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Segment Information
 12 Months Ended
Dec. 31, 2015
Segment Reporting Information, Additional Information [Abstract]  
Segment Information
SEGMENT INFORMATION
Our businesses are organized into three reportable operating segments: Resource, Wood Products and Real Estate. The 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 generates revenues from non-timber resources such as hunting leases, recreation permits and leases, mineral rights leases, biomass production and carbon sequestration. The Wood Products segment manufactures and markets lumber and plywood. The business of our Real Estate segment consists primarily of the sale of land holdings deemed non-strategic or identified as having higher and better use alternatives. The Real Estate segment engages in real estate subdivision activities through Potlatch TRS.
The reporting segments follow the same accounting policies used for our Consolidated Financial Statements, as described in the summary of significant 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)
2015
 
2014
 
2013
Revenues:
 
 
 
 
 
Resource
$
263,875

 
$
252,581

 
$
238,228

Wood Products
336,214

 
376,239

 
366,015

Real Estate
28,989

 
40,460

 
26,160

 
629,078

 
669,280

 
630,403

Elimination of intersegment revenues - Resource1
(53,742
)
 
(62,330
)
 
(60,114
)
Total consolidated revenues
$
575,336

 
$
606,950

 
$
570,289

Operating Income (loss):
 
 
 
 
 
Resource
$
76,350

 
$
84,976

 
$
73,425

Wood Products
(5,235
)
 
52,442

 
58,892

Real Estate
16,849

 
26,945

 
18,266

Eliminations and adjustments
3,283

 
(190
)
 
(907
)
 
91,247

 
164,173

 
149,676

Corporate
(32,340
)
 
(31,667
)
 
(42,078
)
Operating income
58,907

 
132,506

 
107,598

Interest expense, net
(32,761
)
 
(22,909
)
 
(23,132
)
Income before income taxes
$
26,146

 
$
109,597

 
$
84,466

 
 
 
 
 
 
Depreciation, depletion and amortization:
 
 
 
 
 
Resource
$
28,807

 
$
17,847

 
$
18,103

Wood Products
6,810

 
6,176

 
6,194

Real Estate
56

 
59

 
56

 
35,673

 
24,082

 
24,353

Corporate
2,432

 
2,667

 
2,609

Total depreciation, depletion and amortization
$
38,105

 
$
26,749

 
$
26,962

Basis of real estate sold:
 
 
 
 
 
Real Estate
$
7,394

 
$
9,355

 
$
3,536

Elimination and adjustments
(382
)
 
(709
)
 
(632
)
Total basis of real estate sold
$
7,012

 
$
8,646

 
$
2,904

Assets:
 
 
 
 
 
Resource and Real Estate2
$
837,630

 
$
847,873

 
$
476,628

Wood Products
131,103

 
118,674

 
115,664

 
968,733

 
966,547

 
592,292

Corporate
47,879

 
65,199

 
84,910

Total consolidated assets
$
1,016,612

 
$
1,031,746

 
$
677,202

Capital Expenditures:3
 
 
 
 
 
Resource and Real Estate
$
13,681

 
$
11,116

 
$
12,449

Wood Products
18,482

 
12,551

 
9,013

 
32,163

 
23,667

 
21,462

Corporate
569

 
565

 
1,131

Total capital expenditures
$
32,732

 
$
24,232

 
$
22,593


1  
Intersegment revenues were based on prevailing market prices of logs sold by our Resource segment to the Wood Products segment.
2 
Assets are shown on a combined basis for the Resource and Real Estate segments, as we do not produce information separately for those segments for internal purposes.
3 
Excludes acquisition of timber and timberlands.
All of our wood products facilities and all other assets are located within the continental United States. Geographic information regarding our revenues is summarized as follows:
(Dollars in thousands)
2015
 
2014
 
2013
United States
$
573,398

 
$
601,738

 
$
558,138

Canada
851

 
2,618

 
9,645

Mexico
919

 
2,594

 
2,506

Other
168

 
—

 
—

Total consolidated revenues
$
575,336

 
$
606,950

 
$
570,289



One customer within our Resource segment accounted for slightly more than 10% of our revenues in the years ended December 31, 2015, 2014 and 2013.