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Acquisitions (Tables) | 12 Months Ended
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Dec. 31, 2013
Purchase Price Allocation | The purchase price allocation is preliminary. Our estimates and assumptions are subject to change as more information becomes available. The primary areas of the purchase price allocation that are not yet finalized relate to the valuation of fixed assets, income taxes, and residual goodwill. The following table summarizes the allocation of the purchase price to the assets acquired and liabilities assumed, based on our current estimates of the fair value at the date of the acquisition (dollars in thousands):
Current assets: |
Cash and cash equivalents | $ | 121,658 |
Accounts receivable | 270,364 |
Inventories | 286,277 |
Deferred income taxes | 9,144 |
Prepaid expenses and other current assets | 8,624 |
Total current assets | 696,067 |
Property, plant, and equipment (a) | 1,401,183 |
Intangible assets (b): |
Customer relationships | 256,400 |
Trademarks and trade names | 20,600 |
Goodwill (c) | 458,579 |
Other long-term assets | 21,786 |
Assets acquired | 2,854,615 |
Current liabilities | 322,230 |
Long-term debt | 829,750 |
Deferred tax liabilities | 281,463 |
Other long-term liabilities | 131,276 |
Liabilities assumed | 1,564,719 |
Net assets acquired | $ | 1,289,896 |
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(a) | Property and equipment acquired are being depreciated on a straight-line basis over their estimated remaining lives, which range from one to 30 years.
(b) | We are amortizing the intangible assets on a straight-line basis over the following (in years):
Customer relationships | 15 | - | 20
Trademarks and trade names | 5 | - | 20
(c) | Goodwill is the excess of purchase price over the fair value of tangible and identifiable intangible assets acquired and liabilities assumed. Goodwill generated from the acquisition is primarily attributable to expected synergies and the assembled workforce. Goodwill recognized in the transaction is not deductible for income tax purposes; however, we assumed $1.9 million of goodwill that Boise had been amortizing in connection with previous acquisitions, which we will continue to amortize and deduct for income tax purposes.
Pro Forma Financial Information | The following pro forma financial information presents the combined results of operations as if Boise had been combined with us on January 1, 2012. The pro forma results are intended for information purposes only and do not purport to represent what the combined companies' results of operations would actually have been had the transactions in fact occurred on January 1, 2012. They also do not reflect any cost savings, operating synergies, or revenue enhancements that we may achieve or the costs necessary to achieve those cost savings, operating synergies, revenue enhancements, or integration efforts (dollars in millions, except per-share amounts).
| Pro Forma (Unaudited)
| Year Ended December 31
| 2013 |  | 2012
Sales | $ | 5,696.2 |  |  | $ | 5,355.9 |
Net income (a) | $ | 492.4 |  |  | $ | 226.0 |
Net income per share—diluted | $ | 5.05 |  |  | $ | 2.32 |
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(a) | The 2013 and 2012 unaudited pro forma financial information presented in the table above has been adjusted to give effect to adjustments that are directly related to the acquisition, factually supportable, and expected to have a continuing impact. These adjustments include, but are not limited to, the application of our accounting policies; elimination of related party transactions; depreciation and amortization related to fair value adjustments to property, plant and equipment and intangible assets; and interest expense on acquisition-related debt.
The 2013 unaudited pro forma net income was also adjusted to exclude $21.5 million of acquisition inventory step-up expense, $17.2 million of acquisition-related costs, which primarily consist of advisory, legal, accounting, valuation and other professional or consulting fees, and $11.6 million of acquisition-related debt financing costs. Included in 2013 pro forma net income is $166.0 million of income from the reversal of tax reserves related to alternative fuel mixture credits, $17.4 million of integration-related and other costs, which primarily consist of severance and other employee costs and professional services.

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- Definition Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (h)(2)-(3) -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463 + Details
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- Definition Tabular disclosure of a material business combination completed during the period, including background, timing, and recognized assets and liabilities. This table does not include leveraged buyouts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1392-128463 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=25497992&loc=d3e1486-128463 + Details
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