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BUSINESS SEGMENTS (Tables)
 9 Months Ended
Sep. 30, 2017
Reconciliation of Revenue from Segments to Consolidated
An analysis and reconciliation of our business segment information to the respective information in the Consolidated Statements of Operations is as follows:
 
QUARTER ENDED
 
YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS
SEPTEMBER 2017
 
SEPTEMBER 2016
 
SEPTEMBER 2017
 
SEPTEMBER 2016
Sales to unaffiliated customers:
 
 
 
 
 
 
 
Timberlands
$
491

 
$
484

 
$
1,446

 
$
1,342

Real Estate & ENR
82

 
48

 
181

 
125

Wood Products
1,299

 
1,177

 
3,746

 
3,302

 
1,872

 
1,709

 
5,373

 
4,769

Intersegment sales:
 
 
 
 
 
 
 
Timberlands
179

 
216

 
544

 
631

Wood Products
—

 
17

 
—

 
61

 
179

 
233

 
544

 
692

Total sales
2,051

 
1,942

 
5,917

 
5,461

Intersegment eliminations
(179
)
 
(233
)
 
(544
)
 
(692
)
Total
$
1,872

 
$
1,709

 
$
5,373

 
$
4,769

Net contribution to earnings:
 
 
 
 
 
 
 
Timberlands (1)
$
131

 
$
122

 
$
267

 
$
376

Real Estate & ENR(2)
47

 
15

 
96

 
42

Wood Products (3)
40

 
170

 
389

 
413

 
218

 
307

 
752

 
831

Unallocated items(4)
(17
)
 
(9
)
 
(113
)
 
(91
)
Net contribution to earnings
201

 
298

 
639

 
740

Interest expense, net of capitalized interest
(98
)
 
(114
)
 
(297
)
 
(323
)
Earnings from continuing operations before income taxes
103

 
184

 
342

 
417

Income taxes
27

 
(22
)
 
(31
)
 
(64
)
Earnings from continuing operations
130

 
162

 
311

 
353

Earnings from discontinued operations, net of income taxes (5)
—

 
65

 
—

 
123

Net earnings
130

 
227

 
311

 
476

Dividends on preference shares
—

 
—

 
—

 
(22
)
Net earnings attributable to Weyerhaeuser common shareholders
$
130

 
$
227

 
$
311

 
$
454



(1)
Net contribution to earnings for the Timberlands segment includes a noncash pretax impairment charge of $147 million, recorded during second quarter 2017. This impairment was a result of our agreement to sell our Uruguayan operations, which was announced in June 2017 and completed on September 1, 2017. Refer to Note 3: Discontinued Operations and Other Divestitures for more information regarding this transaction.
(2)
The Real Estate & ENR segment includes the equity earnings from, investments in and advances to our Real Estate Development Ventures (as defined and described in Note 7: Related Parties), which are accounted for under the equity method.
(3)
Net contribution to earnings for the Wood Products segment includes pretax charges of $190 million and $240 million incurred in the quarter and year-to-date period ended September 30, 2017, respectively, to accrue for estimated costs to remediate an issue with certain I-joists coated with our Flak Jacket® Protection product. Refer to Note 16: Charges for Product Remediation for additional details.
(4)
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. Additionally, amounts shown for 2016 include equity earnings from our former Timberland Venture. As of August 31, 2016, the Timberland Venture became a fully consolidated, wholly-owned subsidiary and therefore eliminated our equity method investment at that time.
(5)
Discontinued operations as presented herein consist of the operations of our former Cellulose Fibers segment. Refer to Note 3: Discontinued Operations and Other Divestitures for more information regarding our discontinued operations.