| 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:
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DOLLAR AMOUNTS IN MILLIONS |
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TIMBERLANDS |
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STRATEGIC LAND SOLUTIONS |
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WOOD PRODUCTS |
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UNALLOCATED ITEMS AND INTERSEGMENT ELIMINATIONS |
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CONSOLIDATED |
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QUARTER ENDED SEPTEMBER 2026 |
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Net sales to unaffiliated customers |
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$ |
378 |
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$ |
99 |
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$ |
1,385 |
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$ |
— |
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$ |
1,862 |
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Intersegment sales |
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|
153 |
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— |
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— |
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(153 |
) |
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— |
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Total |
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531 |
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99 |
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1,385 |
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(153 |
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1,862 |
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Costs of sales |
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438 |
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26 |
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1,283 |
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(142 |
) |
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1,605 |
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Gross margin |
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|
93 |
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|
73 |
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|
102 |
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(11 |
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|
257 |
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Selling expenses |
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— |
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— |
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25 |
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1 |
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26 |
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General and administrative expenses |
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25 |
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6 |
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|
40 |
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|
44 |
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|
115 |
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Other segment items(1) |
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1 |
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— |
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|
5 |
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22 |
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|
28 |
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Net contribution (charge) to earnings |
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$ |
67 |
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$ |
67 |
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$ |
32 |
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$ |
(78 |
) |
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$ |
88 |
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QUARTER ENDED SEPTEMBER 2025 |
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Net sales to unaffiliated customers |
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$ |
386 |
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$ |
103 |
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$ |
1,228 |
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$ |
— |
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$ |
1,717 |
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Intersegment sales |
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|
150 |
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— |
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— |
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(150 |
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— |
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Total |
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536 |
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|
103 |
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1,228 |
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(150 |
) |
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1,717 |
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Costs of sales |
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429 |
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28 |
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1,218 |
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(162 |
) |
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1,513 |
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Gross margin |
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|
107 |
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|
75 |
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|
10 |
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|
12 |
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|
204 |
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Selling expenses |
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— |
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— |
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23 |
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— |
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|
23 |
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General and administrative expenses |
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|
25 |
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|
7 |
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|
39 |
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|
36 |
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|
107 |
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Other segment items(1) |
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2 |
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(1 |
) |
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(33 |
) |
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(4 |
) |
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(36 |
) |
Net contribution (charge) to earnings |
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$ |
80 |
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$ |
69 |
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$ |
(19 |
) |
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$ |
(20 |
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$ |
110 |
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YEAR-TO-DATE ENDED SEPTEMBER 2026 |
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Net sales to unaffiliated customers |
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$ |
1,101 |
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$ |
446 |
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$ |
3,909 |
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$ |
— |
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$ |
5,456 |
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Intersegment sales |
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|
440 |
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— |
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— |
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(440 |
) |
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— |
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Total |
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1,541 |
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446 |
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3,909 |
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(440 |
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5,456 |
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Costs of sales |
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1,281 |
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|
96 |
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3,593 |
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(400 |
) |
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4,570 |
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Gross margin |
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260 |
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|
350 |
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|
316 |
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(40 |
) |
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|
886 |
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Selling expenses |
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1 |
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— |
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|
70 |
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2 |
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|
73 |
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General and administrative expenses |
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|
74 |
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20 |
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|
116 |
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|
139 |
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|
349 |
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Other segment items(1) |
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(127 |
) |
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— |
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(15 |
) |
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|
68 |
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(74 |
) |
Net contribution (charge) to earnings |
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$ |
312 |
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$ |
330 |
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$ |
145 |
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$ |
(249 |
) |
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$ |
538 |
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YEAR-TO-DATE ENDED SEPTEMBER 2025 |
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Net sales to unaffiliated customers |
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$ |
1,141 |
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$ |
351 |
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$ |
3,872 |
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$ |
— |
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$ |
5,364 |
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Intersegment sales |
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|
458 |
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— |
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— |
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(458 |
) |
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— |
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Total |
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1,599 |
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351 |
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3,872 |
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(458 |
) |
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5,364 |
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Costs of sales |
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1,254 |
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|
104 |
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3,575 |
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(433 |
) |
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4,500 |
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Gross margin |
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|
345 |
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|
247 |
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|
297 |
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(25 |
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|
864 |
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Selling expenses |
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1 |
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— |
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|
67 |
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1 |
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|
69 |
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General and administrative expenses |
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|
73 |
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|
20 |
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|
118 |
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|
129 |
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|
340 |
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Other segment items(1) |
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1 |
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(4 |
) |
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(21 |
) |
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|
39 |
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|
15 |
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Net contribution (charge) to earnings |
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$ |
270 |
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$ |
231 |
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$ |
133 |
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$ |
(194 |
) |
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$ |
440 |
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(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 year-to-date period ended September 30, 2026. For our Wood Products segment, this includes a gain on the sale of our Princeton lumber mill for the quarter and year-to-date period ended September 30, 2025 and product remediation insurance recoveries for the year-to-date period ended September 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 (Income), Net for additional information.
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| Additional Financial Information |
Additional Financial Information
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|
DOLLAR AMOUNTS IN MILLIONS |
|
TIMBERLANDS |
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|
STRATEGIC LAND SOLUTIONS |
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|
WOOD PRODUCTS |
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|
UNALLOCATED ITEMS AND INTERSEGMENT ELIMINATIONS |
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CONSOLIDATED |
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QUARTER ENDED SEPTEMBER 2026 |
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Depreciation, depletion and amortization |
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$ |
66 |
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$ |
3 |
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$ |
58 |
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$ |
5 |
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$ |
132 |
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Capital expenditures |
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$ |
24 |
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$ |
— |
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$ |
113 |
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$ |
— |
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$ |
137 |
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QUARTER ENDED SEPTEMBER 2025 |
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Depreciation, depletion and amortization |
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$ |
68 |
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$ |
3 |
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$ |
56 |
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$ |
3 |
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$ |
130 |
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Capital expenditures |
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$ |
37 |
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$ |
— |
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$ |
88 |
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$ |
— |
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$ |
125 |
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YEAR-TO-DATE ENDED SEPTEMBER 2026 |
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Depreciation, depletion and amortization |
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$ |
193 |
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$ |
8 |
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$ |
173 |
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$ |
9 |
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$ |
383 |
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Capital expenditures |
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$ |
91 |
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$ |
— |
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$ |
297 |
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$ |
— |
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$ |
388 |
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YEAR-TO-DATE ENDED SEPTEMBER 2025 |
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Depreciation, depletion and amortization |
|
$ |
197 |
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$ |
9 |
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$ |
166 |
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$ |
8 |
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|
$ |
380 |
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Capital expenditures |
|
$ |
82 |
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$ |
— |
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$ |
243 |
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$ |
— |
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$ |
325 |
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| Total Assets |
Total Assets
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DOLLAR AMOUNTS IN MILLIONS |
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SEPTEMBER 30,
2026 |
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DECEMBER 31,
2025 |
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Timberlands and Strategic Land Solutions(1) |
|
$ |
12,365 |
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$ |
12,687 |
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Wood Products |
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|
3,405 |
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|
3,194 |
|
Unallocated items |
|
|
610 |
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|
732 |
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Consolidated |
|
$ |
16,380 |
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$ |
16,613 |
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(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.
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