UFP INDUSTRIES INC Goodwill & Intangibles Disclosure
D.GOODWILL AND OTHER INTANGIBLE ASSETS
As described in Note M — Segment Reporting, our segment structure is based upon the markets we serve and goodwill has been allocated to the segments using a relative fair value approach. The changes in the net carrying amount of goodwill by reporting segment for the years ended December 27, 2025 and December 28, 2024, are as follows (in thousands):
| Retail | | Packaging | | Construction | | All Other | | Corporate | | Total | |||||||
Balance as of December 30, 2023 |
| $ | 84,204 |
| $ | 141,042 |
| $ | 87,805 |
| $ | 23,262 | $ | — |
| $ | 336,313 | |
2024 Acquisitions |
| — | 5,705 | — | — | — |
| 5,705 | ||||||||||
Foreign Exchange, Net |
| (88) | — | (404) | (1,687) | — |
| (2,179) | ||||||||||
Balance as of December 28, 2024 |
| $ | 84,116 |
| $ | 146,747 |
| $ | 87,401 |
| $ | 21,575 | $ | — |
| $ | 339,839 | |
2025 Acquisitions |
| — | — | 761 | — | — |
| 761 | ||||||||||
2025 Purchase Accounting Adjustments | — | 1,357 | — | — | — | 1,357 | ||||||||||||
Foreign Exchange, Net |
| 58 | — | 235 | 1,671 | — |
| 1,964 | ||||||||||
Balance as of December 27, 2025 | $ | 84,174 |
| $ | 148,104 | $ | 88,397 | $ | 23,246 | $ | — | $ | 343,921 | |||||
As of the date of the most recent goodwill impairment test, which utilized data and assumptions as of September 27, 2025, all reporting units had fair values that were substantially in excess of their carrying values.
Indefinite-lived intangible assets totaled $7.3 million as of December 27, 2025 and December 28, 2024 related to the commercial unit within the Construction segment, the international unit within the All Other segment, and the Deckorators unit within the Retail segment.
The following amounts were included in other amortizable intangible assets, net as of December 27, 2025 and December 28, 2024 (in thousands):
2025 | 2024 | |||||||||||||||||
| | Accumulated | | | | Accumulated | | |||||||||||
Assets | Amortization | Net Value | Assets | Amortization | Net Value | |||||||||||||
Non-compete agreements | $ | 5,472 | $ | (4,216) | $ | 1,256 | $ | 8,908 | $ | (6,332) | $ | 2,576 | ||||||
Customer relationships and other |
| 165,174 |
| (64,412) | 100,762 |
| 165,633 |
| (51,645) | 113,988 | ||||||||
Patents |
| 1,566 |
| (1,048) | 518 |
| 1,602 |
| (988) | 614 | ||||||||
Technology | 11,200 | (3,196) | 8,004 | 12,600 | (3,406) | 9,194 | ||||||||||||
Tradename | 38,552 | (18,153) | 20,399 | 36,946 | (15,085) | 21,861 | ||||||||||||
Software | 8,687 | (6,010) | 2,677 | 8,605 | (4,340) | 4,265 | ||||||||||||
Total | $ | 230,651 | $ | (97,035) | $ | 133,616 | $ | 234,294 | $ | (81,796) | $ | 152,498 | ||||||
Amortization is computed principally by the straight-line method over the estimated useful lives of the intangible assets as follows:
| | Weighted Average | ||
Intangible Asset Type | Estimated Useful Life | Amortization Period | ||
Non-compete agreements |
| 2 to 15 years |
| 9.4 years |
Customer relationships and other |
| 10 to 20 years |
| 11.4 years |
Patents | 10 years | 10 years | ||
Technology | 10 to 12 years | 11.8 years | ||
Tradename (amortizable) |
| 5 to 25 years |
| 10.5 years |
Software | 3 to 4 years | 3 years |
Amortization expense of intangibles totaled $22.7 million, $23.5 million and $21.3 million in 2025, 2024 and 2023, respectively, and is recorded in Selling, general, and administrative expenses. The estimated amortization expense for intangibles for each of the five succeeding fiscal years is as follows (in thousands):
2026 | | $ | 21,101 |
2027 |
| 19,324 | |
2028 |
| 18,654 | |
2029 |
| 17,532 | |
2030 |
| 15,067 | |
Thereafter |
| 41,938 | |
Total | $ | 133,616 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 1, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Mar 3, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 1, 2017 | |
| 2015 | Feb 24, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.