Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2023 | Feb. 03, 2024 | Jul. 01, 2023 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 30, 2023 | ||
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, N.E. | ||
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, $1 par value | ||
Trading Symbol | UFPI | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Document Financial Statement Error Correction [Flag] | false | ||
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) | 61,624,287 | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Firm ID | 34 | ||
Auditor Location | Grand Rapids, MI | ||
Current Fiscal Year End Date | --12-30 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000912767 | ||
Amendment Flag | false | ||
Entity Public Float | $ 5,684,288,927 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 1,118,329 | $ 559,397 |
Restricted cash | 3,927 | 226 |
Investments | 34,745 | 36,013 |
Accounts receivable, net | 549,499 | 617,604 |
Inventories: | ||
Raw materials | 352,785 | 398,798 |
Finished goods | 375,003 | 574,429 |
Total inventories | 727,788 | 973,227 |
Refundable income taxes | 29,327 | 33,126 |
Other current assets | 38,474 | 42,520 |
TOTAL CURRENT ASSETS | 2,502,089 | 2,262,113 |
DEFERRED INCOME TAXES | 4,228 | 3,750 |
RESTRICTED INVESTMENTS | 24,838 | 19,898 |
RIGHT OF USE ASSETS | 103,774 | 107,517 |
OTHER ASSETS | 87,438 | 101,262 |
GOODWILL | 336,313 | 337,320 |
INDEFINITE-LIVED INTANGIBLE ASSETS | 7,345 | 7,339 |
OTHER INTANGIBLE ASSETS, NET | 175,195 | 143,892 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Property, plant and equipment | 1,559,304 | 1,379,968 |
Less accumulated depreciation and amortization | (782,727) | (690,986) |
PROPERTY, PLANT AND EQUIPMENT, NET | 776,577 | 688,982 |
TOTAL ASSETS | 4,017,797 | 3,672,073 |
CURRENT LIABILITIES: | ||
Accounts payable | 203,055 | 206,941 |
Accrued liabilities: | ||
Compensation and benefits | 232,331 | 296,120 |
Other | 66,713 | 80,255 |
Current portion of lease liability | 22,977 | 25,577 |
Current portion of long-term debt | 42,900 | 2,942 |
TOTAL CURRENT LIABILITIES | 567,976 | 611,835 |
LONG-TERM DEBT | 233,534 | 275,154 |
LEASE LIABILITY | 84,885 | 85,419 |
DEFERRED INCOME TAXES | 45,248 | 51,265 |
OTHER LIABILITIES | 35,934 | 44,697 |
TOTAL LIABILITIES | 967,577 | 1,068,370 |
TEMPORARY EQUITY: | ||
Redeemable noncontrolling interest | 20,030 | 6,880 |
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 160,000,000; issued and outstanding, 61,621,004 and 61,618,193 | 61,621 | 61,618 |
Additional paid-in capital | 354,702 | 294,029 |
Retained earnings | 2,582,332 | 2,217,410 |
Accumulated other comprehensive loss | 1,106 | (9,075) |
Total controlling interest shareholders' equity | 2,999,761 | 2,563,982 |
Noncontrolling interest | 30,429 | 32,841 |
TOTAL SHAREHOLDERS' EQUITY | 3,030,190 | 2,596,823 |
TOTAL LIABILITIES, TEMPORARY EQUITY AND SHAREHOLDERS' EQUITY | $ 4,017,797 | $ 3,672,073 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 30, 2023 | Dec. 31, 2022 |
SHAREHOLDERS' EQUITY: | ||
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 160,000,000 | 160,000,000 |
Common stock, shares issued (in shares) | 61,621,004 | 61,618,193 |
Common stock, shares outstanding (in shares) | 61,621,004 | 61,618,193 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME | |||
NET SALES | $ 7,218,384 | $ 9,626,739 | $ 8,636,134 |
COST OF GOODS SOLD | 5,799,446 | 7,837,278 | 7,229,167 |
GROSS PROFIT | 1,418,938 | 1,789,461 | 1,406,967 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 766,633 | 832,079 | 682,253 |
OTHER LOSSES (GAINS), NET | 5,771 | 7,198 | (12,840) |
EARNINGS FROM OPERATIONS | 646,534 | 950,184 | 737,554 |
INTEREST EXPENSE | 12,842 | 13,910 | 13,814 |
INTEREST AND INVESTMENT INCOME | (39,916) | (725) | (6,498) |
EQUITY IN LOSS OF INVESTEE | 2,367 | 2,183 | 3,902 |
INTEREST AND OTHER | (24,707) | 15,368 | 11,218 |
EARNINGS BEFORE INCOME TAXES | 671,241 | 934,816 | 726,336 |
INCOME TAXES | 156,784 | 229,852 | 173,972 |
NET EARNINGS | 514,457 | 704,964 | 552,364 |
NET (EARNINGS) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | (145) | (12,313) | (16,724) |
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST | $ 514,312 | $ 692,651 | $ 535,640 |
EARNINGS PER SHARE - BASIC (USD per share) | $ 8.21 | $ 11.05 | $ 8.61 |
EARNINGS PER SHARE - DILUTED (USD per share) | $ 8.07 | $ 10.97 | $ 8.59 |
OTHER COMPREHENSIVE INCOME: | |||
NET EARNINGS | $ 514,457 | $ 704,964 | $ 552,364 |
OTHER COMPREHENSIVE INCOME (LOSS) | 14,836 | (2,498) | (5,296) |
COMPREHENSIVE INCOME | 529,293 | 702,466 | 547,068 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (4,800) | (13,485) | (15,039) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ 524,493 | $ 688,981 | $ 532,029 |
CONSOLIDATED STATEMENTS OF SHAR
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. 26, 2020 | $ 61,206 | $ 218,224 | $ 1,182,680 | $ (1,794) | $ 22,836 | $ 1,483,152 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 535,640 | 16,724 | 552,364 | |||
Foreign currency translation adjustment | (2,584) | (1,685) | (4,269) | |||
Unrealized gain on investments and other | (1,027) | (1,027) | ||||
Distributions to NCI | (6,750) | (6,750) | ||||
NCI related to business combinations | 6,831 | 6,831 | ||||
Cash dividends | (40,209) | (40,209) | ||||
Issuance of shares under employee stock purchase plan | 33 | 2,083 | 2,116 | |||
Net issuance (forfeitures) of shares under stock grant programs | 546 | 3,506 | 10 | 4,062 | ||
Issuance of shares under deferred compensation plans | 117 | (117) | ||||
Expense associated with share-based compensation arrangements | 11,071 | 11,071 | ||||
Accrued expense under deferred compensation plans | 9,228 | 9,228 | ||||
Ending balance at Dec. 25, 2021 | 61,902 | 243,995 | 1,678,121 | (5,405) | 37,956 | 2,016,569 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 692,651 | 12,210 | 704,861 | |||
Foreign currency translation adjustment | (1,841) | 1,802 | (39) | |||
Unrealized gain on investments and other | (1,829) | (1,829) | ||||
Distributions to NCI | (12,024) | (12,024) | ||||
Contributions to NCI | 538 | 538 | ||||
Redeemable NCI | (7,641) | (7,641) | ||||
Cash dividends | (58,860) | (58,860) | ||||
Issuance of shares under employee stock purchase plan | 44 | 2,725 | 2,769 | |||
Net issuance (forfeitures) of shares under stock grant programs | 806 | 9,919 | 25 | 10,750 | ||
Issuance of shares under deferred compensation plans | 113 | (113) | ||||
Repurchase of shares | (1,247) | (94,527) | (95,774) | |||
Expense associated with share-based compensation arrangements | 27,987 | 27,987 | ||||
Accrued expense under deferred compensation plans | 9,516 | 9,516 | ||||
Ending balance at Dec. 31, 2022 | 61,618 | 294,029 | 2,217,410 | (9,075) | 32,841 | 2,596,823 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings (loss) | 514,312 | 663 | 514,975 | |||
Foreign currency translation adjustment | 9,762 | 4,267 | 14,029 | |||
Unrealized gain on investments and other | 419 | 419 | ||||
Distributions to NCI | (7,355) | (7,355) | ||||
Other | 817 | (930) | (113) | |||
Purchase of remaining NCI of subsidiary | (1,210) | (917) | (2,127) | |||
Cash dividends | (68,238) | (68,238) | ||||
Issuance of shares under employee stock purchase plan | 33 | 2,717 | 2,750 | |||
Net issuance (forfeitures) of shares under stock grant programs | 821 | 14,485 | 22 | 15,328 | ||
Issuance of shares under deferred compensation plans | 124 | (124) | ||||
Repurchase of shares | (975) | (81,174) | (82,149) | |||
Expense associated with share-based compensation arrangements | 34,727 | 34,727 | ||||
Accrued expense under deferred compensation plans | 10,895 | 10,895 | ||||
Ending balance at Dec. 30, 2023 | $ 61,621 | $ 354,702 | $ 2,582,332 | $ 1,106 | $ 30,429 | $ 3,030,190 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Increase (Decrease) in Temporary Equity | ||
Beginning balance | $ 6,880 | |
Net earnings (loss) | (518) | 103 |
Foreign currency translation adjustment | 388 | (630) |
NCI related to business combinations | 13,237 | (234) |
Other | 43 | |
Redeemable NCI | 7,641 | |
Ending balance | $ 20,030 | $ 6,880 |
CONSOLIDATED STATEMENTS OF SH_3
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Increase (Decrease) in Stockholders' Equity | |||
Cash dividends per share (USD per share) | $ 1.10 | $ 0.95 | $ 0.65 |
Net issuance of shares under employee stock plans (in shares) | 32,944 | 44,012 | 33,104 |
Net issuance (forfeiture) of shares under stock grant programs (in shares) | 820,591 | 805,562 | 546,235 |
Issuance of shares under deferred compensation plans (in shares) | 124,145 | 113,384 | 116,732 |
Repurchase of shares (in shares) | 974,869 | 1,246,616 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
CASH FLOWS USED IN OPERATING ACTIVITIES: | |||
Net earnings | $ 514,457 | $ 704,964 | $ 552,364 |
Adjustments to reconcile net earnings to net cash used in operating activities: | |||
Depreciation | 110,563 | 94,063 | 84,184 |
Amortization of intangibles | 21,327 | 19,499 | 13,948 |
Expense associated with share-based and grant compensation arrangements | 34,899 | 28,156 | 11,224 |
Deferred income taxes (credit) | (5,573) | (16,289) | 5,653 |
Unrealized (gain) loss on investments and other | (2,435) | 5,768 | (4,118) |
Equity in loss of investee | 2,367 | 2,183 | 3,902 |
Net (gain) loss on sale and disposition of assets | (260) | 1,285 | (11,992) |
Impairment of goodwill and other intangibles | 4,261 | ||
Gain from reduction of estimated earnout liability | (3,177) | ||
Changes in: | |||
Accounts receivable | 81,659 | 130,704 | (85,439) |
Inventories | 250,561 | 718 | (260,301) |
Accounts payable and cash overdraft | (3,578) | (137,907) | 78,060 |
Accrued liabilities and other | (40,920) | (5,838) | 124,992 |
NET CASH FROM OPERATING ACTIVITIES | 959,890 | 831,567 | 512,477 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (180,382) | (174,124) | (151,166) |
Proceeds from sale of property, plant and equipment | 3,291 | 3,805 | 29,973 |
Acquisitions, net of cash received and purchase of equity method investment | (52,383) | (180,151) | (475,960) |
Purchase and dissolution of remaining noncontrolling interest in subsidiary | (2,127) | ||
Purchases of investments | (29,806) | (19,875) | (23,797) |
Proceeds from sale of investments | 29,935 | 12,874 | 14,882 |
Other | (8,692) | 3,535 | (5,119) |
NET CASH USED IN INVESTING ACTIVITIES | (240,164) | (353,936) | (611,187) |
CASH FLOWS USED IN FINANCING ACTIVITIES: | |||
Borrowings under revolving credit facilities | 28,462 | 605,101 | 892,072 |
Repayments under revolving credit facilities | (30,125) | (607,549) | (888,695) |
Repayments of debt | (29) | (38,719) | |
Contingent consideration payments and other | (6,262) | (2,856) | (3,176) |
Proceeds from issuance of common stock | 2,750 | 2,769 | 2,116 |
Dividends paid to shareholders | (68,238) | (58,860) | (40,209) |
Distributions to noncontrolling interest | (7,355) | (12,024) | (6,750) |
Repurchase of common stock | (82,149) | (95,774) | |
Other | 86 | (2,298) | (364) |
NET CASH USED IN FINANCING ACTIVITIES | (162,860) | (210,210) | (45,006) |
Effect of exchange rate changes on cash | 5,767 | 979 | (1,669) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 562,633 | 268,400 | (145,385) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 559,623 | 291,223 | 436,608 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ 1,122,256 | $ 559,623 | $ 291,223 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL (Parenthetical) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||
Cash and cash equivalents, beginning of period | $ 559,397 | $ 286,662 | $ 436,507 |
Restricted cash, beginning of period | 226 | 4,561 | 101 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 559,623 | 291,223 | 436,608 |
Cash and cash equivalents, end of period | 1,118,329 | 559,397 | 286,662 |
Restricted cash, end of period | 3,927 | 226 | 4,561 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ 1,122,256 | $ 559,623 | $ 291,223 |
CONSOLIDATED STATEMENTS OF CA_3
CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL AND NON-CASH FINANCING ACTIVITIES (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
SUPPLEMENTAL INFORMATION: | |||
Interest paid | $ 12,736 | $ 13,953 | $ 14,077 |
Income taxes paid | 158,145 | 274,616 | 167,043 |
NON-CASH INVESTING ACTIVITIES | |||
Capital expenditures included in accounts payable | 3,178 | 3,185 | 3,256 |
NON-CASH FINANCING ACTIVITIES: | |||
Common stock issued under deferred compensation plans | $ 10,978 | $ 9,282 | $ 7,487 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OPERATIONS We are a holding company whose subsidiaries supply products primarily made from wood, wood and non-wood composites, and other materials to three markets: retail, construction and packaging. Founded in 1955, we are headquartered in Grand Rapids, Michigan, with affiliates throughout North America, Europe, Asia and Australia. PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements, have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission (the "SEC"), represent our assets and liabilities and operating results. The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships. All significant intercompany balances and transactions have been eliminated in consolidation. We consolidate entities in which we have a controlling financial interest. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members as well as whether the entity is a variable interest entity (“VIE”) and whether we are the primary beneficiary. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The primary beneficiary is required to consolidate the VIE. We account for unconsolidated VIEs using the equity method of accounting. As a result of the investment in Dempsey on June 27, 2022, we own 50% of the issued equity of that entity, and the remaining 50% of the issued equity is owned by the previous owners (“Sellers”). The investment in Dempsey is an unconsolidated variable interest entity and we have accounted for it using the equity method of accounting because we do not have a controlling financial interest in the entity. Per the contracts, the Sellers have a put right to sell their equity interest to us for $50 million and we have a call right to purchase the Seller’s equity interest for $70 million, which are both first exercisable in June 2025 and expire in June 2030. As of December 30, 2023, the carrying value of our investment in Dempsey is $61.4 million and is recorded in Other Assets. Our maximum exposure to loss consists of our investment amount and any contingent loss that may occur in the future as a result of a change in the fair value of Dempsey relative to the strike price of the put option. NONCONTROLLING INTEREST IN SUBSIDIARIES Noncontrolling interest in results of operations of consolidated subsidiaries represents the noncontrolling shareholders’ share of the income or loss of various consolidated subsidiaries. The noncontrolling interest reflects the original investment by these noncontrolling shareholders combined with their proportional share of the earnings or losses of these subsidiaries, net of distributions paid. FISCAL YEAR Our fiscal year is a 52 or 53 week period, ending on the last Saturday of December. Unless otherwise stated, references to 2023, 2022, and 2021 relate to the fiscal years ended December 30, 2023, December 31, 2022, and December 25, 2021, respectively. Fiscal year 2023 was comprised of 52 weeks, fiscal year 2022 was comprised of 53 weeks and fiscal year 2021 was comprised of 52 weeks. FAIR VALUE DISCLOSURES OF FINANCIAL INSTRUMENTS We follow ASC Topic 820, Fair Value Measurements and Disclosures ● Level 1 — Financial instruments with unadjusted, quoted prices listed on active market exchanges. ● Level 2 — Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. Financial instrument values are determined using prices for recently traded financial instruments with similar underlying terms and direct or indirect observational inputs, such as interest rates and yield curves at commonly quoted intervals. ● Level 3 — Financial instruments not actively traded on a market exchange and there is little, if any, market activity. Values are determined using significant unobservable inputs or valuation techniques. Our investment portfolio includes restricted investments within our wholly-owned subsidiary, Ardellis Insurance Ltd. There are $24.8 million of restricted investments recorded as of December 30, 2023. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of cash and highly liquid investments purchased with an original maturity of three months or less. INVESTMENTS Investments are deemed to be "available for sale" and are, accordingly, carried at fair value being the quoted market value. ACCOUNTS RECEIVABLE AND ALLOWANCES We perform periodic credit evaluations of our customers and generally do not require collateral. Accounts receivable are due under a range of terms we offer to our customers. Discounts are offered, in most instances, as an incentive for early payment. We base our allowances related to receivables on historical credit and collections experience, reasonable and supportable forecasts, and the specific identification of other potential problems, including the general economic climate. Actual collections can differ, requiring adjustments to the allowances. Individual accounts receivable balances are evaluated on a monthly basis, and those balances considered uncollectible are charged to the allowance. The following table presents the activity in our accounts receivable allowances (in thousands): Additions Charged to Beginning Costs and Ending Balance Expenses Deductions* Balance Year Ended December 30, 2023: Allowance for possible losses on accounts receivable $ 11,727 $ 56,522 $ (63,116) $ 5,133 Year Ended December 31, 2022: Allowance for possible losses on accounts receivable $ 5,085 $ 79,862 $ (73,220) $ 11,727 Year Ended December 25, 2021: Allowance for possible losses on accounts receivable $ 4,629 $ 66,883 $ (66,427) $ 5,085 * Includes accounts charged off, discounts given to customers and actual customer returns and allowances. We record estimated sales returns, discounts, and other applicable adjustments as a reduction of net sales in the same period revenue is recognized. Accounts receivable retainage amounts related to long term construction contracts totaled $8.2 million and $8.0 million as of December 30, 2023 and December 31, 2022, respectively. All amounts are expected to be collected within 18 months. Concentration of accounts receivable related to our two largest customers totaled $118.0 million and $131.0 million as of December 30, 2023 and December 31, 2022, respectively. RECENTLY ISSUED ACCOUNTING GUIDANCE In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The amendments also remove certain disclosures that are no longer considered cost beneficial. The amendments are effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. Although the ASU only modifies our required income tax disclosures, we are currently evaluating the impact of adopting this guidance on the consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss to assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. Although the ASU only requires additional disclosures about the Company's operating segments, we are currently evaluating the impact of adopting this guidance on the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires that an acquirer recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and has been applied prospectively to all business combinations occurring after this date. INVENTORIES Inventories are stated at the lower of cost or net realizable value. The cost of inventories includes raw materials, direct labor, and manufacturing overhead and is determined using the weighted average cost method. Raw materials consist primarily of unfinished wood products and other materials expected to be manufactured or treated prior to sale, while finished goods represent various manufactured and treated wood products ready for sale. We have inventory on consignment at customer locations valued at $23.2 million as of December 30, 2023 and $27.9 million as of December 31, 2022. We write down the value of inventory, the impact of which is reflected in cost of goods sold in the Consolidated Statement of Earnings and Comprehensive Income, if the cost of specific inventory items on hand exceeds the amount we expect to realize from the ultimate sale or disposal of the inventory. These estimates are based on management's judgment regarding future demand and market conditions and analysis of historical experience. PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment are stated at cost. Expenditures for renewals and betterments are capitalized, and maintenance and repairs are expensed as incurred. The components of property, plant and equipment as of December 30, 2023 and December 31, 2022 were as follows: Year Ended December 30, December 31, 2023 2022 Land and improvements $ 185,188 $ 171,729 Building and improvements 400,232 355,228 Machinery and equipment 884,880 708,095 Furniture and fixtures 26,275 23,186 Construction in progress 62,729 121,730 Total Property, Plant and Equipment, Gross $ 1,559,304 $ 1,379,968 Amortization of assets held under finance leases is included in depreciation and amortized over the shorter of the estimated useful life of the asset or the lease term. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets as follows: Land improvements 5 to 15 years Buildings and improvements 10 to 32 years Machinery, equipment and office furniture 2 to 20 years LONG-LIVED ASSETS In accordance with ASC 360, Property, Plant, and Equipment GOODWILL Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are subject to impairment tests at least annually in accordance with ASC 350, Intangibles-Goodwill and Other. We review the carrying amounts of goodwill and other non-amortizable intangibles by reporting unit to determine if such assets may be impaired. As of the date of the most recent goodwill impairment test, which utilized data and assumptions as of September 30, 2023, it was determined that the fair values exceed the carrying values and there were no indicators for impairment for all of our reporting units. In the fourth quarter of 2022, we recorded a non-cash goodwill impairment charge of $2.5 million related to the Italian reporting unit within our all other segment. Subsequently, the Italian reporting unit was divested in 2023. We believe we have sufficient available information, both current and historical, to support our assumptions, judgments and estimates used in the goodwill impairment test. Our annual testing date for evaluating goodwill and indefinite-lived intangible asset impairment is the first day of our fourth fiscal quarter for all reporting units. Additionally, we review various triggering events throughout the year to determine whether a mid-year impairment analysis is required. FOREIGN CURRENCY Our foreign operations use the local currency as their functional currency. Accordingly, assets and liabilities are translated at exchange rates as of the balance sheet date and revenues and expenses are translated using weighted average rates, with translation adjustments included as a separate component of shareholders’ equity. Gains and losses arising from re-measuring foreign currency transactions are included in earnings. INSURANCE RESERVES Our wholly-owned insurance company, Ardellis Insurance Ltd.(“Ardellis”), was incorporated on April 21, 2001 under the laws of Bermuda and is licensed as a Class 3A insurer under the Insurance Act 1978 of Bermuda. On April 14, 2017 the U.S. Branch of Ardellis Insurance Ltd. was granted its Certificate of Authority to transact property and casualty insurance lines as an admitted carrier in the State of Michigan. We are primarily self-insured for certain employee health benefits, and have self-funded retentions for general liability, automobile liability, property and workers’ compensation. We are fully self-insured for environmental liabilities. The general liability, automobile liability, property, workers’ compensation, and certain environmental liabilities are managed through Ardellis; the related assets and liabilities of which are included in the consolidated financial statements as of December 30, 2023 and December 31, 2022. Our policy is to accrue amounts equal to actuarially determined or internally computed liabilities. The actuarial and internal valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical cost trends, and changes in claims experience could cause these estimates to change in the future. In addition to providing coverage for the Company, Ardellis provides Excess Loss Insurance (primarily medical and prescription drug) and Excess General Liability and Property Insurance to certain third parties. As of December 30, 2023, Ardellis had 207 such contracts in place. Reserves associated with these contracts were $7.5 million at December 30, 2023, and $5.0 million at December 31, 2022, and are accrued based on third party actuarial valuations of the expected future liabilities. INCOME TAXES Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred income tax assets to the amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred income tax assets and liabilities. REVENUE RECOGNITION Within the three primary segments (Retail, Packaging, 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 third party. Installation revenue is recognized upon completion. If we use a third party for installation, the party will act as an agent to us until completion of the installation. Installation revenue represents an immaterial share of our total net sales. We utilize 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 relative 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 relative 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 net sales disaggregated by revenue source (in thousands): Year Ended December 30, December 31, December 25, 2023 vs. 2022 2022 vs. 2021 2023 2022 2021 % Change % Change Point in Time Revenue $ 7,069,690 $ 9,442,794 $ 8,512,012 (25.1)% 10.9% Over Time Revenue 148,694 183,945 124,122 (19.2)% 48.2% Total Net Sales $ 7,218,384 $ 9,626,739 $ 8,636,134 (25.0)% 11.5% 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 on December 30, 2023 and December 31, 2022 which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands): December 30, December 31, 2023 2022 Cost and Earnings in Excess of Billings $ 3,572 $ 6,798 Billings in Excess of Cost and Earnings 9,487 10,184 SHIPPING AND HANDLING OF PRODUCT Shipping and handling costs that are charged to and reimbursed by the customer are recognized as revenue. Costs incurred related to the shipment and handling of products are classified in cost of goods sold. SHARE-BASED COMPENSATION We account for share-based awards in accordance with ASC Topic 718, Compensation – Stock Compensation EARNINGS PER SHARE Earnings per share (“EPS”) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and their respective participation rights in undistributed earnings. Participating securities include non-vested shares of restricted stock in which the participants have non-forfeitable rights to dividends during the performance period. EPS, basic and diluted, is calculated by dividing net earnings attributable to controlling interest, net of applicable taxes, by the weighted average number of shares of common stock outstanding for the period. The computation of EPS is as follows (in thousands): December 30, December 31, December 25, 2023 2022 2021 Numerator: Net earnings attributable to controlling interest $ 514,312 $ 692,651 $ 535,640 Adjustment for earnings allocated to non-vested restricted common stock equivalents (25,139) (27,488) (17,342) Net earnings for calculating EPS $ 489,173 $ 665,163 $ 518,298 Denominator: Weighted average shares outstanding 62,683 62,667 62,209 Adjustment for non-vested restricted common stock equivalents (3,064) (2,487) (2,014) Shares for calculating basic EPS 59,619 60,180 60,195 Effect of dilutive restricted common stock equivalents 1,020 473 159 Shares for calculating diluted EPS 60,639 60,653 60,354 Net earnings per share: Basic $ 8.21 $ 11.05 $ 8.61 Diluted $ 8.07 $ 10.97 $ 8.59 USE OF ACCOUNTING ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. We believe our estimates to be reasonable; however, actual results could differ from these estimates. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 30, 2023 | |
FAIR VALUE | |
FAIR VALUE | B. FAIR VALUE We apply the provisions of ASC 820, Fair Value Measurements and Disclosures, December 30, 2023 December 31, 2022 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 (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Money market funds $ 492,800 $ 6,133 $ — $ 498,933 $ 390,219 $ 1,286 $ — $ 391,505 Fixed income funds 5,112 18,976 — 24,088 2,594 16,692 — 19,286 Treasury securities 344 — — 344 343 — — 343 Equity securities 16,411 — 10,500 26,911 17,337 — — 17,337 Alternative investments — — 4,052 4,052 — — 4,102 4,102 Mutual funds: Domestic stock funds 13,330 — — 13,330 13,067 — — 13,067 International stock funds 509 — — 509 1,414 — — 1,414 Target funds 9 — — 9 8 — — 8 Bond funds 5 — — 5 130 — — 130 Alternative funds 474 — — 474 474 — — 474 Total mutual funds 14,327 — — 14,327 15,093 — — 15,093 Total $ 528,994 $ 25,109 $ 14,552 $ 568,655 $ 425,586 $ 17,978 $ 4,102 $ 447,666 From the assets measured at fair value as of December 30, 2023, listed in the table above, $498.5 million of money market funds are held in Cash and Cash Equivalents, $34.8 million of mutual funds, equity securities, and alternative investments are held in Investments, $10.5 million of equity securities are held in Other Assets, $0.1 million of money market and mutual funds are held in Other Assets for our deferred compensation plan, and $24.4 million of fixed income funds and $0.4 million of money market funds are held in Restricted Investments. As of December 31, 2022, $36.1 million of mutual funds, equity securities, and alternative investments were held in Investments, $391.2 million of money market funds were held in Cash and Cash Equivalents, $0.5 million of money market and mutual funds were held in Other Assets for our deferred compensation plan, and $19.6 million of fixed income funds and $0.3 million of money market funds were held in Restricted Investments. We maintain money market, mutual funds, bonds, and/or equity securities 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, During 2023, we made $10.5 million of investments through our Innov8 Fund, which is designed to invest in emerging projects, services, and technologies. These investments are valued as Level 3 assets and are categorized as “Equity securities.” In accordance with our investment policy, our wholly-owned company, Ardellis Insurance Ltd. ("Ardellis"), maintains an investment portfolio, totaling $59.2 million and $55.6 million as of December 30, 2023 and December 31, 2022, respectively, which has been included in the aforementioned table of total investments. This portfolio consists of domestic and international equity securities, 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): December 30, 2023 December 31, 2022 Unrealized Unrealized Cost Gain (Loss) Fair Value Cost Gain (Loss) Fair Value Fixed income $ 25,514 $ (1,426) $ 24,088 $ 21,399 $ (2,113) $ 19,286 Treasury securities 344 — 344 343 — 343 Equity 13,523 2,888 16,411 15,762 1,575 17,337 Mutual funds 12,348 1,934 14,282 13,430 1,144 14,574 Alternative investments 3,211 841 4,052 3,105 997 4,102 Total $ 54,940 $ 4,237 $ 59,177 $ 54,039 $ 1,603 $ 55,642 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 a private real estate income trust which is valued as a Level 3 asset. The net pre-tax unrealized gain was $4.2 million and $1.6 million as of December 30, 2023 and December 31, 2022. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of December 30, 2023 and December 31, 2022. |
BUSINESS COMBINATIONS AND EQUIT
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS | 12 Months Ended |
Dec. 30, 2023 | |
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS | |
BUSINESS COMBINATIONS | C. BUSINESS COMBINATIONS We completed the following business combinations in fiscal 2023 and 2022, which were accounted for using the purchase or equity method (in thousands). Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment September 20, 2023 $52,841 $ 43,785 $ 9,056 International UFP Palets y Embalajes SL (UFP Palets) Headquartered in Castellón, Spain, UFP Palets (formerly known as Palets Suller Group) is the market leader in machine-built wood pallets, serving the region's large ceramic tile industry. The company had trailing 12-month sales of approximately $38 million through August 2023. December 6, 2022 $70,942 $ 48,745 $ 22,197 Packaging Titan Corrugated, Inc. (Titan) and All Boxed Up, LLC (ABU) Located in Flower Mound, TX and founded in 2003, Titan’s primary products include boxes used in moving and storage, jumbo boxes for industrial products, corrugated shipping containers, and point-of-purchase displays. ABU distributes common box sizes manufactured by Titan throughout the United States. The combined companies had trailing 12-month sales through October 2022 of approximately $46.5 million. June 27, 2022 $69,791 $ 34,552 $ 35,239 Packaging Dempsey Wood Products, Inc. (Dempsey) Located in Orangeburg, South Carolina and founded in 1988, Dempsey is a sawmill which produces products such as kiln dried finished lumber, industrial lumber, green cut stock lumber, pine chips and shavings, landscaping mulch, and sawdust. The Company had sales of approximately $69 million in 2021. May 9, 2022 $15,398 $ 4,821 $ 10,577 Retail Cedar Poly, LLC Located in Tipton, Iowa, Cedar Poly is a full-service recycler of high-density and low-density polyethylene (HDPE and LDPE) flakes and pellets used in various products, including composite decking. The company also recycles corrugate and operates its own transportation fleet. Cedar Poly had 2021 sales of approximately $17.3 million and operates in UFP’s Deckorators business unit. December 27, 2021 $24,057 $ 20,390 $ 5,667 Retail Ultra Aluminum Manufacturing, Inc. (Ultra) Located in Howell, Michigan and founded in 1996, Ultra is a leading manufacturer of aluminum fencing, gates and railing. The company designs and produces an extensive selection of ornamental aluminum fence and railing products for contractors, landscapers, fence dealers and wholesalers. The Company had sales of approximately $45 million in 2021. The intangible assets for each acquisition were finalized and allocated to their respective identifiable intangible asset and goodwill accounts during 2023, except for the acquisition of UFP Palets. In aggregate, acquisitions made during 2023 and 2022, contributed approximately $95.0 million in net sales and $3.3 million in operating profit during 2023. We acquired UFP Palets on September 20, 2023, in which we own 80% of the issued equity of that entity, and the remaining 20% of the issued equity is owned by the previous owner (“Seller”). In the fourth quarter of 2023, we gained control over UFP Palets and thus began consolidating this entity. The investment in UFP Palets is accounted for as a business acquisition. Per the contract, the Seller has a put right to sell their equity interest to us and we have a call right to purchase the Seller’s equity interest, which are both first exercisable in September 2026. The values of the put and call options are based upon future performance. As a result of this redemption feature, we recorded redeemable noncontrolling interest, at its acquisition‑date fair value, that is classified as temporary equity in the accompanying consolidated balance sheets at December 30, 2023. The amounts assigned to major intangible classes for the business combinations mentioned above are as follows (in thousands): Non- Intangibles - Compete Customer Tax Agreements Technology Patents Relationships Tradename Goodwill Deductible UFP Palets $ — $ — $ — $ 36,708 * $ — $ 7,077 * $ 43,785 All Boxed Up — 393 — 864 29 628 1,914 Titan — 9,607 — 21,136 721 15,367 46,831 Cedar Poly 390 — — 2,490 500 1,441 4,821 Ultra — — — 6,820 5,020 8,550 20,390 *(estimate) The business combinations mentioned above were not significant to our operating results individually or in aggregate, and thus pro forma results for 2023 and 2022 are not presented. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 30, 2023 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | D. GOODWILL AND OTHER INTANGIBLE ASSETS As described in Note M — Segment Reporting, our segment structure is based upon the markets we serve and goodwill has been allocated to the segments using a relative fair value approach. The changes in the net carrying amount of goodwill by reporting segment for the years ended December 30, 2023 and December 31, 2022, are as follows (in thousands): Retail Packaging Construction All Other Corporate Total Balance as of December 25, 2021 $ 73,376 $ 128,541 $ 89,000 $ 24,121 $ — $ 315,038 2022 Acquisitions 10,971 23,862 — — — 34,833 2022 Purchase Accounting Adjustments 293 (3,494) (1,074) (4,766) — (9,041) 2022 Impairments — — — (2,480) — (2,480) Foreign Exchange, Net — — (256) (774) — (1,030) Balance as of December 31, 2022 $ 84,640 $ 148,909 $ 87,670 $ 16,101 $ — $ 337,320 2023 Acquisitions — — — 7,077 — 7,077 2023 Purchase Accounting Adjustments (979) (7,867) — — — (8,846) Foreign Exchange, Net — — 135 627 — 762 Balance as of December 30, 2023 $ 83,661 $ 141,042 $ 87,805 $ 23,805 $ — $ 336,313 As of the date of the most recent goodwill impairment test, which utilized data and assumptions as of September 30, 2023, all reporting units had fair values that were substantially in excess of their carrying values. During 2022, we experienced significantly lower than expected operating results within our Italian reporting unit, which is within the all other segment. It was determined that the carrying value of the reporting unit exceeded its fair value and as a result, we recorded a non-cash goodwill impairment charge of $2.5 million as of December 31, 2022, which represented the entire amount of the goodwill recorded within the reporting unit. Subsequently, the Italian reporting unit was divested in 2023. Indefinite-lived intangible assets totaled $7.3 million as of December 30, 2023 and December 31, 2022 related to the commercial unit within the construction segment, the international unit within the all other segment, and the Deckorators unit within the retail segment. The following amounts were included in other amortizable intangible assets, net as of December 30, 2023 and December 31, 2022 (in thousands): 2023 2022 Accumulated Accumulated Assets Amortization Net Value Assets Amortization Net Value Non-compete agreements $ 9,886 $ (5,966) $ 3,920 $ 12,577 $ (7,109) $ 5,468 Customer relationships and other 171,029 (43,403) 127,626 139,112 (34,646) 104,466 Licensing agreements — — — 4,589 (4,589) — Patents 1,622 (898) 724 1,976 (1,104) 872 Technology 12,600 (2,173) 10,427 2,600 (875) 1,725 Tradename 39,831 (12,320) 27,511 38,826 (8,393) 30,433 Software 7,666 (2,679) 4,987 1,788 (860) 928 Total $ 242,634 $ (67,439) $ 175,195 $ 201,468 $ (57,576) $ 143,892 Amortization is computed principally by the straight-line method over the estimated useful lives of the intangible assets as follows: Weighted Average Intangible Asset Type Estimated Useful Life Amortization Period Non-compete agreements 2 to 15 years 7.5 years Customer relationships and other 5 to 15 years 10.4 years Licensing agreements 10 years 10 years Patents 10 years 10 years Technology 5 to 12 years 9.5 years Tradename (amortizable) 5 to 25 years 10.9 years Software 3 to 5 years 3 years Amortization expense of intangibles totaled $21.3 million, $19.5 million and $13.9 million in 2023, 2022 and 2021, respectively. The estimated amortization expense for intangibles for each of the five succeeding fiscal years is as follows (in thousands): 2024 $ 23,580 2025 22,998 2026 20,520 2027 18,636 2028 18,021 Thereafter 71,440 Total $ 175,195 |
DEBT
DEBT | 12 Months Ended |
Dec. 30, 2023 | |
DEBT | |
DEBT | E. DEBT On November 1, 2018, we entered into a five-year, $375 million unsecured revolving credit facility with a syndicate of U.S. banks. On February 28, 2021, this credit On August 10, 2020, we entered into an unsecured Note Purchase Agreement under which we issued our 3.04% Series 2020 E Senior Notes, due August 10, 2032, in the aggregate principal amount of $50 million, our 3.08% Series 2020 F Senior Notes, due August 10, 2033, in the aggregate principal amount of $50 million, and our 3.15% Series 2020 G Senior Notes, due August 10, 2035, in the aggregate principal amount of $50 million. Outstanding letters of credit extended on our behalf on December 30, 2023 and December 31, 2022 aggregated $47.8 million and $59.0 million. These letters of credit are comprised of $37.3 million issued under the revolving credit facility, including approximately $3.3 million related to industrial development revenue bonds, and $10.5 million issued outside of the facility. We had an outstanding balance on the revolver of $3.7 million and $5.5 million, which includes foreign subsidiary borrowings at December 30, 2023, and December 31, 2022, respectively. After considering letters of credit, we had $709.0 million and $741.2 million in remaining availability on the revolver on December 30, 2023, and December 31, 2022, respectively. Letters of credit have one-year terms, include an automatic renewal clause, and are charged an annual interest rate of 112.5 to 122.5 basis points, based upon our financial performance. Long-term debt obligations are summarized as follows on December 30, 2023 and December 31, 2022 (amounts in thousands): 2023 2022 Series 2020 Senior Notes E, due on August 10, 2032, interest payable semi-annually at 3.04% $ 50,000 $ 50,000 Series 2020 Senior Notes F, due on August 10, 2033, interest payable semi-annually at 3.08% 50,000 50,000 Series 2020 Senior Notes G, due on August 10, 2035, interest payable semi-annually at 3.15% 50,000 50,000 Series 2018 Senior Notes C, due on June 14, 2028, interest payable semi-annually at 4.20% 40,000 40,000 Series 2018 Senior Notes D, due on June 14, 2030, interest payable semi-annually at 4.27% 35,000 35,000 Series 2012 Senior Notes Tranche B, due on December 17, 2024, interest payable semi-annually at 3.98% 40,000 40,000 Foreign subsidiary borrowings under revolving credit facility, due on December 6, 2027, interest payable monthly at a floating rate (5.44% on December 30, 2023 and 4.13% on December 31, 2022) 3,692 5,465 Series 1999 Industrial Development Revenue Bonds, due on August 1, 2029, interest payable monthly at a floating rate (3.33% on December 30, 2023 and 1.04% on December 31, 2022) 3,300 3,300 Finance leases and foreign affiliate debt 4,592 4,565 276,584 278,330 Less current portion (42,900) (2,942) Less debt issuance costs (150) (234) Long-term portion $ 233,534 $ 275,154 Financial covenants on the unsecured revolving credit facility and unsecured notes include minimum interest coverage tests and a maximum leverage ratio. The agreements also restrict the amount of additional indebtedness we may incur and the amount of assets which may be sold among other industry standard covenants. We were within all of our lending requirements on December 30, 2023 and December 31, 2022. On December 30, 2023, the principal maturities of long-term debt and finance lease obligations are as follows (in thousands): 2024 $ 42,823 2025 640 2026 186 2027 3,896 2028 40,223 Thereafter 188,666 Total $ 276,434 On December 30, 2023, the estimated fair value of our long-term debt, including the current portion, was $241.4 million, which was $35.1 million less than the carrying value. The estimated fair value is based on rates anticipated to be available to us for debt with similar terms and maturities. We consider the valuations of our long-term debt, including the current portion, to be Level 2 liabilities which rely on quoted prices in markets that are not active or observable inputs over the full term of the liability. |
LEASES
LEASES | 12 Months Ended |
Dec. 30, 2023 | |
LEASES | |
LEASES | F. LEASES We determine if an arrangement is a lease at inception. We lease certain real estate under non-cancelable operating lease agreements with typical original terms ranging from one renewal five equipment and aircraft operating one We believe finance leases have no significant impact to our consolidated balance sheet and statement of earnings as of December 30, 2023. As of December 30, 2023, we have no leases that have not yet commenced that would significantly impact the rights, obligations, and our financial position. There were no lease transactions between related parties as of December 30, 2023. The rates implicit in our leases are primarily not readily available. To determine the discount rate used to present value the lease payments, we utilize the 7-year treasury note rate plus a blend of rate spreads associated with our 10 to 15 year senior notes along with estimated spreads based on current market conditions. We feel the determined rate is a reasonable representation of our lease population. Lease costs under non-cancelable operating leases on December 30, 2023 and December 31, 2022 are as follows (in thousands): 2023 2022 Operating lease cost $ 33,829 $ 32,458 Short-term lease cost 9,525 10,490 Variable lease cost 6,332 5,291 Sublease income (2,267) (2,876) Total lease cost $ 47,419 $ 45,363 Rent expense was approximately $49.7 million, $48.2 million, and $40.1 million in 2023, 2022, and 2021, respectively. The amounts paid for operating leases, included in the measurement of lease liabilities, were $32.4 million in the year ended December 30, 2023 and $30.2 million in the year ended December 31, 2022. In addition, right-of-use assets obtained in exchange for new operating lease liabilities were approximately $35.4 million and $32.0 million, respectively, for the years ended December 30, 2023 and December 31, 2022. Future minimum payments under non-cancelable operating leases on December 30, 2023 are as follows (in thousands): Operating Leases 2024 $ 32,796 2025 29,435 2026 27,104 2027 17,998 2028 13,517 Thereafter 31,686 Total minimum lease payments $ 152,536 Less present value discount (44,674) Total lease liability $ 107,862 As of December 30, 2023 and December 31, 2022, the weighted average lease term for operating leases was 7.21 years and 6.78 years, respectively. Similarly, the weighted average discount rate for operating leases was 4.53% and 3.70%, respectively. |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Dec. 30, 2023 | |
DEFERRED COMPENSATION | |
DEFERRED COMPENSATION | G. DEFERRED COMPENSATION We have a program whereby certain executives irrevocably elected to defer receipt of certain compensation in 1985 through 1988. Deferred compensation payments to these executives commenced upon their retirement. There was no remaining deferred compensation liability on December 30, 2023 and the remaining deferred compensation liability on December 31, 2022 was $0.1 million. We purchased life insurance on these executives, payable to us in amounts which, if assumptions made as to mortality experience, policy dividends, and other factors are realized, will accumulate cash values adequate to reimburse us for all payments for insurance and deferred compensation obligations. The investment in life insurance contracts as of December 30, 2023 and December 31, 2022, was $12.2 million and $11.6 million, respectively, and is recorded in “Other Assets” on the Consolidated Balance Sheet. We also maintain a non-qualified deferred compensation plan (the "Plan") for the benefit of senior management employees who may elect to defer a portion of their annual bonus payments and salaries. The Plan provides investment options similar to our 401(k) plan, including our stock. The investment in our stock is funded by the issuance of shares to a Rabbi trust, and may only be distributed in kind. Assets held by the Plan totaled approximately |
COMMON STOCK
COMMON STOCK | 12 Months Ended |
Dec. 30, 2023 | |
COMMON STOCK | |
COMMON STOCK | H. COMMON STOCK We maintain and administer our shareholder approved Employee Stock Purchase Plan. The Employee Stock Purchase Plan allows eligible employees to purchase shares of our stock at a share price equal to 85% of fair market value on the purchase date. We have expensed the fair value of the compensation associated with these awards, which approximates the discount. The amount of expense is nominal. We maintain and administer our shareholder approved Director Compensation Plan. The Director Compensation Plan allows eligible members of the Board of Directors to defer the cash portion of their retainer and committee fees, credited in the form of stock units, and receive shares of our stock at the time of or following their retirement, disability or death. The number of shares to be received is equal to the amount of the cash portion of their retainer and committee fees deferred multiplied by 110%, divided by the fair market value of a share of our stock at the time of deferral. The number of units is increased by the amount of dividends paid on our common stock. The units are immediately vested as of the grant date, since they are considered payment for services rendered quarterly. We recognized expense for this plan of $1.9 million in 2023, $2.0 million in 2022, and $1.7 million in 2021. Effective January 1, 2017, this plan was amended to allow directors to defer payment of the annual retainer paid in the form of our common stock. The number of shares to be received for their portion of the retainer that is deferred is equal to the amount of shares plus the number of shares attributable to cash dividends payable on those deferred shares. Finally, we maintain and administer our shareholder approved Long Term Stock Incentive Plan (the "LTSIP”). The LTSIP provides for the grant of stock options, stock appreciation rights, restricted stock, performance shares, sales incentive awards, and other stock-based awards. Executive Stock Match awards are granted in the year following the requisite service period, which begins at the beginning of each fiscal year, and fully vest on the fifth anniversary of the grant date. Refer to Notes to Consolidated Financial Statements, Note G, "Deferred Compensation" for additional information on the “Plan”. There is no unrecognized compensation expense remaining for stock options in 2023, 2022, and 2021. Below is a summary of common stock issuances for 2023 and 2022 (in thousands, except per share data): December 30, 2023 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 33 $ 98.20 Shares issued under the employee stock gift program 2 95.42 Shares issued under the director compensation plan 3 92.82 Shares issued under the LTSIP 756 86.14 Shares issued under the executive stock match plan 75 85.89 Forfeitures (15) Total shares issued under stock grant programs 821 $ 86.16 Shares issued under the deferred compensation plans 124 $ 88.43 December 31, 2022 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 44 $ 73.45 Shares issued under the employee stock gift program 2 78.23 Shares issued under the director retainer stock program 4 79.98 Shares issued under the LTSIP 755 82.73 Shares issued under the executive stock grants plan 62 82.87 Forfeitures (17) Total shares issued under stock grant programs 806 $ 82.71 Shares issued under the deferred compensation plans 113 $ 81.86 A summary of the nonvested restricted stock awards granted under the LTSIP is as follows: Weighted- Unrecognized Average Weighted- Compensation Period to Restricted Average Grant Expense Recognize Awards Date Fair Value (in millions) Expense Nonvested at December 26, 2020 1,363,794 $ 35.14 $ 6.3 0.62 years Granted 560,516 60.24 Vested (274,271) 26.50 Forfeited (23,007) 39.68 Nonvested at December 25, 2021 1,627,032 $ 45.23 $ 6.6 0.43 years Granted 815,874 79.97 Vested (286,661) 34.00 Forfeited (17,990) 54.07 Nonvested at December 31, 2022 2,138,255 $ 58.70 $ 51.4 3.74 years Granted 830,346 86.11 Vested (233,763) 40.50 Forfeited (14,001) 63.54 Nonvested at December 30, 2023 2,720,837 $ 68.61 $ 76.9 3.68 years Under the Stock Purchase Plan and LTSIP, we recognized share-based compensation expense of $34.9 million, $28.2 million, and $11.2 million and the related total income tax benefits of $8.2 million, $6.9 million, and $2.7 million in 2023, 2022 and 2021, respectively. For the year-ended December 30, 2023, we determined that $28.9 million of share-based bonus awards, representing 254,746 shares, will be awarded to qualified employees as it relates to the Company’s 2023 performance and granted in 2024 under the LTSIP. Awards granted generally vest after a period of three five We have a Sales Incentive Plan for certain eligible employees. Under this plan, sales incentives are determined and calculated using a formula-based approach and estimated monthly based on specific performance metrics. This Plan places a cap on cash payments with the remaining earned incentive being settled in share-based awards. For the year-ended December 30, 2023, we determined that $5.9 million of share-based sales incentive awards, representing 51,802 shares, will be awarded to qualified employees based on the 2023 performance year and granted in 2024. These awards will vest after a period of five years from the grant date. As of December 30, 2023 and December 31, 2022, we recognized approximately $1.0 million and $0.9 million of compensation expense related to share-based sales incentive awards for each of those respective performance years. In 2023, 2022 and 2021, cash received from share issuances under our plans was $2.7 million, $2.8 million and $2.1 million, respectively. During 2023, we repurchased 974,869 shares of our common stock at an average share price of $84.27. During 2022, we repurchased approximately 1,246,616 shares of our common stock at an average share price of $76.83. Effective July 26, 2023, our board authorized the repurchase of up to $200 million worth of shares of outstanding stock through July 31, 2024. This share authorization supersedes and replaces our prior share repurchase authorizations. We currently have remaining authorization to repurchase up to $173 million through July 31, 2024. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 30, 2023 | |
RETIREMENT PLANS | |
RETIREMENT PLANS | I. RETIREMENT PLANS We have a profit sharing and 401(k) plan for the benefit of substantially all of our employees, excluding the employees of certain wholly-owned subsidiaries. Amounts contributed to the plan are made at the discretion of the Board of Directors. We matched 25% of employee contributions in 2023, 2022, and 2021, on a discretionary basis, totaling $8.8 million, $11.7 million, and $9.2 million respectively. Included within the total employee matched contribution was an additional matched contribution for hourly employees of $1.8 million, $4.6 million and $3.7 million for 2023, 2022 and 2021, respectively, based on meeting certain performance goals during those years. The basis for matching contributions may not exceed the lesser of 6% of the employee’s annual compensation or the IRS limitation. We maintain a retirement plan for certain officers of the Company (who have at least 20 years of service with the Company and at least 10 years of service as an officer) whereby we will pay, upon retirement, certain benefits including health care benefits, for a specified period of time if certain eligibility requirements are met. Approximately $15.5 million and $14.8 million are accrued in “Other Liabilities” for this plan on December 30, 2023 and December 31, 2022, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 30, 2023 | |
INCOME TAXES | |
INCOME TAXES | J. INCOME TAXES Income tax provisions for the years ended December 30, 2023, December 31, 2022, and December 25, 2021 are summarized as follows (in thousands): 2023 2022 2021 Currently Payable: Federal $ 123,257 $ 181,029 $ 115,077 State and local 28,580 44,646 30,441 Foreign 10,808 17,336 21,095 162,645 243,011 166,613 Net Deferred: Federal (2,249) (8,561) 6,242 State and local (3,223) (3,657) 118 Foreign (389) (941) 999 (5,861) (13,159) 7,359 Total income tax expense $ 156,784 $ 229,852 $ 173,972 The components of earnings before income taxes consist of the following: 2023 2022 2021 U.S. $ 633,816 $ 876,071 $ 645,316 Foreign 37,425 58,745 81,020 Total $ 671,241 $ 934,816 $ 726,336 The effective income tax rates are different from the statutory federal income tax rates for the following reasons: 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State and local taxes (net of federal benefits) 3.6 3.4 3.3 Tax credits, including foreign tax credit (0.9) (0.8) (0.6) Change in uncertain tax positions reserve 0.2 (0.1) (0.1) Other permanent differences 0.2 0.1 (0.4) Other, net (0.7) 1.0 0.7 Effective income tax rate 23.4 % 24.6 % 23.9 % Temporary differences which give rise to deferred income tax assets and (liabilities) on December 30, 2023 and December 31, 2022 are as follows (in thousands): 2023 2022 Employee benefits $ 45,661 $ 37,893 Lease liability 27,918 28,746 Net operating loss carryforwards 7,881 6,891 Foreign subsidiary capital loss carryforward 935 500 Other tax credits 31 102 Inventory 2,397 3,732 Reserves on receivables 2,203 3,273 Accrued expenses 3,373 6,791 Capitalized research and development costs 28,021 11,080 Gross deferred income tax assets 118,420 99,008 Valuation allowance (6,014) (4,618) Deferred income tax assets 112,406 94,390 Depreciation (82,617) (69,711) Intangibles (43,455) (43,643) Right of use assets (26,870) (27,849) Other, net (484) (702) Deferred income tax liabilities (153,426) (141,905) Net deferred income tax liability $ (41,020) $ (47,515) As of December 30, 2023, we had federal, state and foreign net operating loss carryforwards of $7.9 million and state tax credit carryforwards of $0.1 million, which will expire at various dates. The NOL and credit carryforwards expire as follows: Net Operating Losses Tax Credits U.S. State Foreign U.S. State 2024 - 2028 $ — $ 27 $ 206 $ — $ — 2029 - 2033 — 396 1,268 — — 2034 - 2038 — 1,618 1,656 — 31 2039 - 2043 208 1,373 — — — Thereafter — — 570 — — Total $ 208 $ 3,414 $ 3,700 $ — $ 31 As of December 30, 2023, we believe that it is more likely than not that the benefit from certain state and foreign NOL carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance of $5.5 million against the various NOLs. Furthermore, there is a valuation allowance of $0.5 million against a capital loss carryforward we have for a wholly-owned subsidiary, UFP Canada, Inc. Based upon the business activity and the nature of the assets of this subsidiary, our ability to realize a future benefit from this carryforward is doubtful. The capital loss has an unlimited carryforward and therefore will not expire unless there is a change in control of the subsidiary. The Organization of Economic Cooperation and Development (“OECD”) reached an agreement among various countries to implement a minimum 15% tax rate on certain multinational enterprises, commonly referred to as Pillar Two. Many countries continue to announce changes in their tax laws, many of them effective for tax years beginning Jan 1, 2024. We continue to analyze the impacts of these legislative changes to our effective tax rate, consolidated financial statements, and related disclosures. As of Dec 30, 2023, we do not expect the impact of Pillar Two legislation to have a material impact on our tax expense. |
ACCOUNTING FOR UNCERTAINTY IN I
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES | 12 Months Ended |
Dec. 30, 2023 | |
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES | |
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES | K. ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ASC 740, Income Taxes A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2023 2022 2021 Gross unrecognized tax benefits beginning of year $ 3,217 $ 3,603 $ 3,892 (Decrease) increase in tax positions for prior years 943 (216) 437 Increase in tax positions for current year 1,286 764 839 Lapse in statute of limitations (675) (934) (1,565) Gross unrecognized tax benefits end of year $ 4,771 $ 3,217 $ 3,603 Our effective tax rate would have been affected by the unrecognized tax benefits had this amount been recognized as a reduction to income tax expense. We recognized interest and penalties for unrecognized tax benefits in our provision for income taxes. The liability for unrecognized tax benefits included accrued interest and penalties of $0.4 million for the year December 30, 2023, $0.3 million for the year December 31, 2022, and $0.5 million for the year December 25, 2021. We file income tax returns in the United States and in various state, local and foreign jurisdictions. The federal and a majority of state and foreign jurisdictions are no longer subject to income tax examinations for years before 2019. A number of routine state and local examinations are currently ongoing. Due to the potential for resolution of state examinations, the expiration of various statutes of limitation, and new positions that may be taken, it is reasonably possible that the amount of unrecognized tax benefits that would reverse through the income statement in the next twelve months is $1.2 million. |
COMMITMENTS, CONTINGENCIES, AND
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | 12 Months Ended |
Dec. 30, 2023 | |
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | |
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | L. 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. In addition, on December 30, 2023, 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 December 30, 2023, we had outstanding purchase commitments on commenced capital projects of approximately $82.9 million. We provide a variety of warranties for products we manufacture. Historically, warranty claims have not been material. We distribute products manufactured by other companies. While we do not warrant these products, we have received claims as a distributor of these products when the manufacturer no longer exists or has the ability to pay. Historically, these costs have not had a material effect on our consolidated financial statements. As part of our operations, we supply building materials and labor to site-built construction projects or we jointly bid on contracts with framing companies for such projects. In some instances we are required to post payment and performance bonds to insure the project owner that the products and installation services are completed in accordance with our contractual obligations. We have agreed to indemnify the surety for claims made against the bonds. As of December 30, 2023, we had approximately $20.9 million in outstanding payment and performance bonds for open projects. We had approximately $6.9 million in payment and performance bonds outstanding for completed projects which are still under warranty. On December 30, 2023, we had outstanding letters of credit totaling $47.8 million, primarily related to certain insurance contracts, industrial development revenue bonds, and other debt agreements described further below. In lieu of cash deposits, we provide irrevocable letters of credit in favor of our insurers and other third parties to guarantee our performance under certain insurance contracts and other legal agreements. As of December 30, 2023, we have irrevocable letters of credit outstanding totaling approximately $44.5 million for these types of arrangements. We have reserves recorded on our balance sheet, in accrued liabilities, that reflect our expected future liabilities under those 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 $3.3 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 2023 which would require us to recognize a liability on our balance sheet. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 30, 2023 | |
SEGMENT REPORTING | |
SEGMENT REPORTING | M. SEGMENT REPORTING ASC 280, Segment Reporting (“ASC 280”), defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of UFP Retail Solutions, UFP Packaging 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, Packaging, and Construction segments. In the case of locations which serve multiple segments, results are allocated and accounted for by segment. Two customers, The Home Depot and Lowes, accounted for approximately 17% and 12%, respectively, of our total net sales in fiscal 2023, 15% and 11%, respectively, of our total net sales in fiscal 2022 and 16% and 10%, respectively, in 2021. The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Europe, Asia, 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. 2023 All Retail Packaging Construction Other Corporate Total Net sales to outside customers $ 2,886,515 $ 1,838,200 $ 2,161,059 $ 328,884 $ 3,726 $ 7,218,384 Intersegment net sales 565,325 83,549 96,729 268,210 (1,013,813) — Interest expense (1) 111 7 — (3,020) 15,744 12,842 Amortization expense 4,566 8,849 2,904 3,488 1,520 21,327 Depreciation expense 23,943 32,996 19,546 3,994 30,084 110,563 Segment earnings before income taxes 167,955 193,563 243,357 37,573 28,793 671,241 Segment assets 781,005 798,623 621,762 364,274 1,452,133 4,017,797 Capital expenditures 52,756 52,694 56,793 1,432 16,707 180,382 2022 All Retail Packaging Construction Other Corporate Total Net sales to outside customers $ 3,650,639 $ 2,394,681 $ 3,143,868 $ 431,611 $ 5,940 $ 9,626,739 Intersegment net sales 392,740 78,409 110,523 421,406 (1,003,078) — Interest expense (1) 177 (2) — (1,310) 15,045 13,910 Amortization expense 4,131 6,925 3,358 4,571 514 19,499 Depreciation expense 19,898 28,191 15,364 2,992 27,618 94,063 Segment earnings before income taxes 150,165 333,087 397,446 56,813 (2,695) 934,816 Segment assets 889,417 885,878 712,837 308,688 875,253 3,672,073 Capital expenditures 55,806 55,129 54,167 3,968 5,054 174,124 2021 All Retail Packaging Construction Other Corporate Total Net sales to outside customers $ 3,418,337 $ 2,148,142 $ 2,698,434 $ 362,473 $ 8,748 $ 8,636,134 Intersegment net sales 214,400 85,954 82,026 455,874 (838,254) — Interest expense (1) 98 12 1 184 13,519 13,814 Amortization expense 2,780 6,093 3,525 1,336 214 13,948 Depreciation expense 16,955 26,219 13,151 2,094 25,765 84,184 Segment earnings before income taxes 124,790 264,958 264,238 80,905 (8,555) 726,336 Segment assets 844,189 741,672 736,157 343,363 579,890 3,245,271 Capital expenditures 40,408 42,652 22,344 5,140 40,622 151,166 (1) Information regarding principal geographic areas was as follows (in thousands): 2023 2022 2021 Long-Lived Long-Lived Long-Lived Tangible Tangible Tangible Net Sales Assets Net Sales Assets Net Sales Assets United States $ 6,935,431 $ 779,748 $ 9,254,676 $ 770,921 $ 8,395,737 $ 679,757 Foreign 282,953 188,042 372,063 126,840 240,397 54,873 Total $ 7,218,384 $ 967,790 $ 9,626,739 $ 897,761 $ 8,636,134 $ 734,630 The following table presents, for the periods indicated, our disaggregated net sales (in thousands) by business unit for each segment. 2023 2022 2021 Retail Deckorators $ 309,419 $ 326,011 $ 248,765 ProWood 2,494,362 3,152,950 3,013,620 UFP Edge 81,603 168,190 148,927 Other 1,131 3,488 7,025 Total Retail $ 2,886,515 $ 3,650,639 $ 3,418,337 Packaging (1) Structural Packaging $ 1,225,204 $ 1,716,021 $ 1,554,857 PalletOne 530,642 628,969 574,466 Protective Packaging 82,354 49,691 18,819 Total Packaging $ 1,838,200 $ 2,394,681 $ 2,148,142 Construction Factory Built $ 718,773 $ 1,181,837 $ 1,098,905 Site Built 977,129 1,361,607 1,190,393 Commercial 265,079 336,298 259,360 Concrete Forming 200,078 264,126 149,776 Total Construction $ 2,161,059 $ 3,143,868 $ 2,698,434 All Other $ 328,884 $ 431,611 $ 362,473 Corporate $ 3,726 $ 5,940 $ 8,748 Total Net Sales $ 7,218,384 $ 9,626,739 $ 8,636,134 (1) Effective January 1, 2023, the Packaging segment established new business units as follows: Structural Packaging, PalletOne, and Protective Packaging Solutions. This change resulted in the transfer of net sales from the these geographic business units to Structural Packaging, PalletOne and Protective Packaging in 2023. Product codes have been transferred within these three business units during 2023, and prior year figures have been updated to reflect the change for comparability purposes. The following table presents, for the periods indicated, our percentage of value-added and commodity-based sales to total net sales by segment. 2023 2022 2021 Value-Added Retail 50.5% 44.9% 43.2% Packaging 77.0% 72.0% 67.7% Construction 83.2% 77.2% 73.0% All Other 83.8% 76.3% 74.7% Corporate 27.5% 44.3% 67.9% Total 68.4% 63.4% 59.7% Commodity-Based Retail 49.5% 55.1% 56.8% Packaging 23.0% 28.0% 32.3% Construction 16.8% 22.8% 27.0% All Other 16.2% 23.7% 25.3% Corporate 72.5% 55.7% 32.1% Total 31.6% 36.6% 40.3% |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 30, 2023 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | N. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following table sets forth selected financial information for all of the quarters, consisting of 52 weeks during the year ended December 30, 2023 and 53 weeks during the year ended December 31, 2022, (in thousands, except per share data): First Second Third Fourth 2023 2022 2023 2022 2023 2022 2023 2022 Net sales $ 1,822,476 $ 2,489,313 $ 2,043,918 $ 2,900,874 $ 1,827,637 $ 2,322,855 $ 1,524,353 $ 1,913,697 Gross profit 358,329 478,363 400,067 503,452 364,400 450,176 296,142 357,470 Net earnings 125,578 193,131 150,788 207,853 134,183 172,101 103,908 131,879 Net earnings attributable to controlling interest 126,069 189,703 150,761 203,118 134,035 167,241 103,447 132,589 Basic earnings per share 2.01 3.01 2.40 3.24 2.14 2.68 1.65 2.12 Diluted earnings per share 1.98 3.00 2.36 3.23 2.10 2.66 1.62 2.10 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements, have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and with the rules and regulations of the Securities and Exchange Commission (the "SEC"), represent our assets and liabilities and operating results. The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships. All significant intercompany balances and transactions have been eliminated in consolidation. We consolidate entities in which we have a controlling financial interest. In determining whether we have a controlling financial interest in a partially owned entity and the requirement to consolidate the accounts of that entity, we consider factors such as ownership interest, board representation, management representation, authority to make decisions, and contractual and substantive participating rights of the partners/members as well as whether the entity is a variable interest entity (“VIE”) and whether we are the primary beneficiary. The primary beneficiary of a VIE is the entity that has (i) the power to direct the activities that most significantly impact the entity's economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE. The primary beneficiary is required to consolidate the VIE. We account for unconsolidated VIEs using the equity method of accounting. As a result of the investment in Dempsey on June 27, 2022, we own 50% of the issued equity of that entity, and the remaining 50% of the issued equity is owned by the previous owners (“Sellers”). The investment in Dempsey is an unconsolidated variable interest entity and we have accounted for it using the equity method of accounting because we do not have a controlling financial interest in the entity. Per the contracts, the Sellers have a put right to sell their equity interest to us for $50 million and we have a call right to purchase the Seller’s equity interest for $70 million, which are both first exercisable in June 2025 and expire in June 2030. As of December 30, 2023, the carrying value of our investment in Dempsey is $61.4 million and is recorded in Other Assets. Our maximum exposure to loss consists of our investment amount and any contingent loss that may occur in the future as a result of a change in the fair value of Dempsey relative to the strike price of the put option. |
NONCONTROLLING INTEREST IN SUBSIDIARIES | NONCONTROLLING INTEREST IN SUBSIDIARIES Noncontrolling interest in results of operations of consolidated subsidiaries represents the noncontrolling shareholders’ share of the income or loss of various consolidated subsidiaries. The noncontrolling interest reflects the original investment by these noncontrolling shareholders combined with their proportional share of the earnings or losses of these subsidiaries, net of distributions paid. |
FISCAL YEAR | FISCAL YEAR Our fiscal year is a 52 or 53 week period, ending on the last Saturday of December. Unless otherwise stated, references to 2023, 2022, and 2021 relate to the fiscal years ended December 30, 2023, December 31, 2022, and December 25, 2021, respectively. Fiscal year 2023 was comprised of 52 weeks, fiscal year 2022 was comprised of 53 weeks and fiscal year 2021 was comprised of 52 weeks. |
FAIR VALUE DISCLOSURES OF FINANCIAL INSTRUMENTS | FAIR VALUE DISCLOSURES OF FINANCIAL INSTRUMENTS We follow ASC Topic 820, Fair Value Measurements and Disclosures ● Level 1 — Financial instruments with unadjusted, quoted prices listed on active market exchanges. ● Level 2 — Financial instruments lacking unadjusted, quoted prices from active market exchanges, including over-the-counter traded financial instruments. Financial instrument values are determined using prices for recently traded financial instruments with similar underlying terms and direct or indirect observational inputs, such as interest rates and yield curves at commonly quoted intervals. ● Level 3 — Financial instruments not actively traded on a market exchange and there is little, if any, market activity. Values are determined using significant unobservable inputs or valuation techniques. Our investment portfolio includes restricted investments within our wholly-owned subsidiary, Ardellis Insurance Ltd. There are $24.8 million of restricted investments recorded as of December 30, 2023. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS Cash and cash equivalents consist of cash and highly liquid investments purchased with an original maturity of three months or less. |
INVESTMENTS | INVESTMENTS Investments are deemed to be "available for sale" and are, accordingly, carried at fair value being the quoted market value. |
ACCOUNTS RECEIVABLE AND ALLOWANCES | ACCOUNTS RECEIVABLE AND ALLOWANCES We perform periodic credit evaluations of our customers and generally do not require collateral. Accounts receivable are due under a range of terms we offer to our customers. Discounts are offered, in most instances, as an incentive for early payment. We base our allowances related to receivables on historical credit and collections experience, reasonable and supportable forecasts, and the specific identification of other potential problems, including the general economic climate. Actual collections can differ, requiring adjustments to the allowances. Individual accounts receivable balances are evaluated on a monthly basis, and those balances considered uncollectible are charged to the allowance. The following table presents the activity in our accounts receivable allowances (in thousands): Additions Charged to Beginning Costs and Ending Balance Expenses Deductions* Balance Year Ended December 30, 2023: Allowance for possible losses on accounts receivable $ 11,727 $ 56,522 $ (63,116) $ 5,133 Year Ended December 31, 2022: Allowance for possible losses on accounts receivable $ 5,085 $ 79,862 $ (73,220) $ 11,727 Year Ended December 25, 2021: Allowance for possible losses on accounts receivable $ 4,629 $ 66,883 $ (66,427) $ 5,085 * Includes accounts charged off, discounts given to customers and actual customer returns and allowances. We record estimated sales returns, discounts, and other applicable adjustments as a reduction of net sales in the same period revenue is recognized. Accounts receivable retainage amounts related to long term construction contracts totaled $8.2 million and $8.0 million as of December 30, 2023 and December 31, 2022, respectively. All amounts are expected to be collected within 18 months. Concentration of accounts receivable related to our two largest customers totaled $118.0 million and $131.0 million as of December 30, 2023 and December 31, 2022, respectively. |
RECENTLY ISSUED ACCOUNTING GUIDANCE | RECENTLY ISSUED ACCOUNTING GUIDANCE In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures," which is intended to enhance the transparency, decision usefulness and effectiveness of income tax disclosures. The amendments in this ASU require a public entity to disclose a tabular tax rate reconciliation, using both percentages and currency, with specific categories. A public entity is also required to provide a qualitative description of the states and local jurisdictions that make up the majority of the effect of the state and local income tax category and the net amount of income taxes paid, disaggregated by federal, state and foreign taxes and also disaggregated by individual jurisdictions. The amendments also remove certain disclosures that are no longer considered cost beneficial. The amendments are effective prospectively for annual periods beginning after December 15, 2024, and early adoption and retrospective application are permitted. Although the ASU only modifies our required income tax disclosures, we are currently evaluating the impact of adopting this guidance on the consolidated financial statements. In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses, allowing financial statement users to better understand the components of a segment's profit or loss to assess potential future cash flows for each reportable segment and the entity as a whole. The amendments expand a public entity's segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker ("CODM"), clarifying when an entity may report one or more additional measures to assess segment performance, requiring enhanced interim disclosures, providing new disclosure requirements for entities with a single reportable segment, and requiring other new disclosures. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. Although the ASU only requires additional disclosures about the Company's operating segments, we are currently evaluating the impact of adopting this guidance on the consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The ASU requires that an acquirer recognize and measure contract assets and contract liabilities in a business combination in accordance with Topic 606. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and has been applied prospectively to all business combinations occurring after this date. |
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost or net realizable value. The cost of inventories includes raw materials, direct labor, and manufacturing overhead and is determined using the weighted average cost method. Raw materials consist primarily of unfinished wood products and other materials expected to be manufactured or treated prior to sale, while finished goods represent various manufactured and treated wood products ready for sale. We have inventory on consignment at customer locations valued at $23.2 million as of December 30, 2023 and $27.9 million as of December 31, 2022. We write down the value of inventory, the impact of which is reflected in cost of goods sold in the Consolidated Statement of Earnings and Comprehensive Income, if the cost of specific inventory items on hand exceeds the amount we expect to realize from the ultimate sale or disposal of the inventory. These estimates are based on management's judgment regarding future demand and market conditions and analysis of historical experience. |
PROPERTY, PLANT, AND EQUIPMENT | PROPERTY, PLANT, AND EQUIPMENT Property, plant, and equipment are stated at cost. Expenditures for renewals and betterments are capitalized, and maintenance and repairs are expensed as incurred. The components of property, plant and equipment as of December 30, 2023 and December 31, 2022 were as follows: Year Ended December 30, December 31, 2023 2022 Land and improvements $ 185,188 $ 171,729 Building and improvements 400,232 355,228 Machinery and equipment 884,880 708,095 Furniture and fixtures 26,275 23,186 Construction in progress 62,729 121,730 Total Property, Plant and Equipment, Gross $ 1,559,304 $ 1,379,968 Amortization of assets held under finance leases is included in depreciation and amortized over the shorter of the estimated useful life of the asset or the lease term. Depreciation is computed principally by the straight-line method over the estimated useful lives of the assets as follows: Land improvements 5 to 15 years Buildings and improvements 10 to 32 years Machinery, equipment and office furniture 2 to 20 years |
LONG-LIVED ASSETS | LONG-LIVED ASSETS In accordance with ASC 360, Property, Plant, and Equipment |
GOODWILL | GOODWILL Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets of acquired businesses. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are subject to impairment tests at least annually in accordance with ASC 350, Intangibles-Goodwill and Other. We review the carrying amounts of goodwill and other non-amortizable intangibles by reporting unit to determine if such assets may be impaired. As of the date of the most recent goodwill impairment test, which utilized data and assumptions as of September 30, 2023, it was determined that the fair values exceed the carrying values and there were no indicators for impairment for all of our reporting units. In the fourth quarter of 2022, we recorded a non-cash goodwill impairment charge of $2.5 million related to the Italian reporting unit within our all other segment. Subsequently, the Italian reporting unit was divested in 2023. We believe we have sufficient available information, both current and historical, to support our assumptions, judgments and estimates used in the goodwill impairment test. Our annual testing date for evaluating goodwill and indefinite-lived intangible asset impairment is the first day of our fourth fiscal quarter for all reporting units. Additionally, we review various triggering events throughout the year to determine whether a mid-year impairment analysis is required. |
FOREIGN CURRENCY | FOREIGN CURRENCY Our foreign operations use the local currency as their functional currency. Accordingly, assets and liabilities are translated at exchange rates as of the balance sheet date and revenues and expenses are translated using weighted average rates, with translation adjustments included as a separate component of shareholders’ equity. Gains and losses arising from re-measuring foreign currency transactions are included in earnings. |
INSURANCE RESERVES | INSURANCE RESERVES Our wholly-owned insurance company, Ardellis Insurance Ltd.(“Ardellis”), was incorporated on April 21, 2001 under the laws of Bermuda and is licensed as a Class 3A insurer under the Insurance Act 1978 of Bermuda. On April 14, 2017 the U.S. Branch of Ardellis Insurance Ltd. was granted its Certificate of Authority to transact property and casualty insurance lines as an admitted carrier in the State of Michigan. We are primarily self-insured for certain employee health benefits, and have self-funded retentions for general liability, automobile liability, property and workers’ compensation. We are fully self-insured for environmental liabilities. The general liability, automobile liability, property, workers’ compensation, and certain environmental liabilities are managed through Ardellis; the related assets and liabilities of which are included in the consolidated financial statements as of December 30, 2023 and December 31, 2022. Our policy is to accrue amounts equal to actuarially determined or internally computed liabilities. The actuarial and internal valuations are based on historical information along with certain assumptions about future events. Changes in assumptions for such matters as legal actions, medical cost trends, and changes in claims experience could cause these estimates to change in the future. In addition to providing coverage for the Company, Ardellis provides Excess Loss Insurance (primarily medical and prescription drug) and Excess General Liability and Property Insurance to certain third parties. As of December 30, 2023, Ardellis had 207 such contracts in place. Reserves associated with these contracts were $7.5 million at December 30, 2023, and $5.0 million at December 31, 2022, and are accrued based on third party actuarial valuations of the expected future liabilities. |
INCOME TAXES | INCOME TAXES Deferred income tax assets and liabilities are computed for differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future. Such deferred income tax asset and liability computations are based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred income tax assets to the amounts expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred income tax assets and liabilities. |
REVENUE RECOGNITION | REVENUE RECOGNITION Within the three primary segments (Retail, Packaging, 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 third party. Installation revenue is recognized upon completion. If we use a third party for installation, the party will act as an agent to us until completion of the installation. Installation revenue represents an immaterial share of our total net sales. We utilize 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 relative 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 relative 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 net sales disaggregated by revenue source (in thousands): Year Ended December 30, December 31, December 25, 2023 vs. 2022 2022 vs. 2021 2023 2022 2021 % Change % Change Point in Time Revenue $ 7,069,690 $ 9,442,794 $ 8,512,012 (25.1)% 10.9% Over Time Revenue 148,694 183,945 124,122 (19.2)% 48.2% Total Net Sales $ 7,218,384 $ 9,626,739 $ 8,636,134 (25.0)% 11.5% 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 on December 30, 2023 and December 31, 2022 which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands): December 30, December 31, 2023 2022 Cost and Earnings in Excess of Billings $ 3,572 $ 6,798 Billings in Excess of Cost and Earnings 9,487 10,184 SHIPPING AND HANDLING OF PRODUCT Shipping and handling costs that are charged to and reimbursed by the customer are recognized as revenue. Costs incurred related to the shipment and handling of products are classified in cost of goods sold. |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION We account for share-based awards in accordance with ASC Topic 718, Compensation – Stock Compensation |
EARNINGS PER SHARE | EARNINGS PER SHARE Earnings per share (“EPS”) is computed using the two-class method. The two-class method determines EPS for each class of common stock and participating securities according to dividends and their respective participation rights in undistributed earnings. Participating securities include non-vested shares of restricted stock in which the participants have non-forfeitable rights to dividends during the performance period. EPS, basic and diluted, is calculated by dividing net earnings attributable to controlling interest, net of applicable taxes, by the weighted average number of shares of common stock outstanding for the period. The computation of EPS is as follows (in thousands): December 30, December 31, December 25, 2023 2022 2021 Numerator: Net earnings attributable to controlling interest $ 514,312 $ 692,651 $ 535,640 Adjustment for earnings allocated to non-vested restricted common stock equivalents (25,139) (27,488) (17,342) Net earnings for calculating EPS $ 489,173 $ 665,163 $ 518,298 Denominator: Weighted average shares outstanding 62,683 62,667 62,209 Adjustment for non-vested restricted common stock equivalents (3,064) (2,487) (2,014) Shares for calculating basic EPS 59,619 60,180 60,195 Effect of dilutive restricted common stock equivalents 1,020 473 159 Shares for calculating diluted EPS 60,639 60,653 60,354 Net earnings per share: Basic $ 8.21 $ 11.05 $ 8.61 Diluted $ 8.07 $ 10.97 $ 8.59 |
USE OF ACCOUNTING ESTIMATES | USE OF ACCOUNTING ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. We believe our estimates to be reasonable; however, actual results could differ from these estimates. |
SEGMENT REPORTING | ASC 280, Segment Reporting (“ASC 280”), defines operating segments as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. We operate manufacturing, treating and distribution facilities internationally, but primarily in the United States. Our business segments consist of UFP Retail Solutions, UFP Packaging 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, Packaging, and Construction segments. In the case of locations which serve multiple segments, results are allocated and accounted for by segment. Two customers, The Home Depot and Lowes, accounted for approximately 17% and 12%, respectively, of our total net sales in fiscal 2023, 15% and 11%, respectively, of our total net sales in fiscal 2022 and 16% and 10%, respectively, in 2021. The exception to this market-centered reporting and management structure is our International segment, which comprises our Mexico, Canada, Europe, Asia, 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. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Accounts Receivable Allowances | The following table presents the activity in our accounts receivable allowances (in thousands): Additions Charged to Beginning Costs and Ending Balance Expenses Deductions* Balance Year Ended December 30, 2023: Allowance for possible losses on accounts receivable $ 11,727 $ 56,522 $ (63,116) $ 5,133 Year Ended December 31, 2022: Allowance for possible losses on accounts receivable $ 5,085 $ 79,862 $ (73,220) $ 11,727 Year Ended December 25, 2021: Allowance for possible losses on accounts receivable $ 4,629 $ 66,883 $ (66,427) $ 5,085 * Includes accounts charged off, discounts given to customers and actual customer returns and allowances. |
Schedule of Components of Property, Plant and Equipment | Year Ended December 30, December 31, 2023 2022 Land and improvements $ 185,188 $ 171,729 Building and improvements 400,232 355,228 Machinery and equipment 884,880 708,095 Furniture and fixtures 26,275 23,186 Construction in progress 62,729 121,730 Total Property, Plant and Equipment, Gross $ 1,559,304 $ 1,379,968 |
Schedule of Estimated Useful Lives of Property, Plant, and Equipment | Land improvements 5 to 15 years Buildings and improvements 10 to 32 years Machinery, equipment and office furniture 2 to 20 years |
Schedule of Disaggregation of revenue | The following table presents our net sales disaggregated by revenue source (in thousands): Year Ended December 30, December 31, December 25, 2023 vs. 2022 2022 vs. 2021 2023 2022 2021 % Change % Change Point in Time Revenue $ 7,069,690 $ 9,442,794 $ 8,512,012 (25.1)% 10.9% Over Time Revenue 148,694 183,945 124,122 (19.2)% 48.2% Total Net Sales $ 7,218,384 $ 9,626,739 $ 8,636,134 (25.0)% 11.5% |
Schedule of Percentage of Completion Account Balances | The following table presents the balances of over time accounting accounts on December 30, 2023 and December 31, 2022 which are included in “Other current assets” and “Accrued liabilities: Other”, respectively (in thousands): December 30, December 31, 2023 2022 Cost and Earnings in Excess of Billings $ 3,572 $ 6,798 Billings in Excess of Cost and Earnings 9,487 10,184 |
Schedule of Computation of earnings per share | The computation of EPS is as follows (in thousands): December 30, December 31, December 25, 2023 2022 2021 Numerator: Net earnings attributable to controlling interest $ 514,312 $ 692,651 $ 535,640 Adjustment for earnings allocated to non-vested restricted common stock equivalents (25,139) (27,488) (17,342) Net earnings for calculating EPS $ 489,173 $ 665,163 $ 518,298 Denominator: Weighted average shares outstanding 62,683 62,667 62,209 Adjustment for non-vested restricted common stock equivalents (3,064) (2,487) (2,014) Shares for calculating basic EPS 59,619 60,180 60,195 Effect of dilutive restricted common stock equivalents 1,020 473 159 Shares for calculating diluted EPS 60,639 60,653 60,354 Net earnings per share: Basic $ 8.21 $ 11.05 $ 8.61 Diluted $ 8.07 $ 10.97 $ 8.59 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
FAIR VALUE | |
Assets measured at fair value | December 30, 2023 December 31, 2022 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 (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Money market funds $ 492,800 $ 6,133 $ — $ 498,933 $ 390,219 $ 1,286 $ — $ 391,505 Fixed income funds 5,112 18,976 — 24,088 2,594 16,692 — 19,286 Treasury securities 344 — — 344 343 — — 343 Equity securities 16,411 — 10,500 26,911 17,337 — — 17,337 Alternative investments — — 4,052 4,052 — — 4,102 4,102 Mutual funds: Domestic stock funds 13,330 — — 13,330 13,067 — — 13,067 International stock funds 509 — — 509 1,414 — — 1,414 Target funds 9 — — 9 8 — — 8 Bond funds 5 — — 5 130 — — 130 Alternative funds 474 — — 474 474 — — 474 Total mutual funds 14,327 — — 14,327 15,093 — — 15,093 Total $ 528,994 $ 25,109 $ 14,552 $ 568,655 $ 425,586 $ 17,978 $ 4,102 $ 447,666 |
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): December 30, 2023 December 31, 2022 Unrealized Unrealized Cost Gain (Loss) Fair Value Cost Gain (Loss) Fair Value Fixed income $ 25,514 $ (1,426) $ 24,088 $ 21,399 $ (2,113) $ 19,286 Treasury securities 344 — 344 343 — 343 Equity 13,523 2,888 16,411 15,762 1,575 17,337 Mutual funds 12,348 1,934 14,282 13,430 1,144 14,574 Alternative investments 3,211 841 4,052 3,105 997 4,102 Total $ 54,940 $ 4,237 $ 59,177 $ 54,039 $ 1,603 $ 55,642 |
BUSINESS COMBINATIONS AND EQU_2
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS | |
Business Acquisitions Accounted for Using Purchase Method | We completed the following business combinations in fiscal 2023 and 2022, which were accounted for using the purchase or equity method (in thousands). Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment September 20, 2023 $52,841 $ 43,785 $ 9,056 International UFP Palets y Embalajes SL (UFP Palets) Headquartered in Castellón, Spain, UFP Palets (formerly known as Palets Suller Group) is the market leader in machine-built wood pallets, serving the region's large ceramic tile industry. The company had trailing 12-month sales of approximately $38 million through August 2023. December 6, 2022 $70,942 $ 48,745 $ 22,197 Packaging Titan Corrugated, Inc. (Titan) and All Boxed Up, LLC (ABU) Located in Flower Mound, TX and founded in 2003, Titan’s primary products include boxes used in moving and storage, jumbo boxes for industrial products, corrugated shipping containers, and point-of-purchase displays. ABU distributes common box sizes manufactured by Titan throughout the United States. The combined companies had trailing 12-month sales through October 2022 of approximately $46.5 million. June 27, 2022 $69,791 $ 34,552 $ 35,239 Packaging Dempsey Wood Products, Inc. (Dempsey) Located in Orangeburg, South Carolina and founded in 1988, Dempsey is a sawmill which produces products such as kiln dried finished lumber, industrial lumber, green cut stock lumber, pine chips and shavings, landscaping mulch, and sawdust. The Company had sales of approximately $69 million in 2021. May 9, 2022 $15,398 $ 4,821 $ 10,577 Retail Cedar Poly, LLC Located in Tipton, Iowa, Cedar Poly is a full-service recycler of high-density and low-density polyethylene (HDPE and LDPE) flakes and pellets used in various products, including composite decking. The company also recycles corrugate and operates its own transportation fleet. Cedar Poly had 2021 sales of approximately $17.3 million and operates in UFP’s Deckorators business unit. December 27, 2021 $24,057 $ 20,390 $ 5,667 Retail Ultra Aluminum Manufacturing, Inc. (Ultra) Located in Howell, Michigan and founded in 1996, Ultra is a leading manufacturer of aluminum fencing, gates and railing. The company designs and produces an extensive selection of ornamental aluminum fence and railing products for contractors, landscapers, fence dealers and wholesalers. The Company had sales of approximately $45 million in 2021. |
Acquired Intangible Assets | The amounts assigned to major intangible classes for the business combinations mentioned above are as follows (in thousands): Non- Intangibles - Compete Customer Tax Agreements Technology Patents Relationships Tradename Goodwill Deductible UFP Palets $ — $ — $ — $ 36,708 * $ — $ 7,077 * $ 43,785 All Boxed Up — 393 — 864 29 628 1,914 Titan — 9,607 — 21,136 721 15,367 46,831 Cedar Poly 390 — — 2,490 500 1,441 4,821 Ultra — — — 6,820 5,020 8,550 20,390 *(estimate) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of Goodwill by Segment | The changes in the net carrying amount of goodwill by reporting segment for the years ended December 30, 2023 and December 31, 2022, are as follows (in thousands): Retail Packaging Construction All Other Corporate Total Balance as of December 25, 2021 $ 73,376 $ 128,541 $ 89,000 $ 24,121 $ — $ 315,038 2022 Acquisitions 10,971 23,862 — — — 34,833 2022 Purchase Accounting Adjustments 293 (3,494) (1,074) (4,766) — (9,041) 2022 Impairments — — — (2,480) — (2,480) Foreign Exchange, Net — — (256) (774) — (1,030) Balance as of December 31, 2022 $ 84,640 $ 148,909 $ 87,670 $ 16,101 $ — $ 337,320 2023 Acquisitions — — — 7,077 — 7,077 2023 Purchase Accounting Adjustments (979) (7,867) — — — (8,846) Foreign Exchange, Net — — 135 627 — 762 Balance as of December 30, 2023 $ 83,661 $ 141,042 $ 87,805 $ 23,805 $ — $ 336,313 |
Other Intangible Assets | The following amounts were included in other amortizable intangible assets, net as of December 30, 2023 and December 31, 2022 (in thousands): 2023 2022 Accumulated Accumulated Assets Amortization Net Value Assets Amortization Net Value Non-compete agreements $ 9,886 $ (5,966) $ 3,920 $ 12,577 $ (7,109) $ 5,468 Customer relationships and other 171,029 (43,403) 127,626 139,112 (34,646) 104,466 Licensing agreements — — — 4,589 (4,589) — Patents 1,622 (898) 724 1,976 (1,104) 872 Technology 12,600 (2,173) 10,427 2,600 (875) 1,725 Tradename 39,831 (12,320) 27,511 38,826 (8,393) 30,433 Software 7,666 (2,679) 4,987 1,788 (860) 928 Total $ 242,634 $ (67,439) $ 175,195 $ 201,468 $ (57,576) $ 143,892 |
Estimated Useful Lives of Intangible Assets | Weighted Average Intangible Asset Type Estimated Useful Life Amortization Period Non-compete agreements 2 to 15 years 7.5 years Customer relationships and other 5 to 15 years 10.4 years Licensing agreements 10 years 10 years Patents 10 years 10 years Technology 5 to 12 years 9.5 years Tradename (amortizable) 5 to 25 years 10.9 years Software 3 to 5 years 3 years |
Expected Amortization Expense | Amortization expense of intangibles totaled $21.3 million, $19.5 million and $13.9 million in 2023, 2022 and 2021, respectively. The estimated amortization expense for intangibles for each of the five succeeding fiscal years is as follows (in thousands): 2024 $ 23,580 2025 22,998 2026 20,520 2027 18,636 2028 18,021 Thereafter 71,440 Total $ 175,195 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
DEBT | |
Long-term Debt and Capital Lease Obligations | Long-term debt obligations are summarized as follows on December 30, 2023 and December 31, 2022 (amounts in thousands): 2023 2022 Series 2020 Senior Notes E, due on August 10, 2032, interest payable semi-annually at 3.04% $ 50,000 $ 50,000 Series 2020 Senior Notes F, due on August 10, 2033, interest payable semi-annually at 3.08% 50,000 50,000 Series 2020 Senior Notes G, due on August 10, 2035, interest payable semi-annually at 3.15% 50,000 50,000 Series 2018 Senior Notes C, due on June 14, 2028, interest payable semi-annually at 4.20% 40,000 40,000 Series 2018 Senior Notes D, due on June 14, 2030, interest payable semi-annually at 4.27% 35,000 35,000 Series 2012 Senior Notes Tranche B, due on December 17, 2024, interest payable semi-annually at 3.98% 40,000 40,000 Foreign subsidiary borrowings under revolving credit facility, due on December 6, 2027, interest payable monthly at a floating rate (5.44% on December 30, 2023 and 4.13% on December 31, 2022) 3,692 5,465 Series 1999 Industrial Development Revenue Bonds, due on August 1, 2029, interest payable monthly at a floating rate (3.33% on December 30, 2023 and 1.04% on December 31, 2022) 3,300 3,300 Finance leases and foreign affiliate debt 4,592 4,565 276,584 278,330 Less current portion (42,900) (2,942) Less debt issuance costs (150) (234) Long-term portion $ 233,534 $ 275,154 |
Principal Maturities of Long-term Debt and Capital Lease Obligations | On December 30, 2023, the principal maturities of long-term debt and finance lease obligations are as follows (in thousands): 2024 $ 42,823 2025 640 2026 186 2027 3,896 2028 40,223 Thereafter 188,666 Total $ 276,434 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
LEASES | |
Schedule of lease costs | Lease costs under non-cancelable operating leases on December 30, 2023 and December 31, 2022 are as follows (in thousands): 2023 2022 Operating lease cost $ 33,829 $ 32,458 Short-term lease cost 9,525 10,490 Variable lease cost 6,332 5,291 Sublease income (2,267) (2,876) Total lease cost $ 47,419 $ 45,363 |
Future Minimum Lease Payments | Future minimum payments under non-cancelable operating leases on December 30, 2023 are as follows (in thousands): Operating Leases 2024 $ 32,796 2025 29,435 2026 27,104 2027 17,998 2028 13,517 Thereafter 31,686 Total minimum lease payments $ 152,536 Less present value discount (44,674) Total lease liability $ 107,862 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
COMMON STOCK | |
Schedule of common stock issuances | Below is a summary of common stock issuances for 2023 and 2022 (in thousands, except per share data): December 30, 2023 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 33 $ 98.20 Shares issued under the employee stock gift program 2 95.42 Shares issued under the director compensation plan 3 92.82 Shares issued under the LTSIP 756 86.14 Shares issued under the executive stock match plan 75 85.89 Forfeitures (15) Total shares issued under stock grant programs 821 $ 86.16 Shares issued under the deferred compensation plans 124 $ 88.43 December 31, 2022 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 44 $ 73.45 Shares issued under the employee stock gift program 2 78.23 Shares issued under the director retainer stock program 4 79.98 Shares issued under the LTSIP 755 82.73 Shares issued under the executive stock grants plan 62 82.87 Forfeitures (17) Total shares issued under stock grant programs 806 $ 82.71 Shares issued under the deferred compensation plans 113 $ 81.86 |
Nonvested Restricted Shares Activity | Weighted- Unrecognized Average Weighted- Compensation Period to Restricted Average Grant Expense Recognize Awards Date Fair Value (in millions) Expense Nonvested at December 26, 2020 1,363,794 $ 35.14 $ 6.3 0.62 years Granted 560,516 60.24 Vested (274,271) 26.50 Forfeited (23,007) 39.68 Nonvested at December 25, 2021 1,627,032 $ 45.23 $ 6.6 0.43 years Granted 815,874 79.97 Vested (286,661) 34.00 Forfeited (17,990) 54.07 Nonvested at December 31, 2022 2,138,255 $ 58.70 $ 51.4 3.74 years Granted 830,346 86.11 Vested (233,763) 40.50 Forfeited (14,001) 63.54 Nonvested at December 30, 2023 2,720,837 $ 68.61 $ 76.9 3.68 years |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
INCOME TAXES | |
Components of Income Tax Expense (Benefit) | Income tax provisions for the years ended December 30, 2023, December 31, 2022, and December 25, 2021 are summarized as follows (in thousands): 2023 2022 2021 Currently Payable: Federal $ 123,257 $ 181,029 $ 115,077 State and local 28,580 44,646 30,441 Foreign 10,808 17,336 21,095 162,645 243,011 166,613 Net Deferred: Federal (2,249) (8,561) 6,242 State and local (3,223) (3,657) 118 Foreign (389) (941) 999 (5,861) (13,159) 7,359 Total income tax expense $ 156,784 $ 229,852 $ 173,972 |
Components of Earnings Before Income Taxes | 2023 2022 2021 U.S. $ 633,816 $ 876,071 $ 645,316 Foreign 37,425 58,745 81,020 Total $ 671,241 $ 934,816 $ 726,336 |
Effective Income Tax Rate Reconciliation | 2023 2022 2021 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % State and local taxes (net of federal benefits) 3.6 3.4 3.3 Tax credits, including foreign tax credit (0.9) (0.8) (0.6) Change in uncertain tax positions reserve 0.2 (0.1) (0.1) Other permanent differences 0.2 0.1 (0.4) Other, net (0.7) 1.0 0.7 Effective income tax rate 23.4 % 24.6 % 23.9 % |
Components of Deferred Tax Assets and Liabilities | Temporary differences which give rise to deferred income tax assets and (liabilities) on December 30, 2023 and December 31, 2022 are as follows (in thousands): 2023 2022 Employee benefits $ 45,661 $ 37,893 Lease liability 27,918 28,746 Net operating loss carryforwards 7,881 6,891 Foreign subsidiary capital loss carryforward 935 500 Other tax credits 31 102 Inventory 2,397 3,732 Reserves on receivables 2,203 3,273 Accrued expenses 3,373 6,791 Capitalized research and development costs 28,021 11,080 Gross deferred income tax assets 118,420 99,008 Valuation allowance (6,014) (4,618) Deferred income tax assets 112,406 94,390 Depreciation (82,617) (69,711) Intangibles (43,455) (43,643) Right of use assets (26,870) (27,849) Other, net (484) (702) Deferred income tax liabilities (153,426) (141,905) Net deferred income tax liability $ (41,020) $ (47,515) |
Schedule of NOL and credit carryforwards | Net Operating Losses Tax Credits U.S. State Foreign U.S. State 2024 - 2028 $ — $ 27 $ 206 $ — $ — 2029 - 2033 — 396 1,268 — — 2034 - 2038 — 1,618 1,656 — 31 2039 - 2043 208 1,373 — — — Thereafter — — 570 — — Total $ 208 $ 3,414 $ 3,700 $ — $ 31 |
ACCOUNTING FOR UNCERTAINTY IN_2
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES | |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): 2023 2022 2021 Gross unrecognized tax benefits beginning of year $ 3,217 $ 3,603 $ 3,892 (Decrease) increase in tax positions for prior years 943 (216) 437 Increase in tax positions for current year 1,286 764 839 Lapse in statute of limitations (675) (934) (1,565) Gross unrecognized tax benefits end of year $ 4,771 $ 3,217 $ 3,603 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
SEGMENT REPORTING | |
Segment Reporting | The tables below are presented in thousands: 2023 All Retail Packaging Construction Other Corporate Total Net sales to outside customers $ 2,886,515 $ 1,838,200 $ 2,161,059 $ 328,884 $ 3,726 $ 7,218,384 Intersegment net sales 565,325 83,549 96,729 268,210 (1,013,813) — Interest expense (1) 111 7 — (3,020) 15,744 12,842 Amortization expense 4,566 8,849 2,904 3,488 1,520 21,327 Depreciation expense 23,943 32,996 19,546 3,994 30,084 110,563 Segment earnings before income taxes 167,955 193,563 243,357 37,573 28,793 671,241 Segment assets 781,005 798,623 621,762 364,274 1,452,133 4,017,797 Capital expenditures 52,756 52,694 56,793 1,432 16,707 180,382 2022 All Retail Packaging Construction Other Corporate Total Net sales to outside customers $ 3,650,639 $ 2,394,681 $ 3,143,868 $ 431,611 $ 5,940 $ 9,626,739 Intersegment net sales 392,740 78,409 110,523 421,406 (1,003,078) — Interest expense (1) 177 (2) — (1,310) 15,045 13,910 Amortization expense 4,131 6,925 3,358 4,571 514 19,499 Depreciation expense 19,898 28,191 15,364 2,992 27,618 94,063 Segment earnings before income taxes 150,165 333,087 397,446 56,813 (2,695) 934,816 Segment assets 889,417 885,878 712,837 308,688 875,253 3,672,073 Capital expenditures 55,806 55,129 54,167 3,968 5,054 174,124 2021 All Retail Packaging Construction Other Corporate Total Net sales to outside customers $ 3,418,337 $ 2,148,142 $ 2,698,434 $ 362,473 $ 8,748 $ 8,636,134 Intersegment net sales 214,400 85,954 82,026 455,874 (838,254) — Interest expense (1) 98 12 1 184 13,519 13,814 Amortization expense 2,780 6,093 3,525 1,336 214 13,948 Depreciation expense 16,955 26,219 13,151 2,094 25,765 84,184 Segment earnings before income taxes 124,790 264,958 264,238 80,905 (8,555) 726,336 Segment assets 844,189 741,672 736,157 343,363 579,890 3,245,271 Capital expenditures 40,408 42,652 22,344 5,140 40,622 151,166 (1) |
Information Regarding Principal Geographic Areas | Information regarding principal geographic areas was as follows (in thousands): 2023 2022 2021 Long-Lived Long-Lived Long-Lived Tangible Tangible Tangible Net Sales Assets Net Sales Assets Net Sales Assets United States $ 6,935,431 $ 779,748 $ 9,254,676 $ 770,921 $ 8,395,737 $ 679,757 Foreign 282,953 188,042 372,063 126,840 240,397 54,873 Total $ 7,218,384 $ 967,790 $ 9,626,739 $ 897,761 $ 8,636,134 $ 734,630 |
Percentage of Value-added and Commodity-based Sales to Total Sales | 2023 2022 2021 Value-Added Retail 50.5% 44.9% 43.2% Packaging 77.0% 72.0% 67.7% Construction 83.2% 77.2% 73.0% All Other 83.8% 76.3% 74.7% Corporate 27.5% 44.3% 67.9% Total 68.4% 63.4% 59.7% Commodity-Based Retail 49.5% 55.1% 56.8% Packaging 23.0% 28.0% 32.3% Construction 16.8% 22.8% 27.0% All Other 16.2% 23.7% 25.3% Corporate 72.5% 55.7% 32.1% Total 31.6% 36.6% 40.3% |
Gross Sales by Major Product Classification | The following table presents, for the periods indicated, our disaggregated net sales (in thousands) by business unit for each segment. 2023 2022 2021 Retail Deckorators $ 309,419 $ 326,011 $ 248,765 ProWood 2,494,362 3,152,950 3,013,620 UFP Edge 81,603 168,190 148,927 Other 1,131 3,488 7,025 Total Retail $ 2,886,515 $ 3,650,639 $ 3,418,337 Packaging (1) Structural Packaging $ 1,225,204 $ 1,716,021 $ 1,554,857 PalletOne 530,642 628,969 574,466 Protective Packaging 82,354 49,691 18,819 Total Packaging $ 1,838,200 $ 2,394,681 $ 2,148,142 Construction Factory Built $ 718,773 $ 1,181,837 $ 1,098,905 Site Built 977,129 1,361,607 1,190,393 Commercial 265,079 336,298 259,360 Concrete Forming 200,078 264,126 149,776 Total Construction $ 2,161,059 $ 3,143,868 $ 2,698,434 All Other $ 328,884 $ 431,611 $ 362,473 Corporate $ 3,726 $ 5,940 $ 8,748 Total Net Sales $ 7,218,384 $ 9,626,739 $ 8,636,134 (1) Effective January 1, 2023, the Packaging segment established new business units as follows: Structural Packaging, PalletOne, and Protective Packaging Solutions. This change resulted in the transfer of net sales from the these geographic business units to Structural Packaging, PalletOne and Protective Packaging in 2023. Product codes have been transferred within these three business units during 2023, and prior year figures have been updated to reflect the change for comparability purposes. |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 30, 2023 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |
Quarterly Financial Information | The following table sets forth selected financial information for all of the quarters, consisting of 52 weeks during the year ended December 30, 2023 and 53 weeks during the year ended December 31, 2022, (in thousands, except per share data): First Second Third Fourth 2023 2022 2023 2022 2023 2022 2023 2022 Net sales $ 1,822,476 $ 2,489,313 $ 2,043,918 $ 2,900,874 $ 1,827,637 $ 2,322,855 $ 1,524,353 $ 1,913,697 Gross profit 358,329 478,363 400,067 503,452 364,400 450,176 296,142 357,470 Net earnings 125,578 193,131 150,788 207,853 134,183 172,101 103,908 131,879 Net earnings attributable to controlling interest 126,069 189,703 150,761 203,118 134,035 167,241 103,447 132,589 Basic earnings per share 2.01 3.01 2.40 3.24 2.14 2.68 1.65 2.12 Diluted earnings per share 1.98 3.00 2.36 3.23 2.10 2.66 1.62 2.10 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 30, 2023 USD ($) item contract customer | Dec. 31, 2022 USD ($) | Dec. 25, 2021 | |
Summary of significant accounting policies | ||||
Number of markets | item | 3 | |||
Length of fiscal year | 364 days | 371 days | 364 days | |
Restricted investments | $ 24,800 | |||
Accounts receivable retainage | $ 8,000 | $ 8,200 | $ 8,000 | |
Accounts receivable retainage, collection period | 18 months | |||
Inventory on consignment | 27,900 | $ 23,200 | 27,900 | |
Number of insurance contracts with third party by Ardellis | contract | 207 | |||
Reserve associated with contracts to third party by Ardellis | 5,000 | $ 7,500 | 5,000 | |
Goodwill | ||||
Goodwill impairment | 2,480 | |||
New accounting pronouncement | ||||
Retained earnings | 2,217,410 | 2,582,332 | 2,217,410 | |
Right-of-use assets | 107,517 | 103,774 | 107,517 | |
Operating lease liability | $ 107,862 | |||
Construction | Commercial | ||||
Goodwill | ||||
Goodwill impairment | 2,500 | |||
Accounts receivables | Customer Concentration | Top two customers | ||||
Summary of significant accounting policies | ||||
Top two customers | customer | 2 | |||
Concentration of accounts receivable related to largest customers | $ 131,000 | $ 118,000 | $ 131,000 | |
Minimum | ||||
Summary of significant accounting policies | ||||
Length of fiscal year | 364 days | |||
Maximum | ||||
Summary of significant accounting policies | ||||
Length of fiscal year | 371 days |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Equity Method Investments (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Sep. 20, 2023 | Jun. 27, 2022 |
Dempsey Wood Products, LLC | |||
Summary of significant accounting policies | |||
Ownership interest | 50% | ||
UFP Palets | |||
Summary of significant accounting policies | |||
Ownership interest | 80% | ||
Dempsey Wood Products, LLC | |||
Summary of significant accounting policies | |||
Call right | $ 70 | ||
Carrying value | $ 61.4 | ||
Sellers | Dempsey Wood Products, LLC | |||
Summary of significant accounting policies | |||
Ownership interest | 50% | ||
Sellers | UFP Palets | |||
Summary of significant accounting policies | |||
Ownership interest | 20% | ||
Sellers | Dempsey Wood Products, LLC | |||
Summary of significant accounting policies | |||
Sellers put right | $ 50 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accounts Receivable Allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ 11,727 | $ 5,085 | $ 4,629 |
Additions Charged to Costs and Expenses | 56,522 | 79,862 | 66,883 |
Deductions | (63,116) | (73,220) | (66,427) |
Ending Balance | $ 5,133 | $ 11,727 | $ 5,085 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of components of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Land and improvements | $ 185,188 | $ 171,729 |
Building and improvements | 400,232 | 355,228 |
Machinery and equipment | 884,880 | 708,095 |
Furniture and fixtures | 26,275 | 23,186 |
Construction in progress | 62,729 | 121,730 |
Total Property, Plant and Equipment, Gross | $ 1,559,304 | $ 1,379,968 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Lives of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment | ||
Property, plant and equipment | $ 1,559,304 | $ 1,379,968 |
Accumulated amortization | $ 782,727 | 690,986 |
Land Improvements | Minimum | ||
Property, Plant and Equipment | ||
Property, plant and equipment, useful life | 5 years | |
Land Improvements | Maximum | ||
Property, Plant and Equipment | ||
Property, plant and equipment, useful life | 15 years | |
Building and Improvements | Minimum | ||
Property, Plant and Equipment | ||
Property, plant and equipment, useful life | 10 years | |
Building and Improvements | Maximum | ||
Property, Plant and Equipment | ||
Property, plant and equipment, useful life | 32 years | |
Machinery, Equipment and Office Furniture | Minimum | ||
Property, Plant and Equipment | ||
Property, plant and equipment, useful life | 2 years | |
Machinery, Equipment and Office Furniture | Maximum | ||
Property, Plant and Equipment | ||
Property, plant and equipment, useful life | 20 years | |
Software costs | ||
Property, Plant and Equipment | ||
Property, plant and equipment | $ 5,800 | 5,700 |
Accumulated amortization | $ 5,700 | $ 5,400 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) | Jul. 01, 2023 USD ($) | Apr. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 24, 2022 USD ($) | Jun. 25, 2022 USD ($) | Mar. 26, 2022 USD ($) | Dec. 30, 2023 USD ($) segment | Dec. 31, 2022 USD ($) | Dec. 25, 2021 USD ($) | |
Revenue Recognition. | |||||||||||
Number of primary segments the Company operates | segment | 3 | ||||||||||
Net sales | $ 1,524,353 | $ 1,827,637 | $ 2,043,918 | $ 1,822,476 | $ 1,913,697 | $ 2,322,855 | $ 2,900,874 | $ 2,489,313 | $ 7,218,384 | $ 9,626,739 | $ 8,636,134 |
Change % in net sales | (25.00%) | 11.50% | |||||||||
Point in Time Revenue | |||||||||||
Revenue Recognition. | |||||||||||
Net sales | $ 7,069,690 | $ 9,442,794 | 8,512,012 | ||||||||
Change % in net sales | (25.10%) | 10.90% | |||||||||
Over Time Revenue | |||||||||||
Revenue Recognition. | |||||||||||
Net sales | $ 148,694 | $ 183,945 | $ 124,122 | ||||||||
Change % in net sales | (19.20%) | 48.20% | |||||||||
Minimum | |||||||||||
Revenue Recognition. | |||||||||||
Number of months to complete contract projects | 6 months | 6 months | |||||||||
Maximum | |||||||||||
Revenue Recognition. | |||||||||||
Number of months to complete contract projects | 18 months | 18 months |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Percentage of Completion Account Balances (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Cost and Earnings in Excess of Billings | $ 3,572 | $ 6,798 |
Billings in Excess of Cost and Earnings | $ 9,487 | $ 10,184 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Sep. 24, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Numerator: | |||||||||||
Net Income (Loss) | $ 103,447 | $ 134,035 | $ 150,761 | $ 126,069 | $ 132,589 | $ 167,241 | $ 203,118 | $ 189,703 | $ 514,312 | $ 692,651 | $ 535,640 |
Adjustment for earnings allocated to non-vested restricted common stock equivalents | (25,139) | (27,488) | (17,342) | ||||||||
Net earnings for calculating EPS | $ 489,173 | $ 665,163 | $ 518,298 | ||||||||
Denominator: | |||||||||||
Weighted average shares outstanding (in shares) | 62,683 | 62,667 | 62,209 | ||||||||
Adjustment for non-vested restricted common stock equivalents (in shares) | (3,064) | (2,487) | (2,014) | ||||||||
Shares for calculating basic EPS (in shares) | 59,619 | 60,180 | 60,195 | ||||||||
Effect of dilutive restricted common stock equivalents (in shares) | 1,020 | 473 | 159 | ||||||||
Shares for calculating diluted EPS (in shares) | 60,639 | 60,653 | 60,354 | ||||||||
Net earnings per share | |||||||||||
Basic (USD per share) | $ 1.65 | $ 2.14 | $ 2.40 | $ 2.01 | $ 2.12 | $ 2.68 | $ 3.24 | $ 3.01 | $ 8.21 | $ 11.05 | $ 8.61 |
Diluted (USD per share) | $ 1.62 | $ 2.10 | $ 2.36 | $ 1.98 | $ 2.10 | $ 2.66 | $ 3.23 | $ 3 | $ 8.07 | $ 10.97 | $ 8.59 |
FAIR VALUE - Asset Measured at
FAIR VALUE - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Fixed Income | Restricted Investment | ||
Fair Value | ||
Investments at fair value | $ 24,400 | $ 19,600 |
Money market funds | Cash and Cash Equivalents | ||
Fair Value | ||
Investments at fair value | 498,500 | 391,200 |
Money market funds | Restricted Investment | ||
Fair Value | ||
Investments at fair value | 400 | 300 |
Equity | Other Non current Assets | ||
Fair Value | ||
Investments at fair value | 10,500 | |
Mutual funds, equity and alternative investments | Investments | ||
Fair Value | ||
Investments at fair value | 34,800 | 36,100 |
Money market and mutual funds | Other Non current Assets | ||
Fair Value | ||
Investments at fair value | 100 | 500 |
Ardellis Insurance Ltd. | ||
Fair Value | ||
Total Fair Value | 59,177 | 55,642 |
Estimate of Fair Value Measurement | Recurring | ||
Fair Value | ||
Investments at fair value | 568,655 | 447,666 |
Estimate of Fair Value Measurement | Recurring | Fixed Income | ||
Fair Value | ||
Investments at fair value | 24,088 | 19,286 |
Estimate of Fair Value Measurement | Recurring | Money market funds | ||
Fair Value | ||
Investments at fair value | 498,933 | 391,505 |
Estimate of Fair Value Measurement | Recurring | Treasury securities | ||
Fair Value | ||
Investments at fair value | 344 | 343 |
Estimate of Fair Value Measurement | Recurring | Equity | ||
Fair Value | ||
Investments at fair value | 26,911 | 17,337 |
Estimate of Fair Value Measurement | Recurring | Alternative Investments | ||
Fair Value | ||
Investments at fair value | 4,052 | 4,102 |
Estimate of Fair Value Measurement | Recurring | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 14,327 | 15,093 |
Estimate of Fair Value Measurement | Recurring | Domestic stock | ||
Fair Value | ||
Investments at fair value | 13,330 | 13,067 |
Estimate of Fair Value Measurement | Recurring | International stock funds | ||
Fair Value | ||
Investments at fair value | 509 | 1,414 |
Estimate of Fair Value Measurement | Recurring | Target funds | ||
Fair Value | ||
Investments at fair value | 9 | 8 |
Estimate of Fair Value Measurement | Recurring | Bond funds | ||
Fair Value | ||
Investments at fair value | 5 | 130 |
Estimate of Fair Value Measurement | Recurring | Alternative funds | ||
Fair Value | ||
Investments at fair value | 474 | 474 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | ||
Fair Value | ||
Investments at fair value | 528,994 | 425,586 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Fixed Income | ||
Fair Value | ||
Investments at fair value | 5,112 | 2,594 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Money market funds | ||
Fair Value | ||
Investments at fair value | 492,800 | 390,219 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Treasury securities | ||
Fair Value | ||
Investments at fair value | 344 | 343 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Equity | ||
Fair Value | ||
Investments at fair value | 16,411 | 17,337 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 14,327 | 15,093 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Domestic stock | ||
Fair Value | ||
Investments at fair value | 13,330 | 13,067 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | International stock funds | ||
Fair Value | ||
Investments at fair value | 509 | 1,414 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Target funds | ||
Fair Value | ||
Investments at fair value | 9 | 8 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Bond funds | ||
Fair Value | ||
Investments at fair value | 5 | 130 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Alternative funds | ||
Fair Value | ||
Investments at fair value | 474 | 474 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | ||
Fair Value | ||
Investments at fair value | 25,109 | 17,978 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Fixed Income | ||
Fair Value | ||
Investments at fair value | 18,976 | 16,692 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value | ||
Investments at fair value | 6,133 | 1,286 |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | ||
Fair Value | ||
Investments at fair value | 14,552 | 4,102 |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | Equity | ||
Fair Value | ||
Investments at fair value | 10,500 | |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | Alternative Investments | ||
Fair Value | ||
Investments at fair value | $ 4,052 | $ 4,102 |
FAIR VALUE - Available for Sale
FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Available-for-sale securities | ||
Total Securities Cost | $ 54,940 | $ 54,039 |
Unrealized Gain (Loss) | 4,237 | 1,603 |
Total Fair Value | 59,177 | 55,642 |
Fixed Income | ||
Available-for-sale securities | ||
Debt Securities Cost | 25,514 | 21,399 |
Debt Securities Unrealized Gain/(Loss) | (1,426) | (2,113) |
Debt Securities Fair Value | 24,088 | 19,286 |
Treasury securities | ||
Available-for-sale securities | ||
Debt Securities Cost | 344 | 343 |
Debt Securities Fair Value | 344 | 343 |
Equity | ||
Available-for-sale securities | ||
Equity Securities Cost | 13,523 | 15,762 |
Equity Securities Unrealized Gain/(Loss) | 2,888 | 1,575 |
Equity Securities Fair Value | 16,411 | 17,337 |
Mutual Fund | ||
Available-for-sale securities | ||
Debt Securities Cost | 12,348 | 13,430 |
Debt Securities Unrealized Gain/(Loss) | 1,934 | 1,144 |
Debt Securities Fair Value | 14,282 | 14,574 |
Alternative Investments | ||
Available-for-sale securities | ||
Debt Securities Cost | 3,211 | 3,105 |
Debt Securities Unrealized Gain/(Loss) | 841 | 997 |
Debt Securities Fair Value | $ 4,052 | $ 4,102 |
BUSINESS COMBINATIONS AND EQU_3
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 20, 2023 | Dec. 06, 2022 | Jun. 27, 2022 | May 09, 2022 | Dec. 27, 2021 | Dec. 30, 2023 | |
Business Acquisition | ||||||
Aggregate acquisitions' net sales | $ 95,000 | |||||
Aggregate acquisitions' operating profit | $ 3,300 | |||||
Dempsey Wood Products, LLC | ||||||
Business Acquisition | ||||||
Ownership interest | 50% | |||||
Sellers | Dempsey Wood Products, LLC | ||||||
Business Acquisition | ||||||
Ownership interest | 50% | |||||
Dempsey Wood Products, LLC | Packaging | ||||||
Business Acquisition | ||||||
Purchase consideration, equity method investment | $ 69,791 | |||||
Intangible Assets | 34,552 | |||||
Net Tangible Assets | 35,239 | |||||
Acquired equity method investment, prior year sales | $ 69,000 | |||||
UFP Palets | All Other | International Segment | ||||||
Business Acquisition | ||||||
Cash paid for business acquisition, net of cash acquired | $ 52,841 | |||||
Percentage of stock purchase (as a percent) | 80% | |||||
Intangible Assets | $ 43,785 | |||||
Net Tangible Assets | 9,056 | |||||
Acquired entity, trailing 12-months sales | $ 38,000 | |||||
Titan Corrugated, Inc. (Titan) and All Boxed Up, LLC | Packaging | ||||||
Business Acquisition | ||||||
Cash paid for business acquisition | $ 70,942 | |||||
Percentage of assets purchased (as a percent) | 100% | |||||
Intangible Assets | $ 48,745 | |||||
Net Tangible Assets | 22,197 | |||||
Acquired entity, trailing 12-months sales | $ 46,500 | |||||
Cedar Poly, LLC | Retail | ||||||
Business Acquisition | ||||||
Cash paid for business acquisition | $ 15,398 | |||||
Percentage of assets purchased (as a percent) | 100% | |||||
Intangible Assets | $ 4,821 | |||||
Net Tangible Assets | 10,577 | |||||
Acquired entity, prior year sales | $ 17,300 | |||||
Ultra | Retail | ||||||
Business Acquisition | ||||||
Cash paid for business acquisition, net of cash acquired | $ 24,057 | |||||
Percentage of stock purchase (as a percent) | 100% | |||||
Estimated contingent consideration | $ 2,000 | |||||
Intangible Assets | 20,390 | |||||
Net Tangible Assets | 5,667 | |||||
Acquired entity, prior year sales | $ 45,000 |
BUSINESS COMBINATIONS AND EQU_4
BUSINESS COMBINATIONS AND EQUITY METHOD INVESTMENTS - Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 |
Business Acquisition | |||
GOODWILL | $ 336,313 | $ 337,320 | $ 315,038 |
All Boxed Up | |||
Business Acquisition | |||
GOODWILL | 628 | ||
Intangible assets | 1,914 | ||
UFP Palets | |||
Business Acquisition | |||
GOODWILL | 7,077 | ||
Intangible assets | 43,785 | ||
Titan | |||
Business Acquisition | |||
GOODWILL | 15,367 | ||
Intangible assets | 46,831 | ||
Cedar Poly, LLC | |||
Business Acquisition | |||
GOODWILL | 1,441 | ||
Intangible assets | 4,821 | ||
Ultra | |||
Business Acquisition | |||
GOODWILL | 8,550 | ||
Intangible assets | 20,390 | ||
Non-compete agreements | Cedar Poly, LLC | |||
Business Acquisition | |||
Intangible assets other than goodwill | 390 | ||
Technology | All Boxed Up | |||
Business Acquisition | |||
Intangible assets other than goodwill | 393 | ||
Technology | Titan | |||
Business Acquisition | |||
Intangible assets other than goodwill | 9,607 | ||
Customer relationships | All Boxed Up | |||
Business Acquisition | |||
Intangible assets other than goodwill | 864 | ||
Customer relationships | UFP Palets | |||
Business Acquisition | |||
Intangible assets other than goodwill | 36,708 | ||
Customer relationships | Titan | |||
Business Acquisition | |||
Intangible assets other than goodwill | 21,136 | ||
Customer relationships | Cedar Poly, LLC | |||
Business Acquisition | |||
Intangible assets other than goodwill | 2,490 | ||
Customer relationships | Ultra | |||
Business Acquisition | |||
Intangible assets other than goodwill | 6,820 | ||
Tradename | All Boxed Up | |||
Business Acquisition | |||
Intangible assets other than goodwill | 29 | ||
Tradename | Titan | |||
Business Acquisition | |||
Intangible assets other than goodwill | 721 | ||
Tradename | Cedar Poly, LLC | |||
Business Acquisition | |||
Intangible assets other than goodwill | 500 | ||
Tradename | Ultra | |||
Business Acquisition | |||
Intangible assets other than goodwill | $ 5,020 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |||
Goodwill impairment | $ 2,480 | ||
Indefinite-lived intangible assets | $ 7,345 | 7,339 | |
Amortization of intangibles | $ 21,327 | $ 19,499 | $ 13,948 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Reporting Segment (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | |
Goodwill | |||
Goodwill, Beginning Balance | $ 337,320 | $ 315,038 | |
Acquisitions | 7,077 | 34,833 | |
Purchase Accounting Adjustments | (8,846) | (9,041) | |
Impairments | (2,480) | ||
Foreign Exchange, Net | 762 | (1,030) | |
Goodwill, Ending Balance | $ 337,320 | 336,313 | 337,320 |
Retail | |||
Goodwill | |||
Goodwill, Beginning Balance | 84,640 | 73,376 | |
Acquisitions | 10,971 | ||
Purchase Accounting Adjustments | (979) | 293 | |
Goodwill, Ending Balance | 84,640 | 83,661 | 84,640 |
Packaging | |||
Goodwill | |||
Goodwill, Beginning Balance | 148,909 | 128,541 | |
Acquisitions | 23,862 | ||
Purchase Accounting Adjustments | (7,867) | (3,494) | |
Goodwill, Ending Balance | 148,909 | 141,042 | 148,909 |
Construction | |||
Goodwill | |||
Goodwill, Beginning Balance | 87,670 | 89,000 | |
Purchase Accounting Adjustments | (1,074) | ||
Foreign Exchange, Net | 135 | (256) | |
Goodwill, Ending Balance | 87,670 | 87,805 | 87,670 |
Construction | Commercial | |||
Goodwill | |||
Impairments | (2,500) | ||
All Other | |||
Goodwill | |||
Goodwill, Beginning Balance | 16,101 | 24,121 | |
Acquisitions | 7,077 | ||
Purchase Accounting Adjustments | (4,766) | ||
Impairments | (2,480) | ||
Foreign Exchange, Net | 627 | (774) | |
Goodwill, Ending Balance | $ 16,101 | $ 23,805 | $ 16,101 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Included in Other Amortizable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets | ||
Assets | $ 242,634 | $ 201,468 |
Accumulated Amortization | (67,439) | (57,576) |
Net Value | 175,195 | 143,892 |
Non-compete agreements | ||
Finite-Lived Intangible Assets | ||
Assets | 9,886 | 12,577 |
Accumulated Amortization | (5,966) | (7,109) |
Net Value | 3,920 | 5,468 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Assets | 171,029 | 139,112 |
Accumulated Amortization | (43,403) | (34,646) |
Net Value | 127,626 | 104,466 |
Licensing agreements | ||
Finite-Lived Intangible Assets | ||
Assets | 4,589 | |
Accumulated Amortization | (4,589) | |
Patents | ||
Finite-Lived Intangible Assets | ||
Assets | 1,622 | 1,976 |
Accumulated Amortization | (898) | (1,104) |
Net Value | 724 | 872 |
Technology | ||
Finite-Lived Intangible Assets | ||
Assets | 12,600 | 2,600 |
Accumulated Amortization | (2,173) | (875) |
Net Value | 10,427 | 1,725 |
Tradename | ||
Finite-Lived Intangible Assets | ||
Assets | 39,831 | 38,826 |
Accumulated Amortization | (12,320) | (8,393) |
Net Value | 27,511 | 30,433 |
Software | ||
Finite-Lived Intangible Assets | ||
Assets | 7,666 | 1,788 |
Accumulated Amortization | (2,679) | (860) |
Net Value | $ 4,987 | $ 928 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Useful Lives of Intangible Assets (Details) | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Non-compete agreements | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted average amortization period | 7 years 6 months | |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted average amortization period | 10 years 4 months 26 days | |
Licensing agreements | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 10 years | 10 years |
Weighted average amortization period | 10 years | |
Patents | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 10 years | 10 years |
Weighted average amortization period | 10 years | |
Technology | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted average amortization period | 9 years 6 months | |
Tradename | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted average amortization period | 10 years 10 months 24 days | |
Software | ||
Acquired Finite-Lived Intangible Assets | ||
Weighted average amortization period | 3 years | |
Minimum | Non-compete agreements | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 2 years | 2 years |
Minimum | Customer relationships | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 5 years | 5 years |
Minimum | Technology | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 5 years | 5 years |
Minimum | Tradename | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 5 years | 5 years |
Minimum | Software | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 3 years | 3 years |
Maximum | Non-compete agreements | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 15 years | 15 years |
Maximum | Customer relationships | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 15 years | 15 years |
Maximum | Technology | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 12 years | 12 years |
Maximum | Tradename | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 25 years | 25 years |
Maximum | Software | ||
Acquired Finite-Lived Intangible Assets | ||
Estimated useful life | 5 years | 5 years |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense for Intangibles (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2024 | $ 23,580 | |
2025 | 22,998 | |
2026 | 20,520 | |
2027 | 18,636 | |
2028 | 18,021 | |
Thereafter | 71,440 | |
Net Value | $ 175,195 | $ 143,892 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||||||
Dec. 06, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 05, 2022 | Feb. 28, 2021 | Feb. 27, 2021 | Aug. 10, 2020 | Nov. 01, 2018 | |
Debt | ||||||||
Outstanding letters of credit | $ 47.8 | $ 59 | ||||||
Fair value of long-term debt including current portion | 241.4 | |||||||
Difference between fair value and carrying value of debt | (35.1) | |||||||
Revolving Credit Facility | ||||||||
Debt | ||||||||
Outstanding amount | 3.7 | 5.5 | ||||||
Term of debt | 5 years | |||||||
Maximum borrowing capacity | $ 750 | $ 550 | $ 550 | $ 375 | $ 375 | |||
Outstanding letters of credit | 60 | |||||||
Outstanding letters of credit that can be converted to foreign currency | $ 100 | |||||||
Remaining borrowing capacity | $ 709 | $ 741.2 | ||||||
Revolving Credit Facility | Minimum | ||||||||
Debt | ||||||||
Facility fee (in hundredths) | 0.15% | |||||||
Revolving Credit Facility | Maximum | ||||||||
Debt | ||||||||
Facility fee (in hundredths) | 0.30% | |||||||
Series 2018 C Senior Notes | Senior Notes | ||||||||
Debt | ||||||||
Interest rate (in hundredths) | 4.20% | 4.20% | ||||||
Series 2018 D Senior Notes | Senior Notes | ||||||||
Debt | ||||||||
Interest rate (in hundredths) | 4.27% | 4.27% | ||||||
Series 2020 E Senior Notes | Senior Notes | ||||||||
Debt | ||||||||
Interest rate (in hundredths) | 3.04% | 3.04% | 3.04% | |||||
Debt | $ 50 | |||||||
Series 2020 F Senior Notes | Senior Notes | ||||||||
Debt | ||||||||
Interest rate (in hundredths) | 3.08% | 3.08% | 3.08% | |||||
Debt | $ 50 | |||||||
Series 2020 G Senior Notes | Senior Notes | ||||||||
Debt | ||||||||
Interest rate (in hundredths) | 3.15% | 3.15% | 3.15% | |||||
Debt | $ 50 | |||||||
Series 2012 Senior Notes Tranche B | Senior Notes | ||||||||
Debt | ||||||||
Interest rate (in hundredths) | 3.98% | 3.98% | ||||||
Letter of Credit | ||||||||
Debt | ||||||||
Term of debt | 1 year | |||||||
Outstanding letters of credit | $ 10.5 | $ 10.5 | ||||||
Letter of Credit | Minimum | ||||||||
Debt | ||||||||
Interest rate (in hundredths) | 1.125% | |||||||
Letter of Credit | Maximum | ||||||||
Debt | ||||||||
Interest rate (in hundredths) | 1.225% | |||||||
Letter of Credit | Revolving Credit Facility | ||||||||
Debt | ||||||||
Outstanding letters of credit | $ 37.3 | 37.3 | ||||||
Letter of Credit | Industrial Development Revenue Bonds | ||||||||
Debt | ||||||||
Outstanding letters of credit | $ 3.3 | $ 3.3 |
DEBT - Long-term Debt Obligatio
DEBT - Long-term Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 06, 2022 | Dec. 05, 2022 | Feb. 28, 2021 | Feb. 27, 2021 | Aug. 10, 2020 | Nov. 01, 2018 |
Debt | ||||||||
Total | $ 276,584 | $ 278,330 | ||||||
Less current portion | (42,900) | (2,942) | ||||||
Less debt issuance costs | (150) | (234) | ||||||
Long-term portion | 233,534 | 275,154 | ||||||
Finance Leases and Foreign Affiliate Debt | ||||||||
Debt | ||||||||
Total | 4,592 | 4,565 | ||||||
Senior Notes | Series 2020 E Senior Notes | ||||||||
Debt | ||||||||
Total | $ 50,000 | $ 50,000 | ||||||
Interest rate (in hundredths) | 3.04% | 3.04% | 3.04% | |||||
Senior Notes | Series 2020 F Senior Notes | ||||||||
Debt | ||||||||
Total | $ 50,000 | $ 50,000 | ||||||
Interest rate (in hundredths) | 3.08% | 3.08% | 3.08% | |||||
Senior Notes | Series 2020 G Senior Notes | ||||||||
Debt | ||||||||
Total | $ 50,000 | $ 50,000 | ||||||
Interest rate (in hundredths) | 3.15% | 3.15% | 3.15% | |||||
Senior Notes | Series 2018 C Senior Notes | ||||||||
Debt | ||||||||
Total | $ 40,000 | $ 40,000 | ||||||
Interest rate (in hundredths) | 4.20% | 4.20% | ||||||
Senior Notes | Series 2018 D Senior Notes | ||||||||
Debt | ||||||||
Total | $ 35,000 | $ 35,000 | ||||||
Interest rate (in hundredths) | 4.27% | 4.27% | ||||||
Senior Notes | Series 2012 Senior Notes Tranche B | ||||||||
Debt | ||||||||
Total | $ 40,000 | $ 40,000 | ||||||
Interest rate (in hundredths) | 3.98% | 3.98% | ||||||
Revolving Credit Facility | ||||||||
Debt | ||||||||
Maximum borrowing capacity | $ 750,000 | $ 550,000 | $ 550,000 | $ 375,000 | $ 375,000 | |||
Revolving Credit Facility | Foreign Affiliate Debt | ||||||||
Debt | ||||||||
Total | $ 3,692 | $ 5,465 | ||||||
Interest rate at period end (in hundredths) | 5.44% | 4.13% | ||||||
Corporate Debt Securities | Series 1999 Industrial Development Revenue Bonds | ||||||||
Debt | ||||||||
Total | $ 3,300 | $ 3,300 | ||||||
Interest rate at period end (in hundredths) | 3.33% | 1.04% |
DEBT - Principal Maturities of
DEBT - Principal Maturities of Long-Term Debt and Capital Lease Obligations (Details) $ in Thousands | Dec. 30, 2023 USD ($) |
Principal Maturities | |
2024 | $ 42,823 |
2025 | 640 |
2026 | 186 |
2027 | 3,896 |
2028 | 40,223 |
Thereafter | 188,666 |
Total | $ 276,434 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Leases | |||
Retained earnings | $ 2,582,332 | $ 2,217,410 | |
Right-of-use assets | 103,774 | 107,517 | |
Operating lease liability | $ 107,862 | ||
Lessee, Operating Lease, Existence of Option to Extend | true | ||
Rent expense | $ 49,700 | $ 48,200 | $ 40,100 |
Operating lease weighted average remaining term | 7 years 2 months 15 days | 6 years 9 months 10 days | |
Operating lease weighted average discount rate | 4.53% | 3.70% | |
Lease costs | |||
Operating lease cost | $ 33,829 | $ 32,458 | |
Short-term lease cost | 9,525 | 10,490 | |
Variable lease cost | 6,332 | 5,291 | |
Sublease Income | 2,267 | 2,876 | |
Total lease cost | 47,419 | 45,363 | |
Cash paid - operation leases | 32,400 | 30,200 | |
Right-of-use assets obtained in exchange for new operating leases | 35,400 | $ 32,000 | |
Future minimum payments | |||
2024 | 32,796 | ||
2025 | 29,435 | ||
2026 | 27,104 | ||
2027 | 17,998 | ||
2028 | 13,517 | ||
Thereafter | 31,686 | ||
Total minimum lease payments | 152,536 | ||
Less present value discount | (44,674) | ||
Total lease liability | $ 107,862 | ||
Minimum | |||
Leases | |||
Length of lease (in years) | 1 year | ||
Renewal options of lease | 5 years | ||
Minimum | Motor vehicles | |||
Leases | |||
Length of lease (in years) | 1 year | ||
Minimum | Equipment | |||
Leases | |||
Length of lease (in years) | 1 year | ||
Minimum | Aircraft | |||
Leases | |||
Length of lease (in years) | 1 year | ||
Maximum | |||
Leases | |||
Length of lease (in years) | 10 years | ||
Renewal options of lease | 15 years | ||
Maximum | Motor vehicles | |||
Leases | |||
Length of lease (in years) | 10 years | ||
Maximum | Equipment | |||
Leases | |||
Length of lease (in years) | 10 years | ||
Maximum | Aircraft | |||
Leases | |||
Length of lease (in years) | 10 years |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) - USD ($) $ in Millions | Dec. 30, 2023 | Dec. 31, 2022 |
Deferred compensation | ||
Deferred compensation liability | $ 0 | $ 0.1 |
Liabilities related to Plan | 57.8 | 50.4 |
Other Assets | ||
Deferred compensation | ||
Investment in life insurance contracts | 12.2 | 11.6 |
Assets held by the Plan | $ 0.1 | $ 0.5 |
COMMON STOCK - Common Stock Iss
COMMON STOCK - Common Stock Issuances (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Jul. 26, 2023 | |
Common Stock | ||||
Common stock issued, net of forfeitures | 820,591 | 805,562 | 546,235 | |
Repurchase of common stock (in shares) | 974,869 | 1,246,616 | ||
Value of shares authorized to be repurchased | $ 200 | |||
Remaining authorized amount, repurchase of stock plan | $ 173 | |||
Average Share Price | ||||
Repurchase of common stock (dollars per share) | $ 84.27 | $ 76.83 | ||
Stock Purchase Plan | ||||
Common Stock | ||||
Common stock issued | 33,000 | 44,000 | ||
Average Share Price | ||||
Common stock issued (dollars per share) | $ 98.20 | $ 73.45 | ||
Stock Gift Program | ||||
Common Stock | ||||
Common stock issued | 2,000 | 2,000 | ||
Average Share Price | ||||
Common stock issued (dollars per share) | $ 95.42 | $ 78.23 | ||
Director Compensation Plan | ||||
Common Stock | ||||
Common stock issued | 3,000 | 4,000 | ||
Average Share Price | ||||
Common stock issued (dollars per share) | $ 92.82 | $ 79.98 | ||
LTSIP | ||||
Common Stock | ||||
Common stock issued | 756,000 | 755,000 | ||
Average Share Price | ||||
Common stock issued (dollars per share) | $ 86.14 | $ 82.73 | ||
Executive Stock Grants Plan | ||||
Common Stock | ||||
Common stock issued | 75,000 | 62,000 | ||
Average Share Price | ||||
Common stock issued (dollars per share) | $ 85.89 | $ 82.87 | ||
Deferred Compensation Plans | ||||
Common Stock | ||||
Common stock issued | 124,000 | 113,000 | ||
Average Share Price | ||||
Common stock issued (dollars per share) | $ 88.43 | $ 81.86 | ||
Stock grant programs | ||||
Common Stock | ||||
Common stock issued, net of forfeitures | 821,000 | 806,000 | ||
Forfeitures | (15,000) | (17,000) | ||
Average Share Price | ||||
Common stock issued (dollars per share) | $ 86.16 | $ 82.71 |
COMMON STOCK - Nonvested Restri
COMMON STOCK - Nonvested Restricted Shares Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 26, 2020 | |
Restricted Awards | ||||
Nonvested, beginning balance (in shares) | 2,138,255 | 1,627,032 | 1,363,794 | |
Granted (in shares) | 830,346 | 815,874 | 560,516 | |
Vested (in shares) | (233,763) | (286,661) | (274,271) | |
Forfeited (in shares) | (14,001) | (17,990) | (23,007) | |
Nonvested, ending balance (in shares) | 2,720,837 | 2,138,255 | 1,627,032 | 1,363,794 |
Weighted Average Grant Date Fair Value | ||||
Nonvested, beginning balance (in dollars per share) | $ 58.70 | $ 45.23 | $ 35.14 | |
Granted (in dollars per share) | 86.11 | 79.97 | 60.24 | |
Vested (in dollars per share) | 40.50 | 34 | 26.50 | |
Forfeited (in dollars per share) | 63.54 | 54.07 | 39.68 | |
Nonvested, ending balance (in dollars per share) | $ 68.61 | $ 58.70 | $ 45.23 | $ 35.14 |
Unrecognized Compensation Expense | ||||
Nonvested restricted awards, unrecognized compensation expense | $ 76.9 | $ 51.4 | $ 6.6 | $ 6.3 |
Nonvested restricted awards, weighted-average period to recognize expense | 3 years 8 months 4 days | 3 years 8 months 26 days | 5 months 4 days | 7 months 13 days |
COMMON STOCK - Share-based Comp
COMMON STOCK - Share-based Compensation (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 31, 2023 | Dec. 31, 2021 | |
Common stock | |||||
Granted (in shares) | 830,346 | 815,874 | 560,516 | ||
Share-based compensation expense | $ 34.9 | $ 28.2 | $ 11.2 | ||
Income tax benefit from share-based compensation | 8.2 | 6.9 | 2.7 | ||
Cash received from option exercises and share issuances under plans | $ 2.7 | $ 2.8 | 2.1 | ||
Stock Repurchase Program [Abstract] | |||||
Repurchase of shares (in shares) | 974,869 | 1,246,616 | |||
Stock Purchase Plan | |||||
Common stock | |||||
Discount rate from fair market value on purchase date (in hundredths) | 85% | ||||
Director Compensation Plan | |||||
Common stock | |||||
Multiplier of retainer fee (in hundredths) | 110% | ||||
Stock Retainer Plan expense | $ 1.9 | $ 2 | $ 1.7 | ||
Employee Stock Option [Member] | |||||
Common stock | |||||
Unrecognized compensation expense of stock options | 0 | $ 0 | $ 0 | ||
Bonus Awards | |||||
Common stock | |||||
Share-based compensation expense | $ 5 | 13.8 | |||
Bonus Awards | Awards with three year vesting | |||||
Common stock | |||||
Vesting period (in years) | 3 years | ||||
Bonus Awards | Awards with five year vesting | |||||
Common stock | |||||
Vesting period (in years) | 5 years | ||||
Bonus Awards | Awards with eight year vesting | |||||
Common stock | |||||
Vesting period (in years) | 8 years | ||||
Bonus Awards | LTSIP | |||||
Common stock | |||||
Amount of grants | $ 28.9 | ||||
Granted (in shares) | 254,746 | ||||
Performance Shares | |||||
Common stock | |||||
Amount of grants | $ 1.2 | ||||
Granted (in shares) | 10,893 | ||||
Vesting period (in years) | 3 years | ||||
Sales Incentive Awards | |||||
Common stock | |||||
Amount of grants | $ 5.9 | ||||
Granted (in shares) | 51,802 | ||||
Vesting period (in years) | 5 years | ||||
Share-based compensation expense | $ 1 | $ 0.9 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 25, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Employer matching contribution, percent (in hundredths) | 25% | 25% | 25% | |||
Defined contribution plan, cost recognized | $ 8.8 | $ 11.7 | $ 9.2 | |||
Additional matching contributions | $ 1.8 | 4.6 | $ 3.7 | |||
Maximum annual contribution per employee (in hundredths) | 6% | |||||
Number of years of service with the Company | 20 years | |||||
Number of years of service with the Company as on officer | 10 years | |||||
Other Liabilities | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Liabilities related to Plan | $ 15.5 | $ 14.8 | $ 14.8 |
INCOME TAXES - Components of Ea
INCOME TAXES - Components of Earnings before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Components of earnings before income taxes [Abstract] | |||
U.S. | $ 633,816 | $ 876,071 | $ 645,316 |
Foreign | 37,425 | 58,745 | 81,020 |
Total. | $ 671,241 | $ 934,816 | $ 726,336 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Currently Payable: | |||
Federal | $ 123,257 | $ 181,029 | $ 115,077 |
State and local | 28,580 | 44,646 | 30,441 |
Foreign | 10,808 | 17,336 | 21,095 |
Total current payable | 162,645 | 243,011 | 166,613 |
Net Deferred: | |||
Federal | (2,249) | (8,561) | 6,242 |
State and local | (3,223) | (3,657) | 118 |
Foreign | (389) | (941) | 999 |
Total net deferred | (5,861) | (13,159) | 7,359 |
Income Tax Expense (Benefit), Total | $ 156,784 | $ 229,852 | $ 173,972 |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 30, 2023 | Dec. 31, 2022 |
Deferred Tax Assets | ||
Employee benefits | $ 45,661 | $ 37,893 |
Lease liability | 27,918 | 28,746 |
Net operating loss carryforwards | 7,881 | 6,891 |
Foreign subsidiary capital loss carryforward | 935 | 500 |
Other tax credits | 31 | 102 |
Inventory | 2,397 | 3,732 |
Reserves on receivables | 2,203 | 3,273 |
Accrued expenses | 3,373 | 6,791 |
Capitalized research and development costs | 28,021 | 11,080 |
Gross deferred income tax assets | 118,420 | 99,008 |
Valuation allowance | (6,014) | (4,618) |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent, Total | 112,406 | 94,390 |
Deferred Tax Liabilities | ||
Depreciation | (82,617) | (69,711) |
Intangibles | (43,455) | (43,643) |
Right of use assets | (26,870) | (27,849) |
Other, net | (484) | (702) |
Deferred income tax liabilities | (153,426) | (141,905) |
Net deferred income tax liability | $ (41,020) | $ (47,515) |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Effective income tax rate reconciliation | |||
Statutory federal income tax rate | 21% | 21% | 21% |
State and local taxes (net of federal benefits) | 3.60% | 3.40% | 3.30% |
Tax credits, including foreign tax credit | (0.90%) | (0.80%) | (0.60%) |
Change in uncertain tax positions reserve | 0.20% | (0.10%) | (0.10%) |
Other permanent differences | 0.20% | 0.10% | (0.40%) |
Other, net | (0.70%) | 1% | 0.70% |
Effective income tax rate | 23.40% | 24.60% | 23.90% |
INCOME TAXES - NOL and Credit C
INCOME TAXES - NOL and Credit Carryforwards (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Operating Loss and Credit Carryforwards | |||
Valuation allowance - NOL carryforwards | $ 5,500 | ||
U.S. federal corporate tax rate | 21% | 21% | 21% |
Domestic Tax Authority | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | $ 208 | ||
Domestic Tax Authority | 2039 - 2043 | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 208 | ||
State | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 3,414 | ||
Tax Credits | 31 | ||
State | 2024 - 2028 | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 27 | ||
State | 2029 - 2033 | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 396 | ||
State | 2034 - 2038 | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 1,618 | ||
Tax Credits | 31 | ||
State | 2039 - 2043 | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 1,373 | ||
Foreign Country | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 3,700 | ||
Foreign Country | 2024 - 2028 | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 206 | ||
Foreign Country | 2029 - 2033 | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 1,268 | ||
Foreign Country | 2034 - 2038 | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 1,656 | ||
Foreign Country | Thereafter | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 570 | ||
Federal, state and foreign | |||
Operating Loss and Credit Carryforwards | |||
Net Operating Losses | 7,900 | ||
Capital Loss Carryforward | |||
Operating Loss and Credit Carryforwards | |||
Valuation allowance - NOL carryforwards | 100 | ||
Wholly-owned subsidiary | Capital Loss Carryforward | |||
Operating Loss and Credit Carryforwards | |||
Valuation allowance - NOL carryforwards | $ 500 |
ACCOUNTING FOR UNCERTAINTY IN_3
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Reconciliation of beginning and ending amount of unrecognized tax benefits [Roll Forward] | |||
Gross unrecognized tax benefits beginning of year | $ 3,217 | $ 3,603 | $ 3,892 |
Increase in tax positions for prior years | 943 | 437 | |
Decrease in tax positions for prior years | (216) | ||
Increase in tax positions for current year | 1,286 | 764 | 839 |
Lapse in statute of limitations | (675) | (934) | (1,565) |
Gross unrecognized tax benefits end of year | 4,771 | 3,217 | 3,603 |
Income tax penalties and interest accrued | 400 | $ 300 | $ 500 |
Increase in unrecognized tax benefits is reasonably possible | $ 1,200 |
COMMITMENTS, CONTINGENCIES, A_2
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2023 | Dec. 31, 2022 | |
Long-term commitment | ||
Outstanding purchase commitments on capital projects | $ 82.9 | |
Surety Bonds and Letters of Credit | ||
Outstanding letters of credit | 47.8 | $ 59 |
Open Projects | ||
Surety Bonds and Letters of Credit | ||
Payment and performance bonds outstanding | 20.9 | |
Completed Projects | ||
Surety Bonds and Letters of Credit | ||
Payment and performance bonds outstanding | 6.9 | |
Insurance Contracts | ||
Surety Bonds and Letters of Credit | ||
Outstanding letters of credit | 44.5 | |
Revenue Bonds | ||
Surety Bonds and Letters of Credit | ||
Outstanding letters of credit | $ 3.3 |
SEGMENT REPORTING - NARRATIVE (
SEGMENT REPORTING - NARRATIVE (Details) - Total Sales - Customer Concentration - customer | 12 Months Ended | |||
Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | Dec. 31, 2023 | |
Two Customers | ||||
Concentration risk | ||||
Number of customers | 2 | |||
Home Depot | ||||
Concentration risk | ||||
Percent of sales | 17% | 15% | 16% | |
Lowes | ||||
Concentration risk | ||||
Percent of sales | 12% | 11% | 10% |
SEGMENT REPORTING - Information
SEGMENT REPORTING - Information By Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Sep. 24, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Segment Reporting | |||||||||||
Net sales | $ 1,524,353 | $ 1,827,637 | $ 2,043,918 | $ 1,822,476 | $ 1,913,697 | $ 2,322,855 | $ 2,900,874 | $ 2,489,313 | $ 7,218,384 | $ 9,626,739 | $ 8,636,134 |
Interest expense | 12,842 | 13,910 | 13,814 | ||||||||
Amortization expense | 21,327 | 19,499 | 13,948 | ||||||||
Depreciation | 110,563 | 94,063 | 84,184 | ||||||||
Segment earnings before income taxes | 671,241 | 934,816 | 726,336 | ||||||||
Segment assets | 4,017,797 | 3,672,073 | 4,017,797 | 3,672,073 | 3,245,271 | ||||||
Capital expenditures | 180,382 | 174,124 | 151,166 | ||||||||
Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
Net sales | (1,013,813) | (1,003,078) | (838,254) | ||||||||
Corporate | |||||||||||
Segment Reporting | |||||||||||
Net sales | 3,726 | 5,940 | 8,748 | ||||||||
Interest expense | 15,744 | 15,045 | 13,519 | ||||||||
Amortization expense | 1,520 | 514 | 214 | ||||||||
Depreciation | 30,084 | 27,618 | 25,765 | ||||||||
Segment earnings before income taxes | 28,793 | (2,695) | (8,555) | ||||||||
Segment assets | 1,452,133 | 875,253 | 1,452,133 | 875,253 | 579,890 | ||||||
Capital expenditures | 16,707 | 5,054 | 40,622 | ||||||||
Retail | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
Net sales | 2,886,515 | 3,650,639 | 3,418,337 | ||||||||
Interest expense | 111 | 177 | 98 | ||||||||
Amortization expense | 4,566 | 4,131 | 2,780 | ||||||||
Depreciation | 23,943 | 19,898 | 16,955 | ||||||||
Segment earnings before income taxes | 167,955 | 150,165 | 124,790 | ||||||||
Segment assets | 781,005 | 889,417 | 781,005 | 889,417 | 844,189 | ||||||
Capital expenditures | 52,756 | 55,806 | 40,408 | ||||||||
Retail | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
Net sales | 565,325 | 392,740 | 214,400 | ||||||||
Packaging | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
Net sales | 1,838,200 | 2,394,681 | 2,148,142 | ||||||||
Interest expense | 7 | (2) | 12 | ||||||||
Amortization expense | 8,849 | 6,925 | 6,093 | ||||||||
Depreciation | 32,996 | 28,191 | 26,219 | ||||||||
Segment earnings before income taxes | 193,563 | 333,087 | 264,958 | ||||||||
Segment assets | 798,623 | 885,878 | 798,623 | 885,878 | 741,672 | ||||||
Capital expenditures | 52,694 | 55,129 | 42,652 | ||||||||
Packaging | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
Net sales | 83,549 | 78,409 | 85,954 | ||||||||
Construction | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
Net sales | 2,161,059 | 3,143,868 | 2,698,434 | ||||||||
Interest expense | 1 | ||||||||||
Amortization expense | 2,904 | 3,358 | 3,525 | ||||||||
Depreciation | 19,546 | 15,364 | 13,151 | ||||||||
Segment earnings before income taxes | 243,357 | 397,446 | 264,238 | ||||||||
Segment assets | 621,762 | 712,837 | 621,762 | 712,837 | 736,157 | ||||||
Capital expenditures | 56,793 | 54,167 | 22,344 | ||||||||
Construction | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
Net sales | 96,729 | 110,523 | 82,026 | ||||||||
All Other | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
Net sales | 328,884 | 431,611 | 362,473 | ||||||||
Interest expense | (3,020) | (1,310) | 184 | ||||||||
Amortization expense | 3,488 | 4,571 | 1,336 | ||||||||
Depreciation | 3,994 | 2,992 | 2,094 | ||||||||
Segment earnings before income taxes | 37,573 | 56,813 | 80,905 | ||||||||
Segment assets | $ 364,274 | $ 308,688 | 364,274 | 308,688 | 343,363 | ||||||
Capital expenditures | 1,432 | 3,968 | 5,140 | ||||||||
All Other | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
Net sales | $ 268,210 | $ 421,406 | $ 455,874 |
SEGMENT REPORTING - Informati_2
SEGMENT REPORTING - Information Regarding Principal Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Sep. 24, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Revenues and Long-Lived Assets | |||||||||||
Net sales | $ 1,524,353 | $ 1,827,637 | $ 2,043,918 | $ 1,822,476 | $ 1,913,697 | $ 2,322,855 | $ 2,900,874 | $ 2,489,313 | $ 7,218,384 | $ 9,626,739 | $ 8,636,134 |
Long-Lived Tangible Assets | 967,790 | 897,761 | 967,790 | 897,761 | 734,630 | ||||||
United States | |||||||||||
Revenues and Long-Lived Assets | |||||||||||
Net sales | 6,935,431 | 9,254,676 | 8,395,737 | ||||||||
Long-Lived Tangible Assets | 779,748 | 770,921 | 779,748 | 770,921 | 679,757 | ||||||
Foreign | |||||||||||
Revenues and Long-Lived Assets | |||||||||||
Net sales | 282,953 | 372,063 | 240,397 | ||||||||
Long-Lived Tangible Assets | $ 188,042 | $ 126,840 | $ 188,042 | $ 126,840 | $ 54,873 |
SEGMENT REPORTING - Gross Sales
SEGMENT REPORTING - Gross Sales by Major Product Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Sep. 24, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Revenue | |||||||||||
Net sales | $ 1,524,353 | $ 1,827,637 | $ 2,043,918 | $ 1,822,476 | $ 1,913,697 | $ 2,322,855 | $ 2,900,874 | $ 2,489,313 | $ 7,218,384 | $ 9,626,739 | $ 8,636,134 |
Value-Added | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 68.40% | 63.40% | 68.40% | 63.40% | 59.70% | ||||||
Commodity-Based Sales | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 31.60% | 36.60% | 31.60% | 36.60% | 40.30% | ||||||
Intersegment net sales | |||||||||||
Revenue | |||||||||||
Net sales | $ (1,013,813) | $ (1,003,078) | $ (838,254) | ||||||||
Corporate | |||||||||||
Revenue | |||||||||||
Net sales | $ 3,726 | $ 5,940 | $ 8,748 | ||||||||
Corporate | Value-Added | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 27.50% | 44.30% | 27.50% | 44.30% | 67.90% | ||||||
Corporate | Commodity-Based Sales | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 72.50% | 55.70% | 72.50% | 55.70% | 32.10% | ||||||
Retail | Value-Added | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 50.50% | 44.90% | 50.50% | 44.90% | 43.20% | ||||||
Retail | Commodity-Based Sales | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 49.50% | 55.10% | 49.50% | 55.10% | 56.80% | ||||||
Retail | Operating Segments | |||||||||||
Revenue | |||||||||||
Net sales | $ 2,886,515 | $ 3,650,639 | $ 3,418,337 | ||||||||
Retail | Operating Segments | Deckorators | |||||||||||
Revenue | |||||||||||
Net sales | 309,419 | 326,011 | 248,765 | ||||||||
Retail | Operating Segments | ProWood | |||||||||||
Revenue | |||||||||||
Net sales | 2,494,362 | 3,152,950 | 3,013,620 | ||||||||
Retail | Operating Segments | UFP Edge | |||||||||||
Revenue | |||||||||||
Net sales | 81,603 | 168,190 | 148,927 | ||||||||
Retail | Operating Segments | Other Retail | |||||||||||
Revenue | |||||||||||
Net sales | 1,131 | 3,488 | 7,025 | ||||||||
Retail | Intersegment net sales | |||||||||||
Revenue | |||||||||||
Net sales | $ 565,325 | $ 392,740 | $ 214,400 | ||||||||
Packaging | Value-Added | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 77% | 72% | 77% | 72% | 67.70% | ||||||
Packaging | Commodity-Based Sales | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 23% | 28% | 23% | 28% | 32.30% | ||||||
Packaging | Operating Segments | |||||||||||
Revenue | |||||||||||
Net sales | $ 1,838,200 | $ 2,394,681 | $ 2,148,142 | ||||||||
Packaging | Operating Segments | Structural Packaging | |||||||||||
Revenue | |||||||||||
Net sales | 1,225,204 | 1,716,021 | 1,554,857 | ||||||||
Packaging | Operating Segments | PalletOne | |||||||||||
Revenue | |||||||||||
Net sales | 530,642 | 628,969 | 574,466 | ||||||||
Packaging | Operating Segments | Protective Packaging | |||||||||||
Revenue | |||||||||||
Net sales | 82,354 | 49,691 | 18,819 | ||||||||
Packaging | Intersegment net sales | |||||||||||
Revenue | |||||||||||
Net sales | $ 83,549 | $ 78,409 | $ 85,954 | ||||||||
Construction | Value-Added | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 83.20% | 77.20% | 83.20% | 77.20% | 73% | ||||||
Construction | Commodity-Based Sales | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 16.80% | 22.80% | 16.80% | 22.80% | 27% | ||||||
Construction | Operating Segments | |||||||||||
Revenue | |||||||||||
Net sales | $ 2,161,059 | $ 3,143,868 | $ 2,698,434 | ||||||||
Construction | Operating Segments | Factory Built | |||||||||||
Revenue | |||||||||||
Net sales | 718,773 | 1,181,837 | 1,098,905 | ||||||||
Construction | Operating Segments | Site Built | |||||||||||
Revenue | |||||||||||
Net sales | 977,129 | 1,361,607 | 1,190,393 | ||||||||
Construction | Operating Segments | Commercial | |||||||||||
Revenue | |||||||||||
Net sales | 265,079 | 336,298 | 259,360 | ||||||||
Construction | Operating Segments | Concrete Forming | |||||||||||
Revenue | |||||||||||
Net sales | 200,078 | 264,126 | 149,776 | ||||||||
Construction | Intersegment net sales | |||||||||||
Revenue | |||||||||||
Net sales | $ 96,729 | $ 110,523 | $ 82,026 | ||||||||
All Other | Value-Added | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 83.80% | 76.30% | 83.80% | 76.30% | 74.70% | ||||||
All Other | Commodity-Based Sales | |||||||||||
Revenue | |||||||||||
Portion of total net sales (as a percent) | 16.20% | 23.70% | 16.20% | 23.70% | 25.30% | ||||||
All Other | Operating Segments | |||||||||||
Revenue | |||||||||||
Net sales | $ 328,884 | $ 431,611 | $ 362,473 | ||||||||
All Other | Intersegment net sales | |||||||||||
Revenue | |||||||||||
Net sales | $ 268,210 | $ 421,406 | $ 455,874 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Sep. 24, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | |||||||||||
Length of fiscal year | 364 days | 371 days | 364 days | ||||||||
NET SALES | $ 1,524,353 | $ 1,827,637 | $ 2,043,918 | $ 1,822,476 | $ 1,913,697 | $ 2,322,855 | $ 2,900,874 | $ 2,489,313 | $ 7,218,384 | $ 9,626,739 | $ 8,636,134 |
Gross profit | 296,142 | 364,400 | 400,067 | 358,329 | 357,470 | 450,176 | 503,452 | 478,363 | 1,418,938 | 1,789,461 | 1,406,967 |
NET EARNINGS | 103,908 | 134,183 | 150,788 | 125,578 | 131,879 | 172,101 | 207,853 | 193,131 | 514,457 | 704,964 | 552,364 |
Net earnings attributable to controlling interest | $ 103,447 | $ 134,035 | $ 150,761 | $ 126,069 | $ 132,589 | $ 167,241 | $ 203,118 | $ 189,703 | $ 514,312 | $ 692,651 | $ 535,640 |
EARNINGS PER SHARE - BASIC (USD per share) | $ 1.65 | $ 2.14 | $ 2.40 | $ 2.01 | $ 2.12 | $ 2.68 | $ 3.24 | $ 3.01 | $ 8.21 | $ 11.05 | $ 8.61 |
EARNINGS PER SHARE - DILUTED (USD per share) | $ 1.62 | $ 2.10 | $ 2.36 | $ 1.98 | $ 2.10 | $ 2.66 | $ 3.23 | $ 3 | $ 8.07 | $ 10.97 | $ 8.59 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 30, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Sep. 24, 2022 | Jun. 25, 2022 | Mar. 26, 2022 | Dec. 30, 2023 | Dec. 31, 2022 | Dec. 25, 2021 | |
Pay vs Performance Disclosure | |||||||||||
Net Income (Loss) | $ 103,447 | $ 134,035 | $ 150,761 | $ 126,069 | $ 132,589 | $ 167,241 | $ 203,118 | $ 189,703 | $ 514,312 | $ 692,651 | $ 535,640 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |