EX-99.2 3 wy2014q4ex-992.htm EXHIBIT 99.2 WY 2014 Q4 EX-99.2


Weyerhaeuser Company
 
 


 
 


 
 

Exhibit 99.2
 
Q4.2014 Analyst Package
 
 



 
 


 
 


 
Preliminary results, subject to audit
 
 


 
 







Consolidated Statement of Operations

 
 


 
 







in millions
Q1

Q2

Q3

Q4

Year-to-date
 
Mar 31, 2014

Jun 30, 2014

Sep 30, 2014

Dec 31, 2014

Dec 31, 2013

Dec 31, 2014

Dec 31, 2013
Net Sales
$
1,736


$
1,964


$
1,915


$
1,788


$
1,768


$
7,403


$
7,254

Cost of products sold
1,361


1,499


1,504


1,399


1,412


5,763


5,716

Gross margin
375


465


411


389


356


1,640


1,538

Selling expenses
28


27


28


29


29


112


125

General and administrative expenses
88


88


73


89


105


338


404

Research and development expenses
7


7


5


8


10


27


33

Charges for restructuring, closures and impairments
19


8


10


7


370


44


377

Other operating income, net
(75
)

(65
)

(23
)

(38
)

(3
)

(201
)

(35
)
Operating income
308


400


318


294


(155
)

1,320


634

Interest income and other
9


11


7


10


16


37


55

Interest expense, net of capitalized interest
(83
)

(83
)

(88
)

(90
)

(113
)

(344
)

(369
)
Earnings from continuing operations before income taxes
234


328


237


214


(252
)

1,013


320

Income taxes
(50
)

(59
)

(39
)

(37
)

270


(185
)

171

Earnings from continuing operations
184


269


198


177


18


828


491

Earnings from discontinued operations, net of income taxes
10


22


966


—


36


998


72

Net earnings
194


291


1,164


177


54


1,826


563

Dividends on preference shares
(11
)

(11
)

(11
)

(11
)

(11
)

(44
)

(23
)
Net earnings attributable to Weyerhaeuser common shareholders
$
183


$
280


$
1,153


$
166


$
43


$
1,782


$
540


Per Share Information


Q1

Q2

Q3

Q4

Year-to-date
 
Mar 31, 2014

Jun 30, 2014

Sep 30, 2014

Dec 31, 2014

Dec 31, 2013

Dec 31, 2014

Dec 31, 2013
Earnings per share attributable to Weyerhaeuser common shareholders, basic:














Continuing operations
$
0.29


$
0.44


$
0.35


$
0.32


$
0.01


$
1.41


$
0.82

Discontinued operations
0.02


0.04


1.82


—


0.06


1.79


0.13

Net earnings per share
$
0.31


$
0.48


$
2.17


$
0.32


$
0.07


$
3.20


$
0.95

Earnings per share attributable to Weyerhaeuser common shareholders, diluted:

 













Continuing operations
$
0.29


$
0.43


$
0.35


$
0.31


$
0.01


$
1.40


$
0.82

Discontinued operations
0.02


0.04


1.80


—


0.06


1.78


0.13

Net earnings per share
$
0.31


$
0.47


$
2.15


$
0.31


$
0.07


$
3.18


$
0.95

Dividends paid per common share
$
0.22


$
0.22


$
0.29


$
0.29


$
0.22


$
1.02


$
0.81

Weighted average shares outstanding (in thousands):













Basic
584,915


586,061


531,913


524,838


583,610


556,705


566,329

Diluted
589,312


589,766


536,012


529,411


588,616


560,899


571,239

Common shares outstanding at end of period (in thousands)
584,961


586,698


525,485


524,474


583,548


524,474


583,548






















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*





















in millions
Q1

Q2

Q3

Q4

Year-to-date
 
Mar 31, 2014

Jun 30, 2014

Sep 30, 2014

Dec 31, 2014

Dec 31, 2013

Dec 31, 2014

Dec 31, 2013
Net earnings
$
194


$
291


$
1,164


$
177


$
54


$
1,826


$
563

Earnings from discontinued operations, net of income taxes
(10
)

(22
)

(966
)

—


(36
)

(998
)

(72
)
Interest income and other
(9
)

(11
)

(7
)

(10
)

(16
)

(37
)

(55
)
Interest expense, net of capitalized interest
83


83


88


90


113


344


369

Income taxes
50


59


39


37


(270
)

185


(171
)
Operating income
308


400


318


294


(155
)

1,320


634

Depreciation, depletion and amortization
123


122


123


125


125


493


458

Non-operating pension and postretirement costs (credits)
(10
)

(11
)

(12
)

(12
)

9


(45
)

40

Special items
(49
)

(39
)

(15
)

(31
)

366


(134
)

366

Adjusted EBITDA*
$
372


$
472


$
414


$
376


$
345


$
1,634


$
1,498

* Non-GAAP measure - see page 8 for definition.

















Page 1 of 9


Weyerhaeuser Company
 
 
 
 



 
Q4.2014 Analyst Package
 
 
 
 





Preliminary results, subject to audit
 
 
 
 





Consolidated Balance Sheet










in millions
March 31,
2014

June 30,
2014

September 30,
2014

December 31,
2014

December 31,
2013
 


ASSETS









Current assets:









Cash and cash equivalents
$
777


$
845


$
1,620


$
1,580


$
830

Receivables, less allowances
543


590


583


525


518

Receivables for taxes
34


37


23


25


101

Inventories
626


596


578


595


542

Prepaid expenses
101


106


97


80


117

Deferred tax assets
186


128


111


228


130

Current assets of discontinued operations
48


988


—

 
—

 
88

Total current assets
2,315


3,290


3,012


3,033


2,326

Property and equipment, net
2,596


2,599


2,534


2,623


2,689

Construction in progress
140


157


215


131


112

Timber and timberlands at cost, less depletion charged to disposals
6,574


6,571


6,546


6,530


6,580

Investments in and advances to equity affiliates
189


188


186


188


190

Goodwill
40


40


40


40


42

Deferred tax assets
1


—


—


8


5

Other assets
354


419


292


289


324

Restricted financial investments held by variable interest entities
615


615


615


615


615

Noncurrent assets of discontinued operations
1,762


1,827


—

 
—

 
1,694

Total assets
$
14,586


$
15,706


$
13,440


$
13,457


$
14,577











LIABILITIES AND EQUITY









Current liabilities:









Notes payable
$
2


$
—


$
—


$
—


$
2

Accounts payable
365


335


351


331


343

Accrued liabilities
582


597


606


587


629

Current liabilities of discontinued operations
123


137


—

 
—

 
154

Total current liabilities
1,072


1,069


957


918


1,128

Long-term debt
4,891


4,891


4,891


4,891


4,891

Long-term debt (nonrecourse to the company) held by variable interest entities
511


511


511


511


511

Deferred income taxes
387


410


338


206


285

Deferred pension and other postretirement benefits
471


422


569


1,319


516

Other liabilities
334


334


318


308


382

Noncurrent liabilities of discontinued operations
35


926


—

 
—

 
32

Total liabilities
7,701


8,563


7,584


8,153


7,745

Equity:









Total Weyerhaeuser shareholders' interest
6,852


7,092


5,856


5,304


6,795

Noncontrolling interests
3


2


—


—


3

Noncontrolling interests in discontinued operations
30


49


—

 
—

 
34

Total equity
6,885


7,143


5,856


5,304


6,832

Total liabilities and equity
$
14,586


$
15,706


$
13,440


$
13,457


$
14,577


Page 2 of 9


Weyerhaeuser Company












 
Q4.2014 Analyst Package













Preliminary results, subject to audit













Consolidated Statement of Cash Flows














in millions
Q1

Q2

Q3

Q4

Year-to-date
 
Mar 31, 2014

Jun 30, 2014

Sep 30, 2014

Dec 31, 2014

Dec 31, 2013

Dec 31, 2014

Dec 31, 2013
Cash flows from operations:













Net earnings
$
194


$
291


$
1,164


$
177


$
54


$
1,826


$
563

Noncash charges (credits) to income:












 
Depreciation, depletion and amortization
126


126


123


125


129


500


472

Deferred income taxes, net
36


89


45


35


(102
)

205


(29
)
Pension and other postretirement benefits
(47
)

(44
)

(13
)

(48
)

22


(152
)

101

Share-based compensation expense
9


11


9


11


8


40


42

Charges for impairment of assets
—


1


—


1


367


2


372

Net gains on dispositions of assets and operations
(25
)

(21
)

(1,002
)

(2
)

(16
)

(1,050
)

(58
)
Foreign exchange transaction (gains) losses
14


(12
)

13


12


1


27


7

Change in:












 
Receivables less allowances
(1
)

(47
)

20


57


85


29


(27
)
Receivable for taxes
67


(3
)

13


(1
)

(70
)

76


(6
)
Inventories
(88
)

34


8


(20
)

(13
)

(66
)

(13
)
Real estate and land
(72
)

(35
)

(26
)

—


13


(133
)

(166
)
Prepaid expenses
3


(3
)

6


11


(10
)

17


(26
)
Accounts payable and accrued liabilities
(80
)

(17
)

21


(22
)

(96
)

(98
)

(51
)
Deposits on land positions and other assets
12


(4
)

7


—


(7
)

15


(18
)
Pension and postretirement contributions
(33
)

(30
)

(22
)

(16
)

(33
)

(101
)

(137
)
Other
(6
)

(14
)

(13
)

(16
)

16


(49
)

(22
)
Net cash from operations
109


322


353


304


348


1,088


1,004















Cash flows from investing activities:













Property and equipment
(51
)

(83
)

(105
)

(115
)

(110
)

(354
)

(261
)
Timberlands reforestation
(14
)

(11
)

(7
)

(9
)

(4
)

(41
)

(32
)
Acquisition of Longview Timber LLC, net of cash acquired
—


—


—


—


—


—


(1,581
)
Net proceeds from Real Estate Divestiture, net of cash divested
—


—


707


—


—


707


—

Proceeds from sale of assets
19


1


4


4


5


28


20

Net proceeds of investments held by special purpose entities
—


—


—


—


—


—


22

Other
—


—


25


(4
)

(2
)

21


3

Cash from investing activities
(46
)

(93
)

624


(124
)

(111
)

361


(1,829
)














Cash flows from financing activities:













Net proceeds from issuance of common shares
—


—


—


—


—


—


897

Net proceeds from issuance of preference shares
—


—


—


—


—


—


669

Net proceeds from issuance of debt
—


—


—


—


550


—


1,044

Net proceeds from issuance of Weyerhaeuser Real Estate
Company (WRECO) debt
—


887


—


—


—


887


—

Deposit of WRECO debt proceeds into escrow
—


(887
)

—


—


—


(887
)

—

Cash dividends on common shares
(129
)

(128
)

(154
)

(152
)

(128
)

(563
)

(458
)
Cash dividends on preference shares
—


(11
)

(11
)

(22
)

(23
)

(44
)

(23
)
Change in book overdrafts
(6
)

—


(11
)

—


(1
)

(17
)

7

Payments on debt
—


—


—


—


(1,227
)

—


(1,567
)
Exercises of stock options
15


39


30


35


21


119


162

Repurchase of common stock
—


—


(123
)

(80
)

—


(203
)

—

Other
2


(1
)

4


(1
)

9


4


31

Cash from financing activities
(118
)

(101
)

(265
)

(220
)

(799
)

(704
)

762















Net change in cash and cash equivalents
(55
)

128


712


(40
)

(562
)

745


(63
)
Cash and cash equivalents at beginning of period
835


780


908


1,620


1,397


835


898

Cash and cash equivalents at end of period
$
780


$
908


$
1,620


$
1,580


$
835


$
1,580


$
835

Cash paid (received) during the year for:













Interest, net of amount capitalized
$
101


$
52


$
100


$
66


$
91


$
319


$
366

Income taxes
$
(50
)

$
5


$
5


$
3


$
12


$
(37
)

$
8

Noncash investing and financing activity:




















Acquisition of Longview Timber LLC, debt assumed
$
—


$
—


$
—


$
—


$
—


$
—


$
1,070

Common shares tendered in WRECO divestiture
$
—


$
—


$
1,954


$
—


$
—


$
1,954


$
—


Page 3 of 9


Weyerhaeuser Company
 
 
 
 
 
 
 
 
Total Company Statistics
 
Q4.2014 Analyst Package
 
 
 
 
 
 
 
 
 
 

 
Preliminary results, subject to audit
 
 
 
 
 
 
 
 
 




Special Items Included in Net Earnings

 
 
 
 









in millions
Q1
 
Q2
 
Q3

Q4

Year-to-date
 
Mar 31, 2014
 
Jun 30, 2014
 
Sep 30, 2014

Dec 31, 2014

Dec 31, 2013

Dec 31, 2014

Dec 31, 2013
Net earnings attributable to Weyerhaeuser common shareholders
$
183

 
$
280

 
$
1,153


$
166


$
43


$
1,782


$
540

Restructuring, impairments and other charges
13

 
5

 
6

 
4

 
247

 
28

 
247

Gain on sale of non-strategic asset
(14
)
 
—

 
—

 
—

 
—

 
(14
)
 
—

Gain on postretirement plan amendment
(29
)
 
(29
)
 
(15
)
 
(25
)
 
—

 
(98
)
 
—

Loss on early extinguishment of debt
—

 
—

 
—

 
—

 
25

 
—

 
25

Tax adjustments
—

 
—

 
—

 
—

 
(168
)
 
—

 
(168
)
Net earnings attributable to Weyerhaeuser common shareholders before special items
153

 
256

 
1,144

 
145

 
147

 
1,698

 
644

Earnings from discontinued operations, net of income taxes
(10
)
 
(22
)
 
(966
)
 
—

 
(36
)
 
(998
)
 
(72
)
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items
$
143

 
$
234

 
$
178


$
145


$
111


$
700


$
572


 
 
 
 
 
 
 
 
 




 
Q1
 
Q2
 
Q3

Q4

Year-to-date
 
Mar 31, 2014
 
Jun 30, 2014
 
Sep 30, 2014

Dec 31, 2014

Dec 31, 2013

Dec 31, 2014

Dec 31, 2013
Net earnings per diluted share attributable to Weyerhaeuser common shareholders
$
0.31

 
$
0.47

 
$
2.15


$
0.31


$
0.07


$
3.18


$
0.95

Restructuring, impairments and other charges
0.02

 
0.01

 
0.01


0.01


0.42


0.05


0.42

Gain on sale of non-strategic asset
(0.02
)
 
—

 
—

 
—

 
—

 
(0.02
)
 
—

Gain on postretirement plan amendment
(0.05
)
 
(0.04
)
 
(0.03
)
 
(0.05
)
 
—

 
(0.18
)
 
—

Loss on early extinguishment of debt
—

 
—

 
—

 
—

 
0.05

 
—

 
0.05

Tax adjustments
—

 
—

 
—

 
—

 
(0.29
)
 
—

 
(0.30
)
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items
0.26


0.44


2.13


0.27


0.25


3.03


1.12

Earnings from discontinued operations, net of income taxes
(0.02
)
 
(0.04
)
 
(1.80
)
 
—

 
(0.06
)
 
(1.78
)
 
(0.13
)
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items
$
0.24


$
0.40


$
0.33

 
$
0.27

 
$
0.19

 
$
1.25

 
$
0.99


Selected Total Company Items

in millions
Q1
 
Q2
 
Q3

Q4

Year-to-date
 
Mar 31, 2014
 
Jun 30, 2014
 
Sep 30, 2014

Dec 31, 2014

Dec 31, 2013

Dec 31, 2014

Dec 31, 2013
Depreciation, depletion and amortization:
 
 
 
 











Cost of products sold
$
117

 
$
117

 
$
117

 
$
119

 
$
120

 
$
470

 
$
435

Selling, general and administrative expenses
6

 
5

 
6

 
6

 
5

 
23

 
23

Total depreciation, depletion and amortization
$
123

 
$
122

 
$
123


$
125


$
125


$
493


$
458


 
 
 
 
 



 






Pension and postretirement costs:
 
 
 
 
 










Pension and postretirement costs allocated to business segments
$
10

 
$
12

 
$
11


$
12


$
14


$
45


$
56

Pension and postretirement costs (credits) not allocated
(10
)
 
(11
)
 
(12
)

(12
)

9


(45
)

40

Total company pension and postretirement costs
$
—

 
$
1

 
$
(1
)

$
—


$
23


$
—


$
96


 
 
 
 
 










Total decrease (increase) in working capital(1)
$
(170
)
 
$
49

 
$
106


$
6


$
(17
)

$
(9
)

$
(52
)
Cash spent for capital expenditures
$
(63
)
 
$
(92
)
 
$
(112
)

$
(124
)

$
(113
)

$
(391
)
 
$
(283
)
(1) Working capital does not include cash balances.
 
 
 
 















Page 4 of 9


Weyerhaeuser Company
 
 
 
 
 
 
 
 
Timberlands Segment
 
Q4.2014 Analyst Package
 
 
 
 


 
 
 


 
Preliminary results, subject to audit
 
 
 
 











 
 
 
 









Segment Statement of Operations


 
 
 
 









in millions

Q1.2014
 
Q2.2014
 
Q3.2014

Q4.2014

Q4.2013

YTD.2014

YTD.2013
Sales to unaffiliated customers
$
377

 
$
397

 
$
364

 
$
359

 
$
364

 
$
1,497

 
$
1,343

Intersegment sales
238

 
186

 
218

 
225

 
215

 
867

 
799

Total net sales
615

 
583

 
582

 
584

 
579

 
2,364

 
2,142

Cost of products sold
431

 
399

 
432

 
424

 
425

 
1,686

 
1,592

Gross margin
184

 
184

 
150

 
160

 
154

 
678

 
550

Selling expenses
2

 
2

 
2

 
1

 
2

 
7

 
10

General and administrative expenses
26

 
23

 
23

 
25

 
26

 
97

 
103

Research and development expenses
4

 
3

 
4

 
5

 
6

 
16

 
19

Charges for restructuring, closures and impairments
—

 
—

 
1

 
—

 
—

 
1

 
2

Other operating income, net
(12
)
 
(14
)
 
(16
)
 
(14
)
 
(13
)
 
(56
)
 
(50
)
Operating income
164

 
170

 
136

 
143

 
133

 
613

 
466

Interest income and other
—

 
—

 
—

 
—

 
1

 
—

 
4

Net contribution to earnings
$
164

 
$
170

 
$
136

 
$
143

 
$
134

 
$
613

 
$
470



 
 
 
 












Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*


 
 
 
 












in millions

Q1.2014
 
Q2.2014
 
Q3.2014

Q4.2014

Q4.2013
 
YTD.2014
 
YTD.2013
Operating income
$
164

 
$
170

 
$
136

 
$
143

 
$
133

 
$
613

 
$
466

Depreciation, depletion and amortization
52

 
51

 
51

 
53

 
51

 
207

 
166

Adjusted EBITDA*
$
216

 
$
221

 
$
187

 
$
196

 
$
184

 
$
820

 
$
632

* Non-GAAP measure - see page 8 for definition.
 
 
 
 














 
 
 
 












Selected Segment Items


 
 
 
 












 

Q1.2014
 
Q2.2014
 
Q3.2014

Q4.2014

Q4.2013
 
YTD.2014
 
YTD.2013
Total decrease (increase) in working capital(1)
$
(29
)
 
$
(15
)
 
$
25

 
$
8

 
$
(7
)
 
$
(11
)
 
$
(7
)
Cash spent for capital expenditures
$
(19
)
 
$
(18
)
 
$
(19
)
 
$
(18
)
 
$
(21
)
 
$
(74
)
 
$
(73
)
(1) Working capital does not include cash balances.
 
 
 
 














 
 
 
 












Segment Statistics


 
 
 
 













Q1.2014
 
Q2.2014
 
Q3.2014

Q4.2014

Q4.2013
 
YTD.2014
 
YTD.2013
Third Party
Net Sales
(millions)
Logs:

 

 









West
$
257

 
$
261

 
$
227


$
227


$
230

 
$
972

 
$
828

South
62

 
60

 
69


66


64

 
257

 
256

Canada
6

 
1

 
5


10


4

 
22

 
19

Total logs
325

 
322

 
301

 
303

 
298

 
1,251

 
1,103

Chip sales
3

 
2

 
4


3


2

 
12

 
9

Timberlands exchanges
4

 
28

 
17


3


21

 
52

 
65

Higher and better use land sales
3

 
7

 
4


5


9

 
19

 
19

Minerals, oil and gas
7

 
8

 
10


7


6

 
32

 
32

Products from international operations
24

 
26

 
22


24


22

 
96

 
90

Other products
11

 
4

 
6


14


6

 
35

 
25

Total
$
377

 
$
397

 
$
364

 
$
359

 
$
364

 
$
1,497

 
$
1,343

Logs
Third Party Sales
Realizations
(per cubic meter)
West
$
114.46

 
$
109.13

 
$
102.23


$
106.73


$
104.91

 
$
108.19

 
$
107.36

South
$
44.88

 
$
45.16

 
$
45.30


$
45.56


$
43.72

 
$
45.23

 
$
43.49

Canada
$
35.30

 
$
38.04

 
$
37.75


$
38.82


$
38.68

 
$
37.58

 
$
37.71

International
$
16.99

 
$
16.27

 
$
19.95


$
18.64


$
23.05

 
$
18.06

 
$
24.22

Logs
Third Party Sales
Volumes
(cubic meters, thousands)
West
2,246

 
2,390

 
2,223


2,121


2,185

 
8,980

 
7,708

South
1,385

 
1,339

 
1,500


1,454


1,468

 
5,678

 
5,888

Canada
156

 
30

 
152


254


128

 
592

 
511

International
147

 
139

 
170


148


112

 
604

 
357

Total
3,934

 
3,898

 
4,045

 
3,977

 
3,893

 
15,854

 
14,464

Logs
Fee Harvest Volumes
(cubic meters, thousands)
West
2,875

 
2,888

 
2,656


2,754


2,686

 
11,173

 
8,907

South
2,866

 
2,715

 
2,950


3,145


3,007

 
11,676

 
11,596

International
249

 
249

 
232


260


243

 
990

 
818

Total
5,990

 
5,852

 
5,838

 
6,159

 
5,936

 
23,839

 
21,321


Page 5 of 9


Weyerhaeuser Company
 
 
 
 
 
 
 
 
Wood Products Segment
 
Q4.2014 Analyst Package
 
 
 
 


 
 
 
 

 
Preliminary results, subject to audit
 
 
 
 











 
 
 
 









Segment Statement of Operations  


 
 
 
 









in millions

Q1.2014
 
Q2.2014
 
Q3.2014
 
Q4.2014
 
Q4.2013
 
YTD.2014
 
YTD.2013
Sales to unaffiliated customers
$
898

 
$
1,077

 
$
1,048


$
947


$
926

 
$
3,970

 
$
4,009

Intersegment sales
19

 
21

 
20


20


16

 
80

 
71

Total net sales
917

 
1,098

 
1,068


967


942

 
4,050

 
4,080

Cost of products sold
791

 
939

 
910


855


826

 
3,495

 
3,385

Gross margin
126

 
159

 
158


112


116

 
555

 
695

Selling expenses
25

 
23

 
22


24


24

 
94

 
98

General and administrative expenses
37

 
30

 
31


32


32

 
130

 
141

Research and development expenses
1

 
2

 
—


1


2

 
4

 
6

Charges for restructuring, closures and impairments
—

 
2

 
—


—


11

 
2

 
13

Other operating income, net
(1
)
 
—

 
—


(1
)

(1
)
 
(2
)
 
(4
)
Operating income
64

 
102

 
105


56


48

 
327

 
441

Interest income and other
—

 
—

 
—


—


—

 
—

 
—

Net contribution to earnings
$
64

 
$
102

 
$
105


$
56


$
48

 
$
327

 
$
441



 
 
 
 












Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*


 
 
 
 












in millions

Q1.2014
 
Q2.2014
 
Q3.2014
 
Q4.2014
 
Q4.2013
 
YTD.2014
 
YTD.2013
Operating income
$
64

 
$
102

 
$
105

 
$
56

 
$
48

 
$
327

 
$
441

Depreciation, depletion and amortization
29

 
30

 
30


30


30

 
119

 
123

Special items
—

 
—

 
—


—


10


—


10

Adjusted EBITDA*
$
93

 
$
132

 
$
135


$
86


$
88


$
446


$
574

* Non-GAAP measure - see page 8 for definition.
 
 
 
 














 
 
 
 












Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)  


 
 
 
 












 

Q1.2014
 
Q2.2014
 
Q3.2014
 
Q4.2014
 
Q4.2013
 
YTD.2014
 
YTD.2013
Charges for restructuring, closures and impairments
$
—

 
$
—

 
$
—


$
—


$
(10
)

$
—


$
(10
)


 
 
 
 












Selected Segment Items


 
 
 
 












 

Q1.2014
 
Q2.2014
 
Q3.2014
 
Q4.2014
 
Q4.2013
 
YTD.2014
 
YTD.2013
Total decrease (increase) in working capital(1)
$
(137
)
 
$
29

 
$
41

 
$
29

 
$
40

 
$
(38
)
 
$
(5
)
Cash spent for capital expenditures
$
(18
)
 
$
(38
)
 
$
(56
)
 
$
(78
)
 
$
(61
)
 
$
(190
)
 
$
(113
)
(1) Working capital does not include cash balances.
 
 
 
 














 
 
 
 












Segment Statistics


 
 
 
 












in millions, except for third-party sales realizations
Q1.2014
 
Q2.2014
 
Q3.2014
 
Q4.2014
 
Q4.2013
 
YTD.2014
 
YTD.2013
Structural Lumber
(board feet)
Third party net sales
$
427

 
$
515

 
$
500

 
$
459

 
$
440

 
$
1,901

 
$
1,873

Third party sales realizations
$
432

 
$
427

 
$
431

 
$
415

 
$
413

 
$
426

 
$
422

Third party sales volumes(1)
989

 
1,206

 
1,162

 
1,106

 
1,066

 
4,463

 
4,436

Production volumes
1,009

 
1,081

 
1,049

 
1,013

 
970

 
4,152

 
4,084

Outside purchase volumes
78

 
82

 
91

 
94

 
83

 
345

 
354

Engineered Solid
Section
(cubic feet)
Third party net sales
$
90

 
$
114

 
$
104

 
$
94

 
$
90

 
$
402

 
$
353

Third party sales realizations
$
1,959

 
$
1,976

 
$
2,031

 
$
2,060

 
$
2,006

 
$
2,005

 
$
1,936

Third party sales volumes(1)
4.6

 
5.8

 
5.1

 
4.5

 
4.5

 
20.0

 
18.2

Production volumes
4.9

 
5.7

 
5.2

 
4.6

 
4.2

 
20.4

 
18.0

Outside purchase volumes
1.8

 
0.5

 
—

 
—

 
0.2

 
2.3

 
1.8

Engineered
I-joists
(lineal feet)
Third party net sales
$
59

 
$
81

 
$
74

 
$
63

 
$
63

 
$
277

 
$
247

Third party sales realizations
$
1,454

 
$
1,470

 
$
1,540

 
$
1,549

 
$
1,485

 
$
1,502

 
$
1,393

Third party sales volumes(1)
40

 
55

 
49

 
40

 
42

 
184

 
177

Production volumes
44

 
55

 
50

 
33

 
38

 
182

 
168

Outside purchase volumes
1

 
3

 
1

 
2

 
2

 
7

 
8

Oriented Strand
Board
(square feet 3/8')
Third party net sales
$
148

 
$
159

 
$
157

 
$
146

 
$
161

 
$
610

 
$
809

Third party sales realizations
$
230

 
$
226

 
$
215

 
$
206

 
$
237

 
$
219

 
$
292

Third party sales volumes(1)
641

 
706

 
732

 
709

 
678

 
2,788

 
2,772

Production volumes
657

 
681

 
717

 
694

 
673

 
2,749

 
2,723

Outside purchase volumes
53

 
51

 
52

 
61

 
54

 
217

 
227

Softwood Plywood
(square feet 3/8')
Third party net sales
$
30

 
$
35

 
$
42

 
$
36

 
$
29

 
$
143

 
$
144

Third party sales realizations
$
332

 
$
348

 
$
381

 
$
384

 
$
339

 
$
362

 
$
358

Third party sales volumes(1)
90

 
102

 
110

 
93

 
87

 
395

 
402

Production volumes
59

 
60

 
72

 
61

 
55

 
252

 
241

Outside purchase volumes
33

 
36

 
31

 
42

 
40

 
142

 
155

(1) Sales volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

Page 6 of 9


Weyerhaeuser Company
 
 
 
 
 
 
 
 
Cellulose Fibers Segment
 
Q4.2014 Analyst Package
 
 
 
 


 
 
 
 

 
Preliminary results, subject to audit
 
 
 
 











 
 
 
 









Segment Statement of Operations


 
 
 
 









in millions

Q1.2014

Q2.2014

Q3.2014

Q4.2014

Q4.2013
 
YTD.2014
 
YTD.2013
Total net sales
$
461


$
490


$
503


$
482


$
478

 
$
1,936

 
$
1,902

Cost of products sold
390


381


427


379


397

 
1,577

 
1,621

Gross margin
71


109


76


103


81

 
359

 
281

Selling expenses
4


4


3


4


3

 
15

 
17

General and administrative expenses
20


20


18


18


17

 
76

 
79

Research and development expenses
2


2


1


2


2

 
7

 
8

Other operating income, net
(9
)

(8
)

(6
)

(8
)

(2
)
 
(31
)
 
(20
)
Operating income
54


91


60


87


61

 
292

 
197

Interest income and other
—


—


(1
)

—


4

 
(1
)
 
3

Net contribution to earnings
$
54


$
91


$
59


$
87


$
65

 
$
291

 
$
200



 
 
 
 












Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*


 
 
 
 












in millions

Q1.2014

Q2.2014

Q3.2014

Q4.2014

Q4.2013
 
YTD.2014
 
YTD.2013
Operating income
$
54


$
91


$
60


$
87


$
61

 
$
292

 
$
197

Depreciation, depletion and amortization
38


39


39


39


40

 
155

 
156

Adjusted EBITDA*
$
92


$
130


$
99


$
126


$
101


$
447


$
353

* Non-GAAP measure - see page 8 for definition.
 
 
 
 














 
 
 
 












Selected Segment Items


















 

Q1.2014

Q2.2014

Q3.2014

Q4.2014

Q4.2013
 
YTD.2014
 
YTD.2013
Total decrease (increase) in working capital(1)
$
31


$
(37
)

$
39


$
(47
)

$
(12
)
 
$
(14
)
 
$
12

Cash spent for capital expenditures
$
(26
)

$
(35
)

$
(36
)

$
(26
)

$
(30
)
 
$
(123
)
 
$
(92
)
(1) Working capital does not include cash balances.
 
 
 
 














 
 
 
 









Segment Statistics


 
 
 
 














Q1.2014

Q2.2014

Q3.2014

Q4.2014

Q4.2013
 
YTD.2014
 
YTD.2013
Pulp
(air-dry metric tons)
Third party net sales (millions)
$
363


$
383


$
408


$
405


$
390

 
$
1,559

 
$
1,501

Third party sales realizations
$
825


$
845


$
858


$
886


$
818

 
$
854

 
$
804

Third party sales volumes (thousands)
440


454


474


458


477

 
1,826

 
1,866

Production volumes (thousands)
459


467


465


468


450

 
1,859

 
1,815

Liquid
Packaging
Board
(tons)
Third party net sales (millions)
$
80


$
87


$
80


$
63


$
72

 
$
310

 
$
326

Third party sales realizations
$
1,122


$
1,165


$
1,185


$
1,028


$
1,029

 
$
1,129

 
$
1,068

Third party sales volumes (thousands)
71


75


68


60


70

 
274

 
305

Production volumes (thousands)
78


79


57


78


85

 
292

 
307



Page 7 of 9


Weyerhaeuser Company
 
 
 
 
 
 
 
 
Unallocated Items
 
Q4.2014 Analyst Package
 
 
 
 


 
 
 
 

 
Preliminary results, subject to audit
 
 
 
 










 
 
 
 









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 outstanding borrowings and the elimination of intersegment profit in inventory and the LIFO reserve.

 
 
 
 









Contribution to Earnings

 
 
 
 









in millions
Q1.2014

Q2.2014

Q3.2014

Q4.2014

Q4.2013
 
YTD.2014
 
YTD.2013
Unallocated corporate function expenses
$
(7
)

$
(7
)

$
(3
)

$
(7
)

$
(12
)
 
$
(24
)
 
$
(38
)
Unallocated share-based compensation
3


(6
)

1


(7
)

(5
)
 
(9
)
 
(8
)
Unallocated pension & postretirement credits (costs)
55


56


35


50


(9
)
 
196

 
(40
)
Foreign exchange gains (losses)
(15
)

13


(14
)

(11
)

(1
)
 
(27
)
 
(7
)
Elimination of intersegment profit in inventory and LIFO
(19
)

(1
)

12


(2
)

6

 
(10
)
 
15

Other
9


(18
)

(14
)

(15
)

(376
)
 
(38
)
 
(392
)
Operating income (loss)
26


37


17


8


(397
)
 
88

 
(470
)
Interest income and other
9


11


8


10


11

 
38

 
48

Net contribution to earnings from continuing operations(1)
$
35


$
48


$
25


$
18


$
(386
)
 
$
126

 
$
(422
)
(1) We have reclassified certain results from the prior periods to present the results of operations discontinued in 2014 separately.
Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders’ interest.
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 









Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

 
 
 
 









in millions
Q1.2014

Q2.2014

Q3.2014

Q4.2014

Q4.2013
 
YTD.2014
 
YTD.2013
Operating income (loss)
$
26


$
37


$
17


$
8


$
(397
)
 
$
88

 
$
(470
)
Depreciation, depletion and amortization
4


2


3


3


4

 
12

 
13

Non-operating pension and postretirement costs (credits)
(10
)

(11
)

(12
)

(12
)

9

 
(45
)
 
40

Special items
(49
)

(39
)

(15
)

(31
)

356

 
(134
)
 
356

Adjusted EBITDA*
$
(29
)

$
(11
)

$
(7
)

$
(32
)

$
(28
)

$
(79
)

$
(61
)
* Non-GAAP measure - see below for definition.
 
 
 
 










 
 
 
 









Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)

 
 
 
 









 
Q1.2014

Q2.2014

Q3.2014

Q4.2014

Q4.2013
 
YTD.2014
 
YTD.2013
Gain on postretirement plan amendment
$
45


$
45


$
23


$
38


$
—

 
$
151

 
$
—

Restructuring, impairments and other charges
(18
)

(6
)

(8
)

(7
)

(356
)
 
(39
)
 
(356
)
Gain on sale of non-strategic asset
22


—


—


—


—

 
22

 
—

Total
$
49


$
39


$
15


$
31


$
(356
)

$
134


$
(356
)

 
 
 
 









Unallocated Selected Items

 
 
 
 









 
Q1.2014

Q2.2014

Q3.2014

Q4.2014

Q4.2013
 
YTD.2014
 
YTD.2013
Total decrease (increase) in working capital(1)
$
(35
)

$
72


$
1


$
16


$
(38
)
 
$
54

 
$
(52
)
Cash spent for capital expenditures
$
—


$
(1
)

$
(1
)

$
(2
)

$
(1
)
 
$
(4
)
 
$
(5
)
(1) Working capital does not include cash balances.
 
 
 
 










 
 
 
 









*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special items and discontinued operations. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.

Page 8 of 9


Weyerhaeuser Company
 
 
 
 


 
 
 
Discontinued Operations
 
Q4.2014 Analyst Package
 
 
 
 


 
 
 
 

 
Preliminary results, subject to audit
 
 
 
 










 
 
 
 









Discontinued operations relate to WRECO, which was combined with TRI Pointe Homes, Inc. through a Reverse Morris Trust transaction on July 7, 2014. It was previously reported under the Real Estate segment and Unallocated Items.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discontinued Operations Statement of Operations

 
 
 
 









in millions
Q1.2014

Q2.2014

Q3.2014

Q4.2014

Q4.2013

YTD.2014

YTD.2013
Total net sales
$
248


$
317


$
8


$
—


$
488

 
$
573

 
$
1,275

Income (loss) from operations
$
16


$
27


$
(1
)

$
—


$
58

 
$
42

 
$
114

Income taxes
(6
)

(5
)

(5
)

—


(22
)
 
(16
)
 
(42
)
Net earnings (loss) from operations
10


22


(6
)

—


36

 
26

 
72

Net gain on divestiture
—


—


972


—


—

 
972

 
—

Net earnings from discontinued operations
$
10


$
22


$
966


$
—


$
36

 
$
998

 
$
72



Page 9 of 9