BUSINESS SEGMENTS

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

BUSINESS SEGMENTS

NOTE 2: BUSINESS SEGMENTS

We are principally engaged in growing and harvesting timber; manufacturing, distributing and selling products made from trees; maximizing the value of our acreage through the sale of higher and better use (HBU) properties; and monetizing the value of surface and subsurface assets through leases and royalties. Our business segments are organized based primarily on products and services which include:

●Timberlands – Logs, timber, recreational leases and other products;

●Real Estate, Energy and Natural Resources (Real Estate & ENR) – Real Estate (sales of timberlands) and ENR (rights to explore for and extract hard minerals, construction materials, natural gas production, and wind and solar); and

●Wood Products – Structural lumber, oriented strand board, engineered wood products and building materials distribution.

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 2023			JUNE 2022			JUNE 2023			JUNE 2022
Sales to unaffiliated customers:
Timberlands	$	417		$	515		$	879		$	980
Real Estate & ENR		80			117			181			245
Wood Products		1,500			2,341			2,818			4,860
		1,997			2,973			3,878			6,085
Intersegment sales:
Timberlands		150			156			292			317
Total sales		2,147			3,129			4,170			6,402
Intersegment eliminations		(150	)		(156	)		(292	)		(317	)
Total	$	1,997		$	2,973		$	3,878		$	6,085
Net contribution (charge) to earnings:
Timberlands	$	104		$	153		$	224		$	335
Real Estate & ENR		52			65			105			146
Wood Products		218			863			313			2,045
		374			1,081			642			2,526
Unallocated items(1)		(49	)		(44	)		(78	)		(161	)
Net contribution to earnings		325			1,037			564			2,365
Interest expense, net of capitalized interest		(70	)		(65	)		(136	)		(137	)
Loss on debt extinguishment		—			—			—			(276	)
Earnings before income taxes		255			972			428			1,952
Income taxes		(25	)		(184	)		(47	)		(393	)
Net earnings	$	230		$	788		$	381		$	1,559

(1)Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.