(

)

Plant Consolidations

Restructuring Costs

March 18, 2015,

the Company committed to move forward with a plan to cease operations at its Raritan, New Jersey, plant and consolidate operations into its Newburyport, Massachusetts, facility and other UFP facilities. The Company’s decision was in response to a continued decline in business at the Raritan facility and the Company’s purchase of the

137,000

-square-foot facility in Newburyport. The activities related to this consolidation are complete.

The Company also relocated all operations in its Haverhill, Massachusetts, and Byfield, Massachusetts, facilities and relocated certain operations in its Georgetown, Massachusetts, facility to Newburyport. The Haverhill and Byfield relocations were complete at

December 31, 2015,

and the partial Georgetown relocation was complete at

June 30, 2017.

The Company incurred approximately

$2.1

million in

one

-time expenses in connection with the Massachusetts consolidations. Included in this amount are approximately

$180,000

relating to employee severance payments and relocation costs, approximately

$1.6

million in moving expenses and expenses associated with vacating the Raritan, Haverhill, and Byfield properties, and approximately

$360,000

in lease termination costs. Total cash charges were approximately

$2.0

million.

The Company recorded the following restructuring costs associated with the Massachusetts consolidations for the

three

- and

nine

-month periods ended

September 30, 2017

and

2016

(in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
Restructuring Costs	2017		2016		2017		2016
Relocation	$	-	$	25	$	63	$	203
Total	$	-	$	25	$	63	$	203

Costs for the

three

- and

nine

- month periods ended

September 30, 2017

and

2016

were reclassified in the Condensed Consolidated Statement of Income as “Restructuring Costs” from Cost of Sales.