BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2015

BUSINESS SEGMENTS

BUSINESS SEGMENTS

We are principally engaged in growing and harvesting timber and manufacturing, distributing and selling products made from trees. 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 wood products, structural panels and building materials distribution; and

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

We have disposed of Weyerhaeuser Real Estate Company (WRECO) that is excluded from the segment results below. See Note 3: Discontinued Operations for information regarding our discontinued 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 2015			MARCH 2014
Sales to unaffiliated customers:
Timberlands	$	351		$	377
Wood Products	923			898
Cellulose Fibers	447			461
	1,721			1,736
Intersegment sales:
Timberlands	228			238
Wood Products	19			19
	247			257
Total sales	1,968			1,993
Intersegment eliminations	(247		)	(257		)
Total	$	1,721		$	1,736
Net contribution to earnings:
Timberlands	$	162		$	164
Wood Products	62			64
Cellulose Fibers	33			54
	257			282
Unallocated Items(1)	(54		)	35
Net contribution to earnings from discontinued operations	—			16
Net contribution to earnings	203			333
Interest expense, net of capitalized interest (continuing and discontinued operations)	(83		)	(83		)
Income before income taxes (continuing and discontinued operations)	120			250
Income taxes (continuing and discontinued operations)	(19		)	(56		)
Net earnings	101			194
Dividends on preference shares	(11		)	(11		)
Net earnings attributable to Weyerhaeuser common shareholders	$	90		$	183

(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.