DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Jan. 29, 2016 | Jun. 30, 2015 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | WY | ||
Entity Registrant Name | WEYERHAEUSER CO | ||
Entity Central Index Key | 106,535 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 510,492,965 | ||
Entity Public Float | $ 16 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $ 7,082 | $ 7,403 | $ 7,254 |
Costs of products sold | 5,694 | 5,763 | 5,716 |
Gross margin | 1,388 | 1,640 | 1,538 |
Selling expenses | 113 | 112 | 125 |
General and administrative expenses | 289 | 338 | 404 |
Research and development expenses | 24 | 27 | 33 |
Charges for restructuring, closures and impairments (Note 18) | 25 | 44 | 377 |
Other operating costs (income), net (Note 19) | 18 | (201) | (35) |
Operating income | 919 | 1,320 | 634 |
Earnings (loss) from equity affiliates | (105) | (1) | 1 |
Interest income and other | 36 | 38 | 54 |
Interest expense, net of capitalized interest | (347) | (344) | (369) |
Earnings from continuing operations before income taxes | 503 | 1,013 | 320 |
Income taxes (Note 20) | 3 | (185) | 171 |
Earnings from continuing operations | 506 | 828 | 491 |
Earnings from discontinued operations, net of income taxes (Note 3) | 0 | 998 | 72 |
Net earnings | 506 | 1,826 | 563 |
Net earnings attributable to Weyerhaeuser | 506 | 1,826 | 563 |
Dividends on preference shares | (44) | (44) | (23) |
Net earnings attributable to Weyerhaeuser common shareholders | $ 462 | $ 1,782 | $ 540 |
Basic earnings per share attributable to Weyerhaeuser common shareholders (Note 5): | |||
Continuing operations | $ 0.89 | $ 1.41 | $ 0.82 |
Discontinued operations | 0 | 1.79 | 0.13 |
Net earnings per share | 0.89 | 3.20 | 0.95 |
Diluted earnings per share attributable to Weyerhaeuser common shareholders (Note 5): | |||
Continuing operations | 0.89 | 1.40 | 0.82 |
Discontinued operations | 0 | 1.78 | 0.13 |
Net earnings per share | 0.89 | 3.18 | 0.95 |
Dividends paid per common share | $ 1.20 | $ 1.02 | $ 0.81 |
Weighted average shares outstanding (in thousands) (Note 5): | |||
Basic | 516,371 | 556,705 | 566,329 |
Diluted | 519,618 | 560,899 | 571,239 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Comprehensive income: | |||
Net earnings | $ 506 | $ 1,826 | $ 563 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (97) | (50) | (59) |
Changes in unamortized net pension and other postretirement benefit gain (loss), net of tax expense (benefit) of $131 in 2015, ($323) in 2014, and $480 in 2013 | 282 | (554) | 902 |
Changes in unamortized prior service credit (cost), net of tax expense (benefit) of ($1) in 2015, ($64) in 2014 and $23 in 2013 | (4) | (103) | 27 |
Unrealized gains on available-for-sale securities | 0 | 0 | 2 |
Total comprehensive income attributable to Weyerhaeuser shareholders | $ 687 | $ 1,119 | $ 1,435 |
CONSOLIDATED STATEMENT OF COMP4
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in unamortized net pension and other postretirement benefit gain (loss), tax expense (benefit) | $ 131 | $ (323) | $ 480 |
Changes in unamortized prior service credit (loss), tax expense (benefit) | $ (1) | $ (64) | $ 23 |
CONSOLIDATED BALANCE SHEET
CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 1,012 | $ 1,580 |
Receivables, less discounts and allowances of $3 and $3 | 487 | 525 |
Receivables for taxes | 30 | 25 |
Inventories (Note 6) | 568 | 595 |
Prepaid expenses | 77 | 80 |
Total current assets | 2,174 | 2,805 |
Property and equipment, less accumulated depreciation of $6,294 and $6,324 (Note 7) | 2,586 | 2,623 |
Construction in progress | 195 | 131 |
Timber and timberlands at cost, less depletion charged to disposals | 6,480 | 6,530 |
Investments in and advances to equity affiliates (Note 8) | 74 | 188 |
Goodwill | 40 | 40 |
Deferred tax assets (Note 20) | 4 | 44 |
Other assets | 318 | 289 |
Restricted financial investments held by variable interest entities (Note 10) | 615 | 615 |
Total assets | 12,486 | 13,265 |
LIABILITIES AND EQUITY | ||
Accounts payable | 326 | 331 |
Accrued liabilities (Note 11) | 549 | 587 |
Total current liabilities | 875 | 918 |
Long-term debt (Notes 13 and 14) | 4,891 | 4,891 |
Long-term debt (nonrecourse to the company) held by variable interest entities (Note 10) | 511 | 511 |
Deferred income taxes (Note 20) | 86 | 14 |
Deferred pension and other postretirement benefits (Note 9) | 987 | 1,319 |
Other liabilities | 267 | 308 |
Total liabilities | 7,617 | 7,961 |
Weyerhaeuser shareholders’ interest (Notes 16 and 17): | ||
Mandatory convertible preference shares, series A: $1.00 par value; $50.00 liquidation; authorized 40,000,000 shares; issued and outstanding: 13,799,711 and 13,800,000 shares (Note 4) | 14 | 14 |
Common shares: $1.25 par value; authorized 1,360,000,000 shares; issued and outstanding: 510,483,285 and 524,474,315 shares (Note 4) | 638 | 656 |
Other capital (Note 4) | 4,080 | 4,519 |
Retained earnings | 1,349 | 1,508 |
Cumulative other comprehensive loss | (1,212) | (1,393) |
Total equity | 4,869 | 5,304 |
Total liabilities and equity | $ 12,486 | $ 13,265 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Receivables, discounts and allowances | $ 3 | $ 3 |
Property and equipment, accumulated depreciation | $ 6,294 | $ 6,324 |
Common shares, par value | $ 1.25 | $ 1.25 |
Common shares, authorized | 1,360,000,000 | 1,360,000,000 |
Common shares, issued | 510,483,285 | 524,474,315 |
Common shares, outstanding | 510,483,285 | 524,474,315 |
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 | 13,799,711 | 13,800,000 |
Preference shares, outstanding | 13,799,711 | 13,800,000 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Cash flows from operations: | ||||
Net earnings | $ 506 | $ 1,826 | $ 563 | |
Noncash charges (credits) to income: | ||||
Depreciation, depletion and amortization | 479 | 500 | 472 | |
Deferred income taxes, net (Note 20) | 0 | 205 | (29) | |
Pension and other postretirement benefits (Note 9) | 42 | (152) | 101 | |
Share-based compensation expense (Note 17) | 31 | 40 | 42 | |
Charges for impairment of assets (Note 18) | 15 | 2 | 372 | |
(Earnings) loss from equity affiliates | 105 | 1 | (1) | |
Net gains on dispositions of assets and operations(1) (Note 3) | [1] | (38) | (1,050) | (58) |
Foreign exchange transaction losses (Note 19) | 47 | 27 | 7 | |
Change in, net of acquisition: | ||||
Receivables less allowances | 17 | 29 | (27) | |
Receivable for taxes | (5) | 76 | (6) | |
Inventories | 10 | (66) | (13) | |
Real estate and land | 0 | (133) | (166) | |
Prepaid expenses | 3 | 17 | (26) | |
Accounts payable and accrued liabilities | (35) | (98) | (51) | |
Deposits on land positions and other assets | 0 | 15 | (18) | |
Pension and postretirement contributions / benefit payments | (83) | (101) | (137) | |
Other | (30) | (50) | (21) | |
Net cash from operations | 1,064 | 1,088 | 1,004 | |
Cash flows from investing activities: | ||||
Property and equipment | (443) | (354) | (261) | |
Timberlands reforestation | (40) | (41) | (32) | |
Acquisition of timberlands | (36) | 0 | 0 | |
Acquisition of Longview Timber LLC, net of cash acquired (Note 4) | 0 | 0 | (1,581) | |
Net proceeds from Real Estate Divestiture, net of cash divested (Note 3) | 0 | 707 | 0 | |
Proceeds from sale of assets and operations | 19 | 28 | 20 | |
Net proceeds of investments held by special purpose entities (Note 10) | 0 | 0 | 22 | |
Other | 13 | 21 | 3 | |
Cash from investing activities | (487) | 361 | (1,829) | |
Cash flows from financing activities: | ||||
Net proceeds from issuance of common shares (Note 4) | 0 | 0 | 897 | |
Net proceeds from issuance of preference shares (Note 4) | 0 | 0 | 669 | |
Net proceeds from issuance of debt (Note 13) | 0 | 0 | 1,044 | |
Net proceeds from issuance of Weyerhaeuser Real Estate Company (WRECO) debt (Note 3) | 0 | 887 | 0 | |
Deposit of WRECO debt proceeds into escrow (Note 3) | 0 | (887) | 0 | |
Cash dividends on common shares | (619) | (563) | (458) | |
Cash dividends on preference shares | (44) | (44) | (23) | |
Change in book overdrafts | 0 | (17) | 7 | |
Payments on debt (Note 13) | 0 | 0 | (1,567) | |
Exercises of stock options | 34 | 119 | 162 | |
Repurchase of common stock (Note 16) | (518) | (203) | 0 | |
Other | 2 | 4 | 31 | |
Cash from financing activities | (1,145) | (704) | 762 | |
Net change in cash and cash equivalents | (568) | 745 | (63) | |
Cash and cash equivalents at beginning of year | 1,580 | 835 | 898 | |
Cash and cash equivalents at end of year | 1,012 | 1,580 | 835 | |
Cash paid (received) during the year for: | ||||
Interest, net of amounts capitalized of $7 in 2015, $13 in 2014 and $21 in 2013 | 347 | 319 | 366 | |
Income taxes | 14 | (37) | 8 | |
Noncash investing and financing activity: | ||||
Acquisition of Longview Timber LLC, debt assumed (Note 4) | 0 | 0 | 1,070 | |
Common shares tendered in WRECO divestiture (Note 3) | $ 0 | $ 1,954 | $ 0 | |
[1] | (1) Includes gain on timberland exchanges. |
CONSOLIDATED STATEMENT OF CASH8
CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Interest, amounts capitalized | $ 7 | $ 13 | $ 21 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Mandatory convertible preference shares, series A: | Common shares: | Other capital: | Retained earnings: | Cumulative other comprehensive loss: | Total Weyerhaeuser shareholders’ interest: | Noncontrolling interests: |
Balance at beginning of year at Dec. 31, 2012 | $ 0 | $ 678 | $ 4,731 | $ 219 | $ (1,558) | $ 43 | ||
New issuance | 14 | 42 | 1,509 | |||||
Shares tendered (Note 3) | 0 | 0 | ||||||
Exercise of stock options | 9 | 152 | ||||||
Repurchase of common shares | 0 | 0 | ||||||
Share-based compensation | 42 | |||||||
Other transactions, net | 10 | |||||||
Net earnings attributable to Weyerhaeuser | $ 563 | 563 | ||||||
Dividends on common shares (Note 16) | (465) | |||||||
Cash dividends on preference shares (Note 16) | (23) | |||||||
Foreign currency translation adjustments | (59) | (59) | ||||||
Changes in unamortized net pension and other postretirement benefit loss (Note 9) | 902 | 902 | ||||||
Changes in unamortized prior service credit (cost) (Note 9) | 27 | 27 | ||||||
Unrealized gains on available-for-sale securities | 2 | 2 | ||||||
New consolidations, de-consolidations and other transactions | (6) | |||||||
Balance at end of year at Dec. 31, 2013 | 6,832 | 14 | 729 | 6,444 | 294 | (686) | $ 6,795 | 37 |
New issuance | 0 | 0 | 0 | |||||
Shares tendered (Note 3) | (73) | (1,881) | ||||||
Exercise of stock options | 7 | 112 | ||||||
Repurchase of common shares | (7) | (196) | ||||||
Share-based compensation | 35 | |||||||
Other transactions, net | 5 | |||||||
Net earnings attributable to Weyerhaeuser | 1,826 | 1,826 | ||||||
Dividends on common shares (Note 16) | (568) | |||||||
Cash dividends on preference shares (Note 16) | (44) | |||||||
Foreign currency translation adjustments | (50) | (50) | ||||||
Changes in unamortized net pension and other postretirement benefit loss (Note 9) | (554) | (554) | ||||||
Changes in unamortized prior service credit (cost) (Note 9) | (103) | (103) | ||||||
Unrealized gains on available-for-sale securities | 0 | 0 | ||||||
New consolidations, de-consolidations and other transactions | (37) | |||||||
Balance at end of year at Dec. 31, 2014 | 5,304 | 14 | 656 | 4,519 | 1,508 | (1,393) | 5,304 | 0 |
New issuance | 0 | 0 | 0 | |||||
Shares tendered (Note 3) | 0 | 0 | ||||||
Exercise of stock options | 2 | 32 | ||||||
Repurchase of common shares | (20) | (498) | ||||||
Share-based compensation | 32 | |||||||
Other transactions, net | (5) | |||||||
Net earnings attributable to Weyerhaeuser | 506 | 506 | ||||||
Dividends on common shares (Note 16) | (621) | |||||||
Cash dividends on preference shares (Note 16) | (44) | |||||||
Foreign currency translation adjustments | (97) | (97) | ||||||
Changes in unamortized net pension and other postretirement benefit loss (Note 9) | 282 | 282 | ||||||
Changes in unamortized prior service credit (cost) (Note 9) | (4) | (4) | ||||||
Unrealized gains on available-for-sale securities | 0 | 0 | ||||||
New consolidations, de-consolidations and other transactions | 0 | |||||||
Balance at end of year at Dec. 31, 2015 | $ 4,869 | $ 14 | $ 638 | $ 4,080 | $ 1,349 | $ (1,212) | $ 4,869 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Our significant accounting policies describe: • our election to be taxed as a real estate investment trust, • how we report our results, • changes in how we report our results and • how we account for various items. OUR ELECTION TO BE TAXED AS A REAL ESTATE INVESTMENT TRUST (REIT) Starting with our 2010 fiscal year, we elected to be taxed as a 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 no longer subject to corporate taxes on built-in-gains (the excess of fair market value over tax basis at January 1, 2010) due to a change in tax law in the fourth quarter 2015, which statutorily shortened the built-in-gains tax period from 10 years to 5 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 includes our manufacturing businesses and the portion of our Timberlands segment income included in the TRS. HOW WE REPORT OUR RESULTS Our report includes: • consolidated financial statements, • our business segments, • foreign currency translation, • estimates, and • fair value measurements. CONSOLIDATED FINANCIAL STATEMENTS Our consolidated financial statements provide an overall view of our results and financial condition. They include our accounts and the accounts of entities that 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. We record our share of equity in net earnings of equity affiliates within "Earnings (loss) from equity affiliates" in our Consolidated Statement of Operations in the period in which the earnings are recorded by our equity affiliates. Throughout these Notes to Consolidated Financial Statements, unless specified otherwise, references to “Weyerhaeuser,” "the company," “we” and “our” refer to the consolidated company. OUR BUSINESS SEGMENTS We are principally engaged in: • growing and harvesting timber; and • manufacturing, distributing and selling products made from trees. Our business segments are organized based primarily on products and services. Our Business Segments and Products SEGMENT PRODUCTS AND SERVICES Timberlands Logs, timber, minerals, oil and gas and international wood products Wood Products Softwood lumber, engineered wood products, structural panels and building materials distribution Cellulose Fibers Pulp, liquid packaging board and an equity interest in a newsprint joint venture We also transfer raw materials, semifinished materials and end products among our business segments. Because of this intracompany activity, accounting for our business segments involves: • pricing products transferred between our business segments at current market values and • allocating joint conversion and common facility costs according to usage by our business segment product lines. Gains or charges not related to or allocated to an individual operating segment are held in Unallocated Items. This includes a portion of items such as: share-based compensation; pension and postretirement costs; foreign exchange transaction gains and losses associated with financing; and the elimination of intersegment profit in inventory and the LIFO reserve. FOREIGN CURRENCY TRANSLATION Local currencies are the functional currencies for most of our operations outside the U.S. We translate foreign currencies into U.S. dollars in two ways: • assets and liabilities — at the exchange rates in effect as of our balance sheet date; and • revenues and expenses — at average monthly exchange rates throughout the year. ESTIMATES We prepare our financial statements according to U.S. generally accepted accounting principles (U.S. GAAP). This requires us to make estimates and assumptions during our reporting periods and at the date of our financial statements. The estimates and assumptions affect our: • reported amounts of assets, liabilities and equity; • disclosure of contingent assets and liabilities; and • reported amounts of revenues and expenses. While we do our best in preparing these estimates, actual results can and do differ from those estimates and assumptions. FAIR VALUE MEASUREMENTS We use a fair value hierarchy in accounting for certain nonfinancial assets and liabilities including: • long-lived assets (asset groups) measured at fair value for an impairment assessment, • reporting units measured at fair value in the first step of a goodwill impairment test, • nonfinancial assets and nonfinancial liabilities measured at fair value in the second step of a goodwill impairment assessment, • assets acquired and liabilities assumed in a business acquisition and • asset retirement obligations initially measured at fair value. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: • Level 1 — Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs are: – quoted prices for similar assets or liabilities in an active market; – quoted prices for identical or similar assets or liabilities in markets that are not active; or – inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data. • Level 3 — Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. CHANGES IN HOW WE REPORT OUR RESULTS Changes in how we report our results come from: • accounting changes made upon our adoption of new accounting guidance and • our reclassification of certain balances and results from prior years to make them consistent with our current reporting. RECLASSIFICATIONS We have reclassified certain balances and results from the prior years to be consistent with our 2015 reporting. This makes year-to-year comparisons easier. Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders’ interest. Our reclassifications present the results of operations discontinued in 2014 separately on our Consolidated Statement of Operations and in the related footnotes. Note 3: Discontinued Operations provides more information about our discontinued operations. NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09 for an additional year. We plan to adopt the standard on January 1, 2018 and 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. In April 2015, FASB issued ASU 2015-03, which amends the presentation of debt issuance costs on the consolidated balance sheet. Under the new guidance, debt issuance costs are presented as a direct deduction from the carrying amount of the debt liability rather than as an asset. The new guidance is effective retrospectively for fiscal periods starting after December 15, 2015 and early adoption is permitted. We expect to adopt ASU 2015-03 on January 1, 2016 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 2015, FASB issued ASU 2015-07, which clarifies the presentation within the fair value hierarchy of certain investments held within our pension plan. The new guidance is effective retrospectively for fiscal periods starting after December 15, 2015 and early adoption is permitted. We expect to adopt ASU 2015-07 on January 1, 2016. This new guidance eliminates the requirement to categorize certain pension investments in the fair value hierarchy. Upon adoption these investments will be presented separately from the fair value hierarchy and reconciled to total investments in our consolidated financial statements and related disclosures. In July 2015, FASB issued ASU 2015-11, which simplifies the measurement of inventories valued under most methods, including our inventories valued under FIFO – the first-in, first-out – and moving average cost methods. Inventories valued under LIFO – the last-in, first-out method – are excluded. Under this new guidance, inventories valued under these methods would be valued at the lower of cost or net realizable value, with net realizable value defined as the estimated selling price less reasonable costs to sell the inventory. The new guidance is effective prospectively for fiscal periods starting after December 15, 2016 and early adoption is permitted. We expect to adopt ASU 2015-11 on January 1, 2017 and are evaluating the impact on our consolidated financial statements and related disclosures. In September 2015, FASB issued ASU 2015-16, which requires an acquirer in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The update also requires the acquirer to record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects that result from the change to provisional amounts, calculated as if the accounting had been completed at the acquisition date, and to disclose the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The new guidance is effective prospectively for fiscal periods starting after December 15, 2015 and early adoption is permitted. We expect to adopt ASU 2015-16 on January 1, 2016 and have determined that its adoption will not have a material impact on our consolidated financial statements and related disclosures at that time. In November 2015, FASB issued ASU 2015-17, which simplifies the presentation of deferred income taxes by no longer requiring deferred tax assets and liabilities to be classified as current or noncurrent, instead requiring that all deferred tax assets and liabilities be classified as noncurrent. The new guidance is effective for annual periods starting after December 15, 2017 and early adoption is permitted. We elected to adopt ASU 2015-17 effective October 1, 2015 and have reclassified deferred tax assets and liabilities accordingly in our consolidated balance sheet and in related disclosures for all periods presented. HOW WE ACCOUNT FOR VARIOUS ITEMS This section provides information about how we account for certain key items related to: • capital investments, • financing our business and • operations. ITEMS RELATED TO CAPITAL INVESTMENTS Key items related to accounting for capital investments pertain to property and equipment, timber and timberlands, impairment of long-lived assets and goodwill. Property and Equipment We maintain property accounts on an individual asset basis. Here is how we handle major items: • Improvements to and replacements of major units of property are capitalized. • Maintenance, repairs and minor replacements are expensed. • Depreciation is calculated using a straight-line method at rates based on estimated service lives. • Logging roads are generally amortized — as timber is harvested — at rates based on the volume of timber estimated to be removed. • Cost and accumulated depreciation of property sold or retired are removed from the accounts and the gain or loss is included in earnings. Timber and Timberlands We carry timber and timberlands at cost less depletion charged to disposals. Depletion refers to the carrying value of timber that is harvested, lost as a result of casualty, or sold. Key activities affecting how we account for timber and timberlands include: • reforestation, • depletion and • forest management in Canada. Reforestation. Generally, we capitalize initial site preparation and planting costs as reforestation. We transfer reforestation to a merchantable timber classification when the timber is considered harvestable. That generally occurs after: • 15 years in the South and • 30 years in the West. Generally, we expense costs after the first planting as they are incurred or over the period of expected benefit. These costs include: • fertilization, • vegetation and insect control, • pruning and precommercial thinning, • property taxes and • interest. Accounting practices for these costs do not change when timber becomes merchantable and harvesting starts. Depletion. To determine depletion rates, we divide the net carrying value of timber by the related volume of timber estimated to be available over the growth cycle. To determine the growth cycle volume of timber, we consider: • regulatory and environmental constraints, • our management strategies, • inventory data improvements, • growth rate revisions and recalibrations and • known dispositions and inoperable acres. We include the cost of timber harvested in the carrying values of raw materials and product inventories. As these inventories are sold to third parties, we include them in the cost of products sold. Forest management in Canada. We managed timberlands under long-term licenses in various Canadian provinces that are: • granted by the provincial governments; • granted for initial periods of 15 to 25 years; and • renewable provided we meet reforestation, operating and management guidelines. Calculation of the fees we pay on the timber we harvest: • varies from province to province, • is tied to product market pricing and • depends upon the allocation of land management responsibilities in the license. Impairment of Long-Lived Assets We review long-lived assets — including certain identifiable intangibles — for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Impaired assets held for use are written down to fair value. Impaired assets held for sale are written down to fair value less cost to sell. We determine fair value based on: • appraisals, • market pricing of comparable assets, • discounted value of estimated cash flows from the asset and • replacement values of comparable assets. Goodwill Goodwill is the purchase price minus the fair value of net assets acquired when we buy another entity. We assess goodwill for impairment: • using a fair-value-based approach and • at least annually — at the beginning of the fourth quarter. In 2015 the fair value of the reporting unit with goodwill substantially exceeded its carrying value. ITEMS RELATED TO FINANCING OUR BUSINESS Key items related to financing our business include financial instruments, cash and cash equivalents, accounts payable and concentration of risk. Financial Instruments We estimate the fair value of financial instruments where appropriate. The assumptions we use — including the discount rate and estimates of cash flows — can significantly affect our fair-value amounts. Our fair values are estimates and may not match the amounts we would realize upon sale or settlement of our financial positions. Cash and Cash Equivalents Cash equivalents are investments with original maturities of 90 days or less. We state cash equivalents at cost, which approximates market. Accounts Payable Our banking system replenishes our major bank accounts daily as checks we have issued are presented for payment. As a result, we have negative book cash balances due to outstanding checks that have not yet been paid by the bank. These negative balances are included in accounts payable on our Consolidated Balance Sheet . Changes in these negative cash balances are reported as financing activities in our Consolidated Statement of Cash Flows . We had no negative book cash balances as of December 31, 2015 and December 31, 2014 . Concentration of Risk We disclose customers that represent a concentration of credit risk. As of December 31, 2015 , no customer accounted for 10 percent or more of our net sales or accounts receivable balances. ITEMS RELATED TO OPERATIONS Key items related to operations include revenue recognition, inventories, shipping and handling costs, income taxes, share-based compensation, pension and other postretirement plans, and environmental remediation. Revenue Recognition Operations generally recognize revenue upon shipment to customers. For certain export sales, revenue is recognized when title transfers at the foreign port. For timberland sales, we recognize revenue when title and possession have been transferred to the buyer and all other criteria for sale and profit recognition have been satisfied. Inventories We state inventories at the lower of cost or market. Cost includes labor, materials and production overhead. 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. Shipping and Handling Costs We classify shipping and handling costs in the costs of products sold in our Consolidated Statement of Operations . Income Taxes We account for income taxes under the asset and liability method. Unrecognized tax benefits represent potential future funding obligations to taxing authorities if uncertain tax positions the company has taken on previously filed tax returns are not sustained. In accordance with the company’s accounting policy, accrued interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. We recognize deferred tax assets and liabilities to reflect: • future tax consequences due to differences between the carrying amounts for financial purposes and the tax bases of certain items and • operating loss and tax credit carryforwards. To measure deferred tax assets and liabilities, we: • determine when the differences between the carrying amounts and tax bases of affected items are expected to be recovered or resolved and • use enacted tax rates expected to apply to taxable income in those years. Share-Based Compensation We generally measure the fair value of share-based awards on the dates they are granted or modified. These measurements establish the cost of the share-based awards for accounting purposes. We then recognize the cost of share-based awards in our Consolidated Statement of Operations over each employee’s required service period. Note 17: Share-Based Compensation provides more information about our share-based compensation. Pension and Other Postretirement Benefit Plans We recognize the overfunded or underfunded status of our defined benefit pension and other postretirement plans on our Consolidated Balance Sheet and recognize changes in the funded status through comprehensive income (loss) in the year in which the changes occur. Actuarial valuations determine the amount of the pension and other postretirement benefit obligations and the net periodic benefit cost we recognize. The net periodic benefit cost includes: • cost of benefits provided in exchange for employees’ services rendered during the year; • interest cost of the obligations; • expected long-term return on fund assets; • gains or losses on plan settlements and curtailments; • amortization of prior service costs and plan amendments over the average remaining service period of the active employee group covered by the plans or the average remaining life expectancy in situations where the plan participants affected by the plan amendment are inactive; and • amortization of cumulative unrecognized net actuarial gains and losses — generally in excess of 10 percent of the greater of the benefit obligation or market-related value of plan assets at the beginning of the year — over the average remaining service period of the active employee group covered by the plans or the average remaining life expectancy in situations where the plan participants are inactive. Pension plans. We have pension plans covering most of our employees. Determination of benefits differs for salaried, hourly and union employees: • Salaried employee benefits are based on each employee’s highest monthly earnings for five consecutive years during the final 10 years before retirement. • Hourly and union employee benefits generally are stated amounts for each year of service. • Union employee benefits are set through collective-bargaining agreements. We contribute to our U.S. and Canadian pension plans according to established funding standards. The funding standards for the plans are: • U.S. pension plans — according to the Employee Retirement Income Security Act of 1974; and • Canadian pension plans — according to the applicable provincial pension act and the Income Tax Act. Postretirement benefits other than pensions. We provide certain postretirement health care and life insurance benefits for some retired employees. In some cases, we pay a portion of the cost of the benefit. Note 9: Pension and Other Postretirement Benefit Plans provides additional information about changes made in our postretirement benefit plans during 2015 and 2014 . Environmental Remediation We accrue losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when the recovery is deemed probable and does not exceed the amount of losses previously recorded. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 31, 2015 | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS Our business segments and how we account for those segments are discussed in Note 1: Summary of Significant Accounting Policies . This note provides key financial data by business segment. DISCONTINUED OPERATIONS In 2014 we disposed of Weyerhaeuser Real Estate Company (WRECO) that is excluded from the segment results below. See Note 3: Discontinued Operations for information regarding our discontinued operations and the segments affected. KEY FINANCIAL DATA BY BUSINESS SEGMENT Sales and Contribution (Charge) to Earnings DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS WOOD PRODUCTS CELLULOSE FIBERS UNALLOCATED ITEMS (1) AND INTERSEGMENT ELIMINATIONS CONSOLIDATED Sales to unaffiliated customers 2015 $ 1,350 $ 3,872 $ 1,860 $ — $ 7,082 2014 $ 1,497 $ 3,970 $ 1,936 $ — $ 7,403 2013 $ 1,343 $ 4,009 $ 1,902 $ — $ 7,254 Intersegment sales 2015 $ 830 $ 82 $ — $ (912 ) $ — 2014 $ 867 $ 80 $ — $ (947 ) $ — 2013 $ 799 $ 71 $ — $ (870 ) $ — Contribution (charge) to earnings from continuing operations 2015 $ 549 $ 258 $ 119 $ (76 ) $ 850 2014 $ 613 $ 327 $ 291 $ 126 $ 1,357 2013 $ 470 $ 441 $ 200 $ (422 ) $ 689 (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 financing, and the elimination of intersegment profit in inventory and the LIFO reserve. Management evaluates segment performance based on the contributions to earnings of the respective segments. An analysis and reconciliation of our business segment information to the consolidated financial statements follows: Reconciliation of Contribution to Earnings to Net Earnings Attributable to Weyerhaeuser DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Net contribution to earnings from continuing operations $ 850 $ 1,357 $ 689 Net contribution to earnings from discontinued operations — 1,017 116 Total contribution to earnings 850 2,374 805 Interest expense, net of capitalized interest (continuing and discontinued operations) (347 ) (347 ) (371 ) Income before income taxes (continuing and discontinued operations) 503 2,027 434 Income taxes (continuing and discontinued operations) 3 (201 ) 129 Net earnings attributable to Weyerhaeuser $ 506 $ 1,826 $ 563 Additional Financial Information DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS WOOD PRODUCTS CELLULOSE FIBERS UNALLOCATED ITEMS CONSOLIDATED Depreciation, depletion and amortization 2015 $ 209 $ 106 $ 154 $ 10 $ 479 2014 $ 207 $ 119 $ 155 $ 12 $ 493 2013 $ 166 $ 123 $ 156 $ 13 $ 458 Net pension and postretirement cost (credit) (1) 2015 $ 9 $ 27 $ 17 $ (11 ) $ 42 2014 $ 10 $ 24 $ 11 $ (45 ) $ — 2013 $ 10 $ 28 $ 18 $ 40 $ 96 Charges for restructuring, closures and impairments (2) 2015 $ — $ 10 $ — $ 15 $ 25 2014 $ 1 $ 2 $ — $ 41 $ 44 2013 $ 2 $ 13 $ — $ 362 $ 377 Earnings (loss) from equity affiliates 2015 $ — $ — $ (105 ) $ — $ (105 ) 2014 $ — $ — $ (1 ) $ — $ (1 ) 2013 $ — $ — $ 3 $ (2 ) $ 1 Capital expenditures 2015 $ 75 $ 287 $ 118 $ 3 $ 483 2014 $ 74 $ 190 $ 123 $ 4 $ 391 2013 $ 73 $ 113 $ 92 $ 5 $ 283 Investments in and advances to equity affiliates and unconsolidated entities 2015 $ — $ — $ 74 $ — $ 74 2014 $ — $ — $ 188 $ — $ 188 2013 $ — $ — $ 190 $ — $ 190 Total assets (3) 2015 $ 7,260 $ 1,541 $ 1,984 $ 1,701 $ 12,486 2014 $ 7,327 $ 1,430 $ 2,214 $ 2,294 $ 13,265 2013 $ 7,578 $ 1,326 $ 2,299 $ 3,169 $ 14,372 (1) Net pension and postretirement cost (credit) excludes special items, as well as the recognition of curtailments, settlements and special termination benefits due to closures, restructuring or divestitures. See Note 9: Pension and Other Postretirement Benefit Plans for more information. Note 18: Charges for Restructuring, Closures and Asset Impairments for more information (3) Unallocated Items total assets includes assets of discontinued operations in 2013. STRATEGIC EVALUATION OF CELLULOSE FIBERS On November 8, 2015 Weyerhaeuser announced that the board of directors authorized the exploration of strategic alternatives for its Cellulose Fibers business segment. At this time there can be no assurance that the board's evaluation process will result in any transaction or that any transaction, if pursued, will be consummated. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS We have made certain reclassifications in our consolidated financial statements to reflect discontinued operations related to WRECO which was previously reported under the Real Estate segment and Unallocated Items. OPERATIONS INCLUDED IN DISCONTINUED OPERATIONS Divestiture of WRECO On July 7, 2014 , we completed the following set of transactions resulting in our homebuilding and real estate development business becoming wholly-owned by TRI Pointe Homes, Inc. (TRI Pointe): • the distribution of shares of WRECO to our shareholders in exchange for 59 million shares of our common stock; and • the merger of WRECO into a special purpose subsidiary of TRI Pointe, with WRECO surviving the merger and becoming a wholly-owned subsidiary of TRI Pointe. Collectively, these transactions are referred to as the “Real Estate Divestiture”. During June 2014, our wholly-owned subsidiary, WRECO, issued $900 million of unsecured and unsubordinated senior debt obligations. The net proceeds after deducting the discount, underwriting fees and issuance costs were $870 million . At the close of the Real Estate Divestiture in July 2014, WRECO used $744 million of the debt proceeds to repay intercompany debt and interest to Weyerhaeuser Company. The newly issued debt, remaining proceeds and other WRECO assets and liabilities, including $5 million cash on hand, were acquired by TRI Pointe when WRECO became a wholly-owned subsidiary of TRI Pointe at the closing of the transaction. Additionally, $32 million related to the adjustment amount payable pursuant to the terms of the transaction agreement was paid to TRI Pointe. Our net cash proceeds in connection with the Real Estate Divestiture totaled $707 million . 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. The following table presents the components of the net gain on divestiture: DOLLAR AMOUNTS IN MILLIONS 2014 Proceeds: Common shares tendered (58,813,151 shares at $33.22 per share) $ 1,954 Cash 707 2,661 Less: Net book value of contributed assets (1,671 ) Transaction costs, net of reimbursement (18 ) (1,689 ) Gain on WRECO divestiture $ 972 The net gain on the Real Estate Divestiture of $972 million is not taxable and was recognized in 2014 in discontinued operations. NET EARNINGS FROM DISCONTINUED OPERATIONS Sales and Net Earnings from Discontinued Operations 2014 (1) 2013 Net sales from discontinued operations $ 573 $ 1,275 Income from discontinued operations 42 114 Income taxes (16 ) (42 ) Net income from operations 26 72 Net gain on divestiture 972 — Net earnings from discontinued operations 998 72 (1) Discontinued operations in 2014 covered only 188 days. Results of discontinued operations exclude certain general corporate overhead costs that have been allocated to and are included in contribution to earnings for the operating segments. CARRYING VALUE OF ASSETS AND LIABILITES OF DISCONTINUED OPERATIONS The following table shows carrying values for assets and liabilities classified as discontinued operations as of December 31, 2013 . Carrying Value of Assets and Liabilities of Discontinued Operations DOLLAR AMOUNTS IN MILLIONS December 31, 2013 Assets Cash and cash equivalents $ 5 Receivables, less discounts and allowances 51 Prepaid expenses 11 Total current assets 67 Property and equipment, net 15 Real estate in process of development and for sale 851 Land being processed for development 596 Investments in and advances to equity affiliates 21 Deferred tax assets 136 Other assets 96 Total noncurrent assets 1,715 Total assets $ 1,782 Liabilities Accounts payable $ 41 Accrued liabilities 113 Total current liabilities 154 Long-term debt (nonrecourse to the company) held by variable interest entities 5 Other liabilities 27 Total noncurrent liabilities 32 Total liabilities $ 186 Noncontrolling interests $ 34 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2015 | |
Business Acquisition [Line Items] | |
LONGVIEW TIMBER PURCHASE | ACQUISITIONS PENDING MERGER WITH PLUM CREEK On November 6, 2015 Weyerhaeuser Company and Plum Creek Timber, Inc., entered into an Agreement and Plan of Merger (“Merger Agreement”) pursuant to which Plum Creek will merge with and into Weyerhaeuser Company with Weyerhaeuser continuing as the surviving corporation. Under the terms of the Merger Agreement, Plum Creek shareholders will receive 1.60 shares of Weyerhaeuser common shares for each share of Plum Creek common stock at the closing date. Plum Creek is a REIT that owns and manages timberlands in the United States. In addition Plum Creek produces wood products, develops opportunities for mineral and other natural resource extraction, and develops and sells real estate properties. Because the exchange ratio was fixed at the time of the merger agreement and the market value of our common stock will continue to fluctuate, the total value of the consideration exchanged will not be determinable until the closing date. The number of shares to be issued with respect to Plum Creek stock awards will not be determinable until the closing of the transaction. We have estimated the total consideration expected to be issued to Plum Creek shareholders in the merger to be 278 million shares of our common stock based on the 1.60 exchange ratio and the number of shares of Plum Creek common stock issued and outstanding as of November 30, 2015. The merger agreement has been approved by both companies' board of directors. The closing of the merger is subject to approval by the shareholders of Plum Creek, the approval by our shareholders of the issuance of Weyerhaeuser Company common stock to Plum Creek's shareholders, receipt of certain regulatory approvals and other conditions specified in the merger agreement. The merger is expected to close in the first quarter of 2016. 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 2012 DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES 2013 Net sales $ 7,371 Net earnings from continuing operations attributable to Weyerhaeuser common shareholders $ 485 Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, basic $ 0.84 Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, diluted $ 0.83 Estimated Fair Values of Identifiable Assets Acquired and Liabilities Assumed as of the Acquisition Date DOLLAR AMOUNTS IN MILLIONS July 23, Measurement Period Adjustments December 31, Current assets $ 46 $ — $ 46 Property and equipment 39 1 40 Timber and timberlands 2,654 2 2,656 Other assets 2 — 2 Total assets acquired 2,741 3 2,744 Current liabilities 10 — 10 Long-term debt 1,122 — 1,122 Other liabilities 5 3 8 Total liabilities assumed 1,137 3 1,140 Net assets acquired $ 1,604 $ — $ 1,604 The initial allocations of purchase price were recorded at the estimated fair value of assets acquired and liabilities assumed based upon the best information available to management. The purchase price allocation was finalized in the fourth quarter 2013. The measurement period adjustments reflect additional information obtained to record the fair value of certain assets acquired and liabilities assumed based on facts and circumstances existing as of the acquisition date. In order to finance our purchase of Longview Timber, we issued the following: • 29 million common shares on June 24, 2013 , at the price of $27.75 per share for net proceeds of $781 million ; • 4.4 million common shares on July 8, 2013 , at the price of $27.75 per share for net proceeds of $116 million , in connection with the exercise of an overallotment option; and • 13.8 million of our 6.375 percent Mandatory Convertible Preference Shares, Series A, par value $1.00 and liquidation preference of $50.00 per share on June 24, 2013 , for net proceeds of $669 million . See Note 16: Shareholders' Interest for more information. For issuances of shares, excess of par value is recorded in "Other capital" in our Consolidated Balance Sheet . Proceeds were used to finance the acquisition and pay related fees and expenses. We paid $11 million in fees related to a bridge loan in 2013. As of the close of the Longview Timber purchase, we did not draw from the loan and these fees were expensed in 2013, which is recorded in "Interest expense" in our Consolidated Statement of Operations . We obtained additional debt financing in 2013 which was used to repay all of the assumed debt in 2013. See Note 13: Long-term Debt . |
NET EARNINGS PER SHARE
NET EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2015 | |
NET EARNINGS PER SHARE | NET EARNINGS PER SHARE Our basic earnings per share attributable to Weyerhaeuser common shareholders for the last three years were: • $0.89 in 2015 , • $3.20 in 2014 and • $0.95 in 2013 . Our diluted earnings per share attributable to Weyerhaeuser common shareholders for the last three years were: • $0.89 in 2015 , • $3.18 in 2014 and • $0.95 in 2013 . This note discloses: • how we calculate basic and diluted net earnings per share and • shares excluded from dilutive effect. HOW WE CALCULATE BASIC AND DILUTED NET EARNINGS PER SHARE "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 may 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 years ended December 31, 2015 and 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. See Note 4: Acquisitions . Potential Shares Not Included in the Computation of Diluted Earnings per Share Shares in thousands 2015 2014 2013 Stock options 5,016 — 4,618 Performance share units 155 — — Preference Shares 25,307 24,988 24,865 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2015 | |
INVENTORIES | INVENTORIES Inventories include raw materials, work-in-process and finished goods. Inventories as of the End of Our Last Two Years DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, LIFO inventories: Logs and chips $ 15 $ 9 Lumber, plywood and panels 48 55 Pulp and paperboard 111 122 Other products 11 11 FIFO or moving average cost inventories: Logs and chips 38 38 Lumber, plywood, panels and engineered wood products 75 80 Pulp and paperboard 32 35 Other products 90 96 Materials and supplies 148 149 Total $ 568 $ 595 If we used FIFO for all inventories, our stated inventories would have been $124 million and $120 million higher as of December 31, 2015 and December 31, 2014 , respectively. HOW WE ACCOUNT FOR OUR INVENTORIES The Inventories section of Note 1: Summary of Significant Accounting Policies provides details about how we account for our inventories. |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment includes land, buildings and improvements, machinery and equipment, roads and other items. Carrying Value of Property and Equipment and Estimated Service Lives DOLLAR AMOUNTS IN MILLIONS RANGE OF LIVES DECEMBER 31, DECEMBER 31, Property and equipment, at cost: Land N/A $ 121 $ 127 Buildings and improvements 10–40 1,208 1,220 Machinery and equipment 2–25 6,675 6,706 Roads 10–20 624 609 Other 3–10 252 285 Total cost 8,880 8,947 Allowance for depreciation and amortization (6,294 ) (6,324 ) Property and equipment, net $ 2,586 $ 2,623 SERVICE LIVES AND DEPRECIATION Buildings and improvements for property and equipment have estimated lives that are generally at either the high end or low end of the range from 10 years to 40 years , depending on the type and performance of construction. The maximum service lives for machinery and equipment varies among our operations: • Timberlands — 15 years ; • Wood products manufacturing facilities — 20 years ; and • Pulp mills — 25 years . Depreciation expense, excluding discontinued operations, was: • $314 million in 2015 , • $332 million in 2014 and • $332 million in 2013 . |
EQUITY AFFILIATES
EQUITY AFFILIATES | 12 Months Ended |
Dec. 31, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
EQUITY AFFILIATES | EQUITY AFFILIATES We have investments in unconsolidated equity affiliates over which we have significant influence that we account for using the equity method with taxes provided on undistributed earnings. We record our share of net earnings within "Earnings (loss) from equity affiliates" in our Consolidated Statement of Operations in the period in which earnings are recorded by the affiliates. Details About Our Equity Affiliates As of December 31, 2015 , we hold a 50 percent ownership interest in North Pacific Paper Corporation (NORPAC). NORPAC owns and operates a newsprint manufacturing facility in Longview, Washington. Our share of the net earnings of NORPAC is reported in our Cellulose Fibers segment. In the fourth quarter of 2015, it was determined that the joint venture’s book value of certain long-lived assets was not recoverable and an impairment charge was recorded to measure these assets at fair value. The fair value of the asset group was estimated based on a combination of income and market approaches using significant unobservable inputs. Key assumptions include (a) the timing and amounts of future cash flows related to the asset group’s operations, (b) discount rates applicable to the future cash flows ranging from 10.5 percent to 14 percent and (c) earnings multiples of other entities’ asset groups deemed to be similar to the asset group. Weyerhaeuser’s earnings include an $84 million charge for our share of this asset impairment. Weyerhaeuser also recorded a related additional tax benefit of $28 million in its provision for income taxes as a result of the reduction of deferred tax liabilities associated with the reduction in the book basis of the investment in this equity affiliate. As such, the net charge to Weyerhaeuser related to this item was $56 million in the fourth quarter of 2015. During 2014, Catchlight Energy was dissolved. We received no proceeds from the dissolution. During 2013, we sold part of our investment in Liaison Technologies Inc. and recognized a $10 million pretax gain, which is recorded in "Interest income and other" on our Consolidated Statement of Operations and within Unallocated Items. Our remaining investment is accounted for under the cost method. Unconsolidated Financial Information of Equity Affiliates Aggregated assets, liabilities and operating results of the entities that we accounted for as equity affiliates are provided below. Assets and Liabilities of Equity Affiliates DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Current assets $ 89 $ 123 Noncurrent assets $ 101 $ 413 Current liabilities $ 25 $ 30 Noncurrent liabilities $ 6 $ 109 Operating Results of Equity Affiliates DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Net sales $ 462 $ 501 $ 534 Operating income (loss) $ (311 ) $ (2 ) $ 3 Net income (loss) $ (197 ) $ — $ 3 Doing Business with Affiliates We provide goods and services to NORPAC, including raw materials and support services. The amounts paid to Weyerhaeuser by NORPAC for goods and services were: • $197 million in 2015 , • $195 million in 2014 and • $203 million in 2013 . In addition, we manage cash for NORPAC under a services agreement. Weyerhaeuser holds the cash and records a payable balance to NORPAC, which is included in accounts payable in the accompanying Consolidated Balance Sheet . We had the following payable balances to NORPAC: • $46 million at December 31, 2015 ; and • $75 million at December 31, 2014 . |
PENSION AND OTHER POSTRETIREMEN
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2015 | |
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS | PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS We sponsor several retirement programs for our employees. This note provides details about: • types of plans we sponsor, • significant transactions and events affecting plans we sponsor, • funded status of plans we sponsor, • pension assets, • activity of plans we sponsor and • actuarial assumptions. TYPES OF PLANS WE SPONSOR The plans we sponsor in the U.S. and Canada differ according to each country’s requirements. In the U.S., our pension plans are: • qualified — plans that qualify under the Internal Revenue Code; and • nonqualified — plans for select employees that provide additional benefits not qualified under the Internal Revenue Code. In Canada, our pension plans are: • registered — plans that are registered under the Income Tax Act and applicable provincial pension acts; and • nonregistered — plans for select employees that provide additional benefits that may not be registered under the Income Tax Act or provincial pension acts. We also offer retiree medical and life insurance plans in the U.S. and Canada. These plans are referred to as other postretirement benefit plans in the following disclosures. Employee Eligibility and Accounting The Pension and Other Postretirement Benefit Plans section of Note 1: Summary of Significant Accounting Policies provides information about employee eligibility for pension plans and postretirement health care and life insurance benefits, as well as how we account for the plans and benefits. See "Effects of Significant Transactions and Events" below for changes to eligibility in the pension and other postretirement benefit plans. Measurement Date We measure the fair value of pension plan assets and pension and other postretirement benefit obligations as of the end of our fiscal year. The fair value of pension plan assets are estimated at the end of the year and are revised in the first half of the following year when the information needed to finalize fair values is received. Additionally, we receive updated census data that is used to estimate our projected benefit obligation. As a result of the Real Estate Divestiture as well as our selling, general and administrative cost reduction initiative, we remeasured our U.S. qualified pension plan during third quarter 2014. There were no significant events that triggered a special remeasurement in 2015 or 2013. EFFECTS OF SIGNIFICANT TRANSACTIONS AND EVENTS The information that is provided in this note is affected by the following transactions and events. Amendments of Pension and Other Postretirement Benefit Plans for Salaried Employees Pension Benefit Plan Amendments During fourth quarter 2013, we ratified an amendment to the Weyerhaeuser Pension Plan that closes the plan to newly hired and rehired salaried or non union employees effective January 1, 2014. Certain union employee groups adopted similar amendments effective at other dates. Beginning at the effective date, new hires and rehires into groups affected by these amendments will receive a company contribution for retirement in their 401(k) plan. The change was announced in December 2013. During fourth quarter 2013, we ratified amendments to the Weyerhaeuser Company Limited Retirement Plan for Non-Union Employees and the Retirement Plan for Non-Union Employees of Weyerhaeuser Company Limited at Grand Prairie, Alberta and Grande Cache, Alberta that (1) closes these plans to new hires and rehires effective January 1, 2014 and (2) changes the early retirement reduction for current employees enrolled in these plans, effective for future years of service beginning January 1, 2016. These changes were announced to participants in December 2013. There were no material pension benefit plan amendments in 2014 or 2015. Postretirement Medical and Life Insurance Benefit Plan Amendments During fourth quarter 2014, the decision was ratified to reinstate or modify available options for U.S. and Canadian postretirement benefits for certain retirees. As a result, our postretirement obligation increased by $45 million . During fourth quarter 2013, the decision was ratified to eliminate Company funding of the Post-Medicare Health Reimbursement Account (HRA) for certain salaried retirees after 2014. This change was communicated to affected retirees during January 2014. As a result, we recognized a pretax gain of $151 million in 2014 from this plan amendment. There were no material postretirement medical or life insurance benefit plan amendments in 2015. Midyear Remeasurement of Assets and Liabilities Our pension plans are typically remeasured as of fiscal year-end unless a significant event occurs that requires remeasurement. As a result of the Real Estate Divestiture as well as our selling, general and administrative cost reduction initiative, we remeasured our U.S. qualified pension plan during third quarter 2014. There were no midyear remeasurements during 2015. The net effect of the 2014 remeasurement was as follows: • We recognized a $9 million charge in third quarter 2014 for curtailments and special termination benefits. Of this amount, $6 million is included in the net gain on the Real Estate Divestiture and is presented in "Earnings from discontinued operations, net of income taxes" in our Consolidated Statement of Operations . The remaining $3 million is included in "Charges for restructuring, closures and impairments" in our Consolidated Statement of Operations . • The funded status of our U.S. qualified pension plan was reduced by $291 million primarily as a result of a decline in the discount rate used to calculate the projected benefit obligation and also due to asset performance and curtailment and special terminations. The discount rate used to remeasure the pension plans’ liabilities was changed from a rate of 4.9 percent at December 31, 2013 to rates reflective of current bond rates on the remeasurement date. A discount rate of 4.4 percent was used as of July 7, 2014. There was no change to the expected rate of return assumption. • Deferred tax liabilities decreased $108 million . • Total equity decreased $183 million for changes in "Cumulative other comprehensive loss", reflecting the net effect of the items discussed above. Amounts deferred in cumulative other comprehensive loss will be amortized into net periodic pension cost (credits) in future periods. FUNDED STATUS OF PLANS WE SPONSOR The funded status of the plans we sponsor is determined by comparing the projected benefit obligation with the fair value of plan assets at the end of the year. Changes in Projected Benefit Obligations of Our Pension and Other Postretirement Benefit Plans DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2015 2014 2015 2014 Reconciliation of projected benefit obligation: Projected benefit obligation beginning of year $ 6,698 $ 5,834 $ 303 $ 321 Service cost 57 53 — 1 Interest cost 265 271 9 10 Plan participants’ contributions — — 9 13 Actuarial (gains) losses (309 ) 1,006 (34 ) 4 Foreign currency translation (159 ) (87 ) (15 ) (7 ) Benefits paid (includes lump sum settlements) (342 ) (391 ) (32 ) (44 ) Plan amendments and other (1 ) 1 — 2 Special/contractual termination benefits — 7 — — Plan transfer/Acquisitions 2 4 — 3 Projected benefit obligation at end of year $ 6,211 $ 6,698 $ 240 $ 303 Changes in Fair Value of Plan Assets DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2015 2014 2015 2014 Fair value of plan assets at beginning of year (estimated) $ 5,643 $ 5,614 $ — $ — Adjustment for final fair value of plan assets 57 53 — — Actual return on plan assets 226 368 — — Foreign currency translation (155 ) (75 ) — — Employer contributions and benefit payments 60 70 23 31 Plan participants’ contributions — — 9 13 Plan transfer/Acquisitions 2 4 — — Benefits paid (includes lump sum settlements) (342 ) (391 ) (32 ) (44 ) Fair value of plan assets at end of year (estimated) $ 5,491 $ 5,643 $ — $ — Funded Status of Our Pension and Other Postretirement Benefit Plans DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2015 2014 2015 2014 Noncurrent assets $ 70 $ 8 $ — $ — Current liabilities (21 ) (21 ) (22 ) (26 ) Noncurrent liabilities (769 ) (1,042 ) (218 ) (277 ) Funded status $ (720 ) $ (1,055 ) $ (240 ) $ (303 ) Changes in actuarial assumptions decreased liabilities by $343 million as of the end of 2015 and had a positive effect on the funded status of the pension and postretirement plans. The primary drivers were the adoption of updated mortality tables for the U.S. pension and postretirement plans and changes in discount rates. The Company elected to implement the longevity assumption published by the Society of Actuaries in October 2015, effective December 31, 2015. Discount rates increased from 4.10 percent at the end of 2014 to 4.50 percent at the end of 2015 for the U.S. pension plans, and increased from 3.60 percent at the end of 2014 to 4.00 percent at the end of 2015 for U.S. postretirement. The discount rates increased from 3.90 percent at the end of 2014 to 4.00 percent at the end of 2015 for the Canadian pension plans, and increased from 3.80 percent at the end of 2014 to 3.90 percent at the end of 2015 for Canadian postretirement. Our qualified and registered pension plans and a portion of our nonregistered pension plans are funded. We contribute to these plans according to established funding standards. The nonqualified pension plan, a portion of the nonregistered pension plans, and the other postretirement benefit plans are unfunded. For the unfunded plans, we pay benefits to retirees from our general assets as they come due. The values reported for our pension plan assets at the end of 2015 and 2014 were estimated. Additional information regarding the year-end values generally becomes available to us during the first half of the following year. We increased the fair value of plan assets by $57 million to reflect final valuations as of December 31, 2014. During 2015 , we contributed $33 million for our Canadian registered plans, we made contributions and benefit payments of $3 million for our Canadian nonregistered pension plans and made benefit payments of $24 million for our nonqualified pension plans. The asset or liability on our Consolidated Balance Sheet representing the funded status of the plans is different from the cumulative income or expense that we have recorded related to these plans. These differences are actuarial gains and losses and prior service costs and credits that are deferred and will be amortized into our periodic benefit costs in future periods. These unamortized amounts are recorded in "Cumulative Other Comprehensive Loss", which is a component of total equity on our Consolidated Balance Sheet . The Cumulative Other Comprehensive Income (Loss) section of Note 16: Shareholder's Interest details changes in the amounts included in cumulative other comprehensive income (loss) by component. Accumulated Benefit Obligations Greater Than Plan Assets As of December 31, 2015 , pension plans with accumulated benefit obligations greater than plan assets had: • $5.5 billion in projected benefit obligations, • $5.4 billion in accumulated benefit obligations and • assets with a fair value of $4.7 billion . As of December 31, 2014 , pension plans with accumulated benefit obligations greater than plan assets had: • $6.6 billion in projected benefit obligations, • $6.5 billion in accumulated benefit obligations and • assets with a fair value of $5.6 billion . The accumulated benefit obligation for all of our defined benefit pension plans was: • $6.1 billion at December 31, 2015 ; and • $6.5 billion at December 31, 2014 . PENSION ASSETS Our Investment Policies and Strategies Our investment policies and strategies guide and direct how we manage funds for the benefit plans we sponsor. These funds include our: • U.S. Pension Trust — funds our U.S. qualified pension plans; • Canadian Pension Trust — funds our Canadian registered pension plans; and • Retirement Compensation Arrangements — fund a portion of our Canadian nonregistered pension plans. U.S. and Canadian Pension Trusts Our U.S. pension trust holds the funds for our U.S. qualified pension plans, while our Canadian pension trust holds the funds for our Canadian registered pension plans. Our strategy within the trusts is to invest: • directly in a diversified mix of nontraditional investments; and • indirectly through derivatives to promote effective use of capital, increase returns and manage associated risk. Consistent with past practice and in accordance with investment guidelines established by the company’s investment committee, the investment managers of the company’s pension plan asset portfolios utilize a diversified set of investment strategies. Our direct investments include: • cash and short-term investments, • hedge funds, • private equity, • real estate fund investments and • common and preferred stocks. Our indirect investments include: • equity index derivatives, • fixed income derivatives and • swaps and other derivative instruments. The overall return for our pension trusts includes: • returns earned on our direct investments and • returns earned on the derivatives we use. Cash and short-term investments generally consist of highly liquid money market and government securities and are primarily held to fund benefit payments, capital calls and margin requirements. Hedge fund investments generally consist of privately-offered managed pools primarily structured as limited liability entities, with the general members or partners of such limited liability entities serving as portfolio manager and thus being responsible for the fund’s underlying investment decisions. Generally, these funds have varying degrees of liquidity and redemption provisions. Underlying investments within these funds may include long and short public and private equities, corporate, mortgage and sovereign debt, options, swaps, forwards and other derivative positions. These funds may also use varying degrees of leverage. Private equity investments consist of investments in private equity, mezzanine, distressed, co-investments and other structures. Private equity funds generally participate in buyouts and venture capital of limited liability entities through unlisted equity and debt instruments. These funds may also employ borrowing at the underlying entity level. Mezzanine and distressed funds generally follow strategies of investing in the debt of public or private companies with additional participation through warrants or other equity type options. Real estate fund investments in real property may be initiated through private transactions between principals or public market vehicles such as real estate investment trusts and are generally held in limited liability entities. Common and preferred stocks are equity instruments that generally have resulted from transactions related to private equity investment holdings. Swaps and other derivative instruments generally are comprised of swaps, futures, forwards or options. In accordance with our investment risk and return objectives, some of these instruments are utilized to achieve target equity and bond asset exposure or to reduce exposure to certain market risks or to help manage the liquidity of our investments. The resulting asset mix achieved is intended to allow the assets to perform comparably with established benchmarks. Others, mainly total return swaps with limited exchange of principal, are designed to gain exposure to the return characteristics of specific financial strategies. All swap, forward and option contracts are executed in a diversified manner through a number of financial institutions and in accordance with our investment guidelines. Retirement Compensation Arrangements Retirement Compensation Arrangements fund a portion of our Canadian nonregistered pension plans. Under Retirement Compensation Arrangements, our contributions are split: • 50 percent to our investments in a portfolio of equities; and • 50 percent to a noninterest-bearing refundable tax account held by the Canada Revenue Agency — as required by Canadian tax rules. The Canadian tax rules requirement means that — on average, over time — approximately 50 percent of our Canadian nonregistered pension plans’ assets do not earn returns. Managing Risk Investments and contracts, in general, are subject to risk, including market price, liquidity, currency, interest rate and credit risks. We have established governance practices to manage certain risks. The following provides an overview of these risks and describes actions we take to mitigate the potential adverse effects of these risks on the performance of our pension plan assets. Generally, we manage these risks through: • selection and diversification of managers and strategies, • use of limited-liability vehicles, • diversification and • constraining risk profiles to predefined limits on the percentage of pension trust assets that can be invested in certain categories. Market price risk is the risk that the future value of a financial instrument will fluctuate as a result of changes in its market price, whether caused by factors specific to the individual investment, its issuer, or any other market factor that may affect its price. We attempt to mitigate market price risk on the company’s pension plan asset portfolios by investing in a diversified set of assets whose returns exhibit low correlation to those of traditional asset classes and each other. In addition, we and our investment advisers monitor the investments on a regular basis to ensure the decision to invest in particular assets continues to be suitable, including performing ongoing qualitative and quantitative assessments and comprehensive investment and operational due diligence. Special attention is paid to organizational changes made by the underlying fund managers and to changes in policy relative to their investment objectives, valuation, hedging strategy, degree of diversification, leverage, alignment of fund principles and investors, risk governance and costs. Liquidity risk is the risk that the pension trusts will encounter difficulty in meeting obligations associated with their financial liabilities. Our financial obligations as they relate to the pension plans generally consist of distributions and redemptions payable to pension plan participants, payments to counterparties and fees to service providers. As established, pension plan assets primarily consist of investments in limited liability pools for which there is no active secondary market. As a result, the investments may be illiquid. Further, hedge funds are subject to potential restrictions that may affect the timing of the realization of pending redemptions. Private equity funds, including those private equity funds that invest in real estate assets, are subject to distribution and funding schedules that are set by the private equity funds’ respective managers and market activity, and the period over which the funds are expected to liquidate is uncertain and dependent upon realization of the respective funds' underlying investments which will vary over time. To mitigate liquidity risk on the company’s pension plan asset portfolios, private equity portfolios has been diversified across different vintage years and strategies and hedge fund portfolios have been diversified across investment fund managers, strategies and funds that possess varying liquidity provisions. By doing so, the company seeks to maintain a liquidity profile wherin the potential liquidity offered by the pension plan assets is diversified over time. For instance, under normal operating conditions, the frequency by which investments in hedge funds may be redeemed ranges from daily to every three years with notice periods as few as five days to as much as a year. This liquidity profile, however, can be impacted by existing terms that permit redemption restrictions and decisions by underlying fund managers to create illiquid side pockets, adopt a fund liquidation strategy or suspend redemptions altogether. In addition, the investment committee regularly reviews cash flows of the pension trusts and sets appropriate guidelines to address liquidity needs. Currency risk arises from holding pension plan assets denominated in a currency other than the currency in which its liabilities are settled. Such risk is managed generally through notional contracts designed to hedge the net exposure to non-functional currencies. Interest rate risk is the risk that a change in interest rates will adversely affect the fair value of fixed income securities. The pension trust’s primary exposure to interest rate risk is indirect and through their investments in limited liability pools. Such indirect exposure is managed by the respective fund managers in conjunction with their investment level decisions and predefined investment mandates. Credit risk relates to the extent to which failures by counterparties to discharge their obligations could reduce the amount of future cash flows on hand at the balance sheet date. The pension trusts’ exposure to counterparty credit risk is reflected in settlement receivables from derivative contracts within the pension plan assets. In evaluating credit risk, we will often be dependent upon information provided by the counterparty or a rating agency, which may be inaccurate. We decrease exposure to credit risk by only dealing with highly-rated financial counterparties, and as of year-end, our counterparties each had a credit rating of at least A from Standard and Poor’s. We further manage this risk through: • diversification of counterparties, • predefined settlement and margining provisions and • documented agreements. We expect that none of our counterparties will fail to meet its obligations. Also, no principal is at risk as a result of these types of investments. Only the amount of unsettled net receivables is at risk. We are also exposed to credit risk indirectly through counterparty relationships struck by the underlying managers of investments in limited liability pools. This indirect exposure is mitigated through a due diligence process, which focuses on monitoring each investment fund to ensure the decision to invest in or maintain exposure to a fund continues to be suitable for the pension plans’ asset portfolios. While we do not target specific direct investment or derivative allocations, we have established guidelines on the percentage of pension trust assets that can be invested in certain categories to provide diversification by investment type fund and investment managers, as well as to manage overall liquidity. Assets within our qualified and registered pension plans in our U.S. and Canadian pension trusts were invested as follows: December 31, 2015 December 31, 2014 Fixed income 13.1 % 12.2 % Hedge funds 62.7 60.6 Private equity and related funds 23.0 25.3 Real estate and related funds 1.2 1.4 Common and preferred stock and equity index instruments 0.1 0.7 Accrued liabilities (0.1 ) (0.2 ) Total 100.0 % 100.0 % Assets within our nonregistered plans that we are allowed to manage were invested as follows: December 31, 2015 December 31, 2014 Cash and cash equivalents 55.9 % 52.8 % Equities 44.1 47.2 Total 100.0 % 100.0 % Valuation of Our Plan Assets The pension assets are stated at fair value based upon the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. We do not value pension investments based upon a forced or distressed sale scenario. Instead, we consider both observable and unobservable inputs that reflect assumptions applied by market participants when setting the exit price of an asset or liability in an orderly transaction within the principal market of that asset or liability. We value the pension plan assets based upon the observability of exit pricing inputs and classify pension plan assets based upon the lowest level input that is significant to the fair value measurement of the pension plan assets in their entirety. The fair value hierarchy we follow is outlined below; Level 1: Inputs are unadjusted quoted prices for identical assets and liabilities traded in an active market. Level 2: Inputs are quoted prices in non-active markets for which pricing inputs are observable either directly or indirectly at the reporting date. Level 3: Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The pension assets are comprised of cash and short-term investments, derivative contracts, common and preferred stock and fund units. The fund units are typically limited liability interests in hedge funds, private equity funds, real estate funds and cash funds. Each of these assets participates in its own unique principal market. Cash and short-term investments, when held directly, are valued at cost. Common and preferred stocks are valued at exit prices quoted in the public markets. Derivative contracts held by our pension trusts are not publicly traded and each derivative contract is specifically negotiated with a unique financial counterparty and references either illiquid fund units or a unique number of synthetic units of a publicly reported market index. The derivative contracts are valued based upon valuation statements received from the financial counterparties. Fund units are valued based upon the net asset values of the funds which we believe represent the per-unit prices at which new investors are permitted to invest and the prices at which existing investors are permitted to exit. To the degree net asset values as of the end of the year have not been received, we use the most recently reported net asset values and adjust for market events and cash flows that have occurred between the interim date and the end of the year to estimate the fair values as of the end of the year. Assets that do not have readily available quoted prices in an active market require a higher degree of judgment to value and have a higher degree of risk that the value that could have been realized upon sale as of the valuation date could be different from the reported value than assets with observable pricing inputs. It is possible that the full extent of market price, liquidity, currency, interest rate, or credit risks may not be fully factored into the fair values of our pension plan assets that use significant unobservable inputs. Approximately $4.7 billion , or 86.0 percent , of our pension plan assets were classified as Level 3 assets as of December 31, 2015 . 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. When the difference is significant, we revise the year-end estimated fair value of pension plan assets to incorporate year-end net asset values received after we have filed our annual report on Form 10-K. We increased the fair value of pension assets in the second quarter of 2015 by $57 million , or 1.0 percent . The net pension plan assets, when categorized in accordance with this fair value hierarchy, are as follows: DOLLAR AMOUNTS IN MILLIONS 2015 Level 1 Level 2 Level 3 Total Pension trust investments: Fixed income instruments $ 668 $ 46 $ — 714 Hedge funds 87 (37 ) 3,388 3,438 Private equity and related funds — — 1,267 1,267 Real estate and related funds — — 67 67 Common and preferred stock and equity index instruments — 3 — 3 Total pension trust investments $ 755 $ 12 $ 4,722 $ 5,489 Accrued liabilities, net (8 ) Pension trust net assets 5,481 Canadian nonregistered plan assets: Cash $ 6 $ — $ — 6 Investments 4 — — 4 Total Canadian nonregistered plan assets $ 10 $ — $ — $ 10 Total plan assets $ 5,491 DOLLAR AMOUNTS IN MILLIONS 2014 Level 1 Level 2 Level 3 Total Pension trust investments: Fixed income instruments $ 646 $ 36 $ 3 685 Hedge funds 103 (22 ) 3,333 3,414 Private equity and related funds — 3 1,422 1,425 Real estate and related funds — — 82 82 Common and preferred stock and equity index instruments 25 12 — 37 Total pension trust investments $ 774 $ 29 $ 4,840 $ 5,643 Accrued liabilities, net (13 ) Pension trust net investments 5,630 Canadian nonregistered plan assets: Cash $ 7 $ — $ — 7 Investments 6 — — 6 Total Canadian nonregistered plan assets $ 13 $ — $ — $ 13 Total plan assets $ 5,643 A reconciliation of the beginning and ending balances of the pension plan assets measured at fair value using significant unobservable inputs (Level 3) is presented below: DOLLAR AMOUNTS IN MILLIONS INVESTMENTS Hedge funds Private equity and related funds Real estate and related funds Fixed Income Total Balance as of December 31, 2013 $ 3,225 $ 1,606 $ 101 $ 3 $ 4,935 Net realized gains (losses) 186 128 8 — 322 Net change in unrealized appreciation (depreciation) 76 (130 ) (4 ) — (58 ) Purchases 541 177 5 — 723 Sales (540 ) (359 ) (28 ) — (927 ) Issuances 52 — — — 52 Settlements (132 ) — — — (132 ) Transfers, Out (1) (75 ) — — — (75 ) Balance as of December 31, 2014 $ 3,333 $ 1,422 $ 82 $ 3 $ 4,840 Net realized gains (losses) 143 100 9 1 253 Net change in unrealized appreciation (depreciation) 47 (117 ) (11 ) — (81 ) Purchases 441 141 6 — 588 Sales (539 ) (279 ) (19 ) (4 ) (841 ) Issuances 47 — — — 47 Settlements (84 ) — — — (84 ) Transfers, Out (1) — — — — — Balance as of December 31, 2015 $ 3,388 $ 1,267 $ 67 $ — $ 4,722 (1) One hedge fund completed an initial public offering during 2014; as such the security was transferred from Level 3 to Level 1 in 2014. This table shows the fair value of the derivatives held by our pension trusts — which fund our qualified and registered plans — at the end of the last two years. DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Equity index instruments $ 13 $ 13 Forward contracts (51 ) (32 ) Swaps 492 436 Total $ 454 $ 417 This table shows the aggregate notional amount of the derivatives held by our pension trusts — which fund our qualified and registered plans — at the end of the last two years. DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Equity index instruments $ 500 $ 361 Forward contracts 523 535 Swaps 2,058 1,824 Total $ 3,081 $ 2,720 ACTIVITY OF PLANS WE SPONSOR Net Periodic Benefit Cost (Credit) DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2015 2014 2013 2015 2014 2013 Net periodic benefit cost (credit): Service cost (1) $ 57 $ 53 $ 64 $ — $ 1 $ 1 Interest cost 265 271 244 9 10 12 Expected return on plan assets (476 ) (467 ) (439 ) — — — Amortization of actuarial loss 182 125 221 10 12 14 Amortization of prior service cost (credit) (2) 4 5 7 (9 ) (161 ) (23 ) Recognition of curtailments, settlements and special termination benefits due to closures, restructuring or divestitures (1) — 9 — — — — Other — — — — (4 ) — Net periodic benefit cost (credit) $ 32 $ (4 ) $ 97 $ 10 $ (142 ) $ 4 (1) Service cost includes $2 million in 2014 and $4 million in 2013 for employees that were part of the Real Estate Divestiture. These charges are included in our results of discontinued operations. Curtailment and special termination benefits are related to involuntary terminations, due to restructuring activities, as well as the Real Estate Divestiture. (2) During fourth quarter 2013, the decision was ratified to eliminate Company funding of the Post-Medicare Health Reimbursement Account (HRA) for certain salaried retirees after 2014. This change was communicated to affected retirees during January 2014. As a result, we recognized a pretax gain of $151 million in 2014 from this plan amendment. Estimated Amortization from Cumulative Other Comprehensive Loss in 2016 Amortization of the net actuarial loss and prior service cost (credit) of our pension and postretirement benefit plans will affect our other comprehensive income in 2016 . The net effect of the estimated amortization will be an increase in net periodic benefit costs or a decrease in net periodic benefit credits in 2016 . DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS TOTAL Net actuarial loss $ 152 $ 9 $ 161 Prior service cost (credit) 4 (8 ) (4 ) Net effect cost $ 156 $ 1 $ 157 Expected Pension Funding Established funding standards govern the funding requirements for our qualified and registered pension plans. We fund the benefit payments of our nonqualified and nonregistered plans as benefit payments come due. During 2016 , based on estimated year-end asset values and projections of pla |
VARIABLE INTEREST ENTITIES
VARIABLE INTEREST ENTITIES | 12 Months Ended |
Dec. 31, 2015 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES This note provides details about special-purpose entities (SPEs). SPECIAL-PURPOSE ENTITIES From 2002 through 2004, we sold certain nonstrategic timberlands in five separate transactions. We are the primary beneficiary and consolidate the assets and liabilities of certain monetization and buyer-sponsored SPEs involved in these transactions. We have an equity interest in the monetization SPEs, but no ownership interest in the buyer-sponsored SPEs. The following disclosures refer to assets of buyer-sponsored SPEs and liabilities of monetization SPEs. However, because these SPEs are distinct legal entities: • Assets of the SPEs are not available to satisfy our liabilities or obligations. • Liabilities of the SPEs are not our liabilities or obligations. In 2013, we repaid a $162 million note and received $184 million related to one of our timber monetization SPEs undertaken in 2003. Net proceeds were $22 million . Our Consolidated Statement of Operations includes: • Interest expense on SPE notes of: – $29 million in 2015 , – $29 million in 2014 and – $29 million in 2013 . • Interest income on SPE investments of: – $34 million in 2015 , – $34 million in 2014 and – $34 million in 2013 . Sales proceeds paid to buyer-sponsored SPEs were invested in restricted financial investments with a balance of $615 million as of both December 31, 2015 , and December 31, 2014 . The weighted average interest rate was 5.5 percent during 2015 and 2014 . Maturities of the financial investments at the end of 2015 were: • $253 million in 2019 and • $362 million in 2020 . The long-term notes of our monetization SPEs were $511 million as of both December 31, 2015 , and December 31, 2014 . The weighted average interest rate was 5.6 percent during 2015 and 2014 . Maturities of the notes at the end of 2015 were: • $209 million in 2019 and • $302 million in 2020 . Financial investments consist of bank guarantees backed by bank notes for three of the SPE transactions. Interest earned from each financial investment is used to pay interest accrued on the corresponding SPE’s note. Any shortfall between interest earned and interest accrued reduces our equity in the monetization SPEs. Upon dissolution of the SPEs and payment of all obligations of the entities, we would receive any net equity remaining in the monetization SPEs and would be required to report deferred tax gains on our income tax return. In the event that proceeds from the financial investments are insufficient to settle all of the liabilities of the SPEs, we are not obligated to contribute any funds to any of the SPEs. As of December 31, 2015 , our net equity in the three SPEs was approximately $105 million and the deferred tax liability was estimated to be approximately $180 million . |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2015 | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities were comprised of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Wages, salaries and severance pay $ 150 $ 161 Pension and postretirement 44 47 Vacation pay 46 47 Taxes – Social Security and real and personal property 24 24 Interest 104 105 Customer rebates and volume discounts 46 46 Deferred income 52 75 Other 83 82 Total $ 549 $ 587 |
LINES OF CREDIT
LINES OF CREDIT | 12 Months Ended |
Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |
LINES OF CREDIT | LINES OF CREDIT This note provides details about our: • lines of credit and • other letters of credit and surety bonds. OUR LINES OF CREDIT During September 2013, we entered into a new $1 billion 5-year senior unsecured revolving credit facility that expires in September 2018 . This replaces a $1 billion revolving credit facility that was set to expire June 2015 . As of June 16, 2014, WRECO terminated its participation as a borrower in the facility. There were no changes to our lines of credit during 2015. Borrowings are at LIBOR plus a spread or at other interest rates mutually agreed upon between the borrower and the lending banks. As of December 31, 2015 , there were no borrowings outstanding under the facility and we were in compliance with the credit facility covenants. OTHER LETTERS OF CREDIT AND SURETY BONDS The amounts of other letters of credit and surety bonds we have entered into as of the end of our last two years are included in the following table: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Letters of credit $ 47 $ 44 Surety bonds $ 113 $ 231 Our compensating balance requirements for our letters of credit were $17 million as of December 31, 2015 . |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2015 | |
Long-term Debt, by Current and Noncurrent [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT This note provides details about: • long-term debt and the portion due within one year and • long-term debt maturities. Our long-term debt includes notes, debentures, revenue bonds and other borrowings. The following table lists our long-term debt, which includes Weyerhaeuser Company debt, by types and interest rates at the end of our last two years and includes the current portion. Long-Term Debt by Types and Interest Rates (Includes Current Portion) DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, 6.95% debentures due 2017 $ 281 $ 281 7.00% debentures due 2018 62 62 7.375% notes due 2019 500 500 Variable rate term loan credit facility matures 2020 550 550 9.00% debentures due 2021 150 150 7.125% debentures due 2023 191 191 4.625% notes due 2023 500 500 8.50% debentures due 2025 300 300 7.95% debentures due 2025 136 136 7.70% debentures due 2026 150 150 7.35% debentures due 2026 62 62 7.85% debentures due 2026 100 100 6.95% debentures due 2027 300 300 7.375% debentures due 2032 1,250 1,250 6.875% debentures due 2033 275 275 Industrial revenue bonds, rates from 6.7% to 6.8%, due 2022 88 88 Other 1 1 4,896 4,896 Less unamortized discounts (5 ) (5 ) Total $ 4,891 $ 4,891 Portion due within one year $ — $ — In order to repay the debt that we assumed in the acquisition of Longview Timber, in 2013 we issued $500 million of 4.625 percent notes due September 15, 2023 . The net proceeds after deducting the discount, underwriting fees and issuance costs were $495 million . We also entered into a $550 million 7-year senior unsecured term loan credit facility maturing in September 2020 and borrowed $550 million . Borrowings are at LIBOR plus a spread or at other interest rates mutually agreed upon between the borrower and the lending banks. On October 15, 2013, we repaid the $1,118 million carrying value of the debt that we assumed in the acquisition of Longview Timber and related fees, expenses and premiums using the proceeds from the notes issued and the borrowings from our term loan credit facility borrowed in 2013. A pretax charge of $25 million was included in our net interest expense in 2013, for early retirement premiums, unamortized debt issuance costs and other miscellaneous charges in connection with the early extinguishment of debt. See Note 4: Acquisitions for more information. Amounts of Long-Term Debt Due Annually for the Next Five Years and the Total Amount Due After 2020 DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2015 Long-term debt maturities: 2016 $ — 2017 $ 281 2018 $ 62 2019 $ 500 2020 $ 550 Thereafter $ 3,503 |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS This note provides information about the fair value of our: • debt and • other financial instruments. FAIR VALUE OF DEBT The estimated fair values and carrying values of our long-term debt consisted of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2015 DECEMBER 31, 2014 CARRYING VALUE FAIR VALUE (LEVEL 2) CARRYING VALUE FAIR VALUE (LEVEL 2) Long-term debt (including current maturities) $ 4,891 $ 5,620 $ 4,891 $ 5,922 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 | 12 Months Ended |
Dec. 31, 2015 | |
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES | LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES This note provides details about our: • legal proceedings, • environmental matters and • commitments and other contingencies. LEGAL PROCEEDINGS We are party to various legal proceedings arising in the ordinary course of business. We are not currently a party to any legal proceeding that management believes could have a material adverse effect on our long-term consolidated 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. We have received notification and have acknowledged that we are a potentially responsible party in a portion of the Kalamazoo River Superfund site in southwest Michigan. Our involvement in the remediation site is based on our former ownership of the Plainwell, Michigan mill located within the remediation site. In 2015 we received invitations from the Environmental Protection Agency (the “EPA”) to negotiate an administrative order on consent for a contaminant removal action for a portion of the site. Two other parties received the same invitations. All parties are in contact with the EPA as to the work required and the terms of any consent order. According to the EPA, this Superfund site encompasses 77 miles of the Kalamazoo River from a location east of the city of Kalamazoo to the river mouth at Lake Michigan. The EPA’s 2015 invitations concern a stretch of the river approximately 1.7 miles long that the EPA refers to as the Otsego Township Dam Area. Several other companies also operated upstream pulp mills. At this time we are unable to estimate the timing and extent of future cash flows related to our involvement in this site remediation. Our established reserves. We have established reserves for estimated remediation costs on the active Superfund sites and other sites for which we are responsible. These reserves are recorded in "Accrued liabilities" and "Other liabilities" in our Consolidated Balance Sheet . Changes in the Reserve for Environmental Remediation DOLLAR AMOUNTS IN MILLIONS Reserve balance as of December 31, 2014 $ 29 Reserve charges and adjustments, net 15 Payments (7 ) Reserve balance as of December 31, 2015 $ 37 Total active sites as of December 31, 2015 38 We change our accrual to reflect: • new information on any site concerning implementation of remediation alternatives, • updates on prior cost estimates and new sites and • costs incurred to remediate sites. Estimates. We believe it is reasonably possible, based on currently available information and analysis, that remediation costs for all identified sites may exceed our existing reserves by up to $116 million . This estimate, in which those additional costs may be incurred over several years, is the upper end of the range of reasonably possible additional costs. The estimate: • is much less certain than the estimates on which our accruals currently are based, and • uses assumptions that are less favorable to us among the range of reasonably possible outcomes. In estimating our current accruals and the possible range of additional future costs, we: • assumed we will not bear the entire cost of remediation of every site, • took into account the ability of other potentially responsible parties to participate, and • considered each party ’ s financial condition and probable contribution on a per-site basis. We have not recorded any amounts for potential recoveries from insurance carriers. 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. 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. These obligations are recorded in "Accrued liabilities" and "Other liabilities" in our Consolidated Balance Sheet . Changes in the Reserve for Asset Retirement Obligations DOLLAR AMOUNTS IN MILLIONS Reserve balance as of December 31, 2014 $ 40 Reserve charges and adjustments, net 10 Payments (11 ) Other adjustments (1) (5 ) Reserve balance as of December 31, 2015 34 (1) Primarily related to a foreign currency remeasurement gain for our Canadian reforestation obligation. COMMITMENTS AND OTHER CONTINGENCIES Our commitments and contingencies include: • guarantees of debt and performance, • purchase obligations for goods and services and • operating leases. Guarantees We have guaranteed the performance of the buyer/lessee of a timberlands lease we sold in 2005. Future payments on the lease — which expires in 2023 — are $15 million . Purchase Obligations Our purchase obligations as of December 31, 2015 were: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2015 2016 $ 84 2017 $ 33 2018 $ 8 2019 $ 2 2020 $ 2 Thereafter $ 17 Purchase obligations for goods or services are agreements that: • are enforceable and legally binding, • specify all significant terms and • cannot be canceled without penalty. The terms include: • fixed or minimum quantities to be purchased, • fixed, minimum or variable price provisions, and • an approximate timing for the transaction. Our purchase obligations include items such as: • stumpage and log purchases, • energy and • other service and supply contracts. Operating Leases Our rent expense was: DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Rent expense $ 31 $ 32 $ 38 We have operating leases for: • various equipment, including logging equipment, lift trucks, automobiles and office equipment; and • office and wholesale space. Commitments Our operating lease commitments as of December 31, 2015 were: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2015 2016 $ 27 2017 $ 26 2018 $ 21 2019 $ 17 2020 $ 14 Thereafter $ 105 |
SHAREHOLDERS' INTEREST
SHAREHOLDERS' INTEREST | 12 Months Ended |
Dec. 31, 2015 | |
SHAREHOLDERS' INTEREST | SHAREHOLDERS’ INTEREST This note provides details about: • preferred and preference shares, • common shares, • share-repurchase programs and • cumulative other comprehensive income (loss). PREFERRED AND PREFERENCE SHARES We had no preferred shares outstanding at the end of 2015 or 2014 . However, we have authorization to issue 7 million preferred shares with a par value of $1 per share. As part of our purchase of Longview Timber, we issued 13.8 million of our 6.375 percent Mandatory Convertible Preference Shares, Series A, par value $1.00 and liquidation preference of $50.00 per share on June 24, 2013 , for net proceeds of $669 million , which remained outstanding at year-end 2015 . Dividends will be payable on a cumulative basis when, as and if declared by our board of directors, at an annual rate of 6.375 percent on the liquidation preference. We may pay declared dividends in cash or, subject to certain limitations, in common shares or by delivery of any combination of cash and common shares on January 1, April 1, July 1 and October 1 of each year, commencing on October 1, 2013, through, and including, July 1, 2016. These shares will automatically convert on July 1, 2016 into between 1.5283 and 1.8339 of our common shares, subject to anti-dilution adjustments. At any time prior to that date, holders may elect to convert each share into common shares at the minimum conversion rate of 1.5283 common shares, subject to anti-dilution adjustments. In April 2015, 289 preference shares were converted into 436 common shares. See Note 4: Acquisitions for more information. We may issue preferred or preference shares at one time or through a series of offerings. The shares may have varying rights and preferences that can include: • dividend rates, • redemption rights, • conversion terms, • sinking-fund provisions, • values in liquidation and • voting rights. When issued, outstanding preferred and preference shares rank senior to outstanding common shares. That means preferred and preference shares would receive dividends and assets available on liquidation before any payments are made to common shares. COMMON SHARES The number of common shares we have outstanding changes when: • new shares are issued, • stock options are exercised, • restricted stock units or performance share units vest, • stock-equivalent units are paid out, • shares are tendered, • shares are repurchased or • shares are canceled. Reconciliation of Our Common Share Activity IN THOUSANDS 2015 2014 2013 Outstanding at beginning of year 524,474 583,548 542,393 New issuance (Note 4) — — 33,350 Shares tendered (Note 3) — (58,813 ) — Stock options exercised 1,592 5,134 7,209 Issued for restricted stock units 365 451 462 Issued for performance shares 242 217 134 Repurchased (16,190 ) (6,063 ) — Outstanding at end of year 510,483 524,474 583,548 OUR SHARE REPURCHASE PROGRAMS On August 13, 2014, our board of directors approved a stock repurchase program under which we were authorized to repurchase up to $700 million of outstanding shares (the 2014 Repurchase Program). The 2014 Repurchase Program replaced the prior 2011 stock repurchase program. During 2014, we repurchased 6,062,993 shares of common stock for $203 million under the 2014 Repurchase Program. During 2015 we completed the 2014 Repurchase Program by repurchasing 15,471,962 shares of common stock for $497 million . All common stock purchases under the stock repurchase program were made in open-market transactions. On August 27, 2015 our board of directors approved a new share repurchase program of up to $500 million on outstanding shares (the 2015 Repurchase Program), commencing upon completion of the 2014 Repurchase Program. During 2015, we repurchased 717,464 shares of common stock for $22 million under the 2015 Repurchase Program. As of December 31, 2015 we had remaining authorization of $478 million for future stock repurchases. All common stock purchases under the stock repurchase program were made in open-market transactions. We had 510,483,285 shares of common stock outstanding as of December 31, 2015. On November 8, 2015 Weyerhaeuser announced it intends to execute a $2.5 billion share repurchase shortly after closing the merger with Plum Creek. As of December 31, 2015 no portion of this intended repurchase has been completed. The remaining $478 million authorized for the 2015 Repurchase Program is expected to be used in the intended post-merger repurchase. CUMULATIVE OTHER COMPREHENSIVE INCOME (LOSS) Changes in amounts included in our cumulative other comprehensive income (loss) by component are: DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 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 January 1, 2014 $ 354 $ (1,066 ) $ (19 ) $ (111 ) $ 150 $ 6 $ (686 ) Other comprehensive income (loss) before reclassifications (50 ) (1,008 ) 1 (6 ) (12 ) — (1,075 ) Income taxes — 369 — 1 7 — 377 Net other comprehensive income (loss) before reclassifications (50 ) (639 ) 1 (5 ) (5 ) — (698 ) Amounts reclassified from cumulative other comprehensive income (loss) (1) — 125 5 12 (161 ) — (19 ) Income taxes — (43 ) (2 ) (4 ) 59 — 10 Net amounts reclassified from cumulative other comprehensive income (loss) — 82 3 8 (102 ) — (9 ) Total other comprehensive income (loss) (50 ) (557 ) 4 3 (107 ) — (707 ) Beginning balance as of January 1, 2015 304 (1,623 ) (15 ) (108 ) 43 6 (1,393 ) Other comprehensive income (loss) before reclassifications (97 ) 184 2 37 (2 ) — 124 Income taxes — (52 ) — (12 ) — — (64 ) Net other comprehensive income (loss) before reclassifications (97 ) 132 2 25 (2 ) — 60 Amounts reclassified from cumulative other comprehensive income (loss) (1) — 182 4 10 (9 ) — 187 Income taxes — (63 ) (2 ) (4 ) 3 — (66 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 119 2 6 (6 ) — 121 Total other comprehensive income (loss) (97 ) 251 4 31 (8 ) — 181 Ending balance as of December 31, 2015 $ 207 $ (1,372 ) $ (11 ) $ (77 ) $ 35 $ 6 $ (1,212 ) (1) Actuarial losses and prior service credits (costs) are included in the computation of net periodic benefit costs (credits). See Note: 9 Pension and Other Postretirement Benefit Plans . |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2015 | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-based compensation expense was: • $31 million in 2015 , • $40 million in 2014 and • $42 million in 2013 . The amounts above contain awards to employees that were part of the Real Estate Divestiture and are included in our results of discontinued operations. These amounts are: • $3 million in 2014 and • $5 million in 2013 . This note provides details about: • our Long-Term Incentive Compensation Plan (2013 Plan), • how we account for share-based awards, • tax benefits of share-based awards, • types of share-based compensation and • unrecognized share-based compensation. OUR LONG-TERM INCENTIVE COMPENSATION PLAN Our long-term incentive plans provide for share-based awards that include: • stock options, • stock appreciation rights, • restricted stock, • restricted stock units, • performance shares and • performance share units. We may issue future grants of up to 17,317,903 shares under the 2013 Plan. We also have the right to reissue forfeited and expired grants. For stock options and stock appreciation rights: • An individual participant may receive a grant of up to 2 million shares in any one calendar year. • The exercise price is required to be the market price on the date of the grant. For restricted stock, restricted stock units, performance shares, performance share units or other equity grants: • An individual participant may receive a grant of up to 1 million shares annually. • No participant may be granted awards that exceed $10 million earned in a 12 month period. The Compensation Committee of our board of directors (the Committee) annually establishes an overall pool of stock awards available for grants based on performance. For stock-settled awards, we: • issue new stock into the marketplace and • generally do not repurchase shares in connection with issuing new awards. Our common shares would increase by approximately 32 million shares if all share-based awards were exercised or vested. These include: • all options, restricted stock units, and performance share units outstanding at December 31, 2015 under the 2013 Plan and 2004 Plan; and • all remaining options, restricted stock units, and performance share units that could be granted under the 2013 Plan. HOW WE ACCOUNT FOR SHARE-BASED AWARDS We: • use a fair-value-based measurement for share-based awards, and • recognize the cost of share-based awards in our consolidated financial statements. We recognize the cost of share-based awards in our Consolidated Statement of Operations over the required service period — generally the period from the date of the grant to the date when it is vested. Special situations include: • Awards that vest upon retirement — the required service period ends on the date an employee is eligible for retirement, including early retirement. • Awards that continue to vest following job elimination or the sale of a business — the required service period ends on the date the employment from the company is terminated. In these special situations, compensation expense from share-based awards is recognized over a period that is shorter than the stated vesting period. TAX BENEFITS OF SHARE-BASED AWARDS Our total income tax benefit from share-based awards — as recognized in our Consolidated Statement of Operations — for the last three years was: • $8 million in 2015 , • $11 million in 2014 , and • $10 million in 2013 . The amounts above contain income tax benefit from share-based awards to employees that were part of the Real Estate Divestiture and are included in our results of discontinued operations. These amounts are: • $1 million in 2014 and • $2 million in 2013 . Tax benefits for share-based awards are accrued as stock compensation expense is recognized in the Consolidated Statement of Operations . Tax benefits on share-based awards are realized when: • restricted shares and restricted share units vest, • performance shares and performance share units vest, • stock options are exercised and • stock appreciation rights are exercised. When actual tax benefits realized exceed the tax benefits accrued for share-based awards, we realize an excess tax benefit. We report the excess tax benefit as financing cash inflows rather than operating cash inflows. We had excess tax benefits of: • $4 million in 2015 , • $10 million in 2014 and • $13 million in 2013 . The amounts above contain excess tax benefits from share-based awards to employees that were part of the Real Estate Divestiture and are included in our results of discontinued operations. These amounts are: • $2 million in 2014 and • $2 million in 2013 . TYPES OF SHARE-BASED COMPENSATION Our share-based compensation is in the form of: • stock options, • restricted stock units, • performance share units, • stock appreciation rights and • deferred compensation stock equivalent units. STOCK OPTIONS Stock options entitle award recipients to purchase shares of our common stock at a fixed exercise price. We grant stock options with an exercise price equal to the market price of our stock on the date of the grant. The Details Our stock options generally: • vest over four years of continuous service and • must be exercised within 10 years of the grant-date. The vesting and post-termination vesting terms for stock options granted in 2015 , 2014 and 2013 were as follows: • vest ratably over four years; • vest or continue to 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 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. Our Accounting We use a Black-Scholes option valuation model to estimate the fair value of every stock option award on its grant-date. In our estimates, we use: • historical data — for option exercise time and employee terminations; • a Monte-Carlo simulation — for how long we expect granted options to be outstanding; and • the U.S. Treasury yield curve — for the risk-free rate. We use a yield curve over a period matching the expected term of the grant. The expected volatility in our valuation model is based on: • implied volatilities from traded options on our stock, • historical volatility of our stock and • other factors. Weighted Average Assumptions Used in Estimating Value of Stock Options Granted 2015 2014 2013 Expected volatility 25.92 % 31.71 % 38.00 % Expected dividends 3.28 % 2.92 % 2.23 % Expected term (in years) 4.77 4.97 4.97 Risk-free rate 1.54 % 1.57 % 0.92 % Weighted average grant-date fair value $ 5.85 $ 6.62 $ 8.40 Share-based compensation expense for stock options is generally recognized over the vesting period. There are exceptions for stock options awarded to employees who: • are eligible for retirement; • will become eligible for retirement during the vesting period; or • whose employment is terminated during the vesting period due to job elimination or the sale of a business. In these cases, we record the share-based compensation expense over a required service period that is less than the stated vesting period. Activity The following table shows our option unit activity for 2015 . OPTIONS (IN THOUSANDS) WEIGHTED AVERAGE EXERCISE PRICE WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) AGGREGATE INTRINSIC VALUE (IN MILLIONS) Outstanding at December 31, 2014 12,285 $ 24.19 Granted 2,123 $ 35.40 Exercised (1,376) $ 24.46 Forfeited or expired (269) $ 31.34 Outstanding at December 31, 2015 (1) 12,763 $ 25.88 5.20 $ 65 Exercisable at December 31, 2015 8,442 $ 22.78 3.62 $ 62 (1) As of December 31, 2015, there were approximately 1,034 thousand stock options that had met the requisite service period and will be released as identified in the grant terms. The total intrinsic value of stock options exercised was: • $13 million in 2015 , • $55 million in 2014 and • $61 million in 2013 . The total grant-date fair value of stock options vested was: • $14 million in 2015 , • $16 million in 2014 and • $14 million in 2013 . RESTRICTED STOCK UNITS Through the Plan, we award restricted stock units — grants that entitle the holder to shares of our stock as the award vests. The Details Our restricted stock units granted in 2015 , 2014 and 2013 generally: • 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 has not been met; and • will be forfeited upon termination of employment in all other situations including early retirement prior to age 62. Our Accounting The fair value of our restricted stock units is the market price of our stock on the grant-date of the awards. We generally record share-based compensation expense for restricted stock units over the four-year vesting period. Generally for restricted stock units that continue to vest following the termination of employment, we record the share-based compensation expense over a required service period that is less than the stated vesting period. Activity The following table shows our restricted stock unit activity for 2015 . STOCK UNITS (IN THOUSANDS) WEIGHTED AVERAGE GRANT-DATE FAIR VALUE Nonvested at December 31, 2014 1,227 $ 28.06 Granted 433 $ 35.41 Vested (489) $ 26.70 Forfeited (67) $ 31.11 Nonvested at December 31, 2015 (1) 1,104 $ 31.37 (1) As of December 31, 2015, there were approximately 232 thousand restricted stock units that had met the requisite service period and will be released as identified in the grant terms. The weighted average grant-date fair value for restricted stock units was: • $30.14 in 2014 and • $30.54 in 2013 . The total grant-date fair value of restricted stock units vested was: • $14 million in 2015 , • $16 million in 2014 and • $14 million in 2013 . Nonvested restricted stock units accrue dividends that are paid out when restricted stock units vest. Any restricted stock units forfeited will not receive dividends. As restricted stock units vest, a portion of the shares awarded is withheld to cover employee taxes. As a result, the number of stock units vested and the number of common shares issued will differ. PERFORMANCE SHARE UNITS Through the Plan, we award performance share units — grants that entitle the holder to shares of our stock as the award vests. The Details The final number of shares awarded will range from 0 percent to 150 percent of each grant’s target, depending upon actual company performance. For shares granted in 2015 the ultimate number of performance share units earned is based on two measures: • our relative total shareholder return (TSR) ranking measured against the S&P 500 over a three year period and • our relative TSR ranking measured against an industry peer group of companies over a three year period. The vesting provisions for performance share units granted in 2015 were as follows: • vest 100 percent on the third anniversary of the grant date 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 the employee has met the second anniversary of the grant date; and • will be forfeited upon termination of employment in all other situations including early retirement prior to age 62. For shares granted in 2014 and 2013 the ultimate number of performance share units earned is based on two measures: • Weyerhaeuser’s cash flow during the first year determined the initial number of units earned and • Weyerhaeuser’s relative total shareholder return (TSR) ranking in the S&P 500 during the first two years is used to adjust the initial number of units earned up or down by 20 percent . At the end of the two-year performance period and over a further two-year vesting period, performance share units would be paid in shares of our stock. Performance share units granted and that are earned vest 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 has not been met; and • will be forfeited upon termination of employment in all other situations including early retirement prior to age 62. Our Accounting Since the award contains a market condition, the effect of the market condition is reflected in the grant-date fair value which is estimated using a Monte Carlo simulation model. This model estimates the TSR ranking of the company over the performance period. Compensation expense is based on the estimated probable number of earned awards and recognized over the vesting period on an accelerated basis. Generally, compensation expense would be reversed if the performance condition is not met unless the requisite service period has been achieved. Weighted Average Assumptions Used in Estimating the Value of Performance Share Units 2015 2014 2013 Performance period 1/1/2015 – 12/31/2017 1/1/2014 – 12/31/2015 1/1/2013 – 12/31/2014 Valuation date closing stock price $ 35.41 $ 30.16 $ 30.48 Expected dividends 3.26 % 2.91 % 2.23 % Risk-free rate 0.05% - 1.07% 0.03% - 0.79% 0.09% - 0.46% Volatility 16.33% - 20.89% 20.74% - 23.53% 22.09% - 29.57% Weighted average grant-date fair value $ 34.75 $ 30.62 $ 31.59 Activity The following table shows our performance share unit activity for 2015 . GRANTS (IN THOUSANDS) WEIGHTED AVERAGE GRANT-DATE FAIR VALUE Nonvested at December 31, 2014 890 $ 29.46 Granted at target 239 $ 34.75 Vested (395 ) $ 29.08 Forfeited (23 ) $ 31.34 Performance adjustment (31 ) $ 30.62 Nonvested at December 31, 2015 (1) 680 $ 31.42 (1) As of December 31, 2015, there were approximately 134 thousand performance share units that had met the requisite service period and will be released as identified in the grant terms. The total grant-date fair value of performance share units vested was: • $9 million in 2015 • $7 million in 2014 • $5 million in 2013 For 2014 grants, the company exceeded the cash flow target, resulting in an initial number of shares earned equal to 114 percent of target. Because the company's two-year TSR ranking was between the 25 th and 50 th percentile, the initial number of performance shares granted decreased 11 percent . For 2013 grants, the company exceeded the cash flow target, resulting in an initial number of shares earned equal to 150 percent of target. Because the company's two-year TSR ranking was between the 25 th and 50 th percentile, the initial number of performance shares granted decreased 15 percent . As performance share units vest, a portion of the shares awarded is withheld to cover participant taxes. As a result, the number of stock units vested and the number of common shares issued will differ. STOCK APPRECIATION RIGHTS Through the Plan, we grant cash-settled stock appreciation rights as part of certain compensation awards. The Details Stock appreciation rights are similar to stock options. Employees benefit when the market price of our stock is higher on the exercise date than it was on the date the stock appreciation rights were granted. The differences are that the employee: • receives the benefit as a cash award and • does not purchase the underlying stock. The vesting conditions and exceptions are the same as for 10-year stock options. Details are in the Stock Options section earlier in this note. Stock appreciation rights are generally issued to employees outside of the U.S. Our Accounting We use a Black-Scholes option-valuation model to estimate the fair value of a stock appreciation right on its grant - date and every subsequent reporting date that the right is outstanding. Stock appreciation rights are liability-classified awards and the fair value is remeasured at every reporting date. The process used to develop our valuation assumptions is the same as for the 10-year stock options we grant. Details are in the Stock Options section earlier in this note. Weighted Average Assumptions Used to Re-measure Value of Stock Appreciation Rights at Year-End 2015 2014 2013 Expected volatility 22.10 % 18.20 % 24.02 % Expected dividends 4.20 % 3.21 % 2.81 % Expected term (in years) 1.94 1.32 1.16 Risk-free rate 0.99 % 0.45 % 0.19 % Weighted average fair value $ 6.96 $ 12.70 $ 8.68 Activity The following table shows our stock appreciation rights activity for 2015 . RIGHTS (IN THOUSANDS) WEIGHTED AVERAGE EXERCISE PRICE AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) AGGREGATE INTRINSIC VALUE (IN MILLIONS) Outstanding at December 31, 2014 417 $ 22.85 Granted 58 $ 35.40 Exercised (79 ) $ 23.91 Forfeited or expired (14 ) $ 31.01 Outstanding at December 31, 2015 382 $ 24.25 4.34 $ 14 Exercisable at December 31, 2015 289 $ 21.63 2.98 $ 11 The total liabilities paid for stock appreciation rights was: • $1 million in 2015 , • $2 million in 2014 and • $4 million in 2013 . UNRECOGNIZED SHARE-BASED COMPENSATION As of December 31, 2015 , our unrecognized share-based compensation cost for all types of share-based awards included $40 million related to non-vested equity-classified share-based compensation arrangements — expected to be recognized over a weighted average period of approximately 2.3 years . DEFERRED COMPENSATION STOCK EQUIVALENT UNITS Certain employees and our board of directors may defer compensation into stock-equivalent units. The Details The plan works differently for employees and directors. Eligible employees: • may choose to defer all or part of their bonus into stock-equivalent units; • may choose to defer part of their salary, except for executive officers; and • receive a 15 percent premium if the deferral is for at least five years. Our directors: • receive a portion of their annual retainer fee in the form of restricted stock units, which vest over one year and may be deferred into stock-equivalent units; • may choose to defer some or all of the remainder of their annual retainer fee into stock-equivalent units; and • do not receive a premium for their deferrals. Employees and directors also choose when the deferrals will be paid out although no deferrals may be paid until after the separation from service of the employee or director. Our Accounting We settle all deferred compensation accounts in cash for our employees. Our directors receive shares of common stock as payment for stock-equivalent units. In addition, we credit all stock-equivalent accounts with dividend equivalents. The number of common shares to be issued in the future to directors is 651,729 . Stock-equivalent units are: • liability-classified awards and • re-measured to fair value at every reporting date. The fair value of a stock-equivalent unit is equal to the market price of our stock. Activity The number of stock-equivalent units outstanding in our deferred compensation accounts was: • 1,003,053 as of December 31, 2015 ; • 944,966 as of December 31, 2014 ; and • 915,160 as of December 31, 2013 . |
CHARGES FOR RESTRUCTURING, CLOS
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS | 12 Months Ended |
Dec. 31, 2015 | |
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS | CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS Items Included in Our Restructuring, Closure and Asset Impairment Charges DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Restructuring and closure charges: Termination benefits $ 4 $ 27 $ 1 Pension and postretirement charges — 3 — Other restructuring and closure costs 6 12 4 Charges for restructuring and closures 10 42 5 Impairment of long-lived assets 15 2 372 Total charges for restructuring, closures and impairments $ 25 $ 44 $ 377 RESTRUCTURING AND CLOSURES During 2015, our restructuring and closure charges were primarily related to the closure of four distribution centers for our Wood Products business. 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. During 2013, our restructuring and closure charges were primarily related to various Wood Products operations we closed or curtailed and restructuring our corporate staff functions to support achieving our competitive performance goals. Other restructuring and closure costs include lease termination charges, dismantling and demolition of plant and equipment, gain or loss on disposition of assets, environmental cleanup costs and incremental costs to wind down operating facilities. ACCRUED TERMINATION BENEFITS Changes in accrued severance related to restructuring during 2015 were as follows: DOLLAR AMOUNTS IN MILLIONS Accrued severance as of December 31, 2014 $ 10 Charges 4 Payments (9 ) Accrued severance as of December 31, 2015 $ 5 ASSET IMPAIRMENTS The Impairment of Long-Lived Assets and Goodwill sections of Note 1: Summary of Significant Accounting Policies provide details about how we account for these impairments. Additional information can also be found in our Critical Accounting Policies . Long-Lived Assets Our long-lived asset impairments were primarily related to the following: • 2015 — We recognized an impairment charge of $13 million related to a nonstrategic asset held in Unallocated Items. The fair value of the asset was determined using significant unobservable inputs (Level 3) based on a discounted cash flow model. The asset was subsequently sold for no gain during 2015. • 2013 — charges include: – $356 million impairment of the Coyote Springs Property. Under the terms of the TRI Pointe transaction, certain assets and liabilities of WRECO and its subsidiaries were excluded from the transaction and retained by Weyerhaeuser, including assets and liabilities relating to the Coyote Springs Property. During fourth quarter 2013, following the announcement of the TRI Pointe transaction, WRECO and Weyerhaeuser began exploring strategic alternatives for the Coyote Springs Property and determined that Weyerhaeuser’s strategy for development of the Coyote Springs Property will likely differ from WRECO’s current development plan. WRECO’s development plan was long-term in nature with development and net cash flows covering at least 15-20 years. The undiscounted cash flows for the Coyote Springs Property under the WRECO development plan remained above the carrying value of the property. Weyerhaeuser Company’s strategy was to cease holding the Coyote Springs Property for development, and we initiated activities to market the assets to potential third-party buyers. The undiscounted cash flows under the Weyerhaeuser Company asset sale strategy were below the carrying value of the property. Consequently, we recorded a noncash charge of $356 million in fourth quarter 2013 for the impairment of the Coyote Springs Property in Unallocated Items. The fair value of the property was primarily based on an independent appraisal that was determined using both other observable inputs (Level 2) related to other market transactions and significant unobservable inputs (Level 3) such as the timing and amounts of future cash flows related to the development of the property, timing and amounts of proceeds from acreage sales, access to water for use on the property and discount rates applicable to the future cash flows. – $9 million related to the decision to permanently close our Colbert, Georgia engineered wood products facility in our Wood Products segment that was previously indefinitely closed. The fair value of the facility was determined using significant unobservable inputs (Level 3) based on liquidation values. |
OTHER OPERATING COSTS (INCOME),
OTHER OPERATING COSTS (INCOME), NET | 12 Months Ended |
Dec. 31, 2015 | |
OTHER OPERATING INCOME, NET | OTHER OPERATING COSTS (INCOME), NET Other operating costs (income), net: • includes both recurring and occasional income and expense items and • can fluctuate from year to year. Various Income and Expense Items Included in Other Operating Costs (Income), Net DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Gain on postretirement plan amendment (Note 9) $ — $ (151 ) $ — Gain on disposition of nonstrategic assets (12 ) (27 ) (19 ) Foreign exchange losses, net 47 27 7 Land management income (37 ) (34 ) (28 ) Litigation expense, net 23 9 16 Plum Creek merger-related costs 14 — — Other, net (17 ) (25 ) (11 ) Total $ 18 $ (201 ) $ (35 ) Gain on disposition of nonstrategic assets in 2014 included a $22 million pretax gain on the sale of a landfill in Washington State. Foreign exchange losses result from changes in exchange rates primarily related to our U.S. dollar denominated debt that is held by our Canadian subsidiary. 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 | 12 Months Ended |
Dec. 31, 2015 | |
INCOME TAXES | INCOME TAXES This note provides details about our income taxes applicable to continuing operations: • earnings before income taxes, • provision for income taxes, • effective income tax rate, • deferred tax assets and liabilities and • unrecognized tax benefits. Income taxes related to discontinued operations are discussed in Note 3: Discontinued Operations . EARNINGS BEFORE INCOME TAXES Domestic and Foreign Earnings From Continuing Operations Before Income Taxes DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Domestic earnings $ 421 $ 970 $ 198 Foreign earnings 82 43 122 Total $ 503 $ 1,013 $ 320 PROVISION FOR INCOME TAXES Provision (Benefit) for Income Taxes From Continuing Operations DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Current: Federal $ 3 $ (26 ) $ (80 ) State (1 ) 12 (18 ) Foreign (5 ) 3 (21 ) (3 ) (11 ) (119 ) Deferred: Federal (30 ) 178 (79 ) State 2 6 6 Foreign 28 12 21 — 196 (52 ) Total income tax provision (benefit) $ (3 ) $ 185 $ (171 ) EFFECTIVE INCOME TAX RATE Effective Income Tax Rate Applicable to Continuing Operations DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 U.S. federal statutory income tax $ 176 $ 354 $ 112 State income taxes, net of federal tax benefit 1 14 7 REIT income not subject to federal income tax (158 ) (161 ) (101 ) REIT benefit from change to tax law (13 ) — — Foreign taxes — (2 ) (8 ) Provision for unrecognized tax benefits (7 ) (4 ) (193 ) Repatriation of Canadian earnings — — 21 Domestic production activities deduction — — (13 ) Other, net (2 ) (16 ) 4 Total income tax provision (benefit) $ (3 ) $ 185 $ (171 ) Effective income tax rate (0.5 )% 18.3 % (53.4 )% DEFERRED TAX ASSETS AND LIABILITIES Deferred tax assets and liabilities reflect temporary differences between pretax book income and taxable income. Deferred tax assets represent tax benefits that have already been recorded for book purposes but will be recorded for tax purposes in the future. Deferred tax liabilities represent income that has been recorded for book purposes but will be reported as taxable income in the future. Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) Related to Continuing Operations DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Net noncurrent deferred tax asset 4 44 Net noncurrent deferred tax liability (86 ) (14 ) Net deferred tax asset (liability) $ (82 ) $ 30 Items Included in Our Deferred Income Tax Assets (Liabilities) DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Postretirement benefits $ 80 $ 101 Pension 260 369 State tax credits 56 56 Net operating loss carryforwards 59 86 Cellulosic biofuel producers credit 78 100 Other 203 223 Gross deferred tax assets 736 935 Valuation allowance (72 ) (72 ) Net deferred tax assets 664 863 Property, plant and equipment (496 ) (523 ) Timber installment notes (180 ) (180 ) Other (70 ) (130 ) Deferred tax liabilities (746 ) (833 ) Net deferred tax asset (liability) $ (82 ) $ 30 OTHER INFORMATION ABOUT OUR DEFERRED INCOME TAX ASSETS (LIABILITIES) Other information about our deferred income tax assets (liabilities) include: • net operating loss and credit carryforwards, • valuation allowances and • reinvestment of undistributed earnings. Net Operating Loss and Credit Carryforwards Our gross federal, state and foreign net operating loss carryforwards as of the end of 2015 totaled $903 million as follows: • U.S. REIT - $433 million , which expire from 2030 through 2035 , • U.S. TRS - $29 million , which expires in 2035 , • State - $299 million , which expire from 2024 through 2035 ; and • Foreign - $142 million , which expire from 2016 through 2032 . Our gross federal, state and foreign credit carryforwards as of the end of 2015 totaled $188 million as follows: • U.S. TRS - $93 million , which expire from 2019 through 2035 , • State - $43 million , which expire from 2016 through 2029 , and $46 million , which do not expire; and • Foreign - $6 million , which expire from 2016 through 2032 . Valuation Allowances With the exception of the valuation allowance discussed below, we believe it is more likely than not that we will have sufficient future taxable income to realize our deferred tax assets. Our valuation allowance on our deferred tax assets was $72 million as of the end of 2015 , primarily related to foreign and state net operating losses and state and provincial credits. Reinvestment of Undistributed Earnings The balance of our foreign undistributed earnings was approximately $34 million at the end of 2015 , all of which is permanently reinvested; therefore, it is not subject to U.S. income tax. Generally, such earnings become subject to U.S. tax upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability related to investments in our foreign subsidiaries. HOW WE ACCOUNT FOR INCOME TAXES The Income Taxes section of Note 1: Summary of Significant Accounting Policies provides details about how we account for our income taxes. UNRECOGNIZED TAX BENEFITS Unrecognized tax benefits represent potential future obligations to taxing authorities if uncertain tax positions we have taken on previously filed tax returns are not sustained. The total amount of unrecognized tax benefits as of December 31, 2015 and 2014 , are $6 million and $11 million , respectively, which does not include related interest of $1 million and $3 million , respectively. These amounts represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were not sustained, such as the federal deduction that could be realized if an unrecognized state deduction was not sustained. Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Balance at beginning of year $ 11 $ 26 Settlements (4 ) — Lapse of statute (1 ) (15 ) Balance at end of year $ 6 $ 11 The net liability recorded in our Consolidated Balance Sheet related to unrecognized tax benefits was $4 million as of December 31, 2015 , which includes interest of $1 million and is net of $3 million in credits and loss carryovers available to offset the liability. The net liability as of December 31, 2014 , was $4 million , which includes interest of $3 million and is net of $6 million in payments made in advance of settlements and $4 million in credits and loss carryovers available to offset the liability. The net liability recorded for tax positions across all jurisdictions that, if sustained, would affect our effective tax rate was $5 million as of December 31, 2015 , and $12 million as of December 31, 2014 , which includes interest of $1 million and $3 million , respectively. In accordance with our accounting policy, we accrue interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2015 , no U.S. federal income tax returns are under examination, with years 2012 forward open to examination. We are undergoing examinations in state jurisdictions for tax years 2011 through 2013, with tax years 2009 forward open to examination. We are also undergoing and are open to examinations in foreign jurisdictions for tax years 2010 forward . We expect that the outcome of any examination will not have a material effect on our consolidated financial statements; however, audit outcomes and the timing of audit settlements are subject to significant uncertainty. In the next 12 months, we estimate a decrease of $1 million in unrecognized tax benefits due to the lapse of applicable statutes of limitation. |
GEOGRAPHIC AREAS
GEOGRAPHIC AREAS | 12 Months Ended |
Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
GEOGRAPHIC AREAS | GEOGRAPHIC AREAS This note provides selected key financial data according to the geographical locations of our customers. The selected key financial data includes: • sales to unaffiliated customers, • export sales from the U.S., and • long-lived assets. SALES Our sales to unaffiliated customers outside the U.S. are primarily to customers in Canada, China, Japan and Europe. Our export sales include: • pulp, liquid packaging board, logs, lumber and wood chips to Japan; • pulp, logs and lumber to other Pacific Rim countries; and • pulp and plywood to Europe. Sales by Geographic Area FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31, 2014 (DOLLAR AMOUNTS IN MILLIONS) 2015 2014 2013 Sales to unaffiliated customers: U.S. $ 4,819 $ 4,889 $ 4,761 Japan 612 682 758 China 397 477 453 Canada 353 424 418 Europe 308 328 298 South America 82 87 80 Other foreign countries 511 516 486 Total $ 7,082 $ 7,403 $ 7,254 Export sales from the U.S.: Japan $ 558 $ 620 $ 676 China 333 416 411 Other 828 856 804 Total $ 1,719 $ 1,892 $ 1,891 LONG-LIVED ASSETS Our long-lived assets — used in the generation of revenues in the different geographical areas — are nearly all in the U.S. and Canada. Our long-lived assets include: • goodwill, • timber and timberlands and • property and equipment, including construction in progress. Long-Lived Assets by Geographic Area DOLLAR AMOUNTS IN MILLIONS December 31, December 31, December 31, Long-lived assets: U.S. (1) $ 8,187 $ 8,069 $ 8,116 Canada 460 579 652 Other foreign countries 654 676 670 Total $ 9,301 $ 9,324 $ 9,438 (1) Includes assets of discontinued operations in 2013. |
SELECTED QUARTERLY FINANCIAL IN
SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited) | SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited) Quarterly financial data provides a review of our results and performance throughout the year. Our earnings per share for the full year do not always equal the sum of the four quarterly earnings-per share amounts because of common share activity during the year. Key Quarterly Financial Data for the Last Two Years DOLLAR AMOUNTS IN MILLIONS EXCEPT PER-SHARE FIGURES First Quarter Second Quarter Third Quarter (1) Fourth Quarter Full Year 2015: Net sales $ 1,721 $ 1,807 $ 1,820 $ 1,734 $ 7,082 Operating income $ 200 $ 243 $ 259 $ 217 $ 919 Earnings from continuing operations before income taxes $ 120 $ 157 $ 175 $ 51 $ 503 Net earnings $ 101 $ 144 $ 191 $ 70 $ 506 Net earnings attributable to Weyerhaeuser common shareholders $ 90 $ 133 $ 180 $ 59 $ 462 Basic net earnings per share attributable to Weyerhaeuser common shareholders $ 0.17 $ 0.26 $ 0.35 $ 0.11 $ 0.89 Diluted net earnings per share attributable to Weyerhaeuser common shareholders $ 0.17 $ 0.26 $ 0.35 $ 0.11 $ 0.89 Dividends paid per share $ 0.29 $ 0.29 $ 0.31 $ 0.31 $ 1.20 Market prices - high/low $37.04 - $32.74 $33.19 - $31.06 $32.34 - $26.76 $32.72 - $26.73 $37.04 - $26.73 2014: Net sales $ 1,736 $ 1,964 $ 1,915 $ 1,788 $ 7,403 Operating income $ 308 $ 400 $ 318 $ 294 $ 1,320 Earnings from continuing operations before income taxes $ 234 $ 328 $ 237 $ 214 $ 1,013 Net earnings $ 194 $ 291 $ 1,164 $ 177 $ 1,826 Net earnings attributable to Weyerhaeuser common shareholders $ 183 $ 280 $ 1,153 $ 166 $ 1,782 Basic net earnings per share attributable to Weyerhaeuser common shareholders $ 0.31 $ 0.48 $ 2.17 $ 0.32 $ 3.20 Diluted net earnings per share attributable to Weyerhaeuser common shareholders $ 0.31 $ 0.47 $ 2.15 $ 0.31 $ 3.18 Dividends paid per share $ 0.22 $ 0.22 $ 0.29 $ 0.29 $ 1.02 Market prices - high/low $31.59 - $28.63 $33.26 - $27.48 $34.60 - $31.09 $36.88 - $31.61 $36.88 - $27.48 (1) Third Quarter 2014 includes a $972 million net gain on the Real Estate Divestiture recognized in 2014. See Note 3: Discontinued Operations for more information. |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Real Estate Investment Trust Election (REIT) | OUR ELECTION TO BE TAXED AS A REAL ESTATE INVESTMENT TRUST (REIT) Starting with our 2010 fiscal year, we elected to be taxed as a 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 no longer subject to corporate taxes on built-in-gains (the excess of fair market value over tax basis at January 1, 2010) due to a change in tax law in the fourth quarter 2015, which statutorily shortened the built-in-gains tax period from 10 years to 5 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 includes our manufacturing businesses and the portion of our Timberlands segment income included in the TRS. |
Consolidated Financial Statements | CONSOLIDATED FINANCIAL STATEMENTS Our consolidated financial statements provide an overall view of our results and financial condition. They include our accounts and the accounts of entities that 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. We record our share of equity in net earnings of equity affiliates within "Earnings (loss) from equity affiliates" in our Consolidated Statement of Operations in the period in which the earnings are recorded by our equity affiliates. Throughout these Notes to Consolidated Financial Statements, unless specified otherwise, references to “Weyerhaeuser,” "the company," “we” and “our” refer to the consolidated company. |
Our Business Segments | OUR BUSINESS SEGMENTS We are principally engaged in: • growing and harvesting timber; and • manufacturing, distributing and selling products made from trees. Our business segments are organized based primarily on products and services. Our Business Segments and Products SEGMENT PRODUCTS AND SERVICES Timberlands Logs, timber, minerals, oil and gas and international wood products Wood Products Softwood lumber, engineered wood products, structural panels and building materials distribution Cellulose Fibers Pulp, liquid packaging board and an equity interest in a newsprint joint venture We also transfer raw materials, semifinished materials and end products among our business segments. Because of this intracompany activity, accounting for our business segments involves: • pricing products transferred between our business segments at current market values and • allocating joint conversion and common facility costs according to usage by our business segment product lines. Gains or charges not related to or allocated to an individual operating segment are held in Unallocated Items. This includes a portion of items such as: share-based compensation; pension and postretirement costs; foreign exchange transaction gains and losses associated with financing; and the elimination of intersegment profit in inventory and the LIFO reserve. |
Foreign Currency Translation | FOREIGN CURRENCY TRANSLATION Local currencies are the functional currencies for most of our operations outside the U.S. We translate foreign currencies into U.S. dollars in two ways: • assets and liabilities — at the exchange rates in effect as of our balance sheet date; and • revenues and expenses — at average monthly exchange rates throughout the year. |
Estimates | ESTIMATES We prepare our financial statements according to U.S. generally accepted accounting principles (U.S. GAAP). This requires us to make estimates and assumptions during our reporting periods and at the date of our financial statements. The estimates and assumptions affect our: • reported amounts of assets, liabilities and equity; • disclosure of contingent assets and liabilities; and • reported amounts of revenues and expenses. While we do our best in preparing these estimates, actual results can and do differ from those estimates and assumptions. |
Fair Value Measurements | FAIR VALUE MEASUREMENTS We use a fair value hierarchy in accounting for certain nonfinancial assets and liabilities including: • long-lived assets (asset groups) measured at fair value for an impairment assessment, • reporting units measured at fair value in the first step of a goodwill impairment test, • nonfinancial assets and nonfinancial liabilities measured at fair value in the second step of a goodwill impairment assessment, • assets acquired and liabilities assumed in a business acquisition and • asset retirement obligations initially measured at fair value. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entity’s pricing based upon its own market assumptions. The fair value hierarchy consists of the following three levels: • Level 1 — Inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 — Inputs are: – quoted prices for similar assets or liabilities in an active market; – quoted prices for identical or similar assets or liabilities in markets that are not active; or – inputs other than quoted prices that are observable and market-corroborated inputs, which are derived principally from or corroborated by observable market data. • Level 3 — Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. |
Reclassifications | RECLASSIFICATIONS We have reclassified certain balances and results from the prior years to be consistent with our 2015 reporting. This makes year-to-year comparisons easier. Our reclassifications had no effect on net earnings or Weyerhaeuser shareholders’ interest. Our reclassifications present the results of operations discontinued in 2014 separately on our Consolidated Statement of Operations and in the related footnotes. Note 3: Discontinued Operations provides more information about our discontinued operations. |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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. In August 2015, the FASB issued ASU 2015-14, which deferred the effective date of ASU 2014-09 for an additional year. We plan to adopt the standard on January 1, 2018 and 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. In April 2015, FASB issued ASU 2015-03, which amends the presentation of debt issuance costs on the consolidated balance sheet. Under the new guidance, debt issuance costs are presented as a direct deduction from the carrying amount of the debt liability rather than as an asset. The new guidance is effective retrospectively for fiscal periods starting after December 15, 2015 and early adoption is permitted. We expect to adopt ASU 2015-03 on January 1, 2016 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 2015, FASB issued ASU 2015-07, which clarifies the presentation within the fair value hierarchy of certain investments held within our pension plan. The new guidance is effective retrospectively for fiscal periods starting after December 15, 2015 and early adoption is permitted. We expect to adopt ASU 2015-07 on January 1, 2016. This new guidance eliminates the requirement to categorize certain pension investments in the fair value hierarchy. Upon adoption these investments will be presented separately from the fair value hierarchy and reconciled to total investments in our consolidated financial statements and related disclosures. In July 2015, FASB issued ASU 2015-11, which simplifies the measurement of inventories valued under most methods, including our inventories valued under FIFO – the first-in, first-out – and moving average cost methods. Inventories valued under LIFO – the last-in, first-out method – are excluded. Under this new guidance, inventories valued under these methods would be valued at the lower of cost or net realizable value, with net realizable value defined as the estimated selling price less reasonable costs to sell the inventory. The new guidance is effective prospectively for fiscal periods starting after December 15, 2016 and early adoption is permitted. We expect to adopt ASU 2015-11 on January 1, 2017 and are evaluating the impact on our consolidated financial statements and related disclosures. In September 2015, FASB issued ASU 2015-16, which requires an acquirer in a business combination to recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The update also requires the acquirer to record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects that result from the change to provisional amounts, calculated as if the accounting had been completed at the acquisition date, and to disclose the portion of the amount recorded in current period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The new guidance is effective prospectively for fiscal periods starting after December 15, 2015 and early adoption is permitted. We expect to adopt ASU 2015-16 on January 1, 2016 and have determined that its adoption will not have a material impact on our consolidated financial statements and related disclosures at that time. In November 2015, FASB issued ASU 2015-17, which simplifies the presentation of deferred income taxes by no longer requiring deferred tax assets and liabilities to be classified as current or noncurrent, instead requiring that all deferred tax assets and liabilities be classified as noncurrent. The new guidance is effective for annual periods starting after December 15, 2017 and early adoption is permitted. We elected to adopt ASU 2015-17 effective October 1, 2015 and have reclassified deferred tax assets and liabilities accordingly in our consolidated balance sheet and in related disclosures for all periods presented. |
Property and Equipment | Property and Equipment We maintain property accounts on an individual asset basis. Here is how we handle major items: • Improvements to and replacements of major units of property are capitalized. • Maintenance, repairs and minor replacements are expensed. • Depreciation is calculated using a straight-line method at rates based on estimated service lives. • Logging roads are generally amortized — as timber is harvested — at rates based on the volume of timber estimated to be removed. • Cost and accumulated depreciation of property sold or retired are removed from the accounts and the gain or loss is included in earnings. Buildings and improvements for property and equipment have estimated lives that are generally at either the high end or low end of the range from 10 years to 40 years , depending on the type and performance of construction. The maximum service lives for machinery and equipment varies among our operations: • Timberlands — 15 years ; • Wood products manufacturing facilities — 20 years ; and • Pulp mills — 25 years . |
Timber and Timberlands | Timber and Timberlands We carry timber and timberlands at cost less depletion charged to disposals. Depletion refers to the carrying value of timber that is harvested, lost as a result of casualty, or sold. Key activities affecting how we account for timber and timberlands include: • reforestation, • depletion and • forest management in Canada. Reforestation. Generally, we capitalize initial site preparation and planting costs as reforestation. We transfer reforestation to a merchantable timber classification when the timber is considered harvestable. That generally occurs after: • 15 years in the South and • 30 years in the West. Generally, we expense costs after the first planting as they are incurred or over the period of expected benefit. These costs include: • fertilization, • vegetation and insect control, • pruning and precommercial thinning, • property taxes and • interest. Accounting practices for these costs do not change when timber becomes merchantable and harvesting starts. Depletion. To determine depletion rates, we divide the net carrying value of timber by the related volume of timber estimated to be available over the growth cycle. To determine the growth cycle volume of timber, we consider: • regulatory and environmental constraints, • our management strategies, • inventory data improvements, • growth rate revisions and recalibrations and • known dispositions and inoperable acres. We include the cost of timber harvested in the carrying values of raw materials and product inventories. As these inventories are sold to third parties, we include them in the cost of products sold. Forest management in Canada. We managed timberlands under long-term licenses in various Canadian provinces that are: • granted by the provincial governments; • granted for initial periods of 15 to 25 years; and • renewable provided we meet reforestation, operating and management guidelines. Calculation of the fees we pay on the timber we harvest: • varies from province to province, • is tied to product market pricing and • depends upon the allocation of land management responsibilities in the license. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We review long-lived assets — including certain identifiable intangibles — for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Impaired assets held for use are written down to fair value. Impaired assets held for sale are written down to fair value less cost to sell. We determine fair value based on: • appraisals, • market pricing of comparable assets, • discounted value of estimated cash flows from the asset and • replacement values of comparable assets. |
Goodwill | Goodwill Goodwill is the purchase price minus the fair value of net assets acquired when we buy another entity. We assess goodwill for impairment: • using a fair-value-based approach and • at least annually — at the beginning of the fourth quarter. In 2015 the fair value of the reporting unit with goodwill substantially exceeded its carrying value. |
Financial Instruments | Financial Instruments We estimate the fair value of financial instruments where appropriate. The assumptions we use — including the discount rate and estimates of cash flows — can significantly affect our fair-value amounts. Our fair values are estimates and may not match the amounts we would realize upon sale or settlement of our financial positions. 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. |
Cash and Cash Equivalents and Accounts Payable | Cash and Cash Equivalents Cash equivalents are investments with original maturities of 90 days or less. We state cash equivalents at cost, which approximates market. Accounts Payable Our banking system replenishes our major bank accounts daily as checks we have issued are presented for payment. As a result, we have negative book cash balances due to outstanding checks that have not yet been paid by the bank. These negative balances are included in accounts payable on our Consolidated Balance Sheet . Changes in these negative cash balances are reported as financing activities in our Consolidated Statement of Cash Flows . We had no negative book cash balances as of December 31, 2015 and December 31, 2014 . |
Concentration of Risk | Concentration of Risk We disclose customers that represent a concentration of credit risk. As of December 31, 2015 , no customer accounted for 10 percent or more of our net sales or accounts receivable balances. |
Revenue Recognition | Revenue Recognition Operations generally recognize revenue upon shipment to customers. For certain export sales, revenue is recognized when title transfers at the foreign port. For timberland sales, we recognize revenue when title and possession have been transferred to the buyer and all other criteria for sale and profit recognition have been satisfied. |
Inventories | Inventories We state inventories at the lower of cost or market. Cost includes labor, materials and production overhead. 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. |
Shipping and Handling Costs | Shipping and Handling Costs We classify shipping and handling costs in the costs of products sold in our Consolidated Statement of Operations . |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method. Unrecognized tax benefits represent potential future funding obligations to taxing authorities if uncertain tax positions the company has taken on previously filed tax returns are not sustained. In accordance with the company’s accounting policy, accrued interest and penalties related to unrecognized tax benefits are recognized as a component of income tax expense. We recognize deferred tax assets and liabilities to reflect: • future tax consequences due to differences between the carrying amounts for financial purposes and the tax bases of certain items and • operating loss and tax credit carryforwards. To measure deferred tax assets and liabilities, we: • determine when the differences between the carrying amounts and tax bases of affected items are expected to be recovered or resolved and • use enacted tax rates expected to apply to taxable income in those years. |
Share-Based Compensation | Share-Based Compensation We generally measure the fair value of share-based awards on the dates they are granted or modified. These measurements establish the cost of the share-based awards for accounting purposes. We then recognize the cost of share-based awards in our Consolidated Statement of Operations over each employee’s required service period. Note 17: Share-Based Compensation provides more information about our share-based compensation. HOW WE ACCOUNT FOR SHARE-BASED AWARDS We: • use a fair-value-based measurement for share-based awards, and • recognize the cost of share-based awards in our consolidated financial statements. We recognize the cost of share-based awards in our Consolidated Statement of Operations over the required service period — generally the period from the date of the grant to the date when it is vested. Special situations include: • Awards that vest upon retirement — the required service period ends on the date an employee is eligible for retirement, including early retirement. • Awards that continue to vest following job elimination or the sale of a business — the required service period ends on the date the employment from the company is terminated. In these special situations, compensation expense from share-based awards is recognized over a period that is shorter than the stated vesting period. |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans We recognize the overfunded or underfunded status of our defined benefit pension and other postretirement plans on our Consolidated Balance Sheet and recognize changes in the funded status through comprehensive income (loss) in the year in which the changes occur. Actuarial valuations determine the amount of the pension and other postretirement benefit obligations and the net periodic benefit cost we recognize. The net periodic benefit cost includes: • cost of benefits provided in exchange for employees’ services rendered during the year; • interest cost of the obligations; • expected long-term return on fund assets; • gains or losses on plan settlements and curtailments; • amortization of prior service costs and plan amendments over the average remaining service period of the active employee group covered by the plans or the average remaining life expectancy in situations where the plan participants affected by the plan amendment are inactive; and • amortization of cumulative unrecognized net actuarial gains and losses — generally in excess of 10 percent of the greater of the benefit obligation or market-related value of plan assets at the beginning of the year — over the average remaining service period of the active employee group covered by the plans or the average remaining life expectancy in situations where the plan participants are inactive. Pension plans. We have pension plans covering most of our employees. Determination of benefits differs for salaried, hourly and union employees: • Salaried employee benefits are based on each employee’s highest monthly earnings for five consecutive years during the final 10 years before retirement. • Hourly and union employee benefits generally are stated amounts for each year of service. • Union employee benefits are set through collective-bargaining agreements. We contribute to our U.S. and Canadian pension plans according to established funding standards. The funding standards for the plans are: • U.S. pension plans — according to the Employee Retirement Income Security Act of 1974; and • Canadian pension plans — according to the applicable provincial pension act and the Income Tax Act. Postretirement benefits other than pensions. We provide certain postretirement health care and life insurance benefits for some retired employees. In some cases, we pay a portion of the cost of the benefit. Note 9: Pension and Other Postretirement Benefit Plans provides additional information about changes made in our postretirement benefit plans during 2015 and 2014 . |
Environmental Remediation | Environmental Remediation We accrue losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Future expenditures for environmental remediation obligations are not discounted to their present value. Recoveries of environmental remediation costs from other parties are recorded as assets when the recovery is deemed probable and does not exceed the amount of losses previously recorded. Estimates. We believe it is reasonably possible, based on currently available information and analysis, that remediation costs for all identified sites may exceed our existing reserves by up to $116 million . This estimate, in which those additional costs may be incurred over several years, is the upper end of the range of reasonably possible additional costs. The estimate: • is much less certain than the estimates on which our accruals currently are based, and • uses assumptions that are less favorable to us among the range of reasonably possible outcomes. In estimating our current accruals and the possible range of additional future costs, we: • assumed we will not bear the entire cost of remediation of every site, • took into account the ability of other potentially responsible parties to participate, and • considered each party ’ s financial condition and probable contribution on a per-site basis. |
Earnings Per Share, Policy | "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 may 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 years ended December 31, 2015 and 2014 . Under the provisions of the two-class method, basic and diluted earnings per share would be presented for both preference and common shareholders. |
Pension and Other Postretirement Plans, Pensions, Policy | Valuation of Our Plan Assets The pension assets are stated at fair value based upon the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the reporting date. We do not value pension investments based upon a forced or distressed sale scenario. Instead, we consider both observable and unobservable inputs that reflect assumptions applied by market participants when setting the exit price of an asset or liability in an orderly transaction within the principal market of that asset or liability. We value the pension plan assets based upon the observability of exit pricing inputs and classify pension plan assets based upon the lowest level input that is significant to the fair value measurement of the pension plan assets in their entirety. The fair value hierarchy we follow is outlined below; Level 1: Inputs are unadjusted quoted prices for identical assets and liabilities traded in an active market. Level 2: Inputs are quoted prices in non-active markets for which pricing inputs are observable either directly or indirectly at the reporting date. Level 3: Inputs are derived from valuation techniques in which one or more significant inputs or value drivers are unobservable. The pension assets are comprised of cash and short-term investments, derivative contracts, common and preferred stock and fund units. The fund units are typically limited liability interests in hedge funds, private equity funds, real estate funds and cash funds. Each of these assets participates in its own unique principal market. Cash and short-term investments, when held directly, are valued at cost. Common and preferred stocks are valued at exit prices quoted in the public markets. Derivative contracts held by our pension trusts are not publicly traded and each derivative contract is specifically negotiated with a unique financial counterparty and references either illiquid fund units or a unique number of synthetic units of a publicly reported market index. The derivative contracts are valued based upon valuation statements received from the financial counterparties. Fund units are valued based upon the net asset values of the funds which we believe represent the per-unit prices at which new investors are permitted to invest and the prices at which existing investors are permitted to exit. To the degree net asset values as of the end of the year have not been received, we use the most recently reported net asset values and adjust for market events and cash flows that have occurred between the interim date and the end of the year to estimate the fair values as of the end of the year. Assets that do not have readily available quoted prices in an active market require a higher degree of judgment to value and have a higher degree of risk that the value that could have been realized upon sale as of the valuation date could be different from the reported value than assets with observable pricing inputs. It is possible that the full extent of market price, liquidity, currency, interest rate, or credit risks may not be fully factored into the fair values of our pension plan assets that use significant unobservable inputs. Approximately $4.7 billion , or 86.0 percent , of our pension plan assets were classified as Level 3 assets as of December 31, 2015 . 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. When the difference is significant, we revise the year-end estimated fair value of pension plan assets to incorporate year-end net asset values received after we have filed our annual report on Form 10-K. |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Sales and Contribution (Charge) to Earnings | Sales and Contribution (Charge) to Earnings DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS WOOD PRODUCTS CELLULOSE FIBERS UNALLOCATED ITEMS (1) AND INTERSEGMENT ELIMINATIONS CONSOLIDATED Sales to unaffiliated customers 2015 $ 1,350 $ 3,872 $ 1,860 $ — $ 7,082 2014 $ 1,497 $ 3,970 $ 1,936 $ — $ 7,403 2013 $ 1,343 $ 4,009 $ 1,902 $ — $ 7,254 Intersegment sales 2015 $ 830 $ 82 $ — $ (912 ) $ — 2014 $ 867 $ 80 $ — $ (947 ) $ — 2013 $ 799 $ 71 $ — $ (870 ) $ — Contribution (charge) to earnings from continuing operations 2015 $ 549 $ 258 $ 119 $ (76 ) $ 850 2014 $ 613 $ 327 $ 291 $ 126 $ 1,357 2013 $ 470 $ 441 $ 200 $ (422 ) $ 689 (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 financing, and the elimination of intersegment profit in inventory and the LIFO reserve. |
Reconciliation of Contribution to Earnings to Net Earnings Attributable to Weyerhaeuser | Reconciliation of Contribution to Earnings to Net Earnings Attributable to Weyerhaeuser DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Net contribution to earnings from continuing operations $ 850 $ 1,357 $ 689 Net contribution to earnings from discontinued operations — 1,017 116 Total contribution to earnings 850 2,374 805 Interest expense, net of capitalized interest (continuing and discontinued operations) (347 ) (347 ) (371 ) Income before income taxes (continuing and discontinued operations) 503 2,027 434 Income taxes (continuing and discontinued operations) 3 (201 ) 129 Net earnings attributable to Weyerhaeuser $ 506 $ 1,826 $ 563 |
Additional Financial Information | Additional Financial Information DOLLAR AMOUNTS IN MILLIONS TIMBERLANDS WOOD PRODUCTS CELLULOSE FIBERS UNALLOCATED ITEMS CONSOLIDATED Depreciation, depletion and amortization 2015 $ 209 $ 106 $ 154 $ 10 $ 479 2014 $ 207 $ 119 $ 155 $ 12 $ 493 2013 $ 166 $ 123 $ 156 $ 13 $ 458 Net pension and postretirement cost (credit) (1) 2015 $ 9 $ 27 $ 17 $ (11 ) $ 42 2014 $ 10 $ 24 $ 11 $ (45 ) $ — 2013 $ 10 $ 28 $ 18 $ 40 $ 96 Charges for restructuring, closures and impairments (2) 2015 $ — $ 10 $ — $ 15 $ 25 2014 $ 1 $ 2 $ — $ 41 $ 44 2013 $ 2 $ 13 $ — $ 362 $ 377 Earnings (loss) from equity affiliates 2015 $ — $ — $ (105 ) $ — $ (105 ) 2014 $ — $ — $ (1 ) $ — $ (1 ) 2013 $ — $ — $ 3 $ (2 ) $ 1 Capital expenditures 2015 $ 75 $ 287 $ 118 $ 3 $ 483 2014 $ 74 $ 190 $ 123 $ 4 $ 391 2013 $ 73 $ 113 $ 92 $ 5 $ 283 Investments in and advances to equity affiliates and unconsolidated entities 2015 $ — $ — $ 74 $ — $ 74 2014 $ — $ — $ 188 $ — $ 188 2013 $ — $ — $ 190 $ — $ 190 Total assets (3) 2015 $ 7,260 $ 1,541 $ 1,984 $ 1,701 $ 12,486 2014 $ 7,327 $ 1,430 $ 2,214 $ 2,294 $ 13,265 2013 $ 7,578 $ 1,326 $ 2,299 $ 3,169 $ 14,372 (1) Net pension and postretirement cost (credit) excludes special items, as well as the recognition of curtailments, settlements and special termination benefits due to closures, restructuring or divestitures. See Note 9: Pension and Other Postretirement Benefit Plans for more information. Note 18: Charges for Restructuring, Closures and Asset Impairments for more information (3) Unallocated Items total assets includes assets of discontinued operations in 2013. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Components of the net gain on divestiture | The following table presents the components of the net gain on divestiture: DOLLAR AMOUNTS IN MILLIONS 2014 Proceeds: Common shares tendered (58,813,151 shares at $33.22 per share) $ 1,954 Cash 707 2,661 Less: Net book value of contributed assets (1,671 ) Transaction costs, net of reimbursement (18 ) (1,689 ) Gain on WRECO divestiture $ 972 |
Sales and Net Earnings from Discontinued Operations | Sales and Net Earnings from Discontinued Operations 2014 (1) 2013 Net sales from discontinued operations $ 573 $ 1,275 Income from discontinued operations 42 114 Income taxes (16 ) (42 ) Net income from operations 26 72 Net gain on divestiture 972 — Net earnings from discontinued operations 998 72 (1) Discontinued operations in 2014 covered only 188 days. |
Carrying Value of Assets and Liabilities of Discontinued Operations | Carrying Value of Assets and Liabilities of Discontinued Operations DOLLAR AMOUNTS IN MILLIONS December 31, 2013 Assets Cash and cash equivalents $ 5 Receivables, less discounts and allowances 51 Prepaid expenses 11 Total current assets 67 Property and equipment, net 15 Real estate in process of development and for sale 851 Land being processed for development 596 Investments in and advances to equity affiliates 21 Deferred tax assets 136 Other assets 96 Total noncurrent assets 1,715 Total assets $ 1,782 Liabilities Accounts payable $ 41 Accrued liabilities 113 Total current liabilities 154 Long-term debt (nonrecourse to the company) held by variable interest entities 5 Other liabilities 27 Total noncurrent liabilities 32 Total liabilities $ 186 Noncontrolling interests $ 34 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 2012 DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES 2013 Net sales $ 7,371 Net earnings from continuing operations attributable to Weyerhaeuser common shareholders $ 485 Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, basic $ 0.84 Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, diluted $ 0.83 |
Estimated Fair Values of Identifiable Assets Acquired and Liabilities Assumed | Estimated Fair Values of Identifiable Assets Acquired and Liabilities Assumed as of the Acquisition Date DOLLAR AMOUNTS IN MILLIONS July 23, Measurement Period Adjustments December 31, Current assets $ 46 $ — $ 46 Property and equipment 39 1 40 Timber and timberlands 2,654 2 2,656 Other assets 2 — 2 Total assets acquired 2,741 3 2,744 Current liabilities 10 — 10 Long-term debt 1,122 — 1,122 Other liabilities 5 3 8 Total liabilities assumed 1,137 3 1,140 Net assets acquired $ 1,604 $ — $ 1,604 |
NET EARNINGS PER SHARE (Tables)
NET EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Potential Shares Not Included in the Computation of Diluted Earnings per Share | Potential Shares Not Included in the Computation of Diluted Earnings per Share Shares in thousands 2015 2014 2013 Stock options 5,016 — 4,618 Performance share units 155 — — Preference Shares 25,307 24,988 24,865 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventories as of the End of Our Last Two Years | Inventories as of the End of Our Last Two Years DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, LIFO inventories: Logs and chips $ 15 $ 9 Lumber, plywood and panels 48 55 Pulp and paperboard 111 122 Other products 11 11 FIFO or moving average cost inventories: Logs and chips 38 38 Lumber, plywood, panels and engineered wood products 75 80 Pulp and paperboard 32 35 Other products 90 96 Materials and supplies 148 149 Total $ 568 $ 595 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |
Carrying Value of Property and Equipment and Estimated Service Lives | Carrying Value of Property and Equipment and Estimated Service Lives DOLLAR AMOUNTS IN MILLIONS RANGE OF LIVES DECEMBER 31, DECEMBER 31, Property and equipment, at cost: Land N/A $ 121 $ 127 Buildings and improvements 10–40 1,208 1,220 Machinery and equipment 2–25 6,675 6,706 Roads 10–20 624 609 Other 3–10 252 285 Total cost 8,880 8,947 Allowance for depreciation and amortization (6,294 ) (6,324 ) Property and equipment, net $ 2,586 $ 2,623 |
EQUITY AFFILIATES (Tables)
EQUITY AFFILIATES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |
Assets and Liabilities of Equity Affiliates | Assets and Liabilities of Equity Affiliates DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Current assets $ 89 $ 123 Noncurrent assets $ 101 $ 413 Current liabilities $ 25 $ 30 Noncurrent liabilities $ 6 $ 109 |
Operating Results of Equity Affiliates | Operating Results of Equity Affiliates DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Net sales $ 462 $ 501 $ 534 Operating income (loss) $ (311 ) $ (2 ) $ 3 Net income (loss) $ (197 ) $ — $ 3 |
PENSION AND OTHER POSTRETIREM40
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Changes in Projected Benefit Obligations of Our Pension and Other Postretirement Benefit Plans | Changes in Projected Benefit Obligations of Our Pension and Other Postretirement Benefit Plans DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2015 2014 2015 2014 Reconciliation of projected benefit obligation: Projected benefit obligation beginning of year $ 6,698 $ 5,834 $ 303 $ 321 Service cost 57 53 — 1 Interest cost 265 271 9 10 Plan participants’ contributions — — 9 13 Actuarial (gains) losses (309 ) 1,006 (34 ) 4 Foreign currency translation (159 ) (87 ) (15 ) (7 ) Benefits paid (includes lump sum settlements) (342 ) (391 ) (32 ) (44 ) Plan amendments and other (1 ) 1 — 2 Special/contractual termination benefits — 7 — — Plan transfer/Acquisitions 2 4 — 3 Projected benefit obligation at end of year $ 6,211 $ 6,698 $ 240 $ 303 |
Changes in Fair Value of Plan Assets | Changes in Fair Value of Plan Assets DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2015 2014 2015 2014 Fair value of plan assets at beginning of year (estimated) $ 5,643 $ 5,614 $ — $ — Adjustment for final fair value of plan assets 57 53 — — Actual return on plan assets 226 368 — — Foreign currency translation (155 ) (75 ) — — Employer contributions and benefit payments 60 70 23 31 Plan participants’ contributions — — 9 13 Plan transfer/Acquisitions 2 4 — — Benefits paid (includes lump sum settlements) (342 ) (391 ) (32 ) (44 ) Fair value of plan assets at end of year (estimated) $ 5,491 $ 5,643 $ — $ — |
Funded Status of Our Pension and Other Postretirement Benefit Plans | Funded Status of Our Pension and Other Postretirement Benefit Plans DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2015 2014 2015 2014 Noncurrent assets $ 70 $ 8 $ — $ — Current liabilities (21 ) (21 ) (22 ) (26 ) Noncurrent liabilities (769 ) (1,042 ) (218 ) (277 ) Funded status $ (720 ) $ (1,055 ) $ (240 ) $ (303 ) |
Schedule of Allocation of Plan Assets | The net pension plan assets, when categorized in accordance with this fair value hierarchy, are as follows: DOLLAR AMOUNTS IN MILLIONS 2015 Level 1 Level 2 Level 3 Total Pension trust investments: Fixed income instruments $ 668 $ 46 $ — 714 Hedge funds 87 (37 ) 3,388 3,438 Private equity and related funds — — 1,267 1,267 Real estate and related funds — — 67 67 Common and preferred stock and equity index instruments — 3 — 3 Total pension trust investments $ 755 $ 12 $ 4,722 $ 5,489 Accrued liabilities, net (8 ) Pension trust net assets 5,481 Canadian nonregistered plan assets: Cash $ 6 $ — $ — 6 Investments 4 — — 4 Total Canadian nonregistered plan assets $ 10 $ — $ — $ 10 Total plan assets $ 5,491 DOLLAR AMOUNTS IN MILLIONS 2014 Level 1 Level 2 Level 3 Total Pension trust investments: Fixed income instruments $ 646 $ 36 $ 3 685 Hedge funds 103 (22 ) 3,333 3,414 Private equity and related funds — 3 1,422 1,425 Real estate and related funds — — 82 82 Common and preferred stock and equity index instruments 25 12 — 37 Total pension trust investments $ 774 $ 29 $ 4,840 $ 5,643 Accrued liabilities, net (13 ) Pension trust net investments 5,630 Canadian nonregistered plan assets: Cash $ 7 $ — $ — 7 Investments 6 — — 6 Total Canadian nonregistered plan assets $ 13 $ — $ — $ 13 Total plan assets $ 5,643 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | A reconciliation of the beginning and ending balances of the pension plan assets measured at fair value using significant unobservable inputs (Level 3) is presented below: DOLLAR AMOUNTS IN MILLIONS INVESTMENTS Hedge funds Private equity and related funds Real estate and related funds Fixed Income Total Balance as of December 31, 2013 $ 3,225 $ 1,606 $ 101 $ 3 $ 4,935 Net realized gains (losses) 186 128 8 — 322 Net change in unrealized appreciation (depreciation) 76 (130 ) (4 ) — (58 ) Purchases 541 177 5 — 723 Sales (540 ) (359 ) (28 ) — (927 ) Issuances 52 — — — 52 Settlements (132 ) — — — (132 ) Transfers, Out (1) (75 ) — — — (75 ) Balance as of December 31, 2014 $ 3,333 $ 1,422 $ 82 $ 3 $ 4,840 Net realized gains (losses) 143 100 9 1 253 Net change in unrealized appreciation (depreciation) 47 (117 ) (11 ) — (81 ) Purchases 441 141 6 — 588 Sales (539 ) (279 ) (19 ) (4 ) (841 ) Issuances 47 — — — 47 Settlements (84 ) — — — (84 ) Transfers, Out (1) — — — — — Balance as of December 31, 2015 $ 3,388 $ 1,267 $ 67 $ — $ 4,722 (1) One hedge fund completed an initial public offering during 2014; as such the security was transferred from Level 3 to Level 1 in 2014. |
Net Periodic Benefit Cost (Credit) | Net Periodic Benefit Cost (Credit) DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2015 2014 2013 2015 2014 2013 Net periodic benefit cost (credit): Service cost (1) $ 57 $ 53 $ 64 $ — $ 1 $ 1 Interest cost 265 271 244 9 10 12 Expected return on plan assets (476 ) (467 ) (439 ) — — — Amortization of actuarial loss 182 125 221 10 12 14 Amortization of prior service cost (credit) (2) 4 5 7 (9 ) (161 ) (23 ) Recognition of curtailments, settlements and special termination benefits due to closures, restructuring or divestitures (1) — 9 — — — — Other — — — — (4 ) — Net periodic benefit cost (credit) $ 32 $ (4 ) $ 97 $ 10 $ (142 ) $ 4 (1) Service cost includes $2 million in 2014 and $4 million in 2013 for employees that were part of the Real Estate Divestiture. These charges are included in our results of discontinued operations. Curtailment and special termination benefits are related to involuntary terminations, due to restructuring activities, as well as the Real Estate Divestiture. (2) During fourth quarter 2013, the decision was ratified to eliminate Company funding of the Post-Medicare Health Reimbursement Account (HRA) for certain salaried retirees after 2014. This change was communicated to affected retirees during January 2014. As a result, we recognized a pretax gain of $151 million in 2014 from this plan amendment. |
Estimated Amortization from Cumulative Other Comprehensive Loss in 2016 | Estimated Amortization from Cumulative Other Comprehensive Loss in 2016 Amortization of the net actuarial loss and prior service cost (credit) of our pension and postretirement benefit plans will affect our other comprehensive income in 2016 . The net effect of the estimated amortization will be an increase in net periodic benefit costs or a decrease in net periodic benefit credits in 2016 . DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS TOTAL Net actuarial loss $ 152 $ 9 $ 161 Prior service cost (credit) 4 (8 ) (4 ) Net effect cost $ 156 $ 1 $ 157 |
Estimated Projected Benefit Payments for the Next 10 Years | Estimated Projected Benefit Payments for the Next 10 Years DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 2016 $ 334 $ 22 2017 $ 340 $ 21 2018 $ 347 $ 20 2019 $ 354 $ 19 2020 $ 360 $ 19 2021-2025 $ 1,858 $ 81 |
Discount Rates and Rates of Compensation Increase Used in Estimating Our Pension and Other Postretirement Benefit Obligation | Discount Rates and Rates of Compensation Increase Used in Estimating Our Pension and Other Postretirement Benefit Obligation PENSION OTHER POSTRETIREMENT BENEFITS DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, Discount rates: United States 4.50 % 4.10 % 4.00 % 3.60 % Canada 4.00 % 3.90 % 3.90 % 3.80 % Lump sum distributions (US salaried and nonqualified plans only) (1) PPA Table PPA Table N/A N/A Rate of compensation increase: Salaried: United States Determined by participant age, ranging from 2.00% to 13.00% 2.50% for 2014, 2015 N/A N/A Canada 2.50% for 2015 2.50% for 2014, 2015 N/A N/A Hourly: United States Determined by participant age, ranging from 2.30% to 13.00% 3.00 % N/A N/A Canada 3.25 % 3.25 % N/A N/A Election of lump sum or installment distributions (US salaried and nonqualified plans only) 60.00 % 60.00 % N/A N/A (1) The PPA Phased Table: Interest and mortality assumptions as mandated by Pension Protection Act of 2006 including the phase out of the prior interest rate basis in 2013. |
Rates Used to Estimate Our Net Periodic Benefit Costs | Rates Used to Estimate Our Net Periodic Benefit Costs PENSION OTHER POSTRETIREMENT BENEFITS 2015 2014 2013 2015 2014 2013 Discount rates: United States 4.10% 4.90% for the first half of 2014 and 4.40% for the second half of 2014 3.70% 3.60% 4.00% 3.00% Salaried – lump sum distributions (U.S. salaried and nonqualified plan only) (1) PPA Table PPA Table PPA phased N/A N/A N/A Canada 3.90% 4.70% 4.10% 3.80% 4.60% 4.00% Expected return on plan assets: Qualified/registered plans 9.00% 9.00% 9.00% Nonregistered plans (Canada only) 3.50% 3.50% 3.50% Rate of compensation increase: Salaried: United States 2.50% for 2015 and 3.50% thereafter 2.50% for 2014 2.50% for 2013 N/A N/A N/A Canada 2.50% for 2015 2.50% for 2014 2.50% for 2013 N/A N/A N/A Hourly: United States 3.00% 3.00% 3.00% N/A N/A N/A Canada 3.25% 3.25% 3.25% N/A N/A N/A Election of lump sum distributions (U.S. salaried and nonqualified plans only) 60.00% 60.00% 56.00% N/A N/A N/A (1) PPA Phased Table: Interest and mortality assumptions as mandated by Pension Protection Act of 2006 including the phase out of the prior interest rate basis in 2013. |
Actual Returns on Assets Held by Our Pension Trusts | DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Direct investments $ 175 $ 258 $ 568 Derivatives 51 110 240 Total $ 226 $ 368 $ 808 |
Assumptions We Use in Estimating Health Care Benefit Costs | Assumptions We Use in Estimating Health Care Benefit Costs 2015 2014 U.S. CANADA U.S. CANADA Weighted health care cost trend rate assumed for next year 7.20% for Pre Medicare and 4.50% for HRA 5.00 % 6.30 % 5.60 % Rate to which cost trend rate is assumed to decline (ultimate trend rate) 4.50 % 4.30 % 4.50 % 4.30 % Year that the rate reaches the ultimate trend rate 2036 2028 2029 2028 |
Effect of a1 Percent Change in Health Care Costs | Effect of a 1 Percent Change in Health Care Costs AS OF DECEMBER 31, 2015 (DOLLAR AMOUNTS IN MILLIONS) 1% INCREASE 1% DECREASE Effect on total service and interest cost components less than $1 less than $(1) Effect on accumulated postretirement benefit obligation $ 10 $ (8 ) |
Qualified and Registered Pension Plans | |
Schedule of Allocation of Plan Assets | Assets within our qualified and registered pension plans in our U.S. and Canadian pension trusts were invested as follows: December 31, 2015 December 31, 2014 Fixed income 13.1 % 12.2 % Hedge funds 62.7 60.6 Private equity and related funds 23.0 25.3 Real estate and related funds 1.2 1.4 Common and preferred stock and equity index instruments 0.1 0.7 Accrued liabilities (0.1 ) (0.2 ) Total 100.0 % 100.0 % |
Non Registered Canadian Pension Plans | |
Schedule of Allocation of Plan Assets | Assets within our nonregistered plans that we are allowed to manage were invested as follows: December 31, 2015 December 31, 2014 Cash and cash equivalents 55.9 % 52.8 % Equities 44.1 47.2 Total 100.0 % 100.0 % |
Derivatives | Qualified and Registered Pension Plans | |
Schedule of Allocation of Plan Assets | This table shows the fair value of the derivatives held by our pension trusts — which fund our qualified and registered plans — at the end of the last two years. DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Equity index instruments $ 13 $ 13 Forward contracts (51 ) (32 ) Swaps 492 436 Total $ 454 $ 417 |
Derivatives, Aggregate Notional Amount | Qualified and Registered Pension Plans | |
Schedule of Allocation of Plan Assets | This table shows the aggregate notional amount of the derivatives held by our pension trusts — which fund our qualified and registered plans — at the end of the last two years. DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Equity index instruments $ 500 $ 361 Forward contracts 523 535 Swaps 2,058 1,824 Total $ 3,081 $ 2,720 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities | Accrued liabilities were comprised of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Wages, salaries and severance pay $ 150 $ 161 Pension and postretirement 44 47 Vacation pay 46 47 Taxes – Social Security and real and personal property 24 24 Interest 104 105 Customer rebates and volume discounts 46 46 Deferred income 52 75 Other 83 82 Total $ 549 $ 587 |
LINES OF CREDIT (Tables)
LINES OF CREDIT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Letters of Credit and Surety Bonds | The amounts of other letters of credit and surety bonds we have entered into as of the end of our last two years are included in the following table: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Letters of credit $ 47 $ 44 Surety bonds $ 113 $ 231 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Instrument [Line Items] | |
Long-Term Debt by Types and Interest Rates (Includes Current Portion) | Long-Term Debt by Types and Interest Rates (Includes Current Portion) DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, 6.95% debentures due 2017 $ 281 $ 281 7.00% debentures due 2018 62 62 7.375% notes due 2019 500 500 Variable rate term loan credit facility matures 2020 550 550 9.00% debentures due 2021 150 150 7.125% debentures due 2023 191 191 4.625% notes due 2023 500 500 8.50% debentures due 2025 300 300 7.95% debentures due 2025 136 136 7.70% debentures due 2026 150 150 7.35% debentures due 2026 62 62 7.85% debentures due 2026 100 100 6.95% debentures due 2027 300 300 7.375% debentures due 2032 1,250 1,250 6.875% debentures due 2033 275 275 Industrial revenue bonds, rates from 6.7% to 6.8%, due 2022 88 88 Other 1 1 4,896 4,896 Less unamortized discounts (5 ) (5 ) Total $ 4,891 $ 4,891 Portion due within one year $ — $ — |
Amounts of Long-Term Debt Due Annually for the Next Five Years and the Total Amount Due After 2020 | Amounts of Long-Term Debt Due Annually for the Next Five Years and the Total Amount Due After 2020 DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2015 Long-term debt maturities: 2016 $ — 2017 $ 281 2018 $ 62 2019 $ 500 2020 $ 550 Thereafter $ 3,503 |
FAIR VALUE OF FINANCIAL INSTR44
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Estimated fair values and carrying values of our long-term debt | The estimated fair values and carrying values of our long-term debt consisted of the following: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2015 DECEMBER 31, 2014 CARRYING VALUE FAIR VALUE (LEVEL 2) CARRYING VALUE FAIR VALUE (LEVEL 2) Long-term debt (including current maturities) $ 4,891 $ 5,620 $ 4,891 $ 5,922 |
LEGAL PROCEEDINGS, COMMITMENT45
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loss Contingencies [Line Items] | |
Changes in the Reserve for Environmental Remediation | Changes in the Reserve for Environmental Remediation DOLLAR AMOUNTS IN MILLIONS Reserve balance as of December 31, 2014 $ 29 Reserve charges and adjustments, net 15 Payments (7 ) Reserve balance as of December 31, 2015 $ 37 Total active sites as of December 31, 2015 38 |
Changes in the Reserve for Asset Retirement Obligations | Changes in the Reserve for Asset Retirement Obligations DOLLAR AMOUNTS IN MILLIONS Reserve balance as of December 31, 2014 $ 40 Reserve charges and adjustments, net 10 Payments (11 ) Other adjustments (1) (5 ) Reserve balance as of December 31, 2015 34 (1) Primarily related to a foreign currency remeasurement gain for our Canadian reforestation obligation. |
Our purchase obligations | Our purchase obligations as of December 31, 2015 were: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2015 2016 $ 84 2017 $ 33 2018 $ 8 2019 $ 2 2020 $ 2 Thereafter $ 17 |
Our rent expense | Our rent expense was: DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Rent expense $ 31 $ 32 $ 38 |
Our operating lease commitments | Our operating lease commitments as of December 31, 2015 were: DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, 2015 2016 $ 27 2017 $ 26 2018 $ 21 2019 $ 17 2020 $ 14 Thereafter $ 105 |
SHAREHOLDERS' INTEREST (Tables)
SHAREHOLDERS' INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reconciliation of Our Common Share Activity | Reconciliation of Our Common Share Activity IN THOUSANDS 2015 2014 2013 Outstanding at beginning of year 524,474 583,548 542,393 New issuance (Note 4) — — 33,350 Shares tendered (Note 3) — (58,813 ) — Stock options exercised 1,592 5,134 7,209 Issued for restricted stock units 365 451 462 Issued for performance shares 242 217 134 Repurchased (16,190 ) (6,063 ) — Outstanding at end of year 510,483 524,474 583,548 |
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: DOLLAR AMOUNTS IN MILLIONS PENSION OTHER POSTRETIREMENT BENEFITS 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 January 1, 2014 $ 354 $ (1,066 ) $ (19 ) $ (111 ) $ 150 $ 6 $ (686 ) Other comprehensive income (loss) before reclassifications (50 ) (1,008 ) 1 (6 ) (12 ) — (1,075 ) Income taxes — 369 — 1 7 — 377 Net other comprehensive income (loss) before reclassifications (50 ) (639 ) 1 (5 ) (5 ) — (698 ) Amounts reclassified from cumulative other comprehensive income (loss) (1) — 125 5 12 (161 ) — (19 ) Income taxes — (43 ) (2 ) (4 ) 59 — 10 Net amounts reclassified from cumulative other comprehensive income (loss) — 82 3 8 (102 ) — (9 ) Total other comprehensive income (loss) (50 ) (557 ) 4 3 (107 ) — (707 ) Beginning balance as of January 1, 2015 304 (1,623 ) (15 ) (108 ) 43 6 (1,393 ) Other comprehensive income (loss) before reclassifications (97 ) 184 2 37 (2 ) — 124 Income taxes — (52 ) — (12 ) — — (64 ) Net other comprehensive income (loss) before reclassifications (97 ) 132 2 25 (2 ) — 60 Amounts reclassified from cumulative other comprehensive income (loss) (1) — 182 4 10 (9 ) — 187 Income taxes — (63 ) (2 ) (4 ) 3 — (66 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 119 2 6 (6 ) — 121 Total other comprehensive income (loss) (97 ) 251 4 31 (8 ) — 181 Ending balance as of December 31, 2015 $ 207 $ (1,372 ) $ (11 ) $ (77 ) $ 35 $ 6 $ (1,212 ) (1) Actuarial losses and prior service credits (costs) are included in the computation of net periodic benefit costs (credits). See Note: 9 Pension and Other Postretirement Benefit Plans . |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Weighted Average Assumptions Used in Estimating Value of Stock Options Granted | Weighted Average Assumptions Used in Estimating Value of Stock Options Granted 2015 2014 2013 Expected volatility 25.92 % 31.71 % 38.00 % Expected dividends 3.28 % 2.92 % 2.23 % Expected term (in years) 4.77 4.97 4.97 Risk-free rate 1.54 % 1.57 % 0.92 % Weighted average grant-date fair value $ 5.85 $ 6.62 $ 8.40 |
Schedule of Stock Options Activity | Activity The following table shows our option unit activity for 2015 . OPTIONS (IN THOUSANDS) WEIGHTED AVERAGE EXERCISE PRICE WEIGHTED AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) AGGREGATE INTRINSIC VALUE (IN MILLIONS) Outstanding at December 31, 2014 12,285 $ 24.19 Granted 2,123 $ 35.40 Exercised (1,376) $ 24.46 Forfeited or expired (269) $ 31.34 Outstanding at December 31, 2015 (1) 12,763 $ 25.88 5.20 $ 65 Exercisable at December 31, 2015 8,442 $ 22.78 3.62 $ 62 (1) As of December 31, 2015, there were approximately 1,034 thousand stock options that had met the requisite service period and will be released as identified in the grant terms. |
Schedule of Restricted Stock Units Award Activity | Activity The following table shows our restricted stock unit activity for 2015 . STOCK UNITS (IN THOUSANDS) WEIGHTED AVERAGE GRANT-DATE FAIR VALUE Nonvested at December 31, 2014 1,227 $ 28.06 Granted 433 $ 35.41 Vested (489) $ 26.70 Forfeited (67) $ 31.11 Nonvested at December 31, 2015 (1) 1,104 $ 31.37 (1) As of December 31, 2015, there were approximately 232 thousand restricted stock units that had met the requisite service period and will be released as identified in the grant terms. |
Weighted Average Assumptions Used in Estimating the Value of Performance Share Units | Weighted Average Assumptions Used in Estimating the Value of Performance Share Units 2015 2014 2013 Performance period 1/1/2015 – 12/31/2017 1/1/2014 – 12/31/2015 1/1/2013 – 12/31/2014 Valuation date closing stock price $ 35.41 $ 30.16 $ 30.48 Expected dividends 3.26 % 2.91 % 2.23 % Risk-free rate 0.05% - 1.07% 0.03% - 0.79% 0.09% - 0.46% Volatility 16.33% - 20.89% 20.74% - 23.53% 22.09% - 29.57% Weighted average grant-date fair value $ 34.75 $ 30.62 $ 31.59 |
Schedule of Performance Share Units Activity | Activity The following table shows our performance share unit activity for 2015 . GRANTS (IN THOUSANDS) WEIGHTED AVERAGE GRANT-DATE FAIR VALUE Nonvested at December 31, 2014 890 $ 29.46 Granted at target 239 $ 34.75 Vested (395 ) $ 29.08 Forfeited (23 ) $ 31.34 Performance adjustment (31 ) $ 30.62 Nonvested at December 31, 2015 (1) 680 $ 31.42 (1) As of December 31, 2015, there were approximately 134 thousand performance share units that had met the requisite service period and will be released as identified in the grant terms. |
Weighted Average Assumptions Used to Re-measure Value of Stock Appreciation Rights | Weighted Average Assumptions Used to Re-measure Value of Stock Appreciation Rights at Year-End 2015 2014 2013 Expected volatility 22.10 % 18.20 % 24.02 % Expected dividends 4.20 % 3.21 % 2.81 % Expected term (in years) 1.94 1.32 1.16 Risk-free rate 0.99 % 0.45 % 0.19 % Weighted average fair value $ 6.96 $ 12.70 $ 8.68 |
Schedule of Stock Appreciation Rights Activity | Activity The following table shows our stock appreciation rights activity for 2015 . RIGHTS (IN THOUSANDS) WEIGHTED AVERAGE EXERCISE PRICE AVERAGE REMAINING CONTRACTUAL TERM (IN YEARS) AGGREGATE INTRINSIC VALUE (IN MILLIONS) Outstanding at December 31, 2014 417 $ 22.85 Granted 58 $ 35.40 Exercised (79 ) $ 23.91 Forfeited or expired (14 ) $ 31.01 Outstanding at December 31, 2015 382 $ 24.25 4.34 $ 14 Exercisable at December 31, 2015 289 $ 21.63 2.98 $ 11 |
CHARGES FOR RESTRUCTURING, CL48
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Items Included in Our Restructuring, Closure and Asset Impairment Charges | Items Included in Our Restructuring, Closure and Asset Impairment Charges DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Restructuring and closure charges: Termination benefits $ 4 $ 27 $ 1 Pension and postretirement charges — 3 — Other restructuring and closure costs 6 12 4 Charges for restructuring and closures 10 42 5 Impairment of long-lived assets 15 2 372 Total charges for restructuring, closures and impairments $ 25 $ 44 $ 377 |
Changes in accrued severance related to restructuring | Changes in accrued severance related to restructuring during 2015 were as follows: DOLLAR AMOUNTS IN MILLIONS Accrued severance as of December 31, 2014 $ 10 Charges 4 Payments (9 ) Accrued severance as of December 31, 2015 $ 5 |
OTHER OPERATING COSTS (INCOME49
OTHER OPERATING COSTS (INCOME), NET (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Various Income and Expense Items Included in Other Operating Costs (Income), Net | Various Income and Expense Items Included in Other Operating Costs (Income), Net DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Gain on postretirement plan amendment (Note 9) $ — $ (151 ) $ — Gain on disposition of nonstrategic assets (12 ) (27 ) (19 ) Foreign exchange losses, net 47 27 7 Land management income (37 ) (34 ) (28 ) Litigation expense, net 23 9 16 Plum Creek merger-related costs 14 — — Other, net (17 ) (25 ) (11 ) Total $ 18 $ (201 ) $ (35 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Domestic and Foreign Earnings (Loss) From Continuing Operations Before Income Taxes | Domestic and Foreign Earnings From Continuing Operations Before Income Taxes DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Domestic earnings $ 421 $ 970 $ 198 Foreign earnings 82 43 122 Total $ 503 $ 1,013 $ 320 |
Provision (Benefit) for Income Taxes From Continuing Operations | Provision (Benefit) for Income Taxes From Continuing Operations DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 Current: Federal $ 3 $ (26 ) $ (80 ) State (1 ) 12 (18 ) Foreign (5 ) 3 (21 ) (3 ) (11 ) (119 ) Deferred: Federal (30 ) 178 (79 ) State 2 6 6 Foreign 28 12 21 — 196 (52 ) Total income tax provision (benefit) $ (3 ) $ 185 $ (171 ) |
Effective Income Tax Rate Applicable to Continuing Operations | Effective Income Tax Rate Applicable to Continuing Operations DOLLAR AMOUNTS IN MILLIONS 2015 2014 2013 U.S. federal statutory income tax $ 176 $ 354 $ 112 State income taxes, net of federal tax benefit 1 14 7 REIT income not subject to federal income tax (158 ) (161 ) (101 ) REIT benefit from change to tax law (13 ) — — Foreign taxes — (2 ) (8 ) Provision for unrecognized tax benefits (7 ) (4 ) (193 ) Repatriation of Canadian earnings — — 21 Domestic production activities deduction — — (13 ) Other, net (2 ) (16 ) 4 Total income tax provision (benefit) $ (3 ) $ 185 $ (171 ) Effective income tax rate (0.5 )% 18.3 % (53.4 )% |
Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) Related to Continuing Operations | Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) Related to Continuing Operations DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Net noncurrent deferred tax asset 4 44 Net noncurrent deferred tax liability (86 ) (14 ) Net deferred tax asset (liability) $ (82 ) $ 30 |
Items Included in Our Deferred Income Tax Assets (Liabilities) | Items Included in Our Deferred Income Tax Assets (Liabilities) DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Postretirement benefits $ 80 $ 101 Pension 260 369 State tax credits 56 56 Net operating loss carryforwards 59 86 Cellulosic biofuel producers credit 78 100 Other 203 223 Gross deferred tax assets 736 935 Valuation allowance (72 ) (72 ) Net deferred tax assets 664 863 Property, plant and equipment (496 ) (523 ) Timber installment notes (180 ) (180 ) Other (70 ) (130 ) Deferred tax liabilities (746 ) (833 ) Net deferred tax asset (liability) $ (82 ) $ 30 |
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits | Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits DOLLAR AMOUNTS IN MILLIONS DECEMBER 31, DECEMBER 31, Balance at beginning of year $ 11 $ 26 Settlements (4 ) — Lapse of statute (1 ) (15 ) Balance at end of year $ 6 $ 11 |
GEOGRAPHIC AREAS (Tables)
GEOGRAPHIC AREAS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Sales by Geographic Area | Sales by Geographic Area FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31, 2014 (DOLLAR AMOUNTS IN MILLIONS) 2015 2014 2013 Sales to unaffiliated customers: U.S. $ 4,819 $ 4,889 $ 4,761 Japan 612 682 758 China 397 477 453 Canada 353 424 418 Europe 308 328 298 South America 82 87 80 Other foreign countries 511 516 486 Total $ 7,082 $ 7,403 $ 7,254 Export sales from the U.S.: Japan $ 558 $ 620 $ 676 China 333 416 411 Other 828 856 804 Total $ 1,719 $ 1,892 $ 1,891 |
Long-Lived Assets by Geographic Area | Long-Lived Assets by Geographic Area DOLLAR AMOUNTS IN MILLIONS December 31, December 31, December 31, Long-lived assets: U.S. (1) $ 8,187 $ 8,069 $ 8,116 Canada 460 579 652 Other foreign countries 654 676 670 Total $ 9,301 $ 9,324 $ 9,438 (1) Includes assets of discontinued operations in 2013. |
SELECTED QUARTERLY FINANCIAL 52
SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited) (Table) | 12 Months Ended |
Dec. 31, 2015 | |
Key Quarterly Financial Data for the Last Two Years | Key Quarterly Financial Data for the Last Two Years DOLLAR AMOUNTS IN MILLIONS EXCEPT PER-SHARE FIGURES First Quarter Second Quarter Third Quarter (1) Fourth Quarter Full Year 2015: Net sales $ 1,721 $ 1,807 $ 1,820 $ 1,734 $ 7,082 Operating income $ 200 $ 243 $ 259 $ 217 $ 919 Earnings from continuing operations before income taxes $ 120 $ 157 $ 175 $ 51 $ 503 Net earnings $ 101 $ 144 $ 191 $ 70 $ 506 Net earnings attributable to Weyerhaeuser common shareholders $ 90 $ 133 $ 180 $ 59 $ 462 Basic net earnings per share attributable to Weyerhaeuser common shareholders $ 0.17 $ 0.26 $ 0.35 $ 0.11 $ 0.89 Diluted net earnings per share attributable to Weyerhaeuser common shareholders $ 0.17 $ 0.26 $ 0.35 $ 0.11 $ 0.89 Dividends paid per share $ 0.29 $ 0.29 $ 0.31 $ 0.31 $ 1.20 Market prices - high/low $37.04 - $32.74 $33.19 - $31.06 $32.34 - $26.76 $32.72 - $26.73 $37.04 - $26.73 2014: Net sales $ 1,736 $ 1,964 $ 1,915 $ 1,788 $ 7,403 Operating income $ 308 $ 400 $ 318 $ 294 $ 1,320 Earnings from continuing operations before income taxes $ 234 $ 328 $ 237 $ 214 $ 1,013 Net earnings $ 194 $ 291 $ 1,164 $ 177 $ 1,826 Net earnings attributable to Weyerhaeuser common shareholders $ 183 $ 280 $ 1,153 $ 166 $ 1,782 Basic net earnings per share attributable to Weyerhaeuser common shareholders $ 0.31 $ 0.48 $ 2.17 $ 0.32 $ 3.20 Diluted net earnings per share attributable to Weyerhaeuser common shareholders $ 0.31 $ 0.47 $ 2.15 $ 0.31 $ 3.18 Dividends paid per share $ 0.22 $ 0.22 $ 0.29 $ 0.29 $ 1.02 Market prices - high/low $31.59 - $28.63 $33.26 - $27.48 $34.60 - $31.09 $36.88 - $31.61 $36.88 - $27.48 (1) Third Quarter 2014 includes a $972 million net gain on the Real Estate Divestiture recognized in 2014. See Note 3: Discontinued Operations for more information. |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Negative book cash balances | $ 0 | $ 0 |
BUSINESS SEGMENTS - Sales and C
BUSINESS SEGMENTS - Sales and Contribution (Charge) to Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | $ 7,082 | $ 7,403 | $ 7,254 |
Contribution (charge) to earnings | 850 | 2,374 | 805 |
Continuing operations | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Contribution (charge) to earnings | 850 | 1,357 | 689 |
Operating segments | Timberlands | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 1,350 | 1,497 | 1,343 |
Contribution (charge) to earnings | 549 | 613 | 470 |
Operating segments | Wood Products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 3,872 | 3,970 | 4,009 |
Contribution (charge) to earnings | 258 | 327 | 441 |
Operating segments | Cellulose Fibers | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 1,860 | 1,936 | 1,902 |
Contribution (charge) to earnings | 119 | 291 | 200 |
Operating intersegments | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 0 | 0 | 0 |
Operating intersegments | Timberlands | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 830 | 867 | 799 |
Operating intersegments | Wood Products | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 82 | 80 | 71 |
Operating intersegments | Cellulose Fibers | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 0 | 0 | 0 |
Intersegment eliminations | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | (912) | (947) | (870) |
Unallocated Items | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net sales | 0 | 0 | 0 |
Contribution (charge) to earnings | $ (76) | $ 126 | $ (422) |
BUSINESS SEGMENTS - Reconciliat
BUSINESS SEGMENTS - Reconciliation of Contribution to Earnings to Net Earnings Attributable to Weyerhaeuser (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Contribution (Charge) to Earnings From Segment to Net Earnings [Line Items] | |||
Contribution (charge) to earnings | $ 850 | $ 2,374 | $ 805 |
Interest expense, net of capitalized interest (continuing and discontinued operations) | 347 | 347 | 371 |
Income before income taxes (continuing and discontinued operations) | 503 | 2,027 | 434 |
Income taxes (continuing and discontinued operations) | 3 | (201) | 129 |
Net earnings attributable to Weyerhaeuser | 506 | 1,826 | 563 |
Continuing operations | |||
Reconciliation of Contribution (Charge) to Earnings From Segment to Net Earnings [Line Items] | |||
Contribution (charge) to earnings | 850 | 1,357 | 689 |
Discontinued operations | |||
Reconciliation of Contribution (Charge) to Earnings From Segment to Net Earnings [Line Items] | |||
Contribution (charge) to earnings | $ 0 | $ 1,017 | $ 116 |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | $ 479 | $ 493 | $ 458 |
Net pension and postretirement cost (credit)(1) | 42 | 0 | 96 |
Charges for restructuring, closures and impairments(2) | 25 | 44 | 377 |
Earnings (loss) from equity affiliates | (105) | (1) | 1 |
Capital expenditures | 483 | 391 | 283 |
Investments in and advances to equity affiliates and unconsolidated entities | 74 | 188 | 190 |
Total assets(3) | 12,486 | 13,265 | 14,372 |
Operating segments | Timberlands | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 209 | 207 | 166 |
Net pension and postretirement cost (credit)(1) | 9 | 10 | 10 |
Charges for restructuring, closures and impairments(2) | 0 | 1 | 2 |
Earnings (loss) from equity affiliates | 0 | 0 | 0 |
Capital expenditures | 75 | 74 | 73 |
Investments in and advances to equity affiliates and unconsolidated entities | 0 | 0 | 0 |
Total assets(3) | 7,260 | 7,327 | 7,578 |
Operating segments | Wood Products | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 106 | 119 | 123 |
Net pension and postretirement cost (credit)(1) | 27 | 24 | 28 |
Charges for restructuring, closures and impairments(2) | 10 | 2 | 13 |
Earnings (loss) from equity affiliates | 0 | 0 | 0 |
Capital expenditures | 287 | 190 | 113 |
Investments in and advances to equity affiliates and unconsolidated entities | 0 | 0 | 0 |
Total assets(3) | 1,541 | 1,430 | 1,326 |
Operating segments | Cellulose Fibers | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 154 | 155 | 156 |
Net pension and postretirement cost (credit)(1) | 17 | 11 | 18 |
Charges for restructuring, closures and impairments(2) | 0 | 0 | 0 |
Earnings (loss) from equity affiliates | (105) | (1) | 3 |
Capital expenditures | 118 | 123 | 92 |
Investments in and advances to equity affiliates and unconsolidated entities | 74 | 188 | 190 |
Total assets(3) | 1,984 | 2,214 | 2,299 |
Unallocated Items | |||
Segment Reporting, Other Significant Reconciling Item [Line Items] | |||
Depreciation, depletion and amortization | 10 | 12 | 13 |
Net pension and postretirement cost (credit)(1) | (11) | (45) | 40 |
Charges for restructuring, closures and impairments(2) | 15 | 41 | 362 |
Earnings (loss) from equity affiliates | 0 | 0 | (2) |
Capital expenditures | 3 | 4 | 5 |
Investments in and advances to equity affiliates and unconsolidated entities | 0 | 0 | 0 |
Total assets(3) | $ 1,701 | $ 2,294 | $ 3,169 |
DISCONTINUED OPERATIONS - Compo
DISCONTINUED OPERATIONS - Components of the net gain on divestiture (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Common shares tendered (58,813,151 shares at $33.22 per share) | $ 0 | $ 1,954 | $ 0 | |
Cash | $ 0 | $ 707 | $ 0 | |
Common stock in exchange for the distribution of shares of Weyerhaeuser Real Estate Company (WRECO) to our shareholders | (59,000,000) | 0 | (58,813,151) | 0 |
Share price of common shares tendered | $ 33.22 | |||
Real Estate Divestiture | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Common shares tendered (58,813,151 shares at $33.22 per share) | $ 1,954 | |||
Cash | $ 707 | 707 | ||
Proceeds | 2,661 | |||
Net book value of contributed assets | 1,671 | |||
Transaction costs, net of reimbursement | 18 | |||
Net book value of contributed assets and transaction costs, net of reimbursement | $ 1,689 |
DISCONTINUED OPERATIONS - Sales
DISCONTINUED OPERATIONS - Sales and Net Earnings from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales from discontinued operations | $ 573 | $ 1,275 | ||
Income from discontinued operations | 42 | 114 | ||
Income taxes | (16) | (42) | ||
Net income from operations | 26 | 72 | ||
Gain on WRECO divestiture | $ 972 | 972 | 0 | |
Net earnings from discontinued operations | $ 0 | $ 998 | $ 72 |
DISCONTINUED OPERATIONS - Carry
DISCONTINUED OPERATIONS - Carrying Value of Assets and Liabilities of Discontinued Operations (Details) $ in Millions | Dec. 31, 2013USD ($) |
Assets | |
Cash and cash equivalents | $ 5 |
Receivables, less discounts and allowances | 51 |
Prepaid expenses | 11 |
Total current assets | 67 |
Property and equipment, net | 15 |
Real estate in process of development and for sale | 851 |
Land being processed for development | 596 |
Investments in and advances to equity affiliates | 21 |
Deferred tax assets | 136 |
Other assets | 96 |
Total noncurrent assets | 1,715 |
Total assets | 1,782 |
Liabilities | |
Accounts payable | 41 |
Accrued liabilities | 113 |
Total current liabilities | 154 |
Long-term debt (nonrecourse to the company) held by variable interest entities | 5 |
Other liabilities | 27 |
Total noncurrent liabilities | 32 |
Total liabilities | 186 |
Noncontrolling interests | $ 34 |
DISCONTINUED OPERATIONS - Addit
DISCONTINUED OPERATIONS - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
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 (WRECO) to our shareholders | 59,000,000 | 0 | 58,813,151 | 0 | |
Cash | $ 0 | $ 707 | $ 0 | ||
Share price of common shares tendered | $ 33.22 | ||||
Real Estate Divestiture | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Date of disposition | Jul. 7, 2014 | ||||
Unsecured and unsubordinated senior debt obligations issued by WRECO | $ 900 | ||||
Net proceeds from issuance of debt | $ 870 | ||||
Proceeds utilized by WRECO to repay intercompany debt and interest to Weyerhaeuser Company | 744 | ||||
Cash on hand | 5 | ||||
Adjustment amount payable pursuant to the terms of the transaction agreement | 32 | ||||
Cash | $ 707 | $ 707 |
ACQUISITIONS - Summarized Unaud
ACQUISITIONS - Summarized Unaudited Pro Forma Information (Details) - Longview Timber LLC [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2013USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net sales | $ | $ 7,371 |
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders | $ | $ 485 |
Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, basic | $ / shares | $ 0.84 |
Net earnings from continuing operations per share attributable to Weyerhaeuser common shareholders, diluted | $ / shares | $ 0.83 |
ACQUISITIONS Estimated Fair Val
ACQUISITIONS Estimated Fair Values of Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 23, 2013 |
Business Acquisition [Line Items] | ||||
Timber and timberlands | $ 6,480 | $ 6,530 | ||
Previously Reported | Longview Timber LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 46 | |||
Property and equipment | 39 | |||
Timber and timberlands | 2,654 | |||
Other assets | 2 | |||
Total assets acquired | 2,741 | |||
Current liabilities | 10 | |||
Long-term debt | 1,122 | |||
Other liabilities | 5 | |||
Total liabilities assumed | 1,137 | |||
Net assets acquired | $ 1,604 | |||
Measurement Period Adjustments | Longview Timber LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets | $ 0 | |||
Property and equipment | 1 | |||
Timber and timberlands | 2 | |||
Other assets | 0 | |||
Total assets acquired | 3 | |||
Current liabilities | 0 | |||
Long-term debt | 0 | |||
Other liabilities | 3 | |||
Total liabilities assumed | 3 | |||
Net assets acquired | 0 | |||
Final | Longview Timber LLC [Member] | ||||
Business Acquisition [Line Items] | ||||
Current assets | 46 | |||
Property and equipment | 40 | |||
Timber and timberlands | 2,656 | |||
Other assets | 2 | |||
Total assets acquired | 2,744 | |||
Current liabilities | 10 | |||
Long-term debt | 1,122 | |||
Other liabilities | 8 | |||
Total liabilities assumed | 1,140 | |||
Net assets acquired | $ 1,604 |
ACQUISITIONS - Additional Infor
ACQUISITIONS - Additional Information (Details) $ / shares in Units, shares in Thousands, $ in Millions | Nov. 30, 2015shares | Nov. 06, 2015$ / shares | Jul. 08, 2013USD ($)$ / sharesshares | Jun. 24, 2013USD ($)$ / sharesshares | Sep. 30, 2013USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)shares | Jul. 23, 2013aRate |
Business Acquisition [Line Items] | |||||||||
Acquisition of Longview Timber LLC, net of cash acquired | $ 0 | $ 0 | $ 1,581 | ||||||
Acquisition of Longview Timber LLC, debt assumed | $ 0 | $ 0 | $ 1,070 | ||||||
New shares issued | shares | 0 | 0 | 33,350 | ||||||
Net proceeds from issuance of common shares | $ 0 | $ 0 | $ 897 | ||||||
Fees related to bridge loan | $ 11 | ||||||||
Common shares: | |||||||||
Business Acquisition [Line Items] | |||||||||
New shares issued | shares | 4,400 | 29,000 | |||||||
Valuation date closing stock price | $ / shares | $ 27.75 | $ 27.75 | |||||||
Net proceeds from issuance of common shares | $ 116 | $ 781 | |||||||
6.375 percent Mandatory Convertible Preference Shares, Series A | |||||||||
Business Acquisition [Line Items] | |||||||||
New shares issued | shares | 13,800 | ||||||||
Preference shares, par value | $ / shares | $ 1 | $ 1 | $ 1 | ||||||
Preference shares, liquidation preference | $ / shares | $ 50 | $ 50 | $ 50 | ||||||
Net proceeds from issuance of preference shares | $ 669 | ||||||||
Plum Creek Timber Company, Inc. [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Equity shares issued or issuable conversion ratio | $ / shares | $ 1.60 | ||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 278,000 | ||||||||
Longview Timber LLC [Member] | |||||||||
Business Acquisition [Line Items] | |||||||||
Acquisition of Longview Timber LLC, effective date of acquisition | Jul. 23, 2013 | ||||||||
Acquisition of Longview Timber LLC, equity interests purchased | Rate | 100.00% | ||||||||
Acquisition of Longview Timber LLC, net of cash acquired | $ 1,580 | ||||||||
Acquisition of Longview Timber LLC, debt assumed | 1,070 | ||||||||
Acquisition of Longview Timber LLC, aggregate purchase price | $ 2,650 | ||||||||
Acquisition of Longview Timber LLC, timberlands acquired, acres | a | 645,000 |
NET EARNINGS PER SHARE - Potent
NET EARNINGS PER SHARE - Potential Shares Not Included in the Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 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 | 5,016 | 0 | 4,618 |
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 | 155 | 0 | 0 |
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 | 25,307 | 24,988 | 24,865 |
NET EARNINGS PER SHARE - Additi
NET EARNINGS PER SHARE - Additional Information (Details) - $ / shares shares in Thousands | Jun. 24, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Basic earnings per share attributable to Weyerhaeuser common shareholders | $ 0.11 | $ 0.35 | $ 0.26 | $ 0.17 | $ 0.32 | $ 2.17 | $ 0.48 | $ 0.31 | $ 0.89 | $ 3.20 | $ 0.95 | |
Diluted earnings per share attributable to Weyerhaeuser common shareholders | $ 0.11 | $ 0.35 | $ 0.26 | $ 0.17 | $ 0.31 | $ 2.15 | $ 0.47 | $ 0.31 | $ 0.89 | $ 3.18 | $ 0.95 | |
New shares issued | 0 | 0 | 33,350 | |||||||||
6.375 percent Mandatory Convertible Preference Shares, Series A | ||||||||||||
New shares issued | 13,800 |
INVENTORIES - Inventories as of
INVENTORIES - Inventories as of the End of Our Last Two Years (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Total | $ 568 | $ 595 |
Logs and chips | ||
Inventory [Line Items] | ||
LIFO inventories | 15 | 9 |
FIFO or moving average cost inventories | 38 | 38 |
Lumber, plywood and panels | ||
Inventory [Line Items] | ||
LIFO inventories | 48 | 55 |
Lumber, plywood, panels and engineered wood products | ||
Inventory [Line Items] | ||
FIFO or moving average cost inventories | 75 | 80 |
Pulp and paperboard | ||
Inventory [Line Items] | ||
LIFO inventories | 111 | 122 |
FIFO or moving average cost inventories | 32 | 35 |
Other products | ||
Inventory [Line Items] | ||
LIFO inventories | 11 | 11 |
FIFO or moving average cost inventories | 90 | 96 |
Materials and supplies | ||
Inventory [Line Items] | ||
FIFO or moving average cost inventories | $ 148 | $ 149 |
INVENTORIES - Additional Inform
INVENTORIES - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Increase in inventory amount if FIFO would have been used | $ 124 | $ 120 |
PROPERTY AND EQUIPMENT - Carryi
PROPERTY AND EQUIPMENT - Carrying Value of Property and Equipment and Estimated Service Lives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | ||
Land | $ 121 | $ 127 |
Buildings and improvements | 1,208 | 1,220 |
Machinery and equipment | 6,675 | 6,706 |
Roads | 624 | 609 |
Other | 252 | 285 |
Total cost | 8,880 | 8,947 |
Allowance for depreciation and amortization | (6,294) | (6,324) |
Property and equipment, net | $ 2,586 | $ 2,623 |
Minimum | Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 10 years | |
Minimum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 2 years | |
Minimum | Roads | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 10 years | |
Minimum | Other | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 3 years | |
Maximum | Buildings and Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 40 years | |
Maximum | Machinery and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 25 years | |
Maximum | Roads | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 20 years | |
Maximum | Other | ||
Property, Plant and Equipment [Line Items] | ||
Estimated service lives | 10 years |
PROPERTY AND EQUIPMENT - Additi
PROPERTY AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense, excluding discontinued operations | $ 314 | $ 332 | $ 332 |
Buildings and Improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated service lives | 10 years | ||
Buildings and Improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated service lives | 40 years | ||
Machinery and Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated service lives | 2 years | ||
Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated service lives | 25 years | ||
Timberlands | Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated service lives | 15 years | ||
Wood products manufacturing facilities | Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated service lives | 20 years | ||
Pulp mills | Machinery and Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Estimated service lives | 25 years |
EQUITY AFFILIATES - Assets and
EQUITY AFFILIATES - Assets and Liabilities of Equity Affiliates (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Current assets | $ 89 | $ 123 |
Noncurrent assets | 101 | 413 |
Current liabilities | 25 | 30 |
Noncurrent liabilities | $ 6 | $ 109 |
EQUITY AFFILIATES - Operating R
EQUITY AFFILIATES - Operating Results of Equity Affiliates (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | |||
Net sales | $ 462 | $ 501 | $ 534 |
Operating income (loss) | (311) | (2) | 3 |
Net income (loss) | $ (197) | $ 0 | $ 3 |
EQUITY AFFILIATES - Additional
EQUITY AFFILIATES - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Other than Temporary Impairment | $ 84,000,000 | |||
Equity method investment other than temporary impairment, tax benefit | 28,000,000 | |||
Equity method investment other than temporary impairment, net of tax benefit | $ 56,000,000 | |||
North Pacific Paper Corporation (NORPAC) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity affiliate, ownership | 50.00% | 50.00% | ||
Amounts paid to Weyerhaeuser by NORPAC for goods and services | $ 197,000,000 | $ 195,000,000 | $ 203,000,000 | |
Payable balance to equity affiliate | $ 46,000,000 | $ 46,000,000 | 75,000,000 | |
Catchlight Energy | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity affiliate, proceeds from dissolution | $ 0 | |||
Liaison Technologies Inc | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Pretax gain on partial sale of equity affiliate investment | $ 10,000,000 | |||
Minimum | North Pacific Paper Corporation (NORPAC) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Fair Value Inputs, Discount Rate | 10.50% | |||
Maximum | North Pacific Paper Corporation (NORPAC) | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Fair Value Inputs, Discount Rate | 14.00% |
PENSION AND OTHER POSTRETIREM73
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Changes in Projected Benefit Obligations of Our Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actuarial (gains) losses | $ (343) | ||
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation, beginning | 6,698 | $ 5,834 | |
Service cost | 57 | 53 | $ 64 |
Interest cost | 265 | 271 | 244 |
Plan participants’ contributions | 0 | 0 | |
Actuarial (gains) losses | (309) | 1,006 | |
Foreign currency translation | (159) | (87) | |
Benefits paid (includes lump sum settlements) | (342) | (391) | |
Plan amendments and other | (1) | 1 | |
Special/contractual termination benefits | 0 | 7 | |
Plan transfer/Acquisitions | 2 | 4 | |
Projected benefit obligation, ending | 6,211 | 6,698 | 5,834 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation, beginning | 303 | 321 | |
Service cost | 0 | 1 | 1 |
Interest cost | 9 | 10 | 12 |
Plan participants’ contributions | 9 | 13 | |
Actuarial (gains) losses | (34) | 4 | |
Foreign currency translation | (15) | (7) | |
Benefits paid (includes lump sum settlements) | (32) | (44) | |
Plan amendments and other | 0 | 2 | |
Special/contractual termination benefits | 0 | 0 | |
Plan transfer/Acquisitions | 0 | 3 | |
Projected benefit obligation, ending | $ 240 | $ 303 | $ 321 |
PENSION AND OTHER POSTRETIREM74
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Changes in Fair Value of Plan Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Actual return on plan assets | $ 226 | $ 368 | $ 808 | |
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets, beginning | 5,643 | 5,614 | ||
Adjustment for final fair value of plan assets | $ 57 | 57 | 53 | |
Actual return on plan assets | 226 | 368 | ||
Foreign currency translation | (155) | (75) | ||
Employer contributions and benefit payments | 60 | 70 | ||
Plan participants’ contributions | 0 | 0 | ||
Plan transfer/Acquisitions | 2 | 4 | ||
Benefits paid (includes lump sum settlements) | (342) | (391) | ||
Fair value of plan assets, ending | 5,491 | 5,643 | 5,614 | |
Other Postretirement Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets, beginning | 0 | 0 | ||
Adjustment for final fair value of plan assets | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Foreign currency translation | 0 | 0 | ||
Employer contributions and benefit payments | 23 | 31 | ||
Plan participants’ contributions | 9 | 13 | ||
Plan transfer/Acquisitions | 0 | 0 | ||
Benefits paid (includes lump sum settlements) | (32) | (44) | ||
Fair value of plan assets, ending | $ 0 | $ 0 | $ 0 |
PENSION AND OTHER POSTRETIREM75
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Funded Status of Our Pension and Other Postretirement Benefit Plans (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Current liabilities | $ (44) | $ (47) |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 70 | 8 |
Current liabilities | (21) | (21) |
Noncurrent liabilities | (769) | (1,042) |
Funded status | (720) | (1,055) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (22) | (26) |
Noncurrent liabilities | (218) | (277) |
Funded status | $ (240) | $ (303) |
PENSION AND OTHER POSTRETIREM76
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Assets Within Our Qualified and Registered Pension Plans (Details) - Qualified and Registered Pension Plans | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 100.00% | 100.00% |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 13.10% | 12.20% |
Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 62.70% | 60.60% |
Private equity and related funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 23.00% | 25.30% |
Real estate and related funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 1.20% | 1.40% |
Common and preferred stock and equity index instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 0.10% | 0.70% |
Accrued liabilities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | (0.10%) | (0.20%) |
PENSION AND OTHER POSTRETIREM77
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Assets Within Our Nonregisted Pension Plans (Details) - Non Registered Canadian Pension Plans | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 100.00% | 100.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 55.90% | 52.80% |
Equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assets invested in pension plan, allocation percentage | 44.10% | 47.20% |
PENSION AND OTHER POSTRETIREM78
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Pension Trusts' Net Investments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 4,722 | $ 4,840 | $ 4,935 |
Fixed income instruments | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 3 | 3 |
Hedge funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,388 | 3,333 | 3,225 |
Private equity and related funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,267 | 1,422 | 1,606 |
Real estate and related funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 67 | 82 | 101 |
Qualified and Registered Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,481 | 5,630 | |
Qualified and Registered Pension Plans | Fixed income instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 714 | 685 | |
Qualified and Registered Pension Plans | Fixed income instruments | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 668 | 646 | |
Qualified and Registered Pension Plans | Fixed income instruments | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46 | 36 | |
Qualified and Registered Pension Plans | Fixed income instruments | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 3 | |
Qualified and Registered Pension Plans | Hedge funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,438 | 3,414 | |
Qualified and Registered Pension Plans | Hedge funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 87 | 103 | |
Qualified and Registered Pension Plans | Hedge funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (37) | (22) | |
Qualified and Registered Pension Plans | Hedge funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,388 | 3,333 | |
Qualified and Registered Pension Plans | Private equity and related funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,267 | 1,425 | |
Qualified and Registered Pension Plans | Private equity and related funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Registered Pension Plans | Private equity and related funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 3 | |
Qualified and Registered Pension Plans | Private equity and related funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,267 | 1,422 | |
Qualified and Registered Pension Plans | Real estate and related funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 67 | 82 | |
Qualified and Registered Pension Plans | Real estate and related funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Registered Pension Plans | Real estate and related funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Registered Pension Plans | Real estate and related funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 67 | 82 | |
Qualified and Registered Pension Plans | Common and preferred stock and equity index instruments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 37 | |
Qualified and Registered Pension Plans | Common and preferred stock and equity index instruments | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 25 | |
Qualified and Registered Pension Plans | Common and preferred stock and equity index instruments | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3 | 12 | |
Qualified and Registered Pension Plans | Common and preferred stock and equity index instruments | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified and Registered Pension Plans | Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,489 | 5,643 | |
Qualified and Registered Pension Plans | Investments | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 755 | 774 | |
Qualified and Registered Pension Plans | Investments | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 12 | 29 | |
Qualified and Registered Pension Plans | Investments | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4,722 | 4,840 | |
Qualified and Registered Pension Plans | Accrued liabilities, net | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | (8) | (13) | |
Non Registered Canadian Pension Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 13 | |
Non Registered Canadian Pension Plans | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10 | 13 | |
Non Registered Canadian Pension Plans | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non Registered Canadian Pension Plans | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non Registered Canadian Pension Plans | Cash | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 7 | |
Non Registered Canadian Pension Plans | Cash | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6 | 7 | |
Non Registered Canadian Pension Plans | Cash | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non Registered Canadian Pension Plans | Cash | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non Registered Canadian Pension Plans | Investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 6 | |
Non Registered Canadian Pension Plans | Investments | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 4 | 6 | |
Non Registered Canadian Pension Plans | Investments | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Non Registered Canadian Pension Plans | Investments | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,491 | $ 5,643 | $ 5,614 |
Pension | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 4,700 |
PENSION AND OTHER POSTRETIREM79
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Reconciliation of Pension Plan Assets (Details) - Fair Value, Inputs, Level 3 - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, beginning | $ 4,840 | $ 4,935 |
Net realized gains (losses) | 253 | 322 |
Net change in unrealized appreciation (depreciation) | (81) | (58) |
Purchases | 588 | 723 |
Sales | (841) | (927) |
Issuances | 47 | 52 |
Settlements | (84) | (132) |
Transfers, Out(1) | 0 | (75) |
Fair value of plan assets, ending | 4,722 | 4,840 |
Hedge funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, beginning | 3,333 | 3,225 |
Net realized gains (losses) | 143 | 186 |
Net change in unrealized appreciation (depreciation) | 47 | 76 |
Purchases | 441 | 541 |
Sales | (539) | (540) |
Issuances | 47 | 52 |
Settlements | (84) | (132) |
Transfers, Out(1) | 0 | (75) |
Fair value of plan assets, ending | 3,388 | 3,333 |
Private equity and related funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, beginning | 1,422 | 1,606 |
Net realized gains (losses) | 100 | 128 |
Net change in unrealized appreciation (depreciation) | (117) | (130) |
Purchases | 141 | 177 |
Sales | (279) | (359) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers, Out(1) | 0 | 0 |
Fair value of plan assets, ending | 1,267 | 1,422 |
Real estate and related funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, beginning | 82 | 101 |
Net realized gains (losses) | 9 | 8 |
Net change in unrealized appreciation (depreciation) | (11) | (4) |
Purchases | 6 | 5 |
Sales | (19) | (28) |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers, Out(1) | 0 | 0 |
Fair value of plan assets, ending | 67 | 82 |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets, beginning | 3 | 3 |
Net realized gains (losses) | 1 | 0 |
Net change in unrealized appreciation (depreciation) | 0 | 0 |
Purchases | 0 | 0 |
Sales | (4) | 0 |
Issuances | 0 | 0 |
Settlements | 0 | 0 |
Transfers, Out(1) | 0 | 0 |
Fair value of plan assets, ending | $ 0 | $ 3 |
PENSION AND OTHER POSTRETIREM80
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Fair Value of Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Derivatives, Fair Value, Net | $ 454 | $ 417 |
Equity index instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Derivatives, Fair Value, Net | 13 | 13 |
Forward contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Derivatives, Fair Value, Net | (51) | (32) |
Swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Derivatives, Fair Value, Net | $ 492 | $ 436 |
PENSION AND OTHER POSTRETIREM81
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Aggregate Notional Amount of Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Notional Amount of Derivatives | $ 3,081 | $ 2,720 |
Equity index instruments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Notional Amount of Derivatives | 500 | 361 |
Forward contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Notional Amount of Derivatives | 523 | 535 |
Swaps | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Notional Amount of Derivatives | $ 2,058 | $ 1,824 |
PENSION AND OTHER POSTRETIREM82
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Net Periodic Benefit Cost (Credit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior service cost (credit)(2) | $ 0 | $ (151) | $ 0 |
Recognition of curtailments, settlements and special termination benefits due to closures, restructuring or divestitures(1) | 0 | 3 | 0 |
Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 57 | 53 | 64 |
Interest cost | 265 | 271 | 244 |
Expected return on plan assets | (476) | (467) | (439) |
Amortization of actuarial loss | 182 | 125 | 221 |
Amortization of prior service cost (credit)(2) | 4 | 5 | 7 |
Recognition of curtailments, settlements and special termination benefits due to closures, restructuring or divestitures(1) | 0 | 9 | 0 |
Other | 0 | 0 | 0 |
Net periodic benefit cost (credit) | 32 | (4) | 97 |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0 | 1 | 1 |
Interest cost | 9 | 10 | 12 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of actuarial loss | 10 | 12 | 14 |
Amortization of prior service cost (credit)(2) | (9) | (161) | (23) |
Recognition of curtailments, settlements and special termination benefits due to closures, restructuring or divestitures(1) | 0 | 0 | 0 |
Other | 0 | (4) | 0 |
Net periodic benefit cost (credit) | $ 10 | (142) | 4 |
Gain on postretirement plan amendment | Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of prior service cost (credit)(2) | (151) | ||
Real Estate Divestiture | Pension | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 2 | $ 4 |
PENSION AND OTHER POSTRETIREM83
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Estimated Amortization from Cumulative Other Comprehensive Loss in 2016 (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | $ 161 |
Prior service cost (credit) | (4) |
Net effect cost | 157 |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 152 |
Prior service cost (credit) | 4 |
Net effect cost | 156 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Net actuarial loss | 9 |
Prior service cost (credit) | (8) |
Net effect cost | $ 1 |
PENSION AND OTHER POSTRETIREM84
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Estimated Projected Benefit Payments for the Next 10 Years (Details) $ in Millions | Dec. 31, 2015USD ($) |
Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Future Benefit Payments in 2016 | $ 334 |
Expected Future Benefit Payments in 2017 | 340 |
Expected Future Benefit Payments in 2018 | 347 |
Expected Future Benefit Payments in 2019 | 354 |
Expected Future Benefit Payments in 2020 | 360 |
Expected Future Benefit Payments in 2021-2025 | 1,858 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Future Benefit Payments in 2016 | 22 |
Expected Future Benefit Payments in 2017 | 21 |
Expected Future Benefit Payments in 2018 | 20 |
Expected Future Benefit Payments in 2019 | 19 |
Expected Future Benefit Payments in 2020 | 19 |
Expected Future Benefit Payments in 2021-2025 | $ 81 |
PENSION AND OTHER POSTRETIREM85
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Discount Rates and Rates of Compensation Increase Used in Estimating Our Pension and Other Postretirement Benefit Obligation (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
United States Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | 4.50% | 4.10% |
United States Other Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | 4.00% | 3.60% |
Canadian Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | 4.00% | 3.90% |
Canadian Other Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rates | 3.90% | 3.80% |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Election of lump sum or installment distributions (US salaried and nonqualified plans only) | 60.00% | 60.00% |
Salaried | United States Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase, current year | 2.00% | 2.50% |
Rate of compensation increase, thereafter | 13.00% | 3.50% |
Salaried | Canadian Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase, current year | 2.50% | 2.50% |
Rate of compensation increase, thereafter | 3.50% | 3.50% |
Hourly | United States Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 3.00% | |
Hourly | Canadian Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 3.25% | 3.25% |
Minimum | Hourly | United States Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 2.30% | |
Maximum | Hourly | United States Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 13.00% |
PENSION AND OTHER POSTRETIREM86
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Rates Used to Estimate Our Net Periodic Benefit Costs (Details) | 6 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
United States Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rates | 4.40% | 4.90% | 4.10% | 3.70% | |
United States Pension Plans | Salaried | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Rate of compensation increase, current year | 2.50% | 2.50% | 2.50% | ||
Rate of compensation increase, thereafter | 3.50% | 3.50% | 3.50% | ||
United States Pension Plans | Hourly | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Rate of compensation increase | 3.00% | 3.00% | 3.00% | ||
United States Other Postretirement Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rates | 3.60% | 4.00% | 3.00% | ||
Canadian Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rates | 3.90% | 4.70% | 4.10% | ||
Canadian Pension Plans | Salaried | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Rate of compensation increase, current year | 2.50% | 2.50% | 2.50% | ||
Rate of compensation increase, thereafter | 3.50% | 3.50% | 3.50% | ||
Canadian Pension Plans | Hourly | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Rate of compensation increase | 3.25% | 3.25% | 3.25% | ||
Canadian Other Postretirement Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Discount rates | 3.80% | 4.60% | 4.00% | ||
Qualified and Registered Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected return on plan assets | 9.00% | 9.00% | 9.00% | ||
Non Registered Canadian Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Expected return on plan assets | 3.50% | 3.50% | 3.50% | ||
Pension | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Election of lump sum distributions (U.S. salaried and nonqualified plans only) | 60.00% | 60.00% | 56.00% |
PENSION AND OTHER POSTRETIREM87
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Actual Returns on Assets Held by Our Pension Trusts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | $ 226 | $ 368 | $ 808 |
Direct investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | 175 | 258 | 568 |
Derivatives | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual return on plan assets | $ 51 | $ 110 | $ 240 |
PENSION AND OTHER POSTRETIREM88
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Assumptions We Use in Estimating Health Care Benefit Costs (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted health care cost trend rate assumed for next year | 6.30% | |
Rate to which cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2,036 | 2,029 |
U.S. | Pre Medicare [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted health care cost trend rate assumed for next year | 7.20% | |
U.S. | Health Reimbursement Account [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted health care cost trend rate assumed for next year | 4.50% | |
Canada | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted health care cost trend rate assumed for next year | 5.00% | 5.60% |
Rate to which cost trend rate is assumed to decline (ultimate trend rate) | 4.30% | 4.30% |
Year that the rate reaches the ultimate trend rate | 2,028 | 2,028 |
PENSION AND OTHER POSTRETIREM89
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Effect of a 1 Percent Change in Health Care Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect on total service and interest cost components on 1 percent increase in health care costs (less than) | $ 1 |
Effect on total service and interest cost components on 1 percent decrease in health care costs (less than) | (1) |
Effect on accumulated postretirement benefit obligation on 1 percent increase in health care costs | 10 |
Effect on accumulated postretirement benefit obligation on 1 percent decrease in health care costs | $ (8) |
PENSION AND OTHER POSTRETIREM90
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 07, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined Benefit Plan, Actuarial Gain (Loss) | $ 343 | |||||||
Types Of Plans We Sponsor | The plans we sponsor in the U.S. and Canada differ according to each country’s requirements. In the U.S., our pension plans are: • qualified — plans that qualify under the Internal Revenue Code; and • nonqualified — plans for select employees that provide additional benefits not qualified under the Internal Revenue Code. In Canada, our pension plans are: • registered — plans that are registered under the Income Tax Act and applicable provincial pension acts; and • nonregistered — plans for select employees that provide additional benefits that may not be registered under the Income Tax Act or provincial pension acts. We also offer retiree medical and life insurance plans in the U.S. and Canada. These plans are referred to as other postretirement benefit plans in the following disclosures. | |||||||
Postretirement obligation increase | $ 45 | |||||||
Amortization of prior service cost (credit)(2) | $ 0 | $ (151) | $ 0 | |||||
Charge for curtailments and special termination benefits | 0 | (3) | 0 | |||||
Total equity decreased for changes in cumulative other comprehensive loss | 60 | (698) | ||||||
Pension plans with accumulated benefit obligations greater than plan assets, projected benefit obligations | 6,600 | 5,500 | 6,600 | |||||
Pension plans with accumulated benefit obligations greater than plan assets, accumulated benefit obligations | 6,500 | 5,400 | 6,500 | |||||
Pension plans with accumulated benefit obligations greater than plan assets, fair value of assets | 5,600 | 4,700 | 5,600 | |||||
Accumulated benefit obligation for all defined benefit pension plans | 6,500 | $ 6,100 | 6,500 | |||||
Retirement Compensation Arrangements | Retirement Compensation Arrangements fund a portion of our Canadian nonregistered pension plans. Under Retirement Compensation Arrangements, our contributions are split: • 50 percent to our investments in a portfolio of equities; and • 50 percent to a noninterest-bearing refundable tax account held by the Canada Revenue Agency — as required by Canadian tax rules. The Canadian tax rules requirement means that — on average, over time — approximately 50 percent of our Canadian nonregistered pension plans’ assets do not earn returns. | |||||||
Actual return on plan assets | $ 226 | 368 | 808 | |||||
Number of employees covered under union-administered multiemployer pension plans | 1,200 | |||||||
Multiemployer benefit plans contributions | $ 4 | 4 | 4 | |||||
Employer contributions to defined contribution plans | 21 | 20 | $ 20 | |||||
Qualified and Registered Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Fair value of plan assets | 5,630 | $ 5,481 | $ 5,630 | |||||
Expected return on plan assets | 9.00% | 9.00% | 9.00% | |||||
Actual return on plan assets | $ 226 | |||||||
Pension | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined Benefit Plan, Actuarial Gain (Loss) | 309 | $ (1,006) | ||||||
Benefit Plan Amendment | During fourth quarter 2013, we ratified an amendment to the Weyerhaeuser Pension Plan that closes the plan to newly hired and rehired salaried or non union employees effective January 1, 2014. Certain union employee groups adopted similar amendments effective at other dates. Beginning at the effective date, new hires and rehires into groups affected by these amendments will receive a company contribution for retirement in their 401(k) plan. The change was announced in December 2013. During fourth quarter 2013, we ratified amendments to the Weyerhaeuser Company Limited Retirement Plan for Non-Union Employees and the Retirement Plan for Non-Union Employees of Weyerhaeuser Company Limited at Grand Prairie, Alberta and Grande Cache, Alberta that (1) closes these plans to new hires and rehires effective January 1, 2014 and (2) changes the early retirement reduction for current employees enrolled in these plans, effective for future years of service beginning January 1, 2016. These changes were announced to participants in December 2013. | |||||||
Amortization of prior service cost (credit)(2) | 4 | 5 | $ 7 | |||||
Charge for curtailments and special termination benefits | 0 | (9) | 0 | |||||
Increase in fair value of pension assets | $ 57 | 57 | 53 | |||||
Employer contributions and benefit payments | 60 | 70 | ||||||
Fair value of plan assets | $ 5,643 | $ 5,614 | 5,491 | 5,643 | 5,614 | |||
Percentage increase in fair value of pension assets | 1.00% | |||||||
Actual return on plan assets | 226 | $ 368 | ||||||
Registered Canadian Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Employer contributions and benefit payments | 33 | |||||||
Expected contribution to benefit plans during 2016 | $ 16 | |||||||
United States Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Discount rates | 4.10% | 4.50% | 4.10% | |||||
Annual rate of return on assets over 31 years | 14.20% | |||||||
Annual rate of return on assets over the past 5 years | 8.00% | |||||||
Canadian Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Discount rates | 3.90% | 4.00% | 3.90% | |||||
Canadian Other Postretirement Benefit Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Discount rates | 3.80% | 3.90% | 3.80% | |||||
United States Other Postretirement Benefit Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Discount rates | 3.60% | 4.00% | 3.60% | |||||
Other Postretirement Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Defined Benefit Plan, Actuarial Gain (Loss) | $ 34 | $ (4) | ||||||
Benefit Plan Amendment | During fourth quarter 2014, the decision was ratified to reinstate or modify available options for U.S. and Canadian postretirement benefits for certain retirees. As a result, our postretirement obligation increased by $45 million . | During fourth quarter 2013, the decision was ratified to eliminate Company funding of the Post-Medicare Health Reimbursement Account (HRA) for certain salaried retirees after 2014. This change was communicated to affected retirees during January 2014. As a result, we recognized a pretax gain of $151 million in 2014 from this plan amendment. | ||||||
Amortization of prior service cost (credit)(2) | (9) | (161) | (23) | |||||
Charge for curtailments and special termination benefits | 0 | 0 | 0 | |||||
Increase in fair value of pension assets | 0 | 0 | ||||||
Employer contributions and benefit payments | 23 | 31 | ||||||
Fair value of plan assets | $ 0 | $ 0 | 0 | 0 | $ 0 | |||
Expected contribution to benefit plans during 2016 | 22 | |||||||
Actual return on plan assets | 0 | 0 | ||||||
Non-Qualified U.S. Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Employer contributions and benefit payments | 24 | |||||||
Expected contribution to benefit plans during 2016 | 19 | |||||||
Qualified U.S. Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Charge for curtailments and special termination benefits | $ (9) | |||||||
Funded status of our plan reduced | (291) | |||||||
Discount rates | 4.90% | 4.90% | 4.40% | |||||
Deferred tax liabilities decrease | (108) | |||||||
Total equity decreased for changes in cumulative other comprehensive loss | (183) | |||||||
Expected contribution to benefit plans during 2016 | 0 | |||||||
Non Registered Canadian Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Employer contributions and benefit payments | 3 | |||||||
Fair value of plan assets | 13 | 10 | $ 13 | |||||
Expected contribution to benefit plans during 2016 | $ 3 | |||||||
Expected Return on Plan Assets | Canadian tax rules require that 50 percent of the assets for nonregistered plans go to a noninterest-bearing refundable tax account. As a result, the return we earn investing the other 50 percent is spread over 100 percent of the assets. | |||||||
Expected return on plan assets | 3.50% | 3.50% | 3.50% | |||||
Canada | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Weighted health care cost trend rate assumed for next year | 5.00% | 5.60% | ||||||
U.S. | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Weighted health care cost trend rate assumed for next year | 6.30% | |||||||
U.S. | Qualified and Registered Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected Return on Plan Assets | Our expected long-term rate of return for plan assets as of December 31, 2015 , is comprised of: • a 7.2 percent assumed return from direct investments and • a 1.7 percent assumed return from derivatives. Determining our expected return: • requires a high degree of judgment, • uses our historical fund returns as a base and • places added weight on more recent pension plan asset performance. Over the 31 years it has been in place, our U.S. pension trust investment strategy has achieved a 14.2 percent net compound annual return rate. The past 5 years, our net compounded annual return was 8.0 percent . | |||||||
U.S. | Pre Medicare [Member] | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Weighted health care cost trend rate assumed for next year | 7.20% | |||||||
Fair Value, Inputs, Level 3 | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Fair value of plan assets | 4,840 | $ 4,935 | $ 4,722 | $ 4,840 | $ 4,935 | |||
Fair Value, Inputs, Level 3 | Pension | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Fair value of plan assets | $ 4,700 | |||||||
Fair value of plan assets, percent | 86.00% | |||||||
Fair Value, Inputs, Level 3 | Non Registered Canadian Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Fair value of plan assets | $ 0 | $ 0 | 0 | |||||
Investments | Qualified and Registered Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected return on plan assets | 7.20% | |||||||
Derivatives | Qualified and Registered Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected return on plan assets | 1.70% | |||||||
Investments we are allowed to invest | Non Registered Canadian Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected return on plan assets | 7.00% | |||||||
Collective Bargaining Arrangement | Other Postretirement Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Expected contribution to benefit plans during 2016 | $ 7 | |||||||
Real Estate Divestiture | Qualified U.S. Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Charge for curtailments and special termination benefits | (6) | |||||||
Charges for restructuring, closures and impairments | Qualified U.S. Pension Plans | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Charge for curtailments and special termination benefits | $ (3) | |||||||
Gain on postretirement plan amendment | Other Postretirement Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Amortization of prior service cost (credit)(2) | $ (151) |
VARIABLE INTEREST ENTITIES - Ad
VARIABLE INTEREST ENTITIES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Variable Interest Entity [Line Items] | |||
Proceeds of investments (payments of liabilities) held by special purpose entities | $ 0 | $ 0 | $ 22 |
Interest expense | 347 | 344 | 369 |
Net deferred tax liability | 82 | ||
Special Purpose Entities | |||
Variable Interest Entity [Line Items] | |||
Proceeds of investments (payments of liabilities) held by special purpose entities | 22 | ||
Interest expense | 29 | 29 | 29 |
Interest income | $ 34 | 34 | 34 |
Number of qualifying special purpose entities | 3 | ||
Net equity in SPEs | $ 105 | ||
Net deferred tax liability | 180 | ||
Buyer-sponsored SPEs | |||
Variable Interest Entity [Line Items] | |||
Proceeds of investments (payments of liabilities) held by special purpose entities | 184 | ||
Restricted financial investments | $ 615 | $ 615 | |
Weighted average interest rate | 5.50% | 5.50% | |
Buyer-sponsored SPEs | Restricted bank financial instruments due in 2019 | |||
Variable Interest Entity [Line Items] | |||
Restricted financial investments | $ 253 | ||
Investment, maturity date | Dec. 31, 2019 | ||
Buyer-sponsored SPEs | Restricted bank financial instruments due in 2020 | |||
Variable Interest Entity [Line Items] | |||
Restricted financial investments | $ 362 | ||
Investment, maturity date | Dec. 31, 2020 | ||
Monetization SPEs | |||
Variable Interest Entity [Line Items] | |||
Proceeds of investments (payments of liabilities) held by special purpose entities | $ (162) | ||
Weighted average interest rate | 5.60% | 5.60% | |
Long-term notes | $ 511 | $ 511 | |
Monetization SPEs | Long-term debt due in 2019 | |||
Variable Interest Entity [Line Items] | |||
Long-term notes | $ 209 | ||
Debt, maturity date | Dec. 31, 2019 | ||
Monetization SPEs | Long-term debt due in 2020 | |||
Variable Interest Entity [Line Items] | |||
Long-term notes | $ 302 | ||
Debt, maturity date | Dec. 31, 2020 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Wages, salaries and severance pay | $ 150 | $ 161 |
Pension and postretirement | 44 | 47 |
Vacation pay | 46 | 47 |
Taxes – Social Security and real and personal property | 24 | 24 |
Interest | 104 | 105 |
Customer rebates and volume discounts | 46 | 46 |
Deferred income | 52 | 75 |
Other | 83 | 82 |
Total | $ 549 | $ 587 |
LINES OF CREDIT - Other Letters
LINES OF CREDIT - Other Letters of Credit and Surety Bonds (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||
Letters of credit | $ 47 | $ 44 |
Surety bonds | $ 113 | $ 231 |
LINES OF CREDIT - Additional In
LINES OF CREDIT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | ||
Line of credit, amount outstanding | $ 0 | |
Compensating balance requirments for our letters of credit | $ 17 | |
Revolving credit facility, new | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 1,000 | |
Line of credit, expiration date | Sep. 30, 2018 | |
Revolving credit facility, old | ||
Line of Credit Facility [Line Items] | ||
Line of credit, maximum borrowing capacity | $ 1,000 | |
Line of credit, expiration date | Jun. 30, 2015 |
LONG-TERM DEBT - Long-Term Debt
LONG-TERM DEBT - Long-Term Debt by Types and Interest Rates (Includes Current Portion) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | ||
Other | 1 | $ 1 | |
Long-term debt, before unamortized discounts | 4,896 | 4,896 | |
Less unamortized discounts | (5) | (5) | |
Total | 4,891 | 4,891 | |
Portion due within one year | 0 | 0 | |
6.95% debentures due 2017 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 281 | 281 | |
Debt, interest rate | 6.95% | ||
Debt, maturity date | Dec. 31, 2017 | ||
7.00% debentures due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 62 | 62 | |
Debt, interest rate | 7.00% | ||
Debt, maturity date | Dec. 31, 2018 | ||
7.375% notes due 2019 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 500 | 500 | |
Debt, interest rate | 7.375% | ||
Debt, maturity date | Dec. 31, 2019 | ||
Variable rate term loan credit facility matures 2020 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 550 | $ 550 | |
Debt, maturity date | Dec. 31, 2020 | ||
9.00% debentures due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 150 | 150 | |
Debt, interest rate | 9.00% | ||
Debt, maturity date | Dec. 31, 2021 | ||
7.125% debentures due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 191 | 191 | |
Debt, interest rate | 7.125% | ||
Debt, maturity date | Dec. 31, 2023 | ||
4.625% notes due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 500 | $ 500 | |
Debt, interest rate | 4.625% | ||
Debt, maturity date | Dec. 31, 2023 | ||
8.50% debentures due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 300 | 300 | |
Debt, interest rate | 8.50% | ||
Debt, maturity date | Dec. 31, 2025 | ||
7.95% debentures due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 136 | 136 | |
Debt, interest rate | 7.95% | ||
Debt, maturity date | Dec. 31, 2025 | ||
7.70% debentures due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 150 | 150 | |
Debt, interest rate | 7.70% | ||
Debt, maturity date | Dec. 31, 2026 | ||
7.35% debentures due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 62 | 62 | |
Debt, interest rate | 7.35% | ||
Debt, maturity date | Dec. 31, 2026 | ||
7.85% debentures due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 100 | 100 | |
Debt, interest rate | 7.85% | ||
Debt, maturity date | Dec. 31, 2026 | ||
6.95% debentures due 2027 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 300 | 300 | |
Debt, interest rate | 6.95% | ||
Debt, maturity date | Dec. 31, 2027 | ||
7.375% debentures due 2032 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,250 | 1,250 | |
Debt, interest rate | 7.375% | ||
Debt, maturity date | Dec. 31, 2032 | ||
6.875% debentures due 2033 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 275 | 275 | |
Debt, interest rate | 6.875% | ||
Debt, maturity date | Dec. 31, 2033 | ||
Industrial revenue bonds, rates from 6.7% to 6.8%, due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 88 | $ 88 | |
Debt, interest rate minimum | 6.70% | ||
Debt, interest rate maximum | 6.80% | ||
Debt, maturity date | Dec. 31, 2022 |
LONG-TERM DEBT - Amounts of Lon
LONG-TERM DEBT - Amounts of Long-Term Debt Due Annually for the Next Five Years and the Total Amount Due After 2020 (Details) $ in Millions | Dec. 31, 2015USD ($) |
Long-term debt maturities | |
2,016 | $ 0 |
2,017 | 281 |
2,018 | 62 |
2,019 | 500 |
2,020 | 550 |
Thereafter | $ 3,503 |
LONG-TERM DEBT - Additional Inf
LONG-TERM DEBT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | |
4.625% notes due 2023 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 500 | $ 500 |
Net proceeds from issuance of debt | 495 | |
Debt, interest rate | 4.625% | |
Variable rate term loan credit facility matures 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | 550 | $ 550 |
Proceeds from long-term debt | 550 | |
Longview Timber assumed debt | ||
Debt Instrument [Line Items] | ||
Early repayment of long-term debt | 1,118 | |
Pretax charges in connection with early extinguishment of debt | $ 25 |
FAIR VALUE OF FINANCIAL INSTR98
FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated fair values and carrying values of our long-term debt (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 4,891 | $ 4,891 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt, fair value | $ 5,620 | $ 5,922 |
LEGAL PROCEEDINGS, COMMITMENT99
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Changes in the Reserve for Environmental Remediation (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Environmental Exit Cost [Line Items] | |
Reserve balance as of December 31, 2014 | $ 29 |
Reserve charges and adjustments, net | 15 |
Payments | (7) |
Reserve balance as of December 31, 2015 | $ 37 |
Total active sites as of December 31, 2015 | 38 |
LEGAL PROCEEDINGS, COMMITMEN100
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Changes in the Reserve for Asset Retirement Obligations (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | |
Reserve balance as of December 31, 2014 | $ 40 |
Reserve charges and adjustments, net | 10 |
Payments | (11) |
Other adjustments(1) | (5) |
Reserve balance as of December 31, 2015 | $ 34 |
LEGAL PROCEEDINGS, COMMITMEN101
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Our purchase obligations (Details) $ in Millions | Dec. 31, 2015USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase obligation in 2016 | $ 84 |
Purchase obligation in 2017 | 33 |
Purchase obligation in 2018 | 8 |
Purchase obligation in 2019 | 2 |
Purchase obligation in 2020 | 2 |
Purchase obligation Thereafter | $ 17 |
LEGAL PROCEEDINGS, COMMITMEN102
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Our rent expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Leased Assets [Line Items] | |||
Rent expense | $ 31 | $ 32 | $ 38 |
LEGAL PROCEEDINGS, COMMITMEN103
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Our operating lease commitments (Details) $ in Millions | Dec. 31, 2015USD ($) |
Operating Leased Assets [Line Items] | |
Operating lease commitment due 2016 | $ 27 |
Operating lease commitment due 2017 | 26 |
Operating lease commitment due 2018 | 21 |
Operating lease commitment due 2019 | 17 |
Operating lease commitment due 2020 | 14 |
Operating lease commitment due Thereafter | $ 105 |
LEGAL PROCEEDINGS, COMMITMEN104
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Loss Contingencies [Line Items] | |
Remediation costs for all identified sites may exceed reserves | $ 116 |
Timberlands lease | |
Loss Contingencies [Line Items] | |
Lease expiration date | Dec. 31, 2023 |
Guaranteed future payments on lease | $ 15 |
SHAREHOLDERS' INTEREST - Reconc
SHAREHOLDERS' INTEREST - Reconciliation of Our Common Share Activity (Details) - shares | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Class of Stock [Line Items] | ||||
Outstanding at beginning of year | 524,474,315 | 583,548,000 | 542,393,000 | |
New issuance (Note 4) | 0 | 0 | 33,350,000 | |
Shares tendered (Note 3) | (59,000,000) | 0 | (58,813,151) | 0 |
Issued for restricted stock units | 365,000 | 451,000 | 462,000 | |
Repurchased | (16,190,000) | (6,063,000) | 0 | |
Outstanding at end of year | 510,483,285 | 524,474,315 | 583,548,000 | |
Stock options exercised | ||||
Class of Stock [Line Items] | ||||
Shares issued | 1,592,000 | 5,134,000 | 7,209,000 | |
Issued for performance shares | ||||
Class of Stock [Line Items] | ||||
Shares issued | 242,000 | 217,000 | 134,000 |
SHAREHOLDERS' INTEREST - Change
SHAREHOLDERS' INTEREST - Changes in amounts included in our cumulative other comprehensive income (loss) by component (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Beginning balance | $ (1,393) | $ (686) |
Other comprehensive income (loss) before reclassifications | 124 | (1,075) |
Income taxes | (64) | 377 |
Net other comprehensive income (loss) before reclassifications | 60 | (698) |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 187 | (19) |
Income taxes | (66) | 10 |
Net amounts reclassified from cumulative other comprehensive income (loss) | 121 | (9) |
Total other comprehensive income (loss) | 181 | (707) |
Ending balance | (1,212) | (1,393) |
Foreign currency translation adjustments | ||
Beginning balance | 304 | 354 |
Other comprehensive income (loss) before reclassifications | (97) | (50) |
Income taxes | 0 | 0 |
Net other comprehensive income (loss) before reclassifications | (97) | (50) |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 0 | 0 |
Income taxes | 0 | 0 |
Net amounts reclassified from cumulative other comprehensive income (loss) | 0 | 0 |
Total other comprehensive income (loss) | (97) | (50) |
Ending balance | 207 | 304 |
Unrealized gains on available-for-sale securities | ||
Beginning balance | 6 | 6 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Income taxes | 0 | 0 |
Net other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 0 | 0 |
Income taxes | 0 | 0 |
Net amounts reclassified from cumulative other comprehensive income (loss) | 0 | 0 |
Total other comprehensive income (loss) | 0 | 0 |
Ending balance | 6 | 6 |
Pension | Actuarial losses | ||
Beginning balance | (1,623) | (1,066) |
Other comprehensive income (loss) before reclassifications | 184 | (1,008) |
Income taxes | (52) | 369 |
Net other comprehensive income (loss) before reclassifications | 132 | (639) |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 182 | 125 |
Income taxes | (63) | (43) |
Net amounts reclassified from cumulative other comprehensive income (loss) | 119 | 82 |
Total other comprehensive income (loss) | 251 | (557) |
Ending balance | (1,372) | (1,623) |
Pension | Prior service credits (costs) | ||
Beginning balance | (15) | (19) |
Other comprehensive income (loss) before reclassifications | 2 | 1 |
Income taxes | 0 | 0 |
Net other comprehensive income (loss) before reclassifications | 2 | 1 |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 4 | 5 |
Income taxes | (2) | (2) |
Net amounts reclassified from cumulative other comprehensive income (loss) | 2 | 3 |
Total other comprehensive income (loss) | 4 | 4 |
Ending balance | (11) | (15) |
Other Postretirement Benefits | Actuarial losses | ||
Beginning balance | (108) | (111) |
Other comprehensive income (loss) before reclassifications | 37 | (6) |
Income taxes | (12) | 1 |
Net other comprehensive income (loss) before reclassifications | 25 | (5) |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | 10 | 12 |
Income taxes | (4) | (4) |
Net amounts reclassified from cumulative other comprehensive income (loss) | 6 | 8 |
Total other comprehensive income (loss) | 31 | 3 |
Ending balance | (77) | (108) |
Other Postretirement Benefits | Prior service credits (costs) | ||
Beginning balance | 43 | 150 |
Other comprehensive income (loss) before reclassifications | (2) | (12) |
Income taxes | 0 | 7 |
Net other comprehensive income (loss) before reclassifications | (2) | (5) |
Amounts reclassified from cumulative other comprehensive income (loss)(1) | (9) | (161) |
Income taxes | 3 | 59 |
Net amounts reclassified from cumulative other comprehensive income (loss) | (6) | (102) |
Total other comprehensive income (loss) | (8) | (107) |
Ending balance | $ 35 | $ 43 |
SHAREHOLDERS' INTEREST - Additi
SHAREHOLDERS' INTEREST - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 08, 2013 | Jun. 24, 2013 | Apr. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 08, 2015 | Aug. 27, 2015 | Aug. 13, 2014 |
Class of Stock [Line Items] | |||||||||
New shares issued | 0 | 0 | 33,350,000 | ||||||
Stock repurchase program, shares repurchased | 16,190,000 | 6,063,000 | 0 | ||||||
Stock repurchase program, repurchase of common stock, cash settlement | $ 518 | $ 203 | $ 0 | ||||||
Stock repurchase program 2014 | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchase program, authorized repurchase amount | $ 700 | ||||||||
Stock repurchase program, shares repurchased | 15,471,962 | 6,062,993 | |||||||
Stock repurchase program, shares repurchased value | $ 497 | $ 203 | |||||||
Stock repurchase program August 2015 | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchase program, authorized repurchase amount | $ 500 | ||||||||
Stock repurchase program, shares repurchased | 717,464 | ||||||||
Stock repurchase program, shares repurchased value | $ 22 | ||||||||
Stock repurchase program, remaining authorized repurchase amount | $ 478 | ||||||||
Stock repurchase program November 2015 | |||||||||
Class of Stock [Line Items] | |||||||||
Stock repurchase program, authorized repurchase amount | $ 2,500 | ||||||||
Stock repurchase program, shares repurchased | 0 | ||||||||
Preferred shares | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred shares, outstanding | 0 | 0 | |||||||
Preferred shares, authorized | 7,000,000 | ||||||||
Preferred shares, par value | $ 1 | ||||||||
6.375 percent Mandatory Convertible Preference Shares, Series A | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred shares, outstanding | 13,799,711 | 13,800,000 | |||||||
Preferred shares, authorized | 40,000,000 | 40,000,000 | |||||||
Preferred shares, par value | $ 1 | $ 1 | $ 1 | ||||||
New shares issued | 13,800,000 | ||||||||
Preference shares, liquidation preference | $ 50 | $ 50 | $ 50 | ||||||
Net proceeds from issuance of preference shares | $ 669 | ||||||||
Preference shares, dividend rate | 6.375% | ||||||||
Conversion of Stock, Shares Converted | 289 | ||||||||
Common shares: | |||||||||
Class of Stock [Line Items] | |||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 436 | ||||||||
New shares issued | 4,400,000 | 29,000,000 | |||||||
Minimum | 6.375 percent Mandatory Convertible Preference Shares, Series A | |||||||||
Class of Stock [Line Items] | |||||||||
Preference shares, shares that will be issued upon conversion | 1.5283 | ||||||||
Maximum | 6.375 percent Mandatory Convertible Preference Shares, Series A | |||||||||
Class of Stock [Line Items] | |||||||||
Preference shares, shares that will be issued upon conversion | 1.8339 |
SHARE-BASED COMPENSATION - Weig
SHARE-BASED COMPENSATION - Weighted Average Assumptions Used in Estimating the Value of Stock Options Granted (Details) - Stock options - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 25.92% | 31.71% | 38.00% |
Expected dividends | 3.28% | 2.92% | 2.23% |
Expected term (in years) | 4 years 9 months 7 days | 4 years 11 months 19 days | 4 years 11 months 19 days |
Risk-free rate | 1.54% | 1.57% | 0.92% |
Weighted average grant-date fair value | $ 5.85 | $ 6.62 | $ 8.40 |
SHARE-BASED COMPENSATION - Sche
SHARE-BASED COMPENSATION - Schedule of Stock Options Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Options | ||
Balance, beginning of year | 12,285,000 | |
Granted | 2,123,000 | |
Exercised | (1,376,000) | |
Forfeited or expired | (269,000) | |
Balance, end of year | 12,763,000 | 12,285,000 |
Exercisable, end of year | 8,442,000 | |
Number of options outstanding that have met the requisite service period and will be released as identifed in the grant terms | 1,034,000 | |
Weighted Average Exercise Price | ||
Balance, beginning of year | $ 24.19 | |
Granted | 35.40 | |
Exercised | 24.46 | |
Forfeited or expired | 31.34 | |
Balance, end of year | 25.88 | $ 24.19 |
Exercisable, end of year | $ 22.78 | |
Weighted Average Remaining Contractual Term | ||
Balance, end of year | 5 years 2 months 12 days | |
Exercisable, end of year | 3 years 7 months 13 days | |
Aggregate Intrinsic Value | ||
Balance, end of year | $ 65 | |
Exercisable, end of year | $ 62 | |
Real Estate Divestiture | ||
Options | ||
Forfeited or expired | (1,601,000) |
SHARE-BASED COMPENSATION - S110
SHARE-BASED COMPENSATION - Schedule of Restricted Stock Units Award Activity (Details) - Restricted stock units - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Units | |||
Balance, beginning of year | 1,227,000 | ||
Granted | 433,000 | ||
Vested | (489,000) | ||
Forfeited | (67,000) | ||
Balance, end of year | 1,104,000 | 1,227,000 | |
Nonvested restricted stock units that have met the requisite service period and will be released as identified in the grant terms | 232,000 | ||
Weighted Average Grant Date Fair Value | |||
Balance, beginning of year | $ 28.06 | ||
Granted | 35.41 | $ 30.14 | $ 30.54 |
Vested | 26.70 | ||
Forfeited | 31.11 | ||
Balance, end of year | $ 31.37 | $ 28.06 | |
Real Estate Divestiture | |||
Stock Units | |||
Forfeited | (280,000) |
SHARE-BASED COMPENSATION - W111
SHARE-BASED COMPENSATION - Weighted Average Assumptions Used in Estimating the Value of Performance Share Units (Details) - Performance share units - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance period | 1/1/2015 – 12/31/2017 | 1/1/2014 – 12/31/2015 | 1/1/2013 – 12/31/2014 |
Valuation date closing stock price | $ 35.41 | $ 30.16 | $ 30.48 |
Expected dividends | 3.26% | 2.91% | 2.23% |
Risk-free rate minimum | 0.05% | 0.03% | 0.09% |
Risk-free rate maximum | 1.07% | 0.79% | 0.46% |
Volatility minimum | 16.33% | 20.74% | 22.09% |
Volatility maximum | 20.89% | 23.53% | 29.57% |
Weighted average grant-date fair value | $ 34.75 | $ 30.62 | $ 31.59 |
SHARE-BASED COMPENSATION - S112
SHARE-BASED COMPENSATION - Schedule of Performance Share Units Activity (Details) - Performance share units - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Units | |||
Balance, beginning of year | 890,000 | ||
Granted | 239,000 | ||
Vested | (395,000) | ||
Forfeited | (23,000) | ||
Performance adjustment | (31,000) | ||
Balance, end of year | 680,000 | 890,000 | |
Nonvested performance share units that have met the requisite service period and will be released as identified in the grant terms | 134,000 | ||
Weighted Average Grant Date Fair Value | |||
Balance, beginning of year | $ 29.46 | ||
Granted | 34.75 | $ 30.62 | $ 31.59 |
Vested | 29.08 | ||
Forfeited | 31.34 | ||
Performance adjustment | 30.62 | ||
Balance, end of year | $ 31.42 | $ 29.46 | |
Real Estate Divestiture | |||
Stock Units | |||
Forfeited | (44,000) |
SHARE-BASED COMPENSATION - W113
SHARE-BASED COMPENSATION - Weighted Average Assumptions Used to Re-measure the Value of Stock Appreciation Rights (Details) - Stock appreciation rights - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 22.10% | 18.20% | 24.02% |
Expected dividends | 4.20% | 3.21% | 2.81% |
Expected term (in years) | 1 year 11 months 9 days | 1 year 3 months 26 days | 1 year 1 month 28 days |
Risk-free rate | 0.99% | 0.45% | 0.19% |
Weighted average fair value | $ 6.96 | $ 12.70 | $ 8.68 |
SHARE-BASED COMPENSATION - S114
SHARE-BASED COMPENSATION - Schedule of Stock Appreciation Rights Activity (Details) - Stock appreciation rights $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Rights | |
Balance, beginning of year | shares | 417 |
Granted | shares | 58 |
Exercised | shares | (79) |
Forfeited or expired | shares | (14) |
Balance, end of year | shares | 382 |
Exercisable, end of year | shares | 289 |
Weighted Average Exercise Price | |
Balance, beginning of year | $ / shares | $ 22.85 |
Granted | $ / shares | 35.40 |
Exercised | $ / shares | 23.91 |
Forfeited or expired | $ / shares | 31.01 |
Balance, end of year | $ / shares | 24.25 |
Exercisable, end of year | $ / shares | $ 21.63 |
Average Remaining Contractual Term | |
Balance, end of year | 4 years 4 months 2 days |
Exercisable, end of year | 2 years 11 months 23 days |
Aggregate Intrinsic Value | |
Balance, end of year | $ | $ 14 |
Exercisable, end of year | $ | $ 11 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Share-based compensation expense | $ 31 | $ 40 | $ 42 |
Number of shares available for future grants under the Plan | 17,317,903 | ||
Number of shares of stock options and stock appreciation rights an individual may receive in one year | 2,000,000 | ||
Number of shares of restricted stock, restricted stock units, performance shares, performance share units or other equity grants an individual may receive in one year | 1,000,000 | ||
Value of awards no participant may be granted in a 12 month period | $ 10 | ||
Increase in common share if all share-based awards were exercised or vested | 32,000,000 | ||
Total income tax benefit from share-based awards | $ 8 | 11 | 10 |
Realized excess tax benefits | 4 | 10 | 13 |
Total intrinsic value of stock options exercised | 13 | 55 | 61 |
Total grant-date fair value of stock options vested | $ 14 | $ 16 | $ 14 |
Detail of deferred compensation stock equivalent units | Certain employees and our board of directors may defer compensation into stock-equivalent units. The Details The plan works differently for employees and directors. Eligible employees: • may choose to defer all or part of their bonus into stock-equivalent units; • may choose to defer part of their salary, except for executive officers; and • receive a 15 percent premium if the deferral is for at least five years. Our directors: • receive a portion of their annual retainer fee in the form of restricted stock units, which vest over one year and may be deferred into stock-equivalent units; • may choose to defer some or all of the remainder of their annual retainer fee into stock-equivalent units; and • do not receive a premium for their deferrals. Employees and directors also choose when the deferrals will be paid out although no deferrals may be paid until after the separation from service of the employee or director. | ||
Number of common shares to be issued for directors who elected common share payments subsequent to year-end | 651,729 | ||
Number of stock-equivalent units outstanding in deferred compensation accounts | 1,003,053 | 944,966 | 915,160 |
Stock options | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Terms of award | Our stock options generally: • vest over four years of continuous service and • must be exercised within 10 years of the grant-date. The vesting and post-termination vesting terms for stock options granted in 2015 , 2014 and 2013 were as follows: • vest ratably over four years; • vest or continue to 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 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. | ||
Restricted stock units | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Terms of award | Our restricted stock units granted in 2015 , 2014 and 2013 generally: • 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 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 grant-date fair value | $ 35.41 | $ 30.14 | $ 30.54 |
Total grant-date fair value vested | $ 14 | $ 16 | $ 14 |
Performance share units | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Terms of award | The final number of shares awarded will range from 0 percent to 150 percent of each grant’s target, depending upon actual company performance. For shares granted in 2015 the ultimate number of performance share units earned is based on two measures: • our relative total shareholder return (TSR) ranking measured against the S&P 500 over a three year period and • our relative TSR ranking measured against an industry peer group of companies over a three year period. The vesting provisions for performance share units granted in 2015 were as follows: • vest 100 percent on the third anniversary of the grant date 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 the employee has met the second anniversary of the grant date; and • will be forfeited upon termination of employment in all other situations including early retirement prior to age 62. For shares granted in 2014 and 2013 the ultimate number of performance share units earned is based on two measures: • Weyerhaeuser’s cash flow during the first year determined the initial number of units earned and • Weyerhaeuser’s relative total shareholder return (TSR) ranking in the S&P 500 during the first two years is used to adjust the initial number of units earned up or down by 20 percent . At the end of the two-year performance period and over a further two-year vesting period, performance share units would be paid in shares of our stock. Performance share units granted and that are earned vest 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 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 grant-date fair value | $ 34.75 | $ 30.62 | $ 31.59 |
Total grant-date fair value vested | $ 9 | $ 7 | $ 5 |
Performance share units | Minimum | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Final number of shares awarded of each grant's target | 0.00% | ||
Performance share units | Maximum | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Final number of shares awarded of each grant's target | 150.00% | ||
Total shareholder return ranking in the S&P 500 during the first two years is used to adjust the initial number of units earned up or down | 20.00% | ||
Stock appreciation rights | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Terms of award | Stock appreciation rights are similar to stock options. Employees benefit when the market price of our stock is higher on the exercise date than it was on the date the stock appreciation rights were granted. The differences are that the employee: • receives the benefit as a cash award and • does not purchase the underlying stock. The vesting conditions and exceptions are the same as for 10-year stock options. Details are in the Stock Options section earlier in this note. Stock appreciation rights are generally issued to employees outside of the U.S. | ||
Total liabilities paid | $ 1 | $ 2 | $ 4 |
Equity-classified share-based compensation arrangements | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Unrecognized share-based compensation cost | $ 40 | ||
Unrecognized share-based compensation costs, weighted average period for recognition | 2 years 3 months 18 days | ||
2014 grants | Performance share units | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Final number of shares awarded of each grant's target | 114.00% | ||
2013 grants | Performance share units | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Final number of shares awarded of each grant's target | 150.00% | ||
Total shareholder return ranking in the S&P 500 during the first two years is used to adjust the initial number of units earned up or down | 11.00% | 15.00% | |
Real Estate Divestiture | |||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |||
Share-based compensation expense | $ 3 | $ 5 | |
Total income tax benefit from share-based awards | 1 | 2 | |
Realized excess tax benefits | $ 2 | $ 2 |
CHARGES FOR RESTRUCTURING, C116
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS - Items Included in Our Restructuring, Closure and Asset Impairment Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring and closure charges: | |||
Termination benefits | $ 4 | $ 27 | $ 1 |
Pension and postretirement charges | 0 | 3 | 0 |
Other restructuring and closure costs | 6 | 12 | 4 |
Charges for restructuring and closures | 10 | 42 | 5 |
Impairment of long-lived assets | 15 | 2 | 372 |
Total charges for restructuring, closures and impairments | $ 25 | $ 44 | $ 377 |
CHARGES FOR RESTRUCTURING, C117
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS - Changes in accrued severance related to restructuring (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |||
Accrued severance as of December 31, 2014 | $ 10 | ||
Charges | 4 | $ 27 | $ 1 |
Payments | (9) | ||
Accrued severance as of December 31, 2015 | $ 5 | $ 10 |
CHARGES FOR RESTRUCTURING, C118
CHARGES FOR RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impairment of long-lived assets | $ 15 | $ 2 | $ 372 | |
Fair Value, Inputs, Level 3 | Wood Products | ||||
Impairment of long-lived assets | $ 9 | |||
Unallocated Items | Fair Value, Inputs, Level 2 and 3 | Coyote Springs Property | ||||
Non-cash impairment charge | $ 356 | |||
Unallocated Items | Fair Value, Inputs, Level 3 | Nonstrategic asset [Member] | ||||
Impairment of long-lived assets | $ 13 |
OTHER OPERATING COSTS (INCOM119
OTHER OPERATING COSTS (INCOME), NET - Various Income and Expense Items Included in Other Operating Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain on postretirement plan amendment (Note 9) | $ 0 | $ (151) | $ 0 |
Gain on disposition of nonstrategic assets | (12) | (27) | (19) |
Foreign exchange losses, net | 47 | 27 | 7 |
Land management income | (37) | (34) | (28) |
Litigation expense, net | 23 | 9 | 16 |
Other, net | (17) | (25) | (11) |
Total | 18 | (201) | (35) |
Plum Creek Timber Company, Inc. [Member] | |||
Plum Creek merger-related costs | $ 14 | $ 0 | $ 0 |
OTHER OPERATING COSTS (INCOM120
OTHER OPERATING COSTS (INCOME), NET - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain on disposition of non-strategic assets | $ 12 | $ 27 | $ 19 |
Landfill in Washington State | |||
Gain on disposition of non-strategic assets | $ 22 |
INCOME TAXES - Domestic and For
INCOME TAXES - Domestic and Foreign Earnings (Loss) From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Domestic earnings | $ 421 | $ 970 | $ 198 | ||||||||
Foreign earnings | 82 | 43 | 122 | ||||||||
Earnings from continuing operations before income taxes | $ 51 | $ 175 | $ 157 | $ 120 | $ 214 | $ 237 | $ 328 | $ 234 | $ 503 | $ 1,013 | $ 320 |
INCOME TAXES - Provision (Benef
INCOME TAXES - Provision (Benefit) for Income Taxes From Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 3 | $ (26) | $ (80) |
State | (1) | 12 | (18) |
Foreign | (5) | 3 | (21) |
Total | (3) | (11) | (119) |
Deferred: | |||
Federal | (30) | 178 | (79) |
State | 2 | 6 | 6 |
Foreign | 28 | 12 | 21 |
Total | 0 | 196 | (52) |
Total income tax provision (benefit) | $ (3) | $ 185 | $ (171) |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Applicable to Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. federal statutory income tax | $ 176 | $ 354 | $ 112 |
State income taxes, net of federal tax benefit | 1 | 14 | 7 |
REIT income not subject to federal income tax | (158) | (161) | (101) |
REIT benefit from change to tax law | (13) | 0 | 0 |
Foreign taxes | 0 | (2) | (8) |
Provision for unrecognized tax benefits | (7) | (4) | (193) |
Repatriation of Canadian earnings | 0 | 0 | 21 |
Domestic production activities deduction | 0 | 0 | (13) |
Other, net | (2) | (16) | 4 |
Total income tax provision (benefit) | $ (3) | $ 185 | $ (171) |
Effective income tax rate | (0.50%) | 18.30% | (53.40%) |
INCOME TAXES - Balance Sheet Cl
INCOME TAXES - Balance Sheet Classification of Deferred Income Tax Assets (Liabilities) Related to Continuing Operations (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Net noncurrent deferred tax asset | $ 4 | $ 44 |
Net noncurrent deferred tax liability | (86) | (14) |
Net deferred tax asset (liability) | $ (82) | |
Net deferred tax asset (liability) | $ 30 |
INCOME TAXES - Items Included i
INCOME TAXES - Items Included in Our Deferred Income Tax Assets (Liabilities) (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Postretirement benefits | $ 80 | $ 101 |
Pension | 260 | 369 |
State tax credits | 56 | 56 |
Net operating loss carryforwards | 59 | 86 |
Cellulosic biofuel producers credit | 78 | 100 |
Other | 203 | 223 |
Gross deferred tax assets | 736 | 935 |
Valuation allowance | (72) | (72) |
Net deferred tax assets | 664 | 863 |
Property, plant and equipment | (496) | (523) |
Timber installment notes | (180) | (180) |
Other | (70) | (130) |
Deferred tax liabilities | (746) | (833) |
Net deferred tax asset (liability) | $ (82) | |
Net deferred tax asset (liability) | $ 30 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | ||
Balance at beginning of year | $ 11 | $ 26 |
Settlements | (4) | 0 |
Lapse of statute | (1) | (15) |
Balance at end of year | $ 6 | $ 11 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Valuation allowance | $ (72) | $ (72) | |
Foreign undistributed earnings | 34 | ||
Unrecognized tax benefits | 6 | 11 | $ 26 |
Unrecognized tax benefits, interest | 1 | 3 | |
Unrecognized tax benefits, payment made in advance of settlements | 6 | ||
Credits and loss carryovers | 3 | 4 | |
Unrecognized tax benefits, net | 4 | 4 | |
Unrecognized tax benefits that would affect our effective tax rate | 5 | $ 12 | |
Unrecognized tax benefits, decrease estimate due to resolution of examinations | 1 | ||
U.S. TRS | |||
Net operating loss carryforwards | $ 29 | ||
Net operating loss carryforwards, expiration dates | Dec. 31, 2035 | ||
Credit carryforwards | $ 93 | ||
U.S. TRS | Minimum | |||
Credit carryforwards, expiration dates | Dec. 31, 2019 | ||
U.S. TRS | Maximum | |||
Credit carryforwards, expiration dates | Dec. 31, 2035 | ||
Foreign | |||
Net operating loss carryforwards | $ 142 | ||
Credit carryforwards | $ 6 | ||
Foreign | Minimum | |||
Net operating loss carryforwards, expiration dates | Dec. 31, 2016 | ||
Credit carryforwards, expiration dates | Dec. 31, 2016 | ||
Foreign | Maximum | |||
Net operating loss carryforwards, expiration dates | Dec. 31, 2032 | ||
Credit carryforwards, expiration dates | Dec. 31, 2032 | ||
State | |||
Net operating loss carryforwards | $ 299 | ||
Credit carryforwards | $ 43 | ||
State | Minimum | |||
Net operating loss carryforwards, expiration dates | Dec. 31, 2024 | ||
Credit carryforwards, expiration dates | Dec. 31, 2016 | ||
State | Maximum | |||
Net operating loss carryforwards, expiration dates | Dec. 31, 2035 | ||
Credit carryforwards, expiration dates | Dec. 31, 2029 | ||
Federal, state and foreign | |||
Net operating loss carryforwards | $ 903 | ||
Credit carryforwards | 188 | ||
U.S. REIT | |||
Net operating loss carryforwards | $ 433 | ||
U.S. REIT | Minimum | |||
Net operating loss carryforwards, expiration dates | Dec. 31, 2030 | ||
U.S. REIT | Maximum | |||
Net operating loss carryforwards, expiration dates | Dec. 31, 2035 | ||
Without expiration | State | |||
Credit carryforwards | $ 46 |
GEOGRAPHIC AREAS - Sales by Geo
GEOGRAPHIC AREAS - Sales by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 1,734 | $ 1,820 | $ 1,807 | $ 1,721 | $ 1,788 | $ 1,915 | $ 1,964 | $ 1,736 | $ 7,082 | $ 7,403 | $ 7,254 |
U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 4,819 | 4,889 | 4,761 | ||||||||
Japan | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 612 | 682 | 758 | ||||||||
China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 397 | 477 | 453 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 353 | 424 | 418 | ||||||||
Europe [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 308 | 328 | 298 | ||||||||
South America | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 82 | 87 | 80 | ||||||||
Other foreign countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 511 | 516 | 486 | ||||||||
Export sales from the U.S. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,719 | 1,892 | 1,891 | ||||||||
Export sales from the U.S. | Japan | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 558 | 620 | 676 | ||||||||
Export sales from the U.S. | China | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 333 | 416 | 411 | ||||||||
Export sales from the U.S. | Other foreign countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 828 | $ 856 | $ 804 |
GEOGRAPHIC AREAS - Long-Lived A
GEOGRAPHIC AREAS - Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 9,301 | $ 9,324 | $ 9,438 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 8,187 | 8,069 | 8,116 |
Canada | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 460 | 579 | 652 |
Other foreign countries | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 654 | $ 676 | $ 670 |
SELECTED QUARTERLY FINANCIAL130
SELECTED QUARTERLY FINANCIAL INFORMATION (unaudited) - Key Quarterly Financial Data for the Last Two Years (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net sales | $ 1,734 | $ 1,820 | $ 1,807 | $ 1,721 | $ 1,788 | $ 1,915 | $ 1,964 | $ 1,736 | $ 7,082 | $ 7,403 | $ 7,254 | |
Operating income | 217 | 259 | 243 | 200 | 294 | 318 | 400 | 308 | 919 | 1,320 | 634 | |
Earnings from continuing operations before income taxes | 51 | 175 | 157 | 120 | 214 | 237 | 328 | 234 | 503 | 1,013 | 320 | |
Net earnings | 70 | 191 | 144 | 101 | 177 | 1,164 | 291 | 194 | 506 | 1,826 | 563 | |
Net earnings attributable to Weyerhaeuser common shareholders | $ 59 | $ 180 | $ 133 | $ 90 | $ 166 | $ 1,153 | $ 280 | $ 183 | $ 462 | $ 1,782 | $ 540 | |
Basic net earnings per share attributable to Weyerhaeuser common shareholders | $ 0.11 | $ 0.35 | $ 0.26 | $ 0.17 | $ 0.32 | $ 2.17 | $ 0.48 | $ 0.31 | $ 0.89 | $ 3.20 | $ 0.95 | |
Diluted net earnings per share attributable to Weyerhaeuser common shareholders | 0.11 | 0.35 | 0.26 | 0.17 | 0.31 | 2.15 | 0.47 | 0.31 | 0.89 | 3.18 | 0.95 | |
Dividends paid per share | 0.31 | 0.31 | 0.29 | 0.29 | 0.29 | $ 0.29 | 0.22 | 0.22 | 1.20 | $ 1.02 | $ 0.81 | |
Gain on WRECO divestiture | $ 972 | $ 972 | $ 0 | |||||||||
Maximum | ||||||||||||
Market prices - high/low | 32.72 | 32.34 | 33.19 | 37.04 | 36.88 | $ 34.60 | 33.26 | 31.59 | 37.04 | $ 36.88 | ||
Minimum | ||||||||||||
Market prices - high/low | $ 26.73 | $ 26.76 | $ 31.06 | $ 32.74 | $ 31.61 | $ 31.09 | $ 27.48 | $ 28.63 | $ 26.73 | $ 27.48 | ||
Unallocated Items | Coyote Springs Property | Fair Value, Inputs, Level 2 and 3 | ||||||||||||
Non-cash impairment charge | $ 356 |