DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 05, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | WEYERHAEUSER CO | ||
Trading Symbol | WY | ||
Entity Central Index Key | 106,535 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 756,097,841 | ||
Entity Public Float | $ 25 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | $ 7,196 | $ 6,365 | $ 5,246 |
Costs of products sold | 5,298 | 4,980 | 4,153 |
Gross margin | 1,898 | 1,385 | 1,093 |
Selling expenses | 87 | 89 | 99 |
General and administrative expenses | 310 | 338 | 252 |
Research and development expenses | 14 | 19 | 18 |
Charges for integration and restructuring, closures and asset impairments (Note 17) | 194 | 170 | 39 |
Charges for product remediation (Note 18) | 290 | 0 | 0 |
Other operating costs (income), net (Note 19) | (128) | (53) | 41 |
Operating income | 1,131 | 822 | 644 |
Equity earnings from joint ventures (Note 8) | 1 | 22 | 0 |
Non-Operating pension and other postretirement benefit (costs) credits | (62) | 48 | 14 |
Interest income and other | 39 | 43 | 36 |
Interest expense, net of capitalized interest | (393) | (431) | (341) |
Earnings from continuing operations before income taxes | 716 | 504 | 353 |
Income taxes (Note 20) | (134) | (89) | 58 |
Earnings from continuing operations | 582 | 415 | 411 |
Earnings from discontinued operations, net of income taxes (Note 3) | 0 | 612 | 95 |
Net earnings | 582 | 1,027 | 506 |
Dividends on preference shares | 0 | (22) | (44) |
Net earnings attributable to Weyerhaeuser common shareholders | $ 582 | $ 1,005 | $ 462 |
Basic earnings per share attributable to Weyerhaeuser common shareholders (Note 5): | |||
Continuing operations | $ 0.77 | $ 0.55 | $ 0.71 |
Discontinued operations | 0 | 0.85 | 0.18 |
Net earnings per share | 0.77 | 1.40 | 0.89 |
Diluted earnings per share attributable to Weyerhaeuser common shareholders (Note 5): | |||
Continuing operations | 0.77 | 0.55 | 0.71 |
Discontinued operations | 0 | 0.84 | 0.18 |
Net earnings per share | 0.77 | 1.39 | 0.89 |
Dividends paid per common share | $ 1.25 | $ 1.24 | $ 1.20 |
Weighted average shares outstanding (in thousands) (Note 5): | |||
Basic | 753,085 | 718,560 | 516,371 |
Diluted | 756,666 | 722,401 | 519,618 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Comprehensive income: | |||
Net earnings | $ 582 | $ 1,027 | $ 506 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 32 | 25 | (97) |
Changes in unamortized prior service cost, net of tax benefit of $2 in 2017, $0 in 2016 and $1 in 2015 | (5) | (4) | (4) |
Unrealized gains on available-for-sale securities | 2 | 1 | 0 |
Changes in unamortized net pension and other postretirement benefit gain (loss), net of tax expense (benefit) of ($2) in 2017, ($151) in 2016, and $131 in 2015 | (132) | (269) | 282 |
Total comprehensive income | $ 479 | $ 780 | $ 687 |
CONSOLIDATED STATEMENT OF COMP4
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in unamortized net pension and other postretirement benefit gain (loss), tax expense (benefit) | $ (2) | $ (151) | $ 131 |
Changes in unamortized prior service cost, tax expense (benefit) | $ (2) | $ 0 | $ (1) |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 824 | $ 676 |
Receivables, less discounts and allowances of $1 and $1 | 396 | 390 |
Receivables for taxes | 14 | 84 |
Inventories (Note 6) | 383 | 358 |
Prepaid expenses and other current assets | 98 | 114 |
Total current assets | 1,715 | 1,622 |
Property and equipment, less accumulated depreciation of $3,338 and $3,306 (Note 7) | 1,618 | 1,562 |
Construction in progress | 225 | 213 |
Timber and timberlands at cost, less depletion | 12,954 | 14,299 |
Minerals and mineral rights, less depletion | 308 | 319 |
Investments in and advances to joint ventures (Note 8) | 31 | 56 |
Goodwill | 40 | 40 |
Deferred tax assets (Note 20) | 268 | 293 |
Other assets | 285 | 224 |
Restricted financial investments held by variable interest entities (Note 8) | 615 | 615 |
Total assets | 18,059 | 19,243 |
LIABILITIES AND EQUITY | ||
Current maturities of long-term debt (Notes 12 and 13) | 62 | 281 |
Current debt (nonrecourse to the company) held by variable interest entities (Note 8) | 209 | 0 |
Accounts payable | 249 | 233 |
Accrued liabilities (Note 10) | 645 | 692 |
Total current liabilities | 1,165 | 1,206 |
Long-term debt (Notes 12 and 13) | 5,930 | 6,329 |
Long-term debt (nonrecourse to the company) held by variable interest entities (Note 8) | 302 | 511 |
Deferred pension and other postretirement benefits (Note 9) | 1,487 | 1,322 |
Deposit received from contribution of timberlands to related party (Note 8) | 0 | (426) |
Other liabilities | 276 | 269 |
Total liabilities | 9,160 | 10,063 |
Weyerhaeuser shareholders’ interest (Notes 15 and 16): | ||
Common shares: $1.25 par value; authorized 1,360,000,000 shares; issued and outstanding: 755,222,727 and 748,528,131 shares, | 944 | 936 |
Other capital | 8,439 | 8,282 |
Retained earnings | 1,078 | 1,421 |
Cumulative other comprehensive loss | (1,562) | (1,459) |
Total equity | 8,899 | 9,180 |
Total liabilities and equity | $ 18,059 | $ 19,243 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables, discounts and allowances | $ 1 | $ 1 |
Property and equipment, accumulated depreciation | $ 3,338 | $ 3,306 |
Common shares, par value | $ 1.25 | $ 1.25 |
Common shares, authorized | 1,360,000,000 | 1,360,000,000 |
Common shares, issued | 755,222,727 | 748,528,131 |
Common shares, outstanding | 755,222,727 | 748,528,131 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operations: | |||
Net earnings | $ 582 | $ 1,027 | $ 506 |
Noncash charges (credits) to income: | |||
Depreciation, depletion and amortization | 521 | 565 | 479 |
Basis of real estate sold | 81 | 109 | 18 |
Deferred income taxes, net | 44 | (159) | 0 |
Pension and other postretirement benefits | 97 | 5 | 42 |
Share-based compensation expense (Note 16) | 40 | 60 | 31 |
Charges for impairment of assets | 154 | 37 | 15 |
Equity (earnings) loss from joint ventures (Note 8) | (1) | (18) | 105 |
Net gains on disposition of discontinued and other operations (Note 3) | (1) | (789) | 0 |
Net gains on sale of nonstrategic assets | (16) | (73) | (38) |
Net gains on sale of southern timberlands (Note 8) | (99) | 0 | 0 |
Foreign exchange transaction (gains) losses (Note 19) | (1) | (5) | 47 |
Change in, net of acquisition: | |||
Receivables less allowances | (35) | (54) | 17 |
Receivable / payable for taxes | (50) | 106 | (5) |
Inventories | (39) | 61 | 10 |
Prepaid expenses | (12) | 5 | 3 |
Accounts payable and accrued liabilities | 106 | 11 | (35) |
Pension and postretirement contributions / benefit payments | (78) | (99) | (83) |
Distributions of earnings received from joint ventures (Note 8) | 1 | 14 | 15 |
Other | (93) | (68) | (52) |
Net cash from operations | 1,201 | 735 | 1,075 |
Cash flows from investing activities: | |||
Capital expenditures for property and equipment | (358) | (451) | (443) |
Capital expenditures for timberlands reforestation | (61) | (59) | (40) |
Acquisition of timberlands | 0 | (10) | (36) |
Proceeds from disposition of discontinued and other operations (Note 3) | 403 | 2,486 | 0 |
Proceeds from sale of nonstrategic assets | 26 | 104 | 19 |
Proceeds from sale of southern timberlands (Note 8) | 203 | 0 | 0 |
Proceeds from redemption of ownership in related party (Note 8) | 108 | 0 | 0 |
Proceeds from contribution of timberlands to related party (Note 8) | 0 | 440 | 0 |
Distributions of investment received from joint ventures (Note 8) | 25 | 46 | 0 |
Other | 21 | 3 | 13 |
Net cash from investing activities | 367 | 2,559 | (487) |
Cash flows from financing activities: | |||
Cash dividends on common shares | (941) | (932) | (619) |
Cash dividends on preference shares | 0 | (22) | (44) |
Proceeds from issuance of long-term debt (Note 12) | 225 | 1,698 | 0 |
Payments on long-term debt (Note 12) | (831) | (2,423) | 0 |
Proceeds from borrowings on line of credit (Note 11) | 100 | 0 | 0 |
Payments on line of credit (Note 11) | (100) | 0 | 0 |
Proceeds from exercise of stock options | 128 | 61 | 34 |
Repurchase of common stock | 0 | (2,003) | (518) |
Other | (1) | (9) | (9) |
Net cash from financing activities | (1,420) | (3,630) | (1,156) |
Net change in cash and cash equivalents | 148 | (336) | (568) |
Cash and cash equivalents from continuing operations at beginning of year | 676 | 1,011 | 1,577 |
Cash and cash equivalents from continuing operations at end of year | 824 | 676 | 1,011 |
Cash and cash equivalents from discontinued operations at beginning of year | 0 | 1 | 3 |
Cash and cash equivalents from discontinued operations at end of year | 0 | 0 | 1 |
Cash and cash equivalents at beginning of period | 676 | 1,012 | 1,580 |
Cash and cash equivalents at end of year | 824 | 676 | 1,012 |
Cash paid (received) during the year for: | |||
Interest, net of amounts capitalized of $9 in 2017, $8 in 2016 and $7 in 2015 | 381 | 446 | 347 |
Income taxes | $ 169 | $ 485 | $ 14 |
CONSOLIDATED STATEMENT OF CASH8
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest, amount capitalized | $ 9 | $ 8 | $ 7 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Mandatory convertible preference shares, series A: | Common shares: | Other capital: | Retained earnings: | Cumulative other comprehensive loss: | Total equity: | Plum CreekCommon shares: | Plum CreekOther capital: |
Balance at beginning of year at Dec. 31, 2014 | $ 14 | $ 656 | $ 4,519 | $ 1,508 | $ (1,393) | ||||
Conversion to common shares (Note 15) | 0 | ||||||||
Preference shares converted to common shares (Note 15) | 0 | ||||||||
Issued for exercise of stock options | 2 | 32 | |||||||
Repurchase of common shares (Note 15) | (20) | (498) | |||||||
Release of vested restricted stock units | 0 | ||||||||
Share-based compensation | 32 | ||||||||
Plum Creek acquisition | $ 0 | $ 0 | |||||||
Other transactions, net | (5) | ||||||||
Net earnings | $ 506 | 506 | |||||||
Dividends on common shares | (621) | ||||||||
Adjustments related to new accounting pronouncements (Note 1) | 0 | ||||||||
Cash dividends on preference shares | (44) | ||||||||
Foreign currency translation adjustments | (97) | (97) | |||||||
Changes in unamortized net pension and other postretirement benefit gain (loss) (Note 9) | 282 | 282 | |||||||
Changes in unamortized prior service credit (cost) (Note 9) | (4) | (4) | |||||||
Unrealized gains on available-for-sale securities | 0 | ||||||||
Balance at end of year at Dec. 31, 2015 | 14 | 638 | 4,080 | 1,349 | (1,212) | $ 4,869 | |||
Conversion to common shares (Note 15) | 14 | ||||||||
Preference shares converted to common shares (Note 15) | 29 | ||||||||
Issued for exercise of stock options | 3 | 61 | |||||||
Repurchase of common shares (Note 15) | (85) | (1,918) | |||||||
Release of vested restricted stock units | 2 | ||||||||
Share-based compensation | 35 | ||||||||
Plum Creek acquisition | 349 | 6,046 | |||||||
Other transactions, net | (22) | ||||||||
Net earnings | 1,027 | 1,027 | |||||||
Dividends on common shares | (933) | ||||||||
Adjustments related to new accounting pronouncements (Note 1) | 0 | ||||||||
Cash dividends on preference shares | (22) | ||||||||
Foreign currency translation adjustments | 25 | 25 | |||||||
Changes in unamortized net pension and other postretirement benefit gain (loss) (Note 9) | (269) | (269) | |||||||
Changes in unamortized prior service credit (cost) (Note 9) | (4) | (4) | |||||||
Unrealized gains on available-for-sale securities | 1 | ||||||||
Balance at end of year at Dec. 31, 2016 | 9,180 | 0 | 936 | 8,282 | 1,421 | (1,459) | 9,180 | ||
Conversion to common shares (Note 15) | 0 | ||||||||
Preference shares converted to common shares (Note 15) | 0 | ||||||||
Issued for exercise of stock options | 7 | 128 | |||||||
Repurchase of common shares (Note 15) | 0 | 0 | |||||||
Release of vested restricted stock units | 1 | ||||||||
Share-based compensation | 35 | ||||||||
Plum Creek acquisition | $ 0 | $ 0 | |||||||
Other transactions, net | (6) | ||||||||
Net earnings | 582 | 582 | |||||||
Dividends on common shares | (944) | ||||||||
Adjustments related to new accounting pronouncements (Note 1) | 19 | ||||||||
Cash dividends on preference shares | 0 | ||||||||
Foreign currency translation adjustments | 32 | 32 | |||||||
Changes in unamortized net pension and other postretirement benefit gain (loss) (Note 9) | (132) | (132) | |||||||
Changes in unamortized prior service credit (cost) (Note 9) | (5) | (5) | |||||||
Unrealized gains on available-for-sale securities | 2 | ||||||||
Balance at end of year at Dec. 31, 2017 | $ 8,899 | $ 0 | $ 944 | $ 8,439 | $ 1,078 | $ (1,562) | $ 8,899 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our significant accounting policies describe: • our election to be taxed as a real estate investment trust, • how we report our results, • changes in how we report our results and • how we account for various items. OUR ELECTION TO BE TAXED AS A REAL ESTATE INVESTMENT TRUST (REIT) Starting with our 2010 fiscal year, we elected to be taxed as a REIT. REIT income can be distributed to shareholders without first paying corporate level tax, substantially eliminating the double taxation on income. We expect to derive most of our REIT income from investments in timberlands, including the sale of standing timber through pay-as-cut sales contracts and lump sum timber deeds. We were no longer subject to the REIT built-in gains tax as of December 31, 2014. Our built-in gains tax period expired in 2015 due to a change in U.S. tax law that statutorily shortened the built-in gains tax period to 5 years from 10 years. This means we are no longer subject to federal corporate level income taxes on sales of REIT property that had a fair market value in excess of tax basis when we converted to a REIT on January 1, 2010. We continue to be required to pay federal corporate income taxes on earnings of our Taxable REIT Subsidiary (TRS), which includes our Wood Products segment and portions of our Timberlands and Real Estate, Energy and Natural Resources (Real Estate & ENR) segments. HOW WE REPORT OUR RESULTS Our report includes: • consolidated financial statements, • our business segments, • foreign currency translation, • estimates, and • fair value measurements. Consolidated Financial Statements Our consolidated financial statements provide an overall view of our results and financial condition. They include our accounts and the accounts of entities that we control, including: • majority-owned domestic and foreign subsidiaries and • variable interest entities in which we are the primary beneficiary. They do not include our intercompany transactions and accounts, which are eliminated, and noncontrolling interests are presented as a separate component of equity. We account for investments in and advances to unconsolidated equity affiliates using the equity method. We record our share of equity in net earnings of equity affiliates within "Equity earnings from joint ventures" in our Consolidated Statement of Operations in the period in which the earnings are recorded by our equity affiliates. Throughout these Notes to Consolidated Financial Statements, unless specified otherwise, references to “Weyerhaeuser,” "the company," “we” and “our” refer to the consolidated company. Our Business Segments Reportable business segments are determined based on the company’s "management approach," as defined by Financial Accounting Standards Board (FASB) ASC 280, “Segment Reporting.” The management approach is based on the way the chief operating decision maker organizes the segments within a company for making decisions about resources to be allocated and assessing their performance. During fiscal year 2016, the company's chief operating decision maker changed the information regularly reviewed when making decisions to allocate resources and assess performance. Since this change, the company reports its financial performance based on three business segments: Timberlands, Real Estate & ENR, and Wood Products. Prior to revising our segment structure, activities related to the Real Estate & ENR business segment were reported as part of the Timberlands business segment. Amounts for all periods presented have been reclassified throughout the consolidated financial statements and disclosures to conform to the new segment structure. We are principally engaged in: • growing and harvesting timber; • manufacturing, distributing and selling products made from trees; • maximizing the value of every acre we own through the sale of higher and better use (HBU) properties; and • monetizing reserves of minerals, oil, gas, coal, and other natural resources on our timberlands. Our business segments are organized based primarily on products and services. Our Business Segments and Products SEGMENT PRODUCTS AND SERVICES Timberlands Logs, timber, and leased recreational access Real Estate & ENR Sales of timberlands; rights to explore for and extract hard minerals, construction materials, oil and gas production, wind and coal; and equity interests in our Real Estate Development Ventures Wood Products Softwood lumber, engineered wood products, structural panels, medium density fiberboard and building materials distribution We also transfer raw materials, semi-finished materials and end products among our business segments. Because of this intracompany activity, accounting for our business segments involves: • pricing products transferred between our business segments at current market values and • allocating joint conversion and common facility costs according to usage by our business segment product lines. Gains or charges not related to or allocated to an individual operating segment are held in Unallocated Items. This includes a portion of items such as: share-based compensation; pension and postretirement costs; foreign exchange transaction gains and losses associated with financing; the elimination of intersegment profit in inventory and the LIFO reserve. Foreign Currency Translation Local currencies are the functional currencies for most of our operations outside the U.S. We translate foreign currencies into U.S. dollars in two ways: • assets and liabilities — at the exchange rates in effect as of our balance sheet date; and • revenues and expenses — at average monthly exchange rates throughout the year. Estimates We prepare our financial statements according to U.S. generally accepted accounting principles (U.S. GAAP). This requires us to make estimates and assumptions during our reporting periods and at the date of our financial statements. The estimates and assumptions affect our: • reported amounts of assets, liabilities and equity; • disclosure of contingent assets and liabilities; and • reported amounts of revenues and expenses. While we do our best in preparing these estimates, actual results can and do differ from those estimates and assumptions. Fair Value Measurements We use a fair value hierarchy in accounting for certain nonfinancial assets and liabilities including: • long-lived assets (asset groups) measured at fair value for an impairment assessment; • reporting units measured at fair value in the first step of a goodwill impairment test; • nonfinancial assets and nonfinancial liabilities measured at fair value in the second step of a goodwill impairment assessment; • assets acquired and liabilities assumed in a business acquisition; and • asset retirement obligations initially measured at fair value. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: • Level 1 — Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs are: – quoted prices for similar assets or liabilities in an active market; – quoted prices for identical or similar assets or liabilities in markets that are not active; or – inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data. • Level 3 — Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. CHANGES IN HOW WE REPORT OUR RESULTS Changes in how we report our results come from: • reclassification of certain balances and results from prior years to make them consistent with our current reporting and • accounting changes made upon our adoption of new accounting guidance Reclassifications We have reclassified certain balances and results from the prior year to be consistent with our 2017 reporting. This makes year-to-year comparisons easier. Our reclassifications had no effect on consolidated net earnings or equity. Our reclassifications present the adoption of new accounting pronouncements on our Consolidated Statement of Operations and in the related footnotes. Refer to discussion of new accounting pronouncements below. New Accounting Pronouncements Revenue Recognition In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, a comprehensive new revenue recognition model that requires an entity to recognize revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In August 2015, FASB issued ASU 2015-14, which deferred the effective date for an additional year. In March 2016, FASB issued ASU 2016-08, which does not change the core principle of the guidance; however, it does clarify the implementation guidance on principal versus agent considerations. In April 2016, FASB issued ASU 2016-10, which clarifies two aspects of ASU 2014-09: identifying performance obligations and the licensing implementation guidance. In May 2016, FASB issued ASU 2016-12, which amends ASU 2014-09 to provide improvements and practical expedients to the new revenue recognition model. In December 2016, the FASB issued ASU 2016-20, which amends ASU 2014-09 for technical corrections and to correct for unintended application of the guidance. In February 2017, FASB issued ASU 2017-05, which clarifies the scope of ASC 610-20 and impacts accounting for partial sales of nonfinancial assets. We have adopted and implemented the new revenue recognition guidance effective January 1, 2018. The new standard is required to be applied retrospectively to each prior reporting period presented (full retrospective transition method) or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application (cumulative effect method). We have adopted using the cumulative effect method. The adoption of the new revenue recognition guidance will not materially impact our Consolidated Statement of Operations , Consolidated Balance Sheet , or Consolidated Statement of Cash Flows . We plan to add expanded disclosures, beginning in first quarter 2018. Inventory Valuation Methods In July 2015, FASB issued ASU 2015-11, which simplifies the measurement of inventories valued under most methods, including our inventories valued under FIFO – the first-in, first-out – and moving average cost methods. Inventories valued under LIFO – the last-in, first-out method – are excluded. Under this new guidance, inventories valued under these methods would be valued at the lower of cost or net realizable value, with net realizable value defined as the estimated selling price less reasonable costs to sell the inventory. The new guidance is effective prospectively for fiscal periods starting after December 15, 2016, and early adoption is permitted. We adopted on January 1, 2017, and determined this pronouncement does not have a material impact on our consolidated financial statements and related disclosures. Lease Recognition In February 2016, FASB issued ASU 2016-02, which requires lessees to recognize assets and liabilities for the rights and obligations created by those leases and requires both capital and operating leases to be recognized on the balance sheet. The new guidance is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted. We expect to adopt on January 1, 2019. We are still evaluating certain aspects of the revised guidance and subsequent revisions either made or being contemplated by the FASB, including application of the available practical expedients. We expect adoption to result in the recognition of the present value of the future commitments on operating leases disclosed in Note 14: Legal Proceedings, Commitments and Contingencies on our Consolidated Balance Sheet . Intra-Entity Transfers (other than inventory) In October 2016, FASB issued ASU 2016-16, which requires immediate recognition of the income tax consequences upon intra-entity transfers of assets other than inventory. The new guidance is effective for annual periods beginning after December 15, 2017, and early adoption is permitted. We adopted this accounting standard update on January 1, 2017. As a result of this adoption, our opening balance sheet was adjusted through "Retained Earnings" by $19 million for prior period intra-entity transfers. Adoption of this standard did not have a material impact on our Consolidated Statement of Cash Flows or Consolidated Statement of Operations . Pension and Other Post Retirement Benefit (Costs)/Credits In March 2017, FASB issued ASU 2017-07, which requires that an employer report the service cost component of pension and other postretirement benefit costs in the Consolidated Statement of Operations in the same line item or items as other compensation costs arising from services rendered by the pertinent employees. This requirement is consistent with how we have historically presented our pension service costs. The other requirement of ASU 2017-07 is to present the remaining components of pension and other postretirement benefit costs (i.e., interest, expected return on plan assets, amortization of actuarial gains or losses, and amortization of prior service credits or costs) in the Consolidated Statement of Operations separately from the service cost component and outside a subtotal of income from operations. The new guidance is effective for annual periods beginning after December 15, 2017, and early adoption is permitted. We adopted this accounting standard as of January 1, 2017. As a result, we reclassified amounts related to other components of pension and other postretirement benefit costs from their prior financial statements captions ("Costs of products sold," "General and administrative expenses," and "Other operating costs (income), net") into a new financial statement caption titled "Non-operating pension and other postretirement benefit (costs) credits" in our Consolidated Statement of Operations . The adoption of ASU 2017-07 did not impact "Net earnings," nor did it impact our Consolidated Balance Sheet . Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, FASB issued ASU 2018-02, which allows for the reclassification of certain income tax effects related to the Tax Cuts and Jobs Act between “Accumulated other comprehensive income” and “Retained earnings.” This ASU relates to the requirement that adjustments to deferred tax liabilities and assets related to a change in tax laws or rates to be included in “Income from continuing operations”, even in situations where the related items were originally recognized in “Other comprehensive income” (rather than in “Income from continuing operations”). The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Adoption of this ASU is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the tax laws or rates were recognized. We are still evaluating certain aspects of this ASU as well as the related impacts it may have on our financial statements. HOW WE ACCOUNT FOR VARIOUS ITEMS This section provides information about how we account for certain key items related to: • capital investments, • financing our business and • operations. ITEMS RELATED TO CAPITAL INVESTMENTS Key items related to accounting for capital investments pertain to property and equipment, timber and timberlands, impairment of long-lived assets and goodwill. Property and Equipment We maintain property accounts on an individual asset basis. Here is how we handle major items: • Improvements to and replacements of major units of property are capitalized. • Maintenance, repairs and minor replacements are expensed. • Depreciation is calculated using a straight-line method at rates based on estimated service lives. • We capitalize costs associated with logging roads that we intend to utilize for a period longer than one year. These roads are then amortized over an estimated service life. • Cost and accumulated depreciation of property sold or retired are removed from the accounts and the gain or loss is included in earnings. Timber and Timberlands We carry timber and timberlands at cost less depletion. Depletion refers to the carrying value of timber that is harvested, lost as a result of casualty, or sold. Key activities affecting how we account for timber and timberlands include: • reforestation, • depletion and • forest management in Canada. Reforestation. Generally, we capitalize initial site preparation and planting costs as reforestation. Generally, we expense costs after the first planting as they are incurred or over the period of expected benefit. These costs include: • fertilization, • vegetation and insect control, • pruning and precommercial thinning, • property taxes, and • interest. Accounting practices for these costs do not change when timber becomes merchantable and harvesting starts. Timber depletion. To determine depletion rates, we divide the net carrying value of timber by the related volume of timber estimated to be available over the growth cycle. To determine the growth cycle volume of timber, we consider: • regulatory and environmental constraints, • our management strategies, • inventory data improvements, • growth rate revisions and recalibrations and • known dispositions and inoperable acres. We include the cost of timber harvested in the carrying values of raw materials and product inventories. As these inventories are sold to third parties, we include them in the cost of products sold. Forest Management in Canada. We manage timberlands under long-term licenses in various Canadian provinces that are: • granted by the provincial governments; • granted for initial periods of 15 to 25 years; and • renewable provided we meet reforestation, operating and management guidelines. Calculation of the fees we pay on the timber we harvest: • varies from province to province, • is tied to product market pricing and • depends upon the allocation of land management responsibilities in the license. Impairment of Long-Lived Assets We review long-lived assets — including certain identifiable intangibles — for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Impaired assets held for use are written down to fair value. Impaired assets held for sale are written down to fair value less cost to sell. We determine fair value based on: • appraisals, • market pricing of comparable assets, • discounted value of estimated cash flows from the asset and • replacement values of comparable assets. Goodwill Goodwill is the purchase price minus the fair value of net assets acquired when we buy another entity. We assess goodwill for impairment: • using a fair-value-based approach and • at least annually — at the beginning of the fourth quarter. In 2017 , the fair value of the reporting unit with goodwill substantially exceeded its carrying value. ITEMS RELATED TO FINANCING OUR BUSINESS Key items related to financing our business include financial instruments, cash and cash equivalents, accounts payable and concentration of risk. Financial Instruments We estimate the fair value of financial instruments where appropriate. The assumptions we use — including the discount rate and estimates of cash flows — can significantly affect our fair-value amounts. Our fair values are estimates and may not match the amounts we would realize upon sale or settlement of our financial positions. Cash Equivalents Cash equivalents are investments with original maturities of 90 days or less. We state cash equivalents at cost, which approximates market. Accounts Payable Our banking system replenishes our major bank accounts daily as checks we have issued are presented for payment. As a result, we may have negative book cash balances due to outstanding checks that have not yet been paid by the bank. These negative balances would be included in "Accounts payable" on our Consolidated Balance Sheet . Changes in these negative cash balances would be reported as financing activities in our Consolidated Statement of Cash Flows . We had no negative book cash balances as of December 31, 2017 , and December 31, 2016 . Concentration of Risk We disclose customers that represent a concentration of risk. As of December 31, 2017 , and December 31, 2016 , no customer accounted for 10 percent or more of our net sales. ITEMS RELATED TO OPERATIONS Key items related to operations include revenue recognition, inventories, shipping and handling costs, income taxes, share-based compensation, pension and other postretirement plans, and environmental remediation. Revenue Recognition Operations recognizes revenue when title and the risk of loss transfers to the customer, in general this is upon shipment to customers. For certain export sales, revenue is recognized when title transfers at the foreign port. For timberland sales, we recognize revenue when title and possession have been transferred to the buyer and all other criteria for sale and profit recognition have been satisfied. Inventories We state inventories at the lower of cost or net realizable value. Cost includes labor, materials and production overhead. LIFO — the last-in, first-out method — applies to major inventory products held at our U.S. domestic locations. We began to use the LIFO method for domestic products in the 1940s as required to conform with the tax method elected. Subsequent acquisitions of entities added new products under the FIFO — the first-in, first-out method — or moving average cost methods that have continued under those methods. The FIFO or moving average cost methods applies to the balance of our domestic raw material and product inventories as well as for all material and supply inventories and all foreign inventories. Shipping and Handling Costs We classify shipping and handling costs in "Costs of products sold" on our Consolidated Statement of Operations . Income Taxes We account for income taxes under the asset and liability method. Unrecognized tax benefits represent potential future funding obligations to taxing authorities if uncertain tax positions the company has taken on previously filed tax returns are not sustained. In accordance with the company’s accounting policy, accrued interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. We recognize deferred tax assets and liabilities to reflect: • future tax consequences due to differences between the carrying amounts for financial reporting purposes and the tax bases of certain items and • operating loss and tax credit carryforwards. To measure deferred tax assets and liabilities, we: • determine when the differences between the carrying amounts and tax bases of affected items are expected to be recovered or resolved and • use enacted tax rates expected to apply to taxable income in those years. Share-Based Compensation We generally measure the fair value of share-based awards on the dates they are granted or modified. These measurements establish the cost of the share-based awards for accounting purposes. We then recognize the cost of share-based awards in our Consolidated Statement of Operations over each employee’s required service period. Note 16: Share-Based Compensation provides more information about our share-based compensation. Pension and Other Postretirement Benefit Plans We recognize the overfunded or underfunded status of our defined benefit pension and other postretirement plans on our Consolidated Balance Sheet and recognize changes in the funded status through comprehensive income (loss) in the year in which the changes occur. Actuarial valuations determine the amount of the pension and other postretirement benefit obligations and the net periodic benefit cost we recognize. The net periodic benefit cost includes: • cost of benefits provided in exchange for employees’ services rendered during the year; • interest cost of the obligations; • expected long-term return on plan assets; • gains or losses on plan settlements and curtailments; • amortization of prior service costs and plan amendments over the average remaining service period of the active employee group covered by the plans or the average remaining life expectancy in situations where the plan participants affected by the plan amendment are inactive; and • amortization of cumulative unrecognized net actuarial gains and losses — generally in excess of 10 percent of the greater of the benefit obligation or market-related value of plan assets at the beginning of the year — over the average remaining service period of the active employee group covered by the plans or the average remaining life expectancy in situations where the plan participants are inactive. Pension plans. We have pension plans covering most of our employees. Determination of benefits differs for salaried, hourly and union employees: • Salaried employee benefits are based on each employee’s highest monthly earnings for five consecutive years during the final 10 years before retirement. • Hourly and union employee benefits generally are stated amounts for each year of service. • Union employee benefits are set through collective-bargaining agreements. We contribute to our U.S. and Canadian pension plans according to established funding standards. The funding standards for the plans are: • U.S. pension plans — according to the Employee Retirement Income Security Act of 1974; and • Canadian pension plans — according to the applicable provincial pension act and the Income Tax Act. Postretirement benefits other than pensions. We provide certain postretirement health care and life insurance benefits for some retired employees. In some cases, we pay a portion of the cost of the benefit. Note 9: Pension and Other Postretirement Benefit Plans provides additional information about changes made in our postretirement benefit plans during 2017 and 2016 . Environmental Remediation We accrue losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when the recovery is deemed probable and does not exceed the amount of losses previously recorded. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2017 | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Our business segments and how we account for those segments are discussed in Note 1: Summary of Significant Accounting Policies . This note provides key financial data by business segment. KEY FINANCIAL DATA BY BUSINESS SEGMENT Sales and Contribution (Charge) to Earnings DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS REAL ESTATE (1) WOOD UNALLOCATED ITEMS (2) AND INTERSEGMENT ELIMINATIONS CONSOLIDATED Sales to unaffiliated customers 2017 $ 1,942 $ 280 $ 4,974 $ — $ 7,196 2016 $ 1,805 $ 226 $ 4,334 $ — $ 6,365 2015 $ 1,273 $ 101 $ 3,872 $ — $ 5,246 Intersegment sales 2017 $ 762 $ 1 $ — $ (763 ) $ — 2016 $ 840 $ 1 $ 68 $ (909 ) $ — 2015 $ 830 $ — $ 82 $ (912 ) $ — Contribution (charge) to earnings from continuing operations 2017 $ 532 $ 146 $ 569 $ (138 ) $ 1,109 2016 $ 499 $ 55 $ 512 $ (131 ) $ 935 2015 $ 470 $ 79 $ 258 $ (113 ) $ 694 (1) The Real Estate & ENR segment includes the equity earnings from, investments in and advances to our Real Estate Development Ventures (as defined and described in Note 8: Related Parties ), which are accounted for under the equity method. (2) 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, equity earnings from our Timberland Venture (as defined and described in Note 8: Related Parties ), the elimination of intersegment profit in inventory and the LIFO reserve. As a result of reclassifying our former Cellulose Fibers segment as discontinued operations, Unallocated items also includes retained indirect corporate overhead costs previously allocated to the former segment. Management evaluates segment performance based on the contributions to earnings of the respective segments. An analysis and reconciliation of our business segment information to the consolidated financial statements follows: Reconciliation of Contribution to Earnings to Net Earnings DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Net contribution to earnings from continuing operations $ 1,109 $ 935 $ 694 Net contribution to earnings from discontinued operations — 957 156 Total contribution to earnings 1,109 1,892 850 Interest expense, net of capitalized interest (1) (393 ) (436 ) (347 ) Income before income taxes (1) 716 1,456 503 Income taxes (1) (134 ) (429 ) 3 Net earnings $ 582 $ 1,027 $ 506 (1) Results shown for 2016 and 2015 include amounts for both continuing and discontinued operations. Refer to Note 3: Discontinued Operations and Other Divestitures for further information. Additional Financial Information DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS REAL ESTATE & ENR WOOD PRODUCTS UNALLOCATED ITEMS CONSOLIDATED Depreciation, depletion and amortization 2017 $ 356 $ 15 $ 145 $ 5 $ 521 2016 $ 366 $ 13 $ 129 $ 4 $ 512 2015 $ 208 $ 1 $ 106 $ 10 $ 325 Net pension and postretirement cost (credit) (1) 2017 $ 7 $ 1 $ 23 $ 66 $ 97 2016 $ 8 $ — $ 22 $ (43 ) $ (13 ) 2015 $ 9 $ — $ 27 $ (11 ) $ 25 Charges for integration and restructuring, closures and asset impairments (2) 2017 $ 147 $ — $ 13 $ 34 $ 194 2016 $ — $ 15 $ 7 $ 148 $ 170 2015 $ — $ — $ 10 $ 29 $ 39 Equity earnings (loss) from joint ventures 2017 $ — $ 1 $ — $ — $ 1 2016 $ — $ 2 $ — $ 20 $ 22 2015 $ — $ — $ — $ — $ — Capital expenditures 2017 $ 115 $ 2 $ 299 $ 3 $ 419 2016 $ 116 $ 1 $ 297 $ 11 $ 425 2015 $ 75 $ — $ 287 $ 3 $ 365 Investments in and advances to joint ventures 2017 $ — $ 31 $ — $ — $ 31 2016 $ — $ 56 $ — $ — $ 56 2015 $ — $ — $ — $ — $ — (1) Net pension and postretirement cost (credit) excludes special items, as well as the recognition of curtailments, settlements and special termination benefits due to closures, restructuring or divestitures. See Note 9: Pension and Other Postretirement Benefit Plans for more information. (2) See Note 17: Charges for Integration and Restructuring, Closures and Asset Impairments for more information. Total Assets DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS and REAL ESTATE & ENR WOOD PRODUCTS UNALLOCATED ITEMS CONSOLIDATED Total assets (1)(2) 2017 $ 14,122 $ 2,145 $ 1,792 $ 18,059 2016 $ 15,608 $ 1,910 $ 1,725 $ 19,243 2015 $ 7,260 $ 1,541 $ 3,919 $ 12,720 (1) Assets attributable to the Real Estate & ENR business segment are combined with total assets for the Timberlands segment because we do not produce separate balance sheets internally. (2) Unallocated Items total assets includes assets of discontinued operations. DISCONTINUED OPERATIONS During 2016, we disposed of our former Cellulose Fibers segment, which is excluded from the segment results above unless otherwise noted. See Note 3: Discontinued Operations and Other Divestitures for information regarding our discontinued operations and the segments affected. |
DISCONTINUED OPERATIONS AND OTH
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES | 12 Months Ended |
Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES | DISCONTINUED OPERATIONS AND OTHER DIVESTITURES OPERATIONS DIVESTED On October 12, 2016, we announced the exploration of strategic alternatives for our Uruguay timberlands and manufacturing operations, which was part of our Timberlands business segment. On June 2, 2017, the Weyerhaeuser Board of Directors approved an equity purchase agreement with a consortium led by BTG Pactual's Timberland Investment Group (TIG), including other long-term investors, pursuant to which the Company agreed to sell, in exchange for $403 million in cash, all of its equity interest in the subsidiaries that collectively owned and operated its Uruguayan timberlands and manufacturing operations. On September 1, 2017, we completed the sale of our Uruguay timberlands and manufacturing operations for $403 million of cash proceeds. Due to the impairment of our Uruguayan operations recorded during second quarter 2017 (refer to Note 17: Charges for Integration and Restructuring, Closures and Asset Impairments ), no material gain or loss was recorded as a result of this sale. As of December 31, 2017 , no assets or liabilities related to Uruguayan operations remain on the Consolidated Balance Sheet . The sale of our Uruguayan operations was not considered a strategic shift that had or will have a major effect on our operations or financial results and therefore did not meet the requirements for presentation as discontinued operations. DISCONTINUED OPERATIONS During 2016, we entered into three separate transactions to sell our Cellulose Fibers business. As a result of these transactions, the company recognized a pretax gain on disposition of $789 million and total cash proceeds of $2.5 billion in the second half of 2016. These transactions consisted of: • sale of our Cellulose Fibers liquid packaging board business to Nippon Paper Industries Co., Ltd for $285 million in cash proceeds, which closed on August 31, 2016; • sale of our Cellulose Fibers printing papers joint venture to One Rock Capital Partners, LLC for $42 million in cash proceeds, which closed on November 1, 2016; and • sale of our Cellulose Fibers pulp business to International Paper for $2.2 billion in cash proceeds, which closed on December 1, 2016. The results of operations for our pulp and liquid packaging board businesses, along with our interest in our printing papers joint venture, were reclassified to discontinued operations during our 2016 reporting year. These results have been summarized in "Earnings from discontinued operations, net of income taxes" on our Consolidated Statement of Operations for each period presented. We did not reclassify our Consolidated Statement of Cash Flows to reflect discontinued operations. Cellulose Fibers was previously disclosed as a separate reportable business segment. Retained indirect corporate overhead costs previously allocated to Cellulose Fibers are now reported as part of Unallocated Items. We used $1.7 billion of the after-tax proceeds from the sale of our Cellulose Fibers business segment for repayment of debt during 2016. The following table presents the components of the net gain on the divestiture of Cellulose Fibers: DOLLAR AMOUNTS IN MILLIONS 2016 Proceeds, net of cash and cash equivalents disposed of $ 2,486 Less: Net book value of assets and liabilities disposed of (1,678 ) Transaction costs, net of reimbursement (19 ) (1,697 ) Pretax gain on Cellulose Fibers divestitures 789 Income taxes (243 ) Net gain on Cellulose Fibers divestitures $ 546 NET EARNINGS FROM DISCONTINUED OPERATIONS Sales and Net Earnings from Discontinued Operations DOLLAR AMOUNTS IN MILLIONS 2016 (1) 2015 (2) Total net sales $ 1,537 $ 1,860 Costs of products sold 1,283 1,573 Gross margin 254 287 Selling expenses 12 14 General and administrative expenses 29 30 Research and development expenses 5 6 Charges for integration and restructuring, closures and asset impairments (3) 63 2 Other operating income, net (27 ) (26 ) Operating income 172 261 Equity loss from joint venture (4 ) (105 ) Interest expense, net of capitalized interest (5 ) (6 ) Earnings from discontinued operations before income taxes 163 150 Income taxes (97 ) (55 ) Net earnings from operations 66 95 Net gain on divestiture of Cellulose Fibers 546 — Net earnings from discontinued operations $ 612 $ 95 (1) Discontinued operations in 2016 includes 335 days of the pulp business, 305 days of our printing papers joint venture operations, and 244 days of the liquid packaging board business. (2) Discontinued operations in 2015 includes a full year of the Cellulose Fibers business segment operations. (3) Charges for integration and restructuring, closures and asset impairments consist of costs related to our strategic evaluation of the Cellulose Fibers businesses and transaction-related costs. Results of discontinued operations exclude certain general corporate overhead costs that have been allocated to and are included in contribution to earnings for the operating segments. CARRYING VALUE OF ASSETS AND LIABILITIES OF DISCONTINUED OPERATIONS As all discontinued operations were sold during 2016, no assets or liabilities remain as of December 31, 2017 , or December 31, 2016 . CASH FLOWS FROM DISCONTINUED OPERATIONS Cash Flows from Discontinued Operations DOLLAR AMOUNTS IN MILLIONS 2016 (1) 2015 (2) Net cash provided by (used in) operating activities $ 196 $ 429 Net cash provided by (used in) investing activities $ 2,356 $ (118 ) (1) Discontinued operations in 2016 includes 335 days of the pulp business, 305 days of our printing papers joint venture operations, and 244 days of the liquid packaging board business, and the cash flows associated with the CF divestitures. (2) Discontinued operations in 2015 includes a full year of the Cellulose Fibers business segment operations. RELATED PARTY TRANSACTIONS WITH PRINTING PAPERS JOINT VENTURE Prior to November 1, 2016, we held a 50 percent ownership interest in North Pacific Paper Corporation (NORPAC), our printing papers joint venture, which we considered a related party. We provided goods and services to NORPAC, including raw materials and support services. The amount paid to Weyerhaeuser by this joint venture for goods and services were: • $126 million in 2016 and • $197 million in 2015 . |
MERGER WITH PLUM CREEK (Notes)
MERGER WITH PLUM CREEK (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
MERGER WITH PLUM CREEK | MERGER WITH PLUM CREEK On February 19, 2016, we merged with Plum Creek Timber Company, Inc. (Plum Creek). Plum Creek was a REIT that primarily owned and managed timberlands in the United States. Plum Creek also produced wood products, developed opportunities for mineral and other natural resource extraction, and sold real estate properties. The acquisition of total assets of $10.0 billion was a noncash investing and financing activity comprised of $6.4 billion in equity consideration transferred and $3.6 billion of liabilities assumed. Summarized Unaudited Pro Forma Information that Presents Combined Amounts as if this Merger Occurred at the Beginning of 2015 DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES 2016 2015 Net sales $ 6,525 $ 6,664 Net earnings from continuing operations attributable to Weyerhaeuser common shareholders $ 519 $ 487 Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, basic $ 0.69 $ 0.61 Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, diluted $ 0.68 $ 0.61 Pro forma net earnings attributable to Weyerhaeuser common shareholders exclude $155 million and $22 million of non-recurring merger-related costs (net of tax) incurred in the years ended December 31, 2016 and December 31, 2015, respectively. Pro forma data may not be indicative of the results that would have been obtained had these events occurred at the beginning of the periods presented, nor is it intended to be a projection of future results. Initial and Final Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed as of the Merger Date DOLLAR AMOUNTS IN MILLIONS PRELIMINARY ALLOCATION MEASUREMENT PERIOD ADJUSTMENTS FINAL ALLOCATION Current assets $ 128 $ 10 $ 138 Timber and timberlands 8,124 2 8,126 Minerals and mineral rights 312 6 318 Property and equipment 272 5 277 Equity investment in Timberland Venture 876 (29 ) 847 Equity investment in Real Estate Development Ventures 88 (3 ) 85 Other assets 163 4 167 Total assets acquired 9,963 (5 ) 9,958 Current liabilities 610 — 610 Long-term debt 2,056 — 2,056 Note payable to Timberland Venture 837 1 838 Other liabilities 77 (6 ) 71 Total liabilities assumed 3,580 (5 ) 3,575 Net assets acquired $ 6,383 $ — $ 6,383 The initial allocation of purchase price was recorded using preliminary estimated fair value of assets acquired and liabilities assumed based upon the best information available to management at the time. The purchase price allocation was finalized as of December 31, 2016. The measurement period adjustments reflect additional information obtained to record the fair value of certain assets acquired and liabilities assumed based on facts and circumstances existing as of the acquisition date. Measurement period adjustments reflected above did not have a material impact to earnings or cash flows for the year ended December 31, 2016. |
NET EARNINGS PER SHARE
NET EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
NET EARNINGS PER SHARE | NET EARNINGS PER SHARE Our basic earnings per share attributable to Weyerhaeuser common shareholders for the last three years were: • $0.77 in 2017 , • $1.40 in 2016 and • $0.89 in 2015 . Our diluted earnings per share attributable to Weyerhaeuser common shareholders for the last three years were: • $0.77 in 2017 , • $1.39 in 2016 and • $0.89 in 2015 . HOW WE CALCULATE BASIC AND DILUTED NET EARNINGS PER SHARE "Basic earnings" per share is net earnings available to common shareholders divided by the weighted average number of our outstanding common shares, including stock equivalent units where there is no circumstance under which those shares would not be issued. "Diluted earnings" per share is net earnings available to common shareholders divided by the sum of the: • weighted average number of our outstanding common shares and • the effect of our outstanding dilutive potential common shares. Dilutive potential common shares may include: • outstanding stock options, • restricted stock units, • performance share units and • preference shares. Calculation of Weighted Average Number of Outstanding Common Shares - Dilutive SHARES IN THOUSANDS 2017 2016 2015 Weighted average number of outstanding shares - basic 753,085 718,560 516,371 Dilutive potential common shares: Stock options 2,571 2,672 2,342 Restricted stock units 582 756 381 Performance share units 428 413 524 Total effect of outstanding dilutive potential common shares 3,581 3,841 3,247 Weighted average number of outstanding common shares - dilutive 756,666 722,401 519,618 We use the treasury stock method to calculate the dilutive effect of our outstanding stock options, restricted stock units and performance share units. Share-based payment awards that are contingently issuable upon the achievement of specified performance or market conditions are included in our diluted earnings per share calculation in the period in which the conditions are satisfied. SHARES EXCLUDED FROM DILUTIVE EFFECT The following shares were not included in the computation of diluted earnings per share because they were either antidilutive or the required performance or market conditions were not met. Some or all of these shares may be dilutive potential common shares in future periods. Potential Shares Not Included in the Computation of Diluted Earnings per Share SHARES IN THOUSANDS 2017 2016 2015 Stock options 1,351 1,462 5,016 Performance share units 799 384 155 Preference shares (1) — — 25,307 (1) See Note 15: Shareholders' Interest for more information. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2017 | |
INVENTORIES | INVENTORIES Inventories include raw materials, work-in-process, finished goods as well as materials and supplies. Inventories as of the End of Our Last Two Years DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, LIFO inventories: Logs $ 17 $ 18 Lumber, plywood, panels, and fiberboard 66 61 Other products 10 10 FIFO or moving average cost inventories: Logs 38 21 Lumber, plywood, panels, fiberboard and engineered wood products 91 73 Other products 77 90 Materials and supplies 84 85 Total $ 383 $ 358 LIFO — the last-in, first-out method — applies to major inventory products held at our U.S. domestic locations. The FIFO — the first-in, first-out method — or moving average cost methods apply to the balance of our domestic raw material and product inventories as well as for all material and supply inventories and all foreign inventories. If we used FIFO for all LIFO inventories, our stated inventories would have been higher by $70 million as of December 31, 2017 , and $71 million as of December 31, 2016 , respectively. HOW WE ACCOUNT FOR OUR INVENTORIES The Inventories section of Note 1: Summary of Significant Accounting Policies provides details about how we account for our inventories. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment includes land, buildings and improvements, machinery and equipment, roads and other items. Carrying Value of Property and Equipment and Estimated Service Lives DOLLAR AMOUNTS IN MILLIONS RANGE OF LIVES DECEMBER 31, DECEMBER 31, Property and equipment, at cost: Land N/A $ 88 $ 90 Buildings and improvements 15-35 867 789 Machinery and equipment 5-25 3,037 3,022 Roads 10-35 782 773 Other 3-10 182 194 Total cost 4,956 4,868 Accumulated depreciation and amortization (3,338 ) (3,306 ) Property and equipment, net $ 1,618 $ 1,562 SERVICE LIVES AND DEPRECIATION In general, additions are classified into components, each with its own estimated useful life as determined at the time of purchase. Buildings and improvements for property and equipment have estimated lives that are generally at either the high end or low end of the range from 15 years to 35 years , depending on the type and performance of construction. Depreciation expense, excluding discontinued operations, was: • $206 million in 2017 , • $198 million in 2016 and • $160 million in 2015 . |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | RELATED PARTIES This note provides details about and our transactions with related parties. Our related parties consist of: • joint ventures accounted for using equity method; • our Twin Creeks Venture; and • special-purpose entities (SPEs). JOINT VENTURES ACCOUNTED FOR USING THE EQUITY METHOD We have investments in an unconsolidated joint venture over which we have significant influence that we account for using the equity method. We record our share of net earnings within "Equity Earnings from joint ventures" in our Consolidated Statement of Operations in the period in which earnings are recorded by the affiliates. Real Estate Development Ventures WestRock-Charleston Land Partners, LLC (WR-CLP) is a limited liability company which holds residential and commercial real estate development properties, currently under development (Class A Properties) and higher-value timber and development lands (Class B Properties) (referred to collectively as the Real Estate Development Ventures). We have a 3 percent interest in Class A Properties and a 50 percent interest in Class B Properties. WestRock Company is the other member of WR-CLP and owns 97 percent of the Class A Properties and 50 percent of the Class B Properties. The company uses the equity method for both its Class A and Class B interests. Our share of the equity earnings is included in the net contribution to earnings of our Real Estate & ENR segment. WR-CLP is a variable interest entity and is financed by regular capital calls from the manager of WR-CLP in proportion to a member’s ownership interest. If a member does not make a capital contribution, the member’s ownership interest is diluted. We are not committed to make any material capital contributions during the remaining term of the venture, which expires in 2020 . We do not intend to provide any additional sources of financing for WR-CLP. We are not the primary beneficiary of WR-CLP. We consider the activities that most significantly impact the economic performance of WR-CLP to be the day-to-day operating decisions along with the oversight responsibilities for the real estate development projects and properties. WestRock Company (the other equity member) has the power to direct the activities of WR-CLP that most significantly impact its economic performance through its ability to manage the day-to-day operations of WR-CLP. WestRock Company also has the ability to control all management decisions associated with all Class A and Class B Properties through its majority representation on the board of directors for the Class A Properties and due to its equal representation on the board of directors for the Class B Properties. The carrying amount of our investment in WR-CLP is $31 million and $56 million at December 31, 2017 , and December 31, 2016 , respectively. The change in our investment in WR-CLP during 2017 is due to a $25 million cash return of investment received during 2017. Additionally, we had $1 million of equity earnings from the joint ventures during 2017. We record our share of net earnings within "Equity earnings from joint ventures" in our Consolidated Statement of Operations in the period which earnings are recorded by the affiliates. Other Joint Ventures Timberland Venture Since August 31, 2016, we hold all of the equity interests in the Timberland Venture and consolidate it as a wholly-owned subsidiary and eliminated our equity method investment in the Timberland Venture. Beginning on the date of our merger with Plum Creek until August 31, 2016, we held preferred and common interests in Southern Diversified Timber, LLC, a timberland joint venture (Timberland Venture), which included 100 percent of the preferred interests and 9 percent of the common interests. The Timberland Venture’s other member, an affiliate of Campbell Global LLC (TCG Member), held 91 percent of the Timberland Venture’s common interests. Our investment in and share of the equity earnings of the Timberland Venture was not attributed to one of our business segments, and was reported in Unallocated Items. On August 31, 2016, the Timberland Venture redeemed TCG Member’s interest. In conjunction with the redemption of TCG Member, we remeasured our previously held equity interest to fair value at August 31, 2016, resulting in recognition of a gain of $6 million in "Interest income and other" on our Consolidated Statement of Operations during third quarter 2016. North Pacific Paper Company (NORPAC) During 2016, we sold our interest in North Pacific Paper Corporation (NORPAC). See Note 3: Discontinued Operations and other divestitures for additional information. TWIN CREEKS VENTURE Ownership Redemption, Agreement Termination and Sale Recognition During October 2017, we redeemed our 21 percent ownership interest in the Twin Creeks Venture for $108 million in cash. We did not recognize a material gain or loss on the redemption of our ownership interest. The cash received was classified as a cash flow from investing activities in our Consolidated Statement of Cash Flows . Effective December 31, 2017 , we terminated the agreements under which we had managed the Twin Creeks timberlands. Following termination of these agreements, Weyerhaeuser has no further responsibilities or obligations related to the Twin Creeks Venture and our continuing involvement in the contributed timberlands ceased. Due to the events during the quarter, we have recognized the sale of the original contribution of timberlands that occurred April 2016. Changes in our deposit from contribution of timberlands to related party balance during 2016 and 2017 were as follows: DOLLAR AMOUNTS IN MILLIONS Balance at December 31, 2015 $ — Initial cash receipt upon contribution of timberlands to Twin Creeks Venture 440 Lease payments to Twin Creeks Venture (17 ) Distributions from Twin Creeks Venture 3 Balance at December 31, 2016 $ 426 Lease payments to Twin Creeks Venture (8 ) Distributions from Twin Creeks Venture 2 Recognition of contributed timberlands (420 ) Balance at December 31, 2017 $ — Formation and Operations On April 1, 2016, we contributed approximately 260,000 acres of our southern timberlands with an agreed-upon value of approximately $560 million to Twin Creeks Timber, LLC (Twin Creeks Venture), in exchange for cash of approximately $440 million and a 21 percent ownership interest. The other members contributed cash of approximately $440 million for a combined 79 percent ownership interest. In conjunction with contributing to the venture, we entered into a separate agreement to manage the timberlands owned by the Twin Creeks Venture, including harvesting activities, marketing and log sales activities, and replanting and silviculture activities. This management agreement guaranteed the Twin Creeks Venture an annual return equal to 3 percent of the contributed value of the managed timberlands in the form of minimum quarterly payments from Weyerhaeuser. This agreement also required us to annually distribute 75 percent of any profits earned by us in excess of the minimum quarterly payments. The management agreement was cancellable at any time by Twin Creeks Timber, LLC, and otherwise would expire on April 1, 2019. The guaranteed return that the management agreement required Weyerhaeuser to provide to the Twin Creeks Venture constituted continuing involvement in the timberlands that we contributed to the venture. This continuing involvement prohibited the recognition of the contribution as a sale and required application of the deposit method to account for the cash payment received. By applying the deposit method to the contribution of timberlands to the venture: • Our receipt of $440 million proceeds from the contribution of timberlands to the venture was recorded as a noncurrent liability - "Deposit from contribution of timberlands to related party" - on our Consolidated Balance Sheet . • The contributed timberlands continued to be reported within the "Timber and timberlands at cost, less depletion charged to disposals" on our Consolidated Balance Sheet . • No gain or loss was recognized in our Consolidated Statement of Operations . • Our balance sheet did not reflect our 21 percent ownership interest in the Twin Creeks Venture. The receipt of $440 million was classified as a cash flow from investing activities in our Consolidated Statement of Cash Flows . The cash proceeds from our contribution of timberlands were used for share repurchases. Sale of Additional Timberlands to Twin Creeks In conjunction with the redemption and termination discussed above, we also entered an agreement to sell 100,000 acres of Southern Timberlands to Twin Creeks for $203 million . The sale, which included 80,000 acres of timberlands in Mississippi and 20,000 acres in Georgia, closed December 29, 2017. The sale resulted in a $99 million gain recognized during fourth quarter 2017. SPECIAL-PURPOSE ENTITIES From 2002 through 2004, we sold certain nonstrategic timberlands in five separate transactions. We are the primary beneficiary and consolidate the assets and liabilities of certain monetization and buyer-sponsored SPEs involved in these transactions. We have an equity interest in the monetization SPEs, but no ownership interest in the buyer-sponsored SPEs. The following disclosures refer to assets of buyer-sponsored SPEs and liabilities of monetization SPEs. However, because these SPEs are distinct legal entities: • Assets of the SPEs are not available to satisfy our liabilities or obligations. • Liabilities of the SPEs are not our liabilities or obligations. Our Consolidated Statement of Operations includes: • Interest expense on SPE notes of: – $29 million in 2017 , – $29 million in 2016 and – $29 million in 2015 . • Interest income on SPE investments of: – $34 million in 2017 , – $34 million in 2016 and – $34 million in 2015 . Sales proceeds paid to buyer-sponsored SPEs were invested in restricted financial investments with a balance of $615 million as of both December 31, 2017 , and December 31, 2016 . The weighted average interest rate was 5.5 percent during 2017 and 2016 . Maturities of the financial investments at the end of 2017 were: • $253 million in 2019 and • $362 million in 2020 . The long-term notes of our monetization SPEs were $511 million as of both December 31, 2017 , and December 31, 2016 . The weighted average interest rate was 5.6 percent during 2017 and 2016 . Maturities of the notes at the end of 2017 were: • $209 million in 2018 and • $302 million in 2019 . Financial investments consist of bank guarantees backed by bank notes for three of the SPE transactions. Interest earned from each financial investment is used to pay interest accrued on the corresponding SPE’s note. Any shortfall between interest earned and interest accrued reduces our equity in the monetization SPEs. Upon dissolution of the SPEs and payment of all obligations of the entities, we would receive any net equity remaining in the monetization SPEs and would be required to report taxable gains on our income tax return. In the event that proceeds from the financial investments are insufficient to settle all of the liabilities of the SPEs, we are not obligated to contribute any funds to any of the SPEs. As of December 31, 2017 , our net equity in the three SPEs was approximately $105 million and the deferred tax liability was estimated to be approximately $116 million . |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS This note provides details about defined benefit and defined contribution plans we sponsor for our employees. The Pension and Other Postretirement Benefit Plans section of Note 1: Summary of Significant Accounting Policies provides information about employee eligibility for pension plans and postretirement health care and life insurance benefits, as well as how we account for the plans and benefits. DEFINED BENEFIT PLANS WE SPONSOR OVERVIEW OF PLANS The defined benefit pension plans we sponsor in the U.S. and Canada differ according to each country’s requirements. In the U.S., we have qualified plans that qualify under the Internal Revenue Code and nonqualified plans for select employees that provide additional benefits not qualified under the Internal Revenue Code. In Canada, we have registered plans that are registered under the Income Tax Act and applicable provincial pension acts and nonregistered plans for select employees that provide additional benefits that may not be registered under the Income Tax Act or provincial pension acts. We also offer other postretirement benefit plans in the U.S. and Canada , including retiree medical and life insurance plans. Assumed Plans from Merger with Plum Creek Upon our merger with Plum Creek, we assumed one qualified pension plan and two nonqualified pension plans. These plans were frozen as of February 19, 2016, and all plans were merged into existing Weyerhaeuser plans effective December 31, 2016 . The fair values of items assumed are included as plan acquisitions in the following tables. We also assumed assets of $47 million related to the nonqualified plans held in a grantor trust. These assets are subject to the claims of creditors in the event of bankruptcy. As a result, these are not considered plan assets and are not netted against the nonqualified pension liability. These assets are included in "Other assets" in our Consolidated Balance Sheet . During 2016 and 2017, we redeemed $42 million o f these assets to make nonqualified pension benefit payments. During first quarter 2016, we recognized $5 million of pension benefit costs from change in control provisions for certain Plum Creek executives. These enhanced pension benefits were triggered by changes in control and retention decisions made after the completion of the merger (see Note 17: Charges for Integration and Restructuring, Closures and Asset Impairments ). Amendments of Pension and Other Postretirement Benefit Plans for Salaried Employees There were no material pension plan, postretirement medical or life insurance plan amendments in 2017. Aside from the December 31, 2016, amendments to merge the Plum Creek plans into the Weyerhaeuser plans as described above, there were no material plan amendments in 2016. There were also no material plan amendments in 2015. FUNDED STATUS OF PLANS The funded status of the plans we sponsor is determined by comparing the projected benefit obligation with the fair value of plan assets at the end of the year. The following table demonstrates how our plans' funded status is reflected on the Consolidated Balance Sheet . DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2017 2016 2017 2016 Funded status: Fair value of plan assets $ 5,514 $ 5,351 $ — $ — Projected benefit obligations (6,795 ) (6,469 ) (200 ) (225 ) Funded status $ (1,281 ) $ (1,118 ) $ (200 ) $ (225 ) Presentation on our Consolidated Balance Sheet: Noncurrent assets $ 45 $ 27 $ — $ — Current liabilities (21 ) (28 ) (19 ) (21 ) Noncurrent liabilities (1,305 ) (1,117 ) (181 ) (204 ) Funded status $ (1,281 ) $ (1,118 ) $ (200 ) $ (225 ) Assets and liabilities on the Consolidated Balance Sheet are different from the cumulative income or expense that we have recorded associated with the plans. The differences are actuarial gains and losses and prior service costs and credits that are deferred and amortized into periodic benefit costs in future periods. Unamortized amounts are recorded in "Cumulative Other Comprehensive Loss", which is a component of total equity on our Consolidated Balance Sheet . The "Cumulative Other Comprehensive Income (Loss)" section of Note 15: Shareholder's Interest details changes in these amounts by component. Changes in Fair Value of Plan Assets DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2017 2016 2017 2016 Fair value of plan assets at beginning of year (estimated) $ 5,351 $ 5,491 $ — $ — Adjustment for final fair value of plan assets 18 7 — — Actual return on plan assets 553 27 — — Foreign currency translation 59 29 — — Employer contributions and benefit payments 57 78 20 21 Plan participants’ contributions — — 6 7 Plan transfers 3 1 — — Plan acquisitions — 137 — — Benefits paid (includes lump sum settlements) (527 ) (419 ) (26 ) (28 ) Fair value of plan assets at end of year (estimated) $ 5,514 $ 5,351 $ — $ — We estimate the fair value of pension plan assets based upon the information available during the year-end reporting process. In some cases, primarily private equity funds, the available information consists of net asset values as of an interim date, plus cash flows and market events between the interim date and the end of the year. We update the year-end estimated fair value of pension plan assets during the first half of the next year to incorporate year-end net asset values received after we have filed our Annual Report on Form 10-K. See additional details about the changes in the fair value of plan assets in the "Pension Assets" section below. Changes in Projected Benefit Obligations of Our Pension and Other Postretirement Benefit Plans DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2017 2016 2017 2016 Reconciliation of projected benefit obligation: Projected benefit obligation beginning of year $ 6,469 $ 6,211 $ 225 $ 240 Service cost 35 48 — — Interest cost 264 277 8 8 Plan participants’ contributions — — 6 7 Actuarial (gains) losses 489 120 (18 ) (5 ) Foreign currency translation 59 27 5 3 Benefits paid (includes lump sum settlements) (527 ) (419 ) (26 ) (28 ) Plan amendments and other 3 — — — Plan transfers 3 1 — — Plan acquisitions — 199 — — Change in control enhanced benefits — 5 — — Projected benefit obligation at end of year $ 6,795 $ 6,469 $ 200 $ 225 See additional details about the actuarial assumptions and changes in the projected benefit obligation in the "Actuarial Assumptions" section below. Accumulated Benefit Obligations Greater Than Plan Assets As of December 31, 2017 , pension plans with accumulated benefit obligations greater than plan assets had: • $5.9 billion in projected benefit obligations, • $5.9 billion in accumulated benefit obligations and • assets with a fair value of $4.6 billion . As of December 31, 2016 , pension plans with accumulated benefit obligations greater than plan assets had: • $5.7 billion in projected benefit obligations, • $5.6 billion in accumulated benefit obligations and • assets with a fair value of $4.5 billion . The accumulated benefit obligation for all of our defined benefit pension plans was: • $6.7 billion at December 31, 2017 , and • $6.4 billion at December 31, 2016 . PENSION ASSETS Our Investment Policies and Strategies Our investment policies and strategies guide and direct how the funds are managed for the benefit plans we sponsor. These funds include our: • U.S. Pension Trust — funds our U.S. qualified pension plans; • Canadian Pension Trust — funds our Canadian registered pension plans; and • Retirement Compensation Arrangements — fund a portion of our Canadian nonregistered pension plans. U.S. and Canadian Pension Trusts Investment managers of our pension plan asset portfolios use a diversified set of investment strategies. Our trusts invest both directly in a diversified mix of nontraditional investments, and indirectly through derivatives to promote effective use of capital, increase returns and manage associated risk. Our direct investments include cash and short-term investments, common and preferred stocks, hedge funds and related investments and private equity and related investments. Our indirect investments include equity and fixed income index derivatives, foreign currency derivatives and total return swaps. Cash and short-term investments include highly liquid money market and government securities and are primarily held to fund benefit payments, capital calls, margin requirements or to meet regulatory requirements. Common and preferred stocks are equity instruments that have been purchased directly or resulted from transactions related to private equity investment holdings. Hedge fund and related investments are privately-offered managed pools primarily structured as limited liability entities. General members or partners of these limited liability entities serve as portfolio managers and are thus responsible for the fund’s underlying investment decisions. Underlying investments within these funds may include long and short public and private equities, corporate, mortgage and sovereign debt, options, swaps, forwards and other derivative positions. These funds have varying degrees of leverage, liquidity, and redemption provisions. Private equity and related investments are investments in private equity, mezzanine, distressed, co-investments and other structures. Private equity funds generally participate in buyouts and venture capital of limited liability entities through unlisted equity and debt instruments. These funds may also borrow at the underlying entity level. Mezzanine and distressed funds generally invest in the debt of public or private companies with additional participation through warrants or other equity options. Derivative instruments are comprised of swaps, futures, forwards or options. Equity and fixed income index derivatives are used to achieve target equity and bond exposure or to reduce exposure to certain market risks. Foreign currency derivatives reduce exposure to certain currency risks. Total return swaps enable exposure to return characteristics of specific financial strategies with limited exchange of principal. While we do not target specific direct investment or derivative allocations, we have established guidelines on the percentage of pension trust assets that can be invested in certain categories to provide diversification by investment type fund and investment managers, as well as to manage overall liquidity. Allocation of trust assets at the end of the last two years is presented below. Assets within our qualified and registered pension plans in our U.S. and Canadian pension trusts were invested as follows: DECEMBER 31, 2017 DECEMBER 31, 2016 Cash and short-term investments 10.6 % 13.7 % Common and preferred stock — 0.1 Hedge funds and related investments 58.8 56.6 Private equity and related investments 22.2 22.7 Derivative instruments, net 8.7 7.1 Accrued liabilities (0.3 ) (0.2 ) Total 100.0 % 100.0 % Retirement Compensation Arrangements Retirement compensation arrangements fund a portion of our Canadian nonregistered pension plans. As required by Canadian tax rules, approximately 50 percent of these assets are invested into a noninterest-bearing refundable tax account held by the Canada Revenue Agency. This portion of the portfolio does not earn returns. The remaining portion is invested in a portfolio of equities. Managing Risk Investments and contracts are subject to risks including market price, liquidity, currency, interest rate and credit risks. The following provides an overview of these risks and describes governance processes and actions we take to mitigate these risks on our pension plan asset portfolios. Market price risk is the risk that market fluctuations will adversely affect the value of plan assets. The trusts mitigate market price risk by investing in a diversified portfolio whose returns exhibit low correlation to traditional asset classes and to each other. In addition, we and our investment advisers perform regular monitoring with ongoing qualitative assessments, quantitative assessments, and comprehensive investment and operational due diligence. Liquidity risk is the risk that the trust will not be able to settle liabilities such as payments to participants, counterparties, and service providers. Plan investments in limited liability pools with no active secondary market may be illiquid. Private equity funds are subject to distribution and funding schedules set by fund managers and market activity. Hedge funds may also be subject to restrictions that delay redemptions. To mitigate liquidity risk, private equity portfolios have been diversified across different vintage years and strategies, and hedge fund portfolios have been diversified across investment fund managers, strategies and liquidity provisions. In addition, the investment committee regularly reviews cash flows of the pension trusts and sets appropriate guidelines to address liquidity needs. Currency risk arises from holding plan assets denominated in a currency other than the currency in which its liabilities are settled. Currency risk is generally managed through notional contracts designed to hedge net exposure to non-functional currencies. Interest rate risk is the risk that a change in interest rates will adversely affect the fair value of fixed income securities. Interest rate risk exposure is primarily indirect through investment in limited liability pools. Fund managers mitigate this risk with predefined investment mandates and investment decisions. Credit risk is the risk that counterparties’ failure to discharge their obligations could impact cash flows. The trusts’ primary exposure is through settlement receivables from derivative contracts. Only the amount of unsettled net receivables is at risk for these types of investments, and no principal is at risk. We decrease credit risk exposure by only dealing with highly-rated financial counterparties; as of year-end, our counterparties each had a credit rating of at least A from S&P. We further manage this risk through diversification of counterparties, predefined settlement and margining provisions and documented agreements. We are also exposed to credit risk indirectly through counterparty relationships initiated by underlying managers of investments in limited liability pools. This risk is mitigated through initial due diligence and ongoing monitoring processes. Valuation of Our Plan Assets Pension assets are stated at fair value as of the reporting date. Fair value is based on the amount that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the reporting date. We do not consider forced or distressed sale scenarios. Instead, we consider both observable and unobservable inputs that reflect assumptions applied by market participants when setting the exit price of an asset or liability in an orderly transaction within the principal market for that asset or liability. We value the pension plan assets based upon the observability of exit pricing inputs and classify pension plan assets based upon the lowest level input that is significant to the fair value measurement of the pension plan assets in their entirety. The fair value hierarchy is: • Level 1: Inputs are unadjusted quoted prices for identical assets and liabilities traded in an active market. • Level 2: Inputs are quoted prices in non-active markets for which pricing inputs are observable either directly or indirectly at the reporting date. • Level 3: Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. Investments for which fair value is measured using the net asset value per share as a practical expedient are not categorized within the fair value hierarchy. Cash and short-term investments are valued at cost, which approximates market. Common and preferred stocks are valued at exit prices quoted in public markets. Hedge funds, private equities, and related fund units are valued based on the net asset values of the funds. These values represent the per-unit price at which new investors are permitted to invest and existing investors are permitted to exit. When net asset values as of the end of the year have not been received, we estimate fair value by adjusting the most recently reported net asset values for market events and cash flows between the interim date and the end of the year. Derivative instruments are valued based upon valuation statements received from each derivative’s counterparty. These contracts are not publicly traded. The net pension plan assets, when categorized in accordance with this fair value hierarchy, are as follows. Investments valued using net asset value (NAV) as a practical expedient are presented to reconcile with total plan assets. DOLLAR AMOUNTS IN MILLIONS 2017 LEVEL 1 LEVEL 2 LEVEL 3 NAV TOTAL Pension trust investments: Cash and short-term investments $ 580 $ 2 $ — $ — $ 582 Common and preferred stock 1 — — — 1 Hedge fund and related investments 59 — 10 3,168 3,237 Private equity and related investments — — 102 1,120 1,222 Derivative instruments: Assets — 31 445 — 476 Liabilities — — — — — Total pension trust investments 640 33 557 4,288 5,518 Accrued liabilities, net (16 ) Pension trust net assets 5,502 Canadian nonregistered plan assets: Cash and short-term investments 6 — — — 6 Common and preferred stock 6 — — — 6 Total Canadian nonregistered plan assets 12 — — — 12 Total plan assets $ 5,514 DOLLAR AMOUNTS IN MILLIONS 2016 LEVEL 1 LEVEL 2 LEVEL 3 NAV TOTAL Pension trust investments: Cash and short-term investments $ 715 $ 16 $ — $ — $ 731 Common and preferred stock 7 — — — 7 Hedge fund and related investments 62 — 4 2,957 3,023 Private equity and related investments — — 75 1,138 1,213 Derivative instruments: Assets — 10 376 — 386 Liabilities — (8 ) — — (8 ) Total pension trust investments 784 18 455 4,095 5,352 Accrued liabilities, net (11 ) Pension trust net investments 5,341 Canadian nonregistered plan assets: Cash and short-term investments 5 — — — 5 Common and preferred stock 5 — — — 5 Total Canadian nonregistered plan assets 10 — — — 10 Total plan assets $ 5,351 Assets that do not have readily available quoted prices in an active market require more judgment to value and have increased risk. Approximately $557 million , or 10.1 percent , of our pension plan assets were classified as Level 3 assets as of December 31, 2017. A reconciliation of the beginning and ending balances of the pension plan assets measured at fair value using significant unobservable inputs (Level 3) is presented below: DOLLAR AMOUNTS IN MILLIONS INVESTMENTS Hedge funds and related investments Private equity and related investments Derivative instruments, net Total Balance as of December 31, 2015 $ 3 $ 52 $ 491 $ 546 Net realized gains (losses) (1 ) (2 ) 134 131 Net change in unrealized gains (losses) 2 (3 ) (121 ) (122 ) Purchases — 21 — 21 Sales — (18 ) — (18 ) Settlements — — (128 ) (128 ) Transfers into Level 3 — 25 — 25 Transfers out of Level 3 — — — — Balance as of December 31, 2016 4 75 376 455 Net realized gains (losses) (1 ) (30 ) 15 (16 ) Net change in unrealized gains (losses) 2 41 67 110 Purchases — 14 — 14 Sales (1 ) — — (1 ) Settlements — — (13 ) (13 ) Transfers into Level 3 6 19 — 25 Transfers out of Level 3 — (17 ) — (17 ) Balance as of December 31, 2017 $ 10 $ 102 $ 445 $ 557 The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. We evaluate the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total net assets available for benefits. The table below shows the fair value and aggregate notional amount of the derivative instruments held by our pension trusts at the end of the last two years. DOLLAR AMOUNTS IN MILLIONS FAIR VALUE NOTIONAL DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, Equity and fixed income index derivatives, net $ 19 $ 10 $ 501 $ 405 Foreign currency derivatives, net 12 (5 ) 1,413 2,811 Total return swaps, net 445 373 1,443 1,515 Total $ 476 $ 378 $ 3,357 $ 4,731 ACTUARIAL ASSUMPTIONS We use actuarial assumptions to estimate our benefit obligations and our net periodic benefit costs. The following tables show the rates used to estimate our benefit obligations and periodic net benefit costs. Rates We Use in Estimating Our Benefit Obligations PENSION DECEMBER 31, DECEMBER 31, Discount rates: United States 3.70 % 4.30 % Canada 3.50 % 3.70 % Lump sum distributions (1)(2) PPA Table PPA Table Rate of compensation increase: Salaried: United States 13.00% to 2.00% decreasing with participant age 13.00% to 2.00% decreasing with participant age Canada 3.25 % 3.50 % Hourly: United States 13.00% to 2.30% decreasing with participant age 13.00% to 2.30% decreasing with participant age Canada 3.00 % 3.25 % Lump sum or installment distributions election (2) 60.00 % 60.00 % (1) PPA Phased Table: Interest and mortality assumptions as mandated by Pension Protection Act of 2006 including the phase out of the prior interest rate basis in 2013. (2) U.S. qualified salaried and nonqualified plans only The discount rates used for our U.S. other postretirement benefit plans were 3.50 percent and 3.70 percent for the years ended December 31, 2017, and December 31, 2016, respectively. Additionally, the discount rates used for our Canadian other postretirement benefit plans were 3.40 percent and 3.60 percent for the years ended December 31, 2017, and December 31, 2016, respectively. Estimating Our Net Periodic Benefit Costs PENSION 2017 2016 2015 Discount rates: United States 4.30 % 4.50 % 4.10 % Canada 3.70 % 4.00 % 3.90 % Lump sum distributions (1)(2) PPA Table PPA Table PPA Table Expected return on plan assets: Qualified/registered plans (3) 8.00 % 9.00% for all plans except 7.00% for plans assumed from Plum Creek 9.00 % Nonregistered plans 3.50 % 3.50 % 3.50 % Rate of compensation increase: Salaried: United States 13.00% to 2.00% decreasing with participant age 13.00% to 2.00% decreasing with participant age 2.50% for 2015 Canada 3.50 % 3.50 % 2.50% for 2015 Hourly: United States 13.00% to 2.30% decreasing with participant age 13.00% to 2.30% decreasing with participant age 3.00 % Canada 3.25 % 3.25 % 3.25 % Lump sum distributions election (2) 60.00 % 60.00 % 60.00 % (1) PPA Phased Table: Interest and mortality assumptions as mandated by Pension Protection Act of 2006 including the phase out of the prior interest rate basis in 2013. (2) U.S. qualified salaried and nonqualified plans only (3) Beginning in 2017 and continuing in 2018 we will use an assumed expected return on plan assets of 8.00 percent for qualified and registered pension plans. The discount rates used for our U.S. other postretirement benefit plans were 3.70 percent , 4.00 percent and 3.60 percent for the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively. Additionally, the discount rates used for our Canadian other postretirement benefit plans were 3.60 percent , 3.90 percent and 3.80 percent for the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively. Expected Return on Plan Assets We estimate the expected long-term return on assets for our qualified, registered and nonregistered pension plans. Qualified and Registered Pension Plans We have assumed a long-term rate of return on plan assets of 8 percent for the year ended December 31, 2017 . As part of our 2016 annual evaluation of key assumptions, we reduced our assumption of long-term rate of return on plan assets to 8 percent for estimated 2017 net periodic benefit cost. Determining our expected return requires a high degree of judgment. We consider actual pension fund performance over multiple years, and current and expected valuation levels in the global equity and credit markets. Historical fund returns are used as a base, and we place added weight on more recent pension plan asset performance. Over the 33 years it has been in place, our U.S. pension trust investment strategy has achieved a 13.7 percent net compound annual return rate. The past 5 years, our net compounded annual return was over 8 percent . Nonregistered Plans Canadian tax rules require that 50 percent of the assets for nonregistered plans go to a noninterest-bearing refundable tax account. As a result, the return we earn investing the other 50 percent is spread over 100 percent of the assets. Our expected long-term annual rate of return on the portion we are allowed to manage is 7 percent . This assumption is based on historical experience and future return expectations. The expected overall annual return on assets that fund our nonregistered plans is 3.5 percent . Allocation of Actual Returns Between Assets Held by Our Pension Trusts The percentage of actual return on assets held by our pension trusts in 2017 based on valuations as of year-end is as follows: 2017 2016 2015 Direct investments 72 % 44 % 77 % Derivative instruments 28 % 56 % 23 % Total 100 % 100 % 100 % Health Care Costs Rising costs of health care affect the costs of our other postretirement plans. We use assumptions about health care cost trend rates to estimate the cost of benefits we provide. Our trend rate assumptions are based on historical market experience, current environment and future expectations. In 2017 , the assumed weighted health care cost trend rate was: • 8.9 percent for U.S. Pre-Medicare • 4.5 percent for U.S. Health Reimbursement Account (HRA) • 4.9 percent for Canada This table shows the assumptions we use in estimating the annual cost increase for health care benefits we provide. Assumptions We Use in Estimating Health Care Benefit Cost Trends 2017 2016 U.S. CANADA U.S. CANADA Weighted health care cost trend rate assumed for next year 8.40% for Pre-Medicare and 4.50% for HRA 5.10 % 8.90% for Pre-Medicare and 4.50% for HRA 4.90 % Rate that the cost trend rate gradually declines to 4.50 % 4.30 % 4.50 % 4.30 % Year the cost trend rate is reached 2037 2028 2037 2028 The assumed health care cost trend rate can significantly influence projected postretirement benefit plan payments. The following table demonstrates the effect a one percent change in assumed health care cost trend rates would have with all other assumptions remaining constant. Effect of a One Percent Change in Health Care Costs AS OF DECEMBER 31, 2017 (DOLLAR AMOUNTS IN MILLIONS) 1% INCREASE 1% DECREASE Effect on total service and interest cost components less than $1 less than $(1) Effect on accumulated postretirement benefit obligation $ 7 $ (7 ) ACTIVITY OF PLANS Net Periodic Benefit Cost (Credit) DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2017 2016 2015 2017 2016 2015 Net periodic benefit cost (credit): Service cost (1) $ 35 $ 48 $ 57 $ — $ — $ — Interest cost 264 277 265 8 8 9 Expected return on plan assets (409 ) (495 ) (476 ) — — — Amortization of actuarial loss 195 156 182 8 9 10 Amortization of prior service cost (credit) 4 4 4 (8 ) (7 ) (9 ) Accelerated pension costs for Plum Creek merger-related change-in-control provisions — 5 — — — — Net periodic benefit cost (credit) $ 89 $ (5 ) $ 32 $ 8 $ 10 $ 10 (1) Service cost includes $13 million in 2016 and $17 million in 2015 for employees that were part of our Cellulose Fibers divestitures. These charges are included in our results of discontinued operations. Curtailment and special termination benefits are related to involuntary terminations due to restructuring activities. Estimated Amortization from Cumulative Other Comprehensive Loss in 2018 DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS TOTAL Net actuarial loss $ 242 $ 8 $ 250 Prior service cost (credit) 3 (8 ) (5 ) Net effect cost $ 245 $ — $ 245 Expected Pension Plan and Benefit Funding Established funding standards govern the funding requirements for our qualified and registered pension plans. We fund the benefit payments of our nonqualified and nonregistered plans as benefit payments come due. There was no minimum required contribution for our U.S. qualified plan for 2017, nor were any contributions made to this plan in 2017. During 2017, we contributed $25 million for our Canadian registered plans, we made contributions and benefit payments of $2 million for our Canadian nonregistered pension plans and made benefit payments of $31 million for our nonqualified pension plans, including $1 million of enhanced pension benefit payments from change in control provisions. During 2018 , based on estimated year-end asset values and projections of plan liabilities, we expect to: • be required to contribute approximately $23 million for our Canadian registered plan; • be required to contribute or make benefit payments for our Canadian nonregistered plans of $4 million ; and • make benefit payments of approximately $19 million for our U.S. nonqualified pension plans. We do not anticipate a contribution being required for our U.S. qualified pension plan for 2018 . Expected Postretirement Benefit Funding Benefits for these plans are paid from our general assets as they come due. We expect to make benefit payments of $19 million for our U.S. and Canadian other postretirement benefit plans in 2018 , including $7 million expected to be required to cover benefit payments under collectively bargained contractual obligations. Estimated Projected Benefit Payments for the Next 10 Years DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2018 $ 369 $ 19 2019 371 18 2020 374 17 2021 374 16 2022 376 15 2023-2027 1,902 65 UNION-ADMINISTERED MULTIEMPLOYER BENEFIT PLANS We contribute to multiemployer defined benefit plans under the terms of collective-bargaining agreements. These plans cover a small number of our employees and on an annual basis our contributions are immaterial. These plans have different risks than single-employer plans. Our contributions may be used to fund benefits for employees of other participating employers. If we choose to stop participating, we may be required to pay a withdrawal liability based on the underfunded status of the plan . If another participating employer stops contributing to the plan, we may become responsible for remaining plan unfunded obligations. DEFINED CONTRIBUTION PLANS We sponsor various defined contribution plans for our U.S. and Canadian salaried and hourly employees. Our contributions to these plans were: • $21 million in 2017 , • $27 million in 2016 and • $21 million in 2015 . Upon our merger with Plum Creek, we assumed one defined contribution plan, the Plum Creek Thrift and Profit Sharing Plan. Effective July 15, 2016, the assets of this plan were merged into the Weyerhaeuser 401(k) Plan. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities were comprised of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Wages, salaries and severance pay $ 150 $ 178 Pension and other postretirement benefits 40 49 Vacation pay 33 33 Taxes – Social Security and real and personal property 24 20 Interest 111 120 Customer rebates and volume discounts 48 39 Deferred income 48 40 Accrued income taxes 19 139 Product remediation accrual (Note 18) 98 — Other 74 74 Total $ 645 $ 692 |
LINES OF CREDIT
LINES OF CREDIT | 12 Months Ended |
Dec. 31, 2017 | |
Line of Credit Facility [Line Items] | |
LINES OF CREDIT | LINES OF CREDIT OUR LINES OF CREDIT During March 2017 , we entered into a new $1.5 billion five-year senior unsecured revolving credit facility that expires in March 2022 . This replaced a $1 billion senior unsecured revolving credit facility that was originally set to expire September 2018 . The entire amount is available to Weyerhaeuser Company. Borrowings are at LIBOR plus a spread or at other interest rates mutually agreed upon between the borrower and the lending banks. As of December 31, 2017 , there were no borrowings outstanding under the facility and we were in compliance with the credit facility covenants. OTHER LETTERS OF CREDIT AND SURETY BONDS The amounts of other letters of credit and surety bonds we have entered into as of the end of our last two years are included in the following table: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Letters of credit $ 37 $ 38 Surety bonds $ 134 $ 125 Our compensating balance requirements for our letters of credit were $5 million as of December 31, 2017 . |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2017 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT This note provides details about: • term loans issued and extinguished, • long-term debt assumed in the Plum Creek merger, and • long-term debt and long-term debt maturities. Our long-term debt includes notes, debentures and other borrowings. TERM LOANS ISSUED AND EXTINGUISHED During July 2017 , we prepaid a $550 million variable-rate term loan originally set to mature in 2020 (2020 term loan). The 2020 term loan was prepaid using available cash of $325 million as well as borrowing proceeds from a new $225 million variable-rate term loan set to mature in 2026 (2026 term loan). The 2020 term loan was eligible to received patronage refunds while outstanding. Similarly, we receive patronage refunds on the 2026 term loans, which will continue while the loan remains outstanding. Refer to the "Installment Note" section below for further details regarding patronage refunds. During August 2017, we paid our $281 million 6.95 percent debenture due in 2017 . During February 2016 , and subsequent to completion of the Plum Creek merger, we entered into a $600 million 18-month senior unsecured term loan set to mature in August 2017 . The $600 million outstanding under this facility was repaid in full and terminated during fourth quarter 2016. During March 2016 , we entered into a $1.9 billion 18-month senior unsecured term loan set to mature in September 2017 . The $1.1 billion outstanding under this facility was repaid in full and terminated during fourth quarter 2016. LONG-TERM DEBT ASSUMED IN THE PLUM CREEK MERGER Through our merger with Plum Creek, we assumed long-term debt instruments consisting of: • two issuances of publicly traded Senior Notes, • an Installment Note (defined and described below) and • the Note Payable to Timberland Venture (defined and described below). Concurrent with the merger, we repaid in full the outstanding balances of Plum Creek's Revolving Line of Credit and Term Loan using $720 million of cash on hand. Senior Notes The assumed Senior Notes are publicly traded and were issued by Plum Creek Timberlands, L.P. (PC Timberlands) and were fully and unconditionally guaranteed by Weyerhaeuser Company as of the acquisition date. During third quarter 2016, PC Timberlands was merged into Weyerhaeuser Company and Weyerhaeuser Company assumed the obligations. There were two separate Senior Notes: $569 million (principal) of 4.70 percent notes which mature in 2021 and $325 million (principal) of 3.25 percent notes which mature in 2023 . The Senior Notes are redeemable prior to maturity; however, they are subject to a premium on redemption, which is based upon interest rates of U.S. Treasury securities having similar average maturities. Through acquisition accounting the Senior Notes were recognized at estimated fair values of $614 million for the 4.70 percent notes and $324 million for the 3.25 percent notes as of the acquisition date. The differences between cash interest payments and the amounts recorded as interest expense at the effective market rates will adjust the carrying values of the notes to the principal amounts at maturity. Installment Note We assumed an installment note (Installment Note) payable to WestRock Land and Development, LLC (WR LD) that was issued in connection with Plum Creek's acquisition of certain timberland assets. The principal balance of the Installment Note is $860 million . Following the issuance, WR LD pledged the installment note to certain banks. The annual interest rate on the Installment Note is fixed at 5.207 percent . Interest is paid semi-annually with the principal due upon maturity in December 2023 . The term may be extended at the request of the holder if the company at the time of the request intends to refinance all or a portion of the Installment Note for a term of five years or more. The Installment Note is generally not redeemable prior to maturity except in certain limited circumstances and could be subject to a premium on redemption. We receive patronage refunds under the Installment Note. Patronage refunds are distributions of profits from banks in the farm credit system, which are cooperatives that are required to distribute profits to their members. Patronage distributions, which are made in either cash or stock, are received in the year after they were earned and are recorded as offsets to interest expense. Through acquisition accounting, the Installment Note was recognized at an estimated fair value of $893 million as of the acquisition date. The difference between the cash interest payments and the amount being recorded as interest expense at the effective market rate will reduce the carrying value of the Installment Note to the principal amount at the maturity date. Note Payable to Timberland Venture We assumed the Note Payable to Timberland Venture, which had a principal balance of $783 million . The annual interest rate on the Note Payable to Timberland Venture is fixed at 7.375 percent . Interest is paid quarterly with the principal due upon maturity. The note matures on October 1, 2018 , but may be extended until October 1, 2020 , at our election. The note is not redeemable prior to maturity. Through acquisition accounting, the Note Payable to Timberland Venture was recognized at an estimated fair value of $838 million as of the acquisition date. The difference between the cash interest payments and the amount being recorded as interest expense at the effective market rate will reduce the carrying value of the note to the principal amount at the maturity date. On August 31, 2016, the Timberland Venture redeemed TCG Member's interest and Weyerhaeuser obtained full ownership of the Timberland Venture's equity. As a result, we consolidated the Timberland Venture as a wholly-owned subsidiary and the Note Payable to Timberland Venture is therefore eliminated for financial reporting purposes upon consolidation as it is now intercompany indebtedness. The redemption transaction and consolidation are described in Note 8: Related Parties . LONG-TERM DEBT AND LONG-TERM DEBT MATURITIES The following table lists our long-term debt by types and interest rates at the end of our last two years and includes the current portion. Long-Term Debt by Types and Interest Rates (Includes Current Portion) DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, 6.95% debentures due 2017 $ — $ 281 7.00% debentures due 2018 62 62 7.375% notes due 2019 500 500 Variable rate term loan credit facility matures 2020 — 550 9.00% debentures due 2021 150 150 4.70% debentures due 2021 597 606 7.125% debentures due 2023 191 191 5.207% debentures due 2023 885 889 4.625% notes due 2023 500 500 3.25% debentures due 2023 324 324 8.50% debentures due 2025 300 300 7.95% debentures due 2025 136 136 7.70% debentures due 2026 150 150 7.35% debentures due 2026 62 62 7.85% debentures due 2026 100 100 Variable rate term loan credit facility matures 2026 225 — 6.95% debentures due 2027 300 300 7.375% debentures due 2032 1,250 1,250 6.875% debentures due 2033 275 275 Other 1 2 6,008 6,628 Less unamortized discounts (5 ) (5 ) Less unamortized debt expense (11 ) (13 ) Total $ 5,992 $ 6,610 Portion due within one year $ 62 $ 281 Amounts of Long-Term Debt Due Annually for the Next Five Years and the Total Amount Due After 2022 DOLLAR AMOUNTS IN MILLIONS (1) 2018 $ 62 2019 500 2020 — 2021 719 2022 — Thereafter 4,675 (1) Excludes $36 million of unamortized discounts, capitalized debt expense and fair value adjustments (related to Plum Creek merger). |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF DEBT The estimated fair values and carrying values of our long-term debt consisted of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2017 DECEMBER 31, 2016 CARRYING VALUE FAIR VALUE (LEVEL 2) CARRYING VALUE FAIR VALUE (LEVEL 2) Long-term debt (including current maturities): Fixed rate $ 5,768 $ 6,823 $ 6,061 $ 6,925 Variable rate 224 225 549 550 Total Debt $ 5,992 $ 7,048 $ 6,610 $ 7,475 To estimate the fair value of long-term debt, we used the following valuation approaches: • market approach — based on quoted market prices we received for the same types and issues of our debt; or • income approach — based on the discounted value of the future cash flows using market yields for the same type and comparable issues of debt. We believe that our variable rate long-term debt instruments have net carrying values that approximate their fair values with only insignificant differences. The inputs to these valuations are based on market data obtained from independent sources or information derived principally from observable market data. The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at the measurement date. FAIR VALUE OF OTHER FINANCIAL INSTRUMENTS We believe that our other financial instruments, including cash and cash equivalents, short-term investments, mutual fund investments held in grantor trusts, receivables, and payables, have net carrying values that approximate their fair values with only insignificant differences. This is primarily due to the short-term nature of these instruments and the allowance for doubtful accounts. |
LEGAL PROCEEDINGS, COMMITMENTS
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES | LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES This note provides details about our: • legal proceedings, • environmental matters and • commitments and other contingencies. LEGAL PROCEEDINGS We are party to various legal proceedings arising in the ordinary course of business. We are not currently a party to any legal proceeding that management believes could have a material adverse effect on our long-term consolidated financial position, results of operations or cash flows. See "Ongoing IRS Matter" in Note 20: Income Taxes for a discussion of a tax proceeding involving Plum Creek REIT's 2008 U.S. federal income tax return. ENVIRONMENTAL MATTERS Our environmental matters include: • site remediation and • asset retirement obligations. Site Remediation Under the Comprehensive Environmental Response, Compensation and Liability Act — commonly known as the Superfund — and similar state laws, we: • are a party to various proceedings related to the cleanup of hazardous waste sites and • have been notified that we may be a potentially responsible party related to the cleanup of other hazardous waste sites for which proceedings have not yet been initiated. We have received notification from the Environmental Protection Agency (the EPA) and have acknowledged that we are a potentially responsible party in a portion of the Kalamazoo River Superfund site in southwest Michigan. Our involvement in the remediation site is based on our former ownership of the Plainwell, Michigan mill located within the remediation site. Several other companies also operated upstream pulp mills within the remediation site. We are currently cooperating with the other parties to jointly implement an administrative order issued by the EPA on April 14, 2016, with respect to a portion of the site comprising a stretch of the river approximately 1.7 miles long referred to as the Otsego Township Dam Area. We do not expect to incur material losses related to the implementation of this administrative order; however, we may incur additional costs, as yet not specified, in connection with remediation tasks resulting from other areas of the site. The company, along with others, was named as a defendant by Georgia Pacific Consumer Products LP, Fort James Corporation and Georgia-Pacific LLC in an action seeking contribution under CERCLA for remediation costs relating to the site. The trial has been concluded but a decision on cost contribution and allocation has not yet been rendered by the Court. Our Established Reserves. We have established reserves for estimated remediation costs on the active Superfund sites and other sites for which we are a potentially responsible party. These reserves are recorded in "Accrued liabilities" and "Other liabilities" in our Consolidated Balance Sheet . Changes in the Reserve for Environmental Remediation DOLLAR AMOUNTS IN MILLIONS Reserve balance as of December 31, 2016 $ 34 Reserve charges and adjustments, net 29 Payments (15 ) Reserve balance as of December 31, 2017 $ 48 Total active sites as of December 31, 2017 37 We change our accrual to reflect: • new information on any site concerning implementation of remediation alternatives, • updates on prior cost estimates and new sites and • costs incurred to remediate sites. Estimates. We believe it is reasonably possible, based on currently available information and analysis, that remediation costs for all identified sites may exceed our existing reserves by up to $150 million . This estimate, in which those additional costs may be incurred over several years, is the upper end of the range of reasonably possible additional costs. The estimate: • is much less certain than the estimates on which our accruals currently are based and • uses assumptions that are less favorable to us among the range of reasonably possible outcomes. In estimating our current accruals and the possible range of additional future costs, we: • assumed we will not bear the entire cost of remediation of every site, • took into account the ability of other potentially responsible parties to participate and • considered each party ’ s financial condition and probable contribution on a per-site basis. We have not recorded any amounts for potential recoveries from insurance carriers. Asset Retirement Obligations We have obligations associated with the retirement of tangible long-lived assets consisting primarily of reforestation obligations related to forest management licenses in Canada and obligations to close and cap landfills. Some of our sites have asbestos containing materials. We have met our current legal obligation to identify and manage these materials. In situations where we cannot reasonably determine when asbestos containing materials might be removed from the sites, we have not recorded an accrual because the fair value of the obligation cannot be reasonably estimated. These obligations are recorded in "Accrued liabilities" and "Other liabilities" in our Consolidated Balance Sheet . Changes in the Reserve for Asset Retirement Obligations DOLLAR AMOUNTS IN MILLIONS Reserve balance as of December 31, 2016 (1) $ 29 Reserve charges and adjustments, net 12 Payments (11 ) Other adjustments (2) 2 Reserve balance as of December 31, 2017 $ 32 (1) Reserve balance for continuing operations (2) Primarily related to a foreign currency remeasurement gain for our Canadian reforestation obligation COMMITMENTS AND OTHER CONTINGENCIES Our commitments and contingencies include: • guarantees of debt and performance, • operating leases and • product remediation contingency. Guarantees We have guaranteed the performance of the buyer/lessee of a timberlands lease we sold in 2005. Future payments on the lease, which expires in 2023 , are $12 million . Operating Leases Our rent expense for continuing operations was: • $39 million in 2017 , • $37 million in 2016 and • $24 million in 2015 . We have operating leases for: • various equipment, including logging equipment, lift trucks, automobiles and office equipment; • timberland ground leases; and • office and wholesale space. Future Commitments on Operating Leases Our operating lease commitments as of December 31, 2017 were: DOLLAR AMOUNTS IN MILLIONS 2018 $ 40 2019 35 2020 32 2021 29 2022 27 Thereafter 161 Product Remediation Contingency In July 2017, the company announced it was implementing a solution to address concerns regarding our TJI® Joists with Flak Jacket® Protection product. The company has determined that an odor in certain newly constructed homes is related to a recent formula change to the Flak Jacket coating that included a formaldehyde-based resin. This issue is isolated to Flak Jacket product manufactured after December 1, 2016, and does not affect any of the company’s other products. We recorded a pretax charge of $290 million in the period ended December 31, 2017 , related to remediation costs. Refer to Note 18: Charges for Product Remediation for further information. |
SHAREHOLDERS' INTEREST
SHAREHOLDERS' INTEREST | 12 Months Ended |
Dec. 31, 2017 | |
SHAREHOLDERS' INTEREST | SHAREHOLDERS’ INTEREST This note provides details about: • preferred and preference shares, • common shares, • share-repurchase programs and • cumulative other comprehensive income (loss). PREFERRED AND PREFERENCE SHARES We had no preferred shares outstanding at the end of 2017 or 2016 . However, we have authorization to issue 7 million preferred shares with a par value of $1.00 per share. On June 24, 2013, we issued 13.8 million of our 6.375 percent Mandatory Convertible Preference Shares, Series A, par value $1.00 and liquidation preference of $50.00 per share, for net proceeds of $669 million , which remained outstanding at December 31, 2015 . Dividends were payable on a cumulative basis when, as and if declared by our board of directors, at an annual rate of 6.375 percent on the liquidation preference. We could pay declared dividends in cash or, subject to certain limitations, in common shares or by delivery of any combination of cash and common shares on January 1, April 1, July 1 and October 1 of each year, commencing on October 1, 2013, through and including, July 1, 2016. These shares automatically converted to common shares on July 1, 2016. At any time prior to that date, holders could elect to convert each share into common shares at the minimum conversion rate of 1.5283 common shares, subject to anti-dilution adjustments. On July 1, 2016, all outstanding 6.375 percent Mandatory Convertible Preference Shares, Series A (Preference Shares) converted into Weyerhaeuser common shares at a rate of 1.6929 Weyerhaeuser common shares per Preference Share. The company issued a total of 23.2 million Weyerhaeuser common shares in conjunction with the conversion, based on 13.7 million Preference Shares outstanding as of the conversion date. In accordance with the terms of the Preference Shares, the number of Weyerhaeuser common shares issuable on conversion was determined based on the average volume weighted average price of $29.54 for Weyerhaeuser common shares over the 20-trading-day period beginning June 1, 2016, and ending on June 28, 2016. We may issue preferred or preference shares at one time or through a series of offerings. The shares may have varying rights and preferences that can include: • dividend rights and amounts, • redemption rights, • conversion terms, • sinking-fund provisions, • values in liquidation and • voting rights. When issued, outstanding preferred and preference shares rank senior to outstanding common shares. That means preferred and preference shares would receive dividends and assets available on liquidation before any payments are made to common shares. COMMON SHARES The number of common shares we have outstanding changes when: • new shares are issued, • stock options are exercised, • restricted stock units or performance share units vest, • stock-equivalent units are paid out, • shares are tendered, • shares are repurchased or • shares are canceled. Reconciliation of Our Common Share Activity SHARES IN THOUSANDS 2017 2016 2015 Outstanding at beginning of year 748,528 510,483 524,474 Issuance from merger with Plum Creek (Note 4) — 278,887 — Stock options exercised 5,970 2,571 1,592 Issued for restricted stock units 605 840 365 Issued for performance shares 120 219 242 Preference shares converted to common — 23,345 — Repurchased — (67,817 ) (16,190 ) Outstanding at end of year 755,223 748,528 510,483 SHARE REPURCHASE PROGRAMS On August 13, 2014, our board of directors approved a stock repurchase program under which we were authorized to repurchase up to $700 million of outstanding shares (the 2014 Repurchase Program). The 2014 Repurchase Program replaced the prior 2011 stock repurchase program. During 2014, we repurchased 6,062,993 shares of common stock for $203 million under the 2014 Repurchase Program. During 2015, we completed the 2014 Repurchase Program by repurchasing 15,471,962 shares of common stock for $497 million . On August 27, 2015, our board of directors approved a new share repurchase program of up to $500 million on outstanding shares (the 2015 Repurchase Program), commencing upon completion of the 2014 Repurchase Program. During 2015, we repurchased 717,464 shares of common stock for $22 million under the 2015 Repurchase Program. As of December 31, 2016 , we had remaining authorization of $478 million for future stock repurchases. In November 2015, our board of directors approved a stock repurchase program under which we were authorized to repurchase up to $2.5 billion of outstanding shares subsequent to the closing of our merger with Plum Creek (the 2016 Repurchase Program). This new authorization replaced the August 2015 share repurchase authorization. Transaction fees incurred for repurchases are not counted as use of funds authorized for repurchases under the 2016 Share Repurchase Authorization. During 2016, we repurchased 67,816,810 shares of common stock for $2 billion under the 2016 Share Repurchase Authorization. We did not repurchase any shares of common stock during 2017. As of December 31, 2017 , we had remaining authorization of $500 million for future stock repurchases. We had 755,223 thousand shares of common stock outstanding as of December 31, 2017 . All common stock purchases under the 2016, 2015, and 2014 Repurchase Programs were made in open-market transactions. We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability to account for repurchases that have not been cash settled. There were no unsettled repurchases as of December 31, 2017 , or December 31, 2016 . CUMULATIVE OTHER COMPREHENSIVE INCOME (LOSS) Changes in amounts included in our cumulative other comprehensive income (loss) by component are: DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS Foreign currency translation adjustments Actuarial losses Prior service costs Actuarial losses Prior service credits Unrealized gains on available-for-sale securities Total Beginning balance as of January 1, 2016 $ 207 $ (1,372 ) $ (11 ) $ (77 ) $ 35 $ 6 $ (1,212 ) Other comprehensive income (loss) before reclassifications 25 (590 ) — 5 — 1 (559 ) Income taxes — 208 — (1 ) — — 207 Net other comprehensive income (loss) before reclassifications 25 (382 ) — 4 — 1 (352 ) Amounts reclassified from cumulative other comprehensive income (loss) (1) — 156 4 9 (7 ) — 162 Income taxes — (53 ) (2 ) (3 ) 1 — (57 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 103 2 6 (6 ) — 105 Total other comprehensive income (loss) 25 (279 ) 2 10 (6 ) 1 (247 ) Beginning balance as of January 1, 2017 $ 232 $ (1,651 ) $ (9 ) $ (67 ) $ 29 $ 7 $ (1,459 ) Other comprehensive income (loss) before reclassifications 32 (356 ) (3 ) 19 — 2 (306 ) Income taxes — 76 1 (5 ) — — 72 Net other comprehensive income (loss) before reclassifications 32 (280 ) (2 ) 14 — 2 (234 ) Amounts reclassified from cumulative other comprehensive income (loss) (1) — 195 4 8 (8 ) — 199 Income taxes — (66 ) (1 ) (3 ) 2 — (68 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 129 3 5 (6 ) — 131 Total other comprehensive income (loss) 32 (151 ) 1 19 (6 ) 2 (103 ) Ending balance as of December 31, 2017 $ 264 $ (1,802 ) $ (8 ) $ (48 ) $ 23 $ 9 $ (1,562 ) (1) Actuarial losses and prior service credits (costs) are included in the computation of net periodic benefit costs (credits). See Note: 9 Pension and Other Postretirement Benefit Plans . |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION This note provides details about: • our Long-Term Incentive Compensation Plan (2013 Plan), • share-based compensation resulting from our merger with Plum Creek, • how we account for share-based awards, • tax benefits of share-based awards, • types of share-based compensation and • unrecognized share-based compensation. Share-based compensation expense was: • $40 million in 2017 , • $60 million in 2016 and • $31 million in 2015 . The 2016 and 2015 amounts above contain awards to employees of the divested Cellulose Fibers businesses and are included in our results of discontinued operations. These amounts are: • $6 million in 2016 and • $6 million in 2015 . OUR LONG-TERM INCENTIVE COMPENSATION PLAN Our long-term incentive plans provide for share-based awards that include: • restricted stock, • restricted stock units, • performance shares • performance share units, • stock options and • stock appreciation rights. We may issue future grants of up to 21 million shares under the 2013 Plan (the Plan). We also have the right to reissue forfeited and expired grants. For restricted stock, restricted stock units, performance shares, performance share units or other equity grants: • An individual participant may receive a grant of up to 1 million shares annually. • No participant may be granted awards that exceed $10 million earned in a 12-month period. For stock options and stock appreciation rights: • An individual participant may receive a grant of up to 2 million shares in any one calendar year. • The exercise price is required to be the market price on the date of the grant. The Compensation Committee of our board of directors (the Committee) annually establishes an overall pool of stock awards available for grants based on performance. For stock-settled awards, we: • issue new stock into the marketplace and • generally do not repurchase shares in connection with issuing new awards. Our common shares would increase by approximately 32 million shares if all share-based awards were exercised or vested. These include: • all options, restricted stock units, and performance share units outstanding at December 31, 2017 , under the 2013 Plan and 2004 Plan; and • all remaining options, restricted stock units, and performance share units that could be granted under the 2013 Plan. SHARE-BASED COMPENSATION RESULTING FROM OUR MERGER WITH PLUM CREEK Replacement awards were granted as a result of the merger with Plum Creek. Eligible outstanding Plum Creek stock options, restricted stock units and deferred stock unit awards were converted into equivalent equity awards with respect to Weyerhaeuser Common Shares, after giving effect to the appropriate adjustments to reflect the consummation of the merger. In total, we issued replacement awards consisting of 1,953,128 stock options and 1,248,006 RSUs. We also assumed 289,910 value management awards (VMAs) through the merger with Plum Creek. Replacement Stock Option Awards The replacement stock option awards issued as a result of the merger with Plum Creek have similar exercise provisions as the terms of our current awards. All replacement stock option awards were fully vested prior to the date of the merger, so no expense will be recorded. The value of the replacement stock option awards was $5 million , which was included in the equity consideration issued in the merger as described in Note 4: Merger with Plum Creek . Replacement Restricted Stock Unit Awards The replacement RSUs issued as a result of the merger with Plum Creek have similar vesting provisions as the terms of existing Weyerhaeuser restricted stock unit awards. Expense for replacement RSUs will continue to be recognized over the remaining service period unless a qualifying termination occurs. A qualifying termination of an awardee will result in acceleration of vesting and expense recognition in the period that the qualifying termination occurs. Qualifying terminations during 2016 resulted in accelerated vesting of 705,394 of the replacement RSUs and recognition of $15 million of expense. The accelerated expense is included in the merger-related integration costs as described in Note 17: Charges for Integration and Restructuring, Closures and Asset Impairments . Value Management Awards Following the merger, the VMAs assumed were valued at target. All outstanding VMAs, if earned, were set to vest December 31, 2017, and will be paid in the first quarter 2018. The VMAs were classified and accounted for as liabilities, as they are settled in cash upon vesting. The expense recognized over the performance period subsequent to the merger was equal to the cash value of an award as of the last day of the performance period multiplied by the number of awards that were earned. Expense for VMAs was recognized over the remaining service period unless a qualifying termination occurs. A qualifying termination of an awardee resulted in the acceleration of vesting and expense recognition in the period that the qualifying termination occurred. Qualifying terminations during 2016 resulted in $6 million of expense recognized. This accelerated expense is included in merger-related integration costs as described in Note 17: Charges for Integration and Restructuring, Closures and Asset Impairments . HOW WE ACCOUNT FOR SHARE-BASED AWARDS When accounting for share-based awards we: • use a fair-value-based measurement for share-based awards and • recognize the cost of share-based awards in our consolidated financial statements. We recognize the cost of share-based awards in our Consolidated Statement of Operations over the required service period — generally the period from the date of the grant to the date when it is vested. Special situations include: • Awards that vest upon retirement — the required service period ends on the date an employee is eligible for retirement, including early retirement. • Awards that continue to vest following job elimination or the sale of a business — the required service period ends on the date the employment from the company is terminated. In these special situations, compensation expense from share-based awards is recognized over a period that is shorter than the stated vesting period. TAX BENEFITS OF SHARE-BASED AWARDS Our total income tax benefit from share-based awards — as recognized in our Consolidated Statement of Operations — for the last three years was: • $6 million in 2017 , • $12 million in 2016 and • $8 million in 2015 . The 2016 and 2015 amounts above contain income tax benefit from share-based awards to employees that were part of the Cellulose Fibers divestitures and are included in our results of discontinued operations. These amounts are: • $2 million in 2016 and • $2 million in 2015 . Tax benefits from share-based awards are accrued as stock compensation expense is recognized in the Consolidated Statement of Operations . Tax benefits from share-based awards are realized when: • restricted shares and restricted share units vest, • performance shares and performance share units vest, • stock options are exercised and • stock appreciation rights are exercised. TYPES OF SHARE-BASED COMPENSATION Our share-based compensation is in the form of: • restricted stock units, • performance share units, • stock options, • stock appreciation rights, • deferred compensation stock equivalent units and • value management awards assumed in merger with Plum Creek. RESTRICTED STOCK UNITS Through the Plan, we award restricted stock units — grants that entitle the holder to shares of our stock as the award vests. The Details Our restricted stock units granted in 2017 , 2016 and 2015 generally: • vest ratably over four years; • immediately vest in the event of death while employed or disability; • continue to vest upon retirement at an age of at least 62, but a portion of the grant is forfeited if retirement occurs before the one year anniversary of the grant; • continue vesting for one year in the event of involuntary termination when the retirement has not been met; and • will be forfeited upon termination of employment in all other situations including early retirement prior to age 62. Our Accounting The fair value of our restricted stock units is the market price of our stock on the grant-date of the awards. We generally record share-based compensation expense for restricted stock units over the four-year vesting period. Generally, for restricted stock units that continue to vest following the termination of employment, we record the share-based compensation expense over a required service period that is less than the stated vesting period. Activity The following table shows our restricted stock unit activity for 2017 . RESTRICTED STOCK UNITS (IN THOUSANDS) WEIGHTED AVERAGE GRANT-DATE FAIR VALUE Nonvested at December 31, 2016 1,583 $ 26.49 Granted 739 32.83 Vested (670) 27.23 Forfeited (137) 27.43 Nonvested at December 31, 2017 (1) 1,515 $ 29.12 (1) As of December 31, 2017, there were approximately 203 thousand restricted stock units that had met the requisite service period and will be released as identified in the grant terms. The weighted average grant-date fair value for restricted stock units was: • $32.83 in 2017 , • $30.25 in 2016 and • $35.41 in 2015 . The total grant-date fair value of restricted stock units vested was: • $18 million in 2017 , • $36 million in 2016 and • $14 million in 2015 . Nonvested restricted stock units accrue dividends that are paid out when restricted stock units vest. Any restricted stock units forfeited will not receive dividends. As restricted stock units vest, a portion of the shares awarded is withheld to cover employee taxes. As a result, the number of stock units vested and the number of common shares issued will differ. PERFORMANCE SHARE UNITS Through the Plan, we award performance share units — grants that entitle the holder to shares of our stock as the award vests. The Details The final number of shares awarded will range from 0 percent to 150 percent of each grant’s target, depending upon actual company performance. For shares granted in 2017, the ultimate number of performance share units earned is based on two measures: • our relative total shareholder return (TSR) ranking measured against the S&P 500 over a three-year period and • our relative TSR ranking measured against an industry peer group of companies over a three-year period. For shares granted in 2016, the ultimate number of performance share units earned is based on three measures: • our relative total shareholder return (TSR) ranking measured against the S&P 500 over a three-year period, • our relative TSR ranking measured against an industry peer group of companies over a three-year period and • achievement of Plum Creek merger cost synergy targets. For shares granted in 2015, the ultimate number of performance share units earned is based on two measures: • our relative total shareholder return (TSR) ranking measured against the S&P 500 over a three-year period and • our relative TSR ranking measured against an industry peer group of companies over a three-year period. The vesting provisions for performance share units granted in 2017, 2016 and 2015 were as follows: • vest 100 percent on the third anniversary of the grant date as long as the individual remains employed by the company; • fully vest in the event the participant dies or becomes disabled while employed; • continue to vest upon retirement at an age of at least 62, but a portion of the grant is forfeited if retirement occurs before the one year anniversary of the grant; • continue vesting for one year in the event of involuntary termination when the retirement criteria has not been met and the employee has met the second anniversary of the grant date; and • will be forfeited upon termination of employment in all other situations including early retirement prior to age 62. Our Accounting Since the awards contain a market condition, the effect of the market condition is reflected in the grant-date fair value which is estimated using a Monte Carlo simulation model. This model estimates the TSR ranking of the company over the performance period. Compensation expense is based on the estimated probable number of earned awards and recognized over the vesting period on an accelerated basis. Generally, compensation expense would be reversed if the performance condition is not met unless the requisite service period has been achieved. Weighted Average Assumptions Used in Estimating the Value of Performance Share Units 2017 2016 2015 Performance period 1/1/2017 – 12/31/2019 1/1/2016 – 12/31/2018 1/1/2015 – 12/31/2017 Expected dividends 3.74 % 3.92% - 5.37% 3.26 % Risk-free rate 0.68% - 1.55% 0.45% - 0.97% 0.05% - 1.07% Volatility 22.71% - 24.07% 21.87% - 28.09% 16.33% - 20.89% Weighted average grant-date fair value $ 37.93 $ 22.58 $ 34.75 Activity The following table shows our performance share unit activity for 2017 . GRANTS (IN THOUSANDS) WEIGHTED AVERAGE GRANT-DATE FAIR VALUE Nonvested at December 31, 2016 761 $ 25.23 Granted at target 346 37.93 Vested (130 ) 29.98 Forfeited (12 ) 30.93 Nonvested at December 31, 2017 (1) 965 $ 30.87 (1) As of December 31, 2017, there were approximately 41 thousand performance share units that had met the requisite service period and will be released as identified in the grant terms. The total grant-date fair value of performance share units vested was: • $4 million in 2017 , • $8 million in 2016 and • $9 million in 2015 . As performance share units vest, a portion of the shares awarded is withheld to cover participant taxes. As a result, the number of stock units vested and the number of common shares issued will differ. STOCK OPTIONS Stock options entitle award recipients to purchase shares of our common stock at a fixed exercise price. During 2017 , we did not grant any stock option awards. When granted in prior years, however, we granted stock options with an exercise price equal to the market price of our stock on the date of the grant. The Details Our stock options generally: • vest over four years of continuous service and • must be exercised within 10 years of the grant-date. The vesting and post-termination vesting terms for stock options granted in 2016 and 2015 were as follows: • vest ratably over four years; • vest or continue to vest in the event of death while employed or disability; • continue to vest upon retirement at an age of at least 62, but a portion of the grant is forfeited if retirement occurs before the one year anniversary of the grant; • continue to vest for one year in the event of involuntary termination when the retirement criteria has not been met; and • stop vesting for all other situations including early retirement prior to age 62. Our Accounting We use a Black-Scholes option valuation model to estimate the fair value of every stock option award on its grant-date. In our estimates, we use: • historical data — for option exercise time and employee terminations; • a Monte-Carlo simulation — for how long we expect granted options to be outstanding; and • the U.S. Treasury yield curve — for the risk-free rate. We use a yield curve over a period matching the expected term of the grant. The expected volatility in our valuation model is based on: • implied volatilities from traded options on our stock, • historical volatility of our stock and • other factors. Weighted Average Assumptions Used in Estimating Value of Stock Options Granted 2016 2015 Expected volatility 25.43 % 25.92 % Expected dividends 5.37 % 3.28 % Expected term (in years) 4.95 4.77 Risk-free rate 1.28 % 1.54 % Weighted average grant-date fair value $ 2.73 $ 5.85 Share-based compensation expense for stock options is generally recognized over the vesting period. There are exceptions for stock options awarded to employees who: • are eligible for retirement, • will become eligible for retirement during the vesting period or • whose employment is terminated during the vesting period due to job elimination or the sale of a business. In these cases, we record the share-based compensation expense over a required service period that is less than the stated vesting period. Activity The following table shows our option unit activity for 2017 . OPTIONS (IN THOUSANDS) WEIGHTED AVERAGE EXERCISE PRICE WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) AGGREGATE INTRINSIC VALUE (IN MILLIONS) Outstanding at December 31, 2016 14,712 $ 24.96 Granted — $ — Exercised (5,975) $ 22.71 Forfeited or expired (250) $ 27.75 Outstanding at December 31, 2017 (1) 8,487 $ 26.47 6.06 $ 75 Exercisable at December 31, 2017 5,374 $ 26.45 5.11 $ 133 (1) As of December 31, 2017, there were approximately 727 thousand stock options that had met the requisite service period and will be released as identified in the grant terms. The total intrinsic value of stock options exercised was: • $68 million in 2017 , • $18 million in 2016 and • $13 million in 2015 . The total grant-date fair value of stock options vested was: • $5 million in 2017 , • $14 million in 2016 and • $14 million in 2015 . STOCK APPRECIATION RIGHTS During 2017 , we did not grant any stock appreciation rights. When granted in prior years, however, we granted cash-settled stock appreciation rights as part of certain compensation awards. The Details Stock appreciation rights are similar to stock options. Employees benefit when the market price of our stock is higher on the exercise date than it was on the date the stock appreciation rights were granted. The differences are that the employee: • receives the benefit as a cash award and • does not purchase the underlying stock. The vesting conditions and exceptions are the same as for 10-year stock options. Details are in the Stock Options section earlier in this note. Stock appreciation rights are generally issued to employees outside of the U.S. Our Accounting We use a Black-Scholes option-valuation model to estimate the fair value of a stock appreciation right on its grant - date and every subsequent reporting date that the right is outstanding. Stock appreciation rights are liability-classified awards and the fair value is remeasured at every reporting date. The process used to develop our valuation assumptions is the same as for the 10-year stock options we grant. Details are in the Stock Options section earlier in this note. Weighted Average Assumptions Used to Re-measure Value of Stock Appreciation Rights at Year-End 2016 2015 Expected volatility 24.12 % 22.10 % Expected dividends 4.04 % 4.20 % Expected term (in years) 2.20 1.94 Risk-free rate 1.36 % 0.99 % Weighted average fair value $ 7.84 $ 6.96 Activity The following table shows our stock appreciation rights activity for 2017 . RIGHTS (IN THOUSANDS) WEIGHTED AVERAGE EXERCISE PRICE AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) AGGREGATE INTRINSIC VALUE (IN MILLIONS) Outstanding at December 31, 2016 386 $ 23.82 Granted — $ — Exercised (102 ) $ 24.08 Forfeited or expired (12 ) $ 30.39 Outstanding at December 31, 2017 272 $ 23.42 5.23 $ 3 Exercisable at December 31, 2017 168 $ 21.54 2.29 $ 2 The total liabilities paid for stock appreciation rights was: • $1 million in 2017 , • $1 million in 2016 and • $1 million in 2015 . UNRECOGNIZED SHARE-BASED COMPENSATION As of December 31, 2017 , our unrecognized share-based compensation cost for all types of share-based awards included $38 million related to non-vested equity-classified share-based compensation arrangements — expected to be recognized over a weighted average period of approximately 2.0 years . DEFERRED COMPENSATION STOCK EQUIVALENT UNITS Certain employees and our board of directors may defer compensation into stock-equivalent units. The Details The plan works differently for employees and directors. Eligible employees: • may choose to defer all or part of their bonus into stock-equivalent units; • may choose to defer part of their salary, except for executive officers; and • receive a 15 percent premium if the deferral is for at least five years. Our directors: • receive a portion of their annual retainer fee in the form of restricted stock units, which vest over one year and may be deferred into stock-equivalent units; • may choose to defer some or all of the remainder of their annual retainer fee into stock-equivalent units; and • do not receive a premium for their deferrals. Employees and directors also choose when the deferrals will be paid out although no deferrals may be paid until after the separation from service of the employee or director. Our Accounting We settle all deferred compensation accounts in cash for our employees. Our directors receive shares of common stock as payment for stock-equivalent units. In addition, we credit all stock-equivalent accounts with dividend equivalents. The number of common shares to be issued in the future to directors is 616 thousand . Stock-equivalent units are: • liability-classified awards and • re-measured to fair value at every reporting date. The fair value of a stock-equivalent unit is equal to the market price of our stock. Activity The number of stock-equivalent units outstanding in our deferred compensation accounts were: • 804 thousand as of December 31, 2017 , • 1,004 thousand as of December 31, 2016 and • 1,003 thousand as of December 31, 2015 . |
CHARGES FOR INTEGRATION AND RES
CHARGES FOR INTEGRATION AND RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS | 12 Months Ended |
Dec. 31, 2017 | |
CHARGES FOR INTEGRATION AND RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS | CHARGES FOR INTEGRATION AND RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS Items Included in Our Charges for Integration and Restructuring, Closures and Asset Impairments DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Integration and restructuring charges related to our merger with Plum Creek: Termination benefits $ 11 $ 54 $ — Acceleration of share-based compensation related to qualifying terminations (Note 16) — 21 — Acceleration of pension benefits related to qualifying terminations (Note 9) — 5 — Professional services 16 52 14 Other integration and restructuring costs 7 14 — Total integration and restructuring charges related to our merger with Plum Creek 34 146 14 Charges related to closures and other restructuring activities: Termination benefits 3 4 4 Other closures and restructuring costs 3 4 6 Total charges related to closures and other restructuring activities 6 8 10 Impairment of long-lived assets 154 16 15 Total charges for integration and restructuring, closures and asset impairments $ 194 $ 170 $ 39 INTEGRATION, RESTRUCTURING AND CLOSURES During 2017, we incurred and accrued for termination benefits (primarily severance) and non-recurring professional services costs directly attributable to our merger with Plum Creek. During 2016, we incurred and accrued for termination benefits (primarily severance), accelerated share-based payment costs, and accelerated pension benefits based upon actual and expected qualifying terminations of certain employees as a result of restructuring decisions made subsequent to the merger. We also incurred non-recurring professional services costs for investment banking, legal and consulting, and certain other fees directly attributable to our merger with Plum Creek. During 2015, we incurred non-recurring professional services costs for banking, legal and consulting fees directly attributable to our merger with Plum Creek. We also incurred restructuring and closure charges related to the closure of four distribution centers for our Wood Products business. Other restructuring and closure costs include lease termination charges, dismantling and demolition of plant and equipment, gain or loss on disposition of assets, environmental cleanup costs and incremental costs to wind down operating facilities. ACCRUED TERMINATION BENEFITS Changes in accrued severance related to restructuring during 2017 were as follows: DOLLAR AMOUNTS IN MILLIONS Accrued severance as of December 31, 2016 $ 26 Charges 14 Payments (21 ) Accrued severance as of December 31, 2017 $ 19 ASSET IMPAIRMENTS The Impairment of Long-Lived Assets and Goodwill sections of Note 1: Summary of Significant Accounting Policies provide details about how we account for these impairments. Additional information can also be found in our Critical Accounting Policies . Long-Lived Assets Our long-lived asset impairments were primarily related to the following: • 2017 — In second quarter 2017, we recognized an impairment charge to the timberlands and manufacturing assets of our Uruguayan operations. On June 2, 2017, our Board of Directors approved an agreement to sell all of the Company's equity in the Uruguayan operations to a consortium led by BTG Pactual's Timberland Investment Group (TIG). As a result of this agreement, the related assets met the criteria to be classified as held for sale at June 30, 2017. This designation required us to record the related assets at fair value, less an amount of estimated selling costs, and thus recognize a $147 million noncash pretax impairment charge. This amount was recorded in the Timberlands segment. The fair value of the related assets was primarily based on the agreed upon cash purchase price of $403 million . On September 1, 2017, we announced the completion of the sale. Refer to Note 3: Discontinued Operations and Other Divestitures for further details on the Uruguayan operations sale. Additionally, in September 2017, we recognized an impairment charge of $6 million related to a nonstrategic asset in our Wood Products segment. The fair value of the asset was determined using the value indicated in a purchase sale agreement. • 2016 — We reviewed all of our development projects during 2016. As a result, we ceased development and initiated plans to sell certain projects. We analyzed each of the projects we ceased development and initiated plans to sell and determined which had a book value greater than fair value. We recognized a $15 million impairment charge in Real Estate & ENR which represents the fair value less direct selling costs of these projects. The fair values of the projects were determined using significant unobservable inputs (Level 3) based on broker opinion of value reports. Our remaining projects did not have any indicators of impairment; however, we corroborated this evaluation with an assessment of the undiscounted cash flows for the legacy Weyerhaeuser projects or noted that projects acquired from Plum Creek were recorded at estimated fair value when acquired in 2016. • 2015 — We recognized an impairment charge of $13 million related to a nonstrategic asset held in Unallocated Items. The fair value of the asset was determined using significant unobservable inputs (Level 3) based on a discounted cash flow model. The asset was subsequently sold for no gain during 2015. |
OTHER OPERATING COSTS (INCOME),
OTHER OPERATING COSTS (INCOME), NET | 12 Months Ended |
Dec. 31, 2017 | |
OTHER OPERATING INCOME, NET | OTHER OPERATING COSTS (INCOME), NET Other operating costs (income), net: • includes both recurring and occasional income and expense items and • can fluctuate from year to year. Various Income and Expense Items Included in Other Operating Costs (Income), Net DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Gain on disposition of nonstrategic assets (1) $ (16 ) $ (60 ) $ (12 ) Foreign exchange losses (gains), net (2) (1 ) (6 ) 47 Litigation expense, net 20 24 23 Gain on sale of timberlands (3) (99 ) — — Environmental remediation insurance recoveries (42 ) — — Other, net 10 (11 ) (17 ) Total other operating costs (income), net $ (128 ) $ (53 ) $ 41 (1) Gain on disposition of nonstrategic assets in 2016 included a $36 million pretax gain recognized in first quarter 2016 on the sale of our Federal Way, Washington headquarters campus. (2) Foreign exchange gains and losses result from changes in exchange rates primarily related to our U.S. dollar denominated debt that is held by our Canadian subsidiary. (3) Gain on sale of 100,000 acres sold to Twin Creeks during Q4 2017. Refer to Note 8: Related Parties for further information. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES | INCOME TAXES This note provides details about our income taxes applicable to continuing operations: • earnings before income taxes, • provision for income taxes, • effective income tax rate, • deferred tax assets and liabilities, • unrecognized tax benefits and • our ongoing IRS tax matter. Income taxes related to discontinued operations are discussed in Note 3: Discontinued Operations and Other Divestitures . The Income Taxes section of Note 1: Summary of Significant Accounting Policies provides details about how we account for our income taxes. Tax Legislation On December 22, 2017, H.R. 1, commonly known as the Tax Cuts and Jobs Act (the "Tax Act"), was enacted. The Tax Act contains significant changes to corporate taxation, including the reduction of the corporate tax rate from 35 percent to 21 percent . As a result of the reduction in the corporate tax rate, we have revalued our deferred tax assets and liabilities and have recorded a tax expense of $74 million during 2017, which reduced our net deferred tax asset. The deemed repatriation on deferred foreign income provisions does not impact our operations due to the fact that we have no foreign undistributed earnings. EARNINGS BEFORE INCOME TAXES Domestic and Foreign Earnings from Continuing Operations Before Income Taxes DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Domestic earnings $ 643 $ 353 $ 326 Foreign earnings 73 151 27 Total earnings before income taxes $ 716 $ 504 $ 353 PROVISION FOR INCOME TAXES Provision (Benefit) for Income Taxes from Continuing Operations DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Current: Federal $ 10 $ 1 $ 7 State — 1 (2 ) Foreign 82 11 (5 ) Total current 92 13 — Deferred: Federal 61 37 (69 ) State (18 ) (3 ) (3 ) Foreign (1 ) 42 14 Total deferred 42 76 (58 ) Total income tax provision (benefit) $ 134 $ 89 $ (58 ) EFFECTIVE INCOME TAX RATE Effective Income Tax Rate Applicable to Continuing Operations DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 U.S. federal statutory income tax $ 250 $ 177 $ 123 State income taxes, net of federal tax benefit (2 ) (3 ) (5 ) REIT income not subject to federal income tax (198 ) (99 ) (158 ) REIT benefit from change to tax law — — (13 ) Tax affect of U.S. corporate rate change 74 — — Foreign taxes 54 (4 ) 4 Provision for unrecognized tax benefits (2 ) — (7 ) Repatriation of Canadian earnings (22 ) 24 — Other, net (20 ) (6 ) (2 ) Total income tax provision (benefit) $ 134 $ 89 $ (58 ) Effective income tax rate 18.8 % 17.6 % (16.4 )% DEFERRED TAX ASSETS AND LIABILITIES Deferred tax assets and liabilities reflect the future tax impact created by differences between the timing of when income or deductions are recognized for pretax financial book reporting purposes versus income tax purposes. Deferred tax assets represent a future tax benefit (or reduction to income taxes in a future period), while deferred tax liabilities represent a future tax obligation (or increase to income taxes in a future period). Our deferred tax assets and liabilities have been revalued for the reduction in the U.S. corporate tax rate. Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) Related to Continuing Operations DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Net noncurrent deferred tax asset $ 268 $ 293 Net noncurrent deferred tax liability — — Net deferred tax asset (liability) $ 268 $ 293 Items Included in Our Deferred Income Tax Assets (Liabilities) DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Postretirement benefits $ 50 $ 76 Pension 306 395 State tax credits 56 46 Other reserves 38 14 Net operating loss carryforwards 18 25 Other 152 218 Gross deferred tax assets 620 774 Valuation allowance (63 ) (56 ) Net deferred tax assets 557 718 Property, plant and equipment (154 ) (214 ) Timber installment notes (116 ) (180 ) Other (19 ) (31 ) Deferred tax liabilities (289 ) (425 ) Net deferred tax asset (liability) $ 268 $ 293 Other Information About Our Deferred Income Tax Assets (Liabilities) Other information about our deferred income tax assets (liabilities) include: • net operating loss and credit carryforwards, • valuation allowances and • reinvestment of undistributed earnings. Net Operating Loss and Credit Carryforwards Our gross federal, state and foreign net operating loss carryforwards as of the end of 2017 totaled $1.0 billion as follows: • U.S. REIT - $684 million , which expire from 2030 through 2036 ; • State - $349 million , which expire from 2018 through 2037 ; and • Foreign - none. Our gross state credit carryforwards at the end of 2017 totaled $70 million , which includes $22 million that expire from 2018 through 2031 and $48 million that do not expire. Our U.S. TRS has $6 million in foreign tax credit carryforwards that expire in 2027 . Valuation Allowances With the exception of the valuation allowance discussed below, we believe it is more likely than not that we will have sufficient future taxable income to realize our deferred tax assets. Our valuation allowance on our deferred tax assets was $63 million at the end of 2017 , related to state credits, state net operating losses and passive foreign tax credits. Reinvestment of Undistributed Earnings It is our practice and intention to reinvest the earnings of our foreign subsidiaries into those respective operations. As such, we have not made a provision for U.S. income taxes or additional foreign withholding taxes for potential distribution of future earnings of our foreign subsidiaries which are permanently reinvested. As of December 31, 2017 , we had no foreign undistributed earnings. UNRECOGNIZED TAX BENEFITS Unrecognized tax benefits represent potential future obligations to taxing authorities if uncertain tax positions we have taken on previously filed tax returns are not sustained. The total gross amount of unrecognized tax benefits as of December 31, 2017 , and 2016 , is $4 million and $6 million , of which a net amount of $2 million and $5 million , respectively, would affect our tax rate if recognized. The net liability recorded in our Consolidated Balance Sheet related to unrecognized tax benefits is $2 million as of December 31, 2017 , comprised of the $4 million gross unrecognized tax benefit amount net of $2 million in loss carryforwards available to offset the liability. The net liability as of December 31, 2016 was $5 million , comprised of $6 million gross unrecognized tax benefit amount net of $2 million loss carryforwards available to offset the liability and includes $1 million of interest. In accordance with our accounting policy, we accrue interest and penalties related to unrecognized tax benefits as a component of income tax expense. See Note 1: Summary of Significant Accounting Policies. Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Balance at beginning of year $ 6 $ 6 Lapse of statute (2 ) — Balance at end of year $ 4 $ 6 As of December 31, 2017 , none of our U.S. federal income tax returns are under examination, with years 2013 forward open to examination. We are undergoing examinations in state jurisdictions for tax years 2013 through 2016, with tax years 2009 forward open to examination. We are also undergoing examinations in foreign jurisdictions for tax years 2013 through 2014, with tax years 2010 forward open to examination . We do not expect that the outcome of any examination will have a material effect on our consolidated financial statements; however, audit outcomes and the timing of audit settlements are subject to significant uncertainty. In the next 12 months, we estimate a decrease of $1 million in unrecognized tax benefits due to the lapse of applicable statutes of limitation. ONGOING IRS MATTER In connection with the merger with Plum Creek, we acquired equity interests in Southern Diversified Timber, LLC, a timberland joint venture (Timberland Venture) with an affiliate of Campbell Global LLC (TCG Member). On August 31, 2016, the Timberland Venture redeemed TCG Member's interest and became a fully consolidated, wholly-owned subsidiary of Weyerhaeuser. We received a Notice of Final Partnership Administrative Adjustment (FPAA), dated July 20, 2016, from the Internal Revenue Service (IRS) in regard to Plum Creek's 2008 U.S. federal income tax treatment of the transaction forming the Timberland Venture. The IRS is asserting that the transfer of the timberlands to the Timberland Venture was a taxable transaction to Plum Creek at the time of the transfer rather than a nontaxable capital contribution. We have filed a petition in the U.S. Tax Court and will vigorously contest this adjustment. In the event that we are unsuccessful in this tax litigation, we could be required to recognize and distribute gain to shareholders of approximately $600 million and pay built-in gains tax of approximately $100 million . We would also be required to pay interest on both of those amounts, which would be substantial. As much as 80 percent of any such gain distribution could be made with our common stock, and shareholders would be subject to tax on the distribution at the applicable capital gains tax rate. Alternatively, we could elect to retain the gain and pay corporate-level tax to minimize interest costs to the company. Although the outcome of this process cannot be predicted with certainty, we are confident in our position based on U.S. tax law and believe we will be successful in defending it. Accordingly, no reserve has been recorded related to this matter. |
GEOGRAPHIC AREAS
GEOGRAPHIC AREAS | 12 Months Ended |
Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
GEOGRAPHIC AREAS | GEOGRAPHIC AREAS This note provides selected key financial data according to the geographical locations of our customers. The selected key financial data includes: • sales to unaffiliated customers, • export sales from the U.S. and • long-lived assets. SALES Our sales to unaffiliated customers outside the U.S. are primarily to customers in Canada, China and Japan. Our export sales include: • logs, lumber and wood chips to Japan and • logs and lumber to other Pacific Rim countries. Sales by Geographic Area DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Sales to unaffiliated customers: U.S. $ 6,168 $ 5,451 $ 4,362 Canada 472 341 307 Japan 352 369 363 China 107 108 99 Other foreign countries 97 96 115 Total $ 7,196 $ 6,365 $ 5,246 Export sales from the U.S.: Japan $ 295 $ 314 $ 309 China 102 103 97 Other foreign countries 148 98 91 Total $ 545 $ 515 $ 497 LONG-LIVED ASSETS Our long-lived assets — used in the generation of revenues in the different geographical areas — are nearly all in the U.S. and Canada. Our long-lived assets include: • property and equipment, including construction in progress, • timber and timberlands, • minerals and mineral rights and • goodwill. Long-Lived Assets by Geographic Area DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2017 DECEMBER 31, 2016 (1) DECEMBER 31, 2015 (1) U.S. $ 14,922 $ 15,700 $ 8,260 Canada 223 206 460 Other foreign countries — 527 654 Total $ 15,145 $ 16,433 $ 9,374 (1) Includes assets of discontinued operations. |
SELECTED QUARTERLY FINANCIAL IN
SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited) | SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited) Quarterly financial data provides a review of our results and performance throughout the year. Our earnings per share for the full year do not always equal the sum of the four quarterly earnings-per share amounts because of common share activity during the year. Key Quarterly Financial Data for the Last Two Years DOLLAR AMOUNTS IN MILLIONS EXCEPT PER-SHARE FIGURES FIRST QUARTER SECOND QUARTER THIRD QUARTER (1) FOURTH QUARTER (1) FULL YEAR 2017: Net sales $ 1,693 $ 1,808 $ 1,872 $ 1,823 $ 7,196 Operating income from continuing operations 293 157 205 476 1,131 Earnings from continuing operations before income taxes 181 58 103 374 716 Net earnings 157 24 130 271 582 Net earnings attributable to Weyerhaeuser common shareholders 157 24 130 271 582 Basic net earnings per share attributable to Weyerhaeuser common shareholders 0.21 0.03 0.17 0.36 0.77 Diluted net earnings per share attributable to Weyerhaeuser common shareholders 0.21 0.03 0.17 0.36 0.77 Dividends paid per share 0.31 0.31 0.31 0.32 1.25 Market prices - high/low $34.37 - $29.88 $35.50 - $32.28 $34.46 - $30.95 $36.92 - $33.92 $36.92 - $29.88 2016: Net sales $ 1,405 $ 1,655 $ 1,709 $ 1,596 $ 6,365 Operating income from continuing operations 139 248 261 174 822 Earnings from continuing operations before income taxes 72 161 184 87 504 Net earnings 81 168 227 551 1,027 Net earnings attributable to Weyerhaeuser common shareholders 70 157 227 551 1,005 Basic net earnings per share attributable to Weyerhaeuser common shareholders 0.11 0.21 0.30 0.74 1.40 Diluted net earnings per share attributable to Weyerhaeuser common shareholders 0.11 0.21 0.30 0.73 1.39 Dividends paid per share 0.31 0.31 0.31 0.31 1.24 Market prices - high/low $31.38 - $22.06 $32.56 - $26.55 $33.17 - $29.52 $33.28 - $28.58 $33.28 - $22.06 (1) Third and fourth quarter 2016 include a gain on our Cellulose Fibers divestitures. Refer to Note 3: Discontinued Operations and Other Divestitures for further information. |
CHARGES FOR PRODUCT REMEDIATION
CHARGES FOR PRODUCT REMEDIATION (Notes) | 12 Months Ended |
Dec. 31, 2017 | |
CHARGES FOR PRODUCT REMEDIATION | CHARGES FOR PRODUCT REMEDIATION In July 2017, we announced we were implementing a solution to address concerns regarding our TJI® Joists with Flak Jacket® Protection product. This issue is isolated to Flak Jacket product manufactured after December 1, 2016, and does not affect any of our other products. We estimate that approximately 2,400 homes were affected. We recorded a liability of $50 million in second quarter 2017 based on the preliminary information that was available at that time. As remediation work progressed, we obtained additional information and experience regarding the scope of the required remediation efforts and associated costs. Accordingly, we adjusted our liability to account for the higher than originally expected cost per home for remediation, a modest increase in the estimated number of homes affected, as well as additional homebuilder and homeowner reimbursements. We recorded pretax charges of $190 million and $50 million in the third and fourth quarters 2017, respectively, to accrue for expected costs associated with the remediation. Our charges related to remediation efforts total $290 million for the period ended December 31, 2017 . The charges recorded are attributable to our Wood Products segment and were recorded in "Charges for product remediation," on the Consolidated Statement of Operations . As of December 31, 2017 , $192 million has been paid out in relation to our remediation efforts. The remaining accrual of $98 million is recorded in "Accrued liabilities" on the Consolidated Balance Sheet . The company ultimately expects a significant portion of the total expense will be covered by insurance, however, as of the date of these financial statements no amounts related to potential recoveries have been recorded. |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Real Estate Investment Trust Election (REIT) | OUR ELECTION TO BE TAXED AS A REAL ESTATE INVESTMENT TRUST (REIT) Starting with our 2010 fiscal year, we elected to be taxed as a REIT. REIT income can be distributed to shareholders without first paying corporate level tax, substantially eliminating the double taxation on income. We expect to derive most of our REIT income from investments in timberlands, including the sale of standing timber through pay-as-cut sales contracts and lump sum timber deeds. We were no longer subject to the REIT built-in gains tax as of December 31, 2014. Our built-in gains tax period expired in 2015 due to a change in U.S. tax law that statutorily shortened the built-in gains tax period to 5 years from 10 years. This means we are no longer subject to federal corporate level income taxes on sales of REIT property that had a fair market value in excess of tax basis when we converted to a REIT on January 1, 2010. We continue to be required to pay federal corporate income taxes on earnings of our Taxable REIT Subsidiary (TRS), which includes our Wood Products segment and portions of our Timberlands and Real Estate, Energy and Natural Resources (Real Estate & ENR) segments. |
Consolidated Financial Statements | Consolidated Financial Statements Our consolidated financial statements provide an overall view of our results and financial condition. They include our accounts and the accounts of entities that we control, including: • majority-owned domestic and foreign subsidiaries and • variable interest entities in which we are the primary beneficiary. They do not include our intercompany transactions and accounts, which are eliminated, and noncontrolling interests are presented as a separate component of equity. We account for investments in and advances to unconsolidated equity affiliates using the equity method. We record our share of equity in net earnings of equity affiliates within "Equity earnings from joint ventures" in our Consolidated Statement of Operations in the period in which the earnings are recorded by our equity affiliates. |
Our Business Segments | Our Business Segments Reportable business segments are determined based on the company’s "management approach," as defined by Financial Accounting Standards Board (FASB) ASC 280, “Segment Reporting.” The management approach is based on the way the chief operating decision maker organizes the segments within a company for making decisions about resources to be allocated and assessing their performance. During fiscal year 2016, the company's chief operating decision maker changed the information regularly reviewed when making decisions to allocate resources and assess performance. Since this change, the company reports its financial performance based on three business segments: Timberlands, Real Estate & ENR, and Wood Products. Prior to revising our segment structure, activities related to the Real Estate & ENR business segment were reported as part of the Timberlands business segment. Amounts for all periods presented have been reclassified throughout the consolidated financial statements and disclosures to conform to the new segment structure. We are principally engaged in: • growing and harvesting timber; • manufacturing, distributing and selling products made from trees; • maximizing the value of every acre we own through the sale of higher and better use (HBU) properties; and • monetizing reserves of minerals, oil, gas, coal, and other natural resources on our timberlands. Our business segments are organized based primarily on products and services. Our Business Segments and Products SEGMENT PRODUCTS AND SERVICES Timberlands Logs, timber, and leased recreational access Real Estate & ENR Sales of timberlands; rights to explore for and extract hard minerals, construction materials, oil and gas production, wind and coal; and equity interests in our Real Estate Development Ventures Wood Products Softwood lumber, engineered wood products, structural panels, medium density fiberboard and building materials distribution We also transfer raw materials, semi-finished materials and end products among our business segments. Because of this intracompany activity, accounting for our business segments involves: • pricing products transferred between our business segments at current market values and • allocating joint conversion and common facility costs according to usage by our business segment product lines. Gains or charges not related to or allocated to an individual operating segment are held in Unallocated Items. This includes a portion of items such as: share-based compensation; pension and postretirement costs; foreign exchange transaction gains and losses associated with financing; the elimination of intersegment profit in inventory and the LIFO reserve. |
Foreign Currency Translation | Foreign Currency Translation Local currencies are the functional currencies for most of our operations outside the U.S. We translate foreign currencies into U.S. dollars in two ways: • assets and liabilities — at the exchange rates in effect as of our balance sheet date; and • revenues and expenses — at average monthly exchange rates throughout the year. |
Estimates | Estimates We prepare our financial statements according to U.S. generally accepted accounting principles (U.S. GAAP). This requires us to make estimates and assumptions during our reporting periods and at the date of our financial statements. The estimates and assumptions affect our: • reported amounts of assets, liabilities and equity; • disclosure of contingent assets and liabilities; and • reported amounts of revenues and expenses. While we do our best in preparing these estimates, actual results can and do differ from those estimates and assumptions. |
Fair Value Measurements | Fair Value Measurements We use a fair value hierarchy in accounting for certain nonfinancial assets and liabilities including: • long-lived assets (asset groups) measured at fair value for an impairment assessment; • reporting units measured at fair value in the first step of a goodwill impairment test; • nonfinancial assets and nonfinancial liabilities measured at fair value in the second step of a goodwill impairment assessment; • assets acquired and liabilities assumed in a business acquisition; and • asset retirement obligations initially measured at fair value. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: • Level 1 — Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs are: – quoted prices for similar assets or liabilities in an active market; – quoted prices for identical or similar assets or liabilities in markets that are not active; or – inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data. • Level 3 — Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. |
Reclassifications | Reclassifications We have reclassified certain balances and results from the prior year to be consistent with our 2017 reporting. This makes year-to-year comparisons easier. Our reclassifications had no effect on consolidated net earnings or equity. Our reclassifications present the adoption of new accounting pronouncements on our Consolidated Statement of Operations and in the related footnotes. Refer to discussion of new accounting pronouncements below. |
New Accounting Pronouncements | New Accounting Pronouncements Revenue Recognition In May 2014, the FASB issued Accounting Standards Update (ASU) 2014-09, a comprehensive new revenue recognition model that requires an entity to recognize revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration it expects to receive in exchange for those goods or services. In August 2015, FASB issued ASU 2015-14, which deferred the effective date for an additional year. In March 2016, FASB issued ASU 2016-08, which does not change the core principle of the guidance; however, it does clarify the implementation guidance on principal versus agent considerations. In April 2016, FASB issued ASU 2016-10, which clarifies two aspects of ASU 2014-09: identifying performance obligations and the licensing implementation guidance. In May 2016, FASB issued ASU 2016-12, which amends ASU 2014-09 to provide improvements and practical expedients to the new revenue recognition model. In December 2016, the FASB issued ASU 2016-20, which amends ASU 2014-09 for technical corrections and to correct for unintended application of the guidance. In February 2017, FASB issued ASU 2017-05, which clarifies the scope of ASC 610-20 and impacts accounting for partial sales of nonfinancial assets. We have adopted and implemented the new revenue recognition guidance effective January 1, 2018. The new standard is required to be applied retrospectively to each prior reporting period presented (full retrospective transition method) or retrospectively with the cumulative effect of initially applying it recognized at the date of initial application (cumulative effect method). We have adopted using the cumulative effect method. The adoption of the new revenue recognition guidance will not materially impact our Consolidated Statement of Operations , Consolidated Balance Sheet , or Consolidated Statement of Cash Flows . We plan to add expanded disclosures, beginning in first quarter 2018. Inventory Valuation Methods In July 2015, FASB issued ASU 2015-11, which simplifies the measurement of inventories valued under most methods, including our inventories valued under FIFO – the first-in, first-out – and moving average cost methods. Inventories valued under LIFO – the last-in, first-out method – are excluded. Under this new guidance, inventories valued under these methods would be valued at the lower of cost or net realizable value, with net realizable value defined as the estimated selling price less reasonable costs to sell the inventory. The new guidance is effective prospectively for fiscal periods starting after December 15, 2016, and early adoption is permitted. We adopted on January 1, 2017, and determined this pronouncement does not have a material impact on our consolidated financial statements and related disclosures. Lease Recognition In February 2016, FASB issued ASU 2016-02, which requires lessees to recognize assets and liabilities for the rights and obligations created by those leases and requires both capital and operating leases to be recognized on the balance sheet. The new guidance is effective for fiscal years beginning after December 15, 2018, and early adoption is permitted. We expect to adopt on January 1, 2019. We are still evaluating certain aspects of the revised guidance and subsequent revisions either made or being contemplated by the FASB, including application of the available practical expedients. We expect adoption to result in the recognition of the present value of the future commitments on operating leases disclosed in Note 14: Legal Proceedings, Commitments and Contingencies on our Consolidated Balance Sheet . Intra-Entity Transfers (other than inventory) In October 2016, FASB issued ASU 2016-16, which requires immediate recognition of the income tax consequences upon intra-entity transfers of assets other than inventory. The new guidance is effective for annual periods beginning after December 15, 2017, and early adoption is permitted. We adopted this accounting standard update on January 1, 2017. As a result of this adoption, our opening balance sheet was adjusted through "Retained Earnings" by $19 million for prior period intra-entity transfers. Adoption of this standard did not have a material impact on our Consolidated Statement of Cash Flows or Consolidated Statement of Operations . Pension and Other Post Retirement Benefit (Costs)/Credits In March 2017, FASB issued ASU 2017-07, which requires that an employer report the service cost component of pension and other postretirement benefit costs in the Consolidated Statement of Operations in the same line item or items as other compensation costs arising from services rendered by the pertinent employees. This requirement is consistent with how we have historically presented our pension service costs. The other requirement of ASU 2017-07 is to present the remaining components of pension and other postretirement benefit costs (i.e., interest, expected return on plan assets, amortization of actuarial gains or losses, and amortization of prior service credits or costs) in the Consolidated Statement of Operations separately from the service cost component and outside a subtotal of income from operations. The new guidance is effective for annual periods beginning after December 15, 2017, and early adoption is permitted. We adopted this accounting standard as of January 1, 2017. As a result, we reclassified amounts related to other components of pension and other postretirement benefit costs from their prior financial statements captions ("Costs of products sold," "General and administrative expenses," and "Other operating costs (income), net") into a new financial statement caption titled "Non-operating pension and other postretirement benefit (costs) credits" in our Consolidated Statement of Operations . The adoption of ASU 2017-07 did not impact "Net earnings," nor did it impact our Consolidated Balance Sheet . Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, FASB issued ASU 2018-02, which allows for the reclassification of certain income tax effects related to the Tax Cuts and Jobs Act between “Accumulated other comprehensive income” and “Retained earnings.” This ASU relates to the requirement that adjustments to deferred tax liabilities and assets related to a change in tax laws or rates to be included in “Income from continuing operations”, even in situations where the related items were originally recognized in “Other comprehensive income” (rather than in “Income from continuing operations”). The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years, with early adoption permitted. Adoption of this ASU is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the tax laws or rates were recognized. We are still evaluating certain aspects of this ASU as well as the related impacts it may have on our financial statements. |
Property and Equipment | Property and Equipment We maintain property accounts on an individual asset basis. Here is how we handle major items: • Improvements to and replacements of major units of property are capitalized. • Maintenance, repairs and minor replacements are expensed. • Depreciation is calculated using a straight-line method at rates based on estimated service lives. • We capitalize costs associated with logging roads that we intend to utilize for a period longer than one year. These roads are then amortized over an estimated service life. • Cost and accumulated depreciation of property sold or retired are removed from the accounts and the gain or loss is included in earnings. In general, additions are classified into components, each with its own estimated useful life as determined at the time of purchase. |
Timber and Timberlands | Timber and Timberlands We carry timber and timberlands at cost less depletion. Depletion refers to the carrying value of timber that is harvested, lost as a result of casualty, or sold. Key activities affecting how we account for timber and timberlands include: • reforestation, • depletion and • forest management in Canada. Reforestation. Generally, we capitalize initial site preparation and planting costs as reforestation. Generally, we expense costs after the first planting as they are incurred or over the period of expected benefit. These costs include: • fertilization, • vegetation and insect control, • pruning and precommercial thinning, • property taxes, and • interest. Accounting practices for these costs do not change when timber becomes merchantable and harvesting starts. Timber depletion. To determine depletion rates, we divide the net carrying value of timber by the related volume of timber estimated to be available over the growth cycle. To determine the growth cycle volume of timber, we consider: • regulatory and environmental constraints, • our management strategies, • inventory data improvements, • growth rate revisions and recalibrations and • known dispositions and inoperable acres. We include the cost of timber harvested in the carrying values of raw materials and product inventories. As these inventories are sold to third parties, we include them in the cost of products sold. Forest Management in Canada. We manage timberlands under long-term licenses in various Canadian provinces that are: • granted by the provincial governments; • granted for initial periods of 15 to 25 years; and • renewable provided we meet reforestation, operating and management guidelines. Calculation of the fees we pay on the timber we harvest: • varies from province to province, • is tied to product market pricing and • depends upon the allocation of land management responsibilities in the license. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review long-lived assets — including certain identifiable intangibles — for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Impaired assets held for use are written down to fair value. Impaired assets held for sale are written down to fair value less cost to sell. We determine fair value based on: • appraisals, • market pricing of comparable assets, • discounted value of estimated cash flows from the asset and • replacement values of comparable assets. |
Goodwill | Goodwill Goodwill is the purchase price minus the fair value of net assets acquired when we buy another entity. We assess goodwill for impairment: • using a fair-value-based approach and • at least annually — at the beginning of the fourth quarter. In 2017 , the fair value of the reporting unit with goodwill substantially exceeded its carrying value. |
Financial Instruments | Financial Instruments We estimate the fair value of financial instruments where appropriate. The assumptions we use — including the discount rate and estimates of cash flows — can significantly affect our fair-value amounts. Our fair values are estimates and may not match the amounts we would realize upon sale or settlement of our financial positions. To estimate the fair value of long-term debt, we used the following valuation approaches: • market approach — based on quoted market prices we received for the same types and issues of our debt; or • income approach — based on the discounted value of the future cash flows using market yields for the same type and comparable issues of debt. We believe that our variable rate long-term debt instruments have net carrying values that approximate their fair values with only insignificant differences. The inputs to these valuations are based on market data obtained from independent sources or information derived principally from observable market data. The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at the measurement date. FAIR VALUE OF OTHER FINANCIAL INSTRUMENTS We believe that our other financial instruments, including cash and cash equivalents, short-term investments, mutual fund investments held in grantor trusts, receivables, and payables, have net carrying values that approximate their fair values with only insignificant differences. This is primarily due to the short-term nature of these instruments and the allowance for doubtful accounts. |
Cash and Cash Equivalents and Accounts Payable | Cash Equivalents Cash equivalents are investments with original maturities of 90 days or less. We state cash equivalents at cost, which approximates market. Accounts Payable Our banking system replenishes our major bank accounts daily as checks we have issued are presented for payment. As a result, we may have negative book cash balances due to outstanding checks that have not yet been paid by the bank. These negative balances would be included in "Accounts payable" on our Consolidated Balance Sheet . Changes in these negative cash balances would be reported as financing activities in our Consolidated Statement of Cash Flows . We had no negative book cash balances as of December 31, 2017 , and December 31, 2016 . |
Concentration of Risk | Concentration of Risk We disclose customers that represent a concentration of risk. As of December 31, 2017 , and December 31, 2016 , no customer accounted for 10 percent or more of our net sales |
Revenue Recognition | Revenue Recognition Operations recognizes revenue when title and the risk of loss transfers to the customer, in general this is upon shipment to customers. For certain export sales, revenue is recognized when title transfers at the foreign port. For timberland sales, we recognize revenue when title and possession have been transferred to the buyer and all other criteria for sale and profit recognition have been satisfied. |
Inventories | Inventories We state inventories at the lower of cost or net realizable value. Cost includes labor, materials and production overhead. LIFO — the last-in, first-out method — applies to major inventory products held at our U.S. domestic locations. We began to use the LIFO method for domestic products in the 1940s as required to conform with the tax method elected. Subsequent acquisitions of entities added new products under the FIFO — the first-in, first-out method — or moving average cost methods that have continued under those methods. The FIFO or moving average cost methods applies to the balance of our domestic raw material and product inventories as well as for all material and supply inventories and all foreign inventories. |
Shipping and Handling Costs | Shipping and Handling Costs We classify shipping and handling costs in "Costs of products sold" on our Consolidated Statement of Operations . |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method. Unrecognized tax benefits represent potential future funding obligations to taxing authorities if uncertain tax positions the company has taken on previously filed tax returns are not sustained. In accordance with the company’s accounting policy, accrued interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. We recognize deferred tax assets and liabilities to reflect: • future tax consequences due to differences between the carrying amounts for financial reporting purposes and the tax bases of certain items and • operating loss and tax credit carryforwards. To measure deferred tax assets and liabilities, we: • determine when the differences between the carrying amounts and tax bases of affected items are expected to be recovered or resolved and • use enacted tax rates expected to apply to taxable income in those years. |
Share-Based Compensation | Share-Based Compensation We generally measure the fair value of share-based awards on the dates they are granted or modified. These measurements establish the cost of the share-based awards for accounting purposes. We then recognize the cost of share-based awards in our Consolidated Statement of Operations over each employee’s required service period. Note 16: Share-Based Compensation provides more information about our share-based compensation. WE ACCOUNT FOR SHARE-BASED AWARDS When accounting for share-based awards we: • use a fair-value-based measurement for share-based awards and • recognize the cost of share-based awards in our consolidated financial statements. We recognize the cost of share-based awards in our Consolidated Statement of Operations over the required service period — generally the period from the date of the grant to the date when it is vested. Special situations include: • Awards that vest upon retirement — the required service period ends on the date an employee is eligible for retirement, including early retirement. • Awards that continue to vest following job elimination or the sale of a business — the required service period ends on the date the employment from the company is terminated. In these special situations, compensation expense from share-based awards is recognized over a period that is shorter than the stated vesting period. TAX |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans We recognize the overfunded or underfunded status of our defined benefit pension and other postretirement plans on our Consolidated Balance Sheet and recognize changes in the funded status through comprehensive income (loss) in the year in which the changes occur. Actuarial valuations determine the amount of the pension and other postretirement benefit obligations and the net periodic benefit cost we recognize. The net periodic benefit cost includes: • cost of benefits provided in exchange for employees’ services rendered during the year; • interest cost of the obligations; • expected long-term return on plan assets; • gains or losses on plan settlements and curtailments; • amortization of prior service costs and plan amendments over the average remaining service period of the active employee group covered by the plans or the average remaining life expectancy in situations where the plan participants affected by the plan amendment are inactive; and • amortization of cumulative unrecognized net actuarial gains and losses — generally in excess of 10 percent of the greater of the benefit obligation or market-related value of plan assets at the beginning of the year — over the average remaining service period of the active employee group covered by the plans or the average remaining life expectancy in situations where the plan participants are inactive. Pension plans. We have pension plans covering most of our employees. Determination of benefits differs for salaried, hourly and union employees: • Salaried employee benefits are based on each employee’s highest monthly earnings for five consecutive years during the final 10 years before retirement. • Hourly and union employee benefits generally are stated amounts for each year of service. • Union employee benefits are set through collective-bargaining agreements. We contribute to our U.S. and Canadian pension plans according to established funding standards. The funding standards for the plans are: • U.S. pension plans — according to the Employee Retirement Income Security Act of 1974; and • Canadian pension plans — according to the applicable provincial pension act and the Income Tax Act. Postretirement benefits other than pensions. We provide certain postretirement health care and life insurance benefits for some retired employees. In some cases, we pay a portion of the cost of the benefit. Note 9: Pension and Other Postretirement Benefit Plans provides additional information about changes made in our postretirement benefit plans during 2017 and 2016 . Valuation of Our Plan Assets Pension assets are stated at fair value as of the reporting date. Fair value is based on the amount that would be received to sell an asset or paid to settle a liability in an orderly transaction between market participants at the reporting date. We do not consider forced or distressed sale scenarios. Instead, we consider both observable and unobservable inputs that reflect assumptions applied by market participants when setting the exit price of an asset or liability in an orderly transaction within the principal market for that asset or liability. We value the pension plan assets based upon the observability of exit pricing inputs and classify pension plan assets based upon the lowest level input that is significant to the fair value measurement of the pension plan assets in their entirety. The fair value hierarchy is: • Level 1: Inputs are unadjusted quoted prices for identical assets and liabilities traded in an active market. • Level 2: Inputs are quoted prices in non-active markets for which pricing inputs are observable either directly or indirectly at the reporting date. • Level 3: Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. Investments for which fair value is measured using the net asset value per share as a practical expedient are not categorized within the fair value hierarchy. Cash and short-term investments are valued at cost, which approximates market. Common and preferred stocks are valued at exit prices quoted in public markets. Hedge funds, private equities, and related fund units are valued based on the net asset values of the funds. These values represent the per-unit price at which new investors are permitted to invest and existing investors are permitted to exit. When net asset values as of the end of the year have not been received, we estimate fair value by adjusting the most recently reported net asset values for market events and cash flows between the interim date and the end of the year. Derivative instruments are valued based upon valuation statements received from each derivative’s counterparty. These contracts are not publicly traded. |
Environmental Remediation | Environmental Remediation We accrue losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when the recovery is deemed probable and does not exceed the amount of losses previously recorded. Estimates. We believe it is reasonably possible, based on currently available information and analysis, that remediation costs for all identified sites may exceed our existing reserves by up to $150 million . This estimate, in which those additional costs may be incurred over several years, is the upper end of the range of reasonably possible additional costs. The estimate: • is much less certain than the estimates on which our accruals currently are based and • uses assumptions that are less favorable to us among the range of reasonably possible outcomes. In estimating our current accruals and the possible range of additional future costs, we: • assumed we will not bear the entire cost of remediation of every site, • took into account the ability of other potentially responsible parties to participate and • considered each party ’ s financial condition and probable contribution on a per-site basis. |
Earnings Per Share | "Basic earnings" per share is net earnings available to common shareholders divided by the weighted average number of our outstanding common shares, including stock equivalent units where there is no circumstance under which those shares would not be issued. "Diluted earnings" per share is net earnings available to common shareholders divided by the sum of the: • weighted average number of our outstanding common shares and • the effect of our outstanding dilutive potential common shares. Dilutive potential common shares may include: • outstanding stock options, • restricted stock units, • performance share units and • preference shares. We use the treasury stock method to calculate the dilutive effect of our outstanding stock options, restricted stock units and performance share units. Share-based payment awards that are contingently issuable upon the achievement of specified performance or market conditions are included in our diluted earnings per share calculation in the period in which the conditions are satisfied. |
Stock Repurchase Programs Policy | All common stock purchases under the 2016, 2015, and 2014 Repurchase Programs were made in open-market transactions. We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability to account for repurchases that have not been cash settled. |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Sales and Contribution (Charge) to Earnings | Sales and Contribution (Charge) to Earnings DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS REAL ESTATE (1) WOOD UNALLOCATED ITEMS (2) AND INTERSEGMENT ELIMINATIONS CONSOLIDATED Sales to unaffiliated customers 2017 $ 1,942 $ 280 $ 4,974 $ — $ 7,196 2016 $ 1,805 $ 226 $ 4,334 $ — $ 6,365 2015 $ 1,273 $ 101 $ 3,872 $ — $ 5,246 Intersegment sales 2017 $ 762 $ 1 $ — $ (763 ) $ — 2016 $ 840 $ 1 $ 68 $ (909 ) $ — 2015 $ 830 $ — $ 82 $ (912 ) $ — Contribution (charge) to earnings from continuing operations 2017 $ 532 $ 146 $ 569 $ (138 ) $ 1,109 2016 $ 499 $ 55 $ 512 $ (131 ) $ 935 2015 $ 470 $ 79 $ 258 $ (113 ) $ 694 (1) The Real Estate & ENR segment includes the equity earnings from, investments in and advances to our Real Estate Development Ventures (as defined and described in Note 8: Related Parties ), which are accounted for under the equity method. (2) 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, equity earnings from our Timberland Venture (as defined and described in Note 8: Related Parties ), the elimination of intersegment profit in inventory and the LIFO reserve. As a result of reclassifying our former Cellulose Fibers segment as discontinued operations, Unallocated items also includes retained indirect corporate overhead costs previously allocated to the former segment. |
Reconciliation of Contribution to Earnings to Net Earnings | Reconciliation of Contribution to Earnings to Net Earnings DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Net contribution to earnings from continuing operations $ 1,109 $ 935 $ 694 Net contribution to earnings from discontinued operations — 957 156 Total contribution to earnings 1,109 1,892 850 Interest expense, net of capitalized interest (1) (393 ) (436 ) (347 ) Income before income taxes (1) 716 1,456 503 Income taxes (1) (134 ) (429 ) 3 Net earnings $ 582 $ 1,027 $ 506 (1) Results shown for 2016 and 2015 include amounts for both continuing and discontinued operations. Refer to Note 3: Discontinued Operations and Other Divestitures for further information. |
Additional Financial Information | Additional Financial Information DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS REAL ESTATE & ENR WOOD PRODUCTS UNALLOCATED ITEMS CONSOLIDATED Depreciation, depletion and amortization 2017 $ 356 $ 15 $ 145 $ 5 $ 521 2016 $ 366 $ 13 $ 129 $ 4 $ 512 2015 $ 208 $ 1 $ 106 $ 10 $ 325 Net pension and postretirement cost (credit) (1) 2017 $ 7 $ 1 $ 23 $ 66 $ 97 2016 $ 8 $ — $ 22 $ (43 ) $ (13 ) 2015 $ 9 $ — $ 27 $ (11 ) $ 25 Charges for integration and restructuring, closures and asset impairments (2) 2017 $ 147 $ — $ 13 $ 34 $ 194 2016 $ — $ 15 $ 7 $ 148 $ 170 2015 $ — $ — $ 10 $ 29 $ 39 Equity earnings (loss) from joint ventures 2017 $ — $ 1 $ — $ — $ 1 2016 $ — $ 2 $ — $ 20 $ 22 2015 $ — $ — $ — $ — $ — Capital expenditures 2017 $ 115 $ 2 $ 299 $ 3 $ 419 2016 $ 116 $ 1 $ 297 $ 11 $ 425 2015 $ 75 $ — $ 287 $ 3 $ 365 Investments in and advances to joint ventures 2017 $ — $ 31 $ — $ — $ 31 2016 $ — $ 56 $ — $ — $ 56 2015 $ — $ — $ — $ — $ — (1) Net pension and postretirement cost (credit) excludes special items, as well as the recognition of curtailments, settlements and special termination benefits due to closures, restructuring or divestitures. See Note 9: Pension and Other Postretirement Benefit Plans for more information. (2) See Note 17: Charges for Integration and Restructuring, Closures and Asset Impairments for more information. |
Total Assets | Total Assets DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS and REAL ESTATE & ENR WOOD PRODUCTS UNALLOCATED ITEMS CONSOLIDATED Total assets (1)(2) 2017 $ 14,122 $ 2,145 $ 1,792 $ 18,059 2016 $ 15,608 $ 1,910 $ 1,725 $ 19,243 2015 $ 7,260 $ 1,541 $ 3,919 $ 12,720 (1) Assets attributable to the Real Estate & ENR business segment are combined with total assets for the Timberlands segment because we do not produce separate balance sheets internally. (2) Unallocated Items total assets includes assets of discontinued operations. |
DISCONTINUED OPERATIONS AND O34
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Sales and Net Earnings from Discontinued Operations | Sales and Net Earnings from Discontinued Operations DOLLAR AMOUNTS IN MILLIONS 2016 (1) 2015 (2) Total net sales $ 1,537 $ 1,860 Costs of products sold 1,283 1,573 Gross margin 254 287 Selling expenses 12 14 General and administrative expenses 29 30 Research and development expenses 5 6 Charges for integration and restructuring, closures and asset impairments (3) 63 2 Other operating income, net (27 ) (26 ) Operating income 172 261 Equity loss from joint venture (4 ) (105 ) Interest expense, net of capitalized interest (5 ) (6 ) Earnings from discontinued operations before income taxes 163 150 Income taxes (97 ) (55 ) Net earnings from operations 66 95 Net gain on divestiture of Cellulose Fibers 546 — Net earnings from discontinued operations $ 612 $ 95 (1) Discontinued operations in 2016 includes 335 days of the pulp business, 305 days of our printing papers joint venture operations, and 244 days of the liquid packaging board business. (2) Discontinued operations in 2015 includes a full year of the Cellulose Fibers business segment operations. (3) Charges for integration and restructuring, closures and asset impairments consist of costs related to our strategic evaluation of the Cellulose Fibers businesses and transaction-related costs. |
Cash Flows from Discontinued Operations | Cash Flows from Discontinued Operations DOLLAR AMOUNTS IN MILLIONS 2016 (1) 2015 (2) Net cash provided by (used in) operating activities $ 196 $ 429 Net cash provided by (used in) investing activities $ 2,356 $ (118 ) (1) Discontinued operations in 2016 includes 335 days of the pulp business, 305 days of our printing papers joint venture operations, and 244 days of the liquid packaging board business, and the cash flows associated with the CF divestitures. (2) Discontinued operations in 2015 includes a full year of the Cellulose Fibers business segment operations. |
Cellulose Fibers | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Components of the net gain on divestitures | The following table presents the components of the net gain on the divestiture of Cellulose Fibers: DOLLAR AMOUNTS IN MILLIONS 2016 Proceeds, net of cash and cash equivalents disposed of $ 2,486 Less: Net book value of assets and liabilities disposed of (1,678 ) Transaction costs, net of reimbursement (19 ) (1,697 ) Pretax gain on Cellulose Fibers divestitures 789 Income taxes (243 ) Net gain on Cellulose Fibers divestitures $ 546 |
MERGER WITH PLUM CREEK (Tables)
MERGER WITH PLUM CREEK (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Summarized Unaudited Pro Forma Information that Presents Combined Amounts as if this Merger Occurred at the Beginning of 2015 [Table Text Block] | Summarized Unaudited Pro Forma Information that Presents Combined Amounts as if this Merger Occurred at the Beginning of 2015 DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES 2016 2015 Net sales $ 6,525 $ 6,664 Net earnings from continuing operations attributable to Weyerhaeuser common shareholders $ 519 $ 487 Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, basic $ 0.69 $ 0.61 Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, diluted $ 0.68 $ 0.61 |
Initial and Final Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed as of the Merger Date [Table Text Block] | Initial and Final Estimated Fair Value of Identifiable Assets Acquired and Liabilities Assumed as of the Merger Date DOLLAR AMOUNTS IN MILLIONS PRELIMINARY ALLOCATION MEASUREMENT PERIOD ADJUSTMENTS FINAL ALLOCATION Current assets $ 128 $ 10 $ 138 Timber and timberlands 8,124 2 8,126 Minerals and mineral rights 312 6 318 Property and equipment 272 5 277 Equity investment in Timberland Venture 876 (29 ) 847 Equity investment in Real Estate Development Ventures 88 (3 ) 85 Other assets 163 4 167 Total assets acquired 9,963 (5 ) 9,958 Current liabilities 610 — 610 Long-term debt 2,056 — 2,056 Note payable to Timberland Venture 837 1 838 Other liabilities 77 (6 ) 71 Total liabilities assumed 3,580 (5 ) 3,575 Net assets acquired $ 6,383 $ — $ 6,383 |
NET EARNINGS PER SHARE (Tables)
NET EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Basic and Diluted Earnings per Share | Calculation of Weighted Average Number of Outstanding Common Shares - Dilutive SHARES IN THOUSANDS 2017 2016 2015 Weighted average number of outstanding shares - basic 753,085 718,560 516,371 Dilutive potential common shares: Stock options 2,571 2,672 2,342 Restricted stock units 582 756 381 Performance share units 428 413 524 Total effect of outstanding dilutive potential common shares 3,581 3,841 3,247 Weighted average number of outstanding common shares - dilutive 756,666 722,401 519,618 |
Potential Shares Not Included in the Computation of Diluted Earnings per Share | Potential Shares Not Included in the Computation of Diluted Earnings per Share SHARES IN THOUSANDS 2017 2016 2015 Stock options 1,351 1,462 5,016 Performance share units 799 384 155 Preference shares (1) — — 25,307 (1) See Note 15: Shareholders' Interest for more information. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventories as of the End of Our Last Two Years | Inventories as of the End of Our Last Two Years DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, LIFO inventories: Logs $ 17 $ 18 Lumber, plywood, panels, and fiberboard 66 61 Other products 10 10 FIFO or moving average cost inventories: Logs 38 21 Lumber, plywood, panels, fiberboard and engineered wood products 91 73 Other products 77 90 Materials and supplies 84 85 Total $ 383 $ 358 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |
Carrying Value of Property and Equipment and Estimated Service Lives | Carrying Value of Property and Equipment and Estimated Service Lives DOLLAR AMOUNTS IN MILLIONS RANGE OF LIVES DECEMBER 31, DECEMBER 31, Property and equipment, at cost: Land N/A $ 88 $ 90 Buildings and improvements 15-35 867 789 Machinery and equipment 5-25 3,037 3,022 Roads 10-35 782 773 Other 3-10 182 194 Total cost 4,956 4,868 Accumulated depreciation and amortization (3,338 ) (3,306 ) Property and equipment, net $ 1,618 $ 1,562 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Changes in Deposit of Timberlands | Changes in our deposit from contribution of timberlands to related party balance during 2016 and 2017 were as follows: DOLLAR AMOUNTS IN MILLIONS Balance at December 31, 2015 $ — Initial cash receipt upon contribution of timberlands to Twin Creeks Venture 440 Lease payments to Twin Creeks Venture (17 ) Distributions from Twin Creeks Venture 3 Balance at December 31, 2016 $ 426 Lease payments to Twin Creeks Venture (8 ) Distributions from Twin Creeks Venture 2 Recognition of contributed timberlands (420 ) Balance at December 31, 2017 $ — |
PENSION AND OTHER POSTRETIREM40
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Funded Status of Our Plans | The funded status of the plans we sponsor is determined by comparing the projected benefit obligation with the fair value of plan assets at the end of the year. The following table demonstrates how our plans' funded status is reflected on the Consolidated Balance Sheet . DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2017 2016 2017 2016 Funded status: Fair value of plan assets $ 5,514 $ 5,351 $ — $ — Projected benefit obligations (6,795 ) (6,469 ) (200 ) (225 ) Funded status $ (1,281 ) $ (1,118 ) $ (200 ) $ (225 ) Presentation on our Consolidated Balance Sheet: Noncurrent assets $ 45 $ 27 $ — $ — Current liabilities (21 ) (28 ) (19 ) (21 ) Noncurrent liabilities (1,305 ) (1,117 ) (181 ) (204 ) Funded status $ (1,281 ) $ (1,118 ) $ (200 ) $ (225 ) |
Changes in Fair Value of Plan Assets | Changes in Fair Value of Plan Assets DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2017 2016 2017 2016 Fair value of plan assets at beginning of year (estimated) $ 5,351 $ 5,491 $ — $ — Adjustment for final fair value of plan assets 18 7 — — Actual return on plan assets 553 27 — — Foreign currency translation 59 29 — — Employer contributions and benefit payments 57 78 20 21 Plan participants’ contributions — — 6 7 Plan transfers 3 1 — — Plan acquisitions — 137 — — Benefits paid (includes lump sum settlements) (527 ) (419 ) (26 ) (28 ) Fair value of plan assets at end of year (estimated) $ 5,514 $ 5,351 $ — $ — |
Changes in Projected Benefit Obligations of Our Pension and Other Postretirement Benefit Plans | Changes in Projected Benefit Obligations of Our Pension and Other Postretirement Benefit Plans DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2017 2016 2017 2016 Reconciliation of projected benefit obligation: Projected benefit obligation beginning of year $ 6,469 $ 6,211 $ 225 $ 240 Service cost 35 48 — — Interest cost 264 277 8 8 Plan participants’ contributions — — 6 7 Actuarial (gains) losses 489 120 (18 ) (5 ) Foreign currency translation 59 27 5 3 Benefits paid (includes lump sum settlements) (527 ) (419 ) (26 ) (28 ) Plan amendments and other 3 — — — Plan transfers 3 1 — — Plan acquisitions — 199 — — Change in control enhanced benefits — 5 — — Projected benefit obligation at end of year $ 6,795 $ 6,469 $ 200 $ 225 |
Schedules of Allocation of Our Plans' Assets | The net pension plan assets, when categorized in accordance with this fair value hierarchy, are as follows. Investments valued using net asset value (NAV) as a practical expedient are presented to reconcile with total plan assets. DOLLAR AMOUNTS IN MILLIONS 2017 LEVEL 1 LEVEL 2 LEVEL 3 NAV TOTAL Pension trust investments: Cash and short-term investments $ 580 $ 2 $ — $ — $ 582 Common and preferred stock 1 — — — 1 Hedge fund and related investments 59 — 10 3,168 3,237 Private equity and related investments — — 102 1,120 1,222 Derivative instruments: Assets — 31 445 — 476 Liabilities — — — — — Total pension trust investments 640 33 557 4,288 5,518 Accrued liabilities, net (16 ) Pension trust net assets 5,502 Canadian nonregistered plan assets: Cash and short-term investments 6 — — — 6 Common and preferred stock 6 — — — 6 Total Canadian nonregistered plan assets 12 — — — 12 Total plan assets $ 5,514 DOLLAR AMOUNTS IN MILLIONS 2016 LEVEL 1 LEVEL 2 LEVEL 3 NAV TOTAL Pension trust investments: Cash and short-term investments $ 715 $ 16 $ — $ — $ 731 Common and preferred stock 7 — — — 7 Hedge fund and related investments 62 — 4 2,957 3,023 Private equity and related investments — — 75 1,138 1,213 Derivative instruments: Assets — 10 376 — 386 Liabilities — (8 ) — — (8 ) Total pension trust investments 784 18 455 4,095 5,352 Accrued liabilities, net (11 ) Pension trust net investments 5,341 Canadian nonregistered plan assets: Cash and short-term investments 5 — — — 5 Common and preferred stock 5 — — — 5 Total Canadian nonregistered plan assets 10 — — — 10 Total plan assets $ 5,351 |
Reconciliation of Pension Plan Assets Measured at Level 3 Fair Value | A reconciliation of the beginning and ending balances of the pension plan assets measured at fair value using significant unobservable inputs (Level 3) is presented below: DOLLAR AMOUNTS IN MILLIONS INVESTMENTS Hedge funds and related investments Private equity and related investments Derivative instruments, net Total Balance as of December 31, 2015 $ 3 $ 52 $ 491 $ 546 Net realized gains (losses) (1 ) (2 ) 134 131 Net change in unrealized gains (losses) 2 (3 ) (121 ) (122 ) Purchases — 21 — 21 Sales — (18 ) — (18 ) Settlements — — (128 ) (128 ) Transfers into Level 3 — 25 — 25 Transfers out of Level 3 — — — — Balance as of December 31, 2016 4 75 376 455 Net realized gains (losses) (1 ) (30 ) 15 (16 ) Net change in unrealized gains (losses) 2 41 67 110 Purchases — 14 — 14 Sales (1 ) — — (1 ) Settlements — — (13 ) (13 ) Transfers into Level 3 6 19 — 25 Transfers out of Level 3 — (17 ) — (17 ) Balance as of December 31, 2017 $ 10 $ 102 $ 445 $ 557 |
Actual Returns on Assets Held by Our Pension Trusts | Actual Returns Between Assets Held by Our Pension Trusts The percentage of actual return on assets held by our pension trusts in 2017 based on valuations as of year-end is as follows: 2017 2016 2015 Direct investments 72 % 44 % 77 % Derivative instruments 28 % 56 % 23 % Total 100 % 100 % 100 % |
Assumptions We Use in Estimating Health Care Benefit Costs | Assumptions We Use in Estimating Health Care Benefit Cost Trends 2017 2016 U.S. CANADA U.S. CANADA Weighted health care cost trend rate assumed for next year 8.40% for Pre-Medicare and 4.50% for HRA 5.10 % 8.90% for Pre-Medicare and 4.50% for HRA 4.90 % Rate that the cost trend rate gradually declines to 4.50 % 4.30 % 4.50 % 4.30 % Year the cost trend rate is reached 2037 2028 2037 2028 |
Effect of a One Percent Change in Health Care Costs | Effect of a One Percent Change in Health Care Costs AS OF DECEMBER 31, 2017 (DOLLAR AMOUNTS IN MILLIONS) 1% INCREASE 1% DECREASE Effect on total service and interest cost components less than $1 less than $(1) Effect on accumulated postretirement benefit obligation $ 7 $ (7 ) |
Net Periodic Benefit Cost (Credit) | Net Periodic Benefit Cost (Credit) DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2017 2016 2015 2017 2016 2015 Net periodic benefit cost (credit): Service cost (1) $ 35 $ 48 $ 57 $ — $ — $ — Interest cost 264 277 265 8 8 9 Expected return on plan assets (409 ) (495 ) (476 ) — — — Amortization of actuarial loss 195 156 182 8 9 10 Amortization of prior service cost (credit) 4 4 4 (8 ) (7 ) (9 ) Accelerated pension costs for Plum Creek merger-related change-in-control provisions — 5 — — — — Net periodic benefit cost (credit) $ 89 $ (5 ) $ 32 $ 8 $ 10 $ 10 (1) Service cost includes $13 million in 2016 and $17 million in 2015 for employees that were part of our Cellulose Fibers divestitures. These charges are included in our results of discontinued operations. Curtailment and special termination benefits are related to involuntary terminations due to restructuring activities. |
Estimated Amortization from Cumulative Other Comprehensive Loss | Estimated Amortization from Cumulative Other Comprehensive Loss in 2018 DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS TOTAL Net actuarial loss $ 242 $ 8 $ 250 Prior service cost (credit) 3 (8 ) (5 ) Net effect cost $ 245 $ — $ 245 |
Estimated Projected Benefit Payments for the Next 10 Years | Estimated Projected Benefit Payments for the Next 10 Years DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2018 $ 369 $ 19 2019 371 18 2020 374 17 2021 374 16 2022 376 15 2023-2027 1,902 65 |
Qualified and Registered Plans [Member] | |
Schedules of Allocation of Our Plans' Assets | Assets within our qualified and registered pension plans in our U.S. and Canadian pension trusts were invested as follows: DECEMBER 31, 2017 DECEMBER 31, 2016 Cash and short-term investments 10.6 % 13.7 % Common and preferred stock — 0.1 Hedge funds and related investments 58.8 56.6 Private equity and related investments 22.2 22.7 Derivative instruments, net 8.7 7.1 Accrued liabilities (0.3 ) (0.2 ) Total 100.0 % 100.0 % |
Pension | |
Rates We Use in Estimating Our Benefit Obligations | Rates We Use in Estimating Our Benefit Obligations PENSION DECEMBER 31, DECEMBER 31, Discount rates: United States 3.70 % 4.30 % Canada 3.50 % 3.70 % Lump sum distributions (1)(2) PPA Table PPA Table Rate of compensation increase: Salaried: United States 13.00% to 2.00% decreasing with participant age 13.00% to 2.00% decreasing with participant age Canada 3.25 % 3.50 % Hourly: United States 13.00% to 2.30% decreasing with participant age 13.00% to 2.30% decreasing with participant age Canada 3.00 % 3.25 % Lump sum or installment distributions election (2) 60.00 % 60.00 % (1) PPA Phased Table: Interest and mortality assumptions as mandated by Pension Protection Act of 2006 including the phase out of the prior interest rate basis in 2013. (2) U.S. qualified salaried and nonqualified plans only |
Estimating Our Net Periodic Benefit Costs | Estimating Our Net Periodic Benefit Costs PENSION 2017 2016 2015 Discount rates: United States 4.30 % 4.50 % 4.10 % Canada 3.70 % 4.00 % 3.90 % Lump sum distributions (1)(2) PPA Table PPA Table PPA Table Expected return on plan assets: Qualified/registered plans (3) 8.00 % 9.00% for all plans except 7.00% for plans assumed from Plum Creek 9.00 % Nonregistered plans 3.50 % 3.50 % 3.50 % Rate of compensation increase: Salaried: United States 13.00% to 2.00% decreasing with participant age 13.00% to 2.00% decreasing with participant age 2.50% for 2015 Canada 3.50 % 3.50 % 2.50% for 2015 Hourly: United States 13.00% to 2.30% decreasing with participant age 13.00% to 2.30% decreasing with participant age 3.00 % Canada 3.25 % 3.25 % 3.25 % Lump sum distributions election (2) 60.00 % 60.00 % 60.00 % (1) PPA Phased Table: Interest and mortality assumptions as mandated by Pension Protection Act of 2006 including the phase out of the prior interest rate basis in 2013. (2) U.S. qualified salaried and nonqualified plans only (3) Beginning in 2017 and continuing in 2018 we will use an assumed expected return on plan assets of 8.00 percent for qualified and registered pension plans. |
Derivative instruments | Qualified and Registered Plans [Member] | |
Schedules of Allocation of Our Plans' Assets | The table below shows the fair value and aggregate notional amount of the derivative instruments held by our pension trusts at the end of the last two years. DOLLAR AMOUNTS IN MILLIONS FAIR VALUE NOTIONAL DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, Equity and fixed income index derivatives, net $ 19 $ 10 $ 501 $ 405 Foreign currency derivatives, net 12 (5 ) 1,413 2,811 Total return swaps, net 445 373 1,443 1,515 Total $ 476 $ 378 $ 3,357 $ 4,731 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accrued Liabilities | Accrued liabilities were comprised of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Wages, salaries and severance pay $ 150 $ 178 Pension and other postretirement benefits 40 49 Vacation pay 33 33 Taxes – Social Security and real and personal property 24 20 Interest 111 120 Customer rebates and volume discounts 48 39 Deferred income 48 40 Accrued income taxes 19 139 Product remediation accrual (Note 18) 98 — Other 74 74 Total $ 645 $ 692 |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Letters of Credit and Surety Bonds | The amounts of other letters of credit and surety bonds we have entered into as of the end of our last two years are included in the following table: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Letters of credit $ 37 $ 38 Surety bonds $ 134 $ 125 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Instrument [Line Items] | |
Long-Term Debt by Types and Interest Rates (Includes Current Portion) | Long-Term Debt by Types and Interest Rates (Includes Current Portion) DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, 6.95% debentures due 2017 $ — $ 281 7.00% debentures due 2018 62 62 7.375% notes due 2019 500 500 Variable rate term loan credit facility matures 2020 — 550 9.00% debentures due 2021 150 150 4.70% debentures due 2021 597 606 7.125% debentures due 2023 191 191 5.207% debentures due 2023 885 889 4.625% notes due 2023 500 500 3.25% debentures due 2023 324 324 8.50% debentures due 2025 300 300 7.95% debentures due 2025 136 136 7.70% debentures due 2026 150 150 7.35% debentures due 2026 62 62 7.85% debentures due 2026 100 100 Variable rate term loan credit facility matures 2026 225 — 6.95% debentures due 2027 300 300 7.375% debentures due 2032 1,250 1,250 6.875% debentures due 2033 275 275 Other 1 2 6,008 6,628 Less unamortized discounts (5 ) (5 ) Less unamortized debt expense (11 ) (13 ) Total $ 5,992 $ 6,610 Portion due within one year $ 62 $ 281 |
Amounts of Long-Term Debt Due Annually for the Next Five Years and the Total Amount Due After 2022 | Amounts of Long-Term Debt Due Annually for the Next Five Years and the Total Amount Due After 2022 DOLLAR AMOUNTS IN MILLIONS (1) 2018 $ 62 2019 500 2020 — 2021 719 2022 — Thereafter 4,675 (1) Excludes $36 million of unamortized discounts, capitalized debt expense and fair value adjustments (related to Plum Creek merger). |
FAIR VALUE OF FINANCIAL INSTR44
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Estimated fair values and carrying values of our long-term debt | The estimated fair values and carrying values of our long-term debt consisted of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2017 DECEMBER 31, 2016 CARRYING VALUE FAIR VALUE (LEVEL 2) CARRYING VALUE FAIR VALUE (LEVEL 2) Long-term debt (including current maturities): Fixed rate $ 5,768 $ 6,823 $ 6,061 $ 6,925 Variable rate 224 225 549 550 Total Debt $ 5,992 $ 7,048 $ 6,610 $ 7,475 |
LEGAL PROCEEDINGS, COMMITMENT45
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |
Changes in the Reserve for Environmental Remediation | Changes in the Reserve for Environmental Remediation DOLLAR AMOUNTS IN MILLIONS Reserve balance as of December 31, 2016 $ 34 Reserve charges and adjustments, net 29 Payments (15 ) Reserve balance as of December 31, 2017 $ 48 Total active sites as of December 31, 2017 37 |
Changes in the Reserve for Asset Retirement Obligations | Changes in the Reserve for Asset Retirement Obligations DOLLAR AMOUNTS IN MILLIONS Reserve balance as of December 31, 2016 (1) $ 29 Reserve charges and adjustments, net 12 Payments (11 ) Other adjustments (2) 2 Reserve balance as of December 31, 2017 $ 32 (1) Reserve balance for continuing operations (2) Primarily related to a foreign currency remeasurement gain for our Canadian reforestation obligation |
Future Commitments on Operating Leases | Our operating lease commitments as of December 31, 2017 were: DOLLAR AMOUNTS IN MILLIONS 2018 $ 40 2019 35 2020 32 2021 29 2022 27 Thereafter 161 |
SHAREHOLDERS' INTEREST (Tables)
SHAREHOLDERS' INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reconciliation of Our Common Share Activity | Reconciliation of Our Common Share Activity SHARES IN THOUSANDS 2017 2016 2015 Outstanding at beginning of year 748,528 510,483 524,474 Issuance from merger with Plum Creek (Note 4) — 278,887 — Stock options exercised 5,970 2,571 1,592 Issued for restricted stock units 605 840 365 Issued for performance shares 120 219 242 Preference shares converted to common — 23,345 — Repurchased — (67,817 ) (16,190 ) Outstanding at end of year 755,223 748,528 510,483 |
Changes in amounts included in our cumulative other comprehensive income (loss) by component | Changes in amounts included in our cumulative other comprehensive income (loss) by component are: DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS Foreign currency translation adjustments Actuarial losses Prior service costs Actuarial losses Prior service credits Unrealized gains on available-for-sale securities Total Beginning balance as of January 1, 2016 $ 207 $ (1,372 ) $ (11 ) $ (77 ) $ 35 $ 6 $ (1,212 ) Other comprehensive income (loss) before reclassifications 25 (590 ) — 5 — 1 (559 ) Income taxes — 208 — (1 ) — — 207 Net other comprehensive income (loss) before reclassifications 25 (382 ) — 4 — 1 (352 ) Amounts reclassified from cumulative other comprehensive income (loss) (1) — 156 4 9 (7 ) — 162 Income taxes — (53 ) (2 ) (3 ) 1 — (57 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 103 2 6 (6 ) — 105 Total other comprehensive income (loss) 25 (279 ) 2 10 (6 ) 1 (247 ) Beginning balance as of January 1, 2017 $ 232 $ (1,651 ) $ (9 ) $ (67 ) $ 29 $ 7 $ (1,459 ) Other comprehensive income (loss) before reclassifications 32 (356 ) (3 ) 19 — 2 (306 ) Income taxes — 76 1 (5 ) — — 72 Net other comprehensive income (loss) before reclassifications 32 (280 ) (2 ) 14 — 2 (234 ) Amounts reclassified from cumulative other comprehensive income (loss) (1) — 195 4 8 (8 ) — 199 Income taxes — (66 ) (1 ) (3 ) 2 — (68 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 129 3 5 (6 ) — 131 Total other comprehensive income (loss) 32 (151 ) 1 19 (6 ) 2 (103 ) Ending balance as of December 31, 2017 $ 264 $ (1,802 ) $ (8 ) $ (48 ) $ 23 $ 9 $ (1,562 ) (1) Actuarial losses and prior service credits (costs) are included in the computation of net periodic benefit costs (credits). See Note: 9 Pension and Other Postretirement Benefit Plans . |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Schedule of Restricted Stock Units Activity | Activity The following table shows our restricted stock unit activity for 2017 . RESTRICTED STOCK UNITS (IN THOUSANDS) WEIGHTED AVERAGE GRANT-DATE FAIR VALUE Nonvested at December 31, 2016 1,583 $ 26.49 Granted 739 32.83 Vested (670) 27.23 Forfeited (137) 27.43 Nonvested at December 31, 2017 (1) 1,515 $ 29.12 (1) As of December 31, 2017, there were approximately 203 thousand restricted stock units that had met the requisite service period and will be released as identified in the grant terms. |
Weighted Average Assumptions Used in Estimating the Value of Performance Share Units | Weighted Average Assumptions Used in Estimating the Value of Performance Share Units 2017 2016 2015 Performance period 1/1/2017 – 12/31/2019 1/1/2016 – 12/31/2018 1/1/2015 – 12/31/2017 Expected dividends 3.74 % 3.92% - 5.37% 3.26 % Risk-free rate 0.68% - 1.55% 0.45% - 0.97% 0.05% - 1.07% Volatility 22.71% - 24.07% 21.87% - 28.09% 16.33% - 20.89% Weighted average grant-date fair value $ 37.93 $ 22.58 $ 34.75 Act |
Schedule of Performance Share Units Activity | Activity The following table shows our performance share unit activity for 2017 . GRANTS (IN THOUSANDS) WEIGHTED AVERAGE GRANT-DATE FAIR VALUE Nonvested at December 31, 2016 761 $ 25.23 Granted at target 346 37.93 Vested (130 ) 29.98 Forfeited (12 ) 30.93 Nonvested at December 31, 2017 (1) 965 $ 30.87 (1) As of December 31, 2017, there were approximately 41 thousand performance share units that had met the requisite service period and will be released as identified in the grant terms. |
Weighted Average Assumptions Used in Estimating Value of Stock Options Granted | Weighted Average Assumptions Used in Estimating Value of Stock Options Granted 2016 2015 Expected volatility 25.43 % 25.92 % Expected dividends 5.37 % 3.28 % Expected term (in years) 4.95 4.77 Risk-free rate 1.28 % 1.54 % Weighted average grant-date fair value $ 2.73 $ 5.85 |
Schedule of Stock Options Activity | Activity The following table shows our option unit activity for 2017 . OPTIONS (IN THOUSANDS) WEIGHTED AVERAGE EXERCISE PRICE WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) AGGREGATE INTRINSIC VALUE (IN MILLIONS) Outstanding at December 31, 2016 14,712 $ 24.96 Granted — $ — Exercised (5,975) $ 22.71 Forfeited or expired (250) $ 27.75 Outstanding at December 31, 2017 (1) 8,487 $ 26.47 6.06 $ 75 Exercisable at December 31, 2017 5,374 $ 26.45 5.11 $ 133 (1) As of December 31, 2017, there were approximately 727 thousand stock options that had met the requisite service period and will be released as identified in the grant terms. |
Weighted Average Assumptions Used to Re-measure Value of Stock Appreciation Rights at Year-End | Weighted Average Assumptions Used to Re-measure Value of Stock Appreciation Rights at Year-End 2016 2015 Expected volatility 24.12 % 22.10 % Expected dividends 4.04 % 4.20 % Expected term (in years) 2.20 1.94 Risk-free rate 1.36 % 0.99 % Weighted average fair value $ 7.84 $ 6.96 |
Schedule of Stock Appreciation Rights Activity | Activity The following table shows our stock appreciation rights activity for 2017 . RIGHTS (IN THOUSANDS) WEIGHTED AVERAGE EXERCISE PRICE AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) AGGREGATE INTRINSIC VALUE (IN MILLIONS) Outstanding at December 31, 2016 386 $ 23.82 Granted — $ — Exercised (102 ) $ 24.08 Forfeited or expired (12 ) $ 30.39 Outstanding at December 31, 2017 272 $ 23.42 5.23 $ 3 Exercisable at December 31, 2017 168 $ 21.54 2.29 $ 2 |
CHARGES FOR INTEGRATION AND R48
CHARGES FOR INTEGRATION AND RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Items Included in Our Charges for Integration and Restructuring, Closures, and Asset Impairments | Items Included in Our Charges for Integration and Restructuring, Closures and Asset Impairments DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Integration and restructuring charges related to our merger with Plum Creek: Termination benefits $ 11 $ 54 $ — Acceleration of share-based compensation related to qualifying terminations (Note 16) — 21 — Acceleration of pension benefits related to qualifying terminations (Note 9) — 5 — Professional services 16 52 14 Other integration and restructuring costs 7 14 — Total integration and restructuring charges related to our merger with Plum Creek 34 146 14 Charges related to closures and other restructuring activities: Termination benefits 3 4 4 Other closures and restructuring costs 3 4 6 Total charges related to closures and other restructuring activities 6 8 10 Impairment of long-lived assets 154 16 15 Total charges for integration and restructuring, closures and asset impairments $ 194 $ 170 $ 39 |
Changes in Accrued Severance Related to Restructuring | Changes in accrued severance related to restructuring during 2017 were as follows: DOLLAR AMOUNTS IN MILLIONS Accrued severance as of December 31, 2016 $ 26 Charges 14 Payments (21 ) Accrued severance as of December 31, 2017 $ 19 |
OTHER OPERATING COSTS (INCOME49
OTHER OPERATING COSTS (INCOME), NET (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Various Income and Expense Items Included in Other Operating Costs (Income), Net | Various Income and Expense Items Included in Other Operating Costs (Income), Net DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Gain on disposition of nonstrategic assets (1) $ (16 ) $ (60 ) $ (12 ) Foreign exchange losses (gains), net (2) (1 ) (6 ) 47 Litigation expense, net 20 24 23 Gain on sale of timberlands (3) (99 ) — — Environmental remediation insurance recoveries (42 ) — — Other, net 10 (11 ) (17 ) Total other operating costs (income), net $ (128 ) $ (53 ) $ 41 (1) Gain on disposition of nonstrategic assets in 2016 included a $36 million pretax gain recognized in first quarter 2016 on the sale of our Federal Way, Washington headquarters campus. (2) Foreign exchange gains and losses result from changes in exchange rates primarily related to our U.S. dollar denominated debt that is held by our Canadian subsidiary. (3) Gain on sale of 100,000 acres sold to Twin Creeks during Q4 2017. Refer to Note 8: Related Parties for further information. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Domestic and Foreign Earnings from Continuing Operations Before Income Taxes | Domestic and Foreign Earnings from Continuing Operations Before Income Taxes DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Domestic earnings $ 643 $ 353 $ 326 Foreign earnings 73 151 27 Total earnings before income taxes $ 716 $ 504 $ 353 |
Provision (Benefit) for Income Taxes from Continuing Operations | Provision (Benefit) for Income Taxes from Continuing Operations DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Current: Federal $ 10 $ 1 $ 7 State — 1 (2 ) Foreign 82 11 (5 ) Total current 92 13 — Deferred: Federal 61 37 (69 ) State (18 ) (3 ) (3 ) Foreign (1 ) 42 14 Total deferred 42 76 (58 ) Total income tax provision (benefit) $ 134 $ 89 $ (58 ) |
Effective Income Tax Rate Applicable to Continuing Operations | Effective Income Tax Rate Applicable to Continuing Operations DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 U.S. federal statutory income tax $ 250 $ 177 $ 123 State income taxes, net of federal tax benefit (2 ) (3 ) (5 ) REIT income not subject to federal income tax (198 ) (99 ) (158 ) REIT benefit from change to tax law — — (13 ) Tax affect of U.S. corporate rate change 74 — — Foreign taxes 54 (4 ) 4 Provision for unrecognized tax benefits (2 ) — (7 ) Repatriation of Canadian earnings (22 ) 24 — Other, net (20 ) (6 ) (2 ) Total income tax provision (benefit) $ 134 $ 89 $ (58 ) Effective income tax rate 18.8 % 17.6 % (16.4 )% |
Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) Related to Continuing Operations | Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) Related to Continuing Operations DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Net noncurrent deferred tax asset $ 268 $ 293 Net noncurrent deferred tax liability — — Net deferred tax asset (liability) $ 268 $ 293 |
Items Included in Our Deferred Income Tax Assets (Liabilities) | Items Included in Our Deferred Income Tax Assets (Liabilities) DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Postretirement benefits $ 50 $ 76 Pension 306 395 State tax credits 56 46 Other reserves 38 14 Net operating loss carryforwards 18 25 Other 152 218 Gross deferred tax assets 620 774 Valuation allowance (63 ) (56 ) Net deferred tax assets 557 718 Property, plant and equipment (154 ) (214 ) Timber installment notes (116 ) (180 ) Other (19 ) (31 ) Deferred tax liabilities (289 ) (425 ) Net deferred tax asset (liability) $ 268 $ 293 |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Balance at beginning of year $ 6 $ 6 Lapse of statute (2 ) — Balance at end of year $ 4 $ 6 |
GEOGRAPHIC AREAS (Tables)
GEOGRAPHIC AREAS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Sales by Geographic Area | Sales by Geographic Area DOLLAR AMOUNTS IN MILLIONS 2017 2016 2015 Sales to unaffiliated customers: U.S. $ 6,168 $ 5,451 $ 4,362 Canada 472 341 307 Japan 352 369 363 China 107 108 99 Other foreign countries 97 96 115 Total $ 7,196 $ 6,365 $ 5,246 Export sales from the U.S.: Japan $ 295 $ 314 $ 309 China 102 103 97 Other foreign countries 148 98 91 Total $ 545 $ 515 $ 497 |
Long-Lived Assets by Geographic Area | Long-Lived Assets by Geographic Area DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2017 DECEMBER 31, 2016 (1) DECEMBER 31, 2015 (1) U.S. $ 14,922 $ 15,700 $ 8,260 Canada 223 206 460 Other foreign countries — 527 654 Total $ 15,145 $ 16,433 $ 9,374 (1) Includes assets of discontinued operations. |
SELECTED QUARTERLY FINANCIAL 52
SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited) (Table) | 12 Months Ended |
Dec. 31, 2017 | |
Key Quarterly Financial Data for the Last Two Years | Key Quarterly Financial Data for the Last Two Years DOLLAR AMOUNTS IN MILLIONS EXCEPT PER-SHARE FIGURES FIRST QUARTER SECOND QUARTER THIRD QUARTER (1) FOURTH QUARTER (1) FULL YEAR 2017: Net sales $ 1,693 $ 1,808 $ 1,872 $ 1,823 $ 7,196 Operating income from continuing operations 293 157 205 476 1,131 Earnings from continuing operations before income taxes 181 58 103 374 716 Net earnings 157 24 130 271 582 Net earnings attributable to Weyerhaeuser common shareholders 157 24 130 271 582 Basic net earnings per share attributable to Weyerhaeuser common shareholders 0.21 0.03 0.17 0.36 0.77 Diluted net earnings per share attributable to Weyerhaeuser common shareholders 0.21 0.03 0.17 0.36 0.77 Dividends paid per share 0.31 0.31 0.31 0.32 1.25 Market prices - high/low $34.37 - $29.88 $35.50 - $32.28 $34.46 - $30.95 $36.92 - $33.92 $36.92 - $29.88 2016: Net sales $ 1,405 $ 1,655 $ 1,709 $ 1,596 $ 6,365 Operating income from continuing operations 139 248 261 174 822 Earnings from continuing operations before income taxes 72 161 184 87 504 Net earnings 81 168 227 551 1,027 Net earnings attributable to Weyerhaeuser common shareholders 70 157 227 551 1,005 Basic net earnings per share attributable to Weyerhaeuser common shareholders 0.11 0.21 0.30 0.74 1.40 Diluted net earnings per share attributable to Weyerhaeuser common shareholders 0.11 0.21 0.30 0.73 1.39 Dividends paid per share 0.31 0.31 0.31 0.31 1.24 Market prices - high/low $31.38 - $22.06 $32.56 - $26.55 $33.17 - $29.52 $33.28 - $28.58 $33.28 - $22.06 (1) Third and fourth quarter 2016 include a gain on our Cellulose Fibers divestitures. Refer to Note 3: Discontinued Operations and Other Divestitures for further information. |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Adjustments related to new accounting pronouncements | $ 19 |
Negative book cash balances | $ 0 |
Canada | Maximum | |
Term of timber lease | 25 years |
Canada | Minimum | |
Term of timber lease | 15 years |
BUSINESS SEGMENTS - Sales and C
BUSINESS SEGMENTS - Sales and Contribution (Charge) to Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Contribution (charge) to earnings from continuing operations | $ 1,109 | $ 1,892 | $ 850 | ||||||||
Net sales | $ 1,823 | $ 1,872 | $ 1,808 | $ 1,693 | $ 1,596 | $ 1,709 | $ 1,655 | $ 1,405 | 7,196 | 6,365 | 5,246 |
Continuing operations | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Intersegment sales | 0 | 0 | 0 | ||||||||
Contribution (charge) to earnings from continuing operations | 1,109 | 935 | 694 | ||||||||
Operating segments | Continuing operations | Timberlands | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales to unaffiliated customers | 1,942 | 1,805 | 1,273 | ||||||||
Intersegment sales | 762 | 840 | 830 | ||||||||
Contribution (charge) to earnings from continuing operations | 532 | 499 | 470 | ||||||||
Operating segments | Continuing operations | RE & ENR | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales to unaffiliated customers | 280 | 226 | 101 | ||||||||
Intersegment sales | 1 | 1 | 0 | ||||||||
Contribution (charge) to earnings from continuing operations | 146 | 55 | 79 | ||||||||
Operating segments | Continuing operations | Wood Products | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales to unaffiliated customers | 4,974 | 4,334 | 3,872 | ||||||||
Intersegment sales | 0 | 68 | 82 | ||||||||
Contribution (charge) to earnings from continuing operations | 569 | 512 | 258 | ||||||||
Intersegment eliminations | Continuing operations | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Intersegment sales | (763) | (909) | (912) | ||||||||
Unallocated Items | Continuing operations | |||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||||||||||
Sales to unaffiliated customers | 0 | 0 | 0 | ||||||||
Contribution (charge) to earnings from continuing operations | $ (138) | $ (131) | $ (113) |
BUSINESS SEGMENTS - Reconciliat
BUSINESS SEGMENTS - Reconciliation of Contribution to Earnings to Net Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Contribution (Charge) to Earnings From Segment to Net Earnings [Line Items] | |||||||||||
Net contribution to earnings | $ 1,109 | $ 1,892 | $ 850 | ||||||||
Interest expense, net of capitalized interest(1) | (393) | (436) | (347) | ||||||||
Income before income taxes(1) | 716 | 1,456 | 503 | ||||||||
Income taxes(1) | (134) | (429) | 3 | ||||||||
Net earnings | $ 271 | $ 130 | $ 24 | $ 157 | $ 551 | $ 227 | $ 168 | $ 81 | 582 | 1,027 | 506 |
Continuing operations | |||||||||||
Reconciliation of Contribution (Charge) to Earnings From Segment to Net Earnings [Line Items] | |||||||||||
Net contribution to earnings | 1,109 | 935 | 694 | ||||||||
Discontinued operations | |||||||||||
Reconciliation of Contribution (Charge) to Earnings From Segment to Net Earnings [Line Items] | |||||||||||
Net contribution to earnings | $ 0 | $ 957 | $ 156 |
BUSINESS SEGMENTS - Total Asset
BUSINESS SEGMENTS - Total Assets (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ 18,059 | $ 19,243 | $ 12,720 |
Operating segments | Timberlands and Real Estate & ENR | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 14,122 | 15,608 | 7,260 |
Operating segments | Wood Products | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | 2,145 | 1,910 | 1,541 |
Unallocated Items | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Assets | $ 1,792 | $ 1,725 | $ 3,919 |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | $ 521 | $ 565 | $ 479 |
Net pension and postretirement cost (credit)(1) | 97 | (13) | 25 |
Charges for integration and restructuring, closures and asset impairments (Note 17) | 194 | 170 | 39 |
Equity earnings (loss) from joint ventures | 1 | 22 | 0 |
Capital expenditures | 419 | 425 | 365 |
Investments in and advances to joint ventures | 31 | 56 | 0 |
Operating segments | Timberlands | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 356 | 366 | 208 |
Net pension and postretirement cost (credit)(1) | 7 | 8 | 9 |
Charges for integration and restructuring, closures and asset impairments (Note 17) | 147 | 0 | 0 |
Equity earnings (loss) from joint ventures | 0 | 0 | 0 |
Capital expenditures | 115 | 116 | 75 |
Investments in and advances to joint ventures | 0 | 0 | 0 |
Operating segments | RE & ENR | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 15 | 13 | 1 |
Net pension and postretirement cost (credit)(1) | 1 | 0 | 0 |
Charges for integration and restructuring, closures and asset impairments (Note 17) | 0 | 15 | 0 |
Equity earnings (loss) from joint ventures | 1 | 2 | 0 |
Capital expenditures | 2 | 1 | 0 |
Investments in and advances to joint ventures | 0 | ||
Operating segments | Wood Products | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 145 | 129 | 106 |
Net pension and postretirement cost (credit)(1) | 23 | 22 | 27 |
Charges for integration and restructuring, closures and asset impairments (Note 17) | 13 | 7 | 10 |
Equity earnings (loss) from joint ventures | 0 | 0 | 0 |
Capital expenditures | 299 | 297 | 287 |
Investments in and advances to joint ventures | 0 | 0 | 0 |
Unallocated Items | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 5 | 4 | 10 |
Net pension and postretirement cost (credit)(1) | 66 | (43) | (11) |
Charges for integration and restructuring, closures and asset impairments (Note 17) | 34 | 148 | 29 |
Equity earnings (loss) from joint ventures | 0 | 20 | 0 |
Capital expenditures | 3 | 11 | 3 |
Investments in and advances to joint ventures | $ 0 | 0 | 0 |
Continuing operations | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | $ 512 | $ 325 |
DISCONTINUED OPERATIONS AND O58
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES - Components of the Net Gain on CF Divestitures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds, net of cash and cash equivalents disposed of | $ (403) | $ (2,486) | $ 0 |
Cellulose Fibers | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds, net of cash and cash equivalents disposed of | (2,486) | ||
Net book value of assets and liabilities disposed of | 1,678 | ||
Transaction costs, net of reimbursement | 19 | ||
Net book value of contributed assets and transaction costs, net of reimbursement | 1,697 | ||
Pretax gain on Cellulose Fibers divestitures | 789 | ||
Income taxes | 243 | ||
Net gain on divestiture | $ 546 | $ 0 |
DISCONTINUED OPERATIONS AND O59
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES - Sales and Net Earnings from Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Total net sales | $ 1,537 | $ 1,860 | |
Costs of products sold | 1,283 | 1,573 | |
Gross margin | 254 | 287 | |
Selling expenses | 12 | 14 | |
General and administrative expenses | 29 | 30 | |
Research and development expenses | 5 | 6 | |
Charges for integration and restructuring, closures and asset impairments(3) | 63 | 2 | |
Other operating income, net | (27) | (26) | |
Operating income | 172 | 261 | |
Equity loss from joint venture | (4) | (105) | |
Interest expense, net of capitalized interest | (5) | (6) | |
Earnings from discontinued operations before income taxes | 163 | 150 | |
Income taxes | (97) | (55) | |
Net earnings from operations | 66 | 95 | |
Net earnings from discontinued operations | $ 0 | 612 | 95 |
Cellulose Fibers | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net gain on divestiture | $ 546 | $ 0 |
DISCONTINUED OPERATIONS AND O60
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES - Cash Flows from Discontinued Operations (Details) - Cellulose Fibers - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Net cash provided by (used in) operating activities | $ 196 | $ 429 |
Net cash provided by (used in) investing activities | $ 2,356 | $ (118) |
DISCONTINUED OPERATIONS AND O61
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from disposition of discontinued operations | $ 403 | $ 2,486 | $ 0 | |
Uruguay Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Assets | 0 | |||
Liabilities | 0 | |||
Cellulose Fibers | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from disposition of discontinued operations | 2,486 | |||
Pretax gain on divestiture | 789 | |||
Proceeds from divestiture used to repay debt | 1,700 | |||
Gain on divestiture | 546 | 0 | ||
Assets | 0 | 0 | ||
Liabilities | 0 | 0 | ||
Pulp | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from disposition of discontinued operations | 2,200 | |||
Liquid Packaging Board | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from disposition of discontinued operations | $ 285 | |||
NORPAC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from disposition of discontinued operations | 42 | |||
NORPAC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Equity method investment, ownership percentage | 50.00% | |||
Amount received from related party transaction | $ 126 | $ 197 |
MERGER WITH PLUM CREEK Unaudite
MERGER WITH PLUM CREEK Unaudited Proforma (Details) - Plum Creek - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Net sales | $ 6,525 | $ 6,664 |
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders | $ 519 | $ 487 |
Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, basic | $ 0.69 | $ 0.61 |
Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, diluted | $ 0.68 | $ 0.61 |
MERGER WITH PLUM CREEK Recogniz
MERGER WITH PLUM CREEK Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Plum Creek - USD ($) $ in Millions | Dec. 31, 2016 | Feb. 19, 2016 |
Business Acquisition [Line Items] | ||
Total assets acquired | $ 10,000 | |
Total liabilities assumed | 3,600 | |
Preliminary allocation | ||
Business Acquisition [Line Items] | ||
Current assets | $ 128 | |
Timber and timberlands | 8,124 | |
Minerals and mineral rights | 312 | |
Property and equipment | 272 | |
Other assets | 163 | |
Total assets acquired | 9,963 | |
Current liabilities | 610 | |
Long-term debt | 2,056 | |
Note payable to Timberland Venture | 837 | |
Other liabilities | 77 | |
Total liabilities assumed | 3,580 | |
Net assets acquired | 6,383 | |
Preliminary allocation | Equity investment in Timberland Venture | ||
Business Acquisition [Line Items] | ||
Equity investments in joint ventures | 876 | |
Preliminary allocation | Equity investment in Real Estate Development Ventures | ||
Business Acquisition [Line Items] | ||
Equity investments in joint ventures | $ 88 | |
Measurement period adjustments | ||
Business Acquisition [Line Items] | ||
Current assets | 10 | |
Timber and timberlands | 2 | |
Minerals and mineral rights | 6 | |
Property and equipment | 5 | |
Other assets | 4 | |
Total assets acquired | (5) | |
Current liabilities | 0 | |
Long-term debt | 0 | |
Note payable to Timberland Venture | 1 | |
Other liabilities | (6) | |
Total liabilities assumed | (5) | |
Net assets acquired | 0 | |
Measurement period adjustments | Equity investment in Timberland Venture | ||
Business Acquisition [Line Items] | ||
Equity investments in joint ventures | (29) | |
Measurement period adjustments | Equity investment in Real Estate Development Ventures | ||
Business Acquisition [Line Items] | ||
Equity investments in joint ventures | (3) | |
Final Allocation | ||
Business Acquisition [Line Items] | ||
Current assets | 138 | |
Timber and timberlands | 8,126 | |
Minerals and mineral rights | 318 | |
Property and equipment | 277 | |
Other assets | 167 | |
Total assets acquired | 9,958 | |
Current liabilities | 610 | |
Long-term debt | 2,056 | |
Note payable to Timberland Venture | 838 | |
Other liabilities | 71 | |
Total liabilities assumed | 3,575 | |
Net assets acquired | 6,383 | |
Final Allocation | Equity investment in Timberland Venture | ||
Business Acquisition [Line Items] | ||
Equity investments in joint ventures | 847 | |
Final Allocation | Equity investment in Real Estate Development Ventures | ||
Business Acquisition [Line Items] | ||
Equity investments in joint ventures | $ 85 |
MERGER WITH PLUM CREEK Addition
MERGER WITH PLUM CREEK Additional Information (Details) - Plum Creek - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Total assets acquired | $ 10,000 | |
Estimated consideration transferred | 6,400 | |
Total liabilities assumed | 3,600 | |
Non-recurring merger-related costs | $ 155 | $ 22 |
NET EARNINGS PER SHARE - Schedu
NET EARNINGS PER SHARE - Schedule of Earnings per Share, Basic and Diluted (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted average number of outstanding shares - basic | 753,085 | 718,560 | 516,371 |
Dilutive potential common shares | 3,581 | 3,841 | 3,247 |
Weighted average number of outstanding common shares - diluted | 756,666 | 722,401 | 519,618 |
Stock options | |||
Dilutive potential common shares | 2,571 | 2,672 | 2,342 |
Restricted stock units | |||
Dilutive potential common shares | 582 | 756 | 381 |
Performance share units | |||
Dilutive potential common shares | 428 | 413 | 524 |
NET EARNINGS PER SHARE - Potent
NET EARNINGS PER SHARE - Potential Shares Not Included in the Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential shares not included in the computation of diluted earnings per share | 1,351 | 1,462 | 5,016 |
Performance share units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential shares not included in the computation of diluted earnings per share | 799 | 384 | 155 |
Preference shares(1) | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Potential shares not included in the computation of diluted earnings per share | 0 | 0 | 25,307 |
NET EARNINGS PER SHARE - Additi
NET EARNINGS PER SHARE - Additional Information (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Basic earnings per share attributable to Weyerhaeuser common shareholders | $ 0.36 | $ 0.17 | $ 0.03 | $ 0.21 | $ 0.74 | $ 0.30 | $ 0.21 | $ 0.11 | $ 0.77 | $ 1.40 | $ 0.89 |
Diluted earnings per share attributable to Weyerhaeuser common shareholders | $ 0.36 | $ 0.17 | $ 0.03 | $ 0.21 | $ 0.73 | $ 0.30 | $ 0.21 | $ 0.11 | $ 0.77 | $ 1.39 | $ 0.89 |
INVENTORIES - Inventories as of
INVENTORIES - Inventories as of the End of Our Last Two Years (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Total | $ 383 | $ 358 |
Logs | ||
Inventory [Line Items] | ||
LIFO inventories | 17 | 18 |
FIFO or moving average cost inventories | 38 | 21 |
Lumber, plywood, panels, and fiberboard | ||
Inventory [Line Items] | ||
LIFO inventories | 66 | 61 |
Lumber, plywood, panels, fiberboard and engineered wood products | ||
Inventory [Line Items] | ||
FIFO or moving average cost inventories | 91 | 73 |
Other products | ||
Inventory [Line Items] | ||
LIFO inventories | 10 | 10 |
FIFO or moving average cost inventories | 77 | 90 |
Materials and supplies | ||
Inventory [Line Items] | ||
FIFO or moving average cost inventories | $ 84 | $ 85 |
INVENTORIES - Additional Inform
INVENTORIES - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Increase in inventory amount if FIFO would have been used | $ 70 | $ 71 |
PROPERTY AND EQUIPMENT - Carryi
PROPERTY AND EQUIPMENT - Carrying Value of Property and Equipment and Estimated Service Lives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 4,956 | $ 4,868 |
Accumulated depreciation and amortization | (3,338) | (3,306) |
Property and equipment, net | 1,618 | 1,562 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 88 | 90 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 867 | 789 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 3,037 | 3,022 |
Roads | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | 782 | 773 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, at cost | $ 182 | $ 194 |
Minimum | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 15 years | |
Minimum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 5 years | |
Minimum | Roads | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 10 years | |
Minimum | Other | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 3 years | |
Maximum | Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 35 years | |
Maximum | Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 25 years | |
Maximum | Roads | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 35 years | |
Maximum | Other | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 10 years |
PROPERTY AND EQUIPMENT - Additi
PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense, excluding discontinued operations | $ 206 | $ 198 | $ 160 |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated service lives | 15 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated service lives | 35 years |
RELATED PARTIES - Schedule of C
RELATED PARTIES - Schedule of Changes in Deposit of Timberlands (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Beginning Balance | $ 426 | ||
Initial cash receipt upon contribution of timberlands to Twin Creeks Venture | 0 | $ 440 | $ 0 |
Ending Balance | 0 | 426 | |
Twin Creeks Venture | |||
Related Party Transaction [Line Items] | |||
Beginning Balance | 426 | 0 | |
Initial cash receipt upon contribution of timberlands to Twin Creeks Venture | 440 | ||
Lease payments to Twin Creeks Venture | (8) | (17) | |
Distributions from Twin Creeks Venture | 2 | 3 | |
Recognition of contributed timberlands | (420) | ||
Ending Balance | $ 0 | $ 426 | $ 0 |
RELATED PARTIES - Additional In
RELATED PARTIES - Additional Information (Details) $ in Millions | Apr. 01, 2016USD ($)a | Dec. 31, 2017USD ($)a | Sep. 30, 2016USD ($) | Aug. 30, 2016 | Dec. 31, 2020 | Dec. 31, 2017USD ($)aRate | Dec. 31, 2016USD ($)Rate | Dec. 31, 2015USD ($) |
Related Party Transaction [Line Items] | ||||||||
Increase (Decrease) in Restricted Cash and Investments | $ (25) | $ (46) | $ 0 | |||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 1 | 14 | 15 | |||||
Net gains on sale of nonstrategic assets | (16) | (73) | (38) | |||||
Proceeds from sale of Southern timberlands | 203 | 0 | 0 | |||||
Proceeds from contribution of timberlands to related party (Note 8) | 0 | 440 | 0 | |||||
Proceeds from redemption of ownership interest in related party | 108 | 0 | 0 | |||||
Interest expense | $ 393 | 431 | 341 | |||||
Real Estate Development Ventures | ||||||||
Related Party Transaction [Line Items] | ||||||||
Expiration of joint venture agreement | 2,020 | |||||||
Timberland Venture | ||||||||
Related Party Transaction [Line Items] | ||||||||
Gain on redemption of debt instrument | $ 6 | |||||||
Twin Creeks Venture | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sale of Timberland acreage | a | 100,000 | 100,000 | ||||||
Net gains on sale of nonstrategic assets | $ (99) | |||||||
Proceeds from sale of Southern timberlands | $ 203 | |||||||
Contributed acres of timberlands to venture | a | 260,000 | |||||||
Agreed-upon value of acres contributed | $ 560 | |||||||
Proceeds from contribution of timberlands to related party (Note 8) | $ 440 | |||||||
Ownership interest | 21.00% | |||||||
Proceeds from redemption of ownership interest in related party | $ 108 | |||||||
Other partner ownership interest | 79.00% | 79.00% | ||||||
Guaranteed annual return | 3.00% | |||||||
Percentage of profit in excess of guaranteed annual return | 75.00% | |||||||
Twin Creeks Venture | Georgia | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sale of Timberland acreage | a | 20,000 | 20,000 | ||||||
Twin Creeks Venture | Mississippi | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sale of Timberland acreage | a | 80,000 | 80,000 | ||||||
Class A Properties | Real Estate Development Ventures | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity method investment, ownership percentage | 3.00% | 3.00% | ||||||
Other partner ownership percentage | 97.00% | 97.00% | ||||||
Class B Properties | Real Estate Development Ventures | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||||
Other partner ownership percentage | 50.00% | 50.00% | ||||||
Preferred interests | Timberland Venture | ||||||||
Related Party Transaction [Line Items] | ||||||||
Ownership percentage | 100.00% | |||||||
Common interests | Timberland Venture | ||||||||
Related Party Transaction [Line Items] | ||||||||
Other partner ownership percentage | 91.00% | |||||||
Ownership percentage | 9.00% | |||||||
Monetization SPEs | ||||||||
Related Party Transaction [Line Items] | ||||||||
SPE long-term notes | $ 511 | $ 511 | $ 511 | |||||
Weighted average interest rate on SPE long-term notes | Rate | 5.60% | 5.60% | ||||||
Monetization SPEs | Long-term notes due 2018 | ||||||||
Related Party Transaction [Line Items] | ||||||||
SPE long-term notes | 209 | $ 209 | ||||||
Debt, Maturity Date | Dec. 31, 2018 | |||||||
Monetization SPEs | Long-term notes due 2019 | ||||||||
Related Party Transaction [Line Items] | ||||||||
SPE long-term notes | 302 | $ 302 | ||||||
Investment Maturity Date | Dec. 31, 2019 | |||||||
Buyer-sponsored SPEs | ||||||||
Related Party Transaction [Line Items] | ||||||||
SPE restricted financial investments | 615 | $ 615 | $ 615 | |||||
Weighted average interest rate on SPE financial investments | Rate | 5.50% | 5.50% | ||||||
Buyer-sponsored SPEs | SPE restricted investment due in 2019 | ||||||||
Related Party Transaction [Line Items] | ||||||||
SPE restricted financial investments | 253 | $ 253 | ||||||
Debt, Maturity Date | Dec. 31, 2019 | |||||||
Buyer-sponsored SPEs | SPE restricted investment due in 2020 | ||||||||
Related Party Transaction [Line Items] | ||||||||
SPE restricted financial investments | 362 | $ 362 | ||||||
Investment Maturity Date | Dec. 31, 2020 | |||||||
SPEs | ||||||||
Related Party Transaction [Line Items] | ||||||||
Interest expense | $ 29 | $ 29 | 29 | |||||
Interest income | 34 | 34 | $ 34 | |||||
Net equity in SPEs | 105 | 105 | ||||||
Net deferred tax liability | $ 116 | $ 116 | ||||||
Twin Creeks Venture | ||||||||
Related Party Transaction [Line Items] | ||||||||
Proceeds from contribution of timberlands to related party (Note 8) | $ 440 |
PENSION AND OTHER POSTRETIREM74
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Funded Status of Our Plans (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Current liabilities | $ (40) | $ (49) | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,514 | 5,351 | $ 5,491 |
Projected benefit obligations | (6,795) | (6,469) | (6,211) |
Noncurrent assets | 45 | 27 | |
Current liabilities | (21) | (28) | |
Noncurrent liabilities | (1,305) | (1,117) | |
Funded status | (1,281) | (1,118) | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | 0 |
Projected benefit obligations | (200) | (225) | $ (240) |
Noncurrent assets | 0 | 0 | |
Current liabilities | (19) | (21) | |
Noncurrent liabilities | (181) | (204) | |
Funded status | $ (200) | $ (225) |
PENSION AND OTHER POSTRETIREM75
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Changes in Fair Value of Plan Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | $ 1 | $ 1 | $ 1 |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at beginning of year (estimated) | 5,351,000,000 | 5,491,000,000 | |
Adjustment for final fair value of plan assets | 18,000,000 | 7,000,000 | |
Actual return on plan assets | 553,000,000 | 27,000,000 | |
Foreign currency translation | 59,000,000 | 29,000,000 | |
Employer contributions and benefit payments | 57,000,000 | 78,000,000 | |
Plan participants’ contributions | 0 | 0 | |
Plan transfers | 3,000,000 | 1,000,000 | |
Plan acquisitions | 0 | 137,000,000 | |
Benefits paid (includes lump sum settlements) | (527,000,000) | (419,000,000) | |
Fair value of plan assets at end of year (estimated) | 5,514,000,000 | 5,351,000,000 | 5,491,000,000 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets at beginning of year (estimated) | 0 | 0 | |
Adjustment for final fair value of plan assets | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Employer contributions and benefit payments | 20,000,000 | 21,000,000 | |
Plan participants’ contributions | 6,000,000 | 7,000,000 | |
Plan transfers | 0 | 0 | |
Plan acquisitions | 0 | 0 | |
Benefits paid (includes lump sum settlements) | (26,000,000) | (28,000,000) | |
Fair value of plan assets at end of year (estimated) | $ 0 | $ 0 | $ 0 |
PENSION AND OTHER POSTRETIREM76
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Changes in Projected Benefit Obligations of Our Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation beginning of year | $ 6,469 | $ 6,211 | |
Service cost | 35 | 48 | $ 57 |
Interest cost | 264 | 277 | 265 |
Plan participants’ contributions | 0 | 0 | |
Actuarial (gains) losses | 489 | 120 | |
Foreign currency translation | 59 | 27 | |
Benefits paid (includes lump sum settlements) | (527) | (419) | |
Plan amendments and other | 3 | 0 | |
Plan transfers | 3 | 1 | |
Plan acquisitions | 0 | 199 | |
Change in control enhanced benefits | 0 | 5 | |
Projected benefit obligation, end of year | 6,795 | 6,469 | 6,211 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation beginning of year | 225 | 240 | |
Service cost | 0 | 0 | 0 |
Interest cost | 8 | 8 | 9 |
Plan participants’ contributions | 6 | 7 | |
Actuarial (gains) losses | (18) | (5) | |
Foreign currency translation | 5 | 3 | |
Benefits paid (includes lump sum settlements) | (26) | (28) | |
Plan amendments and other | 0 | 0 | |
Plan transfers | 0 | 0 | |
Plan acquisitions | 0 | 0 | |
Change in control enhanced benefits | 0 | 0 | |
Projected benefit obligation, end of year | $ 200 | $ 225 | $ 240 |
PENSION AND OTHER POSTRETIREM77
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Assets Within Our U.S. and Canadian Qualified and Registered Pension Plans (Details) - Qualified and Registered Plans [Member] | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | (100.00%) | (100.00%) |
Cash and short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | (10.60%) | (13.70%) |
Common and preferred stock | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | (0.00%) | (0.10%) |
Hedge funds and related investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | (58.80%) | (56.60%) |
Private equity and related investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | (22.20%) | (22.70%) |
Derivative instruments, net | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | (8.70%) | (7.10%) |
Accrued liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | (0.30%) | (0.20%) |
PENSION AND OTHER POSTRETIREM78
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Net Pension Plan Assets, by Fair Value Hiearchy (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 12 | $ 10 | |
Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,502 | 5,341 | |
Fair Value, Inputs, Level 1 | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 10 | |
Fair Value, Inputs, Level 2 | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 557 | 455 | $ 546 |
Fair Value, Inputs, Level 3 | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and short-term investments | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 5 | |
Cash and short-term investments | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 582 | 731 | |
Cash and short-term investments | Fair Value, Inputs, Level 1 | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 5 | |
Cash and short-term investments | Fair Value, Inputs, Level 1 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 580 | 715 | |
Cash and short-term investments | Fair Value, Inputs, Level 2 | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and short-term investments | Fair Value, Inputs, Level 2 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2 | 16 | |
Cash and short-term investments | Fair Value, Inputs, Level 3 | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Cash and short-term investments | Fair Value, Inputs, Level 3 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Common and preferred stock | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 5 | |
Common and preferred stock | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 7 | |
Common and preferred stock | Fair Value, Inputs, Level 1 | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 5 | |
Common and preferred stock | Fair Value, Inputs, Level 1 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1 | 7 | |
Common and preferred stock | Fair Value, Inputs, Level 2 | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Common and preferred stock | Fair Value, Inputs, Level 2 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Common and preferred stock | Fair Value, Inputs, Level 3 | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Common and preferred stock | Fair Value, Inputs, Level 3 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge funds and related investments | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,237 | 3,023 | |
Hedge funds and related investments | Fair Value, Inputs, Level 1 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 59 | 62 | |
Hedge funds and related investments | Fair Value, Inputs, Level 2 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge funds and related investments | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 4 | 3 |
Hedge funds and related investments | Fair Value, Inputs, Level 3 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 4 | |
Private equity and related investments | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,222 | 1,213 | |
Private equity and related investments | Fair Value, Inputs, Level 1 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private equity and related investments | Fair Value, Inputs, Level 2 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private equity and related investments | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 102 | 75 | 52 |
Private equity and related investments | Fair Value, Inputs, Level 3 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 102 | 75 | |
Derivative financial instruments, assets | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 476 | 386 | |
Derivative financial instruments, assets | Fair Value, Inputs, Level 1 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Derivative financial instruments, assets | Fair Value, Inputs, Level 2 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 31 | 10 | |
Derivative financial instruments, assets | Fair Value, Inputs, Level 3 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 445 | 376 | |
Derivative financial instruments, liabilities | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | (8) | |
Derivative financial instruments, liabilities | Fair Value, Inputs, Level 1 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Derivative financial instruments, liabilities | Fair Value, Inputs, Level 2 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | (8) | |
Derivative financial instruments, liabilities | Fair Value, Inputs, Level 3 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investments | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,518 | 5,352 | |
Investments | Fair Value, Inputs, Level 1 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 640 | 784 | |
Investments | Fair Value, Inputs, Level 2 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 33 | 18 | |
Investments | Fair Value, Inputs, Level 3 | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 557 | 455 | |
Accrued liabilities, net | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (16) | (11) | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,514 | 5,351 | $ 5,491 |
Net asset value [Member] | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Net asset value [Member] | Cash and short-term investments | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Net asset value [Member] | Cash and short-term investments | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Net asset value [Member] | Common and preferred stock | Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Net asset value [Member] | Common and preferred stock | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Net asset value [Member] | Hedge funds and related investments | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,168 | 2,957 | |
Net asset value [Member] | Private equity and related investments | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,120 | 1,138 | |
Net asset value [Member] | Derivative financial instruments, assets | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Net asset value [Member] | Derivative financial instruments, liabilities | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Net asset value [Member] | Investments | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 4,288 | $ 4,095 |
PENSION AND OTHER POSTRETIREM79
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Reconciliation of Pension Plan Assets Measured at Level 3 Fair Value (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year (estimated) | $ 455 | $ 546 |
Net realized gains (losses) | (16) | 131 |
Net change in unrealized gains (losses) | 110 | (122) |
Purchases | 14 | 21 |
Sales | 1 | 18 |
Settlements | (13) | (128) |
Transfers into Level 3 | 25 | 25 |
Transfers out of Level 3 | (17) | 0 |
Fair value of plan assets at end of year (estimated) | 557 | 455 |
Hedge funds and related investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year (estimated) | 4 | 3 |
Net realized gains (losses) | (1) | (1) |
Net change in unrealized gains (losses) | 2 | 2 |
Purchases | 0 | 0 |
Sales | 1 | 0 |
Settlements | 0 | 0 |
Transfers into Level 3 | 6 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year (estimated) | 10 | 4 |
Private equity and related investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year (estimated) | 75 | 52 |
Net realized gains (losses) | (30) | (2) |
Net change in unrealized gains (losses) | 41 | (3) |
Purchases | 14 | 21 |
Sales | 0 | 18 |
Settlements | 0 | 0 |
Transfers into Level 3 | 19 | 25 |
Transfers out of Level 3 | (17) | 0 |
Fair value of plan assets at end of year (estimated) | 102 | 75 |
Derivative instruments, net | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year (estimated) | 376 | 491 |
Net realized gains (losses) | 15 | 134 |
Net change in unrealized gains (losses) | 67 | (121) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements | (13) | (128) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Fair value of plan assets at end of year (estimated) | $ 445 | $ 376 |
PENSION AND OTHER POSTRETIREM80
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Fair Value and Aggregate Notional Amount of the Derivative Instruments Held by our Pension Trusts (Details) - Pension - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||
Derivatives, fair value, net | $ 476 | $ 378 |
Derivative, notional amount | 3,357 | 4,731 |
Equity and fixed income index derivatives, net | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Derivatives, fair value, net | 19 | 10 |
Derivative, notional amount | 501 | 405 |
Foreign currency derivatives, net | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Derivatives, fair value, net | 12 | (5) |
Derivative, notional amount | 1,413 | 2,811 |
Total return swaps, net | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Derivatives, fair value, net | 445 | 373 |
Derivative, notional amount | $ 1,443 | $ 1,515 |
PENSION AND OTHER POSTRETIREM81
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Rates We Use in Estimating Our Benefit Obligations (Details) - Pension | 12 Months Ended | |
Dec. 31, 2017Rate | Dec. 31, 2016Rate | |
Defined Benefit Plan Disclosure [Line Items] | ||
Lump sum distribution election | 60.00% | 60.00% |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates, benefit obligation | 3.70% | 4.30% |
Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates, benefit obligation | 3.50% | 3.70% |
Salaried | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 3.25% | 3.50% |
Hourly | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 3.00% | 3.25% |
Minimum | Salaried | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 2.00% | 2.00% |
Minimum | Hourly | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 2.30% | 2.30% |
Maximum | Salaried | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 13.00% | 13.00% |
Maximum | Hourly | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 13.00% | 13.00% |
PENSION AND OTHER POSTRETIREM82
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Rates Used to Estimate Our Net Periodic Benefit Costs (Details) | 12 Months Ended | ||
Dec. 31, 2017Rate | Dec. 31, 2016 | Dec. 31, 2015 | |
Non Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 3.50% | 3.50% | 3.50% |
Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 8.00% | ||
Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 3.70% | 4.00% | |
Pension | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 8.00% | 9.00% | 9.00% |
Pension | Plum Creek | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 7.00% | ||
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 4.30% | 4.50% | 4.10% |
Rate of compensation increase, current year | 2.50% | ||
Rate of compensation increase, thereafter | 3.50% | ||
Pension | U.S. | Qualified and Registered Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Lump sum distributions election(2) | 60.00% | 60.00% | 60.00% |
Pension | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 3.90% | ||
Rate of compensation increase, current year | 2.50% | ||
Rate of compensation increase, thereafter | 3.50% | ||
Pension | Salaried | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 3.50% | 3.50% | |
Pension | Hourly | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 3.00% | ||
Pension | Hourly | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 3.25% | 3.25% | 3.25% |
Minimum | Pension | Salaried | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 2.00% | 2.00% | |
Minimum | Pension | Hourly | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 2.30% | 2.30% | |
Maximum | Pension | Salaried | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 13.00% | 13.00% | |
Maximum | Pension | Hourly | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 13.00% | 13.00% |
PENSION AND OTHER POSTRETIREM83
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Actual Returns on Assets Held by Our Pension Trusts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | $ 1 | $ 1 | $ 1 |
Direct investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | 0.72 | 0.44 | 0.77 |
Derivative instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | $ 0.28 | $ 0.56 | $ 0.23 |
PENSION AND OTHER POSTRETIREM84
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Assumptions We Use in Estimating Health Care Benefit Costs (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate that the cost trend rate gradually declines to | 4.50% | 4.50% |
Year the cost trend rate is reached | 2,037 | 2,037 |
U.S. | Health Reimbursement Account [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted health care cost trend rate assumed for next year | 4.50% | |
U.S. | Pre Medicare [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted health care cost trend rate assumed for next year | 8.90% | |
Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted health care cost trend rate assumed for next year | 4.90% | |
Rate that the cost trend rate gradually declines to | 4.30% | 4.30% |
Year the cost trend rate is reached | 2,028 | 2,028 |
Next year [Member] | U.S. | Health Reimbursement Account [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted health care cost trend rate assumed for next year | 4.50% | 4.50% |
Next year [Member] | U.S. | Pre Medicare [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted health care cost trend rate assumed for next year | 8.40% | 8.90% |
Next year [Member] | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted health care cost trend rate assumed for next year | 5.10% | 4.90% |
PENSION AND OTHER POSTRETIREM85
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Effect of a One Percent Change in Health Care Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Effect on total service and interest cost components on 1 percent increase in health care costs (less than) | $ 1 | |
Effect on total service and interest cost components on 1 percent decrease in health care costs (less than) | $ (1) | |
Effect on accumulated postretirement benefit obligation on 1 percent increase in health care costs | 7 | |
Effect on accumulated postretirement benefit obligation on 1 percent decrease in health care costs | $ (7) |
PENSION AND OTHER POSTRETIREM86
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 35 | $ 48 | $ 57 |
Interest cost | 264 | 277 | 265 |
Expected return on plan assets | (409) | (495) | (476) |
Amortization of actuarial loss | 195 | 156 | 182 |
Amortization of prior service cost (credit) | 4 | 4 | 4 |
Change in control enhanced benefits | 0 | 5 | |
Net periodic benefit cost (credit) | 89 | (5) | 32 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 8 | 8 | 9 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of actuarial loss | 8 | 9 | 10 |
Amortization of prior service cost (credit) | (8) | (7) | (9) |
Change in control enhanced benefits | 0 | 0 | |
Net periodic benefit cost (credit) | 8 | 10 | 10 |
Plum Creek | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Change in control enhanced benefits | 0 | 5 | 0 |
Plum Creek | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Change in control enhanced benefits | 0 | $ 0 | 0 |
Discontinued operations | Cellulose Fibers | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 13 | $ 17 |
PENSION AND OTHER POSTRETIREM87
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Estimated Amortization from Cumulative Other Comprehensive Loss (Details) $ in Millions | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 250 |
Prior service cost (credit) | (5) |
Net effect cost | 245 |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 242 |
Prior service cost (credit) | 3 |
Net effect cost | 245 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 8 |
Prior service cost (credit) | (8) |
Net effect cost | $ 0 |
PENSION AND OTHER POSTRETIREM88
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Estimated Projected Benefit Payments for the Next 10 Years (Details) $ in Millions | Dec. 31, 2017USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Future Benefit Payments in 2018 | $ 369 |
Expected Future Benefit Payments in 2019 | 371 |
Expected Future Benefit Payments in 2020 | 374 |
Expected Future Benefit Payments in 2021 | 374 |
Expected Future Benefit Payments in 2022 | 376 |
Expected Future Benefit Payments in 2023-2027 | 1,902 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Future Benefit Payments in 2018 | 19 |
Expected Future Benefit Payments in 2019 | 18 |
Expected Future Benefit Payments in 2020 | 17 |
Expected Future Benefit Payments in 2021 | 16 |
Expected Future Benefit Payments in 2022 | 15 |
Expected Future Benefit Payments in 2023-2027 | $ 65 |
PENSION AND OTHER POSTRETIREM89
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Feb. 19, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Pension plans with accumulated benefit obligations greater than plan assets, projected benefit obligations | $ 5,900,000,000 | $ 5,700,000,000 | $ 5,900,000,000 | |||
Pension plans with accumulated benefit obligations greater than plan assets, accumulated benefit obligations | 5,900,000,000 | 5,600,000,000 | 5,900,000,000 | |||
Pension plans with accumulated benefit obligations greater than plan assets, fair value of assets | 4,600,000,000 | $ 4,500,000,000 | 4,600,000,000 | |||
Accumulated benefit obligation for all defined benefit pension plans | 6,700,000,000 | 6,400,000,000 | 6,700,000,000 | |||
Employer contributions to defined contribution plans | 21,000,000 | 27,000,000 | $ 21,000,000 | |||
Qualified Pension Plans, Defined Benefit [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Employer contributions and benefit payments | $ 0 | |||||
Defined benefit plan, required contribution | 0 | |||||
Non Qualified Pension Plans Defined Benefit [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Change in control enhanced benefits | $ 1,000,000 | |||||
Employer contributions and benefit payments | 31,000,000 | |||||
Non Registered Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of plan assets | $ 12,000,000 | $ 10,000,000 | 12,000,000 | |||
Expected return on plan assets | 3.50% | 3.50% | 3.50% | |||
Qualified and Registered Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of plan assets | $ 5,502,000,000 | $ 5,341,000,000 | $ 5,502,000,000 | |||
Expected return on plan assets | 8.00% | |||||
Retirement Compensation Arrangement | Non Registered Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Percentage of assets invested into noninterest-bearing refundable tax account | 50.00% | 50.00% | ||||
U.S. | Non Qualified Pension Plans Defined Benefit [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Expected contribution to benefit plans during 2018 | $ 19,000,000 | $ 19,000,000 | ||||
U.S. | Pre Medicare [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted health care cost trend rate assumed for next year | 8.90% | 8.90% | ||||
U.S. | Health Reimbursement Account [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Weighted health care cost trend rate assumed for next year | 4.50% | 4.50% | ||||
Canada | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rates, net periodic benefit cost | 3.70% | 4.00% | ||||
Weighted health care cost trend rate assumed for next year | 4.90% | 4.90% | ||||
Canada | Non Registered Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Employer contributions and benefit payments | $ 2,000,000 | |||||
Expected contribution to benefit plans during 2018 | 4,000,000 | $ 4,000,000 | ||||
Canada | Registered Pension Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Employer contributions and benefit payments | 25,000,000 | |||||
Expected contribution to benefit plans during 2018 | $ 23,000,000 | 23,000,000 | ||||
Investments we are allowed to invest and manage | Non Registered Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Expected return on plan assets | 7.00% | |||||
Fair Value, Inputs, Level 3 | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of plan assets | $ 557,000,000 | $ 455,000,000 | $ 546,000,000 | $ 557,000,000 | ||
Fair value of plan assets, percent | 10.10% | 10.10% | ||||
Fair Value, Inputs, Level 3 | Non Registered Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Fair value of plan assets | $ 0 | 0 | $ 0 | |||
Pension | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Change in control enhanced benefits | 0 | 5,000,000 | ||||
Fair value of plan assets | 5,514,000,000 | 5,351,000,000 | $ 5,491,000,000 | $ 5,514,000,000 | ||
Employer contributions and benefit payments | $ 57,000,000 | $ 78,000,000 | ||||
Pension | Qualified and Registered Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Expected return on plan assets | 8.00% | 9.00% | 9.00% | |||
Pension | U.S. | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rates, benefit obligation | 3.70% | 4.30% | 3.70% | |||
Discount rates, net periodic benefit cost | 4.30% | 4.50% | 4.10% | |||
Pension | U.S. | Qualified and Registered Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Annual rate of return on assets over 33 years | 13.70% | |||||
Annual rate of return on assets over the past 5 years | 8.00% | |||||
Pension | Canada | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rates, benefit obligation | 3.50% | 3.70% | 3.50% | |||
Discount rates, net periodic benefit cost | 3.90% | |||||
Other Postretirement Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Change in control enhanced benefits | $ 0 | $ 0 | ||||
Fair value of plan assets | 0 | 0 | $ 0 | $ 0 | ||
Employer contributions and benefit payments | 20,000,000 | $ 21,000,000 | ||||
Expected contribution to benefit plans during 2018 | $ 19,000,000 | $ 19,000,000 | ||||
Other Postretirement Benefits | U.S. | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rates, benefit obligation | 3.50% | 3.70% | 3.50% | |||
Discount rates, net periodic benefit cost | 3.70% | 4.00% | 3.60% | |||
Other Postretirement Benefits | Canada | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Discount rates, benefit obligation | 3.40% | 3.60% | 3.40% | |||
Discount rates, net periodic benefit cost | 3.60% | 3.90% | 3.80% | |||
Other Postretirement Benefits | Collective Bargaining Arrangement | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Expected contribution to benefit plans during 2018 | $ 7,000,000 | $ 7,000,000 | ||||
Plum Creek | Non Qualified Pension Plans Defined Benefit [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Other noncurrent assets assumed | $ 47,000,000 | |||||
Supplemental pension benefit payments | $ 42,000,000 | |||||
Change in control enhanced benefits | $ 5,000,000 | |||||
Plum Creek | Pension | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Change in control enhanced benefits | 0 | $ 5,000,000 | $ 0 | |||
Plum Creek | Pension | Qualified and Registered Plans [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Expected return on plan assets | 7.00% | |||||
Plum Creek | Other Postretirement Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Change in control enhanced benefits | $ 0 | $ 0 | $ 0 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Wages, salaries and severance pay | $ 150 | $ 178 |
Pension and other postretirement benefits | 40 | 49 |
Vacation pay | 33 | 33 |
Taxes – Social Security and real and personal property | 24 | 20 |
Interest | 111 | 120 |
Customer rebates and volume discounts | 48 | 39 |
Deferred income | 48 | 40 |
Accrued income taxes | 19 | 139 |
Product remediation accrual (Note 18) | 98 | 0 |
Other | 74 | 74 |
Total | $ 645 | $ 692 |
LINES OF CREDIT - Other Letters
LINES OF CREDIT - Other Letters of Credit and Surety Bonds (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||
Letters of credit | $ 37 | $ 38 |
Surety bonds | $ 134 | $ 125 |
LINES OF CREDIT - Additional In
LINES OF CREDIT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Mar. 31, 2017 | |
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 1,500 | |
Line of Credit Facility, Expiration Date | Mar. 31, 2022 | |
Line of credit, amount outstanding | $ 0 | |
Compensating balance requirments for our letters of credit | $ 5 | |
Prior Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 1,000 | |
Line of Credit Facility, Expiration Date | Sep. 30, 2018 |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt by Types and Interest Rates (Includes Current Portion) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Other | $ 1 | $ 2 |
Long-term debt, before unamortized discounts | 6,008 | 6,628 |
Less unamortized discounts | (5) | (5) |
Less unamortized debt expense | (11) | (13) |
Total | 5,992 | 6,610 |
Portion due within one year | $ 62 | 281 |
Debt, maturity date | Mar. 31, 2022 | |
6.95% debentures due 2017 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 0 | 281 |
Debt, interest rate | 6.95% | |
Debt, maturity date | Dec. 31, 2017 | |
7.00% debentures due 2018 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 62 | 62 |
Debt, interest rate | 7.00% | |
Debt, maturity date | Dec. 31, 2018 | |
7.375% notes due 2019 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 500 | 500 |
Debt, interest rate | 7.375% | |
Debt, maturity date | Dec. 31, 2019 | |
Variable rate term loan credit facility matures 2020 | ||
Debt Instrument [Line Items] | ||
Term loan credit facility | $ 0 | 550 |
Debt, interest rate | 0.00% | |
Debt, maturity date | Dec. 31, 2020 | |
9.00% debentures due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 150 | 150 |
Debt, interest rate | 9.00% | |
Debt, maturity date | Dec. 31, 2021 | |
4.70% debentures due 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 597 | 606 |
Debt, interest rate | 4.70% | |
Debt, maturity date | Dec. 31, 2021 | |
7.125% debentures due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 191 | 191 |
Debt, interest rate | 7.125% | |
Debt, maturity date | Dec. 31, 2023 | |
5.207% debentures due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 885 | 889 |
Debt, interest rate | 5.207% | |
Debt, maturity date | Dec. 31, 2023 | |
4.625% notes due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 500 | 500 |
Debt, interest rate | 4.625% | |
Debt, maturity date | Dec. 31, 2023 | |
3.25% debentures due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 324 | 324 |
Debt, interest rate | 3.25% | |
Debt, maturity date | Dec. 31, 2023 | |
8.50% debentures due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 300 | 300 |
Debt, interest rate | 8.50% | |
Debt, maturity date | Dec. 31, 2025 | |
7.95% debentures due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 136 | 136 |
Debt, interest rate | 7.95% | |
Debt, maturity date | Dec. 31, 2025 | |
7.70% debentures due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 150 | 150 |
Debt, interest rate | 7.70% | |
Debt, maturity date | Dec. 31, 2026 | |
7.35% debentures due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 62 | 62 |
Debt, interest rate | 7.35% | |
Debt, maturity date | Dec. 31, 2026 | |
7.85% debentures due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 100 | 100 |
Debt, interest rate | 7.85% | |
Debt, maturity date | Dec. 31, 2026 | |
Variable rate term loan credit facility matures 2026 | ||
Debt Instrument [Line Items] | ||
Term loan credit facility | $ 225 | 0 |
Debt, interest rate | 3.152% | |
Debt, maturity date | Dec. 31, 2026 | |
6.95% debentures due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 300 | 300 |
Debt, interest rate | 6.95% | |
Debt, maturity date | Dec. 31, 2027 | |
7.375% debentures due 2032 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 1,250 | 1,250 |
Debt, interest rate | 7.375% | |
Debt, maturity date | Dec. 31, 2032 | |
6.875% debentures due 2033 | ||
Debt Instrument [Line Items] | ||
Long-term debentures | $ 275 | $ 275 |
Debt, interest rate | 6.875% | |
Debt, maturity date | Dec. 31, 2033 |
LONG-TERM DEBT - Amounts of Lon
LONG-TERM DEBT - Amounts of Long-Term Debt Due Annually for the Next Five Years and the Total Amount Due After 2022 (Details) $ in Millions | Dec. 31, 2017USD ($) |
Long-term debt maturities | |
2,018 | $ 62 |
2,019 | 500 |
2,020 | 0 |
2,021 | 719 |
2,022 | 0 |
Thereafter | $ 4,675 |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 19, 2016 | |
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Expiration Date | Mar. 31, 2022 | |||||
Long-term Debt, Gross | $ 6,008 | $ 6,008 | $ 6,628 | |||
Proceeds from issuance of long-term debt | $ 225 | 225 | 1,698 | $ 0 | ||
Unamortized discounts, capitalized debt expense and fair value adjustments | 36 | 36 | ||||
Variable rate term loan credit facility matures 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Term loan credit facility | $ 0 | $ 0 | 550 | |||
Line of Credit Facility, Expiration Date | Dec. 31, 2020 | |||||
Repayments of debt | 550 | |||||
Interest rate, stated | 0.00% | 0.00% | ||||
Variable rate term loan credit facility matures 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Term loan credit facility | $ 225 | $ 225 | $ 0 | |||
Line of Credit Facility, Expiration Date | Dec. 31, 2026 | |||||
Interest rate, stated | 3.152% | 3.152% | ||||
Plum Creek | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 720 | |||||
Senior Note due 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 569 | $ 569 | ||||
Interest rate, stated | 4.70% | 4.70% | ||||
Senior Note due 2021 [Member] | Plum Creek | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, fair value | $ 614 | |||||
Senior Note due 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 325 | $ 325 | ||||
Interest rate, stated | 3.25% | 3.25% | ||||
Senior Note due 2023 [Member] | Plum Creek | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, fair value | 324 | |||||
Installment Note Payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt, Gross | $ 860 | $ 860 | ||||
Interest rate, stated | 5.207% | 5.207% | ||||
Installment Note Payable [Member] | Plum Creek | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, fair value | 893 | |||||
Note Payable to Timberland Venture [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal on note payable due to Timberland Venture | $ 783 | $ 783 | ||||
Annual interest rate on note payable | 7.375% | |||||
Note Payable to Timberland Venture [Member] | Plum Creek | ||||||
Debt Instrument [Line Items] | ||||||
Note payable to Timberland Venture, fair value | $ 838 | |||||
Term Loan due August 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | 600 | |||||
Term loan, maximum borrowing capacity | 600 | $ 600 | ||||
Term Loan due September 2017 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | 1,100 | |||||
Term loan, maximum borrowing capacity | $ 1,900 | $ 1,900 | ||||
Variable rate term loan credit facility matures 2020 | Variable rate term loan credit facility matures 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | 225 | |||||
Cash and Cash Equivalents | Variable rate term loan credit facility matures 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 325 |
FAIR VALUE OF FINANCIAL INSTR96
FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated fair values and carrying values of our long-term debt (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 5,992 | $ 6,610 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 7,048 | 7,475 |
Fixed rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 5,768 | 6,061 |
Fixed rate | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | 6,823 | 6,925 |
Variable rate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 224 | 549 |
Variable rate | Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 225 | $ 550 |
LEGAL PROCEEDINGS, COMMITMENT97
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Changes in the Reserve for Environmental Remediation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Environmental Exit Cost [Line Items] | |
Reserve balance as of December 31, 2016 | $ 34 |
Reserve charges and adjustments, net | 29 |
Payments | (15) |
Reserve balance as of December 31, 2017 | $ 48 |
Total active sites as of December 31, 2017 | 37 |
LEGAL PROCEEDINGS, COMMITMENT98
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Changes in the Reserve for Asset Retirement Obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | |
Reserve balance as of December 31, 2016(1) | $ 29 |
Reserve charges and adjustments, net | 12 |
Payments | (11) |
Other adjustments(2) | 2 |
Reserve balance as of December 31, 2017 | $ 32 |
LEGAL PROCEEDINGS, COMMITMENT99
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Future Commitments on Operating Leases (Details) $ in Millions | Dec. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
Operating lease commitment due 2018 | $ 40 |
Operating lease commitment due 2019 | 35 |
Operating lease commitment due 2020 | 32 |
Operating lease commitment due 2021 | 29 |
Operating lease commitment due 2022 | 27 |
Operating lease commitment due Thereafter | $ 161 |
LEGAL PROCEEDINGS, COMMITMEN100
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |||
Remediation costs for all identified sites may exceed reserves | $ 150 | ||
Charges for product remediation | (290) | $ 0 | $ 0 |
Rent expense | 39 | $ 37 | $ 24 |
Timberlands lease | |||
Loss Contingencies [Line Items] | |||
Guaranteed future payments on lease | $ 12 |
SHAREHOLDERS' INTEREST - Reconc
SHAREHOLDERS' INTEREST - Reconciliation of Our Common Share Activity (Details) - shares | Jul. 01, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | ||||
Outstanding at beginning of year | 748,528,131 | 510,483,000 | 524,474,000 | |
Preference shares converted to common shares | 23,200,000 | 0 | 23,345,000 | 0 |
Repurchased | 0 | (67,817,000) | (16,190,000) | |
Outstanding at end of year | 755,222,727 | 748,528,131 | 510,483,000 | |
Stock options | ||||
Class of Stock [Line Items] | ||||
Shares issued for share-based compensation | 5,970,000 | 2,571,000 | 1,592,000 | |
Restricted stock units | ||||
Class of Stock [Line Items] | ||||
Shares issued for share-based compensation | 605,000 | 840,000 | 365,000 | |
Performance share units | ||||
Class of Stock [Line Items] | ||||
Shares issued for share-based compensation | 120,000 | 219,000 | 242,000 | |
Plum Creek | ||||
Class of Stock [Line Items] | ||||
Issuance from merger with Plum Creek (Note 4) | 0 | 278,887,000 | 0 |
SHAREHOLDERS' INTEREST - Change
SHAREHOLDERS' INTEREST - Changes in amounts included in our cumulative other comprehensive income (loss) by component (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning balance | $ (1,459) | $ (1,212) |
Other comprehensive income (loss) before reclassifications | (306) | (559) |
Income taxes | 72 | 207 |
Net other comprehensive income (loss) before reclassifications | (234) | (352) |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 199 | 162 |
Income taxes | (68) | (57) |
Net amounts reclassified from cumulative other comprehensive income (loss) | 131 | 105 |
Total other comprehensive income (loss) | (103) | (247) |
Ending balance | (1,562) | (1,459) |
Foreign currency translation adjustments | ||
Beginning balance | 232 | 207 |
Other comprehensive income (loss) before reclassifications | 32 | 25 |
Income taxes | 0 | 0 |
Net other comprehensive income (loss) before reclassifications | 32 | 25 |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 0 | 0 |
Income taxes | 0 | 0 |
Net amounts reclassified from cumulative other comprehensive income (loss) | 0 | 0 |
Total other comprehensive income (loss) | 32 | 25 |
Ending balance | 264 | 232 |
Unrealized gains on available-for-sale securities | ||
Beginning balance | 7 | 6 |
Other comprehensive income (loss) before reclassifications | 2 | 1 |
Income taxes | 0 | 0 |
Net other comprehensive income (loss) before reclassifications | 2 | 1 |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 0 | 0 |
Income taxes | 0 | 0 |
Net amounts reclassified from cumulative other comprehensive income (loss) | 0 | 0 |
Total other comprehensive income (loss) | 2 | 1 |
Ending balance | 9 | 7 |
Pension | Actuarial losses | ||
Beginning balance | (1,651) | (1,372) |
Other comprehensive income (loss) before reclassifications | (356) | (590) |
Income taxes | 76 | 208 |
Net other comprehensive income (loss) before reclassifications | (280) | (382) |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 195 | 156 |
Income taxes | (66) | (53) |
Net amounts reclassified from cumulative other comprehensive income (loss) | 129 | 103 |
Total other comprehensive income (loss) | (151) | (279) |
Ending balance | (1,802) | (1,651) |
Pension | Prior service credits (costs) | ||
Beginning balance | (9) | (11) |
Other comprehensive income (loss) before reclassifications | (3) | 0 |
Income taxes | 1 | 0 |
Net other comprehensive income (loss) before reclassifications | (2) | 0 |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 4 | 4 |
Income taxes | (1) | (2) |
Net amounts reclassified from cumulative other comprehensive income (loss) | 3 | 2 |
Total other comprehensive income (loss) | 1 | 2 |
Ending balance | (8) | (9) |
Other Postretirement Benefits | Actuarial losses | ||
Beginning balance | (67) | (77) |
Other comprehensive income (loss) before reclassifications | 19 | 5 |
Income taxes | (5) | (1) |
Net other comprehensive income (loss) before reclassifications | 14 | 4 |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 8 | 9 |
Income taxes | (3) | (3) |
Net amounts reclassified from cumulative other comprehensive income (loss) | 5 | 6 |
Total other comprehensive income (loss) | 19 | 10 |
Ending balance | (48) | (67) |
Other Postretirement Benefits | Prior service credits (costs) | ||
Beginning balance | 29 | 35 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Income taxes | 0 | 0 |
Net other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | (8) | (7) |
Income taxes | 2 | 1 |
Net amounts reclassified from cumulative other comprehensive income (loss) | (6) | (6) |
Total other comprehensive income (loss) | (6) | (6) |
Ending balance | $ 23 | $ 29 |
SHAREHOLDERS' INTEREST - Additi
SHAREHOLDERS' INTEREST - Additional Information (Details) $ / shares in Units, $ in Millions | Jul. 01, 2016shares | Jun. 24, 2013USD ($)$ / sharesRateshares | Jun. 28, 2016$ / shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)shares | Jun. 30, 2017 | Nov. 08, 2015USD ($) | Aug. 27, 2015USD ($) | Aug. 13, 2014USD ($) |
Class of Stock [Line Items] | |||||||||||
Preference shares conversion ratio | 1.6929 | 1.5283 | |||||||||
Shares issued upon conversion of stock | 23,200,000 | 0 | 23,345,000 | 0 | |||||||
Volume weighted average price per share | $ / shares | $ 29.54 | ||||||||||
Stock repurchase program, shares repurchased | 0 | 67,817,000 | 16,190,000 | ||||||||
Common shares, outstanding | 755,222,727 | 748,528,131 | 510,483,000 | 524,474,000 | |||||||
Stock repurchase program 2014 (2014 Program) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock repurchase program, authorized repurchase amount | $ | $ 700 | ||||||||||
Stock repurchase program, shares repurchased | 15,471,962 | 6,062,993 | |||||||||
Stock repurchase program, value repurchased | $ | $ 497 | $ 203 | |||||||||
Stock repurchase program August 2015 (2015 Program) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock repurchase program, authorized repurchase amount | $ | $ 500 | ||||||||||
Stock repurchase program, shares repurchased | 717,464 | ||||||||||
Stock repurchase program, value repurchased | $ | $ 22 | ||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ | $ 478 | ||||||||||
Stock repurchase program November 2015 (2016 Program) | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock repurchase program, authorized repurchase amount | $ | $ 2,500 | ||||||||||
Stock repurchase program, shares repurchased | 67,816,810 | ||||||||||
Stock repurchase program, value repurchased | $ | $ 2,000 | ||||||||||
Stock repurchase program, remaining authorized repurchase amount | $ | $ 500 | ||||||||||
Unsettled share repurchases | |||||||||||
Class of Stock [Line Items] | |||||||||||
Stock repurchase program, shares repurchased | 0 | 0 | |||||||||
Preferred shares | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred shares, outstanding | 0 | 0 | |||||||||
Preferred shares, authorized | 7,000,000 | ||||||||||
Preferred shares, par value | $ / shares | $ 1 | ||||||||||
6.375 percent Mandatory Convertible Preference Shares, Series A | |||||||||||
Class of Stock [Line Items] | |||||||||||
Preferred shares, outstanding | 13,700,000 | 13,800,000 | |||||||||
Preferred shares, par value | $ / shares | $ 1 | $ 1 | |||||||||
New issuance | 13,800,000 | ||||||||||
Preference shares, liquidation | $ / shares | $ 50 | $ 50 | |||||||||
Net proceeds from issuance of preference shares | $ | $ 669 | ||||||||||
Preferred shares, dividend rate | Rate | 6.375% |
SHARE-BASED COMPENSATION - Sche
SHARE-BASED COMPENSATION - Schedule of Restricted Stock Units Activity (Details) - Restricted stock units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Units | |||
Balance, beginning of year | 1,583 | ||
Granted | 739 | ||
Vested | (670) | ||
Forfeited | (137) | ||
Nonvested performance share units that have met the requisite service period and will be released as identified in the grant terms | 203 | ||
Balance, end of year | 1,515 | 1,583 | |
Weighted Average Grant Date Fair Value | |||
Balance, beginning of year | $ 26.49 | ||
Granted | 32.83 | $ 30.25 | $ 35.41 |
Vested | 27.23 | ||
Forfeited | 27.43 | ||
Balance, end of year | $ 29.12 | $ 26.49 |
SHARE-BASED COMPENSATION - Weig
SHARE-BASED COMPENSATION - Weighted Average Assumptions Used in Estimating the Value of Performance Share Units (Details) - Performance share units - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 1/1/2017 – 12/31/2019 | 1/1/2016 – 12/31/2018 | 1/1/2015 – 12/31/2017 |
Expected dividends | 3.74% | 3.26% | |
Risk-free rate minimum | 0.68% | 0.45% | 0.05% |
Risk-free rate maximum | 1.55% | 0.97% | 1.07% |
Volatility minimum | 22.71% | 21.87% | 16.33% |
Volatility maximum | 24.07% | 28.09% | 20.89% |
Weighted average grant-date fair value | $ 37.93 | $ 22.58 | $ 34.75 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividends | 3.92% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividends | 5.37% |
SHARE-BASED COMPENSATION - S106
SHARE-BASED COMPENSATION - Schedule of Performance Share Units Activity (Details) - Performance share units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Stock Units | |||
Balance, beginning of year | 761 | ||
Granted | 346 | ||
Vested | (130) | ||
Forfeited | (12) | ||
Balance, end of year | 965 | 761 | |
Nonvested performance share units that have met the requisite service period and will be released as identified in the grant terms | 41 | ||
Weighted Average Grant Date Fair Value | |||
Balance, beginning of year | $ 25.23 | ||
Granted | 37.93 | $ 22.58 | $ 34.75 |
Vested | 29.98 | ||
Forfeited | 30.93 | ||
Balance, end of year | $ 30.87 | $ 25.23 |
SHARE-BASED COMPENSATION - W107
SHARE-BASED COMPENSATION - Weighted Average Assumptions Used in Estimating Value of Stock Options Granted (Details) - Stock options - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 25.43% | 25.92% |
Expected dividends | 5.37% | 3.28% |
Expected term (in years) | 4 years 11 months 12 days | 4 years 9 months 7 days |
Risk-free rate | 1.28% | 1.54% |
Weighted average grant-date fair value | $ 2.73 | $ 5.85 |
SHARE-BASED COMPENSATION - S108
SHARE-BASED COMPENSATION - Schedule of Stock Options Activity (Details) - Stock options $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Options | |
Balance, beginning of year | 14,712 |
Granted | 0 |
Exercised | (5,975) |
Forfeited or expired | (250) |
Balance, end of year | 8,487 |
Exercisable, end of year | 5,374 |
Number of options outstanding that have met the requisite service period and will be released as identifed in the grant terms | 727 |
Weighted Average Exercise Price | |
Balance, beginning of year | $ / shares | $ 24.96 |
Granted(1) | $ / shares | 0 |
Exercised | $ / shares | 22.71 |
Forfeited or expired | $ / shares | 27.75 |
Balance, end of year | $ / shares | 26.47 |
Exercisable, end of year | $ / shares | $ 26.45 |
Weighted Average Remaining Contractual Term | |
Balance, end of year | 6 years 22 days |
Exercisable, end of year | 5 years 1 month 10 days |
Aggregate Intrinsic Value | |
Balance, end of year | $ | $ 75 |
Exercisable, end of year | $ | $ 133 |
SHARE-BASED COMPENSATION - W109
SHARE-BASED COMPENSATION - Weighted Average Assumptions Used to Re-measure the Value of Stock Appreciation Rights at Year-End (Details) - Stock appreciation rights - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 24.12% | 22.10% |
Expected dividends | 4.04% | 4.20% |
Expected term (in years) | 2 years 2 months 12 days | 1 year 11 months 9 days |
Risk-free rate | 1.36% | 0.99% |
Weighted average fair value | $ 7.84 | $ 6.96 |
SHARE-BASED COMPENSATION - S110
SHARE-BASED COMPENSATION - Schedule of Stock Appreciation Rights Activity (Details) - Stock appreciation rights $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Rights | |
Balance, beginning of year | shares | 386 |
Granted | shares | 0 |
Exercised | shares | (102) |
Forfeited or expired | shares | (12) |
Balance, end of year | shares | 272 |
Exercisable, end of year | shares | 168 |
Weighted Average Exercise Price | |
Balance, beginning of year | $ / shares | $ 23.82 |
Granted | $ / shares | 0 |
Exercised | $ / shares | 24.08 |
Forfeited or expired | $ / shares | 30.39 |
Balance, end of year | $ / shares | 23.42 |
Exercisable, end of year | $ / shares | $ 21.54 |
Average Remaining Contractual Term | |
Balance, end of year | 5 years 2 months 23 days |
Exercisable, end of year | 2 years 3 months 15 days |
Aggregate Intrinsic Value | |
Balance, end of year | $ | $ 3 |
Exercisable, end of year | $ | $ 2 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 19, 2016 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 6 | $ 12 | $ 8 | |
Share-based compensation expense | $ 40 | $ 60 | $ 31 | |
Number of shares available for future grants under the Plan | 21,092,207 | |||
Increase in common share if all share-based awards were exercised or vested | 32,000,000 | |||
Unrecognized share-based compensation cost for non-vested equity-classified share-based compensation arrangements | $ 38 | |||
Unrecognized share-based compensation costs for non-vested equity-classified share-based compensation arrangements, weighted average period for recognition | 2 years | |||
Number of common shares to be issued for directors who elected common share payments subsequent to year-end | 615,604 | |||
Number of stock-equivalent units outstanding in deferred compensation accounts | 803,850 | 1,004,448 | 1,003,053 | |
Stock options and stock appreciation rights | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of shares of shares an individual may receive in one year | 2,000,000 | |||
Restricted stock, restricted stock units, performance shares, performance share units, or other equity grants | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of shares of shares an individual may receive in one year | 1,000,000 | |||
Value of awards a participant may be granted in a 12 month period | $ 10 | |||
Stock options | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Total intrinsic value of stock options exercised | 68 | $ 18 | $ 13 | |
Total grant-date fair value of stock options vested | $ 5 | $ 14 | $ 14 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Restricted stock units | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Weighted average grant-date fair value | $ 32.83 | $ 30.25 | $ 35.41 | |
Total grant-date fair value vested | $ 18 | $ 36 | $ 14 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Performance share units | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Weighted average grant-date fair value | $ 37.93 | $ 22.58 | $ 34.75 | |
Total grant-date fair value vested | $ 4 | $ 8 | $ 9 | |
Stock appreciation rights | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Total liabilities paid for stock appreciation rights | 1 | 1 | 1 | |
Discontinued operations | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | 2 | 2 | ||
Share-based compensation expense | 6 | 6 | ||
Plum Creek | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Acceleration of share-based compensation | $ 0 | $ 21 | $ 0 | |
Plum Creek | Stock options | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of replacement equity awards issued | 1,953,128 | |||
Value of replacement stock option awards issued | $ 5 | |||
Plum Creek | Restricted stock units | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of replacement equity awards issued | 1,248,006 | |||
Replacement RSUs with accelerated vesting | 705,394 | |||
Acceleration of share-based compensation | $ 15 | |||
Plum Creek | Value management awards | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Number of replacement equity awards issued | 289,910 | |||
Acceleration of share-based compensation | $ 6 |
CHARGES FOR INTEGRATION AND 112
CHARGES FOR INTEGRATION AND RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS - Items Included in Our Charges for Integration and Restructuring, Closures and Asset Impairments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Charges for integration and restructuring, closures and asset impairments | |||
Termination benefits | $ 14 | ||
Impairment of long-lived assets | 154 | $ 16 | $ 15 |
Total charges for integration and restructuring, closures and asset impairments | 194 | 170 | 39 |
Plum Creek | |||
Charges for integration and restructuring, closures and asset impairments | |||
Termination benefits | 11 | 54 | 0 |
Acceleration of share-based compensation related to qualifying terminations (Note 16) | 0 | 21 | 0 |
Acceleration of pension benefits related to qualifying terminations (Note 9) | 0 | 5 | 0 |
Professional services | 16 | 52 | 14 |
Other integration and restructuring costs | 7 | 14 | 0 |
Total charges for integration and restructuring, closures and asset impairments | 34 | 146 | 14 |
Other Closures and Restructuring | |||
Charges for integration and restructuring, closures and asset impairments | |||
Termination benefits | 3 | 4 | 4 |
Other closures and restructuring costs | 3 | 4 | 6 |
Total charges related to closures and other restructuring activities | $ 6 | $ 8 | $ 10 |
CHARGES FOR INTEGRATION AND 113
CHARGES FOR INTEGRATION AND RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS - Changes in Accrued Severance Related to Restructuring (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Accrued severance as of December 31, 2016 | $ 26 |
Charges | 14 |
Payments | (21) |
Accrued severance as of December 31, 2017 | $ 19 |
CHARGES FOR INTEGRATION AND 114
CHARGES FOR INTEGRATION AND RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Asset Impairment Charges | $ 154 | $ 37 | $ 15 | ||
Proceeds from disposition of discontinued and other operations (Note 3) | 403 | 2,486 | 0 | ||
Net gains on sale of nonstrategic assets | $ (16) | (73) | (38) | ||
RE & ENR | Operating segments | Fair Value, Inputs, Level 3 | |||||
Asset Impairment Charges | $ 15 | ||||
Uruguayan Operations | |||||
Asset Impairment Charges | $ 147 | ||||
Proceeds from disposition of discontinued and other operations (Note 3) | $ 403 | ||||
Nonstrategic assets | Unallocated Items | |||||
Net gains on sale of nonstrategic assets | 0 | ||||
Nonstrategic assets | Unallocated Items | Fair Value, Inputs, Level 3 | |||||
Asset Impairment Charges | $ 13 | ||||
Nonstrategic assets | Wood Products | Operating segments | |||||
Asset Impairment Charges | $ 6 |
OTHER OPERATING COSTS (INCOM115
OTHER OPERATING COSTS (INCOME), NET - Various Income and Expense Items Included in Other Operating Costs (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain on disposition of nonstrategic assets (1) | $ (36) | $ (16) | $ (60) | $ (12) |
Foreign exchange losses (gains), net (2) | (1) | (6) | 47 | |
Litigation expense, net | 20 | 24 | 23 | |
Gain on sale of timberlands (3) | (99) | 0 | 0 | |
Environmental remediation insurance recoveries | (42) | 0 | 0 | |
Other, net expense | 10 | |||
Other, net (income) | (11) | (17) | ||
Total other operating costs (income), net | $ (128) | $ (53) | $ 41 |
INCOME TAXES - Domestic and For
INCOME TAXES - Domestic and Foreign Earnings from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Domestic earnings | $ 643 | $ 353 | $ 326 | ||||||||
Foreign earnings | 73 | 151 | 27 | ||||||||
Total earnings before income taxes | $ 374 | $ 103 | $ 58 | $ 181 | $ 87 | $ 184 | $ 161 | $ 72 | $ 716 | $ 504 | $ 353 |
INCOME TAXES - Provision (Benef
INCOME TAXES - Provision (Benefit) for Income Taxes from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 10 | $ 1 | $ 7 |
State | 0 | 1 | (2) |
Foreign | 82 | 11 | (5) |
Total | 92 | 13 | 0 |
Deferred: | |||
Federal | 61 | 37 | (69) |
State | (18) | (3) | (3) |
Foreign | (1) | 42 | 14 |
Total | 42 | 76 | (58) |
Total income tax provision (benefit) | $ 134 | $ 89 | $ (58) |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Applicable to Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. federal statutory income tax | $ 250 | $ 177 | $ 123 |
State income taxes, net of federal tax benefit | (2) | (3) | (5) |
REIT income not subject to federal income tax | (198) | (99) | (158) |
REIT benefit from change to tax law | 0 | 0 | (13) |
Tax affect of U.S. corporate rate change | 74 | 0 | 0 |
Foreign taxes | 54 | (4) | 4 |
Provision for unrecognized tax benefits | (2) | 0 | (7) |
Repatriation of Canadian earnings | (22) | 24 | 0 |
Other, net | (20) | (6) | (2) |
Total income tax provision (benefit) | $ 134 | $ 89 | $ (58) |
Effective income tax rate | 18.80% | 17.60% | (16.40%) |
INCOME TAXES - Balance Sheet Cl
INCOME TAXES - Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) Related to Continuing Operations (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Net noncurrent deferred tax asset | $ 268 | $ 293 |
Net noncurrent deferred tax liability | 0 | 0 |
Net deferred tax asset (liability) | $ 268 | $ 293 |
INCOME TAXES - Items Included i
INCOME TAXES - Items Included in Our Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Postretirement benefits | $ 50 | $ 76 |
Pension | 306 | 395 |
State tax credits | 56 | 46 |
Other reserves | 38 | 14 |
Net operating loss carryforwards | 18 | 25 |
Other | 152 | 218 |
Gross deferred tax assets | 620 | 774 |
Valuation allowance | (63) | (56) |
Net deferred tax assets | 557 | 718 |
Property, plant and equipment | (154) | (214) |
Timber installment notes | (116) | (180) |
Other | (19) | (31) |
Deferred tax liabilities | (289) | (425) |
Net deferred tax asset (liability) | $ 268 | $ 293 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | ||
Balance at beginning of year | $ 6 | $ 6 |
Lapse of statute | (2) | 0 |
Balance at end of year | $ 4 | $ 6 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | ||
Valuation allowance | $ (63) | $ (56) | ||
Unrecognized tax benefits | 4 | 6 | $ 6 | |
Unrecognized tax benefits, net | 2 | 5 | ||
Unrecognized tax benefits, interest | 1 | |||
Credits and loss carryovers | 2 | 2 | ||
Unrecognized tax benefits that would affect our effective tax rate | 2 | 5 | ||
Estimated decrease in unrecognized tax benefit due to the lapse of application statutes of limitation | 1 | |||
Gain from potential tax adjustment | 600 | |||
Built-in gains tax liability from potential tax adjustment | 100 | |||
Tax affect of U.S. corporate rate change | 74 | $ 0 | $ 0 | |
Estimated Litigation Liability | $ 0 | |||
Maximum | ||||
Percentage of gain distributed in common stock from potential tax adjustment | 80.00% | |||
Foreign Tax Authority [Member] | ||||
Net operating loss carryforwards | $ 0 | |||
Foreign undistributed earnings | 0 | |||
Federal, state and foreign | ||||
Net operating loss carryforwards | 1,000 | |||
U.S. REIT | ||||
Net operating loss carryforwards | $ 684 | |||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2027 | |||
Credit carryforwards | $ 6 | |||
U.S. REIT | Minimum | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2030 | |||
U.S. REIT | Maximum | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2036 | |||
State and Local Jurisdiction [Member] | ||||
Net operating loss carryforwards | $ 349 | |||
Credit carryforwards | $ 70 | |||
State and Local Jurisdiction [Member] | Minimum | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2018 | |||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2018 | |||
State and Local Jurisdiction [Member] | Maximum | ||||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2037 | |||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2031 | |||
With expiration | State and Local Jurisdiction [Member] | ||||
Credit carryforwards | $ 22 | |||
Without expiration | State and Local Jurisdiction [Member] | ||||
Credit carryforwards | $ 48 |
GEOGRAPHIC AREAS - Sales by Geo
GEOGRAPHIC AREAS - Sales by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 1,823 | $ 1,872 | $ 1,808 | $ 1,693 | $ 1,596 | $ 1,709 | $ 1,655 | $ 1,405 | $ 7,196 | $ 6,365 | $ 5,246 |
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 6,168 | 5,451 | 4,362 | ||||||||
Japan | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 352 | 369 | 363 | ||||||||
China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 107 | 108 | 99 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 472 | 341 | 307 | ||||||||
Other foreign countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 97 | 96 | 115 | ||||||||
Export sales from the U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 545 | 515 | 497 | ||||||||
Export sales from the U.S. | Japan | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 295 | 314 | 309 | ||||||||
Export sales from the U.S. | China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 102 | 103 | 97 | ||||||||
Export sales from the U.S. | Other foreign countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 148 | $ 98 | $ 91 |
GEOGRAPHIC AREAS - Long-Lived A
GEOGRAPHIC AREAS - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 15,145 | $ 16,433 | $ 9,374 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 14,922 | 15,700 | 8,260 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 223 | 206 | 460 |
Other foreign countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 0 | $ 527 | $ 654 |
SELECTED QUARTERLY FINANCIAL125
SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited) - Key Quarterly Financial Data for the Last Two Years (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | $ 1,823 | $ 1,872 | $ 1,808 | $ 1,693 | $ 1,596 | $ 1,709 | $ 1,655 | $ 1,405 | $ 7,196 | $ 6,365 | $ 5,246 |
Operating income from continuing operations | 476 | 205 | 157 | 293 | 174 | 261 | 248 | 139 | 1,131 | 822 | 644 |
Earnings from continuing operations before income taxes | 374 | 103 | 58 | 181 | 87 | 184 | 161 | 72 | 716 | 504 | 353 |
Net earnings | 271 | 130 | 24 | 157 | 551 | 227 | 168 | 81 | 582 | 1,027 | 506 |
Net earnings attributable to Weyerhaeuser common shareholders | $ 271 | $ 130 | $ 24 | $ 157 | $ 551 | $ 227 | $ 157 | $ 70 | $ 582 | $ 1,005 | $ 462 |
Basic net earnings per share attributable to Weyerhaeuser common shareholders | $ 0.36 | $ 0.17 | $ 0.03 | $ 0.21 | $ 0.74 | $ 0.30 | $ 0.21 | $ 0.11 | $ 0.77 | $ 1.40 | $ 0.89 |
Diluted net earnings per share attributable to Weyerhaeuser common shareholders | 0.36 | 0.17 | 0.03 | 0.21 | 0.73 | 0.30 | 0.21 | 0.11 | 0.77 | 1.39 | 0.89 |
Dividends paid per share | 0.32 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 0.31 | 1.25 | 1.24 | $ 1.20 |
Maximum | |||||||||||
Market prices - high/low | 36.92 | 34.46 | 35.50 | 34.37 | 33.28 | 33.17 | 32.56 | 31.38 | 36.92 | 33.28 | |
Minimum | |||||||||||
Market prices - high/low | $ 33.92 | $ 30.95 | $ 32.28 | $ 29.88 | $ 28.58 | $ 29.52 | $ 26.55 | $ 22.06 | $ 29.88 | $ 22.06 |
CHARGES FOR PRODUCT REMEDIAT126
CHARGES FOR PRODUCT REMEDIATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Product Liability Contingency [Line Items] | ||||||
Product Remediation Accrual | $ 98,000,000 | $ 98,000,000 | $ 0 | |||
Charges for product remediation (Note 18) | $ 290,000,000 | $ 0 | $ 0 | |||
Wood Products | ||||||
Product Liability Contingency [Line Items] | ||||||
Affected homes | 2,400 | |||||
Product Remediation Accrual, Payments | $ 192,000,000 | |||||
Product Remediation Accrual | 98,000,000 | 98,000,000 | ||||
Charges for product remediation (Note 18) | $ 50,000,000 | $ 190,000,000 | $ 50,000,000 | $ 290,000,000 |