SEGMENT AND GEOGRAPHICAL INFORMATION

Management has changed how it internally evaluates the business performance of its New Zealand Timber segment. In order to align segment reporting, the Company has reclassified New Zealand timberland sales from the New Zealand Timber segment to the Real Estate segment. All prior period amounts previously reported have been reclassified to reflect the realigned segments.

Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation. The Company evaluates financial performance based on segment operating income and Adjusted EBITDA. Asset information is not reported by segment, as the Company does not produce asset information by segment internally.

Operating income as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include interest expense, interest and other miscellaneous income and income tax expense, are not considered by management to be part of segment operations and are included under “Corporate and other” or “unallocated interest expense and other.”

The following tables summarize the segment information for the three and nine months ended September 30, 2018 and 2017:



	Three Months Ended September 30,					Nine Months Ended September 30,
SALES	2018			2017		2018			2017
Southern Timber		$39,662			$37,301		$131,298			$111,967
Pacific Northwest Timber	27,815			19,097		91,402			65,480
New Zealand Timber	66,265			70,095		188,882			163,980
Real Estate (a)	36,168			17,240		122,092			121,460
Trading	31,010			40,686		116,383			116,987
Intersegment Eliminations	(30		)	—		(66		)	—
Total		$200,890			$184,419		$649,991			$579,874

(a) The nine months ended September 30, 2017 includes $42.0 million of Large Dispositions.



	Three Months Ended September 30,						Nine Months Ended September 30,
OPERATING INCOME (LOSS)	2018			2017			2018			2017
Southern Timber		$9,183			$11,436			$37,061			$35,031
Pacific Northwest Timber	1,911			1,134			12,209			(1,278		)
New Zealand Timber	16,416			19,280			50,141			41,510
Real Estate (a)	24,726			11,437			71,645			72,052
Trading	304			1,142			680			3,380
Corporate and other	(6,162		)	(5,158		)	(16,639		)	(15,269		)
Total Operating Income	46,378			39,271			155,097			135,426
Unallocated interest expense and other	(7,343		)	(7,425		)	(19,972		)	(23,950		)
Total Income before Income Taxes		$39,035			$31,846			$135,125			$111,476

(a) The nine months ended September 30, 2017 includes $28.2 million of Large Dispositions.



	Three Months Ended September 30,				Nine Months Ended September 30,
DEPRECIATION, DEPLETION AND AMORTIZATION	2018		2017		2018		2017
Southern Timber		$13,672		$12,736		$44,591		$37,092
Pacific Northwest Timber	7,802		6,481		26,687		23,766
New Zealand Timber	7,544		8,478		21,287		20,477
Real Estate (a)	5,491		735		22,296		22,902
Trading	—		—		—		—
Corporate and other	297		277		865		469
Total		$34,806		$28,707		$115,726		$104,706

(a) The nine months ended September 30, 2017 includes $8.1 million from Large Dispositions.



NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT	Three Months Ended September 30,				Nine Months Ended September 30,
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT	2018		2017		2018		2017
Southern Timber	—		—		—		—
Pacific Northwest Timber	—		—		—		—
New Zealand Timber	—		—		—		—
Real Estate (a)	2,115		1,272		17,051		14,374
Trading	—		—		—		—
Total		$2,115		$1,272		$17,051		$14,374

(a) The nine months ended September 30, 2017 includes $5.7 million from Large Dispositions.