Form 8-K WEYERHAEUSER CO For: Oct 31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
�FORM 8-K
�
CURRENT REPORT
Pursuant to Section�13 or 15(d) of the
Securities Exchange Act of 1934
October�31, 2014
(Date of earliest event report)
�
WEYERHAEUSER COMPANY
(Exact name of registrant as specified in charter)
�
Washington | � | 1-4825 | � | 91-0470860 |
(State or other jurisdiction of incorporation or organization) | � | (Commission File Number) | � | (IRS Employer Identification Number) |
Federal Way, Washington 98063-9777
(Address of principal executive offices)
(zip code)
Registrants telephone number, including area code:
(253) 924-2345
�
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
� | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
� | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
� | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
� | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
TABLE OF CONTENTS
�
ITEM�2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On October�31, 2014, Weyerhaeuser Company issued a press release announcing its financial results for the quarter ended September�30, 2014. Copies of the press release and the exhibits thereto are furnished as Exhibits 99.1 and 99.2 to this report.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed to be filed for purposes of Section�18 of the Securities Exchange Act of 1934, as amended (the Exchange Act ), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
ITEM�9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) | The following items are filed as exhibits to this report. | |
99.1 | Press release of Weyerhaeuser Company issued October 31, 2014 reporting results of operations for the quarter ended September 30, 2014. | |
99.2 | Exhibits to press release of Weyerhaeuser Company issued October 31, 2014. | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
�
WEYERHAEUSER COMPANY | |||
By | � | /s/ Jeanne M. Hillman | |
Its: | � | Vice President and Chief Accounting Officer | |
Date: October�31, 2014
For�more�information�contact: | �� | Analysts�- Beth Baum or Denise Merle (253) 924-2058 |
�� | Media�- Anthony Chavez (253) 924-7148 | |
Weyerhaeuser Reports Third Quarter Results
" | Completed divestiture of homebuilding business with nearly $1 billion gain |
" | Increased quarterly dividend by 32 percent and repurchased $130 million of common shares |
" | 31 percent increase in earnings from continuing operations before special items compared with prior year |
FEDERAL WAY, Wash. (Oct�31, 2014) - Weyerhaeuser Company (NYSE: WY) today reported third quarter net earnings to common shareholders of $1,153 million, or $2.15 per diluted share, on net sales from continuing operations of $1.9 billion. This compares with net earnings of $157 million, or 27 cents per diluted share, on net sales from continuing operations of $1.9 billion for the same period last year.
Third quarter earnings include $966 million from discontinued operations related to the divestiture of Weyerhaeuser Real Estate Company and $9 million from special items. Excluding these items, the company reported net earnings of $178 million, or 33 cents per diluted share for the third quarter. This compares with net earnings from continuing operations before special items of $136 million for the same period last year and $234 million for second quarter 2014.
"We increased our quarterly dividend by 32 percent and repurchased $130 million of common shares in the third quarter, demonstrating our strong commitment to returning cash to shareholders, said Doyle Simons, president and chief executive officer. Our relentless focus on operational excellence resulted in another very good quarter for earnings and cash flow generation, as we continue to drive sustainable performance improvements in each of our businesses.
WEYERHAEUSER FINANCIAL HIGHLIGHTS | 2014 | 2014 | 2013 | |||
(millions, except per share data) | 2Q | 3Q | 3Q | |||
Net sales from continuing operations | $1,964 | $1,915 | $1,857 | |||
Net earnings attributable to Weyerhaeuser common shareholders(1) | $280 | $1,153 | $157 | |||
Weighted average shares outstanding, diluted(2) | 590 | 536 | 587 | |||
Earnings per diluted share | $0.47 | $2.15 | $0.27 | |||
Earnings per diluted share from continuing operations | $0.43 | $0.35 | $0.23 | |||
Net earnings from continuing operations before special items(3) | $234 | $178 | $136 | |||
Earnings per diluted share from continuing operations before special items | $0.40 | $0.33 | $0.23 | |||
Net change in cash and cash equivalents(4) | $68 | $775 | ($966) | |||
Cash and cash equivalents at end of period(5) | $845 | $1,620 | $1,392 | |||
(1)�Includes net earnings from discontinued operations. | ||||||
(2)�Weyerhaeuser's weighted average common shares outstanding decreased during the third quarter of 2014 due to retirement of approximately 59 million shares tendered under the exchange offer associated with the divestiture of Weyerhaeuser Real Estate Company and repurchase of approximately 4 million common shares. At the end of the third quarter the company had approximately 525 million common shares outstanding. | ||||||
(3)�Special items for the second and third quarters of 2014 include gains on a postretirement plan amendment and restructuring charges related to the companys SG&A cost reduction initiative. | ||||||
(4)�Net change in cash and equivalents excludes discontinued operations for all quarters. Third quarter 2014 includes $707 million related to the divestiture of Weyerhaeuser Real Estate Company. | ||||||
(5)�Cash and cash equivalents exclude discontinued operations for all quarters. Third quarter 2013 includes cash and cash equivalents designated for the purchase of Longview Timber LLC and the repayment of their acquired debt. | ||||||
TIMBERLANDS
�
FINANCIAL HIGHLIGHTS (millions) | 2Q 2014 | 3Q 2014 | �� | Change | |
Net sales | $397 | $364 | �� | ($33) | |
Contribution to pre-tax earnings | $170 | $136 | �� | ($34) | |
3Q 2014 Performance - Sales volumes and realizations for Western logs declined due to seasonally softer domestic market conditions and reduced Chinese demand. In the South, log sales volumes increased and realizations improved slightly.
Earnings from disposition of non-strategic timberlands decreased by $5 million compared with the second quarter.
4Q 2014 Outlook - Weyerhaeuser anticipates lower earnings from the Timberlands segment in the fourth quarter, primarily due to reduced earnings from disposition of non-strategic timberlands. In the West, the company expects improved log realizations and increased road maintenance costs. In the South, Weyerhaeuser anticipates higher silviculture costs.
WOOD PRODUCTS
�
FINANCIAL HIGHLIGHTS (millions) | 2Q 2014 | 3Q 2014 | �� | Change | |
Net sales | $1,077 | � | $1,048 | ($29) | |
Contribution to pre-tax earnings | $102 | $105 | � | $3 | |
3Q 2014 Performance - Average realizations for lumber and engineered wood products increased, and Western log costs declined. These improvements were largely offset by lower realizations for oriented strand board.
4Q 2014 Outlook - Weyerhaeuser expects earnings from the Wood Products segment in the fourth quarter to be significantly lower than the third quarter, and comparable to fourth quarter 2013. The company anticipates weaker realizations in lumber and oriented strand board, and seasonally lower sales volumes across all product lines.
CELLULOSE FIBERS
�
FINANCIAL HIGHLIGHTS (millions) | 2Q 2014 | 3Q 2014 | �� | Change | |
Net sales | $490 | $503 | �� | $13 | |
Contribution to pre-tax earnings | $91 | $59 | �� | ($32) | |
3Q 2014 Performance - Maintenance costs increased as expected due to an extended planned outage at the company's liquid packaging board facility and additional maintenance outage days within the pulp mill system. These costs were partially offset by higher average price realizations for pulp and liquid packaging board and improved sales volumes.
4Q 2014 Outlook - Weyerhaeuser expects significantly higher earnings from the Cellulose Fibers segment in the fourth quarter due to reduced maintenance expense.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control nearly 7 million acres of timberlands, primarily in the U.S., and manage another 14 million acres 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 and cellulose fibers products. Our company is a real estate investment trust. In 2013, our continuing operations generated $7.3 billion in sales and employed approximately 13,000 people who serve customers worldwide. We are listed on the Dow Jones World Sustainability Index. 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 October�31 to discuss third quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on October�31.
To join the conference call from within North America, dial 877-296-9413 (access code: 23991084) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 23991084). Replays will be available for two weeks at 855-859-2056 (access code: 23991084) from within North America and at 404-537-3406 (access code: 23991084) 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. These statements are based on various assumptions and may not be accurate because of risks and uncertainties surrounding these assumptions. Factors listed below, as well as other factors, may cause actual results to differ significantly from these forward-looking statements. There is no guarantee that any of the events anticipated by these forward-looking statements will occur. If any of the events occur, there is no guarantee what effect they will have on company operations or financial condition. The company will not update these forward-looking statements after the date of this news release.
�
Some forward-looking statements discuss the company's plans, strategies and intentions. They use words such as expects, may, will, believes, should, approximately, anticipates, estimates, and plans. In addition, these words may use the positive or negative or other variations of those terms.
This release contains forward-looking statements regarding the company's expectations during the fourth quarter of 2014, including with respect to earnings, log realizations, road maintenance and silviculture costs, dispositions of non-strategic timberlands, sales volumes across the Wood Products product lines, realizations in lumber and oriented strand board, and maintenance expenses in Cellulose Fibers.
Major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ from these forward-looking statements, include, but are not limited to:
" | the effect of general economic conditions, including employment rates, housing starts, interest rate levels, availability of financing for home mortgages, and strength of the U.S. dollar; |
" | market demand for the company's products, which is related to the strength of the various U.S. business segments and U.S. and international economic conditions; |
" | performance of the company's manufacturing operations, including maintenance requirements; |
" | the level of competition from domestic and foreign producers; |
" | the successful execution of internal performance plans, including restructurings and cost reduction initiatives; |
" | raw material prices; |
" | energy prices; |
" | the effect of weather; |
" | the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters; |
" | transportation 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 company stock on charges for stock-based compensation; |
" | changes in accounting principles; and |
" | other factors described under Risk Factors in the Company's annual report on Form�10-K and quarterly reports on Form 10-Q. |
�
The company also is a large exporter and is affected by changes in economic activity in Europe and Asia, particularly Japan and China. It is affected by changes in currency exchange rates, particularly the relative value of the U.S. dollar to the euro and the Canadian dollar, and the relative value of the euro and the yen. Restrictions on international trade or tariffs imposed on imports also may affect the company.
Weyerhaeuser Company | Exhibit 99.2 | ||||||||||||||||||
Q3.2014 Analyst Package | |||||||||||||||||||
Preliminary results, subject to audit | |||||||||||||||||||
Consolidated Statement of Operations | |||||||||||||||||||
in millions | Q2 | Q3 | Year-to-date | ||||||||||||||||
� | June�30, 2014 | September�30, 2014 | September�30, 2013 | September�30, 2014 | September�30, 2013 | ||||||||||||||
Net Sales | $ | 1,964 | $ | 1,915 | $ | 1,857 | $ | 5,615 | $ | 5,486 | |||||||||
Cost of products sold | 1,499 | 1,504 | 1,479 | 4,364 | 4,304 | ||||||||||||||
Gross margin | 465 | 411 | 378 | 1,251 | 1,182 | ||||||||||||||
Selling expenses | 27 | 28 | 32 | 83 | 96 | ||||||||||||||
General and administrative expenses | 88 | 73 | 98 | 249 | 299 | ||||||||||||||
Research and development expenses | 7 | 5 | 8 | 19 | 23 | ||||||||||||||
Charges for restructuring, closures and impairments | 8 | 10 | 1 | 37 | 7 | ||||||||||||||
Other operating income, net | (65 | ) | (23 | ) | (4 | ) | (163 | ) | (32 | ) | |||||||||
Operating income | 400 | 318 | 243 | 1,026 | 789 | ||||||||||||||
Interest income and other | 11 | 7 | 21 | 27 | 39 | ||||||||||||||
Interest expense, net of capitalized interest | (83 | ) | (88 | ) | (94 | ) | (254 | ) | (256 | ) | |||||||||
Earnings from continuing operations before income taxes | 328 | 237 | 170 | 799 | 572 | ||||||||||||||
Income taxes | (59 | ) | (39 | ) | (24 | ) | (148 | ) | (99 | ) | |||||||||
Earnings from continuing operations | 269 | 198 | 146 | 651 | 473 | ||||||||||||||
Earnings from discontinued operations, net of income taxes | 22 | 966 | 21 | 998 | 36 | ||||||||||||||
Net earnings | 291 | 1,164 | 167 | 1,649 | 509 | ||||||||||||||
Dividends on preference shares | (11 | ) | (11 | ) | (10 | ) | (33 | ) | (12 | ) | |||||||||
Net earnings attributable to Weyerhaeuser common shareholders | $ | 280 | $ | 1,153 | $ | 157 | $ | 1,616 | $ | 497 | |||||||||
Per Share Information | |||||||||||||||||||
Q2 | Q3 | Year-to-date | |||||||||||||||||
� | June�30, 2014 | September�30, 2014 | September�30, 2013 | September�30, 2014 | September�30, 2013 | ||||||||||||||
Earnings per share attributable to Weyerhaeuser common shareholders, basic: | |||||||||||||||||||
Continuing operations | $ | 0.44 | $ | 0.35 | $ | 0.23 | $ | 1.09 | $ | 0.83 | |||||||||
Discontinued operations | 0.04 | 1.82 | 0.04 | 1.76 | 0.06 | ||||||||||||||
Net earnings per share | $ | 0.48 | $ | 2.17 | $ | 0.27 | $ | 2.85 | $ | 0.89 | |||||||||
Earnings per share attributable to Weyerhaeuser common shareholders, diluted: | |||||||||||||||||||
Continuing operations | $ | 0.43 | $ | 0.35 | $ | 0.23 | $ | 1.08 | $ | 0.82 | |||||||||
Discontinued operations | 0.04 | 1.80 | 0.04 | 1.75 | 0.06 | ||||||||||||||
Net earnings per share | $ | 0.47 | $ | 2.15 | $ | 0.27 | $ | 2.83 | $ | 0.88 | |||||||||
Dividends paid per common share | $ | 0.22 | $ | 0.29 | $ | 0.22 | $ | 0.73 | $ | 0.59 | |||||||||
Weighted average shares outstanding (in thousands): | |||||||||||||||||||
Basic | 586,061 | 531,913 | 582,828 | 567,436 | 560,505 | ||||||||||||||
Diluted | 589,766 | 536,012 | 587,179 | 571,503 | 565,383 | ||||||||||||||
Common shares outstanding at end of period (in thousands) | 586,698 | 525,485 | 582,578 | 525,485 | 582,578 | ||||||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | |||||||||||||||||||
in millions | Q2 | Q3 | Year-to-date | ||||||||||||||||
� | June�30, 2014 | September�30, 2014 | September�30, 2013 | September�30, 2014 | September�30, 2013 | ||||||||||||||
Net earnings | $ | 291 | $ | 1,164 | $ | 167 | $ | 1,649 | $ | 509 | |||||||||
Earnings from discontinued operations, net of income taxes | (22 | ) | (966 | ) | (21 | ) | (998 | ) | (36 | ) | |||||||||
Interest income and other | (11 | ) | (7 | ) | (21 | ) | (27 | ) | (39 | ) | |||||||||
Interest expense, net of capitalized interest | 83 | 88 | 94 | 254 | 256 | ||||||||||||||
Income taxes | 59 | 39 | 24 | 148 | 99 | ||||||||||||||
Operating income | 400 | 318 | 243 | 1,026 | 789 | ||||||||||||||
Depreciation, depletion and amortization | 122 | 123 | 116 | 368 | 333 | ||||||||||||||
Non-operating pension and postretirement costs (credits) | (11 | ) | (12 | ) | 11 | (33 | ) | 31 | |||||||||||
Special items | (39 | ) | (15 | ) | (103 | ) | |||||||||||||
Adjusted EBITDA* | $ | 472 | $ | 414 | $ | 370 | $ | 1,258 | $ | 1,153 | |||||||||
* Non-GAAP measure - see page 8 for definition. | |||||||||||||||||||
Page 1 of 9
Weyerhaeuser Company | |||||||||||
Q3.2014 Analyst Package | |||||||||||
Preliminary results, subject to audit | |||||||||||
Consolidated Balance Sheet | |||||||||||
in millions | June�30, 2014 | September�30, 2014 | December�31, 2013 | ||||||||
� | |||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 845 | $ | 1,620 | $ | 830 | |||||
Receivables, less allowances | 590 | 583 | 518 | ||||||||
Receivables for taxes | 37 | 23 | 101 | ||||||||
Inventories | 596 | 578 | 542 | ||||||||
Prepaid expenses | 106 | 97 | 117 | ||||||||
Deferred tax assets | 128 | 111 | 130 | ||||||||
Current assets of discontinued operations | 988 | 88 | |||||||||
Total current assets | 3,290 | 3,012 | 2,326 | ||||||||
Property and equipment, net | 2,599 | 2,534 | 2,689 | ||||||||
Construction in progress | 157 | 215 | 112 | ||||||||
Timber and timberlands at cost, less depletion charged to disposals | 6,571 | 6,546 | 6,580 | ||||||||
Investments in and advances to equity affiliates | 188 | 186 | 190 | ||||||||
Goodwill | 40 | 40 | 42 | ||||||||
Deferred tax assets | 5 | ||||||||||
Other assets | 419 | 292 | 324 | ||||||||
Restricted financial investments held by variable interest entities | 615 | 615 | 615 | ||||||||
Noncurrent assets of discontinued operations | 1,827 | 1,694 | |||||||||
Total assets | $ | 15,706 | $ | 13,440 | $ | 14,577 | |||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Notes payable | $ | $ | $ | 2 | |||||||
Accounts payable | 335 | 351 | 343 | ||||||||
Accrued liabilities | 597 | 606 | 629 | ||||||||
Current liabilities of discontinued operations | 137 | 154 | |||||||||
Total current liabilities | 1,069 | 957 | 1,128 | ||||||||
Long-term debt | 4,891 | 4,891 | 4,891 | ||||||||
Long-term debt (nonrecourse to the company) held by variable interest entities | 511 | 511 | 511 | ||||||||
Deferred income taxes | 410 | 338 | 285 | ||||||||
Deferred pension and other postretirement benefits | 422 | 569 | 516 | ||||||||
Other liabilities | 334 | 318 | 382 | ||||||||
Noncurrent liabilities of discontinued operations | 926 | 32 | |||||||||
Total liabilities | 8,563 | 7,584 | 7,745 | ||||||||
Equity: | |||||||||||
Total Weyerhaeuser shareholders' interest | 7,092 | 5,856 | 6,795 | ||||||||
Noncontrolling interests | 2 | 3 | |||||||||
Noncontrolling interests in discontinued operations | 49 | 34 | |||||||||
Total equity | 7,143 | 5,856 | 6,832 | ||||||||
Total liabilities and equity | $ | 15,706 | $ | 13,440 | $ | 14,577 | |||||
Page 2 of 9
Weyerhaeuser Company | |||||||||||||||||||
Q3.2014 Analyst Package | |||||||||||||||||||
Preliminary results, subject to audit | |||||||||||||||||||
Consolidated Statement of Cash Flows | |||||||||||||||||||
in millions | Q2 | Q3 | Year-to-date | ||||||||||||||||
� | June�30, 2014 | September�30, 2014 | September�30, 2013 | September�30, 2014 | September�30, 2013 | ||||||||||||||
Cash flows from operations: | |||||||||||||||||||
Net earnings | $ | 291 | $ | 1,164 | $ | 167 | $ | 1,649 | $ | 509 | |||||||||
Noncash charges (credits) to income: | |||||||||||||||||||
Depreciation, depletion and amortization | 126 | 123 | 120 | 375 | 343 | ||||||||||||||
Deferred income taxes, net | 89 | 45 | 24 | 170 | 73 | ||||||||||||||
Pension and other postretirement benefits | (44 | ) | (13 | ) | 27 | (104 | ) | 79 | |||||||||||
Share-based compensation expense | 11 | 9 | 12 | 29 | 34 | ||||||||||||||
Charges for impairment of assets | 1 | 2 | 1 | 5 | |||||||||||||||
Net gains on dispositions of assets and operations | (21 | ) | (1,002 | ) | (21 | ) | (1,048 | ) | (42 | ) | |||||||||
Foreign exchange transaction (gains) losses | (12 | ) | 13 | (2 | ) | 15 | 6 | ||||||||||||
Change in: | |||||||||||||||||||
Receivables less allowances | (47 | ) | 20 | 8 | (28 | ) | (112 | ) | |||||||||||
Receivable for taxes | (3 | ) | 13 | 12 | 77 | 64 | |||||||||||||
Inventories | 34 | 8 | 36 | (46 | ) | ||||||||||||||
Real estate and land | (35 | ) | (26 | ) | (58 | ) | (133 | ) | (179 | ) | |||||||||
Prepaid expenses | (3 | ) | 6 | (2 | ) | 6 | (16 | ) | |||||||||||
Accounts payable and accrued liabilities | (17 | ) | 21 | 77 | (76 | ) | 45 | ||||||||||||
Deposits on land positions and other assets | (4 | ) | 7 | (1 | ) | 15 | (11 | ) | |||||||||||
Pension and postretirement contributions | (30 | ) | (22 | ) | (35 | ) | (85 | ) | (104 | ) | |||||||||
Other | (14 | ) | (13 | ) | (23 | ) | (33 | ) | (38 | ) | |||||||||
Net cash from operations | 322 | 353 | 343 | 784 | 656 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Property and equipment | (83 | ) | (105 | ) | (69 | ) | (239 | ) | (151 | ) | |||||||||
Timberlands reforestation | (11 | ) | (7 | ) | (7 | ) | (32 | ) | (28 | ) | |||||||||
Acquisition of Longview Timber LLC, net of cash acquired | (1,581 | ) | (1,581 | ) | |||||||||||||||
Net proceeds from Real Estate Divestiture, net of cash divested | 707 | 707 | |||||||||||||||||
Proceeds from sale of assets | 1 | 4 | 1 | 24 | 15 | ||||||||||||||
Net proceeds of investments held by special purpose entities | 22 | ||||||||||||||||||
Other | 25 | 9 | 25 | 5 | |||||||||||||||
Cash from investing activities | (93 | ) | 624 | (1,647 | ) | 485 | (1,718 | ) | |||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Net proceeds from issuance of common shares | 116 | 897 | |||||||||||||||||
Net proceeds from issuance of preference shares | 669 | ||||||||||||||||||
Net proceeds from issuance of debt | 494 | 494 | |||||||||||||||||
Net proceeds from issuance of Weyerhaeuser Real Estate Company (WRECO) debt | 887 | 887 | |||||||||||||||||
Deposit of WRECO debt proceeds into escrow | (887 | ) | (887 | ) | |||||||||||||||
Cash dividends on common shares | (128 | ) | (154 | ) | (128 | ) | (411 | ) | (330 | ) | |||||||||
Cash dividends on preference shares | (11 | ) | (11 | ) | (22 | ) | |||||||||||||
Change in book overdrafts | (11 | ) | 1 | (17 | ) | 8 | |||||||||||||
Payments on debt | (163 | ) | (340 | ) | |||||||||||||||
Exercises of stock options | 39 | 30 | 9 | 84 | 141 | ||||||||||||||
Repurchase of common stock | (123 | ) | (123 | ) | |||||||||||||||
Other | (1 | ) | 4 | 10 | 5 | 22 | |||||||||||||
Cash from financing activities | (101 | ) | (265 | ) | 339 | (484 | ) | 1,561 | |||||||||||
Net change in cash and cash equivalents | 128 | 712 | (965 | ) | 785 | 499 | |||||||||||||
Cash and cash equivalents at beginning of period | 780 | 908 | 2,362 | 835 | 898 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 908 | $ | 1,620 | $ | 1,397 | $ | 1,620 | $ | 1,397 | |||||||||
Cash paid (received) during the year for: | |||||||||||||||||||
Interest, net of amount capitalized | $ | 52 | $ | 100 | $ | 109 | $ | 253 | $ | 275 | |||||||||
Income taxes | $ | 5 | $ | 5 | $ | 2 | $ | (40 | ) | $ | (4 | ) | |||||||
Noncash investing and financing activity: | |||||||||||||||||||
Acquisition of Longview Timber LLC, debt assumed | $ | $ | $ | 1,070 | $ | $ | 1,070 | ||||||||||||
Common shares tendered in WRECO divestiture | $ | $ | 1,954 | $ | $ | 1,954 | $ | ||||||||||||
Page 3 of 9
Weyerhaeuser Company | Total Company Statistics | ||||||||||||||||||
Q3.2014 Analyst Package | |||||||||||||||||||
Preliminary results, subject to audit | |||||||||||||||||||
Special Items Included in Net Earnings | |||||||||||||||||||
in millions | Q2 | Q3 | Year-to-date | ||||||||||||||||
� | June�30, 2014 | September�30, 2014 | September�30, 2013 | September�30, 2014 | September�30, 2013 | ||||||||||||||
Net earnings attributable to Weyerhaeuser common shareholders | $ | 280 | $ | 1,153 | $ | 157 | $ | 1,616 | $ | 497 | |||||||||
Restructuring, impairments and other charges | 5 | 6 | 24 | ||||||||||||||||
Gain on sale of non-strategic asset | (14 | ) | |||||||||||||||||
Gain on postretirement plan amendment | (29 | ) | (15 | ) | (73 | ) | |||||||||||||
Net earnings attributable to Weyerhaeuser common shareholders before special items | 256 | 1,144 | 157 | 1,553 | 497 | ||||||||||||||
Earnings from discontinued operations, net of income taxes | (22 | ) | (966 | ) | (21 | ) | (998 | ) | (36 | ) | |||||||||
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items | $ | 234 | $ | 178 | $ | 136 | $ | 555 | $ | 461 | |||||||||
� | Q2 | Q3 | Year-to-date | ||||||||||||||||
� | June�30, 2014 | September�30, 2014 | September�30, 2013 | September�30, 2014 | September�30, 2013 | ||||||||||||||
Net earnings per diluted share attributable to Weyerhaeuser common shareholders | $ | 0.47 | $ | 2.15 | $ | 0.27 | $ | 2.83 | $ | 0.88 | |||||||||
Restructuring, impairments and other charges | 0.01 | 0.01 | 0.04 | ||||||||||||||||
Gain on sale of non-strategic asset | (0.02 | ) | |||||||||||||||||
Gain on postretirement plan amendment | (0.04 | ) | (0.03 | ) | (0.13 | ) | |||||||||||||
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items | 0.44 | 2.13 | 0.27 | 2.72 | 0.88 | ||||||||||||||
Earnings from discontinued operations, net of income taxes | (0.04 | ) | (1.80 | ) | (0.04 | ) | (1.75 | ) | (0.06 | ) | |||||||||
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items | $ | 0.40 | $ | 0.33 | $ | 0.23 | $ | 0.97 | $ | 0.82 | |||||||||
Selected Total Company Items | |||||||||||||||||||
in millions | Q2 | Q3 | Year-to-date | ||||||||||||||||
� | June�30, 2014 | September�30, 2014 | September�30, 2013 | September�30, 2014 | September�30, 2013 | ||||||||||||||
Depreciation, depletion and amortization: | |||||||||||||||||||
Cost of products sold | $ | 117 | $ | 117 | $ | 110 | $ | 351 | $ | 315 | |||||||||
Selling, general and administrative expenses | 5 | 6 | 6 | 17 | 18 | ||||||||||||||
Total depreciation, depletion and amortization | $ | 122 | $ | 123 | $ | 116 | $ | 368 | $ | 333 | |||||||||
Pension and postretirement costs: | |||||||||||||||||||
Pension and postretirement costs allocated to business segments | $ | 12 | $ | 11 | $ | 15 | $ | 33 | $ | 42 | |||||||||
Pension and postretirement costs (credits) not allocated | (11 | ) | (12 | ) | 11 | (33 | ) | 31 | |||||||||||
Total company pension and postretirement costs | $ | 1 | $ | (1 | ) | $ | 26 | $ | $ | 73 | |||||||||
Total decrease (increase) in working capital(1) | $ | 49 | $ | 106 | $ | 138 | $ | (15 | ) | $ | (35 | ) | |||||||
Cash spent for capital expenditures | $ | (92 | ) | $ | (112 | ) | $ | (71 | ) | $ | (267 | ) | $ | (170 | ) | ||||
(1)�Working capital does not include cash balances. | |||||||||||||||||||
Page 4 of 9
Weyerhaeuser Company | Timberlands Segment | |||||||||||||||||||
Q3.2014 Analyst Package | ||||||||||||||||||||
Preliminary results, subject to audit | ||||||||||||||||||||
Segment Statement of Operations | ||||||||||||||||||||
in millions | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | |||||||||||||||
Sales to unaffiliated customers | $ | 397 | $ | 364 | $ | 353 | $ | 1,138 | $ | 979 | ||||||||||
Intersegment sales | 186 | 218 | 194 | 642 | 584 | |||||||||||||||
Total net sales | 583 | 582 | 547 | 1,780 | 1,563 | |||||||||||||||
Cost of products sold | 399 | 432 | 407 | 1,262 | 1,167 | |||||||||||||||
Gross margin | 184 | 150 | 140 | 518 | 396 | |||||||||||||||
Selling expenses | 2 | 2 | 3 | 6 | 8 | |||||||||||||||
General and administrative expenses | 23 | 23 | 27 | 72 | 77 | |||||||||||||||
Research and development expenses | 3 | 4 | 4 | 11 | 13 | |||||||||||||||
Charges for restructuring, closures and impairments | 1 | 1 | 2 | |||||||||||||||||
Other operating income, net | (14 | ) | (16 | ) | (11 | ) | (42 | ) | (37 | ) | ||||||||||
Operating income | 170 | 136 | 117 | 470 | 333 | |||||||||||||||
Interest income and other | 1 | 3 | ||||||||||||||||||
Net contribution to earnings | $ | 170 | $ | 136 | $ | 118 | $ | 470 | $ | 336 | ||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||||||||||
in millions | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | |||||||||||||||
Operating income | $ | 170 | $ | 136 | $ | 117 | $ | 470 | $ | 333 | ||||||||||
Depreciation, depletion and amortization | 51 | 51 | 45 | 154 | 115 | |||||||||||||||
Adjusted EBITDA* | $ | 221 | $ | 187 | $ | 162 | $ | 624 | $ | 448 | ||||||||||
* Non-GAAP measure - see page 8 for definition. | ||||||||||||||||||||
Selected Segment Items | ||||||||||||||||||||
� | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | |||||||||||||||
Total decrease (increase) in working capital(1) | $ | (15 | ) | $ | 25 | $ | 31 | $ | (19 | ) | $ | |||||||||
Cash spent for capital expenditures | $ | (18 | ) | $ | (19 | ) | $ | (16 | ) | $ | (56 | ) | $ | (52 | ) | |||||
(1)�Working capital does not include cash balances. | ||||||||||||||||||||
Segment Statistics | ||||||||||||||||||||
Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | ||||||||||||||||
Third�Party� Net Sales (millions) | Logs: | |||||||||||||||||||
West | $ | 261 | $ | 227 | $ | 213 | $ | 745 | $ | 598 | ||||||||||
South | 60 | 69 | 66 | 191 | 192 | |||||||||||||||
Canada | 1 | 5 | 6 | 12 | 15 | |||||||||||||||
Total logs | 322 | 301 | 285 | 948 | 805 | |||||||||||||||
Chip sales | 2 | 4 | 2 | 9 | 7 | |||||||||||||||
Timberlands exchanges | 28 | 17 | 28 | 49 | 44 | |||||||||||||||
Higher and better use land sales | 7 | 4 | 2 | 14 | 10 | |||||||||||||||
Minerals, oil and gas | 8 | 10 | 9 | 25 | 26 | |||||||||||||||
Products from international operations | 26 | 22 | 24 | 72 | 68 | |||||||||||||||
Other products | 4 | 6 | 3 | 21 | 19 | |||||||||||||||
Total | $ | 397 | $ | 364 | $ | 353 | $ | 1,138 | $ | 979 | ||||||||||
Logs Third Party Sales Realizations (per cubic meter) | West | $ | 109.13 | $ | 102.23 | $ | 104.73 | $ | 108.64 | $ | 108.33 | |||||||||
South | $ | 45.16 | $ | 45.30 | $ | 43.32 | $ | 45.12 | $ | 43.42 | ||||||||||
Canada | $ | 38.04 | $ | 37.75 | $ | 38.77 | $ | 36.65 | $ | 37.38 | ||||||||||
International | $ | 16.27 | $ | 19.95 | $ | 25.07 | $ | 17.88 | $ | 24.75 | ||||||||||
Logs Third Party Sales Volumes (cubic meters, thousands) | West | 2,390 | 2,223 | 2,037 | 6,859 | 5,523 | ||||||||||||||
South | 1,339 | 1,500 | 1,514 | 4,224 | 4,420 | |||||||||||||||
Canada | 30 | 152 | 141 | 338 | 383 | |||||||||||||||
International | 139 | 170 | 100 | 456 | 245 | |||||||||||||||
Total | 3,898 | 4,045 | 3,792 | 11,877 | 10,571 | |||||||||||||||
Logs Fee Harvest Volumes (cubic meters, thousands) | West | 2,888 | 2,656 | 2,305 | 8,419 | 6,221 | ||||||||||||||
South | 2,715 | 2,950 | 2,928 | 8,531 | 8,589 | |||||||||||||||
International | 249 | 232 | 211 | 730 | 575 | |||||||||||||||
Total | 5,852 | 5,838 | 5,444 | 17,680 | 15,385 | |||||||||||||||
Page 5 of 9
Weyerhaeuser Company | Wood Products Segment | |||||||||||||||||||
Q3.2014 Analyst Package | ||||||||||||||||||||
Preliminary results, subject to audit | ||||||||||||||||||||
Segment Statement of Operations � | ||||||||||||||||||||
in millions | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | |||||||||||||||
Sales to unaffiliated customers | $ | 1,077 | $ | 1,048 | $ | 1,030 | $ | 3,023 | $ | 3,083 | ||||||||||
Intersegment sales | 21 | 20 | 19 | 60 | 55 | |||||||||||||||
Total net sales | 1,098 | 1,068 | 1,049 | 3,083 | 3,138 | |||||||||||||||
Cost of products sold | 939 | 910 | 905 | 2,640 | 2,559 | |||||||||||||||
Gross margin | 159 | 158 | 144 | 443 | 579 | |||||||||||||||
Selling expenses | 23 | 22 | 24 | 70 | 74 | |||||||||||||||
General and administrative expenses | 30 | 31 | 37 | 98 | 109 | |||||||||||||||
Research and development expenses | 2 | 2 | 3 | 4 | ||||||||||||||||
Charges for restructuring, closures and impairments | 2 | 1 | 2 | 2 | ||||||||||||||||
Other operating costs (income), net | 1 | (1 | ) | (3 | ) | |||||||||||||||
Operating income | 102 | 105 | 79 | 271 | 393 | |||||||||||||||
Interest income and other | ||||||||||||||||||||
Net contribution to earnings | $ | 102 | $ | 105 | $ | 79 | $ | 271 | $ | 393 | ||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||||||||||
in millions | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | |||||||||||||||
Operating income | $ | 102 | $ | 105 | $ | 79 | $ | 271 | $ | 393 | ||||||||||
Depreciation, depletion and amortization | 30 | 30 | 31 | 89 | 93 | |||||||||||||||
Adjusted EBITDA* | $ | 132 | $ | 135 | $ | 110 | $ | 360 | $ | 486 | ||||||||||
* Non-GAAP measure - see page 8 for definition. | ||||||||||||||||||||
Selected Segment Items | ||||||||||||||||||||
� | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | |||||||||||||||
Total decrease (increase) in working capital(1) | $ | 29 | $ | 41 | $ | 74 | $ | (67 | ) | $ | (45 | ) | ||||||||
Cash spent for capital expenditures | $ | (38 | ) | $ | (56 | ) | $ | (26 | ) | $ | (112 | ) | $ | (52 | ) | |||||
(1)�Working capital does not include cash balances. | ||||||||||||||||||||
Segment Statistics | ||||||||||||||||||||
in millions, except for third-party sales realizations | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | |||||||||||||||
Structural�Lumber (board feet) | Third party net sales | $ | 515 | $ | 500 | $ | 480 | $ | 1,442 | $ | 1,433 | |||||||||
Third party sales realizations | $ | 427 | $ | 431 | $ | 404 | $ | 430 | $ | 425 | ||||||||||
Third party sales volumes(1) | 1,206 | 1,162 | 1,189 | 3,357 | 3,370 | |||||||||||||||
Production volumes | 1,081 | 1,049 | 1,040 | 3,139 | 3,114 | |||||||||||||||
Outside purchase volumes | 82 | 91 | 92 | 251 | 271 | |||||||||||||||
Engineered Solid Section (cubic feet) | Third party net sales | $ | 114 | $ | 104 | $ | 97 | $ | 308 | $ | 263 | |||||||||
Third party sales realizations | $ | 1,976 | $ | 2,031 | $ | 1,963 | $ | 1,989 | $ | 1,913 | ||||||||||
Third party sales volumes(1) | 5.8 | 5.1 | 4.9 | 15.5 | 13.7 | |||||||||||||||
Production volumes | 5.7 | 5.2 | 4.6 | 15.8 | 13.8 | |||||||||||||||
Outside purchase volumes | 0.5 | 0.3 | 2.3 | 1.6 | ||||||||||||||||
Engineered I-joists (lineal feet) | Third party net sales | $ | 81 | $ | 74 | $ | 68 | $ | 214 | $ | 184 | |||||||||
Third party sales realizations | $ | 1,470 | $ | 1,540 | $ | 1,428 | $ | 1,489 | $ | 1,364 | ||||||||||
Third party sales volumes(1) | 55 | 49 | 48 | 144 | 135 | |||||||||||||||
Production volumes | 55 | 50 | 44 | 149 | 130 | |||||||||||||||
Outside purchase volumes | 3 | 1 | 2 | 5 | 6 | |||||||||||||||
Oriented Strand Board (square feet 3/8') | Third party net sales | $ | 159 | $ | 157 | $ | 188 | $ | 464 | $ | 648 | |||||||||
Third party sales realizations | $ | 226 | $ | 215 | $ | 246 | $ | 223 | $ | 309 | ||||||||||
Third party sales volumes(1) | 706 | 732 | 762 | 2,079 | 2,094 | |||||||||||||||
Production volumes | 681 | 717 | 725 | 2,055 | 2,050 | |||||||||||||||
Outside purchase volumes | 51 | 52 | 49 | 156 | 173 | |||||||||||||||
Softwood�Plywood (square feet 3/8') | Third party net sales | $ | 35 | $ | 42 | $ | 38 | $ | 107 | $ | 115 | |||||||||
Third party sales realizations | $ | 348 | $ | 381 | $ | 344 | $ | 355 | $ | 364 | ||||||||||
Third party sales volumes(1) | 102 | 110 | 108 | 302 | 315 | |||||||||||||||
Production volumes | 60 | 72 | 62 | 191 | 186 | |||||||||||||||
Outside purchase volumes | 36 | 31 | 40 | 100 | 115 | |||||||||||||||
(1) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. | ||||||||||||||||||||
Page 6 of 9
Weyerhaeuser Company | Cellulose Fibers Segment | |||||||||||||||||||
Q3.2014 Analyst Package | ||||||||||||||||||||
Preliminary results, subject to audit | ||||||||||||||||||||
Segment Statement of Operations | ||||||||||||||||||||
in millions | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | |||||||||||||||
Total net sales | $ | 490 | $ | 503 | $ | 474 | $ | 1,454 | $ | 1,424 | ||||||||||
Cost of products sold | 381 | 427 | 406 | 1,198 | 1,224 | |||||||||||||||
Gross margin | 109 | 76 | 68 | 256 | 200 | |||||||||||||||
Selling expenses | 4 | 3 | 5 | 11 | 14 | |||||||||||||||
General and administrative expenses | 20 | 18 | 21 | 58 | 62 | |||||||||||||||
Research and development expenses | 2 | 1 | 2 | 5 | 6 | |||||||||||||||
Other operating income, net | (8 | ) | (6 | ) | (6 | ) | (23 | ) | (18 | ) | ||||||||||
Operating income | 91 | 60 | 46 | 205 | 136 | |||||||||||||||
Interest income and other | (1 | ) | 1 | (1 | ) | (1 | ) | |||||||||||||
Net contribution to earnings | $ | 91 | $ | 59 | $ | 47 | $ | 204 | $ | 135 | ||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||||||||||
in millions | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | |||||||||||||||
Operating income | $ | 91 | $ | 60 | $ | 46 | $ | 205 | $ | 136 | ||||||||||
Depreciation, depletion and amortization | 39 | 39 | 38 | 116 | 116 | |||||||||||||||
Adjusted EBITDA* | $ | 130 | $ | 99 | $ | 84 | $ | 321 | $ | 252 | ||||||||||
* Non-GAAP measure - see page 8 for definition. | ||||||||||||||||||||
Selected Segment Items | ||||||||||||||||||||
� | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | |||||||||||||||
Total decrease (increase) in working capital(1) | $ | (37 | ) | $ | 39 | $ | 19 | $ | 33 | $ | 24 | |||||||||
Cash spent for capital expenditures | $ | (35 | ) | $ | (36 | ) | $ | (28 | ) | $ | (97 | ) | $ | (62 | ) | |||||
(1)�Working capital does not include cash balances. | ||||||||||||||||||||
Segment Statistics | ||||||||||||||||||||
Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | ||||||||||||||||
Pulp (air-dry�metric tons) | Third party net sales (millions) | $ | 383 | $ | 408 | $ | 371 | $ | 1,154 | $ | 1,111 | |||||||||
Third party sales realizations | $ | 845 | $ | 858 | $ | 805 | $ | 843 | $ | 799 | ||||||||||
Third party sales volumes (thousands) | 454 | 474 | 460 | 1,368 | 1,389 | |||||||||||||||
Production volumes (thousands) | 467 | 465 | 457 | 1,391 | 1,365 | |||||||||||||||
Liquid Packaging Board (tons) | Third party net sales (millions) | $ | 87 | $ | 80 | $ | 83 | $ | 247 | $ | 254 | |||||||||
Third party sales realizations | $ | 1,165 | $ | 1,185 | $ | 1,082 | $ | 1,157 | $ | 1,080 | ||||||||||
Third party sales volumes (thousands) | 75 | 68 | 76 | 214 | 235 | |||||||||||||||
Production volumes (thousands) | 79 | 57 | 67 | 214 | 222 | |||||||||||||||
Page 7 of 9
Weyerhaeuser Company | Unallocated Items | ||||||||||||||||||
Q3.2014 Analyst Package | |||||||||||||||||||
Preliminary results, subject to audit | |||||||||||||||||||
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 outstanding borrowings and the elimination of intersegment profit in inventory and the LIFO reserve. | |||||||||||||||||||
Contribution to Earnings | |||||||||||||||||||
in millions | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | ||||||||||||||
Unallocated corporate function expenses | $ | (7 | ) | $ | (3 | ) | $ | (8 | ) | $ | (17 | ) | $ | (26 | ) | ||||
Unallocated share-based compensation | (6 | ) | 1 | (1 | ) | (2 | ) | (3 | ) | ||||||||||
Unallocated pension & postretirement credits (costs) | 56 | 35 | (11 | ) | 146 | (31 | ) | ||||||||||||
Foreign exchange gains (losses) | 13 | (14 | ) | 2 | (16 | ) | (6 | ) | |||||||||||
Elimination of intersegment profit in inventory and LIFO | (1 | ) | 12 | 25 | (8 | ) | 9 | ||||||||||||
Other | (18 | ) | (14 | ) | (5 | ) | (23 | ) | (16 | ) | |||||||||
Operating income (loss) | 37 | 17 | 2 | 80 | (73 | ) | |||||||||||||
Interest income and other | 11 | 8 | 18 | 28 | 37 | ||||||||||||||
Net contribution to earnings from continuing operations(1) | $ | 48 | $ | 25 | $ | 20 | $ | 108 | $ | (36 | ) | ||||||||
(1)�We have reclassified certain results from the prior periods to present the results of operations discontinued in 2014 separately. Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders interest. | |||||||||||||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | |||||||||||||||||||
in millions | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | ||||||||||||||
Operating income (loss) | $ | 37 | $ | 17 | $ | 2 | $ | 80 | $ | (73 | ) | ||||||||
Depreciation, depletion and amortization | 2 | 3 | 2 | 9 | 9 | ||||||||||||||
Non-operating pension and postretirement costs (credits) | (11 | ) | (12 | ) | 11 | (33 | ) | 31 | |||||||||||
Special items | (39 | ) | (15 | ) | (103 | ) | |||||||||||||
Adjusted EBITDA* | $ | (11 | ) | $ | (7 | ) | $ | 15 | $ | (47 | ) | $ | (33 | ) | |||||
* Non-GAAP measure - see below for definition. | |||||||||||||||||||
Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax) | |||||||||||||||||||
� | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | ||||||||||||||
Gain on postretirement plan amendment | $ | 45 | $ | 23 | $ | $ | 113 | $ | |||||||||||
Restructuring, impairments and other charges | (6 | ) | (8 | ) | (32 | ) | |||||||||||||
Gain on sale of non-strategic asset | 22 | ||||||||||||||||||
Total | $ | 39 | $ | 15 | $ | $ | 103 | $ | |||||||||||
Unallocated Selected Items | |||||||||||||||||||
� | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | ||||||||||||||
Total decrease (increase) in working capital(1) | $ | 72 | $ | 1 | $ | 14 | $ | 38 | $ | (14 | ) | ||||||||
Cash spent for capital expenditures | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | $ | (2 | ) | $ | (4 | ) | ||||
(1)�Working capital does not include cash balances. | |||||||||||||||||||
*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, pension and postretirement costs not allocated to business segments (primarily interest cost, expected return on plan assets, amortization of actuarial loss and amortization of prior service cost/credit), special items and discontinued operations. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. | |||||||||||||||||||
Page 8 of 9
Weyerhaeuser Company | Discontinued Operations | ||||||||||||||||||
Q3.2014 Analyst Package | |||||||||||||||||||
Preliminary results, subject to audit | |||||||||||||||||||
Discontinued operations relate to WRECO, which was combined with TRI Pointe Homes, Inc. through a Reverse Morris Trust transaction on July 7, 2014. It was previously reported under the Real Estate segment and Unallocated Items. | |||||||||||||||||||
Discontinued Operations Statement of Operations | |||||||||||||||||||
in millions | Q2.2014 | Q3.2014 | Q3.2013 | YTD.2014 | YTD.2013 | ||||||||||||||
Total net sales | $ | 317 | $ | 8 | $ | 324 | $ | 573 | $ | 787 | |||||||||
Income (loss) from operations | $ | 27 | $ | (1 | ) | $ | 33 | $ | 42 | $ | 56 | ||||||||
Income taxes | (5 | ) | (5 | ) | (12 | ) | (16 | ) | (20 | ) | |||||||||
Net earnings (loss) from operations | 22 | (6 | ) | 21 | 26 | 36 | |||||||||||||
Net gain on divestiture | 972 | 972 | |||||||||||||||||
Net earnings from discontinued operations | $ | 22 | $ | 966 | $ | 21 | $ | 998 | $ | 36 | |||||||||
Page 9 of 9