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SEGMENT REPORTING
 12 Months Ended
Dec. 28, 2024
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 (“CODM”) in deciding how to allocate resources and in assessing performance. Our CODM is the chief executive officer, as he has the ultimate decision-making authority related to assessing the Company’s performance and allocating resources. The CODM assesses performance for our segments and decides how to allocate resources based on net sales, cost of goods sold, earnings from operations and net earnings. These metrics are also reported on the Consolidated Statement of Earnings and Comprehensive Income. The measure of segment assets is reported on the Consolidated Balance Sheet as total consolidated assets. The CODM uses earnings from operations and net earnings to evaluate income generated from segment assets (return on investment) in determining wage increase allocations and bonus pools, and in deciding whether to reinvest profits into the business, such as for acquisitions or to pay dividends.

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 that serve multiple segments, results are allocated and accounted for by segment. Two customers, The Home Depot and Lowes, accounted for approximately 17% and 11%, respectively, of our total net sales in fiscal 2024, 17% and 12%, respectively, of our total net sales in fiscal 2023 and 15% and 11%, respectively, in 2022.

The exception to this market-centered reporting and management structure is our International segment, which comprises our packaging operations in Mexico, Canada, Spain, India, United Arab Emirates and Australia 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, and 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. Real estate activities are conducted by the real estate company on behalf of the segments, and capital expenditures associated with real estate are allocated to the segments. The tables below are presented in thousands:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

​

​

​

​

​

​

​

​

​

​

All

​

​

​

​

​

​

​

    

Retail

    

Packaging

    

Construction

    

Other

    

Corporate

    

Total

Net sales to outside customers

​

$

2,597,994

​

$

1,636,563

​

$

2,113,844

​

$

298,190

​

$

5,718

​

$

6,652,309

Intersegment net sales

​

 

245,628

​

 

92,801

​

 

76,401

​

 

297,512

​

 

(712,342)

​

 

—

Cost of goods sold

​

 

2,209,195

​

 

1,335,304

​

 

1,675,346

​

 

240,518

​

 

(34,796)

​

 

5,425,567

Gross Profit

​

 

388,799

​

​

301,259

​

​

438,498

​

​

57,672

​

​

40,514

​

​

1,226,742

Selling, general, administrative expenses

​

 

209,592

​

​

191,757

​

​

262,517

​

​

39,940

​

​

31,240

​

 

735,046

Net loss (gain) on disposition and impairment of assets

​

​

3,067

​

​

6,545

​

​

673

​

​

28

​

​

(4,156)

​

​

6,157

Other (gains) losses, net

​

 

(2,964)

​

​

—

​

​

(376)

​

​

(3,572)

​

​

209

​

 

(6,703)

Earnings from operations

​

 

179,104

​

​

102,957

​

​

175,684

​

​

21,276

​

​

13,221

​

​

492,242

Interest expense

​

 

116

​

​

14

​

​

50

​

​

(3,242)

​

​

15,771

​

 

12,709

Interest and investment income

​

​

(673)

​

​

(26)

​

​

(33)

​

​

(6,114)

​

​

(53,687)

​

​

(60,533)

Equity in loss of investee

​

​

—

​

​

(89)

​

​

—

​

​

—

​

​

—

​

​

(89)

Interest and other

​

​

(557)

​

​

(101)

​

​

17

​

​

(9,356)

​

​

(37,916)

​

​

(47,913)

Earnings before income taxes

​

​

179,661

​

​

103,058

​

​

175,667

​

​

30,632

​

​

51,137

​

​

540,155

Income taxes

​

​

40,534

​

​

23,023

​

​

39,488

​

​

5,793

​

​

12,584

​

​

121,422

Net earnings

​

$

139,127

​

$

80,035

​

$

136,179

​

$

24,839

​

$

38,553

​

$

418,733

Other significant items:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortization expense

​

$

3,992

​

$

8,840

​

$

2,810

​

$

6,124

​

$

1,755

​

$

23,521

Depreciation expense

​

​

28,877

​

​

34,603

​

​

23,124

​

​

3,338

​

​

34,699

​

​

124,641

Segment assets

​

​

816,256

​

​

799,311

​

​

621,370

​

​

342,529

​

​

1,571,472

​

​

4,150,938

Capital expenditures

​

​

79,909

​

​

57,436

​

​

64,743

​

​

2,716

​

​

27,470

​

​

232,274

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2023

​

​

​

​

​

​

​

​

​

​

​

All

​

​

​

​

​

​

​

    

Retail

    

Packaging

    

Construction

    

Other

    

Corporate

    

Total

Net sales to outside customers

​

$

2,956,007

​

$

1,838,200

​

$

2,161,059

​

$

259,392

​

$

3,726

​

$

7,218,384

Intersegment net sales

​

 

565,325

​

 

83,549

​

 

96,729

​

 

268,210

​

 

(1,013,813)

​

 

—

Cost of goods sold

​

​

2,566,572

​

​

1,422,940

​

 

1,637,329

​

​

182,047

​

​

(9,442)

​

​

5,799,446

Gross Profit

​

​

389,435

​

​

415,260

​

​

523,730

​

​

77,345

​

​

13,168

​

​

1,418,938

Selling, general, administrative expenses

​

​

213,288

​

​

219,323

​

​

279,107

​

​

51,548

​

​

3,367

​

​

766,633

Net loss (gain) on disposition and impairment of assets

​

​

800

​

​

8

​

​

9

​

​

(166)

​

​

(911)

​

​

(260)

Other losses, net

​

​

3,180

​

​

—

​

​

1,268

​

​

1,425

​

​

158

​

​

6,031

Earnings from operations

​

​

172,167

​

​

195,929

​

​

243,346

​

​

24,538

​

​

10,554

​

​

646,534

Interest expense

​

​

111

​

 

7

​

 

—

​

 

(3,020)

​

 

15,744

​

 

12,842

Interest and investment income

​

​

(168)

​

​

(6)

​

​

(10)

​

​

(5,747)

​

​

(33,985)

​

​

(39,916)

Equity in loss of investee

​

​

—

​

​

2,367

​

​

—

​

​

—

​

​

—

​

​

2,367

Interest and other

​

​

(57)

​

​

2,368

​

​

(10)

​

​

(8,767)

​

​

(18,241)

​

​

(24,707)

Earnings before income taxes

​

​

172,224

​

​

193,561

​

​

243,356

​

​

33,305

​

​

28,795

​

​

671,241

Income taxes

​

​

40,304

​

​

45,292

​

​

56,753

​

​

7,723

​

​

6,712

​

​

156,784

Net earnings

​

$

131,920

​

$

148,269

​

$

186,603

​

$

25,582

​

$

22,083

​

$

514,457

Other significant items:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortization expense

​

$

4,566

​

$

8,849

​

$

2,904

​

$

3,488

​

$

1,520

​

$

21,327

Depreciation expense

​

 

25,483

​

​

32,996

​

​

19,546

​

​

2,454

​

​

30,084

​

 

110,563

Segment assets

​

 

828,798

​

​

798,623

​

​

621,762

​

​

316,481

​

​

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

​

$

3,771,231

​

$

2,394,681

​

$

3,143,868

​

$

311,019

​

$

5,940

​

$

9,626,739

Intersegment net sales

​

 

392,740

​

 

78,409

​

 

110,523

​

 

421,406

​

 

(1,003,078)

​

 

—

Cost of goods sold

​

​

3,381,555

​

​

1,808,449

​

​

2,417,212

​

​

224,864

​

​

5,198

​

​

7,837,278

Gross Profit

​

​

389,676

​

​

586,232

​

​

726,656

​

​

86,155

​

​

742

​

​

1,789,461

Selling, general, administrative expenses

​

​

200,645

​

​

250,858

​

​

328,125

​

​

59,483

​

​

(7,032)

​

​

832,079

Net loss (gain) on disposition and impairment of assets

​

​

785

​

​

131

​

​

1,349

​

​

4,309

​

​

(1,028)

​

​

5,546

Other losses (gains), net

​

​

1,524

​

​

(2)

​

​

(252)

​

​

128

​

​

254

​

​

1,652

Earnings from operations

​

​

186,722

​

​

335,245

​

​

397,434

​

​

22,235

​

​

8,548

​

​

950,184

Interest expense

​

 

177

​

 

(2)

​

 

—

​

 

(1,310)

​

 

15,045

​

 

13,910

Interest and investment income

​

​

(16)

​

​

(23)

​

​

(12)

​

​

3,128

​

​

(3,802)

​

​

(725)

Equity in loss of investee

​

​

—

​

​

2,183

​

​

—

​

​

—

​

​

—

​

​

2,183

Interest and other

​

​

161

​

​

2,158

​

​

(12)

​

​

1,818

​

​

11,243

​

​

15,368

Earnings before income taxes

​

 

186,561

​

​

333,087

​

​

397,446

​

​

20,417

​

​

(2,695)

​

​

934,816

Income taxes

​

​

46,876

​

​

81,900

​

​

97,725

​

​

4,013

​

​

(662)

​

​

229,852

Net earnings

​

$

139,685

​

$

251,187

​

$

299,721

​

$

16,404

​

$

(2,033)

​

$

704,964

Other significant items:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Amortization expense

​

$

4,131

​

$

6,925

​

$

3,358

​

$

4,571

​

$

514

​

$

19,499

Depreciation expense

​

 

20,980

​

 

28,191

​

 

15,364

​

 

1,910

​

 

27,618

​

 

94,063

Segment assets

​

 

949,008

​

​

885,878

​

​

712,837

​

​

249,097

​

​

875,253

​

 

3,672,073

Capital expenditures

​

 

55,806

​

​

55,129

​

​

54,167

​

​

3,968

​

​

5,054

​

 

174,124

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

​

2023

​

2022

​

​

​

​

​

Long-Lived

​

​

​

​

Long-Lived

​

​

​

​

Long-Lived

​

​

​

​

​

Tangible

​

​

​

​

Tangible

​

​

​

​

Tangible

​

    

Net Sales

    

Assets

    

Net Sales

    

Assets

    

Net Sales

    

Assets

United States

​

$

6,359,540

​

$

906,549

​

$

6,935,431

​

$

779,748

​

$

9,254,676

​

$

770,921

Foreign

​

 

292,769

​

​

197,324

​

​

282,953

​

​

188,042

​

​

372,063

​

​

126,840

Total

​

$

6,652,309

​

$

1,103,873

​

$

7,218,384

​

$

967,790

​

$

9,626,739

​

$

897,761

​

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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

    

2023

    

2022

Retail

​

​

​

​

​

​

​

​

​

Deckorators

​

$

297,217

​

$

309,419

​

$

326,011

ProWood

​

 

2,146,247

​

 

2,494,362

​

 

3,152,950

UFP Edge

​

 

146,379

​

 

151,095

​

 

288,782

Other

​

 

8,151

​

 

1,131

​

 

3,488

Total Retail

​

$

2,597,994

​

$

2,956,007

​

$

3,771,231

​

​

​

​

​

​

​

​

​

​

Packaging (1)

​

​

​

​

​

​

​

​

​

Structural Packaging

​

$

1,045,149

​

$

1,225,204

​

$

1,716,021

PalletOne

​

​

517,906

​

​

530,642

​

​

628,969

Protective Packaging

​

​

73,508

​

​

82,354

​

​

49,691

Total Packaging

​

$

1,636,563

​

$

1,838,200

​

$

2,394,681

​

​

​

​

​

​

​

​

​

​

Construction

​

​

​

​

​

​

​

​

​

Factory Built

​

$

815,577

​

$

718,773

​

$

1,181,837

Site Built

​

 

875,087

​

 

977,129

​

 

1,361,607

Commercial

​

​

248,777

​

​

265,079

​

​

336,298

Concrete Forming

​

 

174,403

​

 

200,078

​

 

264,126

Total Construction

​

$

2,113,844

​

$

2,161,059

​

$

3,143,868

​

​

​

​

​

​

​

​

​

​

All Other

​

$

298,190

​

$

259,392

​

$

311,019

​

​

​

​

​

​

​

​

​

​

Corporate

​

$

5,718

​

$

3,726

​

$

5,940

​

​

​

​

​

​

​

​

​

​

Total Net Sales

​

$

6,652,309

​

$

7,218,384

​

$

9,626,739

(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 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.

​

​

​

​

​

​

​

​

​

​

​

​

​

2024

    

2023

    

2022

Value-Added

​

​

​

​

​

​

​

​

​

Retail

​

​

52.8%

​

​

51.1%

​

​

44.9%

Packaging

​

​

75.5%

​

​

76.9%

​

​

72.0%

Construction

​

​

82.0%

​

​

83.2%

​

​

77.2%

All Other

​

​

76.6%

​

​

80.0%

​

​

76.3%

Corporate

​

​

58.8%

​

​

27.5%

​

​

44.3%

Total

​

​

68.6%

​

​

68.1%

​

​

63.4%

​

​

​

​

​

​

​

​

​

​

Commodity-Based

​

​

​

​

​

​

​

​

​

Retail

​

​

47.2%

​

​

48.9%

​

​

55.1%

Packaging

​

​

24.5%

​

​

23.1%

​

​

28.0%

Construction

​

​

18.0%

​

​

16.8%

​

​

22.8%

All Other

​

​

23.4%

​

​

20.0%

​

​

23.7%

Corporate

​

​

41.2%

​

​

72.5%

​

​

55.7%

Total

​

​

31.4%

​

​

31.9%

​

​

36.6%

​