EX-99.2 3 wy2015q4ex-992.htm EXHIBIT 99.2 Exhibit


Weyerhaeuser Company
 
 


 
 


 
 

Exhibit 99.2
 
Q4.2015 Analyst Package
 
 



 
 


 
 


 
Preliminary results (unaudited)
 
 


 
 







Consolidated Statement of Operations

 
 


 
 







in millions
Q1
 
Q2
 
Q3
 
Q4
 
Year-to-date
 
Mar 31, 2015
 
Jun 30, 2015
 
Sep 30, 2015
 
Dec 31, 2015
 
Dec 31, 2014
 
Dec 31, 2015
 
Dec 31, 2014
Net Sales
$
1,721

 
$
1,807

 
$
1,820

 
$
1,734

 
$
1,788

 
$
7,082

 
$
7,403

Cost of products sold
1,385

 
1,474

 
1,445

 
1,390

 
1,399

 
5,694

 
5,763

Gross margin
336

 
333

 
375

 
344

 
389

 
1,388

 
1,640

Selling expenses
28

 
28

 
27

 
30

 
29

 
113

 
112

General and administrative expenses
74

 
71

 
60

 
84

 
89

 
289

 
338

Research and development expenses
5

 
6

 
6

 
7

 
8

 
24

 
27

Charges for restructuring, closures and impairments
14

 
—

 
2

 
9

 
7

 
25

 
44

Other operating costs (income), net
15

 
(15
)
 
21

 
(3
)
 
(38
)
 
18

 
(201
)
Operating income
200

 
243

 
259

 
217

 
294

 
919

 
1,320

Loss from equity affiliates(1)
(6
)
 
(7
)
 
(5
)
 
(87
)
 
—

 
(105
)
 
(1
)
Interest income and other
9

 
9

 
9

 
9

 
10

 
36

 
38

Interest expense, net of capitalized interest
(83
)
 
(88
)
 
(88
)
 
(88
)
 
(90
)
 
(347
)
 
(344
)
Earnings from continuing operations before income taxes
120

 
157

 
175

 
51

 
214

 
503

 
1,013

Income tax (expense) benefit
(19
)
 
(13
)
 
16

 
19

 
(37
)
 
3

 
(185
)
Earnings from continuing operations
101

 
144

 
191

 
70

 
177

 
506

 
828

Earnings from discontinued operations, net of income taxes
—

 
—

 
—

 
—

 
—

 
—

 
998

Net earnings
101

 
144

 
191

 
70

 
177

 
506

 
1,826

Dividends on preference shares
(11
)
 
(11
)
 
(11
)
 
(11
)
 
(11
)
 
(44
)
 
(44
)
Net earnings attributable to Weyerhaeuser common shareholders
$
90

 
$
133

 
$
180

 
$
59

 
$
166

 
$
462

 
$
1,782

(1) Loss from equity affiliates in Q4 2015 includes an $84 million non-cash charge for our share of an asset impairment recorded by an equity affiliate.
 
Per Share Information


Q1
 
Q2
 
Q3
 
Q4
 
Year-to-date
 
Mar 31, 2015
 
Jun 30, 2015
 
Sep 30, 2015
 
Dec 31, 2015
 
Dec 31, 2014
 
Dec 31, 2015
 
Dec 31, 2014
Earnings per share attributable to Weyerhaeuser common shareholders, basic:
 

 


 


 


 


Continuing operations
$
0.17

 
$
0.26

 
$
0.35

 
$
0.11

 
$
0.32

 
$
0.89

 
$
1.41

Discontinued operations
—

 
—

 
—

 


 
—

 
—

 
1.79

Net earnings per share
$
0.17

 
$
0.26

 
$
0.35

 
$
0.11

 
$
0.32

 
$
0.89

 
$
3.20

Earnings per share attributable to Weyerhaeuser common shareholders, diluted:
 
 

 


 


 


 


Continuing operations
$
0.17

 
$
0.26

 
$
0.35

 
$
0.11

 
$
0.31

 
$
0.89

 
$
1.40

Discontinued operations
—

 
—

 
—

 
—

 
—

 
—

 
1.78

Net earnings per share
$
0.17

 
$
0.26

 
$
0.35

 
$
0.11

 
$
0.31

 
$
0.89

 
$
3.18

Dividends paid per common share
$
0.29

 
$
0.29

 
$
0.31

 
$
0.31

 
$
0.29

 
$
1.20

 
$
1.02

Weighted average shares outstanding (in thousands):
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic
523,426

 
516,626

 
514,301

 
511,175

 
524,838

 
516,371

 
556,705

Diluted
527,423

 
519,804

 
517,088

 
514,167

 
529,411

 
519,618

 
560,899

Common shares outstanding at end of period
(in thousands)
518,735

 
514,121

 
511,033

 
510,483

 
524,474

 
510,483

 
524,474


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

 
 
 
 
 
 
 
 
 
 
 
 
 
in millions
Q1
 
Q2
 
Q3
 
Q4
 
Year-to-date
 
Mar 31, 2015
 
Jun 30, 2015
 
Sep 30, 2015
 
Dec 31, 2015
 
Dec 31, 2014
 
Dec 31, 2015
 
Dec 31, 2014
Net earnings
$
101

 
$
144

 
$
191

 
$
70

 
$
177

 
$
506

 
$
1,826

Earnings from discontinued operations, net of income taxes
—

 
—

 
—

 
—

 
—

 
—

 
(998
)
Loss from equity affiliates(1)
6

 
7

 
5

 
87

 
—

 
105

 
1

Interest income and other
(9
)
 
(9
)
 
(9
)
 
(9
)
 
(10
)
 
(36
)
 
(38
)
Interest expense, net of capitalized interest
83

 
88

 
88

 
88

 
90

 
347

 
344

Income tax expense (benefit)
19

 
13

 
(16
)
 
(19
)
 
37

 
(3
)
 
185

Operating income
200

 
243

 
259

 
217

 
294

 
919

 
1,320

Depreciation, depletion and amortization
123

 
118

 
118

 
120

 
125

 
479

 
493

Non-operating pension and postretirement credits
(3
)
 
(3
)
 
(2
)
 
(3
)
 
(12
)
 
(11
)
 
(45
)
Special items in operating income
13

 
—

 
—

 
22

 
(31
)
 
35

 
(134
)
Adjusted EBITDA*
$
333

 
$
358

 
$
375

 
$
356

 
$
376

 
$
1,422

 
$
1,634

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

Page 1 of 9


Weyerhaeuser Company
 
 
 
 



 
Q4.2015 Analyst Package
 
 
 
 





Preliminary results (unaudited)
 
 
 
 





Consolidated Balance Sheet










in millions
March 31,
2015

June 30,
2015

September 30,
2015

December 31,
2015

December 31,
2014
 


ASSETS









Current assets:









Cash and cash equivalents
$
1,158


$
1,121


$
1,048


$
1,012


$
1,580

Receivables, less allowances
539


537


545


487


525

Receivables for taxes
23


12


14


30


25

Inventories
645


603


590


568


595

Prepaid expenses
95


82


87


77


80

Total current assets
2,460


2,355


2,284


2,174


2,805

Property and equipment, net
2,524


2,557


2,484


2,586


2,623

Construction in progress
171


171


231


195


131

Timber and timberlands at cost, less depletion charged to disposals
6,552


6,531


6,507


6,480


6,530

Investments in and advances to equity affiliates
183


176


174


74


188

Goodwill
40


40


40


40


40

Deferred tax assets
34


22


15


4


44

Other assets
269


274


267


318


289

Restricted financial investments held by variable interest entities
615


615


615


615


615

Total assets
$
12,848


$
12,741


$
12,617


$
12,486


$
13,265


 

 

 




LIABILITIES AND EQUITY
 

 

 




Current liabilities:
 

 

 




Accounts payable
319


343


344


326


331

Accrued liabilities
533


576


554


549


587

Total current liabilities
852


919


898


875


918

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
34


54


56


86


14

Deferred pension and other postretirement benefits
1,249


1,166


1,106


987


1,319

Other liabilities
284


275


277


267


308

Total liabilities
7,821


7,816


7,739


7,617


7,961

Total equity
5,027


4,925


4,878


4,869


5,304

Total liabilities and equity
$
12,848


$
12,741


$
12,617


$
12,486


$
13,265


Page 2 of 9


Weyerhaeuser Company












 
Q4.2015 Analyst Package













Preliminary results (unaudited)













Consolidated Statement of Cash Flows














in millions
Q1

Q2

Q3

Q4

Year-to-date
 
Mar 31, 2015

Jun 30, 2015

Sep 30, 2015

Dec 31, 2015

Dec 31, 2014

Dec 31, 2015

Dec 31, 2014
Cash flows from operations:













Net earnings
$
101


$
144


$
191


$
70


$
177


$
506


$
1,826

Noncash charges (credits) to income:












 
Depreciation, depletion and amortization
123


118


118


120


125


479


500

Deferred income taxes, net
13


3


(6
)

(10
)

35


—


205

Pension and other postretirement benefits
10


11


11


10


(48
)

42


(152
)
Share-based compensation expense
8


8


6


9


11


31


40

Charges for impairment of assets
13


—


1


1


1


15


2

(Earnings) loss from equity affiliates
6

 
7

 
5

 
87

 
—

 
105

 
1

Net gains on dispositions of assets and operations
(16
)

(5
)

(9
)

(8
)

(2
)

(38
)

(1,050
)
Foreign exchange transaction (gains) losses
29


(8
)

20


6


12


47


27

Change in:












 
Receivables less allowances
(16
)

(10
)

(15
)

58


57


17


29

Receivable for taxes
2


12


(3
)

(16
)

(1
)

(5
)

76

Inventories
(57
)

42


6


19


(20
)

10


(66
)
Real estate and land
—


—


—


—


—


—


(133
)
Prepaid expenses
(11
)

9


—


5


11


3


17

Accounts payable and accrued liabilities
(91
)

66


(22
)

12


(22
)

(35
)

(98
)
Deposits on land positions and other assets
—


—


—


—


—


—


15

Pension and postretirement contributions
(20
)

(19
)

(20
)

(24
)

(16
)

(83
)

(101
)
Other
(17
)

(12
)

(1
)

—


(16
)

(30
)

(50
)
Net cash from operations
77


366


282


339


304


1,064


1,088















Cash flows from investing activities:













Property and equipment
(71
)

(99
)

(106
)

(167
)

(115
)

(443
)

(354
)
Timberlands reforestation
(18
)

(9
)

(6
)

(7
)

(9
)

(40
)

(41
)
Acquisition of timberlands
(32
)
 
—

 
(2
)
 
(2
)
 
(3
)
 
(36
)
 
—

Net proceeds from Real Estate Divestiture, net of cash divested
—


—


—


—


—


—


707

Proceeds from sale of assets
2


4


1


12


4


19


28

Other
—


12


—


1


(1
)

13


21

Cash from investing activities
(119
)

(92
)

(113
)

(163
)

(124
)

(487
)

361















Cash flows from financing activities:













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


—


—


—


—


—


887

Deposit of WRECO debt proceeds into escrow
—


—


—


—


—


—


(887
)
Cash dividends on common shares
(152
)

(149
)

(159
)

(159
)

(152
)

(619
)

(563
)
Cash dividends on preference shares
—


(11
)

(11
)

(22
)

(22
)

(44
)

(44
)
Change in book overdrafts
—


—


—


—


—


—


(17
)
Exercises of stock options
21


4


4


5


35


34


119

Repurchase of common stock
(253
)

(154
)

(77
)

(34
)

(80
)

(518
)

(203
)
Other
4


(1
)

1


(2
)

(1
)

2


4

Cash from financing activities
(380
)

(311
)

(242
)

(212
)

(220
)

(1,145
)

(704
)














Net change in cash and cash equivalents
(422
)

(37
)

(73
)

(36
)

(40
)

(568
)

745

Cash and cash equivalents at beginning of period
1,580


1,158


1,121


1,048


1,620


1,580


835

Cash and cash equivalents at end of period
$
1,158


$
1,121


$
1,048


$
1,012


$
1,580


$
1,012


$
1,580

Cash paid (received) during the year for:













Interest, net of amount capitalized
$
114


$
58


$
118


$
57


$
66


$
347


$
319

Income taxes
$
1


$
4


$
(1
)

$
10


$
3


$
14


$
(37
)
Noncash investing and financing activity:




















Common shares tendered in WRECO divestiture
$
—


$
—


$
—


$
—


$
—


$
—


$
1,954


Page 3 of 9


Weyerhaeuser Company
 
 
 
 
 
 
 
 
Total Company Statistics
 
Q4.2015 Analyst Package
 
 
 
 
 
 
 
 
 
 

 
Preliminary results (unaudited)
 
 
 
 
 
 
 
 
 




Special Items Included in Net Earnings

 
 
 
 









in millions
Q1
 
Q2
 
Q3

Q4

Year-to-date
 
Mar 31, 2015
 
Jun 30, 2015
 
Sep 30, 2015

Dec 31, 2015

Dec 31, 2014

Dec 31, 2015

Dec 31, 2014
Net earnings attributable to Weyerhaeuser common shareholders
$
90

 
$
133

 
$
180

 
$
59

 
$
166

 
$
462

 
$
1,782

Restructuring, impairments and other charges
9

 
—

 
—

 
5

 
4

 
14

 
28

Gain on sale of non-strategic asset
—

 
—

 
—

 
—

 
—

 
—

 
(14
)
Gain on postretirement plan amendment
—

 
—

 
—

 
—

 
(25
)
 
—

 
(98
)
Plum Creek merger-related costs
—

 
—

 
—

 
14

 
—

 
14

 
—

Impairment charge recorded by equity method affiliate
—

 
—

 
—

 
56

 
—

 
56

 
—

Tax adjustments
—

 
—

 
—

 
(13
)
 
—

 
(13
)
 
—

Net earnings attributable to Weyerhaeuser common shareholders before special items
99

 
133

 
180

 
121

 
145

 
533

 
1,698

Earnings from discontinued operations, net of income taxes
—

 
—

 
—

 
—

 
—

 
—

 
(998
)
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items
$
99

 
$
133

 
$
180


$
121


$
145


$
533


$
700


 
 
 
 
 
 
 
 
 




 
Q1
 
Q2
 
Q3

Q4

Year-to-date
 
Mar 31, 2015
 
Jun 30, 2015
 
Sep 30, 2015

Dec 31, 2015

Dec 31, 2014

Dec 31, 2015

Dec 31, 2014
Net earnings per diluted share attributable to Weyerhaeuser common shareholders
$
0.17

 
$
0.26

 
$
0.35


$
0.11


$
0.31


$
0.89


$
3.18

Restructuring, impairments and other charges
0.02

 
—

 
—


0.01


0.01


0.03


0.05

Gain on sale of non-strategic asset
—

 
—

 
—

 
—

 
—

 
—

 
(0.02
)
Gain on postretirement plan amendment
—

 
—

 
—

 
—

 
(0.05
)
 
—

 
(0.18
)
Plum Creek merger-related costs
—

 
—

 
—

 
0.03

 
—

 
0.03

 
—

Impairment charge recorded by equity method affiliate
—

 
—

 
—

 
0.12

 
—

 
0.12

 
—

Tax adjustments
—

 
—

 
—

 
(0.03
)
 
—

 
(0.03
)
 
—

Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items
0.19


0.26


0.35


0.24


0.27


1.04


3.03

Earnings from discontinued operations, net of income taxes
—

 
—
 
—
 
—
 
—
 
—
 
(1.78
)
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items
$
0.19


$
0.26


$
0.35

 
$
0.24

 
$
0.27

 
$
1.04

 
$
1.25


Selected Total Company Items

in millions
Q1
 
Q2
 
Q3

Q4

Year-to-date
 
Mar 31, 2015
 
Jun 30, 2015
 
Sep 30, 2015

Dec 31, 2015

Dec 31, 2014

Dec 31, 2015

Dec 31, 2014
Depreciation, depletion and amortization:
 
 
 
 











Cost of products sold
$
118

 
$
116

 
$
116

 
$
118

 
$
119

 
$
468

 
$
470

Selling, general and administrative expenses
5

 
2

 
2

 
2

 
6

 
11

 
23

Total depreciation, depletion and amortization
$
123

 
$
118

 
$
118


$
120


$
125


$
479


$
493


 
 
 
 
 



 






Pension and postretirement costs:
 
 
 
 
 










Pension and postretirement costs allocated to business segments
$
13

 
$
14

 
$
13


$
13


$
12


$
53


$
45

Pension and postretirement costs (credits) not allocated
(3
)
 
(3
)
 
(2
)

(3
)

(12
)

(11
)

(45
)
Total company pension and postretirement costs
$
10

 
$
11

 
$
11


$
10


$
—


$
42


$
—


 
 
 
 
 










Cash spent for capital expenditures
$
(89
)
 
$
(108
)
 
$
(112
)

$
(174
)

$
(124
)

$
(483
)
 
$
(391
)
 
 
 
 
 















Page 4 of 9


Weyerhaeuser Company
 
 
 
 
 
 
 
 
Timberlands Segment
 
Q4.2015 Analyst Package
 
 
 
 


 
 
 


 
Preliminary results (unaudited)
 
 
 
 











 
 
 
 









Segment Statement of Operations


 
 
 
 









in millions

Q1.2015
 
Q2.2015
 
Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014
Sales to unaffiliated customers
$
351

 
$
336

 
$
326

 
$
337

 
$
359

 
$
1,350

 
$
1,497

Intersegment sales
228

 
187

 
210

 
205

 
225

 
830

 
867

Total net sales
579

 
523

 
536

 
542

 
584

 
2,180

 
2,364

Cost of products sold
405

 
385

 
401

 
395

 
424

 
1,586

 
1,686

Gross margin
174

 
138

 
135

 
147

 
160

 
594

 
678

Selling expenses
2

 
1

 
1

 
1

 
1

 
5

 
7

General and administrative expenses
22

 
21

 
21

 
24

 
25

 
88

 
97

Research and development expenses
3

 
4

 
3

 
6

 
5

 
16

 
16

Charges for restructuring, closures and impairments
—

 
—

 
—

 
—

 
—

 
—

 
1

Other operating income, net
(15
)
 
(15
)
 
(16
)
 
(18
)
 
(14
)
 
(64
)
 
(56
)
Operating income
162

 
127

 
126

 
134

 
143

 
549

 
613

Interest income and other
—

 
—

 
—

 
—

 
—

 
—

 
—

Net contribution to earnings
$
162

 
$
127

 
$
126

 
$
134

 
$
143

 
$
549

 
$
613



 
 
 
 












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


 
 
 
 












in millions

Q1.2015
 
Q2.2015
 
Q3.2015

Q4.2015

Q4.2014
 
YTD.2015
 
YTD.2014
Operating income
$
162

 
$
127

 
$
126

 
$
134

 
$
143

 
$
549

 
$
613

Depreciation, depletion and amortization
53

 
51

 
51

 
54

 
53

 
209

 
207

Adjusted EBITDA*
$
215

 
$
178

 
$
177

 
$
188

 
$
196

 
$
758

 
$
820

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














 
 
 
 












Selected Segment Items


 
 
 
 












 

Q1.2015
 
Q2.2015
 
Q3.2015

Q4.2015

Q4.2014
 
YTD.2015
 
YTD.2014
Total decrease (increase) in working capital(1)
$
(26
)
 
$
52

 
$
(12
)
 
$
4

 
$
8

 
$
18

 
$
(11
)
Cash spent for capital expenditures
$
(24
)
 
$
(17
)
 
$
(17
)
 
$
(17
)
 
$
(18
)
 
$
(75
)
 
$
(74
)
(1) Working capital does not include cash balances.
 
 
 
 














 
 
 
 












Segment Statistics


 
 
 
 













Q1.2015
 
Q2.2015
 
Q3.2015

Q4.2015

Q4.2014
 
YTD.2015
 
YTD.2014
Third Party
Net Sales
(millions)
Logs:

 

 









West
$
210

 
$
221

 
$
196


$
203


$
227

 
$
830

 
$
972

South
58

 
58

 
64


61


66

 
241

 
257

Canada
8

 
3

 
6


7


10

 
24

 
22

Total logs
276

 
282

 
266

 
271

 
303

 
1,095

 
1,251

Chip sales
4

 
4

 
4


3


3

 
15

 
12

Timberlands exchanges
25

 
5

 
12


20


3

 
62

 
52

Higher and better use land sales
2

 
3

 
4


5


5

 
14

 
19

Minerals, oil and gas
7

 
5

 
7


7


7

 
26

 
32

Products from international operations
24

 
25

 
20


18


24

 
87

 
96

Other products
13

 
12

 
13


13


14

 
51

 
35

Total
$
351

 
$
336

 
$
326

 
$
337

 
$
359

 
$
1,350

 
$
1,497

Logs
Third Party Sales
Realizations
(per cubic meter)
West
$
98.83

 
$
94.70

 
$
93.44


$
96.16


$
106.73

 
$
95.76

 
$
108.19

South
$
45.33

 
$
45.20

 
$
45.96


$
45.07


$
45.56

 
$
45.40

 
$
45.23

Canada
$
34.84

 
$
35.43

 
$
35.50


$
34.54


$
38.82

 
$
34.97

 
$
37.58

International
$
19.35

 
$
22.63

 
$
18.71


$
18.31


$
18.64

 
$
19.85

 
$
18.06

Logs
Third Party Sales
Volumes
(cubic meters, thousands)
West
2,120

 
2,330

 
2,104


2,118


2,121

 
8,672

 
8,980

South
1,271

 
1,295

 
1,396


1,338


1,454

 
5,300

 
5,678

Canada
245

 
75

 
159


208


254

 
687

 
592

International
150

 
179

 
175


144


148

 
648

 
604

Total
3,786

 
3,879

 
3,834

 
3,808

 
3,977

 
15,307

 
15,854

Logs
Fee Harvest Volumes
(cubic meters, thousands)
West
2,911

 
2,811

 
2,666


2,742


2,754

 
11,130

 
11,173

South
2,732

 
2,912

 
3,008


2,916


3,145

 
11,568

 
11,676

International
239

 
219

 
200


231


260

 
889

 
990

Total
5,882

 
5,942

 
5,874

 
5,889

 
6,159

 
23,587

 
23,839


Page 5 of 9


Weyerhaeuser Company
 
 
 
 
 
 
 
 
Wood Products Segment
 
Q4.2015 Analyst Package
 
 
 
 


 
 
 
 

 
Preliminary results (unaudited)
 
 
 
 











 
 
 
 









Segment Statement of Operations  


 
 
 
 









in millions

Q1.2015
 
Q2.2015
 
Q3.2015
 
Q4.2015
 
Q4.2014
 
YTD.2015
 
YTD.2014
Sales to unaffiliated customers
$
923

 
$
1,004

 
$
1,023


$
922


$
947

 
$
3,872

 
$
3,970

Intersegment sales
19

 
22

 
20


21


20

 
82

 
80

Total net sales
942

 
1,026

 
1,043


943


967

 
3,954

 
4,050

Cost of products sold
829

 
903

 
914


841


855

 
3,487

 
3,495

Gross margin
113

 
123

 
129


102


112

 
467

 
555

Selling expenses
23

 
23

 
23


25


24

 
94

 
94

General and administrative expenses
27

 
26

 
21


28


32

 
102

 
130

Research and development expenses
—

 
1

 
1


—


1

 
2

 
4

Charges for restructuring, closures and impairments
—

 
—

 
1


9


—

 
10

 
2

Other operating income, net
1

 
2

 
(2
)

—


(1
)
 
1

 
(2
)
Operating income
62


71


85


40


56


258


327

Interest income and other
—

 
—

 
—


—


—

 
—

 
—

Net contribution to earnings
$
62

 
$
71

 
$
85


$
40


$
56

 
$
258

 
$
327



 
 
 
 












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


 
 
 
 












in millions

Q1.2015
 
Q2.2015
 
Q3.2015
 
Q4.2015
 
Q4.2014
 
YTD.2015
 
YTD.2014
Operating income
$
62

 
$
71

 
$
85

 
$
40

 
$
56

 
$
258

 
$
327

Depreciation, depletion and amortization
26

 
27

 
26


27


30

 
106

 
119

Special items
—

 
—

 
—


8


—


8


—

Adjusted EBITDA*
$
88

 
$
98

 
$
111

 
$
75

 
$
86

 
$
372

 
$
446

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














 
 
 
 












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


 
 
 
 












 

Q1.2015
 
Q2.2015
 
Q3.2015
 
Q4.2015
 
Q4.2014
 
YTD.2015
 
YTD.2014
Restructuring, impairments and other charges
$
—

 
$
—

 
$
—


$
(8
)

$
—


$
(8
)

$
—



 
 
 
 












Selected Segment Items


 
 
 
 












 

Q1.2015
 
Q2.2015
 
Q3.2015
 
Q4.2015
 
Q4.2014
 
YTD.2015
 
YTD.2014
Total decrease (increase) in working capital(1)
$
(99
)
 
$
42

 
$
23

 
$
79

 
$
29

 
$
45

 
$
(38
)
Cash spent for capital expenditures
$
(37
)
 
$
(60
)
 
$
(68
)
 
$
(122
)
 
$
(78
)
 
$
(287
)
 
$
(190
)
(1) Working capital does not include cash balances.
 
 
 
 














 
 
 
 












Segment Statistics


 
 
 
 












in millions, except for third-party sales realizations
Q1.2015
 
Q2.2015
 
Q3.2015
 
Q4.2015
 
Q4.2014
 
YTD.2015
 
YTD.2014
Structural Lumber
(board feet)
Third party net sales
$
434

 
$
450

 
$
455

 
$
402

 
$
459

 
$
1,741

 
$
1,901

Third party sales realizations
$
403

 
$
383

 
$
372

 
$
360

 
$
415

 
$
379

 
$
426

Third party sales volumes(1)
1,075

 
1,175

 
1,224

 
1,114

 
1,106

 
4,588

 
4,463

Production volumes
1,043

 
1,087

 
1,087

 
1,035

 
1,013

 
4,252

 
4,152

Outside purchase volumes
89

 
98

 
92

 
77

 
94

 
356

 
345

Engineered Solid
Section
(cubic feet)
Third party net sales
$
94

 
$
113

 
$
116

 
$
105

 
$
94

 
$
428

 
$
402

Third party sales realizations
$
1,965

 
$
2,032

 
$
2,043

 
$
1,987

 
$
2,060

 
$
2,008

 
$
2,005

Third party sales volumes(1)
4.8

 
5.6

 
5.6

 
5.3

 
4.5

 
21.3

 
20.0

Production volumes
5

 
5.6

 
5.2

 
5.1

 
4.6

 
20.9

 
20.4

Outside purchase volumes
—

 
—

 
—

 
—

 
—

 
—

 
2.3

Engineered
I-joists
(lineal feet)
Third party net sales
$
61

 
$
76

 
$
79

 
$
68

 
$
63

 
$
284

 
$
277

Third party sales realizations
$
1,510

 
$
1,502

 
$
1,520

 
$
1,515

 
$
1,549

 
$
1,512

 
$
1,502

Third party sales volumes(1)
41

 
50

 
52

 
45

 
40

 
188

 
184

Production volumes
43

 
48

 
50

 
44

 
33

 
185

 
182

Outside purchase volumes
1

 
1

 
2

 
1

 
2

 
5

 
7

Oriented Strand
Board
(square feet 3/8')
Third party net sales
$
137

 
$
147

 
$
151

 
$
160

 
$
146

 
$
595

 
$
610

Third party sales realizations
$
196

 
$
191

 
$
194

 
$
221

 
$
206

 
$
200

 
$
219

Third party sales volumes(1)
700

 
771

 
778

 
723

 
709

 
2,972

 
2,788

Production volumes
704

 
700

 
746

 
697

 
694

 
2,847

 
2,749

Outside purchase volumes
65

 
82

 
77

 
55

 
61

 
278

 
217

Softwood Plywood
(square feet 3/8')
Third party net sales
$
33

 
$
36

 
$
33

 
$
27

 
$
36

 
$
129

 
$
143

Third party sales realizations
$
366

 
$
354

 
$
330

 
$
308

 
$
384

 
$
339

 
$
362

Third party sales volumes(1)
89

 
101

 
100

 
91

 
93

 
381

 
395

Production volumes
61

 
63

 
67

 
57

 
61

 
248

 
252

Outside purchase volumes
37

 
27

 
27

 
25

 
42

 
116

 
142

(1) 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
 
Q4.2015 Analyst Package
 
 
 
 


 
 
 
 

 
Preliminary results (unaudited)
 
 
 
 











 
 
 
 









Segment Statement of Operations


 
 
 
 









in millions

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014
 
YTD.2015
 
YTD.2014
Total net sales
$
447


$
467


$
471


$
475


$
482

 
$
1,860

 
$
1,936

Cost of products sold
394


417


371


393


379

 
1,575

 
1,577

Gross margin
53


50


100


82


103

 
285

 
359

Selling expenses
3


4


3


4


4

 
14

 
15

General and administrative expenses
17


17


16


17


18

 
67

 
76

Research and development expenses
2


1


2


1


2

 
6

 
7

Charges for restructuring, closures and impairments
—

 
—

 
—

 
—

 
—

 
—

 
—

Other operating income, net
(8
)

(6
)

(5
)

(7
)

(8
)
 
(26
)
 
(31
)
Operating income
39


34


84


67


87

 
224

 
292

Loss from equity affiliates(1)
(6
)
 
(7
)
 
(5
)
 
(87
)
 
—

 
(105
)
 
(1
)
Net contribution to earnings
$
33


$
27


$
79


$
(20
)

$
87

 
$
119

 
$
291

(1) Loss from equity affiliates in Q4 2015 includes an $84 million non-cash charge for our share of an asset impairment recorded by an equity affiliate.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*


 
 
 
 












in millions

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014
 
YTD.2015
 
YTD.2014
Operating income
 
$
39


$
34


$
84


$
67


$
87

 
$
224

 
$
292

Depreciation, depletion and amortization
39


38


39


38


39

 
154

 
155

Adjusted EBITDA*
$
78


$
72


$
123


$
105


$
126


$
378


$
447

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














 
 
 
 












Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Q1.2015
 
Q2.2015
 
Q3.2015
 
Q4.2015
 
Q4.2014
 
YTD.2015
 
YTD.2014
Impairment charge recorded by equity method affiliate
$
—

 
$
—

 
$
—

 
$
(84
)
 
$
—

 
$
(84
)
 
$
—

 
Selected Segment Items


















 

Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014
 
YTD.2015
 
YTD.2014
Total decrease (increase) in working capital(1)
$
40


$
6


$
(24
)

$
(13
)

$
(47
)
 
$
9

 
$
(14
)
Cash spent for capital expenditures
$
(27
)

$
(31
)

$
(27
)

$
(33
)

$
(26
)
 
$
(118
)
 
$
(123
)
(1) Working capital does not include cash balances.
 
 
 
 














 
 
 
 









Segment Statistics


 
 
 
 














Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014
 
YTD.2015
 
YTD.2014
Pulp
(air-dry metric tons)
Third party net sales (millions)
$
360


$
368


$
383


$
388


$
405

 
$
1,499

 
$
1,559

Third party sales realizations
$
854


$
823


$
818


$
800


$
886

 
$
823

 
$
854

Third party sales volumes (thousands)
421


448


468


484


458

 
1,821

 
1,826

Production volumes (thousands)
442


422


477


481


468

 
1,822

 
1,859

Liquid
Packaging
Board
(metric tons)
Third party net sales (millions)
$
74


$
84


$
74


$
73


$
63

 
$
305

 
$
310

Third party sales realizations
$
1,194


$
1,218


$
1,168


$
1,203


$
1,133

 
$
1,196

 
$
1,244

Third party sales volumes (thousands)
62


69


63


61


55

 
255

 
249

Production volumes (thousands)
60


64


68


63


70

 
255

 
265



Page 7 of 9


Weyerhaeuser Company
 
 
 
 
 
 
 
 
Unallocated Items
 
Q4.2015 Analyst Package
 
 
 
 


 
 
 
 

 
Preliminary results (unaudited)
 
 
 
 










 
 
 
 









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
Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014
 
YTD.2015
 
YTD.2014
Unallocated corporate function expenses
$
(9
)
 
$
(7
)
 
$
(4
)

$
(7
)

$
(7
)
 
$
(27
)
 
$
(24
)
Unallocated share-based compensation
3

 
1

 
6


(4
)

(7
)
 
6

 
(9
)
Unallocated pension & postretirement credits (costs)
3

 
3

 
2


3


50

 
11

 
196

Foreign exchange gains (losses)
(29
)
 
9

 
(20
)

(6
)

(11
)
 
(46
)
 
(27
)
Elimination of intersegment profit in inventory and LIFO
(12
)
 
18

 
3


1


(2
)
 
10

 
(10
)
Other
(19
)
 
(13
)
 
(23
)

(11
)

(15
)
 
(66
)
 
(38
)
Operating income (loss)
(63
)
 
11

 
(36
)

(24
)

8

 
(112
)
 
88

Interest income and other
9

 
9

 
9


9


10

 
36

 
38

Net contribution to earnings from continuing operations(1)
$
(54
)
 
$
20

 
$
(27
)

$
(15
)

$
18

 
$
(76
)
 
$
126

(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
Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014
 
YTD.2015
 
YTD.2014
Operating income (loss)
$
(63
)
 
$
11

 
$
(36
)
 
$
(24
)
 
$
8

 
$
(112
)
 
$
88

Depreciation, depletion and amortization
5

 
2

 
2


1


3

 
10

 
12

Non-operating pension and postretirement costs (credits)
(3
)
 
(3
)
 
(2
)

(3
)

(12
)
 
(11
)
 
(45
)
Special items
13

 
—

 
—


14


(31
)
 
27

 
(134
)
Adjusted EBITDA*
$
(48
)
 
$
10

 
$
(36
)

$
(12
)

$
(32
)

$
(86
)

$
(79
)
* Non-GAAP measure - see below for definition.
 
 
 
 










 
 
 
 









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

 
 
 
 









 
Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014
 
YTD.2015
 
YTD.2014
Restructuring, impairments and other charges
$
(13
)

$
—


$
—


$
—


$
(7
)
 
$
(13
)
 
$
(39
)
Gain on sale of non-strategic asset
—


—


—


—


—

 
—

 
22

Gain on postretirement plan amendment
—


—


—


—


38

 
—

 
151

Plum Creek merger-related costs
—

 
—

 
—

 
(14
)
 
—

 
(14
)
 
—

Total
$
(13
)

$
—


$
—


$
(14
)

$
31


$
(27
)

$
134


 
 
 
 









Unallocated Selected Items

 
 
 
 









 
Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014
 
YTD.2015
 
YTD.2014
Cash spent for capital expenditures
$
(1
)

$
—


$
—


$
(2
)

$
(2
)
 
$
(3
)
 
$
(4
)

 
 
 
 









*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
 
Q4.2015 Analyst Package
 
 
 
 


 
 
 
 

 
Preliminary results (unaudited)
 
 
 
 










 
 
 
 









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
Q1.2015

Q2.2015

Q3.2015

Q4.2015

Q4.2014

YTD.2015

YTD.2014
Total net sales
$
—


$
—


$
—


$
—


$
—

 
$
—

 
$
573

Income (loss) from operations
$
—


$
—


$
—


$
—


$
—

 
$
—

 
$
42

Income taxes
—


—


—


—


—

 
—

 
(16
)
Net earnings (loss) from operations
—


—


—


—


—

 
—

 
26

Net gain on divestiture
—


—


—


—


—

 
—

 
972

Net earnings from discontinued operations
$
—


$
—


$
—


$
—


$
—

 
$
—

 
$
998



Page 9 of 9