Items Included in Our Charges for Integration and Restructuring, Closures, and Asset Impairments



DOLLAR AMOUNTS IN MILLIONS
	2016		2015		2014
Integration and restructuring charges related to our merger with Plum Creek⁽¹⁾:
Termination benefits	$	54	$	—	$	—
Acceleration of share-based compensation related to qualifying terminations (Note 16)	21		—		—
Acceleration of pension benefits related to qualifying terminations (Note 9)	5		—		—
Professional services	52		14		—
Other integration and restructuring costs	14		—		—
Total integration and restructuring charges related to our merger with Plum Creek	146		14		—
Charges related to closures and other restructuring activities:
Termination benefits	4		4		27
Pension and postretirement charges	—		—		3
Other closures and restructuring costs	4		6		12
Total charges related to closures and other restructuring activities	8		10		42
Impairment of long-lived assets	16		15		2
Total charges for integration and restructuring, closures and asset impairments	$	170	$	39	$	44
(1) 2015 integration and restructuring charges related to our merger with Plum Creek were classified within "Other operating costs (income), net" in the Consolidated Statement of Operations. We reclassified these costs to "Charges for integration and restructuring, closures and asset impairments" to align with current period classification.

INTEGRATION, RESTRUCTURING AND CLOSURES

During 2016, we incurred and accrued for termination benefits (primarily severance), accelerated share-based payment costs, and accelerated pension benefits based upon actual and expected qualifying terminations of certain employees as a result of restructuring decisions made subsequent to the merger. We also incurred non-recurring professional services costs for investment banking, legal and consulting, and certain other fees directly attributable to our merger with Plum Creek.

During 2015, we incurred non-recurring professional services costs for banking, legal and consulting fees directly attributable to our merger with Plum Creek. We also incurred restructuring and closure charges related to the closure of four distribution centers for our Wood Products business.

During 2014, our restructuring and closure charges were primarily related to our selling, general and administrative cost reduction initiative to support achieving our competitive performance goals.

Other restructuring and closure costs include lease termination charges, dismantling and demolition of plant and equipment, gain or loss on disposition of assets, environmental cleanup costs and incremental costs to wind down operating facilities.

ACCRUED TERMINATION BENEFITS

Changes in accrued severance related to restructuring during 2016 were as follows:



DOLLAR AMOUNTS IN MILLIONS
Accrued severance as of December 31, 2015	$	5
Charges	58
Payments	(37		)
Accrued severance as of December 31, 2016	$	26

In addition to the amounts shown above, there were severance charges and payments of $8 million related to the Cellulose Fibers divestitures during 2016.

ASSET IMPAIRMENTS

The Impairment of Long-Lived Assets and Goodwill sections of Note 1: Summary of Significant Accounting Policies provide details about how we account for these impairments. Additional information can also be found in our Critical Accounting Policies.

Long-Lived Assets

Our long-lived asset impairments were primarily related to the following:

•

2016 — We reviewed all of our development projects during 2016. As a result, we ceased development and initiated plans to sell certain projects. We plan to continue to develop or hold for future development our other projects and did not identify any indicators of impairment for these projects. We analyzed each of the projects we ceased development and initiated plans to sell and determined which had a book value greater than fair value. We recognized a $15 million impairment charge in Real Estate & ENR which represents the fair value less direct selling costs of these projects. The fair values of the projects were determined using significant unobservable inputs (Level 3) based on broker opinion of value reports.

Our remaining projects did not have any indicators of impairment; however, we corroborated this evaluation with an assessment of the undiscounted cash flows for the legacy Weyerhaeuser projects or noted that projects acquired from Plum Creek were recorded at estimated fair value when acquired in 2016.


•	2015 — We recognized an impairment charge of $13 million related to a nonstrategic asset held in Unallocated Items. The fair value of the asset was determined using significant unobservable inputs (Level 3) based on a discounted cash flow model. The asset was subsequently sold for no gain during 2015.