Attached files
| file | filename |
|---|---|
| 8-K - 8-K - WEYERHAEUSER CO | wyq1188kearningsrelease.htm |
| EX-99.1 - EXHIBIT 99.1 - WEYERHAEUSER CO | wy2018q1ex-991.htm |
Weyerhaeuser Company | Exhibit 99.2 | ||||||||||
Q1.2018 Analyst Package | |||||||||||
Preliminary results (unaudited) | |||||||||||
Consolidated Statement of Operations | |||||||||||
in millions | Q4 | Q1 | |||||||||
December 31, 2017 | March 31, 2018 | March 31, 2017 | |||||||||
Net sales | $ | 1,823 | $ | 1,865 | $ | 1,693 | |||||
Cost of products sold | 1,316 | 1,348 | 1,272 | ||||||||
Gross margin | 507 | 517 | 421 | ||||||||
Selling expenses | 21 | 23 | 22 | ||||||||
General and administrative expenses | 72 | 78 | 87 | ||||||||
Research and development expenses | 2 | 2 | 4 | ||||||||
Charges for integration and restructuring, closures and asset impairments | 16 | 2 | 13 | ||||||||
Charges (recoveries) for product remediation | 50 | (20 | ) | — | |||||||
Other operating costs (income), net | (130 | ) | 28 | 2 | |||||||
Operating income | 476 | 404 | 293 | ||||||||
Non-operating pension and other postretirement benefit (costs) credits | (16 | ) | (24 | ) | (22 | ) | |||||
Interest income and other | 10 | 12 | 9 | ||||||||
Interest expense, net of capitalized interest | (96 | ) | (93 | ) | (99 | ) | |||||
Earnings before income taxes | 374 | 299 | 181 | ||||||||
Income taxes | (103 | ) | (30 | ) | (24 | ) | |||||
Net earnings | $ | 271 | $ | 269 | $ | 157 | |||||
Per Share Information | |||||||||||
Q4 | Q1 | ||||||||||
December 31, 2017 | March 31, 2018 | March 31, 2017 | |||||||||
Earnings per share, basic and diluted | $ | 0.36 | $ | 0.35 | $ | 0.21 | |||||
Dividends paid per common share | $ | 0.32 | $ | 0.32 | $ | 0.31 | |||||
Weighted average shares outstanding (in thousands): | |||||||||||
Basic | 755,409 | 756,815 | 750,665 | ||||||||
Diluted | 758,463 | 759,462 | 754,747 | ||||||||
Common shares outstanding at end of period (in thousands) | 755,223 | 756,700 | 751,411 | ||||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)* | |||||||||||
in millions | Q4 | Q1 | |||||||||
December 31, 2017 | March 31, 2018 | March 31, 2017 | |||||||||
Net earnings | $ | 271 | $ | 269 | $ | 157 | |||||
Non-operating pension and other postretirement benefit costs (credits) | 16 | 24 | 22 | ||||||||
Interest income and other | (10 | ) | (12 | ) | (9 | ) | |||||
Interest expense, net of capitalized interest | 96 | 93 | 99 | ||||||||
Income taxes | 103 | 30 | 24 | ||||||||
Operating income | 476 | 404 | 293 | ||||||||
Depreciation, depletion and amortization | 127 | 120 | 133 | ||||||||
Basis of real estate sold | 33 | 12 | 14 | ||||||||
Unallocated pension service costs | 1 | — | 2 | ||||||||
Special items | (86 | ) | 8 | 12 | |||||||
Adjusted EBITDA* | $ | 551 | $ | 544 | $ | 454 | |||||
*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs, and special items. Adjusted EBITDA excludes results from joint ventures. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results. | |||||||||||
Page 1 of 8
Weyerhaeuser Company | Total Company Statistics | ||||||||||
Q1.2018 Analyst Package | |||||||||||
Preliminary results (unaudited) | |||||||||||
Special Items Included in Net Earnings (Income Tax Affected) | |||||||||||
in millions | Q4 | Q1 | |||||||||
December 31, 2017 | March 31, 2018 | March 31, 2017 | |||||||||
Net earnings | $ | 271 | $ | 269 | $ | 157 | |||||
Plum Creek merger and integration-related costs | 12 | — | 10 | ||||||||
Gain on sale of timberlands | (99 | ) | — | — | |||||||
Environmental remediation charges (recoveries) | (26 | ) | 21 | — | |||||||
Countervailing and antidumping duties charges (credits)(1) | (7 | ) | — | — | |||||||
Product remediation charges (recoveries) | 31 | (15 | ) | — | |||||||
Tax adjustments, including enactment of tax legislation | 52 | — | — | ||||||||
Net earnings before special items | $ | 234 | $ | 275 | $ | 167 | |||||
Q4 | Q1 | ||||||||||
December 31, 2017 | March 31, 2018 | March 31, 2017 | |||||||||
Net earnings per diluted share | $ | 0.36 | $ | 0.35 | $ | 0.21 | |||||
Plum Creek merger and integration-related costs | 0.02 | — | 0.01 | ||||||||
Gain on sale of timberlands | (0.14 | ) | — | — | |||||||
Environmental remediation charges (recoveries) | (0.03 | ) | 0.03 | — | |||||||
Countervailing and antidumping duties charges (credits)(1) | (0.01 | ) | — | — | |||||||
Product remediation charges (recoveries) | 0.04 | (0.02 | ) | — | |||||||
Tax adjustments, including enactment of tax legislation | 0.07 | — | — | ||||||||
Net earnings per diluted share before special items | $ | 0.31 | $ | 0.36 | $ | 0.22 | |||||
(1)As of first quarter 2018, countervailing and anti-dumping duties are no longer reported as a special item. | |||||||||||
Selected Total Company Items | |||||||||||
in millions | Q4 | Q1 | |||||||||
December 31, 2017 | March 31, 2018 | March 31, 2017 | |||||||||
Pension and postretirement costs: | |||||||||||
Pension and postretirement service costs | $ | 9 | $ | 10 | $ | 10 | |||||
Non-operating pension and other postretirement benefit costs (credits) | 16 | 24 | 22 | ||||||||
Total company pension and postretirement costs | $ | 25 | $ | 34 | $ | 32 | |||||
Page 2 of 8
Weyerhaeuser Company | |||||||||||
Q1.2018 Analyst Package | |||||||||||
Preliminary results (unaudited) | |||||||||||
Consolidated Balance Sheet | |||||||||||
in millions | December 31, 2017 | March 31, 2018 | March 31, 2017 | ||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | 824 | $ | 598 | $ | 455 | |||||
Receivables, less allowances | 396 | 481 | 472 | ||||||||
Receivables for taxes | 14 | 24 | 10 | ||||||||
Inventories | 383 | 445 | 386 | ||||||||
Prepaid expenses and other current assets | 98 | 118 | 142 | ||||||||
Current restricted financial investments held by variable interest entities | — | 253 | — | ||||||||
Total current assets | 1,715 | 1,919 | 1,465 | ||||||||
Property and equipment, net | 1,618 | 1,573 | 1,544 | ||||||||
Construction in progress | 225 | 275 | 230 | ||||||||
Timber and timberlands at cost, less depletion | 12,954 | 12,888 | 14,218 | ||||||||
Minerals and mineral rights, less depletion | 308 | 306 | 317 | ||||||||
Goodwill | 40 | 40 | 40 | ||||||||
Deferred tax assets | 268 | 244 | 287 | ||||||||
Other assets | 316 | 278 | 285 | ||||||||
Restricted financial investments held by variable interest entities | 615 | 362 | 615 | ||||||||
Total assets | $ | 18,059 | $ | 17,885 | $ | 19,001 | |||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current maturities of long-term debt | $ | 62 | $ | — | $ | 343 | |||||
Current debt (nonrecourse to the company) held by variable interest entities | 209 | 209 | — | ||||||||
Accounts payable | 249 | 245 | 227 | ||||||||
Accrued liabilities | 645 | 457 | 452 | ||||||||
Total current liabilities | 1,165 | 911 | 1,022 | ||||||||
Long-term debt | 5,930 | 5,928 | 6,263 | ||||||||
Long-term debt (nonrecourse to the company) held by variable interest entities | 302 | 302 | 511 | ||||||||
Deferred pension and other postretirement benefits | 1,487 | 1,454 | 1,287 | ||||||||
Deposit received from contribution of timberlands to related party | — | — | 422 | ||||||||
Other liabilities | 276 | 299 | 281 | ||||||||
Total liabilities | 9,160 | 8,894 | 9,786 | ||||||||
Total equity | 8,899 | 8,991 | 9,215 | ||||||||
Total liabilities and equity | $ | 18,059 | $ | 17,885 | $ | 19,001 | |||||
Page 3 of 8
Weyerhaeuser Company | |||||||||||
Q1.2018 Analyst Package | |||||||||||
Preliminary results (unaudited) | |||||||||||
Consolidated Statements of Cash Flows | |||||||||||
in millions | Q4 | Q1 | |||||||||
December 31, 2017 | March 31, 2018 | March 31, 2017 | |||||||||
Cash flows from operations: | |||||||||||
Net earnings | $ | 271 | $ | 269 | $ | 157 | |||||
Noncash charges (credits) to income: | |||||||||||
Depreciation, depletion and amortization | 127 | 120 | 133 | ||||||||
Basis of real estate sold | 33 | 12 | 14 | ||||||||
Deferred income taxes, net | 35 | 10 | 3 | ||||||||
Pension and other postretirement benefits | 25 | 34 | 32 | ||||||||
Share-based compensation expense | 11 | 9 | 10 | ||||||||
Charges for impairments of assets | 1 | — | — | ||||||||
Net gain on sale of southern timberlands | (99 | ) | — | — | |||||||
Foreign exchange transaction (gains) losses | (1 | ) | 2 | 3 | |||||||
Change in: | |||||||||||
Receivables, less allowances | 78 | (83 | ) | (70 | ) | ||||||
Receivables and payables for taxes | 66 | 5 | (36 | ) | |||||||
Inventories | (43 | ) | (66 | ) | (28 | ) | |||||
Prepaid expenses | (3 | ) | (5 | ) | (9 | ) | |||||
Accounts payable and accrued liabilities | (78 | ) | (173 | ) | (137 | ) | |||||
Pension and postretirement benefit contributions and payments | (19 | ) | (16 | ) | (22 | ) | |||||
Other | (50 | ) | 18 | (15 | ) | ||||||
Net cash from operations | $ | 354 | $ | 136 | $ | 35 | |||||
Cash flows from investing activities: | |||||||||||
Purchases of property and equipment(1) | $ | (145 | ) | $ | (61 | ) | $ | (52 | ) | ||
Timberlands reforestation costs(1) | (15 | ) | (20 | ) | (23 | ) | |||||
Proceeds from sale of nonstrategic assets | 6 | 2 | 8 | ||||||||
Proceeds from sale of southern timberlands | 203 | — | — | ||||||||
Proceeds from redemption of ownership in related party | 108 | — | — | ||||||||
Other | 18 | 3 | (1 | ) | |||||||
Cash from (used in) investing activities | $ | 175 | $ | (76 | ) | $ | (68 | ) | |||
Cash flows from financing activities: | |||||||||||
Cash dividends on common shares | $ | (242 | ) | $ | (242 | ) | $ | (233 | ) | ||
Payments of long-term debt | — | (62 | ) | — | |||||||
Proceeds from exercise of stock options | 39 | 25 | 55 | ||||||||
Other | 1 | (7 | ) | (10 | ) | ||||||
Cash from (used in) financing activities | $ | (202 | ) | $ | (286 | ) | $ | (188 | ) | ||
Net change in cash and cash equivalents | $ | 327 | $ | (226 | ) | $ | (221 | ) | |||
Cash and cash equivalents at beginning of period | 497 | 824 | 676 | ||||||||
Cash and cash equivalents at end of period | $ | 824 | $ | 598 | $ | 455 | |||||
Cash paid during the period for: | |||||||||||
Interest, net of amount capitalized | $ | 66 | $ | 105 | $ | 120 | |||||
Income taxes | $ | 40 | $ | 17 | $ | 59 | |||||
(1) Purchases for property and equipment and Timberlands reforestation costs represent total Company cash spent for capital expenditures. | |||||||||||
Page 4 of 8
Weyerhaeuser Company | Timberlands Segment | |||||||||||
Q1.2018 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Sales to unaffiliated customers | $ | 496 | $ | 505 | $ | 486 | ||||||
Intersegment sales | 218 | 228 | 202 | |||||||||
Total net sales | 714 | 733 | 688 | |||||||||
Cost of products sold | 531 | 526 | 519 | |||||||||
Gross margin | 183 | 207 | 169 | |||||||||
Selling expenses | 1 | 1 | 1 | |||||||||
General and administrative expenses | 19 | 23 | 24 | |||||||||
Research and development expenses | 2 | 2 | 3 | |||||||||
Other operating income, net | (104 | ) | (8 | ) | (7 | ) | ||||||
Operating income and Net contribution to earnings | $ | 265 | $ | 189 | $ | 148 | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Operating income | $ | 265 | $ | 189 | $ | 148 | ||||||
Depreciation, depletion and amortization | 86 | 79 | 94 | |||||||||
Special items | (99 | ) | — | — | ||||||||
Adjusted EBITDA* | $ | 252 | $ | 268 | $ | 242 | ||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) | ||||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Gain on sale of timberlands | $ | 99 | $ | — | $ | — | ||||||
Selected Segment Items | ||||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Total decrease (increase) in working capital(1) | $ | (15 | ) | $ | (40 | ) | $ | (18 | ) | |||
Cash spent for capital expenditures | $ | (36 | ) | $ | (28 | ) | $ | (30 | ) | |||
(1) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined. | ||||||||||||
Segment Statistics(2)(3) | ||||||||||||
Q4.2017 | Q1.2018 | Q1.2017 | ||||||||||
Third Party Net Sales (millions) | Delivered logs: | |||||||||||
West | $ | 242 | $ | 266 | $ | 225 | ||||||
South | 165 | 157 | 148 | |||||||||
North | 27 | 25 | 27 | |||||||||
Other | 11 | 14 | 20 | |||||||||
Total delivered logs | 445 | 462 | 420 | |||||||||
Stumpage and pay-as-cut timber | 21 | 15 | 12 | |||||||||
Products from international operations | — | — | 19 | |||||||||
Recreational and other lease revenue | 14 | 14 | 14 | |||||||||
Other revenue | 16 | 14 | 21 | |||||||||
Total | $ | 496 | $ | 505 | $ | 486 | ||||||
Delivered Logs Third Party Sales Realizations (per ton) | West | $ | 121.41 | $ | 131.59 | $ | 104.27 | |||||
South | $ | 34.53 | $ | 34.83 | $ | 34.48 | ||||||
North | $ | 60.77 | $ | 60.79 | $ | 59.57 | ||||||
Delivered Logs Third Party Sales Volumes (tons, thousands) | West | 1,992 | 2,019 | 2,157 | ||||||||
South | 4,790 | 4,510 | 4,293 | |||||||||
North | 439 | 404 | 454 | |||||||||
Other | 232 | 317 | 510 | |||||||||
Fee Harvest Volumes (tons, thousands) | West | 2,544 | 2,443 | 2,657 | ||||||||
South | 7,350 | 6,751 | 6,373 | |||||||||
North | 635 | 549 | 622 | |||||||||
Other | — | — | 371 | |||||||||
(2) The Western region includes Washington and Oregon. The Southern region includes Virginia, North Carolina, South Carolina, Florida, Georgia, Alabama, Mississippi, Louisiana, Arkansas, Texas and Oklahoma. The Northern region includes West Virginia, Maine, New Hampshire, Vermont, Michigan, Wisconsin and Montana. Other includes our Canadian operations and managed Twin Creeks operations (our management agreement for the Twin Creeks Venture began in April 2016 and terminated in December 2017). | ||||||||||||
(3) Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes. | ||||||||||||
Page 5 of 8
Weyerhaeuser Company | Real Estate, Energy and Natural Resources Segment | |||||||||||
Q1.2018 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Net sales | $ | 100 | $ | 51 | $ | 53 | ||||||
Cost of products sold | 43 | 19 | 20 | |||||||||
Gross margin | 57 | 32 | 33 | |||||||||
General and administrative expenses | 6 | 7 | 7 | |||||||||
Other operating costs (income), net | 1 | — | — | |||||||||
Operating income and net contribution to earnings | $ | 50 | $ | 25 | $ | 26 | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Operating income | $ | 50 | $ | 25 | $ | 26 | ||||||
Depreciation, depletion and amortization | 4 | 4 | 3 | |||||||||
Basis of real estate sold | 33 | 12 | 14 | |||||||||
Adjusted EBITDA* | $ | 87 | $ | 41 | $ | 43 | ||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Selected Segment Items | ||||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Cash spent for capital expenditures | $ | — | $ | — | $ | — | ||||||
Segment Statistics | ||||||||||||
Q4.2017 | Q1.2018 | Q1.2017 | ||||||||||
Net Sales (millions) | Real Estate | $ | 80 | $ | 34 | $ | 37 | |||||
Energy and Natural Resources | 20 | 17 | 16 | |||||||||
Total | $ | 100 | $ | 51 | $ | 53 | ||||||
Acres Sold | Real Estate | 38,226 | 21,771 | 13,257 | ||||||||
Price per Acre | Real Estate | $ | 2,076 | $ | 1,539 | $ | 2,403 | |||||
Page 6 of 8
Weyerhaeuser Company | Wood Products Segment | |||||||||||
Q1.2018 Analyst Package | ||||||||||||
Preliminary results (unaudited) | ||||||||||||
Segment Statement of Operations | ||||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Net sales | $ | 1,228 | $ | 1,309 | $ | 1,154 | ||||||
Cost of products sold | 947 | 1,005 | 926 | |||||||||
Gross margin | 281 | 304 | 228 | |||||||||
Selling expenses | 20 | 21 | 21 | |||||||||
General and administrative expenses | 32 | 34 | 32 | |||||||||
Research and development expenses | — | — | 1 | |||||||||
Charges for integration and restructuring, closures and asset impairments | 2 | 2 | 1 | |||||||||
Charges (recoveries) for product remediation | 50 | (20 | ) | — | ||||||||
Other operating costs (income), net | (3 | ) | (3 | ) | 1 | |||||||
Operating income and Net contribution to earnings | $ | 180 | $ | 270 | $ | 172 | ||||||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | ||||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Operating income | $ | 180 | $ | 270 | $ | 172 | ||||||
Depreciation, depletion and amortization | 37 | 36 | 35 | |||||||||
Special items | 41 | (20 | ) | — | ||||||||
Adjusted EBITDA* | $ | 258 | $ | 286 | $ | 207 | ||||||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | ||||||||||||
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax) | ||||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Countervailing and antidumping duties (charges) credits(1) | $ | 9 | $ | — | $ | — | ||||||
Product remediation (charges) recoveries | (50 | ) | 20 | — | ||||||||
Total | $ | (41 | ) | $ | 20 | $ | — | |||||
(1)As of first quarter 2018, countervailing and anti-dumping duties are no longer reported as a special item. | ||||||||||||
Selected Segment Items | ||||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Total decrease (increase) in working capital(1) | $ | (81 | ) | $ | (226 | ) | $ | (122 | ) | |||
Cash spent for capital expenditures | $ | (123 | ) | $ | (52 | ) | $ | (44 | ) | |||
(1) Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment. | ||||||||||||
Segment Statistics | ||||||||||||
in millions, except for third party sales realizations | Q4.2017 | Q1.2018 | Q1.2017 | |||||||||
Structural Lumber (volumes presented in board feet) | Third party net sales | $ | 517 | $ | 569 | $ | 478 | |||||
Third party sales realizations | $ | 466 | $ | 498 | $ | 413 | ||||||
Third party sales volumes(2) | 1,110 | 1,140 | 1,158 | |||||||||
Production volumes | 1,118 | 1,160 | 1,152 | |||||||||
Engineered Solid Section (volumes presented in cubic feet) | Third party net sales | $ | 122 | $ | 129 | $ | 117 | |||||
Third party sales realizations | $ | 2,076 | $ | 2,088 | $ | 1,881 | ||||||
Third party sales volumes(2) | 5.9 | 6.2 | 6.2 | |||||||||
Production volumes | 5.8 | 6.3 | 6.3 | |||||||||
Engineered I-joists (volumes presented in lineal feet) | Third party net sales | $ | 85 | $ | 78 | $ | 73 | |||||
Third party sales realizations | $ | 1,561 | $ | 1,585 | $ | 1,481 | ||||||
Third party sales volumes(2) | 54 | 49 | 49 | |||||||||
Production volumes | 52 | 56 | 50 | |||||||||
Oriented Strand Board (volumes presented in square feet 3/8") | Third party net sales | $ | 233 | $ | 232 | $ | 203 | |||||
Third party sales realizations | $ | 335 | $ | 314 | $ | 263 | ||||||
Third party sales volumes(2) | 697 | 739 | 769 | |||||||||
Production volumes | 739 | 734 | 758 | |||||||||
Softwood Plywood (volumes presented in square feet 3/8") | Third party net sales | $ | 40 | $ | 50 | $ | 44 | |||||
Third party sales realizations | $ | 417 | $ | 438 | $ | 377 | ||||||
Third party sales volumes(2) | 95 | 115 | 118 | |||||||||
Production volumes | 86 | 97 | 97 | |||||||||
Medium Density Fiberboard (volumes presented in square feet 3/4") | Third party net sales | $ | 37 | $ | 43 | $ | 47 | |||||
Third party sales realizations | $ | 829 | $ | 839 | $ | 795 | ||||||
Third party sales volumes(2) | 45 | 51 | 59 | |||||||||
Production volumes | 50 | 50 | 56 | |||||||||
(2) Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business. | ||||||||||||
Page 7 of 8
Weyerhaeuser Company | Unallocated Items | ||||||||||
Q1.2018 Analyst Package | |||||||||||
Preliminary results (unaudited) | |||||||||||
Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as share-based compensation expense, pension and postretirement costs, foreign exchange transaction gains and losses and the elimination of intersegment profit in inventory and LIFO. | |||||||||||
Contribution to Earnings | |||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | ||||||||
Unallocated corporate function and variable compensation expense | $ | (18 | ) | $ | (18 | ) | $ | (19 | ) | ||
Liability classified share-based compensation | (2 | ) | — | (6 | ) | ||||||
Foreign exchange gains (losses) | 1 | (2 | ) | (3 | ) | ||||||
Elimination of intersegment profit in inventory and LIFO | (14 | ) | (21 | ) | (6 | ) | |||||
Charges for integration and restructuring, closures and asset impairments | (14 | ) | — | (12 | ) | ||||||
Other | 28 | (39 | ) | (7 | ) | ||||||
Operating income (loss) | (19 | ) | (80 | ) | (53 | ) | |||||
Non-operating pension and other postretirement benefit (costs) credits | (16 | ) | (24 | ) | (22 | ) | |||||
Interest income and other | 10 | 12 | 9 | ||||||||
Net contribution to earnings | $ | (25 | ) | $ | (92 | ) | $ | (66 | ) | ||
Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization* | |||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | ||||||||
Operating income (loss) | $ | (19 | ) | $ | (80 | ) | $ | (53 | ) | ||
Depreciation, depletion and amortization | — | 1 | 1 | ||||||||
Unallocated pension service costs | 1 | — | 2 | ||||||||
Special items | (28 | ) | 28 | 12 | |||||||
Adjusted EBITDA* | $ | (46 | ) | $ | (51 | ) | $ | (38 | ) | ||
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 1. | |||||||||||
Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax) | |||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | ||||||||
Plum Creek merger and integration-related costs | $ | (14 | ) | $ | — | $ | (12 | ) | |||
Environmental remediation insurance (charges) recoveries | 42 | (28 | ) | — | |||||||
Total | $ | 28 | $ | (28 | ) | $ | (12 | ) | |||
Unallocated Selected Items | |||||||||||
in millions | Q4.2017 | Q1.2018 | Q1.2017 | ||||||||
Cash spent for capital expenditures | $ | (1 | ) | $ | (1 | ) | $ | (1 | ) | ||
Page 8 of 8