10-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the fiscal year ended December 25, 2021.

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the transition period of ____ to _____.

Commission File No.:  0-22684

UFP INDUSTRIES, INC.

(Exact name of registrant as specified in its charter)

Michigan	38-1465835
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
2801 East Beltline, N.E., Grand Rapids, Michigan	49525
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code (616) 364-6161

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $1 par value	UFPI	The NASDAQ Global Select Market

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.   Yes ⌧            No ◻

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.   Yes ◻            No ⌧

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes ⌧            No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files)   Yes ⌧            No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ⌧	Accelerated filer ◻	Non-accelerated filer ◻	Smaller Reporting Company ☐
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).   Yes ☐            No ⌧

The aggregate market value of the common stock held by non-affiliates of the registrant (i.e. excluding shares held by executive officers, directors, and control persons as defined in Rule 405, 17 CFR 230.405) on June 25, 2021 was $4,240,620,108 computed at the closing price of $72.73 on that date.

As of January 30, 2022, 61,905,218 shares of the registrant’s common stock, $1 par value, were outstanding.

Documents incorporated by reference:

(1) Certain portions of the registrant’s Annual Report to Shareholders for the fiscal year ended December 25, 2021 are incorporated by reference into Part I and II of this Report.

(2) Certain portions of the registrant’s Proxy Statement for its 2022 Annual Meeting of Shareholders are incorporated by reference into Part III of this Report.

Exhibit Index located on page E-16.

ANNUAL REPORT ON FORM 10-K

DECEMBER 25, 2021

TABLE OF CONTENTS

PART I
Item 1.	Business.	2
Item 1A.	Risk Factors.	5
Item 1B.	Unresolved Staff Comments.	7
Item 2.	Properties.	7
Item 3.	Legal Proceedings.	10
Item 4.	Mine Safety Disclosures.	10
Additional item: Executive Officers of the Registrant.		10
PART II
Item 5.	Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities.	11
Item 6.	Selected Financial Data.	11
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	11
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk.	11
Item 8.	Financial Statements and Supplementary Data.	12
Item 9.	Changes In and Disagreements with Accountants on Accounting and Financial Disclosure.	12
Item 9A.	Controls and Procedures.	12
Item 9B.	Other Information.	13
PART III
Item 10.	Directors, Executive Officers and Corporate Governance.	13
Item 11.	Executive Compensation.	13
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.	13
Item 13.	Certain Relationships and Related Transactions, and Director Independence.	14
Item 14.	Principal Accountant Fees and Services.	14
PART IV
Item 15.	Exhibits, Financial Statement Schedules.	14

1

PART I

Item 1. Business.

General Development of the Business.

UFP Industries, Inc. (“we” or “our”) is a holding company with subsidiaries throughout North America, Europe, Asia, and Australia that supply products primarily manufactured from wood, wood and non-wood composites, and other materials to three markets: retail, industrial, and construction. We are headquartered in Grand Rapids, Michigan. For more information about UFP Industries, Inc., or our affiliated operations, go to www.ufpi.com.

Information relating to current developments in our business is incorporated by reference from our Annual Report to Shareholders for the fiscal year ended December 25, 2021 ("2021 Annual Report") under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations."  Selected portions of the 2021 Annual Report are filed as Exhibit 13 with this Form 10-K Report.

Financial Information About Segments.

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.

Our business segments consist of UFP Retail Solutions, UFP Industrial and UFP Construction and align with the markets we serve. 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, Industrial, and Construction segments. The exception to this market-centered reporting and management structure is the Company’s International segment, which comprises our Mexico, Canada, Europe, Asia and Australia operations and sales and buying offices in other parts of the world. Our International segment and Ardellis (our insurance captive) are referred to as “All Other” throughout this report. The Corporate segment 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, leases and operates transportation equipment, are also included in Corporate.

Narrative Description of Business.

We design, manufacture and market wood and wood-alternative products, primarily used to enhance outdoor living environments, for national home centers and other retailers; roof trusses, structural lumber and panels, and other products for the manufactured housing industry; engineered wood components for residential and commercial construction, customized interior fixtures, millwork, and casework used in a variety of retail, commercial and other structures; and structural wood packaging, other packing materials, and OEM components for various industries. Each of our segments, Retail, Industrial and Construction, are discussed in the paragraphs that follow.

Retail segment. The customers comprising this segment are national home center retailers, retail-oriented regional lumberyards and contractor-oriented lumberyards. Generally, terms of sale are established for annual or bi-annual periods, and orders are placed with our regional facilities in accordance with established terms. Our two largest customers, The Home Depot and Lowes, accounted for approximately 16% and 10%, respectively, of our total net sales in fiscal 2021, 24% and 4%, respectively, in 2020, and 19% and 4%, respectively, in 2019.

We supply customers in this segment from many of our locations. These regional facilities are able to supply mixed truckloads of products which can be delivered to customers with rapid turnaround from receipt of an order. Freight costs are a factor in the ability to competitively service this market, especially with treated wood products because of their heavier weight. The proximity of our regional facilities to the various outlets of these customers is a factor when developing and establishing annual sales programs.

2

The products offered to customers in this segment include dimensional lumber (both preserved and unpreserved) and various "value-added products," some of which are sold under our trademarks. In addition to our conventional lumber products, we offer a large portfolio of outdoor living products, including wood and wood composite decking and related accessories, decorative lawn and garden products and craft and hobby products. Products sold to this segment include those sold under the following trademarks: ProWood, ProWood FR, Deckorators, UFP-Edge, Outdoor Essentials, Dimensions, and Handprint. These product categories also comprise the business units within our retail segment. We estimate we produce approximately 27% of all treated wood, 8-10% of all composite decking and accessories, 8% of all wood and vinyl fencing and 1% of all lawn and garden products in the United States of America.

We are not aware of any competitor that currently manufactures, treats and distributes a full line of both value-added and commodity-based products on a national basis as we do within our retail segment. We face competition on individual products from several different producers, but the majority of these competitors tend to be regional in their efforts and/or do not offer a full line of outdoor lumber products. We believe the breadth of our product offering, scale and geographic dispersion, proximity of our plants to core customers, product innovation initiatives, purchasing and manufacturing expertise, and service capabilities provide competitive advantages in this market. Refer to Note M “Segment Reporting” of the registrant’s Annual Report to Shareholders for the fiscal year ended December 25, 2021 for our disaggregated net sales by business unit for the retail segment.

Industrial segment. We define our industrial segment as manufacturers and agricultural customers who use pallets, specialty crates, wooden boxes, and other containers used for packaging, shipping and material handling purposes, as well as various other products, including protective packaging, used in a variety of different applications. Many of the wood-based products sold to this market may be produced from the wood by-product of other manufactured products, thereby allowing us to increase our raw material yields while expanding our business. Competition is fragmented and includes virtually every supplier of lumber convenient to the customer. We service this segment with our dedicated regional and national sales teams. The business units comprising out industrial segment are organized geographically. We currently supply approximately 8% of all domestic wood packaging, which includes estimated market share of 7% of machine-built wood pallets and 13% of custom wood packaging. Refer to Note M “Segment Reporting” of the registrant’s Annual Report to Shareholders for the fiscal year ended December 25, 2021 for our disaggregated net sales by business unit for the industrial segment.

Construction segment. Our construction segment is made up of customers in four primary markets – factory-built housing, site-built residential construction, commercial construction, and concrete forming, which represent the business units of our construction segment.

The customers comprising the factory-built housing market are producers of mobile, modular and prefabricated homes and recreational vehicles (RV). Products sold to customers in this market consist primarily of roof trusses, lumber cut and shaped to the customer’s specification, plywood, oriented strand board and dimensional lumber, all intended for use in the construction of manufactured housing. Sales are made by personnel located at each regional facility based on customer orders. Our principal competitive advantages include our product knowledge, the strength of our engineering support services, the proximity of our regional facilities to our customers, our purchasing and manufacturing expertise and our ability to provide national sales programs to certain customers. As a result of these advantages, we estimate we produce approximately 45% of all roof trusses used in factory-built housing in the United States of America. We also distribute products such as siding, electrical and plumbing products to factory-built housing and RV customers.

3

The customers comprising the site-built residential construction market are primarily large-volume, multi-tract builders and smaller volume custom builders. We also supply builders engaged in multi-family and light commercial construction. Competition in this market is primarily fragmented, but we do compete with a small number of national and regional retail contractor yards who also manufacture components and provide framing services, as well as regional manufacturers of components. We believe our primary competitive advantages relate to the engineering and design capabilities of our regional staff, purchasing and manufacturing expertise, product quality, timeliness of delivery, and financial strength, as well as providing a comprehensive turn-key package, including installation. As a result of these strengths, we estimate we produce approximately 5% of all engineered wood components used in housing in the United States of America. Generally, terms of sale and pricing are determined based on contracts we entered into with our customers.  We currently supply customers in these markets from manufacturing facilities located in many different states. These facilities manufacture various engineered wood components used to frame residential or light commercial projects, including roof and floor trusses, wall panels, I-joists and lumber packages. Freight costs are a factor in the ability to competitively service this market due to the space requirements of these products on each truckload. We also provide framing services for builders in certain regional markets, in which we erect the wood structure.

Our commercial business unit primarily includes the operations of idX Holdings, Inc. ("idX"). idX is a designer, manufacturer and installer of highly customized interior fixtures, casework and millwork used in a variety of retail and commercial structures representing several end markets.

Finally, we design, manufacture, and supply wood forms and related products which are used by our customers to set or form concrete for various structures, including large parking garages, stadiums and bridges. Refer to Note M “Segment Reporting” of the registrant’s Annual Report to Shareholders for the fiscal year ended December 25, 2021 for our disaggregated net sales by business unit for the construction segment.

Suppliers. We are one of the largest domestic buyers of solid sawn softwood lumber from primary producers (lumber mills). We use primarily southern yellow pine in our pressure-treating operations and site-built component plants in the Southeastern United States, which we obtain from mills located throughout the states comprising the Sunbelt. Other species we use include "spruce-pine-fir" from various provinces in Canada; hemlock, douglas fir and cedar from the Pacific Northwest; inland species of pine, plantation grown radiata and southern yellow pines from South America; and European spruce. During 2021 our annual purchases of lumber totaled approximately $3.0 billion and consisted of the following species and their respective percent of total lumber purchases: southern yellow pine (57%), spruce-pine-fir (22%), and douglas fir (4%), while the remaining 17% of lumber purchases comprise various other species and imports outside of North America.  Additionally, we purchased approximately $1.0 billion in plywood in 2021. There are numerous primary producers for all varieties we use, and we are not dependent on any particular source of supply. Our financial resources and size, in combination with our strong sales network and ability to remanufacture lumber, enable us to purchase a large percentage of a primary producer’s output (as opposed to only those dimensions or grades in immediate need), thereby lowering our average cost of raw materials and allowing us to obtain favorable programs such as consigned inventory. We believe these represent competitive advantages.

Intellectual Property. We own several patents and have several patents pending on technologies related to our business. In addition, we own numerous registered trademarks and claim common law trademark rights to several others. As we develop proprietary brands, we may pursue registration or other formal protection. While we believe our patent and trademark rights are valuable, the loss of a patent or any trademark would not be likely to have a material adverse impact on our competitive position.

Backlog. Due to the nature of our retail and industrial businesses, backlog information is not meaningful. The maximum time between receipt of a firm order and shipment does not usually exceed a few days. Therefore, we would not normally have a backlog of unfilled orders in a material amount. The relationships with our major customers are such that we are either the exclusive supplier of certain products and/or certain geographic areas, or the designated source for a specified portion of the customer’s requirements. In such cases, either we are able to forecast the customer’s requirements, or the customer may provide an estimate of its future needs. In neither case, however, will we receive firm orders until just prior to the anticipated delivery dates for the products in question.

4

On December 25, 2021 and December 26, 2020, we estimate that backlog orders associated with our customized interior fixture businesses approximated $84.6 million and $65.2 million, respectively.

On December 25, 2021 and December 26, 2020, we estimate that backlog orders associated with our site-built construction businesses approximated $113.5 million and $106.0 million, respectively. We expect that the orders above will be primarily filled within the next fiscal year; however, it is possible that some orders could be canceled.

Environmental. Information required for environmental disclosures is incorporated by reference from Note L of the Consolidated Financial Statements presented under Item 8 herein.

Seasonality. Information required for seasonality disclosures is incorporated by reference from Item 1A. Risk Factors under the caption “Seasonality and weather conditions could adversely affect us.”

Employees. On December 25, 2021, we had approximately 15,000 employees. For over 65 years, the success of our company has rested on the skill, motivation and performance of our employees.  We treat our people honestly and fairly, creating career paths and training opportunities to develop and expand their scope of responsibilities and financial rewards.  This approach to human capital, which is embedded in the Company's culture, has fostered an environment where our employees often commit their respective careers to UFP Industries, Inc.

Available Information.

Our Internet address is www.ufpi.com. Through our Internet website under "Financial Information" in the Investor Relations section, we make available free of charge, as soon as reasonably practical after such information has been filed with the SEC, our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed pursuant to Section 13(a) or 15(d) of the Securities Exchange Act. Also available through our Internet website under "Corporate Governance" in the Investor Relations section is our Code of Ethics for Senior Financial Officers.

Reports to Security Holders.

Not applicable.

Enforceability of Civil Liabilities Against Foreign Persons.

Not applicable.

Item 1A. Risk Factors.

We may be impacted by a significant change in the value of the U.S. dollar and our results of operations may be harmed by currency fluctuations and inflation. We purchase a variety of raw materials and finished goods from sources around the world and export certain products. The impact of a change in U.S. dollar exchange rates, and inflation, would impact our import purchases and export sales, which totaled $806.8 million and $181.3 million, respectively, in 2021. In addition, many of our industrial customers export their products.

5

We are subject to fluctuations in the price of lumber. We experience significant fluctuations in the cost of commodity lumber products from primary producers (the "Lumber Market"). A variety of factors over which we have no control, including government and environmental regulations, weather conditions, economic conditions, and natural disasters, impact the cost of lumber products and our selling prices. While we attempt to minimize our risk from severe price fluctuations, substantial, prolonged trends in lumber prices can affect our sales, cost of materials, and gross profits. Our products are generally priced to the customer based on a quoted, fixed selling price or "indexed" to the Lumber Market with a fixed dollar adder to cover conversion costs and profit. The impact on our profitability from changes in lumber prices is discussed in the “Historical Lumber Prices” and "Impact of the Lumber Market on Our Operating Results" captions of our Management’s Discussion and Analysis of Financial Condition and Results of Operations section under Item 7 of this Form 10-K. Our lumber costs, including plywood, as a percentage of net sales were 47.7%, 51.0%, and 43.4% in 2021, 2020, and 2019, respectively.

Our growth may be limited by the markets we serve, including our construction market which is highly cyclical. Our sales growth is dependent, in part, upon the growth of the markets we serve. If our markets do not achieve anticipated growth, or if we fail to maintain our market share, financial results could be impaired.

A significant portion of our sales are concentrated with two customers. Our sales to The Home Depot and Lowes comprised 16% and 10%, respectively, of our total net sales in fiscal 2021, 24% and 4%, respectively, in 2020, and 19% and 4%, respectively, in 2019.

We may be impacted by vertical integration strategies. In certain markets and product lines, our customers or vendors could pursue vertical integration strategies that could have an adverse effect on our sales. We strive to add value and be a low-cost producer while maintaining competitive pricing in each of our markets to mitigate this risk.

We may be impacted by industry capacity of products we supply. From time to time, we may experience excess capacity among suppliers of certain products in some of the markets we serve. Our selling prices and profitability are impacted during periods of shortages or excess industry capacity relative to market demand. Currently, we may also experience limited capacity among suppliers of certain products as a result of supply chain challenges associated with the COVID-19 pandemic, which may impact our profitability and ability to meet sales objectives.

Our growth may be limited by our ability to make successful acquisitions. A key component of our growth strategy is to complete business combinations. Business combinations involve inherent risks, including assimilation and successfully managing growth. While we conduct extensive due diligence and have taken steps to ensure successful assimilation, factors beyond our control could influence the relative success of these acquisitions.

We may be adversely affected by the impact of environmental and safety regulations. We are subject to the requirements of federal, state, and local environmental and occupational health and safety laws and regulations. There can be no assurance that we are at all times in complete compliance with all of these requirements. We have made and will continue to make capital and other expenditures to comply with environmental regulations. If additional laws and regulations are enacted, which restrict our ability to manufacture and market our products, including our treated lumber products, it could adversely affect our sales and profits. Changes in the interpretation of existing laws could also adversely impact our financial results.

Climate change - seasonality and weather conditions due to climate changes could adversely affect us. Some aspects of our business are seasonal in nature and results of operations vary from quarter to quarter. In addition, the majority of our products sold to the Retail and Construction markets are used or installed in outdoor construction applications; therefore, short-term sales volume, productivity and gross profits can be negatively affected by adverse weather conditions, particularly in our first and fourth quarters. To the extent changes in the world’s climate have a greater impact on adverse weather conditions, we would expect more variability in our business operations and results.

Inbound and outbound transportation costs represent a significant part of our cost structure. An increase in fuel and other operating expenses will significantly increase our costs. While we attempt to pass these costs along to our customers, there can be no assurance that they would agree to these price increases. Our total inbound and outbound transportation costs were approximately 7.3%, 9.2%, and 9.5% of net sales in 2021, 2020, and 2019, respectively.

6

New alternatives may be developed to replace traditional treated wood products. The manufacturers of wood preservatives continue to develop new preservatives. While we believe treated products are reasonably priced relative to alternative products such as composites or vinyl, new alternatives may impact the sales of treated wood products. In addition, new preservatives could increase our cost of treating products in the future.

Cybersecurity breaches and a failure in our e-commerce operations and could disrupt our business. We rely upon information technology systems and network products and the secure operation of these systems and products.  Despite security measures, these systems and products may be vulnerable to physical damage, hackers, computer viruses, or breaches due to errors or malfeasance by employees, vendors, or customers.  We have experienced such events in the past and, although past events were immaterial, future events may occur and may be material. Additionally, consumers are increasingly shopping online and through mobile commerce applications. As a result, we are vulnerable to additional risks and uncertainties associated with e-commerce sales, including rapid changes in technology, website downtime and other technical failures, security breaches, cyber-attacks, consumer privacy concerns, changes in state tax regimes and government regulation of internet activities. Our failure to successfully respond to these risks and uncertainties could reduce our e-commerce sales and increase our costs, which could negatively impact our results of operations. In addition, there is no guarantee that we will be able to expand our e-commerce business. Our competitors may have e-commerce businesses that are substantially larger and more developed than ours, which could place us at a competitive disadvantage.

We may be impacted by new tariffs and duties on U.S. imports and foreign export sales.  Instability of established free trade agreements may lead to raw material and finished goods price volatility.  An increase in foreign tariffs on U.S. goods could curtail our export sales to other countries which was approximately $181.3 million in 2021.  Increased tariffs and duties on U.S. imports will increase pricing by adding duty cost, where the duty is sustainable in light of overall unit price, or otherwise constrain supply by eliminating historical production sources by country or commodity type with unsustainable duties.  Our purchases that are impacted by foreign tariffs were approximately $806.8 million in 2021, including UFP’s U.S. import of Canadian Softwood Lumber of approximately $513.9 million, which is the largest imported commodity.  In addition, there is a risk that U.S. tariffs on imports and countering tariffs on U.S. exports could trigger broader international trade conflicts that could adversely impact our business.

We may be adversely affected by the impact of the COVID-19 (Coronavirus) pandemic and similar outbreaks. Disease outbreaks, such as the COVID-19 pandemic, could have an adverse impact on the Company's operations and financial results. These outbreaks may adversely impact our business, consolidated results of operations and financial condition, such as the current COVID-19 pandemic. COVID-19, as well as measures taken by governmental authorities and businesses to limit the spread of this virus, may result in an adverse change in customer demand and our sales, interfere with the ability of our employees and suppliers to perform and function in a manner consistent with targeted objectives and otherwise adversely impact the efficiency of our operations. This has caused, and may continue to cause, us to materially curtail certain segments, and could have a material adverse effect on the results of our operations and cash flow.

Adverse economic conditions and our customers’ ability to operate may impact their ability to pay. This may result in higher write-offs of receivables than we normally experience. We continue to monitor our customers’ business activities, payment patterns, and credit profiles carefully and make changes in our terms when necessary in response to this risk. As a result, our accounts receivable aging as of December 25, 2021 was approximately 92% current. Our bad debt expense as a percentage of sales was 0.01%, 0.02%, and 0.09%, in 2021, 2020, and 2019, respectively. During the most difficult collection period of the Great Recession, from 2008 through 2010, our bad debt expense as a percentage of sales averaged 0.25%.

Item 1B. Unresolved Staff Comments.

Not applicable.

Item 2. Properties.

Our corporate headquarters building is located in suburban Grand Rapids, Michigan. We currently have approximately 216 facilities located throughout the United States, Canada, Mexico, Europe, Asia, and Australia. Depending upon function and location, these facilities typically utilize office, manufacturing, and indoor and outdoor storage space.

7

The following tables summarize our property locations assigned by the primary segment the plant serves. Due to the nature of our business and historical operating strategy, many of our locations service more than one segment.

RETAIL SEGMENT
Property Location	Number of Properties	Property Location	Number of Properties
Athens, AL	1	Puerto Rico	1
Bartow, FL	1	Ranson, WV	1
Bonner, MT	2	Ringgold, GA	1
Dodgeville, WI	1	Rockledge, FL	1
Elizabeth City, NC	1	Rockwell, NC	1
Fort Worth, TX	1	Saginaw, TX	1
Gainesville, GA	1	Salina, KS	1
Hamilton, OH	1	Schertz, TX	1
Harrisonville, MO	1	Selma, AL	2
Hendersonville, NC	1	Silsbee, TX	1
Janesville, WI	2	South Greer, SC	1
Kansas City, MO	1	Stockertown, PA	1
Kearneysville, WV	2	Tampa, FL	2
Lansing, MI	1	Thomaston, GA	1
Lockhart, FL	1	Union City, GA	1
Louisville, AL	1	White Bear Lake, MN	2
Matthews, NC	1	White City, OR	1
Moultrie, GA	1	White Pigeon, MI	1
Poulsbo, WA	1	Windsor, CO	3
Prairie du Chien, WI	2	TOTAL	48
INDUSTRIAL SEGMENT
Property Location	Number of Properties	Property Location	Number of Properties
Adairsville, GA	1	Milwaukee, WI	1
Ashburn, GA	1	Mocksville, NC	1
Auburndale, FL	2	Morristown, TN	1
Barnesville, GA	1	Nappanee, IN	1
Bartow, FL	2	New Boston, TX	1
Blanchester, OH	1	New London, WI	2
Blue Island, IL	1	Newnan, GA	2
Burnsville, MN	1	Newton, NC	1
Butner, NC	2	Orangeburg, SC	1
Chaffee, NY	1	Peru, IL	1
Chandler, AZ	2	Port Arthur, TX	1
Chase City, VA	1	Prattville, AL	1
Clarksville, TX	2	Rancho Cucamonga, CA	1
Dallas, TX	1	Riverside, CA	1
Douglas, GA	1	Robertsdale, AL	1
Eatonton, GA	2	Rowesville, SC	1
Forsyth, GA	1	Salisbury, NC	2
Franklinton, NC	1	Selma, AL	1
Gilmer, TX	1	Sharon, TN	2
Grandview, TX	4	Shawnee, OK	1
Hartford, WI	1	Shipshewana, IN	1
Hazlehurst, GA	2	Siler City, NC	1
Huntsville, TX	1	Snohomish, WA	1
Lawrenceburg, TN	1	Thornton, CA	1
Livermore Falls, ME	1	Walker, MI	1
Magna, UT	1	Warrens, WI	1
Marietta, GA	1	Waterloo, WI	1
Martin, TN	1	Wenatchee, WA	1
McMinnville, OR	2	Woodburn, OR	3
Miami, FL	1	Yakima, WA	1
		TOTAL	77

8

CONSTRUCTION SEGMENT
Property Location	Number of Properties	Property Location	Number of Properties
Athena, OR	1	Lafayette, CO	1
Auburn, NY	1	Liberty, NC	1
Aurora, CO	1	Locust, NC	1
Bangalore	1	London, United Kingdom	1
Belchertown, MA	1	Londonderry, NH	1
Berlin, NJ	2	Minneota, MN	1
Bridgeton, MO	1	Nampa, ID	1
Brooklyn Center, MN	1	Naugatuck, CT	1
Burlington, NC	1	New London, NC	1
Cedar Hill, TX	1	New Windsor, MD	1
Chesapeake, VA	1	Ontario, CA	1
Chicago, IL	1	Ooltewah, TN	1
Clinton, NC	1	Parker, PA	2
Conway, SC	1	Payallup, WA	1
Cordele, GA	1	Pearisburg, VA	1
Dayton, OH	1	Plainville, MA	1
Delano, PA	1	San Antonio, TX	2
Elkhart, IN	3	Sidney, NY	1
Folkston, GA	2	St. Louis, MO	1
Fredericksburg, VA	1	Stafford, TX	1
Gordon, PA	1	Stanfield, NC	2
Granger, IN	1	Temple, TX	1
Granger, IN	1	Vaughan, ON	1
Haleyville, AL	3	Washington, NC	1
Hillsboro, TX	1	West Berlin, NJ	1
Hudson, NY	1	Wilton, NH	1
Jefferson, GA	1	Wujiang City, Jiangsu Province, China	1
Kyle, TX	1	Narrows, VA	1
		TOTAL	65
ALL OTHER SEGMENT
Property Location	Number of Properties	Property Location	Number of Properties
Apaseo el Grande, Gto., Mexico	1	Attibele, India	1
Chateauguay, Quebec, Canada	1	Jigani, India	1
Cambiago MI, Italy	1	Pune, India	1
Durango, Mexico	1	Chennai, India	1
Erskine Park, Australia	1	Noida, India	1
Lacolle, Quebec, Canada	1	Indore, India	1
Nuevo Leon, Mexico	1	Hyderbad, India	1
Victoria, Australia	4	Vadodara, India	1
Yeerongpilly, Australia	1	Karnataka, India	1
Koraluru, India	1	Utica, NY	1
Coimbatore, India	1	TOTAL	24
CORPORATE SEGMENT
Property Location	Number of Properties
Grand Rapids, MI	1
Norton Shores, MI	1
TOTAL	2

We own all of our properties, free from any significant mortgage or other encumbrance, except for approximately 105 facilities which are leased. We believe all of these operating facilities are adequate in capacity and condition to service our existing markets.

9

Item 3. Legal Proceedings.

Information regarding our legal proceedings is set forth in Note L of our Consolidated Financial Statements which are presented under Item 8 of this Form 10-K and are incorporated herein by reference.

Item 4. Mine Safety Disclosures.

Not applicable.

Additional Item:  Executive Officers of the Registrant.

The following table lists the names, ages, and positions of our executive officers as of February 1, 2022. Executive officers are elected annually by the Board of Directors at the first meeting of the Board following the annual meeting of shareholders.

Name	Age	Position
Matthew J. Missad	61	Chief Executive Officer
Patrick M. Webster	62	President and Chief Operating Officer
Michael R. Cole	55	Chief Financial Officer and Treasurer
Allen T. Peters	54	President and Chief Operating Officer of UFP Retail Solutions, LLC
Patrick M. Benton	52	President of UFP Construction, LLC
Scott A. Worthington	51	President of UFP Industrial, LLC
Scott T. Bravata	57	Vice President of Accounting and Administration
David A. Tutas	52	General Counsel, Chief Compliance Officer and Secretary

Matthew J. Missad joined us in 1985. In February 1996, Mr. Missad was promoted to Executive Vice President of the Company. On July 13, 2011, Mr. Missad became Chief Executive Officer of the Company.

Patrick M. Webster joined us in 1985. Mr. Webster became Vice President of the Far West Region in 1999, on July 1, 2007, he became President of UFP Western Division, Inc., and on January 1, 2009 became President and Chief Operating Officer of the Company.

Michael R. Cole joined us in 1993 from the international public accounting firm Deloitte & Touche. In December 1999, he was promoted to Vice President of Finance. On July 19, 2000, Mr. Cole became Chief Financial Officer of the Company.

Allen T. Peters joined us in 1997.  In 2004 he became the General Manager of Operations of our plant in Harrisonville, MO and in 2007 became Regional Vice President of our Gulf Region. On January 1, 2011, Mr. Peters became President of UFP Western Division, Inc, and on January 1, 2020, he became President and COO of UFP Retail Solutions, LLC.

Patrick M. Benton joined us in 1993. In 2008 he became Operations Vice President of the South Texas Region, and on July 1, 2014, he became Executive Vice President of UFP Eastern Division – North.  On February 1, 2017, Mr. Benton became President of the UFP Northern Division, and on January 1, 2020, he became President of UFP Construction, LLC.

Scott A. Worthington joined us in 1997. In 2007, he became General Manager of Operations of our plant in New Waverly, TX, and on August 1, 2014, he became Regional Vice President of the South Texas Region. On January 1, 2020, he became President of UFP Industrial, LLC

Scott T. Bravata joined us in 1988. He became Director of Wholesale Accounting in 1989 and became Corporate Controller in 1997. On February 27, 2006, he became Vice President of Accounting and Administration.

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David A. Tutas joined us in 2003 as a staff counsel. In 2007, he was promoted to Director of Legal Services. On August 1, 2011, he was promoted to General Counsel. On January 18, 2013, he became Secretary of the Company, and on February 1, 2019, he became Chief Compliance Officer.

PART II

The following information items in this Part II, which are contained in the 2021 Annual Report, are specifically incorporated by reference into this Form 10-K Report. These portions of the 2021 Annual Report that are specifically incorporated by reference are filed as Exhibit 13 with this Form 10-K Report.

Item 5. Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities.

(a) The information relating to market, holders and dividends is incorporated by reference from the 2021 Annual Report under the caption “Stock Performance Graph.”

There were no sales of unregistered securities during the last three years.

(b) Not applicable.

(c) Issuer purchases of equity securities during the fourth quarter.

Fiscal Month	(a)	(b)	(c)	(d)
September 26 – October 30, 2021	—	—	—	—
October 31 – November 27, 2021	—	—	—	—
November 28 – December 25, 2021	—	—	—	—

(a) Total number of shares purchased.

(b) Average price paid per share.

(c) Total number of shares purchased as part of publicly announced plans or programs.

(d) Maximum number of shares that may yet be purchased under the plans or programs.

Effective February 15, 2022, our Board authorized an additional 1.5 million shares to be repurchased under our existing share repurchase program. The total number of remaining shares that may be repurchased under the program is approximately 2.6 million through the period ending February 3, 2023.

Item 6. Selected Financial Data.

The information required by this Item is incorporated by reference from the 2021 Annual Report under the caption "Selected Financial Data."

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The information required by this item is incorporated by reference from the 2021 Annual Report under the caption "Management’s Discussion and Analysis of Financial Condition and Results of Operations."

Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

We are exposed to market risks related to fluctuations in interest rates on our variable rate debt, which consists of a revolving credit facility and industrial development revenue bonds. We do not enter into any material interest rate swaps, futures contracts or options on futures, or other types of derivative financial instruments to mitigate this risk.

11

For fixed rate debt, changes in interest rates generally affect the fair market value, but not earnings or cash flows. Conversely, for variable rate debt, changes in interest rates generally do not influence fair market value, but do affect future earnings and cash flows. We do not have an obligation to prepay fixed rate debt prior to maturity, and as a result, interest rate risk and changes in fair market value should not have a significant impact on such debt until we would be required to refinance it.

On December 25, 2021, the estimated fair value of our long-term debt, including the current portion, was $329.7 million. The estimated fair value is based on rates anticipated to be available to us for debt with similar terms and maturities. The estimated fair value of notes payable included in current liabilities and the revolving credit facility approximated the carrying values as these debt instruments have interest rates that fluctuate with current market conditions.

Expected cash flows over the next five years related to debt instruments, excluding debt issuance costs, are as follows:

($US equivalents, in thousands)	2022			2023			2024			2025		2026			Thereafter			Total
Long-term Debt:
Fixed Rate ($US)	$	35,028		$	1,044		$	40,214		$	—	$	302		$	225,000		$	301,588
Average interest rate		3.89	%		9.65	%		4.05	%		—		9.65	%		3.55	%
Variable Rate ($US)	$	7,655		$	7,819		$	—		$	—	$	—		$	3,300		$	18,774
Average interest rate(1)		9.44	%		1.06	%		—			—		—			0.14	%
(1) Average of rates at December 25, 2021

Item 8. Financial Statements and Supplementary Data.

The information required by this Item is incorporated by reference from the 2021 Annual Report under the following captions:

"Report of Independent Registered Public Accounting Firm"

"Report of Independent Registered Public Accounting Firm"

"Consolidated Balance Sheets"

"Consolidated Statements of Earnings and Comprehensive Income"

"Consolidated Statements of Shareholders’ Equity"

"Consolidated Statements of Cash Flows"

"Notes to Consolidated Financial Statements"

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

None.

Item 9A. Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

We conducted an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended, referred to herein as “Disclosure Controls”) as of the end of the period covered by this Annual Report on Form 10-K. The controls evaluation was performed under the supervision and with the participation of management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO). Based upon our most recent evaluation, we have concluded that the consolidated financial statements included in this Annual Report on Form 10-K fairly present, in all material respects,

12

our financial position, results of operations and cash flows for the periods presented in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

Management’s Annual Report on Internal Control over Financial Reporting

Management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act and based upon the criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP. Our management assessed the effectiveness of our internal control over financial reporting as of December 25, 2021. Based on this assessment, our internal control over financial reporting was effective as of December 25, 2021.

Deloitte & Touche LLP, our independent registered public accounting firm, has audited the effectiveness of our internal control over financial reporting as of December 25, 2021. Deloitte & Touche LLP's opinion, as stated in their report which appears on page 22 of this Form 10-K, is consistent with management's report on internal control over financial reporting as set forth above.

Changes in internal control over financial reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended December 25, 2021, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information.

Not applicable.

PART III

Item 10. Directors, Executive Officers and Corporate Governance.

Information relating to our directors, compliance with Section 16(a) of the Securities and Exchange Act of 1934 and various corporate governance matters is incorporated by reference from our definitive Proxy Statement for the year ended December 25, 2021 for the 2022 Annual Meeting of Shareholders, as filed with the Commission ("2022 Proxy Statement"), under the captions "Election of Directors," "Corporate Governance and Board Matters," and "Section 16(a) Beneficial Ownership Reporting Compliance."  Information relating to executive officers is included in this report in the last Section of Part I under the caption "Additional Item: Executive Officers of the Registrant."  Information relating to our code of ethics is included in this report in Part I, Item 1 under the caption “Available Information”.

Item 11. Executive Compensation.

Information relating to director and executive compensation is incorporated by reference from the 2022 Proxy Statement under the caption "Executive Compensation."  The "Personnel and Compensation Committee Report" included in the 2022 Proxy Statement is incorporated by reference for the purpose of being furnished herein and is not and shall not be deemed to be filed under the Securities Exchange Act of 1934, as amended.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters.

Information relating to security ownership of certain beneficial owners and management is incorporated by reference from our 2022 Proxy Statement under the captions "Ownership of Common Stock" and "Securities Ownership of Management."

13

Information relating to securities authorized for issuance under equity compensation plans as of December 25, 2021, is as follows:

				Number of shares
				remaining
				available for
	Number of			future issuance
	shares to be			under equity
	issued upon	Weighted average		compensation
	exercise of	exercise price of		plans [excluding
	outstanding	outstanding		shares reflected in
	options	options		column (a)] (1)
	(a)	(b)		(c)
Equity compensation plans approved by security holders	—	$	—	1,474,858
Equity compensation plans not approved by security holders	none

(1) The number of shares remaining available for future issuance under equity compensation plans, excluding outstanding options, warrants, or similar rights, as of December 25, 2021, is as follows: 456,019 shares for our Employee Stock Purchase Plan, 197,041 shares for our Directors’ Retainer Stock Plan, and 14,055 shares for our Employee Stock Gift Program. In addition, of the remaining 807,743 shares available for future issuance under our Long-Term Stock Incentive Plan, those awards may be made in the form of options as well as stock appreciation rights, restricted stock, performance shares, or other stock-based awards.

Item 13. Certain Relationships and Related Transactions, and Director Independence.

Information relating to certain relationships and related transactions, and director independence is incorporated by reference from the 2022 Proxy Statement under the captions "Election of Directors", “Affirmative Determination Regarding Director Independence and Other Matters” and "Related Party Transactions."

Item 14. Principal Accountant Fees and Services.

Information relating to the types of services rendered by our Independent Registered Public Accounting Firm and the fees paid for these services is incorporated by reference from our 2022 Proxy Statement under the caption "Independent Registered Public Accounting Firm – Disclosure of Fees.”

PART IV

Item 15. Exhibits, Financial Statement Schedules.

(a) 1.    Financial Statements. The following are incorporated by reference, under Item 8 of this report, from the 2021 Annual Report:

Management’s Report on Internal Control Over Financial Reporting

Report of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm

Consolidated Statements of Earnings and Comprehensive Income

Consolidated Statements of Shareholders’ Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

2.    Financial Statement Schedules. All schedules required by this Form 10-K Report have been omitted because they were inapplicable, included in the Consolidated Financial Statements or Notes to Consolidated Financial Statements, or otherwise not required under instructions contained in Regulation S-X.

14

3.    Exhibits. Reference is made to the Exhibit Index which is included in this Form 10-K Report.

(b) Reference is made to the Exhibit Index which is included in this Form 10-K Report.

(c) Not applicable

15

EXHIBIT INDEX

Exhibit #	Description
3	Articles of Incorporation and Bylaws.
	(a)	Registrant’s Restated and Amended Articles of Incorporation were filed as Exhibit 3.1 to a Registrant’s Current Report 8-K (dated April 27, 2017) and the same is incorporated herein by reference.
	(b)	Amended Bylaws was filed as Exhibit 3(b) to a Form 10-K, Annual Report for the year-ended December 31, 2016 (Commission file No.: 0-22684) and the same incorporated herein by reference.
4	Instruments Defining the Rights of Security Holders.
	(a)	Specimen form of Stock Certificate for Common Stock was filed as Exhibit 4(a) to a Registration Statement on Form S-1 (No. 33-69474) and the same is incorporated herein by reference.
	(b)	Description of Registrant’s Securities
10	Material Contracts.
	(a)	Form of Indemnity Agreement entered into between the Registrant and each of its directors was filed as Exhibit 10(b) to a Registration Statement on Form S-1 (No. 33-69474) and the same is incorporated herein by reference.
	*(b)	Performance Bonus Plan Summary Plan Description was filed as Exhibit 10(f) to a Form 10-K, Annual Report for the year ended December 25, 2010 (Commission file No.: 0-22684) and the same is incorporated herein by reference.
	*(c)	Universal Forest Products, Inc. Deferred Compensation Plan as amended and restated effective June 1, 2011 was filed as Exhibit 10(g) to a Form 10-K, Annual Report for the year ended December 31, 2011 (Commission file No.: 0-22684) and the same is incorporated herein by reference.
	*(d)	Executive Stock Grant Program was filed as Exhibit 10(h) to a Form 10-K, Annual Report for the year ended December 31, 2011 (Commission file No.: 0-22684) and the same is incorporated herein by reference.
	(e)(2)	Credit Agreement dated November 1, 2018 was filed as Exhibit 10(i)(2) to a Form 8-K Current Report dated November 2, 2018 and the same is incorporated herein by reference.
	(f)(1)	Note Purchase Agreement dated December 17, 2012 was filed as Exhibit 10(k) to a Form 8-K Current Report dated December 17, 2012 (Commission file No.: 0-22684) and the same is incorporated herein by reference.
	(g)(2)	Note Purchase Agreements for Series C and D Senior Notes dated June 14, 2018, was filed as Exhibit 10(k)(2) to Registrant’s Form 10-K, Annual Report for the year ended December 29, 2018 (Commission file No.: 0-22684) and the same is incorporated herein by reference.
	*(h)	Universal Forest Products, Inc. Employee Stock Purchase Plan is incorporated by reference from Appendix A to the Company’s proxy statement dated and filed with the Commission on March 9, 2018.

16

	*(i)	Universal Forest Products, Inc. Director Retainer Stock Plan was filed as Exhibit 10(m) to a Form 10-K, Annual Report for the year ended December 31, 2016 (Commission file No.: 0-22684) and the same is incorporated herein by reference.
	*(j)	Universal Forest Products, Inc. Amended and Restated Long Term Stock Incentive Plan is incorporated by reference from Appendix B to the Company’s proxy statement dated and filed with the Commission on March 9, 2018.
	(k)	Note Purchase Agreement for Series E, F, and G dated August 11, 2020 was filed as Exhibit 10(k) to a form 10-K, Annual Report for the year ended December 26, 2020 (Commission file No.: 0-22684) and the same is incorporated herein by reference.
13	Selected portions of the Company’s Annual Report to Shareholders for the fiscal year ended December 25, 2021.
14	Code of Ethics for Senior Financial Officers.
	(a)	Code of Ethics for Chief Financial Officer was filed as Exhibit 14(a) to a Form 10-K, Annual Report for the year ended December 25, 2010 and the same is incorporated herein by reference.
21	Subsidiaries of the Registrant.
23	Consent of Deloitte & Touche LLP.
31	Certifications.
	(a)	Certificate of the Chief Executive Officer of UFP Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
	(b)	Certificate of the Chief Financial Officer of UFP Industries, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
32	Certifications.
	(a)	Certificate of the Chief Executive Officer of UFP Industries, Inc., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
	(b)	Certificate of the Chief Financial Officer of UFP Industries, Inc., pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350).
101	Interactive Data File in iXBRL (Inline eXtensible Business Reporting Language).
	(INS) XBRL Instance Document.
	(SCH) XBRL Schema Document.
	(CAL) XBRL Taxonomy Extension Calculation Linkbase Document.
	(LAB) XBRL Taxonomy Extension Label Linkbase Document.
	(PRE) XBRL Taxonomy Extension Presentation Linkbase Document.
	(DEF) XBRL Taxonomy Extension Definition Linkbase Document.
104	Cover Page Interactive Data File (the cover page XBRL tags are embedded in the inline XBRL document).

17

* Indicates a compensatory arrangement.

18

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: February 23, 2022	UFP INDUSTRIES, INC.
	By:	/s/ Matthew J. Missad
		Matthew J. Missad,
		Chief Executive Officer and
		Principal Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below on this 23^rd day of February, 2022, by the following persons on behalf of us and in the capacities indicated.

By:	/s/ Matthew J. Missad
	Matthew J. Missad,
	Chief Executive Officer and
	Principal Executive Officer
	/s/ Michael R. Cole
	Michael R. Cole,
	Chief Financial Officer,
	Principal Financial Officer and
	Principal Accounting Officer

Each Director whose signature appears below hereby appoints Matthew J. Missad and Michael R. Cole, and each of them individually, as his or her attorney-in-fact to sign in his or her name and on his or her behalf as a Director, and to file with the Commission any and all amendments to this report on Form 10-K to the same extent and with the same effect as if done personally.

/s/ Joan A. Budden	/s/ William G. Currie
Joan A. Budden, Director	William G. Currie, Director
/s/ Benjamin J. McLean	/s/ Bruce A. Merino
Benjamin J. McLean, Director	Bruce A. Merino, Director
/s/ Matthew J. Missad	/s/ Thomas W. Rhodes
Matthew J. Missad, Director	Thomas W. Rhodes, Director
/s/ Mary Tuuk Karas	/s/ Brian C. Walker
Mary Tuuk Karas, Director	Brian C. Walker, Director
/s/ Michael G. Wooldridge
Michael G. Wooldridge, Director

19

EX-4.B

Exhibit 4(b)

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF

THE SECURITIES EXCHANGE ACT OF 1934

The following is a brief description of the common stock of UFP Industries, Inc. (the “Company”). This summary does not purport to be complete in all respects and is subject to and qualified in its entirety by reference to the Company’s Restated and Amended Articles of Incorporation (the "Articles of Incorporation") and Amended Bylaws (the "Bylaws"), each of which are filed as exhibits to the Annual Report on Form 10-K of which this Exhibit 4(b) is a part.

Authorized Capital Stock

The Company’s authorized capital stock consists of 80,000,000 shares of common stock and 1,000,000 shares of preferred stock. As of December 25, 2021, there were no shares of preferred stock outstanding.

Dividend and Liquidation Rights

Subject to the prior rights of the holders of shares of preferred stock that may be issued and outstanding, if any, the holders of common stock are entitled to receive:

· dividends when, as, and if declared by the Company’s Board of Directors out of funds legally available for the payment of dividends; and

· in the event of dissolution of the Company, to share ratably in all assets remaining after payment of liabilities and satisfaction of the liquidation preferences, if any, of then outstanding shares of preferred stock, as provided in the Articles of Incorporation.

Voting Rights

Each holder of common stock is entitled to one vote for each share held of record on all matters presented to a vote at a shareholders meeting, including the election of directors. Holders of common stock have no cumulative voting rights.

The Company’s Articles of Incorporation provide that the Company’s Board of Directors be divided into three classes of nearly equal size, with the classes to hold office for staggered terms of three years each.

The vote required for the election of a director shall, except in a contested election, be the affirmative vote of a majority of the votes cast in the election of a nominee. For this purpose, a “majority of the votes cast” means that the number of votes cast “for” a director’s election exceeds the number of votes cast “against” that director’s election. Abstentions and broker non-votes are not counted as votes cast either “for” or “against” a director’s election. In a contested election, directors are elected by a plurality of the votes cast at the meeting of shareholders.

An election is considered contested if there are more nominees for election than positions on the Board of Directors to be filled by election at that meeting.

Listing

The Company’s common stock is currently traded on the Nasdaq Global Select Market under the symbol “ufpi.”

Applicable Anti-Takeover Provisions

The Company's Articles of Incorporation and Bylaws contain provisions that could also have an anti-takeover effect. Some of the provisions also may make it difficult for shareholders to replace incumbent directors with new directors who may be willing to entertain changes that shareholders may believe will lead to improvements in the combined company’s business.

Other

All of the outstanding shares of the Company’s common stock are fully paid and non-assessable. Holders of common stock have no preemptive rights to purchase or subscribe for any additional shares of common stock or other securities, and there are no conversion rights or redemption or sinking fund provisions with respect to the Company’s common stock.

The transfer agent for the Company’s common stock is American Stock Transfer & Trust Co., 6201 15th Avenue, Brooklyn, NY 11219.

EX-13

Exhibit 13

UFP INDUSTRIES, INC.

FINANCIAL INFORMATION

Table of Contents

Selected Financial Data	2
Management’s Discussion and Analysis of Financial Condition and Results of Operations	3
Report of Independent Registered Public Accounting Firm – Opinion on Internal Control over Financial Reporting (PCAOB ID 34)	22
Report of Independent Registered Public Accounting Firm – Opinion on the Financial Statements (PCAOB ID 34)	23
Consolidated Balance Sheets as of December 25, 2021 and December 26, 2020	25
Consolidated Statements of Earnings and Comprehensive Income for the Years Ended December 25, 2021, December 26, 2020, and December 28, 2019	26
Consolidated Statements of Shareholders’ Equity for the Years Ended December 25, 2021, December 26, 2020, and December 28, 2019	27
Consolidated Statements of Cash Flows for the Years Ended December 25, 2021, December 26, 2020, and December 28, 2019	28
Notes to Consolidated Financial Statements	29
Market Information for our Common Stock	55
Stock Performance Graph	55
Directors and Executive Officers	56
Shareholder Information	57

SELECTED FINANCIAL DATA

(In thousands, except per share and statistics data)

	2021			2020				2019			2018			2017
Consolidated Statement of Earnings Data
Net sales	$	8,636,134		$	5,153,998		$	4,416,009		$	4,489,180		$	3,941,182
Gross profit		1,406,967			800,296			685,518			592,894			542,826
Earnings from operations		737,554			345,826			244,906			207,263			181,469
Earnings before income taxes		726,336			340,983			240,674			197,853			176,007
Net earnings attributable to controlling interest	$	535,640		$	246,778		$	179,650		$	148,598		$	119,512
Diluted earnings per share	$	8.59		$	4.00		$	2.91		$	2.40		$	1.94
Dividends per share	$	0.65		$	0.50		$	0.40		$	0.36		$	0.32
Consolidated Balance Sheet Data
Working capital(1)	$	1,297,434		$	1,074,613		$	739,030		$	685,108		$	560,241
Cash and cash equivalents		286,662			436,507			168,336			27,316			28,339
Total assets		3,245,271			2,404,891			1,889,477			1,647,548			1,464,677
Total debt		320,250			311,707			163,683			202,278			146,003
Shareholders’ equity		2,016,569			1,483,152			1,257,733			1,088,684			974,023
Statistics
Gross profit as a percentage of net sales		16.3	%		15.5	%		15.5	%		13.2	%		13.8	%
Net earnings attributable to controlling interest as a percentage of net sales		6.2	%		4.8	%		4.1	%		3.3	%		3.0	%
Return on beginning equity(2)		36.1	%		19.6	%		16.5	%		15.3	%		13.9	%
Current ratio(4)		2.67			3.32			3.09			3.21			2.85
Debt to equity ratio(5)		0.16			0.21			0.13			0.19			0.15
Book value per common share(3)	$	32.58		$	24.23		$	20.48		$	17.88		$	15.92

(1) Current assets less current liabilities.

(2) Net earnings attributable to controlling interest divided by beginning shareholders’ equity.

(3) Shareholders’ equity divided by common stock outstanding.

(4) Current assets divided by current liabilities.

(5) Total debt divided by shareholders’ equity.

Acquisition growth is one of the primary contributing factors to material increases over the period from 2017 to 2021. Refer to Note C under the “Notes to the Consolidated Financial Statements” for further discussion on our business combinations and impact on our financial statements for the three years ended December 25, 2021.

2

UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

UFP Industries, Inc. is a holding company with subsidiaries throughout North America, Europe, Asia, and Australia that design, manufacture, and supply products made from wood, wood and non-wood composites, and other materials to three markets: retail, industrial, and construction. We are headquartered in Grand Rapids, Mich. For more information about UFP Industries, Inc., or its affiliated operations, go to www.ufpi.com.

This report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act, as amended, that are based on management’s beliefs, assumptions, current expectations, estimates and projections about the markets we serve, the economy and the Company itself. Words like “anticipates,” “believes,” “confident,” “estimates,” “expects,” “forecasts,” “likely,” “plans,” “projects,” “should,” variations of such words, and similar expressions identify such forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties and assumptions that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. We do not undertake to update forward-looking statements to reflect facts, circumstances, events, or assumptions that occur after the date the forward-looking statements are made. Actual results could differ materially from those included in such forward-looking statements. Investors are cautioned that all forward-looking statements involve risks and uncertainty. Among the factors that could cause actual results to differ materially from forward-looking statements are the following: fluctuations in the price of lumber; adverse or unusual weather conditions; adverse economic conditions in the markets we serve; government regulations, particularly involving environmental and safety regulations, the COVID-19 pandemic (“pandemic”); and our ability to make successful business acquisitions. Certain of these risk factors as well as other risk factors and additional information are included in our reports on Form 10-K and 10-Q on file with the Securities and Exchange Commission. We are pleased to present this overview of 2021.

OVERVIEW

Our results for 2021 were impacted by the following:

● Our net sales increased 68% in 2021 due to a 40% increase in our overall selling prices (see “Historical Lumber Prices”), a 24% increase in unit sales due to acquired businesses, and a 4% increase in organic unit sales. Organic unit growth of 14% and 5% in our construction and industrial segments, respectively, was offset by an organic unit decline of 4% in our retail segment.

● Earnings from operations increased 113.3% to $737.6 million. This increase resulted from a variety of factors including strong demand in our industrial and construction segments and leveraging our fixed costs, increased sales of value-added and new products that have higher margins, and increased selling prices as we improve our ability to execute value-based pricing initiatives. Acquisitions contributed approximately $50.5 million to our increase in operating profits. Excluding the impact of acquisitions, we estimate that value-added products contributed $367.1 million to the increase in gross profits and commodity-based products contributed $139.2 million.

● Our cash flows provided by operations in 2021 was $512.5 million compared to $336.5 million in 2020. This increase is due primarily to an increase in our net earnings and non-cash expenses of $316.0 million, offset by an increase in our investment in net working capital of $140.0 million compared to the prior period. The increase in net working capital was due to higher year over year lumber prices, as noted in the tables below, as well as increased demand in our industrial and construction segments. PalletOne and other acquisitions also contributed to the increase in our net working capital.

● We invested $151.2 million in capital expenditures to support and grow our business and invested $476.0 million in acquired businesses.

● We returned $40.2 million to our shareholders through dividends.

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

● Our net debt (debt and cash overdraft less cash) at the end of 2021 was $50.6 million compared to net cash of $124.8 million at the end of 2020.

● Our available borrowing capacity under revolving credit facilities and cash surplus resulted in total liquidity of approximately $805 million at the end of December 2021.

HISTORICAL LUMBER PRICES

The following table presents the Random Lengths framing lumber composite price.

	Random Lengths Composite
	Average $/MBF
	2021			2020
January	$	890		$	377
February		954			402
March		1,035			420
April		1,080			358
May		1,428			394
June		1,344			455
July		690			530
August		443			716
September		412			934
October		520			826
November		585			571
December		746			643
Year-to-date average	$	844		$	552
Year-to-date percentage change		52.9	%		55.5	%

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

In addition, a Southern Yellow Pine (“SYP”) composite price, which we prepare and use, is presented below. Our purchases of this species comprise approximately 57% and 62% of total lumber purchases, excluding plywood and other panel products, for 2021 and 2020, respectively.

	Southern Yellow Pine
	Average $/MBF
	2021			2020
January	$	858		$	346
February		903			345
March		938			360
April		922			333
May		1,150			412
June		1,052			494
July		564			552
August		448			729
September		438			886
October		512			711
November		599			508
December		675			565
Year-to-date average	$	755		$	520
Year-to-date percentage change		45.2	%		42.1	%

IMPACT OF THE LUMBER MARKET ON OUR OPERATING RESULTS

We experience significant fluctuations in the cost of commodity lumber products from primary producers ("Lumber Market"). We generally price our products to pass lumber costs through to our customers so that our profitability is based on the value-added manufacturing, distribution, engineering, and other services we provide. As a result, our sales levels (and working capital requirements) are impacted by the lumber costs of our products. Lumber costs, including plywood and other panel products, were 47.7% and 51.0% of our net sales in 2021 and 2020, respectively.

Our gross margins are impacted by (1) the relative level of the Lumber Market (i.e. whether prices are higher or lower from comparative periods), and (2) the trend in the market price of lumber (i.e. whether the price of lumber is increasing or decreasing within a period or from period to period). Moreover, as explained below, our products are priced differently. Some of our products have fixed selling prices, while the selling prices of other products are indexed to the reported Lumber Market with a fixed dollar adder to cover conversion costs and profits. Consequently, the level and trend of the Lumber Market impact our products differently.

Below is a general description of the primary ways in which our products are priced.

● Products with fixed selling prices. These products include value-added products such as decking and fencing sold to retail building materials customers, as well as trusses, wall panels and other components sold to the residential construction market, and most industrial packaging and other manufactured products for industrial users. Prices for these products are generally fixed at the time of the sales quotation for a specified period of time or are based upon a specific quantity. In order to maintain margins and reduce any exposure to adverse trends in the price of component lumber products, we attempt to lock in costs with our suppliers for these sales commitments. Also, the time period and quantity limitations allow us to eventually re-price our products for changes in lumber prices from our suppliers. In 2021, strong demand and unusually high lumber market volatility has allowed us to re-price these products more frequently to protect margins.

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

● Products with selling prices indexed to the reported Lumber Market with a fixed dollar "adder" to cover conversion costs and profits. These products primarily include treated lumber, remanufactured lumber, and trusses sold to the manufactured housing industry. For these products, we estimate the customers’ needs and we carry anticipated levels of inventory. Because lumber costs are incurred in advance of final sale prices, subsequent increases or decreases in the market price of lumber impact our profitability. In other words, for these products, our margins are exposed to changes in the trend of lumber prices.  We believe our sales of these products are at their highest relative level in our second quarter, primarily due to treated lumber sold to the retail market.

The greatest risk associated with changes in the trend of lumber prices is on the following products:

● Products with significant inventory levels with low turnover rates, whose selling prices are indexed to the Lumber Market. In other words, the longer the period of time these products remain in inventory, the greater the exposure to changes in the price of lumber. This would include treated lumber, which comprises approximately 16% of our total sales. This exposure is less significant with remanufactured lumber, trusses sold to the manufactured housing market, and other similar products, due to our higher rate of inventory turnover of these products. We attempt to mitigate the risk associated with treated lumber through vendor consignment inventory programs. (Please refer to the “Risk Factors” section of our annual report on form 10-K, filed with the United States Securities and Exchange Commission.)

● Products with fixed selling prices sold under long-term supply arrangements, particularly those involving multi-family construction projects. We attempt to mitigate this risk through our purchasing practices by locking in costs or including re-pricing triggers with customers if lumber prices change in excess of an agreed upon percentage.

In addition to the impact of the Lumber Market trends on gross margins, changes in the level of the market cause fluctuations in gross margins when comparing operating results from period to period. This is explained in the following example, which assumes the price of lumber has increased from period one to period two, with no changes in the trend within each period.

	Period 1			Period 2
Lumber cost	$	300		$	400
Conversion cost		50			50
= Product cost		350			450
Adder		50			50
= Sell price	$	400		$	500
Gross margin		12.5	%		10.0	%

As is apparent from the preceding example, the level of lumber prices does not impact our overall profits but does impact our margins. Gross margins and operating margins are negatively impacted during periods of high lumber prices; conversely, we experience margin improvement when lumber prices are relatively low. As a result of this factor, we believe it is useful to compare our change in units sold with our change in gross profits, selling, general, and administrative expenses, and operating profits as presented in the following table.

	Year Ended
	December 25,		December 26,
	2021		2020
Units sold	28.0	%	6.0	%
Gross profit	75.8		16.7
Selling, general, and administrative expenses	53.5		1.3
Earnings from operations	113.3		41.2

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

It is our goal to increase our gross profits and earnings from operations at a rate of growth that exceeds our unit sales growth, or in other words, increasing our profitability per unit sold.  We also have a long-term goal of improving our efficiencies and leveraging the fixed costs in our selling, general, and administrative expenses as we grow, which will result in a rate of growth of these expenses which is less than our unit sales growth and a lower cost per unit.

BUSINESS COMBINATIONS AND ASSET PURCHASES

We completed nine business acquisitions during 2021 and five during 2020. The annual historical sales attributable to acquisitions in 2021 and 2020 were approximately $1.3 billion and $101 million, respectively. These business combinations were not significant to our operating results individually or in aggregate; consequently pro forma results for 2021 and 2020 are not presented.

On December 27, 2021, we closed on an agreement to purchase 100 percent of the equity of Ultra Aluminum Manufacturing, Inc. (Ultra) located in Howell, Michigan for approximately $26.8 million. Ultra designs and produces an extensive selection of ornamental aluminum fence and railing products for contractors, landscapers, fence dealers and wholesalers.

See Notes to Consolidated Financial Statements, Note C, "Business Combinations" and Note O, “Subsequent Events” for additional information.

RESULTS OF OPERATIONS

The following table presents, for the periods indicated, the components of our Consolidated Statements of Earnings as a percentage of net sales. See “Impact of the Lumber Market on our Operating Results”.

	Year Ended
	December 25,		December 26,
	2021		2020
Net sales	100.0	%	100.0	%
Cost of goods sold	83.7		84.5
Gross profit	16.3		15.5
Selling, general, and administrative expenses	7.9		8.6
Other (gains) losses, net	(0.1)		0.2
Earnings from operations	8.5		6.7
Other expense, net	0.1		0.1
Earnings before income taxes	8.4		6.6
Income taxes	2.0		1.7
Net earnings	6.4		4.9
Less net earnings attributable to noncontrolling interest	(0.2)		(0.1)
Net earnings attributable to controlling interest	6.2	%	4.8	%

Note: Actual percentages are calculated and may not sum to total due to rounding.

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table presents, for the periods indicated, our selling, general, and administrative (SG&A) costs as a percentage of gross profit.  Given our strategies to enhance our capabilities and improve our value-added product offering and recognizing the higher relative level of SG&A costs these strategies require, we believe this ratio provides an enhanced view of our effectiveness in managing these costs and mitigates the impact of changing lumber prices.

	Year Ended
		December 25,		December 26,
		2021		2020
Gross profit	$	1,406,967	$	800,296
Selling, general, and administrative expenses	$	682,253	$	444,596
SG&A as percentage of gross profit		48.5%		55.6%

OPERATING RESULTS BY SEGMENT

Our business segments consist of UFP Retail Solutions, UFP Industrial and UFP Construction, and align with the end markets we serve. Among other things, this structure allows for a more specialized and consistent sales approach among Company operations, more 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, Industrial, and Construction segments. The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Europe, Asia, and Australia operations and sales and buying offices in other parts of the world. Our International segment and Ardellis (our insurance captive) are 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, leases, and operates transportation equipment, are also included in the Corporate column. Inter-company lease and services charges are assessed to our operating segments for the use of these assets and services at fair market value rates.

The following tables present our operating results by segment for December 25, 2021 and December 26, 2020.

	Year Ended December 25, 2021
	Retail		Industrial		Construction		All Other		Corporate		Total
Net sales	$	3,418,337	$	2,148,142	$	2,698,434	$	362,473	$	8,748	$	8,636,134
Cost of goods sold		3,120,634		1,683,466		2,167,405		237,696		19,966		7,229,167
Gross profit		297,703		464,676		531,029		124,777		(11,218)		1,406,967
Selling, general, administrative expenses		169,033		200,194		267,292		52,204		(6,470)		682,253
Other		(94)		(456)		(493)		(2,237)		(9,560)		(12,840)
Earnings from operations	$	128,764	$	264,938	$	264,230	$	74,810	$	4,812	$	737,554

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

	Year Ended December 26, 2020
	Retail		Industrial		Construction		All Other		Corporate		Total
Net sales	$	2,167,122	$	1,072,117	$	1,695,684	$	217,094	$	1,981	$	5,153,998
Cost of goods sold		1,874,114		895,466		1,433,469		147,117		3,536		4,353,702
Gross profit		293,008		176,651		262,215		69,977		(1,555)		800,296
Selling, general, administrative expenses		137,641		97,146		179,516		34,471		(4,178)		444,596
Other		56		(3,873)		13,690		775		(774)		9,874
Earnings from operations	$	155,311	$	83,378	$	69,009	$	34,731	$	3,397	$	345,826

The following tables present the components of our operating results as a percentage of net sales by segment for December 25, 2021 and December 26, 2020.

	Year Ended December 25, 2021
	Retail		Industrial		Construction		All Other		Corporate	Total
Net sales	100.0	%	100.0	%	100.0	%	100.0	%	N/A	100.0	%
Cost of goods sold	91.3		78.4		80.3		65.6		—	83.7
Gross profit	8.7		21.6		19.7		34.4		—	16.3
Selling, general, administrative expenses	4.9		9.3		9.9		14.4		—	7.9
Other	(0.1)		—		—		(0.6)		—	(0.1)
Earnings from operations	3.8	%	12.3	%	9.8	%	20.6	%	—	8.5	%

Note: Actual percentages are calculated and may not sum to total due to rounding.

	Year Ended December 26, 2020
	Retail		Industrial		Construction		All Other		Corporate	Total
Net sales	100.0	%	100.0	%	100.0	%	100.0	%	N/A	100.0	%
Cost of goods sold	86.5		83.5		84.5		67.8		—	84.5
Gross profit	13.5		16.5		15.5		32.2		—	15.5
Selling, general, administrative expenses	6.4		9.1		10.6		15.9		—	8.6
Other	—		(0.4)		0.8		0.4		—	0.2
Earnings from operations	7.2	%	7.8	%	4.1	%	16.0	%	—	6.7	%

Note: Actual percentages are calculated and may not sum to total due to rounding.

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

NET SALES

We design, manufacture and market wood and wood-alternative products, primarily used to enhance outdoor living environments, for national home centers and other retailers; roof trusses, structural lumber and panels, and other products for the manufactured housing industry; engineered wood components for residential and commercial construction, customized interior fixtures, millwork, and casework used in a variety of retail, commercial and other structures; and structural wood packaging, other packing materials, and OEM components for various industries. Our strategic long-term sales objectives include:

● Maximizing unit sales growth while achieving return on investment goals. The following table presents estimates, for the periods indicated, of our percentage change in net sales which were attributable to changes in overall selling prices versus changes in units shipped.

	% Change
	in Sales		in Selling  Prices		in Units		Acquisition Unit Change		Organic Unit Change
2021 versus 2020	67.6	%	39.6	%	28.0	%	24.0	%	4.0	%
2020 versus 2019	16.7	%	10.7	%	6.0	%	1.0	%	5.0	%

● Diversifying our end market sales mix by increasing sales of specialty wood and protective packaging to industrial users, increasing our penetration of the concrete forming market, increasing our sales of engineered wood components for custom home, multi-family, military and light commercial construction, increasing our market share with independent retailers, and increasing our sales of customized interior fixtures, casework and millwork used in a variety of commercial markets.

● Expanding geographically in our core businesses, domestically and internationally.

● Increasing our sales of "value-added" products and enhancing our product offering with new or improved products. Value-added products generally consist of fencing, decking, lattice, and other specialty products sold to the retail segment, structural wood packaging, engineered wood components, customized interior fixtures, manufactured and assembled concrete forms, and "wood alternative" products. Engineered wood components include roof trusses, wall panels, and floor systems. Wood alternative products consist of products manufactured with wood and non-wood composites, metals and plastics. Although we consider the treatment of dimensional lumber and panels with certain chemical preservatives a value-added process, treated lumber is not presently included in the value-added sales totals. Remanufactured lumber and panels that are components of finished goods are also generally categorized as “commodity-based” products.

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following table presents, for the periods indicated, our percentage of value-added and commodity-based sales to total sales by our segments (Retail, Industrial, Construction, and All Other and Corporate).

	Year Ended December 25, 2021				Year Ended December 26, 2020
	Value-Added		Commodity-Based		Value-Added		Commodity-Based
Retail	43.2	%	56.8	%	53.8	%	46.2	%
Industrial	67.7	%	32.3	%	64.7	%	35.3	%
Construction	73.0	%	27.0	%	76.3	%	23.7	%
All Other and Corporate	74.9	%	25.1	%	75.6	%	24.4	%
Total Sales	59.7	%	40.3	%	64.3	%	35.7	%
Note: Certain prior year product reclassifications and the change in designation of certain products as "value-added" resulted in a change in prior year's sales.

The increase in our ratio of commodity-based product sales to total sales reflected in the table above is primarily due to the impact of higher average lumber prices in 2021 on sales of commodity-based products and the product mix of recently acquired businesses. Selling prices of commodity-based products are generally indexed to the current Lumber Market at the time they are shipped, and lumber costs comprise a higher percentage of the selling price than they do for value-added products. The acquisition of Sunbelt and Spartanburg also contributed to the increase in commodity-based sales of treated lumber in our retail segment, while PalletOne contributed to the increase in value-added sales in the industrial segment. Our overall unit sales of value-added products increased approximately 23% in 2021 compared to 2020, including a 16% contribution from acquisitions and 7% organic growth. Our unit sales of commodity-based products increased approximately 37%, due primarily from the acquisition of Sunbelt and Spartanburg.

● Developing new products. We define new products as those that will generate sales of at least $1 million per year within 4 years of launch and are still growing and gaining market penetration. Our goal was to achieve annual new product sales of at least $575 million in 2021. New product sales and gross profits in 2021 were up 56% and 47%, respectively, from the prior year. Acquisitions contributed approximately $48 million to new product sales in 2021. Approximately $13 million of new product sales for 2020, while still sold, were sunset in 2021 and excluded from the table below because they no longer meet the definition above. The table below presents new product sales in thousands.

	New Product Sales by Segment
	Year Ended
	December 25,		December 26,		%
	2021		2020		Change
Retail	$	510,266	$	401,539	27.1	%
Industrial		177,214		72,574	144.2	%
Construction		135,644		54,060	150.9	%
All Other and Corporate		18,735		11,451	63.6	%
Total New Product Sales	$	841,859	$	539,624	56.0	%
Note: Certain prior year product reclassifications and the change in designation of certain products as "new" resulted in a change in prior year's sales.

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Retail Segment:

Net sales to the retail segment increased 58% in 2021 compared to 2020 due to a 27% increase in selling prices and a 35% increase in unit sales from acquired operations, offset by a 4% decrease in organic unit sales. Organic unit increases of 17% of UFP Edge, 9% of Deckorators, and 5% of Outdoor Essentials, were offset by organic unit declines of 15% of ProWood and 12% of Handprint. The organic increases mentioned above were primarily due to capacity expansion and initiatives to gain market share in these product categories, while the decline in unit sales of ProWood and Handprint are attributed to a shift in consumer spending as a result of the end of pandemic-related restrictions on certain activities. In addition, new product sales increased approximately 27.1% to $510 million in 2021 compared to 2020, and the transfer of approximately $48 million in sales to the retail segment from the construction segment contributed to unit growth in retail. Finally, our sales to big box customers increased 53%, and sales to other independent retailers increased 67%.

Gross profits increased 1.6% to $298 million in 2021 compared to 2020. Our change in gross profits was attributable to the following:

● Our Retail Building Materials business unit contributed $23.2 million to the increase. The increase is primarily due to unit sales growth and rising lumber and panel prices combined with effective inventory positioning.

● Acquisitions contributed $10.4 million to the increase.

● Our UFP Edge business unit decreased by approximately $5.6 million.

● Our Deckorators, Outdoor Essentials, Handprint, and E-Commerce business units were less significant, and collectively these units contributed $2.5 million of additional gross profit.

● Our ProWood business unit decreased by $25.8 million, primarily due to the impact of falling lumber prices from June through October of 2021 on ProWood’s pressure-treated products that are sold at a variable price. Conversely, lumber prices rose during most of 2020 as a result of unexpectedly strong demand.

Selling, general and administrative (“SG&A”) expenses increased by approximately $31.4 million, or 22.8%, in 2021 compared to 2020. The SG&A of recently acquired businesses contributed approximately $19.2 million to this increase. Accrued bonus expense, which varies with our overall profitability and return on investment, decreased approximately $0.6 million and totaled approximately $34.7 million in 2021. The remaining increase was primarily due to increases in salaries and wages, sales compensation, and travel related expenses, which were partially offset by a decline in merchandising costs.

Earnings from operations of the Retail reportable segment decreased in 2021 compared to 2020 by $26.5 million, or 17.1%, as a result of the factors mentioned above.

Industrial Segment:

Net sales to the industrial segment increased 100% in 2021 compared to 2020 due to a 60% increase in selling prices attributable to the Lumber Market and favorable sales mix changes, a 5% increase in organic unit sales and a 35% increase in unit sales from recent acquisitions.

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Gross profits increased by $288.0 million, or 163%, to $464.7 million in 2021 compared to 2020.  Acquisitions contributed $81.0 million to the increase in gross profit. The remaining increase was primarily due to organic unit sales growth and leveraging fixed costs, value-based pricing initiatives resulting in an increase in our selling prices, and favorable changes in our sales mix of value-added products. Additionally, in 2021, strong demand and unusually high lumber market volatility has allowed us to re-price our products more frequently to protect margins.

Selling, general and administrative (“SG&A”) expenses increased by approximately $103.0 million, or 106.1%, in 2021 compared to 2020. Acquired operations in 2021 contributed approximately $23.0 million to total SG&A expenses. Accrued bonus expense increased approximately $52.3 million compared to last year and totaled approximately $71.1 million for 2021. The remaining increase was primarily due to increases in salaries and wages and sales incentive compensation.

Earnings from operations of the Industrial reportable segment in 2021 increased by $181.6 million, or 217.8%, compared to 2020 due to the factors discussed above.

Construction Segment:

Net sales to the construction segment increased 59% in 2021 compared to 2020 due to a 42% increase in selling prices, organic unit sales growth of 14%, and 3% growth from acquisitions. The organic unit increase was comprised of a 25% increase in factory-built housing, a 15% in site-built housing, and a 15% in commercial construction. These increases were offset by a unit decline of 30% in concrete forming. As discussed above, the transfer of $48 million in sales to the retail segment contributed to the unit decline in the concrete forming business unit.

Gross profits increased by $268.8 million, or 102.5% to $531.0 million in 2021 compared to 2020. The increase in our gross profit was comprised of the following factors:

● Our site-built housing business unit increased by $157.4 million due to unit sales growth and leveraging fixed costs and higher selling prices. Additionally, in 2021, strong demand and unusually high lumber market volatility has allowed us to re-price our products more frequently to protect margins.

● Our factory-built housing business unit increased by $79.8 million as a result of increased unit sales and leveraging fixed costs and favorable trends in lumber prices. Commodity-based and value-added products increased $34 million and $39 million, respectively.

● Our commercial business unit increased $19.1 million as a result of an increase in unit sales, better productivity due to efforts to reduce our capacity to align with the current level of demand, increases in selling prices, and other operational improvements.

● Acquired businesses contributed $6.3 million.

● Our concrete forming business unit increased $6.2 million.

SG&A expenses increased by approximately $87.8 million, or 48.9%, in 2021 compared to 2020. Acquired operations in 2021 contributed approximately $5.8 million to total SG&A expenses. Accrued bonus expense increased approximately $52.2 million compared to last year and totaled approximately $70.8 million for 2021. The remaining increase was primarily due to the $11.5 million Goodwill impairment in the prior year and increases in salaries and wages, sales incentive compensation, and travel related expenses in the current year.

Earnings from operations of the Construction reportable segment increased in 2021 compared to 2020 by $195.2 million, or 282.9%, due to the factors mentioned above.

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UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

All Other Segment:

Our All Other reportable segment consists of our International and Ardellis (our insurance captive) segments that are not significant to our overall results.

Corporate:

The corporate segment primarily consists of net sales and gross profits on sales to external customers initiated by UFP Purchasing and UFP Transportation and over (under) allocated costs that are not significant

INTEREST EXPENSE

Interest expense increased in 2021 compared to 2020, due primarily to an increase in borrowings to fund current year acquisitions and increases in net working capital.  See “Note C of Notes to the Consolidated Financial Statements”.

INCOME TAXES

Effective tax rates differ from statutory federal income tax rates, primarily due to provisions for state and local income taxes, and permanent tax differences. Our effective tax rate was 23.9% in 2021 compared to 25.5% in 2020. The decrease was primarily due to a reduction in certain permanent tax differences compared to the prior year, none of which are individually significant, non-deductible goodwill impairment expense recorded in 2020, and a valuation allowance recorded in 2020 against deferred tax assets related to net operating loss carryforwards of foreign subsidiaries in our commercial business unit totaling approximately $3.6 million.

OFF-BALANCE SHEET COMMITMENTS AND CONTRACTUAL OBLIGATIONS

We have no significant off-balance sheet commitments. The following table summarizes our contractual obligations as of December 25, 2021 (in thousands).

	Payments Due by Period
	Less than		1 – 3		3 – 5		After
Contractual Obligation	1 Year		Years		Years		5 Years		Total
Long-term debt and finance lease obligations	$	42,649	$	49,048	$	285	$	228,268	$	320,250
Estimated interest on long-term debt and finance lease obligations		11,214		18,959		15,657		41,064		86,894
Operating leases		26,378		36,882		24,304		27,123		114,687
Capital project purchase obligations		78,234		—		—		—		78,234
Total	$	158,475	$	104,889	$	40,246	$	296,455	$	600,065

As of December 25, 2021, we also had $54.2 million in outstanding letters of credit issued during the normal course of business, as required by some vendor contracts.

14

UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

LIQUIDITY AND CAPITAL RESOURCES

The table below presents, for the periods indicated, a summary of our cash flow statement (in thousands):

	December 25,		December 26,
	2021		2020
Cash from operating activities	$	512,477	$	336,477
Cash used in investing activities		(611,187)		(154,718)
Cash from (used in) financing activities		(45,006)		85,221
Effect of exchange rate changes on cash		(1,669)		962
Net change in cash and cash equivalents		(145,385)		267,942
Cash, cash equivalents, and restricted cash, beginning of year		436,608		168,666
Cash, cash equivalents, and restricted cash, end of year	$	291,223	$	436,608

In general, we fund our growth through a combination of operating cash flows, our revolving credit facility, industrial development bonds (when circumstances permit), and issuance of long-term notes payable at times when interest rates are favorable. We have not issued equity to finance growth except in the case of a large acquisition. We manage our capital structure by attempting to maintain a targeted ratio of debt to equity and debt to earnings before interest, taxes, depreciation and amortization. We believe these financial ratios are among many other important factors to maintaining a strong credit profile, which in turn helps ensure timely access to capital when needed.

Seasonality has a significant impact on our working capital due to our primary selling season which occurs during the period from March to September. Consequently, our working capital increases during our first and second quarters resulting in negative or modest cash flows from operations during those periods. Conversely, we experience a substantial decrease in working capital once we move beyond our peak selling season which typically results in significant cash flows from operations in our third and fourth quarters. As explained in more detail below, the unusually large increase in lumber prices this year, as well as the significant increase in sales, resulted in a more significant increase in net working capital this year relative to prior years.

Due to the seasonality of our business and the effects of the Lumber Market, we believe our cash cycle (days sales are outstanding plus days supply of inventory less days payables are outstanding) is a good indicator of our working capital management. As indicated in the table below, our cash cycle increased to 57 days in 2021 from 48 days in 2020.

	Twelve Months Ended
	December 25,		December 26,
	2021		2020
Days of sales outstanding		34		32
Days supply of inventory		43		36
Days payables outstanding		(20)		(20)
Days in cash cycle		57		48

The increase in our days of sales outstanding and days supply of inventory in 2021 was primarily due to PalletOne and other acquisitions. Lower retail demand than our customers anticipated from our inventory planning also contributed to our days supply of inventory.

15

UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our cash flows from operating activities in 2021 was $512.5 million, which was comprised of net earnings of $552.4 million and $114.8 million of non-cash expenses, offset by a $12.0 million gain on sale of assets and $142.7 million increase in working capital since the end of December 2020. The increase in our working capital was due to higher year over year lumber prices and increased demand in our industrial and construction segments. Comparatively, cash generated from operating activities was approximately $336.5 million in 2020, which was comprised of net earnings of $253.9 million, $85.3 million of non-cash expenses (including $11.5 million of goodwill impairment charges), and a $2.7 million increase in working capital since the end of December 2019.  

Our cash used in investing activities during 2021 was $611.2 million, reflecting purchases of property, plant, and equipment totaling $151.2 million and business acquisitions totaling $476.0 million. See “Note C of Notes to the Consolidated Financial Statements”. Our outstanding purchase commitments on existing capital projects totaled approximately $52.7 million on December 25, 2021. Capital spending primarily consists of several projects to expand capacity to manufacture new and value-added products, achieve efficiencies through automation, make improvements to a number of facilities, and increase our transportation capacity (tractors, trailers) in order to meet higher volumes and replace old rolling stock. Notable areas of capital spending include projects to:

● Increase the capacity and efficiency of our plants that produce our Deckorators mineral-based composite and wood-plastic composite decking,

● Expand our capacity to produce UFP Edge siding, pattern and trim products, machine-built pallets, engineered wood and metal components for site-built construction, and

● Invest in automation opportunities.

Finally, we sold property, plants, and equipment for proceeds of $30.0 million, consisting of $21 million from the sale of real estate and $9 million from the sale of equipment. The sale and purchase of investments totaling $14.9 million and $23.8 million, respectively, are due to investment activity in our captive insurance subsidiary.

Cash flows used in financing activities during 2021 primarily consisted of the payment of quarterly dividends totaling $40.2 million and distributions to noncontrolling interests of $6.8 million. Comparatively in 2020, cash flows from financing activities primarily consisted of proceeds of $150.0 million from the issuance of Senior E, F and G Notes in order to take advantage of lower interest rates, $30.7 million in dividend payments, and $29.2 million in share repurchases when our stock price declined as a result of the pandemic. The increase in our dividends is primarily due to an increase in the rates our board approved as a result of our growth in earnings and operating cash flow.

On November 1, 2018, we entered into a five-year, $375 million unsecured revolving credit facility with a syndicate of U.S. and Canadian banks led by JPMorgan Chase Bank, N.A., as administrative agent and Wells Fargo Bank, N.A., as syndication agent.  The facilities include up to $40 million which may be advanced in the form of letters of credit, and up to $100 million (U.S. dollar equivalent) which may be advanced in Canadian dollars, Australian dollars, pounds Sterling, Euros and such other foreign currencies as may subsequently be agreed upon among the parties. On February 19, 2021, the credit agreement was amended to increase the availability from $375 million to $550 million by exercising the accordion feature in the original agreement.

On August 10, 2020, we entered into an unsecured Note Purchase Agreement (the "Agreement") under which we issued our 3.04% Series 2020 E Senior Notes, due August 10, 2032, in the aggregate principal amount of $50 million, our 3.08% Series 2020 F Senior Notes, due August 10, 2033, in the aggregate principal amount of $50 million, and our 3.15% Series 2020 G Senior Notes, due August 10, 2035, in the aggregate principal amount of $50 million. Proceeds from the sale of the Series E, F and G Senior Notes were used to fund the acquisition of PalletOne.

16

UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

On December 25, 2021, we had $7.8 million outstanding on our $550 million revolving credit facility, and we had approximately $535.1 million in remaining availability after considering $7.1 million in outstanding letters of credit.  Financial covenants on the unsecured revolving credit facility and unsecured notes include minimum interest tests and a maximum leverage ratio. The agreements also restrict the amount of additional indebtedness we may incur and the amount of assets which may be sold. We were in compliance with all our covenant requirements on December 25, 2021.

ENVIRONMENTAL CONSIDERATIONS AND REGULATIONS

See Notes to Consolidated Financial Statements, Note L, “Commitments, Contingencies, and Guarantees”.

CRITICAL ACCOUNTING POLICIES

In preparing our consolidated financial statements, we follow accounting principles generally accepted in the United States. These principles require us to make certain estimates and apply judgments that affect our financial position and results of operations. We continually review our accounting policies and financial information disclosures. Following is a summary of our more significant accounting policies that require the use of estimates and judgments in preparing the financial statements.

GOODWILL

We evaluate goodwill for indicators of impairment when events or circumstances indicate that this risk may be present. Our judgments regarding the existence of impairment are based on market conditions, operational performance and estimated future cash flows. Determining whether an impairment has occurred requires the valuation of the respective reporting unit, which we have consistently estimated using primarily a weighted average between income and market valuation approaches. We believe this approach is the most appropriate and accurate method to measure the fair value of our intangible assets. We use discounted cash flow analysis with the following assumption:  a business is worth today what it can generate in future cash flows; cash received today is worth more than an equal amount of cash received in the future; and future cash flows can be reasonably estimated. The discounted cash flow analysis is based on the present value of projected cash flows and residual values.

If the carrying value of goodwill is considered impaired, an impairment charge is recorded to adjust it to its fair value. Changes in forecasted operations and changes in discount rates can materially affect these estimates. In addition, we test goodwill annually for impairment or more frequently if changes in circumstances or the occurrence of other events suggest impairments exist. The test for impairment requires us to make several estimates about fair value, most of which are based on projected future cash flows and market valuation multiples. Changes in these estimates may result in the recognition of an impairment loss.

On our annual testing date of September 25, 2021, the fair values exceed the carrying values for each of the Company’s reporting units. There were no indicators for impairment for any of the reporting units. We believe we have sufficient available information, both current and historical, to support our assumptions, judgments and estimates used in the goodwill impairment test.

In the prior year, we experienced significantly lower than expected operating results within our commercial reporting unit, which is within the Construction segment.  It was determined that the carrying value of the reporting unit exceeded its fair value and we recorded a non-cash goodwill impairment charge of $11.5 million as of  December 26, 2020, which represented the entire amount of the goodwill recorded within the reporting unit, as a result.

17

UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

REVENUE RECOGNITION

Revenue for product sales is recognized at the time the performance obligation is satisfied, which is primarily when the goods are delivered to the carrier, Free On Board (FOB) shipping point.  Generally, title passes at the time of shipment. In certain circumstances, the customer takes title when the shipment arrives at the destination. However, our shipping process is typically completed the same day.

Performance on construction contracts is reflected in operations using over time accounting, under either the cost to cost or units of delivery methods, depending on the nature of the business at individual operations. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred related to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced related to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent.

Our construction contracts are generally entered into with a fixed price and completion of the projects can range from 6 to 18 months in duration. Therefore, our operating results are impacted by, among many other things, labor rates and commodity costs. During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist.

FORWARD OUTLOOK

GOALS

Our long-term objectives include:

● Growing our annual unit sales by 5 to 7 percent. We anticipate smaller tuck-in acquisitions will contribute toward this goal;

● Achieving and sustaining a 10 percent EBITDA margin by continuing to enhance our capabilities and grow our portfolio of value-added products as well as growth of our portfolio of value-added products;

● Earning an incremental return on new investment over our cost of capital, and;

● Maintaining a conservative capital structure.

RETAIL SEGMENT

The Home Improvement Research Institute (“HIRI”) anticipates growth in home improvement spending and has forecasted a 3.1% compounded annual growth rate through 2024. Most recently, large “big box” customers like The Home Depot and Lowes have cautioned that they cannot predict if pandemic driven demand trends will continue. The Home Depot has stated that if the demand environment during the last half of 2021 were to persist through the current year, it would imply slightly positive sales growth in 2022. Lowe’s has forecasted a decline of 1% to an increase of 1% in comparable sales in 2022. Sales of our Retail Solutions segment comprised approximately 39.6% of our annual sales in 2021.

We continue to compete for market share for certain retail customers and face intense pricing pressure from other suppliers to this market.

18

UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Our long-term goal is to achieve sales growth by:

● Increasing our market share of value-added products, including our Deckorators, Edge, Outdoor Essentials and Handprint product lines. Continued investment in capacity for Deckorators and Edge is expected to contribute to this increase.

● Developing new products and increasing our emphasis on product innovation and product differentiation in order to counter commoditization trends and influences.

● Acquiring businesses in core product categories when those opportunities exist.

● Adding new products and customers through strategic business acquisitions or alliances.

INDUSTRIAL SEGMENT

Our goal is to increase our sales of wood, wood alternative, and protective packaging products to a wide variety of industrial customers and manufactured wood components for OEM users. We believe the vast amount of hardwood and softwood lumber consumed for industrial applications, combined with the highly fragmented nature of this market, provides us with market share growth opportunities as a result of our competitive advantages in manufacturing, purchasing, and material utilization. In addition, purchasers of packaging products with a wide geographic footprint increasingly desire to reduce the number of suppliers they buy from, which provides an opportunity to gain market share due to our international presence.  We plan to continue to obtain market share by expanding our manufacturing capacity, enhancing our capabilities and product offerings to enhance the solutions we offer our customers, and improving our ability to serve large regional and international customers in targeted markets. We plan to continue to pursue acquisition opportunities that meet our strategic criteria and help us meet these objectives. As discussed previously, the recently implemented reorganization of our business is intended to promote revenue growth through the introduction of new products, including protective and other packaging materials, and enhanced expertise in this market as well as improved earnings through more efficient use of our people, resources and capital.

Market indicators that should be considered when evaluating future demand for our products in the industrial segment include industrial production and the Purchasing Managers Index. Industrial Production in the United States is estimated to stand at 0.9% in 2022. The Purchasing Managers Index is projected to trend around 56 points in 2023 and 52.4 points in 2024. Sales in this segment comprised approximately 24.9% of our annual sales in 2021.

CONSTRUCTION SEGMENT

The National Association of Home Builders forecasts a 3.0% increase in manufactured home shipments in 2022 followed by a 1.0% increase in 2023. We currently supply approximately 45.0% of the trusses used in manufactured housing and we will strive to maintain our market share of trusses produced for this market. Sales of our Factory Built business unit within our Construction segment comprised approximately 12.7% of our annual sales in 2021.

The Mortgage Bankers Association of America forecasts a 5.0% increase in national housing starts to an estimated 1.7 million starts in 2022. The National Association of Home Builders forecasts starts of $1.6 million, a 3.0% increase from 2021. We believe we are well-positioned to capture our share of any increase that may occur in housing starts in the regions we operate, which is primarily Texas, Colorado, the mid-Atlantic states, and the Northeast. However, due to our conservative approach to adding capacity to serve this market and focus on managing potential channel conflicts with certain customers, our growth may trail the market in future years. Sales of our Site Built business unit within our Construction segment comprised approximately 13.8% of our annual sales in 2021.

19

UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Non-residential construction spending is a market indicator that should be considered when evaluating future demand for our products in our Commercial and Concrete Forming business units within our Construction segment. Sales in these business units comprised approximately 3.0% and 1.7%, respectively, of our annual sales in 2021.

GROSS PROFIT

We believe the following factors may impact our gross profits and margins in the future:

● End market demand and our ability to grow and leverage fixed costs and price our products based on the value we offer our customers.

● The effective implementation of our strategy to focus and manage our operations around the markets we serve.

● Our ability to maintain market share and gross margins on products sold to our largest customers. We believe our level of service, geographic diversity, and quality of products provides an added value to our customers. However, if our customers are unwilling to pay for these advantages, our sales and gross margins may be reduced.

● Sales mix of value-added and commodity products.

● Fluctuations in the relative level of the Lumber Market and trends in the market price of lumber. (See "Impact of the Lumber Market on our Operating Results.")

● Fuel and transportation costs.

● Rising labor and benefit costs.

● Our ability to continue to achieve productivity improvements as our unit sales increase and planned cost reductions through continuous improvement activities, automation, and other initiatives.

● Changes in corporate income tax rates and the cost of complying with new or increased government regulations.

SELLING, GENERAL, AND ADMINISTRATIVE EXPENSES

In recent years, selling, general and administrative (SG&A) expenses have increased due to acquisitions and added personnel hired to take advantage of growth opportunities and execute our initiatives intended to increase our sales of new products and improve our sales mix of value-added products. We anticipate our trend of increases in these costs will continue in 2022; however, our objective is to reduce these costs on a per unit basis and as a percentage of gross profits as we grow through the improved productivity of our people and as a result of fixed costs. In addition, bonus and other incentive expenses for all salaried and sales employees is based on our profitability and the effective management of our assets and will continue to fluctuate based on our results. See Note H — Common Stock for discussion of future compensation costs related to long-term share-based bonus awards.

On a long-term basis, we expect that our SG&A expenses will primarily be impacted by:

● Our growth in sales to the industrial and the construction segments.  Our sales to these segments require a higher ratio of SG&A costs due, in part, to product design and engineering requirements.

20

UFP INDUSTRIES, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

● Sales of new products and value-added, branded products to the retail segment, which generally require higher product development, marketing, advertising, and other selling costs.

● Our incentive compensation programs which are tied to gross profits, pre-bonus earnings from operations and return on investment.

● Our growth and success in achieving continuous improvement objectives designed to improve our productivity and leverage our fixed costs as we grow.

LIQUIDITY AND CAPITAL RESOURCES

Our cash cycle will continue to be impacted in the future by our mix of sales by market. Sales to our construction and industrial segments require a greater investment in working capital than sales to our retail segment. Additionally, our net investment in trade receivables, inventory, and accounts payable will continue to be impacted by the level of lumber prices.

Additionally, we expect to spend between $175 million to $225 million on capital expenditures, incur depreciation of approximately $98 million, and incur amortization and other non-cash expenses of approximately $20 million in 2022.

On December 25, 2021, we had outstanding purchase commitments on capital projects of approximately $52.7 million. We intend to fund capital expenditures and purchase commitments through our operating cash flows and availability under our revolving credit facility which is considered sufficient to meet these commitments and working capital needs.

Our dividend rates are reviewed and approved at each of our January, April, July, and October board meetings and payments are made in March, June, September, and December of each year. Our board considers our dividend yield, payout ratios relative to earnings and operating cash flow, and potential variability of future results, among other factors, as part of its decision-making process.

We have a share repurchase program approved by our Board of Directors, and as of February 15, 2022, we have remaining authorization to buy back approximately 2.6 million shares. In the past, we have repurchased shares in order to offset the effect of issuances resulting from our employee benefit plans and at opportune times when our stock price falls to predetermined levels.

21

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of UFP Industries, Inc.

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of UFP Industries, Inc. and subsidiaries (the “Company”) as of December 25, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 25, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated financial statements as of and for the year ended December 25, 2021, of the Company and our report dated February 23, 2022, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte & Touche LLP

Grand Rapids, Michigan   

February 23, 2022

22

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of UFP Industries, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of UFP Industries, Inc. and subsidiaries (the "Company") as of December 25, 2021 and December 26, 2020, the related consolidated statements of earnings and comprehensive income, shareholders' equity, and cash flows, for each of the three years in the period ended December 25, 2021, and the related notes (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 25, 2021 and December 26, 2020, and the results of its operations and its cash flows for each of the three years in the period ended December 25, 2021, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 25, 2021, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 23, 2022, expressed an unqualified opinion on the Company's internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current-period audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Purchase Accounting for the PalletOne, Inc. Acquisition – Refer to C to the financial statements

Critical Audit Matter Description

On December 28, 2020, the Company acquired PalletOne, Inc. for $259 million. The transaction was accounted for using the purchase price method of accounting. The purchase price, including capitalized acquisition-related costs, was allocated based on the relative fair value of the assets acquired and liabilities assumed, which were determined using valuation information obtained from published market data, an external valuation specialist for certain acquired assets, and the Company’s historical knowledge of acquiring comparable assets and liabilities.

23

We identified the acquisition of PalletOne, Inc. as a critical audit matter because of the estimates management makes to determine the relative fair value of the assets acquired and liabilities assumed. This required auditor judgement and an increased extent of audit effort, including the use of our fair value specialists for the valuation of the real, tangible, and intangible assets.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the relative fair value of the assets acquired and liabilities assumed of PalletOne, Inc. included the following, among others:

● We assessed the knowledge, skill, ability, and objectivity of management’s valuation group and evaluated the work performed.

● With the assistance of our fair valuation specialists, we evaluated the reasonableness of the (1) valuation methodology for the real, personal, and intangible property and (2) discount rate of the intangible property by:

- Testing the assumptions used considering the past performance of each acquired company and the Company’s strategic plan going forward.

- Testing the source information underlying the determination of the discount rate and testing the mathematical accuracy of the calculation.

- Developing a range of independent estimates of the discount rate and comparing to the discount rate utilized by management.

● Evaluated management’s use of experts related to the valuation of certain acquired assets including qualifications and methodology.

/s/ Deloitte & Touche LLP

Grand Rapids, Michigan  

February 23, 2022

We have served as the Company's auditor since 2014.

24

UFP INDUSTRIES, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)
	December 25,		December 26,
	2021		2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	286,662	$	436,507
Restricted cash		4,561		101
Investments		36,495		24,308
Accounts receivable, net		737,805		470,504
Inventories:
Raw materials		416,043		316,481
Finished goods		547,277		250,813
Total inventories		963,320		567,294
Refundable income taxes		4,806		5,836
Other current assets		39,827		33,812
TOTAL CURRENT ASSETS		2,073,476		1,538,362
DEFERRED INCOME TAXES		3,462		2,413
RESTRICTED INVESTMENTS		19,310		17,565
RIGHT OF USE ASSETS		96,703		77,245
OTHER ASSETS		31,876		20,298
GOODWILL		315,038		252,193
INDEFINITE-LIVED INTANGIBLE ASSETS		7,369		7,401
OTHER INTANGIBLE ASSETS, NET		109,017		72,252
PROPERTY, PLANT AND EQUIPMENT:
Land and improvements		163,289		128,301
Building and improvements		329,698		272,864
Machinery and equipment		632,864		525,542
Furniture and fixtures		24,063		21,110
Construction in progress		62,199		26,680
PROPERTY, PLANT AND EQUIPMENT, GROSS		1,212,113		974,497
Less accumulated depreciation and amortization		(623,093)		(557,335)
PROPERTY, PLANT AND EQUIPMENT, NET		589,020		417,162
TOTAL ASSETS	$	3,245,271	$	2,404,891
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Cash overdraft	$	17,030	$	—
Accounts payable		319,125		211,518
Accrued liabilities:
Compensation and benefits		289,196		166,478
Other		84,853		69,104
Current portion of lease liability		23,155		16,549
Current portion of long-term debt		42,683		100
TOTAL CURRENT LIABILITIES		776,042		463,749
LONG-TERM DEBT		277,567		311,607
LEASE LIABILITY		76,632		61,509
DEFERRED INCOME TAXES		60,964		25,266
OTHER LIABILITIES		37,497		59,608
TOTAL LIABILITIES		1,228,702		921,739
SHAREHOLDERS’ EQUITY:
Controlling interest shareholders’ equity:
Preferred stock, no par value; shares authorized 1,000,000; issued and outstanding, none	$	—	$	—
Common stock, $1 par value; shares authorized 80,000,000; issued and outstanding, 61,901,851 and 61,205,780		61,902		61,206
Additional paid-in capital		243,995		218,224
Retained earnings		1,678,121		1,182,680
Accumulated other comprehensive loss		(5,405)		(1,794)
Total controlling interest shareholders’ equity		1,978,613		1,460,316
Noncontrolling interest		37,956		22,836
TOTAL SHAREHOLDERS’ EQUITY		2,016,569		1,483,152
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	3,245,271	$	2,404,891

See notes to consolidated financial statements.

25

UFP INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME

(in thousands, except per share data)
	Year Ended
	December 25,		December 26,		December 28,
	2021		2020		2019
NET SALES	$	8,636,134	$	5,153,998	$	4,416,009
COST OF GOODS SOLD		7,229,167		4,353,702		3,730,491
GROSS PROFIT		1,406,967		800,296		685,518
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		682,253		444,596		439,047
OTHER (GAINS) LOSSES, NET		(12,840)		9,874		1,565
EARNINGS FROM OPERATIONS		737,554		345,826		244,906
INTEREST EXPENSE		13,814		9,311		8,700
INTEREST AND INVESTMENT INCOME		(6,498)		(4,468)		(4,468)
EQUITY IN EARNINGS OF INVESTEE		3,902		—		—
		11,218		4,843		4,232
EARNINGS BEFORE INCOME TAXES		726,336		340,983		240,674
INCOME TAXES		173,972		87,101		58,270
NET EARNINGS		552,364		253,882		182,404
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST		(16,724)		(7,104)		(2,754)
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST	$	535,640	$	246,778	$	179,650
EARNINGS PER SHARE – BASIC	$	8.61	$	4.00	$	2.91
EARNINGS PER SHARE – DILUTED	$	8.59	$	4.00	$	2.91
OTHER COMPREHENSIVE INCOME:
NET EARNINGS		552,364		253,882		182,404
OTHER COMPREHENSIVE GAIN (LOSS)		(5,296)		5,967		1,513
COMPREHENSIVE INCOME		547,068		259,849		183,917
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST		(15,039)		(9,976)		(3,218)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST	$	532,029	$	249,873	$	180,699

See notes to consolidated financial statements.

26

UFP INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in thousands, except share and per share data)
	Controlling Interest Shareholders’ Equity
							Accumulated
			Additional				Other
	Common		Paid-In		Retained		Comprehensive		Noncontrolling
	Stock		Capital		Earnings		Earnings		Interest		Total
Balance on December 29, 2018	$	60,884	$	178,540	$	839,917	$	(5,938)	$	15,281	$	1,088,684
Net earnings						179,650				2,754		182,404
Foreign currency translation adjustment								568		464		1,032
Unrealized gain (loss) on investment & foreign currency								481				481
Distributions to noncontrolling interest										(2,143)		(2,143)
Additional purchase of noncontrolling interest				(4,737)						(2,338)		(7,075)
Cash dividends - $0.40 per share						(24,549)						(24,549)
Issuance of 33,647 shares under employee stock purchase plan		34		1,059								1,093
Issuance of 309,628 shares under stock grant programs		310		5,654		4						5,968
Issuance of 181,565 shares under deferred compensation plan		181		(181)								—
Expense associated with share-based compensation arrangements				3,843								3,843
Accrued expense under deferred compensation plans				7,995								7,995
Balance on December 28, 2019	$	61,409	$	192,173	$	995,022	$	(4,889)	$	14,018	$	1,257,733
Net earnings						246,778				7,104		253,882
Foreign currency translation adjustment								1,373		2,872		4,245
Unrealized gain on debt securities								1,722				1,722
Distributions to noncontrolling interest										(933)		(933)
Noncontrolling interest related to business combinations				130						(225)		(95)
Cash dividends - $0.50 per share						(30,669)						(30,669)
Issuance of 35,133 shares under employee stock purchase plan		35		1,360								1,395
Issuance of 390,720 shares under stock grant programs		390		12,140		5						12,535
Issuance of 127,735 shares under deferred compensation plan		128		(128)								—
Repurchase of 756,397 shares		(756)				(28,456)						(29,212)
Expense associated with share-based compensation arrangements				3,905								3,905
Accrued expense under deferred compensation plans				8,644								8,644
Balance on December 26, 2020	$	61,206	$	218,224	$	1,182,680	$	(1,794)	$	22,836	$	1,483,152
Net earnings						535,640				16,724		552,364
Foreign currency translation adjustment								(2,584)		(1,685)		(4,269)
Unrealized gain on investments and other								(1,027)				(1,027)
Distributions to noncontrolling interest										(6,750)		(6,750)
Noncontrolling interest related to business combinations										6,831		6,831
Cash dividends - $0.65 per share						(40,209)						(40,209)
Issuance of 33,104 shares under employee stock purchase plan		33		2,083								2,116
Issuance of 546,235 shares under stock grant programs		546		3,506		10						4,062
Issuance of 116,732 shares under deferred compensation plan		117		(117)								—
Expense associated with share-based compensation arrangements				11,071								11,071
Accrued expense under deferred compensation plans				9,228								9,228
Balance on December 25, 2021	$	61,902	$	243,995	$	1,678,121	$	(5,405)	$	37,956	$	2,016,569

See notes to consolidated financial statements

27

UFP INDUSTRIES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)	Year Ended
	December 25,		December 26,		December 28,
	2021		2020		2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$	552,364	$	253,882	$	182,404
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation		84,184		63,964		60,494
Amortization of intangibles		13,948		8,716		6,325
Expense associated with share-based and grant compensation arrangements		11,224		4,034		4,007
Deferred income taxes		5,653		1,857		7,176
Unrealized gain on investments and other		(4,118)		(2,076)		(2,523)
Equity in earnings of investee		3,902		—		—
Net gain on sale and disposition of assets		(11,992)		1,470		1,565
Goodwill impairment		—		11,485		—
Gain from reduction of estimated earnout liability		—		(4,134)		—
Changes in:
Accounts receivable		(85,439)		(87,552)		(16,872)
Inventories		(260,301)		(76,022)		73,120
Accounts payable and cash overdraft		78,060		62,405		(24,132)
Accrued liabilities and other		124,992		98,448		57,727
NET CASH PROVIDED BY OPERATING ACTIVITIES		512,477		336,477		349,291
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment		(151,166)		(89,182)		(84,933)
Proceeds from sale of property, plant and equipment		29,973		2,922		1,777
Acquisitions and purchases of non-controlling interest, net of cash received		(475,960)		(65,255)		(39,122)
Investment in life insurance contracts		—		—		(15,253)
Purchases of investments		(23,797)		(28,054)		(13,352)
Proceeds from sale of investments		14,882		24,805		9,828
Other		(5,119)		46		(982)
NET CASH USED IN INVESTING ACTIVITIES		(611,187)		(154,718)		(142,037)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities		892,072		6,862		422,057
Repayments under revolving credit facilities		(888,695)		(6,498)		(460,537)
Contingent consideration payments and other		(3,176)		(5,787)		(3,136)
Issuance of long-term debt		—		150,000		—
Proceeds from issuance of common stock		2,116		1,395		1,093
Dividends paid to shareholders		(40,209)		(30,669)		(24,549)
Distributions to noncontrolling interest		(6,750)		(932)		(2,216)
Repurchase of common stock		—		(29,212)		—
Other		(364)		62		20
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(45,006)		85,221		(67,268)
Effect of exchange rate changes on cash		(1,669)		962		482
NET CHANGE IN CASH AND CASH EQUIVALENTS		(145,385)		267,942		140,468
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR		436,608		168,666		28,198
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$	291,223	$	436,608	$	168,666
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:
Cash and cash equivalents, beginning of period	$	436,507	$	168,336	$	27,316
Restricted cash, beginning of period		101		330		882
Cash, cash equivalents, and restricted cash, beginning of period	$	436,608	$	168,666	$	28,198
Cash and cash equivalents, end of period	$	286,662	$	436,507	$	168,336
Restricted cash, end of period		4,561		101		330
Cash, cash equivalents, and restricted cash, end of period	$	291,223	$	436,608	$	168,666
SUPPLEMENTAL INFORMATION:
Interest paid	$	14,077	$	7,204	$	8,763
Income taxes paid		167,043		77,964		50,224
NON-CASH INVESTING ACTIVITIES
Capital expenditures included in accounts payable		3,256		—		—
NON-CASH FINANCING ACTIVITIES:
Common stock issued under deferred compensation plans	$	7,487	$	6,870	$	6,229

See notes to consolidated financial statements

28

UFP INDUSTRIES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

A.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

OPERATIONS

We are a holding company whose subsidiaries supply wood, wood composite and other products to three markets: retail, construction and industrial. Founded in 1955, we are headquartered in Grand Rapids, Michigan, with affiliates throughout North America, Europe, Asia and Australia.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships. In addition, we consolidate any entity which we own 50% or more and exercise control. Intercompany transactions and balances have been eliminated.

NONCONTROLLING INTEREST IN SUBSIDIARIES

Noncontrolling interest in results of operations of consolidated subsidiaries represents the noncontrolling shareholders’ share of the income or loss of various consolidated subsidiaries. The noncontrolling interest reflects the original investment by these noncontrolling shareholders combined with their proportional share of the earnings or losses of these subsidiaries, net of distributions paid.

FISCAL YEAR

Our fiscal year is a 52 or 53 week period, ending on the last Saturday of December. Unless otherwise stated, references to 2021, 2020, and 2019 relate to the fiscal years ended December 25, 2021, December 26, 2020, and December 28, 2019, respectively. Fiscal years 2021, 2020, and 2019 were comprised of 52 weeks.

FAIR VALUE DISCLOSURES OF FINANCIAL INSTRUMENTS

We follow ASC Topic 820, Fair Value Measurements and Disclosures, which provides a consistent definition of fair value, focuses on exit price, prioritizes the use of market-based inputs over entity-specific inputs for measuring fair value and establishes a three-tier hierarchy for fair value measurements. This topic requires fair value measurements to be classified and disclosed in one of the following three categories:

● Level 1 — Financial instruments with unadjusted, quoted prices listed on active market exchanges.

● Level 2 — Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. Financial instrument values are determined using prices for recently traded financial instruments with similar underlying terms and direct or indirect observational inputs, such as interest rates and yield curves at commonly quoted intervals.

● Level 3 — Financial instruments not actively traded on a market exchange and there is little, if any, market activity. Values are determined using significant unobservable inputs or valuation techniques.

Our investment portfolio includes restricted investments within our wholly-owned subsidiary, Ardellis Insurance Ltd. There are $19.3 million of restricted investments recorded as of December 25, 2021.

29

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash and highly liquid investments purchased with an original maturity of three months or less.

INVESTMENTS

Investments are deemed to be "available for sale" and are, accordingly, carried at fair value being the quoted market value.

ACCOUNTS RECEIVABLE AND ALLOWANCES

We perform periodic credit evaluations of our customers and generally do not require collateral. Accounts receivable are due under a range of terms we offer to our customers. Discounts are offered, in most instances, as an incentive for early payment.

We base our allowances related to receivables on historical credit and collections experience, reasonable and supportable forecasts, and the specific identification of other potential problems, including the general economic climate. Actual collections can differ, requiring adjustments to the allowances. Individual accounts receivable balances are evaluated on a monthly basis, and those balances considered uncollectible are charged to the allowance.

The following table presents the activity in our accounts receivable allowances (in thousands):

			Additions
			Charged to
	Beginning		Costs and				Ending
	Balance		Expenses		Deductions*		Balance
Year Ended December 25, 2021:
Allowance for possible losses on accounts receivable	$	4,629	$	66,883	$	(66,427)	$	5,085
Year Ended December 26, 2020:
Allowance for possible losses on accounts receivable	$	4,440	$	48,954	$	(48,765)	$	4,629
Year Ended December 28, 2019:
Allowance for possible losses on accounts receivable	$	2,601	$	39,481	$	(37,642)	$	4,440

* Includes accounts charged off, discounts given to customers and actual customer returns and allowances.

We record estimated sales returns, discounts, and other applicable adjustments as a reduction of net sales in the same period revenue is recognized.

Accounts receivable retainage amounts related to long term construction contracts totaled $7.8 million and $8.7 million as of December 25, 2021 and December 26, 2020, respectively. All amounts are expected to be collected within 18 months. Concentration of accounts receivable related to our two largest customers totaled $87.6 million and $97.9 million as of December 25, 2021 and December 26, 2020, respectively.

In June 2016, the FASB issued ASU 2016-13, Financial Instrument-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which changes the current incurred loss model to a forward looking expected credit loss model for most financial assets, such as trade and other receivables, loans and other instruments. The ASU is effective for fiscal years beginning after December 15, 2019. Entities are required to apply the provisions of the standard through a cumulative-effect adjustment to retained earnings as of effective date. We have adopted the new standard as of the beginning of fiscal year 2020 and have concluded the standard does not have a material impact on our consolidated financial statements and disclosures, accounting processes, and internal controls.

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INVENTORIES

Inventories are stated at the lower of cost or market. The cost of inventories includes raw materials, direct labor, and manufacturing overhead. Cost is determined on a weighted average basis. Raw materials consist primarily of unfinished wood products and other materials expected to be manufactured or treated prior to sale, while finished goods represent various manufactured and treated wood products ready for sale. We have inventory on consignment at customer locations valued at $37.8 million as of December 25, 2021 and $20.8 million as of December 26, 2020.

PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment are stated at cost. Expenditures for renewals and betterments are capitalized, and maintenance and repairs are expensed as incurred. Amortization of assets held under finance leases is included in depreciation and amortized over the shorter of the estimated useful life of the asset or the lease term. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets as follows:

Land improvements	5 to 15 years
Buildings and improvements	10 to 32 years
Machinery, equipment and office furniture	2 to 20 years

Software costs are included in machinery and equipment on the balance sheet with gross amounts and accumulated amortization totaling $6.0 million and $5.3 million as of December 25, 2021, and $5.5 million and $4.9 million as of December 26, 2020, respectively.

LONG-LIVED ASSETS

In accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), when an indicator of potential impairment exists, we evaluate the recoverability of our long-lived assets by determining whether unamortized balances could be recovered through undiscounted future operating cash flows over the remaining lives of the assets. If the sum of the expected future cash flows was less than the carrying value of the assets, an impairment loss would be recognized for the excess of the carrying value over the fair value.

GOODWILL

Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are subject to impairment tests at least annually in accordance with ASC 350, Intangibles-Goodwill and Other. We review the carrying amounts of goodwill and other non-amortizable intangibles by reporting unit to determine if such assets may be impaired. As of the date of the most recent goodwill impairment test, which utilized data and assumptions as of September 25, 2021, all other reporting units had a fair value that was substantially in excess of the carrying value. In the fourth quarter of 2020, we recorded a non-cash goodwill impairment charge of $11.5 million related to the commercial reporting unit within our construction segment. We believe we have sufficient available information, both current and historical, to support our assumptions, judgments and estimates used in the goodwill impairment test.

Our annual testing date for evaluating goodwill and indefinite-lived intangible asset impairment is the first day of our fourth fiscal quarter for all reporting units. Additionally, we review various triggering events throughout the year to determine whether a mid-year impairment analysis is required.

FOREIGN CURRENCY

Our foreign operations use the local currency as their functional currency. Accordingly, assets and liabilities are translated at exchange rates as of the balance sheet date and revenues and expenses are translated using weighted average rates, with translation adjustments included as a separate component of shareholders’ equity. Gains and losses arising from re-measuring foreign currency transactions are included in earnings.

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INSURANCE RESERVES

Our wholly-owned insurance company, Ardellis Insurance Ltd.(“Ardellis”), was incorporated on April 21, 2001 under the laws of Bermuda and is licensed as a Class 3A insurer under the Insurance Act 1978 of Bermuda.  On April 14, 2017 the U.S. Branch of Ardellis Insurance Ltd. was granted its Certificate of Authority to transact property and casualty insurance lines as an admitted carrier in the State of Michigan.

We are primarily self-insured for certain employee health benefits, and have self-funded retentions for general liability, automobile liability, property and workers’ compensation. We are fully self-insured for environmental liabilities. The general liability, automobile liability, property, workers’ compensation, and certain environmental liabilities are managed through Ardellis; the related assets and liabilities of which are included in the consolidated financial statements as of December 25, 2021 and December 26, 2020. Our policy is to accrue amounts equal to actuarially determined or internally computed liabilities. The actuarial and internal valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical cost trends, and changes in claims experience could cause these estimates to change in the future.

In addition to providing coverage for the Company, Ardellis provides Excess Loss Insurance (primarily medical and prescription drug) to certain third parties. As of December 25, 2021, Ardellis had 43 such contracts in place. Reserves associated with these contracts were $7.1 million at December 25, 2021, and $4.5 million at December 26, 2020, and are accrued based on third party actuarial valuations of the expected future liabilities.

INCOME TAXES

Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred income tax assets to the amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred income tax assets and liabilities.

REVENUE RECOGNITION

Within the three primary segments (Retail, Industrial, and Construction) that the Company operates, there are a variety of written agreements governing the sale of our products and services. The transaction price is stated at the purchase order level, which includes shipping and/or freight costs and any applicable governmental authority taxes. The majority of our contracts have a single performance obligation concentrated around the delivery of goods to the carrier, Free On Board (FOB) shipping point. Therefore, revenue is recognized when this performance obligation is satisfied. Generally, title and control passes at the time of shipment. In certain circumstances, the customer takes title when the shipment arrives at the destination. However, our shipping process is typically completed the same day.

Certain customer products that we provide require installation by the Company or a third party. Installation revenue is recognized upon completion. If we use a third party for installation, the party will act as an agent to us until completion of the installation. Installation revenue represents an immaterial share of our total net sales.

We utilize rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized.

32

Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred related to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced related to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent.

Our construction contracts are generally entered into with a fixed price and completion of the projects can range from 6 to 18 months in duration. Therefore, our operating results are impacted by, among many other things, labor rates and commodity costs. During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist.

The following table presents our net sales disaggregated by revenue source (in thousands):

	Year Ended
	December 25,		December 26,		December 28,		2021 vs. 2020	2020 vs. 2019
	2021		2020		2019		% Change	% Change
FOB Shipping Point Revenue	$	8,512,012	$	5,025,895	$	4,272,583	69.4%	17.6%
Construction Contract Revenue		124,122		128,103		143,426	(3.1)%	(10.7)%
Total Net Sales	$	8,636,134	$	5,153,998	$	4,416,009	67.6%	16.7%

The Construction segment comprises the construction contract revenue shown above. Construction contract revenue is primarily made up of site-built and framing customers.

The following table presents the balances of over time accounting accounts on December 25, 2021 and December 26, 2020 which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands):

	December 25,		December 26,
	2021		2020
Cost and Earnings in Excess of Billings	$	5,602	$	4,169
Billings in Excess of Cost and Earnings		10,744		11,530

SHIPPING AND HANDLING OF PRODUCT

Shipping and handling costs that are charged to and reimbursed by the customer are recognized as revenue. Costs incurred related to the shipment and handling of products are classified in cost of goods sold.

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SHARE-BASED COMPENSATION

We account for share-based awards in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”), which requires recognition of share-based compensation costs in financial statements based on fair value. Compensation cost is recognized over the period during which an employee is required to provide services in exchange for the award (the requisite service period). Forfeitures are recognized as they occur.

EARNINGS PER SHARE

Earnings per share (“EPS”) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and their respective participation rights in undistributed earnings. Participating securities include non-vested shares of restricted stock in which the participants have non-forfeitable rights to dividends during the performance period. EPS, basic and diluted, is calculated by dividing net earnings attributable to controlling interest, net of applicable taxes, by the weighted average number of shares of common stock outstanding for the period. The computation of EPS is as follows (in thousands):

	December 25,		December 26,		December 28,
	2021		2020		2019
Numerator:
Net earnings attributable to controlling interest	$	535,640	$	246,778	$	179,650
Adjustment for earnings allocated to non-vested restricted common stock		(17,342)		(6,903)		(4,496)
Net earnings for calculating EPS	$	518,298	$	239,875	$	175,154
Denominator:
Weighted average shares outstanding		62,209		61,632		61,649
Adjustment for non-vested restricted common stock		(2,014)		(1,724)		(1,543)
Shares for calculating basic EPS		60,195		59,908		60,106
Effect of dilutive restricted common stock		159		20		24
Shares for calculating diluted EPS		60,354		59,928		60,130
Net earnings per share:
Basic	$	8.61	$	4.00	$	2.91
Diluted	$	8.59	$	4.00	$	2.91

USE OF ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. We believe our estimates to be reasonable; however, actual results could differ from these estimates.

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B.FAIR VALUE

We apply the provisions of ASC 820, Fair Value Measurements and Disclosures, to assets and liabilities measured at fair value. Assets and liabilities measured at fair value are as follows:

	December 25, 2021								December 26, 2020
	Quoted		Prices with						Quoted		Prices with
	Prices in		Other			Prices with			Prices in		Other			Prices with
	Active		Observable			Unobservable			Active		Observable			Unobservable
	Markets		Inputs			Inputs			Markets		Inputs			Inputs
	(Level 1)		(Level 2)			(Level 3)	Total		(Level 1)		(Level 2)			(Level 3)	Total
Money market funds	$	19	$	9,392	$	—	$	9,411	$	19	$	4,643	$	—	$	4,662
Fixed income funds		1,668		16,910		—		18,578		246		16,224		—		16,470
Treasury securities		342		—		—		342		—		—		—		—
Equity securities		20,163		—		—		20,163		12,602		—		—		12,602
Alternative investments		—		—		3,785		3,785		—		—		2,040		2,040
Mutual funds:
Domestic stock funds		10,910		—		—		10,910		8,088		—		—		8,088
International stock funds		1,687		—		—		1,687		1,440		—		—		1,440
Target funds		23		—		—		23		114		—		—		114
Bond funds		146		—		—		146		147		—		—		147
Alternative funds		483		—		—		483		482		—		—		482
Total mutual funds		13,249		—		—		13,249		10,271		—		—		10,271
Total	$	35,441	$	26,302	$	3,785	$	65,528	$	23,138	$	20,867	$	2,040	$	46,045
Assets at fair value	$	35,441	$	26,302	$	3,785	$	65,528	$	23,138	$	20,867	$	2,040	$	46,045

From the assets measured at fair value as of December 25, 2021, listed in the table above, $9.0 million of money market funds are held in Cash and Cash Equivalents, $36.5 million of mutual funds, equity securities, and alternative investments are held in Investments, $0.7 million of money market and mutual funds are held in Other Assets for our deferred compensation plan, and $18.9 million of fixed income funds and $0.4 million of money market funds are held in Restricted Investments.

We maintain money market, mutual funds, bonds, and/or stocks in our non-qualified deferred compensation plan and our wholly owned licensed captive insurance company, and assets held in financial institutions. These funds are valued at prices quoted in an active exchange market and are included in "Cash and Cash Equivalents", "Investments", "Other Assets", and “Restricted Investments.” We have elected not to apply the fair value option under ASC 825, Financial Instruments, to any of our financial instruments except for those expressly required by U.S. GAAP.

During 2018, we purchased a private real estate income trust which is valued as a Level 3 asset and is categorized as an “Alternative Investment.”

In accordance with our investment policy, our wholly-owned company, Ardellis Insurance Ltd. ("Ardellis"), maintains an investment portfolio, totaling $55.4 million as of December 25, 2021, consisting of domestic and international stocks, alternative investments, and fixed income bonds.

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Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands):

	December 25, 2021						December 26, 2020
			Unrealized						Unrealized
	Cost		Gain		Fair Value		Cost		Gain		Fair Value
Fixed Income	$	18,169	$	409	$	18,578	$	15,325	$	1,145	$	16,470
Treasury Securities		342		—		342		—		—		—
Equity		15,196		4,967		20,163		9,787		2,815		12,602
Mutual Funds		9,222		3,325		12,547		8,235		1,430		9,665
Alternative Investments		3,003		782		3,785		1,904		136		2,040
Total	$	45,932	$	9,483	$	55,415	$	35,251	$	5,526	$	40,777

Our fixed income investments consist of a blend of US Government and Agency bonds and investment grade corporate bonds with varying maturities.  Our equity investments consist of small, mid, and large cap growth and value funds, as well as international equity. Our alternative investments consist of the private real estate income trust which is valued as a Level 3 asset.  The net pre-tax unrealized gain was $9.5 million for the year ended December 25, 2021. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of December 25, 2021 and December 26, 2020.

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C.BUSINESS COMBINATIONS

We completed the following business combinations in fiscal 2021 and 2020, which were accounted for using the purchase method (in thousands).

					Net
Company	Acquisition		Intangible		Tangible		Operating
Name	Date	Purchase Price	Assets		Assets		Segment
	December 20, 2021	$20,854 cash paid for 100% stock purchase	$	11,481	$	9,373	Industrial
Advantage Labels & Packaging, Inc. (Advantage)	Based in Grand Rapids, Michigan, Advantage provides blank and customized labels, printers, label applicators and other packaging supplies. Key industries served by the company include beer and beverage; body armor; food production and processing; greenhouse and nursery; hobby and craft; manufacturing; and automotive. The company had trailing 12-month sales through November 2021 of approximately $19.8 million.
	November 22, 2021	$11,155 cash paid for 70% stock purchase	$	9,106	$	2,049	Other
Ficus Pax Private Limited (Ficus)	Headquartered in Bangalore, India, Ficus manufactures mixed-material cases and crates, nail-less plywood boxes, wooden pallets and other packaging products through 10 facilities located in major industrial markets throughout southern India. Ficus also owns a majority stake in Wadpack, a manufacturer of corrugated fiber board containers, corrugated pallets and display solutions. The company had trailing 12-month sales through August 2021 of approximately $39 million USD.
	November 1, 2021	$5,984 cash paid for 100% asset purchase and estimated contingent consideration	$	5,681	$	303	Other
Boxpack Packaging (Boxpack)	Based near Melbourne, Australia, Boxpack specializes in flexographic and lithographic cardboard packaging, using the latest CAD design and finishing techniques. Boxpack serves multiple industries, including food and beverage, confectionary, pharmaceutical, industrial and agricultural. The company had trailing 12-month sales through June 30, 2021, of $8.2 million AUD.
	September 27, 2021	$6,443 cash paid for 100% asset purchase and estimated contingent consideration	$	4,039	$	2,404	Construction
Shelter Products, Inc. (Shelter)	Based in Haleyville, Alabama, Shelter operates its distribution and logistics business from an 87,800 sq.-ft. warehouse that specializes in manufactured housing industry customers. Shelter’s facility is adjacent to a UFP manufacturing facility that supplies trusses to manufactured housing builders, and the proximity will enable additional operational synergies. The Company had sales of approximately $11.4 million in 2020.
	April 29, 2021	$10,129 cash paid for 100% asset purchase	$	7,099	$	3,030	Construction
Endurable Building Products, LLC (Endurable)	Based near Minneapolis, Minnesota, Endurable is a leading manufacturer of customized structural aluminum systems and products for exterior purposes, such as deck framing, balconies, sunshades, railings and stairs. The company’s trademarked alumiLAST aluminum deck and balcony systems are known for their low-maintenance design and ease of installation. Endurable serves general contractors in the multifamily market throughout the U.S. and had sales of approximately $15 million in 2020.
	April 19, 2021	$8,549 cash paid for 100% asset purchase	$	1,526	$	7,023	Retail
Walnut Hollow Farm, Inc.	Walnut Hollow Farm, located in Wisconsin, is engaged in the business of designing, manufacturing, selling, and distributing wood products, tools, and accessories for the craft and hobby, outdoor sportsman art, personalized home décor, and hardware categories, with sales of approximately $11.6 million in 2020.

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					Net
Company	Acquisition		Intangible		Tangible		Operating
Name	Date	Purchase Price	Assets		Assets		Segment
	April 12, 2021	$153,462 cash paid for 100% asset purchase	$	—	$	153,462	Retail
Spartanburg Forest Products, Inc.	Headquartered in Greer, South Carolina, Spartanburg Forest Products and its affiliates are a premier wood treating operation in the U.S., with approximately 150 employees and operations in five states. Its affiliates include Appalachian Forest Products, Innovative Design Industries, Blue Ridge Wood Preserving, Blue Ridge Wood Products, and Tidewater Wood Products and had combined sales of approximately $543.0 million in 2020.
	March 1, 2021	$4,724 cash paid for 100% asset purchase and estimated contingent consideration	$	4,264	$	460	Other
J.C. Gilmore Pty Ltd (Gilmores)	Founded in 1988 and operating from its distribution facility in Port Melbourne, Australia, Gilmores is a leading distributor in the industrial and construction industries of packaging tapes, stretch films, packaging equipment, strapping, construction protection products and other items, with 2020 sales of $15 million AUD ($10 million USD).
	December 28, 2020	$259,011 cash paid for 100% stock purchase	$	79,917	$	179,094	Retail/Industrial
PalletOne, Inc. (PalletOne)	Based in Bartow, Florida, PalletOne is a leading manufacturer of new pallets in the U.S., with 17 pallet manufacturing facilities in the southern and eastern regions of the country. The company also supplies other specialized industrial packaging, including custom bins and crates, and its Sunbelt Forest Products (Sunbelt) subsidiary operates five pressure-treating facilities in the Southeastern U.S. PalletOne and its affiliates had 2020 sales of $698 million.
	November 10, 2020	$21,268 cash paid for 100% asset purchase	$	11,923	$	9,345	Construction
Atlantic Prefab, Inc.; Exterior Designs, LLC; and Patriot Building Systems, LLC	Based in Wilton, New Hampshire, Atlantic Prefab produces prefabricated steel wall panels and light gauge metal trusses. The company’s steel component and prefinished wall panel lines are new, value-added product additions for UFP Construction that help shorten project timelines. Exterior Designs is a leading installer of siding and exterior cladding such as fiber cement, ACM (aluminum composite material) panels, phenolic panels, and EIFS (exterior insulation and finish systems). The company is based in Londonderry, New Hampshire, and serves commercial and multi-family clients throughout the Northeast. Also based in Londonderry, Patriot Building Systems provides commercial and multi-family framing services in the Northeast and will focus on markets not currently served by companies of UFP Industries. The companies had combined annual sales of approximately $28 million.
	October 1, 2020	$5,936 cash paid for 100% stock purchase	$	5,222	$	714	Retail
Fire Retardant Chemical Technologies, LLC (FRCT)	Founded in 2014 and based in Matthews, North Carolina, FRCT’s business includes a research and development laboratory specializing in developing and testing a wide range of high-performance chemicals, including fire retardants and water repellants. The company had annual sales of approximately $6.4 million.

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					Net
Company	Acquisition		Intangible		Tangible		Operating
Name	Date	Purchase Price	Assets		Assets		Segment
	September 30, 2020	$3,475 cash paid for 50% stock purchase and estimated contingent consideration	$	7,267	$	(1,369)	Other
Enwrap Logistic & Packaging S.r.l. (Enwrap)	Enwrap is a newly formed company dedicated to the logistics and packaging business of its predecessor, Job Service S.p.A. Headquartered in Milan, Italy, Enwrap provides high-value, mixed material industrial packaging and logistics services through eight locations in Italy. These locations generated annual sales of approximately $14 million.
	July 14, 2020	$18,496 cash paid for 100% asset purchase and estimated contingent consideration	$	12,458	$	6,038	Industrial
T&R Lumber Company (T&R)	A manufacturer and distributor of a range of products used primarily by nurseries, including plastic growing containers, pots and trays; wooden stakes; trellises; tree boxes; shipping racks; and other nursery supplies based in Rancho Cucamonga, California. T&R had annual sales of approximately $31 million. The acquisition of T&R will allow us to leverage their expertise using our national manufacturing capacity to grow our agricultural product offerings and customer base across the country.
	March 13, 2020	$22,951 cash paid for 100% asset purchase and estimated contingent consideration	$	20,262	$	2,689	Construction
Quest Design & Fabrication and Quest Architectural Millwork (Quest)	A designer, fabricator, and installer of premium millwork and case goods for a variety of commercial uses. Quest had annual sales of approximately $22 million. The acquisition of Quest expands our architectural millwork capabilities and expertise in our commercial construction business unit, and will allow us to use our national manufacturing capacity to grow and diversify our sales to this end market

The intangible assets for each acquisition were finalized and allocated to their respective identifiable intangible asset and goodwill accounts during 2021, except for our 2021 acquisitions.  In aggregate, acquisitions made during 2021 and 2020, contributed approximately $1.2 billion in net sales and $50.5 million in operating profit during 2021.

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At December 25, 2021, the amounts assigned to major intangible classes for the business combinations mentioned above are as follows (in thousands):

	Non-												Intangibles -
	Compete				Customer								Tax
	Agreements		Patents		Relationships			Tradename		Goodwill			Deductible
Advantage	$	—	$	—	$	—		$	—	$	11,481	*	$	11,481
Ficus		—		—		—			—		8,889	*		8,889
Boxpack		—		—		2,694	*		—		1,978	*		4,672
Shelter		—		—		2,019	*		—		2,020	*		4,039
Endurable		—		—		4,617	*		—		2,482	*		7,099
Walnut Hollow		—		—		1,263	*		—		263	*		1,526
Gilmores		—		—		1,938	*		—		1,938	*		3,876
PalletOne		—		—		18,089			17,450		44,378			79,917
Atlantic Prefab		417		—		1,620			150		1,356			3,543
Exterior Designs		667		—		2,592			240		2,241			5,740
Patriot Building Systems		306		—		1,188			110		1,036			2,640
FRCT		1,090		—		1,960			210		1,962			5,222
Enwrap		790		1,293		558			474		3,705			6,820
T&R		600		—		5,000			2,600		4,258			12,458
Quest		—		—		10,318			1,903		8,041			20,262

*(estimate)

The business combinations mentioned above were not significant to our operating results individually or in aggregate, and thus pro forma results for 2021 and 2020 are not presented.

D.GOODWILL AND OTHER INTANGIBLE ASSETS

As described in Note M — Segment Reporting, our segment structure is based upon the markets we serve and goodwill has been allocated to the segments using a relative fair value approach. The changes in the net carrying amount of goodwill by reporting segment for the years ended December 25, 2021 and December 26, 2020, are as follows (in thousands):

	Retail		Industrial		Construction		All Other		Corporate		Total
Balance as of December 28, 2019	$	58,098	$	81,276	$	82,911	$	7,251	$	—	$	229,536
2020 Acquisitions		3,643		6,549		18,902		4,441		—		33,535
2020 Purchase Accounting Adjustments		202		2		—		—		—		204
2020 Impairments		—		—		(11,485)		—		—		(11,485)
Foreign Exchange, Net		—		—		401		2		—		403
Balance as of December 26, 2020	$	61,943	$	87,827	$	90,729	$	11,694	$	—	$	252,193
2021 Acquisitions		13,115		43,006		4,502		13,880		—		74,503
2021 Purchase Accounting Adjustments		(1,682)		(2,292)		(6,228)		(478)		—		(10,680)
Foreign Exchange, Net		—		—		(3)		(975)		—		(978)
Balance as of December 25, 2021	$	73,376	$	128,541	$	89,000	$	24,121	$	—	$	315,038

As of the date of the most recent goodwill impairment test, which utilized data and assumptions as of September 25, 2021, all reporting units had fair values that were substantially in excess of their carrying values. In the prior year, we experienced significantly lower than expected operating results within our commercial reporting unit, which is within the Construction segment.  It was determined that the carrying value of the reporting unit exceeded its fair value and we recorded a non-cash goodwill impairment charge of $11.5 million as of December 26, 2020, which represented the entire amount of the goodwill recorded within the reporting unit, as a result.

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Indefinite-lived intangible assets totaled $7.4 million as of December 25, 2021 and December 26, 2020 related to the commercial unit within the construction segment, the international unit within the all other segment, and the Deckorators unit within the retail segment.

The following amounts were included in other amortizable intangible assets, net as of December 25, 2021 and December 26, 2020 (in thousands):

	2021						2020
			Accumulated						Accumulated
	Assets		Amortization		Net Value		Assets		Amortization		Net Value
Non-compete agreements	$	8,490	$	(4,160)	$	4,330	$	4,847	$	(2,728)	$	2,119
Customer relationships and other		101,158		(25,012)		76,146		80,343		(17,021)		63,322
Licensing agreements		4,589		(4,589)		—		4,589		(4,589)		—
Patents		3,221		(1,137)		2,084		965		(509)		456
Tradename		30,392		(4,599)		25,793		8,019		(2,123)		5,896
Software		959		(295)		664		505		(46)		459
Total	$	148,809	$	(39,792)	$	109,017	$	99,268	$	(27,016)	$	72,252

Amortization is computed principally by the straight-line method over the estimated useful lives of the intangible assets as follows:

		Weighted Average
Intangible Asset Type	Estimated Useful Life	Amortization Period
Non-compete agreements	3 to 15 years	7.8 years
Customer relationship	5 to 15 years	9.7 years
Licensing agreements	10 years	10 years
Patents	10 years	10 years
Tradename (amortizable)	5 to 15 years	11 years
Software	3 to 5 years	3.5 years

Amortization expense of intangibles totaled $13.9 million, $8.7 million and $6.3 million in 2021, 2020 and 2019, respectively. The estimated amortization expense for intangibles for each of the five succeeding fiscal years is as follows (in thousands):

2022	$	13,734
2023		12,878
2024		12,409
2025		11,901
2026		10,944
Thereafter		47,151
Total	$	109,017

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E.DEBT

On November 1, 2018, we entered into a five-year, $375 million unsecured revolving credit facility with a syndicate of U.S. banks led by JPMorgan Chase Bank, N.A., as administrative agent and Wells Fargo Bank, N.A., as syndication agent. The facilities include up to $40 million which may be advanced in the form of letters of credit, and up to $100 million (U.S. dollar equivalent) which may be advanced in Canadian dollars, Australian dollars, pounds Sterling, Euros and such other foreign currencies as may subsequently be agreed upon among the parties. Cash borrowings are charged interest based upon an index selected by the Company, plus a margin that is determined based upon the index selected and upon the financial performance of the Company and certain of its subsidiaries. We are charged a facility fee on the entire amount of the lending commitment, at a per annum rate ranging from 12.5 to 30.0 basis points, also determined based upon our performance. The facility fee is payable quarterly in arrears. On February 28, 2021, our credit agreement was amended to increase the availability from $375 million to $550 million by exercising the accordion  feature in the original agreement.

On August 10, 2020, we entered into an unsecured Note Purchase Agreement under which we issued our 3.04% Series 2020 E Senior Notes, due August 10, 2032, in the aggregate principal amount of $50 million, our 3.08% Series 2020 F Senior Notes, due August 10, 2033, in the aggregate principal amount of $50 million, and our 3.15% Series 2020 G Senior Notes, due August 10, 2035, in the aggregate principal amount of $50 million. Proceeds from the sale of the Series E, F and G Senior Notes were used to fund the acquisition of PalletOne in January 2021.

Outstanding letters of credit extended on our behalf on December 25, 2021 and December 26, 2020 aggregated $54.2 million and $41.0 million; respectively, which includes approximately $7.1 million related to industrial development revenue bonds.  We had an outstanding balance of $7.8 million and $4.7 million, which includes foreign subsidiary borrowings, on the revolver at December 25, 2021, and December 26, 2020, respectively. After considering letters of credit, we had $535.1 million and $363.2 million in remaining availability on the revolver on December 25, 2021, and December 26, 2020, respectively.  Letters of credit have one-year terms, include an automatic renewal clause, and are charged an annual interest rate of 112.5 basis points, based upon our financial performance.

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Long-term debt obligations are summarized as follows on December 25, 2021 and December 26, 2020 (amounts in thousands):

	2021		2020
Series 2020 Senior Notes E, due on August 10, 2032, interest payable semi-annually at 3.04%	$	50,000	$	50,000
Series 2020 Senior Notes F, due on August 10, 2033, interest payable semi-annually at 3.08%		50,000		50,000
Series 2020 Senior Notes G, due on August 10, 2035, interest payable semi-annually at 3.15%		50,000		50,000
Series 2018 Senior Notes C, due on June 14, 2028, interest payable semi-annually at 4.20%		40,000		40,000
Series 2018 Senior Notes D, due on June 14, 2030, interest payable semi-annually at 4.27%		35,000		35,000
Series 2012 Senior Notes Tranche A, due on December 17, 2022, interest payable semi-annually at 3.89%		35,000		35,000
Series 2012 Senior Notes Tranche B, due on December 17, 2024, interest payable semi-annually at 3.98%		40,000		40,000
Foreign subsidiary borrowings under revolving credit facility, due on November 1, 2023, interest payable monthly at a floating rate (1.06% on December 25, 2021 and 1.125% on December 26, 2020)		7,818		4,715
Series 1999 Industrial Development Revenue Bonds, due on August 1, 2029, interest payable monthly at a floating rate (0.14% on December 25, 2021 and 0.20% on December 26, 2020)		3,300		3,300
Series 2002 Industrial Development Revenue Bonds, due on December 1, 2022, interest payable monthly at a floating rate (0.18% on December 25, 2021 and 0.22% on December 26, 2020)		3,700		3,700
Finance leases and foreign affiliate debt		5,544		138
		320,362		311,853
Less current portion		(42,683)		(100)
Less debt issuance costs		(112)		(146)
Long-term portion	$	277,567	$	311,607

Financial covenants on the unsecured revolving credit facility and unsecured notes include minimum interest coverage tests and a maximum leverage ratio. The agreements also restrict the amount of additional indebtedness we may incur and the amount of assets which may be sold among other industry standard covenants. We were within all of our lending requirements on December 25, 2021 and December 26, 2020.

On December 25, 2021, the principal maturities of long-term debt and finance lease obligations are as follows (in thousands):

2022	$	42,683
2023		8,863
2024		40,214
2025		—
2026		302
Thereafter		228,300
Total	$	320,362

On December 25, 2021, the estimated fair value of our long-term debt, including the current portion, was $334.6 million, which was $14.3 million more than the carrying value. The estimated fair value is based on rates anticipated to be available to us for debt with similar terms and maturities. We consider the valuations of our long-term debt, including the current portion, to be Level 2 liabilities which rely on quoted prices in markets that are not active or observable inputs over the full term of the liability.

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F.LEASES

We determine if an arrangement is a lease at inception. We lease certain real estate under non-cancelable operating lease agreements with typical original terms ranging from one to ten years. We are required to pay real estate taxes and other occupancy costs under certain leases, which are variable in nature and not included in the right of use asset or lease liability. Certain leases carry renewal options of five to fifteen years. We believe that future leases will likely have similar terms.  We also lease motor vehicles, equipment, and an aircraft under operating lease agreements for periods of one to ten years.  We do not typically enter into leases with residual value guarantees. There were no restrictions or covenants imposed by any lease agreements.

We believe finance leases have no significant impact to our consolidated balance sheet and statement of earnings as of December 25, 2021.

As of December 25, 2021, we have no leases that have not yet commenced that would significantly impact the rights, obligations, and our financial position.

There were no lease transactions between related parties as of December 25, 2021.

The rates implicit in our leases are primarily not readily available. To determine the discount rate used to present value the lease payments, we utilize the 7-year treasury note rate plus a blend of rate spreads associated with our revolver and 10-12-year senior notes along with estimated spreads based on current market conditions.  We feel the determined rate is a reasonable representation of our lease population.

Lease costs under non-cancelable operating leases on December 25, 2021 and December 26, 2020 are as follows (in thousands):

		2021		2020
Operating lease cost	$	30,054	$	21,594
Short-term lease cost		5,264		2,863
Variable lease cost		4,761		3,985
Sublease income		(3,109)		(1,013)
Total lease cost	$	36,970	$	27,429

The amounts paid for operating leases, included in the measurement of lease liabilities, were $27.4 million in the year ended December 25, 2021 and $20.0 million in the year ended December 26, 2020. In addition, right-of-use assets obtained in exchange for new operating lease liabilities were approximately $46.7 million and $12.8 million, respectively, for the years ended December 25, 2021 and December 29, 2019.

Future minimum payments under non-cancelable operating leases on December 25, 2021 are as follows (in thousands):

	Operating
	Leases
2022	$	26,378
2023		21,040
2024		15,842
2025		13,164
2026		11,140
Thereafter		27,123
Total minimum lease payments	$	114,687
Less present value discount		(14,900)
Total lease liability	$	99,787

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Rent expense was approximately $40.1 million, $28.4 million, and $29.9 million in 2021, 2020, and 2019, respectively.

As of December 25, 2021 and December 26, 2020, the weighted average lease term for operating leases was 7.33 years and 6.84 years, respectively.  Similarly, the weighted average discount rate for operating leases was 2.87% and 3.12%, respectively.

G.DEFERRED COMPENSATION

We have a program whereby certain executives irrevocably elected to defer receipt of certain compensation in 1985 through 1988. Deferred compensation payments to these executives commenced upon their retirement. The remaining deferred compensation liability on December 25, 2021 and December 26, 2020 was $0.2 million. We purchased life insurance on these executives, payable to us in amounts which, if assumptions made as to mortality experience, policy dividends, and other factors are realized, will accumulate cash values adequate to reimburse us for all payments for insurance and deferred compensation obligations. The investment in life insurance contracts as of December 25, 2021 and December 26, 2020, was $12.7 million and $13.3 million, respectively, and is recorded in “Other Assets” on the Consolidated Balance Sheet.

We also maintain a non-qualified deferred compensation plan (the "Plan") for the benefit of senior management employees who may elect to defer a portion of their annual bonus payments and salaries. The Plan provides investment options similar to our 401(k) plan, including our stock. The investment in our stock is funded by the issuance of shares to a Rabbi trust, and may only be distributed in kind. Assets held by the Plan totaled approximately $0.7 million and $0.6 million on December 25, 2021 and December 26, 2020, respectively, and are included in "Other Assets."  Related liabilities totaled $42.1 million and $36.6 million on December 25, 2021 and December 26, 2020, respectively, and are included in "Other Liabilities" and "Shareholders’ Equity."  Assets associated with the Plan are recorded at fair market value. The related liabilities are also recorded at fair market value, with the exception of obligations associated with investments in our stock which are recorded at the market value on the date of deferral.

H.COMMON STOCK

We maintain and administer our shareholder approved Employee Stock Purchase Plan ("Stock Purchase Plan"). The Stock Purchase Plan allows eligible employees to purchase shares of our stock at a share price equal to 85% of fair market value on the purchase date. We have expensed the fair value of the compensation associated with these awards, which approximates the discount. The amount of expense is nominal.

We maintain and administer our shareholder approved Directors’ Retainer Stock Plan ("Stock Retainer Plan").  The Stock Retainer Plan allows eligible members of the Board of Directors to defer the cash portion of their retainer and committee fees and receive shares of our stock at the time of or following their retirement, disability or death. The number of shares to be received is equal to the amount of the cash portion of their retainer and committee fees deferred multiplied by 110%, divided by the fair market value of a share of our stock at the time of deferral. The number of units is increased by the amount of dividends paid on our common stock. The units are immediately vested as of the grant date, since they are considered payment for services rendered quarterly. We recognized expense for this plan of $1.7 million in 2021, and $1.8 million in both 2020 and 2019. Effective January 1, 2017, this plan was amended to allow directors to defer payment of the annual retainer paid in the form of our common stock. The number of shares to be received for their portion of the retainer that is deferred is equal to the amount of shares plus the number of shares attributable to cash dividends payable on those deferred shares.

Finally, we maintain and administer our shareholder approved Long Term Stock Incentive Plan (the "LTSIP”). The LTSIP provides for the grant of stock options, stock appreciation rights, restricted stock, performance shares and other stock-based awards.

Executive Stock Match awards are granted in the year following the requisite service period, which begins at the beginning of each fiscal year, and fully vest on the fifth anniversary of the grant date.

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There is no unrecognized compensation expense remaining for stock options in 2021, 2020, and 2019.

Below is a summary of common stock issuances for 2021 and 2020:

	December 25, 2021
Share Issuance Activity	Common Stock		Average Share Price
Shares issued under the employee stock purchase plan	33	$	75.18
Shares issued under the employee stock gift program	2		78.37
Shares issued under the director retainer stock program	5		72.66
Shares issued under the bonus plan	487		59.56
Shares issued under the executive stock match plan	77		60.24
Forfeitures	(24)
Total shares issued under stock grant programs	547	$	59.84
Shares issued under the deferred compensation plans	117	$	64.14

	December 26, 2020
Share Issuance Activity	Common Stock		Average Share Price
Shares issued under the employee stock purchase plan	35	$	46.71
Shares issued under the employee stock gift program	3		48.10
Shares issued under the director retainer stock program	46		25.31
Shares issued under the bonus plan	271		47.52
Shares issued under the executive stock grants plan	79		47.60
Forfeitures	(9)
Total shares issued under stock grant programs	390	$	44.96
Shares issued under the deferred compensation plans	128	$	53.79

A summary of the nonvested restricted stock awards granted under the LTSIP is as follows:

						Weighted-
				Unrecognized		Average
		Weighted-		Compensation		Period to
	Restricted	Average Grant		Expense		Recognize
	Awards	Date Fair Value		(in millions)		Expense
Nonvested at December 29, 2018	1,160,079	$	23.32	$	7.6	1.12 years
Granted	318,496		32.60
Vested	(224,894)		23.42
Forfeited	(50,786)		24.18
Nonvested at December 28, 2019	1,202,895	$	29.68	$	7.9	0.86 years
Granted	348,016		47.60
Vested	(177,790)		22.69
Forfeited	(9,327)		33.46
Nonvested at December 26, 2020	1,363,794	$	35.14	$	6.3	0.62 years
Granted	560,516		60.24
Vested	(274,271)		26.50
Forfeited	(23,007)		39.68
Nonvested at December 25, 2021	1,627,032	$	45.23	$	6.6	0.43 years

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Under the Stock Purchase Plan and LTSIP, we recognized share-based compensation expense of $11.2 million, $4.0 million, and $4.0 million and the related total income tax benefits of $2.7 million, $1.0 million, and $0.8 million in 2021, 2020 and 2019, respectively.

For the year-ended December 25, 2021, we determined that $60 million of share-based bonus awards, representing 751,978 shares, will be awarded to qualified employees as it relates to the company’s 2021 performance and granted in 2022. Awards granted generally vest after a period of three, five or eight years from the grant date. In addition to the share-based bonus awards, certain employees are eligible to receive performance units equivalent to $2.3 million, or 28,866 shares of stock, if certain performance metrics are achieved after three years. As of December 25, 2021 and December 26, 2020, we recognized approximately $11.5 million and $4 million, respectively, of compensation expense related to share-based bonus awards.‬

In 2021, 2020 and 2019, cash received from share issuances under our plans was $2.1 million, $1.4 million and $1.1 million, respectively.

Effective February 15, 2022, our Board authorized an additional 1.5 million shares to be repurchased under our existing share repurchase program. We repurchased no shares in 2021 and 756,397 shares in 2020 under this program. Following the most recent authorization, the cumulative total authorized shares available for repurchase is approximately 2.6 million shares through the period ending February 3, 2023.

I.RETIREMENT PLANS

We have a profit sharing and 401(k) plan for the benefit of substantially all of our employees, excluding the employees of certain wholly-owned subsidiaries. Amounts contributed to the plan are made at the discretion of the Board of Directors. We matched 25%of employee contributions in 2021, 2020, and 2019, on a discretionary basis, totaling $9.2 million, $7.2 million, and $6.5 million respectively. Included within the total employee matched contribution was an additional matched contribution for hourly employees of $3.7 million, $2.9 million and $2.6 million for 2021, 2020 and 2019, respectively, based on meeting certain performance goals during those years. The basis for matching contributions may not exceed the lesser of 6% of the employee’s annual compensation or the IRS limitation.

We maintain a retirement plan for certain officers of the Company (who have at least 20 years of service with the Company and at least 10 years of service as an officer) whereby we will pay, upon retirement, certain benefits including health care benefits, for a specified period of time if certain eligibility requirements are met. Approximately $13.1 million and $11.8 million are accrued in “Other Liabilities” for this plan on December 25, 2021 and December 26, 2020, respectively.

J.INCOME TAXES

Income tax provisions for the years ended December 25, 2021, December 26, 2020, and December 28, 2019 are summarized as follows (in thousands):

	2021		2020		2019
Currently Payable:
Federal	$	115,077	$	59,055	$	35,267
State and local		30,441		16,709		10,071
Foreign		21,095		8,601		5,834
		166,613		84,365		51,172
Net Deferred:
Federal		6,242		2,292		6,895
State and local		118		(1,518)		805
Foreign		999		1,962		(602)
		7,359		2,736		7,098
Total income tax expense	$	173,972	$	87,101	$	58,270

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The components of earnings before income taxes consist of the following:

	2021		2020		2019
U.S.	$	645,316	$	308,167	$	220,532
Foreign		81,020		32,816		20,142
Total	$	726,336	$	340,983	$	240,674

The effective income tax rates are different from the statutory federal income tax rates for the following reasons:

	2021		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State and local taxes (net of  federal benefits)	3.3		3.4		3.9
Effect of noncontrolling owned interest in earnings of partnerships	n/a		n/a		(0.1)
Tax credits, including foreign tax credit	(0.6)		(0.9)		(1.3)
Change in uncertain tax positions reserve	(0.1)		(0.1)		(0.1)
Other permanent differences	(0.4)		0.6		0.5
Other, net	0.7		1.5		0.3
Effective income tax rate	23.9	%	25.5	%	24.2	%

Temporary differences which give rise to deferred income tax assets and (liabilities) on December 25, 2021 and December 26, 2020 are as follows (in thousands):

	2021		2020
Employee benefits	$	27,543	$	23,236
Lease liability		24,627		19,376
Net operating loss carryforwards		5,502		6,463
Foreign subsidiary capital loss carryforward		527		527
Other tax credits		450		391
Inventory		2,007		1,633
Reserves on receivables		1,446		1,630
Accrued expenses		5,735		3,071
Other, net		5,233		8,483
Gross deferred income tax assets		73,070		64,810
Valuation allowance		(3,952)		(4,044)
Deferred income tax assets		69,118		60,766
Depreciation		(64,387)		(41,403)
Intangibles		(38,367)		(22,840)
Right of use assets		(23,866)		(19,376)
Deferred income tax liabilities		(126,620)		(83,619)
Net deferred income tax liability	$	(57,502)	$	(22,853)

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As of December 25, 2021, we had federal, state and foreign net operating loss carryforwards of $5.5 million and state tax credit carryforwards of $0.5 million, which will expire at various dates.

The NOL and credit carryforwards expire as follows:

	Net Operating Losses						Tax Credits
	U.S.		State		Foreign		U.S.		State
2022 - 2026	$	—	$	—	$	536	$	—	$	—
2027 - 2031		—		436		1,424		—		—
2032 - 2036		—		670		106		—		450
2037 - 2041		790		808		—		—		—
Thereafter		—		438		294		—		—
Total	$	790	$	2,352	$	2,360	$	—	$	450

As of December 25, 2021, we believe that it is more likely than not that the benefit from certain state and foreign NOL carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $3.4 million against the various NOLs. Furthermore, there is a valuation allowance of $0.5 million against a capital loss carryforward we have for a wholly-owned subsidiary, UFP Canada, Inc. Based upon the business activity and the nature of the assets of this subsidiary, our ability to realize a future benefit from this carryforward is doubtful. The capital loss has an unlimited carryforward and therefore will not expire unless there is a change in control of the subsidiary.

K.ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

ASC 740, Income Taxes (“ASC 740”) clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. ASC 740 also provides guidance on derecognition, measurement, classification, interest and penalties, and disclosure requirements.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2021		2020		2019
Gross unrecognized tax benefits beginning of year	$	3,892	$	4,166	$	4,378
Increase in tax positions for prior years		437		(82)		(129)
Increase in tax positions for current year		839		730		768
Lapse in statute of limitations		(1,565)		(922)		(851)
Gross unrecognized tax benefits end of year	$	3,603	$	3,892	$	4,166

Our effective tax rate would have been affected by the unrecognized tax benefits had this amount been recognized as a reduction to income tax expense.

We recognized interest and penalties for unrecognized tax benefits in our provision for income taxes. The liability for unrecognized tax benefits included accrued interest and penalties of $0.5 million for each of the years December 25, 2021, December 26, 2020, and December 28, 2019.

We file income tax returns in the United States and in various state, local and foreign jurisdictions. The federal and a majority of state and foreign jurisdictions are no longer subject to income tax examinations for years before 2017. A number of routine state and local examinations are currently ongoing. Due to the potential for resolution of state examinations, the expiration of various statutes of limitation, and new positions that may be taken, it is reasonably possible that the amount of unrecognized tax benefits in the next twelve months $1.1 million.

L.COMMITMENTS, CONTINGENCIES, AND GUARANTEES

We are self-insured for environmental impairment liability, including certain liabilities which are insured through a wholly owned subsidiary, Ardellis Insurance Ltd., a licensed captive insurance company.

49

In addition, on December 25, 2021, we were parties either as plaintiff or defendant to a number of lawsuits and claims arising through the normal course of our business. In the opinion of management, our consolidated financial statements will not be materially affected by the outcome of these contingencies and claims.

On December 25, 2021, we had outstanding purchase commitments on commenced capital projects of approximately $52.7 million.

We provide a variety of warranties for products we manufacture. Historically, warranty claims have not been material. We distribute products manufactured by other companies, some of which are no longer in business. While we do not warrant these products, we have received claims as a distributor of these products when the manufacturer no longer exists or has the ability to pay. Historically, these costs have not had a material effect on our consolidated financial statements.

As part of our operations, we supply building materials and labor to site-built construction projects or we jointly bid on contracts with framing companies for such projects. In some instances we are required to post payment and performance bonds to insure the project owner that the products and installation services are completed in accordance with our contractual obligations. We have agreed to indemnify the surety for claims made against the bonds. As of December 25, 2021, we had approximately $31.5 million in outstanding payment and performance bonds for open projects. We had approximately $10.7 million in payment and performance bonds outstanding for completed projects which are still under warranty.

On December 25, 2021, we had outstanding letters of credit totaling $54.2 million, primarily related to certain insurance contracts and industrial development revenue bonds described further below.

In lieu of cash deposits, we provide irrevocable letters of credit in favor of our insurers and other lenders to guarantee our performance under certain contracts. We currently have irrevocable letters of credit outstanding totaling approximately $47.1 million for these types of arrangements. We have reserves recorded on our balance sheet, in accrued liabilities, that reflect our expected future liabilities under these arrangements.

We are required to provide irrevocable letters of credit in favor of the bond trustees for all industrial development revenue bonds that have been issued. These letters of credit guarantee principal and interest payments to the bondholders. We currently have irrevocable letters of credit outstanding totaling approximately $7.1 million related to our outstanding industrial development revenue bonds. These letters of credit have varying terms but may be renewed at the option of the issuing banks.

Certain wholly owned domestic subsidiaries have guaranteed the indebtedness of UFP Industries, Inc. in certain debt agreements, including the Series 2012, 2018 and 2020 Senior Notes and our revolving credit facility. The maximum exposure of these guarantees is limited to the indebtedness outstanding under these debt arrangements and this exposure will expire concurrent with the expiration of the debt agreements.

We did not enter into any new guarantee arrangements during 2021 which would require us to recognize a liability on our balance sheet.

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.

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We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of UFP Retail Solutions, UFP Industrial 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, Industrial, and Construction segments. Two customers, The Home Depot and Lowes, accounted for approximately 16% and 10%, respectively, of our total net sales in fiscal 2021. These customers accounted for approximately 24% and 4%, respectively, of our total net sales in fiscal 2020 and 19% and 4%, respectively, in 2019.

The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Europe, India, and Australia operations 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 and administrative functions that serve our operating segments. Operating results of Corporate primarily consist 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, certain property, equipment and other assets pertaining to the centralized activities of Corporate, UFP Real Estate, Inc., UFP Transportation Ltd, and UFP Purchasing.

	2021
							All
	Retail		Industrial		Construction		Other		Corporate		Total
Net sales to outside customers	$	3,418,337	$	2,148,142	$	2,698,434	$	362,473	$	8,748	$	8,636,134
Intersegment net sales		214,400		85,954		82,026		455,874		(838,254)		—
Interest expense		98		12		1		184		13,519		13,814
Amortization expense		2,780		6,093		3,525		1,336		214		13,948
Depreciation expense		16,955		26,219		13,151		2,094		25,765		84,184
Segment earnings before income taxes		124,790		264,958		264,238		80,905		(8,555)		726,336
Segment assets		844,189		741,672		736,157		343,363		579,890		3,245,271
Capital expenditures		40,408		42,652		22,344		5,140		40,622		151,166

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	2020
							All
	Retail		Industrial		Construction		Other		Corporate		Total
Net sales to outside customers	$	2,167,122	$	1,072,117	$	1,695,684	$	217,094	$	1,981	$	5,153,998
Intersegment net sales		142,839		45,217		68,294		283,689		(540,039)		—
Interest expense		2		22		—		90		9,197		9,311
Amortization expense		1,482		4,159		2,152		877		46		8,716
Depreciation expense		11,675		15,163		12,123		1,619		23,384		63,964
Segment earnings before income taxes		155,364		83,430		69,092		38,333		(5,236)		340,983
Segment assets		510,464		416,487		510,972		196,856		770,112		2,404,891
Capital expenditures		16,277		21,141		16,902		2,258		32,604		89,182

	2019
							All
	Retail		Industrial		Construction		Other		Corporate		Total
Net sales to outside customers	$	1,498,710	$	1,085,635	$	1,637,156	$	193,785	$	723	$	4,416,009
Intersegment net sales		135,705		45,010		56,116		200,426		(437,257)		—
Interest expense		—		108		16		97		8,479		8,700
Amortization expense		1,380		3,034		1,164		747		—		6,325
Depreciation expense		11,041		14,340		11,465		1,532		22,116		60,494
Segment earnings before income taxes		61,708		82,913		82,407		22,025		(8,379)		240,674
Segment assets		402,221		377,329		522,638		136,990		450,299		1,889,477
Capital expenditures		15,502		20,134		16,097		2,150		31,050		84,933

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

	2021				2020				2019
			Long-Lived				Long-Lived				Long-Lived
			Tangible				Tangible				Tangible
	Net Sales		Assets		Net Sales		Assets		Net Sales		Assets
United States	$	8,395,737	$	679,757	$	5,022,014	$	478,325	$	4,308,618	$	469,605
Foreign		240,397		54,873		131,984		36,380		107,391		36,878
Total	$	8,636,134	$	734,630	$	5,153,998	$	514,705	$	4,416,009	$	506,483

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The following table presents, for the periods indicated, our disaggregated net sales (in thousands) by business unit for each segment and our percentage of value-added and commodity-based sales to total net sales by segment.

	Year Ended
	December 25,		December 26,		December 28,
	2021		2020		2019
Retail
Deckorators	$	248,765	$	219,930	$	185,221
Prowood		1,349,901		1,215,201		786,720
Outdoor Essentials		392,826		299,684		227,767
Sunbelt		773,909		—		—
UFP Edge		148,927		114,987		95,608
Handprint		101,090		88,351		52,553
Retail Building Materials		395,894		225,253		149,153
Other		7,025		3,716		1,688
Total Retail	$	3,418,337	$	2,167,122	$	1,498,710
Industrial
North Industrial	$	615,092	$	385,132	$	376,515
Southeast Industrial		395,069		229,316		255,419
Southwest Industrial		400,515		238,643		241,774
West Industrial		363,300		206,022		197,686
PalletOne		355,347		—		—
Protective Packaging		18,819		13,004		14,241
Total Industrial	$	2,148,142	$	1,072,117	$	1,085,635
Construction
Factory Built	$	1,098,905	$	597,017	$	479,927
Site Built		1,190,393		725,899		708,767
Commercial		259,360		221,988		290,785
Concrete Forming		149,776		150,780		157,677
Total Construction	$	2,698,434	$	1,695,684	$	1,637,156
All Other	$	362,473	$	217,094	$	193,785
Corporate	$	8,748	$	1,981	$	723
Total Net Sales	$	8,636,134	$	5,153,998	$	4,416,009
Value-Added
Retail		43.2%		53.8%		57.8%
Industrial		67.7%		64.7%		66.2%
Construction		73.0%		76.3%		81.4%
All Other and Corporate		74.9%		75.6%		75.8%
Total		59.7%		64.3%		69.3%
Commodity-Based
Retail		56.8%		46.2%		42.2%
Industrial		32.3%		35.3%		33.8%
Construction		27.0%		23.7%		18.6%
All Other and Corporate		25.1%		24.4%		24.2%
Total		40.3%		35.7%		30.7%

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N.QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The following table sets forth selected financial information for all of the quarters, consisting of 13 weeks during the years ended December 25, 2021 and December 26, 2020, respectively, (in thousands, except per share data):

	First				Second				Third				Fourth
	2021		2020		2021		2020		2021		2020		2021		2020
Net sales	$	1,825,004	$	1,032,062	$	2,700,541	$	1,242,001	$	2,093,784	$	1,486,227	$	2,016,805	$	1,393,708
Gross profit		286,554		167,236		421,294		204,931		327,555		241,074		371,564		187,055
Net earnings		104,251		40,570		175,360		69,694		125,747		78,861		147,006		64,757
Net earnings attributable to controlling interest		103,311		40,159		173,382		66,463		121,041		77,204		137,906		62,952
Basic earnings per share		1.67		0.65		2.79		1.08		1.94		1.25		2.21		1.02
Diluted earnings per share		1.67		0.65		2.78		1.08		1.94		1.25		2.21		1.02

O.SUBSEQUENT EVENTS

On December 27, 2021, we closed on an agreement to purchase 100 percent of the equity of Ultra Aluminum Manufacturing, Inc. (Ultra) located in Howell, Michigan for approximately $26.8 million. Ultra designs and produces an extensive selection of ornamental aluminum fence and railing products for contractors, landscapers, fence dealers and wholesalers. At this time the net tangible assets and intangible assets acquired cannot be disclosed as these are pending final valuations. Initial estimates of Ultra‘s identifiable intangibles, goodwill, and deferred taxes have been made, however, the amounts will be finalized in 2022.

Effective February 15, 2022, our Board authorized an additional 1.5 million shares to be repurchased under our existing share repurchase program. Following the most recent authorization, the cumulative total authorized shares available for repurchase is approximately 2.6 million shares through the period ending February 3, 2023.

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MARKET INFORMATION FOR OUR COMMON STOCK

Our common stock trades on The Nasdaq Stock Market (“NASDAQ”) under the symbol UFPI.

STOCK PERFORMANCE GRAPH

The following stock price performance graph compares the annual percentage change in the cumulative total return on our common stock with the cumulative total returns of companies comprising the NASDAQ US Benchmark TR index and an industry peer group we selected. The NASDAQ US Benchmark TR index replaces the NASDAQ Stock Market (US Companies) Index in this analysis and going forward, as the CRSP Index data is no longer accessible. The CRSP indexes has been included with data through 2020. The graph assumes an investment of $100 on December 31, 2016, and reinvestment of dividends in all cases.

The companies included in our self-determined industry peer group are as follows:

American Woodmark Corporation	Louisiana-Pacific Corporation
BlueLinx Holdings, Inc.	Masco Corporation
Boise Cascade Company	Simpson Manufacturing Company, Inc.
Builders FirstSource, Inc.	Sonoco Products Company
Cornerstone Building Brands, Inc.	Trex Company, Inc.
Gibraltar Industries, Inc.	WestRock Company
Greif, Inc.

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The returns of each company included in the self-determined peer group are weighted according to each respective company’s stock market capitalization at the beginning of each period presented in the graph above. In determining the members of our peer group, we considered companies who selected UFPI as a member of their peer group, and looked for similarly sized companies or companies that are a good fit with the markets we serve.

DIRECTORS AND EXECUTIVE OFFICERS

BOARD OF DIRECTORS	SECTION 16 OFFICERS
William G. Currie Chairman of the Board UFP Industries, Inc.	Matthew J. Missad Chief Executive Officer
Matthew J. Missad Chief Executive Officer UFP Industries, Inc.	Patrick M. Webster President and Chief Operating Officer
Thomas W. Rhodes President and Chief Executive Officer TWR Enterprises, Inc.	Michael R. Cole Chief Financial Officer and Treasurer
Bruce A. Merino Former Senior Vice President of Merchandising The Home Depot	Allen T. Peters President and Chief Operating Officer UFP Retail Solutions, LLC
Mary Tuuk Kuras President and Chief Executive Officer Grand Rapids Symphony	Patrick Benton President UFP Construction, LLC
Brian C. Walker Partner-Strategic Leadership Huron Capital	Scott A. Worthington President UFP Industrial, LLC
Michael G. Wooldridge Partner Varnum, LLP	Scott T. Bravata Vice President of Accounting
Joan A. Budden Former President Priority Health	David A. Tutas Chief Compliance Officer General Counsel
Benjamin J. McLean Chief Executive Officer Ruan Transportation Management Systems, Inc.

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SHAREHOLDER INFORMATION

ANNUAL MEETING

The 2022 Annual Shareholder’s Meeting of UFP Industries, Inc. will be held at 8:30 a.m. on April 20, 2022, at 2880 East Beltline Lane NE, Grand Rapids, MI 49525.

SHAREHOLDER INFORMATION

Shares of our stock are traded under the symbol UFPI on the NASDAQ Stock Market. Our 10-K report, filed with the Securities and Exchange Commission, will be provided free of charge to any shareholder upon written request. For more information contact:

Investor Relations Department

UFP Industries, Inc.

2801 East Beltline NE

Grand Rapids, MI 49525

Telephone:  (616) 364-6161

Web:  www.ufpi.com

SECURITIES COUNSEL

Varnum, LLP

Grand Rapids, MI

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Deloitte & Touche LLP

Grand Rapids, MI

TRANSFER AGENT/SHAREHOLDER INQUIRIES

American Stock Transfer & Trust Company serves as the transfer agent for the Corporation. Inquiries relating to stock transfers, changes of ownership, lost or stolen stock certificates, changes of address, and dividend payments should be addressed to:

American Stock Transfer & Trust Co.

6201 15th Ave

Brooklyn, NY 11219

Telephone:  (800) 937-5449

UFP INDUSTRIES®, INC., CORPORATE HEADQUARTERS

2801 East Beltline NE

Grand Rapids, MI 49525

Telephone:  (616) 364-6161

Facsimile:  (616) 364-5558

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EX-21

EXHIBIT 21

LIST OF REGISTRANT'S SUBSIDIARIES AND AFFILIATES

11032 Tidewater Trail, LLC	Delaware	UFP Construction, LLC	Michigan
234 Springs Rd., LLC	Delaware	UFP Dallas, LLC	Michigan
2875 Needmore Rd. LLC	Delaware	UFP Distribution, LLC	Michigan
621 Hall St., LLC	Delaware	UFP Eagan, LLC	Michigan
Advantage Label & Packaging, Inc.	Michigan	UFP Eastern Division, Inc.	Michigan
Aljoma Holding Company, LLC	Michigan	UFP Eatonton, LLC	Michigan
Aljoma Lumber, Inc.	Florida	UFP Elizabeth City, LLC	Michigan
Ardellis Insurance Ltd.	Bermuda	UFP Elkwood, LLC	Michigan
Caliper Building Systems, LLC	Michigan	UFP Financial Services, Inc.	Michigan
Deckorators, Inc.	Michigan	UFP Folkston, LLC	Michigan
Enwrap Logistic and Packaging S.r.l.	Italy	UFP Franklinton, LLC	Michigan
Eovations, LLC	Michigan	UFP Gainesville, LLC	Michigan
Ficus Pax	India	UFP Gear, LLC	Michigan
Ficus Tegatai Pvt Ltd	India	UFP Global Holdings Limited	England/Wales
Fire Retardant Chemical Technologies, LLC	Illinois	UFP Gordon, LLC	Michigan
Forestal Universal SA de CV	Mexico	UFP Grand Rapids, LLC	Michigan
Idaho Western, Inc.	Idaho	UFP Grandview, LLC	Michigan
idX (China) Display System Co., Ltd.	China	UFP Granger, LLC	Michigan
idX (India) Display Private Ltd.	India	UFP Haleyville, LLC	Michigan
idX Amsterdam B.V.	Netherlands	UFP Hamilton, LLC	Michigan
idX Asia Fixtures Limited	Hong Kong	UFP Harrisonville, LLC	Michigan
idX Asia Trading Limited	Hong Kong	UFP Hartford, LLC	Wisconsin
idX Chicago, LLC	Delaware	UFP Hillsboro, LLC	Michigan
idX Corporation	Delaware	UFP Industrial, LLC	Michigan
idX Corporation London Limited	England/Wales	UFP Industries, Inc.	Michigan
idX Holdings, Inc.	Delaware	UFP International Employment Services, LLC	Michigan
idX Mexico, S. de R.L. de C.V.	Mexico	UFP International, LLC	Michigan
idX Shanghai Trading Company Ltd.	China	UFP Janesville, LLC	Michigan
Integra International Pty Ltd	Australia	UFP Kyle, LLC	Michigan
Integra Packaging Pty Ltd	Australia	UFP Lafayette, LLC	Michigan
Landura, LLC	Texas	UFP Lansing, LLC	Michigan
Metaworld Technologies, LLC	Michigan	UFP Londonderry, LLC	Michigan
North Atlantic Framing, LLC	Michigan	UFP Magna, LLC	Michigan
Norpal S. de R.L. de C.V.	Mexico	UFP McMinnville, LLC	Michigan
P1 Catawba Development Company, LLC	North Carolina	UFP Mexico Embalaje y Distribution, S. de R.L. de C. V.	Mexico
PaletOne of Acquisition of Texas, Inc.	Delaware	UFP Mexico Investment, LLC	Michigan
PalletOne Manufacturing of Texas, LLC	Texas	UFP Mid-Atlantic, LLC	Michigan
PalletOne of Alabama, LLC	Alabama	UFP Milwaukee, LLC	Michigan
PalletOne of Florida, Inc.	Florida	UFP Minneota, LLC	Michigan
PalletOne of Indiana Transportation, LLC	Indiana	UFP Morristown, LLC	Michigan
PalletOne of Indiana, Inc.	Indiana	UFP Moultrie, LLC	Michigan
PalletOne of Maine, Inc.	Maine	UFP NAC, LLC	Michigan
PalletOne of Mobile, LLC	Alabama	UFP Nappanee, LLC	Michigan
PalletOne of NE Texas, LLC	Delaware	UFP New London, LLC	Michigan
PalletOne of North Carolina, Inc.	North Carolina	UFP New Waverly, LLC	Michigan
PalletOne of Texas Holdings, Inc.	Delaware	UFP New Windsor, LLC	Michigan
PalletOne of Texas, LP	Texas	UFP New York, LLC	Michigan
PalletOne of Virginia, LLC	Virginia	UFP Orlando, LLC	Michigan
PalletOne of Wisconsin Manufacturing, LLC	Wisconsin	UFP Packaging, LLC	Michigan
PalletOne of Wisconsin, Inc.	Wisconsin	UFP Palm Beach, LLC	Michigan
PalletOne, Inc.	Delaware	UFP Parker, LLC	Michigan
Pinelli Lumber, Inc.	Texas	UFP Purchasing, Inc.	Michigan
Pinelli Universal TKT, S de R.L. de C.V.	Mexico	UFP Ranson, LLC	Michigan
Pinelli Universal, S de R.L. de C.V.	Mexico	UFP Real Estate, LLC	Michigan
Pinelli Universal Chile S.A.	Chile	UFP Retail, LLC	Michigan
PR Distribution, LLC	Puerto Rico	UFP Riverside, LLC	Michigan

Shawnlee Construction, LLC	Michigan	UFP RMS, LLC	Michigan
Shepardville Construction, LLC	Michigan	UFP Rockingham, LLC	Michigan
Store Fixtures Canada Holdings, Inc.	Delaware	UFP Rockwell, LLC	Michigan
Sunbelt Acquisition Florida II, LLC	Florida	UFP Saginaw, LLC	Michigan
Sunbelt Acquistion Corp.	Delaware	UFP Salisbury, LLC	Michigan
Sunbelt Acqusition Alabama III, LLC	Alabama	UFP San Antonio, LLC	Michigan
Sunbelt Forest Georgia, LLC	Georgia	UFP Sauk Rapids, LLC	Michigan
Sunbelt Forest Products Alabama, LLC	Florida	UFP Schertz, LLC	Michigan
Sunbelt Forest Products Corporation	Florida	UFP Shawnee, LLC	Michigan
SunOne Logistics, LLC	Georgia	UFP Site Built, LLC	Michigan
The UBEECO Group Pty Ltd	Australia	UFP Stafford, LLC	Michigan
Tibasa Universal Forest Products S. de R.L. de C.V.	Mexico	UFP Stockertown, LLC	Michigan
Tresstar, LLC	Michigan	UFP Tampa, LLC	Michigan
Triangle Systems, Inc.	Delaware	UFP Thomaston, LLC	Michigan
U.F.P. Mexico Holdings, S. de R.L.de CV	Mexico	UFP Thornton, LLC	Michigan
UFP Ashburn, LLC	Michigan	UFP Transportation, Inc.	Michigan
UFP Atlantic Division, LLC	Michigan	UFP Union City, LLC	Michigan
UFP Auburndale, LLC	Michigan	UFP Ventures II, Inc.	Michigan
UFP Aurora, LLC	Michigan	UFP Warranty Corporation	Michigan
UFP Australia Pty Ltd	Australia	UFP Warrens, LLC	Michigan
UFP Australia Real Estate Pty Ltd	Australia	UFP Washington, LLC	Michigan
UFP Barnesville, LLC	Michigan	UFP Western Division, Inc.	Michigan
UFP Belchertown, LLC	Michigan	UFP White Bear Lake, LLC	Michigan
UFP Berlin, LLC	Michigan	UFP Windsor, LLC	Michigan
UFP Biscoe, LLC	Michigan	UFP Woodburn, LLC	Michigan
UFP Blanchester, LLC	Michigan	Ultra Aluminum Manufacturing, Inc.	Michigan
UFP Bonner, LLC	Michigan	United Lumber & Reman, LLC	Alabama

EX-23

Exhibit 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in Registration Statement Nos. 33-81128, 333-60630, 333-150345, 333-156596, and 33-84632 on Form S-8 of our reports dated February 23, 2022, relating to the consolidated financial statements of UFP Industries, Inc. and subsidiaries (the “Company”), and the effectiveness of the Company’s internal control over financial reporting appearing in this Annual Report on Form 10-K for the year ended December 25, 2021.

/s/ Deloitte & Touche LLP

Grand Rapids, Michigan

February 23, 2022

EX-31.A

Exhibit 31(a)

UFP Industries, Inc.

Certification

I, Matthew J. Missad, certify that:

1.           I have reviewed this report on Form 10-K of UFP Industries, Inc.;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.           Designed such internal control over financial reporting, or caused such internal control over financial reporting to designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.           Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.           Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.           The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the Audit Committee of registrant's Board of Directors (or persons performing the equivalent functions):

a.           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	February 23, 2022	/s/ Matthew J. Missad
		Matthew J. Missad
		Chief Executive Officer and
		Principal Executive Officer

EX-31.B

Exhibit 31(b)

UFP Industries, Inc.

Certification

I, Michael R. Cole, certify that:

1.           I have reviewed this report on Form 10-K of UFP Industries, Inc.;

2.           Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.           Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.           The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.           Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.           Designed such internal control over financial reporting, or caused such internal control over financial reporting to designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.           Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.           Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.           The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the Audit Committee of registrant's Board of Directors (or persons performing the equivalent functions):

a.           All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.           Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	February 23, 2022	/s/ Michael R. Cole
		Michael R. Cole
		Chief Financial Officer,
		Principal Financial Officer and
		Principal Accounting Officer

EX-32.A

Exhibit 32(a)

CERTIFICATE OF THE

CHIEF EXECUTIVE OFFICER OF

UFP INDUSTRIES, INC.

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350):

I, Matthew J. Missad, Chief Executive Officer of UFP Industries, Inc., certify, to the best of my knowledge and belief, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) that:

(1)         The report on Form 10-K for the year ended December 25, 2021, which this statement accompanies, fully complies with requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)         The information contained in this report on Form 10-K for the period ended December 25, 2021 fairly presents, in all material respects, the financial condition and results of operations of Universal Forest Products, Inc.

		UFP INDUSTRIES, INC.
Date:	February 23, 2022	By:	/s/ Matthew J. Missad
			Matthew J. Missad
		Its:	Chief Executive Officer and
			Principal Executive Officer

The signed original of this written statement required by Section 906, or any other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to UFP Industries, Inc. and will be retained by UFP Industries, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.B

Exhibit 32(b)

CERTIFICATE OF THE

CHIEF FINANCIAL OFFICER OF

UFP INDUSTRIES, INC.

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350):

I, Michael R. Cole, Chief Financial Officer of UFP Industries, Inc., certify, to the best of my knowledge and belief, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350) that:

(1)         The report on Form 10-K for the period ended December 25, 2021, which this statement accompanies, fully complies with requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)         The information contained in this report on Form 10-K for the period ended December 25, 2021 fairly presents, in all material respects, the financial condition and results of operations of UFP Industries, Inc.

		UFP INDUSTRIES, INC.
Date:	February 23, 2022	By:	/s/ Michael R. Cole
			Michael R. Cole
		Its:	Chief Financial Officer,
			Principal Financial Officer and
			Principal Accounting Officer

The signed original of this written statement required by Section 906, or any other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to UFP Industries, Inc. and will be retained by UFP Industries, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 25, 2021	Jan. 30, 2022	Jun. 25, 2021
Document and Entity Information
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 25, 2021
Entity File Number	0-22684
Entity Registrant Name	UFP INDUSTRIES, INC.
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	38-1465835
Entity Address, Address Line One	2801 East Beltline, N.E.
Entity Address, City or Town	Grand Rapids
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	49525
City Area Code	616
Local Phone Number	364-6161
Title of 12(b) Security	Common Stock, $1 par value
Trading Symbol	UFPI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		61,905,218
ICFR Auditor Attestation Flag	true
Auditor Name	Deloitte & Touche LLP
Auditor Firm ID	34
Auditor Location	Grand Rapids, Michigan
Current Fiscal Year End Date	--12-25
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Entity Central Index Key	0000912767
Amendment Flag	false
Entity Public Float			$ 4,240,620,108
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 25, 2021	Dec. 26, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 286,662	$ 436,507
Restricted cash	4,561	101
Investments	36,495	24,308
Accounts receivable, net	737,805	470,504
Inventories:
Raw materials	416,043	316,481
Finished goods	547,277	250,813
Total inventories	963,320	567,294
Refundable income taxes	4,806	5,836
Other current assets	39,827	33,812
TOTAL CURRENT ASSETS	2,073,476	1,538,362
DEFERRED INCOME TAXES	3,462	2,413
RESTRICTED INVESTMENTS	19,310	17,565
RIGHT OF USE ASSETS	96,703	77,245
OTHER ASSETS	31,876	20,298
GOODWILL	315,038	252,193
INDEFINITE-LIVED INTANGIBLE ASSETS	7,369	7,401
OTHER INTANGIBLE ASSETS, NET	109,017	72,252
PROPERTY, PLANT AND EQUIPMENT:
Land and improvements	163,289	128,301
Building and improvements	329,698	272,864
Machinery and equipment	632,864	525,542
Furniture and fixtures	24,063	21,110
Construction in progress	62,199	26,680
PROPERTY, PLANT AND EQUIPMENT, GROSS	1,212,113	974,497
Less accumulated depreciation and amortization	(623,093)	(557,335)
PROPERTY, PLANT AND EQUIPMENT, NET	589,020	417,162
TOTAL ASSETS	3,245,271	2,404,891
CURRENT LIABILITIES:
Cash overdraft	17,030
Accounts payable	319,125	211,518
Accrued liabilities:
Compensation and benefits	289,196	166,478
Other	84,853	69,104
Current portion of lease liability	23,155	16,549
Current portion of long-term debt	42,683	100
TOTAL CURRENT LIABILITIES	776,042	463,749
LONG-TERM DEBT	277,567	311,607
LEASE LIABILITY	76,632	61,509
DEFERRED INCOME TAXES	60,964	25,266
OTHER LIABILITIES	37,497	59,608
TOTAL LIABILITIES	1,228,702	921,739
Controlling interest shareholders' equity:
Preferred stock, no par value; shares authorized 1,000,000; issued and outstanding, none
Common stock, $1 par value; shares authorized 80,000,000; issued and outstanding, 61,901,851 and 61,205,780	61,902	61,206
Additional paid-in capital	243,995	218,224
Retained earnings	1,678,121	1,182,680
Accumulated other comprehensive loss	(5,405)	(1,794)
Total controlling interest shareholders' equity	1,978,613	1,460,316
Noncontrolling interest	37,956	22,836
TOTAL SHAREHOLDERS' EQUITY	2,016,569	1,483,152
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 3,245,271	$ 2,404,891

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 25, 2021	Dec. 26, 2020
SHAREHOLDERS' EQUITY:
Preferred stock, no par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common Stock, Par or Stated Value Per Share	$ 1	$ 1
Common stock, shares authorized (in shares)	80,000,000	80,000,000
Common stock, shares issued (in shares)	61,901,851	61,205,780
Common stock, shares outstanding (in shares)	61,901,851	61,205,780

XML

CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
NET SALES	$ 8,636,134	$ 5,153,998	$ 4,416,009
COST OF GOODS SOLD	7,229,167	4,353,702	3,730,491
GROSS PROFIT	1,406,967	800,296	685,518
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	682,253	444,596	439,047
OTHER (GAINS) LOSSES, NET	(12,840)	9,874	1,565
EARNINGS FROM OPERATIONS	737,554	345,826	244,906
INTEREST EXPENSE	13,814	9,311	8,700
INTEREST AND INVESTMENT INCOME	(6,498)	(4,468)	(4,468)
EQUITY IN EARNINGS OF INVESTEE	3,902
NON-OPERATING (INCOME)/EXPENSE	11,218	4,843	4,232
EARNINGS BEFORE INCOME TAXES	726,336	340,983	240,674
INCOME TAXES	173,972	87,101	58,270
NET EARNINGS	552,364	253,882	182,404
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST	(16,724)	(7,104)	(2,754)
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST	$ 535,640	$ 246,778	$ 179,650
EARNINGS PER SHARE - BASIC (USD per share)	$ 8.61	$ 4.00	$ 2.91
EARNINGS PER SHARE - DILUTED (USD per share)	$ 8.59	$ 4.00	$ 2.91
OTHER COMPREHENSIVE INCOME:
NET EARNINGS	$ 552,364	$ 253,882	$ 182,404
OTHER COMPREHENSIVE GAIN (LOSS)	(5,296)	5,967	1,513
COMPREHENSIVE INCOME	547,068	259,849	183,917
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	(15,039)	(9,976)	(3,218)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST	$ 532,029	$ 249,873	$ 180,699

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Earnings	Noncontrolling Interest	Total
Beginning balance at Dec. 29, 2018	$ 60,884	$ 178,540	$ 839,917	$ (5,938)	$ 15,281	$ 1,088,684
Increase (Decrease) in Stockholders' Equity
Net earnings			179,650		2,754	182,404
Foreign currency translation adjustment				568	464	1,032
Unrealized loss on investment & foreign currency				481		481
Distributions to noncontrolling interest					(2,143)	(2,143)
Acquisitions of noncontrolling interest		(4,737)			(2,338)	(7,075)
Cash dividends			(24,549)			(24,549)
Issuance of shares under employee stock purchase plan	34	1,059				1,093
Issuance of shares under stock grant programs	310	5,654	4			5,968
Issuance of shares under deferred compensation plans	181	(181)
Expense associated with share-based compensation arrangements		3,843				3,843
Accrued expense under deferred compensation plans		7,995				7,995
Ending balance at Dec. 28, 2019	61,409	192,173	995,022	(4,889)	14,018	1,257,733
Increase (Decrease) in Stockholders' Equity
Net earnings			246,778		7,104	253,882
Foreign currency translation adjustment				1,373	2,872	4,245
Unrealized gain on debt securities				1,722		1,722
Distributions to noncontrolling interest					(933)	(933)
Acquisitions of noncontrolling interest		130			(225)	(95)
Cash dividends			(30,669)			(30,669)
Issuance of shares under employee stock purchase plan	35	1,360				1,395
Issuance of shares under stock grant programs	390	12,140	5			12,535
Issuance of shares under deferred compensation plans	128	(128)
Repurchase of shares	(756)		(28,456)			(29,212)
Expense associated with share-based compensation arrangements		3,905				3,905
Accrued expense under deferred compensation plans		8,644				8,644
Ending balance at Dec. 26, 2020	61,206	218,224	1,182,680	(1,794)	22,836	1,483,152
Increase (Decrease) in Stockholders' Equity
Net earnings			535,640		16,724	552,364
Foreign currency translation adjustment				(2,584)	(1,685)	(4,269)
Unrealized gain on investments and other				(1,027)		(1,027)
Noncontrolling interest associated with business acquisitions					6,831	6,831
Distributions to noncontrolling interest					(6,750)	(6,750)
Cash dividends			(40,209)			(40,209)
Issuance of shares under employee stock purchase plan	33	2,083				2,116
Issuance of shares under stock grant programs	546	3,506	10			4,062
Issuance of shares under deferred compensation plans	117	(117)
Expense associated with share-based compensation arrangements		11,071				11,071
Accrued expense under deferred compensation plans		9,228				9,228
Ending balance at Dec. 25, 2021	$ 61,902	$ 243,995	$ 1,678,121	$ (5,405)	$ 37,956	$ 2,016,569

XML

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Increase (Decrease) in Stockholders' Equity
Cash dividends per share (USD per share)	$ 0.65	$ 0.50	$ 0.40
Net issuance of shares under employee stock plans (in shares)	33,104	35,133	33,647
Issuance of shares under deferred compensation plans (in shares)	116,732	127,735	181,565
Repurchase of shares (in shares)	0	756,397
No of shares under stock grant programs	546,235	390,720	309,628

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 552,364	$ 253,882	$ 182,404
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation	84,184	63,964	60,494
Amortization of intangibles	13,948	8,716	6,325
Expense associated with share-based and grant compensation arrangements	11,224	4,034	4,007
Deferred income taxes	5,653	1,857	7,176
Unrealized gain on investments and other	(4,118)	(2,076)	(2,523)
Equity in earnings of investee	3,902
Net gain on sale and disposition of assets	(11,992)	1,470	1,565
Goodwill impairment		11,485
Gain from reduction of estimated earnout liability		(4,134)
Changes in:
Accounts receivable	(85,439)	(87,552)	(16,872)
Inventories	(260,301)	(76,022)	73,120
Accounts payable and cash overdraft	78,060	62,405	(24,132)
Accrued liabilities and other	124,992	98,448	57,727
NET CASH PROVIDED BY OPERATING ACTIVITIES	512,477	336,477	349,291
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(151,166)	(89,182)	(84,933)
Proceeds from sale of property, plant and equipment	29,973	2,922	1,777
Acquisitions and purchases of non-controlling interest, net of cash received	(475,960)	(65,255)	(39,122)
Investment in life insurance contracts			(15,253)
Purchases of investments	(23,797)	(28,054)	(13,352)
Proceeds from sale of investments	14,882	24,805	9,828
Other	(5,119)	46	(982)
NET CASH USED IN INVESTING ACTIVITIES	(611,187)	(154,718)	(142,037)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities	892,072	6,862	422,057
Repayments under revolving credit facilities	(888,695)	(6,498)	(460,537)
Contingent consideration payments and other	(3,176)	(5,787)	(3,136)
Issuance of long-term debt		150,000
Proceeds from issuance of common stock	2,116	1,395	1,093
Dividends paid to shareholders	(40,209)	(30,669)	(24,549)
Distributions to noncontrolling interest	(6,750)	(932)	(2,216)
Repurchase of common stock		(29,212)
Other	(364)	62	20
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES	(45,006)	85,221	(67,268)
Effect of exchange rate changes on cash	(1,669)	962	482
NET CHANGE IN CASH AND CASH EQUIVALENTS	(145,385)	267,942	140,468
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR	436,608	168,666	28,198
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$ 291,223	$ 436,608	$ 168,666

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CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL (Parenthetical) - USD ($) $ in Thousands	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:
Cash and cash equivalents, beginning of period	$ 436,507	$ 168,336	$ 27,316
Restricted cash, beginning of period	101	330	882
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR	436,608	168,666	28,198
Cash and cash equivalents, end of period	286,662	436,507	168,336
Restricted cash, end of period	4,561	101	330
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$ 291,223	$ 436,608	$ 168,666

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CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL AND NON-CASH FINANCING ACTIVITIES (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
SUPPLEMENTAL INFORMATION:
Interest paid	$ 14,077	$ 7,204	$ 8,763
Income taxes paid	167,043	77,964	50,224
NON-CASH INVESTING ACTIVITIES
Capital expenditures included in accounts payable	3,256
NON-CASH FINANCING ACTIVITIES:
Common stock issued under deferred compensation plans	$ 7,487	$ 6,870	$ 6,229

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 25, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

OPERATIONS

We are a holding company whose subsidiaries supply wood, wood composite and other products to three markets: retail, construction and industrial. Founded in 1955, we are headquartered in Grand Rapids, Michigan, with affiliates throughout North America, Europe, Asia and Australia.

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships. In addition, we consolidate any entity which we own 50% or more and exercise control. Intercompany transactions and balances have been eliminated.

NONCONTROLLING INTEREST IN SUBSIDIARIES

Noncontrolling interest in results of operations of consolidated subsidiaries represents the noncontrolling shareholders’ share of the income or loss of various consolidated subsidiaries. The noncontrolling interest reflects the original investment by these noncontrolling shareholders combined with their proportional share of the earnings or losses of these subsidiaries, net of distributions paid.

FISCAL YEAR

Our fiscal year is a 52 or 53 week period, ending on the last Saturday of December. Unless otherwise stated, references to 2021, 2020, and 2019 relate to the fiscal years ended December 25, 2021, December 26, 2020, and December 28, 2019, respectively. Fiscal years 2021, 2020, and 2019 were comprised of 52 weeks.

FAIR VALUE DISCLOSURES OF FINANCIAL INSTRUMENTS

We follow ASC Topic 820, Fair Value Measurements and Disclosures, which provides a consistent definition of fair value, focuses on exit price, prioritizes the use of market-based inputs over entity-specific inputs for measuring fair value and establishes a three-tier hierarchy for fair value measurements. This topic requires fair value measurements to be classified and disclosed in one of the following three categories:

● Level 1 — Financial instruments with unadjusted, quoted prices listed on active market exchanges.

● Level 2 — Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. Financial instrument values are determined using prices for recently traded financial instruments with similar underlying terms and direct or indirect observational inputs, such as interest rates and yield curves at commonly quoted intervals.

● Level 3 — Financial instruments not actively traded on a market exchange and there is little, if any, market activity. Values are determined using significant unobservable inputs or valuation techniques.

Our investment portfolio includes restricted investments within our wholly-owned subsidiary, Ardellis Insurance Ltd. There are $19.3 million of restricted investments recorded as of December 25, 2021.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash and highly liquid investments purchased with an original maturity of three months or less.

INVESTMENTS

Investments are deemed to be "available for sale" and are, accordingly, carried at fair value being the quoted market value.

ACCOUNTS RECEIVABLE AND ALLOWANCES

We perform periodic credit evaluations of our customers and generally do not require collateral. Accounts receivable are due under a range of terms we offer to our customers. Discounts are offered, in most instances, as an incentive for early payment.

We base our allowances related to receivables on historical credit and collections experience, reasonable and supportable forecasts, and the specific identification of other potential problems, including the general economic climate. Actual collections can differ, requiring adjustments to the allowances. Individual accounts receivable balances are evaluated on a monthly basis, and those balances considered uncollectible are charged to the allowance.

The following table presents the activity in our accounts receivable allowances (in thousands):

			Additions
			Charged to
	Beginning		Costs and				Ending
	Balance		Expenses		Deductions*		Balance
Year Ended December 25, 2021:
Allowance for possible losses on accounts receivable	$	4,629	$	66,883	$	(66,427)	$	5,085
Year Ended December 26, 2020:
Allowance for possible losses on accounts receivable	$	4,440	$	48,954	$	(48,765)	$	4,629
Year Ended December 28, 2019:
Allowance for possible losses on accounts receivable	$	2,601	$	39,481	$	(37,642)	$	4,440

* Includes accounts charged off, discounts given to customers and actual customer returns and allowances.

We record estimated sales returns, discounts, and other applicable adjustments as a reduction of net sales in the same period revenue is recognized.

Accounts receivable retainage amounts related to long term construction contracts totaled $7.8 million and $8.7 million as of December 25, 2021 and December 26, 2020, respectively. All amounts are expected to be collected within 18 months. Concentration of accounts receivable related to our two largest customers totaled $87.6 million and $97.9 million as of December 25, 2021 and December 26, 2020, respectively.

In June 2016, the FASB issued ASU 2016-13, Financial Instrument-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which changes the current incurred loss model to a forward looking expected credit loss model for most financial assets, such as trade and other receivables, loans and other instruments. The ASU is effective for fiscal years beginning after December 15, 2019. Entities are required to apply the provisions of the standard through a cumulative-effect adjustment to retained earnings as of effective date. We have adopted the new standard as of the beginning of fiscal year 2020 and have concluded the standard does not have a material impact on our consolidated financial statements and disclosures, accounting processes, and internal controls.

INVENTORIES

Inventories are stated at the lower of cost or market. The cost of inventories includes raw materials, direct labor, and manufacturing overhead. Cost is determined on a weighted average basis. Raw materials consist primarily of unfinished wood products and other materials expected to be manufactured or treated prior to sale, while finished goods represent various manufactured and treated wood products ready for sale. We have inventory on consignment at customer locations valued at $37.8 million as of December 25, 2021 and $20.8 million as of December 26, 2020.

PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment are stated at cost. Expenditures for renewals and betterments are capitalized, and maintenance and repairs are expensed as incurred. Amortization of assets held under finance leases is included in depreciation and amortized over the shorter of the estimated useful life of the asset or the lease term. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets as follows:

Land improvements	5 to 15 years
Buildings and improvements	10 to 32 years
Machinery, equipment and office furniture	2 to 20 years

Software costs are included in machinery and equipment on the balance sheet with gross amounts and accumulated amortization totaling $6.0 million and $5.3 million as of December 25, 2021, and $5.5 million and $4.9 million as of December 26, 2020, respectively.

LONG-LIVED ASSETS

In accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), when an indicator of potential impairment exists, we evaluate the recoverability of our long-lived assets by determining whether unamortized balances could be recovered through undiscounted future operating cash flows over the remaining lives of the assets. If the sum of the expected future cash flows was less than the carrying value of the assets, an impairment loss would be recognized for the excess of the carrying value over the fair value.

GOODWILL

Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are subject to impairment tests at least annually in accordance with ASC 350, Intangibles-Goodwill and Other. We review the carrying amounts of goodwill and other non-amortizable intangibles by reporting unit to determine if such assets may be impaired. As of the date of the most recent goodwill impairment test, which utilized data and assumptions as of September 25, 2021, all other reporting units had a fair value that was substantially in excess of the carrying value. In the fourth quarter of 2020, we recorded a non-cash goodwill impairment charge of $11.5 million related to the commercial reporting unit within our construction segment. We believe we have sufficient available information, both current and historical, to support our assumptions, judgments and estimates used in the goodwill impairment test.

Our annual testing date for evaluating goodwill and indefinite-lived intangible asset impairment is the first day of our fourth fiscal quarter for all reporting units. Additionally, we review various triggering events throughout the year to determine whether a mid-year impairment analysis is required.

FOREIGN CURRENCY

Our foreign operations use the local currency as their functional currency. Accordingly, assets and liabilities are translated at exchange rates as of the balance sheet date and revenues and expenses are translated using weighted average rates, with translation adjustments included as a separate component of shareholders’ equity. Gains and losses arising from re-measuring foreign currency transactions are included in earnings.

INSURANCE RESERVES

Our wholly-owned insurance company, Ardellis Insurance Ltd.(“Ardellis”), was incorporated on April 21, 2001 under the laws of Bermuda and is licensed as a Class 3A insurer under the Insurance Act 1978 of Bermuda.  On April 14, 2017 the U.S. Branch of Ardellis Insurance Ltd. was granted its Certificate of Authority to transact property and casualty insurance lines as an admitted carrier in the State of Michigan.

We are primarily self-insured for certain employee health benefits, and have self-funded retentions for general liability, automobile liability, property and workers’ compensation. We are fully self-insured for environmental liabilities. The general liability, automobile liability, property, workers’ compensation, and certain environmental liabilities are managed through Ardellis; the related assets and liabilities of which are included in the consolidated financial statements as of December 25, 2021 and December 26, 2020. Our policy is to accrue amounts equal to actuarially determined or internally computed liabilities. The actuarial and internal valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical cost trends, and changes in claims experience could cause these estimates to change in the future.

In addition to providing coverage for the Company, Ardellis provides Excess Loss Insurance (primarily medical and prescription drug) to certain third parties. As of December 25, 2021, Ardellis had 43 such contracts in place. Reserves associated with these contracts were $7.1 million at December 25, 2021, and $4.5 million at December 26, 2020, and are accrued based on third party actuarial valuations of the expected future liabilities.

INCOME TAXES

Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred income tax assets to the amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred income tax assets and liabilities.

REVENUE RECOGNITION

Within the three primary segments (Retail, Industrial, and Construction) that the Company operates, there are a variety of written agreements governing the sale of our products and services. The transaction price is stated at the purchase order level, which includes shipping and/or freight costs and any applicable governmental authority taxes. The majority of our contracts have a single performance obligation concentrated around the delivery of goods to the carrier, Free On Board (FOB) shipping point. Therefore, revenue is recognized when this performance obligation is satisfied. Generally, title and control passes at the time of shipment. In certain circumstances, the customer takes title when the shipment arrives at the destination. However, our shipping process is typically completed the same day.

Certain customer products that we provide require installation by the Company or a third party. Installation revenue is recognized upon completion. If we use a third party for installation, the party will act as an agent to us until completion of the installation. Installation revenue represents an immaterial share of our total net sales.

We utilize rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized.

Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred related to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced related to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent.

Our construction contracts are generally entered into with a fixed price and completion of the projects can range from 6 to 18 months in duration. Therefore, our operating results are impacted by, among many other things, labor rates and commodity costs. During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist.

The following table presents our net sales disaggregated by revenue source (in thousands):

	Year Ended
	December 25,		December 26,		December 28,		2021 vs. 2020	2020 vs. 2019
	2021		2020		2019		% Change	% Change
FOB Shipping Point Revenue	$	8,512,012	$	5,025,895	$	4,272,583	69.4%	17.6%
Construction Contract Revenue		124,122		128,103		143,426	(3.1)%	(10.7)%
Total Net Sales	$	8,636,134	$	5,153,998	$	4,416,009	67.6%	16.7%

The Construction segment comprises the construction contract revenue shown above. Construction contract revenue is primarily made up of site-built and framing customers.

The following table presents the balances of over time accounting accounts on December 25, 2021 and December 26, 2020 which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands):

	December 25,		December 26,
	2021		2020
Cost and Earnings in Excess of Billings	$	5,602	$	4,169
Billings in Excess of Cost and Earnings		10,744		11,530

SHIPPING AND HANDLING OF PRODUCT

Shipping and handling costs that are charged to and reimbursed by the customer are recognized as revenue. Costs incurred related to the shipment and handling of products are classified in cost of goods sold.

SHARE-BASED COMPENSATION

We account for share-based awards in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”), which requires recognition of share-based compensation costs in financial statements based on fair value. Compensation cost is recognized over the period during which an employee is required to provide services in exchange for the award (the requisite service period). Forfeitures are recognized as they occur.

EARNINGS PER SHARE

Earnings per share (“EPS”) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and their respective participation rights in undistributed earnings. Participating securities include non-vested shares of restricted stock in which the participants have non-forfeitable rights to dividends during the performance period. EPS, basic and diluted, is calculated by dividing net earnings attributable to controlling interest, net of applicable taxes, by the weighted average number of shares of common stock outstanding for the period. The computation of EPS is as follows (in thousands):

	December 25,		December 26,		December 28,
	2021		2020		2019
Numerator:
Net earnings attributable to controlling interest	$	535,640	$	246,778	$	179,650
Adjustment for earnings allocated to non-vested restricted common stock		(17,342)		(6,903)		(4,496)
Net earnings for calculating EPS	$	518,298	$	239,875	$	175,154
Denominator:
Weighted average shares outstanding		62,209		61,632		61,649
Adjustment for non-vested restricted common stock		(2,014)		(1,724)		(1,543)
Shares for calculating basic EPS		60,195		59,908		60,106
Effect of dilutive restricted common stock		159		20		24
Shares for calculating diluted EPS		60,354		59,928		60,130
Net earnings per share:
Basic	$	8.61	$	4.00	$	2.91
Diluted	$	8.59	$	4.00	$	2.91

USE OF ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. We believe our estimates to be reasonable; however, actual results could differ from these estimates.

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FAIR VALUE

12 Months Ended

Dec. 25, 2021

FAIR VALUE

B.FAIR VALUE

We apply the provisions of ASC 820, Fair Value Measurements and Disclosures, to assets and liabilities measured at fair value. Assets and liabilities measured at fair value are as follows:

	December 25, 2021								December 26, 2020
	Quoted		Prices with						Quoted		Prices with
	Prices in		Other			Prices with			Prices in		Other			Prices with
	Active		Observable			Unobservable			Active		Observable			Unobservable
	Markets		Inputs			Inputs			Markets		Inputs			Inputs
	(Level 1)		(Level 2)			(Level 3)	Total		(Level 1)		(Level 2)			(Level 3)	Total
Money market funds	$	19	$	9,392	$	—	$	9,411	$	19	$	4,643	$	—	$	4,662
Fixed income funds		1,668		16,910		—		18,578		246		16,224		—		16,470
Treasury securities		342		—		—		342		—		—		—		—
Equity securities		20,163		—		—		20,163		12,602		—		—		12,602
Alternative investments		—		—		3,785		3,785		—		—		2,040		2,040
Mutual funds:
Domestic stock funds		10,910		—		—		10,910		8,088		—		—		8,088
International stock funds		1,687		—		—		1,687		1,440		—		—		1,440
Target funds		23		—		—		23		114		—		—		114
Bond funds		146		—		—		146		147		—		—		147
Alternative funds		483		—		—		483		482		—		—		482
Total mutual funds		13,249		—		—		13,249		10,271		—		—		10,271
Total	$	35,441	$	26,302	$	3,785	$	65,528	$	23,138	$	20,867	$	2,040	$	46,045
Assets at fair value	$	35,441	$	26,302	$	3,785	$	65,528	$	23,138	$	20,867	$	2,040	$	46,045

From the assets measured at fair value as of December 25, 2021, listed in the table above, $9.0 million of money market funds are held in Cash and Cash Equivalents, $36.5 million of mutual funds, equity securities, and alternative investments are held in Investments, $0.7 million of money market and mutual funds are held in Other Assets for our deferred compensation plan, and $18.9 million of fixed income funds and $0.4 million of money market funds are held in Restricted Investments.

We maintain money market, mutual funds, bonds, and/or stocks in our non-qualified deferred compensation plan and our wholly owned licensed captive insurance company, and assets held in financial institutions. These funds are valued at prices quoted in an active exchange market and are included in "Cash and Cash Equivalents", "Investments", "Other Assets", and “Restricted Investments.” We have elected not to apply the fair value option under ASC 825, Financial Instruments, to any of our financial instruments except for those expressly required by U.S. GAAP.

During 2018, we purchased a private real estate income trust which is valued as a Level 3 asset and is categorized as an “Alternative Investment.”

In accordance with our investment policy, our wholly-owned company, Ardellis Insurance Ltd. ("Ardellis"), maintains an investment portfolio, totaling $55.4 million as of December 25, 2021, consisting of domestic and international stocks, alternative investments, and fixed income bonds.

Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands):

	December 25, 2021						December 26, 2020
			Unrealized						Unrealized
	Cost		Gain		Fair Value		Cost		Gain		Fair Value
Fixed Income	$	18,169	$	409	$	18,578	$	15,325	$	1,145	$	16,470
Treasury Securities		342		—		342		—		—		—
Equity		15,196		4,967		20,163		9,787		2,815		12,602
Mutual Funds		9,222		3,325		12,547		8,235		1,430		9,665
Alternative Investments		3,003		782		3,785		1,904		136		2,040
Total	$	45,932	$	9,483	$	55,415	$	35,251	$	5,526	$	40,777

Our fixed income investments consist of a blend of US Government and Agency bonds and investment grade corporate bonds with varying maturities.  Our equity investments consist of small, mid, and large cap growth and value funds, as well as international equity. Our alternative investments consist of the private real estate income trust which is valued as a Level 3 asset.  The net pre-tax unrealized gain was $9.5 million for the year ended December 25, 2021. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of December 25, 2021 and December 26, 2020.

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BUSINESS COMBINATIONS

12 Months Ended

Dec. 25, 2021

BUSINESS COMBINATIONS

C.BUSINESS COMBINATIONS

We completed the following business combinations in fiscal 2021 and 2020, which were accounted for using the purchase method (in thousands).

					Net
Company	Acquisition		Intangible		Tangible		Operating
Name	Date	Purchase Price	Assets		Assets		Segment
	December 20, 2021	$20,854 cash paid for 100% stock purchase	$	11,481	$	9,373	Industrial
Advantage Labels & Packaging, Inc. (Advantage)	Based in Grand Rapids, Michigan, Advantage provides blank and customized labels, printers, label applicators and other packaging supplies. Key industries served by the company include beer and beverage; body armor; food production and processing; greenhouse and nursery; hobby and craft; manufacturing; and automotive. The company had trailing 12-month sales through November 2021 of approximately $19.8 million.
	November 22, 2021	$11,155 cash paid for 70% stock purchase	$	9,106	$	2,049	Other
Ficus Pax Private Limited (Ficus)	Headquartered in Bangalore, India, Ficus manufactures mixed-material cases and crates, nail-less plywood boxes, wooden pallets and other packaging products through 10 facilities located in major industrial markets throughout southern India. Ficus also owns a majority stake in Wadpack, a manufacturer of corrugated fiber board containers, corrugated pallets and display solutions. The company had trailing 12-month sales through August 2021 of approximately $39 million USD.
	November 1, 2021	$5,984 cash paid for 100% asset purchase and estimated contingent consideration	$	5,681	$	303	Other
Boxpack Packaging (Boxpack)	Based near Melbourne, Australia, Boxpack specializes in flexographic and lithographic cardboard packaging, using the latest CAD design and finishing techniques. Boxpack serves multiple industries, including food and beverage, confectionary, pharmaceutical, industrial and agricultural. The company had trailing 12-month sales through June 30, 2021, of $8.2 million AUD.
	September 27, 2021	$6,443 cash paid for 100% asset purchase and estimated contingent consideration	$	4,039	$	2,404	Construction
Shelter Products, Inc. (Shelter)	Based in Haleyville, Alabama, Shelter operates its distribution and logistics business from an 87,800 sq.-ft. warehouse that specializes in manufactured housing industry customers. Shelter’s facility is adjacent to a UFP manufacturing facility that supplies trusses to manufactured housing builders, and the proximity will enable additional operational synergies. The Company had sales of approximately $11.4 million in 2020.
	April 29, 2021	$10,129 cash paid for 100% asset purchase	$	7,099	$	3,030	Construction
Endurable Building Products, LLC (Endurable)	Based near Minneapolis, Minnesota, Endurable is a leading manufacturer of customized structural aluminum systems and products for exterior purposes, such as deck framing, balconies, sunshades, railings and stairs. The company’s trademarked alumiLAST aluminum deck and balcony systems are known for their low-maintenance design and ease of installation. Endurable serves general contractors in the multifamily market throughout the U.S. and had sales of approximately $15 million in 2020.
	April 19, 2021	$8,549 cash paid for 100% asset purchase	$	1,526	$	7,023	Retail
Walnut Hollow Farm, Inc.	Walnut Hollow Farm, located in Wisconsin, is engaged in the business of designing, manufacturing, selling, and distributing wood products, tools, and accessories for the craft and hobby, outdoor sportsman art, personalized home décor, and hardware categories, with sales of approximately $11.6 million in 2020.

					Net
Company	Acquisition		Intangible		Tangible		Operating
Name	Date	Purchase Price	Assets		Assets		Segment
	April 12, 2021	$153,462 cash paid for 100% asset purchase	$	—	$	153,462	Retail
Spartanburg Forest Products, Inc.	Headquartered in Greer, South Carolina, Spartanburg Forest Products and its affiliates are a premier wood treating operation in the U.S., with approximately 150 employees and operations in five states. Its affiliates include Appalachian Forest Products, Innovative Design Industries, Blue Ridge Wood Preserving, Blue Ridge Wood Products, and Tidewater Wood Products and had combined sales of approximately $543.0 million in 2020.
	March 1, 2021	$4,724 cash paid for 100% asset purchase and estimated contingent consideration	$	4,264	$	460	Other
J.C. Gilmore Pty Ltd (Gilmores)	Founded in 1988 and operating from its distribution facility in Port Melbourne, Australia, Gilmores is a leading distributor in the industrial and construction industries of packaging tapes, stretch films, packaging equipment, strapping, construction protection products and other items, with 2020 sales of $15 million AUD ($10 million USD).
	December 28, 2020	$259,011 cash paid for 100% stock purchase	$	79,917	$	179,094	Retail/Industrial
PalletOne, Inc. (PalletOne)	Based in Bartow, Florida, PalletOne is a leading manufacturer of new pallets in the U.S., with 17 pallet manufacturing facilities in the southern and eastern regions of the country. The company also supplies other specialized industrial packaging, including custom bins and crates, and its Sunbelt Forest Products (Sunbelt) subsidiary operates five pressure-treating facilities in the Southeastern U.S. PalletOne and its affiliates had 2020 sales of $698 million.
	November 10, 2020	$21,268 cash paid for 100% asset purchase	$	11,923	$	9,345	Construction
Atlantic Prefab, Inc.; Exterior Designs, LLC; and Patriot Building Systems, LLC	Based in Wilton, New Hampshire, Atlantic Prefab produces prefabricated steel wall panels and light gauge metal trusses. The company’s steel component and prefinished wall panel lines are new, value-added product additions for UFP Construction that help shorten project timelines. Exterior Designs is a leading installer of siding and exterior cladding such as fiber cement, ACM (aluminum composite material) panels, phenolic panels, and EIFS (exterior insulation and finish systems). The company is based in Londonderry, New Hampshire, and serves commercial and multi-family clients throughout the Northeast. Also based in Londonderry, Patriot Building Systems provides commercial and multi-family framing services in the Northeast and will focus on markets not currently served by companies of UFP Industries. The companies had combined annual sales of approximately $28 million.
	October 1, 2020	$5,936 cash paid for 100% stock purchase	$	5,222	$	714	Retail
Fire Retardant Chemical Technologies, LLC (FRCT)	Founded in 2014 and based in Matthews, North Carolina, FRCT’s business includes a research and development laboratory specializing in developing and testing a wide range of high-performance chemicals, including fire retardants and water repellants. The company had annual sales of approximately $6.4 million.

					Net
Company	Acquisition		Intangible		Tangible		Operating
Name	Date	Purchase Price	Assets		Assets		Segment
	September 30, 2020	$3,475 cash paid for 50% stock purchase and estimated contingent consideration	$	7,267	$	(1,369)	Other
Enwrap Logistic & Packaging S.r.l. (Enwrap)	Enwrap is a newly formed company dedicated to the logistics and packaging business of its predecessor, Job Service S.p.A. Headquartered in Milan, Italy, Enwrap provides high-value, mixed material industrial packaging and logistics services through eight locations in Italy. These locations generated annual sales of approximately $14 million.
	July 14, 2020	$18,496 cash paid for 100% asset purchase and estimated contingent consideration	$	12,458	$	6,038	Industrial
T&R Lumber Company (T&R)	A manufacturer and distributor of a range of products used primarily by nurseries, including plastic growing containers, pots and trays; wooden stakes; trellises; tree boxes; shipping racks; and other nursery supplies based in Rancho Cucamonga, California. T&R had annual sales of approximately $31 million. The acquisition of T&R will allow us to leverage their expertise using our national manufacturing capacity to grow our agricultural product offerings and customer base across the country.
	March 13, 2020	$22,951 cash paid for 100% asset purchase and estimated contingent consideration	$	20,262	$	2,689	Construction
Quest Design & Fabrication and Quest Architectural Millwork (Quest)	A designer, fabricator, and installer of premium millwork and case goods for a variety of commercial uses. Quest had annual sales of approximately $22 million. The acquisition of Quest expands our architectural millwork capabilities and expertise in our commercial construction business unit, and will allow us to use our national manufacturing capacity to grow and diversify our sales to this end market

The intangible assets for each acquisition were finalized and allocated to their respective identifiable intangible asset and goodwill accounts during 2021, except for our 2021 acquisitions.  In aggregate, acquisitions made during 2021 and 2020, contributed approximately $1.2 billion in net sales and $50.5 million in operating profit during 2021.

At December 25, 2021, the amounts assigned to major intangible classes for the business combinations mentioned above are as follows (in thousands):

	Non-												Intangibles -
	Compete				Customer								Tax
	Agreements		Patents		Relationships			Tradename		Goodwill			Deductible
Advantage	$	—	$	—	$	—		$	—	$	11,481	*	$	11,481
Ficus		—		—		—			—		8,889	*		8,889
Boxpack		—		—		2,694	*		—		1,978	*		4,672
Shelter		—		—		2,019	*		—		2,020	*		4,039
Endurable		—		—		4,617	*		—		2,482	*		7,099
Walnut Hollow		—		—		1,263	*		—		263	*		1,526
Gilmores		—		—		1,938	*		—		1,938	*		3,876
PalletOne		—		—		18,089			17,450		44,378			79,917
Atlantic Prefab		417		—		1,620			150		1,356			3,543
Exterior Designs		667		—		2,592			240		2,241			5,740
Patriot Building Systems		306		—		1,188			110		1,036			2,640
FRCT		1,090		—		1,960			210		1,962			5,222
Enwrap		790		1,293		558			474		3,705			6,820
T&R		600		—		5,000			2,600		4,258			12,458
Quest		—		—		10,318			1,903		8,041			20,262

*(estimate)

The business combinations mentioned above were not significant to our operating results individually or in aggregate, and thus pro forma results for 2021 and 2020 are not presented.

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GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 25, 2021

GOODWILL AND OTHER INTANGIBLE ASSETS

D.GOODWILL AND OTHER INTANGIBLE ASSETS

As described in Note M — Segment Reporting, our segment structure is based upon the markets we serve and goodwill has been allocated to the segments using a relative fair value approach. The changes in the net carrying amount of goodwill by reporting segment for the years ended December 25, 2021 and December 26, 2020, are as follows (in thousands):

	Retail		Industrial		Construction		All Other		Corporate		Total
Balance as of December 28, 2019	$	58,098	$	81,276	$	82,911	$	7,251	$	—	$	229,536
2020 Acquisitions		3,643		6,549		18,902		4,441		—		33,535
2020 Purchase Accounting Adjustments		202		2		—		—		—		204
2020 Impairments		—		—		(11,485)		—		—		(11,485)
Foreign Exchange, Net		—		—		401		2		—		403
Balance as of December 26, 2020	$	61,943	$	87,827	$	90,729	$	11,694	$	—	$	252,193
2021 Acquisitions		13,115		43,006		4,502		13,880		—		74,503
2021 Purchase Accounting Adjustments		(1,682)		(2,292)		(6,228)		(478)		—		(10,680)
Foreign Exchange, Net		—		—		(3)		(975)		—		(978)
Balance as of December 25, 2021	$	73,376	$	128,541	$	89,000	$	24,121	$	—	$	315,038

As of the date of the most recent goodwill impairment test, which utilized data and assumptions as of September 25, 2021, all reporting units had fair values that were substantially in excess of their carrying values. In the prior year, we experienced significantly lower than expected operating results within our commercial reporting unit, which is within the Construction segment.  It was determined that the carrying value of the reporting unit exceeded its fair value and we recorded a non-cash goodwill impairment charge of $11.5 million as of December 26, 2020, which represented the entire amount of the goodwill recorded within the reporting unit, as a result.

Indefinite-lived intangible assets totaled $7.4 million as of December 25, 2021 and December 26, 2020 related to the commercial unit within the construction segment, the international unit within the all other segment, and the Deckorators unit within the retail segment.

The following amounts were included in other amortizable intangible assets, net as of December 25, 2021 and December 26, 2020 (in thousands):

	2021						2020
			Accumulated						Accumulated
	Assets		Amortization		Net Value		Assets		Amortization		Net Value
Non-compete agreements	$	8,490	$	(4,160)	$	4,330	$	4,847	$	(2,728)	$	2,119
Customer relationships and other		101,158		(25,012)		76,146		80,343		(17,021)		63,322
Licensing agreements		4,589		(4,589)		—		4,589		(4,589)		—
Patents		3,221		(1,137)		2,084		965		(509)		456
Tradename		30,392		(4,599)		25,793		8,019		(2,123)		5,896
Software		959		(295)		664		505		(46)		459
Total	$	148,809	$	(39,792)	$	109,017	$	99,268	$	(27,016)	$	72,252

Amortization is computed principally by the straight-line method over the estimated useful lives of the intangible assets as follows:

		Weighted Average
Intangible Asset Type	Estimated Useful Life	Amortization Period
Non-compete agreements	3 to 15 years	7.8 years
Customer relationship	5 to 15 years	9.7 years
Licensing agreements	10 years	10 years
Patents	10 years	10 years
Tradename (amortizable)	5 to 15 years	11 years
Software	3 to 5 years	3.5 years

Amortization expense of intangibles totaled $13.9 million, $8.7 million and $6.3 million in 2021, 2020 and 2019, respectively. The estimated amortization expense for intangibles for each of the five succeeding fiscal years is as follows (in thousands):

2022	$	13,734
2023		12,878
2024		12,409
2025		11,901
2026		10,944
Thereafter		47,151
Total	$	109,017

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DEBT

12 Months Ended

Dec. 25, 2021

DEBT

E.DEBT

On November 1, 2018, we entered into a five-year, $375 million unsecured revolving credit facility with a syndicate of U.S. banks led by JPMorgan Chase Bank, N.A., as administrative agent and Wells Fargo Bank, N.A., as syndication agent. The facilities include up to $40 million which may be advanced in the form of letters of credit, and up to $100 million (U.S. dollar equivalent) which may be advanced in Canadian dollars, Australian dollars, pounds Sterling, Euros and such other foreign currencies as may subsequently be agreed upon among the parties. Cash borrowings are charged interest based upon an index selected by the Company, plus a margin that is determined based upon the index selected and upon the financial performance of the Company and certain of its subsidiaries. We are charged a facility fee on the entire amount of the lending commitment, at a per annum rate ranging from 12.5 to 30.0 basis points, also determined based upon our performance. The facility fee is payable quarterly in arrears. On February 28, 2021, our credit agreement was amended to increase the availability from $375 million to $550 million by exercising the accordion  feature in the original agreement.

On August 10, 2020, we entered into an unsecured Note Purchase Agreement under which we issued our 3.04% Series 2020 E Senior Notes, due August 10, 2032, in the aggregate principal amount of $50 million, our 3.08% Series 2020 F Senior Notes, due August 10, 2033, in the aggregate principal amount of $50 million, and our 3.15% Series 2020 G Senior Notes, due August 10, 2035, in the aggregate principal amount of $50 million. Proceeds from the sale of the Series E, F and G Senior Notes were used to fund the acquisition of PalletOne in January 2021.

Outstanding letters of credit extended on our behalf on December 25, 2021 and December 26, 2020 aggregated $54.2 million and $41.0 million; respectively, which includes approximately $7.1 million related to industrial development revenue bonds.  We had an outstanding balance of $7.8 million and $4.7 million, which includes foreign subsidiary borrowings, on the revolver at December 25, 2021, and December 26, 2020, respectively. After considering letters of credit, we had $535.1 million and $363.2 million in remaining availability on the revolver on December 25, 2021, and December 26, 2020, respectively.  Letters of credit have one-year terms, include an automatic renewal clause, and are charged an annual interest rate of 112.5 basis points, based upon our financial performance.

Long-term debt obligations are summarized as follows on December 25, 2021 and December 26, 2020 (amounts in thousands):

	2021		2020
Series 2020 Senior Notes E, due on August 10, 2032, interest payable semi-annually at 3.04%	$	50,000	$	50,000
Series 2020 Senior Notes F, due on August 10, 2033, interest payable semi-annually at 3.08%		50,000		50,000
Series 2020 Senior Notes G, due on August 10, 2035, interest payable semi-annually at 3.15%		50,000		50,000
Series 2018 Senior Notes C, due on June 14, 2028, interest payable semi-annually at 4.20%		40,000		40,000
Series 2018 Senior Notes D, due on June 14, 2030, interest payable semi-annually at 4.27%		35,000		35,000
Series 2012 Senior Notes Tranche A, due on December 17, 2022, interest payable semi-annually at 3.89%		35,000		35,000
Series 2012 Senior Notes Tranche B, due on December 17, 2024, interest payable semi-annually at 3.98%		40,000		40,000
Foreign subsidiary borrowings under revolving credit facility, due on November 1, 2023, interest payable monthly at a floating rate (1.06% on December 25, 2021 and 1.125% on December 26, 2020)		7,818		4,715
Series 1999 Industrial Development Revenue Bonds, due on August 1, 2029, interest payable monthly at a floating rate (0.14% on December 25, 2021 and 0.20% on December 26, 2020)		3,300		3,300
Series 2002 Industrial Development Revenue Bonds, due on December 1, 2022, interest payable monthly at a floating rate (0.18% on December 25, 2021 and 0.22% on December 26, 2020)		3,700		3,700
Finance leases and foreign affiliate debt		5,544		138
		320,362		311,853
Less current portion		(42,683)		(100)
Less debt issuance costs		(112)		(146)
Long-term portion	$	277,567	$	311,607

Financial covenants on the unsecured revolving credit facility and unsecured notes include minimum interest coverage tests and a maximum leverage ratio. The agreements also restrict the amount of additional indebtedness we may incur and the amount of assets which may be sold among other industry standard covenants. We were within all of our lending requirements on December 25, 2021 and December 26, 2020.

On December 25, 2021, the principal maturities of long-term debt and finance lease obligations are as follows (in thousands):

2022	$	42,683
2023		8,863
2024		40,214
2025		—
2026		302
Thereafter		228,300
Total	$	320,362

On December 25, 2021, the estimated fair value of our long-term debt, including the current portion, was $334.6 million, which was $14.3 million more than the carrying value. The estimated fair value is based on rates anticipated to be available to us for debt with similar terms and maturities. We consider the valuations of our long-term debt, including the current portion, to be Level 2 liabilities which rely on quoted prices in markets that are not active or observable inputs over the full term of the liability.

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LEASES

12 Months Ended

Dec. 25, 2021

LEASES

F.LEASES

We determine if an arrangement is a lease at inception. We lease certain real estate under non-cancelable operating lease agreements with typical original terms ranging from one to ten years. We are required to pay real estate taxes and other occupancy costs under certain leases, which are variable in nature and not included in the right of use asset or lease liability. Certain leases carry renewal options of five to fifteen years. We believe that future leases will likely have similar terms.  We also lease motor vehicles, equipment, and an aircraft under operating lease agreements for periods of one to ten years.  We do not typically enter into leases with residual value guarantees. There were no restrictions or covenants imposed by any lease agreements.

We believe finance leases have no significant impact to our consolidated balance sheet and statement of earnings as of December 25, 2021.

As of December 25, 2021, we have no leases that have not yet commenced that would significantly impact the rights, obligations, and our financial position.

There were no lease transactions between related parties as of December 25, 2021.

The rates implicit in our leases are primarily not readily available. To determine the discount rate used to present value the lease payments, we utilize the 7-year treasury note rate plus a blend of rate spreads associated with our revolver and 10-12-year senior notes along with estimated spreads based on current market conditions.  We feel the determined rate is a reasonable representation of our lease population.

Lease costs under non-cancelable operating leases on December 25, 2021 and December 26, 2020 are as follows (in thousands):

		2021		2020
Operating lease cost	$	30,054	$	21,594
Short-term lease cost		5,264		2,863
Variable lease cost		4,761		3,985
Sublease income		(3,109)		(1,013)
Total lease cost	$	36,970	$	27,429

The amounts paid for operating leases, included in the measurement of lease liabilities, were $27.4 million in the year ended December 25, 2021 and $20.0 million in the year ended December 26, 2020. In addition, right-of-use assets obtained in exchange for new operating lease liabilities were approximately $46.7 million and $12.8 million, respectively, for the years ended December 25, 2021 and December 29, 2019.

Future minimum payments under non-cancelable operating leases on December 25, 2021 are as follows (in thousands):

	Operating
	Leases
2022	$	26,378
2023		21,040
2024		15,842
2025		13,164
2026		11,140
Thereafter		27,123
Total minimum lease payments	$	114,687
Less present value discount		(14,900)
Total lease liability	$	99,787

Rent expense was approximately $40.1 million, $28.4 million, and $29.9 million in 2021, 2020, and 2019, respectively.

As of December 25, 2021 and December 26, 2020, the weighted average lease term for operating leases was 7.33 years and 6.84 years, respectively.  Similarly, the weighted average discount rate for operating leases was 2.87% and 3.12%, respectively.

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DEFERRED COMPENSATION

12 Months Ended

Dec. 25, 2021

DEFERRED COMPENSATION

G.DEFERRED COMPENSATION

We have a program whereby certain executives irrevocably elected to defer receipt of certain compensation in 1985 through 1988. Deferred compensation payments to these executives commenced upon their retirement. The remaining deferred compensation liability on December 25, 2021 and December 26, 2020 was $0.2 million. We purchased life insurance on these executives, payable to us in amounts which, if assumptions made as to mortality experience, policy dividends, and other factors are realized, will accumulate cash values adequate to reimburse us for all payments for insurance and deferred compensation obligations. The investment in life insurance contracts as of December 25, 2021 and December 26, 2020, was $12.7 million and $13.3 million, respectively, and is recorded in “Other Assets” on the Consolidated Balance Sheet.

We also maintain a non-qualified deferred compensation plan (the "Plan") for the benefit of senior management employees who may elect to defer a portion of their annual bonus payments and salaries. The Plan provides investment options similar to our 401(k) plan, including our stock. The investment in our stock is funded by the issuance of shares to a Rabbi trust, and may only be distributed in kind. Assets held by the Plan totaled approximately $0.7 million and $0.6 million on December 25, 2021 and December 26, 2020, respectively, and are included in "Other Assets."  Related liabilities totaled $42.1 million and $36.6 million on December 25, 2021 and December 26, 2020, respectively, and are included in "Other Liabilities" and "Shareholders’ Equity."  Assets associated with the Plan are recorded at fair market value. The related liabilities are also recorded at fair market value, with the exception of obligations associated with investments in our stock which are recorded at the market value on the date of deferral.

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COMMON STOCK

12 Months Ended

Dec. 25, 2021

COMMON STOCK

H.COMMON STOCK

We maintain and administer our shareholder approved Employee Stock Purchase Plan ("Stock Purchase Plan"). The Stock Purchase Plan allows eligible employees to purchase shares of our stock at a share price equal to 85% of fair market value on the purchase date. We have expensed the fair value of the compensation associated with these awards, which approximates the discount. The amount of expense is nominal.

We maintain and administer our shareholder approved Directors’ Retainer Stock Plan ("Stock Retainer Plan").  The Stock Retainer Plan allows eligible members of the Board of Directors to defer the cash portion of their retainer and committee fees and receive shares of our stock at the time of or following their retirement, disability or death. The number of shares to be received is equal to the amount of the cash portion of their retainer and committee fees deferred multiplied by 110%, divided by the fair market value of a share of our stock at the time of deferral. The number of units is increased by the amount of dividends paid on our common stock. The units are immediately vested as of the grant date, since they are considered payment for services rendered quarterly. We recognized expense for this plan of $1.7 million in 2021, and $1.8 million in both 2020 and 2019. Effective January 1, 2017, this plan was amended to allow directors to defer payment of the annual retainer paid in the form of our common stock. The number of shares to be received for their portion of the retainer that is deferred is equal to the amount of shares plus the number of shares attributable to cash dividends payable on those deferred shares.

Finally, we maintain and administer our shareholder approved Long Term Stock Incentive Plan (the "LTSIP”). The LTSIP provides for the grant of stock options, stock appreciation rights, restricted stock, performance shares and other stock-based awards.

Executive Stock Match awards are granted in the year following the requisite service period, which begins at the beginning of each fiscal year, and fully vest on the fifth anniversary of the grant date.

There is no unrecognized compensation expense remaining for stock options in 2021, 2020, and 2019.

Below is a summary of common stock issuances for 2021 and 2020:

	December 25, 2021
Share Issuance Activity	Common Stock		Average Share Price
Shares issued under the employee stock purchase plan	33	$	75.18
Shares issued under the employee stock gift program	2		78.37
Shares issued under the director retainer stock program	5		72.66
Shares issued under the bonus plan	487		59.56
Shares issued under the executive stock match plan	77		60.24
Forfeitures	(24)
Total shares issued under stock grant programs	547	$	59.84
Shares issued under the deferred compensation plans	117	$	64.14

	December 26, 2020
Share Issuance Activity	Common Stock		Average Share Price
Shares issued under the employee stock purchase plan	35	$	46.71
Shares issued under the employee stock gift program	3		48.10
Shares issued under the director retainer stock program	46		25.31
Shares issued under the bonus plan	271		47.52
Shares issued under the executive stock grants plan	79		47.60
Forfeitures	(9)
Total shares issued under stock grant programs	390	$	44.96
Shares issued under the deferred compensation plans	128	$	53.79

A summary of the nonvested restricted stock awards granted under the LTSIP is as follows:

						Weighted-
				Unrecognized		Average
		Weighted-		Compensation		Period to
	Restricted	Average Grant		Expense		Recognize
	Awards	Date Fair Value		(in millions)		Expense
Nonvested at December 29, 2018	1,160,079	$	23.32	$	7.6	1.12 years
Granted	318,496		32.60
Vested	(224,894)		23.42
Forfeited	(50,786)		24.18
Nonvested at December 28, 2019	1,202,895	$	29.68	$	7.9	0.86 years
Granted	348,016		47.60
Vested	(177,790)		22.69
Forfeited	(9,327)		33.46
Nonvested at December 26, 2020	1,363,794	$	35.14	$	6.3	0.62 years
Granted	560,516		60.24
Vested	(274,271)		26.50
Forfeited	(23,007)		39.68
Nonvested at December 25, 2021	1,627,032	$	45.23	$	6.6	0.43 years

Under the Stock Purchase Plan and LTSIP, we recognized share-based compensation expense of $11.2 million, $4.0 million, and $4.0 million and the related total income tax benefits of $2.7 million, $1.0 million, and $0.8 million in 2021, 2020 and 2019, respectively.

For the year-ended December 25, 2021, we determined that $60 million of share-based bonus awards, representing 751,978 shares, will be awarded to qualified employees as it relates to the company’s 2021 performance and granted in 2022. Awards granted generally vest after a period of three, five or eight years from the grant date. In addition to the share-based bonus awards, certain employees are eligible to receive performance units equivalent to $2.3 million, or 28,866 shares of stock, if certain performance metrics are achieved after three years. As of December 25, 2021 and December 26, 2020, we recognized approximately $11.5 million and $4 million, respectively, of compensation expense related to share-based bonus awards.‬

In 2021, 2020 and 2019, cash received from share issuances under our plans was $2.1 million, $1.4 million and $1.1 million, respectively.

Effective February 15, 2022, our Board authorized an additional 1.5 million shares to be repurchased under our existing share repurchase program. We repurchased no shares in 2021 and 756,397 shares in 2020 under this program. Following the most recent authorization, the cumulative total authorized shares available for repurchase is approximately 2.6 million shares through the period ending February 3, 2023.

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RETIREMENT PLANS

12 Months Ended

Dec. 25, 2021

RETIREMENT PLANS

I.RETIREMENT PLANS

We have a profit sharing and 401(k) plan for the benefit of substantially all of our employees, excluding the employees of certain wholly-owned subsidiaries. Amounts contributed to the plan are made at the discretion of the Board of Directors. We matched 25%of employee contributions in 2021, 2020, and 2019, on a discretionary basis, totaling $9.2 million, $7.2 million, and $6.5 million respectively. Included within the total employee matched contribution was an additional matched contribution for hourly employees of $3.7 million, $2.9 million and $2.6 million for 2021, 2020 and 2019, respectively, based on meeting certain performance goals during those years. The basis for matching contributions may not exceed the lesser of 6% of the employee’s annual compensation or the IRS limitation.

We maintain a retirement plan for certain officers of the Company (who have at least 20 years of service with the Company and at least 10 years of service as an officer) whereby we will pay, upon retirement, certain benefits including health care benefits, for a specified period of time if certain eligibility requirements are met. Approximately $13.1 million and $11.8 million are accrued in “Other Liabilities” for this plan on December 25, 2021 and December 26, 2020, respectively.

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INCOME TAXES

12 Months Ended

Dec. 25, 2021

INCOME TAXES

J.INCOME TAXES

Income tax provisions for the years ended December 25, 2021, December 26, 2020, and December 28, 2019 are summarized as follows (in thousands):

	2021		2020		2019
Currently Payable:
Federal	$	115,077	$	59,055	$	35,267
State and local		30,441		16,709		10,071
Foreign		21,095		8,601		5,834
		166,613		84,365		51,172
Net Deferred:
Federal		6,242		2,292		6,895
State and local		118		(1,518)		805
Foreign		999		1,962		(602)
		7,359		2,736		7,098
Total income tax expense	$	173,972	$	87,101	$	58,270

The components of earnings before income taxes consist of the following:

	2021		2020		2019
U.S.	$	645,316	$	308,167	$	220,532
Foreign		81,020		32,816		20,142
Total	$	726,336	$	340,983	$	240,674

The effective income tax rates are different from the statutory federal income tax rates for the following reasons:

	2021		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State and local taxes (net of  federal benefits)	3.3		3.4		3.9
Effect of noncontrolling owned interest in earnings of partnerships	n/a		n/a		(0.1)
Tax credits, including foreign tax credit	(0.6)		(0.9)		(1.3)
Change in uncertain tax positions reserve	(0.1)		(0.1)		(0.1)
Other permanent differences	(0.4)		0.6		0.5
Other, net	0.7		1.5		0.3
Effective income tax rate	23.9	%	25.5	%	24.2	%

Temporary differences which give rise to deferred income tax assets and (liabilities) on December 25, 2021 and December 26, 2020 are as follows (in thousands):

	2021		2020
Employee benefits	$	27,543	$	23,236
Lease liability		24,627		19,376
Net operating loss carryforwards		5,502		6,463
Foreign subsidiary capital loss carryforward		527		527
Other tax credits		450		391
Inventory		2,007		1,633
Reserves on receivables		1,446		1,630
Accrued expenses		5,735		3,071
Other, net		5,233		8,483
Gross deferred income tax assets		73,070		64,810
Valuation allowance		(3,952)		(4,044)
Deferred income tax assets		69,118		60,766
Depreciation		(64,387)		(41,403)
Intangibles		(38,367)		(22,840)
Right of use assets		(23,866)		(19,376)
Deferred income tax liabilities		(126,620)		(83,619)
Net deferred income tax liability	$	(57,502)	$	(22,853)

As of December 25, 2021, we had federal, state and foreign net operating loss carryforwards of $5.5 million and state tax credit carryforwards of $0.5 million, which will expire at various dates.

The NOL and credit carryforwards expire as follows:

	Net Operating Losses						Tax Credits
	U.S.		State		Foreign		U.S.		State
2022 - 2026	$	—	$	—	$	536	$	—	$	—
2027 - 2031		—		436		1,424		—		—
2032 - 2036		—		670		106		—		450
2037 - 2041		790		808		—		—		—
Thereafter		—		438		294		—		—
Total	$	790	$	2,352	$	2,360	$	—	$	450

As of December 25, 2021, we believe that it is more likely than not that the benefit from certain state and foreign NOL carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $3.4 million against the various NOLs. Furthermore, there is a valuation allowance of $0.5 million against a capital loss carryforward we have for a wholly-owned subsidiary, UFP Canada, Inc. Based upon the business activity and the nature of the assets of this subsidiary, our ability to realize a future benefit from this carryforward is doubtful. The capital loss has an unlimited carryforward and therefore will not expire unless there is a change in control of the subsidiary.

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ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

12 Months Ended

Dec. 25, 2021

ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

K.ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

ASC 740, Income Taxes (“ASC 740”) clarifies the accounting for income taxes by prescribing the minimum recognition threshold a tax position is required to meet before being recognized in the financial statements. ASC 740 also provides guidance on derecognition, measurement, classification, interest and penalties, and disclosure requirements.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2021		2020		2019
Gross unrecognized tax benefits beginning of year	$	3,892	$	4,166	$	4,378
Increase in tax positions for prior years		437		(82)		(129)
Increase in tax positions for current year		839		730		768
Lapse in statute of limitations		(1,565)		(922)		(851)
Gross unrecognized tax benefits end of year	$	3,603	$	3,892	$	4,166

Our effective tax rate would have been affected by the unrecognized tax benefits had this amount been recognized as a reduction to income tax expense.

We recognized interest and penalties for unrecognized tax benefits in our provision for income taxes. The liability for unrecognized tax benefits included accrued interest and penalties of $0.5 million for each of the years December 25, 2021, December 26, 2020, and December 28, 2019.

We file income tax returns in the United States and in various state, local and foreign jurisdictions. The federal and a majority of state and foreign jurisdictions are no longer subject to income tax examinations for years before 2017. A number of routine state and local examinations are currently ongoing. Due to the potential for resolution of state examinations, the expiration of various statutes of limitation, and new positions that may be taken, it is reasonably possible that the amount of unrecognized tax benefits in the next twelve months $1.1 million.

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COMMITMENTS, CONTINGENCIES, AND GUARANTEES

12 Months Ended

Dec. 25, 2021

COMMITMENTS, CONTINGENCIES, AND GUARANTEES

L.COMMITMENTS, CONTINGENCIES, AND GUARANTEES

We are self-insured for environmental impairment liability, including certain liabilities which are insured through a wholly owned subsidiary, Ardellis Insurance Ltd., a licensed captive insurance company.

In addition, on December 25, 2021, we were parties either as plaintiff or defendant to a number of lawsuits and claims arising through the normal course of our business. In the opinion of management, our consolidated financial statements will not be materially affected by the outcome of these contingencies and claims.

On December 25, 2021, we had outstanding purchase commitments on commenced capital projects of approximately $52.7 million.

We provide a variety of warranties for products we manufacture. Historically, warranty claims have not been material. We distribute products manufactured by other companies, some of which are no longer in business. While we do not warrant these products, we have received claims as a distributor of these products when the manufacturer no longer exists or has the ability to pay. Historically, these costs have not had a material effect on our consolidated financial statements.

As part of our operations, we supply building materials and labor to site-built construction projects or we jointly bid on contracts with framing companies for such projects. In some instances we are required to post payment and performance bonds to insure the project owner that the products and installation services are completed in accordance with our contractual obligations. We have agreed to indemnify the surety for claims made against the bonds. As of December 25, 2021, we had approximately $31.5 million in outstanding payment and performance bonds for open projects. We had approximately $10.7 million in payment and performance bonds outstanding for completed projects which are still under warranty.

On December 25, 2021, we had outstanding letters of credit totaling $54.2 million, primarily related to certain insurance contracts and industrial development revenue bonds described further below.

In lieu of cash deposits, we provide irrevocable letters of credit in favor of our insurers and other lenders to guarantee our performance under certain contracts. We currently have irrevocable letters of credit outstanding totaling approximately $47.1 million for these types of arrangements. We have reserves recorded on our balance sheet, in accrued liabilities, that reflect our expected future liabilities under these arrangements.

We are required to provide irrevocable letters of credit in favor of the bond trustees for all industrial development revenue bonds that have been issued. These letters of credit guarantee principal and interest payments to the bondholders. We currently have irrevocable letters of credit outstanding totaling approximately $7.1 million related to our outstanding industrial development revenue bonds. These letters of credit have varying terms but may be renewed at the option of the issuing banks.

Certain wholly owned domestic subsidiaries have guaranteed the indebtedness of UFP Industries, Inc. in certain debt agreements, including the Series 2012, 2018 and 2020 Senior Notes and our revolving credit facility. The maximum exposure of these guarantees is limited to the indebtedness outstanding under these debt arrangements and this exposure will expire concurrent with the expiration of the debt agreements.

We did not enter into any new guarantee arrangements during 2021 which would require us to recognize a liability on our balance sheet.

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SEGMENT REPORTING

12 Months Ended

Dec. 25, 2021

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 in deciding how to allocate resources and in assessing performance.

We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of UFP Retail Solutions, UFP Industrial 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, Industrial, and Construction segments. Two customers, The Home Depot and Lowes, accounted for approximately 16% and 10%, respectively, of our total net sales in fiscal 2021. These customers accounted for approximately 24% and 4%, respectively, of our total net sales in fiscal 2020 and 19% and 4%, respectively, in 2019.

The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Europe, India, and Australia operations 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 and administrative functions that serve our operating segments. Operating results of Corporate primarily consist 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, certain property, equipment and other assets pertaining to the centralized activities of Corporate, UFP Real Estate, Inc., UFP Transportation Ltd, and UFP Purchasing.

	2021
							All
	Retail		Industrial		Construction		Other		Corporate		Total
Net sales to outside customers	$	3,418,337	$	2,148,142	$	2,698,434	$	362,473	$	8,748	$	8,636,134
Intersegment net sales		214,400		85,954		82,026		455,874		(838,254)		—
Interest expense		98		12		1		184		13,519		13,814
Amortization expense		2,780		6,093		3,525		1,336		214		13,948
Depreciation expense		16,955		26,219		13,151		2,094		25,765		84,184
Segment earnings before income taxes		124,790		264,958		264,238		80,905		(8,555)		726,336
Segment assets		844,189		741,672		736,157		343,363		579,890		3,245,271
Capital expenditures		40,408		42,652		22,344		5,140		40,622		151,166

	2020
							All
	Retail		Industrial		Construction		Other		Corporate		Total
Net sales to outside customers	$	2,167,122	$	1,072,117	$	1,695,684	$	217,094	$	1,981	$	5,153,998
Intersegment net sales		142,839		45,217		68,294		283,689		(540,039)		—
Interest expense		2		22		—		90		9,197		9,311
Amortization expense		1,482		4,159		2,152		877		46		8,716
Depreciation expense		11,675		15,163		12,123		1,619		23,384		63,964
Segment earnings before income taxes		155,364		83,430		69,092		38,333		(5,236)		340,983
Segment assets		510,464		416,487		510,972		196,856		770,112		2,404,891
Capital expenditures		16,277		21,141		16,902		2,258		32,604		89,182

	2019
							All
	Retail		Industrial		Construction		Other		Corporate		Total
Net sales to outside customers	$	1,498,710	$	1,085,635	$	1,637,156	$	193,785	$	723	$	4,416,009
Intersegment net sales		135,705		45,010		56,116		200,426		(437,257)		—
Interest expense		—		108		16		97		8,479		8,700
Amortization expense		1,380		3,034		1,164		747		—		6,325
Depreciation expense		11,041		14,340		11,465		1,532		22,116		60,494
Segment earnings before income taxes		61,708		82,913		82,407		22,025		(8,379)		240,674
Segment assets		402,221		377,329		522,638		136,990		450,299		1,889,477
Capital expenditures		15,502		20,134		16,097		2,150		31,050		84,933

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

	2021				2020				2019
			Long-Lived				Long-Lived				Long-Lived
			Tangible				Tangible				Tangible
	Net Sales		Assets		Net Sales		Assets		Net Sales		Assets
United States	$	8,395,737	$	679,757	$	5,022,014	$	478,325	$	4,308,618	$	469,605
Foreign		240,397		54,873		131,984		36,380		107,391		36,878
Total	$	8,636,134	$	734,630	$	5,153,998	$	514,705	$	4,416,009	$	506,483

The following table presents, for the periods indicated, our disaggregated net sales (in thousands) by business unit for each segment and our percentage of value-added and commodity-based sales to total net sales by segment.

	Year Ended
	December 25,		December 26,		December 28,
	2021		2020		2019
Retail
Deckorators	$	248,765	$	219,930	$	185,221
Prowood		1,349,901		1,215,201		786,720
Outdoor Essentials		392,826		299,684		227,767
Sunbelt		773,909		—		—
UFP Edge		148,927		114,987		95,608
Handprint		101,090		88,351		52,553
Retail Building Materials		395,894		225,253		149,153
Other		7,025		3,716		1,688
Total Retail	$	3,418,337	$	2,167,122	$	1,498,710
Industrial
North Industrial	$	615,092	$	385,132	$	376,515
Southeast Industrial		395,069		229,316		255,419
Southwest Industrial		400,515		238,643		241,774
West Industrial		363,300		206,022		197,686
PalletOne		355,347		—		—
Protective Packaging		18,819		13,004		14,241
Total Industrial	$	2,148,142	$	1,072,117	$	1,085,635
Construction
Factory Built	$	1,098,905	$	597,017	$	479,927
Site Built		1,190,393		725,899		708,767
Commercial		259,360		221,988		290,785
Concrete Forming		149,776		150,780		157,677
Total Construction	$	2,698,434	$	1,695,684	$	1,637,156
All Other	$	362,473	$	217,094	$	193,785
Corporate	$	8,748	$	1,981	$	723
Total Net Sales	$	8,636,134	$	5,153,998	$	4,416,009
Value-Added
Retail		43.2%		53.8%		57.8%
Industrial		67.7%		64.7%		66.2%
Construction		73.0%		76.3%		81.4%
All Other and Corporate		74.9%		75.6%		75.8%
Total		59.7%		64.3%		69.3%
Commodity-Based
Retail		56.8%		46.2%		42.2%
Industrial		32.3%		35.3%		33.8%
Construction		27.0%		23.7%		18.6%
All Other and Corporate		25.1%		24.4%		24.2%
Total		40.3%		35.7%		30.7%

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QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 25, 2021

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

N.QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

The following table sets forth selected financial information for all of the quarters, consisting of 13 weeks during the years ended December 25, 2021 and December 26, 2020, respectively, (in thousands, except per share data):

	First				Second				Third				Fourth
	2021		2020		2021		2020		2021		2020		2021		2020
Net sales	$	1,825,004	$	1,032,062	$	2,700,541	$	1,242,001	$	2,093,784	$	1,486,227	$	2,016,805	$	1,393,708
Gross profit		286,554		167,236		421,294		204,931		327,555		241,074		371,564		187,055
Net earnings		104,251		40,570		175,360		69,694		125,747		78,861		147,006		64,757
Net earnings attributable to controlling interest		103,311		40,159		173,382		66,463		121,041		77,204		137,906		62,952
Basic earnings per share		1.67		0.65		2.79		1.08		1.94		1.25		2.21		1.02
Diluted earnings per share		1.67		0.65		2.78		1.08		1.94		1.25		2.21		1.02

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SUBSEQUENT EVENTS

12 Months Ended

Dec. 25, 2021

SUBSEQUENT EVENTS

O.SUBSEQUENT EVENTS

On December 27, 2021, we closed on an agreement to purchase 100 percent of the equity of Ultra Aluminum Manufacturing, Inc. (Ultra) located in Howell, Michigan for approximately $26.8 million. Ultra designs and produces an extensive selection of ornamental aluminum fence and railing products for contractors, landscapers, fence dealers and wholesalers. At this time the net tangible assets and intangible assets acquired cannot be disclosed as these are pending final valuations. Initial estimates of Ultra‘s identifiable intangibles, goodwill, and deferred taxes have been made, however, the amounts will be finalized in 2022.

Effective February 15, 2022, our Board authorized an additional 1.5 million shares to be repurchased under our existing share repurchase program. Following the most recent authorization, the cumulative total authorized shares available for repurchase is approximately 2.6 million shares through the period ending February 3, 2023.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 25, 2021

PRINCIPLES OF CONSOLIDATION

PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships. In addition, we consolidate any entity which we own 50% or more and exercise control. Intercompany transactions and balances have been eliminated.

NONCONTROLLING INTEREST IN SUBSIDIARIES

NONCONTROLLING INTEREST IN SUBSIDIARIES

Noncontrolling interest in results of operations of consolidated subsidiaries represents the noncontrolling shareholders’ share of the income or loss of various consolidated subsidiaries. The noncontrolling interest reflects the original investment by these noncontrolling shareholders combined with their proportional share of the earnings or losses of these subsidiaries, net of distributions paid.

FISCAL YEAR

FISCAL YEAR

Our fiscal year is a 52 or 53 week period, ending on the last Saturday of December. Unless otherwise stated, references to 2021, 2020, and 2019 relate to the fiscal years ended December 25, 2021, December 26, 2020, and December 28, 2019, respectively. Fiscal years 2021, 2020, and 2019 were comprised of 52 weeks.

FAIR VALUE DISCLOSURES OF FINANCIAL INSTRUMENTS

FAIR VALUE DISCLOSURES OF FINANCIAL INSTRUMENTS

We follow ASC Topic 820, Fair Value Measurements and Disclosures, which provides a consistent definition of fair value, focuses on exit price, prioritizes the use of market-based inputs over entity-specific inputs for measuring fair value and establishes a three-tier hierarchy for fair value measurements. This topic requires fair value measurements to be classified and disclosed in one of the following three categories:

● Level 1 — Financial instruments with unadjusted, quoted prices listed on active market exchanges.

● Level 2 — Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. Financial instrument values are determined using prices for recently traded financial instruments with similar underlying terms and direct or indirect observational inputs, such as interest rates and yield curves at commonly quoted intervals.

● Level 3 — Financial instruments not actively traded on a market exchange and there is little, if any, market activity. Values are determined using significant unobservable inputs or valuation techniques.

Our investment portfolio includes restricted investments within our wholly-owned subsidiary, Ardellis Insurance Ltd. There are $19.3 million of restricted investments recorded as of December 25, 2021.

CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash and highly liquid investments purchased with an original maturity of three months or less.

INVESTMENTS

INVESTMENTS

Investments are deemed to be "available for sale" and are, accordingly, carried at fair value being the quoted market value.

ACCOUNTS RECEIVABLE AND ALLOWANCES

ACCOUNTS RECEIVABLE AND ALLOWANCES

We perform periodic credit evaluations of our customers and generally do not require collateral. Accounts receivable are due under a range of terms we offer to our customers. Discounts are offered, in most instances, as an incentive for early payment.

We base our allowances related to receivables on historical credit and collections experience, reasonable and supportable forecasts, and the specific identification of other potential problems, including the general economic climate. Actual collections can differ, requiring adjustments to the allowances. Individual accounts receivable balances are evaluated on a monthly basis, and those balances considered uncollectible are charged to the allowance.

The following table presents the activity in our accounts receivable allowances (in thousands):

			Additions
			Charged to
	Beginning		Costs and				Ending
	Balance		Expenses		Deductions*		Balance
Year Ended December 25, 2021:
Allowance for possible losses on accounts receivable	$	4,629	$	66,883	$	(66,427)	$	5,085
Year Ended December 26, 2020:
Allowance for possible losses on accounts receivable	$	4,440	$	48,954	$	(48,765)	$	4,629
Year Ended December 28, 2019:
Allowance for possible losses on accounts receivable	$	2,601	$	39,481	$	(37,642)	$	4,440

* Includes accounts charged off, discounts given to customers and actual customer returns and allowances.

We record estimated sales returns, discounts, and other applicable adjustments as a reduction of net sales in the same period revenue is recognized.

Accounts receivable retainage amounts related to long term construction contracts totaled $7.8 million and $8.7 million as of December 25, 2021 and December 26, 2020, respectively. All amounts are expected to be collected within 18 months. Concentration of accounts receivable related to our two largest customers totaled $87.6 million and $97.9 million as of December 25, 2021 and December 26, 2020, respectively.

In June 2016, the FASB issued ASU 2016-13, Financial Instrument-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which changes the current incurred loss model to a forward looking expected credit loss model for most financial assets, such as trade and other receivables, loans and other instruments. The ASU is effective for fiscal years beginning after December 15, 2019. Entities are required to apply the provisions of the standard through a cumulative-effect adjustment to retained earnings as of effective date. We have adopted the new standard as of the beginning of fiscal year 2020 and have concluded the standard does not have a material impact on our consolidated financial statements and disclosures, accounting processes, and internal controls.

INVENTORIES

INVENTORIES

Inventories are stated at the lower of cost or market. The cost of inventories includes raw materials, direct labor, and manufacturing overhead. Cost is determined on a weighted average basis. Raw materials consist primarily of unfinished wood products and other materials expected to be manufactured or treated prior to sale, while finished goods represent various manufactured and treated wood products ready for sale. We have inventory on consignment at customer locations valued at $37.8 million as of December 25, 2021 and $20.8 million as of December 26, 2020.

PROPERTY, PLANT, AND EQUIPMENT

PROPERTY, PLANT, AND EQUIPMENT

Property, plant, and equipment are stated at cost. Expenditures for renewals and betterments are capitalized, and maintenance and repairs are expensed as incurred. Amortization of assets held under finance leases is included in depreciation and amortized over the shorter of the estimated useful life of the asset or the lease term. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets as follows:

Land improvements	5 to 15 years
Buildings and improvements	10 to 32 years
Machinery, equipment and office furniture	2 to 20 years

Software costs are included in machinery and equipment on the balance sheet with gross amounts and accumulated amortization totaling $6.0 million and $5.3 million as of December 25, 2021, and $5.5 million and $4.9 million as of December 26, 2020, respectively.

LONG-LIVED ASSETS

LONG-LIVED ASSETS

In accordance with ASC 360, Property, Plant, and Equipment (“ASC 360”), when an indicator of potential impairment exists, we evaluate the recoverability of our long-lived assets by determining whether unamortized balances could be recovered through undiscounted future operating cash flows over the remaining lives of the assets. If the sum of the expected future cash flows was less than the carrying value of the assets, an impairment loss would be recognized for the excess of the carrying value over the fair value.

GOODWILL

GOODWILL

Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are subject to impairment tests at least annually in accordance with ASC 350, Intangibles-Goodwill and Other. We review the carrying amounts of goodwill and other non-amortizable intangibles by reporting unit to determine if such assets may be impaired. As of the date of the most recent goodwill impairment test, which utilized data and assumptions as of September 25, 2021, all other reporting units had a fair value that was substantially in excess of the carrying value. In the fourth quarter of 2020, we recorded a non-cash goodwill impairment charge of $11.5 million related to the commercial reporting unit within our construction segment. We believe we have sufficient available information, both current and historical, to support our assumptions, judgments and estimates used in the goodwill impairment test.

Our annual testing date for evaluating goodwill and indefinite-lived intangible asset impairment is the first day of our fourth fiscal quarter for all reporting units. Additionally, we review various triggering events throughout the year to determine whether a mid-year impairment analysis is required.

FOREIGN CURRENCY

FOREIGN CURRENCY

Our foreign operations use the local currency as their functional currency. Accordingly, assets and liabilities are translated at exchange rates as of the balance sheet date and revenues and expenses are translated using weighted average rates, with translation adjustments included as a separate component of shareholders’ equity. Gains and losses arising from re-measuring foreign currency transactions are included in earnings.

INSURANCE RESERVES

INSURANCE RESERVES

Our wholly-owned insurance company, Ardellis Insurance Ltd.(“Ardellis”), was incorporated on April 21, 2001 under the laws of Bermuda and is licensed as a Class 3A insurer under the Insurance Act 1978 of Bermuda.  On April 14, 2017 the U.S. Branch of Ardellis Insurance Ltd. was granted its Certificate of Authority to transact property and casualty insurance lines as an admitted carrier in the State of Michigan.

We are primarily self-insured for certain employee health benefits, and have self-funded retentions for general liability, automobile liability, property and workers’ compensation. We are fully self-insured for environmental liabilities. The general liability, automobile liability, property, workers’ compensation, and certain environmental liabilities are managed through Ardellis; the related assets and liabilities of which are included in the consolidated financial statements as of December 25, 2021 and December 26, 2020. Our policy is to accrue amounts equal to actuarially determined or internally computed liabilities. The actuarial and internal valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical cost trends, and changes in claims experience could cause these estimates to change in the future.

In addition to providing coverage for the Company, Ardellis provides Excess Loss Insurance (primarily medical and prescription drug) to certain third parties. As of December 25, 2021, Ardellis had 43 such contracts in place. Reserves associated with these contracts were $7.1 million at December 25, 2021, and $4.5 million at December 26, 2020, and are accrued based on third party actuarial valuations of the expected future liabilities.

INCOME TAXES

INCOME TAXES

Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred income tax assets to the amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred income tax assets and liabilities.

REVENUE RECOGNITION

REVENUE RECOGNITION

Within the three primary segments (Retail, Industrial, and Construction) that the Company operates, there are a variety of written agreements governing the sale of our products and services. The transaction price is stated at the purchase order level, which includes shipping and/or freight costs and any applicable governmental authority taxes. The majority of our contracts have a single performance obligation concentrated around the delivery of goods to the carrier, Free On Board (FOB) shipping point. Therefore, revenue is recognized when this performance obligation is satisfied. Generally, title and control passes at the time of shipment. In certain circumstances, the customer takes title when the shipment arrives at the destination. However, our shipping process is typically completed the same day.

Certain customer products that we provide require installation by the Company or a third party. Installation revenue is recognized upon completion. If we use a third party for installation, the party will act as an agent to us until completion of the installation. Installation revenue represents an immaterial share of our total net sales.

We utilize rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized.

Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred related to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced related to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent.

Our construction contracts are generally entered into with a fixed price and completion of the projects can range from 6 to 18 months in duration. Therefore, our operating results are impacted by, among many other things, labor rates and commodity costs. During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist.

The following table presents our net sales disaggregated by revenue source (in thousands):

	Year Ended
	December 25,		December 26,		December 28,		2021 vs. 2020	2020 vs. 2019
	2021		2020		2019		% Change	% Change
FOB Shipping Point Revenue	$	8,512,012	$	5,025,895	$	4,272,583	69.4%	17.6%
Construction Contract Revenue		124,122		128,103		143,426	(3.1)%	(10.7)%
Total Net Sales	$	8,636,134	$	5,153,998	$	4,416,009	67.6%	16.7%

The Construction segment comprises the construction contract revenue shown above. Construction contract revenue is primarily made up of site-built and framing customers.

The following table presents the balances of over time accounting accounts on December 25, 2021 and December 26, 2020 which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands):

	December 25,		December 26,
	2021		2020
Cost and Earnings in Excess of Billings	$	5,602	$	4,169
Billings in Excess of Cost and Earnings		10,744		11,530

SHIPPING AND HANDLING OF PRODUCT

Shipping and handling costs that are charged to and reimbursed by the customer are recognized as revenue. Costs incurred related to the shipment and handling of products are classified in cost of goods sold.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

We account for share-based awards in accordance with ASC Topic 718, Compensation – Stock Compensation (“ASC 718”), which requires recognition of share-based compensation costs in financial statements based on fair value. Compensation cost is recognized over the period during which an employee is required to provide services in exchange for the award (the requisite service period). Forfeitures are recognized as they occur.

EARNINGS PER SHARE

EARNINGS PER SHARE

Earnings per share (“EPS”) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and their respective participation rights in undistributed earnings. Participating securities include non-vested shares of restricted stock in which the participants have non-forfeitable rights to dividends during the performance period. EPS, basic and diluted, is calculated by dividing net earnings attributable to controlling interest, net of applicable taxes, by the weighted average number of shares of common stock outstanding for the period. The computation of EPS is as follows (in thousands):

	December 25,		December 26,		December 28,
	2021		2020		2019
Numerator:
Net earnings attributable to controlling interest	$	535,640	$	246,778	$	179,650
Adjustment for earnings allocated to non-vested restricted common stock		(17,342)		(6,903)		(4,496)
Net earnings for calculating EPS	$	518,298	$	239,875	$	175,154
Denominator:
Weighted average shares outstanding		62,209		61,632		61,649
Adjustment for non-vested restricted common stock		(2,014)		(1,724)		(1,543)
Shares for calculating basic EPS		60,195		59,908		60,106
Effect of dilutive restricted common stock		159		20		24
Shares for calculating diluted EPS		60,354		59,928		60,130
Net earnings per share:
Basic	$	8.61	$	4.00	$	2.91
Diluted	$	8.59	$	4.00	$	2.91

USE OF ACCOUNTING ESTIMATES

USE OF ACCOUNTING ESTIMATES

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. We believe our estimates to be reasonable; however, actual results could differ from these estimates.

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.

We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of UFP Retail Solutions, UFP Industrial 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, Industrial, and Construction segments. Two customers, The Home Depot and Lowes, accounted for approximately 16% and 10%, respectively, of our total net sales in fiscal 2021. These customers accounted for approximately 24% and 4%, respectively, of our total net sales in fiscal 2020 and 19% and 4%, respectively, in 2019.

The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Europe, India, and Australia operations 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.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 25, 2021

Schedule of Accounts Receivable Allowances

The following table presents the activity in our accounts receivable allowances (in thousands):

			Additions
			Charged to
	Beginning		Costs and				Ending
	Balance		Expenses		Deductions*		Balance
Year Ended December 25, 2021:
Allowance for possible losses on accounts receivable	$	4,629	$	66,883	$	(66,427)	$	5,085
Year Ended December 26, 2020:
Allowance for possible losses on accounts receivable	$	4,440	$	48,954	$	(48,765)	$	4,629
Year Ended December 28, 2019:
Allowance for possible losses on accounts receivable	$	2,601	$	39,481	$	(37,642)	$	4,440

* Includes accounts charged off, discounts given to customers and actual customer returns and allowances.

Schedule of Estimated Useful Lives of Property, Plant, and Equipment

Land improvements	5 to 15 years
Buildings and improvements	10 to 32 years
Machinery, equipment and office furniture	2 to 20 years

Schedule of Disaggregation of revenue

The following table presents our net sales disaggregated by revenue source (in thousands):

	Year Ended
	December 25,		December 26,		December 28,		2021 vs. 2020	2020 vs. 2019
	2021		2020		2019		% Change	% Change
FOB Shipping Point Revenue	$	8,512,012	$	5,025,895	$	4,272,583	69.4%	17.6%
Construction Contract Revenue		124,122		128,103		143,426	(3.1)%	(10.7)%
Total Net Sales	$	8,636,134	$	5,153,998	$	4,416,009	67.6%	16.7%

Schedule of Percentage of Completion Account Balances

The following table presents the balances of over time accounting accounts on December 25, 2021 and December 26, 2020 which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands):

	December 25,		December 26,
	2021		2020
Cost and Earnings in Excess of Billings	$	5,602	$	4,169
Billings in Excess of Cost and Earnings		10,744		11,530

Schedule of Computation of earnings per share

The computation of EPS is as follows (in thousands):

	December 25,		December 26,		December 28,
	2021		2020		2019
Numerator:
Net earnings attributable to controlling interest	$	535,640	$	246,778	$	179,650
Adjustment for earnings allocated to non-vested restricted common stock		(17,342)		(6,903)		(4,496)
Net earnings for calculating EPS	$	518,298	$	239,875	$	175,154
Denominator:
Weighted average shares outstanding		62,209		61,632		61,649
Adjustment for non-vested restricted common stock		(2,014)		(1,724)		(1,543)
Shares for calculating basic EPS		60,195		59,908		60,106
Effect of dilutive restricted common stock		159		20		24
Shares for calculating diluted EPS		60,354		59,928		60,130
Net earnings per share:
Basic	$	8.61	$	4.00	$	2.91
Diluted	$	8.59	$	4.00	$	2.91

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FAIR VALUE (Tables)

12 Months Ended

Dec. 25, 2021

Assets measured at fair value

	December 25, 2021								December 26, 2020
	Quoted		Prices with						Quoted		Prices with
	Prices in		Other			Prices with			Prices in		Other			Prices with
	Active		Observable			Unobservable			Active		Observable			Unobservable
	Markets		Inputs			Inputs			Markets		Inputs			Inputs
	(Level 1)		(Level 2)			(Level 3)	Total		(Level 1)		(Level 2)			(Level 3)	Total
Money market funds	$	19	$	9,392	$	—	$	9,411	$	19	$	4,643	$	—	$	4,662
Fixed income funds		1,668		16,910		—		18,578		246		16,224		—		16,470
Treasury securities		342		—		—		342		—		—		—		—
Equity securities		20,163		—		—		20,163		12,602		—		—		12,602
Alternative investments		—		—		3,785		3,785		—		—		2,040		2,040
Mutual funds:
Domestic stock funds		10,910		—		—		10,910		8,088		—		—		8,088
International stock funds		1,687		—		—		1,687		1,440		—		—		1,440
Target funds		23		—		—		23		114		—		—		114
Bond funds		146		—		—		146		147		—		—		147
Alternative funds		483		—		—		483		482		—		—		482
Total mutual funds		13,249		—		—		13,249		10,271		—		—		10,271
Total	$	35,441	$	26,302	$	3,785	$	65,528	$	23,138	$	20,867	$	2,040	$	46,045
Assets at fair value	$	35,441	$	26,302	$	3,785	$	65,528	$	23,138	$	20,867	$	2,040	$	46,045

Available for sale investment portfolio

	December 25, 2021						December 26, 2020
			Unrealized						Unrealized
	Cost		Gain		Fair Value		Cost		Gain		Fair Value
Fixed Income	$	18,169	$	409	$	18,578	$	15,325	$	1,145	$	16,470
Treasury Securities		342		—		342		—		—		—
Equity		15,196		4,967		20,163		9,787		2,815		12,602
Mutual Funds		9,222		3,325		12,547		8,235		1,430		9,665
Alternative Investments		3,003		782		3,785		1,904		136		2,040
Total	$	45,932	$	9,483	$	55,415	$	35,251	$	5,526	$	40,777

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BUSINESS COMBINATIONS (Tables)

12 Months Ended

Dec. 25, 2021

Business Acquisitions Accounted for Using Purchase Method

We completed the following business combinations in fiscal 2021 and 2020, which were accounted for using the purchase method (in thousands).

					Net
Company	Acquisition		Intangible		Tangible		Operating
Name	Date	Purchase Price	Assets		Assets		Segment
	December 20, 2021	$20,854 cash paid for 100% stock purchase	$	11,481	$	9,373	Industrial
Advantage Labels & Packaging, Inc. (Advantage)	Based in Grand Rapids, Michigan, Advantage provides blank and customized labels, printers, label applicators and other packaging supplies. Key industries served by the company include beer and beverage; body armor; food production and processing; greenhouse and nursery; hobby and craft; manufacturing; and automotive. The company had trailing 12-month sales through November 2021 of approximately $19.8 million.
	November 22, 2021	$11,155 cash paid for 70% stock purchase	$	9,106	$	2,049	Other
Ficus Pax Private Limited (Ficus)	Headquartered in Bangalore, India, Ficus manufactures mixed-material cases and crates, nail-less plywood boxes, wooden pallets and other packaging products through 10 facilities located in major industrial markets throughout southern India. Ficus also owns a majority stake in Wadpack, a manufacturer of corrugated fiber board containers, corrugated pallets and display solutions. The company had trailing 12-month sales through August 2021 of approximately $39 million USD.
	November 1, 2021	$5,984 cash paid for 100% asset purchase and estimated contingent consideration	$	5,681	$	303	Other
Boxpack Packaging (Boxpack)	Based near Melbourne, Australia, Boxpack specializes in flexographic and lithographic cardboard packaging, using the latest CAD design and finishing techniques. Boxpack serves multiple industries, including food and beverage, confectionary, pharmaceutical, industrial and agricultural. The company had trailing 12-month sales through June 30, 2021, of $8.2 million AUD.
	September 27, 2021	$6,443 cash paid for 100% asset purchase and estimated contingent consideration	$	4,039	$	2,404	Construction
Shelter Products, Inc. (Shelter)	Based in Haleyville, Alabama, Shelter operates its distribution and logistics business from an 87,800 sq.-ft. warehouse that specializes in manufactured housing industry customers. Shelter’s facility is adjacent to a UFP manufacturing facility that supplies trusses to manufactured housing builders, and the proximity will enable additional operational synergies. The Company had sales of approximately $11.4 million in 2020.
	April 29, 2021	$10,129 cash paid for 100% asset purchase	$	7,099	$	3,030	Construction
Endurable Building Products, LLC (Endurable)	Based near Minneapolis, Minnesota, Endurable is a leading manufacturer of customized structural aluminum systems and products for exterior purposes, such as deck framing, balconies, sunshades, railings and stairs. The company’s trademarked alumiLAST aluminum deck and balcony systems are known for their low-maintenance design and ease of installation. Endurable serves general contractors in the multifamily market throughout the U.S. and had sales of approximately $15 million in 2020.
	April 19, 2021	$8,549 cash paid for 100% asset purchase	$	1,526	$	7,023	Retail
Walnut Hollow Farm, Inc.	Walnut Hollow Farm, located in Wisconsin, is engaged in the business of designing, manufacturing, selling, and distributing wood products, tools, and accessories for the craft and hobby, outdoor sportsman art, personalized home décor, and hardware categories, with sales of approximately $11.6 million in 2020.

					Net
Company	Acquisition		Intangible		Tangible		Operating
Name	Date	Purchase Price	Assets		Assets		Segment
	April 12, 2021	$153,462 cash paid for 100% asset purchase	$	—	$	153,462	Retail
Spartanburg Forest Products, Inc.	Headquartered in Greer, South Carolina, Spartanburg Forest Products and its affiliates are a premier wood treating operation in the U.S., with approximately 150 employees and operations in five states. Its affiliates include Appalachian Forest Products, Innovative Design Industries, Blue Ridge Wood Preserving, Blue Ridge Wood Products, and Tidewater Wood Products and had combined sales of approximately $543.0 million in 2020.
	March 1, 2021	$4,724 cash paid for 100% asset purchase and estimated contingent consideration	$	4,264	$	460	Other
J.C. Gilmore Pty Ltd (Gilmores)	Founded in 1988 and operating from its distribution facility in Port Melbourne, Australia, Gilmores is a leading distributor in the industrial and construction industries of packaging tapes, stretch films, packaging equipment, strapping, construction protection products and other items, with 2020 sales of $15 million AUD ($10 million USD).
	December 28, 2020	$259,011 cash paid for 100% stock purchase	$	79,917	$	179,094	Retail/Industrial
PalletOne, Inc. (PalletOne)	Based in Bartow, Florida, PalletOne is a leading manufacturer of new pallets in the U.S., with 17 pallet manufacturing facilities in the southern and eastern regions of the country. The company also supplies other specialized industrial packaging, including custom bins and crates, and its Sunbelt Forest Products (Sunbelt) subsidiary operates five pressure-treating facilities in the Southeastern U.S. PalletOne and its affiliates had 2020 sales of $698 million.
	November 10, 2020	$21,268 cash paid for 100% asset purchase	$	11,923	$	9,345	Construction
Atlantic Prefab, Inc.; Exterior Designs, LLC; and Patriot Building Systems, LLC	Based in Wilton, New Hampshire, Atlantic Prefab produces prefabricated steel wall panels and light gauge metal trusses. The company’s steel component and prefinished wall panel lines are new, value-added product additions for UFP Construction that help shorten project timelines. Exterior Designs is a leading installer of siding and exterior cladding such as fiber cement, ACM (aluminum composite material) panels, phenolic panels, and EIFS (exterior insulation and finish systems). The company is based in Londonderry, New Hampshire, and serves commercial and multi-family clients throughout the Northeast. Also based in Londonderry, Patriot Building Systems provides commercial and multi-family framing services in the Northeast and will focus on markets not currently served by companies of UFP Industries. The companies had combined annual sales of approximately $28 million.
	October 1, 2020	$5,936 cash paid for 100% stock purchase	$	5,222	$	714	Retail
Fire Retardant Chemical Technologies, LLC (FRCT)	Founded in 2014 and based in Matthews, North Carolina, FRCT’s business includes a research and development laboratory specializing in developing and testing a wide range of high-performance chemicals, including fire retardants and water repellants. The company had annual sales of approximately $6.4 million.

					Net
Company	Acquisition		Intangible		Tangible		Operating
Name	Date	Purchase Price	Assets		Assets		Segment
	September 30, 2020	$3,475 cash paid for 50% stock purchase and estimated contingent consideration	$	7,267	$	(1,369)	Other
Enwrap Logistic & Packaging S.r.l. (Enwrap)	Enwrap is a newly formed company dedicated to the logistics and packaging business of its predecessor, Job Service S.p.A. Headquartered in Milan, Italy, Enwrap provides high-value, mixed material industrial packaging and logistics services through eight locations in Italy. These locations generated annual sales of approximately $14 million.
	July 14, 2020	$18,496 cash paid for 100% asset purchase and estimated contingent consideration	$	12,458	$	6,038	Industrial
T&R Lumber Company (T&R)	A manufacturer and distributor of a range of products used primarily by nurseries, including plastic growing containers, pots and trays; wooden stakes; trellises; tree boxes; shipping racks; and other nursery supplies based in Rancho Cucamonga, California. T&R had annual sales of approximately $31 million. The acquisition of T&R will allow us to leverage their expertise using our national manufacturing capacity to grow our agricultural product offerings and customer base across the country.
	March 13, 2020	$22,951 cash paid for 100% asset purchase and estimated contingent consideration	$	20,262	$	2,689	Construction
Quest Design & Fabrication and Quest Architectural Millwork (Quest)	A designer, fabricator, and installer of premium millwork and case goods for a variety of commercial uses. Quest had annual sales of approximately $22 million. The acquisition of Quest expands our architectural millwork capabilities and expertise in our commercial construction business unit, and will allow us to use our national manufacturing capacity to grow and diversify our sales to this end market

Acquired Intangible Assets

At December 25, 2021, the amounts assigned to major intangible classes for the business combinations mentioned above are as follows (in thousands):

	Non-												Intangibles -
	Compete				Customer								Tax
	Agreements		Patents		Relationships			Tradename		Goodwill			Deductible
Advantage	$	—	$	—	$	—		$	—	$	11,481	*	$	11,481
Ficus		—		—		—			—		8,889	*		8,889
Boxpack		—		—		2,694	*		—		1,978	*		4,672
Shelter		—		—		2,019	*		—		2,020	*		4,039
Endurable		—		—		4,617	*		—		2,482	*		7,099
Walnut Hollow		—		—		1,263	*		—		263	*		1,526
Gilmores		—		—		1,938	*		—		1,938	*		3,876
PalletOne		—		—		18,089			17,450		44,378			79,917
Atlantic Prefab		417		—		1,620			150		1,356			3,543
Exterior Designs		667		—		2,592			240		2,241			5,740
Patriot Building Systems		306		—		1,188			110		1,036			2,640
FRCT		1,090		—		1,960			210		1,962			5,222
Enwrap		790		1,293		558			474		3,705			6,820
T&R		600		—		5,000			2,600		4,258			12,458
Quest		—		—		10,318			1,903		8,041			20,262

*(estimate)

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 25, 2021

Schedule of Goodwill by Segment

The changes in the net carrying amount of goodwill by reporting segment for the years ended December 25, 2021 and December 26, 2020, are as follows (in thousands):

	Retail		Industrial		Construction		All Other		Corporate		Total
Balance as of December 28, 2019	$	58,098	$	81,276	$	82,911	$	7,251	$	—	$	229,536
2020 Acquisitions		3,643		6,549		18,902		4,441		—		33,535
2020 Purchase Accounting Adjustments		202		2		—		—		—		204
2020 Impairments		—		—		(11,485)		—		—		(11,485)
Foreign Exchange, Net		—		—		401		2		—		403
Balance as of December 26, 2020	$	61,943	$	87,827	$	90,729	$	11,694	$	—	$	252,193
2021 Acquisitions		13,115		43,006		4,502		13,880		—		74,503
2021 Purchase Accounting Adjustments		(1,682)		(2,292)		(6,228)		(478)		—		(10,680)
Foreign Exchange, Net		—		—		(3)		(975)		—		(978)
Balance as of December 25, 2021	$	73,376	$	128,541	$	89,000	$	24,121	$	—	$	315,038

Other Intangible Assets

The following amounts were included in other amortizable intangible assets, net as of December 25, 2021 and December 26, 2020 (in thousands):

	2021						2020
			Accumulated						Accumulated
	Assets		Amortization		Net Value		Assets		Amortization		Net Value
Non-compete agreements	$	8,490	$	(4,160)	$	4,330	$	4,847	$	(2,728)	$	2,119
Customer relationships and other		101,158		(25,012)		76,146		80,343		(17,021)		63,322
Licensing agreements		4,589		(4,589)		—		4,589		(4,589)		—
Patents		3,221		(1,137)		2,084		965		(509)		456
Tradename		30,392		(4,599)		25,793		8,019		(2,123)		5,896
Software		959		(295)		664		505		(46)		459
Total	$	148,809	$	(39,792)	$	109,017	$	99,268	$	(27,016)	$	72,252

Estimated Useful Lives of Intangible Assets

		Weighted Average
Intangible Asset Type	Estimated Useful Life	Amortization Period
Non-compete agreements	3 to 15 years	7.8 years
Customer relationship	5 to 15 years	9.7 years
Licensing agreements	10 years	10 years
Patents	10 years	10 years
Tradename (amortizable)	5 to 15 years	11 years
Software	3 to 5 years	3.5 years

Expected Amortization Expense

Amortization expense of intangibles totaled $13.9 million, $8.7 million and $6.3 million in 2021, 2020 and 2019, respectively. The estimated amortization expense for intangibles for each of the five succeeding fiscal years is as follows (in thousands):

2022	$	13,734
2023		12,878
2024		12,409
2025		11,901
2026		10,944
Thereafter		47,151
Total	$	109,017

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DEBT (Tables)

12 Months Ended

Dec. 25, 2021

Long-term Debt and Capital Lease Obligations

Long-term debt obligations are summarized as follows on December 25, 2021 and December 26, 2020 (amounts in thousands):

	2021		2020
Series 2020 Senior Notes E, due on August 10, 2032, interest payable semi-annually at 3.04%	$	50,000	$	50,000
Series 2020 Senior Notes F, due on August 10, 2033, interest payable semi-annually at 3.08%		50,000		50,000
Series 2020 Senior Notes G, due on August 10, 2035, interest payable semi-annually at 3.15%		50,000		50,000
Series 2018 Senior Notes C, due on June 14, 2028, interest payable semi-annually at 4.20%		40,000		40,000
Series 2018 Senior Notes D, due on June 14, 2030, interest payable semi-annually at 4.27%		35,000		35,000
Series 2012 Senior Notes Tranche A, due on December 17, 2022, interest payable semi-annually at 3.89%		35,000		35,000
Series 2012 Senior Notes Tranche B, due on December 17, 2024, interest payable semi-annually at 3.98%		40,000		40,000
Foreign subsidiary borrowings under revolving credit facility, due on November 1, 2023, interest payable monthly at a floating rate (1.06% on December 25, 2021 and 1.125% on December 26, 2020)		7,818		4,715
Series 1999 Industrial Development Revenue Bonds, due on August 1, 2029, interest payable monthly at a floating rate (0.14% on December 25, 2021 and 0.20% on December 26, 2020)		3,300		3,300
Series 2002 Industrial Development Revenue Bonds, due on December 1, 2022, interest payable monthly at a floating rate (0.18% on December 25, 2021 and 0.22% on December 26, 2020)		3,700		3,700
Finance leases and foreign affiliate debt		5,544		138
		320,362		311,853
Less current portion		(42,683)		(100)
Less debt issuance costs		(112)		(146)
Long-term portion	$	277,567	$	311,607

Principal Maturities of Long-term Debt and Capital Lease Obligations

On December 25, 2021, the principal maturities of long-term debt and finance lease obligations are as follows (in thousands):

2022	$	42,683
2023		8,863
2024		40,214
2025		—
2026		302
Thereafter		228,300
Total	$	320,362

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LEASES (Tables)

12 Months Ended

Dec. 25, 2021

Schedule of lease costs

Lease costs under non-cancelable operating leases on December 25, 2021 and December 26, 2020 are as follows (in thousands):

		2021		2020
Operating lease cost	$	30,054	$	21,594
Short-term lease cost		5,264		2,863
Variable lease cost		4,761		3,985
Sublease income		(3,109)		(1,013)
Total lease cost	$	36,970	$	27,429

Future Minimum Lease Payments

Future minimum payments under non-cancelable operating leases on December 25, 2021 are as follows (in thousands):

	Operating
	Leases
2022	$	26,378
2023		21,040
2024		15,842
2025		13,164
2026		11,140
Thereafter		27,123
Total minimum lease payments	$	114,687
Less present value discount		(14,900)
Total lease liability	$	99,787

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COMMON STOCK (Tables)

12 Months Ended

Dec. 25, 2021

Schedule of common stock issuances

	December 25, 2021
Share Issuance Activity	Common Stock		Average Share Price
Shares issued under the employee stock purchase plan	33	$	75.18
Shares issued under the employee stock gift program	2		78.37
Shares issued under the director retainer stock program	5		72.66
Shares issued under the bonus plan	487		59.56
Shares issued under the executive stock match plan	77		60.24
Forfeitures	(24)
Total shares issued under stock grant programs	547	$	59.84
Shares issued under the deferred compensation plans	117	$	64.14

	December 26, 2020
Share Issuance Activity	Common Stock		Average Share Price
Shares issued under the employee stock purchase plan	35	$	46.71
Shares issued under the employee stock gift program	3		48.10
Shares issued under the director retainer stock program	46		25.31
Shares issued under the bonus plan	271		47.52
Shares issued under the executive stock grants plan	79		47.60
Forfeitures	(9)
Total shares issued under stock grant programs	390	$	44.96
Shares issued under the deferred compensation plans	128	$	53.79

Nonvested Restricted Shares Activity

A summary of the nonvested restricted stock awards granted under the LTSIP is as follows:

						Weighted-
				Unrecognized		Average
		Weighted-		Compensation		Period to
	Restricted	Average Grant		Expense		Recognize
	Awards	Date Fair Value		(in millions)		Expense
Nonvested at December 29, 2018	1,160,079	$	23.32	$	7.6	1.12 years
Granted	318,496		32.60
Vested	(224,894)		23.42
Forfeited	(50,786)		24.18
Nonvested at December 28, 2019	1,202,895	$	29.68	$	7.9	0.86 years
Granted	348,016		47.60
Vested	(177,790)		22.69
Forfeited	(9,327)		33.46
Nonvested at December 26, 2020	1,363,794	$	35.14	$	6.3	0.62 years
Granted	560,516		60.24
Vested	(274,271)		26.50
Forfeited	(23,007)		39.68
Nonvested at December 25, 2021	1,627,032	$	45.23	$	6.6	0.43 years

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INCOME TAXES (Tables)

12 Months Ended

Dec. 25, 2021

Components of Income Tax Expense (Benefit)

Income tax provisions for the years ended December 25, 2021, December 26, 2020, and December 28, 2019 are summarized as follows (in thousands):

	2021		2020		2019
Currently Payable:
Federal	$	115,077	$	59,055	$	35,267
State and local		30,441		16,709		10,071
Foreign		21,095		8,601		5,834
		166,613		84,365		51,172
Net Deferred:
Federal		6,242		2,292		6,895
State and local		118		(1,518)		805
Foreign		999		1,962		(602)
		7,359		2,736		7,098
Total income tax expense	$	173,972	$	87,101	$	58,270

Components of Earnings Before Income Taxes

	2021		2020		2019
U.S.	$	645,316	$	308,167	$	220,532
Foreign		81,020		32,816		20,142
Total	$	726,336	$	340,983	$	240,674

Effective Income Tax Rate Reconciliation

	2021		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
State and local taxes (net of  federal benefits)	3.3		3.4		3.9
Effect of noncontrolling owned interest in earnings of partnerships	n/a		n/a		(0.1)
Tax credits, including foreign tax credit	(0.6)		(0.9)		(1.3)
Change in uncertain tax positions reserve	(0.1)		(0.1)		(0.1)
Other permanent differences	(0.4)		0.6		0.5
Other, net	0.7		1.5		0.3
Effective income tax rate	23.9	%	25.5	%	24.2	%

Components of Deferred Tax Assets and Liabilities

Temporary differences which give rise to deferred income tax assets and (liabilities) on December 25, 2021 and December 26, 2020 are as follows (in thousands):

	2021		2020
Employee benefits	$	27,543	$	23,236
Lease liability		24,627		19,376
Net operating loss carryforwards		5,502		6,463
Foreign subsidiary capital loss carryforward		527		527
Other tax credits		450		391
Inventory		2,007		1,633
Reserves on receivables		1,446		1,630
Accrued expenses		5,735		3,071
Other, net		5,233		8,483
Gross deferred income tax assets		73,070		64,810
Valuation allowance		(3,952)		(4,044)
Deferred income tax assets		69,118		60,766
Depreciation		(64,387)		(41,403)
Intangibles		(38,367)		(22,840)
Right of use assets		(23,866)		(19,376)
Deferred income tax liabilities		(126,620)		(83,619)
Net deferred income tax liability	$	(57,502)	$	(22,853)

Schedule of NOL and credit carryforwards

	Net Operating Losses						Tax Credits
	U.S.		State		Foreign		U.S.		State
2022 - 2026	$	—	$	—	$	536	$	—	$	—
2027 - 2031		—		436		1,424		—		—
2032 - 2036		—		670		106		—		450
2037 - 2041		790		808		—		—		—
Thereafter		—		438		294		—		—
Total	$	790	$	2,352	$	2,360	$	—	$	450

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ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (Tables)

12 Months Ended

Dec. 25, 2021

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

	2021		2020		2019
Gross unrecognized tax benefits beginning of year	$	3,892	$	4,166	$	4,378
Increase in tax positions for prior years		437		(82)		(129)
Increase in tax positions for current year		839		730		768
Lapse in statute of limitations		(1,565)		(922)		(851)
Gross unrecognized tax benefits end of year	$	3,603	$	3,892	$	4,166

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SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 25, 2021

Segment Reporting

	2021
							All
	Retail		Industrial		Construction		Other		Corporate		Total
Net sales to outside customers	$	3,418,337	$	2,148,142	$	2,698,434	$	362,473	$	8,748	$	8,636,134
Intersegment net sales		214,400		85,954		82,026		455,874		(838,254)		—
Interest expense		98		12		1		184		13,519		13,814
Amortization expense		2,780		6,093		3,525		1,336		214		13,948
Depreciation expense		16,955		26,219		13,151		2,094		25,765		84,184
Segment earnings before income taxes		124,790		264,958		264,238		80,905		(8,555)		726,336
Segment assets		844,189		741,672		736,157		343,363		579,890		3,245,271
Capital expenditures		40,408		42,652		22,344		5,140		40,622		151,166

	2020
							All
	Retail		Industrial		Construction		Other		Corporate		Total
Net sales to outside customers	$	2,167,122	$	1,072,117	$	1,695,684	$	217,094	$	1,981	$	5,153,998
Intersegment net sales		142,839		45,217		68,294		283,689		(540,039)		—
Interest expense		2		22		—		90		9,197		9,311
Amortization expense		1,482		4,159		2,152		877		46		8,716
Depreciation expense		11,675		15,163		12,123		1,619		23,384		63,964
Segment earnings before income taxes		155,364		83,430		69,092		38,333		(5,236)		340,983
Segment assets		510,464		416,487		510,972		196,856		770,112		2,404,891
Capital expenditures		16,277		21,141		16,902		2,258		32,604		89,182

	2019
							All
	Retail		Industrial		Construction		Other		Corporate		Total
Net sales to outside customers	$	1,498,710	$	1,085,635	$	1,637,156	$	193,785	$	723	$	4,416,009
Intersegment net sales		135,705		45,010		56,116		200,426		(437,257)		—
Interest expense		—		108		16		97		8,479		8,700
Amortization expense		1,380		3,034		1,164		747		—		6,325
Depreciation expense		11,041		14,340		11,465		1,532		22,116		60,494
Segment earnings before income taxes		61,708		82,913		82,407		22,025		(8,379)		240,674
Segment assets		402,221		377,329		522,638		136,990		450,299		1,889,477
Capital expenditures		15,502		20,134		16,097		2,150		31,050		84,933

Information Regarding Principal Geographic Areas

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

	2021				2020				2019
			Long-Lived				Long-Lived				Long-Lived
			Tangible				Tangible				Tangible
	Net Sales		Assets		Net Sales		Assets		Net Sales		Assets
United States	$	8,395,737	$	679,757	$	5,022,014	$	478,325	$	4,308,618	$	469,605
Foreign		240,397		54,873		131,984		36,380		107,391		36,878
Total	$	8,636,134	$	734,630	$	5,153,998	$	514,705	$	4,416,009	$	506,483

Gross Sales by Major Product Classification

The following table presents, for the periods indicated, our disaggregated net sales (in thousands) by business unit for each segment and our percentage of value-added and commodity-based sales to total net sales by segment.

	Year Ended
	December 25,		December 26,		December 28,
	2021		2020		2019
Retail
Deckorators	$	248,765	$	219,930	$	185,221
Prowood		1,349,901		1,215,201		786,720
Outdoor Essentials		392,826		299,684		227,767
Sunbelt		773,909		—		—
UFP Edge		148,927		114,987		95,608
Handprint		101,090		88,351		52,553
Retail Building Materials		395,894		225,253		149,153
Other		7,025		3,716		1,688
Total Retail	$	3,418,337	$	2,167,122	$	1,498,710
Industrial
North Industrial	$	615,092	$	385,132	$	376,515
Southeast Industrial		395,069		229,316		255,419
Southwest Industrial		400,515		238,643		241,774
West Industrial		363,300		206,022		197,686
PalletOne		355,347		—		—
Protective Packaging		18,819		13,004		14,241
Total Industrial	$	2,148,142	$	1,072,117	$	1,085,635
Construction
Factory Built	$	1,098,905	$	597,017	$	479,927
Site Built		1,190,393		725,899		708,767
Commercial		259,360		221,988		290,785
Concrete Forming		149,776		150,780		157,677
Total Construction	$	2,698,434	$	1,695,684	$	1,637,156
All Other	$	362,473	$	217,094	$	193,785
Corporate	$	8,748	$	1,981	$	723
Total Net Sales	$	8,636,134	$	5,153,998	$	4,416,009
Value-Added
Retail		43.2%		53.8%		57.8%
Industrial		67.7%		64.7%		66.2%
Construction		73.0%		76.3%		81.4%
All Other and Corporate		74.9%		75.6%		75.8%
Total		59.7%		64.3%		69.3%
Commodity-Based
Retail		56.8%		46.2%		42.2%
Industrial		32.3%		35.3%		33.8%
Construction		27.0%		23.7%		18.6%
All Other and Corporate		25.1%		24.4%		24.2%
Total		40.3%		35.7%		30.7%

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QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 25, 2021

Quarterly Financial Information

The following table sets forth selected financial information for all of the quarters, consisting of 13 weeks during the years ended December 25, 2021 and December 26, 2020, respectively, (in thousands, except per share data):

	First				Second				Third				Fourth
	2021		2020		2021		2020		2021		2020		2021		2020
Net sales	$	1,825,004	$	1,032,062	$	2,700,541	$	1,242,001	$	2,093,784	$	1,486,227	$	2,016,805	$	1,393,708
Gross profit		286,554		167,236		421,294		204,931		327,555		241,074		371,564		187,055
Net earnings		104,251		40,570		175,360		69,694		125,747		78,861		147,006		64,757
Net earnings attributable to controlling interest		103,311		40,159		173,382		66,463		121,041		77,204		137,906		62,952
Basic earnings per share		1.67		0.65		2.79		1.08		1.94		1.25		2.21		1.02
Diluted earnings per share		1.67		0.65		2.78		1.08		1.94		1.25		2.21		1.02

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 26, 2020 USD ($)	Dec. 25, 2021 USD ($) item contract customer	Dec. 26, 2020 USD ($)	Dec. 28, 2019
Summary of significant accounting policies
Number of markets | item		3
Requisite ownership to consolidate (in hundredths) (or more)		50.00%
Length of fiscal year		364 days	364 days	364 days
Restricted investments		$ 19,300
Accounts receivable retainage	$ 8,700	$ 7,800	$ 8,700
Accounts receivable retainage, collection period		18 months
Inventory on consignment	20,800	$ 37,800	20,800
Number of insurance contracts with third party by Ardellis | contract		43
Reserve associated with contracts to third party by Ardellis	4,500	$ 7,100	4,500
Goodwill
Goodwill impairment			11,485
New accounting pronouncement
Retained earnings	1,182,680	1,678,121	1,182,680
Right-of-use assets	77,245	96,703	77,245
Operating lease liability		$ 99,787
Construction | Commercial
Goodwill
Goodwill impairment	11,500
Accounts receivables | Customer Concentration | Top two customers
Summary of significant accounting policies
Top two customers | customer		2
Concentration of accounts receivable related to largest customers	$ 97,900	$ 87,600	$ 97,900
Minimum
Summary of significant accounting policies
Length of fiscal year		364 days
Maximum
Summary of significant accounting policies
Length of fiscal year		371 days

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accounts Receivable Allowances (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Allowance for Doubtful Accounts Receivable [Roll Forward]
Beginning Balance	$ 4,629	$ 4,440	$ 2,601
Additions Charged to Costs and Expenses	66,883	48,954	39,481
Deductions	(66,427)	(48,765)	(37,642)
Ending Balance	$ 5,085	$ 4,629	$ 4,440

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Lives of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020
Property, Plant and Equipment
Property, plant and equipment	$ 1,212,113	$ 974,497
Accumulated amortization	$ 623,093	557,335
Land Improvements | Minimum
Property, Plant and Equipment
Property, plant and equipment, useful life	5 years
Land Improvements | Maximum
Property, Plant and Equipment
Property, plant and equipment, useful life	15 years
Building and Improvements | Minimum
Property, Plant and Equipment
Property, plant and equipment, useful life	10 years
Building and Improvements | Maximum
Property, Plant and Equipment
Property, plant and equipment, useful life	32 years
Machinery, Equipment and Office Furniture | Minimum
Property, Plant and Equipment
Property, plant and equipment, useful life	2 years
Machinery, Equipment and Office Furniture | Maximum
Property, Plant and Equipment
Property, plant and equipment, useful life	20 years
Software costs
Property, Plant and Equipment
Property, plant and equipment	$ 6,000	5,500
Accumulated amortization	$ 5,300	$ 4,900

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 25, 2021 USD ($)	Sep. 25, 2021 USD ($)	Jun. 26, 2021 USD ($)	Mar. 27, 2021 USD ($)	Dec. 26, 2020 USD ($)	Sep. 26, 2020 USD ($)	Jun. 27, 2020 USD ($)	Mar. 28, 2020 USD ($)	Dec. 25, 2021 USD ($) segment	Dec. 26, 2020 USD ($)	Dec. 28, 2019 USD ($)
Revenue Recognition.
Retained earnings	$ 1,678,121				$ 1,182,680				$ 1,678,121	$ 1,182,680
Number of primary segments the Company operates | segment									3
Net sales	$ 2,016,805	$ 2,093,784	$ 2,700,541	$ 1,825,004	$ 1,393,708	$ 1,486,227	$ 1,242,001	$ 1,032,062	$ 8,636,134	$ 5,153,998	$ 4,416,009
Change % in net sales									67.60%	16.70%
FOB Shipping Point Revenue
Revenue Recognition.
Net sales									$ 8,512,012	$ 5,025,895	4,272,583
Change % in net sales									69.40%	17.60%
Construction Contract Revenue
Revenue Recognition.
Net sales									$ 124,122	$ 128,103	$ 143,426
Change % in net sales									(3.10%)	(10.70%)
Minimum
Revenue Recognition.
Number of months to complete contract projects	6 months								6 months
Maximum
Revenue Recognition.
Number of months to complete contract projects	18 months								18 months

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Percentage of Completion Account Balances (Details) - USD ($) $ in Thousands	Dec. 25, 2021	Dec. 26, 2020
Cost and Earnings in Excess of Billings	$ 5,602	$ 4,169
Billings in Excess of Cost and Earnings	$ 10,744	$ 11,530

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 25, 2021	Sep. 25, 2021	Jun. 26, 2021	Mar. 27, 2021	Dec. 26, 2020	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Numerator:
Net earnings attributable to controlling interest	$ 137,906	$ 121,041	$ 173,382	$ 103,311	$ 62,952	$ 77,204	$ 66,463	$ 40,159	$ 535,640	$ 246,778	$ 179,650
Adjustment for earnings allocated to non-vested restricted common stock									(17,342)	(6,903)	(4,496)
Net earnings for calculating EPS									$ 518,298	$ 239,875	$ 175,154
Denominator:
Weighted average shares outstanding (in shares)									62,209	61,632	61,649
Adjustment for non-vested restricted common stock (in shares)									(2,014)	(1,724)	(1,543)
Shares for calculating basic EPS (in shares)									60,195	59,908	60,106
Effect of dilutive restricted common stock (in shares)									159	20	24
Shares for calculating diluted EPS (in shares)									60,354	59,928	60,130
Net earnings per share
Basic (USD per share)	$ 2.21	$ 1.94	$ 2.79	$ 1.67	$ 1.02	$ 1.25	$ 1.08	$ 0.65	$ 8.61	$ 4.00	$ 2.91
Diluted (USD per share)	$ 2.21	$ 1.94	$ 2.78	$ 1.67	$ 1.02	$ 1.25	$ 1.08	$ 0.65	$ 8.59	$ 4.00	$ 2.91

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FAIR VALUE - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands	Dec. 25, 2021	Dec. 26, 2020
Money market funds | Cash and Cash Equivalents
Fair Value
Investments at fair value	$ 9,000
Money market funds | Restricted Investment
Fair Value
Investments at fair value	400
Fixed Income | Restricted Investment
Fair Value
Investments at fair value	18,900
Mutual funds, equity and alternative investments | Investments
Fair Value
Investments at fair value	36,500
Money market and mutual funds | Other Non current Assets
Fair Value
Investments at fair value	700
Ardellis Insurance Ltd.
Fair Value
Total Fair Value	55,415	$ 40,777
Estimate of Fair Value Measurement | Recurring
Fair Value
Investments at fair value	65,528	46,045
Assets at fair value	65,528	46,045
Estimate of Fair Value Measurement | Recurring | Money market funds
Fair Value
Investments at fair value	9,411	4,662
Estimate of Fair Value Measurement | Recurring | Fixed Income
Fair Value
Investments at fair value	18,578	16,470
Estimate of Fair Value Measurement | Recurring | Treasury securities
Fair Value
Investments at fair value	342
Estimate of Fair Value Measurement | Recurring | Equity
Fair Value
Investments at fair value	20,163	12,602
Estimate of Fair Value Measurement | Recurring | Alternative Investments
Fair Value
Investments at fair value	3,785	2,040
Estimate of Fair Value Measurement | Recurring | Mutual Fund
Fair Value
Investments at fair value	13,249	10,271
Estimate of Fair Value Measurement | Recurring | Domestic stock
Fair Value
Investments at fair value	10,910	8,088
Estimate of Fair Value Measurement | Recurring | International stock funds
Fair Value
Investments at fair value	1,687	1,440
Estimate of Fair Value Measurement | Recurring | Target funds
Fair Value
Investments at fair value	23	114
Estimate of Fair Value Measurement | Recurring | Bond funds
Fair Value
Investments at fair value	146	147
Estimate of Fair Value Measurement | Recurring | Alternative funds
Fair Value
Investments at fair value	483	482
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1)
Fair Value
Investments at fair value	35,441	23,138
Assets at fair value	35,441	23,138
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Money market funds
Fair Value
Investments at fair value	19	19
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Fixed Income
Fair Value
Investments at fair value	1,668	246
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Treasury securities
Fair Value
Investments at fair value	342
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Equity
Fair Value
Investments at fair value	20,163	12,602
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Mutual Fund
Fair Value
Investments at fair value	13,249	10,271
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Domestic stock
Fair Value
Investments at fair value	10,910	8,088
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | International stock funds
Fair Value
Investments at fair value	1,687	1,440
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Target funds
Fair Value
Investments at fair value	23	114
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Bond funds
Fair Value
Investments at fair value	146	147
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Alternative funds
Fair Value
Investments at fair value	483	482
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2)
Fair Value
Investments at fair value	26,302	20,867
Assets at fair value	26,302	20,867
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Money market funds
Fair Value
Investments at fair value	9,392	4,643
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Fixed Income
Fair Value
Investments at fair value	16,910	16,224
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3)
Fair Value
Investments at fair value	3,785	2,040
Assets at fair value	3,785	2,040
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | Alternative Investments
Fair Value
Investments at fair value	$ 3,785	$ 2,040

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FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. - USD ($) $ in Thousands	Dec. 25, 2021	Dec. 26, 2020
Available-for-sale securities
Total Securities Cost	$ 45,932	$ 35,251
Unrealized Gain (Loss)	9,483	5,526
Total Fair Value	55,415	40,777
Fixed Income
Available-for-sale securities
Debt Securities Cost	18,169	15,325
Debt Securities Unrealized Gain/(Loss)	409	1,145
Debt Securities Fair Value	18,578	16,470
Treasury securities
Available-for-sale securities
Debt Securities Cost	342
Debt Securities Fair Value	342
Equity
Available-for-sale securities
Equity Securities Cost	15,196	9,787
Equity Securities Unrealized Gain/(Loss)	4,967	2,815
Equity Securities Fair Value	20,163	12,602
Mutual Fund
Available-for-sale securities
Debt Securities Cost	9,222	8,235
Debt Securities Unrealized Gain/(Loss)	3,325	1,430
Debt Securities Fair Value	12,547	9,665
Alternative Investments
Available-for-sale securities
Debt Securities Cost	3,003	1,904
Debt Securities Unrealized Gain/(Loss)	782	136
Debt Securities Fair Value	$ 3,785	$ 2,040

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BUSINESS COMBINATIONS (Details) $ in Thousands, $ in Millions																	12 Months Ended
	Dec. 20, 2021 USD ($)	Nov. 22, 2021 USD ($) location	Nov. 01, 2021 USD ($)	Nov. 01, 2021 AUD ($)	Sep. 27, 2021 USD ($) ft²	Apr. 29, 2021 USD ($)	Apr. 19, 2021 USD ($)	Apr. 12, 2021 USD ($) employee state	Mar. 01, 2021 USD ($)	Mar. 01, 2021 AUD ($)	Dec. 28, 2020 USD ($) facility	Nov. 10, 2020 USD ($)	Oct. 01, 2020 USD ($)	Sep. 30, 2020 USD ($) location	Jul. 14, 2020 USD ($)	Mar. 13, 2020 USD ($)	Dec. 25, 2021 USD ($)
Business Acquisition
Aggregate acquisitions' net sales																	$ 1,200
Aggregate acquisitions' operating profit																	$ 50,500
Advantage | Industrial
Business Acquisition
Purchase Price	$ 20,854
Percentage of stock purchase (as a percent)	100.00%
Intangible Assets	$ 11,481
Net Tangible Assets	9,373
Acquired entity, trailing 12-months sales	$ 19,800
Ficus | All Other
Business Acquisition
Purchase Price		$ 11,155
Percentage of stock purchase (as a percent)		70.00%
Number of plant locations | location		10
Intangible Assets		$ 9,106
Net Tangible Assets		2,049
Acquired entity, trailing 12-months sales		$ 39,000
Boxpack Packaging | All Other
Business Acquisition
Purchase Price			$ 5,984
Percentage of assets purchased (as a percent)			100.00%
Intangible Assets			$ 5,681
Net Tangible Assets			$ 303
Acquired entity, trailing 12-months sales				$ 8.2
Shelter Products | Construction
Business Acquisition
Purchase Price					$ 6,443
Percentage of assets purchased (as a percent)					100.00%
Intangible Assets					$ 4,039
Net Tangible Assets					2,404
Acquired entity, prior year sales					$ 11,400
Square feet of warehouse | ft²					87,800
Endurable Building Products | Construction
Business Acquisition
Purchase Price						$ 10,129
Percentage of assets purchased (as a percent)						100.00%
Intangible Assets						$ 7,099
Net Tangible Assets						3,030
Acquired entity, prior year sales						$ 15,000
Walnut Hollow Farm, Inc. | Retail
Business Acquisition
Purchase Price							$ 8,549
Percentage of assets purchased (as a percent)							100.00%
Intangible Assets							$ 1,526
Net Tangible Assets							7,023
Acquired entity, prior year sales							$ 11,600
Spartanburg Forest Products, Inc. | Retail
Business Acquisition
Purchase Price								$ 153,462
Percentage of assets purchased (as a percent)								100.00%
Net Tangible Assets								$ 153,462
Acquired entity, prior year sales								$ 543,000
Number of Employees | employee								150
Number of states in which the entity operates | state								5
J. C. Gilmore Pty Ltd | All Other
Business Acquisition
Purchase Price									$ 4,724
Percentage of assets purchased (as a percent)									100.00%
Intangible Assets									$ 4,264
Net Tangible Assets									460
Acquired entity, prior year sales									$ 10,000	$ 15.0
PalletOne | Industrial
Business Acquisition
Purchase Price											$ 259,011
Percentage of stock purchase (as a percent)											100.00%
Intangible Assets											$ 79,917
Net Tangible Assets											179,094
Acquired entity, trailing 12-months sales											$ 698,000
Number of pallet manufacturing facilities | facility											17
Number of pressure-treating facilities | facility											5
Atlantic Prefab, Inc., Exterior Designs, LLC and Patriot Building Systems, LLC | Construction
Business Acquisition
Purchase Price												$ 21,268
Percentage of assets purchased (as a percent)												100.00%
Intangible Assets												$ 11,923
Net Tangible Assets												9,345
Acquired entity, prior year sales												$ 28,000
FRCT | Retail
Business Acquisition
Purchase Price													$ 5,936
Percentage of assets purchased (as a percent)													100.00%
Intangible Assets													$ 5,222
Net Tangible Assets													714
Acquired entity, prior year sales													$ 6,400
Enwrap | All Other
Business Acquisition
Purchase Price														$ 3,475
Percentage of assets purchased (as a percent)														50.00%
Number of plant locations | location														8
Intangible Assets														$ 7,267
Net Tangible Assets														(1,369)
Acquired entity, prior year sales														$ 14,000
T&R Lumber Company | Industrial
Business Acquisition
Purchase Price															$ 18,496
Percentage of assets purchased (as a percent)															100.00%
Intangible Assets															$ 12,458
Net Tangible Assets															6,038
Acquired entity, prior year sales															$ 31,000
Quest Design | Construction
Business Acquisition
Purchase Price																$ 22,951
Percentage of assets purchased (as a percent)																100.00%
Intangible Assets																$ 20,262
Net Tangible Assets																2,689
Acquired entity, prior year sales																$ 22,000

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BUSINESS COMBINATIONS - Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Business Acquisition
GOODWILL	$ 315,038	$ 252,193	$ 229,536
Advantage
Business Acquisition
GOODWILL	11,481
Goodwill - Tax Deductible	11,481
Ficus
Business Acquisition
GOODWILL	8,889
Goodwill - Tax Deductible	8,889
Boxpack Packaging
Business Acquisition
GOODWILL	1,978
Goodwill - Tax Deductible	4,672
Shelter Products
Business Acquisition
GOODWILL	2,020
Goodwill - Tax Deductible	4,039
Endurable Building Products
Business Acquisition
GOODWILL	2,482
Goodwill - Tax Deductible	7,099
Walnut Hollow Farm, Inc.
Business Acquisition
GOODWILL	263
Goodwill - Tax Deductible	1,526
J. C. Gilmore Pty Ltd
Business Acquisition
GOODWILL	1,938
Goodwill - Tax Deductible	3,876
PalletOne
Business Acquisition
GOODWILL	44,378
Goodwill - Tax Deductible	79,917
Atlantic Prefab
Business Acquisition
GOODWILL	1,356
Goodwill - Tax Deductible	3,543
Exterior Designs
Business Acquisition
GOODWILL	2,241
Goodwill - Tax Deductible	5,740
Patriot Building Systems
Business Acquisition
GOODWILL	1,036
Goodwill - Tax Deductible	2,640
FRCT
Business Acquisition
GOODWILL	1,962
Goodwill - Tax Deductible	5,222
Enwrap
Business Acquisition
GOODWILL	3,705
Goodwill - Tax Deductible	6,820
T&R Lumber Company
Business Acquisition
GOODWILL	4,258
Goodwill - Tax Deductible	12,458
Quest Design
Business Acquisition
GOODWILL	8,041
Goodwill - Tax Deductible	20,262
Non-compete agreements | Atlantic Prefab
Business Acquisition
Intangible assets other than goodwill	417
Non-compete agreements | Exterior Designs
Business Acquisition
Intangible assets other than goodwill	667
Non-compete agreements | Patriot Building Systems
Business Acquisition
Intangible assets other than goodwill	306
Non-compete agreements | FRCT
Business Acquisition
Intangible assets other than goodwill	1,090
Non-compete agreements | Enwrap
Business Acquisition
Intangible assets other than goodwill	790
Non-compete agreements | T&R Lumber Company
Business Acquisition
Intangible assets other than goodwill	600
Patents | Enwrap
Business Acquisition
Intangible assets other than goodwill	1,293
Customer relationships | Boxpack Packaging
Business Acquisition
Intangible assets other than goodwill	2,694
Customer relationships | Shelter Products
Business Acquisition
Intangible assets other than goodwill	2,019
Customer relationships | Endurable Building Products
Business Acquisition
Intangible assets other than goodwill	4,617
Customer relationships | Walnut Hollow Farm, Inc.
Business Acquisition
Intangible assets other than goodwill	1,263
Customer relationships | J. C. Gilmore Pty Ltd
Business Acquisition
Intangible assets other than goodwill	1,938
Customer relationships | PalletOne
Business Acquisition
Intangible assets other than goodwill	18,089
Customer relationships | Atlantic Prefab
Business Acquisition
Intangible assets other than goodwill	1,620
Customer relationships | Exterior Designs
Business Acquisition
Intangible assets other than goodwill	2,592
Customer relationships | Patriot Building Systems
Business Acquisition
Intangible assets other than goodwill	1,188
Customer relationships | FRCT
Business Acquisition
Intangible assets other than goodwill	1,960
Customer relationships | Enwrap
Business Acquisition
Intangible assets other than goodwill	558
Customer relationships | T&R Lumber Company
Business Acquisition
Intangible assets other than goodwill	5,000
Customer relationships | Quest Design
Business Acquisition
Intangible assets other than goodwill	10,318
Tradename | PalletOne
Business Acquisition
Intangible assets other than goodwill	17,450
Tradename | Atlantic Prefab
Business Acquisition
Intangible assets other than goodwill	150
Tradename | Exterior Designs
Business Acquisition
Intangible assets other than goodwill	240
Tradename | Patriot Building Systems
Business Acquisition
Intangible assets other than goodwill	110
Tradename | FRCT
Business Acquisition
Intangible assets other than goodwill	210
Tradename | Enwrap
Business Acquisition
Intangible assets other than goodwill	474
Tradename | T&R Lumber Company
Business Acquisition
Intangible assets other than goodwill	2,600
Tradename | Quest Design
Business Acquisition
Intangible assets other than goodwill	$ 1,903

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GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Goodwill impairment		$ 11,485
Indefinite-lived intangible assets	$ 7,369	7,401
Amortization of intangibles	$ 13,948	$ 8,716	$ 6,325

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GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Reporting Segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020
Goodwill
Goodwill, Beginning Balance	$ 252,193	$ 229,536
Acquisitions	74,503	33,535
Purchase Accounting Adjustments	(10,680)	204
Impairments		(11,485)
Foreign Exchange, Net	(978)	403
Goodwill, Ending Balance	315,038	252,193
Retail
Goodwill
Goodwill, Beginning Balance	61,943	58,098
Acquisitions	13,115	3,643
Purchase Accounting Adjustments	(1,682)	202
Goodwill, Ending Balance	73,376	61,943
Industrial
Goodwill
Goodwill, Beginning Balance	87,827	81,276
Acquisitions	43,006	6,549
Purchase Accounting Adjustments	(2,292)	2
Goodwill, Ending Balance	128,541	87,827
Construction
Goodwill
Goodwill, Beginning Balance	90,729	82,911
Acquisitions	4,502	18,902
Purchase Accounting Adjustments	(6,228)
Impairments		(11,485)
Foreign Exchange, Net	(3)	401
Goodwill, Ending Balance	89,000	90,729
Construction | Commercial
Goodwill
Impairments		(11,500)
All Other
Goodwill
Goodwill, Beginning Balance	11,694	7,251
Acquisitions	13,880	4,441
Purchase Accounting Adjustments	(478)
Foreign Exchange, Net	(975)	2
Goodwill, Ending Balance	$ 24,121	$ 11,694

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GOODWILL AND OTHER INTANGIBLE ASSETS - Included in Other Amortizable Intangible Assets (Details) - USD ($) $ in Thousands	Dec. 25, 2021	Dec. 26, 2020
Finite-Lived Intangible Assets
Assets	$ 148,809	$ 99,268
Accumulated Amortization	(39,792)	(27,016)
Net Value	109,017	72,252
Non-compete agreements
Finite-Lived Intangible Assets
Assets	8,490	4,847
Accumulated Amortization	(4,160)	(2,728)
Net Value	4,330	2,119
Customer relationships
Finite-Lived Intangible Assets
Assets	101,158	80,343
Accumulated Amortization	(25,012)	(17,021)
Net Value	76,146	63,322
Licensing agreements
Finite-Lived Intangible Assets
Assets	4,589	4,589
Accumulated Amortization	(4,589)	(4,589)
Patents
Finite-Lived Intangible Assets
Assets	3,221	965
Accumulated Amortization	(1,137)	(509)
Net Value	2,084	456
Tradename
Finite-Lived Intangible Assets
Assets	30,392	8,019
Accumulated Amortization	(4,599)	(2,123)
Net Value	25,793	5,896
Software
Finite-Lived Intangible Assets
Assets	959	505
Accumulated Amortization	(295)	(46)
Net Value	$ 664	$ 459

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GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Useful Lives of Intangible Assets (Details)	12 Months Ended
	Dec. 25, 2021
Non-compete agreements
Acquired Finite-Lived Intangible Assets
Weighted average amortization period	7 years 9 months 18 days
Customer relationships
Acquired Finite-Lived Intangible Assets
Weighted average amortization period	9 years 8 months 12 days
Licensing agreements
Acquired Finite-Lived Intangible Assets
Estimated useful life	10 years
Weighted average amortization period	10 years
Patents
Acquired Finite-Lived Intangible Assets
Estimated useful life	10 years
Weighted average amortization period	10 years
Tradename
Acquired Finite-Lived Intangible Assets
Weighted average amortization period	11 years
Software
Acquired Finite-Lived Intangible Assets
Weighted average amortization period	3 years 6 months
Minimum | Non-compete agreements
Acquired Finite-Lived Intangible Assets
Estimated useful life	3 years
Minimum | Customer relationships
Acquired Finite-Lived Intangible Assets
Estimated useful life	5 years
Minimum | Tradename
Acquired Finite-Lived Intangible Assets
Estimated useful life	5 years
Minimum | Software
Acquired Finite-Lived Intangible Assets
Estimated useful life	3 years
Maximum | Non-compete agreements
Acquired Finite-Lived Intangible Assets
Estimated useful life	15 years
Maximum | Customer relationships
Acquired Finite-Lived Intangible Assets
Estimated useful life	15 years
Maximum | Tradename
Acquired Finite-Lived Intangible Assets
Estimated useful life	15 years
Maximum | Software
Acquired Finite-Lived Intangible Assets
Estimated useful life	5 years

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GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense for Intangibles (Details) - USD ($) $ in Thousands	Dec. 25, 2021	Dec. 26, 2020
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity
2022	$ 13,734
2023	12,878
2024	12,409
2025	11,901
2026	10,944
Thereafter	47,151
Net Value	$ 109,017	$ 72,252

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DEBT - Narrative (Details) - USD ($) $ in Millions		12 Months Ended
	Nov. 01, 2018	Dec. 25, 2021	Feb. 28, 2021	Feb. 27, 2021	Dec. 26, 2020	Aug. 10, 2020
Debt
Outstanding letters of credit		$ 54.2			$ 41.0
Fair value of long-term debt including current portion		334.6
Difference between fair value and carrying value of debt		14.3
Revolving Credit Facility
Debt
Term of debt	5 years
Maximum borrowing capacity	$ 375.0		$ 550.0	$ 375.0
Outstanding letters of credit	40.0
Outstanding letters of credit that can be converted to foreign currency	$ 100.0
Remaining borrowing capacity		$ 535.1			$ 363.2
Revolving Credit Facility | Minimum
Debt
Facility fee (in hundredths)	0.125%
Revolving Credit Facility | Maximum
Debt
Facility fee (in hundredths)	0.30%
Series 2018 C Senior Notes | Senior Notes
Debt
Interest rate (in hundredths)		4.20%			4.20%
Series 2018 D Senior Notes | Senior Notes
Debt
Interest rate (in hundredths)		4.27%			4.27%
Series 2020 E Senior Notes | Senior Notes
Debt
Interest rate (in hundredths)		3.04%				3.04%
Debt						$ 50.0
Series 2020 F Senior Notes | Senior Notes
Debt
Interest rate (in hundredths)		3.08%				3.08%
Debt						$ 50.0
Series 2020 G Senior Notes | Senior Notes
Debt
Interest rate (in hundredths)		3.15%				3.15%
Debt						$ 50.0
Series 2012 Senior Notes Tranche A | Senior Notes
Debt
Interest rate (in hundredths)		3.89%			3.89%
Series 2012 Senior Notes Tranche B | Senior Notes
Debt
Interest rate (in hundredths)		3.98%			3.98%
Letter of Credit
Debt
Interest rate (in hundredths)		1.125%
Term of debt		1 year
Letter of Credit | Industrial Development Revenue Bonds
Debt
Outstanding letters of credit		$ 7.1

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DEBT - Long-term Debt Obligations (Details) - USD ($) $ in Thousands	Dec. 25, 2021	Feb. 28, 2021	Feb. 27, 2021	Dec. 26, 2020	Aug. 10, 2020	Nov. 01, 2018
Debt
Total	$ 320,362			$ 311,853
Less current portion	(42,683)			(100)
Less debt issuance costs	(112)			(146)
Long-term portion	277,567			311,607
Finance Leases and Foreign Affiliate Debt
Debt
Total	5,544			138
Senior Notes | Series 2020 E Senior Notes
Debt
Total	$ 50,000			50,000
Interest rate (in hundredths)	3.04%				3.04%
Senior Notes | Series 2020 F Senior Notes
Debt
Total	$ 50,000			50,000
Interest rate (in hundredths)	3.08%				3.08%
Senior Notes | Series 2020 G Senior Notes
Debt
Total	$ 50,000			50,000
Interest rate (in hundredths)	3.15%				3.15%
Senior Notes | Series 2018 C Senior Notes
Debt
Total	$ 40,000			$ 40,000
Interest rate (in hundredths)	4.20%			4.20%
Senior Notes | Series 2018 D Senior Notes
Debt
Total	$ 35,000			$ 35,000
Interest rate (in hundredths)	4.27%			4.27%
Senior Notes | Series 2012 Senior Notes Tranche A
Debt
Total	$ 35,000			$ 35,000
Interest rate (in hundredths)	3.89%			3.89%
Senior Notes | Series 2012 Senior Notes Tranche B
Debt
Total	$ 40,000			$ 40,000
Interest rate (in hundredths)	3.98%			3.98%
Revolving Credit Facility
Debt
Maximum borrowing capacity		$ 550,000	$ 375,000			$ 375,000
Revolving Credit Facility | Domestic and Foreign Borrowings
Debt
Total	$ 7,800			$ 4,700
Revolving Credit Facility | Foreign Affiliate Debt
Debt
Total	$ 7,818			$ 4,715
Interest rate at period end (in hundredths)	1.06%			1.125%
Corporate Debt Securities | Series 1999 Industrial Development Revenue Bonds
Debt
Total	$ 3,300			$ 3,300
Interest rate at period end (in hundredths)	0.14%			0.20%
Corporate Debt Securities | Series 2002 Industrial Development Revenue Bonds
Debt
Total	$ 3,700			$ 3,700
Interest rate at period end (in hundredths)	0.18%			0.22%

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DEBT - Principal Maturities of Long-Term Debt and Capital Lease Obligations (Details) $ in Thousands	Dec. 25, 2021 USD ($)
Principal Maturities
2022	$ 42,683
2023	8,863
2024	40,214
2026	302
Thereafter	228,300
Total	$ 320,362

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LEASES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Leases
Retained earnings	$ 1,678,121	$ 1,182,680
Right-of-use assets	96,703	77,245
Operating lease liability	$ 99,787
Lessee, Operating Lease, Existence of Option to Extend	true
Rent expense	$ 40,100	$ 28,400	$ 29,900
Operating lease weighted average remaining term	7 years 3 months 29 days	6 years 10 months 2 days
Operating lease weighted average discount rate	2.87%	3.12%
Lease costs
Operating lease cost	$ 30,054	$ 21,594
Short-term lease cost	5,264	2,863
Variable lease cost	4,761	3,985
Sublease Income	3,109	1,013
Total lease cost	36,970	27,429
Cash paid - operation leases	27,400	$ 20,000
Right-of-use assets obtained in exchange for new operating leases	46,700		$ 12,800
Future minimum payments
2022	26,378
2023	21,040
2024	15,842
2025	13,164
2026	11,140
Thereafter	27,123
Total minimum lease payments	114,687
Less present value discount	(14,900)
Total lease liability	$ 99,787
Minimum
Leases
Length of lease (in years)	1 year
Renewal options of lease	5 years
Minimum | Motor vehicles
Leases
Length of lease (in years)	1 year
Minimum | Equipment
Leases
Length of lease (in years)	1 year
Minimum | Aircraft
Leases
Length of lease (in years)	1 year
Maximum
Leases
Length of lease (in years)	10 years
Renewal options of lease	15 years
Maximum | Motor vehicles
Leases
Length of lease (in years)	10 years
Maximum | Equipment
Leases
Length of lease (in years)	10 years
Maximum | Aircraft
Leases
Length of lease (in years)	10 years

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DEFERRED COMPENSATION (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 28, 2019	Dec. 25, 2021	Dec. 26, 2020
Deferred compensation
Deferred compensation liability		$ 200	$ 200
Increase in investment in life insurance contracts	$ 15,253
Liabilities related to Plan		42,100	36,600
Other Assets
Deferred compensation
Investment in life insurance contracts		12,700	13,300
Assets held by the Plan		$ 700	$ 600

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COMMON STOCK (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019	Feb. 15, 2022
Common stock
Granted (in shares)	560,516	348,016	318,496
Share-based compensation expense	$ 11.2	$ 4.0	$ 4.0
Income tax benefit from share-based compensation	2.7	1.0	0.8
Cash received from option exercises and share issuances under plans	$ 2.1	$ 1.4	1.1
Stock Repurchase Program [Abstract]
Repurchase of shares (in shares)	0	756,397
Subsequent Event
Stock Repurchase Program [Abstract]
Additional shares authorized for repurchase (in shares)				1,500,000
Cumulative total authorized shares available for repurchase (in shares)				2,600,000
Stock Purchase Plan
Common stock
Discount rate from fair market value on purchase date (in hundredths)	85.00%
Stock Retainer Plan
Common stock
Multiplier of retainer fee (in hundredths)	110.00%
Stock Retainer Plan expense	$ 1.7	$ 1.8	1.8
Stock Options
Common stock
Unrecognized compensation expense of stock options	0.0	0.0	$ 0.0
Bonus Awards
Common stock
Amount of grants	$ 60.0
Granted (in shares)	751,978
Share-based compensation expense	$ 11.5	$ 4.0
Bonus Awards | Awards with three year vesting
Common stock
Vesting period (in years)	3 years
Bonus Awards | Awards with five year vesting
Common stock
Vesting period (in years)	5 years
Bonus Awards | Awards with eight year vesting
Common stock
Vesting period (in years)	8 years
Performance Shares
Common stock
Amount of grants	$ 2.3
Granted (in shares)	28,866
Vesting period (in years)	3 years

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COMMON STOCK - Common Stock Issuances (Details) - $ / shares	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020
Common Stock
Forfeitures		(9,000)
Repurchase of common stock	0	756,397
Stock Purchase Plan
Common Stock
Common stock issued	33,000	35,000
Average Share Price
Common stock issued (dollars per share)	$ 75.18	$ 46.71
Stock Gift Program
Common Stock
Common stock issued	2,000	3,000
Average Share Price
Common stock issued (dollars per share)	$ 78.37	$ 48.10
Stock Retainer Plan
Common Stock
Common stock issued	5,000	46,000
Average Share Price
Common stock issued (dollars per share)	$ 72.66	$ 25.31
Bonus Plan
Common Stock
Common stock issued	487,000	271,000
Average Share Price
Common stock issued (dollars per share)	$ 59.56	$ 47.52
Executive Stock Grants Plan
Common Stock
Common stock issued	77,000	79,000
Average Share Price
Common stock issued (dollars per share)	$ 60.24	$ 47.60
Deferred Compensation Plans
Common Stock
Common stock issued	117,000	128,000
Average Share Price
Common stock issued (dollars per share)	$ 64.14	$ 53.79
Stock grant programs
Common Stock
Forfeitures	(24,000)
Common stock issued, net of forfeitures	547,000	390,000
Average Share Price
Common stock issued (dollars per share)	$ 59.84	$ 44.96

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COMMON STOCK - Nonvested Restricted Shares Awards (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019	Dec. 29, 2018
Restricted Awards
Nonvested, beginning balance (in shares)	1,363,794	1,202,895	1,160,079
Granted (in shares)	560,516	348,016	318,496
Vested (in shares)	(274,271)	(177,790)	(224,894)
Forfeited (in shares)	(23,007)	(9,327)	(50,786)
Nonvested, ending balance (in shares)	1,627,032	1,363,794	1,202,895	1,160,079
Weighted Average Grant Date Fair Value
Nonvested, beginning balance (in dollars per share)	$ 35.14	$ 29.68	$ 23.32
Granted (in dollars per share)	60.24	47.60	32.60
Vested (in dollars per share)	26.50	22.69	23.42
Forfeited (in dollars per share)	39.68	33.46	24.18
Nonvested, ending balance (in dollars per share)	$ 45.23	$ 35.14	$ 29.68	$ 23.32
Unrecognized Compensation Expense
Nonvested restricted awards, unrecognized compensation expense	$ 6.6	$ 6.3	$ 7.9	$ 7.6
Nonvested restricted awards, weighted-average period to recognize expense	5 months 4 days	7 months 13 days	10 months 9 days	1 year 1 month 13 days

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RETIREMENT PLANS (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Defined Benefit Plan Disclosure [Line Items]
Employer matching contribution, percent (in hundredths)	25.00%	25.00%	25.00%
Defined contribution plan, cost recognized	$ 9.2	$ 7.2	$ 6.5
Additional matching contributions	$ 3.7	2.9	$ 2.6
Maximum annual contribution per employee (in hundredths)	6.00%
Number of years of service with the Company	20 years
Number of years of service with the Company as on officer	10 years
Other Liabilities
Defined Benefit Plan Disclosure [Line Items]
Liabilities related to Plan	$ 13.1	$ 11.8

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INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Currently Payable:
Federal	$ 115,077	$ 59,055	$ 35,267
State and local	30,441	16,709	10,071
Foreign	21,095	8,601	5,834
Total current payable	166,613	84,365	51,172
Net Deferred:
Federal	6,242	2,292	6,895
State and local	118	(1,518)	805
Foreign	999	1,962	(602)
Total net deferred	7,359	2,736	7,098
Income Tax Expense (Benefit), Total	$ 173,972	$ 87,101	$ 58,270

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INCOME TAXES - Components of Earnings before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Components of earnings before income taxes [Abstract]
U.S.	$ 645,316	$ 308,167	$ 220,532
Foreign	81,020	32,816	20,142
Total.	$ 726,336	$ 340,983	$ 240,674

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INCOME TAXES - Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Effective income tax rate reconciliation
Statutory federal income tax rate	21.00%	21.00%	21.00%
State and local taxes (net of federal benefits)	3.30%	3.40%	3.90%
Effect of noncontrolling owned interest in earnings of partnerships			(0.10%)
Tax credits, including foreign tax credit	(0.60%)	(0.90%)	(1.30%)
Change in uncertain tax positions reserve	(0.10%)	(0.10%)	(0.10%)
Other permanent differences	(0.40%)	0.60%	0.50%
Other, net	0.70%	1.50%	0.30%
Effective income tax rate	23.90%	25.50%	24.20%

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INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 25, 2021	Dec. 26, 2020
Deferred Tax Assets
Employee benefits	$ 27,543	$ 23,236
Lease liability	24,627	19,376
Net operating loss carryforwards	5,502	6,463
Foreign subsidiary capital loss carryforward	527	527
Other tax credits	450	391
Inventory	2,007	1,633
Reserves on receivables	1,446	1,630
Accrued expenses	5,735	3,071
Other, net	5,233	8,483
Gross deferred income tax assets	73,070	64,810
Valuation allowance	(3,952)	(4,044)
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent, Total	69,118	60,766
Deferred Tax Liabilities
Depreciation	(64,387)	(41,403)
Intangibles	(38,367)	(22,840)
Right of use assets	(23,866)	(19,376)
Deferred income tax liabilities	(126,620)	(83,619)
Net deferred income tax liability	$ (57,502)	$ (22,853)

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INCOME TAXES - NOL and Credit Carryforwards (Details) $ in Thousands	Dec. 25, 2021 USD ($)
Operating Loss and Credit Carryforwards
Valuation allowance - NOL carryforwards	$ 3,400
Domestic Tax Authority
Operating Loss and Credit Carryforwards
Net Operating Losses	790
Domestic Tax Authority | 2037 - 2041
Operating Loss and Credit Carryforwards
Net Operating Losses	790
State
Operating Loss and Credit Carryforwards
Net Operating Losses	2,352
Tax Credits	450
State | 2027 - 2031
Operating Loss and Credit Carryforwards
Net Operating Losses	436
State | 2036 - 2036
Operating Loss and Credit Carryforwards
Net Operating Losses	670
Tax Credits	450
State | 2037 - 2041
Operating Loss and Credit Carryforwards
Net Operating Losses	808
State | Thereafter
Operating Loss and Credit Carryforwards
Net Operating Losses	438
Foreign Country
Operating Loss and Credit Carryforwards
Net Operating Losses	2,360
Foreign Country | 2022 - 2026
Operating Loss and Credit Carryforwards
Net Operating Losses	536
Foreign Country | 2027 - 2031
Operating Loss and Credit Carryforwards
Net Operating Losses	1,424
Foreign Country | 2036 - 2036
Operating Loss and Credit Carryforwards
Net Operating Losses	106
Foreign Country | Thereafter
Operating Loss and Credit Carryforwards
Net Operating Losses	294
Federal, state and foreign
Operating Loss and Credit Carryforwards
Net Operating Losses	5,500
Capital Loss Carryforward
Operating Loss and Credit Carryforwards
Valuation allowance - NOL carryforwards	500
Wholly-owned subsidiary | Capital Loss Carryforward
Operating Loss and Credit Carryforwards
Valuation allowance - NOL carryforwards	$ 500

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ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Reconciliation of beginning and ending amount of unrecognized tax benefits [Roll Forward]
Gross unrecognized tax benefits beginning of year	$ 3,892	$ 4,166	$ 4,378
Increase in tax positions for prior years	437
Decrease in tax positions for prior years		(82)	(129)
Increase in tax positions for current year	839	730	768
Lapse in statute of limitations	(1,565)	(922)	(851)
Gross unrecognized tax benefits end of year	3,603	3,892	4,166
Income tax penalties and interest accrued	500	$ 500	$ 500
Increase in unrecognized tax benefits is reasonably possible	$ 1,100

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COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020
Long-term commitment
Outstanding purchase commitments on capital projects	$ 52.7
Surety Bonds and Letters of Credit
Outstanding letters of credit	54.2	$ 41.0
Open Projects
Surety Bonds and Letters of Credit
Payment and performance bonds outstanding	31.5
Completed Projects
Surety Bonds and Letters of Credit
Payment and performance bonds outstanding	10.7
Insurance Contracts
Surety Bonds and Letters of Credit
Outstanding letters of credit	47.1
Revenue Bonds
Surety Bonds and Letters of Credit
Outstanding letters of credit	$ 7.1

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SEGMENT REPORTING - NARRATIVE (Details) - Total Sales - Customer Concentration - customer	12 Months Ended
	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Two Customers
Concentration risk
Number of customers	2	2	2
Home Depot
Concentration risk
Percent of sales	16.00%	24.00%	19.00%
Lowes
Concentration risk
Percent of sales	10.00%	4.00%	4.00%

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SEGMENT REPORTING - Information By Segment (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 25, 2021	Sep. 25, 2021	Jun. 26, 2021	Mar. 27, 2021	Dec. 26, 2020	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Segment Reporting
Net sales	$ 2,016,805	$ 2,093,784	$ 2,700,541	$ 1,825,004	$ 1,393,708	$ 1,486,227	$ 1,242,001	$ 1,032,062	$ 8,636,134	$ 5,153,998	$ 4,416,009
Interest expense									13,814	9,311	8,700
Amortization expense									13,948	8,716	6,325
Depreciation									84,184	63,964	60,494
Segment earnings before income taxes									726,336	340,983	240,674
Segment assets	3,245,271				2,404,891				3,245,271	2,404,891	1,889,477
Capital expenditures									151,166	89,182	84,933
Intersegment net sales
Segment Reporting
Net sales									(838,254)	(540,039)	(437,257)
Corporate
Segment Reporting
Net sales									8,748	1,981	723
Interest expense									13,519	9,197	8,479
Amortization expense									214	46
Depreciation									25,765	23,384	22,116
Segment earnings before income taxes									(8,555)	(5,236)	(8,379)
Segment assets	579,890				770,112				579,890	770,112	450,299
Capital expenditures									40,622	32,604	31,050
Retail | Operating Segments
Segment Reporting
Net sales									3,418,337	2,167,122	1,498,710
Interest expense									98	2
Amortization expense									2,780	1,482	1,380
Depreciation									16,955	11,675	11,041
Segment earnings before income taxes									124,790	155,364	61,708
Segment assets	844,189				510,464				844,189	510,464	402,221
Capital expenditures									40,408	16,277	15,502
Retail | Intersegment net sales
Segment Reporting
Net sales									214,400	142,839	135,705
Industrial | Operating Segments
Segment Reporting
Net sales									2,148,142	1,072,117	1,085,635
Interest expense									12	22	108
Amortization expense									6,093	4,159	3,034
Depreciation									26,219	15,163	14,340
Segment earnings before income taxes									264,958	83,430	82,913
Segment assets	741,672				416,487				741,672	416,487	377,329
Capital expenditures									42,652	21,141	20,134
Industrial | Intersegment net sales
Segment Reporting
Net sales									85,954	45,217	45,010
Construction | Operating Segments
Segment Reporting
Net sales									2,698,434	1,695,684	1,637,156
Interest expense									1		16
Amortization expense									3,525	2,152	1,164
Depreciation									13,151	12,123	11,465
Segment earnings before income taxes									264,238	69,092	82,407
Segment assets	736,157				510,972				736,157	510,972	522,638
Capital expenditures									22,344	16,902	16,097
Construction | Intersegment net sales
Segment Reporting
Net sales									82,026	68,294	56,116
All Other | Operating Segments
Segment Reporting
Net sales									362,473	217,094	193,785
Interest expense									184	90	97
Amortization expense									1,336	877	747
Depreciation									2,094	1,619	1,532
Segment earnings before income taxes									80,905	38,333	22,025
Segment assets	$ 343,363				$ 196,856				343,363	196,856	136,990
Capital expenditures									5,140	2,258	2,150
All Other | Intersegment net sales
Segment Reporting
Net sales									$ 455,874	$ 283,689	$ 200,426

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SEGMENT REPORTING - Information Regarding Principal Geographic Areas (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 25, 2021	Sep. 25, 2021	Jun. 26, 2021	Mar. 27, 2021	Dec. 26, 2020	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Revenues and Long-Lived Assets
Net sales	$ 2,016,805	$ 2,093,784	$ 2,700,541	$ 1,825,004	$ 1,393,708	$ 1,486,227	$ 1,242,001	$ 1,032,062	$ 8,636,134	$ 5,153,998	$ 4,416,009
Long-Lived Tangible Assets	734,630				514,705				734,630	514,705	506,483
United States
Revenues and Long-Lived Assets
Net sales									8,395,737	5,022,014	4,308,618
Long-Lived Tangible Assets	679,757				478,325				679,757	478,325	469,605
Foreign
Revenues and Long-Lived Assets
Net sales									240,397	131,984	107,391
Long-Lived Tangible Assets	$ 54,873				$ 36,380				$ 54,873	$ 36,380	$ 36,878

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SEGMENT REPORTING - Gross Sales by Major Product Classification (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 25, 2021	Sep. 25, 2021	Jun. 26, 2021	Mar. 27, 2021	Dec. 26, 2020	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
Revenue
Net sales	$ 2,016,805	$ 2,093,784	$ 2,700,541	$ 1,825,004	$ 1,393,708	$ 1,486,227	$ 1,242,001	$ 1,032,062	$ 8,636,134	$ 5,153,998	$ 4,416,009
Value-Added
Revenue
Portion of total net sales (as a percent)	59.70%				64.30%				59.70%	64.30%	69.30%
Commodity-Based Sales
Revenue
Portion of total net sales (as a percent)	40.30%				35.70%				40.30%	35.70%	30.70%
Intersegment net sales
Revenue
Net sales									$ (838,254)	$ (540,039)	$ (437,257)
Corporate
Revenue
Net sales									$ 8,748	$ 1,981	$ 723
Retail | Value-Added
Revenue
Portion of total net sales (as a percent)	43.20%				53.80%				43.20%	53.80%	57.80%
Retail | Commodity-Based Sales
Revenue
Portion of total net sales (as a percent)	56.80%				46.20%				56.80%	46.20%	42.20%
Retail | Operating Segments
Revenue
Net sales									$ 3,418,337	$ 2,167,122	$ 1,498,710
Retail | Operating Segments | Deckorators
Revenue
Net sales									248,765	219,930	185,221
Retail | Operating Segments | Prowood
Revenue
Net sales									1,349,901	1,215,201	786,720
Retail | Operating Segments | Outdoor Essentials
Revenue
Net sales									392,826	299,684	227,767
Retail | Operating Segments | Sunbelt
Revenue
Net sales									773,909
Retail | Operating Segments | UFP Edge
Revenue
Net sales									148,927	114,987	95,608
Retail | Operating Segments | Handprint
Revenue
Net sales									101,090	88,351	52,553
Retail | Operating Segments | Retail Building Materials
Revenue
Net sales									395,894	225,253	149,153
Retail | Operating Segments | Other Retail
Revenue
Net sales									7,025	3,716	1,688
Retail | Intersegment net sales
Revenue
Net sales									$ 214,400	$ 142,839	$ 135,705
Industrial | Value-Added
Revenue
Portion of total net sales (as a percent)	67.70%				64.70%				67.70%	64.70%	66.20%
Industrial | Commodity-Based Sales
Revenue
Portion of total net sales (as a percent)	32.30%				35.30%				32.30%	35.30%	33.80%
Industrial | Operating Segments
Revenue
Net sales									$ 2,148,142	$ 1,072,117	$ 1,085,635
Industrial | Operating Segments | North Industrial
Revenue
Net sales									615,092	385,132	376,515
Industrial | Operating Segments | Southeast Industrial
Revenue
Net sales									395,069	229,316	255,419
Industrial | Operating Segments | Southwest Industrial
Revenue
Net sales									400,515	238,643	241,774
Industrial | Operating Segments | West Industrial
Revenue
Net sales									363,300	206,022	197,686
Industrial | Operating Segments | PalletOne
Revenue
Net sales									355,347
Industrial | Operating Segments | Protective Packaging
Revenue
Net sales									18,819	13,004	14,241
Industrial | Intersegment net sales
Revenue
Net sales									$ 85,954	$ 45,217	$ 45,010
Construction | Value-Added
Revenue
Portion of total net sales (as a percent)	73.00%				76.30%				73.00%	76.30%	81.40%
Construction | Commodity-Based Sales
Revenue
Portion of total net sales (as a percent)	27.00%				23.70%				27.00%	23.70%	18.60%
Construction | Operating Segments
Revenue
Net sales									$ 2,698,434	$ 1,695,684	$ 1,637,156
Construction | Operating Segments | Factory Built
Revenue
Net sales									1,098,905	597,017	479,927
Construction | Operating Segments | Site Built
Revenue
Net sales									1,190,393	725,899	708,767
Construction | Operating Segments | Commercial
Revenue
Net sales									259,360	221,988	290,785
Construction | Operating Segments | Concrete Forming
Revenue
Net sales									149,776	150,780	157,677
Construction | Intersegment net sales
Revenue
Net sales									82,026	68,294	56,116
All Other | Operating Segments
Revenue
Net sales									362,473	217,094	193,785
All Other | Intersegment net sales
Revenue
Net sales									$ 455,874	$ 283,689	$ 200,426
All Other and Corporate | Value-Added
Revenue
Portion of total net sales (as a percent)	74.90%				75.60%				74.90%	75.60%	75.80%
All Other and Corporate | Commodity-Based Sales
Revenue
Portion of total net sales (as a percent)	25.10%				24.40%				25.10%	24.40%	24.20%

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QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 25, 2021	Sep. 25, 2021	Jun. 26, 2021	Mar. 27, 2021	Dec. 26, 2020	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Dec. 25, 2021	Dec. 26, 2020	Dec. 28, 2019
NET SALES	$ 2,016,805	$ 2,093,784	$ 2,700,541	$ 1,825,004	$ 1,393,708	$ 1,486,227	$ 1,242,001	$ 1,032,062	$ 8,636,134	$ 5,153,998	$ 4,416,009
Gross profit	371,564	327,555	421,294	286,554	187,055	241,074	204,931	167,236	1,406,967	800,296	685,518
NET EARNINGS	147,006	125,747	175,360	104,251	64,757	78,861	69,694	40,570	552,364	253,882	182,404
Net earnings attributable to controlling interest	$ 137,906	$ 121,041	$ 173,382	$ 103,311	$ 62,952	$ 77,204	$ 66,463	$ 40,159	$ 535,640	$ 246,778	$ 179,650
EARNINGS PER SHARE - BASIC (USD per share)	$ 2.21	$ 1.94	$ 2.79	$ 1.67	$ 1.02	$ 1.25	$ 1.08	$ 0.65	$ 8.61	$ 4.00	$ 2.91
EARNINGS PER SHARE - DILUTED (USD per share)	$ 2.21	$ 1.94	$ 2.78	$ 1.67	$ 1.02	$ 1.25	$ 1.08	$ 0.65	$ 8.59	$ 4.00	$ 2.91
Minimum
Length of fiscal quarter									91 days	91 days

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SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) shares in Millions, $ in Millions	Dec. 27, 2021	Feb. 15, 2022
Subsequent Event
Additional shares authorized for repurchase (in shares)		1.5
Cumulative total authorized shares available for repurchase (in shares)		2.6
Ultra
Subsequent Event
Percentage of stock purchase (as a percent)	100.00%
Purchase Price	$ 26.8