BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2013

BUSINESS SEGMENTS

BUSINESS SEGMENTS

We are principally engaged in growing and harvesting timber; manufacturing, distributing and selling forest products; and developing real estate and building single-family homes. Our principal business segments are:

• Timberlands – which includes logs; timber; minerals, oil and gas; and international wood products;

• Wood Products – which includes softwood lumber, engineered lumber, structural panels and building materials distribution;

• Cellulose Fibers – which includes pulp, liquid packaging board and an equity interest in a newsprint joint venture; and

• Real Estate – which includes real estate development and single-family home building operations.

An analysis and reconciliation of our business segment information to the respective information in the Consolidated Financial Statements is as follows:

	QUARTER ENDED
DOLLAR AMOUNTS IN MILLIONS	MARCH 2013			MARCH 2012
Sales to unaffiliated customers:
Timberlands	$	293		$	250
Wood Products	988			634
Cellulose Fibers	474			473
Real Estate	196			137
	1,951			1,494
Intersegment sales:
Timberlands	224			190
Wood Products	18			20
	242			210
Total sales	2,193			1,704
Intersegment eliminations	(242		)	(210		)
Total	$	1,951		$	1,494
Net contribution to earnings:
Timberlands	$	104		$	70
Wood Products	178			(13		)
Cellulose Fibers	31			48
Real Estate	—			(8		)
	313			97
Unallocated Items(1)	(46		)	16
Net contribution to earnings	267			113
Interest expense, net of capitalized interest	(82		)	(87		)
Income before income taxes	185			26
Income taxes	(41		)	15
Net earnings attributable to Weyerhaeuser common shareholders	$	144		$	41

(1) Unallocated Items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as: share-based compensation; pension and postretirement costs; foreign exchange transaction gains and losses associated with financing; and the elimination of intersegment profit in inventory and the LIFO reserve.