| Reconciliation of Business Segment Information in Consolidated Statement of Operations |
A reconciliation of our business segment information to the respective information in our Consolidated Statement of Operations is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DOLLAR AMOUNTS IN MILLIONS |
|
TIMBERLANDS |
|
|
STRATEGIC LAND SOLUTIONS |
|
|
WOOD PRODUCTS |
|
|
UNALLOCATED ITEMS AND INTERSEGMENT ELIMINATIONS |
|
|
CONSOLIDATED |
|
QUARTER ENDED JUNE 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to unaffiliated customers |
|
$ |
367 |
|
|
$ |
140 |
|
|
$ |
1,360 |
|
|
$ |
— |
|
|
$ |
1,867 |
|
Intersegment sales |
|
|
151 |
|
|
|
— |
|
|
|
— |
|
|
|
(151 |
) |
|
|
— |
|
Total |
|
|
518 |
|
|
|
140 |
|
|
|
1,360 |
|
|
|
(151 |
) |
|
|
1,867 |
|
Costs of sales |
|
|
434 |
|
|
|
38 |
|
|
|
1,223 |
|
|
|
(139 |
) |
|
|
1,556 |
|
Gross margin |
|
|
84 |
|
|
|
102 |
|
|
|
137 |
|
|
|
(12 |
) |
|
|
311 |
|
Selling expenses |
|
|
1 |
|
|
|
— |
|
|
|
23 |
|
|
|
— |
|
|
|
24 |
|
General and administrative expenses |
|
|
24 |
|
|
|
8 |
|
|
|
37 |
|
|
|
46 |
|
|
|
115 |
|
Other segment items(1) |
|
|
(71 |
) |
|
|
— |
|
|
|
6 |
|
|
|
24 |
|
|
|
(41 |
) |
Net contribution (charge) to earnings |
|
$ |
130 |
|
|
$ |
94 |
|
|
$ |
71 |
|
|
$ |
(82 |
) |
|
$ |
213 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER ENDED JUNE 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to unaffiliated customers |
|
$ |
373 |
|
|
$ |
154 |
|
|
$ |
1,357 |
|
|
$ |
— |
|
|
$ |
1,884 |
|
Intersegment sales |
|
|
156 |
|
|
|
— |
|
|
|
— |
|
|
|
(156 |
) |
|
|
— |
|
Total |
|
|
529 |
|
|
|
154 |
|
|
|
1,357 |
|
|
|
(156 |
) |
|
|
1,884 |
|
Costs of sales |
|
|
416 |
|
|
|
44 |
|
|
|
1,243 |
|
|
|
(144 |
) |
|
|
1,559 |
|
Gross margin |
|
|
113 |
|
|
|
110 |
|
|
|
114 |
|
|
|
(12 |
) |
|
|
325 |
|
Selling expenses |
|
|
1 |
|
|
|
— |
|
|
|
22 |
|
|
|
— |
|
|
|
23 |
|
General and administrative expenses |
|
|
24 |
|
|
|
6 |
|
|
|
40 |
|
|
|
44 |
|
|
|
114 |
|
Other segment items(1) |
|
|
— |
|
|
|
(2 |
) |
|
|
6 |
|
|
|
19 |
|
|
|
23 |
|
Net contribution (charge) to earnings |
|
$ |
88 |
|
|
$ |
106 |
|
|
$ |
46 |
|
|
$ |
(75 |
) |
|
$ |
165 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE ENDED JUNE 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to unaffiliated customers |
|
$ |
723 |
|
|
$ |
347 |
|
|
$ |
2,524 |
|
|
$ |
— |
|
|
$ |
3,594 |
|
Intersegment sales |
|
|
287 |
|
|
|
— |
|
|
|
— |
|
|
|
(287 |
) |
|
|
— |
|
Total |
|
|
1,010 |
|
|
|
347 |
|
|
|
2,524 |
|
|
|
(287 |
) |
|
|
3,594 |
|
Costs of sales |
|
|
843 |
|
|
|
70 |
|
|
|
2,310 |
|
|
|
(258 |
) |
|
|
2,965 |
|
Gross margin |
|
|
167 |
|
|
|
277 |
|
|
|
214 |
|
|
|
(29 |
) |
|
|
629 |
|
Selling expenses |
|
|
1 |
|
|
|
— |
|
|
|
45 |
|
|
|
1 |
|
|
|
47 |
|
General and administrative expenses |
|
|
49 |
|
|
|
14 |
|
|
|
76 |
|
|
|
95 |
|
|
|
234 |
|
Other segment items(1) |
|
|
(128 |
) |
|
|
— |
|
|
|
(20 |
) |
|
|
46 |
|
|
|
(102 |
) |
Net contribution (charge) to earnings |
|
$ |
245 |
|
|
$ |
263 |
|
|
$ |
113 |
|
|
$ |
(171 |
) |
|
$ |
450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE ENDED JUNE 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales to unaffiliated customers |
|
$ |
755 |
|
|
$ |
248 |
|
|
$ |
2,644 |
|
|
$ |
— |
|
|
$ |
3,647 |
|
Intersegment sales |
|
|
308 |
|
|
|
— |
|
|
|
— |
|
|
|
(308 |
) |
|
|
— |
|
Total |
|
|
1,063 |
|
|
|
248 |
|
|
|
2,644 |
|
|
|
(308 |
) |
|
|
3,647 |
|
Costs of sales |
|
|
825 |
|
|
|
76 |
|
|
|
2,357 |
|
|
|
(271 |
) |
|
|
2,987 |
|
Gross margin |
|
|
238 |
|
|
|
172 |
|
|
|
287 |
|
|
|
(37 |
) |
|
|
660 |
|
Selling expenses |
|
|
1 |
|
|
|
— |
|
|
|
44 |
|
|
|
1 |
|
|
|
46 |
|
General and administrative expenses |
|
|
48 |
|
|
|
13 |
|
|
|
79 |
|
|
|
93 |
|
|
|
233 |
|
Other segment items(1) |
|
|
(1 |
) |
|
|
(3 |
) |
|
|
12 |
|
|
|
43 |
|
|
|
51 |
|
Net contribution (charge) to earnings |
|
$ |
190 |
|
|
$ |
162 |
|
|
$ |
152 |
|
|
$ |
(174 |
) |
|
$ |
330 |
|
(1)Other segment items for each reportable segment includes recurring and non-recurring income and expense items. For our Timberlands segment, this includes gains on the sale of timberlands for the quarter and year-to-date period ended June 30, 2026. For our Wood Products segment, this includes product remediation insurance recoveries for the year-to-date period ended June 30, 2026. For Unallocated Items, this includes non-operating pension and other post-employment benefit costs and interest income and other for all periods presented. Refer to Note 13: Other Operating Costs, Net for additional information.
|
| Additional Financial Information |
Additional Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DOLLAR AMOUNTS IN MILLIONS |
|
TIMBERLANDS |
|
|
STRATEGIC LAND SOLUTIONS |
|
|
WOOD PRODUCTS |
|
|
UNALLOCATED ITEMS AND INTERSEGMENT ELIMINATIONS |
|
|
CONSOLIDATED |
|
QUARTER ENDED JUNE 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
$ |
64 |
|
|
$ |
4 |
|
|
$ |
58 |
|
|
$ |
1 |
|
|
$ |
127 |
|
Capital expenditures |
|
$ |
24 |
|
|
$ |
— |
|
|
$ |
115 |
|
|
$ |
— |
|
|
$ |
139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
QUARTER ENDED JUNE 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
$ |
64 |
|
|
$ |
4 |
|
|
$ |
55 |
|
|
$ |
2 |
|
|
$ |
125 |
|
Capital expenditures |
|
$ |
19 |
|
|
$ |
— |
|
|
$ |
88 |
|
|
$ |
— |
|
|
$ |
107 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE ENDED JUNE 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
$ |
127 |
|
|
$ |
5 |
|
|
$ |
115 |
|
|
$ |
4 |
|
|
$ |
251 |
|
Capital expenditures |
|
$ |
67 |
|
|
$ |
— |
|
|
$ |
184 |
|
|
$ |
— |
|
|
$ |
251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YEAR-TO-DATE ENDED JUNE 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, depletion and amortization |
|
$ |
129 |
|
|
$ |
6 |
|
|
$ |
110 |
|
|
$ |
5 |
|
|
$ |
250 |
|
Capital expenditures |
|
$ |
45 |
|
|
$ |
— |
|
|
$ |
155 |
|
|
$ |
— |
|
|
$ |
200 |
|
|
| Total Assets |
Total Assets
|
|
|
|
|
|
|
|
|
DOLLAR AMOUNTS IN MILLIONS |
|
JUNE 30,
2026 |
|
|
DECEMBER 31,
2025 |
|
Timberlands and Strategic Land Solutions(1) |
|
$ |
12,398 |
|
|
$ |
12,687 |
|
Wood Products |
|
|
3,368 |
|
|
|
3,194 |
|
Unallocated items |
|
|
747 |
|
|
|
732 |
|
Consolidated |
|
$ |
16,513 |
|
|
$ |
16,613 |
|
(1)Assets attributable to the Strategic Land Solutions segment are combined with total assets for the Timberlands segment as we do not produce separate balance sheets internally.
|