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.

The Company operates manufacturing, treating and distribution facilities throughout North America, Europe, Asia and Australia, but primarily in the United States. The Company manages the operations of its individual locations primarily through a geographic reporting structure under which each location is included in a region and regions are included in our North, South, West, and International divisions. The exceptions to this geographic reporting and management structure are (a) the Company’s Alternative Materials Division, which offers a portfolio of non-wood products and distributes those products nation-wide and is accounted for as a reporting unit within the All Other segment, (b) the Company’s distribution unit (referred to as UFPD) which distributes a variety of products to the manufactured housing industry and is accounted for as a reporting unit within the North segment, and (c) idX division, which designs, manufactures, and installs customized interior fixtures and is accounted for within the All Other segment.

With respect to the facilities in the north, south, and west segments, these facilities generally supply the three markets the Company serves nationally - Retail, Industrial, and Construction. Also, substantially all of our facilities support customers in the immediate geographical region surrounding the facility. One customer, The Home Depot, accounted for approximately 19% of our total sales in fiscal 2018 and 2017, and 20% in 2016.

Our Alternative Materials, International, and idX divisions have been included in the “All Other” column of the table below. The “Corporate” column includes unallocated administrative costs and certain incentive compensation expense.


	2018
							All
	North		South		West		Other		Corporate		Total
Net sales to outside customers	$	1,279,459	$	1,024,747	$	1,599,274	$	585,700	$	—	$	4,489,180
Intersegment net sales		56,682		76,297		56,004		235,905		—		424,888
Interest expense (income)		58		(6)		197		(1,486)		10,130		8,893
Amortization expense		830		1,292		1,998		2,273		—		6,393
Depreciation expense		12,062		8,244		14,836		10,341		9,466		54,949
Segment earnings from operations		66,239		60,049		103,357		6,779		(29,161)		207,263
Segment assets		386,483		266,503		496,939		395,727		101,896		1,647,548
Capital expenditures		17,820		9,185		26,024		39,168		3,665		95,862


	2017
							All
	North		South		West		Other		Corporate		Total
Net sales to outside customers	$	1,133,656	$	837,370	$	1,417,924	$	552,232	$	—	$	3,941,182
Intersegment net sales		67,161		74,566		83,245		167,568		—		392,540
Interest expense		4		160		293		(473)		6,234		6,218
Amortization expense		559		607		1,723		1,971		—		4,860
Depreciation expense		10,511		6,880		14,116		8,586		8,443		48,536
Segment earnings from operations		61,326		46,646		82,465		17,296		(26,264)		181,469
Segment assets		351,270		240,661		462,311		356,264		54,171		1,464,677
Capital expenditures		23,026		12,286		23,212		9,865		2,727		71,116


	2016
							All
	North		South		West		Other		Corporate		Total
Net sales to outside customers	$	1,000,426	$	711,862	$	1,251,093	$	277,112	$	—	$	3,240,493
Intersegment net sales		57,770		38,641		88,311		19,322		—		204,044
Interest expense		1		307		387		143		3,737		4,575
Amortization expense		115		—		1,858		822		—		2,795
Depreciation expense		8,948		6,190		13,326		4,531		7,828		40,823
Segment earnings from operations		59,408		47,146		76,875		16,639		(35,630)		164,438
Segment assets		302,009		192,085		438,674		313,304		45,986		1,292,058
Capital expenditures		10,902		5,571		19,648		6,037		11,604		53,762

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


	2018				2017				2016
			Long-Lived				Long-Lived				Long-Lived
			Tangible				Tangible				Tangible
	Net Sales		Assets		Net Sales		Assets		Net Sales		Assets
United States	$	4,382,356	$	342,326	$	3,821,366	$	313,976	$	3,162,331	$	280,362
Foreign		106,824		34,312		119,816		30,380		78,162		26,106
Total	$	4,489,180	$	376,638	$	3,941,182	$	344,356	$	3,240,493	$	306,468

Sales generated in Canada and Mexico are primarily to customers in the United States of America.

The following table presents, for the periods indicated, our gross sales (in thousands) by major product classification.


	Year Ended
	December 29,		December 30,		December 31,
	2018		2017		2016
Value-Added Sales
Trusses – residential, modular and manufactured housing	$	421,996	$	368,591	$	334,956
Fencing		179,037		187,905		176,668
Decking and railing – composite, wood and other		271,499		244,910		200,004
Turn-key framing and installed sales		151,260		149,520		141,474
Industrial packaging and components		581,622		471,262		391,610
Engineered wood products (eg. LVL; i-joist)		83,212		76,507		76,503
In-store fixtures		252,341		260,174		87,262
Manufactured brite and other lumber		102,333		78,638		68,517
Wall panels		69,889		61,226		53,279
Outdoor DIY products (eg. stakes; landscape ties)		124,907		110,327		106,284
Construction and building materials (eg. door packages; drywall)		305,374		265,048		204,732
Lattice – plastic and wood		48,614		48,736		50,556
Manufactured brite and other panels		97,314		75,742		60,753
Siding, trim and moulding		98,370		85,016		66,048
Hardware		24,662		21,218		20,713
Manufactured treated lumber		20,889		17,584		17,412
Other		21,342		12,604		10,967
Total Value-Added Sales	$	2,854,661	$	2,535,008	$	2,067,738

Commodity-Based Sales
Non-manufactured brite and other lumber		718,456		576,374		469,042
Non-manufactured treated lumber		647,222		575,505		479,333
Non-manufactured brite and other panels		285,888		271,310		238,806
Non-manufactured treated panels		39,768		34,970		30,374
Other		19,754		13,036		12,084
Total Commodity-Based Sales	$	1,711,088	$	1,471,195	$	1,229,639
Total Gross Sales	$	4,565,749	$	4,006,203	$	3,297,377
Sales allowances		(76,569)		(65,021)		(56,884)
Total Net Sales	$	4,489,180	$	3,941,182	$	3,240,493