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SEGMENT REPORTING
 6 Months Ended
Jul. 01, 2023
SEGMENT REPORTING  
SEGMENT REPORTING

G.       SEGMENT REPORTING

We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of UFP Retail Solutions, UFP Packaging (formerly known as UFP Industrial) and UFP Construction and align with the end markets we serve. This segment structure allows for a specialized and consistent sales approach among Company operations, 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, Packaging, and Construction segments. In the case of locations that serve multiple segments, results are allocated and accounted for by segment.

The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Europe, India, 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 consist of net sales to external customers initiated by UFP Purchasing and UFP Transportation and over (under) allocated costs. The operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns, leases and operates transportation equipment, are also included in the Corporate column. Inter-company lease and service charges are assessed to our operating segments for the use of these assets and services at fair market value rates. Total assets in 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., UFP Transportation, Inc., UFP Purchasing, Inc., and UFP RMS, LLC. The tables below are presented in thousands:

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Three Months Ended July 1, 2023

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Retail

    

Packaging

    

Construction

    

  All Other  

    

  Corporate  

    

      Total      

Net sales to outside customers

​

$

919,998

 

$

488,100

​

$

550,464

​

$

86,224

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$

(868)

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$

2,043,918

Intersegment net sales

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198,518

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​

20,976

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​

23,554

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​

75,480

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(318,528)

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—

Earnings from operations

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​

60,180

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​

56,864

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​

61,959

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​

6,817

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​

7,677

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​

193,497

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Three Months Ended June 25, 2022

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Retail

    

Packaging

    

Construction

    

  All Other  

    

  Corporate  

    

      Total      

Net sales to outside customers

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$

1,121,440

 

$

676,333

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$

975,376

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$

124,416

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$

3,309

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$

2,900,874

Intersegment net sales

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67,612

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​

21,487

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​

31,866

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​

125,893

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(246,858)

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—

Earnings from operations

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​

24,527

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​

94,210

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​

132,832

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​

22,748

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​

11,249

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​

285,566

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Six Months Ended July 1, 2023

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Retail

    

Packaging

    

Construction

    

  All Other  

    

  Corporate  

    

      Total      

Net sales to outside customers

​

$

1,669,575

 

$

974,661

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$

1,066,057

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$

153,736

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$

2,365

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$

3,866,394

Intersegment net sales

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421,843

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​

41,026

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​

49,390

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​

152,967

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(665,226)

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—

Earnings from operations

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​

101,236

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​

111,596

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​

116,207

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​

10,851

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​

15,315

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​

355,205

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Six Months Ended June 25, 2022

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Retail

    

Packaging

    

Construction

    

  All Other  

    

  Corporate  

    

      Total      

Net sales to outside customers

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$

2,114,672

 

$

1,287,702

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$

1,761,847

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$

219,983

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$

5,983

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$

5,390,187

Intersegment net sales

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133,560

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​

43,660

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​

57,218

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​

235,665

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(470,103)

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—

Earnings from operations

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​

95,924

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​

176,601

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​

211,650

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​

37,563

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​

22,853

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​

544,591

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The following table presents goodwill by segment as of July 1, 2023, and December 31, 2022 (in thousands):

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Retail

    

Packaging

    

Construction

    

All Other

    

Corporate

    

Total

Balance as of December 31, 2022

 

$

84,640

 

$

148,909

 

$

87,670

 

$

16,101

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$

—

 

$

337,320

2023 Purchase Accounting Adjustments

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(979)

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(67)

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—

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—

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—

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(1,046)

Foreign Exchange, Net

 

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—

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—

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126

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​

95

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—

 

​

221

Balance as of July 1, 2023

​

$

83,661

 

$

148,842

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$

87,796

​

$

16,196

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$

—

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$

336,495

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The following table presents total assets by segment as of July 1, 2023, and December 31, 2022 (in thousands).

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Total Assets by Segment

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July 1,

    

December 31,

    

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Segment Classification

2023

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2022

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% Change

Retail

$

992,463

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$

889,417

 

11.6

%

Packaging

 

838,495

​

 

885,878

 

(5.3)

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Construction

 

698,632

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712,837

 

(2.0)

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All Other

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295,865

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​

308,688

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(4.2)

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Corporate

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1,018,488

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​

875,253

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16.4

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Total Assets

$

3,843,943

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$

3,672,073

 

4.7

%

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