ORM Timber Fund II, Inc. (Fund II), ORM Timber Fund III (REIT) Inc. (Fund III), and ORM Timber Fund IV LLC (Fund IV), collectively “the Funds”, were formed by Olympic Resource Management LLC (ORMLLC), a wholly owned subsidiary of the Partnership, for the purpose of raising capital to purchase timberlands. The objective of these Funds is to generate a return on investments through the acquisition, management, value enhancement, and sale of timberland properties. Each fund is organized to operate for a specific term from the end of its respective investment period; 10 years for each of Fund II and Fund III, and 15 years for Fund IV. Fund II, Fund III, and Fund IV are scheduled to terminate in March 2021, December 2025, and December 2034, respectively.

Pope Resources and ORMLLC together own equity interests totaling 20% of Fund II, 5% of Fund III, and 15% of Fund IV. The Funds are considered variable interest entities because their organizational and governance structures are the functional equivalent of a limited partnership. As the managing member of the Funds, the Partnership is the primary beneficiary of each of the Funds as it has the authority to direct the activities that most significantly impact their economic performance, as well as the right to receive benefits and the obligation to absorb losses that could potentially be significant to the Funds. Accordingly, the Funds are consolidated into the Partnership’s financial statements. The obligations of each of the Funds are non-recourse to the Partnership.

The assets and liabilities of the Funds as of March 31, 2020, and December 31, 2019, were as follows:



(in thousands)	March 31, 2020		December 31, 2019
Assets:
Cash	$	9,575	$	6,197
Contract assets	2,361		2,765
Other current assets	2,621		2,427
Total current assets	14,557		11,389
Properties and equipment, net of accumulated depreciation	348,256		355,162
Total assets	$	362,813	$	366,551
Liabilities and equity:
Current liabilities	$	3,913	$	3,747
Current portion of long-term debt	24,994		24,990
Total current liabilities	28,907		28,737
Long-term debt, net of unamortized debt issuance costs and current portion	32,347		32,345
Funds’ equity	301,559		305,469
Total liabilities and equity	$	362,813	$	366,551