Weyerhaeuser 8K Reports Third Quarter Results | WY 27 Oct 17



Weyerhaeuser Company										Exhibit 99.2
Q3.2017 Analyst Package
Preliminary results (unaudited)

Consolidated Statement of Operations⁽¹⁾⁽²⁾

in millions	Q2			Q3						Year-to-date
	June 30, 2017			September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Net sales	$	1,808		$	1,872		$	1,709		$	5,373		$	4,769
Cost of products sold	1,336			1,374			1,328			3,982			3,702
Gross margin	472			498			381			1,391			1,067
Selling expenses	22			22			22			66			67
General and administrative expenses	76			75			80			238			253
Research and development expenses	4			4			5			12			14
Charges for integration and restructuring, closures and asset impairments	151			14			16			178			141
Charges for product remediation	50			190			—			240			—
Other operating costs (income), net	12			(12		)	(3		)	2			(56		)
Operating income from continuing operations	157			205			261			655			648
Equity earnings from joint ventures	—			1			9			1			21
Non-operating pension and other postretirement benefit (costs) credits	(8		)	(16		)	13			(46		)	37
Interest income and other	9			11			15			29			34
Interest expense, net of capitalized interest	(100		)	(98		)	(114		)	(297		)	(323		)
Earnings from continuing operations before income taxes	58			103			184			342			417
Income taxes	(34		)	27			(22		)	(31		)	(64		)
Earnings from continuing operations	24			130			162			311			353
Earnings from discontinued operations, net of income taxes	—			—			65			—			123
Net earnings	24			130			227			311			476
Dividends on preference shares	—			—			—			—			(22		)
Net earnings attributable to Weyerhaeuser common shareholders	$	24		$	130		$	227		$	311		$	454
⁽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

	Q2			Q3						Year-to-date
	June 30, 2017			September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Earnings per share attributable to Weyerhaeuser common shareholders, basic:
Continuing operations	$	0.03		$	0.17		$	0.22		$	0.41		$	0.47
Discontinued operations	—			—			0.08			—			0.17
Net earnings per share	$	0.03		$	0.17		$	0.30		$	0.41		$	0.64

Earnings per share attributable to Weyerhaeuser common shareholders, diluted:
Continuing operations	$	0.03		$	0.17		$	0.21		$	0.41		$	0.46
Discontinued operations	—			—			0.09			—			0.18
Net earnings per share	$	0.03		$	0.17		$	0.30		$	0.41		$	0.64

Dividends paid per common share	$	0.31		$	0.31		$	0.31		$	0.93		$	0.93

Weighted average shares outstanding (in thousands):
Basic	752,630			753,535			749,587			752,301			708,395
Diluted	756,451			756,903			754,044			756,058			712,205

Common shares outstanding at end of period (in thousands)	752,711			753,051			747,933			753,051			747,933

Page 1 of 9



Weyerhaeuser Company
Q3.2017 Analyst Package
Preliminary results (unaudited)

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

in millions	Q2			Q3						Year-to-date
	June 30, 2017			September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Net earnings	$	24		$	130		$	227		$	311		$	476
Earnings from discontinued operations, net of income taxes	—			—			(65		)	—			(123		)
Equity earnings from joint ventures	—			(1		)	(9		)	(1		)	(21		)
Non-operating pension and other postretirement benefit costs (credits)	8			16			(13		)	46			(37		)
Interest income and other	(9		)	(11		)	(15		)	(29		)	(34		)
Interest expense, net of capitalized interest	100			98			114			297			323
Income taxes	34			(27		)	22			31			64
Operating income from continuing operations	157			205			261			655			648
Depreciation, depletion and amortization	129			132			138			394			375
Basis of real estate sold	10			24			19			48			49
Unallocated pension service costs	—			1			2			3			4
Special items	210			207			14			429			107
Adjusted EBITDA*	$	506		$	569		$	434		$	1,529		$	1,183

*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	Q2		Q3					Year-to-date
	June 30, 2017		September 30, 2017		September 30, 2016			September 30, 2017		September 30, 2016
Net earnings attributable to Weyerhaeuser common shareholders	$	24	$	130	$	227		$	311	$	454
Plum Creek merger- and integration-related costs	2		3		10			15		112
Uruguay impairment	147		—		—			147		—
Gain on sale of non-strategic asset	—		—		—			—		(22		)
Legal expense	—		—		—			—		7
Countervailing and antidumping duties	8		4		—			12		—
Impairment of non-strategic asset	—		4		—			4		—
Product remediation	31		118		—			149		—
Net earnings attributable to Weyerhaeuser common shareholders before special items	212		259		237			638		551
Earnings from discontinued operations, net of income taxes	—		—		(65		)	—		(123		)
Net earnings from continuing operations attributable to Weyerhaeuser common shareholders before special items	$	212	$	259	$	172		$	638	$	428

per share	Q2		Q3					Year-to-date
	June 30, 2017		September 30, 2017		September 30, 2016			September 30, 2017		September 30, 2016
Net earnings per diluted share attributable to Weyerhaeuser common shareholders	$	0.03	$	0.17	$	0.30		$	0.41	$	0.64
Plum Creek merger- and integration-related costs	—		—		0.02			0.02		0.16
Uruguay impairment	0.20		—		—			0.19		—
Gain on sale of non-strategic asset	—		—		—			—		(0.03		)
Legal expense	—		—		—			—		0.01
Countervailing and antidumping duties	0.01		0.01		—			0.01		—
Impairment of non-strategic asset	—		0.01		—			0.01		—
Product remediation	0.04		0.15		—			0.20		—
Net earnings per diluted share attributable to Weyerhaeuser common shareholders before special items	0.28		0.34		0.32			0.84		0.78
Earnings from discontinued operations, net of income taxes	—		—		(0.09		)	—		(0.18		)
Net earnings from continuing operations per diluted share attributable to Weyerhaeuser common shareholders before special items	$	0.28	$	0.34	$	0.23		$	0.84	$	0.60

Page 2 of 9



Weyerhaeuser Company
Q3.2017 Analyst Package
Preliminary results (unaudited)
Consolidated Balance Sheet

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

ASSETS
Current assets:
Cash and cash equivalents	$	701	$	497	$	676
Receivables, less allowances	442		485		390
Receivables for taxes	8		65		84
Inventories	349		340		358
Prepaid expenses and other current assets	177		130		114
Assets held for sale	411		—		—
Total current assets	2,088		1,517		1,622
Property and equipment, net	1,534		1,534		1,562
Construction in progress	190		225		213
Timber and timberlands at cost, less depletion charged to disposals	13,669		13,627		14,299
Minerals and mineral rights, net	314		312		319
Investments in and advances to joint ventures	33		33		56
Goodwill	40		40		40
Deferred tax assets	261		240		293
Other assets	246		259		224
Restricted financial investments held by variable interest entities	615		615		615
Total assets	$	18,990	$	18,402	$	19,243

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	668	$	62	$	281
Accounts payable	252		259		233
Accrued liabilities	585		702		692
Liabilities held for sale	19		—		—
Total current liabilities	1,524		1,023		1,206
Long-term debt	5,936		5,933		6,329
Long-term debt (nonrecourse to the company) held by variable interest entities	511		511		511
Deferred pension and other postretirement benefits	1,230		1,201		1,322
Deposit received from contribution of timberlands to related party	419		416		426
Other liabilities	280		273		269
Total liabilities	9,900		9,357		10,063
Total equity	9,090		9,045		9,180
Total liabilities and equity	$	18,990	$	18,402	$	19,243

Page 3 of 9



Weyerhaeuser Company
Q3.2017 Analyst Package
Preliminary results (unaudited)
Consolidated Statement of Cash Flows

in millions	Q2			Q3						Year-to-date
	June 30, 2017			September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Cash flows from operations:
Net earnings	$	24		$	130		$	227		$	311		$	476
Noncash charges (credits) to income:
Depreciation, depletion and amortization	129			131			139			393			428
Basis of real estate sold	10			24			19			48			49
Deferred income taxes, net	3			3			40			9			96
Net gains on disposition of assets and operations	(2		)	(6		)	(70		)	(15		)	(121		)
Pension and other postretirement benefits	15			25			—			72			5
Other noncash charges (credits)	156			12			13			181			47
Change in:
Receivables less allowances	(8		)	(35		)	(6		)	(113		)	(96		)
Receivable for taxes	(17		)	(63		)	2			(116		)	37
Inventories	21			11			32			4			49
Prepaid expenses	(4		)	4			(2		)	(9		)	(3		)
Accounts payable and accrued liabilities	192			129			25			184			61
Pension and postretirement contributions	(15		)	(22		)	(54		)	(59		)	(83		)
Distributions of earnings received from joint ventures	—			1			—			1			5
Other	(15		)	(21		)	(18		)	(44		)	(64		)
Net cash from operations	489			323			347			847			886

Cash flows from investing activities:
Capital expenditures:
Purchases of property and equipment	(74		)	(87		)	(120		)	(213		)	(260		)
Timberlands reforestation costs	(13		)	(10		)	(9		)	(46		)	(43		)
Acquisition of timberlands	—			—			(2		)	—			(10		)
Proceeds from sale of assets and operations	4			411			296			423			379
Proceeds from contribution of timberlands to related party	—			—			—			—			440
Distributions of investment received from joint ventures	23			—			7			23			34
Cash and cash equivalents acquired in the merger with Plum Creek	—			—			—			—			9
Other	22			(16		)	45			5			42
Cash from (used in) investing activities	(38		)	298			217			192			591

Cash flows from financing activities:
Cash dividends on common shares	(233		)	(233		)	(231		)	(699		)	(700		)
Cash dividends on preference shares	—			—			(11		)	—			(22		)
Proceeds from issuance of long-term debt	—			225			300			225			1,698
Payments of long-term debt	—			(831		)	—			(831		)	(723		)
Proceeds from borrowing on line of credit	—			100			—			100			—
Payments on line of credit	—			(100		)	—			(100		)	—
Repurchase of common stock	—			—			(374		)	—			(2,003		)
Other	28			14			39			87			40
Cash used in financing activities	(205		)	(825		)	(277		)	(1,218		)	(1,710		)

Net change in cash and cash equivalents	246			(204		)	287			(179		)	(233		)

Cash and cash equivalents from continuing operations at beginning of period	$	455		$	701		$	485		$	676		1,011
Cash and cash equivalents from discontinued operations at beginning of period	—			—			7			—			1
Cash and cash equivalents at beginning of period	$	455		$	701		$	492		$	676		1,012

Cash and cash equivalents from continuing operations at end of period	$	701		$	497		$	769		$	497		$	769
Cash and cash equivalents from discontinued operations at end of period	—			—			10			—			10
Cash and cash equivalents at end of period	$	701		$	497		$	779		$	497		$	779

Cash paid (received) during the period for:
Interest, net of amount capitalized	$	72		$	123		$	142		$	315		$	367
Income taxes	$	47		$	23		$	(1	)	$	129		$	(26	)

Page 4 of 9



Weyerhaeuser Company	Total Company Statistics
Q3.2017 Analyst Package
Preliminary results (unaudited)

Selected Total Company Items

in millions	Q2			Q3						Year-to-date
	June 30, 2017			September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016
Pension and postretirement costs:
Pension and postretirement costs allocated to business segments	$	7		$	8		$	8		$	23		$	23
Pension and postretirement credits not allocated:
Unallocated pension service costs	—			1			2			3			4
Non-operating pension and other postretirement benefit costs (credits)	8			16			(13		)	46			(37		)
Accelerated pension costs included in Plum Creek merger-related costs (not allocated)	—			—			—			—			5
Total pension and postretirement costs (credits) for continuing operations	15			25			(3		)	72			(5		)
Pension and postretirement service costs directly attributable to discontinued operations	—			—			3			—			10
Total company pension and postretirement costs	$	15		$	25		$	—		$	72		$	5

Cash spent for capital expenditures for continuing operations	$	(87	)	$	(97	)	$	(100	)	$	(259	)	$	(240	)

Page 5 of 9



Weyerhaeuser Company								Timberlands Segment
Q3.2017 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations

in millions		Q2.2017			Q3.2017			Q3.2016			YTD.2017				YTD.2016
Sales to unaffiliated customers		$	469		$	491		$	484		$	1,446			$	1,342
Intersegment sales		163			179			216			544				631
Total net sales		632			670			700			1,990				1,973
Cost of products sold		476			517			559			1,512				1,527
Gross margin		156			153			141			478			��	446
Selling expenses		1			1			1			3				4
General and administrative expenses		23			24			20			71				80
Research and development expenses		4			3			4			10				12
Charges for integration and restructuring, closures and assets impairments		147			—			—			147				—
Other operating income, net		(7		)	(6		)	(6		)	(20		)		(26		)
Operating income and Net contribution to earnings		$	(12	)	$	131		$	122		$	267			$	376

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

in millions		Q2.2017			Q3.2017			Q3.2016			YTD.2017				YTD.2016
Operating income		$	(12	)	$	131		$	122		$	267			$	376
Depreciation, depletion and amortization		87			89			101			270				266
Special items		147			—			—			147				—
Adjusted EBITDA*		$	222		$	220		$	223		$	684			$	642
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.

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

		Q2.2017			Q3.2017			Q3.2016			YTD.2017				YTD.2016
Uruguay impairment		$	(147	)	$	—		$	—		$	(147	)		$	—
Selected Segment Items

		Q2.2017			Q3.2017			Q3.2016			YTD.2017				YTD.2016
Total decrease (increase) in working capital ⁽¹⁾		$	(5	)	$	(3	)	$	(15	)	$	(45	)		$	(40	)
Cash spent for capital expenditures		$	(25	)	$	(24	)	$	(26	)	$	(79	)		$	(77	)
⁽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⁾

		Q2.2017			Q3.2017			Q3.2016			YTD.2017				YTD.2016
Third Party Net Sales (millions)	Delivered logs:
	West	$	227		$	221		$	217		$	673			$	664
	South	148			155			160			451				415
	North	16			25			29			68				61
	Other	11			17			11			48				25
	Total delivered logs	402			418			417			1,240				1,165
	Stumpage and pay-as-cut timber	17			23			24			52				62
	Products from international operations	21			23			21			63				58
	Recreational and other lease revenue	15			16			15			45				29
	Other revenue	14			11			7			46				28
	Total	$	469		$	491		$	484		$	1,446			$	1,342
Delivered Logs Third Party Sales Realizations (per ton)	West	$	105.84		$	116.03		$	98.18		$	108.43			$	98.99
	South	$	34.48		$	34.24		$	35.27		$	34.40			$	35.64
	North	$	63.49		$	59.02		$	59.17		$	60.24			$	61.06
Delivered Logs Third Party Sales Volumes (tons, thousands)	West	2,143			1,910			2,209			6,210				6,705
	South	4,285			4,527			4,538			13,105				11,659
	North	253			428			503			1,135				1,005
	Other	292			424			263			1,226				601
Fee Harvest Volumes (tons, thousands)	West	2,652			2,230			2,744			7,539				8,525
	South	6,473			6,953			6,992			19,799				19,083
	North	383			565			678			1,570				1,392
	Other	444			569			191			1,384				372
⁽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
Q3.2017 Analyst Package
Preliminary results (unaudited)

Segment Statement of Operations

in millions		Q2.2017			Q3.2017			Q3.2016		YTD.2017			YTD.2016
Sales to unaffiliated customers		$	46		$	82		$	48	$	181		$	125
Intersegment sales		—			—			—		—			—
Total net sales		46			82			48		181			125
Cost of products sold		16			31			26		67			65
Gross margin		30			51			22		114			60
Selling expenses		—			—			—		—			—
General and administrative expenses		7			6			7		20			19
Charges for integration, restructuring, closures and asset impairments		—			—			—		—			1
Other operating costs (income), net		—			(1		)	1		(1		)	(1		)
Operating income		23			46			14		95			41
Equity earnings (loss) from joint ventures⁽¹⁾		—			1			1		1			1
Net contribution to earnings		$	23		$	47		$	15	$	96		$	42
⁽¹⁾Equity earnings (loss) from joint ventures attributed to the Real Estate and ENR segment are generated from our investments in our real estate development ventures.

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

in millions		Q2.2017			Q3.2017			Q3.2016		YTD.2017			YTD.2016
Operating income		$	23		$	46		$	14	$	95		$	41
Depreciation, depletion and amortization		4			4			4		11			9
Basis of real estate sold		10			24			19		48			49
Adjusted EBITDA*		$	37		$	74		$	37	$	154		$	99
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.

Selected Segment Items

		Q2.2017			Q3.2017			Q3.2016		YTD.2017			YTD.2016
Cash spent for capital expenditures		$	(1	)	$	(1	)	$	—	$	(2	)	$	(1	)

Segment Statistics

		Q2.2017			Q3.2017			Q3.2016		YTD.2017			YTD.2016
Net Sales (millions)	Real Estate	$	27		$	64		$	31	$	128		$	87
	Energy and natural resources	19			18			17		53			38
	Total	$	46		$	82		$	48	$	181		$	125
Acres sold	Real Estate	10,003			35,749			12,853		59,009			38,098
Price per acre	Real Estate	$	2,714		$	1,784		$	2,354	$	2,081		$	2,271

Page 7 of 9



Weyerhaeuser Company		Wood Products Segment
Q3.2017 Analyst Package
Preliminary results (unaudited)
Segment Statement of Operations
in millions		Q2.2017			Q3.2017			Q3.2016			YTD.2017			YTD.2016
Sales to unaffiliated customers		$	1,293		$	1,299		$	1,177		$	3,746		$	3,302
Intersegment sales		—			—			17			—			61
Total net sales		1,293			1,299			1,194			3,746			3,363
Cost of products sold		1,002			1,005			980			2,933			2,799
Gross margin		291			294			214			813			564
Selling expenses		19			20			21			60			63
General and administrative expenses		32			30			24			94			81
Research and development expenses		—			1			1			2			2
Charges for integration and restructuring, closures and asset impairments		2			8			1			11			6
Charges for product remediation		50			190			—			240			—
Other operating costs (income), net		11			5			(3		)	17			(1		)
Operating income and Net contribution to earnings		$	177		$	40		$	170		$	389		$	413

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization*
in millions		Q2.2017			Q3.2017			Q3.2016			YTD.2017			YTD.2016
Operating income		$	177		$	40		$	170		$	389		$	413
Depreciation, depletion and amortization		36			37			33			108			96
Special items		61			201			—			262			—
Adjusted EBITDA*		$	274		$	278		$	203		$	759		$	509
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.
Segment Special Items Included in Net Contribution to Earnings (Pre-Tax)
		Q2.2017			Q3.2017			Q3.2016			YTD.2017			YTD.2016
Countervailing and antidumping duties		$	(11	)	$	(5	)	$	—		$	(16	)	$	—
Impairment on non-strategic asset		—			(6		)	—			(6		)	—
Product remediation		(50		)	(190		)	—			(240		)
Total		$	(61	)	$	(201	)	$	—		$	(262	)	$	—

Selected Segment Items
		Q2.2017			Q3.2017			Q3.2016			YTD.2017			YTD.2016
Total decrease (increase) in working capital ⁽¹⁾		$	113		$	150		$	49		$	141		$	(48	)
Cash spent for capital expenditures		$	(61	)	$	(71	)	$	(71	)	$	(176	)	$	(152	)
⁽¹⁾ Working capital does not include cash balances.
Segment Statistics
in millions, except for third-party sales realizations		Q2.2017			Q3.2017			Q3.2016			YTD.2017			YTD.2016
Structural Lumber (board feet)	Third party net sales	$	538		$	525		$	495		$	1,541		$	1,412
	Third party sales realizations	$	441		$	448		$	401		$	434		$	389
	Third party sales volumes ⁽²⁾	1,218			1,172			1,233			3,548			3,634
	Production volumes	1,146			1,093			1,130			3,391			3,464
Engineered Solid Section (cubic feet)	Third party net sales	$	130		$	131		$	119		$	378		$	343
	Third party sales realizations	$	1,979		$	2,047		$	1,916		$	1,970		$	1,935
	Third party sales volumes ⁽²⁾	6.6			6.4			6.2			19.2			17.7
	Production volumes	6.6			6.4			5.7			19.3			17.2
Engineered I-joists (lineal feet)	Third party net sales	$	85		$	93		$	79		$	251		$	218
	Third party sales realizations	$	1,522		$	1,529		$	1,475		$	1,512		$	1,483
	Third party sales volumes ⁽²⁾	57			60			53			166			147
	Production volumes	53			58			49			161			141
Oriented Strand Board (square feet 3/8")	Third party net sales	$	225		$	243		$	199		$	671		$	544
	Third party sales realizations	$	295		$	328		$	256		$	295		$	237
	Third party sales volumes⁽²⁾	764			741			776			2,274			2,296
	Production volumes	754			744			777			2,256			2,259
Softwood Plywood (square feet 3/8")	Third party net sales	$	47		$	45		$	48		$	136		$	133
	Third party sales realizations	$	380		$	386		$	378		$	381		$	369
	Third party sales volumes⁽²⁾	123			117			127			358			368
	Production volumes	99			88			105			284			304
Medium Density Fiberboard (square feet 3/4")	Third party net sales	$	51		$	48		$	49		$	146		$	113
	Third party sales realizations	$	845		$	821		$	761		$	820		$	765
	Third party sales volumes ⁽²⁾	60			58			64			177			147
	Production volumes	63			63			68			182			155
⁽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
Q3.2017 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	Q2.2017			Q3.2017			Q3.2016			YTD.2017			YTD.2016
Unallocated corporate function expenses	$	(17	)	$	(19	)	$	(21	)	$	(55	)	$	(62	)
Unallocated share-based compensation	—			(1		)	(4		)	(7		)	(5		)
Unallocated pension service costs	—			(1		)	(2		)	(3		)	(4		)
Foreign exchange gains (losses)	—			3			(1		)	—			13
Elimination of intersegment profit in inventory and LIFO	(3		)	3			2			(6		)	(6		)
Gain on sale of non-strategic asset	1			4			1			8			45
Charges for integration and restructuring, closures and asset impairments:
Plum Creek merger- and integration-related costs	(2		)	(6		)	(14		)	(20		)	(132		)
Other restructuring, closures and asset impairments	—			—			(1		)	—			(2		)
Other	(10		)	5			(5		)	(13		)	(29		)
Operating income (loss)	(31		)	(12		)	(45		)	(96		)	(182		)
Equity earnings from joint venture ⁽¹⁾	—			—			8			—			20
Non-operating pension and other postretirement benefit (costs) credits ⁽²⁾	(8		)	(16		)	13			(46		)	37
Interest income and other	9			11			15			29			34
Net contribution to earnings	$	(30	)	$	(17	)	$	(9	)	$	(113	)	$	(91	)
⁽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	Q2.2017			Q3.2017			Q3.2016			YTD.2017			YTD.2016
Operating income (loss)	$	(31	)	$	(12	)	$	(45	)	$	(96	)	$	(182	)
Depreciation, depletion and amortization	2			2			—			5			4
Unallocated pension service costs	—			1			2			3			4
Special items	2			6			14			20			107
Adjusted EBITDA*	$	(27	)	$	(3	)	$	(29	)	$	(68	)	$	(67	)
*See definition of Adjusted EBITDA (a non-GAAP measure) on page 2.

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

	Q2.2017			Q3.2017			Q3.2016			YTD.2017			YTD.2016
Plum Creek merger- and integration-related costs	(2		)	(6		)	(14		)	(20		)	(132		)
Gain on sale of non-strategic asset	—			—			—			—			36
Legal expense	—			—			—			—			(11		)
Total	$	(2	)	$	(6	)	$	(14	)	$	(20	)	$	(107	)

Unallocated Selected Items

	Q2.2017			Q3.2017			Q3.2016			YTD.2017			YTD.2016
Cash spent for capital expenditures	$	—		$	(1	)	$	(3	)	$	(2	)	$	(10	)

Page 9 of 9

Weyerhaeuser (WY) 8-KWeyerhaeuser Reports Third Quarter Results