BUSINESS SEGMENTS

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

BUSINESS SEGMENTS

NOTE 2: BUSINESS SEGMENTS

Our business segments and how we account for those segments are discussed in Note 1: Summary of Significant Accounting Policies. This note provides key financial data by business segment and information about our chief operating decision maker.

KEY FINANCIAL DATA BY BUSINESS SEGMENT

Sales, Significant Segment Expenses and Net Contribution (Charge) to Earnings

DOLLAR AMOUNTS IN MILLIONS
									UNALLOCATED
				REAL					ITEMS AND
				ESTATE			WOOD		INTERSEGMENT
	TIMBERLANDS			& ENR			PRODUCTS		ELIMINATIONS			CONSOLIDATED
2024
Net sales to unaffiliated customers	$	1,512		$	391		$	5,221	$	—		$	7,124
Intersegment sales		554			—			—		(554	)		—
Total		2,066			391			5,221		(554	)		7,124
Costs of sales		1,686			152			4,516		(543	)		5,811
Gross margin		380			239			705		(11	)		1,313
Selling expenses		1			—			85		2			88
General and administrative expenses		100			26			155		199			480
Other segment items(1)		(1	)		(3	)		8		45			49
Net contribution (charge) to earnings	$	280		$	216		$	457	$	(257	)	$	696
2023
Net sales to unaffiliated customers	$	1,654		$	363		$	5,657	$	—		$	7,674
Intersegment sales		572			—			—		(572	)		—
Total		2,226			363			5,657		(572	)		7,674
Costs of sales		1,746			126			4,699		(579	)		5,992
Gross margin		480			237			958		7			1,682
Selling expenses		1			—			84		2			87
General and administrative expenses		100			26			149		156			431
Other segment items(1)		(109	)		—			16		40			(53	)
Net contribution (charge) to earnings	$	488		$	211		$	709	$	(191	)	$	1,217
2022
Net sales to unaffiliated customers	$	1,858		$	368		$	7,958	$	—		$	10,184
Intersegment sales		561			—			—		(561	)		—
Total		2,419			368			7,958		(561	)		10,184
Costs of sales		1,796			113			5,166		(511	)		6,564
Gross margin		623			255			2,792		(50	)		3,620
Selling expenses		1			—			86		6			93
General and administrative expenses		98			27			142		131			398
Other segment items(1)		(4	)		10			28		244			278
Net contribution (charge) to earnings	$	528		$	218		$	2,536	$	(431	)	$	2,851

(1)Other segment items for each reportable segment includes recurring and non-recurring income and expense items. For our Timberlands segment, this includes gains on timberland sales and legal benefits. For our Real Estate & ENR segment, this includes restructuring, impairments and other charges. For our Wood Products segment, this includes product remediation recoveries, insurance recoveries and restructuring, impairments and other charges. For Unallocated Items, this includes environmental remediation charges, litigation expense, non-operating pension and other post-employment benefit costs and interest income and other.

The chief operating decision maker, our president and chief executive officer, evaluates segment performance and allocates capital based on the net contribution (charge) to earnings of the respective segments. This measure is used to monitor budget versus actual results and to benchmark performance against competitors, as well as to evaluate segment performance for capital allocation decisions. An analysis and reconciliation of our business segment information to the consolidated financial statements are included below:

Reconciliation of Net Contribution to Earnings to Net Earnings

DOLLAR AMOUNTS IN MILLIONS
	2024			2023			2022
Net contribution to earnings	$	696		$	1,217		$	2,851
Interest expense, net of capitalized interest		(269	)		(280	)		(270	)
Loss on debt extinguishment (Note 11)		—			—			(276	)
Income before income taxes		427			937			2,305
Income taxes		(31	)		(98	)		(425	)
Net earnings	$	396		$	839		$	1,880

Additional Financial Information

DOLLAR AMOUNTS IN MILLIONS
			REAL ESTATE		WOOD		UNALLOCATED
	TIMBERLANDS		& ENR		PRODUCTS		ITEMS		CONSOLIDATED
Depreciation, depletion and amortization
2024	$	260	$	13	$	219	$	10	$	502
2023	$	267	$	16	$	210	$	7	$	500
2022	$	256	$	17	$	201	$	6	$	480
Capital expenditures
2024	$	105	$	—	$	294	$	17	$	416
2023	$	111	$	—	$	323	$	13	$	447
2022	$	113	$	—	$	347	$	8	$	468

Total Assets

DOLLAR AMOUNTS IN MILLIONS
	TIMBERLANDS AND		WOOD		UNALLOCATED
	REAL ESTATE & ENR		PRODUCTS		ITEMS		CONSOLIDATED
Total assets(1)
2024	$	12,545	$	3,116	$	875	$	16,536
2023	$	12,596	$	3,073	$	1,314	$	16,983

(1)Assets attributable to the Real Estate & ENR segment are combined with total assets for the Timberlands segment as we do not produce separate balance sheets internally.