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BUSINESS SEGMENTS (Tables)
 6 Months Ended
Jun. 30, 2018
A Reconciliation of Revenue from Segments to Consolidated

A reconciliation of our business segment information to the respective information in the Consolidated Statement of Operations is as follows:
 
QUARTER ENDED
 
YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS
JUNE 2018
 
JUNE 2017
 
JUNE 2018
 
JUNE 2017
Sales to unaffiliated customers:
 
 
 
 
 
 
 
Timberlands
$
482

 
$
469

 
$
987

 
$
955

Real Estate & ENR
58

 
46

 
109

 
99

Wood Products
1,525

 
1,293

 
2,834

 
2,447

 
2,065

 
1,808

 
3,930

 
3,501

Intersegment sales:
 
 
 
 
 
 
 
Timberlands
185

 
163

 
413

 
365

 
 
 
 
 


 


Total sales
2,250

 
1,971

 
4,343

 
3,866

Intersegment eliminations
(185
)
 
(163
)
 
(413
)
 
(365
)
Total
$
2,065

 
$
1,808

 
$
3,930

 
$
3,501

Net contribution to earnings:
 
 
 
 
 
 
 
Timberlands(1) 
$
161

 
$
(12
)
 
$
350

 
$
136

Real Estate & ENR
22

 
23

 
47

 
49

Wood Products(2)
329

 
177

 
599

 
349

 
512

 
188

 
996

 
534

Unallocated items(3)
(38
)
 
(30
)
 
(130
)
 
(96
)
Net contribution to earnings
474

 
158

 
866

 
438

Interest expense, net of capitalized interest
(92
)
 
(100
)
 
(185
)
 
(199
)
Earnings before income taxes
382

 
58

 
681

 
239

Income taxes
(65
)
 
(34
)
 
(95
)
 
(58
)
Net earnings
$
317

 
$
24

 
$
586

 
$
181



(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, as announced during June 2017. Refer to Note 15: Charges for Integration and Restructuring, Closures and Asset Impairments.
(2)
Net contribution to earnings for the Wood Products segment includes a $20 million and $5 million recovery recorded during first quarter 2018 and second quarter 2018, respectively, and a $25 million and $50 million charge recorded during second quarter 2018 and second quarter 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 (Recoveries) for Product Remediation, Net for additional details.
(3)
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 expenses, pension and postretirement costs, foreign exchange transaction gains and losses and the elimination of intersegment profit in inventory and LIFO.