Segment Information

3 Months Ended

Mar. 31, 2020

NOTE 5. SEGMENT INFORMATION

Our businesses are organized into three reportable operating segments: Timberlands, Wood Products and Real Estate. The Timberlands segment includes 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 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 Condensed 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.

Management primarily evaluates the performance of its segments and allocates resources to them based upon Adjusted EBITDDA. EBITDDA is calculated as net (loss) income 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 our 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 (loss) income before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements.

	Three Months Ended March 31,
(in thousands)	2020			2019
Revenues:
Timberlands	$	82,425		$	68,158
Wood Products		145,000			132,306
Real Estate		10,969			6,164
		238,394			206,628
Intersegment Timberlands revenues¹		(29,514	)		(24,912	)
Consolidated revenues	$	208,880		$	181,716

Adjusted EBITDDA:
Timberlands	$	34,982		$	26,850
Wood Products		13,229			7,226
Real Estate		7,340			2,703
Corporate		(8,672	)		(10,654	)
Eliminations and adjustments		692			2,127
Total Adjusted EBITDDA		47,571			28,252
Basis of real estate sold		(6,498	)		(1,556	)
Depreciation, depletion and amortization		(18,638	)		(15,797	)
Interest expense, net²		(3,698	)		(5,464	)
Loss on extinguishment of debt		—			(5,512	)
Pension settlement charge		(42,988	)		—
Non-operating pension and other postretirement employee benefits		(3,635	)		(980	)
Gain on disposal of fixed assets		192			32
Gain on sale of facility		—			9,176
(Loss) income before income taxes	$	(27,694	)	$	8,151

Depreciation, depletion and amortization:
Timberlands	$	12,591		$	10,265
Wood Products		5,630			5,042
Real Estate		160			209
Corporate		257			281
		18,638			15,797
Bond discounts and deferred loan fees²		406			477
Total depreciation, depletion and amortization	$	19,044		$	16,274

Basis of real estate sold:
Real Estate	$	6,504		$	1,588
Eliminations and adjustments		(6	)		(32	)
Total basis of real estate sold	$	6,498		$	1,556

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, net on the Condensed Consolidated Statements of Operations.}