Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document And Entity Information [Abstract] | ||
Trading Symbol | POPE | |
Entity Registrant Name | POPE RESOURCES LTD PARTNERSHIP | |
Entity Central Index Key | 784,011 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 4,336,323 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Partnership cash and cash equivalents | $ 16,532 | $ 14,505 |
ORM Timber Funds cash | 6,591 | 9,523 |
Cash and cash equivalents | 23,123 | 24,028 |
Short-term investments | 0 | 1,000 |
Accounts receivable, net | 1,022 | 2,419 |
Land and timber held for sale | 2,526 | 7,160 |
Prepaid expenses and other | 5,380 | 2,873 |
Total current assets | 32,051 | 37,480 |
Properties and equipment, at cost | ||
Timber and roads, net of accumulated depletion (2015 - $98,227; 2014 - $93,359) | 225,737 | 227,144 |
Timberland | 48,272 | 47,933 |
Land held for development | 28,879 | 26,040 |
Buildings and equipment, net of accumulated depreciation (2015 - $7,133; 2014 - $6,849) | 5,920 | 6,039 |
Total property and equipment, at cost | 308,808 | 307,156 |
Other assets | 527 | 441 |
Total assets | 341,386 | 345,077 |
Current liabilities | ||
Accounts payable | 829 | 1,293 |
Accrued liabilities | 3,372 | 3,196 |
Current portion of long-term debt | 5,111 | 5,109 |
Deferred revenue | 731 | 668 |
Current portion of environmental remediation liability | 12,488 | 3,700 |
Other current liabilities | 308 | 248 |
Total current liabilities | 22,839 | 14,214 |
Long-term debt, net of current portion | 84,816 | 84,872 |
Environmental remediation and other long-term liabilities | 8,733 | 18,362 |
Partners' capital and noncontrolling interests | ||
General partners' capital (units issued and outstanding 2015 - 60; 2014 - 60) | 1,049 | 1,003 |
Limited partners' capital (units issued and outstanding 2015 - 4,238; 2014 - 4,224) | 66,433 | 63,213 |
Noncontrolling interests | 157,516 | 163,413 |
Total partners' capital and noncontrolling interests | 224,998 | 227,629 |
Total liabilities, partners' capital and noncontrolling interests | $ 341,386 | $ 345,077 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Timber and roads, accumulated depletion | $ 98,227 | $ 93,359 |
Buildings and equipment, accumulated depreciation | $ 7,113 | $ 6,849 |
General partners' capital, units issued | 60,000 | 60,000 |
General partners' capital, units outstanding | 60,000 | 60,000 |
Limited partners' capital, units issued | 4,238,000 | 4,224,000 |
Limited partners' capital, units outstanding | 4,238,000 | 4,224,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 13,904 | $ 18,583 | $ 40,812 | $ 56,362 |
Cost of sales | (8,815) | (11,377) | (23,312) | (30,301) |
Operating expenses | (3,711) | (3,619) | (6,859) | (6,904) |
General and administrative expenses | (1,198) | (450) | (2,388) | (1,772) |
Income from operations | 180 | 3,137 | 8,253 | 17,385 |
Interest expense, net | (777) | (629) | (1,522) | (1,203) |
Income (loss) before income taxes | (597) | 2,508 | 6,731 | 16,182 |
Income tax expense | (28) | (69) | (368) | (226) |
Net income (loss) | (625) | 2,439 | 6,363 | 15,956 |
Net (income) loss attributable to noncontrolling interests - ORM Timber Funds | 914 | (593) | 1,735 | (1,869) |
Net and comprehensive income attributable to unitholders | 289 | 1,846 | 8,098 | 14,087 |
Allocable to general partners | 4 | 25 | 113 | 193 |
Allocable to limited partners | 285 | 1,821 | 7,985 | 13,894 |
Net and comprehensive income attributable to unitholders | $ 289 | $ 1,846 | $ 8,098 | $ 14,087 |
Basic and diluted earnings per unit attributable to unitholders (in dollars per unit) | $ 0.06 | $ 0.41 | $ 1.87 | $ 3.17 |
Basic and diluted weighted average units outstanding | 4,298 | 4,391 | 4,296 | 4,389 |
Distributions per unit (in dollars per unit) | $ 0.65 | $ 0.65 | $ 1.30 | $ 1.20 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 6,363 | $ 15,956 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depletion | 4,948 | 6,451 |
Equity-based compensation | 580 | 521 |
Excess tax benefit of equity-based compensation | (5) | 0 |
Depreciation and amortization | 314 | 359 |
Deferred taxes | 203 | 94 |
Cost of land sold | 6,503 | 7,618 |
Gain on disposal of property and equipment | 0 | (1) |
Cash flows from changes in operating accounts | ||
Accounts receivable, net | 1,397 | (1,321) |
Prepaid expenses and other assets | (2,735) | (43) |
Real estate project expenditures | (4,615) | (2,128) |
Accounts payable and accrued liabilities | (288) | (2,040) |
Deferred revenue | 64 | 743 |
Environmental remediation | (572) | (214) |
Other current and long-term liabilities | 35 | (4) |
Net cash provided by operating activities | 12,192 | 25,991 |
Cash flows from investing activities | ||
Purchase of short-term investments | 0 | (3,000) |
Maturity of short-term investments | 1,000 | 0 |
Reforestation and roads | (1,098) | (1,083) |
Buildings and equipment | (166) | (142) |
Acquisition of timberland | (2,876) | 0 |
Net cash used in investing activities | (3,140) | (4,225) |
Cash flows from financing activities | ||
Repayment of long-term debt | (55) | (55) |
Proceeds from preferred stock issuance - ORM Timber Funds | 0 | 125 |
Payroll taxes paid on unit net settlements | (107) | (196) |
Excess tax benefit of equity-based compensation | 5 | 0 |
Cash distributions to unitholders | (5,637) | (5,343) |
Cash distributions - ORM Timber Funds, net of distributions to Partnership | (4,163) | (5,613) |
Net cash used in financing activities | (9,957) | (11,082) |
Net increase (decrease) in cash and cash equivalents | (905) | 10,684 |
Cash and cash equivalents at beginning of period | 24,028 | 6,960 |
Cash and cash equivalents at end of period | $ 23,123 | $ 17,644 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | The condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014 and the related condensed consolidated statements of comprehensive income for the three- and six-month periods and cash flows for the six-month periods ended June 30, 2015 and 2014 have been prepared by Pope Resources, A Delaware Limited Partnership (the “Partnership”), pursuant to the rules and regulations of the Securities and Exchange Commission. The condensed consolidated financial statements are unaudited, but, in the opinion of management, reflect all adjustments (consisting only of normal recurring adjustments and accruals) necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods. The financial information as of December 31, 2014 , is derived from the Partnership’s audited consolidated financial statements and notes thereto for the year ended December 31, 2014 , and should be read in conjunction with such financial statements and notes. The results of operations for the interim periods are not indicative of the results of operations that may be achieved for the entire fiscal year ending December 31, 2015 . |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | The financial statements in the Partnership’s 2014 annual report on Form 10-K include a summary of significant accounting policies of the Partnership and should be read in conjunction with this Quarterly Report on Form 10-Q. On May 28, 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective on January 1, 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. The Partnership is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures. The Partnership has not yet selected a transition method nor has it determined the effect of the standard on its ongoing financial reporting. On April 7, 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated liability. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, though early adoption is permitted, and the new guidance is to be applied on a retrospective basis. As of June 30, 2015, the Partnership has $242,000 in debt issuance costs that will be reclassified from other assets to long-term debt, net of current portion on the balance sheet when it adopts this standard. |
Partners' Capital Notes Disclos
Partners' Capital Notes Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Partners' Capital Notes Disclosure | 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, profits and losses between the general and limited partners is pro rata across all units outstanding. |
Balance Sheet Of Partnership Co
Balance Sheet Of Partnership Co-Investments | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Of Partnership Co-Investments | ORM Timber Fund I, LP (Fund I), ORM Timber Fund II, Inc. (Fund II), and ORM Timber Fund III (REIT) Inc. (Fund III), collectively “the Funds”, were formed by Olympic Resource Management LLC (ORMLLC), a wholly owned subsidiary of Pope Resources, 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 will operate for a term of ten years from the end of the respective investment period. Fund I has sold all its timberland holdings and will terminate in 2015, prior to its scheduled termination in August 2017. Fund II is scheduled to terminate in March 2021 and Fund III will terminate on the tenth anniversary of the completion of its investment period. Fund III’s investment period will end at the earlier of placement of all committed capital or July 31, 2016. Pope Resources and ORMLLC together own 20% of Funds I and II and 5% of Fund III. The Funds are consolidated into the Partnership’s financial statements based in part on ORMLLC’s controlling role as the general partner or managing member of the Funds. The consolidated financial statements exclude management fees paid by the Funds to ORMLLC as they are eliminated in consolidation. See note 5 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 Condensed Consolidated Statement of Comprehensive Income under the caption “Net (income) loss attributable to noncontrolling interests - ORM Timber Funds.” The Partnership’s condensed consolidated balance sheet included assets and liabilities of the Funds as of June 30, 2015 and December 31, 2014 , which were as follows: (in thousands) June 30, 2015 December 31, 2014 Assets: Cash $ 6,591 $ 9,523 Other current assets 696 1,108 Total current assets 7,287 10,631 Properties and equipment, net of accumulated depletion and depreciation (2015 - $30,676; 2014 - $26,738) 226,863 230,123 Other long-term assets 145 156 Total assets $ 234,295 $ 240,910 Liabilities and equity: Current liabilities $ 2,161 $ 1,891 Long-term debt 57,380 57,380 Total liabilities 59,541 59,271 Funds' equity 174,754 181,639 Total liabilities and equity $ 234,295 $ 240,910 |
Segment Reporting Disclosure
Segment Reporting Disclosure | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure | In the presentation of the Partnership’s revenue and operating income (loss) by segment, all intersegment revenue and expense is eliminated to determine operating income (loss) reported externally. The following tables reconcile internally reported income (loss) from operations to externally reported income (loss) from operations by business segment, for the three and six months ended June 30, 2015 and 2014 : Fee Timber Three Months Ended Pope ORM Timber Total Fee Timberland Real June 30, (in thousands) Resources Funds Timber Management Estate Other Consolidated 2015 Revenue - internal $ 4,835 $ 4,501 $ 9,336 $ 767 $ 4,665 $ — $ 14,768 Eliminations (64 ) — (64 ) (767 ) (33 ) — (864 ) Revenue - external 4,771 4,501 9,272 — 4,632 — 13,904 Cost of sales (2,301 ) (3,537 ) (5,838 ) — (2,977 ) — (8,815 ) Operating, general and administrative expenses - internal (1,206 ) (1,407 ) (2,613 ) (849 ) (1,084 ) (1,227 ) (5,773 ) Eliminations — 767 767 64 4 29 864 Operating, general and administrative expenses - external (1,206 ) (640 ) (1,846 ) (785 ) (1,080 ) (1,198 ) (4,909 ) Income (loss) from operations - internal 1,328 (443 ) 885 (82 ) 604 (1,227 ) 180 Eliminations (64 ) 767 703 (703 ) (29 ) 29 — Income (loss) from operations - external $ 1,264 $ 324 $ 1,588 $ (785 ) $ 575 $ (1,198 ) $ 180 2014 Revenue - internal $ 8,884 $ 8,772 $ 17,656 $ 840 $ 1,118 $ — $ 19,614 Eliminations (161 ) — (161 ) (840 ) (30 ) — (1,031 ) Revenue - external 8,723 8,772 17,495 — 1,088 — 18,583 Cost of sales (4,244 ) (6,091 ) (10,335 ) — (1,042 ) — (11,377 ) Operating, general and administrative expenses - internal (1,430 ) (1,521 ) (2,951 ) (671 ) (998 ) (480 ) (5,100 ) Eliminations — 840 840 161 — 30 1,031 Operating, general and administrative expenses -external (1,430 ) (681 ) (2,111 ) (510 ) (998 ) (450 ) (4,069 ) Income (loss) from operations - internal 3,210 1,160 4,370 169 (922 ) (480 ) 3,137 Eliminations (161 ) 840 679 (679 ) (30 ) 30 — Income (loss) from operations - external $ 3,049 $ 2,000 $ 5,049 $ (510 ) $ (952 ) $ (450 ) $ 3,137 Fee Timber Six Months Ended Pope ORM Timber Total Fee Timberland Real June 30, (in thousands) Resources Funds Timber Management Estate Other Consolidated 2015 Revenue - internal $ 13,707 $ 11,657 $ 25,364 $ 1,601 $ 15,661 $ — $ 42,626 Eliminations (146 ) — (146 ) (1,601 ) (67 ) — (1,814 ) Revenue - external 13,561 11,657 25,218 — 15,594 — 40,812 Cost of sales (5,908 ) (9,532 ) (15,440 ) — (7,872 ) — (23,312 ) Operating, general and administrative expenses - internal (2,301 ) (2,630 ) (4,931 ) (1,660 ) (2,024 ) (2,446 ) (11,061 ) Eliminations — 1,601 1,601 146 9 58 1,814 Operating, general and administrative expenses - external (2,301 ) (1,029 ) (3,330 ) (1,514 ) (2,015 ) (2,388 ) (9,247 ) Income (loss) from operations - internal 5,498 (505 ) 4,993 (59 ) 5,765 (2,446 ) 8,253 Eliminations (146 ) 1,601 1,455 (1,455 ) (58 ) 58 — Income (loss) from operations - external $ 5,352 $ 1,096 $ 6,448 $ (1,514 ) $ 5,707 $ (2,388 ) $ 8,253 2014 Revenue - internal $ 20,182 $ 19,737 $ 39,919 $ 1,715 $ 16,817 $ — $ 58,451 Eliminations (315 ) — (315 ) (1,715 ) (59 ) — (2,089 ) Revenue - external 19,867 19,737 39,604 — 16,758 — 56,362 Cost of sales (8,154 ) (13,285 ) (21,439 ) — (8,862 ) — (30,301 ) Operating, general and administrative expenses - internal (2,530 ) (3,080 ) (5,610 ) (1,435 ) (1,889 ) (1,831 ) (10,765 ) Eliminations — 1,715 1,715 315 — 59 2,089 Operating, general and administrative expenses - external (2,530 ) (1,365 ) (3,895 ) (1,120 ) (1,889 ) (1,772 ) (8,676 ) Income (loss) from operations - internal 9,498 3,372 12,870 280 6,066 (1,831 ) 17,385 Eliminations (315 ) 1,715 1,400 (1,400 ) (59 ) 59 — Income (loss) from operations - external $ 9,183 $ 5,087 $ 14,270 $ (1,120 ) $ 6,007 $ (1,772 ) $ 17,385 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic and diluted earnings per unit are calculated by dividing net income attributable to unitholders, adjusted for non-forfeitable distributions paid out to unvested restricted unitholders and preferred shareholders of Fund II and Fund III, by the weighted average units outstanding during the period. There were no dilutive securities outstanding during the periods presented. The following table shows the calculation of basic and diluted income per unit: Quarter Ended Six Months Ended (in thousands, except per unit amounts) 2015 2014 2015 2014 Net income attributable to Pope Resources' unitholders $ 289 $ 1,846 $ 8,098 $ 14,087 Less: Net income attributable to unvested restricted unitholders (25 ) (30 ) (37 ) (175 ) Preferred share dividends - ORM Timber Funds (8 ) (8 ) (16 ) (16 ) Net income for calculation of EPS $ 256 $ 1,808 $ 8,045 $ 13,896 Basic and diluted weighted average units outstanding 4,298 4,391 4,296 4,389 Basic and diluted earnings per unit $ 0.06 $ 0.41 $ 1.87 $ 3.17 |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | In the first quarter of 2015 , the Partnership granted 7,550 restricted units pursuant to the management incentive compensation program. These restricted units vest ratably over four years with the grant date fair value equal to the market price on the date of grant. Simultaneous with the restricted unit grant to management, members of our Board of Directors received 4,500 restricted units. Restricted units granted to directors are not part of the management incentive compensation program, but are included in the calculation of total equity compensation expense. These awards to directors vest 50% on the third anniversary and 50% on the fourth anniversary of the date of grant. Total equity compensation expense is recognized over the vesting period. Grants to retirement-eligible individuals on the date of grant are expensed immediately. We recognized $242,000 and $72,000 of equity compensation expense in the second quarter of 2015 and 2014 , respectively, and $580,000 and $521,000 for the six months ended June 30, 2015 and 2014 , respectively, related to these incentive compensation programs. |
Cash Flow, Supplemental Disclos
Cash Flow, Supplemental Disclosures | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures | Supplemental disclosure of cash flow information: interest paid, net of amounts capitalized, totaled $1.4 million and $1.0 million for the first six months of 2015 and 2014 , respectively. The Partnership paid income taxes of $205,000 and $33,000 during the first six months of 2015 and 2014 , respectively. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | The Partnership’s financial instruments include cash and cash equivalents, short-term investments and accounts receivable, as well as $4.4 million of funds held in escrow included in prepaid expenses and other current assets, 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, although long-term, also approximate fair value based on current market rates. The Partnership’s and the Funds’ fixed-rate debt collectively have a carrying value of $90.0 million as of June 30, 2015 and December 31, 2014 . The estimated fair value of this debt, based on current interest rates for similar instruments (Level 2 inputs in the Fair Value Hierarchy), is approximately $94.7 million and $96.0 million , as of June 30, 2015 and December 31, 2014 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The Partnership had an accrual for estimated environmental remediation costs of $21.1 million and $21.7 million as of June 30, 2015 and December 31, 2014 , respectively. The environmental remediation liability represents management’s estimate of payments to be made to monitor and remediate certain areas in and around Port Gamble Bay, and at Port Ludlow, Washington. In December of 2013, a consent decree and Clean-up Action Plan (CAP) related to Port Gamble were finalized with the Department of Ecology (DOE) and filed with Kitsap County Superior Court. During the second quarter of 2015, there were two developments with respect to the project: additional cost information obtained from contractor bids for the construction work, and an unfavorable litigation outcome. These two developments offset one another, resulting in no change to the overall estimated project liability, other than for payments made during the quarter. The design of the remediation project was substantially completed in the second quarter of 2015 and the Partnership received bids from contractors to complete the remediation work. Management's cost estimates for the project are based on these bids. In addition, on June 8, 2015, Kitsap County Superior Court ruled on summary judgment that Washington’s Department of Natural Resources (DNR) did not qualify as an owner or operator of the site and therefore did not have liability under Washington’s Model Toxics Control Act (MTCA). The effect of the court’s ruling is to absolve DNR of any responsibility to contribute to the cost of cleanup at Port Gamble. The Court issued its ruling without making findings of fact or conclusions of law. Management has appealed the Superior Court’s ruling, and believes it has a strong case for overturning the lower court’s decision. While management remains optimistic about the appeal process and the ultimate outcome of this litigation, management has adjusted the liability to reflect its best estimate of the cost of the project without any contribution by DNR. The environmental remediation liability also includes estimated costs related to a separate remediation effort within the resort community of Port Ludlow. The liability for this project consists primarily of ongoing monitoring activity. The environmental liability at June 30, 2015 is comprised of $12.5 million that management expects to expend in the next 12 months and $8.6 million thereafter. Activity in the environmental liability is as follows: Balance at the Beginning Additions to Expenditures for Balance at (in thousands) of the Period Accrual Remediation Period-end Year ended December 31, 2013 $ 13,942 $ — $ 701 $ 13,241 Year ended December 31, 2014 13,241 10,000 1,590 21,651 Quarter ended March 31, 2015 21,651 — 286 21,365 Quarter ended June 30, 2015 $ 21,365 $ — $ 286 $ 21,079 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | On August 6, 2015, the Partnership closed on the sale of a multi-family residential parcel for $4.2 million from its Harbor Hill project in Gig Harbor, Washington. |
Balance Sheet Of Partnership 17
Balance Sheet Of Partnership Co-Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Partnership's Consolidated Balance Sheet included Assets and Liabilities of Funds | The Partnership’s condensed consolidated balance sheet included assets and liabilities of the Funds as of June 30, 2015 and December 31, 2014 , which were as follows: (in thousands) June 30, 2015 December 31, 2014 Assets: Cash $ 6,591 $ 9,523 Other current assets 696 1,108 Total current assets 7,287 10,631 Properties and equipment, net of accumulated depletion and depreciation (2015 - $30,676; 2014 - $26,738) 226,863 230,123 Other long-term assets 145 156 Total assets $ 234,295 $ 240,910 Liabilities and equity: Current liabilities $ 2,161 $ 1,891 Long-term debt 57,380 57,380 Total liabilities 59,541 59,271 Funds' equity 174,754 181,639 Total liabilities and equity $ 234,295 $ 240,910 |
Segment Reporting Disclosure (T
Segment Reporting Disclosure (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Reconciliation of Internally Reported Income (Loss) from Operations to Externally Reported Income (Loss) from Operations by Business Segment | The following tables reconcile internally reported income (loss) from operations to externally reported income (loss) from operations by business segment, for the three and six months ended June 30, 2015 and 2014 : Fee Timber Three Months Ended Pope ORM Timber Total Fee Timberland Real June 30, (in thousands) Resources Funds Timber Management Estate Other Consolidated 2015 Revenue - internal $ 4,835 $ 4,501 $ 9,336 $ 767 $ 4,665 $ — $ 14,768 Eliminations (64 ) — (64 ) (767 ) (33 ) — (864 ) Revenue - external 4,771 4,501 9,272 — 4,632 — 13,904 Cost of sales (2,301 ) (3,537 ) (5,838 ) — (2,977 ) — (8,815 ) Operating, general and administrative expenses - internal (1,206 ) (1,407 ) (2,613 ) (849 ) (1,084 ) (1,227 ) (5,773 ) Eliminations — 767 767 64 4 29 864 Operating, general and administrative expenses - external (1,206 ) (640 ) (1,846 ) (785 ) (1,080 ) (1,198 ) (4,909 ) Income (loss) from operations - internal 1,328 (443 ) 885 (82 ) 604 (1,227 ) 180 Eliminations (64 ) 767 703 (703 ) (29 ) 29 — Income (loss) from operations - external $ 1,264 $ 324 $ 1,588 $ (785 ) $ 575 $ (1,198 ) $ 180 2014 Revenue - internal $ 8,884 $ 8,772 $ 17,656 $ 840 $ 1,118 $ — $ 19,614 Eliminations (161 ) — (161 ) (840 ) (30 ) — (1,031 ) Revenue - external 8,723 8,772 17,495 — 1,088 — 18,583 Cost of sales (4,244 ) (6,091 ) (10,335 ) — (1,042 ) — (11,377 ) Operating, general and administrative expenses - internal (1,430 ) (1,521 ) (2,951 ) (671 ) (998 ) (480 ) (5,100 ) Eliminations — 840 840 161 — 30 1,031 Operating, general and administrative expenses -external (1,430 ) (681 ) (2,111 ) (510 ) (998 ) (450 ) (4,069 ) Income (loss) from operations - internal 3,210 1,160 4,370 169 (922 ) (480 ) 3,137 Eliminations (161 ) 840 679 (679 ) (30 ) 30 — Income (loss) from operations - external $ 3,049 $ 2,000 $ 5,049 $ (510 ) $ (952 ) $ (450 ) $ 3,137 Fee Timber Six Months Ended Pope ORM Timber Total Fee Timberland Real June 30, (in thousands) Resources Funds Timber Management Estate Other Consolidated 2015 Revenue - internal $ 13,707 $ 11,657 $ 25,364 $ 1,601 $ 15,661 $ — $ 42,626 Eliminations (146 ) — (146 ) (1,601 ) (67 ) — (1,814 ) Revenue - external 13,561 11,657 25,218 — 15,594 — 40,812 Cost of sales (5,908 ) (9,532 ) (15,440 ) — (7,872 ) — (23,312 ) Operating, general and administrative expenses - internal (2,301 ) (2,630 ) (4,931 ) (1,660 ) (2,024 ) (2,446 ) (11,061 ) Eliminations — 1,601 1,601 146 9 58 1,814 Operating, general and administrative expenses - external (2,301 ) (1,029 ) (3,330 ) (1,514 ) (2,015 ) (2,388 ) (9,247 ) Income (loss) from operations - internal 5,498 (505 ) 4,993 (59 ) 5,765 (2,446 ) 8,253 Eliminations (146 ) 1,601 1,455 (1,455 ) (58 ) 58 — Income (loss) from operations - external $ 5,352 $ 1,096 $ 6,448 $ (1,514 ) $ 5,707 $ (2,388 ) $ 8,253 2014 Revenue - internal $ 20,182 $ 19,737 $ 39,919 $ 1,715 $ 16,817 $ — $ 58,451 Eliminations (315 ) — (315 ) (1,715 ) (59 ) — (2,089 ) Revenue - external 19,867 19,737 39,604 — 16,758 — 56,362 Cost of sales (8,154 ) (13,285 ) (21,439 ) — (8,862 ) — (30,301 ) Operating, general and administrative expenses - internal (2,530 ) (3,080 ) (5,610 ) (1,435 ) (1,889 ) (1,831 ) (10,765 ) Eliminations — 1,715 1,715 315 — 59 2,089 Operating, general and administrative expenses - external (2,530 ) (1,365 ) (3,895 ) (1,120 ) (1,889 ) (1,772 ) (8,676 ) Income (loss) from operations - internal 9,498 3,372 12,870 280 6,066 (1,831 ) 17,385 Eliminations (315 ) 1,715 1,400 (1,400 ) (59 ) 59 — Income (loss) from operations - external $ 9,183 $ 5,087 $ 14,270 $ (1,120 ) $ 6,007 $ (1,772 ) $ 17,385 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Income (Loss) per Unit | The following table shows the calculation of basic and diluted income per unit: Quarter Ended Six Months Ended (in thousands, except per unit amounts) 2015 2014 2015 2014 Net income attributable to Pope Resources' unitholders $ 289 $ 1,846 $ 8,098 $ 14,087 Less: Net income attributable to unvested restricted unitholders (25 ) (30 ) (37 ) (175 ) Preferred share dividends - ORM Timber Funds (8 ) (8 ) (16 ) (16 ) Net income for calculation of EPS $ 256 $ 1,808 $ 8,045 $ 13,896 Basic and diluted weighted average units outstanding 4,298 4,391 4,296 4,389 Basic and diluted earnings per unit $ 0.06 $ 0.41 $ 1.87 $ 3.17 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity in Environmental | Activity in the environmental liability is as follows: Balance at the Beginning Additions to Expenditures for Balance at (in thousands) of the Period Accrual Remediation Period-end Year ended December 31, 2013 $ 13,942 $ — $ 701 $ 13,241 Year ended December 31, 2014 13,241 10,000 1,590 21,651 Quarter ended March 31, 2015 21,651 — 286 21,365 Quarter ended June 30, 2015 $ 21,365 $ — $ 286 $ 21,079 |
Significant Accounting Polici21
Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
New Accounting Pronouncement | |
Item Effected [Line Items] | |
Debt issuance costs | $ 242,000 |
Partners' Capital Notes Discl22
Partners' Capital Notes Disclosure (Detail) | Jun. 30, 2015Partnershares | Dec. 31, 2014shares |
Equity [Abstract] | ||
Number of general partner | Partner | 2 | |
Number of partnership units owned by two general partners | 60,000 | 60,000 |
Balance Sheet Of Partnership 23
Balance Sheet Of Partnership Co-Investments (Narrative) (Detail) - 6 months ended Jun. 30, 2015 | Total |
Fund I | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Operating term for Fund | 10 years |
Termination agreement date | 2017-08 |
Pope Resources and ORMLLC combined ownership percentage | 20.00% |
Fund II | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Operating term for Fund | 10 years |
Termination agreement date | 2021-03 |
Pope Resources and ORMLLC combined ownership percentage | 20.00% |
Fund III | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | |
Operating term for Fund | 10 years |
Termination agreement description | Fund III will terminate on the tenth anniversary of the completion of its investment period. Fund III’s investment period will end at the earlier of placement of all committed capital or July 31, 2016. |
Pope Resources and ORMLLC combined ownership percentage | 5.00% |
Balance Sheet Of Partnership 24
Balance Sheet Of Partnership Co-Investments (Partnership's Consolidated Balance Sheet included Assets and Liabilities of Funds) (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Assets: | ||
Cash | $ 6,591 | $ 9,523 |
Total current assets | 32,051 | 37,480 |
Timber, timberland and roads, net of accumulated depletion (2014 - $24,445; 2013 - $28,713) | 308,808 | 307,156 |
Other long-term assets | 527 | 441 |
Total assets | 341,386 | 345,077 |
Liabilities and equity: | ||
Current liabilities excluding long-term debt | 308 | 248 |
Long-term debt, net of current portion | 84,816 | 84,872 |
Total liabilities, partners' capital and noncontrolling interests | 341,386 | 345,077 |
ORM Timber Funds | ||
Assets: | ||
Cash | 6,591 | 9,523 |
Other current assets | 696 | 1,108 |
Total current assets | 7,287 | 10,631 |
Timber, timberland and roads, net of accumulated depletion (2014 - $24,445; 2013 - $28,713) | 226,863 | 230,123 |
Other long-term assets | 145 | 156 |
Total assets | 234,295 | 240,910 |
Liabilities and equity: | ||
Current liabilities excluding long-term debt | 2,161 | 1,891 |
Long-term debt, net of current portion | 57,380 | 57,380 |
Total liabilities | 59,541 | 59,271 |
Funds' equity | 174,754 | 181,639 |
Total liabilities, partners' capital and noncontrolling interests | $ 234,295 | $ 240,910 |
Balance Sheet Of Partnership 25
Balance Sheet Of Partnership Co-Investments (Partnership's Consolidated Balance Sheet included Assets and Liabilities of Funds - Non Printing) (Detail) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Condensed Financial Statements, Captions [Line Items] | ||
Timber, Timberland and roads, accumulated depletion | $ 98,227 | $ 93,359 |
ORM Timber Funds | ||
Condensed Financial Statements, Captions [Line Items] | ||
Timber, Timberland and roads, accumulated depletion | $ 30,676 | $ 26,738 |
Segment Reporting Disclosure (D
Segment Reporting Disclosure (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | $ 13,904 | $ 18,583 | $ 40,812 | $ 56,362 |
Cost of sales | (8,815) | (11,377) | (23,312) | (30,301) |
Operating, general and administrative expenses | (4,909) | (4,069) | (9,247) | (8,676) |
Income (loss) from operations | 180 | 3,137 | 8,253 | 17,385 |
Fee Timber | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 9,272 | 17,495 | 25,218 | 39,604 |
Cost of sales | (5,838) | (10,335) | (15,440) | (21,439) |
Operating, general and administrative expenses | (1,846) | (2,111) | (3,330) | (3,895) |
Income (loss) from operations | 1,588 | 5,049 | 6,448 | 14,270 |
Fee Timber | Pope Resources | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 4,771 | 8,723 | 13,561 | 19,867 |
Cost of sales | (2,301) | (4,244) | (5,908) | (8,154) |
Operating, general and administrative expenses | (1,206) | (1,430) | (2,301) | (2,530) |
Income (loss) from operations | 1,264 | 3,049 | 5,352 | 9,183 |
Fee Timber | ORM Timber Funds | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 4,501 | 8,772 | 11,657 | 19,737 |
Cost of sales | (3,537) | (6,091) | (9,532) | (13,285) |
Operating, general and administrative expenses | (640) | (681) | (1,029) | (1,365) |
Income (loss) from operations | 324 | 2,000 | 1,096 | 5,087 |
Timberland Management | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating, general and administrative expenses | (785) | (510) | (1,514) | (1,120) |
Income (loss) from operations | (785) | (510) | (1,514) | (1,120) |
Real Estate | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 4,632 | 1,088 | 15,594 | 16,758 |
Cost of sales | (2,977) | (1,042) | (7,872) | (8,862) |
Operating, general and administrative expenses | (1,080) | (998) | (2,015) | (1,889) |
Income (loss) from operations | 575 | (952) | 5,707 | 6,007 |
Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating, general and administrative expenses | (1,198) | (450) | (2,388) | (1,772) |
Income (loss) from operations | (1,198) | (450) | (2,388) | (1,772) |
Internal | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 14,768 | 19,614 | 42,626 | 58,451 |
Operating, general and administrative expenses | (5,773) | (5,100) | (11,061) | (10,765) |
Income (loss) from operations | 180 | 3,137 | 8,253 | 17,385 |
Internal | Fee Timber | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 9,336 | 17,656 | 25,364 | 39,919 |
Operating, general and administrative expenses | (2,613) | (2,951) | (4,931) | (5,610) |
Income (loss) from operations | 885 | 4,370 | 4,993 | 12,870 |
Internal | Fee Timber | Pope Resources | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 4,835 | 8,884 | 13,707 | 20,182 |
Operating, general and administrative expenses | (1,206) | (1,430) | (2,301) | (2,530) |
Income (loss) from operations | 1,328 | 3,210 | 5,498 | 9,498 |
Internal | Fee Timber | ORM Timber Funds | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 4,501 | 8,772 | 11,657 | 19,737 |
Operating, general and administrative expenses | (1,407) | (1,521) | (2,630) | (3,080) |
Income (loss) from operations | (443) | 1,160 | (505) | 3,372 |
Internal | Timberland Management | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 767 | 840 | 1,601 | 1,715 |
Operating, general and administrative expenses | (849) | (671) | (1,660) | (1,435) |
Income (loss) from operations | (82) | 169 | (59) | 280 |
Internal | Real Estate | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | 4,665 | 1,118 | 15,661 | 16,817 |
Operating, general and administrative expenses | (1,084) | (998) | (2,024) | (1,889) |
Income (loss) from operations | 604 | (922) | 5,765 | 6,066 |
Internal | Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating, general and administrative expenses | (1,227) | (480) | (2,446) | (1,831) |
Income (loss) from operations | (1,227) | (480) | (2,446) | (1,831) |
Eliminations | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | (864) | (1,031) | (1,814) | (2,089) |
Operating, general and administrative expenses | 864 | 1,031 | 1,814 | 2,089 |
Eliminations | Fee Timber | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | (64) | (161) | (146) | (315) |
Operating, general and administrative expenses | 767 | 840 | 1,601 | 1,715 |
Income (loss) from operations | 703 | 679 | 1,455 | 1,400 |
Eliminations | Fee Timber | Pope Resources | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | (64) | (161) | (146) | (315) |
Operating, general and administrative expenses | 0 | 0 | ||
Income (loss) from operations | (64) | (161) | (146) | (315) |
Eliminations | Fee Timber | ORM Timber Funds | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating, general and administrative expenses | 767 | 840 | 1,601 | 1,715 |
Income (loss) from operations | 767 | 840 | 1,601 | 1,715 |
Eliminations | Timberland Management | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | (767) | (840) | (1,601) | (1,715) |
Operating, general and administrative expenses | 64 | 161 | 146 | 315 |
Income (loss) from operations | (703) | (679) | (1,455) | (1,400) |
Eliminations | Real Estate | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Revenue | (33) | (30) | (67) | (59) |
Operating, general and administrative expenses | 4 | 0 | 9 | 0 |
Income (loss) from operations | (29) | (30) | (58) | (59) |
Eliminations | Other | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Operating, general and administrative expenses | 29 | 30 | 58 | 59 |
Income (loss) from operations | $ 29 | $ 30 | $ 58 | $ 59 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to Pope Resources' unitholders | $ 289 | $ 1,846 | $ 8,098 | $ 14,087 |
Net income attributable to unvested restricted unitholders | (25) | (30) | (37) | (175) |
Preferred share dividends - ORM Timber Funds | (8) | (8) | (16) | (16) |
Net income for calculation of EPS | $ 256 | $ 1,808 | $ 8,045 | $ 13,896 |
Basic and diluted weighted average units outstanding | 4,298 | 4,391 | 4,296 | 4,389 |
Basic and diluted earnings per unit attributable to unitholders (in dollars per unit) | $ 0.06 | $ 0.41 | $ 1.87 | $ 3.17 |
Stock Based Compensation (Detai
Stock Based Compensation (Detail) - Restricted Units - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity compensation units, granted in period | 7,550 | ||||
Vesting period of restricted stock unit award | 4 years | ||||
Long Term Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity compensation expense | $ 242 | $ 72 | $ 580 | $ 521 | |
Board of Directors Chairman | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Equity compensation units, granted in period | 4,500 | ||||
Board of Directors Chairman | Third anniversary | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% | ||||
Board of Directors Chairman | Fourth anniversary | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Award vesting percentage | 50.00% |
Cash Flow, Supplemental Discl29
Cash Flow, Supplemental Disclosures (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid, net of amounts capitalized | $ 1,400 | $ 1,000 |
Income tax paid | $ 205 | $ 33 |
Fair Value Disclosures (Detail)
Fair Value Disclosures (Detail) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fixed-Rate Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt outstanding carrying value | $ 90 | $ 90 |
Fair Value, Inputs, Level 2 | Fixed-Rate Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt outstanding fair value | 94.7 | $ 96 |
Prepaid Expenses and Other Current Assets | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other Assets, Fair Value Disclosure | $ 4.4 |
Commitments and Contingencies31
Commitments and Contingencies (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | |||||
Accrual for estimated environmental remediation costs | $ 21,079 | $ 21,365 | $ 21,651 | $ 13,241 | $ 13,942 |
Additions to accrual | 0 | $ 0 | $ 10,000 | $ 0 | |
Environmental liability, next 12 month | 12,500 | ||||
Environmental liability thereafter | $ 8,600 |
Commitments and Contingencies32
Commitments and Contingencies (Changes in Environmental Liability) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | ||||
Beginning balance | $ 21,365 | $ 21,651 | $ 13,241 | $ 13,942 |
Additions to accrual | 0 | 0 | 10,000 | 0 |
Expenditures for remediation | 286 | 286 | 1,590 | 701 |
Ending balance | $ 21,079 | $ 21,365 | $ 21,651 | $ 13,241 |
Subsequent Event (Detail)
Subsequent Event (Detail) $ in Millions | Aug. 06, 2015USD ($) |
Gig Harbor, Washington | Subsequent Event | |
Subsequent Event [Line Items] | |
Proceeds from sale of multi-family residential parcel | $ 4.2 |