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BUSINESS SEGMENTS
 12 Months Ended
Dec. 31, 2018
BUSINESS SEGMENTS
BUSINESS SEGMENTS
Our business segments and how we account for those segments are discussed in Note 1: Summary of Significant Accounting Policies. This note provides key financial data by business segment.

KEY FINANCIAL DATA BY BUSINESS SEGMENT
Sales and Contribution (Charge) to Earnings
DOLLAR AMOUNTS IN MILLIONS
  
TIMBERLANDS

REAL ESTATE
& ENR

WOOD
PRODUCTS

UNALLOCATED ITEMS(1) AND INTERSEGMENT ELIMINATIONS

CONSOLIDATED

Sales to unaffiliated customers
2018
$
1,915

$
306

$
5,255

$
—

$
7,476

2017
$
1,942

$
280

$
4,974

$
—

$
7,196

2016
$
1,805

$
226

$
4,334

$
—

$
6,365

Intersegment sales
2018
$
802

$
1

$
—

$
(803
)
$
—

2017
$
762

$
1

$
—

$
(763
)
$
—

2016
$
840

$
1

$
68

$
(909
)
$
—

Contribution (charge) to earnings from continuing operations
2018
$
583

$
127

$
838

$
(366
)
$
1,182

2017
$
532

$
146

$
569

$
(138
)
$
1,109

2016
$
499

$
55

$
512

$
(131
)
$
935

(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 expense, pension and postretirement costs, foreign exchange transaction gains and losses, interest income and other, and the elimination of intersegment profit in inventory and LIFO.


Management evaluates segment performance based on the contributions to earnings of the respective segments. An analysis and reconciliation of our business segment information to the consolidated financial statements follows:
Reconciliation of Contribution to Earnings to Net Earnings
DOLLAR AMOUNTS IN MILLIONS
  
2018

2017

2016

Net contribution to earnings from continuing operations
$
1,182

$
1,109

$
935

Net contribution to earnings from discontinued operations
—

—

957

Total contribution to earnings
1,182

1,109

1,892

Interest expense, net of capitalized interest(1)
(375
)
(393
)
(436
)
Income before income taxes(1)
807

716

1,456

Income taxes(1)
(59
)
(134
)
(429
)
Net earnings
$
748

$
582

$
1,027

(1) Results shown for 2016 include amounts for both continuing and discontinued operations. Refer to Note 4: Discontinued Operations and Other Divestitures for further information.

 
Additional Financial Information
DOLLAR AMOUNTS IN MILLIONS
  
TIMBERLANDS

REAL ESTATE & ENR

WOOD PRODUCTS

UNALLOCATED
ITEMS

CONSOLIDATED

Depreciation, depletion and amortization
2018
$
319

$
14

$
149

$
4

$
486

2017
$
356

$
15

$
145

$
5

$
521

2016
$
366

$
13

$
129

$
4

$
512

Charges for integration and restructuring, closures and asset impairments(1)
2018
$
—

$
—

$
2

$
—

$
2

2017
$
147

$
—

$
13

$
34

$
194

2016
$
—

$
15

$
7

$
148

$
170

Capital expenditures
2018
$
117

$
—

$
306

$
4

$
427

2017
$
115

$
2

$
299

$
3

$
419

2016
$
116

$
1

$
297

$
11

$
425



Total Assets
DOLLAR AMOUNTS IN MILLIONS
 
TIMBERLANDS and
REAL ESTATE & ENR(1)

WOOD
PRODUCTS

UNALLOCATED
ITEMS

CONSOLIDATED

Total assets
2018
$
13,838

$
2,234

$
1,177

$
17,249

2017
$
14,122

$
2,145

$
1,792

$
18,059

(1) Assets attributable to the Real Estate & ENR business segment are combined with total assets for the Timberlands segment as we do not produce separate balance sheets internally.

DISCONTINUED OPERATIONS
During 2016, we disposed of our former Cellulose Fibers segment, which is excluded from the segment results above unless otherwise noted. See Note 4: Discontinued Operations and Other Divestitures for information regarding our discontinued operations and the segments affected.