Segment Information (Tables)

6 Months Ended

Jun. 30, 2011

PLUM CREEK TIMBER CO INC [Member]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The tables below present information about reported segments for the quarterly and six-month periods ended June 30 (in millions):

	Northern Resources		Southern Resources		Real Estate		Manufactured Products(A)		Other		Total(C)
Quarter Ended June 30, 2011
External Revenues	$	42	$	84	$	79	$	74	$	5	$	284
Intersegment Revenues	2		—		—		—		—		2
Depreciation, Depletion and Amortization	5		12		1		3		—		21
Basis of Real Estate Sold	—		—		24		—		—		24
Other Operating Gain	—		—		—		—		—		—
Operating Income	3		15		50		5		4		77
Quarter Ended June 30, 2010
External Revenues	$	44	$	89	$	43	$	78	$	4	$	258
Intersegment Revenues	2		—		—		—		—		2
Depreciation, Depletion and Amortization	7		12		1		3		—		23
Basis of Real Estate Sold	—		—		11		—		—		11
Other Operating Gain	1		—		—		2		—		3
Operating Income	3		24		26		10		4		67
	Northern Resources		Southern Resources		Real Estate		Manufactured Products(A)		Other(B)		Total(C)
Six Months Ended June 30, 2011
External Revenues	$	94	$	173	$	141	$	141	$	10	$	559
Intersegment Revenues	5		—		—		—		—		5
Depreciation, Depletion and Amortization	11		24		1		6		—		42
Basis of Real Estate Sold	—		—		43		—		—		43
Other Operating Gain	—		—		—		—		2		2
Operating Income	10		34		88		9		11		152
Six Months Ended June 30, 2010
External Revenues	$	97	$	187	$	142	$	138	$	11	$	575
Intersegment Revenues	8		—		—		—		—		8
Depreciation, Depletion and Amortization	14		25		1		6		—		46
Basis of Real Estate Sold	—		—		43		—		—		43
Other Operating Gain	1		—		—		2		5		8
Operating Income	7		54		88		14		15		178

(A) During the second quarter of 2010, the company sold certain lumber manufacturing assets for a gain of $2 million. For the quarter and six months ended June 30, 2010, the $2 million gain is reported as Other Operating Gain in our Manufactured Products Segment and is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

(B) During the first quarter of 2011, the company received a payment of $2 million for the settlement of a dispute that related to certain mineral rights. For the six months ended June 30, 2011, the $2 million payment is reported as Other Operating Gain in our Other Segment and is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

During the first quarter of 2010, the company agreed to terminate a land lease for consideration of $5 million from the lessor. The land lease had been accounted for as an operating lease. For the six months ended June 30, 2010, the $5 million consideration is reported as Other Operating Gain in our Other Segment since the consideration was primarily for the release of mineral rights. For the six months ended June 30, 2010, the $5 million is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

During the first quarter of 2010, the company received $21 million for the sale of an undivided 50% interest in natural gas rights on approximately 110,000 acres in West Virginia and to modify an existing natural gas lease on the same acres. The company allocated the proceeds based on relative fair value and determined that $11 million was for the sale of the natural gas rights and $10 million was for a lease bonus related to the modification of exploration rights under the existing lease. The fair value of the undivided 50% interest in natural gas rights was derived using an income approach based on discounted future cash flows. For the six months ended June 30, 2010, the sale is reported as Gain on Sale of Properties, net of tax in the Consolidated Statements of Income and was not included in the Other Segment’s operating income. The fair value of the modification to the exploration rights under the existing lease was based on market analyses and comparable leases. The $10 million, along with the remaining deferred revenue at the time of the modification of $12 million associated with the original granting of exploration rights in 2008, is being amortized into revenue of the Other Segment over the expected three-year term.

(C) Consolidated depreciation, depletion and amortization includes unallocated corporate depreciation of $1 million and $1 million for each of the quarterly periods ended June 30, 2011 and June 30, 2010; and $2 million and $2 million for each of the six-month periods ended June 30, 2011 and June 30, 2010.

Reconciliation of Total Segment Operating Income to Consolidated Income Before Income Taxes

A reconciliation of total segment operating income to income before income taxes is presented below for the quarterly and six-month periods ended June 30 (in millions):

	Quarter Ended June 30,
	2011			2010
Total Segment Operating Income	$	77		$	67
Corporate and Other Unallocated Expenses	(14		)	(12		)
Other Unallocated Operating Income (Expense), net	—			1
Operating Income	63			56
Equity Earnings from Timberland Venture	16			15
Total Interest Expense, net	(35		)	(34		)
Income before Income Taxes	$	44		$	37
	Six Months Ended June 30,
	2011			2010
Total Segment Operating Income	$	152		$	178
Corporate and Other Unallocated Expenses	(30		)	(28		)
Other Unallocated Operating Income (Expense), net	1			1
Operating Income	123			151
Equity Earnings from Timberland Venture	30			29
Total Interest Expense, net	(70		)	(68		)
Income before Income Taxes	$	83		$	112

PLUM CREEK TIMBERLANDS L P [Member]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

The tables below present information about reported segments for the quarterly and six-month periods ended June 30 (in millions):

	Northern Resources		Southern Resources		Real Estate		Manufactured Products(A)		Other		Total (C)
Quarter Ended June 30, 2011
External Revenues	$	42	$	84	$	79	$	74	$	5	$	284
Intersegment Revenues	2		—		—		—		—		2
Depreciation, Depletion and Amortization	5		12		1		3		—		21
Basis of Real Estate Sold	—		—		24		—		—		24
Other Operating Gain	—		—		—		—		—		—
Operating Income	3		15		50		5		4		77
Quarter Ended June 30, 2010
External Revenues	$	44	$	89	$	43	$	78	$	4	$	258
Intersegment Revenues	2		—		—		—		—		2
Depreciation, Depletion and Amortization	7		12		1		3		—		23
Basis of Real Estate Sold	—		—		11		—		—		11
Other Operating Gain	1		—		—		2		—		3
Operating Income	3		24		26		10		4		67
	Northern Resources		Southern Resources		Real Estate		Manufactured Products(A)		Other (B)		Total (C)
Six Months Ended June 30, 2011
External Revenues	$	94	$	173	$	141	$	141	$	10	$	559
Intersegment Revenues	5		—		—		—		—		5
Depreciation, Depletion and Amortization	11		24		1		6		—		42
Basis of Real Estate Sold	—		—		43		—		—		43
Other Operating Gain	—		—		—		—		2		2
Operating Income	10		34		88		9		11		152
Six Months Ended June 30, 2010
External Revenues	$	97	$	187	$	142	$	138	$	11	$	575
Intersegment Revenues	8		—		—		—		—		8
Depreciation, Depletion and Amortization	14		25		1		6		—		46
Basis of Real Estate Sold	—		—		43		—		—		43
Other Operating Gain	1		—		—		2		5		8
Operating Income	7		54		88		14		15		178

(A) During the second quarter of 2010, the Operating Partnership sold certain lumber manufacturing assets for a gain of $2 million. For the quarter and six months ended June 30, 2010, the $2 million gain is reported as Other Operating Gain in our Manufactured Products Segment and is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

(B) During the first quarter of 2011, the Operating Partnership received a payment of $2 million for the settlement of a dispute that related to certain mineral rights. For the six months ended June 30, 2011, the $2 million payment is reported as Other Operating Gain in our Other Segment and is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

During the first quarter of 2010, the Operating Partnership agreed to terminate a land lease for consideration of $5 million from the lessor. The land lease had been accounted for as an operating lease. For the six months ended June 30, 2010, the $5 million consideration is reported as Other Operating Gain in our Other Segment since the consideration was primarily for the release of mineral rights. For the six months ended June 30, 2010, the $5 million is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

During the first quarter of 2010, the Operating Partnership received $21 million for the sale of an undivided 50% interest in natural gas rights on approximately 110,000 acres in West Virginia and to modify an existing natural gas lease on the same acres. The Operating Partnership allocated the proceeds based on relative fair value and determined that $11 million was for the sale of the natural gas rights and $10 million was for a lease bonus related to the modification of exploration rights under the existing lease. The fair value of the undivided 50% interest in natural gas rights was derived using an income approach based on discounted future cash flows. For the six months ended June 30, 2010, the sale is reported as Gain on Sale of Properties, net of tax in the Consolidated Statements of Income and was not included in the Other Segment’s operating income. The fair value of the modification to the exploration rights under the existing lease was based on market analyses and comparable leases. The $10 million, along with the remaining deferred revenue at the time of the modification of $12 million associated with the original granting of exploration rights in 2008, is being amortized into revenue of the Other Segment over the expected three-year term.

(C) Consolidated depreciation, depletion and amortization includes unallocated corporate depreciation of $1 million and $1 million for each of the quarterly periods ended June 30, 2011 and June 30, 2010; and $2 million and $2 million for each of the six-month periods ended June 30, 2011 and June 30, 2010.

Reconciliation of Total Segment Operating Income to Consolidated Income Before Income Taxes

A reconciliation of total segment operating income to income before income taxes is presented below for the quarterly and six-month periods ended June 30 (in millions):

	Quarter Ended June 30,
	2011			2010
Total Segment Operating Income	$	77		$	67
Corporate and Other Unallocated Expenses	(14		)	(12		)
Other Unallocated Operating Income (Expense), net	—			1
Operating Income	63			56
Equity Earnings from Timberland Venture	16			15
Interest Expense, net	(20		)	(19		)
Income before Income Taxes	$	59		$	52
	Six Months Ended June 30,
	2011			2010
Total Segment Operating Income	$	152		$	178
Corporate and Other Unallocated Expenses	(30		)	(28		)
Other Unallocated Operating Income (Expense), net	1			1
Operating Income	123			151
Equity Earnings from Timberland Venture	30			29
Interest Expense, net	(41		)	(39		)
Income before Income Taxes	$	112		$	141