BUSINESS SEGMENTS

9 Months Ended

Sep. 30, 2022

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, 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, and wind and solar resources) 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	SEPTEMBER 2022			SEPTEMBER 2021			SEPTEMBER 2022			SEPTEMBER 2021
Sales to unaffiliated customers:
Timberlands	$	441		$	423		$	1,421		$	1,207
Real Estate & ENR		68			69			313			285
Wood Products		1,767			1,853			6,627			6,503
		2,276			2,345			8,361			7,995
Intersegment sales:
Timberlands		133			129			450			399
Total sales		2,409			2,474			8,811			8,394
Intersegment eliminations		(133	)		(129	)		(450	)		(399	)
Total	$	2,276		$	2,345		$	8,361		$	7,995
Net contribution (charge) to earnings:
Timberlands	$	107		$	133		$	442		$	354
Real Estate & ENR		48			45			194			174
Wood Products		344			517			2,389			2,695
		499			695			3,025			3,223
Unallocated items(1)		(45	)		(50	)		(206	)		(199	)
Net contribution to earnings		454			645			2,819			3,024
Interest expense, net of capitalized interest		(67	)		(79	)		(204	)		(236	)
Loss on debt extinguishment		—			—			(276	)		—
Earnings before income taxes		387			566			2,339			2,788
Income taxes		(77	)		(84	)		(470	)		(597	)
Net earnings	$	310		$	482		$	1,869		$	2,191

(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.