(

)

Plant Consolidation

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 purchase of the 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 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 has 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.

July 16, 2014,

the Company committed to move forward with a plan to cease operations at its Costa Mesa, California, plant and consolidate operations into its Rancho Dominguez, California, facility and other UFP facilities. The Company’s decision was in response to the

December 31, 2014,

expiration of the lease on the Costa Mesa facility as well as the close proximity of the

two

properties. The California consolidation was complete at

December 31, 2015.

The Company has recorded the following restructuring costs associated with the consolidations discussed above for the years ended

December 31, 2017,

2016

and

2015

(in thousands):

	2017		2016		2015
Restructuring Costs	MA		MA		MA		CA		Total

Employee severance	$	-	$	-	$	178	$	18	$	196
Relocation		63		420		1,138		66		1,204
Lease termination		-		-		356		-		356

Total restructuring costs	$	63	$	420	$	1,672	$	84	$	1,756

The

2017

and

2016

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

2015

costs were reclassified in the Consolidated Statement of Income as “Restructuring Costs” as follows:

$1,669,000

from Cost of Sales,

$36,000

from Selling, General and Administrative expenses and

$51,000

from Gain on sales of property, plant and equipment.