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Segment Information | 12 Months Ended
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Dec. 31, 2018
Segment Reporting [Abstract] |
Segment Information | Segment Information As of January 1, 2017, we operate our business using two reportable segments: Wood Products and Building Materials Distribution. 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. For a description of the products sold by our segments, see Note 3, Revenues. Prior to January 1, 2017, we operated our business using three reportable segments: Wood Products, Building Materials Distribution, and Corporate and Other. This change is based on Corporate and Other no longer earning revenue as of January 1, 2017, and thus no longer meeting the definition of a reportable segment. Corporate results are now presented as reconciling items to arrive at total net sales and operating income. Corresponding information for the year ended December 31, 2016, has been revised to conform with current presentation. Unallocated corporate costs include corporate support staff services, related assets and liabilities, and pension plan activity. Support services include, but are not limited to, information technology, human resources, finance, accounting, and legal functions. Specified expenses are allocated to the segments. For many of these allocated expenses, the related assets and liabilities remain in corporate. The segments follow the accounting principles described in Note 2, Summary of Significant Accounting Policies. For the years ended December 31, 2018, 2017, and 2016, no customers accounted for 10% or more of total sales. Sales to foreign unaffiliated customers were approximately $96 million, $94 million, and $71 million, respectively, for the years ended December 31, 2018, 2017, and 2016. At December 31, 2018, 2017, and 2016, 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
|  | 2018 |  | 2017 |  | 2016
|  | (millions)
Wood Products (a) |  |  |  |  |  |
LVL |  | $ | 42.2 |  |  | $ | 45.5 |  |  | $ | 76.4 |
I-joists |  | 29.3 |  |  | 35.2 |  |  | 56.0 |
Other engineered wood products |  | 25.3 |  |  | 22.0 |  |  | 22.0 |
Plywood and veneer |  | 336.2 |  |  | 324.4 |  |  | 316.8 |
Lumber |  | 86.0 |  |  | 87.6 |  |  | 87.2 |
Byproducts (b) |  | 87.3 |  |  | 53.2 |  |  | 56.0 |
Particleboard |  | 37.5 |  |  | 46.0 |  |  | 49.3 |
Other |  | 63.9 |  |  | 44.4 |  |  | 19.9 |
|  | 707.7 |  |  | 658.3 |  |  | 683.6 |
Building Materials Distribution |  |  |  |  |  |
Commodity |  | 2,070.1 |  |  | 1,808.2 |  |  | 1,503.0 |
General line |  | 1,421.5 |  |  | 1,269.5 |  |  | 1,141.9 |
Engineered wood products |  | 796.0 |  |  | 696.0 |  |  | 582.3 |
|  | 4,287.6 |  |  | 3,773.7 |  |  | 3,227.2 |
|  | $ | 4,995.3 |  |  | $ | 4,432.0 |  |  | $ | 3,910.8 |
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(a) | Amounts represent sales to external customers. Sales are calculated after intersegment sales eliminations to our Building Materials Distribution segment, as well as the cost of EWP rebates and sales allowances provided at various stages of the supply chain (including distributors, retail lumberyards, and professional builders). For the year ended December 31, 2018, approximately 74% of Wood Products' EWP sales volumes were to our Building Materials Distribution segment.
(b) | As discussed in Note 3, Revenues, prior period amounts have not been adjusted under the modified retrospective method upon adoption of ASC Topic 606, Revenue from Contracts with Customers.
An analysis of our operations by segment is as follows:
| Year Ended December 31
| 2018 |  | 2017 |  | 2016
| (thousands)
Net sales by segment |  |  |  |  |
Wood Products | $ | 1,533,270 |  |  | $ | 1,373,760 |  |  | $ | 1,280,415 |
Building Materials Distribution | 4,287,702 |  |  | 3,773,810 |  |  | 3,227,207 |
Intersegment eliminations and other (a) | (825,682 | ) |  | (715,579 | ) |  | (596,407 | )
Total net sales | $ | 4,995,290 |  |  | $ | 4,431,991 |  |  | $ | 3,911,215 |
Segment operating income (loss) |  |  |  |  |
Wood Products | $ | (10,022 | ) |  | $ | 53,629 |  |  | $ | 25,929 |
Building Materials Distribution | 112,510 |  |  | 116,760 |  |  | 84,359 |
Total segment operating income | 102,488 |  |  | 170,389 |  |  | 110,288 |
Unallocated corporate costs | (30,450 | ) |  | (28,976 | ) |  | (25,597 | )
Income from operations | $ | 72,038 |  |  | $ | 141,413 |  |  | $ | 84,691 |
Depreciation and amortization |  |  |  |  |
Wood Products (b) | $ | 126,989 |  |  | $ | 63,115 |  |  | $ | 57,521 |
Building Materials Distribution | 18,280 |  |  | 15,504 |  |  | 13,762 |
Corporate | 1,568 |  |  | 1,760 |  |  | 1,564 |
Total depreciation and amortization | $ | 146,837 |  |  | $ | 80,379 |  |  | $ | 72,847 |
Capital expenditures |  |  |  |  |
Wood Products (c) | $ | 53,392 |  |  | $ | 54,600 |  |  | $ | 282,403 |
Building Materials Distribution (d) | 51,306 |  |  | 19,301 |  |  | 15,846 |
Corporate | 771 |  |  | 1,549 |  |  | 1,234 |
Total capital expenditures | $ | 105,469 |  |  | $ | 75,450 |  |  | $ | 299,483 |
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(a) | Primarily represents intersegment sales from our Wood Products segment to our Building Materials Distribution segment. During 2018, 2017, and 2016, approximately 54%, 52%, and 47%, respectively, of Wood Products' overall sales were to our Building Materials Distribution segment.
(b) | Depreciation and amortization for Wood Products includes $55.0 million of accelerated depreciation to fully depreciate the curtailed LVL production assets at our Roxboro, North Carolina facility during fourth quarter 2018. For more information, see Note 6, Curtailment of Manufacturing Facility.
(c) | Capital spending in 2016 for Wood Products includes $215.9 million for the acquisition of two EWP facilities.
(d) | Capital spending in 2018 for Building Materials Distribution includes $25.5 million for the acquisition of three wholesale building material distribution locations. For more information, see Note 8, Acquisitions.
| December 31
| 2018 |  | 2017
| (thousands)
Assets |  |  |
Wood Products | $ | 690,400 |  |  | $ | 783,533 |
Building Materials Distribution | 699,261 |  |  | 635,208 |
Corporate | 191,587 |  |  | 188,452 |
Total assets | $ | 1,581,248 |  |  | $ | 1,607,193 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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