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SEGMENT REPORTING
 9 Months Ended
Sep. 26, 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.

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Three Months Ended September 26, 2020

(in thousands)

    

Retail

    

Industrial

    

Construction

    

  All Other  

    

  Corporate  

    

      Total      

Net sales to outside customers

​

$

700,522

 

$

282,124

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$

447,103

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$

56,700

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$

(222)

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$

1,486,227

Intersegment net sales

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45,416

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​

11,773

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​

17,909

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​

76,029

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(151,127)

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—

Segment operating profit

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62,181

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​

22,037

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​

16,513

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​

7,449

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(1,579)

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​

106,601

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Three Months Ended September 28, 2019

(in thousands)

    

Retail

    

Industrial

    

Construction

    

  All Other  

    

  Corporate  

    

      Total      

Net sales to outside customers

​

$

397,140

 

$

271,667

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$

445,505

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$

48,066

​

$

648

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$

1,163,026

Intersegment net sales

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32,400

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​

9,748

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​

16,057

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​

45,918

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(104,123)

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Segment operating profit

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​

14,297

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​

20,768

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​

21,406

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​

3,561

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​

10,435

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​

70,467

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Nine Months Ended September 26, 2020

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Retail

    

Industrial

    

Construction

    

  All Other  

    

  Corporate  

    

      Total      

Net sales to outside customers

​

$

1,661,873

 

$

763,046

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$

1,187,429

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$

148,503

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$

(561)

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$

3,760,290

Intersegment net sales

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109,378

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​

32,788

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​

49,685

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​

196,908

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(388,759)

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—

Segment operating profit

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​

122,082

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​

53,837

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​

50,544

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​

20,573

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​

10,555

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​

257,591

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Nine Months Ended September 28, 2019

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Retail

    

Industrial

    

Construction

    

  All Other  

    

  Corporate  

    

      Total      

Net sales to outside customers

​

$

1,212,330

 

$

837,671

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$

1,225,467

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$

142,845

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$

(344)

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$

3,417,969

Intersegment net sales

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101,203

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​

34,406

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​

42,393

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​

155,637

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(333,639)

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—

Segment operating profit

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​

47,597

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​

60,208

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​

56,263

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​

9,490

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​

19,592

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​

193,150

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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 September 26, 2020, and December 28, 2019 (in thousands):

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Retail

    

Industrial

    

Construction

    

All Other

    

Corporate

    

Total

Balance as of December 28, 2019

 

$

58,098

 

$

81,276

 

$

82,911

 

$

7,251

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$

—

 

$

229,536

2020 Acquisitions

 

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—

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6,549

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​

9,953

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—

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—

 

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16,502

2020 Purchase Accounting Adjustments

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​

202

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2

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—

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—

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204

Foreign Exchange, Net

 

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—

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—

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229

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(546)

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—

 

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(317)

Balance as of September 26, 2020

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$

58,300

 

$

87,827

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$

93,093

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$

6,705

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$

—

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$

245,925

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The following table presents total assets by segment as of September 26, 2020, and December 28, 2019.

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Total Assets by Segment

(in thousands)

September 26,

    

December 28,

    

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Segment Classification

2020

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2019

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% Change

Retail

$

631,238

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$

402,221

 

56.9

%

Industrial

 

389,806

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377,329

 

3.3

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Construction

 

525,596

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522,638

 

0.6

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All Other

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161,945

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​

136,990

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18.2

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Corporate

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642,035

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​

450,299

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42.6

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Total Assets

$

2,350,620

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$

1,889,477

 

24.4

%

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