Organization, Consolidation and Presentation of Financial Statements Disclosure

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements Disclosure

1.   The condensed consolidated balance sheets as of March 31, 2013 and December 31, 2012 and the related condensed consolidated statements of comprehensive income and cash flows for the three-month periods ended March 31, 2013 and 2012 have been prepared by Pope Resources, A Delaware Limited Partnership (the “Partnership”), pursuant to the rules and regulations of the Securities and Exchange Commission. The condensed consolidated financial statements are unaudited, but, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments and accruals) necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The financial information as of December 31, 2012, is derived from the Partnership’s audited consolidated financial statements and notes thereto for the year ended December 31, 2012, and should be read in conjunction with such financial statements and notes. The results of operations for the interim period are not indicative of the results of operations that may be achieved for the entire fiscal year ending December 31, 2013.   Management has reclassified certain operating expenses for the quarter ended March 31, 2012 to costs of sales related to our Real Estate segment to conform to the current quarter presentation.  In December 2012, we changed the classification of certain Real Estate operating costs related to rental revenue to Real Estate cost of sales.  As such, we have reclassified $277,000 from operating expenses to cost of sales in the quarter ended March 31, 2012 to conform to the current quarter, with the reclassification having no impact on total expenses or income from operations.