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Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2015
Segment Reporting [Abstract] |
Segment Information | Segment Information We operate our business using three reportable segments: Wood Products, Building Materials Distribution, and Corporate and Other. There are no differences in our basis of measurement of segment profit or loss from those disclosed in Note 15, Segment Information, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2014 Form 10-K, except as discussed below. An analysis of our operations by segment is as follows:
|  |  |  |  |  |  |  | Income |  |  |  |
|  |  |  |  |  |  |  | (Loss) |  |  |  |
|  |  |  |  |  |  |  | Before |  |  |  |
|  | Sales |  | Income |  | Depreciation |  |
|  |  |  | Inter- |  |  |  | Taxes |  | and |  | EBITDA
|  | Trade |  | segment |  | Total |  | (b) |  | Amortization |  | (a) (b)
|  | (millions)
Three Months Ended September 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wood Products |  | $ | 192.6 |  |  | $ | 148.0 |  |  | $ | 340.6 |  |  | $ | 21.9 |  |  | $ | 11.0 |  |  | $ | 32.9 |
Building Materials Distribution |  | 799.0 |  |  | — |  |  | 799.0 |  |  | 22.7 |  |  | 3.1 |  |  | 25.8 |
Corporate and Other |  | — |  |  | — |  |  | — |  |  | (4.3 | ) |  | 0.1 |  |  | (4.2 | )
Intersegment eliminations |  | — |  |  | (148.0 | ) |  | (148.0 | ) |  | — |  |  | — |  |  | — |
|  | $ | 991.6 |  |  | $ | — |  |  | $ | 991.6 |  |  | 40.3 |  |  | $ | 14.2 |  |  | $ | 54.5 |
Interest expense |  |  |  |  |  |  |  | (5.7 | ) |  |  |  |  |
Interest income |  |  |  |  |  |  |  | 0.1 |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  | $ | 34.6 |  |  |  |  |  |
|  |  |  |  |  |  |  | Income |  |  |  |
|  |  |  |  |  |  |  | (Loss) |  |  |  |
|  |  |  |  |  |  |  | Before |  |  |  |
|  | Sales |  | Income |  | Depreciation |  |
|  |  |  | Inter- |  |  |  | Taxes |  | and |  | EBITDA
|  | Trade |  | segment |  | Total |  | (b) |  | Amortization |  | (a) (b)
|  | (millions)
Three Months Ended September 30, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wood Products |  | $ | 210.0 |  |  | $ | 145.8 |  |  | $ | 355.7 |  |  | $ | 40.6 |  |  | $ | 10.7 |  |  | $ | 51.3 |
Building Materials Distribution |  | 773.4 |  |  | — |  |  | 773.4 |  |  | 21.1 |  |  | 2.4 |  |  | 23.5 |
Corporate and Other |  | — |  |  | — |  |  | — |  |  | (5.8 | ) |  | — |  |  | (5.8 | )
Intersegment eliminations |  | — |  |  | (145.8 | ) |  | (145.8 | ) |  | — |  |  | — |  |  | — |
|  | $ | 983.3 |  |  | $ | — |  |  | $ | 983.3 |  |  | 55.9 |  |  | $ | 13.2 |  |  | $ | 69.1 |
Interest expense |  |  |  |  |  |  |  | (5.5 | ) |  |  |  |
Interest income |  |  |  |  |  |  |  | 0.1 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | $ | 50.4 |  |  |  |  |  |
|  |  |  |  |  |  |  | Income |  |  |  |
|  |  |  |  |  |  |  | (Loss) |  |  |  |
|  |  |  |  |  |  |  | Before |  |  |  |
|  | Sales |  | Income |  | Depreciation |  |
|  |  |  | Inter- |  |  |  | Taxes |  | and |  | EBITDA
|  | Trade |  | segment |  | Total |  | (b) |  | Amortization |  | (a) (b)
|  | (millions)
Nine Months Ended September 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wood Products |  | $ | 573.1 |  |  | $ | 416.7 |  |  | $ | 989.8 |  |  | $ | 66.5 |  |  | $ | 32.2 |  |  | $ | 98.7 |
Building Materials Distribution |  | 2,183.8 |  |  | 0.2 |  |  | 2,184.0 |  |  | 45.6 |  |  | 8.7 |  |  | 54.3 |
Corporate and Other |  | — |  |  | — |  |  | — |  |  | (16.8 | ) |  | 0.2 |  |  | (16.6 | )
Intersegment eliminations |  | — |  |  | (416.9 | ) |  | (416.9 | ) |  | — |  |  | — |  |  | — |
|  | $ | 2,756.9 |  |  | $ | — |  |  | $ | 2,756.9 |  |  | 95.3 |  |  | $ | 41.1 |  |  | $ | 136.4 |
Interest expense |  |  |  |  |  |  |  | (16.8 | ) |  |  |  |
Interest income |  |  |  |  |  |  |  | 0.2 |  |  |  |  |
|  |  |  |  |  |  |  | $ | 78.7 |  |  |  |  |
|  |  |  |  |  |  |  | Income |  |  |  |
|  |  |  |  |  |  |  | (Loss) |  |  |  |
|  |  |  |  |  |  |  | Before |  |  |  |
|  | Sales |  | Income |  | Depreciation |  |
|  |  |  | Inter- |  |  |  | Taxes |  | and |  | EBITDA
|  | Trade |  | segment |  | Total |  | (b) |  | Amortization |  | (a) (b)
|  | (millions)
Nine Months Ended September 30, 2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Wood Products |  | $ | 594.5 |  |  | $ | 405.5 |  |  | $ | 1,000.0 |  |  | $ | 84.9 |  |  | $ | 30.7 |  |  | $ | 115.6 |
Building Materials Distribution |  | 2,117.2 |  |  | 0.1 |  |  | 2,117.3 |  |  | 46.3 |  |  | 7.1 |  |  | 53.5 |
Corporate and Other |  | — |  |  | — |  |  | — |  |  | (14.7 | ) |  | 0.1 |  |  | (14.6 | )
Intersegment eliminations |  | — |  |  | (405.6 | ) |  | (405.6 | ) |  | — |  |  | — |  |  | — |
|  | $ | 2,711.7 |  |  | $ | — |  |  | $ | 2,711.7 |  |  | 116.5 |  |  | $ | 38.0 |  |  | $ | 154.5 |
Interest expense |  |  |  |  |  |  |  | (16.5 | ) |  |  |  |
Interest income |  |  |  |  |  |  |  | 0.2 |  |  |  |  |
|  |  |  |  |  |  |  | $ | 100.1 |  |  |  |  |
__________________
(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 for the consolidated company:
| Three Months Ended September 30 |  | Nine Months Ended September 30
| 2015 |  | 2014 |  | 2015 |  | 2014
| (millions)
Net income | $ | 22.0 |  |  | $ | 32.3 |  |  | $ | 49.9 |  |  | $ | 64.3 |
Interest expense | 5.7 |  |  | 5.5 |  |  | 16.8 |  |  | 16.5 |
Interest income | (0.1 | ) |  | (0.1 | ) |  | (0.2 | ) |  | (0.2 | )
Income tax provision | 12.6 |  |  | 18.1 |  |  | 28.8 |  |  | 35.9 |
Depreciation and amortization | 14.2 |  |  | 13.2 |  |  | 41.1 |  |  | 38.0 |
EBITDA | $ | 54.5 |  |  | $ | 69.1 |  |  | $ | 136.4 |  |  | $ | 154.5 |
(b) | Prior to first quarter 2015, pension expense (which is primarily comprised of interest cost, expected return on plan assets, and amortization of actuarial losses) was recorded in each of our segments based on the associated individual employee roles and responsibilities. However, pension benefits are frozen for most employees and only a small number of hourly employees continue to accrue benefits. Therefore, management believes that recording pension expense in the Corporate and Other segment provides a clearer view of segment operating performance. In first quarter 2015, we made a change in our segment measurement method by recording all pension expense to the Corporate and Other segment. This change in measurement only impacts our segment disclosures, and thus it has no impact on our overall consolidated financial statements. Historical segment income (loss) and EBITDA have not been recast in the table above. For the three and nine months ended September 30, 2014, $0.1 million and $0.3 million, respectively, of pension expense was recorded in each of the Wood Products and Building Materials Distribution segments.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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