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Segment Information
12 Months Ended
Dec. 31, 2011
Segment Reporting Information, Additional Information [Abstract]  
Segment Reporting Disclosure [Text Block]
Segment Information
As of December 31, 2011, our businesses are organized into three reportable operating segments: Resource; Real Estate; and Wood Products. Our Resource segment manages our timberlands to optimize revenue producing opportunities while adhering to our strict stewardship standards. Management activities include planting and harvesting trees and building and maintaining roads. The Resource segment also seeks to increase our revenues from non-timber resources such as from hunting leases, recreation permits and leases, biomass production, carbon sequestration, mineral rights leases and various other leasing opportunities. The activities of our Real Estate segment consist primarily of the sale of selected non-core timberland real estate. The Real Estate segment engages in real estate subdivision and development activities through Potlatch TRS and also plays an active role in negotiations for all timberland acquisitions. Our Wood Products segment manufactures and markets lumber and plywood.
The reporting segments follow the same accounting policies used for our consolidated financial statements, as described in the summary of principal accounting policies, with the exception of the valuation of inventories. All segment inventories are reported using the average cost method and the LIFO reserve is recorded at the corporate level. Management evaluates a segment’s performance based upon profit or loss from operations before income taxes. Intersegment revenues are recorded based on prevailing market prices.
The following table presents business segment information for each of the past three years. Corporate information is included to reconcile segment data to the consolidated financial statements.
(Dollars in thousands)
 
 
2011

2010

2009

Segment Revenues:
 
 
 
Resource
$
226,969

$
225,834

$
234,411

Real Estate
50,029

85,226

65,353

Wood Products
271,580

273,887

216,592

 
548,578

584,947

516,356

Elimination of intersegment revenues - Resource1
(51,157
)
(45,500
)
(40,187
)
Total consolidated revenues
$
497,421

$
539,447

$
476,169

Operating Income (Loss):
 
 
 
Resource
$
59,792

$
62,107

$
81,774

Real Estate
31,384

30,425

48,928

Wood Products
7,267

7,140

(20,484
)
Eliminations and adjustments
2,410

1,900

7,863

 
100,853

101,572

118,081

Corporate
(56,442
)
(56,701
)
(53,298
)
Earnings from continuing operations before taxes
$
44,411

$
44,871

$
64,783

Depreciation, depletion and amortization:2
 
 
 
Resource
$
17,420

$
20,481

$
23,366

Real Estate
28



Wood Products
7,829

8,188

9,675

 
25,277

28,669

33,041

Corporate
3,815

2,535

1,674

Total depreciation, depletion and amortization
$
29,092

$
31,204

$
34,715

Basis of real estate sold:
 
 
 
Real Estate
$
13,500

$
48,670

$
10,696

Elimination and adjustments
(3,281
)


Total basis of real estate sold
$
10,219

$
48,670

$
10,696

Assets:
 
 
 
Resource and Real Estate3
$
476,483

$
495,780

$
604,617

Wood Products
102,957

98,987

126,301

 
579,440

594,767

730,918

Corporate
166,780

186,944

92,647

Total consolidated assets
$
746,220

$
781,711

$
823,565

Capital Expenditures:
 
 
 
Resource and Real Estate3
$
12,003

$
11,534

$
12,431

Wood Products
4,050

1,896

1,466

 
16,053

13,430

13,897

Corporate
833

1,571

1,800

Total capital expenditures
$
16,886

$
15,001

$
15,697


1  
Intersegment revenues for 2009-2011, which were based on prevailing market prices, consisted of logs sold by our Resource segment to the Wood Products segment.
2 
Excludes $1.2 million and $3.0 million asset impairment charges in 2011 and 2009, respectively.
3 
Assets and capital expenditures are shown on a combined basis for the Resource and Real Estate segments, as we do not produce such internal information separately for those segments. Capital expenditures for the Resource and Real Estate segments include capitalized reforestation costs, logging road construction, additions to timber and timberlands, deposits on timberlands for reverse LKE transactions, and additions to equipment. Not included in additions to timber and timberlands for 2011, 2010 and 2009 are non-cash transactions totaling $0.3 million, $0 and $0.2 million, respectively, for the purchase of timberlands.
All of our wood products facilities and all other assets are located within the continental United States. However, we also sell and ship products to Canada and Mexico. Geographic information regarding our revenues is summarized as follows:
(Dollars in thousands)
 
 
2011

2010

2009

United States
$
490,409

$
532,862

$
471,016

Canada
4,646

5,959

4,802

Mexico
2,366

626

351

Total consolidated revenues
$
497,421

$
539,447

$
476,169