Weyerhaeuser reports fourth quarter, full year results

February 3, 2017 3:05 AM | 218 min read | Make a Comment
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- Generated full year net earnings of over $1 billion or $1.39 per diluted share

- Increased Adjusted EBITDA by nearly 55 percent

- Merged with Plum Creek, ahead of schedule on capturing synergies

- Sold Cellulose Fibers businesses for $2.5 billion and net gain of $546 million

- Repurchased $2 billion of common shares

SEATTLE, Feb. 3, 2017 /PRNewswire/ -- Weyerhaeuser Company WY today reported fourth quarter net earnings to common shareholders of $551 million, or 73 cents per diluted share, on net sales of $1.6 billion. This compares with net earnings of $59 million, or 11 cents per diluted share, on net sales of $1.3 billion for the same period last year.

Fourth quarter results include after-tax earnings of $489 million from discontinued operations, primarily consisting of gains from the divestiture of the Cellulose Fibers pulp mills and printing papers business, and net after-tax charges of $44 million for special items. Excluding discontinued operations and special items, the company reported net earnings of $106 million or 14 cents per diluted share. This compares with net earnings from continuing operations before special items of $81 million for the same period last year and $172 million for third quarter 2016.

For the full year 2016, Weyerhaeuser reported net earnings attributable to common shareholders of $1.005 billion, or $1.39 per diluted share, on net sales of $6.4 billion. This compares with net earnings of $462 million on net sales of $5.2 billion for the same period last year. 2016 results include after-tax earnings of $612 million from discontinued operations related to the divested Cellulose Fibers segment.

Full year 2016 includes net after-tax charges of $141 million from special items. Excluding these items, the company reported net earnings from continuing operations before special items of $534 million, or 75 cents per diluted share. This compares with net earnings from continuing operations before special items of $382 million for the full year 2015.

"2016 was a transformational year for Weyerhaeuser. Through our merger with Plum Creek and the $2.5 billion divestiture of our Cellulose Fibers business, we became a focused timber, land and forest products company and nearly doubled the size of our timberland holdings," said Doyle R. Simons, president and chief executive officer. "In addition to completing these significant portfolio changes, we increased Adjusted EBITDA by nearly 55 percent, delivered more than $100 million of operational excellence improvements, captured significant merger synergies, and achieved the highest annual Wood Products earnings in over a decade. Finally, we returned cash to shareholders through a $2 billion share repurchase. Entering 2017, we remain strongly committed to driving industry-leading performance, continuing to capture benefits of the merger, and demonstrating disciplined capital allocation to drive superior value for shareholders."

WEYERHAEUSER FINANCIAL HIGHLIGHTS 
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. All periods presented have been revised to separate results of discontinued operations from the results of our continuing operations.

WEYERHAEUSER FINANCIAL HIGHLIGHTS

2016

2016

2015

2016

2015

(millions, except per share data)

Q3

Q4

Q4

Full Year

Net sales

$

1,709

$

1,596

$

1,266

$

6,365

$

5,246









Net earnings attributable to common shareholders

$

227

$

551

$

59

$

1,005

$

462

Weighted average shares outstanding, diluted(1)

754

753

514

722

520

Earnings per diluted share

$

0.30

$

0.73

$

0.11

$

1.39

$

0.89









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

$

172

$

106

$

81

$

534

$

382

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

$

0.23

$

0.14

$

0.16

$

0.75

$

0.74









Adjusted EBITDA(3)

$

434

$

400

$

248

$

1,583

$

1,025









(1) In first quarter 2016, Weyerhaeuser issued approximately 279 million shares in conjunction with the Plum Creek merger. During 2016, Weyerhaeuser repurchased approximately 68 million shares to complete our $2 billion accelerated repurchase commitment, part of the $2.5 billion repurchase authorization announced in conjunction with the merger transaction. In third quarter 2016, the company issued approximately 23 million shares as a result of the conversion of its mandatory convertible preference shares.

(2) After-tax special items for fourth quarter 2016 include a $24 million tax adjustment, $11 million for Plum Creek merger-related costs and $9 million of non-cash charges related to legacy real estate projects. Full year 2016 and full year 2015 include after-tax special charges from continuing operations of $141 million and $15 million respectively, primarily for Plum Creek merger-related costs.

(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, pension and postretirement costs not allocated to business segments 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 within this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS (millions)

3Q 2016

4Q 2016

Change

Net sales

$

700

$

672

$

(28)

Contribution to pre-tax earnings

$

122

$

123

$

1

Adjusted EBITDA

$

223

$

223

$

—

 

4Q 2016 Performance - In the South, average log sales realizations were comparable to third quarter and silviculture expenses decreased seasonally.  In the West, modestly higher sales realizations for domestic and export logs were offset by lower harvest volumes and seasonally higher logging and road costs.

1Q 2017 Outlook - Weyerhaeuser expects first quarter earnings and Adjusted EBITDA from the Timberlands segment will be comparable to the fourth quarter. In the South, the company anticipates lower fee harvest volumes, comparable log price realizations and a seasonal increase in forestry and silviculture expenses. In the West, the company expects modestly higher log sales volumes and improved average realizations due to higher export mix.

REAL ESTATE, ENERGY AND NATURAL RESOURCES

FINANCIAL HIGHLIGHTS (millions)

3Q 2016

4Q 2016

Change

Net sales

$

48

$

102

$

54

Contribution to pre-tax earnings

$

15

$

13

$

(2)

Pre-tax charge for special items

$

—

$

14

$

14

Contribution to pre-tax earnings before special items

$

15

$

27

$

12

Adjusted EBITDA

$

37

$

90

$

53

 

4Q 2016 Performance - Real Estate sales increased significantly compared with third quarter, and earnings from Energy and Natural Resources operations were modestly higher. Special items for the fourth quarter included $14 million of non-cash charges related to legacy real estate projects.

1Q 2017 Outlook - Weyerhaeuser expects a significant seasonal decline in earnings and Adjusted EBITDA in the first quarter compared with the fourth quarter due to lower real estate sales. The company anticipates full year 2017 Adjusted EBITDA for the segment will exceed $250 million.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS (millions)

3Q 2016

4Q 2016

Change

Net sales

$

1,194

$

1,039

$

(155)

Contribution to pre-tax earnings

$

170

$

99

$

(71)

Adjusted EBITDA

$

203

$

132

$

(71)

 

4Q 2016 Performance - Sales volumes declined seasonally across all product lines during the fourth quarter.  Average sales realizations for lumber were slightly lower and oriented strand board realizations were comparable to third quarter levels. Operating rates decreased primarily due to maintenance and planned downtime for the installation of capital projects.

1Q 2017 Outlook - Weyerhaeuser expects higher earnings and Adjusted EBITDA from the Wood Products segment in the first quarter. The company expects higher sales volumes, comparable sales realizations for lumber and oriented strand board, and seasonally improved operating rates and manufacturing costs.

DISCONTINUED OPERATIONS

Discontinued operations include the company's Cellulose Fibers segment, which consisted of pulp mills, a liquid packaging board facility, and a printing papers joint venture. Sales of the Cellulose Fibers pulp mills and printing papers business closed on December 1, 2016 and November 1, 2016 respectively.  The sale of the liquid packaging board business closed on August 31, 2016.

FINANCIAL HIGHLIGHTS (millions)

3Q 2016

4Q 2016

Change

Total net sales

$

420

$

231

$

(189)

Earnings from discontinued operations before income taxes

$

47

$

35

$

(12)

Income taxes

$

(23)

$

(51)

$

(28)

Net earnings (loss) from operations

$

24

$

(16)

$

(40)

Net gain on divestitures

$

41

$

505

$

464

Net earnings from discontinued operations

$

65

$

489

$

424

 

4Q 2016 Performance - Earnings increased primarily due to gains on the divestiture of the Cellulose Fibers pulp mills and printing papers business.

ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control over 13 million acres of timberlands, primarily 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 2016, we generated $6.4 billion in net sales and employed approximately 10,400 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 February 3 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 3.

To join the conference call from within North America, dial 877-296-9413 (access code: 43726350) at least 15 minutes prior to the call. Those calling from outside North America should dial 706-679-2458 (access code: 43726350). Replays will be available for two weeks at 855-859-2056 (access code: 43726350) from within North America and at 404-537-3406 (access code: 43726350) 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 our current expectations and various assumptions that are subject to risks and uncertainties. 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, expectations and intentions. They use words such as "outlook," "expects," "may," "will," "believes," "should," "approximately," "anticipates," "estimates," "plans," or other similar words. In addition, these words may use the positive or negative or another variation of those and similar words.

This release contains forward-looking statements regarding the company's expectations during the first quarter of 2017, including with respect to: earnings and Adjusted EBITDA; cost and operational synergies from the merger with Plum Creek; log price realizations, log sales volumes and export mix, harvest volumes and silviculture expense; real estate sales volumes; and sales volumes, operating rates and manufacturing costs across Wood Products product lines and expected realizations for lumber and oriented strand board.

Major risks, uncertainties and assumptions that affect the company's businesses and may cause actual results to differ materially from the content of these forward-looking statements, include, but are not limited to:

  • the effect of general economic conditions, including employment rates, interest rates, housing starts, general availability of financing for home mortgages and the relative strength of the U.S. dollar;
  • market demand for the company's 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;
  • performance of our manufacturing operations, including maintenance requirements;
  • potential disruptions in our manufacturing operations;
  • the level of competition from domestic and foreign producers;
  • our ability to successfully realize the expected benefits from the merger with Plum Creek;
  • the results of our strategic alternatives review of our operations in Uruguay;
  • 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,
  • 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 factors described under "Risk Factors" in our 2015 Annual Report on Form 10-K, our Registration Statement on Form S-4/A filed on December 23, 2015 and in our other filings from time to time with the Securities and Exchange Commission.

We are also a large exporter and our business is thus 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, yen and the Canadian dollar, and the relative value of the euro and the yen. Restrictions on international trade or tariffs imposed on imports and disruptions in shipping and transportation also may affect the company.

For more information contact:

Analysts - Beth Baum or Krista Kochivar (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, 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)

Interest income and other

—

—

—

(43)

(43)

Operating income

499

53

512

(194)

870

Depreciation, depletion and amortization

366

13

129

4

512

Basis of real estate sold

—

109

—

—

109

Non-operating pension and postretirement credits

—

—

—

(43)

(43)

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 nonstrategic assets, and $11 million of legal expense.



The table below reconciles Adjusted EBITDA for the year ended December 31, 2015:


DOLLAR AMOUNTS IN MILLIONS

Timberlands

Real Estate
& ENR

Wood
Products

Unallocated
Items

Total

Adjusted EBITDA by Segment:








Net earnings







$

506

Earnings from discontinued operations, net of income taxes







(95)

Interest expense, net of capitalized interest







341

Income taxes







(58)

Net contribution to earnings

$

470

$

79

$

258

$

(113)

$

694

Equity (earnings) loss from joint ventures

—

—

—

—

—

Interest income and other

—

—

—

(36)

(36)

Operating income

470

79

258

(149)

658

Depreciation, depletion and amortization

208

1

106

10

325

Basis of real estate sold

—

18

—

—

18

Non-operating pension and postretirement credits

—

—

—

(11)

(11)

Special items(1)(2)

—

—

8

27

35

Adjusted EBITDA

$

678

$

98

$

372

$

(123)

$

1,025

(1) Pre-tax special items included in Wood Products are restructuring charges related to the closure of four distribution centers.

(2) Pre-tax special items included in Unallocated Items consist of a $13 million noncash impairment charge related to a nonstrategic asset that was sold in the second quarter and $14 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)

Interest income and other

—

—

—

(9)

(9)

Operating income

123

12

99

(49)

185

Depreciation, depletion and amortization

100

4

33

—

137

Basis of real estate sold

—

60

—

—

60

Non-operating pension and postretirement credits

—

—

—

(10)

(10)

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 are Plum Creek merger-related costs.



The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2016:


DOLLAR AMOUNTS IN MILLIONS

Timberlands

Real Estate
& ENR

Wood
Products

Unallocated
Items

Total

Adjusted EBITDA by Segment:








Net earnings







$

227

Earnings from discontinued operations, net of income taxes







(65)

Interest expense, net of capitalized interest







114

Income taxes







22

Net contribution to earnings

$

122

$

15

$

170

$

(9)

$

298

Equity (earnings) loss from joint ventures

—

(1)

—

(8)

(9)

Interest income and other

—

—

—

(15)

(15)

Operating income

122

14

170

(32)

274

Depreciation, depletion and amortization

101

4

33

—

138

Basis of real estate sold

—

19

—

—

19

Non-operating pension and postretirement credits

—

—

—

(11)

(11)

Special items(1)

—

—

—

14

14

Adjusted EBITDA

$

223

$

37

$

203

$

(29)

$

434

(1) Pre-tax special items include $14 million of Plum Creek merger-related costs.



The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2015:


DOLLAR AMOUNTS IN MILLIONS

Timberlands

Real Estate
& ENR

Wood
Products

Unallocated
Items

Total

Adjusted EBITDA by Segment:








Net earnings







$

70

Earnings from discontinued operations, net of income taxes







16

Interest expense, net of capitalized interest







87

Income taxes







(22)

Net contribution to earnings

$

107

$

27

$

40

$

(23)

$

151

Equity (earnings) loss from joint ventures

—

—

—

—

—

Interest income and other

—

—

—

(9)

(9)

Operating income

107

27

40

(32)

142

Depreciation, depletion and amortization

53

1

27

1

82

Basis of real estate sold

—

5

—

—

5

Non-operating pension and postretirement credits

—

—

—

(3)

(3)

Special items(1)(2)

—

—

8

14

22

Adjusted EBITDA

$

160

$

33

$

75

$

(20)

$

248

(1) Pre-tax special items included in Wood Products are restructuring charges related to the closure of four distribution centers.

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



Weyerhaeuser Company

Exhibit 99.2

Q4.2016 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Operations (1)(2)


in millions

Q1

Q2

Q3

Q4

Year-to-date

Mar 31,

2016

Jun 30,

2016

Sep 30,

2016

Dec 31,

2016

Dec 31,

2015

Dec 31,

2016

Dec 31,
2015

Net Sales

$

1,405

$

1,655

$

1,709

$

1,596

$

1,266

$

6,365

$

5,246

Cost of products sold

1,089

1,258

1,314

1,265

998

4,926

4,121

Gross margin

316

397

395

331

268

1,439

1,125

Selling expenses

23

22

22

22

26

89

99

General and administrative expenses

76

94

78

84

75

332

259

Research and development expenses

5

4

5

5

6

19

18

Charges for integration and restructuring, closures and asset impairments

111

14

16

29

23

170

39

Other operating costs (income), net

(52)

5

—

6

(4)

(41)

52

Operating income from continuing operations

153

258

274

185

142

870

658

Equity earnings from joint ventures

5

7

9

1

—

22

—

Interest income and other

9

10

15

9

9

43

36

Interest expense, net of capitalized interest

(95)

(114)

(114)

(108)

(87)

(431)

(341)

Earnings from continuing operations before income taxes

72

161

184

87

64

504

353

Income taxes

(11)

(31)

(22)

(25)

22

(89)

58

Earnings from continuing operations

61

130

162

62

86

415

411

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

20

38

65

489

(16)

612

95

Net earnings

81

168

227

551

70

1,027

506

Dividends on preference shares

(11)

(11)

—

—

(11)

(22)

(44)

Net earnings attributable to Weyerhaeuser common shareholders

$

70

$

157

$

227

$

551

$

59

$

1,005

$

462


(1)

Discontinued operations as presented herein consist of the operations of our Cellulose Fibers segment. The corresponding assets and liabilities were classified as held for sale on our balance sheet as of June 30, 2016. All periods presented have been revised to separate the results of discontinued operations from the results of our continuing operations. Detailed operating results of discontinued operations are presented on page 10.

(2)

Amounts presented reflect the balances and 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,
2016

Jun 30,

2016

Sep 30,
2016

Dec 31,

2016

Dec 31,
2015

Dec 31,

2016

Dec 31,

2015

Earnings per share attributable to Weyerhaeuser common shareholders, basic:







Continuing operations

$

0.08

$

0.16

$

0.22

$

0.09

$

0.15

$

0.55

$

0.71

Discontinued operations

0.03

0.05

0.08

0.65

(0.04)

0.85

0.18

Net earnings per share

$

0.11

$

0.21

$

0.30

$

0.74

$

0.11

$

1.40

$

0.89














Earnings per share attributable to Weyerhaeuser common shareholders, diluted:







Continuing operations

$

0.08

$

0.16

$

0.21

$

0.08

$

0.15

$

0.55

$

0.71

Discontinued operations

0.03

0.05

0.09

0.65

(0.04)

0.84

0.18

Net earnings per share

$

0.11

$

0.21

$

0.30

$

0.73

$

0.11

$

1.39

$

0.89














Dividends paid per common share

$

0.31

$

0.31

$

0.31

$

0.31

$

0.31

$

1.24

$

1.20














Weighted average shares outstanding (in thousands):












Basic

632,004

743,140

749,587

748,835

511,175

718,560

516,371

Diluted

634,872

747,701

754,044

752,768

514,167

722,401

519,618














Common shares outstanding at end of period

(in thousands)

759,044

733,010

747,933

748,528

510,483

748,528

510,483

Weyerhaeuser Company





Q4.2016 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,

2016

Jun 30,

2016

Sep 30,

2016

Dec 31,

2016

Dec 31,

2015

Dec 31,

2016

Dec 31,

2015

Net earnings

$

81

$

168

$

227

$

551

$

70

$

1,027

$

506

(Earnings) loss from discontinued operations, net of tax

(20)

(38)

(65)

(489)

16

(612)

(95)

Equity earnings from joint ventures

(5)

(7)

(9)

(1)

—

(22)

—

Interest income and other

(9)

(10)

(15)

(9)

(9)

(43)

(36)

Interest expense, net of capitalized interest

95

114

114

108

87

431

341

Income taxes

11

31

22

25

(22)

89

(58)

Operating income from continuing operations

153

258

274

185

142

870

658

Depreciation, depletion and amortization

104

133

138

137

82

512

325

Basis of real estate sold

17

13

19

60

5

109

18

Non-operating pension and postretirement credits

(12)

(10)

(11)

(10)

(3)

(43)

(11)

Special items in operating income

74

19

14

28

22

135

35

Adjusted EBITDA*

$

336

$

413

$

434

$

400

$

248

$

1,583

$

1,025














*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Beginning in the first quarter of 2016, we revised our definition of Adjusted EBITDA to add back the basis of real estate sold. We have revised our prior-period presentation to conform to our current reporting.

 

Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, basis of real estate sold, pension and postretirement costs not allocated to business segments 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,

2016

Jun 30,

2016

Sep 30,

2016

Dec 31,
2016

Dec 31,

2015

Dec 31,

2016

Dec 31,
2015

Net earnings attributable to Weyerhaeuser common shareholders

$

70

$

157

$

227

$

551

$

59

$

1,005

$

462

Plum Creek merger-and integration-related costs

98

4

10

11

14

123

14

Gain on sale of non-strategic asset

(22)

—

—

—

—

(22)

—

Legal expense

—

7

—

—

—

7

—

Restructuring, impairments and other charges

—

—

—

9

5

9

14

Tax adjustment

—

—

—

24

(13)

24

(13)

Net earnings attributable to Weyerhaeuser common shareholders before special items

146

168

237

595

65

1,146

477

(Earnings) loss from discontinued operations, net of tax

(20)

(38)

(65)

(489)

16

(612)

(95)

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

$

126

$

130

$

172

$

106

$

81

$

534

$

382















Q1

Q2

Q3

Q4

Year-to-date

Mar 31,

2016

Jun 30,

2016

Sep 30,

2016

Dec 31,

2016

Dec 31,

2015

Dec 31,
2016

Dec 31,
2015

Net earnings per diluted share attributable to Weyerhaeuser common shareholders

$

0.11

$

0.21

$

0.30

$

0.73

$

0.11

$

1.39

$

0.89

Plum Creek merger-and integration-related costs

0.15

—

0.02

0.01

0.03

0.17

0.03

Gain on sale of non-strategic asset

(0.03)

—

—

—

—

(0.03)

—

Legal expense

—

0.01

—

—

—

0.01

—

Restructuring, impairments and other charges

—

—

—

0.01

0.01

0.01

0.03

Tax adjustment

—

—

—

0.04

(0.03)

0.04

(0.03)

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

0.23

0.22

0.32

0.79

0.12

1.59

0.92

(Earnings) loss from discontinued operations, net of tax

(0.03)

(0.05)

(0.09)

(0.65)

0.04

(0.84)

(0.18)

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

$

0.20

$

0.17

$

0.23

$

0.14

$

0.16

$

0.75

$

0.74








Weyerhaeuser Company



Q4.2016 Analyst Package





Preliminary results (unaudited)





Consolidated Balance Sheet








in millions

March 31,
 2016

June 30,
 2016

September 30,
 2016

December 31,
 2016

December 31,
 2015

ASSETS








Current assets:








Cash and cash equivalents

$

411

$

485

$

769

$

676

$

1,011

Receivables, less allowances

382

409

412

390

276

Receivables for taxes

25

7

5

84

30

Inventories

423

387

368

358

325

Prepaid expenses and other current assets

123

132

150

114

63

Assets of discontinued operations

1,929

1,908

1,652

—

1,934

Total current assets

3,293

3,328

3,356

1,622

3,639

Property and equipment, net

1,446

1,462

1,476

1,562

1,233

Construction in progress

151

172

202

213

144

Timber and timberlands at cost, less depletion charged to disposals

14,547

14,474

14,424

14,299

6,479

Minerals and mineral rights, net

325

319

321

319

14

Investments in and advances to equity affiliates

938

905

73

56

—

Goodwill

40

40

40

40

40

Deferred tax assets

291

250

122

293

254

Other assets

409

424

317

224

302

Restricted financial investments held by variable interest entities

615

615

615

615

615

Total assets

$

22,055

$

21,989

$

20,946

$

19,243

$

12,720










LIABILITIES AND EQUITY








Current liabilities:








Current maturities of long-term debt

$

—

$

—

$

1,981

$

281

$

—

Notes payable

4

1

1

1

4

Accounts payable

284

300

234

233

204

Accrued liabilities

483

590

533

691

427

Liabilities of discontinued operations

674

666

578

—

690

Total current liabilities

1,445

1,557

3,327

1,206

1,325

Note payable to timberland venture

835

830

—

—

—

Long-term debt

7,715

8,013

6,329

6,329

4,787

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

511

511

511

511

511

Deferred pension and other postretirement benefits

983

926

875

1,322

987

Deposit received from contribution of timberlands to related party

—

437

429

426

—

Other liabilities

285

285

285

269

241

Total liabilities

11,774

12,559

11,756

10,063

7,851

Total equity

10,281

9,430

9,190

9,180

4,869

Total liabilities and equity

$

22,055

$

21,989

$

20,946

$

19,243

$

12,720

Weyerhaeuser Company

Q4.2016 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Cash Flows












in millions

Q1

Q2

Q3

Q4

Year-to-date

Mar 31,

2016

Jun 30,
2016

Sep 30,

2016

Dec 31,

2016

Dec 31,
2015

Dec 31,

2016

Dec 31,

2015

Cash flows from operations:












Net earnings

$

81

$

168

$

227

$

551

$

70

$

1,027

$

506

Noncash charges (credits) to income:












Depreciation, depletion and amortization

142

147

139

137

120

565

479

Basis of real estate sold

17

13

19

60

5

109

18

Deferred income taxes, net

18

38

40

(255)

(10)

(159)

—

Gains on sales of discontinued operations

—

—

(60)

(729)

—

(789)

—

Gains on sales of non-strategic assets

(41)

(10)

(10)

(12)

(8)

(73)

(38)

Pension and other postretirement benefits

4

1

—

—

10

5

42

Other noncash charges (credits)

8

26

13

27

103

74

198

Change in:












Receivables less allowances

(47)

(43)

(6)

42

58

(54)

17

Receivable for taxes

10

25

2

69

(16)

106

(5)

Inventories

(43)

60

32

12

19

61

10

Prepaid expenses

(1)

—

(2)

8

5

5

3

Accounts payable and accrued liabilities

(70)

106

25

(50)

12

11

(35)

Pension and postretirement contributions

(17)

(12)

(54)

(16)

(24)

(99)

(83)

Distributions received from joint ventures

5

—

—

9

15

14

15

Other

(19)

(27)

(18)

(4)

(20)

(68)

(52)

Net cash from operations

47

492

347

(151)

339

735

1,075














Cash flows from investing activities:












Capital expenditures:












Purchases of property and equipment

(57)

(83)

(120)

(191)

(167)

(451)

(443)

Timberlands reforestation costs

(16)

(18)

(9)

(16)

(7)

(59)

(40)

Acquisition of timberlands

(6)

(2)

(2)

—

(2)

(10)

(36)

Proceeds from sales of discontinued operations

—

—

285

2,201

—

2,486

—

Proceeds from sale of non-strategic assets

70

13

11

10

12

104

19

Proceeds from contribution of timberlands to related party

—

440

—

—

—

440

—

Other

33

—

52

(36)

1

49

13

Cash from (used in) investing activities

24

350

217

1,968

(163)

2,559

(487)














Cash flows from financing activities:












Cash dividends on common shares

(241)

(228)

(231)

(232)

(159)

(932)

(619)

Cash dividends on preference shares

—

(11)

(11)

—

(22)

(22)

(44)

Proceeds from issuance of long-term debt

1,098

300

300

—

—

1,698

—

Payments of long-term debt

(720)

(3)

—

(1,700)

—

(2,423)

—

Repurchase of common stock

(798)

(831)

(374)

—

(34)

(2,003)

(518)

Other

(7)

8

39

12

3

52

25

Cash from financing activities

(668)

(765)

(277)

(1,920)

(212)

(3,630)

(1,156)














Net change in cash and cash equivalents

(597)

77

287

(103)

(36)

(336)

(568)














Cash from continuing operations at beginning of period

$

1,011

$

411

$

485

$

769

$

1,046

$

1,011

1,577

Cash from discontinued operations at beginning of period

1

4

7

10

2

1

$

3

Cash and cash equivalents at beginning of period

$

1,012

$

415

$

492

$

779

$

1,048

$

1,012

$

1,580














Cash from continuing operations at end of period

$

411

$

485

$

769

$

676

$

1,011

$

676

$

1,011

Cash from discontinued operations at end of period

4

7

10

—

1

—

1

Cash and cash equivalents at end of period

$

415

$

492

$

779

$

676

$

1,012

$

676

$

1,012














Cash paid (received) during the year for:












Interest, net of amount capitalized

$

133

$

92

$

142

$

79

$

57

$

446

$

347

Income taxes

$

(13)

$

(12)

$

(1)

$

511

$

10

$

485

$

14










Weyerhaeuser Company




Total Company Statistics

Q4.2016 Analyst Package







Preliminary results (unaudited)










Selected Total Company Items


in millions

Q1

Q2

Q3

Q4

Year-to-date

Mar 31,

2016

Jun 30,

2016

Sep 30,

2016

Dec 31,

2016

Dec 31,
2015

Dec 31,

2016

Dec 31,

2015

Pension and postretirement costs:












Pension and postretirement costs allocated to business segments

$

7

$

8

$

8

$

7

$

9

$

30

$

36

Pension and postretirement costs (credits) not allocated

(12)

(10)

(11)

(10)

(3)

(43)

(11)

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

5

—

—

—

—

5

—

Total pension and postretirement costs for continuing operations

—

(2)

(3)

(3)

6

(8)

25

Pension and postretirement service costs directly attributable to discontinued operations

4

3

3

3

4

13

17

Total company pension and postretirement costs

$

4

$

1

$

—

$

—

$

10

$

5

$

42














Cash spent for capital expenditures for continuing operations

$

(51)

$

(89)

$

(100)

$

(185)

$

(141)

$

(425)

$

(365)














Weyerhaeuser Company




Timberlands Segment

Q4.2016 Analyst Package







Preliminary results (unaudited)
























Segment Statement of Operations













in millions

Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Sales to unaffiliated customers

$

387

$

471

$

484

$

463

$

312

$

1,805

$

1,273

Intersegment sales

222

193

216

209

205

840

830

Total net sales

609

664

700

672

517

2,645

2,103

Cost of products sold

459

509

559

527

390

2,054

1,566

Gross margin

150

155

141

145

127

591

537

Selling expenses

1

2

1

1

1

5

5

General and administrative expenses

28

32

20

24

21

104

82

Research and development expenses

4

4

4

5

6

17

16

Charges for integration and restructuring, closures and asset impairments

—

—

—

—

—

—

—

Other operating income, net

(12)

(8)

(6)

(8)

(8)

(34)

(36)

Operating income and Net contribution to earnings

$

129

$

125

$

122

$

123

$

107

$

499

$

470















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*













in millions

Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Operating income

$

129

$

125

$

122

$

123

$

107

$

499

$

470

Depreciation, depletion and amortization

70

95

101

100

53

366

208

Adjusted EBITDA*

$

199

$

220

$

223

$

223

$

160

$

865

$

678

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













Selected Segment Items















Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Total decrease (increase) in working capital(1)

$

(53)

$

28

$

(15)

$

20

$

4

$

(20)

$

18

Cash spent for capital expenditures

$

(20)

$

(31)

$

(26)

$

(39)

$

(17)

$

(116)

$

(75)

(1) Working capital does not include cash balances. Represents the change in combined working capital of Timberlands and Real Estate & ENR.













Segment Statistics(2)














Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Third Party
Net Sales
(millions)

Logs:












West

$

215

$

232

$

217

$

201

$

203

$

865

$

830

South

101

154

160

151

61

566

241

North

13

19

29

30

—

91

—

Other

7

7

11

13

7

38

24

Total delivered logs

336

412

417

395

271

1,560

1,095

Stumpage and pay-as-cut timber

15

23

24

23

10

85

37

Products from international operations

16

21

21

21

18

79

87

Recreational and other lease revenue

6

8

15

15

7

44

25

Other revenue

14

7

7

9

6

37

29

Total

$

387

$

471

$

484

$

463

$

312

$

1,805

$

1,273

Delivered Logs

Third Party Sales

Realizations

(per ton)

West

$

100.71

$

98.21

$

98.18

$

100.43

$

101.54

$

99.32

$

101.12

South

$

36.39

$

35.54

$

35.27

$

34.98

$

36.87

$

35.46

$

37.13

North

$

59.31

$

65.43

$

59.17

$

59.28

$

—

$

60.47

$

—

International

$

15.73

$

23.29

$

24.27

$

25.72

$

16.60

$

21.79

$

18.01

Delivered Logs
Third Party Sales
Volumes
(tons, thousands)(3)

West

2,133

2,363

2,209

2,008

2,005

8,713

8,212

South

2,781

4,340

4,538

4,308

1,636

15,967

6,480

North

210

292

503

495

—

1,500

—

International

146

89

117

118

158

470

714

Other

169

169

263

342

167

943

551

Fee Harvest Volumes
(tons, thousands)(3)

West

2,801

2,980

2,744

2,558

2,596

11,083

10,563

South

5,030

7,061

6,992

7,260

3,565

26,343

14,113

North

260

454

678

652

—

2,044

—

International

299

248

242

330

255

1,119

980

Other

—

181

191

329

—

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.

(3)

Beginning in first quarter 2016, we report log sales and fee harvest volumes in tons. Prior period volumes have been converted from cubic meters to tons using conversion factors as follows:

     West: 1.056 m3 = 1 ton

     South: 0.818 m3 = 1 ton

     Canada (in Other):  1.244 m3 = 1 ton

     International:  0.907 m3 = 1 ton

Weyerhaeuser Company

Real Estate, Energy and Natural Resources Segment

Q4.2016 Analyst Package








Preliminary results (unaudited)

























Segment Statement of Operations













in millions

Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Sales to unaffiliated customers

$

39

$

38

$

48

$

101

$

32

$

226

$

101

Intersegment sales

—

—

—

1

—

1

—

Total net sales

39

38

48

102

32

227

101

Cost of products sold

20

19

26

69

5

134

20

Gross margin

19

19

22

33

27

93

81

Selling expenses

—

—

—

—

—

—

—

General and administrative expenses

4

8

7

7

3

26

6

Charges for integration, restructuring, closures and asset  impairments

—

1

—

14

—

15

—

Other operating income, net

—

(2)

1

—

(3)

(1)

(4)

Operating income

15

12

14

12

27

53

79

Equity earnings from joint ventures(1)

—

—

1

1

—

2

—

Net contribution to earnings

$

15

$

12

$

15

$

13

$

27

$

55

$

79

(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*













in millions

Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Operating income

$

15

$

12

$

14

$

12

$

27

$

53

$

79

Depreciation, depletion and amortization

2

3

4

4

1

13

1

Basis of real estate sold

17

13

19

60

5

109

18

Special items

—

—

—

14

—

14

—

Adjusted EBITDA*

$

34

$

28

$

37

$

90

$

33

$

189

$

98

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


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


















Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Restructuring, impairments and other charges

$

—

$

—

$

—

$

(14)

$

—

$

(14)

$

—

Selected Segment Items















Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Cash spent for capital expenditures

$

—

$

(1)

$

—

$

—

$

—

$

(1)

$

—















Segment Statistics















Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Net Sales

(millions)

Real Estate

$

30

$

26

$

31

$

85

$

25

$

172

$

75

Energy and natural resources

9

12

17

16

7

54

26

Total

$

39

$

38

$

48

$

101

$

32

$

226

$

101

Acres sold

Real Estate

15,225

10,020

12,853

44,589

6,765

82,687

27,390

Price per acre

Real Estate

$

1,980

$

2,555

$

2,354

$

1,903

$

3,450

$

2,072

$

2,490










Weyerhaeuser Company




Wood Products Segment

Q4.2016 Analyst Package







Preliminary results (unaudited)
























Segment Statement of Operations
















in millions

Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Sales to unaffiliated customers

$

979

$

1,146

$

1,177

$

1,032

$

922

$

4,334

$

3,872

Intersegment sales

22

22

17

7

21

68

82

Total net sales

1,001

1,168

1,194

1,039

943

4,402

3,954

Cost of products sold

862

957

980

889

841

3,688

3,487

Gross margin

139

211

214

150

102

714

467

Selling expenses

22

20

21

21

25

84

94

General and administrative expenses

27

30

24

28

28

109

102

Research and development expenses

1

—

1

—

—

2

2

Charges for restructuring, closures and impairments

1

4

1

1

9

7

10

Other operating income, net

1

1

(3)

1

—

—

1

Operating income and Net contribution to earnings

$

87

$

156

$

170

$

99

$

40

$

512

$

258















Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*













in millions

Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Operating income

$

87

$

156

$

170

$

99

$

40

$

512

$

258

Depreciation, depletion and amortization

30

33

33

33

27

129

106

Special items

—

—

—

—

8

—

8

Adjusted EBITDA*

$

117

$

189

$

203

$

132

$

75

$

641

$

372

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













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


















Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Restructuring, impairments and other charges

$

—

$

—

$

—

$

—

$

(8)

$

—

$

(8)















Selected Segment Items















Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Total decrease (increase) in working capital(1)

$

(132)

$

35

$

49

$

32

$

79

$

(16)

$

45

Cash spent for capital expenditures

$

(29)

$

(52)

$

(71)

$

(145)

$

(122)

$

(297)

$

(287)

(1) Working capital does not include cash balances.






















Segment Statistics













in millions, except for third-party sales realizations

Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Structural Lumber
(board feet)

Third party net sales

$

419

$

498

$

495

$

427

$

402

$

1,839

$

1,741

Third party sales realizations

$

364

$

399

$

401

$

392

$

360

$

390

$

379

Third party sales volumes(2)

1,152

1,249

1,233

1,089

1,114

4,723

4,588

Production volumes

1,129

1,205

1,130

1,052

1,035

4,516

4,252

Engineered Solid
Section
(cubic feet)

Third party net sales

$

109

$

115

$

119

$

107

$

105

$

450

$

428

Third party sales realizations

$

1,971

$

1,922

$

1,916

$

1,930

$

1,987

$

1,934

$

2,008

Third party sales volumes(2)

5.5

6.0

6.2

5.6

5.3

23.3

21.3

Production volumes

5.6

5.9

5.7

5.6

5.1

22.8

20.9

Engineered
I-joists
(lineal feet)

Third party net sales

$

66

$

73

$

79

$

72

$

68

$

290

$

284

Third party sales realizations

$

1,507

$

1,471

$

1,475

$

1,485

$

1,515

$

1,484

$

1,512

Third party sales volumes(2)

44

50

53

48

45

195

188

Production volumes

46

46

49

43

44

184

185

Oriented Strand
Board
(square feet 3/8')

Third party net sales

$

163

$

182

199

$

163

$

160

$

707

$

595

Third party sales realizations

$

214

$

240

256

$

255

$

221

$

241

$

200

Third party sales volumes(2)

759

761

776

638

723

2,934

2,972

Production volumes

749

733

777

651

697

2,910

2,847

Softwood Plywood

(square feet 3/8')

Third party net sales

$

35

$

50

$

48

$

41

$

27

$

174

$

129

Third party sales realizations

$

317

$

382

$

378

$

364

$

308

$

368

$

339

Third party sales volumes(2)

110

131

127

113

91

481

381

Production volumes

88

111

105

92

57

396

248

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








Weyerhaeuser Company


Unallocated Items

Q4.2016 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 and the elimination of intersegment profit in inventory, equity earnings from our Timberland Venture, and the LIFO reserve.












Contribution to Earnings












in millions

Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Unallocated corporate function expenses

$

(17)

$

(24)

$

(21)

$

(25)

$

(16)

$

(87)

$

(64)

Unallocated share-based compensation

(2)

1

(4)

2

(4)

(3)

6

Unallocated pension & postretirement credits (costs)

12

10

11

10

3

43

11

Foreign exchange gains (losses)

13

1

(1)

(7)

(6)

6

(46)

Elimination of intersegment profit in inventory and LIFO

(6)

(2)

2

(12)

1

(18)

8

Gain on sale of non-strategic asset

36

8

1

5

4

50

6

Charges for integration and restructuring, closures, and asset impairments:












     Plum Creek merger- and integration-related costs

(110)

(8)

(14)

(14)

(14)

(146)

(14)

     Other restructuring, closures and asset impairments

—

(1)

(1)

—

—

(2)

(15)

Other

(4)

(20)

(5)

(8)

—

(37)

(41)

Operating income (loss)

(78)

(35)

(32)

(49)

(32)

(194)

(149)

Equity earnings from joint venture(1)

5

7

8

—

—

20

—

Interest income and other

9

10

15

9

9

43

36

Net contribution to earnings

$

(64)

$

(18)

$

(9)

$

(40)

$

(23)

$

(131)

$

(113)

(1) Equity earning from joint venture included in Unallocated Items is generated from our investment in our timberland venture.












Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*












in millions

Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Operating income (loss)

$

(78)

$

(35)

$

(32)

$

(49)

$

(32)

$

(194)

$

(149)

Depreciation, depletion and amortization

2

2

—

—

1

4

10

Non-operating pension and postretirement costs (credits)

(12)

(10)

(11)

(10)

(3)

(43)

(11)

Special items

74

19

14

14

14

121

27

Adjusted EBITDA*

$

(14)

$

(24)

$

(29)

$

(45)

$

(20)

$

(112)

$

(123)

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












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













Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Plum Creek merger-and integration-related costs

$

(110)

$

(8)

$

(14)

$

(14)

$

(14)

$

(146)

$

(14)

Gain on sale of non-strategic asset

36

—

—

—

—

36

—

Legal expense

—

(11)

—

—

—

(11)

—

Restructuring, impairments and other charges

—

—

—

—

—

—

(13)

Tax adjustments

—

—

—

—

—

—

—

Total

$

(74)

$

(19)

$

(14)

$

(14)

$

(14)

$

(121)

$

(27)














Unallocated Selected Items













Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Cash spent for capital expenditures

$

(2)

$

(5)

$

(3)

$

(1)

$

(2)

$

(11)

$

(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, 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.








Weyerhaeuser Company




Discontinued Operations

Q4.2016 Analyst Package







Preliminary results (unaudited)
























Discontinued operations consist of our three Cellulose Fibers businesses, which were previously disclosed as a separate reportable business segment. On August 31, 2016, we completed the sale of the liquid packaging board business. On November 1, 2016, we completed the sale of our interest in a printing papers joint venture. On December 1, 2016, we completed the sale of our pulp business.

Discontinued Operations Statement of Operations













in millions

Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Total net sales

$

430

$

456

$

420

$

231

$

475

$

1,537

$

1,860

Cost of products sold

386

374

350

173

392

1,283

1,573

Gross margin

44

82

70

58

83

254

287

Selling expenses

4

3

3

2

4

12

14

General and administrative expenses

9

8

7

5

9

29

30

Research and development expenses

1

2

—

2

1

5

6

Charges for integration and restructuring, closures and asset impairments

6

25

13

19

1

63

2

Other operating income, net

(9)

(10)

(2)

(6)

(7)

(27)

(26)

Operating income

33

54

49

36

75

172

261

Equity loss from joint venture

(2)

(1)

—

(1)

(87)

(4)

(105)

Interest expense, net of capitalized interest

(2)

(1)

(2)

—

(1)

(5)

(6)

Earnings from discontinued operations before income taxes

29

52

47

35

(13)

163

150

Income taxes

(9)

(14)

(23)

(51)

(3)

(97)

(55)

Net earnings from operations

20

38

24

(16)

(16)

66

95

Net gain on divestitures

—

—

41

505

—

546

—

Net earnings from discontinued operations

$

20

$

38

$

65

$

489

$

(16)

$

612

$

95















Discontinued Operations Selected Items













in millions

Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Depreciation, depletion and amortization

$

38

$

15

$

—

$

—

$

38

$

53

$

154

Cash spent for capital expenditures

$

(22)

$

(12)

$

(29)

$

(22)

$

(33)

$

(85)

$

(118)















Segment Statistics















Q1.2016

Q2.2016

Q3.2016

Q4.2016

Q4.2015

YTD.2016

YTD.2015

Pulp

(air-dry metric tons)

Third party net sales (millions)

$

351

$

350

$

349

$

231

$

388

$

1,281

$

1,499

Third party sales realizations

$

755

$

762

$

780

$

788

$

800

$

770

$

823

Third party sales volumes (thousands)

464

460

446

293

484

1,663

1,821

Production volumes (thousands)

457

454

426

311

481

1,648

1,822

Liquid

Packaging

Board

(metric tons)

Third party net sales (millions)

$

67

$

85

$

61

$

—

$

73

$

213

$

305

Third party sales realizations

$

1,068

$

1,127

$

1,144

$

—

$

1,203

$

1,112

$

1,196

Third party sales volumes (thousands)

63

76

53

—

61

192

255

Production volumes (thousands)

64

65

48

—

63

177

255

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/weyerhaeuser-reports-fourth-quarter-full-year-results-300401836.html

SOURCE Weyerhaeuser Company

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