Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 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) | 61,632,401 |
Entity Current Reporting Status | Yes |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q2 |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 | Jul. 01, 2017 |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 27,501 | $ 28,339 | $ 24,625 |
Restricted cash | 16,758 | 477 | 905 |
Investments | 14,493 | 11,269 | 10,401 |
Accounts receivable, net | 489,145 | 327,751 | 398,529 |
Inventories: | |||
Raw materials | 272,765 | 234,354 | 218,356 |
Finished goods | 259,109 | 225,954 | 220,079 |
Total inventories | 531,874 | 460,308 | 438,435 |
Refundable income taxes | 2,396 | 7,228 | |
Other current assets | 30,464 | 28,115 | 21,970 |
TOTAL CURRENT ASSETS | 1,112,631 | 863,487 | 894,865 |
DEFERRED INCOME TAXES | 2,235 | 1,865 | 1,981 |
RESTRICTED INVESTMENTS | 10,950 | 8,359 | 7,911 |
OTHER ASSETS | 7,081 | 7,368 | 7,842 |
GOODWILL | 219,595 | 212,644 | 213,597 |
INDEFINITE-LIVED INTANGIBLE ASSETS | 7,384 | 7,415 | 2,340 |
OTHER INTANGIBLE ASSETS, NET | 36,045 | 34,910 | 37,547 |
PROPERTY, PLANT AND EQUIPMENT: | |||
Property, plant and equipment | 791,348 | 763,101 | 735,474 |
Less accumulated depreciation and amortization | (450,650) | (434,472) | (419,518) |
PROPERTY, PLANT AND EQUIPMENT, NET | 340,698 | 328,629 | 315,956 |
TOTAL ASSETS | 1,736,619 | 1,464,677 | 1,482,039 |
CURRENT LIABILITIES: | |||
Cash overdraft | 33,608 | 25,851 | 22,769 |
Accounts payable | 197,408 | 140,106 | 160,250 |
Accrued liabilities: | |||
Compensation and benefits | 88,771 | 97,556 | 77,187 |
Income taxes | 960 | ||
Other | 50,038 | 38,404 | 48,063 |
Current portion of long-term debt | 542 | 1,329 | 2,378 |
TOTAL CURRENT LIABILITIES | 370,367 | 303,246 | 311,607 |
LONG-TERM DEBT | 276,274 | 144,674 | 204,752 |
DEFERRED INCOME TAXES | 13,856 | 14,079 | 20,360 |
OTHER LIABILITIES | 28,399 | 28,655 | 28,959 |
TOTAL LIABILITIES | 688,896 | 490,654 | 565,678 |
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, 61,632,401, 61,191,888 and 61,265,325 | 61,632 | 61,192 | 61,266 |
Additional paid-in capital | 174,749 | 161,928 | 158,248 |
Retained earnings | 800,237 | 736,212 | 684,808 |
Accumulated other comprehensive income | (4,077) | 144 | (2,590) |
Total controlling interest shareholders' equity | 1,032,541 | 959,476 | 901,732 |
Noncontrolling interest | 15,182 | 14,547 | 14,629 |
TOTAL SHAREHOLDERS' EQUITY | 1,047,723 | 974,023 | 916,361 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,736,619 | $ 1,464,677 | $ 1,482,039 |
CONSOLIDATED CONDENSED BALANCE3
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 30, 2017 | Jul. 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) | 61,632,401 | 61,191,888 | 61,265,325 |
Common stock, shares outstanding (in shares) | 61,632,401 | 61,191,888 | 61,265,325 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS | ||||
NET SALES | $ 1,294,440 | $ 1,072,375 | $ 2,288,297 | $ 1,918,505 |
COST OF GOODS SOLD | 1,128,751 | 924,135 | 1,991,719 | 1,649,526 |
GROSS PROFIT | 165,689 | 148,240 | 296,578 | 268,979 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 104,595 | 94,605 | 197,800 | 181,587 |
NET LOSS (GAIN) ON DISPOSITION OF ASSETS AND IMPAIRMENT OF ASSETS | 477 | (264) | (6,057) | (328) |
EARNINGS FROM OPERATIONS | 60,617 | 53,899 | 104,835 | 87,720 |
INTEREST EXPENSE | 2,248 | 1,840 | 4,025 | 3,343 |
INTEREST AND INVESTMENT INCOME | (181) | (329) | (898) | (411) |
EQUITY IN EARNINGS OF INVESTEE | (21) | (26) | ||
NON-OPERATING (INCOME)/EXPENSE | 2,067 | 1,490 | 3,127 | 2,906 |
EARNINGS BEFORE INCOME TAXES | 58,550 | 52,409 | 101,708 | 84,814 |
INCOME TAXES | 13,420 | 17,835 | 22,994 | 28,605 |
NET EARNINGS | 45,130 | 34,574 | 78,714 | 56,209 |
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST | (1,086) | (932) | (1,836) | (1,505) |
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST | $ 44,044 | $ 33,642 | $ 76,878 | $ 54,704 |
EARNINGS PER SHARE - BASIC (USD per share) | $ 0.71 | $ 0.55 | $ 1.24 | $ 0.89 |
EARNINGS PER SHARE - DILUTED (USD per share) | $ 0.71 | $ 0.55 | $ 1.24 | $ 0.89 |
OTHER COMPREHENSIVE INCOME: | ||||
NET EARNINGS | $ 45,130 | $ 34,574 | $ 78,714 | $ 56,209 |
OTHER COMPREHENSIVE GAIN (LOSS) | (3,905) | 1,387 | (4,344) | 4,422 |
COMPREHENSIVE INCOME | 41,225 | 35,961 | 74,370 | 60,631 |
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (119) | (1,460) | (1,713) | (2,887) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ 41,106 | $ 34,501 | $ 72,657 | $ 57,744 |
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 | 54,704 | 1,505 | 56,209 | |||
Foreign currency translation adjustment | 2,817 | 1,382 | 4,199 | |||
Unrealized gain (loss) on investment & foreign currency | 223 | 223 | ||||
Distributions to noncontrolling interest | (1,953) | (1,953) | ||||
Additional purchases of noncontrolling interest | 2,409 | 2,409 | ||||
Cash dividends | (9,208) | (9,208) | ||||
Issuance of shares under employee stock plans | 13 | 319 | 332 | |||
Issuance of shares under stock grant programs | 426 | 6,784 | 7,210 | |||
Issuance of shares under deferred compensation plans | 133 | (133) | ||||
Repurchase of shares | (332) | 221 | (9,823) | (9,934) | ||
Expense associated with share-based compensation arrangements | 1,282 | 1,282 | ||||
Accrued expense under deferred compensation plans | 5,126 | 5,126 | ||||
Ending balance at Jul. 01, 2017 | 61,266 | 158,248 | 684,808 | (2,590) | 14,629 | 916,361 |
Beginning balance at Dec. 30, 2017 | 61,192 | 161,928 | 736,212 | 144 | 14,547 | 974,023 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 76,878 | 1,836 | 78,714 | |||
Foreign currency translation adjustment | (3,669) | (123) | (3,792) | |||
Unrealized gain (loss) on investment & foreign currency | (552) | (552) | ||||
Distributions to noncontrolling interest | (1,078) | (1,078) | ||||
Cash dividends | (11,090) | (11,090) | ||||
Issuance of shares under employee stock plans | 17 | 483 | 500 | |||
Issuance of shares under stock grant programs | 347 | 4,990 | 5,337 | |||
Issuance of shares under deferred compensation plans | 132 | (132) | ||||
Repurchase of shares | (56) | (1,763) | (1,819) | |||
Expense associated with share-based compensation arrangements | 1,817 | 1,817 | ||||
Accrued expense under deferred compensation plans | 5,663 | 5,663 | ||||
Ending balance at Jun. 30, 2018 | $ 61,632 | $ 174,749 | $ 800,237 | $ (4,077) | $ 15,182 | $ 1,047,723 |
CONSOLIDATED STATEMENTS OF SHA6
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Increase (Decrease) in Stockholders' Equity | ||
Cash dividends per share (USD per share) | $ 0.180 | $ 0.150 |
Issuance of shares under employee stock plans (in shares) | 16,917 | 12,699 |
Issuance of shares under stock grant programs (in shares) | 346,777 | 426,435 |
Issuance of shares under deferred compensation plans (in shares) | 132,603 | 132,624 |
Repurchase of shares (in shares) | 55,784 | 332,640 |
CONSOLIDATED CONDENSED STATEME7
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net earnings | $ 78,714 | $ 56,209 |
Adjustments to reconcile net earnings to net cash from operating activities: | ||
Depreciation | 26,144 | 23,248 |
Amortization of intangibles | 2,702 | 2,377 |
Expense associated with share-based and grant compensation arrangements | 1,924 | 1,381 |
Deferred income taxes (credits) | (565) | 355 |
Equity in earnings of investee | (26) | |
Net gain on disposition of assets | (6,057) | (328) |
Changes in: | ||
Accounts receivable | (155,666) | (101,239) |
Inventories | (61,828) | (26,979) |
Accounts payable and cash overdraft | 62,665 | 38,146 |
Accrued liabilities and other | 15,895 | 22,067 |
NET CASH USED IN OPERATING ACTIVITIES | (36,072) | 15,211 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (54,313) | (34,549) |
Proceeds from sale of property, plant and equipment | 36,724 | 1,039 |
Acquisitions, net of cash received | (37,960) | (59,658) |
Purchases of investments | (9,348) | (15,118) |
Proceeds from sale of investments | 3,180 | 7,247 |
Other | (1,352) | 1,152 |
NET CASH FROM (USED IN) INVESTING ACTIVITIES | (63,069) | (99,887) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings under revolving credit facilities | 488,853 | 444,601 |
Repayments under revolving credit facilities | (431,657) | (349,311) |
Borrowings of debt | 1,639 | |
Repayment of debt | (5,437) | |
Issuance of long-term debt | 75,000 | |
Proceeds from issuance of common stock | 500 | 331 |
Dividends paid to shareholders | (11,090) | (9,207) |
Distributions to noncontrolling interest | (1,078) | (1,953) |
Repurchase of common stock | (1,819) | (9,934) |
Other | (71) | (6) |
NET CASH FROM FINANCING ACTIVITIES | 114,840 | 74,521 |
Effect of exchange rate changes on cash | (256) | 1,196 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 15,443 | (8,959) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 28,816 | 34,489 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ 44,259 | $ 25,530 |
CONSOLIDATED CONDENSED STATEME8
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jul. 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 | 27,501 | 24,625 |
Restricted cash, end of period | 16,758 | 905 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | 44,259 | 25,530 |
SUPPLEMENTAL INFORMATION: | ||
Interest paid | 3,889 | 3,049 |
Income taxes paid | 18,745 | 15,895 |
NON-CASH FINANCING ACTIVITIES: | ||
Common stock issued under deferred compensation plans | $ 4,779 | $ 4,231 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 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 July 1, 2017 balances in the accompanying unaudited consolidated condensed balance sheets. |
FAIR VALUE
FAIR VALUE | 6 Months Ended |
Jun. 30, 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: June 30, 2018 July 1, 2017 Quoted Prices with Quoted Prices with Prices in Other Prices with Prices in Other Active Observable Unobservable Active Observable Markets Inputs Inputs Markets Inputs (in thousands) (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) Total Money market funds $ 56 $ 1,513 $ — $ 1,569 $ 64 $ 891 $ 955 Fixed income funds 2,879 7,968 — 10,847 1,495 6,451 7,946 Equity securities 7,892 — — 7,892 9,822 — 9,822 Hedge funds — — 1,689 1,689 Mutual funds: Domestic stock funds 413 — — 413 330 — 330 International stock funds 3,951 — — 3,951 84 — 84 Target funds 249 — — 249 254 — 254 Bond funds 725 — — 725 206 — 206 Total mutual funds 5,338 — — 5,338 874 — 874 Total $ 16,165 $ 9,481 $ 1,689 $ 27,335 $ 12,255 $ 7,342 $ 19,597 Assets at fair value $ 16,165 $ 9,481 $ 1,689 $ 27,335 $ 12,255 $ 7,342 $ 19,597 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. During the second quarter of 2018, we purchased a private real estate income trust which will be valued as a Level 3 asset. We did not maintain any Level 3 assets or liabilities at July 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 $24.8 million as of June 30, 2018, consisting of domestic and international stocks, hedge funds, and fixed income bonds. Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands): June 30,2018 Unrealized Cost Gain/(Loss) Fair Value Fixed Income $ 11,068 $ (221) $ 10,847 Equity 7,013 879 7,892 Mutual Funds 4,508 (123) 4,385 Hedge Funds 1,679 10 1,689 Total $ 24,268 $ 545 $ 24,813 Our fixed income investments consist of a blend of US Government and Agency bonds and investment grade corporate bonds with varying maturities. Our equity investments consist of small, mid, and large cap growth and value funds, as well as international equity. Our hedge funds consist of the private real estate income trust which is valued as a Level 3 asset. The net pre-tax effected unrealized gain was $0.5 million. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of June 30, 2018. During the first six months of 2018, Ardellis’ investments reported a net realized gain of $514 thousand, which was recorded in interest income on the statement of earnings. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 6 Months Ended |
Jun. 30, 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 Six Months Ended (in thousands) June 30, July 1, June 30, July 1, Market Classification 2018 2017 % Change 2018 2017 % Change FOB Shipping Point Revenue $ 1,281,557 $ 1,058,777 $ 2,263,248 $ 1,885,652 Construction Contract Revenue 38,811 33,418 68,787 65,400 Total Sales 1,320,368 1,092,195 2,332,035 1,951,052 In the first six months of 2018, the North and West segments comprise the construction contract revenue above, $47.3 million and $21.5 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): June 30, December 30, July 1, 2018 2017 2017 Cost and Earnings in Excess of Billings $ 5,501 $ 5,005 $ 3,521 Billings in Excess of Cost and Earnings 4,616 4,435 3,725 |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30, July 1, June 30, July 1, 2018 2017 2018 2017 Numerator: Net earnings attributable to controlling interest $ 44,044 $ 33,642 $ 76,878 $ 54,704 Adjustment for earnings allocated to non-vested restricted common stock (1,018) (663) (1,728) (994) Net earnings for calculating EPS $ 43,026 $ 32,979 $ 75,150 $ 53,710 Denominator: Weighted average shares outstanding 61,895 61,632 61,770 61,482 Adjustment for non-vested restricted common stock (1,431) (1,215) (1,389) (1,119) Shares for calculating basic EPS 60,464 60,417 60,381 60,363 Effect of dilutive restricted common stock 85 93 80 111 Shares for calculating diluted EPS 60,549 60,510 60,461 60,474 Net earnings per share: Basic $ 0.71 $ 0.55 $ 1.24 $ 0.89 Diluted $ 0.71 $ 0.55 $ 1.24 $ 0.89 No options were excluded from the computation of diluted EPS for the quarters ended June 30, 2018, or July 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 | 6 Months Ended |
Jun. 30, 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 $2.5 million and $3.6 million on June 30, 2018, and July 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 June 30, 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 June 30, 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 June 30, 2018, we had outstanding purchase commitments on commenced capital projects of approximately $23.4 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 June 30, 2018, we had approximately $15.8 million outstanding payment and performance bonds for open projects. We had approximately $1.7 million in payment and performance bonds outstanding for completed projects which are still under warranty. On June 30, 2018, we had outstanding letters of credit totaling $30.4 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 $20.6 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 second quarter of 2018 which would require us to recognize a liability on our balance sheet. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 6 Months Ended |
Jun. 30, 2018 | |
BUSINESS COMBINATIONS | |
BUSINESS COMBINATIONS | F. BUSINESS COMBINATIONS We completed the following acquisitions in six 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 June 1, 2018 $23,893 $ 7,123 $ 16,770 South North American Container Corporation ("NACC") A manufacturer of structural packaging products, including steel, corrugated and hardwood packaging. NACC had annual sales of approximately $71 million. The acquisition of NACC allowed us to expand our presence in this region, expand our product offering, and serve customers more cost effectively. April 9, 2018 $3,890 $ 2,235 $ 1,655 West Fontana Wood Products ("Fontana") A manufacturer and distributor lumber and trusses in the Southern California region. Fontana had annual sales of approximately $12 million. The acquisition of Fontana allows us to expand our manufactured housing business and creates operating leverage by consolidating with another regional operation. April 3, 2018 $1,404 $ 1,344 $ 60 All Other Expert Packaging ("Expert") A manufacturer and distributor of total packaging solutions in timber, crates, pallets, and skids. Expert had annual sales of approximately $3.6 million. The acquisition of Expert allows us to make progress on our goal of becoming a global provider of packaging solutions. 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, excluding the NACC aquisition. In aggregate, acquisitions completed since the end of June 2017 contributed approximately $14.2 million in revenue and $0.7 million in operating profit during the second quarter of 2018. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 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 June 30, 2018 North South West All Other Corporate Total Net sales to outside customers $ 390,821 $ 291,320 $ 456,825 $ 155,474 $ — $ 1,294,440 Intersegment net sales 18,558 20,675 14,464 61,957 — 115,654 Segment operating profit 19,822 14,902 29,698 4,319 (8,124) 60,617 Three Months Ended July 1, 2017 North South West All Other Corporate Total Net sales to outside customers $ 319,554 $ 221,583 $ 390,868 $ 140,370 $ — $ 1,072,375 Intersegment net sales 16,790 19,378 22,249 49,197 — 107,614 Segment operating profit 16,246 10,229 24,704 5,798 (3,078) 53,899 Six Months Ended June 30, 2018 North South West All Other Corporate Total Net sales to outside customers $ 661,007 $ 533,340 $ 819,293 $ 274,657 $ — $ 2,288,297 Intersegment net sales 30,583 39,323 30,063 124,677 — 224,646 Segment operating profit (loss) 28,517 34,447 50,780 1,219 (10,128) 104,835 Six Months Ended July 1, 2017 North South West All Other Corporate Total Net sales to outside customers $ 547,475 $ 410,326 $ 710,030 $ 250,674 $ — $ 1,918,505 Intersegment net sales 32,962 36,656 44,082 68,127 — 181,827 Segment operating profit 26,224 20,918 43,008 6,404 (8,834) 87,720 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 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 22.9% in the second quarter of 2018 compared to 34.0 % for same period in 2017. Our effective tax rate was 22.6% in the first six months of 2018 compared to 33.7% for the same period in 2017. This decrease was due primarily to changes resulting from the Tax Act, which reduced the U.S. federal corporate income tax rate from 35 percent to 21 percent effective January 1, 2018, along with eliminating the domestic manufacturing deduction. Pursuant to SAB 118, the accounting for the Tax Act was incomplete at December 30, 2017 and is still incomplete as of June 30, 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 | 6 Months Ended |
Jun. 30, 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. Since 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) | 6 Months Ended |
Jun. 30, 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 July 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. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
FAIR VALUE | |
Assets measured at fair value | June 30, 2018 July 1, 2017 Quoted Prices with Quoted Prices with Prices in Other Prices with Prices in Other Active Observable Unobservable Active Observable Markets Inputs Inputs Markets Inputs (in thousands) (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) Total Money market funds $ 56 $ 1,513 $ — $ 1,569 $ 64 $ 891 $ 955 Fixed income funds 2,879 7,968 — 10,847 1,495 6,451 7,946 Equity securities 7,892 — — 7,892 9,822 — 9,822 Hedge funds — — 1,689 1,689 Mutual funds: Domestic stock funds 413 — — 413 330 — 330 International stock funds 3,951 — — 3,951 84 — 84 Target funds 249 — — 249 254 — 254 Bond funds 725 — — 725 206 — 206 Total mutual funds 5,338 — — 5,338 874 — 874 Total $ 16,165 $ 9,481 $ 1,689 $ 27,335 $ 12,255 $ 7,342 $ 19,597 Assets at fair value $ 16,165 $ 9,481 $ 1,689 $ 27,335 $ 12,255 $ 7,342 $ 19,597 |
Available for sale investment portfolio | Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands): June 30,2018 Unrealized Cost Gain/(Loss) Fair Value Fixed Income $ 11,068 $ (221) $ 10,847 Equity 7,013 879 7,892 Mutual Funds 4,508 (123) 4,385 Hedge Funds 1,679 10 1,689 Total $ 24,268 $ 545 $ 24,813 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
REVENUE RECOGNITION | |
Disaggregation of revenue | Three Months Ended Six Months Ended (in thousands) June 30, July 1, June 30, July 1, Market Classification 2018 2017 % Change 2018 2017 % Change FOB Shipping Point Revenue $ 1,281,557 $ 1,058,777 $ 2,263,248 $ 1,885,652 Construction Contract Revenue 38,811 33,418 68,787 65,400 Total Sales 1,320,368 1,092,195 2,332,035 1,951,052 |
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): June 30, December 30, July 1, 2018 2017 2017 Cost and Earnings in Excess of Billings $ 5,501 $ 5,005 $ 3,521 Billings in Excess of Cost and Earnings 4,616 4,435 3,725 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
EARNINGS PER SHARE | |
Computation of earnings per share | The computation of earnings per share (“EPS”) is as follows (in thousands): Three Months Ended Six Months Ended June 30, July 1, June 30, July 1, 2018 2017 2018 2017 Numerator: Net earnings attributable to controlling interest $ 44,044 $ 33,642 $ 76,878 $ 54,704 Adjustment for earnings allocated to non-vested restricted common stock (1,018) (663) (1,728) (994) Net earnings for calculating EPS $ 43,026 $ 32,979 $ 75,150 $ 53,710 Denominator: Weighted average shares outstanding 61,895 61,632 61,770 61,482 Adjustment for non-vested restricted common stock (1,431) (1,215) (1,389) (1,119) Shares for calculating basic EPS 60,464 60,417 60,381 60,363 Effect of dilutive restricted common stock 85 93 80 111 Shares for calculating diluted EPS 60,549 60,510 60,461 60,474 Net earnings per share: Basic $ 0.71 $ 0.55 $ 1.24 $ 0.89 Diluted $ 0.71 $ 0.55 $ 1.24 $ 0.89 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
BUSINESS COMBINATIONS | |
Business Acquisitions Accounted for Using Purchase Method | We completed the following acquisitions in six 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 June 1, 2018 $23,893 $ 7,123 $ 16,770 South North American Container Corporation ("NACC") A manufacturer of structural packaging products, including steel, corrugated and hardwood packaging. NACC had annual sales of approximately $71 million. The acquisition of NACC allowed us to expand our presence in this region, expand our product offering, and serve customers more cost effectively. April 9, 2018 $3,890 $ 2,235 $ 1,655 West Fontana Wood Products ("Fontana") A manufacturer and distributor lumber and trusses in the Southern California region. Fontana had annual sales of approximately $12 million. The acquisition of Fontana allows us to expand our manufactured housing business and creates operating leverage by consolidating with another regional operation. April 3, 2018 $1,404 $ 1,344 $ 60 All Other Expert Packaging ("Expert") A manufacturer and distributor of total packaging solutions in timber, crates, pallets, and skids. Expert had annual sales of approximately $3.6 million. The acquisition of Expert allows us to make progress on our goal of becoming a global provider of packaging solutions. 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) | 6 Months Ended |
Jun. 30, 2018 | |
SEGMENT REPORTING | |
Segment Reporting | Three Months Ended June 30, 2018 North South West All Other Corporate Total Net sales to outside customers $ 390,821 $ 291,320 $ 456,825 $ 155,474 $ — $ 1,294,440 Intersegment net sales 18,558 20,675 14,464 61,957 — 115,654 Segment operating profit 19,822 14,902 29,698 4,319 (8,124) 60,617 Three Months Ended July 1, 2017 North South West All Other Corporate Total Net sales to outside customers $ 319,554 $ 221,583 $ 390,868 $ 140,370 $ — $ 1,072,375 Intersegment net sales 16,790 19,378 22,249 49,197 — 107,614 Segment operating profit 16,246 10,229 24,704 5,798 (3,078) 53,899 Six Months Ended June 30, 2018 North South West All Other Corporate Total Net sales to outside customers $ 661,007 $ 533,340 $ 819,293 $ 274,657 $ — $ 2,288,297 Intersegment net sales 30,583 39,323 30,063 124,677 — 224,646 Segment operating profit (loss) 28,517 34,447 50,780 1,219 (10,128) 104,835 Six Months Ended July 1, 2017 North South West All Other Corporate Total Net sales to outside customers $ 547,475 $ 410,326 $ 710,030 $ 250,674 $ — $ 1,918,505 Intersegment net sales 32,962 36,656 44,082 68,127 — 181,827 Segment operating profit 26,224 20,918 43,008 6,404 (8,834) 87,720 |
FAIR VALUE - Asset Measured at
FAIR VALUE - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2017 | Jun. 30, 2018 | Jul. 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 | $ 27,335 | $ 19,597 | |
Assets at fair value | 27,335 | 19,597 | |
Estimate of Fair Value Measurement | Recurring | Money market funds | |||
Fair Value | |||
Investments at fair value | 1,569 | 955 | |
Estimate of Fair Value Measurement | Recurring | Fixed Income | |||
Fair Value | |||
Investments at fair value | 10,847 | 7,946 | |
Estimate of Fair Value Measurement | Recurring | Equity | |||
Fair Value | |||
Investments at fair value | 7,892 | 9,822 | |
Estimate of Fair Value Measurement | Recurring | Hedge funds | |||
Fair Value | |||
Investments at fair value | 1,689 | ||
Estimate of Fair Value Measurement | Recurring | Mutual Fund | |||
Fair Value | |||
Investments at fair value | 5,338 | 874 | |
Estimate of Fair Value Measurement | Recurring | Domestic stock funds | |||
Fair Value | |||
Investments at fair value | 413 | 330 | |
Estimate of Fair Value Measurement | Recurring | International stock funds | |||
Fair Value | |||
Investments at fair value | 3,951 | 84 | |
Estimate of Fair Value Measurement | Recurring | Target funds | |||
Fair Value | |||
Investments at fair value | 249 | 254 | |
Estimate of Fair Value Measurement | Recurring | Bond funds | |||
Fair Value | |||
Investments at fair value | 725 | 206 | |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | |||
Fair Value | |||
Investments at fair value | 16,165 | 12,255 | |
Assets at fair value | 16,165 | 12,255 | |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Money market funds | |||
Fair Value | |||
Investments at fair value | 56 | 64 | |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Fixed Income | |||
Fair Value | |||
Investments at fair value | 2,879 | 1,495 | |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Equity | |||
Fair Value | |||
Investments at fair value | 7,892 | 9,822 | |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Mutual Fund | |||
Fair Value | |||
Investments at fair value | 5,338 | 874 | |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Domestic stock funds | |||
Fair Value | |||
Investments at fair value | 413 | 330 | |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | International stock funds | |||
Fair Value | |||
Investments at fair value | 3,951 | 84 | |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Target funds | |||
Fair Value | |||
Investments at fair value | 249 | 254 | |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Bond funds | |||
Fair Value | |||
Investments at fair value | 725 | 206 | |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | |||
Fair Value | |||
Investments at fair value | 9,481 | 7,342 | |
Assets at fair value | 9,481 | 7,342 | |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Money market funds | |||
Fair Value | |||
Investments at fair value | 1,513 | 891 | |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Fixed Income | |||
Fair Value | |||
Investments at fair value | 7,968 | $ 6,451 | |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | |||
Fair Value | |||
Investments at fair value | 1,689 | ||
Assets at fair value | 1,689 | ||
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | Hedge funds | |||
Fair Value | |||
Investments at fair value | $ 1,689 |
FAIR VALUE - Available for Sale
FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Available-for-sale securities | |
Total Securities Cost | $ 24,268 |
Unrealized Gain (Loss) | 545 |
Total Fair Value | 24,813 |
Interest Income | |
Available-for-sale securities | |
Realized gain | 514 |
Fixed Income | |
Available-for-sale securities | |
Debt Securities Cost | 11,068 |
Debt Securities Unrealized Gain/(Loss) | (221) |
Debt Securities Fair Value | 10,847 |
Equity | |
Available-for-sale securities | |
Equity Securities Cost | 7,013 |
Equity Securities Unrealized Gain/(Loss) | 879 |
Equity Securities Fair Value | 7,892 |
Mutual Fund | |
Available-for-sale securities | |
Debt Securities Cost | 4,508 |
Debt Securities Unrealized Gain/(Loss) | (123) |
Debt Securities Fair Value | 4,385 |
Hedge funds | |
Available-for-sale securities | |
Debt Securities Cost | 1,679 |
Debt Securities Unrealized Gain/(Loss) | 10 |
Debt Securities Fair Value | $ 1,689 |
REVENUE RECOGNITION - Disaggreg
REVENUE RECOGNITION - Disaggregated revenue (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($)item | Jul. 01, 2017USD ($) | Jun. 30, 2018USD ($)item | Jul. 01, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 30, 2017USD ($) | |
Revenue Recognition | ||||||
Retained earnings | $ 800,237 | $ 684,808 | $ 800,237 | $ 684,808 | $ 736,212 | |
Number of markets in which the entity operates (in markets) | item | 3 | 3 | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,320,368 | 1,092,195 | $ 2,332,035 | 1,951,052 | ||
Change % | 20.89% | 19.53% | ||||
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 | $ 1,281,557 | 1,058,777 | $ 2,263,248 | 1,885,652 | ||
Change % | 21.04% | 20.02% | ||||
Construction Contract Revenue | ||||||
Revenue Recognition | ||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 38,811 | $ 33,418 | $ 68,787 | $ 65,400 | ||
Change % | 16.14% | 5.18% | ||||
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 | $ 47,300 | |||||
Construction Contract Revenue | West | ||||||
Revenue Recognition | ||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 21,500 | |||||
Adjustment | ASU 2014-09 | ||||||
Revenue Recognition | ||||||
Retained earnings | $ 0 |
REVENUE RECOGNITION - Percentag
REVENUE RECOGNITION - Percentage of completion (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 | Jul. 01, 2017 |
REVENUE RECOGNITION | |||
Cost and Earnings in Excess of Billings | $ 5,501 | $ 5,005 | $ 3,521 |
Billings in Excess of Cost and Earnings | $ 4,616 | $ 4,435 | $ 3,725 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Numerator: | ||||
Net earnings attributable to controlling interest | $ 44,044 | $ 33,642 | $ 76,878 | $ 54,704 |
Adjustment for earnings allocated to non-vested restricted common stock | (1,018) | (663) | (1,728) | (994) |
Net earnings for calculating EPS | $ 43,026 | $ 32,979 | $ 75,150 | $ 53,710 |
Denominator: | ||||
Weighted average shares outstanding (in shares) | 61,895 | 61,632 | 61,770 | 61,482 |
Adjustment for non-vested restricted common stock (in shares) | (1,431) | (1,215) | (1,389) | (1,119) |
Shares for calculating basic EPS (in shares) | 60,464 | 60,417 | 60,381 | 60,363 |
Effect of dilutive restricted common stock (in shares) | 85 | 93 | 80 | 111 |
Shares for calculating diluted EPS (in shares) | 60,549 | 60,510 | 60,461 | 60,474 |
Net earnings per share | ||||
Basic (USD per share) | $ 0.71 | $ 0.55 | $ 1.24 | $ 0.89 |
Diluted (USD per share) | $ 0.71 | $ 0.55 | $ 1.24 | $ 0.89 |
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 | Jun. 30, 2018USD ($) | Jul. 01, 2017USD ($) |
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 | $ 23.4 | |||||
Surety Bonds and Letters of Credit | ||||||
Outstanding letters of credit | $ 30.4 | |||||
Remediation reserves | ||||||
Environmental reserves, discount rate (as a percent) | 0.00% | |||||
Estimated costs to complete future remediation efforts | $ 2.5 | $ 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 | 15.8 | |||||
Completed Projects | ||||||
Surety Bonds and Letters of Credit | ||||||
Payment and performance bonds outstanding | 1.7 | |||||
Insurance Contracts | ||||||
Surety Bonds and Letters of Credit | ||||||
Outstanding letters of credit | 20.6 | |||||
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 | Jun. 01, 2018 | Apr. 09, 2018 | Apr. 03, 2018 | Jan. 23, 2018 | Jan. 15, 2018 | Oct. 16, 2017 | May 26, 2017 | Mar. 06, 2017 | Jun. 30, 2018 |
Business Acquisition | |||||||||
Aggregate acquisitions' revenue | $ 14,200 | ||||||||
Aggregate acquisitions' operating profit | $ 700 | ||||||||
North American Container Corporation | South | |||||||||
Business Acquisition | |||||||||
Purchase Price | $ 23,893 | ||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||
Intangible Assets | $ 7,123 | ||||||||
Net Tangible Assets | 16,770 | ||||||||
Acquired entity, prior year sales | $ 71,000 | ||||||||
Fontana Wood Products | West | |||||||||
Business Acquisition | |||||||||
Purchase Price | $ 3,890 | ||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||
Intangible Assets | $ 2,235 | ||||||||
Net Tangible Assets | 1,655 | ||||||||
Acquired entity, prior year sales | $ 12 | ||||||||
Expert Packaging | All Other | |||||||||
Business Acquisition | |||||||||
Purchase Price | $ 1,404 | ||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||
Intangible Assets | $ 1,344 | ||||||||
Net Tangible Assets | 60 | ||||||||
Acquired entity, prior year sales | $ 3,600 | ||||||||
Spinner Wood Products, LLC | West | |||||||||
Business Acquisition | |||||||||
Purchase Price | $ 2,942 | ||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||
Intangible Assets | $ 850 | ||||||||
Net Tangible Assets | 2,092 | ||||||||
Acquired entity, prior year sales | $ 8,000 | ||||||||
Great Northern Lumber, LLC | North | |||||||||
Business Acquisition | |||||||||
Purchase Price | $ 5,845 | ||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||
Intangible Assets | $ 50 | ||||||||
Net Tangible Assets | 5,795 | ||||||||
Acquired entity, prior year sales | $ 25,000 | ||||||||
Silverwater Box | All Other | |||||||||
Business Acquisition | |||||||||
Purchase Price | $ 931 | ||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||
Intangible Assets | $ 909 | ||||||||
Net Tangible Assets | 22 | ||||||||
Acquired entity, prior year sales | $ 2,800 | ||||||||
Go Boy Pallets LLC (Go Boy) | South | |||||||||
Business Acquisition | |||||||||
Purchase Price | $ 5,042 | ||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||
Intangible Assets | $ 4,880 | ||||||||
Net Tangible Assets | 162 | ||||||||
Acquired entity, prior year sales | $ 8,000 | ||||||||
Robbins Manufacturing Co. (Robbins) | South | |||||||||
Business Acquisition | |||||||||
Purchase Price | $ 31,818 | ||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||
Intangible Assets | $ 7,653 | ||||||||
Net Tangible Assets | 24,165 | ||||||||
Acquired entity, prior year sales | 86,000 | ||||||||
Quality Hardwood Sales, LLC (Quality) | North | |||||||||
Business Acquisition | |||||||||
Purchase Price | $ 22,789 | ||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||
Intangible Assets | $ 14,341 | ||||||||
Net Tangible Assets | 8,448 | ||||||||
Acquired entity, prior year sales | $ 30,000 |
SEGMENT REPORTING - NARRATIVE (
SEGMENT REPORTING - NARRATIVE (Details) | Jun. 30, 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 | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Segment Reporting | ||||
Net sales | $ 1,294,440 | $ 1,072,375 | $ 2,288,297 | $ 1,918,505 |
Segment operating profit (loss) | 60,617 | 53,899 | 104,835 | 87,720 |
Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 115,654 | 107,614 | 224,646 | 181,827 |
Corporate | ||||
Segment Reporting | ||||
Segment operating profit (loss) | (8,124) | (3,078) | (10,128) | (8,834) |
North | Operating Segments | ||||
Segment Reporting | ||||
Net sales | 390,821 | 319,554 | 661,007 | 547,475 |
Segment operating profit (loss) | 19,822 | 16,246 | 28,517 | 26,224 |
North | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 18,558 | 16,790 | 30,583 | 32,962 |
South | Operating Segments | ||||
Segment Reporting | ||||
Net sales | 291,320 | 221,583 | 533,340 | 410,326 |
Segment operating profit (loss) | 14,902 | 10,229 | 34,447 | 20,918 |
South | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 20,675 | 19,378 | 39,323 | 36,656 |
West | Operating Segments | ||||
Segment Reporting | ||||
Net sales | 456,825 | 390,868 | 819,293 | 710,030 |
Segment operating profit (loss) | 29,698 | 24,704 | 50,780 | 43,008 |
West | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | 14,464 | 22,249 | 30,063 | 44,082 |
All Other | Operating Segments | ||||
Segment Reporting | ||||
Net sales | 155,474 | 140,370 | 274,657 | 250,674 |
Segment operating profit (loss) | 4,319 | 5,798 | 1,219 | 6,404 |
All Other | Intersegment net sales | ||||
Segment Reporting | ||||
Net sales | $ 61,957 | $ 49,197 | $ 124,677 | $ 68,127 |
INCOME TAXES (Details)
INCOME TAXES (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | |
INCOME TAXES | |||||
Effective income tax rate | 22.90% | 34.00% | 22.60% | 33.70% | |
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 |