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Income Taxes | 12 Months Ended
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Dec. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes Income Tax Provision Income before income taxes includes the following components:
|  | Year Ended December 31
|  | 2015 |  | 2014 |  | 2013
|  | (thousands)
Domestic |  | $ | 79,414 |  |  | $ | 122,727 |  |  | $ | 82,529 |
Foreign |  | 1,268 |  |  | 578 |  |  | (4,381 | )
Income before income taxes |  | $ | 80,682 |  |  | $ | 123,305 |  |  | $ | 78,148 |
The income tax provision (benefit) shown in the Consolidated Statements of Operations includes the following:
|  | Year Ended December 31
|  | 2015 |  | 2014 |  | 2013
|  | (thousands)
Current income tax provision (benefit) |  |  |  |  |  |
Federal |  | $ | (2,938 | ) |  | $ | 27,568 |  |  | $ | 17,618 |
State |  | 555 |  |  | 5,023 |  |  | 3,172 |
Foreign |  | — |  |  | — |  |  | 22 |
Total current |  | (2,383 | ) |  | 32,591 |  |  | 20,812 |
Deferred income tax provision (benefit) |  |  |  |  |  |
Federal |  | 27,011 |  |  | 9,740 |  |  | (54,611 | )
State |  | 3,872 |  |  | 965 |  |  | (4,989 | )
Foreign |  | — |  |  | — |  |  | — |
Total deferred |  | 30,883 |  |  | 10,705 |  |  | (59,600 | )
Income tax provision (benefit) |  | $ | 28,500 |  |  | $ | 43,296 |  |  | $ | (38,788 | )
The effective tax rate varies from the U.S. Federal statutory income tax rate principally due to the following:
|  | Year Ended December 31 |
|  | 2015 |  | 2014 |  | 2013 |
|  | (thousands, except percentages)
Income before income taxes |  | $ | 80,682 |  |  | $ | 123,305 |  |  | $ | 78,148 |  |
Statutory U.S. income tax rate |  | 35.0 | % |  | 35.0 | % |  | 35.0 | % |
Statutory tax provision |  | $ | 28,239 |  |  | $ | 43,157 |  |  | $ | 27,352 |  |
State taxes |  | 3,006 |  |  | 4,097 |  |  | 2,545 |  |
Domestic production activities deduction |  | (299 | ) |  | (2,031 | ) |  | (1,326 | ) |
Other |  | (2,446 | ) |  | (1,927 | ) |  | 1,307 |  |
Total |  | $ | 28,500 |  |  | $ | 43,296 |  |  | $ | 29,878 |  |
Effective income tax rate excluding discrete item |  | 35.3 | % |  | 35.1 | % |  | 38.2 | % |
Recognition of beginning deferred tax balances |  | $ | — |  |  | $ | — |  |  | $ | (68,666 | ) | (a)
Income tax provision (benefit) with discrete item |  | $ | 28,500 |  |  | $ | 43,296 |  |  | $ | (38,788 | ) |
Effective income tax rate with discrete item |  | 35.3 | % |  | 35.1 | % |  | (49.6 | )% |
___________________________________
(a) | On February 4, 2013, we converted from a limited liability company to a corporation. In addition, we elected to be treated as a corporation for federal and state income tax purposes effective as of January 1, 2013. Therefore, we have been subject to federal and state income tax expense since January 1, 2013. For tax purposes, our conversion from a limited liability company to a corporation was deemed a nontaxable transfer of Boise Cascade, L.L.C., assets and liabilities to Boise Cascade Company. As a result of our conversion to a corporation in February 2013, we recorded net deferred tax assets of $68.7 million, the effect of which was recorded as an income tax benefit in our Consolidated Statement of Operations for the year ended December 31, 2013.
During the years ended December 31, 2015, 2014, and 2013, cash paid for taxes, net of refunds received, was $0.7 million, $40.3 million, and $22.7 million, respectively. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. The components of our net deferred tax assets and liabilities at December 31, 2015 and 2014, are summarized as follows:
|  | December 31, 2015 |  | December 31, 2014
|  | (thousands)
Deferred tax assets |  |  |  |
Employee benefits (a) |  | $ | 52,840 |  |  | $ | 81,414 |
Inventories |  | 6,618 |  |  | 6,733 |
Foreign net operating loss carryforward and foreign other (b) |  | 9,884 |  |  | 15,839 |
Other |  | 6,257 |  |  | 4,269 |
Gross deferred tax assets |  | 75,599 |  |  | 108,255 |
Valuation allowance (b) |  | (9,884 | ) |  | (15,839 | )
Net deferred tax assets |  | $ | 65,715 |  |  | $ | 92,416 |
Deferred tax liabilities |  |  |  |
Property and equipment |  | $ | 58,692 |  |  | $ | 50,199 |
Intangible assets and other |  | 5,264 |  |  | 4,531 |
Other |  | 851 |  |  | 691 |
Deferred tax liabilities |  | $ | 64,807 |  |  | $ | 55,421 |
Total deferred tax assets, net |  | $ | 908 |  |  | $ | 36,995 |
___________________________________
(a) | The decrease primarily relates to the tax effect of changes in recorded pension liabilities. See Note 7, Retirement and Benefit Plans, for more information.
(b) | We have an investment in foreign subsidiaries, which at December 31, 2015 and 2014, had $9.9 million and $15.8 million, respectively, of deferred tax assets. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion of the deferred tax assets will not be realized. The foreign deferred tax assets results primarily from net operating losses and were fully offset by a valuation allowance. The net operating losses will expire beginning in 2026 through 2033.
Income Tax Uncertainties The following table summarizes the changes related to our gross unrecognized tax benefits excluding interest and penalties:
|  | 2015 |  | 2014
|  | (thousands)
Balance as of January 1 |  | $ | 309 |  |  | $ | — |
Increases related to prior years' tax positions |  | 431 |  |  | 172 |
Increases related to current year tax positions |  | 145 |  |  | 137 |
Decreases related to prior years' tax positions |  | (7 | ) |  | — |
Balance as of December 31 |  | $ | 878 |  |  | $ | 309 |
As of December 31, 2015 and 2014, we had $0.9 million and $0.3 million, respectively, of unrecognized tax benefits recorded on our Consolidated Balance Sheets, excluding interest and penalties. Of the total unrecognized tax benefits recorded, $0.7 million and $0.3 million (net of the federal benefit for state taxes), respectively, would impact the effective tax rate if recognized. We had no unrecognized tax benefits recorded as of December 31, 2013. We recognize interest and penalties related to uncertain tax positions as income tax expense in our Consolidated Statements of Operations. For the years ended December 31, 2015, 2014, and 2013, we recognized an insignificant amount of interest and penalties related to taxes. We recognize tax liabilities and adjust these liabilities when our judgment changes as a result of the evaluation of new information not previously available or as new uncertainties occur. We do not expect the unrecognized tax benefits to change significantly over the next twelve months. We file federal income tax returns in the U.S. and Canada as well as various state and local income tax returns. Tax years 2012 to present remain open to examination in the U.S. and tax years 2011 to present remain open to examination in Canada and various states. As discussed above, prior to January 1, 2013, we were a limited liability company. Therefore, with limited exceptions, tax years prior to 2013 are the responsibility of the members of BC Holdings and not Boise Cascade.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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