XML 46 R23.htm IDEA: XBRL DOCUMENT v3.24.0.1

SEGMENT REPORTING

12 Months Ended

Dec. 30, 2023

SEGMENT REPORTING

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. Our business segments consist of UFP Retail Solutions, UFP Packaging 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 which serve multiple segments, results are allocated and accounted for by segment. Two customers, The Home Depot and Lowes, accounted for approximately 17% and 12%, respectively, of our total net sales in fiscal 2023, 15% and 11%, respectively, of our total net sales in fiscal 2022 and 16% and 10%, respectively, in 2021.

The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Europe, Asia, 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, corporate ventures, 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 Ltd, UFP Purchasing, and UFP RMS, LLC. The tables below are presented in thousands:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2023

​

​

​

​

​

​

​

​

​

​

​

All

​

​

​

​

​

​

​

Retail

Packaging

Construction

Other

Corporate

Total

Net sales to outside customers

​

$

2,886,515

​

$

1,838,200

​

$

2,161,059

​

$

328,884

​

$

3,726

​

$

7,218,384

Intersegment net sales

​

565,325

​

83,549

​

96,729

​

268,210

​

(1,013,813)

​

—

Interest expense(1)

​

111

​

7

​

—

​

(3,020)

​

15,744

​

12,842

Amortization expense

​

4,566

​

​

8,849

​

​

2,904

​

​

3,488

​

​

1,520

​

21,327

Depreciation expense

​

23,943

​

​

32,996

​

​

19,546

​

​

3,994

​

​

30,084

​

110,563

Segment earnings before income taxes

​

167,955

​

193,563

​

243,357

​

37,573

​

28,793

​

671,241

Segment assets

​

781,005

​

​

798,623

​

​

621,762

​

​

364,274

​

​

1,452,133

​

4,017,797

Capital expenditures

​

52,756

​

​

52,694

​

​

56,793

​

​

1,432

​

​

16,707

​

180,382

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2022

​

​

​

​

​

​

​

​

​

​

​

All

​

​

​

​

​

​

​

Retail

Packaging

Construction

Other

Corporate

Total

Net sales to outside customers

​

$

3,650,639

​

$

2,394,681

​

$

3,143,868

​

$

431,611

​

$

5,940

​

$

9,626,739

Intersegment net sales

​

392,740

​

78,409

​

110,523

​

421,406

​

(1,003,078)

​

—

Interest expense(1)

​

177

​

(2)

​

—

​

(1,310)

​

15,045

​

13,910

Amortization expense

​

4,131

​

6,925

​

3,358

​

4,571

​

514

​

19,499

Depreciation expense

​

19,898

​

28,191

​

15,364

​

2,992

​

27,618

​

94,063

Segment earnings before income taxes

​

150,165

​

333,087

​

397,446

​

56,813

​

(2,695)

​

934,816

Segment assets

​

889,417

​

​

885,878

​

​

712,837

​

​

308,688

​

​

875,253

​

3,672,073

Capital expenditures

​

55,806

​

​

55,129

​

​

54,167

​

​

3,968

​

​

5,054

​

174,124

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2021

​

​

​

​

​

​

​

​

​

​

​

All

​

​

​

​

​

​

​

Retail

Packaging

Construction

Other

Corporate

Total

Net sales to outside customers

​

$

3,418,337

​

$

2,148,142

​

$

2,698,434

​

$

362,473

​

$

8,748

​

$

8,636,134

Intersegment net sales

​

214,400

​

85,954

​

82,026

​

455,874

​

(838,254)

​

—

Interest expense(1)

​

98

​

12

​

1

​

184

​

13,519

​

13,814

Amortization expense

​

2,780

​

6,093

​

3,525

​

1,336

​

214

​

13,948

Depreciation expense

​

16,955

​

26,219

​

13,151

​

2,094

​

25,765

​

84,184

Segment earnings before income taxes

​

124,790

​

264,958

​

264,238

​

80,905

​

(8,555)

​

726,336

Segment assets

​

844,189

​

​

741,672

​

​

736,157

​

​

343,363

​

​

579,890

​

3,245,271

Capital expenditures

​

40,408

​

​

42,652

​

​

22,344

​

​

5,140

​

​

40,622

​

151,166

⁽¹⁾ Interest expense includes intercompany interest between segments.

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2023

​

2022

​

2021

​

​

​

​

​

Long-Lived

​

​

​

​

Long-Lived

​

​

​

​

Long-Lived

​

​

​

​

​

Tangible

​

​

​

​

Tangible

​

​

​

​

Tangible

​

Net Sales

Assets

Net Sales

Assets

Net Sales

Assets

United States

​

$

6,935,431

​

$

779,748

​

$

9,254,676

​

$

770,921

​

$

8,395,737

​

$

679,757

Foreign

​

282,953

​

​

188,042

​

​

372,063

​

​

126,840

​

​

240,397

​

​

54,873

Total

​

$

7,218,384

​

$

967,790

​

$

9,626,739

​

$

897,761

​

$

8,636,134

​

$

734,630

​

The following table presents, for the periods indicated, our disaggregated net sales (in thousands) by business unit for each segment.

​	​	​	​	​	​	​	​	​	​
​		2023			2022			2021
Retail	​	​	​	​	​	​	​	​	​
Deckorators	​	$	309,419	​	$	326,011	​	$	248,765
ProWood	​		2,494,362	​		3,152,950	​		3,013,620
UFP Edge	​		81,603	​		168,190	​		148,927
Other	​		1,131	​		3,488	​		7,025
Total Retail	​	$	2,886,515	​	$	3,650,639	​	$	3,418,337
​	​	​	​	​	​	​	​	​	​
Packaging(1)	​	​	​	​	​	​	​	​	​
Structural Packaging	​	$	1,225,204	​	$	1,716,021	​	$	1,554,857
PalletOne	​	​	530,642	​	​	628,969	​	​	574,466
Protective Packaging	​	​	82,354	​	​	49,691	​	​	18,819
Total Packaging	​	$	1,838,200	​	$	2,394,681	​	$	2,148,142
​	​	​	​	​	​	​	​	​	​
Construction	​	​	​	​	​	​	​	​	​
Factory Built	​	$	718,773	​	$	1,181,837	​	$	1,098,905
Site Built	​		977,129	​		1,361,607	​		1,190,393
Commercial	​	​	265,079	​	​	336,298	​	​	259,360
Concrete Forming	​		200,078	​		264,126	​		149,776
Total Construction	​	$	2,161,059	​	$	3,143,868	​	$	2,698,434
​	​	​	​	​	​	​	​	​	​
All Other	​	$	328,884	​	$	431,611	​	$	362,473
​	​	​	​	​	​	​	​	​	​
Corporate	​	$	3,726	​	$	5,940	​	$	8,748
​	​	​	​	​	​	​	​	​	​
Total Net Sales	​	$	7,218,384	​	$	9,626,739	​	$	8,636,134

(1) Effective January 1, 2023, the Packaging segment established new business units as follows: Structural Packaging, PalletOne, and Protective Packaging Solutions. This change resulted in the transfer of net sales from the these geographic business units to Structural Packaging, PalletOne and Protective Packaging in 2023. Product codes have been transferred within these three business units during 2023, and prior year figures have been updated to reflect the change for comparability purposes.

The following table presents, for the periods indicated, our percentage of value-added and commodity-based sales to total net sales by segment.

​

​	​	​	​	​	​	​	​	​	​
​	​	2023			2022			2021
Value-Added	​	​	​	​	​	​	​	​	​
Retail	​	​	50.5%	​	​	44.9%	​	​	43.2%
Packaging	​	​	77.0%	​	​	72.0%	​	​	67.7%
Construction	​	​	83.2%	​	​	77.2%	​	​	73.0%
All Other	​	​	83.8%	​	​	76.3%	​	​	74.7%
Corporate	​	​	27.5%	​	​	44.3%	​	​	67.9%
Total	​	​	68.4%	​	​	63.4%	​	​	59.7%
​	​	​	​	​	​	​	​	​	​
Commodity-Based	​	​	​	​	​	​	​	​	​
Retail	​	​	49.5%	​	​	55.1%	​	​	56.8%
Packaging	​	​	23.0%	​	​	28.0%	​	​	32.3%
Construction	​	​	16.8%	​	​	22.8%	​	​	27.0%
All Other	​	​	16.2%	​	​	23.7%	​	​	25.3%
Corporate	​	​	72.5%	​	​	55.7%	​	​	32.1%
Total	​	​	31.6%	​	​	36.6%	​	​	40.3%

​

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

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
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Name:	us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration