Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 06, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | WEYERHAEUSER COMPANY | ||
Trading Symbol | WY | ||
Entity Central Index Key | 0000106535 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 732,347,000 | ||
Entity Public Float | $ 24.2 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity File Number | 1-4825 | ||
Entity Incorporation, State or Country Code | WA | ||
Entity Tax Identification Number | 91-0470860 | ||
Entity Address, Address Line One | 220 OCCIDENTAL AVENUE SOUTH | ||
Entity Address, City or Town | SEATTLE | ||
Entity Address, State or Province | WA | ||
Entity Address, Postal Zip Code | 98104-7800 | ||
City Area Code | (206) | ||
Local Phone Number | 539-3000 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Shares ($1.25 par value) | ||
Security Exchange Name | NYSE | ||
Documents Incorporated by Reference | Portions of the Notice of the 2023 Annual Meeting of Shareholders and Proxy Statement for the company’s Annual Meeting of Shareholders to be held May 12, 2023 , are incorporated by reference into Part III | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Seattle, Washington | ||
Auditor Firm ID | 185 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales (Note 3) | $ 10,184 | $ 10,201 | $ 7,532 |
Costs of sales | 6,564 | 6,103 | 5,447 |
Gross margin | 3,620 | 4,098 | 2,085 |
Selling expenses | 93 | 95 | 83 |
General and administrative expenses | 398 | 396 | 347 |
Product remediation recoveries (Note 18) | 0 | (37) | (8) |
Gain on sale of timberlands (Note 4) | 0 | (32) | (182) |
Other operating costs, net (Note 19) | 49 | 33 | 135 |
Operating income | 3,080 | 3,643 | 1,710 |
Non-operating pension and other post-employment benefit costs (Note 9) | (254) | (19) | (290) |
Interest income and other | 25 | 5 | 5 |
Interest expense, net of capitalized interest | (270) | (313) | (351) |
Loss on debt extinguishment (Note 12) | (276) | 0 | (92) |
Earnings before income taxes | 2,305 | 3,316 | 982 |
Income taxes (Note 20) | (425) | (709) | (185) |
Net earnings | $ 1,880 | $ 2,607 | $ 797 |
Earnings per share (Note 5): | |||
Basic | $ 2.53 | $ 3.48 | $ 1.07 |
Diluted | $ 2.53 | $ 3.47 | $ 1.07 |
Weighted average shares outstanding (in thousands) (Note 5): | |||
Basic | 741,904 | 749,496 | 746,931 |
Diluted | 742,953 | 750,983 | 747,899 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Comprehensive income: | |||
Net earnings | $ 1,880 | $ 2,607 | $ 797 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (52) | (11) | 18 |
Changes in unamortized actuarial loss, net of tax expense of $95 in 2022, $112 in 2021 and $22 in 2020 | 284 | 351 | 62 |
Changes in unamortized net prior service credit, net of tax (expense) benefit of $(2) in 2022, $1 in 2021 and $0 in 2020 | 0 | 3 | 2 |
Total comprehensive income | $ 2,112 | $ 2,950 | $ 879 |
CONSOLIDATED STATEMENT OF COM_2
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Changes in unamortized actuarial loss, tax expense | $ 95 | $ 112 | $ 22 |
Changes in unamortized net prior service credit, tax (expense) benefit | $ (2) | $ 1 | $ 0 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 1,581 | $ 1,879 |
Receivables, net | 357 | 507 |
Receivables for taxes | 42 | 24 |
Inventories (Note 6) | 550 | 520 |
Prepaid expenses and other current assets | 216 | 205 |
Total current assets | 2,746 | 3,135 |
Property and equipment, net (Note 7) | 2,171 | 2,057 |
Construction in progress | 222 | 175 |
Timber and timberlands at cost, less depletion | 11,604 | 11,510 |
Minerals and mineral rights, less depletion | 214 | 255 |
Deferred tax assets (Note 20) | 8 | 17 |
Other assets | 375 | 503 |
Total assets | 17,340 | 17,652 |
Current liabilities: | ||
Current maturities of long-term debt (Notes 12 and 13) | 982 | 0 |
Accounts payable | 247 | 281 |
Accrued liabilities (Note 10) | 511 | 673 |
Total current liabilities | 1,740 | 954 |
Long-term debt, net (Notes 12 and 13) | 4,071 | 5,099 |
Deferred tax liabilities (Note 20) | 96 | 46 |
Deferred pension and other post-employment benefits (Note 9) | 344 | 440 |
Other liabilities | 340 | 346 |
Total liabilities | 6,591 | 6,885 |
Commitments and contingencies (Note 14) | ||
Weyerhaeuser shareholders’ interest (Notes 15 and 16): | ||
Common shares: $1.25 par value; authorized 1,360 million shares; issued and outstanding: 732,794 thousand shares at December 31, 2022 and 747,301 thousand shares at December 31, 2021 | 916 | 934 |
Other capital | 7,691 | 8,181 |
Retained earnings | 2,389 | 2,131 |
Accumulated other comprehensive loss (Note 15) | (247) | (479) |
Total equity | 10,749 | 10,767 |
Total liabilities and equity | $ 17,340 | $ 17,652 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Common shares, par value | $ 1.25 | $ 1.25 |
Common shares, authorized | 1,360,000,000 | 1,360,000,000 |
Common shares, issued | 732,794,000 | 747,301,000 |
Common shares, outstanding | 732,794,000 | 747,301,000 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operations: | |||
Net earnings | $ 1,880 | $ 2,607 | $ 797 |
Noncash charges (credits) to earnings: | |||
Depreciation, depletion and amortization | 480 | 477 | 472 |
Basis of real estate sold | 84 | 71 | 141 |
Deferred income taxes, net (Note 20) | (30) | 14 | (56) |
Pension and other post-employment benefits (Note 9) | 290 | 61 | 326 |
Share-based compensation expense (Note 16) | 33 | 30 | 30 |
Net gains on sale of timberlands (Note 4) | 0 | (32) | (182) |
Timber casualty loss (Note 19) | 0 | 0 | 80 |
Loss on debt extinguishment (Note 12) | 276 | 0 | 92 |
Change in: | |||
Receivables, net | 149 | (57) | (141) |
Receivables and payables for taxes | (101) | 99 | 65 |
Inventories | (37) | (77) | (25) |
Prepaid expenses and other current assets | (12) | (25) | (4) |
Accounts payable and accrued liabilities | (111) | 113 | (17) |
Pension and post-employment benefit contributions and payments | (24) | (59) | (30) |
Other | (45) | (63) | (19) |
Net cash from operations | 2,832 | 3,159 | 1,529 |
Cash flows from investing activities: | |||
Capital expenditures for property and equipment | (415) | (386) | (225) |
Capital expenditures for timberlands reforestation | (53) | (55) | (56) |
Acquisition of timberlands (Note 4) | (295) | (149) | (425) |
Proceeds from note receivable held by variable interest entities (Note 8) | 0 | 0 | 362 |
Proceeds from sale of timberlands (Note 4) | 0 | 261 | 526 |
Other | 4 | 4 | 3 |
Net cash from investing activities | (759) | (325) | 185 |
Cash flows from financing activities: | |||
Cash dividends on common shares | (1,617) | (884) | (381) |
Net proceeds from issuance of long-term debt (Note 12) | 881 | 0 | 732 |
Payments on long-term debt (Note 12) | (1,203) | (375) | (1,492) |
Proceeds from borrowings on line of credit (Note 11) | 0 | 0 | 550 |
Payments on line of credit (Note 11) | 0 | 0 | (780) |
Proceeds from exercise of stock options | 16 | 51 | 33 |
Repurchases of common shares (Note 15) | (543) | (100) | 0 |
Other | (25) | (22) | (20) |
Net cash from financing activities | (2,491) | (1,330) | (1,358) |
Net change in cash, cash equivalents and restricted cash | (418) | 1,504 | 356 |
Cash, cash equivalents and restricted cash at beginning of year | 1,999 | 495 | 139 |
Cash, cash equivalents and restricted cash at end of year | 1,581 | 1,999 | 495 |
Cash paid (received) during the year for: | |||
Interest, net of amounts capitalized of $4 in 2022, $4 in 2021 and $4 in 2020 | 283 | 315 | 365 |
Income taxes, net of refunds | $ 566 | $ 609 | $ 176 |
CONSOLIDATED STATEMENT OF CAS_2
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Cash Flows [Abstract] | |||
Interest, amount capitalized | $ 6 | $ 4 | $ 4 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common shares: | Other capital: | Retained earnings (accumulated deficit): | Accumulated other comprehensive loss: |
Balance at beginning of year at Dec. 31, 2019 | $ 932 | $ 8,152 | $ (3) | $ (904) | |
Issued for exercise of stock options and vested units | 2 | 31 | |||
Repurchases of common shares (Note 15) | 0 | 0 | |||
Share-based compensation | 30 | ||||
Other transactions, net | (5) | ||||
Net earnings | $ 797 | 797 | |||
Dividends on common shares | (383) | ||||
Other comprehensive income | 82 | ||||
Balance at end of year at Dec. 31, 2020 | $ 8,731 | 934 | 8,208 | 411 | (822) |
Dividends paid per common share | $ 0.51 | ||||
Issued for exercise of stock options and vested units | 3 | 49 | |||
Repurchases of common shares (Note 15) | (3) | (97) | |||
Share-based compensation | 30 | ||||
Other transactions, net | (9) | ||||
Net earnings | $ 2,607 | 2,607 | |||
Dividends on common shares | (887) | ||||
Other comprehensive income | 343 | ||||
Balance at end of year at Dec. 31, 2021 | $ 10,767 | 934 | 8,181 | 2,131 | (479) |
Dividends paid per common share | $ 1.18 | ||||
Issued for exercise of stock options and vested units | 2 | 15 | |||
Repurchases of common shares (Note 15) | (20) | (530) | |||
Share-based compensation | 33 | ||||
Other transactions, net | (8) | ||||
Net earnings | $ 1,880 | 1,880 | |||
Dividends on common shares | (1,622) | ||||
Other comprehensive income | 232 | ||||
Balance at end of year at Dec. 31, 2022 | $ 10,749 | $ 916 | $ 7,691 | $ 2,389 | $ (247) |
Dividends paid per common share | $ 2.17 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: SU MMARY 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 certain key items. OUR ELECTION TO BE TAXED AS A REAL ESTATE INVESTMENT TRUST (REIT) Our company is a REIT and 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 continue to be required to pay federal corporate income taxes on earnings of our Taxable REIT Subsidiaries (TRSs), which include 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, estimates, fair value measurements and foreign currency translation. 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. 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) Accounting Standards Codification (ASC) Topic 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. We are principally engaged in: growing and harvesting timber; maximizing the value of our acreage through the sale of higher and better use (HBU) properties and monetizing the value of surface and subsurface assets through leases and royalties and manufacturing, distributing and selling products made from trees. Our business segments are organized based primarily on products and services. SEGMENT PRODUCTS AND SERVICES Timberlands Logs, timber, recreational leases and other products. Real Estate & ENR Real Estate (sales of timberlands) and ENR (rights to explore for and extract hard minerals, construction materials, natural gas production, wind and solar). Wood Products Structural lumber, oriented strand board, engineered wood products 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. Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations such as environmental remediation and workers compensation. 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; pension plan assets measured at fair value 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 unadjusted quoted prices for identical assets or 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. Foreign Currency Translation 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. 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 prior years to be consistent with our 2022 reporting. This makes balances comparable from year to year. Our reclassifications had no effect on consolidated net earnings or equity. HOW WE ACCOUNT FOR CERTAIN KEY ITEMS This section provides information about how we account for certain key items related to: capital investments, financing our business and our operations. ITEMS RELATED TO CAPITAL INVESTMENTS Key items related to accounting for capital investments pertain to property and equipment, timber and timberlands and impairment of long-lived assets. Property and Equipment We maintain property accounts on an individual asset basis and account for them as follows: 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. Costs associated with logging roads that we intend to utilize for a period longer than one year are capitalized. 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 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 and then expense costs after the first planting as they are incurred or over the period of expected benefit. These expensed costs include: fertilization, vegetation and insect control, pruning and precommercial thinning and property taxes. 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. In addition, the duration of the harvest cycle varies by geographic region and species of timber. Depletion rate calculations do not include estimates for: future silviculture or sustainable forest management costs associated with existing stands; future reforestation costs associated with a stand's final harvest and future volume in connection with the replanting of a stand subsequent to its final harvest. 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 costs of sales. 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 the carrying value of long-lived assets whenever an event or a change in circumstance indicates that the carrying value of the asset or asset group may not be recoverable through future operations. The carrying value is the original cost, less accumulated depreciation and any past impairments recorded. Impaired assets held for use are written down to fair value, while 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 future cash flows from the asset, replacement values of comparable assets and agreed upon sale price or offer price. ITEMS RELATED TO FINANCING OUR BUSINESS Key items related to financing our business include financial instruments, cash equivalents 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 the fair value. These 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 maturities of 90 days or less at the date of purchase. We state cash equivalents at cost, which approximates market. Concentration of Risk We disclose customers that represent a concentration of risk. As of December 31, 2022, and December 31, 2021, 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, pension and other post-employment benefit plans and environmental remediation. Revenue Recognition Refer to Note 3: Revenue Recognition for details on how we account for revenue. Inventories We state inventories at the lower of cost or net realizable value. Cost includes labor, materials and production overhead. LIFO 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 moving average cost or FIFO — the first-in, first-out — methods and those products continue to be recognized under those methods. The moving average cost or FIFO method applies to the balance of our domestic raw material and product inventories, all material and supply inventories and all foreign inventories. Shipping and Handling Costs We classify shipping and handling costs in "Costs of sales" in 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 we have taken on previously filed tax returns are not sustained. 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 net operating loss and tax credit carryforwards. To measure deferred tax assets and liabilities, we: determine when the differences between 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. Pension and Other Post-Employment Benefit Plans We recognize the overfunded or underfunded status of our defined benefit pension and other post-employment 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 post-employment 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 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 the combination of market-related and fair 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 defined benefit pension plans covering approximately half of our employees. Determination of benefits differs for salaried, hourly and union employees as follows: 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. Post-employment benefits other than pensions. We provide certain post-employment healthcare 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 Post-Employment Benefit Plans provides additional information about our post-employment benefit plans. Estimates for pension and other post-employment benefit plans. Estimates we use in accounting for our pension and other post-employment benefit plans include the: fair value of our plan assets; expected long-term rate of return on plan assets and discount rates. At the end of every year, we review our estimates with external advisers and make adjustments as appropriate. We use these estimates to calculate plan asset and liability information as of year-end as well as pension and post-employment expense for the following year. Actual experience that differs from our estimates and subsequent changes in our estimates could have a significant effect on our financial position, results of operations and cash flows. Fair value of plan assets. Plan assets are assets of the pension plan trusts that fund the benefits provided under the pension plans. The fair value of our plan assets estimates the amount that would be received if we were to sell each asset in an orderly transaction between market participants at the reporting date. We estimate the fair value of these assets based on the information available during the year-end reporting process. Refer to Note 9: Pension and Other Post-Employment Benefit Plans for information about the assets held within our pension plans and their related valuation methods. Expected long-term rate of return on plan assets. Our expected long-term rate of return is our estimate of the return that our plan assets will earn over time. This rate is used in determining the net periodic benefit or cost we recognize for our plans. Factors we consider in determining our expected long-term rate of return include: historical returns for a portfolio of assets similar to our expected allocation and expected future performance of similar asset classes. The actual return on plan assets in any given year may vary from our expected long-term rate of return. Actual returns on plan assets affect the funded status of the plans. Differences between actual returns on plan assets and the expected long-term rate of return are reflected as adjustments to accumulated other comprehensive loss, a component of total equity. Discount rates. Discount rates are used to estimate the net present value of our plan obligations. The discount rates are determined at the measurement date by matching current spot rates of high-quality corporate bonds with maturities similar to the timing of expected cash outflows for benefits. 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, 2022 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | NOTE 2: BUSIN ESS 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 Net Contribution (Charge) to Earnings DOLLAR AMOUNTS IN MILLIONS UNALLOCATED REAL ITEMS AND ESTATE WOOD INTERSEGMENT TIMBERLANDS & ENR PRODUCTS ELIMINATIONS CONSOLIDATED Sales to unaffiliated customers 2022 $ 1,858 $ 368 $ 7,958 $ — $ 10,184 2021 $ 1,636 $ 344 $ 8,221 $ — $ 10,201 2020 $ 1,466 $ 276 $ 5,790 $ — $ 7,532 Intersegment sales 2022 $ 561 $ — $ — $ ( 561 ) $ — 2021 $ 535 $ — $ — $ ( 535 ) $ — 2020 $ 471 $ — $ — $ ( 471 ) $ — Net contribution (charge) to earnings 2022 $ 528 $ 218 $ 2,536 $ ( 431 ) $ 2,851 2021 $ 464 $ 210 $ 3,211 $ ( 256 ) $ 3,629 2020 $ 455 $ 86 $ 1,340 $ ( 456 ) $ 1,425 Management evaluates segment performance based on the net contribution (charge) to earnings of the respective segments. An analysis and reconciliation of our business segment information to the consolidated financial statements are included below: Reconciliation of Net Contribution to Earnings to Net Earnings DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Net contribution to earnings $ 2,851 $ 3,629 $ 1,425 Interest expense, net of capitalized interest ( 270 ) ( 313 ) ( 351 ) Loss on debt extinguishment (Note 12) ( 276 ) — ( 92 ) Income before income taxes 2,305 3,316 982 Income taxes ( 425 ) ( 709 ) ( 185 ) Net earnings $ 1,880 $ 2,607 $ 797 Additional Financial Information DOLLAR AMOUNTS IN MILLIONS REAL ESTATE WOOD UNALLOCATED TIMBERLANDS & ENR PRODUCTS ITEMS CONSOLIDATED Depreciation, depletion and amortization 2022 $ 256 $ 17 $ 201 $ 6 $ 480 2021 $ 261 $ 15 $ 196 $ 5 $ 477 2020 $ 257 $ 14 $ 195 $ 6 $ 472 Capital expenditures 2022 $ 113 $ — $ 347 $ 8 $ 468 2021 $ 114 $ — $ 320 $ 7 $ 441 2020 $ 104 $ — $ 176 $ 1 $ 281 Total Assets DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS AND WOOD UNALLOCATED REAL ESTATE & ENR PRODUCTS ITEMS CONSOLIDATED Total assets (1) 2022 $ 12,682 $ 2,933 $ 1,725 $ 17,340 2021 $ 12,737 $ 2,891 $ 2,024 $ 17,652 (1) Assets attributable to the Real Estate & ENR business segment are combined with total assets for the Timberlands segment as we do not produce separate balance sheets internally. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 12 Months Ended |
Dec. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE RECOGNITION | NOT E 3: REVENUE RECOGNITION A majority of our revenue is derived from sales of delivered logs and manufactured wood products. We account for revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers . PERFORMANCE OBLIGATIONS A performance obligation, as defined in ASC Topic 606, is a promise in a contract to transfer a distinct good or service to a customer. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue at the point in time, or over the period, in which the performance obligation is satisfied. Performance obligations associated with delivered log sales are typically satisfied when the logs are delivered to our customers’ mills or delivered to an ocean vessel in the case of export sales. Performance obligations associated with the sale of wood products are typically satisfied when the products are shipped. We have elected, as an accounting policy, to treat shipping and handling that is performed after a customer obtains control of the product as an activity required to fulfill the promise to transfer the good; therefore we will not evaluate this requirement as a separate performance obligation. Customers are generally invoiced shortly after logs are delivered or after wood products are shipped, with payment generally due within a month or less of the invoice date. ASC Topic 606 requires entities to consider significant financing components of contracts with customers, though allows for the use of a practical expedient when the period between satisfaction of a performance obligation and payment receipt is one year or less. Given the nature of our revenue transactions, we have elected to utilize this practical expedient. Performance obligations associated with real estate sales are generally met when placed into escrow and all conditions of closing have been satisfied. CONTRACT ESTIMATES Substantially all of our performance obligations are satisfied as of a point in time. Therefore, there is little judgment in determining when control transfers for our business segments as described above. The transaction price for log sales generally equals the amount billed to our customer for logs delivered during the accounting period. For the limited number of log sales subject to a long-term supply agreement, the transaction price is variable but is known at the time of billing. For wood products sales, the transaction price is generally the amount billed to the customer for the products shipped but may be reduced slightly for estimated cash discounts and rebates. There are no significant contract estimates related to the real estate business. CONTRACT BALANCES In general, customers are billed and a receivable is recorded as we ship and/or deliver wood products and logs. We generally receive payment shortly after products have been received by our customers. Contract asset and liability balances are immaterial. For real estate sales, the company receives the entire consideration in cash at closing. MAJOR PRODUCTS A Reconciliation of Revenue Recognized by our Major Products: DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Net sales to unaffiliated customers: Timberlands segment Delivered logs: West Domestic sales $ 414 $ 308 $ 329 Export grade sales 590 561 391 Subtotal West 1,004 869 720 South 645 589 573 North 56 52 52 Subtotal delivered logs sales 1,705 1,510 1,345 Stumpage and pay-as-cut timber 46 31 19 Recreational and other lease revenue 68 65 63 Other (1) 39 30 39 Net sales attributable to Timberlands segment 1,858 1,636 1,466 Real Estate & ENR segment Real estate 235 246 202 Energy and natural resources 133 98 74 Net sales attributable to Real Estate & ENR segment 368 344 276 Wood Products segment Structural lumber 3,374 3,721 2,602 Oriented strand board 1,578 1,840 1,013 Engineered solid section 862 679 505 Engineered I-joists 573 447 316 Softwood plywood 193 210 171 Medium density fiberboard 192 186 171 Complementary building products 840 790 676 Other (2) 346 348 336 Net sales attributable to Wood Products segment 7,958 8,221 5,790 Total $ 10,184 $ 10,201 $ 7,532 (1) Other Timberlands sales includes sales of seeds and seedlings from our nursery operations as well as wood chips. (2) Other Wood Products sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations. |
TIMBERLAND ACQUISITIONS AND DIV
TIMBERLAND ACQUISITIONS AND DIVESTITURES | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
TIMBERLAND ACQUISITIONS AND DIVESTITURES | N OTE 4: TIMBERLAND ACQUISITIONS AND DIVESTITURES CAROLINAS ACQUISITION On April 14, 2022, we announced an agreement to purchase 81 thousand acres of North and South Carolina timberlands for approximately $ 265 million. We completed the purchase on May 18, 2022 and recorded $ 263 million of timberland assets in “Timber and timberlands at cost, less depletion” and $ 2 million of related assets in “Property and equipment, net” on our Consolidated Balance Sheet . WASHINGTON DIVESTITURE On April 30, 2021, we announced an agreement to sell 145 thousand acres of timberlands in the North Cascades region of Washington. On July 7, 2021, we completed the sale for $ 261 million in cash proceeds, which is net of purchase price adjustments and closing costs. This transaction was structured as a like-kind exchange along with the Alabama acquisition discussed below. As a result of the sale, a gain of $ 32 million was recorded in the Timberlands segment in our Consolidated Statement of Operations . This divestiture 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. ALABAMA ACQUISITION On February 25, 2021, we announced an agreement to purchase 69 thousand acres of southwest Alabama timberlands for approximately $ 149 million. We completed the purchase on April 27, 2021 and recorded $ 148 million of timberland assets in “Timber and timberlands at cost, less depletion” and $ 1 million of related assets in “Property and equipment, net” on our Consolidated Balance Sheet . As discussed above, this transaction was structured as a like-kind exchange. OREGON ACQUISITION AND DIVESTITURE On September 1, 2020, we announced an agreement to sell 149 thousand acres of southern Oregon timberlands and a separate agreement to purchase 85 thousand acres of mid-coastal Oregon timberlands. These transactions were structured as a like-kind exchange. On November 17, 2020, we completed the sale of southern Oregon timberlands for $ 381 million in cash proceeds, which is net of purchase price adjustments and closing costs. As a result of the sale, we recorded a $ 182 million gain in the Timberlands segment in our Consolidated Statement of Operations . This sale 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. On November 19, 2020, we completed the purchase of mid-coastal Oregon timberlands for $ 425 million, which is net of purchase price adjustments. As a result of the purchase, we recorded $ 421 million of timberland assets in “Timber and timberlands at cost, less depletion” and $ 4 million of related assets in “Property and equipment, net” on our Consolidated Balance Sheet . MONTANA DIVESTITURE On December 17, 2019, we announced an agreement to sell 630 thousand acres of Montana timberlands. On March 26, 2020, we completed the sale for $ 145 million in cash proceeds, which is net of purchase price adjustments and closing costs. The Montana divestiture 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. |
NET EARNINGS PER SHARE
NET EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
NET EARNINGS PER SHARE | NOT E 5: NET EARN INGS PER SHARE Our basic and diluted earnings per share for the last three years were: $ 2.53 in 2022, $ 3.48 and $ 3.47 , respectively, in 2021 and $ 1.07 in 2020. 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 and performance share units. Calculation of Weighted Average Number of Outstanding Common Shares – Dilutive SHARES IN THOUSANDS 2022 2021 2020 Weighted average number of outstanding shares — basic 741,904 749,496 746,931 Dilutive potential common shares: Stock options 253 336 313 Restricted stock units 423 764 403 Performance share units 373 387 252 Total effect of outstanding dilutive potential common shares 1,049 1,487 968 Weighted average number of outstanding common shares — dilutive 742,953 750,983 747,899 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 2022 2021 2020 Stock options 610 — 2,107 Performance share units 623 729 781 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 6: INVENTORIES Inventories include raw materials, work-in-process and finished goods as well as materials and supplies, as shown below: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, LIFO inventories: Logs $ 32 $ 26 Lumber, plywood, panels and fiberboard 61 61 Other products 9 17 Moving average cost or FIFO inventories: Logs 56 65 Lumber, plywood, panels, fiberboard and engineered wood products 122 106 Other products 140 131 Materials and supplies 130 114 Total $ 550 $ 520 If we used FIFO for all LIFO inventories, our stated inventories would have been higher by $ 129 million as of December 31, 2022 and $ 103 million as of December 31, 2021. 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, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 7: PROPERTY AND EQUIPMENT , NET 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 DECEMBER 31, DECEMBER 31, RANGE OF LIVES 2022 2021 Property and equipment, at cost: Land N/A $ 83 $ 83 Buildings and improvements 15 - 40 1,166 1,104 Machinery and equipment 5 - 25 3,791 3,640 Roads 10 - 35 743 724 Other 3 - 10 98 98 Total cost 5,881 5,649 Accumulated depreciation and amortization ( 3,710 ) ( 3,592 ) Property and equipment, net $ 2,171 $ 2,057 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. Depreciation and amortization expense for property and equipment was: $ 249 million in 2022, $ 241 million in 2021 and $ 243 million in 2020 . |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 8: RELATED PARTIES This note provides details about our transactions with related parties. For the years presented, our material related parties have consisted of variable interest entities. From 2002 through 2004, we sold certain nonstrategic timberlands. As a result of these sales, buyer-sponsored and monetization variable interest entities, or special purpose entities (SPEs), were formed. We were the primary beneficiary and consolidated the assets and liabilities of the SPEs involved in these transactions. The assets of the buyer-sponsored SPEs were financial investments which consisted of bank guarantees. These bank guarantees were in turn backed by bank notes, which were the liabilities of the monetization SPEs. Interest earned from the financial investments within the buyer-sponsored SPEs was used to pay interest accrued on the corresponding monetization SPE’s note. We had 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 were distinct legal entities: Assets of the SPEs were not available to satisfy our liabilities or obligations. Liabilities of the SPEs were not our liabilities or obligations. During first quarter 2020, we received $ 362 million in proceeds from our final buyer-sponsored SPE at maturity. The weighted average interest rate on our buyer-sponsored SPE was 5.5 percent during 2020. |
PENSION AND OTHER POST-EMPLOYME
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Pension And Other Postretirement Benefit Expense [Abstract] | |
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS | NOTE 9: PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS This note provides details about defined benefit and defined contribution plans we sponsor for our employees. The "Pension and Other Post-Employment Benefit Plans" section of Note 1: Summary of Significant Accounting Policies provides information about how we account for pension and other post-employment 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 plans that qualify under the Internal Revenue Code (qualified plans), as well as plans for select employees that provide additional benefits not qualified under the Internal Revenue Code (nonqualified plans). In Canada, we have plans that are registered under the Income Tax Act and applicable provincial pension acts (registered plans), as well as nonregistered plans for select employees that provide additional benefits that may not be registered under the Income Tax Act or provincial pension acts (nonregistered plans). We also sponsor other post-employment benefit (OPEB) plans in the U.S. and Canada, including retiree medical and life insurance plans. We sponsor various defined contribution plans for our U.S. and Canadian salaried and hourly employees. Our contributions to these plans were $ 31 million, $ 27 million and $ 27 million in 2022, 2021 and 2020, respectively. Actions to Reduce Pension Plan Obligations As part of our continued efforts to reduce pension plan obligations, we transferred approximately $ 420 million of Canadian registered assets and liabilities and approximately $ 790 million of U.S. qualified pension plan assets and liabilities to insurance companies through the purchase of group annuity contracts in December 2022 (2022 Retiree Annuity Purchase) and December 2020 (2020 Retiree Annuity Purchase), respectively. In connection with these transactions, we recorded noncash pretax settlement charges of $ 205 million and $ 253 million during 2022 and 2020, respectively. These settlement charges accelerated the recognition of previously unrecognized losses in "Accumulated Other Comprehensive Loss," that would have been recognized in subsequent periods. Given the timing of the 2022 and 2020 Retiree Annuity Purchases, the plan remeasurements triggered as a result of the transactions were conducted as part of our annual valuation process. 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 our Consolidated Balance Sheet . DOLLAR AMOUNTS IN MILLIONS PENSION OPEB 2022 2021 2022 2021 Projected benefit obligation at beginning of year $ 3,708 $ 3,971 $ 131 $ 149 Service cost 36 42 — — Interest cost 106 98 3 3 Actuarial gains (1) ( 933 ) ( 206 ) ( 26 ) ( 9 ) Plan participants’ contributions — — 2 2 Benefits paid, including lump sum and annuity transfers ( 598 ) ( 199 ) ( 13 ) ( 13 ) Foreign currency translation and other ( 41 ) 2 ( 2 ) ( 1 ) Projected benefit obligation at end of year $ 2,278 $ 3,708 $ 95 $ 131 Fair value of plan assets at beginning of year (estimated) $ 3,418 $ 3,230 $ 13 $ 15 Actual return on plan assets (2) ( 740 ) 336 — — Employer contributions and benefit payments 17 50 7 9 Plan participants’ contributions — — 2 2 Benefits paid, including lump sum and annuity transfers ( 598 ) ( 199 ) ( 13 ) ( 13 ) Other, including foreign currency translation ( 44 ) 1 ( 1 ) — Fair value of plan assets at end of year (estimated) $ 2,053 $ 3,418 $ 8 $ 13 Presentation on our Consolidated Balance Sheet: (3) Noncurrent assets $ 53 $ 52 $ — $ — Current liabilities ( 14 ) ( 16 ) ( 7 ) ( 7 ) Noncurrent liabilities ( 264 ) ( 326 ) ( 80 ) ( 111 ) Funded status (4) $ ( 225 ) $ ( 290 ) $ ( 87 ) $ ( 118 ) Accumulated benefit obligation at end of year $ 2,218 $ 3,601 N/A N/A Actuarial Assumptions Used in Estimating Our Pension and OPEB Benefit Obligations: Discount rate (5) 5.30 - 5.40 % 2.90 - 3.10 % 5.30 - 5.40 % 2.60 - 3.00 % Rate of compensation increase (6) 1.00 - 13.00 % 2.00 - 13.00 % N/A N/A Lump sum or installment distributions election (7) 70.00 % 60.00 % N/A N/A Healthcare cost trend rate: Assumed for next year (8) N/A N/A 4.50 - 5.70 % 4.50 - 6.20 % Ultimate (8) N/A N/A 4.00 - 4.50 % 4.00 - 4.50 % Year when rate will reach ultimate (8) N/A N/A 2037 - 2040 2037 - 2040 (1) Actuarial gains are primarily due to year over year changes in discount rates. (2) Includes adjustments for final fair value of plan assets. (3) Assets and liabilities on our 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 "Accumulated Other Comprehensive Loss", which is a component of total equity on our Consolidated Balance Sheet . The "Accumulated Other Comprehensive Loss" section of Note 15: Shareholders’ Interest details changes in these amounts by component. (4) For pension plans with a projected benefit obligation exceeding plan assets, the projected benefit obligation and fair value of plan assets were $ 2.1 billion and $ 1.8 billion at December 31, 2022, respectively, and $ 2.9 billion and $ 2.5 billion at December 31, 2021, respectively. For pension plans with an accumulated benefit obligation exceeding plan assets, the accumulated benefit obligation and fair value of plan assets were $ 2.0 billion and $ 1.8 billion at December 31, 2022, respectively, and $ 2.8 billion and $ 2.5 billion at December 31, 2021, respectively. (5) For the U.S. defined benefit plans, the discount rate assumption was 5.4 % and 2.9 % for 2022 and 2021, respectively. For the Canadian defined benefit plans, the discount rate assumption was 5.3 % and 3.1 % for 2022 and 2021, respectively. For U.S. OPEB plans, the discount rate assumption was 5.4 % and 2.6 % for 2022 and 2021, respectively. For Canadian OPEB plans, the discount rate assumption was 5.3 % and 3.0 % for 2022 and 2021, respectively. For lump sum distributions (for U.S. qualified salaried and nonqualified plans only), the discount rate assumption was based on the PPA Phased Table: Interest and mortality assumptions as mandated by the Pension Protection Act of 2006. (6) For the U.S. defined benefit plans, the rate of compensation increase assumption for both 2022 and 2021 was between 2.00 % - 13.00 % for salaried participants and was decreasing with participant age. For the Canadian defined benefit plans, the rate of compensation increase assumption for 2022 was 1.00 % - 2.75 % and 2.00 % - 2.75 % for salaried and hourly participants, respectively, and the rate of compensation increase assumption for 2021 was 3.25 % and 3.00 % for salaried and hourly participants, respectively. (7) U.S. qualified salaried and nonqualified plans only. (8) For U.S. OPEB plans, the healthcare cost trend rate assumption for the next year for Pre-Medicare was 5.70 % and 6.20 % for 2022 and 2021, respectively. The healthcare cost trend rate assumption for Health Reimbursement Account (HRA) was 4.50 % for both 2022 and 2021. The ultimate healthcare cost trend rate was 4.50 % and the assumption for the year the ultimate healthcare cost trend rate is reached was 2037 in both 2022 and 2021. For Canadian OPEB plans, the healthcare cost trend rate was 5.20 % for 2022 and 5.30 % for 2021. The ultimate healthcare cost trend rate was 4.00 % and the assumption for the year the ultimate healthcare cost trend rate is reached was 2040 for both 2022 and 2021. 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 In 2018, we began to shift pension plan assets to an allocation that more closely aligns with our pension plan liability profile. Our former investment strategy included investments primarily in hedge funds and private equity funds. These asset classes are now in redemption and run-off mode. However, given the long-term nature of these investments, they will continue to comprise a portion of the plan assets for several years. We expect all investments in redemption to be redeemed at amounts materially consistent with their net asset values (NAV). As these investments are redeemed or liquidated, cash proceeds available for investment will be invested in accordance with our revised investment strategy. The revised investment strategy targets a percentage allocation to growth assets and a percentage allocation to liability hedging assets based on each plan’s funded status. We expect to increase the allocation to liability hedging assets over time as the funded status of the pension plan improves. Growth assets include investments in global equities, hedge funds (which are in redemption) and private equity assets (which are in run-off mode). Liability hedging assets include corporate credit and government issued fixed income securities as well as treasury futures selected to align with the plan liabilities. In December 2021, we entered into an agreement to sell certain private equity and hedge fund investments to a third party for $ 189 million (2021 Secondary Sale) in accordance with our investment strategy. A majority of the assets were transferred to the buyer by year-end 2021. The balance of the assets included in the sale were held at the purchase price as of year-end 2021 and subsequently transferred in 2022 in accordance with the agreement. Assets within our U.S. and Canadian pension trusts were invested as follows: DECEMBER 31, DECEMBER 31, Cash and short-term investments (1) 3.6 % 12.1 % Public equity investments (2) 0.9 — Fixed income investments: (3) Corporate 42.7 40.5 Government 15.5 21.2 Repurchase agreements ( 0.6 ) ( 1.3 ) Hedge funds and related investments (4)(5) 4.2 3.6 Private equity and related investments (5)(6) 34.5 24.9 Derivative instruments, net (7) — 0.1 Accrued liabilities ( 0.8 ) ( 1.1 ) Total 100.0 % 100.0 % (1) Cash and short-term investments are valued at cost, which approximates market. The increased cash holding at year-end 2021 was a result of the 2021 Secondary Sale transaction timing. Refer to “U.S. and Canadian Pension Trusts” above for further information. (2) Public equity investments are valued at exit prices quoted in active markets. (3) Fixed income investments include publicly traded corporate and government issued debt. These bonds have varying maturities, credit quality and sector exposure and are selected to align with the duration of our plan liabilities. Additionally, our fixed income portfolio includes repurchase agreements, which represent short-term borrowings to hedge against interest rate risk. We have an obligation to return the cash related to these borrowings in accordance with the agreements, which are collateralized by our government bonds. Fixed income investments are valued at exit prices quoted in active or non-active markets or based on observable inputs. (4) Hedge funds 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. (5) These investments are primarily valued based on the NAVs 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 NAVs as of the end of the year have not been received, we estimate fair value by adjusting the most recently reported NAVs for market events and cash flows between the interim date and the end of the year. (6) Private equity and related investments include both investments in private equity and investments in mezzanine distressed, co-investments and other structures. Private equity funds generally participate in buyout and venture capital strategies 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. (7) Derivative instruments have historically been comprised of swaps, futures, forwards or options. Consistent with our shift in asset strategy, our positions in derivative instruments have been significantly reduced. At December 31, 2022, only a small amount of futures remain in our portfolio. Derivative instruments are valued based upon valuation statements received from each derivative’s counterparty. 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 non-interest 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, interest rate, credit, currency and liquidity risks. We mitigate these risks to our pension plan asset portfolios through investment in diversified portfolios, inclusion of fixed income investments that align with plan liabilities and investment in assets designed to address both currency and liquidity considerations. In addition, we and our investment advisers perform regular monitoring with ongoing qualitative assessments, quantitative assessments and investment and operational due diligence. Valuation of Our Plan Assets Pension assets are stated at fair value or NAV. 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 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. Refer to Note 1: Summary of Significant Accounting Policies for details on the fair value hierarchy. Investments for which fair value is measured using the NAV per share as a practical expedient are not categorized within the fair value hierarchy. The net pension plan assets, when categorized in accordance with this fair value hierarchy, are as follows. DOLLAR AMOUNTS IN MILLIONS 2022 2021 LEVEL 1 LEVEL 2 LEVEL 3 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Pension trust investments: Cash and short-term investments $ 73 $ — $ — $ 73 $ 412 $ — $ — $ 412 Public equity investments 18 — — 18 — — — — Fixed income investments: Corporate — 874 — 874 — 1,380 — 1,380 Government — 316 — 316 — 721 — 721 Repurchase agreements — ( 12 ) — ( 12 ) — ( 43 ) — ( 43 ) Hedge funds and related investments (1) — — 16 16 — — 10 10 Private equity and related investments (1) — — 34 34 — — 104 104 Derivative instruments (2) — — — — — 5 — 5 Total pension trust investments measured at fair value (1) $ 91 $ 1,178 $ 50 $ 1,319 $ 412 $ 2,063 $ 114 $ 2,589 Canadian nonregistered plan assets: Cash and short-term investments 5 — — 5 5 — — 5 Public equity investments 3 — — 3 6 — — 6 Total Canadian nonregistered plan assets measured at fair value $ 8 $ — $ — $ 8 $ 11 $ — $ — $ 11 Total plan assets measured at fair value (1) $ 1,327 $ 2,600 (1) December 31, 2022 and 2021 exclude $ 740 million and $ 856 million, respectively, of hedge fund and private equity investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient, which are not required to be classified in the fair value hierarchy. Additionally, December 31, 2022 and 2021 exclude $ 14 million and $ 38 million of accrued liabilities, respectively. (2) Derivative instruments include futures contracts. The fair value and aggregate notional value of these contracts were less than $ 1 million and $ 418 million at December 31, 2022, respectively, and $ 5 million and $ 1,126 million at December 31, 2021, respectively. 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 2022 Beginning Unrealized Purchases, Sales, Transfers Ending Balance Loss Settlements, Net In (Out), Net Balance Hedge funds and related investments $ 10 $ — $ ( 1 ) $ 7 $ 16 Private equity and related investments 104 ( 14 ) ( 16 ) ( 40 ) 34 Total $ 114 $ ( 14 ) $ ( 17 ) $ ( 33 ) $ 50 2021 Beginning Unrealized Purchases, Sales, Transfers Ending Balance Gain Settlements, Net In (Out), Net Balance Hedge funds and related investments $ 4 $ — $ ( 1 ) $ 7 $ 10 Private equity and related investments 68 11 ( 4 ) 29 104 Total $ 72 $ 11 $ ( 5 ) $ 36 $ 114 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. ACTIVITY OF PLANS Net Periodic Benefit Cost Our net periodic benefit cost and the assumptions used to estimate it are shown in the following table. DOLLAR AMOUNTS IN MILLIONS PENSION OPEB 2022 2021 2020 2022 2021 2020 Net periodic benefit cost: Service cost $ 36 $ 42 $ 36 $ — $ — $ — Interest cost 106 98 139 3 3 4 Expected return on plan assets ( 160 ) ( 204 ) ( 234 ) — — — Amortization of actuarial loss 93 115 122 5 5 4 Amortization of prior service cost 3 3 3 ( 1 ) ( 1 ) ( 1 ) Settlement charges 205 — 253 — — — Net periodic benefit cost $ 283 $ 54 $ 319 $ 7 $ 7 $ 7 Actuarial Assumptions Used in Discount rate (1) 2.90 - 3.10 % 2.50 % 3.10 - 3.40 % 2.60 - 3.00 % 2.10 - 2.40 % 3.00 % Expected return on assets (2) 5.00 % 6.00 % 6.50 % N/A N/A N/A Rate of compensation increase (3) 2.00 - 13.00 % 2.00 - 13.00 % 2.00 - 13.00 % N/A N/A N/A Lump sum or installment (4) 60.00 % 60.00 % 60.00 % N/A N/A N/A Weighted healthcare cost trend (5) N/A N/A N/A 4.50 - 6.20 % 4.50 - 6.80 % 4.50 - 7.30 % (1) For the U.S. defined benefit plans, the discount rate assumption was 2.90 %, 2.50 % and 3.40 % for 2022, 2021 and 2020, respectively. For the Canadian defined benefit plans, the discount rate assumption was 3.10 %, 2.50 % and 3.10 % for 2022, 2021 and 2020, respectively. For U.S. OPEB plans, the discount rate assumption was 2.60 %, 2.10 % and 3.00 %, for 2022, 2021 and 2020, respectively. For Canadian OPEB plans, the discount rate assumption was 3.00 %, 2.40 % and 3.00 % for 2022, 2021 and 2020, respectively. For lump sum distributions (for U.S. qualified salaried and nonqualified plans only), the discount rate assumption was based on the PPA Phased Table: Interest and mortality assumptions as mandated by the Pension Protection Act of 2006. (2) Determining our expected return requires a high degree of judgment. We consider actual pension fund asset 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. (3) For the U.S. defined benefit plans, the rate of compensation increase assumption for 2022, 2021 and 2020 was between 2.00 % - 13.00 % for salaried participants and was decreasing with participant age. For the Canadian defined benefit plans, the rate of compensation increase assumption for salaried participants was 3.25 % for 2022, 2021 and 2020. The rate of compensation increase assumption for hourly participants was 3.00 % for 2022, 2021 and 2020. (4) U.S. qualified salaried and nonqualified plans only. (5) For OPEB plans during 2022, the assumed weighted healthcare cost trend rate was 6.20 %, 4.50 % and 5.30 % for U.S. Pre-Medicare participants, U.S. HRA participants and Canadian OPEB plans, respectively. Pension Plan Contributions and Benefit Payments 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. During 2022, we made contributions and/or benefit payments of $ 13 million for our U.S. nonqualified pension plans, $ 2 million for our Canadian nonregistered pension plans and $ 2 million for our Canadian registered plans. During 2023, based on estimated year-end asset values and projections of plan liabilities, we expect to make contributions and/or benefit payments of approximately: $ 12 million for our U.S. nonqualified pension plans, $ 2 million for the Canadian non-registered plans and $ 2 million for our Canadian registered plan (required contribution). We do not anticipate contributions being required for our U.S. qualified pension plan for 2023. OPEB Benefit Payments During 2022, we contributed $ 4 million and $ 3 million to our U.S. and Canadian OPEB plans, respectively. In 2023, we expect to make contributions of $ 7 million in total for our U.S. and Canadian OPEB plans, including $ 4 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 OPEB 2023 $ 164 $ 11 2024 $ 145 $ 11 2025 $ 145 $ 10 2026 $ 150 $ 9 2027 $ 152 $ 9 2028-2032 $ 794 $ 36 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. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities Current [Abstract] | |
ACCRUED LIABILITIES | NOTE 10: ACCRUED LIABILITIES Accrued liabilities were comprised of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Compensation and employee benefit costs $ 201 $ 225 Current portion of lease liabilities (Note 17) 22 24 Customer rebates, volume discounts and deferred income 132 164 Interest 69 83 Taxes payable 23 106 Other 64 71 Total $ 511 $ 673 |
LINES OF CREDIT
LINES OF CREDIT | 12 Months Ended |
Dec. 31, 2022 | |
Short Term Debt Other Disclosures [Abstract] | |
LINES OF CREDIT | NOTE 11: LINE OF CREDIT OUR LINE OF CREDIT In January 2020, we refinanced and extended our $ 1.5 billion five-year senior unsecured revolving credit facility, which expires in January 2025 . 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, 2022 and 2021, we ha d no o utstanding borrowings on the revolving credit facility and had our full $ 1.5 billion available. We were in compliance with the revolving credit facility covenants as of December 31, 2022 and December 31, 2021. LETTERS OF CREDIT AND SURETY BONDS The amounts of letters of credit and surety bonds we have entered into as of the end of the last two years are included in the following table: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Letters of credit $ 34 $ 34 Surety bonds $ 121 $ 136 Our compensating balance requirement for our letters of credit was $ 4 million as of December 31, 2022 and December 31, 2021. |
LONG-TERM DEBT, NET
LONG-TERM DEBT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT, NET | NOTE 12: LONG-TERM DEBT, NET This note provides details about: debt issued and extinguished and long-term debt and related maturities. Our long-term debt includes notes, debentures and other borrowings. DEBT ISSUED AND EXTINGUISHED In March 2022, we completed a series of transactions that lowered our weighted average interest rate and extended our weighted average maturity by issuing $ 900 million in notes and using the net proceeds plus cash on hand to close cash tender offers for $ 931 million of principal in higher interest rate notes. We issued $ 450 million of 3.375 percent notes due in March 2033 and $ 450 million of 4.00 percent notes due in March 2052 . The net proceeds after deducting the discount, underwriting fees and issuance costs were $ 444 million and $ 437 million, respectively. The net proceeds were used to retire $ 592 million of our 7.375 percent notes due in March 2032 , $ 161 million of our 8.50 percent notes due in January 2025 , $ 73 million of our 7.125 percent notes due in July 2023 , $ 65 million of our 7.95 percent notes due in March 2025 , and $ 40 million of our 7.85 percent notes due in July 2026 . We paid holders an aggregate $ 1.2 billion in cash reflecting principal, premium to par and tender premium. A net pretax charge of $ 276 million ($ 207 million after-tax) was included in our Consolidated Statement of Operations in first quarter 2022 for premiums to retire $ 931 million of principal plus unamortized debt issuance costs and unamortized debt discounts in connection with the early debt retirement. In October 2021, we repaid our $ 150 million 9.00 percent notes at maturity. In May 2021, we repaid our $ 225 million variable-rate term loan that was scheduled to mature in July 2026 . In December 2020, we redeemed our $ 500 million 4.625 percent notes due in September 2023 , and in September 2020, we redeemed our $ 325 million 3.25 percent notes due in March 2023 . Pretax charges of $ 58 million and $ 23 million were included in our Consolidated Statement of Operations in fourth quarter and third quarter 2020, respectively, for the make-whole premiums, unamortized debt issuance costs and unamortized debt discounts in connection with these early extinguishments. In March 2020, we issued $ 750 million of 4.00 percent notes due in April 2030 . The net proceeds after deducting the discount, underwriting fees and issuance costs were $ 732 million. In May 2020, a portion of the net proceeds was used to redeem our $ 569 million 4.70 percent notes due in March 2021 . A net pretax charge of $ 11 million was included in our Consolidated Statement of Operations in second quarter 2020 for the make-whole premium in connection with the early extinguishment, partially offset by the write-off of an unamortized fair value step-up adjustment. LONG-TERM DEBT AND RELATED 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, 7.125 % debentures due 2023 $ 118 $ 191 5.207 % installment note due 2023 860 860 8.50 % debentures due 2025 139 300 7.95 % debentures due 2025 71 136 7.70 % debentures due 2026 150 150 7.35 % debentures due 2026 62 62 7.85 % debentures due 2026 60 100 6.95 % debentures due 2027 300 300 4.00 % notes due 2029 750 750 4.00 % notes due 2030 750 750 7.375 % debentures due 2032 657 1,250 6.875 % debentures due 2033 275 275 3.375 % debentures due 2033 450 — 4.00 % debentures due 2052 450 — Other 1 1 Total principal long-term debt 5,093 5,125 Add: business combination fair value adjustment 4 8 Less: unamortized discounts ( 37 ) ( 26 ) Less: unamortized debt expense ( 7 ) ( 8 ) Total $ 5,053 $ 5,099 Principal due within one year $ 978 $ — Amounts of Long-Term Debt Due Annually for the Next Five Years and Thereafter DOLLAR AMOUNTS IN MILLIONS (1) 2023 $ 978 2024 $ — 2025 $ 210 2026 $ 272 2027 $ 300 Thereafter $ 3,333 (1) Excludes $ 40 million of unamortized discounts, capitalized debt expense and business combination fair value adjustment. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 13: FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF DEBT The estimated carrying value and fair value of our long-term debt consisted of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Long-term fixed rate debt (including current maturities): Carrying value $ 5,053 $ 5,099 Fair value (level 2) $ 4,918 $ 6,221 To estimate the fair value of fixed rate long-term debt, we used the market approach, which is based on quoted market prices we received for the same types and issues of our debt. We believe that our line of credit has a net carrying value that approximates its fair value within an insignificant difference. The inputs to the valuations of our long-term debt 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, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES | NOTE 14: 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 Consolidated Balance Sheet , Consolidated Statement of Operations or Consolidated Statement of Cash Flows . ENVIRONMENTAL MATTERS Site Remediation Under the federal Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) – 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 (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 operation of the Plainwell, Michigan mill, located within the remediation site, from 1954 to 1970. Several other companies also have been deemed potentially responsible parties as past or present owners or operators of facilities within the site, or as arrangers under CERCLA. We cooperated with 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. During third quarter 2018, implementation of this administrative order was completed. In 2010, 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 a certain area within the site. On March 29, 2018, the U.S. District Court issued an opinion and order assigning the company responsibility for 5 percent of approximately $ 50 million in past costs incurred by the plaintiffs. The remaining 95 percent of this pool of past costs incurred was allocated to the plaintiffs and other defendants. The opinion and order does not establish allocation for future remediation costs, and accordingly, we may incur additional costs in connection with future remediation tasks for other areas of the site. In 2022, the Sixth Circuit Court of Appeals reversed the District Court opinion, finding that Georgia-Pacific’s claims for cost contributions were time barred by the statute of limitations. Georgia-Pacific has filed a petition for writ of certiorari with the U.S. Supreme Court. We have established accruals for estimated remediation costs on the active Superfund sites and other sites for which we are a potentially responsible party. These accruals are recorded in "Accrued liabilities" and "Other liabilities" on our Consolidated Balance Sheet . Changes in the Accrual for Environmental Remediation DOLLAR AMOUNTS IN MILLIONS Accrual balance as of December 31, 2021 $ 63 Charges and adjustments, net 6 Payments ( 5 ) Accrual balance as of December 31, 2022 $ 64 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 accruals by up to $ 134 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. As of December 31, 2022, and December 31, 2021, we had an asset retirement obligation of $ 32 million and $ 33 million, respectively. These obligations are recorded in "Accrued liabilities" and "Other liabilities" on our Consolidated Balance Sheet . COMMITMENTS AND OTHER CONTINGENCIES Product Remediation Contingency Refer to Note 18: Product Remediation Recoveries for further information. |
SHAREHOLDERS' INTEREST
SHAREHOLDERS' INTEREST | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders Equity Note [Abstract] | |
SHAREHOLDERS' INTEREST | NOTE 15: SHAREHOLDERS’ INTEREST This note provides details about: preferred and preference shares, common shares, share repurchase programs and accumulated other comprehensive loss. PREFERRED AND PREFERENCE SHARES We had no preferred shares or preference shares outstanding as of December 31, 2022 or December 31, 2021. We have authorization to issue 7 million preferred shares with a par value of $ 1.00 per share and 40 millio n preference shares with a par value of $ 1.00 per share. 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 settled in common shares, shares are tendered, shares are repurchased or shares are canceled. Reconciliation of Our Common Share Activity SHARES IN THOUSANDS 2022 2021 2020 Outstanding at beginning of year 747,301 747,385 745,300 Stock options exercised 509 1,849 1,441 Issued for vested restricted stock units 676 635 574 Issued for vested performance share units 291 162 70 Repurchased ( 15,983 ) ( 2,730 ) — Outstanding at end of year 732,794 747,301 747,385 SHARE REPURCHASE PROGRAMS On September 22, 2021, we announced that our board of directors approved a new share repurchase program (the 2021 Repurchase Program) under which we are authorized to repurchase up to $ 1 billion of outstanding shares. Concurrently, the board terminated the remaining repurchase authorization under the share repurchase program approved by the board in February 2019 (the 2019 Repurchase Program). We repurchased 15,983,097 common shares for approximately $ 550 million (including transaction fees) under the 2021 Repurchase Program during 2022. As of December 31, 2022, we had remaining authorization of $ 377 million for future share repurchases. During 2021, we repurchased 780,228 common shares for approximately $ 26 million (including transaction fees) under the 2019 Repurchase Program and 1,949,496 common shares for approximately $ 74 million (including transaction fees) under the 2021 Repurchase Program. During 2020, we did not repurchase any shares of common stock. All common stock repurchases under the 2019 Repurchase Program and 2021 Repurchase Program 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 for repurchases that have not yet been settled as of period end. There were 223,548 unsettled shares (approximately $ 7 million) as of December 31, 2022. There were no unsettled shares as of December 31, 2021. ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in amounts included in our accumulated other comprehensive loss by component are: DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Pension (1) Balance at beginning of period $ ( 720 ) $ ( 1,064 ) $ ( 1,128 ) Other comprehensive income (loss) before reclassifications 38 254 ( 223 ) Amounts reclassified from accumulated other comprehensive income (loss) (2)(3) 224 90 287 Total other comprehensive income 262 344 64 Balance at end of period ( 458 ) ( 720 ) ( 1,064 ) Other post-employment benefits (1) Balance at beginning of period ( 2 ) ( 12 ) ( 12 ) Other comprehensive income (loss) before reclassifications 19 6 ( 3 ) Amounts reclassified from accumulated other comprehensive income (loss) (2) 3 4 3 Total other comprehensive income 22 10 — Balance at end of period 20 ( 2 ) ( 12 ) Translation adjustments and other Balance at beginning of period 243 254 236 Translation adjustments ( 52 ) ( 11 ) 18 Total other comprehensive income (loss) ( 52 ) ( 11 ) 18 Balance at end of period 191 243 254 Accumulated other comprehensive loss, end of period $ ( 247 ) $ ( 479 ) $ ( 822 ) (1) Amounts are presented net of tax. (2) Amounts of actuarial loss and prior service (cost) credit are components of net periodic benefit cost (credit). See Note 9: Pension and Other Post-Employment Benefit Plans . (3) Amounts include settlement charges totaling $ 205 million and $ 253 million related to our pension plans for the year ended December 31, 2022 and December 31, 2020, respectively. There were no s ettlement charges related to our pension plans for the year ended December 31, 2021. See Note 9: Pension and Other Post-Employment Benefit Plans for further detail. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share Based Compensation [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 16: SHARE-BASED COMPENSATION This note provides details about: our Long-Term Incentive Compensation Plan (2022 Plan), how we account for share-based awards, tax benefits of share-based awards, types of share-based compensation, unrecognized share-based compensation and deferred compensation stock equivalent units. Share-based compensation expense was: $ 33 million in 2022, $ 30 million in 2021 and $ 30 million in 2020. OUR LONG-TERM INCENTIVE COMPENSATION PLAN Our long-term incentive plan provides for share-based awards that include: restricted stock, restricted stock units (RSUs), performance shares, performance share units (PSUs), stock options and stock appreciation rights (SARs). We may issue future grants of up to 22 million shares under the 2022 Plan. We also have the right to reissue forfeited and expired grants. For stock options and SARs: 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. We have not granted any stock options or SARs since 2016 and the remaining liability related to SARs is immaterial at December 31, 2022. The Compensation Committee of our board of directors 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 26 million shares if all share-based awards were exercised or vested. These include: all options, RSUs and PSUs outstanding at December 31, 2022, and all remaining options, RSUs and PSUs that could be granted under the 2022 Plan. HOW WE ACCOUNT FOR SHARE-BASED AWARDS When accounting for share-based awards we: use a fair-value-based measurement 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 fully 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 recognized in our Consolidated Statement of Operations for the last three years was: $ 5 million in 2022, $ 4 million in 2021 and $ 4 million in 2020. Tax benefits from share-based awards are accrued as stock compensation expense and realized when: restricted shares and RSUs vest, performance shares and PSUs vest, stock options are exercised and SARs are exercised. TYPES OF SHARE-BASED COMPENSATION Our share-based compensation is in the form of: RSUs, PSUs, stock options and SARs. RESTRICTED STOCK UNITS Through the 2022 Plan, we award RSUs — grants that entitle the holder to shares of our stock as the award vests. The Details Our RSUs granted in 2022, 2021 and 2020 generally: vest ratably over four years ; immediately vest in the event of death or disability while employed; continue to vest upon retirement at an age of at least 62, in accordance with the vesting terms of the awards, but a portion of the award is forfeited if retirement occurs before the one-year anniversary of the grant; continue vesting for one year in the event of involuntary termination due to job elimination; immediately vest in the case of a change of control, if the successor company does not assume the award or, if assumed, within two years of the effective date of the change in control the recipient is terminated other than for cause or leaves for good reason (as defined in the award terms and conditions) 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 RSUs is the market price of our stock on the grant date of the awards. We generally record share-based compensation expense for RSUs over the four-year vesting period. Generally, for RSUs 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 RSU activity for 2022: RESTRICTED WEIGHTED STOCK UNITS GRANT-DATE (IN THOUSANDS) FAIR VALUE Nonvested at December 31, 2021 1,756 $ 30.87 Granted 626 $ 42.02 Vested ( 709 ) $ 30.83 Forfeited ( 100 ) $ 37.17 Nonvested at December 31, 2022 (1) 1,573 $ 34.93 (1) As of December 31, 2022, there were approximately 185 thou sand RSUs 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 RSUs was: $ 42.02 in 2022, $ 33.62 in 2021 and $ 30.03 in 2020. The total grant-date fair value of RSUs vested was: $ 22 million in 2022, $ 25 million in 2021 and $ 19 million in 2020. Nonvested RSUs accrue dividends that are paid out when RSUs vest. Any RSUs forfeited will not receive dividends. As RSUs 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 2022 Plan, we award PSUs — grants that entitle the holder to shares of our stock as the award vests. The Details The final number of shares granted in 2022, 2021 and 2020 will vest between a range o f 0 percent to 150 per cent of each grant’s target, depending upon actual company performance compared against an industry peer group. The vesting provisions for PSUs granted in 2022, 2021 and 2020 were generally as follows: awards granted in 2020 and 2021 vest 100 percent on the third anniversary of the grant date, and awards granted in 2022 vest on March 1st following the end of the performance period, in each case as long as the individual remains employed by the company; in the event of death or disability while employed, awards continue to be earned and settled based on actual company performance; upon retirement at an age of at least 62, awards continue to vest in accordance with the vesting terms of the award, but a portion of the award is forfeited if retirement occurs before the one-year anniversary of the grant; awards continue vesting for one year in the event of involuntary termination due to job elimination and the second anniversary of the grant date has passed; in the case of a change of control during the performance period, awards are deemed earned at target performance and (i) vest as of the change of control date if the successor company does not assume the award or (ii) if assumed, vest upon termination of employment if, within two years of the effective date of the change in control, the recipient is involuntarily terminated other than for cause or leaves for good reason (as defined in the award terms and conditions); awards will be forfeited upon termination of employment in all other situations including early retirement prior to age 62 and awards vest at a maximum of 100 percent of target value in the event of negative absolute company total shareholder return (TSR). 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 not be reversed if the market condition is not achieved, provided the requisite service period has been completed. Weighted Average Assumptions Used in Estimating the Value of PSUs 2022 2021 2020 Performance period 2/10/2022 - 12/31/2024 2/11/2021 - 12/31/2023 2/13/2020 - 12/31/2022 Expected dividends 1.72 % 1.99 % 4.50 % Risk-free rate 0.34 % - 1.84 % 0.02 % - 0.20 % 1.45 % - 1.62 % Volatility 26.27 % - 41.01 % 32.87 % - 52.82 % 20.02 % - 22.40 % Weighted average grant-date fair value $ 49.77 $ 38.50 $ 33.16 Activity The following table shows our PSU activity for 2022: GRANTS WEIGHTED (IN THOUSANDS) FAIR VALUE Nonvested at December 31, 2021 1,104 $ 33.56 Granted at target 306 $ 49.77 Vested ( 416 ) $ 29.66 Forfeited ( 52 ) $ 43.69 Performance adjustment 20 $ 29.66 Nonvested at December 31, 2022 (1) 962 $ 39.77 (1) As of December 31, 2022, there were approximately 116 thous and PSUs that had met the requisite service period and will be released as identified in the grant terms. The total grant-date fair value of PSUs vested was: $ 12 million in 2022, $ 8 million in 2021 and $ 3 million in 2020. As PSUs 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. We have not granted stock option awards since 2016. When granted in prior years, stock options had 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, must be exercised within 10 years of the grant date and use a Black-Scholes option valuation model to estimate the fair value of every stock option award on its grant date. Activity The following table shows our stock option activity for 2022: WEIGHTED WEIGHTED REMAINING AGGREGATE AVERAGE CONTRACTUAL INTRINSIC OPTIONS EXERCISE TERM VALUE (IN THOUSANDS) PRICE (IN YEARS) (IN MILLIONS) Outstanding at December 31, 2021 1,917 $ 29.88 Exercised ( 510 ) $ 29.72 Forfeited or expired ( 9 ) $ 35.40 Outstanding at December 31, 2022 1,398 $ 29.91 2.26 $ 4 Exercisable at December 31, 2022 1,398 $ 29.91 2.26 $ 4 The total intrinsic value of stock options exercised was: $ 6 mi llion in 2022, $ 18 million in 2021 and $ 13 million in 2020. UNRECOGNIZED SHARE-BASED COMPENSATION As of December 31, 2022, our unrecognized share-based compensation cost for all types of share-based awards included $ 47 million related to non-vested equity-classified share-based compensation arrangements. These are expected to be recognized over a weighted average period of approximately 2.1 years. DEFERRED COMPENSATION STOCK EQUIVALENT UNITS Certain employees and our board of directors may defer compensation into stock equivalent units. The Details 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 RSUs, 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, except that any directors who are subject to federal or provincial taxation in Canada have the choice to receive a cash amount equal to the fair market value of the company’s common stock on the date of payment. 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 565 thousand. Stock equivalent units are: liability-classified awards and remeasured 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 was: 595 thousand as of December 31, 2022, 712 thousand as of December 31, 2021 and 767 thousand as of December 31, 2020. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASES | NOT E 17: LEASES The majority of our operating leases are related to our office and warehouse space, and the majority of our financing leases are related to vehicles and forklifts. Our leases have remaining lease terms of approximately 1 year to 25 years . Options to renew, extend or terminate a lease are reflected in our lease terms when we believe it is reasonably certain we will exercise that option. When our leases do not provide an implicit or an explicit interest rate, we use our incremental borrowing rate in determining the present value of lease payments. Lease Expense DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Operating lease costs $ 21 $ 20 $ 21 Financing lease costs 7 9 12 Total lease costs $ 28 $ 29 $ 33 Supplemental Cash Flow Information DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 21 $ 19 $ 20 Financing cash flows for financing leases (1) $ 8 $ 11 $ 13 ROU assets obtained in exchange for new (modified) lease liabilities: Operating leases $ 18 $ 9 $ 3 Financing leases $ 3 $ 4 $ 4 (1) Interest expense related to financing leases was immaterial during 2022, 2021 and 2020. Supplemental Balance Sheet Information Related to Leases DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, LEASES BALANCE SHEET CLASSIFICATION Assets Operating lease ROU assets Other assets $ 102 $ 101 Financing lease ROU assets Property and equipment, net 9 13 Total leased assets $ 111 $ 114 Liabilities Current: Operating lease liabilities Accrued liabilities $ 17 $ 17 Financing lease liabilities Accrued liabilities 5 7 Noncurrent: Operating lease liabilities Other liabilities 91 90 Financing lease liabilities Other liabilities 5 8 Total lease liabilities $ 118 $ 122 Weighted Average Remaining Lease Term DECEMBER 31, DECEMBER 31, Operating leases 8 years 8 years Financing leases 3 years 2 years Weighted Average Discount Rate DECEMBER 31, DECEMBER 31, Operating leases 3.9 % 4.1 % Financing leases 2.9 % 2.9 % Maturities of Lease Liabilities as of December 31, 2022 DOLLAR AMOUNTS IN MILLIONS OPERATING FINANCING 2023 $ 21 $ 5 2024 15 2 2025 14 2 2026 14 1 2027 14 — Thereafter 48 — Total lease payments 126 10 Less: interest ( 18 ) — Total present value of lease liabilities $ 108 $ 10 |
PRODUCT REMEDIATION RECOVERIES,
PRODUCT REMEDIATION RECOVERIES, NET | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
PRODUCT REMEDIATION RECOVERIES, NET | NOTE 18: PROD UCT REMEDIATION RECOVERIES In July 2017, we announced we were implementing a solution to address concerns regarding our TJI® Joists coated with our former Flak Jacket® Protection product. This issue was isolated to Flak Jacket product manufactured after December 1, 2016 and did not affect any of our other products. There were no insurance recoveries recorded during the year ended December 31, 2022. During the years ended December 31, 2021 and 2020 , we recorded insurance recoveries of $ 37 million and $ 8 million, respectively, related to our remediation efforts. The recoveries are attributable to our Wood Products segment and are recorded within “Product remediation recoveries” in our Consolidated Statement of Operations . |
OTHER OPERATING COSTS, NET
OTHER OPERATING COSTS, NET | 12 Months Ended |
Dec. 31, 2022 | |
Other Income [Abstract] | |
OTHER OPERATING COSTS, NET | NOTE 19: OTHER OPERATING COSTS, NET Other operating costs, net: includes both recurring and non-recurring income and expense items and can fluctuate from year to year. Income and Expense Items Included in Other Operating Costs, Net DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Foreign exchange losses (gains), net (1) $ ( 10 ) $ ( 5 ) $ 7 Gain on disposition of nonstrategic assets ( 4 ) ( 3 ) ( 4 ) Insurance recovery — ( 13 ) — Litigation expense, net 14 7 11 Research and development expenses 6 5 5 Restructuring, impairments and other charges 11 — 1 Timber casualty loss — — 80 Other, net (2) 32 42 35 Total other operating costs, net $ 49 $ 33 $ 135 (1) Foreign exchange gains and losses result from changes in exchange rates primarily related to our U.S. dollar denominated cash and debt balances that are held by our Canadian subsidiary. (2) Other, net includes environmental remediation charges. See Note 14: Legal Proceedings, Commitments and Contingencies for more information. ASSET IMPAIRMENT During fourth quarter 2022, we recorded a $ 10 million noncash impairment charge related to the planned divestiture of legacy coal assets. The loss was attributable to our Real Estate & ENR segment and was recorded within "Other operating costs, net” in our Consolidated Statement of Operations . INSURANCE RECOVERY During fourth quarter 2021, we received a $ 13 million insurance recovery related to property damage and business interruption for certain of our mills in the southern U.S. as a result of severe winter storm damage in first quarter 2021. This recovery was attributable to our Wood Products segment and was recorded within “Other operating costs, net” in our Consolidated Statement of Operations . TIMBER CASUALTY LOSS In September 2020, forest fires in the state of Oregon, commonly referred to as the Holiday Farm, Beachie Creek, Riverside, and Archie Creek fires, spread from adjacent lands onto portions of our Oregon timberland properties. Based on interpretation of satellite imagery and aerial photography, as well as limited on-site assessments, we estimated that the fires affected approximately 125 thousand acres of our Oregon timberlands. Our assessments indicated that the extent of damage varied from tract to tract based on topographical conditions, rate of fire spread, age of the timber and other circumstances. Based on these assessments, we expected that the majority of merchantable timber, even if affected by the fires, was likely salvageable if harvested within a reasonable period of time. We believed the majority of pre-merchantable timber affected by the fires would not be able to be salvaged. In third quarter 2020, we recorded a timber casualty loss of $ 80 million which represented the estimated book value of timber and related assets that could not be salvaged based on information available at that time. The loss was attributable to our Timberlands segment and was recorded within “Other operating costs, net” in our Consolidated Statement of Operations . As of December 31, 2022, all salvage volume has been harvested. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 20: IN COME TAXES This note provides details about income taxes applicable to our operations, including the following: earnings before income taxes, provision for income taxes, effective income tax rate, deferred tax assets and liabilities and unrecognized tax benefits. The “Income Taxes” section of Note 1: Summary of Significant Accounting Policies provides details about how we account for our income taxes. EARNINGS BEFORE INCOME TAXES Domestic and Foreign Earnings Before Income Taxes DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Domestic earnings $ 1,982 $ 2,499 $ 723 Foreign earnings 323 817 259 Total earnings before income taxes $ 2,305 $ 3,316 $ 982 PROVISION FOR INCOME TAXES DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Current: Federal $ 252 $ 378 $ 147 State 45 74 30 Foreign 158 243 64 Total current 455 695 241 Deferred: Federal 28 27 ( 66 ) State 6 ( 2 ) ( 1 ) Foreign ( 64 ) ( 11 ) 11 Total deferred ( 30 ) 14 ( 56 ) Total income tax provision $ 425 $ 709 $ 185 EFFECTIVE INCOME TAX RATE DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 U.S. federal statutory income tax $ 484 $ 696 $ 207 State income taxes, net of federal tax benefit 41 57 23 REIT income not subject to federal income tax ( 125 ) ( 102 ) ( 51 ) Return to provision adjustment — — ( 3 ) Foreign taxes 27 62 19 Other, net ( 2 ) ( 4 ) ( 10 ) Total income tax provision $ 425 $ 709 $ 185 Effective income tax rate 18.4 % 21.4 % 18.8 % DEFERRED TAX ASSETS AND LIABILITIES Deferred tax assets and liabilities reflect the future tax effect 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). Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Net noncurrent deferred tax asset $ 8 $ 17 Net noncurrent deferred tax liability ( 96 ) ( 46 ) Net deferred tax liability $ ( 88 ) $ ( 29 ) Items Included in Our Deferred Income Tax Assets (Liabilities) DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Deferred tax assets: Pension and post-employment benefits $ 75 $ 96 State tax credits 42 42 Depletion 14 13 Environmental reserves 13 14 Incentive compensation 17 19 Intercompany land sales 16 15 Workers compensation 14 17 Minerals 11 10 Other reserves 10 14 Other 57 60 Gross deferred tax assets 269 300 Valuation allowance ( 54 ) ( 50 ) Net deferred tax assets 215 250 Deferred tax liabilities: Property, plant and equipment ( 284 ) ( 258 ) Other ( 19 ) ( 21 ) Net deferred tax liabilities ( 303 ) ( 279 ) Net deferred tax liability $ ( 88 ) $ ( 29 ) Net Operating Loss and Credit Carryforwards Our gross federal, state and foreign net operating loss carryforwards as of December 31, 2022 totaled $ 469 million as follows: Federal - U.S. REIT - $ 205 million that will begin to expire in 2034 and $ 168 million that do not expire; State - $ 96 million , w hich will begin to expire in 2028 ; and Foreign - none currently recorded. Our gross state credit carryforwards as of December 31, 2022 totaled $ 53 million , which includes $ 4 million th at expire from 2026 through 2036 a nd $ 49 million that d o not expire. Our U.S. TRSs have $ 9 million in foreign tax credit carryforwards that expire from 2027 through 2032 . 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 $ 54 million as of December 31, 2022, which related to state credits, state net operating losses and foreign tax credits. 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. 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 ). The total gross amount of unrecognized tax benefits as of December 31, 2022 and 2021, as well as the activity during those years, were immaterial. As of December 31, 2022, none of our U.S. federal income tax returns or foreign jurisdiction income tax returns are under examination. Our U.S. federal income tax returns are open to examination for years 2019 forward and foreign jurisdiction income tax returns are open to examination for years 2015 forward. We are undergoing examinations in state jurisdictions for tax years 2016 through 2018, with tax years 2009 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. |
GEOGRAPHIC AREAS
GEOGRAPHIC AREAS | 12 Months Ended |
Dec. 31, 2022 | |
Segments Geographical Areas [Abstract] | |
GEOGRAPHIC AREAS | NOTE 21: GEO GRAPHIC AREAS This note provides selected key financial data according to the geographical locations of our customers. SALES Our sales to unaffiliated customers outside the U.S. are primarily to customers in Canada, Japan, China and Korea. Our export sales are comprised primarily of logs, lumber and wood chips to Japan, Canada, China and Korea. Sales by Geographic Area DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Sales to unaffiliated customers: U.S. $ 8,709 $ 8,709 $ 6,549 Canada 773 778 528 Japan 524 477 326 China 82 123 83 Korea 45 52 27 Other foreign countries 51 62 19 Total $ 10,184 $ 10,201 $ 7,532 Export sales from the U.S.: Japan $ 471 $ 396 $ 292 Canada 143 128 109 China 80 119 79 Korea 40 51 25 Other foreign countries 36 36 10 Total $ 770 $ 730 $ 515 LONG-LIVED ASSETS Our long-lived assets used in the generation of revenues in different geographical areas are nearly all in the U.S. and Canada. Our long-lived assets primarily include: property and equipment, including construction in progress, timber and timberlands and minerals and mineral rights. Long-Lived Assets by Geographic Area DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, U.S. $ 13,979 $ 13,731 Canada 289 307 Total $ 14,268 $ 14,038 |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2022 | |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | |
RESTRICTED CASH | NOTE 22: RES TRICTED CASH The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on our Consolidated Balance Sheet that sum to the total of the amounts shown in our Consolidated Statement of Cash Flows : DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Cash and cash equivalents $ 1,581 $ 1,879 Restricted cash included in other assets (1) — 120 Total cash, cash equivalents and restricted cash $ 1,581 $ 1,999 (1) Amounts included in restricted cash as of December 31, 2021 were comprised of proceeds held by a qualified intermediary that were intended to be reinvested in timber and timberlands through a like-kind exchange transaction. In first quarter 2022, the proceeds were released as a like-kind property was not identified. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Real Estate Investment Trust Election (REIT) | OUR ELECTION TO BE TAXED AS A REAL ESTATE INVESTMENT TRUST (REIT) Our company is a REIT and 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 continue to be required to pay federal corporate income taxes on earnings of our Taxable REIT Subsidiaries (TRSs), which include 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. |
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) Accounting Standards Codification (ASC) Topic 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. We are principally engaged in: growing and harvesting timber; maximizing the value of our acreage through the sale of higher and better use (HBU) properties and monetizing the value of surface and subsurface assets through leases and royalties and manufacturing, distributing and selling products made from trees. Our business segments are organized based primarily on products and services. SEGMENT PRODUCTS AND SERVICES Timberlands Logs, timber, recreational leases and other products. Real Estate & ENR Real Estate (sales of timberlands) and ENR (rights to explore for and extract hard minerals, construction materials, natural gas production, wind and solar). Wood Products Structural lumber, oriented strand board, engineered wood products 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. Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations such as environmental remediation and workers compensation. |
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; pension plan assets measured at fair value 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 unadjusted quoted prices for identical assets or 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. |
Foreign Currency Translation | Foreign Currency Translation 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. |
Reclassifications | Reclassifications We have reclassified certain balances and results from prior years to be consistent with our 2022 reporting. This makes balances comparable from year to year. Our reclassifications had no effect on consolidated net earnings or equity. |
Property and Equipment | Property and Equipment We maintain property accounts on an individual asset basis and account for them as follows: 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. Costs associated with logging roads that we intend to utilize for a period longer than one year are capitalized. 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 | Timber and Timberlands We carry timber and timberlands at cost less depletion. Depletion refers to the carrying value of timber that is harvested 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 and then expense costs after the first planting as they are incurred or over the period of expected benefit. These expensed costs include: fertilization, vegetation and insect control, pruning and precommercial thinning and property taxes. 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. In addition, the duration of the harvest cycle varies by geographic region and species of timber. Depletion rate calculations do not include estimates for: future silviculture or sustainable forest management costs associated with existing stands; future reforestation costs associated with a stand's final harvest and future volume in connection with the replanting of a stand subsequent to its final harvest. 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 costs of sales. 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 the carrying value of long-lived assets whenever an event or a change in circumstance indicates that the carrying value of the asset or asset group may not be recoverable through future operations. The carrying value is the original cost, less accumulated depreciation and any past impairments recorded. Impaired assets held for use are written down to fair value, while 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 future cash flows from the asset, replacement values of comparable assets and agreed upon sale price or offer price. |
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 the fair value. These values are estimates and may not match the amounts we would realize upon sale or settlement of our financial positions. |
Cash Equivalents | Cash Equivalents Cash equivalents are investments with maturities of 90 days or less at the date of purchase. We state cash equivalents at cost, which approximates market. |
Concentration of Risk | Concentration of Risk We disclose customers that represent a concentration of risk. As of December 31, 2022, and December 31, 2021, no customer accounted for 10 percent or more of our net sales. |
Revenue Recognition | Revenue Recognition Refer to Note 3: Revenue Recognition for details on how we account for revenue. PERFORMANCE OBLIGATIONS A performance obligation, as defined in ASC Topic 606, is a promise in a contract to transfer a distinct good or service to a customer. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue at the point in time, or over the period, in which the performance obligation is satisfied. Performance obligations associated with delivered log sales are typically satisfied when the logs are delivered to our customers’ mills or delivered to an ocean vessel in the case of export sales. Performance obligations associated with the sale of wood products are typically satisfied when the products are shipped. We have elected, as an accounting policy, to treat shipping and handling that is performed after a customer obtains control of the product as an activity required to fulfill the promise to transfer the good; therefore we will not evaluate this requirement as a separate performance obligation. Customers are generally invoiced shortly after logs are delivered or after wood products are shipped, with payment generally due within a month or less of the invoice date. ASC Topic 606 requires entities to consider significant financing components of contracts with customers, though allows for the use of a practical expedient when the period between satisfaction of a performance obligation and payment receipt is one year or less. Given the nature of our revenue transactions, we have elected to utilize this practical expedient. Performance obligations associated with real estate sales are generally met when placed into escrow and all conditions of closing have been satisfied. CONTRACT ESTIMATES Substantially all of our performance obligations are satisfied as of a point in time. Therefore, there is little judgment in determining when control transfers for our business segments as described above. The transaction price for log sales generally equals the amount billed to our customer for logs delivered during the accounting period. For the limited number of log sales subject to a long-term supply agreement, the transaction price is variable but is known at the time of billing. For wood products sales, the transaction price is generally the amount billed to the customer for the products shipped but may be reduced slightly for estimated cash discounts and rebates. There are no significant contract estimates related to the real estate business. CONTRACT BALANCES In general, customers are billed and a receivable is recorded as we ship and/or deliver wood products and logs. We generally receive payment shortly after products have been received by our customers. Contract asset and liability balances are immaterial. For real estate sales, the company receives the entire consideration in cash at closing. |
Inventories | Inventories We state inventories at the lower of cost or net realizable value. Cost includes labor, materials and production overhead. LIFO 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 moving average cost or FIFO — the first-in, first-out — methods and those products continue to be recognized under those methods. The moving average cost or FIFO method applies to the balance of our domestic raw material and product inventories, 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 sales" in 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 we have taken on previously filed tax returns are not sustained. 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 net operating loss and tax credit carryforwards. To measure deferred tax assets and liabilities, we: determine when the differences between 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. |
Pension and Other Post-Employment Benefit Plans | Pension and Other Post-Employment Benefit Plans We recognize the overfunded or underfunded status of our defined benefit pension and other post-employment 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 post-employment 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 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 the combination of market-related and fair 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 defined benefit pension plans covering approximately half of our employees. Determination of benefits differs for salaried, hourly and union employees as follows: 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. Post-employment benefits other than pensions. We provide certain post-employment healthcare 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 Post-Employment Benefit Plans provides additional information about our post-employment benefit plans. Estimates for pension and other post-employment benefit plans. Estimates we use in accounting for our pension and other post-employment benefit plans include the: fair value of our plan assets; expected long-term rate of return on plan assets and discount rates. At the end of every year, we review our estimates with external advisers and make adjustments as appropriate. We use these estimates to calculate plan asset and liability information as of year-end as well as pension and post-employment expense for the following year. Actual experience that differs from our estimates and subsequent changes in our estimates could have a significant effect on our financial position, results of operations and cash flows. Fair value of plan assets. Plan assets are assets of the pension plan trusts that fund the benefits provided under the pension plans. The fair value of our plan assets estimates the amount that would be received if we were to sell each asset in an orderly transaction between market participants at the reporting date. We estimate the fair value of these assets based on the information available during the year-end reporting process. Refer to Note 9: Pension and Other Post-Employment Benefit Plans for information about the assets held within our pension plans and their related valuation methods. Expected long-term rate of return on plan assets. Our expected long-term rate of return is our estimate of the return that our plan assets will earn over time. This rate is used in determining the net periodic benefit or cost we recognize for our plans. Factors we consider in determining our expected long-term rate of return include: historical returns for a portfolio of assets similar to our expected allocation and expected future performance of similar asset classes. The actual return on plan assets in any given year may vary from our expected long-term rate of return. Actual returns on plan assets affect the funded status of the plans. Differences between actual returns on plan assets and the expected long-term rate of return are reflected as adjustments to accumulated other comprehensive loss, a component of total equity. Discount rates. Discount rates are used to estimate the net present value of our plan obligations. The discount rates are determined at the measurement date by matching current spot rates of high-quality corporate bonds with maturities similar to the timing of expected cash outflows for benefits. |
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. |
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 and performance share units. 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 | We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability for repurchases that have not yet been settled as of period end. |
Share-based Compensation | HOW WE ACCOUNT FOR SHARE-BASED AWARDS When accounting for share-based awards we: use a fair-value-based measurement 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 fully 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. |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Sales and Net Contribution (Charge) to Earnings | Sales and Net Contribution (Charge) to Earnings DOLLAR AMOUNTS IN MILLIONS UNALLOCATED REAL ITEMS AND ESTATE WOOD INTERSEGMENT TIMBERLANDS & ENR PRODUCTS ELIMINATIONS CONSOLIDATED Sales to unaffiliated customers 2022 $ 1,858 $ 368 $ 7,958 $ — $ 10,184 2021 $ 1,636 $ 344 $ 8,221 $ — $ 10,201 2020 $ 1,466 $ 276 $ 5,790 $ — $ 7,532 Intersegment sales 2022 $ 561 $ — $ — $ ( 561 ) $ — 2021 $ 535 $ — $ — $ ( 535 ) $ — 2020 $ 471 $ — $ — $ ( 471 ) $ — Net contribution (charge) to earnings 2022 $ 528 $ 218 $ 2,536 $ ( 431 ) $ 2,851 2021 $ 464 $ 210 $ 3,211 $ ( 256 ) $ 3,629 2020 $ 455 $ 86 $ 1,340 $ ( 456 ) $ 1,425 |
Reconciliation of Net Contribution to Earnings to Net Earnings (Loss) | Reconciliation of Net Contribution to Earnings to Net Earnings DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Net contribution to earnings $ 2,851 $ 3,629 $ 1,425 Interest expense, net of capitalized interest ( 270 ) ( 313 ) ( 351 ) Loss on debt extinguishment (Note 12) ( 276 ) — ( 92 ) Income before income taxes 2,305 3,316 982 Income taxes ( 425 ) ( 709 ) ( 185 ) Net earnings $ 1,880 $ 2,607 $ 797 |
Additional Financial Information | Additional Financial Information DOLLAR AMOUNTS IN MILLIONS REAL ESTATE WOOD UNALLOCATED TIMBERLANDS & ENR PRODUCTS ITEMS CONSOLIDATED Depreciation, depletion and amortization 2022 $ 256 $ 17 $ 201 $ 6 $ 480 2021 $ 261 $ 15 $ 196 $ 5 $ 477 2020 $ 257 $ 14 $ 195 $ 6 $ 472 Capital expenditures 2022 $ 113 $ — $ 347 $ 8 $ 468 2021 $ 114 $ — $ 320 $ 7 $ 441 2020 $ 104 $ — $ 176 $ 1 $ 281 |
Total Assets | Total Assets DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS AND WOOD UNALLOCATED REAL ESTATE & ENR PRODUCTS ITEMS CONSOLIDATED Total assets (1) 2022 $ 12,682 $ 2,933 $ 1,725 $ 17,340 2021 $ 12,737 $ 2,891 $ 2,024 $ 17,652 (1) Assets attributable to the Real Estate & ENR business segment are combined with total assets for the Timberlands segment as we do not produce separate balance sheets internally. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue by Major Products | A Reconciliation of Revenue Recognized by our Major Products: DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Net sales to unaffiliated customers: Timberlands segment Delivered logs: West Domestic sales $ 414 $ 308 $ 329 Export grade sales 590 561 391 Subtotal West 1,004 869 720 South 645 589 573 North 56 52 52 Subtotal delivered logs sales 1,705 1,510 1,345 Stumpage and pay-as-cut timber 46 31 19 Recreational and other lease revenue 68 65 63 Other (1) 39 30 39 Net sales attributable to Timberlands segment 1,858 1,636 1,466 Real Estate & ENR segment Real estate 235 246 202 Energy and natural resources 133 98 74 Net sales attributable to Real Estate & ENR segment 368 344 276 Wood Products segment Structural lumber 3,374 3,721 2,602 Oriented strand board 1,578 1,840 1,013 Engineered solid section 862 679 505 Engineered I-joists 573 447 316 Softwood plywood 193 210 171 Medium density fiberboard 192 186 171 Complementary building products 840 790 676 Other (2) 346 348 336 Net sales attributable to Wood Products segment 7,958 8,221 5,790 Total $ 10,184 $ 10,201 $ 7,532 (1) Other Timberlands sales includes sales of seeds and seedlings from our nursery operations as well as wood chips. (2) Other Wood Products sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations. |
NET EARNINGS PER SHARE (Tables)
NET EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings per Share | Calculation of Weighted Average Number of Outstanding Common Shares – Dilutive SHARES IN THOUSANDS 2022 2021 2020 Weighted average number of outstanding shares — basic 741,904 749,496 746,931 Dilutive potential common shares: Stock options 253 336 313 Restricted stock units 423 764 403 Performance share units 373 387 252 Total effect of outstanding dilutive potential common shares 1,049 1,487 968 Weighted average number of outstanding common shares — dilutive 742,953 750,983 747,899 |
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 2022 2021 2020 Stock options 610 — 2,107 Performance share units 623 729 781 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories include raw materials, work-in-process and finished goods as well as materials and supplies, as shown below: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, LIFO inventories: Logs $ 32 $ 26 Lumber, plywood, panels and fiberboard 61 61 Other products 9 17 Moving average cost or FIFO inventories: Logs 56 65 Lumber, plywood, panels, fiberboard and engineered wood products 122 106 Other products 140 131 Materials and supplies 130 114 Total $ 550 $ 520 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property Plant And Equipment [Abstract] | |
Carrying Value of Property and Equipment and Estimated Service Lives | Carrying Value of Property and Equipment and Estimated Service Lives DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, RANGE OF LIVES 2022 2021 Property and equipment, at cost: Land N/A $ 83 $ 83 Buildings and improvements 15 - 40 1,166 1,104 Machinery and equipment 5 - 25 3,791 3,640 Roads 10 - 35 743 724 Other 3 - 10 98 98 Total cost 5,881 5,649 Accumulated depreciation and amortization ( 3,710 ) ( 3,592 ) Property and equipment, net $ 2,171 $ 2,057 |
PENSION AND OTHER POST-EMPLOY_2
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 our Consolidated Balance Sheet . DOLLAR AMOUNTS IN MILLIONS PENSION OPEB 2022 2021 2022 2021 Projected benefit obligation at beginning of year $ 3,708 $ 3,971 $ 131 $ 149 Service cost 36 42 — — Interest cost 106 98 3 3 Actuarial gains (1) ( 933 ) ( 206 ) ( 26 ) ( 9 ) Plan participants’ contributions — — 2 2 Benefits paid, including lump sum and annuity transfers ( 598 ) ( 199 ) ( 13 ) ( 13 ) Foreign currency translation and other ( 41 ) 2 ( 2 ) ( 1 ) Projected benefit obligation at end of year $ 2,278 $ 3,708 $ 95 $ 131 Fair value of plan assets at beginning of year (estimated) $ 3,418 $ 3,230 $ 13 $ 15 Actual return on plan assets (2) ( 740 ) 336 — — Employer contributions and benefit payments 17 50 7 9 Plan participants’ contributions — — 2 2 Benefits paid, including lump sum and annuity transfers ( 598 ) ( 199 ) ( 13 ) ( 13 ) Other, including foreign currency translation ( 44 ) 1 ( 1 ) — Fair value of plan assets at end of year (estimated) $ 2,053 $ 3,418 $ 8 $ 13 Presentation on our Consolidated Balance Sheet: (3) Noncurrent assets $ 53 $ 52 $ — $ — Current liabilities ( 14 ) ( 16 ) ( 7 ) ( 7 ) Noncurrent liabilities ( 264 ) ( 326 ) ( 80 ) ( 111 ) Funded status (4) $ ( 225 ) $ ( 290 ) $ ( 87 ) $ ( 118 ) Accumulated benefit obligation at end of year $ 2,218 $ 3,601 N/A N/A Actuarial Assumptions Used in Estimating Our Pension and OPEB Benefit Obligations: Discount rate (5) 5.30 - 5.40 % 2.90 - 3.10 % 5.30 - 5.40 % 2.60 - 3.00 % Rate of compensation increase (6) 1.00 - 13.00 % 2.00 - 13.00 % N/A N/A Lump sum or installment distributions election (7) 70.00 % 60.00 % N/A N/A Healthcare cost trend rate: Assumed for next year (8) N/A N/A 4.50 - 5.70 % 4.50 - 6.20 % Ultimate (8) N/A N/A 4.00 - 4.50 % 4.00 - 4.50 % Year when rate will reach ultimate (8) N/A N/A 2037 - 2040 2037 - 2040 (1) Actuarial gains are primarily due to year over year changes in discount rates. (2) Includes adjustments for final fair value of plan assets. (3) Assets and liabilities on our 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 "Accumulated Other Comprehensive Loss", which is a component of total equity on our Consolidated Balance Sheet . The "Accumulated Other Comprehensive Loss" section of Note 15: Shareholders’ Interest details changes in these amounts by component. (4) For pension plans with a projected benefit obligation exceeding plan assets, the projected benefit obligation and fair value of plan assets were $ 2.1 billion and $ 1.8 billion at December 31, 2022, respectively, and $ 2.9 billion and $ 2.5 billion at December 31, 2021, respectively. For pension plans with an accumulated benefit obligation exceeding plan assets, the accumulated benefit obligation and fair value of plan assets were $ 2.0 billion and $ 1.8 billion at December 31, 2022, respectively, and $ 2.8 billion and $ 2.5 billion at December 31, 2021, respectively. (5) For the U.S. defined benefit plans, the discount rate assumption was 5.4 % and 2.9 % for 2022 and 2021, respectively. For the Canadian defined benefit plans, the discount rate assumption was 5.3 % and 3.1 % for 2022 and 2021, respectively. For U.S. OPEB plans, the discount rate assumption was 5.4 % and 2.6 % for 2022 and 2021, respectively. For Canadian OPEB plans, the discount rate assumption was 5.3 % and 3.0 % for 2022 and 2021, respectively. For lump sum distributions (for U.S. qualified salaried and nonqualified plans only), the discount rate assumption was based on the PPA Phased Table: Interest and mortality assumptions as mandated by the Pension Protection Act of 2006. (6) For the U.S. defined benefit plans, the rate of compensation increase assumption for both 2022 and 2021 was between 2.00 % - 13.00 % for salaried participants and was decreasing with participant age. For the Canadian defined benefit plans, the rate of compensation increase assumption for 2022 was 1.00 % - 2.75 % and 2.00 % - 2.75 % for salaried and hourly participants, respectively, and the rate of compensation increase assumption for 2021 was 3.25 % and 3.00 % for salaried and hourly participants, respectively. (7) U.S. qualified salaried and nonqualified plans only. (8) For U.S. OPEB plans, the healthcare cost trend rate assumption for the next year for Pre-Medicare was 5.70 % and 6.20 % for 2022 and 2021, respectively. The healthcare cost trend rate assumption for Health Reimbursement Account (HRA) was 4.50 % for both 2022 and 2021. The ultimate healthcare cost trend rate was 4.50 % and the assumption for the year the ultimate healthcare cost trend rate is reached was 2037 in both 2022 and 2021. For Canadian OPEB plans, the healthcare cost trend rate was 5.20 % for 2022 and 5.30 % for 2021. The ultimate healthcare cost trend rate was 4.00 % and the assumption for the year the ultimate healthcare cost trend rate is reached was 2040 for both 2022 and 2021. |
Schedules of Allocation of Our Plans' Assets | The net pension plan assets, when categorized in accordance with this fair value hierarchy, are as follows. DOLLAR AMOUNTS IN MILLIONS 2022 2021 LEVEL 1 LEVEL 2 LEVEL 3 TOTAL LEVEL 1 LEVEL 2 LEVEL 3 TOTAL Pension trust investments: Cash and short-term investments $ 73 $ — $ — $ 73 $ 412 $ — $ — $ 412 Public equity investments 18 — — 18 — — — — Fixed income investments: Corporate — 874 — 874 — 1,380 — 1,380 Government — 316 — 316 — 721 — 721 Repurchase agreements — ( 12 ) — ( 12 ) — ( 43 ) — ( 43 ) Hedge funds and related investments (1) — — 16 16 — — 10 10 Private equity and related investments (1) — — 34 34 — — 104 104 Derivative instruments (2) — — — — — 5 — 5 Total pension trust investments measured at fair value (1) $ 91 $ 1,178 $ 50 $ 1,319 $ 412 $ 2,063 $ 114 $ 2,589 Canadian nonregistered plan assets: Cash and short-term investments 5 — — 5 5 — — 5 Public equity investments 3 — — 3 6 — — 6 Total Canadian nonregistered plan assets measured at fair value $ 8 $ — $ — $ 8 $ 11 $ — $ — $ 11 Total plan assets measured at fair value (1) $ 1,327 $ 2,600 (1) December 31, 2022 and 2021 exclude $ 740 million and $ 856 million, respectively, of hedge fund and private equity investments that are measured at fair value using the NAV per share (or its equivalent) as a practical expedient, which are not required to be classified in the fair value hierarchy. Additionally, December 31, 2022 and 2021 exclude $ 14 million and $ 38 million of accrued liabilities, respectively. (2) Derivative instruments include futures contracts. The fair value and aggregate notional value of these contracts were less than $ 1 million and $ 418 million at December 31, 2022, respectively, and $ 5 million and $ 1,126 million at December 31, 2021, respectively. |
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 2022 Beginning Unrealized Purchases, Sales, Transfers Ending Balance Loss Settlements, Net In (Out), Net Balance Hedge funds and related investments $ 10 $ — $ ( 1 ) $ 7 $ 16 Private equity and related investments 104 ( 14 ) ( 16 ) ( 40 ) 34 Total $ 114 $ ( 14 ) $ ( 17 ) $ ( 33 ) $ 50 2021 Beginning Unrealized Purchases, Sales, Transfers Ending Balance Gain Settlements, Net In (Out), Net Balance Hedge funds and related investments $ 4 $ — $ ( 1 ) $ 7 $ 10 Private equity and related investments 68 11 ( 4 ) 29 104 Total $ 72 $ 11 $ ( 5 ) $ 36 $ 114 |
Net Periodic Benefit Cost | Our net periodic benefit cost and the assumptions used to estimate it are shown in the following table. DOLLAR AMOUNTS IN MILLIONS PENSION OPEB 2022 2021 2020 2022 2021 2020 Net periodic benefit cost: Service cost $ 36 $ 42 $ 36 $ — $ — $ — Interest cost 106 98 139 3 3 4 Expected return on plan assets ( 160 ) ( 204 ) ( 234 ) — — — Amortization of actuarial loss 93 115 122 5 5 4 Amortization of prior service cost 3 3 3 ( 1 ) ( 1 ) ( 1 ) Settlement charges 205 — 253 — — — Net periodic benefit cost $ 283 $ 54 $ 319 $ 7 $ 7 $ 7 Actuarial Assumptions Used in Discount rate (1) 2.90 - 3.10 % 2.50 % 3.10 - 3.40 % 2.60 - 3.00 % 2.10 - 2.40 % 3.00 % Expected return on assets (2) 5.00 % 6.00 % 6.50 % N/A N/A N/A Rate of compensation increase (3) 2.00 - 13.00 % 2.00 - 13.00 % 2.00 - 13.00 % N/A N/A N/A Lump sum or installment (4) 60.00 % 60.00 % 60.00 % N/A N/A N/A Weighted healthcare cost trend (5) N/A N/A N/A 4.50 - 6.20 % 4.50 - 6.80 % 4.50 - 7.30 % (1) For the U.S. defined benefit plans, the discount rate assumption was 2.90 %, 2.50 % and 3.40 % for 2022, 2021 and 2020, respectively. For the Canadian defined benefit plans, the discount rate assumption was 3.10 %, 2.50 % and 3.10 % for 2022, 2021 and 2020, respectively. For U.S. OPEB plans, the discount rate assumption was 2.60 %, 2.10 % and 3.00 %, for 2022, 2021 and 2020, respectively. For Canadian OPEB plans, the discount rate assumption was 3.00 %, 2.40 % and 3.00 % for 2022, 2021 and 2020, respectively. For lump sum distributions (for U.S. qualified salaried and nonqualified plans only), the discount rate assumption was based on the PPA Phased Table: Interest and mortality assumptions as mandated by the Pension Protection Act of 2006. (2) Determining our expected return requires a high degree of judgment. We consider actual pension fund asset 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. (3) For the U.S. defined benefit plans, the rate of compensation increase assumption for 2022, 2021 and 2020 was between 2.00 % - 13.00 % for salaried participants and was decreasing with participant age. For the Canadian defined benefit plans, the rate of compensation increase assumption for salaried participants was 3.25 % for 2022, 2021 and 2020. The rate of compensation increase assumption for hourly participants was 3.00 % for 2022, 2021 and 2020. (4) U.S. qualified salaried and nonqualified plans only. (5) For OPEB plans during 2022, the assumed weighted healthcare cost trend rate was 6.20 %, 4.50 % and 5.30 % for U.S. Pre-Medicare participants, U.S. HRA participants and Canadian OPEB plans, respectively. |
Estimated Projected Benefit Payments for the Next 10 Years | Estimated Projected Benefit Payments for the Next 10 Years DOLLAR AMOUNTS IN MILLIONS PENSION OPEB 2023 $ 164 $ 11 2024 $ 145 $ 11 2025 $ 145 $ 10 2026 $ 150 $ 9 2027 $ 152 $ 9 2028-2032 $ 794 $ 36 |
Qualified and Registered Plans | |
Schedules of Allocation of Our Plans' Assets | Assets within our U.S. and Canadian pension trusts were invested as follows: DECEMBER 31, DECEMBER 31, Cash and short-term investments (1) 3.6 % 12.1 % Public equity investments (2) 0.9 — Fixed income investments: (3) Corporate 42.7 40.5 Government 15.5 21.2 Repurchase agreements ( 0.6 ) ( 1.3 ) Hedge funds and related investments (4)(5) 4.2 3.6 Private equity and related investments (5)(6) 34.5 24.9 Derivative instruments, net (7) — 0.1 Accrued liabilities ( 0.8 ) ( 1.1 ) Total 100.0 % 100.0 % (1) Cash and short-term investments are valued at cost, which approximates market. The increased cash holding at year-end 2021 was a result of the 2021 Secondary Sale transaction timing. Refer to “U.S. and Canadian Pension Trusts” above for further information. (2) Public equity investments are valued at exit prices quoted in active markets. (3) Fixed income investments include publicly traded corporate and government issued debt. These bonds have varying maturities, credit quality and sector exposure and are selected to align with the duration of our plan liabilities. Additionally, our fixed income portfolio includes repurchase agreements, which represent short-term borrowings to hedge against interest rate risk. We have an obligation to return the cash related to these borrowings in accordance with the agreements, which are collateralized by our government bonds. Fixed income investments are valued at exit prices quoted in active or non-active markets or based on observable inputs. (4) Hedge funds 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. (5) These investments are primarily valued based on the NAVs 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 NAVs as of the end of the year have not been received, we estimate fair value by adjusting the most recently reported NAVs for market events and cash flows between the interim date and the end of the year. (6) Private equity and related investments include both investments in private equity and investments in mezzanine distressed, co-investments and other structures. Private equity funds generally participate in buyout and venture capital strategies 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. (7) Derivative instruments have historically been comprised of swaps, futures, forwards or options. Consistent with our shift in asset strategy, our positions in derivative instruments have been significantly reduced. At December 31, 2022, only a small amount of futures remain in our portfolio. Derivative instruments are valued based upon valuation statements received from each derivative’s counterparty. |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Accrued liabilities were comprised of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Compensation and employee benefit costs $ 201 $ 225 Current portion of lease liabilities (Note 17) 22 24 Customer rebates, volume discounts and deferred income 132 164 Interest 69 83 Taxes payable 23 106 Other 64 71 Total $ 511 $ 673 |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Short Term Debt Other Disclosures [Abstract] | |
Letters of Credit and Surety Bonds | LETTERS OF CREDIT AND SURETY BONDS The amounts of letters of credit and surety bonds we have entered into as of the end of the last two years are included in the following table: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Letters of credit $ 34 $ 34 Surety bonds $ 121 $ 136 |
LONG-TERM DEBT, NET (Tables)
LONG-TERM DEBT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt by Types and Interest Rates (Includes Current Portion) | 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, 7.125 % debentures due 2023 $ 118 $ 191 5.207 % installment note due 2023 860 860 8.50 % debentures due 2025 139 300 7.95 % debentures due 2025 71 136 7.70 % debentures due 2026 150 150 7.35 % debentures due 2026 62 62 7.85 % debentures due 2026 60 100 6.95 % debentures due 2027 300 300 4.00 % notes due 2029 750 750 4.00 % notes due 2030 750 750 7.375 % debentures due 2032 657 1,250 6.875 % debentures due 2033 275 275 3.375 % debentures due 2033 450 — 4.00 % debentures due 2052 450 — Other 1 1 Total principal long-term debt 5,093 5,125 Add: business combination fair value adjustment 4 8 Less: unamortized discounts ( 37 ) ( 26 ) Less: unamortized debt expense ( 7 ) ( 8 ) Total $ 5,053 $ 5,099 Principal due within one year $ 978 $ — |
Amounts of Long-Term Debt Due Annually for the Next Five Years and Thereafter | Amounts of Long-Term Debt Due Annually for the Next Five Years and Thereafter DOLLAR AMOUNTS IN MILLIONS (1) 2023 $ 978 2024 $ — 2025 $ 210 2026 $ 272 2027 $ 300 Thereafter $ 3,333 (1) Excludes $ 40 million of unamortized discounts, capitalized debt expense and business combination fair value adjustment. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
Estimated Fair Values and Carrying Values of Long-Term Debt | The estimated carrying value and fair value of our long-term debt consisted of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Long-term fixed rate debt (including current maturities): Carrying value $ 5,053 $ 5,099 Fair value (level 2) $ 4,918 $ 6,221 |
LEGAL PROCEEDINGS, COMMITMENT_2
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Changes in the Accrual for Environmental Remediation | Changes in the Accrual for Environmental Remediation DOLLAR AMOUNTS IN MILLIONS Accrual balance as of December 31, 2021 $ 63 Charges and adjustments, net 6 Payments ( 5 ) Accrual balance as of December 31, 2022 $ 64 |
SHAREHOLDERS' INTEREST (Tables)
SHAREHOLDERS' INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders Equity Note [Abstract] | |
Reconciliation of Our Common Share Activity | Reconciliation of Our Common Share Activity SHARES IN THOUSANDS 2022 2021 2020 Outstanding at beginning of year 747,301 747,385 745,300 Stock options exercised 509 1,849 1,441 Issued for vested restricted stock units 676 635 574 Issued for vested performance share units 291 162 70 Repurchased ( 15,983 ) ( 2,730 ) — Outstanding at end of year 732,794 747,301 747,385 |
Changes in Amounts Included in Our Accumulated Other Comprehensive Loss | Changes in amounts included in our accumulated other comprehensive loss by component are: DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Pension (1) Balance at beginning of period $ ( 720 ) $ ( 1,064 ) $ ( 1,128 ) Other comprehensive income (loss) before reclassifications 38 254 ( 223 ) Amounts reclassified from accumulated other comprehensive income (loss) (2)(3) 224 90 287 Total other comprehensive income 262 344 64 Balance at end of period ( 458 ) ( 720 ) ( 1,064 ) Other post-employment benefits (1) Balance at beginning of period ( 2 ) ( 12 ) ( 12 ) Other comprehensive income (loss) before reclassifications 19 6 ( 3 ) Amounts reclassified from accumulated other comprehensive income (loss) (2) 3 4 3 Total other comprehensive income 22 10 — Balance at end of period 20 ( 2 ) ( 12 ) Translation adjustments and other Balance at beginning of period 243 254 236 Translation adjustments ( 52 ) ( 11 ) 18 Total other comprehensive income (loss) ( 52 ) ( 11 ) 18 Balance at end of period 191 243 254 Accumulated other comprehensive loss, end of period $ ( 247 ) $ ( 479 ) $ ( 822 ) (1) Amounts are presented net of tax. (2) Amounts of actuarial loss and prior service (cost) credit are components of net periodic benefit cost (credit). See Note 9: Pension and Other Post-Employment Benefit Plans . (3) Amounts include settlement charges totaling $ 205 million and $ 253 million related to our pension plans for the year ended December 31, 2022 and December 31, 2020, respectively. There were no s ettlement charges related to our pension plans for the year ended December 31, 2021. See Note 9: Pension and Other Post-Employment Benefit Plans for further detail. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share Based Compensation [Abstract] | |
Schedule of Restricted Stock Units Activity | Activity The following table shows our RSU activity for 2022: RESTRICTED WEIGHTED STOCK UNITS GRANT-DATE (IN THOUSANDS) FAIR VALUE Nonvested at December 31, 2021 1,756 $ 30.87 Granted 626 $ 42.02 Vested ( 709 ) $ 30.83 Forfeited ( 100 ) $ 37.17 Nonvested at December 31, 2022 (1) 1,573 $ 34.93 (1) As of December 31, 2022, there were approximately 185 thou sand RSUs 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 PSUs 2022 2021 2020 Performance period 2/10/2022 - 12/31/2024 2/11/2021 - 12/31/2023 2/13/2020 - 12/31/2022 Expected dividends 1.72 % 1.99 % 4.50 % Risk-free rate 0.34 % - 1.84 % 0.02 % - 0.20 % 1.45 % - 1.62 % Volatility 26.27 % - 41.01 % 32.87 % - 52.82 % 20.02 % - 22.40 % Weighted average grant-date fair value $ 49.77 $ 38.50 $ 33.16 |
Schedule of Performance Share Units Activity | Activity The following table shows our PSU activity for 2022: GRANTS WEIGHTED (IN THOUSANDS) FAIR VALUE Nonvested at December 31, 2021 1,104 $ 33.56 Granted at target 306 $ 49.77 Vested ( 416 ) $ 29.66 Forfeited ( 52 ) $ 43.69 Performance adjustment 20 $ 29.66 Nonvested at December 31, 2022 (1) 962 $ 39.77 (1) As of December 31, 2022, there were approximately 116 thous and PSUs that had met the requisite service period and will be released as identified in the grant terms. |
Schedule of Stock Options Activity | Activity The following table shows our stock option activity for 2022: WEIGHTED WEIGHTED REMAINING AGGREGATE AVERAGE CONTRACTUAL INTRINSIC OPTIONS EXERCISE TERM VALUE (IN THOUSANDS) PRICE (IN YEARS) (IN MILLIONS) Outstanding at December 31, 2021 1,917 $ 29.88 Exercised ( 510 ) $ 29.72 Forfeited or expired ( 9 ) $ 35.40 Outstanding at December 31, 2022 1,398 $ 29.91 2.26 $ 4 Exercisable at December 31, 2022 1,398 $ 29.91 2.26 $ 4 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Lease Expense | Lease Expense DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Operating lease costs $ 21 $ 20 $ 21 Financing lease costs 7 9 12 Total lease costs $ 28 $ 29 $ 33 |
Supplemental Cash Flow Information | Supplemental Cash Flow Information DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 21 $ 19 $ 20 Financing cash flows for financing leases (1) $ 8 $ 11 $ 13 ROU assets obtained in exchange for new (modified) lease liabilities: Operating leases $ 18 $ 9 $ 3 Financing leases $ 3 $ 4 $ 4 (1) Interest expense related to financing leases was immaterial during 2022, 2021 and 2020. |
Supplemental Balance Sheet Information Related to Leases | Supplemental Balance Sheet Information Related to Leases DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, LEASES BALANCE SHEET CLASSIFICATION Assets Operating lease ROU assets Other assets $ 102 $ 101 Financing lease ROU assets Property and equipment, net 9 13 Total leased assets $ 111 $ 114 Liabilities Current: Operating lease liabilities Accrued liabilities $ 17 $ 17 Financing lease liabilities Accrued liabilities 5 7 Noncurrent: Operating lease liabilities Other liabilities 91 90 Financing lease liabilities Other liabilities 5 8 Total lease liabilities $ 118 $ 122 |
Weighted Average Remaining Lease Term | Weighted Average Remaining Lease Term DECEMBER 31, DECEMBER 31, Operating leases 8 years 8 years Financing leases 3 years 2 years Weighted Average Discount Rate DECEMBER 31, DECEMBER 31, Operating leases 3.9 % 4.1 % Financing leases 2.9 % 2.9 % |
Schedule of Maturities of Operating and Finance Leases Liabilities | Maturities of Lease Liabilities as of December 31, 2022 DOLLAR AMOUNTS IN MILLIONS OPERATING FINANCING 2023 $ 21 $ 5 2024 15 2 2025 14 2 2026 14 1 2027 14 — Thereafter 48 — Total lease payments 126 10 Less: interest ( 18 ) — Total present value of lease liabilities $ 108 $ 10 |
OTHER OPERATING COSTS, NET (Tab
OTHER OPERATING COSTS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income [Abstract] | |
Income and Expense Items Included in Other Operating Costs, Net | Income and Expense Items Included in Other Operating Costs, Net DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Foreign exchange losses (gains), net (1) $ ( 10 ) $ ( 5 ) $ 7 Gain on disposition of nonstrategic assets ( 4 ) ( 3 ) ( 4 ) Insurance recovery — ( 13 ) — Litigation expense, net 14 7 11 Research and development expenses 6 5 5 Restructuring, impairments and other charges 11 — 1 Timber casualty loss — — 80 Other, net (2) 32 42 35 Total other operating costs, net $ 49 $ 33 $ 135 (1) Foreign exchange gains and losses result from changes in exchange rates primarily related to our U.S. dollar denominated cash and debt balances that are held by our Canadian subsidiary. (2) Other, net includes environmental remediation charges. See Note 14: Legal Proceedings, Commitments and Contingencies for more information. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign Earnings (Loss) Before Income Taxes | Domestic and Foreign Earnings Before Income Taxes DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Domestic earnings $ 1,982 $ 2,499 $ 723 Foreign earnings 323 817 259 Total earnings before income taxes $ 2,305 $ 3,316 $ 982 |
Provision (Benefit) for Income Taxes | PROVISION FOR INCOME TAXES DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Current: Federal $ 252 $ 378 $ 147 State 45 74 30 Foreign 158 243 64 Total current 455 695 241 Deferred: Federal 28 27 ( 66 ) State 6 ( 2 ) ( 1 ) Foreign ( 64 ) ( 11 ) 11 Total deferred ( 30 ) 14 ( 56 ) Total income tax provision $ 425 $ 709 $ 185 |
Effective Income Tax Rate Applicable | EFFECTIVE INCOME TAX RATE DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 U.S. federal statutory income tax $ 484 $ 696 $ 207 State income taxes, net of federal tax benefit 41 57 23 REIT income not subject to federal income tax ( 125 ) ( 102 ) ( 51 ) Return to provision adjustment — — ( 3 ) Foreign taxes 27 62 19 Other, net ( 2 ) ( 4 ) ( 10 ) Total income tax provision $ 425 $ 709 $ 185 Effective income tax rate 18.4 % 21.4 % 18.8 % |
Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) | Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Net noncurrent deferred tax asset $ 8 $ 17 Net noncurrent deferred tax liability ( 96 ) ( 46 ) Net deferred tax liability $ ( 88 ) $ ( 29 ) |
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, Deferred tax assets: Pension and post-employment benefits $ 75 $ 96 State tax credits 42 42 Depletion 14 13 Environmental reserves 13 14 Incentive compensation 17 19 Intercompany land sales 16 15 Workers compensation 14 17 Minerals 11 10 Other reserves 10 14 Other 57 60 Gross deferred tax assets 269 300 Valuation allowance ( 54 ) ( 50 ) Net deferred tax assets 215 250 Deferred tax liabilities: Property, plant and equipment ( 284 ) ( 258 ) Other ( 19 ) ( 21 ) Net deferred tax liabilities ( 303 ) ( 279 ) Net deferred tax liability $ ( 88 ) $ ( 29 ) |
GEOGRAPHIC AREAS (Tables)
GEOGRAPHIC AREAS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segments Geographical Areas [Abstract] | |
Sales by Geographic Area | Sales by Geographic Area DOLLAR AMOUNTS IN MILLIONS 2022 2021 2020 Sales to unaffiliated customers: U.S. $ 8,709 $ 8,709 $ 6,549 Canada 773 778 528 Japan 524 477 326 China 82 123 83 Korea 45 52 27 Other foreign countries 51 62 19 Total $ 10,184 $ 10,201 $ 7,532 Export sales from the U.S.: Japan $ 471 $ 396 $ 292 Canada 143 128 109 China 80 119 79 Korea 40 51 25 Other foreign countries 36 36 10 Total $ 770 $ 730 $ 515 |
Long-Lived Assets by Geographic Area | Long-Lived Assets by Geographic Area DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, U.S. $ 13,979 $ 13,731 Canada 289 307 Total $ 14,268 $ 14,038 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on our Consolidated Balance Sheet that sum to the total of the amounts shown in our Consolidated Statement of Cash Flows : DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Cash and cash equivalents $ 1,581 $ 1,879 Restricted cash included in other assets (1) — 120 Total cash, cash equivalents and restricted cash $ 1,581 $ 1,999 (1) Amounts included in restricted cash as of December 31, 2021 were comprised of proceeds held by a qualified intermediary that were intended to be reinvested in timber and timberlands through a like-kind exchange transaction. In first quarter 2022, the proceeds were released as a like-kind property was not identified. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Employee benefits retirement period | 10 years | |
Customers | Net Sales | Customer Concentration Risk | ||
Concentration risk, percentage | 10% | 10% |
Canada | Minimum | ||
Term of timber lease | 15 years | |
Canada | Maximum | ||
Term of timber lease | 25 years |
BUSINESS SEGMENTS - Sales and N
BUSINESS SEGMENTS - Sales and Net Contribution (Charge) to Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | $ 10,184 | $ 10,201 | $ 7,532 |
Net contribution (charge) to earnings | 2,851 | 3,629 | 1,425 |
Timberlands | |||
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | 1,858 | 1,636 | 1,466 |
Real Estate & ENR | |||
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | 368 | 344 | 276 |
Wood Products | |||
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | 7,958 | 8,221 | 5,790 |
Operating segments | Timberlands | |||
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | 1,858 | 1,636 | 1,466 |
Net contribution (charge) to earnings | 528 | 464 | 455 |
Operating segments | Real Estate & ENR | |||
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | 368 | 344 | 276 |
Net contribution (charge) to earnings | 218 | 210 | 86 |
Operating segments | Wood Products | |||
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | 7,958 | 8,221 | 5,790 |
Net contribution (charge) to earnings | 2,536 | 3,211 | 1,340 |
Unallocated Items | |||
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | 0 | 0 | 0 |
Net contribution (charge) to earnings | (431) | (256) | (456) |
Intersegment eliminations | |||
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | (561) | (535) | (471) |
Intersegment eliminations | Timberlands | |||
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | 561 | 535 | 471 |
Intersegment eliminations | Real Estate & ENR | |||
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | 0 | 0 | 0 |
Intersegment eliminations | Wood Products | |||
Segment Reporting, Revenue Reconciling Item | |||
Sales to unaffiliated customers | $ 0 | $ 0 | $ 0 |
BUSINESS SEGMENTS - Reconciliat
BUSINESS SEGMENTS - Reconciliation of Net Contribution to Earnings to Net Earnings (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation From Segment Totals To Consolidated [Abstract] | |||
Net contribution to earnings | $ 2,851 | $ 3,629 | $ 1,425 |
Interest expense, net of capitalized interest | (270) | (313) | (351) |
Loss on debt extinguishment (Note 12) | (276) | 0 | (92) |
Earnings before income taxes | 2,305 | 3,316 | 982 |
Income taxes (Note 20) | (425) | (709) | (185) |
Net earnings | $ 1,880 | $ 2,607 | $ 797 |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | $ 480 | $ 477 | $ 472 |
Capital expenditures | 468 | 441 | 281 |
Operating segments | Timberlands | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 256 | 261 | 257 |
Capital expenditures | 113 | 114 | 104 |
Operating segments | Real Estate & ENR | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 17 | 15 | 14 |
Capital expenditures | 0 | 0 | 0 |
Operating segments | Wood Products | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 201 | 196 | 195 |
Capital expenditures | 347 | 320 | 176 |
Unallocated Items | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 6 | 5 | 6 |
Capital expenditures | $ 8 | $ 7 | $ 1 |
BUSINESS SEGMENTS - Total Asset
BUSINESS SEGMENTS - Total Assets (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 17,340 | $ 17,652 |
Operating segments | Timberlands and Real Estate & ENR | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 12,682 | 12,737 |
Operating segments | Wood Products | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 2,933 | 2,891 |
Unallocated Items | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 1,725 | $ 2,024 |
REVENUE RECOGNITION - Revenue b
REVENUE RECOGNITION - Revenue by Major Products (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from External Customer | |||
Net sales | $ 10,184 | $ 10,201 | $ 7,532 |
Timberlands | |||
Revenue from External Customer | |||
Net sales | 1,858 | 1,636 | 1,466 |
Timberlands | Delivered logs | |||
Revenue from External Customer | |||
Net sales | 1,705 | 1,510 | 1,345 |
Timberlands | Stumpage and pay-as-cut timber | |||
Revenue from External Customer | |||
Net sales | 46 | 31 | 19 |
Timberlands | Recreational and other lease revenue | |||
Revenue from External Customer | |||
Net sales | 68 | 65 | 63 |
Timberlands | Other | |||
Revenue from External Customer | |||
Net sales | 39 | 30 | 39 |
Timberlands | West | Delivered logs | |||
Revenue from External Customer | |||
Net sales | 1,004 | 869 | 720 |
Timberlands | South | Delivered logs | |||
Revenue from External Customer | |||
Net sales | 645 | 589 | 573 |
Timberlands | North | Delivered logs | |||
Revenue from External Customer | |||
Net sales | 56 | 52 | 52 |
Timberlands | Domestic grade sales | West | Delivered logs | |||
Revenue from External Customer | |||
Net sales | 414 | 308 | 329 |
Timberlands | Export grade sales | West | Delivered logs | |||
Revenue from External Customer | |||
Net sales | 590 | 561 | 391 |
Real Estate & ENR | |||
Revenue from External Customer | |||
Net sales | 368 | 344 | 276 |
Real Estate & ENR | Real Estate | |||
Revenue from External Customer | |||
Net sales | 235 | 246 | 202 |
Real Estate & ENR | Energy and natural resources | |||
Revenue from External Customer | |||
Net sales | 133 | 98 | 74 |
Wood Products | |||
Revenue from External Customer | |||
Net sales | 7,958 | 8,221 | 5,790 |
Wood Products | Structural lumber | |||
Revenue from External Customer | |||
Net sales | 3,374 | 3,721 | 2,602 |
Wood Products | Oriented strand board | |||
Revenue from External Customer | |||
Net sales | 1,578 | 1,840 | 1,013 |
Wood Products | Engineered solid section | |||
Revenue from External Customer | |||
Net sales | 862 | 679 | 505 |
Wood Products | Engineered I-joists | |||
Revenue from External Customer | |||
Net sales | 573 | 447 | 316 |
Wood Products | Softwood plywood | |||
Revenue from External Customer | |||
Net sales | 193 | 210 | 171 |
Wood Products | Medium density fiberboard | |||
Revenue from External Customer | |||
Net sales | 192 | 186 | 171 |
Wood Products | Complementary building products | |||
Revenue from External Customer | |||
Net sales | 840 | 790 | 676 |
Wood Products | Other | |||
Revenue from External Customer | |||
Net sales | $ 346 | $ 348 | $ 336 |
TIMBERLAND ACQUISITIONS AND D_2
TIMBERLAND ACQUISITIONS AND DIVESTITURES - Additional Information (Details) a in Thousands, $ in Millions | 12 Months Ended | |||||||||||||
Apr. 14, 2022 USD ($) a | Jul. 07, 2021 USD ($) | Apr. 30, 2021 a | Feb. 25, 2021 USD ($) a | Nov. 19, 2020 USD ($) | Nov. 17, 2020 USD ($) | Sep. 01, 2020 a | Mar. 26, 2020 USD ($) | Dec. 17, 2019 a | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | May 18, 2022 USD ($) | Apr. 27, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||||||||||
Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain Loss On Sale Of Property | |||||||||||||
Payments for purchase of timberlands | $ 295 | $ 149 | $ 425 | |||||||||||
North and South Carolina | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Area of timberlands agreed to be purchased | a | 81 | |||||||||||||
Payments to acquire timberlands | $ 265 | |||||||||||||
Timberlands acquisition, timber and timberlands at cost, less depletion | $ 263 | |||||||||||||
Timberlands acquisition, property and equipment, net | $ 2 | |||||||||||||
Washington | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Area of timberlands agreed to be sold | a | 145 | |||||||||||||
Proceeds from disposition of operations | $ 261 | |||||||||||||
Gain on sale of discontinued operations | $ 32 | |||||||||||||
ALABAMA | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Area of timberlands agreed to be purchased | a | 69 | |||||||||||||
Payments to acquire timberlands | $ 149 | |||||||||||||
Timberlands acquisition, timber and timberlands at cost, less depletion | $ 148 | |||||||||||||
Timberlands acquisition, property and equipment, net | $ 1 | |||||||||||||
Oregon | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Area of timberlands agreed to be purchased | a | 85 | |||||||||||||
Timberlands acquisition, timber and timberlands at cost, less depletion | $ 421 | |||||||||||||
Timberlands acquisition, property and equipment, net | 4 | |||||||||||||
Area of timberlands agreed to be sold | a | 149 | |||||||||||||
Proceeds from disposition of operations | $ 381 | |||||||||||||
Gain on sale of discontinued operations | $ 182 | |||||||||||||
Payments for purchase of timberlands | $ 425 | |||||||||||||
Montana | ||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||
Area of timberlands agreed to be sold | a | 630 | |||||||||||||
Proceeds from disposition of operations | $ 145 |
NET EARNINGS PER SHARE - Additi
NET EARNINGS PER SHARE - Additional Information (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Earnings per share, basic | $ 2.53 | $ 3.48 | $ 1.07 |
Earnings per share, diluted | $ 2.53 | $ 3.47 | $ 1.07 |
NET EARNINGS PER SHARE - Schedu
NET EARNINGS PER SHARE - Schedule of Earning per share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share Basic And Diluted [Line Items] | |||
Basic | 741,904 | 749,496 | 746,931 |
Dilutive potential common shares | 1,049 | 1,487 | 968 |
Diluted | 742,953 | 750,983 | 747,899 |
Stock options | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Dilutive potential common shares | 253 | 336 | 313 |
Restricted stock units | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Dilutive potential common shares | 423 | 764 | 403 |
Performance share units | |||
Earnings Per Share Basic And Diluted [Line Items] | |||
Dilutive potential common shares | 373 | 387 | 252 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock options | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential shares not included in the computation of diluted earnings (loss) per share | 610 | 0 | 2,107 |
Performance share units | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Potential shares not included in the computation of diluted earnings (loss) per share | 623 | 729 | 781 |
INVENTORIES - Inventories (Deta
INVENTORIES - Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory [Line Items] | ||
Total | $ 550 | $ 520 |
Logs | ||
Inventory [Line Items] | ||
LIFO inventories | 32 | 26 |
Moving average cost or FIFO inventories | 56 | 65 |
Lumber, plywood, panels and fiberboard | ||
Inventory [Line Items] | ||
LIFO inventories | 61 | 61 |
Lumber, plywood, panels, fiberboard and engineered wood products | ||
Inventory [Line Items] | ||
Moving average cost or FIFO inventories | 122 | 106 |
Other products | ||
Inventory [Line Items] | ||
LIFO inventories | 9 | 17 |
Moving average cost or FIFO inventories | 140 | 131 |
Materials and supplies | ||
Inventory [Line Items] | ||
Moving average cost or FIFO inventories | $ 130 | $ 114 |
INVENTORIES - Additional Inform
INVENTORIES - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Increase in inventory amount if FIFO would have been used | $ 129 | $ 103 |
PROPERTY AND EQUIPMENT, NET - C
PROPERTY AND EQUIPMENT, NET - Carrying Value of Property and Equipment and Estimated Service Lives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property and Equipment [Line Items] | ||
Property and equipment, at cost | $ 5,881 | $ 5,649 |
Accumulated depreciation and amortization | (3,710) | (3,592) |
Property and equipment, net | 2,171 | 2,057 |
Land | ||
Property and Equipment [Line Items] | ||
Property and equipment, at cost | 83 | 83 |
Buildings and improvements | ||
Property and Equipment [Line Items] | ||
Property and equipment, at cost | $ 1,166 | 1,104 |
Buildings and improvements | Minimum | ||
Property and Equipment [Line Items] | ||
Estimated service lives | 15 years | |
Buildings and improvements | Maximum | ||
Property and Equipment [Line Items] | ||
Estimated service lives | 40 years | |
Machinery and Equipment | ||
Property and Equipment [Line Items] | ||
Property and equipment, at cost | $ 3,791 | 3,640 |
Machinery and Equipment | Minimum | ||
Property and Equipment [Line Items] | ||
Estimated service lives | 5 years | |
Machinery and Equipment | Maximum | ||
Property and Equipment [Line Items] | ||
Estimated service lives | 25 years | |
Roads | ||
Property and Equipment [Line Items] | ||
Property and equipment, at cost | $ 743 | 724 |
Roads | Minimum | ||
Property and Equipment [Line Items] | ||
Estimated service lives | 10 years | |
Roads | Maximum | ||
Property and Equipment [Line Items] | ||
Estimated service lives | 35 years | |
Other | ||
Property and Equipment [Line Items] | ||
Property and equipment, at cost | $ 98 | $ 98 |
Other | Minimum | ||
Property and Equipment [Line Items] | ||
Estimated service lives | 3 years | |
Other | Maximum | ||
Property and Equipment [Line Items] | ||
Estimated service lives | 10 years |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 480 | $ 477 | $ 472 |
Property and Equipment | |||
Property and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 249 | $ 241 | $ 243 |
RELATED PARTIES - Additional In
RELATED PARTIES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | ||
Proceeds from note receivable held by variable interest entities | $ 362 | |
Buyer-sponsored SPEs | ||
Related Party Transaction [Line Items] | ||
Weighted average interest rate on SPE financial investments | 5.50% |
PENSION AND OTHER POST-EMPLOY_3
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions and benefit payments | $ 31 | $ 27 | $ 27 | |
U.S. Qualified Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan | 790 | |||
Canadian Qualified Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan | 420 | |||
Qualified and Registered Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, private equity and hedge fund investments to a third party | $ 189 | |||
Registered Pension Plans | Canada | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions and benefit payments | 2 | |||
Expected contribution to benefit plans during 2023 | 2 | |||
Non Registered Plans | Canada | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions and benefit payments | 2 | |||
Expected contribution to benefit plans during 2023 | 2 | |||
Non Qualified Pension Plans Defined Benefit | U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions and benefit payments | 13 | |||
Expected contribution to benefit plans during 2023 | 12 | |||
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Plan Assets, Payment for Settlement | 205 | $ 253 | ||
Employer contributions and benefit payments | 17 | 50 | ||
Other Post-employment Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions and benefit payments | 7 | $ 9 | ||
Expected contribution to benefit plans during 2023 | 7 | |||
Other Post-employment Benefits | Collective Bargaining Arrangement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Expected contribution to benefit plans during 2023 | 4 | |||
Other Post-employment Benefits | Canada | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions and benefit payments | 3 | |||
Other Post-employment Benefits | U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions and benefit payments | $ 4 |
PENSION AND OTHER POST-EMPLOY_4
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS - Funded Status of Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of year | $ 3,708 | $ 3,971 | |
Service cost | 36 | 42 | $ 36 |
Interest cost | 106 | 98 | 139 |
Actuarial gains | (933) | (206) | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid, including lump sum and annuity transfers | (598) | (199) | |
Foreign currency translation and other | (41) | 2 | |
Projected benefit obligation at end of year | 2,278 | 3,708 | 3,971 |
Fair value of plan assets at beginning of year (estimated) | 3,418 | 3,230 | |
Actual return on plan assets | (740) | 336 | |
Employer contributions and benefit payments | 17 | 50 | |
Plan participants’ contributions | 0 | 0 | |
Benefits paid, including lump sum and annuity transfers | (598) | (199) | |
Other, including foreign currency translation | (44) | 1 | |
Fair value of plan assets at end of year (estimated) | 2,053 | 3,418 | 3,230 |
Noncurrent assets | 53 | 52 | |
Current liabilities | (14) | (16) | |
Noncurrent liabilities | (264) | (326) | |
Funded status | (225) | (290) | |
Accumulated benefit obligation at end of year | $ 2,218 | $ 3,601 | |
Lump sum or installment distributions election | 70% | 60% | |
Pension | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.40% | 2.90% | |
Pension | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.30% | 3.10% | |
Pension | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.30% | 2.90% | |
Rate of compensation increase | 1% | 2% | |
Pension | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.40% | 3.10% | |
Rate of compensation increase | 13% | 13% | |
Other Post-employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation at beginning of year | $ 131 | $ 149 | |
Service cost | 0 | 0 | 0 |
Interest cost | 3 | 3 | 4 |
Actuarial gains | (26) | (9) | |
Plan participants’ contributions | 2 | 2 | |
Benefits paid, including lump sum and annuity transfers | (13) | (13) | |
Foreign currency translation and other | (2) | (1) | |
Projected benefit obligation at end of year | 95 | 131 | 149 |
Fair value of plan assets at beginning of year (estimated) | 13 | 15 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions and benefit payments | 7 | 9 | |
Plan participants’ contributions | 2 | 2 | |
Benefits paid, including lump sum and annuity transfers | (13) | (13) | |
Other, including foreign currency translation | (1) | 0 | |
Fair value of plan assets at end of year (estimated) | 8 | 13 | $ 15 |
Noncurrent assets | 0 | 0 | |
Current liabilities | (7) | (7) | |
Noncurrent liabilities | (80) | (111) | |
Funded status | (87) | $ (118) | |
Other Post-employment Benefits | U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions and benefit payments | $ 4 | ||
Discount rate | 5.40% | 2.60% | |
Ultimate | 4.50% | 4.50% | |
Year when rate will reach Ultimate | 2037 | 2037 | |
Other Post-employment Benefits | Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions and benefit payments | $ 3 | ||
Discount rate | 5.30% | 3% | |
Assumed for next year | 5.20% | 5.30% | |
Ultimate | 4% | 4% | |
Year when rate will reach Ultimate | 2040 | 2040 | |
Other Post-employment Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.30% | 2.60% | |
Assumed for next year | 4.50% | 4.50% | |
Ultimate | 4% | 4% | |
Other Post-employment Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.40% | 3% | |
Assumed for next year | 5.70% | 6.20% | |
Ultimate | 4.50% | 4.50% |
PENSION AND OTHER POST-EMPLOY_5
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS - Funded Status of Our Plans (Parenthetical) (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Pension plans with projected benefit obligations exceeding plan assets, projected benefit obligations | $ 2.1 | $ 2.9 |
Pension plans with projected benefit obligations exceeding plan assets, fair value of assets | 1.8 | 2.5 |
Pension plans with accumulated benefit obligations exceeding plan assets, accumulated benefit obligations | 2 | 2.8 |
Pension plans with accumulated benefit obligations exceeding plan assets, fair value of assets | $ 1.8 | $ 2.5 |
Pension | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates, benefit obligation | 5.30% | 2.90% |
Rate of compensation increase | 1% | 2% |
Pension | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates, benefit obligation | 5.40% | 3.10% |
Rate of compensation increase | 13% | 13% |
Pension | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates, benefit obligation | 5.40% | 2.90% |
Pension | U.S. | Salaried | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 2% | 13% |
Pension | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates, benefit obligation | 5.30% | 3.10% |
Pension | Canada | Salaried | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 3.25% | |
Pension | Canada | Hourly | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 3% | |
Pension | Canada | Minimum | Salaried | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 1% | |
Pension | Canada | Minimum | Hourly | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 2% | |
Pension | Canada | Maximum | Salaried | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 2.75% | |
Pension | Canada | Maximum | Hourly | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 2.75% | |
Other Post-employment Benefits | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates, benefit obligation | 5.30% | 2.60% |
Healthcare cost trend rate assumption for next year | 4.50% | 4.50% |
Ultimate healthcare cost trend rate | 4% | 4% |
Other Post-employment Benefits | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates, benefit obligation | 5.40% | 3% |
Healthcare cost trend rate assumption for next year | 5.70% | 6.20% |
Ultimate healthcare cost trend rate | 4.50% | 4.50% |
Other Post-employment Benefits | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates, benefit obligation | 5.40% | 2.60% |
Ultimate healthcare cost trend rate | 4.50% | 4.50% |
Year the cost ultimate health care cost rate is reached | 2037 | 2037 |
Other Post-employment Benefits | U.S. | Pre Medicare | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Healthcare cost trend rate assumption for next year | 5.70% | 6.20% |
Other Post-employment Benefits | U.S. | Health Reimbursement Account | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Healthcare cost trend rate assumption for next year | 4.50% | 4.50% |
Other Post-employment Benefits | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates, benefit obligation | 5.30% | 3% |
Healthcare cost trend rate assumption for next year | 5.20% | 5.30% |
Ultimate healthcare cost trend rate | 4% | 4% |
Year the cost ultimate health care cost rate is reached | 2040 | 2040 |
PENSION AND OTHER POST-EMPLOY_6
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS - Assets Within Our U.S. and Canadian Qualified and Registered Pension Plans (Details) - Qualified and Registered Plans | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 100% | 100% |
Cash and short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 3.60% | 12.10% |
Public equity investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 0.90% | 0% |
Fixed income investments, Corporate | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 42.70% | 40.50% |
Fixed income investments, Government | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 15.50% | 21.20% |
Fixed Income Investments, Repurchase Agreements | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Repurchase agreements | (0.60%) | (1.30%) |
Hedge funds and related investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 4.20% | 3.60% |
Private equity and related investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 34.50% | 24.90% |
Derivative instruments, net | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 0% | 0.10% |
Accrued liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Repurchase agreements | (0.80%) | (1.10%) |
PENSION AND OTHER POST-EMPLOY_7
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS - Net Pension Plan Assets, by Fair Value Hierarchy (Details) - Pension - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and short-term investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | $ 73 | $ 412 |
Cash and short-term investments | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 5 | 5 |
Public equity investments | Qualified and Registered Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 18 | 0 |
Fixed Income Investments, Corporate | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 874 | 1,380 |
Fixed Income Investments, Government | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 316 | 721 |
Fixed Income Investments, Repurchase Agreements | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | (12) | (43) |
Hedge funds and related investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 16 | 10 |
Private equity and related investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 34 | 104 |
Derivative instruments, net | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 5 |
Pension trust investments measured at fair value | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 1,319 | 2,589 |
Public equity investments | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 3 | 6 |
Canadian nonregistered plan assets measured at fair value | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 8 | 11 |
Pension plans defined benefit excluding hedge fund and private equity investments and accrued liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 1,327 | 2,600 |
Fair Value, Inputs, Level 1 | Cash and short-term investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 73 | 412 |
Fair Value, Inputs, Level 1 | Cash and short-term investments | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 5 | 5 |
Fair Value, Inputs, Level 1 | Public equity investments | Qualified and Registered Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 18 | 0 |
Fair Value, Inputs, Level 1 | Fixed Income Investments, Corporate | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Fixed Income Investments, Government | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Fixed Income Investments, Repurchase Agreements | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Hedge funds and related investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Private equity and related investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Derivative instruments, net | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 1 | Pension trust investments measured at fair value | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 91 | 412 |
Fair Value, Inputs, Level 1 | Public equity investments | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 3 | 6 |
Fair Value, Inputs, Level 1 | Canadian nonregistered plan assets measured at fair value | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 8 | 11 |
Fair Value, Inputs, Level 2 | Cash and short-term investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Cash and short-term investments | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Public equity investments | Qualified and Registered Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Fixed Income Investments, Corporate | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 874 | 1,380 |
Fair Value, Inputs, Level 2 | Fixed Income Investments, Government | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 316 | 721 |
Fair Value, Inputs, Level 2 | Fixed Income Investments, Repurchase Agreements | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | (12) | (43) |
Fair Value, Inputs, Level 2 | Hedge funds and related investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Private equity and related investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Derivative instruments, net | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 5 |
Fair Value, Inputs, Level 2 | Pension trust investments measured at fair value | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 1,178 | 2,063 |
Fair Value, Inputs, Level 2 | Public equity investments | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 2 | Canadian nonregistered plan assets measured at fair value | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Cash and short-term investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Cash and short-term investments | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Public equity investments | Qualified and Registered Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Fixed Income Investments, Corporate | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Fixed Income Investments, Government | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Fixed Income Investments, Repurchase Agreements | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Hedge funds and related investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 16 | 10 |
Fair Value, Inputs, Level 3 | Private equity and related investments | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 34 | 104 |
Fair Value, Inputs, Level 3 | Derivative instruments, net | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Pension trust investments measured at fair value | Qualified and Registered Plans | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 50 | 114 |
Fair Value, Inputs, Level 3 | Public equity investments | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | 0 | 0 |
Fair Value, Inputs, Level 3 | Canadian nonregistered plan assets measured at fair value | Non Registered Plans | Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of net plan assets | $ 0 | $ 0 |
PENSION AND OTHER POST-EMPLOY_8
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS - Net Pension Plan Assets, by Fair Value Hierarchy (Parenthetical) (Details) - Pension - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Future | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 1 | $ 5 |
Derivative, notional amount | 418 | 1,126 |
Derivative instruments, net | Net Asset Value | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 740 | 856 |
Accrued liabilities | U.S. | Qualified and Registered Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 14 | $ 38 |
PENSION AND OTHER POST-EMPLOY_9
PENSION AND OTHER POST-EMPLOYMENT 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, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year (estimated) | $ 114 | $ 72 |
Unrealized Gain (Loss) | 14 | 11 |
Purchases, Sales, Settlements, Net | (17) | (5) |
Transfers In (Out), Net | 33 | 36 |
Fair value of plan assets at end of year (estimated) | 50 | 114 |
Hedge funds and related investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year (estimated) | 10 | 4 |
Unrealized Gain (Loss) | 0 | 0 |
Purchases, Sales, Settlements, Net | (1) | (1) |
Transfers In (Out), Net | 7 | 7 |
Fair value of plan assets at end of year (estimated) | 16 | 10 |
Private equity and related investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets at beginning of year (estimated) | 104 | 68 |
Unrealized Gain (Loss) | 14 | 11 |
Purchases, Sales, Settlements, Net | (16) | (4) |
Transfers In (Out), Net | 40 | 29 |
Fair value of plan assets at end of year (estimated) | $ 34 | $ 104 |
PENSION AND OTHER POST-EMPLO_10
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS - Net Periodic Benefit Cost and Assumptions used to Estimate our Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 36 | $ 42 | $ 36 |
Interest cost | 106 | 98 | 139 |
Expected return on plan assets | (160) | (204) | (234) |
Amortization of actuarial loss | 93 | 115 | 122 |
Amortization of prior service cost (credit) | 3 | 3 | 3 |
Settlement charges | 205 | 0 | 253 |
Net periodic benefit cost | $ 283 | $ 54 | $ 319 |
Discount rate | 2.50% | ||
Expected return on assets | 5% | 6% | 6.50% |
Lump sum or installment distributions election | 60% | 60% | 60% |
Pension | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.90% | 3.10% | |
Rate of compensation increase | 2% | 2% | 2% |
Pension | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.10% | 3.40% | |
Rate of compensation increase | 13% | 13% | 13% |
Other Post-employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 3 | 3 | 4 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of actuarial loss | 5 | 5 | 4 |
Amortization of prior service cost (credit) | (1) | (1) | (1) |
Settlement charges | 0 | 0 | 0 |
Net periodic benefit cost | $ 7 | $ 7 | $ 7 |
Discount rate | 3% | ||
Other Post-employment Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.60% | 2.10% | |
Weighted health care cost trend rate assumed | 4.50% | 4.50% | 4.50% |
Other Post-employment Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3% | 2.40% | |
Weighted health care cost trend rate assumed | 6.20% | 6.80% | 7.30% |
PENSION AND OTHER POST-EMPLO_11
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS - Net Periodic Benefit Cost and Assumptions used to Estimate our Net Periodic Benefit Costs (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 2.50% | ||
Expected return on plan assets | 5% | 6% | 6.50% |
Pension | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 2.90% | 3.10% | |
Rate of compensation increase | 2% | 2% | 2% |
Pension | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 3.10% | 3.40% | |
Rate of compensation increase | 13% | 13% | 13% |
Other Post-employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 3% | ||
Other Post-employment Benefits | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 2.60% | 2.10% | |
Weighted health care cost trend rate assumed | 4.50% | 4.50% | 4.50% |
Other Post-employment Benefits | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 3% | 2.40% | |
Weighted health care cost trend rate assumed | 6.20% | 6.80% | 7.30% |
U.S. | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 2.90% | 2.50% | 3.40% |
U.S. | Pension | Salaried | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 2% | 2% | 2% |
U.S. | Pension | Salaried | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 13% | 13% | 13% |
U.S. | Other Post-employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 2.60% | 2.10% | 3% |
U.S. | Other Post-employment Benefits | Pre Medicare | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted health care cost trend rate assumed | 6.20% | ||
U.S. | Other Post-employment Benefits | Health Reimbursement Account | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Weighted health care cost trend rate assumed | 4.50% | ||
Canada | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 3.10% | 2.50% | 3.10% |
Canada | Pension | Salaried | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 3.25% | 3.25% | 3.25% |
Canada | Pension | Hourly | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of compensation increase | 3% | 3% | 3% |
Canada | Other Post-employment Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates, net periodic benefit cost | 3% | 2.40% | 3% |
Weighted health care cost trend rate assumed | 5.30% |
PENSION AND OTHER POST-EMPLO_12
PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS - Estimated Projected Benefit Payments for the Next 10 Years (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Future Benefit Payments 2023 | $ 164 |
Expected Future Benefit Payments 2024 | 145 |
Expected Future Benefit Payments 2025 | 145 |
Expected Future Benefit Payments 2026 | 150 |
Expected Future Benefit Payments 2027 | 152 |
Expected Future Benefit Payments 2028-2032 | 794 |
OPEB | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Future Benefit Payments 2023 | 11 |
Expected Future Benefit Payments 2024 | 11 |
Expected Future Benefit Payments 2025 | 10 |
Expected Future Benefit Payments 2026 | 9 |
Expected Future Benefit Payments 2027 | 9 |
Expected Future Benefit Payments 2028-2032 | $ 36 |
ACCRUED LIABILITIES - Accrued L
ACCRUED LIABILITIES - Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Accrued Liabilities Current [Abstract] | ||
Compensation and employee benefit costs | $ 201 | $ 225 |
Current portion of lease liabilities (Note 17) | 22 | 24 |
Customer rebates, volume discounts and deferred income | 132 | 164 |
Interest | 69 | 83 |
Taxes payable | 23 | 106 |
Other | 64 | 71 |
Total | $ 511 | $ 673 |
LINES OF CREDIT - Additional In
LINES OF CREDIT - Additional Information (Details) - USD ($) | 1 Months Ended | ||
Jan. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Line Of Credit Facility [Line Items] | |||
Line of credit, amount outstanding | $ 0 | $ 0 | |
Line of credit, remaining borrowing capacity | 1,500,000,000 | 1,500,000,000 | |
Compensating balance requirements for our letters of credit | $ 4,000,000 | $ 4,000,000 | |
Senior Unsecured Revolving Credit Facility | |||
Line Of Credit Facility [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 1,500,000,000 | ||
Line of credit expiration date | Jan. 31, 2025 | ||
Line of credit expiration period | 5 years |
LINES OF CREDIT - Letters of Cr
LINES OF CREDIT - Letters of Credit and Surety Bonds (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Short Term Debt Other Disclosures [Abstract] | ||
Letters of credit | $ 34 | $ 34 |
Surety bonds | $ 121 | $ 136 |
LONG-TERM DEBT, NET- Long-Term
LONG-TERM DEBT, NET- Long-Term Debt by Types and Interest Rates (Includes Current Portion) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | |||
Other | $ 1 | $ 1 | |
Total principal long-term debt | 5,093 | 5,125 | |
Add: business combination fair value adjustment | 4 | 8 | |
Less: unamortized discounts | (37) | (26) | |
Less: unamortized debt expense | (7) | (8) | |
Total | 5,053 | 5,099 | |
Portion due within one year | $ 978 | $ 0 | |
7.125 percent due in July 2023 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 7.125% | 7.125% | 7.125% |
Debt, maturity year | 2023 | 2023 | |
Senior Notes | $ 118 | $ 191 | |
5.207% installment note due 2023 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 5.207% | 5.207% | |
Debt, maturity year | 2023 | 2023 | |
Senior Notes | $ 860 | $ 860 | |
8.50% debentures due 2025 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 8.50% | 8.50% | 8.50% |
Debt, maturity year | 2025 | 2025 | |
Senior Notes | $ 139 | $ 300 | |
7.95% debentures due 2025 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 7.95% | 7.95% | 7.95% |
Debt, maturity year | 2025 | 2025 | |
Senior Notes | $ 71 | $ 136 | |
7.70% debentures due 2026 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 7.70% | 7.70% | |
Debt, maturity year | 2026 | 2026 | |
Senior Notes | $ 150 | $ 150 | |
7.35% debentures due 2026 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 7.35% | 7.35% | |
Debt, maturity year | 2026 | 2026 | |
Senior Notes | $ 62 | $ 62 | |
7.85 percent due in July 2026 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 7.85% | 7.85% | 7.85% |
Debt, maturity year | 2026 | 2026 | |
Senior Notes | $ 60 | $ 100 | |
6.95% debentures due 2027 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 6.95% | 6.95% | |
Debt, maturity year | 2027 | 2027 | |
Senior Notes | $ 300 | $ 300 | |
4.00% debentures due 2029 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 4% | 4% | |
Debt, maturity year | 2029 | 2029 | |
Senior Notes | $ 750 | $ 750 | |
4.00% notes due 2030 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 4% | 4% | |
Debt, maturity year | 2030 | 2030 | |
Senior Notes | $ 750 | $ 750 | |
7.375 percent due in March 2032 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 7.375% | 7.375% | 7.375% |
Debt, maturity year | 2032 | 2032 | |
Senior Notes | $ 657 | $ 1,250 | |
6.875% debentures due 2033 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 6.875% | 6.875% | |
Debt, maturity year | 2033 | 2033 | |
Senior Notes | $ 275 | $ 275 | |
3.375% debentures due 2033 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 3.375% | 3.375% | |
Debt, maturity year | 2033 | 2033 | |
Senior Notes | $ 450 | $ 0 | |
4.00% debentures due 2052 | |||
Debt Instrument [Line Items] | |||
Debt, interest rate | 4% | 4% | |
Debt, maturity year | 2052 | 2052 | |
Senior Notes | $ 450 | $ 0 |
LONG-TERM DEBT, NET - Additiona
LONG-TERM DEBT, NET - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2022 | Oct. 31, 2021 | May 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | May 31, 2020 | Mar. 31, 2020 | Mar. 31, 2022 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 900 | $ 900 | |||||||||||
Repayments of debt | 931 | ||||||||||||
Pretax charge related to early extinguishment of debt | 276 | $ 58 | $ 23 | $ 11 | |||||||||
Unamortized discounts, capitalized debt expense and business combination fair value adjustments | $ 40 | ||||||||||||
Early debt repayment includes pretax charges | 1,200 | ||||||||||||
After tax charge related to early debt repayment | 207 | ||||||||||||
3.375 percent due in March 2033 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 450 | $ 450 | |||||||||||
Debt instrument, interest rate, stated percentage | 3.375% | 3.375% | |||||||||||
Debt, maturity date | 2033-03 | ||||||||||||
Proceeds from debt, net of issuance costs | $ 444 | ||||||||||||
4.000 percent due in March 2052 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 450 | $ 450 | |||||||||||
Debt instrument, interest rate, stated percentage | 4% | 4% | |||||||||||
Debt, maturity date | 2052-03 | ||||||||||||
Proceeds from debt, net of issuance costs | $ 437 | ||||||||||||
7.375 percent due in March 2032 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 7.375% | 7.375% | 7.375% | 7.375% | |||||||||
Debt, maturity date | 2032-03 | ||||||||||||
Repayments of debt | $ 592 | ||||||||||||
8.50% debentures due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 8.50% | 8.50% | 8.50% | 8.50% | |||||||||
Debt, maturity date | 2025-01 | ||||||||||||
Repayments of debt | $ 161 | ||||||||||||
7.85 percent due in July 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 7.85% | 7.85% | 7.85% | 7.85% | |||||||||
Debt, maturity date | 2026-07 | ||||||||||||
Repayments of debt | $ 40 | ||||||||||||
7.125 percent due in July 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 7.125% | 7.125% | 7.125% | 7.125% | |||||||||
Debt, maturity date | 2023-07 | ||||||||||||
Repayments of debt | $ 73 | ||||||||||||
7.95% debentures due 2025 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 7.95% | 7.95% | 7.95% | 7.95% | |||||||||
Debt, maturity date | 2025-03 | ||||||||||||
Repayments of debt | $ 65 | ||||||||||||
9.00% debentures due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 9% | ||||||||||||
Repayments of debt | $ 150 | ||||||||||||
4.625% Notes Due in September 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 4.625% | 4.625% | |||||||||||
Repayments of debt | $ 500 | ||||||||||||
Debt, maturity date | 2023-09 | ||||||||||||
Variable Rate Term Loan Mature in July 2026 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, maturity date | 2026-07 | ||||||||||||
Repayments of debt | $ 225 | ||||||||||||
3.25% Notes Due in March 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 3.25% | 3.25% | |||||||||||
Repayments of debt | $ 325 | ||||||||||||
Debt, maturity date | 2023-03 | ||||||||||||
4.00 percent due in April 2030 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt issued | $ 750 | ||||||||||||
Debt instrument, interest rate, stated percentage | 4% | ||||||||||||
Debt, maturity date | 2030-04 | ||||||||||||
Proceeds from debt, net of issuance costs | $ 732 | ||||||||||||
4.70 percent due March 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument, interest rate, stated percentage | 4.70% | ||||||||||||
Debt, maturity date | 2021-03 | ||||||||||||
Repayments of debt | $ 569 |
LONG-TERM DEBT, NET - Amounts o
LONG-TERM DEBT, NET - Amounts of Long-Term Debt Due Annually for the Next Five Years and Thereafter (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 978 |
2024 | 0 |
2025 | 210 |
2026 | 272 |
2027 | 300 |
Thereafter | $ 3,333 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values and Carrying Values of Long-Term Debt (Details) - Fixed interest rate - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Long-term fixed rate debt (including current maturities), carrying value | $ 5,053 | $ 5,099 |
Long-term fixed rate debt (including current maturities), fair value (level 2) | $ 4,918 | $ 6,221 |
LEGAL PROCEEDINGS, COMMITMENT_3
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Changes in the Accrual for Environmental Remediation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accrual For Environmental Loss Contingencies Disclosure [Abstract] | ||
Accrual balance as of December 31, 2021 | $ 63 | |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Other Liabilities Noncurrent | Other Liabilities Noncurrent |
Charges and adjustments, net | $ 6 | |
Payments | (5) | |
Accrual balance as of December 31, 2022 | $ 64 |
LEGAL PROCEEDINGS, COMMITMENT_4
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Mar. 29, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | |
Loss Contingencies [Line Items] | |||
Litigation settlement, amount awarded to other party | $ 50,000,000 | ||
Percentage of costs incurred by plaintiffs | 5% | ||
Percentage of remaining costs incurred by plaintiffs | 95% | ||
Asset retirement obligations | $ 32,000,000 | $ 33,000,000 | |
Maximum | |||
Loss Contingencies [Line Items] | |||
Remediation costs for all identified sites may exceed accruals | $ 134,000,000 |
SHAREHOLDERS' INTEREST - Additi
SHAREHOLDERS' INTEREST - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Sep. 22, 2021 | |
Class Of Stock [Line Items] | ||||
Preferred shares, authorized | 7,000,000 | |||
Preferred shares, par value | $ 1 | |||
Preference shares, authorized | 40,000,000 | |||
Preference shares, par value | $ 1 | |||
Shares repurchased during period | 15,983,000 | 2,730,000 | 0 | |
Shares repurchased during period value | $ 543,000,000 | $ 100,000,000 | $ 0 | |
Unsettled share repurchases, shares | 223,548 | 0 | ||
Unsettled share repurchase value | $ 7,000,000 | |||
2021 Repurchase Program | ||||
Class Of Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 1,000,000,000 | |||
Shares repurchased during period | 15,983,097 | 1,949,496 | ||
Shares repurchased during period value | $ 550,000,000 | $ 74,000,000 | ||
Stock repurchase program, remaining authorized repurchase amount | $ 377,000,000 | |||
2019 Repurchase Program | ||||
Class Of Stock [Line Items] | ||||
Shares repurchased during period | 780,228 | |||
Shares repurchased during period value | $ 26,000,000 | |||
Preferred shares | ||||
Class Of Stock [Line Items] | ||||
Preferred shares, outstanding | 0 | 0 |
SHAREHOLDERS' INTEREST - Reconc
SHAREHOLDERS' INTEREST - Reconciliation of Our Common Share Activity (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class Of Stock [Line Items] | |||
Outstanding at beginning of year | 747,301 | 747,385 | 745,300 |
Repurchased | (15,983) | (2,730) | 0 |
Outstanding at end of year | 732,794 | 747,301 | 747,385 |
Stock options | |||
Class Of Stock [Line Items] | |||
Stock issued under share-based payment arrangement | 509 | 1,849 | 1,441 |
Vested restricted stock units | |||
Class Of Stock [Line Items] | |||
Stock issued under share-based payment arrangement | 676 | 635 | 574 |
Vested performance share units | |||
Class Of Stock [Line Items] | |||
Stock issued under share-based payment arrangement | 291 | 162 | 70 |
SHAREHOLDERS' INTEREST - Change
SHAREHOLDERS' INTEREST - Changes in Amounts Included in Our Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance at beginning of year | $ 10,767 | $ 8,731 | |
Translation adjustments | (52) | (11) | $ 18 |
Balance at end of year | 10,749 | 10,767 | 8,731 |
Pension | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance at beginning of year | (720) | (1,064) | (1,128) |
Other comprehensive income (loss) before reclassifications | 38 | 254 | (223) |
Amounts reclassified from accumulated other comprehensive income (loss) to earnings | 224 | 90 | 287 |
Total other comprehensive income | 262 | 344 | 64 |
Balance at end of year | (458) | (720) | (1,064) |
Other Post-Employment Benefits | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance at beginning of year | (2) | (12) | (12) |
Other comprehensive income (loss) before reclassifications | 19 | 6 | (3) |
Amounts reclassified from accumulated other comprehensive income (loss) to earnings | 3 | 4 | 3 |
Total other comprehensive income | 22 | 10 | 0 |
Balance at end of year | 20 | (2) | (12) |
Translation Adjustment And Other | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance at beginning of year | 243 | 254 | 236 |
Translation adjustments | (52) | (11) | 18 |
Total other comprehensive income | (52) | (11) | 18 |
Balance at end of year | 191 | 243 | 254 |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Balance at beginning of year | (479) | (822) | (904) |
Total other comprehensive income | 232 | 343 | 82 |
Balance at end of year | $ (247) | $ (479) | $ (822) |
SHAREHOLDERS' INTEREST - Chan_2
SHAREHOLDERS' INTEREST - Changes in Amounts Included in Our Accumulated Other Comprehensive Loss (Parenthetical) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Pension | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 205 | $ 0 | $ 253 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based compensation expense | $ 33 | $ 30 | $ 30 |
Number of shares available for future grants under the Plan | 22,000,000 | ||
Increase in number of common shares if all share-based awards were exercised or vested | 26,000,000 | ||
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options | $ 5 | $ 4 | $ 4 |
Unrecognized share-based compensation cost for non-vested equity-classified share-based compensation arrangements | $ 47 | ||
Unrecognized share-based compensation costs for non-vested equity-classified share-based compensation arrangements, weighted average period for recognition | 2 years 1 month 6 days | ||
Number of common shares to be issued for directors who elected common share payments subsequent to year-end | 565,000 | ||
Number of stock-equivalent units outstanding in deferred compensation accounts | 595,000 | 712,000 | 767,000 |
Stock options and stock appreciation rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Number of shares of shares an individual may receive in one year | 2,000,000 | ||
Restricted stock units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Weighted average grant-date fair value | $ 42.02 | $ 33.62 | $ 30.03 |
Total grant-date fair value vested | $ 22 | $ 25 | $ 19 |
Performance share units | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Weighted average grant-date fair value | $ 49.77 | $ 38.50 | $ 33.16 |
Total grant-date fair value vested | $ 12 | $ 8 | $ 3 |
Performance share units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Final number of shares awarded of each grant's target | 0% | ||
Performance share units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Final number of shares awarded of each grant's target | 150% | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Total intrinsic value of stock options exercised | $ 6 | $ 18 | $ 13 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Units | |||
Balance, beginning of year | 1,756 | ||
Granted | 626 | ||
Vested | (709) | ||
Forfeited | (100) | ||
Balance, end of year | 1,573 | 1,756 | |
Weighted Average Grant Date Fair Value | |||
Balance, beginning of year | $ 30.87 | ||
Granted | 42.02 | $ 33.62 | $ 30.03 |
Vested | 30.83 | ||
Forfeited | 37.17 | ||
Balance, end of year | $ 34.93 | $ 30.87 |
SHARE-BASED COMPENSATION - Sc_2
SHARE-BASED COMPENSATION - Schedule of Restricted Stock Units Activity (Parenthetical) (Details) shares in Thousands | Dec. 31, 2022 shares |
Restricted stock units | |
Stock Units | |
Nonvested performance share units that have met the requisite service period and will be released as identified in the grant terms | 185 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected dividends | 1.72% | 1.99% | 4.50% |
Risk-free rate minimum | 0.34% | 0.02% | 1.45% |
Risk-free rate maximum | 1.84% | 0.20% | 1.62% |
Volatility minimum | 26.27% | 32.87% | 20.02% |
Volatility maximum | 41.01% | 52.82% | 22.40% |
Weighted average grant-date fair value | $ 49.77 | $ 38.50 | $ 33.16 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Performance period | Feb. 10, 2022 | Feb. 11, 2021 | Feb. 13, 2020 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Performance period | Dec. 31, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
SHARE-BASED COMPENSATION - Sc_3
SHARE-BASED COMPENSATION - Schedule of Performance Share Units Activity (Details) - Performance share units - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Units | |||
Balance, beginning of year | 1,104 | ||
Granted | 306 | ||
Vested | (416) | ||
Forfeited | (52) | ||
Performance adjustment | 20 | ||
Balance, end of year | 962 | 1,104 | |
Weighted Average Grant Date Fair Value | |||
Balance, beginning of year | $ 33.56 | ||
Granted | 49.77 | $ 38.50 | $ 33.16 |
Vested | 29.66 | ||
Forfeited | 43.69 | ||
Performance adjustment | 29.66 | ||
Balance, end of year | $ 39.77 | $ 33.56 |
SHARE-BASED COMPENSATION - Sc_4
SHARE-BASED COMPENSATION - Schedule of Performance Share Units Activity (Parenthetical) (Details) shares in Thousands | Dec. 31, 2022 shares |
Performance share units | |
Stock Units | |
Nonvested performance share units that have met the requisite service period and will be released as identified in the grant terms | 116 |
SHARE-BASED COMPENSATION - Sc_5
SHARE-BASED COMPENSATION - Schedule of Stock Options Activity (Details) - Stock options $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Options | |
Balance, beginning of year | shares | 1,917 |
Exercised | shares | (510) |
Forfeited or expired | shares | (9) |
Balance, end of year | shares | 1,398 |
Exercisable, end of year | shares | 1,398 |
Weighted Average Exercise Price | |
Balance, beginning of year | $ / shares | $ 29.88 |
Exercised | $ / shares | 29.72 |
Forfeited or expired | $ / shares | 35.40 |
Balance, end of year | $ / shares | 29.91 |
Exercisable, end of year | $ / shares | $ 29.91 |
Weighted Average Remaining Contractual Term | |
Balance, end of year | 2 years 3 months 3 days |
Exercisable, end of year | 2 years 3 months 3 days |
Aggregate Intrinsic Value | |
Balance, end of year | $ | $ 4 |
Exercisable, end of year | $ | $ 4 |
LEASES - Additional Information
LEASES - Additional Information (Details) | Dec. 31, 2022 |
Minimum | |
Lessee Lease Description [Line Items] | |
Operating and finance leases remaining lease term | 1 year |
Maximum | |
Lessee Lease Description [Line Items] | |
Operating and finance leases remaining lease term | 25 years |
LEASES - Summary of Lease Expen
LEASES - Summary of Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Operating lease costs | $ 21 | $ 20 | $ 21 |
Financing lease costs | 7 | 9 | 12 |
Total lease costs | $ 28 | $ 29 | $ 33 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows for operating leases | $ 21 | $ 19 | $ 20 |
Financing cash flows for financing leases | 8 | 11 | 13 |
ROU assets obtained in exchange for new (modified) lease liabilities: | |||
Operating leases | 18 | 9 | 3 |
Financing leases | $ 3 | $ 4 | $ 4 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Operating lease ROU assets | $ 102 | $ 101 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Financing lease ROU assets | $ 9 | $ 13 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property and equipment, net (Note 7) | Property and equipment, net (Note 7) |
Total leased assets | $ 111 | $ 114 |
Current: | ||
Operating lease liabilities | $ 17 | $ 17 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities (Note 10) | Accrued liabilities (Note 10) |
Financing lease liabilities | $ 5 | $ 7 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities (Note 10) | Accrued liabilities (Note 10) |
Noncurrent: | ||
Operating lease liabilities | $ 91 | $ 90 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Financing lease liabilities | $ 5 | $ 8 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Total lease liabilities | $ 118 | $ 122 |
LEASES - Lease Term and Discoun
LEASES - Lease Term and Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted Average Remaining Lease Term (years) | ||
Operating lease, weighted average remaining lease term | 8 years | 8 years |
Finance lease, weighted average remaining lease term | 3 years | 2 years |
Weighted Average Discount Rate | ||
Operating lease, weighted average discount rate | 3.90% | 4.10% |
Finance lease, weighted average discount rate | 2.90% | 2.90% |
LEASES - Maturities of Lease Li
LEASES - Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Operating Lease | |
Operating lease liability payments of 2023 | $ 21 |
Operating lease liability payments of 2024 | 15 |
Operating lease liability payments of 2025 | 14 |
Operating lease liability payments of 2026 | 14 |
Operating lease liability payments of 2027 | 14 |
Operating lease liability payments thereafter | 48 |
Operating lease total payments due | 126 |
Operating lease interest | (18) |
Operating lease liability present value | 108 |
Finance Leases | |
Finance lease liability payments of 2023 | 5 |
Finance lease liability payments of 2024 | 2 |
Finance lease liability payments of 2025 | 2 |
Finance lease liability payments of 2026 | 1 |
Finance lease liability payments of 2027 | 0 |
Finance lease liability payments thereafter | 0 |
Finance lease total payments due | 10 |
Finance lease interest | 0 |
Finance lease liability present value | $ 10 |
PRODUCT REMEDIATION RECOVERIE_2
PRODUCT REMEDIATION RECOVERIES, NET - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Product Liability Contingency [Line Items] | |||
Insurance recoveries | $ 0 | $ 13,000,000 | $ 0 |
Wood Products | |||
Product Liability Contingency [Line Items] | |||
Insurance recoveries | $ 0 | $ 37,000,000 | $ 8,000,000 |
OTHER OPERATING COSTS, NET - In
OTHER OPERATING COSTS, NET - Income and Expense Items Included in Other Operating Costs, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income [Abstract] | ||||
Foreign exchange losses (gains), net | $ (10) | $ (5) | $ 7 | |
Gain on disposition of nonstrategic assets | (4) | (3) | (4) | |
Insurance recovery | 0 | (13) | 0 | |
Litigation expense, net | 14 | 7 | 11 | |
Research and development expenses | 6 | 5 | 5 | |
Restructuring, Impairments And Other Charges | 11 | 0 | 1 | |
Timber casualty loss | $ 80 | 0 | 0 | 80 |
Other, net | 32 | 42 | 35 | |
Total other operating costs, net | $ 49 | $ 33 | $ 135 |
OTHER OPERATING COSTS, NET - Ad
OTHER OPERATING COSTS, NET - Additional Information (Details) a in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2020 a | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Sep. 30, 2020 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Component Of Other Operating Costs [Line Items] | |||||||
Insurance recoveries | $ 0 | $ 13,000,000 | $ 0 | ||||
Timber casualty loss | $ 80,000,000 | 0 | 0 | 80,000,000 | |||
Impairment Of Long Lived Assets To Be Disposed Of | $ 10,000,000 | ||||||
Oregon | |||||||
Component Of Other Operating Costs [Line Items] | |||||||
Number of acres of timberlands approximately affected by forest fires | a | 125 | ||||||
Wood Products | |||||||
Component Of Other Operating Costs [Line Items] | |||||||
Insurance recoveries | $ 0 | $ 37,000,000 | $ 8,000,000 | ||||
Wood Products | Other Operating Costs, Net | |||||||
Component Of Other Operating Costs [Line Items] | |||||||
Insurance recoveries | $ 13,000,000 |
INCOME TAXES - Domestic and For
INCOME TAXES - Domestic and Foreign Earnings (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments [Abstract] | |||
Domestic earnings | $ 1,982 | $ 2,499 | $ 723 |
Foreign earnings | 323 | 817 | 259 |
Earnings before income taxes | $ 2,305 | $ 3,316 | $ 982 |
INCOME TAXES - Provision (Benef
INCOME TAXES - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 252 | $ 378 | $ 147 |
State | 45 | 74 | 30 |
Foreign | 158 | 243 | 64 |
Total current | 455 | 695 | 241 |
Deferred: | |||
Federal | 28 | 27 | (66) |
State | 6 | (2) | (1) |
Foreign | (64) | (11) | 11 |
Total deferred | (30) | 14 | (56) |
Total income tax provision | $ 425 | $ 709 | $ 185 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Applicable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Expense Benefit Continuing Operations Income Tax Reconciliation [Abstract] | |||
U.S. federal statutory income tax | $ 484 | $ 696 | $ 207 |
State income taxes, net of federal tax benefit | 41 | 57 | 23 |
REIT income not subject to federal income tax | (125) | (102) | (51) |
Return to provision adjustment | 0 | 0 | (3) |
Foreign taxes | 27 | 62 | 19 |
Other, net | (2) | (4) | (10) |
Total income tax provision | $ 425 | $ 709 | $ 185 |
Effective income tax rate | 18.40% | 21.40% | 18.80% |
INCOME TAXES - Balance Sheet Cl
INCOME TAXES - Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||
Net noncurrent deferred tax asset | $ 8 | $ 17 |
Net noncurrent deferred tax liability | (96) | (46) |
Net deferred tax liability | $ (88) | $ (29) |
INCOME TAXES - Items Included i
INCOME TAXES - Items Included in Our Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Components Of Deferred Tax Assets And Liabilities [Abstract] | ||
Pension and post-employment benefits | $ 75 | $ 96 |
State tax credits | 42 | 42 |
Depletion | 14 | 13 |
Environmental Reserves | 13 | 14 |
Incentive compensation | 17 | 19 |
Intercompany land sales | 16 | 15 |
Workers compensation | 14 | 17 |
Minerals | 11 | 10 |
Other reserves | 10 | 14 |
Other | 57 | 60 |
Gross deferred tax assets | 269 | 300 |
Valuation allowance | (54) | (50) |
Net deferred tax assets | 215 | 250 |
Property, plant and equipment | (284) | (258) |
Other | (19) | (21) |
Net deferred tax liabilities | (303) | (279) |
Net deferred tax liability | $ (88) | $ (29) |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Valuation allowance | $ 54 | $ 50 |
Federal, state and foreign | ||
Net operating loss carryforwards | 469 | |
Federal - U.S. REIT | ||
Credit carryforwards | $ 9 | |
Tax credit carry forward, expiration beginning year | 2027 | |
Tax credit carry forward, expiration ending year | 2032 | |
Federal - U.S. REIT | With expiration | ||
Net operating loss carryforwards | $ 205 | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2034 | |
Federal - U.S. REIT | Without expiration | ||
Net operating loss carryforwards | $ 168 | |
Federal - U.S. REIT | Minimum | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2034 | |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2027 | |
Federal - U.S. REIT | Maximum | ||
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2036 | |
Tax Credit Carryforward, Expiration Date | Dec. 31, 2032 | |
State and Local Jurisdiction [Member] | ||
Net operating loss carryforwards | $ 96 | |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2028 | |
Credit carryforwards | $ 53 | |
State and Local Jurisdiction [Member] | With expiration | ||
Credit carryforwards | $ 4 | |
Tax credit carry forward, expiration beginning year | 2026 | |
Tax credit carry forward, expiration ending year | 2036 | |
State and Local Jurisdiction [Member] | Without expiration | ||
Credit carryforwards | $ 49 | |
State and Local Jurisdiction [Member] | Minimum | ||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2026 | |
State and Local Jurisdiction [Member] | Maximum | ||
Tax Credit Carryforward, Expiration Date | Dec. 31, 2036 | |
Foreign Tax Authority | ||
Net operating loss carryforwards | $ 0 |
GEOGRAPHIC AREAS - Sales by Geo
GEOGRAPHIC AREAS - Sales by Geographic Area (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | $ 10,184 | $ 10,201 | $ 7,532 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | 8,709 | 8,709 | 6,549 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | 773 | 778 | 528 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | 524 | 477 | 326 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | 82 | 123 | 83 |
Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | 45 | 52 | 27 |
Other foreign countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | 51 | 62 | 19 |
Export sales from the U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | 770 | 730 | 515 |
Export sales from the U.S. | U.S. | Japanese Customers | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | 471 | 396 | 292 |
Export sales from the U.S. | U.S. | Canada Customers | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | 143 | 128 | 109 |
Export sales from the U.S. | U.S. | Chinese Customers | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | 80 | 119 | 79 |
Export sales from the U.S. | U.S. | Korea Customers | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | 40 | 51 | 25 |
Export sales from the U.S. | U.S. | Other Countries Customers | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales (Note 3) | $ 36 | $ 36 | $ 10 |
GEOGRAPHIC AREAS - Long-Lived A
GEOGRAPHIC AREAS - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 14,268 | $ 14,038 |
U.S. | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 13,979 | 13,731 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 289 | $ 307 |
RESTRICTED CASH - Reconciliatio
RESTRICTED CASH - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 1,581 | $ 1,879 | ||
Restricted cash included in other assets | $ 0 | $ 120 | ||
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | ||
Total cash, cash equivalents and restricted cash | $ 1,581 | $ 1,999 | $ 495 | $ 139 |