Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Aug. 01, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'WEYERHAEUSER CO | ' |
Trading Symbol | 'WY | ' |
Entity Central Index Key | '0000106535 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 528,304,790 |
CONSOLIDATED_STATEMENT_OF_OPER
CONSOLIDATED STATEMENT OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net sales | $1,964 | $1,874 | $3,700 | $3,629 |
Cost of products sold | 1,499 | 1,453 | 2,860 | 2,825 |
Gross margin | 465 | 421 | 840 | 804 |
Selling expenses | 27 | 31 | 55 | 64 |
General and administrative expenses | 88 | 96 | 176 | 201 |
Research and development expenses | 7 | 8 | 14 | 15 |
Charges for restructuring, closures and impairments (Note 13) | 8 | 3 | 27 | 6 |
Other operating income, net (Note 14) | -65 | -10 | -140 | -28 |
Operating income | 400 | 293 | 708 | 546 |
Interest income and other | 11 | 8 | 20 | 18 |
Interest expense, net of capitalized interest | -83 | -80 | -166 | -162 |
Earnings before income taxes | 328 | 221 | 562 | 402 |
Income taxes (Note 15) | -59 | -36 | -109 | -75 |
Earnings from continuing operations | 269 | 185 | 453 | 327 |
Earnings from discontinued operations, net of income taxes (Note 2) | 22 | 13 | 32 | 15 |
Net earnings | 291 | 198 | 485 | 342 |
Dividends on preference shares | -11 | -2 | -22 | -2 |
Net earnings attributable to Weyerhaeuser common shareholders | $280 | $196 | $463 | $340 |
Earnings per share attributable to Weyerhaeuser common shareholders, basic (Note 5): | ' | ' | ' | ' |
Continuing operations | $0.44 | $0.33 | $0.73 | $0.59 |
Discontinued operations | $0.04 | $0.02 | $0.06 | $0.03 |
Net earnings per share | $0.48 | $0.35 | $0.79 | $0.62 |
Earnings per share attributable to Weyerhaeuser common shareholders, diluted (Note 5): | ' | ' | ' | ' |
Continuing operations | $0.43 | $0.33 | $0.73 | $0.58 |
Discontinued operations | $0.04 | $0.02 | $0.06 | $0.03 |
Net earnings per share | $0.47 | $0.35 | $0.79 | $0.61 |
Weighted average shares outstanding (in thousands) (Note 5): | ' | ' | ' | ' |
Basic | 586,061 | 552,855 | 585,491 | 549,159 |
Diluted | 589,766 | 557,588 | 589,542 | 554,301 |
CONSOLIDATED_STATEMENT_OF_COMP
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Consolidated net earnings attributable to Weyerhaeuser common shareholders | $280 | $196 | $463 | $340 |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation adjustments | 21 | -30 | -1 | -47 |
Actuarial gains, net of tax expense of $18, $26, $33 and $49 | 31 | 56 | 67 | 104 |
Prior service costs, net of tax benefit of $13, $3, $30 and $3 | -14 | -4 | -43 | -8 |
Unrealized gains on available-for-sale securities | 0 | 0 | 0 | 1 |
Total other comprehensive income | 38 | 22 | 23 | 50 |
Comprehensive income attributable to Weyerhaeuser common shareholders | $318 | $218 | $486 | $390 |
CONSOLIDATED_STATEMENT_OF_COMP1
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Tax expense of actuarial gains | $18 | $26 | $33 | $49 |
Tax benefit of prior service costs | ($13) | ($3) | ($30) | ($3) |
CONSOLIDATED_BALANCE_SHEET
CONSOLIDATED BALANCE SHEET (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $845 | $830 |
Receivables, less allowances of $4 and $4 | 590 | 518 |
Receivables for taxes | 37 | 101 |
Inventories (Note 6) | 596 | 542 |
Prepaid expenses | 106 | 117 |
Deferred tax assets | 128 | 130 |
Current assets of discontinued operations (Note 2) | 988 | 88 |
Total current assets | 3,290 | 2,326 |
Property and equipment, less accumulated depreciation of $6,428 and $6,327 | 2,599 | 2,689 |
Construction in progress | 157 | 112 |
Timber and timberlands at cost, less depletion charged to disposals (Note 3) | 6,571 | 6,580 |
Investments in and advances to equity affiliates | 188 | 190 |
Goodwill | 40 | 42 |
Deferred tax assets | 0 | 5 |
Other assets | 419 | 324 |
Restricted financial investments held by variable interest entities | 615 | 615 |
Noncurrent assets of discontinued operations (Note 2) | 1,827 | 1,694 |
Total assets | 15,706 | 14,577 |
Liabilities | ' | ' |
Notes payable | 0 | 2 |
Accounts payable | 335 | 343 |
Accrued liabilities (Note 8) | 597 | 629 |
Current liabilities of discontinued operations (Note 2) | 137 | 154 |
Total current liabilities | 1,069 | 1,128 |
Long-term debt (Note 9) | 4,891 | 4,891 |
Long-term debt (nonrecourse to the company) held by variable interest entities | 511 | 511 |
Deferred income taxes | 410 | 285 |
Deferred pension and other postretirement benefits | 422 | 516 |
Other liabilities | 334 | 382 |
Noncurrent liabilities of discontinued operations (Note 2) | 926 | 32 |
Commitments and contingencies (Note 10) | ' | ' |
Total liabilities | 8,563 | 7,745 |
Weyerhaeuser shareholders’ interest: | ' | ' |
Mandatory convertible preference shares, series A: $1.00 par value; $50.00 liquidation; authorized 40,000,000 shares; issued and outstanding: 13,800,000 shares | 14 | 14 |
Common shares: $1.25 par value; authorized 1,360,000,000 shares; issued and outstanding: 586,697,717 and 583,548,428 shares | 733 | 729 |
Other capital | 6,513 | 6,444 |
Retained earnings | 495 | 294 |
Cumulative other comprehensive loss (Note 11) | -663 | -686 |
Total Weyerhaeuser shareholders’ interest | 7,092 | 6,795 |
Noncontrolling interests | 2 | 3 |
Noncontrolling interests in discontinued operations (Note 2) | 49 | 34 |
Total equity | 7,143 | 6,832 |
Total liabilities and equity | $15,706 | $14,577 |
CONSOLIDATED_BALANCE_SHEET_Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Receivables, allowances | $4 | $4 |
Property and equipment, accumulated depreciation | $6,428 | $6,327 |
Common shares, par value | $1.25 | $1.25 |
Common shares, authorized | 1,360,000,000 | 1,360,000,000 |
Common shares, issued | 586,697,717 | 583,548,428 |
Common shares, outstanding | 586,697,717 | 583,548,428 |
6.375 percent Mandatory Convertible Preference Shares, Series A | ' | ' |
Preference shares, par value | $1 | $1 |
Preference shares, liquidation | $50 | $50 |
Preference shares, authorized | 40,000,000 | 40,000,000 |
Preference shares, issued | 13,800,000 | 13,800,000 |
Preference shares, outstanding | 13,800,000 | 13,800,000 |
CONSOLIDATED_STATEMENT_OF_CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Cash flows from operations: | ' | ' |
Net earnings | $485,000,000 | $342,000,000 |
Noncash charges (credits) to earnings: | ' | ' |
Depreciation, depletion and amortization | 252,000,000 | 223,000,000 |
Deferred income taxes, net | 125,000,000 | 49,000,000 |
Pension and other postretirement benefits (Note 7) | -91,000,000 | 52,000,000 |
Share-based compensation expense | 20,000,000 | 22,000,000 |
Charges for impairment of assets | 1,000,000 | 3,000,000 |
Net gains on dispositions of assets(1) | -46,000,000 | -21,000,000 |
Foreign exchange transaction losses (Note 14) | 2,000,000 | 8,000,000 |
Change in: | ' | ' |
Receivables less allowances | -48,000,000 | -120,000,000 |
Receivable for taxes | 64,000,000 | 52,000,000 |
Inventories | -54,000,000 | -36,000,000 |
Real estate and land | -107,000,000 | -121,000,000 |
Prepaid expenses | 0 | -14,000,000 |
Accounts payable and accrued liabilities | -97,000,000 | -32,000,000 |
Deposits on land positions and other assets | 8,000,000 | -10,000,000 |
Pension and postretirement contributions / benefit payments | -63,000,000 | -69,000,000 |
Other | -20,000,000 | -15,000,000 |
Net cash from operations | 431,000,000 | 313,000,000 |
Cash flows from investing activities: | ' | ' |
Property and equipment | -134,000,000 | -82,000,000 |
Timberlands reforestation | -25,000,000 | -21,000,000 |
Proceeds from sale of assets | 20,000,000 | 14,000,000 |
Net proceeds of investments held by special purpose entities | 0 | 22,000,000 |
Other | 0 | -4,000,000 |
Cash from investing activities | -139,000,000 | -71,000,000 |
Cash flows from financing activities: | ' | ' |
Net proceeds from issuance of common shares | 0 | 781,000,000 |
Net proceeds from issuance of preference shares | 0 | 669,000,000 |
Net proceeds from issuance of Weyerhaeuser Real Estate Company (WRECO) debt (Note 2) | 887,000,000 | 0 |
Deposit of WRECO debt proceeds into escrow (Note 2) | -887,000,000 | 0 |
Cash dividends on common shares | -257,000,000 | -202,000,000 |
Cash dividends on preference shares | -11,000,000 | 0 |
Change in book overdrafts | -6,000,000 | 7,000,000 |
Payments on debt | 0 | -177,000,000 |
Exercises of stock options | 54,000,000 | 132,000,000 |
Other | 1,000,000 | 12,000,000 |
Cash from financing activities | -219,000,000 | 1,222,000,000 |
Net change in cash and cash equivalents | 73,000,000 | 1,464,000,000 |
Cash and cash equivalents at beginning of period | 835,000,000 | 898,000,000 |
Cash and cash equivalents at end of period | 908,000,000 | 2,362,000,000 |
Cash paid (received) during the period for: | ' | ' |
Interest, net of amount capitalized of $10 and $10 | 153,000,000 | 166,000,000 |
Income taxes | ($45,000,000) | ($6,000,000) |
CONSOLIDATED_STATEMENT_OF_CASH1
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Interest, amount capitalized | $10 | $10 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended | |
Jun. 30, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
BASIS OF PRESENTATION | ' | |
BASIS OF PRESENTATION | ||
We are a corporation that has elected to be taxed as a real estate investment trust (REIT). We expect to derive most of our REIT income from investments in timberlands, including the sale of standing timber through pay-as-cut sales contracts. REIT income can be distributed to shareholders without first paying corporate level tax, substantially eliminating the double taxation on income. A significant portion of our timberland segment earnings receives this favorable tax treatment. We are, however, subject to corporate taxes on built-in-gains (the excess of fair market value over tax basis at January 1, 2010) on sales of real property (other than standing timber) held by the REIT during the first 10 years following the REIT conversion. We continue to be required to pay federal corporate income taxes on earnings of our Taxable REIT Subsidiary (TRS), which principally includes our manufacturing businesses and the portion of our Timberlands segment income included in the TRS. | ||
Our consolidated financial statements provide an overall view of our results and financial condition. They include our accounts and the accounts of entities we control, including: | ||
• | majority-owned domestic and foreign subsidiaries and | |
• | variable interest entities in which we are the primary beneficiary. | |
They do not include our intercompany transactions and accounts, which are eliminated, and noncontrolling interests are presented as a separate component of equity. | ||
We account for investments in and advances to unconsolidated equity affiliates using the equity method, with taxes provided on undistributed earnings. This means that we record earnings and accrue taxes in the period earnings are recognized by our unconsolidated equity affiliates. | ||
Throughout these Notes to Consolidated Financial Statements, unless specified otherwise, references to “Weyerhaeuser,” “we” and “our” refer to the consolidated company. | ||
The accompanying unaudited Consolidated Financial Statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Except as otherwise disclosed in these Notes to Consolidated Financial Statements, such adjustments are of a normal, recurring nature. The Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements; certain disclosures normally provided in accordance with accounting principles generally accepted in the United States have been omitted. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2013. Results of operations for interim periods should not be regarded as necessarily indicative of the results that may be expected for the full year. | ||
RECLASSIFICATIONS | ||
We have reclassified certain balances and results from the prior year to be consistent with our 2014 reporting. This makes year-to-year comparisons easier. Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders’ interest. Our reclassifications record our variable interest entities assets and liabilities into their respective line items on our Consolidated Balance Sheet and to present the results of operations discontinued in 2014 separately on our Consolidated Statement of Operations, Consolidated Balance Sheet and in the related footnotes. Note 2: Discontinued Operations provides information about our discontinued operations. | ||
NEW ACCOUNTING PRONOUNCEMENTS | ||
In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-11, which provides guidance on the presentation of unrecognized tax benefits, reflecting the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses or tax credit carryforwards exist. Our prospective adoption of this guidance in first quarter 2014 did not have a material effect on our results of operations, financial position or cash flows. | ||
In April 2014, FASB issued ASU 2014-08, an amendment to the current model of the classification and presentation of discontinued operations and asset disposals that changes the definition of a discontinued operation to include only disposals of components of an entity that represent a strategic shift that has (or will have) a material effect on an entity's financial results. The new standard is effective for all disposals or classifications as assets held for sale for fiscal periods starting after December 15, 2014 and early adoption is permitted. We expect to adopt ASU 2014-08 on January 1, 2015 and have determined that its adoption will not have a material impact on our consolidated financial statements and related disclosures at that time. | ||
In May 2014, FASB issued ASU 2014-09, a comprehensive new revenue recognition model that requires an entity to recognize revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The new standard is effective for us on January 1, 2017 and early adoption is not permitted. We may use either the retrospective or cumulative effect transition method. We are evaluating the impact that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor determined the effect of the standard on our ongoing financial reporting. |
DISCONTINUED_OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | |||||||||||||||
DISCONTINUED OPERATIONS | ' | |||||||||||||||
DISCONTINUED OPERATIONS | ||||||||||||||||
On July 7, 2014, we completed the following set of transactions: | ||||||||||||||||
• | a series of transfers and other transactions resulting in our homebuilding and real estate development business becoming wholly-owned by TRI Pointe Homes, Inc. (TRI Pointe); and | |||||||||||||||
• | the distribution of shares of Weyerhaeuser Real Estate Company (WRECO) to our shareholders in exchange for 59 million shares of our common stock. | |||||||||||||||
Collectively, these transactions are referred to as the “Real Estate Divestiture”. | ||||||||||||||||
We also received $712 million of cash proceeds in connection with the Real Estate Divestiture and expect to record a net gain of approximately $1 billion in third quarter 2014. | ||||||||||||||||
Prior to the distribution of WRECO shares to our shareholders, WRECO was a wholly owned subsidiary. Concurrent with the distribution to shareholders, WRECO ceased being a subsidiary. Discontinued operations relates to WRECO and was previously reported under the Real Estate segment and Unallocated Items. | ||||||||||||||||
The following table summarizes the components of net sales and net earnings from discontinued operations. | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Net sales from discontinued operations | $ | 317 | $ | 267 | $ | 565 | $ | 463 | ||||||||
Income from operations | $ | 27 | $ | 19 | $ | 43 | $ | 23 | ||||||||
Income taxes | (5 | ) | (6 | ) | (11 | ) | (8 | ) | ||||||||
Net earnings from discontinued operations | $ | 22 | $ | 13 | $ | 32 | $ | 15 | ||||||||
During June 2014, our wholly owned subsidiary, WRECO, issued $450 million of unsecured and unsubordinated senior obligations bearing an interest rate of 4.375 percent due June 15, 2019 and $450 million of unsecured and unsubordinated senior obligations bearing an interest rate of 5.875 percent due June 15, 2024, which are included in "Noncurrent liabilities of discontinued operations" in our Consolidated Balance Sheet and were transferred along with other WRECO assets and liabilities as part of the Real Estate Divestiture. The net proceeds after deducting the discount were $887 million and are included in "Current assets of discontinued operations" in our Consolidated Balance Sheet. | ||||||||||||||||
The following table shows carrying values for assets and liabilities classified as discontinued operations as of June 30, 2014 and December 31, 2013. | ||||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | JUNE 30, | DECEMBER 31, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 63 | $ | 5 | ||||||||||||
Restricted cash | 887 | — | ||||||||||||||
Receivables, less discounts and allowances | 19 | 51 | ||||||||||||||
Prepaid expenses | 10 | 11 | ||||||||||||||
Deferred tax assets | 9 | 21 | ||||||||||||||
Total current assets | 988 | 88 | ||||||||||||||
Property and equipment, net | 16 | 15 | ||||||||||||||
Real estate in process of development and for sale | 974 | 851 | ||||||||||||||
Land being processed for development | 609 | 596 | ||||||||||||||
Investments in and advances to equity affiliates | 15 | 21 | ||||||||||||||
Deferred tax assets | 120 | 115 | ||||||||||||||
Other assets | 93 | 96 | ||||||||||||||
Total noncurrent assets | 1,827 | 1,694 | ||||||||||||||
Total assets | $ | 2,815 | $ | 1,782 | ||||||||||||
Liabilities | ||||||||||||||||
Accounts payable | 53 | 41 | ||||||||||||||
Accrued liabilities | 84 | 113 | ||||||||||||||
Total current liabilities | 137 | 154 | ||||||||||||||
Long-term debt | 887 | — | ||||||||||||||
Long-term debt (nonrecourse to the company) held by variable interest entities | 8 | 5 | ||||||||||||||
Other liabilities | 31 | 27 | ||||||||||||||
Total noncurrent liabilities | 926 | 32 | ||||||||||||||
Total liabilities | $ | 1,063 | $ | 186 | ||||||||||||
Noncontrolling interests | $ | 49 | $ | 34 | ||||||||||||
LONGVIEW_TIMBER_PURCHASE
LONGVIEW TIMBER PURCHASE | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Business Combinations [Abstract] | ' | |||||||
LONGVIEW TIMBER PURCHASE | ' | |||||||
LONGVIEW TIMBER PURCHASE | ||||||||
On July 23, 2013, we purchased 100 percent of the equity interests in Longview Timber LLC (Longview Timber) for $1.58 billion cash and assumed debt of $1.07 billion, for an aggregate purchase price of $2.65 billion. Longview Timber was a privately-held Delaware limited liability company engaged in the ownership and management of approximately 645,000 acres of timberlands in Oregon and Washington. We believe Longview Timber has productive lands with favorable age class distribution that will provide us with optionality for harvest. Earnings, assets and liabilities from this business are reported as part of the Timberlands segment beginning in third quarter 2013. | ||||||||
Summarized unaudited pro forma information that presents combined amounts as if this acquisition occurred at the beginning of 2013, is as follows: | ||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||
DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES | Jun-13 | Jun-13 | ||||||
Net sales | $ | 1,929 | $ | 3,736 | ||||
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders | $ | 198 | $ | 346 | ||||
Earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, basic and diluted | $ | 0.34 | $ | 0.59 | ||||
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
BUSINESS SEGMENTS | ' | |||||||||||||||
BUSINESS SEGMENTS | ||||||||||||||||
We are principally engaged in growing and harvesting timber and manufacturing, distributing and selling forest products. Our principal business segments are: | ||||||||||||||||
• | Timberlands – which includes logs, timber, minerals, oil and gas, and international wood products; | |||||||||||||||
• | Wood Products – which includes softwood lumber, engineered lumber, structural panels and building materials distribution; and | |||||||||||||||
• | Cellulose Fibers – which includes pulp, liquid packaging board and an equity interest in a newsprint joint venture. | |||||||||||||||
We have disposed of various businesses and operations that are excluded from the segment results below. See Note 2: Discontinued Operations for information regarding our discontinued operations. | ||||||||||||||||
An analysis and reconciliation of our business segment information to the respective information in the Consolidated Financial Statements is as follows: | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Sales to unaffiliated customers: | ||||||||||||||||
Timberlands | $ | 397 | $ | 333 | $ | 774 | $ | 626 | ||||||||
Wood Products | 1,077 | 1,065 | 1,975 | 2,053 | ||||||||||||
Cellulose Fibers | 490 | 476 | 951 | 950 | ||||||||||||
1,964 | 1,874 | 3,700 | 3,629 | |||||||||||||
Intersegment sales: | ||||||||||||||||
Timberlands | 186 | 166 | 424 | 390 | ||||||||||||
Wood Products | 21 | 18 | 40 | 36 | ||||||||||||
207 | 184 | 464 | 426 | |||||||||||||
Total sales | 2,171 | 2,058 | 4,164 | 4,055 | ||||||||||||
Intersegment eliminations | (207 | ) | (184 | ) | (464 | ) | (426 | ) | ||||||||
Total | $ | 1,964 | $ | 1,874 | $ | 3,700 | $ | 3,629 | ||||||||
Net contribution to earnings: | ||||||||||||||||
Timberlands | $ | 170 | $ | 114 | $ | 334 | $ | 218 | ||||||||
Wood Products | 102 | 136 | 166 | 314 | ||||||||||||
Cellulose Fibers | 91 | 57 | 145 | 88 | ||||||||||||
363 | 307 | 645 | 620 | |||||||||||||
Unallocated Items(1) | 48 | (6 | ) | 83 | (56 | ) | ||||||||||
Net contribution to earnings from discontinued operations | 29 | 20 | 45 | 24 | ||||||||||||
Net contribution to earnings | 440 | 321 | 773 | 588 | ||||||||||||
Interest expense, net of capitalized interest | (85 | ) | (81 | ) | (168 | ) | (163 | ) | ||||||||
Income before income taxes (continuing and discontinued operations) | 355 | 240 | 605 | 425 | ||||||||||||
Income taxes (continuing and discontinued operations) | (64 | ) | (42 | ) | (120 | ) | (83 | ) | ||||||||
Net earnings | 291 | 198 | 485 | 342 | ||||||||||||
Dividends on preference shares | (11 | ) | (2 | ) | (22 | ) | (2 | ) | ||||||||
Net earnings attributable to Weyerhaeuser common shareholders | $ | 280 | $ | 196 | $ | 463 | $ | 340 | ||||||||
-1 | 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, pension and postretirement costs, foreign exchange transaction gains and losses associated with outstanding borrowings and the elimination of intersegment profit in inventory and the LIFO reserve. |
NET_EARNINGS_PER_SHARE
NET EARNINGS PER SHARE | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
NET EARNINGS PER SHARE | ' | |||||||||||
NET EARNINGS PER SHARE | ||||||||||||
Our basic earnings per share attributable to Weyerhaeuser shareholders were: | ||||||||||||
• | $0.48 during second quarter and $0.79 during year-to-date 2014; and | |||||||||||
• | $0.35 during second quarter and $0.62 during year-to-date 2013. | |||||||||||
Our diluted earnings per share attributable to Weyerhaeuser shareholders were: | ||||||||||||
• | $0.47 during second quarter and $0.79 during year-to-date 2014; and | |||||||||||
• | $0.35 during second quarter and $0.61 during year-to-date 2013. | |||||||||||
Basic earnings per share is net earnings available to common shareholders divided by the weighted average number of our outstanding common shares, including stock equivalent units where there is no circumstance under which those shares would not be issued. | ||||||||||||
Diluted earnings per share is net earnings available to common shareholders divided by the sum of the: | ||||||||||||
• | weighted average number of our outstanding common shares and | |||||||||||
• | the effect of our outstanding dilutive potential common shares. | |||||||||||
Dilutive potential common shares can include: | ||||||||||||
• | outstanding stock options, | |||||||||||
• | restricted stock units, | |||||||||||
• | performance share units and | |||||||||||
• | preference shares. | |||||||||||
We use the treasury stock method to calculate the effect of our outstanding stock options, restricted stock units and performance share units. Share-based payment awards that are contingently issuable upon the achievement of specified performance or market conditions are included in our diluted earnings per share calculation in the period in which the conditions are satisfied. | ||||||||||||
We use the if-converted method to calculate the effect of our outstanding preference shares. In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be antidilutive. Preference shares are antidilutive whenever the amount of the dividend declared in or accumulated for the current period per common share obtainable on conversion exceeds diluted earnings per share exclusive of the preference shares. | ||||||||||||
Preference shares are evaluated for participation on a quarterly basis to determine whether two-class presentation is required. Preference shares are considered to be participating as of the financial reporting period end to the extent they would participate in dividends paid to common shareholders. Preference shares are not considered participating for the quarter and year-to-date periods ended June 30, 2014. Under the provisions of the two-class method, basic and diluted earnings per share would be presented for both preference and common shareholders. | ||||||||||||
SHARES EXCLUDED FROM DILUTIVE EFFECT | ||||||||||||
The following shares were not included in the computation of diluted earnings per share because they were either antidilutive or the required performance or market conditions were not met. Some or all of these shares may be dilutive potential common shares in future periods. | ||||||||||||
We issued 13.8 million 6.375 percent Mandatory Convertible Preference Shares, Series A on June 24, 2013. We do not include these shares in our calculation of diluted earnings per share because they are antidilutive. | ||||||||||||
Potential Shares Not Included in the Computation of Diluted Earnings per Share | ||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||
SHARES IN THOUSANDS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||
Stock options | 4,551 | 4,862 | 4,551 | 4,862 | ||||||||
Performance share units | 453 | 577 | 453 | 577 | ||||||||
Preference shares | 24,865 | 24,865 | 24,865 | 24,865 | ||||||||
INVENTORIES
INVENTORIES | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ||||||||
Inventories include raw materials, work-in-process and finished goods. | ||||||||
DOLLAR AMOUNTS IN MILLIONS | JUNE 30, | DECEMBER 31, | ||||||
2014 | 2013 | |||||||
LIFO Inventories: | ||||||||
Logs and chips | $ | 15 | $ | 15 | ||||
Lumber, plywood and panels | 60 | 46 | ||||||
Pulp and paperboard | 112 | 97 | ||||||
Other products | 12 | 11 | ||||||
FIFO or moving average cost inventories: | ||||||||
Logs and chips | 29 | 33 | ||||||
Lumber, plywood, panels and engineered lumber | 89 | 70 | ||||||
Pulp and paperboard | 37 | 30 | ||||||
Other products | 92 | 94 | ||||||
Materials and supplies | 150 | 146 | ||||||
Total | $ | 596 | $ | 542 | ||||
LIFO – the last-in, first-out method – applies to major inventory products held at our U.S. domestic locations. We began to use the LIFO method for domestic products in the 1940s as required to conform with the tax method elected. Subsequent acquisitions of entities added new products under the FIFO - the first-in, first-out method – or moving average cost methods that have continued under those methods. The FIFO or moving average cost methods applies to the balance of our domestic raw material and product inventories as well as for all material and supply inventories and all foreign inventories. If we used FIFO for all inventories, our stated inventories would have been $119 million and $112 million higher as of June 30, 2014 and December 31, 2013, respectively. |
PENSION_AND_OTHER_POSTRETIREME
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | ' | |||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | ||||||||||||||||
The components of net periodic benefit costs (credits) are: | ||||||||||||||||
PENSION | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Service cost(1) | $ | 13 | $ | 16 | $ | 27 | $ | 32 | ||||||||
Interest cost | 69 | 62 | 138 | 122 | ||||||||||||
Expected return on plan assets | (116 | ) | (111 | ) | (232 | ) | (220 | ) | ||||||||
Amortization of actuarial loss | 30 | 56 | 61 | 111 | ||||||||||||
Amortization of prior service cost | 2 | 1 | 3 | 3 | ||||||||||||
Total net periodic benefit cost (credit) | $ | (2 | ) | $ | 24 | $ | (3 | ) | $ | 48 | ||||||
-1 | Service cost includes $1 million and $2 million for quarter and year-to-date ended 2014 and $2 million and $3 million for quarter and year-to-date ended 2013 for employees that were part of the Real Estate Divestiture. These charges are included in our results of discontinued operations. | |||||||||||||||
OTHER POSTRETIREMENT BENEFITS | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Service cost | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||
Interest cost | $ | 2 | $ | 3 | 5 | 6 | ||||||||||
Amortization of actuarial loss | 3 | 4 | 6 | 7 | ||||||||||||
Amortization of prior service credit | (47 | ) | (6 | ) | (95 | ) | (12 | ) | ||||||||
Other | — | 2 | (4 | ) | 2 | |||||||||||
Total net periodic benefit cost (credit) | $ | (42 | ) | $ | 4 | $ | (88 | ) | $ | 4 | ||||||
During fourth quarter 2013, we decided to eliminate post-Medicare health funding for certain salaried retirees after 2014. As a result, we will ratably amortize a total pretax gain of $177 million throughout 2014. We recognized a pretax gain of $45 million in second quarter 2014 and $90 million in first half 2014 from this plan amendment. This gain is included in "Other operating income, net" in our Consolidated Statement of Operations and reflected in the amortization of prior service credit in the table above. | ||||||||||||||||
VALUATION OF PENSION PLAN ASSETS AND OBLIGATION | ||||||||||||||||
We estimate the fair value of pension plan assets based upon the information available during the year-end reporting process. In some cases, primarily private equity funds, the information available consists of net asset values as of an interim date, cash flows between the interim date and the end of the year and market events. We revised the year-end estimated fair value of pension plan assets to incorporate year-end net asset values reflected in audited financial statements received after we have filed our Annual Report on Form 10-K. During second quarter 2014, we recorded an increase in the fair value of the pension assets of $53 million. We also revised our census data that is used to estimate our projected benefit obligation. During second quarter 2014, we recorded an increase to the projected benefit obligation of $19 million. The net effect was a $34 million increase in the funded status. | ||||||||||||||||
EXPECTED CONTRIBUTIONS AND BENEFIT PAYMENTS | ||||||||||||||||
As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2013, in 2014 we expect to: | ||||||||||||||||
• | make approximately $53 million of required contributions to our Canadian registered pension plan; | |||||||||||||||
• | make $3 million of required contributions or benefit payments to our Canadian nonregistered pension plans; | |||||||||||||||
• | make benefit payments of $20 million for our U.S. nonqualified pension plans; and | |||||||||||||||
• | make benefit payments of $35 million for our U.S. and Canadian other postretirement plans. | |||||||||||||||
We do not anticipate making a contribution to our U.S. qualified pension plan for 2014. |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
ACCRUED LIABILITIES | ' | |||||||
ACCRUED LIABILITIES | ||||||||
Accrued liabilities were comprised of the following: | ||||||||
DOLLAR AMOUNTS IN MILLIONS | JUNE 30, | DECEMBER 31, | ||||||
2014 | 2013 | |||||||
Wages, salaries and severance pay | $ | 135 | $ | 159 | ||||
Pension and postretirement | 57 | 57 | ||||||
Vacation pay | 48 | 48 | ||||||
Income taxes | 2 | 4 | ||||||
Taxes – Social Security and real and personal property | 34 | 32 | ||||||
Interest | 104 | 104 | ||||||
Customer rebates and volume discounts | 36 | 50 | ||||||
Deferred income | 75 | 82 | ||||||
Other | 106 | 93 | ||||||
Total | $ | 597 | $ | 629 | ||||
FAIR_VALUE_OF_FINANCIAL_INSTRU
FAIR VALUE OF FINANCIAL INSTRUMENTS | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Line Items] | ' | |||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ' | |||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS | ||||||||||||||||
The estimated fair values and carrying values of our long-term debt consisted of the following: | ||||||||||||||||
JUNE 30, | DECEMBER 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | CARRYING | FAIR VALUE | CARRYING | FAIR VALUE | ||||||||||||
VALUE | (LEVEL 2) | VALUE | (LEVEL 2) | |||||||||||||
Long-term debt (including current maturities) | $ | 4,891 | $ | 6,013 | $ | 4,891 | $ | 5,683 | ||||||||
To estimate the fair value of long-term debt, we used the following valuation approaches: | ||||||||||||||||
• | market approach – based on quoted market prices we received for the same types and issues of our debt; or | |||||||||||||||
• | income approach – based on the discounted value of the future cash flows using market yields for the same type and comparable issues of debt. | |||||||||||||||
The inputs to these valuations are based on market data obtained from independent sources or information derived principally from observable market data. | ||||||||||||||||
The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at the measurement date. | ||||||||||||||||
FAIR VALUE OF OTHER FINANCIAL INSTRUMENTS | ||||||||||||||||
We believe that our other financial instruments, including cash and cash equivalents, short-term investments, receivables, and payables, have net carrying values that approximate their fair values with only insignificant differences. This is primarily due to: | ||||||||||||||||
• | the short-term nature of these instruments, | |||||||||||||||
• | carrying short-term investments at expected net realizable value and | |||||||||||||||
• | the allowance for doubtful accounts. |
LEGAL_PROCEEDINGS_COMMITMENTS_
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES | 6 Months Ended | |
Jun. 30, 2014 | ||
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES | ' | |
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES | ||
This note provides details about our: | ||
• | legal proceedings and | |
• | environmental matters. | |
LEGAL PROCEEDINGS | ||
We are party to various legal proceedings arising in the ordinary course of business, however, we are not currently a party to any legal proceeding that management believes could have a material adverse effect on our long-term financial position, results of operations or cash flows. | ||
ENVIRONMENTAL MATTERS | ||
Our environmental matters include: | ||
• | site remediation and | |
• | asset retirement obligations. | |
Site Remediation | ||
Under the Comprehensive Environmental Response Compensation and Liability Act – commonly known as the Superfund – and similar state laws, we: | ||
• | are a party to various proceedings related to the cleanup of hazardous waste sites and | |
• | have been notified that we may be a potentially responsible party related to the cleanup of other hazardous waste sites for which proceedings have not yet been initiated. | |
As of June 30, 2014, our total accrual for future estimated remediation costs on the active Superfund sites and other sites for which we are responsible was approximately $31 million. These reserves are recorded in "Accrued liabilities" and "Other liabilities" in our Consolidated Balance Sheet. The accrual has not changed materially since the end of 2013. | ||
Asset Retirement Obligations | ||
We have obligations associated with the retirement of tangible long-lived assets consisting primarily of reforestation obligations related to forest management licenses in Canada and obligations to close and cap landfills. As of June 30, 2014, our total accruals for these obligations was $45 million. These obligations are recorded in "Accrued liabilities" and "Other liabilities" in our Consolidated Balance Sheet. The accruals have not changed materially since the end of 2013. | ||
Some of our sites have asbestos containing materials. We have met our current legal obligation to identify and manage these materials. In situations where we cannot reasonably determine when asbestos containing materials might be removed from the sites, we have not recorded an accrual because the fair value of the obligation cannot be reasonably estimated. |
CUMULATIVE_OTHER_COMPREHENSIVE
CUMULATIVE OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
CUMULATIVE OTHER COMPREHENSIVE INCOME (LOSS) | ' | |||||||||||||||||||||
CUMULATIVE OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||||||
Changes in amounts included in our cumulative other comprehensive income (loss) by component are: | ||||||||||||||||||||||
PENSION | OTHER POSTRETIREMENT BENEFITS | |||||||||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Foreign currency translation adjustments | Actuarial losses | Prior service costs | Actuarial losses | Prior service credits | Unrealized gains on available-for-sale securities | Total | |||||||||||||||
Beginning balance as of December 31, 2013 | $ | 354 | $ | (1,066 | ) | $ | (19 | ) | $ | (111 | ) | $ | 150 | $ | 6 | $ | (686 | ) | ||||
Other comprehensive income (loss) before reclassifications | (1 | ) | 33 | (1 | ) | — | 20 | — | 51 | |||||||||||||
Income taxes | — | (12 | ) | — | — | (4 | ) | — | (16 | ) | ||||||||||||
Net other comprehensive income (loss) before reclassifications | (1 | ) | 21 | (1 | ) | — | 16 | — | 35 | |||||||||||||
Amounts reclassified from cumulative other comprehensive income (loss)(1) | — | 61 | 3 | 6 | (95 | ) | — | (25 | ) | |||||||||||||
Income taxes | — | (20 | ) | (1 | ) | (1 | ) | 35 | — | 13 | ||||||||||||
Net amounts reclassified from cumulative other comprehensive income (loss) | — | 41 | 2 | 5 | (60 | ) | — | (12 | ) | |||||||||||||
Total other comprehensive income (loss) | (1 | ) | 62 | 1 | 5 | (44 | ) | — | 23 | |||||||||||||
Ending balance as of June 30, 2014 | $ | 353 | $ | (1,004 | ) | $ | (18 | ) | $ | (106 | ) | $ | 106 | $ | 6 | $ | (663 | ) | ||||
(1) Actuarial losses and prior service credits (cost) are included in the computation of net periodic benefit costs (credits). See Note 7: Pension and Other Postretirement Benefit Plans. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
SHARE-BASED COMPENSATION | ' | ||||||
SHARE-BASED COMPENSATION | |||||||
In year-to-date 2014, we granted 2,463,254 stock options, 686,310 restricted stock units, 321,403 performance share units and 73,605 stock appreciation rights. In addition, 432,583 outstanding restricted stock units and 216,622 outstanding performance share units vested during year-to-date 2014. A total of 3,078,324 shares of common stock were issued as a result of restricted stock unit vesting, performance share unit vesting and stock option exercises. | |||||||
As a result of the Real Estate Divestiture, the outstanding awards for active WRECO employees were converted into TRI Pointe awards. In third quarter 2014, 1,601,107 stock options, 279,507 restricted stock units and 44,030 performance share units were cancelled. These shares will be available for future issuance under our Long-Term Incentive Compensation Plan. See Note 2. Discontinued Operations. | |||||||
STOCK OPTIONS | |||||||
The weighted average exercise price of all of the stock options granted in 2014 was $30.14. The vesting and post-termination vesting terms for stock options granted in 2014 were as follows: | |||||||
• | vest ratably over four years; | ||||||
• | vest or continue to vest in the event of death while employed, disability or retirement at an age of at least 62; | ||||||
• | continue to vest upon retirement at an age of at least 62, but a portion of the grant is forfeited if retirement occurs before the one year anniversary of the grant; | ||||||
• | continue to vest for one year in the event of involuntary termination when the retirement criteria has not been met; and | ||||||
• | stop vesting for all other situations including early retirement prior to age 62. | ||||||
Weighted Average Assumptions Used in Estimating the Value of Stock Options Granted in 2014 | |||||||
OPTIONS | |||||||
Expected volatility | 31.71 | % | |||||
Expected dividends | 2.92 | % | |||||
Expected term (in years) | 4.97 | ||||||
Risk-free rate | 1.57 | % | |||||
Weighted average grant date fair value | $ | 6.62 | |||||
RESTRICTED STOCK UNITS | |||||||
The weighted average fair value of the restricted stock units granted in 2014 was $30.14. The vesting provisions for restricted stock units granted in 2014 were as follows: | |||||||
• | vest ratably over four years; | ||||||
• | immediately vest in the event of death while employed or disability; | ||||||
• | continue to vest upon retirement at an age of at least 62, but a portion of the grant is forfeited if retirement occurs before the one year anniversary of the grant; | ||||||
• | continue vesting for one year in the event of involuntary termination when the retirement criteria has not been met; and | ||||||
• | will be forfeited upon termination of employment in all other situations including early retirement prior to age 62. | ||||||
PERFORMANCE SHARE UNITS | |||||||
The weighted average grant date fair value of performance share units granted in 2014 was $30.62. The vesting provisions for performance share units granted in 2014 and that are earned were as follows: | |||||||
• | vest 50 percent, 25 percent and 25 percent on the second, third and fourth anniversaries of the grant date, respectively, as long as the individual remains employed by the company; | ||||||
• | fully vest in the event the participant dies or becomes disabled while employed; | ||||||
• | continue to vest upon retirement at an age of at least 62, but a portion of the grant is forfeited if retirement occurs before the one year anniversary of the grant; | ||||||
• | continue vesting for one year in the event of involuntary termination when the retirement criteria has not been met; and | ||||||
• | will be forfeited upon termination of employment in all other situations including early retirement prior to age 62. | ||||||
Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted in 2014 | |||||||
Performance Share Units | |||||||
Performance period | 1/1/2014 – 12/31/2015 | ||||||
Valuation date closing stock price | $ | 30.16 | |||||
Expected dividends | 2.91 | % | |||||
Risk-free rate | 0.03 | % | – | 0.79 | % | ||
Expected volatility | 20.74 | % | – | 23.53 | % | ||
STOCK APPRECIATION RIGHTS | |||||||
Stock appreciation rights are remeasured to reflect the fair value at each reporting period. The following table shows the weighted average assumptions applied to all outstanding stock appreciation rights as of June 30, 2014. | |||||||
Weighted Average Assumptions Used to Remeasure the Value of Stock Appreciation Rights as of June 30, 2014 | |||||||
JUNE 30, | |||||||
2014 | |||||||
Expected volatility | 20.77 | % | |||||
Expected dividends | 2.83 | % | |||||
Expected term (in years) | 1.61 | ||||||
Risk-free rate | 0.38 | % | |||||
Weighted average fair value | $ | 8.3 | |||||
The vesting and post-termination vesting terms for stock appreciation rights granted in 2014 are the same as for stock options described above. |
CHARGES_FOR_RESTRUCTURING_CLOS
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS | ' | |||||||||||||||
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS | ||||||||||||||||
Items Included in Our Restructuring, Closure and Asset Impairment Charges | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Restructuring and closure charges: | ||||||||||||||||
Termination benefits | $ | 6 | $ | — | $ | 23 | $ | — | ||||||||
Other restructuring and closure costs | 1 | 2 | 3 | 3 | ||||||||||||
Charges for restructuring and closures | 7 | 2 | 26 | 3 | ||||||||||||
Impairments of long-lived assets | 1 | 1 | 1 | 3 | ||||||||||||
Total charges for restructuring and impairment of long-lived assets | $ | 8 | $ | 3 | $ | 27 | $ | 6 | ||||||||
During 2014, our restructuring and closure charges were primarily related to our selling, general and administrative cost reduction initiative to support achieving our competitive performance goals. We expect to incur approximately $10 million in additional charges related to these activities between now and early 2015, the majority of which will relate to additional other restructuring and closure costs. | ||||||||||||||||
Changes in accrued severance related to restructuring during the year-to-date period ended June 30, 2014 were as follows: | ||||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | ||||||||||||||||
Accrued severance as of December 31, 2013 | $ | 2 | ||||||||||||||
Charges | 23 | |||||||||||||||
Payments | (9 | ) | ||||||||||||||
Accrued severance as of June 30, 2014 | $ | 16 | ||||||||||||||
The majority of the accrued severance balance as of June 30, 2014, is expected to be paid within one year. |
OTHER_OPERATING_INCOME_NET
OTHER OPERATING INCOME, NET | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
OTHER OPERATING INCOME, NET | ' | |||||||||||||||
OTHER OPERATING INCOME, NET | ||||||||||||||||
Other operating income, net: | ||||||||||||||||
• | includes both recurring and occasional income and expense items and | |||||||||||||||
• | can fluctuate from year to year. | |||||||||||||||
Items Included in Other Operating Income, Net | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Gain on postretirement plan amendment (Note 7) | $ | (45 | ) | $ | — | $ | (90 | ) | $ | — | ||||||
Gain on disposition of non-strategic assets | (1 | ) | (7 | ) | (24 | ) | (13 | ) | ||||||||
Foreign exchange losses (gains), net | (12 | ) | 4 | 2 | 8 | |||||||||||
Land management income | (9 | ) | (7 | ) | (16 | ) | (13 | ) | ||||||||
Other, net | 2 | — | (12 | ) | (10 | ) | ||||||||||
Total other operating income, net | $ | (65 | ) | $ | (10 | ) | $ | (140 | ) | $ | (28 | ) | ||||
Gain on disposition of non-strategic assets in 2014 included a $22 million pretax gain recognized in first quarter 2014 on the sale of a landfill in Washington State. | ||||||||||||||||
Foreign exchange losses result from changes in exchange rates on transactions, primarily related to our Canadian operations. | ||||||||||||||||
Land management income includes income from recreational activities, land permits, grazing rights, firewood sales and other miscellaneous income related to land management activities. |
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2014 | |
INCOME TAXES | ' |
INCOME TAXES | |
As a REIT, we generally are not subject to corporate level tax on income of the REIT that is distributed to shareholders. We will, however, be subject to corporate taxes on built-in-gains (the excess of fair market value over tax basis at January 1, 2010) on sales of real property (other than standing timber) held by the REIT during the first 10 years following the REIT conversion. We also will continue to be required to pay federal corporate income taxes on earnings of our TRS, which principally includes our manufacturing businesses and the portion of our Timberlands segment income included in the TRS. | |
The 2014 provision for income taxes is based on the current estimate of the annual effective tax rate. Our 2014 estimated annual effective tax rate for our TRS is approximately 35 percent. | |
There were no significant discrete items excluded from the calculation of our effective income tax rate for 2014 or 2013. |
BASIS_OF_PRESENTATION_Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended | |
Jun. 30, 2014 | ||
Consolidation, Policy | ' | |
Our consolidated financial statements provide an overall view of our results and financial condition. They include our accounts and the accounts of entities we control, including: | ||
• | majority-owned domestic and foreign subsidiaries and | |
• | variable interest entities in which we are the primary beneficiary. | |
They do not include our intercompany transactions and accounts, which are eliminated, and noncontrolling interests are presented as a separate component of equity. | ||
We account for investments in and advances to unconsolidated equity affiliates using the equity method, with taxes provided on undistributed earnings. This means that we record earnings and accrue taxes in the period earnings are recognized by our unconsolidated equity affiliates. | ||
Throughout these Notes to Consolidated Financial Statements, unless specified otherwise, references to “Weyerhaeuser,” “we” and “our” refer to the consolidated company. | ||
New Accounting Pronouncements, Policy | ' | |
NEW ACCOUNTING PRONOUNCEMENTS | ||
In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-11, which provides guidance on the presentation of unrecognized tax benefits, reflecting the manner in which an entity would settle at the reporting date any additional income taxes that would result from the disallowance of a tax position when net operating loss carryforwards, similar tax losses or tax credit carryforwards exist. Our prospective adoption of this guidance in first quarter 2014 did not have a material effect on our results of operations, financial position or cash flows. | ||
In April 2014, FASB issued ASU 2014-08, an amendment to the current model of the classification and presentation of discontinued operations and asset disposals that changes the definition of a discontinued operation to include only disposals of components of an entity that represent a strategic shift that has (or will have) a material effect on an entity's financial results. The new standard is effective for all disposals or classifications as assets held for sale for fiscal periods starting after December 15, 2014 and early adoption is permitted. We expect to adopt ASU 2014-08 on January 1, 2015 and have determined that its adoption will not have a material impact on our consolidated financial statements and related disclosures at that time. | ||
In May 2014, FASB issued ASU 2014-09, a comprehensive new revenue recognition model that requires an entity to recognize revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The new standard is effective for us on January 1, 2017 and early adoption is not permitted. We may use either the retrospective or cumulative effect transition method. We are evaluating the impact that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor determined the effect of the standard on our ongoing financial reporting. |
NET_EARNINGS_PER_SHARE_Policie
NET EARNINGS PER SHARE (Policies) | 6 Months Ended |
Jun. 30, 2014 | |
Earnings Per Share, Basic and Diluted [Abstract] | ' |
Earnings Per Share, Policy | ' |
We use the treasury stock method to calculate the effect of our outstanding stock options, restricted stock units and performance share units. Share-based payment awards that are contingently issuable upon the achievement of specified performance or market conditions are included in our diluted earnings per share calculation in the period in which the conditions are satisfied. | |
We use the if-converted method to calculate the effect of our outstanding preference shares. In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be antidilutive. Preference shares are antidilutive whenever the amount of the dividend declared in or accumulated for the current period per common share obtainable on conversion exceeds diluted earnings per share exclusive of the preference shares. | |
Preference shares are evaluated for participation on a quarterly basis to determine whether two-class presentation is required. Preference shares are considered to be participating as of the financial reporting period end to the extent they would participate in dividends paid to common shareholders. Preference shares are not considered participating for the quarter and year-to-date periods ended June 30, 2014. Under the provisions of the two-class method, basic and diluted earnings per share would be presented for both preference and common shareholders. |
FAIR_VALUE_OF_FINANCIAL_INSTRU1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Policies) | 6 Months Ended | |
Jun. 30, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract] | ' | |
Fair Value of Financial Instruments, Policy | ' | |
To estimate the fair value of long-term debt, we used the following valuation approaches: | ||
• | market approach – based on quoted market prices we received for the same types and issues of our debt; or | |
• | income approach – based on the discounted value of the future cash flows using market yields for the same type and comparable issues of debt. | |
The inputs to these valuations are based on market data obtained from independent sources or information derived principally from observable market data. | ||
The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at the measurement date. |
DISCONTINUED_OPERATIONS_Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||||||
Components of net sales and net earnings from discontinued operations | ' | |||||||||||||||
The following table summarizes the components of net sales and net earnings from discontinued operations. | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Net sales from discontinued operations | $ | 317 | $ | 267 | $ | 565 | $ | 463 | ||||||||
Income from operations | $ | 27 | $ | 19 | $ | 43 | $ | 23 | ||||||||
Income taxes | (5 | ) | (6 | ) | (11 | ) | (8 | ) | ||||||||
Net earnings from discontinued operations | $ | 22 | $ | 13 | $ | 32 | $ | 15 | ||||||||
Carrying values for assets and liabilities classified as discontinued operations | ' | |||||||||||||||
The following table shows carrying values for assets and liabilities classified as discontinued operations as of June 30, 2014 and December 31, 2013. | ||||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | JUNE 30, | DECEMBER 31, | ||||||||||||||
2014 | 2013 | |||||||||||||||
Assets | ||||||||||||||||
Cash and cash equivalents | $ | 63 | $ | 5 | ||||||||||||
Restricted cash | 887 | — | ||||||||||||||
Receivables, less discounts and allowances | 19 | 51 | ||||||||||||||
Prepaid expenses | 10 | 11 | ||||||||||||||
Deferred tax assets | 9 | 21 | ||||||||||||||
Total current assets | 988 | 88 | ||||||||||||||
Property and equipment, net | 16 | 15 | ||||||||||||||
Real estate in process of development and for sale | 974 | 851 | ||||||||||||||
Land being processed for development | 609 | 596 | ||||||||||||||
Investments in and advances to equity affiliates | 15 | 21 | ||||||||||||||
Deferred tax assets | 120 | 115 | ||||||||||||||
Other assets | 93 | 96 | ||||||||||||||
Total noncurrent assets | 1,827 | 1,694 | ||||||||||||||
Total assets | $ | 2,815 | $ | 1,782 | ||||||||||||
Liabilities | ||||||||||||||||
Accounts payable | 53 | 41 | ||||||||||||||
Accrued liabilities | 84 | 113 | ||||||||||||||
Total current liabilities | 137 | 154 | ||||||||||||||
Long-term debt | 887 | — | ||||||||||||||
Long-term debt (nonrecourse to the company) held by variable interest entities | 8 | 5 | ||||||||||||||
Other liabilities | 31 | 27 | ||||||||||||||
Total noncurrent liabilities | 926 | 32 | ||||||||||||||
Total liabilities | $ | 1,063 | $ | 186 | ||||||||||||
Noncontrolling interests | $ | 49 | $ | 34 | ||||||||||||
LONGVIEW_TIMBER_PURCHASE_Table
LONGVIEW TIMBER PURCHASE (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Summarized unaudited pro forma information | ' | |||||||
Summarized unaudited pro forma information that presents combined amounts as if this acquisition occurred at the beginning of 2013, is as follows: | ||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||
DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES | Jun-13 | Jun-13 | ||||||
Net sales | $ | 1,929 | $ | 3,736 | ||||
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders | $ | 198 | $ | 346 | ||||
Earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, basic and diluted | $ | 0.34 | $ | 0.59 | ||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | ' | |||||||||||||||
An analysis and reconciliation of our business segment information to the respective information in the Consolidated Financial Statements is as follows: | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Sales to unaffiliated customers: | ||||||||||||||||
Timberlands | $ | 397 | $ | 333 | $ | 774 | $ | 626 | ||||||||
Wood Products | 1,077 | 1,065 | 1,975 | 2,053 | ||||||||||||
Cellulose Fibers | 490 | 476 | 951 | 950 | ||||||||||||
1,964 | 1,874 | 3,700 | 3,629 | |||||||||||||
Intersegment sales: | ||||||||||||||||
Timberlands | 186 | 166 | 424 | 390 | ||||||||||||
Wood Products | 21 | 18 | 40 | 36 | ||||||||||||
207 | 184 | 464 | 426 | |||||||||||||
Total sales | 2,171 | 2,058 | 4,164 | 4,055 | ||||||||||||
Intersegment eliminations | (207 | ) | (184 | ) | (464 | ) | (426 | ) | ||||||||
Total | $ | 1,964 | $ | 1,874 | $ | 3,700 | $ | 3,629 | ||||||||
Net contribution to earnings: | ||||||||||||||||
Timberlands | $ | 170 | $ | 114 | $ | 334 | $ | 218 | ||||||||
Wood Products | 102 | 136 | 166 | 314 | ||||||||||||
Cellulose Fibers | 91 | 57 | 145 | 88 | ||||||||||||
363 | 307 | 645 | 620 | |||||||||||||
Unallocated Items(1) | 48 | (6 | ) | 83 | (56 | ) | ||||||||||
Net contribution to earnings from discontinued operations | 29 | 20 | 45 | 24 | ||||||||||||
Net contribution to earnings | 440 | 321 | 773 | 588 | ||||||||||||
Interest expense, net of capitalized interest | (85 | ) | (81 | ) | (168 | ) | (163 | ) | ||||||||
Income before income taxes (continuing and discontinued operations) | 355 | 240 | 605 | 425 | ||||||||||||
Income taxes (continuing and discontinued operations) | (64 | ) | (42 | ) | (120 | ) | (83 | ) | ||||||||
Net earnings | 291 | 198 | 485 | 342 | ||||||||||||
Dividends on preference shares | (11 | ) | (2 | ) | (22 | ) | (2 | ) | ||||||||
Net earnings attributable to Weyerhaeuser common shareholders | $ | 280 | $ | 196 | $ | 463 | $ | 340 | ||||||||
-1 | 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, pension and postretirement costs, foreign exchange transaction gains and losses associated with outstanding borrowings and the elimination of intersegment profit in inventory and the LIFO reserve. |
NET_EARNINGS_PER_SHARE_Tables
NET EARNINGS PER SHARE (Tables) | 6 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Potential Shares Not Included in the Computation of Diluted Earnings per Share | ' | |||||||||||
Potential Shares Not Included in the Computation of Diluted Earnings per Share | ||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||
SHARES IN THOUSANDS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||
Stock options | 4,551 | 4,862 | 4,551 | 4,862 | ||||||||
Performance share units | 453 | 577 | 453 | 577 | ||||||||
Preference shares | 24,865 | 24,865 | 24,865 | 24,865 | ||||||||
INVENTORIES_Tables
INVENTORIES (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Inventories | ' | |||||||
Inventories include raw materials, work-in-process and finished goods. | ||||||||
DOLLAR AMOUNTS IN MILLIONS | JUNE 30, | DECEMBER 31, | ||||||
2014 | 2013 | |||||||
LIFO Inventories: | ||||||||
Logs and chips | $ | 15 | $ | 15 | ||||
Lumber, plywood and panels | 60 | 46 | ||||||
Pulp and paperboard | 112 | 97 | ||||||
Other products | 12 | 11 | ||||||
FIFO or moving average cost inventories: | ||||||||
Logs and chips | 29 | 33 | ||||||
Lumber, plywood, panels and engineered lumber | 89 | 70 | ||||||
Pulp and paperboard | 37 | 30 | ||||||
Other products | 92 | 94 | ||||||
Materials and supplies | 150 | 146 | ||||||
Total | $ | 596 | $ | 542 | ||||
PENSION_AND_OTHER_POSTRETIREME1
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Components of Net Periodic Benefit Costs (Credits) | ' | |||||||||||||||
The components of net periodic benefit costs (credits) are: | ||||||||||||||||
PENSION | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Service cost(1) | $ | 13 | $ | 16 | $ | 27 | $ | 32 | ||||||||
Interest cost | 69 | 62 | 138 | 122 | ||||||||||||
Expected return on plan assets | (116 | ) | (111 | ) | (232 | ) | (220 | ) | ||||||||
Amortization of actuarial loss | 30 | 56 | 61 | 111 | ||||||||||||
Amortization of prior service cost | 2 | 1 | 3 | 3 | ||||||||||||
Total net periodic benefit cost (credit) | $ | (2 | ) | $ | 24 | $ | (3 | ) | $ | 48 | ||||||
-1 | Service cost includes $1 million and $2 million for quarter and year-to-date ended 2014 and $2 million and $3 million for quarter and year-to-date ended 2013 for employees that were part of the Real Estate Divestiture. These charges are included in our results of discontinued operations. | |||||||||||||||
OTHER POSTRETIREMENT BENEFITS | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Service cost | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||
Interest cost | $ | 2 | $ | 3 | 5 | 6 | ||||||||||
Amortization of actuarial loss | 3 | 4 | 6 | 7 | ||||||||||||
Amortization of prior service credit | (47 | ) | (6 | ) | (95 | ) | (12 | ) | ||||||||
Other | — | 2 | (4 | ) | 2 | |||||||||||
Total net periodic benefit cost (credit) | $ | (42 | ) | $ | 4 | $ | (88 | ) | $ | 4 | ||||||
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 6 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accrued Liabilities | ' | |||||||
Accrued liabilities were comprised of the following: | ||||||||
DOLLAR AMOUNTS IN MILLIONS | JUNE 30, | DECEMBER 31, | ||||||
2014 | 2013 | |||||||
Wages, salaries and severance pay | $ | 135 | $ | 159 | ||||
Pension and postretirement | 57 | 57 | ||||||
Vacation pay | 48 | 48 | ||||||
Income taxes | 2 | 4 | ||||||
Taxes – Social Security and real and personal property | 34 | 32 | ||||||
Interest | 104 | 104 | ||||||
Customer rebates and volume discounts | 36 | 50 | ||||||
Deferred income | 75 | 82 | ||||||
Other | 106 | 93 | ||||||
Total | $ | 597 | $ | 629 | ||||
FAIR_VALUE_OF_FINANCIAL_INSTRU2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Estimated Fair Values and Carrying Values of Long-Term Debt | ' | |||||||||||||||
The estimated fair values and carrying values of our long-term debt consisted of the following: | ||||||||||||||||
JUNE 30, | DECEMBER 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | CARRYING | FAIR VALUE | CARRYING | FAIR VALUE | ||||||||||||
VALUE | (LEVEL 2) | VALUE | (LEVEL 2) | |||||||||||||
Long-term debt (including current maturities) | $ | 4,891 | $ | 6,013 | $ | 4,891 | $ | 5,683 | ||||||||
CUMULATIVE_OTHER_COMPREHENSIVE1
CUMULATIVE OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
Changes in amounts included in our cumulative other comprehensive income (loss) by component | ' | |||||||||||||||||||||
Changes in amounts included in our cumulative other comprehensive income (loss) by component are: | ||||||||||||||||||||||
PENSION | OTHER POSTRETIREMENT BENEFITS | |||||||||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Foreign currency translation adjustments | Actuarial losses | Prior service costs | Actuarial losses | Prior service credits | Unrealized gains on available-for-sale securities | Total | |||||||||||||||
Beginning balance as of December 31, 2013 | $ | 354 | $ | (1,066 | ) | $ | (19 | ) | $ | (111 | ) | $ | 150 | $ | 6 | $ | (686 | ) | ||||
Other comprehensive income (loss) before reclassifications | (1 | ) | 33 | (1 | ) | — | 20 | — | 51 | |||||||||||||
Income taxes | — | (12 | ) | — | — | (4 | ) | — | (16 | ) | ||||||||||||
Net other comprehensive income (loss) before reclassifications | (1 | ) | 21 | (1 | ) | — | 16 | — | 35 | |||||||||||||
Amounts reclassified from cumulative other comprehensive income (loss)(1) | — | 61 | 3 | 6 | (95 | ) | — | (25 | ) | |||||||||||||
Income taxes | — | (20 | ) | (1 | ) | (1 | ) | 35 | — | 13 | ||||||||||||
Net amounts reclassified from cumulative other comprehensive income (loss) | — | 41 | 2 | 5 | (60 | ) | — | (12 | ) | |||||||||||||
Total other comprehensive income (loss) | (1 | ) | 62 | 1 | 5 | (44 | ) | — | 23 | |||||||||||||
Ending balance as of June 30, 2014 | $ | 353 | $ | (1,004 | ) | $ | (18 | ) | $ | (106 | ) | $ | 106 | $ | 6 | $ | (663 | ) | ||||
(1) Actuarial losses and prior service credits (cost) are included in the computation of net periodic benefit costs (credits). See Note 7: Pension and Other Postretirement Benefit Plans. |
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended | ||||||
Jun. 30, 2014 | |||||||
Weighted Average Assumptions Used in Estimating the Value of Stock Options Granted | ' | ||||||
Weighted Average Assumptions Used in Estimating the Value of Stock Options Granted in 2014 | |||||||
OPTIONS | |||||||
Expected volatility | 31.71 | % | |||||
Expected dividends | 2.92 | % | |||||
Expected term (in years) | 4.97 | ||||||
Risk-free rate | 1.57 | % | |||||
Weighted average grant date fair value | $ | 6.62 | |||||
Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted | ' | ||||||
Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted in 2014 | |||||||
Performance Share Units | |||||||
Performance period | 1/1/2014 – 12/31/2015 | ||||||
Valuation date closing stock price | $ | 30.16 | |||||
Expected dividends | 2.91 | % | |||||
Risk-free rate | 0.03 | % | – | 0.79 | % | ||
Expected volatility | 20.74 | % | – | 23.53 | % | ||
Weighted Average Assumptions Used to Remeasure the Value of Stock Appreciation Rights | ' | ||||||
Weighted Average Assumptions Used to Remeasure the Value of Stock Appreciation Rights as of June 30, 2014 | |||||||
JUNE 30, | |||||||
2014 | |||||||
Expected volatility | 20.77 | % | |||||
Expected dividends | 2.83 | % | |||||
Expected term (in years) | 1.61 | ||||||
Risk-free rate | 0.38 | % | |||||
Weighted average fair value | $ | 8.3 | |||||
CHARGES_FOR_RESTRUCTURING_CLOS1
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||
Items Included in Our Restructuring, Closure and Asset Impairment Charges | ' | |||||||||||||||
Items Included in Our Restructuring, Closure and Asset Impairment Charges | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Restructuring and closure charges: | ||||||||||||||||
Termination benefits | $ | 6 | $ | — | $ | 23 | $ | — | ||||||||
Other restructuring and closure costs | 1 | 2 | 3 | 3 | ||||||||||||
Charges for restructuring and closures | 7 | 2 | 26 | 3 | ||||||||||||
Impairments of long-lived assets | 1 | 1 | 1 | 3 | ||||||||||||
Total charges for restructuring and impairment of long-lived assets | $ | 8 | $ | 3 | $ | 27 | $ | 6 | ||||||||
Changes in accrued severance related to restructuring | ' | |||||||||||||||
Changes in accrued severance related to restructuring during the year-to-date period ended June 30, 2014 were as follows: | ||||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | ||||||||||||||||
Accrued severance as of December 31, 2013 | $ | 2 | ||||||||||||||
Charges | 23 | |||||||||||||||
Payments | (9 | ) | ||||||||||||||
Accrued severance as of June 30, 2014 | $ | 16 | ||||||||||||||
OTHER_OPERATING_INCOME_NET_Tab
OTHER OPERATING INCOME, NET (Tables) | 6 Months Ended | |||||||||||||||
Jun. 30, 2014 | ||||||||||||||||
Items Included in Other Operating Income, Net | ' | |||||||||||||||
Items Included in Other Operating Income, Net | ||||||||||||||||
QUARTER ENDED | YEAR-TO-DATE ENDED | |||||||||||||||
DOLLAR AMOUNTS IN MILLIONS | Jun-14 | Jun-13 | Jun-14 | Jun-13 | ||||||||||||
Gain on postretirement plan amendment (Note 7) | $ | (45 | ) | $ | — | $ | (90 | ) | $ | — | ||||||
Gain on disposition of non-strategic assets | (1 | ) | (7 | ) | (24 | ) | (13 | ) | ||||||||
Foreign exchange losses (gains), net | (12 | ) | 4 | 2 | 8 | |||||||||||
Land management income | (9 | ) | (7 | ) | (16 | ) | (13 | ) | ||||||||
Other, net | 2 | — | (12 | ) | (10 | ) | ||||||||||
Total other operating income, net | $ | (65 | ) | $ | (10 | ) | $ | (140 | ) | $ | (28 | ) |
DISCONTINUED_OPERATIONS_Compon
DISCONTINUED OPERATIONS - Components of net sales and net earnings from discontinued operations (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Net sales from discontinued operations | $317 | $267 | $565 | $463 |
Income from operations | 27 | 19 | 43 | 23 |
Income taxes | -5 | -6 | -11 | -8 |
Net earnings from discontinued operations | $22 | $13 | $32 | $15 |
DISCONTINUED_OPERATIONS_Assets
DISCONTINUED OPERATIONS - Assets and liabilities classified as discontinued operations (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $63 | $5 |
Restricted cash | 887 | 0 |
Receivables, less discounts and allowances | 19 | 51 |
Prepaid expenses | 10 | 11 |
Deferred tax assets | 9 | 21 |
Total current assets | 988 | 88 |
Property and equipment, net | 16 | 15 |
Real estate in process of development and for sale | 974 | 851 |
Land being processed for development | 609 | 596 |
Investments in and advances to equity affiliates | 15 | 21 |
Deferred tax assets | 120 | 115 |
Other assets | 93 | 96 |
Total noncurrent assets | 1,827 | 1,694 |
Total assets | 2,815 | 1,782 |
Liabilities | ' | ' |
Accounts payable | 53 | 41 |
Accrued liabilities | 84 | 113 |
Total current liabilities | 137 | 154 |
Long-term debt | 887 | 0 |
Long-term debt (nonrecourse to the company) held by variable interest entities | 8 | 5 |
Other liabilities | 31 | 27 |
Total noncurrent liabilities | 926 | 32 |
Total liabilities | 1,063 | 186 |
Noncontrolling interests | $49 | $34 |
DISCONTINUED_OPERATIONS_Additi
DISCONTINUED OPERATIONS - Additional Information (Details) (USD $) | 0 Months Ended | 3 Months Ended | ||
Share data in Millions, unless otherwise specified | Jul. 07, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Subsequent event | Real Estate Divestiture | Real Estate Divestiture | Real Estate Divestiture | |
4.375% notes due 2019 | 5.875% notes due 2024 | |||
Rate | Rate | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Common stock in exchange for the distribution of shares of Weyerhaeuser Real Estate Company to our shareholders | 59 | ' | ' | ' |
Cash proceeds in connection with the Real Estate Divestiture | $712,000,000 | ' | ' | ' |
Expect to record net gain of Real Estate Divestiture | 1,000,000,000 | ' | ' | ' |
Long-term debt | ' | ' | 450,000,000 | 450,000,000 |
Debt, interest rate | ' | ' | 4.38% | 5.88% |
Debt, maturity date | ' | ' | 15-Jun-19 | 15-Jun-24 |
Net proceeds from issuance of debt | ' | $887,000,000 | ' | ' |
LONGVIEW_TIMBER_PURCHASE_Summa
LONGVIEW TIMBER PURCHASE - Summarized unaudited pro forma information (Detail) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2013 | Jun. 30, 2013 |
Business Acquisition [Line Items] | ' | ' |
Net sales | $1,929 | $3,736 |
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders | $198 | $346 |
Earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, basic and diluted | $0.34 | $0.59 |
LONGVIEW_TIMBER_PURCHASE_Addit
LONGVIEW TIMBER PURCHASE - Additional Information (Details) (USD $) | 3 Months Ended | |
Sep. 30, 2013 | Jul. 23, 2013 | |
acre | ||
Rate | ||
Business Acquisition [Line Items] | ' | ' |
Acquisition of Longview Timber LLC, effective date of acquisition | 23-Jul-13 | ' |
Acquisition of Longview Timber LLC, equity interests purchased | ' | 100.00% |
Acquisition of Longview Timber LLC, net of cash acquired | $1,580,000,000 | ' |
Acquisition of Longview Timber LLC, debt assumed | 1,070,000,000 | ' |
Acquisition of Longview Timber LLC, aggregate purchase price | $2,650,000,000 | ' |
Acquisition of Longview Timber LLC, timberlands acquired, acres | ' | 645,000 |
BUSINESS_SEGMENTS_Reconciliati
BUSINESS SEGMENTS - Reconciliation from Segment Totals to Consolidated (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | $1,964 | $1,874 | $3,700 | $3,629 |
Net contribution to earnings | 440 | 321 | 773 | 588 |
Interest expense, net of capitalized interest | -85 | -81 | -168 | -163 |
Income before income taxes (continuing and discontinued operations) | 355 | 240 | 605 | 425 |
Income taxes (continuing and discontinued operations) | -64 | -42 | -120 | -83 |
Net earnings | 291 | 198 | 485 | 342 |
Dividends on preference shares | -11 | -2 | -22 | -2 |
Net earnings attributable to Weyerhaeuser common shareholders | 280 | 196 | 463 | 340 |
Continuing operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | 1,964 | 1,874 | 3,700 | 3,629 |
Discontinued operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net contribution to earnings | 29 | 20 | 45 | 24 |
Operating segments | Continuing operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | 2,171 | 2,058 | 4,164 | 4,055 |
Net contribution to earnings | 363 | 307 | 645 | 620 |
Operating segments | Timberlands | Continuing operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | 397 | 333 | 774 | 626 |
Net contribution to earnings | 170 | 114 | 334 | 218 |
Operating segments | Wood Products | Continuing operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | 1,077 | 1,065 | 1,975 | 2,053 |
Net contribution to earnings | 102 | 136 | 166 | 314 |
Operating segments | Cellulose Fibers | Continuing operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | 490 | 476 | 951 | 950 |
Net contribution to earnings | 91 | 57 | 145 | 88 |
Operating intersegments | Continuing operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | 207 | 184 | 464 | 426 |
Operating intersegments | Timberlands | Continuing operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | 186 | 166 | 424 | 390 |
Operating intersegments | Wood Products | Continuing operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | 21 | 18 | 40 | 36 |
Intersegment eliminations | Continuing operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net sales | -207 | -184 | -464 | -426 |
Unallocated Items | Continuing operations | ' | ' | ' | ' |
Segment Reporting, Revenue Reconciling Item [Line Items] | ' | ' | ' | ' |
Net contribution to earnings | $48 | ($6) | $83 | ($56) |
NET_EARNINGS_PER_SHARE_Additio
NET EARNINGS PER SHARE - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Basic earnings per share attributable to Weyerhaeuser common shareholders | $0.48 | $0.35 | $0.79 | $0.62 |
Diluted earnings per share attributable to Weyerhaeuser common shareholders | $0.47 | $0.35 | $0.79 | $0.61 |
6.375 percent Mandatory Convertible Preference Shares, Series A | ' | ' | ' | ' |
New shares issued | ' | 13.8 | ' | ' |
New shares issued, date | ' | 24-Jun-13 | ' | ' |
NET_EARNINGS_PER_SHARE_Potenti
NET EARNINGS PER SHARE - Potential Shares Not Included in the Computation of Diluted Earnings Per Share (Detail) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Stock options | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potential shares not included in the computation of diluted earnings per share | 4,551 | 4,862 | 4,551 | 4,862 |
Performance share units | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potential shares not included in the computation of diluted earnings per share | 453 | 577 | 453 | 577 |
Preference shares | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Potential shares not included in the computation of diluted earnings per share | 24,865 | 24,865 | 24,865 | 24,865 |
INVENTORIES_Inventories_Detail
INVENTORIES - Inventories (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Total | $596 | $542 |
Logs and chips | ' | ' |
LIFO inventories | 15 | 15 |
FIFO or moving average cost inventories | 29 | 33 |
Lumber, plywood and panels | ' | ' |
LIFO inventories | 60 | 46 |
Lumber, plywood, panels and engineered lumber | ' | ' |
FIFO or moving average cost inventories | 89 | 70 |
Pulp and paperboard | ' | ' |
LIFO inventories | 112 | 97 |
FIFO or moving average cost inventories | 37 | 30 |
Other products | ' | ' |
LIFO inventories | 12 | 11 |
FIFO or moving average cost inventories | 92 | 94 |
Materials and supplies | ' | ' |
FIFO or moving average cost inventories | $150 | $146 |
INVENTORIES_Additional_informa
INVENTORIES - Additional information (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Increase in inventory amount if FIFO would have been used | $119 | $112 |
PENSION_AND_OTHER_POSTRETIREME2
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Components of Net Periodic Benefit Costs (Credits) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Pension | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost(1) | $13 | $16 | $27 | $32 |
Interest cost | 69 | 62 | 138 | 122 |
Expected return on plan assets | -116 | -111 | -232 | -220 |
Amortization of actuarial loss | 30 | 56 | 61 | 111 |
Amortization of prior service cost (credit) | 2 | 1 | 3 | 3 |
Total net periodic benefit cost (credit) | -2 | 24 | -3 | 48 |
Other Postretirement Benefits | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost(1) | 0 | 1 | 0 | 1 |
Interest cost | 2 | 3 | 5 | 6 |
Amortization of actuarial loss | 3 | 4 | 6 | 7 |
Amortization of prior service cost (credit) | -47 | -6 | -95 | -12 |
Other | 0 | 2 | -4 | 2 |
Total net periodic benefit cost (credit) | -42 | 4 | -88 | 4 |
Real Estate Divestiture | Pension | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Service cost(1) | $1 | $2 | $2 | $3 |
PENSION_AND_OTHER_POSTRETIREME3
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Increase in fair value of pension assets | $53 | ' | ' | ' | ' |
Increase in projected benefit obligation | 19 | ' | ' | ' | ' |
Net effect increase in the funded status | 34 | ' | ' | ' | ' |
Registered Canadian Pension Plan | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Expected contribution to benefit plans during 2014 | ' | ' | 53 | ' | ' |
Non Registered Canadian Pension Plans | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Expected contribution to benefit plans during 2014 | ' | ' | 3 | ' | ' |
U.S. Non-Qualified Pension Plans | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Expected contribution to benefit plans during 2014 | ' | ' | 20 | ' | ' |
U.S. and Canadian Other Postretirement Plans | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Ratably amortize a total pretax gain throughout 2014 | ' | ' | ' | ' | -177 |
Recognized gain for plan amendment | -45 | 0 | -90 | 0 | ' |
Expected contribution to benefit plans during 2014 | ' | ' | 35 | ' | ' |
U.S. Qualified Pension Plan | ' | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ' |
Expected contribution to benefit plans during 2014 | ' | ' | $0 | ' | ' |
ACCRUED_LIABILITIES_Accrued_Li
ACCRUED LIABILITIES - Accrued Liabilities (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Wages, salaries and severance pay | $135 | $159 |
Pension and postretirement | 57 | 57 |
Vacation pay | 48 | 48 |
Income taxes | 2 | 4 |
Taxes – Social Security and real and personal property | 34 | 32 |
Interest | 104 | 104 |
Customer rebates and volume discounts | 36 | 50 |
Deferred income | 75 | 82 |
Other | 106 | 93 |
Total | $597 | $629 |
FAIR_VALUE_OF_FINANCIAL_INSTRU3
FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated Fair Values and Carrying Values of Long-Term Debt (Detail) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Line Items] | ' | ' |
Long-term Debt | $4,891 | $4,891 |
Fair Value, Inputs, Level 2 | ' | ' |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Line Items] | ' | ' |
Long-term Debt, Fair Value | $6,013 | $5,683 |
LEGAL_PROCEEDINGS_COMMITMENTS_1
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES (Detail) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Line Items] | ' |
Accrued estimated remediation costs | $31 |
Asset retirement obligations | $45 |
CUMULATIVE_OTHER_COMPREHENSIVE2
CUMULATIVE OTHER COMPREHENSIVE INCOME (LOSS) - Items Included in Cumulative Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Beginning balance | ' | ' | ($686) | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | 51 | ' |
Income taxes | ' | ' | -16 | ' |
Net other comprehensive income (loss) before reclassifications | ' | ' | 35 | ' |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | ' | ' | -25 | ' |
Income taxes | ' | ' | 13 | ' |
Net amounts reclassified from cumulative other comprehensive income (loss) | ' | ' | -12 | ' |
Total other comprehensive income | 38 | 22 | 23 | 50 |
Ending balance | -663 | ' | -663 | ' |
Foreign currency translation adjustments | ' | ' | ' | ' |
Beginning balance | ' | ' | 354 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | -1 | ' |
Income taxes | ' | ' | 0 | ' |
Net other comprehensive income (loss) before reclassifications | ' | ' | -1 | ' |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | ' | ' | 0 | ' |
Income taxes | ' | ' | 0 | ' |
Net amounts reclassified from cumulative other comprehensive income (loss) | ' | ' | 0 | ' |
Total other comprehensive income | ' | ' | -1 | ' |
Ending balance | 353 | ' | 353 | ' |
Actuarial losses | Pension | ' | ' | ' | ' |
Beginning balance | ' | ' | -1,066 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | 33 | ' |
Income taxes | ' | ' | -12 | ' |
Net other comprehensive income (loss) before reclassifications | ' | ' | 21 | ' |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | ' | ' | 61 | ' |
Income taxes | ' | ' | -20 | ' |
Net amounts reclassified from cumulative other comprehensive income (loss) | ' | ' | 41 | ' |
Total other comprehensive income | ' | ' | 62 | ' |
Ending balance | -1,004 | ' | -1,004 | ' |
Actuarial losses | Other Postretirement Benefits | ' | ' | ' | ' |
Beginning balance | ' | ' | -111 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | 0 | ' |
Income taxes | ' | ' | 0 | ' |
Net other comprehensive income (loss) before reclassifications | ' | ' | 0 | ' |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | ' | ' | 6 | ' |
Income taxes | ' | ' | -1 | ' |
Net amounts reclassified from cumulative other comprehensive income (loss) | ' | ' | 5 | ' |
Total other comprehensive income | ' | ' | 5 | ' |
Ending balance | -106 | ' | -106 | ' |
Prior service credits (costs) | Pension | ' | ' | ' | ' |
Beginning balance | ' | ' | -19 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | -1 | ' |
Income taxes | ' | ' | 0 | ' |
Net other comprehensive income (loss) before reclassifications | ' | ' | -1 | ' |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | ' | ' | 3 | ' |
Income taxes | ' | ' | -1 | ' |
Net amounts reclassified from cumulative other comprehensive income (loss) | ' | ' | 2 | ' |
Total other comprehensive income | ' | ' | 1 | ' |
Ending balance | -18 | ' | -18 | ' |
Prior service credits (costs) | Other Postretirement Benefits | ' | ' | ' | ' |
Beginning balance | ' | ' | 150 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | 20 | ' |
Income taxes | ' | ' | -4 | ' |
Net other comprehensive income (loss) before reclassifications | ' | ' | 16 | ' |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | ' | ' | -95 | ' |
Income taxes | ' | ' | 35 | ' |
Net amounts reclassified from cumulative other comprehensive income (loss) | ' | ' | -60 | ' |
Total other comprehensive income | ' | ' | -44 | ' |
Ending balance | 106 | ' | 106 | ' |
Unrealized gains on available-for-sale securities | ' | ' | ' | ' |
Beginning balance | ' | ' | 6 | ' |
Other comprehensive income (loss) before reclassifications | ' | ' | 0 | ' |
Income taxes | ' | ' | 0 | ' |
Net other comprehensive income (loss) before reclassifications | ' | ' | 0 | ' |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | ' | ' | 0 | ' |
Income taxes | ' | ' | 0 | ' |
Net amounts reclassified from cumulative other comprehensive income (loss) | ' | ' | 0 | ' |
Total other comprehensive income | ' | ' | 0 | ' |
Ending balance | $6 | ' | $6 | ' |
SHAREBASED_COMPENSATION_Weight
SHARE-BASED COMPENSATION - Weighted Average Assumptions Used in Estimating the Value of Stock Options Granted (Detail) (Stock options, USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Rate | |
Stock options | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected volatility | 31.71% |
Expected dividends | 2.92% |
Expected term (in years) | '4 years 11 months 19 days |
Risk-free rate | 1.57% |
Weighted average grant date fair value | $6.62 |
SHAREBASED_COMPENSATION_Weight1
SHARE-BASED COMPENSATION - Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted (Detail) (Performance share units, USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Rate | |
Performance share units | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Performance period | '1/1/2014 – 12/31/2015 |
Valuation date closing stock price | $30.16 |
Expected dividends | 2.91% |
Risk-free rate minimum | 0.03% |
Risk-free rate maximum | 0.79% |
Expected volatility minimum | 20.74% |
Expected volatility maximum | 23.53% |
SHAREBASED_COMPENSATION_Weight2
SHARE-BASED COMPENSATION - Weighted Average Assumptions Used to Remeasure the Value of Stock Appreciation Rights (Detail) (Stock appreciation rights, USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Rate | |
Stock appreciation rights | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected volatility | 20.77% |
Expected dividends | 2.83% |
Expected term (in years) | '1 year 7 months 10 days |
Risk-free rate | 0.38% |
Weighted average fair value | $8.30 |
SHAREBASED_COMPENSATION_Additi
SHARE-BASED COMPENSATION - Additional Information (Detail) (USD $) | 6 Months Ended | 3 Months Ended | ||||||
Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
Stock options | Restricted stock units | Performance share units | Stock appreciation rights | Subsequent event | Subsequent event | Subsequent event | ||
Stock options | Restricted stock units | Performance share units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Granted | ' | 2,463,254 | ' | ' | ' | ' | ' | ' |
Granted | ' | ' | 686,310 | 321,403 | 73,605 | ' | ' | ' |
Vested | ' | ' | 432,583 | 216,622 | ' | ' | ' | ' |
Shares of common stock issued as a result of restricted stock unit vesting, performance share unit vesting and stock option exercises | 3,078,324 | ' | ' | ' | ' | ' | ' | ' |
Cancelled | ' | ' | ' | ' | ' | 1,601,107 | ' | ' |
Cancelled | ' | ' | ' | ' | ' | ' | 279,507 | 44,030 |
Weighted average exercise price of stock options granted | ' | $30.14 | ' | ' | ' | ' | ' | ' |
Weighted average fair value of units granted | ' | ' | $30.14 | $30.62 | ' | ' | ' | ' |
CHARGES_FOR_RESTRUCTURING_CLOS2
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS - Items Included in Our Restructuring, Closure and Asset Impairment Charges (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring and closure charges: | ' | ' | ' | ' |
Termination benefits | $6 | $0 | $23 | $0 |
Other restructuring and closure costs | 1 | 2 | 3 | 3 |
Charges for restructuring and closures | 7 | 2 | 26 | 3 |
Impairments of long-lived assets | 1 | 1 | 1 | 3 |
Total charges for restructuring and impairment of long-lived assets | $8 | $3 | $27 | $6 |
CHARGES_FOR_RESTRUCTURING_CLOS3
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS - Changes in accrued severance related to restructuring (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Accrued severance as of December 31, 2013 | ' | ' | $2 | ' |
Charges | 6 | 0 | 23 | 0 |
Payments | ' | ' | -9 | ' |
Accrued severance as of June 30, 2014 | $16 | ' | $16 | ' |
CHARGES_FOR_RESTRUCTURING_CLOS4
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS - Additional Information (Details) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Restructuring Cost and Reserve [Line Items] | ' |
Additional charges related to our selling general and administrative cost reduction initiative | $10 |
OTHER_OPERATING_INCOME_NET_Ite
OTHER OPERATING INCOME, NET - Items Included in Other Operating Income, Net (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Gain on disposition of non-strategic assets | ($1) | ($7) | ($24) | ($13) |
Foreign exchange losses (gains), net | -12 | 4 | 2 | 8 |
Land management income | -9 | -7 | -16 | -13 |
Other, net | 2 | 0 | -12 | -10 |
Total other operating income, net | -65 | -10 | -140 | -28 |
U.S. and Canadian Other Postretirement Plans | ' | ' | ' | ' |
Gain on postretirement plan amendment (Note 7) | ($45) | $0 | ($90) | $0 |
OTHER_OPERATING_INCOME_NET_Add
OTHER OPERATING INCOME, NET - Additional Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Mar. 31, 2014 |
Landfill in Washington State | |||||
Gain on disposition of non-strategic assets | $1 | $7 | $24 | $13 | $22 |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Rate | ||
Estimated annual effective tax rate for our Taxable REIT Subsidiary | 35.00% | ' |
Income tax credit (charge) that is excluded from the company's effective income tax rate | $0 | $0 |