Level 3 Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of the statutory U.S. federal tax provision and the reported tax provision is as follows (dollars in thousands):



	Year Ended December 31, 2013

Income before income taxes	$	78,148
Statutory U.S. income tax rate	35.0		%

Statutory tax provision	$	27,352
State taxes	2,545
Other	(19		)
Total	$	29,878

Effective income tax rate excluding discrete item	38.2		%

Recognition of beginning deferred tax balances	$	(68,666	)

Income tax benefit with discrete item	$	(38,788	)

Effective income tax rate with discrete item	(49.6		)%

Income Tax Provision (Benefit) [Table Text Block]

The income tax provision (benefit) shown in the Consolidated Statements of Operations includes the following (dollars in thousands):



	Year Ended December 31, 2013

Current income tax provision (benefit)
Federal	$	17,618
State	3,172
Foreign	22
Total current	20,812

Deferred income tax provision (benefit)
Federal	(54,611		)
State	(4,989		)
Foreign	—
Total deferred	(59,600		)
Income tax provision (benefit)	$	(38,788	)

Net Deferred Tax Assets and Liabilities [Table Text Block]

The components of our net deferred tax assets and liabilities at December 31, 2013, and as of our conversion are as follows (dollars in thousands):



	December 31, 2013			February 4, 2013
Deferred tax assets
Employee benefits (a)	$	55,331		$	87,783
Deferred financing costs	540			279
Intangible assets and other	386			632
Inventories	4,657			3,124
Canadian net operating loss carryforward (b)	17,180			15,488
Capital loss carryforward (b)	—			6,104
Accrued sales credits	—			5,372
Other	3,803			3,535
Gross deferred tax assets	81,897			122,317
Valuation allowance (b)	(17,180		)	(21,592		)
Net deferred tax assets	$	64,717		$	100,725

Deferred tax liabilities
Property and equipment	$	40,976		$	27,388
Intangible assets and other	3,968			3,883
Other	862			788
Deferred tax liabilities	$	45,806		$	32,059

As reported on our Consolidated Balance Sheets
Current deferred tax assets, net	$	18,151		$	12,750
Noncurrent deferred tax assets, net	760			55,916
Total deferred tax assets, net	$	18,911		$	68,666

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(a)	As of December 31, 2013, the decrease relates to the tax effect of changes in recorded pension liabilities. See Note 9, Retirement and Benefit Plans, for more information.

(b)

Boise Cascade Wood Products Holdings Corp., a wholly owned, fully consolidated operating entity, has an investment in foreign subsidiaries. At December 31, 2013, and upon conversion on February 4, 2013, the foreign subsidiaries had $17.2 million and $15.5 million, respectively, of deferred tax assets. The deferred tax assets resulted primarily from net operating losses and were fully offset by a valuation allowance. In addition, upon conversion, Boise Cascade Wood Products Holdings Corp. had $6.1 million of deferred tax assets related to the capital loss carryforward from the sale of our subsidiaries in Brazil and the United Kingdom. The capital loss carryforward was fully offset by a valuation allowance, because it was more likely than not that we would not be able to utilize the capital loss carryforward before it expired in 2013.

Pretax income (loss) from domestic and foreign sources is as follows (dollars in thousands):



	December 31, 2013
Domestic	$	82,529
Foreign	(4,381		)
Income before income taxes	$	78,148