VARIABLE INTEREST ENTITIES

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

ORM Timber Fund II, Inc. (Fund II), ORM Timber Fund III LLC (Fund III), and ORM Timber Fund IV LLC. (Fund IV) (Collectively, “The Funds”)

In the May 8, 2020 merger with Pope Resources, we became manager of three private equity timber funds, Fund II, Fund III, and Fund IV, and obtained ownership interests in the funds of 20%, 5%, and 15%, respectively. We determined, based upon an analysis under the variable interest entity guidance, that we have the power to direct the activities that most significantly impact the Funds’ economic success. Therefore, we are considered the primary beneficiary and are required under ASC 810 — Consolidation to consolidate the Funds. For further information on The Funds, see Note 5 — Noncontrolling Interests.

The assets and liabilities of The Funds as of June 30, 2020, were as follows:

Timber Funds	June 30, 2020
Assets:
Cash and cash equivalents	$6,973
Accounts receivable	3,213
Prepaid expenses	81
Other current assets	361
Total current assets	10,628
Timber and timberlands, net of depletion and amortization	467,800
Other assets	3
Total assets	$478,431
Liabilities and Equity:
Accounts payable	$636
Intercompany payable (a)	3,837
Current maturities of long-term debt	25,042
Accrued taxes	251
Accrued interest	655
Deferred revenue	1
Other current liabilities	787
Total current liabilities	31,209
Long-term debt	35,617
Funds’ equity	411,605
Total liabilities and equity	$478,431

(a)Includes management fees and other expenses payable to the Operating Partnership. These amounts are eliminated in the Consolidated Balance Sheets.

Ferncliff Investors

We also acquired in the merger with Pope Resources an ownership interest in a real estate joint venture entity. We determined, based upon an analysis under the variable interest entity guidance, that we have the power to direct the activities that most significantly impact the joint venture’s economic success. Therefore, we are considered the primary beneficiary and are required under ASC 810 — Consolidation to consolidate Ferncliff Investors. For further information on Ferncliff Investors, see Note 5 — Noncontrolling Interests.

The assets and liabilities of Ferncliff Investors as of June 30, 2020, were as follows:

Ferncliff Investors	June 30, 2020
Assets:
Cash and cash equivalents	$760
Total current assets	760
Investment in real estate joint venture entity	3,141
Advances to real estate joint venture entity	1,000
Total assets	$4,901
Liabilities and equity:
Intercompany payable (a)	$10
Total current liabilities	10
Ferncliff Investors’ equity	4,891
Total liabilities and equity	$4,901

(a)Includes miscellaneous expenses payable to the Operating Partnership. These amounts are eliminated in the Consolidated Balance Sheets.