8-K
WEYERHAEUSER CO (WY)
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
Date of Report (Date of earliest event reported): January 25, 2024
WEYERHAEUSER COMPANY
(Exact name of registrant as specified in charter)
| Washington | 1-4825 | 91-0470860 |
|---|---|---|
| (State or other jurisdiction of<br><br>incorporation or organization) | (Commission<br><br>File Number) | (IRS Employer<br><br>Identification Number) |
220 Occidental Avenue South
Seattle, Washington 98104-7800
(Address of principal executive offices)
(zip code)
Registrant’s telephone number, including area code:
(206) 539-3000
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)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br><br>Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $1.25 per share | WY | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934:
| ☐ | Emerging growth company |
|---|---|
| ☐ | If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
TABLE OF CONTENTS
| Item 2.02. Results of Operations and Financial Condition |
|---|
| Item 9.01. Financial Statements and Exhibits |
| SIGNATURES |
| EXHIBIT 99.1 |
| EXHIBIT 99.2 |
Table of Contents
Section 2 - Financial Information
Item 2.02. Results of Operations and Financial Condition
On January 25, 2024, Weyerhaeuser Company issued a press release announcing its financial results for the quarter ended December 31, 2023. Copies of the press release and the exhibit thereto are furnished as Exhibit 99.1 and Exhibit 99.2 to this report.
In accordance with General Instruction B.2 of Form 8-K, the information in Item 2.02 of 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.
Section 9 - Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
(d) Exhibits. The following items are furnished as exhibits to this report.
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release of Weyerhaeuser Company issued January 25, 2024 reporting results of operations for the quarter ended December 31, 2023. |
| 99.2 | Exhibit to press release of Weyerhaeuser Company issued January 25, 2024. |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
Table of Contents
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/ David M. Wold |
| Name: | David M. Wold |
| Its: | Senior Vice President and Chief Financial Officer |
| (Principal Financial and Accounting Officer) |
Date: January 25, 2024
EX-99.1
EXHIBIT 99.1
| For more information contact: | Analysts – Andy Taylor (206) 539-3907 |
|---|---|
| Media – Nancy Thompson (919) 861-0342 |
Weyerhaeuser Reports Fourth Quarter, Full Year Results
• Generated full year net earnings of $839 million, or $1.15 per diluted share
• Achieved full year Adjusted EBITDA of $1.7 billion
• Returning $783 million in total cash back to shareholders based on 2023 results, including $125 million of share repurchase completed in 2023
• Monetized company’s first forest carbon credits
• Enhanced company’s Southern Timberlands portfolio with the completion of strategic transactions in the fourth quarter
SEATTLE, January 25, 2024 – Weyerhaeuser Company (NYSE: WY) today reported fourth quarter net earnings of $219 million, or 30 cents per diluted share, on net sales of $1.8 billion. This compares with net earnings of $11 million, or 2 cents per diluted share, on net sales of $1.8 billion for the same period last year and net earnings of $239 million for third quarter 2023. Excluding a total after-tax benefit of $98 million for special items, the company reported fourth quarter net earnings of $121 million, or 16 cents per diluted share. This compares with net earnings before special items of $171 million for the same period last year. There were no special items in third quarter 2023. Adjusted EBITDA for fourth quarter 2023 was $321 million, compared with $369 million for the same period last year and $509 million for third quarter 2023.
For full year 2023, Weyerhaeuser reported net earnings of $839 million, or $1.15 per diluted share, on net sales of $7.7 billion. This compares with net earnings of $1.9 billion on net sales of $10.2 billion for full year 2022. Full year 2023 includes a total after-tax benefit of $90 million for special items. Excluding these items, the company reported net earnings of $749 million, or $1.02 per diluted share. This compares with net earnings before special items of $2.2 billion for full year 2022. Adjusted EBITDA for full year 2023 was $1.7 billion, compared with $3.7 billion for full year 2022.
In December, Weyerhaeuser completed previously announced transactions in its Southern Timberlands portfolio, including the acquisition of mature and highly productive acreage in the Carolinas and Mississippi that is well-integrated with the company’s existing operations, and the divestiture of less strategic acreage in South Carolina.
This afternoon, the company declared a $0.14 per share supplemental dividend. On a combined basis, including dividends and share repurchase, the company is returning $783 million of cash, or approximately 80 percent of 2023 Adjusted FAD, to shareholders based on 2023 results.
“Our performance in 2023 reflects solid execution across all businesses, notwithstanding challenging market conditions,” said Devin W. Stockfish, president and chief executive officer. “In addition, our teams drove meaningful improvements across each of the value levers of our investment thesis in 2023. Notably, we optimized our timberlands holdings through strategic transactions in the Carolinas and Mississippi, captured additional operational excellence improvements, grew our Natural Climate Solutions business and sold our first forest carbon credits in the voluntary market. We also increased our base dividend by 5.6 percent and repurchased $125 million of our shares. Entering 2024, we are encouraged by resiliency in the housing market and maintain a favorable longer-term outlook for the demand fundamentals that will drive growth for our businesses. Our balance sheet is exceptionally strong, and we remain focused on serving our customers and driving long-term value for shareholders through our unrivaled portfolio, industry-leading performance, strong ESG foundation and disciplined capital allocation.”
| WEYERHAEUSER FINANCIAL HIGHLIGHTS | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (millions, except per share data) | Q3 | Q4 | Q4 | Full Year | Full Year | ||||||
| Net sales | $ | 2,022 | $ | 1,774 | $ | 1,823 | $ | 7,674 | $ | 10,184 | |
| Net earnings | $ | 239 | $ | 219 | $ | 11 | $ | 839 | $ | 1,880 | |
| Net earnings per diluted share | $ | 0.33 | $ | 0.30 | $ | 0.02 | $ | 1.15 | $ | 2.53 | |
| Weighted average shares outstanding, diluted | 732 | 731 | 737 | 732 | 743 | ||||||
| Net earnings before special items(1)(2) | $ | 239 | $ | 121 | $ | 171 | $ | 749 | $ | 2,247 | |
| Net earnings per diluted share before special items(1) | $ | 0.33 | $ | 0.16 | $ | 0.24 | $ | 1.02 | $ | 3.02 | |
| Adjusted EBITDA(1) | $ | 509 | $ | 321 | $ | 369 | $ | 1,694 | $ | 3,654 | |
| Net cash from operations | $ | 523 | $ | 288 | $ | 167 | $ | 1,433 | $ | 2,832 | |
| Adjusted FAD(3) | $ | 424 | $ | 92 | $ | (56 | ) | $ | 986 | $ | 2,327 |
(1) Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company’s earnings performance. Additionally, 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 adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Net earnings before special items and Adjusted EBITDA should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results. Reconciliations of net earnings before special items and Adjusted EBITDA to GAAP earnings are included within this release.
(2) Fourth quarter 2023 after-tax special items include an $83 million gain on the sale of timberlands, a $25 million legal benefit, a $10 million insurance recovery and a $20 million legal expense. Special items for prior periods presented are included in the reconciliation tables within this release.
(3) Adjusted Funds Available for Distribution (Adjusted FAD) is a non-GAAP measure that management uses to evaluate the company’s liquidity. Adjusted FAD, as we define it, is net cash from operations adjusted for capital expenditures and significant non-recurring items. Adjusted FAD measures cash generated during the period (net of capital expenditures and significant non-recurring items) that is available for dividends, repurchases of common shares, debt reduction, acquisitions, and other discretionary and nondiscretionary capital allocation activities. Adjusted FAD should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results. A reconciliation of Adjusted FAD to net cash from operations is included within this release.
TIMBERLANDS
| FINANCIAL HIGHLIGHTS | 2023 | 2023 | ||||||
|---|---|---|---|---|---|---|---|---|
| (millions) | Q3 | Q4 | Change | |||||
| Net sales | $ | 521 | $ | 534 | $ | 13 | ||
| Net contribution to pretax earnings | $ | 78 | $ | 186 | $ | 108 | ||
| Pretax benefit for special items | $ | — | $ | (109 | ) | $ | (109 | ) |
| Net contribution to pretax earnings before special items | $ | 78 | $ | 77 | $ | (1 | ) | |
| Adjusted EBITDA | $ | 143 | $ | 143 | $ | — |
Q4 2023 Performance – In the West, fee harvest volumes were slightly lower than the third quarter. Domestic sales volumes were lower and export volumes were significantly higher as the company flexed volumes to China to capture higher margin opportunities. Sales realizations were moderately higher, primarily due to the increase in export sales volumes. Per unit log and haul costs were moderately higher and forestry and road costs were seasonably lower. In the South, fee harvest volumes, sales realizations, and per unit log and haul costs were all comparable to the third quarter. Forestry and road costs were seasonally lower.
Fourth quarter pretax special items include an $84 million gain on the previously announced sale of timberlands in South Carolina and a $25 million legal benefit.
Q1 2024 Outlook – Weyerhaeuser anticipates first quarter earnings before special items and Adjusted EBITDA will be comparable to the fourth quarter. In the West, the company expects moderately higher fee harvest volumes and significantly lower per unit log and haul costs. Sales realizations are expected to be slightly lower due to mix. In the South, the company expects moderately lower fee harvest volumes and comparable sales realizations and per unit log and haul costs. Forestry and road costs in the West and South are expected to be seasonally lower.
REAL ESTATE, ENERGY & NATURAL RESOURCES
| FINANCIAL HIGHLIGHTS | 2023 | 2023 | |||||
|---|---|---|---|---|---|---|---|
| (millions) | Q3 | Q4 | Change | ||||
| Net sales | $ | 105 | $ | 77 | $ | (28 | ) |
| Net contribution to pretax earnings | $ | 56 | $ | 50 | $ | (6 | ) |
| Adjusted EBITDA | $ | 94 | $ | 67 | $ | (27 | ) |
Q4 2023 Performance – Earnings and Adjusted EBITDA decreased from the third quarter primarily due to lower real estate sales. The number of acres sold decreased significantly due to the timing of transactions. The average price per acre was higher and the average basis as a percentage of sales was lower due to the mix of properties sold.
Q1 2024 Outlook – Weyerhaeuser anticipates first quarter earnings will be comparable to the fourth quarter and Adjusted EBITDA will be approximately $15 million higher than the fourth quarter due to the timing and mix of real estate sales. The company anticipates full year 2024 Adjusted EBITDA for the segment will be approximately $320 million.
WOOD PRODUCTS
| FINANCIAL HIGHLIGHTS | 2023 | 2023 | ||||||
|---|---|---|---|---|---|---|---|---|
| (millions) | Q3 | Q4 | Change | |||||
| Net sales | $ | 1,537 | $ | 1,302 | $ | (235 | ) | |
| Net contribution to pretax earnings | $ | 277 | $ | 119 | $ | (158 | ) | |
| Pretax benefit for special items | $ | — | $ | (14 | ) | $ | (14 | ) |
| Net contribution to pretax earnings before special items | $ | 277 | $ | 105 | $ | (172 | ) | |
| Adjusted EBITDA | $ | 328 | $ | 159 | $ | (169 | ) |
Q4 2023 Performance – Sales realizations for lumber and oriented strand board decreased 14 percent and 17 percent, respectively, compared with third quarter averages. Sales volumes for lumber were moderately lower and unit manufacturing costs were moderately higher due to a decrease in production levels, partially driven by holiday downtime taken at the company’s Pacific Northwest mills. Log costs were comparable. For oriented strand board, sales volumes and fiber costs were comparable, while unit manufacturing costs were moderately lower. Sales realizations were slightly lower for most engineered wood products, while raw material costs were slightly higher. Sales volumes were lower and unit manufacturing costs were slightly lower. Distribution results were lower due to a decrease in commodity realizations and seasonally lower sales volumes.
Fourth quarter pretax special items include a $14 million insurance recovery.
Q1 2024 Outlook – Weyerhaeuser anticipates first quarter earnings before special items and Adjusted EBITDA will be slightly higher than the fourth quarter, excluding the effect of changes in average sales realizations for lumber and oriented strand board. For lumber, the company expects higher sales volumes, slightly lower log costs, and moderately lower unit manufacturing costs. For oriented strand board, the company anticipates moderately higher sales volumes, slightly higher fiber costs and slightly lower unit manufacturing costs. For engineered wood products, the company expects moderately higher sales volumes, primarily for solid section products, slightly lower sales realizations for most products, and slightly lower raw material costs. For distribution, the company anticipates higher results compared to the fourth quarter.
ABOUT WEYERHAEUSER
Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 10.5 million acres of timberlands in the U.S. and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in North America. Our company is a real estate investment trust. In 2023, we generated $7.7 billion in net sales and employed approximately
9,300 people who serve customers worldwide. 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 January 26, 2024 to discuss fourth quarter results.
To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on January 26, 2024.
To join the conference call from within North America, dial 1-877-407-0792 (access code: 13742026) at least 15 minutes prior to the call. Those calling from outside North America should dial 201-689-8263 (access code: 13742026). Replays will be available for two weeks at 1-844-512-2921 (access code: 13742026) from within North America, and at 1-412-317-6671 (access code: 13742026) 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, including, but not limited to, with respect to our outlook and expectations concerning the following: long-term demand drivers and fundamentals and future operating performance and delivery of long-term shareholder value and returns; earnings and Adjusted EBITDA for the company and for each of our businesses; fee harvest volumes, sales realizations, log and haul costs and forestry and road costs for our Timberlands business; sales volumes, log costs and unit manufacturing costs for our lumber business; sales volumes, fiber costs and unit manufacturing costs for our oriented strand board business; sales volumes, sales realizations and raw material costs for our engineered wood products business and distribution results. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often involve use of words and expressions such as “anticipate,” “expect,” "maintain," “planned,” “will,” and similar words and expressions. They may use the positive, negative or another variation of those and similar words and expressions. These forward-looking statements are based on our current expectations and assumptions and are not guarantees of future events or performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:
● the effect of general economic conditions, including employment rates, interest rate levels, inflation, housing starts, general availability and cost of financing for home mortgages and the relative strength of the U.S. dollar;
● the effect of COVID-19 and other viral or disease outbreaks and their potential effects on our business, results of operations, cash flows, financial condition and future prospects;
● 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;
● changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Japanese yen, the Chinese yuan, and the Canadian dollar, and the relative value of the euro to the yen;
● restrictions on international trade and tariffs imposed on imports or exports;
● the availability and cost of shipping and transportation;
● economic activity in Asia, especially Japan and China;
● performance of our manufacturing operations, including maintenance and capital requirements;
● potential disruptions in our manufacturing operations;
● the level of competition from domestic and foreign producers;
● the successful execution of our internal plans and strategic initiatives, including restructuring and cost reduction initiatives;
● our ability to hire and retain capable employees;
● the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals or the occurrence of any event, change or other circumstances that could give rise to a termination of any acquisition or divestiture transaction under the terms of the governing transaction agreements;
● raw material availability and prices;
● the effect of weather;
● changes in global or regional climate conditions and governmental response to such changes;
● the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
● energy prices;
● 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 employee retirements as it relates to the cost of pension benefits and changes in the market price of our common stock on charges for share-based compensation;
● the accuracy of our estimates of costs and expenses related to contingent liabilities and the accuracy of our estimates of charges related to casualty losses;
● changes in accounting principles and
● other risks and uncertainties identified in our 2022 Annual Report on Form 10-K, as well as those set forth from time to time in our other public statements, reports, registration statements, prospectuses, information statements and other filings with the SEC.
It is not possible to predict or identify all risks and uncertainties that might affect the accuracy of our forward-looking statements and, consequently, our descriptions of such risks and uncertainties should not be considered exhaustive. There is no guarantee that any of the events anticipated by these forward-looking statements will occur, and if any of the events do occur, there is no guarantee what effect they will have on the company's business, results of operations, cash flows, financial condition and future prospects.
Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.
RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS
We reconcile Adjusted EBITDA to net earnings for the consolidated company and to operating income (loss) 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, 2023:
| (millions) | Timberlands | Real Estate <br>& ENR | Wood <br>Products | Unallocated <br>Items | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adjusted EBITDA by Segment: | ||||||||||||||
| Net earnings | $ | 839 | ||||||||||||
| Interest expense, net of capitalized interest | 280 | |||||||||||||
| Income taxes | 98 | |||||||||||||
| Net contribution (charge) to earnings | $ | 488 | $ | 211 | $ | 709 | $ | (191 | ) | $ | 1,217 | |||
| Non-operating pension and other post-employment benefit costs | — | — | — | 45 | 45 | |||||||||
| Interest income and other | — | — | — | (76 | ) | (76 | ) | |||||||
| Operating income (loss) | 488 | 211 | 709 | (222 | ) | 1,186 | ||||||||
| Depreciation, depletion and amortization | 267 | 16 | 210 | 7 | 500 | |||||||||
| Basis of real estate sold | — | 93 | — | — | 93 | |||||||||
| Special items included in operating income (loss)(1)(2)(3) | (109 | ) | — | (14 | ) | 38 | (85 | ) | ||||||
| Adjusted EBITDA | $ | 646 | $ | 320 | $ | 905 | $ | (177 | ) | $ | 1,694 |
(1) Operating income (loss) for Timberlands includes pretax special items consisting of an $84 million gain on the sale of timberlands and a $25 million legal benefit.
(2) Operating income (loss) for Wood Products includes a pretax special item consisting of a $14 million insurance recovery.
(3) Operating income (loss) for Unallocated Items includes pretax special items consisting of an $11 million noncash environmental remediation charge and $27 million of legal expense.
The table below reconciles Adjusted EBITDA for the year ended December 31, 2022:
| (millions) | Timberlands | Real Estate <br>& ENR | Wood <br>Products | Unallocated <br>Items | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adjusted EBITDA by Segment: | ||||||||||||
| Net earnings | $ | 1,880 | ||||||||||
| Interest expense, net of capitalized interest | 270 | |||||||||||
| Loss on debt extinguishment(1) | 276 | |||||||||||
| Income taxes | 425 | |||||||||||
| Net contribution (charge) to earnings | $ | 528 | $ | 218 | $ | 2,536 | $ | (431 | ) | $ | 2,851 | |
| Non-operating pension and other post-employment benefit costs(2) | — | — | — | 254 | 254 | |||||||
| Interest income and other | — | — | — | (25 | ) | (25 | ) | |||||
| Operating income (loss) | 528 | 218 | 2,536 | (202 | ) | 3,080 | ||||||
| Depreciation, depletion and amortization | 256 | 17 | 201 | 6 | 480 | |||||||
| Basis of real estate sold | — | 84 | — | — | 84 | |||||||
| Special items included in operating income (loss)(3) | — | 10 | — | — | 10 | |||||||
| Adjusted EBITDA | $ | 784 | $ | 329 | $ | 2,737 | $ | (196 | ) | $ | 3,654 |
(1) Loss on debt extinguishment is a pretax special item related to the early extinguishment of $931 million of debt.
(2) Non-operating pension and other post-employment benefit costs includes a pretax special item consisting of a $205 million noncash settlement charge related to the transfer of pension plan assets and liabilities to an insurance company through the purchase of a group annuity contract.
(3) Operating income (loss) for Real Estate & ENR includes a pretax special item consisting of a $10 million noncash impairment charge related to the planned divestiture of legacy coal assets.
The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2023:
| (millions) | Timberlands | Real Estate <br>& ENR | Wood <br>Products | Unallocated <br>Items | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adjusted EBITDA by Segment: | ||||||||||||||
| Net earnings | $ | 219 | ||||||||||||
| Interest expense, net of capitalized interest | 72 | |||||||||||||
| Income taxes | (3 | ) | ||||||||||||
| Net contribution (charge) to earnings | $ | 186 | $ | 50 | $ | 119 | $ | (67 | ) | $ | 288 | |||
| Non-operating pension and other post-employment benefit costs | — | — | — | 12 | 12 | |||||||||
| Interest income and other | — | — | — | (22 | ) | (22 | ) | |||||||
| Operating income (loss) | 186 | 50 | 119 | (77 | ) | 278 | ||||||||
| Depreciation, depletion and amortization | 66 | 4 | 54 | 2 | 126 | |||||||||
| Basis of real estate sold | — | 13 | — | — | 13 | |||||||||
| Special items included in operating income (loss)(1)(2)(3) | (109 | ) | — | (14 | ) | 27 | (96 | ) | ||||||
| Adjusted EBITDA | $ | 143 | $ | 67 | $ | 159 | $ | (48 | ) | $ | 321 |
(1) Operating income (loss) for Timberlands includes pretax special items consisting of an $84 million gain on the sale of timberlands and a $25 million legal benefit.
(2) Operating income (loss) for Wood Products includes a pretax special item consisting of a $14 million insurance recovery.
(3) Operating income (loss) for Unallocated includes a pretax special item consisting of $27 million of legal expense.
The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2023:
| (millions) | Timberlands | Real Estate <br>& ENR | Wood <br>Products | Unallocated <br>Items | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adjusted EBITDA by Segment: | ||||||||||||
| Net earnings | $ | 239 | ||||||||||
| Interest expense, net of capitalized interest | 72 | |||||||||||
| Income taxes | 54 | |||||||||||
| Net contribution (charge) to earnings | $ | 78 | $ | 56 | $ | 277 | $ | (46 | ) | $ | 365 | |
| Non-operating pension and other post-employment benefit costs | — | — | — | 12 | 12 | |||||||
| Interest income and other | — | — | — | (24 | ) | (24 | ) | |||||
| Operating income (loss) | 78 | 56 | 277 | (58 | ) | 353 | ||||||
| Depreciation, depletion and amortization | 65 | 4 | 51 | 2 | 122 | |||||||
| Basis of real estate sold | — | 34 | — | — | 34 | |||||||
| Adjusted EBITDA | $ | 143 | $ | 94 | $ | 328 | $ | (56 | ) | $ | 509 |
The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2022:
| (millions) | Timberlands | Real Estate <br>& ENR | Wood <br>Products | Unallocated <br>Items | Total | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Adjusted EBITDA by Segment: | ||||||||||||
| Net earnings | $ | 11 | ||||||||||
| Interest expense, net of capitalized interest | 66 | |||||||||||
| Income taxes | (45 | ) | ||||||||||
| Net contribution (charge) to earnings | $ | 86 | $ | 24 | $ | 147 | $ | (225 | ) | $ | 32 | |
| Non-operating pension and other post-employment benefit costs(1) | — | — | — | 216 | 216 | |||||||
| Interest income and other | — | — | — | (16 | ) | (16 | ) | |||||
| Operating income (loss) | 86 | 24 | 147 | (25 | ) | 232 | ||||||
| Depreciation, depletion and amortization | 64 | 5 | 50 | 1 | 120 | |||||||
| Basis of real estate sold | — | 7 | — | — | 7 | |||||||
| Special items included in operating income (loss)(2) | — | 10 | — | — | 10 | |||||||
| Adjusted EBITDA | $ | 150 | $ | 46 | $ | 197 | $ | (24 | ) | $ | 369 |
(1) Non-operating pension and other post-employment benefit costs includes a pretax special item consisting of a $205 million noncash settlement charge related to the transfer of pension plan assets and liabilities to an insurance company through the purchase of a group annuity contract.
(2) Operating income (loss) for Real Estate & ENR includes a pretax special item consisting of a $10 million noncash impairment charge related to the planned divestiture of legacy coal assets.
RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS
We reconcile net earnings before special items to net earnings and net earnings per diluted share before special items to net earnings per diluted share, as those are the most directly comparable U.S. GAAP measures. We believe the measures provide meaningful supplemental information for investors about our operating performance, better facilitate period to period comparisons and are widely used by analysts, lenders, rating agencies and other interested parties.
The table below reconciles net earnings before special items to net earnings:
| 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (millions) | Q3 | Q4 | Q4 | Full Year | Full Year | |||||||
| Net earnings | $ | 239 | $ | 219 | $ | 11 | $ | 839 | $ | 1,880 | ||
| Environmental remediation charge | — | — | — | 8 | — | |||||||
| Gain on sale of timberlands | — | (83 | ) | — | (83 | ) | — | |||||
| Insurance recovery | — | (10 | ) | — | (10 | ) | — | |||||
| Legal benefit | — | (25 | ) | — | (25 | ) | — | |||||
| Legal expense | — | 20 | — | 20 | — | |||||||
| Loss on debt extinguishment | — | — | — | — | 207 | |||||||
| Pension settlement charge | — | — | 152 | — | 152 | |||||||
| Restructuring, impairments and other charges | — | — | 8 | — | 8 | |||||||
| Net earnings before special items | $ | 239 | $ | 121 | $ | 171 | $ | 749 | $ | 2,247 |
The table below reconciles net earnings per diluted share before special items to net earnings per diluted share:
| 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Q3 | Q4 | Q4 | Full Year | Full Year | ||||||||
| Net earnings per diluted share | $ | 0.33 | $ | 0.30 | $ | 0.02 | $ | 1.15 | $ | 2.53 | ||
| Environmental remediation charge | — | — | — | 0.01 | — | |||||||
| Gain on sale of timberlands | — | (0.12 | ) | — | (0.12 | ) | — | |||||
| Insurance recovery | — | (0.01 | ) | — | (0.01 | ) | — | |||||
| Legal benefit | — | (0.03 | ) | — | (0.03 | ) | — | |||||
| Legal expense | — | 0.02 | — | 0.02 | — | |||||||
| Loss on debt extinguishment | — | — | — | — | 0.28 | |||||||
| Pension settlement charge | — | — | 0.21 | — | 0.20 | |||||||
| Restructuring, impairments and other charges | — | — | 0.01 | — | 0.01 | |||||||
| Net earnings per diluted share before special items | $ | 0.33 | $ | 0.16 | $ | 0.24 | $ | 1.02 | $ | 3.02 |
RECONCILIATION OF ADJUSTED FAD TO NET CASH FROM OPERATIONS
We reconcile Adjusted FAD to net cash from operations, as that is the most directly comparable U.S. GAAP measure. We believe the measure provides meaningful supplemental information for investors about our liquidity.
The table below reconciles Adjusted FAD to net cash from operations:
| 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (millions) | Q3 | Q4 | Q4 | Full Year | Full Year | ||||||||||
| Net cash from operations | $ | 523 | $ | 288 | $ | 167 | $ | 1,433 | $ | 2,832 | |||||
| Capital expenditures | (99 | ) | (196 | ) | (223 | ) | (447 | ) | (468 | ) | |||||
| Adjustments to FAD(1) | — | — | — | — | (37 | ) | |||||||||
| Adjusted FAD | $ | 424 | $ | 92 | $ | (56 | ) | $ | 986 | $ | 2,327 |
(1) Adjustments to FAD include a $37 million product remediation insurance recovery received in first quarter 2022.
EX-99.2
| Weyerhaeuser Company | Exhibit 99.2 |
|---|
Q4.2023 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Operations
| Q1 | Q2 | Q3 | Q4 | Year-to-Date | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in millions | March 31,<br> 2023 | June 30,<br> 2023 | Sept 30,<br> 2023 | Dec 31,<br>2023 | Dec 31,<br>2022 | Dec 31,<br>2023 | Dec 31,<br>2022 | ||||||||||||||
| Net sales | $ | 1,881 | $ | 1,997 | $ | 2,022 | $ | 1,774 | $ | 1,823 | $ | 7,674 | $ | 10,184 | |||||||
| Costs of sales | 1,512 | 1,528 | 1,520 | 1,432 | 1,434 | 5,992 | 6,564 | ||||||||||||||
| Gross margin | 369 | 469 | 502 | 342 | 389 | 1,682 | 3,620 | ||||||||||||||
| Selling expenses | 22 | 22 | 22 | 21 | 23 | 87 | 93 | ||||||||||||||
| General and administrative expenses | 101 | 108 | 107 | 115 | 104 | 431 | 398 | ||||||||||||||
| Gain on sale of timberlands | — | — | — | (84 | ) | — | (84 | ) | — | ||||||||||||
| Other operating costs, net | 10 | 20 | 20 | 12 | 30 | 62 | 49 | ||||||||||||||
| Operating income | 236 | 319 | 353 | 278 | 232 | 1,186 | 3,080 | ||||||||||||||
| Non-operating pension and other post-employment benefit costs | (9 | ) | (12 | ) | (12 | ) | (12 | ) | (216 | ) | (45 | ) | (254 | ) | |||||||
| Interest income and other | 12 | 18 | 24 | 22 | 16 | 76 | 25 | ||||||||||||||
| Interest expense, net of capitalized interest | (66 | ) | (70 | ) | (72 | ) | (72 | ) | (66 | ) | (280 | ) | (270 | ) | |||||||
| Loss on debt extinguishment | — | — | — | — | — | — | (276 | ) | |||||||||||||
| Earnings (loss) before income taxes | 173 | 255 | 293 | 216 | (34 | ) | 937 | 2,305 | |||||||||||||
| Income taxes | (22 | ) | (25 | ) | (54 | ) | 3 | 45 | (98 | ) | (425 | ) | |||||||||
| Net earnings | $ | 151 | $ | 230 | $ | 239 | $ | 219 | $ | 11 | $ | 839 | $ | 1,880 |
Per Share Information
| Q1 | Q2 | Q3 | Q4 | Year-to-Date | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| March 31,<br> 2023 | June 30,<br> 2023 | Sept 30,<br> 2023 | Dec 31,<br>2023 | Dec 31,<br>2022 | Dec 31,<br>2023 | Dec 31,<br>2022 | ||||||||
| Earnings per share, basic and diluted | $ | 0.21 | $ | 0.31 | $ | 0.33 | $ | 0.30 | $ | 0.02 | $ | 1.15 | $ | 2.53 |
| Dividends paid per common share | $ | 1.09 | $ | 0.19 | $ | 0.19 | $ | 0.19 | $ | 0.18 | $ | 1.66 | $ | 2.17 |
| Weighted average shares outstanding (in thousands): | ||||||||||||||
| Basic | 733,163 | 732,021 | 731,046 | 730,422 | 735,715 | 731,654 | 741,904 | |||||||
| Diluted | 733,546 | 732,362 | 731,742 | 731,277 | 736,640 | 732,222 | 742,953 | |||||||
| Common shares outstanding at end of period <br>(in thousands) | 732,507 | 730,850 | 730,128 | 729,753 | 732,794 | 729,753 | 732,794 |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)
| Q1 | Q2 | Q3 | Q4 | Year-to-Date | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in millions | March 31,<br> 2023 | June 30,<br> 2023 | Sept 30,<br> 2023 | Dec 31,<br>2023 | Dec 31,<br>2022 | Dec 31,<br>2023 | Dec 31,<br>2022 | ||||||||||||||
| Net earnings | $ | 151 | $ | 230 | $ | 239 | $ | 219 | $ | 11 | $ | 839 | $ | 1,880 | |||||||
| Non-operating pension and other post-employment benefit costs | 9 | 12 | 12 | 12 | 216 | 45 | 254 | ||||||||||||||
| Interest income and other | (12 | ) | (18 | ) | (24 | ) | (22 | ) | (16 | ) | (76 | ) | (25 | ) | |||||||
| Interest expense, net of capitalized interest | 66 | 70 | 72 | 72 | 66 | 280 | 270 | ||||||||||||||
| Loss on debt extinguishment | — | — | — | — | — | — | 276 | ||||||||||||||
| Income taxes | 22 | 25 | 54 | (3 | ) | (45 | ) | 98 | 425 | ||||||||||||
| Operating income | 236 | 319 | 353 | 278 | 232 | 1,186 | 3,080 | ||||||||||||||
| Depreciation, depletion and amortization | 126 | 126 | 122 | 126 | 120 | 500 | 480 | ||||||||||||||
| Basis of real estate sold | 33 | 13 | 34 | 13 | 7 | 93 | 84 | ||||||||||||||
| Special items included in operating income | — | 11 | — | (96 | ) | 10 | (85 | ) | 10 | ||||||||||||
| Adjusted EBITDA(1) | $ | 395 | $ | 469 | $ | 509 | $ | 321 | $ | 369 | $ | 1,694 | $ | 3,654 |
(1) 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 adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. 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.
Page 1 of 8
| Weyerhaeuser Company | Total Company Statistics |
|---|
Q4.2023 Analyst Package
Preliminary results (unaudited)
Special Items Included in Net Earnings (Income Tax Affected)
| Q1 | Q2 | Q3 | Q4 | Year-to-Date | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in millions | March 31,<br> 2023 | June 30,<br> 2023 | Sept 30,<br> 2023 | Dec 31,<br>2023 | Dec 31,<br>2022 | Dec 31,<br>2023 | Dec 31,<br>2022 | |||||||||
| Net earnings | $ | 151 | $ | 230 | $ | 239 | $ | 219 | $ | 11 | $ | 839 | $ | 1,880 | ||
| Environmental remediation charge | — | 8 | — | — | — | 8 | — | |||||||||
| Gain on sale of timberlands | — | — | — | (83 | ) | — | (83 | ) | — | |||||||
| Insurance recovery | — | — | — | (10 | ) | — | (10 | ) | — | |||||||
| Legal benefit | — | — | — | (25 | ) | — | (25 | ) | — | |||||||
| Legal expense | — | — | — | 20 | — | 20 | — | |||||||||
| Loss on debt extinguishment(1) | — | — | — | — | — | — | 207 | |||||||||
| Pension settlement charge | — | — | — | — | 152 | — | 152 | |||||||||
| Restructuring, impairments and other charges | — | — | — | — | 8 | — | 8 | |||||||||
| Net earnings before special items(2) | $ | 151 | $ | 238 | $ | 239 | $ | 121 | $ | 171 | $ | 749 | $ | 2,247 | ||
| Q1 | Q2 | Q3 | Q4 | Year-to-Date | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| March 31,<br> 2023 | June 30,<br> 2023 | Sept 30,<br> 2023 | Dec 31,<br>2023 | Dec 31,<br>2022 | Dec 31,<br>2023 | Dec 31,<br>2022 | ||||||||||
| Net earnings per diluted share | $ | 0.21 | $ | 0.31 | $ | 0.33 | $ | 0.30 | $ | 0.02 | $ | 1.15 | $ | 2.53 | ||
| Environmental remediation charge | — | 0.01 | — | — | — | 0.01 | — | |||||||||
| Gain on sale of timberlands | — | — | — | (0.12 | ) | — | (0.12 | ) | — | |||||||
| Insurance recovery | — | — | — | (0.01 | ) | — | (0.01 | ) | — | |||||||
| Legal benefit | — | — | — | (0.03 | ) | — | (0.03 | ) | — | |||||||
| Legal expense | — | — | — | 0.02 | — | 0.02 | — | |||||||||
| Loss on debt extinguishment(1) | — | — | — | — | — | — | 0.28 | |||||||||
| Pension settlement charge | — | — | — | — | 0.21 | — | 0.20 | |||||||||
| Restructuring, impairments and other charges | — | — | — | — | 0.01 | — | 0.01 | |||||||||
| Net earnings per diluted share before special items(2) | $ | 0.21 | $ | 0.32 | $ | 0.33 | $ | 0.16 | $ | 0.24 | $ | 1.02 | $ | 3.02 |
(1) We recorded a total pretax loss on debt extinguishment of $276 million ($207 million after-tax) in first quarter 2022.
(2) Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company’s earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.
Selected Total Company Items
| Q1 | Q2 | Q3 | Q4 | Year-to-Date | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in millions | March 31,<br> 2023 | June 30,<br> 2023 | Sept 30,<br> 2023 | Dec 31,<br>2023 | Dec 31,<br>2022 | Dec 31,<br>2023 | Dec 31,<br>2022 | |||||||
| Pension and post-employment costs: | ||||||||||||||
| Pension and post-employment service costs | $ | 6 | $ | 5 | $ | 6 | $ | 6 | $ | 9 | $ | 23 | $ | 36 |
| Non-operating pension and other post-employment benefit costs | 9 | 12 | 12 | 12 | 216 | 45 | 254 | |||||||
| Total company pension and post-employment costs | $ | 15 | $ | 17 | $ | 18 | $ | 18 | $ | 225 | $ | 68 | $ | 290 |
Page 2 of 8
| Weyerhaeuser Company |
|---|
Q4.2023 Analyst Package
Preliminary results (unaudited)
Condensed Consolidated Balance Sheet
| in millions | March 31,<br>2023 | June 30,<br>2023 | September 30,<br>2023 | December 31,<br>2023 | December 31,<br>2022 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 797 | $ | 1,095 | $ | 1,173 | $ | 1,164 | $ | 1,581 |
| Short-term investments | — | 665 | 668 | — | — | |||||
| Receivables, net | 440 | 462 | 443 | 354 | 357 | |||||
| Receivables for taxes | 28 | 18 | 18 | 10 | 42 | |||||
| Inventories | 586 | 539 | 528 | 566 | 550 | |||||
| Prepaid expenses and other current assets | 202 | 188 | 186 | 219 | 216 | |||||
| Total current assets | 2,053 | 2,967 | 3,016 | 2,313 | 2,746 | |||||
| Property and equipment, net | 2,157 | 2,133 | 2,106 | 2,269 | 2,171 | |||||
| Construction in progress | 222 | 260 | 311 | 270 | 222 | |||||
| Timber and timberlands at cost, less depletion | 11,564 | 11,512 | 11,521 | 11,528 | 11,604 | |||||
| Minerals and mineral rights, less depletion | 211 | 207 | 203 | 200 | 214 | |||||
| Deferred tax assets | 8 | 8 | 8 | 15 | 8 | |||||
| Other assets | 365 | 383 | 385 | 388 | 375 | |||||
| Total assets | $ | 16,580 | $ | 17,470 | $ | 17,550 | $ | 16,983 | $ | 17,340 |
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Current maturities of long-term debt | $ | 981 | $ | 980 | $ | 861 | $ | — | $ | 982 |
| Accounts payable | 266 | 254 | 288 | 287 | 247 | |||||
| Accrued liabilities | 403 | 473 | 537 | 501 | 511 | |||||
| Total current liabilities | 1,650 | 1,707 | 1,686 | 788 | 1,740 | |||||
| Long-term debt, net | 4,072 | 4,817 | 4,818 | 5,069 | 4,071 | |||||
| Deferred tax liabilities | 101 | 105 | 113 | 81 | 96 | |||||
| Deferred pension and other post-employment benefits | 346 | 348 | 349 | 461 | 344 | |||||
| Other liabilities | 335 | 352 | 356 | 348 | 340 | |||||
| Total liabilities | 6,504 | 7,329 | 7,322 | 6,747 | 6,591 | |||||
| Total equity | 10,076 | 10,141 | 10,228 | 10,236 | 10,749 | |||||
| Total liabilities and equity | $ | 16,580 | $ | 17,470 | $ | 17,550 | $ | 16,983 | $ | 17,340 |
Page 3 of 8
| Weyerhaeuser Company |
|---|
Q4.2023 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Cash Flows
| Q1 | Q2 | Q3 | Q4 | Year-to-Date | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| in millions | March 31,<br> 2023 | June 30,<br> 2023 | Sept 30,<br> 2023 | Dec 31,<br>2023 | Dec 31,<br>2022 | Dec 31,<br>2023 | Dec 31,<br>2022 | ||||||||||||||
| Cash flows from operations: | |||||||||||||||||||||
| Net earnings | $ | 151 | $ | 230 | $ | 239 | $ | 219 | $ | 11 | $ | 839 | $ | 1,880 | |||||||
| Noncash charges (credits) to earnings: | |||||||||||||||||||||
| Depreciation, depletion and amortization | 126 | 126 | 122 | 126 | 120 | 500 | 480 | ||||||||||||||
| Basis of real estate sold | 33 | 13 | 34 | 13 | 7 | 93 | 84 | ||||||||||||||
| Pension and other post-employment benefits | 15 | 17 | 18 | 18 | 225 | 68 | 290 | ||||||||||||||
| Share-based compensation expense | 8 | 9 | 9 | 10 | 8 | 36 | 33 | ||||||||||||||
| Loss on debt extinguishment | — | — | — | — | — | — | 276 | ||||||||||||||
| Net gain on sale of timberlands | — | — | — | (84 | ) | — | (84 | ) | — | ||||||||||||
| Other | 3 | (1 | ) | (6 | ) | (2 | ) | (47 | ) | (6 | ) | (30 | ) | ||||||||
| Change in: | |||||||||||||||||||||
| Receivables, net | (83 | ) | (22 | ) | 28 | 81 | 68 | 4 | 149 | ||||||||||||
| Receivables and payables for taxes | 14 | 13 | 24 | (10 | ) | (116 | ) | 41 | (101 | ) | |||||||||||
| Inventories | (36 | ) | 50 | 9 | (36 | ) | (7 | ) | (13 | ) | (37 | ) | |||||||||
| Prepaid expenses and other current assets | (9 | ) | 17 | (13 | ) | (8 | ) | (5 | ) | (13 | ) | (12 | ) | ||||||||
| Accounts payable and accrued liabilities | (87 | ) | 57 | 73 | (8 | ) | (88 | ) | 35 | (111 | ) | ||||||||||
| Pension and post-employment benefit contributions and payments | (6 | ) | (5 | ) | (5 | ) | (4 | ) | (5 | ) | (20 | ) | (24 | ) | |||||||
| Other | (3 | ) | (8 | ) | (9 | ) | (27 | ) | (4 | ) | (47 | ) | (45 | ) | |||||||
| Net cash from operations | $ | 126 | $ | 496 | $ | 523 | $ | 288 | $ | 167 | $ | 1,433 | $ | 2,832 | |||||||
| Cash flows from investing activities: | |||||||||||||||||||||
| Capital expenditures for property and equipment | $ | (50 | ) | $ | (69 | ) | $ | (90 | ) | $ | (181 | ) | $ | (208 | ) | $ | (390 | ) | $ | (415 | ) |
| Capital expenditures for timberlands reforestation | (21 | ) | (12 | ) | (9 | ) | (15 | ) | (15 | ) | (57 | ) | (53 | ) | |||||||
| Acquisition of timberlands | — | (2 | ) | (68 | ) | (163 | ) | (9 | ) | (233 | ) | (295 | ) | ||||||||
| Proceeds from sale of timberlands | — | — | — | 166 | — | 166 | — | ||||||||||||||
| Purchase of short-term investments | — | (664 | ) | — | — | — | (664 | ) | — | ||||||||||||
| Maturities of short-term investments | — | — | — | 664 | — | 664 | — | ||||||||||||||
| Other | 2 | (2 | ) | 3 | 3 | 3 | 6 | 4 | |||||||||||||
| Net cash from investing activities | $ | (69 | ) | $ | (749 | ) | $ | (164 | ) | $ | 474 | $ | (229 | ) | $ | (508 | ) | $ | (759 | ) | |
| Cash flows from financing activities: | |||||||||||||||||||||
| Cash dividends on common shares | $ | (799 | ) | $ | (139 | ) | $ | (138 | ) | $ | (140 | ) | $ | (132 | ) | $ | (1,216 | ) | $ | (1,617 | ) |
| Net proceeds from issuance of long-term debt | — | 743 | — | 249 | — | 992 | 881 | ||||||||||||||
| Payments on long-term debt | — | — | (118 | ) | (860 | ) | — | (978 | ) | (1,203 | ) | ||||||||||
| Repurchases of common shares | (34 | ) | (51 | ) | (24 | ) | (22 | ) | (141 | ) | (131 | ) | (543 | ) | |||||||
| Other | (8 | ) | (2 | ) | (1 | ) | 2 | (4 | ) | (9 | ) | (9 | ) | ||||||||
| Net cash from financing activities | $ | (841 | ) | $ | 551 | $ | (281 | ) | $ | (771 | ) | $ | (277 | ) | $ | (1,342 | ) | $ | (2,491 | ) | |
| Net change in cash, cash equivalents and restricted cash | $ | (784 | ) | $ | 298 | $ | 78 | $ | (9 | ) | $ | (339 | ) | $ | (417 | ) | $ | (418 | ) | ||
| Cash, cash equivalents and restricted cash at beginning of period | 1,581 | 797 | 1,095 | 1,173 | 1,920 | 1,581 | 1,999 | ||||||||||||||
| Cash, cash equivalents and restricted cash at end of period | $ | 797 | $ | 1,095 | $ | 1,173 | $ | 1,164 | $ | 1,581 | $ | 1,164 | $ | 1,581 | |||||||
| Cash paid during the period for: | |||||||||||||||||||||
| Interest, net of amounts capitalized | $ | 57 | $ | 70 | $ | 63 | $ | 93 | $ | 72 | $ | 283 | $ | 283 | |||||||
| Income taxes, net of refunds | $ | 6 | $ | 12 | $ | 22 | $ | 23 | $ | 120 | $ | 63 | $ | 566 |
Page 4 of 8
| Weyerhaeuser Company | Timberlands Segment |
|---|
Q4.2023 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales to unaffiliated customers | $ | 462 | $ | 417 | $ | 380 | $ | 395 | $ | 437 | $ | 1,654 | $ | 1,858 | ||||
| Intersegment sales | 142 | 150 | 141 | 139 | 111 | 572 | 561 | |||||||||||
| Total net sales | 604 | 567 | 521 | 534 | 548 | 2,226 | 2,419 | |||||||||||
| Costs of sales | 461 | 439 | 417 | 429 | 436 | 1,746 | 1,796 | |||||||||||
| Gross margin | 143 | 128 | 104 | 105 | 112 | 480 | 623 | |||||||||||
| Selling expenses | — | — | 1 | — | — | 1 | 1 | |||||||||||
| General and administrative expenses | 25 | 24 | 25 | 26 | 25 | 100 | 98 | |||||||||||
| Gain on sale of timberlands | — | — | — | (84 | ) | — | (84 | ) | — | |||||||||
| Other operating (income) costs, net | (2 | ) | — | — | (23 | ) | 1 | (25 | ) | (4 | ) | |||||||
| Operating income and Net contribution to earnings | $ | 120 | $ | 104 | $ | 78 | $ | 186 | $ | 86 | $ | 488 | $ | 528 |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income | $ | 120 | $ | 104 | $ | 78 | $ | 186 | $ | 86 | $ | 488 | $ | 528 | ||
| Depreciation, depletion and amortization | 68 | 68 | 65 | 66 | 64 | 267 | 256 | |||||||||
| Special items | — | — | — | (109 | ) | — | (109 | ) | — | |||||||
| Adjusted EBITDA(1) | $ | 188 | $ | 172 | $ | 143 | $ | 143 | $ | 150 | $ | 646 | $ | 784 |
(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.
Segment Special Items Included In Net Contribution to Earnings (Pretax)
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gain on sale of timberlands | $ | — | $ | — | $ | — | $ | (84 | ) | $ | — | $ | (84 | ) | $ | — |
| Legal benefit | $ | — | $ | — | $ | — | $ | (25 | ) | $ | — | $ | (25 | ) | $ | — |
Selected Segment Items
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total (increase) decrease in working capital(2) | $ | (24 | ) | $ | 51 | $ | 23 | $ | (45 | ) | $ | (28 | ) | $ | 5 | $ | 9 | ||||
| Cash spent for capital expenditures(3) | $ | (26 | ) | $ | (22 | ) | $ | (26 | ) | $ | (37 | ) | $ | (38 | ) | $ | (111 | ) | $ | (113 | ) |
(2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.
(3) Does not include cash spent for the acquisition of timberlands.
Segment Statistics(4)
| Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Third Party | Delivered logs: | ||||||||||||||
| Net Sales | West | $ | 229 | $ | 206 | $ | 176 | $ | 183 | $ | 213 | $ | 794 | $ | 1,004 |
| (millions) | South | 168 | 162 | 155 | 158 | 165 | 643 | 645 | |||||||
| North | 17 | 7 | 11 | 13 | 16 | 48 | 56 | ||||||||
| Total delivered logs | 414 | 375 | 342 | 354 | 394 | 1,485 | 1,705 | ||||||||
| Stumpage and pay-as-cut timber | 16 | 15 | 12 | 13 | 16 | 56 | 46 | ||||||||
| Recreational and other lease revenue | 18 | 17 | 19 | 20 | 17 | 74 | 68 | ||||||||
| Other revenue | 14 | 10 | 7 | 8 | 10 | 39 | 39 | ||||||||
| Total | $ | 462 | $ | 417 | $ | 380 | $ | 395 | $ | 437 | $ | 1,654 | $ | 1,858 | |
| Delivered Logs | West | $ | 137.10 | $ | 123.45 | $ | 119.19 | $ | 126.58 | $ | 141.88 | $ | 126.82 | $ | 159.46 |
| Third Party Sales | South | $ | 38.23 | $ | 37.49 | $ | 36.92 | $ | 37.15 | $ | 38.67 | $ | 37.46 | $ | 38.23 |
| Realizations (per ton) | North | $ | 81.71 | $ | 78.69 | $ | 73.81 | $ | 69.92 | $ | 80.57 | $ | 76.03 | $ | 79.64 |
| Delivered Logs | West | 1,674 | 1,661 | 1,479 | 1,445 | 1,503 | 6,259 | 6,296 | |||||||
| Third Party Sales | South | 4,386 | 4,341 | 4,180 | 4,266 | 4,252 | 17,173 | 16,864 | |||||||
| Volumes (tons, thousands) | North | 204 | 98 | 148 | 179 | 202 | 629 | 707 | |||||||
| Fee Harvest Volumes | West | 2,245 | 2,292 | 2,137 | 2,079 | 1,773 | 8,753 | 7,858 | |||||||
| (tons, thousands) | South | 6,432 | 6,430 | 6,146 | 6,169 | 6,216 | 25,177 | 24,329 | |||||||
| North | 285 | 175 | 223 | 259 | 271 | 942 | 974 |
(4) Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.
Page 5 of 8
| Weyerhaeuser Company | Real Estate, Energy & Natural Resources Segment |
|---|
Q4.2023 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | $ | 101 | $ | 80 | $ | 105 | $ | 77 | $ | 55 | $ | 363 | $ | 368 |
| Costs of sales | 41 | 21 | 43 | 21 | 13 | 126 | 113 | |||||||
| Gross margin | 60 | 59 | 62 | 56 | 42 | 237 | 255 | |||||||
| General and administrative expenses | 7 | 7 | 6 | 6 | 8 | 26 | 27 | |||||||
| Other operating costs, net | — | — | — | — | 10 | — | 10 | |||||||
| Operating income and Net contribution to earnings | $ | 53 | $ | 52 | $ | 56 | $ | 50 | $ | 24 | $ | 211 | $ | 218 |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income | $ | 53 | $ | 52 | $ | 56 | $ | 50 | $ | 24 | $ | 211 | $ | 218 |
| Depreciation, depletion and amortization | 3 | 5 | 4 | 4 | 5 | 16 | 17 | |||||||
| Basis of real estate sold | 33 | 13 | 34 | 13 | 7 | 93 | 84 | |||||||
| Special items | — | — | — | — | 10 | — | 10 | |||||||
| Adjusted EBITDA(1) | $ | 89 | $ | 70 | $ | 94 | $ | 67 | $ | 46 | $ | 320 | $ | 329 |
(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.
Segment Special Items Included In Net Contribution to Earnings (Pretax)
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Restructuring, impairments and other charges | $ | — | $ | — | $ | — | $ | — | $ | (10 | ) | $ | — | $ | (10 | ) |
Selected Segment Items
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash spent for capital expenditures | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Segment Statistics
| Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net Sales | Real Estate | $ | 72 | $ | 47 | $ | 79 | $ | 39 | $ | 18 | $ | 237 | $ | 235 | |||||||
| (millions) | Energy and Natural Resources | 29 | 33 | 26 | 38 | 37 | 126 | 133 | ||||||||||||||
| Total | $ | 101 | $ | 80 | $ | 105 | $ | 77 | $ | 55 | $ | 363 | $ | 368 | ||||||||
| Acres Sold | Real Estate | 20,753 | 9,281 | 25,721 | 7,187 | 2,745 | 62,942 | 58,791 | ||||||||||||||
| Price per Acre | Real Estate | $ | 3,241 | $ | 4,790 | $ | 3,033 | $ | 4,202 | $ | 5,550 | $ | 3,494 | $ | 3,714 | |||||||
| Basis as a Percent of <br>Real Estate Net Sales | Real Estate | 46 | % | 28 | % | 43 | % | 33 | % | 39 | % | 39 | % | 36 | % |
Page 6 of 8
| Weyerhaeuser Company | Wood Products Segment |
|---|
Q4.2023 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | $ | 1,318 | $ | 1,500 | $ | 1,537 | $ | 1,302 | $ | 1,331 | $ | 5,657 | $ | 7,958 | |
| Costs of sales | 1,159 | 1,218 | 1,195 | 1,127 | 1,116 | 4,699 | 5,166 | ||||||||
| Gross margin | 159 | 282 | 342 | 175 | 215 | 958 | 2,792 | ||||||||
| Selling expenses | 22 | 21 | 20 | 21 | 22 | 84 | 86 | ||||||||
| General and administrative expenses | 36 | 37 | 38 | 38 | 36 | 149 | 142 | ||||||||
| Other operating costs (income), net | 6 | 6 | 7 | (3 | ) | 10 | 16 | 28 | |||||||
| Operating income and Net contribution to earnings | $ | 95 | $ | 218 | $ | 277 | $ | 119 | $ | 147 | $ | 709 | $ | 2,536 |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income | $ | 95 | $ | 218 | $ | 277 | $ | 119 | $ | 147 | $ | 709 | $ | 2,536 | ||
| Depreciation, depletion and amortization | 53 | 52 | 51 | 54 | 50 | 210 | 201 | |||||||||
| Special items | — | — | — | (14 | ) | — | (14 | ) | — | |||||||
| Adjusted EBITDA(1) | $ | 148 | $ | 270 | $ | 328 | $ | 159 | $ | 197 | $ | 905 | $ | 2,737 |
(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.
Segment Special Items Included In Net Contribution to Earnings (Pretax)
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Insurance recovery | $ | — | $ | — | $ | — | $ | (14 | ) | $ | — | $ | (14 | ) | $ | — |
Selected Segment Items
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total (increase) decrease in working capital(2) | $ | (127 | ) | $ | 40 | $ | 52 | $ | 61 | $ | 20 | $ | 26 | $ | (10 | ) | |||||
| Cash spent for capital expenditures | $ | (43 | ) | $ | (56 | ) | $ | (69 | ) | $ | (155 | ) | $ | (184 | ) | $ | (323 | ) | $ | (347 | ) |
(2) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.
Segment Statistics
| in millions, except for third party sales realizations | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Structural Lumber | Third party net sales | $ | 515 | $ | 573 | $ | 570 | $ | 465 | $ | 494 | $ | 2,123 | $ | 3,374 |
| (volumes presented | Third party sales realizations | $ | 450 | $ | 479 | $ | 481 | $ | 413 | $ | 495 | $ | 457 | $ | 724 |
| in board feet) | Third party sales volumes(3) | 1,144 | 1,196 | 1,184 | 1,125 | 996 | 4,649 | 4,658 | |||||||
| Production volumes | 1,143 | 1,164 | 1,174 | 1,091 | 938 | 4,572 | 4,513 | ||||||||
| Oriented Strand | Third party net sales | $ | 208 | $ | 215 | $ | 284 | $ | 237 | $ | 230 | $ | 944 | $ | 1,578 |
| Board | Third party sales realizations | $ | 269 | $ | 299 | $ | 416 | $ | 344 | $ | 335 | $ | 330 | $ | 553 |
| (volumes presented | Third party sales volumes(3) | 773 | 720 | 683 | 688 | 686 | 2,864 | 2,853 | |||||||
| in square feet 3/8") | Production volumes | 761 | 727 | 724 | 721 | 729 | 2,933 | 2,961 | |||||||
| Engineered Solid | Third party net sales | $ | 169 | $ | 215 | $ | 216 | $ | 183 | $ | 186 | $ | 783 | $ | 862 |
| Section | Third party sales realizations | $ | 3,643 | $ | 3,571 | $ | 3,458 | $ | 3,385 | $ | 3,743 | $ | 3,509 | $ | 3,751 |
| (volumes presented | Third party sales volumes(3) | 4.7 | 6.0 | 6.2 | 5.4 | 5.0 | 22.3 | 23.0 | |||||||
| in cubic feet) | Production volumes | 4.6 | 5.9 | 5.6 | 5.8 | 5.5 | 21.9 | 23.6 | |||||||
| Engineered | Third party net sales | $ | 87 | $ | 126 | $ | 122 | $ | 112 | $ | 102 | $ | 447 | $ | 573 |
| I-joists | Third party sales realizations | $ | 3,171 | $ | 2,901 | $ | 2,862 | $ | 2,766 | $ | 3,537 | $ | 2,902 | $ | 3,350 |
| (volumes presented | Third party sales volumes(3) | 27 | 44 | 42 | 41 | 29 | 154 | 171 | |||||||
| in lineal feet) | Production volumes | 25 | 38 | 42 | 42 | 31 | 147 | 172 | |||||||
| Softwood Plywood | Third party net sales | $ | 41 | $ | 44 | $ | 42 | $ | 39 | $ | 35 | $ | 166 | $ | 193 |
| (volumes presented | Third party sales realizations | $ | 490 | $ | 474 | $ | 488 | $ | 495 | $ | 543 | $ | 486 | $ | 679 |
| in square feet 3/8") | Third party sales volumes(3) | 83 | 94 | 86 | 79 | 66 | 342 | 285 | |||||||
| Production volumes | 74 | 84 | 77 | 75 | 62 | 310 | 259 | ||||||||
| Medium Density | Third party net sales | $ | 38 | $ | 42 | $ | 40 | $ | 35 | $ | 41 | $ | 155 | $ | 192 |
| Fiberboard | Third party sales realizations | $ | 1,314 | $ | 1,342 | $ | 1,242 | $ | 1,191 | $ | 1,310 | $ | 1,272 | $ | 1,200 |
| (volumes presented | Third party sales volumes(3) | 29 | 31 | 33 | 29 | 31 | 122 | 160 | |||||||
| in square feet 3/4") | Production volumes | 34 | 33 | 34 | 31 | 31 | 132 | 161 |
(3) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.
Page 7 of 8
| Weyerhaeuser Company | Unallocated Items |
|---|
Q4.2023 Analyst Package
Preliminary results (unaudited)
Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses and interest income and other.
Net Charge to Earnings
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unallocated corporate function and variable compensation expense | $ | (27 | ) | $ | (32 | ) | $ | (33 | ) | $ | (35 | ) | $ | (36 | ) | $ | (127 | ) | $ | (139 | ) |
| Liability classified share-based compensation | — | (2 | ) | 2 | (2 | ) | (1 | ) | (2 | ) | 4 | ||||||||||
| Foreign exchange (loss) gain | (1 | ) | 2 | — | — | (2 | ) | 1 | 10 | ||||||||||||
| Elimination of intersegment profit in inventory and LIFO | 9 | 3 | (4 | ) | 3 | 18 | 11 | (21 | ) | ||||||||||||
| Other, net | (13 | ) | (26 | ) | (23 | ) | (43 | ) | (4 | ) | (105 | ) | (56 | ) | |||||||
| Operating loss | (32 | ) | (55 | ) | (58 | ) | (77 | ) | (25 | ) | (222 | ) | (202 | ) | |||||||
| Non-operating pension and other post-employment benefit costs | (9 | ) | (12 | ) | (12 | ) | (12 | ) | (216 | ) | (45 | ) | (254 | ) | |||||||
| Interest income and other | 12 | 18 | 24 | 22 | 16 | 76 | 25 | ||||||||||||||
| Net charge to earnings | $ | (29 | ) | $ | (49 | ) | $ | (46 | ) | $ | (67 | ) | $ | (225 | ) | $ | (191 | ) | $ | (431 | ) |
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization(1)
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating loss | $ | (32 | ) | $ | (55 | ) | $ | (58 | ) | $ | (77 | ) | $ | (25 | ) | $ | (222 | ) | $ | (202 | ) |
| Depreciation, depletion and amortization | 2 | 1 | 2 | 2 | 1 | 7 | 6 | ||||||||||||||
| Special items | — | 11 | — | 27 | — | 38 | — | ||||||||||||||
| Adjusted EBITDA(1) | $ | (30 | ) | $ | (43 | ) | $ | (56 | ) | $ | (48 | ) | $ | (24 | ) | $ | (177 | ) | $ | (196 | ) |
(1) See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.
Unallocated Special Items Included in Net Charge to Earnings (Pretax)
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Environmental remediation charge | $ | — | $ | 11 | $ | — | $ | — | $ | — | $ | 11 | $ | — |
| Legal expense | — | — | — | 27 | — | 27 | — | |||||||
| Special items included in operating loss | — | 11 | — | 27 | — | 38 | — | |||||||
| Pension settlement charge | — | — | — | — | 205 | — | 205 | |||||||
| Special items included in net charge to earnings | $ | — | $ | 11 | $ | — | $ | 27 | $ | 205 | $ | 38 | $ | 205 |
Unallocated Selected Items
| in millions | Q1.2023 | Q2.2023 | Q3.2023 | Q4.2023 | Q4.2022 | YTD.2023 | YTD.2022 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash spent for capital expenditures | $ | (2 | ) | $ | (3 | ) | $ | (4 | ) | $ | (4 | ) | $ | (1 | ) | $ | (13 | ) | $ | (8 | ) |
Page 8 of 8