Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 27, 2020 | |
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-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 746,206,000 | |
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 Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $1.25 per share | |
Security Exchange Name | NYSE |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales (Note 3) | $ 1,728 | $ 1,643 |
Costs of sales | 1,382 | 1,322 |
Gross margin | 346 | 321 |
Selling expenses | 22 | 21 |
General and administrative expenses | 74 | 89 |
Other operating costs, net (Note 15) | 10 | 37 |
Operating income | 240 | 174 |
Non-operating pension and other postretirement benefit costs (Note 7) | (9) | (470) |
Interest income and other | 1 | 10 |
Interest expense, net of capitalized interest | (85) | (107) |
Earnings (loss) before income taxes | 147 | (393) |
Income taxes (Note 16) | 3 | 104 |
Net earnings (loss) | $ 150 | $ (289) |
Earnings (loss) per share, basic and diluted (Note 4) | $ 0.20 | $ (0.39) |
Weighted average shares outstanding (in thousands) (Note 4): | ||
Basic | 746,534 | 746,603 |
Diluted | 747,155 | 746,603 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net earnings (loss) | $ 150 | $ (289) |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (42) | 14 |
Changes in unamortized actuarial loss, net of tax expense of $16 and $111 | 44 | 344 |
Changes in unamortized net prior service credit, net of tax expense of $0 and $0 | 1 | 0 |
Total other comprehensive income | 3 | 358 |
Total comprehensive income | $ 153 | $ 69 |
CONSOLIDATED STATEMENT OF COM_2
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Changes in unamortized actuarial loss, tax expense (benefit) | $ 16 | $ 111 |
Changes in unamortized net prior service credit, tax benefit (expense) | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,458 | $ 139 |
Receivables, net | 390 | 309 |
Receivables for taxes | 24 | 98 |
Inventories (Note 5) | 480 | 416 |
Assets held for sale | 0 | 140 |
Prepaid expenses and other current assets | 141 | 147 |
Current restricted financial investments held by variable interest entities (Note 6) | 0 | 362 |
Total current assets | 2,493 | 1,611 |
Property and equipment, less accumulated depreciation of $3,460 and $3,477 | 1,911 | 1,969 |
Construction in progress | 153 | 130 |
Timber and timberlands at cost, less depletion | 11,847 | 11,929 |
Minerals and mineral rights, less depletion | 278 | 281 |
Deferred tax assets | 147 | 72 |
Other assets | 399 | 414 |
Total assets | 17,228 | 16,406 |
Current liabilities: | ||
Current maturities of long-term debt (Note 9) | 577 | 0 |
Borrowings on line of credit (Note 9) | 550 | 230 |
Accounts payable | 241 | 246 |
Accrued liabilities (Note 8) | 448 | 530 |
Total current liabilities | 1,816 | 1,006 |
Long-term debt, net (Note 9) | 6,299 | 6,147 |
Deferred tax liabilities | 10 | 6 |
Deferred pension and other postretirement benefits (Note 7) | 669 | 693 |
Other liabilities | 352 | 377 |
Total liabilities | 9,146 | 8,229 |
Commitments and contingencies (Note 11) | ||
Equity: | ||
Common shares: $1.25 par value; authorized 1,360 million shares; issued and outstanding: 746,206 thousand shares at March 31, 2020 and 745,300 thousand shares at December 31, 2019 | 933 | 932 |
Other capital | 8,159 | 8,152 |
Accumulated deficit | (109) | (3) |
Accumulated other comprehensive loss (Note 12) | (901) | (904) |
Total equity | 8,082 | 8,177 |
Total liabilities and equity | $ 17,228 | $ 16,406 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Property and equipment, accumulated depreciation | $ 3,460 | $ 3,477 |
Common shares, par value | $ 1.25 | $ 1.25 |
Common shares, authorized | 1,360,000,000 | 1,360,000,000 |
Common shares, issued | 746,206,000 | 745,300,000 |
Common shares, outstanding | 746,206,000 | 745,300,000 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operations: | ||
Net earnings (loss) | $ 150 | $ (289) |
Noncash charges (credits) to earnings (loss): | ||
Depreciation, depletion and amortization | 123 | 123 |
Basis of real estate sold | 62 | 48 |
Deferred income taxes, net | (82) | (123) |
Pension and other postretirement benefits (Note 7) | 19 | 478 |
Share-based compensation expense (Note 13) | 7 | 9 |
Change in: | ||
Receivables, net | (82) | (77) |
Receivables and payables for taxes | 79 | (31) |
Inventories | (72) | (60) |
Prepaid expenses and other current assets | (2) | (5) |
Accounts payable and accrued liabilities | (91) | (82) |
Pension and postretirement benefit contributions and payments | (10) | (14) |
Other | (15) | 9 |
Net cash from operations | 86 | (14) |
Cash flows from investing activities: | ||
Capital expenditures for property and equipment | (47) | (41) |
Capital expenditures for timberlands reforestation | (21) | (18) |
Proceeds from note receivable held by variable interest entities (Note 6) | 362 | 253 |
Proceeds from sale of Montana timberlands (Note 14) | 145 | 0 |
Other | 2 | 18 |
Net cash from investing activities | 441 | 212 |
Cash flows from financing activities: | ||
Cash dividends on common shares | (254) | (254) |
Net proceeds from issuance of long-term debt (Note 9) | 732 | 739 |
Payments on long-term debt (Note 9) | 0 | (512) |
Proceeds from borrowings on line of credit (Note 9) | 550 | 245 |
Payments on line of credit (Note 9) | (230) | (425) |
Proceeds from exercise of stock options | 6 | 2 |
Repurchases of common shares (Note 4) | 0 | (60) |
Other | (12) | (8) |
Net cash from financing activities | 792 | (273) |
Net change in cash and cash equivalents | 1,319 | (75) |
Cash and cash equivalents at beginning of period | 139 | 334 |
Cash and cash equivalents at end of period | 1,458 | 259 |
Cash paid (received) during the period for: | ||
Interest, net of amount capitalized of $1 and $1 | 108 | 127 |
Income taxes, net of refunds | $ 0 | $ 50 |
CONSOLIDATED STATEMENT OF CAS_2
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Cash Flows [Abstract] | ||
Interest, amount capitalized | $ 1 | $ 1 |
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 period at Dec. 31, 2018 | $ 933 | $ 8,172 | $ 1,093 | $ (1,152) | |
Issued for exercise of stock options and vested restricted stock units | 1 | 2 | |||
Repurchases of common shares (Note 4) | (3) | (57) | |||
Shared-based compensation | 9 | ||||
Other transactions, net | (5) | ||||
Net earnings (loss) | $ (289) | (289) | |||
Dividends on common shares | (254) | ||||
Adjustments related to accounting pronouncements and other | (7) | ||||
Other comprehensive income | 358 | ||||
Balance at end of period at Mar. 31, 2019 | $ 8,801 | 931 | 8,121 | 543 | (794) |
Dividends paid per common share | $ 0.34 | ||||
Balance at beginning of period at Dec. 31, 2019 | $ 8,177 | 932 | 8,152 | (3) | (904) |
Issued for exercise of stock options and vested restricted stock units | 1 | 6 | |||
Repurchases of common shares (Note 4) | 0 | 0 | |||
Shared-based compensation | 7 | ||||
Other transactions, net | (6) | ||||
Net earnings (loss) | 150 | 150 | |||
Dividends on common shares | (256) | ||||
Adjustments related to accounting pronouncements and other | 0 | ||||
Other comprehensive income | 3 | ||||
Balance at end of period at Mar. 31, 2020 | $ 8,082 | $ 933 | $ 8,159 | $ (109) | $ (901) |
Dividends paid per common share | $ 0.34 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | NOTE 1: BASIS OF PRESENTATION Our consolidated financial statements provide an overall view of our results of operations, financial condition and cash flows. They include our accounts and the accounts of entities we control, including majority-owned domestic and foreign subsidiaries. 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,” “we,” “the company” and “our” refer to the consolidated company. The accompanying unaudited Consolidated Financial Statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Except as otherwise disclosed in these Notes to Consolidated Financial Statements, such adjustments are of a normal, recurring nature. The Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. Certain information and footnote disclosures normally included in our annual Consolidated Financial Statements have been condensed or omitted. These quarterly Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2019. Results of operations for interim periods should not necessarily be regarded as indicative of the results that may be expected for the full year. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | NOTE 2: BUSINESS SEGMENTS We are principally engaged in growing and harvesting timber; manufacturing, distributing, and selling products made from trees; maximizing the value of every acre we own through the sale of higher and better use (HBU) properties; and monetizing the value of surface and subsurface assets through leases and royalties. Our business segments are categorized based primarily on products and services which include: ● 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, oil and gas production, wind and solar) and ● Wood Products – Structural lumber, oriented strand board, engineered wood products and building materials distribution. A reconciliation of our business segment information to the respective information in the Consolidated Statement of Operations is as follows: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Sales to unaffiliated customers: Timberlands $ 381 $ 431 Real Estate & ENR 112 118 Wood Products 1,235 1,094 1,728 1,643 Intersegment sales: Timberlands 122 125 Total sales 1,850 1,768 Intersegment eliminations (122 ) (125 ) Total $ 1,728 $ 1,643 Net contribution (charge) to earnings: Timberlands $ 105 $ 120 Real Estate & ENR 36 55 Wood Products 134 69 275 244 Unallocated items (1) (43 ) (530 ) Net contribution (charge) to earnings 232 (286 ) Interest expense, net of capitalized interest (85 ) (107 ) Earnings (loss) before income taxes 147 (393 ) Income taxes 3 104 Net earnings (loss) $ 150 $ (289 ) (1) 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 postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
REVENUE RECOGNITION | NOTE 3: REVENUE RECOGNITION A reconciliation of revenue recognized by our major products: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Net sales to unaffiliated customers: Timberlands segment Delivered logs: West Domestic sales $ 87 $ 101 Export grade sales 90 104 Subtotal West 177 205 South 150 159 North (1) 17 29 Subtotal delivered logs sales 344 393 Stumpage and pay-as-cut timber 5 9 Recreational and other lease revenue 15 15 Other (2) 17 14 Net sales attributable to Timberlands segment 381 431 Real Estate & ENR segment Real estate 95 96 Energy and natural resources 17 22 Net sales attributable to Real Estate & ENR segment 112 118 Wood Products segment Structural lumber 508 444 Oriented strand board 190 160 Engineered solid section 127 116 Engineered I-joists 78 70 Softwood plywood 39 44 Medium density fiberboard 44 38 Complementary building products 153 137 Other (3) 96 85 Net sales attributable to Wood Products segment 1,235 1,094 Total net sales $ 1,728 $ 1,643 (1) In November 2019, we sold our Michigan timberlands. (2) Other Timberlands sales include sales of seeds and seedlings from our nursery operations as well as wood chips. (3) Other Wood Products sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations. |
NET EARNINGS (LOSS) PER SHARE A
NET EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
NET EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES | NOTE 4: NET EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES Our basic and diluted earnings (loss) per share were: ● $0.20 during first quarter 2020 and ● $(0.39) during first quarter 2019. Basic earnings (loss) per share is net earnings (loss) 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 (loss) per share is net earnings (loss) divided by the sum of the weighted average number of our outstanding common shares and the effect of our outstanding dilutive potential common shares. QUARTER ENDED SHARES IN THOUSANDS MARCH 2020 MARCH 2019 Weighted average common shares outstanding – basic 746,534 746,603 Dilutive potential common shares: Stock options 338 — Restricted stock units 283 — Total effect of outstanding dilutive potential common shares 621 — Weighted average common shares outstanding – dilutive 747,155 746,603 We use the treasury stock method to calculate the dilutive effect of our outstanding stock options, restricted stock units and performance share units. Potential Shares Not Included in the Computation of Diluted Earnings (Loss) per Share The following shares were not included in the computation of diluted earnings (loss) 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. QUARTER ENDED SHARES IN THOUSANDS MARCH 2020 MARCH 2019 Stock options 2,292 2,862 Restricted stock units — 383 Performance share units 1,390 1,356 Share Repurchase Program On February 7, 2019, our board of directors approved and announced a new share repurchase program (the 2019 Repurchase Program) under which we are authorized to repurchase up to $500 million of outstanding shares. Concurrently, the board terminated the remaining repurchase authorization under the share repurchase program approved by the board in November 2015. During first quarter 2020, we did not repurchase shares. During first quarter 2019, we repurchased over 2.3 million common shares for approximately $60 million under the 2019 Repurchase Program. As of March 31, 2020, we had remaining authorization of approximately $440 million for future share repurchases. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5: INVENTORIES Inventories include raw materials, work-in-process, finished goods, as well as materials and supplies. DOLLAR AMOUNTS IN MILLIONS MARCH 31, 2020 DECEMBER 31, 2019 LIFO inventories: Logs $ 20 $ 19 Lumber, plywood, panels and fiberboard 89 82 Other products 14 10 FIFO or moving average cost inventories: Logs 69 28 Lumber, plywood, panels, fiberboard and engineered wood products 92 84 Other products 99 98 Materials and supplies 97 95 Total $ 480 $ 416 LIFO – the last-in, first-out method – applies to major inventory products held at our U.S. locations. The FIFO – the first-in, first-out method – or moving average cost methods apply to the balance of our U.S. raw material and product inventories, all material and supply inventories and all foreign inventories. If we used FIFO for all LIFO inventories, our stated inventories would have been higher by $76 million as of March 31, 2020 and December 31, 2019. |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
VARIABLE INTEREST ENTITIES | NOTE 6: 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 consist ed 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. During first quarter 2020, we received $362 million in proceeds from our final buyer-sponsored SPE at maturity. The corresponding $302 million in liabilities of this SPE was paid in third quarter 2019. During first quarter 2019, we received $253 million in proceeds from a buyer-sponsored SPE at maturity. The corresponding $209 million in liabilities of this SPE was paid in fourth quarter 2018. There are no further SPEs remaining as of March 31, 2020. |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2020 | |
Pension And Other Postretirement Benefit Expense [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | NOTE 7: PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS The components of net periodic benefit cost are: PENSION QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Service cost $ 10 $ 8 Interest cost 35 43 Expected return on plan assets (59 ) (62 ) Amortization of actuarial loss 30 30 Amortization of prior service cost 1 1 Settlement charge — 455 Total net periodic benefit cost - pension $ 17 $ 475 OTHER POSTRETIREMENT BENEFITS QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Interest cost $ 1 $ 2 Amortization of actuarial loss 1 2 Amortization of prior service credit — (1 ) Total net periodic benefit cost - other postretirement benefits $ 2 $ 3 For the periods presented, service cost is included in “Costs of sales,” “Selling expenses,” and “General and administrative expenses” with the remaining components included in “Non-operating pension and other postretirement benefit costs” in our Consolidated Statement of Operations . Actions to Reduce Pension Plan Obligations As a part of our continued efforts to reduce pension plan obligations, we transferred approximately $1.5 billion of U.S. qualified pension plan assets and liabilities to an insurance company through the purchase of a group annuity contract in January 2019. In connection with this transaction, we recorded a preliminary noncash pretax settlement charge of $455 million during first quarter 2019, accelerating the recognition of previously unrecognized losses in “Accumulated other comprehensive loss”, that would have been recognized in subsequent periods. In second quarter 2019, we finalized the prior year-end fair value of pension plan assets and obligations, which reduced the settlement charge by $6 million for a final settlement charge of $449 million. Fair Value of Pension Plan Assets and Obligations In our year-end reporting process, we estimate the fair value of pension plan assets based upon the information available at that time. For certain assets, primarily private equity funds, the information available consists of net asset values as of an interim date, cash flows between the interim date and the end of the year and market events. We update the year-end estimated fair value of pension plan assets in the second quarter of each year to incorporate final net asset values reflected in financial statements received after we have filed our Annual Report on Form 10-K. At that time, we typically also incorporate adjusted census data and record an adjustment to year-to-date non-operating pension and other postretirement benefit costs to reflect the updated information. Historically, these adjustments have not been material. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities Current [Abstract] | |
ACCRUED LIABILITIES | NOTE 8: ACCRUED LIABILITIES Accrued liabilities were comprised of the following: DOLLAR AMOUNTS IN MILLIONS MARCH 31, 2020 DECEMBER 31, 2019 Compensation and employee benefit costs $ 143 $ 188 Current portion of lease liabilities 32 33 Customer rebates, volume discounts and deferred income 73 105 Interest 74 98 Taxes payable 32 24 Other 94 82 Total $ 448 $ 530 |
LONG-TERM DEBT AND LINE OF CRED
LONG-TERM DEBT AND LINE OF CREDIT | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND LINE OF CREDIT | NOTE 9: In March 2020, we issued $750 million of 4.00 percent notes due in April 2030 In April 2020, we notified holders of our outstanding 4.70 percent notes due in March 2021 In February 2019, we issued $750 million of 4.00 percent notes due in November 2029 October 2019 Consolidated Statement of Operations in first quarter 2019 for make-whole premiums, unamortized debt issuance costs and unamortized debt discounts in connection with the early extinguishment of the $500 million note. In January 2020, we refinanced and extended our $1.5 billion five-year January 2025 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 10: FAIR VALUE OF FINANCIAL INSTRUMENTS The estimated fair values and carrying values of our long-term debt and line of credit consisted of the following: MARCH 31, 2020 DECEMBER 31, 2019 DOLLAR AMOUNTS IN MILLIONS CARRYING VALUE FAIR VALUE (LEVEL 2) CARRYING VALUE FAIR VALUE (LEVEL 2) Long-term debt (including current maturities) and line of credit: Fixed rate $ 6,651 $ 7,233 $ 5,922 $ 6,986 Variable rate 775 775 455 455 Total debt $ 7,426 $ 8,008 $ 6,377 $ 7,441 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 variable rate long-term debt and line of credit instruments have net carrying values that approximate their fair values with only insignificant differences. The inputs to these valuations are based on market data obtained from independent sources or information derived principally from observable market data. The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at the measurement date. Fair Value of Other Financial Instruments We believe that our other financial instruments, including cash and cash equivalents, short-term investments, mutual fund investments held in grantor trusts, and 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 | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES | NOTE 11: LEGAL PROCEEDINGS, COMMITMENTS AND 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 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. As of March 31, 2020, our total accrual for future estimated remediation costs on active Superfund sites and other sites for which we are potentially responsible was approximately $61 million. These amounts are recorded in "Accrued liabilities" and "Other liabilities" on our Consolidated Balance Sheet . 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 March 31, 2020, we had an asset retirement obligation reserve of $32 million. These obligations are recorded in "Accrued liabilities" and "Other liabilities" on our Consolidated Balance Sheet . |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | NOTE 12: ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in amounts included in our accumulated other comprehensive loss by component are: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Pension (1) Balance at beginning of period $ (1,128 ) $ (1,343 ) Other comprehensive income (loss) before reclassifications 20 (24 ) Amounts reclassified from accumulated other comprehensive loss to earnings (2) 24 367 Total other comprehensive income 44 343 Balance at end of period $ (1,084 ) $ (1,000 ) Other Postretirement Benefits (1) Balance at beginning of period $ (12 ) $ (19 ) Amounts reclassified from accumulated other comprehensive loss to earnings (2) 1 1 Total other comprehensive income 1 1 Balance at end of period $ (11 ) $ (18 ) Translation Adjustments and Other Balance at beginning of period $ 236 $ 210 Translation adjustments (42 ) 14 Total other comprehensive income (loss) (42 ) 14 Balance at end of period 194 224 Accumulated other comprehensive loss, end of period $ (901 ) $ (794 ) (1) Amounts presented are net of tax. (2) Amounts of actuarial loss and prior service (cost) credit are components of net periodic benefit cost (credit). See Note 7: Pension and Other Postretirement Benefit Plans . |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
Share Based Compensation [Abstract] | |
SHARE-BASED COMPENSATION | NOTE 13: SHARE-BASED COMPENSATION Share-based compensation activity during quarter-to-date 2020 included the following: SHARES IN THOUSANDS GRANTED VESTED Restricted stock units (RSUs) 804 693 Performance share units (PSUs) 377 91 A total of 906 thousand shares of common stock were issued as a result of RSU vestings, PSU vestings and stock option exercises. Restricted Stock Units The weighted average fair value of the RSUs granted in 2020 was $30.03. The vesting provisions for RSUs granted in 2020 were consistent with prior year grants. Performance Share Units The weighted average grant date fair value of PSUs granted in 2020 was $33.16. The final number of shares granted in 2020 will range from 0 percent to 150 percent of each grant's target, depending upon actual company performance compared against an industry peer group. For prior year grants, company performance is measured against an industry peer group and the S&P 500. Beginning with PSUs granted in 2020, PSUs will vest at a maximum of 100 percent of target value in the event of negative absolute company total shareholder return. Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted in 2020 PERFORMANCE SHARE UNITS Performance period 2/13/2020 – 12/31/2022 Valuation date average stock price (1) $30.03 Expected dividends 4.50% Risk-free rate 1.45% - 1.62% Expected volatility 20.02% – 22.40% (1) Calculated as an average of the high and low prices on grant date. |
DIVESTITURE
DIVESTITURE | 3 Months Ended |
Mar. 31, 2020 | |
Discontinued Operations And Disposal Groups [Abstract] | |
DIVESTITURE | NOTE 14: DIVESTITURE On December 17, 2019, we announced an agreement to sell 630,000 acres of Montana timberlands, which was part of our Timberlands business segment. On March 26, 2020, we completed the sale to Southern Pine Plantations for $145 million in cash proceeds, which is net of purchase price adjustments and closing costs. Due to the impairment recorded during fourth quarter 2019, no material gain or loss was recorded as a result of this sale. The 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. |
OTHER OPERATING COSTS, NET
OTHER OPERATING COSTS, NET | 3 Months Ended |
Mar. 31, 2020 | |
Other Income [Abstract] | |
OTHER OPERATING COSTS, NET | NOTE 15: Other operating costs, net were comprised of the following: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Foreign exchange losses, net 8 3 Litigation expense (income), net (4 ) 25 Research and development expenses 1 1 Other, net 5 8 Total other operating costs, net $ 10 $ 37 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 16: INCOME TAXES As a real estate investment trust (REIT), we generally are not subject to federal corporate income taxes on REIT taxable income that is distributed to shareholders. We are required to pay corporate income taxes on earnings of our wholly-owned Taxable REIT Subsidiaries (TRSs), which includes our Wood Products segment earnings and portions of our Timberlands and Real Estate & ENR segments' earnings. The quarterly provision for income taxes is based on our current estimate of the annual effective tax rate and is adjusted for discrete taxable events that may occur during the quarter. Our 2020 estimated annual effective tax rate, excluding discrete items, differs from the U.S. federal statutory tax rate of 21 percent primarily due to tax benefits associated with our nontaxable REIT earnings and the projected mix of earnings between our REIT and our TRSs. At the end of 2020, we expect to have approximately $60 million in unrecognized tax benefits that, if recognized, would favorably affect our receivables for taxes. These benefits relate to our interest expense calculation under the Tax Cuts and Jobs Act of 2017. We anticipate forthcoming Federal Tax Regulations, which are currently under review by the Treasury Department, will resolve uncertainties related to this tax position within the next 12 months. This tax position does not impact our effective tax rate. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Consolidation | Our consolidated financial statements provide an overall view of our results of operations, financial condition and cash flows. They include our accounts and the accounts of entities we control, including majority-owned domestic and foreign subsidiaries. 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,” “we,” “the company” and “our” refer to the consolidated company. |
Earnings Per Share | We use the treasury stock method to calculate the dilutive effect of our outstanding stock options, restricted stock units and performance share units. |
Fair Value of Financial Instruments | 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 variable rate long-term debt and line of credit instruments have net carrying values that approximate their fair values with only insignificant differences. The inputs to these valuations are based on market data obtained from independent sources or information derived principally from observable market data. The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at the measurement date. |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Reconciliation of Business Segment Information in Consolidated Statement of Operations | A reconciliation of our business segment information to the respective information in the Consolidated Statement of Operations is as follows: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Sales to unaffiliated customers: Timberlands $ 381 $ 431 Real Estate & ENR 112 118 Wood Products 1,235 1,094 1,728 1,643 Intersegment sales: Timberlands 122 125 Total sales 1,850 1,768 Intersegment eliminations (122 ) (125 ) Total $ 1,728 $ 1,643 Net contribution (charge) to earnings: Timberlands $ 105 $ 120 Real Estate & ENR 36 55 Wood Products 134 69 275 244 Unallocated items (1) (43 ) (530 ) Net contribution (charge) to earnings 232 (286 ) Interest expense, net of capitalized interest (85 ) (107 ) Earnings (loss) before income taxes 147 (393 ) Income taxes 3 104 Net earnings (loss) $ 150 $ (289 ) (1) 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 postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue by Major Products | A reconciliation of revenue recognized by our major products: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Net sales to unaffiliated customers: Timberlands segment Delivered logs: West Domestic sales $ 87 $ 101 Export grade sales 90 104 Subtotal West 177 205 South 150 159 North (1) 17 29 Subtotal delivered logs sales 344 393 Stumpage and pay-as-cut timber 5 9 Recreational and other lease revenue 15 15 Other (2) 17 14 Net sales attributable to Timberlands segment 381 431 Real Estate & ENR segment Real estate 95 96 Energy and natural resources 17 22 Net sales attributable to Real Estate & ENR segment 112 118 Wood Products segment Structural lumber 508 444 Oriented strand board 190 160 Engineered solid section 127 116 Engineered I-joists 78 70 Softwood plywood 39 44 Medium density fiberboard 44 38 Complementary building products 153 137 Other (3) 96 85 Net sales attributable to Wood Products segment 1,235 1,094 Total net sales $ 1,728 $ 1,643 (1) In November 2019, we sold our Michigan timberlands. (2) Other Timberlands sales include sales of seeds and seedlings from our nursery operations as well as wood chips. (3) Other Wood Products sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations. |
NET EARNINGS (LOSS) PER SHARE_2
NET EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Dilutive Potential Common Shares | Diluted earnings (loss) per share is net earnings (loss) divided by the sum of the weighted average number of our outstanding common shares and the effect of our outstanding dilutive potential common shares. QUARTER ENDED SHARES IN THOUSANDS MARCH 2020 MARCH 2019 Weighted average common shares outstanding – basic 746,534 746,603 Dilutive potential common shares: Stock options 338 — Restricted stock units 283 — Total effect of outstanding dilutive potential common shares 621 — Weighted average common shares outstanding – dilutive 747,155 746,603 |
Potential Shares Not Included in the Computation of Diluted Earnings (Loss) per Share | The following shares were not included in the computation of diluted earnings (loss) 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. QUARTER ENDED SHARES IN THOUSANDS MARCH 2020 MARCH 2019 Stock options 2,292 2,862 Restricted stock units — 383 Performance share units 1,390 1,356 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories include raw materials, work-in-process, finished goods, as well as materials and supplies. DOLLAR AMOUNTS IN MILLIONS MARCH 31, 2020 DECEMBER 31, 2019 LIFO inventories: Logs $ 20 $ 19 Lumber, plywood, panels and fiberboard 89 82 Other products 14 10 FIFO or moving average cost inventories: Logs 69 28 Lumber, plywood, panels, fiberboard and engineered wood products 92 84 Other products 99 98 Materials and supplies 97 95 Total $ 480 $ 416 |
PENSION AND OTHER POSTRETIREM_2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Pension And Other Postretirement Benefit Expense [Abstract] | |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost are: PENSION QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Service cost $ 10 $ 8 Interest cost 35 43 Expected return on plan assets (59 ) (62 ) Amortization of actuarial loss 30 30 Amortization of prior service cost 1 1 Settlement charge — 455 Total net periodic benefit cost - pension $ 17 $ 475 OTHER POSTRETIREMENT BENEFITS QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Interest cost $ 1 $ 2 Amortization of actuarial loss 1 2 Amortization of prior service credit — (1 ) Total net periodic benefit cost - other postretirement benefits $ 2 $ 3 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities Current [Abstract] | |
Accrued Liabilities | Accrued liabilities were comprised of the following: DOLLAR AMOUNTS IN MILLIONS MARCH 31, 2020 DECEMBER 31, 2019 Compensation and employee benefit costs $ 143 $ 188 Current portion of lease liabilities 32 33 Customer rebates, volume discounts and deferred income 73 105 Interest 74 98 Taxes payable 32 24 Other 94 82 Total $ 448 $ 530 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Abstract] | |
Estimated Fair Values and Carrying Values of Long-Term Debt and Line of Credit | The estimated fair values and carrying values of our long-term debt and line of credit consisted of the following: MARCH 31, 2020 DECEMBER 31, 2019 DOLLAR AMOUNTS IN MILLIONS CARRYING VALUE FAIR VALUE (LEVEL 2) CARRYING VALUE FAIR VALUE (LEVEL 2) Long-term debt (including current maturities) and line of credit: Fixed rate $ 6,651 $ 7,233 $ 5,922 $ 6,986 Variable rate 775 775 455 455 Total debt $ 7,426 $ 8,008 $ 6,377 $ 7,441 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Changes in Amounts Included in Our Accumulated Other Comprehensive Loss | Changes in amounts included in our accumulated other comprehensive loss by component are: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Pension (1) Balance at beginning of period $ (1,128 ) $ (1,343 ) Other comprehensive income (loss) before reclassifications 20 (24 ) Amounts reclassified from accumulated other comprehensive loss to earnings (2) 24 367 Total other comprehensive income 44 343 Balance at end of period $ (1,084 ) $ (1,000 ) Other Postretirement Benefits (1) Balance at beginning of period $ (12 ) $ (19 ) Amounts reclassified from accumulated other comprehensive loss to earnings (2) 1 1 Total other comprehensive income 1 1 Balance at end of period $ (11 ) $ (18 ) Translation Adjustments and Other Balance at beginning of period $ 236 $ 210 Translation adjustments (42 ) 14 Total other comprehensive income (loss) (42 ) 14 Balance at end of period 194 224 Accumulated other comprehensive loss, end of period $ (901 ) $ (794 ) (1) Amounts presented are net of tax. (2) Amounts of actuarial loss and prior service (cost) credit are components of net periodic benefit cost (credit). See Note 7: Pension and Other Postretirement Benefit Plans . |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share Based Compensation [Abstract] | |
Schedule of Share-Based Compensation Activity | Share-based compensation activity during quarter-to-date 2020 included the following: SHARES IN THOUSANDS GRANTED VESTED Restricted stock units (RSUs) 804 693 Performance share units (PSUs) 377 91 |
Weighted Average Assumptions Used In Estimating Value Of Performance Share Units Granted | Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted in 2020 PERFORMANCE SHARE UNITS Performance period 2/13/2020 – 12/31/2022 Valuation date average stock price (1) $30.03 Expected dividends 4.50% Risk-free rate 1.45% - 1.62% Expected volatility 20.02% – 22.40% (1) Calculated as an average of the high and low prices on grant date. |
OTHER OPERATING COSTS, NET (Tab
OTHER OPERATING COSTS, NET (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income [Abstract] | |
Income and Expense Items Included in Other Operating Costs, Net | QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2020 MARCH 2019 Foreign exchange losses, net 8 3 Litigation expense (income), net (4 ) 25 Research and development expenses 1 1 Other, net 5 8 Total other operating costs, net $ 10 $ 37 |
BUSINESS SEGMENTS Reconciliatio
BUSINESS SEGMENTS Reconciliation of Business Segment Information in Consolidated Statement of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting, Revenue Reconciling Item | ||
Sales to unaffiliated customers | $ 1,728 | $ 1,643 |
Net contribution (charge) to earnings | 232 | (286) |
Interest expense, net of capitalized interest | (85) | (107) |
Earnings (loss) before income taxes | 147 | (393) |
Income taxes | 3 | 104 |
Net earnings (loss) | 150 | (289) |
Operating Segments | ||
Segment Reporting, Revenue Reconciling Item | ||
Sales to unaffiliated customers | 1,850 | 1,768 |
Net contribution (charge) to earnings | 275 | 244 |
Intersegment eliminations | ||
Segment Reporting, Revenue Reconciling Item | ||
Sales to unaffiliated customers | (122) | (125) |
Unallocated items | ||
Segment Reporting, Revenue Reconciling Item | ||
Net contribution (charge) to earnings | (43) | (530) |
Timberlands | ||
Segment Reporting, Revenue Reconciling Item | ||
Sales to unaffiliated customers | 381 | 431 |
Timberlands | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item | ||
Sales to unaffiliated customers | 381 | 431 |
Net contribution (charge) to earnings | 105 | 120 |
Timberlands | Intersegment eliminations | ||
Segment Reporting, Revenue Reconciling Item | ||
Sales to unaffiliated customers | 122 | 125 |
Real Estate & ENR | ||
Segment Reporting, Revenue Reconciling Item | ||
Sales to unaffiliated customers | 112 | 118 |
Real Estate & ENR | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item | ||
Sales to unaffiliated customers | 112 | 118 |
Net contribution (charge) to earnings | 36 | 55 |
Wood Products | ||
Segment Reporting, Revenue Reconciling Item | ||
Sales to unaffiliated customers | 1,235 | 1,094 |
Wood Products | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item | ||
Sales to unaffiliated customers | 1,235 | 1,094 |
Net contribution (charge) to earnings | $ 134 | $ 69 |
REVENUE RECOGNITION Revenue by
REVENUE RECOGNITION Revenue by Major Products (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue from External Customer | ||
Net sales | $ 1,728 | $ 1,643 |
Timberlands | ||
Revenue from External Customer | ||
Net sales | 381 | 431 |
Timberlands | Delivered logs | ||
Revenue from External Customer | ||
Net sales | 344 | 393 |
Timberlands | Stumpage and pay-as-cut timber | ||
Revenue from External Customer | ||
Net sales | 5 | 9 |
Timberlands | Recreational and other lease revenue | ||
Revenue from External Customer | ||
Net sales | 15 | 15 |
Timberlands | Other | ||
Revenue from External Customer | ||
Net sales | 17 | 14 |
Timberlands | West | Delivered logs | ||
Revenue from External Customer | ||
Net sales | 177 | 205 |
Timberlands | South | Delivered logs | ||
Revenue from External Customer | ||
Net sales | 150 | 159 |
Timberlands | North | Delivered logs | ||
Revenue from External Customer | ||
Net sales | 17 | 29 |
Timberlands | Domestic grade sales | West | Delivered logs | ||
Revenue from External Customer | ||
Net sales | 87 | 101 |
Timberlands | Export grade sales | West | Delivered logs | ||
Revenue from External Customer | ||
Net sales | 90 | 104 |
Real Estate & ENR | ||
Revenue from External Customer | ||
Net sales | 112 | 118 |
Real Estate & ENR | Real Estate | ||
Revenue from External Customer | ||
Net sales | 95 | 96 |
Real Estate & ENR | Energy and natural resources | ||
Revenue from External Customer | ||
Net sales | 17 | 22 |
Wood Products | ||
Revenue from External Customer | ||
Net sales | 1,235 | 1,094 |
Wood Products | Structural lumber | ||
Revenue from External Customer | ||
Net sales | 508 | 444 |
Wood Products | Oriented strand board | ||
Revenue from External Customer | ||
Net sales | 190 | 160 |
Wood Products | Engineered solid section | ||
Revenue from External Customer | ||
Net sales | 127 | 116 |
Wood Products | Engineered I-joists | ||
Revenue from External Customer | ||
Net sales | 78 | 70 |
Wood Products | Softwood plywood | ||
Revenue from External Customer | ||
Net sales | 39 | 44 |
Wood Products | Medium density fiberboard | ||
Revenue from External Customer | ||
Net sales | 44 | 38 |
Wood Products | Complementary building products | ||
Revenue from External Customer | ||
Net sales | 153 | 137 |
Wood Products | Other | ||
Revenue from External Customer | ||
Net sales | $ 96 | $ 85 |
NET EARNINGS (LOSS) PER SHARE_3
NET EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Feb. 07, 2019 | |
Earnings Per Share [Abstract] | |||
Earnings (loss) per share, basic and diluted | $ 0.20 | $ (0.39) | |
Stock repurchase program, authorized amount | $ 500,000,000 | ||
Shares repurchased during period | 0 | 2,300,000 | |
Shares repurchased during period value | $ 0 | $ 60,000,000 | |
Stock repurchase program, remaining authorized repurchase amount | $ 440,000,000 |
NET EARNINGS (LOSS) PER SHARE_4
NET EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES - Dilutive Potential Common Shares (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share Basic And Diluted [Line Items] | ||
Basic | 746,534 | 746,603 |
Dilutive potential common shares | 621 | 0 |
Diluted | 747,155 | 746,603 |
Stock options | ||
Earnings Per Share Basic And Diluted [Line Items] | ||
Dilutive potential common shares | 338 | 0 |
Restricted stock units | ||
Earnings Per Share Basic And Diluted [Line Items] | ||
Dilutive potential common shares | 283 | 0 |
NET EARNINGS (LOSS) PER SHARE_5
NET EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES - Potential Shares Not Included in the Computation of Diluted Earnings (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
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 | 2,292 | 2,862 |
Restricted stock 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 | 0 | 383 |
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 | 1,390 | 1,356 |
INVENTORIES Inventories (Detail
INVENTORIES Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory [Line Items] | ||
Total | $ 480 | $ 416 |
Logs | ||
Inventory [Line Items] | ||
LIFO inventories | 20 | 19 |
FIFO or moving average cost inventories | 69 | 28 |
Lumber, plywood, panels and fiberboard | ||
Inventory [Line Items] | ||
LIFO inventories | 89 | 82 |
Lumber, plywood, panels, fiberboard and engineered wood products | ||
Inventory [Line Items] | ||
FIFO or moving average cost inventories | 92 | 84 |
Other products | ||
Inventory [Line Items] | ||
LIFO inventories | 14 | 10 |
FIFO or moving average cost inventories | 99 | 98 |
Materials and supplies | ||
Inventory [Line Items] | ||
FIFO or moving average cost inventories | $ 97 | $ 95 |
INVENTORIES Additional informat
INVENTORIES Additional information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Increase in inventory amount if FIFO would have been used | $ 76 | $ 76 |
VARIABLE INTEREST ENTITIES Addi
VARIABLE INTEREST ENTITIES Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Mar. 31, 2020 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |||||
Proceeds from note receivable held by variable interest entities | $ 362 | $ 253 | |||
Payment of SPE liabilities | $ 302 | $ 209 | |||
Current restricted financial investments held by variable interest entities | $ 0 | $ 362 |
PENSION AND OTHER POSTRETIREM_3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 10 | $ 8 | |
Interest cost | 35 | 43 | |
Expected return on plan assets | (59) | (62) | |
Amortization of actuarial loss | 30 | 30 | |
Amortization of prior service cost (credit) | 1 | 1 | |
Settlement charge | 0 | $ (6) | 455 |
Total net periodic benefit cost | 17 | 475 | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost | 1 | 2 | |
Amortization of actuarial loss | 1 | 2 | |
Amortization of prior service cost (credit) | 0 | (1) | |
Total net periodic benefit cost | $ 2 | $ 3 |
PENSION AND OTHER POSTRETIREM_4
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan | $ (1,500) | ||
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Payment for Settlement | $ 449 | $ 455 | |
Reduction in settlement charge | $ 0 | $ 6 | $ (455) |
ACCRUED LIABILITIES Accrued Lia
ACCRUED LIABILITIES Accrued Liabilities (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities Current [Abstract] | ||
Compensation and employee benefit costs | $ 143 | $ 188 |
Current portion of lease liabilities | 32 | 33 |
Customer rebates, volume discounts and deferred income | 73 | 105 |
Interest | 74 | 98 |
Taxes payable | 32 | 24 |
Other | 94 | 82 |
Total | $ 448 | $ 530 |
LONG-TERM DEBT AND LINE OF CR_2
LONG-TERM DEBT AND LINE OF CREDIT - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||||
Apr. 30, 2020 | Mar. 31, 2020 | Jan. 31, 2020 | Mar. 31, 2019 | Feb. 28, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||||||
Proceeds from debt, net of issuance costs | $ 739,000,000 | |||||||
Book value | $ 7,426,000,000 | $ 7,426,000,000 | $ 6,377,000,000 | |||||
Pretax charge related to early extinguishment of debt | 12,000,000 | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ 500,000,000 | $ 500,000,000 | ||||||
Borrowings on line of credit (Note 9) | 550,000,000 | 550,000,000 | $ 230,000,000 | |||||
4.00 percent due in April 2030 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 750,000,000 | $ 750,000,000 | ||||||
Debt instrument, interest rate, stated percentage | 4.00% | 4.00% | ||||||
Proceeds from debt, net of issuance costs | $ 732,000,000 | |||||||
Debt, maturity date | Apr. 30, 2030 | |||||||
4.70 percent due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 569,000,000 | $ 569,000,000 | ||||||
Debt instrument, interest rate, stated percentage | 4.70% | 4.70% | ||||||
Book value | $ 577,000,000 | $ 577,000,000 | ||||||
Debt, redemption price | $ 588,000,000 | |||||||
4.70 percent due 2021 | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 4.70% | |||||||
Debt, maturity date | Mar. 31, 2021 | |||||||
4.00 percent due in November 2029 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt issued | $ 750,000,000 | |||||||
Debt instrument, interest rate, stated percentage | 4.00% | |||||||
Debt, maturity date | Nov. 30, 2029 | |||||||
7.38 percent due in October 2019 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 7.38% | 7.38% | ||||||
Debt, maturity date | Oct. 31, 2019 | |||||||
Repayments of debt | $ 500,000,000 | |||||||
Amended and Restated | ||||||||
Debt Instrument [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 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS Estimated Fair Values and Carrying Values of Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Long-term debt (including current maturities) and line of credit, carrying value | $ 7,426 | $ 6,377 |
Long-term debt (including current maturities) and line of credit, fair value (Level 2) | 8,008 | 7,441 |
Fixed interest rate | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Long-term debt (including current maturities) and line of credit, carrying value | 6,651 | 5,922 |
Long-term debt (including current maturities) and line of credit, fair value (Level 2) | 7,233 | 6,986 |
Variable interest rate | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||
Long-term debt (including current maturities) and line of credit, carrying value | 775 | 455 |
Long-term debt (including current maturities) and line of credit, fair value (Level 2) | $ 775 | $ 455 |
LEGAL PROCEEDINGS, COMMITMENT_2
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | Mar. 31, 2020USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Accrued estimated remediation costs | $ 61 |
Asset retirement obligations | $ 32 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Changes in Amounts Included in Our Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | $ 8,177 | |
Translation adjustments | (42) | $ 14 |
Total other comprehensive income | 3 | 358 |
Balance at end of period | 8,082 | 8,801 |
Pension | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (1,128) | (1,343) |
Other comprehensive income (loss) before reclassifications | 20 | (24) |
Amounts reclassified from accumulated other comprehensive loss to earnings | 24 | 367 |
Total other comprehensive income | 44 | 343 |
Balance at end of period | (1,084) | (1,000) |
Other Postretirement Benefits | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (12) | (19) |
Amounts reclassified from accumulated other comprehensive loss to earnings | 1 | 1 |
Total other comprehensive income | 1 | 1 |
Balance at end of period | (11) | (18) |
Translation Adjustment And Other | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | 236 | 210 |
Translation adjustments | (42) | 14 |
Total other comprehensive income | (42) | 14 |
Balance at end of period | 194 | 224 |
Accumulated other comprehensive loss: | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance at beginning of period | (904) | (1,152) |
Balance at end of period | $ (901) | $ (794) |
SHARE-BASED COMPENSATION Schedu
SHARE-BASED COMPENSATION Schedule of Share-Based Compensation Activity (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2020shares | |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Granted | 804 |
Vested | 693 |
Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Granted | 377 |
Vested | 91 |
SHARE-BASED COMPENSATION Additi
SHARE-BASED COMPENSATION Additional Information (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Shares issued during period | shares | 906 |
Restricted stock units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Weighted average fair value of units granted | $ 30.03 |
Performance share units | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Weighted average fair value of units granted | $ 33.16 |
Maximum percentage of target value | 100.00% |
Performance share units | Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Final number of shares awarded of each grant's target | 0.00% |
Performance share units | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Final number of shares awarded of each grant's target | 150.00% |
SHARE-BASED COMPENSATION Weight
SHARE-BASED COMPENSATION Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted (Details) - Performance share units | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Valuation date average stock price | $ 30.03 |
Expected dividends | 4.50% |
Risk-free rate minimum | 1.45% |
Risk-free rate maximum | 1.62% |
Expected volatility minimum | 20.02% |
Expected volatility maximum | 22.40% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Performance period | Feb. 13, 2020 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award | |
Performance period | Dec. 31, 2022 |
DIVESTITURE Additional Informat
DIVESTITURE Additional Information (Details) - Montana $ in Millions | Mar. 26, 2020USD ($) | Dec. 17, 2019a |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of acers of timberlands agreed to be sold | a | 630,000 | |
Proceeds from disposition of operations | $ | $ 145 |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income [Abstract] | ||
Foreign exchange losses, net | $ 8 | $ 3 |
Litigation expense (income), net | (4) | 25 |
Research and development expenses | 1 | 1 |
Other, net | 5 | 8 |
Total other operating costs, net | $ 10 | $ 37 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2020 | |
U.S. federal statutory income tax rate | 21.00% | |
Forecast | ||
Unrecognized tax benefits | $ 60 |