Consolidating Guarantor and Nonguarantor Financial Information

6 Months Ended

Jun. 30, 2015

Disclosure Text Block Supplement [Abstract]

Consolidating Guarantor and Nonguarantor Financial Information

The following consolidating financial information presents the Statements of Comprehensive Income (Loss), Balance Sheets, and Statements of Cash Flows related to Boise Cascade. The Senior Notes are guaranteed fully and unconditionally and jointly and severally by each of our existing and future subsidiaries (other than our foreign subsidiaries). Each of our existing subsidiaries that is a guarantor of the Senior Notes is 100% owned by Boise Cascade. Other than the consolidated financial statements and footnotes for Boise Cascade and the consolidating financial information, financial statements and other disclosures concerning the guarantors have not been presented because management believes that such information is not material to investors.

Furthermore, the cancellation provisions in the related indenture regarding guarantor subsidiaries are customary, and they do not include an arrangement that permits a guarantor subsidiary to opt out of the obligation prior to or during the term of the debt. Each guarantor subsidiary is automatically released from its obligations as a guarantor upon the sale of the subsidiary or substantially all of its assets to a third party, the designation of the subsidiary as an unrestricted subsidiary for purposes of the covenants included in the indenture, the release of the indebtedness under the indenture, or if the issuer exercises its legal defeasance option or the discharge of its obligations in accordance with the indenture governing the Senior Notes.

Boise Cascade Company and Subsidiaries

Consolidating Statements of Comprehensive Income

For the Three Months Ended June 30, 2015

(unaudited)



	Boise Cascade Company (Parent)			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated
	(thousands)
Sales
Trade	$	—		$	951,728		$	3,669		$	—		$	955,397
Intercompany	—			—			5,853			(5,853		)	—
	—			951,728			9,522			(5,853		)	955,397

Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	405			822,032			8,050			(5,904		)	824,583
Depreciation and amortization	64			12,926			291			—			13,281
Selling and distribution expenses	314			67,493			447			—			68,254
General and administrative expenses	5,143			6,824			—			51			12,018
Other (income) expense, net	(22		)	(4		)	(72		)	—			(98		)
	5,904			909,271			8,716			(5,853		)	918,038

Income (loss) from operations	(5,904		)	42,457			806			—			37,359

Foreign currency exchange gain (loss)	(83		)	44			80			—			41
Interest expense	(5,578		)	(13		)	—			—			(5,591		)
Interest income	21			37			—			—			58
	(5,640		)	68			80			—			(5,492		)

Income (loss) before income taxes and equity in net income of affiliates	(11,544		)	42,525			886			—			31,867
Income tax (provision) benefit	(11,663		)	26			—			—			(11,637		)

Income (loss) before equity in net income of affiliates	(23,207		)	42,551			886			—			20,230
Equity in net income of affiliates	43,437			—			—			(43,437		)	—
Net income	20,230			42,551			886			(43,437		)	20,230

Other comprehensive income, net of tax
Defined benefit pension plans
Actuarial gain	11,923			—			—			—			11,923
Amortization of actuarial loss	808			—			—			—			808
Other comprehensive income, net of tax	12,731			—			—			—			12,731
Comprehensive income	$	32,961		$	42,551		$	886		$	(43,437	)	$	32,961

Boise Cascade Company and Subsidiaries

Consolidating Statements of Comprehensive Income

For the Three Months Ended June 30, 2014

(unaudited)



	Boise Cascade Company (Parent)			Guarantor Subsidiaries		Non- guarantor Subsidiaries			Eliminations			Consolidated
	(thousands)
Sales
Trade	$	—		$	957,289	$	3,898		$	—		$	961,187
Intercompany	—			—		5,785			(5,785		)	—
	—			957,289		9,683			(5,785		)	961,187

Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	—			821,453		8,481			(6,402		)	823,532
Depreciation and amortization	43			12,137		302			—			12,482
Selling and distribution expenses	—			66,587		594			—			67,181
General and administrative expenses	4,657			6,651		—			617			11,925
Other (income) expense, net	(9		)	295		(123		)	—			163
	4,691			907,123		9,254			(5,785		)	915,283

Income (loss) from operations	(4,691		)	50,166		429			—			45,904

Foreign currency exchange gain	170			29		67			—			266
Interest expense	(5,519		)	—		—			—			(5,519		)
Interest income	3			50		—			—			53
	(5,346		)	79		67			—			(5,200		)

Income (loss) before income taxes and equity in net income of affiliates	(10,037		)	50,245		496			—			40,704
Income tax (provision) benefit	(14,311		)	25		—			—			(14,286		)

Income (loss) before equity in net income of affiliates	(24,348		)	50,270		496			—			26,418
Equity in net income of affiliates	50,766			—		—			(50,766		)	—
Net income	26,418			50,270		496			(50,766		)	26,418

Other comprehensive loss, net of tax
Defined benefit pension plans
Amortization of actuarial gain	(4		)	—		—			—			(4		)
Other comprehensive loss, net of tax	(4		)	—		—			—			(4		)
Comprehensive income	$	26,414		$	50,270	$	496		$	(50,766	)	$	26,414

Boise Cascade Company and Subsidiaries

Consolidating Statements of Comprehensive Income

For the Six Months Ended June 30, 2015

(unaudited)



	Boise Cascade Company (Parent)			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated
	(thousands)
Sales
Trade	$	—		$	1,759,455		$	5,845		$	—		$	1,765,300
Intercompany	—			—			9,892			(9,892		)	—
	—			1,759,455			15,737			(9,892		)	1,765,300

Costs and expenses
Materials, labor, and other operating expenses, (excluding depreciation)	1,255			1,524,885			13,699			(10,217		)	1,529,622
Depreciation and amortization	122			26,165			581			—			26,868
Selling and distribution expenses	869			128,256			1,009			—			130,134
General and administrative expenses	10,436			13,265			—			325			24,026
Other (income) expense, net	(247		)	153			(303		)	—			(397		)
	12,435			1,692,724			14,986			(9,892		)	1,710,253

Income (loss) from operations	(12,435		)	66,731			751			—			55,047

Foreign currency exchange gain (loss)	(255		)	177			12			—			(66		)
Interest expense	(11,059		)	(13		)	—			—			(11,072		)
Interest income	39			109			—			—			148
	(11,275		)	273			12			—			(10,990		)

Income (loss) before income taxes and equity in net income of affiliates	(23,710		)	67,004			763			—			44,057
Income tax (provision) benefit	(16,267		)	57			—			—			(16,210		)

Income (loss) before equity in net income of affiliates	(39,977		)	67,061			763			—			27,847
Equity in net income of affiliates	67,824			—			—			(67,824		)	—
Net income	27,847			67,061			763			(67,824		)	27,847

Other comprehensive income, net of tax
Defined benefit pension plans
Actuarial gain	11,923			—			—			—			11,923
Amortization of actuarial loss	1,793			—			—			—			1,793
Effect of settlements	309			—			—			—			309
Other comprehensive income, net of tax	14,025			—			—			—			14,025
Comprehensive income	$	41,872		$	67,061		$	763		$	(67,824	)	$	41,872

Boise Cascade Company and Subsidiaries

Consolidating Statements of Comprehensive Income

For the Six Months Ended June 30, 2014

(unaudited)



	Boise Cascade Company (Parent)			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated
	(thousands)
Sales
Trade	$	—		$	1,721,359		$	7,008		$	—		$	1,728,367
Intercompany	—			—			8,350			(8,350		)	—
	—			1,721,359			15,358			(8,350		)	1,728,367

Costs and expenses
Materials, labor, and other operating expenses, (excluding depreciation)	—			1,491,203			13,879			(8,942		)	1,496,140
Depreciation and amortization	77			24,116			609			—			24,802
Selling and distribution expenses	—			124,862			1,249			—			126,111
General and administrative expenses	8,932			13,066			—			592			22,590
Other (income) expense, net	—			(1,335		)	(402		)	—			(1,737		)
	9,009			1,651,912			15,335			(8,350		)	1,667,906

Income (loss) from operations	(9,009		)	69,447			23			—			60,461

Foreign currency exchange gain	108			38			31			—			177
Interest expense	(11,031		)	—			—			—			(11,031		)
Interest income	8			115			—			—			123
	(10,915		)	153			31			—			(10,731		)

Income (loss) before income taxes and equity in net income of affiliates	(19,924		)	69,600			54			—			49,730
Income tax (provision) benefit	(17,790		)	43			—			—			(17,747		)

Income (loss) before equity in net income of affiliates	(37,714		)	69,643			54			—			31,983
Equity in net income of affiliates	69,697			—			—			(69,697		)	—
Net income	31,983			69,643			54			(69,697		)	31,983

Other comprehensive loss, net of tax
Defined benefit pension plans
Amortization of actuarial gain	(8		)	—			—			—			(8		)
Other comprehensive loss, net of tax	(8		)	—			—			—			(8		)
Comprehensive income	$	31,975		$	69,643		$	54		$	(69,697	)	$	31,975

Boise Cascade Company and Subsidiaries Consolidating Balance Sheets at June 30, 2015 (unaudited)

	Boise Cascade Company (Parent)		Guarantor Subsidiaries		Non- guarantor Subsidiaries		Eliminations			Consolidated
	(thousands)
ASSETS
Current
Cash and cash equivalents	$	194,903	$	21	$	3	$	—		$	194,927
Receivables
Trade, less allowances	1		235,877		637		—			236,515
Related parties	—		487		—		—			487
Other	314		4,464		551		—			5,329
Inventories	—		408,252		6,862		—			415,114
Deferred income taxes	19,286		—		6		—			19,292
Prepaid expenses and other	6,124		4,039		26		—			10,189
Total current assets	220,628		653,140		8,085		—			881,853

Property and equipment, net	1,926		365,596		6,491		—			374,013
Timber deposits	—		12,568		—		—			12,568
Deferred financing costs	7,199		—		—		—			7,199
Goodwill	—		21,823		—		—			21,823
Intangible assets, net	—		10,137		—		—			10,137
Other assets	591		10,244		16		—			10,851
Investments in affiliates	775,698		—		—		(775,698		)	—
Total assets	$	1,006,042	$	1,073,508	$	14,592	$	(775,698	)	$	1,318,444

Boise Cascade Company and Subsidiaries Consolidating Balance Sheets at June 30, 2015 (continued) (unaudited)

	Boise Cascade Company (Parent)			Guarantor Subsidiaries		Non- guarantor Subsidiaries		Eliminations			Consolidated
	(thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable
Trade	$	5,693		$	231,620	$	999	$	—		$	238,312
Related parties	—			3,445		—		—			3,445
Accrued liabilities	—			—		—		—
Compensation and benefits	16,066			31,666		306		—			48,038
Interest payable	3,375			—		—		—			3,375
Other	2,449			35,956		1,168		—			39,573
Total current liabilities	27,583			302,687		2,473		—			332,743

Debt
Long-term debt	351,312			—		—		—			351,312

Other
Compensation and benefits	84,783			—		—		—			84,783
Other long-term liabilities	11,763			7,242		—		—			19,005
	96,546			7,242		—		—			103,788

Commitments and contingent liabilities

Stockholders' equity
Preferred stock	—			—		—		—			—
Common stock	434			—		—		—			434
Treasury stock	(106,109		)	—		—		—			(106,109		)
Additional paid-in capital	505,188			—		—		—			505,188
Accumulated other comprehensive loss	(87,473		)	—		—		—			(87,473		)
Retained earnings	218,561			—		—		—			218,561
Subsidiary equity	—			763,579		12,119		(775,698		)	—
Total stockholders' equity	530,601			763,579		12,119		(775,698		)	530,601
Total liabilities and stockholders' equity	$	1,006,042		$	1,073,508	$	14,592	$	(775,698	)	$	1,318,444

Boise Cascade Company and Subsidiaries Consolidating Balance Sheets at December 31, 2014

	Boise Cascade Company (Parent)		Guarantor Subsidiaries		Non- guarantor Subsidiaries		Eliminations			Consolidated
	(thousands)
ASSETS
Current
Cash and cash equivalents	$	163,512	$	23	$	14	$	—		$	163,549
Receivables
Trade, less allowances	237		171,613		464		—			172,314
Related parties	—		821		—		—			821
Other	171		6,908		232		—			7,311
Inventories	—		389,259		5,202		—			394,461
Deferred income taxes	20,305		—		6		—			20,311
Prepaid expenses and other	10,756		4,064		37		—			14,857
Total current assets	194,981		572,688		5,955		—			773,624

Property and equipment, net	1,601		359,474		7,053		—			368,128
Timber deposits	—		13,819		—		—			13,819
Deferred financing costs	7,149		—		—		—			7,149
Goodwill	—		21,823		—		—			21,823
Intangible assets, net	—		10,183		—		—			10,183
Deferred income taxes	16,684		—		—		—			16,684
Other assets	20		9,055		—		—			9,075
Investments in affiliates	771,026		—		—		(771,026		)	—
Total assets	$	991,461	$	987,042	$	13,008	$	(771,026	)	$	1,220,485

Boise Cascade Company and Subsidiaries Consolidating Balance Sheets at December 31, 2014 (continued)

	Boise Cascade Company (Parent)			Guarantor Subsidiaries		Non- guarantor Subsidiaries		Eliminations			Consolidated
	(thousands)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable
Trade	$	7,238		$	143,141	$	314	$	—		$	150,693
Related parties	—			1,743		—		—			1,743
Accrued liabilities
Compensation and benefits	18,793			46,867		510		—			66,170
Interest payable	3,298			—		—		—			3,298
Other	1,559			30,163		1,564		—			33,286
Total current liabilities	30,888			221,914		2,388		—			255,190

Debt
Long-term debt	301,415			—		—		—			301,415

Other
Compensation and benefits	156,218			—		—		—			156,218
Other long-term liabilities	10,552			4,722		—		—			15,274
	166,770			4,722		—		—			171,492

Commitments and contingent liabilities

Stockholders' equity
Preferred stock	—			—		—		—			—
Common stock	433			—		—		—			433
Treasury stock	(100,000		)	—		—		—			(100,000		)
Additional paid-in capital	502,739			—		—		—			502,739
Accumulated other comprehensive loss	(101,498		)	—		—		—			(101,498		)
Retained earnings	190,714			—		—		—			190,714
Subsidiary equity	—			760,406		10,620		(771,026		)	—
Total stockholders' equity	492,388			760,406		10,620		(771,026		)	492,388
Total liabilities and stockholders' equity	$	991,461		$	987,042	$	13,008	$	(771,026	)	$	1,220,485

Boise Cascade Company and Subsidiaries Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2015 (unaudited)

	Boise Cascade Company (Parent)			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated
	(thousands)
Cash provided by (used for) operations
Net income	$	27,847		$	67,061		$	763		$	(67,824	)	$	27,847
Items in net income (loss) not using (providing) cash
Equity in net income of affiliates	(67,824		)	—			—			67,824			—
Depreciation and amortization, including deferred financing costs and other	892			26,165			581			—			27,638
Stock-based compensation	2,898			—			—			—			2,898
Pension expense	2,881			—			—			—			2,881
Deferred income taxes	7,187			—			—			—			7,187
Other	(474		)	(148		)	—			—			(622		)
Decrease (increase) in working capital
Receivables	93			(61,486		)	(492		)	—			(61,885		)
Inventories	—			(18,993		)	(1,660		)	—			(20,653		)
Prepaid expenses and other	(3,411		)	25			11			—			(3,375		)
Accounts payable and accrued liabilities	(2,927		)	81,298			86			—			78,457
Pension contributions	(53,203		)	—			—			—			(53,203		)
Income taxes payable	14,500			—			(1		)	—			14,499
Other	(2,095		)	157			(16		)	—			(1,954		)
Net cash provided by (used for) operations	(73,636		)	94,079			(728		)	—			19,715
Cash provided by (used for) investment
Expenditures for property and equipment	(958		)	(30,466		)	(9		)	—			(31,433		)
Proceeds from sales of assets	—			273			(10		)	—			263
Net cash used for investment	(958		)	(30,193		)	(19		)	—			(31,170		)
Cash provided by (used for) financing
Borrowings of long-term debt, including revolving credit facility	50,000			—			—			—			50,000
Treasury stock purchased	(6,109		)	—			—			—			(6,109		)
Financing costs	(655		)	—			—			—			(655		)
Other	(403		)	—			—			—			(403		)
Due to (from) affiliates	63,152			(63,888		)	736			—			—
Net cash provided by (used for) financing	105,985			(63,888		)	736			—			42,833
Net increase (decrease) in cash and cash equivalents	31,391			(2		)	(11		)	—			31,378
Balance at beginning of the period	163,512			23			14			—			163,549
Balance at end of the period	$	194,903		$	21		$	3		$	—		$	194,927

Boise Cascade Company and Subsidiaries Consolidating Statements of Cash Flows For the Six Months Ended June 30, 2014 (unaudited)

	Boise Cascade Company (Parent)			Guarantor Subsidiaries			Non- guarantor Subsidiaries			Eliminations			Consolidated
	(thousands)
Cash provided by (used for) operations
Net income	$	31,983		$	69,643		$	54		$	(69,697	)	$	31,983
Items in net income not using (providing) cash
Equity in net income of affiliates	(69,697		)	—			—			69,697			—
Depreciation and amortization, including deferred financing costs and other	892			24,116			608			—			25,616
Stock-based compensation	2,310			—			—			—			2,310
Pension expense	357			—			—			—			357
Deferred income taxes	2,721			—			—			—			2,721
Other	—			(1,729		)	—			—			(1,729		)
Decrease (increase) in working capital
Receivables	(144		)	(65,162		)	(647		)	—			(65,953		)
Inventories	(101		)	(26,573		)	(532		)	—			(27,206		)
Prepaid expenses and other	(468		)	(2,887		)	(69		)	—			(3,424		)
Accounts payable and accrued liabilities	(1,730		)	60,124			(1		)	—			58,393
Pension contributions	(780		)	—			—			—			(780		)
Income taxes payable	11,003			—			(10		)	—			10,993
Other	(2,907		)	(1,049		)	—			—			(3,956		)
Net cash provided by (used for) operations	(26,561		)	56,483			(597		)	—			29,325
Cash provided by (used for) investment
Expenditures for property and equipment	(327		)	(21,535		)	(109		)	—			(21,971		)
Proceeds from sales of assets	—			4,677			(8		)	—			4,669
Net cash used for investment	(327		)	(16,858		)	(117		)	—			(17,302		)
Cash provided by (used for) financing
Borrowings on revolving credit facility	57,600			—			—			—			57,600
Payments on revolving credit facility	(57,600		)	—			—			—			(57,600		)
Financing costs	(11		)	—			—			—			(11		)
Other	(342		)	—			—			—			(342		)
Due to (from) affiliates	38,926			(39,627		)	701			—			—
Net cash provided by (used for) financing	38,573			(39,627		)	701			—			(353		)
Net increase (decrease) in cash and cash equivalents	11,685			(2		)	(13		)	—			11,670
Balance at beginning of the period	118,198			25			26			—			118,249
Balance at end of the period	$	129,883		$	23		$	13		$	—		$	129,919