Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting Information, Additional Information [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

As of December 31, 2012, our businesses are organized into three reportable operating segments: Resource; Real Estate; and Wood Products. Our Resource segment manages our timberlands to optimize revenue producing opportunities while adhering to our strict stewardship standards. Management activities include planting and harvesting trees and building and maintaining roads. The Resource segment also seeks to increase our revenues from non-timber resources such as from hunting leases, recreation permits and leases, mineral rights leases, biomass production, carbon sequestration, and various other leasing opportunities. The activities of our Real Estate segment consist primarily of the sale of selected non-core timberland real estate. The Real Estate segment engages in real estate subdivision and development activities through Potlatch TRS and also plays an active role in negotiations for all timberland acquisitions. Our Wood Products segment manufactures and markets lumber and plywood.

The reporting segments follow the same accounting policies used for our consolidated financial statements, as described in the summary of principal accounting policies, with the exception of the valuation of inventories. All segment inventories are reported using the average cost method, while the LIFO reserve is recorded at the corporate level. Management evaluates a segment’s performance based upon profit or loss from operations before income taxes. Intersegment revenues are recorded based on prevailing market prices.

The following table presents business segment information for each of the past three years. Corporate information is included to reconcile segment data to the consolidated financial statements.

(Dollars in thousands)

	2012			2011			2010
Segment Revenues:
Resource	$	207,846		$	226,969		$	225,834
Real Estate	38,238			50,029			85,226
Wood Products	329,404			271,580			273,887
	575,488			548,578			584,947
Elimination of intersegment revenues - Resource1	(50,354		)	(51,157		)	(45,500		)
Total consolidated revenues	$	525,134		$	497,421		$	539,447
Operating Income:
Resource	$	49,543		$	59,792		$	62,107
Real Estate	28,056			31,384			30,425
Wood Products	45,456			7,267			7,140
Eliminations and adjustments	(1,061		)	2,410			1,900
	121,994			100,853			101,572
Corporate	(62,591		)	(56,442		)	(56,701		)
Income from continuing operations before taxes	$	59,403		$	44,411		$	44,871
Depreciation, depletion and amortization:2
Resource	$	16,446		$	17,420		$	20,481
Real Estate	36			28			—
Wood Products	6,538			7,829			8,188
	23,020			25,277			28,669
Corporate	3,227			3,815			2,535
Total depreciation, depletion and amortization	$	26,247		$	29,092		$	31,204
Basis of real estate sold:
Real Estate	$	5,413		$	13,500		$	48,670
Elimination and adjustments	(365		)	(3,281		)	—
Total basis of real estate sold	$	5,048		$	10,219		$	48,670
Assets:
Resource and Real Estate3	$	477,271		$	476,483		$	495,780
Wood Products	100,190			102,957			98,987
	577,461			579,440			594,767
Corporate	141,436			166,780			186,944
Total consolidated assets	$	718,897		$	746,220		$	781,711
Capital Expenditures:
Resource and Real Estate4	$	23,916		$	12,003		$	11,534
Wood Products	4,427			4,050			1,896
	28,343			16,053			13,430
Corporate	845			833			1,571
Total capital expenditures	$	29,188		$	16,886		$	15,001

¹   Intersegment revenues for 2010-2012, which were based on prevailing market prices, consisted of logs sold by our Resource segment to the Wood Products segment.

²  Excludes $0.1 million and $1.2 million asset impairment charges in 2012 and 2011, respectively.

³  Assets are shown on a combined basis for the Resource and Real Estate segments, as we do not produce such internal information separately for those segments.

⁴ Capital expenditures are shown on a combined basis for the Resource and Real Estate segments, as we do not produce such internal information separately for those segments. Capital expenditures for the Resource and Real Estate segments include capitalized reforestation costs, logging road construction, additions to timber and timberlands, additions to equipment and deposits on timberlands for reverse LKE transactions. Not included in additions to timber and timberlands for 2012, 2011 and 2010 are non-cash transactions totaling $0.6 million, $0.3 million and $0, respectively, for the purchase of timberlands.

All of our wood products facilities and all other assets are located within the continental United States. However, we also sell and ship products to Canada and Mexico. Geographic information regarding our revenues is summarized as follows:

(Dollars in thousands)

	2012		2011		2010
United States	$	516,466	$	490,409	$	532,862
Canada	5,180		4,646		5,959
Mexico	3,488		2,366		626
Total consolidated revenues	$	525,134	$	497,421	$	539,447