Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 15, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | POPE | ||
Entity Registrant Name | POPE RESOURCES LTD PARTNERSHIP | ||
Entity Central Index Key | 784,011 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 4,362,224 | ||
Entity Public Float | $ 241,737,040 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Partnership cash | $ 1,788 | $ 1,871 |
ORM Timber Funds cash | 1,636 | 1,066 |
Cash | 3,424 | 2,937 |
Restricted cash | 1,860 | |
Total cash and restricted cash | 5,284 | 2,937 |
Accounts receivable, net | 6,427 | 4,381 |
Land and timber held for sale | 5,728 | 20,503 |
Prepaid expenses and other | 591 | 4,385 |
Total current assets | 18,030 | 32,206 |
Properties and equipment, at cost | ||
Timber and roads | 267,662 | 279,793 |
Timberland | 55,056 | 54,369 |
Land held for development | 19,311 | 24,390 |
Buildings and equipment, net of accumulated depreciation | 5,306 | 5,628 |
Total properties and equipment, at cost | 347,335 | 364,180 |
Other assets | 15,308 | 2,664 |
Total assets | 380,673 | 399,050 |
Current liabilities | ||
Accounts payable | 2,430 | 2,620 |
Accrued liabilities | 4,451 | 3,843 |
Current portion of long-term debt - Partnership | 123 | 5,119 |
Deferred revenue | 197 | 418 |
Current portion of environmental remediation liability | 2,160 | 8,650 |
Other current liabilities | 401 | 398 |
Total current liabilities | 9,762 | 21,048 |
Environmental remediation and other long-term liabilities | 2,957 | 4,247 |
Commitments and contingencies | ||
Partners’ capital | ||
General partners' capital (units issued and outstanding 2017 - 60; 2016 - 60) | 1,028 | 934 |
Limited partners' capital (units issued and outstanding 2017 - 4,251; 2016 - 4,255) | 63,519 | 58,199 |
Noncontrolling interests | 176,079 | 189,331 |
Total partners’ capital and noncontrolling interests | 240,626 | 248,464 |
Total liabilities, partners’ capital, and noncontrolling interests | 380,673 | 399,050 |
Partnership | ||
Current liabilities | ||
Current portion of long-term debt - Partnership | 123 | 5,119 |
Long-term debt, net of unamortized debt issuance costs and current portion | 70,037 | 68,023 |
Funds | ||
Current liabilities | ||
Current portion of long-term debt - Partnership | 0 | 0 |
Long-term debt, net of unamortized debt issuance costs and current portion | $ 57,291 | $ 57,268 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
General partners’ capital, units issued | 60 | 60 |
General partners’ capital, units outstanding | 60 | 60 |
Limited partners’ capital, units issued | 4,251 | 4,255 |
Limited partners’ capital, units outstanding | 4,251 | 4,255 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | |||
Revenue | $ 99,823 | $ 80,428 | $ 78,028 |
Cost of sales | |||
Cost of sales | (57,984) | (47,273) | (46,604) |
Operating expenses | |||
Operating expenses | (24,334) | (20,829) | (19,644) |
General & Administrative | (5,742) | (5,076) | (4,972) |
Gain (loss) on sale of timberland (Fee Timber) | 12,547 | 995 | (1,103) |
Operating expenses | (24,334) | (28,529) | (19,644) |
Operating income (loss) | |||
Operating income (loss) | 30,052 | 5,621 | 10,677 |
Other income (expense) | |||
Interest expense | (4,965) | (4,150) | (3,854) |
Interest capitalized to development projects | 491 | 733 | 860 |
Interest income | 3 | 11 | 24 |
Total other expense | (4,471) | (3,406) | (2,970) |
Income before income taxes | 25,581 | 2,215 | 7,707 |
Income tax expense | (1,176) | (252) | (207) |
Net and comprehensive income | 24,405 | 1,963 | 7,500 |
Net and comprehensive income attributable to unitholders | 17,891 | 5,942 | 10,943 |
Allocable to general partners | 250 | 83 | 153 |
Allocable to limited partners | $ 17,641 | $ 5,859 | $ 10,790 |
Basic and diluted earnings per unit attributable to unitholders (in dollars per share) | $ 4.10 | $ 1.35 | $ 2.51 |
Distributions per unit (in dollars per share) | $ 2.80 | $ 2.80 | $ 2.70 |
Fee Timber | |||
Revenue | |||
Revenue | $ 73,514 | $ 57,304 | $ 52,164 |
Cost of sales | |||
Cost of sales | (41,784) | (32,642) | (30,089) |
Operating expenses | |||
Operating expenses | (9,896) | (8,731) | (8,011) |
Environmental remediation (Real Estate) | 0 | ||
Gain (loss) on sale of timberland (Fee Timber) | 12,547 | 995 | (1,103) |
Operating income (loss) | |||
Operating income (loss) | 34,381 | 16,926 | 12,961 |
TIM | |||
Revenue | |||
Revenue | 9 | 8 | 0 |
Cost of sales | |||
Cost of sales | 0 | 0 | 0 |
Operating expenses | |||
Operating expenses | (3,188) | (2,628) | (2,625) |
Environmental remediation (Real Estate) | 0 | ||
Gain (loss) on sale of timberland (Fee Timber) | 0 | 0 | 0 |
Operating income (loss) | |||
Operating income (loss) | (3,179) | (2,620) | (2,625) |
Real Estate | |||
Revenue | |||
Revenue | 26,300 | 23,116 | 25,864 |
Cost of sales | |||
Cost of sales | (16,200) | (14,631) | (16,515) |
Operating expenses | |||
Operating expenses | (5,508) | (4,394) | (4,036) |
Real Estate | (5,508) | (4,394) | (4,036) |
Environmental remediation (Real Estate) | 0 | (7,700) | 0 |
Gain (loss) on sale of timberland (Fee Timber) | 0 | 0 | 0 |
Operating income (loss) | |||
Operating income (loss) | 4,592 | (3,609) | 5,313 |
ORM Timber Funds | |||
Other income (expense) | |||
Net and comprehensive (income) loss attributable to noncontrolling interests-ORM Timber Funds | (6,516) | 3,979 | 3,443 |
Real Estate | |||
Other income (expense) | |||
Net and comprehensive (income) loss attributable to noncontrolling interests-ORM Timber Funds | $ 2 | $ 0 | $ 0 |
Consolidated Statements of Part
Consolidated Statements of Partners' Capital - USD ($) | Total | Noncontrolling Interests | General Partners | Limited Partners |
Beginning balance at Dec. 31, 2014 | $ 227,629,000 | $ 163,413,000 | $ 1,003,000 | $ 63,213,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 7,500,000 | (3,443,000) | 153,000 | 10,790,000 |
Cash distributions | (21,143,000) | (9,435,000) | (163,000) | (11,545,000) |
Capital call | 47,983,000 | 47,983,000 | ||
Equity-based compensation | 864,000 | 12,000 | 852,000 | |
Excess tax benefit from equity-based compensation | 340,000 | |||
Indirect repurchase of units for minimum tax withholding | (107,000) | (1,000) | (106,000) | |
Ending balance at Dec. 31, 2015 | 263,066,000 | 198,518,000 | 1,009,000 | 63,539,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 1,963,000 | (3,979,000) | 83,000 | 5,859,000 |
Cash distributions | (17,385,000) | (5,208,000) | (170,000) | (12,007,000) |
Equity-based compensation | 919,000 | 13,000 | 906,000 | |
Excess tax benefit from equity-based compensation | 53,000 | 1,000 | 52,000 | |
Indirect repurchase of units for minimum tax withholding | (152,000) | (2,000) | (150,000) | |
Ending balance at Dec. 31, 2016 | 248,464,000 | 189,331,000 | 934,000 | 58,199,000 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net income (loss) | 24,405,000 | 6,514,000 | 250,000 | 17,641,000 |
Cash distributions | (43,118,000) | (30,903,000) | (171,000) | (12,044,000) |
Capital call | 11,137,000 | 11,137,000 | ||
Equity-based compensation | 1,128,000 | 16,000 | 1,112,000 | |
Unit issuances - distribution reinvestment plan | 9,000 | 9,000 | ||
Unit repurchases | (1,305,000) | (1,305,000) | ||
Excess tax benefit from equity-based compensation | 0 | |||
Indirect repurchase of units for minimum tax withholding | (94,000) | (1,000) | (93,000) | |
Ending balance at Dec. 31, 2017 | $ 240,626,000 | $ 176,079,000 | $ 1,028,000 | $ 63,519,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Cash received from customers | $ 97,665 | $ 79,428 | $ 76,827 |
Cash paid to suppliers and employees | (53,098) | (56,807) | (44,187) |
Interest received | 3 | 11 | 24 |
Interest paid, net of amounts capitalized | (4,603) | (3,216) | (3,097) |
Real Estate project expenditures | (7,588) | (13,989) | (9,052) |
Income taxes paid | (399) | (281) | (345) |
Net cash provided by operating activities | 31,980 | 5,146 | 20,170 |
Cash flows from investing activities: | |||
Maturity of short-term investments | 0 | 1,000 | |
Capital expenditures | (2,500) | (1,973) | (2,549) |
Proceeds from sale of fixed assets | 30 | 25 | 0 |
Proceeds from sale of timberland | 26,590 | 1,603 | 1,001 |
Investment in unconsolidated Real Estate joint venture | (5,790) | ||
Deposit for acquisition of timberland - Funds | (5,688) | ||
Acquisition of timberland - Partnership | (5,881) | (39,796) | (5,004) |
Acquisition of timberland - Funds | 0 | 0 | (50,556) |
Net cash provided by (used in) investing activities | 6,761 | (40,141) | (56,108) |
Cash flows from financing activities: | |||
Line of credit borrowings | 28,000 | 23,326 | 0 |
Line of credit repayments | (25,800) | (15,326) | 0 |
Repayment of long-term debt | (5,119) | (114) | (5,109) |
Proceeds from issuance of long-term debt | 0 | 38,000 | 0 |
Debt issuance costs | (104) | (176) | (20) |
Proceeds from unit issuances - distribution reinvestment plan | 9 | 0 | 0 |
Unit issuances - distribution reinvestment plan | 9 | ||
Unit repurchases | (1,305) | 0 | |
Payroll taxes paid on unit net settlements | (94) | (152) | (107) |
Excess tax benefit from equity-based compensation | 0 | 53 | 12 |
Cash distributions to unitholders | (12,215) | (12,177) | (11,708) |
Cash distributions - ORM Timber Funds, net of distributions to Partnership | (30,903) | (5,208) | (9,435) |
Net cash provided by (used in) financing activities | (36,394) | 28,226 | 21,616 |
Net increase (decrease) in cash and restricted cash | 2,347 | (6,769) | (14,322) |
Cash and restricted cash: | |||
Beginning of year | 2,937 | 9,706 | 24,028 |
End of year | 5,284 | 2,937 | 9,706 |
ORM Timber Funds | |||
Cash flows from financing activities: | |||
Capital call - ORM Timber Funds, net of Partnership contribution | 5,237 | 0 | 47,983 |
Real Estate | |||
Cash flows from financing activities: | |||
Capital call - ORM Timber Funds, net of Partnership contribution | $ 5,900 | $ 0 | $ 0 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Reconciliation of net income to net cash provide by operating activities) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of net income (loss) to net cash provided by operating activities: | |||
Net income | $ 24,405 | $ 1,963 | $ 7,500 |
Depletion | 19,187 | 12,621 | 9,900 |
Equity-based compensation | 1,128 | 919 | 864 |
Excess tax benefit from equity-based compensation | 0 | (53) | (12) |
Depreciation and amortization | 534 | 755 | 736 |
(Gain) loss on sale of timberland | (12,547) | (995) | 1,103 |
(Gain) loss on sale of property and equipment and other | 3 | (23) | 0 |
Deferred taxes, net | 288 | 67 | (121) |
Cost of land sold - Real Estate | 13,862 | 12,439 | 14,057 |
Increase (decrease) in cash from changes in operating accounts: | |||
Accounts receivable | (2,046) | (1,143) | (810) |
Prepaid expenses and other current assets | 3,574 | (3,575) | 1,462 |
Real estate project expenditures | (7,588) | (13,989) | (9,052) |
Accounts payable and accrued liabilities | 417 | 1,691 | (241) |
Deferred revenue | (222) | 141 | (390) |
Other current liabilities | 4 | 76 | 75 |
Environmental remediation | (7,791) | (3,991) | (4,890) |
Other noncurrent assets and liabilities | (1,228) | (1,757) | (11) |
Net cash provided by operating activities | $ 31,980 | $ 5,146 | $ 20,170 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of operations Pope Resources, A Delaware Limited Partnership is a publicly traded limited partnership engaged primarily in managing timber resources on its own properties as well as those owned by others. Pope Resources’ wholly-owned subsidiaries include the following: ORM, Inc., which is responsible for managing Pope Resources’ timber properties; Olympic Resource Management LLC (ORMLLC), which provides timberland management activities and is responsible for developing the timber fund business; Olympic Property Group I LLC, which manages the Port Gamble townsite and millsite together with land that is held as development property; and OPG Properties LLC, which owns land that is held as development property and holds other real estate investments. These consolidated financial statements include ORM Timber Fund II, Inc. (Fund II), ORM Timber Fund III, Inc. (Fund III), and ORM Timber Fund IV LLC (Fund IV, and collectively with Fund II and Fund III, the Funds). ORMLLC is the manager of and owns 1% of Funds II, III and IV. Pope Resources owns 19% of Fund II, 4% of Fund III, and 14% of Fund IV. The purpose of all three Funds is to invest in timberlands. See Note 2 for additional information. These consolidated financial statements also include OPG Ferncliff Investors LLC (Ferncliff Investors). OPG Properties LLC, through wholly-owned subsidiary OPG Ferncliff Management LLC (Ferncliff Management) owns 33.33% of Ferncliff Investors, which in turn holds a 50% interest in an unconsolidated real estate joint venture entity, Bainbridge Landing LLC. Ferncliff Management is the manager of Ferncliff Investors. See Note 4 for additional information. The Partnership operates in three business segments: Fee Timber, Timberland Investment Management, and Real Estate. Fee Timber represents the growing and harvesting of trees from properties owned by the Partnership and the Funds. Timberland Investment Management represents management, acquisition, disposition, and consulting services provided to third-party owners of timberland and provides management services to the Funds. Real Estate consists of obtaining and entitling properties that have been identified as having value as developed residential or commercial property and operating the Partnership’s existing commercial property in Kitsap County, Washington. Principles of consolidation The consolidated financial statements include the accounts of the Partnership, entities controlled by the Partnership, and variable interest entities where the Partnership or entities it controls have the authority to direct the activities that most significantly impact their economic performance. Intercompany balances and transactions, including operations related to the Funds, have been eliminated in consolidation. The wholly-owned subsidiaries, Funds, and Ferncliff Investors are consolidated into Pope Resources’ financial statements (see Notes 2 and 4). New accounting standards On May 28, 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 also included other guidance, including the presentation of a gain or loss recognized on the sale of a long-lived asset or a nonfinancial asset. ASU No. 2014-09 is effective for us on January 1, 2018. For most revenue from the Fee Timber segment, which consists of logs, timber deed sales, and commercial thinning, we have identified no change to the timing or amount of revenue recognized because contracts are legally enforceable, the transaction price is fixed and performance is completed at a point in time, typically when risk of loss and title passes to the customer. Similarly, we have identified no changes to the timing or amount of revenue recognized on our other revenue, which includes primarily royalties from gravel mines and quarries and land use permits. For the Real Estate segment, this new standard may result in accelerating the recognition of revenue for performance obligations that are satisfied over time, which generally consist of construction and landscaping activity in common areas completed after transaction closing. The Partnership will adopt this standard using the cumulative effect transition method applied to uncompleted contracts as of the date of adoption. Under this method, the cumulative effect of initially applying the standard is recorded as an adjustment to partners’ capital. The Partnership, however, had no uncompleted contracts at the date of adoption. Accordingly, the adoption of this standard will not have a significant effect on our consolidated financial statements. We will, however, have refinements to our controls over financial reporting as a result of this ASU and future periods will include expanded disclosures as required by the ASU. In February 2016, the FASB issued ASU 2016-02, Leases , which requires substantially all leases to be reflected on the balance sheet as a liability and a right-of-use asset. The ASU will replace existing lease accounting guidance in U.S. GAAP when it becomes effective on January 1, 2019, and the Partnership will adopt it at that time. The standard will be applied on a modified retrospective basis in which certain optional practical expedients may be applied. Due to the Partnership’s limited leasing activity, management does not expect the effect of this standard to be material to Partnership’s consolidated financial statements. Effective January 1, 2017, the Partnership adopted ASU 2016-09, which simplifies several aspects of accounting for share-based payment transactions, including income tax consequences, award classification, cash flows reporting, and forfeiture rate application. The adoption of this standard did not have a material impact on the Partnership’s consolidated financial statements. General partner The Partnership has two general partners: Pope MGP, Inc. and Pope EGP, Inc. In total, these two entities own 60,000 partnership units. The allocation of distributions, income and other capital related items between the general and limited partners is pro rata among all units outstanding. The managing general partner of the Partnership is Pope MGP, Inc. The Partnership has no directors. Instead, the board of directors of Pope MGP, Inc. serves in that capacity. Noncontrolling interests Noncontrolling interests represents the portion of net income and losses of the Funds attributable to third-party owners of the Funds and Ferncliff Investors. Noncontrolling interests represent 80% of Fund II, 95% of Fund III, 85% of Fund IV, and 66.67% of Ferncliff Investors ownership. To arrive at net and comprehensive income attributable to Partnership unitholders, the portion of the income attributable to these third-party investors is subtracted from net and comprehensive income or, in the case of a loss attributable to third-party investors, added back to net and comprehensive income. Significant estimates and concentrations in financial statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. Depletion Timber costs are combined into depletion pools based on how the tree farms are managed and on the common characteristics of the timber such as location and species mix. Each tree farm within the Funds is considered a separate depletion pool and timber harvested from the Funds’ tree farms is accounted for and depleted separately from timber harvested from the Partnership’s timberlands, which are considered one depletion pool. The applicable depletion rate is derived by dividing the aggregate cost of merchantable stands of timber, together with capitalized road expenditures, by the estimated volume of merchantable timber available for harvest at the beginning of that year. For purposes of the depletion calculation, merchantable timber is defined as timber that is equal to or greater than 35 years of age for all of the tree farms except California, for which merchantable timber is defined as timber with a diameter at breast height (DBH) of 16 inches or greater. The depletion rate, so derived and expressed in per MBF terms, is then multiplied by the volume harvested in a given period to calculate depletion expense for that period as follows: Depletion rate = Accumulated cost of timber and capitalized road expenditures Estimated volume of merchantable timber Purchased timberland cost allocation. When the Partnership or Funds acquire timberlands, a purchase price allocation is performed that allocates cost between the categories of merchantable timber, pre-merchantable timber, roads, and land based upon the relative fair values pertaining to each of the categories. Land value may include uses other than timberland including potential conservation easement (CE) sales and development opportunities. Cost of sales Cost of sales consists of the Partnership’s cost basis in timber (depletion expense), real estate, and other inventory sold, and direct costs incurred to make those assets saleable. Those direct costs include the expenditures associated with the harvesting and transporting of timber and closing costs incurred in land and lot sale transactions. Cost of sales also consists of those costs directly attributable to the Partnership’s rental activities. Restricted cash Restricted cash comprises capital contributed by third party owners of Ferncliff Investors that must be invested in an unconsolidated real estate joint venture entity. Like-kind exchanges In order to acquire and sell assets, primarily timberland and other real property, in a tax efficient manner, we sometimes utilize Internal Revenue Code (IRC) Section 1031 like-kind exchange transactions. There are two main types of like-kind exchange transactions: forward transactions, in which property is sold and the proceeds are reinvested by acquiring similar property; and reverse transactions, in which property is acquired and similar property is subsequently sold. We use qualified intermediaries to facilitate such transactions and proceeds from forward transactions are held by the intermediaries. Both types of transactions must be completed within prescribed periods under IRC 1031, generally 180 days. Any unused funds held by intermediaries at the expiration of these time periods revert to the Partnership. To the extent we have identified potential replacement properties to acquire, funds held by intermediaries are classified as non-current in other assets on the consolidated balance sheets. To the extent funds held by qualified intermediaries exceed the value of identified potential properties to acquire, the funds are included in prepaid expenses and other current assets. At December 31, 2017 , other assets included $598,000 held by like-kind exchange intermediaries. At December 31, 2016 , prepaid expenses and other current assets included $850,000 and other assets included $1.9 million held by like-kind exchange intermediaries. Also included in prepaid expenses and other current assets at December 31, 2016 , were $2.3 million held by intermediaries for completed forward exchanges that the Partnership received in January 2017. Concentration of credit risk Financial instruments that potentially subject the Partnership to concentrations of credit risk consist principally of accounts and notes receivable. The Partnership limits its credit exposure by considering the creditworthiness of potential customers and utilizing the underlying land sold as collateral on real estate contracts. The Partnership’s allowance for doubtful accounts is $1,000 and $8,000 at December 31, 2017 and 2016 , respectively. Income taxes The Partnership itself is not subject to income taxes, but its corporate subsidiaries, and those of the Funds, are subject to income taxes which are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Operating loss and tax credit carryforwards, if any, are also factored into the calculation of deferred tax assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Partnership has concluded that it is more likely than not that its deferred tax assets will be realizable and thus no valuation allowance has been recorded as of December 31, 2017 . This conclusion is based on anticipated future taxable income, the expected future reversals of existing taxable temporary differences, and tax planning strategies to generate taxable income, if needed. The Partnership will continue to reassess the need for a valuation allowance during each future reporting period. The Partnership is not aware of any tax exposure items as of December 31, 2017 and 2016 , where the Partnership’s tax position is not more likely than not to be sustained if challenged by the taxing authorities. The Partnership recognizes interest expense related to unrecognized tax benefits or underpayment of income taxes in interest expense and recognizes penalties in operating expenses. There have been no interest expense or penalties incurred for any of the periods presented. Land and timber held for sale and Land held for development Land and timber held for sale and Land held for development are recorded at cost, unless impaired. Costs of development, including interest, are capitalized for these projects and allocated to individual lots based upon their relative preconstruction fair value. This allocation of basis supports, in turn, the computation of those amounts reported as current versus long-term assets based on management’s expectation of when the sales will occur (Land and timber held for sale and Land held for development, respectively). As lot sales occur, the allocation of these costs becomes part of cost of sales attributed to individual lot sales. Costs associated with land including acquisition, project design, architectural costs, road construction, capitalized interest, and utility installation are accounted for as operating activities on our statement of cash flows. Those properties that are for sale, under contract, and for which the Partnership has an expectation they will be sold within 12 months are classified on the balance sheet as a current asset under “Land and timber held for sale”. The $5.7 million in land and timber held for sale at December 31, 2017 reflects our expectation of sales in 2018 of parcels comprising 19 acres from the Harbor Hill project in Gig Harbor, Washington, as well as three parcels comprising 20 acres in Kitsap County, Washington. Land and timber held for sale of $20.5 million as of December 31, 2016 reflected a 6,300 -acre tree farm sold by Fund II in January 2017 and sales that were expected in 2017 of parcels comprising 30 acres from the Harbor Hill project. Land held for development on our balance sheet represents the Partnership’s cost basis in land that has been identified as having greater value as development property rather than as timberland. Land development costs, including interest, clearly associated with development or construction of fully entitled projects are capitalized, whereas costs associated with projects that are in the entitlement phase are expensed. Interest capitalization ceases once projects reach the point of substantial completion or construction activity has been delayed intentionally. Timberland, timber and roads Timberland, timber and roads are recorded at cost. The Partnership capitalizes the cost of building permanent roads on the tree farms and expenses temporary roads and road maintenance. Timberland is not subject to depletion. Buildings and equipment Buildings and equipment depreciation is provided using the straight-line method over the estimated useful lives of the assets, which range from 3 to 39 years . Buildings and equipment are recorded at cost and consisted of the following as of December 31, 2017 and 2016 , (in thousands): Description 12/31/2017 12/31/2016 Buildings $ 9,437 $ 9,439 Equipment 3,039 3,239 Furniture and fixtures 663 663 Total $ 13,139 $ 13,341 Accumulated depreciation (7,833 ) (7,713 ) Net buildings and equipment $ 5,306 $ 5,628 Impairment of long-lived assets When facts and circumstances indicate the carrying value of properties may be impaired, an evaluation of recoverability is performed by comparing the currently recorded carrying value of the property to the projected future undiscounted cash flows of the same property or, in the case of land held for sale, fair market value less costs to sell. If it is determined that the carrying value of such assets may not be fully recoverable, we would recognize an impairment loss, adjusting for the difference between the carrying value and the estimated fair market value, and would recognize an expense in this amount against current operations. Deferred revenue Deferred revenue represents the unearned portion of cash collected. Deferred revenue of $197,000 at December 31, 2017 , reflects primarily the unearned portion of rental payments received on cell tower leases. The deferred revenue balance of $418,000 at December 31, 2016 , represents mostly deferred revenue associated with Real Estate sales recorded under the percentage of completion method and the unearned portion of rental payments received on cell tower leases. Revenue recognition Revenue on fee timber sales is recorded when title and risk of loss passes to the buyer, which typically occurs when delivered to the customer. Revenue on real estate sales is recorded on the date the sale closes, upon receipt of adequate down payment, and receipt of the buyer’s obligation to make sufficient continuing payments towards the purchase of the property, provided the Partnership has no continuing involvement with the real estate sold. When a real estate transaction is closed with obligations to complete infrastructure or other construction, revenue is recognized on a percentage of completion method by calculating a ratio of costs incurred to total costs expected. Revenue is deferred proportionately based on the remaining costs to satisfy the obligation. Timberland management fees and consulting service revenues are recognized as the related services are provided. Land and development rights or conservation easement (CE) sales The Partnership considers the sale of land and development rights, or conservation easements (CE’s), to be part of its normal operations and therefore recognizes revenue from such sales and cost of sales for the Partnership’s basis in the property sold. CE sales allow us to retain harvesting and other timberland management rights, but bar any future subdivision of or real estate development on the property. Cash generated from these sales is included in cash flows from operations on the Partnership’s statements of cash flows. The Partnership generated $2.1 million and $4.3 million from conservation easement sales in 2016 and 2015 , respectively. There were no conservation easement sales in 2017. Environmental remediation liabilities Environmental remediation liabilities have been evaluated using a combination of methods. The liability is estimated based on amounts included in construction contracts and estimates for construction contingencies, project management, and other professional fees. See Note 11 for further discussion of environmental remediation liabilities. Equity-based compensation The Partnership issues restricted units to certain employees, officers, and directors of the Partnership as part of their annual compensation. Restricted units are valued on the grant date at the market closing price of the partnership units on that date. The value of the restricted units is amortized to compensation expense on a straight-line basis during the vesting period which is generally four years . Grants to retirement-eligible individuals on the date of grant are expensed immediately. Income per partnership unit Basic and diluted net earnings per unit are calculated by dividing net income attributable to unitholders, adjusted for non-forfeitable distributions paid out to unvested restricted unitholders and Fund II and Fund III preferred shareholders, by the weighted average units outstanding during the period. The table below displays how we arrived at basic and diluted earnings per unit: Year Ended December 31, (in thousands, except per unit data) 2017 2016 2015 Net and comprehensive income attributable to unitholders $ 17,891 $ 5,942 $ 10,943 Less: Net and comprehensive income attributable to unvested restricted unitholders (133 ) (101 ) (103 ) Less: Dividends paid to Funds preferred shareholders (31 ) (31 ) (31 ) Net and comprehensive income attributable to unitholders for earnings per unit calculation $ 17,727 $ 5,810 $ 10,809 Basic and diluted weighted average units outstanding 4,323 4,313 4,298 Basic and diluted net earnings per unit $ 4.10 $ 1.35 $ 2.51 Fund II and Fund III preferred shares Fund II and Fund III issued 125 par $0.01 shares of its 12.5% Series A Cumulative Non-Voting Preferred Stock (Series A Preferred Stock) at $1,000 per share. Each holder of the Series A Preferred Stock is entitled to a liquidation preference of $1,000 per share. Dividends on each share of Series A Preferred Stock will accrue on a daily basis at the rate of 12.5% per annum. Upon a liquidation, the Series A Preferred Stock will be settled in cash and is not convertible into any other class or series of shares or Partnership units. The timing of such a redemption is controlled by the Funds. The maximum amount that each of the consolidated subsidiaries could be required to pay to redeem the instruments upon liquidation is $125,000 plus accrued but unpaid dividends. The Series A Preferred Stock is recorded within noncontrolling interests on the consolidated balance sheets and are considered participating securities for purposes of calculating earnings per unit. Fair value hierarchy We use a fair value hierarchy in accounting for certain nonfinancial assets and liabilities including long-lived assets (asset groups) measured at fair value for an impairment assessment. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: • Level 1-Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2-Inputs are: (a) quoted prices for similar assets or liabilities in an active market, (b) quoted prices for identical or similar assets or liabilities in markets that are not active, or (c) inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data. • Level 3-Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. |
ORM TIMBER FUND II, INC. (FUND
ORM TIMBER FUND II, INC. (FUND II), ORM TIMBER FUND III (REIT) INC. (FUND III), AND ORM TIMBER FUND IV (REIT) INC. (FUND IV) (COLLECTIVELY, “THE FUNDS”) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORM TIMBER FUND II, INC. (FUND II), ORM TIMBER FUND III (REIT) INC. (FUND III), AND ORM TIMBER FUND IV (REIT) INC. (FUND IV) (COLLECTIVELY, “THE FUNDS”) | ORM TIMBER FUND II, INC. (FUND II), ORM TIMBER FUND III (REIT) INC. (FUND III), AND ORM TIMBER FUND IV (REIT) INC. (FUND IV) (COLLECTIVELY, “THE FUNDS”) The Funds were formed by ORMLLC for the purpose of attracting 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 specified term from the end of its respective investment period; ten years for each of Fund II and Fund III, and fifteen years for Fund IV. Fund II is scheduled to terminate in March 2021 and Fund III is scheduled to terminate in December 2025 . Fund IV will terminate on the fifteenth anniversary of the end of its drawdown period. Fund IV’s drawdown period will end on the earlier of placement of all committed capital or December 31, 2019, subject to certain extension provisions. Together, Pope Resources and ORMLLC own 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 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 obligation to absorb losses that could potentially be significant to the Funds. Accordingly, the Funds are consolidated into the Partnership’s financial statements. Additionally, the obligations of each of the Funds do not have any recourse to the Partnership. The consolidated financial statements exclude management fees paid by the Funds to ORMLLC as they are eliminated in consolidation. See note 13 for a breakdown of operating results before and after such eliminations. The portion of these fees, among other items of income and expense, attributed to third-party investors is reflected as an adjustment to income in the Partnership’s Consolidated Statement of Comprehensive Income under the caption “Net (income) loss attributable to noncontrolling interests - ORM Timber Funds.” In the fourth quarter of 2015, Fund III acquired a 15,100 -acre tree farm in south Puget Sound, Washington, for $50.6 million . The purchase price was allocated $44.5 million to timber and roads, and $6.1 million to the underlying land. In January 2017, Fund II closed on the sale of one of its tree farms, located in northwestern Oregon, for $26.5 million . The Partnership’s share of the pretax profit or loss generated by this tree farm was a gain of $12.5 million and losses of $23,000 and $9,000 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. In January 2018, Fund IV closed on the acquisition of two tree farms, one in southwestern Oregon and one in south Puget Sound, Washington, for $33.5 million and $80.4 million , respectively. The partnership’s share of the combined purchase price is $17.0 million . At December 31, 2017, Fund IV had paid deposits of $5.7 million for these acquisitions, which are included in other assets. The Partnership’s consolidated balance sheets include Fund II, Fund III, and Fund IV assets and liabilities at December 31, 2017 , and Fund II and Fund III assets and liabilities at December 31, 2016 , which were as follows: (in thousands) 2017 2016 Cash $ 1,636 $ 1,066 Land and timber held for sale — 13,941 Other current assets 2,481 2,195 Total current assets 4,117 17,202 Properties and equipment, net of accumulated depreciation 235,046 249,197 Other long-term assets 5,683 — Total assets $ 244,846 $ 266,399 Current liabilities $ 2,862 $ 2,256 Long-term debt 57,291 57,268 Funds’ equity 184,693 206,875 Total liabilities and equity $ 244,846 $ 266,399 The table above includes management fees and other expenses payable to the Partnership of $657,000 and $691,000 as of December 31, 2017 and 2016 , respectively. These amounts are eliminated in the Partnership’s consolidated balance sheets. |
PARTNERSHIP TIMBERLAND ACQUISIT
PARTNERSHIP TIMBERLAND ACQUISITIONS | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
PARTNERSHIP TIMBERLAND ACQUISITIONS | PARTNERSHIP TIMBERLAND ACQUISITIONS In July 2016, the Partnership closed on the acquisition of a 7,324 -acre tree farm in western Washington for $ 32.0 million . It consisted of 6,746 owned acres and a timber deed on 578 acres that expires in 2051 . The purchase price was allocated $2.7 million to timberland and $29.3 million to timber and roads. In October 2016, the Partnership closed on two timberland acquisitions for a combined $6.7 million comprising 1,967 acres. The combined purchase price was allocated $719,000 to timberland and $6.0 million to roads and timber. The acquired sets of timberland are adjacent to the Partnership’s existing Washington State timberland holdings in Jefferson and Skamania counties. During 2017, the Partnership closed on several acquisitions of timberland in western Washington totaling 1,810 acres for $5.9 million . The aggregate purchase price was allocated $847,000 to land and $5.1 million to timber and roads. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
OTHER ASSETS | OTHER ASSETS Other assets consisted of the following at December 31: 2017 2016 Deferred tax assets, net $ 465 $ 753 Cash held by like-kind exchange intermediaries 598 1,910 Deposits for acquisitions of timberland 5,688 — Investment in Real Estate joint venture entity 5,895 — Note receivable 2,625 — Other 37 1 Total $ 15,308 $ 2,664 In 2017, the Partnership formed Ferncliff Management and Ferncliff Investors for the purpose of raising capital from third parties to invest in an unconsolicated real estate joint venture entity, Bainbridge Landing LLC, that is developing a 5 -acre parcel on Bainbridge Island, Washington into a multi-family community containing apartments, townhomes, a park, and other amenities. Sales of the townhomes are expected to begin in late 2018 and leasing of apartments in 2019. As described in Note 1, Ferncliff Management is the manager and 33.33% owner of Ferncliff Investors, with the remaining ownership interest held by third-party investors. Ferncliff Investors holds a 50% interest in Bainbridge Landing LLC that owns and is developing the property. Ferncliff Investors is considered a variable interest entity because its organizational and governance structure is the functional equivalent of a limited partnership. As the managing member of Ferncliff Investors, the Partnership, through Ferncliff Management, is the primary beneficiary of Ferncliff Investors as it has the authority to direct the activities that most significantly impact its economic performance, as well as the right to receive benefits and obligation to absorb losses that could potentially be significant to Ferncliff Investors. Accordingly, Ferncliff Investors is consolidated into the Partnership’s financial statements. Additionally, the obligations of Ferncliff Investors do not have any recourse to the Partnership. Bainbridge Landing LLC is considered a voting interests entity. Ferncliff Investors accounts for its interest in the joint venture entity under the equity method because neither it nor the other member can exercise control over Bainbridge Landing LLC. Under the equity method, Ferncliff Investors records its 50% share of the net income or loss of Bainbridge Landing LLC. Accordingly, the “Investment in real estate joint venture entity” item in the table above represents the combination of Ferncliff Investors’ total cash investment in the joint venture entity plus its cumulative 50% share of net income or loss. To date, this activity has been a loss and is included in operating expenses in the Real Estate segment. The portion of this loss attributed to third-party investors is reflected as an adjustment to income in the Partnership’s Consolidated Statement of Comprehensive Income under the caption “Net loss attributable to noncontrolling interests - Real Estate.” The note receivable included in other assets resulted from the sale of an 11 -acre parcel from the Partnership’s Harbor Hill project to the City of Gig Harbor for $3.5 million . The City of Gig Harbor paid $875,000 at closing and issued a promissory note for the remaining $2.6 million . The note is collateralized by the property, bears interest at 5.25% , and is due in three annual payments of principal and interest in January 2019, 2020, and 2021. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT At December 31, (in thousands) 2017 2016 Partnership debt: $20.0 million revolving line of credit with Northwest Farm Credit Services (NWFCS), variable interest based on LIBOR plus margin of 1.50% (2.9% at December 31, 2017) with quarterly interest-only payments and collateralized by timberlands (matures April 2020) $ 16,200 8,000 $31.0 million revolving line of credit facility with NWFCS, variable interest based on LIBOR plus margin of 1.85% (3.25% at December 31, 2017) with quarterly interest-only payments and collateralized by timberlands (matures December 2019 with option to convert to multiple term loans with ultimate maturities in July 2027) — 6,000 Mortgage payable to NWFCS, collateralized by Poulsbo headquarters property: Interest at 3.80%, monthly principal and interest payments (matures January 2023) 2,460 2,578 Mortgage payable to NWFCS, collateralized by Partnership timberlands, as follows: Seven-year tranche, interest at 4.85% with quarterly interest payments (matured July 2017) — 5,000 Ten-year tranche, interest at 6.40% with monthly interest payments (matures September 2019) 9,800 9,800 Fifteen-year tranche, interest at 6.05% with quarterly interest payments (matures July 2025) 10,000 10,000 Mortgage payable to NWFCS, collateralized by Partnership timberlands, as follows: Seven-year tranche, variable interest based on LIBOR plus margin of 2.20% (3.60% at December 31, 2017) with quarterly interest-only payments (matures July 2023) 10,000 10,000 Ten-year tranche, interest at 3.89% with quarterly interest payments (matures July 2026) 11,000 11,000 12-year tranche, interest at 4.13% with quarterly interest payments (matures July 2028) 11,000 11,000 Total Partnership debt 70,460 73,378 Less unamortized debt issuance costs (300 ) (236 ) Less current portion (123 ) (5,119 ) Long-term debt, less unamortized debt issuance costs and current portion - Partnership 70,037 68,023 ORM Timber Funds debt: Fund II Mortgages payable to MetLife, collateralized by Fund II timberlands with quarterly 4.85% interest rate tranche 11,000 11,000 3.84% interest rate tranche 14,000 14,000 Fund III mortgages payable to NWFCS, collateralized by Fund III timberlands 5.10% interest rate tranche (matures December 2023) 17,980 17,980 4.45% interest rate tranche (matures October 2024) 14,400 14,400 Total ORM Timber Funds debt 57,380 57,380 Less unamortized debt issuance costs (89 ) (112 ) Less current portion — — Long-term debt, less unamortized debt issuance costs and current portion - Funds $ 57,291 $ 57,268 The Partnership’s debt agreements have covenants which are measured either quarterly or annually. Among the covenants measured are an interest coverage ratio of 3 :1, a requirement that the Partnership not exceed a maximum debt-to-total-capitalization ratio of 30% , with total capitalization calculated using fair market (vs. carrying) value of timberland, roads and timber, and not exceed a maximum debt-to-appraised value of collateral of 50% . The Partnership is in compliance with these covenants as of December 31, 2017 . Fund II’s debt agreement contains a requirement to maintain a loan-to-value ratio of less than 50% , with the denominator defined as fair market value. Fund II is in compliance with this covenant as of December 31, 2017 . Fund III’s debt agreement contains a requirement to maintain a minimum debt coverage ratio and a loan-to-value ratio of less than 50% , with the denominator defined as fair market value. Fund III is in compliance with this covenant as of December 31, 2017 . At December 31, 2017 , principal payments on long-term debt for the next five years and thereafter are due as follows (in thousands): Partnership Funds 2018 $ 123 $ — 2019 9,928 — 2020 16,333 25,000 2021 138 — 2022 143 — Thereafter 43,795 32,380 Total $ 70,460 $ 57,380 Each of the Partnership’s and Fund III’s debt arrangements with NWFCS includes an annual rebate of interest expense (patronage). Interest expense was reduced by $1.0 million , $810,000 and $478,000 in 2017 , 2016 , and 2015 , respectively, which reflects estimated patronage to be refunded in the following year with the related receivable reflected in accounts receivable. Accrued interest relating to all debt instruments was $1.3 million at December 31, 2017 and 2016 and is included in accrued liabilities. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The Partnership’s consolidated financial instruments include cash and accounts receivable, for which the carrying amount of each represents fair value based on current market interest rates or their short-term nature. Carrying amounts of contracts receivable also approximate fair value given the current market interest rates. The fair value of the Partnership’s and Funds’ combined fixed-rate debt, having a carrying value of $101.6 million and $106.8 million as of December 31, 2017 and 2016 , respectively, has been estimated based on current interest rates for similar financial instruments, Level 2 inputs in the Fair Value Hierarchy, to be approximately $104.6 million and $111.0 million , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Partnership itself is not subject to income taxes. Instead, partners are taxed on their share of the Partnership’s taxable income, whether or not cash distributions are paid. The Partnership’s and Funds’ corporate subsidiaries, however, are subject to income taxes. The following tables provide information on the impact of income taxes in taxable subsidiaries. Consolidated Partnership income (loss) is reconciled to income (loss) before income taxes in corporate subsidiaries for the years ended December 31 as follows: (in thousands) 2017 2016 2015 Income before income taxes $ 25,581 $ 2,215 $ 7,707 Income in entities that pass-through pre-tax earnings to the partners 23,089 1,500 7,203 Income subject to income taxes $ 2,492 $ 715 $ 504 The provision for income taxes relating to corporate subsidiaries of the Partnership and Funds consist of the following income tax benefit (expense) for each of the years ended December 31: (in thousands) 2017 2016 2015 Current $ (888 ) $ (185 ) $ (328 ) Deferred (288 ) (67 ) 121 Total $ (1,176 ) $ (252 ) $ (207 ) Included in the deferred income tax expense for 2017 and 2016 are $109,000 and $115,000 related to the utilization of net operating loss carryforwards. Included in the deferred tax benefit for 2015 was a benefit of $71,000 related to net operating losses. The Partnership also recorded excess tax benefits from equity-based compensation of $53,000 and $340,000 for the years ended December 31, 2016 and 2015 , respectively, to partners’ capital. There was no excess tax benefit recorded for 2017 as a result of the adoption of ASU 2016-09. A reconciliation between the federal statutory tax rate and the Partnership’s effective tax rate is as follows for each of the years ended December 31: 2017 2016 2015 Statutory tax on income 34 % 34 % 34 % Income from entities that pass-through pre-tax earnings to the partners (30 )% (23 )% (31 )% Effect on deferred tax assets of change in income tax rate 1 % — % — % Effective income tax rate 5 % 11 % 3 % The Tax Cuts and Jobs Act passed by Congress in December 2017 reduced the corporate income tax rate to 21% from 34%. This had the impact of decreasing deferred tax assets by $264,000 and increasing the 2017 effective income tax rate by 1% . The net deferred tax assets are included in other assets on the consolidated balance sheets and are comprised of the following: (in thousands) 2017 2016 2015 Compensation-related accruals $ 359 $ 456 $ 421 Net operating loss carryforwards 123 284 399 Depreciation 15 16 (16 ) Other (32 ) (3 ) 16 Total $ 465 $ 753 $ 820 The federal net operating loss carryforwards in the table above expire in 2033 through 2035 . |
UNIT INCENTIVE PLAN
UNIT INCENTIVE PLAN | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
UNIT INCENTIVE PLAN | UNIT INCENTIVE PLAN One of the two components of a management incentive compensation program adopted in 2010 (2010 Incentive Compensation Program) is the Performance Restricted Unit (PRU) plan which includes both an equity and cash component. Compensation expense relating to the equity component is recognized over a 4 -year future service period. On the date of grant, the restricted units are owned by the employee, officer, or director of the Partnership, subject to a trading restriction that is in effect during the vesting period. As of December 31, 2017 , total compensation expense not yet recognized related to non-vested awards was $1.1 million with a weighted average 21 months remaining to vest. The second component of the incentive compensation program is the Long-Term Incentive Plan (LTIP), which is paid in cash. The LTIP awards contain a feature whereby the award amount is based upon the Partnership’s total shareholder return (TSR) as compared to TSR’s of a benchmark peer group of companies, measured over a rolling three -year performance period. The component based on relative TSR requires the Partnership’s projected cash payout for future performance cycles to be re-measured quarterly based upon the Partnership’s projected relative TSR ranking, using a Monte Carlo simulation model. Starting in 2016, directors may elect to receive all or a portion of their quarterly board compensation in the form of unrestricted units rather than cash. Such units are included in equity compensation expense. During 2017 and 2016, 2,213 and 1,794 unrestricted units, respectively, were granted to directors in payment of their board compensation. Total equity compensation expense was $1.1 million , $919,000 and $864,000 for 2017 , 2016 and 2015 , respectively. As of December 31, 2017 , accrued liabilities included $1.3 million relating to the 2010 Incentive Compensation Program, with $426,000 of that total attributable to the cash component of the PRU and the balance of $908,000 attributable to the LTIP. This compares with December 31, 2016 , when accrued liabilities included $1.5 million , with $425,000 related to the cash-payout component of the PRU and the balance of $1.0 million attributable to the LTIP. The Partnership’s 2005 Unit Incentive Plan (the 2005 Plan) authorized the granting of nonqualified equity compensation to employees, officers, and directors of the Partnership and provides a one-way linkage to the 2010 Incentive Compensation Program because it (2005 Plan) established the formal framework by which unit grants, options, etc., can be issued. The 2010 Incentive Compensation Program does not affect the existence or availability of the 2005 Unit Incentive Plan or change its terms. Upon the vesting of restricted units, grantees have the choice of tendering back units to pay for their minimum tax withholdings. A total of 1,105,815 units have been authorized for issuance under the 2005 Plan of which there are 873,522 units authorized but unissued as of December 31, 2017 . The Human Resources Committee makes awards of restricted units to certain employees, plus the officers and directors of the Partnership and its subsidiaries. The restricted unit grants vest over four years and are compensatory in nature. Restricted unit awards entitle the recipient to full distribution rights during the vesting period, and thus are considered participating securities, but are restricted from disposition and may be forfeited until the units vest. Restricted unit activity for the three years ended December 31, 2017 was as follows: Units Weighted Avg Grant Date Fair Value ($) Outstanding December 31, 2014 41,427 55.23 Grants 12,050 62.14 Vested (15,729 ) 49.39 Tendered back to pay tax withholding (1,701 ) 50.33 Outstanding December 31, 2015 36,047 59.96 Grants 15,016 64.67 Vested (12,789 ) 55.97 Forfeited (436 ) 62.49 Tendered back to pay tax withholding (2,345 ) 57.41 Outstanding December 31, 2016 35,493 59.96 Grants 20,893 66.10 Vested (14,190 ) 66.48 Forfeited (1,550 ) 65.02 Tendered back to pay tax withholding (1,432 ) 65.65 Outstanding December 31, 2017 39,214 64.62 |
UNIT REPURCHASE PLAN AND DISTRI
UNIT REPURCHASE PLAN AND DISTRIBUTION REINVESTMENT PLAN | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
UNIT REPURCHASE PLAN AND DISTRIBUTION REINVESTMENT PLAN | UNIT REPURCHASE PLAN AND DISTRIBUTION REINVESTMENT PLAN In May 2017, the Partnership adopted a unit repurchase plan under Rule 10b5-1 of the Securities Exchange Act of 1934 and extended and expanded the plan on December 7, 2017. The plan allows for the repurchase of units with an aggregate value of up to $2.5 million through December 7, 2018. The Partnership repurchased 18,101 units with an aggregate value of $1.3 million during 2017. In June 2017, the Partnership adopted a Distribution Reinvestment Plan (DRP) under which unitholders may elect to reinvest their cash distributions to acquire newly issued units. The Partnership has registered 225,000 units for issuance under the DRP. The Partnership issued 122 units under the DRP during 2017. |
EMPLOYEE BENEFITS
EMPLOYEE BENEFITS | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS As of December 31, 2017 , all employees of the Partnership and its subsidiaries are eligible to receive benefits under a defined contribution plan. During the years 2015 through 2017 the Partnership matched 50% of employees’ contributions up to 8% of an individual’s compensation. The Partnership’s contributions to the plan amounted to $195,000 , $182,000 , and $191,000 for the years ended December 31, 2017 , 2016 , and 2015 , respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Environmental remediation The Partnership has an accrual for estimated environmental remediation costs of $5.0 million and $12.8 million as of December 31, 2017 and 2016 , respectively. The environmental remediation liability represents management’s best estimate of payments to be made to monitor and remedy certain areas in and around the townsite/millsite of Port Gamble. In December of 2013, a consent decree (CD) and Clean-up Action Plan (CAP) related to Port Gamble were finalized with the Washington State Department of Ecology (DOE) and filed with Kitsap County Superior Court. Pursuant to the CD and CAP, an engineering design report (EDR) was submitted to DOE in November 2014, followed by other supplemental materials establishing our proposed means for complying with the CAP. The EDR was finalized in the summer of 2015 and, in the third quarter of 2015, the Partnership selected a contractor to complete the remediation work. Construction activity commenced in late September 2015. The required in-water construction activity was completed in January 2017. By the end of the third quarter of 2017, the dredged sediments were moved from the millsite to their permanent storage location on property owned by the Partnership a short distance from the town of Port Gamble. In addition, testing was performed in 2017 to refine the scope of the cleanup on the millsite, which management expects will be substantially completed in 2018. This will be followed by a period of monitoring the conditions in Port Gamble Bay, on the millsite, and at the permanent storage location of the dredged sediments. In the fourth quarter of 2016, areas were encountered that contained a greater number of pilings and a higher volume of wood waste than was anticipated, requiring additional cleanup activity. In early 2017, management decided to use property owned by the Partnership a short distance from the town of Port Gamble as the primary permanent storage location for the dredged sediments rather than leaving them on the millsite as planned previously. Management also reassessed its estimates of long-term monitoring costs, taking into account the higher volume of material and the new expected storage location for the sediments. Finally, management updated its estimates for consulting and professional fees to address the natural resource damages claim associated with the project. The combination of these factors resulted in the Partnership recording a $7.7 million increase in its liability at December 31, 2016. The environmental liability at December 31, 2017 is comprised of $2.2 million that the Partnership expects to expend in the next 12 months and $2.8 million thereafter. It is reasonably possible that the natural resource damages component of the liability may increase. Changes in the environmental liability for the last three years are as follows: (in thousands) Balances at the Beginning of the Period Additions to Accrual Expenditures for Remediation Balance at Period-end Year ended December 31, 2015 $ 21,651 $ — $ 4,890 $ 16,761 Year ended December 31, 2016 16,761 7,700 11,691 12,770 Year ended December 31, 2017 $ 12,770 $ — $ 7,791 $ 4,979 Performance bonds In the ordinary course of business, and as part of the entitlement and development process, the Partnership is required to provide performance bonds to ensure completion of certain public facilities. The Partnership had performance bonds of $14.6 million and $10.4 million outstanding at December 31, 2017 and 2016 , respectively. The bonds relate primarily to development activity in connection with pending and completed sales from our Harbor Hill project in Gig Harbor. Supplemental Employee Retirement Plan The Partnership has a supplemental employee retirement plan for a retired employee. The plan provides for a retirement income of 70% of his base salary at retirement after taking into account both 401(k) and Social Security benefits with a fixed payment set at $25,013 annually. The recorded balance of the projected liability was $136,000 and $126,000 as of December 31, 2017 and 2016 , respectively. Contingencies The Partnership may, from time to time, be a defendant in various lawsuits arising in the ordinary course of business. Management believes Partnership losses related to such lawsuits, if any, will not have a material adverse effect to the Partnership’s consolidated financial condition or results of operations or cash flows. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Pope MGP, Inc. is the managing general partner of the Partnership and receives an annual management fee of $150,000 . |
SEGMENT AND MAJOR CUSTOMER INFO
SEGMENT AND MAJOR CUSTOMER INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT AND MAJOR CUSTOMER INFORMATION | SEGMENT AND MAJOR CUSTOMER INFORMATION The Partnership’s operations are classified into three segments: Fee Timber, Timberland Investment Management (TIM), and Real Estate. The Fee Timber segment consists of the harvest and sale of timber from both the Partnership’s 118,000 acres of fee timberland in Washington and the Funds’ 88,000 acres in Washington, Oregon, and California. The TIM segment provides investment management, disposition, and technical forestry services in connection with 31,000 acres for Fund II and 57,000 acres for Fund III. The Real Estate segment’s operations consist of management of development properties and the rental of residential and commercial properties in Port Gamble and Poulsbo, Washington. Real Estate manages a portfolio of 2,100 acres of higher-and-better-use properties as of December 31, 2017 . All of the Partnership’s real estate activities are presently in the state of Washington. For the year ended December 31, 2017 , the Partnership had one customer that represented 12% and another that represented 11% of consolidated revenue. For the year ended December 31, 2016 the Partnership had one customer that represented 17% of consolidated revenue. In 2015 , the Partnership had no customers that represented over 10% of consolidated revenue. Identifiable assets are those used exclusively in the operations of each reportable segment or those allocated when used jointly. The Partnership does not allocate cash, accounts receivable, certain prepaid expenses, or the cost basis of the Partnership’s administrative office for purposes of evaluating segment performance by the chief operating decision maker. Details of the Partnership’s operations by business segment for the years ended December 31 are as follows: (in thousands) Fee Timber Real 2017 Partnership Funds Combined TIM Estate Other Consolidated Revenue internal $ 40,004 $ 33,842 $ 73,846 $ 3,377 $ 26,737 $ — $ 103,960 Eliminations (332 ) — (332 ) (3,368 ) (437 ) — (4,137 ) Revenue external 39,672 33,842 73,514 9 26,300 — 99,823 Cost of sales (14,874 ) (26,910 ) (41,784 ) — (16,200 ) — (57,984 ) Operating, general and administrative expenses internal (6,177 ) (7,261 ) (13,438 ) (3,593 ) (5,594 ) (5,846 ) (28,471 ) Eliminations 174 3,368 3,542 405 86 104 4,137 Operating, general and administrative expenses external (6,003 ) (3,893 ) (9,896 ) (3,188 ) (5,508 ) (5,742 ) (24,334 ) Gain (loss) on sale of timberland — 12,547 12,547 — — — 12,547 Income (loss) from operations internal 18,953 12,218 31,171 (216 ) 4,943 (5,846 ) 30,052 Eliminations (158 ) 3,368 3,210 (2,963 ) (351 ) 104 — Income (loss) from operations external $ 18,795 $ 15,586 $ 34,381 $ (3,179 ) $ 4,592 $ (5,742 ) $ 30,052 Fee Timber Real 2016 Partnership Funds Combined TIM Estate Other Consolidated Revenue internal $ 36,478 $ 21,029 $ 57,507 $ 3,275 $ 23,419 $ — $ 84,201 Eliminations (203 ) — (203 ) (3,267 ) (303 ) — (3,773 ) Revenue external 36,275 21,029 57,304 8 23,116 — 80,428 Cost of sales (15,497 ) (17,145 ) (32,642 ) — (14,631 ) — (47,273 ) Operating, general and administrative expenses internal (6,152 ) (5,974 ) (12,126 ) (2,888 ) (4,441 ) (5,147 ) (24,602 ) Eliminations 128 3,267 3,395 260 47 71 3,773 Operating, general and administrative expenses external (6,024 ) (2,707 ) (8,731 ) (2,628 ) (4,394 ) (5,076 ) (20,829 ) Environmental remediation — — — — (7,700 ) — (7,700 ) Gain (loss) on sale of timberland 769 226 995 — — — 995 Income (loss) from operations internal 15,598 (1,864 ) 13,734 387 (3,353 ) (5,147 ) 5,621 Eliminations (75 ) 3,267 3,192 (3,007 ) (256 ) 71 — Income (loss) from operations external $ 15,523 $ 1,403 $ 16,926 $ (2,620 ) $ (3,609 ) $ (5,076 ) $ 5,621 Fee Timber Real 2015 Partnership Funds Combined TIM Estate Other Consolidated Revenue internal $ 29,257 $ 23,250 $ 52,507 $ 2,235 $ 26,007 $ — $ 80,749 Eliminations (343 ) — (343 ) (2,235 ) (143 ) — (2,721 ) Revenue external 28,914 23,250 52,164 — 25,864 — 78,028 Cost of sales (11,875 ) (18,214 ) (30,089 ) — (16,515 ) — (46,604 ) Operating, general and administrative expenses internal (5,387 ) (4,874 ) (10,261 ) (2,953 ) (4,056 ) (5,095 ) (22,365 ) Eliminations 20 2,230 2,250 328 20 123 2,721 Operating, general and administrative expenses external (5,367 ) (2,644 ) (8,011 ) (2,625 ) (4,036 ) (4,972 ) (19,644 ) Gain (loss) on sale of timberland — (1,103 ) (1,103 ) — — — (1,103 ) Income (loss) from operations internal 11,995 (941 ) 11,054 (718 ) 5,436 (5,095 ) 10,677 Eliminations (323 ) 2,230 1,907 (1,907 ) (123 ) 123 — Income (loss) from operations external $ 11,672 $ 1,289 $ 12,961 $ (2,625 ) $ 5,313 $ (4,972 ) $ 10,677 (in thousands) 2017 2016 2015 Depreciation, Amortization and Depletion Fee Timber-Partnership $ 4,122 $ 3,771 $ 2,174 Fee Timber-Funds 15,192 9,095 8,044 Fee Timber-Combined 19,314 12,866 10,218 Timberland Investment Management 32 33 18 Real Estate 281 388 299 G&A 94 89 101 Total $ 19,721 $ 13,376 $ 10,636 Assets Fee Timber-Partnership $ 91,206 $ 87,419 $ 49,499 Fee Timber-Funds 244,846 266,401 275,786 Fee Timber-Combined 336,052 353,820 325,285 Timberland Investment Management 83 325 182 Real Estate 39,420 38,988 33,983 G&A 5,118 5,917 10,606 Total $ 380,673 $ 399,050 $ 370,056 Capital and Land Expenditures Fee Timber-Partnership $ 7,168 $ 40,745 $ 5,877 Fee Timber-Funds 6,808 859 51,854 Fee Timber-Combined 13,976 41,604 57,731 Timberland Investment Management 32 13 69 Real Estate project expenditures 7,588 13,993 9,631 Real Estate-other 2 128 225 G&A 58 20 79 Total $ 21,656 $ 55,758 $ 67,735 (in thousands) 2017 2016 2015 Revenue by product/service Domestic forest products $ 56,657 $ 47,255 $ 41,636 Export forest products, indirect 16,857 10,049 10,528 Homes, lots, and undeveloped acreage 19,913 17,031 17,797 Conservation easements and land sales 5,056 4,440 6,815 Rentals and other Real Estate 1,331 1,645 1,252 Fees for service 9 8 — Total $ 99,823 $ 80,428 $ 78,028 |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) | QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (in thousands, except per unit amounts) Revenue Income (loss) from operations Net and comprehensive income (loss) attributable to unitholders Basic and diluted earnings (loss) per unit 2017 First quarter $ 17,345 $ 12,684 $ 3,370 $ 0.77 Second quarter 15,891 993 158 0.03 Third quarter 18,803 1,805 1,658 0.38 Fourth quarter 47,784 14,570 12,705 2.92 2016 First quarter $ 11,069 $ (822 ) $ (1,034 ) $ (0.25 ) Second quarter 12,713 142 436 0.09 Third quarter 13,178 1,985 1,970 0.45 Fourth quarter 43,468 4,316 4,571 1.05 Quarterly fluctuations in data result from the addition and/or deferral of harvest volumes as well as the timing of real estate sales and environmental remediation charges, as disclosed in our quarterly filings. Management considered the disclosure requirements of Item 302(a)(3) and does not note any extraordinary, unusual, or infrequently occurring items except for the $7.7 million environmental remediation charge recorded in the fourth quarter of 2016 and the sale of one of Fund II’s tree farms for $26.5 million , with a resulting gain of $12.5 million , in the first quarter of 2017. |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of operations | Nature of operations Pope Resources, A Delaware Limited Partnership is a publicly traded limited partnership engaged primarily in managing timber resources on its own properties as well as those owned by others. Pope Resources’ wholly-owned subsidiaries include the following: ORM, Inc., which is responsible for managing Pope Resources’ timber properties; Olympic Resource Management LLC (ORMLLC), which provides timberland management activities and is responsible for developing the timber fund business; Olympic Property Group I LLC, which manages the Port Gamble townsite and millsite together with land that is held as development property; and OPG Properties LLC, which owns land that is held as development property and holds other real estate investments. These consolidated financial statements include ORM Timber Fund II, Inc. (Fund II), ORM Timber Fund III, Inc. (Fund III), and ORM Timber Fund IV LLC (Fund IV, and collectively with Fund II and Fund III, the Funds). ORMLLC is the manager of and owns 1% of Funds II, III and IV. Pope Resources owns 19% of Fund II, 4% of Fund III, and 14% of Fund IV. The purpose of all three Funds is to invest in timberlands. See Note 2 for additional information. These consolidated financial statements also include OPG Ferncliff Investors LLC (Ferncliff Investors). OPG Properties LLC, through wholly-owned subsidiary OPG Ferncliff Management LLC (Ferncliff Management) owns 33.33% of Ferncliff Investors, which in turn holds a 50% interest in an unconsolidated real estate joint venture entity, Bainbridge Landing LLC. Ferncliff Management is the manager of Ferncliff Investors. See Note 4 for additional information. The Partnership operates in three business segments: Fee Timber, Timberland Investment Management, and Real Estate. Fee Timber represents the growing and harvesting of trees from properties owned by the Partnership and the Funds. Timberland Investment Management represents management, acquisition, disposition, and consulting services provided to third-party owners of timberland and provides management services to the Funds. Real Estate consists of obtaining and entitling properties that have been identified as having value as developed residential or commercial property and operating the Partnership’s existing commercial property in Kitsap County, Washington. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include the accounts of the Partnership, entities controlled by the Partnership, and variable interest entities where the Partnership or entities it controls have the authority to direct the activities that most significantly impact their economic performance. Intercompany balances and transactions, including operations related to the Funds, have been eliminated in consolidation. The wholly-owned subsidiaries, Funds, and Ferncliff Investors are consolidated into Pope Resources’ financial statements (see Notes 2 and 4). |
New accounting standards | New accounting standards On May 28, 2014, the Financial Accounting Standards Board (FASB) issued ASU No. 2014-09, Revenue from Contracts with Customers , which requires an entity to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 also included other guidance, including the presentation of a gain or loss recognized on the sale of a long-lived asset or a nonfinancial asset. ASU No. 2014-09 is effective for us on January 1, 2018. For most revenue from the Fee Timber segment, which consists of logs, timber deed sales, and commercial thinning, we have identified no change to the timing or amount of revenue recognized because contracts are legally enforceable, the transaction price is fixed and performance is completed at a point in time, typically when risk of loss and title passes to the customer. Similarly, we have identified no changes to the timing or amount of revenue recognized on our other revenue, which includes primarily royalties from gravel mines and quarries and land use permits. For the Real Estate segment, this new standard may result in accelerating the recognition of revenue for performance obligations that are satisfied over time, which generally consist of construction and landscaping activity in common areas completed after transaction closing. The Partnership will adopt this standard using the cumulative effect transition method applied to uncompleted contracts as of the date of adoption. Under this method, the cumulative effect of initially applying the standard is recorded as an adjustment to partners’ capital. The Partnership, however, had no uncompleted contracts at the date of adoption. Accordingly, the adoption of this standard will not have a significant effect on our consolidated financial statements. We will, however, have refinements to our controls over financial reporting as a result of this ASU and future periods will include expanded disclosures as required by the ASU. In February 2016, the FASB issued ASU 2016-02, Leases , which requires substantially all leases to be reflected on the balance sheet as a liability and a right-of-use asset. The ASU will replace existing lease accounting guidance in U.S. GAAP when it becomes effective on January 1, 2019, and the Partnership will adopt it at that time. The standard will be applied on a modified retrospective basis in which certain optional practical expedients may be applied. Due to the Partnership’s limited leasing activity, management does not expect the effect of this standard to be material to Partnership’s consolidated financial statements. Effective January 1, 2017, the Partnership adopted ASU 2016-09, which simplifies several aspects of accounting for share-based payment transactions, including income tax consequences, award classification, cash flows reporting, and forfeiture rate application. The adoption of this standard did not have a material impact on the Partnership’s consolidated financial statements. |
General partner | General partner The Partnership has two general partners: Pope MGP, Inc. and Pope EGP, Inc. In total, these two entities own 60,000 partnership units. The allocation of distributions, income and other capital related items between the general and limited partners is pro rata among all units outstanding. The managing general partner of the Partnership is Pope MGP, Inc. The Partnership has no directors. Instead, the board of directors of Pope MGP, Inc. serves in that capacity. |
Noncontrolling interests | Noncontrolling interests Noncontrolling interests represents the portion of net income and losses of the Funds attributable to third-party owners of the Funds and Ferncliff Investors. Noncontrolling interests represent 80% of Fund II, 95% of Fund III, 85% of Fund IV, and 66.67% of Ferncliff Investors ownership. To arrive at net and comprehensive income attributable to Partnership unitholders, the portion of the income attributable to these third-party investors is subtracted from net and comprehensive income or, in the case of a loss attributable to third-party investors, added back to net and comprehensive income. |
Significant estimates and concentrations in financial statements | Significant estimates and concentrations in financial statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates. |
Depletion | Depletion Timber costs are combined into depletion pools based on how the tree farms are managed and on the common characteristics of the timber such as location and species mix. Each tree farm within the Funds is considered a separate depletion pool and timber harvested from the Funds’ tree farms is accounted for and depleted separately from timber harvested from the Partnership’s timberlands, which are considered one depletion pool. The applicable depletion rate is derived by dividing the aggregate cost of merchantable stands of timber, together with capitalized road expenditures, by the estimated volume of merchantable timber available for harvest at the beginning of that year. For purposes of the depletion calculation, merchantable timber is defined as timber that is equal to or greater than 35 years of age for all of the tree farms except California, for which merchantable timber is defined as timber with a diameter at breast height (DBH) of 16 inches or greater. The depletion rate, so derived and expressed in per MBF terms, is then multiplied by the volume harvested in a given period to calculate depletion expense for that period as follows: Depletion rate = Accumulated cost of timber and capitalized road expenditures Estimated volume of merchantable timber |
Purchased timberland cost allocation | Purchased timberland cost allocation. When the Partnership or Funds acquire timberlands, a purchase price allocation is performed that allocates cost between the categories of merchantable timber, pre-merchantable timber, roads, and land based upon the relative fair values pertaining to each of the categories. Land value may include uses other than timberland including potential conservation easement (CE) sales and development opportunities. |
Cost of sales | Cost of sales Cost of sales consists of the Partnership’s cost basis in timber (depletion expense), real estate, and other inventory sold, and direct costs incurred to make those assets saleable. Those direct costs include the expenditures associated with the harvesting and transporting of timber and closing costs incurred in land and lot sale transactions. Cost of sales also consists of those costs directly attributable to the Partnership’s rental activities. |
Restricted cash | Restricted cash Restricted cash comprises capital contributed by third party owners of Ferncliff Investors that must be invested in an unconsolidated real estate joint venture entity. |
Like-kind exchanges | Like-kind exchanges In order to acquire and sell assets, primarily timberland and other real property, in a tax efficient manner, we sometimes utilize Internal Revenue Code (IRC) Section 1031 like-kind exchange transactions. There are two main types of like-kind exchange transactions: forward transactions, in which property is sold and the proceeds are reinvested by acquiring similar property; and reverse transactions, in which property is acquired and similar property is subsequently sold. We use qualified intermediaries to facilitate such transactions and proceeds from forward transactions are held by the intermediaries. Both types of transactions must be completed within prescribed periods under IRC 1031, generally 180 days. Any unused funds held by intermediaries at the expiration of these time periods revert to the Partnership. To the extent we have identified potential replacement properties to acquire, funds held by intermediaries are classified as non-current in other assets on the consolidated balance sheets. To the extent funds held by qualified intermediaries exceed the value of identified potential properties to acquire, the funds are included in prepaid expenses and other current assets. |
Concentration of credit risk | Concentration of credit risk Financial instruments that potentially subject the Partnership to concentrations of credit risk consist principally of accounts and notes receivable. The Partnership limits its credit exposure by considering the creditworthiness of potential customers and utilizing the underlying land sold as collateral on real estate contracts. |
Income taxes | Income taxes The Partnership itself is not subject to income taxes, but its corporate subsidiaries, and those of the Funds, are subject to income taxes which are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Operating loss and tax credit carryforwards, if any, are also factored into the calculation of deferred tax assets and liabilities. Deferred tax assets and liabilities are measured using enacted tax rates that are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Partnership has concluded that it is more likely than not that its deferred tax assets will be realizable and thus no valuation allowance has been recorded as of December 31, 2017 . This conclusion is based on anticipated future taxable income, the expected future reversals of existing taxable temporary differences, and tax planning strategies to generate taxable income, if needed. The Partnership will continue to reassess the need for a valuation allowance during each future reporting period. The Partnership is not aware of any tax exposure items as of December 31, 2017 and 2016 , where the Partnership’s tax position is not more likely than not to be sustained if challenged by the taxing authorities. The Partnership recognizes interest expense related to unrecognized tax benefits or underpayment of income taxes in interest expense and recognizes penalties in operating expenses. |
Land and timer held for sale and Land held for development | Land and timber held for sale and Land held for development Land and timber held for sale and Land held for development are recorded at cost, unless impaired. Costs of development, including interest, are capitalized for these projects and allocated to individual lots based upon their relative preconstruction fair value. This allocation of basis supports, in turn, the computation of those amounts reported as current versus long-term assets based on management’s expectation of when the sales will occur (Land and timber held for sale and Land held for development, respectively). As lot sales occur, the allocation of these costs becomes part of cost of sales attributed to individual lot sales. Costs associated with land including acquisition, project design, architectural costs, road construction, capitalized interest, and utility installation are accounted for as operating activities on our statement of cash flows. Those properties that are for sale, under contract, and for which the Partnership has an expectation they will be sold within 12 months are classified on the balance sheet as a current asset under “Land and timber held for sale”. The $5.7 million in land and timber held for sale at December 31, 2017 reflects our expectation of sales in 2018 of parcels comprising 19 acres from the Harbor Hill project in Gig Harbor, Washington, as well as three parcels comprising 20 acres in Kitsap County, Washington. Land and timber held for sale of $20.5 million as of December 31, 2016 reflected a 6,300 -acre tree farm sold by Fund II in January 2017 and sales that were expected in 2017 of parcels comprising 30 acres from the Harbor Hill project. Land held for development on our balance sheet represents the Partnership’s cost basis in land that has been identified as having greater value as development property rather than as timberland. Land development costs, including interest, clearly associated with development or construction of fully entitled projects are capitalized, whereas costs associated with projects that are in the entitlement phase are expensed. Interest capitalization ceases once projects reach the point of substantial completion or construction activity has been delayed intentionally. |
Timberland, timber and roads | Timberland, timber and roads Timberland, timber and roads are recorded at cost. The Partnership capitalizes the cost of building permanent roads on the tree farms and expenses temporary roads and road maintenance. Timberland is not subject to depletion. |
Buildings and equipment | Buildings and equipment Buildings and equipment depreciation is provided using the straight-line method over the estimated useful lives of the assets, which range from 3 to 39 years . |
Impairment of long-lived assets | Impairment of long-lived assets When facts and circumstances indicate the carrying value of properties may be impaired, an evaluation of recoverability is performed by comparing the currently recorded carrying value of the property to the projected future undiscounted cash flows of the same property or, in the case of land held for sale, fair market value less costs to sell. If it is determined that the carrying value of such assets may not be fully recoverable, we would recognize an impairment loss, adjusting for the difference between the carrying value and the estimated fair market value, and would recognize an expense in this amount against current operations. |
Deferred revenue | Deferred revenue Deferred revenue represents the unearned portion of cash collected. |
Revenue recognition | Revenue recognition Revenue on fee timber sales is recorded when title and risk of loss passes to the buyer, which typically occurs when delivered to the customer. Revenue on real estate sales is recorded on the date the sale closes, upon receipt of adequate down payment, and receipt of the buyer’s obligation to make sufficient continuing payments towards the purchase of the property, provided the Partnership has no continuing involvement with the real estate sold. When a real estate transaction is closed with obligations to complete infrastructure or other construction, revenue is recognized on a percentage of completion method by calculating a ratio of costs incurred to total costs expected. Revenue is deferred proportionately based on the remaining costs to satisfy the obligation. Timberland management fees and consulting service revenues are recognized as the related services are provided. |
Land and development rights or conservation easement (CE) sales | Land and development rights or conservation easement (CE) sales The Partnership considers the sale of land and development rights, or conservation easements (CE’s), to be part of its normal operations and therefore recognizes revenue from such sales and cost of sales for the Partnership’s basis in the property sold. CE sales allow us to retain harvesting and other timberland management rights, but bar any future subdivision of or real estate development on the property. Cash generated from these sales is included in cash flows from operations on the Partnership’s statements of cash flows. |
Environmental remediation liabilities | Environmental remediation liabilities Environmental remediation liabilities have been evaluated using a combination of methods. The liability is estimated based on amounts included in construction contracts and estimates for construction contingencies, project management, and other professional fees. See Note 11 for further discussion of environmental remediation liabilities. |
Equity-based compensation | Equity-based compensation The Partnership issues restricted units to certain employees, officers, and directors of the Partnership as part of their annual compensation. Restricted units are valued on the grant date at the market closing price of the partnership units on that date. The value of the restricted units is amortized to compensation expense on a straight-line basis during the vesting period which is generally four years . Grants to retirement-eligible individuals on the date of grant are expensed immediately. |
Income per partnership unit | Income per partnership unit Basic and diluted net earnings per unit are calculated by dividing net income attributable to unitholders, adjusted for non-forfeitable distributions paid out to unvested restricted unitholders and Fund II and Fund III preferred shareholders, by the weighted average units outstanding during the period. |
Fund II and Fund III preferred shares | Fund II and Fund III preferred shares Fund II and Fund III issued 125 par $0.01 shares of its 12.5% Series A Cumulative Non-Voting Preferred Stock (Series A Preferred Stock) at $1,000 per share. Each holder of the Series A Preferred Stock is entitled to a liquidation preference of $1,000 per share. Dividends on each share of Series A Preferred Stock will accrue on a daily basis at the rate of 12.5% per annum. Upon a liquidation, the Series A Preferred Stock will be settled in cash and is not convertible into any other class or series of shares or Partnership units. The timing of such a redemption is controlled by the Funds. The maximum amount that each of the consolidated subsidiaries could be required to pay to redeem the instruments upon liquidation is $125,000 plus accrued but unpaid dividends. The Series A Preferred Stock is recorded within noncontrolling interests on the consolidated balance sheets and are considered participating securities for purposes of calculating earnings per unit. |
Fair value hierarchy | Fair value hierarchy We use a fair value hierarchy in accounting for certain nonfinancial assets and liabilities including long-lived assets (asset groups) measured at fair value for an impairment assessment. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: • Level 1-Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2-Inputs are: (a) quoted prices for similar assets or liabilities in an active market, (b) quoted prices for identical or similar assets or liabilities in markets that are not active, or (c) inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data. • Level 3-Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Buildings and Equipment | Buildings and equipment are recorded at cost and consisted of the following as of December 31, 2017 and 2016 , (in thousands): Description 12/31/2017 12/31/2016 Buildings $ 9,437 $ 9,439 Equipment 3,039 3,239 Furniture and fixtures 663 663 Total $ 13,139 $ 13,341 Accumulated depreciation (7,833 ) (7,713 ) Net buildings and equipment $ 5,306 $ 5,628 |
Basic and Diluted Earnings (Loss) per Unit | The table below displays how we arrived at basic and diluted earnings per unit: Year Ended December 31, (in thousands, except per unit data) 2017 2016 2015 Net and comprehensive income attributable to unitholders $ 17,891 $ 5,942 $ 10,943 Less: Net and comprehensive income attributable to unvested restricted unitholders (133 ) (101 ) (103 ) Less: Dividends paid to Funds preferred shareholders (31 ) (31 ) (31 ) Net and comprehensive income attributable to unitholders for earnings per unit calculation $ 17,727 $ 5,810 $ 10,809 Basic and diluted weighted average units outstanding 4,323 4,313 4,298 Basic and diluted net earnings per unit $ 4.10 $ 1.35 $ 2.51 |
ORM TIMBER FUND II, INC. (FUN24
ORM TIMBER FUND II, INC. (FUND II), ORM TIMBER FUND III (REIT) INC. (FUND III), AND ORM TIMBER FUND IV (REIT) INC. (FUND IV) (COLLECTIVELY, “THE FUNDS”) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Partnership's Consolidated Financial Statement include Fund II, Fund III and Fund IV Assets and Liabilities | The Partnership’s consolidated balance sheets include Fund II, Fund III, and Fund IV assets and liabilities at December 31, 2017 , and Fund II and Fund III assets and liabilities at December 31, 2016 , which were as follows: (in thousands) 2017 2016 Cash $ 1,636 $ 1,066 Land and timber held for sale — 13,941 Other current assets 2,481 2,195 Total current assets 4,117 17,202 Properties and equipment, net of accumulated depreciation 235,046 249,197 Other long-term assets 5,683 — Total assets $ 244,846 $ 266,399 Current liabilities $ 2,862 $ 2,256 Long-term debt 57,291 57,268 Funds’ equity 184,693 206,875 Total liabilities and equity $ 244,846 $ 266,399 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Assets | Other assets consisted of the following at December 31: 2017 2016 Deferred tax assets, net $ 465 $ 753 Cash held by like-kind exchange intermediaries 598 1,910 Deposits for acquisitions of timberland 5,688 — Investment in Real Estate joint venture entity 5,895 — Note receivable 2,625 — Other 37 1 Total $ 15,308 $ 2,664 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | At December 31, (in thousands) 2017 2016 Partnership debt: $20.0 million revolving line of credit with Northwest Farm Credit Services (NWFCS), variable interest based on LIBOR plus margin of 1.50% (2.9% at December 31, 2017) with quarterly interest-only payments and collateralized by timberlands (matures April 2020) $ 16,200 8,000 $31.0 million revolving line of credit facility with NWFCS, variable interest based on LIBOR plus margin of 1.85% (3.25% at December 31, 2017) with quarterly interest-only payments and collateralized by timberlands (matures December 2019 with option to convert to multiple term loans with ultimate maturities in July 2027) — 6,000 Mortgage payable to NWFCS, collateralized by Poulsbo headquarters property: Interest at 3.80%, monthly principal and interest payments (matures January 2023) 2,460 2,578 Mortgage payable to NWFCS, collateralized by Partnership timberlands, as follows: Seven-year tranche, interest at 4.85% with quarterly interest payments (matured July 2017) — 5,000 Ten-year tranche, interest at 6.40% with monthly interest payments (matures September 2019) 9,800 9,800 Fifteen-year tranche, interest at 6.05% with quarterly interest payments (matures July 2025) 10,000 10,000 Mortgage payable to NWFCS, collateralized by Partnership timberlands, as follows: Seven-year tranche, variable interest based on LIBOR plus margin of 2.20% (3.60% at December 31, 2017) with quarterly interest-only payments (matures July 2023) 10,000 10,000 Ten-year tranche, interest at 3.89% with quarterly interest payments (matures July 2026) 11,000 11,000 12-year tranche, interest at 4.13% with quarterly interest payments (matures July 2028) 11,000 11,000 Total Partnership debt 70,460 73,378 Less unamortized debt issuance costs (300 ) (236 ) Less current portion (123 ) (5,119 ) Long-term debt, less unamortized debt issuance costs and current portion - Partnership 70,037 68,023 ORM Timber Funds debt: Fund II Mortgages payable to MetLife, collateralized by Fund II timberlands with quarterly 4.85% interest rate tranche 11,000 11,000 3.84% interest rate tranche 14,000 14,000 Fund III mortgages payable to NWFCS, collateralized by Fund III timberlands 5.10% interest rate tranche (matures December 2023) 17,980 17,980 4.45% interest rate tranche (matures October 2024) 14,400 14,400 Total ORM Timber Funds debt 57,380 57,380 Less unamortized debt issuance costs (89 ) (112 ) Less current portion — — Long-term debt, less unamortized debt issuance costs and current portion - Funds $ 57,291 $ 57,268 |
Principal Payments on Long-Term Debt | At December 31, 2017 , principal payments on long-term debt for the next five years and thereafter are due as follows (in thousands): Partnership Funds 2018 $ 123 $ — 2019 9,928 — 2020 16,333 25,000 2021 138 — 2022 143 — Thereafter 43,795 32,380 Total $ 70,460 $ 57,380 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Consolidated Partnership Income (Loss) Before Income Taxes | Consolidated Partnership income (loss) is reconciled to income (loss) before income taxes in corporate subsidiaries for the years ended December 31 as follows: (in thousands) 2017 2016 2015 Income before income taxes $ 25,581 $ 2,215 $ 7,707 Income in entities that pass-through pre-tax earnings to the partners 23,089 1,500 7,203 Income subject to income taxes $ 2,492 $ 715 $ 504 |
Provision for Income Taxes Relating to Corporate Subsidiaries of Partnership | The provision for income taxes relating to corporate subsidiaries of the Partnership and Funds consist of the following income tax benefit (expense) for each of the years ended December 31: (in thousands) 2017 2016 2015 Current $ (888 ) $ (185 ) $ (328 ) Deferred (288 ) (67 ) 121 Total $ (1,176 ) $ (252 ) $ (207 ) |
Reconciliation Between Federal Statutory Tax Rate and Partnership's Effective Tax Rate | A reconciliation between the federal statutory tax rate and the Partnership’s effective tax rate is as follows for each of the years ended December 31: 2017 2016 2015 Statutory tax on income 34 % 34 % 34 % Income from entities that pass-through pre-tax earnings to the partners (30 )% (23 )% (31 )% Effect on deferred tax assets of change in income tax rate 1 % — % — % Effective income tax rate 5 % 11 % 3 % |
Schedule of Net Deferred income Tax Assets and Deferred Tax Assets | The net deferred tax assets are included in other assets on the consolidated balance sheets and are comprised of the following: (in thousands) 2017 2016 2015 Compensation-related accruals $ 359 $ 456 $ 421 Net operating loss carryforwards 123 284 399 Depreciation 15 16 (16 ) Other (32 ) (3 ) 16 Total $ 465 $ 753 $ 820 |
UNIT INCENTIVE PLAN (Tables)
UNIT INCENTIVE PLAN (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Unit Activity | Restricted unit activity for the three years ended December 31, 2017 was as follows: Units Weighted Avg Grant Date Fair Value ($) Outstanding December 31, 2014 41,427 55.23 Grants 12,050 62.14 Vested (15,729 ) 49.39 Tendered back to pay tax withholding (1,701 ) 50.33 Outstanding December 31, 2015 36,047 59.96 Grants 15,016 64.67 Vested (12,789 ) 55.97 Forfeited (436 ) 62.49 Tendered back to pay tax withholding (2,345 ) 57.41 Outstanding December 31, 2016 35,493 59.96 Grants 20,893 66.10 Vested (14,190 ) 66.48 Forfeited (1,550 ) 65.02 Tendered back to pay tax withholding (1,432 ) 65.65 Outstanding December 31, 2017 39,214 64.62 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes in Environmental Liability | Changes in the environmental liability for the last three years are as follows: (in thousands) Balances at the Beginning of the Period Additions to Accrual Expenditures for Remediation Balance at Period-end Year ended December 31, 2015 $ 21,651 $ — $ 4,890 $ 16,761 Year ended December 31, 2016 16,761 7,700 11,691 12,770 Year ended December 31, 2017 $ 12,770 $ — $ 7,791 $ 4,979 |
SEGMENT AND MAJOR CUSTOMER IN30
SEGMENT AND MAJOR CUSTOMER INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Partnership's Operations by Business Segment | Details of the Partnership’s operations by business segment for the years ended December 31 are as follows: (in thousands) Fee Timber Real 2017 Partnership Funds Combined TIM Estate Other Consolidated Revenue internal $ 40,004 $ 33,842 $ 73,846 $ 3,377 $ 26,737 $ — $ 103,960 Eliminations (332 ) — (332 ) (3,368 ) (437 ) — (4,137 ) Revenue external 39,672 33,842 73,514 9 26,300 — 99,823 Cost of sales (14,874 ) (26,910 ) (41,784 ) — (16,200 ) — (57,984 ) Operating, general and administrative expenses internal (6,177 ) (7,261 ) (13,438 ) (3,593 ) (5,594 ) (5,846 ) (28,471 ) Eliminations 174 3,368 3,542 405 86 104 4,137 Operating, general and administrative expenses external (6,003 ) (3,893 ) (9,896 ) (3,188 ) (5,508 ) (5,742 ) (24,334 ) Gain (loss) on sale of timberland — 12,547 12,547 — — — 12,547 Income (loss) from operations internal 18,953 12,218 31,171 (216 ) 4,943 (5,846 ) 30,052 Eliminations (158 ) 3,368 3,210 (2,963 ) (351 ) 104 — Income (loss) from operations external $ 18,795 $ 15,586 $ 34,381 $ (3,179 ) $ 4,592 $ (5,742 ) $ 30,052 Fee Timber Real 2016 Partnership Funds Combined TIM Estate Other Consolidated Revenue internal $ 36,478 $ 21,029 $ 57,507 $ 3,275 $ 23,419 $ — $ 84,201 Eliminations (203 ) — (203 ) (3,267 ) (303 ) — (3,773 ) Revenue external 36,275 21,029 57,304 8 23,116 — 80,428 Cost of sales (15,497 ) (17,145 ) (32,642 ) — (14,631 ) — (47,273 ) Operating, general and administrative expenses internal (6,152 ) (5,974 ) (12,126 ) (2,888 ) (4,441 ) (5,147 ) (24,602 ) Eliminations 128 3,267 3,395 260 47 71 3,773 Operating, general and administrative expenses external (6,024 ) (2,707 ) (8,731 ) (2,628 ) (4,394 ) (5,076 ) (20,829 ) Environmental remediation — — — — (7,700 ) — (7,700 ) Gain (loss) on sale of timberland 769 226 995 — — — 995 Income (loss) from operations internal 15,598 (1,864 ) 13,734 387 (3,353 ) (5,147 ) 5,621 Eliminations (75 ) 3,267 3,192 (3,007 ) (256 ) 71 — Income (loss) from operations external $ 15,523 $ 1,403 $ 16,926 $ (2,620 ) $ (3,609 ) $ (5,076 ) $ 5,621 Fee Timber Real 2015 Partnership Funds Combined TIM Estate Other Consolidated Revenue internal $ 29,257 $ 23,250 $ 52,507 $ 2,235 $ 26,007 $ — $ 80,749 Eliminations (343 ) — (343 ) (2,235 ) (143 ) — (2,721 ) Revenue external 28,914 23,250 52,164 — 25,864 — 78,028 Cost of sales (11,875 ) (18,214 ) (30,089 ) — (16,515 ) — (46,604 ) Operating, general and administrative expenses internal (5,387 ) (4,874 ) (10,261 ) (2,953 ) (4,056 ) (5,095 ) (22,365 ) Eliminations 20 2,230 2,250 328 20 123 2,721 Operating, general and administrative expenses external (5,367 ) (2,644 ) (8,011 ) (2,625 ) (4,036 ) (4,972 ) (19,644 ) Gain (loss) on sale of timberland — (1,103 ) (1,103 ) — — — (1,103 ) Income (loss) from operations internal 11,995 (941 ) 11,054 (718 ) 5,436 (5,095 ) 10,677 Eliminations (323 ) 2,230 1,907 (1,907 ) (123 ) 123 — Income (loss) from operations external $ 11,672 $ 1,289 $ 12,961 $ (2,625 ) $ 5,313 $ (4,972 ) $ 10,677 (in thousands) 2017 2016 2015 Depreciation, Amortization and Depletion Fee Timber-Partnership $ 4,122 $ 3,771 $ 2,174 Fee Timber-Funds 15,192 9,095 8,044 Fee Timber-Combined 19,314 12,866 10,218 Timberland Investment Management 32 33 18 Real Estate 281 388 299 G&A 94 89 101 Total $ 19,721 $ 13,376 $ 10,636 Assets Fee Timber-Partnership $ 91,206 $ 87,419 $ 49,499 Fee Timber-Funds 244,846 266,401 275,786 Fee Timber-Combined 336,052 353,820 325,285 Timberland Investment Management 83 325 182 Real Estate 39,420 38,988 33,983 G&A 5,118 5,917 10,606 Total $ 380,673 $ 399,050 $ 370,056 Capital and Land Expenditures Fee Timber-Partnership $ 7,168 $ 40,745 $ 5,877 Fee Timber-Funds 6,808 859 51,854 Fee Timber-Combined 13,976 41,604 57,731 Timberland Investment Management 32 13 69 Real Estate project expenditures 7,588 13,993 9,631 Real Estate-other 2 128 225 G&A 58 20 79 Total $ 21,656 $ 55,758 $ 67,735 (in thousands) 2017 2016 2015 Revenue by product/service Domestic forest products $ 56,657 $ 47,255 $ 41,636 Export forest products, indirect 16,857 10,049 10,528 Homes, lots, and undeveloped acreage 19,913 17,031 17,797 Conservation easements and land sales 5,056 4,440 6,815 Rentals and other Real Estate 1,331 1,645 1,252 Fees for service 9 8 — Total $ 99,823 $ 80,428 $ 78,028 |
QUARTERLY FINANCIAL INFORMATI31
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | (in thousands, except per unit amounts) Revenue Income (loss) from operations Net and comprehensive income (loss) attributable to unitholders Basic and diluted earnings (loss) per unit 2017 First quarter $ 17,345 $ 12,684 $ 3,370 $ 0.77 Second quarter 15,891 993 158 0.03 Third quarter 18,803 1,805 1,658 0.38 Fourth quarter 47,784 14,570 12,705 2.92 2016 First quarter $ 11,069 $ (822 ) $ (1,034 ) $ (0.25 ) Second quarter 12,713 142 436 0.09 Third quarter 13,178 1,985 1,970 0.45 Fourth quarter 43,468 4,316 4,571 1.05 |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)aPartnerSegment$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) | Jan. 31, 2017a | |
Significant Accounting Policies [Line Items] | ||||
Number of business segments | Segment | 3 | |||
Number of partnership units owned by general partners | shares | 60,000 | 60,000 | ||
Prepaid expenses and other | $ 591,000 | $ 4,385,000 | ||
Other assets | 15,308,000 | 2,664,000 | ||
Allowance for doubtful accounts on accounts receivable | 1,000 | 8,000 | ||
Deferred tax assets, valuation allowance | 0 | |||
Interest expense and penalties on taxes | 0 | 0 | $ 0 | |
Land and timber held for sale | 5,728,000 | 20,503,000 | ||
Deferred revenue | $ 197,000 | 418,000 | ||
Restricted Units | ||||
Significant Accounting Policies [Line Items] | ||||
Vesting period of restricted stock unit award | 4 years | |||
Land | ||||
Significant Accounting Policies [Line Items] | ||||
Land held for sale | $ 5,700,000 | |||
Area of land for sale | a | 30 | 6,300 | ||
Conservation easements and land sales | ||||
Significant Accounting Policies [Line Items] | ||||
Conservation easement sales | $ 0 | 2,100,000 | $ 4,300,000 | |
Gig Harbor, Washington | Land | ||||
Significant Accounting Policies [Line Items] | ||||
Area of land for sale | a | 19 | |||
Kitsap County, Washington | Land | ||||
Significant Accounting Policies [Line Items] | ||||
Area of land for sale | a | 20 | |||
Like-Kind Intermediaries | ||||
Significant Accounting Policies [Line Items] | ||||
Prepaid expenses and other | 850,000 | |||
Other assets | $ 598,000 | 1,900,000 | ||
Like-Kind Intermediaries | Forward Contracts | ||||
Significant Accounting Policies [Line Items] | ||||
Prepaid expenses and other | $ 2,300,000 | |||
General Partners | ||||
Significant Accounting Policies [Line Items] | ||||
Number of general partners | Partner | 2 | |||
Number of partnership units owned by general partners | shares | 60,000 | |||
Bainbridge Landing | Ferncliff Investors | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of ownership interest in Funds | 50.00% | |||
Fund III | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of interests owned by third parties in non controlling interests | 95.00% | |||
Fund III | Partnership | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of ownership interest in Funds | 4.00% | |||
Fund IV | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of interests owned by third parties in non controlling interests | 85.00% | |||
Fund IV | Partnership | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of ownership interest in Funds | 14.00% | |||
Ferncliff Investors | Ferncliff Management | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of ownership interest in Funds | 33.33% | |||
Ferncliff Investors | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of interests owned by third parties in non controlling interests | 66.67% | |||
Fund II | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of interests owned by third parties in non controlling interests | 80.00% | |||
Fund II | Partnership | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of ownership interest in Funds | 19.00% | |||
Fund I, II, III and IV | Olympic Resource Management Llc | ||||
Significant Accounting Policies [Line Items] | ||||
Percentage of ownership interest in Funds | 1.00% | |||
Fund II and Fund III | Series A Preferred Stock | ||||
Significant Accounting Policies [Line Items] | ||||
Preferred stock issued (in shares) | shares | 125 | |||
Preferred stock issued at par value (in dollars per share) | $ / shares | $ 0.01 | |||
Preferred stock rate of interest | 12.50% | |||
Series A preferred stock (in dollars per share) | $ / shares | $ 1,000 | |||
Preferred stock, liquidation preference (in dollars per share) | $ / shares | $ 1,000 | |||
Maximum amount required to pay on redemption upon settlement | $ 125,000 |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Buildings and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 13,139 | $ 13,341 |
Accumulated depreciation | (7,833) | (7,713) |
Net buildings and equipment | $ 5,306 | 5,628 |
Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life of properties and equipment | 3 years | |
Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life of properties and equipment | 39 years | |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 9,437 | 9,439 |
Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 3,039 | 3,239 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 663 | $ 663 |
SUMMARY OF SIGNIFICANT ACCOUN34
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Basic and Diluted Income (Loss) per Unit) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||||||||
Net and comprehensive income attributable to unitholders | $ 12,705 | $ 1,658 | $ 158 | $ 3,370 | $ 4,571 | $ 1,970 | $ 436 | $ (1,034) | $ 17,891 | $ 5,942 | $ 10,943 |
Less: Net and comprehensive income attributable to unvested restricted unitholders | (133) | (101) | (103) | ||||||||
Less: Dividends paid to Funds preferred shareholders | (31) | (31) | (31) | ||||||||
Net and comprehensive income attributable to unitholders for earnings per unit calculation | $ 17,727 | $ 5,810 | $ 10,809 | ||||||||
Basic and diluted weighted average units outstanding (in shares) | 4,323 | 4,313 | 4,298 | ||||||||
Basic and diluted net earnings per unit (in dollars per share) | $ 2.92 | $ 0.38 | $ 0.03 | $ 0.77 | $ 1.05 | $ 0.45 | $ 0.09 | $ (0.25) | $ 4.10 | $ 1.35 | $ 2.51 |
ORM TIMBER FUND II, INC. (FUN35
ORM TIMBER FUND II, INC. (FUND II), ORM TIMBER FUND III (REIT) INC. (FUND III), AND ORM TIMBER FUND IV (REIT) INC. (FUND IV) (COLLECTIVELY, “THE FUNDS”) (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018USD ($)Property | Jan. 31, 2017USD ($)Property | Mar. 31, 2017USD ($)Property | Dec. 31, 2015USD ($)a | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Pretax profit (loss) | $ 25,581 | $ 2,215 | $ 7,707 | ||||
Deposit for acquisitions | 5,688 | ||||||
Management fees payable | $ 657 | 691 | |||||
Fund II | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Pope Resources and ORMLLC combined ownership percentage | 20.00% | ||||||
Number of tree farms sold | Property | 1 | 1 | |||||
Proceeds from sale of tree farms | $ 26,500 | $ 26,500 | |||||
Fund II | Land | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Pretax profit (loss) | $ 12,500 | $ 12,500 | $ (23) | (9) | |||
Fund II and Fund III | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Operating term for Fund | 10 years | ||||||
Fund III | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Pope Resources and ORMLLC combined ownership percentage | 5.00% | ||||||
Fund III | South Puget Sound WA | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Area of timberland acquired (in acre) | a | 15,100 | ||||||
Total purchase price | $ 50,600 | 50,600 | |||||
Timber and roads | 44,500 | 44,500 | |||||
Land | $ 6,100 | $ 6,100 | |||||
Fund IV | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Operating term for Fund | 15 years | ||||||
Pope Resources and ORMLLC combined ownership percentage | 15.00% | ||||||
Deposit for acquisitions | $ 5,700 | ||||||
Fund IV | Subsequent Event | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Total purchase price | $ 17,000 | ||||||
Fund IV | Subsequent Event | Southwestern Oregon and South Puget Sound Washington [Member] | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Number of acquisitions | Property | 2 | ||||||
Fund IV | Subsequent Event | South Puget Sound WA | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Total purchase price | $ 80,400 | ||||||
Fund IV | Subsequent Event | Southwestern OR | |||||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |||||||
Total purchase price | $ 33,500 |
ORM TIMBER FUND II, INC. (FUN36
ORM TIMBER FUND II, INC. (FUND II), ORM TIMBER FUND III (REIT) INC. (FUND III), AND ORM TIMBER FUND IV (REIT) INC. (FUND IV) (COLLECTIVELY, “THE FUNDS”) (Partnership's Consolidated Balance Sheet included Assets and Liabilities of Funds) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | |||
Cash | $ 1,636 | $ 1,066 | |
Land and timber held for sale | 5,728 | 20,503 | |
Other current assets | 591 | 4,385 | |
Total current assets | 18,030 | 32,206 | |
Properties and equipment, net of accumulated depreciation | 347,335 | 364,180 | |
Other assets | 15,308 | 2,664 | |
Total assets | 380,673 | 399,050 | $ 370,056 |
Current liabilities | 9,762 | 21,048 | |
Total liabilities, partners’ capital, and noncontrolling interests | 380,673 | 399,050 | |
Funds | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash | 1,636 | 1,066 | |
Land and timber held for sale | 0 | 13,941 | |
Other current assets | 2,481 | 2,195 | |
Total current assets | 4,117 | 17,202 | |
Properties and equipment, net of accumulated depreciation | 235,046 | 249,197 | |
Other assets | 5,683 | 0 | |
Total assets | 244,846 | 266,399 | |
Current liabilities | 2,862 | 2,256 | |
Long-term debt | 57,291 | 57,268 | |
Funds’ equity | 184,693 | 206,875 | |
Total liabilities, partners’ capital, and noncontrolling interests | $ 244,846 | $ 266,399 |
PARTNERSHIP TIMBERLAND ACQUIS37
PARTNERSHIP TIMBERLAND ACQUISITIONS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2016USD ($)aProperty | Jul. 31, 2016USD ($)a | Dec. 31, 2017USD ($)a | |
Western Washington | |||
Business Acquisition [Line Items] | |||
Acres of land acquired | a | 7,324 | 1,810 | |
Assets acquired | $ 32,000 | $ 5,900 | |
Western Washington | Owned land | |||
Business Acquisition [Line Items] | |||
Acres of land acquired | a | 6,746 | ||
Assets acquired | $ 2,700 | 847 | |
Western Washington | Timber deed | |||
Business Acquisition [Line Items] | |||
Acres of land acquired | a | 578 | ||
Assets acquired | $ 29,300 | $ 5,100 | |
Jefferson and Skamania Counties | |||
Business Acquisition [Line Items] | |||
Assets acquired | $ 6,700 | ||
Number of acquisitions | Property | 2 | ||
Jefferson and Skamania Counties | Owned land | |||
Business Acquisition [Line Items] | |||
Acres of land acquired | a | 1,967 | ||
Assets acquired | $ 719 | ||
Jefferson and Skamania Counties | Timber deed | |||
Business Acquisition [Line Items] | |||
Assets acquired | $ 6,000 |
OTHER ASSETS - Summary of Other
OTHER ASSETS - Summary of Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Deferred tax assets, net | $ 465 | $ 753 |
Cash held by like-kind exchange intermediaries | 598 | 1,910 |
Deposits for acquisitions of timberland | 5,688 | 0 |
Investment in Real Estate joint venture entity | 5,895 | 0 |
Note receivable | 2,625 | 0 |
Other | 37 | 1 |
Total | $ 15,308 | $ 2,664 |
OTHER ASSETS - Narrative (Detai
OTHER ASSETS - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)a | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Cash proceeds from sale of land | $ 26,590 | $ 1,603 | $ 1,001 |
Promissory note from sale of land | $ 2,625 | $ 0 | |
Bainbridge Island, Washington | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Area of land (in acres) | a | 5 | ||
Ferncliff Management | Ferncliff Investors | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percentage of ownership interest | 33.33% | ||
Ferncliff Investors | Bainbridge Landing | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Percentage of ownership interest | 50.00% | ||
Partnership's Harbor Hill | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration for sale of land | $ 3,500 | ||
Cash proceeds from sale of land | $ 875 | ||
Partnership's Harbor Hill | Gig Harbor, Washington | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Area of land (in acres) | a | 11 | ||
Partnership's Harbor Hill | Note receivable | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Promissory note from sale of land | $ 2,600 | ||
Promissory note, stated interest rate | 5.25% | ||
Number of annual note payments | 3 |
LONG-TERM DEBT (Schedule of Deb
LONG-TERM DEBT (Schedule of Debt) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Less current portion | $ (123,000) | $ (5,119,000) |
Partnership | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 70,460,000 | 73,378,000 |
Less unamortized debt issuance costs | (300,000) | (236,000) |
Less current portion | (123,000) | (5,119,000) |
Long-term debt, net of unamortized debt issuance costs and current portion | 70,037,000 | 68,023,000 |
Partnership | Mortgages payable | Interest at 3.80%, monthly principal and interest payments (matures January 2023) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 2,460,000 | 2,578,000 |
Long-term debt stated interest rate | 3.80% | |
Partnership | Mortgages payable | Seven-year tranche, interest at 4.85% with quarterly interest payments (matured July 2017) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | 5,000,000 |
Long-term debt stated interest rate | 4.85% | |
Long-term debt term | 7 years | |
Partnership | Mortgages payable | Ten-year tranche, interest at 6.40% with monthly interest payments (matures September 2019) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 9,800,000 | 9,800,000 |
Long-term debt stated interest rate | 6.40% | |
Long-term debt term | 10 years | |
Partnership | Mortgages payable | Fifteen-year tranche, interest at 6.05% with quarterly interest payments (matures July 2025) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 10,000,000 | 10,000,000 |
Long-term debt stated interest rate | 6.05% | |
Long-term debt term | 15 years | |
Partnership | Mortgages payable | Seven-year tranche, variable interest based on LIBOR plus margin of 2.20% (3.60% at December 31, 2017) with quarterly interest-only payments (matures July 2023) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 10,000,000 | 10,000,000 |
Effective interest rate | 3.60% | |
Long-term debt term | 7 years | |
Partnership | Mortgages payable | Seven-year tranche, variable interest based on LIBOR plus margin of 2.20% (3.60% at December 31, 2017) with quarterly interest-only payments (matures July 2023) | LIBOR | ||
Debt Instrument [Line Items] | ||
Spread above the benchmark rate | 2.20% | |
Partnership | Mortgages payable | Ten-year tranche, interest at 3.89% with quarterly interest payments (matures July 2026) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 11,000,000 | 11,000,000 |
Long-term debt stated interest rate | 3.89% | |
Long-term debt term | 10 years | |
Partnership | Mortgages payable | 12-year tranche, interest at 4.13% with quarterly interest payments (matures July 2028) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 11,000,000 | 11,000,000 |
Long-term debt stated interest rate | 4.13% | |
Long-term debt term | 12 years | |
Funds | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 57,380,000 | 57,380,000 |
Less unamortized debt issuance costs | (89,000) | (112,000) |
Less current portion | 0 | 0 |
Long-term debt, net of unamortized debt issuance costs and current portion | 57,291,000 | 57,268,000 |
Funds | Fund II | Mortgages payable | 4.85% interest rate tranche | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 11,000,000 | 11,000,000 |
Long-term debt stated interest rate | 4.85% | |
Funds | Fund II | Mortgages payable | 3.84% interest rate tranche | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 14,000,000 | 14,000,000 |
Long-term debt stated interest rate | 3.84% | |
Funds | Fund III | Mortgages payable | 5.10% interest rate tranche (matures December 2023) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 17,980,000 | 17,980,000 |
Long-term debt stated interest rate | 5.10% | |
Funds | Fund III | Mortgages payable | 4.45% interest rate tranche (matures October 2024) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 14,400,000 | 14,400,000 |
Long-term debt stated interest rate | 4.45% | |
Revolving Credit Facility | Partnership | Line of Credit | $20.0 million revolving line of credit with Northwest Farm Credit Services (NWFCS), variable interest based on LIBOR plus margin of 1.50% (2.9% at December 31, 2017) with quarterly interest-only payments and collateralized by timberlands (matures April 2020) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 16,200,000 | 8,000,000 |
Debt, face amount | $ 20,000,000 | |
Effective interest rate | 2.90% | |
Revolving Credit Facility | Partnership | Line of Credit | $20.0 million revolving line of credit with Northwest Farm Credit Services (NWFCS), variable interest based on LIBOR plus margin of 1.50% (2.9% at December 31, 2017) with quarterly interest-only payments and collateralized by timberlands (matures April 2020) | LIBOR | ||
Debt Instrument [Line Items] | ||
Spread above the benchmark rate | 1.50% | |
Revolving Credit Facility | Partnership | Line of Credit | $31.0 million revolving line of credit facility with NWFCS, variable interest based on LIBOR plus margin of 1.85% (3.25% at December 31, 2017) with quarterly interest-only payments and collateralized by timberlands (matures December 2019 with option to convert to multiple term loans with ultimate maturities in July 2027) | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | $ 6,000,000 |
Debt, face amount | $ 31,000,000 | |
Effective interest rate | 3.25% | |
Revolving Credit Facility | Partnership | Line of Credit | $31.0 million revolving line of credit facility with NWFCS, variable interest based on LIBOR plus margin of 1.85% (3.25% at December 31, 2017) with quarterly interest-only payments and collateralized by timberlands (matures December 2019 with option to convert to multiple term loans with ultimate maturities in July 2027) | LIBOR | ||
Debt Instrument [Line Items] | ||
Spread above the benchmark rate | 1.85% |
LONG-TERM DEBT (Narrative) (Det
LONG-TERM DEBT (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||
Interest coverage ratio | 300.00% | ||
Capitalization rate | 30.00% | ||
Maximum debt-to-appraised value of collateral | 50.00% | ||
Accrued interest on debt instruments | $ 1,300 | $ 1,300 | |
Fund II | |||
Debt Instrument [Line Items] | |||
Loan to value ratio, less than | 50.00% | ||
Fund III | |||
Debt Instrument [Line Items] | |||
Loan to value ratio, less than | 50.00% | ||
Partnership and Fund III | |||
Debt Instrument [Line Items] | |||
Decrease in interest expense | $ 1,000 | $ 810 | $ 478 |
LONG-TERM DEBT (Debt Maturities
LONG-TERM DEBT (Debt Maturities) (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Partnership | |
Debt Instrument [Line Items] | |
2,018 | $ 123 |
2,019 | 9,928 |
2,020 | 16,333 |
2,021 | 138 |
2,022 | 143 |
Thereafter | 43,795 |
Total | 70,460 |
Funds | |
Debt Instrument [Line Items] | |
2,018 | 0 |
2,019 | 0 |
2,020 | 25,000 |
2,021 | 0 |
2,022 | 0 |
Thereafter | 32,380 |
Total | $ 57,380 |
FAIR VALUE OF FINANCIAL INSTR43
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - Fixed-Rate Debt - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt outstanding carrying value | $ 101.6 | $ 106.8 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt outstanding fair value | $ 104.6 | $ 111 |
INCOME TAXES (Consolidated Part
INCOME TAXES (Consolidated Partnership Income (Loss) Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Income before income taxes | $ 25,581 | $ 2,215 | $ 7,707 |
Income in entities that pass-through pre-tax earnings to the partners | 23,089 | 1,500 | 7,203 |
Income subject to income taxes | $ 2,492 | $ 715 | $ 504 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes Relating to Corporate Subsidiaries of Partnership) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Current | $ (888) | $ (185) | $ (328) |
Deferred | (288) | (67) | 121 |
Total | $ (1,176) | $ (252) | $ (207) |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | |||
Deferred income tax benefit (expense) | $ (288,000) | $ (67,000) | $ 121,000 |
Excess tax benefit from equity-based compensation | 0 | $ 53,000 | $ 340,000 |
Decrease in deferred tax assets | $ 264,000 | ||
Increase in effective tax rate | 1.00% | 0.00% | 0.00% |
Operating Loss Carryforwards | |||
Income Tax Contingency [Line Items] | |||
Deferred income tax benefit (expense) | $ (109,000) | $ (115,000) | $ 71,000 |
INCOME TAXES (Reconciliation Be
INCOME TAXES (Reconciliation Between Federal Statutory Tax Rate and Partnership's Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax on income | 34.00% | 34.00% | 34.00% |
Income from entities that pass-through pre-tax earnings to the partners | (30.00%) | (23.00%) | (31.00%) |
Effect on deferred tax assets of change in income tax rate | 1.00% | 0.00% | 0.00% |
Effective income tax rate | 5.00% | 11.00% | 3.00% |
INCOME TAXES (Deferred Tax Asse
INCOME TAXES (Deferred Tax Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | |||
Compensation-related accruals | $ 359 | $ 456 | $ 421 |
Net operating loss carryforwards | 123 | 284 | 399 |
Depreciation | 15 | 16 | |
Depreciation | (16) | ||
Other | (32) | (3) | |
Other | 16 | ||
Total | $ 465 | $ 753 | $ 820 |
UNIT INCENTIVE PLAN (Narrative)
UNIT INCENTIVE PLAN (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Equity compensation expense | $ 1,128 | $ 919 | $ 864 |
Accrued liabilities relating to incentive compensation program | $ 1,300 | 1,500 | |
Performance based, RSU's | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense vesting period | 4 years | ||
Portion of accrued liabilities paid in cash | $ 426 | $ 425 | |
Restricted Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense vesting period | 4 years | ||
Restricted Units | Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants (in units) | 2,213 | 1,794 | |
LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 3 years | ||
Portion of accrued liabilities paid in cash | $ 908 | $ 1,000 | |
2005 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock authorized for issuance (in units) | 1,105,815 | ||
Shares authorized but unissued (in units) | 873,522 | ||
Unvested Restricted Stock Awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total Compensation expense related to non-vested awards not yet recognized | $ 1,100 | ||
Weighted average remaining period to vest | 21 months |
UNIT INCENTIVE PLAN (Restricted
UNIT INCENTIVE PLAN (Restricted Unit Activity) (Details) - Restricted Stock and Restricted Stock Units - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | |||
Outstanding Beginning Balance (in units) | 35,493 | 36,047 | 41,427 |
Grants (in units) | 20,893 | 15,016 | 12,050 |
Vested (in units) | (14,190) | (12,789) | (15,729) |
Forfeited (in units) | (1,550) | (436) | |
Tendered back to pay tax withholding (in units) | (1,432) | (2,345) | (1,701) |
Outstanding Ending Balance (in units) | 39,214 | 35,493 | 36,047 |
Weighted Average Grant Date Fair Value | |||
Outstanding Beginning Balance (in USD per share) | $ 59.96 | $ 59.96 | $ 55.23 |
Grants (in USD per share) | 66.10 | 64.67 | 62.14 |
Vested (in USD per share) | 66.48 | 55.97 | 49.39 |
Forfeited (in USD per share) | 65.02 | 62.49 | |
Tendered back to pay tax withholding (in USD per share) | 65.65 | 57.41 | 50.33 |
Outstanding Ending Balance (in USD per share) | $ 64.62 | $ 59.96 | $ 59.96 |
UNIT REPURCHASE PLAN AND DIST51
UNIT REPURCHASE PLAN AND DISTRIBUTION REINVESTMENT PLAN (Details) - Partnership Units - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | May 31, 2017 | |
Class of Stock [Line Items] | ||
Maximum units authorized for repurchase | $ 2,500,000 | |
Units repurchased (in units) | 18,101 | |
Aggregate value of units repurchased | $ 1,300,000 | |
Units registered for issuance under the Distribution Reinvestment Plan | 225,000 | |
Units issued under the Distribution Reinvestment Plan (in units) | 122 |
EMPLOYEE BENEFITS (Details)
EMPLOYEE BENEFITS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Employer matching contribution to defined contribution plan | 50.00% | ||
Maximum percentage of compensation contribution by company to defined contribution plan | 8.00% | ||
Amount of contribution by company to defined contribution plan | $ 195 | $ 182 | $ 191 |
COMMITMENTS AND CONTINGENCIES53
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Accrual for estimated environmental remediation costs | $ 4,979,000 | $ 12,770,000 | $ 16,761,000 | $ 21,651,000 |
Additions to accrual | 0 | 7,700,000 | $ 0 | |
Environmental liability, next 12 month | 2,200,000 | |||
Environmental liability thereafter | 2,800,000 | |||
Performance bonds outstanding | $ 14,600,000 | 10,400,000 | ||
Percent of salary as retirement income | 70.00% | |||
Payment of fixed retirement benefits | $ 25,013 | |||
Projected liability under retirement plan | $ 136,000 | $ 126,000 |
COMMITMENTS AND CONTINGENCIES54
COMMITMENTS AND CONTINGENCIES (Changes in Environmental Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Balances at the Beginning of the Period | $ 12,770 | $ 16,761 | $ 21,651 |
Additions to Accrual | 0 | 7,700 | 0 |
Expenditures for Remediation | 7,791 | 11,691 | 4,890 |
Balance at Period-end | $ 4,979 | $ 12,770 | $ 16,761 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended |
Dec. 31, 2017USD ($) | |
General Partners | |
Related Party Transaction [Line Items] | |
Management fees paid | $ 150,000 |
SEGMENT AND MAJOR CUSTOMER IN56
SEGMENT AND MAJOR CUSTOMER INFORMATION (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2017aSegment | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Number of segment | Segment | 3 | |
Customer one | Sales Revenue, Net | Customer Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Major customer percentage of consolidated revenue | 12.00% | 17.00% |
Customer two | Sales Revenue, Net | Customer Concentration Risk | ||
Segment Reporting Information [Line Items] | ||
Major customer percentage of consolidated revenue | 11.00% | |
Timberland Investment Management | Fund II | ||
Segment Reporting Information [Line Items] | ||
Area of land (in acres) | 31,000 | |
Timberland Investment Management | Fund III | ||
Segment Reporting Information [Line Items] | ||
Area of land (in acres) | 57,000 | |
Real Estate | ||
Segment Reporting Information [Line Items] | ||
Area of land (in acres) | 2,100 | |
Partnership | Fee Timber | ||
Segment Reporting Information [Line Items] | ||
Area of land (in acres) | 118,000 | |
Funds | Fee Timber | ||
Segment Reporting Information [Line Items] | ||
Area of land (in acres) | 88,000 |
SEGMENT AND MAJOR CUSTOMER IN57
SEGMENT AND MAJOR CUSTOMER INFORMATION (Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | $ 47,784 | $ 18,803 | $ 15,891 | $ 17,345 | $ 43,468 | $ 13,178 | $ 12,713 | $ 11,069 | $ 99,823 | $ 80,428 | $ 78,028 |
Cost of sales | (57,984) | (47,273) | (46,604) | ||||||||
Operating expenses | (24,334) | (20,829) | (19,644) | ||||||||
Environmental remediation | (7,700) | ||||||||||
Gain (loss) on sale of timberland | 12,547 | 995 | (1,103) | ||||||||
Income (loss) from operations | 14,570 | $ 1,805 | $ 993 | $ 12,684 | 4,316 | $ 1,985 | $ 142 | $ (822) | 30,052 | 5,621 | 10,677 |
Depreciation, Amortization and Depletion | 19,721 | 13,376 | 10,636 | ||||||||
Assets | 380,673 | 399,050 | 380,673 | 399,050 | 370,056 | ||||||
Capital and Land Expenditures | 21,656 | 55,758 | 21,656 | 55,758 | 67,735 | ||||||
Domestic forest products | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 56,657 | 47,255 | 41,636 | ||||||||
Export forest products, indirect | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 16,857 | 10,049 | 10,528 | ||||||||
Homes, lots, and undeveloped acreage | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 19,913 | 17,031 | 17,797 | ||||||||
Conservation easements and land sales | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 5,056 | 4,440 | 6,815 | ||||||||
Rentals and other Real Estate | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 1,331 | 1,645 | 1,252 | ||||||||
Fees for service | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 9 | 8 | 0 | ||||||||
Funds | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Assets | 244,846 | 266,399 | 244,846 | 266,399 | |||||||
Internal | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 103,960 | 84,201 | 80,749 | ||||||||
Operating expenses | (28,471) | (24,602) | (22,365) | ||||||||
Income (loss) from operations | 30,052 | 5,621 | 10,677 | ||||||||
Eliminations | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | (4,137) | (3,773) | (2,721) | ||||||||
Operating expenses | 4,137 | 3,773 | 2,721 | ||||||||
Income (loss) from operations | 0 | 0 | 0 | ||||||||
G&A | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Depreciation, Amortization and Depletion | 94 | 89 | 101 | ||||||||
Assets | 5,118 | 5,917 | 5,118 | 5,917 | 10,606 | ||||||
Capital and Land Expenditures | 58 | 20 | 58 | 20 | 79 | ||||||
Fee Timber | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 73,514 | 57,304 | 52,164 | ||||||||
Cost of sales | (41,784) | (32,642) | (30,089) | ||||||||
Operating expenses | (9,896) | (8,731) | (8,011) | ||||||||
Environmental remediation | 0 | ||||||||||
Gain (loss) on sale of timberland | 12,547 | 995 | (1,103) | ||||||||
Income (loss) from operations | 34,381 | 16,926 | 12,961 | ||||||||
Fee Timber | Partnership | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 39,672 | 36,275 | 28,914 | ||||||||
Cost of sales | (14,874) | (15,497) | (11,875) | ||||||||
Operating expenses | (6,003) | (6,024) | (5,367) | ||||||||
Environmental remediation | 0 | ||||||||||
Gain (loss) on sale of timberland | 0 | 769 | 0 | ||||||||
Income (loss) from operations | 18,795 | 15,523 | 11,672 | ||||||||
Fee Timber | Funds | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 33,842 | 21,029 | 23,250 | ||||||||
Cost of sales | (26,910) | (17,145) | (18,214) | ||||||||
Operating expenses | (3,893) | (2,707) | (2,644) | ||||||||
Environmental remediation | 0 | ||||||||||
Gain (loss) on sale of timberland | 12,547 | 226 | (1,103) | ||||||||
Income (loss) from operations | 15,586 | 1,403 | 1,289 | ||||||||
Fee Timber | Internal | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 73,846 | 57,507 | 52,507 | ||||||||
Operating expenses | (13,438) | (12,126) | (10,261) | ||||||||
Income (loss) from operations | 31,171 | 13,734 | 11,054 | ||||||||
Depreciation, Amortization and Depletion | 19,314 | 12,866 | 10,218 | ||||||||
Assets | 336,052 | 353,820 | 336,052 | 353,820 | 325,285 | ||||||
Capital and Land Expenditures | 13,976 | 41,604 | 13,976 | 41,604 | 57,731 | ||||||
Fee Timber | Internal | Partnership | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 40,004 | 36,478 | 29,257 | ||||||||
Operating expenses | (6,177) | (6,152) | (5,387) | ||||||||
Income (loss) from operations | 18,953 | 15,598 | 11,995 | ||||||||
Fee Timber | Internal | Funds | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 33,842 | 21,029 | 23,250 | ||||||||
Operating expenses | (7,261) | (5,974) | (4,874) | ||||||||
Income (loss) from operations | 12,218 | (1,864) | (941) | ||||||||
Fee Timber | Eliminations | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | (332) | (203) | (343) | ||||||||
Operating expenses | 3,542 | 3,395 | 2,250 | ||||||||
Income (loss) from operations | 3,210 | 3,192 | 1,907 | ||||||||
Fee Timber | Eliminations | Partnership | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | (332) | (203) | (343) | ||||||||
Operating expenses | 174 | 128 | 20 | ||||||||
Income (loss) from operations | (158) | (75) | (323) | ||||||||
Fee Timber | Eliminations | Funds | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Operating expenses | 3,368 | 3,267 | 2,230 | ||||||||
Income (loss) from operations | 3,368 | 3,267 | 2,230 | ||||||||
TIM | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 9 | 8 | 0 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Operating expenses | (3,188) | (2,628) | (2,625) | ||||||||
Environmental remediation | 0 | ||||||||||
Gain (loss) on sale of timberland | 0 | 0 | 0 | ||||||||
Income (loss) from operations | (3,179) | (2,620) | (2,625) | ||||||||
TIM | Internal | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 3,377 | 3,275 | 2,235 | ||||||||
Operating expenses | (3,593) | (2,888) | (2,953) | ||||||||
Income (loss) from operations | (216) | 387 | (718) | ||||||||
Depreciation, Amortization and Depletion | 32 | 33 | 18 | ||||||||
Assets | 83 | 325 | 83 | 325 | 182 | ||||||
Capital and Land Expenditures | 32 | 13 | 32 | 13 | 69 | ||||||
TIM | Eliminations | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | (3,368) | (3,267) | (2,235) | ||||||||
Operating expenses | 405 | 260 | 328 | ||||||||
Income (loss) from operations | (2,963) | (3,007) | (1,907) | ||||||||
Real Estate | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 26,300 | 23,116 | 25,864 | ||||||||
Cost of sales | (16,200) | (14,631) | (16,515) | ||||||||
Operating expenses | (5,508) | (4,394) | (4,036) | ||||||||
Environmental remediation | 0 | (7,700) | 0 | ||||||||
Gain (loss) on sale of timberland | 0 | 0 | 0 | ||||||||
Income (loss) from operations | 4,592 | (3,609) | 5,313 | ||||||||
Real Estate | Internal | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 26,737 | 23,419 | 26,007 | ||||||||
Operating expenses | (5,594) | (4,441) | (4,056) | ||||||||
Income (loss) from operations | 4,943 | (3,353) | 5,436 | ||||||||
Depreciation, Amortization and Depletion | 281 | 388 | 299 | ||||||||
Assets | 39,420 | 38,988 | 39,420 | 38,988 | 33,983 | ||||||
Real Estate | Internal | Development activities | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Capital and Land Expenditures | 7,588 | 13,993 | 7,588 | 13,993 | 9,631 | ||||||
Real Estate | Internal | Other | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Capital and Land Expenditures | 2 | 128 | 2 | 128 | 225 | ||||||
Real Estate | Eliminations | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | (437) | (303) | (143) | ||||||||
Operating expenses | 86 | 47 | 20 | ||||||||
Income (loss) from operations | (351) | (256) | (123) | ||||||||
Other | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Operating expenses | (5,742) | (5,076) | (4,972) | ||||||||
Environmental remediation | 0 | ||||||||||
Gain (loss) on sale of timberland | 0 | 0 | 0 | ||||||||
Income (loss) from operations | (5,742) | (5,076) | (4,972) | ||||||||
Other | Internal | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Operating expenses | (5,846) | (5,147) | (5,095) | ||||||||
Income (loss) from operations | (5,846) | (5,147) | (5,095) | ||||||||
Other | Eliminations | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Revenue | 0 | 0 | 0 | ||||||||
Operating expenses | 104 | 71 | 123 | ||||||||
Income (loss) from operations | 104 | 71 | 123 | ||||||||
Partnership | Fee Timber | Internal | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Depreciation, Amortization and Depletion | 4,122 | 3,771 | 2,174 | ||||||||
Assets | 91,206 | 87,419 | 91,206 | 87,419 | 49,499 | ||||||
Capital and Land Expenditures | 7,168 | 40,745 | 7,168 | 40,745 | 5,877 | ||||||
Funds | Fee Timber | Internal | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||||||||||
Depreciation, Amortization and Depletion | 15,192 | 9,095 | 8,044 | ||||||||
Assets | 244,846 | 266,401 | 244,846 | 266,401 | 275,786 | ||||||
Capital and Land Expenditures | $ 6,808 | $ 859 | $ 6,808 | $ 859 | $ 51,854 |
QUARTERLY FINANCIAL INFORMATI58
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 47,784 | $ 18,803 | $ 15,891 | $ 17,345 | $ 43,468 | $ 13,178 | $ 12,713 | $ 11,069 | $ 99,823 | $ 80,428 | $ 78,028 |
Income (loss) from operations | 14,570 | 1,805 | 993 | 12,684 | 4,316 | 1,985 | 142 | (822) | 30,052 | 5,621 | 10,677 |
Net and comprehensive income (loss) attributable to unitholders | $ 12,705 | $ 1,658 | $ 158 | $ 3,370 | $ 4,571 | $ 1,970 | $ 436 | $ (1,034) | $ 17,891 | $ 5,942 | $ 10,943 |
Basic and diluted earnings (loss) per unit (in dollars per share) | $ 2.92 | $ 0.38 | $ 0.03 | $ 0.77 | $ 1.05 | $ 0.45 | $ 0.09 | $ (0.25) | $ 4.10 | $ 1.35 | $ 2.51 |
QUARTERLY FINANCIAL INFORMATI59
QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jan. 31, 2017USD ($)Property | Mar. 31, 2017USD ($)Property | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Quarterly Financial Information [Line Items] | ||||||
Environmental remediation expense | $ 7,700 | |||||
Pretax profit (loss) | $ 25,581 | $ 2,215 | $ 7,707 | |||
Fund II | ||||||
Quarterly Financial Information [Line Items] | ||||||
Number of tree farms sold | Property | 1 | 1 | ||||
Proceeds from sale of tree farms | $ 26,500 | $ 26,500 | ||||
Land | Fund II | ||||||
Quarterly Financial Information [Line Items] | ||||||
Pretax profit (loss) | $ 12,500 | $ 12,500 | $ (23) | $ (9) |