HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of Costs for Land, Timber and Real Estate Development

Changes in higher and better use timberlands and real estate development investments from December 31, 2020 to June 30, 2021 are shown below:


	Higher and Better Use Timberlands and Real Estate Development Investments
	Land and Timber	Development Investments	Total
Non-current portion at December 31, 2020	$79,901	$28,617	$108,518
Plus: Current portion (a)	212	6,544	6,756
Total Balance at December 31, 2020	80,113	35,161	115,274
Non-cash cost of land and improved development	(3,106)	(1,657)	(4,763)
Amortization of parcel real estate development investments	—	(3,211)	(3,211)
Timber depletion from harvesting activities and basis of timber sold in real estate sales	(584)	—	(584)
Capitalized real estate development investments (b)	—	12,095	12,095
Capital expenditures (silviculture)	51	—	51

Intersegment transfers	1,176	—	1,176
Purchase price allocation adjustment (c)	8,238	—	8,238

Total Balance at June 30, 2021	85,888	42,388	128,276
Less: Current portion (a)	(8,686)	(16,026)	(24,712)
Non-current portion at June 30, 2021	$77,202	$26,362	$103,564

(a)The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 17 — Inventory for additional information.

(b)Capitalized real estate development investments include $0.3 million of capitalized interest and $5.8 million of parcel real estate development investments. Parcel real estate development investments represent investments made for specific lots and/or commercial parcels that are currently under contract or expected to be ready for market within a year.

(c)Reflects measurement period adjustments on HBU properties acquired in the merger with Pope Resources. The final allocation of fair value to HBU properties acquired in the merger is approximately $34.7 million. This includes development properties in the town of Port Gamble, Washington, development projects in Gig Harbor, Kingston, and Bremerton, Washington and various other assets. See Note 2 - Merger with Pope Resources for additional information.