Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 28, 2019 | Feb. 01, 2020 | Jun. 28, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 28, 2019 | ||
Entity File Number | 0-22684 | ||
Entity Registrant Name | UNIVERSAL FOREST PRODUCTS, 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 | ||
Trading Symbol | UFPI | ||
Security Exchange Name | NASDAQ | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 61,416,053 | ||
Current Fiscal Year End Date | --12-28 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000912767 | ||
Amendment Flag | false | ||
Entity Public Float | $ 2,198,105,632 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 168,336 | $ 27,316 |
Restricted cash | 330 | 882 |
Investments | 18,527 | 14,755 |
Accounts receivable, net | 364,027 | 343,450 |
Inventories: | ||
Raw materials | 236,283 | 271,871 |
Finished goods | 250,591 | 284,349 |
Total inventories | 486,874 | 556,220 |
Refundable income taxes | 13,272 | 14,130 |
Other current assets | 41,706 | 38,525 |
TOTAL CURRENT ASSETS | 1,093,072 | 995,278 |
DEFERRED INCOME TAXES | 2,763 | 2,668 |
RESTRICTED INVESTMENTS | 16,214 | 13,267 |
RIGHT OF USE ASSETS | 80,167 | |
OTHER ASSETS | 24,884 | 8,662 |
GOODWILL | 229,536 | 224,117 |
INDEFINITE-LIVED INTANGIBLE ASSETS | 7,354 | 7,360 |
OTHER INTANGIBLE ASSETS, NET | 48,313 | 41,486 |
PROPERTY, PLANT AND EQUIPMENT: | ||
Land and improvements | 125,097 | 120,324 |
Building and improvements | 253,589 | 239,906 |
Machinery and equipment | 467,963 | 419,115 |
Furniture and fixtures | 16,972 | 16,960 |
Construction in progress | 21,342 | 18,340 |
PROPERTY, PLANT AND EQUIPMENT,GROSS | 884,963 | 814,645 |
Less accumulated depreciation and amortization | (497,789) | (459,935) |
PROPERTY, PLANT AND EQUIPMENT, NET | 387,174 | 354,710 |
TOTAL ASSETS | 1,889,477 | 1,647,548 |
CURRENT LIABILITIES: | ||
Cash overdraft | 27,367 | |
Accounts payable | 142,479 | 136,901 |
Accrued liabilities: | ||
Compensation and benefits | 141,892 | 104,109 |
Other | 51,572 | 41,645 |
Current portion of lease liability | 15,283 | |
Current portion of long-term debt | 2,816 | 148 |
TOTAL CURRENT LIABILITIES | 354,042 | 310,170 |
LONG-TERM DEBT | 160,867 | 202,130 |
LEASE LIABILITY | 64,884 | |
DEFERRED INCOME TAXES | 22,880 | 15,687 |
OTHER LIABILITIES | 29,071 | 30,877 |
TOTAL LIABILITIES | 631,744 | 558,864 |
Controlling interest shareholders' equity: | ||
Preferred stock, no par value; shares authorized 1,000,000; issued and outstanding, none | ||
Common stock, $1 par value; shares authorized 80,000,000; issued and outstanding, 61,408,589 and 60,883,749 | 61,409 | 60,884 |
Additional paid-in capital | 192,173 | 178,540 |
Retained earnings | 995,022 | 839,917 |
Accumulated other comprehensive income | (4,889) | (5,938) |
Total controlling interest shareholders' equity | 1,243,715 | 1,073,403 |
Noncontrolling interest | 14,018 | 15,281 |
TOTAL SHAREHOLDERS' EQUITY | 1,257,733 | 1,088,684 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,889,477 | $ 1,647,548 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 28, 2019 | Dec. 29, 2018 |
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) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 61,408,589 | 60,883,749 |
Common stock, shares outstanding (in shares) | 61,408,589 | 60,883,749 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
NET SALES | $ 4,416,009 | $ 4,489,180 | $ 3,941,182 |
COST OF GOODS SOLD | 3,730,491 | 3,896,286 | 3,398,356 |
GROSS PROFIT | 685,518 | 592,894 | 542,826 |
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 439,047 | 392,235 | 362,220 |
NET (GAIN) LOSS ON DISPOSITION OF ASSETS AND IMPAIRMENT OF ASSETS | 1,565 | (6,604) | (863) |
EARNINGS FROM OPERATIONS | 244,906 | 207,263 | 181,469 |
INTEREST EXPENSE | 8,700 | 8,893 | 6,218 |
INTEREST INCOME | (1,945) | (1,371) | (731) |
UNREALIZED LOSS (GAIN) ON INVESTMENTS AND OTHER | (2,523) | 1,888 | (25) |
NON-OPERATING (INCOME)/EXPENSE | 4,232 | 9,410 | 5,462 |
EARNINGS BEFORE INCOME TAXES | 240,674 | 197,853 | 176,007 |
INCOME TAXES | 58,270 | 45,441 | 51,967 |
NET EARNINGS | 182,404 | 152,412 | 124,040 |
LESS NET EARNINGS ATTRIBUTABLE TO NONCONTROLLING INTEREST | (2,754) | (3,814) | (4,528) |
NET EARNINGS ATTRIBUTABLE TO CONTROLLING INTEREST | $ 179,650 | $ 148,598 | $ 119,512 |
EARNINGS PER SHARE - BASIC (USD per share) | $ 2.91 | $ 2.41 | $ 1.95 |
EARNINGS PER SHARE - DILUTED (USD per share) | $ 2.91 | $ 2.40 | $ 1.94 |
OTHER COMPREHENSIVE INCOME: | |||
NET EARNINGS | $ 182,404 | $ 152,412 | $ 124,040 |
OTHER COMPREHENSIVE GAIN (LOSS) | 1,513 | (5,076) | 6,130 |
COMPREHENSIVE INCOME | 183,917 | 147,336 | 130,170 |
LESS COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTEREST | (3,218) | (3,873) | (4,884) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO CONTROLLING INTEREST | $ 180,699 | $ 143,463 | $ 125,286 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Earnings | Noncontrolling Interest | Total |
Beginning balance at Dec. 31, 2016 | $ 61,026 | $ 144,649 | $ 649,135 | $ (5,630) | $ 11,286 | $ 860,466 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 119,512 | 4,528 | 124,040 | |||
Foreign currency translation adjustment | 5,070 | 356 | 5,426 | |||
Unrealized gain (loss) on investment | 704 | 704 | ||||
Distributions to noncontrolling interest | (4,032) | (4,032) | ||||
Additional purchases of noncontrolling interest | 2,409 | 2,409 | ||||
Cash dividends | (19,607) | (19,607) | ||||
Issuance of shares under employee stock purchase plans | 24 | 637 | 661 | |||
Issuance of shares under stock grant programs | 429 | 5,769 | 6,198 | |||
Issuance of shares under deferred compensation plans | 159 | (159) | ||||
Repurchase of shares | (446) | 297 | (12,828) | (12,977) | ||
Expense associated with share-based compensation arrangements | 3,618 | 3,618 | ||||
Accrued expense under deferred compensation plans | 7,117 | 7,117 | ||||
Ending balance at Dec. 30, 2017 | 61,192 | 161,928 | 736,212 | 144 | 14,547 | 974,023 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 148,598 | 3,814 | 152,412 | |||
Foreign currency translation adjustment | (4,973) | 59 | (4,914) | |||
Unrealized gain (loss) on investment & foreign currency | 947 | (1,109) | (162) | |||
Distributions to noncontrolling interest | (3,139) | (3,139) | ||||
Cash dividends | (22,072) | (22,072) | ||||
Issuance of shares under employee stock purchase plans | 38 | 988 | 1,026 | |||
Issuance of shares under stock grant programs | 348 | 4,827 | 5,175 | |||
Issuance of shares under deferred compensation plans | 167 | (167) | ||||
Repurchase of shares | (861) | (23,768) | (24,629) | |||
Expense associated with share-based compensation arrangements | 3,379 | 3,379 | ||||
Accrued expense under deferred compensation plans | 7,585 | 7,585 | ||||
Ending balance at Dec. 29, 2018 | 60,884 | 178,540 | 839,917 | (5,938) | 15,281 | 1,088,684 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net earnings | 179,650 | 2,754 | 182,404 | |||
Foreign currency translation adjustment | 568 | 464 | 1,032 | |||
Unrealized gain (loss) on investment & foreign currency | 481 | 481 | ||||
Distributions to noncontrolling interest | (2,143) | (2,143) | ||||
Additional purchases of noncontrolling interest | (4,737) | (2,338) | (7,075) | |||
Cash dividends | (24,549) | (24,549) | ||||
Issuance of shares under employee stock purchase plans | 34 | 1,059 | 1,093 | |||
Issuance of shares under stock grant programs | 310 | 5,654 | 4 | 5,968 | ||
Issuance of shares under deferred compensation plans | 181 | (181) | ||||
Expense associated with share-based compensation arrangements | 3,843 | 3,843 | ||||
Accrued expense under deferred compensation plans | 7,995 | 7,995 | ||||
Ending balance at Dec. 28, 2019 | $ 61,409 | $ 192,173 | $ 995,022 | $ (4,889) | $ 14,018 | $ 1,257,733 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 6 Months Ended | 12 Months Ended | |||||||
Dec. 28, 2019 | Jun. 29, 2019 | Dec. 29, 2018 | Jun. 30, 2018 | Dec. 30, 2017 | Jul. 01, 2017 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Increase (Decrease) in Stockholders' Equity | |||||||||
Cash dividends per share - semiannually (USD per share) | $ 0.200 | $ 0.200 | $ 0.180 | $ 0.180 | $ 0.170 | $ 0.150 | |||
Issuance of shares under employee stock plans (in shares) | 33,647 | 37,794 | 23,691 | ||||||
Issuance of shares under stock grant programs (in shares) | 309,628 | 348,208 | 428,622 | ||||||
Issuance of shares under deferred compensation plans (in shares) | 181,565 | 166,528 | 159,108 | ||||||
Repurchase of shares (in shares) | 0 | 860,669 | 445,740 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net earnings | $ 182,404 | $ 152,412 | $ 124,040 |
Adjustments to reconcile net earnings to net cash from operating activities: | |||
Depreciation | 60,494 | 54,949 | 48,536 |
Amortization of intangibles | 6,325 | 6,393 | 4,860 |
Expense associated with share-based and grant compensation arrangements | 4,007 | 3,574 | 3,805 |
Deferred income taxes (credits) | 7,176 | 857 | (8,629) |
Unrealized (gain) loss on investments | (2,523) | 1,888 | (25) |
Net (gain) loss on disposition of assets and impairment of assets | 1,565 | (6,604) | (863) |
Changes in: | |||
Accounts receivable | (16,872) | (8,512) | (30,787) |
Inventories | 73,120 | (84,304) | (49,262) |
Accounts payable and cash overdraft | (24,132) | (5,213) | 21,159 |
Accrued liabilities and other | 57,727 | 1,245 | 23,749 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 349,291 | 116,685 | 136,583 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (84,933) | (95,862) | (71,116) |
Proceeds from sale of property, plant and equipment | 1,777 | 38,373 | 2,919 |
Acquisitions and purchases of non-controlling interest, net of cash received | (39,122) | (54,017) | (60,587) |
Investment in life insurance contracts | (15,253) | ||
Purchases of investments | (13,352) | (13,338) | (13,518) |
Proceeds from sale of investments | 9,828 | 3,678 | 5,103 |
Other | (982) | (66) | (460) |
NET CASH USED IN INVESTING ACTIVITIES | (142,037) | (121,232) | (137,659) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Borrowings under revolving credit facilities | 422,057 | 732,370 | 758,287 |
Repayments under revolving credit facilities | (460,537) | (748,496) | (722,725) |
Borrowings of debt | 927 | 8,525 | |
Repayment of debt | (3,136) | (5,540) | (13,347) |
Issuance of long-term debt | 75,000 | ||
Proceeds from issuance of common stock | 1,093 | 1,026 | 660 |
Dividends paid to shareholders | (24,549) | (22,072) | (19,607) |
Distributions to noncontrolling interest | (2,216) | (3,139) | (4,032) |
Repurchase of common stock | (24,629) | (12,977) | |
Other | 20 | (1,054) | (31) |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (67,268) | 4,393 | (5,247) |
Effect of exchange rate changes on cash | 482 | (464) | 650 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 140,468 | (618) | (5,673) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 28,198 | 28,816 | 34,489 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | $ 168,666 | $ 28,198 | $ 28,816 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - SUPPLEMENTAL - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH: | |||
Cash and cash equivalents, beginning of period | $ 27,316 | $ 28,339 | $ 34,091 |
Restricted cash, beginning of period | 882 | 477 | 398 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, BEGINNING OF YEAR | 28,198 | 28,816 | 34,489 |
Cash and cash equivalents, end of period | 168,336 | 27,316 | 28,339 |
Restricted cash, end of period | 330 | 882 | 477 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH, END OF PERIOD | 168,666 | 28,198 | 28,816 |
SUPPLEMENTAL INFORMATION: | |||
Interest paid | 8,763 | 8,860 | 6,020 |
Income taxes paid | 50,224 | 51,578 | 56,663 |
NON-CASH FINANCING ACTIVITIES: | |||
Common stock issued under deferred compensation plans | $ 6,229 | $ 5,837 | $ 5,116 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 28, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES OPERATIONS We primarily design, manufacture and market wood and wood-alternative products for national home centers and other retailers, structural lumber and other products for the manufactured housing industry, engineered wood components for residential and commercial construction, customized interior fixtures used in a variety of retail stores, commercial and other structures, and specialty wood packaging, components and other packing materials for various industries. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships. In addition, we consolidate any entity which we own 50% or more and exercise control. Intercompany transactions and balances have been eliminated. 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 2019, 2018, and 2017 relate to the fiscal years ended December 28, 2019, December 29, 2018, and December 30, 2017, respectively. Fiscal years 2019, 2018, and 2017 were 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. 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. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends ASC 825-10, Financial Instruments – Overall, this ASU changes the treatment for available-for-sale equity investments by recognizing unrealized fair value changes directly in net income and no longer in other comprehensive income. For public entities, the amendment is effective for fiscal years beginning after December 15, 2017. The ASU was adopted during fiscal 2018 with a cumulative-effect adjustment to retained earnings of $0.9 million at the beginning of 2018. The available-for-sale equity securities balance at December 28, 2019, and December 29, 2018 was $14.7 million and $11.0 million, respectively. The adoption of ASU No. 2016-01 resulted in an unrealized gain recorded as a non-operating income of $2.5 million in 2019, and an unrealized loss of $1.9 million recorded in non-operating expense in 2018. 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, 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 28, 2019: Allowance for possible losses on accounts receivable $ 2,601 $ 39,481 $ (37,642) $ 4,440 Year Ended December 29, 2018: Allowance for possible losses on accounts receivable $ 2,424 $ 38,963 $ (38,786) $ 2,601 Year Ended December 30, 2017: Allowance for possible losses on accounts receivable $ 2,845 $ 28,102 $ (28,523) $ 2,424 * 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 $7.4 million and $5.5 million as of December 28, 2019 and December 29, 2018, respectively. All amounts are expected to be collected within 18 months. Concentration of accounts receivable related to our largest customer totaled $42.8 million and $44.5 million as of December 28, 2019 and December 29, 2018, respectively. In June 2016, the FASB issued ASU 2016-13, Financial Instrument-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which changes the current incurred loss model to a forward looking expected credit loss model for most financial assets, such as trade and other receivables, loans and other instruments. The ASU is effective for fiscal years beginning December 15, 2019, with early adoption permitted. Entities are required to apply the provisions of the standard through a cumulative-effect adjustment to retained earnings as of effective date. The Company evaluated the impact of the standard on its consolidated statements, particularly over accounts receivable, and does not expect the standard to have a material impact on its consolidated financial statements and disclosures, accounting processes, and internal controls. INVENTORIES Inventories are stated at the lower of cost or market. The cost of inventories includes raw materials, direct labor, and manufacturing overhead. Cost is determined on a weighted average basis. Raw materials consist primarily of unfinished wood products 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 $20.2 million as of December 28, 2019 and $16.8 million as of December 29, 2018. 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. Amortization of assets held under capital 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 the carrying amount of these assets are recoverable based upon a discounted cash flow and market approach analysis, no impairment was recognized. Our annual testing date for evaluating goodwill and indefinite-lived intangible asset impairment is the first day of the Company’s fourth fiscal quarter for all reporting units. Additionally, the Company reviews various triggering events throughout the year to ensure that a mid-year impairment analysis is not 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 28, 2019 and December 29, 2018. 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) to certain third parties. As of December 28, 2019, Ardellis had 42 such contracts in place. Reserves associated with these contracts were $5.7 million at December 28, 2019 and $4.9 million at December 29, 2018 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 On May 28, 2014, the FASB issued ASU No. 2014-09 (Accounting Standard Codification 606), Revenue from Contracts with Customers. Topic 606 supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition, and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. The Company completed the new revenue recognition standard assessment and determined that there was no material impact to our consolidated financial statements, aside from additional required disclosures, thus no Within the three markets (retail, industrial, and construction) that the Company operates, there are a variety of written and oral contracts that are utilized to generate revenue from the sale of wood, wood composite and other products. 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 3rd party. Installation revenue is recognized upon completion, which is typically 2-3 days after receipt. If it is determined to utilize a 3rd party for installation, the party will act as an agent to the Company until completion of the installation. Installation revenue represents an immaterial share of the Company’s total sales. The Company utilizes rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on historical and anticipated customer sales and reduce recognized revenues accordingly. We believe that there will not be significant changes to our estimates of variable consideration. Our estimates of variable consideration are considered not constrained as the likelihood and magnitude of a significant reversal are not probable. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, the volume returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized. Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred related to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced related to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent. Our construction contracts are generally entered into with a fixed price and completion of the projects and performance obligations can range from 6 to 18 months in duration. Therefore, our operating results are impacted by, among many other things, labor rates and commodity costs. Invoices are issued routinely throughout the projects’ life and payments are primarily due 45-60 days after invoice date. During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist. The following table presents our gross revenues disaggregated by revenue source: (in thousands) December 28, December 29, Market Classification 2019 2018 % Change FOB Shipping Point Revenue $ 4,348,757 $ 4,440,098 -2.1% Construction Contract Revenue 143,426 125,651 14.1% Total Gross Sales 4,492,183 4,565,749 -1.6% Sales Allowances (76,174) (76,569) -0.5% Total Net Sales $ 4,416,009 $ 4,489,180 -1.6% In 2019, $100.5 million and $42.9 million of our construction contract revenue was attributable to our North and West segments, respectively. Construction contract revenue is primarily made up of site-built and framing customers. The following table presents the balances of percentage-of-completion accounts on December 28, 2019 and December 29, 2018 which are included in other current assets and other accrued liabilities, respectively (in thousands): December 28, December 29, 2019 2018 Cost and Earnings in Excess of Billings $ 4,690 $ 6,945 Billings in Excess of Cost and Earnings 6,622 3,245 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. EARNINGS PER SHARE The computation of earnings per share (“EPS”) is as follows (in thousands), which incorporate the retroactive effect of the Company’s 3 for 1 stock split: December 28, December 29, December 30, 2019 2018 2017 Numerator: Net earnings attributable to controlling interest $ 179,650 $ 148,598 $ 119,512 Adjustment for earnings allocated to non-vested restricted common stock (4,496) (3,396) (2,225) Net earnings for calculating EPS $ 175,154 $ 145,202 $ 117,287 Denominator: Weighted average shares outstanding 61,649 61,762 61,416 Adjustment for non-vested restricted common stock (1,543) (1,411) (1,143) Shares for calculating basic EPS 60,106 60,351 60,273 Effect of dilutive restricted common stock 24 82 90 Shares for calculating diluted EPS 60,130 60,433 60,363 Net earnings per share: Basic $ 2.91 $ 2.41 $ 1.95 Diluted $ 2.91 $ 2.40 $ 1.94 No 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. 28, 2019 | |
FAIR VALUE | B. FAIR VALUE We apply the provisions of ASC 820, Fair Value Measurements and Disclosures, December 28, 2019 December 29, 2018 Quoted Prices with Quoted Prices with Prices in Other Prices with Prices in Other Prices with Active Observable Unobservable Active Observable Unobservable Markets Inputs Inputs Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Money market funds $ 162,626 $ 562 $ — $ 163,188 $ 56 $ 5,267 — $ 5,323 Fixed income funds 234 15,495 — 15,729 3,387 9,738 — 13,125 Equity securities 9,734 — — 9,734 7,262 — — 7,262 Alternative investments — — 1,941 1,941 — — 1,756 1,756 Mutual funds: — Domestic stock funds 3,308 — — 3,308 2,846 — — 2,846 International stock funds 1,741 — — 1,741 937 — — 937 Target funds 281 — — 281 237 — — 237 Bond funds 850 — — 850 796 — — 796 Alternative funds 1,747 — — 1,747 1,318 — — 1,318 Total mutual funds 7,927 — — 7,927 6,134 — — 6,134 Total $ 180,521 $ 16,057 1,941 $ 198,519 $ 16,839 $ 15,005 1,756 $ 33,600 Assets at fair value $ 180,521 $ 16,057 1,941 $ 198,519 $ 16,839 $ 15,005 1,756 $ 33,600 From the assets measured at fair value as of December 28, 2019, listed in the table above, $162.6 million of money market funds are held in Cash and Cash Equivalents, $18.5 million of mutual funds, equity securities, and alternative investments are held in Investments, $1.1 million of money market and mutual funds are held in Other Assets for our deferred compensation plan, and $15.7 million of fixed income funds and $0.6 million of money market funds are held in Restricted Investments. We maintain money market, mutual funds, bonds, and/or stocks in our non-qualified deferred compensation plan and 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 2018, we purchased a private real estate income trust which is valued as a Level 3 asset and is categorized as an “Alternative Investment.” In accordance with our investment policy, our wholly-owned company, Ardellis Insurance Ltd. ("Ardellis"), maintains an investment portfolio, totaling $34.3 million as of December 28, 2019, consisting of domestic and international stocks, alternative investments, and fixed income bonds. Ardellis’ available for sale investment portfolio, including funds held with the State of Michigan, consists of the following (in thousands): December 28, 2019 December 29,2018 Unrealized Unrealized Cost Gain/(Loss) Fair Value Cost Gain/(Loss) Fair Value Fixed Income $ 15,376 $ 353 $ 15,729 $ 13,301 $ (176) $ 13,125 Equity 7,958 1,776 9,734 7,141 121 7,262 Mutual Funds 6,568 284 6,852 5,815 (567) 5,248 Alternative Investments 1,811 130 1,941 1,722 34 1,756 Total $ 31,713 $ 2,543 $ 34,256 $ 27,979 $ (588) $ 27,391 Our fixed income investments consist of a blend of US Government and Agency bonds and investment grade corporate bonds with varying maturities. Our equity investments consist of small, mid, and large cap growth and value funds, as well as international equity. Our alternative investments consist of the private real estate income trust which is valued as a Level 3 asset. The net pre-tax unrealized gain was $2.5 million for the year ended December 28, 2019. Carrying amounts above are recorded in the investments and restricted investments line items within the balance sheet as of December 28, 2019. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 28, 2019 | |
BUSINESS COMBINATIONS | C. BUSINESS COMBINATIONS We completed the following business combinations in fiscal 2019 and 2018, which were accounted for using the purchase method (in thousands). Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment September 16, 2019 $12,422 $ 7,464 $ 4,958 North Pallet USA, LLC ("Pallet USA") A manufacturer and recycler of wood pallet and crating products in the Midwest. Pallet USA had annual sales of approximately $18 million. The acquisition of Pallet USA allows us to expand our capacity to manufacture wood-based industrial packaging products and offer new services to customers in the Midwest. August 12, 2019 $17,809 $ 8,089 $ 9,720 West Northwest Painting, Inc. ("Northwest") A supplier of pre-painted building materials, including composite lap siding, soffit, panels and trim to the Western U.S. Northwest had annual sales of approximately $14 million. The acquisition of Northwest will expand our capacity to produce coated siding and trim for customers in the Northwest and Mountain West regions. May 1, 2019 $7,168 $ 6,180 $ 988 North Wolverine Wood Products, Inc. ("Wolverine") A manufacturer of wood panel components for furniture, store fixtures and case goods. Wolverine had annual sales of approximately million. The acquisition of Wolverine allows us to expand capacity to produce value-added wood components for customers in the Midwest. October 22, 2018 $15,115 $ 8,592 $ 6,523 North Pak-Rite, LTD ("Pak-Rite") A designer and manufacturer of packaging for high-value products, such as medical, aerospace and automation equipment. Pak-Rite had annual sales of approximately million. The acquisition of Pak-Rite allows us to grow our portfolio of packaging products and customer markets, and expand our presence in this region. Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment July 31, 2018 $1,016 $ 250 $ 766 West The Pallet Place, LLC ("Pallet Place") A manufacturer and distributor of total packaging solutions in timber, crates, skids, and pallets. Pallet Place had annual sales of approximately million. The acquisition of Pallet Place allows us to increase our industrial business and creates operating leverage by consolidating with another regional operation. June 1, 2018 $25,866 $ 9,496 $ 16,370 South North American Container Corporation ("NACC") A manufacturer of structural packaging products, including steel, corrugated and hardwood packaging. NACC had annual sales of approximately million. The acquisition of NACC allows us to enhance our presence in this region, expand our product offering, and serve customers more cost effectively. April 9, 2018 $3,890 $ 2,235 $ 1,655 West Fontana Wood Products ("Fontana") A manufacturer and distributor of lumber and trusses in the Southern California region. Fontana had annual sales of approximately million. The acquisition of Fontana allows us to expand our manufactured housing business and creates operating leverage by consolidating with another regional operation. April 3, 2018 $1,347 $ 1,287 $ 60 All Other Expert Packaging ("Expert") A manufacturer and distributor of total packaging solutions in timber, crates, pallets, and skids. Expert had annual sales of approximately million. The acquisition of Expert allows us to make progress on our goal of becoming a global provider of packaging solutions. January 23, 2018 $2,942 $ 850 $ 2,092 West Spinner Wood Products, LLC ("Spinner") A manufacturer and distributor of agricultural bin and various industrial packaging. Spinner had annual sales of approximately million. The acquisition of Spinner allows us to expand our industrial packaging product offering and creates operating leverage by consolidating with other regional operations. January 15, 2018 $5,784 $ 50 $ 5,734 North Great Northern Lumber, LLC A manufacturer of industrial products as well as serving the concrete forming market in the Chicago area. Great Northern Lumber had annual sales of approximately million. The acquisition of Great Northern Lumber enables us to expand our concrete forming product offering and regional coverage. The intangible assets for each acquisition were finalized and allocated to their respective identifiable intangible asset and goodwill accounts during 2019, except for our Wolverine, Northwest, and Pallet USA acquisitions. In aggregate, acquisitions not consolidated with other operations contributed approximately $70.3 million in revenue and $4.1 million in operating profit during 2019. At December 28, 2019, the amounts assigned to major intangible classes for the business combinations mentioned above are as follows (in thousands): Non- Intangibles - Compete Customer Tax Agreements Relationships Tradename Goodwill Deductible Pallet USA $ — $ 1,400 * $ 1,898 * $ 4,166 * $ 7,464 Northwest — 4,500 * 1,000 * 2,589 * 8,089 Wolverine — 3,232 * 864 * 2,084 * 6,180 Pak-Rite 30 3,750 1,060 3,752 8,592 Pallet Place — 250 — — 250 NACC — 2,810 770 5,916 9,496 Fontana — 2,235 — — 2,235 Expert Packaging 221 809 257 — — Spinner 850 — — — 850 Great Northern Lumber 50 — — — 50 *(estimate) The business combinations mentioned above were not significant to our operating results individually or in aggregate, and thus pro forma results for 2019 and 2018 are not presented. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 28, 2019 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | D. GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the net carrying amount of goodwill by reporting segment for the years ended December 28, 2019 and December 29, 2018, are as follows (in thousands): North South West All Other Total Balance as of December 30, 2017 51,127 46,738 87,730 27,049 212,644 2018 Acquisitions 4,292 8,996 — — 13,288 Foreign Exchange, Net (365) — — (1,450) (1,815) Balance as of December 29, 2018 55,054 55,734 87,730 25,599 224,117 2019 Acquisitions 5,710 (3,080) 2,589 — 5,219 Foreign Exchange, Net 182 — — 18 200 Balance as of December 28, 2019 $ 60,946 $ 52,654 $ 90,319 $ 25,617 $ 229,536 Indefinite-lived intangible assets totaled $7.4 million as of December 28, 2019 and December 29, 2018 related to the idX, International, and Consumer Products reporting units which is included in the All Other reportable segment. The following amounts were included in other amortizable intangible assets, net as of December 28, 2019 and December 29, 2018 (in thousands): 2019 2018 Accumulated Accumulated Assets Amortization Net Value Assets Amortization Net Value Non-compete agreements $ 5,092 $ (2,262) $ 2,830 $ 10,232 $ (5,517) $ 4,715 Customer relationships 48,084 (10,079) 38,005 40,307 (6,843) 33,464 Licensing agreements 4,589 (4,368) 221 4,589 (3,909) 680 Patents 914 (421) 493 792 (284) 508 Tradename 7,966 (1,202) 6,764 2,879 (760) 2,119 Total $ 66,645 $ (18,332) $ 48,313 $ 58,799 $ (17,313) $ 41,486 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 3 to 15 years 9.7 years Customer relationship 5 to 15 years 10.5 years Licensing agreements 10 years 10 years Tradename (amortizable) 3 to 15 years 11.5 years Amortization expense of intangibles totaled $6.3 million, $6.4 million and $4.9 million in 2019, 2018 and 2017, respectively. The estimated amortization expense for intangibles for each of the five succeeding fiscal years is as follows (in thousands): 2020 $ 6,095 2021 5,572 2022 5,243 2023 4,497 2024 3,772 Thereafter 23,134 Total $ 48,313 |
DEBT
DEBT | 12 Months Ended |
Dec. 28, 2019 | |
DEBT | E. DEBT On June 14, 2018, we entered into an unsecured Note Purchase Agreement (the "Agreement") under which we issued our 4.20% Series 2018 C Senior Notes, due June 14, 2028, in the aggregate principal amount of $40 million and our 4.27% Series 2018 D Senior Notes, due June 14, 2030, in the aggregate principal amount of $35 million. Proceeds from the sale of the Series C Senior Notes and Series D Senior Notes were used to pay down our revolving credit facility. On December 17, 2012, we entered into an unsecured Note Purchase Agreement (the "Agreement") under which we issued our 3.89% Series 2012 A Senior Notes, due December 17, 2022, in the aggregate principal amount of $35 million and our 3.98% Series 2012 B Senior Notes, due December 17, 2024, in the aggregate principal amount of $40 million. Proceeds from the sale of the Series A Senior Notes and Series B Senior Notes were used to repay amounts due on our existing Series 2002-A Senior Notes, Tranche B totaling $40 million and our revolving credit facility. On November 1, 2018, we entered into a five-year, $375 million unsecured revolving credit facility with a syndicate of U.S. banks led by JPMorgan Chase Bank, N.A., as administrative agent and Wells Fargo Bank, N.A., as syndication agent. The facilities include up to $40 million which may be advanced in the form of letters of credit, and up to $100 million (U.S. dollar equivalent) which may be advanced in Canadian dollars, Australian dollars, pounds Sterling, Euros and such other foreign currencies as may subsequently be agreed upon among the parties. This facility replaced our $295 million unsecured revolving credit facility. Cash borrowings are charged interest based upon an index selected by the Company, plus a margin that is determined based upon the index selected and upon the financial performance of the Company and certain of its subsidiaries. The Company is charged a facility fee on the entire amount of the lending commitment, at a per annum rate ranging from 12.5 to 30.0 Outstanding letters of credit extended on our behalf on December 28, 2019 and December 29, 2018 aggregated $37.3 million and $30.3 million; respectively, which includes approximately $9.8 million related to industrial development revenue bonds. The Company had an outstanding balance of $4.0 million and $42.5 million, which includes foreign subsidiary borrowings, on its revolver at December 28, 2019, and December 29, 2018, respectively. After considering letters of credit, the Company had $361.2 million and $322.7 million in remaining availability on its revolver on December 28, 2019, and December 29, 2018, respectively. Additionally, we have $150 million in availability under a "shelf agreement" for long term debt with a current lender. Letters of credit have one year terms and include an automatic renewal clause. The letters of credit related to industrial development revenue bonds are charged an annual interest rate of 112.5 basis points, based upon our financial performance. The letters of credit related to workers’ compensation are charged an annual interest rate of 75 basis points. Long-term debt obligations are summarized as follows on December 28, 2019 and December 29, 2018 (amounts in thousands): 2019 2018 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 A, due on December 17, 2022, interest payable semi-annually at 3.89% 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 Revolving credit facility totaling $375 million due on November 1, 2023, interest payable monthly at a floating rate (2.54% on December 28, 2019 and 3.39% on December 29, 2018) — 39,010 Foreign subsidiary borrowings under revolving credit facility, due on November 1, 2023, interest payable monthly at a floating rate (1.88% on December 28, 2019 and 2.94% on December 29, 2018) 3,976 3,480 Series 1999 Industrial Development Revenue Bonds, due on August 1, 2029, interest payable monthly at a floating rate (1.14% on December 28, 2019 and 1.94% on December 29, 2018) 3,300 3,300 Series 2000 Industrial Development Revenue Bonds, due on October 1, 2020, interest payable monthly at a floating rate (1.57% on December 28, 2019 and 2.00% on December 29, 2018) 2,700 2,700 Series 2002 Industrial Development Revenue Bonds, due on December 1, 2022, interest payable monthly at a floating rate (1.79% on December 28, 2019 and 1.99% on December 29, 2018) 3,700 3,700 Capital leases and foreign affiliate debt 174 311 163,850 202,501 Less current portion (2,816) (148) Less debt issuance costs (167) (223) Long-term portion $ 160,867 $ 202,130 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 28, 2019 and December 29, 2018. On December 28, 2019, the principal maturities of long-term debt and capital lease obligations are as follows (in thousands): 2020 $ 2,816 2021 58 2022 38,700 2023 3,976 2024 40,000 Thereafter 78,300 Total $ 163,850 On December 28, 2019, the estimated fair value of our long-term debt, including the current portion, was $170.8 million, which was $7.0 million more 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. 28, 2019 | |
LEASES | F. LEASES In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) No. 2016-02, “Leases (Topic 842)” (ASU 2016-02). Under ASU 2016-02, an entity will be required to recognize assets and liabilities for the rights and obligations created by leases on the entity’s balance sheet for both finance and operating leases. For leases with a term of 12 months or less, an entity can elect to not recognize lease assets and lease liabilities and expense the lease over a straight-line basis for the term of the lease. ASU 2016-02 requires new disclosures that depict the amount, timing, and uncertainty of cash flows pertaining to an entity’s leases. Companies are required to adopt the new standard for annual and interim periods beginning after December 15, 2018. Early adoption of ASU 2016-02 is permitted. The FASB decided to amend certain aspects of its new leasing standard in an attempt to provide a relief from implementation costs. Specifically, entities may elect not to restate their comparative periods in the period of adoption when transitioning to the new standard. Upon adoption of ASC 842 on December 30, 2018, the Company recognized right-of-use assets and lease liabilities no We elected the package of practical hindsight 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 income statement as of December 28, 2019. As of December 28, 2019, we have no leases that have not yet commenced that would significantly impact the rights, obligations, and financial position of the Company. There were no lease transactions between related parties as of December 28, 2019. The rates implicit in our leases are primarily not readily available. To determine the discount rate used to present value the lease payments, the Company utilized the 7-year treasury note rate plus a blend of rate spreads associated with our revolver and 10-12-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 28, 2019 are as follows (in thousands): Operating Leases Operating lease cost $ 20,771 Short-term lease cost 110 Variable lease cost 1,484 Sublease income (676) Total lease cost $ 21,689 The amounts paid for operating leases, included in the measurement of lease liabilities, were $20 million for year ended December 28, 2019. In addition, right-of-use assets obtained in exchange for new operating leases liabilities were approximately $33.4 million for year ended December 29, 2019. Future minimum payments under non-cancelable operating leases on December 28, 2019 are as follows (in thousands): Operating Leases 2020 $ 17,633 2021 15,074 2022 12,624 2023 10,434 2024 7,848 Thereafter 29,115 Total minimum lease payments $ 92,728 Less present value discount (12,561) Total lease liability $ 80,167 Rent expense was approximately $29.9 million, $28.1 million, and $24.2 million in 2019, 2018, and 2017, respectively. During the first quarter of 2018, the Company completed a sale and leaseback transaction related to one facility in Medley, Florida. The sale price for the property was approximately $36 million and created a $7 million pre-tax gain, which was entirely recognized in 2018. The Company leased back the facility for two years as it executes its long-term plan for Florida and the Southeast region. As of December 28, 2019, the weighted average lease term for operating leases is 7 .29 |
DEFERRED COMPENSATION
DEFERRED COMPENSATION | 12 Months Ended |
Dec. 28, 2019 | |
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 will commence upon their retirement. 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. In the event cash values are not sufficient to fund such obligations, the program allows us to reduce benefit payments to such amounts as may be funded by accumulated cash values. Premiums payments, deferred compensation obligations, and accrued interest payments were funded through policy and premium loans provided by the insurer. The deferred compensation liabilities and related cash surrender value of life insurance policies totaled $2.0 million on December 29, 2018 and December 30, 2017 and are sheet as of December 28, 2019, was $0.3 million. Also, during 2019, the Company increased its investment in life insurance contracts by $15.3 million to $16.6 million by extinguishing the previously mentioned policy and premium loans. 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. 28, 2019 | |
COMMON STOCK | H. COMMON STOCK We maintain and administer our shareholder approved Employee Stock Purchase Plan ("Stock Purchase Plan"). The 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 Directors’ Retainer Stock Plan ("Stock Retainer Plan"). The Stock Retainer Plan allows eligible members of the Board of Directors to defer the cash portion of their retainer and committee fees 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 shares is increased by the amount of dividends paid on the Company’s common stock. We recognized expense for this plan of $1.8 million in 2019, $1.7 million in 2018, and $1.7 million in 2017. 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 and other stock-based awards. On October 18, 2017, the Board of Directors approved a three-for-one split of the Company's outstanding shares of common stock effected as a stock dividend. On November 14, 2017, shareholders of record as of October 31, 2017, received two additional shares for each share held on the record date. There is no Below is a summary of common stock issuances for 2019 and 2018: December 28, 2019 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 34 $ 32.47 Shares issued under the employee stock gift program 4 35.68 Shares issued under the director retainer stock program 5 38.44 Shares issued under the long term stock incentive plan 211 30.83 Shares issued under the executive stock match grants 109 31.57 Forfeitures (19) - Total shares issued under stock grant programs 310 $ 31.25 Shares issued under the deferred compensation plans 181 $ 34.31 Total 525 $ 32.35 December 29, 2018 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 38 $ 35.58 Shares issued under the employee stock gift program 3 33.56 Shares issued under the director retainer stock program 101 17.17 Shares issued under the long term stock incentive plan 164 35.16 Shares issued under the executive stock match grants 94 32.94 Forfeitures (14) - Total shares issued under stock grant programs 348 $ 29.37 Shares issued under the deferred compensation plans 167 $ 36.98 Total 553 $ 31.78 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 31, 2016 791,532 19.32 4.8 1.51 years Granted 388,248 32.03 Vested (141,111) 12.71 Forfeited (5,043) 30.14 Nonvested at December 30, 2017 1,033,626 24.24 7.1 1.31 years Granted 247,068 36.52 Vested (107,865) 18.11 Forfeited (12,750) 24.19 Nonvested at December 29, 2018 1,160,079 23.32 7.6 1.12 years Granted 318,496 32.60 Vested (224,894) 23.42 Forfeited (50,786) 24.18 Nonvested at December 28, 2019 1,202,895 $ 29.68 $ 7.9 0.86 years Under the Stock Purchase Plan and LTSIP, we recognized share-based compensation expense of $4.0 million, $3.6 million, and $3.6 million and the related total income tax benefits of $0.8 million, $0.7 million, and $1.0 million in 2019, 2018 and 2017, respectively. In 2019, 2018 and 2017, cash received from share issuances under our plans was $1.1 million, $1.0 million and $0.7 million, respectively. On November 14, 2001, the Board of Directors approved a share repurchase program (which succeeded a previous program) allowing us to repurchase up to 2.5 million shares of our common stock. On October 14, 2010, our Board authorized an additional 2 million shares to be repurchased under our existing share repurchase program. We repurchased no |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 28, 2019 | |
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 2019, 2018, and 2017, on a discretionary basis, totaling $6.5 million, $3.4 million, and $4.8 million respectively. For years 2019 and 2017, hourly employee contributions included additional matched contributions of $2.6 million and $1.9 million for 2019 and 2017, 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. The Company maintains a retirement plan for certain officers of the Company, excluding the Company’s CEO, (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, benefits totaling 150% of the officer’s highest base salary in the three years immediately preceding separation from service plus health care benefits for a specified period of time if certain eligibility requirements are met. Approximately $10.6 million and $9.1 million are accrued in “Other Liabilities” for this plan at December 28, 2019 and December 29, 2018, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 28, 2019 | |
INCOME TAXES | J. INCOME TAXES Income tax provisions for the years ended December 28, 2019, December 29, 2018, and December 30, 2017 are summarized as follows (in thousands): 2019 2018 2017 Currently Payable: Federal $ 35,267 $ 31,492 $ 44,413 State and local 10,071 7,544 8,579 Foreign 5,834 5,527 6,240 51,172 44,563 59,232 Net Deferred: Federal 6,895 2,965 (7,681) State and local 805 (522) (864) Foreign (602) (1,565) 1,280 7,098 878 (7,265) $ 58,270 $ 45,441 $ 51,967 The components of earnings before income taxes consist of the following: 2019 2018 2017 U.S. $ 220,532 $ 180,261 $ 151,395 Foreign 20,142 17,592 24,612 Total $ 240,674 $ 197,853 $ 176,007 The effective income tax rates are different from the statutory federal income tax rates for the following reasons: 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % State and local taxes (net of federal benefits) 3.9 3.8 3.0 Effect of noncontrolling owned interest in earnings of partnerships (0.1) (0.1) (0.2) Manufacturing deduction n/a n/a (2.5) Tax credits, including foreign tax credit (1.3) (1.6) (2.0) Change in uncertain tax positions reserve (0.1) 0.1 0.4 Other permanent differences 0.5 0.6 (0.1) Other, net 0.3 (0.7) (0.6) Impact of Tax Act and reduction of corporate tax rate (a) n/a (0.1) (3.5) Effective income tax rate 24.2 % 23.0 % 29.5 % (a) On December 22, 2017, the U.S government enacted comprehensive tax legislation commonly referred to as the Tax Cut and Jobs Act (the “Tax Act”). The Tax Act makes broad and complex changes to the U.S. tax code, including, but not limited to reducing the U.S. federal corporate tax rate from 35 percent to 21 percent, effective January 1, 2018. Shortly after the Tax Act was enacted, the SEC issued accounting guidance, which provided a one-year measurement period during which a company may complete its accounting for the impacts of the Tax Act. As a result of the U.S. federal corporate rate reduction, the Company recorded a tax benefit of $6.1 million for the period ending December 30, 2017, and an additional tax benefit of $0.3 million for the period ending December 29, 2018. Temporary differences which give rise to deferred income tax assets and (liabilities) on December 28, 2019 and December 29, 2018 are as follows (in thousands): 2019 2018 Employee benefits $ 22,420 $ 20,914 Lease liability 20,255 — Net operating loss carryforwards 6,411 6,520 Foreign subsidiary capital loss carryforward 519 504 Other tax credits 620 586 Inventory 993 1,090 Reserves on receivables 1,266 802 Accrued expenses 2,318 1,593 Other, net 3,159 2,785 Gross deferred income tax assets 57,961 34,794 Valuation allowance (2,447) (2,707) Deferred income tax assets 55,514 32,087 Depreciation (34,001) (24,881) Intangibles (21,375) (20,225) Right of use assets (20,255) — Other, net — — Deferred income tax liabilities (75,631) (45,106) Net deferred income tax liability $ (20,117) $ (13,019) As of December 28, 2019, the company had federal, state and foreign net operating loss carryforwards of $6.4 million and state tax credit carryforwards of $0.6 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 2019 - 2023 $ — $ 173 $ — $ — $ 620 2024 - 2028 — 285 1,279 — — 2029 - 2033 2,124 748 213 — — 2034 - 2038 28 854 — — — Thereafter — 243 464 — — Total $ 2,152 $ 2,303 $ 1,956 $ — $ 620 As of December 28, 2019, we believe that it is more likely than not that the benefit from certain state and foreign NOL carryforwards as well as certain state tax credit carryforwards will not be realized. In recognition of this risk, we have provided a valuation allowance against various NOL and tax credit carryforwards. 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. |
ACCOUNTING FOR UNCERTAINTY IN I
ACCOUNTING FOR UNCERTAINTY IN INCOME | 12 Months Ended |
Dec. 28, 2019 | |
ACCOUNTING FOR UNCERTAINTY IN INCOME | 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): 2019 2018 2017 Gross unrecognized tax benefits beginning of year $ 4,378 $ 4,000 $ 3,381 Increase in tax positions for prior years (129) (366) 4 Increase in tax positions due to acquisitions — — — Increase in tax positions for current year 768 1,326 1,107 Settlements with taxing authorities — — (2) Lapse in statute of limitations (851) (582) (490) Gross unrecognized tax benefits end of year $ 4,166 $ 4,378 $ 4,000 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 $0.5 million, $0.5 million, and $0.7 million at December 28, 2019, December 29, 2018, and December 30, 2017, respectively. 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 2016. A number of routine state and local examinations are currently ongoing. Due to the potential for resolution of state examinations, and the expiration of various statutes of limitation, and new positions that may be taken, it is reasonably possible that the amounts of unrecognized tax benefits could change in the next twelve months is $0.9 million. |
COMMITMENTS, CONTINGENCIES, AND
COMMITMENTS, CONTINGENCIES, AND GUARANTEES | 12 Months Ended |
Dec. 28, 2019 | |
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. We own and operate a number of facilities throughout the United States that chemically treat lumber products. In connection with the ownership and operation of these and other real properties, and the disposal or treatment of hazardous or toxic substances, we may, under various federal, state, and local environmental laws, ordinances, and regulations, be potentially liable for removal and remediation costs, as well as other potential costs, damages, and expenses. Environmental reserves, calculated with no discount rate, have been established to cover remediation activities at wood preservation facilities in Stockertown, PA; Elizabeth City, NC; and Auburndale, FL. In addition, a reserve was established for our facility in Thornton, CA to remove certain lead containing materials which existed on the property at the time of purchase. On a consolidated basis, we have reserved approximately $2.0 million and $2.1 million on December 28, 2019 and December 29, 2018, respectively, representing the estimated costs to complete future remediation efforts. These amounts have not been reduced by an insurance receivable. In addition, on December 28, 2019, 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 28, 2019, we had outstanding purchase commitments on commenced capital projects of approximately $33.8 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, some of which are no longer in business. While we do not warrant these products, we have received claims as a distributor of these products when the manufacturer no longer exists or has the ability to pay. Historically, these costs have not had a material effect on our consolidated financial statements. As part of our operations, we supply building materials and labor to site-built construction projects or we jointly bid on contracts with framing companies for such projects. In some instances we are required to post payment and performance bonds to 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 28, 2019, we had approximately $10.8 million in outstanding payment and performance bonds for open projects. We had approximately $9.2 million in payment and performance bonds outstanding for completed projects which are still under warranty. On December 28, 2019, we had outstanding letters of credit totaling $37.3 million, primarily related to certain insurance contracts and industrial development revenue bonds described further below. In lieu of cash deposits, we provide irrevocable letters of credit in favor of our insurers to guarantee our performance under certain insurance contracts. We currently have irrevocable letters of credit outstanding totaling approximately $27.5 million for these types of insurance arrangements. We have reserves recorded on our balance sheet, in accrued liabilities, that reflect our expected future liabilities under these insurance arrangements. We are required to provide irrevocable letters of credit in favor of the bond trustees for all industrial development revenue bonds that have been issued. These letters of credit guarantee principal and interest payments to the bondholders. We currently have irrevocable letters of credit outstanding totaling approximately $9.8 million related to our outstanding industrial development revenue bonds. These letters of credit have varying terms but may be renewed at the option of the issuing banks. Certain wholly owned domestic subsidiaries have guaranteed the indebtedness of Universal Forest Products, Inc. in certain debt agreements, including the Series 2012 Senior Notes, the Series 2018 Senior Notes, and our revolving credit facility. The maximum exposure of these guarantees is limited to the indebtedness outstanding under these debt arrangements and this exposure will expire concurrent with the expiration of the debt agreements. We did not enter into any new guarantee arrangements during 2019 which would require us to recognize a liability on our balance sheet. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 28, 2019 | |
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. The Company operates manufacturing, treating and distribution facilities throughout North America, Europe, Asia and Australia, but primarily in the United States. The Company manages the operations of its individual locations primarily through a geographic reporting structure under which each location is included in a region and regions are included in our North, South, West, and International divisions. The exceptions to this geographic reporting and management structure are (a) the Company’s Alternative Materials Division, which offers a portfolio of non-wood products and distributes those products nation-wide and is accounted for as an operating segment within the All Other segment, (b) the Company’s distribution unit (referred to as UFPD) which distributes a variety of products to the manufactured housing industry and is accounted for as a reporting unit within the North segment, and (c) idX division, which designs, manufactures, and installs customized interior fixtures and is accounted for within the All Other segment. With respect to the facilities in the north, south, and west segments, these facilities generally supply the three markets the Company serves nationally - Retail, Industrial, and Construction. Also, substantially all of our facilities support customers in the immediate geographical region surrounding the facility. One customer, The Home Depot, accounted for approximately 19% of our total sales in fiscal 2019, 2018 and 2017. Our Alternative Materials, International, and idX divisions have been included in the “All Other” column of the table below. The “Corporate” column includes unallocated administrative costs and certain incentive compensation expense. 2019 All North South West Other Corporate Total Net sales to outside customers $ 1,302,067 $ 936,964 $ 1,548,098 $ 628,880 $ — $ 4,416,009 Intersegment net sales 57,675 81,875 52,601 225,913 — 418,064 Interest expense (income) (36) — 108 (1,949) 10,577 8,700 Amortization expense 1,217 1,200 2,049 1,859 — 6,325 Depreciation expense 13,624 9,310 17,062 10,254 10,244 60,494 Segment earnings from operations 95,728 64,517 118,444 8,913 (42,696) 244,906 Segment assets 396,010 249,053 485,674 513,081 245,659 1,889,477 Capital expenditures 21,292 18,051 19,682 23,576 2,332 84,933 2018 All North South West Other Corporate Total Net sales to outside customers $ 1,279,459 $ 1,024,747 $ 1,599,274 $ 585,700 $ — $ 4,489,180 Intersegment net sales 56,682 76,297 56,004 235,905 — 424,888 Interest expense 58 (6) 197 (1,486) 10,130 8,893 Amortization expense 830 1,292 1,998 2,273 — 6,393 Depreciation expense 12,062 8,244 14,836 10,341 9,466 54,949 Segment earnings from operations 66,239 60,049 103,357 6,779 (29,161) 207,263 Segment assets 386,483 266,503 496,939 395,727 101,896 1,647,548 Capital expenditures 17,820 9,185 26,024 39,168 3,665 95,862 2017 All North South West Other Corporate Total Net sales to outside customers $ 1,133,656 $ 837,370 $ 1,417,924 $ 552,232 $ — $ 3,941,182 Intersegment net sales 67,161 74,566 83,245 167,568 — 392,540 Interest expense 4 160 293 (473) 6,234 6,218 Amortization expense 559 607 1,723 1,971 — 4,860 Depreciation expense 10,511 6,880 14,116 8,586 8,443 48,536 Segment earnings from operations 61,326 46,646 82,465 17,296 (26,264) 181,469 Segment assets 351,270 240,661 462,311 356,264 54,171 1,464,677 Capital expenditures 23,026 12,286 23,212 9,865 2,727 71,116 Beginning on January 1, 2020, the Company will be re-organized around the markets it serves rather than geography. The business segments will primarily align with the following markets: UFP Retail, UFP Construction and UFP Industrial. We believe this change in segmentation will, among other factors, allow for a more specialized and consistent approach among all UFP operations, more efficient use of resources and capital, and quicker introduction of new products and services. Information regarding principal geographic areas was as follows (in thousands): 2019 2018 2017 Long-Lived Long-Lived Long-Lived Tangible Tangible Tangible Net Sales Assets Net Sales Assets Net Sales Assets United States $ 4,308,618 $ 469,605 $ 4,382,356 $ 342,326 $ 3,821,366 $ 313,976 Foreign 107,391 36,878 106,824 34,312 119,816 30,380 Total $ 4,416,009 $ 506,483 $ 4,489,180 $ 376,638 $ 3,941,182 $ 344,356 Sales generated in Canada and Mexico are primarily to customers in the United States of America. The following table presents, for the periods indicated, our gross sales (in thousands) by major product classification. Year Ended December 28, December 29, December 30, 2019 2018 2017 Value-Added Sales Trusses – residential, modular and manufactured housing $ 438,621 $ 421,996 $ 368,591 Fencing 180,772 180,783 187,905 Decking and railing – composite, wood and other 310,311 261,778 244,910 Turn-key framing and installed sales 159,307 151,397 149,520 Industrial packaging and components 676,214 591,314 471,262 Engineered wood products (eg. LVL; i-joist) 86,954 83,222 76,507 In-store fixtures 274,580 252,341 260,174 Manufactured brite and other lumber 68,725 92,255 109,582 Wall panels 64,357 69,889 61,226 Outdoor DIY products (eg. stakes; landscape ties) 124,586 128,711 110,327 Construction and building materials (eg. door packages; drywall) 320,603 314,965 265,048 Lattice – plastic and wood 70,448 62,598 48,736 Manufactured brite and other panels 79,122 94,469 81,143 Siding, trim and moulding 111,230 107,873 85,016 Hardware 16,069 16,742 21,218 Manufactured treated lumber 92,277 96,450 69,844 Other 30,160 11,946 10,632 Total Value-Added Sales $ 3,104,336 $ 2,938,729 $ 2,621,641 Commodity-Based Sales Non-manufactured brite and other lumber 594,534 700,143 545,430 Non-manufactured treated lumber 525,030 585,628 523,245 Non-manufactured brite and other panels 205,678 278,898 265,909 Non-manufactured treated panels 39,340 42,958 36,913 Other 23,266 19,393 13,065 Total Commodity-Based Sales $ 1,387,848 $ 1,627,020 $ 1,384,562 Total Gross Sales $ 4,492,184 $ 4,565,749 $ 4,006,203 Sales Allowances (76,175) (76,569) (65,021) Total Net Sales $ 4,416,009 $ 4,489,180 $ 3,941,182 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 28, 2019 | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | N. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) The following table sets forth selected financial information for all of the quarters, consisting of 13 weeks during the years ended December 28, 2019 and December 29, 2018, respectively, (in thousands, except per share data): First Second Third Fourth 2019 2018 2019 2018 2019 2018 2019 2018 Net sales $ 1,015,125 $ 993,857 $ 1,239,817 $ 1,294,440 $ 1,163,026 $ 1,212,702 $ 998,041 $ 988,181 Gross profit 154,267 130,889 186,726 165,689 187,270 158,673 157,255 137,643 Net earnings 36,002 33,582 55,145 45,130 52,581 42,068 38,676 31,632 Net earnings attributable to controlling interest 35,540 32,833 54,515 44,044 51,859 41,219 37,736 30,502 Basic earnings per share 0.58 0.53 0.88 0.71 0.84 0.67 0.61 0.50 Diluted earnings per share 0.58 0.53 0.88 0.71 0.84 0.66 0.61 0.50 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 28, 2019 | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our accounts and those of our wholly-owned and majority-owned subsidiaries and partnerships. In addition, we consolidate any entity which we own 50% or more and exercise control. Intercompany transactions and balances have been eliminated. |
NONCONTROLLING INTEREST IN SUBSIDIAIRIES | 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 2019, 2018, and 2017 relate to the fiscal years ended December 28, 2019, December 29, 2018, and December 30, 2017, respectively. Fiscal years 2019, 2018, and 2017 were 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. |
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. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which amends ASC 825-10, Financial Instruments – Overall, this ASU changes the treatment for available-for-sale equity investments by recognizing unrealized fair value changes directly in net income and no longer in other comprehensive income. For public entities, the amendment is effective for fiscal years beginning after December 15, 2017. The ASU was adopted during fiscal 2018 with a cumulative-effect adjustment to retained earnings of $0.9 million at the beginning of 2018. The available-for-sale equity securities balance at December 28, 2019, and December 29, 2018 was $14.7 million and $11.0 million, respectively. The adoption of ASU No. 2016-01 resulted in an unrealized gain recorded as a non-operating income of $2.5 million in 2019, and an unrealized loss of $1.9 million recorded in non-operating expense in 2018. |
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, 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 28, 2019: Allowance for possible losses on accounts receivable $ 2,601 $ 39,481 $ (37,642) $ 4,440 Year Ended December 29, 2018: Allowance for possible losses on accounts receivable $ 2,424 $ 38,963 $ (38,786) $ 2,601 Year Ended December 30, 2017: Allowance for possible losses on accounts receivable $ 2,845 $ 28,102 $ (28,523) $ 2,424 * 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 $7.4 million and $5.5 million as of December 28, 2019 and December 29, 2018, respectively. All amounts are expected to be collected within 18 months. Concentration of accounts receivable related to our largest customer totaled $42.8 million and $44.5 million as of December 28, 2019 and December 29, 2018, respectively. In June 2016, the FASB issued ASU 2016-13, Financial Instrument-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which changes the current incurred loss model to a forward looking expected credit loss model for most financial assets, such as trade and other receivables, loans and other instruments. The ASU is effective for fiscal years beginning December 15, 2019, with early adoption permitted. Entities are required to apply the provisions of the standard through a cumulative-effect adjustment to retained earnings as of effective date. The Company evaluated the impact of the standard on its consolidated statements, particularly over accounts receivable, and does not expect the standard to have a material impact on its consolidated financial statements and disclosures, accounting processes, and internal controls. |
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost or market. The cost of inventories includes raw materials, direct labor, and manufacturing overhead. Cost is determined on a weighted average basis. Raw materials consist primarily of unfinished wood products 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 $20.2 million as of December 28, 2019 and $16.8 million as of December 29, 2018. |
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. Amortization of assets held under capital 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 the carrying amount of these assets are recoverable based upon a discounted cash flow and market approach analysis, no impairment was recognized. Our annual testing date for evaluating goodwill and indefinite-lived intangible asset impairment is the first day of the Company’s fourth fiscal quarter for all reporting units. Additionally, the Company reviews various triggering events throughout the year to ensure that a mid-year impairment analysis is not 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 28, 2019 and December 29, 2018. 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) to certain third parties. As of December 28, 2019, Ardellis had 42 such contracts in place. Reserves associated with these contracts were $5.7 million at December 28, 2019 and $4.9 million at December 29, 2018 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 On May 28, 2014, the FASB issued ASU No. 2014-09 (Accounting Standard Codification 606), Revenue from Contracts with Customers. Topic 606 supersedes the revenue recognition requirements in Accounting Standards Codification Topic 605, Revenue Recognition, and requires the recognition of revenue when promised goods or services are transferred to customers in an amount that reflects the considerations to which the entity expects to be entitled to in exchange for those goods or services. The Company completed the new revenue recognition standard assessment and determined that there was no material impact to our consolidated financial statements, aside from additional required disclosures, thus no Within the three markets (retail, industrial, and construction) that the Company operates, there are a variety of written and oral contracts that are utilized to generate revenue from the sale of wood, wood composite and other products. 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 3rd party. Installation revenue is recognized upon completion, which is typically 2-3 days after receipt. If it is determined to utilize a 3rd party for installation, the party will act as an agent to the Company until completion of the installation. Installation revenue represents an immaterial share of the Company’s total sales. The Company utilizes rebates, credits, discounts and/or cash-based incentives with certain customers which are accounted for as variable consideration. We estimate these amounts based on historical and anticipated customer sales and reduce recognized revenues accordingly. We believe that there will not be significant changes to our estimates of variable consideration. Our estimates of variable consideration are considered not constrained as the likelihood and magnitude of a significant reversal are not probable. The allocation of these costs are applied at the invoice level and recognized in conjunction with revenue. Additionally, the volume returns and refunds are estimated on a historical and expected basis which is a reduction of revenue recognized. Earnings on construction contracts are reflected in operations using over time accounting, under either cost to cost or units of delivery methods, depending on the nature of the business at individual operations, which is in accordance with ASC 606 as revenue is recognized when certain performance obligations are performed. Under over time accounting using the cost to cost method, revenues and related earnings on construction contracts are measured by the relationships of actual costs incurred related to the total estimated costs. Under over time accounting using the units of delivery method, revenues and related earnings on construction contracts are measured by the relationships of actual units produced related to the total number of units. Revisions in earnings estimates on the construction contracts are recorded in the accounting period in which the basis for such revisions becomes known. Projected losses on individual contracts are charged to operations in their entirety when such losses become apparent. Our construction contracts are generally entered into with a fixed price and completion of the projects and performance obligations can range from 6 to 18 months in duration. Therefore, our operating results are impacted by, among many other things, labor rates and commodity costs. Invoices are issued routinely throughout the projects’ life and payments are primarily due 45-60 days after invoice date. During the year, we update our estimated costs to complete our projects using current labor and commodity costs and recognize losses to the extent that they exist. The following table presents our gross revenues disaggregated by revenue source: (in thousands) December 28, December 29, Market Classification 2019 2018 % Change FOB Shipping Point Revenue $ 4,348,757 $ 4,440,098 -2.1% Construction Contract Revenue 143,426 125,651 14.1% Total Gross Sales 4,492,183 4,565,749 -1.6% Sales Allowances (76,174) (76,569) -0.5% Total Net Sales $ 4,416,009 $ 4,489,180 -1.6% In 2019, $100.5 million and $42.9 million of our construction contract revenue was attributable to our North and West segments, respectively. Construction contract revenue is primarily made up of site-built and framing customers. The following table presents the balances of percentage-of-completion accounts on December 28, 2019 and December 29, 2018 which are included in other current assets and other accrued liabilities, respectively (in thousands): December 28, December 29, 2019 2018 Cost and Earnings in Excess of Billings $ 4,690 $ 6,945 Billings in Excess of Cost and Earnings 6,622 3,245 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. |
EARNINGS PER SHARE | EARNINGS PER SHARE The computation of earnings per share (“EPS”) is as follows (in thousands), which incorporate the retroactive effect of the Company’s 3 for 1 stock split: December 28, December 29, December 30, 2019 2018 2017 Numerator: Net earnings attributable to controlling interest $ 179,650 $ 148,598 $ 119,512 Adjustment for earnings allocated to non-vested restricted common stock (4,496) (3,396) (2,225) Net earnings for calculating EPS $ 175,154 $ 145,202 $ 117,287 Denominator: Weighted average shares outstanding 61,649 61,762 61,416 Adjustment for non-vested restricted common stock (1,543) (1,411) (1,143) Shares for calculating basic EPS 60,106 60,351 60,273 Effect of dilutive restricted common stock 24 82 90 Shares for calculating diluted EPS 60,130 60,433 60,363 Net earnings per share: Basic $ 2.91 $ 2.41 $ 1.95 Diluted $ 2.91 $ 2.40 $ 1.94 No |
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. The Company operates manufacturing, treating and distribution facilities throughout North America, Europe, Asia and Australia, but primarily in the United States. The Company manages the operations of its individual locations primarily through a geographic reporting structure under which each location is included in a region and regions are included in our North, South, West, and International divisions. The exceptions to this geographic reporting and management structure are (a) the Company’s Alternative Materials Division, which offers a portfolio of non-wood products and distributes those products nation-wide and is accounted for as an operating segment within the All Other segment, (b) the Company’s distribution unit (referred to as UFPD) which distributes a variety of products to the manufactured housing industry and is accounted for as a reporting unit within the North segment, and (c) idX division, which designs, manufactures, and installs customized interior fixtures and is accounted for within the All Other segment. With respect to the facilities in the north, south, and west segments, these facilities generally supply the three markets the Company serves nationally - Retail, Industrial, and Construction. Also, substantially all of our facilities support customers in the immediate geographical region surrounding the facility. One customer, The Home Depot, accounted for approximately 19% of our total sales in fiscal 2019, 2018 and 2017. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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 28, 2019: Allowance for possible losses on accounts receivable $ 2,601 $ 39,481 $ (37,642) $ 4,440 Year Ended December 29, 2018: Allowance for possible losses on accounts receivable $ 2,424 $ 38,963 $ (38,786) $ 2,601 Year Ended December 30, 2017: Allowance for possible losses on accounts receivable $ 2,845 $ 28,102 $ (28,523) $ 2,424 * Includes accounts charged off, discounts given to customers and actual customer returns and allowances. |
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 | (in thousands) December 28, December 29, Market Classification 2019 2018 % Change FOB Shipping Point Revenue $ 4,348,757 $ 4,440,098 -2.1% Construction Contract Revenue 143,426 125,651 14.1% Total Gross Sales 4,492,183 4,565,749 -1.6% Sales Allowances (76,174) (76,569) -0.5% Total Net Sales $ 4,416,009 $ 4,489,180 -1.6% |
Schedule of Percentage of Completion Account Balances | The following table presents the balances of percentage-of-completion accounts on December 28, 2019 and December 29, 2018 which are included in other current assets and other accrued liabilities, respectively (in thousands): December 28, December 29, 2019 2018 Cost and Earnings in Excess of Billings $ 4,690 $ 6,945 Billings in Excess of Cost and Earnings 6,622 3,245 |
Schedule of Computation of earnings per share | The computation of earnings per share (“EPS”) is as follows (in thousands), which incorporate the retroactive effect of the Company’s 3 for 1 stock split: December 28, December 29, December 30, 2019 2018 2017 Numerator: Net earnings attributable to controlling interest $ 179,650 $ 148,598 $ 119,512 Adjustment for earnings allocated to non-vested restricted common stock (4,496) (3,396) (2,225) Net earnings for calculating EPS $ 175,154 $ 145,202 $ 117,287 Denominator: Weighted average shares outstanding 61,649 61,762 61,416 Adjustment for non-vested restricted common stock (1,543) (1,411) (1,143) Shares for calculating basic EPS 60,106 60,351 60,273 Effect of dilutive restricted common stock 24 82 90 Shares for calculating diluted EPS 60,130 60,433 60,363 Net earnings per share: Basic $ 2.91 $ 2.41 $ 1.95 Diluted $ 2.91 $ 2.40 $ 1.94 |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Assets measured at fair value | December 28, 2019 December 29, 2018 Quoted Prices with Quoted Prices with Prices in Other Prices with Prices in Other Prices with Active Observable Unobservable Active Observable Unobservable Markets Inputs Inputs Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Total (Level 1) (Level 2) (Level 3) Total Money market funds $ 162,626 $ 562 $ — $ 163,188 $ 56 $ 5,267 — $ 5,323 Fixed income funds 234 15,495 — 15,729 3,387 9,738 — 13,125 Equity securities 9,734 — — 9,734 7,262 — — 7,262 Alternative investments — — 1,941 1,941 — — 1,756 1,756 Mutual funds: — Domestic stock funds 3,308 — — 3,308 2,846 — — 2,846 International stock funds 1,741 — — 1,741 937 — — 937 Target funds 281 — — 281 237 — — 237 Bond funds 850 — — 850 796 — — 796 Alternative funds 1,747 — — 1,747 1,318 — — 1,318 Total mutual funds 7,927 — — 7,927 6,134 — — 6,134 Total $ 180,521 $ 16,057 1,941 $ 198,519 $ 16,839 $ 15,005 1,756 $ 33,600 Assets at fair value $ 180,521 $ 16,057 1,941 $ 198,519 $ 16,839 $ 15,005 1,756 $ 33,600 |
Available for sale investment portfolio | December 28, 2019 December 29,2018 Unrealized Unrealized Cost Gain/(Loss) Fair Value Cost Gain/(Loss) Fair Value Fixed Income $ 15,376 $ 353 $ 15,729 $ 13,301 $ (176) $ 13,125 Equity 7,958 1,776 9,734 7,141 121 7,262 Mutual Funds 6,568 284 6,852 5,815 (567) 5,248 Alternative Investments 1,811 130 1,941 1,722 34 1,756 Total $ 31,713 $ 2,543 $ 34,256 $ 27,979 $ (588) $ 27,391 |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Business Acquisitions Accounted for Using Purchase Method | We completed the following business combinations in fiscal 2019 and 2018, which were accounted for using the purchase method (in thousands). Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment September 16, 2019 $12,422 $ 7,464 $ 4,958 North Pallet USA, LLC ("Pallet USA") A manufacturer and recycler of wood pallet and crating products in the Midwest. Pallet USA had annual sales of approximately $18 million. The acquisition of Pallet USA allows us to expand our capacity to manufacture wood-based industrial packaging products and offer new services to customers in the Midwest. August 12, 2019 $17,809 $ 8,089 $ 9,720 West Northwest Painting, Inc. ("Northwest") A supplier of pre-painted building materials, including composite lap siding, soffit, panels and trim to the Western U.S. Northwest had annual sales of approximately $14 million. The acquisition of Northwest will expand our capacity to produce coated siding and trim for customers in the Northwest and Mountain West regions. May 1, 2019 $7,168 $ 6,180 $ 988 North Wolverine Wood Products, Inc. ("Wolverine") A manufacturer of wood panel components for furniture, store fixtures and case goods. Wolverine had annual sales of approximately million. The acquisition of Wolverine allows us to expand capacity to produce value-added wood components for customers in the Midwest. October 22, 2018 $15,115 $ 8,592 $ 6,523 North Pak-Rite, LTD ("Pak-Rite") A designer and manufacturer of packaging for high-value products, such as medical, aerospace and automation equipment. Pak-Rite had annual sales of approximately million. The acquisition of Pak-Rite allows us to grow our portfolio of packaging products and customer markets, and expand our presence in this region. Net Company Acquisition Intangible Tangible Operating Name Date Purchase Price Assets Assets Segment July 31, 2018 $1,016 $ 250 $ 766 West The Pallet Place, LLC ("Pallet Place") A manufacturer and distributor of total packaging solutions in timber, crates, skids, and pallets. Pallet Place had annual sales of approximately million. The acquisition of Pallet Place allows us to increase our industrial business and creates operating leverage by consolidating with another regional operation. June 1, 2018 $25,866 $ 9,496 $ 16,370 South North American Container Corporation ("NACC") A manufacturer of structural packaging products, including steel, corrugated and hardwood packaging. NACC had annual sales of approximately million. The acquisition of NACC allows us to enhance our presence in this region, expand our product offering, and serve customers more cost effectively. April 9, 2018 $3,890 $ 2,235 $ 1,655 West Fontana Wood Products ("Fontana") A manufacturer and distributor of lumber and trusses in the Southern California region. Fontana had annual sales of approximately million. The acquisition of Fontana allows us to expand our manufactured housing business and creates operating leverage by consolidating with another regional operation. April 3, 2018 $1,347 $ 1,287 $ 60 All Other Expert Packaging ("Expert") A manufacturer and distributor of total packaging solutions in timber, crates, pallets, and skids. Expert had annual sales of approximately million. The acquisition of Expert allows us to make progress on our goal of becoming a global provider of packaging solutions. January 23, 2018 $2,942 $ 850 $ 2,092 West Spinner Wood Products, LLC ("Spinner") A manufacturer and distributor of agricultural bin and various industrial packaging. Spinner had annual sales of approximately million. The acquisition of Spinner allows us to expand our industrial packaging product offering and creates operating leverage by consolidating with other regional operations. January 15, 2018 $5,784 $ 50 $ 5,734 North Great Northern Lumber, LLC A manufacturer of industrial products as well as serving the concrete forming market in the Chicago area. Great Northern Lumber had annual sales of approximately million. The acquisition of Great Northern Lumber enables us to expand our concrete forming product offering and regional coverage. |
Acquired Intangible Assets | At December 28, 2019, the amounts assigned to major intangible classes for the business combinations mentioned above are as follows (in thousands): Non- Intangibles - Compete Customer Tax Agreements Relationships Tradename Goodwill Deductible Pallet USA $ — $ 1,400 * $ 1,898 * $ 4,166 * $ 7,464 Northwest — 4,500 * 1,000 * 2,589 * 8,089 Wolverine — 3,232 * 864 * 2,084 * 6,180 Pak-Rite 30 3,750 1,060 3,752 8,592 Pallet Place — 250 — — 250 NACC — 2,810 770 5,916 9,496 Fontana — 2,235 — — 2,235 Expert Packaging 221 809 257 — — Spinner 850 — — — 850 Great Northern Lumber 50 — — — 50 *(estimate) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Schedule of Goodwill | The changes in the net carrying amount of goodwill by reporting segment for the years ended December 28, 2019 and December 29, 2018, are as follows (in thousands): North South West All Other Total Balance as of December 30, 2017 51,127 46,738 87,730 27,049 212,644 2018 Acquisitions 4,292 8,996 — — 13,288 Foreign Exchange, Net (365) — — (1,450) (1,815) Balance as of December 29, 2018 55,054 55,734 87,730 25,599 224,117 2019 Acquisitions 5,710 (3,080) 2,589 — 5,219 Foreign Exchange, Net 182 — — 18 200 Balance as of December 28, 2019 $ 60,946 $ 52,654 $ 90,319 $ 25,617 $ 229,536 |
Other Intangible Assets | The following amounts were included in other amortizable intangible assets, net as of December 28, 2019 and December 29, 2018 (in thousands): 2019 2018 Accumulated Accumulated Assets Amortization Net Value Assets Amortization Net Value Non-compete agreements $ 5,092 $ (2,262) $ 2,830 $ 10,232 $ (5,517) $ 4,715 Customer relationships 48,084 (10,079) 38,005 40,307 (6,843) 33,464 Licensing agreements 4,589 (4,368) 221 4,589 (3,909) 680 Patents 914 (421) 493 792 (284) 508 Tradename 7,966 (1,202) 6,764 2,879 (760) 2,119 Total $ 66,645 $ (18,332) $ 48,313 $ 58,799 $ (17,313) $ 41,486 |
Estimated Useful Lives of Intangible Assets | Weighted Average Intangible Asset Type Estimated Useful Life Amortization Period Non-compete agreements 3 to 15 years 9.7 years Customer relationship 5 to 15 years 10.5 years Licensing agreements 10 years 10 years Tradename (amortizable) 3 to 15 years 11.5 years |
Expected Amortization Expense | Amortization expense of intangibles totaled $6.3 million, $6.4 million and $4.9 million in 2019, 2018 and 2017, respectively. The estimated amortization expense for intangibles for each of the five succeeding fiscal years is as follows (in thousands): 2020 $ 6,095 2021 5,572 2022 5,243 2023 4,497 2024 3,772 Thereafter 23,134 Total $ 48,313 |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Long-term Debt and Capital Lease Obligations | Long-term debt obligations are summarized as follows on December 28, 2019 and December 29, 2018 (amounts in thousands): 2019 2018 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 A, due on December 17, 2022, interest payable semi-annually at 3.89% 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 Revolving credit facility totaling $375 million due on November 1, 2023, interest payable monthly at a floating rate (2.54% on December 28, 2019 and 3.39% on December 29, 2018) — 39,010 Foreign subsidiary borrowings under revolving credit facility, due on November 1, 2023, interest payable monthly at a floating rate (1.88% on December 28, 2019 and 2.94% on December 29, 2018) 3,976 3,480 Series 1999 Industrial Development Revenue Bonds, due on August 1, 2029, interest payable monthly at a floating rate (1.14% on December 28, 2019 and 1.94% on December 29, 2018) 3,300 3,300 Series 2000 Industrial Development Revenue Bonds, due on October 1, 2020, interest payable monthly at a floating rate (1.57% on December 28, 2019 and 2.00% on December 29, 2018) 2,700 2,700 Series 2002 Industrial Development Revenue Bonds, due on December 1, 2022, interest payable monthly at a floating rate (1.79% on December 28, 2019 and 1.99% on December 29, 2018) 3,700 3,700 Capital leases and foreign affiliate debt 174 311 163,850 202,501 Less current portion (2,816) (148) Less debt issuance costs (167) (223) Long-term portion $ 160,867 $ 202,130 |
Principal Maturities of Long-term Debt and Capital Lease Obligations | On December 28, 2019, the principal maturities of long-term debt and capital lease obligations are as follows (in thousands): 2020 $ 2,816 2021 58 2022 38,700 2023 3,976 2024 40,000 Thereafter 78,300 Total $ 163,850 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Schedule of lease costs | Lease costs under non-cancelable operating leases on December 28, 2019 are as follows (in thousands): Operating Leases Operating lease cost $ 20,771 Short-term lease cost 110 Variable lease cost 1,484 Sublease income (676) Total lease cost $ 21,689 |
Future Minimum Lease Payments | Future minimum payments under non-cancelable operating leases on December 28, 2019 are as follows (in thousands): Operating Leases 2020 $ 17,633 2021 15,074 2022 12,624 2023 10,434 2024 7,848 Thereafter 29,115 Total minimum lease payments $ 92,728 Less present value discount (12,561) Total lease liability $ 80,167 |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Schedule of common stock issuances | December 28, 2019 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 34 $ 32.47 Shares issued under the employee stock gift program 4 35.68 Shares issued under the director retainer stock program 5 38.44 Shares issued under the long term stock incentive plan 211 30.83 Shares issued under the executive stock match grants 109 31.57 Forfeitures (19) - Total shares issued under stock grant programs 310 $ 31.25 Shares issued under the deferred compensation plans 181 $ 34.31 Total 525 $ 32.35 December 29, 2018 Share Issuance Activity Common Stock Average Share Price Shares issued under the employee stock purchase plan 38 $ 35.58 Shares issued under the employee stock gift program 3 33.56 Shares issued under the director retainer stock program 101 17.17 Shares issued under the long term stock incentive plan 164 35.16 Shares issued under the executive stock match grants 94 32.94 Forfeitures (14) - Total shares issued under stock grant programs 348 $ 29.37 Shares issued under the deferred compensation plans 167 $ 36.98 Total 553 $ 31.78 |
Nonvested Restricted Shares Activity | 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 31, 2016 791,532 19.32 4.8 1.51 years Granted 388,248 32.03 Vested (141,111) 12.71 Forfeited (5,043) 30.14 Nonvested at December 30, 2017 1,033,626 24.24 7.1 1.31 years Granted 247,068 36.52 Vested (107,865) 18.11 Forfeited (12,750) 24.19 Nonvested at December 29, 2018 1,160,079 23.32 7.6 1.12 years Granted 318,496 32.60 Vested (224,894) 23.42 Forfeited (50,786) 24.18 Nonvested at December 28, 2019 1,202,895 $ 29.68 $ 7.9 0.86 years |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Components of Income Tax Expense (Benefit) | Income tax provisions for the years ended December 28, 2019, December 29, 2018, and December 30, 2017 are summarized as follows (in thousands): 2019 2018 2017 Currently Payable: Federal $ 35,267 $ 31,492 $ 44,413 State and local 10,071 7,544 8,579 Foreign 5,834 5,527 6,240 51,172 44,563 59,232 Net Deferred: Federal 6,895 2,965 (7,681) State and local 805 (522) (864) Foreign (602) (1,565) 1,280 7,098 878 (7,265) $ 58,270 $ 45,441 $ 51,967 |
Components of Earnings Before Income Taxes | 2019 2018 2017 U.S. $ 220,532 $ 180,261 $ 151,395 Foreign 20,142 17,592 24,612 Total $ 240,674 $ 197,853 $ 176,007 |
Effective Income Tax Rate Reconciliation | 2019 2018 2017 Statutory federal income tax rate 21.0 % 21.0 % 35.0 % State and local taxes (net of federal benefits) 3.9 3.8 3.0 Effect of noncontrolling owned interest in earnings of partnerships (0.1) (0.1) (0.2) Manufacturing deduction n/a n/a (2.5) Tax credits, including foreign tax credit (1.3) (1.6) (2.0) Change in uncertain tax positions reserve (0.1) 0.1 0.4 Other permanent differences 0.5 0.6 (0.1) Other, net 0.3 (0.7) (0.6) Impact of Tax Act and reduction of corporate tax rate (a) n/a (0.1) (3.5) Effective income tax rate 24.2 % 23.0 % 29.5 % |
Components of Deferred Tax Assets and Liabilities | Temporary differences which give rise to deferred income tax assets and (liabilities) on December 28, 2019 and December 29, 2018 are as follows (in thousands): 2019 2018 Employee benefits $ 22,420 $ 20,914 Lease liability 20,255 — Net operating loss carryforwards 6,411 6,520 Foreign subsidiary capital loss carryforward 519 504 Other tax credits 620 586 Inventory 993 1,090 Reserves on receivables 1,266 802 Accrued expenses 2,318 1,593 Other, net 3,159 2,785 Gross deferred income tax assets 57,961 34,794 Valuation allowance (2,447) (2,707) Deferred income tax assets 55,514 32,087 Depreciation (34,001) (24,881) Intangibles (21,375) (20,225) Right of use assets (20,255) — Other, net — — Deferred income tax liabilities (75,631) (45,106) Net deferred income tax liability $ (20,117) $ (13,019) |
Schedule of NOL and credit carryforwards | Net Operating Losses Tax Credits U.S. State Foreign U.S. State 2019 - 2023 $ — $ 173 $ — $ — $ 620 2024 - 2028 — 285 1,279 — — 2029 - 2033 2,124 748 213 — — 2034 - 2038 28 854 — — — Thereafter — 243 464 — — Total $ 2,152 $ 2,303 $ 1,956 $ — $ 620 |
ACCOUNTING FOR UNCERTAINTY IN_2
ACCOUNTING FOR UNCERTAINTY IN INCOME (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
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): 2019 2018 2017 Gross unrecognized tax benefits beginning of year $ 4,378 $ 4,000 $ 3,381 Increase in tax positions for prior years (129) (366) 4 Increase in tax positions due to acquisitions — — — Increase in tax positions for current year 768 1,326 1,107 Settlements with taxing authorities — — (2) Lapse in statute of limitations (851) (582) (490) Gross unrecognized tax benefits end of year $ 4,166 $ 4,378 $ 4,000 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Segment Reporting | 2019 All North South West Other Corporate Total Net sales to outside customers $ 1,302,067 $ 936,964 $ 1,548,098 $ 628,880 $ — $ 4,416,009 Intersegment net sales 57,675 81,875 52,601 225,913 — 418,064 Interest expense (income) (36) — 108 (1,949) 10,577 8,700 Amortization expense 1,217 1,200 2,049 1,859 — 6,325 Depreciation expense 13,624 9,310 17,062 10,254 10,244 60,494 Segment earnings from operations 95,728 64,517 118,444 8,913 (42,696) 244,906 Segment assets 396,010 249,053 485,674 513,081 245,659 1,889,477 Capital expenditures 21,292 18,051 19,682 23,576 2,332 84,933 2018 All North South West Other Corporate Total Net sales to outside customers $ 1,279,459 $ 1,024,747 $ 1,599,274 $ 585,700 $ — $ 4,489,180 Intersegment net sales 56,682 76,297 56,004 235,905 — 424,888 Interest expense 58 (6) 197 (1,486) 10,130 8,893 Amortization expense 830 1,292 1,998 2,273 — 6,393 Depreciation expense 12,062 8,244 14,836 10,341 9,466 54,949 Segment earnings from operations 66,239 60,049 103,357 6,779 (29,161) 207,263 Segment assets 386,483 266,503 496,939 395,727 101,896 1,647,548 Capital expenditures 17,820 9,185 26,024 39,168 3,665 95,862 2017 All North South West Other Corporate Total Net sales to outside customers $ 1,133,656 $ 837,370 $ 1,417,924 $ 552,232 $ — $ 3,941,182 Intersegment net sales 67,161 74,566 83,245 167,568 — 392,540 Interest expense 4 160 293 (473) 6,234 6,218 Amortization expense 559 607 1,723 1,971 — 4,860 Depreciation expense 10,511 6,880 14,116 8,586 8,443 48,536 Segment earnings from operations 61,326 46,646 82,465 17,296 (26,264) 181,469 Segment assets 351,270 240,661 462,311 356,264 54,171 1,464,677 Capital expenditures 23,026 12,286 23,212 9,865 2,727 71,116 |
Information Regarding Principal Geographic Areas | Information regarding principal geographic areas was as follows (in thousands): 2019 2018 2017 Long-Lived Long-Lived Long-Lived Tangible Tangible Tangible Net Sales Assets Net Sales Assets Net Sales Assets United States $ 4,308,618 $ 469,605 $ 4,382,356 $ 342,326 $ 3,821,366 $ 313,976 Foreign 107,391 36,878 106,824 34,312 119,816 30,380 Total $ 4,416,009 $ 506,483 $ 4,489,180 $ 376,638 $ 3,941,182 $ 344,356 |
Gross Sales by Major Product Classification | The following table presents, for the periods indicated, our gross sales (in thousands) by major product classification. Year Ended December 28, December 29, December 30, 2019 2018 2017 Value-Added Sales Trusses – residential, modular and manufactured housing $ 438,621 $ 421,996 $ 368,591 Fencing 180,772 180,783 187,905 Decking and railing – composite, wood and other 310,311 261,778 244,910 Turn-key framing and installed sales 159,307 151,397 149,520 Industrial packaging and components 676,214 591,314 471,262 Engineered wood products (eg. LVL; i-joist) 86,954 83,222 76,507 In-store fixtures 274,580 252,341 260,174 Manufactured brite and other lumber 68,725 92,255 109,582 Wall panels 64,357 69,889 61,226 Outdoor DIY products (eg. stakes; landscape ties) 124,586 128,711 110,327 Construction and building materials (eg. door packages; drywall) 320,603 314,965 265,048 Lattice – plastic and wood 70,448 62,598 48,736 Manufactured brite and other panels 79,122 94,469 81,143 Siding, trim and moulding 111,230 107,873 85,016 Hardware 16,069 16,742 21,218 Manufactured treated lumber 92,277 96,450 69,844 Other 30,160 11,946 10,632 Total Value-Added Sales $ 3,104,336 $ 2,938,729 $ 2,621,641 Commodity-Based Sales Non-manufactured brite and other lumber 594,534 700,143 545,430 Non-manufactured treated lumber 525,030 585,628 523,245 Non-manufactured brite and other panels 205,678 278,898 265,909 Non-manufactured treated panels 39,340 42,958 36,913 Other 23,266 19,393 13,065 Total Commodity-Based Sales $ 1,387,848 $ 1,627,020 $ 1,384,562 Total Gross Sales $ 4,492,184 $ 4,565,749 $ 4,006,203 Sales Allowances (76,175) (76,569) (65,021) Total Net Sales $ 4,416,009 $ 4,489,180 $ 3,941,182 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 28, 2019 | |
Quarterly Financial Information | The following table sets forth selected financial information for all of the quarters, consisting of 13 weeks during the years ended December 28, 2019 and December 29, 2018, respectively, (in thousands, except per share data): First Second Third Fourth 2019 2018 2019 2018 2019 2018 2019 2018 Net sales $ 1,015,125 $ 993,857 $ 1,239,817 $ 1,294,440 $ 1,163,026 $ 1,212,702 $ 998,041 $ 988,181 Gross profit 154,267 130,889 186,726 165,689 187,270 158,673 157,255 137,643 Net earnings 36,002 33,582 55,145 45,130 52,581 42,068 38,676 31,632 Net earnings attributable to controlling interest 35,540 32,833 54,515 44,044 51,859 41,219 37,736 30,502 Basic earnings per share 0.58 0.53 0.88 0.71 0.84 0.67 0.61 0.50 Diluted earnings per share 0.58 0.53 0.88 0.71 0.84 0.66 0.61 0.50 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 28, 2019USD ($)contractshares | Dec. 29, 2018USD ($)shares | Dec. 30, 2017shares | Dec. 30, 2018USD ($) | Dec. 31, 2017USD ($) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||||
Options to purchase shares excluded from computation of EPS (in shares) | shares | 0 | 0 | 0 | ||
Requisite ownership to consolidate (in hundredths) (or more) | 50.00% | ||||
Length of fiscal year | 364 days | 364 days | 364 days | ||
Accounts receivable retainage | $ 7,400 | $ 5,500 | |||
Accounts receivable retainage, collection period | 18 months | ||||
Concentration of accounts receivable related to largest customer | $ 42,800 | 44,500 | |||
Inventory on consignment | $ 20,200 | 16,800 | |||
Number of insurance contracts with third party by Ardellis | contract | 42 | ||||
Reserve associated with contracts to third party by Ardellis | $ 5,700 | 4,900 | |||
New accounting pronouncement | |||||
Retained earnings | 995,022 | 839,917 | |||
Right-of-use assets | 80,167 | ||||
Operating lease liability | $ 80,167 | ||||
Minimum | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||||
Length of fiscal year | 364 days | ||||
Maximum | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||||
Length of fiscal year | 371 days | ||||
ASU 2016-01 | |||||
New accounting pronouncement | |||||
Equity Securities Fair Value | $ 14,700 | 11,000 | |||
Equity securities, unrealized gain | $ 2,500 | ||||
Equity securities, unrealized loss | $ 1,900 | ||||
ASU 2016-01 | Restatement | |||||
New accounting pronouncement | |||||
Retained earnings | $ 900 | ||||
ASU 2016-02 | |||||
New accounting pronouncement | |||||
Right-of-use assets | $ 69,000 | ||||
Operating lease liability | 69,000 | ||||
ASU 2016-02 | Restatement | |||||
New accounting pronouncement | |||||
Retained earnings | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Accounts Receivable Allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ 2,601 | $ 2,424 | $ 2,845 |
Additions Charged to Costs and Expenses | 39,481 | 38,963 | 28,102 |
Deductions | (37,642) | (38,786) | (28,523) |
Ending Balance | $ 4,440 | $ 2,601 | $ 2,424 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Estimated Useful Lives of Property, Plant, and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Property, Plant and Equipment | ||
Property, plant and equipment | $ 884,963 | $ 814,645 |
Accumulated amortization | $ 497,789 | 459,935 |
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 | $ 6,100 | 7,300 |
Accumulated amortization | $ 5,200 | $ 5,700 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) $ in Thousands | 12 Months Ended | |||
Dec. 28, 2019USD ($)item | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 31, 2017USD ($) | |
Revenue Recognition | ||||
Retained earnings | $ 995,022 | $ 839,917 | ||
Number of markets in which the entity operates (in markets) | item | 3 | |||
Total Gross Sales | $ 4,492,183 | 4,565,749 | ||
Sales Allowances | (76,174) | (76,569) | ||
Total Net Sales | $ 4,492,184 | 4,565,749 | $ 4,006,203 | |
Change % | (1.60%) | |||
Change % in sales allowances | (0.50%) | |||
Change % in net sales | (1.60%) | |||
FOB Shipping Point Revenue | ||||
Revenue Recognition | ||||
Total Net Sales | $ 4,348,757 | 4,440,098 | ||
Change % | (2.10%) | |||
Construction Contract Revenue | ||||
Revenue Recognition | ||||
Total Net Sales | $ 143,426 | $ 125,651 | ||
Change % | 14.10% | |||
Construction Contract Revenue | North | ||||
Revenue Recognition | ||||
Total Net Sales | $ 100,500 | |||
Construction Contract Revenue | West | ||||
Revenue Recognition | ||||
Total Net Sales | $ 42,900 | |||
Minimum | ||||
Revenue Recognition | ||||
Number of days revenue is recognized | 2 days | |||
Period of time invoices are due | 45 days | |||
Minimum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-30 | Construction Contract Revenue | ||||
Revenue Recognition | ||||
Number of months to complete contract projects | 6 months | |||
Maximum | ||||
Revenue Recognition | ||||
Number of days revenue is recognized | 3 days | |||
Period of time invoices are due | 60 days | |||
Maximum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-12-30 | Construction Contract Revenue | ||||
Revenue Recognition | ||||
Number of months to complete contract projects | 18 months | |||
Adjustment | ASU 2014-09 | ||||
Revenue Recognition | ||||
Retained earnings | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Percentage of Completion Account Balances (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Cost and Earnings in Excess of Billings | $ 4,690 | $ 6,945 |
Billings in Excess of Cost and Earnings | $ 6,622 | $ 3,245 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Computation of Earnings Per Share (Details) $ / shares in Units, shares in Thousands, $ in Thousands | Nov. 14, 2017 | Dec. 28, 2019USD ($)$ / shares | Sep. 28, 2019USD ($)$ / shares | Jun. 29, 2019USD ($)$ / shares | Mar. 30, 2019USD ($)$ / shares | Dec. 29, 2018USD ($)$ / shares | Sep. 29, 2018USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 28, 2019USD ($)$ / sharesshares | Dec. 29, 2018USD ($)$ / sharesshares | Dec. 30, 2017USD ($)$ / sharesshares |
Stock split ratio | 3 | |||||||||||
Numerator: | ||||||||||||
Net earnings attributable to controlling interest | $ | $ 37,736 | $ 51,859 | $ 54,515 | $ 35,540 | $ 30,502 | $ 41,219 | $ 44,044 | $ 32,833 | $ 179,650 | $ 148,598 | $ 119,512 | |
Adjustment for earnings allocated to non-vested restricted common stock | $ | (4,496) | (3,396) | (2,225) | |||||||||
Net earnings for calculating EPS | $ | $ 175,154 | $ 145,202 | $ 117,287 | |||||||||
Denominator: | ||||||||||||
Weighted average shares outstanding (in shares) | 61,649 | 61,762 | 61,416 | |||||||||
Adjustment for non-vested restricted common stock (in shares) | (1,543) | (1,411) | (1,143) | |||||||||
Shares for calculating basic EPS (in shares) | 60,106 | 60,351 | 60,273 | |||||||||
Effect of dilutive restricted common stock (in shares) | 24 | 82 | 90 | |||||||||
Shares for calculating diluted EPS (in shares) | 60,130 | 60,433 | 60,363 | |||||||||
Net earnings per share | ||||||||||||
Basic (USD per share) | $ / shares | $ 0.61 | $ 0.84 | $ 0.88 | $ 0.58 | $ 0.50 | $ 0.67 | $ 0.71 | $ 0.53 | $ 2.91 | $ 2.41 | $ 1.95 | |
Diluted (USD per share) | $ / shares | $ 0.61 | $ 0.84 | $ 0.88 | $ 0.58 | $ 0.50 | $ 0.66 | $ 0.71 | $ 0.53 | $ 2.91 | $ 2.40 | $ 1.94 |
FAIR VALUE - Asset Measured at
FAIR VALUE - Asset Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Money market funds | Cash and Cash Equivalents | ||
Fair Value | ||
Investments at fair value | $ 162,600 | |
Money market funds | Restricted Investments | ||
Fair Value | ||
Investments at fair value | 600 | |
Fixed Income | Restricted Investments | ||
Fair Value | ||
Investments at fair value | 15,700 | |
Mutual funds, equity and alternative investments | Investments | ||
Fair Value | ||
Investments at fair value | 18,500 | |
Money market and mutual funds | Other Assets | ||
Fair Value | ||
Investments at fair value | 1,100 | |
Estimate of Fair Value Measurement | Recurring | ||
Fair Value | ||
Investments at fair value | 198,519 | $ 33,600 |
Assets at fair value | 198,519 | 33,600 |
Estimate of Fair Value Measurement | Recurring | Money market funds | ||
Fair Value | ||
Investments at fair value | 163,188 | 5,323 |
Estimate of Fair Value Measurement | Recurring | Fixed Income | ||
Fair Value | ||
Investments at fair value | 15,729 | 13,125 |
Estimate of Fair Value Measurement | Recurring | Equity | ||
Fair Value | ||
Investments at fair value | 9,734 | 7,262 |
Estimate of Fair Value Measurement | Recurring | Alternative Investments | ||
Fair Value | ||
Investments at fair value | 1,941 | 1,756 |
Estimate of Fair Value Measurement | Recurring | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 7,927 | 6,134 |
Estimate of Fair Value Measurement | Recurring | Domestic stock funds | ||
Fair Value | ||
Investments at fair value | 3,308 | 2,846 |
Estimate of Fair Value Measurement | Recurring | International stock funds | ||
Fair Value | ||
Investments at fair value | 1,741 | 937 |
Estimate of Fair Value Measurement | Recurring | Target funds | ||
Fair Value | ||
Investments at fair value | 281 | 237 |
Estimate of Fair Value Measurement | Recurring | Bond funds | ||
Fair Value | ||
Investments at fair value | 850 | 796 |
Estimate of Fair Value Measurement | Recurring | Alternative funds | ||
Fair Value | ||
Investments at fair value | 1,747 | 1,318 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | ||
Fair Value | ||
Investments at fair value | 180,521 | 16,839 |
Assets at fair value | 180,521 | 16,839 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Money market funds | ||
Fair Value | ||
Investments at fair value | 162,626 | 56 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Fixed Income | ||
Fair Value | ||
Investments at fair value | 234 | 3,387 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Equity | ||
Fair Value | ||
Investments at fair value | 9,734 | 7,262 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Mutual Fund | ||
Fair Value | ||
Investments at fair value | 7,927 | 6,134 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Domestic stock funds | ||
Fair Value | ||
Investments at fair value | 3,308 | 2,846 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | International stock funds | ||
Fair Value | ||
Investments at fair value | 1,741 | 937 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Target funds | ||
Fair Value | ||
Investments at fair value | 281 | 237 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Bond funds | ||
Fair Value | ||
Investments at fair value | 850 | 796 |
Estimate of Fair Value Measurement | Recurring | Quoted Prices in Active Markets (Level 1) | Alternative funds | ||
Fair Value | ||
Investments at fair value | 1,747 | 1,318 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | ||
Fair Value | ||
Investments at fair value | 16,057 | 15,005 |
Assets at fair value | 16,057 | 15,005 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Money market funds | ||
Fair Value | ||
Investments at fair value | 562 | 5,267 |
Estimate of Fair Value Measurement | Recurring | Prices with Other Observable Inputs (Level 2) | Fixed Income | ||
Fair Value | ||
Investments at fair value | 15,495 | 9,738 |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | ||
Fair Value | ||
Investments at fair value | 1,941 | 1,756 |
Assets at fair value | 1,941 | 1,756 |
Estimate of Fair Value Measurement | Recurring | Prices with Unobservable Inputs (Level 3) | Alternative Investments | ||
Fair Value | ||
Investments at fair value | $ 1,941 | $ 1,756 |
FAIR VALUE - Available for Sale
FAIR VALUE - Available for Sale Investment Portfolio (Details) - Ardellis Insurance Ltd. - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Available-for-sale securities | ||
Total Securities Cost | $ 31,713 | $ 27,979 |
Unrealized Gain (Loss) | 2,543 | 588 |
Total Fair Value | 34,256 | 27,391 |
Fixed Income | ||
Available-for-sale securities | ||
Debt Securities Cost | 15,376 | 13,301 |
Debt Securities Unrealized Gain/(Loss) | (176) | |
Debt Securities Unrealized Gain/(Loss) | 353 | |
Debt Securities Fair Value | 15,729 | 13,125 |
Equity | ||
Available-for-sale securities | ||
Equity Securities Cost | 7,958 | 7,141 |
Equity Securities Unrealized Gain/(Loss) | 1,776 | 121 |
Equity Securities Fair Value | 9,734 | 7,262 |
Mutual Fund | ||
Available-for-sale securities | ||
Debt Securities Cost | 6,568 | 5,815 |
Debt Securities Unrealized Gain/(Loss) | (567) | |
Debt Securities Unrealized Gain/(Loss) | 284 | |
Debt Securities Fair Value | 6,852 | 5,248 |
Alternative Investments | ||
Available-for-sale securities | ||
Debt Securities Cost | 1,811 | 1,722 |
Debt Securities Unrealized Gain/(Loss) | 130 | 34 |
Debt Securities Fair Value | $ 1,941 | $ 1,756 |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Sep. 16, 2019 | Aug. 12, 2019 | May 01, 2019 | Oct. 22, 2018 | Jul. 31, 2018 | Jun. 01, 2018 | Apr. 09, 2018 | Apr. 03, 2018 | Jan. 23, 2018 | Jan. 15, 2018 | Dec. 28, 2019 |
Business Acquisition | |||||||||||
Aggregate acquisitions' revenue | $ 70,300 | ||||||||||
Aggregate acquisitions' operating profit | $ 4,100 | ||||||||||
Pallet USA | North | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 12,422 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Intangible Assets | $ 7,464 | ||||||||||
Net Tangible Assets | 4,958 | ||||||||||
Acquired entity, prior year sales | $ 18 | ||||||||||
Northwest | West | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 17,809 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Intangible Assets | $ 8,089 | ||||||||||
Net Tangible Assets | 9,720 | ||||||||||
Acquired entity, prior year sales | $ 14 | ||||||||||
Wolverine | North | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 7,168 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Intangible Assets | $ 6,180 | ||||||||||
Net Tangible Assets | 988 | ||||||||||
Acquired entity, prior year sales | $ 5 | ||||||||||
Pak-Rite | North | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 15,115 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Intangible Assets | $ 8,592 | ||||||||||
Net Tangible Assets | 6,523 | ||||||||||
Acquired entity, prior year sales | $ 15 | ||||||||||
Pallet Place | West | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 1,016 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Intangible Assets | $ 250 | ||||||||||
Net Tangible Assets | 766 | ||||||||||
Acquired entity, prior year sales | $ 5 | ||||||||||
North American Container Corporation | South | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 25,866 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Intangible Assets | $ 9,496 | ||||||||||
Net Tangible Assets | 16,370 | ||||||||||
Acquired entity, prior year sales | $ 71 | ||||||||||
Fontana Wood Products | West | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 3,890 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Intangible Assets | $ 2,235 | ||||||||||
Net Tangible Assets | 1,655 | ||||||||||
Acquired entity, prior year sales | $ 12 | ||||||||||
Expert Packaging | All Other | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 1,347 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Intangible Assets | $ 1,287 | ||||||||||
Net Tangible Assets | 60 | ||||||||||
Acquired entity, prior year sales | $ 3,600 | ||||||||||
Spinner Wood Products, LLC | West | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 2,942 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Intangible Assets | $ 850 | ||||||||||
Net Tangible Assets | 2,092 | ||||||||||
Acquired entity, prior year sales | $ 8 | ||||||||||
Great Northern Lumber, LLC | North | |||||||||||
Business Acquisition | |||||||||||
Purchase Price | $ 5,784 | ||||||||||
Percentage of assets purchased (as a percent) | 100.00% | ||||||||||
Intangible Assets | $ 50 | ||||||||||
Net Tangible Assets | 5,734 | ||||||||||
Acquired entity, prior year sales | $ 25 |
BUSINESS COMBINATIONS - Acquire
BUSINESS COMBINATIONS - Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Business Acquisition | |||
GOODWILL | $ 229,536 | $ 224,117 | $ 212,644 |
Pallet USA | |||
Business Acquisition | |||
GOODWILL | 4,166 | ||
Goodwill - Tax Deductible | 7,464 | ||
Northwest | |||
Business Acquisition | |||
GOODWILL | 2,589 | ||
Goodwill - Tax Deductible | 8,089 | ||
Wolverine | |||
Business Acquisition | |||
GOODWILL | 2,084 | ||
Goodwill - Tax Deductible | 6,180 | ||
Pak-Rite | |||
Business Acquisition | |||
GOODWILL | 3,752 | ||
Goodwill - Tax Deductible | 8,592 | ||
Pallet Place | |||
Business Acquisition | |||
Goodwill - Tax Deductible | 250 | ||
North American Container Corporation | |||
Business Acquisition | |||
GOODWILL | 5,916 | ||
Goodwill - Tax Deductible | 9,496 | ||
Fontana Wood Products | |||
Business Acquisition | |||
Goodwill - Tax Deductible | 2,235 | ||
Spinner Wood Products, LLC | |||
Business Acquisition | |||
Goodwill - Tax Deductible | 850 | ||
Great Northern Lumber, LLC | |||
Business Acquisition | |||
Goodwill - Tax Deductible | 50 | ||
Non-compete agreements | Pak-Rite | |||
Business Acquisition | |||
Intangible assets other than goodwill | 30 | ||
Non-compete agreements | Expert Packaging | |||
Business Acquisition | |||
Intangible assets other than goodwill | 221 | ||
Non-compete agreements | Spinner Wood Products, LLC | |||
Business Acquisition | |||
Intangible assets other than goodwill | 850 | ||
Non-compete agreements | Great Northern Lumber, LLC | |||
Business Acquisition | |||
Intangible assets other than goodwill | 50 | ||
Customer relationships | Pallet USA | |||
Business Acquisition | |||
Intangible assets other than goodwill | 1,400 | ||
Customer relationships | Northwest | |||
Business Acquisition | |||
Intangible assets other than goodwill | 4,500 | ||
Customer relationships | Wolverine | |||
Business Acquisition | |||
Intangible assets other than goodwill | 3,232 | ||
Customer relationships | Pak-Rite | |||
Business Acquisition | |||
Intangible assets other than goodwill | 3,750 | ||
Customer relationships | Pallet Place | |||
Business Acquisition | |||
Intangible assets other than goodwill | 250 | ||
Customer relationships | North American Container Corporation | |||
Business Acquisition | |||
Intangible assets other than goodwill | 2,810 | ||
Customer relationships | Fontana Wood Products | |||
Business Acquisition | |||
Intangible assets other than goodwill | 2,235 | ||
Customer relationships | Expert Packaging | |||
Business Acquisition | |||
Intangible assets other than goodwill | 809 | ||
Tradename | Pallet USA | |||
Business Acquisition | |||
Intangible assets other than goodwill | 1,898 | ||
Tradename | Northwest | |||
Business Acquisition | |||
Intangible assets other than goodwill | 1,000 | ||
Tradename | Wolverine | |||
Business Acquisition | |||
Intangible assets other than goodwill | 864 | ||
Tradename | Pak-Rite | |||
Business Acquisition | |||
Intangible assets other than goodwill | 1,060 | ||
Tradename | North American Container Corporation | |||
Business Acquisition | |||
Intangible assets other than goodwill | 770 | ||
Tradename | Expert Packaging | |||
Business Acquisition | |||
Intangible assets other than goodwill | $ 257 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Indefinite-lived intangible assets | $ 7,354 | $ 7,360 | |
Amortization of intangibles | $ 6,325 | $ 6,393 | $ 4,860 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill by Reporting Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill | ||
Goodwill, Beginning Balance | $ 224,117 | $ 212,644 |
Acquisitions | 5,219 | 13,288 |
Foreign Exchange, Net | 200 | (1,815) |
Goodwill, Ending Balance | 229,536 | 224,117 |
North | ||
Goodwill | ||
Goodwill, Beginning Balance | 55,054 | 51,127 |
Acquisitions | 5,710 | 4,292 |
Foreign Exchange, Net | 182 | (365) |
Goodwill, Ending Balance | 60,946 | 55,054 |
South | ||
Goodwill | ||
Goodwill, Beginning Balance | 55,734 | 46,738 |
Acquisitions | 8,996 | |
Acquisitions | (3,080) | |
Goodwill, Ending Balance | 52,654 | 55,734 |
West | ||
Goodwill | ||
Goodwill, Beginning Balance | 87,730 | 87,730 |
Acquisitions | 2,589 | |
Goodwill, Ending Balance | 90,319 | 87,730 |
All Other | ||
Goodwill | ||
Goodwill, Beginning Balance | 25,599 | 27,049 |
Foreign Exchange, Net | 18 | (1,450) |
Goodwill, Ending Balance | $ 25,617 | $ 25,599 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Included in Other Amortizable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Finite-Lived Intangible Assets | ||
Assets | $ 66,645 | $ 58,799 |
Accumulated Amortization | (18,332) | (17,313) |
Net Value | 48,313 | 41,486 |
Non-compete agreements | ||
Finite-Lived Intangible Assets | ||
Assets | 5,092 | 10,232 |
Accumulated Amortization | (2,262) | (5,517) |
Net Value | 2,830 | 4,715 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Assets | 48,084 | 40,307 |
Accumulated Amortization | (10,079) | (6,843) |
Net Value | 38,005 | 33,464 |
Licensing agreements | ||
Finite-Lived Intangible Assets | ||
Assets | 4,589 | 4,589 |
Accumulated Amortization | (4,368) | (3,909) |
Net Value | 221 | 680 |
Patents | ||
Finite-Lived Intangible Assets | ||
Assets | 914 | 792 |
Accumulated Amortization | (421) | (284) |
Net Value | 493 | 508 |
Tradename | ||
Finite-Lived Intangible Assets | ||
Assets | 7,966 | 2,879 |
Accumulated Amortization | (1,202) | (760) |
Net Value | $ 6,764 | $ 2,119 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Useful Lives of Intangible Assets (Details) | 12 Months Ended |
Dec. 28, 2019 | |
Non-compete agreements | |
Acquired Finite-Lived Intangible Assets | |
Weighted average amortization period | 9 years 8 months 12 days |
Customer relationships | |
Acquired Finite-Lived Intangible Assets | |
Weighted average amortization period | 10 years 6 months |
Licensing agreements | |
Acquired Finite-Lived Intangible Assets | |
Estimated useful life | 10 years |
Weighted average amortization period | 10 years |
Tradename | |
Acquired Finite-Lived Intangible Assets | |
Weighted average amortization period | 11 years 6 months |
Minimum | Non-compete agreements | |
Acquired Finite-Lived Intangible Assets | |
Estimated useful life | 3 years |
Minimum | Customer relationships | |
Acquired Finite-Lived Intangible Assets | |
Estimated useful life | 5 years |
Minimum | Tradename | |
Acquired Finite-Lived Intangible Assets | |
Estimated useful life | 3 years |
Maximum | Non-compete agreements | |
Acquired Finite-Lived Intangible Assets | |
Estimated useful life | 15 years |
Maximum | Customer relationships | |
Acquired Finite-Lived Intangible Assets | |
Estimated useful life | 15 years |
Maximum | Tradename | |
Acquired Finite-Lived Intangible Assets | |
Estimated useful life | 15 years |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS - Estimated Amortization Expense for Intangibles (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | ||
2020 | $ 6,095 | |
2021 | 5,572 | |
2022 | 5,243 | |
2023 | 4,497 | |
2024 | 3,772 | |
Thereafter | 23,134 | |
Net Value | $ 48,313 | $ 41,486 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) $ in Millions | Nov. 01, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Oct. 31, 2018 | Jun. 14, 2018 | Dec. 17, 2012 |
Debt | ||||||
Outstanding letters of credit | $ 37.3 | $ 30.3 | ||||
Fair value of long-term debt including current portion | 170.8 | |||||
Difference between fair value and carrying value of debt | 7 | |||||
Revolving Credit Facility | ||||||
Debt | ||||||
Term of debt | 5 years | |||||
Maximum borrowing capacity | $ 375 | 375 | $ 295 | |||
Outstanding letters of credit | 40 | |||||
Outstanding letters of credit that can be converted to foreign currency | $ 100 | |||||
Remaining borrowing capacity | $ 361.2 | $ 322.7 | ||||
Revolving Credit Facility | Minimum | ||||||
Debt | ||||||
Facility fee (in hundredths) | 12.50% | |||||
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% | 4.20% | |||
Debt | $ 40 | |||||
Series 2018 D Senior Notes | Senior Notes | ||||||
Debt | ||||||
Interest rate (in hundredths) | 4.27% | 4.27% | 4.27% | |||
Debt | $ 35 | |||||
Series 2012 Senior Notes Tranche A | Senior Notes | ||||||
Debt | ||||||
Interest rate (in hundredths) | 3.89% | 3.89% | 3.89% | |||
Debt | $ 35 | |||||
Series 2012 Senior Notes Tranche B | Senior Notes | ||||||
Debt | ||||||
Interest rate (in hundredths) | 3.98% | 3.98% | 3.98% | |||
Debt | $ 40 | |||||
Series 2002-A Senior Notes Tranche B | Corporate Debt Securities | ||||||
Debt | ||||||
Debt | $ 40 | |||||
Shelf Agreement | ||||||
Debt | ||||||
Remaining borrowing capacity | $ 150 | |||||
Letter of Credit | ||||||
Debt | ||||||
Interest rate (in hundredths) | 75.00% | |||||
Term of debt | 1 year | |||||
Letter of Credit | Industrial Development Revenue Bonds | ||||||
Debt | ||||||
Outstanding letters of credit | $ 9.8 | |||||
Letter of Credit | Industrial Development Revenue Bonds | Minimum | ||||||
Debt | ||||||
Interest rate (in hundredths) | 112.50% |
DEBT - Long-term Debt Obligatio
DEBT - Long-term Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 | Nov. 01, 2018 | Oct. 31, 2018 | Jun. 14, 2018 | Dec. 17, 2012 |
Debt | ||||||
Total | $ 163,850 | $ 202,501 | ||||
Less current portion | (2,816) | (148) | ||||
Less debt issuance costs | (167) | (223) | ||||
Long-term portion | 160,867 | 202,130 | ||||
Capital Leases and Foreign Affiliate Debt | ||||||
Debt | ||||||
Total | 174 | 311 | ||||
Senior Notes | Series 2018 C Senior Notes | ||||||
Debt | ||||||
Total | $ 40,000 | $ 40,000 | ||||
Interest rate (in hundredths) | 4.20% | 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% | 4.27% | |||
Senior Notes | Series 2012 Senior Notes Tranche A | ||||||
Debt | ||||||
Total | $ 35,000 | $ 35,000 | ||||
Interest rate (in hundredths) | 3.89% | 3.89% | 3.89% | |||
Senior Notes | Series 2012 Senior Notes Tranche B | ||||||
Debt | ||||||
Total | $ 40,000 | $ 40,000 | ||||
Interest rate (in hundredths) | 3.98% | 3.98% | 3.98% | |||
Revolving Credit Facility | ||||||
Debt | ||||||
Total | $ 39,010 | |||||
Maximum borrowing capacity | $ 375,000 | $ 375,000 | $ 295,000 | |||
Interest rate at period end (in hundredths) | 2.54% | 3.39% | ||||
Revolving Credit Facility | Domestic and Foreign Borrowings | ||||||
Debt | ||||||
Total | $ 4,000 | $ 42,500 | ||||
Revolving Credit Facility | Foreign Subsidiary Debt | ||||||
Debt | ||||||
Total | $ 3,976 | $ 3,480 | ||||
Interest rate at period end (in hundredths) | 1.88% | 2.94% | ||||
Corporate Debt Securities | Series 1999 Industrial Development Revenue Bonds | ||||||
Debt | ||||||
Total | $ 3,300 | $ 3,300 | ||||
Interest rate at period end (in hundredths) | 1.14% | 1.94% | ||||
Corporate Debt Securities | Series 2000 Industrial Development Revenue Bonds | ||||||
Debt | ||||||
Total | $ 2,700 | $ 2,700 | ||||
Interest rate at period end (in hundredths) | 1.57% | 2.00% | ||||
Corporate Debt Securities | Series 2002 Industrial Development Revenue Bonds | ||||||
Debt | ||||||
Total | $ 3,700 | $ 3,700 | ||||
Interest rate at period end (in hundredths) | 1.79% | 1.99% |
DEBT - Principal Maturities of
DEBT - Principal Maturities of Long-Term Debt and Capital Lease Obligations (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Principal Maturities | |
2020 | $ 2,816 |
2021 | 58 |
2022 | 38,700 |
2023 | 3,976 |
2024 | 40,000 |
Thereafter | 78,300 |
Total | $ 163,850 |
LEASES (Details)
LEASES (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018USD ($)facility | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | Dec. 30, 2018USD ($) | |
Leases | |||||
Retained earnings | $ 995,022 | $ 839,917 | |||
Lease, Practical Expedients, Package | true | ||||
Lease, Practical Expedient, Use of Hindsight | false | ||||
Right-of-use assets | $ 80,167 | ||||
Operating lease liability | $ 80,167 | ||||
Lessee, Operating Lease, Existence of Option to Extend | true | ||||
Rent expense | $ 29,900 | $ 28,100 | $ 24,200 | ||
Operating lease weighted average remaining term | 7 years 3 months 14 days | ||||
Operating lease weighted average discount rate | 3.10% | ||||
Lease costs | |||||
Operating lease cost | $ 20,771 | ||||
Short-term lease cost | 110 | ||||
Variable lease cost | 1,484 | ||||
Sublease Income | 676 | ||||
Total lease cost | 21,689 | ||||
Cash paid - operation leases | 20,000 | ||||
Right-of-use assets obtained in exchange for new operating leases | 33,400 | ||||
Future minimum payments | |||||
2020 | 17,633 | ||||
2021 | 15,074 | ||||
2022 | 12,624 | ||||
2023 | 10,434 | ||||
2024 | 7,848 | ||||
Thereafter | 29,115 | ||||
Total minimum lease payments | 92,728 | ||||
Less present value discount | (12,561) | ||||
Total lease liability | $ 80,167 | ||||
ASU 2016-02 | |||||
Leases | |||||
Right-of-use assets | $ 69,000 | ||||
Operating lease liability | 69,000 | ||||
Future minimum payments | |||||
Total lease liability | 69,000 | ||||
ASU 2016-02 | Restatement | |||||
Leases | |||||
Retained earnings | $ 0 | ||||
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 | ||||
Medley Florida Property | |||||
Leases | |||||
Length of lease (in years) | 2 years | ||||
Property sale | |||||
Number of facilities involved in a sales and leaseback transaction | facility | 1 | ||||
Sale price of property | $ 36,000 | ||||
Pre-tax gain on sale of property | $ 7,000 |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) $ in Thousands | 12 Months Ended |
Dec. 28, 2019USD ($) | |
Lease costs | |
Operating lease cost | $ 20,771 |
Short-term lease cost | 110 |
Variable lease cost | 1,484 |
Sublease income | (676) |
Total lease cost | 21,689 |
Cash paid - operation leases | 20,000 |
Right-of-use assets obtained in exchange for new operating leases | 33,400 |
Future minimum payments | |
2020 | 17,633 |
2021 | 15,074 |
2022 | 12,624 |
2023 | 10,434 |
2024 | 7,848 |
Thereafter | 29,115 |
Total minimum lease payments | 92,728 |
Less present value discount | (12,561) |
Total lease liability | $ 80,167 |
DEFERRED COMPENSATION (Details)
DEFERRED COMPENSATION (Details) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019USD ($)employee | Dec. 29, 2018USD ($) | Dec. 30, 2017USD ($) | |
Deferred compensation | |||
Number of participants who chose a deferred settlement | employee | 2 | ||
Number of years for settlement | 5 years | ||
Deferred compensation liability for the two participants who chose a deferred settlement | $ 300 | ||
Increase in investment in life insurance contracts | 15,253 | ||
Investment in life insurance contracts | 16,600 | ||
Liabilities related to Plan | 33,100 | $ 27,800 | |
Other Liabilities | |||
Deferred compensation | |||
Deferred compensation liability | 2,000 | 2,000 | |
Other Assets | |||
Deferred compensation | |||
Cash surrender value of life insurance | $ 2,000 | ||
Assets held by the Plan | $ 1,100 | $ 1,000 |
COMMON STOCK (Details)
COMMON STOCK (Details) $ in Millions | Nov. 14, 2017 | Dec. 28, 2019USD ($)shares | Dec. 29, 2018USD ($)shares | Dec. 30, 2017USD ($)itemshares | Oct. 14, 2010shares | Nov. 14, 2001shares |
Common stock | ||||||
Stock split ratio | 3 | |||||
Number of additional shares for each share held | item | 2 | |||||
Share-based compensation expense | $ 4 | $ 3.6 | $ 3.6 | |||
Income tax benefit from share-based compensation | 0.8 | 0.7 | 1 | |||
Cash received from option exercises and share issuances under plans | $ 1.1 | $ 1 | $ 0.7 | |||
Stock Repurchase Program [Abstract] | ||||||
Shares authorized for repurchase (in shares) | shares | 2,000,000 | 2,500,000 | ||||
Repurchase of shares (in shares) | shares | 0 | 860,669 | 445,740 | |||
Cumulative total authorized shares available for repurchase (in shares) | shares | 1,900,000 | |||||
Stock split ratio | 3 | |||||
Stock Purchase Plan | ||||||
Common stock | ||||||
Discount rate from fair market value on purchase date (in hundredths) | 85.00% | |||||
Stock Retainer Plan | ||||||
Common stock | ||||||
Multiplier of retainer fee (in hundredths) | 110.00% | |||||
Stock Retainer Plan expense | $ 1.8 | $ 1.7 | $ 1.7 | |||
Stock Options | ||||||
Common stock | ||||||
Unrecognized compensation expense of stock options | $ 0 | $ 0 | $ 0 |
COMMON STOCK - Common Stock Iss
COMMON STOCK - Common Stock Issuances (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Common Stock | ||
Forfeitures | (14) | |
Common stock issued, net of forfeitures | 525 | 553 |
Average Share Price | ||
Common stock issued (dollars per share) | $ 32.35 | $ 31.78 |
Stock Purchase Plan | ||
Common Stock | ||
Common stock issued | 34 | 38 |
Average Share Price | ||
Common stock issued (dollars per share) | $ 32.47 | $ 35.58 |
Stock Gift Program | ||
Common Stock | ||
Common stock issued | 4 | 3 |
Average Share Price | ||
Common stock issued (dollars per share) | $ 35.68 | $ 33.56 |
Stock Retainer Plan | ||
Common Stock | ||
Common stock issued | 5 | 101 |
Average Share Price | ||
Common stock issued (dollars per share) | $ 38.44 | $ 17.17 |
LTSIP | ||
Common Stock | ||
Common stock issued | 211 | 164 |
Average Share Price | ||
Common stock issued (dollars per share) | $ 30.83 | $ 35.16 |
Executive Stock Match Grants | ||
Common Stock | ||
Common stock issued | 109 | 94 |
Average Share Price | ||
Common stock issued (dollars per share) | $ 31.57 | $ 32.94 |
Deferred Compensation Plans | ||
Common Stock | ||
Common stock issued | 181 | 167 |
Average Share Price | ||
Common stock issued (dollars per share) | $ 34.31 | $ 36.98 |
Stock grant programs | ||
Common Stock | ||
Forfeitures | (19) | |
Common stock issued, net of forfeitures | 310 | 348 |
Average Share Price | ||
Common stock issued (dollars per share) | $ 31.25 | $ 29.37 |
COMMON STOCK - Nonvested Restri
COMMON STOCK - Nonvested Restricted Shares Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | |
Restricted Awards | ||||
Nonvested, beginning balance (in shares) | 1,160,079 | 1,033,626 | 791,532 | |
Granted (in shares) | 318,496 | 247,068 | 388,248 | |
Vested (in shares) | (224,894) | (107,865) | (141,111) | |
Forfeited (in shares) | (50,786) | (12,750) | (5,043) | |
Nonvested, ending balance (in shares) | 1,202,895 | 1,160,079 | 1,033,626 | 791,532 |
Weighted Average Grant Date Fair Value | ||||
Nonvested, beginning balance (in dollars per share) | $ 23.32 | $ 24.24 | $ 19.32 | |
Granted (in dollars per share) | 32.60 | 36.52 | 32.03 | |
Vested (in dollars per share) | 23.42 | 18.11 | 12.71 | |
Forfeited (in dollars per share) | 24.18 | 24.19 | 30.14 | |
Nonvested, ending balance (in dollars per share) | $ 29.68 | $ 23.32 | $ 24.24 | $ 19.32 |
Unrecognized Compensation Expense | ||||
Nonvested restricted awards, unrecognized compensation expense | $ 7.9 | $ 7.6 | $ 7.1 | $ 4.8 |
Nonvested restricted awards, weighted-average period to recognize expense | 10 months 9 days | 1 year 1 month 13 days | 1 year 3 months 21 days | 1 year 6 months 3 days |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching contribution, percent (in hundredths) | 25.00% | 25.00% | 25.00% |
Defined contribution plan, cost recognized | $ 6.5 | $ 3.4 | $ 4.8 |
Additonal matching contributions | $ 2.6 | $ 1.9 | |
Maximum annual contribution per employee (in hundredths) | 6.00% | ||
Number of years of service with the Company | 20 years | ||
Number of years of service with the Company as on officer | 10 years | ||
Percentage of officer's highest base salary (in hundredths) | 150.00% | ||
Years preceding separation from service | 3 years | ||
Other Liabilities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Liabilities related to Plan | $ 10.6 | $ 9.1 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Currently Payable: | |||
Federal | $ 35,267 | $ 31,492 | $ 44,413 |
State and local | 10,071 | 7,544 | 8,579 |
Foreign | 5,834 | 5,527 | 6,240 |
Total current payable | 51,172 | 44,563 | 59,232 |
Net Deferred: | |||
Federal | 6,895 | 2,965 | (7,681) |
State and local | 805 | (522) | (864) |
Foreign | (602) | (1,565) | 1,280 |
Total net deferred | 7,098 | 878 | (7,265) |
Income Tax Expense (Benefit), Total | $ 58,270 | $ 45,441 | $ 51,967 |
INCOME TAXES - Components of Ea
INCOME TAXES - Components of Earnings before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Components of earnings before income taxes [Abstract] | |||
U.S. | $ 220,532 | $ 180,261 | $ 151,395 |
Foreign | 20,142 | 17,592 | 24,612 |
Total. | $ 240,674 | $ 197,853 | $ 176,007 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Effective income tax rate reconciliation | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
State and local taxes (net of federal benefits) | 3.90% | 3.80% | 3.00% |
Effect of noncontrolling owned interest in earnings of partnerships | (0.10%) | (0.10%) | (0.20%) |
Manufacturing deduction | (2.50%) | ||
Tax credits, including foreign tax credit | (1.30%) | (1.60%) | (2.00%) |
Change in uncertain tax positions reserve | (0.10%) | 0.10% | 0.40% |
Other permanent differences | 0.50% | 0.60% | (0.10%) |
Other, net | 0.30% | (0.70%) | (0.60%) |
Impact of Tax Act and reduction of corporate tax rate | (0.10%) | (3.50%) | |
Effective income tax rate | 24.20% | 23.00% | 29.50% |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Dec. 29, 2018 |
Deferred Tax Assets | ||
Employee benefits | $ 22,420 | $ 20,914 |
Lease liability | 20,255 | |
Net operating loss carryforwards | 6,411 | 6,520 |
Foreign subsidiary capital loss carryforward | 519 | 504 |
Other tax credits | 620 | 586 |
Inventory | 993 | 1,090 |
Reserves on receivables | 1,266 | 802 |
Accrued expenses | 2,318 | 1,593 |
Other, net | 3,159 | 2,785 |
Gross deferred income tax assets | 57,961 | 34,794 |
Valuation allowance | (2,447) | (2,707) |
Deferred income tax assets | 55,514 | 32,087 |
Deferred Tax Liabilities | ||
Depreciation | (34,001) | (24,881) |
Intangibles | (21,375) | (20,225) |
Right of use assets | (20,255) | |
Deferred income tax liabilities | (75,631) | (45,106) |
Net deferred income tax liability | $ (20,117) | $ (13,019) |
INCOME TAXES - NOL and Credit C
INCOME TAXES - NOL and Credit Carryforwards (Details) $ in Thousands | Dec. 28, 2019USD ($) |
U.S. | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | $ 2,152 |
U.S. | 2029 - 2033 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 2,124 |
U.S. | 2034 - 2038 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 28 |
State | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 2,303 |
Tax Credits | 620 |
State | 2019 - 2023 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 173 |
Tax Credits | 620 |
State | 2024 - 2028 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 285 |
State | 2029 - 2033 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 748 |
State | 2034 - 2038 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 854 |
State | Thereafter | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 243 |
Foreign | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 1,956 |
Foreign | 2024 - 2028 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 1,279 |
Foreign | 2029 - 2033 | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 213 |
Foreign | Thereafter | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 464 |
Federal, state and foreign | |
Operating Loss and Credit Carryforwards | |
Net Operating Losses | 6,400 |
Capital Loss Carryforward | |
Operating Loss and Credit Carryforwards | |
Tax credit carryforward, valuation allowance | 600 |
Wholly-owned subsidiary | Capital Loss Carryforward | |
Operating Loss and Credit Carryforwards | |
Tax credit carryforward, valuation allowance | $ 500 |
INCOME TAXES - Income tax refor
INCOME TAXES - Income tax reforms (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Provisional Effect of Tax Cuts and Jobs Act of 2017 | |||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% |
Discrete net tax benefit | $ 6.1 | ||
Additional measurement period adjustment | $ 0.3 |
ACCOUNTING FOR UNCERTAINTY IN_3
ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Reconciliation of beginning and ending amount of unrecognized tax benefits [Roll Forward] | |||
Gross unrecognized tax benefits beginning of year | $ 4,378 | $ 4,000 | $ 3,381 |
Increase in tax positions for prior years | 4 | ||
Decrease in tax positions for prior years | (129) | (366) | |
Increase in tax positions for current year | 768 | 1,326 | 1,107 |
Settlements with taxing authorities | (2) | ||
Lapse in statute of limitations | (851) | (582) | (490) |
Gross unrecognized tax benefits end of year | 4,166 | 4,378 | 4,000 |
Income tax penalties and interest accrued | 500 | $ 500 | $ 700 |
Increase in unrecognized tax benefits is reasonably possible | $ 900 |
COMMITMENTS, CONTINGENCIES, A_2
COMMITMENTS, CONTINGENCIES, AND GUARANTEES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Long-term commitment | ||
Outstanding purchase commitments on capital projects | $ 33.8 | |
Surety Bonds and Letters of Credit | ||
Outstanding letters of credit | $ 37.3 | $ 30.3 |
Remediation reserves | ||
Environmental reserves, discount rate (as a percent) | 0.00% | |
Estimated costs to complete future remediation efforts | $ 2 | $ 2.1 |
Open Projects | ||
Surety Bonds and Letters of Credit | ||
Payment and performance bonds outstanding | 10.8 | |
Completed Projects | ||
Surety Bonds and Letters of Credit | ||
Payment and performance bonds outstanding | 9.2 | |
Insurance Contracts | ||
Surety Bonds and Letters of Credit | ||
Outstanding letters of credit | 27.5 | |
Revenue Bonds | ||
Surety Bonds and Letters of Credit | ||
Outstanding letters of credit | $ 9.8 |
SEGMENT REPORTING - NARRATIVE (
SEGMENT REPORTING - NARRATIVE (Details) - item | 12 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Concentration risk | |||
Number of markets in which the entity operates (in markets) | 3 | ||
Total Sales | Customer Concentration | Home Depot | |||
Concentration risk | |||
Percent of sales | 19.00% | 19.00% | 19.00% |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Segment Reporting | |||||||||||
NET SALES | $ 998,041 | $ 1,163,026 | $ 1,239,817 | $ 1,015,125 | $ 988,181 | $ 1,212,702 | $ 1,294,440 | $ 993,857 | $ 4,416,009 | $ 4,489,180 | $ 3,941,182 |
Interest expense (income) | 8,700 | 8,893 | 6,218 | ||||||||
Amortization expense | 6,325 | 6,393 | 4,860 | ||||||||
Depreciation | 60,494 | 54,949 | 48,536 | ||||||||
Segment operating profit (loss) | 244,906 | 207,263 | 181,469 | ||||||||
Segment assets | 1,889,477 | 1,647,548 | 1,889,477 | 1,647,548 | 1,464,677 | ||||||
Capital expenditures | 84,933 | 95,862 | 71,116 | ||||||||
Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
NET SALES | 418,064 | 424,888 | 392,540 | ||||||||
Corporate | |||||||||||
Segment Reporting | |||||||||||
Interest expense (income) | 10,577 | 10,130 | 6,234 | ||||||||
Depreciation | 10,244 | 9,466 | 8,443 | ||||||||
Segment operating profit (loss) | (42,696) | (29,161) | (26,264) | ||||||||
Segment assets | 245,659 | 101,896 | 245,659 | 101,896 | 54,171 | ||||||
Capital expenditures | 2,332 | 3,665 | 2,727 | ||||||||
North | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
NET SALES | 1,302,067 | 1,279,459 | 1,133,656 | ||||||||
Interest expense (income) | (36) | 58 | 4 | ||||||||
Amortization expense | 1,217 | 830 | 559 | ||||||||
Depreciation | 13,624 | 12,062 | 10,511 | ||||||||
Segment operating profit (loss) | 95,728 | 66,239 | 61,326 | ||||||||
Segment assets | 396,010 | 386,483 | 396,010 | 386,483 | 351,270 | ||||||
Capital expenditures | 21,292 | 17,820 | 23,026 | ||||||||
North | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
NET SALES | 57,675 | 56,682 | 67,161 | ||||||||
South | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
NET SALES | 936,964 | 1,024,747 | 837,370 | ||||||||
Interest expense (income) | (6) | 160 | |||||||||
Amortization expense | 1,200 | 1,292 | 607 | ||||||||
Depreciation | 9,310 | 8,244 | 6,880 | ||||||||
Segment operating profit (loss) | 64,517 | 60,049 | 46,646 | ||||||||
Segment assets | 249,053 | 266,503 | 249,053 | 266,503 | 240,661 | ||||||
Capital expenditures | 18,051 | 9,185 | 12,286 | ||||||||
South | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
NET SALES | 81,875 | 76,297 | 74,566 | ||||||||
West | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
NET SALES | 1,548,098 | 1,599,274 | 1,417,924 | ||||||||
Interest expense (income) | 108 | 197 | 293 | ||||||||
Amortization expense | 2,049 | 1,998 | 1,723 | ||||||||
Depreciation | 17,062 | 14,836 | 14,116 | ||||||||
Segment operating profit (loss) | 118,444 | 103,357 | 82,465 | ||||||||
Segment assets | 485,674 | 496,939 | 485,674 | 496,939 | 462,311 | ||||||
Capital expenditures | 19,682 | 26,024 | 23,212 | ||||||||
West | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
NET SALES | 52,601 | 56,004 | 83,245 | ||||||||
All Other | Operating Segments | |||||||||||
Segment Reporting | |||||||||||
NET SALES | 628,880 | 585,700 | 552,232 | ||||||||
Interest expense (income) | (1,949) | (1,486) | (473) | ||||||||
Amortization expense | 1,859 | 2,273 | 1,971 | ||||||||
Depreciation | 10,254 | 10,341 | 8,586 | ||||||||
Segment operating profit (loss) | 8,913 | 6,779 | 17,296 | ||||||||
Segment assets | $ 513,081 | $ 395,727 | 513,081 | 395,727 | 356,264 | ||||||
Capital expenditures | 23,576 | 39,168 | 9,865 | ||||||||
All Other | Intersegment net sales | |||||||||||
Segment Reporting | |||||||||||
NET SALES | $ 225,913 | $ 235,905 | $ 167,568 |
SEGMENT REPORTING - Information
SEGMENT REPORTING - Information Regarding Principal Geographic Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenues and Long-Lived Assets | |||||||||||
Net sales | $ 998,041 | $ 1,163,026 | $ 1,239,817 | $ 1,015,125 | $ 988,181 | $ 1,212,702 | $ 1,294,440 | $ 993,857 | $ 4,416,009 | $ 4,489,180 | $ 3,941,182 |
Long-Lived Tangible Assets | 506,483 | 376,638 | 506,483 | 376,638 | 344,356 | ||||||
United States | |||||||||||
Revenues and Long-Lived Assets | |||||||||||
Net sales | 4,308,618 | 4,382,356 | 3,821,366 | ||||||||
Long-Lived Tangible Assets | 469,605 | 342,326 | 469,605 | 342,326 | 313,976 | ||||||
Foreign | |||||||||||
Revenues and Long-Lived Assets | |||||||||||
Net sales | 107,391 | 106,824 | 119,816 | ||||||||
Long-Lived Tangible Assets | $ 36,878 | $ 34,312 | $ 36,878 | $ 34,312 | $ 30,380 |
SEGMENT REPORTING - Gross Sales
SEGMENT REPORTING - Gross Sales by Major Product Classification (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
Revenue | |||||||||||
Total Gross Sales | $ 4,492,183 | $ 4,565,749 | |||||||||
Total Gross Sales | 4,492,184 | 4,565,749 | $ 4,006,203 | ||||||||
Sales allowances | (76,175) | (76,569) | (65,021) | ||||||||
Total Net Sales | $ 998,041 | $ 1,163,026 | $ 1,239,817 | $ 1,015,125 | $ 988,181 | $ 1,212,702 | $ 1,294,440 | $ 993,857 | 4,416,009 | 4,489,180 | 3,941,182 |
Value-Added Sales | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 3,104,336 | 2,938,729 | 2,621,641 | ||||||||
Trusses - residential, modular and manufactured housing | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 438,621 | 421,996 | 368,591 | ||||||||
Fencing | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 180,772 | 180,783 | 187,905 | ||||||||
Decking and railing - composite, wood and other | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 310,311 | 261,778 | 244,910 | ||||||||
Turn-key framing and installed sales | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 159,307 | 151,397 | 149,520 | ||||||||
Industrial packaging and components | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 676,214 | 591,314 | 471,262 | ||||||||
Engineered wood products (eg. LVL; i-joist) | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 86,954 | 83,222 | 76,507 | ||||||||
In-store fixtures | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 274,580 | 252,341 | 260,174 | ||||||||
Manufactured brite and other lumber | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 68,725 | 92,255 | 109,582 | ||||||||
Wall panels | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 64,357 | 69,889 | 61,226 | ||||||||
Outdoor DIY products (eg. stakes; landscape ties) | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 124,586 | 128,711 | 110,327 | ||||||||
Construction and building materials (eg. door packages; drywall) | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 320,603 | 314,965 | 265,048 | ||||||||
Lattice - plastic and wood | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 70,448 | 62,598 | 48,736 | ||||||||
Manufactured brite and other panels | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 79,122 | 94,469 | 81,143 | ||||||||
Siding, trim and moulding | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 111,230 | 107,873 | 85,016 | ||||||||
Hardware | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 16,069 | 16,742 | 21,218 | ||||||||
Manufactured treated lumber | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 92,277 | 96,450 | 69,844 | ||||||||
Other | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 30,160 | 11,946 | 10,632 | ||||||||
Commodity-Based Sales | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 1,387,848 | 1,627,020 | 1,384,562 | ||||||||
Non-manufactured brite and other lumber | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 594,534 | 700,143 | 545,430 | ||||||||
Non-manufactured treated lumber | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 525,030 | 585,628 | 523,245 | ||||||||
Non-manufactured brite and other panels | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 205,678 | 278,898 | 265,909 | ||||||||
Non-manufactured treated panels | |||||||||||
Revenue | |||||||||||
Total Gross Sales | 39,340 | 42,958 | 36,913 | ||||||||
Other | |||||||||||
Revenue | |||||||||||
Total Gross Sales | $ 23,266 | $ 19,393 | $ 13,065 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 | |
NET SALES | $ 4,492,184 | $ 4,565,749 | $ 4,006,203 | ||||||||
Total Gross Sales | 4,492,183 | 4,565,749 | |||||||||
Gross profit | $ 157,255 | $ 187,270 | $ 186,726 | $ 154,267 | $ 137,643 | $ 158,673 | $ 165,689 | $ 130,889 | 685,518 | 592,894 | 542,826 |
NET EARNINGS | 38,676 | 52,581 | 55,145 | 36,002 | 31,632 | 42,068 | 45,130 | 33,582 | 182,404 | 152,412 | 124,040 |
Net earnings attributable to controlling interest | $ 37,736 | $ 51,859 | $ 54,515 | $ 35,540 | $ 30,502 | $ 41,219 | $ 44,044 | $ 32,833 | $ 179,650 | $ 148,598 | $ 119,512 |
EARNINGS PER SHARE - BASIC (USD per share) | $ 0.61 | $ 0.84 | $ 0.88 | $ 0.58 | $ 0.50 | $ 0.67 | $ 0.71 | $ 0.53 | $ 2.91 | $ 2.41 | $ 1.95 |
EARNINGS PER SHARE - DILUTED (USD per share) | $ 0.61 | $ 0.84 | $ 0.88 | $ 0.58 | $ 0.50 | $ 0.66 | $ 0.71 | $ 0.53 | $ 2.91 | $ 2.40 | $ 1.94 |
Minimum | |||||||||||
Length of fiscal quarter | 91 days | 91 days |