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SEGMENT REPORTING

12 Months Ended

Dec. 26, 2020

SEGMENT REPORTING

M.SEGMENT REPORTING

ASC 280, Segment Reporting (“ASC 280”), defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Effective January 1, 2020, we re-organized around the markets we serve 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. We manage the operations of our 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. One customer, The Home Depot, accounted for approximately 24%of our total net sales in fiscal 2020 and 19% in 2019 and 2018.

The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Europe, and Australia operations and sales and buying offices in other parts of the world and our Ardellis segment, which represents our wholly owned fully licensed captive insurance company based in Bermuda. Our International and Ardellis segments do not meet the quantitative thresholds in order to be separately reported and accordingly, the International and Ardellis segments have been aggregated in the “All Other” segment for reporting purposes.

“Corporate” 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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2020

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All

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Retail

Industrial

Construction

Other

Corporate

Total

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Net sales to outside customers

​

$

2,167,122

​

$

1,072,117

​

$

1,695,684

​

$

217,094

​

$

1,981

​

$

5,153,998

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​

​

Intersegment net sales

​

142,839

​

45,217

​

68,294

​

283,689

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(540,039)

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—

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​

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Interest expense (income)

​

2

​

22

​

—

​

90

​

9,197

​

9,311

​

​

​

Amortization expense

​

1,482

​

4,159

​

2,152

​

877

​

46

​

8,716

​

​

​

Depreciation expense

​

11,675

​

15,163

​

12,123

​

1,619

​

23,384

​

63,964

​

​

​

Segment earnings before income taxes

​

155,364

​

83,430

​

69,092

​

38,333

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(5,236)

​

340,983

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Segment assets

​

510,464

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​

416,487

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​

510,972

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​

196,856

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​

770,112

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2,404,891

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​

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Capital expenditures

​

16,277

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​

21,141

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16,902

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​

2,258

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32,604

​

89,182

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2019

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All

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Retail

Industrial

Construction

Other

Corporate

Total

Net sales to outside customers

​

$

1,498,710

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$

1,085,635

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$

1,637,156

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$

193,785

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$

723

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$

4,416,009

Intersegment net sales

​

135,705

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45,010

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56,116

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200,426

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(437,257)

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—

Interest expense

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—

​

108

​

16

​

97

​

8,479

​

8,700

Amortization expense

​

1,380

​

3,034

​

1,164

​

747

​

—

​

6,325

Depreciation expense

​

11,041

​

14,340

​

11,465

​

1,532

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22,116

​

60,494

Segment earnings before income taxes

​

61,708

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82,913

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82,407

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22,025

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(8,379)

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240,674

Segment assets

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402,221

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377,329

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522,638

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136,990

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450,299

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1,889,477

Capital expenditures

​

15,502

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20,134

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16,097

​

2,150

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31,050

​

84,933

Note: Allocations of corporate expenses in 2019 were modified to align with the methodology used to allocate corporate expenses in the current year.

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2018

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All

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Retail

Industrial

Construction

Other

Corporate

Total

Net sales to outside customers

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$

1,512,477

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$

1,050,945

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$

1,705,016

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$

219,920

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$

822

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$

4,489,180

Intersegment net sales

​

125,310

​

39,806

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50,465

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226,053

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(441,634)

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—

Interest expense

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1

​

191

​

202

​

225

​

8,274

​

8,893

Amortization expense

​

1,038

​

3,055

​

1,443

​

857

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—

​

6,393

Depreciation expense

​

10,029

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13,026

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10,414

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1,391

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20,089

​

54,949

Segment earnings before income taxes

​

52,211

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59,403

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71,234

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18,031

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(3,026)

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197,853

Segment assets

​

401,012

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370,386

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512,670

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143,614

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219,866

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1,647,548

Capital expenditures

​

17,497

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22,724

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18,168

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2,427

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35,046

​

95,862

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Note: Allocations of corporate expenses in 2018 were modified to align with the methodology used to allocate corporate expenses in the current

Information regarding principal geographic areas was as follows (in thousands):

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2020

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2019

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2018

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Long-Lived

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Long-Lived

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Long-Lived

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Tangible

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Tangible

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Tangible

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Net Sales

Assets

Net Sales

Assets

Net Sales

Assets

United States

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$

5,022,014

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$

478,325

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$

4,308,618

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$

469,605

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$

4,382,356

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$

342,326

Foreign

​

131,984

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​

36,380

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​

107,391

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​

36,878

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​

106,824

​

​

34,312

Total

​

$

5,153,998

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$

514,705

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$

4,416,009

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$

506,483

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$

4,489,180

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$

376,638

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The following table presents, for the periods indicated, our disaggregated net sales (in thousands) by business unit for each segment and our percentage of value-added and commodity-based sales to total net sales by segment.

​	​	​	​	​	​	​	​	​	​
​	​	Year Ended
​	​	December 26,		​	December 28,		​	December 29,
​		2020			2019			2018
Retail	​	​	​	​	​	​	​	​	​
Deckorators	​	$	219,930	​	$	185,221	​	$	136,517
Prowood	​		1,215,201	​		786,720	​		845,994
Outdoor Essentials	​		299,684	​		227,767	​		227,799
UFP Edge	​		114,987	​		95,608	​		85,176
Dimensions	​		88,351	​		52,553	​		57,403
E-Commerce	​		3,716	​		1,688	​		1,210
Other	​		225,253	​		149,153	​		158,378
Total Retail	​	$	2,167,122	​	$	1,498,710	​	$	1,512,477
​	​	​	​	​	​	​	​	​	​
Industrial	​	​	​	​	​	​	​	​	​
North Industrial	​	$	385,132	​	$	376,515	​	$	351,345
Southeast Industrial	​	​	229,316	​	​	255,419	​	​	238,667
Southwest Industrial	​	​	238,643	​	​	241,774	​	​	237,671
West Industrial	​	​	206,022	​	​	197,686	​	​	209,049
Protective Packaging	​	​	13,004	​	​	14,241	​	​	14,213
Total Industrial	​	$	1,072,117	​	$	1,085,635	​	$	1,050,945
​	​	​	​	​	​	​	​	​	​
Construction	​	​	​	​	​	​	​	​	​
Factory Built	​	$	597,017	​	$	479,927	​	$	561,137
Site Built	​		725,899	​		708,767	​		713,729
Commercial	​	​	221,988	​	​	290,785	​	​	269,706
Concrete Forming	​		150,780	​		157,677	​		160,444
Total Construction	​	$	1,695,684	​	$	1,637,156	​	$	1,705,016
​	​	​	​	​	​	​	​	​	​
All Other	​	$	217,094	​	$	193,785	​	$	219,920
​	​	​	​	​	​	​	​	​	​
Corporate	​	$	1,981	​	$	723	​	$	822
​	​	​	​	​	​	​	​	​	​
Total Net Sales	​	$	5,153,998	​	$	4,416,009	​	$	4,489,180
​	​	​	​	​	​	​	​	​	​
Value-Added	​	​	​	​	​	​	​	​	​
Retail	​	​	53.8%	​	​	57.8%	​	​	54.0%
Industrial	​	​	64.7%	​	​	66.2%	​	​	60.5%
Construction	​	​	76.3%	​	​	81.4%	​	​	76.5%
All Other and Corporate	​	​	75.6%	​	​	75.8%	​	​	65.9%
Total	​	​	64.3%	​	​	69.3%	​	​	64.6%
​	​	​	​	​	​	​	​	​	​
Commodity-Based	​	​	​	​	​	​	​	​	​
Retail	​	​	46.2%	​	​	42.2%	​	​	46.0%
Industrial	​	​	35.3%	​	​	33.8%	​	​	39.5%
Construction	​	​	23.7%	​	​	18.6%	​	​	23.5%
All Other and Corporate	​	​	24.4%	​	​	24.2%	​	​	34.1%
Total	​	​	35.7%	​	​	30.7%	​	​	35.4%

​

X

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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-Section 50
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

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