The following tables reconcile internally reported income (loss) from operations to externally reported income (loss) from operations by business segment, for the three and six months ended June 30, 2013 and 2012:

	Fee Timber									Timberland
Three Months Ended	Pope Resources			ORM Timber			Total Fee			Management &			Real
June 30, (in thousands)	Timber			Funds			Timber			Consulting			Estate			Other			Consolidated
2013
Revenue internal	$	8,552		$	8,700		$	17,252		$	740		$	6,127		$	-		$	24,119
Eliminations		(140	)		-			(140	)		(740	)		(42	)		-			(922	)
Revenue external		8,412			8,700			17,112			-			6,085			-			23,197

Cost of sales		(3,499	)		(6,705	)		(10,204	)		-			(1,881	)		-			(12,085	)

Operating, general and
administrative expenses internal		(1,115	)		(1,297	)		(2,412	)		(637	)		(858	)		(1,268	)		(5,175	)
Eliminations		12			740			752			140			-			30			922
Operating, general and
administrative expenses external		(1,103	)		(557	)		(1,660	)		(497	)		(858	)		(1,238	)		(4,253	)

Income (loss) from operations
internal		3,938			698			4,636			103			3,388			(1,268	)		6,859
Eliminations		(128	)		740			612			(600	)		(42	)		30			-
Income (loss) from operations
external	$	3,810		$	1,438		$	5,248		$	(497	)	$	3,346		$	(1,238	)	$	6,859

2012
Revenue internal	$	11,767		$	5,819		$	17,586		$	612		$	352		$	-		$	18,550
Eliminations		(136	)		-			(136	)		(612	)		(12	)		-			(760	)
Revenue external		11,631			5,819			17,450			-			340			-			17,790

Cost of sales		(5,407	)		(4,947	)		(10,354	)		-			(347	)		-			(10,701	)

Operating, general and
administrative expenses internal		(1,113	)		(1,198	)		(2,311	)		(559	)		(13,125	)*		(1,004	)		(16,999	)
Eliminations		12			612			624			136			-			-			760
Operating, general and
administrative expenses external		(1,101	)		(586	)		(1,687	)		(423	)		(13,125	)*		(1,004	)		(16,239	)

Income (loss) from operations
internal		5,247			(326	)		4,921			53			(13,120	)		(1,004	)		(9,150	)
Eliminations		(124	)		612			488			(476	)		(12	)		-			-
Income (loss) from operations
external	$	5,123		$	286		$	5,409		$	(423	)	$	(13,132	)	$	(1,004	)	$	(9,150	)

*Includes $12.5 MM of environmental remediation expense

	Fee Timber									Timberland
Six Months Ended	Pope Resources			ORM Timber			Total			Management &			Real
June 30, (in thousands)	Timber			Funds			Fee Timber			Consulting			Estate			Other			Consolidated
2013
Revenue internal	$	19,757		$	14,078		$	33,835		$	1,413		$	6,444		$	-		$	41,692
Eliminations		(281	)		-			(281	)		(1,413	)		(83	)		-			(1,777	)
Revenue external		19,476			14,078			33,554			-			6,361			-			39,915

Cost of sales		(8,020	)		(10,760	)		(18,780	)		-			(2,169	)		-			(20,949	)

Operating, general and
administrative expenses internal		(2,147	)		(2,502	)		(4,649	)		(1,290	)		(1,697	)		(2,490	)		(10,126	)
Eliminations		24			1,413			1,437			281			-			59			1,777
Operating, general and
administrative expenses external		(2,123	)		(1,089	)		(3,212	)		(1,009	)		(1,697	)		(2,431	)		(8,349	)

Income (loss) from operations
internal		9,590			816			10,406			123			2,578			(2,490	)		10,617
Eliminations		(257	)		1,413			1,156			(1,132	)		(83	)		59			-
Income (loss) from operations
external	$	9,333		$	2,229		$	11,562		$	(1,009	)	$	2,495		$	(2,431	)	$	10,617

2012
Revenue internal	$	18,875		$	7,355		$	26,230		$	1,088		$	663		$	-		$	27,981
Eliminations		(275	)		-			(275	)		(1,088	)		(24	)		-			(1,387	)
Revenue external		18,600			7,355			25,955			-			639			-			26,594

Cost of sales		(8,352	)		(6,143	)		(14,495	)		-			(625	)		-			(15,120	)

Operating, general and
administrative expenses internal		(1,986	)		(2,002	)		(3,988	)		(1,082	)		(13,703	)*		(2,168	)		(20,941	)
Eliminations		24			1,088			1,112			275			-			-			1,387
Operating, general and
administrative expenses external		(1,962	)		(914	)		(2,876	)		(807	)		(13,703	)*		(2,168	)		(19,554	)

Income (loss) from operations
internal		8,537			(790	)		7,747			6			(13,665	)		(2,168	)		(8,080	)
Eliminations		(251	)		1,088			837			(813	)		(24	)		-			-
Income (loss) from operations
external	$	8,286		$	298		$	8,584		$	(807	)	$	(13,689	)	$	(2,168	)	$	(8,080	)

*Includes $12.5 MM of environmental remediation expense