UFP Industries (UFPI) 10-Q 1 May 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 30, 2019shares
Document and Entity Information [Abstract]
Entity Registrant Name	UNIVERSAL FOREST PRODUCTS INC
Entity Central Index Key	0000912767
Current Fiscal Year End Date	--12-28
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding (in shares)	61,352,372
Entity Current Reporting Status	Yes
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 30, 2019
Entity Small Business	false
Entity Emerging Growth Company	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 17,111	$ 27,316	$ 25,326
Restricted cash	1,024	882	32,425
Investments	16,197	14,755	10,701
Accounts receivable, net	444,111	343,450	430,251
Inventories:
Raw materials	279,265	271,871	261,808
Finished goods	300,898	284,349	259,898
Total inventories	580,163	556,220	521,706
Refundable income taxes	4,629	14,130
Other current assets	40,237	38,525	23,304
TOTAL CURRENT ASSETS	1,103,472	995,278	1,043,713
DEFERRED INCOME TAXES	2,364	2,668	2,273
RESTRICTED INVESTMENTS	13,580	13,267	10,238
RIGHT OF USE ASSETS	66,100
OTHER ASSETS	8,419	8,662	7,123
GOODWILL	224,247	224,117	212,596
INDEFINITE-LIVED INTANGIBLE ASSETS	7,364	7,360	7,407
OTHER INTANGIBLE ASSETS, NET	39,686	41,486	34,543
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment	828,837	814,645	754,603
Less accumulated depreciation and amortization	(472,671)	(459,935)	(441,032)
PROPERTY, PLANT AND EQUIPMENT, NET	356,166	354,710	313,571
TOTAL ASSETS	1,821,398	1,647,548	1,631,464
CURRENT LIABILITIES:
Cash overdraft	18,732	27,367	30,026
Accounts payable	170,667	136,901	176,469
Accrued liabilities:
Compensation and benefits	70,867	104,109	61,976
Income taxes			1,600
Other	45,618	41,645	42,633
Current portion of lease liability	14,500
Current portion of long-term debt	185	148	425
TOTAL CURRENT LIABILITIES	320,569	310,170	313,129
LONG-TERM DEBT	266,428	202,130	261,327
LEASE LIABILITY	51,600
DEFERRED INCOME TAXES	14,622	15,687	13,894
OTHER LIABILITIES	29,813	30,877	26,192
TOTAL LIABILITIES	683,032	558,864	614,542
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, 61,352,372, 60,883,749, and 61,543,902	61,352	60,884	61,544
Additional paid-in capital	190,879	178,540	172,929
Retained earnings	875,457	839,917	768,223
Accumulated other comprehensive income	(4,789)	(5,938)	(1,140)
Total controlling interest shareholders' equity	1,122,899	1,073,403	1,001,556
Noncontrolling interest	15,467	15,281	15,366
TOTAL SHAREHOLDERS' EQUITY	1,138,366	1,088,684	1,016,922
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,821,398	$ 1,647,548	$ 1,631,464

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
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)	61,352,372	60,883,749	61,543,902
Common stock, shares outstanding (in shares)	61,352,372	60,883,749	61,543,902

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
NET SALES	$ 1,015,125	$ 993,857
COST OF GOODS SOLD	860,858	862,968
GROSS PROFIT	154,267	130,889
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	105,943	93,206
NET (GAIN) ON DISPOSITION OF ASSETS	(122)	(6,534)
EARNINGS FROM OPERATIONS	48,446	44,217
INTEREST EXPENSE	2,460	1,778
INTEREST AND INVESTMENT INCOME	(1,593)	(717)
NON-OPERATING (INCOME)/EXPENSE	867	1,061
EARNINGS BEFORE INCOME TAXES	47,579	43,156
INCOME TAXES	11,577	9,574
NET EARNINGS	36,002	33,582
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST	(462)	(749)
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST	$ 35,540	$ 32,833
EARNINGS PER SHARE - BASIC (USD per share)	$ 0.58	$ 0.53
EARNINGS PER SHARE - DILUTED (USD per share)	$ 0.58	$ 0.53
OTHER COMPREHENSIVE INCOME:
NET EARNINGS	$ 36,002	$ 33,582
OTHER COMPREHENSIVE GAIN (LOSS)	1,373	(439)
COMPREHENSIVE INCOME	37,375	33,143
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	(686)	(1,594)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST	$ 36,689	$ 31,549

CONDENSED CONSOLIDATED STATEM_2

CONDENSED 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. 30, 2017	$ 61,192	$ 161,928	$ 736,212	$ 144	$ 14,547	$ 974,023
Increase (Decrease) in Stockholders' Equity
Net earnings			32,833		749	33,582
Foreign currency translation adjustment				(785)	845	60
Unrealized gain (loss) on investment & foreign currency				(499)		(499)
Distributions to noncontrolling interest					(775)	(775)
Issuance of shares under employee stock purchase plans	8	199				207
Issuance of shares under stock grant programs	253	5,292				5,545
Issuance of shares under deferred compensation plans	117	(117)
Repurchase of shares	(26)		(822)			(848)
Expense associated with share-based compensation arrangements		1,034				1,034
Accrued expense under deferred compensation plans		4,593				4,593
Ending balance at Mar. 31, 2018	61,544	172,929	768,223	(1,140)	15,366	1,016,922
Beginning balance at Dec. 29, 2018	60,884	178,540	839,917	(5,938)	15,281	1,088,684
Increase (Decrease) in Stockholders' Equity
Net earnings			35,540		462	36,002
Foreign currency translation adjustment				982	224	1,206
Unrealized gain (loss) on investment & foreign currency				167		167
Distributions to noncontrolling interest					(500)	(500)
Issuance of shares under employee stock purchase plans	10	251				261
Issuance of shares under stock grant programs	320	6,101				6,421
Issuance of shares under deferred compensation plans	138	(138)
Expense associated with share-based compensation arrangements		1,226				1,226
Accrued expense under deferred compensation plans		4,899				4,899
Ending balance at Mar. 30, 2019	$ 61,352	$ 190,879	$ 875,457	$ (4,789)	$ 15,467	$ 1,138,366

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - shares	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Increase (Decrease) in Stockholders' Equity
Issuance of shares under employee stock plans (in shares)	10,259	7,469
Issuance of shares under stock grant programs (in shares)	320,069	253,289
Issuance of shares under deferred compensation plans (in shares)	138,295	117,068
Repurchase of shares (in shares)		25,812

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 36,002	$ 33,582
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation	14,475	12,712
Amortization of intangibles	1,852	1,228
Expense associated with share-based and grant compensation arrangements	1,287	1,094
Deferred income taxes (credits)	(742)	(519)
Unrealized (gain) on investments	(1,348)
Net (gain) on disposition of assets	(122)	(6,534)
Changes in:
Accounts receivable	(100,716)	(99,765)
Inventories	(23,649)	(57,403)
Accounts payable and cash overdraft	25,056	39,935
Accrued liabilities and other	(7,924)	(8,502)
NET CASH USED IN OPERATING ACTIVITIES	(55,829)	(84,172)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(15,883)	(24,362)
Proceeds from sale of property, plant and equipment	241	36,250
Acquisitions, net of cash received		(8,787)
Purchases of investments	(449)	(6,718)
Proceeds from sale of investments	340	5,045
Other	200	(124)
NET CASH (USED IN) PROVIDED BY INVESTING ACTIVITIES	(15,551)	1,304
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities	237,560	296,342
Repayments under revolving credit facilities	(173,232)	(179,429)
Borrowings of debt		1,376
Repayment of debt	(3,029)	(5,232)
Proceeds from issuance of common stock	261	206
Distributions to noncontrolling interest	(500)	(775)
Repurchase of common stock		(848)
Other	9	(70)
NET CASH FROM PROVIDED BY FINANCING ACTIVITIES	61,069	111,570
Effect of exchange rate changes on cash	248	233
NET CHANGE IN CASH AND CASH EQUIVALENTS	(10,063)	28,935
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR	28,198	28,816
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$ 18,135	$ 57,751

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:
Cash and cash equivalents, beginning of period	$ 27,316	$ 28,339
Restricted cash, beginning of period	882	477
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR	28,198	28,816
Cash and cash equivalents, end of period	17,111	25,326
Restricted cash, end of period	1,024	32,425
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	18,135	57,751
SUPPLEMENTAL INFORMATION:
Interest paid	570	843
Income taxes paid	2,801	1,245
NON-CASH FINANCING ACTIVITIES:
Common stock issued under deferred compensation plans	$ 4,457	$ 4,237

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 30, 2019
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 29, 2018. 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 March 31, 2018 balances in the accompanying unaudited consolidated condensed balance sheets.

FAIR VALUE

FAIR VALUE	3 Months Ended
	Mar. 30, 2019
FAIR VALUE
FAIR VALUE	B. FAIR VALUE We apply the provisions of ASC 820, Fair Value Measurements and Disclosures , to assets and liabilities measured at fair value. Assets measured at fair value are as follows: March 30, 2019 March 31, 2018 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 $ 549 $ — $ 605 $ 65 $ 4,744 $ 4,809 Fixed income funds 3,860 9,763 — 13,623 2,159 7,111 9,270 Equity securities 8,258 — — 8,258 7,202 — 7,202 Hedge funds — — 1,782 1,782 Mutual funds: Domestic stock funds 2,151 — — 2,151 1,158 — 1,158 International stock funds 2,085 — — 2,085 1,159 — 1,159 Target funds 257 — — 257 281 743 1,024 Bond funds 799 — — 799 207 347 554 Alternative funds 1,344 — — 1,344 Total mutual funds 6,636 — — 6,636 2,805 1,090 3,895 Total $ 18,810 $ 10,312 1,782 $ 30,904 $ 12,231 $ 12,945 $ 25,176 Assets at fair value $ 18,810 $ 10,312 1,782 $ 30,904 $ 12,231 $ 12,945 $ 25,176 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 2018, we purchased a private real estate income trust which are valued as a Level 3 asset. We did not maintain any Level 3 assets or liabilities at March 31, 2018. In accordance with our investment policy, our wholly-owned captive, Ardellis Insurance Ltd. (“Ardellis”), maintains an investment portfolio, totaling $29.3 million as of March 30, 2019, 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): March 30,2019 Unrealized Cost Gain/(Loss) Fair Value Fixed Income $ 13,565 $ 58 $ 13,623 Equity 7,235 1,023 8,258 Mutual Funds 5,815 (150) 5,665 Hedge Funds 1,744 38 1,782 Total $ 28,359 $ 969 $ 29,328 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 unrealized gain was $1.0 million. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of March 30, 2019.

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 30, 2019
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: (in thousands) March 30, March 31, Market Classification 2019 2018 % Change FOB Shipping Point Revenue $ 996,823 $ 981,691 Construction Contract Revenue 34,782 29,976 Total Gross Sales 1,031,605 1,011,667 Sales Allowances (16,480) (17,810) -7.5% Total Net Sales $ 1,015,125 $ 993,857 In the first three months of 2019, the North and West segments comprise the construction contract revenue above, $19.4 million and $15.4 million, respectively, compared to $20.6 million and $9.4 million, respectively, during the same period of 2018. Construction contract revenue is primarily made up of site-built and framing customers. The following table presents the balances of over time accounting accounts which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands): March 30, December 29, March 31, 2019 2018 2018 Cost and Earnings in Excess of Billings $ 7,880 $ 6,945 $ 2,517 Billings in Excess of Cost and Earnings 5,020 3,245 3,386

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 30, 2019
EARNINGS PER SHARE
EARNINGS PER SHARE	D. EARNINGS PER SHARE The computation of earnings per share (“EPS”) is as follows (in thousands): Three Months Ended March 30, March 31, 2019 2018 Numerator: Net earnings attributable to controlling interest $ 35,540 $ 32,833 Adjustment for earnings allocated to non-vested restricted common stock (865) (724) Net earnings for calculating EPS $ 34,675 $ 32,109 Denominator: Weighted average shares outstanding 61,372 61,636 Adjustment for non-vested restricted common stock (1,493) (1,358) Shares for calculating basic EPS 59,879 60,278 Effect of dilutive restricted common stock 75 85 Shares for calculating diluted EPS 59,954 60,363 Net earnings per share: Basic $ 0.58 $ 0.53 Diluted $ 0.58 $ 0.53

COMMITMENTS, CONTINGENCIES, AND

COMMITMENTS, CONTINGENCIES, AND GUARANTEES	3 Months Ended
	Mar. 30, 2019
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 $2.0 million and $2.6 million on March 30, 2019, and March 31, 2018, respectively, representing the estimated costs to complete future remediation efforts. These amounts have not been reduced by an insurance receivable. In addition, on March 30, 2019, we were parties either as plaintiff or defendant to a number of lawsuits and claims arising through the normal course of our business. In the opinion of management, our consolidated financial statements will not be materially affected by the outcome of these contingencies and claims. On March 30, 2019, we had outstanding purchase commitments on commenced capital projects of approximately $18.5 million. We provide a variety of warranties for products we manufacture. Historically, warranty claims have not been material. We distribute products manufactured by other companies, some of which are no longer in business. While we do not warrant these products, we have received claims as a distributor of these products when the manufacturer no longer exists or has the ability to pay. Historically, these costs have not had a material effect on our consolidated financial statements. As part of our operations, we supply building materials and labor to site-built construction projects or we jointly bid on contracts with framing companies for such projects. In some instances, we are required to post payment and performance bonds to insure the project owner that the products and installation services are completed in accordance with our contractual obligations. We have agreed to indemnify the surety for claims made against the bonds. As of March 30, 2019, we had approximately $13.6 million outstanding payment and performance bonds for open projects. We had approximately $9.1 million in payment and performance bonds outstanding for completed projects which are still under warranty. On March 30, 2019, we had outstanding letters of credit totaling $30.6 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 $20.8 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 and 2018 Senior Notes and our revolving credit facility. The maximum exposure of these guarantees is limited to the indebtedness outstanding under these debt arrangements and this exposure will expire concurrent with the expiration of the debt agreements. We did not enter into any new guarantee arrangements during the first quarter of 2019 which would require us to recognize a liability on our balance sheet.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	3 Months Ended
	Mar. 30, 2019
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS	F. BUSINESS COMBINATIONS We completed the following acquisitions in 2018, none in 2019, 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 October 22, 2018 $15,115 $ 8,592 $ 6,523 North Pak-Rite, LTD ("Pak-Rite") A designer and manufacturer of packaging for high-value products, such as medical, aerospace and automation equipment. Pak-Rite had annual sales of approximately $15 million. The acquisition of Pak-Rite allows us to grow our portfolio of packaging products and our presence in this region. July 31, 2018 $1,016 $ 250 $ 766 West The Pallet Place, LLC ("Pallet Place") A manufacturer and distributor of total packaging solutions in timber, crates, skids, and pallets. Pallet Place had annual sales of approximately $5 million. The acquisition of Pallet Place allows us to increase our industrial business and creates operating leverage by consolidating with another regional operation. June 1, 2018 $23,866 $ 12,497 $ 11,369 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 allows us to enhance 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 of 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 $1,347 $ 1,287 $ 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 $5,784 $ 50 $ 5,734 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. The intangible assets for each acquisition were finalized and allocated to their respective identifiable intangible asset and goodwill accounts during 2018, except for the NACC and Pak-Rite acquisitions. In aggregate, acquisitions completed since the end of March 2018 and not consolidated with other operations contributed approximately $28.5 million in revenue and a $1.2 million operating profit during the first quarter of 2019.

SEGMENT REPORTING

SEGMENT REPORTING	3 Months Ended
	Mar. 30, 2019
SEGMENT REPORTING
SEGMENT REPORTING	G. SEGMENT REPORTING ASC 280, Segment Reporting (“ASC 280”), defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company operates manufacturing, treating and distribution facilities throughout North America, but primarily in the United States. The Company manages the operations of its individual locations primarily through a geographic reporting structure under which each location is included in a region and regions are included in our North, South, West, and International divisions. The exceptions to this geographic reporting and management structure are (a) the Company’s Alternative Materials Division, which offers a portfolio of non-wood products and distributes those products nation-wide (b) the Company’s distribution unit (referred to as UFPD) which distributes a variety of products to the manufactured housing industry nation-wide and is accounted for as a reporting unit within the North segment, and (c) the idX division, which designs, produces, and installs customized in-store environments for customers world-wide. With respect to the facilities in the north, south, and west segments, these facilities generally supply the three markets the Company serves nationally - Retail, Industrial, and Construction. Also, substantially all of our facilities support customers in the immediate geographical region surrounding the facility. Our Alternative Materials, International and idX division have been included in the “All Other” column of the table below. The “Corporate” column includes unallocated administrative costs and certain incentive compensation expense. Three Months Ended March 30, 2019 North South West All Other Corporate Total Net sales to outside customers $ 278,333 $ 244,242 $ 360,097 $ 132,453 $ — $ 1,015,125 Intersegment net sales 11,697 18,617 12,929 57,653 — 100,896 Segment operating profit (loss) 14,419 15,059 23,254 (4,187) (99) 48,446 Three Months Ended March 31, 2018 North South West All Other Corporate Total Net sales to outside customers $ 270,186 $ 242,020 $ 362,468 $ 119,183 $ — $ 993,857 Intersegment net sales 12,025 18,649 15,599 62,720 — 108,993 Segment operating profit 7,232 18,323 18,695 (3,346) 3,313 44,217

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 30, 2019
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 24.3% in the first quarter of 2019 compared to 22.2 % for same period in 2018. The increase was primarily due to recording certain discrete state income tax items in 2018, which lowered the effective tax rate last year .

LEASES

LEASES	3 Months Ended
	Mar. 30, 2019
LEASES
LEASES	I . LEASES In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2016‑02, “Leases (Topic 842)” (ASU 2016‑02). Under ASU 2016‑02, an entity will be required to recognize assets and liabilities for the rights and obligations created by leases on the entity’s balance sheet for both finance and operating leases. For leases with a term of 12 months or less, an entity can elect to not recognize lease assets and lease liabilities and expense the lease over a straight-line basis for the term of the lease. ASU 2016‑02 requires new disclosures that depict the amount, timing, and uncertainty of cash flows pertaining to an entity’s leases. Companies are required to adopt the new standard for annual and interim periods beginning after December 15, 2018. Early adoption of ASU 2016‑02 is permitted. The FASB decided to amend certain aspects of its new leasing standard in an attempt to provide a relief from implementation costs. Specifically, entities may elect not to restate their comparative periods in the period of adoption when transitioning to the new standard. Upon adoption of ASC 842, there was no cumulative effect adjustment to retained earnings or other components of equity. We elected the package of practical expedients whereby we are not required to 1) reassess whether any expired or existing contracts contain leases, 2) reassess the lease classification of existing leases, and 3) reassess initial direct costs for any existing leases. Additionally, we did not elect the hindsight practical expedient to determine the reasonably certain lease term for existing leases. We did elect to account for lease and related non-lease components as a single lease component. We elected to not recognize leases with an original term of 12 months or less as they are not significant to our consolidated balance sheet and income statement. We have assessed and updated our business processes, systems, and controls to ensure compliance with the new accounting and disclosure requirements in accordance with the new standard. We lease certain real estate under non-cancelable operating lease agreements with typical original terms ranging from one to ten years. We are required to pay real estate taxes and other occupancy costs under certain leases, which are variable in nature and not included in the right of use asset or lease liability. Certain leases carry renewal options of five to fifteen years. We believe that future leases will likely have similar terms. We also lease motor vehicles, equipment, and an aircraft under operating lease agreements for periods of one to ten years. We do not typically enter into leases with residual value guarantees. We believe finance leases will have no significant impact to our consolidated balance sheet and income statement as of March 30, 2019. As of March 30, 2019, we have no leases that have not yet commenced that would significantly impact the rights, obligations, and financial position of the Company. The rates implicit in our leases are primarily not readily available. To determine the discount rate used to present value the lease payments, the Company utilized the 5-year treasury note rate plus a blend of rate spreads associated with our revolver and 10-12-year senior notes. We feel the determined rate is a reasonable collectively representation of our lease population. Future minimum payments under non-cancelable operating leases on March 30, 2019 are as follows (in thousands): Operating Leases 2019 (remainder of year) $ 13,879 2020 13,432 2021 11,253 2022 9,822 2023 7,867 Thereafter 22,429 Total minimum lease payments $ 78,682 Less present value discount (12,582) Total lease liability $ 66,100 Rent expense was approximately $6.4 million and $6.2 million during the first three months of 2019 and 2018, respectively. For comparison purposes, we have included the future minimum payments under non-cancelable operating leases on December 29, 2018, (in thousands): Operating Leases 12/29/2018 2019 $ 17,242 2020 11,969 2021 9,784 2022 8,346 2023 6,382 Thereafter 22,498 Total minimum lease payments $ 76,221 During the first quarter of 2018, the Company completed a sale and leaseback transaction related to one facility in Medley, Florida. The sale price for the property was approximately $36 million and created a $7 million pre-tax gain, which was entirely recognized in 2018. The Company leased back the facility for two years as it executes its long-term plan for Florida and the Southeast region, however only a minor portion of the property sold was leased back. As of March 30, 2019, the weighted average lease term for operating leases is 7.04 years. Similarly, the weighted average discount rate for operating leases is 3.78%.

COMMON STOCK

COMMON STOCK	3 Months Ended
	Mar. 30, 2019
COMMON STOCK
COMMON STOCK	J . COMMON STOCK Below is a summary of common stock issuances for the first three months of 2019 and 2018: March 30, 2019 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 10 $ 29.88 Shares issued under the employee stock gift program 2 30.90 Shares issued under the director retainer stock program 1 31.00 Shares issued under the long term stock incentive plan 211 30.83 Shares issued under the executive stock match grants 109 31.57 Forfeitures (3) - Total shares issued under stock grant programs 320 $ 31.08 Shares issued under the deferred compensation plans 138 $ 32.23 March 31, 2018 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 8 $ 32.45 Shares issued under the employee stock gift program 1 36.50 Shares issued under the director retainer stock program 2 37.17 Shares issued under the long term stock incentive plan 164 34.75 Shares issued under the executive stock match grants 94 32.94 Forfeitures (8) - Total shares issued under stock grant programs 253 $ 34.13 Shares issued under the deferred compensation plans 117 $ 36.19

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 30, 2019
BASIS OF PRESENTATION
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 29, 2018. 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 March 31, 2018 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)	3 Months Ended
	Mar. 30, 2019
FAIR VALUE
Assets measured at fair value	March 30, 2019 March 31, 2018 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 $ 549 $ — $ 605 $ 65 $ 4,744 $ 4,809 Fixed income funds 3,860 9,763 — 13,623 2,159 7,111 9,270 Equity securities 8,258 — — 8,258 7,202 — 7,202 Hedge funds — — 1,782 1,782 Mutual funds: Domestic stock funds 2,151 — — 2,151 1,158 — 1,158 International stock funds 2,085 — — 2,085 1,159 — 1,159 Target funds 257 — — 257 281 743 1,024 Bond funds 799 — — 799 207 347 554 Alternative funds 1,344 — — 1,344 Total mutual funds 6,636 — — 6,636 2,805 1,090 3,895 Total $ 18,810 $ 10,312 1,782 $ 30,904 $ 12,231 $ 12,945 $ 25,176 Assets at fair value $ 18,810 $ 10,312 1,782 $ 30,904 $ 12,231 $ 12,945 $ 25,176
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): March 30,2019 Unrealized Cost Gain/(Loss) Fair Value Fixed Income $ 13,565 $ 58 $ 13,623 Equity 7,235 1,023 8,258 Mutual Funds 5,815 (150) 5,665 Hedge Funds 1,744 38 1,782 Total $ 28,359 $ 969 $ 29,328

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Mar. 30, 2019
REVENUE RECOGNITION
Schedule of Disaggregation of revenue	(in thousands) March 30, March 31, Market Classification 2019 2018 % Change FOB Shipping Point Revenue $ 996,823 $ 981,691 Construction Contract Revenue 34,782 29,976 Total Gross Sales 1,031,605 1,011,667 Sales Allowances (16,480) (17,810) -7.5% Total Net Sales $ 1,015,125 $ 993,857
Schedule of percentage-of-completion balances	The following table presents the balances of over time accounting accounts which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands): March 30, December 29, March 31, 2019 2018 2018 Cost and Earnings in Excess of Billings $ 7,880 $ 6,945 $ 2,517 Billings in Excess of Cost and Earnings 5,020 3,245 3,386

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 30, 2019
EARNINGS PER SHARE
Schedule of Computation of earnings per share	The computation of earnings per share (“EPS”) is as follows (in thousands): Three Months Ended March 30, March 31, 2019 2018 Numerator: Net earnings attributable to controlling interest $ 35,540 $ 32,833 Adjustment for earnings allocated to non-vested restricted common stock (865) (724) Net earnings for calculating EPS $ 34,675 $ 32,109 Denominator: Weighted average shares outstanding 61,372 61,636 Adjustment for non-vested restricted common stock (1,493) (1,358) Shares for calculating basic EPS 59,879 60,278 Effect of dilutive restricted common stock 75 85 Shares for calculating diluted EPS 59,954 60,363 Net earnings per share: Basic $ 0.58 $ 0.53 Diluted $ 0.58 $ 0.53

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	3 Months Ended
	Mar. 30, 2019
BUSINESS COMBINATIONS
Business Acquisitions Accounted for Using Purchase Method	We completed the following acquisitions in 2018, none in 2019, 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 October 22, 2018 $15,115 $ 8,592 $ 6,523 North Pak-Rite, LTD ("Pak-Rite") A designer and manufacturer of packaging for high-value products, such as medical, aerospace and automation equipment. Pak-Rite had annual sales of approximately $15 million. The acquisition of Pak-Rite allows us to grow our portfolio of packaging products and our presence in this region. July 31, 2018 $1,016 $ 250 $ 766 West The Pallet Place, LLC ("Pallet Place") A manufacturer and distributor of total packaging solutions in timber, crates, skids, and pallets. Pallet Place had annual sales of approximately $5 million. The acquisition of Pallet Place allows us to increase our industrial business and creates operating leverage by consolidating with another regional operation. June 1, 2018 $23,866 $ 12,497 $ 11,369 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 allows us to enhance 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 of 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 $1,347 $ 1,287 $ 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 $5,784 $ 50 $ 5,734 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.

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	3 Months Ended
	Mar. 30, 2019
SEGMENT REPORTING
Segment Reporting	Three Months Ended March 30, 2019 North South West All Other Corporate Total Net sales to outside customers $ 278,333 $ 244,242 $ 360,097 $ 132,453 $ — $ 1,015,125 Intersegment net sales 11,697 18,617 12,929 57,653 — 100,896 Segment operating profit (loss) 14,419 15,059 23,254 (4,187) (99) 48,446 Three Months Ended March 31, 2018 North South West All Other Corporate Total Net sales to outside customers $ 270,186 $ 242,020 $ 362,468 $ 119,183 $ — $ 993,857 Intersegment net sales 12,025 18,649 15,599 62,720 — 108,993 Segment operating profit 7,232 18,323 18,695 (3,346) 3,313 44,217

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 30, 2019
LEASES
Future Minimum Lease Payments	Future minimum payments under non-cancelable operating leases on March 30, 2019 are as follows (in thousands): Operating Leases 2019 (remainder of year) $ 13,879 2020 13,432 2021 11,253 2022 9,822 2023 7,867 Thereafter 22,429 Total minimum lease payments $ 78,682 Less present value discount (12,582) Total lease liability $ 66,100 Rent expense was approximately $6.4 million and $6.2 million during the first three months of 2019 and 2018, respectively. For comparison purposes, we have included the future minimum payments under non-cancelable operating leases on December 29, 2018, (in thousands): Operating Leases 12/29/2018 2019 $ 17,242 2020 11,969 2021 9,784 2022 8,346 2023 6,382 Thereafter 22,498 Total minimum lease payments $ 76,221

COMMON STOCK (Tables)

COMMON STOCK (Tables)	3 Months Ended
	Mar. 30, 2019
COMMON STOCK
Schedule of common stock issuances	March 30, 2019 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 10 $ 29.88 Shares issued under the employee stock gift program 2 30.90 Shares issued under the director retainer stock program 1 31.00 Shares issued under the long term stock incentive plan 211 30.83 Shares issued under the executive stock match grants 109 31.57 Forfeitures (3) - Total shares issued under stock grant programs 320 $ 31.08 Shares issued under the deferred compensation plans 138 $ 32.23 March 31, 2018 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 8 $ 32.45 Shares issued under the employee stock gift program 1 36.50 Shares issued under the director retainer stock program 2 37.17 Shares issued under the long term stock incentive plan 164 34.75 Shares issued under the executive stock match grants 94 32.94 Forfeitures (8) - Total shares issued under stock grant programs 253 $ 34.13 Shares issued under the deferred compensation plans 117 $ 36.19

FAIR VALUE - Asset Measured at

FAIR VALUE - Asset Measured at Fair Value (Details) - Estimate of Fair Value Measurement - Recurring - USD ($) $ in Thousands	Mar. 30, 2019	Mar. 31, 2018
Fair Value
Investments at fair value	$ 30,904	$ 25,176
Assets at fair value	30,904	25,176
Money market funds
Fair Value
Investments at fair value	605	4,809
Fixed Income
Fair Value
Investments at fair value	13,623	9,270
Equity
Fair Value
Investments at fair value	8,258	7,202
Hedge funds
Fair Value
Investments at fair value	1,782
Mutual Fund
Fair Value
Investments at fair value	6,636	3,895
Domestic stock funds
Fair Value
Investments at fair value	2,151	1,158
International stock funds
Fair Value
Investments at fair value	2,085	1,159
Target funds
Fair Value
Investments at fair value	257	1,024
Bond funds
Fair Value
Investments at fair value	799	554
Alternative funds
Fair Value
Investments at fair value	1,344
Quoted Prices in Active Markets (Level 1)
Fair Value
Investments at fair value	18,810	12,231
Assets at fair value	18,810	12,231
Quoted Prices in Active Markets (Level 1) | Money market funds
Fair Value
Investments at fair value	56	65
Quoted Prices in Active Markets (Level 1) | Fixed Income
Fair Value
Investments at fair value	3,860	2,159
Quoted Prices in Active Markets (Level 1) | Equity
Fair Value
Investments at fair value	8,258	7,202
Quoted Prices in Active Markets (Level 1) | Mutual Fund
Fair Value
Investments at fair value	6,636	2,805
Quoted Prices in Active Markets (Level 1) | Domestic stock funds
Fair Value
Investments at fair value	2,151	1,158
Quoted Prices in Active Markets (Level 1) | International stock funds
Fair Value
Investments at fair value	2,085	1,159
Quoted Prices in Active Markets (Level 1) | Target funds
Fair Value
Investments at fair value	257	281
Quoted Prices in Active Markets (Level 1) | Bond funds
Fair Value
Investments at fair value	799	207
Quoted Prices in Active Markets (Level 1) | Alternative funds
Fair Value
Investments at fair value	1,344
Prices with Other Observable Inputs (Level 2)
Fair Value
Investments at fair value	10,312	12,945
Assets at fair value	10,312	12,945
Prices with Other Observable Inputs (Level 2) | Money market funds
Fair Value
Investments at fair value	549	4,744
Prices with Other Observable Inputs (Level 2) | Fixed Income
Fair Value
Investments at fair value	9,763	7,111
Prices with Other Observable Inputs (Level 2) | Mutual Fund
Fair Value
Investments at fair value		1,090
Prices with Other Observable Inputs (Level 2) | Target funds
Fair Value
Investments at fair value		743
Prices with Other Observable Inputs (Level 2) | Bond funds
Fair Value
Investments at fair value		$ 347
Prices with Unobservable Inputs (Level 3)
Fair Value
Investments at fair value	1,782
Assets at fair value	1,782
Prices with Unobservable Inputs (Level 3) | Hedge funds
Fair Value
Investments at fair value	$ 1,782

FAIR VALUE - Available for Sale

FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. $ in Thousands	Mar. 30, 2019USD ($)
Available-for-sale securities
Total Securities Cost	$ 28,359
Unrealized Gain (Loss)	969
Total Fair Value	29,328
Fixed Income
Available-for-sale securities
Debt Securities Cost	13,565
Debt Securities Unrealized Gain/(Loss)	58
Debt Securities Fair Value	13,623
Equity
Available-for-sale securities
Equity Securities Cost	7,235
Equity Securities Unrealized Gain/(Loss)	1,023
Equity Securities Fair Value	8,258
Mutual Fund
Available-for-sale securities
Debt Securities Cost	5,815
Debt Securities Unrealized Gain/(Loss)	(150)
Debt Securities Fair Value	5,665
Hedge funds
Available-for-sale securities
Debt Securities Cost	1,744
Debt Securities Unrealized Gain/(Loss)	38
Debt Securities Fair Value	$ 1,782

REVENUE RECOGNITION - Disaggreg

REVENUE RECOGNITION - Disaggregated revenue (Details) $ in Thousands	3 Months Ended
	Mar. 30, 2019USD ($)item	Mar. 31, 2018USD ($)	Dec. 29, 2018USD ($)	Dec. 31, 2017USD ($)
Revenue Recognition
Retained earnings	$ 875,457	$ 768,223	$ 839,917
Number of markets in which the entity operates (in markets) | item	3
Total Gross Sales	$ 1,031,605	1,011,667
Sales Allowances	(16,480)	(17,810)
Total Net Sales	$ 1,015,125	993,857
Change %	2.00%
Change % in sales allowances	(7.50%)
Change % in net sales	2.10%
North
Revenue Recognition
Total Net Sales	$ 278,333	270,186
West
Revenue Recognition
Total Net Sales	360,097	362,468
FOB Shipping Point Revenue
Revenue Recognition
Total Gross Sales	$ 996,823	981,691
Change %	1.50%
Construction Contract Revenue
Revenue Recognition
Total Gross Sales	$ 34,782	29,976
Change %	16.00%
Construction Contract Revenue | North
Revenue Recognition
Total Gross Sales	$ 19,400	20,600
Construction Contract Revenue | West
Revenue Recognition
Total Gross Sales	$ 15,400	$ 9,400
Minimum
Revenue Recognition
Number of days revenue is recognized	2 days
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-31 | Construction Contract Revenue
Revenue Recognition
Number of months to complete contract projects	6 months
Maximum
Revenue Recognition
Number of days revenue is recognized	3 days
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-03-31 | Construction Contract Revenue
Revenue Recognition
Number of months to complete contract projects	18 months
Adjustment | ASU 2014-09
Revenue Recognition
Retained earnings				$ 0

REVENUE RECOGNITION - Percentag

REVENUE RECOGNITION - Percentage of completion (Details) - USD ($) $ in Thousands	Mar. 30, 2019	Dec. 29, 2018	Mar. 31, 2018
REVENUE RECOGNITION
Cost and Earnings in Excess of Billings	$ 7,880	$ 6,945	$ 2,517
Billings in Excess of Cost and Earnings	$ 5,020	$ 3,245	$ 3,386

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Numerator:
Net earnings attributable to controlling interest	$ 35,540	$ 32,833
Adjustment for earnings allocated to non-vested restricted common stock	(865)	(724)
Net earnings for calculating EPS	$ 34,675	$ 32,109
Denominator:
Weighted average shares outstanding (in shares)	61,372	61,636
Adjustment for non-vested restricted common stock (in shares)	(1,493)	(1,358)
Shares for calculating basic EPS (in shares)	59,879	60,278
Effect of dilutive restricted common stock (in shares)	75	85
Shares for calculating diluted EPS (in shares)	59,954	60,363
Net earnings per share
Basic (USD per share)	$ 0.58	$ 0.53
Diluted (USD per share)	$ 0.58	$ 0.53

COMMITMENTS, CONTINGENCIES, A_2

COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Long-term commitment
Outstanding purchase commitments on capital projects	$ 18.5
Surety Bonds and Letters of Credit
Outstanding letters of credit	$ 30.6
Remediation reserves
Environmental reserves, discount rate (as a percent)	0.00%
Estimated costs to complete future remediation efforts	$ 2	$ 2.6
Open Projects
Surety Bonds and Letters of Credit
Payment and performance bonds outstanding	13.6
Completed Projects
Surety Bonds and Letters of Credit
Payment and performance bonds outstanding	9.1
Insurance Contracts
Surety Bonds and Letters of Credit
Outstanding letters of credit	20.8
Revenue Bonds
Surety Bonds and Letters of Credit
Outstanding letters of credit	$ 9.8

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands	Oct. 22, 2018	Jul. 31, 2018	Jun. 01, 2018	Apr. 09, 2018	Apr. 03, 2018	Jan. 23, 2018	Jan. 15, 2018	Mar. 30, 2019
Business Acquisition
Aggregate acquisitions' revenue								$ 28,500
Aggregate acquisitions' operating profit								$ 1,200
Pak-Rite | North
Business Acquisition
Purchase Price	$ 15,115
Percentage of assets purchased (as a percent)	100.00%
Intangible Assets	$ 8,592
Net Tangible Assets	6,523
Acquired entity, prior year sales	$ 15,000
Pallet Place | West
Business Acquisition
Purchase Price		$ 1,016
Percentage of assets purchased (as a percent)		100.00%
Intangible Assets		$ 250
Net Tangible Assets		766
Acquired entity, prior year sales		$ 5,000
North American Container Corporation | South
Business Acquisition
Purchase Price			$ 23,866
Percentage of assets purchased (as a percent)			100.00%
Intangible Assets			$ 12,497
Net Tangible Assets			11,369
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				$ 12,000
Expert Packaging | All Other
Business Acquisition
Purchase Price					$ 1,347
Percentage of assets purchased (as a percent)					100.00%
Intangible Assets					$ 1,287
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							$ 5,784
Percentage of assets purchased (as a percent)							100.00%
Intangible Assets							$ 50
Net Tangible Assets							5,734
Acquired entity, prior year sales							$ 25,000

SEGMENT REPORTING - NARRATIVE (

SEGMENT REPORTING - NARRATIVE (Details)	Mar. 30, 2019item
SEGMENT REPORTING
Number of markets in which the entity operates (in markets)	3

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Segment Reporting
NET SALES	$ 1,015,125	$ 993,857
Segment operating profit (loss)	48,446	44,217
Intersegment net sales
Segment Reporting
NET SALES	100,896	108,993
Corporate
Segment Reporting
Segment operating profit (loss)	(99)	3,313
North
Segment Reporting
NET SALES	278,333	270,186
Segment operating profit (loss)	14,419	7,232
North | Intersegment net sales
Segment Reporting
NET SALES	11,697	12,025
South
Segment Reporting
NET SALES	244,242	242,020
Segment operating profit (loss)	15,059	18,323
South | Intersegment net sales
Segment Reporting
NET SALES	18,617	18,649
West
Segment Reporting
NET SALES	360,097	362,468
Segment operating profit (loss)	23,254	18,695
West | Intersegment net sales
Segment Reporting
NET SALES	12,929	15,599
All Other
Segment Reporting
NET SALES	132,453	119,183
Segment operating profit (loss)	(4,187)	(3,346)
All Other | Intersegment net sales
Segment Reporting
NET SALES	$ 57,653	$ 62,720

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
INCOME TAXES
Effective income tax rate	24.30%	22.20%

LEASES (Details)

LEASES (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018	Dec. 30, 2018	Dec. 29, 2018
Leases
Retained earnings	$ 875,457	$ 768,223		$ 839,917
Lease, Practical Expedients, Package	true
Lease, Practical Expedient, Use of Hindsight	false
Right-of-use assets	$ 66,100
Operating lease liability	$ 66,100
Lessee, Operating Lease, Existence of Option to Extend	true
Rent expense	$ 6,400	$ 6,200
Operating lease weighted average remaining term	7 years 15 days
Operating lease weighted average discount rate	3.78%
Future minimum payments
2019 (remainder of year)	$ 13,879
2020	13,432
2021	11,253
2022	9,822
2023	7,867
Thereafter	22,429
Total minimum lease payments	78,682
Less present value discount	(12,582)
Total lease liability	$ 66,100
Future minimum payments under non-cancelable operating leases
2019				17,242
2020				11,969
2021				9,784
2022				8,346
2023				6,382
Thereafter				22,498
Total minimum lease payments				$ 76,221
ASU 2016-02 | Restatement
Leases
Retained earnings			$ 0
Minimum
Leases
Length of lease (in years)	1 year
Renewal options of lease	5 years
Minimum | Motor vehicles
Leases
Length of lease (in years)	1 year
Minimum | Equipment
Leases
Length of lease (in years)	1 year
Minimum | Aircraft
Leases
Length of lease (in years)	1 year
Maximum
Leases
Length of lease (in years)	10 years
Renewal options of lease	15 years
Maximum | Motor vehicles
Leases
Length of lease (in years)	10 years
Maximum | Equipment
Leases
Length of lease (in years)	10 years
Maximum | Aircraft
Leases
Length of lease (in years)	10 years
Medley Florida Property
Leases
Length of lease (in years)		2 years
Property sale
Sale price of property		$ 36,000
Pre-tax gain on sale of property		$ 7,000

COMMON STOCK - Common Stock Iss

COMMON STOCK - Common Stock Issuances (Details) - $ / shares shares in Thousands	3 Months Ended
	Mar. 30, 2019	Mar. 31, 2018
Stock Purchase Plan
Common Stock
Common stock issued	10	8
Average Share Price
Common stock issued (dollars per share)	$ 29.88	$ 32.45
Stock Gift Program
Common Stock
Common stock issued	2	1
Average Share Price
Common stock issued (dollars per share)	$ 30.90	$ 36.50
Stock Retainer Plan
Common Stock
Common stock issued	1	2
Average Share Price
Common stock issued (dollars per share)	$ 31	$ 37.17
LTSIP
Common Stock
Common stock issued	211	164
Average Share Price
Common stock issued (dollars per share)	$ 30.83	$ 34.75
Executive Stock Match Grants
Common Stock
Common stock issued	109	94
Average Share Price
Common stock issued (dollars per share)	$ 31.57	$ 32.94
Deferred Compensation Plans
Common Stock
Common stock issued	138	117
Average Share Price
Common stock issued (dollars per share)	$ 32.23	$ 36.19
Stock grant programs
Common Stock
Forfeitures	(3)	(8)
Common stock issued, net of forfeitures	320	253
Average Share Price
Common stock issued (dollars per share)	$ 31.08	$ 34.13