Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
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 | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 4,368,151 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current assets | ||
Partnership cash | $ 1,871 | $ 1,871 |
ORM Timber Funds cash | 2,489 | 1,066 |
Cash | 4,360 | 2,937 |
Accounts receivable, net | 3,229 | 4,381 |
Land and timber held for sale | 7,873 | 20,503 |
Prepaid expenses and other | 1,629 | 4,385 |
Total current assets | 17,091 | 32,206 |
Properties and equipment, at cost | ||
Timber and roads, net of accumulated depletion (2017 - $115,424; 2016 - $110,533) | 279,393 | 279,793 |
Timberland | 55,153 | 54,369 |
Land held for development | 24,674 | 24,390 |
Buildings and equipment, net of accumulated depreciation (2017 - $7,838; 2016 - $7,713) | 5,526 | 5,628 |
Total property and equipment, at cost | 364,746 | 364,180 |
Other assets | ||
Deferred tax and other assets | 2,290 | 2,664 |
Total assets | 384,127 | 399,050 |
Current liabilities | ||
Accounts payable | 1,731 | 2,620 |
Accrued liabilities | 3,332 | 3,843 |
Current portion of long-term debt | 5,120 | 5,119 |
Deferred revenue | 455 | 418 |
Current portion of environmental remediation liability | 5,520 | 8,650 |
Other current liabilities | 386 | 398 |
Total current liabilities | 16,544 | 21,048 |
Long-term debt, net of unamortized debt issuance costs and current portion | 128,268 | 125,291 |
Environmental remediation and other long-term liabilities | 4,038 | 4,247 |
Partners’ capital and noncontrolling interests | ||
General partners' capital (units issued and outstanding 2017 - 60; 2016 - 60) | 946 | 934 |
Limited partners' capital (units issued and outstanding 2017 - 4,267; 2016 - 4,255) | 59,010 | 58,199 |
Noncontrolling interests | 175,321 | 189,331 |
Total partners’ capital and noncontrolling interests | 235,277 | 248,464 |
Total liabilities, partners’ capital and noncontrolling interests | $ 384,127 | $ 399,050 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Timber and roads, accumulated depletion | $ 115,424 | $ 110,533 |
Buildings and equipment, accumulated depreciation | $ 7,838 | $ 7,713 |
General partners’ capital, units issued | 60,000 | 60,000 |
General partners’ capital, units outstanding | 60,000 | 60,000 |
Limited partners’ capital, units issued | 4,267,000 | 4,255,000 |
Limited partners’ capital, units outstanding | 4,267,000 | 4,255,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenue | $ 17,345 | $ 11,069 |
Cost of sales | (11,201) | (7,140) |
Operating expenses | (4,262) | (3,373) |
General and administrative expenses | (1,701) | (1,604) |
Gain on sale of timberland | 12,503 | 226 |
Income (loss) from operations | 12,684 | (822) |
Interest expense, net | (1,010) | (658) |
Income (loss) before income taxes | 11,674 | (1,480) |
Income tax expense | (56) | (50) |
Net income (loss) | 11,618 | (1,530) |
Net and comprehensive (income) loss attributable to noncontrolling interests - ORM Timber Funds | (8,248) | 496 |
Net and comprehensive income (loss) attributable to unitholders | 3,370 | (1,034) |
Allocable to general partners | 47 | (14) |
Allocable to limited partners | 3,323 | (1,020) |
Net and comprehensive income (loss) attributable to unitholders | $ 3,370 | $ (1,034) |
Basic and diluted earnings (loss) per unit attributable to unit holders (in dollars per unit) | $ 0.77 | $ (0.25) |
Basic and diluted weighted average units outstanding (units) | 4,325 | 4,311 |
Distributions per unit (in dollars per unit) | $ 0.7 | $ 0.7 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Partners' Capital Statement - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands | Total | Noncontrolling Interests | General Partners | Limited Partners |
Beginning balance at Dec. 31, 2016 | $ 248,464 | $ 189,331 | $ 934 | $ 58,199 |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||
Net income (loss) | 11,618 | 8,248 | 47 | 3,323 |
Cash distributions | (26,141) | (23,083) | (42) | (3,016) |
Capital call | 825 | 825 | ||
Equity-based compensation | 605 | 8 | 597 | |
Indirect repurchase of units for minimum tax withholding | (94) | (1) | (93) | |
Ending balance at Mar. 31, 2017 | $ 235,277 | $ 175,321 | $ 946 | $ 59,010 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) | $ 11,618 | $ (1,530) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ||
Depletion | 4,922 | 2,330 |
Equity-based compensation | 605 | 416 |
Depreciation and amortization | 110 | 184 |
Deferred taxes | 65 | 0 |
Cost of land sold | 230 | 904 |
Gain on sale of timberland | (12,503) | (226) |
Gain on disposal of property and equipment | (1) | (13) |
Cash flows from changes in operating accounts | ||
Accounts receivable, net | 1,151 | 333 |
Prepaid expenses and other assets | 3,066 | (33) |
Real estate project expenditures | (1,825) | (569) |
Accounts payable and accrued liabilities | (1,401) | (654) |
Deferred revenue | 37 | 175 |
Environmental remediation | (3,329) | (3,222) |
Other current and long-term liabilities | (21) | (55) |
Net cash provided by (used in) operating activities | 2,724 | (1,960) |
Cash flows from investing activities | ||
Reforestation and roads | (335) | (263) |
Capital expenditures | (23) | (122) |
Proceeds from sale of property and equipment | 11 | 13 |
Acquisition of timberland - Partnership | (4,951) | 0 |
Proceeds from sale of timberland - Funds | 26,444 | 445 |
Net cash provided by investing activities | 21,146 | 73 |
Cash flows from financing activities | ||
Line of credit borrowings | 10,000 | 1,500 |
Line of credit repayments | (7,000) | 0 |
Repayment of long-term debt | (30) | (28) |
Debt issuance costs | (7) | 0 |
Payroll taxes paid on unit net settlements | (94) | (152) |
Cash distributions to unitholders | (3,058) | (3,043) |
Cash distributions - ORM Timber Funds, net of distributions to Partnership | (23,083) | (2,155) |
Capital call - ORM Timber Funds, net of Partnership contribution | 825 | 0 |
Net cash used in financing activities | (22,447) | (3,878) |
Net increase (decrease) in cash | 1,423 | (5,765) |
Cash at beginning of period | 2,937 | 9,706 |
Cash at end of period | $ 4,360 | $ 3,941 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements Disclosure | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure | The condensed consolidated balance sheets as of March 31, 2017 and December 31, 2016 and the related condensed consolidated statements of comprehensive income, partners’ capital and cash flows for the three-month periods ended March 31, 2017 and 2016 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, 2016 is derived from the Partnership’s audited consolidated financial statements and notes thereto for the year ended December 31, 2016 , 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, 2017 . |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | The financial statements in the Partnership’s 2016 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 Financial Accounting Standards Board (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 Partnership will adopt this standard using the cumulative effect transition method applied to uncompleted contracts as of the date of adoption. Under this method, the cumulative effect of initially applying the standard is recorded as an adjustment to partners’ capital. This new standard may result in accelerating the recognition of revenue in the Real Estate segment for performance obligations that are satisfied over time, which generally consist of construction and landscaping activity in common areas completed after transaction closing. Management does not expect, however, that the impact will be material to the Partnership’s financial reporting. In February 2016, the FASB issued ASU 2016-02, Leases , which requires substantially all leases to be reflected on the balance sheet as a liability and a right-of-use asset. The ASU will replace existing lease accounting guidance in U.S. GAAP when it becomes effective on January 1, 2019 and the Partnership will adopt it at that time. The standard will be applied on a modified retrospective basis in which certain optional practical expedients may be applied. Due to the Partnership’s limited leasing activity, management does not expect the effect of this standard to be material to its ongoing financial reporting. Effective January 1, 2017, the Partnership adopted ASU 2016-09, which simplifies several aspects of accounting for share-based payment transactions, including income tax consequences, award classification, cash flows reporting, and forfeiture rate application. The adoption of this standard did not have a material impact on the Partnership’s consolidated financial statements. |
Like-Kind Exchanges (Notes)
Like-Kind Exchanges (Notes) | 3 Months Ended |
Mar. 31, 2017 | |
Like-Kind Exchanges [Abstract] | |
Like-Kind Exchanges | Prepaid expenses and other current assets included $ 850,000 held by Internal Revenue Code Section 1031 like-kind exchange intermediaries at March 31, 2017 and December 31, 2016 . Deferred tax and other assets included $1.5 million and $ 1.9 million held by like-kind exchange intermediaries at March 31, 2017 and December 31, 2016 , respectively. |
Partners' Capital Notes Disclos
Partners' Capital Notes Disclosure | 3 Months Ended |
Mar. 31, 2017 | |
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 among the general and limited partners is pro rata across all units outstanding. |
Balance Sheet Of Partnership Co
Balance Sheet Of Partnership Co-Investments | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Of Partnership Co-Investments | ORM Timber Fund II, Inc. (Fund II), ORM Timber Fund III (REIT) Inc. (Fund III) and ORM Timber Fund IV LLC (Fund IV), collectively “the Funds”, were formed by Olympic Resource Management LLC (ORMLLC), a wholly owned subsidiary of the Partnership, 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 is organized to operate for a specific term from the end of its respective investment period; ten years for each of Fund II and Fund III and fifteen years for Fund IV. Fund II and Fund III are scheduled to terminate in March 2021 and December 2025 , respectively. Fund IV will terminate on the fifteenth anniversary of its investment period. Fund IV’s investment period will end on the earlier of placement of all committed capital or December 31, 2019, subject to certain extension provisions. Pope Resources and ORMLLC together own 20% of Fund II, 5% of Fund III and 15% of Fund IV. The Funds are considered variable interest entities because their organizational and governance structures are the functional equivalent of a limited partnership. As the managing member of the Funds, the Partnership is the primary beneficiary of each of the Funds as it has the authority to direct the activities that most significantly impact their economic performance, as well as the right to receive benefits and obligation to absorb losses that could potentially be significant to the Funds. Accordingly, the Funds are consolidated into the Partnership’s financial statements. Additionally, the obligations of each of the Funds do not have any recourse to the Partnership. In January 2017, Fund II closed on the sale of one of its tree farms, located on the Oregon coast, for $26.5 million . The carrying value of this tree farm, consisting of $11.1 million for timber and roads and $2.8 million for land, is reflected in land and timber held for sale on the consolidated balance sheets as of December 31, 2016. The Partnership’s share of the pretax profit or loss generated by this tree farm was a gain of $2.5 million and a loss of $3,000 for the quarters ended March 31, 2017 and 2016 , respectively. The Partnership’s condensed consolidated balance sheet included assets and liabilities of the Funds as of March 31, 2017 and December 31, 2016 , which were as follows: (in thousands) March 31, 2017 December 31, 2016 Assets: Cash $ 2,489 $ 1,066 Land and timber held for sale — 13,941 Other current assets 838 2,195 Total current assets 3,327 17,202 Properties and equipment, net of accumulated depletion and depreciation (2017 - $42,207; 2016 - $38,306) 245,454 249,197 Total assets $ 248,781 $ 266,399 Liabilities and equity: Current liabilities $ 1,941 $ 2,256 Long-term debt, net of unamortized debt issuance costs 57,274 57,268 Total liabilities 59,215 59,524 Funds’ equity 189,566 206,875 Total liabilities and equity $ 248,781 $ 266,399 |
Segment Reporting Disclosure
Segment Reporting Disclosure | 3 Months Ended |
Mar. 31, 2017 | |
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 quarters ended March 31, 2017 and 2016 : Fee Timber Three Months Ended March 31, (in thousands) Pope Resources ORM Timber Funds Total Fee Timber Timberland Investment Management Real Estate Other Consolidated 2017 Revenue - internal $ 9,191 $ 7,706 $ 16,897 $ 848 $ 667 $ — $ 18,412 Eliminations (85 ) — (85 ) (848 ) (134 ) — (1,067 ) Revenue - external 9,106 7,706 16,812 — 533 — 17,345 Cost of sales (3,542 ) (7,093 ) (10,635 ) — (566 ) — (11,201 ) Operating, general and administrative expenses - internal (1,244 ) (1,773 ) (3,017 ) (1,073 ) (1,205 ) (1,735 ) (7,030 ) Eliminations 57 848 905 107 21 34 1,067 Operating, general and administrative expenses - external (1,187 ) (925 ) (2,112 ) (966 ) (1,184 ) (1,701 ) (5,963 ) Gain on sale of timberland — 12,503 12,503 — — — 12,503 Income (loss) from operations - internal 4,405 11,343 15,748 (225 ) (1,104 ) (1,735 ) 12,684 Eliminations (28 ) 848 820 (741 ) (113 ) 34 — Income (loss) from operations - external $ 4,377 $ 12,191 $ 16,568 $ (966 ) $ (1,217 ) $ (1,701 ) $ 12,684 2016 Revenue - internal $ 4,438 $ 5,362 $ 9,800 $ 823 $ 1,384 $ — $ 12,007 Eliminations (48 ) — (48 ) (815 ) (75 ) — (938 ) Revenue - external 4,390 5,362 9,752 8 1,309 — 11,069 Cost of sales (1,608 ) (4,285 ) (5,893 ) — (1,247 ) — (7,140 ) Operating, general and administrative expenses - internal (1,200 ) (1,243 ) (2,443 ) (741 ) (1,108 ) (1,623 ) (5,915 ) Eliminations 27 815 842 67 10 19 938 Operating, general and administrative expenses -external (1,173 ) (428 ) (1,601 ) (674 ) (1,098 ) (1,604 ) (4,977 ) Gain on sale of timberland — 226 226 — — — 226 Income (loss) from operations - internal 1,630 60 1,690 82 (971 ) (1,623 ) (822 ) Eliminations (21 ) 815 794 (748 ) (65 ) 19 — Income (loss) from operations - external $ 1,609 $ 875 $ 2,484 $ (666 ) $ (1,036 ) $ (1,604 ) $ (822 ) |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic and diluted earnings per unit are calculated by dividing net and comprehensive income (loss) 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 earnings per unit: Quarter Ended (in thousands, except per unit amounts) 2017 2016 Net and comprehensive income (loss) attributable to Pope Resources’ unitholders $ 3,370 $ (1,034 ) Less: Net and comprehensive income attributable to unvested restricted unitholders (23 ) (25 ) Preferred share dividends - ORM Timber Funds (8 ) (8 ) Net and comprehensive income (loss) for calculation of earnings per unit $ 3,339 $ (1,067 ) Basic and diluted weighted average units outstanding 4,325 4,311 Basic and diluted earnings (loss) per unit $ 0.77 $ (0.25 ) |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | In the first quarter of 2017 , the Partnership issued 14,860 restricted units pursuant to the management incentive compensation program and 3,820 restricted units to members of the Board of Directors. These restricted units vest ratably over four years with the grant date fair value equal to the market price on the date of grant. During the three months ended March 31, 2017 , 556 units were granted with no restrictions to certain board members who elected to receive their quarterly board compensation in the form of units rather than cash. Units granted to directors are included in the calculation of total equity compensation expense which is recognized over the vesting period, for restricted units, or immediately for unrestricted units. Grants to retirement-eligible individuals on the date of grant are expensed immediately. The Partnership recognized $605,000 and $416,000 of equity compensation expense in the first quarter of 2017 and 2016 , respectively, related to these compensation programs. |
Cash Flow, Supplemental Disclos
Cash Flow, Supplemental Disclosures | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures | Supplemental disclosure of cash flow information: interest paid, net of amounts capitalized, totaled $570,000 and $397,000 for the first quarter of 2017 and 2016 , respectively. The Partnership paid no income taxes during the first quarter of 2017 and paid income taxes of $50,000 in the first quarter of 2016 . |
Timberland Acquisition
Timberland Acquisition | 3 Months Ended |
Mar. 31, 2017 | |
Timberland Acquisition [Abstract] | |
Timberland Acquisition | During the first quarter of 2017, the Partnership closed on acquisitions of timberland in western Washington totaling 1,648 acres for $5.0 million . The aggregate purchase price was allocated $783,000 to land and $4.2 million to timber and roads. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | In March 2017, the Partnership amended its $21.0 million credit facility with Northwest Farm Credit Services to extend the drawdown period from March 31, 2017 to July 1, 2017. The Partnership had $6.0 million outstanding under this facility at March 31, 2017 and December 31, 2016 . |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | The Partnership’s financial instruments include cash and accounts receivable, for which the carrying amount of each represents fair value based on current market interest rates or their short-term nature. The Partnership’s and the Funds’ fixed-rate debt collectively have a carrying value of $106.8 million as of March 31, 2017 and December 31, 2016 . 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 $110.5 million and $111.0 million as of March 31, 2017 and December 31, 2016 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | The Partnership had an accrual for estimated environmental remediation costs of $9.4 million and $12.8 million as of March 31, 2017 and December 31, 2016 , 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, Washington. In December of 2013, a consent decree and Clean-up Action Plan (CAP) related to Port Gamble were finalized with the Washington State Department of Ecology (DOE) and filed with Kitsap County Superior Court. In the third quarter of 2015, the Partnership selected a contractor to complete the remediation work. Remediation activity began in late September of 2015 and the required in-water portion of the cleanup was completed in January 2017 and will be followed by cleanup activity on the millsite and by a monitoring period. Management’s cost estimates for the remainder of the project are based on amounts included in the construction contract and estimates for project management and other professional fees. The environmental liability at March 31, 2017 is comprised of $5.5 million that management expects to expend in the next 12 months and $3.9 million thereafter. Activity in the environmental liability is as follows: (in thousands) Balance at Beginning of the Period Additions to Accrual Expenditures for Remediation Balance at Period-end Year ended December 31, 2015 $ 21,651 $ — $ 4,890 $ 16,761 Year ended December 31, 2016 16,761 7,700 11,691 12,770 Quarter ended March 31, 2017 12,770 — 3,329 9,441 |
Balance Sheet Of Partnership 20
Balance Sheet Of Partnership Co-Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and December 31, 2016 , which were as follows: (in thousands) March 31, 2017 December 31, 2016 Assets: Cash $ 2,489 $ 1,066 Land and timber held for sale — 13,941 Other current assets 838 2,195 Total current assets 3,327 17,202 Properties and equipment, net of accumulated depletion and depreciation (2017 - $42,207; 2016 - $38,306) 245,454 249,197 Total assets $ 248,781 $ 266,399 Liabilities and equity: Current liabilities $ 1,941 $ 2,256 Long-term debt, net of unamortized debt issuance costs 57,274 57,268 Total liabilities 59,215 59,524 Funds’ equity 189,566 206,875 Total liabilities and equity $ 248,781 $ 266,399 |
Segment Reporting Disclosure (T
Segment Reporting Disclosure (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 quarters ended March 31, 2017 and 2016 : Fee Timber Three Months Ended March 31, (in thousands) Pope Resources ORM Timber Funds Total Fee Timber Timberland Investment Management Real Estate Other Consolidated 2017 Revenue - internal $ 9,191 $ 7,706 $ 16,897 $ 848 $ 667 $ — $ 18,412 Eliminations (85 ) — (85 ) (848 ) (134 ) — (1,067 ) Revenue - external 9,106 7,706 16,812 — 533 — 17,345 Cost of sales (3,542 ) (7,093 ) (10,635 ) — (566 ) — (11,201 ) Operating, general and administrative expenses - internal (1,244 ) (1,773 ) (3,017 ) (1,073 ) (1,205 ) (1,735 ) (7,030 ) Eliminations 57 848 905 107 21 34 1,067 Operating, general and administrative expenses - external (1,187 ) (925 ) (2,112 ) (966 ) (1,184 ) (1,701 ) (5,963 ) Gain on sale of timberland — 12,503 12,503 — — — 12,503 Income (loss) from operations - internal 4,405 11,343 15,748 (225 ) (1,104 ) (1,735 ) 12,684 Eliminations (28 ) 848 820 (741 ) (113 ) 34 — Income (loss) from operations - external $ 4,377 $ 12,191 $ 16,568 $ (966 ) $ (1,217 ) $ (1,701 ) $ 12,684 2016 Revenue - internal $ 4,438 $ 5,362 $ 9,800 $ 823 $ 1,384 $ — $ 12,007 Eliminations (48 ) — (48 ) (815 ) (75 ) — (938 ) Revenue - external 4,390 5,362 9,752 8 1,309 — 11,069 Cost of sales (1,608 ) (4,285 ) (5,893 ) — (1,247 ) — (7,140 ) Operating, general and administrative expenses - internal (1,200 ) (1,243 ) (2,443 ) (741 ) (1,108 ) (1,623 ) (5,915 ) Eliminations 27 815 842 67 10 19 938 Operating, general and administrative expenses -external (1,173 ) (428 ) (1,601 ) (674 ) (1,098 ) (1,604 ) (4,977 ) Gain on sale of timberland — 226 226 — — — 226 Income (loss) from operations - internal 1,630 60 1,690 82 (971 ) (1,623 ) (822 ) Eliminations (21 ) 815 794 (748 ) (65 ) 19 — Income (loss) from operations - external $ 1,609 $ 875 $ 2,484 $ (666 ) $ (1,036 ) $ (1,604 ) $ (822 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Income (Loss) per Unit | The following table shows the calculation of basic and diluted earnings per unit: Quarter Ended (in thousands, except per unit amounts) 2017 2016 Net and comprehensive income (loss) attributable to Pope Resources’ unitholders $ 3,370 $ (1,034 ) Less: Net and comprehensive income attributable to unvested restricted unitholders (23 ) (25 ) Preferred share dividends - ORM Timber Funds (8 ) (8 ) Net and comprehensive income (loss) for calculation of earnings per unit $ 3,339 $ (1,067 ) Basic and diluted weighted average units outstanding 4,325 4,311 Basic and diluted earnings (loss) per unit $ 0.77 $ (0.25 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Activity in Environmental | Activity in the environmental liability is as follows: (in thousands) Balance at Beginning of the Period Additions to Accrual Expenditures for Remediation Balance at Period-end Year ended December 31, 2015 $ 21,651 $ — $ 4,890 $ 16,761 Year ended December 31, 2016 16,761 7,700 11,691 12,770 Quarter ended March 31, 2017 12,770 — 3,329 9,441 |
Like-Kind Exchanges (Details)
Like-Kind Exchanges (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investment Holdings [Line Items] | ||
Prepaid expenses and other | $ 1,629 | $ 4,385 |
Deferred tax and other assets | 2,290 | 2,664 |
Like-Kind Intermediaries | ||
Investment Holdings [Line Items] | ||
Prepaid expenses and other | 850 | |
Deferred tax and other assets | $ 1,500 | $ 1,900 |
Partners' Capital Notes Discl25
Partners' Capital Notes Disclosure (Detail) | Mar. 31, 2017Partnershares | Dec. 31, 2016shares |
Equity [Abstract] | ||
Number of general partners | Partner | 2 | |
Number of partnership units owned by two general partners | shares | 60,000 | 60,000 |
Balance Sheet Of Partnership 26
Balance Sheet Of Partnership Co-Investments (Narrative) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Jan. 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Land and timber held for sale | $ 7,873 | $ 20,503 | ||
Partnership's share of income from variable interest entities | $ 11,674 | $ (1,480) | ||
Fund II | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Operating term for Fund | 10 years | |||
Pope Resources and ORMLLC combined ownership percentage | 20.00% | |||
Proceeds from sale of tree farms | $ 26,500 | |||
Fund II | Timber Properties | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Land and timber held for sale | 11,100 | |||
Fund II | Productive Land | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Land and timber held for sale | $ 2,800 | |||
Partnership's share of income from variable interest entities | $ 2,500 | $ (3) | ||
Fund III | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Operating term for Fund | 10 years | |||
Pope Resources and ORMLLC combined ownership percentage | 5.00% | |||
Fund IV | ||||
Subsidiary of Limited Liability Company or Limited Partnership [Line Items] | ||||
Operating term for Fund | 15 years | |||
Pope Resources and ORMLLC combined ownership percentage | 15.00% |
Balance Sheet Of Partnership 27
Balance Sheet Of Partnership Co-Investments (Partnership's Consolidated Balance Sheet included Assets and Liabilities of Funds) (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Assets: | ||
Cash | $ 2,489 | $ 1,066 |
Land and timber held for sale | 7,873 | 20,503 |
Total current assets | 17,091 | 32,206 |
Properties and equipment, net of accumulated depletion and depreciation (2017 - $42,207; 2016 - $38,306) | 364,746 | 364,180 |
Properties and equipment, accumulated depletion and depreciation | 115,424 | 110,533 |
Total assets | 384,127 | 399,050 |
Liabilities and equity: | ||
Current liabilities | 386 | 398 |
Long-term debt, net of unamortized debt issuance costs | 128,268 | 125,291 |
Total liabilities, partners’ capital and noncontrolling interests | 384,127 | 399,050 |
ORM Timber Funds | ||
Assets: | ||
Cash | 2,489 | 1,066 |
Land and timber held for sale | 0 | 13,941 |
Other current assets | 838 | 2,195 |
Total current assets | 3,327 | 17,202 |
Properties and equipment, net of accumulated depletion and depreciation (2017 - $42,207; 2016 - $38,306) | 245,454 | 249,197 |
Properties and equipment, accumulated depletion and depreciation | 42,207 | 38,306 |
Total assets | 248,781 | 266,399 |
Liabilities and equity: | ||
Current liabilities | 1,941 | 2,256 |
Long-term debt, net of unamortized debt issuance costs | 57,274 | 57,268 |
Total liabilities | 59,215 | 59,524 |
Funds’ equity | 189,566 | 206,875 |
Total liabilities, partners’ capital and noncontrolling interests | $ 248,781 | $ 266,399 |
Segment Reporting Disclosure (D
Segment Reporting Disclosure (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | $ 17,345 | $ 11,069 |
Cost of sales | (11,201) | (7,140) |
Operating, general and administrative expenses | (5,963) | (4,977) |
Gain on sale of timberland | 12,503 | 226 |
Income (loss) from operations | 12,684 | (822) |
Fee Timber | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 16,812 | 9,752 |
Cost of sales | (10,635) | (5,893) |
Operating, general and administrative expenses | (2,112) | (1,601) |
Gain on sale of timberland | 12,503 | 226 |
Income (loss) from operations | 16,568 | 2,484 |
Fee Timber | Pope Resources | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 9,106 | 4,390 |
Cost of sales | (3,542) | (1,608) |
Operating, general and administrative expenses | (1,187) | (1,173) |
Income (loss) from operations | 4,377 | 1,609 |
Fee Timber | ORM Timber Funds | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 7,706 | 5,362 |
Cost of sales | (7,093) | (4,285) |
Operating, general and administrative expenses | (925) | (428) |
Gain on sale of timberland | 12,503 | 226 |
Income (loss) from operations | 12,191 | 875 |
Timberland Investment Management | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 8 | |
Operating, general and administrative expenses | (966) | (674) |
Income (loss) from operations | (966) | (666) |
Real Estate | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 533 | 1,309 |
Cost of sales | (566) | (1,247) |
Operating, general and administrative expenses | (1,184) | (1,098) |
Income (loss) from operations | (1,217) | (1,036) |
Other | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating, general and administrative expenses | (1,701) | (1,604) |
Income (loss) from operations | (1,701) | (1,604) |
Internal | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 18,412 | 12,007 |
Operating, general and administrative expenses | (7,030) | (5,915) |
Income (loss) from operations | 12,684 | (822) |
Internal | Fee Timber | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 16,897 | 9,800 |
Operating, general and administrative expenses | (3,017) | (2,443) |
Income (loss) from operations | 15,748 | 1,690 |
Internal | Fee Timber | Pope Resources | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 9,191 | 4,438 |
Operating, general and administrative expenses | (1,244) | (1,200) |
Income (loss) from operations | 4,405 | 1,630 |
Internal | Fee Timber | ORM Timber Funds | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 7,706 | 5,362 |
Operating, general and administrative expenses | (1,773) | (1,243) |
Income (loss) from operations | 11,343 | 60 |
Internal | Timberland Investment Management | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 848 | 823 |
Operating, general and administrative expenses | (1,073) | (741) |
Income (loss) from operations | (225) | 82 |
Internal | Real Estate | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 667 | 1,384 |
Operating, general and administrative expenses | (1,205) | (1,108) |
Income (loss) from operations | (1,104) | (971) |
Internal | Other | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating, general and administrative expenses | (1,735) | (1,623) |
Income (loss) from operations | (1,735) | (1,623) |
Eliminations | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | (1,067) | (938) |
Operating, general and administrative expenses | 1,067 | 938 |
Eliminations | Fee Timber | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | (85) | (48) |
Operating, general and administrative expenses | 905 | 842 |
Income (loss) from operations | 820 | 794 |
Eliminations | Fee Timber | Pope Resources | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | (85) | (48) |
Operating, general and administrative expenses | 57 | 27 |
Income (loss) from operations | (28) | (21) |
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 | 848 | 815 |
Income (loss) from operations | 848 | 815 |
Eliminations | Timberland Investment Management | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | (848) | (815) |
Operating, general and administrative expenses | 107 | 67 |
Income (loss) from operations | (741) | (748) |
Eliminations | Real Estate | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | (134) | (75) |
Operating, general and administrative expenses | 21 | 10 |
Income (loss) from operations | (113) | (65) |
Eliminations | Other | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Operating, general and administrative expenses | 34 | 19 |
Income (loss) from operations | $ 34 | $ 19 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net and comprehensive income (loss) attributable to Pope Resources’ unitholders | $ 3,370 | $ (1,034) |
Net and comprehensive income attributable to unvested restricted unitholders | (23) | (25) |
Preferred share dividends - ORM Timber Funds | (8) | (8) |
Net and comprehensive income (loss) for calculation of earnings per unit | $ 3,339 | $ (1,067) |
Basic and diluted weighted average units outstanding (units) | 4,325 | 4,311 |
Basic and diluted earnings (loss) per unit (in dollars per unit) | $ 0.77 | $ (0.25) |
Stock Based Compensation (Detai
Stock Based Compensation (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Board of Directors Chairman | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity compensation units, granted in period (in shares) | 556 | |
Restricted Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity compensation units, granted in period (in shares) | 14,860 | |
Vesting period of restricted stock unit award | 4 years | |
Restricted Units | Long Term Incentive Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity compensation expense | $ 605 | $ 416 |
Restricted Units | Board of Directors Chairman | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Equity compensation units, granted in period (in shares) | 3,820 |
Cash Flow, Supplemental Discl31
Cash Flow, Supplemental Disclosures (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest paid, net of amounts capitalized | $ 570,000 | $ 397,000 |
Income taxes paid | $ 0 | $ 50,000 |
Timberland Acquisition (Details
Timberland Acquisition (Details) - Western Washington $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($)a | |
Business Acquisition [Line Items] | |
Acres of land acquired | a | 1,648 |
Assets acquired | $ 5,000 |
Owned land | |
Business Acquisition [Line Items] | |
Assets acquired | 783 |
Timber deed | |
Business Acquisition [Line Items] | |
Assets acquired | $ 4,200 |
Debt (Details)
Debt (Details) - Northwest Farm Credit Services - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Line of credit outstanding | $ 6 | $ 6 |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | $ 21 |
Fair Value Disclosures (Detail)
Fair Value Disclosures (Detail) - Fixed-Rate Debt - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt outstanding carrying value | $ 106.8 | $ 106.8 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt outstanding fair value | $ 110.5 | $ 111 |
Commitments and Contingencies35
Commitments and Contingencies (Narrative) (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||||
Accrual for estimated environmental remediation costs | $ 9,441 | $ 12,770 | $ 16,761 | $ 21,651 |
Environmental liability, next 12 months | 5,500 | |||
Environmental liability thereafter | $ 3,900 |
Commitments and Contingencies36
Commitments and Contingencies (Changes in Environmental Liability) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Balance at Beginning of the Period | $ 12,770 | $ 16,761 | $ 21,651 |
Additions to Accrual | 0 | 7,700 | 0 |
Expenditures for Remediation | 3,329 | 11,691 | 4,890 |
Balance at Period-end | $ 9,441 | $ 12,770 | $ 16,761 |