UFP Industries (UFPI) 10-Q30 Jul 202020 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information	6 Months Ended
Document and Entity Information	Jun. 27, 2020shares
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 27, 2020
Entity File Number	0-22684
Entity Registrant Name	UFP INDUSTRIES, INC.
Entity Incorporation, State or Country Code	MI
Entity Tax Identification Number	38-1465835
Entity Address, Address Line One	2801 East Beltline NE
Entity Address, City or Town	Grand Rapids
Entity Address, State or Province	MI
Entity Address, Postal Zip Code	49525
City Area Code	616
Local Phone Number	364-6161
Title of 12(b) Security	Common Stock
Trading Symbol	UFPI
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)	61,169,181
Current Fiscal Year End Date	--12-26
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000912767
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019	Jun. 29, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 200,546	$ 168,336	$ 20,497
Restricted cash	724	330	1,024
Investments	19,195	18,527	16,776
Accounts receivable, net	522,930	364,027	483,263
Inventories:
Raw materials	244,073	236,283	258,078
Finished goods	215,351	250,591	270,602
Total inventories	459,424	486,874	528,680
Refundable income taxes		13,272
Other current assets	33,786	41,706	46,868
TOTAL CURRENT ASSETS	1,236,605	1,093,072	1,097,108
DEFERRED INCOME TAXES	2,058	2,763	2,341
RESTRICTED INVESTMENTS	17,162	16,214	14,856
RIGHT OF USE ASSETS	77,039	80,167	70,650
OTHER ASSETS	24,205	24,884	23,328
GOODWILL	247,482	229,536	225,269
INDEFINITE-LIVED INTANGIBLE ASSETS	7,350	7,354	7,359
OTHER INTANGIBLE ASSETS, NET	45,131	48,313	41,176
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment	922,427	884,963	851,565
Less accumulated depreciation and amortization	(520,851)	(497,789)	(482,993)
PROPERTY, PLANT AND EQUIPMENT, NET	401,576	387,174	368,572
TOTAL ASSETS	2,058,608	1,889,477	1,850,659
CURRENT LIABILITIES:
Cash overdraft			24,972
Accounts payable	199,338	142,479	189,649
Accrued liabilities:
Compensation and benefits	129,290	141,892	100,409
Income taxes	25,109		739
Other	63,278	51,572	48,746
Current portion of lease liability	15,411	15,283	14,918
Current portion of long-term debt	2,786	2,816	173
TOTAL CURRENT LIABILITIES	435,212	354,042	379,606
LONG-TERM DEBT	161,057	160,867	187,471
LEASE LIABILITY	61,674	64,884	55,875
DEFERRED INCOME TAXES	22,685	22,880	14,773
OTHER LIABILITIES	38,655	29,071	29,701
TOTAL LIABILITIES	719,283	631,744	667,426
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, 61,169,181, 61,408,589 and 61,366,680	61,169	61,409	61,367
Additional paid-in capital	213,809	192,173	192,783
Retained earnings	1,057,817	995,022	917,704
Accumulated other comprehensive income	(8,396)	(4,889)	(4,479)
Total controlling interest shareholders' equity	1,324,399	1,243,715	1,167,375
Noncontrolling interest	14,926	14,018	15,858
TOTAL SHAREHOLDERS' EQUITY	1,339,325	1,257,733	1,183,233
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,058,608	$ 1,889,477	$ 1,850,659

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 27, 2020	Dec. 28, 2019	Jun. 29, 2019
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)	61,169,181	61,408,589	61,366,680
Common stock, shares outstanding (in shares)	61,169,181	61,408,589	61,366,680

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
NET SALES	$ 1,242,001	$ 1,239,817	$ 2,274,063	$ 2,254,943
COST OF GOODS SOLD	1,037,070	1,053,091	1,901,896	1,913,950
GROSS PROFIT	204,931	186,726	372,167	340,993
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	113,781	112,891	223,121	218,207
OTHER	(1,209)	(402)	(1,944)	103
EARNINGS FROM OPERATIONS	92,359	74,237	150,990	122,683
INTEREST EXPENSE	1,898	2,407	3,805	4,867
INTEREST INCOME	(189)	(512)	(530)	(757)
UNREALIZED LOSS (GAIN) ON INVESTMENTS AND OTHER	(2,701)	(170)	472	(1,518)
NET INTEREST EXPENSE	(992)	1,725	3,747	2,592
EARNINGS BEFORE INCOME TAXES	93,351	72,512	147,243	120,091
INCOME TAXES	23,657	17,367	36,979	28,944
NET EARNINGS	69,694	55,145	110,264	91,147
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST	(3,231)	(630)	(3,642)	(1,092)
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST	$ 66,463	$ 54,515	$ 106,622	$ 90,055
EARNINGS PER SHARE - BASIC (USD per share)	$ 1.08	$ 0.88	$ 1.73	$ 1.46
EARNINGS PER SHARE - DILUTED (USD per share)	$ 1.08	$ 0.88	$ 1.73	$ 1.46
OTHER COMPREHENSIVE INCOME:
NET EARNINGS	$ 69,694	$ 55,145	$ 110,264	$ 91,147
OTHER COMPREHENSIVE GAIN (LOSS)	2,839	471	(5,717)	1,844
COMPREHENSIVE INCOME	72,533	55,616	104,547	92,991
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	(3,356)	(791)	(1,432)	(1,477)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST	$ 69,177	$ 54,825	$ 103,115	$ 91,514

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. 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
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						91,147
Ending balance at Jun. 29, 2019	61,367	192,783	917,704	(4,479)	15,858	1,183,233
Beginning balance at Mar. 30, 2019	61,352	190,879	875,457	(4,789)	15,467	1,138,366
Increase (Decrease) in Stockholders' Equity
Net earnings			54,515		630	55,145
Foreign currency translation adjustment				151	161	312
Unrealized gain (loss) on investment & foreign currency				159		159
Distributions to noncontrolling interest					(400)	(400)
Cash dividends			(12,271)			(12,271)
Issuance of shares under employee stock purchase plans	9	272				281
Issuance of shares under stock grant programs	(11)	(262)	3			(270)
Issuance of shares under deferred compensation plans	17	(17)
Expense associated with share-based compensation arrangements		885				885
Accrued expense under deferred compensation plans		1,026				1,026
Ending balance at Jun. 29, 2019	61,367	192,783	917,704	(4,479)	15,858	1,183,233
Beginning balance at Dec. 28, 2019	61,409	192,173	995,022	(4,889)	14,018	1,257,733
Increase (Decrease) in Stockholders' Equity
Net earnings			40,159		411	40,570
Foreign currency translation adjustment				(5,951)	(2,335)	(8,286)
Unrealized loss on debt securities				(270)		(270)
Distributions to noncontrolling interest					(299)	(299)
Additional purchases of noncontrolling interest		130			(225)	(95)
Cash dividends			(7,730)			(7,730)
Issuance of shares under employee stock purchase plans	10	309				319
Issuance of shares under stock grant programs	350	12,454	1			12,805
Issuance of shares under deferred compensation plans	89	(89)
Repurchase of shares	(756)		(28,456)			(29,212)
Expense associated with share-based compensation arrangements		1,404				1,404
Accrued expense under deferred compensation plans		5,343				5,343
Ending balance at Mar. 28, 2020	61,102	211,724	998,996	(11,110)	11,570	1,272,282
Beginning balance at Dec. 28, 2019	61,409	192,173	995,022	(4,889)	14,018	1,257,733
Increase (Decrease) in Stockholders' Equity
Net earnings						110,264
Ending balance at Jun. 27, 2020	61,169	213,809	1,057,817	(8,396)	14,926	1,339,325
Beginning balance at Mar. 28, 2020	61,102	211,724	998,996	(11,110)	11,570	1,272,282
Increase (Decrease) in Stockholders' Equity
Net earnings			66,463		3,231	69,694
Foreign currency translation adjustment				2,026	125	2,151
Unrealized loss on debt securities				688		688
Cash dividends			(7,644)			(7,644)
Issuance of shares under employee stock purchase plans	10	367				377
Issuance of shares under stock grant programs	43	(174)	2			(129)
Issuance of shares under deferred compensation plans	14	(14)
Expense associated with share-based compensation arrangements		824				824
Accrued expense under deferred compensation plans		1,082				1,082
Ending balance at Jun. 27, 2020	$ 61,169	$ 213,809	$ 1,057,817	$ (8,396)	$ 14,926	$ 1,339,325

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Jun. 27, 2020	Mar. 28, 2020	Jun. 29, 2019	Mar. 30, 2019
Increase (Decrease) in Stockholders' Equity
Cash dividends per share (USD per share)	$ 0.125	$ 0.125	$ 0.200
Issuance of shares under employee stock plans (in shares)	9,714	10,549	8,694	10,259
Issuance of shares under stock grant programs (in shares)	42,880	350,124	10,819	320,069
Issuance of shares under deferred compensation plans (in shares)	14,106	89,616	16,433	138,295
Repurchase of shares (in shares)		756,397

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 110,264	$ 91,147
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation	31,330	29,200
Amortization of intangibles	3,129	2,946
Expense associated with share-based and grant compensation arrangements	2,303	2,209
Deferred income taxes (credit)	290	(536)
Unrealized loss (gain) on investments	473	(1,518)
Net gain on disposition of assets and impairment of assets	(271)	(321)
Changes in:
Accounts receivable	(155,554)	(139,468)
Inventories	25,983	28,008
Accounts payable and cash overdraft	57,017	49,947
Accrued liabilities and other	72,246	9,334
NET CASH FROM OPERATING ACTIVITIES	147,210	70,948
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(46,730)	(42,477)
Proceeds from sale of property, plant and equipment	644	977
Acquisitions and purchases of non-controlling interest, net of cash received	(18,689)	(5,034)
Purchases of investments	(20,094)	(4,859)
Proceeds from sale of investments	18,339	3,667
Other	318	(10)
NET CASH USED IN INVESTING ACTIVITIES	(66,212)	(47,736)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities	6,759	393,434
Repayments under revolving credit facilities	(6,498)	(408,027)
Repayment of debt	(3,077)	(3,061)
Proceeds from issuance of common stock	697	542
Dividends paid to shareholders	(15,374)	(12,271)
Distributions to noncontrolling interest	(299)	(900)
Repurchase of common stock	(29,212)
Other	32	28
NET CASH USED IN FINANCING ACTIVITIES	(46,972)	(30,255)
Effect of exchange rate changes on cash	(1,422)	366
NET CHANGE IN CASH AND CASH EQUIVALENTS	32,604	(6,677)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR	168,666	28,198
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$ 201,270	$ 21,521

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL - USD ($) $ in Thousands	6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH:
Cash and cash equivalents, beginning of period	$ 168,336	$ 27,316
Restricted cash, beginning of period	330	882
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR	168,666	28,198
Cash and cash equivalents, end of period	200,546	20,497
Restricted cash, end of period	724	1,024
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	201,270	21,521
SUPPLEMENTAL INFORMATION:
Interest paid	3,793	4,658
Income taxes paid	1,778	14,569
NON-CASH FINANCING ACTIVITIES:
Common stock issued under deferred compensation plans	$ 5,538	$ 5,041

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Jun. 27, 2020
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 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 28, 2019. On April 22, 2020, the shareholders approved changing the name of the Company from Universal Forest Products, Inc., to UFP Industries, Inc. 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 June 29, 2019 balances in the accompanying unaudited condensed consolidated balance sheets. On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide, which subsequently resulted in a variety of “stay at home” orders issued by states in which we operate. As of the date of this filing, Consequently, all but three of our 150 plant locations remain operating. We cannot reasonably estimate the length or severity of this pandemic and government restrictions on business activity, or the extent to which these restrictions may materially impact our consolidated financial position, consolidated results of operations, and consolidated cash flows in fiscal 2020.

FAIR VALUE

FAIR VALUE	6 Months Ended
FAIR VALUE	Jun. 27, 2020
FAIR VALUE
FAIR VALUE	B. FAIR VALUE We apply the provisions of ASC 820, Fair Value Measurements and Disclosures June 27, 2020 June 29, 2019 Quoted Prices with Quoted Prices with Prices in Other Prices with Prices in Other Prices with Active Observable Unobservable Active Observable Unobservable Markets Inputs Inputs Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Money market funds $ 57 $ 3,084 $ — $ 3,141 $ 57 $ 1,051 $ — $ 1,108 Fixed income funds 247 16,209 — 16,456 2,709 11,222 — 13,931 Equity securities 9,958 — — 9,958 8,651 — — 8,651 Alternative investments — — 1,836 1,836 — — 1,829 1,829 Mutual funds: — Domestic stock funds 6,359 — — 6,359 2,472 — — 2,472 International stock funds 1,124 — — 1,124 2,059 — — 2,059 Target funds 270 — — 270 266 — — 266 Bond funds 232 — — 232 815 — — 815 Alternative funds 332 — — 332 1,696 — — 1,696 Total mutual funds 8,317 — — 8,317 7,308 — — 7,308 Total $ 18,579 $ 19,293 $ 1,836 $ 39,708 $ 18,725 $ 12,273 $ 1,829 $ 32,827 Assets at fair value $ 18,579 $ 19,293 $ 1,836 $ 39,708 $ 18,725 $ 12,273 $ 1,829 $ 32,827 From the assets measured at fair value as of June 27, 2020, listed in the table above, $19.2 million of mutual funds, equity securities, and alternative investments are held in Investments, $0.9 million of money market and mutual funds are held in Other Assets for our deferred compensation plan, and $16.5 million of fixed income funds and $3.1 million of money markets funds are held in Restricted Investments. We maintain money market, mutual funds, bonds, and/or stocks in our non-qualified deferred compensation plan, our wholly owned licensed captive insurance company, and assets held in financial institutions. These funds are valued at prices quoted in an active exchange market and are included in “Cash and Cash Equivalents”, “Investments”, “Other Assets”, and “Restricted Investments”. We have elected not to apply the fair value option under ASC 825, Financial Instruments, In accordance with our investment policy, our wholly-owned captive, Ardellis Insurance Ltd. (“Ardellis”), maintains an investment portfolio, totaling $35.7 million as of June 27, 2020, consisting of domestic and international stocks, alternative investments, 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 27, 2020 Unrealized Cost Gain/(Loss) Fair Value Fixed Income $ 15,497 $ 959 $ 16,456 Equity 9,107 850 9,957 Mutual Funds 6,553 849 7,402 Alternative Investments 1,857 (22) 1,835 Total $ 33,014 $ 2,636 $ 35,650 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 alternative investments consist of the private real estate income trust which is valued as a Level 3 asset. The net unrealized gain was $2.6 million. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of June 27, 2020.

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
REVENUE RECOGNITION	Jun. 27, 2020
REVENUE RECOGNITION
REVENUE RECOGNITION	C. REVENUE RECOGNITION Within the three primary segments (Retail, Industrial, and Construction) that the Company operates, there are a variety of written agreements governing the sale of our products and services. 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 rd 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, 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 The following table presents our gross revenues disaggregated by revenue source: Three Months Ended Six Months Ended (in thousands) June 27, June 29, June 27, June 29, Market Classification 2020 2019 % Change 2020 2019 % Change FOB Shipping Point Revenue $ 1,241,167 $ 1,220,844 1.7% $ 2,259,073 $ 2,217,667 1.9% Construction Contract Revenue 32,342 43,663 -25.9% 65,142 78,445 -17.0% Total Gross Sales 1,273,509 1,264,507 0.7% 2,324,215 2,296,112 1.2% Sales Allowances (31,508) (24,690) 27.6% (50,152) (41,169) 21.8% Total Net Sales $ 1,242,001 $ 1,239,817 0.2% $ 2,274,063 $ 2,254,943 0.8% The Construction segment comprises the construction contract revenue shown above. 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 27, December 28, June 29, 2020 2019 2019 Cost and Earnings in Excess of Billings $ 4,377 $ 4,690 $ 6,309 Billings in Excess of Cost and Earnings 10,658 6,622 5,222

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
EARNINGS PER SHARE	Jun. 27, 2020
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 27, June 29, June 27, June 29, 2020 2019 2020 2019 Numerator: Net earnings attributable to controlling interest $ 66,463 $ 54,515 $ 106,622 $ 90,055 Adjustment for earnings allocated to non-vested restricted common stock (1,887) (1,384) (2,921) (2,245) Net earnings for calculating EPS $ 64,576 $ 53,131 $ 103,701 $ 87,810 Denominator: Weighted average shares outstanding 61,494 61,691 61,659 61,544 Adjustment for non-vested restricted common stock (1,746) (1,566) (1,689) (1,534) Shares for calculating basic EPS 59,748 60,125 59,970 60,010 Effect of dilutive restricted common stock 18 23 18 21 Shares for calculating diluted EPS 59,766 60,148 59,988 60,031 Net earnings per share: Basic $ 1.08 $ 0.88 $ 1.73 $ 1.46 Diluted $ 1.08 $ 0.88 $ 1.73 $ 1.46

COMMITMENTS, CONTINGENCIES, AND

COMMITMENTS, CONTINGENCIES, AND GUARANTEES	6 Months Ended
COMMITMENTS, CONTINGENCIES, AND GUARANTEES	Jun. 27, 2020
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 On a consolidated basis, we have reserved approximately $1.9 million on June 27, 2020 and $2.0 million on June 29, 2019, respectively, representing the estimated costs to complete future remediation efforts. These amounts have not been reduced by an insurance receivable. In addition, on June 27, 2020, 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 27, 2020, we had outstanding purchase commitments on commenced capital projects of approximately $23.0 million. We provide a variety of warranties for products we manufacture. Historically, warranty claims have not been material. We also 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 ensure the products and installation services are completed in accordance with our contractual obligations. We have agreed to indemnify the surety for claims properly made against these bonds. As of June 27, 2020, we had approximately $6.8 million outstanding payment and performance bonds for open projects. We had approximately $8.6 million in payment and performance bonds outstanding for completed projects which are still under warranty. On June 27, 2020, we had outstanding letters of credit totaling $37.3 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. As of June 27, 2020, we have irrevocable letters of credit outstanding totaling approximately $27.5 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 UFP Industries, 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 second quarter of 2020 which would require us to recognize a liability on our balance sheet.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	6 Months Ended
BUSINESS COMBINATIONS	Jun. 27, 2020
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS	F. BUSINESS COMBINATIONS We completed the following acquisitions in 2020 and since the end of June 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 March 13, 2020 $21,851 $ 18,289 $ 3,562 Construction Quest Design & Fabrication and Quest Architectural Millwork ("Quest") A designer, fabricator, and installer of premium millwork and case goods for a variety of commercial uses. Quest had annual sales of approximately $22 million. The acquisition of Quest will expand our architectural millwork in the commercial construction business unit, which aligns with our growth goals in the construction segment. September 16, 2019 $12,422 $ 7,464 $ 4,958 Industrial Pallet USA, LLC ("Pallet USA") A manufacturer and recycler of wood pallet and crating products in the Midwest. Pallet USA had annual sales of approximately $18 million. The acquisition of Pallet USA allows us to expand our capacity to manufacture wood-based industrial packaging products and offer new services to customers in the Midwest. August 12, 2019 $17,809 $ 8,290 $ 9,519 Retail Northwest Painting, Inc. ("Northwest") A supplier of pre-painted building materials, including siding, soffit, panels and trim to the Western U.S. Northwest had annual sales of approximately $14 million. The acquisition of Northwest will expand our capacity to produce coated siding and trim for customers in the Northwest and Mountain West regions. The intangible assets for the Quest, Pallet USA, and Northwest acquisitions have not been finalized and allocated to their respective identifiable asset and goodwill accounts. In aggregate, acquisitions completed since the end of June 2019 and not consolidated with other operations contributed approximately $13.8 million in net sales and $1.3 million in operating profits during the second quarter of 2020. Similarly, these acquisitions contributed approximately $22.2 million in net sales and $1.7 million in operating profits in the first six months of 2020.

SEGMENT REPORTING

SEGMENT REPORTING	6 Months Ended
SEGMENT REPORTING	Jun. 27, 2020
SEGMENT REPORTING
SEGMENT REPORTING	G. SEGMENT REPORTING The Company operates manufacturing, treating and distribution facilities internationally, but primarily in the United States. Effective January 1, 2020, the Company re-organized around the markets it serves rather than geography. The prior periods have been recast to reflect the new segment structure. The business segments align with the following markets: UFP Retail Solutions, UFP Construction and UFP Industrial. This change allows for a more specialized and consistent sales approach among Company operations, more efficient use of resources and capital, and quicker introduction of new products and services. The Company manages the operations of its individual locations primarily through a market-centered reporting structure under which each location is included in a business unit and business units are included in our Retail, Industrial, and Construction segments. The exception to this market-centered reporting and management structure is the Company’s International segment, which comprises our Mexico, Canada, and Australia operations and sales and buying offices in other parts of the world. Our International segment and Ardellis (our insurance captive) have been included in the “All Other” column of the table below. The “Corporate” column includes purchasing, transportation and administrative functions that serve our operating segments. Operating results of Corporate primarily consists of over (under) allocated costs. The operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns and leases transportation equipment, are also included in the Corporate column. An inter-company lease charge is assessed to our operating segments for the use of these assets at fair market value rates. Total assets of the Corporate column include unallocated cash and cash equivalents, certain prepaid assets, certain property, equipment and other assets pertaining to the centralized activities of Corporate, UFP Real Estate, Inc., and UFP Transportation Ltd. During the second quarter of 2020, management retrospectively reallocated certain inter-company charges from Corporate to their respective segments to better assess segment profitability. Prior year information in these tables has been restated to reflect these changes. Three Months Ended June 27, 2020 (in thousands) Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 609,190 $ 224,379 $ 359,170 $ 49,411 $ (149) $ 1,242,001 Intersegment net sales 34,104 9,795 16,353 67,712 (127,964) — Segment operating profit 45,775 15,420 19,542 8,633 2,989 92,359 Three Months Ended June 29, 2019 (in thousands) Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 482,090 $ 291,245 $ 414,825 $ 52,669 $ (1,012) $ 1,239,817 Intersegment net sales 39,232 13,596 14,505 56,590 (123,923) — Segment operating profit 22,430 20,709 20,268 3,735 7,095 74,237 Six Months Ended June 27, 2020 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 961,351 $ 480,922 $ 740,325 $ 91,804 $ (339) $ 2,274,063 Intersegment net sales 63,962 21,015 31,776 120,879 (237,632) — Segment operating profit 59,901 31,800 34,031 13,124 12,134 150,990 Six Months Ended June 29, 2019 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 815,190 $ 566,004 $ 779,962 $ 94,779 $ (992) $ 2,254,943 Intersegment net sales 68,803 24,658 26,336 109,719 (229,516) — Segment operating profit 33,300 39,440 34,857 5,929 9,157 122,683 Identifiable intangibles have been transferred and goodwill was re-allocated, based on their relative fair values, to our new segments and reporting units. The following table presents goodwill by segment as of June 27, 2020, and December 28, 2019 (in thousands): Retail Industrial Construction All Other Corporate Total Balance as of December 28, 2019 $ 58,098 $ 81,276 $ 82,911 $ 7,251 $ — $ 229,536 2020 Acquisitions — — 18,289 — — 18,289 2020 Purchase Accounting Adjustments 202 22 — — — 224 Foreign Exchange, Net — — (188) (379) — (567) Balance as of June 27, 2020 $ 58,300 $ 81,298 $ 101,012 $ 6,872 $ — $ 247,482 The following table presents total assets by segment as of June 27, 2020, and December 28, 2019. Total Assets by Segment (in thousands) June 27, December 28, Segment Classification 2020 2019 % Change Retail $ 583,480 $ 402,221 45.1 % Industrial 337,027 377,329 (10.7) Construction 512,111 522,638 (2.0) All Other 145,205 136,990 6.0 Corporate 480,785 450,299 6.8 Total Assets $ 2,058,608 $ 1,889,477 9.0 % Note: During 2020, certain assets were reclassified to a different segment. Prior year information in this table has been restated to reflect these changes.

INCOME TAXES

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 27, 2020
INCOME TAXES
INCOME TAXES	H. INCOME TAXES Effective tax rates differ from statutory federal income tax rates, primarily due to provisions for foreign, state and local income taxes and permanent tax differences. Our effective tax rate was 25.3% in the second quarter of 2020 compared to 24.0% for same period in 2019. Our effective tax rate was 25.1% in the first six months of 2020 compared to 24.1% for the same period in 2019.

COMMON STOCK

COMMON STOCK	6 Months Ended
COMMON STOCK	Jun. 27, 2020
COMMON STOCK
COMMON STOCK	I. COMMON STOCK Below is a summary of common stock issuances for the first six months of 2020 and 2019 (in thousands, except average share price): June 27, 2020 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 20 $ 40.45 Shares issued under the employee stock gift program 2 43.38 Shares issued under the director retainer stock program 45 24.20 Shares issued under the long term stock incentive plan 271 47.51 Shares issued under the executive stock match grants 79 47.60 Forfeitures (4) Total shares issued under stock grant programs 393 $ 44.88 Shares issued under the deferred compensation plans 103 $ 53.39 During the first six months of 2020, we repurchased approximately 756,000 shares of our common stock at an average share price of $38.62. June 29, 2019 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 19 $ 33.63 Shares issued under the employee stock gift program 3 31.94 Shares issued under the director retainer stock program 2 33.74 Shares issued under the long term stock incentive plan 211 30.83 Shares issued under the executive stock match grants 109 31.57 Forfeitures (16) Total shares issued under stock grant programs 309 $ 31.11 Shares issued under the deferred compensation plans 155 $ 32.58 During the first six months of 2019, we did not repurchase any of our common stock.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
SUBSEQUENT EVENTS	Jun. 27, 2020
SUBSEQUENT EVENTS
Subsequent Events	J. SUBSEQUENT EVENTS On July 14, 2020, we acquired the operating assets of T&R Lumber Company and its affiliates, Sullivan & Mann and Kelmar Creations, for $17.0 million. Based in Rancho Cucamonga, California, T&R manufactures and distributes a range of products used primarily by nurseries, including plastic growing containers, pots and trays; wooden stakes; trellises; tree boxes; shipping racks; and other nursery supplies.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	6 Months Ended
BASIS OF PRESENTATION (Policies)	Jun. 27, 2020
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 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 28, 2019. On April 22, 2020, the shareholders approved changing the name of the Company from Universal Forest Products, Inc., to UFP Industries, Inc. 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 June 29, 2019 balances in the accompanying unaudited condensed consolidated balance sheets. On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (COVID-19) a global pandemic and recommended containment and mitigation measures worldwide, which subsequently resulted in a variety of “stay at home” orders issued by states in which we operate. As of the date of this filing, Consequently, all but three of our 150 plant locations remain operating. We cannot reasonably estimate the length or severity of this pandemic and government restrictions on business activity, or the extent to which these restrictions may materially impact our consolidated financial position, consolidated results of operations, and consolidated cash flows in fiscal 2020.
Revenue Recognition	Within the three primary segments (Retail, Industrial, and Construction) that the Company operates, there are a variety of written agreements governing the sale of our products and services. 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 rd 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, 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

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
FAIR VALUE (Tables)	Jun. 27, 2020
FAIR VALUE
Assets measured at fair value	June 27, 2020 June 29, 2019 Quoted Prices with Quoted Prices with Prices in Other Prices with Prices in Other Prices with Active Observable Unobservable Active Observable Unobservable Markets Inputs Inputs Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Money market funds $ 57 $ 3,084 $ — $ 3,141 $ 57 $ 1,051 $ — $ 1,108 Fixed income funds 247 16,209 — 16,456 2,709 11,222 — 13,931 Equity securities 9,958 — — 9,958 8,651 — — 8,651 Alternative investments — — 1,836 1,836 — — 1,829 1,829 Mutual funds: — Domestic stock funds 6,359 — — 6,359 2,472 — — 2,472 International stock funds 1,124 — — 1,124 2,059 — — 2,059 Target funds 270 — — 270 266 — — 266 Bond funds 232 — — 232 815 — — 815 Alternative funds 332 — — 332 1,696 — — 1,696 Total mutual funds 8,317 — — 8,317 7,308 — — 7,308 Total $ 18,579 $ 19,293 $ 1,836 $ 39,708 $ 18,725 $ 12,273 $ 1,829 $ 32,827 Assets at fair value $ 18,579 $ 19,293 $ 1,836 $ 39,708 $ 18,725 $ 12,273 $ 1,829 $ 32,827
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 27, 2020 Unrealized Cost Gain/(Loss) Fair Value Fixed Income $ 15,497 $ 959 $ 16,456 Equity 9,107 850 9,957 Mutual Funds 6,553 849 7,402 Alternative Investments 1,857 (22) 1,835 Total $ 33,014 $ 2,636 $ 35,650

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
REVENUE RECOGNITION (Tables)	Jun. 27, 2020
REVENUE RECOGNITION
Schedule of Disaggregation of revenue	Three Months Ended Six Months Ended (in thousands) June 27, June 29, June 27, June 29, Market Classification 2020 2019 % Change 2020 2019 % Change FOB Shipping Point Revenue $ 1,241,167 $ 1,220,844 1.7% $ 2,259,073 $ 2,217,667 1.9% Construction Contract Revenue 32,342 43,663 -25.9% 65,142 78,445 -17.0% Total Gross Sales 1,273,509 1,264,507 0.7% 2,324,215 2,296,112 1.2% Sales Allowances (31,508) (24,690) 27.6% (50,152) (41,169) 21.8% Total Net Sales $ 1,242,001 $ 1,239,817 0.2% $ 2,274,063 $ 2,254,943 0.8%
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 27, December 28, June 29, 2020 2019 2019 Cost and Earnings in Excess of Billings $ 4,377 $ 4,690 $ 6,309 Billings in Excess of Cost and Earnings 10,658 6,622 5,222

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
EARNINGS PER SHARE (Tables)	Jun. 27, 2020
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 Six Months Ended June 27, June 29, June 27, June 29, 2020 2019 2020 2019 Numerator: Net earnings attributable to controlling interest $ 66,463 $ 54,515 $ 106,622 $ 90,055 Adjustment for earnings allocated to non-vested restricted common stock (1,887) (1,384) (2,921) (2,245) Net earnings for calculating EPS $ 64,576 $ 53,131 $ 103,701 $ 87,810 Denominator: Weighted average shares outstanding 61,494 61,691 61,659 61,544 Adjustment for non-vested restricted common stock (1,746) (1,566) (1,689) (1,534) Shares for calculating basic EPS 59,748 60,125 59,970 60,010 Effect of dilutive restricted common stock 18 23 18 21 Shares for calculating diluted EPS 59,766 60,148 59,988 60,031 Net earnings per share: Basic $ 1.08 $ 0.88 $ 1.73 $ 1.46 Diluted $ 1.08 $ 0.88 $ 1.73 $ 1.46

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	6 Months Ended
BUSINESS COMBINATIONS (Tables)	Jun. 27, 2020
BUSINESS COMBINATIONS
Business Acquisitions Accounted for Using Purchase Method	Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment March 13, 2020 $21,851 $ 18,289 $ 3,562 Construction Quest Design & Fabrication and Quest Architectural Millwork ("Quest") A designer, fabricator, and installer of premium millwork and case goods for a variety of commercial uses. Quest had annual sales of approximately $22 million. The acquisition of Quest will expand our architectural millwork in the commercial construction business unit, which aligns with our growth goals in the construction segment. September 16, 2019 $12,422 $ 7,464 $ 4,958 Industrial Pallet USA, LLC ("Pallet USA") A manufacturer and recycler of wood pallet and crating products in the Midwest. Pallet USA had annual sales of approximately $18 million. The acquisition of Pallet USA allows us to expand our capacity to manufacture wood-based industrial packaging products and offer new services to customers in the Midwest. August 12, 2019 $17,809 $ 8,290 $ 9,519 Retail Northwest Painting, Inc. ("Northwest") A supplier of pre-painted building materials, including siding, soffit, panels and trim to the Western U.S. Northwest had annual sales of approximately $14 million. The acquisition of Northwest will expand our capacity to produce coated siding and trim for customers in the Northwest and Mountain West regions.

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	6 Months Ended
SEGMENT REPORTING (Tables)	Jun. 27, 2020
SEGMENT REPORTING
Segment Reporting	Three Months Ended June 27, 2020 (in thousands) Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 609,190 $ 224,379 $ 359,170 $ 49,411 $ (149) $ 1,242,001 Intersegment net sales 34,104 9,795 16,353 67,712 (127,964) — Segment operating profit 45,775 15,420 19,542 8,633 2,989 92,359 Three Months Ended June 29, 2019 (in thousands) Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 482,090 $ 291,245 $ 414,825 $ 52,669 $ (1,012) $ 1,239,817 Intersegment net sales 39,232 13,596 14,505 56,590 (123,923) — Segment operating profit 22,430 20,709 20,268 3,735 7,095 74,237 Six Months Ended June 27, 2020 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 961,351 $ 480,922 $ 740,325 $ 91,804 $ (339) $ 2,274,063 Intersegment net sales 63,962 21,015 31,776 120,879 (237,632) — Segment operating profit 59,901 31,800 34,031 13,124 12,134 150,990 Six Months Ended June 29, 2019 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 815,190 $ 566,004 $ 779,962 $ 94,779 $ (992) $ 2,254,943 Intersegment net sales 68,803 24,658 26,336 109,719 (229,516) — Segment operating profit 33,300 39,440 34,857 5,929 9,157 122,683
Schedule of Goodwill by Segment	The following table presents goodwill by segment as of June 27, 2020, and December 28, 2019 (in thousands): Retail Industrial Construction All Other Corporate Total Balance as of December 28, 2019 $ 58,098 $ 81,276 $ 82,911 $ 7,251 $ — $ 229,536 2020 Acquisitions — — 18,289 — — 18,289 2020 Purchase Accounting Adjustments 202 22 — — — 224 Foreign Exchange, Net — — (188) (379) — (567) Balance as of June 27, 2020 $ 58,300 $ 81,298 $ 101,012 $ 6,872 $ — $ 247,482
Schedule of assets by segment	Total Assets by Segment (in thousands) June 27, December 28, Segment Classification 2020 2019 % Change Retail $ 583,480 $ 402,221 45.1 % Industrial 337,027 377,329 (10.7) Construction 512,111 522,638 (2.0) All Other 145,205 136,990 6.0 Corporate 480,785 450,299 6.8 Total Assets $ 2,058,608 $ 1,889,477 9.0 % Note: During 2020, certain assets were reclassified to a different segment. Prior year information in this table has been restated to reflect these changes.

COMMON STOCK (Tables)

COMMON STOCK (Tables)	6 Months Ended
COMMON STOCK (Tables)	Jun. 27, 2020
COMMON STOCK
Schedule of common stock issuances	Below is a summary of common stock issuances for the first six months of 2020 and 2019 (in thousands, except average share price): June 27, 2020 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 20 $ 40.45 Shares issued under the employee stock gift program 2 43.38 Shares issued under the director retainer stock program 45 24.20 Shares issued under the long term stock incentive plan 271 47.51 Shares issued under the executive stock match grants 79 47.60 Forfeitures (4) Total shares issued under stock grant programs 393 $ 44.88 Shares issued under the deferred compensation plans 103 $ 53.39 June 29, 2019 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 19 $ 33.63 Shares issued under the employee stock gift program 3 31.94 Shares issued under the director retainer stock program 2 33.74 Shares issued under the long term stock incentive plan 211 30.83 Shares issued under the executive stock match grants 109 31.57 Forfeitures (16) Total shares issued under stock grant programs 309 $ 31.11 Shares issued under the deferred compensation plans 155 $ 32.58

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details)	Jun. 27, 2020location
BASIS OF PRESENTATION
Plant locations closed due to COVID-19	3
Number of plant locations	150

FAIR VALUE - Asset Measured at

FAIR VALUE - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Jun. 29, 2019
Money market funds \| Restricted Investments
Fair Value
Investments at fair value	$ 3,100
Fixed Income \| Restricted Investments
Fair Value
Investments at fair value	16,500
Mutual funds, equity and alternative investments \| Investments
Fair Value
Investments at fair value	19,200
Money market and mutual funds \| Other Assets
Fair Value
Investments at fair value	900
Ardellis Insurance Ltd.
Fair Value
Total Fair Value	35,650
Estimate of Fair Value Measurement \| Recurring
Fair Value
Investments at fair value	39,708	$ 32,827
Assets at fair value	39,708	32,827
Estimate of Fair Value Measurement \| Recurring \| Money market funds
Fair Value
Investments at fair value	3,141	1,108
Estimate of Fair Value Measurement \| Recurring \| Fixed Income
Fair Value
Investments at fair value	16,456	13,931
Estimate of Fair Value Measurement \| Recurring \| Equity
Fair Value
Investments at fair value	9,958	8,651
Estimate of Fair Value Measurement \| Recurring \| Alternative Investments
Fair Value
Investments at fair value	1,836	1,829
Estimate of Fair Value Measurement \| Recurring \| Mutual Fund
Fair Value
Investments at fair value	8,317	7,308
Estimate of Fair Value Measurement \| Recurring \| Domestic stock funds
Fair Value
Investments at fair value	6,359	2,472
Estimate of Fair Value Measurement \| Recurring \| International stock funds
Fair Value
Investments at fair value	1,124	2,059
Estimate of Fair Value Measurement \| Recurring \| Target funds
Fair Value
Investments at fair value	270	266
Estimate of Fair Value Measurement \| Recurring \| Bond funds
Fair Value
Investments at fair value	232	815
Estimate of Fair Value Measurement \| Recurring \| Alternative funds
Fair Value
Investments at fair value	332	1,696
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1)
Fair Value
Investments at fair value	18,579	18,725
Assets at fair value	18,579	18,725
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Money market funds
Fair Value
Investments at fair value	57	57
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Fixed Income
Fair Value
Investments at fair value	247	2,709
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Equity
Fair Value
Investments at fair value	9,958	8,651
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Mutual Fund
Fair Value
Investments at fair value	8,317	7,308
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Domestic stock funds
Fair Value
Investments at fair value	6,359	2,472
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| International stock funds
Fair Value
Investments at fair value	1,124	2,059
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Target funds
Fair Value
Investments at fair value	270	266
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Bond funds
Fair Value
Investments at fair value	232	815
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Alternative funds
Fair Value
Investments at fair value	332	1,696
Estimate of Fair Value Measurement \| Recurring \| Prices with Other Observable Inputs (Level 2)
Fair Value
Investments at fair value	19,293	12,273
Assets at fair value	19,293	12,273
Estimate of Fair Value Measurement \| Recurring \| Prices with Other Observable Inputs (Level 2) \| Money market funds
Fair Value
Investments at fair value	3,084	1,051
Estimate of Fair Value Measurement \| Recurring \| Prices with Other Observable Inputs (Level 2) \| Fixed Income
Fair Value
Investments at fair value	16,209	11,222
Estimate of Fair Value Measurement \| Recurring \| Prices with Unobservable Inputs (Level 3)
Fair Value
Investments at fair value	1,836	1,829
Assets at fair value	1,836	1,829
Estimate of Fair Value Measurement \| Recurring \| Prices with Unobservable Inputs (Level 3) \| Alternative Investments
Fair Value
Investments at fair value	$ 1,836	$ 1,829

FAIR VALUE - Available for Sale

FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. $ in Thousands	Jun. 27, 2020USD ($)
Available-for-sale securities
Total Securities Cost	$ 33,014
Unrealized Gain (Loss)	2,636
Total Fair Value	35,650
Fixed Income
Available-for-sale securities
Debt Securities Cost	15,497
Debt Securities Unrealized Gain/(Loss)	959
Debt Securities Fair Value	16,456
Equity
Available-for-sale securities
Equity Securities Cost	9,107
Equity Securities Unrealized Gain/(Loss)	850
Equity Securities Fair Value	9,957
Mutual Fund
Available-for-sale securities
Debt Securities Cost	6,553
Debt Securities Unrealized Gain/(Loss)	849
Debt Securities Fair Value	7,402
Alternative Investments
Available-for-sale securities
Debt Securities Cost	1,857
Debt Securities Unrealized Gain/(Loss)	(22)
Debt Securities Fair Value	$ 1,835

REVENUE RECOGNITION - Disaggreg

REVENUE RECOGNITION - Disaggregated revenue (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020USD ($)item	Jun. 29, 2019USD ($)	Jun. 27, 2020USD ($)item	Jun. 29, 2019USD ($)	Dec. 28, 2019USD ($)
Revenue Recognition
Retained earnings	$ 1,057,817	$ 917,704	$ 1,057,817	$ 917,704	$ 995,022
Number of markets in which the entity operates (in markets) \| item	3		3
Total Gross Sales	$ 1,273,509	1,264,507	$ 2,324,215	2,296,112
Sales Allowances	(31,508)	(24,690)	(50,152)	(41,169)
Total Net Sales	$ 1,242,001	1,239,817	$ 2,274,063	2,254,943
Change %	0.70%		1.20%
Change % in sales allowances	27.60%		21.80%
Change % in net sales	0.20%		0.80%
FOB Shipping Point Revenue
Revenue Recognition
Total Gross Sales	$ 1,241,167	1,220,844	$ 2,259,073	2,217,667
Change %	1.70%		1.90%
Construction Contract Revenue
Revenue Recognition
Total Gross Sales	$ 32,342	$ 43,663	$ 65,142	$ 78,445
Change %	(25.90%)		(17.00%)
Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-28 \| Construction Contract Revenue
Revenue Recognition
Number of months to complete contract projects	6 months		6 months
Maximum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-28 \| Construction Contract Revenue
Revenue Recognition
Number of months to complete contract projects	18 months		18 months

REVENUE RECOGNITION - Percentag

REVENUE RECOGNITION - Percentage of completion (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019	Jun. 29, 2019
REVENUE RECOGNITION
Cost and Earnings in Excess of Billings	$ 4,377	$ 4,690	$ 6,309
Billings in Excess of Cost and Earnings	$ 10,658	$ 6,622	$ 5,222

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
Numerator:
Net earnings attributable to controlling interest	$ 66,463	$ 54,515	$ 106,622	$ 90,055
Adjustment for earnings allocated to non-vested restricted common stock	(1,887)	(1,384)	(2,921)	(2,245)
Net earnings for calculating EPS	$ 64,576	$ 53,131	$ 103,701	$ 87,810
Denominator:
Weighted average shares outstanding (in shares)	61,494	61,691	61,659	61,544
Adjustment for non-vested restricted common stock (in shares)	(1,746)	(1,566)	(1,689)	(1,534)
Shares for calculating basic EPS (in shares)	59,748	60,125	59,970	60,010
Effect of dilutive restricted common stock (in shares)	18	23	18	21
Shares for calculating diluted EPS (in shares)	59,766	60,148	59,988	60,031
Net earnings per share
Basic (USD per share)	$ 1.08	$ 0.88	$ 1.73	$ 1.46
Diluted (USD per share)	$ 1.08	$ 0.88	$ 1.73	$ 1.46

COMMITMENTS, CONTINGENCIES, A_2

COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 27, 2020	Jun. 29, 2019
Long-term commitment
Outstanding purchase commitments on capital projects	$ 23
Surety Bonds and Letters of Credit
Outstanding letters of credit	$ 37.3
Remediation reserves
Environmental reserves, discount rate (as a percent)	0.00%
Estimated costs to complete future remediation efforts	$ 1.9	$ 2
Open Projects
Surety Bonds and Letters of Credit
Payment and performance bonds outstanding	6.8
Completed Projects
Surety Bonds and Letters of Credit
Payment and performance bonds outstanding	8.6
Insurance Contracts
Surety Bonds and Letters of Credit
Outstanding letters of credit	27.5
Revenue Bonds
Surety Bonds and Letters of Credit
Outstanding letters of credit	$ 9.8

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands	Mar. 13, 2020	Sep. 16, 2019	Aug. 12, 2019	Jun. 27, 2020	Jun. 27, 2020
Business Acquisition
Aggregate acquisitions' net sales				$ 13,800	$ 22,200
Aggregate acquisitions' operating profit				$ 1,300	$ 1,700
Quest Design \| Construction
Business Acquisition
Purchase Price	$ 21,851
Percentage of assets purchased (as a percent)	100.00%
Intangible Assets	$ 18,289
Net Tangible Assets	3,562
Acquired entity, prior year sales	$ 22,000
Pallet USA \| Industrial
Business Acquisition
Purchase Price		$ 12,422
Percentage of assets purchased (as a percent)		100.00%
Intangible Assets		$ 7,464
Net Tangible Assets		4,958
Acquired entity, prior year sales		$ 18,000
Northwest \| Retail
Business Acquisition
Purchase Price			$ 17,809
Percentage of assets purchased (as a percent)			100.00%
Intangible Assets			$ 8,290
Net Tangible Assets			9,519
Acquired entity, prior year sales			$ 14,000

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
SEGMENT REPORTING (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019	Dec. 28, 2019
Segment Reporting
NET SALES	$ 1,242,001	$ 1,239,817	$ 2,274,063	$ 2,254,943
Segment operating profit	92,359	74,237	150,990	122,683
Segment total assets	2,058,608	1,850,659	2,058,608	1,850,659	$ 1,889,477
Intersegment net sales
Segment Reporting
NET SALES	(127,964)	(123,923)	(237,632)	(229,516)
Corporate
Segment Reporting
NET SALES	(149)	(1,012)	(339)	(992)
Segment operating profit	2,989	7,095	12,134	9,157
Segment total assets	480,785		480,785		450,299
Retail
Segment Reporting
NET SALES	609,190	482,090	961,351	815,190
Segment operating profit	45,775	22,430	59,901	33,300
Segment total assets	583,480		583,480		402,221
Retail \| Intersegment net sales
Segment Reporting
NET SALES	34,104	39,232	63,962	68,803
Industrial
Segment Reporting
NET SALES	224,379	291,245	480,922	566,004
Segment operating profit	15,420	20,709	31,800	39,440
Segment total assets	337,027		337,027		377,329
Industrial \| Intersegment net sales
Segment Reporting
NET SALES	9,795	13,596	21,015	24,658
Construction
Segment Reporting
NET SALES	359,170	414,825	740,325	779,962
Segment operating profit	19,542	20,268	34,031	34,857
Segment total assets	512,111		512,111		522,638
Construction \| Intersegment net sales
Segment Reporting
NET SALES	16,353	14,505	31,776	26,336
All Other
Segment Reporting
NET SALES	49,411	52,669	91,804	94,779
Segment operating profit	8,633	3,735	13,124	5,929
Segment total assets	145,205		145,205		$ 136,990
All Other \| Intersegment net sales
Segment Reporting
NET SALES	$ 67,712	$ 56,590	$ 120,879	$ 109,719

SEGMENT REPORTING - Goodwill (D

SEGMENT REPORTING - Goodwill (Details) $ in Thousands	6 Months Ended
SEGMENT REPORTING - Goodwill (Details) $ in Thousands	Jun. 27, 2020USD ($)
Goodwill
Goodwill, Beginning Balance	$ 229,536
2020 Acquisitions	18,289
2020 Purchase Accounting Adjustments	224
Foreign Exchange, Net	(567)
Goodwill, Ending Balance	247,482
Retail
Goodwill
Goodwill, Beginning Balance	58,098
2020 Purchase Accounting Adjustments	202
Goodwill, Ending Balance	58,300
Industrial
Goodwill
Goodwill, Beginning Balance	81,276
2020 Purchase Accounting Adjustments	22
Goodwill, Ending Balance	81,298
Construction
Goodwill
Goodwill, Beginning Balance	82,911
2020 Acquisitions	18,289
Foreign Exchange, Net	(188)
Goodwill, Ending Balance	101,012
All Other
Goodwill
Goodwill, Beginning Balance	7,251
Foreign Exchange, Net	(379)
Goodwill, Ending Balance	$ 6,872

SEGMENT REPORTING - Assets (Det

SEGMENT REPORTING - Assets (Details) - USD ($) $ in Thousands	Jun. 27, 2020	Dec. 28, 2019	Jun. 29, 2019
Segment Reporting
Segment assets	$ 2,058,608	$ 1,889,477	$ 1,850,659
Change in assets (as a percent)	9.00%
Corporate
Segment Reporting
Segment assets	$ 480,785	450,299
Change in assets (as a percent)	6.80%
Retail
Segment Reporting
Segment assets	$ 583,480	402,221
Change in assets (as a percent)	45.10%
Industrial
Segment Reporting
Segment assets	$ 337,027	377,329
Change in assets (as a percent)	(10.70%)
Construction
Segment Reporting
Segment assets	$ 512,111	522,638
Change in assets (as a percent)	(2.00%)
All Other
Segment Reporting
Segment assets	$ 145,205	$ 136,990
Change in assets (as a percent)	6.00%

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		6 Months Ended
INCOME TAXES (Details)	Jun. 27, 2020	Jun. 29, 2019	Jun. 27, 2020	Jun. 29, 2019
INCOME TAXES
Effective income tax rate	25.30%	24.00%	25.10%	24.10%

COMMON STOCK - Common Stock Iss

COMMON STOCK - Common Stock Issuances (Details) - $ / shares	3 Months Ended	6 Months Ended
	Mar. 28, 2020	Jun. 27, 2020	Jun. 29, 2019
Common Stock
Repurchase of common stock	756,397	756,000
Average Share Price
Repurchase of common stock (dollars per share)		$ 38.62
Stock Purchase Plan
Common Stock
Common stock issued		20,000	19,000
Average Share Price
Common stock issued (dollars per share)		$ 40.45	$ 33.63
Stock Gift Program
Common Stock
Common stock issued		2,000	3,000
Average Share Price
Common stock issued (dollars per share)		$ 43.38	$ 31.94
Stock Retainer Plan
Common Stock
Common stock issued		45,000	2,000
Average Share Price
Common stock issued (dollars per share)		$ 24.20	$ 33.74
LTSIP
Common Stock
Common stock issued		271,000	211,000
Average Share Price
Common stock issued (dollars per share)		$ 47.51	$ 30.83
Executive Stock Match Grants
Common Stock
Common stock issued		79,000	109,000
Average Share Price
Common stock issued (dollars per share)		$ 47.60	$ 31.57
Deferred Compensation Plans
Common Stock
Common stock issued		103,000	155,000
Average Share Price
Common stock issued (dollars per share)		$ 53.39	$ 32.58
Stock grant programs
Common Stock
Common stock issued		393,000	309,000
Forfeitures		(4,000)	(16,000)
Average Share Price
Common stock issued (dollars per share)		$ 44.88	$ 31.11

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) $ in Millions	Jul. 14, 2020USD ($)
Subsequent Event \| T&R Lumber Company
Subsequent Event
Purchase Price	$ 17