REVENUE

6 Months Ended

Jun. 30, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

PERFORMANCE OBLIGATIONS

We recognize revenue when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected in exchange for those goods or services (“transaction price”). Unsatisfied performance obligations as of June 30, 2024 are primarily due to advances on stumpage contracts, unearned license revenue, unearned carbon capture and storage revenue and post-closing obligations on real estate sales. Of these performance obligations, $34.0 million is expected to be recognized within the next twelve months, with the remaining $15.2 million expected to be recognized thereafter as we satisfy our performance obligations. We generally collect payment within a year of satisfying performance obligations and therefore have elected not to adjust revenues for a financing component.

CONTRACT BALANCES

The timing of revenue recognition, invoicing and cash collections results in trade receivables and deferred revenue (contract liabilities) on the Consolidated Balance Sheets. Trade receivables are recorded when we have an unconditional right to consideration for completed performance under the contract. Contract liabilities relate to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as (or when) we perform under the contract.

The following table contains contract balances recorded in the Consolidated Balance Sheets at June 30, 2024 and December 31, 2023:

	June 30, 2024	December 31, 2023	Balance Sheet Location
Contract assets
Trade receivables, net (a)	$31,398	$28,652	Trade receivables
Contract liabilities
Deferred revenue, current (b)	34,021	19,012	Deferred revenue
Deferred revenue, non-current (c)	15,238	11,294	Long-term deferred revenue

(a)The increase in trade receivables was primarily driven by timing of sales in our timber segments.

(b)The increase in deferred revenue, current is driven by the timing of renewals of hunting contracts and the current portion of carbon capture and storage contracts entered into during 2024, partially offset by the satisfaction of post-closing obligations on real estate sales.

(c)The increase in deferred revenue, non-current is primarily driven by carbon capture and storage contracts entered into during 2024.

The following table summarizes revenue recognized during the three and six months ended June 30, 2024 and 2023 that was included in the contract liability balance at the beginning of each year:

	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Revenue recognized from contract liability balance at the beginning of the year (a)	$8,281	$6,335	$18,529	$17,735

(a)    Revenue recognized was primarily from hunting licenses, carbon capture and storage (“CCS”), the use of advances on pay-as-cut timber sales, and the satisfaction of post closing obligations on real estate sales.

The following tables present our revenue from contracts with customers disaggregated by product type for the three and six months ended June 30, 2024 and 2023:

Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
June 30, 2024
Pulpwood	$24,027	$1,461	$9,052	—	$579	—	$35,119
Sawtimber	25,200	21,439	40,111	—	4,373	—	91,123
Hardwood	672	—	—	—	—	—	672
Total Timber Sales	49,899	22,900	49,163	—	4,952	—	126,914
License Revenue, Primarily from Hunting	5,284	130	74	—	—	—	5,488
Land-Based Solutions (a)	2,586	10	—	—	—	—	2,596
Other Non-Timber/Carbon Credit Revenue	1,556	1,243	4,545	—	—	—	7,344
Agency Fee Income	—	—	—	—	296	—	296
Total Non-Timber Sales	9,426	1,383	4,619	—	296	—	15,724
Improved Development	—	—	—	2,575	—	—	2,575
Rural	—	—	—	7,470	—	—	7,470
Timberland & Non-Strategic	—	—	—	15,501	—	—	15,501
Deferred Revenue/Other (b)	—	—	—	5,050	—	—	5,050
Total Real Estate Sales	—	—	—	30,596	—	—	30,596
Revenue from Contracts with Customers	59,325	24,283	53,782	30,596	5,248	—	173,234
Lease Revenue	—	—	—	375	—	—	375
Intersegment	—	—	—	—	34	(34)	—
Total Revenue	$59,325	$24,283	$53,782	$30,971	$5,282	($34)	$173,609
Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
June 30, 2023
Pulpwood	$23,855	$2,204	$8,364	—	$1,442	—	$35,865
Sawtimber	33,846	27,781	51,829	—	13,510	—	126,966
Hardwood	706	—	—	—	—	—	706
Total Timber Sales	58,407	29,985	60,193	—	14,952	—	163,537
License Revenue, Primarily from Hunting	5,120	203	68	—	—	—	5,391
Land-Based Solutions (a)	1,033	1,334	—	—	—	—	2,367
Other Non-Timber/Carbon Credit Revenue	3,750	795	637	—	—	—	5,182
Agency Fee Income	—	—	—	—	347	—	347
Total Non-Timber Sales	9,903	2,332	705	—	347	—	13,287
Improved Development	—	—	—	12,233	—	—	12,233
Rural	—	—	—	15,626	—	—	15,626
Timberland & Non-Strategic	—	—	—	255	—	—	255
Deferred Revenue/Other (b)	—	—	—	3,568	—	—	3,568
Total Real Estate Sales	—	—	—	31,682	—	—	31,682
Revenue from Contracts with Customers	68,310	32,317	60,898	31,682	15,299	—	208,506
Lease Revenue	—	—	—	359	—	—	359
Intersegment	—	—	—	—	116	(116)	—
Total Revenue	$68,310	$32,317	$60,898	$32,041	$15,415	($116)	$208,865

(a)    Consists of sales from carbon capture and storage (“CCS”), solar and wind energy contracts and conservation easements for habitat protection.

(b)    Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales.

Six Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
June 30, 2024
Pulpwood	$49,958	$3,012	$16,806	—	$1,717	—	$71,493
Sawtimber	58,940	44,116	74,516	—	14,568	—	192,140
Hardwood	1,867	—	—	—	—	—	1,867
Total Timber Sales	110,765	47,128	91,322	—	16,285	—	265,500
License Revenue, Primarily From Hunting	10,559	225	125	—	—	—	10,909
Land-Based Solutions (a)	4,294	20	—	—	—	—	4,314
Other Non-Timber/Carbon Credit Revenue	3,684	2,102	8,035	—	—	—	13,821
Agency Fee Income	—	—	—	—	627	—	627
Total Non-Timber Sales	18,537	2,347	8,160	—	627	—	29,671
Improved Development	—	—	—	4,400	—	—	4,400
Rural	—	—	—	16,198	—	—	16,198
Timberland & Non-Strategic	—	—	—	16,111	—	—	16,111
Deferred Revenue/Other (b)	—	—	—	9,162	—	—	9,162
Total Real Estate Sales	—	—	—	45,871	—	—	45,871
Revenue from Contracts with Customers	129,302	49,475	99,482	45,871	16,912	—	341,042
Lease Revenue	—	—	—	664	—	—	664
Intersegment	—	—	—	—	144	(144)	—
Total Revenue	$129,302	$49,475	$99,482	$46,535	$17,056	($144)	$341,706
Six Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
June 30, 2023
Pulpwood	$50,638	$5,919	$14,446	—	$2,881	—	$73,884
Sawtimber	68,389	57,562	89,512	—	24,176	—	239,639
Hardwood	1,826	—	—	—	—	—	1,826
Total Timber Sales	120,853	63,481	103,958	—	27,057	—	315,349
License Revenue, Primarily from Hunting	10,342	340	123	—	—	—	10,805
Land-Based Solutions (a)	1,868	1,337	—	—	—	—	3,205
Other Non-Timber/Carbon Credit Revenue	7,089	1,578	923	—	—	—	9,590
Agency Fee Income	—	—	—	—	681	—	681
Total Non-Timber Sales	19,299	3,255	1,046	—	681	—	24,281
Improved Development	—	—	—	17,035	—	—	17,035
Rural	—	—	—	22,125	—	—	22,125
Timberland & Non-Strategic	—	—	—	1,892	—	—	1,892
Deferred Revenue/Other (b)	—	—	—	6,661	—	—	6,661
Total Real Estate Sales	—	—	—	47,713	—	—	47,713
Revenue from Contracts with Customers	140,152	66,736	105,004	47,713	27,738	—	387,343
Lease Revenue	—	—	—	604	—	—	604
Intersegment	—	—	—	—	246	(246)	—
Total Revenue	$140,152	$66,736	$105,004	$48,317	$27,984	($246)	$387,947

(a)    Consists of sales from carbon capture and storage (“CCS”), solar and wind energy contracts and conservation easements for habitat protection.

(b)    Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales.    

The following tables present our timber sales disaggregated by contract type for the three and six months ended June 30, 2024 and 2023:

Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Trading	Total
June 30, 2024
Stumpage Pay-as-Cut	$26,095	$5	—	—	$26,100
Stumpage Lump Sum	—	1,554	—	—	1,554
Total Stumpage	26,095	1,559	—	—	27,654
Delivered Wood (Domestic)	22,005	21,341	12,669	709	56,724
Delivered Wood (Export)	1,799	—	36,494	4,243	42,536
Total Delivered	23,804	21,341	49,163	4,952	99,260
Total Timber Sales	$49,899	$22,900	$49,163	$4,952	$126,914
June 30, 2023
Stumpage Pay-as-Cut	$30,493	—	—	—	$30,493
Stumpage Lump Sum	281	—	—	—	281
Total Stumpage	30,774	—	—	—	30,774
Delivered Wood (Domestic)	25,437	26,996	12,559	89	65,081
Delivered Wood (Export)	2,196	2,989	47,634	14,863	67,682
Total Delivered	27,633	29,985	60,193	14,952	132,763
Total Timber Sales	$58,407	$29,985	$60,193	$14,952	$163,537

Six Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Trading	Total
June 30, 2024
Stumpage Pay-as-Cut	$59,624	$8	—	—	$59,632
Stumpage Lump Sum	—	3,535	—	—	3,535
Total Stumpage	59,624	3,543	—	—	63,167
Delivered Wood (Domestic)	47,118	40,901	23,497	1,467	112,983
Delivered Wood (Export)	4,023	2,684	67,825	14,818	89,350
Total Delivered	51,141	43,585	91,322	16,285	202,333
Total Timber Sales	$110,765	$47,128	$91,322	$16,285	$265,500
June 30, 2023
Stumpage Pay-as-Cut	$60,970	—	—	—	$60,970
Stumpage Lump Sum	387	624	—	—	1,011
Total Stumpage	61,357	624	—	—	61,981
Delivered Wood (Domestic)	54,850	56,164	24,154	491	135,659
Delivered Wood (Export)	4,646	6,693	79,804	26,566	117,709
Total Delivered	59,496	62,857	103,958	27,057	253,368
Total Timber Sales	$120,853	$63,481	$103,958	$27,057	$315,349