XML 43 R11.htm IDEA: XBRL DOCUMENT v3.19.3
BUSINESS SEGMENTS
 9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 2: BUSINESS SEGMENTS

We are principally engaged in growing and harvesting timber; manufacturing, distributing, and selling products made from trees; maximizing the value of every acre we own through the sale of higher and better use (HBU) properties; and monetizing reserves of minerals, oil, gas, and other natural resources on our timberlands. Our business segments are categorized based primarily on products and services which include:

●

Timberlands – logs, timber and leased recreational access;

●

Real Estate & ENR – sales of HBU properties, rights to explore for and extract hard minerals, construction materials, oil and gas production, wind and solar; and

●

Wood Products – softwood lumber, engineered wood products, structural panels, medium density fiberboard 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

 

 

YEAR-TO-DATE ENDED

 

DOLLAR AMOUNTS IN MILLIONS

 

SEPTEMBER 2019

 

 

SEPTEMBER 2018

 

 

SEPTEMBER 2019

 

 

SEPTEMBER 2018

 

Sales to unaffiliated customers:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands(1)

 

$

398

 

 

$

459

 

 

$

1,230

 

 

$

1,425

 

Real Estate & ENR

 

 

69

 

 

 

96

 

 

 

268

 

 

 

205

 

Wood Products(1)

 

 

1,204

 

 

 

1,355

 

 

 

3,508

 

 

 

4,210

 

 

 

 

1,671

 

 

 

1,910

 

 

 

5,006

 

 

 

5,840

 

Intersegment sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands(1)

 

 

125

 

 

 

128

 

 

 

381

 

 

 

409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

 

1,796

 

 

 

2,038

 

 

 

5,387

 

 

 

6,249

 

Intersegment eliminations(1)

 

 

(125

)

 

 

(128

)

 

 

(381

)

 

 

(409

)

Total

 

$

1,671

 

 

$

1,910

 

 

$

5,006

 

 

$

5,840

 

Net contribution to earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

72

 

 

$

126

 

 

$

294

 

 

$

476

 

Real Estate & ENR

 

 

32

 

 

 

36

 

 

 

122

 

 

 

83

 

Wood Products

 

 

143

 

 

 

213

 

 

 

293

 

 

 

812

 

 

 

 

247

 

 

 

375

 

 

 

709

 

 

 

1,371

 

Unallocated items(2)

 

 

(54

)

 

 

(42

)

 

 

(620

)

 

 

(172

)

Net contribution to earnings

 

 

193

 

 

 

333

 

 

 

89

 

 

 

1,199

 

Interest expense, net of capitalized interest

 

 

(91

)

 

 

(93

)

 

 

(289

)

 

 

(278

)

Earnings (loss) before income taxes

 

 

102

 

 

 

240

 

 

 

(200

)

 

 

921

 

Income taxes

 

 

(3

)

 

 

15

 

 

 

138

 

 

 

(80

)

Net earnings (loss)

 

$

99

 

 

$

255

 

 

$

(62

)

 

$

841

 

 

(1)

In January 2019, we changed the way we report our Canadian Forestlands operations, which are primarily operated to supply Weyerhaeuser’s Canadian Wood Products manufacturing facilities. As a result, we no longer report related intersegment sales in the Timberlands segment and we now record the minimal associated third-party log sales in the Wood Products segment. These collective transactions did not contribute any earnings to the Timberlands segment. We have conformed prior year presentations with the current year.

(2)

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 postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.