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BUSINESS SEGMENTS (Tables)
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Reconciliation of Business Segment Information in Consolidated Statement of Operations

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

 

DOLLAR AMOUNTS IN MILLIONS

 

TIMBERLANDS

 

 

REAL ESTATE
& ENR

 

 

WOOD PRODUCTS

 

 

UNALLOCATED ITEMS AND INTERSEGMENT ELIMINATIONS

 

 

CONSOLIDATED

 

QUARTER ENDED SEPTEMBER 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to unaffiliated customers

 

$

386

 

 

$

103

 

 

$

1,228

 

 

$

—

 

 

$

1,717

 

Intersegment sales

 

 

150

 

 

 

—

 

 

 

—

 

 

 

(150

)

 

 

—

 

Total

 

 

536

 

 

 

103

 

 

 

1,228

 

 

 

(150

)

 

 

1,717

 

Costs of sales

 

 

429

 

 

 

28

 

 

 

1,218

 

 

 

(162

)

 

 

1,513

 

Gross margin

 

 

107

 

 

 

75

 

 

 

10

 

 

 

12

 

 

 

204

 

Selling expenses

 

 

—

 

 

 

—

 

 

 

23

 

 

 

—

 

 

 

23

 

General and administrative expenses

 

 

25

 

 

 

7

 

 

 

39

 

 

 

36

 

 

 

107

 

Other segment items(1)

 

 

2

 

 

 

(1

)

 

 

(33

)

 

 

(4

)

 

 

(36

)

Net contribution (charge) to earnings

 

$

80

 

 

$

69

 

 

$

(19

)

 

$

(20

)

 

$

110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUARTER ENDED SEPTEMBER 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to unaffiliated customers

 

$

357

 

 

$

89

 

 

$

1,235

 

 

$

—

 

 

$

1,681

 

Intersegment sales

 

 

136

 

 

 

—

 

 

 

—

 

 

 

(136

)

 

 

—

 

Total

 

 

493

 

 

 

89

 

 

 

1,235

 

 

 

(136

)

 

 

1,681

 

Costs of sales

 

 

410

 

 

 

31

 

 

 

1,132

 

 

 

(142

)

 

 

1,431

 

Gross margin

 

 

83

 

 

 

58

 

 

 

103

 

 

 

6

 

 

 

250

 

Selling expenses

 

 

1

 

 

 

—

 

 

 

21

 

 

 

—

 

 

 

22

 

General and administrative expenses

 

 

24

 

 

 

6

 

 

 

41

 

 

 

51

 

 

 

122

 

Other segment items(1)

 

 

1

 

 

 

1

 

 

 

14

 

 

 

8

 

 

 

24

 

Net contribution (charge) to earnings

 

$

57

 

 

$

51

 

 

$

27

 

 

$

(53

)

 

$

82

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YEAR-TO-DATE ENDED SEPTEMBER 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to unaffiliated customers

 

$

1,141

 

 

$

351

 

 

$

3,872

 

 

$

—

 

 

$

5,364

 

Intersegment sales

 

 

458

 

 

 

—

 

 

 

—

 

 

 

(458

)

 

 

—

 

Total

 

 

1,599

 

 

 

351

 

 

 

3,872

 

 

 

(458

)

 

 

5,364

 

Costs of sales

 

 

1,254

 

 

 

104

 

 

 

3,575

 

 

 

(433

)

 

 

4,500

 

Gross margin

 

 

345

 

 

 

247

 

 

 

297

 

 

 

(25

)

 

 

864

 

Selling expenses

 

 

1

 

 

 

—

 

 

 

67

 

 

 

1

 

 

 

69

 

General and administrative expenses

 

 

73

 

 

 

20

 

 

 

118

 

 

 

129

 

 

 

340

 

Other segment items(1)

 

 

1

 

 

 

(4

)

 

 

(21

)

 

 

39

 

 

 

15

 

Net contribution (charge) to earnings

 

$

270

 

 

$

231

 

 

$

133

 

 

$

(194

)

 

$

440

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YEAR-TO-DATE ENDED SEPTEMBER 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales to unaffiliated customers

 

$

1,153

 

 

$

305

 

 

$

3,958

 

 

$

—

 

 

$

5,416

 

Intersegment sales

 

 

416

 

 

 

—

 

 

 

—

 

 

 

(416

)

 

 

—

 

Total

 

 

1,569

 

 

 

305

 

 

 

3,958

 

 

 

(416

)

 

 

5,416

 

Costs of sales

 

 

1,275

 

 

 

118

 

 

 

3,424

 

 

 

(410

)

 

 

4,407

 

Gross margin

 

 

294

 

 

 

187

 

 

 

534

 

 

 

(6

)

 

 

1,009

 

Selling expenses

 

 

1

 

 

 

—

 

 

 

64

 

 

 

1

 

 

 

66

 

General and administrative expenses

 

 

74

 

 

 

20

 

 

 

118

 

 

 

146

 

 

 

358

 

Other segment items(1)

 

 

1

 

 

 

(3

)

 

 

1

 

 

 

30

 

 

 

29

 

Net contribution (charge) to earnings

 

$

218

 

 

$

170

 

 

$

351

 

 

$

(183

)

 

$

556

 
(1)
Other segment items for each reportable segment includes recurring and non-recurring income and expense items. For our Wood Products segment, this includes an impairment charge related to the indefinite curtailment of our New Bern lumber mill for the quarter and year-to-date period ended September 30, 2024, product remediation recoveries for the year-to-date period ended September 30, 2024, and a gain on the sale of our Princeton lumber mill for the quarter and year-to-date period ended September 30, 2025. For Unallocated Items, this includes non-operating pension and other post-employment benefit costs, interest income and other and insurance recoveries for all periods presented. Refer to Note 13: Other Operating (Income) Costs, Net for additional information.
Reconciliation of Net Contribution to Earnings to Net Earnings (Loss)

Reconciliation of Net Contribution to Earnings to Net Earnings

 

 

QUARTER ENDED

 

 

YEAR-TO-DATE ENDED

 

DOLLAR AMOUNTS IN MILLIONS

 

SEPTEMBER 2025

 

 

SEPTEMBER 2024

 

 

SEPTEMBER 2025

 

 

SEPTEMBER 2024

 

Net contribution to earnings

 

$

110

 

 

$

82

 

 

$

440

 

 

$

556

 

Interest expense, net of capitalized interest

 

 

(71

)

 

 

(69

)

 

 

(203

)

 

 

(203

)

Earnings before income taxes

 

 

39

 

 

 

13

 

 

 

237

 

 

 

353

 

Income taxes

 

 

41

 

 

 

15

 

 

 

13

 

 

 

(38

)

Net earnings

 

$

80

 

 

$

28

 

 

$

250

 

 

$

315

 
Additional Financial Information

Additional Financial Information

DOLLAR AMOUNTS IN MILLIONS

 

TIMBERLANDS

 

 

REAL ESTATE
& ENR

 

 

WOOD PRODUCTS

 

 

UNALLOCATED ITEMS AND INTERSEGMENT ELIMINATIONS

 

 

CONSOLIDATED

 

QUARTER ENDED SEPTEMBER 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

$

68

 

 

$

3

 

 

$

56

 

 

$

3

 

 

$

130

 

Capital expenditures

 

$

37

 

 

$

—

 

 

$

88

 

 

$

—

 

 

$

125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

QUARTER ENDED SEPTEMBER 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

$

65

 

 

$

3

 

 

$

54

 

 

$

3

 

 

$

125

 

Capital expenditures

 

$

22

 

 

$

—

 

 

$

72

 

 

$

3

 

 

$

97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YEAR-TO-DATE ENDED SEPTEMBER 2025

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

$

197

 

 

$

9

 

 

$

166

 

 

$

8

 

 

$

380

 

Capital expenditures

 

$

82

 

 

$

—

 

 

$

243

 

 

$

—

 

 

$

325

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YEAR-TO-DATE ENDED SEPTEMBER 2024

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

$

196

 

 

$

10

 

 

$

164

 

 

$

6

 

 

$

376

 

Capital expenditures

 

$

74

 

 

$

—

 

 

$

177

 

 

$

16

 

 

$

267

 
Total Assets

Total Assets

DOLLAR AMOUNTS IN MILLIONS

 

SEPTEMBER 30,
2025

 

 

DECEMBER 31,
2024

 

Timberlands and Real Estate & ENR(1)

 

$

12,857

 

 

$

12,545

 

Wood Products

 

 

3,200

 

 

 

3,116

 

Unallocated items

 

 

611

 

 

 

875

 

Consolidated

 

$

16,668

 

 

$

16,536

 
(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.