UFP Industries (UFPI) 10-Q 2 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2018shares
Document and Entity Information [Abstract]
Entity Registrant Name	UNIVERSAL FOREST PRODUCTS INC
Entity Central Index Key	912,767
Current Fiscal Year End Date	--12-29
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)	61,543,902
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 30, 2017	Apr. 01, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 25,326	$ 28,339	$ 31,020
Restricted cash	32,425	477	909
Investments	10,701	11,269	5,928
Accounts receivable, net	430,251	327,751	365,620
Inventories:
Raw materials	261,808	234,354	232,647
Finished goods	259,898	225,954	239,369
Total inventories	521,706	460,308	472,016
Refundable income taxes		7,228	3,170
Other current assets	23,304	28,115	20,650
TOTAL CURRENT ASSETS	1,043,713	863,487	899,313
DEFERRED INCOME TAXES	2,273	1,865	1,960
RESTRICTED INVESTMENTS	10,238	8,359	3,800
OTHER ASSETS	7,123	7,368	12,573
GOODWILL	212,596	212,644	211,061
INDEFINITE-LIVED INTANGIBLE ASSETS	7,407	7,415	2,340
OTHER INTANGIBLE ASSETS, NET	34,543	34,910	36,759
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment	754,603	763,101	720,912
Less accumulated depreciation and amortization	(441,032)	(434,472)	(411,059)
PROPERTY, PLANT AND EQUIPMENT, NET	313,571	328,629	309,853
TOTAL ASSETS	1,631,464	1,464,677	1,477,659
CURRENT LIABILITIES:
Cash overdraft	30,026	25,851	21,566
Accounts payable	176,469	140,106	156,030
Accrued liabilities:
Compensation and benefits	61,976	97,556	58,491
Income taxes	1,600
Other	42,633	38,404	39,473
Current portion of long-term debt	425	1,329	2,280
TOTAL CURRENT LIABILITIES	313,129	303,246	277,840
LONG-TERM DEBT	261,327	144,674	252,904
DEFERRED INCOME TAXES	13,894	14,079	21,364
OTHER LIABILITIES	26,192	28,655	28,198
TOTAL LIABILITIES	614,542	490,654	580,306
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, 61,543,902, 61,191,888 and 61,554,147	61,544	61,192	61,554
Additional paid-in capital	172,929	161,928	156,320
Retained earnings	768,223	736,212	670,115
Accumulated other comprehensive income	(1,140)	144	(3,450)
Total controlling interest shareholders' equity	1,001,556	959,476	884,539
Noncontrolling interest	15,366	14,547	12,814
TOTAL SHAREHOLDERS' EQUITY	1,016,922	974,023	897,353
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,631,464	$ 1,464,677	$ 1,477,659

CONSOLIDATED CONDENSED BALANCE3

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 30, 2017	Apr. 01, 2017
SHAREHOLDERS' EQUITY:
Preferred stock, no par value (in dollars per share)	$ 0	$ 0	$ 0
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0	0
Preferred stock, shares outstanding (in shares)	0	0	0
Common Stock, Par or Stated Value Per Share	$ 1	$ 1	$ 1
Common stock, shares authorized (in shares)	80,000,000	80,000,000	80,000,000
Common stock, shares issued (in shares)	61,543,902	61,191,888	61,554,147
Common stock, shares outstanding (in shares)	61,543,902	61,191,888	61,554,147

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
NET SALES	$ 993,857	$ 846,130
COST OF GOODS SOLD	862,968	725,390
GROSS PROFIT	130,889	120,740
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	93,206	86,983
NET GAIN ON DISPOSITION OF ASSETS	(6,534)	(64)
EARNINGS FROM OPERATIONS	44,217	33,821
INTEREST EXPENSE	1,778	1,504
INTEREST AND INVESTMENT INCOME	(717)	(82)
EQUITY IN EARNINGS OF INVESTEE		(5)
NON-OPERATING (INCOME)/EXPENSE	1,061	1,417
EARNINGS BEFORE INCOME TAXES	43,156	32,404
INCOME TAXES	9,574	10,770
NET EARNINGS	33,582	21,634
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST	(749)	(572)
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST	$ 32,833	$ 21,062
EARNINGS PER SHARE - BASIC (USD per share)	$ 0.53	$ 0.34
EARNINGS PER SHARE - DILUTED (USD per share)	$ 0.53	$ 0.34
OTHER COMPREHENSIVE INCOME:
NET EARNINGS	$ 33,582	$ 21,634
OTHER COMPREHENSIVE GAIN (LOSS)	(439)	3,035
COMPREHENSIVE INCOME	33,143	24,669
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	(1,594)	(1,427)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST	$ 31,549	$ 23,242

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Earnings	Noncontrolling Interest	Total
Beginning balance at Dec. 31, 2016	$ 61,026	$ 144,649	$ 649,135	$ (5,630)	$ 11,286	$ 860,466
Increase (Decrease) in Stockholders' Equity
Net earnings			21,062		572	21,634
Foreign currency translation adjustment				1,971	855	2,826
Unrealized gain (loss) on investment & foreign currency				209		209
Distributions to noncontrolling interest					(1,673)	(1,673)
Additional purchases of noncontrolling interest					1,774	1,774
Issuance of shares under employee stock plans	5	142				147
Issuance of shares under stock grant programs	408	6,836				7,244
Issuance of shares under deferred compensation plans	118	(118)
Repurchase of shares	(3)		(82)			(85)
Expense associated with share-based compensation arrangements		571				571
Accrued expense under deferred compensation plans		4,240				4,240
Ending balance at Apr. 01, 2017	61,554	156,320	670,115	(3,450)	12,814	897,353
Beginning balance at Dec. 30, 2017	61,192	161,928	736,212	144	14,547	974,023
Increase (Decrease) in Stockholders' Equity
Net earnings			32,833		749	33,582
Foreign currency translation adjustment				(785)	845	60
Unrealized gain (loss) on investment & foreign currency				(499)		(499)
Distributions to noncontrolling interest					(775)	(775)
Issuance of shares under employee stock plans	8	199				207
Issuance of shares under stock grant programs	253	5,292				5,545
Issuance of shares under deferred compensation plans	117	(117)
Repurchase of shares	(26)		(822)			(848)
Expense associated with share-based compensation arrangements		1,034				1,034
Accrued expense under deferred compensation plans		4,593				4,593
Ending balance at Mar. 31, 2018	$ 61,544	$ 172,929	$ 768,223	$ (1,140)	$ 15,366	$ 1,016,922

CONSOLIDATED STATEMENTS OF SHA6

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
Increase (Decrease) in Stockholders' Equity
Issuance of shares under employee stock plans (in shares)	7,469	5,214
Issuance of shares under stock grant programs (in shares)	253,289	407,328
Issuance of shares under deferred compensation plans (in shares)	117,068	118,038
Repurchase of shares (in shares)	25,812	2,640

CONSOLIDATED CONDENSED STATEME7

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 33,582	$ 21,634
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation	12,712	11,392
Amortization of intangibles	1,228	1,119
Expense associated with share-based and grant compensation arrangements	1,094	617
Deferred income taxes (credits)	(519)	224
Equity in earnings of investee		(5)
Net gain on disposition of assets	(6,534)	(64)
Changes in:
Accounts receivable	(99,765)	(67,766)
Inventories	(57,403)	(60,984)
Accounts payable and cash overdraft	39,935	32,769
Accrued liabilities and other	(8,502)	(9,676)
NET CASH USED IN OPERATING ACTIVITIES	(84,172)	(70,740)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(24,362)	(16,531)
Proceeds from sale of property, plant and equipment	36,250	353
Acquisitions, net of cash received	(8,787)	(55,441)
Advances of notes receivable	(12)	(228)
Collections on notes receivable	482	721
Purchases of investments	(6,718)	(819)
Proceeds from sale of investments	5,045	1,204
Other	(594)	142
NET CASH FROM (USED IN) INVESTING ACTIVITIES	1,304	(70,599)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities	296,342	281,090
Repayments under revolving credit facilities	(179,429)	(137,767)
Borrowings of debt	1,376
Repayment of debt	(5,232)
Proceeds from issuance of common stock	206	146
Distributions to noncontrolling interest	(775)	(1,673)
Repurchase of common stock	(848)	(83)
Other	(70)	(16)
NET CASH FROM FINANCING ACTIVITIES	111,570	141,697
Effect of exchange rate changes on cash	233	882
NET CHANGE IN CASH AND CASH EQUIVALENTS	28,935	1,240
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR	28,816	34,489
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$ 57,751	$ 35,729

CONSOLIDATED CONDENSED STATEME8

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:
Cash and cash equivalents, beginning of period	$ 28,339	$ 34,091
Restricted cash, beginning of period	477	398
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR	28,816	34,489
Cash and cash equivalents, end of period	25,326	31,020
Restricted cash, end of period	32,425	4,709
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	57,751	35,729
SUPPLEMENTAL INFORMATION:
Interest paid	843	497
Income taxes paid	1,245	2,337
NON-CASH FINANCING ACTIVITIES:
Common stock issued under deferred compensation plans	$ 4,237	$ 3,793

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2018
BASIS OF PRESENTATION
BASIS OF PRESENTATION	A. BASIS OF PRESENTATION The accompanying unaudited interim consolidated condensed financial statements (the “Financial Statements”) include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships, and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, the Financial Statements do not include all of the information and footnotes normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States. All intercompany transactions and balances have been eliminated. In our opinion, the Financial Statements contain all material adjustments necessary to present fairly our consolidated financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature. These Financial Statements should be read in conjunction with the annual consolidated financial statements, and footnotes thereto, included in our Annual Report to Shareholders on Form 10‑K for the fiscal year ended December 30, 2017. Seasonality has a significant impact on our working capital from March to August which historically results in negative or modest cash flows from operations in our first and second quarters. Conversely, we experience a substantial decrease in working capital from September to February which typically results in significant cash flow from operations in our third and fourth quarters. For comparative purposes, we have included the April 1, 2017 balances in the accompanying unaudited consolidated condensed balance sheets.

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 31, 2018
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 measured at fair value are as follows: March 31, 2018 April 1, 2017 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 $ 65 $ 4,744 $ 4,809 $ 64 $ 4,564 $ 4,628 Fixed income funds 2,159 7,111 9,270 4,055 — 4,055 Equity securities 7,202 — 7,202 5,928 — 5,928 Mutual funds: Domestic stock funds 1,158 — 1,158 316 — 316 International stock funds 1,159 — 1,159 81 — 81 Target funds 281 743 1,024 246 — 246 Bond funds 207 347 554 203 — 203 Total mutual funds 2,805 1,090 3,895 846 — 846 Total $ 12,231 $ 12,945 $ 25,176 $ 10,893 $ 4,564 $ 15,457 Assets at fair value $ 12,231 $ 12,945 $ 25,176 $ 10,893 $ 4,564 $ 15,457 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”, “Restricted Cash”, and “Restricted Investments”. We have elected not to apply the fair value option under ASC 825, Financial Instruments, to any of our financial instruments except for those expressly required by U.S. GAAP. We did not maintain any Level 3 assets or liabilities at March 31, 2018, or April 1, 2017. In 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 $3.8 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 captive, Ardellis Insurance Ltd. (“Ardellis”), maintains an investment portfolio, totaling $19.4 million as of March 31, 2018, consisting of domestic and international stocks, and fixed income bonds. Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following: March 31,2018 Unrealized Cost Gain/(Loss) Fair Value Fixed Income $ 9,437 $ (167) $ 9,270 Equity 6,389 813 7,202 Mutual Funds 2,947 (34) 2,913 Total $ 18,773 $ 612 $ 19,385 Our fixed income investments consist of a blend of US Government and Agency bonds and investment grade corporate bonds with varying maturities. Our equity investments consist of small, mid, and large cap growth and value funds, as well as international equity. The net pre-tax effected unrealized gain was $0.6 million. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of March 31, 2018. During the first three months of 2018, Ardellis’ investments reported a net realized gain of $256 thousand, which was recorded in interest income on the statement of earnings.

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 31, 2018
REVENUE RECOGNITION
REVENUE RECOGNITION	C. REVENUE RECOGNITION On May 28, 2014, the FASB issued ASU No. 2014-09 (Accounting Standard Codification 606), Revenue from Contracts with Customers. Topic 606 supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition, and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange 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 has adopted the requirements of the new standard as of January 1, 2018, and utilized the modified retrospective method of transition which was applied to all contracts. The Company completed the new revenue recognition standard assessment and determined that there was no material impact to our consolidated financial statements, aside from additional required disclosures, thus no needed adjustment to the opening retained earnings for the annual reporting period. Within the three markets (retail, industrial, and construction) that the Company operates, there are a variety of written and oral contracts that are utilized to generate revenue from the sale of wood, wood composite and other products. The transaction price is stated at the purchase order level, which includes shipping and/or freight costs and any applicable governmental authority taxes. The majority of our contracts have a single performance obligation concentrated around the delivery of goods to the carrier, Free On Board (FOB) shipping point. Therefore, revenue is recognized when this performance obligation is satisfied. Generally, title and control passes at the time of shipment. In certain circumstances, the customer takes title when the shipment arrives at the destination. However, our shipping process is typically completed the same day. Certain customer products that we provide require installation by the Company or a 3 rd party. Installation revenue is recognized upon completion, which is typically 2-3 days after receipt. If it is determined to utilize a 3 rd party for installation, the party will act as an agent to the Company until completion of the installation. Installation revenue represents an immaterial share of the Company’s total sales. The Company utilizes rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, the volume returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized. Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred related to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced related to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent. Our construction contracts are generally entered into with a fixed price and completion of the projects can range from 6 to 18 months in duration. Therefore, our operating results are impacted by, among many other things, labor rates and commodity costs. During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist. The following table presents our gross revenues disaggregated by revenue source: Three Months Ended (in thousands) March 31, April 1, Market Classification 2018 2017 % Change FOB Shipping Point Revenue $ 981,691 $ 826,876 Construction Contract Revenue 29,976 31,981 -6.27% Total Sales 1,011,667 858,857 The North and West segments comprise the construction contract revenue above, $20.6 million and $9.4 million, respectively. Construction contract revenue is primarily made up of site-built and framing customers. The following table presents the balances of over time accounting accounts which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands): March 31, December 30, April 1, 2018 2017 2017 Cost and Earnings in Excess of Billings $ 2,517 $ 5,005 $ 3,063 Billings in Excess of Cost and Earnings 3,386 4,435 4,352

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2018
EARNINGS PER SHARE
EARNINGS PER SHARE	D. EARNINGS PER SHARE The computation of earnings per share (“EPS”) is as follows (in thousands): Three Months Ended March 31, April 1, 2018 2017 Numerator: Net earnings attributable to controlling interest $ 32,833 $ 21,062 Adjustment for earnings allocated to non-vested restricted common stock (724) (362) Net earnings for calculating EPS $ 32,109 $ 20,700 Denominator: Weighted average shares outstanding 61,636 61,410 Adjustment for non-vested restricted common stock (1,358) (1,053) Shares for calculating basic EPS 60,278 60,357 Effect of dilutive restricted common stock 85 99 Shares for calculating diluted EPS 60,363 60,456 Net earnings per share: Basic $ 0.53 $ 0.34 Diluted $ 0.53 $ 0.34 No options were excluded from the computation of diluted EPS for the quarters ended March 31, 2018, or April 1, 2017. On October 17, 2017, our Board of Directors declared a three-for-one stock split effected in the form of a stock dividend. The record date of the stock split was on October 31, 2017, and the eventual stock distribution to shareholders occurred on November 14, 2017. As a result of the stock split, all historical per share data and number of shares outstanding presented in future financial statements are retroactively adjusted.

COMMITMENTS, CONTINGENCIES, AND

COMMITMENTS, CONTINGENCIES, AND GUARANTEES	3 Months Ended
	Mar. 31, 2018
COMMITMENTS, CONTINGENCIES, AND GUARANTEES
COMMITMENTS, CONTINGENCIES, AND GUARANTEES	E. 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; and Auburndale, 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 $2.6 million and $3.6 million on March 31, 2018, and April 1, 2017, 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 approximate $0.2 million. As a result, this amount is recorded in other long-term liabilities on March 31, 2018. 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 March 31, 2018, 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 March 31, 2018, we had outstanding purchase commitments on commenced capital projects of approximately $28.5 million. We provide a variety of warranties for products we manufacture. Historically, warranty claims have not been material. We distribute products manufactured by other companies, some of which are no longer in business. While we do not warrant these products, we have received claims as a distributor of these products when the manufacturer no longer exists or has the ability to pay. Historically, these costs have not had a material effect on our consolidated financial statements. As part of our operations, we supply building materials and labor to site-built construction projects or we jointly bid on contracts with framing companies for such projects. In some instances, we are required to post payment and performance bonds to insure the project owner that the products and installation services are completed in accordance with our contractual obligations. We have agreed to indemnify the surety for claims made against the bonds. As of March 31, 2018, we had approximately $12.9 million outstanding payment and performance bonds for open projects. We had approximately $6.8 million in payment and performance bonds outstanding for completed projects which are still under warranty. On March 31, 2018, we had outstanding letters of credit totaling $26.4 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 $16.6 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 the first quarter of 2018 which would require us to recognize a liability on our balance sheet.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	3 Months Ended
	Mar. 31, 2018
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS	F. BUSINESS COMBINATIONS We completed the following acquisitions in three months ended 2018 and 2017 which were accounted for using the purchase method in thousands unless otherwise noted: Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment January 23, 2018 $2,942 $ 850 $ 2,092 West Spinner Wood Products, LLC ("Spinner") A manufacturer and distributor of agricultural bin and various industrial packaging. Spinner had annual sales of approximately $8 million. The acquisition of Spinner allows us to expand our industrial packaging product offering and creates operating leverage by consolidating with other regional operations. January 15, 2018 $5,845 $ 50 $ 5,795 North Great Northern Lumber, LLC A manufacturer of industrial products as well as serving the concrete forming market in the Chicago area. Great Northern Lumber had annual sales of approximately $25 million. The acquisition of Great Northern Lumber enables us to expand our concrete forming product offering and regional coverage. 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 had 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 had 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 had 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 had annual sales of approximately $30 million. The acquisition of Quality enabled us to expand our product offering to include hardwood-based products. The intangible assets for each acquisition were finalized and allocated to their respective identifiable intangible asset and goodwill accounts during 2018. In aggregate, acquisitions completed since the end of March 2017 contributed approximately $38.7 million in revenue and $0.8 million in operating profit during the first quarter of 2018.

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 31, 2018
SEGMENT REPORTING
SEGMENT REPORTING	G. 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, 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 (b) the Company’s distribution unit (referred to as UFPD) which distributes a variety of products to the manufactured housing industry nation-wide and is accounted for as a reporting unit within the North segment, and (c) the idX division, which designs, produces, and installs customized in-store environments, for customers world-wide. 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 division have been included in the “All Other” column of the table below. The “Corporate” column includes unallocated administrative costs and certain incentive compensation expense. Three Months Ended March 31, 2018 North South West All Other Corporate Total Net sales to outside customers $ 270,186 $ 242,020 $ 362,468 $ 119,183 $ — $ 993,857 Intersegment net sales 12,025 18,649 15,599 62,720 — 108,993 Segment operating profit (loss) 8,694 19,544 21,083 (3,100) (2,004) 44,217 Three Months Ended April 1, 2017 North South West All Other Corporate Total Net sales to outside customers $ 227,920 $ 188,743 $ 319,161 $ 110,306 $ — $ 846,130 Intersegment net sales 16,171 17,278 21,833 20,006 — 75,288 Segment operating profit 9,978 10,689 18,305 604 (5,755) 33,821

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2018
INCOME TAXES
INCOME TAXES	H. INCOME TAXES Effective tax rates differ from statutory federal income tax rates, primarily due to provisions for state and local income taxes and permanent tax differences. Our effective tax rate was 22.2% in the first quarter of 2018 compared to 33.2 % for same period in 2017. This decrease was due primarily to the Tax Act, which reduced the U.S. federal corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. Pursuant to SAB 118, the accounting for the Tax Act was incomplete at December 30, 2017 and is still incomplete as of March 31, 2018. As noted at year-end, however, we were able to reasonably estimate certain effects and, therefore, recorded provisional adjustments associated with the deemed repatriation transition tax, a provisional decrease for certain of our Deferred Tax Assets (DTAs) and Deferred Tax Liabilities (DTLs) related to the reduced corporate tax rate, and a provisional benefit related to our intent to fully expense all qualifying expenditures under the new cost recovery rules. We have not made any additional measurement-period adjustments related to these items during the quarter. However, we are continuing to gather additional information to complete our accounting for these items and expect to complete our accounting within the prescribed measurement period. As noted at year-end, we were not yet able to reasonably estimate the effects for Global Intangible Low-Taxed Income (GILTI). Therefore, no provisional adjustment was recorded. Because of the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the 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 related 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 a number of different aspects or our estimated future results of global operations, we are not yet able to reasonably estimate the long-term effects of this provision of the Act. Therefore, we have not recorded any potential deferred tax effects related to GILTI in our financial statements and have not made a policy decision regarding whether to record deferred taxes on GILTI or use the period cost method. We have however, included an estimate of the estimated 2018 current GILTI impact in our Annual Effective Tax Rate (AETR) for 2018. We expect to complete our accounting within the prescribed measurement period.

PROPERTY SALE

PROPERTY SALE	3 Months Ended
	Mar. 31, 2018
PROPERTY SALE
PROPERTY SALE	I . PROPERTY SALE The Company completed a sale of a property in Medley, Florida, during the first quarter of 2018. 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, however, only a minor portion of the property sold was leased back, the entire gain is included in income.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2018
BASIS OF PRESENTATION
Basis of Accounting	The accompanying unaudited interim consolidated condensed financial statements (the “Financial Statements”) include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships, and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, the Financial Statements do not include all of the information and footnotes normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States. All intercompany transactions and balances have been eliminated. In our opinion, the Financial Statements contain all material adjustments necessary to present fairly our consolidated financial position, results of operations and cash flows for the interim periods presented. All such adjustments are of a normal recurring nature. These Financial Statements should be read in conjunction with the annual consolidated financial statements, and footnotes thereto, included in our Annual Report to Shareholders on Form 10‑K for the fiscal year ended December 30, 2017. Seasonality has a significant impact on our working capital from March to August which historically results in negative or modest cash flows from operations in our first and second quarters. Conversely, we experience a substantial decrease in working capital from September to February which typically results in significant cash flow from operations in our third and fourth quarters. For comparative purposes, we have included the April 1, 2017 balances in the accompanying unaudited consolidated condensed balance sheets.
Revenue Recognition	On May 28, 2014, the FASB issued ASU No. 2014-09 (Accounting Standard Codification 606), Revenue from Contracts with Customers. Topic 606 supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition, and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange 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 has adopted the requirements of the new standard as of January 1, 2018, and utilized the modified retrospective method of transition which was applied to all contracts. The Company completed the new revenue recognition standard assessment and determined that there was no material impact to our consolidated financial statements, aside from additional required disclosures, thus no needed adjustment to the opening retained earnings for the annual reporting period. Within the three markets (retail, industrial, and construction) that the Company operates, there are a variety of written and oral contracts that are utilized to generate revenue from the sale of wood, wood composite and other products. The transaction price is stated at the purchase order level, which includes shipping and/or freight costs and any applicable governmental authority taxes. The majority of our contracts have a single performance obligation concentrated around the delivery of goods to the carrier, Free On Board (FOB) shipping point. Therefore, revenue is recognized when this performance obligation is satisfied. Generally, title and control passes at the time of shipment. In certain circumstances, the customer takes title when the shipment arrives at the destination. However, our shipping process is typically completed the same day. Certain customer products that we provide require installation by the Company or a 3 rd party. Installation revenue is recognized upon completion, which is typically 2-3 days after receipt. If it is determined to utilize a 3 rd party for installation, the party will act as an agent to the Company until completion of the installation. Installation revenue represents an immaterial share of the Company’s total sales. The Company utilizes rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, the volume returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized. Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred related to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced related to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent. Our construction contracts are generally entered into with a fixed price and completion of the projects can range from 6 to 18 months in duration. Therefore, our operating results are impacted by, among many other things, labor rates and commodity costs. During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist.
Revenue Recognition	On May 28, 2014, the FASB issued ASU No. 2014-09 (Accounting Standard Codification 606), Revenue from Contracts with Customers. Topic 606 supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition, and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange 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 has adopted the requirements of the new standard as of January 1, 2018, and utilized the modified retrospective method of transition which was applied to all contracts. The Company completed the new revenue recognition standard assessment and determined that there was no material impact to our consolidated financial statements, aside from additional required disclosures, thus no needed adjustment to the opening retained earnings for the annual reporting period. Within the three markets (retail, industrial, and construction) that the Company operates, there are a variety of written and oral contracts that are utilized to generate revenue from the sale of wood, wood composite and other products. The transaction price is stated at the purchase order level, which includes shipping and/or freight costs and any applicable governmental authority taxes. The majority of our contracts have a single performance obligation concentrated around the delivery of goods to the carrier, Free On Board (FOB) shipping point. Therefore, revenue is recognized when this performance obligation is satisfied. Generally, title and control passes at the time of shipment. In certain circumstances, the customer takes title when the shipment arrives at the destination. However, our shipping process is typically completed the same day. Certain customer products that we provide require installation by the Company or a 3 rd party. Installation revenue is recognized upon completion, which is typically 2-3 days after receipt. If it is determined to utilize a 3 rd party for installation, the party will act as an agent to the Company until completion of the installation. Installation revenue represents an immaterial share of the Company’s total sales. The Company utilizes rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on the expected amount to be provided to customers and reduce revenues recognized. We believe that there will not be significant changes to our estimates of variable consideration. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, the volume returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized. Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred related to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced related to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent. Our construction contracts are generally entered into with a fixed price and completion of the projects can range from 6 to 18 months in duration. Therefore, our operating results are impacted by, among many other things, labor rates and commodity costs. During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist. The following table presents our gross revenues disaggregated by revenue source: Three Months Ended (in thousands) March 31, April 1, Market Classification 2018 2017 % Change FOB Shipping Point Revenue $ 981,691 $ 826,876 Construction Contract Revenue 29,976 31,981 -6.27% Total Sales 1,011,667 858,857 The North and West segments comprise the construction contract revenue above, $20.6 million and $9.4 million, respectively. Construction contract revenue is primarily made up of site-built and framing customers.

FAIR VALUE (Tables)

FAIR VALUE (Tables)	3 Months Ended
	Mar. 31, 2018
FAIR VALUE
Assets measured at fair value	March 31, 2018 April 1, 2017 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 $ 65 $ 4,744 $ 4,809 $ 64 $ 4,564 $ 4,628 Fixed income funds 2,159 7,111 9,270 4,055 — 4,055 Equity securities 7,202 — 7,202 5,928 — 5,928 Mutual funds: Domestic stock funds 1,158 — 1,158 316 — 316 International stock funds 1,159 — 1,159 81 — 81 Target funds 281 743 1,024 246 — 246 Bond funds 207 347 554 203 — 203 Total mutual funds 2,805 1,090 3,895 846 — 846 Total $ 12,231 $ 12,945 $ 25,176 $ 10,893 $ 4,564 $ 15,457 Assets at fair value $ 12,231 $ 12,945 $ 25,176 $ 10,893 $ 4,564 $ 15,457
Available for sale investment portfolio	: March 31,2018 Unrealized Cost Gain/(Loss) Fair Value Fixed Income $ 9,437 $ (167) $ 9,270 Equity 6,389 813 7,202 Mutual Funds 2,947 (34) 2,913 Total $ 18,773 $ 612 $ 19,385

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Mar. 31, 2018
REVENUE RECOGNITION
Disaggregation of revenue	The following table presents our gross revenues disaggregated by revenue source: Three Months Ended (in thousands) March 31, April 1, Market Classification 2018 2017 % Change FOB Shipping Point Revenue $ 981,691 $ 826,876 Construction Contract Revenue 29,976 31,981 -6.27% Total Sales 1,011,667 858,857
Schedule of percentage-of-completion balances	The following table presents the balances of over time accounting accounts which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands): March 31, December 30, April 1, 2018 2017 2017 Cost and Earnings in Excess of Billings $ 2,517 $ 5,005 $ 3,063 Billings in Excess of Cost and Earnings 3,386 4,435 4,352

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2018
EARNINGS PER SHARE
Computation of earnings per share	The computation of earnings per share (“EPS”) is as follows (in thousands): Three Months Ended March 31, April 1, 2018 2017 Numerator: Net earnings attributable to controlling interest $ 32,833 $ 21,062 Adjustment for earnings allocated to non-vested restricted common stock (724) (362) Net earnings for calculating EPS $ 32,109 $ 20,700 Denominator: Weighted average shares outstanding 61,636 61,410 Adjustment for non-vested restricted common stock (1,358) (1,053) Shares for calculating basic EPS 60,278 60,357 Effect of dilutive restricted common stock 85 99 Shares for calculating diluted EPS 60,363 60,456 Net earnings per share: Basic $ 0.53 $ 0.34 Diluted $ 0.53 $ 0.34

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	3 Months Ended
	Mar. 31, 2018
BUSINESS COMBINATIONS
Business Acquisitions Accounted for Using Purchase Method	Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment January 23, 2018 $2,942 $ 850 $ 2,092 West Spinner Wood Products, LLC ("Spinner") A manufacturer and distributor of agricultural bin and various industrial packaging. Spinner had annual sales of approximately $8 million. The acquisition of Spinner allows us to expand our industrial packaging product offering and creates operating leverage by consolidating with other regional operations. January 15, 2018 $5,845 $ 50 $ 5,795 North Great Northern Lumber, LLC A manufacturer of industrial products as well as serving the concrete forming market in the Chicago area. Great Northern Lumber had annual sales of approximately $25 million. The acquisition of Great Northern Lumber enables us to expand our concrete forming product offering and regional coverage. 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 had 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 had 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 had 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 had annual sales of approximately $30 million. The acquisition of Quality enabled us to expand our product offering to include hardwood-based products.

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 31, 2018
SEGMENT REPORTING
Segment Reporting	Our Alternative Materials, International and idX division have been included in the “All Other” column of the table below. The “Corporate” column includes unallocated administrative costs and certain incentive compensation expense. Three Months Ended March 31, 2018 North South West All Other Corporate Total Net sales to outside customers $ 270,186 $ 242,020 $ 362,468 $ 119,183 $ — $ 993,857 Intersegment net sales 12,025 18,649 15,599 62,720 — 108,993 Segment operating profit (loss) 8,694 19,544 21,083 (3,100) (2,004) 44,217 Three Months Ended April 1, 2017 North South West All Other Corporate Total Net sales to outside customers $ 227,920 $ 188,743 $ 319,161 $ 110,306 $ — $ 846,130 Intersegment net sales 16,171 17,278 21,833 20,006 — 75,288 Segment operating profit 9,978 10,689 18,305 604 (5,755) 33,821

FAIR VALUE - Asset Measured at

FAIR VALUE - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 30, 2017	Mar. 31, 2018	Apr. 01, 2017
Fixed Income | Restricted Investments
Fair Value
Securities transferred to collateral trust account	$ 4,100
Securities purchased and held in the collateral trust account	$ 3,800
Estimate of Fair Value Measurement | Recurring
Fair Value
Investments at fair value		$ 25,176	$ 15,457
Assets at fair value		25,176	15,457
Estimate of Fair Value Measurement | Recurring | Money market funds
Fair Value
Investments at fair value		4,809	4,628
Estimate of Fair Value Measurement | Recurring | Fixed Income
Fair Value
Investments at fair value		9,270	4,055
Estimate of Fair Value Measurement | Recurring | Equity
Fair Value
Investments at fair value		7,202	5,928
Estimate of Fair Value Measurement | Recurring | Mutual Fund
Fair Value
Investments at fair value		3,895	846
Estimate of Fair Value Measurement | Recurring | Domestic stock funds
Fair Value
Investments at fair value		1,158	316
Estimate of Fair Value Measurement | Recurring | International stock funds
Fair Value
Investments at fair value		1,159	81
Estimate of Fair Value Measurement | Recurring | Target funds
Fair Value
Investments at fair value		1,024	246
Estimate of Fair Value Measurement | Recurring | Bond funds
Fair Value
Investments at fair value		554	203
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1)
Fair Value
Investments at fair value		12,231	10,893
Assets at fair value		12,231	10,893
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Money market funds
Fair Value
Investments at fair value		65	64
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Fixed Income
Fair Value
Investments at fair value		2,159	4,055
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Equity
Fair Value
Investments at fair value		7,202	5,928
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Mutual Fund
Fair Value
Investments at fair value		2,805	846
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Domestic stock funds
Fair Value
Investments at fair value		1,158	316
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | International stock funds
Fair Value
Investments at fair value		1,159	81
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Target funds
Fair Value
Investments at fair value		281	246
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Bond funds
Fair Value
Investments at fair value		207	203
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2)
Fair Value
Investments at fair value		12,945	4,564
Assets at fair value		12,945	4,564
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Money market funds
Fair Value
Investments at fair value		4,744	$ 4,564
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Fixed Income
Fair Value
Investments at fair value		7,111
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Mutual Fund
Fair Value
Investments at fair value		1,090
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Target funds
Fair Value
Investments at fair value		743
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Bond funds
Fair Value
Investments at fair value		$ 347

FAIR VALUE - Available for Sale

FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Available-for-sale securities
Total Securities Cost	$ 18,773
Unrealized Gain (Loss)	612
Total Fair Value	19,385
Interest Income
Available-for-sale securities
Realized gain	256
Fixed Income
Available-for-sale securities
Debt Securities Cost	9,437
Debt Securities Unrealized Gain/(Loss)	(167)
Debt Securities Fair Value	9,270
Equity
Available-for-sale securities
Equity Securities Cost	6,389
Equity Securities Unrealized Gain/(Loss)	813
Equity Securities Fair Value	7,202
Mutual Fund
Available-for-sale securities
Debt Securities Cost	2,947
Debt Securities Unrealized Gain/(Loss)	(34)
Debt Securities Fair Value	$ 2,913

REVENUE RECOGNITION - Disaggreg

REVENUE RECOGNITION - Disaggregated revenue (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)item	Apr. 01, 2017USD ($)	Dec. 31, 2017USD ($)	Dec. 30, 2017USD ($)
Revenue Recognition
Retained earnings	$ 768,223	$ 670,115		$ 736,212
Number of markets in which the entity operates (in markets) | item	3
Revenue from Contract with Customer, Including Assessed Tax	$ 1,011,667	858,857
Change %	17.79%
Minimum
Revenue Recognition
Number of days revenue is recognized	2 days
Maximum
Revenue Recognition
Number of days revenue is recognized	3 days
FOB Shipping Point Revenue
Revenue Recognition
Revenue from Contract with Customer, Including Assessed Tax	$ 981,691	826,876
Change %	18.72%
Construction Contract Revenue
Revenue Recognition
Revenue from Contract with Customer, Including Assessed Tax	$ 29,976	$ 31,981
Change %	(6.27%)
Construction Contract Revenue | Minimum
Revenue Recognition
Number of months to complete contract projects	6 months
Construction Contract Revenue | Maximum
Revenue Recognition
Number of months to complete contract projects	18 months
Construction Contract Revenue | North
Revenue Recognition
Revenue from Contract with Customer, Including Assessed Tax	$ 20,600
Construction Contract Revenue | West
Revenue Recognition
Revenue from Contract with Customer, Including Assessed Tax	$ 9,400
Adjustment | ASU 2014-09
Revenue Recognition
Retained earnings			$ 0

REVENUE RECOGNITION - Percentag

REVENUE RECOGNITION - Percentage of completion (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 30, 2017	Apr. 01, 2017
REVENUE RECOGNITION
Cost and Earnings in Excess of Billings	$ 2,517	$ 5,005	$ 3,063
Billings in Excess of Cost and Earnings	$ 3,386	$ 4,435	$ 4,352

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2018	Apr. 01, 2017
Numerator:
Net earnings attributable to controlling interest	$ 32,833	$ 21,062
Adjustment for earnings allocated to non-vested restricted common stock	(724)	(362)
Net earnings for calculating EPS	$ 32,109	$ 20,700
Denominator:
Weighted average shares outstanding (in shares)	61,636	61,410
Adjustment for non-vested restricted common stock (in shares)	(1,358)	(1,053)
Shares for calculating basic EPS (in shares)	60,278	60,357
Effect of dilutive restricted common stock (in shares)	85	99
Shares for calculating diluted EPS (in shares)	60,363	60,456
Net earnings per share
Basic (USD per share)	$ 0.53	$ 0.34
Diluted (USD per share)	$ 0.53	$ 0.34
Antidilutive securities
Options to purchase shares excluded from computation of EPS (in shares)	0	0

EARNINGS PER SHARE - Stock Spli

EARNINGS PER SHARE - Stock Split (Details)	Oct. 31, 2017
Stock split
Stock split ratio	3

COMMITMENTS, CONTINGENCIES, A30

COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) $ in Millions	Feb. 14, 2014item	May 31, 2016item	Apr. 30, 2016employeeitem	Apr. 30, 2014employee	Mar. 31, 2018USD ($)	Apr. 01, 2017USD ($)
Loss Contingencies
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					$ 28.5
Surety Bonds and Letters of Credit
Outstanding letters of credit					$ 26.4
Remediation reserves
Environmental reserves, discount rate (as a percent)					0.00%
Estimated costs to complete future remediation efforts					$ 2.6	$ 3.6
Loss contingency, number of operations served with a federal grand jury subpoena | item	1
Loss contingency, number of employees terminated | employee			2	2
Open Projects
Surety Bonds and Letters of Credit
Payment and performance bonds outstanding					12.9
Completed Projects
Surety Bonds and Letters of Credit
Payment and performance bonds outstanding					6.8
Insurance Contracts
Surety Bonds and Letters of Credit
Outstanding letters of credit					16.6
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

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands	Jan. 23, 2018	Jan. 15, 2018	Oct. 16, 2017	May 26, 2017	Mar. 06, 2017	Mar. 31, 2018
Business Acquisition
Aggregate acquisitions' revenue						$ 38,700
Aggregate acquisitions' operating profit						$ 800
Spinner Wood Products, LLC | West
Business Acquisition
Purchase Price	$ 2,942
Intangible Assets	850
Net Tangible Assets	2,092
Acquired entity, prior year sales	$ 8,000
Percentage of assets purchased (as a percent)	100.00%
Great Northern Lumber, LLC | North
Business Acquisition
Purchase Price		$ 5,845
Intangible Assets		50
Net Tangible Assets		5,795
Acquired entity, prior year sales		$ 25,000
Percentage of assets purchased (as a percent)		100.00%
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 LLC (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
Intangible Assets					14,341
Net Tangible Assets					8,448
Acquired entity, prior year sales					$ 30,000
Percentage of assets purchased (as a percent)					100.00%

SEGMENT REPORTING - NARRATIVE (

SEGMENT REPORTING - NARRATIVE (Details)	Mar. 31, 2018item
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
	Mar. 31, 2018	Apr. 01, 2017
Segment Reporting
Net sales	$ 993,857	$ 846,130
Segment operating profit	44,217	33,821
Intersegment net sales
Segment Reporting
Net sales	108,993	75,288
Corporate
Segment Reporting
Segment operating profit	(2,004)	(5,755)
North | Operating Segments
Segment Reporting
Net sales	270,186	227,920
Segment operating profit	8,694	9,978
North | Intersegment net sales
Segment Reporting
Net sales	12,025	16,171
South | Operating Segments
Segment Reporting
Net sales	242,020	188,743
Segment operating profit	19,544	10,689
South | Intersegment net sales
Segment Reporting
Net sales	18,649	17,278
West | Operating Segments
Segment Reporting
Net sales	362,468	319,161
Segment operating profit	21,083	18,305
West | Intersegment net sales
Segment Reporting
Net sales	15,599	21,833
All Other | Operating Segments
Segment Reporting
Net sales	119,183	110,306
Segment operating profit	(3,100)	604
All Other | Intersegment net sales
Segment Reporting
Net sales	$ 62,720	$ 20,006

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Apr. 01, 2017	Dec. 30, 2017
INCOME TAXES
Effective income tax rate	22.20%	33.20%
Statutory federal income tax rate	21.00%		35.00%

PROPERTY SALE (Details)

PROPERTY SALE (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)item
Property Sale
Number of operations | item	3
Medley Florida Property
Property Sale
Sale price of property | $	$ 36
Pre-tax gain on sale of property | $	$ 7
Length of lease (in years)	2 years
Robbins Manufacturing Co. (Robbins)
Property Sale
Number of operations | item	2