PLY GEM HOLDINGS INC - 10-K filing on 2017-03-10

ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES

12 Months Ended

Dec. 31, 2016

ACCRUED EXPENSES AND OTHER LONG-TERM LIABILITIES

Accrued expenses consist of the following at December 31, 2016 and December 31, 2015:



(Amounts in thousands)	December 31, 2016		December 31, 2015
Insurance	$	8,297	$	9,347
Employee compensation and benefits	27,749		20,381
Sales and marketing	59,655		50,405
Product warranty	19,718		16,619
Accrued freight	2,146		1,445
Accrued interest	17,977		17,808
Accrued environmental liability	434		430
Accrued pension	1,753		647
Accrued sales returns and discounts	1,199		3,368
Accrued taxes	4,966		5,575
Litigation accrual	2,575		700
Other	22,546		26,237
	$	169,015	$	152,962

Other long-term liabilities consist of the following at December 31, 2016 and December 31, 2015:



(Amounts in thousands)	December 31, 2016		December 31, 2015
Insurance	$	605	$	1,237
Pension liabilities	13,907		15,033
Multi-employer pension withdrawal liability	808		960
Product warranty	57,575		59,943
Long-term product claim liability	138		138
Long-term environmental liability	1,158		1,211
Liabilities for tax uncertainties	3,925		2,866
Litigation accrual	731		829
Other	7,548		8,676
	$	86,395	$	90,893

Long-term incentive plan

The Company maintains a long-term incentive plan (“LTIP”) for certain employees which was implemented to retain and incentivize employees through the downturn in the housing market. During the years ended December 31, 2016 and December 31, 2015, the Company recognized a net LTIP expense of $7.3 million and $3.9 million, respectively, which has been recorded within selling, general, and administrative expenses in the consolidated statement of operations and comprehensive income (loss). The LTIP liability is $10.0 million and $5.9 million as of December 31, 2016 and December 31, 2015, respectively, of which $6.3 million and $3.1 million has been recorded within other current liabilities and $3.7 million and $2.8 million in other long-term liabilities in the consolidated balance sheets as of December 31, 2016 and December 31, 2015, respectively.

Other liabilities

During the years ended December 31, 2016, 2015 and 2014, the Company made approximately $0.5 million, $1.6 million, and $5.0 million in cash payments for restructuring and integration efforts, respectively. These payments were for restructuring and integration programs implemented in Western Canada and general back office centralization efforts incurred as well as product simplification costs incurred for the entire Windows and Doors segment.