all intercompany accounts and transactions were eliminated upon consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Revenue Recognition	Revenue Recognition The majority of our revenue is derived by fulfilling customer orders for the purchase of our products, which include electrical building wire and cable. We recognize revenue at the point in time that control of the ordered products is transferred to the customer, which is typically upon shipment to the customer from our manufacturing facilities and based on agreed upon shipping terms on the related purchase order. Amounts billed and due from our customers are classified as accounts receivables on the balance sheet and require payment on a short-term basis through standard payment terms. Revenue is measured as the amount of consideration we expect to receive in exchange for fulfilling product orders. The amount of consideration we expect to receive and revenue we recognize includes estimates for trade payment discounts and customer rebates which are estimated using historical experience and other relevant factors and is recorded within the same period that the revenue is recognized. We review and update these estimates regularly and the impact of any adjustments are recognized in the period the adjustments are identified. The adjustments resulting from updated estimates of trade payment discounts and customer rebates were not material.
Freight Expenses	Freight ExpensesThe Company classifies shipping and handling costs as a component of selling, general and administrative expenses.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Certain items are required to be measured at fair value on a recurring basis, primarily cash equivalents held in banks. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. A three-level hierarchy is followed for disclosure to show the extent and level of judgment used to estimate fair value measurements: Level 1 – Inputs used to measure fair value are unadjusted quoted prices that are available in active markets for the identical assets or liabilities as of the reporting date. Level 2 – Inputs used to measure fair value, other than quoted prices included in Level 1, are either directly or indirectly observable as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument. Level 3 – Inputs used to measure fair value are unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.
Concentrations of Credit Risk and Accounts Receivable	Concentrations of Credit Risk and Accounts Receivable Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high credit quality financial institutions. Accounts receivable represent amounts due from customers, primarily wholesale electrical distributors, related to the sale of the Company’s products. Such receivables are uncollateralized and are generally due from customers located throughout the United States. Encore has three customers, each of whom slightly exceeds 10% of the Company's total sales. The Company establishes an allowance for credit losses based upon the makeup of the current portfolio, past bad debt experience and current market conditions.
Concentrations of Credit Risk and Accounts Receivable	Concentrations of Credit Risk and Accounts Receivable Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash and cash equivalents and accounts receivable. The Company places its cash and cash equivalents with high credit quality financial institutions. Accounts receivable represent amounts due from customers, primarily wholesale electrical distributors, related to the sale of the Company’s products. Such receivables are uncollateralized and are generally due from customers located throughout the United States. Encore has three customers, each of whom slightly exceeds 10% of the Company's total sales. The Company establishes an allowance for credit losses based upon the makeup of the current portfolio, past bad debt experience and current market conditions.
Cash and Cash Equivalents	Cash and Cash EquivalentsThe Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents.
Inventories	Inventories Inventories are stated at the lower of cost, using the last-in, first-out (LIFO) method, or market. The Company evaluates the market value of its raw materials, work-in-process and finished goods inventory primarily based upon current raw material and finished goods prices at the end of each period.
Property, Plant, and Equipment	Property, Plant, and Equipment Depreciation of property, plant and equipment for financial reporting is provided on the straight-line method over the estimated useful lives of the respective assets as follows: buildings and improvements, 3 to 39 years; machinery and equipment, 2 to 20
Stock-Based Compensation	Stock-Based CompensationCompensation cost for all equity-based compensation expected to vest is measured at fair value on the date of grant and recognized over the related service period. The fair value of stock awards is determined based on the number of shares granted and the quoted price of Encore’s common stock, and the fair value of stock options and stock appreciation rights is estimated on the date of grant using the Black-Scholes model. Such value is recognized as expense over the service period, net of estimated forfeitures, on a straight-line basis. To the extent actual forfeitures or updated estimates of forfeitures differ from management’s current estimates, such amounts are recorded as a cumulative adjustment in the period estimates are revised.
Earnings Per Share	Earnings Per Share Earnings per common and common equivalent share is computed using the weighted average number of shares of common stock and common stock equivalents outstanding during each period. The dilutive effects of stock awards, which are common stock equivalents, are calculated using the treasury stock method.
Income Taxes	Income Taxes Income taxes are provided for based on the liability method, resulting in deferred income tax assets and liabilities arising due to temporary differences. Temporary differences are differences between the tax basis of assets and liabilities and their reported amounts in the financial statements that will result in taxable or deductible amounts in future years. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period the change in rate is enacted.
Comprehensive Income	Comprehensive IncomeComprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the sole source of authoritative U.S. GAAP other than Securities and Exchange Commission ("SEC") issued rules and regulations that apply only to SEC registrants. The FASB issues an Accounting Standard Update (“ASU”) to communicate changes to the codification. The Company considers the applicability and impact of all ASUs. The following are those ASUs that are relevant to the Company. In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326),” which makes significant changes to the accounting for credit losses on financial assets and disclosures about them. This ASU requires immediate recognition of management’s estimates of current expected credit losses. Under the prior model, losses were recognized only as they were incurred, which FASB has noted delayed recognition of expected losses that might not yet have met the threshold of being probable. The guidance affects all entities in all industries and applies to a wide variety of financial assets, including trade receivables. We adopted this new standard January 1, 2020 and applied a loss rate model to compute the expected credit loss allowance of our short-term trade receivable balances, which we concluded are representative of one collective pool. This method is based on relevant information from past events, including historical experiences, current conditions, and reasonable and supportable forecasts that affect collectability. Upon adoption, we recognized a $0.7 million increase to our allowance for credit losses and a corresponding cumulative adjustment to reduce retained earnings, net of income taxes, of $0.5 million. This transition adjustment reflects the development of our models to estimate expected credit losses over the life of our financial assets, which primarily consist of our accounts receivable. Pursuit to ASU 2016-13, we have evaluated our customers’ financial strength and liquidity based on aging of accounts receivable, payment history, and other relevant information, including ratings agency, credit ratings and alerts, and publicly available reports. In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. This ASU is effective for annual reporting periods beginning after December 15, 2020, and interim periods within those reporting periods. Early adoption is permitted in any interim or annual period. We are evaluating the effect of adopting this new accounting guidance but do not expect adoption will have a material impact on the Company's financial statements or disclosures.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	12 Months Ended
Significant Accounting Policies (Tables)	Dec. 31, 2020
Accounting Policies [Abstract]
Schedule of Allowance for Losses Progression	The Company establishes an allowance for credit losses based upon the makeup of the current portfolio, past bad debt experience and current market conditions. Allowance for Losses Progression (In Thousands) 2020 2019 2018 Beginning balance January 1 $ 1,801 $ 2,030 $ 2,028 Write-offs of bad debts (286) (230) — Collection of previous write-offs — 1 2 Adjustment to allowance for credit losses 700 — — Ending balance at December 31 $ 2,215 $ 1,801 $ 2,030

Inventories (Tables)

Inventories (Tables)	12 Months Ended
Inventories (Tables)	Dec. 31, 2020
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consist of the following as of December 31: In Thousands 2020 2019 Raw materials $ 40,842 $ 25,882 Work-in-process 30,311 25,381 Finished goods 88,544 83,222 Total 159,697 134,485 Adjust to LIFO cost (67,375) (44,801) Inventory $ 92,322 $ 89,684

Accrued Liabilities (Tables)

Accrued Liabilities (Tables)	12 Months Ended
Accrued Liabilities (Tables)	Dec. 31, 2020
Accrued Liabilities, Current [Abstract]
Schedule of Accrued Liabilities	Accrued liabilities consist of the following as of December 31: In Thousands 2020 2019 Sales rebates payable $ 19,317 $ 16,622 SAR Liability 5,343 3,087 Property taxes payable 4,427 4,011 Accrued salaries 4,096 7,924 Other accrued liabilities 3,683 3,143 Total accrued liabilities $ 36,866 $ 34,787

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
Income Taxes (Tables)	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expenses	The provision for income tax expense are summarized as follows for the years ended December 31: In Thousands 2020 2019 2018 Current: Federal $ 14,277 $ 12,675 $ 18,523 State 2,024 1,549 1,978 Deferred: Federal 6,285 3,260 2,603 State 143 115 430 Total income tax expense $ 22,729 $ 17,599 $ 23,534
Schedule of Differences Between Provision for Income Taxes and Income Taxes Computed Using Federal Income Tax Rate	The differences between the provision for income taxes and income taxes computed using the federal income tax rate are as follows for the years ended December 31: In Thousands 2020 2019 2018 Amount computed using the statutory rate $ 20,747 $ 15,903 $ 21,354 State income taxes, net of federal tax benefit 1,732 1,314 1,903 Other 250 382 277 Total income tax expense $ 22,729 $ 17,599 $ 23,534
Schedule of Net Deferred Tax Liability	The tax effect of each type of temporary difference giving rise to the net deferred tax liability at December 31 is as follows: In Thousands 2020 2019 Depreciation $ (35,869) $ (27,547) Inventory 503 (1,970) Allowance for credit losses 499 406 Uniform capitalization rules 276 265 Other 754 1,438 Net deferred income tax liability $ (33,837) $ (27,408)

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	12 Months Ended
Stock-Based Compensation (Tables)	Dec. 31, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Total Stock-Based Compensation Expense by Type of Award	Total stock-based compensation expense by type of award was as follows for the years ended December 31: In Thousands 2020 2019 2018 Stock options $ 561 $ 635 $ 1,209 Stock appreciation rights (“SARs”) 3,377 2,906 894 Restricted Stock Awards 1,101 $ 907 $ — Stock grants 244 269 $ 235 Total stock-based compensation expense $ 5,283 $ 4,717 $ 2,338
Schedule of Stock Option Activity	The following presents a summary of stock option activity for the year ended December 31, 2020: Number Weighted Weighted Aggregate Outstanding at January 1, 2020 393,500 $ 42.36 Exercised (68,972) 49.80 Forfeited/Canceled (10,028) 51.63 Outstanding at December 31, 2020 314,500 $ 41.82 5.1 years $ 5,898 Vested and exercisable at December 31, 2020 226,000 $ 40.03 4.5 years $ 4,642
Schedule of Stock Options Valuation Assumptions	The fair value of stock options granted in the year ended December 31, 2018, was estimated on the date of grant using a Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2018 Risk-free interest rate 2.36 % Expected dividend yield 0.16 % Expected volatility 31.40 % Expected lives 5.0 years
Schedule of Stock Appreciation Rights Activity	The following presents a summary of SARs activity for the year ended December 31, 2020: Cash-settled SARs Weighted Weighted Aggregate Outstanding at January 1, 2020 565,300 $ 48.18 Granted 227,500 58.77 Exercised (85,500) 57.52 Forfeited/Canceled (27,800) 53.01 Outstanding at December 31, 2020 679,500 $ 51.99 7.7 years $ 5,831 Vested and exercisable at December 31, 2020 113,900 $ 47.31 6.6 years $ 1,511
Schedule of Stock Appreciation Rights Valuation Assumptions	The fair value of SARs granted during the years ended December 31, 2020, 2019 and 2018, was estimated on the date of grant using a Black-Scholes option pricing model and the following weighted average assumptions: Year Ended December 31, 2020 2019 2018 Risk-free interest rate 0.18 % 1.62 % 2.53 % Expected dividend yield 0.13 % 0.14 % 0.16 % Expected volatility 35.51 % 28.46 % 30.83 % Expected lives 2.8 years 3.0 years 3.0 years
Schedule of Restricted Stock Activity	The following presents a summary of restricted stock activity for the year ended December 31, 2020: Weighted Average Number of Shares Grant Date Fair Value Outstanding at January 1, 2020 50,000 $ 55.00 Granted 37,000 58.90 Vested (12,000) 55.94 Unvested at December 31, 2020 $ 75,000 $ 56.77

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
Earnings Per Share (Tables)	Dec. 31, 2020
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Share	The following table sets forth certain components of the computation of basic and diluted earnings per share for the years ended December 31: In Thousands 2020 2019 2018 Numerator: Net income $ 76,067 $ 58,129 $ 78,150 Denominator: Denominator for basic earnings per share – weighted average shares 20,599 20,904 20,845 Effect of dilutive securities: Employee stock awards 54 86 65 Denominator for diluted earnings per share – weighted average shares 20,653 20,990 20,910
Schedule of Anti-dilutive Excluded from Diluted Earnings Per Share	Stock options to purchase common stock at exercise prices in excess of the average actual stock price for the period that were anti-dilutive and that were excluded from the determination of diluted earnings per share are as follows: In Thousands, Except Per Share Data 2020 2019 2018 Weighted average anti-dilutive stock options 136 118 181 Weighted average exercise price per share $ 51.20 $ 51.05 $ 50.20

Quarterly Financial Informati_2

Quarterly Financial Information (Unaudited) (Tables)	12 Months Ended
Quarterly Financial Information (Unaudited) (Tables)	Dec. 31, 2020
Quarterly Financial Information Disclosure [Abstract]
Schedule of Unaudited Quarterly Financial Information	The following is a summary of the unaudited quarterly financial information for the two years ended December 31, 2020 and 2019 (in thousands, except per share data): Three Months Ended 2020 March 31 June 30 September 30 December 31 Net sales $ 302,794 $ 253,631 $ 339,700 $ 380,823 Gross profit 45,773 36,499 53,459 58,804 Net income 18,607 12,347 21,012 24,100 Earnings per common share – basic 0.89 0.60 1.02 1.17 Earnings per common share – diluted 0.89 0.60 1.02 1.17 Three Months Ended 2019 March 31 June 30 September 30 December 31 Net sales $ 314,707 $ 336,866 $ 321,169 $ 302,252 Gross profit 41,326 45,910 42,988 35,747 Net income 13,411 17,782 16,401 10,535 Earnings per common share – basic 0.64 0.85 0.78 0.50 Earnings per common share – diluted 0.64 0.85 0.78 0.50

Significant Accounting Polici_4

Significant Accounting Policies - Narrative (Details)	Jan. 01, 2020USD ($)	Dec. 31, 2020USD ($)customersegment	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Significant Accounting Policies [Line Items]
Number of business segments \| segment		1
Selling, general and administrative expenses		$ 97,008,000	$ 94,442,000	$ 90,212,000
Certificates of deposit		0	161,300,000
Retained earnings		$ (881,292,000)	(806,874,000)
Cumulative Effect, Period of Adoption, Adjustment \| Accounting Standards Update 2016-13
Significant Accounting Policies [Line Items]
Allowance for credit losses, period increase (decrease)	$ 700,000
Retained earnings	$ 500,000
Buildings and Improvements \| Minimum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)		3 years
Buildings and Improvements \| Maximum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)		39 years
Machinery and Equipment \| Minimum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)		2 years
Machinery and Equipment \| Maximum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)		20 years
Furniture and Fixtures \| Minimum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)		5 years
Furniture and Fixtures \| Maximum
Significant Accounting Policies [Line Items]
Estimated useful lives of property plant and equipment (in years)		20 years
Customer Concentration Risk \| Sales Revenue, Net
Significant Accounting Policies [Line Items]
Customer concentration risk, number of customers \| customer		3
Shipping and Handling
Significant Accounting Policies [Line Items]
Selling, general and administrative expenses		$ 35,200,000	$ 33,900,000	$ 35,100,000

Significant Accounting Polici_5

Significant Accounting Policies - Summary of Allowance for Losses Progression (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning balance January 1	$ 1,801	$ 2,030	$ 2,028
Write-offs of bad debts	(286)	(230)	0
Collection of previous write-offs	0	1	2
Adjustment to allowance for credit losses	700	0	0
Ending balance at December 31	$ 2,215	$ 1,801	$ 2,030

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 40,842	$ 25,882
Work-in-process	30,311	25,381
Finished goods	88,544	83,222
Total	159,697	134,485
Adjust to LIFO cost	(67,375)	(44,801)
Inventory	$ 92,322	$ 89,684

Accrued Liabilities (Details)

Accrued Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Accrued Liabilities, Current [Abstract]
Sales rebates payable	$ 19,317	$ 16,622
SAR Liability	5,343	3,087
Property taxes payable	4,427	4,011
Accrued salaries	4,096	7,924
Other accrued liabilities	3,683	3,143
Total accrued liabilities	$ 36,866	$ 34,787

Debt (Details)

Debt (Details)	Feb. 09, 2021USD ($)bank	Dec. 31, 2020USD ($)bank	Dec. 31, 2019USD ($)	Dec. 31, 2018USD ($)
Line of Credit Facility [Line Items]
Debt outstanding		$ 0	$ 0
Number of banks to which the company is party to a credit agreement \| bank		2
Outstanding borrowings		$ 0
Letters of credit outstanding		600,000
Remaining borrowing capacity		149,400,000
Total interest paid		200,000	200,000	$ 300,000
Total interest capitalized		0	$ 0	$ 0
Subsequent Event
Line of Credit Facility [Line Items]
Number of banks to which the company is party to a credit agreement \| bank	2
Calculated maximum borrowings	$ 200,000,000
Credit Agreement
Line of Credit Facility [Line Items]
Calculated maximum borrowings		150,000,000
Available increase in borrowings under credit agreement		$ 100,000,000
Minimum \| Credit Agreement
Line of Credit Facility [Line Items]
Percentage of commitment fee		0.15%
Maximum \| Credit Agreement
Line of Credit Facility [Line Items]
Percentage of commitment fee		0.30%
Credit Agreement Interest Rate Option One \| London Interbank Offered Rate (LIBOR) \| Minimum \| Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate		0.875%
Credit Agreement Interest Rate Option One \| London Interbank Offered Rate (LIBOR) \| Maximum \| Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate		1.75%
Credit Agreement Interest Rate Option Two \| London Interbank Offered Rate (LIBOR) \| Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate		1.00%
Credit Agreement Interest Rate Option Two \| Federal Funds Rate \| Maximum \| Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate		0.50%
Credit Agreement Interest Rate Option Two \| Base Rate \| Minimum \| Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate		0.00%
Credit Agreement Interest Rate Option Two \| Base Rate \| Maximum \| Credit Agreement
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate		0.25%

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($)	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Inventory	$ 503,000
Income tax payments	14,100,000	$ 16,400,000	$ 22,300,000
Reserve for uncertain tax positions	$ 0	$ 0

Income Taxes - Summary of Incom

Income Taxes - Summary of Income Tax Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Current:
Federal	$ 14,277	$ 12,675	$ 18,523
State	2,024	1,549	1,978
Deferred:
Federal	6,285	3,260	2,603
State	143	115	430
Total income tax expense	$ 22,729	$ 17,599	$ 23,534

Income Taxes - Summary of Diffe

Income Taxes - Summary of Differences Between Provision for Income Taxes and Income Taxes Computed Using Federal Income Tax Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Amount computed using the statutory rate	$ 20,747	$ 15,903	$ 21,354
State income taxes, net of federal tax benefit	1,732	1,314	1,903
Other	250	382	277
Total income tax expense	$ 22,729	$ 17,599	$ 23,534

Income Taxes - Summary of Net D

Income Taxes - Summary of Net Deferred Tax Liability (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Depreciation	$ (35,869)	$ (27,547)
Inventory	503
Inventory		(1,970)
Allowance for credit losses	499	406
Uniform capitalization rules	276	265
Other	754	1,438
Net deferred income tax liability	$ (33,837)	$ (27,408)

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock-based Compensation Expense by Type of Award (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 5,283	$ 4,717	$ 2,338
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	561	635	1,209
Stock appreciation rights (“SARs”)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	3,377	2,906	894
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	1,101	907	0
Stock grants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense	$ 244	$ 269	$ 235

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions	1 Months Ended				12 Months Ended
	May 31, 2020$ / sharesshares	Jun. 30, 2019director$ / sharesshares	May 31, 2018director$ / sharesshares	May 31, 2017director	Dec. 31, 2020USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares	Dec. 31, 2018USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of securities authorized \| shares					1,000,000
Options available to be granted (in shares) \| shares					994,500,000,000
Stock options granted (in shares) \| shares	1,100	1,000	1,000		0	0
Stock option expiration period					10 years
Weighted average grant date fair value of options (in usd per share) \| $ / shares	$ 44.31	$ 53.81	$ 46.95				$ 15.95
Total intrinsic value of options exercised					$ 0.4	$ 0.7	$ 0.9
Total unrecognized compensation cost related to non-vested stock options					$ 0.7
Number of non-employee directors \| director		5	5	5
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vested period					5 years
Weighted average period of compensation cost					1 year 9 months 18 days
Stock appreciation rights (“SARs”)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option vested period					5 years
Stock option expiration period					10 years
Weighted average period of compensation cost					3 years 1 month 6 days
Liability balance					$ 5.3	$ 3.1
Stock appreciation rights outstanding (in shares) \| shares					679,500	565,300
Weighted average grant date fair value (in usd per share) \| $ / shares					$ 17.94	$ 17.19	$ 14.94
Intrinsic value of SARs exercised					$ 1.1	$ 2.1	$ 1.1
Total unrecognized compensation cost related to non-vested SARs					$ 6.6
Restricted Stock Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period of compensation cost					3 years 6 months
Weighted average grant date fair value (in usd per share) \| $ / shares					$ 58.90	$ 54.49
Total unrecognized compensation cost related to non-vested SARs					$ 3.4
Granted (in shares) \| shares					37,000	60,000	0
Total fair value of shares vested during year					$ 0.7

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)$ / sharesshares
Number of Shares
Number of shares outstanding, beginning balance \| shares	393,500
Number of shares exercised \| shares	(68,972)
Number of shares forfeited/canceled \| shares	(10,028)
Number of shares outstanding, ending balance \| shares	314,500
Number of shares vested and exercisable \| shares	226,000
Weighted Average Exercise Price
Weighted average exercise price outstanding, beginning balance (in usd per share) \| $ / shares	$ 42.36
Weighted average exercise price, exercised (in usd per share) \| $ / shares	49.80
Weighted average exercise price, forfeited/canceled (in usd per share) \| $ / shares	51.63
Weighted average exercise price outstanding, ending balance (in usd per share) \| $ / shares	41.82
Weighted average exercise price, vested and exercisable (in usd per share) \| $ / shares	$ 40.03
Weighted average remaining contractual term, ending balance	5 years 1 month 6 days
Weighted average remaining contractual term, vested and exercisable	4 years 6 months
Aggregate intrinsic value ending balance \| $	$ 5,898
Aggregate intrinsic value, vested and exercisable \| $	$ 4,642

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Stock Appreciation Rights Activity (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2020USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Vested and exercisable (in shares)	226,000
Stock appreciation rights (“SARs”)
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward]
Beginning balance (in shares)	565,300
Granted (in shares)	227,500
Exercised (in shares)	(85,500)
Forfeited/Canceled (in shares)	(27,800)
Ending balance (in shares)	679,500
Vested and exercisable (in shares)	113,900
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Beginning balance (in usd per share) \| $ / shares	$ 48.18
Granted (in usd per share) \| $ / shares	58.77
Exercised (in usd per share) \| $ / shares	57.52
Forfeited/Canceled (in usd per share) \| $ / shares	53.01
Ending balance (in usd per share) \| $ / shares	51.99
Vested and exercisable (in usd per share) \| $ / shares	$ 47.31
Outstanding, weighted average contractual term (in years)	7 years 8 months 12 days
Vested and exercisable, weighted average contractual term (in years)	6 years 7 months 6 days
Outstanding, aggregate intrinsic value \| $	$ 5,831
Vested and exercisable, aggregate intrinsic value \| $	$ 1,511

Stock-Based Compensation - St_2

Stock-Based Compensation - Stock Options and Stock Appreciation Rights Valuation Assumptions (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)			2.36%
Expected dividend yield (as a percent)			0.16%
Expected volatility (as a percent)			31.40%
Expected lives (in years)			5 years
Stock appreciation rights (“SARs”)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate (as a percent)	0.18%	1.62%	2.53%
Expected dividend yield (as a percent)	0.13%	0.14%	0.16%
Expected volatility (as a percent)	35.51%	28.46%	30.83%
Expected lives (in years)	2 years 9 months 18 days	3 years	3 years

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of Restricted Stock Awards (Details) - Restricted Stock Awards - $ / shares	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Number of Shares
Outstanding at January 1, 2020 (in shares)	50,000
Granted (in shares)	37,000	60,000	0
Vested (in shares)	(12,000)
Unvested at December 31, 2020 (in shares)	75,000	50,000
Weighted Average Grant Date Fair Value
Outstanding at January 1, 2020 (in usd per share)	$ 55
Granted (in usd per share)	58.90	$ 54.49
Vested (in usd per share)	55.94
Unvested at December 31, 2020 (in usd per share)	$ 56.77	$ 55

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted Net Earnings (Loss) Per Share (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Numerator:
Net income	$ 24,100	$ 21,012	$ 12,347	$ 18,607	$ 10,535	$ 16,401	$ 17,782	$ 13,411	$ 76,067	$ 58,129	$ 78,150
Denominator:
Denominator for basic earnings per share – weighted average shares (in shares)									20,599	20,904	20,845
Effect of dilutive securities:
Employee stock options (in shares)									54	86	65
Denominator for diluted earnings per share – weighted average shares (in shares)									20,653	20,990	20,910

Earnings Per Share - Anti-dilut

Earnings Per Share - Anti-dilutive Excluded from Diluted Earnings Per Share (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Weighted average anti-dilutive stock options (in shares)	136	118	181
Weighted average exercise price per share (in usd per share)	$ 51.20	$ 51.05	$ 50.20

Stockholders' Equity (Details)

Stockholders' Equity (Details) - shares	12 Months Ended
Stockholders' Equity (Details) - shares	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Repurchase of common stock authorized remaining (in shares)	1,000,000
Purchase of treasury stock (in shares)	441,250	0	0

Encore Wire Corporation 401(k_2

Encore Wire Corporation 401(k) Profit Sharing Plan (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Matching contributions made	$ 2.5	$ 2.5	$ 2.1

Quarterly Financial Informati_3

Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Quarterly Financial Information Disclosure [Abstract]
Net sales	$ 380,823	$ 339,700	$ 253,631	$ 302,794	$ 302,252	$ 321,169	$ 336,866	$ 314,707	$ 1,276,948	$ 1,274,994	$ 1,288,683
Gross profit	58,804	53,459	36,499	45,773	35,747	42,988	45,910	41,326	194,535	165,971	189,722
Net income	$ 24,100	$ 21,012	$ 12,347	$ 18,607	$ 10,535	$ 16,401	$ 17,782	$ 13,411	$ 76,067	$ 58,129	$ 78,150
Earnings per common share - basic (in usd per share)	$ 1.17	$ 1.02	$ 0.60	$ 0.89	$ 0.50	$ 0.78	$ 0.85	$ 0.64	$ 3.69	$ 2.78	$ 3.75
Earnings per common share - diluted (in usd per share)	$ 1.17	$ 1.02	$ 0.60	$ 0.89	$ 0.50	$ 0.78	$ 0.85	$ 0.64	$ 3.68	$ 2.77	$ 3.74