VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

ORM Timber Fund II, Inc. (Fund II), ORM Timber Fund III LLC (Fund III), and ORM Timber Fund IV LLC. (Fund IV) (Collectively, the “Funds”)

In the Mergers, we became manager of three private equity timber funds, Fund II, Fund III, and Fund IV, and obtained ownership interests in the Funds of 20%, 5%, and 15%, respectively. We determined, based upon an analysis under the variable interest entity guidance, that we have the power to direct the activities that most significantly impact the Funds’ economic success. Therefore, we are considered the primary beneficiary and are required under ASC 810 — Consolidation to consolidate the Funds. For further information on the Funds, see Note 5 — Noncontrolling Interests.

The assets, liabilities and equity of the Funds as of September 30, 2020, were as follows:

Timber Funds	September 30, 2020
Assets:
Cash and cash equivalents	$2,973
Accounts receivable	4,437
Prepaid expenses	38
Other current assets	361
Total current assets	7,809
Timber and timberlands, net of depletion and amortization	452,777
Total assets	$460,586
Liabilities and Equity:
Accounts payable	$907
Intercompany payable (a)	552
Accrued taxes	353
Accrued interest	432
Deferred revenue	275
Other current liabilities	732
Total current liabilities	3,251
Long-term debt, net of deferred financing costs	60,391
Funds’ equity	396,944
Total liabilities and equity	$460,586

(a)Includes management fees and other expenses payable to the Operating Partnership. These amounts are eliminated in the Consolidated Balance Sheets.

Ferncliff Investors

We also acquired in the Mergers an ownership interest in a real estate joint venture entity. We determined, based upon an analysis under the variable interest entity guidance, that we have the power to direct the activities that most significantly impact the joint venture’s economic success. Therefore, we are considered the primary beneficiary and are required under ASC 810 — Consolidation to consolidate Ferncliff Investors. For further information on Ferncliff Investors, see Note 5 — Noncontrolling Interests.

The assets, liabilities and equity of Ferncliff Investors as of September 30, 2020, were as follows:

Ferncliff Investors	September 30, 2020
Assets:
Cash and cash equivalents	$2
Prepaid expenses	740
Total current assets	742
Investment in real estate joint venture entity	2,927
Advances to real estate joint venture entity	1,000
Total assets	$4,669
Liabilities and equity:
Intercompany payable (a)	$8
Total current liabilities	8
Ferncliff Investors’ equity	4,661
Total liabilities and equity	$4,669

(a)Includes miscellaneous expenses payable to the Operating Partnership. These amounts are eliminated in the Consolidated Balance Sheets.