REVENUE RECOGNITION

12 Months Ended

Dec. 31, 2022

Revenue From Contract With Customer [Abstract]

REVENUE RECOGNITION

NOTE 3: REVENUE RECOGNITION

A majority of our revenue is derived from sales of delivered logs and manufactured wood products. We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers.

PERFORMANCE OBLIGATIONS

A performance obligation, as defined in ASC Topic 606, is a promise in a contract to transfer a distinct good or service to a customer. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue at the point in time, or over the period, in which the performance obligation is satisfied.

Performance obligations associated with delivered log sales are typically satisfied when the logs are delivered to our customers’ mills or delivered to an ocean vessel in the case of export sales. Performance obligations associated with the sale of wood products are typically satisfied when the products are shipped. We have elected, as an accounting policy, to treat shipping and handling that is performed after a customer obtains control of the product as an activity required to fulfill the promise to transfer the good; therefore we will not evaluate this requirement as a separate performance obligation.

Customers are generally invoiced shortly after logs are delivered or after wood products are shipped, with payment generally due within a month or less of the invoice date. ASC Topic 606 requires entities to consider significant financing components of contracts with customers, though allows for the use of a practical expedient when the period between satisfaction of a performance obligation and payment receipt is one year or less. Given the nature of our revenue transactions, we have elected to utilize this practical expedient.

Performance obligations associated with real estate sales are generally met when placed into escrow and all conditions of closing have been satisfied.

CONTRACT ESTIMATES

Substantially all of our performance obligations are satisfied as of a point in time. Therefore, there is little judgment in determining when control transfers for our business segments as described above.

The transaction price for log sales generally equals the amount billed to our customer for logs delivered during the accounting period. For the limited number of log sales subject to a long-term supply agreement, the transaction price is variable but is known at the time of billing. For wood products sales, the transaction price is generally the amount billed to the customer for the products shipped but may be reduced slightly for estimated cash discounts and rebates.

There are no significant contract estimates related to the real estate business.

CONTRACT BALANCES

In general, customers are billed and a receivable is recorded as we ship and/or deliver wood products and logs. We generally receive payment shortly after products have been received by our customers. Contract asset and liability balances are immaterial.

For real estate sales, the company receives the entire consideration in cash at closing.

MAJOR PRODUCTS

A Reconciliation of Revenue Recognized by our Major Products:

DOLLAR AMOUNTS IN MILLIONS
	2022		2021		2020
Net sales to unaffiliated customers:
Timberlands segment
Delivered logs:
West
Domestic sales	$	414	$	308	$	329
Export grade sales		590		561		391
Subtotal West		1,004		869		720
South		645		589		573
North		56		52		52
Subtotal delivered logs sales		1,705		1,510		1,345
Stumpage and pay-as-cut timber		46		31		19
Recreational and other lease revenue		68		65		63
Other(1)		39		30		39
Net sales attributable to Timberlands segment		1,858		1,636		1,466
Real Estate & ENR segment
Real estate		235		246		202
Energy and natural resources		133		98		74
Net sales attributable to Real Estate & ENR segment		368		344		276
Wood Products segment
Structural lumber		3,374		3,721		2,602
Oriented strand board		1,578		1,840		1,013
Engineered solid section		862		679		505
Engineered I-joists		573		447		316
Softwood plywood		193		210		171
Medium density fiberboard		192		186		171
Complementary building products		840		790		676
Other(2)		346		348		336
Net sales attributable to Wood Products segment		7,958		8,221		5,790
Total	$	10,184	$	10,201	$	7,532

(1)Other Timberlands sales includes sales of seeds and seedlings from our nursery operations as well as wood chips.

(2)Other Wood Products sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations.