REVENUE

9 Months Ended

Sep. 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 September 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, $29.6 million is expected to be recognized within the next twelve months, with the remaining $14.1 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 September 30, 2024 and December 31, 2023:

	September 30, 2024	December 31, 2023	Balance Sheet Location
Contract assets
Trade receivables, net (a)	$37,155	$28,652	Trade receivables
Contract liabilities
Deferred revenue, current (b)	29,570	19,012	Deferred revenue
Deferred revenue, non-current (c)	14,070	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 nine months ended September 30, 2024 and 2023 that was included in the contract liability balance at the beginning of each year:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
Revenue recognized from contract liability balance at the beginning of the year (a)	$2,122	$2,216	$20,377	$19,950

(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 nine months ended September 30, 2024 and 2023:

Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
September 30, 2024
Pulpwood	$23,182	$1,318	$8,307	—	$358	—	$33,165
Sawtimber	21,034	24,378	49,571	—	8,253	—	103,236
Hardwood	1,136	—	—	—	—	—	1,136
Total Timber Sales	45,352	25,696	57,878	—	8,611	—	137,537
License Revenue, Primarily from Hunting	5,348	290	96	—	—	—	5,734
Land-Based Solutions (a)	2,767	10	—	—	—	—	2,777
Other Non-Timber/Carbon Credit Revenue	8,552	1,252	8,800	—	—	—	18,604
Agency Fee Income	—	—	—	—	280	—	280
Total Non-Timber Sales	16,667	1,552	8,896	—	280	—	27,395
Improved Development	—	—	—	11,999	—	—	11,999
Rural	—	—	—	13,766	—	—	13,766
Conservation Easement	—	—	—	1,101	—	—	1,101
Deferred Revenue/Other (b)	—	—	—	2,740	—	—	2,740
Total Real Estate Sales	—	—	—	29,606	—	—	29,606
Revenue from Contracts with Customers	62,019	27,248	66,774	29,606	8,891	—	194,538
Lease Revenue	—	—	—	455	—	—	455
Intersegment	—	—	—	—	88	(88)	—
Total Revenue	$62,019	$27,248	$66,774	$30,061	$8,979	($88)	$194,993
Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
September 30, 2023
Pulpwood	$25,514	$1,440	$6,507	—	$447	—	$33,908
Sawtimber	27,274	26,401	48,356	—	5,954	—	107,985
Hardwood	1,343	—	—	—	—	—	1,343
Total Timber Sales	54,131	27,841	54,863	—	6,401	—	143,236
License Revenue, Primarily from Hunting	7,133	439	90	—	—	—	7,662
Land-Based Solutions (a)	1,041	8	—	—	—	—	1,049
Other Non-Timber/Carbon Credit Revenue	1,668	1,037	15,482	—	—	—	18,187
Agency Fee Income	—	—	—	—	270	—	270
Total Non-Timber Sales	9,842	1,484	15,572	—	270	—	27,168
Improved Development	—	—	—	3,120	—	—	3,120
Unimproved Development	—	—	—	114	—	—	114
Rural	—	—	—	20,461	—	—	20,461
Timberland & Non-Strategic	—	—	—	1,055	—	—	1,055
Deferred Revenue/Other (b)	—	—	—	5,981	—	—	5,981
Total Real Estate Sales	—	—	—	30,731	—	—	30,731
Revenue from Contracts with Customers	63,973	29,325	70,435	30,731	6,671	—	201,135
Lease Revenue	—	—	—	444	—	—	444
Intersegment	—	—	—	—	111	(111)	—
Total Revenue	$63,973	$29,325	$70,435	$31,175	$6,782	($111)	$201,579

(a)    Consists primarily of sales from carbon capture and storage (“CCS”), solar and wind energy contracts.

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

Nine Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
September 30, 2024
Pulpwood	$73,141	$4,329	$25,113	—	$2,075	—	$104,658
Sawtimber	79,973	68,495	124,087	—	22,822	—	295,377
Hardwood	3,003	—	—	—	—	—	3,003
Total Timber Sales	156,117	72,824	149,200	—	24,897	—	403,038
License Revenue, Primarily From Hunting	15,907	515	221	—	—	—	16,643
Land-Based Solutions (a)	7,062	30	—	—	—	—	7,092
Other Non-Timber/Carbon Credit Revenue	12,236	3,354	16,835	—	—	—	32,425
Agency Fee Income	—	—	—	—	906	—	906
Total Non-Timber Sales	35,205	3,899	17,056	—	906	—	57,066
Improved Development	—	—	—	16,399	—	—	16,399
Rural	—	—	—	29,964	—	—	29,964
Timberland & Non-Strategic	—	—	—	16,111	—	—	16,111
Conservation Easement	—	—	—	1,101	—	—	1,101
Deferred Revenue/Other (b)	—	—	—	11,902	—	—	11,902
Total Real Estate Sales	—	—	—	75,477	—	—	75,477
Revenue from Contracts with Customers	191,322	76,723	166,256	75,477	25,803	—	535,581
Lease Revenue	—	—	—	1,119	—	—	1,119
Intersegment	—	—	—	—	232	(232)	—
Total Revenue	$191,322	$76,723	$166,256	$76,596	$26,035	($232)	$536,700
Nine Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Real Estate	Trading	Elim.	Total
September 30, 2023
Pulpwood	$76,152	$7,358	$20,953	—	$3,328	—	$107,791
Sawtimber	95,663	83,963	137,868	—	30,130	—	347,624
Hardwood	3,169	—	—	—	—	—	3,169
Total Timber Sales	174,984	91,321	158,821	—	33,458	—	458,584
License Revenue, Primarily from Hunting	17,475	780	212	—	—	—	18,467
Land-Based Solutions (a)	2,909	1,345	—	—	—	—	4,254
Other Non-Timber/Carbon Credit Revenue	8,757	2,615	16,405	—	—	—	27,777
Agency Fee Income	—	—	—	—	952	—	952
Total Non-Timber Sales	29,141	4,740	16,617	—	952	—	51,450
Improved Development	—	—	—	20,155	—	—	20,155
Unimproved Development	—	—	—	114	—	—	114
Rural	—	—	—	42,587	—	—	42,587
Timberland & Non-Strategic	—	—	—	2,947	—	—	2,947
Deferred Revenue/Other (b)	—	—	—	12,642	—	—	12,642
Total Real Estate Sales	—	—	—	78,445	—	—	78,445
Revenue from Contracts with Customers	204,125	96,061	175,438	78,445	34,410	—	588,479
Lease Revenue	—	—	—	1,047	—	—	1,047
Intersegment	—	—	—	—	357	(357)	—
Total Revenue	$204,125	$96,061	$175,438	$79,492	$34,767	($357)	$589,526

(a)    Consists primarily 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 nine months ended September 30, 2024 and 2023:

Three Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Trading	Total
September 30, 2024
Stumpage Pay-as-Cut	$20,907	—	—	—	$20,907
Stumpage Lump Sum	—	3,846	—	—	3,846
Total Stumpage	20,907	3,846	—	—	24,753
Delivered Wood (Domestic)	23,733	20,612	15,872	477	60,694
Delivered Wood (Export)	712	1,238	42,006	8,134	52,090
Total Delivered	24,445	21,850	57,878	8,611	112,784
Total Timber Sales	$45,352	$25,696	$57,878	$8,611	$137,537
September 30, 2023
Stumpage Pay-as-Cut	$25,454	—	—	—	$25,454
Stumpage Lump Sum	—	969	—	—	969
Total Stumpage	25,454	969	—	—	26,423
Delivered Wood (Domestic)	26,907	24,085	15,265	10	66,267
Delivered Wood (Export)	1,770	2,787	39,598	6,391	50,546
Total Delivered	28,677	26,872	54,863	6,401	116,813
Total Timber Sales	$54,131	$27,841	$54,863	$6,401	$143,236

Nine Months Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Trading	Total
September 30, 2024
Stumpage Pay-as-Cut	$80,531	$8	—	—	$80,539
Stumpage Lump Sum	—	7,381	—	—	7,381
Total Stumpage	80,531	7,389	—	—	87,920
Delivered Wood (Domestic)	70,851	61,513	39,368	1,945	173,677
Delivered Wood (Export)	4,735	3,922	109,832	22,952	141,441
Total Delivered	75,586	65,435	149,200	24,897	315,118
Total Timber Sales	$156,117	$72,824	$149,200	$24,897	$403,038
September 30, 2023
Stumpage Pay-as-Cut	$86,424	—	—	—	$86,424
Stumpage Lump Sum	387	1,592	—	—	1,979
Total Stumpage	86,811	1,592	—	—	88,403
Delivered Wood (Domestic)	81,757	80,249	39,419	501	201,926
Delivered Wood (Export)	6,416	9,480	119,402	32,957	168,255
Total Delivered	88,173	89,729	158,821	33,458	370,181
Total Timber Sales	$174,984	$91,321	$158,821	$33,458	$458,584