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Segment Information
 6 Months Ended
Jun. 30, 2020
Segment Reporting [Abstract]  
Segment Information

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.

Our Timberlands segment supplies our Wood Products segment with a portion of its wood fiber needs. These intersegment revenues are based on prevailing market prices and typically represent a sizeable portion of the Timberlands segment’s total revenues. Our other segments generally do not generate intersegment revenues. These intercompany transactions are eliminated in consolidation.

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 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 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 income (loss) before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements.

 

 

 

Three Months Ended June 30,

 

 

 

 

Six Months Ended June 30,

 

(in thousands)

 

2020

 

 

2019

 

 

 

 

2020

 

 

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

67,345

 

 

$

66,881

 

 

 

 

$

149,770

 

 

 

 

$

135,039

 

Wood Products

 

 

126,216

 

 

 

138,030

 

 

 

 

 

271,216

 

 

 

 

 

270,336

 

Real Estate

 

 

13,105

 

 

 

36,432

 

 

 

 

 

24,074

 

 

 

 

 

42,596

 

 

 

 

206,666

 

 

 

241,343

 

 

 

 

 

445,060

 

 

 

 

 

447,971

 

Intersegment Timberlands revenues1

 

 

(25,111

)

 

 

(25,762

)

 

 

 

 

(54,625

)

 

 

 

 

(50,674

)

Consolidated revenues

 

$

181,555

 

 

$

215,581

 

 

 

 

$

390,435

 

 

 

 

$

397,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

25,659

 

 

$

26,131

 

 

 

 

$

60,641

 

 

 

 

$

52,981

 

Wood Products

 

 

10,907

 

 

 

(2,071

)

 

 

 

 

24,136

 

 

 

 

 

5,155

 

Real Estate

 

 

9,256

 

 

 

31,316

 

 

 

 

 

16,596

 

 

 

 

 

34,019

 

Corporate

 

 

(10,534

)

 

 

(9,346

)

 

 

 

 

(19,206

)

 

 

 

 

(20,000

)

Eliminations and adjustments

 

 

85

 

 

 

3,050

 

 

 

 

 

777

 

 

 

 

 

5,177

 

Total Adjusted EBITDDA

 

 

35,373

 

 

 

49,080

 

 

 

 

 

82,944

 

 

 

 

 

77,332

 

Interest expense, net2

 

 

(8,339

)

 

 

(7,882

)

 

 

 

 

(12,037

)

 

 

 

 

(13,346

)

Depreciation, depletion and amortization

 

 

(17,765

)

 

 

(16,727

)

 

 

 

 

(36,403

)

 

 

 

 

(32,524

)

Basis of real estate sold

 

 

(2,693

)

 

 

(7,427

)

 

 

 

 

(9,191

)

 

 

 

 

(8,983

)

Loss on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

 

 

—

 

 

 

 

 

(5,512

)

Pension settlement charge

 

 

—

 

 

 

—

 

 

 

 

 

(42,988

)

 

 

 

 

—

 

Non-operating pension and other postretirement employee benefits

 

 

(3,478

)

 

 

(889

)

 

 

 

 

(7,113

)

 

 

 

 

(1,869

)

Gain on sale of facility

 

 

—

 

 

 

—

 

 

 

 

 

—

 

 

 

 

 

9,176

 

(Loss) gain on disposal of fixed assets

 

 

(7

)

 

 

30

 

 

 

 

 

185

 

 

 

 

 

62

 

Income (loss) before income taxes

 

$

3,091

 

 

$

16,185

 

 

 

 

$

(24,603

)

 

 

 

$

24,336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

11,566

 

 

$

10,469

 

 

 

 

$

24,157

 

 

 

 

$

20,734

 

Wood Products

 

 

5,798

 

 

 

5,861

 

 

 

 

 

11,428

 

 

 

 

 

10,903

 

Real Estate

 

 

156

 

 

 

147

 

 

 

 

 

316

 

 

 

 

 

356

 

Corporate

 

 

245

 

 

 

250

 

 

 

 

 

502

 

 

 

 

 

531

 

 

 

 

17,765

 

 

 

16,727

 

 

 

 

 

36,403

 

 

 

 

 

32,524

 

Bond discounts and deferred loan fees2

 

 

406

 

 

 

410

 

 

 

 

 

812

 

 

 

 

 

887

 

Total depreciation, depletion and amortization

 

$

18,171

 

 

$

17,137

 

 

 

 

$

37,215

 

 

 

 

$

33,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis of real estate sold:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate

 

$

3,212

 

 

$

7,455

 

 

 

 

$

9,716

 

 

 

 

$

9,043

 

Eliminations and adjustments

 

 

(519

)

 

 

(28

)

 

 

 

 

(525

)

 

 

 

 

(60

)

Total basis of real estate sold

 

$

2,693

 

 

$

7,427

 

 

 

 

$

9,191

 

 

 

 

$

8,983

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.