Segment Information

12 Months Ended

Dec. 31, 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. 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 2022, 2021 or 2020.

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)	2022			2021			2020
Timberlands
Northern region
Sawlogs	$	286,970		$	299,330		$	213,030
Pulpwood		2,038			1,134			4,502
Stumpage		—			—			316
Other		1,131			993			1,581
Total Northern revenues		290,139			301,457			219,429
Southern region
Sawlogs		106,582			83,836			93,828
Pulpwood		60,363			45,957			49,084
Stumpage		13,903			7,533			4,077
Other		14,603			10,664			10,101
Total Southern revenues		195,451			147,990			157,090
Total Timberlands revenues		485,590			449,447			376,519
Wood Products
Lumber		744,139			816,149			573,069
Residuals and Panels		168,473			172,739			125,336
Total Wood Products revenues		912,612			988,888			698,405
Real Estate
Rural real estate		48,039			37,622			81,979
Development real estate		33,561			16,751			14,979
Other		9,891			9,440			7,458
Total Real Estate revenues		91,491			63,813			104,416
Total segment revenues		1,489,693			1,502,148			1,179,340
Intersegment Timberlands revenues1		(158,913	)		(164,713	)		(138,410	)
Total consolidated revenues	$	1,330,780		$	1,337,435		$	1,040,930

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, net, 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 Consolidated Financial Statements.

	Year Ended December 31,
(in thousands)	2022			2021			2020
Adjusted EBITDDA:
Timberlands	$	249,373		$	262,944		$	182,802
Wood Products		290,907			393,858			176,095
Real Estate		73,258			47,457			86,476
Corporate		(49,314	)		(47,393	)		(48,451	)
Eliminations and adjustments		9,931			(3,995	)		(14,694	)
Total Adjusted EBITDDA		574,155			652,871			382,228
Interest expense, net1		(27,400	)		(29,275	)		(29,463	)
Depreciation, depletion and amortization		(96,700	)		(75,633	)		(76,261	)
Basis of real estate sold		(29,921	)		(27,360	)		(25,348	)
Environmental charge		(5,550	)		—			—
CatchMark merger-related expenses		(27,325	)		—			—
Gain on fire damage		34,505			3,361			—
Pension settlement charge		(14,165	)		—			(42,988	)
Non-operating pension and other postretirement employee benefits		(8,138	)		(13,227	)		(14,226	)
(Loss) gain on fixed assets		(82	)		(1,721	)		11
Other		(67	)		—			—
Income before income taxes	$	399,312		$	509,016		$	193,953

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)	2022			2021			2020
Depreciation, depletion and amortization:
Timberlands	$	59,532		$	45,403		$	51,047
Wood Products		35,953			28,802			23,611
Real Estate		695			640			620
Corporate		520			788			983
		96,700			75,633			76,261
Bond discount and deferred loan fees1		1,534			1,792			1,624
Total depreciation, depletion and amortization	$	98,234		$	77,425		$	77,885
Basis of real estate sold:
Real Estate	$	29,932		$	27,381		$	25,990
Elimination and adjustments		(11	)		(21	)		(642	)
Total basis of real estate sold	$	29,921		$	27,360		$	25,348
Assets:
Timberlands2	$	2,545,608		$	1,713,582		$	1,617,809
Wood Products		441,196			435,300			421,066
Real Estate3		71,949			81,561			89,509
		3,058,753			2,230,443			2,128,384
Corporate		491,802			304,772			252,681
Total consolidated assets	$	3,550,555		$	2,535,215		$	2,381,065
Capital Expenditures:4
Timberlands	$	17,752		$	16,163		$	16,252
Wood Products		55,913			38,360			21,565
Real Estate5		8,757			9,798			7,088
		82,422			64,321			44,905
Corporate		374			256			728
Total capital expenditures	$	82,796		$	64,577		$	45,633

1	Included within interest expense, net 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 $8.1 million, $9.2 million and $6.7 million for the year ended December 31, 2022, 2021 and 2020, respectively.