Weyerhaeuser 8K Reports Second Quarter Results | WY 28 Jul 17



Weyerhaeuser Company										Exhibit 99.2
Q2.2017 Analyst Package
Preliminary results (unaudited)

Consolidated Statement of Operations⁽¹⁾⁽²⁾

in millions	Q1			Q2						Year-to-date
	March 31, 2017			June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Net sales	$	1,693		$	1,808		$	1,655		$	3,501		$	3,060
Cost of products sold	1,272			1,336			1,271			2,608			2,374
Gross margin	421			472			384			893			686
Selling expenses	22			22			22			44			45
General and administrative expenses	87			76			94			163			173
Research and development expenses	4			4			4			8			9
Charges for integration and restructuring, closures and asset impairments	13			151			14			164			125
Other operating costs (income), net	2			62			2			64			(53		)
Operating income from continuing operations	293			157			248			450			387
Equity earnings from joint ventures	—			—			7			—			12
Non-operating pension and other postretirement benefit (costs) credits	(22		)	(8		)	10			(30		)	24
Interest income and other	9			9			10			18			19
Interest expense, net of capitalized interest	(99		)	(100		)	(114		)	(199		)	(209		)
Earnings from continuing operations before income taxes	181			58			161			239			233
Income taxes	(24		)	(34		)	(31		)	(58		)	(42		)
Earnings from continuing operations	157			24			130			181			191
Earnings from discontinued operations, net of income taxes	—			—			38			—			58
Net earnings	157			24			168			181			249
Dividends on preference shares	—			—			(11		)	—			(22		)
Net earnings attributable to Weyerhaeuser common shareholders	$	157		$	24		$	157		$	181		$	227
⁽¹⁾ Discontinued operations as presented herein consist of the operations of our former Cellulose Fibers segment. The corresponding assets and liabilities were classified as discontinued operations on our balance sheet.
⁽²⁾Amounts presented reflect the results of operations acquired in our merger with Plum Creek Timber, Inc., beginning on the merger date of February 19, 2016.

Per Share Information

	Q1			Q2						Year-to-date
	March 31, 2017			June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Earnings per share attributable to Weyerhaeuser common shareholders, basic:
Continuing operations	$	0.21		$	0.03		$	0.16		$	0.24		$	0.25
Discontinued operations	—			—			0.05			—			0.08
Net earnings per share	$	0.21		$	0.03		$	0.21		$	0.24		$	0.33

Earnings per share attributable to Weyerhaeuser common shareholders, diluted:
Continuing operations	$	0.21		$	0.03		$	0.16		$	0.24		$	0.25
Discontinued operations	—			—			0.05			—			0.08
Net earnings per share	$	0.21		$	0.03		$	0.21		$	0.24		$	0.33

Dividends paid per common share	$	0.31		$	0.31		$	0.31		$	0.62		$	0.62

Weighted average shares outstanding (in thousands):
Basic	750,665			752,630			743,140			751,674			687,572
Diluted	754,747			756,451			747,701			755,625			691,060

Common shares outstanding at end of period (in thousands)	751,411			752,711			733,010			752,711			733,010

Page 1 of 9



Weyerhaeuser Company
Q2.2017 Analyst Package
Preliminary results (unaudited)

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)*

in millions	Q1			Q2						Year-to-date
	March 31, 2017			June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Net earnings	$	157		$	24		$	168		$	181		$	249
Earnings from discontinued operations, net of income taxes	—			—			(38		)	—			(58		)
Equity earnings from joint ventures	—			—			(7		)	—			(12		)
Non-operating pension and other postretirement benefit costs (credits)	22			8			(10		)	30			(24		)
Interest income and other	(9		)	(9		)	(10		)	(18		)	(19		)
Interest expense, net of capitalized interest	99			100			114			199			209
Income taxes	24			34			31			58			42
Operating income from continuing operations	293			157			248			450			387
Depreciation, depletion and amortization	133			129			133			262			237
Basis of real estate sold	14			10			13			24			30
Unallocated pension service costs	2			—			—			2			2
Special items	12			210			19			222			93
Adjusted EBITDA*	$	454		$	506		$	413		$	960		$	749

*Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income from continuing operations adjusted for depreciation, depletion, amortization, basis of real estate sold, unallocated pension service costs and special items. Adjusted EBITDA excludes results from joint ventures. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from and is not intended to represent an alternative to our GAAP results.



Special Items Included in Net Earnings (income tax affected)

in millions	Q1		Q2					Year-to-date
	March 31, 2017		June 30, 2017		June 30, 2016			June 30, 2017		June 30, 2016
Net earnings attributable to Weyerhaeuser common shareholders	$	157	$	24	$	157		$	181	$	227
Plum Creek merger- and integration-related costs	10		2		4			12		102
Uruguay impairment	—		147		—			147		—
Gain on sale of non-strategic asset	—		—		—			—		(22		)
Legal expense	—		—		7			—		7
Product remediation	—		31		—			31		—
Countervailing and antidumping duties	—		8		—			8		—
Net earnings attributable to Weyerhaeuser common shareholders before special items	167		212		168			379		314
Earnings from discontinued operations, net of income taxes	—		—		(38		)	—		(58		)
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items	$	167	$	212	$	130		$	379	$	256

per share	Q1		Q2					Year-to-date
	March 31, 2017		June 30, 2017		June 30, 2016			June 30, 2017		June 30, 2016
Net earnings per diluted share attributable to Weyerhaeuser common shareholders	$	0.21	$	0.03	$	0.21		$	0.24	$	0.33
Plum Creek merger- and integration-related costs	0.01		—		—			0.02		0.14
Uruguay impairment	—		0.20		—			0.19		—
Gain on sale of non-strategic asset	—		—		—			—		(0.03		)
Legal expense	—		—		0.01			—		0.01
Product remediation	—		0.04		—			0.04		—
Countervailing and antidumping duties	—		0.01		—			0.01		—
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items	0.22		0.28		0.22			0.50		0.45
Earnings from discontinued operations, net of income taxes	—		—		(0.05		)	—		(0.08		)
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items	$	0.22	$	0.28	$	0.17		$	0.50	$	0.37

Page 2 of 9



Weyerhaeuser Company
Q2.2017 Analyst Package
Preliminary results (unaudited)
Consolidated Balance Sheet

in millions	March 31, 2017		June 30, 2017		December 31, 2016

ASSETS
Current assets:
Cash and cash equivalents	$	455	$	701	$	676
Receivables, less allowances	472		442		390
Receivables for taxes	10		8		84
Inventories	386		349		358
Prepaid expenses and other current assets	142		177		114
Assets held for sale	—		411		—
Total current assets	1,465		2,088		1,622
Property and equipment, net	1,544		1,534		1,562
Construction in progress	230		190		213
Timber and timberlands at cost, less depletion charged to disposals	14,218		13,669		14,299
Minerals and mineral rights, net	317		314		319
Investments in and advances to joint ventures	56		33		56
Goodwill	40		40		40
Deferred tax assets	287		261		293
Other assets	229		246		224
Restricted financial investments held by variable interest entities	615		615		615
Total assets	$	19,001	$	18,990	$	19,243

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	343	$	668	$	281
Accounts payable	227		252		233
Accrued liabilities	452		585		692
Liabilities held for sale	—		19		—
Total current liabilities	1,022		1,524		1,206
Long-term debt	6,263		5,936		6,329
Long-term debt (nonrecourse to the company) held by variable interest entities	511		511		511
Deferred pension and other postretirement benefits	1,287		1,230		1,322
Deposit received from contribution of timberlands to related party	422		419		426
Other liabilities	281		280		269
Total liabilities	9,786		9,900		10,063
Total equity	9,215		9,090		9,180
Total liabilities and equity	$	19,001	$	18,990	$	19,243

Page 3 of 9



Weyerhaeuser Company
Q2.2017 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Cash Flows

in millions	Q1			Q2						Year-to-date
	March 31, 2017			June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Cash flows from operations:
Net earnings	$	157		$	24		$	168		$	181		$	249
Noncash charges (credits) to income:
Depreciation, depletion and amortization	133			129			147			262			289
Basis of real estate sold	14			10			13			24			30
Deferred income taxes, net	3			3			38			6			56
Gains on sales of discontinued operations	—			—			—			—			—
Gains on sales of non-strategic assets	(7		)	(2		)	(10		)	(9		)	(51		)
Pension and other postretirement benefits	32			15			1			47			5
Other noncash charges (credits)	13			156			26			169			34
Change in:
Receivables less allowances	(70		)	(8		)	(43		)	(78		)	(90		)
Receivable for taxes	(36		)	(17		)	25			(53		)	35
Inventories	(28		)	21			60			(7		)	17
Prepaid expenses	(9		)	(4		)	—			(13		)	(1		)
Accounts payable and accrued liabilities	(137		)	192			106			55			36
Pension and postretirement contributions	(22		)	(15		)	(12		)	(37		)	(29		)
Distributions of earnings received from joint ventures	—			—			—			—			5
Other	(8		)	(15		)	(27		)	(23		)	(46		)
Net cash from operations	35			489			492			524			539

Cash flows from investing activities:
Capital expenditures:
Purchases of property and equipment	(52		)	(74		)	(83		)	(126		)	(140		)
Timberlands reforestation costs	(23		)	(13		)	(18		)	(36		)	(34		)
Acquisition of timberlands	—			—			(2		)	—			(8		)
Proceeds from sales of discontinued operations	—			—			—			—			—
Proceeds from sale of assets	8			4			13			12			83
Proceeds from contribution of timberlands to related party	—			—			440			—			440
Distributions of investment received from joint ventures	—			23			3			23			27
Cash and cash equivalents acquired in the merger with Plum Creek	—			—			—			—			9
Other	(1		)	22			(3		)	21			(3		)
Cash from (used in) investing activities	(68		)	(38		)	350			(106		)	374

Cash flows from financing activities:
Cash dividends on common shares	(233		)	(233		)	(228		)	(466		)	(469		)
Cash dividends on preference shares	—			—			(11		)	—			(11		)
Proceeds from issuance of long-term debt	—			—			300			—			1,398
Payments of long-term debt	—			—			(3		)	—			(723		)
Repurchase of common stock	—			—			(831		)	—			(1,629		)
Other	45			28			8			73			1
Cash used in financing activities	(188		)	(205		)	(765		)	(393		)	(1,433		)

Net change in cash and cash equivalents	(221		)	246			77			25			(520		)

Cash and cash equivalents from continuing operations at beginning of period	$	676		$	455		$	411		$	676		1,011
Cash and cash equivalents from discontinued operations at beginning of period	—			—			4			—			1
Cash and cash equivalents at beginning of period	$	676		$	455		$	415		$	676		1,012

Cash and cash equivalents from continuing operations at end of period	$	455		$	701		$	485		$	701		485
Cash and cash equivalents from discontinued operations at end of period	—			—			7			—			7
Cash and cash equivalents at end of period	$	455		$	701		$	492		$	701		$	492

Cash paid (received) during the year for:
Interest, net of amount capitalized	$	120		$	72		$	92		$	192		$	225
Income taxes	$	59		$	47		$	(12	)	$	106		$	(25	)

Page 4 of 9



Weyerhaeuser Company	Total Company Statistics
Q2.2017 Analyst Package
Preliminary results (unaudited)

Selected Total Company Items

in millions	Q1			Q2						Year-to-date
	March 31, 2017			June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Pension and postretirement costs:
Pension and postretirement costs allocated to business segments	$	8		$	7		$	8		$	15		$	15
Pension and postretirement credits not allocated:
Unallocated pension service costs	2			—			—			2			2
Non-operating pension and other postretirement benefit costs (credits)	22			8			(10		)	30			(24		)
Accelerated pension costs included in Plum Creek merger-related costs (not allocated)	—			—			—			—			5
Total pension and postretirement costs (credits) for continuing operations	32			15			(2		)	47			(2		)
Pension and postretirement service costs directly attributable to discontinued operations	—			—			3			—			7
Total company pension and postretirement costs	$	32		$	15		$	1		$	47		$	5

Cash spent for capital expenditures for continuing operations	$	(75	)	$	(87	)	$	(89	)	$	(162	)	$	(140	)

Page 5 of 9



Weyerhaeuser Company								Timberlands Segment
Q2.2017 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations

in millions		Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Sales to unaffiliated customers		$	486		$	469		$	471		$	955		$	858
Intersegment sales		202			163			193			365			415
Total net sales		688			632			664			1,320			1,273
Cost of products sold		519			476			509			995			968
Gross margin		169			156			155			325			305
Selling expenses		1			1			2			2			3
General and administrative expenses		24			23			32			47			60
Research and development expenses		3			4			4			7			8
Charges for integration and restructuring, closures and assets impairments		—			147			—			147			—
Other operating income, net		(7		)	(7		)	(8		)	(14		)	(20		)
Operating income and Net contribution to earnings		$	148		$	(12	)	$	125		$	136		$	254

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions		Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Operating income		$	148		$	(12	)	$	125		$	136		$	254
Depreciation, depletion and amortization		94			87			95			181			165
Special items		—			147			—			147			—
Adjusted EBITDA*		$	242		$	222		$	220		$	464		$	419
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.

Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)

		Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Uruguay impairment		—			(147		)	—			(147		)	—
Selected Segment Items

		Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Total decrease (increase) in working capital ⁽¹⁾		$	(37	)	$	(5	)	$	28		$	(42	)	$	(25	)
Cash spent for capital expenditures		$	(30	)	$	(25	)	$	(31	)	$	(55	)	$	(51	)
⁽¹⁾Working capital does not include cash balances. Represents the change in combined working capital of Timberlands and Real Estate & ENR.

Segment Statistics⁽²⁾⁽³⁾

		Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Third Party Net Sales (millions)	Delivered logs:
	West	$	225		$	227		$	232		$	452		$	447
	South	148			148			154			296			255
	North	27			16			19			43			32
	Other	20			11			7			31			14
	Total delivered logs	420			402			412			822			748
	Stumpage and pay-as-cut timber	12			17			23			29			38
	Products from international operations	19			21			21			40			37
	Recreational and other lease revenue	14			15			8			29			14
	Other revenue	21			14			7			35			21
	Total	$	486		$	469		$	471		$	955		$	858
Delivered Logs Third Party Sales Realizations (per ton)	West	$	104.27		$	105.84		$	98.21		$	105.06		$	99.39
	South	$	34.48		$	34.48		$	35.54		$	34.48		$	35.87
	North	$	59.57		$	63.49		$	65.43		$	60.97		$	62.95
	International	$	28.18		$	29.73		$	23.29		$	28.98		$	18.59
Delivered Logs Third Party Sales Volumes (tons, thousands)	West	2,157			2,143			2,363			4,300			4,496
	South	4,293			4,285			4,340			8,578			7,121
	North	454			253			292			707			502
	International	90			96			89			186			235
	Other	510			292			169			802			338
Fee Harvest Volumes (tons, thousands)	West	2,657			2,652			2,980			5,309			5,781
	South	6,373			6,473			7,061			12,846			12,091
	North	622			383			454			1,005			714
	International	265			319			248			584			547
	Other	371			444			181			815			181
⁽²⁾The Western region includes Washington and Oregon. The Southern region includes Virginia, North Carolina, South Carolina, Florida, Georgia, Alabama, Mississippi, Louisiana, Arkansas, Texas and Oklahoma. The Northern region includes West Virginia, Maine, New Hampshire, Vermont, Michigan, Wisconsin and Montana. Other includes our Canadian operations and managed Twin Creeks operations.
⁽³⁾ Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.

Page 6 of 9



Weyerhaeuser Company							Real Estate, Energy and Natural Resources Segment
Q2.2017 Analyst Package
Preliminary results (unaudited)

Segment Statement of Operations

in millions		Q1.2017		Q2.2017			Q2.2016			YTD.2017			YTD.2016
Sales to unaffiliated customers		$	53	$	46		$	38		$	99		$	77
Intersegment sales		—		—			—			—			—
Total net sales		53		46			38			99			77
Cost of products sold		20		16			19			36			39
Gross margin		33		30			19			63			38
Selling expenses		—		—			—			—			—
General and administrative expenses		7		7			8			14			12
Charges for integration, restructuring, closures and asset impairments		—		—			1			—			1
Other operating costs (income), net		—		—			(2		)	—			(2		)
Operating income		26		23			12			49			27
Equity earnings (loss) from joint ventures⁽¹⁾		—		—			—			—			—
Net contribution to earnings		$	26	$	23		$	12		$	49		$	27

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions		Q1.2017		Q2.2017			Q2.2016			YTD.2017			YTD.2016
Operating income		$	26	$	23		$	12		$	49		$	27
Depreciation, depletion and amortization		3		4			3			7			5
Basis of real estate sold		14		10			13			24			30
Adjusted EBITDA*		$	43	$	37		$	28		$	80		$	62
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.

Selected Segment Items

		Q1.2017		Q2.2017			Q2.2016			YTD.2017			YTD.2016
Cash spent for capital expenditures		$	—	$	(1	)	$	(1	)	$	(1	)	$	(1	)

Segment Statistics

		Q1.2017		Q2.2017			Q2.2016			YTD.2017			YTD.2016
Net Sales (millions)	Real Estate	$	37	$	27		$	26		$	64		$	56
	Energy and natural resources	16		19			12			35			21
	Total	$	53	$	46		$	38		$	99		$	77
Acres sold	Real Estate	13,257		10,003			10,020			23,260			25,245
Price per acre	Real Estate	$	2,403	$	2,714		$	2,555		$	2,537		$	2,210

Page 7 of 9



Weyerhaeuser Company		Wood Products Segment
Q2.2017 Analyst Package
Preliminary results (unaudited)

Segment Statement of Operations
in millions		Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Sales to unaffiliated customers		$	1,154		$	1,293		$	1,146		$	2,447		$	2,125
Intersegment sales		—			—			22			—			44
Total net sales		1,154			1,293			1,168			2,447			2,169
Cost of products sold		926			1,002			957			1,928			1,819
Gross margin		228			291			211			519			350
Selling expenses		21			19			20			40			42
General and administrative expenses		32			32			30			64			57
Research and development expenses		1			—			—			1			1
Charges for integration and restructuring, closures and asset impairments		1			2			4			3			5
Other operating costs (income), net		1			61			1			62			2
Operating income and Net contribution to earnings		$	172		$	177		$	156		$	349		$	243

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions		Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Operating income		$	172		$	177		$	156		$	349		$	243
Depreciation, depletion and amortization		35			36			33			71			63
Special items		—			61			—			61			—
Adjusted EBITDA*		$	207		$	274		$	189		$	481		$	306
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)

		Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Countervailing and antidumping duties		$	—		$	(11	)	$	—		$	(11	)	$	—
Product remediation		—			(50		)	—			(50		)	—
Total		$	—		$	(61	)	$	—		$	(61	)	$	—

Selected Segment Items

		Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Total decrease (increase) in working capital ⁽¹⁾		$	(122	)	$	113		$	35		$	(9	)	$	(97	)
Cash spent for capital expenditures		$	(44	)	$	(61	)	$	(52	)	$	(105	)	$	(81	)
⁽¹⁾ Working capital does not include cash balances.
Segment Statistics

in millions, except for third-party sales realizations		Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Structural Lumber (board feet)	Third party net sales	$	478		$	538		$	498		$	1,016		$	917
	Third party sales realizations	$	413		$	441		$	399		$	427		$	382
	Third party sales volumes ⁽²⁾	1,158			1,218			1,249			2,376			2,401
	Production volumes	1,152			1,146			1,205			2,298			2,334
Engineered Solid Section (cubic feet)	Third party net sales	$	117		$	130		$	115		$	247		$	224
	Third party sales realizations	$	1,881		$	1,979		$	1,922		$	1,931		$	1,946
	Third party sales volumes ⁽²⁾	6.2			6.6			6.0			12.8			11.5
	Production volumes	6.3			6.6			5.9			12.9			11.5
Engineered I-joists (lineal feet)	Third party net sales	$	73		$	85		$	73		$	158		$	139
	Third party sales realizations	$	1,481		$	1,522		$	1,471		$	1,503		$	1,488
	Third party sales volumes ⁽²⁾	49			57			50			106			94
	Production volumes	50			53			46			103			92
Oriented Strand Board (square feet 3/8")	Third party net sales	$	203		$	225		$	182		$	428		$	345
	Third party sales realizations	$	263		$	295		$	240		$	279		$	227
	Third party sales volumes⁽²⁾	769			764			761			1,533			1,520
	Production volumes	758			754			733			1,512			1,482
Softwood Plywood (square feet 3/8")	Third party net sales	$	44		$	47		$	50		$	91		$	85
	Third party sales realizations	$	377		$	380		$	382		$	379		$	352
	Third party sales volumes⁽²⁾	118			123			131			241			241
	Production volumes	97			99			111			196			199
Medium Density Fiberboard (square feet 3/4")	Third party net sales	$	47		$	51		$	47		$	98		$	64
	Third party sales realizations	$	795		$	845		$	772		$	820		$	769
	Third party sales volumes ⁽²⁾	59			60			60			119			83
	Production volumes	56			63			62			119			87
⁽²⁾Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

Page 8 of 9



Weyerhaeuser Company	Unallocated Items
Q2.2017 Analyst Package
Preliminary results (unaudited)

Unallocated items are gains or charges not related to or allocated to an individual operating segment. They include a portion of items such as: share-based compensation, pension and postretirement costs, foreign exchange transaction gains and losses associated with financing and the elimination of intersegment profit in inventory, equity earnings from our timberland venture, and the LIFO reserve.

Contribution to Earnings

in millions	Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Unallocated corporate function expenses	$	(19	)	$	(17	)	$	(24	)	$	(36	)	$	(41	)
Unallocated share-based compensation	(6		)	—			1			(6		)	(1		)
Unallocated pension service costs	(2		)	—			—			(2		)	(2		)
Foreign exchange gains (losses)	(3		)	—			1			(3		)	14
Elimination of intersegment profit in inventory and LIFO	(6		)	(3		)	(2		)	(9		)	(8		)
Gain on sale of non-strategic asset	3			1			8			4			44
Charges for integration and restructuring, closures and asset impairments:
Plum Creek merger- and integration-related costs	(12		)	(2		)	(8		)	(14		)	(118		)
Other restructuring, closures and asset impairments	—			—			(1		)	—			(1		)
Other	(8		)	(10		)	(20		)	(18		)	(24		)
Operating income (loss)	(53		)	(31		)	(45		)	(84		)	(137		)
Equity earnings from joint venture ⁽¹⁾	—			—			7			—			12
Non-operating pension and other postretirement benefit (costs) credits ⁽²⁾	(22		)	(8		)	10			(30		)	24
Interest income and other	9			9			10			18			19
Net contribution to earnings	$	(66	)	$	(30	)	$	(18	)	$	(96	)	$	(82	)
⁽¹⁾2016 results include equity earnings from our Timberland Venture, which was consolidated as a wholly-owned subsidiary effective August 31, 2016.
⁽²⁾ During Q1 2017 we adopted ASU 2017-07. This ASU requires us to show components of pension and other post retirement benefit costs (interest, expected return on plan assets, amortization of actuarial gains or losses, amortization of prior service credits or costs) on the Consolidated Statement of Operations as a line item outside of "Operating income." We reclassified these components for all periods shown above.

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*

in millions	Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Operating income (loss)	$	(53	)	$	(31	)	$	(45	)	$	(84	)	$	(137	)
Depreciation, depletion and amortization	1			2			2			3			4
Unallocated pension service costs	2			—			—			2			2
Special items	12			2			19			14			93
Adjusted EBITDA*	$	(38	)	$	(27	)	$	(24	)	$	(65	)	$	(38	)
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.

Unallocated Special Items Included in Net Contribution to Earnings (Pre-Tax)

	Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Plum Creek merger- and integration-related costs	(12		)	(2		)	(8		)	(14		)	(118		)
Gain on sale of non-strategic asset	—			—			—			—			36
Legal expense	—			—			(11		)	—			(11		)
Total	$	(12	)	$	(2	)	$	(19	)	$	(14	)	$	(93	)

Unallocated Selected Items

	Q1.2017			Q2.2017			Q2.2016			YTD.2017			YTD.2016
Cash spent for capital expenditures	$	(1	)	$	—		$	(5	)	$	(1	)	$	(7	)

Page 9 of 9

Weyerhaeuser (WY) 8-KWeyerhaeuser Reports Second Quarter Results