Certain Balance Sheet Components

9 Months Ended

Sep. 30, 2021

Balance Sheet Related Disclosures [Abstract]

NOTE 4. CERTAIN BALANCE SHEET COMPONENTS

Inventories


(in thousands)	September 30, 2021			December 31, 2020
Logs	$	34,980		$	31,210
Lumber, panels and veneer		35,716			34,136
Materials and supplies		17,415			14,939
Total inventories		88,111			80,285
Less: LIFO reserve		(18,249	)		(18,249	)
Total inventories, net	$	69,862		$	62,036

Property, plant and equipment


(in thousands)	September 30, 2021			December 31, 2020
Property, plant and equipment	$	521,271		$	517,711
Less: accumulated depreciation		(235,237	)		(229,167	)
Total property, plant and equipment, net	$	286,034		$	288,544

Ola Arkansas sawmill fire


(in thousands)	Three Months Ended September 30, 2021			Nine Months Ended September 30, 2021
Fixed asset write-offs	$	(7,436	)	$	(9,544	)
Disposal costs		(1,061	)		(1,061	)
Total fixed asset loss on disposal		(8,498	)		(10,606	)

Insurance recoveries		12,892			15,000
Net gain on insurance recoveries	$	4,394		$	4,394

On June 13, 2021, a fire occurred at our Ola, Arkansas sawmill. There were no injuries or environmental issues from the fire. The damage was principally limited to the large log primary breakdown area of the mill. The planer mill, kiln, and shipping department were not affected. We have adequate property damage and business interruption insurance, subject to an applicable deductible. Based on our initial damage assessment, we wrote-off $2.1 million of net book value for property initially identified as destroyed and recognized a corresponding $2.1 million of insurance recoveries at June 30, 2021.

During the quarter ended September 30, 2021, we were able to fully access the sawmill, further assess the damage and solidify a reconstruction plan for the sawmill. As a result, during the three months ended September 30, 2021, we wrote-off an additional $1.1 million of damaged equipment and $6.3 million of obsolete equipment due to the reconstruction plan and incurred approximately $1.1 million of disposal costs. Additionally, we recorded $12.9 million of insurance recoveries during the quarter ended September 30, 2021, resulting in the recognition of a $4.4 million net gain on insurance recoveries for the three and nine months ended September 30, 2021. No business interruption recoveries were recorded during the three or nine months ended September 30, 2021 as discussions with the insurance carriers are ongoing. Business interruption recoveries will be recorded when deemed probable and reasonably estimable.

Timber and timberlands


(in thousands)	September 30, 2021		December 31, 2020
Timber and timberlands	$	1,488,727	$	1,516,788
Logging roads		83,748		83,273
Total timber and timberlands, net	$	1,572,475	$	1,600,061

Accounts payable and accrued liabilities


(in thousands)	September 30, 2021		December 31, 2020
Accrued payroll and benefits	$	26,266	$	29,675
Accounts payable		15,795		9,724
Deferred revenue1		9,806		8,789
Other accrued taxes		8,957		6,025
Income taxes payable		6,778		14,755
Accrued interest		5,040		6,485
Other current liabilities		15,177		17,826
Total accounts payable and accrued liabilities	$	87,819	$	93,279

Deferred revenue predominately relates to hunting and other access rights on our timberlands, payments received for lumber shipments where control of goods have not transferred, member related activities at an owned country club and certain post-close obligations for real estate sales. These contract liabilities are recognized over the term of the contracts, which is typically twelve months or less, except for country club initiation fees which are recognized over the average life of club membership.