DISCONTINUED OPERATIONS

6 Months Ended

Jun. 30, 2014

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

On July 7, 2014, we completed the following set of transactions:

• a series of transfers and other transactions resulting in our homebuilding and real estate development business becoming wholly-owned by TRI Pointe Homes, Inc. (TRI Pointe); and

• the distribution of shares of Weyerhaeuser Real Estate Company (WRECO) to our shareholders in exchange for 59 million shares of our common stock.

Collectively, these transactions are referred to as the “Real Estate Divestiture”.

We also received $712 million of cash proceeds in connection with the Real Estate Divestiture and expect to record a net gain of approximately $1 billion in third quarter 2014.

Prior to the distribution of WRECO shares to our shareholders, WRECO was a wholly owned subsidiary. Concurrent with the distribution to shareholders, WRECO ceased being a subsidiary. Discontinued operations relates to WRECO and was previously reported under the Real Estate segment and Unallocated Items.

The following table summarizes the components of net sales and net earnings from discontinued operations.

	QUARTER ENDED						YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS	JUNE 2014			JUNE 2013			JUNE 2014			JUNE 2013
Net sales from discontinued operations	$	317		$	267		$	565		$	463
Income from operations	$	27		$	19		$	43		$	23
Income taxes	(5		)	(6		)	(11		)	(8		)
Net earnings from discontinued operations	$	22		$	13		$	32		$	15

During June 2014, our wholly owned subsidiary, WRECO, issued $450 million of unsecured and unsubordinated senior obligations bearing an interest rate of 4.375 percent due June 15, 2019 and $450 million of unsecured and unsubordinated senior obligations bearing an interest rate of 5.875 percent due June 15, 2024, which are included in "Noncurrent liabilities of discontinued operations" in our Consolidated Balance Sheet and were transferred along with other WRECO assets and liabilities as part of the Real Estate Divestiture. The net proceeds after deducting the discount were $887 million and are included in "Current assets of discontinued operations" in our Consolidated Balance Sheet.

The following table shows carrying values for assets and liabilities classified as discontinued operations as of June 30, 2014 and December 31, 2013.

DOLLAR AMOUNTS IN MILLIONS	JUNE 30, 2014		DECEMBER 31, 2013
Assets
Cash and cash equivalents	$	63	$	5
Restricted cash	887		—
Receivables, less discounts and allowances	19		51
Prepaid expenses	10		11
Deferred tax assets	9		21
Total current assets	988		88
Property and equipment, net	16		15
Real estate in process of development and for sale	974		851
Land being processed for development	609		596
Investments in and advances to equity affiliates	15		21
Deferred tax assets	120		115
Other assets	93		96
Total noncurrent assets	1,827		1,694
Total assets	$	2,815	$	1,782
Liabilities
Accounts payable	53		41
Accrued liabilities	84		113
Total current liabilities	137		154
Long-term debt	887		—
Long-term debt (nonrecourse to the company) held by variable interest entities	8		5
Other liabilities	31		27
Total noncurrent liabilities	926		32
Total liabilities	$	1,063	$	186
Noncontrolling interests	$	49	$	34