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Segment Information
 9 Months Ended
Sep. 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 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 before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements.

 

 

 

Three Months Ended September 30,

 

 

 

 

Nine Months Ended September 30,

 

(in thousands)

 

2020

 

 

2019

 

 

 

 

2020

 

 

 

 

2019

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

116,985

 

 

$

98,809

 

 

 

 

$

266,755

 

 

 

 

$

233,848

 

Wood Products

 

 

218,291

 

 

 

143,643

 

 

 

 

 

489,507

 

 

 

 

 

413,979

 

Real Estate

 

 

18,151

 

 

 

18,863

 

 

 

 

 

42,225

 

 

 

 

 

61,459

 

 

 

 

353,427

 

 

 

261,315

 

 

 

 

 

798,487

 

 

 

 

 

709,286

 

Intersegment Timberlands revenues1

 

 

(40,381

)

 

 

(35,013

)

 

 

 

 

(95,006

)

 

 

 

 

(85,687

)

Consolidated revenues

 

$

313,046

 

 

$

226,302

 

 

 

 

$

703,481

 

 

 

 

$

623,599

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDDA:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

59,649

 

 

$

42,996

 

 

 

 

$

120,290

 

 

 

 

$

95,977

 

Wood Products

 

 

81,644

 

 

 

5,903

 

 

 

 

 

105,780

 

 

 

 

 

11,058

 

Real Estate

 

 

13,466

 

 

 

14,678

 

 

 

 

 

30,062

 

 

 

 

 

48,697

 

Corporate

 

 

(15,361

)

 

 

(6,930

)

 

 

 

 

(34,567

)

 

 

 

 

(26,930

)

Eliminations and adjustments

 

 

(4,012

)

 

 

(1,635

)

 

 

 

 

(3,235

)

 

 

 

 

3,542

 

Total Adjusted EBITDDA

 

 

135,386

 

 

 

55,012

 

 

 

 

 

218,330

 

 

 

 

 

132,344

 

Interest expense, net2

 

 

(8,557

)

 

 

(8,475

)

 

 

 

 

(20,594

)

 

 

 

 

(21,821

)

Depreciation, depletion and amortization

 

 

(20,187

)

 

 

(18,786

)

 

 

 

 

(56,590

)

 

 

 

 

(51,310

)

Basis of real estate sold

 

 

(5,249

)

 

 

(5,228

)

 

 

 

 

(14,440

)

 

 

 

 

(14,211

)

Loss on extinguishment of debt

 

 

—

 

 

 

—

 

 

 

 

 

—

 

 

 

 

 

(5,512

)

Pension settlement charge

 

 

—

 

 

 

—

 

 

 

 

 

(42,988

)

 

 

 

 

—

 

Non-operating pension and other postretirement employee benefits

 

 

(3,557

)

 

 

(935

)

 

 

 

 

(10,670

)

 

 

 

 

(2,804

)

Gain on sale of facility

 

 

—

 

 

 

—

 

 

 

 

 

—

 

 

 

 

 

9,176

 

Gain on disposal of fixed assets

 

 

11

 

 

 

198

 

 

 

 

 

196

 

 

 

 

 

260

 

Income before income taxes

 

$

97,847

 

 

$

21,786

 

 

 

 

$

73,244

 

 

 

 

$

46,122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

13,821

 

 

$

12,627

 

 

 

 

$

37,978

 

 

 

 

$

33,361

 

Wood Products

 

 

5,983

 

 

 

5,763

 

 

 

 

 

17,411

 

 

 

 

 

16,666

 

Real Estate

 

 

149

 

 

 

152

 

 

 

 

 

465

 

 

 

 

 

508

 

Corporate

 

 

234

 

 

 

244

 

 

 

 

 

736

 

 

 

 

 

775

 

 

 

 

20,187

 

 

 

18,786

 

 

 

 

 

56,590

 

 

 

 

 

51,310

 

Bond discounts and deferred loan fees2

 

 

407

 

 

 

392

 

 

 

 

 

1,219

 

 

 

 

 

1,279

 

Total depreciation, depletion and amortization

 

$

20,594

 

 

$

19,178

 

 

 

 

$

57,809

 

 

 

 

$

52,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basis of real estate sold:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate

 

$

5,257

 

 

$

5,283

 

 

 

 

$

14,973

 

 

 

 

$

14,326

 

Eliminations and adjustments

 

 

(8

)

 

 

(55

)

 

 

 

 

(533

)

 

 

 

 

(115

)

Total basis of real estate sold

 

$

5,249

 

 

$

5,228

 

 

 

 

$

14,440

 

 

 

 

$

14,211

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.