Segment Information

3 Months Ended

Mar. 31, 2021

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 represents our revenues by major product:

	Three Months Ended March 31,
(in thousands)	2021			2020
Timberlands
Northern region
Sawlogs	$	76,181		$	41,407
Pulpwood		499			1,435
Stumpage		—			316
Other		300			303
Total Northern revenues		76,980			43,461
Southern region
Sawlogs		22,416			23,939
Pulpwood		9,161			11,201
Stumpage		764			829
Other		2,595			2,995
Total Southern revenues		34,936			38,964
Total Timberlands revenues		111,916			82,425
Wood Products
Lumber		229,682			111,939
Residuals and Panels		39,614			33,061
Total Wood Products revenues		269,296			145,000
Real Estate
Rural real estate		10,025			7,292
Development real estate		8,053			2,292
Other		2,235			1,385
Total Real Estate revenues		20,313			10,969
Total segment revenues		401,525			238,394
Intersegment Timberlands revenues1		(47,332	)		(29,514	)
Total consolidated revenues	$	354,193		$	208,880

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

Management primarily evaluates the performance of its segments and allocates resources to them based upon Adjusted EBITDDA. EBITDDA is calculated as net income (loss) 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. Management uses Adjusted EBITDDA to compare the operating performance of our segments on a consistent basis and to evaluate the performance and effectiveness of each segment’s operational strategies. 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 (loss) before income taxes. Corporate information is included to reconcile segment data to the Condensed Consolidated Financial Statements.

	Three Months Ended March 31,
(in thousands)	2021			2020
Adjusted EBITDDA:
Timberlands	$	67,858		$	34,982
Wood Products		125,555			13,229
Real Estate		16,593			7,340
Corporate		(10,710	)		(8,672	)
Eliminations and adjustments		(4,310	)		692
Total Adjusted EBITDDA		194,986			47,571
Interest expense, net1		(3,574	)		(3,698	)
Depreciation, depletion and amortization		(17,996	)		(18,638	)
Basis of real estate sold		(8,823	)		(6,498	)
Pension settlement charge		—			(42,988	)
Non-operating pension and other postretirement employee benefits		(3,414	)		(3,635	)
(Loss) gain on disposal of fixed assets		(34	)		192
Income (loss) before income taxes	$	161,145		$	(27,694	)
Depreciation, depletion and amortization:
Timberlands	$	11,417		$	12,591
Wood Products		6,203			5,630
Real Estate		155			160
Corporate		221			257
		17,996			18,638
Bond discounts and deferred loan fees1		403			406
Total depreciation, depletion and amortization	$	18,399		$	19,044
Basis of real estate sold:
Real Estate	$	8,829		$	6,504
Eliminations and adjustments		(6	)		(6	)
Total basis of real estate sold	$	8,823		$	6,498

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