(19)

Plant Consolidation

March

18,

2015,

the Company committed to move forward with a plan to cease operations at its Raritan, New Jersey, plant and consolidate operations into its Newburyport, Massachusetts, facility and other UFP facilities. The Company’s decision was in response to a continued decline in business at the Raritan facility and the recent purchase of the

137,000

-square-foot facility in Newburyport. The activities related to this consolidation are complete.

The Company also relocated all operations in its Haverhill, Massachusetts, and Byfield, Massachusetts facilities and plans to relocate certain operations in its Georgetown, Massachusetts facility to Newburyport. The Haverhill and Byfield relocations were complete at

December

31,

2015

and the Georgetown relocation is substantially complete.

The Company has incurred approximately

$2.1

million in

one

-time expenses in connection with the Massachusetts consolidations. Included in this amount are approximately

$180,000

relating to employee severance payments and relocation costs, approximately

$1.5

million in moving expenses and expenses associated with vacating the Raritan, Haverhill and Byfield properties, and approximately

$360,000

in lease termination costs. Total cash charges were approximately

$2.0

million. The Company expects annual cost savings of approximately

$1.0

million as a result of these consolidations.

July

16,

2014,

the Company committed to move forward with a plan to cease operations at its Costa Mesa, California, plant and consolidate operations into its Rancho Dominguez, California, facility and other UFP facilities. The Company’s decision was in response to the

December

31,

2014,

expiration of the lease on the Costa Mesa facility as well as the close proximity of the

two

properties. The California consolidation was complete at

December

31,

2015.

The Company has recorded the following restructuring costs associated with the consolidations discussed above for the fiscal years ended

December

31,

2016

and

2015

(in thousands):

	2016		2015						2014
Restructuring Costs	MA		MA		CA		Total		MI		CA		Total

Employee severance	$	-	$	178	$	18	$	196	$	237	$	10	$	247
Relocation		420		1,138		66		1,204		356		501		857
Lease termination		-		356		-		356		-		-		-
Workforce training		-		-		-		-		373		-		373
Plant infrastructure		-		-		-		-		79		-		79
														-
Total restructuring costs	$	420	$	1,672	$	84	$	1,756	$	1,045	$	511	$	1,556

The

2016

costs were reclassified in the Consolidated Statement of Income as “Restructuring Costs” from Cost of Sales. The

2015

costs were reclassified in the Consolidated Statement of Income as “Restructuring Costs” as follows:

$1,669,000

from Cost of Sales,

$36,000

from Selling, General and Administrative expenses and

$51,000

from Gain on sales of property, plant and equipment. The

2014

costs were reclassified in the Consolidated Statement of Income as “Restructuring Costs” as follows:

$1,385,000

from Cost of Sales,

$82,000

from Selling, General and Administrative expenses and

$89,000

from Gain on sales of property, plant and equipment.