bcc-20200630
000132858112/312020Q2FALSE12022-03-30annual00013285812020-01-012020-06-30xbrli:shares00013285812020-07-24iso4217:USD00013285812020-04-012020-06-3000013285812019-04-012019-06-3000013285812019-01-012019-06-30iso4217:USDxbrli:shares00013285812020-06-3000013285812019-12-3100013285812018-12-3100013285812019-06-300001328581us-gaap:CommonStockMember2019-12-310001328581us-gaap:TreasuryStockCommonMember2019-12-310001328581us-gaap:AdditionalPaidInCapitalMember2019-12-310001328581us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310001328581us-gaap:RetainedEarningsMember2019-12-310001328581us-gaap:RetainedEarningsMember2020-01-012020-03-3100013285812020-01-012020-03-310001328581us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310001328581us-gaap:CommonStockMember2020-01-012020-03-310001328581us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310001328581us-gaap:CommonStockMember2020-03-310001328581us-gaap:TreasuryStockCommonMember2020-03-310001328581us-gaap:AdditionalPaidInCapitalMember2020-03-310001328581us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310001328581us-gaap:RetainedEarningsMember2020-03-3100013285812020-03-310001328581us-gaap:RetainedEarningsMember2020-04-012020-06-300001328581us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-04-012020-06-300001328581us-gaap:AdditionalPaidInCapitalMember2020-04-012020-06-300001328581us-gaap:CommonStockMember2020-06-300001328581us-gaap:TreasuryStockCommonMember2020-06-300001328581us-gaap:AdditionalPaidInCapitalMember2020-06-300001328581us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300001328581us-gaap:RetainedEarningsMember2020-06-300001328581us-gaap:CommonStockMember2018-12-310001328581us-gaap:TreasuryStockCommonMember2018-12-310001328581us-gaap:AdditionalPaidInCapitalMember2018-12-310001328581us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-310001328581us-gaap:RetainedEarningsMember2018-12-310001328581us-gaap:RetainedEarningsMember2019-01-012019-03-3100013285812019-01-012019-03-310001328581us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310001328581us-gaap:CommonStockMember2019-01-012019-03-310001328581us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-310001328581us-gaap:CommonStockMember2019-03-310001328581us-gaap:TreasuryStockCommonMember2019-03-310001328581us-gaap:AdditionalPaidInCapitalMember2019-03-310001328581us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310001328581us-gaap:RetainedEarningsMember2019-03-3100013285812019-03-310001328581us-gaap:RetainedEarningsMember2019-04-012019-06-300001328581us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-04-012019-06-300001328581us-gaap:CommonStockMember2019-04-012019-06-300001328581us-gaap:AdditionalPaidInCapitalMember2019-04-012019-06-300001328581us-gaap:CommonStockMember2019-06-300001328581us-gaap:TreasuryStockCommonMember2019-06-300001328581us-gaap:AdditionalPaidInCapitalMember2019-06-300001328581us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300001328581us-gaap:RetainedEarningsMember2019-06-30bcc:segment0001328581us-gaap:ShippingAndHandlingMemberbcc:BuildingMaterialsDistributionMember2020-04-012020-06-300001328581us-gaap:ShippingAndHandlingMemberbcc:BuildingMaterialsDistributionMember2019-04-012019-06-300001328581us-gaap:ShippingAndHandlingMemberbcc:BuildingMaterialsDistributionMember2020-01-012020-06-300001328581us-gaap:ShippingAndHandlingMemberbcc:BuildingMaterialsDistributionMember2019-01-012019-06-300001328581srt:MaximumMember2020-06-300001328581us-gaap:LandMember2020-06-300001328581us-gaap:LandMember2019-12-310001328581us-gaap:BuildingMember2020-06-300001328581us-gaap:BuildingMember2019-12-310001328581bcc:BuildingandLeaseholdImprovementsMember2020-06-300001328581bcc:BuildingandLeaseholdImprovementsMember2019-12-310001328581bcc:MobileequipmentinformationtechnologyandofficefurnitureMember2020-06-300001328581bcc:MobileequipmentinformationtechnologyandofficefurnitureMember2019-12-310001328581us-gaap:MachineryAndEquipmentMember2020-06-300001328581us-gaap:MachineryAndEquipmentMember2019-12-310001328581us-gaap:ConstructionInProgressMember2020-06-300001328581us-gaap:ConstructionInProgressMember2019-12-310001328581us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2020-06-300001328581us-gaap:FairValueMeasurementsRecurringMemberus-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Member2019-12-310001328581us-gaap:CarryingReportedAmountFairValueDisclosureMemberbcc:A5.625SeniorNotesDue2024Member2020-06-300001328581us-gaap:CarryingReportedAmountFairValueDisclosureMemberbcc:A5.625SeniorNotesDue2024Member2019-12-310001328581us-gaap:FairValueInputsLevel2Memberbcc:A5.625SeniorNotesDue2024Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2020-06-300001328581us-gaap:FairValueInputsLevel2Memberbcc:A5.625SeniorNotesDue2024Memberus-gaap:EstimateOfFairValueFairValueDisclosureMember2019-12-310001328581bcc:TermLoansDue2024and2026Member2020-06-300001328581bcc:Interestrateswap50and45MillionNotionalAmountfixedat1.007and1.256Memberus-gaap:NondesignatedMember2019-12-310001328581bcc:Interestrateswap50and45MillionNotionalAmountfixedat1.007and1.256Memberus-gaap:NondesignatedMember2020-06-300001328581bcc:InterestRateSwap50millionnotionalamountfixedat1.007Memberus-gaap:NondesignatedMember2020-06-300001328581bcc:InterestRateSwap45millionnotionalamountfixedat1.256Memberus-gaap:NondesignatedMember2020-06-30xbrli:pure0001328581bcc:InterestRateSwap50MillionNotionalAmountFixedAt039Memberus-gaap:NondesignatedMember2020-06-300001328581bcc:InterestRateSwap45MillionNotionalAmountFixedAt0431Memberus-gaap:NondesignatedMember2020-06-300001328581us-gaap:OtherNoncurrentLiabilitiesMemberus-gaap:FairValueInputsLevel2Memberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2020-06-300001328581us-gaap:FairValueInputsLevel2Memberus-gaap:OtherNoncurrentAssetsMemberus-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2019-12-310001328581us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMemberbcc:CustomerOneMember2020-01-012020-06-300001328581bcc:CustomerTwoMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMember2020-01-012020-06-300001328581us-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMemberbcc:CustomerOneMember2019-01-012019-12-310001328581bcc:CustomerTwoMemberus-gaap:CreditConcentrationRiskMemberus-gaap:AccountsReceivableMember2019-01-012019-12-310001328581srt:MinimumMember2020-06-300001328581us-gaap:StockCompensationPlanMember2020-04-012020-06-300001328581us-gaap:StockCompensationPlanMember2019-04-012019-06-300001328581us-gaap:StockCompensationPlanMember2020-01-012020-06-300001328581us-gaap:StockCompensationPlanMember2019-01-012019-06-300001328581bcc:CurtailmentofIjoistProductionatRoxboroNCFacilityMemberMember2020-02-202020-02-200001328581bcc:CurtailmentofIjoistProductionatRoxboroNCFacilityMemberMember2020-03-312020-03-310001328581bcc:CurtailmentofIjoistProductionatRoxboroNCFacilityMemberMember2020-01-012020-06-300001328581bcc:CurtailmentofIjoistProductionatRoxboroNCFacilityMemberMemberbcc:LossoncurtailmentoffacilityMember2020-01-012020-06-300001328581us-gaap:RevolvingCreditFacilityMember2020-06-300001328581us-gaap:RevolvingCreditFacilityMember2019-12-310001328581bcc:TermLoanDue2025Member2020-06-300001328581bcc:TermLoanDue2025Member2019-12-310001328581bcc:TermLoanDue2026Member2020-06-300001328581bcc:TermLoanDue2026Member2019-12-310001328581bcc:A5.625SeniorNotesDue2024Member2020-06-300001328581bcc:A5.625SeniorNotesDue2024Member2019-12-310001328581us-gaap:RevolvingCreditFacilityMember2015-05-150001328581us-gaap:RevolvingCreditFacilityMember2020-03-130001328581bcc:TermLoanDue2025Member2020-03-130001328581bcc:AssetBasedCreditFacilityMember2020-01-012020-06-300001328581bcc:AssetBasedCreditFacilityMember2020-06-300001328581srt:MinimumMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMember2020-01-012020-06-300001328581srt:MaximumMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMember2020-01-012020-06-300001328581srt:MinimumMemberus-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMember2020-01-012020-06-300001328581srt:MaximumMemberus-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMember2020-01-012020-06-300001328581us-gaap:RevolvingCreditFacilityMember2020-01-012020-06-300001328581bcc:TermLoanDue2025Membersrt:MinimumMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-06-300001328581bcc:TermLoanDue2025Membersrt:MaximumMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-01-012020-06-300001328581bcc:TermLoanDue2025Membersrt:MinimumMemberus-gaap:BaseRateMember2020-01-012020-06-300001328581bcc:TermLoanDue2025Membersrt:MaximumMemberus-gaap:BaseRateMember2020-01-012020-06-300001328581bcc:TermLoanDue2025Member2020-01-012020-06-300001328581bcc:TermLoanDue2026Member2016-03-300001328581bcc:TermLoanDue2026Member2020-01-012020-06-300001328581bcc:TermLoanDue2026Member2016-12-310001328581bcc:TermLoanDue2026Member2016-01-012016-12-31bcc:Integer90001328581srt:MinimumMemberus-gaap:LondonInterbankOfferedRateLIBORMemberbcc:TermLoanDue2026Member2020-01-012020-06-300001328581srt:MaximumMemberus-gaap:LondonInterbankOfferedRateLIBORMemberbcc:TermLoanDue2026Member2020-01-012020-06-300001328581srt:MinimumMemberbcc:TermLoanDue2026Memberus-gaap:BaseRateMember2020-01-012020-06-300001328581srt:MaximumMemberbcc:TermLoanDue2026Memberus-gaap:BaseRateMember2020-01-012020-06-300001328581bcc:A5.625SeniorNotesDue2024Member2016-08-290001328581bcc:A5.625SeniorNotesDue2024Member2020-01-012020-06-300001328581us-gaap:SeniorNotesMemberbcc:A4875SeniorNotesDue2030Memberus-gaap:SubsequentEventMember2020-07-270001328581bcc:A4875SeniorNotesDue2030Memberus-gaap:SubsequentEventMember2020-07-270001328581bcc:TermLoanDue2026Memberus-gaap:SubsequentEventMember2020-07-272020-07-270001328581us-gaap:PensionPlansDefinedBenefitMember2020-04-012020-06-300001328581us-gaap:PensionPlansDefinedBenefitMember2019-04-012019-06-300001328581us-gaap:PensionPlansDefinedBenefitMember2020-01-012020-06-300001328581us-gaap:PensionPlansDefinedBenefitMember2019-01-012019-06-300001328581us-gaap:PensionPlansDefinedBenefitMember2020-06-30bcc:Integer7bcc:stock_awards0001328581us-gaap:PerformanceSharesMember2020-01-012020-06-300001328581srt:OfficerMember2020-01-012020-06-300001328581bcc:OtheremployeesMember2020-01-012020-06-300001328581us-gaap:PerformanceSharesMember2019-01-012019-06-300001328581srt:OfficerMember2019-01-012019-12-310001328581bcc:OtheremployeesMember2019-01-012019-12-31bcc:tranch0001328581us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-06-300001328581us-gaap:RestrictedStockUnitsRSUMember2019-01-012019-06-300001328581us-gaap:RestrictedStockUnitsRSUMemberbcc:OfficersandotheremployeesMember2020-01-012020-06-300001328581us-gaap:RestrictedStockUnitsRSUMemberbcc:NonemployeeDirectorsMember2020-01-012020-06-300001328581us-gaap:PerformanceSharesMember2019-12-310001328581us-gaap:RestrictedStockUnitsRSUMember2019-12-310001328581us-gaap:PerformanceSharesMember2020-06-300001328581us-gaap:RestrictedStockUnitsRSUMember2020-06-300001328581us-gaap:PerformanceSharesMember2020-04-012020-06-300001328581us-gaap:PerformanceSharesMember2019-04-012019-06-300001328581us-gaap:RestrictedStockUnitsRSUMember2020-04-012020-06-300001328581us-gaap:RestrictedStockUnitsRSUMember2019-04-012019-06-300001328581us-gaap:SubsequentEventMember2020-07-302020-07-300001328581bcc:LouisianaTimberProcurementCompanyLLCMember2020-01-012020-06-300001328581us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberbcc:LouisianaTimberProcurementCompanyLLCMemberbcc:PackagingCorporationofAmericaPCAMember2020-01-012020-06-300001328581us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-04-012020-06-300001328581us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2019-04-012019-06-300001328581us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2020-01-012020-06-300001328581us-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2019-01-012019-06-300001328581bcc:WoodProductsMemberbcc:LaminatedVeneerLumberMember2020-04-012020-06-300001328581bcc:WoodProductsMemberbcc:LaminatedVeneerLumberMember2019-04-012019-06-300001328581bcc:WoodProductsMemberbcc:LaminatedVeneerLumberMember2020-01-012020-06-300001328581bcc:WoodProductsMemberbcc:LaminatedVeneerLumberMember2019-01-012019-06-300001328581bcc:WoodProductsMemberbcc:IjoistsMember2020-04-012020-06-300001328581bcc:WoodProductsMemberbcc:IjoistsMember2019-04-012019-06-300001328581bcc:WoodProductsMemberbcc:IjoistsMember2020-01-012020-06-300001328581bcc:WoodProductsMemberbcc:IjoistsMember2019-01-012019-06-300001328581bcc:WoodProductsMemberbcc:OtherEngineeredWoodProductsMember2020-04-012020-06-300001328581bcc:WoodProductsMemberbcc:OtherEngineeredWoodProductsMember2019-04-012019-06-300001328581bcc:WoodProductsMemberbcc:OtherEngineeredWoodProductsMember2020-01-012020-06-300001328581bcc:WoodProductsMemberbcc:OtherEngineeredWoodProductsMember2019-01-012019-06-300001328581bcc:PlywoodAndVeneerMemberbcc:WoodProductsMember2020-04-012020-06-300001328581bcc:PlywoodAndVeneerMemberbcc:WoodProductsMember2019-04-012019-06-300001328581bcc:PlywoodAndVeneerMemberbcc:WoodProductsMember2020-01-012020-06-300001328581bcc:PlywoodAndVeneerMemberbcc:WoodProductsMember2019-01-012019-06-300001328581bcc:WoodProductsMemberbcc:LumberMember2020-04-012020-06-300001328581bcc:WoodProductsMemberbcc:LumberMember2019-04-012019-06-300001328581bcc:WoodProductsMemberbcc:LumberMember2020-01-012020-06-300001328581bcc:WoodProductsMemberbcc:LumberMember2019-01-012019-06-300001328581bcc:WoodProductsMemberbcc:ByproductsMember2020-04-012020-06-300001328581bcc:WoodProductsMemberbcc:ByproductsMember2019-04-012019-06-300001328581bcc:WoodProductsMemberbcc:ByproductsMember2020-01-012020-06-300001328581bcc:WoodProductsMemberbcc:ByproductsMember2019-01-012019-06-300001328581bcc:OtherWoodProductsMemberbcc:WoodProductsMember2020-04-012020-06-300001328581bcc:OtherWoodProductsMemberbcc:WoodProductsMember2019-04-012019-06-300001328581bcc:OtherWoodProductsMemberbcc:WoodProductsMember2020-01-012020-06-300001328581bcc:OtherWoodProductsMemberbcc:WoodProductsMember2019-01-012019-06-300001328581bcc:WoodProductsMember2020-04-012020-06-300001328581bcc:WoodProductsMember2019-04-012019-06-300001328581bcc:WoodProductsMember2020-01-012020-06-300001328581bcc:WoodProductsMember2019-01-012019-06-300001328581bcc:CommodityProductLineMemberbcc:BuildingMaterialsDistributionMember2020-04-012020-06-300001328581bcc:CommodityProductLineMemberbcc:BuildingMaterialsDistributionMember2019-04-012019-06-300001328581bcc:CommodityProductLineMemberbcc:BuildingMaterialsDistributionMember2020-01-012020-06-300001328581bcc:CommodityProductLineMemberbcc:BuildingMaterialsDistributionMember2019-01-012019-06-300001328581bcc:GeneralLineMemberbcc:BuildingMaterialsDistributionMember2020-04-012020-06-300001328581bcc:GeneralLineMemberbcc:BuildingMaterialsDistributionMember2019-04-012019-06-300001328581bcc:GeneralLineMemberbcc:BuildingMaterialsDistributionMember2020-01-012020-06-300001328581bcc:GeneralLineMemberbcc:BuildingMaterialsDistributionMember2019-01-012019-06-300001328581bcc:BuildingMaterialsDistributionMemberbcc:EngineeredWoodProductsMember2020-04-012020-06-300001328581bcc:BuildingMaterialsDistributionMemberbcc:EngineeredWoodProductsMember2019-04-012019-06-300001328581bcc:BuildingMaterialsDistributionMemberbcc:EngineeredWoodProductsMember2020-01-012020-06-300001328581bcc:BuildingMaterialsDistributionMemberbcc:EngineeredWoodProductsMember2019-01-012019-06-300001328581bcc:BuildingMaterialsDistributionMember2020-04-012020-06-300001328581bcc:BuildingMaterialsDistributionMember2019-04-012019-06-300001328581bcc:BuildingMaterialsDistributionMember2020-01-012020-06-300001328581bcc:BuildingMaterialsDistributionMember2019-01-012019-06-300001328581bcc:WoodProductsandBuildingMaterialsDistributionMember2020-04-012020-06-300001328581bcc:WoodProductsandBuildingMaterialsDistributionMember2019-04-012019-06-300001328581bcc:WoodProductsandBuildingMaterialsDistributionMember2020-01-012020-06-300001328581bcc:WoodProductsandBuildingMaterialsDistributionMember2019-01-012019-06-300001328581us-gaap:OperatingSegmentsMemberbcc:WoodProductsMember2020-04-012020-06-300001328581us-gaap:OperatingSegmentsMemberbcc:WoodProductsMember2019-04-012019-06-300001328581us-gaap:OperatingSegmentsMemberbcc:WoodProductsMember2020-01-012020-06-300001328581us-gaap:OperatingSegmentsMemberbcc:WoodProductsMember2019-01-012019-06-300001328581us-gaap:OperatingSegmentsMemberbcc:BuildingMaterialsDistributionMember2020-04-012020-06-300001328581us-gaap:OperatingSegmentsMemberbcc:BuildingMaterialsDistributionMember2019-04-012019-06-300001328581us-gaap:OperatingSegmentsMemberbcc:BuildingMaterialsDistributionMember2020-01-012020-06-300001328581us-gaap:OperatingSegmentsMemberbcc:BuildingMaterialsDistributionMember2019-01-012019-06-300001328581us-gaap:IntersegmentEliminationMember2020-04-012020-06-300001328581us-gaap:IntersegmentEliminationMember2019-04-012019-06-300001328581us-gaap:IntersegmentEliminationMember2020-01-012020-06-300001328581us-gaap:IntersegmentEliminationMember2019-01-012019-06-300001328581us-gaap:OperatingSegmentsMember2020-04-012020-06-300001328581us-gaap:OperatingSegmentsMember2019-04-012019-06-300001328581us-gaap:OperatingSegmentsMember2020-01-012020-06-300001328581us-gaap:OperatingSegmentsMember2019-01-012019-06-300001328581us-gaap:CorporateNonSegmentMember2020-04-012020-06-300001328581us-gaap:CorporateNonSegmentMember2019-04-012019-06-300001328581us-gaap:CorporateNonSegmentMember2020-01-012020-06-300001328581us-gaap:CorporateNonSegmentMember2019-01-012019-06-300001328581bcc:CurtailmentofIjoistProductionatRoxboroNCFacilityMemberMemberbcc:WoodProductsMember2020-01-012020-06-300001328581bcc:A5.625SeniorNotesDue2024Memberus-gaap:SubsequentEventMember2020-07-272020-07-27

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 endedJune 30, 2020
  
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)
 
Delaware20-1496201
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
 
1111 West Jefferson Street Suite 300
BoiseIdaho 83702-5389
(Address of principal executive offices) (Zip Code)
 
(208) 384-6161
(Registrant's telephone number, including area code)


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

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareBCCNew York Stock Exchange
 
There were 39,196,619 shares of the registrant's common stock, $0.01 par value per share, outstanding on July 24, 2020.



Table of Contents
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

ii

Table of Contents
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
 2020201920202019
 (thousands, except per-share data)
Sales$1,242,760  $1,230,081  $2,413,294  $2,272,167  
Costs and expenses    
Materials, labor, and other operating expenses (excluding depreciation)1,048,902  1,049,655  2,041,172  1,947,477  
Depreciation and amortization19,899  19,454  55,231  38,671  
Selling and distribution expenses103,566  98,866  203,029  185,892  
General and administrative expenses18,755  16,786  34,839  33,461  
Loss on curtailment of facility38    1,707    
Other (income) expense, net(170) 188  (1) (120) 
 1,190,990  1,184,949  2,335,977  2,205,381  
Income from operations51,770  45,132  77,317  66,786  
Foreign currency exchange gain (loss)409  248  (464) 410  
Pension expense (excluding service costs)(302) (290) (689) (589) 
Interest expense(6,633) (6,486) (13,054) (12,923) 
Interest income190  416  845  908  
Change in fair value of interest rate swaps(514) (1,551) (2,828) (2,534) 
 (6,850) (7,663) (16,190) (14,728) 
Income before income taxes44,920  37,469  61,127  52,058  
Income tax provision(11,334) (9,751) (15,341) (12,951) 
Net income$33,586  $27,718  $45,786  $39,107  
Weighted average common shares outstanding:
Basic39,312  39,087  39,238  38,986  
Diluted39,387  39,199  39,381  39,185  
Net income per common share:
Basic$0.85  $0.71  $1.17  $1.00  
Diluted$0.85  $0.71  $1.16  $1.00  
Dividends declared per common share$0.10  $0.09  $0.20  $0.18  
 
See accompanying condensed notes to unaudited quarterly consolidated financial statements.

1

Table of Contents


Boise Cascade Company
Consolidated Statements of Comprehensive Income
(unaudited)
Three Months Ended
June 30
Six Months Ended
June 30
2020201920202019
(thousands)
Net income$33,586  $27,718  $45,786  $39,107  
Other comprehensive income (loss), net of tax
  Defined benefit pension plans
Amortization of actuarial (gain) loss, net of tax of $51, $(11), $102, and $(22), respectively
150  (33) 301  (65) 
Effect of settlements, net of tax of $, $, $22 and $, respectively
    64    
Other comprehensive income (loss), net of tax150  (33) 365  (65) 
Comprehensive income$33,736  $27,685  $46,151  $39,042  

See accompanying condensed notes to unaudited quarterly consolidated financial statements.



2

Table of Contents


Boise Cascade Company
Consolidated Balance Sheets
(unaudited)
 June 30,
2020
December 31,
2019
 (thousands)
ASSETS  
Current  
Cash and cash equivalents$361,436  $285,237  
Receivables 
Trade, less allowances of $890 and $591
350,673  215,894  
Related parties417  568  
Other9,772  15,184  
Inventories456,129  497,596  
Prepaid expenses and other14,716  8,285  
Total current assets1,193,143  1,022,764  
Property and equipment, net446,773  476,949  
Operating lease right-of-use assets64,676  64,228  
Finance lease right-of-use assets30,101  21,798  
Timber deposits14,212  12,287  
Goodwill60,382  60,382  
Intangible assets, net17,186  17,797  
Deferred income taxes7,620  7,952  
Other assets6,982  9,194  
Total assets$1,841,075  $1,693,351  
 
See accompanying condensed notes to unaudited quarterly consolidated financial statements.



3

Table of Contents
Boise Cascade Company
Consolidated Balance Sheets (continued)
(unaudited)
June 30,
2020
December 31,
2019
(thousands, except per-share data)
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable
Trade$320,839  $222,930  
Related parties1,835  1,624  
Accrued liabilities 
Compensation and benefits78,386  83,943  
Income taxes payable7,391    
Interest payable6,696  6,723  
Other70,140  69,772  
Total current liabilities485,287  384,992  
Debt
Long-term debt440,178  440,544  
Other
Compensation and benefits42,205  45,586  
Operating lease liabilities, net of current portion58,913  58,029  
Finance lease liabilities, net of current portion31,816  23,419  
Deferred income taxes25,333  26,694  
Other long-term liabilities17,635  12,757  
 175,902  166,485  
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, 44,564 and 44,353 shares issued, respectively
446  444  
Treasury stock, 5,367 shares at cost
(138,909) (138,909) 
Additional paid-in capital533,406  533,345  
Accumulated other comprehensive loss(49,883) (50,248) 
Retained earnings394,648  356,698  
Total stockholders' equity739,708  701,330  
Total liabilities and stockholders' equity$1,841,075  $1,693,351  

See accompanying condensed notes to unaudited quarterly consolidated financial statements.


4

Table of Contents

Boise Cascade Company
Consolidated Statements of Cash Flows
(unaudited)
 Six Months Ended
June 30
 20202019
 (thousands)
Cash provided by (used for) operations  
Net income$45,786  $39,107  
Items in net income not using (providing) cash
Depreciation and amortization, including deferred financing costs and other56,295  39,821  
Stock-based compensation3,345  4,069  
Pension expense1,023  911  
Deferred income taxes(1,501) 5,629  
Change in fair value of interest rate swaps2,828  2,534  
Loss on curtailment of facility (excluding severance)1,476    
Other164  (33) 
Decrease (increase) in working capital, net of acquisitions
Receivables(129,532) (93,977) 
Inventories41,102  13,324  
Prepaid expenses and other(6,989) (4,773) 
Accounts payable and accrued liabilities95,505  45,355  
Pension contributions(1,062) (927) 
Income taxes payable8,616  16,735  
Other1,220  (923) 
Net cash provided by operations118,276  66,852  
Cash provided by (used for) investment  
Expenditures for property and equipment(28,849) (32,824) 
Acquisitions of businesses and facilities  (15,675) 
Proceeds from sale of facilities  2,493  
Proceeds from sales of assets and other406  1,395  
Net cash used for investment(28,443) (44,611) 
Cash provided by (used for) financing
Borrowings of long-term debt, including revolving credit facility  5,500  
Payments of long-term debt, including revolving credit facility  (5,500) 
Dividends paid on common stock(8,562) (7,562) 
Tax withholding payments on stock-based awards(3,309) (3,574) 
Other(1,763) (369) 
Net cash used for financing(13,634) (11,505) 
Net increase in cash and cash equivalents76,199  10,736  
Balance at beginning of the period285,237  191,671  
Balance at end of the period$361,436  $202,407  
 
See accompanying condensed notes to unaudited quarterly consolidated financial statements.

5

Table of Contents

Boise Cascade Company
Consolidated Statements of Stockholders' Equity
(unaudited)
 Common StockTreasury StockAdditional Paid-In CapitalAccumulated Other Comprehensive LossRetained EarningsTotal
 SharesAmountSharesAmount
 (thousands)
Balance at December 31, 201944,353  $444  5,367  $(138,909) $533,345  $(50,248) $356,698  $701,330  
Net income12,200  12,200  
Other comprehensive income215  215  
Common stock issued211  2  2  
Stock-based compensation1,674  1,674  
Common stock dividends ($0.10 per share)
(3,866) (3,866) 
Tax withholding payments on stock-based awards(3,309) (3,309) 
Proceeds from exercise of stock options27  27  
Other(2) (2) 
Balance at March 31, 202044,564  $446  5,367  $(138,909) $531,735  $(50,033) $365,032  $708,271  
Net income33,586  33,586  
Other comprehensive income150  150  
Stock-based compensation1,671  1,671  
Common stock dividends ($0.10 per share)
(3,970) (3,970) 
Balance at June 30, 202044,564  $446  5,367  $(138,909) $533,406  $(49,883) $394,648  $739,708  

See accompanying condensed notes to unaudited quarterly consolidated financial statements.


6

Table of Contents

Boise Cascade Company
Consolidated Statements of Stockholders' Equity (continued)
(unaudited)
 Common StockTreasury StockAdditional Paid-In CapitalAccumulated Other Comprehensive LossRetained EarningsTotal
 SharesAmountSharesAmount
 (thousands)
Balance at December 31, 201844,076  $441  5,367  $(138,909) $528,654  $(47,652) $330,056  $672,590  
Net income11,389  11,389  
Other comprehensive loss(32) (32) 
Common stock issued265  2  2  
Stock-based compensation2,200  2,200  
Common stock dividends ($0.09 per share)
(3,561) (3,561) 
Tax withholding payments on stock-based awards(3,569) (3,569) 
Other(2) (2) 
Balance at March 31, 201944,341  $443  5,367  $(138,909) $527,283  $(47,684) $337,884  $679,017  
Net income27,718  27,718  
Other comprehensive loss(33) (33) 
Common stock issued1      
Stock-based compensation1,869  1,869  
Common stock dividends ($0.09 per share)
(3,545) (3,545) 
Tax withholding payments on stock-based awards(5) (5) 
Balance at June 30, 201944,342  $443  5,367  $(138,909) $529,147  $(47,717) $362,057  $705,021  

See accompanying condensed notes to unaudited quarterly consolidated financial statements.

7

Table of Contents

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 (U.S.) wholesale distributor of building products.

        We operate our business using two reportable segments: (1) Wood Products, which primarily manufactures EWP and plywood, and (2) Building Materials Distribution, 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 2019 Form 10-K and the other reports we file with the Securities and Exchange Commission (SEC).

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 2019 Form 10-K.

Use of Estimates

        The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates include the valuation of accounts receivable, inventories, goodwill, intangible assets, and other long-lived assets; legal contingencies; guarantee obligations; indemnifications; assumptions used in retirement, medical, and workers' compensation benefits; assumptions used in the determination of right-of-use assets and related lease liabilities; stock-based compensation; fair value measurements; income taxes; and vendor and customer rebates, among others. These estimates and assumptions are based on management's best estimates and judgment. Management evaluates its estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which management believes to be reasonable under the circumstances. We adjust such estimates and assumptions when facts and circumstances dictate. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates resulting from continuing changes in the economic environment will be reflected in the consolidated financial statements in future periods.  

8

Table of Contents
Revenue Recognition

        Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. For revenue disaggregated by major product line for each reportable segment, see Note 12, Segment Information.

        Fees for shipping and handling charged to customers for sales transactions are included in "Sales" in our Consolidated Statements of Operations. When control over products has transferred to the customer, we have elected to recognize costs related to shipping and handling as fulfillment costs. For our Wood Products segment, costs related to shipping and handling are included in "Materials, labor, and other operating expenses (excluding depreciation)" in our Consolidated Statements of Operations. In our Wood Products segment, we view our shipping and handling costs as a cost of the manufacturing process and the movement of product to our end customers. For our Building Materials Distribution segment, costs related to shipping and handling of $44.2 million and $43.4 million, for the three months ended June 30, 2020 and 2019, respectively, and $84.9 million and $80.3 million for the six months ended June 30, 2020 and 2019, respectively, are included in "Selling and distribution expenses" in our Consolidated Statements of Operations. In our Building Materials Distribution segment, our activities relate to the purchase and resale of finished product, and excluding shipping and handling costs from “Materials, labor, and other operating expenses (excluding depreciation)” provides us a clearer view of our operating performance and the effectiveness of our sales and purchasing functions.

Customer Rebates and Allowances

        Rebates are provided to our customers and our customers' customers based on the volume of their purchases, among other factors such as customer loyalty, conversion, and commitment. We provide the rebates to increase the sell-through of our products. Rebates are generally estimated based on the expected amount to be paid and recorded as a decrease in "Sales." At June 30, 2020, and December 31, 2019, we had $45.4 million and $49.4 million, respectively, of rebates payable to our customers recorded in "Accrued liabilities, Other" on our Consolidated Balance Sheets. We adjust our estimate of revenue at the earlier of when the probability of rebates paid changes or when the amounts become fixed. There have not been significant changes to our estimates of rebates, although it is reasonably possible that a change in the estimate may occur.

Vendor Rebates and Allowances
 
We receive rebates and allowances from our vendors under a number of different programs, including vendor marketing programs. At June 30, 2020, and December 31, 2019, we had $6.9 million and $9.2 million, respectively, of vendor rebates and allowances recorded in "Receivables, Other" on our Consolidated Balance Sheets. Rebates and allowances received from our vendors are recognized as a reduction of "Materials, labor, and other operating expenses (excluding depreciation)" when the product is sold, unless the rebates and allowances are linked to a specific incremental cost to sell a vendor's product. Amounts received from vendors that are linked to specific selling and distribution expenses are recognized as a reduction of "Selling and distribution expenses" in the period the expense is incurred.

Leases

        We primarily lease land, building, and equipment under operating and finance leases. We determine if an arrangement is a lease at inception and assess lease classification as either operating or finance at lease inception or upon modification. Substantially all of our leases with initial terms greater than one year are for real estate, including distribution centers, corporate headquarters, land, and other office space. Substantially all of these lease agreements have fixed payment terms based on the passage of time and are recorded in our Building Materials Distribution segment. Many of our leases include fixed escalation clauses, renewal options and/or termination options that are factored into our determination of lease term and lease payments when appropriate. Renewal options generally range from one to ten years with fixed payment terms similar to those in the original lease agreements. Some lease agreements provide us with the option to purchase the leased property at market value. Our lease agreements do not contain any residual value guarantees.

        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

Table of Contents
give consideration to publicly available interest rates for instruments with similar characteristics, including credit rating, term, and collateralization.
        
        For purposes of determining straight-line rent expense, the lease term is calculated from the date we first take possession of the facility, including any periods of free rent and any renewal option periods we are reasonably certain of exercising. Variable lease expense generally includes reimbursement of actual costs for common area maintenance, property taxes, and insurance on leased real estate and are recorded as incurred. Most of our operating lease expense is recorded in "Selling and distribution expenses" in our Consolidated Statements of Operations. In addition, we do not separate lease and non-lease components for all of our leases.

        Our short-term leases primarily include equipment rentals with lease terms on a month-to-month basis, which provide for our seasonal needs and flexibility in the use of equipment. Our short-term leases also include certain real estate for which either party has the right to cancel upon providing notice of 30 to 90 days. We do not recognize ROU assets or lease liabilities for short-term leases.

Inventories
 
Inventories included the following (work in process is not material):
 
 June 30,
2020
December 31,
2019
 (thousands)
Finished goods and work in process $383,202  $413,020  
Logs 33,145  45,574  
Other raw materials and supplies 39,782  39,002  
 $456,129  $497,596  

Property and Equipment
 
Property and equipment consisted of the following asset classes:
 
 June 30,
2020
December 31,
2019
 (thousands)
Land$38,274  $39,304  
Buildings144,538  140,008  
Improvements61,955  61,187  
Mobile equipment, information technology, and office furniture171,438  165,445  
Machinery and equipment 677,307  666,467  
Construction in progress 30,645  34,846  
 1,124,157  1,107,257  
Less accumulated depreciation(677,384) (630,308) 
 $446,773  $476,949  

Long-Lived Asset Impairment

        We review long-lived assets for impairment when events or changes in circumstances indicate that the carrying amount of assets may not be recoverable (triggering event). An impairment of long-lived assets exists when the carrying value is not recoverable through future undiscounted cash flows from operations and when the carrying value of an asset or asset group exceeds its fair value. No triggering event was identified during the quarter ended June 30, 2020.
10

Table of Contents

Fair Value

        Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy under GAAP gives the highest priority to quoted market prices (Level 1) and the lowest priority to unobservable inputs (Level 3). In general, and where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value (Level 1). If quoted prices in active markets for identical assets or liabilities are not available to determine fair value, we use quoted prices for similar assets and liabilities or inputs that are observable either directly or indirectly (Level 2). If quoted prices for identical or similar assets are not available or are unobservable, we may use internally developed valuation models, whose inputs include bid prices, and third-party valuations utilizing underlying asset assumptions (Level 3).

Financial Instruments
 
        Our financial instruments are cash and cash equivalents, accounts receivable, accounts payable, long-term debt, and interest rate swaps. Our cash is recorded at cost, which approximates fair value, and our cash equivalents are money market funds. As of June 30, 2020, and December 31, 2019, we held $333.9 million and $259.5 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, 2020, and December 31, 2019, the book value of our fixed-rate debt for each period was $350.0 million, and the fair value was estimated to be $353.5 million and $364.7 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 term loans is based on market conditions such as the London Interbank Offered Rate (LIBOR) or a base rate. Because the interest rate on the term loans is based on current market conditions, we believe that the estimated fair value of the outstanding balance on our term loans approximates book value. As discussed below, we also have interest rate swaps to mitigate our variable interest rate exposure, the fair value of which is measured based on Level 2 inputs.

Interest Rate Risk and Interest Rate Swaps

        We are exposed to interest rate risk arising from fluctuations in variable-rate LIBOR on our term loans and when we have loan amounts outstanding on our Revolving Credit Facility. At June 30, 2020, we had $95.0 million of variable-rate debt outstanding based on one-month LIBOR. Our objective is to limit the variability of interest payments on our debt. To meet this objective, we enter into receive-variable, pay-fixed interest rate swaps to change the variable-rate cash flow exposure to fixed-rate cash flows. In accordance with our risk management strategy, we actively monitor our interest rate exposure and use derivative instruments from time to time to manage the related risk. We do not speculate using derivative instruments.

        At June 30, 2020, we had four interest rate swap agreements. Under the interest rate swaps, we receive one-month LIBOR-based variable interest rate payments and make fixed interest rate payments, thereby fixing the interest rate on $95.0 million of variable rate debt exposure. Payments on two interest rate swaps, entered into in 2016, with notional principal amounts of $50.0 million and $45.0 million are due on a monthly basis at an annual fixed rate of 1.007% and 1.256%, respectively, and expire in February 2022 and March 2022, respectively (Initial Swaps). During the three months ended June 30, 2020, we entered into two forward interest rate swap agreements which commence on the expiration date of the Initial Swaps. Payments on these two interest rate swaps with notional principal amounts of $50.0 million and $45.0 million will be due on a monthly basis at an annual fixed rate of 0.39% and 0.431%, respectively, and expire in June 2025 and December 2025, respectively.

The interest rate swap agreements were not designated as cash flow hedges, and as a result, all changes in the fair value are recognized in "Change in fair value of interest rate swaps" in our Consolidated Statements of Operations rather than through other comprehensive income. At June 30, 2020, we recorded a long-term liability of $2.0 million in "Other long-term liabilities" on our Consolidated Balance Sheets, representing the fair value of the interest rate swap agreements. At December 31, 2019, we recorded a long-term asset of $0.8 million in "Other assets" on our Consolidated Balance Sheets, representing the fair value of the interest rate swap agreements. The swaps were valued based on observable inputs for similar assets and liabilities and other observable inputs for interest rates and yield curves (Level 2 inputs).

Concentration of Credit Risk
 
We are exposed to credit risk related to customer accounts receivable. In order to manage credit risk, we consider customer concentrations and current economic trends and monitor the creditworthiness of significant customers based on
11

Table of Contents
ongoing credit evaluations. At June 30, 2020, receivables from two customers accounted for approximately 16% and 13% of total receivables. At December 31, 2019, receivables from these two customers accounted for approximately 14% and