SEGMENT REPORTING

6 Months Ended

Jun. 26, 2021

SEGMENT REPORTING

SEGMENT REPORTING

G.       SEGMENT REPORTING

The Company operates manufacturing, treating and distribution facilities internationally, but primarily in the United States. The business segments align with the following markets: UFP Retail Solutions, UFP Construction and UFP Industrial. The Company manages the operations of its 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, Industrial, and Construction segments. In the case of locations which serve multiple segments, results are allocated and accounted for by segment. The exception to this market-centered reporting and management structure is the Company’s International segment, which comprises our Mexico, Canada, and Australia operations and sales and buying offices in other parts of the world.

Our International segment and Ardellis (our insurance captive) have been included in the “All Other” column of the table below.

The “Corporate” column includes purchasing, transportation and administrative functions that serve our operating segments. Operating results of Corporate primarily consists of over (under) allocated costs. The operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns and leases transportation equipment, are also included in the Corporate column. An inter-company lease charge is assessed to our operating segments for the use of these assets at fair market value rates. Total assets of 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., and UFP Transportation Ltd. The tables below are presented in thousands:

	Three Months Ended June 26, 2021
	Retail		Industrial		Construction		All Other		Corporate		Total
Net sales to outside customers	$	1,259,218	$	611,181	$	738,704	$	89,470	$	1,968	$	2,700,541
Intersegment net sales		65,147		24,985		20,034		126,054		(236,220)		—
Segment operating profit		62,051		79,526		67,107		16,304		11,947		236,935

	Three Months Ended June 27, 2020
	Retail		Industrial		Construction		All Other		Corporate		Total
Net sales to outside customers	$	609,190	$	224,379	$	359,170	$	49,411	$	(149)	$	1,242,001
Intersegment net sales		34,104		9,795		16,353		67,712		(127,964)		—
Segment operating profit		45,775		15,420		19,542		8,633		2,989		92,359

	Six Months Ended June 26, 2021
	Retail		Industrial		Construction		All Other		Corporate		Total
Net sales to outside customers	$	2,018,239	$	1,060,055	$	1,298,234	$	145,047	$	3,970	$	4,525,545
Intersegment net sales		112,733		42,891		34,495		223,450		(413,569)		—
Segment operating profit		115,596		119,936		100,125		24,282		14,483		374,422

	Six Months Ended June 27, 2020
	Retail		Industrial		Construction		All Other		Corporate		Total
Net sales to outside customers	$	961,351	$	480,922	$	740,325	$	91,804	$	(339)	$	2,274,063
Intersegment net sales		63,962		21,015		31,776		120,879		(237,632)		—
Segment operating profit		59,901		31,800		34,031		13,124		12,134		150,990

The following table presents goodwill by segment as of June 26, 2021, and December 26, 2020 (in thousands):

	Retail		Industrial		Construction		All Other		Corporate		Total
Balance as of December 26, 2020	$	61,943	$	87,827	$	90,729	$	11,694	$	—	$	252,193
2021 Acquisitions		19,442		43,844		4,570		4,176		—		72,032
2021 Purchase Accounting Adjustments		—		(2,291)		(1,653)		(2,060)		—		(6,004)
Foreign Exchange, Net		—		—		—		(113)		—		(113)
Balance as of June 26, 2021	$	81,385	$	129,380	$	93,646	$	13,697	$	—	$	318,108

The following table presents total assets by segment as of June 26, 2021, and December 26, 2020 (in thousands).

	Total Assets by Segment
	June 26,		December 26,
Segment Classification	2021		2020		% Change
Retail	$	1,053,736	$	510,464	106.4	%
Industrial		784,049		416,487	88.3
Construction		640,982		510,972	25.4
All Other		266,720		196,856	35.5
Corporate		482,796		770,112	(37.3)
Total Assets	$	3,228,283	$	2,404,891	34.2	%