XML 47 R40.htm IDEA: XBRL DOCUMENT v2.4.1.9
Segment Information (Tables)
 12 Months Ended
Dec. 31, 2014
Segment Reporting [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
 
 
2014
 
2013
 
2012
 
 
(millions)
Wood Products
 
 
 
 
 
 
Plywood and veneer
 
$
413.6

 
$
367.8

 
$
324.6

Engineered wood products
 
125.9

 
104.4

 
87.9

Lumber
 
113.7

 
97.3

 
77.4

Byproducts
 
56.1

 
42.5

 
44.6

Particleboard
 
52.3

 
40.2

 
33.1

Other
 
25.7

 
21.7

 
21.8

 
 
787.2

 
674.0

 
589.3

 
 
 
 
 
 
 
Building Materials Distribution  
 
 
 
 
 
 
Commodity
 
1,376.1

 
1,333.2

 
1,092.7

General line
 
937.3

 
857.9

 
794.9

Engineered wood products
 
473.1

 
408.4

 
302.2

 
 
2,786.5

 
2,599.5

 
2,189.8

 
 
$
3,573.7

 
$
3,273.5

 
$
2,779.1
Segment information [Table Text Block]
An analysis of our operations by segment is as follows:
 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
 
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
Capital
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
Expendi-
 
 
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
(b)
 
tures
 
Assets
 
 
(millions)
 
 
 
 
Year Ended December 31, 2014
 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Wood Products
 
$
787.2

 
$
529.8

 
$
1,317.0

 
$
108.4

 
$
41.5

 
$
149.8

 
$
40.3

 
$
533.1

Building Materials Distribution
 
2,786.5

 
0.1

 
2,786.7

 
56.7

 
9.8

 
66.5

 
20.3

 
483.6

Corporate and Other
 
—

 
—

 
—

 
(19.9
)
 
0.2

 
(19.8
)
 
0.6

 
203.9

Intersegment eliminations
 
—

 
(529.9
)
 
(529.9
)
 
—

 
—

 
—

 
—

 
—

 
 
$
3,573.7

 
$
—

 
$
3,573.7

 
145.1

 
$
51.4

 
$
196.6

 
$
61.2

 
$
1,220.5

Interest expense
 
 
 
 
 
 
 
(22.0
)
 
 
 


 
 
 
 
Interest income
 
 
 
 
 
 
 
0.2

 
 
 


 
 
 
 
 
 

 


 


 
$
123.3

 


 
 
 
 
 
 

 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
Capital
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
Expendi-
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
tures
 
 
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
(b)
 
(a)
 
Assets
 
 
(millions)
 
 
 
 
Year Ended December 31, 2013
 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Wood Products
 
$
674.0

 
$
460.1

 
$
1,134.1

 
$
77.7

 
$
28.7

 
$
106.3

 
$
133.6

 
$
514.5

Building Materials Distribution
 
2,599.5

 
0.1

 
2,599.6

 
39.9

 
9.2

 
49.2

 
14.7

 
456.1

Corporate and Other
 
—

 
—

 
—

 
(19.3
)
 
0.1

 
(19.1
)
 
0.5

 
133.6

Intersegment eliminations
 
—

 
(460.2
)
 
(460.2
)
 
—

 
—

 
—

 
—

 
—

 
 
$
3,273.5

 
$
—

 
$
3,273.5

 
98.3

 
$
38.0

 
$
136.4

 
$
148.8

 
$
1,104.2

Interest expense
 
 
 
 
 
 
 
(20.4
)
 
 
 
 
 
 
 
 
Interest income
 
 
 
 
 
 
 
0.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
78.1

 


 


 
 
 
 


 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
Capital
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
Expendi-
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
tures
 
 
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
(b)
 
(a)
 
Assets
 
 
(millions)
 
 
 
 
Year Ended December 31, 2012
 
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Wood Products
 
$
589.3

 
$
353.9

 
$
943.3

 
$
55.8

 
$
24.4

 
$
80.2

 
$
22.7

 
$
366.1

Building Materials Distribution
 
2,189.8

 
0.5

 
2,190.2

 
24.0

 
8.8

 
32.9

 
7.1

 
415.7

Corporate and Other
 
—

 
—

 
—

 
(16.7
)
 
0.1

 
(16.5
)
 
—

 
46.0

Intersegment eliminations
 
—

 
(354.4
)
 
(354.4
)
 
—

 
—

 
—

 
—

 
—

 
 
$
2,779.1

 
$
—

 
$
2,779.1

 
63.2

 
$
33.4

 
$
96.6

 
$
29.7

 
$
827.8

Interest expense
 
 
 
 
 
 
 
(21.8
)
 
 
 
 
 
 
 
 
Interest income
 
 
 
 
 
 
 
0.4

 
 
 
 
 
 
 
 
 
 


 


 


 
$
41.8

 


 


 
 
 
 
___________________________________ 

(a)
Capital spending in 2013 for Wood Products includes $103.0 million for the acquisition of two plywood manufacturing facilities in the Carolinas. Capital spending in 2012 for Wood Products includes $2.4 million for the acquisition of a sawmill in Arden, Washington.

(b)
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.
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]
The following is a reconciliation of net income to EBITDA for the consolidated company:
 
 
 
Year Ended December 31
 
 
2014
 
2013
 
2012
 
 
(millions)
Net income (1)
 
$
80.0

 
$
116.9

 
$
41.5

Interest expense
 
22.0

 
20.4

 
21.8

Interest income
 
(0.2
)
 
(0.2
)
 
(0.4
)
Income tax provision (benefit) (1)
 
43.3

 
(38.8
)
 
0.3

Depreciation and amortization
 
51.4

 
38.0

 
33.4

EBITDA
 
$
196.6

 
$
136.4

 
$
96.6


  _______________________________________ 

(1)
The year ended December 31, 2013, includes a $68.7 million income tax benefit associated with the recording of net deferred tax assets upon our conversion to a corporation.