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Weyerhaeuser reports fourth quarter, full year results

-- Generated full year net earnings of $582 million or $0.77 per diluted share

-- Increased full year Adjusted EBITDA by 31% to $2.1 billion with improvements in all segments

-- Raised quarterly dividend

-- Completed sale of 100,000 acres of Southern timberlands for $202.5 million in the fourth quarter

Feb 2, 2018

SEATTLE, Feb. 2, 2018 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported fourth quarter net earnings of $271 million or 36 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings from continuing operations of $62 million, or 8 cents per diluted share, on net sales of $1.6 billion for the same period last year.

Weyerhaeuser Company logo. (PRNewsFoto/Weyerhaeuser Company)

Excluding a net after-tax benefit of $37 million from special items, the company reported net earnings of $234 million or 31 cents per diluted share. This compares with net earnings from continuing operations before special items of $106 million for the same period last year and $259 million for third quarter 2017.

For the full year 2017, Weyerhaeuser reported net earnings of $582 million, or 77 cents per diluted share, on net sales of $7.2 billion. This compares with net earnings from continuing operations of $415 million on net sales of $6.4 billion for the same period last year.

Full year 2017 includes net after-tax charges of $290 million from special items. Excluding these items, the company reported net earnings from continuing operations before special items of $872 million, or $1.15 per diluted share. This compares with net earnings from continuing operations before special items of $534 million for the full year 2016.

"2017 was a year of strong financial and operational performance for Weyerhaeuser. We increased Adjusted EBITDA by over 30 percent to $2.1 billion, generated over $1 billion of EBITDA from Wood Products, achieved all targets for operational excellence, merger cost synergies and overhead cost reduction, and raised our dividend," said Doyle R. Simons, president and chief executive officer. "We also further simplified and optimized our portfolio by divesting our Uruguay operations, exiting the Twin Creeks joint venture and selling 100,000 acres of Southern timberland for collective proceeds of over $700 million. Going forward, we expect continued growth in the U.S. housing market and we remain relentlessly focused on improving performance through operational excellence, fully capitalizing on strengthening market conditions, and driving value for shareholders through disciplined capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS

2017


2017


2016


2017


2016

(millions, except per share data)

Q3


Q4


Q4


Full Year

Net sales

$

1,872



$

1,823



$

1,596



$

7,196



$

6,365


Earnings from continuing operations

$

130



$

271



$

62



$

582



$

415


Net earnings attributable to Weyerhaeuser common shareholders

$

130



$

271



$

551



$

582



$

1,005


Earnings per diluted share from continuing operations

$

0.17



$

0.36



$

0.08



$

0.77



$

0.55


Net earnings per diluted share

$

0.17



$

0.36



$

0.73



$

0.77



$

1.39


Weighted average shares outstanding, diluted(1)

757



758



753



757



722


Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items(2)

$

259



$

234



$

106



$

872



$

534


Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items

$

0.34



$

0.31



$

0.14



$

1.15



$

0.75












Adjusted EBITDA(3)

$

569



$

551



$

400



$

2,080



$

1,583












(1) During 2016, Weyerhaeuser issued approximately 279 million common shares in connection with the Plum Creek merger, issued 23 million common shares to effect the conversion of its mandatory convertible preference shares, and repurchased approximately 68 million common shares under the company's repurchase authorization program put in place in connection with the Plum Creek merger transaction.

(2) Fourth quarter 2017 after-tax special items include a $99 million gain on the sale of Southern timberlands, charges of $52 million for tax adjustments including enactment of tax legislation, $31 million for product remediation, $26 million for environmental remediation insurance recoveries, $12 million for Plum Creek merger-related costs, and a $7 million net benefit from an adjustment to accrued countervailing and antidumping duties on softwood lumber. Full year 2017 includes $290 million of after-tax special charges, primarily for product remediation and impairment of Uruguay operations. Full year 2016 includes after-tax special charges of $141 million, primarily for Plum Creek merger-related costs. Full year 2016 results also include a $612 million gain on the sale of the company's Cellulose Fiber businesses which is presented as discontinued operations.

(3) Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations, adjusted for depreciation, depletion, amortization, basis in real estate sold, unallocated pension service costs and special items. Adjusted EBITDA excludes results from joint ventures. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. A reconciliation of Adjusted EBITDA to GAAP earnings is included with this release.

Weyerhaeuser merged with Plum Creek Timber Company, Inc. (Plum Creek) on February 19, 2016.  The financial statements presented within this release do not include Plum Creek financial results for any period prior to the February 19, 2016 merger date.

During 2016, Weyerhaeuser sold its Cellulose Fibers businesses. Results for the Cellulose Fibers segment are presented as discontinued operations.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)

3Q 2017


4Q 2017


Change

Net sales

$

670



$

714



$

44


Contribution to pre-tax earnings

$

131



$

265



$

134


Pre-tax benefit from special items

$



$

(99)



$

(99)


Contribution to pre-tax earnings before special items

$

131



$

166



$

35


Adjusted EBITDA

$

220



$

252



$

32


4Q 2017 Performance - In the West, fee harvest volumes increased and average realizations for domestic and export logs improved compared with the third quarter. In the South, fee harvest increased due to seasonally higher volumes and favorable weather, and average sales realizations were comparable to the prior quarter.

Fourth quarter includes a $99 million gain on the previously announced sale of 100,000 acres of Southern timberlands.

The company redeemed its ownership interest in the Twin Creeks Timber, LLC joint venture in October 2017. Fourth quarter results include no earnings contribution from operation of the joint venture.

1Q 2018 Outlook - Weyerhaeuser expects first quarter earnings before special items and Adjusted EBITDA to be comparable to the fourth quarter. In the West, the company anticipates improved average log sales realizations, partially offset by modestly lower fee harvest volumes. In the South, the company expects seasonally lower fee harvest volumes, comparable realizations, and higher trucking costs.

REAL ESTATE, ENERGY AND NATURAL RESOURCES

FINANCIAL HIGHLIGHTS (millions)

3Q 2017


4Q 2017


Change

Net sales

$

82



$

100



$

18


Contribution to pre-tax earnings

$

47



$

50



$

3


Adjusted EBITDA

$

74



$

87



$

13


4Q 2017 Performance - Earnings and Adjusted EBITDA increased compared with the third quarter due to seasonally higher Real Estate sales.

1Q 2018 Outlook - Weyerhaeuser anticipates significantly lower earnings and Adjusted EBITDA in the first quarter compared with the fourth quarter due to seasonally lower Real Estate sales and royalties from Energy & Natural Resources operations.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

3Q 2017


4Q 2017


Change

Net sales

$

1,299



$

1,228



$

(71)


Contribution to pre-tax earnings

$

40



$

180



$

140


Pre-tax charge for special items

$

201



$

41



$

(160)


Contribution to pre-tax earnings before special items

$

241



$

221



$

(20)


Adjusted EBITDA

$

278



$

258



$

(20)


4Q 2017 Performance - Average sales realizations for all products increased compared with the third quarter. Sales volumes declined due to seasonality and weather-related transportation disruptions. Canadian and Western log costs increased, and raw material costs for oriented strand board and engineered wood products were also higher.

Fourth quarter net pre-tax special charges of $41 million include $50 million for product remediation and a $9 million net benefit primarily from an adjustment to the periods covered and rates associated with the softwood lumber countervailing and antidumping duties.

1Q 2018 Outlook - Weyerhaeuser anticipates first quarter earnings before special items and Adjusted EBITDA from the Wood Products segment will be comparable to the fourth quarter. The company expects higher sales volumes, improved operating rates, and slightly higher lumber sales realizations, offset by lower average sales realizations for oriented strand board.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control 12.4 million acres of timberlands in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products. Our company is a real estate investment trust. In February 2016, we merged with Plum Creek Timber Company, Inc. In 2017, we generated $7.2 billion in net sales and employed approximately 9,300 people who serve customers worldwide. We are listed on the North American and World Dow Jones Sustainability Indices. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at www.weyerhaeuser.com.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on February 2, 2018 to discuss fourth quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on February 2, 2018.

To join the conference call from within North America, dial 855-223-0757 (access code: 3088989) at least 15 minutes prior to the call. Those calling from outside North America should dial 574-990-1206 (access code: 3088989). Replays will be available for two weeks at 855-859-2056 (access code: 3088989) from within North America and at 404-537-3406 (access code: 3088989) from outside North America.

FORWARD LOOKING STATEMENTS

This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including with respect to the following for the first quarter of 2018: earnings and Adjusted EBITDA for each of our business segments; log sale realizations and fee harvest volumes in our timber business; Wood Products sales volumes and realizations and operating rates; transportation costs; real estate sales volumes; and royalties from energy and natural resources operations. These statements generally are identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and expressions such as "will be," "will continue," "will likely result," and similar words and expressions. These statements are based on our current expectations and assumptions and are not guarantees of future performance.  The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:

  • the effect of general economic conditions, including employment rates, interest rate levels, housing starts, availability of financing for home mortgages and strength of the U.S. dollar;
  • market demand for our products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
  • changes in currency exchange rates, particularly the relative value of the U.S. dollar to the yen and the Canadian dollar, and the relative value of the euro to the yen;
  • restrictions on international trade, tariffs imposed on imports and the availability and cost of shipping and transportation;
  • economic activity in Asia, especially Japan and China;
  • performance of our manufacturing operations, including maintenance requirements;
  • potential disruptions in our manufacturing operations;
  • the level of competition from domestic and foreign producers;
  • raw material availability and prices;
  • the effect of weather;
  • the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
  • energy prices;
  • the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives;
  • the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals;
  • transportation and labor availability and costs;
  • federal tax policies;
  • the effect of forestry, land use, environmental and other governmental regulations;
  • legal proceedings;
  • performance of pension fund investments and related derivatives;
  • the effect of timing of retirements and changes in the market price of our common stock on charges for share-based compensation;
  • changes in accounting principles; and
  • other matters described under "Risk Factors" in our 2016 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements and other reports and filings with the Securities and Exchange Commission.

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

For more information contact:


Analysts - Beth Baum (206) 539-3907



Media - Anthony Chavez (206) 539-4406

 

RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS


We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income for the business segments, as those are the most directly comparable U.S. GAAP measures for each.

 

The table below reconciles Adjusted EBITDA for the year ended December 31, 2017:


DOLLAR AMOUNTS IN MILLIONS

Timberlands


Real Estate & ENR


Wood Products


Unallocated Items


Total

Adjusted EBITDA by Segment:










Net earnings









$

582


Earnings from discontinued operations, net of income taxes










Interest expense, net of capitalized interest









393


Income taxes









134


Net contribution to earnings

$

532



$

146



$

569



$

(138)



1,109


Equity (earnings) loss from joint ventures



(1)







(1)


Non-operating pension and other postretirement benefit (costs) credits







62



62


Interest income and other







(39)



(39)


Operating income

532



145



569



(115)



1,131


Depreciation, depletion and amortization

356



15



145



5



521


Basis of real estate sold



81







81


Unallocated pension service costs







4



4


Special items(1)(2)(3)

48





303



(8)



343


Adjusted EBITDA

$

936



$

241



$

1,017



$

(114)



$

2,080



(1) Pre-tax special items included in Timberlands consist of a $147 million non-cash impairment charge of the Uruguay operations and a $99 million gain on the sale of Southern timberlands.

(2) Pre-tax special items included in Wood Products consist of $290 million of product remediation charges, $7 million for countervailing and antidumping duties on softwood lumber, and a $6 million impairment on a non-strategic asset.

(3) Pre-tax special items included in Unallocated Items consist of $42 million for environmental remediation insurance recoveries and $34 million for Plum Creek merger-related costs.

 

The table below reconciles Adjusted EBITDA for the year ended December 31, 2016:


DOLLAR AMOUNTS IN MILLIONS

Timberlands


Real Estate & ENR


Wood Products


Unallocated Items


Total

Adjusted EBITDA by Segment:










Net earnings









$

1,027


Earnings from discontinued operations, net of income taxes









(612)


Interest expense, net of capitalized interest









431


Income taxes









89


Net contribution to earnings

$

499



$

55



$

512



$

(131)



$

935


Equity (earnings) loss from joint ventures



(2)





(20)



(22)


Non-operating pension and other postretirement benefit (costs) credits







(48)



(48)


Interest income and other







(43)



(43)


Operating income

499



53



512



(242)



822


Depreciation, depletion and amortization

366



13



129



4



512


Basis of real estate sold



109







109


Unallocated pension service costs







5



5


Special items(1)(2)



14





121



135


Adjusted EBITDA

$

865



$

189



$

641



$

(112)



$

1,583




(1) Pre-tax special items included in Real Estate & ENR relate to non-cash charges recorded for legacy real estate projects.

(2) Pre-tax special items included in Unallocated Items consist of:  $146 million Plum Creek merger-related costs, $36 million gain on sale of non strategic assets, and $11 million of legal expense.

 

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2017:


DOLLAR AMOUNTS IN MILLIONS

Timberlands


Real Estate & ENR


Wood Products


Unallocated Items


Total

Adjusted EBITDA by Segment:










Net earnings









$

271


Interest expense, net of capitalized interest









96


Income taxes









103


Net contribution to earnings

$

265



$

50



$

180



$

(25)



$

470


Non-operating pension and other postretirement benefit (costs) credits







16



16


Interest income and other







(10)



(10)


Operating income

265



50



180



(19)



476


Depreciation, depletion and amortization

86



4



37





127


Basis of real estate sold



33







33


Unallocated pension service costs







1



1


Special items(1)(2)(3)

(99)





41



(28)



(86)


Adjusted EBITDA

$

252



$

87



$

258



$

(46)



$

551



(1) Pre-tax special items included in Timberlands consist of a $99 million gain on the sale of Southern timberlands.

(2) Pre-tax special items included in Wood Products consist of $50 million of product remediation charges, partially offset by a $9 million benefit from an adjustment to accrued softwood lumber countervailing and antidumping duties.

(3) Pre-tax special items included in Unallocated Items consist of $42 million for environmental remediation insurance recoveries and $14 million for Plum Creek merger-related costs.

 

The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2017:


DOLLAR AMOUNTS IN MILLIONS

Timberlands


Real Estate & ENR


Wood Products


Unallocated Items


Total

Adjusted EBITDA by Segment:










Net earnings









$

130


Interest expense, net of capitalized interest









98


Income taxes









(27)


Net contribution to earnings

$

131



$

47



$

40



$

(17)



$

201


Equity (earnings) loss from joint ventures



(1)







(1)


Non-operating pension and other postretirement benefit (costs) credits







16



16


Interest income and other







(11)



(11)


Operating income

131



46



40



(12)



205


Depreciation, depletion and amortization

89



4



37



2



132


Basis of real estate sold



24







24


Unallocated pension service costs







1



1


Special items(1)(2)





201



6



207


Adjusted EBITDA

$

220



$

74



$

278



$

(3)



$

569



(1) Pre-tax special items included in Wood Products consist of $190 million of product remediation charges, a $6 million impairment on a non-strategic asset and $5 million of countervailing and anti-dumping duties on softwood lumber.

(2) Pre-tax special items included in Unallocated Items consist of $6 million of Plum Creek merger-related costs.

 

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2016:


DOLLAR AMOUNTS IN MILLIONS

Timberlands


Real Estate & ENR


Wood Products


Unallocated Items


Total

Adjusted EBITDA by Segment:










Net earnings









$

551


Earnings from discontinued operations, net of income taxes









(489)


Interest expense, net of capitalized interest









108


Income taxes









25


Net contribution to earnings

$

123



$

13



$

99



$

(40)



$

195


Equity (earnings) loss from joint ventures



(1)







(1)


Non-operating pension and other postretirement benefit (costs) credits







(11)



(11)


Interest income and other







(9)



(9)


Operating income

123



12



99



(60)



174


Depreciation, depletion and amortization

100



4



33





137


Basis of real estate sold



60







60


Unallocated pension service costs







1



1


Special items(1)(2)



14





14



28


Adjusted EBITDA

$

223



$

90



$

132



$

(45)



$

400



(1) Pre-tax special items included in Real Estate & ENR relate to non-cash charges recorded for legacy real estate projects.

(2) Pre-tax special items included in Unallocated items consist of $14 million of Plum Creek merger-related costs.

 

Weyerhaeuser Company








Exhibit 99.2


Q4.2017 Analyst Package










Preliminary results (unaudited)









Consolidated Statement of Operations (1)(2)

















in millions

Q1


Q2


Q3


Q4


Year-to-Date



Mar 31, 2017


Jun 30, 2017


Sep 30, 2017


Dec 31, 2017


Dec 31, 2016


Dec 31, 2017


Dec 31, 2016


Net sales

$

1,693



$

1,808



$

1,872



$

1,823



$

1,596



$

7,196



$

6,365



Cost of products sold

1,272



1,336



1,374



1,316



1,278



5,298



4,980



Gross margin

421



472



498



507



318



1,898



1,385



Selling expenses

22



22



22



21



22



87



89



General and administrative expenses

87



76



75



72



85



310



338



Research and development expenses

4



4



4



2



5



14



19



Charges for integration and restructuring, closures and asset impairments

13



151



14



16



29



194



170



Charges for product remediation



50



190



50





290





Other operating costs (income), net

2



12



(12)



(130)



3



(128)



(53)



Operating income from continuing operations

293



157



205



476



174



1,131



822



Equity earnings from joint ventures





1





1



1



22



Non-operating pension and other postretirement benefit (costs) credits

(22)



(8)



(16)



(16)



11



(62)



48



Interest income and other

9



9



11



10



9



39



43



Interest expense, net of capitalized interest

(99)



(100)



(98)



(96)



(108)



(393)



(431)



Earnings from continuing operations before income taxes

181



58



103



374



87



716



504



Income taxes

(24)



(34)



27



(103)



(25)



(134)



(89)



Earnings from continuing operations

157



24



130



271



62



582



415



Earnings (loss) from discontinued operations, net of income taxes









489





612



Net earnings

157



24



130



271



551



582



1,027



Dividends on preference shares













(22)



Net earnings attributable to Weyerhaeuser common shareholders

$

157



$

24



$

130



$

271



$

551



$

582



$

1,005


















(1) Discontinued operations, as presented herein, consist of the operations of our former Cellulose Fibers segment. The corresponding assets and liabilities were classified as discontinued operations on our balance sheet.


(2) Amounts presented reflect the results of operations acquired in our merger with Plum Creek Timber, Inc., beginning on the merger date of February 19, 2016.




Per Share Information





Q1


Q2


Q3


Q4


Year-to-Date



Mar 31, 2017


Jun 30, 2017


Sep 30, 2017


Dec 31, 2017


Dec 31, 2016


Dec 31, 2017


Dec 31, 2016


Earnings per share attributable to Weyerhaeuser common shareholders, basic:









Continuing operations

$

0.21



$

0.03



$

0.17



$

0.36



$

0.09



$

0.77



$

0.55



Discontinued operations









0.65





0.85



Net earnings per share

$

0.21



$

0.03



$

0.17



$

0.36



$

0.74



$

0.77



$

1.40


















Earnings per share attributable to Weyerhaeuser common shareholders, diluted:








Continuing operations

$

0.21



$

0.03



$

0.17



$

0.36



$

0.08



$

0.77



$

0.55



Discontinued operations









0.65





0.84



Net earnings per share

$

0.21



$

0.03



$

0.17



$

0.36



$

0.73



$

0.77



$

1.39


















Dividends paid per common share

$

0.31



$

0.31



$

0.31



$

0.32



$

0.31



$

1.25



$

1.24


















Weighted average shares outstanding (in thousands):










Basic

750,665



752,630



753,535



755,409



748,835



753,085



718,560



Diluted

754,747



756,451



756,903



758,463



752,768



756,666



722,401


















Common shares outstanding at end of period (in thousands)

751,411



752,711



753,051



755,223



748,528



755,223



748,528
















































Weyerhaeuser Company










Q4.2017 Analyst Package









Preliminary results (unaudited)












Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)*


in millions

Q1


Q2


Q3


Q4


Year-to-Date



Mar 31, 2017


Jun 30, 2017


Sep 30, 2017


Dec 31, 2017


Dec 31, 2016


Dec 31, 2017


Dec 31, 2016


Net earnings

$

157



$

24



$

130



$

271



$

551



$

582



$

1,027



Earnings from discontinued operations, net of income taxes









(489)





(612)



Equity earnings from joint ventures





(1)





(1)



(1)



(22)



Non-operating pension and other postretirement benefit costs (credits)

22



8



16



16



(11)



62



(48)



Interest income and other

(9)



(9)



(11)



(10)



(9)



(39)



(43)



Interest expense, net of capitalized interest

99



100



98



96



108



393



431



Income taxes

24



34



(27)



103



25



134



89



Operating income from continuing operations

293



157



205



476



174



1,131



822



Depreciation, depletion and amortization

133



129



132



127



137



521



512



Basis of real estate sold

14



10



24



33



60



81



109



Unallocated pension service costs

2





1



1



1



4



5



Special items

12



210



207



(86)



28



343



135



Adjusted EBITDA*

$

454



$

506



$

569



$

551



$

400



$

2,080



$

1,583


















*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs and special items. Adjusted EBITDA excludes results from joint ventures. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.

 

















Special Items Included in Net Earnings (income tax affected)

















in millions

Q1


Q2


Q3


Q4


Year-to-Date



Mar 31, 2017


Jun 30, 2017


Sep 30, 2017


Dec 31, 2017


Dec 31, 2016


Dec 31, 2017


Dec 31, 2016


Net earnings attributable to Weyerhaeuser common shareholders

$

157



$

24



$

130



$

271



$

551



$

582



$

1,005



Plum Creek merger and integration-related costs

10



2



3



12



11



27



123



Restructuring, impairments and other charges



147



4





9



151



9



Gain on sale of timberlands and other nonstrategic assets







(99)





(99)



(22)



Legal expense













7



Environmental remediation insurance recoveries







(26)





(26)





Product remediation



31



118



31





180





Countervailing and antidumping duties



8



4



(7)





5





Tax adjustments, including enactment of tax legislation







52



24



52



24



Net earnings attributable to Weyerhaeuser common shareholders before special items

167



212



259



234



595



872



1,146



(Earnings) loss from discontinued operations, net of tax









(489)





(612)



Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items

$

167



$

212



$

259



$

234



$

106



$

872



$

534



















Q1


Q2


Q3


Q4


Year-to-Date



Mar 31, 2017


Jun 30, 2017


Sep 30, 2017


Dec 31, 2017


Dec 31, 2016


Dec 31, 2017


Dec 31, 2016


Net earnings per diluted share attributable to Weyerhaeuser common shareholders

$

0.21



$

0.03



$

0.17



$

0.36



$

0.73



$

0.77



$

1.39



Plum Creek merger and integration-related costs

0.01







0.02



0.01



0.03



0.17



Restructuring, impairments and other charges



0.20



0.01





0.01



0.21



0.01



Gain on sale of timberlands and other nonstrategic assets







(0.14)





(0.14)



(0.03)



Legal expense













0.01



Environmental remediation insurance recoveries







(0.03)





(0.03)





Product remediation



0.04



0.15



0.04





0.23





Countervailing and antidumping duties



0.01



0.01



(0.01)





0.01





Tax adjustments, including enactment of tax legislation







0.07



0.04



0.07



0.04



Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items

0.22



0.28



0.34



0.31



0.79



1.15



1.59



(Earnings) loss from discontinued operations, net of tax









(0.65)





(0.84)



Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items

$

0.22



$

0.28



$

0.34



$

0.31



$

0.14



$

1.15



$

0.75



 


Weyerhaeuser Company







Q4.2017 Analyst Package






Preliminary results (unaudited)








Consolidated Balance Sheet











in millions

March 31,
 2017


June 30,
 2017


September 30,
 2017


December 31,
 2017


December 31,
 2016




ASSETS










Current assets:










Cash and cash equivalents

$

455



$

701



$

497



$

824



$

676


Receivables, less allowances

472



442



485



396



390


Receivables for taxes

10



8



65



14



84


Inventories

386



349



340



383



358


Prepaid expenses and other current assets

142



177



130



98



114


Assets held for sale



411








Total current assets

1,465



2,088



1,517



1,715



1,622


Property and equipment, net

1,544



1,534



1,534



1,618



1,562


Construction in progress

230



190



225



225



213


Timber and timberlands at cost, less depletion

14,218



13,669



13,627



12,954



14,299


Minerals and mineral rights, net

317



314



312



308



319


Investments in and advances to equity affiliates

56



33



33



31



56


Goodwill

40



40



40



40



40


Deferred tax assets

287



261



240



268



293


Other assets

229



246



259



285



224


Restricted financial investments held by variable interest entities

615



615



615



615



615


Total assets

$

19,001



$

18,990



$

18,402



$

18,059



$

19,243












LIABILITIES AND EQUITY










Current liabilities:










Current maturities of long-term debt

$

343



$

668



$

62



$

62



$

281


Current debt (nonrecourse to the company) held by variable interest entities







209




Accounts payable

227



252



259



249



233


Accrued liabilities

452



585



702



645



692


Liabilities held for sale



19








Total current liabilities

1,022



1,524



1,023



1,165



1,206


Long-term debt

6,263



5,936



5,933



5,930



6,329


Long-term debt (nonrecourse to the company) held by variable interest entities

511



511



511



302



511


Deferred pension and other postretirement benefits

1,287



1,230



1,201



1,487



1,322


Deposit received from contribution of timberlands to related party

422



419



416





426


Other liabilities

281



280



273



276



269


Total liabilities

9,786



9,900



9,357



9,160



10,063


Total equity

9,215



9,090



9,045



8,899



9,180


Total liabilities and equity

$

19,001



$

18,990



$

18,402



$

18,059



$

19,243


 

Weyerhaeuser Company









Q4.2017 Analyst Package








Preliminary results (unaudited)











Consolidated Statement of Cash Flows

in millions

Q1


Q2


Q3


Q4


Year-to-Date


Mar 31, 2017


Jun 30, 2017


Sep 30, 2017


Dec 31, 2017


Dec 31, 2016


Dec 31, 2017


Dec 31, 2016

Cash flows from operations:














Net earnings

$

157



$

24



$

130



$

271



$

551



$

582



$

1,027


Noncash charges (credits) to income:














Depreciation, depletion and amortization

133



129



132



127



137



521



565


Basis of real estate sold

14



10



24



33



60



81



109


Deferred income taxes, net

3



3



3



35



(255)



44



(159)


Pension and other postretirement benefits

32



15



25



25





97



5


Share-based compensation expense

10



9



10



11



7



40



60


Charges for impairment of assets



147



6



1



14



154



37


Equity (earnings) loss from joint ventures





(1)







(1)



(18)


Net gains on disposition of discontinued and other operations





(1)





(729)



(1)



(789)


Net gains on sale of nonstrategic assets

(7)



(2)



(5)



(2)



(12)



(16)



(73)


Net gains on sale of southern timberlands







(99)





(99)




Foreign exchange transaction (gains) losses

3





(3)



(1)



6



(1)



(5)


Change in:














Receivables less allowances

(70)



(8)



(35)



78



42



(35)



(54)


Receivable/payable for taxes

(36)



(17)



(63)



66



69



(50)



106


Inventories

(28)



21



11



(43)



12



(39)



61


Prepaid expenses

(9)



(4)



4



(3)



8



(12)



5


Accounts payable and accrued liabilities

(137)



192



129



(78)



(50)



106



11


Pension and postretirement contributions

(22)



(15)



(22)



(19)



(16)



(78)



(99)


Distributions of earnings received from joint ventures





1





9



1



14


Other

(8)



(15)



(22)



(48)



(4)



(93)



(68)


Net cash from (used in) operations

35



489



323



354



(151)



1,201



735
















Cash flows from investing activities:














Capital expenditures:














Purchases of property and equipment

(52)



(74)



(87)



(145)



(191)



(358)



(451)


Timberlands reforestation costs

(23)



(13)



(10)



(15)



(16)



(61)



(59)


Acquisition of timberlands













(10)


Proceeds from sales of operations and nonstrategic assets

8



4



411



6



2,211



429



2,590


Proceeds from sale of southern timberlands







203





203




Proceeds from redemption of ownership in related party







108





108




Proceeds from contribution of timberlands to related party













440


Distributions received from joint ventures



23





2





25



46


Other

(1)



22



(16)



16



(36)



21



3


Cash from (used in) investing activities

(68)



(38)



298



175



1,968



367



2,559
















Cash flows from financing activities:














Cash dividends on common shares

(233)



(233)



(233)



(242)



(232)



(941)



(932)


Cash dividends on preference shares













(22)


Proceeds from issuance of long-term debt





225







225



1,698


Payments on long-term debt





(831)





(1,700)



(831)



(2,423)


Proceeds from borrowing on line of credit





100







100




Payments on line of credit





(100)







(100)




Proceeds from exercise of stock options

55



26



8



39





128



61


Repurchase of common stock













(2,003)


Other

(10)



2



6



1



12



(1)



(9)


Cash from (used in) financing activities

(188)



(205)



(825)



(202)



(1,920)



(1,420)



(3,630)
















Net change in cash and cash equivalents

(221)



246



(204)



327



(103)



148



(336)
















Cash from continuing operations at beginning of period

$

676



$

455



$

701



$

497



$

769



$

676



$

1,011


Cash from discontinued operations at beginning of period









10





1


Cash and cash equivalents at beginning of period

$

676



$

455



$

701



$

497



$

779



$

676



$

1,012
















Cash from continuing operations at end of period

$

455



$

701



$

497



$

824



$

676



$

824



$

676


Cash from discontinued operations at end of period














Cash and cash equivalents at end of period

$

455



$

701



$

497



$

824



$

676



$

824



$

676
















Cash paid (received) during the year for:














Interest, net of amount capitalized

$

120



$

72



$

123



$

66



$

79



$

381



$

446


Income taxes

$

59



$

47



$

23



$

40



$

511



$

169



$

485


 

Weyerhaeuser Company






Total Company Statistics


Q4.2017 Analyst Package










Preliminary results (unaudited)












Selected Total Company Items




in millions

Q1


Q2


Q3


Q4


Year-to-Date



Mar 31,
2017


Jun 30,
2017


Sep 30, 2017


Dec 31,

2017


Dec 31,

2016


Dec 31,
2017


Dec 31,

2016


Pension and postretirement costs:















Pension and postretirement costs allocated to business segments

$

8



$

7



$

8



$

8



$

7



$

31



$

30



Pension and postretirement costs (credits) not allocated:















Unallocated pension service costs

2





1



1



1



4



5



Non-operating pension and other postretirement benefit costs (credits)

22



8



16



16



(11)



62



(48)



Accelerated pension costs included in Plum Creek merger-related costs (not allocated)













5



Total pension and postretirement costs for continuing operations

32



15



25



25



(3)



97



(8)



Pension and postretirement service costs directly attributable to discontinued operations









3





13



Total company pension and postretirement costs

$

32



$

15



$

25



$

25



$



$

97



$

5


















Cash spent for capital expenditures for continuing operations

$

(75)



$

(87)



$

(97)



$

(160)



$

(185)



$

(419)



$

(425)



 

Weyerhaeuser Company







Timberlands Segment

Q4.2017 Analyst Package










Preliminary results (unaudited)
























Segment Statement of Operations
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Sales to unaffiliated customers

$

486



$

469



$

491



$

496



$

463



$

1,942



$

1,805


Intersegment sales

202



163



179



218



209



762



840


Total net sales

688



632



670



714



672



2,704



2,645


Cost of products sold

519



476



517



531



527



2,043



2,054


Gross margin

169



156



153



183



145



661



591


Selling expenses

1



1



1



1



1



4



5


General and administrative expenses

24



23



24



19



24



90



104


Research and development expenses

3



4



3



2



5



12



17


Charges for integration and restructuring, closures and asset impairments



147









147




Other operating costs (income), net

(7)



(7)



(6)



(104)



(8)



(124)



(34)


Operating income and Net contribution to earnings

$

148



$

(12)



$

131



$

265



$

123



$

532



$

499

















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)*
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Operating income

$

148



$

(12)



$

131



$

265



$

123



$

532



$

499


Depreciation, depletion and amortization

94



87



89



86



100



356



366


Special items



147





(99)





48




Adjusted EBITDA*

$

242



$

222



$

220



$

252



$

223



$

936



$

865



* See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.
















Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Restructuring, impairments and other charges

$



$

(147)



$



$



$



$

(147)



$


Gain on sale of timberlands and other nonstrategic assets

$



$



$



$

99



$



$

99



$

















Selected Segment Items
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Total decrease (increase) in working capital(1)

$

(18)



$

38



$



$

(15)



$

(10)



$

5



$

7


Cash spent for capital expenditures

$

(30)



$

(25)



$

(24)



$

(36)



$

(39)



$

(115)



$

(116)


(1) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.
















Segment Statistics(2)(3)

















Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Third Party
Net Sales
(millions)

Logs:














West

$

225



$

227



$

221



$

242



$

201



$

915



$

865


South

148



148



155



165



151



616



566


North

27



16



25



27



30



95



91


Other

20



11



17



11



13



59



38


Total delivered logs

420



402



418



445



395



1,685



1,560


Stumpage and pay-as-cut timber

12



17



23



21



23



73



85


Products from international operations

19



21



23





21



63



79


Recreational and other lease revenue

14



15



16



14



15



59



44


Other revenue

21



14



11



16



9



62



37


Total

$

486



$

469



$

491



$

496



$

463



$

1,942



$

1,805


Delivered Logs
Third Party Sales
Realizations (per ton)

West

$

104.27



$

105.84



$

116.03



$

121.41



$

100.43



$

111.58



$

99.32


South

$

34.48



$

34.48



$

34.24



$

34.53



$

34.98



$

34.43



$

35.46


North

$

59.57



$

63.49



$

59.02



$

60.77



$

59.28



$

60.38



$

60.47


Delivered Logs
Third Party Sales
Volumes
(tons, thousands)

West

2,157



2,143



1,910



1,992



2,008



8,202



8,713


South

4,293



4,285



4,527



4,790



4,308



17,895



15,967


North

454



253



428



439



495



1,574



1,500


Other

510



292



424



232



342



1,458



943


Fee Harvest Volumes
(tons, thousands)

West

2,657



2,652



2,230



2,544



2,558



10,083



11,083


South

6,373



6,473



6,953



7,350



7,260



27,149



26,343


North

622



383



565



635



652



2,205



2,044


Other

371



444



569





329



1,384



701


(2) The Western region includes Washington and Oregon. The Southern region includes Virginia, North Carolina, South Carolina, Florida, Georgia, Alabama, Mississippi, Louisiana, Arkansas, Texas and Oklahoma. The Northern region includes West Virginia, Maine, New Hampshire, Vermont, Michigan, Wisconsin and Montana. Other includes our Canadian operations and managed Twin Creeks operations (our management agreement for the Twin Creeks Venture began in April 2016 and terminated in December 2017).

(3) Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.

 

 

Weyerhaeuser Company


Real Estate, Energy and Natural Resources Segment

Q4.2017 Analyst Package










Preliminary results (unaudited)























Segment Statement of Operations
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Sales to unaffiliated customers

$

53



$

46



$

82



$

99



$

101



$

280



$

226


Intersegment sales







1



1



1



1


Total net sales

53



46



82



100



102



281



227


Cost of products sold

20



16



31



43



69



110



134


Gross margin

33



30



51



57



33



171



93


Selling expenses














General and administrative expenses

7



7



6



6



7



26



26


Charges for integration and restructuring, closures and asset impairments









14





15


Other operating costs (income), net





(1)



1







(1)


Operating income

26



23



46



50



12



145



53


Equity earnings from joint ventures(1)





1





1



1



2


Net contribution to earnings

$

26



$

23



$

47



$

50



$

13



$

146



$

55


(1) Equity earnings (loss) from joint ventures attributed to the Real Estate and ENR segment are generated from our investments in our real estate development ventures.
















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)*
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Operating income


$

26



$

23



$

46



$

50



$

12



$

145



$

53


Depreciation, depletion and amortization

3



4



4



4



4



15



13


Basis of real estate sold

14



10



24



33



60



81



109


Special items









14





14


Adjusted EBITDA*

$

43



$

37



$

74



$

87



$

90



$

241



$

189



* See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.


Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Restructuring, impairments and other charges

$



$



$



$



$

(14)



$



$

(14)



Selected Segment Items
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Cash spent for capital expenditures

$



$

(1)



$

(1)



$



$



$

(2)



$

(1)

















Segment Statistics


















Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Net Sales
(millions)

Real Estate

$

37



$

27



$

64



$

80



$

85



$

208



$

172


Energy and Natural Resources

16



19



18



19



16



72



54


Total

$

53



$

46



$

82



$

99



$

101



$

280



$

226


Acres sold

Real Estate

13,257



10,003



35,749



38,226



44,589



97,235



82,687


Price per acre

Real Estate

$

2,403



$

2,714



$

1,784



$

2,076



$

1,903



$

2,079



$

2,072


 


Weyerhaeuser Company








Wood Products Segment

Q4.2017 Analyst Package











Preliminary results (unaudited)

























Segment Statement of Operations
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Sales to unaffiliated customers

$

1,154



$

1,293



$

1,299



$

1,228



$

1,032



$

4,974



$

4,334


Intersegment sales









7





68


Total net sales

1,154



1,293



1,299



1,228



1,039



4,974



4,402


Cost of products sold

926



1,002



1,005



947



889



3,880



3,688


Gross margin

228



291



294



281



150



1,094



714


Selling expenses

21



19



20



20



21



80



84


General and administrative expenses

32



32



30



32



28



126



109


Research and development expenses

1





1







2



2


Charges for integration and restructuring, closures and asset impairments

1



2



8



2



1



13



7


Charges for product remediation



50



190



50





290




Other operating costs (income), net

1



11



5



(3)



1



14




Operating income and Net contribution to earnings

$

172



$

177



$

40



$

180



$

99



$

569



$

512

















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)*
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Operating income

$

172



$

177



$

40



$

180



$

99



$

569



$

512


Depreciation, depletion and amortization

35



36



37



37



33



145



129


Special items



61



201



41





303




Adjusted EBITDA*

$

207



$

274



$

278



$

258



$

132



$

1,017



$

641



* See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.


Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Countervailing and antidumping duties

$



$

(11)



$

(5)



$

9



$



$

(7)



$


Restructuring, impairments and other charges





(6)







(6)




Product remediation




(50)



(190)



(50)





(290)




Total


$



$

(61)



$

(201)



$

(41)



$



$

(303)



$

















Selected Segment Items
















in millions


Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Total decrease (increase) in working capital(1)

$

(122)



$

113



$

150



$

(81)



$

32



$

60



$

(16)


Cash spent for capital expenditures

$

(44)



$

(61)



$

(71)



$

(123)



$

(145)



$

(299)



$

(297)


(1) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.
















Segment Statistics
















in millions, except for third party sales realizations

Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Structural Lumber
(board feet)

Third party net sales

$

478



$

538



$

525



$

517



$

427



$

2,058



$

1,839


Third party sales realizations

$

413



$

441



$

448



$

466



$

392



$

442



$

390


Third party sales volumes(2)

1,158



1,218



1,172



1,110



1,089



4,658



4,723


Production volumes

1,152



1,146



1,093



1,118



1,052



4,509



4,516


Engineered Solid
Section
(cubic feet)

Third party net sales

$

117



$

130



$

131



$

122



$

107



$

500



$

450


Third party sales realizations

$

1,881



$

1,979



$

2,047



$

2,076



$

1,930



$

1,995



$

1,934


Third party sales volumes(2)

6.2



6.6



6.4



5.9



5.6



25.1



23.3


Production volumes

6.3



6.6



6.4



5.8



5.6



25.1



22.8


Engineered
I-joists
(lineal feet)

Third party net sales

$

73



$

85



$

93



$

85



$

72



$

336



$

290


Third party sales realizations

$

1,481



$

1,522



$

1,529



$

1,561



$

1,485



$

1,524



$

1,484


Third party sales volumes(2)

49



57



60



54



48



220



195


Production volumes

50



53



58



52



43



213



184


Oriented Strand
Board
(square feet 3/8")

Third party net sales

$

203



$

225



$

243



$

233



$

163



$

904



$

707


Third party sales realizations

$

263



$

295



$

328



$

335



$

255



$

304



$

241


Third party sales volumes(2)

769



764



741



697



638



2,971



2,934


Production volumes

758



754



744



739



651



2,995



2,910


Softwood Plywood

(square feet 3/8")

Third party net sales

$

44



$

47



$

45



$

40



$

41



$

176



$

174


Third party sales realizations

$

377



$

380



$

386



$

417



$

364



$

389



$

368


Third party sales volumes(2)

118



123



117



95



113



453



481


Production volumes

97



99



88



86



92



370



396


Medium Density Fiberboard

(square feet 3/4")

Third party net sales

$

47



$

51



$

48



$

37



$

46



$

183



$

158


Third party sales realizations

$

795



$

845



$

821



$

829



$

779



$

822



$

769


Third party sales volumes(2)

59



60



58



45



58



222



206


Production volumes

56



63



63



50



54



232



209


(2) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

 

Weyerhaeuser Company







Unallocated Items

Q4.2017 Analyst Package










Preliminary results (unaudited)























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, pension and postretirement costs, foreign exchange transaction gains and losses associated with financing, the elimination of intersegment profit in inventory, equity earnings in our timberland venture, and the LIFO reserve.















Contribution to Earnings















in millions

Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Unallocated corporate function expenses

$

(19)



$

(17)



$

(19)



$

(18)



$

(25)



$

(73)



$

(87)


Unallocated share-based compensation

(6)





(1)



(2)



2



(9)



(3)


Unallocated pension service costs

(2)





(1)



(1)



(1)



(4)



(5)


Foreign exchange gains (losses)

(3)





3



1



(7)



1



6


Elimination of intersegment profit in inventory and LIFO

(6)



(3)



3



(14)



(12)



(20)



(18)


Gain on sale of nonstrategic asset

3



1



4



1



5



9



50


Charges for integration and restructuring, closures and asset impairments:














     Plum Creek merger and integration-related costs

(12)



(2)



(6)



(14)



(14)



(34)



(146)


     Other restructuring, closures and asset impairments













(2)


Other

(8)



(10)



5



28



(8)



15



(37)


Operating income (loss)

(53)



(31)



(12)



(19)



(60)



(115)



(242)


Equity earnings from joint venture(1)













20


Non-operating pension and other postretirement benefit (costs) credits(2)

(22)



(8)



(16)



(16)



11



(62)



48


Interest income and other

9



9



11



10



9



39



43


Net contribution to earnings

$

(66)



$

(30)



$

(17)



$

(25)



$

(40)



$

(138)



$

(131)


(1) 2016 results include equity earnings from our Timberland Venture, which was consolidated as a wholly-owned subsidiary effective August 31, 2016.

(2) During Q1 2017, we adopted ASU 2017-07. This ASU requires us to show components of pension and other post retirement benefit costs (interest, expected return on plan assets, amortization of actuarial gains or losses, amortization of prior service credits or costs) on the Consolidated Statement of Operations as a line item outside of "Operating income." We reclassified these components for all periods presented.















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)*















in millions

Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Operating income (loss)

$

(53)



$

(31)



$

(12)



$

(19)



$

(60)



$

(115)



$

(242)


Depreciation, depletion and amortization

1



2



2







5



4


Unallocated pension service costs

2





1



1



1



4



5


Special items

12



2



6



(28)



14



(8)



121


Adjusted EBITDA*

$

(38)



$

(27)



$

(3)



$

(46)



$

(45)



$

(114)



$

(112)



* See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.















Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)















in millions

Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Plum Creek merger and integration-related costs

$

(12)



$

(2)



$

(6)



$

(14)



$

(14)



$

(34)



$

(146)


Gain on sale of timberlands and other nonstrategic assets













36


Legal expense













(11)


Environmental remediation insurance recoveries







42





42




Total

$

(12)



$

(2)



$

(6)



$

28



$

(14)



$

8



$

(121)
















Unallocated Selected Items















in millions

Q1.2017


Q2.2017


Q3.2017


Q4.2017


Q4.2016


YTD.2017


YTD.2016

Cash spent for capital expenditures

$

(1)



$



$

(1)



$

(1)



$

(1)



$

(3)



$

(11)


 

SOURCE Weyerhaeuser Company


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