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SEGMENT REPORTING

3 Months Ended

Mar. 28, 2020

SEGMENT REPORTING

SEGMENT REPORTING

G. SEGMENT REPORTING

The Company operates manufacturing, treating and distribution facilities internationally, but primarily in the United States. Effective January 1, 2020, the Company re-organized around the markets it serves rather than geography. The prior periods have been recast to reflect the new segment structure. The business segments align with the following markets: UFP Retail Solutions, UFP Construction and UFP Industrial. This change allows for a more specialized and consistent sales approach among Company operations, more efficient use of resources and capital, and quicker introduction of new

products and services. The Company manages the operations of its individual locations primarily through the market-centered reporting structure under which each location is included in a business unit and business units are included in our Retail, Industrial, and Construction segments. The exception to this market-centered reporting and management structure is the Company’s International segment, which comprises our Mexico, Canada, and Australia operations and sales and buying offices in other parts of the world.

Our International segment and Ardellis (our insurance captive) have been included in the “All Other” column of the table below.

The “Corporate” column includes purchasing, transportation and administrative functions that serve our operating segments. Operating results of Corporate primarily consists of over (under) allocated costs. The operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns and leases transportation equipment, are also included in the Corporate column. An inter-company lease charge is assessed to our operating segments for the use of these assets at fair market value rates.


		Three Months Ended March 28, 2020
(in thousands)		Retail			Industrial			Construction			All Other			Corporate			Total
Net sales to outside customers		$	352,161		$	256,543		$	381,155		$	42,392		$	(189)		$	1,032,062
Intersegment net sales			29,858			11,220			15,423			53,167			(109,668)			—
Segment operating profit			15,512			18,074			17,135			4,739			3,172			58,632


		Three Months Ended March 30, 2019
(in thousands)		Retail			Industrial			Construction			All Other			Corporate			Total
Net sales to outside customers		$	333,100		$	274,759		$	365,137		$	42,110		$	19		$	1,015,125
Intersegment net sales			29,571			11,062			11,831			53,129			(105,593)			—
Segment operating profit			11,031			18,823			15,267			2,048			1,277			48,446

Intangibles have been transferred and goodwill was re-allocated, based on their relative fair values, to our new segments and reporting units. The following table presents goodwill by segment as of March 28, 2020, and December 28, 2019 (in thousands):


		Retail			Industrial			Construction			All Other			Corporate			Total
Balance as of December 28, 2019		$	58,098		$	81,276		$	82,911		$	7,251		$	—		$	229,536
2020 Acquisitions			—			—			18,219			—			—			18,219
Foreign Exchange, Net			—			—			—			(1,296)			—			(1,296)
Balance as of March 28, 2020		$	58,098		$	81,276		$	101,130		$	5,955		$	—		$	246,459

The following table presents total assets by segment as of March 28, 2020, and December 28, 2019.


	Total Assets by Segment
(in thousands)	March 28,			December 28,
Segment Classification	2020			2019			% Change
Retail	$	521,977		$	436,397		19.6	%
Industrial		363,508			410,383		(11.4)
Construction		544,826			583,107		(6.6)
All Other		127,406			145,418		(12.4)
Corporate		325,265			314,172		3.5
Total Assets	$	1,882,982		$	1,889,477		(0.3)	%