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Segment Information
 12 Months Ended
Dec. 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. These segments represent distinct businesses that are managed separately because of differing products and services. Each of these businesses requires distinct operating and marketing strategies. Management reviews the performance of the company based on these segments.

Our Wood Products segment manufactures EWP, consisting of laminated veneer lumber (LVL), I-joists, and laminated beams, which are structural products used in applications where extra strength and consistent quality are required, such as headers and beams. LVL is also used in the manufacture of I-joists, which are assembled by combining a vertical web of oriented strand board (OSB) with top and bottom LVL or solid wood flanges. In addition, we manufacture structural, appearance, and industrial plywood panels. We also produce ponderosa pine lumber, studs, and particleboard. Our wood products are used primarily in new residential construction, residential repair-and-remodeling markets, and light commercial construction. The majority of our wood products are sold to leading wholesalers (including our Building Materials Distribution segment), home improvement centers, retail lumberyards, and industrial converters. During 2016, approximately 47% of Wood Products' overall sales were to our Building Materials Distribution segment.

Our Building Materials Distribution segment is a leading national stocking wholesale distributor of building materials. We distribute a broad line of building materials, including EWP, OSB, plywood, lumber, and general line items such as siding, metal products, insulation, roofing, and composite decking. Except for EWP, we purchase most of these building materials from third-party suppliers and market them primarily to retail lumberyards, home improvement centers, and specialty distributors that then sell the products to the final end customers, who are typically professional builders, independent contractors, and homeowners engaged in residential construction projects.

Our Corporate and Other segment includes corporate support staff services, related assets and liabilities, pension plan activity, and foreign currency exchange gains and losses. Support services include, but are not limited to, information technology, human resources, finance, accounting, and legal functions.

The segments' profits and losses are measured on operating profits and losses before interest expense and interest income. Specified expenses are allocated to the segments. For many of these allocated expenses, the related assets and liabilities remain in the Corporate and Other segment.

The segments follow the accounting principles described in Note 2, Summary of Significant Accounting Policies.

For the years ended December 31, 2016, 2015, and 2014, no customers accounted for 10% or more of total sales. Sales to foreign unaffiliated customers were approximately $71 million, $85 million, and $76 million, respectively, for the years ended December 31, 2016, 2015, and 2014.

At December 31, 2016, 2015, and 2014, and for the years then ended, long-lived assets located in foreign countries and net sales originating in foreign countries were not material.
    
Wood Products and Building Materials Distribution segment sales to external customers, including related parties, by product line are as follows:

 
 
Year Ended December 31
 
 
2016
 
2015
 
2014
 
 
(millions)
Wood Products
 
 
 
 
 
 
Engineered wood products
 
$
154.4

 
$
127.2

 
$
125.9

Plywood and veneer
 
316.8

 
385.5

 
413.6

Lumber
 
87.2

 
96.5

 
113.7

Byproducts
 
56.0

 
62.0

 
56.1

Particleboard
 
49.3

 
51.6

 
52.3

Other
 
19.9

 
19.5

 
25.7

 
 
683.6

 
742.3

 
787.2

 
 
 
 
 
 
 
Building Materials Distribution  
 
 
 
 
 
 
Commodity
 
1,503.0

 
1,343.4

 
1,376.1

General line
 
1,141.9

 
1,037.8

 
937.3

Engineered wood products
 
582.3

 
509.9

 
473.1

 
 
3,227.2

 
2,891.1

 
2,786.5

 
 
$
3,910.8

 
$
3,633.4

 
$
3,573.7


 
An analysis of our operations by segment is as follows:
 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
 
 
 
Sales
 
Before
 
Depreciation
 
Capital
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
Expenditures
 
 
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
(a)
 
Assets
 
 
(millions)
Year Ended December 31, 2016
 
 

 
 

 
 

 
 

 
 

 
 
 
 
Wood Products
 
$
683.6

 
$
596.8

 
$
1,280.4

 
$
25.9

 
$
57.5

 
$
282.4

 
$
781.7

Building Materials Distribution
 
3,227.2

 
—

 
3,227.2

 
84.4

 
13.8

 
15.8

 
548.1

Corporate and Other
 
0.4

 
—

 
0.4

 
(30.6
)
 
1.6

 
1.2

 
109.4

Intersegment eliminations
 
—

 
(596.8
)
 
(596.8
)
 
—

 
—

 
—

 
—

 
 
$
3,911.2

 
$
—

 
$
3,911.2

 
79.7

 
$
72.8

 
$
299.5

 
$
1,439.2

Interest expense
 
 
 
 
 
 
 
(26.7
)
 
 
 
 
 
 
Interest income
 
 
 
 
 
 
 
0.4

 
 
 
 
 
 
Change in fair value of interest rate swaps
 
 
 
 
 
 
 
4.2

 
 
 
 
 
 
Loss on extinguishment of debt
 
 
 
 
 
 
 
(14.3
)
 
 
 
 
 
 
 
 

 


 


 
$
43.3

 


 
 
 
 

 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
Capital
 
 
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
Expenditures
 
Assets
 
 
(millions)
Year Ended December 31, 2015
 
 

 
 

 
 

 
 

 
 

 
 
 
 
Wood Products
 
$
742.3

 
$
539.8

 
$
1,282.1

 
$
64.2

 
$
43.3

 
$
68.8

 
$
556.0

Building Materials Distribution
 
2,891.1

 
0.2

 
2,891.3

 
60.8

 
11.9

 
14.5

 
506.3

Corporate and Other
 
—

 
—

 
—

 
(22.1
)
 
0.4

 
4.3

 
186.3

Intersegment eliminations
 
—

 
(540.0
)
 
(540.0
)
 
—

 
—

 
—

 
—

 
 
$
3,633.4

 
$
—

 
$
3,633.4

 
102.9

 
$
55.6

 
$
87.5

 
$
1,248.6

Interest expense
 
 
 
 
 
 
 
(22.5
)
 
 
 
 
 
 
Interest income
 
 
 
 
 
 
 
0.3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
80.7

 


 
 
 
 


 
 
 
 
 
 
 
 
Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Loss)
 
 
 
 
 
 
 
 
Sales
 
Before
 
Depreciation
 
 
 
 
 
 
 
 
Inter-
 
 
 
Income
 
and
 
Capital
 
 
 
 
Trade
 
segment
 
Total
 
Taxes
 
Amortization
 
Expenditures
 
Assets
 
 
(millions)
Year Ended December 31, 2014
 
 

 
 

 
 

 
 

 
 

 
 
 
 
Wood Products
 
$
787.2

 
$
529.8

 
$
1,317.0

 
$
108.4

 
$
41.5

 
$
40.3

 
$
533.1

Building Materials Distribution
 
2,786.5

 
0.1

 
2,786.7

 
56.7

 
9.8

 
20.3

 
483.6

Corporate and Other
 
—

 
—

 
—

 
(19.9
)
 
0.2

 
0.6

 
196.7

Intersegment eliminations
 
—

 
(529.9
)
 
(529.9
)
 
—

 
—

 
—

 
—

 
 
$
3,573.7

 
$
—

 
$
3,573.7

 
145.1

 
$
51.4

 
$
61.2

 
$
1,213.3

Interest expense
 
 
 
 
 
 
 
(22.0
)
 
 
 
 
 
 
Interest income
 
 
 
 
 
 
 
0.2

 
 
 
 
 
 
 
 


 


 


 
$
123.3

 


 
 
 
 
___________________________________ 

(a)
Capital spending in 2016 for Wood Products includes $215.9 million for the acquisition of two EWP facilities.