Segment Information

6 Months Ended

Jun. 30, 2022

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. Activities in the Real Estate segment include our rural timberland-holdings sales program, 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.

The following table presents our revenues by major product:

	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2022			2021			2022			2021
Timberlands
Northern region
Sawlogs	$	62,930		$	86,773		$	144,434		$	162,954
Pulpwood		587			197			979			696
Other		213			235			516			535
Total Northern revenues		63,730			87,205			145,929			164,185
Southern region
Sawlogs		24,365			21,013			47,746			43,429
Pulpwood		12,221			10,163			23,848			19,324
Stumpage		2,108			271			5,466			1,035
Other		3,062			2,564			6,154			5,159
Total Southern revenues		41,756			34,011			83,214			68,947
Total Timberlands revenues		105,486			121,216			229,143			233,132
Wood Products
Lumber		219,924			308,480			470,688			538,162
Residuals and Panels		46,709			49,193			91,687			88,807
Total Wood Products revenues		266,633			357,673			562,375			626,969
Real Estate
Rural real estate		16,440			11,505			38,086			21,530
Development real estate		7,946			1,774			18,224			9,827
Other		2,350			2,719			4,491			4,954
Total Real Estate revenues		26,736			15,998			60,801			36,311
Total segment revenues		398,855			494,887			852,319			896,412
Intersegment Timberlands revenues1		(39,258	)		(47,381	)		(81,372	)		(94,713	)
Total consolidated revenues	$	359,597		$	447,506		$	770,947		$	801,699

1 Intersegment revenues represent logs sold by our Timberlands segment to our Wood Products segment.

Management uses Adjusted EBITDDA to evaluate the operating performance and effectiveness of operating strategies of our segments and allocation of resources to them. 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. 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 June 30,						Six Months Ended June 30,
(in thousands)	2022			2021			2022			2021
Adjusted EBITDDA:
Timberlands	$	57,890		$	77,259		$	134,324		$	145,117
Wood Products		107,256			204,533			257,207			330,088
Real Estate		21,816			11,788			51,940			28,381
Corporate		(13,912	)		(12,822	)		(23,496	)		(23,532	)
Eliminations and adjustments		2,120			(5,774	)		757			(10,084	)
Total Adjusted EBITDDA		175,170			274,984			420,732			469,970
Interest expense, net1		(7,419	)		(8,199	)		(10,313	)		(11,773	)
Depreciation, depletion and amortization		(20,007	)		(17,029	)		(39,509	)		(35,025	)
Basis of real estate sold		(7,325	)		(7,213	)		(18,179	)		(16,036	)
Gain on fire damage		9,868			—			9,592			—
Pension settlement charge		—			—			(14,165	)		—
Non-operating pension and other postretirement employee benefits		(1,809	)		(3,271	)		(3,738	)		(6,685	)
Gain (loss) on disposal of fixed assets		13			(527	)		16			(561	)
Income before income taxes	$	148,491		$	238,745		$	344,436		$	399,890
Depreciation, depletion and amortization:
Timberlands	$	11,563		$	10,482		$	23,724		$	21,899
Wood Products		8,136			6,179			15,157			12,382
Real Estate		173			160			343			315
Corporate		135			208			285			429
		20,007			17,029			39,509			35,025
Bond discounts and deferred loan fees1		372			403			744			806
Total depreciation, depletion and amortization	$	20,379		$	17,432		$	40,253		$	35,831
Basis of real estate sold:
Real Estate	$	7,328		$	7,219		$	18,188		$	16,048
Eliminations and adjustments		(3	)		(6	)		(9	)		(12	)
Total basis of real estate sold	$	7,325		$	7,213		$	18,179		$	16,036

1 Bond discounts and deferred loan fees are reported within interest expense, net on the Condensed Consolidated Statements of Operations.