| 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. During the third quarter and the first nine months of 2019, management retrospectively reallocated the related bonus expense from Corporate to their respective segment to better assess the reporting unit’s productivity. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 28, 2019 ​ North South West All Other Corporate Total Net sales to outside customers ​ $ 352,642 $ 227,896 ​ $ 413,183 ​ $ 169,305 ​ $ — ​ $ 1,163,026 ​ Intersegment net sales ​ 15,928 ​ 15,462 ​ 12,982 ​ 54,512 ​ — ​ 98,884 ​ Segment operating profit ​ 22,914 ​ 12,968 ​ 28,949 ​ (505) ​ 6,141 ​ 70,467 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 29, 2018 ​ North South West All Other Corporate Total Net sales to outside customers ​ $ 341,334 $ 270,077 ​ $ 434,123 ​ $ 167,168 ​ $ — ​ $ 1,212,702 ​ Intersegment net sales ​ 15,259 ​ 21,360 ​ 14,121 ​ 56,771 ​ — ​ 107,511 ​ Segment operating profit ​ 12,061 ​ 8,304 ​ 21,404 ​ 5,171 ​ 10,051 ​ 56,991 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 28, 2019 ​ North South West All Other Corporate Total Net sales to outside customers ​ $ 1,011,217 $ 730,939 ​ $ 1,194,553 ​ $ 481,260 ​ $ — ​ $ 3,417,969 Intersegment net sales ​ 46,000 ​ 54,796 ​ 40,602 ​ 177,259 ​ — ​ 318,657 Segment operating profit ​ 63,105 ​ 42,710 ​ 77,626 ​ (421) ​ 10,130 ​ 193,150 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Nine Months Ended September 29, 2018 ​ North South West All Other Corporate Total Net sales to outside customers ​ $ 1,002,341 $ 803,417 ​ $ 1,253,416 ​ $ 441,825 ​ $ — ​ $ 3,500,999 Intersegment net sales ​ 45,841 ​ 60,683 ​ 44,183 ​ 181,450 ​ — ​ 332,157 Segment operating profit ​ 36,680 ​ 39,489 ​ 65,923 ​ 5,894 ​ 13,839 ​ 161,825 ​ ​ ​ Beginning on January 1, 2020, the Company will be re-organized around the markets it serves rather than geography. The business segments will primarily align with the following markets: UFP Retail, UFP Construction and UFP Industrial. We believe this change in segmentation will, among other factors, allow for a more specialized and consistent sales approach among all Universal operations, more efficient use of resources and capital, and quicker introduction of new products and services. |
