PLUM CREEK TIMBER CO INC - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION

Attached files

file	filename
8-K - FORM 8-K - PLUM CREEK TIMBER CO INC	a201509308k.htm
EX-99.1 - PRESS RELEASE - PLUM CREEK TIMBER CO INC	exhibit99120150930.htm

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)




	Nine Months Ended September 30,
(In Millions, Except Per Share Amounts)	2015		2014
REVENUES:
Timber	$	548	$	563
Real Estate	263		169
Manufacturing	271		275
Energy and Natural Resources	24		26
Other	16		15
Total Revenues	1,122		1,048

COSTS AND EXPENSES:
Cost of Goods Sold:
Timber	405		407
Real Estate	144		75
Manufacturing	236		241
Energy and Natural Resources	8		8
Other	14		14
Total Cost of Goods Sold	807		745
Selling, General and Administrative	100		82
Total Costs and Expenses	907		827

Other Operating Income (Expense), net	6		9

Operating Income	221		230

Earnings from Unconsolidated Entities	66		44

Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	81		81
Interest Expense (Note Payable to Timberland Venture)	43		43
Total Interest Expense, net	124		124

Income before Income Taxes	163		150

Provision (Benefit) for Income Taxes	—		4

Net Income	$	163	$	146

PER SHARE AMOUNTS:

Net Income per Share – Basic	$	0.93	$	0.82
Net Income per Share – Diluted	$	0.93	$	0.82

Weighted-Average Number of Shares Outstanding
– Basic	175.2		177.0
– Diluted	175.5		177.3


SUPPLEMENTAL INCOME STATEMENT INFORMATION:
Equity Earnings from Timberland Venture	$	59	$	48
Equity Earnings (Loss) from Real Estate Development Ventures	7		(4		)
Earnings from Unconsolidated Entities	$	66	$	44

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)



	Quarter Ended September 30,
(In Millions, Except Per Share Amounts)	2015			2014
REVENUES:
Timber	$	186		$	200
Real Estate	129			69
Manufacturing	85			91
Energy and Natural Resources	8			8
Other	6			7
Total Revenues	414			375

COSTS AND EXPENSES:
Cost of Goods Sold:
Timber	139			144
Real Estate	43			35
Manufacturing	76			78
Energy and Natural Resources	3			3
Other	4			6
Total Cost of Goods Sold	265			266
Selling, General and Administrative	35			23
Total Costs and Expenses	300			289

Other Operating Income (Expense), net	1			5

Operating Income	115			91

Earnings from Unconsolidated Entities	25			15

Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	27			27
Interest Expense (Note Payable to Timberland Venture)	14			14
Total Interest Expense, net	41			41

Income before Income Taxes	99			65

Provision (Benefit) for Income Taxes	(1		)	4

Net Income	$	100		$	61

PER SHARE AMOUNTS:

Net Income per Share – Basic	$	0.58		$	0.34
Net Income per Share – Diluted	$	0.58		$	0.34

Weighted-Average Number of Shares Outstanding
– Basic	174.3			176.8
– Diluted	174.6			177.1


SUPPLEMENTAL INCOME STATEMENT INFORMATION:
Equity Earnings from Timberland Venture	$	19		$	16
Equity Earnings (Loss) from Real Estate Development Ventures	6			(1		)
Earnings from Unconsolidated Entities	$	25		$	15

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)



(In Millions, Except Per Share Amounts)	September 30, 2015			December 31, 2014
ASSETS
Current Assets:
Cash and Cash Equivalents	$	81		$	92
Accounts Receivable	43			38
Inventories	59			61
Deferred Tax Asset	6			6
Assets Held for Sale	39			98
Other Current Assets	16			15
	244			310

Timber and Timberlands, net	3,924			4,009
Minerals and Mineral Rights, net	283			289
Property, Plant and Equipment, net	113			120
Equity Investment in Timberland Venture	217			217
Equity Investment in Real Estate Development Ventures	107			126
Deferred Tax Asset	28			23
Investment in Grantor Trusts (at Fair Value)	45			48
Other Assets	43			45
Total Assets	$	5,004		$	5,187

LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	439		$	439
Line of Credit	42			95
Accounts Payable	36			27
Interest Payable	32			22
Wages Payable	21			31
Taxes Payable	17			10
Deferred Revenue	30			23
Other Current Liabilities	16			10
	633			657

Long-Term Debt	1,976			1,976
Note Payable to Timberland Venture	783			783
Other Liabilities	106			100
Total Liabilities	3,498			3,516

Commitments and Contingencies

STOCKHOLDERS’ EQUITY
Preferred Stock, $0.01 Par Value, Authorized Shares – 75.0, Outstanding – None	—			—
Common Stock, $0.01 Par Value, Authorized Shares – 300.6, Outstanding (net of Treasury Stock) – 173.6 at September 30, 2015 and 175.9 at December 31, 2014	2			2
Additional Paid-In Capital	2,963			2,955
Retained Earnings (Accumulated Deficit)	(340		)	(271		)
Treasury Stock, at Cost, Common Shares – 30.8 at September 30, 2015 and 28.3 at December 31, 2014	(1,094		)	(992		)
Accumulated Other Comprehensive Income (Loss)	(25		)	(23		)
Total Stockholders’ Equity	1,506			1,671
Total Liabilities and Stockholders’ Equity	$	5,004		$	5,187

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



	Nine Months Ended September 30,
(In Millions)	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	163		$	146
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (Includes $2 MDF Fire Impairment Loss in 2014)	99			101
Basis of Real Estate Sold	131			60
Earnings from Unconsolidated Entities	(66		)	(44		)
Distributions from Timberland Venture	59			57
Distributions from Real Estate Development Ventures	7			—
Deferred Income Taxes	(5		)	2
Working Capital Changes	25			3
Other	9			(3		)
Net Cash Provided By (Used In) Operating Activities	422			322

CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures, Excluding Timberland Acquisitions (Includes $9 MDF Fire Replacement Capital in 2014)	(61		)	(65		)
Timberlands Acquired	(7		)	—
Contributions to Real Estate Development Ventures	(5		)	(9		)
Distributions from Real Estate Development Ventures	24			5
Insurance Recoveries (Property Damage)	2			3
Sales/(Purchases) of Marketable Securities, net	1			—
Other	(1		)	—
Net Cash Provided By (Used In) Investing Activities	(47		)	(66		)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends	(232		)	(234		)
Borrowings on Line of Credit	374			985
Repayments on Line of Credit	(427		)	(1,300		)
Proceeds from Stock Option Exercises	1			2
Acquisition of Treasury Stock	(102		)	(52		)
Net Cash Provided By (Used In) Financing Activities	(386		)	(599		)

Increase (Decrease) In Cash and Cash Equivalents	(11		)	(343		)
Cash and Cash Equivalents:
Beginning of Period	92			433

End of Period	$	81		$	90

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)



	Quarter Ended September 30,
(In Millions)	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	100		$	61
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization	34			35
Basis of Real Estate Sold	39			29
Earnings from Unconsolidated Entities	(25		)	(15		)
Distributions from Timberland Venture	29			29
Distributions from Real Estate Development Ventures	6			—
Deferred Income Taxes	(3		)	2
Working Capital Changes	10			(4		)
Other	5			(4		)
Net Cash Provided By (Used In) Operating Activities	195			133

CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures, Excluding Timberland Acquisitions (Includes $5 MDF Fire Replacement Capital in 2014)	(23		)	(25		)
Timberlands Acquired	—			—
Contributions to Real Estate Development Ventures	(3		)	(5		)
Distributions from Real Estate Development Ventures	22			4
Insurance Recoveries (Property Damage)	1			3
Other	(1		)	—
Net Cash Provided By (Used In) Investing Activities	(4		)	(23		)

CASH FLOWS FROM FINANCING ACTIVITIES
Dividends	(77		)	(78		)
Borrowings on Line of Credit	158			237
Repayments on Line of Credit	(224		)	(237		)
Proceeds from Stock Option Exercises	—			1
Acquisition of Treasury Stock	(50		)	(50		)
Net Cash Provided By (Used In) Financing Activities	(193		)	(127		)

Increase (Decrease) In Cash and Cash Equivalents	(2		)	(17		)
Cash and Cash Equivalents:
Beginning of Period	83			107

End of Period	$	81		$	90

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

SEGMENT DATA

(UNAUDITED)



	Nine Months Ended September 30,
(In Millions)	2015			2014
Revenues:
Northern Resources	$	172		$	198
Southern Resources	393			386
Real Estate	263			169
Manufacturing	271			275
Energy and Natural Resources	24			26
Other	16			15
Eliminations	(17		)	(21		)
Total Revenues	$	1,122		$	1,048

Operating Income (Loss):
Northern Resources	$	22		$	34
Southern Resources	96			99
Real Estate	114			91
Manufacturing ^(A)	31			35
Energy and Natural Resources	15			18
Other ^(B)	7			(5		)
Other Costs and Eliminations, net	(57		)	(46		)
Total Operating Income	$	228		$	226

Adjusted EBITDA by Segment: ^(C)
Northern Resources	$	42		$	55
Southern Resources	158			158
Real Estate	245			152
Manufacturing	39			47
Energy and Natural Resources	22			24
Other	22			(2		)
Other Costs and Eliminations, net	(56		)	(45		)
Total	$	472		$	389

(A)

During the second quarter of 2014, we experienced a fire at our MDF facility and recorded a $2 million loss representing the net book value of the building and equipment damaged or destroyed by the fire. For the nine-month periods ended September 30, 2015 and September 30, 2014, we recorded gains related to insurance recoveries of $3 million and $9 million, respectively. Insurance recoveries were received for costs incurred to rebuild or replace the damaged building and equipment and for business interruption costs. Both the building and equipment loss and the insurance recoveries are reported as Other Operating Gain (Loss) in our Manufacturing Segment and are included in Other Operating Income (Expense), net in the Consolidated Statements of Income.


(B)	For segment reporting, Equity Earnings (Loss) from Real Estate Development Ventures is included in Operating Income (Loss) for the Other Segment. Equity earnings of $7 million and an equity loss of $4 million were recorded for the nine-month periods ended September 30, 2015 and September 30, 2014, respectively.


(C)	Refer to the separate schedule, "Segment Data - Adjusted EBITDA" for reconciliations of Adjusted EBITDA to operating income and net cash provided by operating activities.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

SEGMENT DATA

(UNAUDITED)



	Quarter Ended September 30,
(In Millions)	2015			2014
Revenues:
Northern Resources	$	55		$	71
Southern Resources	136			136
Real Estate	129			69
Manufacturing	85			91
Energy and Natural Resources	8			8
Other	6			7
Eliminations	(5		)	(7		)
Total Revenues	$	414		$	375

Operating Income (Loss):
Northern Resources	$	6		$	13
Southern Resources	33			35
Real Estate	84			34
Manufacturing ^(A)	8			16
Energy and Natural Resources	5			6
Other ^(B)	6			(1		)
Other Costs and Eliminations, net	(21		)	(13		)
Total Operating Income	$	121		$	90

Adjusted EBITDA by Segment: ^(C)
Northern Resources	$	13		$	20
Southern Resources	54			57
Real Estate	123			64
Manufacturing	11			19
Energy and Natural Resources	8			8
Other	15			1
Other Costs and Eliminations, net	(21		)	(13		)
Total	$	203		$	156

(A)

During the second quarter of 2014, we experienced a fire at our MDF facility and recorded a $2 million loss representing the net book value of the building and equipment damaged or destroyed by the fire. For the quarterly periods ended September 30, 2015 and September 30, 2014, we recorded gains related to insurance recoveries of $1 million and $5 million, respectively. Insurance recoveries were received for costs incurred to rebuild or replace the damaged building and equipment and for business interruption costs. Both the building and equipment loss and the insurance recoveries are reported as Other Operating Gain (Loss) in our Manufacturing Segment and are included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

(B) For segment reporting, Equity Earnings (Loss) from Real Estate Development Ventures is included in Operating Income (Loss) for the Other Segment. Equity earnings of $6 million and an equity loss of $1 million were recorded for the quarterly periods ended September 30, 2015 and September 30, 2014, respectively.

(C) Refer to the separate schedule, "Segment Data - Adjusted EBITDA" for reconciliations of Adjusted EBITDA to operating income and net cash provided by operating activities.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

SELECTED OPERATING STATISTICS

(UNAUDITED)



		2015
		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	23	$	22	$	22			$	22
Pulpwood	$/Ton Stumpage	$	13	$	13	$	13			$	13
Northern Resources
Sawlog	$/Ton Delivered	$	86	$	79	$	82			$	83
Pulpwood	$/Ton Delivered	$	48	$	47	$	50			$	48

Lumber⁽¹⁾	$/MBF	$	534	$	422	$	398			$	459
Plywood ⁽¹⁾	$/MSF	$	504	$	520	$	512			$	511
Fiberboard ⁽¹⁾	$/MSF	$	687	$	685	$	677			$	683

Sales Volume
Southern Resources
Sawlog	1,000 Tons	1,527		1,499		1,596				4,622
Pulpwood	1,000 Tons	2,095		2,270		2,376				6,741
Total Harvest		3,622		3,769		3,972		—		11,363
Northern Resources
Sawlog	1,000 Tons	570		434		429				1,433
Pulpwood	1,000 Tons	460		306		429				1,195
Total Harvest		1,030		740		858		—		2,628

Lumber	MBF	36,083		30,510		27,862				94,455
Plywood	MSF	47,530		45,265		45,532				138,327
Fiberboard	MSF	54,053		59,374		56,713				170,140

		2014
		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	22	$	22	$	22	$	23	$	22
Pulpwood	$/Ton Stumpage	$	12	$	12	$	12	$	13	$	12
Northern Resources
Sawlog	$/Ton Delivered	$	86	$	83	$	86	$	86	$	85
Pulpwood	$/Ton Delivered	$	43	$	41	$	46	$	45	$	44

Lumber⁽¹⁾	$/MBF	$	573	$	594	$	579	$	556	$	576
Plywood ⁽¹⁾	$/MSF	$	451	$	468	$	498	$	507	$	483
Fiberboard ⁽¹⁾	$/MSF	$	678	$	675	$	677	$	673	$	676

Sales Volume
Southern Resources
Sawlog	1,000 Tons	1,550		1,619		1,644		1,657		6,470
Pulpwood	1,000 Tons	2,054		2,159		2,395		2,675		9,283
Total Harvest		3,604		3,778		4,039		4,332		15,753
Northern Resources
Sawlog	1,000 Tons	667		499		595		549		2,310
Pulpwood	1,000 Tons	470		248		430		427		1,575
Total Harvest		1,137		747		1,025		976		3,885

Lumber	MBF	37,703		39,697		40,445		36,020		153,865
Plywood	MSF	39,188		37,620		46,693		43,323		166,824
Fiberboard	MSF	50,681		54,831		48,810		49,704		204,026

(1) Represents prices at mill level.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

LAND SALE STATISTICS

(UNAUDITED)



	2015
	1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic	2,060		1,515		1,060				4,635
Large Non-strategic ⁽¹⁾	—		—		97,715				97,715
Conservation ⁽²⁾	121,160		6,610		—				127,770
HBU/Recreation	8,010		8,005		3,735				19,750
Development Properties	—		—		—				—
Conservation Easements	n/a		n/a		n/a				n/a
	131,230		16,130		102,510		—		249,870
Price per Acre
Small Non-strategic	$	1,335	$	955	$	650			$	1,055
Large Non-strategic	$	—	$	—	$	1,230			$	1,230
Conservation	$	728	$	860	$	—			$	735
HBU/Recreation	$	2,210	$	2,255	$	2,015			$	2,190
Development Properties	$	—	$	—	$	—			$	—
Conservation Easements	$	—	$	—	$	—			$	—

Revenue, ($ millions)
Small Non-strategic	$	3	$	1	$	1			$	5
Large Non-strategic	$	—	$	—	$	120			$	120
Conservation	$	88	$	6	$	—			$	94
HBU/Recreation	$	18	$	18	$	8			$	44
Development Properties	$	—	$	—	$	—			$	—
Conservation Easements	$	—	$	—	$	—			$	—
	$	109	$	25	$	129	$	—	$	263

Basis of Real Estate Sold ⁽³⁾	$	83	$	9	$	39			$	131
	2014
	1st Qtr		2nd Qtr ⁽⁴⁾		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic	3,035		23,640		3,245		545		30,465
Large Non-strategic ⁽¹⁾	—		—		—		22,920		22,920
Conservation ⁽²⁾	3,415		11,875		2,455		48,270		66,015
HBU/Recreation	4,125		31,530		25,775		3,185		64,615
Development Properties	—		—		—		—		—
Conservation Easements	n/a		n/a		n/a		n/a		n/a
	10,575		67,045		31,475		74,920		184,015
Price per Acre
Small Non-strategic	$	1,325	$	790	$	1,030	$	1,300	$	880
Large Non-strategic	$	—	$	—	$	—	$	2,845	$	2,845
Conservation	$	1,685	$	635	$	1,230	$	950	$	945
HBU/Recreation	$	2,200	$	1,485	$	2,445	$	2,545	$	1,965
Development Properties	$	—	$	—	$	—	$	—	$	—
Conservation Easements	$	340	$	300	$	—	$	—	$	320

Revenue, ($ millions)
Small Non-strategic	$	4	$	19	$	3	$	1	$	27
Large Non-strategic	$	—	$	—	$	—	$	65	$	65
Conservation	$	6	$	8	$	3	$	46	$	63
HBU/Recreation	$	9	$	46	$	63	$	8	$	126
Development Properties	$	—	$	—	$	—	$	—	$	—
Conservation Easements	$	4	$	4	$	—	$	—	$	8
	$	23	$	77	$	69	$	120	$	289

Basis of Real Estate Sold ⁽³⁾	$	6	$	25	$	29	$	69	$	129

Exhibit 99.2

Plum Creek Timber Company, Inc.

Notes to Land Sale Statistics

(Unaudited)


(1)	During the third quarter of 2015, the company sold 97,715 acres of Large Non-strategic lands located in Florida for $120 million. During the fourth quarter of 2014, the company sold 15,185 acres of Large Non-strategic lands located in Alabama for $36.2 million and 7,735 acres of Large Non-strategic lands located in Oregon for $29.0 million.


(2)	During the first quarter of 2015, the company sold 117,400 acres in Montana for $85.1 million. During the fourth quarter of 2014, the company sold 47,800 acres in Washington for $45.6 million.

(3)

Includes $37.1 million in the third quarter of 2015 for a 97,715 acre sale located in Florida and $71.8 million in the first quarter of 2015 for a 117,400 acre sale located in Montana. Also includes $50 million in the fourth quarter of 2014 for a 47,800 acre sale located in Washington, $4 million in the fourth quarter of 2014 for a 7,735 acre sale located in Oregon and $11.5 million in the fourth quarter of 2014 for a 15,185 Large Non-strategic sale located in Alabama. Includes $12 million in the second quarter of 2014 for a 49,400 acre sale located in Wisconsin.

(4) During the second quarter of 2014, the company sold approximately 49,400 acres in Wisconsin for $45.3 million. The transaction consisted of approximately 22,400 acres of HBU/Recreation property with an estimated value of $28.7 million, approximately 17,000 acres of Small Non-strategic property with an estimated value of $11.6 million, and approximately 10,000 acres of Conservation property with an estimated value of $5.0 million.

Exhibit 99.2

Plum Creek Timber Company, Inc.

Segment Data - Adjusted EBITDA

Reconciliation of Operating Income and Net Cash

Provided by Operating Activities

(Unaudited)

We define Adjusted EBITDA as earnings from continuing operations, excluding Equity Earnings from the Timberland Venture, and before interest expense (including any gains or losses from extinguishment of debt), taxes, depreciation, depletion, amortization, and basis in real estate sold. In addition to including Equity Earnings or Loss from Real Estate Development Ventures in Adjusted EBITDA, we also include, as an add back to Operating Income for the Other Segment, our proportional share of depreciation, depletion, amortization, and basis in real estate sold from this equity method investment. Adjusted EBITDA is not considered a measure of financial performance under U.S. generally accepted accounting principles (U.S. GAAP) and the items excluded from Adjusted EBITDA are significant components of our consolidated financial statements.

We present Adjusted EBITDA as a supplemental performance measure because we believe it facilitates operating performance comparisons from period to period, and each business segment’s contribution to that performance, by eliminating non-cash charges to earnings, which can vary significantly by business segment. These non-cash charges include timber depletion, depreciation of fixed assets and the basis in real estate sold. We also use Adjusted EBITDA as a supplemental liquidity measure because we believe it is useful in measuring our ability to generate cash. In addition, we believe Adjusted EBITDA is commonly used by investors, lenders and rating agencies to assess our financial performance.

A reconciliation of Adjusted EBITDA to net income and net cash from operating activities, the most directly comparable U.S. GAAP performance and liquidity measures, is provided in the following schedules:



	Nine Months Ended September 30, 2015

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment ⁽¹⁾
Northern Resources	$	22		$	20	$	—	$	42
Southern Resources	96			62		—		158
Real Estate	114			—		131		245
Manufacturing	31			8		—		39
Energy and Natural Resources	15			7		—		22
Other	7			1		14		22
Other Costs and Eliminations	(60		)	1		—		(59		)
Other Unallocated Operating Income (Expense), net	3			—		—		3
Total	$	228		$	99	$	145	$	472

Reconciliation to Net Income ⁽²⁾
Equity Earnings from Timberland Venture	59
Interest Expense	(124		)
(Provision) Benefit for Income Taxes	—
Net Income	$	163

Reconciliation to Net Cash Provided By Operating Activities ⁽¹⁾
Net Cash Flows from Operations								$	422
Interest Expense								124
Amortization of Debt Costs								(1		)
Provision (Benefit) for Income Taxes								—
Distributions from Timberland Venture								(59		)
Distributions from Real Estate Development Ventures								(7		)
Equity Earnings, Depletion, Amortization, and Basis of Real Estate Sold from Real Estate Development Ventures								22
Deferred Income Taxes								5
Gain on Sale of Properties and Other Assets								—
Timber Deed Acquired								—
Pension Plan Contributions								—
Working Capital Changes								(25		)
Other								(9		)
Adjusted EBITDA								$	472

(1) Includes Equity Earnings from Real Estate Development Ventures ($7 million) in Operating Income for the Other Segment, along with our proportional share of depreciation, depletion, amortization ($1 million), and basis in real estate sold ($14 million) from this equity method investment.

(2) Includes reconciling items not allocated to segments for financial reporting purposes.

Exhibit 99.2



	Nine Months Ended September 30, 2014

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment ⁽¹⁾
Northern Resources	$	34		$	21	$	—	$	55
Southern Resources	99			59		—		158
Real Estate	91			1		60		152
Manufacturing	35			12		—		47
Energy and Natural Resources	18			6		—		24
Other	(5		)	1		2		(2		)
Other Costs and Eliminations	(48		)	1		—		(47		)
Other Unallocated Operating Income (Expense), net	2			—		—		2
Total	$	226		$	101	$	62	$	389

Reconciliation to Net Income ⁽²⁾
Equity Earnings from Timberland Venture	48
Interest Expense	(124		)
(Provision) Benefit for Income Taxes	(4		)
Net Income	$	146

Reconciliation to Net Cash Provided By Operating Activities ⁽¹⁾
Net Cash Flows from Operations								$	322
Interest Expense								124
Amortization of Debt Costs								(1		)
Provision (Benefit) for Income Taxes								4
Distributions from Timberland Venture								(57		)
Distributions from Real Estate Development Ventures								—
Equity Earnings, Depletion, Amortization and Basis of Real Estate Sold from Real Estate Development Ventures								(1		)
Deferred Income Taxes								(2		)
Gain on Sale of Properties and Other Assets								—
Timber Deed Acquired								—
Pension Plan Contributions								—
Working Capital Changes								(3		)
Other								3
Adjusted EBITDA								$	389

(1) Includes Equity Loss from Real Estate Development Ventures ($4 million) in Operating Income for the Other Segment, along with our proportional share of depreciation, depletion, amortization ($1 million), and basis in real estate sold ($2 million) from this equity method investment.

(2) Includes reconciling items not allocated to segments for financial reporting purposes.

Exhibit 99.2



	Quarter Ended September 30, 2015

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment ⁽¹⁾
Northern Resources	$	6		$	7	$	—	$	13
Southern Resources	33			21		—		54
Real Estate	84			—		39		123
Manufacturing	8			3		—		11
Energy and Natural Resources	5			3		—		8
Other	6			1		8		15
Other Costs and Eliminations	(21		)	—		—		(21		)
Other Unallocated Operating Income (Expense), net	—			—		—		—
Total	$	121		$	35	$	47	$	203

Reconciliation to Net Income ⁽²⁾
Equity Earnings from Timberland Venture	19
Interest Expense	(41		)
(Provision) Benefit for Income Taxes	1
Net Income	$	100

Reconciliation to Net Cash Provided By Operating Activities ⁽¹⁾
Net Cash Flows from Operations								$	195
Interest Expense								41
Amortization of Debt Costs								—
Provision (Benefit) for Income Taxes								(1		)
Distributions from Timberland Venture								(29		)
Distributions from Real Estate Development Ventures								(6		)
Equity Earnings, Depletion, Amortization, and Basis of Real Estate Sold from Real Estate Development Ventures								15
Deferred Income Taxes								3
Gain on Sale of Properties and Other Assets								—
Timber Deed Acquired								—
Pension Plan Contributions								—
Working Capital Changes								(10		)
Other								(5		)
Adjusted EBITDA								$	203

(1) Includes Equity Earnings from Real Estate Development Ventures ($6 million) in Operating Income for the Other Segment, along with our proportional share of depreciation, depletion, amortization ($1 million), and basis in real estate sold ($8 million) from this equity method investment.

(2) Includes reconciling items not allocated to segments for financial reporting purposes.

Exhibit 99.2



	Quarter Ended September 30, 2014

	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment ⁽¹⁾
Northern Resources	$	13		$	7	$	—	$	20
Southern Resources	35			22		—		57
Real Estate	34			1		29		64
Manufacturing	16			3		—		19
Energy and Natural Resources	6			2		—		8
Other	(1		)	—		2		1
Other Costs and Eliminations	(13		)	—		—		(13		)
Other Unallocated Operating Income (Expense), net	—			—		—		—
Total	$	90		$	35	$	31	$	156

Reconciliation to Net Income ⁽²⁾
Equity Earnings from Timberland Venture	16
Interest Expense	(41		)
(Provision) Benefit for Income Taxes	(4		)
Net Income	$	61

Reconciliation to Net Cash Provided By Operating Activities ⁽¹⁾
Net Cash Flows from Operations								$	133
Interest Expense								41
Amortization of Debt Costs								—
Provision (Benefit) for Income Taxes								4
Distributions from Timberland Venture								(29		)
Distributions from Real Estate Development Ventures								—
Equity Earnings, Depletion, Amortization, and Basis of Real Estate Sold from Real Estate Development Ventures								1
Deferred Income Taxes								(2		)
Gain on Sale of Properties and Other Assets								—
Timber Deed Acquired								—
Pension Plan Contributions								—
Working Capital Changes								4
Other								4
Adjusted EBITDA								$	156

(1) Includes Equity Loss from Real Estate Development Ventures ($1 million) in Operating Income for the Other Segment, along with our proportional share of depreciation, depletion, amortization ($0), and basis in real estate sold ($2 million) from this equity method investment.

(2) Includes reconciling items not allocated to segments for financial reporting purposes.

PLUM CREEK TIMBER CO INC - FORM 8-K - EX-99.2 - SUPPLEMENTAL FINANCIAL INFORMATION - October 26, 2015

Attached files

PLUM CREEK TIMBER CO INC Reports