Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2017 | Feb. 03, 2018 | Jun. 30, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | UNIVERSAL FOREST PRODUCTS INC | ||
Entity Central Index Key | 912,767 | ||
Current Fiscal Year End Date | --12-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding (in shares) | 61,210,113 | ||
Entity Public Float | $ 1,676,557,004 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 30, 2017 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 28,339 | $ 34,091 |
Investments | 11,269 | 10,348 |
Restricted cash | 477 | 398 |
Accounts receivable, net | 327,751 | 282,253 |
Inventories: | ||
Raw materials | 234,354 | 198,954 |
Finished goods | 225,954 | 198,273 |
Total inventories | 460,308 | 397,227 |
Refundable income taxes | 7,228 | 11,459 |
Other current assets | 28,115 | 20,662 |
TOTAL CURRENT ASSETS | 863,487 | 756,438 |
DEFERRED INCOME TAXES | 1,865 | 1,546 |
RESTRICTED INVESTMENTS | 8,359 | |
OTHER ASSETS | 7,368 | 8,617 |
GOODWILL | 212,644 | 198,535 |
INDEFINITE-LIVED INTANGIBLE ASSETS | 7,415 | 2,340 |
OTHER INTANGIBLE ASSETS, NET | 34,910 | 26,731 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land and improvements | 134,916 | 124,316 |
Buildings and improvements | 213,384 | 204,586 |
Machinery and equipment | 372,628 | 332,397 |
Furniture and fixtures | 25,251 | 22,570 |
Construction in progress | 16,922 | 15,593 |
PROPERTY, PLANT AND EQUIPMENT,GROSS | 763,101 | 699,462 |
Less accumulated depreciation and amortization | (434,472) | (401,611) |
PROPERTY, PLANT AND EQUIPMENT, NET | 328,629 | 297,851 |
TOTAL ASSETS | 1,464,677 | 1,292,058 |
CURRENT LIABILITIES: | ||
Cash overdraft | 25,851 | 19,761 |
Accounts payable | 140,106 | 124,660 |
Accrued liabilities: | ||
Compensation and benefits | 97,556 | 92,441 |
Other | 38,404 | 32,281 |
Current portion of long-term debt | 1,329 | 2,634 |
TOTAL CURRENT LIABILITIES | 303,246 | 271,777 |
LONG-TERM DEBT | 144,674 | 109,059 |
DEFERRED INCOME TAXES | 14,079 | 20,817 |
OTHER LIABILITIES | 28,655 | 29,939 |
TOTAL LIABILITIES | 490,654 | 431,592 |
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, 61,191,888 and 61,026,207 | 61,192 | 61,026 |
Additional paid-in capital | 161,928 | 144,649 |
Retained earnings | 736,212 | 649,135 |
Accumulated other comprehensive income | 144 | (5,630) |
Total controlling interest shareholders' equity | 959,476 | 849,180 |
Noncontrolling interest | 14,547 | 11,286 |
TOTAL SHAREHOLDERS' EQUITY | 974,023 | 860,466 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,464,677 | $ 1,292,058 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 30, 2017 | Dec. 31, 2016 |
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) | 61,191,888 | 61,026,207 |
Common stock, shares outstanding (in shares) | 61,191,888 | 61,026,207 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Income Statement [Abstract] | |||
NET SALES | $ 3,941,182 | $ 3,240,493 | $ 2,887,071 |
COST OF GOODS SOLD | 3,398,356 | 2,765,903 | 2,487,167 |
GROSS PROFIT | 542,826 | 474,590 | 399,904 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 362,220 | 310,152 | 264,265 |
NET (GAIN) LOSS ON DISPOSITION OF ASSETS | (863) | 172 | |
EARNINGS FROM OPERATIONS | 181,469 | 164,438 | 135,467 |
INTEREST EXPENSE | 6,218 | 4,575 | 5,133 |
INTEREST INCOME | (731) | (541) | (294) |
EQUITY IN EARNINGS OF INVESTEE | (25) | (267) | (374) |
NON-OPERATING (INCOME)/EXPENSE | 5,462 | 3,767 | 4,465 |
EARNINGS BEFORE INCOME TAXES | 176,007 | 160,671 | 131,002 |
INCOME TAXES | 51,967 | 55,174 | 45,870 |
NET EARNINGS | 124,040 | 105,497 | 85,132 |
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST | (4,528) | (4,318) | (4,537) |
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST | $ 119,512 | $ 101,179 | $ 80,595 |
EARNINGS PER SHARE - BASIC (USD per share) | $ 1.95 | $ 1.66 | $ 1.33 |
EARNINGS PER SHARE - DILUTED (USD per share) | $ 1.94 | $ 1.65 | $ 1.33 |
OTHER COMPREHENSIVE INCOME | |||
OTHER COMPREHENSIVE GAIN (LOSS) | $ 6,130 | $ (2,703) | $ (7,257) |
COMPREHENSIVE INCOME | 130,170 | 102,794 | 77,875 |
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (4,884) | (2,660) | (3,213) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ 125,286 | $ 100,134 | $ 74,662 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Earnings | Employees Stock Notes Receivable | Noncontrolling Interest | Total |
Beginning balance at Dec. 27, 2014 | $ 59,952 | $ 122,515 | $ 502,334 | $ 1,348 | $ (455) | $ 13,866 | $ 699,560 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 80,595 | 4,537 | 85,132 | ||||
Foreign currency translation adjustment | (5,892) | (1,324) | (7,216) | ||||
Unrealized gain (loss) on investment | (41) | (41) | |||||
Noncontrolling interest associated with business acquisitions | 1,019 | 1,019 | |||||
Distributions to noncontrolling interest | (3,188) | (3,188) | |||||
Additional purchases of noncontrolling interest | (1,256) | (1,256) | |||||
Cash dividends - semiannually | (16,507) | (16,507) | |||||
Issuance of shares under employee stock plans | 91 | 984 | 1,075 | ||||
Issuance of shares under stock grant programs | 227 | 1,685 | 1,912 | ||||
Issuance of shares under deferred compensation plans | 195 | (195) | |||||
Repurchase of shares | (40) | 26 | (786) | 304 | (496) | ||
Tax benefits from non-qualified stock options exercised | 370 | 370 | |||||
Expense associated with share-based compensation arrangements | 1,846 | 1,846 | |||||
Accrued expense under deferred compensation plans | 4,048 | 4,048 | |||||
Payments received on employee stock notes receivable | $ 151 | 151 | |||||
Ending balance at Dec. 26, 2015 | 60,425 | 131,279 | 565,636 | (4,585) | 13,654 | 766,409 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 101,179 | 4,318 | 105,497 | ||||
Foreign currency translation adjustment | (1,316) | (1,658) | (2,974) | ||||
Unrealized gain (loss) on investment | 271 | 271 | |||||
Distributions to noncontrolling interest | (3,280) | (3,280) | |||||
Net purchase and dissolution of non-controlling interest | 856 | (1,748) | (892) | ||||
Cash dividends - semiannually | (17,680) | (17,680) | |||||
Issuance of shares under employee stock plans | 21 | 515 | 536 | ||||
Issuance of shares under stock grant programs | 407 | 4,890 | 5,297 | ||||
Issuance of shares under deferred compensation plans | 173 | (173) | |||||
Expense associated with share-based compensation arrangements | 2,208 | 2,208 | |||||
Accrued expense under deferred compensation plans | 5,074 | 5,074 | |||||
Ending balance at Dec. 31, 2016 | 61,026 | 144,649 | 649,135 | (5,630) | 11,286 | 860,466 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net earnings | 119,512 | 4,528 | 124,040 | ||||
Foreign currency translation adjustment | 5,070 | 356 | 5,426 | ||||
Unrealized gain (loss) on investment & foreign currency | 704 | 704 | |||||
Distributions to noncontrolling interest | (4,032) | (4,032) | |||||
Additional purchases of noncontrolling interest | 2,409 | 2,409 | |||||
Cash dividends - semiannually | (19,607) | (19,607) | |||||
Issuance of shares under employee stock plans | 24 | 637 | 661 | ||||
Issuance of shares under stock grant programs | 429 | 5,769 | 6,198 | ||||
Issuance of shares under deferred compensation plans | 159 | (159) | |||||
Repurchase of shares | (446) | 297 | (12,828) | (12,977) | |||
Tax benefits from non-qualified stock options exercised | 0 | ||||||
Expense associated with share-based compensation arrangements | 3,618 | 3,618 | |||||
Accrued expense under deferred compensation plans | 7,117 | 7,117 | |||||
Ending balance at Dec. 30, 2017 | $ 61,192 | $ 161,928 | $ 736,212 | $ 144 | $ 14,547 | $ 974,023 |
CONSOLIDATED STATEMENTS OF SHA6
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended | |||||||
Dec. 30, 2017 | Jul. 01, 2017 | Dec. 31, 2016 | Jun. 25, 2016 | Dec. 26, 2015 | Jun. 27, 2015 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Cash dividends per share (USD per share) | $ 0.170 | $ 0.150 | $ 0.150 | $ 0.140 | $ 0.140 | $ 0.133 | |||
Issuance of shares under employee stock plans (in shares) | 23,691 | 20,439 | 90,639 | ||||||
Issuance of shares under stock grant programs (in shares) | 428,622 | 407,271 | 226,812 | ||||||
Issuance of shares under deferred compensation plans (in shares) | 159,108 | 173,370 | 195,162 | ||||||
Repurchase of shares (in shares) | 445,740 | 0 | 40,839 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net earnings | $ 124,040 | $ 105,497 | $ 85,132 |
Adjustments to reconcile net earnings to net cash from operating activities: | |||
Depreciation | 48,536 | 40,823 | 37,710 |
Amortization of intangibles | 4,860 | 2,795 | 3,531 |
Expense associated with share-based and grant compensation arrangements | 3,805 | 2,335 | 1,955 |
Expense tax benefits from share-based compensation arrangements | (33) | ||
Deferred income taxes (credits) | (8,629) | 2,464 | (1,369) |
Equity in earnings of investee | (25) | (267) | (374) |
Net (gain) loss on disposition and impairment of assets | (863) | 172 | |
Changes in: | |||
Accounts receivable | (30,787) | (5,119) | (26,007) |
Inventories | (49,262) | (3,245) | 34,139 |
Accounts payable and cash overdraft | 21,159 | 11,259 | 4,798 |
Accrued liabilities and other | 23,749 | 15,978 | 29,142 |
NET CASH FROM OPERATING ACTIVITIES | 136,583 | 172,520 | 168,796 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (71,116) | (53,762) | (43,522) |
Proceeds from sale of property, plant and equipment | 2,919 | 3,126 | 2,843 |
Acquisitions, net of cash received | (60,587) | (80,077) | (2,505) |
Repayments of debt of acquiree | (92,830) | ||
Purchase and dissolution of remaining noncontrolling interest in subsidiary | (892) | (1,256) | |
Advances of notes receivable | (234) | (6,012) | (6,994) |
Collections on notes receivable | 1,509 | 7,899 | 11,446 |
Purchases of investments | (13,518) | (5,666) | (7,858) |
Proceeds from sale of investments | 5,103 | 2,568 | 1,115 |
Other | (1,735) | (2,011) | 95 |
NET CASH USED IN INVESTING ACTIVITIES | (137,659) | (227,657) | (46,636) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under revolving credit facilities | 758,287 | 131,002 | 297,711 |
Repayments under revolving credit facilities | (722,725) | (107,294) | (311,271) |
Borrowings of debt | 8,525 | ||
Repayment of debt | (13,347) | ||
Proceeds from issuance of common stock | 660 | 536 | 1,074 |
Dividends paid to shareholders | (4,032) | (3,280) | (3,188) |
Distributions to noncontrolling interest | (19,607) | (17,680) | (16,507) |
Repurchase of common stock | (12,977) | (800) | |
Other | (31) | (73) | (21) |
NET CASH FROM (USED IN) FINANCING ACTIVITIES | (5,247) | 3,211 | (33,002) |
Effect of exchange rate changes on cash | 650 | (1,927) | (1,221) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (5,673) | (53,853) | 87,937 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 34,489 | 88,342 | 405 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ 28,816 | $ 34,489 | $ 88,342 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||
Cash and cash equivalents, beginning of period | $ 34,091 | $ 87,756 | |
Restricted cash, beginning of period | 398 | 586 | $ 405 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 34,489 | 88,342 | 405 |
Cash and cash equivalents, end of period | 28,339 | 34,091 | 87,756 |
Restricted cash, end of period | 477 | 398 | 586 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | 28,816 | 34,489 | 88,342 |
SUPPLEMENTAL INFORMATION: | |||
Interest paid | 6,020 | 4,550 | 5,118 |
Income taxes paid | 56,663 | 57,311 | 42,767 |
NON-CASH INVESTING ACTIVITIES | |||
Notes receivable exchanged for property | 389 | ||
NON-CASH FINANCING ACTIVITIES: | |||
Common stock issued under deferred compensation plans | $ 5,116 | $ 4,353 | 3,461 |
Property exchanged for notes receivable | 300 | ||
Acquisition earnout adjustment prior to final purchase accounting | $ 14,195 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OPERATIONS We design, manufacture and market wood and wood-alternative products for large home centers and other retailers; structural lumber, engineered wood components, framing services, and other products for the construction market; specialty wood packaging, components, packing materials, and other wood-based products for various industries; and design, manufacture, and install customized interior fixtures used in retail and commercial structures for various markets. 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 2017, 2016, and 2015 relate to the fiscal years ended December 30, 2017, December 31, 2016, and December 26, 2015, respectively. Fiscal year 2016 was comprised of 53 weeks, which contributed an additional $ 60 million in sales in 2016 compared to fiscal years 2017 and 2015, which 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. 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. Restricted cash consists of amounts required to be held for loss funding totaling $0.5 million and $0.4 million as of December 30, 2017 and December 31, 2016, respectively. In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2016-18, “Statement of Cash Flows (Topic 230)” (ASU 2016-18). Under ASU 2016-18, an entity will be required to explain changes in the statement of cash flows during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this update should be applied using retrospective transition method to each period presented. Companies are required to adopt the new standard for fiscal years beginning after December 15, 2017. Early adoption of ASU 2016-18 is permitted, including adoption in an interim period. The Company has early adopted this standard during the first quarter of 2017. INVESTMENTS Investments are deemed to be "available for sale" and are, accordingly, carried at fair value being the quoted market value. Unrealized investment gains or losses, net of deferred taxes, are reported as a separate component of comprehensive income or loss until sold. 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, 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 30,2017: Allowance for possible losses on accounts receivable $ 2,845 $ 28,102 $ (28,523) $ 2,424 Year Ended December 31, 2016: Allowance for possible losses on accounts receivable $ 2,672 $ 28,405 $ (28,232) $ 2,845 Year Ended December 26, 2015: Allowance for possible losses on accounts receivable $ 2,390 $ 20,538 $ (20,256) $ 2,672 * 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 $ 4.8 million and $6.0 million as of December 30, 2017 and December 31, 2016, respectively. All amounts are expected to be collected within 18 months. Concentration of accounts receivable related to our largest customer totaled $55.9 million and $34.0 million as of December 30, 2017 and December 31, 2016, respectively. 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 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 $14.8 million as of December 30, 2017 and $12.2 million as of December 31, 2016. 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 capital 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 8 years 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. LEASES In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2016‑02, “Leases (Topic 842)” (ASU 2016‑02). Under ASU 2016‑02, an entity will be required to recognize assets and liabilities for the rights and obligations created by leases on the entity’s balance sheet for both finance and operating leases. For leases with a term of 12 months or less, an entity can elect to not recognize lease assets and lease liabilities and expense the lease over a straight-line basis for the term of the lease. ASU 2016‑02 will require new disclosures that depict the amount, timing, and uncertainty of cash flows pertaining to an entity’s leases. Companies are required to adopt the new standard for annual and interim periods beginning after December 15, 2018. Early adoption of ASU 2016‑02 is permitted. The FASB has tentatively decided to amend certain aspects of its new leasing standard in an attempt to provide a relief from implementation costs. Specifically, entities may elect not to restate their comparative periods in the period of adoption when transitioning to the new standard. The Company plans to continue to evaluate the effect of the new leasing guidance in 2018; therefore, the quantitative impact has not yet been determined however the Company anticipates only a balance sheet impact. GOODWILL Our annual testing date for evaluating goodwill and indefinite-lived intangible asset impairment is the first day of the Company’s fourth fiscal quarter for all reporting units. Additionally, the Company reviews various triggering events throughout the year to ensure that a mid-year impairment analysis is not 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 30, 2017 and December 31, 2016. 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 30, 2017, Ardellis had 30 such contracts in place. Reserves associated with these contracts were $3.4 million at December 30, 2017 and $2.5 million at December 31, 2016, 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 On May 28, 2014, the FASB issued ASU No. 2014‑09 (Accounting Standard Codification 606), Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company is currently finalizing its evaluation of the impact of adopting this new guidance, which is not expected to materially impact the Company's financial condition or results of operations. The five-step model has been applied to existing contracts with customers, and based upon this review, the Company does not expect the adoption of ASU 2014-09 to have a material quantitative impact on its consolidated financial statements, as the timing of revenue recognition for product sales will continue to occur at the point of shipment. Other types of revenue, such as installation and framing, which are immaterial to our total revenue, will continue to be recognized over the appropriate period of time. As required by the standard, the Company expects to make additional disclosures related to the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company will adopt this standard in the first quarter of fiscal year 2018 using the modified retrospective. Revenue is recognized at the time the product is shipped to the customer. 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. Earnings on construction contracts are reflected in operations using percentage-of-completion accounting, under either the cost to cost or units of delivery methods, depending on the nature of the business at individual operations. Under percentage-of-completion 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 percentage-of-completion 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 recognized losses to the extent that they exist. The following table presents the balances of percentage-of-completion accounts on December 30, 2017 and December 31, 2016 which are included in other current assets and other accrued liabilities, respectively (in thousands): December 30, December 31, 2017 2016 Cost and Earnings in Excess of Billings $ 5,005 $ 2,573 Billings in Excess of Cost and Earnings 4,435 4,748 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. EARNINGS PER SHARE The computation of earnings per share (“EPS”) is as follows (in thousands), which incorporate the retroactive effect of the Company’s 3 for 1 stock split: December 30, December 31, December 26, 2017 2016 2015 Numerator: Net earnings attributable to controlling interest $ 119,512 $ 101,179 $ 80,595 Adjustment for earnings allocated to non-vested restricted common stock (2,225) (1,595) (1,059) Net earnings for calculating EPS $ 117,287 $ 99,584 $ 79,536 Denominator: Weighted average shares outstanding 61,416 61,089 60,552 Adjustment for non-vested restricted common stock (1,143) (963) (795) Shares for calculating basic EPS 60,273 60,126 59,757 Effect of dilutive stock options 90 99 108 Shares for calculating diluted EPS 60,363 60,225 59,865 Net earnings per share: Basic $ 1.95 $ 1.66 $ 1.33 Diluted $ 1.94 $ 1.65 $ 1.33 No options were excluded from the computation of diluted EPS for 2017, 2016, or 2015. 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. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 30, 2017 | |
FAIR VALUE | |
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 30, 2017 December 31, 2016 Quoted Prices with Quoted Prices with Prices in Other Prices in Other Active Observable Active Observable Markets Inputs Markets Inputs (in thousands) (Level 1) (Level 2) Total (Level 1) (Level 2) Total Money market funds $ 64 $ 3,071 $ 3,135 $ 64 $ 178 $ 242 Fixed income funds 1,182 6,974 8,156 1,676 2,592 4,268 Equity securities 10,710 — 10,710 5,609 — 5,609 Mutual funds: Domestic stock funds 367 — 367 760 — 760 International stock funds 91 — 91 72 — 72 Target funds 270 — 270 235 — 235 Bond funds 209 — 209 201 — 201 Total mutual funds 937 — 937 1,268 — 1,268 Total $ 12,893 $ 10,045 $ 22,938 $ 8,617 $ 2,770 $ 11,387 Assets at fair value $ 12,893 $ 10,045 $ 22,938 $ 8,617 $ 2,770 $ 11,387 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. These funds are valued at prices quoted in an active exchange market and are included in "Cash and Cash Equivalents", "Investments", and "Other Assets". 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. The valuations of the Level 2 assets or liabilities rely on quoted prices in markets that are not active or observable inputs over the full term of the asset or liability. We do not maintain any Level 3 assets or liabilities that would be based on significant unobservable inputs. During 2017, our wholly-owned captive, Ardellis Insurance Ltd. (“Ardellis”) transferred $4.1 million in fixed income securities from its Investment Account and purchased an additional $4.1 million in fixed income securities which are held in a newly formed collateral trust account in line with regulatory requirements in the State of Michigan to allow Ardellis to act as an admitted carrier in the State. These funds are intended to safeguard the insureds of the Michigan Branch of Ardellis. The funds are classified as “Restricted Investments”. In accordance with our investment policy, our wholly-owned company, Ardellis Insurance Ltd. ("Ardellis"), maintains an investment portfolio, totaling $18.9 million as of December 30, 2017, consisting of mutual funds, domestic and international stocks, and fixed income bonds. Ardellis’ available for sale investment portfolio consists of the following: December 30,2017 December 31,2016 Unrealized Unrealized Cost Gain/(Loss) Fair Value Cost Gain/(Loss) Fair Value Fixed Income $ 8,170 $ (14) $ 8,156 $ 4,310 $ (43) $ 4,267 Equity 9,185 1,524 10,709 5,181 428 5,609 Mutual Funds — — — 481 (9) 472 Total $ 17,355 $ 1,510 $ 18,865 $ 9,972 $ 376 $ 10,348 Our Fixed Income investments consist of short, intermediate, and long term bonds, as well as fixed blend bonds. Within the fixed income investments, we maintain a specific mixture of US treasury notes, US agency mortgage backed securities, private label mortgage backed securities, and various corporate securities. Our equity investments consist of small, mid, and large cap growth and value funds, as well as international equity. The net pre-tax unrealized gain was $1.5 million. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of December 30, 2017. During 2017, Ardellis reported a net realized gain of $256 thousand which was recorded in interest income on the statement of earnings. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 30, 2017 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | C. BUSINESS COMBINATIONS We completed the following business combinations in fiscal 2017 and 2016, which were accounted for using the purchase method (in thousands). Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment October 16, 2017 $931 $ 909 $ 22 All Other Silverwater Box A manufacturer and distributor of total packaging solutions in timber, plastic, steel, fiberglass, and cardboard. Silverwater Box has annual sales of approximately $2.8 million. The acquisition of Silverwater Box allows us to make progress on our goal of becoming a global provider of packaging solutions. May 26, 2017 $5,042 $ 4,880 $ 162 South Go Boy Pallets, LLC ("Go Boy") A manufacturer and distributor of industrial pallets and packaging in Georgia and North Carolina. Go Boy has annual sales of approximately $8 million. The acquisition of Go Boy enabled us to expand our industrial packaging product offering and lumber sourcing in this region. March 6, 2017 $31,818 $ 7,653 $ 24,165 South Robbins Manufacturing Co. ("Robbins") A manufacturer of treated wood products with facilities in Florida, Georgia, and North Carolina. Robbins has annual sales of approximately $86 million. The acquisition of Robbins allowed us to expand our presence in this region and serve customers more cost effectively. March 6, 2017 $22,789 $ 14,341 $ 8,448 North Quality Hardwood Sales, LLC ("Quality") A manufacturer and supplier of hardwood products, including components of cabinets used in homes and recreational vehicles. Quality has annual sales of approximately $30 million. The acquisition of Quality enabled us to expand our product offering to include hardwood-based products. November 29, 2016 $9,449 $ 8,553 $ 896 All Other The UBEECO Group Pty. Ltd. ("Ubeeco") A manufacturer and distributor of a variety of wood packaging and alternative material products, including boxes, crates, pallets, skids, protective packaging, packaging accessories and loose lumber. Ubeeco has annual sales of approximately $20 million. The acquisition of Ubeeco allows us to make progress on our goal of becoming a global provider of packaging solutions. September 16, 2016 $66,691 $ 17,455 $ 49,236 All Other idX Holdings, Inc. ("idX") A designer, manufacturer, and installer of customized interior fixtures and related products used in a variety of commercial structures. idX had annual sales of $300 million. The acquisition of idX enables us to enhance our design, product and service offering to become a tier 1 supplier of interior fixtures to retail customers, and continue to use idX's capabilities to continue to develop new markets for growth. Our goal is to achieve long-term synergies, including: a. Eliminating redundant administrative support costs. b. Using the scale advantage of the Company to reduce material costs of common raw materials. c. Utilizing manufacturing capacity of certain existing locations to supply idX. d. Utilizing idX’s international footprint to identify sourcing opportunities for certain products. e. Cross selling one another’s products and services with our respective customers. f. Collaborating on new product development. July 29, 2016 $1,246 $ 405 $ 841 North Seven D Truss, L.P. A manufacturer and distributor of roof and floor trusses. 7D had annual sales of approximately $4.0 million. The acquisition of 7D gave us the opportunity to consolidate operations with our Gordon, Pennsylvania location. June 30, 2016 $10,787 $ 6,817 $ 4,248 West Idaho Western, Inc. ("IWI") A supplier of products ranging from lumber and plywood to siding and doors. IWI had annual sales of approximately $21 million. The acquisition of IWI allowed us to expand our presence in Boise, Idaho and consolidate with our Rapid Wood operations. November 24, 2014 $7,506 $ 7,885 $ 1,498 West Packnet Ltd ("Packnet") A supplier of industrial packaging and services based in Eagan, MN. Packnet had annual sales of $9.6 million. The acquisition of Packnet gave us the opportunity to expand our presence in the region. April 15, 2016 $1,682 $ — $ 1,887 North Capital Components & Millwork, Inc. The intangible assets for each acquisition were finalized and allocated to their respective identifiable intangible asset and goodwill accounts during 2017, excluding Silverwater Box. At December 30, 2017, the amounts assigned to major intangible classes for the business combinations mentioned above are as follows (in thousands): Non- Goodwill - Compete Customer Tax Agreements Relationships Tradename Goodwill Deductible Silverwater Box $ — $ — $ — $ 909 $ — Go Boy 225 4,655 — — 4,880 Robbins 560 3,530 450 3,113 7,653 Quality 830 5,720 400 7,391 14,341 Ubeeco 183 3,847 575 3,948 — idX 2,630 — 4,500 10,325 — 7D 405 — — — 405 IWI — 2,570 1,070 3,177 — The business combinations mentioned above were not significant to our operating results individually or in aggregate, and thus pro forma results for 2017 and 2016 are not presented. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 30, 2017 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | E. GOODWILL AND OTHER INTANGIBLE ASSETS 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, but 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 the carrying amount of these assets are recoverable based upon a discounted cash flow and market approach analysis, no impairment was recognized. The changes in the net carrying amount of goodwill by reporting segment for the years ended December 30, 2017 and December 31, 2016, are as follows (in thousands): North South West All Other Total Balance as of December 26, 2015 43,253 43,625 84,553 9,559 180,990 2016 Acquisitions — — 3,177 14,329 17,506 Foreign Exchange, Net 133 — — (94) 39 Balance as of December 31, 2016 43,386 43,625 87,730 23,794 198,535 2017 Acquisitions 7,391 3,113 — 909 11,413 Foreign Exchange, Net 350 — — 2,346 2,696 Balance as of December 30, 2017 $ 51,127 $ 46,738 $ 87,730 $ 27,049 $ 212,644 Indefinite-lived intangible assets totaled $ 7.4 million and $2.3 million as of December 30, 2017 and December 31, 2016 related to the idX, International, and Consumer Products reporting units which is included in the All Other reportable segment. The following amounts were included in other amortizable intangible assets, net as of December 30, 2017 and December 31, 2016 (in thousands): 2017 2016 Accumulated Accumulated Assets Amortization Assets Amortization Non-compete agreements $ 9,841 $ (4,208) $ 5,411 $ (1,954) Customer relationships 31,630 (5,986) 25,503 (4,351) Licensing agreements 4,589 (3,450) 4,589 (2,991) Patents 792 (254) 704 (180) Tradename 2,420 (464) — — Total $ 49,272 $ (14,362) $ 36,207 $ (9,476) 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 5 to 15 years 7.1 years Customer relationship 5 to 15 years 13.5 years Licensing agreements 10 years 10 years Tradename (amortizable) 5 to 15 years 12.9 years Amortization expense of intangibles totaled $ 4.9 million, $ 2.8 million and $3.5 million in 2017, 2016 and 2015, respectively. The estimated amortization expense for intangibles for each of the five succeeding fiscal years is as follows (in thousands): 2018 $ 4,879 2019 4,264 2020 3,234 2021 2,979 2022 2,676 Thereafter 16,878 Total $ 34,910 |
DEBT
DEBT | 12 Months Ended |
Dec. 30, 2017 | |
DEBT | |
DEBT | F. DEBT On December 17, 2012, we entered into an unsecured Note Purchase Agreement (the "Agreement") under which we issued our 3.89% Series 2012 A Senior Notes, due December 17, 2022, in the aggregate principal amount of $35 million and our 3.98% Series 2012 B Senior Notes, due December 17, 2024, in the aggregate principal amount of $40 million. Proceeds from the sale of the Series A Senior Notes and Series B Senior Notes were used to repay amounts due on our existing Series 2002‑A Senior Notes, Tranche B totaling $40 million and our revolving credit facility. On November 3, 2014, the Company entered into a five-year, $295 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 $45 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. This facility replaced our $265 million unsecured revolving credit facility. 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. The Company is charged a facility fee on the entire amount of the lending commitment, at a per annum rate ranging from 15 to 32.5 basis points, also determined based upon the Company’s performance. The facility fee is payable quarterly in arrears. Outstanding letters of credit extended on our behalf on December 30, 2017 and December 31, 2016 aggregated $26.5 million and $25.5 million; respectively, which includes approximately $9.8 million related to industrial development revenue bonds. The Company had an outstandi ng balance of $59.4 million and 23.9 million on its revolver at December 30, 2017, and December 31, 2016, respectively . After considering letters of credit, the Company had $225.7 million and $261.3 million in remaining availability on its revolver on December 30, 2017, and December 31, 2016, respectively. Additionally, we have $150 million in availability under a "shelf agreement" for long term debt with a current lender. Letters of credit have one year terms and include an automatic renewal clause. The letters of credit related to industrial development revenue bonds are charged an annual interest rate of 110 basis points, based upon our financial performance. The letters of credit related to workers’ compensation are charged an annual interest rate of 75 basis points. Long-term debt obligations are summarized as follows on December 30, 2017 and December 31, 2016 (amounts in thousands): 2017 2016 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 Revolving credit facility totaling $295 million due on November 3, 2019, interest payable monthly at a floating rate (2.41% on December 30, 2017 and 1.67% on December 31, 2016) 59,422 23,860 Series 1999 Industrial Development Revenue Bonds, due on August 1, 2029, interest payable monthly at a floating rate (1.08% on December 30, 2017 and 0.52% on December 31, 2016) 3,300 3,300 Series 2000 Industrial Development Revenue Bonds, due on October 1, 2020, interest payable monthly at a floating rate (1.14% on December 30, 2017 and 0.59% on December 31, 2016) 2,700 2,700 Series 2002 Industrial Development Revenue Bonds, due on December 1, 2022, interest payable monthly at a floating rate (1.13% on December 30, 2017 and 0.57% on December 31, 2016) 3,700 3,700 Capital leases and foreign affiliate debt 2,058 3,336 146,180 111,896 Less current portion (1,329) (2,634) Less debt issuance costs (177) (203) Long-term portion $ 144,674 $ 109,059 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 30, 2017 and December 31, 2016. On December 30, 2017, the principal maturities of long-term debt and capital lease obligations are as follows (in thousands): 2018 $ 1,329 2019 59,737 2020 2,891 2021 135 2022 38,788 Thereafter 43,300 Total $ 146,180 On December 30, 2017, the estimated fair value of our long-term debt, including the current portion, was $148.0 million, which was $1.8 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. |
LEASES
LEASES | 12 Months Ended |
Dec. 30, 2017 | |
LEASES | |
LEASES | G. LEASES We lease certain real estate under operating lease agreements with original terms ranging from one to ten years. We are required to pay real estate taxes and other occupancy costs under these leases. Certain leases carry renewal options of five to fifteen years. We also lease motor vehicles, equipment, and an aircraft under operating lease agreements for periods of one to ten years. Future minimum payments under non-cancelable operating leases on December 30, 2017 are as follows (in thousands): Operating Leases 2018 $ 19,405 2019 13,187 2020 9,967 2021 7,778 2022 5,947 Thereafter 17,640 Total minimum lease payments $ 73,924 Rent expense was approximately $22.3 million, $ 10.5 million, and $ 6.3 million in 2017, 2016, and 2015, respectively. |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Dec. 30, 2017 | |
DEFERRED COMPENSATION | |
DEFERRED COMPENSATION | H. 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 will commence upon their retirement. 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. In the event cash values are not sufficient to fund such obligations, the program allows us to reduce benefit payments to such amounts as may be funded by accumulated cash values. The deferred compensation liabilities and related cash surrender value of life insurance policies totaled $2.0 million and $2.4 million on December 30, 2017 and December 31, 2016, respectively, and are included "Other Liabilities" and "Other Assets," respectively. 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 $ 1.0 million and $0. 9 million on December 30, 2017 and December 31, 2016 respectively, and are included in "Other Assets." Related liabilities totaled $ 22.6 million and $17.4 million on December 30, 2017 and December 31, 2016, 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 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. |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Dec. 30, 2017 | |
COMMON STOCK | |
COMMON STOCK | I. COMMON STOCK In April 2002, our shareholders approved the 2002 Employee Stock Purchase Plan ("Stock Purchase Plan") to succeed the Employee Stock Purchase Plan originally approved in 1994. In April 2008, our shareholders authorized additional shares to be allocated to the Stock Purchase Plan and extended the term of the Stock Purchase Plan to 2018. The 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. In April 1994, our shareholders approved the Directors’ Retainer Stock Plan ("Stock Retainer Plan"). In April 2007, our shareholders authorized additional shares to be issued pursuant to this 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 shares is increased by the amount of dividends paid on the Company’s common stock. We recognized expense for this plan of $1.7 million in 2017, $0.7 million in 2016, and $0.6 million in 2015. 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. On April 15, 2010, our shareholders approved an amended and restated Long Term Stock Incentive Plan (the "LTSIP”). The LTSIP reserves 1,000,000 shares, plus a balance of unused shares from prior plans of approximately 1.6 million shares, plus an annual increase of no more than 200,000 shares per year which may be added on the dates of our annual shareholder meetings. The LTSIP provides for the grant of stock options, stock appreciation rights, restricted stock, performance shares and other stock-based awards. On October 18, 2017, the Board of Directors approved a three-for-one split of the Company's outstanding shares of common stock effected as a stock dividend. On November 14, 2017, shareholders of record as of October 31, 2017, received two additional shares for each share held on the record date. There is no unrecognized compensation expense remaining for stock options in 2017, 2016, and 2015. 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 27, 2014 771,258 12.13 1.7 1.81 years Granted 228,963 18.00 Vested (364,926) 12.87 Forfeited (11,547) 16.28 Nonvested at December 26, 2015 623,748 13.66 5.2 2.53 years Granted 350,892 23.96 Vested (180,465) 15.66 Forfeited (2,643) 21.45 Nonvested at December 31, 2016 791,532 19.32 4.8 1.51 years Granted 388,248 32.03 Vested (141,111) 12.71 Forfeited (5,043) 30.14 Nonvested at December 30, 2017 1,033,626 $ 24.24 $ 7.1 1.31 years Under the Stock Purchase Plan and LTSIP, we recognized share-based compensation expense of $3.6 million, $ 2.2 million, and $1. 8 million and the related total income tax benefits of $1. 0 million, $ 1.1 million, and $0.9 million in 2017, 2016 and 2015, respectively. In 2017, 2016 and 2015, cash received from option exercises and share issuances under our plans was $0.7 million, $ 0.5 million and $ 1.1 million, respectively. The actual tax benefit realized in 2017, 2016 and 2015 for the tax deductions from option exercises totaled $0.0 million, $0.0 million and $0.4 million, respectively. On November 14, 2001, the Board of Directors approved a share repurchase program (which succeeded a previous program) allowing us to repurchase up to 2.5 million shares of our common stock. On October 14, 2010, our Board authorized an additional 2 million shares to be repurchased under our share repurchase program. We repurchased 445,740 and 0 shares under this program in 2017 and 2016, respectively. As of December 30, 2017, the cumulative total authorized shares available for repurchase is approximately 2.7 million shares. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 30, 2017 | |
RETIREMENT PLANS | |
RETIREMENT PLANS | J. 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 2017, 2016, and 2015, on a discretionary basis, totaling $4.8 million, $ 4.4 million, and $2.4 million respectively. The basis for matching contributions may not exceed the lesser of 6% of the employee’s annual compensation or the IRS limitation. On July 14, 2011, the compensation committee of the board of directors approved 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, benefits totaling 150% of the officer’s highest base salary in the three years immediately preceding separation from service plus health care benefits for a specified period of time if certain eligibility requirements are met. Approximately $ 7.8 million and $6.5 million are accrued in “Other Liabilities” for this plan at December 30, 2017 and December 31, 2016, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 30, 2017 | |
INCOME TAXES | |
INCOME TAXES | K. INCOME TAXES Income tax provisions for the years ended December 30, 2017, December 31, 2016, and December 26, 2015 are summarized as follows (in thousands): 2017 2016 2015 Currently Payable: Federal $ 44,413 $ 42,397 $ 34,672 State and local 8,579 6,341 6,643 Foreign 6,240 6,143 5,599 59,232 54,881 46,914 Net Deferred: Federal (7,681) (455) (1,104) State and local (864) 438 96 Foreign 1,280 310 (36) (7,265) 293 (1,044) $ 51,967 $ 55,174 $ 45,870 The components of earnings before income taxes consist of the following: 2017 2016 2015 U.S. $ 151,395 $ 140,106 $ 115,231 Foreign 24,612 20,565 15,771 Total $ 176,007 $ 160,671 $ 131,002 The effective income tax rates are different from the statutory federal income tax rates for the following reasons: 2017 2016 2015 Statutory federal income tax rate 35 % 35 % 35 % State and local taxes (net of federal benefits) 3.0 3.1 3.6 Effect of noncontrolling owned interest in earnings of partnerships (0.2) (0.2) (0.3) Manufacturing deduction (2.5) (2.4) (2.4) Tax credits, including foreign tax credit (2.0) (1.4) (1.6) Change in uncertain tax positions reserve 0.4 0.4 0.3 Other permanent differences (0.1) 0.1 0.7 Other, net (0.6) (0.3) (0.3) Impact of Tax Act and reduction of corporate tax rate (3.5) — — Effective income tax rate 29.5 % 34.3 % 35.0 % Temporary differences which give rise to deferred income tax assets and (liabilities) on December 30, 2017 and December 31, 2016 are as follows (in thousands): 2017 2016 Employee benefits $ 17,048 $ 13,375 Net operating loss carryforwards 8,592 13,605 Foreign subsidiary capital loss carryforward 546 509 Other tax credits 709 1,196 Inventory 358 2 Reserves on receivables 714 1,208 Accrued expenses 2,060 8,931 Other, net 1,879 2,323 Gross deferred income tax assets 31,906 41,149 Valuation allowance (4,706) (5,371) Deferred income tax assets 27,200 35,778 Depreciation (19,992) (29,971) Intangibles (19,422) (25,078) Other, net — — Deferred income tax liabilities (39,414) (55,049) Net deferred income tax liability $ (12,214) $ (19,271) As of December 30, 2017, the company had federal, state and foreign net operating loss carryforwards of $8.6 million and state tax credit carryforwards of $0.5 million, which will expire at various dates. The Company also has a $0.2 million federal alternative minimum tax credit which it expects to be refunded. The NOL and credit carryforwards expire as follows: Net Operating Losses Tax Credits U.S. State Foreign U.S. State 2017 – 2021 $ — $ 356 $ 2,106 $ — $ 270 2022 - 2026 — 391 243 — 233 2027 - 2031 — 605 156 — — 2032 - 2036 3,431 804 — — — Thereafter — 419 81 — — Total $ 3,431 $ 2,575 $ 2,586 $ — $ 503 As of December 30, 2017, we believe that it is more likely than not that the benefit from certain state and foreign NOL carryforwards as well as certain state tax credit carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance against various NOL and tax credit carryforwards. 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. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the ”Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code that will affect 2017, including, but not limited to, (1) requiring a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries that is payable over eight years and (2) bonus depreciation that will allow for full expensing of qualified property. The Tax Act also established new tax laws that will affect 2018, including, but not limited to, (1) reduction of the U.S. federal corporate tax rate; (2) elimination of the corporate alternative minimum tax (AMT); (3) the creation of the base erosion anti-abuse tax (BEAT), a new minimum tax: (4) a general elimination of U.S. federal income taxes on dividends from foreign subsidiaries; (5) a new provision designed to tax global intangible low-taxed income (GILTI), which allows for the possibility of using foreign tax credits (FTCs) and a deduction of up to 50 percent to offset the income tax liability (subject to some limitations); (6) a new limitation on deductible interest expense; (7) the repeal of the domestic production activity deduction; (8) limitations on the deductibility of certain executive compensation; (9) limitations on the use of FTCs to reduce the U.S. income tax liability; and (10) limitations on net operating losses (NOLs) generated after December 31, 2017, to 80 percent of taxable income. The SEC staff issued SAB 118, which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. In connection with our initial analysis of the impact of the Tax Act, we have recorded a discrete net tax benefit of $6.1 million in the period ending December 30, 2017. This net benefit primarily consists of (1) a net benefit for the corporate rate reduction of $8.2 million; (2) a net expense for the write-down of deferred tax assets for stock based compensation that will no longer be deductible for $1.9 million; and (3) a net expense for the transition tax of $0.2 million. For various reasons that are discussed more fully below, we have not completed our accounting for the income tax effects of certain elements of the Tax Act. If we were able to make reasonable estimates of the effects of elements for which our analysis is not yet complete, we recorded provisional adjustments. If we were not yet able to make reasonable estimates of the impact of certain elements, we have not recorded any adjustments related to those elements and have continued accounting for them in accordance with ASC 740 on the basis of the tax laws in effect before the Tax Act. Our accounting for the following elements of the Tax Act is incomplete. However, we were able to make reasonable estimates of certain effects and, therefore, recorded provisional adjustments as follows: Reduction of U.S. federal corporate tax rate: The Tax Act reduces the corporate tax rate to 21 percent, effective January 1, 2018. For certain of our DTAs and DTLs, we have recorded a provisional decrease of $13.6 million and $21.8 million, respectively, with a corresponding net adjustment of deferred income tax benefit of $8.2 million for the year ended December 30, 2017. While we are able to make a reasonable estimate of the impact of the reduction in corporate rate, it may be affected by other analysis related to the Tax Act, including, but not limited to, our calculation of deemed repatriation of deferred foreign income and the state tax effect of adjustments made to federal temporary differences. Deemed Repatriation Transition Tax: The Deemed Repatriation Transition Tax (Transition Tax) is a tax on previously untaxed accumulated and current earnings and profits (E&P) of certain of our foreign subsidiaries. To determine the amount of the Transition Tax, we must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. We are able to make a reasonable estimate of the Transition Tax and recorded a provisional Transition Tax obligation comprised of $6.3 million tax on foreign earnings and offset by FTCs of $6.1 million. However, we are continuing to gather additional information to more precisely compute the amount of the Transition Tax for any potential state tax effects and we are still evaluating the remaining outside basis differences not closed by the imposition of the transition tax. Tentatively, no changes were made to our ASC 740-30 assertion. Cost recovery : While we have not yet completed all of the computations necessary or completed an inventory of our 2017 expenditures that qualify for immediate expensing, we have recorded a provisional benefit of $0.1 million based on our current intent to fully expense all qualifying expenditures. This resulted in a decrease of approximately $0.3 million to our current income tax payable and a corresponding increase in our DTLs of approximately $0.2 million (after considering the effects of the reduction in income tax rates). Our accounting for the following elements of the Tax Act is incomplete, and we were not yet able to make reasonable estimates of the effects. Therefore, no provisional adjustments were recorded. Global intangible low taxed income (GILTI): The Tax Act creates a new requirement that certain income (i.e., GILTI) earned by controlled foreign corporations (CFCs) must be included currently in the gross income of the CFCs’ U.S. shareholder. GILTI is the excess of the shareholder’s “net CFC tested income” over the net deemed tangible income return, which is currently defined as the excess of (1) 10 percent of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. Because of the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the Tax Act and the application of ASC 740. Under U.S. GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). Our selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing our global income to determine whether we expect to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. Because whether we expect to have future U.S. inclusions in taxable income related to GILTI depends on not only our current structure and estimated future results of global operations but also our intent and ability to modify our structure and/or our business, we are not yet able to reasonably estimate the effect of the provision of the Tax Act. Therefore, we have not made any adjustments related to potential GILTI tax in our financial statements and have not made a policy decision regarding whether to record deferred taxes on GILTI. Valuation allowances: The company must assess whether valuation allowances assessments are affected by various aspects of the Tax Act (e.g., deemed repatriation of deferred foreign income and the effects on state NOLs, GILTI inclusions, new categories of FTCs). Since, as discussed herein, the company has recorded no amounts related to certain portions of the Tax Act, any corresponding determination of the need for or change in a valuation allowance has not be completed and no changes to valuation allowances as a result of the Tax Act have been recorded. The remaining provisions of the Tax Act, as listed above, became effective on January 1, 2018 and did not require accounting treatment for the year-ended December 30, 2017. We are currently analyzing the impact of these provisions. |
ACCOUNTING FOR UNCERTAINTY IN I
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES | 12 Months Ended |
Dec. 30, 2017 | |
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES | |
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES | L. 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): 2017 2016 2015 Gross unrecognized tax benefits beginning of year $ 3,381 $ 2,209 $ 1,793 Increase in tax positions for prior years 4 243 — Increase in tax positions due to acquisitions — 362 — Increase in tax positions for current year 1,107 905 754 Settlements with taxing authorities (2) (32) — Lapse in statute of limitations (490) (306) (338) Gross unrecognized tax benefits end of year $ 4,000 $ 3,381 $ 2,209 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 .7 million, $0.6 million, and $0.2 million at December 30, 2017, December 31, 2016, and December 26, 2015, respectively. 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 2014. A number of routine state and local examinations are currently ongoing. Due to the potential for resolution of state examinations, and the expiration of various statutes of limitation, and new positions that may be taken, it is reasonably possible that the amounts of unrecognized tax benefits could change in the next twelve months is $0.7 million. |
COMMITMENTS, CONTINGENCIES, AND
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | 12 Months Ended |
Dec. 30, 2017 | |
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | |
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | M. 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. We own and operate a number of facilities throughout the United States that chemically treat lumber products. In connection with the ownership and operation of these and other real properties, and the disposal or treatment of hazardous or toxic substances, we may, under various federal, state, and local environmental laws, ordinances, and regulations, be potentially liable for removal and remediation costs, as well as other potential costs, damages, and expenses. Environmental reserves, calculated with no discount rate, have been established to cover remediation activities at wood preservation facilities in Stockertown, PA; Elizabeth City, NC; Auburndale, FL; and Medley, FL. In addition, a reserve was established for our facility in Thornton, CA to remove certain lead containing materials which existed on the property at the time of purchase. On a consolidated basis, we have reserved approximately $3.0 million and $3.6 million on December 30, 2017 and December 31, 2016, respectively, representing the estimated costs to complete future remediation efforts. These amounts have not been reduced by an insurance receivable. Many of our wood treating operations utilize “Subpart W” drip pads, defined as hazardous waste management units by the Environmental Protection Agency. The rules regulating drip pads require that a pad be “closed” at the point that it is no longer intended to be used for wood treating operations or to manage hazardous waste. Closure involves identification and disposal of contaminants which are required to be removed from the facility. The cost of closure is dependent upon a number of factors including, but not limited to, identification and removal of contaminants, cleanup standards that vary from state to state, and the time period over which the cleanup would be completed. Based on our present knowledge of existing circumstances, it is considered probable that these costs will approximat e $0. 2 million. As a result, this amount is recorded in other long-term liabilities on December 30, 2017. In February 2014, one of our operations was served with a federal grand jury subpoena from the Southern District of New York. The subpoena was issued in connection with an investigation being conducted by the US Attorney’s Office for the Southern District of New York. The subpoena requested documents relating to a developer and construction projects for which our operation had provided materials and labor. Following receipt of the subpoena, the Audit Committee of the Company’s Board of Directors retained outside counsel to conduct an internal investigation and respond to the subpoena. The Company cooperated in all respects with the US Attorney’s Office, complied with this subpoena and voluntarily provided additional information. As a result of the internal investigation, in 2014, two Company employees were terminated for violating the Company’s Code of Business Conduct and Ethics. In May 2015, those ex-employees were indicted by the grand jury. In April 2016, one of the two former employees pled guilty to four of the charges included in the indictment. In May 2016, the other former employee was found guilty by a jury on four of the charges included in the indictment. The Company has not been named as a target and continues to cooperate with the US Attorney’s Office in this matter. Based upon prior communications with the US Attorney’s Office, we do not believe that the resolution of this matter will have a material adverse impact on our financial condition or the results of our operations. In addition, on December 30, 2017, 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 30, 2017, we had outstanding purchase commitments on commenced capital projects of approximately $7.7 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 affect 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 30, 2017, we had approximately $1.4 million in outstanding payment and performance bonds for open projects. We had approximately $ 7.6 million in payment and performance bonds outstanding for completed projects which are still under warranty. On December 30, 2017 we had outstanding letters of credit totaling $26.5 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 to guarantee our performance under certain insurance contracts. We currently have irrevocable letters of credit outstanding totaling approximately $16. 7 million for these types of insurance arrangements. We have reserves recorded on our balance sheet, in accrued liabilities, that reflect our expected future liabilities under these insurance 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 $9.8 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 Universal Forest Products, Inc. in certain debt agreements, including the Series 2012 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 2017 which would require us to recognize a liability on our balance sheet. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 30, 2017 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | N. SEGMENT REPORTING ASC 280, Segment Reporting (“ASC 280”), defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates manufacturing, treating and distribution facilities throughout North America, Europe, Asia and Australia, but primarily in the United States. The Company manages the operations of its individual locations primarily through a geographic reporting structure under which each location is included in a region and regions are included in our North, South, West, and International divisions. The exceptions to this geographic reporting and management structure are (a) the Company’s Alternative Materials Division, which offers a portfolio of non-wood products and distributes those products nation-wide and is accounted for as a reporting unit within the All Other segment, (b) the Company’s distribution unit (referred to as UFPD) which distributes a variety of products to the manufactured housing industry and is accounted for as a reporting unit within the North segment, and (c) idX division, which designs, manufactures, and installs customized interior fixtures and is accounted for within the All Other segment. With respect to the facilities in the north, south, and west segments, these facilities generally supply the three markets the Company serves nationally - Retail, Industrial, and Construction. Also, substantially all of our facilities support customers in the immediate geographical region surrounding the facility. Our Alternative Materials, International, and idX divisions have been included in the “All Other” column of the table below. The “Corporate” column includes unallocated administrative costs and certain incentive compensation expense. 2017 All North South West Other Corporate Total Net sales to outside customers $ 1,133,656 $ 837,370 $ 1,417,924 $ 552,232 $ — $ 3,941,182 Intersegment net sales 67,161 74,566 83,245 167,568 — 392,540 Interest expense (income) 4 160 293 (473) 6,234 6,218 Amortization expense 559 607 1,723 1,971 — 4,860 Depreciation expense 10,511 6,880 14,116 8,586 8,443 48,536 Segment earnings from operations 61,326 46,646 82,465 17,296 (26,264) 181,469 Segment assets 351,270 240,661 462,311 356,264 54,171 1,464,677 Capital expenditures 23,026 12,286 23,212 9,865 2,727 71,116 2016 All North South West Other Corporate Total Net sales to outside customers $ 1,000,426 $ 711,862 $ 1,251,093 $ 277,112 $ — $ 3,240,493 Intersegment net sales 57,770 38,641 88,311 19,322 — 204,044 Interest expense 1 307 387 143 3,737 4,575 Amortization expense 115 — 1,858 822 — 2,795 Depreciation expense 8,948 6,190 13,326 4,531 7,828 40,823 Segment earnings from operations 59,408 47,146 76,875 16,639 (35,630) 164,438 Segment assets 302,009 192,085 438,674 313,304 45,986 1,292,058 Capital expenditures 10,902 5,571 19,648 6,037 11,604 53,762 2015 All North South West Other Corporate Total Net sales to outside customers $ 922,092 $ 656,550 $ 1,133,398 $ 175,031 $ — $ 2,887,071 Intersegment net sales 51,796 29,940 58,412 13,673 — 153,821 Interest expense — 296 516 52 4,269 5,133 Amortization expense 267 9 2,467 788 — 3,531 Depreciation expense 7,901 6,255 13,033 3,707 6,814 37,710 Segment earnings from operations 53,879 30,740 70,220 3,038 (22,410) 135,467 Segment assets 279,664 192,756 382,251 152,527 100,481 1,107,679 Capital expenditures 9,622 6,138 13,356 6,698 7,708 43,522 Information regarding principal geographic areas was as follows (in thousands): 2017 2016 2015 Long-Lived Long-Lived Long-Lived Tangible Tangible Tangible Net Sales Assets Net Sales Assets Net Sales Assets United States $ 3,821,366 $ 313,976 $ 3,162,331 $ 280,362 $ 2,811,359 $ 244,040 Foreign 119,816 30,380 78,162 26,106 75,712 15,408 Total $ 3,941,182 $ 344,356 $ 3,240,493 $ 306,468 $ 2,887,071 $ 259,448 Sales generated in Canada and Mexico are primarily to customers in the United States of America. The following table presents, for the periods indicated, our percentage of value-added and commodity-based sales to total sales. Value-Added Commodity-Based 2017 % % 2016 % % 2015 % % Value-added product sales consist of fencing, decking, lattice, and other specialty products sold to the retail building materials market, specialty wood packaging, engineered wood components, in-store fixtures, and wood-alternative products. Engineered wood components include roof trusses, wall panels, and floor systems. Wood-alternative products consist primarily of composite wood and plastics. Although we consider the treatment of dimensional lumber with certain chemical preservatives a value-added process, treated lumber is not presently included in the value-added sales totals. Commodity-based product sales consist primarily of remanufactured lumber and preservative treated lumber. The following table presents, for the periods indicated, our gross sales (in thousands) by major product classification. Year Ended December 30, December 31, December 26, 2017 2016 2015 Value-Added Sales Trusses – residential, modular and manufactured housing $ 368,591 $ 334,956 $ 299,111 Fencing 187,905 176,668 149,526 Decking and railing – composite, wood and other 244,910 200,004 177,787 Turn-key framing and installed sales 149,520 141,474 129,803 Industrial packaging and components 471,262 391,610 374,030 Engineered wood products (eg. LVL; i-joist) 76,507 76,503 67,804 In-store fixtures 260,174 87,262 — Manufactured brite and other lumber 78,638 68,517 59,804 Wall panels 61,226 53,279 46,496 Outdoor DIY products (eg. stakes; landscape ties) 110,327 106,284 56,846 Construction and building materials (eg. door packages; drywall) 265,048 204,732 200,901 Lattice – plastic and wood 48,736 50,556 47,392 Manufactured brite and other panels 75,742 60,753 57,999 Siding, trim and moulding 85,016 66,048 45,215 Hardware 21,218 20,713 17,123 Manufactured treated lumber 17,584 17,412 13,611 Manufactured treated panels 3,329 3,449 5,353 Other 9,275 7,518 5,668 Total Value-Added Sales $ 2,535,008 $ 2,067,738 $ 1,754,469 Commodity-Based Sales Non-manufactured brite and other lumber 576,374 469,042 458,023 Non-manufactured treated lumber 575,505 479,333 423,543 Non-manufactured brite and other panels 271,310 238,806 253,678 Non-manufactured treated panels 34,970 30,374 31,789 Other 13,036 12,084 10,978 Total Commodity-Based Sales $ 1,471,195 $ 1,229,639 $ 1,178,011 Total Gross Sales $ 4,006,203 $ 3,297,377 $ 2,932,480 Sales allowances (65,021) (56,884) (45,409) Total Net Sales $ 3,941,182 $ 3,240,493 $ 2,887,071 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 30, 2017 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | O. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following table sets forth selected financial information for all of the quarters, consisting of 13 and 14 weeks during the years ended December 30, 2017 and December 31, 2016, respectively, (in thousands, except per share data): First Second Third Fourth 2017 2016 2017 2016 2017 2016 2017 2016 Net sales $ 846,130 $ 682,151 $ 1,072,375 $ 872,093 $ 1,056,586 $ 826,665 $ 966,091 $ 859,584 Gross profit 120,740 102,739 148,240 131,487 144,687 118,054 129,159 122,310 Net earnings 21,634 20,255 34,574 34,237 34,669 28,764 33,162 22,241 Net earnings attributable to controlling interest 21,062 19,212 33,642 33,398 33,693 27,819 31,115 20,750 Basic earnings per share 0.34 0.32 0.55 0.55 0.55 0.45 0.51 0.34 Diluted earnings per share 0.34 0.32 0.55 0.55 0.55 0.45 0.51 0.34 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 30, 2017 | |
SUBSEQUENT EVENTS | |
Subsequent Events | P. SUBSEQUENT EVENTS Subsequent to December 30, 2017, the Company completed a sale and lease-back transaction with a property in Medley, Florida. The sale price for the property was approximately $36 million and created a $7 million pre-tax gain. The transaction is part of a strategy to create efficiencies and advantages not possible with the current facility by optimizing the capacity of its other three Florida operations, including two it acquired from Robbins Manufacturing in 2017, and adding a state-of-the-art facility in South Florida. The Company will lease back the Medley, Florida, facility for two years as it executes its long-term plan for Florida and the Southeast region. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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 SUBSIDIAIRIES | 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 2017, 2016, and 2015 relate to the fiscal years ended December 30, 2017, December 31, 2016, and December 26, 2015, respectively. Fiscal year 2016 was comprised of 53 weeks, which contributed an additional $ 60 million in sales in 2016 compared to fiscal years 2017 and 2015, which 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. |
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. Restricted cash consists of amounts required to be held for loss funding totaling $0.5 million and $0.4 million as of December 30, 2017 and December 31, 2016, respectively. In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2016-18, “Statement of Cash Flows (Topic 230)” (ASU 2016-18). Under ASU 2016-18, an entity will be required to explain changes in the statement of cash flows during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments in this update should be applied using retrospective transition method to each period presented. Companies are required to adopt the new standard for fiscal years beginning after December 15, 2017. Early adoption of ASU 2016-18 is permitted, including adoption in an interim period. The Company has early adopted this standard during the first quarter of 2017. |
INVESTMENTS | INVESTMENTS Investments are deemed to be "available for sale" and are, accordingly, carried at fair value being the quoted market value. Unrealized investment gains or losses, net of deferred taxes, are reported as a separate component of comprehensive income or loss until sold. |
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, 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 30,2017: Allowance for possible losses on accounts receivable $ 2,845 $ 28,102 $ (28,523) $ 2,424 Year Ended December 31, 2016: Allowance for possible losses on accounts receivable $ 2,672 $ 28,405 $ (28,232) $ 2,845 Year Ended December 26, 2015: Allowance for possible losses on accounts receivable $ 2,390 $ 20,538 $ (20,256) $ 2,672 * 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 $ 4.8 million and $6.0 million as of December 30, 2017 and December 31, 2016, respectively. All amounts are expected to be collected within 18 months. Concentration of accounts receivable related to our largest customer totaled $55.9 million and $34.0 million as of December 30, 2017 and December 31, 2016, respectively. |
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 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 $14.8 million as of December 30, 2017 and $12.2 million as of December 31, 2016. |
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 capital 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 8 years |
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. |
LEASES | LEASES In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2016‑02, “Leases (Topic 842)” (ASU 2016‑02). Under ASU 2016‑02, an entity will be required to recognize assets and liabilities for the rights and obligations created by leases on the entity’s balance sheet for both finance and operating leases. For leases with a term of 12 months or less, an entity can elect to not recognize lease assets and lease liabilities and expense the lease over a straight-line basis for the term of the lease. ASU 2016‑02 will require new disclosures that depict the amount, timing, and uncertainty of cash flows pertaining to an entity’s leases. Companies are required to adopt the new standard for annual and interim periods beginning after December 15, 2018. Early adoption of ASU 2016‑02 is permitted. The FASB has tentatively decided to amend certain aspects of its new leasing standard in an attempt to provide a relief from implementation costs. Specifically, entities may elect not to restate their comparative periods in the period of adoption when transitioning to the new standard. The Company plans to continue to evaluate the effect of the new leasing guidance in 2018; therefore, the quantitative impact has not yet been determined however the Company anticipates only a balance sheet impact. |
GOODWILL | GOODWILL Our annual testing date for evaluating goodwill and indefinite-lived intangible asset impairment is the first day of the Company’s fourth fiscal quarter for all reporting units. Additionally, the Company reviews various triggering events throughout the year to ensure that a mid-year impairment analysis is not 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 30, 2017 and December 31, 2016. 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 30, 2017, Ardellis had 30 such contracts in place. Reserves associated with these contracts were $3.4 million at December 30, 2017 and $2.5 million at December 31, 2016, 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 On May 28, 2014, the FASB issued ASU No. 2014‑09 (Accounting Standard Codification 606), Revenue from Contracts with Customers, which will replace most existing revenue recognition guidance in U.S. GAAP. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. The ASU requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The Company is currently finalizing its evaluation of the impact of adopting this new guidance, which is not expected to materially impact the Company's financial condition or results of operations. The five-step model has been applied to existing contracts with customers, and based upon this review, the Company does not expect the adoption of ASU 2014-09 to have a material quantitative impact on its consolidated financial statements, as the timing of revenue recognition for product sales will continue to occur at the point of shipment. Other types of revenue, such as installation and framing, which are immaterial to our total revenue, will continue to be recognized over the appropriate period of time. As required by the standard, the Company expects to make additional disclosures related to the nature, timing and uncertainty of revenue and cash flows arising from contracts with customers. The Company will adopt this standard in the first quarter of fiscal year 2018 using the modified retrospective. Revenue is recognized at the time the product is shipped to the customer. 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. Earnings on construction contracts are reflected in operations using percentage-of-completion accounting, under either the cost to cost or units of delivery methods, depending on the nature of the business at individual operations. Under percentage-of-completion 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 percentage-of-completion 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 recognized losses to the extent that they exist. The following table presents the balances of percentage-of-completion accounts on December 30, 2017 and December 31, 2016 which are included in other current assets and other accrued liabilities, respectively (in thousands): December 30, December 31, 2017 2016 Cost and Earnings in Excess of Billings $ 5,005 $ 2,573 Billings in Excess of Cost and Earnings 4,435 4,748 |
SHIPPING AND HANDLING OF PRODUCT | 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. |
EARNINGS PER SHARE | EARNINGS PER SHARE The computation of earnings per share (“EPS”) is as follows (in thousands), which incorporate the retroactive effect of the Company’s 3 for 1 stock split: December 30, December 31, December 26, 2017 2016 2015 Numerator: Net earnings attributable to controlling interest $ 119,512 $ 101,179 $ 80,595 Adjustment for earnings allocated to non-vested restricted common stock (2,225) (1,595) (1,059) Net earnings for calculating EPS $ 117,287 $ 99,584 $ 79,536 Denominator: Weighted average shares outstanding 61,416 61,089 60,552 Adjustment for non-vested restricted common stock (1,143) (963) (795) Shares for calculating basic EPS 60,273 60,126 59,757 Effect of dilutive stock options 90 99 108 Shares for calculating diluted EPS 60,363 60,225 59,865 Net earnings per share: Basic $ 1.95 $ 1.66 $ 1.33 Diluted $ 1.94 $ 1.65 $ 1.33 No options were excluded from the computation of diluted EPS for 2017, 2016, or 2015. |
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. The Company operates manufacturing, treating and distribution facilities throughout North America, Europe, Asia and Australia, but primarily in the United States. The Company manages the operations of its individual locations primarily through a geographic reporting structure under which each location is included in a region and regions are included in our North, South, West, and International divisions. The exceptions to this geographic reporting and management structure are (a) the Company’s Alternative Materials Division, which offers a portfolio of non-wood products and distributes those products nation-wide and is accounted for as a reporting unit within the All Other segment, (b) the Company’s distribution unit (referred to as UFPD) which distributes a variety of products to the manufactured housing industry and is accounted for as a reporting unit within the North segment, and (c) idX division, which designs, manufactures, and installs customized interior fixtures and is accounted for within the All Other segment. With respect to the facilities in the north, south, and west segments, these facilities generally supply the three markets the Company serves nationally - Retail, Industrial, and Construction. Also, substantially all of our facilities support customers in the immediate geographical region surrounding the facility. |
SUMMARY OF SIGNIFICANT ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
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 30,2017: Allowance for possible losses on accounts receivable $ 2,845 $ 28,102 $ (28,523) $ 2,424 Year Ended December 31, 2016: Allowance for possible losses on accounts receivable $ 2,672 $ 28,405 $ (28,232) $ 2,845 Year Ended December 26, 2015: Allowance for possible losses on accounts receivable $ 2,390 $ 20,538 $ (20,256) $ 2,672 * |
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 8 years |
Schedule of Percentage of Completion Account Balances | The following table presents the balances of percentage-of-completion accounts on December 30, 2017 and December 31, 2016 which are included in other current assets and other accrued liabilities, respectively (in thousands): December 30, December 31, 2017 2016 Cost and Earnings in Excess of Billings $ 5,005 $ 2,573 Billings in Excess of Cost and Earnings 4,435 4,748 |
Computation of earnings per share | The computation of earnings per share (“EPS”) is as follows (in thousands), which incorporate the retroactive effect of the Company’s 3 for 1 stock split: December 30, December 31, December 26, 2017 2016 2015 Numerator: Net earnings attributable to controlling interest $ 119,512 $ 101,179 $ 80,595 Adjustment for earnings allocated to non-vested restricted common stock (2,225) (1,595) (1,059) Net earnings for calculating EPS $ 117,287 $ 99,584 $ 79,536 Denominator: Weighted average shares outstanding 61,416 61,089 60,552 Adjustment for non-vested restricted common stock (1,143) (963) (795) Shares for calculating basic EPS 60,273 60,126 59,757 Effect of dilutive stock options 90 99 108 Shares for calculating diluted EPS 60,363 60,225 59,865 Net earnings per share: Basic $ 1.95 $ 1.66 $ 1.33 Diluted $ 1.94 $ 1.65 $ 1.33 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
FAIR VALUE | |
Assets measured at fair value | December 30, 2017 December 31, 2016 Quoted Prices with Quoted Prices with Prices in Other Prices in Other Active Observable Active Observable Markets Inputs Markets Inputs (in thousands) (Level 1) (Level 2) Total (Level 1) (Level 2) Total Money market funds $ 64 $ 3,071 $ 3,135 $ 64 $ 178 $ 242 Fixed income funds 1,182 6,974 8,156 1,676 2,592 4,268 Equity securities 10,710 — 10,710 5,609 — 5,609 Mutual funds: Domestic stock funds 367 — 367 760 — 760 International stock funds 91 — 91 72 — 72 Target funds 270 — 270 235 — 235 Bond funds 209 — 209 201 — 201 Total mutual funds 937 — 937 1,268 — 1,268 Total $ 12,893 $ 10,045 $ 22,938 $ 8,617 $ 2,770 $ 11,387 Assets at fair value $ 12,893 $ 10,045 $ 22,938 $ 8,617 $ 2,770 $ 11,387 |
Available for sale investment portfolio | December 30,2017 December 31,2016 Unrealized Unrealized Cost Gain/(Loss) Fair Value Cost Gain/(Loss) Fair Value Fixed Income $ 8,170 $ (14) $ 8,156 $ 4,310 $ (43) $ 4,267 Equity 9,185 1,524 10,709 5,181 428 5,609 Mutual Funds — — — 481 (9) 472 Total $ 17,355 $ 1,510 $ 18,865 $ 9,972 $ 376 $ 10,348 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
BUSINESS COMBINATIONS | |
Business Acquisitions Accounted for Using Purchase Method | We completed the following business combinations in fiscal 2017 and 2016, which were accounted for using the purchase method (in thousands). Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment October 16, 2017 $931 $ 909 $ 22 All Other Silverwater Box A manufacturer and distributor of total packaging solutions in timber, plastic, steel, fiberglass, and cardboard. Silverwater Box has annual sales of approximately $2.8 million. The acquisition of Silverwater Box allows us to make progress on our goal of becoming a global provider of packaging solutions. May 26, 2017 $5,042 $ 4,880 $ 162 South Go Boy Pallets, LLC ("Go Boy") A manufacturer and distributor of industrial pallets and packaging in Georgia and North Carolina. Go Boy has annual sales of approximately $8 million. The acquisition of Go Boy enabled us to expand our industrial packaging product offering and lumber sourcing in this region. March 6, 2017 $31,818 $ 7,653 $ 24,165 South Robbins Manufacturing Co. ("Robbins") A manufacturer of treated wood products with facilities in Florida, Georgia, and North Carolina. Robbins has annual sales of approximately $86 million. The acquisition of Robbins allowed us to expand our presence in this region and serve customers more cost effectively. March 6, 2017 $22,789 $ 14,341 $ 8,448 North Quality Hardwood Sales, LLC ("Quality") A manufacturer and supplier of hardwood products, including components of cabinets used in homes and recreational vehicles. Quality has annual sales of approximately $30 million. The acquisition of Quality enabled us to expand our product offering to include hardwood-based products. November 29, 2016 $9,449 $ 8,553 $ 896 All Other The UBEECO Group Pty. Ltd. ("Ubeeco") A manufacturer and distributor of a variety of wood packaging and alternative material products, including boxes, crates, pallets, skids, protective packaging, packaging accessories and loose lumber. Ubeeco has annual sales of approximately $20 million. The acquisition of Ubeeco allows us to make progress on our goal of becoming a global provider of packaging solutions. September 16, 2016 $66,691 $ 17,455 $ 49,236 All Other idX Holdings, Inc. ("idX") A designer, manufacturer, and installer of customized interior fixtures and related products used in a variety of commercial structures. idX had annual sales of $300 million. The acquisition of idX enables us to enhance our design, product and service offering to become a tier 1 supplier of interior fixtures to retail customers, and continue to use idX's capabilities to continue to develop new markets for growth. Our goal is to achieve long-term synergies, including: a. Eliminating redundant administrative support costs. b. Using the scale advantage of the Company to reduce material costs of common raw materials. c. Utilizing manufacturing capacity of certain existing locations to supply idX. d. Utilizing idX’s international footprint to identify sourcing opportunities for certain products. e. Cross selling one another’s products and services with our respective customers. f. Collaborating on new product development. July 29, 2016 $1,246 $ 405 $ 841 North Seven D Truss, L.P. A manufacturer and distributor of roof and floor trusses. 7D had annual sales of approximately $4.0 million. The acquisition of 7D gave us the opportunity to consolidate operations with our Gordon, Pennsylvania location. June 30, 2016 $10,787 $ 6,817 $ 4,248 West Idaho Western, Inc. ("IWI") A supplier of products ranging from lumber and plywood to siding and doors. IWI had annual sales of approximately $21 million. The acquisition of IWI allowed us to expand our presence in Boise, Idaho and consolidate with our Rapid Wood operations. November 24, 2014 $7,506 $ 7,885 $ 1,498 West Packnet Ltd ("Packnet") A supplier of industrial packaging and services based in Eagan, MN. Packnet had annual sales of $9.6 million. The acquisition of Packnet gave us the opportunity to expand our presence in the region. April 15, 2016 $1,682 $ — $ 1,887 North Capital Components & Millwork, Inc. |
Acquired Intangible Assets | At December 30, 2017, the amounts assigned to major intangible classes for the business combinations mentioned above are as follows (in thousands): Non- Goodwill - Compete Customer Tax Agreements Relationships Tradename Goodwill Deductible Silverwater Box $ — $ — $ — $ 909 $ — Go Boy 225 4,655 — — 4,880 Robbins 560 3,530 450 3,113 7,653 Quality 830 5,720 400 7,391 14,341 Ubeeco 183 3,847 575 3,948 — idX 2,630 — 4,500 10,325 — 7D 405 — — — 405 IWI — 2,570 1,070 3,177 — |
GOODWILL AND OTHER INTANGIBLE28
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of Goodwill | The changes in the net carrying amount of goodwill by reporting segment for the years ended December 30, 2017 and December 31, 2016, are as follows (in thousands): North South West All Other Total Balance as of December 26, 2015 43,253 43,625 84,553 9,559 180,990 2016 Acquisitions — — 3,177 14,329 17,506 Foreign Exchange, Net 133 — — (94) 39 Balance as of December 31, 2016 43,386 43,625 87,730 23,794 198,535 2017 Acquisitions 7,391 3,113 — 909 11,413 Foreign Exchange, Net 350 — — 2,346 2,696 Balance as of December 30, 2017 $ 51,127 $ 46,738 $ 87,730 $ 27,049 $ 212,644 |
Other Intangible Assets | The following amounts were included in other amortizable intangible assets, net as of December 30, 2017 and December 31, 2016 (in thousands): 2017 2016 Accumulated Accumulated Assets Amortization Assets Amortization Non-compete agreements $ 9,841 $ (4,208) $ 5,411 $ (1,954) Customer relationships 31,630 (5,986) 25,503 (4,351) Licensing agreements 4,589 (3,450) 4,589 (2,991) Patents 792 (254) 704 (180) Tradename 2,420 (464) — — Total $ 49,272 $ (14,362) $ 36,207 $ (9,476) |
Estimated Useful Lives of Intangible Assets | Weighted Average Intangible Asset Type Estimated Useful Life Amortization Period Non-compete agreements 5 to 15 years 7.1 years Customer relationship 5 to 15 years 13.5 years Licensing agreements 10 years 10 years Tradename (amortizable) 5 to 15 years 12.9 years |
Expected Amortization Expense | Amortization expense of intangibles totaled $ 4.9 million, $ 2.8 million and $3.5 million in 2017, 2016 and 2015, respectively. The estimated amortization expense for intangibles for each of the five succeeding fiscal years is as follows (in thousands): 2018 $ 4,879 2019 4,264 2020 3,234 2021 2,979 2022 2,676 Thereafter 16,878 Total $ 34,910 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
DEBT | |
Long-term Debt and Capital Lease Obligations | Long-term debt obligations are summarized as follows on December 30, 2017 and December 31, 2016 (amounts in thousands): 2017 2016 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 Revolving credit facility totaling $295 million due on November 3, 2019, interest payable monthly at a floating rate (2.41% on December 30, 2017 and 1.67% on December 31, 2016) 59,422 23,860 Series 1999 Industrial Development Revenue Bonds, due on August 1, 2029, interest payable monthly at a floating rate (1.08% on December 30, 2017 and 0.52% on December 31, 2016) 3,300 3,300 Series 2000 Industrial Development Revenue Bonds, due on October 1, 2020, interest payable monthly at a floating rate (1.14% on December 30, 2017 and 0.59% on December 31, 2016) 2,700 2,700 Series 2002 Industrial Development Revenue Bonds, due on December 1, 2022, interest payable monthly at a floating rate (1.13% on December 30, 2017 and 0.57% on December 31, 2016) 3,700 3,700 Capital leases and foreign affiliate debt 2,058 3,336 146,180 111,896 Less current portion (1,329) (2,634) Less debt issuance costs (177) (203) Long-term portion $ 144,674 $ 109,059 |
Principal Maturities of Long-term Debt and Capital Lease Obligations | On December 30, 2017, the principal maturities of long-term debt and capital lease obligations are as follows (in thousands): 2018 $ 1,329 2019 59,737 2020 2,891 2021 135 2022 38,788 Thereafter 43,300 Total $ 146,180 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
LEASES | |
Future Minimum Lease Payments | Future minimum payments under non-cancelable operating leases on December 30, 2017 are as follows (in thousands): Operating Leases 2018 $ 19,405 2019 13,187 2020 9,967 2021 7,778 2022 5,947 Thereafter 17,640 Total minimum lease payments $ 73,924 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
COMMON STOCK | |
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 27, 2014 771,258 12.13 1.7 1.81 years Granted 228,963 18.00 Vested (364,926) 12.87 Forfeited (11,547) 16.28 Nonvested at December 26, 2015 623,748 13.66 5.2 2.53 years Granted 350,892 23.96 Vested (180,465) 15.66 Forfeited (2,643) 21.45 Nonvested at December 31, 2016 791,532 19.32 4.8 1.51 years Granted 388,248 32.03 Vested (141,111) 12.71 Forfeited (5,043) 30.14 Nonvested at December 30, 2017 1,033,626 $ 24.24 $ 7.1 1.31 years |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
INCOME TAXES | |
Components of Income Tax Expense (Benefit) | Income tax provisions for the years ended December 30, 2017, December 31, 2016, and December 26, 2015 are summarized as follows (in thousands): 2017 2016 2015 Currently Payable: Federal $ 44,413 $ 42,397 $ 34,672 State and local 8,579 6,341 6,643 Foreign 6,240 6,143 5,599 59,232 54,881 46,914 Net Deferred: Federal (7,681) (455) (1,104) State and local (864) 438 96 Foreign 1,280 310 (36) (7,265) 293 (1,044) $ 51,967 $ 55,174 $ 45,870 |
Components of Earnings Before Income Taxes | 2017 2016 2015 U.S. $ 151,395 $ 140,106 $ 115,231 Foreign 24,612 20,565 15,771 Total $ 176,007 $ 160,671 $ 131,002 |
Effective Income Tax Rate Reconciliation | 2017 2016 2015 Statutory federal income tax rate 35 % 35 % 35 % State and local taxes (net of federal benefits) 3.0 3.1 3.6 Effect of noncontrolling owned interest in earnings of partnerships (0.2) (0.2) (0.3) Manufacturing deduction (2.5) (2.4) (2.4) Tax credits, including foreign tax credit (2.0) (1.4) (1.6) Change in uncertain tax positions reserve 0.4 0.4 0.3 Other permanent differences (0.1) 0.1 0.7 Other, net (0.6) (0.3) (0.3) Impact of Tax Act and reduction of corporate tax rate (3.5) — — Effective income tax rate 29.5 % 34.3 % 35.0 % |
Components of Deferred Tax Assets and Liabilities | Temporary differences which give rise to deferred income tax assets and (liabilities) on December 30, 2017 and December 31, 2016 are as follows (in thousands): 2017 2016 Employee benefits $ 17,048 $ 13,375 Net operating loss carryforwards 8,592 13,605 Foreign subsidiary capital loss carryforward 546 509 Other tax credits 709 1,196 Inventory 358 2 Reserves on receivables 714 1,208 Accrued expenses 2,060 8,931 Other, net 1,879 2,323 Gross deferred income tax assets 31,906 41,149 Valuation allowance (4,706) (5,371) Deferred income tax assets 27,200 35,778 Depreciation (19,992) (29,971) Intangibles (19,422) (25,078) Other, net — — Deferred income tax liabilities (39,414) (55,049) Net deferred income tax liability $ (12,214) $ (19,271) |
Summary of Operating Loss Carryforwards | Net Operating Losses Tax Credits U.S. State Foreign U.S. State 2017 – 2021 $ — $ 356 $ 2,106 $ — $ 270 2022 - 2026 — 391 243 — 233 2027 - 2031 — 605 156 — — 2032 - 2036 3,431 804 — — — Thereafter — 419 81 — — Total $ 3,431 $ 2,575 $ 2,586 $ — $ 503 |
Summary of Tax Credit Carryforwards | Net Operating Losses Tax Credits U.S. State Foreign U.S. State 2017 – 2021 $ — $ 356 $ 2,106 $ — $ 270 2022 - 2026 — 391 243 — 233 2027 - 2031 — 605 156 — — 2032 - 2036 3,431 804 — — — Thereafter — 419 81 — — Total $ 3,431 $ 2,575 $ 2,586 $ — $ 503 |
ACCOUNTING FOR UNCERTAINTY IN33
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES | |
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): 2017 2016 2015 Gross unrecognized tax benefits beginning of year $ 3,381 $ 2,209 $ 1,793 Increase in tax positions for prior years 4 243 — Increase in tax positions due to acquisitions — 362 — Increase in tax positions for current year 1,107 905 754 Settlements with taxing authorities (2) (32) — Lapse in statute of limitations (490) (306) (338) Gross unrecognized tax benefits end of year $ 4,000 $ 3,381 $ 2,209 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
SEGMENT REPORTING | |
Segment Reporting | 2017 All North South West Other Corporate Total Net sales to outside customers $ 1,133,656 $ 837,370 $ 1,417,924 $ 552,232 $ — $ 3,941,182 Intersegment net sales 67,161 74,566 83,245 167,568 — 392,540 Interest expense (income) 4 160 293 (473) 6,234 6,218 Amortization expense 559 607 1,723 1,971 — 4,860 Depreciation expense 10,511 6,880 14,116 8,586 8,443 48,536 Segment earnings from operations 61,326 46,646 82,465 17,296 (26,264) 181,469 Segment assets 351,270 240,661 462,311 356,264 54,171 1,464,677 Capital expenditures 23,026 12,286 23,212 9,865 2,727 71,116 2016 All North South West Other Corporate Total Net sales to outside customers $ 1,000,426 $ 711,862 $ 1,251,093 $ 277,112 $ — $ 3,240,493 Intersegment net sales 57,770 38,641 88,311 19,322 — 204,044 Interest expense 1 307 387 143 3,737 4,575 Amortization expense 115 — 1,858 822 — 2,795 Depreciation expense 8,948 6,190 13,326 4,531 7,828 40,823 Segment earnings from operations 59,408 47,146 76,875 16,639 (35,630) 164,438 Segment assets 302,009 192,085 438,674 313,304 45,986 1,292,058 Capital expenditures 10,902 5,571 19,648 6,037 11,604 53,762 2015 All North South West Other Corporate Total Net sales to outside customers $ 922,092 $ 656,550 $ 1,133,398 $ 175,031 $ — $ 2,887,071 Intersegment net sales 51,796 29,940 58,412 13,673 — 153,821 Interest expense — 296 516 52 4,269 5,133 Amortization expense 267 9 2,467 788 — 3,531 Depreciation expense 7,901 6,255 13,033 3,707 6,814 37,710 Segment earnings from operations 53,879 30,740 70,220 3,038 (22,410) 135,467 Segment assets 279,664 192,756 382,251 152,527 100,481 1,107,679 Capital expenditures 9,622 6,138 13,356 6,698 7,708 43,522 |
Information Regarding Principal Geographic Areas | Information regarding principal geographic areas was as follows (in thousands): 2017 2016 2015 Long-Lived Long-Lived Long-Lived Tangible Tangible Tangible Net Sales Assets Net Sales Assets Net Sales Assets United States $ 3,821,366 $ 313,976 $ 3,162,331 $ 280,362 $ 2,811,359 $ 244,040 Foreign 119,816 30,380 78,162 26,106 75,712 15,408 Total $ 3,941,182 $ 344,356 $ 3,240,493 $ 306,468 $ 2,887,071 $ 259,448 |
Percentage of Value-added and Commodity-based Sales to Total Sales | Value-Added Commodity-Based 2017 % % 2016 % % 2015 % % |
Gross Sales by Major Product Classification | The following table presents, for the periods indicated, our gross sales (in thousands) by major product classification. Year Ended December 30, December 31, December 26, 2017 2016 2015 Value-Added Sales Trusses – residential, modular and manufactured housing $ 368,591 $ 334,956 $ 299,111 Fencing 187,905 176,668 149,526 Decking and railing – composite, wood and other 244,910 200,004 177,787 Turn-key framing and installed sales 149,520 141,474 129,803 Industrial packaging and components 471,262 391,610 374,030 Engineered wood products (eg. LVL; i-joist) 76,507 76,503 67,804 In-store fixtures 260,174 87,262 — Manufactured brite and other lumber 78,638 68,517 59,804 Wall panels 61,226 53,279 46,496 Outdoor DIY products (eg. stakes; landscape ties) 110,327 106,284 56,846 Construction and building materials (eg. door packages; drywall) 265,048 204,732 200,901 Lattice – plastic and wood 48,736 50,556 47,392 Manufactured brite and other panels 75,742 60,753 57,999 Siding, trim and moulding 85,016 66,048 45,215 Hardware 21,218 20,713 17,123 Manufactured treated lumber 17,584 17,412 13,611 Manufactured treated panels 3,329 3,449 5,353 Other 9,275 7,518 5,668 Total Value-Added Sales $ 2,535,008 $ 2,067,738 $ 1,754,469 Commodity-Based Sales Non-manufactured brite and other lumber 576,374 469,042 458,023 Non-manufactured treated lumber 575,505 479,333 423,543 Non-manufactured brite and other panels 271,310 238,806 253,678 Non-manufactured treated panels 34,970 30,374 31,789 Other 13,036 12,084 10,978 Total Commodity-Based Sales $ 1,471,195 $ 1,229,639 $ 1,178,011 Total Gross Sales $ 4,006,203 $ 3,297,377 $ 2,932,480 Sales allowances (65,021) (56,884) (45,409) Total Net Sales $ 3,941,182 $ 3,240,493 $ 2,887,071 |
QUARTERLY FINANCIAL INFORMATI35
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 30, 2017 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
Quarterly Financial Information | The following table sets forth selected financial information for all of the quarters, consisting of 13 and 14 weeks during the years ended December 30, 2017 and December 31, 2016, respectively, (in thousands, except per share data): First Second Third Fourth 2017 2016 2017 2016 2017 2016 2017 2016 Net sales $ 846,130 $ 682,151 $ 1,072,375 $ 872,093 $ 1,056,586 $ 826,665 $ 966,091 $ 859,584 Gross profit 120,740 102,739 148,240 131,487 144,687 118,054 129,159 122,310 Net earnings 21,634 20,255 34,574 34,237 34,669 28,764 33,162 22,241 Net earnings attributable to controlling interest 21,062 19,212 33,642 33,398 33,693 27,819 31,115 20,750 Basic earnings per share 0.34 0.32 0.55 0.55 0.55 0.45 0.51 0.34 Diluted earnings per share 0.34 0.32 0.55 0.55 0.55 0.45 0.51 0.34 |
SUMMARY OF SIGNIFICANT ACCOUN36
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 30, 2017USD ($)contractshares | Dec. 31, 2016USD ($)shares | Dec. 26, 2015shares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Requisite ownership to consolidate (in hundredths) (or more) | 50.00% | ||
Length of fiscal year | 364 days | 371 days | 364 days |
Additional sales due to additional week in fiscal year | $ 60 | ||
Amount required to be held for loss funding | 0.5 | $ 0.4 | |
Accounts receivable retainage | $ 4.8 | 6 | |
Accounts receivable retainage, collection period | 18 months | ||
Concentration of accounts receivable related to largest customer | $ 55.9 | 34 | |
Inventory on consignment | $ 14.8 | 12.2 | |
Number of insurance contracts with third party by Ardellis | contract | 30 | ||
Reserve associated with contracts to third party by Ardellis | $ 3.4 | $ 2.5 | |
Construction contracts completion term, minimum | 6 months | ||
Construction contracts completion term, maximum | 18 months | ||
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Options to purchase shares excluded from computation of EPS (in shares) | shares | 0 | 0 | 0 |
Minimum | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Length of fiscal year | 364 days | ||
Maximum | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Length of fiscal year | 371 days |
SUMMARY OF SIGNIFICANT ACCOUN37
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accounts Receivable Allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ 2,845 | $ 2,672 | $ 2,390 |
Additions Charged to Costs and Expenses | 28,102 | 28,405 | 20,538 |
Deductions | (28,523) | (28,232) | (20,256) |
Ending Balance | $ 2,424 | $ 2,845 | $ 2,672 |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Lives of Property, Plant, and Equipment (Details) | 12 Months Ended |
Dec. 30, 2017 | |
Land Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Land Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 15 years |
Building and Improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Building and Improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 32 years |
Machinery, Equipment and Office Furniture | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Machinery, Equipment and Office Furniture | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 8 years |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Percentage of Completion Account Balances (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Cost and Earnings in Excess of Billings | $ 5,005 | $ 2,573 |
Billings in Excess of Cost and Earnings | $ 4,435 | $ 4,748 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Computation of Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Nov. 14, 2017 | Dec. 30, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Jul. 01, 2017USD ($)$ / shares | Apr. 01, 2017USD ($)$ / shares | Dec. 31, 2016USD ($)$ / shares | Sep. 24, 2016USD ($)$ / shares | Jun. 25, 2016USD ($)$ / shares | Mar. 26, 2016USD ($)$ / shares | Dec. 30, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 26, 2015USD ($)$ / sharesshares |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||
Stock split ratio | 3 | |||||||||||
Numerator: | ||||||||||||
Net earnings attributable to controlling interest | $ | $ 31,115 | $ 33,693 | $ 33,642 | $ 21,062 | $ 20,750 | $ 27,819 | $ 33,398 | $ 19,212 | $ 119,512 | $ 101,179 | $ 80,595 | |
Adjustment for earnings allocated to non-vested restricted common stock | $ | (2,225) | (1,595) | (1,059) | |||||||||
Net earnings for calculating EPS | $ | $ 117,287 | $ 99,584 | $ 79,536 | |||||||||
Denominator: | ||||||||||||
Weighted average shares outstanding (in shares) | 61,416 | 61,089 | 60,552 | |||||||||
Adjustment for non-vested restricted common stock (in shares) | (1,143) | (963) | (795) | |||||||||
Shares for calculating basic EPS (in shares) | 60,273 | 60,126 | 59,757 | |||||||||
Effect of dilutive stock options (in shares) | 90 | 99 | 108 | |||||||||
Shares for calculating diluted EPS (in shares) | 60,363 | 60,225 | 59,865 | |||||||||
Net earnings per share | ||||||||||||
Basic (USD per share) | $ / shares | $ 0.51 | $ 0.55 | $ 0.55 | $ 0.34 | $ 0.34 | $ 0.45 | $ 0.55 | $ 0.32 | $ 1.95 | $ 1.66 | $ 1.33 | |
Diluted (USD per share) | $ / shares | $ 0.51 | $ 0.55 | $ 0.55 | $ 0.34 | $ 0.34 | $ 0.45 | $ 0.55 | $ 0.32 | $ 1.94 | $ 1.65 | $ 1.33 |
FAIR VALUE - Asset Measured at
FAIR VALUE - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Fixed Income | Restricted Investments | ||
Fair Value | ||
Securities transferred to collateral trust account | $ 4,100 | |
Securities purchased and held in the collateral trust account | 4,100 | |
Estimate of Fair Value Measurement | Recurring | ||
Fair Value | ||
Investments at fair value | 22,938 | $ 11,387 |
Assets at fair value | 22,938 | 11,387 |
Estimate of Fair Value Measurement | Recurring | Money market funds | ||
Fair Value | ||
Investments at fair value | 3,135 | 242 |
Estimate of Fair Value Measurement | Recurring | Fixed Income | ||
Fair Value | ||
Investments at fair value | 8,156 | 4,268 |
Estimate of Fair Value Measurement | Recurring | Equity | ||
Fair Value | ||
Investments at fair value | 10,710 | 5,609 |
Estimate of Fair Value Measurement | Recurring | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 937 | 1,268 |
Estimate of Fair Value Measurement | Recurring | Domestic stock funds | ||
Fair Value | ||
Investments at fair value | 367 | 760 |
Estimate of Fair Value Measurement | Recurring | International stock funds | ||
Fair Value | ||
Investments at fair value | 91 | 72 |
Estimate of Fair Value Measurement | Recurring | Target funds | ||
Fair Value | ||
Investments at fair value | 270 | 235 |
Estimate of Fair Value Measurement | Recurring | Bond funds | ||
Fair Value | ||
Investments at fair value | 209 | 201 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | ||
Fair Value | ||
Investments at fair value | 12,893 | 8,617 |
Assets at fair value | 12,893 | 8,617 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Money market funds | ||
Fair Value | ||
Investments at fair value | 64 | 64 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Fixed Income | ||
Fair Value | ||
Investments at fair value | 1,182 | 1,676 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Equity | ||
Fair Value | ||
Investments at fair value | 10,710 | 5,609 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 937 | 1,268 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Domestic stock funds | ||
Fair Value | ||
Investments at fair value | 367 | 760 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | International stock funds | ||
Fair Value | ||
Investments at fair value | 91 | 72 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Target funds | ||
Fair Value | ||
Investments at fair value | 270 | 235 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Bond funds | ||
Fair Value | ||
Investments at fair value | 209 | 201 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | ||
Fair Value | ||
Investments at fair value | 10,045 | 2,770 |
Assets at fair value | 10,045 | 2,770 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value | ||
Investments at fair value | 3,071 | 178 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Fixed Income | ||
Fair Value | ||
Investments at fair value | $ 6,974 | $ 2,592 |
FAIR VALUE - Available for Sale
FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Available-for-sale securities | ||
Cost | $ 17,355 | $ 9,972 |
Unrealized Gain (Loss) | 1,510 | 376 |
Fair Value | 18,865 | 10,348 |
Interest Income | ||
Available-for-sale securities | ||
Realized Gain | 256 | |
Fixed Income | ||
Available-for-sale securities | ||
Cost | 8,170 | 4,310 |
Unrealized Gain (Loss) | (14) | (43) |
Fair Value | 8,156 | 4,267 |
Equity | ||
Available-for-sale securities | ||
Cost | 9,185 | 5,181 |
Unrealized Gain (Loss) | 1,524 | 428 |
Fair Value | $ 10,709 | 5,609 |
Mutual Fund | ||
Available-for-sale securities | ||
Cost | 481 | |
Unrealized Gain (Loss) | (9) | |
Fair Value | $ 472 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Oct. 03, 2017 | May 26, 2017 | Mar. 06, 2017 | Nov. 29, 2016 | Sep. 16, 2016 | Jul. 29, 2016 | Jun. 30, 2016 | Apr. 15, 2016 | Nov. 24, 2014 | Dec. 31, 2016 | Dec. 26, 2015 |
Business Acquisition | |||||||||||
Repayments of debt of acquiree | $ 92,830 | ||||||||||
Payments for minority asset purchase | $ 892 | $ 1,256 | |||||||||
Silverwater Box | All Other | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 931 | ||||||||||
Intangible Assets | 909 | ||||||||||
Net Tangible Assets | 22 | ||||||||||
Acquired entity, prior year sales | $ 2,800 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Go Boy Pallets LLLC (Go Boy) | South | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 5,042 | ||||||||||
Intangible Assets | 4,880 | ||||||||||
Net Tangible Assets | 162 | ||||||||||
Acquired entity, prior year sales | $ 8,000 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Robbins Manufacturing Co. (Robbins) | South | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 31,818 | ||||||||||
Intangible Assets | 7,653 | ||||||||||
Net Tangible Assets | 24,165 | ||||||||||
Acquired entity, prior year sales | $ 86,000 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Quality Hardwood Sales, LLC (Quality) | North | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 22,789 | ||||||||||
Acquired entity, prior year sales | $ 30,000 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
The UBEECO Group Pty. Ltd. (Ubeeco) | All Other | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 9,449 | ||||||||||
Acquired entity, prior year sales | $ 20,000 | ||||||||||
Percentage of stock purchase (as a percent) | 100.00% | ||||||||||
idX Holdings, Inc. (idX) | All Other | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 66,691 | ||||||||||
Cash received | 11,337 | ||||||||||
Repayments of debt of acquiree | 86,294 | ||||||||||
Consideration transferred for certain other obligations | 6,536 | ||||||||||
Intangible Assets | 14,341 | ||||||||||
Net Tangible Assets | 8,448 | ||||||||||
Acquired entity, prior year sales | $ 300,000 | ||||||||||
Percentage of stock purchase (as a percent) | 100.00% | ||||||||||
Seven D Truss, L.P. | North | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 1,246 | ||||||||||
Acquired entity, prior year sales | $ 4 | ||||||||||
Idaho Western, Inc. (IWI) | West | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 10,787 | ||||||||||
Purchase price, holdback | 500 | ||||||||||
Acquired entity, prior year sales | $ 21 | ||||||||||
Percentage of stock purchase (as a percent) | 100.00% | ||||||||||
Packnet Ltd ("Packnet") | West | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 7,506 | ||||||||||
Payments for minority asset purchase | $ 1,877 | ||||||||||
Intangible Assets | 405 | ||||||||||
Net Tangible Assets | 841 | ||||||||||
Acquired entity, prior year sales | 9,600 | ||||||||||
Capital Components & Millwork, Inc. (CCM) | North | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | 1,682 | ||||||||||
Assumed liability | 205 | ||||||||||
Intangible Assets | 6,817 | ||||||||||
Net Tangible Assets | 4,248 | ||||||||||
Acquired entity, prior year sales | $ 16,600 |
BUSINESS COMBINATIONS - Acquire
BUSINESS COMBINATIONS - Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 |
Business Acquisition | |||
GOODWILL | $ 212,644 | $ 198,535 | $ 180,990 |
Silverwater Box | |||
Business Acquisition | |||
GOODWILL | 909 | ||
Go Boy Pallets LLLC (Go Boy) | |||
Business Acquisition | |||
Goodwill - Tax Deductible | 4,880 | ||
Robbins Manufacturing Co. (Robbins) | |||
Business Acquisition | |||
GOODWILL | 3,113 | ||
Goodwill - Tax Deductible | 7,653 | ||
Quality Hardwood Sales, LLC (Quality) | |||
Business Acquisition | |||
GOODWILL | 7,391 | ||
Goodwill - Tax Deductible | 14,341 | ||
The UBEECO Group Pty. Ltd. (Ubeeco) | |||
Business Acquisition | |||
GOODWILL | 3,948 | ||
idX Holdings, Inc. (idX) | |||
Business Acquisition | |||
GOODWILL | 10,325 | ||
Seven D Truss, L.P. | |||
Business Acquisition | |||
Goodwill - Tax Deductible | 405 | ||
Idaho Western, Inc. (IWI) | |||
Business Acquisition | |||
GOODWILL | 3,177 | ||
Non-compete agreements | Go Boy Pallets LLLC (Go Boy) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 225 | ||
Non-compete agreements | Robbins Manufacturing Co. (Robbins) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 560 | ||
Non-compete agreements | Quality Hardwood Sales, LLC (Quality) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 830 | ||
Non-compete agreements | The UBEECO Group Pty. Ltd. (Ubeeco) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 183 | ||
Non-compete agreements | idX Holdings, Inc. (idX) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 2,630 | ||
Non-compete agreements | Seven D Truss, L.P. | |||
Business Acquisition | |||
Intangible assets other than goodwill | 405 | ||
Customer relationships | Go Boy Pallets LLLC (Go Boy) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 4,655 | ||
Customer relationships | Robbins Manufacturing Co. (Robbins) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 3,530 | ||
Customer relationships | Quality Hardwood Sales, LLC (Quality) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 5,720 | ||
Customer relationships | The UBEECO Group Pty. Ltd. (Ubeeco) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 3,847 | ||
Customer relationships | Idaho Western, Inc. (IWI) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 2,570 | ||
Tradename | Robbins Manufacturing Co. (Robbins) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 450 | ||
Tradename | Quality Hardwood Sales, LLC (Quality) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 400 | ||
Tradename | The UBEECO Group Pty. Ltd. (Ubeeco) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 575 | ||
Tradename | idX Holdings, Inc. (idX) | |||
Business Acquisition | |||
Intangible assets other than goodwill | 4,500 | ||
Tradename | Idaho Western, Inc. (IWI) | |||
Business Acquisition | |||
Intangible assets other than goodwill | $ 1,070 |
GOODWILL AND OTHER INTANGIBLE45
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
Indefinite-lived intangible assets | 7,415 | 2,340 | |
Amortization of intangibles | $ 4,860 | $ 2,795 | $ 3,531 |
GOODWILL AND OTHER INTANGIBLE46
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Reporting Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill | ||
Goodwill, Beginning Balance | $ 198,535 | $ 180,990 |
Acquisitions | 11,413 | 17,506 |
Foreign Exchange, Net | 2,696 | 39 |
Goodwill, Ending Balance | 212,644 | 198,535 |
North | ||
Goodwill | ||
Goodwill, Beginning Balance | 43,386 | 43,253 |
Acquisitions | 7,391 | |
Foreign Exchange, Net | 350 | 133 |
Goodwill, Ending Balance | 51,127 | 43,386 |
South | ||
Goodwill | ||
Goodwill, Beginning Balance | 43,625 | 43,625 |
Acquisitions | 3,113 | |
Goodwill, Ending Balance | 46,738 | 43,625 |
West | ||
Goodwill | ||
Goodwill, Beginning Balance | 87,730 | 84,553 |
Acquisitions | 3,177 | |
Goodwill, Ending Balance | 87,730 | 87,730 |
All Other | ||
Goodwill | ||
Goodwill, Beginning Balance | 23,794 | 9,559 |
Acquisitions | 909 | 14,329 |
Foreign Exchange, Net | 2,346 | (94) |
Goodwill, Ending Balance | $ 27,049 | $ 23,794 |
GOODWILL AND OTHER INTANGIBLE47
GOODWILL AND OTHER INTANGIBLE ASSETS - Included in Other Amortizable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets | ||
Assets | $ 49,272 | $ 36,207 |
Accumulated Amortization | (14,362) | (9,476) |
Non-compete agreements | ||
Finite-Lived Intangible Assets | ||
Assets | 9,841 | 5,411 |
Accumulated Amortization | (4,208) | (1,954) |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Assets | 31,630 | 25,503 |
Accumulated Amortization | (5,986) | (4,351) |
Licensing agreements | ||
Finite-Lived Intangible Assets | ||
Assets | 4,589 | 4,589 |
Accumulated Amortization | (3,450) | (2,991) |
Patents | ||
Finite-Lived Intangible Assets | ||
Assets | 792 | 704 |
Accumulated Amortization | (254) | $ (180) |
Tradename | ||
Finite-Lived Intangible Assets | ||
Assets | 2,420 | |
Accumulated Amortization | $ (464) |
GOODWILL AND OTHER INTANGIBLE48
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Useful Lives of Intangible Assets (Details) | 12 Months Ended |
Dec. 30, 2017 | |
Non-compete agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 7 years 1 month 6 days |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 13 years 6 months |
Licensing agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 10 years |
Weighted average amortization period | 10 years |
Tradename | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Weighted average amortization period | 12 years 10 months 24 days |
Minimum | Non-compete agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Minimum | Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Minimum | Tradename | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 5 years |
Maximum | Non-compete agreements | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 15 years |
Maximum | Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 15 years |
Maximum | Tradename | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated useful life | 15 years |
GOODWILL AND OTHER INTANGIBLE49
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense for Intangibles (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,018 | $ 4,879 | |
2,019 | 4,264 | |
2,020 | 3,234 | |
2,021 | 2,979 | |
2,022 | 2,676 | |
Thereafter | 16,878 | |
Finite-Lived Intangible Assets, Net, Total | $ 34,910 | $ 26,731 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) $ in Millions | Nov. 03, 2014 | Dec. 30, 2017 | Dec. 31, 2016 | Nov. 02, 2014 | Dec. 17, 2012 |
Debt | |||||
Outstanding letters of credit | $ 26.5 | $ 25.5 | |||
Fair value of long-term debt including current portion | 148 | ||||
Difference between fair value and carrying value of debt | 1.8 | ||||
Revolving Credit Facility | |||||
Debt | |||||
Term of debt | 5 years | ||||
Maximum borrowing capacity | $ 295 | 295 | $ 265 | ||
Outstanding letters of credit | 45 | ||||
Outstanding letters of credit that can be converted to foreign currency | $ 100 | ||||
Remaining borrowing capacity | $ 225.7 | $ 261.3 | |||
Revolving Credit Facility | Minimum | |||||
Debt | |||||
Facility fee (in hundredths) | 0.15% | ||||
Revolving Credit Facility | Maximum | |||||
Debt | |||||
Facility fee (in hundredths) | 0.325% | ||||
Series 2012 Senior Notes Tranche A | Senior Notes | |||||
Debt | |||||
Interest rate (in hundredths) | 3.89% | 3.89% | |||
Debt | $ 35 | ||||
Series 2012 Senior Notes Tranche B | Senior Notes | |||||
Debt | |||||
Interest rate (in hundredths) | 3.98% | 3.98% | |||
Debt | $ 40 | ||||
Series 2002-A Senior Notes Tranche B | Corporate Debt Securities | |||||
Debt | |||||
Debt | $ 40 | ||||
Shelf Agreement | |||||
Debt | |||||
Remaining borrowing capacity | $ 150 | ||||
Letter of Credit | |||||
Debt | |||||
Interest rate (in hundredths) | 0.75% | ||||
Term of debt | 1 year | ||||
Letter of Credit | Industrial Development Revenue Bonds | |||||
Debt | |||||
Outstanding letters of credit | $ 9.8 | ||||
Letter of Credit | Industrial Development Revenue Bonds | Minimum | |||||
Debt | |||||
Interest rate (in hundredths) | 1.10% |
DEBT - Long-term Debt Obligatio
DEBT - Long-term Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 | Nov. 03, 2014 | Nov. 02, 2014 | Dec. 17, 2012 |
Debt | |||||
Total | $ 146,180 | $ 111,896 | |||
Less current portion | (1,329) | (2,634) | |||
Less debt issuance costs | (177) | (203) | |||
Long-term portion | 144,674 | 109,059 | |||
Foreign Affiliate Debt | |||||
Debt | |||||
Total | 2,058 | 3,336 | |||
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 | |||||
Total | $ 59,422 | $ 23,860 | |||
Maximum borrowing capacity | $ 295,000 | $ 295,000 | $ 265,000 | ||
Interest rate at period end (in hundredths) | 2.41% | 1.67% | |||
Corporate Debt Securities | Series 1999 Industrial Development Revenue Bonds | |||||
Debt | |||||
Total | $ 3,300 | $ 3,300 | |||
Interest rate at period end (in hundredths) | 0.52% | ||||
Corporate Debt Securities | Series 2000 Industrial Development Revenue Bonds | |||||
Debt | |||||
Total | $ 2,700 | $ 2,700 | |||
Interest rate at period end (in hundredths) | 1.14% | 0.59% | |||
Corporate Debt Securities | Series 2002 Industrial Development Revenue Bonds | |||||
Debt | |||||
Total | $ 3,700 | $ 3,700 | |||
Interest rate at period end (in hundredths) | 1.13% | 0.57% |
DEBT - Principal Maturities of
DEBT - Principal Maturities of Long-Term Debt and Capital Lease Obligations (Details) $ in Thousands | Dec. 30, 2017USD ($) |
Principal Maturities | |
2,018 | $ 1,329 |
2,019 | 59,737 |
2,020 | 2,891 |
2,021 | 135 |
2,022 | 38,788 |
Thereafter | 43,300 |
Total | $ 146,180 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Future minimum payments under non-cancelable operating leases [Abstract] | |||
2,018 | $ 19,405 | ||
2,019 | 13,187 | ||
2,020 | 9,967 | ||
2,021 | 7,778 | ||
2,022 | 5,947 | ||
Thereafter | 17,640 | ||
Total minimum lease payments | 73,924 | ||
Rent expense | $ 22,300 | $ 10,500 | $ 6,300 |
Minimum | |||
Operating Leased Assets | |||
Term of lease | 1 year | ||
Renewal options of lease | 5 years | ||
Minimum | Motor Vehicles, Equipment and Aircraft | |||
Operating Leased Assets | |||
Term of lease | 1 year | ||
Maximum | |||
Operating Leased Assets | |||
Term of lease | 10 years | ||
Renewal options of lease | 15 years | ||
Maximum | Motor Vehicles, Equipment and Aircraft | |||
Operating Leased Assets | |||
Term of lease | 10 years |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) $ in Millions | Dec. 30, 2017 | Dec. 31, 2016 |
Deferred compensation | ||
Assets held by the Plan | $ 1 | $ 0.9 |
Liabilities related to Plan | 22.6 | 17.4 |
Other Liabilities | ||
Deferred compensation | ||
Deferred compensation liability | 2 | 2.4 |
Other Assets | ||
Deferred compensation | ||
Cash surrender value of life insurance | $ 2 | $ 2.4 |
COMMON STOCK (Details)
COMMON STOCK (Details) $ in Thousands | Nov. 14, 2017 | Oct. 31, 2017item | Apr. 15, 2010shares | Dec. 30, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 26, 2015USD ($)shares | Oct. 14, 2010shares | Nov. 14, 2001shares |
Common stock | ||||||||
Stock split ratio | 3 | |||||||
Number of additional shares for each share held | item | 2 | |||||||
Income tax benefit from share-based compensation | $ | $ 1,000 | $ 1,100 | $ 900 | |||||
Cash received from option exercises and share issuances under plans | $ | 700 | $ 500 | 1,100 | |||||
Tax benefits from non-qualified stock options exercised | $ | $ 0 | $ 370 | ||||||
Stock Repurchase Program [Abstract] | ||||||||
Shares authorized for repurchase (in shares) | 2,000,000 | 2,500,000 | ||||||
Repurchase of shares (in shares) | 445,740 | 0 | 40,839 | |||||
Cumulative total authorized shares available for repurchase (in shares) | 2,700,000 | |||||||
Stock split ratio | 3 | |||||||
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 | $ | $ 1,700 | $ 700 | $ 600 | |||||
LTSIP | ||||||||
Common stock | ||||||||
Shares authorized for LTSIP (in shares) | 1,000,000 | |||||||
Unused shares from prior plans (in shares) | 1,600,000 | |||||||
Additional shares authorized per year, maximum (in shares) | 200,000 | |||||||
Stock Options | ||||||||
Common stock | ||||||||
Unrecognized compensation expense of stock options | $ | $ 0 | $ 0 | $ 0 |
COMMON STOCK - Nonvested Restri
COMMON STOCK - Nonvested Restricted Shares Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | Dec. 27, 2014 | |
Restricted Awards | ||||
Nonvested, beginning balance (in shares) | 791,532 | 623,748 | 771,258 | |
Granted (in shares) | 388,248 | 350,892 | 228,963 | |
Vested (in shares) | (141,111) | (180,465) | (364,926) | |
Forfeited (in shares) | (5,043) | (2,643) | (11,547) | |
Nonvested, ending balance (in shares) | 1,033,626 | 791,532 | 623,748 | 771,258 |
Weighted Average Grant Date Fair Value | ||||
Nonvested, beginning balance (in dollars per share) | $ 19.32 | $ 13.66 | $ 12.13 | |
Granted (in dollars per share) | 32.03 | 23.96 | 18 | |
Vested (in dollars per share) | 12.71 | 15.66 | 12.87 | |
Forfeited (in dollars per share) | 30.14 | 21.45 | 16.28 | |
Nonvested, ending balance (in dollars per share) | $ 24.24 | $ 19.32 | $ 13.66 | $ 12.13 |
Unrecognized Compensation Expense | ||||
Nonvested restricted awards, unrecognized compensation expense | $ 7.1 | $ 4.8 | $ 5.2 | $ 1.7 |
Nonvested restricted awards, weighted-average period to recognize expense | 1 year 3 months 22 days | 1 year 6 months 4 days | 2 years 6 months 11 days | 1 year 9 months 22 days |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution, percent (in hundredths) | 25.00% | ||
Defined contribution plan, cost recognized | $ 4.8 | $ 4.4 | $ 2.4 |
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 | ||
Percentage of officer's highest base salary (in hundredths) | 150.00% | ||
Years preceding separation from service | 3 years | ||
Other Liabilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liabilities related to Plan | $ 7.8 | $ 6.5 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Currently Payable: | |||
Federal | $ 44,413 | $ 42,397 | $ 34,672 |
State and local | 8,579 | 6,341 | 6,643 |
Foreign | 6,240 | 6,143 | 5,599 |
Total current payable | 59,232 | 54,881 | 46,914 |
Net Deferred: | |||
Federal | (7,681) | (455) | (1,104) |
State and local | (864) | 438 | 96 |
Foreign | 1,280 | 310 | (36) |
Total net deferred | (7,265) | 293 | (1,044) |
Income Tax Expense (Benefit), Total | $ 51,967 | $ 55,174 | $ 45,870 |
INCOME TAXES - Components of Ea
INCOME TAXES - Components of Earnings before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Components of earnings before income taxes [Abstract] | |||
U.S. | $ 151,395 | $ 140,106 | $ 115,231 |
Foreign | 24,612 | 20,565 | 15,771 |
Total. | $ 176,007 | $ 160,671 | $ 131,002 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Effective income tax rate reconciliation | |||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% |
State and local taxes (net of federal benefits) | 3.00% | 3.10% | 3.60% |
Effect of noncontrolling owned interest in earnings of partnerships | (0.20%) | (0.20%) | (0.30%) |
Manufacturing deduction | (2.50%) | (2.40%) | (2.40%) |
Tax credits, including foreign tax credit | (2.00%) | (1.40%) | (1.60%) |
Change in uncertain tax positions reserve | 0.40% | 0.40% | 0.30% |
Other permanent differences | (0.10%) | 0.10% | 0.70% |
Other, net | (0.60%) | (0.30%) | (0.30%) |
Impact of Tax Act and reduction of corporate tax rate | (3.50%) | ||
Effective income tax rate | 29.50% | 34.30% | 35.00% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Dec. 31, 2016 |
Deferred Tax Assets | ||
Employee benefits | $ 17,048 | $ 13,375 |
Net operating loss carryforwards | 8,592 | 13,605 |
Foreign subsidiary capital loss carryforward | 546 | 509 |
Other tax credits | 709 | 1,196 |
Inventory | 358 | 2 |
Reserves on receivables | 714 | 1,208 |
Accrued expenses | 2,060 | 8,931 |
Other, net | 1,879 | 2,323 |
Gross deferred income tax assets | 31,906 | 41,149 |
Valuation allowance | (4,706) | (5,371) |
Deferred income tax assets | 27,200 | 35,778 |
Deferred Tax Liabilities | ||
Depreciation | (19,992) | (29,971) |
Intangibles | (19,422) | (25,078) |
Deferred income tax liabilities | (39,414) | (55,049) |
Net deferred income tax liability | $ (12,214) | $ (19,271) |
INCOME TAXES - NOL and Credit C
INCOME TAXES - NOL and Credit Carryforwards (Details) $ in Thousands | Dec. 30, 2017USD ($) |
Operating Loss and Credit Carryforwards | |
Alternative minimum tax credit | $ 200 |
U.S. | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 3,431 |
U.S. | 2032 - 2036 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 3,431 |
State | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 2,575 |
Tax Credits | 503 |
State | 2017 - 2021 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 356 |
Tax Credits | 270 |
State | 2022 - 2026 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 391 |
Tax Credits | 233 |
State | 2027 - 2031 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 605 |
State | 2032 - 2036 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 804 |
State | Thereafter | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 419 |
Foreign | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 2,586 |
Foreign | 2017 - 2021 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 2,106 |
Foreign | 2022 - 2026 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 243 |
Foreign | 2027 - 2031 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 156 |
Foreign | Thereafter | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 81 |
Federal, state and foreign | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 8,600 |
Capital Loss Carryforward | |
Operating Loss and Credit Carryforwards | |
Tax credit carryforward, valuation allowance | $ 500 |
INCOME TAXES - Income tax refor
INCOME TAXES - Income tax reforms (Details) - USD ($) $ in Millions | Dec. 22, 2017 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 |
Provisional Effect of Tax Cuts and Jobs Act of 2017 | |||||
Period of time to pay one-time transition tax (in years) | 8 years | ||||
Discrete net tax benefit | $ 6.1 | ||||
Net benefit for the corporate rate reduction | 8.2 | ||||
Provisional decrease in deferred tax assets | 13.6 | ||||
Provisional decrease in deferred tax liabilities | 21.8 | ||||
Net expense for write-down of deferred tax assets for stock based compensation | 1.9 | ||||
Net expense for the transition tax | $ 0.2 | ||||
U.S. federal corporate tax rate | 35.00% | 35.00% | 35.00% | ||
Gross expense for the transition tax | $ 6.3 | ||||
Tax credits related to transition tax | 6.1 | ||||
Net benefit related to cost recovery | 0.1 | ||||
Decrease in income tax payable | 0.3 | ||||
Provisional increase in deferred tax liabilities related to cost recovery | $ 0.2 | ||||
Forecast | |||||
Provisional Effect of Tax Cuts and Jobs Act of 2017 | |||||
U.S. federal corporate tax rate | 21.00% |
ACCOUNTING FOR UNCERTAINTY IN64
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Reconciliation of beginning and ending amount of unrecognized tax benefits [Roll Forward] | |||
Gross unrecognized tax benefits beginning of year | $ 3,381 | $ 2,209 | $ 1,793 |
Increase in tax positions for prior years | 4 | 243 | |
Increase in tax positions due to acquisitions | 362 | ||
Increase in tax positions for current year | 1,107 | 905 | 754 |
Settlements with taxing authorities | (2) | (32) | |
Lapse in statute of limitations | (490) | (306) | (338) |
Gross unrecognized tax benefits end of year | 4,000 | 3,381 | 2,209 |
Income tax penalties and interest accrued | 700 | $ 600 | $ 200 |
Increase in unrecognized tax benefits is reasonably possible | $ 700 |
COMMITMENTS, CONTINGENCIES, A65
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
May 31, 2016item | Apr. 30, 2016employeeitem | Apr. 30, 2014employee | Feb. 28, 2014item | Dec. 30, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingencies | ||||||
Loss contingency, number of operations served with a federal grand jury subpoena | item | 1 | |||||
Loss contingency, number of employees terminated | employee | 2 | 2 | ||||
Loss contingency, number of employees pleading guilty to charges | employee | 1 | |||||
Number of charges former employee pled guilty | item | 4 | |||||
Number of charges former employee found guilty | item | 4 | |||||
Long-term commitment | ||||||
Outstanding purchase commitments on capital projects | $ 7.7 | |||||
Surety Bonds and Letters of Credit | ||||||
Outstanding letters of credit | 26.5 | $ 25.5 | ||||
Remediation reserves | ||||||
Estimated costs to complete future remediation efforts | 3 | $ 3.6 | ||||
Open Projects | ||||||
Surety Bonds and Letters of Credit | ||||||
Payment and performance bonds outstanding | 1.4 | |||||
Completed Projects | ||||||
Surety Bonds and Letters of Credit | ||||||
Payment and performance bonds outstanding | 7.6 | |||||
Insurance Contracts | ||||||
Surety Bonds and Letters of Credit | ||||||
Outstanding letters of credit | 16.7 | |||||
Revenue Bonds | ||||||
Surety Bonds and Letters of Credit | ||||||
Outstanding letters of credit | 9.8 | |||||
Other Long-term Liabilities | ||||||
Remediation reserves | ||||||
Approximate identification and removal of contaminants costs | $ 0.2 |
SEGMENT REPORTING - NARRATIVE (
SEGMENT REPORTING - NARRATIVE (Details) | Dec. 30, 2017item |
SEGMENT REPORTING | |
Number of markets in which the entity Operates (in markets) | 3 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Segment Reporting | |||||||||||
Net sales | $ 966,091 | $ 1,056,586 | $ 1,072,375 | $ 846,130 | $ 859,584 | $ 826,665 | $ 872,093 | $ 682,151 | $ 3,941,182 | $ 3,240,493 | $ 2,887,071 |
Interest Expense | 6,218 | 4,575 | 5,133 | ||||||||
Amortization | 4,860 | 2,795 | 3,531 | ||||||||
Depreciation | 48,536 | 40,823 | 37,710 | ||||||||
Segment operating profit | 181,469 | 164,438 | 135,467 | ||||||||
Segment assets | 1,464,677 | 1,292,058 | 1,464,677 | 1,292,058 | 1,107,679 | ||||||
Capital expenditures | 71,116 | 53,762 | 43,522 | ||||||||
Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
Net sales | 392,540 | 204,044 | 153,821 | ||||||||
Corporate | |||||||||||
Segment Reporting | |||||||||||
Interest Expense | 6,234 | 3,737 | 4,269 | ||||||||
Depreciation | 8,443 | 7,828 | 6,814 | ||||||||
Segment operating profit | (26,264) | (35,630) | (22,410) | ||||||||
Segment assets | 54,171 | 45,986 | 54,171 | 45,986 | 100,481 | ||||||
Capital expenditures | 2,727 | 11,604 | 7,708 | ||||||||
North | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
Net sales | 1,133,656 | 1,000,426 | 922,092 | ||||||||
Interest Expense | 4 | 1 | |||||||||
Amortization | 559 | 115 | 267 | ||||||||
Depreciation | 10,511 | 8,948 | 7,901 | ||||||||
Segment operating profit | 61,326 | 59,408 | 53,879 | ||||||||
Segment assets | 351,270 | 302,009 | 351,270 | 302,009 | 279,664 | ||||||
Capital expenditures | 23,026 | 10,902 | 9,622 | ||||||||
North | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
Net sales | 67,161 | 57,770 | 51,796 | ||||||||
South | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
Net sales | 837,370 | 711,862 | 656,550 | ||||||||
Interest Expense | 160 | 307 | 296 | ||||||||
Amortization | 607 | 9 | |||||||||
Depreciation | 6,880 | 6,190 | 6,255 | ||||||||
Segment operating profit | 46,646 | 47,146 | 30,740 | ||||||||
Segment assets | 240,661 | 192,085 | 240,661 | 192,085 | 192,756 | ||||||
Capital expenditures | 12,286 | 5,571 | 6,138 | ||||||||
South | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
Net sales | 74,566 | 38,641 | 29,940 | ||||||||
West | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
Net sales | 1,417,924 | 1,251,093 | 1,133,398 | ||||||||
Interest Expense | 293 | 387 | 516 | ||||||||
Amortization | 1,723 | 1,858 | 2,467 | ||||||||
Depreciation | 14,116 | 13,326 | 13,033 | ||||||||
Segment operating profit | 82,465 | 76,875 | 70,220 | ||||||||
Segment assets | 462,311 | 438,674 | 462,311 | 438,674 | 382,251 | ||||||
Capital expenditures | 23,212 | 19,648 | 13,356 | ||||||||
West | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
Net sales | 83,245 | 88,311 | 58,412 | ||||||||
All Other | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
Net sales | 552,232 | 277,112 | 175,031 | ||||||||
Interest Expense | (473) | 143 | 52 | ||||||||
Amortization | 1,971 | 822 | 788 | ||||||||
Depreciation | 8,586 | 4,531 | 3,707 | ||||||||
Segment operating profit | 17,296 | 16,639 | 3,038 | ||||||||
Segment assets | $ 356,264 | $ 313,304 | 356,264 | 313,304 | 152,527 | ||||||
Capital expenditures | 9,865 | 6,037 | 6,698 | ||||||||
All Other | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
Net sales | $ 167,568 | $ 19,322 | $ 13,673 |
SEGMENT REPORTING - Information
SEGMENT REPORTING - Information Regarding Principal Geographic Areas (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Revenues and Long-Lived Assets | |||
Net Sales | $ 3,941,182 | $ 3,240,493 | $ 2,887,071 |
Long-Lived Tangible Assets | 344,356 | 306,468 | 259,448 |
United States | |||
Revenues and Long-Lived Assets | |||
Net Sales | 3,821,366 | 3,162,331 | 2,811,359 |
Long-Lived Tangible Assets | 313,976 | 280,362 | 244,040 |
Foreign | |||
Revenues and Long-Lived Assets | |||
Net Sales | 119,816 | 78,162 | 75,712 |
Long-Lived Tangible Assets | $ 30,380 | $ 26,106 | $ 15,408 |
SEGMENT REPORTING - Percentage
SEGMENT REPORTING - Percentage of Value-added and Commodity-based Sales to Total Sales and Gross Sales by Major Product Classification (Details) | 12 Months Ended | ||
Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Value-Added | |||
Revenue | |||
Percentage of sales (in hundredths) | 63.30% | 62.60% | 59.80% |
Commodity-Based | |||
Revenue | |||
Percentage of sales (in hundredths) | 36.70% | 37.40% | 40.20% |
SEGMENT REPORTING - Gross Sales
SEGMENT REPORTING - Gross Sales by Major Product Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
Revenue | |||||||||||
Total Gross Sales | $ 4,006,203 | $ 3,297,377 | $ 2,932,480 | ||||||||
Sales allowances | (65,021) | (56,884) | (45,409) | ||||||||
Revenue, Net, Total | $ 966,091 | $ 1,056,586 | $ 1,072,375 | $ 846,130 | $ 859,584 | $ 826,665 | $ 872,093 | $ 682,151 | 3,941,182 | 3,240,493 | 2,887,071 |
Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 2,535,008 | 2,067,738 | 1,754,469 | ||||||||
Commodity-Based | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 1,471,195 | 1,229,639 | 1,178,011 | ||||||||
Trusses - residential, modular and manufactured housing | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 368,591 | 334,956 | 299,111 | ||||||||
Fencing | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 187,905 | 176,668 | 149,526 | ||||||||
Decking and railing - composite, wood and other | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 244,910 | 200,004 | 177,787 | ||||||||
Turn-key framing and installed sales | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 149,520 | 141,474 | 129,803 | ||||||||
Industrial packaging and components | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 471,262 | 391,610 | 374,030 | ||||||||
Engineered wood products (eg. LVL; i-joist) | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 76,507 | 76,503 | 67,804 | ||||||||
In-store fixtures | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 260,174 | 87,262 | |||||||||
Manufactured brite and other lumber | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 78,638 | 68,517 | 59,804 | ||||||||
Wall panels | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 61,226 | 53,279 | 46,496 | ||||||||
Outdoor DIY products (eg. stakes; landscape ties) | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 110,327 | 106,284 | 56,846 | ||||||||
Construction and building materials (eg. door packages; drywall) | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 265,048 | 204,732 | 200,901 | ||||||||
Lattice - plastic and wood | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 48,736 | 50,556 | 47,392 | ||||||||
Manufactured brite and other panels | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 75,742 | 60,753 | 57,999 | ||||||||
Siding, trim and moulding | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 85,016 | 66,048 | 45,215 | ||||||||
Hardware | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 21,218 | 20,713 | 17,123 | ||||||||
Manufactured treated lumber | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 17,584 | 17,412 | 13,611 | ||||||||
Manufactured treated panels | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 3,329 | 3,449 | 5,353 | ||||||||
Other | Value-Added | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 9,275 | 7,518 | 5,668 | ||||||||
Other | Commodity-Based | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 13,036 | 12,084 | 10,978 | ||||||||
Non-manufactured brite and other lumber | Commodity-Based | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 576,374 | 469,042 | 458,023 | ||||||||
Non-manufactured treated lumber | Commodity-Based | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 575,505 | 479,333 | 423,543 | ||||||||
Non-manufactured brite and other panels | Commodity-Based | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 271,310 | 238,806 | 253,678 | ||||||||
Non-manufactured treated panels | Commodity-Based | |||||||||||
Revenue | |||||||||||
Total Gross Sales | $ 34,970 | $ 30,374 | $ 31,789 |
QUARTERLY FINANCIAL INFORMATI71
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2017 | Sep. 30, 2017 | Jul. 01, 2017 | Apr. 01, 2017 | Dec. 31, 2016 | Sep. 24, 2016 | Jun. 25, 2016 | Mar. 26, 2016 | Dec. 30, 2017 | Dec. 31, 2016 | Dec. 26, 2015 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Net sales | $ 966,091 | $ 1,056,586 | $ 1,072,375 | $ 846,130 | $ 859,584 | $ 826,665 | $ 872,093 | $ 682,151 | $ 3,941,182 | $ 3,240,493 | $ 2,887,071 |
Gross profit | 129,159 | 144,687 | 148,240 | 120,740 | 122,310 | 118,054 | 131,487 | 102,739 | 542,826 | 474,590 | 399,904 |
Net earnings | 33,162 | 34,669 | 34,574 | 21,634 | 22,241 | 28,764 | 34,237 | 20,255 | 124,040 | 105,497 | 85,132 |
Net earnings attributable to controlling interest | $ 31,115 | $ 33,693 | $ 33,642 | $ 21,062 | $ 20,750 | $ 27,819 | $ 33,398 | $ 19,212 | $ 119,512 | $ 101,179 | $ 80,595 |
EARNINGS PER SHARE - BASIC (USD per share) | $ 0.51 | $ 0.55 | $ 0.55 | $ 0.34 | $ 0.34 | $ 0.45 | $ 0.55 | $ 0.32 | $ 1.95 | $ 1.66 | $ 1.33 |
EARNINGS PER SHARE - DILUTED (USD per share) | $ 0.51 | $ 0.55 | $ 0.55 | $ 0.34 | $ 0.34 | $ 0.45 | $ 0.55 | $ 0.32 | $ 1.94 | $ 1.65 | $ 1.33 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Millions | Mar. 06, 2017item | Feb. 28, 2018USD ($) | Dec. 30, 2017item |
Subsequent Event | |||
Number of operations | item | 3 | ||
Robbins Manufacturing Co. (Robbins) | |||
Subsequent Event | |||
Number of operations | item | 2 | ||
Subsequent Event | Medley Florida Property | |||
Subsequent Event | |||
Sale price of sale leaseback property | $ | $ 36 | ||
Gain (loss) on sale of sale and lease-back property | $ | $ 7 | ||
Length of lease (in years) | 2 years |