UFP Industries (UFPI) 10-Q 1 Aug 18 2018 Q2 Quarterly report Financial data

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