x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the fiscal year ended December 31, 2012
|
Commission
File Number
|
|
Exact Name of Registrant
as Specified in Its Charter
|
|
State or Other Jurisdiction of Incorporation or Organization
|
|
I.R.S. Employer Identification No.
|
001-33541
|
|
Boise Inc.
|
|
Delaware
|
|
20-8356960
|
333-166926-04
|
|
BZ Intermediate Holdings LLC
|
|
Delaware
|
|
27-1197223
|
Title of Each Class
|
|
Name of Each Exchange On Which Registered
|
Common Stock, $0.0001 par value
|
|
New York Stock Exchange
|
|
Boise Inc.
|
|
Yes
¨
|
|
No
x
|
|
BZ Intermediate Holdings LLC
|
|
Yes
¨
|
|
No
x
|
|
Boise Inc.
|
|
Yes
¨
|
|
No
x
|
|
BZ Intermediate Holdings LLC
|
|
Yes
¨
|
|
No
x
|
|
Boise Inc.
|
|
Yes
x
|
|
No
¨
|
|
BZ Intermediate Holdings LLC
|
|
Yes
x
|
|
No
¨
|
|
Boise Inc.
|
|
Yes
x
|
|
No
¨
|
|
BZ Intermediate Holdings LLC
|
|
Yes
x
|
|
No
¨
|
|
Boise Inc.
|
|
Large accelerated filer
|
|
x
|
Accelerated filer
|
|
¨
|
|
|
|
Non-accelerated filer
|
|
¨
|
Smaller reporting company
|
|
¨
|
|
|
|
(Do not check if smaller reporting company)
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
BZ Intermediate Holdings LLC
|
|
Large accelerated filer
|
|
¨
|
Accelerated filer
|
|
¨
|
|
|
|
Non-accelerated filer
|
|
x
|
Smaller reporting company
|
|
¨
|
|
|
|
(Do not check if smaller reporting company)
|
|
|
|
|
Boise Inc.
|
|
Yes
¨
|
|
No
x
|
|
BZ Intermediate Holdings LLC
|
|
Yes
¨
|
|
No
x
|
|
PART I
|
|
|
|
|
Item 1.
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 1B.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
||
PART II
|
||
|
|
|
Item 5.
|
||
|
|
|
Item 6.
|
||
|
|
|
Item 7.
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
Item 7A.
|
||
|
|
|
Item 8.
|
||
|
|
|
|
||
|
||
|
|
|
|
|
|
|
||
|
||
|
||
|
||
|
4.
Acquisitions
|
|
|
||
|
6.
Income Taxes
|
|
|
||
|
8.
Debt
|
|
|
||
|
||
|
||
|
||
|
||
|
14.
Leases
|
|
|
||
|
||
|
||
|
||
|
||
|
||
|
|
|
|
||
|
|
|
Item 9.
|
||
|
|
|
Item 9A.
|
||
|
|
|
|
||
|
|
|
Item 9B.
|
||
|
||
PART III
|
||
|
|
|
Item 10.
|
||
|
|
|
Item 11.
|
||
|
|
|
Item 12.
|
||
|
|
|
Item 13.
|
||
|
|
|
Item 14.
|
||
|
||
PART IV
|
||
|
|
|
Item 15.
|
||
|
|
|
|
||
|
|
|
|
ITEM 1.
|
BUSINESS
|
|
Corporate Headquarters
|
|
|
|
|
|
|
|
Packaging
|
|
|
|
|
|
|
|
Paper
|
|
|
|
|
|
|
|
|
|
|
|
Boise Inc.
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BZ Intermediate Holdings LLC
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Boise Paper Holdings, L.L.C.
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Packaging Segment
|
|
Paper Segment
|
|
Corporate and Other Segment
|
•
|
Linerboard: paperboard, which when combined with corrugating medium is used in the manufacture of corrugated sheets and containers. The term containerboard is used to describe linerboard, corrugating medium, or a combination of the two. When combined, containerboard forms the base material used in the manufacture and production of corrugated sheets and containers.
|
•
|
Corrugated sheets: containerboard sheets that are sold primarily to converters that produce a variety of corrugated products.
|
•
|
Corrugated containers: corrugated sheets that have been fed through converting machines to create containers, which are used in the packaging of fresh fruit and vegetables, processed food, beverages, and other industrial and consumer products. Stock boxes are corrugated containers manufactured to pre-set dimensions.
|
•
|
Protective packaging products: these products include multi-material customized packaging solutions, which may utilize kraft paper-based honeycomb corrugated packaging, foamed plastics, and air pocket packing materials.
|
•
|
Newsprint: paper commonly used for printing newspapers, other publications, and advertising material.
|
|
Boise Inc.
|
|
|
Predecessor
|
||||||||||||||||||||
|
Year Ended December 31
|
|
|
January 1
Through
February 21,
2008
|
|
|||||||||||||||||||
|
2012
|
|
|
2011
(a) (b)
|
|
2010
|
|
2009
(c)
|
|
2008
(d)
|
|
|
||||||||||||
Sales
|
$
|
1,130.1
|
|
|
$
|
949.7
|
|
|
$
|
671.9
|
|
|
$
|
588.4
|
|
|
$
|
703.7
|
|
|
|
$
|
113.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment income before interest and taxes
|
101.6
|
|
|
105.0
|
|
|
65.0
|
|
|
67.1
|
|
|
21.1
|
|
|
|
5.7
|
|
||||||
Depreciation, amortization, and depletion
|
60.9
|
|
|
50.5
|
|
|
38.6
|
|
|
42.2
|
|
|
35.1
|
|
|
|
0.1
|
|
||||||
EBITDA (e)
|
$
|
162.5
|
|
|
$
|
155.5
|
|
|
$
|
103.6
|
|
|
$
|
109.3
|
|
|
$
|
56.2
|
|
|
|
$
|
5.7
|
|
(a)
|
The table above includes financial results for Tharco and Hexacomb since the acquisitions on March 1 and December 1, 2011, respectively.
|
(b)
|
The year ended December 31, 2011, includes $2.2 million of expense due to the write-up of inventories in connection with the Tharco purchase price allocation and $1.6 million of transaction-related costs. Transaction-related costs include expenses associated with transactions, whether consummated or not, and do not include integration costs.
|
(c)
|
The year ended December 31, 2009, includes approximately $61.6 million of income from alternative fuel mixture credits and $1.1 million of income related to the effect of energy hedges.
|
(d)
|
The year ended December 31, 2008, represents operations from February 22, 2008, through December 31, 2008. Results for the year include $19.8 million of charges for the planned cold outage and shoe press installation at our mill in DeRidder, Louisiana, $5.5 million of expense related to lost production and costs incurred as a result of Hurricanes Gustav and Ike, $2.8 million of expense due to the write-up of inventories in connection with the Acquisition, and $1.3 million of expense related to the effect of energy hedges.
|
(e)
|
Segment earnings before interest, taxes, depreciation, and amortization (EBITDA) is calculated as segment income before interest (interest income and interest expense), income tax provision (benefit), and depreciation, amortization, and depletion. EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and to decide how to allocate resources to segments. See "Part II, Item 6. Selected Financial Data" and "Note 17, Segment Information, of the Notes to Consolidated Financial Statements in Part II, Item 8. Financial Statements and Supplementary Data" of this Form 10-K for a description of our reasons for using EBITDA, for a discussion of the limitations of such a measure, and for a reconciliation of our EBITDA to net income (loss).
|
|
Boise Inc.
|
|
|
Predecessor
|
||||||||||||||
|
Year Ended December 31
|
|
|
January 1
Through
February 21,
2008
|
|
|||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
|
|||||||
Capacity (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Linerboard
|
608
|
|
|
605
|
|
|
610
|
|
|
610
|
|
|
600
|
|
|
|
|
|
Newsprint
|
235
|
|
|
230
|
|
|
225
|
|
|
225
|
|
|
410
|
|
|
|
|
|
|
843
|
|
|
835
|
|
|
835
|
|
|
835
|
|
|
1,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Production (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Linerboard
|
613
|
|
|
607
|
|
|
602
|
|
|
544
|
|
|
446
|
|
|
|
83
|
|
Newsprint
|
233
|
|
|
229
|
|
|
229
|
|
|
188
|
|
|
331
|
|
|
|
59
|
|
|
846
|
|
|
836
|
|
|
831
|
|
|
732
|
|
|
777
|
|
|
|
142
|
|
(a)
|
Capacity numbers are shown as of December 31 for the year presented. Capacity assumes production 24 hours per day, 365 days per year, less days allotted for planned maintenance and capital improvements. Accordingly, production can exceed calculated capacity under some operating conditions.
|
(b)
|
The year ended December 31, 2008, represents operations from February 22, 2008, through December 31, 2008.
|
|
Boise Inc.
|
|
|
Predecessor
|
||||||||||||||
|
Year Ended December 31
|
|
|
January 1
Through
February 21,
2008
|
|
|||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008 (c)
|
|
|
|||||||
Linerboard (a)
|
159
|
|
|
230
|
|
|
225
|
|
|
253
|
|
|
194
|
|
|
|
36
|
|
Newsprint
|
233
|
|
|
231
|
|
|
231
|
|
|
199
|
|
|
326
|
|
|
|
56
|
|
Corrugated containers and sheets (b)
|
10,079
|
|
|
8,720
|
|
|
6,735
|
|
|
5,963
|
|
|
5,337
|
|
|
|
914
|
|
(a)
|
Excludes intercompany sales.
|
(b)
|
Includes corrugated container and sheet volumes for Tharco and Hexacomb since the acquisitions on March 1 and December 1, 2011, respectively.
|
(c)
|
The year ended December 31, 2008, represents operations from February 22, 2008, through December 31, 2008.
|
•
|
Cut-size office papers: imaging papers for the office and home.
|
•
|
Printing and converting papers: papers used by commercial printers or converters to manufacture envelopes, forms, and other commercial paper products.
|
•
|
Label and release papers: these papers include label facestocks, as well as release liners, which our customers combine and convert to labels for use on consumer and commercial packaged products.
|
•
|
Corrugating medium: unbleached paperboard, which when corrugated and combined with linerboard, forms corrugated board — the key raw material in the manufacture of corrugated sheets and containers. Corrugating medium is also part of a broader category of products called containerboard.
|
•
|
Market pulp: pulp sold to customers in the open market for use in the manufacture of paper products.
|
|
Boise Inc.
|
|
|
Predecessor
|
||||||||||||||||||||
|
Year Ended December 31
|
|
|
January 1
Through
February 21,
2008
|
|
|||||||||||||||||||
|
2012
(a)
|
|
|
2011
|
|
2010
|
|
2009
(b)
|
|
|
2008
(c)
|
|
|
|||||||||||
Sales
|
$
|
1,468.3
|
|
|
$
|
1,496.5
|
|
|
$
|
1,458.3
|
|
|
$
|
1,420.0
|
|
|
$
|
1,403.7
|
|
|
|
$
|
253.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment income before interest and taxes
|
73.9
|
|
|
112.1
|
|
|
151.5
|
|
|
262.7
|
|
|
32.7
|
|
|
|
20.7
|
|
||||||
Depreciation, amortization, and depletion
|
87.7
|
|
|
89.5
|
|
|
87.4
|
|
|
85.1
|
|
|
71.7
|
|
|
|
0.3
|
|
||||||
EBITDA (d)
|
$
|
161.6
|
|
|
$
|
201.5
|
|
|
$
|
238.9
|
|
|
$
|
347.8
|
|
|
$
|
104.3
|
|
|
|
$
|
21.1
|
|
(a)
|
The year ended December 31, 2012, includes pretax charges totaling
$31.7 million
related primarily to ceasing paper production on our one remaining paper machine at our St. Helens, Oregon, paper mill.
|
(b)
|
The year ended December 31, 2009, includes approximately $149.9 million of income from alternative fuel mixture credits, $4.8 million of income related to the effect of energy hedges, and $5.8 million of expense associated with the
|
(c)
|
The year ended December 31, 2008, represents operations from February 22, 2008, through December 31, 2008, and includes $37.6 million of expense associated with the restructuring of the St. Helens, Oregon, mill, $7.4 million of expense due to the write-up of inventories in connection with the Acquisition, and $6.1 million of expense related to the impact of energy hedges.
|
(d)
|
Segment EBITDA is calculated as segment income before interest (interest income and interest expense), income tax provision (benefit), and depreciation, amortization, and depletion. EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and to decide how to allocate resources to segments. See "Part II, Item 6. Selected Financial Data" and "Note 17, Segment Information, of the Notes to Consolidated Financial Statements in Part II, Item 8. Financial Statements and Supplementary Data" of this Form 10-K for a description of our reasons for using EBITDA, for a discussion of the limitations of such a measure, and for a reconciliation of our EBITDA to net income (loss).
|
Location
|
|
Number of Machines
|
|
Capacity (a)
|
|
Production
|
|||
Jackson, Alabama
|
|
|
|
|
|
|
|||
Uncoated freesheet
|
|
2
|
|
|
495
|
|
|
477
|
|
International Falls, Minnesota
|
|
|
|
|
|
|
|||
Uncoated freesheet
|
|
4
|
|
|
533
|
|
|
535
|
|
Wallula, Washington
|
|
|
|
|
|
|
|||
Uncoated freesheet (b)
|
|
1
|
|
|
191
|
|
|
180
|
|
Corrugating medium
|
|
1
|
|
|
137
|
|
|
135
|
|
Market pulp (c)
|
|
1
|
|
|
162
|
|
|
120
|
|
St. Helens, Oregon (d)
|
|
|
|
|
|
|
|||
Uncoated freesheet
|
|
1
|
|
|
—
|
|
|
57
|
|
|
|
10
|
|
|
1,518
|
|
|
1,504
|
|
(a)
|
Capacity assumes production 24 hours per day, 365 days per year, less days allotted for planned maintenance and capital improvements. Accordingly, production can exceed calculated capacity under some operating conditions.
|
(b)
|
During
2012
, production of label and release papers accounted for approximately
87% of Wallula uncoated freesheet production, with office papers accounting for the remaining 13%.
|
(c)
|
In 2012, we reduced market pulp production to balance our production with the demand for our products and began utilizing more of our market pulp internally.
|
(d)
|
In December 2012, we ceased paper production on our one remaining paper machine at our St. Helens, Oregon, paper mill.
|
|
Boise Inc.
|
|
|
Predecessor
|
||||||||||||||
|
Year Ended December 31
|
|
|
January 1
Through February 21, 2008 |
||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008 (b)
|
|
|
|||||||
Capacity (a)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Uncoated freesheet
|
1,219
|
|
|
1,269
|
|
|
1,263
|
|
|
1,265
|
|
|
1,300
|
|
|
|
|
|
Corrugating medium
|
137
|
|
|
138
|
|
|
136
|
|
|
135
|
|
|
136
|
|
|
|
|
|
Market pulp
|
162
|
|
|
160
|
|
|
142
|
|
|
145
|
|
|
136
|
|
|
|
|
|
|
1,518
|
|
|
1,567
|
|
|
1,541
|
|
|
1,545
|
|
|
1,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Production
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Uncoated freesheet
|
1,249
|
|
|
1,221
|
|
|
1,229
|
|
|
1,198
|
|
|
1,204
|
|
|
|
208
|
|
Corrugating medium
|
135
|
|
|
135
|
|
|
127
|
|
|
126
|
|
|
118
|
|
|
|
19
|
|
Market pulp (c)
|
120
|
|
|
152
|
|
|
142
|
|
|
114
|
|
|
187
|
|
|
|
31
|
|
|
1,504
|
|
|
1,508
|
|
|
1,498
|
|
|
1,438
|
|
|
1,509
|
|
|
|
258
|
|
(a)
|
Capacity numbers shown are as of December 31 for the year presented. Capacity assumes production 24 hours per day, 365 days per year, less days allotted for planned maintenance and capital improvements. Accordingly, production can exceed calculated capacity under some operating conditions. Annual uncoated freesheet capacity at December 31, 2012, has been reduced by 60,000 tons due to the cessation of paper production at our St. Helens, Oregon, paper mill.
|
(b)
|
The year ended December 31, 2008, represents operations from February 22, 2008, through December 31, 2008.
|
(c)
|
In 2012, we reduced market pulp production to balance our production with the demand for our products and began utilizing more of our market pulp internally.
|
|
Boise Inc.
|
|
|
Predecessor
|
||||||||||||||
|
Year Ended December 31
|
|
|
January 1
Through February 21, 2008 |
||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
|
|||||||
Commodity
|
786
|
|
|
771
|
|
|
784
|
|
|
844
|
|
|
768
|
|
|
|
164
|
|
Premium and specialty
|
468
|
|
|
459
|
|
|
449
|
|
|
407
|
|
|
432
|
|
|
|
72
|
|
Uncoated freesheet
|
1,254
|
|
|
1,230
|
|
|
1,233
|
|
|
1,251
|
|
|
1,200
|
|
|
|
236
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Corrugating medium
|
135
|
|
|
135
|
|
|
127
|
|
|
127
|
|
|
118
|
|
|
|
19
|
|
Market pulp (a)
|
53
|
|
|
90
|
|
|
81
|
|
|
58
|
|
|
102
|
|
|
|
20
|
|
|
1,442
|
|
|
1,455
|
|
|
1,441
|
|
|
1,436
|
|
|
1,420
|
|
|
|
275
|
|
(a)
|
In 2012, we reduced market pulp production to balance our production with the demand for our products and began utilizing more of our market pulp internally.
|
|
Boise Inc.
|
|
|
Predecessor
|
||||||||||||||||||||
|
Year Ended December 31
|
|
|
January 1
Through
February 21,
2008
|
|
|||||||||||||||||||
|
2012
|
|
2011
(a)
|
|
|
2010
|
|
2009
(b)
|
|
|
2008
(c)
|
|
|
|||||||||||
Sales
|
$
|
68.9
|
|
|
$
|
68.3
|
|
|
$
|
65.4
|
|
|
$
|
63.9
|
|
|
$
|
67.7
|
|
|
|
$
|
8.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment loss before interest and taxes
|
(27.8
|
)
|
|
(25.9
|
)
|
|
(21.7
|
)
|
|
(21.5
|
)
|
|
(18.6
|
)
|
|
|
(3.2
|
)
|
||||||
Loss on extinguishment of debt
|
—
|
|
|
(2.3
|
)
|
|
(22.2
|
)
|
|
(44.1
|
)
|
|
—
|
|
|
|
—
|
|
||||||
Depreciation, amortization, and depletion
|
3.7
|
|
|
3.7
|
|
|
4.0
|
|
|
4.1
|
|
|
3.3
|
|
|
|
0.1
|
|
||||||
EBITDA (d)
|
$
|
(24.1
|
)
|
|
$
|
(24.4
|
)
|
|
$
|
(39.9
|
)
|
|
$
|
(61.4
|
)
|
|
$
|
(15.4
|
)
|
|
|
$
|
(3.1
|
)
|
(a)
|
The year ended December 31, 2011, includes $1.5 million of transaction-related costs, which include expenses associated with transactions, whether consummated or not, and do not include integration costs.
|
(b)
|
The year ended December 31, 2009, includes approximately $3.9 million of expense related to alternative fuel mixture credits.
|
(c)
|
The year ended December 31, 2008, represents operations from February 22, 2008, through December 31, 2008, and includes a $2.9 million gain on changes in supplemental pension plans.
|
(d)
|
Segment EBITDA is calculated as segment loss before interest (interest income and interest expense), income tax provision (benefit), and depreciation, amortization, and depletion. EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and to decide how to allocate resources to segments. See "Part II, Item 6. Selected Financial Data" and "Note 17, Segment Information, of the Notes to Consolidated Financial Statements in Part II, Item 8. Financial Statements and Supplementary Data" of this Form 10-K for a description of our reasons for using EBITDA, for a discussion of the limitations of such a measure, and for a reconciliation of our EBITDA to net income (loss).
|
ITEM 1A.
|
RISK FACTORS
|
•
|
Maintenance outages.
|
•
|
Prolonged power failures.
|
•
|
Equipment failure.
|
•
|
Disruption in the supply of raw materials, such as wood fiber, energy, or chemicals.
|
•
|
A chemical spill or release.
|
•
|
Closure because of environmental-related concerns.
|
•
|
Explosion of a boiler.
|
•
|
Labor difficulties.
|
•
|
Other operational problems.
|
•
|
The effect of a drought or reduced rainfall on our water supply.
|
•
|
Disruptions in the transportation infrastructure, including roads, bridges, railroad tracks, and tunnels.
|
•
|
Fires, floods, earthquakes, hurricanes, or other catastrophes.
|
•
|
Terrorism or threats of terrorism.
|
Item 1B.
|
UNRESOLVED STAFF COMMENTS
|
Item 2.
|
PROPERTIES
|
Packaging
|
|
Owned or Leased
|
|
Paper
|
|
Owned or Leased
|
|
|
|
|
|
|
|
Converting Operations
|
|
|
|
Manufacturing
|
|
|
Corrugated Containers
|
|
|
|
International Falls, MN
|
|
Owned
|
Burley, ID
|
|
Owned
|
|
Jackson, AL
|
|
Owned
|
Denver, CO
|
|
Leased
|
|
St. Helens, OR (a)
|
|
Owned
|
Nampa, ID
|
|
Owned
|
|
Wallula, WA
|
|
Owned
|
Salem, OR
|
|
Owned
|
|
Distribution
|
|
|
Salt Lake City, UT
|
|
Owned
|
|
Bensenville, IL
|
|
Leased
|
San Lorenzo, CA
|
|
Leased
|
|
Pico Rivera, CA
|
|
Leased
|
Santa Fe Springs, CA
|
|
Leased
|
|
|
|
|
Wallula, WA
|
|
Owned
|
|
Corporate
|
|
|
Corrugated Sheet Feeder
|
|
|
|
Boise, ID
|
|
Leased
|
Waco, TX
|
|
Owned
|
|
|
|
|
Corrugated Sheet Plants
|
|
|
|
|
|
|
Atlanta, GA
|
|
Leased
|
|
|
|
|
Seattle, WA
|
|
Leased
|
|
|
|
|
Sparks, NV
|
|
Leased
|
|
|
|
|
Protective Packaging
|
|
|
|
|
|
|
Amboise, France
|
|
Owned
|
|
|
|
|
Aoiz, Spain
|
|
Owned
|
|
|
|
|
Arlington, TX
|
|
Leased
|
|
|
|
|
Auburn, WA
|
|
Leased
|
|
|
|
|
Austin, TX
|
|
Leased
|
|
|
|
|
Ermelo, Netherlands
|
|
Owned/Leased
|
|
|
|
|
Fairfield, CA
|
|
Leased
|
|
|
|
|
Farmville, NC
|
|
Leased
|
|
|
|
|
Kalamazoo, MI
|
|
Leased
|
|
|
|
|
Monterrey, Mexico
|
|
Leased
|
|
|
|
|
North Haven, CT (b)
|
|
Leased
|
|
|
|
|
Santa Fe Springs, CA
|
|
Leased
|
|
|
|
|
Tillsonburg, ON, Canada
|
|
Leased
|
|
|
|
|
Trenton, IL
|
|
Owned
|
|
|
|
|
Linerboard and Newsprint
|
|
|
|
|
|
|
DeRidder, LA
|
|
Owned
|
|
|
|
|
Distribution
|
|
|
|
|
|
|
Dallas, TX
|
|
Leased
|
|
|
|
|
Phoenix, AZ
|
|
Leased
|
|
|
|
|
Portland, OR
|
|
Leased
|
|
|
|
|
Salt Lake City, UT
|
|
Leased
|
|
|
|
|
(a)
|
In December 2012, we ceased paper production on our one remaining paper machine at our St. Helens, Oregon, paper mill.
|
(b)
|
In the next 12 months,
lease will be up for renewal.
|
ITEM 3.
|
LEGAL PROCEEDINGS
|
ITEM 4.
|
MINE SAFETY DISCLOSURE
|
ITEM 5.
|
MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES
|
|
Market Price
|
|
Dividends
Declared
|
||||||||
Quarter
|
High
|
|
Low
|
|
|||||||
2012
|
|
|
|
|
|
||||||
Fourth
|
$
|
9.06
|
|
|
$
|
7.63
|
|
|
$
|
0.72
|
|
Third
|
8.93
|
|
|
6.86
|
|
|
—
|
|
|||
Second
|
8.21
|
|
|
6.48
|
|
|
—
|
|
|||
First
|
8.49
|
|
|
7.25
|
|
|
0.48
|
|
|||
Total
|
|
|
|
|
$
|
1.20
|
|
||||
2011
|
|
|
|
|
|
||||||
Fourth
|
$
|
7.12
|
|
|
$
|
4.71
|
|
|
$
|
—
|
|
Third
|
8.12
|
|
|
4.42
|
|
|
—
|
|
|||
Second
|
9.82
|
|
|
6.75
|
|
|
0.40
|
|
|||
First
|
9.55
|
|
|
8.10
|
|
|
—
|
|
|||
Total
|
|
|
|
|
$
|
0.40
|
|
|
Column
|
||||||||
|
A
|
|
B
|
|
C
|
||||
Plan Category
|
Number of Securities to Be Issued Upon Exercise of Outstanding Options, Warrants, and Rights (a)
|
|
Weighted Average Exercise Price of
Outstanding Options, Warrants, and Rights
|
|
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column A) (b)
|
||||
Equity compensation plans approved by securityholders
|
1,965,280
|
|
|
$
|
8.34
|
|
|
8,950,800
|
|
Equity compensation plans not approved by securityholders
|
N/A
|
|
|
N/A
|
|
|
N/A
|
|
|
Total
|
1,965,280
|
|
|
$
|
8.34
|
|
|
8,950,800
|
|
(a)
|
The reported amount includes the following outstanding awards that have been granted under the Boise Inc. Incentive and Performance Plan but not yet earned as of December 31, 2012:
|
(b)
|
The reported amount assumes the performance units are adjusted to the maximum value (200% of target).
|
|
December 31
|
||||||||||||||||||
|
2008
|
|
2009
|
|
2010
|
|
2011
|
|
2012
|
||||||||||
Boise Inc.
|
$
|
5
|
|
|
$
|
62
|
|
|
$
|
98
|
|
|
$
|
93
|
|
|
$
|
119
|
|
S&P 500 Index
|
$
|
67
|
|
|
$
|
85
|
|
|
$
|
98
|
|
|
$
|
100
|
|
|
$
|
116
|
|
Peer Group
|
$
|
53
|
|
|
$
|
84
|
|
|
$
|
101
|
|
|
$
|
91
|
|
|
$
|
115
|
|
ITEM 6.
|
SELECTED FINANCIAL DATA
|
|
Boise Inc.
|
|
|
Predecessor
|
||||||||||||||||||||
|
Year Ended December 31
|
|
|
January 1
Through
February 21,
2008
|
|
|||||||||||||||||||
|
2012 (a)
|
|
2011 (b)
|
|
2010 (c)
|
|
2009 (d)
|
|
2008 (e)
|
|||||||||||||||
Statement of income (loss) data
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Sales
|
$
|
2,555
|
|
|
$
|
2,404
|
|
|
$
|
2,094
|
|
|
$
|
1,978
|
|
|
$
|
2,071
|
|
|
|
$
|
360
|
|
Income from operations
|
148
|
|
|
191
|
|
|
194
|
|
|
306
|
|
|
40
|
|
|
|
23
|
|
||||||
Net income (loss)
|
52
|
|
|
75
|
|
|
63
|
|
|
154
|
|
|
(46
|
)
|
|
|
23
|
|
||||||
Net Income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
0.52
|
|
|
0.74
|
|
|
0.78
|
|
|
1.96
|
|
|
(0.62
|
)
|
|
|
—
|
|
||||||
Diluted
|
0.52
|
|
|
0.70
|
|
|
0.75
|
|
|
1.85
|
|
|
(0.62
|
)
|
|
|
—
|
|
||||||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) (f)
|
300
|
|
|
333
|
|
|
303
|
|
|
396
|
|
|
145
|
|
|
|
24
|
|
||||||
Cash dividends declared per common share
|
1.20
|
|
|
0.40
|
|
|
0.40
|
|
|
—
|
|
|
—
|
|
|
|
—
|
|
||||||
Balance sheet data (at end of year)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current assets
|
$
|
620
|
|
|
$
|
668
|
|
|
$
|
653
|
|
|
$
|
586
|
|
|
$
|
596
|
|
|
|
|
||
Property
|
1,247
|
|
|
1,256
|
|
|
1,217
|
|
|
1,223
|
|
|
1,277
|
|
|
|
|
|||||||
Total assets
|
2,208
|
|
|
2,286
|
|
|
1,939
|
|
|
1,896
|
|
|
1,988
|
|
|
|
|
|||||||
Current liabilities
|
297
|
|
|
311
|
|
|
304
|
|
|
303
|
|
|
269
|
|
|
|
|
|||||||
Long-term debt, less current portion
|
770
|
|
|
790
|
|
|
738
|
|
|
785
|
|
|
1,012
|
|
|
|
|
|||||||
Notes payable
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
67
|
|
|
|
|
|||||||
Total liabilities
|
1,460
|
|
|
1,491
|
|
|
1,292
|
|
|
1,275
|
|
|
1,539
|
|
|
|
|
|||||||
Stockholders' equity
|
748
|
|
|
795
|
|
|
647
|
|
|
621
|
|
|
449
|
|
|
|
|
(a)
|
Included
$31.7 million
of charges related primarily to ceasing paper production on our one remaining paper machine at our St. Helens, Oregon, paper mill.
|
(b)
|
Included
$2.2 million
of expense recorded in our Packaging segment related to the inventory purchase price adjustments.
|
(c)
|
Included a $22.2 million of loss on extinguishment of debt recorded in the Corporate and Other segment.
|
(d)
|
Included $5.8 million of expense associated with the restructuring of the St. Helens, Oregon, mill.
|
(e)
|
Included $37.6 million of expense associated with the restructuring of the St. Helens, Oregon, mill.
|
(f)
|
The following table reconciles net income (loss) to EBITDA for the periods indicated (dollars in millions):
|
|
Boise Inc.
|
|
|
Predecessor
|
||||||||||||||||||||
|
Year Ended December 31
|
|
|
January 1
Through
February 21,
2008
|
|
|||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2009
|
|
2008
|
|
|
|||||||||||||
Net income (loss)
|
$
|
52
|
|
|
$
|
75
|
|
|
$
|
63
|
|
|
$
|
154
|
|
|
$
|
(46
|
)
|
|
|
$
|
23
|
|
Interest expense
|
62
|
|
|
64
|
|
|
65
|
|
|
83
|
|
|
91
|
|
|
|
—
|
|
||||||
Interest income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
|
—
|
|
||||||
Income tax provision (benefit)
|
34
|
|
|
50
|
|
|
45
|
|
|
28
|
|
|
(9
|
)
|
|
|
1
|
|
||||||
Depreciation, amortization, and depletion
|
152
|
|
|
144
|
|
|
130
|
|
|
132
|
|
|
110
|
|
|
|
—
|
|
||||||
EBITDA
|
$
|
300
|
|
|
$
|
333
|
|
|
$
|
303
|
|
|
$
|
396
|
|
|
$
|
145
|
|
|
|
$
|
24
|
|
ITEM 7.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Sales
|
$
|
2,555.4
|
|
|
$
|
2,404.1
|
|
|
$
|
2,093.8
|
|
Net income
|
52.2
|
|
|
75.2
|
|
|
62.7
|
|
|||
Net income per diluted share
|
0.52
|
|
|
0.70
|
|
|
0.75
|
|
|||
Net income excluding special items
|
71.6
|
|
|
79.9
|
|
|
76.8
|
|
|||
Net income excluding special items per diluted share
|
0.71
|
|
|
0.75
|
|
|
0.91
|
|
|||
EBITDA
|
300.0
|
|
|
332.6
|
|
|
302.6
|
|
|||
EBITDA excluding special items
|
331.8
|
|
|
340.2
|
|
|
325.6
|
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net income
|
$
|
52.2
|
|
|
$
|
75.2
|
|
|
$
|
62.7
|
|
Interest expense
|
61.7
|
|
|
63.8
|
|
|
64.8
|
|
|||
Interest income
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|||
Income tax provision
|
34.0
|
|
|
50.1
|
|
|
45.4
|
|
|||
Depreciation, amortization, and depletion
|
152.3
|
|
|
143.8
|
|
|
129.9
|
|
|||
EBITDA
|
$
|
300.0
|
|
|
$
|
332.6
|
|
|
$
|
302.6
|
|
|
|
|
|
|
|
||||||
St. Helens charges
|
$
|
31.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Inventory purchase accounting expense
|
—
|
|
|
2.2
|
|
|
—
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
2.3
|
|
|
22.2
|
|
|||
Transaction-related costs
|
—
|
|
|
3.1
|
|
|
—
|
|
|||
Change in fair value of energy hedges
|
—
|
|
|
—
|
|
|
0.6
|
|
|||
St. Helens mill restructuring
|
—
|
|
|
—
|
|
|
0.2
|
|
|||
EBITDA excluding special items
|
$
|
331.8
|
|
|
$
|
340.2
|
|
|
$
|
325.6
|
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net income
|
$
|
52.2
|
|
|
$
|
75.2
|
|
|
$
|
62.7
|
|
St. Helens charges
|
31.7
|
|
|
—
|
|
|
—
|
|
|||
Inventory purchase accounting expense
|
—
|
|
|
2.2
|
|
|
—
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
2.3
|
|
|
22.2
|
|
|||
Transaction-related costs
|
—
|
|
|
3.1
|
|
|
—
|
|
|||
Change in fair value of energy hedges
|
—
|
|
|
—
|
|
|
0.6
|
|
|||
St. Helens mill restructuring
|
—
|
|
|
—
|
|
|
0.2
|
|
|||
Tax provision for special items (a)
|
(12.3
|
)
|
|
(2.9
|
)
|
|
(8.9
|
)
|
|||
Net income excluding special items
|
$
|
71.6
|
|
|
$
|
79.9
|
|
|
$
|
76.8
|
|
Weighted average common shares outstanding: diluted
|
101.1
|
|
|
106.7
|
|
|
84.1
|
|
|||
Net income excluding special items per diluted share
|
$
|
0.71
|
|
|
$
|
0.75
|
|
|
$
|
0.91
|
|
(a)
|
Special items are tax effected in the aggregate at an assumed combined federal and state statutory rate in effect for the period.
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Packaging
|
|
|
|
|
|
||||||
Sales Prices (a)
|
|
|
|
|
|
||||||
Linerboard, Total
|
$
|
467
|
|
|
$
|
459
|
|
|
$
|
434
|
|
Linerboard, External sales
|
415
|
|
|
422
|
|
|
365
|
|
|||
Newsprint
|
540
|
|
|
541
|
|
|
493
|
|
|||
Corrugated containers and sheets ($/msf) (b)
|
76
|
|
|
68
|
|
|
57
|
|
|||
Sales volumes (thousands of short tons, except corrugated)
|
|
|
|
|
|
||||||
Linerboard, Total
|
611.1
|
|
|
606.5
|
|
|
601.6
|
|
|||
Linerboard, External sales
|
158.9
|
|
|
230.2
|
|
|
225.2
|
|
|||
Newsprint
|
233.4
|
|
|
230.8
|
|
|
230.7
|
|
|||
Corrugated containers and sheets (mmsf) (b)
|
10,079
|
|
|
8,720
|
|
|
6,735
|
|
|||
Input and outage costs
|
|
|
|
|
|
||||||
Key input costs
|
|
|
|
|
|
||||||
Fiber, including purchased rollstock
|
$
|
176.9
|
|
|
$
|
156.9
|
|
|
$
|
97.4
|
|
Energy
|
61.2
|
|
|
65.2
|
|
|
65.8
|
|
|||
Chemicals
|
42.0
|
|
|
38.0
|
|
|
31.4
|
|
|||
Outage costs
|
10.9
|
|
|
9.9
|
|
|
9.0
|
|
|||
EBITDA (c)
|
162.5
|
|
|
155.5
|
|
|
103.6
|
|
|||
EBITDA excluding special items (c)
|
162.5
|
|
|
159.3
|
|
|
103.7
|
|
|||
Assets
|
958.0
|
|
|
957.3
|
|
|
505.6
|
|
|||
Paper
|
|
|
|
|
|
||||||
Sales Prices (a)
|
|
|
|
|
|
||||||
Uncoated freesheet (d)
|
$
|
968
|
|
|
$
|
990
|
|
|
$
|
977
|
|
Corrugating medium
|
509
|
|
|
481
|
|
|
467
|
|
|||
Market pulp
|
458
|
|
|
565
|
|
|
549
|
|
|||
Sales volumes
|
|
|
|
|
|
||||||
Uncoated freesheet (d)
|
1,253.8
|
|
|
1,229.8
|
|
|
1,233.0
|
|
|||
Corrugating medium
|
135.3
|
|
|
135.3
|
|
|
126.5
|
|
|||
Market pulp
|
52.9
|
|
|
90.2
|
|
|
81.2
|
|
|||
Input and outage costs
|
|
|
|
|
|
||||||
Key input costs
|
|
|
|
|
|
||||||
Fiber
|
$
|
343.1
|
|
|
$
|
377.1
|
|
|
$
|
364.4
|
|
Energy
|
134.8
|
|
|
143.9
|
|
|
145.9
|
|
|||
Chemicals
|
211.6
|
|
|
197.8
|
|
|
173.4
|
|
|||
Outage costs
|
14.8
|
|
|
21.5
|
|
|
14.0
|
|
|||
EBITDA (c)
|
161.6
|
|
|
201.5
|
|
|
238.9
|
|
|||
EBITDA excluding special items (c)
|
193.3
|
|
|
201.5
|
|
|
239.6
|
|
|||
Assets
|
1,144.7
|
|
|
1,190.9
|
|
|
1,187.9
|
|
(a)
|
Average net selling prices for our principal products represent sales less freight costs, discounts, and allowances. As reported in Note
17
, Segment Information, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of this Form 10-K, segment revenues include fees for shipping and handling charged to customers for sales transactions.
|
(b)
|
Included corrugated container and sheet prices and volumes for Tharco and Hexacomb since their acquisitions on March 1 and
|
(c)
|
For reconciliations of non-GAAP measures see "Non-GAAP Measures" of this Management's Discussion and Analysis of Financial Condition and Results of Operations.
|
(d)
|
Includes cut-size office papers, printing and converting papers, and label and release papers.
|
•
|
Competing technologies, including electronic substitution, that affect the demand for our products.
|
•
|
General global economic conditions, including, but not limited to, durable and nondurable goods production and white-collar employment.
|
•
|
The commodity nature of our products and their price movements, which are driven largely by supply and demand.
|
•
|
Availability and affordability of raw materials, including wood fiber, energy, and chemicals.
|
•
|
Legislation or regulatory environments, requirements, or changes affecting the businesses in which we are engaged.
|
•
|
Integration of our acquisitions.
|
•
|
Major equipment failure or significant operational setbacks.
|
•
|
Our customer concentration and the ability of our customers to pay.
|
•
|
Labor and personnel relations.
|
•
|
The ability of our lenders, customers, and suppliers to continue to conduct their businesses.
|
•
|
Pension funding requirements.
|
•
|
Credit or currency risks affecting our revenue and profitability.
|
•
|
Severe weather phenomena such as drought, hurricanes and significant rainfall, tornadoes, and fire.
|
•
|
The other factors described in "Part I, Item 1A. Risk Factors" of this Form 10-K.
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Sales
|
|
|
|
|
|
||||||
Trade
|
$
|
2,495.1
|
|
|
$
|
2,364.0
|
|
|
$
|
2,058.1
|
|
Related parties
|
60.3
|
|
|
40.1
|
|
|
35.6
|
|
|||
|
2,555.4
|
|
|
2,404.1
|
|
|
2,093.8
|
|
|||
|
|
|
|
|
|
||||||
Costs and expenses
|
|
|
|
|
|
||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
2,004.0
|
|
|
1,880.3
|
|
|
1,634.0
|
|
|||
Fiber costs from related parties
|
19.8
|
|
|
18.8
|
|
|
25.3
|
|
|||
Depreciation, amortization, and depletion
|
152.3
|
|
|
143.8
|
|
|
129.9
|
|
|||
Selling and distribution expenses
|
121.8
|
|
|
107.7
|
|
|
58.1
|
|
|||
General and administrative expenses
|
79.7
|
|
|
60.6
|
|
|
52.3
|
|
|||
St. Helens charges
|
27.6
|
|
|
—
|
|
|
—
|
|
|||
Other (income) expense, net
|
2.6
|
|
|
2.0
|
|
|
0.2
|
|
|||
|
2,407.8
|
|
|
2,213.0
|
|
|
1,899.8
|
|
|||
|
|
|
|
|
|
||||||
Income from operations
|
$
|
147.5
|
|
|
$
|
191.1
|
|
|
$
|
194.0
|
|
|
|
|
|
|
|
||||||
Sales
|
|
|
|
|
|
||||||
Trade
|
97.6
|
%
|
|
98.3
|
%
|
|
98.3
|
%
|
|||
Related parties
|
2.4
|
|
|
1.7
|
|
|
1.7
|
|
|||
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|||
|
|
|
|
|
|
||||||
Costs and expenses
|
|
|
|
|
|
||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
78.4
|
%
|
|
78.2
|
%
|
|
78.0
|
%
|
|||
Fiber costs from related parties
|
0.8
|
|
|
0.8
|
|
|
1.2
|
|
|||
Depreciation, amortization, and depletion
|
6.0
|
|
|
6.0
|
|
|
6.2
|
|
|||
Selling and distribution expenses
|
4.8
|
|
|
4.5
|
|
|
2.8
|
|
|||
General and administrative expenses
|
3.1
|
|
|
2.5
|
|
|
2.5
|
|
|||
St. Helens charges
|
1.1
|
|
|
—
|
|
|
—
|
|
|||
Other (income) expense, net
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|||
|
94.2
|
%
|
|
92.1
|
%
|
|
90.7
|
%
|
|||
|
|
|
|
|
|
||||||
Income from operations
|
5.8
|
%
|
|
7.9
|
%
|
|
9.3
|
%
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Cash provided by operations
|
$
|
235.0
|
|
|
$
|
250.2
|
|
|
$
|
289.8
|
|
Cash used for investment
|
(136.2
|
)
|
|
(443.3
|
)
|
|
(109.3
|
)
|
|||
Cash provided by (used for) financing
|
(146.1
|
)
|
|
123.3
|
|
|
(83.1
|
)
|
Sensitivity Analysis (a)
|
Estimated Annual Impact on Income Before Taxes
|
||
Packaging
|
|
||
Corrugated containers and sheets ($1.00/msf change in price)
|
$
|
10
|
|
Linerboard (External sales) ($10/short ton change in price)
|
2
|
|
|
Newsprint ($10/short ton change in price)
|
2
|
|
|
Paper
|
|
||
Uncoated freesheet ($10/short ton change in price)
|
12
|
|
|
Interest rate (1% change in interest rate on our variable-rate debt)
|
2
|
|
|
Energy (b)
|
|
||
Natural gas ($1.00/mmBtu change in price)
|
11
|
|
|
Electricity (1% change in cost)
|
1
|
|
|
Diesel ($0.50/gallon change in price)
|
6
|
|
|
Fiber (1% change in cost)
|
5
|
|
|
Chemicals (1% change in cost)
|
3
|
|
(a)
|
Based on
2012
operations and adjusted for ceasing paper production at St. Helens.
|
(b)
|
The allocation between energy sources may vary during the year in order to take advantage of market conditions. The diesel sensitivity does not take into account any floors that may exist in rail or truck fuel surcharge formulas.
|
|
Year Ended December 31, 2012
|
||||||||||||||
|
Acquisition/
Expansion |
|
Quality/
Efficiency (a) |
|
Replacement,
Environmental, and Other |
|
Total
|
||||||||
Packaging
|
$
|
2.0
|
|
|
$
|
11.6
|
|
|
$
|
47.7
|
|
|
$
|
61.3
|
|
Paper
|
—
|
|
|
13.0
|
|
|
58.1
|
|
|
71.1
|
|
||||
Corporate and Other
|
—
|
|
|
1.1
|
|
|
4.1
|
|
|
5.2
|
|
||||
|
$
|
2.0
|
|
|
$
|
25.7
|
|
|
$
|
109.9
|
|
|
$
|
137.6
|
|
(a)
|
Quality and efficiency projects include quality improvements, modernization, energy, and cost-saving projects.
|
|
Payments Due by Period
|
||||||||||||||||||
|
2013
|
|
2014-2015
|
|
2016-2017
|
|
Thereafter
|
|
Total
|
||||||||||
Long-term debt, including current portion (a)
|
$
|
10.0
|
|
|
$
|
50.0
|
|
|
$
|
420.0
|
|
|
$
|
300.0
|
|
|
$
|
780.0
|
|
Interest (b)
|
54.9
|
|
|
108.7
|
|
|
103.5
|
|
|
60.0
|
|
|
327.1
|
|
|||||
Operating leases (c)
|
22.7
|
|
|
39.8
|
|
|
25.3
|
|
|
11.1
|
|
|
98.9
|
|
|||||
Purchase obligations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Raw materials and finished goods inventory (d)
|
74.5
|
|
|
15.4
|
|
|
—
|
|
|
—
|
|
|
89.9
|
|
|||||
Utilities (e)
|
24.2
|
|
|
2.9
|
|
|
0.3
|
|
|
—
|
|
|
27.4
|
|
|||||
Other (f)
|
5.6
|
|
|
4.8
|
|
|
2.4
|
|
|
1.6
|
|
|
14.4
|
|
|||||
Other long-term liabilities reflected on our Consolidated Balance Sheet (g):
|
|
|
|
|
|
|
|
|
|
||||||||||
Compensation and benefits (h)
|
0.6
|
|
|
18.2
|
|
|
23.8
|
|
|
79.5
|
|
|
122.1
|
|
|||||
Other (i) (j)
|
4.6
|
|
|
8.0
|
|
|
5.1
|
|
|
28.9
|
|
|
46.6
|
|
|||||
|
$
|
197.1
|
|
|
$
|
247.8
|
|
|
$
|
580.4
|
|
|
$
|
481.1
|
|
|
$
|
1,506.4
|
|
(a)
|
The table assumes our long-term debt is held to maturity and includes the current portion of long-term debt. Debt maturities in 2013 include repayment of
$5.0 million
of borrowings under our Revolving Credit Facility, based on our intent to repay.
|
(b)
|
Amounts represent estimated interest payments as of
December 31, 2012
, and assume our long-term debt is held to maturity.
|
(c)
|
We enter into operating leases in the normal course of business. We lease some of our operating facilities, as well as other property and equipment, under operating leases. Some lease agreements provide us with the option to renew the lease or purchase the leased property. Our operating lease obligations would change if we exercised these renewal options and/or if we entered into additional operating lease agreements.
|
(d)
|
Included among our raw materials purchase obligations are contracts to purchase approximately
$65.6 million
of wood fiber. Purchase prices under most of these agreements are set quarterly or semiannually based on regional market prices, and the estimate is based on contract terms or first quarter
2013
pricing. Except for deposits required pursuant to wood supply contracts, these obligations are not recorded in our consolidated financial statements until contract payment terms take effect. Under most of these log and fiber supply agreements, we have the right to cancel or reduce our commitments in the event of a mill curtailment or shutdown. Our log and fiber obligations are subject to change based on, among other things, the effect of governmental laws and regulations, our manufacturing operations not operating in the normal course of business, log and fiber availability, and the status of environmental appeals.
|
(e)
|
We enter into utility contracts for the purchase of electricity and natural gas. We also purchase these services under utility tariffs. The contractual and tariff arrangements include multiple-year commitments and minimum annual purchase requirements. Our payment obligations were based upon prices in effect on
December 31, 2012
, or upon contract
|
(f)
|
Consists primarily of information technology purchase obligations.
|
(g)
|
Long-term deferred income taxes of
$198.4 million
and unrecognized tax benefits of
$28.3 million
are excluded from this table, because the timing of their future cash outflows are uncertain. Additional information relating to the inclusion of the credits in taxable income may become available in the next 12 months, which could cause us to change our unrecognized tax benefits from the amounts currently recorded. It is not reasonably possible to know to what extent the total amounts of unrecognized benefits will increase or decrease within the next 12 months.
|
(h)
|
Amounts consist primarily of pension obligations, including current portion of
$0.4 million
. Actuarially determined liabilities related to pension benefits are recorded based on estimates and assumptions. Key factors used in developing estimates of these liabilities include assumptions related to discount rates, retirement and mortality rates, expected contributions, and other factors. Changes in estimates and assumptions related to the measurement of funded status could have a material impact on the amount reported. In the table above, we allocated our pension obligations by year based on the future required minimum pension contributions, as determined by our actuaries. We have no minimum required contribution in
2013
, and we will contribute at least the required minimum contribution, which we currently estimate to be approximately
$3 million
in
2014
.
|
(i)
|
Includes current liabilities of
$4.6 million
related primarily to the current portion of workers' compensation liability.
|
(j)
|
We have excluded $1.4 million and $1.5 million of deferred lease costs and unfavorable lease liabilities, respectively, from the other long-term liabilities in the table above. These amounts have been excluded because deferred lease costs relate to operating leases which are already reflected in the operating lease category, above, and unfavorable lease liabilities do not represent a contractual obligation which will be settled in cash.
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
There-
after
|
|
December 31, 2012
|
||||||||||||||||||
Total
|
|
Fair
Value
|
|||||||||||||||||||||||||||||
Debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Long-term debt (a)
|
$
|
10.0
|
|
|
$
|
20.0
|
|
|
$
|
30.0
|
|
|
$
|
120.0
|
|
|
$
|
300.0
|
|
|
$
|
300.0
|
|
|
$
|
780.0
|
|
|
$
|
840.0
|
|
Fixed-rate debt payments (b)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
9% senior notes (c)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
300.0
|
|
|
$
|
—
|
|
|
$
|
300.0
|
|
|
$
|
327.4
|
|
8% senior notes (c)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
300.0
|
|
|
300.0
|
|
|
333.1
|
|
||||||||
Average interest rate (as percentage)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.0
|
|
|
8.0
|
|
|
8.5
|
|
|
—
|
|
||||||||
Variable-rate debt
payments (b)
|
$
|
10.0
|
|
|
$
|
20.0
|
|
|
$
|
30.0
|
|
|
$
|
120.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
180.0
|
|
|
$
|
179.5
|
|
Average interest rate (as percentage)
|
2.2
|
|
|
2.2
|
|
|
2.2
|
|
|
2.2
|
|
|
—
|
|
|
—
|
|
|
2.2
|
|
|
—
|
|
||||||||
Energy derivatives (d)
|
$
|
2.7
|
|
|
$
|
1.3
|
|
|
$
|
0.5
|
|
|
$
|
0.1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4.6
|
|
|
$
|
4.6
|
|
(a)
|
Includes current portion of our long-term debt. Debt maturities in 2013 include repayment of
$5.0 million
of borrowings under our Revolving Credit Facility, based on our intent to repay in 2013.
|
(b)
|
These obligations are further explained in Note
8
, Debt, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
|
(c)
|
The table assumes that accumulated interest is paid semiannually.
|
(d)
|
These obligations are further explained in Note
9
, Financial Instruments, of the Notes to Consolidated Financial Statements in "Part II, Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
|
|
Year Ending
December 31,
2013
|
|
Year Ended December 31
|
||||||||
|
2012
|
|
2011
|
||||||||
Pension expense
|
$
|
5.4
|
|
|
$
|
11.3
|
|
|
$
|
10.9
|
|
|
|
|
|
|
|
||||||
Assumptions
|
|
|
|
|
|
||||||
Discount rate
|
4.25
|
%
|
|
4.50
|
%
|
|
5.50
|
%
|
|||
Expected rate of return on plan assets
|
6.75
|
%
|
|
7.00
|
%
|
|
7.25
|
%
|
|
Base Expense
|
|
Increase (Decrease) in Pension Expense (a)
|
||||||||
|
0.25% Increase
|
|
0.25% Decrease
|
||||||||
2012 Expense
|
|
|
|
|
|
||||||
Discount rate
|
$
|
11.3
|
|
|
$
|
(1.5
|
)
|
|
$
|
1.5
|
|
Expected rate of return on plan assets
|
11.3
|
|
|
(1.0
|
)
|
|
1.0
|
|
|||
|
|
|
|
|
|
||||||
2013 Expense
|
|
|
|
|
|
||||||
Discount rate
|
$
|
5.4
|
|
|
$
|
(1.4
|
)
|
|
$
|
1.4
|
|
Expected rate of return on plan assets
|
5.4
|
|
|
(1.1
|
)
|
|
1.1
|
|
(a)
|
The sensitivities shown above are specific to
2012
and
2013
. The sensitivities may not be additive, so the impact of changing multiple factors simultaneously cannot be calculated by combining the individual sensitivities shown.
|
ITEM 7A.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 8.
|
FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Sales
|
|
|
|
|
|
||||||
Trade
|
$
|
2,495,092
|
|
|
$
|
2,364,024
|
|
|
$
|
2,058,132
|
|
Related parties
|
60,271
|
|
|
40,057
|
|
|
35,645
|
|
|||
|
2,555,363
|
|
|
2,404,081
|
|
|
2,093,777
|
|
|||
|
|
|
|
|
|
||||||
Costs and expenses
|
|
|
|
|
|
||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
2,004,044
|
|
|
1,880,271
|
|
|
1,634,039
|
|
|||
Fiber costs from related parties
|
19,772
|
|
|
18,763
|
|
|
25,259
|
|
|||
Depreciation, amortization, and depletion
|
152,306
|
|
|
143,758
|
|
|
129,926
|
|
|||
Selling and distribution expenses
|
121,827
|
|
|
107,654
|
|
|
58,107
|
|
|||
General and administrative expenses
|
79,748
|
|
|
60,587
|
|
|
52,273
|
|
|||
St. Helens charges
|
27,559
|
|
|
—
|
|
|
—
|
|
|||
Other (income) expense, net
|
2,572
|
|
|
1,994
|
|
|
213
|
|
|||
|
2,407,828
|
|
|
2,213,027
|
|
|
1,899,817
|
|
|||
|
|
|
|
|
|
||||||
Income from operations
|
147,535
|
|
|
191,054
|
|
|
193,960
|
|
|||
|
|
|
|
|
|
||||||
Foreign exchange gain
|
179
|
|
|
135
|
|
|
890
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
(2,300
|
)
|
|
(22,225
|
)
|
|||
Interest expense
|
(61,740
|
)
|
|
(63,817
|
)
|
|
(64,825
|
)
|
|||
Interest income
|
160
|
|
|
269
|
|
|
306
|
|
|||
|
(61,401
|
)
|
|
(65,713
|
)
|
|
(85,854
|
)
|
|||
|
|
|
|
|
|
||||||
Income before income taxes
|
86,134
|
|
|
125,341
|
|
|
108,106
|
|
|||
Income tax provision
|
(33,984
|
)
|
|
(50,131
|
)
|
|
(45,372
|
)
|
|||
Net income
|
$
|
52,150
|
|
|
$
|
75,210
|
|
|
$
|
62,734
|
|
|
|
|
|
|
|
||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
99,872
|
|
|
101,941
|
|
|
80,461
|
|
|||
Diluted
|
101,143
|
|
|
106,746
|
|
|
84,131
|
|
|||
|
|
|
|
|
|
||||||
Net income per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
0.52
|
|
|
$
|
0.74
|
|
|
$
|
0.78
|
|
Diluted
|
$
|
0.52
|
|
|
$
|
0.70
|
|
|
$
|
0.75
|
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net income
|
$
|
52,150
|
|
|
$
|
75,210
|
|
|
$
|
62,734
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
||||||
Foreign currency translation adjustment, net of tax of $76, $0, and $0, respectively
|
50
|
|
|
(352
|
)
|
|
—
|
|
|||
Cash flow hedges:
|
|
|
|
|
|
||||||
Change in fair value, net of tax of $534
,
($2,611), and $0, respectively
|
850
|
|
|
(4,165
|
)
|
|
—
|
|
|||
Loss included in net income, net of tax of $1,015, $291, and $131, respectively
|
1,622
|
|
|
463
|
|
|
553
|
|
|||
Actuarial gain (loss) and prior service cost (including related amortization) for defined benefit pension plans, net of tax of $11,303, ($24,540), and ($4,892), respectively
|
18,033
|
|
|
(39,149
|
)
|
|
(7,744
|
)
|
|||
Other, net of tax of ($13), ($10), and ($53), respectively
|
103
|
|
|
63
|
|
|
(78
|
)
|
|||
|
20,658
|
|
|
(43,140
|
)
|
|
(7,269
|
)
|
|||
|
|
|
|
|
|
||||||
Comprehensive income
|
$
|
72,808
|
|
|
$
|
32,070
|
|
|
$
|
55,465
|
|
|
December 31
|
||||||
|
2012
|
|
2011
|
||||
ASSETS
|
|
|
|
||||
|
|
|
|
||||
Current
|
|
|
|
||||
Cash and cash equivalents
|
$
|
49,707
|
|
|
$
|
96,996
|
|
Receivables
|
|
|
|
||||
Trade, less allowances of $1,382 and $1,343
|
240,459
|
|
|
228,838
|
|
||
Other
|
8,267
|
|
|
7,622
|
|
||
Inventories
|
294,484
|
|
|
307,305
|
|
||
Deferred income taxes
|
17,955
|
|
|
20,379
|
|
||
Prepaid and other
|
8,828
|
|
|
6,944
|
|
||
|
619,700
|
|
|
668,084
|
|
||
|
|
|
|
||||
Property
|
|
|
|
||||
Property and equipment, net
|
1,223,001
|
|
|
1,235,269
|
|
||
Fiber farms
|
24,311
|
|
|
21,193
|
|
||
|
1,247,312
|
|
|
1,256,462
|
|
||
|
|
|
|
||||
Deferred financing costs
|
26,677
|
|
|
30,956
|
|
||
Goodwill
|
160,130
|
|
|
161,691
|
|
||
Intangible assets, net
|
147,564
|
|
|
159,120
|
|
||
Other assets
|
7,029
|
|
|
9,757
|
|
||
Total assets
|
$
|
2,208,412
|
|
|
$
|
2,286,070
|
|
|
December 31
|
||||||
|
2012
|
|
2011
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
|
|
|
|
||||
Current
|
|
|
|
||||
Current portion of long-term debt
|
$
|
10,000
|
|
|
$
|
10,000
|
|
Accounts payable
|
185,078
|
|
|
202,584
|
|
||
Accrued liabilities
|
|
|
|
||||
Compensation and benefits
|
70,950
|
|
|
64,907
|
|
||
Interest payable
|
10,516
|
|
|
10,528
|
|
||
Other
|
20,528
|
|
|
22,540
|
|
||
|
297,072
|
|
|
310,559
|
|
||
|
|
|
|
||||
Debt
|
|
|
|
||||
Long-term debt, less current portion
|
770,000
|
|
|
790,000
|
|
||
|
|
|
|
||||
Other
|
|
|
|
||||
Deferred income taxes
|
198,370
|
|
|
161,260
|
|
||
Compensation and benefits
|
121,682
|
|
|
172,394
|
|
||
Other long-term liabilities
|
73,102
|
|
|
57,010
|
|
||
|
393,154
|
|
|
390,664
|
|
||
|
|
|
|
||||
Commitments and contingent liabilities
|
|
|
|
||||
|
|
|
|
||||
Stockholders' equity
|
|
|
|
||||
Preferred stock, $0.0001 par value per share: 1,000 shares authorized; none issued
|
—
|
|
|
—
|
|
||
Common stock, $0.0001 par value per share: 250,000 shares authorized; 100,503 and 100,272 shares issued and outstanding
|
12
|
|
|
12
|
|
||
Treasury stock, 21,151 shares held
|
(121,423
|
)
|
|
(121,421
|
)
|
||
Additional paid-in capital
|
868,840
|
|
|
866,901
|
|
||
Accumulated other comprehensive income (loss)
|
(101,304
|
)
|
|
(121,962
|
)
|
||
Retained earnings
|
102,061
|
|
|
171,317
|
|
||
Total stockholders' equity
|
748,186
|
|
|
794,847
|
|
||
|
|
|
|
||||
Total liabilities and stockholders' equity
|
$
|
2,208,412
|
|
|
$
|
2,286,070
|
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Cash provided by (used for) operations
|
|
|
|
|
|
||||||
Net income
|
$
|
52,150
|
|
|
$
|
75,210
|
|
|
$
|
62,734
|
|
Items in net income not using (providing) cash
|
|
|
|
|
|
||||||
Depreciation, depletion, and amortization of deferred financing costs and other
|
157,040
|
|
|
149,715
|
|
|
137,495
|
|
|||
Share-based compensation expense
|
5,983
|
|
|
3,695
|
|
|
3,733
|
|
|||
Pension expense
|
11,279
|
|
|
10,916
|
|
|
9,241
|
|
|||
Deferred income taxes
|
33,684
|
|
|
44,301
|
|
|
38,884
|
|
|||
St. Helens charges
|
28,481
|
|
|
—
|
|
|
—
|
|
|||
Other
|
1,868
|
|
|
1,878
|
|
|
95
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
2,300
|
|
|
22,225
|
|
|||
Decrease (increase) in working capital, net of acquisitions
|
|
|
|
|
|
||||||
Receivables
|
(9,803
|
)
|
|
1,624
|
|
|
57,255
|
|
|||
Inventories
|
8,136
|
|
|
(22,237
|
)
|
|
(17,120
|
)
|
|||
Prepaid expenses
|
(814
|
)
|
|
(275
|
)
|
|
4,690
|
|
|||
Accounts payable and accrued liabilities
|
(16,505
|
)
|
|
3,803
|
|
|
(6,690
|
)
|
|||
Current and deferred income taxes
|
(1,938
|
)
|
|
4,632
|
|
|
5,585
|
|
|||
Pension payments
|
(35,205
|
)
|
|
(25,414
|
)
|
|
(25,174
|
)
|
|||
Other
|
674
|
|
|
43
|
|
|
(3,172
|
)
|
|||
Cash provided by operations
|
235,030
|
|
|
250,191
|
|
|
289,781
|
|
|||
Cash provided by (used for) investment
|
|
|
|
|
|
||||||
Acquisition of businesses and facilities, net of cash acquired
|
—
|
|
|
(326,223
|
)
|
|
—
|
|
|||
Expenditures for property and equipment
|
(137,642
|
)
|
|
(128,762
|
)
|
|
(111,619
|
)
|
|||
Purchases of short-term investments
|
—
|
|
|
(3,494
|
)
|
|
(25,336
|
)
|
|||
Maturities of short-term investments
|
—
|
|
|
14,114
|
|
|
24,744
|
|
|||
Other
|
1,393
|
|
|
1,048
|
|
|
2,941
|
|
|||
Cash used for investment
|
(136,249
|
)
|
|
(443,317
|
)
|
|
(109,270
|
)
|
|||
Cash provided by (used for) financing
|
|
|
|
|
|
||||||
Issuances of long-term debt
|
5,000
|
|
|
275,000
|
|
|
300,000
|
|
|||
Payments of long-term debt
|
(25,000
|
)
|
|
(256,831
|
)
|
|
(334,096
|
)
|
|||
Payments of financing costs
|
(188
|
)
|
|
(8,613
|
)
|
|
(12,003
|
)
|
|||
Repurchases of common stock
|
(2
|
)
|
|
(121,421
|
)
|
|
—
|
|
|||
Proceeds from exercise of warrants
|
—
|
|
|
284,785
|
|
|
638
|
|
|||
Payments of special dividends
|
(119,653
|
)
|
|
(47,916
|
)
|
|
(32,276
|
)
|
|||
Tax withholdings on net settlements of share-based awards
|
(5,833
|
)
|
|
(2,775
|
)
|
|
(1,629
|
)
|
|||
Other
|
(394
|
)
|
|
1,060
|
|
|
(3,705
|
)
|
|||
Cash provided by (used for) financing
|
(146,070
|
)
|
|
123,289
|
|
|
(83,071
|
)
|
|||
Increase (decrease) in cash and cash equivalents
|
(47,289
|
)
|
|
(69,837
|
)
|
|
97,440
|
|
|||
Balance at beginning of the period
|
96,996
|
|
|
166,833
|
|
|
69,393
|
|
|||
Balance at end of the period
|
$
|
49,707
|
|
|
$
|
96,996
|
|
|
$
|
166,833
|
|
Boise Inc.
Consolidated Statements of Stockholders' Equity
(dollars and shares in thousands)
|
|||||||||||||||||||||||||||||||||
|
Stockholders' Equity
|
||||||||||||||||||||||||||||||||
|
Preferred Stock
|
|
Common Stock
|
|
Treasury Stock
|
|
Additional Paid-In Capital
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Retained Earnings
|
|
Total
|
||||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
|||||||||||||||||||||
Balance at December 31, 2009
|
$
|
—
|
|
|
84,419
|
|
|
$
|
8
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
578,669
|
|
|
$
|
(71,553
|
)
|
|
$
|
113,811
|
|
|
$
|
620,935
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
62,734
|
|
|
62,734
|
|
||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
(7,269
|
)
|
|
|
|
(7,269
|
)
|
||||||||||||||
Dividends declared
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(32,338
|
)
|
|
(32,338
|
)
|
||||||||||||||
Warrants exercised
|
|
|
85
|
|
|
—
|
|
|
|
|
|
|
638
|
|
|
|
|
|
|
638
|
|
||||||||||||
Share-based compensation awards
|
|
|
562
|
|
|
—
|
|
|
|
|
|
|
3,733
|
|
|
|
|
|
|
3,733
|
|
||||||||||||
Restricted stock withheld for taxes
|
|
|
(221
|
)
|
|
—
|
|
|
|
|
|
|
(1,629
|
)
|
|
|
|
|
|
(1,629
|
)
|
||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
31
|
|
|
|
|
|
|
31
|
|
||||||||||||||
Balance at December 31, 2010
|
$
|
—
|
|
|
84,845
|
|
|
$
|
8
|
|
|
—
|
|
|
$
|
—
|
|
|
$
|
581,442
|
|
|
$
|
(78,822
|
)
|
|
$
|
144,207
|
|
|
$
|
646,835
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
75,210
|
|
|
75,210
|
|
||||||||||||||
Other comprehensive loss, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
(43,140
|
)
|
|
|
|
(43,140
|
)
|
||||||||||||||
Dividends declared
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(48,100
|
)
|
|
(48,100
|
)
|
||||||||||||||
Warrants exercised
|
|
|
38,407
|
|
|
4
|
|
|
|
|
|
|
284,781
|
|
|
|
|
|
|
284,785
|
|
||||||||||||
Repurchases of common stock
|
|
|
(21,151
|
)
|
|
—
|
|
|
21,151
|
|
|
(121,421
|
)
|
|
|
|
|
|
|
|
(121,421
|
)
|
|||||||||||
Share-based compensation awards
|
|
|
(1,579
|
)
|
|
—
|
|
|
|
|
|
|
3,695
|
|
|
|
|
|
|
3,695
|
|
||||||||||||
Restricted stock withheld for taxes
|
|
|
(250
|
)
|
|
—
|
|
|
|
|
|
|
(2,775
|
)
|
|
|
|
|
|
(2,775
|
)
|
||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
(242
|
)
|
|
|
|
|
|
(242
|
)
|
||||||||||||||
Balance at December 31, 2011
|
$
|
—
|
|
|
100,272
|
|
|
$
|
12
|
|
|
21,151
|
|
|
$
|
(121,421
|
)
|
|
$
|
866,901
|
|
|
$
|
(121,962
|
)
|
|
$
|
171,317
|
|
|
$
|
794,847
|
|
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
52,150
|
|
|
52,150
|
|
||||||||||||||
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
20,658
|
|
|
|
|
20,658
|
|
||||||||||||||
Dividends declared
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(121,406
|
)
|
|
(121,406
|
)
|
||||||||||||||
Repurchases of common stock
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
|
|
|
|
|
|
(2
|
)
|
|||||||||||
Share-based compensation awards
|
|
|
695
|
|
|
—
|
|
|
|
|
|
|
5,983
|
|
|
|
|
|
|
5,983
|
|
||||||||||||
Restricted stock withheld for taxes
|
|
|
(464
|
)
|
|
—
|
|
|
|
|
|
|
(5,833
|
)
|
|
|
|
|
|
(5,833
|
)
|
||||||||||||
Dividends accrued on share-based awards
|
|
|
|
|
|
|
|
|
|
|
1,125
|
|
|
|
|
|
|
1,125
|
|
||||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
664
|
|
|
|
|
|
|
664
|
|
||||||||||||||
Balance at December 31, 2012
|
$
|
—
|
|
|
100,503
|
|
|
$
|
12
|
|
|
21,151
|
|
|
$
|
(121,423
|
)
|
|
$
|
868,840
|
|
|
$
|
(101,304
|
)
|
|
$
|
102,061
|
|
|
$
|
748,186
|
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Sales
|
|
|
|
|
|
||||||
Trade
|
$
|
2,495,092
|
|
|
$
|
2,364,024
|
|
|
$
|
2,058,132
|
|
Related parties
|
60,271
|
|
|
40,057
|
|
|
35,645
|
|
|||
|
2,555,363
|
|
|
2,404,081
|
|
|
2,093,777
|
|
|||
|
|
|
|
|
|
||||||
Costs and expenses
|
|
|
|
|
|
||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
2,004,044
|
|
|
1,880,271
|
|
|
1,634,039
|
|
|||
Fiber costs from related parties
|
19,772
|
|
|
18,763
|
|
|
25,259
|
|
|||
Depreciation, amortization, and depletion
|
152,306
|
|
|
143,758
|
|
|
129,926
|
|
|||
Selling and distribution expenses
|
121,827
|
|
|
107,654
|
|
|
58,107
|
|
|||
General and administrative expenses
|
79,748
|
|
|
60,587
|
|
|
52,273
|
|
|||
St. Helens charges
|
27,559
|
|
|
—
|
|
|
—
|
|
|||
Other (income) expense, net
|
2,572
|
|
|
1,994
|
|
|
213
|
|
|||
|
2,407,828
|
|
|
2,213,027
|
|
|
1,899,817
|
|
|||
|
|
|
|
|
|
||||||
Income from operations
|
147,535
|
|
|
191,054
|
|
|
193,960
|
|
|||
|
|
|
|
|
|
||||||
Foreign exchange gain
|
179
|
|
|
135
|
|
|
890
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
(2,300
|
)
|
|
(22,225
|
)
|
|||
Interest expense
|
(61,740
|
)
|
|
(63,817
|
)
|
|
(64,825
|
)
|
|||
Interest income
|
160
|
|
|
269
|
|
|
306
|
|
|||
|
(61,401
|
)
|
|
(65,713
|
)
|
|
(85,854
|
)
|
|||
|
|
|
|
|
|
||||||
Income before income taxes
|
86,134
|
|
|
125,341
|
|
|
108,106
|
|
|||
Income tax provision
|
(33,984
|
)
|
|
(50,131
|
)
|
|
(44,529
|
)
|
|||
Net income
|
$
|
52,150
|
|
|
$
|
75,210
|
|
|
$
|
63,577
|
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net income
|
$
|
52,150
|
|
|
$
|
75,210
|
|
|
$
|
63,577
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
||||||
Foreign currency translation adjustment, net of tax of $76, $0, and $0, respectively
|
50
|
|
|
(352
|
)
|
|
—
|
|
|||
Cash flow hedges:
|
|
|
|
|
|
||||||
Change in fair value, net of tax of $534,
($2,611), and $0, respectively
|
850
|
|
|
(4,165
|
)
|
|
—
|
|
|||
Loss included in net income, net of tax of
$1,015,
$291, and $131, respectively
|
1,622
|
|
|
463
|
|
|
553
|
|
|||
Actuarial gain (loss) and prior service cost (including related amortization) for defined benefit pension plans, net of tax of $11,303, ($24,540), and ($4,892), respectively
|
18,033
|
|
|
(39,149
|
)
|
|
(7,744
|
)
|
|||
Other, net of tax of ($13), ($10), and ($53), respectively
|
103
|
|
|
63
|
|
|
(78
|
)
|
|||
|
20,658
|
|
|
(43,140
|
)
|
|
(7,269
|
)
|
|||
|
|
|
|
|
|
||||||
Comprehensive income
|
$
|
72,808
|
|
|
$
|
32,070
|
|
|
$
|
56,308
|
|
|
December 31
|
||||||
|
2012
|
|
2011
|
||||
ASSETS
|
|
|
|
||||
|
|
|
|
||||
Current
|
|
|
|
||||
Cash and cash equivalents
|
$
|
49,707
|
|
|
$
|
96,996
|
|
Receivables
|
|
|
|
||||
Trade, less allowances of
$1,382
and $1,343
|
240,459
|
|
|
228,838
|
|
||
Other
|
8,267
|
|
|
7,622
|
|
||
Inventories
|
294,484
|
|
|
307,305
|
|
||
Deferred income taxes
|
17,955
|
|
|
20,379
|
|
||
Prepaid and other
|
8,828
|
|
|
6,944
|
|
||
|
619,700
|
|
|
668,084
|
|
||
|
|
|
|
||||
Property
|
|
|
|
||||
Property and equipment, net
|
1,223,001
|
|
|
1,235,269
|
|
||
Fiber farms
|
24,311
|
|
|
21,193
|
|
||
|
1,247,312
|
|
|
1,256,462
|
|
||
|
|
|
|
||||
Deferred financing costs
|
26,677
|
|
|
30,956
|
|
||
Goodwill
|
160,130
|
|
|
161,691
|
|
||
Intangible assets, net
|
147,564
|
|
|
159,120
|
|
||
Other assets
|
7,029
|
|
|
9,757
|
|
||
Total assets
|
$
|
2,208,412
|
|
|
$
|
2,286,070
|
|
|
December 31
|
||||||
|
2012
|
|
2011
|
||||
LIABILITIES AND CAPITAL
|
|
|
|
||||
|
|
|
|
||||
Current
|
|
|
|
||||
Current portion of long-term debt
|
$
|
10,000
|
|
|
$
|
10,000
|
|
Accounts payable
|
185,078
|
|
|
202,584
|
|
||
Accrued liabilities
|
|
|
|
||||
Compensation and benefits
|
70,950
|
|
|
64,907
|
|
||
Interest payable
|
10,516
|
|
|
10,528
|
|
||
Other
|
20,528
|
|
|
22,540
|
|
||
|
297,072
|
|
|
310,559
|
|
||
|
|
|
|
||||
Debt
|
|
|
|
||||
Long-term debt, less current portion
|
770,000
|
|
|
790,000
|
|
||
|
|
|
|
||||
Other
|
|
|
|
||||
Deferred income taxes
|
189,823
|
|
|
152,712
|
|
||
Compensation and benefits
|
121,682
|
|
|
172,394
|
|
||
Other long-term liabilities
|
73,152
|
|
|
57,061
|
|
||
|
384,657
|
|
|
382,167
|
|
||
|
|
|
|
||||
Commitments and contingent liabilities
|
|
|
|
||||
|
|
|
|
||||
Capital
|
|
|
|
||||
Business unit equity
|
857,987
|
|
|
925,306
|
|
||
Accumulated other comprehensive income (loss)
|
(101,304
|
)
|
|
(121,962
|
)
|
||
|
756,683
|
|
|
803,344
|
|
||
|
|
|
|
||||
Total liabilities and capital
|
$
|
2,208,412
|
|
|
$
|
2,286,070
|
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Cash provided by (used for) operations
|
|
|
|
|
|
||||||
Net income
|
$
|
52,150
|
|
|
$
|
75,210
|
|
|
$
|
63,577
|
|
Items in net income not using (providing) cash
|
|
|
|
|
|
||||||
Depreciation, depletion, and amortization of deferred financing costs and other
|
157,040
|
|
|
149,715
|
|
|
137,495
|
|
|||
Share-based compensation expense
|
5,983
|
|
|
3,695
|
|
|
3,733
|
|
|||
Pension expense
|
11,279
|
|
|
10,916
|
|
|
9,241
|
|
|||
Deferred income taxes
|
33,684
|
|
|
44,446
|
|
|
37,882
|
|
|||
St. Helens charges
|
28,481
|
|
|
—
|
|
|
—
|
|
|||
Other
|
1,868
|
|
|
1,878
|
|
|
95
|
|
|||
Loss on extinguishment of debt
|
—
|
|
|
2,300
|
|
|
22,225
|
|
|||
Decrease (increase) in working capital, net of acquisitions
|
|
|
|
|
|
||||||
Receivables
|
(9,803
|
)
|
|
1,624
|
|
|
57,255
|
|
|||
Inventories
|
8,136
|
|
|
(22,237
|
)
|
|
(17,120
|
)
|
|||
Prepaid expenses
|
(814
|
)
|
|
(275
|
)
|
|
4,690
|
|
|||
Accounts payable and accrued liabilities
|
(16,505
|
)
|
|
3,803
|
|
|
(6,690
|
)
|
|||
Current and deferred income taxes
|
(1,938
|
)
|
|
4,487
|
|
|
5,744
|
|
|||
Pension payments
|
(35,205
|
)
|
|
(25,414
|
)
|
|
(25,174
|
)
|
|||
Other
|
674
|
|
|
43
|
|
|
(3,172
|
)
|
|||
Cash provided by operations
|
235,030
|
|
|
250,191
|
|
|
289,781
|
|
|||
Cash provided by (used for) investment
|
|
|
|
|
|
||||||
Acquisition of businesses and facilities, net of cash acquired
|
—
|
|
|
(326,223
|
)
|
|
—
|
|
|||
Expenditures for property and equipment
|
(137,642
|
)
|
|
(128,762
|
)
|
|
(111,619
|
)
|
|||
Purchases of short-term investments
|
—
|
|
|
(3,494
|
)
|
|
(25,336
|
)
|
|||
Maturities of short-term investments
|
—
|
|
|
14,114
|
|
|
24,744
|
|
|||
Other
|
1,393
|
|
|
1,048
|
|
|
2,941
|
|
|||
Cash used for investment
|
(136,249
|
)
|
|
(443,317
|
)
|
|
(109,270
|
)
|
|||
Cash provided by (used for) financing
|
|
|
|
|
|
||||||
Issuances of long-term debt
|
5,000
|
|
|
275,000
|
|
|
300,000
|
|
|||
Payments of long-term debt
|
(25,000
|
)
|
|
(256,831
|
)
|
|
(334,096
|
)
|
|||
Payments of financing costs
|
(188
|
)
|
|
(8,613
|
)
|
|
(12,003
|
)
|
|||
Payments (to) from Boise Inc., net
|
(124,824
|
)
|
|
115,196
|
|
|
(31,639
|
)
|
|||
Other
|
(1,058
|
)
|
|
(1,463
|
)
|
|
(5,333
|
)
|
|||
Cash provided by (used for) financing
|
(146,070
|
)
|
|
123,289
|
|
|
(83,071
|
)
|
|||
Increase (decrease) in cash and cash equivalents
|
(47,289
|
)
|
|
(69,837
|
)
|
|
97,440
|
|
|||
Balance at beginning of the period
|
96,996
|
|
|
166,833
|
|
|
69,393
|
|
|||
Balance at end of the period
|
$
|
49,707
|
|
|
$
|
96,996
|
|
|
$
|
166,833
|
|
|
Capital
|
||||||||||
|
Business Unit Equity
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
Total
|
||||||
Balance at December 31, 2009
|
$
|
700,143
|
|
|
$
|
(71,553
|
)
|
|
$
|
628,590
|
|
Net income
|
63,577
|
|
|
|
|
63,577
|
|
||||
Other comprehensive loss, net of tax
|
|
|
(7,269
|
)
|
|
(7,269
|
)
|
||||
Net equity transactions with Boise Inc.
|
(29,566
|
)
|
|
|
|
(29,566
|
)
|
||||
Balance at December 31, 2010
|
$
|
734,154
|
|
|
$
|
(78,822
|
)
|
|
$
|
655,332
|
|
Net income
|
75,210
|
|
|
|
|
75,210
|
|
||||
Other comprehensive loss, net of tax
|
|
|
(43,140
|
)
|
|
(43,140
|
)
|
||||
Net equity transactions with Boise Inc.
|
115,942
|
|
|
|
|
115,942
|
|
||||
Balance at December 31, 2011
|
$
|
925,306
|
|
|
$
|
(121,962
|
)
|
|
$
|
803,344
|
|
Net income
|
52,150
|
|
|
|
|
52,150
|
|
||||
Other comprehensive
income
, net of tax
|
|
|
20,658
|
|
|
20,658
|
|
||||
Net equity transactions with Boise Inc.
|
(119,469
|
)
|
|
|
|
(119,469
|
)
|
||||
Balance at December 31, 2012
|
$
|
857,987
|
|
|
$
|
(101,304
|
)
|
|
$
|
756,683
|
|
•
|
Boise Inc. and its wholly owned subsidiaries, including BZ Intermediate Holdings LLC (BZ Intermediate).
|
•
|
BZ Intermediate and its wholly owned subsidiaries, including Boise Paper Holdings, L.L.C. (Boise Paper Holdings).
|
|
December 31
|
||||||
|
2012
|
|
2011
|
||||
Finished goods
|
$
|
150,496
|
|
|
$
|
155,588
|
|
Work in process
|
41,575
|
|
|
41,172
|
|
||
Fiber
|
35,840
|
|
|
38,469
|
|
||
Other raw materials and supplies
|
66,573
|
|
|
72,076
|
|
||
|
$
|
294,484
|
|
|
$
|
307,305
|
|
|
|
|
General Range of Estimated Useful Lives in Years
|
||||||||
|
December 31
|
|
|||||||||
|
2012
|
|
2011
|
|
|||||||
Land
|
$
|
28,899
|
|
|
$
|
34,735
|
|
|
|
|
|
Buildings and improvements
|
260,607
|
|
|
248,174
|
|
|
9
|
-
|
40
|
||
Machinery and equipment
|
1,479,212
|
|
|
1,375,069
|
|
|
3
|
-
|
20
|
||
Construction in progress
|
46,538
|
|
|
44,563
|
|
|
|
|
|
||
|
1,815,256
|
|
|
1,702,541
|
|
|
|
|
|
||
Less accumulated depreciation
|
(592,255
|
)
|
|
(467,272
|
)
|
|
|
|
|
||
|
$
|
1,223,001
|
|
|
$
|
1,235,269
|
|
|
|
|
|
|
Noncash
|
|
Cash (a)
|
|
Total Costs
|
||||||
Asset write-down
|
$
|
11,144
|
|
(b)
|
$
|
—
|
|
|
$
|
11,144
|
|
Inventory write-down
|
1,982
|
|
|
—
|
|
|
1,982
|
|
|||
Employee-related costs
|
—
|
|
|
4,334
|
|
|
4,334
|
|
|||
Pension curtailment loss
|
1,060
|
|
|
—
|
|
|
1,060
|
|
|||
Increase in asset retirement obligations (Note 15)
|
—
|
|
|
10,256
|
|
|
10,256
|
|
|||
Other
|
—
|
|
|
2,969
|
|
|
2,969
|
|
|||
|
$
|
14,186
|
|
|
$
|
17,559
|
|
|
$
|
31,745
|
|
(a)
|
We expect to pay approximately
$7.3 million
of the
$17.6 million
of cash costs in early 2013 and the remaining cash costs over a longer term.
|
(b)
|
During third quarter 2012, we assessed the St. Helens long-lived assets for impairment. Our assessment was based upon, among other things, our estimates of the amount of future net cash flows to be generated by the long-lived assets and our estimates of the current fair value of the assets (Level 3 inputs). Considerable management judgment is necessary to evaluate estimated future cash flows. The assumptions used in our impairment evaluations are consistent with our operating plans.
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Net income
|
$
|
52,150
|
|
|
$
|
75,210
|
|
|
$
|
62,734
|
|
Weighted average number of common shares for basic net income per common share (a)
|
99,872
|
|
|
101,941
|
|
|
80,461
|
|
|||
Incremental effect of dilutive common stock equivalents:
|
|
|
|
|
|
||||||
Restricted stock and restricted stock units
|
999
|
|
|
2,502
|
|
|
3,670
|
|
|||
Performance units
|
268
|
|
|
87
|
|
|
—
|
|
|||
Common stock warrants (b)
|
—
|
|
|
2,214
|
|
|
—
|
|
|||
Stock options (c)
|
4
|
|
|
2
|
|
|
—
|
|
|||
Weighted average number of common shares for diluted net income per common share
|
101,143
|
|
|
106,746
|
|
|
84,131
|
|
|||
|
|
|
|
|
|
||||||
Net income per common share:
|
|
|
|
|
|
||||||
Basic
|
$
|
0.52
|
|
|
$
|
0.74
|
|
|
$
|
0.78
|
|
Diluted
|
$
|
0.52
|
|
|
$
|
0.70
|
|
|
$
|
0.75
|
|
(a)
|
During the
year ended
December 31, 2011,
40.3 million
warrants were exercised, resulting in the issuance of
38.4 million
additional common shares. For the year ended December 31, 2011, the exercise added
25.7 million
to the number of weighted average shares included in basic net income per share.
|
(b)
|
For the year ended December 31, 2010, the warrants were not included in the computation of diluted net income per share because the exercise price exceeded the average market price of our common stock. The warrants were accounted for under the treasury stock method.
|
(c)
|
We excluded
0.8 million
and
0.3 million
of stock options from the computation of diluted net income per common share because they were antidilutive for the years ended December 31, 2012 and 2011, respectively. We had no stock options outstanding during 2010.
|
|
Boise Inc.
|
|
BZ Intermediate
|
||||||||||||||||||||
|
Year Ended December 31
|
||||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Income before income taxes
|
$
|
86,134
|
|
|
$
|
125,341
|
|
|
$
|
108,106
|
|
|
$
|
86,134
|
|
|
$
|
125,341
|
|
|
$
|
108,106
|
|
Statutory U.S. income tax rate
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
|
35.0
|
%
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Statutory tax provision
|
$
|
30,147
|
|
|
$
|
43,870
|
|
|
$
|
37,837
|
|
|
$
|
30,147
|
|
|
$
|
43,870
|
|
|
$
|
37,837
|
|
Foreign rate differential
|
(165
|
)
|
|
3
|
|
|
—
|
|
|
(165
|
)
|
|
3
|
|
|
—
|
|
||||||
State taxes
|
3,340
|
|
|
4,839
|
|
|
4,120
|
|
|
3,340
|
|
|
4,839
|
|
|
4,120
|
|
||||||
Valuation allowance
|
225
|
|
|
146
|
|
|
307
|
|
|
225
|
|
|
146
|
|
|
307
|
|
||||||
Nondeductible costs
|
985
|
|
|
1,476
|
|
|
652
|
|
|
985
|
|
|
1,476
|
|
|
652
|
|
||||||
Other
|
(548
|
)
|
|
(203
|
)
|
|
2,456
|
|
|
(548
|
)
|
|
(203
|
)
|
|
1,613
|
|
||||||
Income tax provision
|
$
|
33,984
|
|
|
$
|
50,131
|
|
|
$
|
45,372
|
|
|
$
|
33,984
|
|
|
$
|
50,131
|
|
|
$
|
44,529
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Effective income tax provision rate
|
39.5
|
%
|
|
40.0
|
%
|
|
42.0
|
%
|
|
39.5
|
%
|
|
40.0
|
%
|
|
41.2
|
%
|
|
Boise Inc.
|
|
BZ Intermediate
|
||||||||||||||||||||
|
Year Ended December 31
|
||||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Current income tax provision (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal
|
$
|
(599
|
)
|
|
$
|
2,249
|
|
|
$
|
4,253
|
|
|
$
|
(599
|
)
|
|
$
|
2,047
|
|
|
$
|
4,454
|
|
State
|
832
|
|
|
3,472
|
|
|
2,236
|
|
|
832
|
|
|
3,529
|
|
|
2,194
|
|
||||||
Foreign
|
67
|
|
|
109
|
|
|
(1
|
)
|
|
67
|
|
|
109
|
|
|
(1
|
)
|
||||||
Total current
|
$
|
300
|
|
|
$
|
5,830
|
|
|
$
|
6,488
|
|
|
$
|
300
|
|
|
$
|
5,685
|
|
|
$
|
6,647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred income tax provision (benefit)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Federal
|
$
|
29,985
|
|
|
$
|
40,778
|
|
|
$
|
34,061
|
|
|
$
|
29,985
|
|
|
$
|
40,980
|
|
|
$
|
33,151
|
|
State
|
3,705
|
|
|
3,524
|
|
|
4,831
|
|
|
3,705
|
|
|
3,467
|
|
|
4,739
|
|
||||||
Foreign
|
(6
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|
(6
|
)
|
|
(1
|
)
|
|
(8
|
)
|
||||||
Total deferred
|
$
|
33,684
|
|
|
$
|
44,301
|
|
|
$
|
38,884
|
|
|
$
|
33,684
|
|
|
$
|
44,446
|
|
|
$
|
37,882
|
|
Income tax provision (a)
|
$
|
33,984
|
|
|
$
|
50,131
|
|
|
$
|
45,372
|
|
|
$
|
33,984
|
|
|
$
|
50,131
|
|
|
$
|
44,529
|
|
(a)
|
In January 2013, the U.S. President signed into law the American Taxpayer Relief Act of 2012, which extended many tax provisions that would have otherwise expired in 2012. Our income tax provision at December 31, 2012, does not include the effect of this law; however, the effect, if any, would not be significant. We will record the effect, if any, of the extended tax provisions in first quarter 2013.
|
|
Boise Inc.
|
|
BZ Intermediate
|
||||||||||||||||||||||||||||
|
2013 Through 2022
|
|
2023 Through 2032
|
|
Indefinite
|
|
Total
|
|
2013 Through 2022
|
|
2023 Through 2032
|
|
Indefinite
|
|
Total
|
||||||||||||||||
U.S. federal and non-U.S. NOLs
|
$
|
4,432
|
|
|
$
|
35,820
|
|
|
$
|
—
|
|
|
$
|
40,252
|
|
|
$
|
4,432
|
|
|
$
|
35,920
|
|
|
$
|
—
|
|
|
$
|
40,352
|
|
State taxing jurisdiction NOLs
|
351
|
|
|
3,380
|
|
|
—
|
|
|
3,731
|
|
|
351
|
|
|
3,380
|
|
|
—
|
|
|
3,731
|
|
||||||||
U.S. federal, non-U.S., and state tax credit carryforwards
|
196
|
|
|
589
|
|
|
4,053
|
|
|
4,838
|
|
|
196
|
|
|
589
|
|
|
4,053
|
|
|
4,838
|
|
||||||||
U.S. federal capital loss carryforwards
|
1,232
|
|
|
—
|
|
|
—
|
|
|
1,232
|
|
|
1,232
|
|
|
—
|
|
|
—
|
|
|
1,232
|
|
||||||||
Total
|
$
|
6,211
|
|
|
$
|
39,789
|
|
|
$
|
4,053
|
|
|
$
|
50,053
|
|
|
$
|
6,211
|
|
|
$
|
39,889
|
|
|
$
|
4,053
|
|
|
$
|
50,153
|
|
|
Boise Inc.
|
|
BZ Intermediate
|
||||||||||||
|
December 31
|
||||||||||||||
|
2012
|
|
2011
|
|
2012
|
|
2011
|
||||||||
Deferred tax assets
|
|
|
|
|
|
|
|
||||||||
Employee benefits (a)
|
$
|
68,375
|
|
|
$
|
84,453
|
|
|
$
|
68,375
|
|
|
$
|
84,453
|
|
Deferred financing costs
|
1,584
|
|
|
1,593
|
|
|
1,584
|
|
|
1,593
|
|
||||
Intangible assets and other
|
310
|
|
|
122
|
|
|
310
|
|
|
122
|
|
||||
Net operating loss carryforwards (b)
|
61,106
|
|
|
61,262
|
|
|
60,999
|
|
|
61,155
|
|
||||
Alternative minimum tax
|
4,053
|
|
|
4,877
|
|
|
4,053
|
|
|
4,877
|
|
||||
Asset retirement obligations
|
8,025
|
|
|
3,933
|
|
|
8,025
|
|
|
3,933
|
|
||||
Inventories
|
7,752
|
|
|
11,875
|
|
|
7,752
|
|
|
11,875
|
|
||||
State income tax adjustments
|
4,894
|
|
|
4,701
|
|
|
4,894
|
|
|
4,701
|
|
||||
Other
|
9,130
|
|
|
10,000
|
|
|
9,130
|
|
|
10,000
|
|
||||
Gross deferred tax assets
|
165,229
|
|
|
182,816
|
|
|
165,122
|
|
|
182,709
|
|
||||
Valuation allowance (c)
|
(5,296
|
)
|
|
(5,340
|
)
|
|
(5,296
|
)
|
|
(5,340
|
)
|
||||
Net deferred tax assets
|
$
|
159,933
|
|
|
$
|
177,476
|
|
|
$
|
159,826
|
|
|
$
|
177,369
|
|
|
|
|
|
|
|
|
|
||||||||
Deferred tax liabilities
|
|
|
|
|
|
|
|
||||||||
Property and equipment
|
$
|
266,120
|
|
|
$
|
244,230
|
|
|
$
|
266,120
|
|
|
$
|
244,230
|
|
Intangible assets and other
|
60,195
|
|
|
61,416
|
|
|
60,195
|
|
|
61,416
|
|
||||
Deferred income
|
9,647
|
|
|
9,647
|
|
|
908
|
|
|
908
|
|
||||
Other
|
4,386
|
|
|
3,064
|
|
|
4,471
|
|
|
3,148
|
|
||||
Deferred tax liabilities
|
$
|
340,348
|
|
|
$
|
318,357
|
|
|
$
|
331,694
|
|
|
$
|
309,702
|
|
|
|
|
|
|
|
|
|
||||||||
As reported on our Consolidated Balance Sheets
|
|
|
|
|
|
|
|
||||||||
Current deferred tax assets, net
|
$
|
17,955
|
|
|
$
|
20,379
|
|
|
$
|
17,955
|
|
|
$
|
20,379
|
|
Noncurrent deferred tax liabilities
|
198,370
|
|
|
161,260
|
|
|
189,823
|
|
|
152,712
|
|
||||
Total deferred tax liabilities, net (d)
|
$
|
180,415
|
|
|
$
|
140,881
|
|
|
$
|
171,868
|
|
|
$
|
132,333
|
|
(a)
|
The decrease relates to the tax effect of changes in recorded pension liabilities. See Note
10
, Retirement and Benefit Plans, for more information.
|
(b)
|
At
December 31, 2012
and
2011
, net operating losses exclude
$9.8 million
and
$4.4 million
, respectively, of tax benefits that arose directly from tax deductions related to equity compensation in excess of compensation recognized for financial reporting. To the extent such net operating losses are utilized, stockholders' equity will be increased.
|
(c)
|
Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion of the deferred tax assets will not be realized. In 2012 and 2011, we recorded a
$5.3 million
valuation allowance. In 2012,
$4.1 million
of the valuation allowance relates to foreign net operating loss carryforwards, and the remaining
$1.2 million
relates to a valuation allowance recorded in full on deferred tax assets relating to capital losses. In 2011,
$4.3 million
of the valuation allowance relates to foreign net operating loss carryforwards and credits acquired as part of the Hexacomb acquisition. The remaining
$1.0 million
valuation allowance recorded during 2011 relates to a valuation allowance recorded in full on deferred tax assets relating to capital losses. We do not expect to generate capital gains before the losses expire. If or when recognized, the tax benefits relating to the reversal of any of or all of the valuation allowance will be recognized as a reduction of income tax expense.
|
(d)
|
As of
December 31, 2012
, we had not recognized U.S. deferred income taxes on our cumulative total of undistributed earnings for non-U.S. subsidiaries. Determining the unrecognized deferred tax liability related to investments in these non-U.S. subsidiaries that are indefinitely reinvested is not practicable. We currently intend to indefinitely reinvest those earnings in operations outside the United States.
|
|
Boise Inc.
|
|
BZ Intermediate
|
||||||||||||||||||||
|
Year Ended December 31
|
||||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Domestic
|
$
|
85,287
|
|
|
$
|
125,072
|
|
|
$
|
108,095
|
|
|
$
|
85,287
|
|
|
$
|
125,072
|
|
|
$
|
108,095
|
|
Foreign
|
847
|
|
|
269
|
|
|
11
|
|
|
847
|
|
|
269
|
|
|
11
|
|
||||||
Income before income taxes
|
$
|
86,134
|
|
|
$
|
125,341
|
|
|
$
|
108,106
|
|
|
$
|
86,134
|
|
|
$
|
125,341
|
|
|
$
|
108,106
|
|
|
Boise Inc.
|
|
BZ Intermediate
|
||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Beginning balance
|
$
|
90,989
|
|
|
$
|
87,585
|
|
|
$
|
87,838
|
|
|
$
|
90,968
|
|
|
$
|
87,564
|
|
|
$
|
87,820
|
|
Gross increases related to prior-period tax positions
|
189
|
|
|
409
|
|
|
169
|
|
|
189
|
|
|
409
|
|
|
166
|
|
||||||
Gross decreases related to prior-period tax positions
|
(2,284
|
)
|
|
(228
|
)
|
|
(529
|
)
|
|
(2,284
|
)
|
|
(228
|
)
|
|
(529
|
)
|
||||||
Gross increases related to current-period tax positions
|
—
|
|
|
3,223
|
|
|
107
|
|
|
—
|
|
|
3,223
|
|
|
107
|
|
||||||
Settlements
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Ending balance (a)
|
$
|
88,894
|
|
|
$
|
90,989
|
|
|
$
|
87,585
|
|
|
$
|
88,873
|
|
|
$
|
90,968
|
|
|
$
|
87,564
|
|
(a)
|
The unrecognized tax benefit, net of federal benefit for state taxes of $4.1 million, was
$84.8 million
at December 31, 2012. If that amount were recognized it would decrease our annual effective tax rate. Of this amount,
$56.6 million
(
$56.5 million
for BZ Intermediate) is recorded as a credit to long-term deferred taxes to eliminate the benefit associated with the uncertain tax position. The remaining
$28.3 million
(
$28.4 million
for BZ Intermediate) is recorded in "Other long-term liabilities" on our Consolidated Balance Sheets. Included in the
$84.8 million
is a credit related to our use of alternative fuel mixture to produce energy to operate our business of
$83.2 million
. Additional information relating to the inclusion of the alternative fuel mixture credits in taxable income may become available in the next 12 months, which could cause us to change our unrecognized tax benefits from the amounts currently recorded. It is not reasonably possible to know to what extent the total amounts of unrecognized benefits will increase or decrease within the next 12 months.
|
|
Goodwill
|
||
Balance at January 1, 2011
|
$
|
—
|
|
Goodwill acquired
|
162,169
|
|
|
Foreign currency translation adjustments
|
(478
|
)
|
|
Balance at December 31, 2011
|
161,691
|
|
|
Additions (reductions) (a)
|
(1,799
|
)
|
|
Foreign currency translation adjustments
|
238
|
|
|
Balance at December 31, 2012
|
$
|
160,130
|
|
|
As of December 31, 2012
|
||||||||||||
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net Carrying
Amount
|
|
Weighted Average Useful Life (in Years)
|
||||||
Customer relationships
|
$
|
120,077
|
|
|
$
|
(16,485
|
)
|
|
$
|
103,592
|
|
|
15
|
Trademarks and trade names
|
28,400
|
|
|
(2,634
|
)
|
|
25,766
|
|
|
15
|
|||
Technology and other
|
7,760
|
|
|
(6,771
|
)
|
|
989
|
|
|
5
|
|||
Noncompete agreements
|
835
|
|
|
(418
|
)
|
|
417
|
|
|
3
|
|||
Total finite-lived intangible assets
|
$
|
157,072
|
|
|
$
|
(26,308
|
)
|
|
130,764
|
|
|
13
|
|
Indefinite-lived trademarks and trade names
|
|
|
|
|
16,800
|
|
|
|
|||||
Total intangible assets (excluding goodwill)
|
|
|
|
|
$
|
147,564
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||
|
As of December 31, 2011
|
||||||||||||
|
Gross Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net Carrying
Amount
|
|
Weighted Average Useful Life (in Years)
|
||||||
Customer relationships
|
$
|
119,646
|
|
|
$
|
(8,275
|
)
|
|
$
|
111,371
|
|
|
15
|
Trademarks and trade names
|
28,400
|
|
|
(623
|
)
|
|
27,777
|
|
|
15
|
|||
Technology and other
|
7,760
|
|
|
(5,265
|
)
|
|
2,495
|
|
|
5
|
|||
Noncompete agreements
|
835
|
|
|
(158
|
)
|
|
677
|
|
|
3
|
|||
Total finite-lived intangible assets
|
$
|
156,641
|
|
|
$
|
(14,321
|
)
|
|
142,320
|
|
|
13
|
|
Indefinite-lived trademarks and trade names
|
|
|
|
|
16,800
|
|
|
|
|||||
Total intangible assets (excluding goodwill)
|
|
|
|
|
$
|
159,120
|
|
|
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Intangible asset amortization
|
$
|
11,952
|
|
|
$
|
6,533
|
|
|
$
|
2,754
|
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018 and After
|
||||||||||||
Amortization expense
|
$
|
10,375
|
|
|
$
|
10,122
|
|
|
$
|
10,122
|
|
|
$
|
10,113
|
|
|
$
|
10,021
|
|
|
$
|
80,011
|
|
|
December 31, 2012
|
|
December 31, 2011
|
||||||||||
|
Amount
|
|
Interest Rate
|
|
Amount
|
|
Interest Rate
|
||||||
Revolving credit facility, due 2016
|
$
|
5,000
|
|
|
2.21
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Tranche A term loan, due 2016
|
175,000
|
|
|
2.22
|
|
|
200,000
|
|
|
2.30
|
|
||
9% senior notes, due 2017
|
300,000
|
|
|
9.00
|
|
|
300,000
|
|
|
9.00
|
|
||
8% senior notes, due 2020
|
300,000
|
|
|
8.00
|
|
|
300,000
|
|
|
8.00
|
|
||
Long-term debt
|
780,000
|
|
|
7.05
|
|
|
800,000
|
|
|
6.95
|
|
||
Current portion of long-term debt
|
(10,000
|
)
|
|
2.22
|
|
|
(10,000
|
)
|
|
2.30
|
|
||
Long-term debt, less current portion
|
$
|
770,000
|
|
|
7.11
|
%
|
|
$
|
790,000
|
|
|
7.01
|
%
|
•
|
The Revolving Credit Facility
: A five-year nonamortizing
$500 million
senior secured revolving credit facility with variable annual interest. In addition to paying interest, we pay an annual commitment fee for undrawn amounts at a rate of either
0.35%
or
0.50%
depending on our total leverage ratio.
|
•
|
The Tranche A Term Loan Facility
: A five-year amortizing
$200 million
senior secured loan facility with variable annual interest.
|
•
|
The
9%
Senior Notes
: An eight-year nonamortizing
$300 million
senior unsecured debt obligation with fixed annual interest of
9%
.
|
•
|
The
8%
Senior Notes
: A ten-year nonamortizing
$300 million
senior unsecured debt obligation with fixed annual interest of
8%
.
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
Thereafter
|
||||||||||||
Required debt principal repayments (a)
|
$
|
10,000
|
|
|
$
|
20,000
|
|
|
$
|
30,000
|
|
|
$
|
120,000
|
|
|
$
|
300,000
|
|
|
$
|
300,000
|
|
(a)
|
Debt maturities in 2013 include repayment of
$5.0 million
of borrowings under our Revolving Credit Facility based on our intent to repay in 2013.
|
|
January 2013
Through March 2013 |
|
April 2013
Through October 2013 |
|
November 2013
Through March 2014 |
|
April 2014
Through October 2014 |
|
November 2014
Through March 2015 |
|
April 2015
Through October 2015 |
|
November 2015
Through March 2016 |
|||||||
Approximate percent hedged
|
87
|
%
|
|
75
|
%
|
|
53
|
%
|
|
48
|
%
|
|
43
|
%
|
|
37
|
%
|
|
13
|
%
|
|
(Gain) Loss Recognized in Accumulated Other Comprehensive Income
|
|
Loss Reclassified From Accumulated Other Comprehensive Income Into Earnings
|
||||||||||||||||||||
|
Year Ended December 31
|
||||||||||||||||||||||
|
2012 (a)
|
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
|||||||||||
Natural gas contracts
|
$
|
(1,384
|
)
|
|
$
|
6,776
|
|
|
$
|
—
|
|
|
$
|
2,637
|
|
|
$
|
754
|
|
|
$
|
—
|
|
Interest rate contracts
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
422
|
|
||||||
Total
|
$
|
(1,384
|
)
|
|
$
|
6,776
|
|
|
$
|
—
|
|
|
$
|
2,637
|
|
|
$
|
754
|
|
|
$
|
422
|
|
(a)
|
Based on
December 31, 2012
, pricing, the estimated loss, net of tax, to be recognized in earnings during the next 12 months is
$1.2 million
.
|
|
Level 2: Significant Other Observable Inputs
|
||||||
|
December 31
|
||||||
|
2012
|
|
2011
|
||||
Natural gas contracts
|
|
|
|
||||
Cash flow hedges
|
$
|
2,365
|
|
|
$
|
6,022
|
|
Economic hedges
|
2,197
|
|
|
2,370
|
|
||
Total
|
$
|
4,562
|
|
|
$
|
8,392
|
|
|
December 31
|
||||||
|
2012
|
|
2011
|
||||
Projected benefit obligation at beginning of year
|
$
|
558,416
|
|
|
$
|
475,044
|
|
Service cost
|
2,732
|
|
|
3,969
|
|
||
Interest cost
|
24,596
|
|
|
25,582
|
|
||
Actuarial loss (a)
|
14,162
|
|
|
69,768
|
|
||
Closure and curtailment loss
|
1,060
|
|
|
—
|
|
||
Benefits paid and settlements
|
(26,965
|
)
|
|
(15,947
|
)
|
||
Projected benefit obligation at end of year
|
$
|
574,001
|
|
|
$
|
558,416
|
|
|
|
|
|
||||
Change in fair value of plan assets
|
|
|
|
||||
Fair value of plan assets at beginning of year
|
$
|
390,082
|
|
|
$
|
355,901
|
|
Actual return on plan assets
|
60,613
|
|
|
24,714
|
|
||
Employer contributions
|
35,205
|
|
|
25,414
|
|
||
Benefits paid
|
(18,551
|
)
|
|
(15,947
|
)
|
||
Settlements
|
(8,414
|
)
|
|
—
|
|
||
Fair value of plan assets at end of year
|
$
|
458,935
|
|
|
$
|
390,082
|
|
|
|
|
|
||||
Underfunded status
|
$
|
115,066
|
|
|
$
|
168,334
|
|
|
|
|
|
||||
Amounts recognized on our consolidated balance sheets
|
|
|
|
||||
Current liabilities
|
$
|
309
|
|
|
$
|
294
|
|
Noncurrent liabilities
|
114,757
|
|
|
168,040
|
|
||
Net amount recognized
|
$
|
115,066
|
|
|
$
|
168,334
|
|
|
|
|
|
||||
Amounts recognized in accumulated other comprehensive income (loss)
|
|
|
|
||||
Actuarial net loss
|
$
|
109,796
|
|
|
$
|
139,061
|
|
Prior service cost
|
—
|
|
|
71
|
|
||
Net loss recognized
|
$
|
109,796
|
|
|
$
|
139,132
|
|
(a)
|
The actuarial loss in 2012 is due primarily to a decrease in the weighted average discount rate from
4.50%
to
4.25%
, compared with a decrease from
5.50%
to
4.50%
in 2011.
|
|
Year Ended December 31
|
||||||||||
2012
|
|
2011
|
|
2010
|
|||||||
Service cost
|
$
|
2,732
|
|
|
$
|
3,969
|
|
|
$
|
5,041
|
|
Interest cost
|
24,596
|
|
|
25,582
|
|
|
25,272
|
|
|||
Expected return on plan assets
|
(27,286
|
)
|
|
(24,581
|
)
|
|
(23,242
|
)
|
|||
Amortization of actuarial loss
|
10,107
|
|
|
5,595
|
|
|
1,774
|
|
|||
Amortization of prior service cost
|
5
|
|
|
51
|
|
|
51
|
|
|||
Plan settlement curtailment loss
|
1,125
|
|
|
300
|
|
|
345
|
|
|||
Net periodic benefit cost
|
$
|
11,279
|
|
|
$
|
10,916
|
|
|
$
|
9,241
|
|
|
|
|
|
|
|
||||||
Changes in plan assets and benefit obligations recognized in other comprehensive (income) loss
|
|
|
|
|
|
||||||
Actuarial net (gain) loss
|
$
|
(19,158
|
)
|
|
$
|
69,635
|
|
|
$
|
14,461
|
|
Prior service credit
|
(66
|
)
|
|
(300
|
)
|
|
—
|
|
|||
Amortization of actuarial loss
|
(10,107
|
)
|
|
(5,595
|
)
|
|
(1,774
|
)
|
|||
Amortization of prior service cost
|
(5
|
)
|
|
(51
|
)
|
|
(51
|
)
|
|||
Total recognized in other comprehensive (income) loss
|
(29,336
|
)
|
|
63,689
|
|
|
12,636
|
|
|||
Total recognized in net periodic benefit cost and other comprehensive (income) loss
|
$
|
(18,057
|
)
|
|
$
|
74,605
|
|
|
$
|
21,877
|
|
|
December 31
|
||||
|
2012
|
|
2011
|
||
Weighted average:
|
|
|
|
||
Discount rate
|
4.25
|
%
|
|
4.50
|
%
|
Rate of compensation increase
|
—
|
%
|
|
—
|
%
|
|
Year Ended December 31
|
|||||||
|
2012
|
|
2011
|
|
2010
|
|||
Weighted average assumptions as of the last day in the presented period:
|
|
|
|
|
|
|||
Discount rate
|
4.50
|
%
|
|
5.50
|
%
|
|
6.10
|
%
|
Expected long-term rate of return on plan assets
|
7.00
|
%
|
|
7.25
|
%
|
|
7.25
|
%
|
Rate of compensation increase
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
December 31, 2012
|
||||||||||||||
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2) (a)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total
|
||||||||
Cash equivalents
|
$
|
—
|
|
|
$
|
225
|
|
|
$
|
—
|
|
|
$
|
225
|
|
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap U.S. equity securities (b)
|
—
|
|
|
90,024
|
|
|
—
|
|
|
90,024
|
|
||||
Small- and mid-cap U.S. equity securities (c)
|
—
|
|
|
17,998
|
|
|
—
|
|
|
17,998
|
|
||||
International equity securities (d)
|
—
|
|
|
126,010
|
|
|
—
|
|
|
126,010
|
|
||||
Fixed-income securities (e)
|
—
|
|
|
217,456
|
|
|
—
|
|
|
217,456
|
|
||||
Private equity securities (f)
|
—
|
|
|
—
|
|
|
6,346
|
|
|
6,346
|
|
||||
Total securities at fair value
|
—
|
|
|
451,713
|
|
|
6,346
|
|
|
458,059
|
|
||||
Receivables and accrued expenses
|
|
|
|
|
|
|
876
|
|
|||||||
Total fair value of plan assets
|
|
|
|
|
|
|
$
|
458,935
|
|
|
December 31, 2011
|
||||||||||||||
|
Quoted Prices in Active Markets for Identical Assets
(Level 1)
|
|
Significant Other Observable Inputs
(Level 2) (a)
|
|
Significant Unobservable Inputs
(Level 3)
|
|
Total
|
||||||||
Equity securities:
|
|
|
|
|
|
|
|
||||||||
Large-cap U.S. equity securities (b)
|
$
|
—
|
|
|
$
|
112,609
|
|
|
$
|
—
|
|
|
$
|
112,609
|
|
Small- and mid-cap U.S. equity securities (c)
|
—
|
|
|
19,426
|
|
|
—
|
|
|
19,426
|
|
||||
International equity securities (d)
|
—
|
|
|
65,265
|
|
|
—
|
|
|
65,265
|
|
||||
Fixed-income securities (e)
|
—
|
|
|
188,287
|
|
|
—
|
|
|
188,287
|
|
||||
Private equity securities (f)
|
—
|
|
|
—
|
|
|
3,531
|
|
|
3,531
|
|
||||
Total securities at fair value
|
—
|
|
|
385,587
|
|
|
3,531
|
|
|
389,118
|
|
||||
Receivables and accrued expenses
|
|
|
|
|
|
|
964
|
|
|||||||
Total fair value of plan assets
|
|
|
|
|
|
|
$
|
390,082
|
|
(a)
|
Investments are mutual funds managed by Russell Trust Company. The funds are valued at the net asset value (NAV) provided by Russell Trust Company, the administrator of the funds. We use NAV as a practical expedient for fair value. The NAV is based on the value of the assets owned by the fund, less liabilities at year-end. While the underlying assets are actively traded on an exchange, the funds are not. We have the ability to redeem these funds with a one-day notice, except as disclosed below in note (e).
|
(b)
|
Our investments in this category are invested in the Russell Equity I Fund. The fund seeks higher long-term returns that exceed the Russell 1000 Index by investing in large-capitalization stock in the U.S. stock market.
|
(c)
|
Our investments in this category are invested in the Russell Equity II Fund. The fund seeks high, long-term returns that exceed the Russell 2500 Index by investing in mid- and small-capitalization stocks of the U.S. stock market.
|
(d)
|
At December 31, 2012 and 2011, our investments in this category included the Russell International Fund with Active Currency. The fund benchmarks against the Russell Developed ex-U.S. Large Cap Index Net and seeks favorable total returns and additional diversification through investment in non-U.S. equity securities and active currency management. The fund participates primarily in the stock markets of Europe and the Pacific Rim and seeks to opportunistically add value through active investment in foreign currencies. In addition, at December 31, 2012, our investments in this category included the Russell World Equity and the Russell Emerging Markets Funds. The Russell World Equity Fund benchmarks against the Russell Developed Large Cap Index and seeks higher returns through access to the large-cap segment of both U.S. and international developed equities. The Russell Emerging Markets Fund benchmarks against the Russell Emerging Markets Index and is designed to maintain a broadly diversified exposure to emerging market countries.
|
(e)
|
In 2012, the Russell Long Credit Fixed income Fund (Long Credit Fund) was converted to a fund of funds structure and offers six Liability Driven Investment (LDI) fixed-income funds with horizons ranging from six to 16 years. Our investments at December 31, 2012, included the six LDI funds, which are designed to reduce defined benefit plan funded status volatility by more closely matching the interest rate sensitivity of plan liabilities. At December 31, 2012 and 2011, our investments in this category included the Russell Long Duration Fixed Income Fund (Long Duration Fund), which seeks to achieve above-average consistency in performance relative to the Barclays Capital U.S. Long Government/Credit Bond Index by combining manager styles and strategies with different payoffs over various phases of an investment cycle. At December 31, 2011, our investments included the Long Credit Fund, which seeks to achieve above-average consistency in performance relative to the Barclays Capital Long Credit Index and is used with other bond funds, such as the Long Duration Fund, to gain additional credit exposure to asset portfolios. Funds in this category are designed to provide maximum total return through diversified strategies, including sector rotation, modest interest rate timing, security selection, and tactical use of high-yield and emerging markets bonds. Investments in this category may be redeemed monthly with four days' notice.
|
(f)
|
Our investments in this category are invested in the Pantheon Global Secondary Fund IV, LP. The fund specializes in investments in the private equity secondary market and occasionally directly in private companies to maximize capital growth. Fund investments are carried at fair value as determined quarterly using the market approach to estimate the fair value of private investments. The market approach utilizes prices and other relevant information generated by market transactions, type of security, size of the position, degree of liquidity, restrictions on the disposition, latest round of financing data, current financial position, and operating results, among other factors. In circumstances where fair values are not provided with respect to any of the company's fund investments, the investment advisor will seek to determine the fair value of such investments based on information provided by the general partners or managers of such funds or from other sources. Notwithstanding the above, the variety of valuation bases adopted and quality of management data of the ultimate underlying investee companies means that there are inherent difficulties in determining the value of the investments. Amounts realized on the sale of these investments may differ from the calculated values.
|
|
Year Ended December 31
|
||||||
|
2012
|
|
2011
|
||||
Balance, beginning of year
|
$
|
3,531
|
|
|
$
|
2,225
|
|
Purchases
|
2,400
|
|
|
720
|
|
||
Sales
|
(375
|
)
|
|
—
|
|
||
Unrealized gain
|
790
|
|
|
586
|
|
||
Balance, end of year
|
$
|
6,346
|
|
|
$
|
3,531
|
|
|
Pension Benefits
|
||
2013
|
$
|
21,787
|
|
2014
|
24,145
|
|
|
2015
|
26,204
|
|
|
2016
|
28,046
|
|
|
2017
|
29,998
|
|
|
Years 2018-2022
|
172,273
|
|
|
Service-Condition Vesting Awards
(Restricted Stock Awards and Performance Units)
|
|
Market-Condition Vesting Awards
|
||||||||||
|
Number of
Shares
|
|
Weighted
Average
Grant-Date
Fair Value
|
|
Number of
Shares
|
|
Weighted
Average
Grant-Date
Fair Value
|
||||||
Outstanding at January 1, 2010 (a)
|
6,331
|
|
|
$
|
0.74
|
|
|
1,884
|
|
|
$
|
1.75
|
|
Granted
|
250
|
|
|
5.81
|
|
|
—
|
|
|
—
|
|
||
Vested (b)
|
(3,009
|
)
|
|
0.77
|
|
|
(4
|
)
|
|
1.75
|
|
||
Forfeited
|
(43
|
)
|
|
4.26
|
|
|
(2
|
)
|
|
1.75
|
|
||
Outstanding at December 31, 2010 (a)
|
3,529
|
|
|
$
|
1.04
|
|
|
1,878
|
|
|
$
|
1.75
|
|
Granted
|
658
|
|
|
8.52
|
|
|
—
|
|
|
—
|
|
||
Vested (b)
|
(1,128
|
)
|
|
1.94
|
|
|
—
|
|
|
—
|
|
||
Forfeited
|
(535
|
)
|
|
1.19
|
|
|
(1,878
|
)
|
|
1.75
|
|
||
Outstanding at December 31, 2011 (a)
|
2,524
|
|
|
$
|
2.55
|
|
|
—
|
|
|
$
|
—
|
|
Granted
|
760
|
|
|
8.04
|
|
|
—
|
|
|
—
|
|
||
Vested (b)
|
(2,133
|
)
|
|
1.46
|
|
|
—
|
|
|
—
|
|
||
Forfeited
|
(26
|
)
|
|
5.51
|
|
|
—
|
|
|
—
|
|
||
Outstanding at December 31, 2012 (a)
|
1,125
|
|
|
$
|
7.20
|
|
|
—
|
|
|
$
|
—
|
|
(a)
|
Outstanding awards included all nonvested and nonforfeited awards.
|
(b)
|
Total fair value of awards upon vesting for the years ended
December 31, 2012
,
2011
, and
2010
, was
$17.5 million
,
$9.7 million
, and
$16.3 million
, respectively.
|
|
Number of Options
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Life (in years)
|
|
Aggregate Intrinsic Value
|
|||||
Outstanding at December 31, 2010
|
—
|
|
|
$
|
—
|
|
|
|
|
|
||
Granted
|
363
|
|
|
8.53
|
|
|
|
|
|
|||
Forfeited
|
(30
|
)
|
|
8.55
|
|
|
|
|
|
|||
Outstanding at December 31, 2011
|
333
|
|
|
$
|
8.53
|
|
|
9.2
|
|
$
|
—
|
|
Granted
|
508
|
|
|
8.22
|
|
|
|
|
|
|||
Forfeited
|
—
|
|
|
—
|
|
|
|
|
|
|||
Outstanding at December 31, 2012
|
841
|
|
|
$
|
8.34
|
|
|
8.8
|
|
$
|
—
|
|
|
Year Ended December 31
|
|||||||||||
|
2012
|
|
|
2011
|
||||||||
Black-Scholes-Merton assumptions:
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected volatility
|
50.00%
|
|
-
|
|
50.10%
|
|
|
47.50%
|
|
-
|
|
47.85%
|
Expected life (years)
|
5.91
|
|
-
|
|
6.00
|
|
|
5.88
|
|
-
|
|
6.25
|
Risk-free interest rate
|
1.08%
|
|
-
|
|
1.39%
|
|
|
1.66%
|
|
-
|
|
2.48%
|
Expected dividend yield
|
|
|
|
|
—
|
|
|
|
|
|
|
—
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Service-condition restricted stock awards and performance units
|
$
|
5,039
|
|
|
$
|
3,415
|
|
|
$
|
2,663
|
|
Market-condition restricted stock awards
|
—
|
|
|
(98
|
)
|
|
1,070
|
|
|||
Stock options
|
944
|
|
|
378
|
|
|
—
|
|
|||
Total share-based compensation expense
|
$
|
5,983
|
|
|
$
|
3,695
|
|
|
$
|
3,733
|
|
|
As of December 31, 2012
|
||||
|
Unrecognized Compensation Expense
|
|
Remaining Weighted Average Recognition Period (in years)
|
||
Service-condition restricted stock awards and performance units
|
$
|
4,528
|
|
|
1.5
|
Stock options
|
1,752
|
|
|
1.9
|
|
Total unrecognized share-based compensation expense
|
$
|
6,280
|
|
|
1.6
|
|
|
|
|
|
|
|
Benefit Plans
|
|
|
||||||||||||||
|
Investment Gains (Losses)
|
|
Foreign Currency Translation
|
|
Cash Flow Hedges
|
|
Actuarial
Loss
(a)
|
|
Prior Service
Cost
|
|
Accumulated Other Comprehensive Income (Loss)
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Balance at December 31, 2009, net of taxes
|
$
|
(5
|
)
|
|
$
|
—
|
|
|
$
|
(553
|
)
|
|
$
|
(70,578
|
)
|
|
$
|
(417
|
)
|
|
$
|
(71,553
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current-period changes, before taxes
|
6
|
|
|
—
|
|
|
—
|
|
|
(14,449
|
)
|
|
—
|
|
|
(14,443
|
)
|
||||||
Reclassifications to earnings, before taxes
|
—
|
|
|
—
|
|
|
422
|
|
|
1,625
|
|
|
51
|
|
|
2,098
|
|
||||||
Income taxes
|
—
|
|
|
—
|
|
|
131
|
|
|
4,964
|
|
|
(19
|
)
|
|
5,076
|
|
||||||
Balance at December 31, 2010, net of taxes
|
$
|
1
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(78,438
|
)
|
|
$
|
(385
|
)
|
|
$
|
(78,822
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current-period changes, before taxes
|
(1
|
)
|
|
(352
|
)
|
|
(6,776
|
)
|
|
(69,555
|
)
|
|
300
|
|
|
(76,384
|
)
|
||||||
Reclassifications to earnings, before taxes
|
—
|
|
|
—
|
|
|
754
|
|
|
5,569
|
|
|
51
|
|
|
6,374
|
|
||||||
Income taxes
|
—
|
|
|
—
|
|
|
2,320
|
|
|
24,685
|
|
|
(135
|
)
|
|
26,870
|
|
||||||
Balance at December 31, 2011, net of taxes
|
$
|
—
|
|
|
$
|
(352
|
)
|
|
$
|
(3,702
|
)
|
|
$
|
(117,739
|
)
|
|
$
|
(169
|
)
|
|
$
|
(121,962
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current-period changes, before taxes
|
—
|
|
|
126
|
|
|
1,384
|
|
|
19,281
|
|
|
61
|
|
|
20,852
|
|
||||||
Reclassifications to earnings, before taxes
|
—
|
|
|
—
|
|
|
2,637
|
|
|
10,074
|
|
|
10
|
|
|
12,721
|
|
||||||
Income taxes
|
—
|
|
|
(76
|
)
|
|
(1,549
|
)
|
|
(11,262
|
)
|
|
(28
|
)
|
|
(12,915
|
)
|
||||||
Balance at December 31, 2012, net of taxes
|
$
|
—
|
|
|
$
|
(302
|
)
|
|
$
|
(1,230
|
)
|
|
$
|
(99,646
|
)
|
|
$
|
(126
|
)
|
|
$
|
(101,304
|
)
|
(a)
|
Accumulated losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets will be recognized on a straight-line basis over the average remaining service period of active employees, which is between seven to ten years, to the extent that losses are not offset by gains in subsequent years. The estimated net loss and prior service cost that will be amortized from "Accumulated other comprehensive income (loss)" into pension expense in
2013
is
$8.6 million
.
|
|
Year Ended December 31
|
||||||||||
|
2012
|
|
2011
|
|
2010
|
||||||
Rental expense
|
$
|
29,367
|
|
|
$
|
23,855
|
|
|
$
|
15,267
|
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
2018 &
Thereafter
|
||||||||||||
Minimum payment
|
$
|
22,680
|
|
|
$
|
21,688
|
|
|
$
|
18,092
|
|
|
$
|
15,037
|
|
|
$
|
10,228
|
|
|
$
|
11,065
|
|
|
Year Ended December 31
|
||||||
|
2012
|
|
2011
|
||||
Asset retirement obligation at beginning of period
|
$
|
10,041
|
|
|
$
|
10,403
|
|
Liabilities incurred (Note 3)
|
10,256
|
|
|
—
|
|
||
Accretion expense
|
387
|
|
|
812
|
|
||
Payments
|
(30
|
)
|
|
(29
|
)
|
||
Revisions in estimated cash flows
|
41
|
|
|
(1,145
|
)
|
||
Asset retirement obligation at end of period
|
$
|
20,695
|
|
|
$
|
10,041
|
|
|
Year Ended December 31
|
||||||||||
2012
|
|
2011
|
|
2010
|
|||||||
Packaging
|
|
|
|
|
|
||||||
Linerboard
|
$
|
76.6
|
|
|
$
|
110.2
|
|
|
$
|
94.2
|
|
Newsprint
|
134.3
|
|
|
132.7
|
|
|
121.7
|
|
|||
Corrugated containers and sheets
|
833.9
|
|
|
627.0
|
|
|
388.0
|
|
|||
Other
|
82.6
|
|
|
76.3
|
|
|
65.3
|
|
|||
|
1,127.5
|
|
|
946.2
|
|
|
669.2
|
|
|||
Paper
|
|
|
|
|
|
||||||
Uncoated freesheet
|
1,334.3
|
|
|
1,334.5
|
|
|
1,309.8
|
|
|||
Corrugating medium
|
1.0
|
|
|
0.3
|
|
|
0.1
|
|
|||
Market pulp and other
|
60.4
|
|
|
91.8
|
|
|
84.7
|
|
|||
|
1,395.6
|
|
|
1,426.5
|
|
|
1,394.6
|
|
|||
|
|
|
|
|
|
||||||
Corporate and Other
|
32.3
|
|
|
31.4
|
|
|
30.0
|
|
|||
|
$
|
2,555.4
|
|
|
$
|
2,404.1
|
|
|
$
|
2,093.8
|
|
|
|
Sales
|
|
Income (Loss) Before Income Taxes
|
|
Depreciation,
Amortization, and Depletion
|
|
EBITDA
(c)
|
|
Capital Expenditures (d)
|
|
Assets
|
||||||||||||||||||||||||
Year Ended December 31, 2012
|
|
Trade
|
|
Related
Parties
|
|
Inter-
segment
|
|
Total
|
|
|
|
|
|
|||||||||||||||||||||||
Packaging
|
|
$
|
1,067.2
|
|
|
$
|
60.3
|
|
|
$
|
2.6
|
|
|
$
|
1,130.1
|
|
|
$
|
101.6
|
|
|
$
|
60.9
|
|
|
$
|
162.5
|
|
|
$
|
61.3
|
|
|
$
|
958.0
|
|
Paper
|
|
1,395.6
|
|
|
—
|
|
|
72.7
|
|
|
1,468.3
|
|
|
73.9
|
|
(a)
|
87.7
|
|
|
161.6
|
|
(a)
|
71.1
|
|
|
1,144.7
|
|
|||||||||
Corporate and Other
|
|
32.3
|
|
|
—
|
|
|
36.6
|
|
|
68.9
|
|
|
(27.8
|
)
|
|
3.7
|
|
|
(24.1
|
)
|
|
5.3
|
|
|
105.7
|
|
|||||||||
Intersegment eliminations
|
|
—
|
|
|
—
|
|
|
(112.0
|
)
|
|
(112.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
|
|
$
|
2,495.1
|
|
|
$
|
60.3
|
|
|
$
|
—
|
|
|
$
|
2,555.4
|
|
|
147.7
|
|
|
$
|
152.3
|
|
|
300.0
|
|
|
$
|
137.6
|
|
|
$
|
2,208.4
|
|
||
Interest expense
|
|
|
|
|
|
|
|
|
|
(61.7
|
)
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
|
0.2
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
$
|
86.1
|
|
|
|
|
$
|
300.0
|
|
|
|
|
|
|
|
Sales
|
|
Income (Loss) Before Income Taxes
|
|
Depreciation,
Amortization, and Depletion
|
|
EBITDA
(c)
|
|
Capital Expenditures (d)
|
|
Assets
|
||||||||||||||||||||||||
Year Ended December 31, 2011
|
|
Trade
|
|
Related
Parties
|
|
Inter-
segment
|
|
Total
|
|
|
|
|
|
|||||||||||||||||||||||
Packaging
|
|
$
|
906.2
|
|
|
$
|
40.1
|
|
|
$
|
3.5
|
|
|
$
|
949.7
|
|
|
$
|
105.0
|
|
(b)
|
$
|
50.5
|
|
|
$
|
155.5
|
|
(b)
|
$
|
49.2
|
|
|
$
|
957.3
|
|
Paper
|
|
1,426.5
|
|
|
—
|
|
|
70.0
|
|
|
1,496.5
|
|
|
112.1
|
|
|
89.5
|
|
|
201.5
|
|
|
74.2
|
|
|
1,190.9
|
|
|||||||||
Corporate and Other
|
|
31.4
|
|
|
—
|
|
|
36.9
|
|
|
68.3
|
|
|
(25.9
|
)
|
(b)
|
3.7
|
|
|
(22.1
|
)
|
(b)
|
5.3
|
|
|
138.0
|
|
|||||||||
Intersegment eliminations
|
|
—
|
|
|
—
|
|
|
(110.4
|
)
|
|
(110.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
|
|
$
|
2,364.0
|
|
|
$
|
40.1
|
|
|
$
|
—
|
|
|
$
|
2,404.1
|
|
|
191.2
|
|
|
$
|
143.8
|
|
|
334.9
|
|
|
$
|
128.8
|
|
|
$
|
2,286.1
|
|
||
Loss on extinguishment of debt
|
|
|
|
|
|
|
|
|
|
(2.3
|
)
|
|
|
|
(2.3
|
)
|
|
|
|
|
||||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
(63.8
|
)
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
$
|
125.3
|
|
|
|
|
$
|
332.6
|
|
|
|
|
|
|
|
Sales
|
|
Income (Loss) Before Income Taxes
|
|
Depreciation,
Amortization, and Depletion
|
|
EBITDA
(c)
|
|
Capital Expenditures (d)
|
|
Assets
|
||||||||||||||||||||||||
Year Ended December 31, 2010
|
|
Trade
|
|
Related
Parties
|
|
Inter-
segment
|
|
Total
|
|
|
|
|
|
|||||||||||||||||||||||
Packaging
|
|
$
|
636.2
|
|
|
$
|
33.0
|
|
|
$
|
2.7
|
|
|
$
|
671.9
|
|
|
$
|
65.0
|
|
|
$
|
38.6
|
|
|
$
|
103.6
|
|
|
$
|
38.6
|
|
|
$
|
505.6
|
|
Paper
|
|
1,394.6
|
|
|
—
|
|
|
63.8
|
|
|
1,458.3
|
|
|
151.5
|
|
|
87.4
|
|
|
238.9
|
|
|
67.8
|
|
|
1,187.9
|
|
|||||||||
Corporate and Other
|
|
27.4
|
|
|
2.7
|
|
|
35.3
|
|
|
65.4
|
|
|
(21.7
|
)
|
|
4.0
|
|
|
(17.7
|
)
|
|
5.1
|
|
|
245.4
|
|
|||||||||
Intersegment eliminations
|
|
—
|
|
|
—
|
|
|
(101.8
|
)
|
|
(101.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||||
|
|
$
|
2,058.1
|
|
|
$
|
35.6
|
|
|
$
|
—
|
|
|
$
|
2,093.8
|
|
|
194.9
|
|
|
$
|
129.9
|
|
|
324.8
|
|
|
$
|
111.6
|
|
|
$
|
1,939.0
|
|
||
Loss on extinguishment of debt
|
|
|
|
|
|
|
|
|
|
(22.2
|
)
|
|
|
|
(22.2
|
)
|
|
|
|
|
||||||||||||||||
Interest expense
|
|
|
|
|
|
|
|
|
|
(64.8
|
)
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
|
0.3
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
$
|
108.1
|
|
|
|
|
$
|
302.6
|
|
|
|
|
|
(a)
|
Included
$31.7 million
of charges related primarily to ceasing paper production on our one remaining paper machine at our St. Helens, Oregon, paper mill.
|
(b)
|
Included
$2.2 million
of expense recorded in our Packaging segment related to the inventory purchase price adjustments.
|
(c)
|
EBITDA represents income before interest (interest expense and interest income), income tax provision, and depreciation, amortization, and depletion. EBITDA is the primary measure used by our chief operating decision maker to evaluate segment operating performance and to decide how to allocate resources to segments. We believe EBITDA is useful to investors because it provides a means to evaluate the operating performance of our segments and our company on an ongoing basis using criteria that are used by our internal decision makers and because it is frequently used by investors and other interested parties in the evaluation of companies. We believe EBITDA is a meaningful measure because it presents a transparent view of our recurring operating performance and allows management to readily view operating trends, perform analytical comparisons, and identify strategies to improve operating performance. For example, we believe that the inclusion of items such as taxes, interest expense, and interest income distorts management's ability to assess and view the core operating trends in our segments. EBITDA, however, is not a measure of our liquidity or financial performance under generally accepted accounting principles (GAAP) and should not be considered as an alternative to net income, income from operations, or any other performance measure derived in accordance with GAAP or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of EBITDA instead of net income or segment income (loss) has limitations as an analytical tool, including the inability to determine profitability; the exclusion of interest expense, interest income, and associated significant cash requirements; and the exclusion of depreciation, amortization, and depletion, which represent significant and unavoidable operating costs, given the level of our indebtedness and the capital expenditures needed to maintain our businesses. Management compensates for these limitations by relying on our GAAP results. Our measures of EBITDA are not necessarily comparable to other similarly titled captions of other companies due to potential inconsistencies in the methods of calculation.
|
|
Boise Inc.
|
|
BZ Intermediate
|
||||||||||||||||||||
|
Year Ended December 31
|
||||||||||||||||||||||
|
2012
|
|
2011
|
|
2010
|
|
2012
|
|
2011
|
|
2010
|
||||||||||||
Net income
|
$
|
52.2
|
|
|
$
|
75.2
|
|
|
$
|
62.7
|
|
|
$
|
52.2
|
|
|
$
|
75.2
|
|
|
$
|
63.6
|
|
Interest expense
|
61.7
|
|
|
63.8
|
|
|
64.8
|
|
|
61.7
|
|
|
63.8
|
|
|
64.8
|
|
||||||
Interest income
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
|
(0.3
|
)
|
||||||
Income tax provision
|
34.0
|
|
|
50.1
|
|
|
45.4
|
|
|
34.0
|
|
|
50.1
|
|
|
44.5
|
|
||||||
Depreciation, amortization, and depletion
|
152.3
|
|
|
143.8
|
|
|
129.9
|
|
|
152.3
|
|
|
143.8
|
|
|
129.9
|
|
||||||
EBITDA
|
$
|
300.0
|
|
|
$
|
332.6
|
|
|
$
|
302.6
|
|
|
$
|
300.0
|
|
|
$
|
332.6
|
|
|
$
|
302.6
|
|
(d)
|
This figure represents "Expenditures for property and equipment" and excludes cash used for "Acquisition of businesses and facilities, net of cash acquired" as reported on our Consolidated Statements of Cash Flows.
|
|
2012
|
||||||||||||||
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter (a)
|
|
Fourth
Quarter (a)
|
||||||||
Net sales
|
$
|
644.8
|
|
|
$
|
637.8
|
|
|
$
|
645.2
|
|
|
$
|
627.5
|
|
Income from operations
|
49.7
|
|
|
37.7
|
|
|
21.3
|
|
|
38.8
|
|
||||
Net income
|
21.3
|
|
|
13.7
|
|
|
3.6
|
|
|
13.5
|
|
||||
Net income per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
0.22
|
|
|
0.14
|
|
|
0.04
|
|
|
0.14
|
|
||||
Diluted
|
0.21
|
|
|
0.14
|
|
|
0.04
|
|
|
0.13
|
|
||||
Common stock dividends per share
|
0.48
|
|
|
—
|
|
|
—
|
|
|
0.72
|
|
||||
Common stock prices (d)
|
|
|
|
|
|
|
|
||||||||
High
|
8.49
|
|
|
8.21
|
|
|
8.93
|
|
|
9.06
|
|
||||
Low
|
7.25
|
|
|
6.48
|
|
|
6.86
|
|
|
7.63
|
|
||||
|
|
|
|
|
|
|
|
||||||||
|
2011
|
||||||||||||||
|
First
Quarter (b)
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter (c)
|
||||||||
Net sales
|
$
|
568.8
|
|
|
$
|
603.1
|
|
|
$
|
631.7
|
|
|
$
|
600.4
|
|
Income from operations
|
48.1
|
|
|
34.4
|
|
|
62.6
|
|
|
45.9
|
|
||||
Net income
|
18.7
|
|
|
11.9
|
|
|
28.4
|
|
|
16.3
|
|
||||
Net income per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
0.23
|
|
|
0.11
|
|
|
0.25
|
|
|
0.16
|
|
||||
Diluted
|
0.21
|
|
|
0.11
|
|
|
0.24
|
|
|
0.15
|
|
||||
Common stock dividends per share
|
—
|
|
|
0.40
|
|
|
—
|
|
|
—
|
|
||||
Common stock prices (d)
|
|
|
|
|
|
|
|
||||||||
High
|
9.55
|
|
|
9.82
|
|
|
8.12
|
|
|
7.12
|
|
||||
Low
|
8.10
|
|
|
6.75
|
|
|
4.42
|
|
|
4.71
|
|
(a)
|
Third quarter and fourth quarter 2012 included
$31.3 million
and
$0.5 million
, respectively, of charges related primarily to ceasing paper production on our one remaining paper machine at our St. Helens, Oregon, paper mill.
|
(b)
|
First quarter 2011 included
$2.2 million
of expense related to inventory purchase price accounting adjustments.
|
(c)
|
Fourth quarter 2011 included
$2.3 million
of expense recorded in the Corporate and Other segment associated with entering into a new credit agreement.
|
(d)
|
Our common stock trades on the New York Stock Exchange under the symbol BZ. Common stock prices are based on daily closing prices.
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
$
|
—
|
|
|
$
|
14,956
|
|
|
$
|
2,431,516
|
|
|
$
|
48,620
|
|
|
$
|
—
|
|
|
$
|
2,495,092
|
|
Intercompany
|
—
|
|
|
—
|
|
|
5,213
|
|
|
113,566
|
|
|
(118,779
|
)
|
|
—
|
|
||||||
Related parties
|
—
|
|
|
—
|
|
|
—
|
|
|
60,271
|
|
|
—
|
|
|
60,271
|
|
||||||
|
—
|
|
|
14,956
|
|
|
2,436,729
|
|
|
222,457
|
|
|
(118,779
|
)
|
|
2,555,363
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
—
|
|
|
13,817
|
|
|
1,916,907
|
|
|
192,099
|
|
|
(118,779
|
)
|
|
2,004,044
|
|
||||||
Fiber costs from related parties
|
—
|
|
|
—
|
|
|
—
|
|
|
19,772
|
|
|
—
|
|
|
19,772
|
|
||||||
Depreciation, amortization, and depletion
|
—
|
|
|
2,978
|
|
|
146,449
|
|
|
2,879
|
|
|
—
|
|
|
152,306
|
|
||||||
Selling and distribution expenses
|
—
|
|
|
—
|
|
|
120,845
|
|
|
982
|
|
|
—
|
|
|
121,827
|
|
||||||
General and administrative expenses
|
—
|
|
|
28,313
|
|
|
45,971
|
|
|
5,464
|
|
|
—
|
|
|
79,748
|
|
||||||
St. Helens charges
|
—
|
|
|
—
|
|
|
27,559
|
|
|
—
|
|
|
—
|
|
|
27,559
|
|
||||||
Other (income) expense, net
|
—
|
|
|
1,136
|
|
|
1,049
|
|
|
387
|
|
|
—
|
|
|
2,572
|
|
||||||
|
—
|
|
|
46,244
|
|
|
2,258,780
|
|
|
221,583
|
|
|
(118,779
|
)
|
|
2,407,828
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from operations
|
—
|
|
|
(31,288
|
)
|
|
177,949
|
|
|
874
|
|
|
—
|
|
|
147,535
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange gain
|
—
|
|
|
145
|
|
|
10
|
|
|
24
|
|
|
—
|
|
|
179
|
|
||||||
Interest expense
|
—
|
|
|
(61,693
|
)
|
|
—
|
|
|
(47
|
)
|
|
—
|
|
|
(61,740
|
)
|
||||||
Interest expense—intercompany
|
—
|
|
|
(191
|
)
|
|
—
|
|
|
(55
|
)
|
|
246
|
|
|
—
|
|
||||||
Interest income
|
—
|
|
|
48
|
|
|
60
|
|
|
52
|
|
|
—
|
|
|
160
|
|
||||||
Interest income—intercompany
|
—
|
|
|
55
|
|
|
191
|
|
|
—
|
|
|
(246
|
)
|
|
—
|
|
||||||
|
—
|
|
|
(61,636
|
)
|
|
261
|
|
|
(26
|
)
|
|
—
|
|
|
(61,401
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in net income of affiliates
|
—
|
|
|
(92,924
|
)
|
|
178,210
|
|
|
848
|
|
|
—
|
|
|
86,134
|
|
||||||
Income tax provision
|
—
|
|
|
(32,431
|
)
|
|
(1,500
|
)
|
|
(53
|
)
|
|
—
|
|
|
(33,984
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in net income of affiliates
|
—
|
|
|
(125,355
|
)
|
|
176,710
|
|
|
795
|
|
|
—
|
|
|
52,150
|
|
||||||
Equity in net income of affiliates
|
52,150
|
|
|
177,505
|
|
|
—
|
|
|
—
|
|
|
(229,655
|
)
|
|
—
|
|
||||||
Net income
|
$
|
52,150
|
|
|
$
|
52,150
|
|
|
$
|
176,710
|
|
|
$
|
795
|
|
|
$
|
(229,655
|
)
|
|
$
|
52,150
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
$
|
—
|
|
|
$
|
14,657
|
|
|
$
|
2,340,570
|
|
|
$
|
8,797
|
|
|
$
|
—
|
|
|
$
|
2,364,024
|
|
Intercompany
|
—
|
|
|
—
|
|
|
40
|
|
|
100,536
|
|
|
(100,576
|
)
|
|
—
|
|
||||||
Related parties
|
—
|
|
|
—
|
|
|
—
|
|
|
40,057
|
|
|
—
|
|
|
40,057
|
|
||||||
|
—
|
|
|
14,657
|
|
|
2,340,610
|
|
|
149,390
|
|
|
(100,576
|
)
|
|
2,404,081
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
—
|
|
|
13,835
|
|
|
1,837,170
|
|
|
129,842
|
|
|
(100,576
|
)
|
|
1,880,271
|
|
||||||
Fiber costs from related parties
|
—
|
|
|
—
|
|
|
—
|
|
|
18,763
|
|
|
—
|
|
|
18,763
|
|
||||||
Depreciation, amortization, and depletion
|
—
|
|
|
3,091
|
|
|
140,563
|
|
|
104
|
|
|
—
|
|
|
143,758
|
|
||||||
Selling and distribution expenses
|
—
|
|
|
—
|
|
|
107,302
|
|
|
352
|
|
|
—
|
|
|
107,654
|
|
||||||
General and administrative expenses
|
—
|
|
|
25,452
|
|
|
34,688
|
|
|
447
|
|
|
—
|
|
|
60,587
|
|
||||||
Other (income) expense, net
|
—
|
|
|
1,600
|
|
|
730
|
|
|
(336
|
)
|
|
—
|
|
|
1,994
|
|
||||||
|
—
|
|
|
43,978
|
|
|
2,120,453
|
|
|
149,172
|
|
|
(100,576
|
)
|
|
2,213,027
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from operations
|
—
|
|
|
(29,321
|
)
|
|
220,157
|
|
|
218
|
|
|
—
|
|
|
191,054
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange gain (loss)
|
—
|
|
|
(390
|
)
|
|
453
|
|
|
72
|
|
|
—
|
|
|
135
|
|
||||||
Loss on extinguishment of debt
|
—
|
|
|
(2,300
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,300
|
)
|
||||||
Interest expense
|
—
|
|
|
(63,814
|
)
|
|
—
|
|
|
(6
|
)
|
|
3
|
|
|
(63,817
|
)
|
||||||
Interest expense—intercompany
|
—
|
|
|
(188
|
)
|
|
—
|
|
|
(15
|
)
|
|
203
|
|
|
—
|
|
||||||
Interest income
|
—
|
|
|
260
|
|
|
9
|
|
|
—
|
|
|
—
|
|
|
269
|
|
||||||
Interest income—intercompany
|
—
|
|
|
18
|
|
|
188
|
|
|
—
|
|
|
(206
|
)
|
|
—
|
|
||||||
|
—
|
|
|
(66,414
|
)
|
|
650
|
|
|
51
|
|
|
—
|
|
|
(65,713
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in net income of affiliates
|
—
|
|
|
(95,735
|
)
|
|
220,807
|
|
|
269
|
|
|
—
|
|
|
125,341
|
|
||||||
Income tax provision
|
—
|
|
|
(48,372
|
)
|
|
(1,662
|
)
|
|
(97
|
)
|
|
—
|
|
|
(50,131
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in net income of affiliates
|
—
|
|
|
(144,107
|
)
|
|
219,145
|
|
|
172
|
|
|
—
|
|
|
75,210
|
|
||||||
Equity in net income of affiliates
|
75,210
|
|
|
219,317
|
|
|
—
|
|
|
—
|
|
|
(294,527
|
)
|
|
—
|
|
||||||
Net income
|
$
|
75,210
|
|
|
$
|
75,210
|
|
|
$
|
219,145
|
|
|
$
|
172
|
|
|
$
|
(294,527
|
)
|
|
$
|
75,210
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
$
|
—
|
|
|
$
|
11,994
|
|
|
$
|
2,039,308
|
|
|
$
|
6,830
|
|
|
$
|
—
|
|
|
$
|
2,058,132
|
|
Intercompany
|
—
|
|
|
—
|
|
|
—
|
|
|
110,619
|
|
|
(110,619
|
)
|
|
—
|
|
||||||
Related parties
|
—
|
|
|
2,364
|
|
|
333
|
|
|
32,948
|
|
|
—
|
|
|
35,645
|
|
||||||
|
—
|
|
|
14,358
|
|
|
2,039,641
|
|
|
150,397
|
|
|
(110,619
|
)
|
|
2,093,777
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
—
|
|
|
14,039
|
|
|
1,605,480
|
|
|
125,139
|
|
|
(110,619
|
)
|
|
1,634,039
|
|
||||||
Fiber costs from related parties
|
—
|
|
|
—
|
|
|
|
|
|
25,259
|
|
|
—
|
|
|
25,259
|
|
||||||
Depreciation, amortization, and depletion
|
—
|
|
|
3,454
|
|
|
126,472
|
|
|
—
|
|
|
—
|
|
|
129,926
|
|
||||||
Selling and distribution expenses
|
—
|
|
|
—
|
|
|
57,873
|
|
|
234
|
|
|
—
|
|
|
58,107
|
|
||||||
General and administrative expenses
|
—
|
|
|
21,949
|
|
|
30,324
|
|
|
—
|
|
|
—
|
|
|
52,273
|
|
||||||
Other (income) expense, net
|
—
|
|
|
225
|
|
|
249
|
|
|
(261
|
)
|
|
—
|
|
|
213
|
|
||||||
|
—
|
|
|
39,667
|
|
|
1,820,398
|
|
|
150,371
|
|
|
(110,619
|
)
|
|
1,899,817
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from operations
|
—
|
|
|
(25,309
|
)
|
|
219,243
|
|
|
26
|
|
|
—
|
|
|
193,960
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange gain
|
—
|
|
|
871
|
|
|
19
|
|
|
—
|
|
|
—
|
|
|
890
|
|
||||||
Loss on extinguishment of debt
|
—
|
|
|
(22,225
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,225
|
)
|
||||||
Interest expense
|
—
|
|
|
(64,825
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(64,825
|
)
|
||||||
Interest expense—intercompany
|
—
|
|
|
(212
|
)
|
|
—
|
|
|
(16
|
)
|
|
228
|
|
|
—
|
|
||||||
Interest income
|
—
|
|
|
299
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
306
|
|
||||||
Interest income—intercompany
|
—
|
|
|
16
|
|
|
212
|
|
|
—
|
|
|
(228
|
)
|
|
—
|
|
||||||
|
—
|
|
|
(86,076
|
)
|
|
238
|
|
|
(16
|
)
|
|
—
|
|
|
(85,854
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in net income of affiliates
|
—
|
|
|
(111,385
|
)
|
|
219,481
|
|
|
10
|
|
|
—
|
|
|
108,106
|
|
||||||
Income tax (provision) benefit
|
—
|
|
|
(43,187
|
)
|
|
(1,350
|
)
|
|
8
|
|
|
—
|
|
|
(44,529
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in net income of affiliates
|
—
|
|
|
(154,572
|
)
|
|
218,131
|
|
|
18
|
|
|
—
|
|
|
63,577
|
|
||||||
Equity in net income of affiliates
|
63,577
|
|
|
218,149
|
|
|
—
|
|
|
—
|
|
|
(281,726
|
)
|
|
—
|
|
||||||
Net income
|
$
|
63,577
|
|
|
$
|
63,577
|
|
|
$
|
218,131
|
|
|
$
|
18
|
|
|
$
|
(281,726
|
)
|
|
$
|
63,577
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income
|
$
|
52,150
|
|
|
$
|
52,150
|
|
|
$
|
176,710
|
|
|
$
|
795
|
|
|
$
|
(229,655
|
)
|
|
$
|
52,150
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
50
|
|
|
—
|
|
|
50
|
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in fair value
|
—
|
|
|
850
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
850
|
|
||||||
Loss included in net income
|
—
|
|
|
1,622
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,622
|
|
||||||
Actuarial gain and prior service cost (including related amortization) for defined benefit pension plans
|
—
|
|
|
18,033
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18,033
|
|
||||||
Other
|
—
|
|
|
103
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
103
|
|
||||||
Equity in other comprehensive income of affiliates
|
20,658
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
(20,708
|
)
|
|
—
|
|
||||||
|
20,658
|
|
|
20,658
|
|
|
—
|
|
|
50
|
|
|
(20,708
|
)
|
|
20,658
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
72,808
|
|
|
$
|
72,808
|
|
|
$
|
176,710
|
|
|
$
|
845
|
|
|
$
|
(250,363
|
)
|
|
$
|
72,808
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income
|
$
|
75,210
|
|
|
$
|
75,210
|
|
|
$
|
219,145
|
|
|
$
|
172
|
|
|
$
|
(294,527
|
)
|
|
$
|
75,210
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
(352
|
)
|
|
—
|
|
|
(352
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in fair value
|
—
|
|
|
(4,165
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,165
|
)
|
||||||
Loss included in net income
|
—
|
|
|
463
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
463
|
|
||||||
Actuarial loss and prior service cost (including related amortization) for defined benefit pension plans
|
—
|
|
|
(39,149
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(39,149
|
)
|
||||||
Other
|
—
|
|
|
63
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63
|
|
||||||
Equity in other comprehensive loss of affiliates
|
(43,140
|
)
|
|
(352
|
)
|
|
—
|
|
|
—
|
|
|
43,492
|
|
|
—
|
|
||||||
|
(43,140
|
)
|
|
(43,140
|
)
|
|
—
|
|
|
(352
|
)
|
|
43,492
|
|
|
(43,140
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
32,070
|
|
|
$
|
32,070
|
|
|
$
|
219,145
|
|
|
$
|
(180
|
)
|
|
$
|
(251,035
|
)
|
|
$
|
32,070
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income
|
$
|
63,577
|
|
|
$
|
63,577
|
|
|
$
|
218,131
|
|
|
$
|
18
|
|
|
$
|
(281,726
|
)
|
|
$
|
63,577
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss included in net income
|
—
|
|
|
553
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
553
|
|
||||||
Actuarial loss and prior service cost (including related amortization) for defined benefit pension plans
|
—
|
|
|
(7,744
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(7,744
|
)
|
||||||
Other
|
—
|
|
|
(78
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(78
|
)
|
||||||
Equity in other comprehensive loss of affiliates
|
(7,269
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7,269
|
|
|
—
|
|
||||||
|
(7,269
|
)
|
|
(7,269
|
)
|
|
—
|
|
|
—
|
|
|
7,269
|
|
|
(7,269
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income
|
$
|
56,308
|
|
|
$
|
56,308
|
|
|
$
|
218,131
|
|
|
$
|
18
|
|
|
$
|
(274,457
|
)
|
|
$
|
56,308
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
40,801
|
|
|
$
|
516
|
|
|
$
|
8,390
|
|
|
$
|
—
|
|
|
$
|
49,707
|
|
Receivables
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade, less allowances
|
—
|
|
|
1,458
|
|
|
230,178
|
|
|
8,823
|
|
|
—
|
|
|
240,459
|
|
||||||
Intercompany
|
—
|
|
|
2,234
|
|
|
1,580
|
|
|
2,670
|
|
|
(6,484
|
)
|
|
—
|
|
||||||
Other
|
—
|
|
|
2,880
|
|
|
4,266
|
|
|
1,121
|
|
|
—
|
|
|
8,267
|
|
||||||
Inventories
|
—
|
|
|
3
|
|
|
291,065
|
|
|
3,416
|
|
|
—
|
|
|
294,484
|
|
||||||
Deferred income taxes
|
—
|
|
|
17,955
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17,955
|
|
||||||
Prepaid and other
|
—
|
|
|
6,952
|
|
|
1,021
|
|
|
855
|
|
|
—
|
|
|
8,828
|
|
||||||
|
—
|
|
|
72,283
|
|
|
528,626
|
|
|
25,275
|
|
|
(6,484
|
)
|
|
619,700
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment, net
|
—
|
|
|
7,930
|
|
|
1,203,384
|
|
|
11,687
|
|
|
—
|
|
|
1,223,001
|
|
||||||
Fiber farms
|
—
|
|
|
—
|
|
|
24,311
|
|
|
—
|
|
|
—
|
|
|
24,311
|
|
||||||
|
—
|
|
|
7,930
|
|
|
1,227,695
|
|
|
11,687
|
|
|
—
|
|
|
1,247,312
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred financing costs
|
—
|
|
|
26,677
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,677
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
153,576
|
|
|
6,554
|
|
|
—
|
|
|
160,130
|
|
||||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
133,115
|
|
|
14,449
|
|
|
—
|
|
|
147,564
|
|
||||||
Investments in affiliates
|
756,683
|
|
|
1,778,531
|
|
|
—
|
|
|
—
|
|
|
(2,535,214
|
)
|
|
—
|
|
||||||
Intercompany notes receivable
|
—
|
|
|
3,400
|
|
|
1,524
|
|
|
—
|
|
|
(4,924
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
5,992
|
|
|
902
|
|
|
135
|
|
|
—
|
|
|
7,029
|
|
||||||
Total assets
|
$
|
756,683
|
|
|
$
|
1,894,813
|
|
|
$
|
2,045,438
|
|
|
$
|
58,100
|
|
|
$
|
(2,546,622
|
)
|
|
$
|
2,208,412
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
LIABILITIES AND CAPITAL
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current portion of long-term debt
|
$
|
—
|
|
|
$
|
10,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,000
|
|
Accounts payable
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
—
|
|
|
18,547
|
|
|
160,152
|
|
|
6,379
|
|
|
—
|
|
|
185,078
|
|
||||||
Intercompany
|
—
|
|
|
571
|
|
|
2,090
|
|
|
3,842
|
|
|
(6,503
|
)
|
|
—
|
|
||||||
Accrued liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Compensation and benefits
|
—
|
|
|
22,206
|
|
|
47,605
|
|
|
1,139
|
|
|
—
|
|
|
70,950
|
|
||||||
Interest payable
|
—
|
|
|
10,516
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,516
|
|
||||||
Other
|
—
|
|
|
3,773
|
|
|
14,033
|
|
|
2,703
|
|
|
19
|
|
|
20,528
|
|
||||||
|
—
|
|
|
65,613
|
|
|
223,880
|
|
|
14,063
|
|
|
(6,484
|
)
|
|
297,072
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, less current portion
|
—
|
|
|
770,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
770,000
|
|
||||||
Intercompany notes payable
|
—
|
|
|
—
|
|
|
—
|
|
|
4,924
|
|
|
(4,924
|
)
|
|
—
|
|
||||||
|
—
|
|
|
770,000
|
|
|
—
|
|
|
4,924
|
|
|
(4,924
|
)
|
|
770,000
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred income taxes
|
—
|
|
|
132,841
|
|
|
53,497
|
|
|
3,485
|
|
|
—
|
|
|
189,823
|
|
||||||
Compensation and benefits
|
—
|
|
|
121,606
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
121,682
|
|
||||||
Other long-term liabilities
|
—
|
|
|
48,070
|
|
|
24,932
|
|
|
150
|
|
|
—
|
|
|
73,152
|
|
||||||
|
—
|
|
|
302,517
|
|
|
78,505
|
|
|
3,635
|
|
|
—
|
|
|
384,657
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commitments and contingent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Business unit equity
|
857,987
|
|
|
857,987
|
|
|
1,743,053
|
|
|
35,779
|
|
|
(2,636,819
|
)
|
|
857,987
|
|
||||||
Accumulated other comprehensive loss
|
(101,304
|
)
|
|
(101,304
|
)
|
|
—
|
|
|
(301
|
)
|
|
101,605
|
|
|
(101,304
|
)
|
||||||
|
756,683
|
|
|
756,683
|
|
|
1,743,053
|
|
|
35,478
|
|
|
(2,535,214
|
)
|
|
756,683
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and capital
|
$
|
756,683
|
|
|
$
|
1,894,813
|
|
|
$
|
2,045,438
|
|
|
$
|
58,100
|
|
|
$
|
(2,546,622
|
)
|
|
$
|
2,208,412
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
82,532
|
|
|
$
|
9,737
|
|
|
$
|
4,727
|
|
|
$
|
—
|
|
|
$
|
96,996
|
|
Receivables
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade, less allowances
|
—
|
|
|
1,183
|
|
|
220,621
|
|
|
7,034
|
|
|
—
|
|
|
228,838
|
|
||||||
Intercompany
|
—
|
|
|
40
|
|
|
21
|
|
|
2,099
|
|
|
(2,160
|
)
|
|
—
|
|
||||||
Other
|
—
|
|
|
2,477
|
|
|
5,064
|
|
|
81
|
|
|
—
|
|
|
7,622
|
|
||||||
Inventories
|
—
|
|
|
3
|
|
|
304,490
|
|
|
2,812
|
|
|
—
|
|
|
307,305
|
|
||||||
Deferred income taxes
|
—
|
|
|
20,379
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
20,379
|
|
||||||
Prepaid and other
|
—
|
|
|
4,467
|
|
|
2,588
|
|
|
(111
|
)
|
|
—
|
|
|
6,944
|
|
||||||
|
—
|
|
|
111,081
|
|
|
542,521
|
|
|
16,642
|
|
|
(2,160
|
)
|
|
668,084
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment, net
|
—
|
|
|
5,652
|
|
|
1,217,520
|
|
|
12,097
|
|
|
—
|
|
|
1,235,269
|
|
||||||
Fiber farms
|
—
|
|
|
—
|
|
|
21,193
|
|
|
—
|
|
|
—
|
|
|
21,193
|
|
||||||
|
—
|
|
|
5,652
|
|
|
1,238,713
|
|
|
12,097
|
|
|
—
|
|
|
1,256,462
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred financing costs
|
—
|
|
|
30,956
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30,956
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
156,305
|
|
|
5,386
|
|
|
—
|
|
|
161,691
|
|
||||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
143,986
|
|
|
15,134
|
|
|
—
|
|
|
159,120
|
|
||||||
Investments in affiliates
|
803,344
|
|
|
1,817,537
|
|
|
—
|
|
|
—
|
|
|
(2,620,881
|
)
|
|
—
|
|
||||||
Intercompany notes receivable
|
—
|
|
|
3,400
|
|
|
—
|
|
|
—
|
|
|
(3,400
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
5,805
|
|
|
3,948
|
|
|
4
|
|
|
—
|
|
|
9,757
|
|
||||||
Total assets
|
$
|
803,344
|
|
|
$
|
1,974,431
|
|
|
$
|
2,085,473
|
|
|
$
|
49,263
|
|
|
$
|
(2,626,441
|
)
|
|
$
|
2,286,070
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
LIABILITIES AND CAPITAL
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current portion of long-term debt
|
$
|
—
|
|
|
$
|
10,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10,000
|
|
Accounts payable
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
—
|
|
|
19,566
|
|
|
176,575
|
|
|
6,443
|
|
|
—
|
|
|
202,584
|
|
||||||
Intercompany
|
—
|
|
|
—
|
|
|
2,119
|
|
|
1
|
|
|
(2,120
|
)
|
|
—
|
|
||||||
Accrued liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Compensation and benefits
|
—
|
|
|
24,581
|
|
|
39,457
|
|
|
869
|
|
|
—
|
|
|
64,907
|
|
||||||
Interest payable
|
—
|
|
|
10,528
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,528
|
|
||||||
Other
|
—
|
|
|
8,626
|
|
|
13,769
|
|
|
185
|
|
|
(40
|
)
|
|
22,540
|
|
||||||
|
—
|
|
|
73,301
|
|
|
231,920
|
|
|
7,498
|
|
|
(2,160
|
)
|
|
310,559
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, less current portion
|
—
|
|
|
790,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
790,000
|
|
||||||
Intercompany notes payable
|
—
|
|
|
—
|
|
|
—
|
|
|
3,400
|
|
|
(3,400
|
)
|
|
—
|
|
||||||
|
—
|
|
|
790,000
|
|
|
—
|
|
|
3,400
|
|
|
(3,400
|
)
|
|
790,000
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred income taxes
|
—
|
|
|
94,822
|
|
|
53,365
|
|
|
4,525
|
|
|
—
|
|
|
152,712
|
|
||||||
Compensation and benefits
|
—
|
|
|
172,305
|
|
|
89
|
|
|
—
|
|
|
—
|
|
|
172,394
|
|
||||||
Other long-term liabilities
|
—
|
|
|
40,659
|
|
|
16,261
|
|
|
141
|
|
|
—
|
|
|
57,061
|
|
||||||
|
—
|
|
|
307,786
|
|
|
69,715
|
|
|
4,666
|
|
|
—
|
|
|
382,167
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commitments and contingent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Business unit equity
|
925,306
|
|
|
925,306
|
|
|
1,783,838
|
|
|
34,051
|
|
|
(2,743,195
|
)
|
|
925,306
|
|
||||||
Accumulated other comprehensive loss
|
(121,962
|
)
|
|
(121,962
|
)
|
|
—
|
|
|
(352
|
)
|
|
122,314
|
|
|
(121,962
|
)
|
||||||
|
803,344
|
|
|
803,344
|
|
|
1,783,838
|
|
|
33,699
|
|
|
(2,620,881
|
)
|
|
803,344
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and capital
|
$
|
803,344
|
|
|
$
|
1,974,431
|
|
|
$
|
2,085,473
|
|
|
$
|
49,263
|
|
|
$
|
(2,626,441
|
)
|
|
$
|
2,286,070
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash provided by (used for) operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
$
|
52,150
|
|
|
$
|
52,150
|
|
|
$
|
176,710
|
|
|
$
|
795
|
|
|
$
|
(229,655
|
)
|
|
$
|
52,150
|
|
Items in net income not using
(providing) cash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in net income of affiliates
|
(52,150
|
)
|
|
(177,505
|
)
|
|
—
|
|
|
—
|
|
|
229,655
|
|
|
—
|
|
||||||
Depreciation, depletion, and amortization of deferred financing costs and other
|
—
|
|
|
7,712
|
|
|
146,449
|
|
|
2,879
|
|
|
—
|
|
|
157,040
|
|
||||||
Share-based compensation expense
|
—
|
|
|
5,983
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,983
|
|
||||||
Pension expense
|
—
|
|
|
10,219
|
|
|
1,060
|
|
|
—
|
|
|
—
|
|
|
11,279
|
|
||||||
Deferred income taxes
|
—
|
|
|
33,581
|
|
|
108
|
|
|
(5
|
)
|
|
—
|
|
|
33,684
|
|
||||||
St. Helens charges
|
—
|
|
|
—
|
|
|
28,481
|
|
|
—
|
|
|
—
|
|
|
28,481
|
|
||||||
Other
|
—
|
|
|
224
|
|
|
1,640
|
|
|
4
|
|
|
—
|
|
|
1,868
|
|
||||||
Decrease (increase) in working capital
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Receivables
|
—
|
|
|
(1,973
|
)
|
|
(9,297
|
)
|
|
(2,857
|
)
|
|
4,324
|
|
|
(9,803
|
)
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
8,896
|
|
|
(760
|
)
|
|
—
|
|
|
8,136
|
|
||||||
Prepaid expenses
|
—
|
|
|
(1,966
|
)
|
|
1,567
|
|
|
(415
|
)
|
|
—
|
|
|
(814
|
)
|
||||||
Accounts payable and accrued liabilities
|
—
|
|
|
(3,579
|
)
|
|
(11,964
|
)
|
|
3,362
|
|
|
(4,324
|
)
|
|
(16,505
|
)
|
||||||
Current and deferred income taxes
|
—
|
|
|
(1,650
|
)
|
|
—
|
|
|
(288
|
)
|
|
—
|
|
|
(1,938
|
)
|
||||||
Pension payments
|
—
|
|
|
(35,205
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35,205
|
)
|
||||||
Other
|
—
|
|
|
3,510
|
|
|
(4,368
|
)
|
|
1,532
|
|
|
—
|
|
|
674
|
|
||||||
Cash provided by (used for) operations
|
—
|
|
|
(108,499
|
)
|
|
339,282
|
|
|
4,247
|
|
|
—
|
|
|
235,030
|
|
||||||
Cash provided by (used for) investment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenditures for property and equipment
|
—
|
|
|
(4,677
|
)
|
|
(132,190
|
)
|
|
(775
|
)
|
|
—
|
|
|
(137,642
|
)
|
||||||
Other
|
—
|
|
|
146
|
|
|
1,182
|
|
|
65
|
|
|
—
|
|
|
1,393
|
|
||||||
Cash used for investment
|
—
|
|
|
(4,531
|
)
|
|
(131,008
|
)
|
|
(710
|
)
|
|
—
|
|
|
(136,249
|
)
|
||||||
Cash provided by (used for) financing
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Issuances of long-term debt
|
—
|
|
|
5,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,000
|
|
||||||
Payments of long-term debt
|
—
|
|
|
(25,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,000
|
)
|
||||||
Payments of financing costs
|
—
|
|
|
(188
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(188
|
)
|
||||||
Payments (to) from Boise Inc., net
|
(124,824
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(124,824
|
)
|
||||||
Due to (from) affiliates
|
124,824
|
|
|
91,737
|
|
|
(217,495
|
)
|
|
934
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
(250
|
)
|
|
—
|
|
|
(808
|
)
|
|
—
|
|
|
(1,058
|
)
|
||||||
Cash provided by (used for) financing
|
—
|
|
|
71,299
|
|
|
(217,495
|
)
|
|
126
|
|
|
—
|
|
|
(146,070
|
)
|
||||||
Increase (decrease) in cash and cash equivalents
|
—
|
|
|
(41,731
|
)
|
|
(9,221
|
)
|
|
3,663
|
|
|
—
|
|
|
(47,289
|
)
|
||||||
Balance at beginning of the period
|
—
|
|
|
82,532
|
|
|
9,737
|
|
|
4,727
|
|
|
—
|
|
|
96,996
|
|
||||||
Balance at end of the period
|
$
|
—
|
|
|
$
|
40,801
|
|
|
$
|
516
|
|
|
$
|
8,390
|
|
|
$
|
—
|
|
|
$
|
49,707
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash provided by (used for) operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
$
|
75,210
|
|
|
$
|
75,210
|
|
|
$
|
219,145
|
|
|
$
|
172
|
|
|
$
|
(294,527
|
)
|
|
$
|
75,210
|
|
Items in net income not using
(providing) cash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in net income of affiliates
|
(75,210
|
)
|
|
(219,317
|
)
|
|
—
|
|
|
—
|
|
|
294,527
|
|
|
—
|
|
||||||
Depreciation, depletion, and amortization of deferred financing costs and other
|
—
|
|
|
9,048
|
|
|
140,563
|
|
|
104
|
|
|
—
|
|
|
149,715
|
|
||||||
Share-based compensation expense
|
—
|
|
|
3,695
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,695
|
|
||||||
Pension expense
|
—
|
|
|
10,916
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,916
|
|
||||||
Deferred income taxes
|
—
|
|
|
43,904
|
|
|
542
|
|
|
—
|
|
|
—
|
|
|
44,446
|
|
||||||
Other
|
—
|
|
|
408
|
|
|
1,542
|
|
|
(72
|
)
|
|
—
|
|
|
1,878
|
|
||||||
Loss on extinguishment of debt
|
—
|
|
|
2,300
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,300
|
|
||||||
Decrease (increase) in working capital, net of acquisitions
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Receivables
|
—
|
|
|
(884
|
)
|
|
3,471
|
|
|
(1,487
|
)
|
|
524
|
|
|
1,624
|
|
||||||
Inventories
|
—
|
|
|
12
|
|
|
(22,346
|
)
|
|
97
|
|
|
—
|
|
|
(22,237
|
)
|
||||||
Prepaid expenses
|
—
|
|
|
233
|
|
|
(437
|
)
|
|
(71
|
)
|
|
—
|
|
|
(275
|
)
|
||||||
Accounts payable and accrued liabilities
|
—
|
|
|
6,724
|
|
|
(3,744
|
)
|
|
1,347
|
|
|
(524
|
)
|
|
3,803
|
|
||||||
Current and deferred income taxes
|
—
|
|
|
2,920
|
|
|
1,250
|
|
|
317
|
|
|
—
|
|
|
4,487
|
|
||||||
Pension payments
|
—
|
|
|
(25,414
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,414
|
)
|
||||||
Other
|
—
|
|
|
(3,660
|
)
|
|
281
|
|
|
3,422
|
|
|
—
|
|
|
43
|
|
||||||
Cash provided by (used for) operations
|
—
|
|
|
(93,905
|
)
|
|
340,267
|
|
|
3,829
|
|
|
—
|
|
|
250,191
|
|
||||||
Cash provided by (used for) investment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisitions of business and facilities, net of cash acquired
|
—
|
|
|
—
|
|
|
(292,600
|
)
|
|
(33,623
|
)
|
|
—
|
|
|
(326,223
|
)
|
||||||
Expenditures for property and equipment
|
—
|
|
|
(3,633
|
)
|
|
(125,129
|
)
|
|
—
|
|
|
—
|
|
|
(128,762
|
)
|
||||||
Purchases of short-term investments
|
—
|
|
|
(3,494
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,494
|
)
|
||||||
Maturities of short-term investments
|
—
|
|
|
14,114
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,114
|
|
||||||
Other
|
—
|
|
|
(390
|
)
|
|
1,743
|
|
|
(305
|
)
|
|
—
|
|
|
1,048
|
|
||||||
Cash provided by (used for) investment
|
—
|
|
|
6,597
|
|
|
(415,986
|
)
|
|
(33,928
|
)
|
|
—
|
|
|
(443,317
|
)
|
||||||
Cash provided by (used for) financing
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Issuances of long-term debt
|
—
|
|
|
275,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
275,000
|
|
||||||
Payments of long-term debt
|
—
|
|
|
(256,831
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(256,831
|
)
|
||||||
Payments of financing costs
|
—
|
|
|
(8,613
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,613
|
)
|
||||||
Payments (to) from Boise Inc., net
|
115,196
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
115,196
|
|
||||||
Due to (from) affiliates
|
(115,196
|
)
|
|
(3,771
|
)
|
|
85,450
|
|
|
33,517
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
(2,355
|
)
|
|
—
|
|
|
892
|
|
|
—
|
|
|
(1,463
|
)
|
||||||
Cash provided by financing
|
—
|
|
|
3,430
|
|
|
85,450
|
|
|
34,409
|
|
|
—
|
|
|
123,289
|
|
||||||
Increase (decrease) in cash and cash equivalents
|
—
|
|
|
(83,878
|
)
|
|
9,731
|
|
|
4,310
|
|
|
—
|
|
|
(69,837
|
)
|
||||||
Balance at beginning of the period
|
—
|
|
|
166,410
|
|
|
6
|
|
|
417
|
|
|
—
|
|
|
166,833
|
|
||||||
Balance at end of the period
|
$
|
—
|
|
|
$
|
82,532
|
|
|
$
|
9,737
|
|
|
$
|
4,727
|
|
|
$
|
—
|
|
|
$
|
96,996
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash provided by (used for) operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income
|
$
|
63,577
|
|
|
$
|
63,577
|
|
|
$
|
218,131
|
|
|
$
|
18
|
|
|
$
|
(281,726
|
)
|
|
$
|
63,577
|
|
Items in net income not using
(providing) cash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in net income of affiliates
|
(63,577
|
)
|
|
(218,149
|
)
|
|
—
|
|
|
—
|
|
|
281,726
|
|
|
—
|
|
||||||
Depreciation, depletion, and amortization of deferred financing costs and other
|
—
|
|
|
11,023
|
|
|
126,472
|
|
|
—
|
|
|
—
|
|
|
137,495
|
|
||||||
Share-based compensation expense
|
—
|
|
|
3,733
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,733
|
|
||||||
Pension expense
|
—
|
|
|
9,241
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,241
|
|
||||||
Deferred income taxes
|
—
|
|
|
37,677
|
|
|
213
|
|
|
(8
|
)
|
|
—
|
|
|
37,882
|
|
||||||
Other
|
—
|
|
|
(805
|
)
|
|
900
|
|
|
—
|
|
|
—
|
|
|
95
|
|
||||||
Loss on extinguishment of debt
|
—
|
|
|
22,225
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22,225
|
|
||||||
Decrease (increase) in working capital
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Receivables
|
—
|
|
|
1,225
|
|
|
55,662
|
|
|
(12
|
)
|
|
380
|
|
|
57,255
|
|
||||||
Inventories
|
—
|
|
|
3
|
|
|
(17,123
|
)
|
|
—
|
|
|
—
|
|
|
(17,120
|
)
|
||||||
Prepaid expenses
|
—
|
|
|
4,437
|
|
|
253
|
|
|
—
|
|
|
—
|
|
|
4,690
|
|
||||||
Accounts payable and accrued liabilities
|
—
|
|
|
6,760
|
|
|
(13,208
|
)
|
|
138
|
|
|
(380
|
)
|
|
(6,690
|
)
|
||||||
Current and deferred income taxes
|
—
|
|
|
7,142
|
|
|
(1,398
|
)
|
|
—
|
|
|
—
|
|
|
5,744
|
|
||||||
Pension payments
|
—
|
|
|
(25,174
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,174
|
)
|
||||||
Other
|
—
|
|
|
(773
|
)
|
|
(2,399
|
)
|
|
—
|
|
|
—
|
|
|
(3,172
|
)
|
||||||
Cash provided by (used for) operations
|
—
|
|
|
(77,858
|
)
|
|
367,503
|
|
|
136
|
|
|
—
|
|
|
289,781
|
|
||||||
Cash provided by (used for) investment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Acquisitions of businesses and facilities
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Expenditures for property and equipment
|
—
|
|
|
(3,711
|
)
|
|
(107,908
|
)
|
|
—
|
|
|
—
|
|
|
(111,619
|
)
|
||||||
Purchases of short-term investments
|
—
|
|
|
(25,336
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(25,336
|
)
|
||||||
Maturities of short-term investments
|
—
|
|
|
24,744
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,744
|
|
||||||
Other
|
—
|
|
|
868
|
|
|
2,073
|
|
|
—
|
|
|
—
|
|
|
2,941
|
|
||||||
Cash used for investment
|
—
|
|
|
(3,435
|
)
|
|
(105,835
|
)
|
|
—
|
|
|
—
|
|
|
(109,270
|
)
|
||||||
Cash provided by (used for) financing
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Issuances of long-term debt
|
—
|
|
|
300,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
300,000
|
|
||||||
Payments of long-term debt
|
—
|
|
|
(334,096
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(334,096
|
)
|
||||||
Payments of financing costs
|
—
|
|
|
(12,003
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,003
|
)
|
||||||
Payments (to) from Boise Inc., net
|
(31,639
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31,639
|
)
|
||||||
Due to (from) affiliates
|
31,639
|
|
|
230,064
|
|
|
(261,695
|
)
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
(5,333
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,333
|
)
|
||||||
Cash provided by (used for) financing
|
—
|
|
|
178,632
|
|
|
(261,695
|
)
|
|
(8
|
)
|
|
—
|
|
|
(83,071
|
)
|
||||||
Increase (decrease) in cash and cash equivalents
|
—
|
|
|
97,339
|
|
|
(27
|
)
|
|
128
|
|
|
—
|
|
|
97,440
|
|
||||||
Balance at beginning of the period
|
—
|
|
|
69,071
|
|
|
33
|
|
|
289
|
|
|
—
|
|
|
69,393
|
|
||||||
Balance at end of the period
|
$
|
—
|
|
|
$
|
166,410
|
|
|
$
|
6
|
|
|
$
|
417
|
|
|
$
|
—
|
|
|
$
|
166,833
|
|
ITEM 9.
|
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
|
ITEM 9A.
|
CONTROLS AND PROCEDURES
|
ITEM 9B.
|
OTHER INFORMATION
|
ITEM 10.
|
DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE
|
ITEM 11.
|
EXECUTIVE COMPENSATION
|
ITEM 12.
|
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
|
ITEM 13.
|
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
|
ITEM 14.
|
PRINCIPAL ACCOUNTING FEES AND SERVICES
|
ITEM 15.
|
EXHIBITS, FINANCIAL STATEMENT SCHEDULES
|
(a)
|
The following documents are filed as part of this Form 10-K:
|
(1)
|
Consolidated Financial Statements
|
•
|
Boise Inc. Consolidated Statements of Income for the years ended
December 31, 2012
,
2011
, and
2010
.
|
•
|
Boise Inc. Consolidated Statements of Comprehensive Income for the years ended
December 31, 2012
,
2011
, and
2010
.
|
•
|
Boise Inc. Consolidated Balance Sheets as of
December 31, 2012
and
2011
.
|
•
|
Boise Inc. Consolidated Statements of Cash Flows for the years ended
December 31, 2012
,
2011
, and
2010
.
|
•
|
Boise Inc. Consolidated Statements of Stockholders' Equity for the years ended
December 31, 2012
,
2011
, and
2010
.
|
•
|
BZ Intermediate Holdings LLC Consolidated Statements of Income for the years ended
December 31, 2012
,
2011
, and
2010
.
|
•
|
BZ Intermediate Holdings LLC Consolidated Statements of Comprehensive Income for the years ended
December 31, 2012
,
2011
, and
2010
.
|
•
|
BZ Intermediate Holdings LLC Consolidated Balance Sheets as of
December 31, 2012
and
2011
.
|
•
|
BZ Intermediate Holdings LLC Consolidated Statements of Cash Flows for the years ended
December 31, 2012
,
2011
, and
2010
.
|
•
|
BZ Intermediate Holdings LLC Consolidated Statements of Capital for the years ended
December 31, 2012
,
2011
, and
2010
.
|
•
|
Notes to Consolidated Financial Statements.
|
•
|
Reports of Independent Registered Public Accounting Firm — KPMG LLP.
|
•
|
Management's Report on Internal Control Over Financial Reporting.
|
(2)
|
Financial Statement Schedules
|
•
|
All financial statement schedules have been omitted because they are inapplicable, not required, or shown in the consolidated financial statements and notes in "Part II, Item 8. Financial Statements and Supplementary Data" of this Form 10-K.
|
(3)
|
Exhibits
|
•
|
A list of the exhibits required to be filed or furnished as part of this Form 10-K is set forth in the Index to Exhibits and is incorporated by reference.
|
(b)
|
See Index to Exhibits.
|
BOISE INC.
|
|
BZ INTERMEDIATE HOLDINGS LLC
|
|
|
|
/s/ B
ERNADETTE
M. M
ADARIETA
|
|
/s/ B
ERNADETTE
M. M
ADARIETA
|
Bernadette M. Madarieta
|
|
Bernadette M. Madarieta
|
Vice President and Controller
|
|
Vice President and Controller
|
(As Duly Authorized Officer and Chief Accounting Officer)
|
|
(As Duly Authorized Officer and Chief Accounting Officer)
|
|
|
Signature
|
|
Capacity
|
|
|
|
|
|
(i)
|
|
Principal Executive Officer:
|
|
|
|
|
|
|
|
|
|
/s/ ALEXANDER TOELDTE
|
|
Chief Executive Officer
|
|
|
________________________________
|
|
|
|
|
Alexander Toeldte
|
|
|
|
|
|
|
|
(ii)
|
|
Principal Financial Officer:
|
|
|
|
|
|
|
|
|
|
/s/ SAMUEL K. COTTERELL
|
|
Senior Vice President and Chief Financial Officer
|
|
|
________________________________
|
|
|
|
|
Samuel K. Cotterell
|
|
|
|
|
|
|
|
(iii)
|
|
Principal Accounting Officer:
|
|
|
|
|
|
|
|
|
|
/s/ BERNADETTE M. MADARIETA
|
|
Vice President and Controller
|
|
|
________________________________
|
|
|
|
|
Bernadette M. Madarieta
|
|
|
|
|
|
|
|
(iv)
|
|
Directors:
|
|
|
|
|
|
|
|
|
|
/s/ CARL A. ALBERT
|
|
/s/ HEINRICH R. LENZ
|
|
|
________________________________
|
|
________________________________
|
|
|
Carl A. Albert
|
|
Heinrich R. Lenz
|
|
|
|
|
|
|
|
/s/ JONATHAN W. BERGER
|
|
/s/ ALEXANDER TOELDTE
|
|
|
________________________________
|
|
________________________________
|
|
|
Jonathan W. Berger
|
|
Alexander Toeldte
|
|
|
|
|
|
|
|
/s/ JACK GOLDMAN
|
|
/s/ JASON G. WEISS
|
|
|
________________________________
|
|
________________________________
|
|
|
Jack Goldman
|
|
Jason G. Weiss
|
|
|
|
|
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed or Furnished
Herewith
|
||||
|
|
Form
|
|
Exhibit
Number
|
|
Filing
Date
|
|
|||
|
|
|
|
|
|
|||||
2.1
|
|
Purchase and Sale Agreement dated September 7, 2007, between Boise Cascade, L.L.C., Boise Paper Holdings, L.L.C., Boise White Paper, L.L.C., Boise Packaging & Newsprint, L.L.C., Boise Cascade Transportation Holdings Corp., Aldabra 2 Acquisition Corp., and Aldabra Sub LLC
|
|
DEFM14A
|
|
|
|
1/23/2008
|
|
|
|
|
|
|
|
|
|||||
2.2
|
|
Amendment No. 1 to Purchase and Sale Agreement dated October 18, 2007, between Boise Cascade, L.L.C., Boise Paper Holdings, L.L.C., Boise White Paper, L.L.C., Boise Packaging & Newsprint, L.L.C., Boise Cascade Transportation Holdings Corp., Aldabra 2 Acquisition Corp., and Aldabra Sub LLC
|
|
DEFM14A
|
|
|
|
1/23/2008
|
|
|
|
|
|
|
|
|
|||||
2.3
|
|
Amendment No. 2 to Purchase and Sale Agreement dated February 22, 2008, between Boise Cascade, L.L.C., Boise Paper Holdings, L.L.C., Boise White Paper, L.L.C., Boise Packaging & Newsprint, L.L.C., Boise Cascade Transportation Holdings Corp., Aldabra 2 Acquisition Corp., and Aldabra Sub LLC
|
|
8-K
|
|
10.2
|
|
2/28/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.4
|
|
Stock Purchase Agreement dated February 21, 2011, among Boise Paper Holdings, L.L.C., the Sellers party thereto, Tricor (Tharco) Equity Holdings, Inc., as the Seller Representative, and Tharco Packaging, Inc.
|
|
10-Q
|
|
2
|
|
5/2/2011
|
|
|
|
|
|
|
|
|
|||||
2.5
|
|
Purchase Agreement dated October 2, 2011, between Boise Paper Holdings, L.L.C., and Pregis Corporation (For the purchase of Pregis Corporation's Hexacomb protective packaging business)
|
|
10-K
|
|
2.5
|
|
2/28/2012
|
|
|
|
|
|
|
|
|
|||||
3.1
|
|
Boise Inc. - Second Amended and Restated Certificate of Incorporation
|
|
8-K
|
|
3.1
|
|
2/28/2008
|
|
|
|
|
|
|
|
|
|||||
3.2
|
|
Boise Inc. - Bylaws, amended and restated effective as of July 11, 2008
|
|
8-K
|
|
3.1
|
|
7/14/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.3
|
|
BZ Intermediate Holdings LLC (formerly Aldabra Holding Sub LLC) - Certificate of Formation and amendment
|
|
S-4
(Reg. No.
333-166926)
|
|
3.3
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.4
|
|
BZ Intermediate Holdings LLC (formerly Aldabra Holding Sub LLC) - Limited Liability Company Agreement effective as of February 12, 2008, and amendment
|
|
S-4
(Reg. No.
333-166926)
|
|
3.4
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.5
|
|
Boise Paper Holdings, L.L.C. - Certificate of Formation and amendment
|
|
S-4
(Reg. No.
333-166926)
|
|
3.5
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.6
|
|
Boise Paper Holdings, L.L.C. - Limited Liability Company Agreement effective February 22, 2008, and amendment
|
|
S-4
(Reg. No.
333-166926)
|
|
3.6
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.7
|
|
Boise Finance Company - Certificate of Incorporation
|
|
S-4
(Reg. No.
333-166926)
|
|
3.7
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.8
|
|
Boise Finance Company - Bylaws
|
|
S-4
(Reg. No.
333-166926)
|
|
3.8
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.9
|
|
Boise Co-Issuer Company - Certificate of Incorporation
|
|
S-4
(Reg. No.
333-166926)
|
|
3.9
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.10
|
|
Boise Co-Issuer Company - Bylaws
|
|
S-4
(Reg. No.
333-166926)
|
|
3.10
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.11
|
|
Boise Packaging & Newsprint, L.L.C. - Certificate of Formation and amendment
|
|
S-4
(Reg. No.
333-166926)
|
|
3.11
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.12
|
|
Boise Packaging & Newsprint, L.L.C. - Operating Agreement effective as of September 20, 2004, and amendment
|
|
S-4
(Reg. No.
333-166926)
|
|
3.12
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.13
|
|
Boise White Paper, L.L.C. - Certificate of Formation and amendment
|
|
S-4
(Reg. No.
333-166926)
|
|
3.13
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.14
|
|
Boise White Paper, L.L.C. - Operating Agreement effective as of September 20, 2004, and amendment
|
|
S-4
(Reg. No.
333-166926)
|
|
3.14
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.15
|
|
Boise White Paper Sales Corp. (formerly Birch Creek Funding Corporation) - Certificate of Incorporation and amendment
|
|
S-4
(Reg. No.
333-166926)
|
|
3.15
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.16
|
|
Boise White Paper Sales Corp. - Bylaws
|
|
S-4
(Reg. No.
333-166926)
|
|
3.16
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.17
|
|
Boise White Paper Holdings Corp. (formerly Boise Cascade Transportation, Inc.) - Certificate of Incorporation and amendments
|
|
S-4
(Reg. No.
333-166926)
|
|
3.17
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.18
|
|
Boise White Paper Holdings Corp. - Bylaws
|
|
S-4
(Reg. No.
333-166926)
|
|
3.18
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.19
|
|
International Falls Power Company - Amended and Restated Certificate of Incorporation and amendment
|
|
S-4
(Reg. No.
333-166926)
|
|
3.19
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.20
|
|
International Falls Power Company - Amended and Restated Bylaws
|
|
S-4
(Reg. No.
333-166926)
|
|
3.20
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.21
|
|
Minnesota, Dakota & Western Railway Company - Amended and Restated Articles of Incorporation
|
|
S-4
(Reg. No.
333-166926)
|
|
3.21
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.22
|
|
Minnesota, Dakota & Western Railway Company - Amended and Restated Bylaws
|
|
S-4
(Reg. No.
333-166926)
|
|
3.22
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.23
|
|
Bemis Corporation - Certificate of Incorporation
|
|
S-4
(Reg. No.
333-166926)
|
|
3.23
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.24
|
|
Bemis Corporation - Bylaws
|
|
S-4
(Reg. No.
333-166926)
|
|
3.24
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.25
|
|
B C T, Inc. - Amended and Restated Certificate of Incorporation and amendment
|
|
S-4
(Reg. No.
333-166926)
|
|
3.25
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.26
|
|
B C T, Inc. - Amended and Restated Bylaws
|
|
S-4
(Reg. No.
333-166926)
|
|
3.26
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.27
|
|
Boise Cascade Transportation Holdings Corp. - Certificate of Incorporation
|
|
S-4
(Reg. No.
333-166926)
|
|
3.27
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.28
|
|
Boise Cascade Transportation Holdings Corp. - Bylaws
|
|
S-4
(Reg. No.
333-166926)
|
|
3.28
|
|
5/18/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.29
|
|
Tharco Packaging, Inc. - Fourth Amended and Restated Certificate of Incorporation
|
|
10-Q
|
|
3.1
|
|
5/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.30
|
|
Tharco Packaging, Inc. - Bylaws, amended as of March 1, 2011
|
|
10-Q
|
|
3.2
|
|
5/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.31
|
|
Tharco Containers, Inc. - Third Amended and Restated Articles of Incorporation
|
|
10-Q
|
|
3.3
|
|
5/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.32
|
|
Tharco Containers, Inc. - Amended and Restated Bylaws, amended as of March 1, 2011
|
|
10-Q
|
|
3.4
|
|
5/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.33
|
|
Tharco Containers Texas, Inc. - Second Amended and Restated Certificate of Incorporation
|
|
10-Q
|
|
3.5
|
|
5/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.34
|
|
Tharco Containers Texas, Inc. - Bylaws, amended as of March 1, 2011
|
|
10-Q
|
|
3.6
|
|
5/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.35
|
|
Design Packaging, Inc. - Third Amended and Restated Articles of Incorporation
|
|
10-Q
|
|
3.7
|
|
5/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.36
|
|
Design Packaging, Inc. - Bylaws
|
|
10-Q
|
|
3.8
|
|
5/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.37
|
|
Boise Packaging Holdings Corp. - Certificate of Incorporation
|
|
10-K
|
|
3.37
|
|
2/28/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.38
|
|
Boise Packaging Holdings Corp. - Bylaws
|
|
10-K
|
|
3.38
|
|
2/28/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.39
|
|
Hexacomb Corporation - Restated Articles of Incorporation
|
|
10-K
|
|
3.39
|
|
2/28/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.40
|
|
Hexacomb Corporation - Bylaws
|
|
10-K
|
|
3.40
|
|
2/28/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.1
|
|
Specimen Common Stock Certificate
|
|
S-1
POS AM
No. 1
|
|
4.2
|
|
6/13/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.2
|
|
Investor Rights Agreement dated February 22, 2008, between Aldabra 2 Acquisition Corp. (now Boise Inc.), Boise Cascade, L.L.C., Boise Cascade Holdings, L.L.C., certain directors and officers of Aldabra 2 Acquisition Corp., the Aldabra Shareholders, and each other Person who becomes a party to this Agreement after February 22, 2008
|
|
8-K
|
|
4.1
|
|
2/28/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.3
|
|
Indenture (9% Senior Notes due 2017) dated October 26, 2009, between Boise Paper Holdings, L.L.C., Boise Finance Company, the Guarantors set forth therein, and Wells Fargo Bank, National Association, as Trustee - Together with First Supplemental Indenture dated March 19, 2010, Second Supplemental Indenture dated March 8, 2011, Third Supplemental Indenture dated November 30, 2011, and Fourth Supplemental Indenture dated January 17, 2012
|
|
10-K
|
|
4.6
|
|
2/28/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.4
|
|
Form of 9% Senior Note due 2017
|
|
8-K
|
|
4.1
|
|
10/28/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.5
|
|
Indenture (8% Senior Notes due 2020) dated March 19, 2010, between Boise Paper Holdings, L.L.C., Boise Co-Issuer Company, the Guarantors set forth therein, and Wells Fargo Bank, National Association, as Trustee - Together with First Supplemental Indenture dated March 8, 2011, Second Supplemental Indenture dated November 30, 2011, and Third Supplemental Indenture dated January 17, 2012
|
|
10-K
|
|
4.8
|
|
2/28/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4.6
|
|
Form of 8% Senior Note due 2020
|
|
8-K
|
|
4.1
|
|
3/22/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.1 (a)
|
|
Paper Purchase Agreement dated June 25, 2011, between Boise White Paper, L.L.C., and OfficeMax Incorporated
|
|
10-Q/A
|
|
10
|
|
10/24/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
Credit Agreement dated as of November 4, 2011, among BZ Intermediate Holdings LLC, as guarantor, Boise Paper Holdings, L.L.C., as borrower, and a syndicate of lenders including JPMorgan Chase Bank, N.A., individually and as administrative agent
|
|
10-K
|
|
10.11
|
|
2/28/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.3
|
|
Guarantee and Collateral Agreement dated as of November 4, 2011, among BZ Intermediate Holdings LLC, Boise Paper Holdings, L.L.C., the subsidiaries of Boise Paper Holdings, L.L.C. party thereto, and JPMorgan Chase Bank. N.A., as administrative agent - Together with Supplement No. 1 dated November 30, 2011, and Supplement No. 2 dated January 17, 2012
|
|
10-K
|
|
10.12
|
|
2/28/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.4
|
|
Outsourcing Services Agreement dated February 22, 2008, between Boise Cascade, L.L.C. and Boise Paper Holdings, L.L.C.
|
|
10-K
|
|
10.20
|
|
3/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.5
|
|
Intellectual Property License Agreement dated February 22, 2008, between Boise Cascade, L.L.C. and Boise Paper Holdings, L.L.C.
|
|
8-K
|
|
10.18
|
|
2/28/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.6
|
|
Form of Indemnification Agreement between Boise Inc. and its Directors and Elected Officers
|
|
8-K
|
|
99.1
|
|
11/2/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.7 *
|
|
Severance Agreement dated December 9, 2010, between Boise Paper Holdings, L.L.C. and Alexander Toeldte
|
|
8-K
|
|
99.1
|
|
12/14/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.8 *
|
|
Form of 2010 Officer Severance Agreement
|
|
10-K
|
|
10.24
|
|
3/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.9 *
|
|
Boise Inc. Directors Deferred Compensation Plan effective April 4, 2008
|
|
10-Q
|
|
10
|
|
5/5/2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.10 *
|
|
Boise Paper Holdings, L.L.C. Deferred Compensation Plan effective February 22, 2008, amended as of October 27, 2009
|
|
10-K
|
|
10.26
|
|
2/25/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.11 *
|
|
Boise Paper Holdings, L.L.C. Supplemental Life Plan effective February 22, 2008
|
|
10-K
|
|
10.35
|
|
2/24/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.12 *
|
|
Boise Paper Holdings, L.L.C. Supplemental Pension Plan (SUPP) effective February 22, 2008
|
|
10-K
|
|
10.37
|
|
2/24/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.13 *
|
|
Boise Paper Holdings, L.L.C. Supplemental Early Retirement Plan (SERP) for Certain Elected Officers effective February 22, 2008
|
|
10-K
|
|
10.38
|
|
2/24/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.14 *
|
|
Boise Inc. Incentive and Performance Plan effective February 22, 2008, amended as of April 29, 2010
|
|
8-K
|
|
99.1
|
|
5/3/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.15 *
|
|
Form of 2009 Restricted Stock Award Agreement (Officers)
|
|
8-K
|
|
99.2
|
|
4/24/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.16 *
|
|
Form of 2009 Restricted Stock Unit Award Agreement (Officers)
|
|
8-K
|
|
99.3
|
|
4/24/2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.17 *
|
|
Form of 2010 Restricted Stock Award Agreement (Nonemployee Directors)
|
|
10-Q
|
|
10.3
|
|
5/4/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.18 *
|
|
Restricted Stock Unit Award Agreement dated November 1, 2010, with Robert A. Warren (Special award upon Mr. Warren's election as executive vice president and chief operating officer)
|
|
8-K
|
|
99.2
|
|
11/2/2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.19 *
|
|
Form of 2011 Restricted Stock Award Agreement (Nonemployee Directors)
|
|
10-Q
|
|
10.5
|
|
5/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.20 *
|
|
Restricted Stock Unit Award Agreement dated January 1, 2011, with Samuel K. Cotterell (Special award upon Mr. Cotterell's election as senior vice president and chief financial officer)
|
|
10-K
|
|
10.40
|
|
3/2/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.21 *
|
|
Form of 2011 Restricted Stock Award Agreement (2011 Supplemental Award to Officers)
|
|
8-K
|
|
99.1
|
|
3/1/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.22 *
|
|
Form of 2011 Restricted Stock Unit Award Agreement (2011 Supplemental Award to Officers)
|
|
8-K
|
|
99.2
|
|
3/1/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.23 *
|
|
Form of 2011 Restricted Stock Award Agreement (2011 Regular Award to Officers)
|
|
8-K
|
|
99.1
|
|
3/18/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.24 *
|
|
Form of 2011 Restricted Stock Unit Award Agreement (2011 Regular Award to Officers)
|
|
8-K
|
|
99.2
|
|
3/18/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.25 *
|
|
Form of 2011 Nonqualified Stock Option Award Agreement (2011 Regular Award to Officers)
|
|
8-K
|
|
99.3
|
|
3/18/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.26 *
|
|
Form of 2011 Performance Unit Award Agreement (2011 Regular Award to Officers)
|
|
8-K
|
|
99.4
|
|
3/18/2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.27 *
|
|
Form of 2012 Restricted Stock Award Agreement (Nonemployee Directors)
|
|
10-K
|
|
10.39
|
|
2/28/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.28 *
|
|
Form of 2012 Restricted Stock Award Agreement (Officers)
|
|
8-K
|
|
99.1
|
|
2/21/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.29 *
|
|
Form of 2012 Restricted Stock Unit Award Agreement (Officers)
|
|
8-K
|
|
99.2
|
|
2/21/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.30 *
|
|
Form of 2012 Nonqualified Stock Option Award Agreement (Officers)
|
|
8-K
|
|
99.3
|
|
2/21/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.31 *
|
|
Form of 2012 Performance Unit Award Agreement (Officers)
|
|
8-K
|
|
99.4
|
|
2/21/2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.32 *
|
|
Restricted Stock Unit Award Agreement dated December 17, 2012, with Judith M. Lassa (Special award upon Ms. Lassa's election as executive vice president and chief operating officer)
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.33 *
|
|
Form of 2013 Restricted Stock Award Agreement (Nonemployee Directors)
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.34 *
|
|
Form of 2013 Restricted Stock Unit Award Agreement (Officers)
|
|
8-K
|
|
99.1
|
|
2/25/2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.35 *
|
|
Form of 2013 RONOA Performance Unit Award Agreement (Officers)
|
|
8-K
|
|
99.2
|
|
2/25/2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10.36 *
|
|
Form of 2013 Total Stockholder Return Performance Unit Award Agreement (Officers)
|
|
8-K
|
|
99.3
|
|
2/25/2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11
|
|
Presented in Footnote 4, Net Income Per Common Share, to Consolidated Financial Statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
|
|
BZ Intermediate Holdings LLC Ratio of Earnings to Fixed Charges
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
13
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14 (b)
|
|
Boise Inc. Code of Ethics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16
|
|
Inapplicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21
|
|
List of Subsidiaries
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
22
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
23
|
|
Consent of Independent Registered Public Accounting Firm for Boise Inc. and BZ Intermediate Holdings LLC - KPMG LLP
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
24
|
|
Inapplicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
CEO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Boise Inc. and BZ Intermediate Holdings LLC
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
CFO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 for Boise Inc. and BZ Intermediate Holdings LLC
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
32
|
|
Section 906 Certifications of Chief Executive Officer and Chief Financial Officer of Boise Inc. and BZ Intermediate Holdings LLC
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
33
|
|
Inapplicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34
|
|
Inapplicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
Inapplicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
99
|
|
Inapplicable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
100
|
|
None
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101
|
|
Financial Statements in XBRL Format
|
|
|
|
|
|
|
|
X
|
*
|
Indicates exhibits that constitute management contracts or compensatory plans or arrangements.
|
(a)
|
Confidential information in this exhibit has been omitted and filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request under Rule 406 of the Securities Act of 1933, as amended.
|
(b)
|
Our Code of Ethics can be found on our website at www.boiseinc.com by selecting
About Boise Inc., Corporate Governance
, and then
Code of Ethics
.
|