Segment Information

6 Months Ended

Jun. 30, 2023

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 sells 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, a 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)	2023			2022			2023			2022
Timberlands
Northern region
Sawlogs	$	36,822		$	62,930		$	90,147		$	144,434
Pulpwood		369			587			772			979
Other		372			213			633			516
Total Northern revenues		37,563			63,730			91,552			145,929
Southern region
Sawlogs		27,802			24,365			59,556			47,746
Pulpwood		15,006			12,221			31,138			23,848
Stumpage		4,148			2,108			13,381			5,466
Other		4,098			3,062			8,228			6,154
Total Southern revenues		51,054			41,756			112,303			83,214
Total Timberlands revenues		88,617			105,486			203,855			229,143
Wood Products
Lumber		133,289			219,924			247,087			470,688
Residuals and Panels		34,380			46,709			73,377			91,687
Total Wood Products revenues		167,669			266,633			320,464			562,375
Real Estate
Rural real estate		4,570			16,440			22,389			38,086
Development real estate		9,409			7,946			12,209			18,224
Other		3,085			2,350			6,329			4,491
Total Real Estate revenues		17,064			26,736			40,927			60,801
Total segment revenues		273,350			398,855			565,246			852,319
Intersegment Timberlands revenues1		(27,243	)		(39,258	)		(61,177	)		(81,372	)
Other intersegment revenues		(6	)		—			(6	)		—
Total consolidated revenues	$	246,101		$	359,597		$	504,063		$	770,947

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)	2023			2022			2023			2022
Adjusted EBITDDA:
Timberlands	$	29,316		$	57,890		$	75,955		$	134,324
Wood Products		11,967			107,256			11,936			257,207
Real Estate		12,237			21,816			31,702			51,940
Corporate		(10,521	)		(13,912	)		(21,262	)		(23,496	)
Eliminations and adjustments		2,446			2,120			4,891			757
Total Adjusted EBITDDA		45,445			175,170			103,222			420,732
Interest expense, net1		(7,613	)		(7,419	)		(7,812	)		(10,313	)
Depreciation, depletion and amortization		(27,087	)		(20,007	)		(58,851	)		(39,509	)
Basis of real estate sold		(4,884	)		(7,325	)		(15,515	)		(18,179	)
CatchMark merger-related expenses		(244	)		—			(2,453	)		—
Gain on fire damage		23,110			9,868			23,110			9,592
Pension settlement charge		—			—			—			(14,165	)
Non-operating pension and other postretirement employee benefit costs		(229	)		(1,809	)		(457	)		(3,738	)
(Loss) gain on disposal of fixed assets		(21	)		13			(21	)		16
Other		258			—			268			—
Income before income taxes	$	28,735		$	148,491		$	41,491		$	344,436
Depreciation, depletion and amortization:
Timberlands	$	15,895		$	11,563		$	36,356		$	23,724
Wood Products		10,948			8,136			21,983			15,157
Real Estate		121			173			277			343
Corporate		123			135			235			285
		27,087			20,007			58,851			39,509
Bond discounts and deferred loan fees1		409			372			818			744
Total depreciation, depletion and amortization	$	27,496		$	20,379		$	59,669		$	40,253
Basis of real estate sold:
Real Estate	$	4,887		$	7,328		$	15,518		$	18,188
Eliminations and adjustments		(3	)		(3	)		(3	)		(9	)
Total basis of real estate sold	$	4,884		$	7,325		$	15,515		$	18,179

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