10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended	June 30, 2023
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                        to

Commission File Number:  001-35805 

Boise Cascade Company

(Exact name of registrant as specified in its charter)

Delaware	20-1496201
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1111 West Jefferson Street Suite 300

Boise, Idaho 83702-5389

(Address of principal executive offices) (Zip Code)

(208) 384-6161

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value per share	BCC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes x     No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes x     No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer x    Accelerated filer o    Non-accelerated filer o    Smaller reporting company ☐

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).       

Yes ☐  No x

There were 39,589,825 shares of the registrant's common stock, $0.01 par value per share, outstanding on July 28, 2023.

Table of Contents

PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements	1
	Condensed Notes to Unaudited Quarterly Consolidated Financial Statements	8
	1. Nature of Operations and Consolidation	8
	2. Summary of Significant Accounting Policies	8
	3. Income Taxes	12
	4. Net Income Per Common Share	12
	5. Acquisition	13
	6. Goodwill and Intangible Assets	13
	7. Debt	14
	8. Leases	16
	9. Stock-Based Compensation	17
	10. Stockholders' Equity	19
	11. Transactions With Related Party	19
	12. Segment Information	20
	13. Commitments, Legal Proceedings and Contingencies, and Guarantees	21
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	22
	Understanding Our Financial Information	22
	Executive Overview	22
	Factors That Affect Our Operating Results and Trends	23
	Our Operating Results	25
	Liquidity and Capital Resources	29
	Guarantees	31
	Seasonal Influences	31
	Employees	32
	Disclosures of Financial Market Risks	32
	Environmental	32
	Critical Accounting Estimates	32
	New and Recently Adopted Accounting Standards	32
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	32
Item 4.	Controls and Procedures	33
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	34
Item 1A.	Risk Factors	34
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 3.	Defaults Upon Senior Securities	34
Item 4.	Mine Safety Disclosures	35
Item 5.	Other Information	35
Item 6.	Exhibits	35
	Signatures	36

ii

PART I—FINANCIAL INFORMATION

ITEM 1.    FINANCIAL STATEMENTS

Boise Cascade Company

Consolidated Statements of Operations

(unaudited)

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands, except per-share data)
Sales	$	1,815,219	$	2,278,072	$	3,359,548	$	4,604,354
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	1,426,436		1,797,948		2,657,071		3,527,844
Depreciation and amortization	30,722		20,694		61,908		41,237
Selling and distribution expenses	139,205		134,279		267,993		280,930
General and administrative expenses	30,147		27,701		56,610		53,753
Other (income) expense, net	(1,266)		375		(1,611)		(2,113)
	1,625,244		1,980,997		3,041,971		3,901,651
Income from operations	189,975		297,075		317,577		702,703
Foreign currency exchange gain (loss)	320		(499)		247		(367)
Pension expense (excluding service costs)	(41)		(41)		(82)		(212)
Interest expense	(6,339)		(6,317)		(12,700)		(12,571)
Interest income	11,519		1,385		21,204		1,450
Change in fair value of interest rate swaps	333		394		(471)		2,460
	5,792		(5,078)		8,198		(9,240)
Income before income taxes	195,767		291,997		325,775		693,463
Income tax provision	(49,447)		(73,886)		(82,722)		(172,752)
Net income	$	146,320	$	218,111	$	243,053	$	520,711
Weighted average common shares outstanding:
Basic	39,675		39,544		39,634		39,509
Diluted	39,834		39,763		39,818		39,762
Net income per common share:
Basic	$	3.69	$	5.52	$	6.13	$	13.18
Diluted	$	3.67	$	5.49	$	6.10	$	13.10
Dividends declared per common share	$	3.15	$	2.62	$	3.30	$	2.74

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

1

Boise Cascade Company

Consolidated Statements of Comprehensive Income

(unaudited)

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands)
Net income	$	146,320	$	218,111	$	243,053	$	520,711
Other comprehensive income, net of tax
Defined benefit pension plans
Amortization of actuarial loss, net of tax of $2, $5, $4, and $10, respectively	7		16		13		32
Effect of settlements, net of tax of $—, $—, $—, and $32, respectively	—		—		—		98
Other comprehensive income, net of tax	7		16		13		130
Comprehensive income	$	146,327	$	218,127	$	243,066	$	520,841

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

2

Boise Cascade Company

Consolidated Balance Sheets

(unaudited)

	June 30, 2023		December 31, 2022
	(thousands)
ASSETS
Current
Cash and cash equivalents	$	1,080,857	$	998,344
Receivables
Trade, less allowances of $3,212 and $3,264	478,655		297,237
Related parties	174		19
Other	13,244		23,023
Inventories	703,033		697,551
Prepaid expenses and other	22,682		47,878
Total current assets	2,298,645		2,064,052
Property and equipment, net	784,562		770,023
Operating lease right-of-use assets	53,270		55,582
Finance lease right-of-use assets	25,264		26,501
Timber deposits	7,613		7,519
Goodwill	137,958		137,958
Intangible assets, net	152,834		161,433
Deferred income taxes	5,977		6,116
Other assets	10,265		11,330
Total assets	$	3,476,388	$	3,240,514

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

3

Boise Cascade Company

Consolidated Balance Sheets (continued)

(unaudited)

	June 30, 2023		December 31, 2022
	(thousands, except per-share data)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable
Trade	$	415,387	$	269,785
Related parties	1,596		1,019
Accrued liabilities
Compensation and benefits	106,980		142,463
Interest payable	9,961		9,955
Other	133,420		122,606
Total current liabilities	667,344		545,828
Debt
Long-term debt	444,836		444,392
Other
Compensation and benefits	35,731		33,226
Operating lease liabilities, net of current portion	46,784		48,668
Finance lease liabilities, net of current portion	29,073		30,022
Deferred income taxes	65,944		63,454
Other long-term liabilities	18,152		16,949
	195,684		192,319
Commitments and contingent liabilities
Stockholders' equity
Preferred stock, $0.01 par value per share; 50,000 shares authorized, no shares issued and outstanding	—		—
Common stock, $0.01 par value per share; 300,000 shares authorized, 44,983 and 44,827 shares issued, respectively	450		448
Treasury stock, 5,393 and 5,367 shares at cost, respectively	(140,448)		(138,909)
Additional paid-in capital	552,805		551,215
Accumulated other comprehensive loss	(507)		(520)
Retained earnings	1,756,224		1,645,741
Total stockholders' equity	2,168,524		2,057,975
Total liabilities and stockholders' equity	$	3,476,388	$	3,240,514

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

4

Boise Cascade Company

Consolidated Statements of Cash Flows

(unaudited)

	Six Months Ended June 30
	2023		2022
	(thousands)
Cash provided by (used for) operations
Net income	$	243,053	$	520,711
Items in net income not using (providing) cash
Depreciation and amortization, including deferred financing costs and other	63,293		42,240
Stock-based compensation	7,518		5,403
Pension expense	82		212
Deferred income taxes	2,749		19,287
Change in fair value of interest rate swaps	471		(2,460)
Other	(1,798)		(1,987)
Decrease (increase) in working capital
Receivables	(171,794)		(129,993)
Inventories	(5,482)		(142,936)
Prepaid expenses and other	(7,805)		(7,602)
Accounts payable and accrued liabilities	124,910		127,935
Pension contributions	(268)		(794)
Income taxes payable	33,220		4,507
Other	2,069		1,533
Net cash provided by operations	290,218		436,056
Cash provided by (used for) investment
Expenditures for property and equipment	(68,287)		(40,808)
Proceeds from sales of assets and other	1,918		2,864
Net cash used for investment	(66,369)		(37,944)
Cash provided by (used for) financing
Dividends paid on common stock	(132,967)		(109,291)
Tax withholding payments on stock-based awards	(5,926)		(3,930)
Treasury stock purchased	(1,539)		—
Other	(904)		(811)
Net cash used for financing	(141,336)		(114,032)
Net increase in cash and cash equivalents	82,513		284,080
Balance at beginning of the period	998,344		748,907
Balance at end of the period	$	1,080,857	$	1,032,987

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

5

Boise Cascade Company

Consolidated Statements of Stockholders' Equity

(unaudited)

	Common Stock			Treasury Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total
	Shares	Amount		Shares	Amount
	(thousands)
Balance at December 31, 2022	44,827	$	448	5,367	$	(138,909)	$	551,215	$	(520)	$	1,645,741	$	2,057,975
Net income											96,733		96,733
Other comprehensive income									6				6
Common stock issued	156	2											2
Treasury stock purchased				25	(1,482)								(1,482)
Stock-based compensation							3,324						3,324
Common stock dividends ($0.15 per share)											(6,110)		(6,110)
Tax withholding payments on stock-based awards							(5,926)						(5,926)
Other							(2)						(2)
Balance at March 31, 2023	44,983	$	450	5,392	$	(140,391)	$	548,611	$	(514)	$	1,736,364	$	2,144,520
Net income											146,320		146,320
Other comprehensive income									7				7
Treasury stock purchased				1	(57)								(57)
Stock-based compensation							4,194						4,194
Common stock dividends ($3.15 per share)											(126,460)		(126,460)
Balance at June 30, 2023	44,983	$	450	5,393	$	(140,448)	$	552,805	$	(507)	$	1,756,224	$	2,168,524

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

6

Boise Cascade Company

Consolidated Statements of Stockholders' Equity (continued)

(unaudited)

	Common Stock			Treasury Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total
	Shares	Amount		Shares	Amount
	(thousands)
Balance at December 31, 2021	44,698	$	447	5,367	$	(138,909)	$	543,249	$	(1,047)	$	948,879	$	1,352,619
Net income											302,600		302,600
Other comprehensive income									114				114
Common stock issued	117	1											1
Stock-based compensation							2,392						2,392
Common stock dividends ($0.12 per share)											(5,133)		(5,133)
Tax withholding payments on stock-based awards							(3,930)						(3,930)
Proceeds from exercise of stock options							27						27
Other							(1)						(1)
Balance at March 31, 2022	44,815	$	448	5,367	$	(138,909)	$	541,737	$	(933)	$	1,246,346	$	1,648,689
Net income											218,111		218,111
Other comprehensive income									16				16
Stock-based compensation							3,011						3,011
Common stock dividends ($2.62 per share)											(104,842)		(104,842)
Balance at June 30, 2022	44,815	$	448	5,367	$	(138,909)	$	544,748	$	(917)	$	1,359,615	$	1,764,985

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

7

Condensed Notes to Unaudited Quarterly Consolidated Financial Statements

1.    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 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 2022 Form 10-K and the other reports we file with the Securities and Exchange Commission.

2.    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 2022 Form 10-K.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles (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 (ROU) 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.

8

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 BMD segment, costs related to shipping and handling of $60.3 million and $56.0 million for the three months ended June 30, 2023 and 2022, respectively, and $113.8 million and $112.3 million for the six months ended June 30, 2023 and 2022, respectively, are included in "Selling and distribution expenses" in our Consolidated Statements of Operations. In our BMD segment, our activities relate to the purchase and resale of finished products, 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, as well as temporary protection from price increases. 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 June 30, 2023 and December 31, 2022, we had $97.0 million and $92.9 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 material 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 June 30, 2023 and December 31, 2022, we had $8.5 million and $17.8 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 BMD 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.

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

9

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 was 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):

	June 30, 2023		December 31, 2022
	(thousands)
Finished goods and work in process	$	605,967	$	596,328
Logs	47,763		54,921
Other raw materials and supplies	49,303		46,302
	$	703,033	$	697,551

Property and Equipment

Property and equipment consisted of the following asset classes:

	June 30, 2023		December 31, 2022
	(thousands)
Land	$	64,020	$	60,211
Buildings	246,206		231,087
Improvements	71,144		69,832
Mobile equipment, information technology, and office furniture	226,136		210,666
Machinery and equipment	1,005,229		989,338
Construction in progress	48,482		41,899
	1,661,217		1,603,033
Less: accumulated depreciation	(876,655)		(833,010)
	$	784,562	$	770,023

10

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 an interest rate swap. Our cash is recorded at cost, which approximates fair value, and our cash equivalents are money market funds. As of June 30, 2023 and December 31, 2022, we held $1,053.8 million and $954.4 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 June 30, 2023 and December 31, 2022, the book value of our fixed-rate debt for each period was $400.0 million, and the fair value was estimated to be $360.0 million and $348.5 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 Secured Overnight Financing Rate (SOFR) 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 an interest rate swap 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 Swap

We are exposed to interest rate risk arising from fluctuations in variable-rate SOFR on our term loan and when we have loan amounts outstanding on our Revolving Credit Facility. At June 30, 2023, we had $50.0 million of variable-rate debt outstanding based on one-month term SOFR. 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 mitigate the variable-rate cash flow exposure with 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 June 30, 2023, we had one interest rate swap agreement, which we entered into in 2020 and commenced in February 2022. Under the interest rate swap, we receive one-month SOFR plus a spread adjustment of 0.10% 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 this interest rate swap, with a notional principal amount of $50.0 million, are due on a monthly basis at an annual fixed rate of 0.41%, and this swap expires in June 2025.

The interest rate swap agreement was not designated as a cash flow hedge, 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 June 30, 2023 and December 31, 2022, we recorded long-term assets of $4.3 million and $4.8 million, respectively, in "Other assets" on our Consolidated Balance Sheets, representing the fair value of the interest rate swap agreement. The swap was 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 June 30, 2023, receivables from two customers accounted for approximately 19% and 13% of total receivables. At December 31, 2022, receivables from these two customers accounted for approximately 17% and 14% of total receivables. No other customer accounted for 10% or more of total receivables.

11

New and Recently Adopted Accounting Standards

There were no accounting standards recently issued that had or are expected to have a material impact on our consolidated financial statements and associated disclosures.

3.    Income Taxes

For the three and six months ended June 30, 2023, we recorded $49.4 million and $82.7 million, respectively, of income tax expense and had an effective rate of 25.3% and 25.4%, respectively. For the three and six months ended June 30, 2022, we recorded $73.9 million and $172.8 million respectively, of income tax expense and had an effective rate of 25.3% and 24.9%, respectively. For all periods, the primary reason for the difference between the federal and statutory income tax rate of 21% and the effective tax rate was the effect of state taxes.

During the six months ended June 30, 2023 and 2022, cash paid for taxes, net of refunds received, were $46.6 million and $149.1 million, respectively.

4.    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 June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands, except per-share data)
Net income	$	146,320	$	218,111	$	243,053	$	520,711
Weighted average common shares outstanding during the period (for basic calculation)	39,675		39,544		39,634		39,509
Dilutive effect of other potential common shares	159		219		184		253
Weighted average common shares and potential common shares (for diluted calculation)	39,834		39,763		39,818		39,762
Net income per common share - Basic	$	3.69	$	5.52	$	6.13	$	13.18
Net income per common share - Diluted	$	3.67	$	5.49	$	6.10	$	13.10

The computation of the dilutive effect of other potential common shares excludes stock awards representing an insignificant number of shares of common stock and 0.1 million shares of common stock, respectively, in the three months ended June 30, 2023 and 2022, and 0.1 million shares of common stock in both the six months ended June 30, 2023 and 2022. Under the treasury stock method, the inclusion of these stock awards would have been antidilutive.

12

5.    Acquisition

We account for acquisition transactions in accordance with ASC 805, Business Combinations. Accordingly, the results of operations of the acquiree are included in our consolidated financial statements from the acquisition date. The consideration transferred is allocated to the identifiable assets acquired and liabilities assumed based on estimated fair values at the acquisition date, with any excess recorded as goodwill. Transaction-related costs are expensed in the period the costs are incurred. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding adjustment to goodwill.

On July 25, 2022, our wholly-owned subsidiary, Boise Cascade Wood Products, L.L.C., completed the acquisition of 100% of the equity interest in Coastal Plywood, and its plywood manufacturing operations located in Havana, Florida, and Chapman, Alabama, for a purchase price of $515.2 million, including a post-closing adjustment of $1.6 million based upon a working capital target. We finalized the purchase price accounting as of March 31, 2023.

6.    Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price and related costs over the fair value of the net tangible and intangible assets of businesses acquired.

The carrying amount of our goodwill by segment is as follows:

	Building Materials Distribution		Wood Products		Total
	(thousands)
Balance at December 31, 2022 and June 30, 2023	$	11,792	$	126,166	$	137,958

At June 30, 2023 and December 31, 2022, intangible assets represented the values assigned to trade names and trademarks and customer relationships. We maintain trademarks for our manufactured wood products, particularly EWP. Our key registered trademarks are perpetual in duration as long as we continue to timely file all post registration maintenance documents related thereto. These trade names and trademarks have indefinite lives, are not amortized, and have a carrying amount of $8.9 million. In 2022, we acquired a trade name and customer relationships. The acquired trade name has a useful life of one year. The weighted-average useful life for customer relationships from the date of purchase is approximately 10 years. For the three months ended June 30, 2023 and 2022 we recognized $4.3 million and $0.3 million, respectively, of amortization expense for intangible assets. For the six months ended June 30, 2023 and 2022 we recognized $8.6 million and $0.6 million, respectively, of amortization expense for intangible assets.

Intangible assets consisted of the following:

	June 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(thousands)
Trade names and trademarks	$	9,600	$	(642)	$	8,958
Customer relationships	166,050		(22,174)		143,876
	$	175,650	$	(22,816)	$	152,834

	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(thousands)
Trade names and trademarks	$	9,600	$	(292)	$	9,308
Customer relationships	166,050		(13,925)		152,125
	$	175,650	$	(14,217)	$	161,433

13

7.    Debt

Long-term debt consisted of the following:

	June 30, 2023		December 31, 2022
	(thousands)
Asset-based revolving credit facility due 2027	$	—	$	—
Asset-based credit facility term loan due 2027	50,000		50,000
4.875% senior notes due 2030	400,000		400,000
Deferred financing costs	(5,164)		(5,608)
Long-term debt	$	444,836	$	444,392

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, (the Amended Agreement) with Wells Fargo Capital Finance, LLC, as administrative agent, and the banks named therein as lenders. The Amended Agreement includes a $400 million senior secured asset-based revolving credit facility (Revolving Credit Facility) and a $50.0 million term loan (ABL Term Loan) maturing on the earlier of (a) September 9, 2027 and (b) 90 days prior to the maturity of our $400 million of 4.875% senior notes due July 1, 2030 (or the maturity date of any permitted refinancing indebtedness or permitted upsized refinancing indebtedness in respect thereof). 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 the greater of (a) 10% of the Line Cap (as defined in the Amended Agreement) and (b) $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 June 30, 2023 was $395.9 million.

The Amended Agreement permits us to pay dividends only if at the time of payment (a) no default has occurred or is continuing (or would result from such payment) under the Amended Agreement, and (b) either (i) pro forma Excess Availability (as defined in the Amended Agreement) is equal to or exceeds the greater of (x) 20% of the Line Cap and (y) $75 million or (ii) (x) pro forma Excess Availability is equal to or exceeds the greater of (1) 15% of Line Cap and (2) $55 million 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 Daily Simple SOFR, Term SOFR, 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 SOFR 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. Both SOFR options include an additional credit spread adjustment of 0.10%. Letters of credit are subject to a fronting fee payable to the issuing bank and a fee payable to the lenders equal to the Term SOFR margin rate. In addition, we are required to pay an unused commitment fee at a rate of 0.20% per annum of the average unused portion of the lending commitments.

14

At both June 30, 2023 and December 31, 2022, we had no borrowings outstanding under the Revolving Credit Facility and $4.1 million and $3.8 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 Daily Simple SOFR, Term SOFR, 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 SOFR 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). Both SOFR options include an additional credit spread adjustment of 0.10%. During the six months ended June 30, 2023, the average interest rate on the ABL Term Loan was approximately 6.58%.

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 5.6% during the six months ended June 30, 2023.

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 Swap

For information on interest rate swap, see Interest Rate Risk and Interest Rate Swap of Note 2, Summary of Significant Accounting Policies.

Cash Paid for Interest

For the six months ended June 30, 2023 and 2022, cash payments for interest were $11.1 million and $11.3 million, respectively.

15

8.    Leases

Lease Costs

The components of lease expense were as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands)
Operating lease cost	$	3,264	$	3,585	$	6,581	$	7,146
Finance lease cost
Amortization of right-of-use assets	619		621		1,237		1,246
Interest on lease liabilities	560		587		1,120		1,175
Variable lease cost	1,377		1,087		2,762		2,122
Short-term lease cost	1,478		1,340		3,029		2,652
Sublease income	(111)		(112)		(164)		(224)
Total lease cost	$	7,187	$	7,108	$	14,565	$	14,117

Other Information

Supplemental cash flow information related to leases was as follows:

	Six Months Ended June 30
	2023		2022
	(thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6,706	$	6,932
Operating cash flows from finance leases	1,118		1,173
Financing cash flows from finance leases	904		838
Right-of-use assets obtained in exchange for lease obligations
Operating leases	3,578		4,997
Finance leases	—		—

16

Other information related to leases was as follows:

	June 30, 2023		December 31, 2022
Weighted-average remaining lease term (years)
Operating leases	7		7
Finance leases	14		14
Weighted-average discount rate
Operating leases	6.1	%	6.0	%
Finance leases	7.6	%	7.6	%

As of June 30, 2023, our minimum lease payment requirements for noncancelable operating and finance leases are as follows:

	Operating Leases		Finance Leases
	(thousands)
Remainder of 2023	$	6,697	$	2,035
2024	12,472		4,052
2025	10,844		3,735
2026	7,673		3,581
2027	6,970		3,649
Thereafter	26,644		33,086
Total future minimum lease payments	71,300		50,138
Less: interest	(14,599)		(19,187)
Total lease obligations	56,701		30,951
Less: current obligations	(9,917)		(1,878)
Long-term lease obligations	$	46,784	$	29,073

9.    Stock-Based Compensation

In first quarter 2023 and 2022, 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 six months ended June 30, 2023, we granted 93,282 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% to 200% of the target amount, depending upon Boise Cascade's 2023 return on invested capital (ROIC), as approved by our compensation committee in accordance with the related grant agreement. We define ROIC as net operating profit after taxes (NOPAT) divided by average invested capital (based on a rolling thirteen-month average). We define NOPAT as net income plus after-tax financing expense. Invested capital is defined as total assets plus capitalized lease expense, less cash, cash equivalents, and current liabilities, excluding short-term debt. 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 2023 EBITDA, defined as income before interest (interest expense and interest income), income taxes, and depreciation and amortization, as approved by executive management, determined in accordance with the related grant agreement. Because the PSUs 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 six months ended June 30, 2022, we granted 66,180 PSUs to our officers and other employees, subject to performance and service conditions. During the 2022 performance period, officers and other employees earned 152% and 200%, respectively, of the target based on Boise Cascade's 2022 ROIC and EBITDA, as applicable, determined by our compensation committee and executive management, as applicable, in accordance with the related grant agreements.

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.

17

During the six months ended June 30, 2023 and 2022, we granted an aggregate of 115,252 and 86,164 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 in a single installment after 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 six months ended June 30, 2023 and 2022, the total fair value of PSUs and RSUs vested was $16.8 million and $12.0 million, respectively.

The following summarizes the activity of our PSUs and RSUs awarded under our incentive plan for the six months ended June 30, 2023:

	PSUs			RSUs
	Number of shares	Weighted Average Grant-Date Fair Value		Number of shares	Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2022	317,854	$	51.46	155,339	$	65.17
Granted	93,282	69.33		115,252	69.34
Performance condition adjustment (a)	39,873	79.80		—	—
Vested	(154,794)	40.61		(87,632)	60.64
Forfeited	(5,399)	68.55		(3,200)	70.32
Outstanding, June 30, 2023	290,816	$	66.54	179,759	$	69.96

_______________________________

(a)    Represents additional PSUs granted during the six months ended June 30, 2023, related to above-target achievement of the 2022 performance condition 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 compensation expense for stock awards with only service conditions on a straight-line basis over the requisite service period. Most of our stock-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 June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands)
PSUs	$	2,577	$	1,695	$	4,391	$	3,001
RSUs	1,617		1,317		3,127		2,402
Total	$	4,194	$	3,012	$	7,518	$	5,403

The related tax benefit for the six months ended June 30, 2023 and 2022, was $1.9 million and $1.3 million respectively. As of June 30, 2023, total unrecognized compensation expense related to nonvested share-based compensation arrangements was $25.8 million. This expense is expected to be recognized over a weighted-average period of 2.1 years.

18

10.    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 six months ended June 30, 2023 and 2022, see "Common stock dividends" on our Consolidated Statements of Stockholders' Equity.

On July 27, 2023, our board of directors declared a quarterly dividend of $0.20 per share on our common stock, payable on September 15, 2023, to stockholders of record on September 1, 2023. 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 7, 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, material cash requirements, 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.

Stock Repurchase

On July 28, 2022, our board of directors authorized the repurchase of an additional 1.5 million shares of our common stock. This increase was in addition to the remaining authorized shares under our prior common stock repurchase program that was authorized on February 25, 2015 (the Program). Share repurchases may be made on an opportunistic basis, through open market transactions, privately negotiated transactions, or by other means in accordance with applicable federal securities laws. We are not obligated to purchase any shares and there is no set date that the Program will expire. Our board of directors may increase or decrease the number of shares under the Program or terminate the Program in its discretion at any time. During the six months ended June 30, 2023, we repurchased 25,678 shares under the Program at a cost of $1.5 million, or an average of $59.91 per share. The shares were purchased with cash on hand and are recorded as "Treasury stock" on our Consolidated Balance Sheet. As of June 30, 2023, there were 1,971,311 shares of common stock that may yet be purchased under the Program.

11.    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 $3.1 million and $3.5 million, respectively, during the three months ended June 30, 2023 and 2022, and $6.1 million and $7.2 million, respectively, during the six months ended June 30, 2023 and 2022. These sales are recorded in "Sales" in our Consolidated Statements of Operations.

Costs and Expenses

Related-party wood fiber purchases from LTP were $21.1 million and $23.5 million, respectively, during the three months ended June 30, 2023 and 2022, and $41.2 million and $44.3 million, respectively, during the six months ended June 30, 2023 and 2022. These costs are recorded in "Materials, labor, and other operating expenses (excluding depreciation)" in our Consolidated Statements of Operations.

19

12.    Segment Information

We operate our business using two reportable segments: Wood Products and BMD. We measure and evaluate our reportable segments based on net sales and segment operating income (loss). Accordingly, our chief operating decision maker reviews the performance of the company and allocates resources based primarily on net sales and segment operating income (loss) for our business segments. 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 16, Segment Information, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2022 Form 10-K.    

    Wood Products and BMD segment sales to external customers, including related parties, by product line, are as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(millions)
Wood Products (a)
LVL (b)	$	14.2	$	(9.5)	$	21.6	$	(7.8)
I-joists (b)	9.3		(12.5)		14.0		(14.7)
Other engineered wood products (b)	9.8		13.1		17.2		24.9
Plywood and veneer	93.8		112.1		185.1		273.3
Lumber	23.7		20.9		47.2		38.6
Byproducts	23.1		19.3		47.4		38.3
Other	4.8		3.5		11.3		8.7
	178.7		146.9		343.9		361.3
Building Materials Distribution
Commodity	613.7		956.3		1,161.2		2,058.1
General line	647.5		700.5		1,181.0		1,315.8
Engineered wood products	375.4		474.4		673.5		869.1
	1,636.5		2,131.2		3,015.7		4,243.0
	$	1,815.2	$	2,278.1	$	3,359.5	$	4,604.4

 ___________________________________  

(a)    Amounts represent sales to external customers. Sales are calculated after intersegment sales eliminations to our BMD segment.

(b)    Sales of EWP to external customers are net of the cost of all EWP rebates and sales allowances provided at various stages of the supply chain (including distributors, dealers, and homebuilders). For both the six months ended June 30, 2023 and 2022, approximately 78% of Wood Products' EWP sales volumes were to our BMD segment.

20

An analysis of our operations by segment is as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands)
Net sales by segment
Wood Products	$	530,273	$	536,030	$	967,701	$	1,094,974
Building Materials Distribution	1,636,538		2,131,200		3,015,780		4,243,033
Intersegment eliminations (a)	(351,592)		(389,158)		(623,933)		(733,653)
Total net sales	$	1,815,219	$	2,278,072	$	3,359,548	$	4,604,354
Segment operating income
Wood Products	$	104,035	$	154,101	$	173,430	$	344,217
Building Materials Distribution	98,550		154,308		168,235		380,200
Total segment operating income	202,585		308,409		341,665		724,417
Unallocated corporate costs	(12,610)		(11,334)		(24,088)		(21,714)
Income from operations	$	189,975	$	297,075	$	317,577	$	702,703

___________________________________ 

(a)    Primarily represents intersegment sales from our Wood Products segment to our BMD segment.

13.    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 17, Commitments, Legal Proceedings and Contingencies, and Guarantees, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2022 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 June 30, 2023, there have been no material changes to the above commitments disclosed in the 2022 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 do not believe that we are party to any legal action that could reasonably be expected to have, individually or in the aggregate, a material adverse effect on our financial position, results of operations, or cash flows.

Guarantees

We provide guarantees, indemnifications, and assurances to others. Note 17, Commitments, Legal Proceedings and Contingencies, and Guarantees, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2022 Form 10-K describes the nature of our guarantees, including the approximate terms of the guarantees, how the guarantees arose, the events or circumstances that would require us to perform under the guarantees, and the maximum potential undiscounted amounts of future payments we could be required to make. As of June 30, 2023, there have been no material changes to the guarantees disclosed in the 2022 Form 10-K.

21

ITEM 2.    MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 

Understanding Our Financial Information

This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our consolidated financial statements and related notes in "Item 1. Financial Statements" of this Form 10-Q, as well as our 2022 Form 10-K. The following discussion includes statements regarding our expectations with respect to our future performance, liquidity, and capital resources. Such statements, along with any other non-historical statements in the discussion, are forward-looking. These forward-looking statements include, without limitation, any statement that may predict, indicate, or imply future results, performance, or achievements and may contain the words "may," "will," "expect," "believe," "should," "plan," "anticipate," and other similar expressions. All of these forward-looking statements are based on estimates and assumptions made by our management that, although believed by us to be reasonable, are inherently uncertain. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, the risks and uncertainties described in "Item 1A. Risk Factors" in our 2022 Form 10-K, as well as those factors listed in other documents we file with the Securities and Exchange Commission (the SEC). We do not assume an obligation to update any forward-looking statement. Our future actual results may differ materially from those contained in or implied by any of the forward-looking statements in this Form 10-Q.

Background

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. Boise Cascade is a large, vertically-integrated wood products manufacturer and building materials distributor. We have two reportable segments: (i) Wood Products, which primarily manufactures engineered wood products (EWP) and plywood; and (ii) Building Materials Distribution (BMD), which is a wholesale distributor of building materials. Our products are used in the construction of new residential housing, including single-family, multi-family, and manufactured homes, the repair-and-remodeling of existing housing, the construction of light industrial and commercial buildings, and industrial applications. For more information, see Note 12, Segment Information, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Item 1. Financial Statements" of this Form 10-Q.

Executive Overview

We recorded income from operations of $190.0 million during the three months ended June 30, 2023, compared with income from operations of $297.1 million during the three months ended June 30, 2022. In our Wood Products segment, income decreased $50.1 million to $104.0 million for the three months ended June 30, 2023, from $154.1 million for the three months ended June 30, 2022, due primarily to lower plywood sales prices and an increase in depreciation and amortization expense due to the acquisition of two plywood facilities located in Havana, Florida, and Chapman, Alabama, on July 25, 2022 (the Acquisition). These decreases were offset partially by higher plywood sales volumes, higher EWP sales prices, as well as lower wood fiber costs. In our BMD segment, income decreased $55.7 million to $98.6 million for the three months ended June 30, 2023, from $154.3 million for the three months ended June 30, 2022, driven by a gross margin decrease of $49.8 million, resulting from lower margins on EWP and general line products, offset partially by margin improvements on commodity products. In addition, selling and distribution expenses increased $3.9 million. These changes are discussed further in "Our Operating Results" below.

We ended second quarter 2023 with $1,080.9 million of cash and cash equivalents and $395.9 million of undrawn committed bank line availability, for total available liquidity of $1,476.8 million. We had $444.8 million of outstanding debt at June 30, 2023. We generated $82.5 million of cash during the six months ended June 30, 2023, as cash provided by operations was offset partially by capital spending, dividends paid on our common stock, and tax withholding payments on stock-based awards. A further description of our cash sources and uses for the six-month comparative periods are discussed in "Liquidity and Capital Resources" below.

Demand for the products we manufacture, as well as the products we purchase and distribute, is correlated with new residential construction, residential repair-and-remodeling activity and light commercial construction. U.S. housing starts in June 2023 were approximately 1.4 million on a seasonally adjusted annual rate basis, as reported by the U.S. Census Bureau. However, home affordability remains a challenge for consumers, and the Federal Reserve's ongoing actions in response to inflationary data and what impacts these actions have on future mortgage rates and the broader economy will influence the near-term demand environment. As such, the outlook for the back half of 2023 remains uncertain and is reflected in various industry

22

forecasts for 2023 U.S. housing starts that generally range from 1.3 million to 1.4 million units, compared with actual housing starts of 1.55 million in 2022, as reported by the U.S. Census Bureau. Regarding home improvement spending, the age of U.S. housing stock and elevated levels of homeowner equity have provided a favorable backdrop for repair-and-remodel spending. However, industry forecasts project continued moderation of year-over-year growth in renovation spending, and economic uncertainty may also negatively impact homeowners' further investment in their residences.

As a manufacturer of certain commodity products, we have sales and profitability exposure to declines in commodity product prices and rising input costs. Our distribution business purchases and resells a broad mix of commodity products with periods of increasing prices providing the opportunity for higher sales and increased margins, while declining price environments expose us to declines in sales and profitability. Future commodity product pricing and commodity input costs may be volatile in response to economic uncertainties, industry operating rates, transportation constraints or disruptions, net import and export activity, inventory levels in various distribution channels, and seasonal demand patterns. In addition, EWP volumes will continue to be influenced by demand for new residential construction, particularly single-family housing starts, and we expect modest EWP price erosion in the third quarter.

Factors That Affect Our Operating Results and Trends

    Our results of operations and financial performance are influenced by a variety of factors, including the following:

•the commodity nature of a portion of our products and their price movements, which are driven largely by industry capacity and operating rates, industry cycles that affect supply and demand, and net import and export activity;

•general economic conditions, including but not limited to housing starts, repair-and-remodeling activity, light commercial construction, inventory levels of new and existing homes for sale, foreclosure rates, interest rates, inflation, unemployment rates, household formation rates, prospective home buyers' access to and cost of financing, and housing affordability, that ultimately affect demand for our products;

•the highly competitive nature of our industry;

•declines in demand for our products due to competing technologies or materials, as well as changes in building code provisions;

•disruptions to information systems used to process and store customer, employee, and vendor information, as well as the technology that manages our operations and other business processes;

•material disruptions and/or major equipment failure at our manufacturing facilities;

•labor disruptions, shortages of skilled and technical labor, or increased labor costs;

•the need to successfully formulate and implement succession plans for key members of our management team;

•product shortages, loss of key suppliers, and our dependence on third-party suppliers and manufacturers;

•the cost and availability of third-party transportation services used to deliver the goods we manufacture and distribute, as well as our raw materials;

•cost and availability of raw materials, including wood fiber and glues and resins;

•our ability to successfully and efficiently complete and integrate acquisitions;

•the concentration of our sales among a relatively small group of customers, as well as the financial condition and creditworthiness of our customers;

•impairment of our long-lived assets, goodwill, and/or intangible assets;

•substantial ongoing capital investment costs, including those associated with acquisitions, and the difficulty in offsetting fixed costs related to those investments;

23

•our indebtedness, including the possibility that we may not generate sufficient cash flows from operations or that future borrowings may not be available in amounts sufficient to fulfill our debt obligations and fund other liquidity needs;

•restrictive covenants contained in our debt agreements;

•compliance with data privacy and security laws and regulations;

•the impacts of climate change and related legislative and regulatory responses intended to reduce climate change;

•cost of compliance with government regulations, in particular, environmental regulations;

•the enactment of tax reform legislation;

•exposure to product liability, product warranty, casualty, construction defect, and other claims;

•fluctuations in the market for our equity; and

•the other factors described in "Item 1A. Risk Factors" in our 2022 Form 10-K.

24

Our Operating Results

The following tables set forth our operating results in dollars and as a percentage of sales for the three and six months ended June 30, 2023 and 2022:

	Three Months Ended June 30						Six Months Ended June 30
	2023			2022			2023			2022
	(millions)
Sales	$	1,815.2		$	2,278.1		$	3,359.5		$	4,604.4
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	1,426.4			1,797.9			2,657.1			3,527.8
Depreciation and amortization	30.7			20.7			61.9			41.2
Selling and distribution expenses	139.2			134.3			268.0			280.9
General and administrative expenses	30.1			27.7			56.6			53.8
Other (income) expense, net	(1.3)			0.4			(1.6)			(2.1)
	1,625.2			1,981.0			3,042.0			3,901.7
Income from operations	$	190.0		$	297.1		$	317.6		$	702.7
	(percentage of sales)
Sales	100.0		%	100.0		%	100.0		%	100.0		%
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	78.6		%	78.9		%	79.1		%	76.6		%
Depreciation and amortization	1.7			0.9			1.8			0.9
Selling and distribution expenses	7.7			5.9			8.0			6.1
General and administrative expenses	1.7			1.2			1.7			1.2
Other (income) expense, net	(0.1)			—			—			—
	89.5		%	87.0		%	90.5		%	84.7		%
Income from operations	10.5		%	13.0		%	9.5		%	15.3		%

25

Sales Volumes and Prices

Set forth below are historical U.S. housing starts data, segment sales volumes and average net selling prices for the principal products sold by our Wood Products segment, and sales mix and gross margin information for our BMD segment for the three and six months ended June 30, 2023 and 2022.

	Three Months Ended June 30						Six Months Ended June 30
	2023			2022			2023			2022
	(thousands)
U.S. Housing Starts (a)
Single-family	261.4			303.3			449.7			570.1
Multi-family	137.6			146.5			264.1			269.4
	399.0			449.8			713.8			839.5
	(thousands)
Segment Sales
Wood Products	$	530,273		$	536,030		$	967,701		$	1,094,974
Building Materials Distribution	1,636,538			2,131,200			3,015,780			4,243,033
Intersegment eliminations	(351,592)			(389,158)			(623,933)			(733,653)
Total sales	$	1,815,219		$	2,278,072		$	3,359,548		$	4,604,354
Wood Products	(millions)
Sales Volumes
Laminated veneer lumber (LVL) (cubic feet)	4.7			4.6			8.3			9.2
I-joists (equivalent lineal feet)	63			69			102			135
Plywood (sq. ft.) (3/8" basis)	440			281			846			598
Wood Products	(dollars per unit)
Average Net Selling Prices
Laminated veneer lumber (LVL) (cubic foot)	$	30.14		$	28.47		$	30.59		$	27.43
I-joists (1,000 equivalent lineal feet)	2,088			2,066			2,118			1,974
Plywood (1,000 sq. ft.) (3/8" basis)	365			569			366			633
	(percentage of Building Materials Distribution sales)
Building Materials Distribution
Product Line Sales
Commodity	37.5		%	44.9		%	38.5		%	48.5		%
General line	39.6		%	32.9		%	39.2		%	31.0		%
Engineered wood products	22.9		%	22.2		%	22.3		%	20.5		%
Gross margin percentage (b)	15.0		%	13.9		%	14.9		%	15.9		%

_______________________________________ 

(a)    Actual U.S. housing starts data reported by the U.S. Census Bureau.

(b)    We define gross margin as "Sales" less "Materials, labor, and other operating expenses (excluding depreciation)." Substantially all costs included in "Materials, labor, and other operating expenses (excluding depreciation)" for our BMD segment are for inventory purchased for resale. Gross margin percentage is gross margin as a percentage of segment sales.

26

Sales

For the three months ended June 30, 2023, total sales decreased $462.9 million, or 20%, to $1,815.2 million from $2,278.1 million during the three months ended June 30, 2022. For the six months ended June 30, 2023, total sales decreased $1,244.9 million, or 27%, to $3,359.5 million from $4,604.4 million for the same period in the prior year. As described below, the decrease in sales was driven by the changes in sales prices and volumes for the products we manufacture and distribute with single-family residential construction activity being the key demand driver of our sales. In second quarter 2023, total U.S. housing starts and single-family housing starts decreased 11% and 14%, respectively, compared with the same period in 2022. On a year-to-date basis through June 2023, total housing starts decreased 15%, driven by a decrease in single-family housing starts of 21% compared with the same period in 2022. Average composite lumber and average composite panel prices for the three months ended June 30, 2023 were 50% and 40% lower, respectively, than in the same period in the prior year, as reflected by Random Lengths composite lumber and panel pricing. For the six months ended June 30, 2023, average composite lumber and average composite panel prices were 60% and 51% lower, respectively, compared with the same period in the prior year.

Wood Products.  Sales, including sales to our BMD segment, decreased $5.7 million, or 1%, to $530.3 million for the three months ended June 30, 2023, from $536.0 million for the three months ended June 30, 2022. The decrease in sales was driven by lower plywood sales prices of 36%, resulting in decreased sales of $89.8 million. In addition, lower sales volumes of I-joists of 9% resulted in decreased sales of $13.5 million. The decrease in I-joists sales volumes was due to a decline in housing starts, as well as the availability of product substitutes and construction methods in certain geographies that reduce the wood floor opportunity. These decreases were offset partially by higher sales volumes for plywood of 57%, resulting in increased sales of $90.7 million. Plywood sales volumes increased during the quarter as we shifted a higher proportion of our internally produced veneer into plywood production, given the change in demand for EWP. Plywood sales volumes increased from the prior year quarter due to the Acquisition, as well as downtime taken in 2022 to replace an existing dryer at our Chester, South Carolina, plywood facility. In addition, higher sales prices for LVL and I-joists (collectively referred to as EWP) of 6% and 1%, respectively, resulted in increased sales of $7.8 million and $1.4 million, respectively. The increase in EWP pricing was due to realizations of previously announced price increases and the expiration of certain temporary price protection arrangements. Higher sales volumes for LVL of 2% resulted in increased sales of $2.7 million.

For the six months ended June 30, 2023, sales, including sales to our BMD segment, decreased $127.3 million, or 12% to $967.7 million from $1,095.0 million for the same period in the prior year. The decrease in sales was driven by lower plywood sales prices of 42%, resulting in decreased sales of $225.6 million. In addition, lower sales volumes of I-joists and LVL (collectively referred to as EWP) of 25% and 10%, respectively, resulted in decreased sales of $65.5 million and $24.8 million, respectively. EWP sales volumes decreased due to a decline in housing starts. I-joist volumes were also impacted by the availability of product substitutes and construction methods in certain geographies that reduce the wood floor opportunity. These decreases were offset partially by higher sales volumes for plywood of 42%, resulting in increased sales of $157.1 million. Plywood sales volumes increased from the prior year as we shifted a higher proportion of our internally produced veneer into plywood production, given the change in demand for EWP. The Acquisition also increased plywood sales volumes during 2023. In addition, higher sales prices for LVL and I-joists of 12% and 7%, respectively, resulted in increased sales of $26.4 million and $14.7 million, respectively. The increase in EWP pricing was due to realizations of previously announced price increases and the expiration of certain temporary price protection arrangements.

Building Materials Distribution.  Sales decreased $494.7 million, or 23%, to $1,636.5 million for the three months ended June 30, 2023, from $2,131.2 million for the three months ended June 30, 2022. Compared with the same quarter in the prior year, the overall decrease in sales was driven by sales price and sales volume decreases of 22% and 1%, respectively. By product line, commodity sales decreased 36%, or $342.7 million; general line product sales decreased 8%, or $53.0 million; and EWP sales (substantially all of which are sourced through our Wood Products segment) decreased 21%, or $99.0 million.

During the six months ended June 30, 2023, sales decreased $1,227.2 million, or 29%, to $3,015.8 million from $4,243.0 million for the same period in the prior year. The overall decrease in sales was driven by sales price and sales volume decreases of 21% and 8%, respectively. By product line, commodity sales decreased 44%, or $897.0 million; general line product sales decreased 10%, or $134.6 million; and sales of EWP (substantially all of which are sourced through our Wood Products segment) decreased 23%, or $195.6 million.

Costs and Expenses

Materials, labor, and other operating expenses (excluding depreciation) decreased $371.5 million, or 21%, to $1,426.4 million for the three months ended June 30, 2023, compared with $1,797.9 million during the same period in the prior year. In our Wood Products segment, materials, labor, and other operating expenses increased due to higher labor and other manufacturing costs, as well as the Acquisition. These increases were offset partially by lower per-unit costs of OSB (used in

27

the manufacture of I-joists) and logs of approximately 18% and 6%, respectively, compared with second quarter 2022. Materials, labor, and other operating expenses as a percentage of sales (MLO rate) in our Wood Products segment increased by 750 basis points. The increase in the MLO rate was primarily the result of lower plywood sales prices, resulting in decreased leveraging of labor and other manufacturing costs. In BMD, the decrease in materials, labor, and other operating expenses was driven by lower purchased materials costs primarily as a result of lower commodity prices compared with second quarter 2022. The BMD segment MLO rate decreased 110 basis points compared with second quarter 2022, driven primarily by improved margin percentages on commodity product sales as commodity prices were generally stable during 2023 compared with a declining price environment during 2022. In our BMD segment, periods of increasing prices provide the opportunity for higher sales and increased margins, while declining price environments generally result in declines in sales and profitability.

For the six months ended June 30, 2023, materials, labor, and other operating expenses (excluding depreciation) decreased $870.7 million or 25%, to $2,657.1 million, compared with $3,527.8 million in the same period in the prior year. In our Wood Products segment, materials, labor, and other operating expenses increased due to higher labor and other manufacturing costs, as well as the Acquisition. These increases were offset partially by lower per-unit costs of OSB (used in the manufacture of I-joists) and logs of approximately 19% and 2%, respectively, compared with the first six months of 2022. The MLO rate in our Wood Products segment increased by 1,040 basis points, which was primarily due to lower plywood sales prices, resulting in decreased leveraging of labor and other manufacturing costs. In BMD, the decrease in materials, labor, and other operating expenses was driven by lower purchased materials costs as a result of a decrease in product prices and lower sales volumes, compared with the first six months of 2022. However, the BMD segment MLO rate increased 100 basis points due to lower margin percentages on commodity products and EWP compared with the first six months of 2022.

Depreciation and amortization expenses increased $10.0 million, or 48%, to $30.7 million for the three months ended June 30, 2023, compared with $20.7 million during the same period in the prior year. For the six months ended June 30, 2023, these expenses increased $20.7 million, or 50%, to $61.9 million, compared with $41.2 million in the same period in the prior year. The increase in both periods was due primarily to the Acquisition on July 25, 2022, and other capital expenditures.

Selling and distribution expenses increased $4.9 million, or 4%, to $139.2 million for the three months ended June 30, 2023, compared with $134.3 million during the same period in the prior year, primarily due to higher base salaries and incentive compensation expenses of $6.3 million, offset partially by a decrease in sales commissions of $3.0 million. In addition, shipping and handling costs increased $1.8 million during the three months ended June 30, 2023 compared with the same period in the prior year. For the six months ended June 30, 2023, selling and distribution expenses decreased $12.9 million, or 5%, to $268.0 million, compared with $280.9 million during the same period in 2022, primarily as a result of lower sales commissions and incentive compensation expenses of $21.1 million, offset partially by increased shipping and handling costs of $2.8 million and higher employee-related expenses of $2.1 million. In addition, discretionary expenses related to travel and entertainment and advertising increased $1.4 million.

General and administrative expenses increased $2.4 million, or 9%, to $30.1 million for the three months ended June 30, 2023, compared with $27.7 million for the same period in the prior year, primarily due to an increase in employee-related expenses, most of which relates to incentive compensation. This increase was offset partially by a decrease in professional fees during the three months ended June 30, 2023 compared with the same period in the prior year. For the six months ended June 30, 2023, general and administrative expenses increased $2.8 million, or 5%, to $56.6 million, compared with $53.8 million during the same period in 2022. The increase was primarily the result of higher employee-related expenses and professional fees.

For the three months ended June 30, 2023, other (income) expense, net, was $1.3 million of income. For the three months ended June 30, 2022, other (income) expense was insignificant. For the six months ended June 30, 2023 and 2022, other (income) expense, net, was $1.6 million and $2.1 million of income, respectively. Other income for the three months ended June 30, 2023, as well as for the six months ended June 30, 2023 and 2022, was primarily comprised of earn-out income related to a previous asset sale in our Wood Products segment.

Income From Operations

Income from operations decreased $107.1 million to $190.0 million for the three months ended June 30, 2023, compared with $297.1 million for the three months ended June 30, 2022. Income from operations decreased $385.1 million to $317.6 million for the six months ended June 30, 2023, compared with $702.7 million for the six months ended June 30, 2022.

Wood Products.  Segment income decreased $50.1 million to $104.0 million for the three months ended June 30, 2023, compared with $154.1 million for the three months ended June 30, 2022. The decrease in segment income was due primarily to lower plywood sales prices. In addition, segment income was negatively impacted by an increase in depreciation and

28

amortization expense related to the Acquisition. These decreases in segment income were offset partially by higher plywood sales volumes and higher EWP sales prices, as well as lower wood fiber costs.

For the six months ended June 30, 2023, segment income decreased $170.8 million to $173.4 million from $344.2 million for the six months ended June 30, 2022. The decrease in segment income was due primarily to lower plywood sales prices and lower EWP sales volumes. In addition, segment income was negatively impacted by an increase in depreciation and amortization expense related to the Acquisition. These decreases in segment income were offset partially by higher EWP sales prices and higher plywood sales volumes, as well as lower wood fiber costs.

Building Materials Distribution.  Segment income decreased $55.7 million to $98.6 million for the three months ended June 30, 2023, from $154.3 million for the three months ended June 30, 2022. The decline in segment income was driven by a gross margin decrease of $49.8 million, resulting from lower margins on EWP and general line products, offset partially by margin improvements on commodity products. In addition, selling and distribution expenses increased $3.9 million.

For the six months ended June 30, 2023, segment income decreased $212.0 million to $168.2 million from $380.2 million for the six months ended June 30, 2022. The decline in segment income was driven by a gross margin decrease of $227.2 million, resulting primarily from gross margin declines on commodity and EWP products and lower sales volumes across all product lines, offset partially by decreased selling and distribution expenses of $16.5 million.

Corporate.  Unallocated corporate expenses increased $1.3 million to $12.6 million for the three months ended June 30, 2023, from $11.3 million for the same period in the prior year. The increase was primarily due to higher employee-related expenses, most of which relate to incentive compensation.

For the six months ended June 30, 2023, unallocated corporate expenses increased $2.4 million to $24.1 million from $21.7 million for the six months ended June 30, 2022. The increase was primarily due to higher employee-related expenses.

Other

Interest Income. Interest income increased $10.1 million to $11.5 million for the three months ended June 30, 2023, from $1.4 million for the three months ended June 30, 2022. For the six months ended June 30, 2023, interest income increased $19.7 million to $21.2 million from $1.5 million for the six months ended June 30, 2022. The increase in both periods was due primarily to higher interest rates on cash equivalents and increases in the average balances of cash equivalents.

Change in fair value of interest rate swaps. For information related to our interest rate swap, see the discussion under "Interest Rate Risk and Interest Rate Swap" of Note 2, Summary of Significant Accounting Policies, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Item 1. Financial Statements" of this Form 10-Q.

Income Tax Provision

For the three and six months ended June 30, 2023, we recorded $49.4 million and $82.7 million, respectively, of income tax expense and had an effective rate of 25.3% and 25.4%, respectively. For the three and six months ended June 30, 2022, we recorded $73.9 million and $172.8 million, respectively, of income tax expense and had an effective rate of 25.3% and 24.9%, respectively. For all periods, the primary reason for the difference between the federal and statutory income tax rate of 21% and the effective tax rate was the effect of state taxes.

Liquidity and Capital Resources

We ended second quarter 2023 with $1,080.9 million of cash and cash equivalents and $444.8 million of debt. At June 30, 2023, we had $1,476.8 million of available liquidity (cash and cash equivalents and undrawn committed bank line availability). We generated $82.5 million of cash during the six months ended June 30, 2023, as cash provided by operations was offset partially by capital spending, dividends paid on our common stock, and tax withholding payments on stock-based awards. Further descriptions of our cash sources and uses for the six-month comparative periods are noted below.

We believe that our cash flows from operations, combined with our current cash levels and available borrowing capacity, will be adequate to fund debt service requirements and provide cash, as required, to support our ongoing operations, capital expenditures, lease obligations, working capital, income tax payments, and to pay cash dividends to holders of our common stock over the next 12 months. We expect to fund our seasonal and intra-month working capital requirements in the remainder of 2023 from cash on hand and, if necessary, borrowings under our revolving credit facility.

29

Sources and Uses of Cash

We generate cash primarily from sales of our products, as well as short-term and long-term borrowings. Our primary uses of cash are for expenses related to the manufacture and distribution of building products, including inventory purchased for resale, wood fiber, labor, energy, and glues and resins. In addition to paying for ongoing operating costs, we use cash to invest in our business, service our debt and lease obligations, and return cash to our shareholders through dividends or common stock repurchases. Below is a discussion of our sources and uses of cash for operating activities, investing activities, and financing activities.

	Six Months Ended June 30
	2023		2022
	(thousands)
Net cash provided by operations	$	290,218	$	436,056
Net cash used for investment	(66,369)		(37,944)
Net cash used for financing	(141,336)		(114,032)

Operating Activities

For the six months ended June 30, 2023, our operating activities generated $290.2 million of cash, compared with $436.1 million of cash generated in the same period in 2022. The $145.8 million decrease in cash provided by operations was due primarily to a decrease in income from operations, offset partially by a lesser year-over-year increase in working capital and a decrease in cash paid for taxes, net of refunds, of $102.5 million. Working capital increased $60.2 million during the six months ended June 30, 2023, compared with a $152.6 million increase for the same period in the prior year. See "Our Operating Results" in this Management's Discussion and Analysis of Financial Condition and Results of Operations for more information related to factors affecting our operating results.

The increase in working capital during both periods was primarily attributable to higher receivables and inventories, offset by an increase in accounts payable and accrued liabilities. The increases in receivables in both periods primarily reflect increased sales of approximately 41% and 25%, comparing sales for the months of June 2023 and 2022 with sales for the months of December 2022 and 2021, respectively. Inventories increased during the six months ended June 30, 2023 due to seasonally higher inventory purchases in our BMD segment in preparation for the summer building season. However, our Wood Products segment inventories decreased during the six months ended June 30, 2023 due to improved demand compared to fourth quarter 2022. During the six months ended June 30, 2022 inventories increased primarily due to increased cost of inventory purchased for resale on EWP and general line products and higher production costs for our manufactured products, offset partially by decreased costs for commodity products. The increase in accounts payable and accrued liabilities as of June 30, 2023 was related to the increase in inventories in our BMD segment and extended terms offered by certain BMD vendors, offset partially by employee incentive compensation payouts made during the period. The increase in accounts payable and accrued liabilities as of June 30, 2022 was related to the increase in inventories and higher accrued rebates.

Investment Activities

During the six months ended June 30, 2023 and 2022, we used $68.3 million and $40.8 million, respectively, of cash for purchases of property and equipment, including business improvement and quality/efficiency projects, replacement and expansion projects, and ongoing environmental compliance. During the six months ended June 30, 2023 and 2022, we received $1.0 million and $2.5 million, respectively, of earn-out income related to a previous asset sale in our Wood Products segment.

We expect capital expenditures in 2023 to total approximately $120 million to $140 million. We expect our capital spending in 2023 will be for business improvement and quality/efficiency projects, replacement and expansion projects, and ongoing environmental compliance. Our 2023 capital expenditures range includes funding for greenfield distribution centers in South Carolina and Texas, projects at our mills in the southeast to expand our EWP capacity, and the purchase of property to house an additional door shop assembly operation in Kansas City, Missouri. This level of capital expenditures could increase or decrease as a result of several factors, including acquisitions, efforts to further accelerate organic growth, exercise of lease purchase options, our financial results, future economic conditions, availability of engineering and construction resources, and timing and availability of equipment purchases.

30

Financing Activities

During the six months ended June 30, 2023, our financing activities used $141.3 million of cash, including $133.0 million for common stock dividend payments, $5.9 million of tax withholding payments on stock-based awards, and $1.5 million for the repurchase of 25,678 shares of our common stock. During the six months ended June 30, 2023, we did not borrow under our revolving credit facility and therefore have no borrowings outstanding on the facility as of June 30, 2023.

During the six months ended June 30, 2022, our financing activities used $114.0 million of cash, including $109.3 million for common stock dividend payments and $3.9 million of tax withholding payments on stock-based awards. During the six months ended June 30, 2022, we did not borrow under our revolving credit facility.

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, material cash requirements, 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.

For more information related to our debt transactions and structure, our dividend policy, and our stock repurchase program, see the discussion in Note 7, Debt, and Note 10, Stockholders' Equity, respectively, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Item 1. Financial Statements" of this Form 10-Q.

Other Material Cash Requirements

For information about other material cash requirements, see Liquidity and Capital Resources in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2022 Form 10-K. As of June 30, 2023, there have been no material changes in other material cash requirements outside the ordinary course of business since December 31, 2022.

Guarantees

Note 9, Debt, and Note 17, Commitments, Legal Proceedings and Contingencies, and Guarantees, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2022 Form 10-K describe the nature of our guarantees, including the approximate terms of the guarantees, how the guarantees arose, the events or circumstances that would require us to perform under the guarantees, and the maximum potential undiscounted amounts of future payments we could be required to make. As of June 30, 2023, there have been no material changes to the guarantees disclosed in our 2022 Form 10-K.

Seasonal Influences

We are exposed to fluctuations in quarterly sales volumes and expenses due to seasonal factors. These seasonal factors are common in the building products industry. Seasonal changes in levels of building activity affect our building products businesses, which are dependent on housing starts, repair-and-remodeling activities, and light commercial construction activities. We typically report lower sales volumes in the first and fourth quarters due to the impact of poor weather on the construction market, and we generally have higher sales volumes in the second and third quarters, reflecting an increase in construction due to more favorable weather conditions. We typically have higher working capital in the first and second quarters in preparation and response to the building season. Seasonally cold weather increases costs, especially energy consumption costs, at most of our manufacturing facilities.

31

Employees

As of July 23, 2023, we had approximately 6,820 employees. Approximately 20% of these employees work pursuant to collective bargaining agreements. As of July 23, 2023, we had ten collective bargaining agreements. Five agreements covering approximately 470 employees at our Elgin plywood plant, Kettle Falls plywood plant, and Woodinville BMD facility are set to expire on May 31, 2024, but the terms and conditions of these agreements will remain in effect after expiration pending negotiation of new agreements. We may not be able to renew these agreements or may renew them on terms that are less favorable to us than the current agreements. If any of these agreements are not renewed or extended upon their termination, we could experience a material labor disruption, strike, or significantly increased labor costs at one or more of our facilities, either in the course of negotiations of a labor agreement or otherwise. Labor disruptions or shortages could prevent us from meeting customer demands or result in increased costs, thereby reducing our sales and profitability.

Disclosures of Financial Market Risks

In the normal course of business, we are exposed to financial risks such as changes in commodity prices, interest rates, and foreign currency exchange rates. As of June 30, 2023, there have been no material changes to financial market risks disclosed in our 2022 Form 10-K.

Environmental

As of June 30, 2023, there have been no material changes to environmental issues disclosed in our 2022 Form 10-K. For additional information, see Environmental in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2022 Form 10-K.

Critical Accounting Estimates

Critical accounting estimates are those that are most important to the portrayal of our financial condition and results. These estimates require management's most difficult, subjective, or complex judgments, often as a result of the need to estimate matters that are inherently uncertain. We review the development, selection, and disclosure of our critical accounting estimates with the Audit Committee of our board of directors. For information about critical accounting estimates, see Critical Accounting Estimates in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2022 Form 10-K. At June 30, 2023, there have been no material changes to our critical accounting estimates from those disclosed in our 2022 Form 10-K.

New and Recently Adopted Accounting Standards

For information related to new and recently adopted accounting standards, see "New and Recently Adopted Accounting Standards" in Note 2, Summary of Significant Accounting Policies, of the Condensed Notes to Unaudited Quarterly Consolidated Financial Statements in "Item 1. Financial Statements" in this Form 10-Q.

ITEM 3.          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

For information relating to quantitative and qualitative disclosures about market risk, see the discussion under "Item 7A. Quantitative and Qualitative Disclosures About Market Risk" and under the headings "Disclosures of Financial Market Risks" and "Financial Instruments" in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2022 Form 10-K. As of June 30, 2023, there have been no material changes in our exposure to market risk from those disclosed in our 2022 Form 10-K.

32

ITEM 4.          CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain "disclosure controls and procedures," as defined in Rule 13a-15(e) under the Exchange Act. We have designed these controls and procedures to reasonably assure that information required to be disclosed in our reports filed or submitted under the Exchange Act, such as this Form 10-Q, is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. We have also designed our disclosure controls to provide reasonable assurance that such information is accumulated and communicated to our senior management, including our chief executive officer (CEO) and our chief financial officer (CFO), as appropriate, to allow them to make timely decisions regarding our required disclosures. Based on their evaluation, our CEO and CFO have concluded that as of June 30, 2023, our disclosure controls and procedures were effective.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the three months ended June 30, 2023, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

33

PART II—OTHER INFORMATION

ITEM 1.          LEGAL PROCEEDINGS

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 do not believe that we are party to any legal action that could reasonably be expected to have, individually or in the aggregate, a material adverse effect on our financial position, results of operations, or cash flows.

SEC regulations require us to disclose certain information about proceedings arising under federal, state or local environmental provisions if we reasonably believe that such proceedings may result in monetary sanctions above a stated threshold. Pursuant to the SEC regulations, we use a threshold of $1 million or more for purposes of determining whether disclosure of any such proceedings is required.

ITEM 1A.       RISK FACTORS

This report on Form 10-Q contains forward-looking statements. Statements that are not historical or current facts, including statements about our expectations, anticipated financial results, projected capital expenditures, and future business prospects, are forward-looking statements. You can identify these statements by our use of words such as "may," "will," "expect," "believe," "should," "plan," "anticipate," and other similar expressions. You can find examples of these statements throughout this report, including "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations." We cannot guarantee that our actual results will be consistent with the forward-looking statements we make in this report. You should review carefully the risk factors listed in "Item 1A. Risk Factors" in our 2022 Form 10-K, as well as those factors listed in other documents we file with the Securities and Exchange Commission. We do not assume an obligation to update any forward-looking statement.

ITEM 2.          UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Purchase of Equity Securities by the Issuer and Affiliated Purchasers

On July 28, 2022, our board of directors authorized the repurchase of an additional 1.5 million shares of our common stock. This increase was in addition to the remaining authorized shares under our prior common stock repurchase program that was authorized on February 25, 2015 (the Program). Share repurchases may be made on an opportunistic basis, through open market transactions, privately negotiated transactions, or by other means in accordance with applicable federal securities laws. We are not obligated to purchase any shares and there is no set date that the Program will expire. Our board of directors may increase or decrease the number of shares under the Program or terminate the Program in its discretion at any time. During second quarter 2023, we repurchased 951 shares under the Program at a cost of less than $0.1 million, or an average of $60.00 per share. Set forth below is information regarding the Company's share repurchases during the second quarter ended June 30, 2023.

	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	The Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
April 1, 2023 - April 30, 2023	951	$	60.00	951	1,971,311
May 1, 2023 - May 31, 2023	—	—		—	1,971,311
June 1, 2023 - June 30, 2023	—	—		—	1,971,311
Total	951	$	60.00	951	1,971,311

ITEM 3.          DEFAULTS UPON SENIOR SECURITIES

None.

34

ITEM 4.          MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.          OTHER INFORMATION

During the three months ended June 30, 2023, none of Boise Cascade's directors or officers adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K of the Securities Act of 1933).

ITEM 6.          EXHIBITS

Number	Description
31.1	CEO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	CFO Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	CEO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

35

SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

BOISE CASCADE COMPANY

/s/ Kelly E. Hibbs

Kelly E. Hibbs
Senior Vice President, Chief Financial Officer and Treasurer

Date:  July 31, 2023

36

EX-31.1

Exhibit 31.1

CEO CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Nathan R. Jorgensen, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Boise Cascade Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  July 31, 2023

/s/ Nathan R. Jorgensen

Nathan R. Jorgensen
Chief Executive Officer

EX-31.2

Exhibit 31.2

CFO CERTIFICATION PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Kelly E. Hibbs, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Boise Cascade Company;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  July 31, 2023

/s/ Kelly E. Hibbs

Kelly E. Hibbs

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Nathan R. Jorgensen, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.    the accompanying Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2.    the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Boise Cascade Company at the dates and for the periods indicated in the Report.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Boise Cascade Company and will be retained by Boise Cascade Company and furnished to the Securities and Exchange Commission or its staff upon request.

The undersigned expressly disclaims any obligation to update the foregoing certification except as required by law.

Date: July 31, 2023

/s/ Nathan R. Jorgensen

Nathan R. Jorgensen
Chief Executive Officer

The foregoing certification is being furnished solely pursuant to the requirements of 18 U.S.C. § 1350 and is not being filed as a part of the Report or as a separate disclosure document.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Kelly E. Hibbs, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.     the accompanying Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the "Report") fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

2.     the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Boise Cascade Company at the dates and for the periods indicated in the Report.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to Boise Cascade Company and will be retained by Boise Cascade Company and furnished to the Securities and Exchange Commission or its staff upon request.

The undersigned expressly disclaims any obligation to update the foregoing certification except as required by law.

Date: July 31, 2023

/s/ Kelly E. Hibbs

Kelly E. Hibbs

Chief Financial Officer

The foregoing certification is being furnished solely pursuant to the requirements of 18 U.S.C. § 1350 and is not being filed as a part of the Report or as a separate disclosure document.

XML

Document and Entity Information Document - shares	6 Months Ended
	Jun. 30, 2023	Jul. 28, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
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
Title of 12(b) Security	Common Stock, $0.01 par value per share
Trading Symbol	BCC
Security Exchange Name	NYSE
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
Entity Common Stock, Shares Outstanding		39,589,825
Entity Central Index Key	0001328581
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Sales
Sales	$ 1,815,219	$ 2,278,072	$ 3,359,548	$ 4,604,354
Costs and expenses
Materials, labor, and other operating expenses (excluding depreciation)	1,426,436	1,797,948	2,657,071	3,527,844
Depreciation and amortization	30,722	20,694	61,908	41,237
Selling and distribution expenses	139,205	134,279	267,993	280,930
General and administrative expenses	30,147	27,701	56,610	53,753
Other (income) expense, net	(1,266)	375	(1,611)	(2,113)
Total costs and expenses	1,625,244	1,980,997	3,041,971	3,901,651
Income from operations	189,975	297,075	317,577	702,703
Foreign currency exchange gain (loss)	320	(499)	247	(367)
Pension expense (excluding service costs)	(41)	(41)	(82)	(212)
Interest expense	(6,339)	(6,317)	(12,700)	(12,571)
Interest income	11,519	1,385	21,204	1,450
Change in fair value of interest rate swaps	333	394	(471)	2,460
Total nonoperating income (expense)	5,792	(5,078)	8,198	(9,240)
Income before income taxes	195,767	291,997	325,775	693,463
Income tax provision	(49,447)	(73,886)	(82,722)	(172,752)
Net income	$ 146,320	$ 218,111	$ 243,053	$ 520,711
Weighted average common shares outstanding:
Basic (in shares)	39,675	39,544	39,634	39,509
Diluted (in shares)	39,834	39,763	39,818	39,762
Net income per common share:
Basic (in dollars per share)	$ 3.69	$ 5.52	$ 6.13	$ 13.18
Diluted (in dollars per share)	3.67	5.49	6.10	13.10
Dividends declared per common share	$ 3.15	$ 2.62	$ 3.30	$ 2.74

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 146,320	$ 218,111	$ 243,053	$ 520,711
Defined benefit pension plans
Amortization of actuarial loss, net of tax	7	16	13	32
Effects of settlements, net of tax	0	0	0	98
Other comprehensive income, net of tax	7	16	13	130
Comprehensive income	$ 146,327	$ 218,127	$ 243,066	$ 520,841

XML

Consolidated Statements of Comprehensive Income (Unaudited) Parentheticals - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Amortization of actuarial loss, tax	$ 2	$ 5	$ 4	$ 10
Effect of settlements, tax effect	$ 0	$ 0	$ 0	$ 32

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Current
Cash and cash equivalents	$ 1,080,857	$ 998,344
Receivables
Other	13,244	23,023
Inventories	703,033	697,551
Prepaid expenses and other	22,682	47,878
Total current assets	2,298,645	2,064,052
Property and equipment, net	784,562	770,023
Operating lease right-of-use assets	53,270	55,582
Finance lease right-of-use assets	25,264	26,501
Timber deposits	7,613	7,519
Goodwill	137,958	137,958
Intangible assets, net	152,834	161,433
Deferred income taxes	5,977	6,116
Other assets	10,265	11,330
Total assets	3,476,388	3,240,514
Accrued liabilities
Compensation and benefits	106,980	142,463
Interest payable	9,961	9,955
Other	133,420	122,606
Total current liabilities	667,344	545,828
Debt
Long-term debt	444,836	444,392
Other
Compensation and benefits	35,731	33,226
Operating lease liabilities, net of current portion	46,784	48,668
Finance lease liabilities, net of current portion	29,073	30,022
Deferred income taxes	65,944	63,454
Other long-term liabilities	18,152	16,949
Total other liabilities	195,684	192,319
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	$ 450	$ 448
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	44,983,000	44,827,000
Treasury Stock, Common, Value	$ (140,448)	$ (138,909)
Treasury stock, shares at cost	5,393,000	5,367,000
Additional paid-in capital	$ 552,805	$ 551,215
Accumulated other comprehensive loss	(507)	(520)
Retained earnings	1,756,224	1,645,741
Total stockholders' equity	2,168,524	2,057,975
Total liabilities and stockholders' equity	3,476,388	3,240,514
Nonrelated Party
Receivables	478,655	297,237
Accounts Payable	415,387	269,785
Related Party
Receivables	174	19
Accounts Payable	$ 1,596	$ 1,019

XML

Consolidated Balance Sheets (Current Period Unaudited) Parenthetical - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Trade receivables, allowances	$ 3,212	$ 3,264

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash provided by (used for) operations
Net income	$ 243,053	$ 520,711
Items in net income not using (providing) cash
Depreciation and amortization, including deferred financing costs and other	63,293	42,240
Stock-based compensation	7,518	5,403
Pension expense	82	212
Deferred income taxes	2,749	19,287
Change in fair value of interest rate swaps	471	(2,460)
Other	(1,798)	(1,987)
Decrease (increase) in working capital
Receivables	(171,794)	(129,993)
Inventories	(5,482)	(142,936)
Prepaid expenses and other	(7,805)	(7,602)
Accounts payable and accrued liabilities	124,910	127,935
Pension contributions	(268)	(794)
Income taxes payable	33,220	4,507
Other	2,069	1,533
Net cash provided by operations	290,218	436,056
Cash provided by (used for) investment
Expenditures for property and equipment	(68,287)	(40,808)
Proceeds from sales of assets and other	1,918	2,864
Net cash used for investment	(66,369)	(37,944)
Cash provided by (used for) financing
Dividends paid on common stock	(132,967)	(109,291)
Tax withholding payments on stock-based awards	(5,926)	(3,930)
Treasury stock purchased	(1,539)	0
Other	(904)	(811)
Net cash used for financing	(141,336)	(114,032)
Net increase in cash and cash equivalents	82,513	284,080
Balance at beginning of the period	998,344	748,907
Balance at end of the period	$ 1,080,857	$ 1,032,987

XML

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, 2021		44,698
Beginning Balance, net of taxes at Dec. 31, 2021	$ 1,352,619	$ 447	$ (138,909)	$ 543,249	$ (1,047)	$ 948,879
Beginning balance, treasury stock, shares at Dec. 31, 2021			5,367
Net income	302,600					302,600
Other comprehensive income (loss)	114				114
Common stock issued, shares		117
Common stock issued, value	1	$ 1
Stock-based compensation	2,392			2,392
Common stock dividends	$ (5,133)					(5,133)
Dividends declared per common share	$ 0.12
Tax withholding payments on stock-based awards	$ (3,930)			(3,930)
Proceeds from exercise of stock options	27			27
Other	(1)			(1)
Ending balance, common stock, shares issued at Mar. 31, 2022		44,815
Ending Balance, net of taxes at Mar. 31, 2022	1,648,689	$ 448	$ (138,909)	541,737	(933)	1,246,346
Ending balance, treasury stock, shares at Mar. 31, 2022			5,367
Beginning balance, common stock, shares issued at Dec. 31, 2021		44,698
Beginning Balance, net of taxes at Dec. 31, 2021	1,352,619	$ 447	$ (138,909)	543,249	(1,047)	948,879
Beginning balance, treasury stock, shares at Dec. 31, 2021			5,367
Net income	520,711
Other comprehensive income (loss)	$ 130
Dividends declared per common share	$ 2.74
Ending balance, common stock, shares issued at Jun. 30, 2022		44,815
Ending Balance, net of taxes at Jun. 30, 2022	$ 1,764,985	$ 448	$ (138,909)	544,748	(917)	1,359,615
Ending balance, treasury stock, shares at Jun. 30, 2022			5,367
Beginning balance, common stock, shares issued at Mar. 31, 2022		44,815
Beginning Balance, net of taxes at Mar. 31, 2022	1,648,689	$ 448	$ (138,909)	541,737	(933)	1,246,346
Beginning balance, treasury stock, shares at Mar. 31, 2022			5,367
Net income	218,111					218,111
Other comprehensive income (loss)	16				16
Stock-based compensation	3,011			3,011
Common stock dividends	$ (104,842)					(104,842)
Dividends declared per common share	$ 2.62
Ending balance, common stock, shares issued at Jun. 30, 2022		44,815
Ending Balance, net of taxes at Jun. 30, 2022	$ 1,764,985	$ 448	$ (138,909)	544,748	(917)	1,359,615
Ending balance, treasury stock, shares at Jun. 30, 2022			5,367
Beginning balance, common stock, shares issued at Dec. 31, 2022	44,827	44,827
Beginning Balance, net of taxes at Dec. 31, 2022	$ 2,057,975	$ 448	$ (138,909)	551,215	(520)	1,645,741
Beginning balance, treasury stock, shares at Dec. 31, 2022	5,367		5,367
Net income	$ 96,733					96,733
Other comprehensive income (loss)	6				6
Common stock issued, shares		156
Common stock issued, value	2	$ 2
Treasury stock, shares purchased			25
Treasury Stock, Value	(1,482)		$ (1,482)
Stock-based compensation	3,324			3,324
Common stock dividends	$ (6,110)					(6,110)
Dividends declared per common share	$ 0.15
Tax withholding payments on stock-based awards	$ (5,926)			(5,926)
Other	(2)			(2)
Ending balance, common stock, shares issued at Mar. 31, 2023		44,983
Ending Balance, net of taxes at Mar. 31, 2023	$ 2,144,520	$ 450	$ (140,391)	548,611	(514)	1,736,364
Ending balance, treasury stock, shares at Mar. 31, 2023			5,392
Beginning balance, common stock, shares issued at Dec. 31, 2022	44,827	44,827
Beginning Balance, net of taxes at Dec. 31, 2022	$ 2,057,975	$ 448	$ (138,909)	551,215	(520)	1,645,741
Beginning balance, treasury stock, shares at Dec. 31, 2022	5,367		5,367
Net income	$ 243,053
Other comprehensive income (loss)	$ 13
Dividends declared per common share	$ 3.30
Ending balance, common stock, shares issued at Jun. 30, 2023	44,983	44,983
Ending Balance, net of taxes at Jun. 30, 2023	$ 2,168,524	$ 450	$ (140,448)	552,805	(507)	1,756,224
Ending balance, treasury stock, shares at Jun. 30, 2023	5,393		5,393
Beginning balance, common stock, shares issued at Mar. 31, 2023		44,983
Beginning Balance, net of taxes at Mar. 31, 2023	$ 2,144,520	$ 450	$ (140,391)	548,611	(514)	1,736,364
Beginning balance, treasury stock, shares at Mar. 31, 2023			5,392
Net income	146,320					146,320
Other comprehensive income (loss)	7				7
Treasury stock, shares purchased			1
Treasury Stock, Value	(57)		$ (57)
Stock-based compensation	4,194			4,194
Common stock dividends	$ (126,460)					(126,460)
Dividends declared per common share	$ 3.15
Ending balance, common stock, shares issued at Jun. 30, 2023	44,983	44,983
Ending Balance, net of taxes at Jun. 30, 2023	$ 2,168,524	$ 450	$ (140,448)	$ 552,805	$ (507)	$ 1,756,224
Ending balance, treasury stock, shares at Jun. 30, 2023	5,393		5,393

XML

Nature of Operations and Consolidation

6 Months Ended

Jun. 30, 2023

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 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 2022 Form 10-K and the other reports we file with the Securities and Exchange Commission.

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2023

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 2022 Form 10-K.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles (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 (ROU) 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 BMD segment, costs related to shipping and handling of $60.3 million and $56.0 million for the three months ended June 30, 2023 and 2022, respectively, and $113.8 million and $112.3 million for the six months ended June 30, 2023 and 2022, respectively, are included in "Selling and distribution expenses" in our Consolidated Statements of Operations. In our BMD segment, our activities relate to the purchase and resale of finished products, 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, as well as temporary protection from price increases. 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 June 30, 2023 and December 31, 2022, we had $97.0 million and $92.9 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 material 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 June 30, 2023 and December 31, 2022, we had $8.5 million and $17.8 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 BMD 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.

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 was 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):

	June 30, 2023		December 31, 2022
	(thousands)
Finished goods and work in process	$	605,967	$	596,328
Logs	47,763		54,921
Other raw materials and supplies	49,303		46,302
	$	703,033	$	697,551

Property and Equipment

Property and equipment consisted of the following asset classes:

	June 30, 2023		December 31, 2022
	(thousands)
Land	$	64,020	$	60,211
Buildings	246,206		231,087
Improvements	71,144		69,832
Mobile equipment, information technology, and office furniture	226,136		210,666
Machinery and equipment	1,005,229		989,338
Construction in progress	48,482		41,899
	1,661,217		1,603,033
Less: accumulated depreciation	(876,655)		(833,010)
	$	784,562	$	770,023

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 an interest rate swap. Our cash is recorded at cost, which approximates fair value, and our cash equivalents are money market funds. As of June 30, 2023 and December 31, 2022, we held $1,053.8 million and $954.4 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 June 30, 2023 and December 31, 2022, the book value of our fixed-rate debt for each period was $400.0 million, and the fair value was estimated to be $360.0 million and $348.5 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 Secured Overnight Financing Rate (SOFR) 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 an interest rate swap 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 Swap

We are exposed to interest rate risk arising from fluctuations in variable-rate SOFR on our term loan and when we have loan amounts outstanding on our Revolving Credit Facility. At June 30, 2023, we had $50.0 million of variable-rate debt outstanding based on one-month term SOFR. 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 mitigate the variable-rate cash flow exposure with 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 June 30, 2023, we had one interest rate swap agreement, which we entered into in 2020 and commenced in February 2022. Under the interest rate swap, we receive one-month SOFR plus a spread adjustment of 0.10% 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 this interest rate swap, with a notional principal amount of $50.0 million, are due on a monthly basis at an annual fixed rate of 0.41%, and this swap expires in June 2025.

The interest rate swap agreement was not designated as a cash flow hedge, 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 June 30, 2023 and December 31, 2022, we recorded long-term assets of $4.3 million and $4.8 million, respectively, in "Other assets" on our Consolidated Balance Sheets, representing the fair value of the interest rate swap agreement. The swap was 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 June 30, 2023, receivables from two customers accounted for approximately 19% and 13% of total receivables. At December 31, 2022, receivables from these two customers accounted for approximately 17% and 14% of total receivables. No other customer accounted for 10% or more of total receivables.

New and Recently Adopted Accounting Standards

There were no accounting standards recently issued that had or are expected to have a material impact on our consolidated financial statements and associated disclosures.

XML

Income Taxes

6 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three and six months ended June 30, 2023, we recorded $49.4 million and $82.7 million, respectively, of income tax expense and had an effective rate of 25.3% and 25.4%, respectively. For the three and six months ended June 30, 2022, we recorded $73.9 million and $172.8 million respectively, of income tax expense and had an effective rate of 25.3% and 24.9%, respectively. For all periods, the primary reason for the difference between the federal and statutory income tax rate of 21% and the effective tax rate was the effect of state taxes.

During the six months ended June 30, 2023 and 2022, cash paid for taxes, net of refunds received, were $46.6 million and $149.1 million, respectively.

XML

Net Income Per Common Share

6 Months Ended

Jun. 30, 2023

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 June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands, except per-share data)
Net income	$	146,320	$	218,111	$	243,053	$	520,711
Weighted average common shares outstanding during the period (for basic calculation)	39,675		39,544		39,634		39,509
Dilutive effect of other potential common shares	159		219		184		253
Weighted average common shares and potential common shares (for diluted calculation)	39,834		39,763		39,818		39,762
Net income per common share - Basic	$	3.69	$	5.52	$	6.13	$	13.18
Net income per common share - Diluted	$	3.67	$	5.49	$	6.10	$	13.10

The computation of the dilutive effect of other potential common shares excludes stock awards representing an insignificant number of shares of common stock and 0.1 million shares of common stock, respectively, in the three months ended June 30, 2023 and 2022, and 0.1 million shares of common stock in both the six months ended June 30, 2023 and 2022. Under the treasury stock method, the inclusion of these stock awards would have been antidilutive.

XML

Acquisition	6 Months Ended
	Jun. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Acquisition	AcquisitionWe account for acquisition transactions in accordance with ASC 805, Business Combinations. Accordingly, the results of operations of the acquiree are included in our consolidated financial statements from the acquisition date. The consideration transferred is allocated to the identifiable assets acquired and liabilities assumed based on estimated fair values at the acquisition date, with any excess recorded as goodwill. Transaction-related costs are expensed in the period the costs are incurred. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding adjustment to goodwill.On July 25, 2022, our wholly-owned subsidiary, Boise Cascade Wood Products, L.L.C., completed the acquisition of 100% of the equity interest in Coastal Plywood, and its plywood manufacturing operations located in Havana, Florida, and Chapman, Alabama, for a purchase price of $515.2 million, including a post-closing adjustment of $1.6 million based upon a working capital target. We finalized the purchase price accounting as of March 31, 2023.

XML

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price and related costs over the fair value of the net tangible and intangible assets of businesses acquired.

The carrying amount of our goodwill by segment is as follows:

	Building Materials Distribution		Wood Products		Total
	(thousands)
Balance at December 31, 2022 and June 30, 2023	$	11,792	$	126,166	$	137,958

At June 30, 2023 and December 31, 2022, intangible assets represented the values assigned to trade names and trademarks and customer relationships. We maintain trademarks for our manufactured wood products, particularly EWP. Our key registered trademarks are perpetual in duration as long as we continue to timely file all post registration maintenance documents related thereto. These trade names and trademarks have indefinite lives, are not amortized, and have a carrying amount of $8.9 million. In 2022, we acquired a trade name and customer relationships. The acquired trade name has a useful life of one year. The weighted-average useful life for customer relationships from the date of purchase is approximately 10 years. For the three months ended June 30, 2023 and 2022 we recognized $4.3 million and $0.3 million, respectively, of amortization expense for intangible assets. For the six months ended June 30, 2023 and 2022 we recognized $8.6 million and $0.6 million, respectively, of amortization expense for intangible assets.

Intangible assets consisted of the following:

	June 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(thousands)
Trade names and trademarks	$	9,600	$	(642)	$	8,958
Customer relationships	166,050		(22,174)		143,876
	$	175,650	$	(22,816)	$	152,834

	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(thousands)
Trade names and trademarks	$	9,600	$	(292)	$	9,308
Customer relationships	166,050		(13,925)		152,125
	$	175,650	$	(14,217)	$	161,433

XML

Debt

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt

Debt

Long-term debt consisted of the following:

	June 30, 2023		December 31, 2022
	(thousands)
Asset-based revolving credit facility due 2027	$	—	$	—
Asset-based credit facility term loan due 2027	50,000		50,000
4.875% senior notes due 2030	400,000		400,000
Deferred financing costs	(5,164)		(5,608)
Long-term debt	$	444,836	$	444,392

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, (the Amended Agreement) with Wells Fargo Capital Finance, LLC, as administrative agent, and the banks named therein as lenders. The Amended Agreement includes a $400 million senior secured asset-based revolving credit facility (Revolving Credit Facility) and a $50.0 million term loan (ABL Term Loan) maturing on the earlier of (a) September 9, 2027 and (b) 90 days prior to the maturity of our $400 million of 4.875% senior notes due July 1, 2030 (or the maturity date of any permitted refinancing indebtedness or permitted upsized refinancing indebtedness in respect thereof). 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 the greater of (a) 10% of the Line Cap (as defined in the Amended Agreement) and (b) $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 June 30, 2023 was $395.9 million.

The Amended Agreement permits us to pay dividends only if at the time of payment (a) no default has occurred or is continuing (or would result from such payment) under the Amended Agreement, and (b) either (i) pro forma Excess Availability (as defined in the Amended Agreement) is equal to or exceeds the greater of (x) 20% of the Line Cap and (y) $75 million or (ii) (x) pro forma Excess Availability is equal to or exceeds the greater of (1) 15% of Line Cap and (2) $55 million 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 Daily Simple SOFR, Term SOFR, 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 SOFR 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. Both SOFR options include an additional credit spread adjustment of 0.10%. Letters of credit are subject to a fronting fee payable to the issuing bank and a fee payable to the lenders equal to the Term SOFR margin rate. In addition, we are required to pay an unused commitment fee at a rate of 0.20% per annum of the average unused portion of the lending commitments.

At both June 30, 2023 and December 31, 2022, we had no borrowings outstanding under the Revolving Credit Facility and $4.1 million and $3.8 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 Daily Simple SOFR, Term SOFR, 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 SOFR 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). Both SOFR options include an additional credit spread adjustment of 0.10%. During the six months ended June 30, 2023, the average interest rate on the ABL Term Loan was approximately 6.58%.

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 5.6% during the six months ended June 30, 2023.

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 Swap

For information on interest rate swap, see Interest Rate Risk and Interest Rate Swap of Note 2, Summary of Significant Accounting Policies.

Cash Paid for Interest

For the six months ended June 30, 2023 and 2022, cash payments for interest were $11.1 million and $11.3 million, respectively.

XML

Leases

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Lessee, Operating Leases

Leases

Lease Costs

The components of lease expense were as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands)
Operating lease cost	$	3,264	$	3,585	$	6,581	$	7,146
Finance lease cost
Amortization of right-of-use assets	619		621		1,237		1,246
Interest on lease liabilities	560		587		1,120		1,175
Variable lease cost	1,377		1,087		2,762		2,122
Short-term lease cost	1,478		1,340		3,029		2,652
Sublease income	(111)		(112)		(164)		(224)
Total lease cost	$	7,187	$	7,108	$	14,565	$	14,117

Other Information

Supplemental cash flow information related to leases was as follows:

	Six Months Ended June 30
	2023		2022
	(thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6,706	$	6,932
Operating cash flows from finance leases	1,118		1,173
Financing cash flows from finance leases	904		838
Right-of-use assets obtained in exchange for lease obligations
Operating leases	3,578		4,997
Finance leases	—		—

Other information related to leases was as follows:

	June 30, 2023		December 31, 2022
Weighted-average remaining lease term (years)
Operating leases	7		7
Finance leases	14		14
Weighted-average discount rate
Operating leases	6.1	%	6.0	%
Finance leases	7.6	%	7.6	%

As of June 30, 2023, our minimum lease payment requirements for noncancelable operating and finance leases are as follows:

	Operating Leases		Finance Leases
	(thousands)
Remainder of 2023	$	6,697	$	2,035
2024	12,472		4,052
2025	10,844		3,735
2026	7,673		3,581
2027	6,970		3,649
Thereafter	26,644		33,086
Total future minimum lease payments	71,300		50,138
Less: interest	(14,599)		(19,187)
Total lease obligations	56,701		30,951
Less: current obligations	(9,917)		(1,878)
Long-term lease obligations	$	46,784	$	29,073

Lessee, Finance Leases

Leases

Lease Costs

The components of lease expense were as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands)
Operating lease cost	$	3,264	$	3,585	$	6,581	$	7,146
Finance lease cost
Amortization of right-of-use assets	619		621		1,237		1,246
Interest on lease liabilities	560		587		1,120		1,175
Variable lease cost	1,377		1,087		2,762		2,122
Short-term lease cost	1,478		1,340		3,029		2,652
Sublease income	(111)		(112)		(164)		(224)
Total lease cost	$	7,187	$	7,108	$	14,565	$	14,117

Other Information

Supplemental cash flow information related to leases was as follows:

	Six Months Ended June 30
	2023		2022
	(thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6,706	$	6,932
Operating cash flows from finance leases	1,118		1,173
Financing cash flows from finance leases	904		838
Right-of-use assets obtained in exchange for lease obligations
Operating leases	3,578		4,997
Finance leases	—		—

Other information related to leases was as follows:

	June 30, 2023		December 31, 2022
Weighted-average remaining lease term (years)
Operating leases	7		7
Finance leases	14		14
Weighted-average discount rate
Operating leases	6.1	%	6.0	%
Finance leases	7.6	%	7.6	%

As of June 30, 2023, our minimum lease payment requirements for noncancelable operating and finance leases are as follows:

	Operating Leases		Finance Leases
	(thousands)
Remainder of 2023	$	6,697	$	2,035
2024	12,472		4,052
2025	10,844		3,735
2026	7,673		3,581
2027	6,970		3,649
Thereafter	26,644		33,086
Total future minimum lease payments	71,300		50,138
Less: interest	(14,599)		(19,187)
Total lease obligations	56,701		30,951
Less: current obligations	(9,917)		(1,878)
Long-term lease obligations	$	46,784	$	29,073

XML

Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

Compensation Related Costs [Abstract]

Stock-Based Compensation

Stock-Based Compensation

In first quarter 2023 and 2022, 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 six months ended June 30, 2023, we granted 93,282 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% to 200% of the target amount, depending upon Boise Cascade's 2023 return on invested capital (ROIC), as approved by our compensation committee in accordance with the related grant agreement. We define ROIC as net operating profit after taxes (NOPAT) divided by average invested capital (based on a rolling thirteen-month average). We define NOPAT as net income plus after-tax financing expense. Invested capital is defined as total assets plus capitalized lease expense, less cash, cash equivalents, and current liabilities, excluding short-term debt. 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 2023 EBITDA, defined as income before interest (interest expense and interest income), income taxes, and depreciation and amortization, as approved by executive management, determined in accordance with the related grant agreement. Because the PSUs 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 six months ended June 30, 2022, we granted 66,180 PSUs to our officers and other employees, subject to performance and service conditions. During the 2022 performance period, officers and other employees earned 152% and 200%, respectively, of the target based on Boise Cascade's 2022 ROIC and EBITDA, as applicable, determined by our compensation committee and executive management, as applicable, in accordance with the related grant agreements.

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 six months ended June 30, 2023 and 2022, we granted an aggregate of 115,252 and 86,164 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 in a single installment after 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 six months ended June 30, 2023 and 2022, the total fair value of PSUs and RSUs vested was $16.8 million and $12.0 million, respectively.

The following summarizes the activity of our PSUs and RSUs awarded under our incentive plan for the six months ended June 30, 2023:

	PSUs			RSUs
	Number of shares	Weighted Average Grant-Date Fair Value		Number of shares	Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2022	317,854	$	51.46	155,339	$	65.17
Granted	93,282	69.33		115,252	69.34
Performance condition adjustment (a)	39,873	79.80		—	—
Vested	(154,794)	40.61		(87,632)	60.64
Forfeited	(5,399)	68.55		(3,200)	70.32
Outstanding, June 30, 2023	290,816	$	66.54	179,759	$	69.96

_______________________________

(a)    Represents additional PSUs granted during the six months ended June 30, 2023, related to above-target achievement of the 2022 performance condition 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 compensation expense for stock awards with only service conditions on a straight-line basis over the requisite service period. Most of our stock-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 June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands)
PSUs	$	2,577	$	1,695	$	4,391	$	3,001
RSUs	1,617		1,317		3,127		2,402
Total	$	4,194	$	3,012	$	7,518	$	5,403

The related tax benefit for the six months ended June 30, 2023 and 2022, was $1.9 million and $1.3 million respectively. As of June 30, 2023, total unrecognized compensation expense related to nonvested share-based compensation arrangements was $25.8 million. This expense is expected to be recognized over a weighted-average period of 2.1 years.

XML

Stockholders' Equity

6 Months Ended

Jun. 30, 2023

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 six months ended June 30, 2023 and 2022, see "Common stock dividends" on our Consolidated Statements of Stockholders' Equity.

On July 27, 2023, our board of directors declared a quarterly dividend of $0.20 per share on our common stock, payable on September 15, 2023, to stockholders of record on September 1, 2023. 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 7, 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, material cash requirements, 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.

Stock Repurchase

On July 28, 2022, our board of directors authorized the repurchase of an additional 1.5 million shares of our common stock. This increase was in addition to the remaining authorized shares under our prior common stock repurchase program that was authorized on February 25, 2015 (the Program). Share repurchases may be made on an opportunistic basis, through open market transactions, privately negotiated transactions, or by other means in accordance with applicable federal securities laws. We are not obligated to purchase any shares and there is no set date that the Program will expire. Our board of directors may increase or decrease the number of shares under the Program or terminate the Program in its discretion at any time. During the six months ended June 30, 2023, we repurchased 25,678 shares under the Program at a cost of $1.5 million, or an average of $59.91 per share. The shares were purchased with cash on hand and are recorded as "Treasury stock" on our Consolidated Balance Sheet. As of June 30, 2023, there were 1,971,311 shares of common stock that may yet be purchased under the Program.

XML

Transactions With Related Party

6 Months Ended

Jun. 30, 2023

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 $3.1 million and $3.5 million, respectively, during the three months ended June 30, 2023 and 2022, and $6.1 million and $7.2 million, respectively, during the six months ended June 30, 2023 and 2022. These sales are recorded in "Sales" in our Consolidated Statements of Operations.

Costs and Expenses

Related-party wood fiber purchases from LTP were $21.1 million and $23.5 million, respectively, during the three months ended June 30, 2023 and 2022, and $41.2 million and $44.3 million, respectively, during the six months ended June 30, 2023 and 2022. These costs are recorded in "Materials, labor, and other operating expenses (excluding depreciation)" in our Consolidated Statements of Operations.

XML

Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

We operate our business using two reportable segments: Wood Products and BMD. We measure and evaluate our reportable segments based on net sales and segment operating income (loss). Accordingly, our chief operating decision maker reviews the performance of the company and allocates resources based primarily on net sales and segment operating income (loss) for our business segments. 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 16, Segment Information, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2022 Form 10-K.    

    Wood Products and BMD segment sales to external customers, including related parties, by product line, are as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(millions)
Wood Products (a)
LVL (b)	$	14.2	$	(9.5)	$	21.6	$	(7.8)
I-joists (b)	9.3		(12.5)		14.0		(14.7)
Other engineered wood products (b)	9.8		13.1		17.2		24.9
Plywood and veneer	93.8		112.1		185.1		273.3
Lumber	23.7		20.9		47.2		38.6
Byproducts	23.1		19.3		47.4		38.3
Other	4.8		3.5		11.3		8.7
	178.7		146.9		343.9		361.3
Building Materials Distribution
Commodity	613.7		956.3		1,161.2		2,058.1
General line	647.5		700.5		1,181.0		1,315.8
Engineered wood products	375.4		474.4		673.5		869.1
	1,636.5		2,131.2		3,015.7		4,243.0
	$	1,815.2	$	2,278.1	$	3,359.5	$	4,604.4

 ___________________________________  

(a)    Amounts represent sales to external customers. Sales are calculated after intersegment sales eliminations to our BMD segment.

(b)    Sales of EWP to external customers are net of the cost of all EWP rebates and sales allowances provided at various stages of the supply chain (including distributors, dealers, and homebuilders). For both the six months ended June 30, 2023 and 2022, approximately 78% of Wood Products' EWP sales volumes were to our BMD segment.

An analysis of our operations by segment is as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands)
Net sales by segment
Wood Products	$	530,273	$	536,030	$	967,701	$	1,094,974
Building Materials Distribution	1,636,538		2,131,200		3,015,780		4,243,033
Intersegment eliminations (a)	(351,592)		(389,158)		(623,933)		(733,653)
Total net sales	$	1,815,219	$	2,278,072	$	3,359,548	$	4,604,354
Segment operating income
Wood Products	$	104,035	$	154,101	$	173,430	$	344,217
Building Materials Distribution	98,550		154,308		168,235		380,200
Total segment operating income	202,585		308,409		341,665		724,417
Unallocated corporate costs	(12,610)		(11,334)		(24,088)		(21,714)
Income from operations	$	189,975	$	297,075	$	317,577	$	702,703

___________________________________ 

(a)    Primarily represents intersegment sales from our Wood Products segment to our BMD segment.

XML

Commitments, Legal Proceedings and Contingencies, and Guarantees

6 Months Ended

Jun. 30, 2023

Commitments and Contingencies Disclosure [Abstract]

Commitments, Legal Proceedings and Contingencies, and Guarantees

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 17, Commitments, Legal Proceedings and Contingencies, and Guarantees, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2022 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 June 30, 2023, there have been no material changes to the above commitments disclosed in the 2022 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 do not believe that we are party to any legal action that could reasonably be expected to have, individually or in the aggregate, a material adverse effect on our financial position, results of operations, or cash flows.

Guarantees

We provide guarantees, indemnifications, and assurances to others. Note 17, Commitments, Legal Proceedings and Contingencies, and Guarantees, of the Notes to Consolidated Financial Statements in "Item 8. Financial Statements and Supplementary Data" in our 2022 Form 10-K describes the nature of our guarantees, including the approximate terms of the guarantees, how the guarantees arose, the events or circumstances that would require us to perform under the guarantees, and the maximum potential undiscounted amounts of future payments we could be required to make. As of June 30, 2023, there have been no material changes to the guarantees disclosed in the 2022 Form 10-K.

XML

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Use of Estimates [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles (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 (ROU) 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 BMD segment, costs related to shipping and handling of $60.3 million and $56.0 million for the three months ended June 30, 2023 and 2022, respectively, and $113.8 million and $112.3 million for the six months ended June 30, 2023 and 2022, respectively, are included in "Selling and distribution expenses" in our Consolidated Statements of Operations. In our BMD segment, our activities relate to the purchase and resale of finished products, 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, as well as temporary protection from price increases. 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 June 30, 2023 and December 31, 2022, we had $97.0 million and $92.9 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 material 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 BMD 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.

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 was 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.

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 an interest rate swap. Our cash is recorded at cost, which approximates fair value, and our cash equivalents are money market funds. As of June 30, 2023 and December 31, 2022, we held $1,053.8 million and $954.4 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 June 30, 2023 and December 31, 2022, the book value of our fixed-rate debt for each period was $400.0 million, and the fair value was estimated to be $360.0 million and $348.5 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 Secured Overnight Financing Rate (SOFR) 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 an interest rate swap 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

There were no accounting standards recently issued that had or are expected to have a material impact on our consolidated financial statements and associated disclosures.

Business Combinations [Policy Text Block]

We account for acquisition transactions in accordance with ASC 805, Business Combinations. Accordingly, the results of operations of the acquiree are included in our consolidated financial statements from the acquisition date. The consideration transferred is allocated to the identifiable assets acquired and liabilities assumed based on estimated fair values at the acquisition date, with any excess recorded as goodwill. Transaction-related costs are expensed in the period the costs are incurred. During the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the assets acquired and liabilities assumed with the corresponding adjustment to goodwill.

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 compensation expense for stock awards with only service conditions on a straight-line basis over the requisite service period.

XML

Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Inventories [Table Text Block]

Inventories included the following (work in process is not material):

	June 30, 2023		December 31, 2022
	(thousands)
Finished goods and work in process	$	605,967	$	596,328
Logs	47,763		54,921
Other raw materials and supplies	49,303		46,302
	$	703,033	$	697,551

Property and Equipment [Table Text Block]

Property and equipment consisted of the following asset classes:

	June 30, 2023		December 31, 2022
	(thousands)
Land	$	64,020	$	60,211
Buildings	246,206		231,087
Improvements	71,144		69,832
Mobile equipment, information technology, and office furniture	226,136		210,666
Machinery and equipment	1,005,229		989,338
Construction in progress	48,482		41,899
	1,661,217		1,603,033
Less: accumulated depreciation	(876,655)		(833,010)
	$	784,562	$	770,023

XML

Net Income Per Common Share (Tables)

6 Months Ended

Jun. 30, 2023

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 June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands, except per-share data)
Net income	$	146,320	$	218,111	$	243,053	$	520,711
Weighted average common shares outstanding during the period (for basic calculation)	39,675		39,544		39,634		39,509
Dilutive effect of other potential common shares	159		219		184		253
Weighted average common shares and potential common shares (for diluted calculation)	39,834		39,763		39,818		39,762
Net income per common share - Basic	$	3.69	$	5.52	$	6.13	$	13.18
Net income per common share - Diluted	$	3.67	$	5.49	$	6.10	$	13.10

XML

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill [Table Text Block]

The carrying amount of our goodwill by segment is as follows:

	Building Materials Distribution		Wood Products		Total
	(thousands)
Balance at December 31, 2022 and June 30, 2023	$	11,792	$	126,166	$	137,958

Schedule of Indefinite-Lived Intangible Assets [Table Text Block]

Intangible assets consisted of the following:

	June 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(thousands)
Trade names and trademarks	$	9,600	$	(642)	$	8,958
Customer relationships	166,050		(22,174)		143,876
	$	175,650	$	(22,816)	$	152,834

	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(thousands)
Trade names and trademarks	$	9,600	$	(292)	$	9,308
Customer relationships	166,050		(13,925)		152,125
	$	175,650	$	(14,217)	$	161,433

Schedule of Finite-Lived Intangible Assets [Table Text Block]

Intangible assets consisted of the following:

	June 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(thousands)
Trade names and trademarks	$	9,600	$	(642)	$	8,958
Customer relationships	166,050		(22,174)		143,876
	$	175,650	$	(22,816)	$	152,834

	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(thousands)
Trade names and trademarks	$	9,600	$	(292)	$	9,308
Customer relationships	166,050		(13,925)		152,125
	$	175,650	$	(14,217)	$	161,433

XML

Debt (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt [Table Text Block]

Long-term debt consisted of the following:

	June 30, 2023		December 31, 2022
	(thousands)
Asset-based revolving credit facility due 2027	$	—	$	—
Asset-based credit facility term loan due 2027	50,000		50,000
4.875% senior notes due 2030	400,000		400,000
Deferred financing costs	(5,164)		(5,608)
Long-term debt	$	444,836	$	444,392

XML

Leases (Tables)

6 Months Ended

Jun. 30, 2023

Leases [Abstract]

Lease Costs [Table Text Block]

The components of lease expense were as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands)
Operating lease cost	$	3,264	$	3,585	$	6,581	$	7,146
Finance lease cost
Amortization of right-of-use assets	619		621		1,237		1,246
Interest on lease liabilities	560		587		1,120		1,175
Variable lease cost	1,377		1,087		2,762		2,122
Short-term lease cost	1,478		1,340		3,029		2,652
Sublease income	(111)		(112)		(164)		(224)
Total lease cost	$	7,187	$	7,108	$	14,565	$	14,117

Lease Supplemental Cash Flow [Table Text Block]

Supplemental cash flow information related to leases was as follows:

	Six Months Ended June 30
	2023		2022
	(thousands)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	6,706	$	6,932
Operating cash flows from finance leases	1,118		1,173
Financing cash flows from finance leases	904		838
Right-of-use assets obtained in exchange for lease obligations
Operating leases	3,578		4,997
Finance leases	—		—

Lessee, Weighted-average Term and Discount Rate [Table Text Block]

Other information related to leases was as follows:

	June 30, 2023		December 31, 2022
Weighted-average remaining lease term (years)
Operating leases	7		7
Finance leases	14		14
Weighted-average discount rate
Operating leases	6.1	%	6.0	%
Finance leases	7.6	%	7.6	%

Minimum Lease Payment Requirements for Operating Lease Liability [Table Text Block]

As of June 30, 2023, our minimum lease payment requirements for noncancelable operating and finance leases are as follows:

	Operating Leases		Finance Leases
	(thousands)
Remainder of 2023	$	6,697	$	2,035
2024	12,472		4,052
2025	10,844		3,735
2026	7,673		3,581
2027	6,970		3,649
Thereafter	26,644		33,086
Total future minimum lease payments	71,300		50,138
Less: interest	(14,599)		(19,187)
Total lease obligations	56,701		30,951
Less: current obligations	(9,917)		(1,878)
Long-term lease obligations	$	46,784	$	29,073

Minimum Lease Payment Requirements for Finance Lease Liability [Table Text Block]

As of June 30, 2023, our minimum lease payment requirements for noncancelable operating and finance leases are as follows:

	Operating Leases		Finance Leases
	(thousands)
Remainder of 2023	$	6,697	$	2,035
2024	12,472		4,052
2025	10,844		3,735
2026	7,673		3,581
2027	6,970		3,649
Thereafter	26,644		33,086
Total future minimum lease payments	71,300		50,138
Less: interest	(14,599)		(19,187)
Total lease obligations	56,701		30,951
Less: current obligations	(9,917)		(1,878)
Long-term lease obligations	$	46,784	$	29,073

XML

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Compensation Related Costs [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 six months ended June 30, 2023:

	PSUs			RSUs
	Number of shares	Weighted Average Grant-Date Fair Value		Number of shares	Weighted Average Grant-Date Fair Value
Outstanding, December 31, 2022	317,854	$	51.46	155,339	$	65.17
Granted	93,282	69.33		115,252	69.34
Performance condition adjustment (a)	39,873	79.80		—	—
Vested	(154,794)	40.61		(87,632)	60.64
Forfeited	(5,399)	68.55		(3,200)	70.32
Outstanding, June 30, 2023	290,816	$	66.54	179,759	$	69.96

_______________________________

(a)    Represents additional PSUs granted during the six months ended June 30, 2023, related to above-target achievement of the 2022 performance condition described above.

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 June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands)
PSUs	$	2,577	$	1,695	$	4,391	$	3,001
RSUs	1,617		1,317		3,127		2,402
Total	$	4,194	$	3,012	$	7,518	$	5,403

XML

Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Sales by Product Line [Table Text Block]

Wood Products and BMD segment sales to external customers, including related parties, by product line, are as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(millions)
Wood Products (a)
LVL (b)	$	14.2	$	(9.5)	$	21.6	$	(7.8)
I-joists (b)	9.3		(12.5)		14.0		(14.7)
Other engineered wood products (b)	9.8		13.1		17.2		24.9
Plywood and veneer	93.8		112.1		185.1		273.3
Lumber	23.7		20.9		47.2		38.6
Byproducts	23.1		19.3		47.4		38.3
Other	4.8		3.5		11.3		8.7
	178.7		146.9		343.9		361.3
Building Materials Distribution
Commodity	613.7		956.3		1,161.2		2,058.1
General line	647.5		700.5		1,181.0		1,315.8
Engineered wood products	375.4		474.4		673.5		869.1
	1,636.5		2,131.2		3,015.7		4,243.0
	$	1,815.2	$	2,278.1	$	3,359.5	$	4,604.4

 ___________________________________  

(a)    Amounts represent sales to external customers. Sales are calculated after intersegment sales eliminations to our BMD segment.

(b)    Sales of EWP to external customers are net of the cost of all EWP rebates and sales allowances provided at various stages of the supply chain (including distributors, dealers, and homebuilders). For both the six months ended June 30, 2023 and 2022, approximately 78% of Wood Products' EWP sales volumes were to our BMD segment.

Segment information [Table Text Block]

An analysis of our operations by segment is as follows:

	Three Months Ended June 30				Six Months Ended June 30
	2023		2022		2023		2022
	(thousands)
Net sales by segment
Wood Products	$	530,273	$	536,030	$	967,701	$	1,094,974
Building Materials Distribution	1,636,538		2,131,200		3,015,780		4,243,033
Intersegment eliminations (a)	(351,592)		(389,158)		(623,933)		(733,653)
Total net sales	$	1,815,219	$	2,278,072	$	3,359,548	$	4,604,354
Segment operating income
Wood Products	$	104,035	$	154,101	$	173,430	$	344,217
Building Materials Distribution	98,550		154,308		168,235		380,200
Total segment operating income	202,585		308,409		341,665		724,417
Unallocated corporate costs	(12,610)		(11,334)		(24,088)		(21,714)
Income from operations	$	189,975	$	297,075	$	317,577	$	702,703

___________________________________ 

(a)    Primarily represents intersegment sales from our Wood Products segment to our BMD segment.

XML

Nature of Operations and Consolidation (Details)	6 Months Ended
	Jun. 30, 2023 segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of Reportable Segments	2

XML

Summary of Significant Accounting Policies:Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Revenue from External Customer [Line Items]
Customer Rebates and Allowances	$ 97.0		$ 97.0		$ 92.9
Building Materials Distribution [Member] | Shipping and Handling [Member]
Revenue from External Customer [Line Items]
Cost of Goods and Services Sold	$ 60.3	$ 56.0	$ 113.8	$ 112.3

XML

Summary of Significant Accounting Policies:Vendor Rebates and Allowances (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Vendor Rebates and Allowances	$ 8.5	$ 17.8

XML

Summary of Significant Accounting Policies:Leases (Details)	6 Months Ended
	Jun. 30, 2023
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

XML

Summary of Significant Accounting Policies:Inventory Valuation (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Inventory, Net [Abstract]
Finished goods and work in process	$ 605,967	$ 596,328
Logs	47,763	54,921
Other raw materials and supplies	49,303	46,302
Inventories	$ 703,033	$ 697,551

XML

Summary of Significant Accounting Policies:Property and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,661,217	$ 1,603,033
Less accumulated depreciation	(876,655)	(833,010)
Property and equipment, net	784,562	770,023
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	64,020	60,211
Buildings [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	246,206	231,087
Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	71,144	69,832
Mobile equipment, information technology, and office furniture [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	226,136	210,666
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,005,229	989,338
Construction in progress [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 48,482	$ 41,899

XML

Summary of Significant Accounting Policies:Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Reported Value Measurement [Member] | 4.875% Senior Notes Due 2030 [Member]
Financial Instruments [Line Items]
Fixed-rate debt	$ 400.0	$ 400.0
Level 2 [Member] | Estimate of Fair Value Measurement [Member] | 4.875% Senior Notes Due 2030 [Member]
Financial Instruments [Line Items]
Fixed-rate debt	360.0	348.5
Money Market Funds [Member] | Fair Value, Recurring [Member] | Level 1 [Member]
Financial Instruments [Line Items]
Cash equivalents, fair value	$ 1,053.8	$ 954.4

XML

Summary of Significant Accounting Policies:Interest Rate Risk and Interest Rate Swaps (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2023 USD ($) Derivative	Dec. 31, 2022 USD ($)	Feb. 28, 2022 USD ($)
Interest Rate Derivatives [Line Items]
Long-term debt	$ 444,836	$ 444,392
Interest Rate Swap [Member]
Interest Rate Derivatives [Line Items]
Number of Derivative Instrument | Derivative	1
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	$ 4,300	$ 4,800
Interest Rate Swap - $50 million notional amount fixed at 0.41% | Not Designated as Hedging Instrument [Member]
Interest Rate Derivatives [Line Items]
Interest rate swaps, notional amount			$ 50,000
Interest rate swaps, fixed interest rate			0.41%
ABL Term Loan Due 2027
Interest Rate Derivatives [Line Items]
Long-term debt	$ 50,000
ABL Term Loan Due 2027 | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate
Interest Rate Derivatives [Line Items]
Debt Instrument, Description of Variable Rate Basis	one-month SOFR
Debt Instrument, Credit Spread Adjustment on Variable Rate	0.10%
ABL Term Loan Due 2027 | Term Secured Overnight Financing Rate (SOFR)
Interest Rate Derivatives [Line Items]
Debt Instrument, Description of Variable Rate Basis	one-month term SOFR
Debt Instrument, Credit Spread Adjustment on Variable Rate	0.10%

XML

Summary of Significant Accounting Policies:Concentration of Credit Risk (Details) - Accounts Receivable [Member] - Credit Concentration Risk [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Customer One [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	19.00%	17.00%
Customer Two [Member]
Concentration Risk [Line Items]
Concentration Risk, Percentage	13.00%	14.00%

XML

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Tax Disclosure [Abstract]
Income tax provision	$ 49,447	$ 73,886	$ 82,722	$ 172,752
Effective income tax rate (as a percent)	25.30%	25.30%	25.40%	24.90%
Statutory U.S. income tax rate (as a percent)	21.00%	21.00%	21.00%	21.00%
Income taxes paid, net			$ 46,600	$ 149,100

XML

Net Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net income	$ 146,320	$ 96,733	$ 218,111	$ 302,600	$ 243,053	$ 520,711
Computation of basic and diluted net income per common share
Weighted average common shares outstanding during the period (for basic calculation)	39,675		39,544		39,634	39,509
Dilutive effect of other potential common shares	159		219		184	253
Weighted average common shares and potential common shares (for diluted calculation)	39,834		39,763		39,818	39,762
Net income per common share - Basic	$ 3.69		$ 5.52		$ 6.13	$ 13.18
Net income per common share - Diluted	$ 3.67		$ 5.49		$ 6.10	$ 13.10
Stock awards [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive stock awards			100		100	100

XML

Acquisition (Details) - Wood Products Coastal Acquisition - USD ($) $ in Millions	5 Months Ended
	Dec. 31, 2022	Jul. 25, 2022
Business Combination [Line Items]
Business Acquisition, Percentage of Voting Interests Acquired		100.00%
Purchase price of acquisitions	$ 515.2
Purchase price, post-closing adjustment	$ 1.6

XML

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Goodwill [Abstract]
Goodwill	$ 137,958	$ 137,958
Building Materials Distribution [Member]
Goodwill [Abstract]
Goodwill	11,792	11,792
Wood Products [Member]
Goodwill [Abstract]
Goodwill	$ 126,166	$ 126,166

XML

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Indefinite-Lived Intangible Assets [Line Items]
Intangible Assets, Gross (Excluding Goodwill)	$ 175,650		$ 175,650		$ 175,650
Intangible Assets, Net (Excluding Goodwill)	152,834		152,834		161,433
Finite-Lived Intangible Assets [Line Items]
Amortization of Intangible Assets	4,300	$ 300	8,600	$ 600
Finite-Lived Intangible Assets, Accumulated Amortization	(22,816)		(22,816)		(14,217)
Trademarks and Trade Names
Indefinite-Lived Intangible Assets [Line Items]
Trade names and Trademarks, Gross carrying amount	8,900		8,900
Total Indefinite-Lived Intangible Assets (Excluding Goodwill)	9,600		9,600		9,600
Intangible Assets, Net (Excluding Goodwill)	8,958		$ 8,958		9,308
Trademarks and Trade Names
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life			1 year
Finite-Lived Intangible Assets, Accumulated Amortization	(642)		$ (642)		(292)
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Acquired Finite-Lived Intangible Assets, Weighted Average Useful Life			10 years
Finite-Lived Intangible Assets, Gross	166,050		$ 166,050		166,050
Finite-Lived Intangible Assets, Accumulated Amortization	(22,174)		(22,174)		(13,925)
Finite-Lived Intangible Assets, Net	$ 143,876		$ 143,876		$ 152,125

XML

Debt:Summary Table (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Deferred financing costs	$ (5,164)	$ (5,608)
Long-term debt	444,836	444,392
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	0	0
ABL Term Loan Due 2027
Debt Instrument [Line Items]
Long-term Debt, Gross	50,000	50,000
Long-term debt	50,000
4.875% Senior Notes Due 2030 [Member]
Debt Instrument [Line Items]
Long-term Debt, Gross	$ 400,000	$ 400,000

XML

Debt Asset-Based Credit Facility (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Sep. 09, 2022
Asset Based Credit Facility [Member]
Line of Credit Facility [Line Items]
Fixed charge coverage ratio requirement, if availability falls below 10% of line cap (as a percent)	100.00%
Threshold of availability as a percentage of line cap, 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	$ 395,900
Dividend restriction, single threshold, percentage of line cap	20.00%
Dividend restriction, single threshold, amount	$ 75,000
Dividend restriction, combination thresholds, percentage of line cap	15.00%
Dividend restriction, combination thresholds, amount	$ 55,000
Dividend restriction, combination thresholds, fixed-charge coverage ratio (as a percent)	100.00%
Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Maximum borrowing capacity			$ 400,000
Commitment fee rate (as a percentage)	0.20%
Amount outstanding on Revolving Credit Facility	$ 0	$ 0
Letters of credit outstanding	$ 4,100	$ 3,800
Revolving Credit Facility [Member] | Term Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Debt Instrument, Credit Spread Adjustment on Variable Rate	0.10%
Revolving Credit Facility [Member] | Term Secured Overnight Financing Rate (SOFR) | Minimum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable interest rate	1.25%
Revolving Credit Facility [Member] | Term Secured Overnight Financing Rate (SOFR) | 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%
ABL Term Loan Due 2027
ABL Term Loan [Abstract]
Debt Instrument, Face Amount			$ 50,000
Debt Instrument, Interest Rate During Period	6.58%
Debt Instrument, Interest Rate During Period With Patronage Credits	5.60%
ABL Term Loan Due 2027 | Term Secured Overnight Financing Rate (SOFR)
Line of Credit Facility [Line Items]
Debt Instrument, Credit Spread Adjustment on Variable Rate	0.10%
ABL Term Loan Due 2027 | Term Secured Overnight Financing Rate (SOFR) | Minimum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable interest rate	1.75%
ABL Term Loan Due 2027 | Term Secured Overnight Financing Rate (SOFR) | Maximum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable interest rate	2.00%
ABL Term Loan Due 2027 | Base Rate [Member] | Minimum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable interest rate	0.75%
ABL Term Loan Due 2027 | Base Rate [Member] | Maximum [Member]
Line of Credit Facility [Line Items]
Basis spread on variable interest rate	1.00%

XML

Debt:2030 Notes (Details) - 4.875% Senior Notes Due 2030 [Member] - Senior Notes [Member] - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jul. 27, 2020
Debt Instrument [Line Items]
Debt Instrument, Face Amount		$ 400,000
Interest rate		4.875%
Dividend restriction, interest coverage ratio (as a percent)	350.00%

XML

Debt:Cash Paid for Interest (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Debt Disclosure [Abstract]
Interest Paid	$ 11.1	$ 11.3

XML

Leases:Costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Lease, Cost [Abstract]
Operating lease cost	$ 3,264	$ 3,585	$ 6,581	$ 7,146
Amortization of right-of-use assets	619	621	1,237	1,246
Interest on lease liabilities	560	587	1,120	1,175
Variable lease cost	1,377	1,087	2,762	2,122
Short-term lease cost	1,478	1,340	3,029	2,652
Sublease income	(111)	(112)	(164)	(224)
Total lease cost	$ 7,187	$ 7,108	$ 14,565	$ 14,117

XML

Leases:Other Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Lessee Disclosure [Abstract]
Operating cash flows from operating leases	$ 6,706	$ 6,932
Operating cash flows from finance leases	1,118	1,173
Financing cash flows from finance leases	904	838
Right-of-use assets obtained in exchange for lease obligations, operating leases	3,578	4,997
Right-of-use assets obtained in exchange for lease obligations, finance leases	$ 0	$ 0
Weighted-average remaining lease term (years), operating leases	7 years		7 years
Weighted-average remaining lease term (years), finance leases	14 years		14 years
Weighted-average discount rate, percent, operating leases	6.10%		6.00%
Weighted average discount rate, percent, finance leases	7.60%		7.60%
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Remainder of 2023	$ 6,697
2024	12,472
2025	10,844
2026	7,673
2027	6,970
Thereafter	26,644
Total future minimum lease payments	71,300
Less: interest	(14,599)
Total lease obligations	56,701
Less: current obligations	(9,917)
Long-term lease obligations	46,784		$ 48,668
Finance Lease, Liability, Payment, Due [Abstract]
Remainder of 2023	2,035
2024	4,052
2025	3,735
2026	3,581
2027	3,649
Thereafter	33,086
Total future minimum lease payments	50,138
Less: interest	(19,187)
Total lease obligations	30,951
Less: current obligations	(1,878)
Long-term lease obligations	$ 29,073		$ 30,022
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Current
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other Liabilities, Current

XML

Stock-Based Compensation (Details) $ / shares in Units, $ in Thousands		3 Months Ended				6 Months Ended		12 Months Ended
		Jun. 30, 2023 USD ($) $ / shares shares	Mar. 31, 2023 stock_awards $ / shares shares	Jun. 30, 2022 USD ($)	Mar. 31, 2022 stock_awards	Jun. 30, 2023 USD ($) tranch $ / shares shares	Jun. 30, 2022 USD ($) shares	Dec. 31, 2022 $ / shares shares
Stock-Based Compensation [Abstract]
Number of types of stock-based awards granted (in types) | stock_awards			2		2
Fair market value of awards | $						$ 16,800	$ 12,000
Stock-based compensation expense | $		$ 4,194		$ 3,012		7,518	5,403
Tax benefit from compensation expense | $						1,900	1,300
Unrecognized compensation expense | $		25,800				$ 25,800
Unrecognized compensation, period for recognition						2 years 1 month 6 days
Performance Shares [Member]
Stock-Based Compensation [Abstract]
Stock-based compensation expense | $		$ 2,577		1,695		$ 4,391	3,001
Number of shares [Abstract]
Outstanding, December 31, 2022			317,854			317,854
Granted						93,282
Performance condition adjustment (a)	[1]					39,873
Vested						(154,794)
Forfeited						(5,399)
Outstanding, June 30, 2023		290,816				290,816		317,854
Weighted Average Grant Date Fair Value [Abstract]
Outstanding, December 31, 2022 | $ / shares			$ 51.46			$ 51.46
Granted | $ / shares						69.33
Performance condition adjustment (a) | $ / shares	[1]					79.80
Vested | $ / shares						40.61
Forfeited | $ / shares						68.55
Outstanding, June 30, 2023 | $ / shares		$ 66.54				$ 66.54		$ 51.46
Restricted Stock Units (RSUs) [Member]
Stock-Based Compensation [Abstract]
Stock-based compensation expense | $		$ 1,617		$ 1,317		$ 3,127	$ 2,402
Number of shares [Abstract]
Outstanding, December 31, 2022			155,339			155,339
Granted						115,252
Performance condition adjustment (a)						0
Vested						(87,632)
Forfeited						(3,200)
Outstanding, June 30, 2023		179,759				179,759		155,339
Weighted Average Grant Date Fair Value [Abstract]
Outstanding, December 31, 2022 | $ / shares			$ 65.17			$ 65.17
Granted | $ / shares						69.34
Performance condition adjustment (a) | $ / shares						0
Vested | $ / shares						60.64
Forfeited | $ / shares						70.32
Outstanding, June 30, 2023 | $ / shares		$ 69.96				$ 69.96		$ 65.17
Officers and Other Employees and Nonemployment directors | Restricted Stock Units (RSUs) [Member]
Number of shares [Abstract]
Granted						115,252	86,164
Nonemployee Directors [Member] | Restricted Stock Units (RSUs) [Member]
Stock-Based Compensation [Abstract]
Vesting period (in years)						1 year
Officers and other employees [Member] | Performance Shares [Member]
Number of shares [Abstract]
Granted						93,282	66,180
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
Officer [Member] | Performance Shares [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								152.00%
Vesting period (in years)						3 years
Other employees [Member] | Performance Shares [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%
Performance Shares Target Percentage Earned, Other Employees								200.00%
Number of equal tranches for annual vesting (in tranches) | tranch						3

[1] Represents additional PSUs granted during the six months ended June 30, 2023, related to above-target achievement of the 2022 performance condition described above.

XML

Stockholders' Equity:Shares and Dividends (Details) - $ / shares		3 Months Ended				6 Months Ended
	Jul. 27, 2023	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Subsequent Event [Line Items]
Dividends declared per common share		$ 3.15	$ 0.15	$ 2.62	$ 0.12	$ 3.30	$ 2.74
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends Payable, Date Declared	Jul. 27, 2023
Dividends declared per common share	$ 0.20
Dividends Payable, Date to be Paid	Sep. 15, 2023
Dividends Payable, Date of Record	Sep. 01, 2023

XML

Stockholders' Equity:Stock Repurchase (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2023	Jul. 28, 2022
Equity, Class of Treasury Stock [Line Items]
Treasury Stock, Value	$ 57	$ 1,482
ShareRepurchaseProgram
Equity, Class of Treasury Stock [Line Items]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased				1,500,000
Treasury stock, shares purchased			25,678
Treasury Stock, Value			$ 1,500
Treasury Stock Acquired, Average Cost Per Share			$ 59.91
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	1,971,311		1,971,311

XML

Transactions With Related Party (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Related Party Transaction [Line Items]
Sales	$ 1,815,219	$ 2,278,072	$ 3,359,548	$ 4,604,354
Unconsolidated variable interest entity [Member]
Related Party Transaction [Line Items]
Sales	3,100	3,500	6,100	7,200
Cost of sales from related party	$ 21,100	$ 23,500	$ 41,200	$ 44,300
LouisianaTimberProcurementCompanyLLC [Member] | Unconsolidated variable interest entity [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%

XML

Segment Sales to External Customers by Product Line (Details) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($) segment	Jun. 30, 2022 USD ($)
Segment Reporting [Abstract]
Number of Reportable Segments | segment				2
Sales to external customer [Line Items]
Sales		$ 1,815,219	$ 2,278,072	$ 3,359,548	$ 4,604,354
Wood Products [Member]
Sales to external customer [Line Items]
Sales	[1]	178,700	146,900	$ 343,900	$ 361,300
Intersegment EWP Sales Volumes As Percentage to Total EWP Sales Volumes				78.00%	78.00%
Wood Products [Member] | Laminated Veneer Lumber [Member]
Sales to external customer [Line Items]
Sales	[1],[2]	14,200	(9,500)	$ 21,600	$ (7,800)
Wood Products [Member] | I-joists [Member]
Sales to external customer [Line Items]
Sales	[1],[2]	9,300	(12,500)	14,000	(14,700)
Wood Products [Member] | Other engineered wood products [Member]
Sales to external customer [Line Items]
Sales	[1],[2]	9,800	13,100	17,200	24,900
Wood Products [Member] | Plywood and veneer [Member]
Sales to external customer [Line Items]
Sales	[1]	93,800	112,100	185,100	273,300
Wood Products [Member] | Lumber [Member]
Sales to external customer [Line Items]
Sales	[1]	23,700	20,900	47,200	38,600
Wood Products [Member] | Byproducts [Member]
Sales to external customer [Line Items]
Sales	[1]	23,100	19,300	47,400	38,300
Wood Products [Member] | Other [Member]
Sales to external customer [Line Items]
Sales	[1]	4,800	3,500	11,300	8,700
Building Materials Distribution [Member]
Sales to external customer [Line Items]
Sales		1,636,500	2,131,200	3,015,700	4,243,000
Building Materials Distribution [Member] | Commodity product line [Member]
Sales to external customer [Line Items]
Sales		613,700	956,300	1,161,200	2,058,100
Building Materials Distribution [Member] | General line [Member]
Sales to external customer [Line Items]
Sales		647,500	700,500	1,181,000	1,315,800
Building Materials Distribution [Member] | Engineered wood products [Member]
Sales to external customer [Line Items]
Sales		$ 375,400	$ 474,400	$ 673,500	$ 869,100

[1] Amounts represent sales to external customers. Sales are calculated after intersegment sales eliminations to our BMD segment.

[2] Sales of EWP to external customers are net of the cost of all EWP rebates and sales allowances provided at various stages of the supply chain (including distributors, dealers, and homebuilders). For both the six months ended June 30, 2023 and 2022, approximately 78% of Wood Products' EWP sales volumes were to our BMD segment.

XML

Segment Information (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Sales		$ 1,815,219	$ 2,278,072	$ 3,359,548	$ 4,604,354
Income from operations		189,975	297,075	317,577	702,703
Operating Segments [Member]
Segment Reporting Information [Line Items]
Income from operations		202,585	308,409	341,665	724,417
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
Sales	[1]	(351,592)	(389,158)	(623,933)	(733,653)
Corporate, Non-Segment [Member]
Segment Reporting Information [Line Items]
Income from operations		(12,610)	(11,334)	(24,088)	(21,714)
Wood Products [Member]
Segment Reporting Information [Line Items]
Sales	[2]	178,700	146,900	343,900	361,300
Wood Products [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Sales		530,273	536,030	967,701	1,094,974
Income from operations		104,035	154,101	173,430	344,217
Building Materials Distribution [Member]
Segment Reporting Information [Line Items]
Sales		1,636,500	2,131,200	3,015,700	4,243,000
Building Materials Distribution [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Sales		1,636,538	2,131,200	3,015,780	4,243,033
Income from operations		$ 98,550	$ 154,308	$ 168,235	$ 380,200

[1] Primarily represents intersegment sales from our Wood Products segment to our BMD segment.

[2] Amounts represent sales to external customers. Sales are calculated after intersegment sales eliminations to our BMD segment.