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

	Fee Timber									Timberland
Three Months Ended	Pope Resources			ORM Timber			Total Fee			Management &			Real
September 30, (in thousands)	Timber			Funds			Timber			Consulting			Estate			Other			Consolidated
2013
Revenue internal	$	5,167		$	5,300		$	10,467		$	701		$	1,454		$	-		$	12,622
Eliminations		(168	)		-			(168	)		(701	)		(29	)		-			(898	)
Revenue external		4,999			5,300			10,299			-			1,425			-			11,724

Cost of sales		(2,374	)		(4,475	)		(6,849	)		-			(920	)		-			(7,769	)

Operating, general and
administrative expenses internal		(1,231	)		(1,386	)		(2,617	)		(649	)		(1,087	)		(1,030	)		(5,383	)
Eliminations		1			695			696			174			-			28			898
Operating, general and
administrative expenses external		(1,230	)		(691	)		(1,921	)		(475	)		(1,087	)		(1,002	)		(4,485	)

Income (loss) from operations
internal		1,562			(561	)		1,001			52			(553	)		(1,030	)		(530	)
Eliminations		(167	)		695			528			(527	)		(29	)		28			-
Income (loss) from operations
external	$	1,395		$	134		$	1,529		$	(475	)	$	(582	)	$	(1,002	)	$	(530	)

2012
Revenue internal	$	6,006		$	3,499		$	9,505		$	515		$	5,242		$	-		$	15,262
Eliminations		(140	)		-			(140	)		(515	)		(12	)		-			(667	)
Revenue external		5,866			3,499			9,365			-			5,230			-			14,595

Cost of sales		(2,797	)		(3,259	)		(6,056	)		-			(981	)		-			(7,037	)

Operating, general and
administrative expenses internal		(1,120	)		(1,061	)		(2,181	)		(512	)		(1,288	)		(832	)		(4,813	)
Eliminations		12			515			527			140			-			-			667
Operating, general and
administrative expenses external		(1,108	)		(546	)		(1,654	)		(372	)		(1,288	)		(832	)		(4,146	)

Income (loss) from operations
internal		2,089			(821	)		1,268			3			2,973			(832	)		3,412
Eliminations		(128	)		515			387			(375	)		(12	)		-			-
Income (loss) from operations
external	$	1,961		$	(306	)	$	1,655		$	(372	)	$	2,961		$	(832	)	$	3,412

	Fee Timber									Timberland
Nine Months Ended	Pope Resources			ORM Timber			Total Fee			Management &			Real
September 30, (in thousands)	Timber			Funds			Timber			Consulting			Estate			Other			Consolidated
2013
Revenue internal	$	24,924		$	19,378		$	44,302		$	2,114		$	7,898		$	-		$	54,314
Eliminations		(449	)					(449	)		(2,114	)		(112	)		-			(2,675	)
Revenue external		24,475			19,378			43,853			-			7,786			-			51,639

Cost of sales		(10,394	)		(15,235	)		(25,629	)		-			(3,089	)		-			(28,718	)

Operating, general and
administrative expenses internal		(3,378	)		(3,888	)		(7,266	)		(1,939	)		(2,784	)		(3,520	)		(15,509	)
Eliminations		25			2,108			2,133			455			-			87			2,675
Operating, general and
administrative expenses external		(3,353	)		(1,780	)		(5,133	)		(1,484	)		(2,784	)		(3,433	)		(12,834	)

Income (loss) from operations
internal		11,152			255			11,407			175			2,025			(3,520	)		10,087
Eliminations		(424	)		2,108			1,684			(1,659	)		(112	)		87			-
Income (loss) from operations
external	$	10,728		$	2,363		$	13,091		$	(1,484	)	$	1,913		$	(3,433	)	$	10,087

2012
Revenue internal	$	24,881		$	10,854		$	35,735		$	1,603		$	5,905		$	-		$	43,243
Eliminations		(415	)		-			(415	)		(1,603	)		(36	)		-			(2,054	)
Revenue external		24,466			10,854			35,320			-			5,869			-			41,189

Cost of sales		(11,149	)		(9,402	)		(20,551	)		-			(1,606	)		-			(22,157	)

Operating, general and
administrative expenses internal		(3,106	)		(3,063	)		(6,169	)		(1,594	)		(14,991	) *		(3,000	)		(25,754	)
Eliminations		36			1,603			1,639			415			-			-			2,054
Operating, general and
administrative expenses external		(3,070	)		(1,460	)		(4,530	)		(1,179	)		(14,991	)		(3,000	)		(23,700	)

Income (loss) from operations
internal		10,626			(1,611	)		9,015			9			(10,692	)		(3,000	)		(4,668	)
Eliminations		(379	)		1,603			1,224			(1,188	)		(36	)		-			-
Income (loss) from operations
external	$	10,247		$	(8	)	$	10,239		$	(1,179	)	$	(10,728	)	$	(3,000	)	$	(4,668	)

*Includes $12.5 MM of environmental remediation expense