BUSINESS SEGMENTS

3 Months Ended

Mar. 31, 2020

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 every acre we own 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 categorized based primarily on products and services which include:

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

● Real Estate & ENR – Real Estate (sales of timberlands) and ENR (rights to explore for and extract hard minerals, construction materials, oil and gas production, 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
DOLLAR AMOUNTS IN MILLIONS	MARCH 2020			MARCH 2019
Sales to unaffiliated customers:
Timberlands	$	381		$	431
Real Estate & ENR		112			118
Wood Products		1,235			1,094
		1,728			1,643
Intersegment sales:
Timberlands		122			125
Total sales		1,850			1,768
Intersegment eliminations		(122	)		(125	)
Total	$	1,728		$	1,643
Net contribution (charge) to earnings:
Timberlands	$	105		$	120
Real Estate & ENR		36			55
Wood Products		134			69
		275			244
Unallocated items(1)		(43	)		(530	)
Net contribution (charge) to earnings		232			(286	)
Interest expense, net of capitalized interest		(85	)		(107	)
Earnings (loss) before income taxes		147			(393	)
Income taxes		3			104
Net earnings (loss)	$	150		$	(289	)

(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 postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.