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Segment Information Level 3 Segment Information (Tables)
 6 Months Ended 12 Months Ended
Jun. 30, 2013
Dec. 31, 2012
Segment Information [Abstract]    
Sales by product line [Table Text Block]  
Segment sales to external customers, including related parties, by product line are as follows:

 
 
Year Ended December 31
 
 
2012
 
2011
 
2010
 
 
(millions)
Building Materials Distribution  
 
 
 
 
 
 
Commodity
 
$
1,092.7

 
$
835.1

 
$
879.0

General line
 
794.9

 
722.0

 
697.0

Engineered wood products
 
302.2

 
220.8

 
200.6

 
 
2,189.8

 
1,777.9

 
1,776.6

Wood Products
 
 
 
 
 
 
Plywood and veneer
 
324.6

 
214.5

 
224.0

Engineered wood products
 
87.9

 
92.1

 
86.5

Lumber
 
77.4

 
69.6

 
67.5

Byproducts
 
44.6

 
44.5

 
33.9

Particleboard
 
33.1

 
26.1

 
28.2

Other
 
21.8

 
23.3

 
24.0

 
 
589.3

 
470.2

 
464.0

 
 
$
2,779.1

 
$
2,248.1

 
$
2,240.6
Segment information [Table Text Block]
An analysis of our operations by segment is as follows: 
 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
(a)
 
 
(millions)
Three Months Ended June 30, 2013
 
 

 
 

 
 

 
 

 
 

Wood Products
 
$
170.8

 
$
109.6

 
$
280.4

 
$
23.0

 
$
6.5

 
$
29.6

Building Materials Distribution
 
681.5

 
—

 
681.5

 
3.3

 
2.2

 
5.5

Corporate and Other
 
—

 
—

 
—

 
(4.4
)
 
—

 
(4.4
)
Intersegment eliminations
 
—

 
(109.6
)
 
(109.6
)
 
—

 
—

 
—

 
 
$
852.3

 
$
—

 
$
852.3

 
21.9

 
$
8.8

 
$
30.7

Interest expense
 
 
 
 
 
 
 
(4.8
)
 
 
 


Interest income
 
 
 
 
 
 
 
0.1

 
 
 


 
 

 


 


 
$
17.2

 


 
 

 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
(a)
 
 
(millions)
Three Months Ended June 30, 2012
 
 

 
 

 
 

 
 

 
 

Wood Products
 
$
152.4

 
$
89.4

 
$
241.8

 
$
15.5

 
$
6.1

 
$
21.7

Building Materials Distribution
 
580.5

 
—

 
580.5

 
8.7

 
2.2

 
10.9

Corporate and Other
 
—

 
—

 
—

 
(4.4
)
 
—

 
(4.4
)
Intersegment eliminations
 
—

 
(89.4
)
 
(89.4
)
 
—

 
—

 
—

 
 
$
732.9

 
$
—

 
$
732.9

 
19.9

 
$
8.3

 
$
28.2

Interest expense
 
 
 
 
 
 
 
(4.8
)
 
 
 
 
Interest income
 
 
 
 
 
 
 
0.1

 
 
 
 
 
 


 


 


 
$
15.1

 


 
 
 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
(a)
 
 
(millions)
Six Months Ended June 30, 2013
 
 

 
 

 
 

 
 

 
 

Wood Products
 
$
334.6

 
$
215.1

 
$
549.6

 
$
43.9

 
$
12.8

 
$
56.6

Building Materials Distribution
 
1,262.6

 
—

 
1,262.6

 
11.3

 
4.4

 
15.7

Corporate and Other
 
—

 
—

 
—

 
(8.6
)
 
0.1

 
(8.6
)
Intersegment eliminations
 
—

 
(215.1
)
 
(215.1
)
 
—

 
—

 
—

 
 
$
1,597.2

 
$
—

 
$
1,597.2

 
46.5

 
$
17.2

 
$
63.7

Interest expense
 
 
 
 
 
 
 
(9.7
)
 
 
 
 
Interest income
 
 
 
 
 
 
 
0.1

 
 
 
 
 
 
 
 
 
 
 
 
$
36.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
(a)
 
 
(millions)
Six Months Ended June 30, 2012
 
 

 
 

 
 

 
 

 
 

Wood Products
 
$
288.0

 
$
165.1

 
$
453.0

 
$
26.4

 
$
12.0

 
$
38.4

Building Materials Distribution
 
1,032.0

 
—

 
1,032.0

 
7.9

 
4.4

 
12.3

Corporate and Other
 
—

 
—

 
—

 
(7.9
)
 
0.1

 
(7.9
)
Intersegment eliminations
 
—

 
(165.1
)
 
(165.1
)
 
—

 
—

 
—

 
 
$
1,319.9

 
$
—

 
$
1,319.9

 
26.3

 
$
16.5

 
$
42.7

Interest expense
 
 
 
 
 
 
 
(9.6
)
 
 
 
 
Interest income
 
 
 
 
 
 
 
0.2

 
 
 
 
 
 
 
 
 
 
 
 
$
16.9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
___________________________________ 

(a)
EBITDA is defined as income (loss) before interest (interest expense and interest income), income taxes, and depreciation and amortization. EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and to decide how to allocate resources to segments. We believe EBITDA is useful to investors because it provides a means to evaluate the operating performance of our segments and our company on an ongoing basis using criteria that are used by our internal decision makers and because it is frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. We believe EBITDA is a meaningful measure because it presents a transparent view of our recurring operating performance and allows management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. EBITDA, however, is not a measure of our liquidity or financial performance under generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income (loss), income (loss) from operations, or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of EBITDA instead of net income (loss) or segment income (loss) has limitations as an analytical tool, including the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for the limitations of EBITDA by relying on our GAAP results. Our measure of EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

The following is a reconciliation of net income to EBITDA:
 
 
 
Three Months Ended
June 30
 
Six Months Ended
June 30
 
 
2013
 
2012
 
2013
 
2012
 
 
(millions)
Net income(1)
 
$
10.4

 
$
15.0

 
$
91.2

 
$
16.7

Interest expense
 
4.8

 
4.8

 
9.7

 
9.6

Interest income
 
(0.1
)
 
(0.1
)
 
(0.1
)
 
(0.2
)
Income tax provision (benefit)(1)
 
6.8

 
0.1

 
(54.3
)
 
0.1

Depreciation and amortization
 
8.8

 
8.3

 
17.2

 
16.5

EBITDA
 
$
30.7

 
$
28.2

 
$
63.7

 
$
42.7


 _______________________________________ 

(1)
The six months ended June 30, 2013, includes $68.7 million of income tax benefit associated with the recording of net deferred tax assets upon our conversion to a corporation.
An analysis of our operations by segment is as follows:
 
 
 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
Capital
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
Expendi-
 
 
 
 
 
 
Related
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
tures
 
 
 
 
Trade
 
Parties
 
segment
 
Total
 
Taxes
 
Amortization
 
(d)
 
(a)
 
Assets
 
 
(millions)
Year Ended December 31, 2012
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Building Materials Distribution
 
$
2,189.8

 
$
—

 
$
0.5

 
$
2,190.2

 
$
24.0

 
$
8.8

 
$
32.9

 
$
7.1

 
$
415.7

Wood Products
 
569.5

 
19.8

 
353.9

 
943.3

 
55.8

 
24.4

 
80.2

 
22.7

 
366.1

Corporate and Other
 
—

 
—

 
—

 
—

 
(16.7
)
 
0.1

 
(16.5
)
 
—

 
54.6

Intersegment eliminations
 
—

 
—

 
(354.4
)
 
(354.4
)
 
—

 
—

 
—

 
—

 
—

 
 
$
2,759.3

 
$
19.8

 
$
—

 
$
2,779.1

 
63.2

 
$
33.4

 
$
96.6

 
$
29.7

 
$
836.4

Interest expense
 
 
 
 
 
 
 
 
 
(21.8
)
 
 
 


 
 
 
 
Interest income
 
 
 
 
 
 
 
 
 
0.4

 
 
 


 
 
 
 
 
 

 


 


 


 
$
41.8

 


 
 
 

 


 
 
 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
Capital
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
Expendi-
 
 
 
 
 
 
Related
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
tures
 
 
 
 
Trade
 
Parties
 
segment
 
Total
 
Taxes
 
Amortization
 
(d)
 
(a)
 
Assets
 
 
(millions)
Year Ended December 31, 2011
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Building Materials Distribution (b)
 
$
1,777.9

 
$
—

 
$
1.4

 
$
1,779.4

 
$
2.0

 
$
8.4

 
$
10.4

 
$
10.0

 
$
366.9

Wood Products (b)
 
451.4

 
18.8

 
242.3

 
712.5

 
(15.1
)
 
28.4

 
13.3

 
29.3

 
351.6

Corporate and Other
 
—

 
—

 
—

 
—

 
(14.5
)
 
0.2

 
(14.2
)
 
—

 
184.3

Intersegment eliminations
 
—

 
—

 
(243.7
)
 
(243.7
)
 
—

 
—

 
—

 
—

 
—

 
 
$
2,229.3

 
$
18.8

 
$
—

 
$
2,248.1

 
(27.5
)
 
$
37.0

 
$
9.5

 
$
39.3

 
$
902.8

Interest expense
 
 
 
 
 
 
 
 
 
(19.0
)
 
 
 
 
 
 
 
 
Interest income
 
 
 
 
 
 
 
 
 
0.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
(46.1
)
 


 


 


 


 
 
 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
 
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
Capital
 
 
 
 
 
 
Related
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
Expendi-
 
 
 
 
Trade
 
Parties
 
segment
 
Total
 
Taxes
 
Amortization
 
(d)
 
tures
 
Assets
 
 
(millions)
Year Ended December 31, 2010
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Building Materials Distribution (c)
 
$
1,776.6

 
$
—

 
$
1.4

 
$
1,778.0

 
$
11.6

 
$
7.5

 
$
19.1

 
$
12.9

 
$
356.4

Wood Products (c)
 
438.8

 
25.3

 
223.4

 
687.4

 
(8.1
)
 
27.1

 
19.0

 
22.9

 
335.3

Corporate and Other
 
—

 
—

 
—

 
—

 
(16.3
)
 
0.3

 
(16.0
)
 
—

 
260.6

Intersegment eliminations
 
—

 
—

 
(224.8
)
 
(224.8
)
 
—

 
—

 
—

 
—

 
—

 
 
$
2,215.3

 
$
25.3

 
$
—

 
$
2,240.6

 
(12.8
)
 
$
34.9

 
$
22.1

 
$
35.8

 
$
952.2

Interest expense
 
 
 
 
 
 
 
 
 
(21.0
)
 
 
 
 
 
 
 
 
Interest income
 
 
 
 
 
 
 
 
 
0.8

 
 
 
 
 
 
 
 
 
 


 


 


 


 
$
(33.0
)
 


 


 


 


___________________________________ 

(a)
Capital spending in 2012 for Wood Products includes $2.4 million for the acquisition of a sawmill in Arden, Washington. Capital spending in 2011 for Wood Products includes $5.8 million for the acquisition of a laminated beam and decking manufacturing plant in Homedale, Idaho.

(b)
In 2011, we permanently closed a laminated beam plant in our Wood Products segment, and we recorded the related expense of $1.3 million in "Other (income) expense, net" and $0.4 million of accelerated depreciation in "Depreciation and Amortization" in our Consolidated Statement of Operations for the year ended December 31, 2011. Also, during the year ended December 31, 2011, we recorded $2.0 million of noncash asset write-downs in "Other (income) expense, net," of which $1.2 million was recorded in our Building Materials Distribution segment and $0.9 million was recorded in our Wood Products segment.
 
(c)
Included $4.6 million of income for cash received from a litigation settlement related to vendor product pricing. We recorded $4.1 million in our Building Materials Distribution segment and $0.5 million in our Wood Products segment.

(d)
EBITDA is defined as income (loss) before interest (interest expense and interest income), income taxes, and depreciation and amortization. EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and to decide how to allocate resources to segments. We believe EBITDA is useful to investors because it provides a means to evaluate the operating performance of our segments and our company on an ongoing basis using criteria that are used by our internal decision makers and because it is frequently used by investors and other interested parties when comparing companies in our industry that have different financing and capital structures and/or tax rates. We believe EBITDA is a meaningful measure because it presents a transparent view of our recurring operating performance and allows management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. EBITDA, however, is not a measure of our liquidity or financial performance under generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income (loss), income (loss) from operations, or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of EBITDA instead of net income (loss) or segment income (loss) has limitations as an analytical tool, including the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation and amortization, which represent unavoidable operating costs. Management compensates for the limitations of EBITDA by relying on our GAAP results. Our measure of EBITDA is not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.

The following is a reconciliation of net income (loss) to EBITDA for the consolidated company:
 
 
 
Year Ended December 31
 
 
2012
 
2011
 
2010
 
 
(millions)
Net income (loss)
 
$
41.5

 
$
(46.4
)
 
$
(33.3
)
Interest expense
 
21.8

 
19.0

 
21.0

Interest income
 
(0.4
)
 
(0.4
)
 
(0.8
)
Income tax provision
 
0.3

 
0.2

 
0.3

Depreciation and amortization
 
33.4

 
37.0

 
34.9

EBITDA
 
$
96.6

 
$
9.5

 
$
22.1