Segment and Product Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment and Product Information

15. Segment and Product Information

We offer an integrated solution to our customers providing manufacturing, supply, and installation of a full range of structural and related building products.  We provide a wide variety of building products and services directly to homebuilder customers. We manufacture floor trusses, roof trusses, wall panels, stairs, millwork, windows, and doors. We also provide a full range of construction services. These product and service offerings are distributed across 400 locations operating in 40 states across the United States, which have been reorganized into nine geographical regions following the ProBuild acquisition.  Centralized financial and operational oversight, including resource allocation and assessment of performance on an income (loss) from continuing operations before income taxes basis, is performed by our CEO, whom we have determined to be our chief operating decision maker (“CODM”).    

As a result of the reorganization following the ProBuild acquisition, the Company has nine operating segments aligned with its nine geographical regions (Regions 1 through 9). While all of our operating segments have similar nature of products, distribution methods and customers, certain of our operating segments have been aggregated due to also containing similar economic characteristics, resulting in the following composition of reportable segments:

• Regions 1 and 2 have been aggregated to form the “Northeast” reportable segment

• Regions 3 and 5 have been aggregated to form the “Southeast” reportable segment  

• Regions 4 and 6 have been aggregated to form the “South” reportable segment

• Region 7, 8 and 9 have been aggregated to form the “West” reportable segment

In addition to our reportable segments, our consolidated results include corporate overhead, other various operating activities that are not internally allocated to a geographical region nor separately reported to the CODM, and certain reconciling items primarily related to allocations of corporate overhead and rent expense, which have collectively been presented as “All Other”.  The accounting policies of the segments are consistent with those described in Note 2, except for noted reconciling items.  

The following tables present Net sales, Income (loss) before income taxes and certain other measures for the reportable segments, reconciled to consolidated total operations, for the years ended December 31, (in thousands):

	2016
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) before income taxes
Northeast	$	1,204,099	$	18,220	$	18,660	$	35,356
Southeast		1,367,933		11,384		19,956		37,158
South		1,704,753		22,139		22,331		69,846
West		1,939,206		33,775		27,143		72,649
Total reportable segments		6,215,991		85,518		88,090		215,009
All other		151,293		24,275		126,577		(193,340	)
Total consolidated	$	6,367,284	$	109,793	$	214,667	$	21,669
	2015
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) before income taxes
Northeast	$	626,985	$	4,201	$	7,508	$	28,862
Southeast		917,022		5,296		14,598		14,607
South		1,073,240		10,649		12,707		50,878
West		786,476		5,824		6,118		35,170
Total reportable segments		3,403,723		25,970		40,931		129,517
All other		160,702		32,310		68,268		(147,961	)
Total consolidated	$	3,564,425	$	58,280	$	109,199	$	(18,444)

	2014
Reportable segments	Net Sales		Depreciation & Amortization		Interest		Income (loss) before income taxes
Northeast	$	229,998	$	1,068	$	3,634	$	3,464
Southeast		672,059		2,743		11,925		5,465
South		558,446		2,621		7,666		17,804
West		—		—		—		—
Total reportable segments		1,460,503		6,432		23,225		26,733
All other		143,593		3,087		7,124		(7,472	)
Total consolidated	$	1,604,096	$	9,519	$	30,349	$	19,261

Asset information by segment is not reported internally or otherwise reviewed by the CODM nor does the company earn revenues or have long-lived assets located in foreign countries.  The Company’s net sales by product category for the periods indicated were as follows (in thousands):

Sales by product category were as follows for the years ended December 31:

	2016		2015		2014
	(In thousands)
Lumber & lumber sheet goods	$	2,131,394	$	1,129,684	$	535,279
Windows, doors & millwork		1,286,151		818,131		446,433
Manufactured products		1,097,665		635,338		311,994
Gypsum, roofing & insulation		520,007		264,894		61,114
Siding, metal & concrete products		622,344		319,618		81,894
Other building & product services		709,723		396,760		167,382
Total sales	$	6,367,284	$	3,564,425	$	1,604,096

In the above presentation of the Company’s net sales by product category, prior periods have been revised to reflect a re-categorization of certain product sales within the respective product categories to be consistent with how management views the business after further refinement from the ongoing evaluations following the ProBuild acquisition. Install labor sales are reflected in the “Other building products & services” category.