x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
For the quarterly period ended June 30, 2013
|
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
|
|
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 — FINANCIAL INFORMATION
|
|
|
|
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Item 1.
|
||
|
||
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||
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||
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||
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||
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||
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4.
Income Taxes
|
|
|
||
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6.
Debt
|
|
|
||
|
||
|
||
|
||
|
11.
Inventories
|
|
|
||
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13.
Leases
|
|
|
||
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||
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||
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||
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||
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||
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Item 2.
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||
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||
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||
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||
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||
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||
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||
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||
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||
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||
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||
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Item 3.
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||
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Item 4.
|
||
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PART II — OTHER INFORMATION
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
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Item 2.
|
||
|
|
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Item 3.
|
||
|
|
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Item 4.
|
||
|
||
Item 5.
|
||
|
|
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Item 6.
|
||
|
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Sales
|
|
|
|
|
|
|
|
||||||||
Trade
|
$
|
604,821
|
|
|
$
|
618,585
|
|
|
$
|
1,196,142
|
|
|
$
|
1,252,113
|
|
Related party
|
16,843
|
|
|
19,255
|
|
|
32,540
|
|
|
30,573
|
|
||||
|
621,664
|
|
|
637,840
|
|
|
1,228,682
|
|
|
1,282,686
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
495,689
|
|
|
507,343
|
|
|
991,958
|
|
|
1,009,642
|
|
||||
Fiber costs from related party
|
5,319
|
|
|
4,466
|
|
|
11,465
|
|
|
9,412
|
|
||||
Depreciation, amortization, and depletion
|
43,891
|
|
|
37,303
|
|
|
87,319
|
|
|
74,859
|
|
||||
Selling and distribution expenses
|
33,764
|
|
|
30,568
|
|
|
62,613
|
|
|
61,210
|
|
||||
General and administrative expenses
|
19,693
|
|
|
20,035
|
|
|
38,616
|
|
|
40,043
|
|
||||
Restructuring costs
|
9,011
|
|
|
—
|
|
|
9,474
|
|
|
—
|
|
||||
Other (income) expense, net
|
1,930
|
|
|
381
|
|
|
1,798
|
|
|
81
|
|
||||
|
609,297
|
|
|
600,096
|
|
|
1,203,243
|
|
|
1,195,247
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income from operations
|
12,367
|
|
|
37,744
|
|
|
25,439
|
|
|
87,439
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Foreign exchange gain (loss)
|
(415
|
)
|
|
102
|
|
|
(756
|
)
|
|
259
|
|
||||
Interest expense
|
(15,456
|
)
|
|
(15,433
|
)
|
|
(30,875
|
)
|
|
(30,798
|
)
|
||||
Interest income
|
7
|
|
|
54
|
|
|
34
|
|
|
98
|
|
||||
|
(15,864
|
)
|
|
(15,277
|
)
|
|
(31,597
|
)
|
|
(30,441
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Income (loss) before income taxes
|
(3,497
|
)
|
|
22,467
|
|
|
(6,158
|
)
|
|
56,998
|
|
||||
Income tax (provision) benefit
|
1,289
|
|
|
(8,805
|
)
|
|
2,725
|
|
|
(21,998
|
)
|
||||
Net income (loss)
|
$
|
(2,208
|
)
|
|
$
|
13,662
|
|
|
$
|
(3,433
|
)
|
|
$
|
35,000
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
100,531
|
|
|
100,116
|
|
|
100,387
|
|
|
99,584
|
|
||||
Diluted
|
100,531
|
|
|
101,008
|
|
|
100,387
|
|
|
101,182
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.02
|
)
|
|
$
|
0.14
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.35
|
|
Diluted
|
$
|
(0.02
|
)
|
|
$
|
0.14
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.35
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net income (loss)
|
$
|
(2,208
|
)
|
|
$
|
13,662
|
|
|
$
|
(3,433
|
)
|
|
$
|
35,000
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment, net of tax of $69, $0, $29, and $0, respectively
|
(195
|
)
|
|
(2,307
|
)
|
|
(423
|
)
|
|
(1,452
|
)
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
||||||||
Change in fair value, net of tax of ($671), $913, $367, and ($475), respectively
|
(1,069
|
)
|
|
1,459
|
|
|
587
|
|
|
(756
|
)
|
||||
(Gain) loss included in net income, net of tax of $64, $380, $2, and $891, respectively
|
101
|
|
|
604
|
|
|
3
|
|
|
1,421
|
|
||||
Amortization of actuarial loss and prior service cost for defined benefit pension plans, net of tax of $845, $993, $1,670, and $2,012, respectively
|
1,349
|
|
|
1,585
|
|
|
2,665
|
|
|
3,210
|
|
||||
Other, net of tax of ($14), ($2), ($29), and ($6), respectively
|
(24
|
)
|
|
(5
|
)
|
|
(48
|
)
|
|
(10
|
)
|
||||
|
162
|
|
|
1,336
|
|
|
2,784
|
|
|
2,413
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss)
|
$
|
(2,046
|
)
|
|
$
|
14,998
|
|
|
$
|
(649
|
)
|
|
$
|
37,413
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||
ASSETS
|
|
|
|
||||
|
|
|
|
||||
Current
|
|
|
|
||||
Cash and cash equivalents
|
$
|
61,086
|
|
|
$
|
49,707
|
|
Receivables
|
|
|
|
||||
Trade, less allowances of $1,349 and $1,382
|
254,348
|
|
|
240,459
|
|
||
Other
|
9,861
|
|
|
8,267
|
|
||
Inventories
|
288,707
|
|
|
294,484
|
|
||
Deferred income taxes
|
10,068
|
|
|
17,955
|
|
||
Prepaid and other
|
14,139
|
|
|
8,828
|
|
||
|
638,209
|
|
|
619,700
|
|
||
|
|
|
|
||||
Property
|
|
|
|
||||
Property and equipment, net
|
1,212,663
|
|
|
1,223,001
|
|
||
Fiber farms
|
25,113
|
|
|
24,311
|
|
||
|
1,237,776
|
|
|
1,247,312
|
|
||
|
|
|
|
||||
Deferred financing costs
|
24,380
|
|
|
26,677
|
|
||
Goodwill
|
160,132
|
|
|
160,130
|
|
||
Intangible assets, net
|
142,018
|
|
|
147,564
|
|
||
Other assets
|
6,629
|
|
|
7,029
|
|
||
Total assets
|
$
|
2,209,144
|
|
|
$
|
2,208,412
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
||||
|
|
|
|
||||
Current
|
|
|
|
||||
Current portion of long-term debt
|
$
|
15,000
|
|
|
$
|
10,000
|
|
Accounts payable
|
203,202
|
|
|
185,078
|
|
||
Accrued liabilities
|
|
|
|
||||
Compensation and benefits
|
65,386
|
|
|
70,950
|
|
||
Interest payable
|
10,529
|
|
|
10,516
|
|
||
Other
|
25,158
|
|
|
20,528
|
|
||
|
319,275
|
|
|
297,072
|
|
||
|
|
|
|
||||
Debt
|
|
|
|
||||
Long-term debt, less current portion
|
760,000
|
|
|
770,000
|
|
||
|
|
|
|
||||
Other
|
|
|
|
||||
Deferred income taxes
|
189,918
|
|
|
198,370
|
|
||
Compensation and benefits
|
116,153
|
|
|
121,682
|
|
||
Other long-term liabilities
|
73,990
|
|
|
73,102
|
|
||
|
380,061
|
|
|
393,154
|
|
||
|
|
|
|
||||
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; 100,884 and 100,503 shares issued and outstanding
|
12
|
|
|
12
|
|
||
Treasury stock, 21,151 shares held
|
(121,423
|
)
|
|
(121,423
|
)
|
||
Additional paid-in capital
|
871,065
|
|
|
868,840
|
|
||
Accumulated other comprehensive income (loss)
|
(98,520
|
)
|
|
(101,304
|
)
|
||
Retained earnings
|
98,674
|
|
|
102,061
|
|
||
Total stockholders' equity
|
749,808
|
|
|
748,186
|
|
||
|
|
|
|
||||
Total liabilities and stockholders' equity
|
$
|
2,209,144
|
|
|
$
|
2,208,412
|
|
|
Six Months Ended June 30
|
||||||
|
2013
|
|
2012
|
||||
Cash provided by (used for) operations
|
|
|
|
||||
Net income (loss)
|
$
|
(3,433
|
)
|
|
$
|
35,000
|
|
Items in net income (loss) not using (providing) cash
|
|
|
|
||||
Depreciation, depletion, and amortization of deferred financing costs and other
|
89,793
|
|
|
77,190
|
|
||
Share-based compensation expense
|
3,076
|
|
|
2,729
|
|
||
Pension expense
|
3,020
|
|
|
5,474
|
|
||
Deferred income taxes
|
(2,624
|
)
|
|
12,610
|
|
||
Restructuring costs
|
9,992
|
|
|
—
|
|
||
Other
|
1,400
|
|
|
(43
|
)
|
||
Decrease (increase) in working capital
|
|
|
|
||||
Receivables
|
(15,731
|
)
|
|
(12,050
|
)
|
||
Inventories
|
2,566
|
|
|
(20,224
|
)
|
||
Prepaid expenses
|
(2,127
|
)
|
|
(4,869
|
)
|
||
Accounts payable and accrued liabilities
|
1,040
|
|
|
(14,061
|
)
|
||
Current and deferred income taxes
|
(689
|
)
|
|
7,452
|
|
||
Pension payments
|
(5,091
|
)
|
|
(18,191
|
)
|
||
Other
|
404
|
|
|
2,110
|
|
||
Cash provided by operations
|
81,596
|
|
|
73,127
|
|
||
Cash provided by (used for) investment
|
|
|
|
||||
Expenditures for property and equipment
|
(64,595
|
)
|
|
(52,457
|
)
|
||
Other
|
690
|
|
|
586
|
|
||
Cash used for investment
|
(63,905
|
)
|
|
(51,871
|
)
|
||
Cash provided by (used for) financing
|
|
|
|
||||
Payments of long-term debt
|
(5,000
|
)
|
|
(5,000
|
)
|
||
Payments of special dividend
|
—
|
|
|
(47,483
|
)
|
||
Other
|
(1,312
|
)
|
|
(6,267
|
)
|
||
Cash used for financing
|
(6,312
|
)
|
|
(58,750
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
11,379
|
|
|
(37,494
|
)
|
||
Balance at beginning of the period
|
49,707
|
|
|
96,996
|
|
||
Balance at end of the period
|
$
|
61,086
|
|
|
$
|
59,502
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Sales
|
|
|
|
|
|
|
|
||||||||
Trade
|
$
|
604,821
|
|
|
$
|
618,585
|
|
|
$
|
1,196,142
|
|
|
$
|
1,252,113
|
|
Related party
|
16,843
|
|
|
19,255
|
|
|
32,540
|
|
|
30,573
|
|
||||
|
621,664
|
|
|
637,840
|
|
|
1,228,682
|
|
|
1,282,686
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
495,689
|
|
|
507,343
|
|
|
991,958
|
|
|
1,009,642
|
|
||||
Fiber costs from related party
|
5,319
|
|
|
4,466
|
|
|
11,465
|
|
|
9,412
|
|
||||
Depreciation, amortization, and depletion
|
43,891
|
|
|
37,303
|
|
|
87,319
|
|
|
74,859
|
|
||||
Selling and distribution expenses
|
33,764
|
|
|
30,568
|
|
|
62,613
|
|
|
61,210
|
|
||||
General and administrative expenses
|
19,693
|
|
|
20,035
|
|
|
38,616
|
|
|
40,043
|
|
||||
Restructuring costs
|
9,011
|
|
|
—
|
|
|
9,474
|
|
|
—
|
|
||||
Other (income) expense, net
|
1,930
|
|
|
381
|
|
|
1,798
|
|
|
81
|
|
||||
|
609,297
|
|
|
600,096
|
|
|
1,203,243
|
|
|
1,195,247
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||
Income from operations
|
12,367
|
|
|
37,744
|
|
|
25,439
|
|
|
87,439
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||
Foreign exchange gain (loss)
|
(415
|
)
|
|
102
|
|
|
(756
|
)
|
|
259
|
|
||||
Interest expense
|
(15,456
|
)
|
|
(15,433
|
)
|
|
(30,875
|
)
|
|
(30,798
|
)
|
||||
Interest income
|
7
|
|
|
54
|
|
|
34
|
|
|
98
|
|
||||
|
(15,864
|
)
|
|
(15,277
|
)
|
|
(31,597
|
)
|
|
(30,441
|
)
|
||||
|
|
|
|
|
|
|
|
|
|
||||||
Income (loss) before income taxes
|
(3,497
|
)
|
|
22,467
|
|
|
(6,158
|
)
|
|
56,998
|
|
||||
Income tax (provision) benefit
|
1,289
|
|
|
(8,805
|
)
|
|
2,725
|
|
|
(21,998
|
)
|
||||
Net income (loss)
|
$
|
(2,208
|
)
|
|
$
|
13,662
|
|
|
$
|
(3,433
|
)
|
|
$
|
35,000
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net income (loss)
|
$
|
(2,208
|
)
|
|
$
|
13,662
|
|
|
$
|
(3,433
|
)
|
|
$
|
35,000
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment, net of tax of $69, $0, $29, and $0, respectively
|
(195
|
)
|
|
(2,307
|
)
|
|
(423
|
)
|
|
(1,452
|
)
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
||||||||
Change in fair value, net of tax of ($671), $913, $367, and ($475), respectively
|
(1,069
|
)
|
|
1,459
|
|
|
587
|
|
|
(756
|
)
|
||||
(Gain) loss included in net income, net of tax of $64, $380, $2, and $891, respectively
|
101
|
|
|
604
|
|
|
3
|
|
|
1,421
|
|
||||
Amortization of actuarial loss and prior service cost for defined benefit pension plans, net of tax of $845, $993, $1,670, and $2,012, respectively
|
1,349
|
|
|
1,585
|
|
|
2,665
|
|
|
3,210
|
|
||||
Other, net of tax of ($14), ($2), ($29), and ($6), respectively
|
(24
|
)
|
|
(5
|
)
|
|
(48
|
)
|
|
(10
|
)
|
||||
|
162
|
|
|
1,336
|
|
|
2,784
|
|
|
2,413
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Comprehensive income (loss)
|
$
|
(2,046
|
)
|
|
$
|
14,998
|
|
|
$
|
(649
|
)
|
|
$
|
37,413
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||
ASSETS
|
|
|
|
||||
|
|
|
|
||||
Current
|
|
|
|
||||
Cash and cash equivalents
|
$
|
61,086
|
|
|
$
|
49,707
|
|
Receivables
|
|
|
|
||||
Trade, less allowances of
$1,349
and $1,382
|
254,348
|
|
|
240,459
|
|
||
Other
|
9,861
|
|
|
8,267
|
|
||
Inventories
|
288,707
|
|
|
294,484
|
|
||
Deferred income taxes
|
11,997
|
|
|
17,955
|
|
||
Prepaid and other
|
14,139
|
|
|
8,828
|
|
||
|
640,138
|
|
|
619,700
|
|
||
|
|
|
|
||||
Property
|
|
|
|
||||
Property and equipment, net
|
1,212,663
|
|
|
1,223,001
|
|
||
Fiber farms
|
25,113
|
|
|
24,311
|
|
||
|
1,237,776
|
|
|
1,247,312
|
|
||
|
|
|
|
||||
Deferred financing costs
|
24,380
|
|
|
26,677
|
|
||
Goodwill
|
160,132
|
|
|
160,130
|
|
||
Intangible assets, net
|
142,018
|
|
|
147,564
|
|
||
Other assets
|
6,629
|
|
|
7,029
|
|
||
Total assets
|
$
|
2,211,073
|
|
|
$
|
2,208,412
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||
LIABILITIES AND CAPITAL
|
|
|
|
||||
|
|
|
|
||||
Current
|
|
|
|
||||
Current portion of long-term debt
|
$
|
15,000
|
|
|
$
|
10,000
|
|
Accounts payable
|
203,202
|
|
|
185,078
|
|
||
Accrued liabilities
|
|
|
|
||||
Compensation and benefits
|
65,386
|
|
|
70,950
|
|
||
Interest payable
|
10,529
|
|
|
10,516
|
|
||
Other
|
25,158
|
|
|
20,528
|
|
||
|
319,275
|
|
|
297,072
|
|
||
|
|
|
|
||||
Debt
|
|
|
|
||||
Long-term debt, less current portion
|
760,000
|
|
|
770,000
|
|
||
|
|
|
|
||||
Other
|
|
|
|
||||
Deferred income taxes
|
183,300
|
|
|
189,823
|
|
||
Compensation and benefits
|
116,153
|
|
|
121,682
|
|
||
Other long-term liabilities
|
74,040
|
|
|
73,152
|
|
||
|
373,493
|
|
|
384,657
|
|
||
|
|
|
|
||||
Commitments and contingent liabilities
|
|
|
|
||||
|
|
|
|
||||
Capital
|
|
|
|
||||
Business unit equity
|
856,825
|
|
|
857,987
|
|
||
Accumulated other comprehensive income (loss)
|
(98,520
|
)
|
|
(101,304
|
)
|
||
|
758,305
|
|
|
756,683
|
|
||
|
|
|
|
||||
Total liabilities and capital
|
$
|
2,211,073
|
|
|
$
|
2,208,412
|
|
|
Six Months Ended
June 30
|
||||||
|
2013
|
|
2012
|
||||
Cash provided by (used for) operations
|
|
|
|
||||
Net income (loss)
|
$
|
(3,433
|
)
|
|
$
|
35,000
|
|
Items in net income (loss) not using (providing) cash
|
|
|
|
||||
Depreciation, depletion, and amortization of deferred financing costs and other
|
89,793
|
|
|
77,190
|
|
||
Share-based compensation expense
|
3,076
|
|
|
2,729
|
|
||
Pension expense
|
3,020
|
|
|
5,474
|
|
||
Deferred income taxes
|
(2,624
|
)
|
|
12,610
|
|
||
Restructuring costs
|
9,992
|
|
|
—
|
|
||
Other
|
1,400
|
|
|
(43
|
)
|
||
Decrease (increase) in working capital
|
|
|
|
||||
Receivables
|
(15,731
|
)
|
|
(12,050
|
)
|
||
Inventories
|
2,566
|
|
|
(20,224
|
)
|
||
Prepaid expenses
|
(2,127
|
)
|
|
(4,869
|
)
|
||
Accounts payable and accrued liabilities
|
1,040
|
|
|
(14,061
|
)
|
||
Current and deferred income taxes
|
(689
|
)
|
|
7,452
|
|
||
Pension payments
|
(5,091
|
)
|
|
(18,191
|
)
|
||
Other
|
404
|
|
|
2,110
|
|
||
Cash provided by operations
|
81,596
|
|
|
73,127
|
|
||
Cash provided by (used for) investment
|
|
|
|
||||
Expenditures for property and equipment
|
(64,595
|
)
|
|
(52,457
|
)
|
||
Other
|
690
|
|
|
586
|
|
||
Cash used for investment
|
(63,905
|
)
|
|
(51,871
|
)
|
||
Cash provided by (used for) financing
|
|
|
|
||||
Payments of long-term debt
|
(5,000
|
)
|
|
(5,000
|
)
|
||
Payments (to) from Boise Inc., net
|
(1,100
|
)
|
|
(52,440
|
)
|
||
Other
|
(212
|
)
|
|
(1,310
|
)
|
||
Cash used for financing
|
(6,312
|
)
|
|
(58,750
|
)
|
||
Increase (decrease) in cash and cash equivalents
|
11,379
|
|
|
(37,494
|
)
|
||
Balance at beginning of the period
|
49,707
|
|
|
96,996
|
|
||
Balance at end of the period
|
$
|
61,086
|
|
|
$
|
59,502
|
|
•
|
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).
|
|
Noncash
|
|
Cash (a)
|
|
Total Costs
|
||||||
Employee-related and other costs
|
$
|
—
|
|
|
$
|
7,023
|
|
|
$
|
7,023
|
|
Inventory write-down
|
3,960
|
|
|
—
|
|
|
3,960
|
|
|||
Asset write-down
|
2,016
|
|
|
—
|
|
|
2,016
|
|
|||
Pension curtailment loss
|
271
|
|
|
—
|
|
|
271
|
|
|||
|
$
|
6,247
|
|
|
$
|
7,023
|
|
|
$
|
13,270
|
|
(a)
|
These costs were recorded in "Accrued liabilities, Compensation and benefits" on our Consolidated Balance Sheet. We expect to pay most of these costs in the second half of 2013 and the remainder in the first half of 2014. In addition to the restructuring costs, above, we expect to incur approximately
$0.9 million
of additional employee-related and other costs in 2013 and 2014 that will be recognized as a period expense when incurred.
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net income (loss)
|
$
|
(2,208
|
)
|
|
$
|
13,662
|
|
|
$
|
(3,433
|
)
|
|
$
|
35,000
|
|
Weighted average number of common shares for basic net income (loss) per common share
|
100,531
|
|
|
100,116
|
|
|
100,387
|
|
|
99,584
|
|
||||
Incremental effect of dilutive common stock equivalents (a):
|
|
|
|
|
|
|
|
||||||||
Restricted stock and restricted stock units
|
—
|
|
|
680
|
|
|
—
|
|
|
1,362
|
|
||||
RONOA performance awards
|
—
|
|
|
211
|
|
|
—
|
|
|
235
|
|
||||
Total Stockholder Return (TSR) market-condition awards
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Stock options
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
||||
Weighted average number of common shares for diluted net income (loss) per common share
|
100,531
|
|
|
101,008
|
|
|
100,387
|
|
|
101,182
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income (loss) per common share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
(0.02
|
)
|
|
$
|
0.14
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.35
|
|
Diluted
|
$
|
(0.02
|
)
|
|
$
|
0.14
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.35
|
|
(a)
|
During the
three and six months ended
June 30, 2013
, we excluded a weighted average
0.8 million
and
1.0 million
potentially dilutive shares, respectively, from the diluted net income (loss) per share calculation as they would have been antidilutive or were out-of-the-money. During the
three and six months ended
June 30, 2012, we excluded
0.8 million
and
0.3 million
potentially dilutive shares, respectively, as they would have been antidilutive or were out-of-the-money.
|
|
June 30, 2013
|
|
December 31, 2012
|
||||||||||
|
Amount
|
|
Interest Rate
|
|
Amount
|
|
Interest Rate
|
||||||
Revolving credit facility, due 2016
|
$
|
—
|
|
|
—
|
%
|
|
$
|
5,000
|
|
|
2.21
|
%
|
Tranche A term loan, due 2016
|
175,000
|
|
|
2.20
|
|
|
175,000
|
|
|
2.22
|
|
||
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
|
775,000
|
|
|
7.08
|
|
|
780,000
|
|
|
7.05
|
|
||
Current portion of long-term debt
|
(15,000
|
)
|
|
2.20
|
|
|
(10,000
|
)
|
|
2.22
|
|
||
Long-term debt, less current portion
|
$
|
760,000
|
|
|
7.17
|
%
|
|
$
|
770,000
|
|
|
7.11
|
%
|
•
|
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 (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%
.
|
|
Remaining
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2017
|
|
Thereafter
|
||||||||||||
Required debt principal repayments
|
$
|
5,000
|
|
|
$
|
20,000
|
|
|
$
|
30,000
|
|
|
$
|
120,000
|
|
|
$
|
300,000
|
|
|
$
|
300,000
|
|
|
July 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 |
|
April 2016
Through October 2016 |
|||||||
Approximate percent hedged
|
79
|
%
|
|
58
|
%
|
|
50
|
%
|
|
43
|
%
|
|
37
|
%
|
|
15
|
%
|
|
21
|
%
|
|
(Gain) Loss Recognized in Accumulated Other Comprehensive Income
|
|
Loss Reclassified From Accumulated Other Comprehensive Income Into Earnings
|
||||||||||||||||||||||||||||
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||||||||||||||
|
2013 (a)
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||||||||||
Natural gas contracts
|
$
|
1,740
|
|
|
$
|
(2,372
|
)
|
|
$
|
(954
|
)
|
|
$
|
1,231
|
|
|
$
|
165
|
|
|
$
|
984
|
|
|
$
|
5
|
|
|
$
|
2,312
|
|
(a)
|
Based on
June 30, 2013
, pricing, the estimated income, net of tax, to be recognized in earnings during the next 12 months is
$0.6 million
.
|
|
Gross Amounts of Recognized Liabilities
|
|
Gross Amounts Offset in the Consolidated Balance Sheets
|
|
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets
|
||||||
|
June 30, 2013
|
||||||||||
Instruments in a net liability position, by counterparty (a)
|
|
|
|
|
|
||||||
Cash flow hedges
|
$
|
(1,510
|
)
|
|
$
|
103
|
|
|
$
|
(1,407
|
)
|
Economic hedges
|
(2,457
|
)
|
|
352
|
|
|
(2,105
|
)
|
|||
Total
|
$
|
(3,967
|
)
|
|
$
|
455
|
|
|
$
|
(3,512
|
)
|
|
|
|
|
|
|
||||||
|
December 31, 2012
|
||||||||||
Instruments in a net liability position, by counterparty (a)
|
|
|
|
|
|
||||||
Cash flow hedges
|
$
|
(2,568
|
)
|
|
$
|
203
|
|
|
$
|
(2,365
|
)
|
Economic hedges
|
(2,582
|
)
|
|
385
|
|
|
(2,197
|
)
|
|||
Total
|
$
|
(5,150
|
)
|
|
$
|
588
|
|
|
$
|
(4,562
|
)
|
(a)
|
At
June 30, 2013
,
$1.9 million
was recorded in "Accrued liabilities, Other" and $
1.6 million
was recorded in "Other long-term liabilities."
At
December 31, 2012
, amounts were
$4.1 million
and
$0.5 million
, respectively.
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
2013
|
|
2012
|
|
2013
|
|
2012
|
|||||||||
Service cost
|
$
|
558
|
|
|
$
|
705
|
|
|
$
|
1,131
|
|
|
$
|
1,440
|
|
Interest cost
|
5,957
|
|
|
6,157
|
|
|
11,936
|
|
|
12,325
|
|
||||
Expected return on plan assets
|
(7,308
|
)
|
|
(6,803
|
)
|
|
(14,653
|
)
|
|
(13,579
|
)
|
||||
Amortization of actuarial loss
|
2,194
|
|
|
2,576
|
|
|
4,335
|
|
|
5,217
|
|
||||
Amortization of prior service costs and other
|
—
|
|
|
2
|
|
|
—
|
|
|
5
|
|
||||
Curtailment loss
|
271
|
|
|
66
|
|
|
271
|
|
|
66
|
|
||||
Net periodic benefit cost
|
$
|
1,672
|
|
|
$
|
2,703
|
|
|
$
|
3,020
|
|
|
$
|
5,474
|
|
Expected volatility
|
43.79%
|
-
|
44.62%
|
||
Stock price on grant date
|
$8.63
|
-
|
$8.87
|
||
Risk-free interest rate
|
0.37
|
%
|
-
|
0.39
|
%
|
Expected term (years)
|
2.5
|
-
|
2.8
|
||
Expected dividend yield
|
—%
|
-
|
—%
|
|
Restricted Stock
|
|
RONOA Performance Awards
|
|
TSR Market-Condition Awards
|
|||||||||||||||
|
Nonvested Shares
|
|
Weighted Average Grant-Date Fair Value
|
|
Nonvested Shares
|
|
Weighted Average Grant-Date Fair Value
|
|
Nonvested Shares
|
|
Weighted Average Grant-Date Fair Value
|
|||||||||
Outstanding at December 31, 2012 (a)
|
636
|
|
|
$
|
6.66
|
|
|
489
|
|
|
$
|
7.90
|
|
|
—
|
|
|
$
|
—
|
|
Granted
|
422
|
|
|
8.61
|
|
|
264
|
|
|
8.69
|
|
|
236
|
|
|
8.54
|
|
|||
Vested
|
(231
|
)
|
|
8.52
|
|
|
(93
|
)
|
|
8.53
|
|
|
—
|
|
|
—
|
|
|||
Forfeited
|
(8
|
)
|
|
8.48
|
|
|
(4
|
)
|
|
8.50
|
|
|
—
|
|
|
—
|
|
|||
Outstanding at June 30, 2013 (a)
|
819
|
|
|
$
|
7.12
|
|
|
656
|
|
|
$
|
8.13
|
|
|
236
|
|
|
$
|
8.54
|
|
|
Options
|
|
Weighted Average Exercise Price
|
|
Weighted Average Remaining Life (in years)
|
|
Aggregate Intrinsic Value
|
|||||
Outstanding at December 31, 2012
|
841
|
|
|
$
|
8.34
|
|
|
|
|
|
||
Exercised
|
—
|
|
|
—
|
|
|
|
|
|
|||
Forfeited
|
—
|
|
|
—
|
|
|
|
|
|
|||
Outstanding at June 30, 2013
|
841
|
|
|
$
|
8.34
|
|
|
8.3
|
|
$
|
169
|
|
Exercisable at June 30, 2013
|
335
|
|
|
$
|
8.37
|
|
|
8.2
|
|
$
|
57
|
|
Vested and expected to vest at June 30, 2013
|
825
|
|
|
$
|
8.34
|
|
|
8.3
|
|
$
|
165
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Restricted stock
|
$
|
828
|
|
|
$
|
771
|
|
|
$
|
1,277
|
|
|
$
|
1,604
|
|
RONOA performance awards
|
500
|
|
|
462
|
|
|
972
|
|
|
705
|
|
||||
TSR market-condition awards
|
153
|
|
|
—
|
|
|
180
|
|
|
—
|
|
||||
Stock options
|
271
|
|
|
262
|
|
|
647
|
|
|
420
|
|
||||
Total share-based compensation expense
|
$
|
1,752
|
|
|
$
|
1,495
|
|
|
$
|
3,076
|
|
|
$
|
2,729
|
|
|
Unrecognized Compensation Expense
|
|
Remaining Weighted Average Recognition Period (in years)
|
||
Restricted stock
|
$
|
4,306
|
|
|
2.0
|
RONOA performance awards
|
3,140
|
|
|
1.8
|
|
TSR market-condition awards
|
1,685
|
|
|
2.7
|
|
Stock options
|
1,394
|
|
|
1.5
|
|
Total unrecognized share-based compensation expense
|
$
|
10,525
|
|
|
2.0
|
|
|
Changes in Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||
|
|
Three Months Ended June 30, 2013
|
||||||||||||||||||
|
|
Foreign Currency Translation Adjustments
|
|
Effective Portion of Cash Flow Hedges
|
|
Pension Benefits
|
|
Other
|
|
Total
|
||||||||||
Beginning balance
|
|
$
|
(530
|
)
|
|
$
|
328
|
|
|
$
|
(98,792
|
)
|
|
$
|
312
|
|
|
$
|
(98,682
|
)
|
Other comprehensive income (loss) before reclassification, net of tax
|
|
(195
|
)
|
|
(1,069
|
)
|
|
—
|
|
|
—
|
|
|
(1,264
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income, net of tax
|
|
—
|
|
|
101
|
|
|
1,349
|
|
|
(24
|
)
|
|
1,426
|
|
|||||
Ending balance
|
|
$
|
(725
|
)
|
|
$
|
(640
|
)
|
|
$
|
(97,443
|
)
|
|
$
|
288
|
|
|
$
|
(98,520
|
)
|
|
|
Changes in Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||
|
|
Three Months Ended June 30, 2012
|
||||||||||||||||||
|
|
Foreign Currency Translation Adjustments
|
|
Effective Portion of Cash Flow Hedges
|
|
Pension Benefits
|
|
Other
|
|
Total
|
||||||||||
Beginning balance
|
|
$
|
503
|
|
|
$
|
(5,100
|
)
|
|
$
|
(116,516
|
)
|
|
$
|
228
|
|
|
$
|
(120,885
|
)
|
Other comprehensive income (loss) before reclassification, net of tax
|
|
(2,307
|
)
|
|
1,459
|
|
|
—
|
|
|
—
|
|
|
(848
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income, net of tax
|
|
—
|
|
|
604
|
|
|
1,585
|
|
|
(5
|
)
|
|
2,184
|
|
|||||
Ending balance
|
|
$
|
(1,804
|
)
|
|
$
|
(3,037
|
)
|
|
$
|
(114,931
|
)
|
|
$
|
223
|
|
|
$
|
(119,549
|
)
|
|
|
Changes in Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||
|
|
Six Months Ended June 30, 2013
|
||||||||||||||||||
|
|
Foreign Currency Translation Adjustments
|
|
Effective Portion of Cash Flow Hedges
|
|
Pension Benefits
|
|
Other
|
|
Total
|
||||||||||
Beginning balance
|
|
$
|
(302
|
)
|
|
$
|
(1,230
|
)
|
|
$
|
(100,108
|
)
|
|
$
|
336
|
|
|
$
|
(101,304
|
)
|
Other comprehensive income (loss) before reclassification, net of tax
|
|
(423
|
)
|
|
587
|
|
|
—
|
|
|
—
|
|
|
164
|
|
|||||
Amounts reclassified from accumulated other comprehensive income, net of tax
|
|
—
|
|
|
3
|
|
|
2,665
|
|
|
(48
|
)
|
|
2,620
|
|
|||||
Ending balance
|
|
$
|
(725
|
)
|
|
$
|
(640
|
)
|
|
$
|
(97,443
|
)
|
|
$
|
288
|
|
|
$
|
(98,520
|
)
|
|
|
Changes in Accumulated Other Comprehensive Income (Loss)
|
||||||||||||||||||
|
|
Six Months Ended June 30, 2012
|
||||||||||||||||||
|
|
Foreign Currency Translation Adjustments
|
|
Effective Portion of Cash Flow Hedges
|
|
Pension Benefits
|
|
Other
|
|
Total
|
||||||||||
Beginning balance
|
|
$
|
(352
|
)
|
|
$
|
(3,702
|
)
|
|
$
|
(118,141
|
)
|
|
$
|
233
|
|
|
$
|
(121,962
|
)
|
Other comprehensive income (loss) before reclassification, net of tax
|
|
(1,452
|
)
|
|
(756
|
)
|
|
—
|
|
|
—
|
|
|
(2,208
|
)
|
|||||
Amounts reclassified from accumulated other comprehensive income, net of tax
|
|
—
|
|
|
1,421
|
|
|
3,210
|
|
|
(10
|
)
|
|
4,621
|
|
|||||
Ending balance
|
|
$
|
(1,804
|
)
|
|
$
|
(3,037
|
)
|
|
$
|
(114,931
|
)
|
|
$
|
223
|
|
|
$
|
(119,549
|
)
|
|
|
Reclassifications Out of Accumulated Other Comprehensive Income
|
||||||||||||||
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
(Gains) losses on cash flow hedges
|
|
|
|
|
|
|
|
|
||||||||
Natural gas contracts (a)
|
|
$
|
165
|
|
|
$
|
984
|
|
|
$
|
5
|
|
|
$
|
2,312
|
|
Tax benefit
|
|
(64
|
)
|
|
(380
|
)
|
|
(2
|
)
|
|
(891
|
)
|
||||
Net of tax
|
|
$
|
101
|
|
|
$
|
604
|
|
|
$
|
3
|
|
|
$
|
1,421
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pension benefits
|
|
|
|
|
|
|
|
|
||||||||
Amortization of prior service cost
|
|
$
|
—
|
|
|
$
|
2
|
|
|
$
|
—
|
|
|
$
|
5
|
|
Amortization of actuarial loss
|
|
2,194
|
|
|
2,576
|
|
|
4,335
|
|
|
5,217
|
|
||||
Total before tax (b)
|
|
2,194
|
|
|
2,578
|
|
|
4,335
|
|
|
5,222
|
|
||||
Tax benefit
|
|
(845
|
)
|
|
(993
|
)
|
|
(1,670
|
)
|
|
(2,012
|
)
|
||||
Net of tax
|
|
$
|
1,349
|
|
|
$
|
1,585
|
|
|
$
|
2,665
|
|
|
$
|
3,210
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other
|
|
$
|
(38
|
)
|
|
$
|
(7
|
)
|
|
$
|
(77
|
)
|
|
$
|
(16
|
)
|
Tax expense
|
|
14
|
|
|
2
|
|
|
29
|
|
|
6
|
|
||||
Net of tax
|
|
$
|
(24
|
)
|
|
$
|
(5
|
)
|
|
$
|
(48
|
)
|
|
$
|
(10
|
)
|
(a)
|
Amounts are recorded in "Materials, labor and other operating expenses (excluding depreciation)" in our Consolidated Statements of Operations.
|
(b)
|
Amounts are included in the computation of net periodic pension cost. For additional information, see Note
8
, Retirement and Benefit Plans.
|
|
June 30, 2013
|
|
December 31, 2012
|
||||
Finished goods
|
$
|
152,829
|
|
|
$
|
150,496
|
|
Work in process
|
43,096
|
|
|
41,575
|
|
||
Fiber
|
27,600
|
|
|
35,840
|
|
||
Other raw materials and supplies
|
65,182
|
|
|
66,573
|
|
||
|
$
|
288,707
|
|
|
$
|
294,484
|
|
|
June 30, 2013
|
|
December 31, 2012
|
||||
Land
|
$
|
28,842
|
|
|
$
|
28,899
|
|
Buildings and improvements
|
266,628
|
|
|
260,607
|
|
||
Machinery and equipment
|
1,515,468
|
|
|
1,479,212
|
|
||
Construction in progress
|
68,430
|
|
|
46,538
|
|
||
|
1,879,368
|
|
|
1,815,256
|
|
||
Less accumulated depreciation
|
(666,705
|
)
|
|
(592,255
|
)
|
||
|
$
|
1,212,663
|
|
|
$
|
1,223,001
|
|
|
|
Sales
|
|
Income (Loss) Before Income Taxes
|
|
Depreciation,
Amortization, and Depletion (c)
|
|
EBITDA
(d)
|
||||||||||||||||||||
Three Months Ended
June 30, 2013
|
|
Trade
|
|
Related
Party
|
|
Inter-
segment
|
|
Total
|
|
|
|
|||||||||||||||||
Packaging (a)
|
|
$
|
283.0
|
|
|
$
|
16.8
|
|
|
$
|
0.8
|
|
|
$
|
300.6
|
|
|
$
|
31.3
|
|
|
$
|
16.8
|
|
|
$
|
48.1
|
|
Paper (a)
|
|
313.8
|
|
|
—
|
|
|
21.0
|
|
|
334.8
|
|
|
(9.9
|
)
|
|
25.9
|
|
|
15.9
|
|
|||||||
Corporate and Other (b)
|
|
8.1
|
|
|
—
|
|
|
7.7
|
|
|
15.7
|
|
|
(9.4
|
)
|
|
1.2
|
|
|
(8.1
|
)
|
|||||||
Intersegment eliminations
|
|
—
|
|
|
—
|
|
|
(29.5
|
)
|
|
(29.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
$
|
604.8
|
|
|
$
|
16.8
|
|
|
$
|
—
|
|
|
$
|
621.7
|
|
|
12.0
|
|
|
$
|
43.9
|
|
|
$
|
55.8
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
(15.5
|
)
|
|
|
|
|
|||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
$
|
(3.5
|
)
|
|
|
|
|
|
|
Sales
|
|
Income (Loss) Before Income Taxes
|
|
Depreciation,
Amortization, and Depletion
|
|
EBITDA
(d)
|
||||||||||||||||||||
Three Months Ended
June 30, 2012
|
|
Trade
|
|
Related
Party
|
|
Inter-
segment
|
|
Total
|
|
|
|
|||||||||||||||||
Packaging
|
|
$
|
264.9
|
|
|
$
|
19.3
|
|
|
$
|
0.6
|
|
|
$
|
284.8
|
|
|
$
|
24.8
|
|
|
$
|
15.1
|
|
|
$
|
40.0
|
|
Paper
|
|
345.5
|
|
|
—
|
|
|
17.7
|
|
|
363.3
|
|
|
19.6
|
|
|
21.3
|
|
|
40.9
|
|
|||||||
Corporate and Other
|
|
8.2
|
|
|
—
|
|
|
9.0
|
|
|
17.2
|
|
|
(6.6
|
)
|
|
0.8
|
|
|
(5.7
|
)
|
|||||||
Intersegment eliminations
|
|
—
|
|
|
—
|
|
|
(27.4
|
)
|
|
(27.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
$
|
618.6
|
|
|
$
|
19.3
|
|
|
$
|
—
|
|
|
$
|
637.8
|
|
|
37.8
|
|
|
$
|
37.3
|
|
|
$
|
75.1
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
(15.4
|
)
|
|
|
|
|
|||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
|
0.1
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
$
|
22.5
|
|
|
|
|
|
|
|
Sales
|
|
Income (Loss) Before Income Taxes
|
|
Depreciation,
Amortization, and Depletion (c)
|
|
EBITDA
(d)
|
||||||||||||||||||||
Six Months Ended
June 30, 2013
|
|
Trade
|
|
Related
Party
|
|
Inter-
segment
|
|
Total
|
|
|
|
|||||||||||||||||
Packaging (a)
|
|
$
|
553.6
|
|
|
$
|
32.5
|
|
|
$
|
1.4
|
|
|
$
|
587.6
|
|
|
$
|
32.2
|
|
|
$
|
33.1
|
|
|
$
|
65.3
|
|
Paper (a)
|
|
626.7
|
|
|
—
|
|
|
40.9
|
|
|
667.6
|
|
|
9.7
|
|
|
51.8
|
|
|
61.5
|
|
|||||||
Corporate and Other (b)
|
|
15.8
|
|
|
—
|
|
|
16.2
|
|
|
32.0
|
|
|
(17.2
|
)
|
|
2.4
|
|
|
(14.8
|
)
|
|||||||
Intersegment eliminations
|
|
—
|
|
|
—
|
|
|
(58.5
|
)
|
|
(58.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
$
|
1,196.1
|
|
|
$
|
32.5
|
|
|
$
|
—
|
|
|
$
|
1,228.7
|
|
|
24.7
|
|
|
$
|
87.3
|
|
|
$
|
112.0
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
(30.9
|
)
|
|
|
|
|
|||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
$
|
(6.2
|
)
|
|
|
|
|
|
|
Sales
|
|
Income (Loss) Before Income Taxes
|
|
Depreciation,
Amortization, and Depletion
|
|
EBITDA
(d)
|
||||||||||||||||||||
Six Months Ended
June 30, 2012
|
|
Trade
|
|
Related
Party
|
|
Inter-
segment
|
|
Total
|
|
|
|
|||||||||||||||||
Packaging
|
|
$
|
525.1
|
|
|
$
|
30.6
|
|
|
$
|
1.4
|
|
|
$
|
557.1
|
|
|
$
|
47.3
|
|
|
$
|
30.6
|
|
|
$
|
77.9
|
|
Paper
|
|
711.1
|
|
|
—
|
|
|
34.6
|
|
|
745.7
|
|
|
53.5
|
|
|
42.5
|
|
|
96.0
|
|
|||||||
Corporate and Other
|
|
15.9
|
|
|
—
|
|
|
19.5
|
|
|
35.3
|
|
|
(13.1
|
)
|
|
1.7
|
|
|
(11.4
|
)
|
|||||||
Intersegment eliminations
|
|
—
|
|
|
—
|
|
|
(55.4
|
)
|
|
(55.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
$
|
1,252.1
|
|
|
$
|
30.6
|
|
|
$
|
—
|
|
|
$
|
1,282.7
|
|
|
87.7
|
|
|
$
|
74.9
|
|
|
$
|
162.6
|
|
|
Interest expense
|
|
|
|
|
|
|
|
|
|
(30.8
|
)
|
|
|
|
|
|||||||||||||
Interest income
|
|
|
|
|
|
|
|
|
|
0.1
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
$
|
57.0
|
|
|
|
|
|
(a)
|
During the three months ended June 30, 2013, we recorded
$13.3 million
of pretax restructuring costs, of which
$12.3 million
was recorded in our Paper segment, and related primarily to our plan to shut down two paper machines and an off-machine coater at our mill in International Falls, Minnesota, in early fourth quarter 2013. We recorded
$1.0 million
of costs in our Packaging segment related to restructuring activities due to the conversion of a machine at our mill in DeRidder, Louisiana.
|
(b)
|
During the three months ended June 30, 2013, we recorded $2.0 million of transaction-related costs in our Corporate and Other segment. Transaction-related costs include expenses associated with transactions, whether consummated or not. We explore strategic transactions to the extent we believe they may improve our competitive position or enhance shareholder value.
|
(c)
|
During the
three and six months ended
June 30, 2013
, we recognized
$5.5 million
and
$10.8 million
, respectively, of incremental depreciation expense related to shortening the useful lives of some of our assets, primarily at International Falls, Minnesota. We recognized
$3.8 million
and
$7.6 million
of incremental depreciation expense in our Paper segment during the three and six months ended June 30, 2013, respectively, and
$1.7 million
and
$3.2 million
of incremental depreciation expense, respectively, in our Packaging segment.
|
(d)
|
EBITDA represents income (loss) before interest (interest expense and interest income), 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. 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 (loss) 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 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.
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net income (loss)
|
$
|
(2.2
|
)
|
|
$
|
13.7
|
|
|
$
|
(3.4
|
)
|
|
$
|
35.0
|
|
Interest expense
|
15.5
|
|
|
15.4
|
|
|
30.9
|
|
|
30.8
|
|
||||
Interest income
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
||||
Income tax provision (benefit)
|
(1.3
|
)
|
|
8.8
|
|
|
(2.7
|
)
|
|
22.0
|
|
||||
Depreciation, amortization, and depletion (c)
|
43.9
|
|
|
37.3
|
|
|
87.3
|
|
|
74.9
|
|
||||
EBITDA
|
$
|
55.8
|
|
|
$
|
75.1
|
|
|
$
|
112.0
|
|
|
$
|
162.6
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
$
|
—
|
|
|
$
|
3,998
|
|
|
$
|
588,133
|
|
|
$
|
12,690
|
|
|
$
|
—
|
|
|
$
|
604,821
|
|
Intercompany
|
—
|
|
|
—
|
|
|
2,319
|
|
|
27,417
|
|
|
(29,736
|
)
|
|
—
|
|
||||||
Related party
|
—
|
|
|
—
|
|
|
—
|
|
|
16,843
|
|
|
—
|
|
|
16,843
|
|
||||||
|
—
|
|
|
3,998
|
|
|
590,452
|
|
|
56,950
|
|
|
(29,736
|
)
|
|
621,664
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
—
|
|
|
3,751
|
|
|
472,833
|
|
|
48,841
|
|
|
(29,736
|
)
|
|
495,689
|
|
||||||
Fiber costs from related party
|
—
|
|
|
—
|
|
|
—
|
|
|
5,319
|
|
|
—
|
|
|
5,319
|
|
||||||
Depreciation, amortization, and depletion
|
—
|
|
|
1,030
|
|
|
42,176
|
|
|
685
|
|
|
—
|
|
|
43,891
|
|
||||||
Selling and distribution expenses
|
—
|
|
|
—
|
|
|
33,179
|
|
|
585
|
|
|
—
|
|
|
33,764
|
|
||||||
General and administrative expenses
|
—
|
|
|
6,780
|
|
|
11,620
|
|
|
1,293
|
|
|
—
|
|
|
19,693
|
|
||||||
Restructuring costs
|
—
|
|
|
—
|
|
|
9,011
|
|
|
—
|
|
|
—
|
|
|
9,011
|
|
||||||
Other (income) expense, net
|
—
|
|
|
2,046
|
|
|
(246
|
)
|
|
130
|
|
|
—
|
|
|
1,930
|
|
||||||
|
—
|
|
|
13,607
|
|
|
568,573
|
|
|
56,853
|
|
|
(29,736
|
)
|
|
609,297
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from operations
|
—
|
|
|
(9,609
|
)
|
|
21,879
|
|
|
97
|
|
|
—
|
|
|
12,367
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange loss
|
—
|
|
|
(270
|
)
|
|
(32
|
)
|
|
(113
|
)
|
|
—
|
|
|
(415
|
)
|
||||||
Interest expense
|
—
|
|
|
(15,435
|
)
|
|
—
|
|
|
(21
|
)
|
|
—
|
|
|
(15,456
|
)
|
||||||
Interest expense—intercompany
|
—
|
|
|
(56
|
)
|
|
—
|
|
|
(20
|
)
|
|
76
|
|
|
—
|
|
||||||
Interest income
|
—
|
|
|
1
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||||
Interest income—intercompany
|
—
|
|
|
13
|
|
|
63
|
|
|
—
|
|
|
(76
|
)
|
|
—
|
|
||||||
|
—
|
|
|
(15,747
|
)
|
|
37
|
|
|
(154
|
)
|
|
—
|
|
|
(15,864
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in net income (loss) of affiliates
|
—
|
|
|
(25,356
|
)
|
|
21,916
|
|
|
(57
|
)
|
|
—
|
|
|
(3,497
|
)
|
||||||
Income tax (provision) benefit
|
—
|
|
|
1,313
|
|
|
(5
|
)
|
|
(19
|
)
|
|
—
|
|
|
1,289
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in net income (loss) of affiliates
|
—
|
|
|
(24,043
|
)
|
|
21,911
|
|
|
(76
|
)
|
|
—
|
|
|
(2,208
|
)
|
||||||
Equity in net income (loss) of affiliates
|
(2,208
|
)
|
|
21,835
|
|
|
—
|
|
|
—
|
|
|
(19,627
|
)
|
|
—
|
|
||||||
Net income (loss)
|
$
|
(2,208
|
)
|
|
$
|
(2,208
|
)
|
|
$
|
21,911
|
|
|
$
|
(76
|
)
|
|
$
|
(19,627
|
)
|
|
$
|
(2,208
|
)
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
$
|
—
|
|
|
$
|
3,629
|
|
|
$
|
602,193
|
|
|
$
|
12,763
|
|
|
$
|
—
|
|
|
$
|
618,585
|
|
Intercompany
|
—
|
|
|
—
|
|
|
749
|
|
|
26,293
|
|
|
(27,042
|
)
|
|
—
|
|
||||||
Related party
|
—
|
|
|
—
|
|
|
—
|
|
|
19,255
|
|
|
—
|
|
|
19,255
|
|
||||||
|
—
|
|
|
3,629
|
|
|
602,942
|
|
|
58,311
|
|
|
(27,042
|
)
|
|
637,840
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
—
|
|
|
3,544
|
|
|
479,689
|
|
|
51,152
|
|
|
(27,042
|
)
|
|
507,343
|
|
||||||
Fiber costs from related party
|
—
|
|
|
—
|
|
|
—
|
|
|
4,466
|
|
|
—
|
|
|
4,466
|
|
||||||
Depreciation, amortization, and depletion
|
—
|
|
|
659
|
|
|
35,976
|
|
|
668
|
|
|
—
|
|
|
37,303
|
|
||||||
Selling and distribution expenses
|
—
|
|
|
—
|
|
|
30,627
|
|
|
(59
|
)
|
|
—
|
|
|
30,568
|
|
||||||
General and administrative expenses
|
—
|
|
|
6,955
|
|
|
11,423
|
|
|
1,657
|
|
|
—
|
|
|
20,035
|
|
||||||
Other (income) expense, net
|
—
|
|
|
98
|
|
|
349
|
|
|
(66
|
)
|
|
—
|
|
|
381
|
|
||||||
|
—
|
|
|
11,256
|
|
|
558,064
|
|
|
57,818
|
|
|
(27,042
|
)
|
|
600,096
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from operations
|
—
|
|
|
(7,627
|
)
|
|
44,878
|
|
|
493
|
|
|
—
|
|
|
37,744
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange gain (loss)
|
—
|
|
|
(186
|
)
|
|
33
|
|
|
255
|
|
|
—
|
|
|
102
|
|
||||||
Interest expense
|
—
|
|
|
(15,440
|
)
|
|
—
|
|
|
7
|
|
|
—
|
|
|
(15,433
|
)
|
||||||
Interest expense—intercompany
|
—
|
|
|
(48
|
)
|
|
—
|
|
|
(14
|
)
|
|
62
|
|
|
—
|
|
||||||
Interest income
|
—
|
|
|
14
|
|
|
40
|
|
|
—
|
|
|
—
|
|
|
54
|
|
||||||
Interest income—intercompany
|
—
|
|
|
14
|
|
|
48
|
|
|
—
|
|
|
(62
|
)
|
|
—
|
|
||||||
|
—
|
|
|
(15,646
|
)
|
|
121
|
|
|
248
|
|
|
—
|
|
|
(15,277
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in net income (loss) of affiliates
|
—
|
|
|
(23,273
|
)
|
|
44,999
|
|
|
741
|
|
|
—
|
|
|
22,467
|
|
||||||
Income tax provision
|
—
|
|
|
(8,488
|
)
|
|
9
|
|
|
(326
|
)
|
|
—
|
|
|
(8,805
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in net income (loss) of affiliates
|
—
|
|
|
(31,761
|
)
|
|
45,008
|
|
|
415
|
|
|
—
|
|
|
13,662
|
|
||||||
Equity in net income of affiliates
|
13,662
|
|
|
45,423
|
|
|
—
|
|
|
—
|
|
|
(59,085
|
)
|
|
—
|
|
||||||
Net income
|
$
|
13,662
|
|
|
$
|
13,662
|
|
|
$
|
45,008
|
|
|
$
|
415
|
|
|
$
|
(59,085
|
)
|
|
$
|
13,662
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
$
|
—
|
|
|
$
|
7,864
|
|
|
$
|
1,162,844
|
|
|
$
|
25,434
|
|
|
$
|
—
|
|
|
$
|
1,196,142
|
|
Intercompany
|
—
|
|
|
—
|
|
|
4,712
|
|
|
55,407
|
|
|
(60,119
|
)
|
|
—
|
|
||||||
Related party
|
—
|
|
|
—
|
|
|
—
|
|
|
32,540
|
|
|
—
|
|
|
32,540
|
|
||||||
|
—
|
|
|
7,864
|
|
|
1,167,556
|
|
|
113,381
|
|
|
(60,119
|
)
|
|
1,228,682
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
—
|
|
|
7,487
|
|
|
948,153
|
|
|
96,437
|
|
|
(60,119
|
)
|
|
991,958
|
|
||||||
Fiber costs from related party
|
—
|
|
|
—
|
|
|
—
|
|
|
11,465
|
|
|
—
|
|
|
11,465
|
|
||||||
Depreciation, amortization, and depletion
|
—
|
|
|
1,980
|
|
|
83,993
|
|
|
1,346
|
|
|
—
|
|
|
87,319
|
|
||||||
Selling and distribution expenses
|
—
|
|
|
—
|
|
|
61,775
|
|
|
838
|
|
|
—
|
|
|
62,613
|
|
||||||
General and administrative expenses
|
—
|
|
|
13,994
|
|
|
22,044
|
|
|
2,578
|
|
|
—
|
|
|
38,616
|
|
||||||
Restructuring costs
|
—
|
|
|
—
|
|
|
9,474
|
|
|
—
|
|
|
—
|
|
|
9,474
|
|
||||||
Other (income) expense, net
|
—
|
|
|
2,076
|
|
|
(318
|
)
|
|
40
|
|
|
—
|
|
|
1,798
|
|
||||||
|
—
|
|
|
25,537
|
|
|
1,125,121
|
|
|
112,704
|
|
|
(60,119
|
)
|
|
1,203,243
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from operations
|
—
|
|
|
(17,673
|
)
|
|
42,435
|
|
|
677
|
|
|
—
|
|
|
25,439
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange loss
|
—
|
|
|
(434
|
)
|
|
(48
|
)
|
|
(274
|
)
|
|
—
|
|
|
(756
|
)
|
||||||
Interest expense
|
—
|
|
|
(30,862
|
)
|
|
—
|
|
|
(13
|
)
|
|
—
|
|
|
(30,875
|
)
|
||||||
Interest expense—intercompany
|
—
|
|
|
(103
|
)
|
|
—
|
|
|
(39
|
)
|
|
142
|
|
|
—
|
|
||||||
Interest income
|
—
|
|
|
1
|
|
|
13
|
|
|
20
|
|
|
—
|
|
|
34
|
|
||||||
Interest income—intercompany
|
—
|
|
|
27
|
|
|
115
|
|
|
—
|
|
|
(142
|
)
|
|
—
|
|
||||||
|
—
|
|
|
(31,371
|
)
|
|
80
|
|
|
(306
|
)
|
|
—
|
|
|
(31,597
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in net income (loss) of affiliates
|
—
|
|
|
(49,044
|
)
|
|
42,515
|
|
|
371
|
|
|
—
|
|
|
(6,158
|
)
|
||||||
Income tax (provision) benefit
|
—
|
|
|
2,947
|
|
|
(33
|
)
|
|
(189
|
)
|
|
—
|
|
|
2,725
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in net income (loss) of affiliates
|
—
|
|
|
(46,097
|
)
|
|
42,482
|
|
|
182
|
|
|
—
|
|
|
(3,433
|
)
|
||||||
Equity in net income (loss) of affiliates
|
(3,433
|
)
|
|
42,664
|
|
|
—
|
|
|
—
|
|
|
(39,231
|
)
|
|
—
|
|
||||||
Net income (loss)
|
$
|
(3,433
|
)
|
|
$
|
(3,433
|
)
|
|
$
|
42,482
|
|
|
$
|
182
|
|
|
$
|
(39,231
|
)
|
|
$
|
(3,433
|
)
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
$
|
—
|
|
|
$
|
7,300
|
|
|
$
|
1,220,608
|
|
|
$
|
24,205
|
|
|
$
|
—
|
|
|
$
|
1,252,113
|
|
Intercompany
|
—
|
|
|
—
|
|
|
976
|
|
|
52,034
|
|
|
(53,010
|
)
|
|
—
|
|
||||||
Related party
|
—
|
|
|
—
|
|
|
—
|
|
|
30,573
|
|
|
—
|
|
|
30,573
|
|
||||||
|
—
|
|
|
7,300
|
|
|
1,221,584
|
|
|
106,812
|
|
|
(53,010
|
)
|
|
1,282,686
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Costs and expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
—
|
|
|
7,057
|
|
|
963,719
|
|
|
91,876
|
|
|
(53,010
|
)
|
|
1,009,642
|
|
||||||
Fiber costs from related party
|
—
|
|
|
—
|
|
|
—
|
|
|
9,412
|
|
|
—
|
|
|
9,412
|
|
||||||
Depreciation, amortization, and depletion
|
—
|
|
|
1,322
|
|
|
72,159
|
|
|
1,378
|
|
|
—
|
|
|
74,859
|
|
||||||
Selling and distribution expenses
|
—
|
|
|
—
|
|
|
60,847
|
|
|
363
|
|
|
—
|
|
|
61,210
|
|
||||||
General and administrative expenses
|
—
|
|
|
14,241
|
|
|
22,777
|
|
|
3,025
|
|
|
—
|
|
|
40,043
|
|
||||||
Other (income) expense, net
|
—
|
|
|
152
|
|
|
189
|
|
|
(260
|
)
|
|
—
|
|
|
81
|
|
||||||
|
—
|
|
|
22,772
|
|
|
1,119,691
|
|
|
105,794
|
|
|
(53,010
|
)
|
|
1,195,247
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) from operations
|
—
|
|
|
(15,472
|
)
|
|
101,893
|
|
|
1,018
|
|
|
—
|
|
|
87,439
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign exchange gain (loss)
|
—
|
|
|
3
|
|
|
76
|
|
|
180
|
|
|
—
|
|
|
259
|
|
||||||
Interest expense
|
—
|
|
|
(30,798
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(30,798
|
)
|
||||||
Interest expense—intercompany
|
—
|
|
|
(95
|
)
|
|
—
|
|
|
(28
|
)
|
|
123
|
|
|
—
|
|
||||||
Interest income
|
—
|
|
|
48
|
|
|
50
|
|
|
—
|
|
|
—
|
|
|
98
|
|
||||||
Interest income—intercompany
|
—
|
|
|
28
|
|
|
95
|
|
|
—
|
|
|
(123
|
)
|
|
—
|
|
||||||
|
—
|
|
|
(30,814
|
)
|
|
221
|
|
|
152
|
|
|
—
|
|
|
(30,441
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before income taxes and equity in net income (loss) of affiliates
|
—
|
|
|
(46,286
|
)
|
|
102,114
|
|
|
1,170
|
|
|
—
|
|
|
56,998
|
|
||||||
Income tax provision
|
—
|
|
|
(21,629
|
)
|
|
(23
|
)
|
|
(346
|
)
|
|
—
|
|
|
(21,998
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (loss) before equity in net income (loss) of affiliates
|
—
|
|
|
(67,915
|
)
|
|
102,091
|
|
|
824
|
|
|
—
|
|
|
35,000
|
|
||||||
Equity in net income of affiliates
|
35,000
|
|
|
102,915
|
|
|
—
|
|
|
—
|
|
|
(137,915
|
)
|
|
—
|
|
||||||
Net income
|
$
|
35,000
|
|
|
$
|
35,000
|
|
|
$
|
102,091
|
|
|
$
|
824
|
|
|
$
|
(137,915
|
)
|
|
$
|
35,000
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income (loss)
|
$
|
(2,208
|
)
|
|
$
|
(2,208
|
)
|
|
$
|
21,911
|
|
|
$
|
(76
|
)
|
|
$
|
(19,627
|
)
|
|
$
|
(2,208
|
)
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
(195
|
)
|
|
—
|
|
|
(195
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in fair value
|
—
|
|
|
(1,069
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,069
|
)
|
||||||
Loss included in net income
|
—
|
|
|
101
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
101
|
|
||||||
Amortization of actuarial loss and prior service cost for defined benefit pension plans
|
—
|
|
|
1,349
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,349
|
|
||||||
Other
|
—
|
|
|
(24
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(24
|
)
|
||||||
Equity in other comprehensive income of affiliates
|
162
|
|
|
(195
|
)
|
|
—
|
|
|
—
|
|
|
33
|
|
|
—
|
|
||||||
|
162
|
|
|
162
|
|
|
—
|
|
|
(195
|
)
|
|
33
|
|
|
162
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
(2,046
|
)
|
|
$
|
(2,046
|
)
|
|
$
|
21,911
|
|
|
$
|
(271
|
)
|
|
$
|
(19,594
|
)
|
|
$
|
(2,046
|
)
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income
|
$
|
13,662
|
|
|
$
|
13,662
|
|
|
$
|
45,008
|
|
|
$
|
415
|
|
|
$
|
(59,085
|
)
|
|
$
|
13,662
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,307
|
)
|
|
—
|
|
|
(2,307
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in fair value
|
—
|
|
|
1,459
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,459
|
|
||||||
Loss included in net income
|
—
|
|
|
604
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
604
|
|
||||||
Amortization of actuarial loss and prior service cost for defined benefit pension plans
|
—
|
|
|
1,585
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,585
|
|
||||||
Other
|
—
|
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||||
Equity in other comprehensive income of affiliates
|
1,336
|
|
|
(2,307
|
)
|
|
—
|
|
|
—
|
|
|
971
|
|
|
—
|
|
||||||
|
1,336
|
|
|
1,336
|
|
|
—
|
|
|
(2,307
|
)
|
|
971
|
|
|
1,336
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
14,998
|
|
|
$
|
14,998
|
|
|
$
|
45,008
|
|
|
$
|
(1,892
|
)
|
|
$
|
(58,114
|
)
|
|
$
|
14,998
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income (loss)
|
$
|
(3,433
|
)
|
|
$
|
(3,433
|
)
|
|
$
|
42,482
|
|
|
$
|
182
|
|
|
$
|
(39,231
|
)
|
|
$
|
(3,433
|
)
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
(423
|
)
|
|
—
|
|
|
(423
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in fair value
|
—
|
|
|
587
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
587
|
|
||||||
Loss included in net income
|
—
|
|
|
3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Amortization of actuarial loss and prior service cost for defined benefit pension plans
|
—
|
|
|
2,665
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,665
|
|
||||||
Other
|
—
|
|
|
(48
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(48
|
)
|
||||||
Equity in other comprehensive income of affiliates
|
2,784
|
|
|
(423
|
)
|
|
—
|
|
|
—
|
|
|
(2,361
|
)
|
|
—
|
|
||||||
|
2,784
|
|
|
2,784
|
|
|
—
|
|
|
(423
|
)
|
|
(2,361
|
)
|
|
2,784
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
(649
|
)
|
|
$
|
(649
|
)
|
|
$
|
42,482
|
|
|
$
|
(241
|
)
|
|
$
|
(41,592
|
)
|
|
$
|
(649
|
)
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Net income
|
$
|
35,000
|
|
|
$
|
35,000
|
|
|
$
|
102,091
|
|
|
$
|
824
|
|
|
$
|
(137,915
|
)
|
|
$
|
35,000
|
|
Other comprehensive income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustment
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,452
|
)
|
|
—
|
|
|
(1,452
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in fair value
|
—
|
|
|
(756
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(756
|
)
|
||||||
Loss included in net income
|
—
|
|
|
1,421
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,421
|
|
||||||
Amortization of actuarial loss and prior service cost for defined benefit pension plans
|
—
|
|
|
3,210
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,210
|
|
||||||
Other
|
—
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10
|
)
|
||||||
Equity in other comprehensive income of affiliates
|
2,413
|
|
|
(1,452
|
)
|
|
—
|
|
|
—
|
|
|
(961
|
)
|
|
—
|
|
||||||
|
2,413
|
|
|
2,413
|
|
|
—
|
|
|
(1,452
|
)
|
|
(961
|
)
|
|
2,413
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Comprehensive income (loss)
|
$
|
37,413
|
|
|
$
|
37,413
|
|
|
$
|
102,091
|
|
|
$
|
(628
|
)
|
|
$
|
(138,876
|
)
|
|
$
|
37,413
|
|
|
BZ
Intermediate
Holdings
LLC
(Parent)
|
|
Boise Paper Holdings and Co-issuers
|
|
Guarantor
Subsidiaries
|
|
Nonguarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Current
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Cash and cash equivalents
|
$
|
—
|
|
|
$
|
54,280
|
|
|
$
|
177
|
|
|
$
|
6,629
|
|
|
$
|
—
|
|
|
$
|
61,086
|
|
Receivables
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade, less allowances
|
—
|
|
|
1,316
|
|
|
243,151
|
|
|
9,881
|
|
|
—
|
|
|
254,348
|
|
||||||
Intercompany
|
—
|
|
|
3,265
|
|
|
330
|
|
|
2,149
|
|
|
(5,744
|
)
|
|
—
|
|
||||||
Other
|
—
|
|
|
2,785
|
|
|
4,439
|
|
|
2,637
|
|
|
—
|
|
|
9,861
|
|
||||||
Inventories
|
—
|
|
|
4
|
|
|
284,254
|
|
|
4,449
|
|
|
—
|
|
|
288,707
|
|
||||||
Deferred income taxes
|
—
|
|
|
11,997
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,997
|
|
||||||
Prepaid and other
|
—
|
|
|
9,144
|
|
|
4,311
|
|
|
684
|
|
|
—
|
|
|
14,139
|
|
||||||
|
—
|
|
|
82,791
|
|
|
536,662
|
|
|
26,429
|
|
|
(5,744
|
)
|
|
640,138
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Property and equipment, net
|
—
|
|
|
9,238
|
|
|
1,192,225
|
|
|
11,200
|
|
|
—
|
|
|
1,212,663
|
|
||||||
Fiber farms
|
—
|
|
|
—
|
|
|
25,113
|
|
|
—
|
|
|
—
|
|
|
25,113
|
|
||||||
|
—
|
|
|
9,238
|
|
|
1,217,338
|
|
|
11,200
|
|
|
—
|
|
|
1,237,776
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred financing costs
|
—
|
|
|
24,380
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
24,380
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
153,576
|
|
|
6,556
|
|
|
—
|
|
|
160,132
|
|
||||||
Intangible assets, net
|
—
|
|
|
—
|
|
|
128,319
|
|
|
13,699
|
|
|
—
|
|
|
142,018
|
|
||||||
Investments in affiliates
|
758,305
|
|
|
1,744,654
|
|
|
—
|
|
|
—
|
|
|
(2,502,959
|
)
|
|
—
|
|
||||||
Intercompany notes receivable
|
—
|
|
|
3,400
|
|
|
1,524
|
|
|
—
|
|
|
(4,924
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
5,945
|
|
|
499
|
|
|
185
|
|
|
—
|
|
|
6,629
|
|
||||||
Total assets
|
$
|
758,305
|
|
|
$
|
1,870,408
|
|
|
$
|
2,037,918
|
|
|
$
|
58,069
|
|
|
$
|
(2,513,627
|
)
|
|
$
|
2,211,073
|
|
|
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
|
$
|
—
|
|
|
$
|
15,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,000
|
|
Accounts payable
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Trade
|
—
|
|
|
11,423
|
|
|
186,106
|
|
|
5,673
|
|
|
—
|
|
|
203,202
|
|
||||||
Intercompany
|
—
|
|
|
210
|
|
|
1,934
|
|
|
3,569
|
|
|
(5,713
|
)
|
|
—
|
|
||||||
Accrued liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Compensation and benefits
|
—
|
|
|
20,817
|
|
|
43,162
|
|
|
1,407
|
|
|
—
|
|
|
65,386
|
|
||||||
Interest payable
|
—
|
|
|
10,529
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,529
|
|
||||||
Other
|
—
|
|
|
3,859
|
|
|
17,832
|
|
|
3,498
|
|
|
(31
|
)
|
|
25,158
|
|
||||||
|
—
|
|
|
61,838
|
|
|
249,034
|
|
|
14,147
|
|
|
(5,744
|
)
|
|
319,275
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Debt
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Long-term debt, less current portion
|
—
|
|
|
760,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
760,000
|
|
||||||
Intercompany notes payable
|
—
|
|
|
—
|
|
|
—
|
|
|
4,924
|
|
|
(4,924
|
)
|
|
—
|
|
||||||
|
—
|
|
|
760,000
|
|
|
—
|
|
|
4,924
|
|
|
(4,924
|
)
|
|
760,000
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Other
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Deferred income taxes
|
—
|
|
|
126,476
|
|
|
53,497
|
|
|
3,327
|
|
|
—
|
|
|
183,300
|
|
||||||
Compensation and benefits
|
—
|
|
|
116,077
|
|
|
76
|
|
|
—
|
|
|
—
|
|
|
116,153
|
|
||||||
Other long-term liabilities
|
—
|
|
|
47,712
|
|
|
26,102
|
|
|
226
|
|
|
—
|
|
|
74,040
|
|
||||||
|
—
|
|
|
290,265
|
|
|
79,675
|
|
|
3,553
|
|
|
—
|
|
|
373,493
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Commitments and contingent liabilities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Capital
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Business unit equity
|
856,825
|
|
|
856,825
|
|
|
1,709,209
|
|
|
36,171
|
|
|
(2,602,205
|
)
|
|
856,825
|
|
||||||
Accumulated other comprehensive loss
|
(98,520
|
)
|
|
(98,520
|
)
|
|
—
|
|
|
(726
|
)
|
|
99,246
|
|
|
(98,520
|
)
|
||||||
|
758,305
|
|
|
758,305
|
|
|
1,709,209
|
|
|
35,445
|
|
|
(2,502,959
|
)
|
|
758,305
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total liabilities and capital
|
$
|
758,305
|
|
|
$
|
1,870,408
|
|
|
$
|
2,037,918
|
|
|
$
|
58,069
|
|
|
$
|
(2,513,627
|
)
|
|
$
|
2,211,073
|
|
|
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
|
||||||||||||
Cash provided by (used for) operations
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
$
|
(3,433
|
)
|
|
$
|
(3,433
|
)
|
|
$
|
42,482
|
|
|
$
|
182
|
|
|
$
|
(39,231
|
)
|
|
$
|
(3,433
|
)
|
Items in net income (loss) not using
(providing) cash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in net income of affiliates
|
3,433
|
|
|
(42,664
|
)
|
|
—
|
|
|
—
|
|
|
39,231
|
|
|
—
|
|
||||||
Depreciation, depletion, and amortization of deferred financing costs and other
|
—
|
|
|
4,454
|
|
|
83,993
|
|
|
1,346
|
|
|
—
|
|
|
89,793
|
|
||||||
Share-based compensation expense
|
—
|
|
|
3,076
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,076
|
|
||||||
Pension expense
|
—
|
|
|
3,020
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,020
|
|
||||||
Deferred income taxes
|
—
|
|
|
(2,501
|
)
|
|
—
|
|
|
(123
|
)
|
|
—
|
|
|
(2,624
|
)
|
||||||
Restructuring costs
|
—
|
|
|
—
|
|
|
9,992
|
|
|
—
|
|
|
—
|
|
|
9,992
|
|
||||||
Other
|
—
|
|
|
434
|
|
|
676
|
|
|
290
|
|
|
—
|
|
|
1,400
|
|
||||||
Decrease (increase) in working capital
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Receivables
|
—
|
|
|
(682
|
)
|
|
(12,076
|
)
|
|
(2,233
|
)
|
|
(740
|
)
|
|
(15,731
|
)
|
||||||
Inventories
|
—
|
|
|
(1
|
)
|
|
3,691
|
|
|
(1,124
|
)
|
|
—
|
|
|
2,566
|
|
||||||
Prepaid expenses
|
—
|
|
|
990
|
|
|
(3,290
|
)
|
|
173
|
|
|
—
|
|
|
(2,127
|
)
|
||||||
Accounts payable and accrued liabilities
|
—
|
|
|
(10,294
|
)
|
|
9,935
|
|
|
659
|
|
|
740
|
|
|
1,040
|
|
||||||
Current and deferred income taxes
|
—
|
|
|
(893
|
)
|
|
1
|
|
|
203
|
|
|
—
|
|
|
(689
|
)
|
||||||
Pension payments
|
—
|
|
|
(5,091
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,091
|
)
|
||||||
Other
|
—
|
|
|
720
|
|
|
(338
|
)
|
|
22
|
|
|
—
|
|
|
404
|
|
||||||
Cash provided by (used for) operations
|
—
|
|
|
(52,865
|
)
|
|
135,066
|
|
|
(605
|
)
|
|
—
|
|
|
81,596
|
|
||||||
Cash provided by (used for) investment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenditures for property and equipment
|
—
|
|
|
(3,240
|
)
|
|
(60,481
|
)
|
|
(874
|
)
|
|
—
|
|
|
(64,595
|
)
|
||||||
Other
|
—
|
|
|
(434
|
)
|
|
1,402
|
|
|
(278
|
)
|
|
—
|
|
|
690
|
|
||||||
Cash used for investment
|
—
|
|
|
(3,674
|
)
|
|
(59,079
|
)
|
|
(1,152
|
)
|
|
—
|
|
|
(63,905
|
)
|
||||||
Cash provided by (used for) financing
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payments of long-term debt
|
—
|
|
|
(5,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,000
|
)
|
||||||
Payments (to) from Boise Inc., net
|
(1,100
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,100
|
)
|
||||||
Due to (from) affiliates
|
1,100
|
|
|
75,018
|
|
|
(76,326
|
)
|
|
208
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
(212
|
)
|
|
—
|
|
|
(212
|
)
|
||||||
Cash provided by (used for) financing
|
—
|
|
|
70,018
|
|
|
(76,326
|
)
|
|
(4
|
)
|
|
—
|
|
|
(6,312
|
)
|
||||||
Increase (decrease) in cash and cash equivalents
|
—
|
|
|
13,479
|
|
|
(339
|
)
|
|
(1,761
|
)
|
|
—
|
|
|
11,379
|
|
||||||
Balance at beginning of the period
|
—
|
|
|
40,801
|
|
|
516
|
|
|
8,390
|
|
|
—
|
|
|
49,707
|
|
||||||
Balance at end of the period
|
$
|
—
|
|
|
$
|
54,280
|
|
|
$
|
177
|
|
|
$
|
6,629
|
|
|
$
|
—
|
|
|
$
|
61,086
|
|
|
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
|
$
|
35,000
|
|
|
$
|
35,000
|
|
|
$
|
102,091
|
|
|
$
|
824
|
|
|
$
|
(137,915
|
)
|
|
$
|
35,000
|
|
Items in net income not using
(providing) cash
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in net income of affiliates
|
(35,000
|
)
|
|
(102,915
|
)
|
|
—
|
|
|
—
|
|
|
137,915
|
|
|
—
|
|
||||||
Depreciation, depletion, and amortization of deferred financing costs and other
|
—
|
|
|
3,653
|
|
|
72,159
|
|
|
1,378
|
|
|
—
|
|
|
77,190
|
|
||||||
Share-based compensation expense
|
—
|
|
|
2,729
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,729
|
|
||||||
Pension expense
|
—
|
|
|
5,474
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,474
|
|
||||||
Deferred income taxes
|
—
|
|
|
12,750
|
|
|
—
|
|
|
(140
|
)
|
|
—
|
|
|
12,610
|
|
||||||
Other
|
—
|
|
|
1
|
|
|
136
|
|
|
(180
|
)
|
|
—
|
|
|
(43
|
)
|
||||||
Decrease (increase) in working capital
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Receivables
|
—
|
|
|
(1,518
|
)
|
|
(6,988
|
)
|
|
(4,389
|
)
|
|
845
|
|
|
(12,050
|
)
|
||||||
Inventories
|
—
|
|
|
—
|
|
|
(19,888
|
)
|
|
(336
|
)
|
|
—
|
|
|
(20,224
|
)
|
||||||
Prepaid expenses
|
—
|
|
|
188
|
|
|
(4,350
|
)
|
|
(707
|
)
|
|
—
|
|
|
(4,869
|
)
|
||||||
Accounts payable and accrued liabilities
|
—
|
|
|
(16,116
|
)
|
|
(1,025
|
)
|
|
3,925
|
|
|
(845
|
)
|
|
(14,061
|
)
|
||||||
Current and deferred income taxes
|
—
|
|
|
7,221
|
|
|
1
|
|
|
230
|
|
|
—
|
|
|
7,452
|
|
||||||
Pension payments
|
—
|
|
|
(18,191
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18,191
|
)
|
||||||
Other
|
—
|
|
|
2,638
|
|
|
(708
|
)
|
|
180
|
|
|
—
|
|
|
2,110
|
|
||||||
Cash provided by (used for) operations
|
—
|
|
|
(69,086
|
)
|
|
141,428
|
|
|
785
|
|
|
—
|
|
|
73,127
|
|
||||||
Cash provided by (used for) investment
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Expenditures for property and equipment
|
—
|
|
|
(2,404
|
)
|
|
(49,741
|
)
|
|
(312
|
)
|
|
—
|
|
|
(52,457
|
)
|
||||||
Other
|
—
|
|
|
3
|
|
|
140
|
|
|
443
|
|
|
—
|
|
|
586
|
|
||||||
Cash provided by (used for) investment
|
—
|
|
|
(2,401
|
)
|
|
(49,601
|
)
|
|
131
|
|
|
—
|
|
|
(51,871
|
)
|
||||||
Cash provided by (used for) financing
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payments of long-term debt
|
—
|
|
|
(5,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,000
|
)
|
||||||
Payments (to) from Boise Inc., net
|
(52,440
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(52,440
|
)
|
||||||
Due to (from) affiliates
|
52,440
|
|
|
46,164
|
|
|
(100,312
|
)
|
|
1,708
|
|
|
—
|
|
|
—
|
|
||||||
Other
|
—
|
|
|
(247
|
)
|
|
—
|
|
|
(1,063
|
)
|
|
—
|
|
|
(1,310
|
)
|
||||||
Cash provided by (used for) financing
|
—
|
|
|
40,917
|
|
|
(100,312
|
)
|
|
645
|
|
|
—
|
|
|
(58,750
|
)
|
||||||
Increase (decrease) in cash and cash equivalents
|
—
|
|
|
(30,570
|
)
|
|
(8,485
|
)
|
|
1,561
|
|
|
—
|
|
|
(37,494
|
)
|
||||||
Balance at beginning of the period
|
—
|
|
|
82,532
|
|
|
9,737
|
|
|
4,727
|
|
|
—
|
|
|
96,996
|
|
||||||
Balance at end of the period
|
$
|
—
|
|
|
$
|
51,962
|
|
|
$
|
1,252
|
|
|
$
|
6,288
|
|
|
$
|
—
|
|
|
$
|
59,502
|
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Sales
|
$
|
621.7
|
|
|
$
|
637.8
|
|
|
$
|
1,228.7
|
|
|
$
|
1,282.7
|
|
Net income (loss)
|
(2.2
|
)
|
|
13.7
|
|
|
(3.4
|
)
|
|
35.0
|
|
||||
Net income (loss) per diluted share
|
(0.02
|
)
|
|
0.14
|
|
|
(0.03
|
)
|
|
0.35
|
|
||||
Net income excluding special items
|
10.5
|
|
|
13.7
|
|
|
12.6
|
|
|
35.0
|
|
||||
Net income excluding special items per diluted share
|
0.10
|
|
|
0.14
|
|
|
0.12
|
|
|
0.35
|
|
||||
EBITDA
|
55.8
|
|
|
75.1
|
|
|
112.0
|
|
|
162.6
|
|
||||
EBITDA excluding special items
|
71.2
|
|
|
75.1
|
|
|
127.3
|
|
|
162.6
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net income (loss)
|
$
|
(2.2
|
)
|
|
$
|
13.7
|
|
|
$
|
(3.4
|
)
|
|
$
|
35.0
|
|
Restructuring costs (a)
|
13.3
|
|
|
—
|
|
|
13.3
|
|
|
—
|
|
||||
Incremental depreciation due to changes in estimated useful lives (a)
|
5.5
|
|
|
—
|
|
|
10.8
|
|
|
—
|
|
||||
Transaction-related costs (b)
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
Tax provision for special items (c)
|
(8.0
|
)
|
|
—
|
|
|
(10.1
|
)
|
|
—
|
|
||||
Net income excluding special items
|
$
|
10.5
|
|
|
$
|
13.7
|
|
|
$
|
12.6
|
|
|
$
|
35.0
|
|
Weighted average diluted shares outstanding (d)
|
100.5
|
|
|
101.0
|
|
|
100.4
|
|
|
101.2
|
|
||||
Net income (loss) per diluted share
|
$
|
(0.02
|
)
|
|
$
|
0.14
|
|
|
$
|
(0.03
|
)
|
|
$
|
0.35
|
|
Net income per diluted share excluding special items
|
$
|
0.10
|
|
|
$
|
0.14
|
|
|
$
|
0.12
|
|
|
$
|
0.35
|
|
(a)
|
See "Our Operating Results" in this Management's Discussion and Analysis of Financial Condition and Results of Operations for more information related to restructuring costs and depreciation expenses.
|
(b)
|
Transaction-related costs include expenses associated with transactions, whether consummated or not. We explore strategic transactions to the extent we believe they may improve our competitive position or enhance shareholder value.
|
(c)
|
Special items are tax effected in the aggregate at an assumed combined federal and state statutory rate in effect for the period.
|
(d)
|
For the three and six months ended June 30, 2013, basic and diluted weighted average common shares outstanding reported in our Consolidated Statements of Operations were 100.5 million and 100.4 million, respectively. Adjusting for the special items above, diluted weighted average common shares outstanding increased 0.3 and 0.5 million shares, respectively, to reflect the incremental effect of dilutive common stock equivalents.
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Net income (loss)
|
$
|
(2.2
|
)
|
|
$
|
13.7
|
|
|
$
|
(3.4
|
)
|
|
$
|
35.0
|
|
Interest expense
|
15.5
|
|
|
15.4
|
|
|
30.9
|
|
|
30.8
|
|
||||
Interest income
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
||||
Income tax provision (benefit)
|
(1.3
|
)
|
|
8.8
|
|
|
(2.7
|
)
|
|
22.0
|
|
||||
Depreciation, amortization, and depletion
|
43.9
|
|
|
37.3
|
|
|
87.3
|
|
|
74.9
|
|
||||
EBITDA
|
$
|
55.8
|
|
|
$
|
75.1
|
|
|
$
|
112.0
|
|
|
$
|
162.6
|
|
Restructuring costs
|
13.3
|
|
|
—
|
|
|
13.3
|
|
|
—
|
|
||||
Transaction-related costs
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
EBITDA excluding special items
|
$
|
71.2
|
|
|
$
|
75.1
|
|
|
$
|
127.3
|
|
|
$
|
162.6
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Packaging
|
|
|
|
|
|
|
|
||||||||
Net sales prices (a)
|
|
|
|
|
|
|
|
||||||||
Linerboard, Total
|
$
|
538
|
|
|
$
|
452
|
|
|
$
|
522
|
|
|
$
|
451
|
|
Linerboard, External sales
|
479
|
|
|
404
|
|
|
472
|
|
|
400
|
|
||||
Newsprint
|
510
|
|
|
542
|
|
|
516
|
|
|
541
|
|
||||
Corrugated containers and sheets ($/msf)
|
80
|
|
|
76
|
|
|
79
|
|
|
76
|
|
||||
Sales volumes (thousands of short tons, except corrugated)
|
|
|
|
|
|
|
|
||||||||
Linerboard, Total
|
151.5
|
|
|
146.0
|
|
|
290.3
|
|
|
298.6
|
|
||||
Linerboard, External sales
|
38.6
|
|
|
38.2
|
|
|
75.3
|
|
|
91.1
|
|
||||
Newsprint
|
58.4
|
|
|
58.3
|
|
|
112.3
|
|
|
113.0
|
|
||||
Corrugated containers and sheets (mmsf)
|
2,613
|
|
|
2,485
|
|
|
5,165
|
|
|
4,918
|
|
||||
Input and outage costs
|
|
|
|
|
|
|
|
||||||||
Key input costs
|
|
|
|
|
|
|
|
||||||||
Fiber, including purchased rollstock (b)
|
$
|
70.2
|
|
|
$
|
63.6
|
|
|
$
|
145.4
|
|
|
$
|
129.3
|
|
Energy
|
16.9
|
|
|
13.4
|
|
|
33.1
|
|
|
28.4
|
|
||||
Chemicals
|
12.2
|
|
|
10.4
|
|
|
23.1
|
|
|
20.6
|
|
||||
Outage costs
|
—
|
|
|
5.9
|
|
|
22.4
|
|
|
7.7
|
|
||||
EBITDA (c)
|
48.1
|
|
|
40.0
|
|
|
65.3
|
|
|
77.9
|
|
||||
EBITDA excluding special items (c)
|
49.1
|
|
|
40.0
|
|
|
66.3
|
|
|
77.9
|
|
||||
Assets
|
986.1
|
|
|
943.5
|
|
|
|
|
|
||||||
Paper
|
|
|
|
|
|
|
|
||||||||
Net sales prices (a)
|
|
|
|
|
|
|
|
||||||||
Uncoated freesheet (d)
|
$
|
914
|
|
|
$
|
972
|
|
|
$
|
922
|
|
|
$
|
974
|
|
Uncoated freesheet, excluding St. Helens (e)
|
915
|
|
|
967
|
|
|
922
|
|
|
970
|
|
||||
Corrugating medium
|
586
|
|
|
481
|
|
|
574
|
|
|
482
|
|
||||
Market pulp, External sales
|
472
|
|
|
481
|
|
|
471
|
|
|
479
|
|
||||
Sales volumes
|
|
|
|
|
|
|
|
||||||||
Uncoated freesheet (d)
|
301.4
|
|
|
312.5
|
|
|
600.2
|
|
|
637.6
|
|
||||
Uncoated freesheet, excluding St. Helens (e)
|
300.5
|
|
|
297.6
|
|
|
596.0
|
|
|
607.1
|
|
||||
Corrugating medium
|
34.4
|
|
|
34.2
|
|
|
67.6
|
|
|
66.7
|
|
||||
Market pulp, External sales
|
6.3
|
|
|
10.3
|
|
|
7.6
|
|
|
18.8
|
|
||||
Input and outage costs
|
|
|
|
|
|
|
|
||||||||
Key input costs
|
|
|
|
|
|
|
|
||||||||
Fiber (f)
|
$
|
62.5
|
|
|
$
|
78.2
|
|
|
$
|
131.6
|
|
|
$
|
163.1
|
|
Energy
|
33.3
|
|
|
32.2
|
|
|
67.7
|
|
|
67.2
|
|
||||
Chemicals
|
51.8
|
|
|
53.1
|
|
|
102.6
|
|
|
106.4
|
|
||||
Outage costs
|
8.7
|
|
|
9.8
|
|
|
9.1
|
|
|
9.8
|
|
||||
EBITDA (c)
|
15.9
|
|
|
40.9
|
|
|
61.5
|
|
|
96.0
|
|
||||
EBITDA excluding special items (c)
|
28.2
|
|
|
40.9
|
|
|
73.8
|
|
|
96.0
|
|
||||
Assets
|
1,110.6
|
|
|
1,198.3
|
|
|
|
|
|
(a)
|
Average net selling prices for our principal products represent sales less freight costs, discounts, and allowances. As reported in Note
16
, Segment Information, of the Condensed Notes to Unaudited Quarterly Consolidated Financial
|
(b)
|
Includes purchases of corrugating medium from our Paper segment, which are eliminated in consolidation.
|
(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.
|
(e)
|
We ceased paper production at our mill in St. Helens, Oregon, in December 2012.
|
(f)
|
Fiber costs at our mill in St. Helens, Oregon, were $6.7 million and $13.5 million for the three and six months ended June 30, 2012, respectively.
|
•
|
Competing technologies, including electronic substitution, that affect the demand for our products.
|
•
|
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.
|
•
|
General global economic conditions, including, but not limited to, durable and nondurable goods production and white-collar employment.
|
•
|
Legislative 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 our
2012
Annual Report on Form 10-K.
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Sales
|
|
|
|
|
|
|
|
||||||||
Trade
|
$
|
604.8
|
|
|
$
|
618.6
|
|
|
$
|
1,196.1
|
|
|
$
|
1,252.1
|
|
Related party
|
16.8
|
|
|
19.3
|
|
|
32.5
|
|
|
30.6
|
|
||||
|
621.7
|
|
|
637.8
|
|
|
1,228.7
|
|
|
1,282.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
495.7
|
|
|
507.3
|
|
|
992.0
|
|
|
1,009.6
|
|
||||
Fiber costs from related party
|
5.3
|
|
|
4.5
|
|
|
11.5
|
|
|
9.4
|
|
||||
Depreciation, amortization, and depletion
|
43.9
|
|
|
37.3
|
|
|
87.3
|
|
|
74.9
|
|
||||
Selling and distribution expenses
|
33.8
|
|
|
30.6
|
|
|
62.6
|
|
|
61.2
|
|
||||
General and administrative expenses
|
19.7
|
|
|
20.0
|
|
|
38.6
|
|
|
40.0
|
|
||||
Restructuring costs
|
9.0
|
|
|
—
|
|
|
9.5
|
|
|
—
|
|
||||
Other (income) expense, net
|
1.9
|
|
|
0.4
|
|
|
1.8
|
|
|
0.1
|
|
||||
|
609.3
|
|
|
600.1
|
|
|
1,203.2
|
|
|
1,195.2
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Income from operations
|
$
|
12.4
|
|
|
$
|
37.7
|
|
|
$
|
25.4
|
|
|
$
|
87.4
|
|
|
|
|
|
|
|
|
|
||||||||
Sales
|
|
|
|
|
|
|
|
||||||||
Trade
|
97.3
|
%
|
|
97.0
|
%
|
|
97.4
|
%
|
|
97.6
|
%
|
||||
Related party
|
2.7
|
|
|
3.0
|
|
|
2.6
|
|
|
2.4
|
|
||||
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
||||
|
|
|
|
|
|
|
|
||||||||
Costs and expenses
|
|
|
|
|
|
|
|
||||||||
Materials, labor, and other operating expenses (excluding depreciation)
|
79.7
|
%
|
|
79.5
|
%
|
|
80.7
|
%
|
|
78.7
|
%
|
||||
Fiber costs from related party
|
0.9
|
|
|
0.7
|
|
|
0.9
|
|
|
0.7
|
|
||||
Depreciation, amortization, and depletion
|
7.1
|
|
|
5.8
|
|
|
7.1
|
|
|
5.8
|
|
||||
Selling and distribution expenses
|
5.4
|
|
|
4.8
|
|
|
5.1
|
|
|
4.8
|
|
||||
General and administrative expenses
|
3.2
|
|
|
3.1
|
|
|
3.1
|
|
|
3.1
|
|
||||
Restructuring costs
|
1.4
|
|
|
—
|
|
|
0.8
|
|
|
—
|
|
||||
Other (income) expense, net
|
0.3
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
||||
|
98.0
|
%
|
|
94.1
|
%
|
|
97.9
|
%
|
|
93.2
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
||||||
Income from operations
|
2.0
|
%
|
|
5.9
|
%
|
|
2.1
|
%
|
|
6.8
|
%
|
|
Three Months Ended
June 30 |
|
Six Months Ended June 30
|
||||||||||||
|
2013
|
|
2012
|
|
2013
|
|
2012
|
||||||||
Fiber
|
$
|
110.9
|
|
|
$
|
123.4
|
|
|
$
|
234.7
|
|
|
$
|
256.4
|
|
Chemicals
|
64.0
|
|
|
63.5
|
|
|
125.7
|
|
|
127.0
|
|
||||
Energy
|
50.2
|
|
|
45.6
|
|
|
101.0
|
|
|
95.8
|
|
||||
Labor
|
86.9
|
|
|
90.1
|
|
|
174.4
|
|
|
181.0
|
|
||||
|
$
|
312.0
|
|
|
$
|
322.7
|
|
|
$
|
635.8
|
|
|
$
|
660.1
|
|
|
Six Months Ended June 30
|
||||||
|
2013
|
|
2012
|
||||
Cash provided by operations
|
$
|
81.6
|
|
|
$
|
73.1
|
|
Cash used for investment
|
(63.9
|
)
|
|
(51.9
|
)
|
||
Cash used for financing
|
(6.3
|
)
|
|
(58.8
|
)
|
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.
|
ITEM 1.
|
LEGAL PROCEEDINGS
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
ITEM 3.
|
DEFAULTS UPON SENIOR SECURITIES
|
ITEM 4.
|
MINE SAFETY DISCLOSURES
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
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)
|
Exhibit
Number
|
|
Exhibit Description
|
|
Incorporated by Reference
|
|
Filed or
Furnished Herewith
|
||||
|
|
Form
|
|
Exhibit
Number
|
|
Filing
Date
|
|
|||
|
|
|
|
|
|
|||||
10.1
|
|
Paper Purchase Agreement Dated June 25, 2011, Between Boise White Paper, L.L.C. and OfficeMax Incorporated
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
10.2
|
|
First Amendment to Paper Purchase Agreement Dated June 20, 2013, Between Boise White Paper, L.L.C. and OfficeMax Incorporated
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
11
|
|
Presented in Footnote 3, Net Income (Loss) Per Common Share, to Condensed Notes to Unaudited Quarterly Consolidated Financial Statements
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
31.1
|
|
CEO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
31.2
|
|
CFO Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
32
|
|
Section 906 Certifications of Chief Executive Officer and Chief Financial Officer of Boise Inc. and BZ Intermediate Holdings LLC
|
|
|
|
|
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
|
101
|
|
Financial Statements in XBRL Format
|
|
|
|
|
|
|
|
X
|
1.1
|
Boise
: Boise White Paper, L.L.C., a Delaware limited liability company (“Boise”).
|
1.2
|
OfficeMax
: OfficeMax Incorporated and all of its current and future affiliates and majority and wholly-owned subsidiaries (collectively, “OfficeMax”).
|
2.
|
Purchase and Sale Agreement
:
|
2.1
|
OfficeMax agrees to purchase office papers from Boise and Boise agrees to supply office papers to OfficeMax, subject to the terms and conditions set forth herein. References to OfficeMax's purchase volume shall only include requirements for its operations in the U.S., Canada, and Puerto Rico. OfficeMax has the ability to add or delete any brand or item to their volume assortment and to market to all channels and media as determined in their sole discretion, subject to the terms and conditions set forth herein.
|
3.1
|
“Commodity Papers” shall include all products listed on Exhibit B (under the heading “Commodity Papers.” Boise shall update Exhibit B periodically to reflect the products sold by Boise to OfficeMax.
|
3.2
|
Pricing and terms for Commodity Papers are set forth on Exhibits A and B.
|
3.3
|
In both 2011 and 2012, OfficeMax will purchase from Boise no less than the share of Commodity Papers and Non-Commodity Papers (defined below) that OfficeMax purchased from Boise in 2010
.
For purposes of the Agreement, “share” shall mean the percentage derived by dividing the tons of paper supplied by Boise and sold by OfficeMax to its customers as compared to the total tons of paper (defined as cut sheet paper including copy, multipurpose, laser, inkjet, recycled and colors) sold by OfficeMax as sourced from all paper suppliers.
|
3.4
|
From January 1, 2013 until such time as this Agreement is terminated (excluding any Phase-Down period), OfficeMax will purchase from Boise at least an 80% share of its Commodity Paper purchases, subject to the provisions below.
|
3.5
|
Beginning in 2012 (for calendar years 2013 and beyond), OfficeMax may obtain quotes from other paper producers to supply ***** volume (in tons) of office papers equivalent to ***** then being purchased by OfficeMax from Boise. If OfficeMax receives a bona fide bid that is at least ***** better than the net price (including all terms and promotional funding) OfficeMax is currently paying Boise for papers of comparable quality and quantity, it may purchase such papers from the other producer, if the following conditions are met:
|
3.5.1
|
*****
|
3.5.2
|
*****
|
3.5.3
|
*****
|
3.5.4
|
*****
|
3.6
|
Within the 90 days after Boise has announced a price increase, unless Boise otherwise agrees, OfficeMax shall not purchase more than ***** of the average monthly volume purchased for Commodity Papers during the prior three months. To the extent Boise accepts orders for greater than the ***** limitation, Boise may charge OfficeMax the post-increase price for the incremental volume.
|
4.
|
Products - Non-Commodity Papers
|
4.1
|
“Non-Commodity Papers” shall include all paper products listed on Exhibit B, other than those defined as “Commodity Papers” above. Pricing and terms for Non-Commodity Papers are set forth on Exhibit A and B.
|
4.2
|
For the term of this Agreement (including any Phase-Down) OfficeMax will continue to buy its full requirements of Non-Commodity Papers from Boise, subject to the terms and pricing parameters set forth herein, and except as provided below. Notwithstanding the foregoing, OfficeMax shall be permitted to purchase Non-Commodity Papers produced by other paper manufacturers provided, however, that if Boise produces a competing Non-Commodity Paper, OfficeMax shall purchase the paper from Boise unless a customer specifies the other competing brand; it being understood that OfficeMax will encourage and promote the sale of Boise's products.
|
4.2.1
|
In addition, the restrictions set forth in this Section 4.2 shall not apply to OfficeMax's current and future assortment of Non-Commodity Papers sold in its retail business (including Reliable and officemax.com) and new channel (store within a store) business. If OfficeMax offers a Non-Commodity Paper produced by another paper manufacturer on its e-commerce site(s), it agrees to offer the equivalent Boise-branded Non-Commodity Paper on the site(s) as well.
|
4.2.2
|
Notwithstanding anything above, nothing in this Section 4.2 shall permit OfficeMax to include any Non-Commodity Paper manufactured from a paper manufacturer other than Boise in the contract catalog, without Boise's express written permission.
|
4.3
|
For contract catalog, OfficeMax may purchase branded paper products of non-paper producers that can be produced by Boise (“OEM Products”, such as HP). so long as the purchases of OEM paper shall not exceed 110% of the volume purchased in the prior year by brand.
|
4.3.1
|
OfficeMax shall use its best efforts to cause the sellers of OEM Products to use paper produced by Boise when Boise can produce such paper and wishes to make such paper for the OEM. OfficeMax shall obtain a copy of the quotes of the other paper producers for such OEM products and shall share a copy with Boise. Boise shall have the opportunity to meet the price of the other producer and if Boise chooses to do so, OfficeMax shall cause the OEM to use Boise's paper. OfficeMax and Boise shall closely cooperate with respect to such opportunities but OfficeMax shall not be required to pay more for the OEM product with Boise produced paper.
|
5.1
|
Initial Term - July 1, 2011 to December 31, 2017.
|
5.2
|
Renewal Term - This Agreement shall renew automatically for additional one-year terms subject to a notice of termination pursuant to Section 5.3 of this Agreement.
|
5.3
|
Termination - To terminate this agreement, a party must deliver a written notice of termination prior to July 1 in the last year of the then current term and such termination shall be effective on the last day of such Initial Term or any renewal term. Notwithstanding the effective date of termination, OfficeMax will continue to purchase and Boise will continue to supply product during the Phase-Down period as set forth in Section 5.5 below. The Phase-Down will begin on January 1 following the effective date of termination.
|
5.4
|
Phase-Down (2013) - If Phase-Down is triggered under Section 3.5 on January 1, 2013, OfficeMax may reduce its volume of Commodity Papers and Non-Commodity Papers over a four year period, as follows:
|
5.4.1
|
In 2013, OfficeMax will continue to purchase a minimum of 80% of the total tons of Boise supplied Commodity Papers and Non-Commodity Papers sold by OfficeMax in 2012;
|
5.4.2
|
In 2014, OfficeMax will continue to purchase a minimum of 60% of the total tons of Boise supplied Commodity Papers and Non-Commodity Papers sold by OfficeMax in 2012;
|
5.4.3
|
In 2015, OfficeMax will continue to purchase a minimum of 40% of the total tons of Boise supplied Commodity Papers and Non-Commodity Papers sold by OfficeMax in 2012; and
|
5.4.4
|
In 2016, OfficeMax will continue to purchase a minimum of 20% of the total tons of Boise supplied Commodity Papers sold by OfficeMax in 2012.
|
5.5
|
Phase-Down (2014 and beyond) - If Phase-Down is triggered under Section 3.5 on January 1, 2014 or thereafter, OfficeMax may reduce its volume of Commodity Papers and Non-Commodity Papers over a two year period, as follows:
|
5.5.1
|
In the first 90 days after Phase-Down begins, OfficeMax will purchase on a prorated basis at least 90% of the total tons Boise supplied papers sold by OfficeMax in the year preceding Phase-Down;
|
5.5.2
|
In the first year of Phase-Down (calculated to include the 90 day period referenced above), OfficeMax will continue to purchase 66% of the total unit volume of Boise supplied paper sold by OfficeMax in the year preceding Phase-Down; and
|
5.5.3
|
In the second year of Phase-Down, OfficeMax will continue to purchase 33% of the total unit volume of Boise supplied paper sold by OfficeMax in the year preceding Phase-Down.
|
6.1.
|
OfficeMax shall
not
be placed on allocation unless and until the effective date of termination pursuant to Section 5.3 hereof in which event such allocation shall be on a ratable basis with Boise's other customers. If OfficeMax orders more paper than Boise can produce, Boise shall either purchase paper for resale to OfficeMax at the then current prices (including Boise's charge for its actual cost in handling such paper) or allow OfficeMax to obtain an alternate source of supply for the requirements in excess of Boise's capacity.
|
6.2
|
General terms and conditions are attached as Exhibit C.
|
6.3
|
The parties shall keep the pricing terms of this agreement strictly confidential. Pricing for products shall not be disclosed within the parties' respective organizations except on a strict need-to-know basis and in no case shall any sales representatives of any party be told of the pricing under this Agreement.
|
7.
|
Agreement
:
|
7.1
|
This Agreement will supersede all prior agreements between Boise and OfficeMax, including, but not limited to the following:
|
7.1.1
|
Paper Sales Agreement effective October 29, 2004, between Boise and OfficeMax; and
|
7.1.2
|
Any domestic Vendor Profile between Boise and OfficeMax.
|
OFFICEMAX INCORPORATED
|
|
BOISE WHITE PAPER, L.L.C.
|
|
|
|
By: /s/ Ryan T. Vero
|
|
By: /s/ Robert A. Warren
|
Name: Ryan T. Vero
|
|
Name: Robert A. Warren
|
Title: EVP/CMO
|
|
Title: EVP & Chief Operating Officer
|
1.
|
Commodity Papers Pricing
:
Net pricing for each product identified on Exhibit B
as a “Commodity Paper” shall be as set forth in this exhibit. *****
|
2.
|
Non-Commodity Papers Pricing
:
Net pricing for each product identified herein as a “Non-Commodity Papers” shall be priced as follows:
|
2.1
|
Pricing for products on Exhibit B *****, shall be determined using the pricing rule for Commodity Papers, described above.
|
2.2
|
Pricing for products identified on Exhibit B with the designation of “Boise Brand” in the pricing rule column shall be determined by the price at which Boise sells products of like kind, quality, and quantity to other unrelated purchasers and OfficeMax' price for such products shall be the lowest net price at which Boise sells to similar third party purchasers.
|
2.3
|
For products produced by Boise solely for OfficeMax and identified on Exhibit B with the designation “OMX Brand,” Boise and OfficeMax shall negotiate a price. If the parties can't agree on a price, OfficeMax may solicit prices for comparable products and quantities from other producers provided that Boise shall have the right to meet any such prices.
|
2.4
|
Several of the products in Exhibit B are purchased from other producers and the name of the current producer is noted in the “producer” column. Such products shall be sold to OfficeMax at the prices noted in the pricing rule column, as may be adjusted from time to time Boise will provide at least thirty (30) days prior written notice of any adjustments.
|
3.
|
Promotional Pricing
|
3.1
|
Boise will pay OfficeMax the following amounts for mutually agreed upon promotional opportunities:
|
4.1
|
Prices for Grand & Toy products shall be determined by converting the prices set forth in this exhibit to Canadian dollars using the exchange rate set forth in the
Wall Street Journal
on the last business day of the previous month. Payments shall be made in Canadian currency.
|
4.2
|
All products shall be priced and invoiced at time of shipment, F.O.B. Boise's dock (Mill, RSC, or Warehouse), freight prepaid and allowed. Boise shall be responsible for product quality or transit damage that may be incurred during shipment from the mill to an OfficeMax facility. OfficeMax shall be responsible for any damages incurred after the shipment has been delivered.
|
4.3
|
Terms are ***** from date of invoice. Payments shall be made via electronic funds transfers. OfficeMax shall be entitled to a ***** prompt pay discount for payments made within ***** days. The prompt pay discount will be based on *****.
|
4.4
|
All discounts under this agreement shall be calculated on the fifth day of each month based on share purchased within the preceding month. At the end of each year, the parties will true-up any discounts based on annual volumes purchased.
|
4.5
|
To preserve the confidentiality of the pricing hereunder, *****.
|
4.6
|
In lieu of any other “Return to Vendor” program instituted at OfficeMax, Boise will pay OfficeMax *****.
|
4.7
|
Boise and OfficeMax may agree on a different price for truckload drop shipments. Truckload drop shipments are defined as customers who commit to purchasing at least *****. In all other cases, Boise and OfficeMax will agree on pricing for drop shipments.
|
4.8
|
For purposes of the Agreement, Boise may implement a fuel surcharge *****.
|
4.9
|
All pricing to OfficeMax takes into account all of the commercial customs and practices (including mode of shipping and freight) in effect prior to the effective date of this Agreement. It is the intent of the parties that they will continue to work under the same commercial customs and practices currently in place on the date of this Agreement, unless specifically addressed herein.
|
Exhibit B - Commodity and Non-Commodity Cutsheet SKUs
|
||||||||||||||
|
||||||||||||||
Purchasing
|
|
Grade
|
*****
|
Description
|
Brightness
|
Basis Wt
|
Sheet Size
|
Sheets / Ream
|
Rms / Ctn
|
Premium Ream-Wrap
|
Post Consumer Content
|
*****
|
*****
|
|
|
|
|
Commodity Papers
|
Boise X-9®
|
|
|
|
|
|
|
|
|
||
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise X-9®
|
92
|
20
|
8.5 x 11
|
500
|
10
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise X-9®
|
92
|
20
|
8.5 x 11
|
500
|
5
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise X-9®
|
92
|
20
|
8.5 x 11 - 3HP
|
500
|
10
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise X-9®
|
92
|
20
|
8.5 x 14
|
500
|
10
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise X-9®
|
92
|
20
|
11 x 17
|
500
|
5
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise X-9®
|
92
|
20
|
A4
|
500
|
10
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise X-9®
|
92
|
16
|
8.5 x 11
|
500
|
12
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise X-9®
|
92
|
16
|
8.5 x 14
|
500
|
12
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise X-9®
|
92
|
16
|
8.5 x 17
|
500
|
6
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise X-9®
|
92
|
24
|
8.5 x 11
|
500
|
10
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise X-9®
|
92
|
24
|
8.5 x 11 - 3HP
|
500
|
10
|
—
|
—
|
*****
|
*****
|
|
|
|
|
|
Boise ASPEN® 30
|
|
|
|
|
|
|
|
|
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise ASPEN® 30
|
92
|
20
|
8.5 x 11
|
500
|
10
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise ASPEN® 30
|
92
|
20
|
8.5 x 11
|
500
|
5
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise ASPEN® 30
|
92
|
20
|
8.5 x 11 - 3HP
|
500
|
10
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise ASPEN® 30
|
92
|
20
|
8.5 x 14
|
500
|
10
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
COMM
|
*****
|
Boise ASPEN® 30
|
92
|
20
|
11 x 17
|
500
|
5
|
—
|
30%
|
*****
|
*****
|
|
|
|
|
|
OfficeMax Copy
|
|
|
|
|
|
|
|
|
|
OfficeMax
|
—
|
|
COMM
|
*****
|
OfficeMax Copy
|
92
|
20
|
8.5 x 11
|
500
|
10
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
—
|
|
COMM
|
*****
|
OfficeMax Copy
|
92
|
20
|
8.5 x 11 - 3HP
|
500
|
10
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
—
|
|
COMM
|
*****
|
OfficeMax Copy
|
92
|
20
|
8.5 x 14
|
500
|
10
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
—
|
|
COMM
|
*****
|
OfficeMax Copy
|
92
|
20
|
11 x 17
|
500
|
5
|
—
|
—
|
*****
|
*****
|
|
|
|
|
|
OfficeMax Copy 30% Recycled
|
|
|
|
|
|
|
|
||
OfficeMax
|
—
|
|
COMM
|
*****
|
OfficeMax Copy 30% Recycled
|
92
|
20
|
8.5 x 11
|
500
|
10
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
—
|
|
COMM
|
*****
|
OfficeMax Copy 30% Recycled
|
92
|
20
|
8.5 x 11 - 3HP
|
500
|
10
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
—
|
|
COMM
|
*****
|
OfficeMax Copy 30% Recycled
|
92
|
20
|
8.5 x 14
|
500
|
10
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
—
|
|
COMM
|
*****
|
OfficeMax Copy 30% Recycled
|
92
|
20
|
11 x 17
|
500
|
5
|
—
|
30%
|
*****
|
*****
|
Exhibit B - Commodity and Non-Commodity Cutsheet SKUs
|
||||||||||||||
|
||||||||||||||
Purchasing
|
|
Grade
|
*****
|
Description
|
Brightness
|
Basis Wt
|
Sheet Size
|
Sheets / Ream
|
Rms / Ctn
|
Premium Ream-Wrap
|
Post Consumer Content
|
*****
|
*****
|
|
|
|
|
|
Grand&Toy Premium Copy
|
|
|
|
|
|
|
|
|||
—
|
Grand&Toy
|
COMM
|
*****
|
Grand&Toy Premium Copy
|
92
|
20
|
8.5 x 11
|
500
|
10
|
—
|
—
|
*****
|
*****
|
|
—
|
Grand&Toy
|
COMM
|
*****
|
Grand&Toy Premium Copy
|
92
|
20
|
8.5 x 11 - 3HP
|
500
|
10
|
—
|
—
|
*****
|
*****
|
|
—
|
Grand&Toy
|
COMM
|
*****
|
Grand&Toy Premium Copy
|
92
|
20
|
8.5 x 14
|
500
|
10
|
—
|
—
|
*****
|
*****
|
|
—
|
Grand&Toy
|
COMM
|
*****
|
Grand&Toy Premium Copy
|
92
|
20
|
11 x 17
|
500
|
5
|
—
|
—
|
*****
|
*****
|
|
—
|
Grand&Toy
|
COMM
|
*****
|
Grand&Toy Premium Copy
|
92
|
20
|
8.5 x 11
|
500
|
5
|
—
|
—
|
*****
|
*****
|
|
—
|
Grand&Toy
|
COMM
|
*****
|
Grand&Toy Premium Copy
|
92
|
20
|
8.5 x 14
|
500
|
5
|
—
|
—
|
*****
|
*****
|
|
|
|
|
|
Grand&Toy Copy
|
|
|
|
|
|
|
|
|
||
—
|
Grand&Toy
|
COMM
|
*****
|
Grand&Toy Copy
|
92
|
20
|
8.5 x 11
|
500
|
10
|
—
|
—
|
*****
|
*****
|
|
|
|
|
|
|
Grand&Toy Recycled Office Paper
|
|
|
|
|
|
|
|||
—
|
Grand&Toy
|
|
COMM
|
*****
|
Grand&Toy Recycled Office Paper
|
92
|
20
|
8.5 x 11
|
500
|
5
|
Kraft
|
30%
|
*****
|
*****
|
—
|
Grand&Toy
|
|
COMM
|
*****
|
Grand&Toy Recycled Office Paper
|
92
|
20
|
8.5 x 11 - 3HP
|
500
|
5
|
Kraft
|
30%
|
*****
|
*****
|
—
|
Grand&Toy
|
|
COMM
|
*****
|
Grand&Toy Recycled Office Paper
|
92
|
20
|
8.5 x 14
|
500
|
5
|
Kraft
|
30%
|
*****
|
*****
|
|
|
|
|
|
Xerographic Copy Paper (white box)
|
|
|
|
|
|
|
|
||
OfficeMax
|
—
|
|
COMM
|
*****
|
Xerographic Copy Paper (white box)
|
—
|
20
|
8.5 x 11
|
500
|
10
|
—
|
—
|
*****
|
*****
|
Exhibit B - Commodity and Non-Commodity Cutsheet SKUs
|
||||||||||||||
|
||||||||||||||
Purchasing
|
|
Grade
|
*****
|
Description
|
Brightness
|
Basis Wt
|
Sheet Size
|
Sheets / Ream
|
Rms / Ctn
|
Premium Ream-Wrap
|
Post Consumer Content
|
*****
|
*****
|
|
|
|
|
|
|
Boise ASPEN® 50
|
|
|
|
|
|
|
|
|
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® 50
|
92
|
20
|
8.5 x 11
|
500
|
10
|
—
|
50%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® 50
|
92
|
20
|
8.5 x 11 - 3HP
|
500
|
10
|
—
|
50%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® 50
|
92
|
20
|
8.5 x 14
|
500
|
10
|
—
|
50%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® 50
|
92
|
20
|
11 x 17
|
500
|
5
|
—
|
50%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® 50
|
92
|
24
|
8.5 x 11
|
500
|
8
|
—
|
50%
|
*****
|
*****
|
|
|
|
|
|
Boise ASPEN® 100
|
|
|
|
|
|
|
|
|
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® 100
|
92
|
20
|
8.5 x 11
|
500
|
10
|
—
|
100%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® 100
|
92
|
20
|
8.5 x 11 - 3HP
|
500
|
10
|
—
|
100%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® 100
|
92
|
20
|
8.5 x 14
|
500
|
10
|
—
|
100%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® 100
|
92
|
20
|
11 x 17
|
500
|
5
|
—
|
100%
|
*****
|
*****
|
|
|
|
|
|
Boise X-9® SPLOX®
|
|
|
|
|
|
|
|
|
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise X-9® SPLOX®
|
92
|
20
|
8.5 x 11
|
2,500
|
N/A
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise X-9® SPLOX®
|
92
|
20
|
8.5 x 11 - 3HP
|
2,500
|
N/A
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise X-9® SPLOX®
|
92
|
20
|
11 x 17
|
1,500
|
N/A
|
—
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise X-9® SPLOX®
|
92
|
24
|
8.5 x 11
|
2000
|
N/A
|
—
|
—
|
*****
|
*****
|
Exhibit B - Commodity and Non-Commodity Cutsheet SKUs
|
||||||||||||||
|
||||||||||||||
Purchasing
|
|
Grade
|
*****
|
Description
|
Brightness
|
Basis Wt
|
Sheet Size
|
Sheets / Ream
|
Rms / Ctn
|
Premium Ream-Wrap
|
Post Consumer Content
|
*****
|
*****
|
|
|
|
|
|
|
Boise X-9® Hi-Brite SPLOX®
|
|
|
|
|
|
|
|
||
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise X-9® Hi-Brite SPLOX®
|
96
|
20
|
8.5 x 11
|
2,500
|
N/A
|
—
|
—
|
*****
|
*****
|
|
|
|
|
|
Boise ASPEN® 30 SPLOX®
|
|
|
|
|
|
|
|
||
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® 30 SPLOX®
|
92
|
20
|
8.5 x 11
|
2,500
|
N/A
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® 30 SPLOX®
|
92
|
20
|
8.5 x 11 - 3HP
|
2,500
|
N/A
|
—
|
30%
|
*****
|
*****
|
|
|
|
|
|
Boise ASPEN® Laser
|
|
|
|
|
|
|
|
|
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® Laser
|
96
|
24
|
8.5 x 11
|
500
|
8
|
P1S
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® Laser
|
96
|
24
|
8.5 x 11 - 3HP
|
500
|
8
|
P1S
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® Laser
|
96
|
24
|
8.5 x 14
|
500
|
6
|
P1S
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® Laser
|
96
|
24
|
11 x 17
|
500
|
4
|
P1S
|
30%
|
*****
|
*****
|
|
|
|
|
|
Boise POLARIS™
|
|
|
|
|
|
|
|
|
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise POLARIS®
|
97
|
20
|
8.5 x 11
|
500
|
10
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise POLARIS®
|
97
|
20
|
8.5 x 11 - 3HP
|
500
|
10
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise POLARIS®
|
97
|
20
|
8.5 x 14
|
500
|
10
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise POLARIS®
|
97
|
20
|
11 x 17
|
500
|
5
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise POLARIS®
|
97
|
24
|
8.5 x 11
|
500
|
10
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise POLARIS®
|
97
|
24
|
11 x 17
|
500
|
5
|
P1S
|
—
|
*****
|
*****
|
Exhibit B - Commodity and Non-Commodity Cutsheet SKUs
|
||||||||||||||
|
||||||||||||||
Purchasing
|
|
Grade
|
*****
|
Description
|
Brightness
|
Basis Wt
|
Sheet Size
|
Sheets / Ream
|
Rms / Ctn
|
Premium Ream-Wrap
|
Post Consumer Content
|
*****
|
*****
|
|
|
|
|
|
|
Boise HD:P™ Everyday Laser
|
|
|
|
|
|
|
|
||
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Everyday Laser
|
92
|
22
|
8.5 x 11
|
500
|
8
|
P1S
|
—
|
*****
|
*****
|
|
|
|
|
|
Boise HD:P™ All-In-One
|
|
|
|
|
|
|
|
||
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ All-In-One
|
96
|
22
|
8.5 x 11
|
500
|
8
|
P1S
|
—
|
*****
|
*****
|
|
|
|
|
|
Boise HD:P™ Premier Print
|
|
|
|
|
|
|
|
||
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Premier Print
|
96
|
24
|
8.5 x 11
|
500
|
5
|
Poly
|
—
|
*****
|
*****
|
|
|
|
|
|
Boise HD:P™ Presentation Laser/Cover
|
|
|
|
|
|
|
|||
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Presentation Laser
|
96
|
24
|
8.5 x 11
|
500
|
8
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Presentation Laser
|
96
|
24
|
8.5 x 11 - 3HP
|
500
|
8
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Presentation Laser
|
96
|
24
|
11 x 17
|
500
|
4
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Presentation Laser
|
96
|
24
|
8.5 x 14
|
500
|
6
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Presentation Laser
|
96
|
28
|
8.5 x 11
|
500
|
6
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Presentation Laser
|
96
|
32
|
8.5 x 11
|
500
|
6
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Presentation Laser
|
96
|
32
|
11 x 17
|
500
|
3
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Presentation Laser Cover
|
96
|
80
|
8.5 x 11
|
250
|
6
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Presentation Laser Cover
|
96
|
80
|
8.5 x 14
|
250
|
6
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Presentation Laser Cover
|
96
|
80
|
17 x 11
|
250
|
3
|
P1S
|
—
|
*****
|
*****
|
Exhibit B - Commodity and Non-Commodity Cutsheet SKUs
|
||||||||||||||
|
||||||||||||||
Purchasing
|
|
Grade
|
*****
|
Description
|
Brightness
|
Basis Wt
|
Sheet Size
|
Sheets / Ream
|
Rms / Ctn
|
Premium Ream-Wrap
|
Post Consumer Content
|
*****
|
*****
|
|
|
|
|
|
|
Boise HD:P™ Glossy Color Laser
|
|
|
|
|
|
|
|
||
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Glossy Color Laser
|
96
|
32
|
8.5 x 11
|
500
|
8
|
P1S
|
15%
|
*****
|
*****
|
|
|
|
|
|
Boise HD:P™ Color Copy Cover
|
|
|
|
|
|
|
|
||
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Color Copy Cover
|
98
|
80
|
8.5 x 11
|
250
|
6
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Color Copy Cover
|
98
|
80
|
8.5 x 14
|
250
|
3
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Color Copy Cover
|
98
|
80
|
17 x 11
|
250
|
3
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Color Copy Cover
|
98
|
80
|
18 x 12
|
250
|
3
|
P1S
|
—
|
*****
|
*****
|
|
|
|
|
|
Boise HD:P™ Color Copy
|
|
|
|
|
|
|
|
|
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Color Copy
|
98
|
28
|
8.5 x 11
|
500
|
6
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Color Copy
|
98
|
28
|
8.5 x 11 - 3HP
|
500
|
6
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Color Copy
|
98
|
28
|
8.5 x 14
|
500
|
3
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Color Copy
|
98
|
28
|
17 x 11
|
500
|
3
|
P1S
|
—
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise HD:P™ Color Copy
|
98
|
28
|
18 x 12
|
500
|
3
|
P1S
|
—
|
*****
|
*****
|
|
|
|
|
|
Boise ASPEN® Color Copy
|
|
|
|
|
|
|
|
|
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® Color Copy
|
96
|
28
|
8.5 x 11
|
500
|
8
|
P1S
|
100%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise ASPEN® Color Copy
|
96
|
80
|
8.5 x 11
|
250
|
8
|
P1S
|
100%
|
*****
|
*****
|
|
|
|
|
|
Mohawk Color Copy 100% Recycled
|
|
|
|
|
|
|
|
||
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Mohawk Color Copy 100% Recycled
|
96
|
28
|
8.5 x 11
|
500
|
8
|
P1S
|
100%
|
*****
|
*****
|
Exhibit B - Commodity and Non-Commodity Cutsheet SKUs
|
||||||||||||||
|
||||||||||||||
Purchasing
|
|
Grade
|
*****
|
Description
|
Brightness
|
Basis Wt
|
Sheet Size
|
Sheets / Ream
|
Rms / Ctn
|
Premium Ream-Wrap
|
Post Consumer Content
|
*****
|
*****
|
|
|
|
|
|
|
Boise FIREWORX™ (Pastel)
|
|
|
|
|
|
|
|
||
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise FIREWORX™ (Pastel)
|
N/A
|
20
|
8.5 x 11
|
500
|
10
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise FIREWORX™ (Pastel)
|
N/A
|
20
|
8.5 x 11 - 3HP
|
500
|
10
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise FIREWORX™ (Pastel)
|
N/A
|
20
|
8.5 x 14
|
500
|
10
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise FIREWORX™ (Pastel)
|
N/A
|
20
|
11 x 17
|
500
|
5
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise FIREWORX™ (Pastel)
|
N/A
|
24
|
8.5 x 11
|
500
|
10
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise FIREWORX™ (Pastel) Cover
|
92-N/A
|
65
|
8.5 x 11
|
250
|
10
|
—
|
30%
|
*****
|
*****
|
|
|
|
|
|
Boise FIREWORX™ (Bright)
|
|
|
|
|
|
|
|
||
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise FIREWORX™ (Bright)
|
N/A
|
24
|
8.5 x 11
|
500
|
10
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise FIREWORX™ (Bright)
|
N/A
|
24
|
11 x 17
|
500
|
5
|
—
|
30%
|
*****
|
*****
|
OfficeMax
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Boise FIREWORX™ (Bright) Cover
|
92-N/A
|
65
|
8.5 x 11
|
250
|
10
|
—
|
30%
|
*****
|
*****
|
Exhibit B - Commodity and Non-Commodity Cutsheet SKUs
|
||||||||||||||
|
||||||||||||||
Purchasing
|
|
Grade
|
*****
|
Description
|
Brightness
|
Basis Wt
|
Sheet Size
|
Sheets / Ream
|
Rms / Ctn
|
Premium Ream-Wrap
|
Post
Consumer
Content
|
*****
|
*****
|
|
|
|
|
|
|
OfficeMax Laser
|
|
|
|
|
|
|
|
||
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax Laser
|
96
|
24
|
8.5 x 11
|
500
|
5
|
Poly
|
—
|
*****
|
*****
|
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax 30% Recycled Laser
|
96
|
24
|
8.5 x 11
|
500
|
5
|
—
|
30%
|
*****
|
*****
|
|
|
|
|
|
OfficeMax Premium Laser
|
|
|
|
|
|
|
|
||
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax Premium Laser
|
96
|
28
|
8.5 x 11
|
500
|
4
|
Poly
|
—
|
*****
|
*****
|
|
|
|
|
|
OfficeMax Premium Color Copy
|
|
|
|
|
|
|
|
||
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax Premium Color Copy
|
98
|
28
|
8.5 x 11
|
500
|
4
|
Poly
|
—
|
*****
|
*****
|
|
|
|
|
|
OfficeMax 30% Recycled Pastels
|
|
|
|
|
|
|
|
||
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax 30% Recycled Pastels
|
N/A
|
20
|
8.5 x 11
|
500
|
5
|
Poly
|
30%
|
*****
|
*****
|
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax 30% Recycled Pastels
|
N/A
|
20
|
8.5 x 14
|
500
|
5
|
Poly
|
30%
|
*****
|
*****
|
|
|
|
|
|
OfficeMax Assortment Packs
|
|
|
|
|
|
|
|
||
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax 30% Recycled Assorted Pastel
|
Assortment
|
20
|
8.5 x 11
|
400
|
6
|
Poly
|
30%
|
*****
|
*****
|
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax Assorted Brights
|
Assortment
|
24
|
8.5 x 11
|
500
|
6
|
Poly
|
—
|
*****
|
*****
|
|
|
|
|
|
OfficeMax Heavy Weights
|
|
|
|
|
|
|
|
||
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax Index
|
92
|
90
|
8.5 x 11
|
250
|
5
|
Poly
|
—
|
*****
|
*****
|
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax Index (white and pastels)
|
92 - N/A
|
110
|
8.5 x 11
|
250
|
5
|
Poly
|
—
|
*****
|
*****
|
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax Bright White Cover
|
96
|
65
|
8.5 x 11
|
100
|
10
|
Poly
|
—
|
*****
|
*****
|
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax Card Stock (white and pastels)
|
92 - N/A
|
67
|
8.5 x 11
|
250
|
5
|
Poly
|
—
|
*****
|
*****
|
OfficeMax
|
—
|
|
NON - COMM
|
*****
|
OfficeMax Card Stock Assortment Pack
|
N/A
|
67
|
8.5 x 11
|
250
|
5
|
Poly
|
—
|
*****
|
*****
|
Exhibit B - Commodity and Non-Commodity Cutsheet SKUs
|
||||||||||||||
|
||||||||||||||
Purchasing
|
|
Grade
|
*****
|
Description
|
Brightness
|
Basis Wt
|
Sheet Size
|
Sheets / Ream
|
Rms / Ctn
|
Premium Ream-Wrap
|
Post
Consumer
Content
|
*****
|
*****
|
|
|
|
|
|
|
Grand&Toy Premium Laser
|
|
|
|
|
|
|
|
||
—
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Grand&Toy Premium Laser
|
96
|
24
|
8.5 x 11
|
500
|
8
|
Poly
|
—
|
*****
|
*****
|
—
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Grand&Toy Premium Laser 30% RC
|
96
|
24
|
8.5 x 11
|
500
|
8
|
—
|
30%
|
*****
|
*****
|
|
|
|
|
|
Grand&Toy Colour Copier Paper
|
|
|
|
|
|
|
|
||
—
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Grand&Toy Colour Copier Paper
|
98
|
28
|
8.5 x 11
|
500
|
8
|
—
|
—
|
*****
|
*****
|
|
|
|
|
|
Grand&Toy Rainbow packs
|
|
|
|
|
|
|
|
||
—
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Grand&Toy Rainbow pack (Brites)
|
N/A
|
24
|
8.5 x 11
|
400
|
5
|
Poly
|
—
|
*****
|
*****
|
—
|
Grand&Toy
|
|
NON - COMM
|
*****
|
Grand&Toy Rainbow pack (Pastels)
|
N/A
|
20
|
8.5 x 11
|
400
|
6
|
Poly
|
—
|
*****
|
*****
|
To Boise:
|
Boise White Paper, L.L.C.
|
|
Attention
President and Chief Executive Officer
|
|
1111 West Jefferson Street
|
|
PO Box 990050
|
|
Boise, Idaho 83799-0050
|
|
|
With a copy to:
|
Boise White Paper, L.L.C.
|
|
Attention
General Counsel
|
|
1111 West Jefferson Street
|
|
PO Box 990050
|
|
Boise, Idaho 83799-0050
|
|
|
To OfficeMax:
|
OfficeMax Incorporated
|
|
Attention
President and Chief Executive Officer
|
|
263 Shuman Blvd.
|
|
Naperville, IL 60563
|
|
|
With a copy to:
|
OfficeMax Incorporated
|
|
Attention
General Counsel
|
|
263 Shuman Blvd.
|
|
Naperville, IL 60563
|
OFFICEMAX INCORPORATED
|
|
By:
/s/ Ron Lalla
|
Name: Ron Lalla
|
Title: EVP, Chief Merchandising Officer
|
|
|
BOISE WHITE PAPER, L.L.C.
|
|
By:
/s/ Judith M. Lassa
|
Name: Judith M. Lassa
|
Title: EVP, Chief Operating Officer
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Boise Inc. and BZ Intermediate Holdings LLC;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report;
|
4.
|
The registrants' other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrants and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrants' disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrants' internal control over financial reporting that occurred during the registrants' most recent fiscal quarter (the registrants' fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants' internal control over financial reporting; and
|
5.
|
The registrants' other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants' auditors and the audit committee of the registrants' board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants' ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants' internal control over financial reporting.
|
/s/ ALEXANDER TOELDTE
|
|
/s/ ALEXANDER TOELDTE
|
|
Alexander Toeldte
Chief Executive Officer
Boise Inc.
|
|
Alexander Toeldte
Chief Executive Officer
BZ Intermediate Holdings LLC
|
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q of Boise Inc. and BZ Intermediate Holdings LLC;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report;
|
4.
|
The registrants' other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrants and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrants' disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrants' internal control over financial reporting that occurred during the registrants' most recent fiscal quarter (the registrants' fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants' internal control over financial reporting; and
|
5.
|
The registrants' other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants' auditors and the audit committee of the registrants' board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants' ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants' internal control over financial reporting.
|
/s/ SAMUEL K. COTTERELL
|
|
/s/ SAMUEL K. COTTERELL
|
|
Samuel K. Cotterell
Chief Financial Officer
Boise Inc.
|
|
Samuel K. Cotterell
Chief Financial Officer
BZ Intermediate Holdings LLC
|
|
(i)
|
The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
|
(ii)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Boise Inc. and BZ Intermediate Holdings LLC.
|
/s/ ALEXANDER TOELDTE
|
|
/s/ ALEXANDER TOELDTE
|
Alexander Toeldte
|
|
Alexander Toeldte
|
Chief Executive Officer
|
|
Chief Executive Officer
|
Boise Inc.
|
|
BZ Intermediate Holdings LLC
|
(i)
|
The Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and
|
(ii)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of Boise Inc. and BZ Intermediate Holdings LLC.
|
/s/ SAMUEL K. COTTERELL
|
|
/s/ SAMUEL K. COTTERELL
|
Samuel K. Cotterell
|
|
Samuel K. Cotterell
|
Chief Financial Officer
|
|
Chief Financial Officer
|
Boise Inc.
|
|
BZ Intermediate Holdings LLC
|