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Segment Information | 12 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment Information | NOTE 3. SEGMENT INFORMATION Our operations are organized into three reportable 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 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. Sales outside of the United States are inconsequential and no single customer represented more than 10% of our consolidated revenues during 2020, 2019 or 2018. 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 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 regarding valuation of inventories and our revenue recognition policy see Note 1: Summary of Significant Accounting Policies. The following table represents our revenues by major product:
|  | Year Ended December 31, |
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Timberlands |  |  |  |  |  |  |  |  |  |  |  |
Northern region |  |  |  |  |  |  |  |  |  |  |  |
Sawlogs |  | $ | 213,030 |  |  | $ | 161,570 |  |  | $ | 205,977 |
Pulpwood |  |  | 4,502 |  |  |  | 5,767 |  |  |  | 5,996 |
Stumpage |  |  | 316 |  |  |  | 109 |  |  |  | 176 |
Other |  |  | 1,581 |  |  |  | 1,970 |  |  |  | 1,801 |
Total Northern revenues |  |  | 219,429 |  |  |  | 169,416 |  |  |  | 213,950 |
Southern region |  |  |  |  |  |  |  |  |  |  |  |
Sawlogs |  |  | 93,828 |  |  |  | 88,048 |  |  |  | 81,460 |
Pulpwood |  |  | 49,084 |  |  |  | 53,315 |  |  |  | 48,585 |
Stumpage |  |  | 4,077 |  |  |  | 1,666 |  |  |  | 2,434 |
Other |  |  | 10,101 |  |  |  | 10,248 |  |  |  | 8,521 |
Total Southern revenues |  |  | 157,090 |  |  |  | 153,277 |  |  |  | 141,000 |
Total Timberlands revenues |  |  | 376,519 |  |  |  | 322,693 |  |  |  | 354,950 |
Wood Products |  |  |  |  |  |  |  |  |  |  |  |
Lumber |  |  | 573,069 |  |  |  | 396,648 |  |  |  | 464,180 |
Residuals and Panels |  |  | 125,336 |  |  |  | 143,760 |  |  |  | 216,751 |
Total Wood Products revenues |  |  | 698,405 |  |  |  | 540,408 |  |  |  | 680,931 |
Real Estate |  |  |  |  |  |  |  |  |  |  |  |
Rural real estate |  |  | 81,979 |  |  |  | 49,675 |  |  |  | 36,024 |
Development real estate |  |  | 14,979 |  |  |  | 22,363 |  |  |  | 12,852 |
Other |  |  | 7,458 |  |  |  | 6,834 |  |  |  | 5,690 |
Total Real Estate revenues |  |  | 104,416 |  |  |  | 78,872 |  |  |  | 54,566 |
Total segment revenues |  |  | 1,179,340 |  |  |  | 941,973 |  |  |  | 1,090,447 |
Intersegment Timberlands revenues1 |  |  | (138,410 | ) |  |  | (114,875 | ) |  |  | (115,868 | )
Total consolidated revenues |  | $ | 1,040,930 |  |  | $ | 827,098 |  |  | $ | 974,579 |
1 | Intersegment revenues represent logs sold by our Timberlands segment to the Wood Products segment.
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 Consolidated Financial Statements.
|  | Year Ended December 31, |
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Adjusted EBITDDA: |  |  |  |  |  |  |  |  |  |  |  |
Timberlands |  | $ | 182,802 |  |  | $ | 133,987 |  |  | $ | 169,834 |
Wood Products |  |  | 176,095 |  |  |  | 12,901 |  |  |  | 130,583 |
Real Estate |  |  | 86,476 |  |  |  | 62,650 |  |  |  | 40,304 |
Corporate |  |  | (48,451 | ) |  |  | (36,257 | ) |  |  | (37,785 | )
Eliminations and adjustments |  |  | (14,694 | ) |  |  | 5,662 |  |  |  | (5,743 | )
Total Adjusted EBITDDA |  |  | 382,228 |  |  |  | 178,943 |  |  |  | 297,193 |
Interest expense, net1 |  |  | (29,463 | ) |  |  | (30,361 | ) |  |  | (35,227 | )
Depreciation, depletion and amortization |  |  | (76,261 | ) |  |  | (70,417 | ) |  |  | (70,848 | )
Basis of real estate sold |  |  | (25,348 | ) |  |  | (20,554 | ) |  |  | (16,698 | )
Loss on extinguishment of debt |  |  | — |  |  |  | (5,512 | ) |  |  | — |
Pension settlement charge |  |  | (42,988 | ) |  |  | — |  |  |  | — |
Non-operating pension and other postretirement employee benefits |  |  | (14,226 | ) |  |  | (3,739 | ) |  |  | (7,648 | )
Gain (loss) on fixed assets |  |  | 11 |  |  |  | (865 | ) |  |  | (725 | )
Gain on sale of facility |  |  | — |  |  |  | 9,176 |  |  |  | — |
Inventory purchase price adjustment in cost of goods sold2 |  |  | — |  |  |  | — |  |  |  | (1,849 | )
Deltic merger-related costs3 |  |  | — |  |  |  | — |  |  |  | (22,119 | )
Income before income taxes |  | $ | 193,953 |  |  | $ | 56,671 |  |  | $ | 142,079 |
1 | Includes amortization of bond discounts and deferred loan fees.
2 | The effect of costs of goods sold for fair value adjustments to the carrying amounts of inventory acquired in business combinations.
See Note 2: Mergers and Divestitures.
3 | See Note 2: Mergers and Divestitures.
The following table summarizes additional reportable segment financial information:
|  | Year Ended December 31, |
(in thousands) |  | 2020 |  |  | 2019 |  |  | 2018 |
Depreciation, depletion and amortization: |  |  |  |  |  |  |  |  |  |  |  |
Timberlands |  | $ | 51,047 |  |  | $ | 46,601 |  |  | $ | 48,201 |
Wood Products |  |  | 23,611 |  |  |  | 22,059 |  |  |  | 21,416 |
Real Estate |  |  | 620 |  |  |  | 678 |  |  |  | 418 |
Corporate |  |  | 983 |  |  |  | 1,079 |  |  |  | 813 |
|  |  | 76,261 |  |  |  | 70,417 |  |  |  | 70,848 |
Bond discount and deferred loan fees1 |  |  | 1,624 |  |  |  | 1,688 |  |  |  | 2,313 |
Total depreciation, depletion and amortization |  | $ | 77,885 |  |  | $ | 72,105 |  |  | $ | 73,161 |
Basis of real estate sold: |  |  |  |  |  |  |  |  |  |  |  |
Real Estate |  | $ | 25,990 |  |  | $ | 20,749 |  |  | $ | 16,954 |
Elimination and adjustments |  |  | (642 | ) |  |  | (195 | ) |  |  | (256 | )
Total basis of real estate sold |  | $ | 25,348 |  |  | $ | 20,554 |  |  | $ | 16,698 |
Assets: |  |  |  |  |  |  |  |  |  |  |  |
Timberlands2 |  |  | 1,617,809 |  |  |  | 1,655,407 |  |  |  | 1,693,162 |
Wood Products |  |  | 421,066 |  |  |  | 398,465 |  |  |  | 456,306 |
Real Estate3 |  |  | 89,509 |  |  |  | 87,421 |  |  |  | 93,208 |
|  |  | 2,128,384 |  |  |  | 2,141,293 |  |  |  | 2,242,676 |
Corporate |  |  | 252,681 |  |  |  | 93,766 |  |  |  | 83,176 |
Total consolidated assets |  | $ | 2,381,065 |  |  | $ | 2,235,059 |  |  | $ | 2,325,852 |
Capital Expenditures:4 |  |  |  |  |  |  |  |  |  |  |  |
Timberlands |  | $ | 16,252 |  |  | $ | 17,500 |  |  | $ | 17,232 |
Wood Products |  |  | 21,565 |  |  |  | 37,232 |  |  |  | 27,341 |
Real Estate5 |  |  | 7,088 |  |  |  | 8,053 |  |  |  | 5,987 |
|  |  | 44,905 |  |  |  | 62,785 |  |  |  | 50,560 |
Corporate |  |  | 728 |  |  |  | 1,317 |  |  |  | 1,747 |
Total capital expenditures |  | $ | 45,633 |  |  | $ | 64,102 |  |  | $ | 52,307 |
1 | Included within interest expense on the Consolidated Statements of Operations.
2 | We do not report rural real estate separate from Timberlands as we do not report these assets separately to management.
3 | Real Estate assets primarily consist of the master planned community development and a country club, both located in Arkansas.
4 | Does not include the acquisition of timber and timberlands, all of which were acquired by the Timberlands segment.
5 | Real Estate capital expenditures include development expenditures of $6.7 million, $7.3 million and $5.0 million for the years ended December 31, 2020, 2019 and 2018, respectively.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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