XML 28 R15.htm IDEA: XBRL DOCUMENT

SEGMENT REPORTING

6 Months Ended

Jun. 27, 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 a 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. Total assets of the Corporate column include unallocated cash and cash equivalents, certain prepaid assets, certain property, equipment and other assets pertaining to the centralized activities of Corporate, UFP Real Estate, Inc., and UFP Transportation Ltd.

During the second quarter of 2020, management retrospectively reallocated certain inter-company charges from Corporate to their respective segments to better assess segment profitability. Prior year information in these tables has been restated to reflect these changes.


		Three Months Ended June 27, 2020
(in thousands)		Retail			Industrial			Construction			All Other			Corporate			Total
Net sales to outside customers		$	609,190		$	224,379		$	359,170		$	49,411		$	(149)		$	1,242,001
Intersegment net sales			34,104			9,795			16,353			67,712			(127,964)			—
Segment operating profit			45,775			15,420			19,542			8,633			2,989			92,359


		Three Months Ended June 29, 2019
(in thousands)		Retail			Industrial			Construction			All Other			Corporate			Total
Net sales to outside customers		$	482,090		$	291,245		$	414,825		$	52,669		$	(1,012)		$	1,239,817
Intersegment net sales			39,232			13,596			14,505			56,590			(123,923)			—
Segment operating profit			22,430			20,709			20,268			3,735			7,095			74,237


		Six Months Ended June 27, 2020
		Retail			Industrial			Construction			All Other			Corporate			Total
Net sales to outside customers		$	961,351		$	480,922		$	740,325		$	91,804		$	(339)		$	2,274,063
Intersegment net sales			63,962			21,015			31,776			120,879			(237,632)			—
Segment operating profit			59,901			31,800			34,031			13,124			12,134			150,990


		Six Months Ended June 29, 2019
		Retail			Industrial			Construction			All Other			Corporate			Total
Net sales to outside customers		$	815,190		$	566,004		$	779,962		$	94,779		$	(992)		$	2,254,943
Intersegment net sales			68,803			24,658			26,336			109,719			(229,516)			—
Segment operating profit			33,300			39,440			34,857			5,929			9,157			122,683

Identifiable 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 June 27, 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			—			—			18,289			—			—			18,289
2020 Purchase Accounting Adjustments			202			22			—			—			—			224
Foreign Exchange, Net			—			—			(188)			(379)			—			(567)
Balance as of June 27, 2020		$	58,300		$	81,298		$	101,012		$	6,872		$	—		$	247,482

The following table presents total assets by segment as of June 27, 2020, and December 28, 2019.


	Total Assets by Segment
(in thousands)	June 27,			December 28,
Segment Classification	2020			2019			% Change
Retail	$	583,480		$	402,221		45.1	%
Industrial		337,027			377,329		(10.7)
Construction		512,111			522,638		(2.0)
All Other		145,205			136,990		6.0
Corporate		480,785			450,299		6.8
Total Assets	$	2,058,608		$	1,889,477		9.0	%

Note: During 2020, certain assets were reclassified to a different segment. Prior year information in this table has been restated to reflect these changes.