UFP Industries (UFPI) 10-Q28 Oct 202020 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 26, 2020shares
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 26, 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)	61,186,636
Current Fiscal Year End Date	--12-26
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000912767
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019	Sep. 28, 2019
CURRENT ASSETS:
Cash and cash equivalents	$ 346,154	$ 168,336	$ 64,498
Restricted cash	724	330	729
Investments	20,530	18,527	17,028
Accounts receivable, net	583,079	364,027	474,648
Inventories:
Raw materials	286,418	236,283	239,585
Finished goods	242,316	250,591	239,771
Total inventories	528,734	486,874	479,356
Refundable income taxes		13,272	1,550
Other current assets	32,888	41,706	54,295
TOTAL CURRENT ASSETS	1,512,109	1,093,072	1,092,104
DEFERRED INCOME TAXES	2,070	2,763	2,284
RESTRICTED INVESTMENTS	17,327	16,214	16,082
RIGHT OF USE ASSETS	77,412	80,167	75,436
OTHER ASSETS	24,216	24,884	23,085
GOODWILL	245,925	229,536	232,411
INDEFINITE-LIVED INTANGIBLE ASSETS	7,361	7,354	7,339
OTHER INTANGIBLE ASSETS, NET	58,205	48,313	46,877
PROPERTY, PLANT AND EQUIPMENT:
Property, plant and equipment	935,639	884,963	880,274
Less accumulated depreciation and amortization	(529,644)	(497,789)	(495,267)
PROPERTY, PLANT AND EQUIPMENT, NET	405,995	387,174	385,007
TOTAL ASSETS	2,350,620	1,889,477	1,880,625
CURRENT LIABILITIES:
Accounts payable	231,111	142,479	180,767
Accrued liabilities:
Compensation and benefits	171,472	141,892	127,500
Income taxes	3,024
Other	69,888	51,572	61,463
Current portion of lease liability	15,349	15,283	15,566
Current portion of long-term debt	2,760	2,816	152
TOTAL CURRENT LIABILITIES	493,604	354,042	385,448
LONG-TERM DEBT	311,267	160,867	162,853
LEASE LIABILITY	62,100	64,884	59,870
DEFERRED INCOME TAXES	22,478	22,880	14,897
OTHER LIABILITIES	47,367	29,071	28,454
TOTAL LIABILITIES	936,816	631,744	651,522
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, 61,186,636, 61,408,589 and 61,390,216	61,187	61,409	61,390
Additional paid-in capital	216,002	192,173	189,820
Retained earnings	1,127,375	995,022	969,564
Accumulated other comprehensive income	(6,974)	(4,889)	(5,315)
Total controlling interest shareholders' equity	1,397,590	1,243,715	1,215,459
Noncontrolling interest	16,214	14,018	13,644
TOTAL SHAREHOLDERS' EQUITY	1,413,804	1,257,733	1,229,103
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 2,350,620	$ 1,889,477	$ 1,880,625

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 26, 2020	Dec. 28, 2019	Sep. 28, 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)	61,186,636	61,408,589	61,390,216
Common stock, shares outstanding (in shares)	61,186,636	61,408,589	61,390,216

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME
NET SALES	$ 1,486,227	$ 1,163,026	$ 3,760,290	$ 3,417,969
COST OF GOODS SOLD	1,245,153	975,756	3,147,049	2,889,706
GROSS PROFIT	241,074	187,270	613,241	528,263
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES	134,649	115,958	357,770	334,165
OTHER	(176)	845	(2,120)	948
EARNINGS FROM OPERATIONS	106,601	70,467	257,591	193,150
INTEREST EXPENSE	2,486	1,900	6,291	6,767
INTEREST INCOME	(1,011)	(317)	(1,541)	(1,074)
UNREALIZED GAIN ON INVESTMENTS AND OTHER	(554)	(93)	(82)	(1,611)
NET INTEREST EXPENSE	921	1,490	4,668	4,082
EARNINGS BEFORE INCOME TAXES	105,680	68,977	252,923	189,068
INCOME TAXES	26,819	16,396	63,798	45,340
NET EARNINGS	78,861	52,581	189,125	143,728
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST	(1,657)	(722)	(5,299)	(1,814)
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST	$ 77,204	$ 51,859	$ 183,826	$ 141,914
EARNINGS PER SHARE - BASIC (USD per share)	$ 1.25	$ 0.84	$ 2.98	$ 2.30
EARNINGS PER SHARE - DILUTED (USD per share)	$ 1.25	$ 0.84	$ 2.98	$ 2.30
OTHER COMPREHENSIVE INCOME:
NET EARNINGS	$ 78,861	$ 52,581	$ 189,125	$ 143,728
OTHER COMPREHENSIVE GAIN (LOSS)	1,687	(1,200)	(4,030)	644
COMPREHENSIVE INCOME	80,548	51,381	185,095	144,372
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST	(1,922)	(358)	(3,354)	(1,835)
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST	$ 78,626	$ 51,023	$ 181,741	$ 142,537

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
Net issuance (forfeiture) 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						143,728
Ending balance at Sep. 28, 2019	61,390	189,820	969,564	(5,315)	13,644	1,229,103
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
Net issuance (forfeiture) 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
Increase (Decrease) in Stockholders' Equity
Net earnings			51,859		722	52,581
Foreign currency translation adjustment				(963)	(364)	(1,327)
Unrealized gain (loss) on investment & foreign currency				127		127
Distributions to noncontrolling interest					(734)	(734)
Additional purchases of noncontrolling interest		(5,015)			(1,838)	(6,853)
Cash dividends			1			1
Issuance of shares under employee stock purchase plans	8	262				270
Net issuance (forfeiture) of shares under stock grant programs	1	(73)				(72)
Issuance of shares under deferred compensation plans	14	(14)
Expense associated with share-based compensation arrangements		857				857
Accrued expense under deferred compensation plans		1,020				1,020
Ending balance at Sep. 28, 2019	61,390	189,820	969,564	(5,315)	13,644	1,229,103
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
Net issuance (forfeiture) 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						189,125
Ending balance at Sep. 26, 2020	61,187	216,002	1,127,375	(6,974)	16,214	1,413,804
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
Net issuance (forfeiture) 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
Increase (Decrease) in Stockholders' Equity
Net earnings			77,204		1,657	78,861
Foreign currency translation adjustment				1,319	265	1,584
Unrealized loss on debt securities				103		103
Distributions to noncontrolling interest					(634)	(634)
Cash dividends			(7,646)			(7,646)
Issuance of shares under employee stock purchase plans	7	338				345
Net issuance (forfeiture) of shares under stock grant programs	(1)	(56)				(57)
Issuance of shares under deferred compensation plans	12	(12)
Expense associated with share-based compensation arrangements		826				826
Accrued expense under deferred compensation plans		1,097				1,097
Ending balance at Sep. 26, 2020	$ 61,187	$ 216,002	$ 1,127,375	$ (6,974)	$ 16,214	$ 1,413,804

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 26, 2020	Jun. 27, 2020	Mar. 28, 2020	Sep. 28, 2019	Jun. 29, 2019	Mar. 30, 2019
Increase (Decrease) in Stockholders' Equity
Cash dividends per share (USD per share)	$ 0.125	$ 0.125	$ 0.125	$ 0.200	$ 0.200
Issuance of shares under employee stock plans (in shares)	7,511	9,714	10,549	7,916	8,694	10,259
Issuance of shares under stock grant programs (in shares)	1,382	42,880	350,124	1,070	10,819	320,069
Issuance of shares under deferred compensation plans (in shares)	11,326	14,106	89,616	14,550	16,433	138,295
Repurchase of shares (in shares)			756,397

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 189,125	$ 143,728
Adjustments to reconcile net earnings to net cash from operating activities:
Depreciation	47,226	44,652
Amortization of intangibles	5,863	4,690
Expense associated with share-based and grant compensation arrangements	3,152	3,105
Deferred income taxes (credit)	110	(367)
Unrealized loss (gain) on investments	(81)	(1,611)
Net gain on disposition of assets and impairment of assets	(662)	830
Changes in:
Accounts receivable	(211,238)	(127,841)
Inventories	(39,167)	80,178
Accounts payable and cash overdraft	85,354	14,293
Accrued liabilities and other	105,401	36,423
NET CASH FROM OPERATING ACTIVITIES	185,083	198,080
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(67,024)	(66,338)
Proceeds from sale of property, plant and equipment	2,588	1,180
Acquisitions and purchases of non-controlling interest, net of cash received	(34,820)	(38,710)
Purchases of investments	(24,266)	(6,475)
Proceeds from sale of investments	22,281	4,159
Other	314	199
NET CASH USED IN INVESTING ACTIVITIES	(100,927)	(105,985)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under revolving credit facilities	6,862	421,464
Repayments under revolving credit facilities	(6,498)	(460,537)
Contingent consideration payment and other	(3,087)	(3,099)
Issuance of long-term debt	150,000
Proceeds from issuance of common stock	1,042	812
Dividends paid to shareholders	(23,020)	(12,270)
Distributions to noncontrolling interest	(932)	(1,634)
Repurchase of common stock	(29,212)
Other	23	41
NET CASH FROM (USED IN) FINANCING ACTIVITIES	95,178	(55,223)
Effect of exchange rate changes on cash	(1,122)	157
NET CHANGE IN CASH AND CASH EQUIVALENTS	178,212	37,029
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR	168,666	28,198
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	$ 346,878	$ 65,227

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL - USD ($) $ in Thousands	9 Months Ended
	Sep. 26, 2020	Sep. 28, 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	346,154	64,498
Restricted cash, end of period	724	729
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD	346,878	65,227
SUPPLEMENTAL INFORMATION:
Interest paid	4,112	5,287
Income taxes paid	47,301	33,106
NON-CASH FINANCING ACTIVITIES:
Common stock issued under deferred compensation plans	$ 6,195	$ 5,620

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
BASIS OF PRESENTATION	Sep. 26, 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, our 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 September 28, 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 . 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	9 Months Ended
FAIR VALUE	Sep. 26, 2020
FAIR VALUE
FAIR VALUE	B. FAIR VALUE We apply the provisions of ASC 820, Fair Value Measurements and Disclosures September 26, 2020 September 28, 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 $ 64 $ 3,133 $ — $ 3,197 $ 56,781 $ 843 $ — $ 57,624 Fixed income funds 248 16,522 — 16,770 733 14,566 — 15,299 Equity securities 10,524 — — 10,524 8,840 — — 8,840 Alternative investments — — 1,926 1,926 — — 1,895 1,895 Mutual funds: Domestic stock funds 6,826 — — 6,826 2,630 — — 2,630 International stock funds 1,243 — — 1,243 2,054 — — 2,054 Target funds 260 — — 260 268 — — 268 Bond funds 208 — — 208 825 — — 825 Alternative funds 433 — — 433 1,531 — — 1,531 Total mutual funds 8,970 — — 8,970 7,308 — — 7,308 Total $ 19,806 $ 19,655 $ 1,926 $ 41,387 $ 73,662 $ 15,409 $ 1,895 $ 90,966 Assets at fair value $ 19,806 $ 19,655 $ 1,926 $ 41,387 $ 73,662 $ 15,409 $ 1,895 $ 90,966 From the assets measured at fair value as of September 26, 2020, listed in the table above, $20.5 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 $16.8 million of fixed income funds and $3.2 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 $37.3 million as of September 26, 2020, which has been included in the aforementioned table of total investments. This portfolio consists 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): September 26, 2020 September 28, 2019 Unrealized Unrealized Cost Gain/(Loss) Fair Value Cost Gain/(Loss) Fair Value Fixed Income $ 15,750 $ 1,020 $ 16,770 $ 14,969 $ 330 $ 15,299 Equity 9,121 1,403 10,524 7,584 1,256 8,840 Mutual Funds 7,228 852 8,080 6,391 (98) 6,293 Alternative Investments 1,881 45 1,926 1,790 105 1,895 Total $ 33,980 $ 3,320 $ 37,300 $ 30,734 $ 1,593 $ 32,327 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 mutual fund investments consist of domestic and international stock. Our alternative investments consist of the private real estate income trust which is valued as a Level 3 asset. The net unrealized gain was $3.3 million. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of September 26, 2020 and September 28, 2019.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
REVENUE RECOGNITION	Sep. 26, 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 Nine Months Ended (in thousands) September 26, September 28, September 26, September 28, Market Classification 2020 2019 % Change 2020 2019 % Change FOB Shipping Point Revenue $ 1,490,050 $ 1,140,853 30.6% $ 3,749,122 $ 3,358,520 11.6% Construction Contract Revenue 32,007 43,177 -25.9% 97,150 121,622 -20.1% Total Gross Sales 1,522,057 1,184,030 28.5% 3,846,272 3,480,142 10.5% Sales Allowances (35,830) (21,004) 70.6% (85,982) (62,173) 38.3% Total Net Sales $ 1,486,227 $ 1,163,026 27.8% $ 3,760,290 $ 3,417,969 10.0% 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): September 26, December 28, September 28, 2020 2019 2019 Cost and Earnings in Excess of Billings $ 4,130 $ 4,690 $ 6,815 Billings in Excess of Cost and Earnings 11,264 6,622 6,666

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
EARNINGS PER SHARE	Sep. 26, 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 Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Numerator: Net earnings attributable to controlling interest $ 77,204 $ 51,859 $ 183,826 $ 141,914 Adjustment for earnings allocated to non-vested restricted common stock (2,195) (1,299) (5,110) (3,547) Net earnings for calculating EPS $ 75,009 $ 50,560 $ 178,716 $ 138,367 Denominator: Weighted average shares outstanding 61,548 61,717 61,642 61,609 Adjustment for non-vested restricted common stock (1,750) (1,546) (1,713) (1,540) Shares for calculating basic EPS 59,798 60,171 59,929 60,069 Effect of dilutive restricted common stock 20 24 19 22 Shares for calculating diluted EPS 59,818 60,195 59,948 60,091 Net earnings per share: Basic $ 1.25 $ 0.84 $ 2.98 $ 2.30 Diluted $ 1.25 $ 0.84 $ 2.98 $ 2.30

COMMITMENTS, CONTINGENCIES, AND

COMMITMENTS, CONTINGENCIES, AND GUARANTEES	9 Months Ended
COMMITMENTS, CONTINGENCIES, AND GUARANTEES	Sep. 26, 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 September 26, 2020 and $2.0 million on September 28, 2019, respectively, representing the estimated costs to complete future remediation efforts. These amounts have not been reduced by an insurance receivable. In addition, on September 26, 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 September 26, 2020, we had outstanding purchase commitments on commenced capital projects of approximately $21.3 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 September 26, 2020, we had approximately $7.0 million outstanding payment and performance bonds for open projects. We had approximately $7.6 million in payment and performance bonds outstanding for completed projects which are still under warranty. On September 26, 2020, we had outstanding letters of credit totaling $43.8 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 September 26, 2020, we have irrevocable letters of credit outstanding totaling approximately $33.8 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 UFP Industries, Inc. in certain debt agreements, including the Series 2012, 2018 and 2020 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 third quarter of 2020 which would require us to recognize a liability on our balance sheet.

BUSINESS COMBINATIONS

BUSINESS COMBINATIONS	9 Months Ended
BUSINESS COMBINATIONS	Sep. 26, 2020
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS	F. BUSINESS COMBINATIONS We completed the following acquisitions in 2020 and since the end of September 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 July 14, 2020 $19,173 $ 13,098 $ 6,075 Industrial T&R Lumber Company ("T&R") A manufacturer and distributor of 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 based in Rancho Cucamonga, California. T&R had annual sales of approximately $31 million. The acquisition of T&R will allow us to leverage their expertise using our national manufacturing capacity to grow our agricultural product offerings and customer base across the country. March 13, 2020 $21,787 $ 19,098 $ 2,689 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 expands our architectural millwork capabilities and expertise in our commercial construction business unit, and will allow us to use our national manufacturing capacity to grow and diversify our sales to this end market The intangible assets for the T&R and Quest acquisitions have not been finalized and allocated to their respective identifiable asset and goodwill accounts. In aggregate, acquisitions completed since the end of September 2019 and not consolidated with other operations contributed approximately $10.8 million in net sales and $0.2 million in operating profits during the third quarter of 2020 and $17.8 million in net sales and $1.5 million in operating profits in the first nine months of 2020.

SEGMENT REPORTING

SEGMENT REPORTING	9 Months Ended
SEGMENT REPORTING	Sep. 26, 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. Three Months Ended September 26, 2020 (in thousands) Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 700,522 $ 282,124 $ 447,103 $ 56,700 $ (222) $ 1,486,227 Intersegment net sales 45,416 11,773 17,909 76,029 (151,127) — Segment operating profit 62,181 22,037 16,513 7,449 (1,579) 106,601 Three Months Ended September 28, 2019 (in thousands) Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 397,140 $ 271,667 $ 445,505 $ 48,066 $ 648 $ 1,163,026 Intersegment net sales 32,400 9,748 16,057 45,918 (104,123) — Segment operating profit 14,297 20,768 21,406 3,561 10,435 70,467 Nine Months Ended September 26, 2020 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 1,661,873 $ 763,046 $ 1,187,429 $ 148,503 $ (561) $ 3,760,290 Intersegment net sales 109,378 32,788 49,685 196,908 (388,759) — Segment operating profit 122,082 53,837 50,544 20,573 10,555 257,591 Nine Months Ended September 28, 2019 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 1,212,330 $ 837,671 $ 1,225,467 $ 142,845 $ (344) $ 3,417,969 Intersegment net sales 101,203 34,406 42,393 155,637 (333,639) — Segment operating profit 47,597 60,208 56,263 9,490 19,592 193,150 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 September 26, 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 — 6,549 9,953 — — 16,502 2020 Purchase Accounting Adjustments 202 2 — — — 204 Foreign Exchange, Net — — 229 (546) — (317) Balance as of September 26, 2020 $ 58,300 $ 87,827 $ 93,093 $ 6,705 $ — $ 245,925 The following table presents total assets by segment as of September 26, 2020, and December 28, 2019. Total Assets by Segment (in thousands) September 26, December 28, Segment Classification 2020 2019 % Change Retail $ 631,238 $ 402,221 56.9 % Industrial 389,806 377,329 3.3 Construction 525,596 522,638 0.6 All Other 161,945 136,990 18.2 Corporate 642,035 450,299 42.6 Total Assets $ 2,350,620 $ 1,889,477 24.4 % 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	9 Months Ended
INCOME TAXES	Sep. 26, 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 25.4% in the third quarter of 2020 compared to 23.8% for same period in 2019 and was 25.2% in the first nine months of 2020 compared to 24.0% for the same period in 2019.

COMMON STOCK

COMMON STOCK	9 Months Ended
COMMON STOCK	Sep. 26, 2020
COMMON STOCK
COMMON STOCK	I. COMMON STOCK Below is a summary of common stock issuances for the first nine months of 2020 and 2019 (in thousands, except average share price): September 26, 2020 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 28 $ 44.14 Shares issued under the employee stock gift program 2 45.93 Shares issued under the director retainer stock program 46 24.80 Shares issued under the long-term stock incentive plan 271 47.51 Shares issued under the executive stock match grants 79 47.60 Forfeitures (7) Total shares issued under stock grant programs 391 $ 44.92 Shares issued under the deferred compensation plans 115 $ 53.85 During the first nine months of 2020, we repurchased approximately 756,000 shares of our common stock at an average share price of $38.62. September 28, 2019 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 27 $ 35.52 Shares issued under the employee stock gift program 3 33.91 Shares issued under the director retainer stock program 4 35.44 Shares issued under the long-term stock incentive plan 211 30.83 Shares issued under the executive stock match grants 109 31.57 Forfeitures (17) Total shares issued under stock grant programs 310 $ 31.17 Shares issued under the deferred compensation plans 169 $ 33.20 During the first nine months of 2019, we did not repurchase any of our common stock.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 26, 2020
SUBSEQUENT EVENTS
Subsequent Events	J. SUBSEQUENT EVENTS On September 30, 2020, we entered into a joint venture with Atlante S.p.A. to create Enwrap Logistic & Packaging S.r.l. (Enwrap) and acquired a 50% ownership interest in Enwrap for $5.3 million. Enwrap is headquartered in Milan, Italy and is an industrial packaging business, which provides high-value, mixed material industrial packaging and logistics services through 14 facilities in Italy. On October 1, 2020, we acquired the equity of Fire Retardant Chemical Technologies, LLC (FRCT), for $5.9 million. Founded in 2014 and based in Matthews, North Carolina, FRCT’s business includes a research and development laboratory specializing in developing and testing a wide range of high-performance chemicals, including fire retardants and water repellants.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	9 Months Ended
BASIS OF PRESENTATION (Policies)	Sep. 26, 2020
BASIS OF PRESENTATION
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)	9 Months Ended
FAIR VALUE (Tables)	Sep. 26, 2020
FAIR VALUE
Assets measured at fair value	September 26, 2020 September 28, 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 $ 64 $ 3,133 $ — $ 3,197 $ 56,781 $ 843 $ — $ 57,624 Fixed income funds 248 16,522 — 16,770 733 14,566 — 15,299 Equity securities 10,524 — — 10,524 8,840 — — 8,840 Alternative investments — — 1,926 1,926 — — 1,895 1,895 Mutual funds: Domestic stock funds 6,826 — — 6,826 2,630 — — 2,630 International stock funds 1,243 — — 1,243 2,054 — — 2,054 Target funds 260 — — 260 268 — — 268 Bond funds 208 — — 208 825 — — 825 Alternative funds 433 — — 433 1,531 — — 1,531 Total mutual funds 8,970 — — 8,970 7,308 — — 7,308 Total $ 19,806 $ 19,655 $ 1,926 $ 41,387 $ 73,662 $ 15,409 $ 1,895 $ 90,966 Assets at fair value $ 19,806 $ 19,655 $ 1,926 $ 41,387 $ 73,662 $ 15,409 $ 1,895 $ 90,966
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): September 26, 2020 September 28, 2019 Unrealized Unrealized Cost Gain/(Loss) Fair Value Cost Gain/(Loss) Fair Value Fixed Income $ 15,750 $ 1,020 $ 16,770 $ 14,969 $ 330 $ 15,299 Equity 9,121 1,403 10,524 7,584 1,256 8,840 Mutual Funds 7,228 852 8,080 6,391 (98) 6,293 Alternative Investments 1,881 45 1,926 1,790 105 1,895 Total $ 33,980 $ 3,320 $ 37,300 $ 30,734 $ 1,593 $ 32,327

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	9 Months Ended
REVENUE RECOGNITION (Tables)	Sep. 26, 2020
REVENUE RECOGNITION
Schedule of Disaggregation of revenue	Three Months Ended Nine Months Ended (in thousands) September 26, September 28, September 26, September 28, Market Classification 2020 2019 % Change 2020 2019 % Change FOB Shipping Point Revenue $ 1,490,050 $ 1,140,853 30.6% $ 3,749,122 $ 3,358,520 11.6% Construction Contract Revenue 32,007 43,177 -25.9% 97,150 121,622 -20.1% Total Gross Sales 1,522,057 1,184,030 28.5% 3,846,272 3,480,142 10.5% Sales Allowances (35,830) (21,004) 70.6% (85,982) (62,173) 38.3% Total Net Sales $ 1,486,227 $ 1,163,026 27.8% $ 3,760,290 $ 3,417,969 10.0%
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): September 26, December 28, September 28, 2020 2019 2019 Cost and Earnings in Excess of Billings $ 4,130 $ 4,690 $ 6,815 Billings in Excess of Cost and Earnings 11,264 6,622 6,666

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
EARNINGS PER SHARE (Tables)	Sep. 26, 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 Nine Months Ended September 26, September 28, September 26, September 28, 2020 2019 2020 2019 Numerator: Net earnings attributable to controlling interest $ 77,204 $ 51,859 $ 183,826 $ 141,914 Adjustment for earnings allocated to non-vested restricted common stock (2,195) (1,299) (5,110) (3,547) Net earnings for calculating EPS $ 75,009 $ 50,560 $ 178,716 $ 138,367 Denominator: Weighted average shares outstanding 61,548 61,717 61,642 61,609 Adjustment for non-vested restricted common stock (1,750) (1,546) (1,713) (1,540) Shares for calculating basic EPS 59,798 60,171 59,929 60,069 Effect of dilutive restricted common stock 20 24 19 22 Shares for calculating diluted EPS 59,818 60,195 59,948 60,091 Net earnings per share: Basic $ 1.25 $ 0.84 $ 2.98 $ 2.30 Diluted $ 1.25 $ 0.84 $ 2.98 $ 2.30

BUSINESS COMBINATIONS (Tables)

BUSINESS COMBINATIONS (Tables)	9 Months Ended
BUSINESS COMBINATIONS (Tables)	Sep. 26, 2020
BUSINESS COMBINATIONS
Business Acquisitions Accounted for Using Purchase Method	Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment July 14, 2020 $19,173 $ 13,098 $ 6,075 Industrial T&R Lumber Company ("T&R") A manufacturer and distributor of 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 based in Rancho Cucamonga, California. T&R had annual sales of approximately $31 million. The acquisition of T&R will allow us to leverage their expertise using our national manufacturing capacity to grow our agricultural product offerings and customer base across the country. March 13, 2020 $21,787 $ 19,098 $ 2,689 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 expands our architectural millwork capabilities and expertise in our commercial construction business unit, and will allow us to use our national manufacturing capacity to grow and diversify our sales to this end market

SEGMENT REPORTING (Tables)

SEGMENT REPORTING (Tables)	9 Months Ended
SEGMENT REPORTING (Tables)	Sep. 26, 2020
SEGMENT REPORTING
Segment Reporting	Three Months Ended September 26, 2020 (in thousands) Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 700,522 $ 282,124 $ 447,103 $ 56,700 $ (222) $ 1,486,227 Intersegment net sales 45,416 11,773 17,909 76,029 (151,127) — Segment operating profit 62,181 22,037 16,513 7,449 (1,579) 106,601 Three Months Ended September 28, 2019 (in thousands) Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 397,140 $ 271,667 $ 445,505 $ 48,066 $ 648 $ 1,163,026 Intersegment net sales 32,400 9,748 16,057 45,918 (104,123) — Segment operating profit 14,297 20,768 21,406 3,561 10,435 70,467 Nine Months Ended September 26, 2020 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 1,661,873 $ 763,046 $ 1,187,429 $ 148,503 $ (561) $ 3,760,290 Intersegment net sales 109,378 32,788 49,685 196,908 (388,759) — Segment operating profit 122,082 53,837 50,544 20,573 10,555 257,591 Nine Months Ended September 28, 2019 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 1,212,330 $ 837,671 $ 1,225,467 $ 142,845 $ (344) $ 3,417,969 Intersegment net sales 101,203 34,406 42,393 155,637 (333,639) — Segment operating profit 47,597 60,208 56,263 9,490 19,592 193,150
Schedule of Goodwill by Segment	The following table presents goodwill by segment as of September 26, 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 — 6,549 9,953 — — 16,502 2020 Purchase Accounting Adjustments 202 2 — — — 204 Foreign Exchange, Net — — 229 (546) — (317) Balance as of September 26, 2020 $ 58,300 $ 87,827 $ 93,093 $ 6,705 $ — $ 245,925
Schedule of assets by segment	Total Assets by Segment (in thousands) September 26, December 28, Segment Classification 2020 2019 % Change Retail $ 631,238 $ 402,221 56.9 % Industrial 389,806 377,329 3.3 Construction 525,596 522,638 0.6 All Other 161,945 136,990 18.2 Corporate 642,035 450,299 42.6 Total Assets $ 2,350,620 $ 1,889,477 24.4 %

COMMON STOCK (Tables)

COMMON STOCK (Tables)	9 Months Ended
COMMON STOCK (Tables)	Sep. 26, 2020
COMMON STOCK
Schedule of common stock issuances	Below is a summary of common stock issuances for the first nine months of 2020 and 2019 (in thousands, except average share price): September 26, 2020 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 28 $ 44.14 Shares issued under the employee stock gift program 2 45.93 Shares issued under the director retainer stock program 46 24.80 Shares issued under the long-term stock incentive plan 271 47.51 Shares issued under the executive stock match grants 79 47.60 Forfeitures (7) Total shares issued under stock grant programs 391 $ 44.92 Shares issued under the deferred compensation plans 115 $ 53.85 September 28, 2019 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 27 $ 35.52 Shares issued under the employee stock gift program 3 33.91 Shares issued under the director retainer stock program 4 35.44 Shares issued under the long-term stock incentive plan 211 30.83 Shares issued under the executive stock match grants 109 31.57 Forfeitures (17) Total shares issued under stock grant programs 310 $ 31.17 Shares issued under the deferred compensation plans 169 $ 33.20

FAIR VALUE - Asset Measured at

FAIR VALUE - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 26, 2020	Sep. 28, 2019
Money market funds \| Restricted Investments
Fair Value
Investments at fair value	$ 3,200
Fixed Income \| Restricted Investments
Fair Value
Investments at fair value	16,800
Mutual funds, equity and alternative investments \| Investments
Fair Value
Investments at fair value	20,500
Money market and mutual funds \| Other Assets
Fair Value
Investments at fair value	900
Ardellis Insurance Ltd.
Fair Value
Total Fair Value	37,300	$ 32,327
Estimate of Fair Value Measurement \| Recurring
Fair Value
Investments at fair value	41,387	90,966
Assets at fair value	41,387	90,966
Estimate of Fair Value Measurement \| Recurring \| Money market funds
Fair Value
Investments at fair value	3,197	57,624
Estimate of Fair Value Measurement \| Recurring \| Fixed Income
Fair Value
Investments at fair value	16,770	15,299
Estimate of Fair Value Measurement \| Recurring \| Equity
Fair Value
Investments at fair value	10,524	8,840
Estimate of Fair Value Measurement \| Recurring \| Alternative Investments
Fair Value
Investments at fair value	1,926	1,895
Estimate of Fair Value Measurement \| Recurring \| Mutual Fund
Fair Value
Investments at fair value	8,970	7,308
Estimate of Fair Value Measurement \| Recurring \| Domestic stock funds
Fair Value
Investments at fair value	6,826	2,630
Estimate of Fair Value Measurement \| Recurring \| International stock funds
Fair Value
Investments at fair value	1,243	2,054
Estimate of Fair Value Measurement \| Recurring \| Target funds
Fair Value
Investments at fair value	260	268
Estimate of Fair Value Measurement \| Recurring \| Bond funds
Fair Value
Investments at fair value	208	825
Estimate of Fair Value Measurement \| Recurring \| Alternative funds
Fair Value
Investments at fair value	433	1,531
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1)
Fair Value
Investments at fair value	19,806	73,662
Assets at fair value	19,806	73,662
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Money market funds
Fair Value
Investments at fair value	64	56,781
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Fixed Income
Fair Value
Investments at fair value	248	733
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Equity
Fair Value
Investments at fair value	10,524	8,840
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Mutual Fund
Fair Value
Investments at fair value	8,970	7,308
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Domestic stock funds
Fair Value
Investments at fair value	6,826	2,630
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| International stock funds
Fair Value
Investments at fair value	1,243	2,054
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Target funds
Fair Value
Investments at fair value	260	268
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Bond funds
Fair Value
Investments at fair value	208	825
Estimate of Fair Value Measurement \| Recurring \| Quoted Prices in Active Markets (Level 1) \| Alternative funds
Fair Value
Investments at fair value	433	1,531
Estimate of Fair Value Measurement \| Recurring \| Prices with Other Observable Inputs (Level 2)
Fair Value
Investments at fair value	19,655	15,409
Assets at fair value	19,655	15,409
Estimate of Fair Value Measurement \| Recurring \| Prices with Other Observable Inputs (Level 2) \| Money market funds
Fair Value
Investments at fair value	3,133	843
Estimate of Fair Value Measurement \| Recurring \| Prices with Other Observable Inputs (Level 2) \| Fixed Income
Fair Value
Investments at fair value	16,522	14,566
Estimate of Fair Value Measurement \| Recurring \| Prices with Unobservable Inputs (Level 3)
Fair Value
Investments at fair value	1,926	1,895
Assets at fair value	1,926	1,895
Estimate of Fair Value Measurement \| Recurring \| Prices with Unobservable Inputs (Level 3) \| Alternative Investments
Fair Value
Investments at fair value	$ 1,926	$ 1,895

FAIR VALUE - Available for Sale

FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. - USD ($) $ in Thousands	Sep. 26, 2020	Sep. 28, 2019
Available-for-sale securities
Total Securities Cost	$ 33,980	$ 30,734
Unrealized Gain (Loss)	3,320	1,593
Total Fair Value	37,300	32,327
Fixed Income
Available-for-sale securities
Debt Securities Cost	15,750	14,969
Debt Securities Unrealized Gain/(Loss)	1,020	330
Debt Securities Fair Value	16,770	15,299
Equity
Available-for-sale securities
Equity Securities Cost	9,121	7,584
Equity Securities Unrealized Gain/(Loss)	1,403	1,256
Equity Securities Fair Value	10,524	8,840
Mutual Fund
Available-for-sale securities
Debt Securities Cost	7,228	6,391
Debt Securities Unrealized Gain/(Loss)		(98)
Debt Securities Unrealized Gain/(Loss)	852
Debt Securities Fair Value	8,080	6,293
Alternative Investments
Available-for-sale securities
Debt Securities Cost	1,881	1,790
Debt Securities Unrealized Gain/(Loss)	45	105
Debt Securities Fair Value	$ 1,926	$ 1,895

REVENUE RECOGNITION - Disaggreg

REVENUE RECOGNITION - Disaggregated revenue (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020USD ($)item	Sep. 28, 2019USD ($)	Sep. 26, 2020USD ($)item	Sep. 28, 2019USD ($)	Dec. 28, 2019USD ($)
Revenue Recognition
Retained earnings	$ 1,127,375	$ 969,564	$ 1,127,375	$ 969,564	$ 995,022
Number of markets in which the entity operates (in markets) \| item	3		3
Total Gross Sales	$ 1,522,057	1,184,030	$ 3,846,272	3,480,142
Sales Allowances	(35,830)	(21,004)	(85,982)	(62,173)
Total Net Sales	$ 1,486,227	1,163,026	$ 3,760,290	3,417,969
Change %	28.50%		10.50%
Change % in sales allowances	70.60%		38.30%
Change % in net sales	27.80%		10.00%
FOB Shipping Point Revenue
Revenue Recognition
Total Gross Sales	$ 1,490,050	1,140,853	$ 3,749,122	3,358,520
Change %	30.60%		11.60%
Construction Contract Revenue
Revenue Recognition
Total Gross Sales	$ 32,007	$ 43,177	$ 97,150	$ 121,622
Change %	(25.90%)		(20.10%)
Minimum \| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-27 \| 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]: 2020-09-27 \| 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	Sep. 26, 2020	Dec. 28, 2019	Sep. 28, 2019
REVENUE RECOGNITION
Cost and Earnings in Excess of Billings	$ 4,130	$ 4,690	$ 6,815
Billings in Excess of Cost and Earnings	$ 11,264	$ 6,622	$ 6,666

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
Numerator:
Net earnings attributable to controlling interest	$ 77,204	$ 51,859	$ 183,826	$ 141,914
Adjustment for earnings allocated to non-vested restricted common stock	(2,195)	(1,299)	(5,110)	(3,547)
Net earnings for calculating EPS	$ 75,009	$ 50,560	$ 178,716	$ 138,367
Denominator:
Weighted average shares outstanding (in shares)	61,548	61,717	61,642	61,609
Adjustment for non-vested restricted common stock (in shares)	(1,750)	(1,546)	(1,713)	(1,540)
Shares for calculating basic EPS (in shares)	59,798	60,171	59,929	60,069
Effect of dilutive restricted common stock (in shares)	20	24	19	22
Shares for calculating diluted EPS (in shares)	59,818	60,195	59,948	60,091
Net earnings per share
Basic (USD per share)	$ 1.25	$ 0.84	$ 2.98	$ 2.30
Diluted (USD per share)	$ 1.25	$ 0.84	$ 2.98	$ 2.30

COMMITMENTS, CONTINGENCIES, A_2

COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 26, 2020	Sep. 28, 2019
Long-term commitment
Outstanding purchase commitments on capital projects	$ 21.3
Surety Bonds and Letters of Credit
Outstanding letters of credit	$ 43.8
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	7
Completed Projects
Surety Bonds and Letters of Credit
Payment and performance bonds outstanding	7.6
Insurance Contracts
Surety Bonds and Letters of Credit
Outstanding letters of credit	33.8
Revenue Bonds
Surety Bonds and Letters of Credit
Outstanding letters of credit	$ 9.8

BUSINESS COMBINATIONS (Details)

BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands	Jul. 14, 2020	Mar. 13, 2020	Sep. 26, 2020	Sep. 26, 2020
Business Acquisition
Aggregate acquisitions' net sales			$ 10,800	$ 17,800
Aggregate acquisitions' operating profit			$ 200	$ 1,500
T&R Lumber Company \| Industrial
Business Acquisition
Purchase Price	$ 19,173
Percentage of assets purchased (as a percent)	100.00%
Intangible Assets	$ 13,098
Net Tangible Assets	6,075
Acquired entity, prior year sales	$ 31,000
Quest Design \| Construction
Business Acquisition
Purchase Price		$ 21,787
Percentage of assets purchased (as a percent)		100.00%
Intangible Assets		$ 19,098
Net Tangible Assets		2,689
Acquired entity, prior year sales		$ 22,000

SEGMENT REPORTING (Details)

SEGMENT REPORTING (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
SEGMENT REPORTING (Details) - USD ($) $ in Thousands	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019	Dec. 28, 2019
Segment Reporting
Net sales	$ 1,486,227	$ 1,163,026	$ 3,760,290	$ 3,417,969
Segment operating profit	106,601	70,467	257,591	193,150
Segment total assets	2,350,620	1,880,625	2,350,620	1,880,625	$ 1,889,477
Intersegment net sales
Segment Reporting
Net sales	(151,127)	(104,123)	(388,759)	(333,639)
Corporate
Segment Reporting
Net sales	(222)	648	(561)	(344)
Segment operating profit	(1,579)	10,435	10,555	19,592
Segment total assets	642,035		642,035		450,299
Retail
Segment Reporting
Net sales	700,522	397,140	1,661,873	1,212,330
Segment operating profit	62,181	14,297	122,082	47,597
Segment total assets	631,238		631,238		402,221
Retail \| Intersegment net sales
Segment Reporting
Net sales	45,416	32,400	109,378	101,203
Industrial
Segment Reporting
Net sales	282,124	271,667	763,046	837,671
Segment operating profit	22,037	20,768	53,837	60,208
Segment total assets	389,806		389,806		377,329
Industrial \| Intersegment net sales
Segment Reporting
Net sales	11,773	9,748	32,788	34,406
Construction
Segment Reporting
Net sales	447,103	445,505	1,187,429	1,225,467
Segment operating profit	16,513	21,406	50,544	56,263
Segment total assets	525,596		525,596		522,638
Construction \| Intersegment net sales
Segment Reporting
Net sales	17,909	16,057	49,685	42,393
All Other
Segment Reporting
Net sales	56,700	48,066	148,503	142,845
Segment operating profit	7,449	3,561	20,573	9,490
Segment total assets	161,945		161,945		$ 136,990
All Other \| Intersegment net sales
Segment Reporting
Net sales	$ 76,029	$ 45,918	$ 196,908	$ 155,637

SEGMENT REPORTING - Goodwill (D

SEGMENT REPORTING - Goodwill (Details) $ in Thousands	9 Months Ended
SEGMENT REPORTING - Goodwill (Details) $ in Thousands	Sep. 26, 2020USD ($)
Goodwill
Goodwill, Beginning Balance	$ 229,536
2020 Acquisitions	16,502
2020 Purchase Accounting Adjustments	204
Foreign Exchange, Net	(317)
Goodwill, Ending Balance	245,925
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 Acquisitions	6,549
2020 Purchase Accounting Adjustments	2
Goodwill, Ending Balance	87,827
Construction
Goodwill
Goodwill, Beginning Balance	82,911
2020 Acquisitions	9,953
Foreign Exchange, Net	229
Goodwill, Ending Balance	93,093
All Other
Goodwill
Goodwill, Beginning Balance	7,251
Foreign Exchange, Net	(546)
Goodwill, Ending Balance	$ 6,705

SEGMENT REPORTING - Assets (Det

SEGMENT REPORTING - Assets (Details) - USD ($) $ in Thousands	Sep. 26, 2020	Dec. 28, 2019	Sep. 28, 2019
Segment Reporting
Segment assets	$ 2,350,620	$ 1,889,477	$ 1,880,625
Change in assets (as a percent)	24.40%
Corporate
Segment Reporting
Segment assets	$ 642,035	450,299
Change in assets (as a percent)	42.60%
Retail
Segment Reporting
Segment assets	$ 631,238	402,221
Change in assets (as a percent)	56.90%
Industrial
Segment Reporting
Segment assets	$ 389,806	377,329
Change in assets (as a percent)	3.30%
Construction
Segment Reporting
Segment assets	$ 525,596	522,638
Change in assets (as a percent)	0.60%
All Other
Segment Reporting
Segment assets	$ 161,945	$ 136,990
Change in assets (as a percent)	18.20%

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
INCOME TAXES (Details)	Sep. 26, 2020	Sep. 28, 2019	Sep. 26, 2020	Sep. 28, 2019
INCOME TAXES
Effective income tax rate	25.40%	23.80%	25.20%	24.00%

COMMON STOCK - Common Stock Iss

COMMON STOCK - Common Stock Issuances (Details) - $ / shares	3 Months Ended	9 Months Ended
	Mar. 28, 2020	Sep. 26, 2020	Sep. 28, 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		28,000	27,000
Average Share Price
Common stock issued (dollars per share)		$ 44.14	$ 35.52
Stock Gift Program
Common Stock
Common stock issued		2,000	3,000
Average Share Price
Common stock issued (dollars per share)		$ 45.93	$ 33.91
Stock Retainer Plan
Common Stock
Common stock issued		46,000	4,000
Average Share Price
Common stock issued (dollars per share)		$ 24.80	$ 35.44
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		115,000	169,000
Average Share Price
Common stock issued (dollars per share)		$ 53.85	$ 33.20
Stock grant programs
Common Stock
Common stock issued		391,000	310,000
Forfeitures		(7,000)	(17,000)
Average Share Price
Common stock issued (dollars per share)		$ 44.92	$ 31.17

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event $ in Millions	Oct. 01, 2020USD ($)	Sep. 30, 2020USD ($)facility
FRCT
Subsequent Event
Purchase Price	$ 5.9
Enwrap
Subsequent Event
Amount invested in joint venture		$ 5.3
Number of facilities \| facility		14
Enwrap
Subsequent Event
Ownership interest		50.00%