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Segment Information | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Segment Information | NOTE 5. SEGMENT INFORMATION Our businesses are organized into three reportable operating segments: Timberlands, Wood Products and Real Estate. Management activities in the Timberlands segment include planting and harvesting trees and building and maintaining roads. The Timberlands segment also generates revenues from non-timber resources such as hunting leases, recreation permits and leases, mineral rights contracts, oil and gas royalties, biomass production and carbon sequestration. The Wood Products segment manufactures and markets lumber and plywood. The Real Estate segment includes the sale of land holdings deemed non-strategic or identified as having higher and better use alternatives, master planned community development and a country club. The reportable segments follow the same accounting policies used for our Consolidated Financial Statements, with the exception of the valuation of inventories which are reported using the average cost method for purposes of reporting segment results. For additional information see Note 1: Summary of Significant Accounting Policies. Management primarily evaluates the performance of its segments and allocates resources to them based upon Adjusted EBITDDA. EBITDDA is calculated as net income (loss) before interest expense, income taxes, basis of real estate sold, depreciation, depletion and amortization. Adjusted EBITDDA further excludes certain specific items that are considered to hinder comparison of the performance of our businesses either year-on-year or with other businesses. Management uses Adjusted EBITDDA to compare the operating performance of segments on a consistent basis and to evaluate the performance and effectiveness of each segment’s operational strategies. Our calculation of Adjusted EBITDDA may not be comparable to that reported by other companies. The following table summarizes information for each of the company’s reportable segments and includes a reconciliation of Total Adjusted EBITDDA to income before income taxes. Corporate information is included to reconcile segment data to the Consolidated Financial Statements.
|  | Year Ended December 31, |
(in thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Revenues: |  |  |  |  |  |  |  |  |  |  |  |
Timberlands |  | $ | 322,693 |  |  | $ | 354,950 |  |  | $ | 278,199 |
Wood Products |  |  | 540,408 |  |  |  | 680,931 |  |  |  | 441,157 |
Real Estate |  |  | 78,872 |  |  |  | 54,566 |  |  |  | 30,655 |
|  |  | 941,973 |  |  |  | 1,090,447 |  |  |  | 750,011 |
Intersegment Timberlands revenues1 |  |  | (114,875 | ) |  |  | (115,868 | ) |  |  | (71,416 | )
Total consolidated revenues |  | $ | 827,098 |  |  | $ | 974,579 |  |  | $ | 678,595 |
Adjusted EBITDDA: |  |  |  |  |  |  |  |  |  |  |  |
Timberlands |  | $ | 133,987 |  |  | $ | 169,834 |  |  | $ | 126,707 |
Wood Products |  |  | 12,901 |  |  |  | 130,583 |  |  |  | 80,624 |
Real Estate |  |  | 62,650 |  |  |  | 40,304 |  |  |  | 25,720 |
Corporate |  |  | (36,257 | ) |  |  | (37,785 | ) |  |  | (34,302 | )
Eliminations and adjustments |  |  | 5,662 |  |  |  | (5,743 | ) |  |  | (2,992 | )
Total Adjusted EBITDDA |  |  | 178,943 |  |  |  | 297,193 |  |  |  | 195,757 |
Basis of real estate sold |  |  | (20,554 | ) |  |  | (16,698 | ) |  |  | (6,827 | )
Depreciation, depletion and amortization |  |  | (70,417 | ) |  |  | (70,848 | ) |  |  | (28,432 | )
Interest expense, net2 |  |  | (30,361 | ) |  |  | (35,227 | ) |  |  | (27,049 | )
Loss on extinguishment of debt |  |  | (5,512 | ) |  |  | - |  |  |  | - |
Non-operating pension and other postretirement employee benefits |  |  | (3,739 | ) |  |  | (7,648 | ) |  |  | (6,384 | )
Loss on fixed assets |  |  | (865 | ) |  |  | (725 | ) |  |  | (204 | )
Gain on sale of facility |  |  | 9,176 |  |  |  | — |  |  |  | — |
Inventory purchase price adjustment in cost of goods sold3 |  |  | — |  |  |  | (1,849 | ) |  |  | — |
Deltic merger-related costs4 |  |  | — |  |  |  | (22,119 | ) |  |  | (3,409 | )
Environmental charges for Avery Landing |  |  | — |  |  |  | — |  |  |  | (4,978 | )
Income before income taxes |  | $ | 56,671 |  |  | $ | 142,079 |  |  | $ | 118,474 |
Depreciation, depletion and amortization: |  |  |  |  |  |  |  |  |  |  |  |
Timberlands |  | $ | 46,601 |  |  | $ | 48,201 |  |  | $ | 20,476 |
Wood Products |  |  | 22,059 |  |  |  | 21,416 |  |  |  | 7,347 |
Real Estate |  |  | 678 |  |  |  | 418 |  |  |  | 2 |
Corporate |  |  | 1,079 |  |  |  | 813 |  |  |  | 607 |
|  |  | 70,417 |  |  |  | 70,848 |  |  |  | 28,432 |
Bond discount and deferred loan fees2 |  |  | 1,688 |  |  |  | 2,313 |  |  |  | 1,480 |
Total depreciation, depletion and amortization |  | $ | 72,105 |  |  | $ | 73,161 |  |  | $ | 29,912 |
Basis of real estate sold: |  |  |  |  |  |  |  |  |  |  |  |
Real Estate |  | $ | 20,749 |  |  | $ | 16,954 |  |  | $ | 7,114 |
Elimination and adjustments |  |  | (195 | ) |  |  | (256 | ) |  |  | (287 | )
Total basis of real estate sold |  | $ | 20,554 |  |  | $ | 16,698 |  |  | $ | 6,827 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Timberlands5 |  | $ | 1,655,407 |  |  | $ | 1,693,162 |  |  | $ | 669,288 |
Wood Products |  |  | 398,465 |  |  |  | 456,306 |  |  |  | 154,479 |
Real Estate6 |  |  | 87,421 |  |  |  | 93,208 |  |  |  | 952 |
|  |  | 2,141,293 |  |  |  | 2,242,676 |  |  |  | 824,719 |
Corporate |  |  | 93,766 |  |  |  | 83,176 |  |  |  | 128,360 |
Total consolidated assets |  | $ | 2,235,059 |  |  | $ | 2,325,852 |  |  | $ | 953,079 |
Capital Expenditures:7 |  |  |  |  |  |  |  |  |  |  |  |
Timberlands |  | $ | 17,500 |  |  | $ | 17,232 |  |  | $ | 15,120 |
Wood Products |  |  | 37,232 |  |  |  | 27,341 |  |  |  | 10,723 |
Real Estate8 |  |  | 8,053 |  |  |  | 5,987 |  |  |  | 87 |
|  |  | 62,785 |  |  |  | 50,560 |  |  |  | 25,930 |
Corporate |  |  | 1,317 |  |  |  | 1,747 |  |  |  | 2,132 |
Total capital expenditures |  | $ | 64,102 |  |  | $ | 52,307 |  |  | $ | 28,062 |
1 | Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment.
2 | Bond discounts and deferred loan fees are reported within interest expense on the Consolidated Statements of Income.
3 | The effect of costs of goods sold for fair value adjustments to the carrying amounts of inventory acquired in business combinations.
See Note 2: Merger with Deltic.
4 | For integration and restructuring costs related to the merger with Deltic see Note 2: Merger with Deltic.
5 | We do not report rural real estate separate from Timberlands as we do not report these assets separately to management.
6 | Real Estate assets primarily consist of real estate development acquired with the Deltic merger.
7 | Does not include the acquisition of timber and timberlands, all of which were acquired by the Timberlands segment.
8 | Real Estate capital expenditures include development expenditures of $7.3 million, $5.0 million and $0 for the year ended December 31, 2019, 2018 and 2017, respectively.
All of our timberlands, wood products facilities and other assets are located within the continental United States. Geographic information regarding our revenues for the years ended December 31 is as follows:
(in thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
United States |  | $ | 825,105 |  |  | $ | 972,457 |  |  | $ | 676,956 |
Canada |  |  | 128 |  |  |  | 624 |  |  |  | 481 |
Mexico |  |  | 1,865 |  |  |  | 1,498 |  |  |  | 1,158 |
Total consolidated revenues |  | $ | 827,098 |  |  | $ | 974,579 |  |  | $ | 678,595 |
No customers represented more than 10% of our consolidated revenues during 2019 or 2018. One customer accounted for slightly more than 10% of our total consolidated revenues during 2017.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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