Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-35805 | |
Entity Registrant Name | Boise Cascade Company | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-1496201 | |
Entity Address, Address Line One | 1111 West Jefferson Street Suite 300 | |
Entity Address, City or Town | Boise | |
Entity Address, State or Province | ID | |
Entity Address, Postal Zip Code | 83702-5389 | |
City Area Code | 208 | |
Local Phone Number | 384-6161 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | BCC | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 39,330,807 | |
Entity Central Index Key | 0001328581 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Sales | ||
Sales | $ 1,821,316 | $ 1,170,534 |
Costs and expenses | ||
Materials, labor, and other operating expenses (excluding depreciation) | 1,450,434 | 992,270 |
Depreciation and amortization | 19,539 | 35,332 |
Selling and distribution expenses | 120,917 | 99,463 |
General and administrative expenses | 25,262 | 16,084 |
Loss on curtailment of facility | 0 | 1,669 |
Other (income) expense, net | (97) | 169 |
Total costs and expenses | 1,616,055 | 1,144,987 |
Income from operations | 205,261 | 25,547 |
Foreign currency exchange gain (loss) | 154 | (873) |
Pension expense (excluding service costs) | (19) | (387) |
Interest expense | (5,875) | (6,421) |
Interest income | 59 | 655 |
Change in fair value of interest rate swaps | 1,024 | (2,314) |
Total nonoperating income (expense) | (4,657) | (9,340) |
Income before income taxes | 200,604 | 16,207 |
Income tax provision | (51,448) | (4,007) |
Net income | $ 149,156 | $ 12,200 |
Weighted average common shares outstanding: | ||
Basic (in shares) | 39,355 | 39,163 |
Diluted (in shares) | 39,630 | 39,405 |
Net income per common share: | ||
Basic (in dollars per share) | $ 3.79 | $ 0.31 |
Diluted (in dollars per share) | 3.76 | 0.31 |
Dividends declared per common share | $ 0.10 | $ 0.10 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 149,156 | $ 12,200 |
Defined benefit pension plans | ||
Amortization of actuarial (gain) loss, net of tax | (4) | 151 |
Effects of Settlements, net of tax | 0 | 64 |
Other comprehensive income (loss), net of tax | (4) | 215 |
Comprehensive income | $ 149,152 | $ 12,415 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) Parentheticals - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Amortization of actuarial (gain) loss, tax | $ (1) | $ 51 |
Effect of settlements, tax effect | $ 0 | $ 22 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current | ||
Cash and cash equivalents | $ 456,982 | $ 405,382 |
Receivables | ||
Trade, less allowances | 540,197 | 375,865 |
Related parties | 416 | 201 |
Other | 12,261 | 15,067 |
Inventories | 611,700 | 503,480 |
Prepaid expenses and other | 11,304 | 8,860 |
Total current assets | 1,632,860 | 1,308,855 |
Property and equipment, net | 456,067 | 461,456 |
Operating lease right-of-use assets | 60,065 | 62,447 |
Finance lease right-of-use assets | 28,744 | 29,523 |
Timber deposits | 10,025 | 11,761 |
Goodwill | 60,382 | 60,382 |
Intangible assets, net | 16,268 | 16,574 |
Deferred income taxes | 7,329 | 7,460 |
Other assets | 6,997 | 7,260 |
Total assets | 2,278,737 | 1,965,718 |
Accounts payable | ||
Trade | 457,132 | 307,653 |
Related parties | 1,026 | 1,199 |
Accrued liabilities | ||
Compensation and benefits | 87,907 | 118,400 |
Income taxes payable | 60,677 | 8,101 |
Interest payable | 5,011 | 8,477 |
Other | 84,761 | 80,172 |
Total current liabilities | 696,514 | 524,002 |
Debt | ||
Long-term debt | 444,001 | 443,792 |
Other | ||
Compensation and benefits | 27,176 | 25,951 |
Operating lease liabilities, net of current portion | 53,437 | 56,001 |
Finance lease liabilities, net of current portion | 31,059 | 31,607 |
Deferred income taxes | 15,783 | 18,263 |
Other long-term liabilities | 15,506 | 15,303 |
Total other liabilities | 142,961 | 147,125 |
Commitments and contingent liabilities | ||
Stockholders' equity | ||
Preferred Stock, Value, Issued | $ 0 | $ 0 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock, Value, Issued | $ 447 | $ 446 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 44,698,000 | 44,568,000 |
Treasury Stock, Common, Value | $ (138,909) | $ (138,909) |
Treasury stock, at cost | 5,367,000 | 5,367,000 |
Additional paid-in capital | $ 537,431 | $ 538,006 |
Accumulated other comprehensive loss | (1,082) | (1,078) |
Retained earnings | 597,374 | 452,334 |
Total stockholders' equity | 995,261 | 850,799 |
Total liabilities and stockholders' equity | $ 2,278,737 | $ 1,965,718 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) Parenthetical - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowances | $ 1,840 | $ 1,111 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash provided by (used for) operations | ||
Net income | $ 149,156 | $ 12,200 |
Items in net income not using (providing) cash | ||
Depreciation and amortization, including deferred financing costs and other | 19,950 | 35,859 |
Stock-based compensation | 2,092 | 1,674 |
Pension expense | 19 | 555 |
Deferred income taxes | (2,244) | 1,197 |
Change in fair value of interest rate swaps | (1,024) | 2,314 |
Loss on curtailment of facility (excluding severance) | 0 | 1,438 |
Other | 4 | 155 |
Decrease (increase) in working capital | ||
Receivables | (161,833) | (108,229) |
Inventories | (108,220) | (39,045) |
Prepaid expenses and other | (2,444) | (3,205) |
Accounts payable and accrued liabilities | 125,064 | 55,629 |
Pension contributions | (78) | (726) |
Income taxes payable | 52,565 | (2,111) |
Other | (756) | (172) |
Net cash provided by (used for) operations | 72,251 | (42,467) |
Cash provided by (used for) investment | ||
Expenditures for property and equipment | (13,301) | (18,563) |
Proceeds from sales of assets and other | 136 | 103 |
Net cash used for investment | (13,165) | (18,460) |
Cash provided by (used for) financing | ||
Dividends paid on common stock | (4,440) | (4,645) |
Tax withholding payments on stock-based awards | (2,729) | (3,309) |
Other | (317) | (1,364) |
Net cash used for financing | (7,486) | (9,318) |
Net increase (decrease) in cash and cash equivalents | 51,600 | (70,245) |
Balance at beginning of the period | 405,382 | 285,237 |
Balance at end of the period | $ 456,982 | $ 214,992 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
Beginning balance, common stock, shares issued at Dec. 31, 2019 | 44,353 | |||||
Beginning balance, net of taxes at Dec. 31, 2019 | $ 701,330 | $ 444 | $ (138,909) | $ 533,345 | $ (50,248) | $ 356,698 |
Beginning balance, treasury stock, shares at Dec. 31, 2019 | 5,367 | |||||
Net income | 12,200 | 12,200 | ||||
Other comprehensive income (loss) | 215 | 215 | ||||
Common stock issued, shares | 211 | |||||
Common stock issued, value | 2 | $ 2 | ||||
Stock-based compensation | 1,674 | 1,674 | ||||
Common stock dividends | $ (3,866) | (3,866) | ||||
Dividends declared per common share | $ 0.10 | |||||
Tax withholding payments on stock-based awards | $ (3,309) | (3,309) | ||||
Proceeds from exercise of stock options | 27 | 27 | ||||
Other | (2) | (2) | ||||
Ending balance, common stock, shares issued at Mar. 31, 2020 | 44,564 | |||||
Ending balance, net of taxes at Mar. 31, 2020 | $ 708,271 | $ 446 | $ (138,909) | 531,735 | (50,033) | 365,032 |
Ending balance, treasury stock, shares at Mar. 31, 2020 | 5,367 | |||||
Beginning balance, common stock, shares issued at Dec. 31, 2020 | 44,568 | 44,568 | ||||
Beginning balance, net of taxes at Dec. 31, 2020 | $ 850,799 | $ 446 | $ (138,909) | 538,006 | (1,078) | 452,334 |
Beginning balance, treasury stock, shares at Dec. 31, 2020 | 5,367 | 5,367 | ||||
Net income | $ 149,156 | 149,156 | ||||
Other comprehensive income (loss) | (4) | (4) | ||||
Common stock issued, shares | 130 | |||||
Common stock issued, value | 1 | $ 1 | ||||
Stock-based compensation | 2,092 | 2,092 | ||||
Common stock dividends | $ (4,116) | (4,116) | ||||
Dividends declared per common share | $ 0.10 | |||||
Tax withholding payments on stock-based awards | $ (2,729) | (2,729) | ||||
Proceeds from exercise of stock options | 63 | 63 | ||||
Other | $ (1) | (1) | ||||
Ending balance, common stock, shares issued at Mar. 31, 2021 | 44,698 | 44,698 | ||||
Ending balance, net of taxes at Mar. 31, 2021 | $ 995,261 | $ 447 | $ (138,909) | $ 537,431 | $ (1,082) | $ 597,374 |
Ending balance, treasury stock, shares at Mar. 31, 2021 | 5,367 | 5,367 |
Nature of Operations and Consol
Nature of Operations and Consolidation (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Consolidation | Nature of Operations and Consolidation Nature of Operations Boise Cascade Company is a building products company headquartered in Boise, Idaho. As used in this Form 10-Q, the terms "Boise Cascade," "we," and "our" refer to Boise Cascade Company and its consolidated subsidiaries. We are one of the largest producers of engineered wood products (EWP) and plywood in North America and a leading United States (U.S.) wholesale distributor of building products. We operate our business using two reportable segments: (1) Wood Products, which primarily manufactures EWP and plywood, and (2) Building Materials Distribution (BMD), which is a wholesale distributor of building materials. For more information, see Note 12, Segment Information. Consolidation The accompanying quarterly consolidated financial statements have not been audited by an independent registered public accounting firm but, in the opinion of management, include all adjustments necessary to present fairly the financial position, results of operations, cash flows, and stockholders' equity for the interim periods presented. Except as disclosed within these condensed notes to unaudited quarterly consolidated financial statements, the adjustments made were of a normal, recurring nature. Certain information and footnote disclosures normally included in our annual consolidated financial statements have been condensed or omitted. The quarterly consolidated financial statements include the accounts of Boise Cascade and its subsidiaries after elimination of intercompany balances and transactions. Quarterly results are not necessarily indicative of results that may be expected for the full year. These condensed notes to unaudited quarterly consolidated financial statements should be read in conjunction with our 2020 Form 10-K and the other reports we file with the Securities and Exchange Commission (SEC). |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Accounting Policies The complete summary of significant accounting policies is included in Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2020 Form 10-K. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets, and other long-lived assets; legal contingencies; guarantee obligations; indemnifications; assumptions used in retirement, medical, and workers' compensation benefits; assumptions used in the determination of right-of-use assets and related lease liabilities; stock-based compensation; fair value measurements; income taxes; and vendor and customer rebates, among others. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For revenue disaggregated by major product line for each reportable segment, see Note 12, Segment Information. Fees for shipping and handling charged to customers for sales transactions are included in "Sales" in our Consolidated Statements of Operations. When control over products has transferred to the customer, we have elected to recognize costs related to shipping and handling as fulfillment costs. For our Wood Products segment, costs related to shipping and handling are included in "Materials, labor, and other operating expenses (excluding depreciation)" in our Consolidated Statements of Operations. In our Wood Products segment, we view our shipping and handling costs as a cost of the manufacturing process and the movement of product to our end customers. For our Building Materials Distribution segment, costs related to shipping and handling of $46.5 million and $40.7 million, for the three months ended March 31, 2021 and 2020, respectively, are included in "Selling and distribution expenses" in our Consolidated Statements of Operations. In our Building Materials Distribution segment, our activities relate to the purchase and resale of finished product, and excluding shipping and handling costs from “Materials, labor, and other operating expenses (excluding depreciation)” provides us a clearer view of our operating performance and the effectiveness of our sales and purchasing functions. Customer Rebates and Allowances Rebates are provided to our customers and our customers' customers based on the volume of their purchases, among other factors such as customer loyalty, conversion, and commitment. We provide the rebates to increase the sell-through of our products. Rebates are generally estimated based on the expected amount to be paid and recorded as a decrease in "Sales." At March 31, 2021, and December 31, 2020, we had $56.4 million and $56.3 million, respectively, of rebates payable to our customers recorded in "Accrued liabilities, Other" on our Consolidated Balance Sheets. We adjust our estimate of revenue at the earlier of when the probability of rebates paid changes or when the amounts become fixed. There have not been significant changes to our estimates of rebates, although it is reasonably possible that a change in the estimate may occur. Vendor Rebates and Allowances We receive rebates and allowances from our vendors under a number of different programs, including vendor marketing programs. At March 31, 2021, and December 31, 2020, we had $8.2 million and $9.9 million, respectively, of vendor rebates and allowances recorded in "Receivables, Other" on our Consolidated Balance Sheets. Rebates and allowances received from our vendors are recognized as a reduction of "Materials, labor, and other operating expenses (excluding depreciation)" when the product is sold, unless the rebates and allowances are linked to a specific incremental cost to sell a vendor's product. Amounts received from vendors that are linked to specific selling and distribution expenses are recognized as a reduction of "Selling and distribution expenses" in the period the expense is incurred. Leases We primarily lease land, building, and equipment under operating and finance leases. We determine if an arrangement is a lease at inception and assess lease classification as either operating or finance at lease inception or upon modification. Substantially all of our leases with initial terms greater than one year are for real estate, including distribution centers, corporate headquarters, land, and other office space. Substantially all of these lease agreements have fixed payment terms based on the passage of time and are recorded in our Building Materials Distribution segment. Many of our leases include fixed escalation clauses, renewal options and/or termination options that are factored into our determination of lease term and lease payments when appropriate. Renewal options generally range from one to ten years with fixed payment terms similar to those in the original lease agreements. Some lease agreements provide us with the option to purchase the leased property at market value. Our lease agreements do not contain any residual value guarantees. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease term. The current portion of our operating and finance lease liabilities are recorded in "Accrued liabilities, Other" on our Consolidated Balance Sheets. We use our estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. In determining our incremental borrowing rates, we give consideration to publicly available interest rates for instruments with similar characteristics, including credit rating, term, and collateralization. For purposes of determining straight-line rent expense, the lease term is calculated from the date we first take possession of the facility, including any periods of free rent and any renewal option periods we are reasonably certain of exercising. Variable lease expense generally includes reimbursement of actual costs for common area maintenance, property taxes, and insurance on leased real estate and are recorded as incurred. Most of our operating lease expense is recorded in "Selling and distribution expenses" in our Consolidated Statements of Operations. In addition, we do not separate lease and non-lease components for all of our leases. Our short-term leases primarily include equipment rentals with lease terms on a month-to-month basis, which provide for our seasonal needs and flexibility in the use of equipment. Our short-term leases also include certain real estate for which either party has the right to cancel upon providing notice of 30 to 90 days. We do not recognize ROU assets or lease liabilities for short-term leases. Inventories Inventories included the following (work in process is not material): March 31, December 31, (thousands) Finished goods and work in process $ 533,772 $ 431,663 Logs 40,872 35,622 Other raw materials and supplies 37,056 36,195 $ 611,700 $ 503,480 Property and Equipment Property and equipment consisted of the following asset classes: March 31, December 31, (thousands) Land $ 47,099 $ 47,099 Buildings 152,076 151,718 Improvements 64,310 64,178 Mobile equipment, information technology, and office furniture 178,102 178,271 Machinery and equipment 686,442 687,768 Construction in progress 48,917 40,606 1,176,946 1,169,640 Less accumulated depreciation (720,879) (708,184) $ 456,067 $ 461,456 Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy under GAAP gives the highest priority to quoted market prices (Level 1) and the lowest priority to unobservable inputs (Level 3). In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value (Level 1). If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, we use quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly (Level 2). If quoted prices for identical or similar assets are not available or are unobservable, we may use internally developed valuation models, whose inputs include bid prices, and third-party valuations utilizing underlying asset assumptions (Level 3). Financial Instruments Our financial instruments are cash and cash equivalents, accounts receivable, accounts payable, long-term debt, and interest rate swaps. Our cash is recorded at cost, which approximates fair value, and our cash equivalents are money market funds. As of March 31, 2021, and December 31, 2020, we held $399.0 million and $371.8 million, respectively, in money market funds that are measured at fair value on a recurring basis using Level 1 inputs. The recorded values of accounts receivable and accounts payable approximate fair values based on their short-term nature. At March 31, 2021, and December 31, 2020, the book value of our fixed-rate debt for each period was $400.0 million, and the fair value was estimated to be $418.5 million and $432.0 million, respectively. The difference between the book value and the fair value is derived from the difference between the period-end market interest rate and the stated rate of our fixed-rate, long-term debt. We estimated the fair value of our fixed-rate debt using quoted market prices of our debt in inactive markets (Level 2 inputs). The interest rate on our variable-rate debt is based on market conditions such as the London Interbank Offered Rate (LIBOR) or a base rate. Because the interest rate on the variable-rate debt is based on current market conditions, we believe that the estimated fair value of the outstanding balance on our variable-rate debt approximates book value. As discussed below, we also have interest rate swaps to mitigate our variable interest rate exposure, the fair value of which is measured based on Level 2 inputs. Interest Rate Risk and Interest Rate Swaps We are exposed to interest rate risk arising from fluctuations in variable-rate LIBOR on our term loan and when we have loan amounts outstanding on our Revolving Credit Facility. At March 31, 2021, we had $50.0 million of variable-rate debt outstanding based on one-month LIBOR. Our objective is to limit the variability of interest payments on our debt. To meet this objective, we enter into receive-variable, pay-fixed interest rate swaps to change the variable-rate cash flow exposure to fixed-rate cash flows. In accordance with our risk management strategy, we actively monitor our interest rate exposure and use derivative instruments from time to time to manage the related risk. We do not speculate using derivative instruments. At March 31, 2021, we had two interest rate swap agreements. Under the interest rate swaps, we receive one-month LIBOR-based variable interest rate payments and make fixed interest rate payments, thereby fixing the interest rate on $50.0 million of variable rate debt exposure. Payments on one interest rate swap, entered into in 2016, with a notional principal amount of $50.0 million are due on a monthly basis at an annual fixed rate of 1.007%, and this swap expires in February 2022 (Initial Swap). During second quarter 2020, we entered into another forward interest rate swap agreement which commences on the expiration date of the Initial Swap. Payments on this interest rate swap with a notional principal amount of $50.0 million will be due on a monthly basis at an annual fixed rate of 0.39%, and this swap expires in June 2025. The interest rate swap agreements were not designated as cash flow hedges, and as a result, all changes in the fair value are recognized in "Change in fair value of interest rate swaps" in our Consolidated Statements of Operations rather than through other comprehensive income. At March 31, 2021, we recorded a long-term asset of $0.9 million in "Other assets" on our Consolidated Balance Sheets, and we also recorded a long-term liability of $0.4 million in "Other long-term liabilities" on our Consolidated Balance Sheets, representing the fair value of the interest rate swap agreements. At December 31, 2020, we recorded a long-term liability of $0.6 million in "Other long-term liabilities" on our Consolidated Balance Sheets, representing the fair value of the interest rate swap agreements. The swaps were valued based on observable inputs for similar assets and liabilities and other observable inputs for interest rates and yield curves (Level 2 inputs). Concentration of Credit Risk We are exposed to credit risk related to customer accounts receivable. In order to manage credit risk, we consider customer concentrations and current economic trends and monitor the creditworthiness of significant customers based on ongoing credit evaluations. At March 31, 2021, receivables from two customers accounted for approximately 17% and 11% of total receivables. At December 31, 2020, receivables from these two customers accounted for approximately 12% and 13% of total receivables. No other customer accounted for 10% or more of total receivables. New and Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which refines the scope of Topic 848 and clarifies some of its guidance as it related to recent rate reform activities. Our current contracts that reference LIBOR include certain debt instruments and interest rate swaps. The amendments are effective for eligible contract modifications subsequent to March 12, 2020, and through December 31, 2022. The adoption of these standards did not and are not expected to have a material effect on our financial statements, but we will assess any eligible contract modifications in the future. There were no other accounting standards recently issued that had or are expected to have a material impact on our consolidated financial statements and associated disclosures. |
Income Taxes (Notes)
Income Taxes (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended March 31, 2021 and 2020, we recorded $51.4 million and $4.0 million, respectively, of income tax expense and had an effective rate of 25.6% and 24.7%, respectively. During the three months ended March 31, 2021, the primary reason for the difference between the federal statutory income tax rate of 21% and the effective tax rate was the effect of state taxes. During the three months ended March 31, 2020, the primary reason for the difference between the federal statutory income tax rate of 21% and the effective tax rate was the effect of state taxes, offset by excess tax benefits of vested share-based payment awards and accounting for the tax impact of the CARES Act. During the three months ended March 31, 2021 and 2020, cash paid for taxes, net of refunds received, were $1.0 million and $5.3 million, respectively. |
Net Income Per Common Share (No
Net Income Per Common Share (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Weighted average common shares outstanding for the basic net income per common share calculation includes certain vested restricted stock units (RSUs) and performance stock units (PSUs) as there are no conditions under which those shares will not be issued. Diluted net income per common share is computed by dividing net income by the combination of the weighted average number of common shares outstanding during the period and other potentially dilutive weighted average common shares. Other potentially dilutive weighted average common shares include the dilutive effect of stock options, RSUs, and PSUs for each period using the treasury stock method. Under the treasury stock method, the exercise price of a share and the amount of compensation expense, if any, for future service that has not yet been recognized are assumed to be used to repurchase shares in the current period. The following table sets forth the computation of basic and diluted net income per common share: Three Months Ended 2021 2020 (thousands, except per-share data) Net income $ 149,156 $ 12,200 Weighted average common shares outstanding during the period (for basic calculation) 39,355 39,163 Dilutive effect of other potential common shares 275 242 Weighted average common shares and potential common shares (for diluted calculation) 39,630 39,405 Net income per common share - Basic $ 3.79 $ 0.31 Net income per common share - Diluted $ 3.76 $ 0.31 |
Curtailment of Manufacturing Fa
Curtailment of Manufacturing Facility (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Impairment, and Other Activities Disclosure [Text Block] | Curtailment of Manufacturing Facility On February 20, 2020, we decided to permanently curtail I-joist production at our Roxboro, North Carolina facility by March 31, 2020. As a result of the curtailment, we recorded $15.0 million of accelerated depreciation during first quarter 2020 to fully depreciate the curtailed I-joist assets. In addition, we recorded $1.7 million of various closure-related costs in "Loss on curtailment of facility" in our Consolidated Statements of Operations. |
Debt (Notes)
Debt (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Long-term debt consisted of the following: March 31, December 31, (thousands) Asset-based revolving credit facility due 2025 $ — $ — Asset-based credit facility term loan due 2025 50,000 50,000 4.875% senior notes due 2030 400,000 400,000 Deferred financing costs (5,999) (6,208) Long-term debt $ 444,001 $ 443,792 Asset-Based Credit Facility On May 15, 2015, Boise Cascade and its principal operating subsidiaries, Boise Cascade Wood Products, L.L.C., and Boise Cascade Building Materials Distribution, L.L.C., as borrowers, and Boise Cascade Wood Products Holdings Corp., as guarantor, entered into an Amended and Restated Credit Agreement, as amended, (Amended Agreement) with Wells Fargo Capital Finance, LLC, as administrative agent, and the banks named therein as lenders. The Amended Agreement includes a $350 million senior secured asset-based revolving credit facility (Revolving Credit Facility) and a $50.0 million term loan (ABL Term Loan) maturing on March 13, 2025. Interest on borrowings under our Revolving Credit Facility and ABL Term Loan are payable monthly. Borrowings under the Amended Agreement are constrained by a borrowing base formula dependent upon levels of eligible receivables and inventory reduced by outstanding borrowings and letters of credit (Availability). The Amended Agreement is secured by a first-priority security interest in substantially all of our assets, except for property and equipment. The proceeds of borrowings under the agreement are available for working capital and other general corporate purposes. The Amended Agreement contains customary nonfinancial covenants, including a negative pledge covenant and restrictions on new indebtedness, investments, distributions to equity holders, asset sales, and affiliate transactions, the scope of which are dependent on the Availability existing from time to time. The Amended Agreement also contains a requirement that we meet a 1:1 fixed-charge coverage ratio (FCCR), applicable only if Availability falls below 10% of the aggregate revolving lending commitments (or $35 million). Availability exceeded the minimum threshold amounts required for testing of the FCCR at all times since entering into the Amended Agreement, and Availability at March 31, 2021, was $345.3 million. The Amended Agreement permits us to pay dividends only if at the time of payment (i) no default has occurred or is continuing (or would result from such payment) under the Amended Agreement, and (ii) pro forma Excess Availability (as defined in the Amended Agreement) is equal to or exceeds 25% of the aggregate Revolver Commitments (as defined in the Amended Agreement) or (iii) (x) pro forma Excess Availability is equal to or exceeds 15% of the aggregate Revolver Commitment and (y) our fixed-charge coverage ratio is greater than or equal to 1:1 on a pro forma basis. Revolving Credit Facility Interest rates under the Revolving Credit Facility are based, at our election, on either LIBOR or a base rate, as defined in the Amended Agreement, plus a spread over the index elected that ranges from 1.25% to 1.50% for loans based on LIBOR and from 0.25% to 0.50% for loans based on the base rate. The spread is determined on the basis of a pricing grid that results in a higher spread as average quarterly Availability declines. Letters of credit are subject to a fronting fee payable to the issuing bank and a fee payable to the lenders equal to the LIBOR margin rate. In addition, we are required to pay an unused commitment fee at a rate of 0.25% per annum of the average unused portion of the lending commitments. At both March 31, 2021, and December 31, 2020, we had no borrowings outstanding under the Revolving Credit Facility and $4.7 million and $4.8 million, respectively, of letters of credit outstanding. These letters of credit and borrowings, if any, reduce Availability under the Revolving Credit Facility by an equivalent amount. ABL Term Loan The ABL Term Loan was provided by institutions within the Farm Credit system. Borrowings under the ABL Term Loan may be repaid from time to time at the discretion of the borrowers without premium or penalty. However, any principal amount of ABL Term Loan repaid may not be subsequently re-borrowed. Interest rates under the ABL Term Loan are based, at our election, on either LIBOR or a base rate, as defined in the Amended Agreement, plus a spread over the index elected that ranges from 1.75% to 2.00% for LIBOR rate loans and from 0.75% to 1.00% for base rate loans, both dependent on the amount of Average Excess Availability (as defined in the Amended Agreement). During the three months ended March 31, 2021, the average interest rate on the ABL Term Loan was approximately 1.87%. We have received and expect to continue receiving patronage credits under the ABL Term Loan. Patronage credits are distributions of profits from banks in the Farm Credit system, which are cooperatives that are required to distribute profits to their members. Patronage distributions, which are generally made in cash, are received in the year after they are earned. Patronage credits are recorded as a reduction to interest expense in the year earned. After giving effect to expected patronage distributions, the effective average net interest rate on the ABL Term Loan was approximately 0.9% during the three months ended March 31, 2021. 2030 Notes On July 27, 2020, we issued $400 million of 4.875% senior notes due July 1, 2030 (2030 Notes) through a private placement that was exempt from the registration requirements of the Securities Act. Interest on our 2030 Notes is payable semiannually in arrears on January 1 and July 1. The 2030 Notes are guaranteed by each of our existing and future direct or indirect domestic subsidiaries that is a guarantor under our Amended Agreement. The 2030 Notes are senior unsecured obligations and rank equally with all of the existing and future senior indebtedness of Boise Cascade Company and of the guarantors, senior to all of their existing and future subordinated indebtedness, effectively subordinated to all of their present and future senior secured indebtedness (including all borrowings with respect to our Amended Agreement to the extent of the value of the assets securing such indebtedness), and structurally subordinated to the indebtedness of any subsidiaries that do not guarantee the 2030 Notes. The terms of the indenture governing the 2030 Notes, among other things, limit the ability of Boise Cascade and our restricted subsidiaries to: incur additional debt; declare or pay dividends; redeem stock or make other distributions to stockholders; make investments; create liens on assets; consolidate, merge or transfer substantially all of their assets; enter into transactions with affiliates; and sell or transfer certain assets. The indenture governing the 2030 Notes permits us to pay dividends only if at the time of payment (i) no default has occurred or is continuing (or would result from such payment) under the indenture, and (ii) our consolidated leverage ratio is no greater than 3.5:1, or (iii) the dividend, together with other dividends since the issue date, would not exceed our "builder" basket under the indenture. In addition, the indenture includes certain specific baskets for the payment of dividends. The indenture governing the 2030 Notes provides for customary events of default and remedies. Interest Rate Swaps For information on interest rate swaps, see Interest Rate Risk and Interest Rate Swaps of Note 2, Summary of Significant Accounting Policies. Cash Paid for Interest For the three months ended March 31, 2021 and 2020, cash payments for interest were $8.7 million and $10.7 million, respectively. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lessee, Operating Leases | Leases Lease Costs The components of lease expense were as follows: Three Months Ended 2021 2020 (thousands) Operating lease cost $ 3,363 $ 3,346 Finance lease cost Amortization of right-of-use assets 606 447 Interest on lease liabilities 592 485 Variable lease cost 785 707 Short-term lease cost 1,083 1,133 Sublease income (30) (39) Total lease cost $ 6,399 $ 6,079 Other Information Supplemental cash flow information related to leases was as follows: Three Months Ended 2021 2020 (thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,250 $ 3,329 Operating cash flows from finance leases 586 485 Financing cash flows from finance leases 380 264 Right-of-use assets obtained in exchange for lease obligations Operating leases — 2,608 Finance leases — 974 Other information related to leases was as follows: March 31, 2021 December 31, 2020 Weighted-average remaining lease term (years) Operating leases 7 8 Finance leases 15 15 Weighted-average discount rate Operating leases 6.3 % 6.4 % Finance leases 7.7 % 7.7 % As of March 31, 2021, our minimum lease payment requirements for noncancelable operating and finance leases are as follows: Operating Leases Finance Leases (thousands) Remainder of 2021 $ 10,327 $ 2,910 2022 13,007 3,879 2023 12,055 3,919 2024 11,171 3,916 2025 9,428 3,601 Thereafter 25,545 37,801 Total future minimum lease payments 81,533 56,026 Less: interest (17,963) (23,418) Total lease obligations 63,570 32,608 Less: current obligations (10,133) (1,549) Long-term lease obligations $ 53,437 $ 31,059 As of March 31, 2021, the minimum lease payment amount for leases signed but not yet commenced was $7.3 million. |
Leases, Finance Leases | Leases Lease Costs The components of lease expense were as follows: Three Months Ended 2021 2020 (thousands) Operating lease cost $ 3,363 $ 3,346 Finance lease cost Amortization of right-of-use assets 606 447 Interest on lease liabilities 592 485 Variable lease cost 785 707 Short-term lease cost 1,083 1,133 Sublease income (30) (39) Total lease cost $ 6,399 $ 6,079 Other Information Supplemental cash flow information related to leases was as follows: Three Months Ended 2021 2020 (thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,250 $ 3,329 Operating cash flows from finance leases 586 485 Financing cash flows from finance leases 380 264 Right-of-use assets obtained in exchange for lease obligations Operating leases — 2,608 Finance leases — 974 Other information related to leases was as follows: March 31, 2021 December 31, 2020 Weighted-average remaining lease term (years) Operating leases 7 8 Finance leases 15 15 Weighted-average discount rate Operating leases 6.3 % 6.4 % Finance leases 7.7 % 7.7 % As of March 31, 2021, our minimum lease payment requirements for noncancelable operating and finance leases are as follows: Operating Leases Finance Leases (thousands) Remainder of 2021 $ 10,327 $ 2,910 2022 13,007 3,879 2023 12,055 3,919 2024 11,171 3,916 2025 9,428 3,601 Thereafter 25,545 37,801 Total future minimum lease payments 81,533 56,026 Less: interest (17,963) (23,418) Total lease obligations 63,570 32,608 Less: current obligations (10,133) (1,549) Long-term lease obligations $ 53,437 $ 31,059 As of March 31, 2021, the minimum lease payment amount for leases signed but not yet commenced was $7.3 million. |
Retirement and Benefit Plans (N
Retirement and Benefit Plans (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement and Benefit Plans | Retirement and Benefit Plans The following table presents the pension benefit costs: Three Months Ended 2021 2020 (thousands) Service cost $ — $ 168 Interest cost 24 1,473 Expected return on plan assets — (1,374) Amortization of actuarial (gain) loss (5) 202 Plan settlement loss — 86 Net periodic benefit expense $ 19 $ 555 Service cost is recorded in the same income statement line items as other employee compensation costs arising from services rendered, and the other components of net periodic benefit expense are recorded in "Pension expense (excluding service costs)" in our Consolidated Statements of Operations. During the three months ended March 31, 2021, we paid $0.1 million in cash to the nonqualified pension plan participants. For the remainder of 2021, we expect to make approximately $0.3 million in cash payments to our nonqualified pension plan participants. |
Stock-Based Compensation (Notes
Stock-Based Compensation (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In first quarter 2021 and 2020, we granted two types of stock-based awards under our incentive plan: performance stock units (PSUs) and restricted stock units (RSUs). PSU and RSU Awards During the three months ended March 31, 2021, we granted 73,265 PSUs to our officers and other employees, subject to performance and service conditions. For the officers, the number of shares actually awarded will range from 0% and 200% of the target amount, depending upon Boise Cascade's 2021 return on invested capital (ROIC), as approved by our Compensation Committee in accordance with the related grant agreement. For the other employees, the number of shares actually awarded will range from 0% to 200% of the target amount, depending upon Boise Cascade’s 2021 EBITDA, defined as income before interest (interest expense and interest income), income taxes, and depreciation and amortization, determined in accordance with the related grant agreement. Because the ROIC and EBITDA components contain a performance condition, we record compensation expense over the requisite service period based on the most probable number of shares expected to vest. During the three months ended March 31, 2020, we granted 94,850 PSUs to our officers and other employees, subject to performance and service conditions. During the 2020 performance period, officers and other employees both earned 200% of the target based on Boise Cascade’s 2020 ROIC and EBITDA, determined by our Compensation Committee in accordance with the related grant agreement. The PSUs granted to officers generally vest in a single installment three years from the date of grant, while the PSUs granted to other employees vest in three equal tranches each year after the grant date. During the three months ended March 31, 2021 and 2020, we granted an aggregate of 96,622 and 125,716 RSUs, respectively, to our officers, other employees, and nonemployee directors with only service conditions. The RSUs granted to officers and other employees vest in three equal tranches each year after the grant date. The RSUs granted to nonemployee directors vest over a one year period. We based the fair value of PSU and RSU awards on the closing market price of our common stock on the grant date. During the three months ended March 31, 2021 and 2020, the total fair value of PSUs and RSUs vested was $9.2 million and $11.1 million, respectively. The following summarizes the activity of our PSUs and RSUs awarded under our incentive plan for the three months ended March 31, 2021: PSUs RSUs Number of shares Weighted Average Grant-Date Fair Value Number of shares Weighted Average Grant-Date Fair Value Outstanding, December 31, 2020 196,340 $ 35.34 212,766 $ 34.24 Granted 73,265 52.45 96,622 52.45 Performance condition adjustment (a) 94,850 36.45 — — Vested (68,223) 38.70 (106,200) 35.64 Forfeited (11,775) 34.89 (7,398) 33.79 Outstanding, March 31, 2021 284,457 $ 39.33 195,790 $ 42.48 _______________________________ (a) Represents additional PSUs granted during the three months ended March 31, 2021, related to the 2020 performance condition adjustment described above. Compensation Expense We record compensation expense over the awards' vesting period and account for share-based award forfeitures as they occur, rather than making estimates of future forfeitures. Any shares not vested are forfeited. We recognize stock awards with only service conditions on a straight-line basis over the requisite service period. Most of our share-based compensation expense was recorded in "General and administrative expenses" in our Consolidated Statements of Operations. Total stock-based compensation recognized from PSUs and RSUs, net of forfeitures, was as follows: Three Months Ended 2021 2020 (thousands) PSUs $ 1,089 $ 610 RSUs 1,003 1,064 Total $ 2,092 $ 1,674 The related tax benefit for the three months ended March 31, 2021 and 2020, was $0.5 million and $0.4 million respectively. As of March 31, 2021, total unrecognized compensation expense related to nonvested share-based compensation arrangements was $18.9 million. This expense is expected to be recognized over a weighted-average period of 2.3 years. |
Stockholders' Equity (Notes)
Stockholders' Equity (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Dividends On November 14, 2017, we announced that our board of directors approved a dividend policy to pay quarterly cash dividends to holders of our common stock. For more information regarding our dividend declarations and payments made during each of the three months ended March 31, 2021 and 2020, see "Common stock dividends" on our Consolidated Statements of Stockholders' Equity. On May 6, 2021, our board of directors declared a quarterly dividend of $0.10 per share on our common stock, payable on June 15, 2021, to stockholders of record on June 1, 2021. For a description of the restrictions in our asset-based credit facility and the indenture governing our senior notes on our ability to pay dividends, see Note 6, Debt. Future dividend declarations, including amount per share, record date and payment date, will be made at the discretion of our board of directors and will depend upon, among other things, legal capital requirements and surplus, our future operations and earnings, general financial condition, contractual obligations, restrictions imposed by our asset-based credit facility and the indenture governing our senior notes, applicable laws, and other factors that our board of directors may deem relevant. Accumulated Other Comprehensive Loss The following table details the changes in accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020: Three Months Ended 2021 2020 (thousands) Beginning balance, net of taxes $ (1,078) $ (50,248) Amortization of actuarial (gain) loss, before taxes (a) (5) 202 Effect of settlements, before taxes (a) — 86 Income taxes 1 (73) Ending balance, net of taxes $ (1,082) $ (50,033) ___________________________________ (a) Represents amounts reclassified from accumulated other comprehensive loss. These amounts are included in the computation of net periodic pension cost. For additional information, see Note 8, Retirement and Benefit Plans. |
Transactions With Related Party
Transactions With Related Party (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Transactions With Related Party | Transactions With Related Party Louisiana Timber Procurement Company, L.L.C. (LTP) is an unconsolidated variable-interest entity that is 50% owned by us and 50% owned by Packaging Corporation of America (PCA). LTP procures sawtimber, pulpwood, residual chips, and other residual wood fiber to meet the wood and fiber requirements of us and PCA in Louisiana. We are not the primary beneficiary of LTP as we do not have power to direct the activities that most significantly affect the economic performance of LTP. Accordingly, we do not consolidate LTP's results in our financial statements. Sales Related-party sales to LTP from our Wood Products segment in our Consolidated Statements of Operations were $3.3 million and $4.2 million, respectively, during the three months ended March 31, 2021 and 2020. These sales are recorded in "Sales" in our Consolidated Statements of Operations. Costs and Expenses |
Segment Information (Notes)
Segment Information (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We operate our business using two reportable segments: Wood Products and Building Materials Distribution. Unallocated corporate costs are presented as reconciling items to arrive at operating income. There are no differences in our basis of measurement of segment profit or loss from those disclosed in Note 17, Segment Information, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2020 Form 10-K. Wood Products and Building Materials Distribution segment sales to external customers, including related parties, by product line are as follows: Three Months Ended 2021 2020 (millions) Wood Products (a) LVL $ 6.0 $ 6.1 I-joists 4.8 4.5 Other engineered wood products 10.6 6.4 Plywood and veneer 122.9 63.8 Lumber 18.9 12.3 Byproducts 17.6 20.7 Other 5.8 6.8 186.5 120.5 Building Materials Distribution Commodity 906.2 440.3 General line 472.7 397.3 Engineered wood products 255.9 212.4 1,634.8 1,050.0 $ 1,821.3 $ 1,170.5 ___________________________________ (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 three months ended March 31, 2021 and 2020, approximately 78% and 79%, respectively, of Wood Products' EWP sales volumes were to our Building Materials Distribution segment. An analysis of our operations by segment is as follows: Three Months Ended 2021 2020 (thousands) Net sales by segment Wood Products $ 432,335 $ 320,061 Building Materials Distribution 1,634,777 1,049,997 Intersegment eliminations (a) (245,796) (199,524) Total net sales $ 1,821,316 $ 1,170,534 Segment operating income Wood Products (b) $ 97,052 $ 3,763 Building Materials Distribution 120,219 29,302 Total segment operating income 217,271 33,065 Unallocated corporate costs (12,010) (7,518) Income from operations $ 205,261 $ 25,547 ___________________________________ (a) Primarily represents intersegment sales from our Wood Products segment to our Building Materials Distribution segment. (b) Wood Products segment operating income for the three months ended March 31, 2020, included $15.0 million of accelerated depreciation and $1.7 million of other closure-related costs due to the permanent curtailment of I-joist production at our Roxboro, North Carolina facility. For more information, see Note 5, Curtailment of Manufacturing Facility. |
Commitments, Legal Proceedings
Commitments, Legal Proceedings and Contingencies, and Guarantees (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments Contingencies and Guarantees [Text Block] | Commitments, Legal Proceedings and Contingencies, and Guarantees Commitments We are a party to a number of long-term log supply agreements that are discussed in Note 18, Commitments, Legal Proceedings and Contingencies, and Guarantees, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2020 Form 10-K. In addition, we have purchase obligations for goods and services, capital expenditures, and raw materials entered into in the normal course of business. As of March 31, 2021, there have been no material changes to the above commitments disclosed in the 2020 Form 10-K. Legal Proceedings and Contingencies We are a party to legal proceedings that arise in the ordinary course of our business, including commercial liability claims, premises claims, environmental claims, and employment-related claims, among others. As of the date of this filing, we believe it is not reasonably possible that any of the legal actions against us will, individually or in the aggregate, have a material adverse effect on our financial position, results of operations, or cash flows. Guarantees |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of Estimates [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets, and other long-lived assets; legal contingencies; guarantee obligations; indemnifications; assumptions used in retirement, medical, and workers' compensation benefits; assumptions used in the determination of right-of-use assets and related lease liabilities; stock-based compensation; fair value measurements; income taxes; and vendor and customer rebates, among others. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods. |
Revenue Recognition [Policy Text Block] | Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For revenue disaggregated by major product line for each reportable segment, see Note 12, Segment Information. Fees for shipping and handling charged to customers for sales transactions are included in "Sales" in our Consolidated Statements of Operations. When control over products has transferred to the customer, we have elected to recognize costs related to shipping and handling as fulfillment costs. For our Wood Products segment, costs related to shipping and handling are included in "Materials, labor, and other operating expenses (excluding depreciation)" in our Consolidated Statements of Operations. In our Wood Products segment, we view our shipping and handling costs as a cost of the manufacturing process and the movement of product to our end customers. For our Building Materials Distribution segment, costs related to shipping and handling of $46.5 million and $40.7 million, for the three months ended March 31, 2021 and 2020, respectively, are included in "Selling and distribution expenses" in our Consolidated Statements of Operations. In our Building Materials Distribution segment, our activities relate to the purchase and resale of finished product, and excluding shipping and handling costs from “Materials, labor, and other operating expenses (excluding depreciation)” provides us a clearer view of our operating performance and the effectiveness of our sales and purchasing functions. Customer Rebates and Allowances Rebates are provided to our customers and our customers' customers based on the volume of their purchases, among other factors such as customer loyalty, conversion, and commitment. We provide the rebates to increase the sell-through of our products. Rebates are generally estimated based on the expected amount to be paid and recorded as a decrease in "Sales." At March 31, 2021, and December 31, 2020, we had $56.4 million and $56.3 million, respectively, of rebates payable to our customers recorded in "Accrued liabilities, Other" on our Consolidated Balance Sheets. We adjust our estimate of revenue at the earlier of when the probability of rebates paid changes or when the amounts become fixed. There have not been significant changes to our estimates of rebates, although it is reasonably possible that a change in the estimate may occur. |
Vendor Rebates and Allowances [Policy Text Block] | Rebates and allowances received from our vendors are recognized as a reduction of "Materials, labor, and other operating expenses (excluding depreciation)" when the product is sold, unless the rebates and allowances are linked to a specific incremental cost to sell a vendor's product. Amounts received from vendors that are linked to specific selling and distribution expenses are recognized as a reduction of "Selling and distribution expenses" in the period the expense is incurred. |
Lessee, Leases [Policy Text Block] | Leases We primarily lease land, building, and equipment under operating and finance leases. We determine if an arrangement is a lease at inception and assess lease classification as either operating or finance at lease inception or upon modification. Substantially all of our leases with initial terms greater than one year are for real estate, including distribution centers, corporate headquarters, land, and other office space. Substantially all of these lease agreements have fixed payment terms based on the passage of time and are recorded in our Building Materials Distribution segment. Many of our leases include fixed escalation clauses, renewal options and/or termination options that are factored into our determination of lease term and lease payments when appropriate. Renewal options generally range from one to ten years with fixed payment terms similar to those in the original lease agreements. Some lease agreements provide us with the option to purchase the leased property at market value. Our lease agreements do not contain any residual value guarantees. Right-of-use (ROU) assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of fixed lease payments over the lease term. The current portion of our operating and finance lease liabilities are recorded in "Accrued liabilities, Other" on our Consolidated Balance Sheets. We use our estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of lease payments. In determining our incremental borrowing rates, we give consideration to publicly available interest rates for instruments with similar characteristics, including credit rating, term, and collateralization. For purposes of determining straight-line rent expense, the lease term is calculated from the date we first take possession of the facility, including any periods of free rent and any renewal option periods we are reasonably certain of exercising. Variable lease expense generally includes reimbursement of actual costs for common area maintenance, property taxes, and insurance on leased real estate and are recorded as incurred. Most of our operating lease expense is recorded in "Selling and distribution expenses" in our Consolidated Statements of Operations. In addition, we do not separate lease and non-lease components for all of our leases. |
Fair Value [Policy Text Block] | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy under GAAP gives the highest priority to quoted market prices (Level 1) and the lowest priority to unobservable inputs (Level 3). In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value (Level 1). If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, we use quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly (Level 2). If quoted prices for identical or similar assets are not available or are unobservable, we may use internally developed valuation models, whose inputs include bid prices, and third-party valuations utilizing underlying asset assumptions (Level 3). |
Financial Instruments [Policy Text Block] | Financial Instruments Our financial instruments are cash and cash equivalents, accounts receivable, accounts payable, long-term debt, and interest rate swaps. Our cash is recorded at cost, which approximates fair value, and our cash equivalents are money market funds. As of March 31, 2021, and December 31, 2020, we held $399.0 million and $371.8 million, respectively, in money market funds that are measured at fair value on a recurring basis using Level 1 inputs. The recorded values of accounts receivable and accounts payable approximate fair values based on their short-term nature. At March 31, 2021, and December 31, 2020, the book value of our fixed-rate debt for each period was $400.0 million, and the fair value was estimated to be $418.5 million and $432.0 million, respectively. The difference between the book value and the fair value is derived from the difference between the period-end market interest rate and the stated rate of our fixed-rate, long-term debt. We estimated the fair value of our fixed-rate debt using quoted market prices of our debt in inactive markets (Level 2 inputs). The interest rate on our variable-rate debt is based on market conditions such as the London Interbank Offered Rate (LIBOR) or a base rate. Because the interest rate on the variable-rate debt is based on current market conditions, we believe that the estimated fair value of the outstanding balance on our variable-rate debt approximates book value. As discussed below, we also have interest rate swaps to mitigate our variable interest rate exposure, the fair value of which is measured based on Level 2 inputs. |
Derivatives [Policy Text Block] | In accordance with our risk management strategy, we actively monitor our interest rate exposure and use derivative instruments from time to time to manage the related risk. We do not speculate using derivative instruments. |
New and recently adopted accounting standards [Policy Text Block] | New and Recently Adopted Accounting Standards In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which refines the scope of Topic 848 and clarifies some of its guidance as it related to recent rate reform activities. Our current contracts that reference LIBOR include certain debt instruments and interest rate swaps. The amendments are effective for eligible contract modifications subsequent to March 12, 2020, and through December 31, 2022. The adoption of these standards did not and are not expected to have a material effect on our financial statements, but we will assess any eligible contract modifications in the future. There were no other accounting standards recently issued that had or are expected to have a material impact on our consolidated financial statements and associated disclosures. |
Compensation Related Costs [Policy Text Block] | We record compensation expense over the awards' vesting period and account for share-based award forfeitures as they occur, rather than making estimates of future forfeitures. Any shares not vested are forfeited. We recognize stock awards with only service conditions on a straight-line basis over the requisite service period. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Inventories [Table Text Block] | Inventories included the following (work in process is not material): March 31, December 31, (thousands) Finished goods and work in process $ 533,772 $ 431,663 Logs 40,872 35,622 Other raw materials and supplies 37,056 36,195 $ 611,700 $ 503,480 |
Property and Equipment [Table Text Block] | Property and equipment consisted of the following asset classes: March 31, December 31, (thousands) Land $ 47,099 $ 47,099 Buildings 152,076 151,718 Improvements 64,310 64,178 Mobile equipment, information technology, and office furniture 178,102 178,271 Machinery and equipment 686,442 687,768 Construction in progress 48,917 40,606 1,176,946 1,169,640 Less accumulated depreciation (720,879) (708,184) $ 456,067 $ 461,456 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share [Table Text Block] | The following table sets forth the computation of basic and diluted net income per common share: Three Months Ended 2021 2020 (thousands, except per-share data) Net income $ 149,156 $ 12,200 Weighted average common shares outstanding during the period (for basic calculation) 39,355 39,163 Dilutive effect of other potential common shares 275 242 Weighted average common shares and potential common shares (for diluted calculation) 39,630 39,405 Net income per common share - Basic $ 3.79 $ 0.31 Net income per common share - Diluted $ 3.76 $ 0.31 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt [Table Text Block] | Long-term debt consisted of the following: March 31, December 31, (thousands) Asset-based revolving credit facility due 2025 $ — $ — Asset-based credit facility term loan due 2025 50,000 50,000 4.875% senior notes due 2030 400,000 400,000 Deferred financing costs (5,999) (6,208) Long-term debt $ 444,001 $ 443,792 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease Costs [Table Text Block] | The components of lease expense were as follows: Three Months Ended 2021 2020 (thousands) Operating lease cost $ 3,363 $ 3,346 Finance lease cost Amortization of right-of-use assets 606 447 Interest on lease liabilities 592 485 Variable lease cost 785 707 Short-term lease cost 1,083 1,133 Sublease income (30) (39) Total lease cost $ 6,399 $ 6,079 |
Lease Supplemental Cash Flow [Table Text Block] | Supplemental cash flow information related to leases was as follows: Three Months Ended 2021 2020 (thousands) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,250 $ 3,329 Operating cash flows from finance leases 586 485 Financing cash flows from finance leases 380 264 Right-of-use assets obtained in exchange for lease obligations Operating leases — 2,608 Finance leases — 974 |
Lease Weighted-average Term and Discount Rate [Table Text Block] | Other information related to leases was as follows: March 31, 2021 December 31, 2020 Weighted-average remaining lease term (years) Operating leases 7 8 Finance leases 15 15 Weighted-average discount rate Operating leases 6.3 % 6.4 % Finance leases 7.7 % 7.7 % |
Minimum Lease Payment Requirements for Operating Lease Liability - Topic 842 [Table Text Block] | As of March 31, 2021, our minimum lease payment requirements for noncancelable operating and finance leases are as follows: Operating Leases Finance Leases (thousands) Remainder of 2021 $ 10,327 $ 2,910 2022 13,007 3,879 2023 12,055 3,919 2024 11,171 3,916 2025 9,428 3,601 Thereafter 25,545 37,801 Total future minimum lease payments 81,533 56,026 Less: interest (17,963) (23,418) Total lease obligations 63,570 32,608 Less: current obligations (10,133) (1,549) Long-term lease obligations $ 53,437 $ 31,059 |
Minimum Lease Payment Requirements for Finance Lease Liability - Topic 842 [Table Text Block] | As of March 31, 2021, our minimum lease payment requirements for noncancelable operating and finance leases are as follows: Operating Leases Finance Leases (thousands) Remainder of 2021 $ 10,327 $ 2,910 2022 13,007 3,879 2023 12,055 3,919 2024 11,171 3,916 2025 9,428 3,601 Thereafter 25,545 37,801 Total future minimum lease payments 81,533 56,026 Less: interest (17,963) (23,418) Total lease obligations 63,570 32,608 Less: current obligations (10,133) (1,549) Long-term lease obligations $ 53,437 $ 31,059 |
Retirement and Benefit Plans (T
Retirement and Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement and Benefit Plans [Table Text Block] | The following table presents the pension benefit costs: Three Months Ended 2021 2020 (thousands) Service cost $ — $ 168 Interest cost 24 1,473 Expected return on plan assets — (1,374) Amortization of actuarial (gain) loss (5) 202 Plan settlement loss — 86 Net periodic benefit expense $ 19 $ 555 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Share Activity [Table Text Block] | The following summarizes the activity of our PSUs and RSUs awarded under our incentive plan for the three months ended March 31, 2021: PSUs RSUs Number of shares Weighted Average Grant-Date Fair Value Number of shares Weighted Average Grant-Date Fair Value Outstanding, December 31, 2020 196,340 $ 35.34 212,766 $ 34.24 Granted 73,265 52.45 96,622 52.45 Performance condition adjustment (a) 94,850 36.45 — — Vested (68,223) 38.70 (106,200) 35.64 Forfeited (11,775) 34.89 (7,398) 33.79 Outstanding, March 31, 2021 284,457 $ 39.33 195,790 $ 42.48 _______________________________ |
Stock-Based Compensation Expense Recognized [Table Text Block] | Total stock-based compensation recognized from PSUs and RSUs, net of forfeitures, was as follows: Three Months Ended 2021 2020 (thousands) PSUs $ 1,089 $ 610 RSUs 1,003 1,064 Total $ 2,092 $ 1,674 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Changes in Accumulated Other Comprehensive Loss [Table Text Block] | The following table details the changes in accumulated other comprehensive loss for the three months ended March 31, 2021 and 2020: Three Months Ended 2021 2020 (thousands) Beginning balance, net of taxes $ (1,078) $ (50,248) Amortization of actuarial (gain) loss, before taxes (a) (5) 202 Effect of settlements, before taxes (a) — 86 Income taxes 1 (73) Ending balance, net of taxes $ (1,082) $ (50,033) ___________________________________ (a) Represents amounts reclassified from accumulated other comprehensive loss. These amounts are included in the computation of net periodic pension cost. For additional information, see Note 8, Retirement and Benefit Plans. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting [Abstract] | ||
Sales by Product Line [Table Text Block] | Wood Products and Building Materials Distribution segment sales to external customers, including related parties, by product line are as follows: Three Months Ended 2021 2020 (millions) Wood Products (a) LVL $ 6.0 $ 6.1 I-joists 4.8 4.5 Other engineered wood products 10.6 6.4 Plywood and veneer 122.9 63.8 Lumber 18.9 12.3 Byproducts 17.6 20.7 Other 5.8 6.8 186.5 120.5 Building Materials Distribution Commodity 906.2 440.3 General line 472.7 397.3 Engineered wood products 255.9 212.4 1,634.8 1,050.0 $ 1,821.3 $ 1,170.5 ___________________________________ (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 three months ended March 31, 2021 and 2020, approximately 78% and 79%, respectively, of Wood Products' EWP sales volumes were to our Building Materials Distribution segment. | |
Segment information [Table Text Block] | An analysis of our operations by segment is as follows: Three Months Ended 2021 2020 (thousands) Net sales by segment Wood Products $ 432,335 $ 320,061 Building Materials Distribution 1,634,777 1,049,997 Intersegment eliminations (a) (245,796) (199,524) Total net sales $ 1,821,316 $ 1,170,534 Segment operating income Wood Products (b) $ 97,052 $ 3,763 Building Materials Distribution 120,219 29,302 Total segment operating income 217,271 33,065 Unallocated corporate costs (12,010) (7,518) Income from operations $ 205,261 $ 25,547 ___________________________________ (a) Primarily represents intersegment sales from our Wood Products segment to our Building Materials Distribution segment. (b) Wood Products segment operating income for the three months ended March 31, 2020, included $15.0 million of accelerated depreciation and $1.7 million of other closure-related costs due to the permanent curtailment of I-joist production at our Roxboro, North Carolina facility. For more information, see Note 5, Curtailment of Manufacturing Facility. |
Nature of Operations and Cons_2
Nature of Operations and Consolidation (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies:Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue from External Customer [Line Items] | |||
Customer Rebates and Allowances | $ 56.4 | $ 56.3 | |
Building Materials Distribution [Member] | Shipping and Handling [Member] | |||
Revenue from External Customer [Line Items] | |||
Cost of Goods and Services Sold | $ 46.5 | $ 40.7 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Summary of Significant Accounting Policies:Vendor Rebates and Allowances (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||
Vendor Rebates and Allowances | $ 8.2 | $ 9.9 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Summary of Significant Accounting Policies:Leases (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |
Lease Term, Minimum Initial Term of Real Estate Leases | 1 year |
Real Estate Leases, Cancellation Notice, Latest Notice | 30 days |
Real Estate Leases, Cancellation Notice, Earliest Notice | 90 days |
Minimum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Renewal Term | 1 year |
Maximum [Member] | |
Lessee, Lease, Description [Line Items] | |
Lessee, Operating Lease, Renewal Term | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies:Inventory Valuation (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory, Net [Abstract] | ||
Finished goods and work in process | $ 533,772 | $ 431,663 |
Logs | 40,872 | 35,622 |
Other raw materials and supplies | 37,056 | 36,195 |
Inventories | $ 611,700 | $ 503,480 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies:Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,176,946 | $ 1,169,640 |
Less accumulated depreciation | (720,879) | (708,184) |
Property and equipment, net | 456,067 | 461,456 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 47,099 | 47,099 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 152,076 | 151,718 |
Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 64,310 | 64,178 |
Mobile equipment, information technology, and office furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 178,102 | 178,271 |
Machinery and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 686,442 | 687,768 |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 48,917 | $ 40,606 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies:Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Long-term debt | $ 444,001 | $ 443,792 |
Reported Value Measurement [Member] | 4.875% Senior Notes Due 2030 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Fixed-rate debt | 400,000 | 400,000 |
Level 2 [Member] | Estimate of Fair Value Measurement [Member] | 4.875% Senior Notes Due 2030 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Fixed-rate debt | 418,500 | 432,000 |
Fair Value, Recurring [Member] | Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ||
Cash equivalents, fair value | $ 399,000 | $ 371,800 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies:Interest Rate Risk and Interest Rate Swaps (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Interest Rate Derivatives [Line Items] | ||
Long-term debt | $ 444,001 | $ 443,792 |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Other assets [Member] | ||
Interest Rate Derivatives [Line Items] | ||
Fair value of interest rate swap agreements, Asset | 900 | |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member] | Other Noncurrent Liabilities [Member] | ||
Interest Rate Derivatives [Line Items] | ||
Fair value of interest rate swap agreements, Liability | 400 | $ 600 |
Interest Rate Swap - $50 million notional amount fixed at 1.007% [Member] | Not Designated as Hedging Instrument [Member] | ||
Interest Rate Derivatives [Line Items] | ||
Interest rate swaps, notional amount | $ 50,000 | |
Interest rate swaps, fixed interest rate | 1.007% | |
Interest Rate Swap - $50 million notional amount fixed at 0.39% [Member] | Not Designated as Hedging Instrument [Member] | ||
Interest Rate Derivatives [Line Items] | ||
Interest rate swaps, notional amount | $ 50,000 | |
Interest rate swaps, forward interest rate | 0.39% | |
ABL Term Loan Due 2025 | ||
Interest Rate Derivatives [Line Items] | ||
Long-term debt | $ 50,000 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies:Concentration of Credit Risk (Details) - Accounts Receivable [Member] - Credit Concentration Risk [Member] | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 11.00% | 12.00% |
Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk, Percentage | 17.00% | 13.00% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ 51,448 | $ 4,007 |
Effective income tax rate (as a percent) | 25.60% | 24.70% |
Statutory U.S. income tax rate (as a percent) | 21.00% | 21.00% |
Income taxes paid (refunds), net | $ 1,000 | $ 5,300 |
Net Income Per Common Share (De
Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income | $ 149,156 | $ 12,200 |
Computation of basic and diluted net income per common share | ||
Weighted average common shares outstanding during the period (for basic calculation) | 39,355 | 39,163 |
Dilutive effect of other potential common shares | 275 | 242 |
Weighted average common shares and potential common shares (for diluted calculation) | 39,630 | 39,405 |
Net income per common share - Basic | $ 3.79 | $ 0.31 |
Net income per common share - Diluted | $ 3.76 | $ 0.31 |
Curtailment of Manufacturing _2
Curtailment of Manufacturing Facility (Details) - Curtailment of I-joist Production at Roxboro, NC Facility - USD ($) $ in Millions | Mar. 31, 2020 | Feb. 20, 2020 | Mar. 31, 2020 |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Activities, Initiation Date | Feb. 20, 2020 | ||
Restructuring and Related Activities, Completion Date | Mar. 31, 2020 | ||
Accelerated depreciation | $ 15 | ||
Loss on curtailment of facility | |||
Restructuring Cost and Reserve [Line Items] | |||
Other closure-related costs | $ 1.7 |
Debt_Summary Table (Details)
Debt:Summary Table (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Deferred financing costs | $ (5,999) | $ (6,208) |
Long-term debt | 444,001 | 443,792 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 0 | 0 |
4.875% Senior Notes Due 2030 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 400,000 | 400,000 |
ABL Term Loan Due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 50,000 | $ 50,000 |
Long-term debt | $ 50,000 |
Debt Asset-Based Revolving Cred
Debt Asset-Based Revolving Credit Facility (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 350,000 | |
Commitment fee rate (as a percentage) | 0.25% | |
Amount outstanding on Revolving Credit Facility | $ 0 | $ 0 |
Letters of credit outstanding | $ 4,700 | $ 4,800 |
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 1.25% | |
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 1.50% | |
Revolving Credit Facility [Member] | Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 0.25% | |
Revolving Credit Facility [Member] | Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 0.50% | |
Asset Based Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Fixed charge coverage ratio requirement, if availability falls below 10% of aggregate lending commitments (as a percent) | 100.00% | |
Threshold of availability as a percentage of aggregate lending commitments, below which 1:1 fixed charge coverage ratio must be met | 10.00% | |
Threshold of availability, below which 1:1 fixed charge coverage ratio must be met | $ 35,000 | |
Current availability | $ 345,300 | |
Dividend restriction, single threshold, percentage of aggregate Revolver Commitments | 25.00% | |
Dividend restriction, combination thresholds, percentage of aggregate Revolver Commitments | 15.00% | |
Dividend restriction, combination thresholds, fixed-charge coverage ratio (as a percent) | 100.00% | |
ABL Term Loan Due 2025 | ||
ABL Term Loan [Abstract] | ||
Debt Instrument, Face Amount | $ 50,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.87% | |
Debt Instrument, Interest Rate During Period With Patronage Credits | 0.90% | |
ABL Term Loan Due 2025 | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 1.75% | |
ABL Term Loan Due 2025 | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 2.00% | |
ABL Term Loan Due 2025 | Base Rate [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 0.75% | |
ABL Term Loan Due 2025 | Base Rate [Member] | Maximum [Member] | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable interest rate | 1.00% |
Debt_2030 Notes (Details)
Debt:2030 Notes (Details) - 4.875% Senior Notes Due 2030 [Member] - Senior Notes [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Jul. 27, 2020 | |
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 400,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | |
Dividend restriction, interest coverage ratio (as a percent) | 350.00% |
Debt_Cash Paid for Interest (De
Debt:Cash Paid for Interest (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Interest Paid | $ 8.7 | $ 10.7 |
Leases_Costs (Details)
Leases:Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 3,363 | $ 3,346 |
Amortization of right-of-use assets | 606 | 447 |
Interest on lease liabilities | 592 | 485 |
Variable lease cost | 785 | 707 |
Short-term lease cost | 1,083 | 1,133 |
Sublease income | (30) | (39) |
Total lease cost | $ 6,399 | $ 6,079 |
Leases_Other Information (Detai
Leases:Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | |||
Operating cash flows from operating leases | $ 3,250 | $ 3,329 | |
Operating cash flows from finance leases | 586 | 485 | |
Financing cash flows from finance leases | 380 | 264 | |
Right-of-use assets obtained in exchange for lease obligations, operating leases | 0 | 2,608 | |
Right-of-use assets obtained in exchange for lease obligations, finance leases | $ 0 | $ 974 | |
Weighted-average remaining lease term, operating leases | 7 years | 8 years | |
Weighted-average remaining lease term, finance leases | 15 years | 15 years | |
Weighted-average discount rate, operating leases | 6.30% | 6.40% | |
Weighted average discount rate, finance leases | 7.70% | 7.70% | |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |||
Remainder of 2021 | $ 10,327 | ||
2022 | 13,007 | ||
2023 | 12,055 | ||
2024 | 11,171 | ||
2025 | 9,428 | ||
Thereafter | 25,545 | ||
Total future minimum lease payments | 81,533 | ||
Less: interest | (17,963) | ||
Total lease obligations | 63,570 | ||
Less: current obligations | (10,133) | ||
Long-term lease obligations | 53,437 | $ 56,001 | |
Finance Lease, Liability, Payment, Due [Abstract] | |||
Remainder of 2021 | 2,910 | ||
2022 | 3,879 | ||
2023 | 3,919 | ||
2024 | 3,916 | ||
2025 | 3,601 | ||
Thereafter | 37,801 | ||
Total future minimum lease payments | 56,026 | ||
Less: interest | (23,418) | ||
Total lease obligations | 32,608 | ||
Less: current obligations | (1,549) | ||
Long-term lease obligations | 31,059 | $ 31,607 | |
Lessee, Operating Lease Not Yet Commenced, Future Payments Due | $ 7,300 |
Retirement and Benefit Plans (D
Retirement and Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net periodic benefit cost [Abstract] | ||
Service cost | $ 0 | $ 168 |
Interest cost | 24 | 1,473 |
Expected return on plan assets | 0 | (1,374) |
Amortization of actuarial (gain) loss | (5) | 202 |
Plan settlement loss | 0 | 86 |
Net periodic benefit expense | 19 | 555 |
Non-qualified pension plan payments [Abstract] | ||
Non-qualified pension plan payments | 78 | $ 726 |
Estimated remaining 2021 non-qualified pension plan payments | $ 300 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($)tranchstock_awards$ / sharesshares | Mar. 31, 2020USD ($)stock_awardsshares | Dec. 31, 2020$ / sharesshares | ||
Stock-Based Compensation [Abstract] | ||||
Number of types of stock-based awards granted (in types) | stock_awards | 2 | 2 | ||
Fair market value of awards | $ | $ 9,200 | $ 11,100 | ||
Stock-based compensation expense | $ | 2,092 | 1,674 | ||
Tax benefit from compensation expense | $ | 500 | 400 | ||
Unrecognized compensation expense | $ | $ 18,900 | |||
Unrecognized compensation, period for recognition | 2 years 3 months 18 days | |||
Performance Shares [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | $ | $ 1,089 | $ 610 | ||
Number of shares [Abstract] | ||||
Outstanding, December 31, 2020 | shares | 196,340 | |||
Granted | shares | 73,265 | 94,850 | ||
Performance condition adjustment (a) | shares | [1] | 94,850 | ||
Vested | shares | (68,223) | |||
Forfeited | shares | (11,775) | |||
Outstanding, March 31, 2021 | shares | 284,457 | 196,340 | ||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding, December 31, 2020 | $ / shares | $ 35.34 | |||
Granted | $ / shares | 52.45 | |||
Performance condition adjustment (a) | $ / shares | [1] | 36.45 | ||
Vested | $ / shares | 38.70 | |||
Forfeited | $ / shares | 34.89 | |||
Outstanding, March 31, 2021 | $ / shares | $ 39.33 | $ 35.34 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Stock-based compensation expense | $ | $ 1,003 | $ 1,064 | ||
Number of shares [Abstract] | ||||
Outstanding, December 31, 2020 | shares | 212,766 | |||
Granted | shares | 96,622 | 125,716 | ||
Performance condition adjustment (a) | shares | 0 | |||
Vested | shares | (106,200) | |||
Forfeited | shares | (7,398) | |||
Outstanding, March 31, 2021 | shares | 195,790 | 212,766 | ||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Outstanding, December 31, 2020 | $ / shares | $ 34.24 | |||
Granted | $ / shares | 52.45 | |||
Performance condition adjustment (a) | $ / shares | 0 | |||
Vested | $ / shares | 35.64 | |||
Forfeited | $ / shares | 33.79 | |||
Outstanding, March 31, 2021 | $ / shares | $ 42.48 | $ 34.24 | ||
Officer [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Performance Shares that could be awarded, as a percentage of ROIC target amount, minimum | 0.00% | |||
Performance Shares that could be awarded, as a percentage of ROIC target amount, maximum | 200.00% | |||
Performance Shares Target Percentage Earned, Officers | 200.00% | |||
Vesting period (in years) | 3 years | |||
Other employees [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Performance Shares that could be awarded, as a percentage of EBITDA target amount, minimum | 0.00% | |||
Performance Shares that could be awarded, as a percentage of EBITDA target amount, maximum | 200.00% | |||
Number of equal tranches for annual vesting (in tranches) | tranch | 3 | |||
Weighted Average Grant Date Fair Value [Abstract] | ||||
Performance Shares Target Percentage Earned, Other Employees | 200.00% | |||
Officers and other employees [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Number of equal tranches for annual vesting (in tranches) | tranch | 3 | |||
Nonemployee Directors [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Stock-Based Compensation [Abstract] | ||||
Vesting period (in years) | 1 year | |||
[1] | Represents additional PSUs granted during the three months ended March 31, 2021, related to the 2020 performance condition adjustment described above. |
Stockholders' Equity_Shares and
Stockholders' Equity:Shares and Dividends (Details) - $ / shares | May 06, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Subsequent Event [Line Items] | |||
Dividends declared per common share | $ 0.10 | $ 0.10 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Dividends Payable, Date Declared | May 6, 2021 | ||
Dividends declared per common share | $ 0.10 | ||
Dividends Payable, Date to be Paid | Jun. 15, 2021 | ||
Dividends Payable, Date of Record | Jun. 1, 2021 |
Stockholders' Equity_AOCI (Deta
Stockholders' Equity:AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, net of taxes | $ 850,799 | $ 701,330 | |
Amortization of actuarial (gain) loss, before taxes (a) | [1] | (5) | 202 |
Effect of settlements, before taxes (a) | [1] | 0 | 86 |
Income taxes | 1 | (73) | |
Ending balance, net of taxes | 995,261 | 708,271 | |
Accumulated Other Comprehensive Loss [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance, net of taxes | (1,078) | (50,248) | |
Ending balance, net of taxes | $ (1,082) | $ (50,033) | |
[1] | Represents amounts reclassified from accumulated other comprehensive loss. These amounts are included in the computation of net periodic pension cost. For additional information, see Note 8, Retirement and Benefit Plans. |
Transactions With Related Par_2
Transactions With Related Party (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Related Party Transaction [Line Items] | ||
Revenue from related party | $ 3.3 | $ 4.2 |
Cost of sales from related party | $ 20.3 | $ 22.6 |
LouisianaTimberProcurementCompanyLLC [Member] | ||
Related Party Transaction [Line Items] | ||
Variable interest entity, ownership percentage | 50.00% | |
LouisianaTimberProcurementCompanyLLC [Member] | Packaging Corporation of America (PCA) [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Related Party Transaction [Line Items] | ||
Variable interest entity, ownership percentage | 50.00% |
Segment Information Segment Sal
Segment Information Segment Sales to External Customers by Product Line (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | ||
Segment Reporting [Abstract] | |||
Number of Reportable Segments | segment | 2 | ||
Revenue from External Customer [Line Items] | |||
Sales | $ 1,821,316 | $ 1,170,534 | |
Wood Products and Building Materials Distribution [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | 1,821,300 | 1,170,500 | |
Wood Products [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | $ 186,500 | $ 120,500 | |
Intersegment EWP Sales Volumes As Percentage to Total EWP Sales Volumes | 78.00% | 79.00% | |
Wood Products [Member] | Laminated Veneer Lumber [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | [1] | $ 6,000 | $ 6,100 |
Wood Products [Member] | I-joists [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | [1] | 4,800 | 4,500 |
Wood Products [Member] | Other engineered wood products [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | [1] | 10,600 | 6,400 |
Wood Products [Member] | Plywood and veneer [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | [1] | 122,900 | 63,800 |
Wood Products [Member] | Lumber [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | [1] | 18,900 | 12,300 |
Wood Products [Member] | Byproducts [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | [1] | 17,600 | 20,700 |
Wood Products [Member] | Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | [1] | 5,800 | 6,800 |
Building Materials Distribution [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | 1,634,800 | 1,050,000 | |
Building Materials Distribution [Member] | Commodity product line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | 906,200 | 440,300 | |
Building Materials Distribution [Member] | General line [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | 472,700 | 397,300 | |
Building Materials Distribution [Member] | Engineered wood products [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales | $ 255,900 | $ 212,400 | |
[1] | 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 three months ended March 31, 2021 and 2020, approximately 78% and 79%, respectively, of Wood Products' EWP sales volumes were to our Building Materials Distribution segment. |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | |||
Segment Reporting Information [Line Items] | ||||
Sales | $ 1,821,316 | $ 1,170,534 | ||
Income from operations | 205,261 | 25,547 | ||
Curtailment of I-joist Production at Roxboro, NC Facility | ||||
Segment Reporting Information [Line Items] | ||||
Accelerated depreciation | 15,000 | |||
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | 217,271 | 33,065 | ||
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | (245,796) | (199,524) | |
Corporate, Non-Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | (12,010) | (7,518) | ||
Wood Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 186,500 | 120,500 | ||
Wood Products [Member] | Curtailment of I-joist Production at Roxboro, NC Facility | ||||
Segment Reporting Information [Line Items] | ||||
Accelerated depreciation | 15,000 | |||
Other closure-related costs | 1,700 | |||
Wood Products [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 432,335 | 320,061 | ||
Income from operations | 97,052 | 3,763 | [2] | |
Building Materials Distribution [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,634,800 | 1,050,000 | ||
Building Materials Distribution [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 1,634,777 | 1,049,997 | ||
Income from operations | $ 120,219 | $ 29,302 | ||
[1] | Primarily represents intersegment sales from our Wood Products segment to our Building Materials Distribution segment. | |||
[2] | Wood Products segment operating income for the three months ended March 31, 2020, included $15.0 million of accelerated depreciation and $1.7 million of other closure-related costs due to the permanent curtailment of I-joist production at our Roxboro, North Carolina facility. For more information, see Note 5, Curtailment of Manufacturing Facility. |