v3.24.2
BUSINESS SEGMENTS
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
BUSINESS SEGMENTS

NOTE 2: BUSINESS SEGMENTS

We are principally engaged in growing and harvesting timber; maximizing the value of our acreage through the sale of higher and better use (HBU) properties; monetizing the value of surface and subsurface assets through leases and royalties; and manufacturing, distributing and selling products made from trees. Our business segments are organized based primarily on products and services which include:

●
Timberlands – Logs, timber, recreational leases and other products;
●
Real Estate, Energy and Natural Resources (Real Estate & ENR) – Real Estate (sales of timberlands) and ENR (rights to explore for and extract hard minerals, construction materials, natural gas production and 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

 

 

YEAR-TO-DATE ENDED

 

DOLLAR AMOUNTS IN MILLIONS

 

JUNE 2024

 

 

JUNE 2023

 

 

JUNE 2024

 

 

JUNE 2023

 

Sales to unaffiliated customers:

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

409

 

 

$

417

 

 

$

796

 

 

$

879

 

Real Estate & ENR

 

 

109

 

 

 

80

 

 

 

216

 

 

 

181

 

Wood Products

 

 

1,421

 

 

 

1,500

 

 

 

2,723

 

 

 

2,818

 

 

 

1,939

 

 

 

1,997

 

 

 

3,735

 

 

 

3,878

 

Intersegment sales:

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

 

146

 

 

 

150

 

 

 

280

 

 

 

292

 

 

 

 

 

 

 

 

 

 

 

 

 

Total sales

 

 

2,085

 

 

 

2,147

 

 

 

4,015

 

 

 

4,170

 

Intersegment eliminations

 

 

(146

)

 

 

(150

)

 

 

(280

)

 

 

(292

)

Total

 

$

1,939

 

 

$

1,997

 

 

$

3,735

 

 

$

3,878

 

Net contribution (charge) to earnings:

 

 

 

 

 

 

 

 

 

 

 

 

Timberlands

 

$

81

 

 

$

104

 

 

$

161

 

 

$

224

 

Real Estate & ENR

 

 

59

 

 

 

52

 

 

 

119

 

 

 

105

 

Wood Products

 

 

196

 

 

 

218

 

 

 

324

 

 

 

313

 

 

 

336

 

 

 

374

 

 

 

604

 

 

 

642

 

Unallocated items(1)

 

 

(63

)

 

 

(49

)

 

 

(130

)

 

 

(78

)

Net contribution to earnings

 

 

273

 

 

 

325

 

 

 

474

 

 

 

564

 

Interest expense, net of capitalized interest

 

 

(67

)

 

 

(70

)

 

 

(134

)

 

 

(136

)

Earnings before income taxes

 

 

206

 

 

 

255

 

 

 

340

 

 

 

428

 

Income taxes

 

 

(33

)

 

 

(25

)

 

 

(53

)

 

 

(47

)

Net earnings

 

$

173

 

 

$

230

 

 

$

287

 

 

$

381

 
(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 post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other.