SEGMENT REPORTING | G. SEGMENT REPORTING We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of UFP Retail Solutions, UFP Industrial and UFP Construction and align with the end markets we serve. This segment structure allows for a specialized and consistent sales approach among Company operations, efficient use of resources and capital, and quicker introduction of new products and services. We manage the operations of our 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. In the case of locations which serve multiple segments, results are allocated and accounted for by segment. The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Europe, India, and Australia operations and sales and buying offices in other parts of the world and our Ardellis segment, which represents our wholly owned fully licensed captive insurance company based in Bermuda. Our International and Ardellis segments do not meet the quantitative thresholds in order to be separately reported and accordingly, the International and Ardellis segments have been aggregated in the “All Other” segment for reporting purposes. “Corporate” includes purchasing, transportation and administrative functions that serve our operating segments. Operating results of Corporate primarily consist of net sales to external customers initiated by UFP Purchasing and UFP Transportation and over (under) allocated costs. The operating results of UFP Real Estate, Inc., which owns and leases real estate, and UFP Transportation Ltd., which owns, leases and operates transportation equipment, are also included in the Corporate column. Inter-company lease and service charges are assessed to our operating segments for the use of these assets and services at fair market value rates. Total assets in 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., UFP Transportation, Inc., UFP Purchasing, Inc., and UFP RMS, LLC. The tables below are presented in thousands: Three Months Ended September 24, 2022 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 845,304 $ 584,808 $ 777,126 $ 112,203 $ 3,414 $ 2,322,855 Intersegment net sales 87,362 19,778 31,352 102,927 (241,419) — Earnings from operations 28,932 77,298 110,384 13,705 6,725 237,044 Three Months Ended September 25, 2021 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 696,201 $ 573,234 $ 722,872 $ 98,689 $ 2,788 $ 2,093,784 Intersegment net sales 50,546 23,148 27,574 122,470 (223,738) — Earnings from operations (26,153) 70,408 84,205 20,283 19,382 168,125 Nine Months Ended September 24, 2022 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 2,959,976 $ 1,872,510 $ 2,538,973 $ 332,186 $ 9,397 $ 7,713,042 Intersegment net sales 220,922 63,438 88,570 338,592 (711,522) — Earnings from operations 124,856 253,899 322,034 51,268 29,578 781,635 Nine Months Ended September 25, 2021 Retail Industrial Construction All Other Corporate Total Net sales to outside customers $ 2,714,440 $ 1,633,289 $ 2,021,106 $ 243,736 $ 6,758 $ 6,619,329 Intersegment net sales 163,279 66,039 62,069 345,920 (637,307) — Earnings from operations 89,443 190,344 184,330 44,565 33,865 542,547 The following table presents goodwill by segment as of September 24, 2022, and December 25, 2021 (in thousands): Retail Industrial Construction All Other Corporate Total Balance as of December 25, 2021 $ 73,376 $ 128,541 $ 89,000 $ 24,121 $ — $ 315,038 2022 Acquisitions 11,958 — — — — 11,958 2022 Purchase Accounting Adjustments 293 (5,830) (1,074) 659 — (5,952) Foreign Exchange, Net — — (215) (1,646) — (1,861) Balance as of September 24, 2022 $ 85,627 $ 122,711 $ 87,711 $ 23,134 $ — $ 319,183 The following table presents total assets by segment as of September 24, 2022, and December 25, 2021 (in thousands). Total Assets by Segment September 24, December 25, Segment Classification 2022 2021 % Change Retail $ 975,733 $ 844,189 15.6 % Industrial 855,240 741,672 15.3 Construction 834,917 736,157 13.4 All Other 324,113 343,363 (5.6) Corporate 748,544 579,890 29.1 Total Assets $ 3,738,547 $ 3,245,271 15.2 % |