BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

BUSINESS SEGMENTS

NOTE 2: BUSINESS SEGMENTS

We are principally engaged in growing and harvesting timber; maximizing the value of our acreage through the sale of higher and better use (HBU) properties; monetizing the value of surface and subsurface assets through leases and royalties; and manufacturing, distributing and selling products made from trees. Our business segments are organized based primarily on products and services which include:

●Timberlands – Logs, timber, recreational leases and other products;

●Real Estate, Energy and Natural Resources (Real Estate & ENR) – Real Estate (sales of timberlands) and ENR (rights to explore for and extract hard minerals, construction materials, natural gas production and wind and solar) and

●Wood Products – Structural lumber, oriented strand board, engineered wood products and building materials distribution.

A reconciliation of our business segment information to the respective information in the Consolidated Statement of Operations is as follows:

	QUARTER ENDED
DOLLAR AMOUNTS IN MILLIONS	MARCH 2024			MARCH 2023
Sales to unaffiliated customers:
Timberlands	$	387		$	462
Real Estate & ENR		107			101
Wood Products		1,302			1,318
		1,796			1,881
Intersegment sales:
Timberlands		134			142
Total sales		1,930			2,023
Intersegment eliminations		(134	)		(142	)
Total	$	1,796		$	1,881
Net contribution (charge) to earnings:
Timberlands	$	80		$	120
Real Estate & ENR		60			53
Wood Products		128			95
		268			268
Unallocated items(1)		(67	)		(29	)
Net contribution to earnings		201			239
Interest expense, net of capitalized interest		(67	)		(66	)
Earnings before income taxes		134			173
Income taxes		(20	)		(22	)
Net earnings	$	114		$	151

(1)Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other.