Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

NOTE 2. 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 2021, 2020 or 2019.

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 represent a significant 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)	2021			2020			2019
Timberlands
Northern region
Sawlogs	$	299,330		$	213,030		$	161,570
Pulpwood		1,134			4,502			5,767
Stumpage		—			316			109
Other		993			1,581			1,970
Total Northern revenues		301,457			219,429			169,416
Southern region
Sawlogs		83,836			93,828			88,048
Pulpwood		45,957			49,084			53,315
Stumpage		7,533			4,077			1,666
Other		10,664			10,101			10,248
Total Southern revenues		147,990			157,090			153,277
Total Timberlands revenues		449,447			376,519			322,693
Wood Products
Lumber		816,149			573,069			396,648
Residuals and Panels		172,739			125,336			143,760
Total Wood Products revenues		988,888			698,405			540,408
Real Estate
Rural real estate		37,622			81,979			49,675
Development real estate		16,751			14,979			22,363
Other		9,440			7,458			6,834
Total Real Estate revenues		63,813			104,416			78,872
Total segment revenues		1,502,148			1,179,340			941,973
Intersegment Timberlands revenues1		(164,713	)		(138,410	)		(114,875	)
Total consolidated revenues	$	1,337,435		$	1,040,930		$	827,098

1 Intersegment revenues represent logs sold by our Timberlands segment to our 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 operating 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)	2021			2020			2019
Adjusted EBITDDA:
Timberlands	$	262,944		$	182,802		$	133,987
Wood Products		393,858			176,095			12,901
Real Estate		47,457			86,476			62,650
Corporate		(47,393	)		(48,451	)		(36,257	)
Eliminations and adjustments		(3,995	)		(14,694	)		5,662
Total Adjusted EBITDDA		652,871			382,228			178,943
Interest expense, net1		(29,275	)		(29,463	)		(30,361	)
Depreciation, depletion and amortization		(75,633	)		(76,261	)		(70,417	)
Basis of real estate sold		(27,360	)		(25,348	)		(20,554	)
Net gain on fire damage		3,361			—			—
Loss on extinguishment of debt		—			—			(5,512	)
Pension settlement charge		—			(42,988	)		—
Non-operating pension and other postretirement employee benefits		(13,227	)		(14,226	)		(3,739	)
(Loss) gain on fixed assets		(1,721	)		11			(865	)
Gain on sale of facility		—			—			9,176
Income before income taxes	$	509,016		$	193,953		$	56,671

1 Includes amortization of bond discounts and deferred loan fees.

The following table summarizes additional reportable segment financial information:

	Year Ended December 31,
(in thousands)	2021			2020			2019
Depreciation, depletion and amortization:
Timberlands	$	45,403		$	51,047		$	46,601
Wood Products		28,802			23,611			22,059
Real Estate		640			620			678
Corporate		788			983			1,079
		75,633			76,261			70,417
Bond discount and deferred loan fees1		1,792			1,624			1,688
Total depreciation, depletion and amortization	$	77,425		$	77,885		$	72,105
Basis of real estate sold:
Real Estate	$	27,381		$	25,990		$	20,749
Elimination and adjustments		(21	)		(642	)		(195	)
Total basis of real estate sold	$	27,360		$	25,348		$	20,554
Assets:
Timberlands2		1,713,582			1,617,809			1,655,407
Wood Products		435,300			421,066			398,465
Real Estate3		81,561			89,509			87,421
		2,230,443			2,128,384			2,141,293
Corporate		304,772			252,681			93,766
Total consolidated assets	$	2,535,215		$	2,381,065		$	2,235,059
Capital Expenditures:4
Timberlands	$	16,163		$	16,252		$	17,500
Wood Products		38,360			21,565			37,232
Real Estate5		9,798			7,088			8,053
		64,321			44,905			62,785
Corporate		256			728			1,317
Total capital expenditures	$	64,577		$	45,633		$	64,102

1	Included within interest expense in 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 our Timberlands segment.
5	Real Estate capital expenditures include development expenditures of $9.2 million, $6.7 million and $7.3 million for the years ended December 31, 2021, 2020 and 2019, respectively.