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Segment Information
 3 Months Ended
Mar. 31, 2016
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 2015 Form 10-K.
 
An analysis of our operations by segment is as follows: 
 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
(a)
 
 
(millions)
Three Months Ended March 31, 2016
 
 

 
 

 
 

 
 

 
 

Wood Products
 
$
163.3

 
$
140.2

 
$
303.5

 
$
5.9

 
$
11.6

 
$
17.5

Building Materials Distribution
 
717.3

 
—

 
717.3

 
13.4

 
3.2

 
16.6

Corporate and Other
 
0.2

 
—

 
0.2

 
(5.7
)
 
0.4

 
(5.3
)
Intersegment eliminations
 
—

 
(140.2
)
 
(140.2
)
 
—

 
—

 
—

 
 
$
880.7

 
$
—

 
$
880.7

 
13.6

 
$
15.2

 
$
28.8

Interest expense
 
 
 
 
 
 
 
(5.8
)
 
 
 


Interest income
 
 
 
 
 
 
 
0.1

 
 
 


Change in fair value of interest rate swaps
 
 
 
 
 
 
 
(0.1
)
 
 
 
 
 
 

 


 


 
$
7.9

 


 
 

 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
EBITDA
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
(a)
 
 
(millions)
Three Months Ended March 31, 2015
 
 

 
 

 
 

 
 

 
 

Wood Products
 
$
187.0

 
$
122.3

 
$
309.3

 
$
20.9

 
$
10.8

 
$
31.7

Building Materials Distribution
 
622.9

 
—

 
622.9

 
3.3

 
2.7

 
6.1

Corporate and Other
 
—

 
—

 
—

 
(6.7
)
 
0.1

 
(6.6
)
Intersegment eliminations
 
—

 
(122.3
)
 
(122.3
)
 
—

 
—

 
—

 
 
$
809.9

 
$
—

 
$
809.9

 
17.6

 
$
13.6

 
$
31.2

Interest expense
 
 
 
 
 
 
 
(5.5
)
 
 
 
 
Interest income
 
 
 
 
 
 
 
0.1

 
 
 
 
 
 


 


 


 
$
12.2

 


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

__________________ 

(a)
EBITDA is defined as income (loss) before interest (interest expense, interest income, and change in fair value of interest rate swaps), 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
March 31
 
2016
 
2015
 
(millions)
Net income
$
5.0

 
$
7.6

Interest expense
5.8

 
5.5

Interest income
(0.1
)
 
(0.1
)
Change in fair value of interest rate swaps
0.1

 
—

Income tax provision
2.9

 
4.6

Depreciation and amortization
15.2

 
13.6

EBITDA
$
28.8

 
$
31.2