Weyerhaeuser (WY) 10-Q 26 Apr 19 2019 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2019	Apr. 22, 2019
Document Information [Line Items]
Entity Registrant Name	WEYERHAEUSER CO
Trading Symbol	WY
Entity Central Index Key	0000106535
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		744,786,160

CONSOLIDATED STATEMENT OF OPERA

CONSOLIDATED STATEMENT OF OPERATIONS - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net sales	$ 1,643	$ 1,865
Costs of sales	1,322	1,348
Gross margin	321	517
Selling expenses	21	23
General and administrative expenses	89	78
Research and development expenses	1	2
Other operating costs, net (Note 15)	36	10
Operating income	174	404
Non-operating pension and other postretirement benefit costs	(470)	(24)
Interest income and other	10	12
Interest expense, net of capitalized interest	(107)	(93)
Earnings (loss) before income taxes	(393)	299
Income taxes (Note 18)	104	(30)
Net earnings (loss)	$ (289)	$ 269
Earnings (loss) per share, basic and diluted (Note 5)	$ (0.39)	$ 0.35
Weighted average shares outstanding (in thousands) (Note 5):
Basic	746,603	756,815
Diluted	746,603	759,462

CONSOLIDATED STATEMENT OF COMPR

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Net earnings (loss)	$ (289)	$ 269
Other comprehensive income (loss):
Foreign currency translation adjustments	14	(15)
Changes in unamortized actuarial loss, net of tax expense of $111 and $19	344	54
Changes in unamortized net prior service credit, net of tax benefit of $0 and $0	0	(1)
Total other comprehensive income	358	38
Total comprehensive income	$ 69	$ 307

CONSOLIDATED STATEMENT OF COM_2

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Changes in unamortized actuarial loss, tax expense (benefit)	$ 111	$ 19
Changes in unamortized net prior service credit, tax expense (benefit)	$ 0	$ 0

CONSOLIDATED BALANCE SHEET

CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 259	$ 334
Receivables, less discounts and allowances of $1 and $1	398	337
Receivables for taxes	163	137
Inventories (Note 5)	451	389
Prepaid expenses and other current assets	141	152
Current restricted financial investments held by variable interest entities (Note 6)	362	253
Total current assets	1,774	1,602
Property and equipment, less accumulated depreciation of $3,424 and $3,376	1,917	1,857
Construction in progress	102	136
Timber and timberlands at cost, less depletion	12,586	12,671
Minerals and mineral rights, less depletion	291	294
Deferred tax assets	18	15
Other assets	444	312
Restricted financial investments held by variable interest entities (Note 6)	0	362
Total assets	17,132	17,249
LIABILITIES
Current maturities of long-term debt (Note 9)	0	500
Current debt (nonrecourse to the company) held by variable interest entities (Note 6)	302	302
Borrowings on line of credit (Note 9)	245	425
Accounts payable	243	222
Accrued liabilities (Note 8)	411	490
Total current liabilities	1,201	1,939
Long-term debt (Note 9)	6,156	5,419
Deferred tax liabilities	34	43
Deferred pension and other postretirement benefits (Note 7)	542	527
Other liabilities	398	275
Total liabilities	8,331	8,203
Commitments and contingencies (Note 11)
EQUITY
Common shares: $1.25 par value; authorized 1,360 million shares; issued and outstanding: 744,767 thousand shares at March 31, 2019 and 746,391 thousand shares at December 31, 2018	931	933
Other capital	8,121	8,172
Retained earnings	543	1,093
Accumulated other comprehensive loss (Note 12)	(794)	(1,152)
Total equity	8,801	9,046
Total liabilities and equity	$ 17,132	$ 17,249

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Receivables, allowances	$ 1	$ 1
Property and equipment, accumulated depreciation	$ 3,424	$ 3,376
Common shares, par value	$ 1.25	$ 1.25
Common shares, authorized	1,360,000,000	1,360,000,000
Common shares, issued	744,767,014	746,390,932
Common shares, outstanding	744,767,014	746,390,932

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operations:
Net earnings (loss)	$ (289)	$ 269
Noncash charges to earnings:
Depreciation, depletion and amortization	123	120
Basis of real estate sold	48	12
Deferred income taxes, net	(123)	10
Pension and other postretirement benefits (Note 7)	478	34
Share-based compensation expense	9	9
Change in:
Receivables, less allowances	(77)	(83)
Receivables and payables for taxes	(31)	5
Inventories	(60)	(66)
Prepaid expenses	(5)	(5)
Accounts payable and accrued liabilities	(82)	(173)
Pension and postretirement benefit contributions and payments	(14)	(16)
Other	9	20
Net cash from (used in) operations	(14)	136
Cash flows from investing activities:
Capital expenditures for property and equipment	(41)	(61)
Capital expenditures for timberlands reforestation	(18)	(20)
Proceeds from note receivable held by variable interest entities (Note 6)	253	0
Other	18	5
Net cash from (used in) investing activities	212	(76)
Cash flows from financing activities:
Cash dividends on common shares	(254)	(242)
Proceeds from issuance of long-term debt (Note 9)	739	0
Payments on long-term debt (Note 9)	(512)	(62)
Proceeds from borrowings on line of credit (Note 10)	245	0
Payments on line of credit (Note 9)	(425)	0
Proceeds from exercise of stock options	2	25
Repurchases of common shares (Note 4)	(60)	0
Other	(8)	(7)
Net cash used in financing activities	(273)	(286)
Net change in cash and cash equivalents	(75)	(226)
Cash and cash equivalents at beginning of period	334	824
Cash and cash equivalents at end of period	259	598
Cash paid during the period for:
Interest, net of amount capitalized of $1 and $3	127	105
Income taxes	$ 50	$ 17

CONSOLIDATED STATEMENT OF CAS_2

CONSOLIDATED STATEMENT OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest, amount capitalized	$ 1	$ 3

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Statement - USD ($) $ in Millions	Total	Common shares:	Other capital:	Retained earnings:	Accumulated other comprehensive loss:	Total equity:
Balance at beginning of period at Dec. 31, 2017		$ 944	$ 8,439	$ 1,078	$ (1,562)
Issued for exercised stock options and vested restricted stock units		2	24
Repurchases of common shares (Note 4)		0	0
Shared-based compensation			9
Other transactions, net			(6)
Net earnings (loss)	$ 269			269
Dividends on common shares				(242)
Adjustments related to accounting pronouncements				260
Other comprehensive loss	$ 38				(224)
Balance at end of period at Mar. 31, 2018		946	8,466	1,365	(1,786)	$ 8,991
Dividends paid per common share	$ 0.32
Balance at beginning of period at Dec. 31, 2018	$ 9,046	933	8,172	1,093	(1,152)
Issued for exercised stock options and vested restricted stock units		1	2
Repurchases of common shares (Note 4)		(3)	(57)
Shared-based compensation			9
Other transactions, net			(5)
Net earnings (loss)	(289)			(289)
Dividends on common shares				(254)
Adjustments related to accounting pronouncements				(7)
Other comprehensive loss	358				358
Balance at end of period at Mar. 31, 2019	$ 8,801	$ 931	$ 8,121	$ 543	$ (794)	$ 8,801
Dividends paid per common share	$ 0.34

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	BASIS OF PRESENTATION Our consolidated financial statements provide an overall view of our results of operations and financial condition. They include our accounts and the accounts of entities we control, including: • majority-owned domestic and foreign subsidiaries and • variable interest entities in which we are the primary beneficiary. They do not include our intercompany transactions and accounts, which are eliminated. Throughout these Notes to Consolidated Financial Statements, unless specified otherwise, references to “Weyerhaeuser,” “we,” “the company” and “our” refer to the consolidated company. The accompanying unaudited Consolidated Financial Statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Except as otherwise disclosed in these Notes to Consolidated Financial Statements, such adjustments are of a normal, recurring nature. The Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. Certain information and footnote disclosures normally included in our annual Consolidated Financial Statements have been condensed or omitted. These quarterly Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2018 . Results of operations for interim periods should not necessarily be regarded as indicative of the results that may be expected for the full year.

BUSINESS SEGMENTS

BUSINESS SEGMENTS	3 Months Ended
	Mar. 31, 2019
BUSINESS SEGMENTS	BUSINESS SEGMENTS We are principally engaged in growing and harvesting timber; manufacturing, distributing, and selling products made from trees; maximizing the value of every acre we own through the sale of higher and better use (HBU) properties; and monetizing reserves of minerals, oil, gas, coal, and other natural resources on our timberlands. Our business segments are categorized based primarily on products and services which includes: • Timberlands – logs, timber and leased recreational access; • Real Estate & ENR – sales of HBU properties, rights to explore for and extract hard minerals, construction materials, oil and gas production, wind, solar and coal; and • Wood Products – softwood lumber, engineered wood products, structural panels, medium density fiberboard and building materials distribution. A reconciliation of our business segment information to the respective information in the Consolidated Statement of Operations is as follows: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 Sales to unaffiliated customers: Timberlands (1) $ 431 $ 490 Real Estate & ENR 118 51 Wood Products (1) 1,094 1,324 1,643 1,865 Intersegment sales: Timberlands (1) 125 142 Total sales 1,768 2,007 Intersegment eliminations (1) (125 ) (142 ) Total $ 1,643 $ 1,865 Net contribution to earnings: Timberlands $ 120 $ 189 Real Estate & ENR 55 25 Wood Products 69 270 244 484 Unallocated items (2) (530 ) (92 ) Net contribution to earnings (loss) (286 ) 392 Interest expense, net of capitalized interest (107 ) (93 ) Earnings (loss) before income taxes (393 ) 299 Income taxes 104 (30 ) Net earnings (loss) $ (289 ) $ 269 (1) In January 2019, we changed the way we report our Canadian Forestlands operations, which are primarily operated to supply Weyerhaeuser’s Canadian Wood Products manufacturing facilities. As a result, we no longer report related intersegment sales in the Timberlands segment and we will now record the minimal associated third-party log sales in the Wood Products segment. These collective transactions did not contribute any earnings to the Timberlands segment. We have conformed prior period presentation with the current period. (2) Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 31, 2019
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION A reconciliation of revenue recognized by our major products: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 Net sales to unaffiliated customers: Timberlands Segment Delivered logs (1) : West Domestic sales $ 101 $ 137 Export grade sales 104 129 Subtotal West 205 266 South 159 157 North 29 25 Subtotal delivered logs sales 393 448 Stumpage and pay-as-cut timber 9 15 Recreational and other lease revenue 15 14 Other (2) 14 13 Net sales attributable to Timberlands segment 431 490 Real Estate & ENR Segment Real estate 96 34 Energy and natural resources 22 17 Net sales attributable to Real Estate & ENR segment 118 51 Wood Products Segment Structural lumber 444 569 Oriented strand board 160 232 Engineered solid section 116 129 Engineered I-joists 70 78 Softwood plywood 44 50 Medium density fiberboard 38 43 Complementary building products 137 137 Other (3) 85 86 Net sales attributable to Wood Products segment 1,094 1,324 Total net sales $ 1,643 $ 1,865 (1) In January 2019, we changed the way we report our Canadian Forestlands operations. We no longer report intersegment sales related to these operations in the Timberlands segment and now record the minimal associated third-party log sales within the Wood Products segment. Refer to Note 2: Business Segments for additional details. (2) Other Timberlands sales include seeds and seedlings from our nursery operations and chips. (3) Other Wood Products sales include chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations.

NET EARNINGS PER SHARE AND SHAR

NET EARNINGS PER SHARE AND SHARE REPURCHASES	3 Months Ended
	Mar. 31, 2019
NET EARNINGS PER SHARE AND SHARE REPURCHASES	NET EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES Our basic and diluted earnings (loss) per share were: • $(0.39) during first quarter 2019 and • $0.35 during first quarter 2018 . Basic earnings (loss) per share is net earnings (loss) 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 (loss) per share is net earnings (loss) divided by the sum of the weighted average number of our outstanding common shares and the effect of our outstanding dilutive potential common shares. QUARTER ENDED SHARES IN THOUSANDS MARCH 2019 MARCH 2018 Weighted average common shares outstanding – basic 746,603 756,815 Dilutive potential common shares: Stock options — 1,682 Restricted stock units — 569 Performance share units — 396 Total effect of outstanding dilutive potential common shares — 2,647 Weighted average common shares outstanding – dilutive 746,603 759,462 We use the treasury stock method to calculate the dilutive 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. Potential Shares Not Included in the Computation of Diluted Earnings per Share 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. QUARTER ENDED SHARES IN THOUSANDS MARCH 2019 MARCH 2018 Stock options 2,862 1,301 Restricted stock units 383 — Performance share units 1,356 744 Share Repurchase Program On February 7, 2019, our board of directors approved and announced a new share repurchase program (the 2019 Repurchase Program) under which we are authorized to repurchase up to $500 million of outstanding shares. On the same day, the board terminated the remaining repurchase authorization under the share repurchase program approved by the board in November 2015. During first quarter 2019 , we repurchased over 2.3 million common shares for approximately $60 million under the 2019 Repurchase Program. As of March 31, 2019 , we had remaining authorization of $440 million for future share repurchases. We did not repurchase shares during first quarter 2018 . All common share purchases under the share repurchase program are expected to be made in open-market transactions. We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability for repurchases that have not yet been settled as of period end. There were no unsettled repurchases as of March 31, 2019 or December 31, 2018 .

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2019
INVENTORIES	INVENTORIES Inventories include raw materials, work-in-process, finished goods, as well as materials and supplies. DOLLAR AMOUNTS IN MILLIONS MARCH 31, DECEMBER 31, LIFO inventories: Logs $ 15 $ 11 Lumber, plywood, panels and fiberboard 83 75 Other products 12 10 FIFO or moving average cost inventories: Logs 58 35 Lumber, plywood, panels, fiberboard and engineered wood products 105 86 Other products 86 83 Materials and supplies 92 89 Total $ 451 $ 389 LIFO – the last-in, first-out method – applies to major inventory products held at our U.S. locations. The FIFO – the first-in, first-out method – or moving average cost methods apply to the balance of our U.S. raw material and product inventories, all material and supply inventories and all foreign inventories. If we used FIFO for all LIFO inventories, our stated inventories would have been higher by $79 million as of March 31, 2019 , and December 31, 2018 .

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	3 Months Ended
	Mar. 31, 2019
VARIABLE INTEREST ENTITIES	VARIABLE INTEREST ENTITIES From 2002 through 2004, we sold certain nonstrategic timberlands. As a result of these sales, buyer-sponsored and monetization variable interest entities, or special purpose entities (SPEs), were formed. We are the primary beneficiary and consolidate the assets and liabilities of the SPEs involved in these transactions. The assets of the buyer-sponsored SPEs are financial investments which consist of bank guarantees. These bank guarantees are in turn backed by bank notes, which are the liabilities of the monetization SPEs. Interest earned from the financial investments within the buyer-sponsored SPEs is used to pay interest accrued on the corresponding monetization SPE’s note. During first quarter 2019, we received $253 million in proceeds related to our buyer-sponsored SPEs at maturity. During fourth quarter 2018, we paid $209 million related to liabilities from our monetized SPEs at maturity. The financial investment related to our remaining buyer-sponsored SPE is $362 million , which is scheduled to mature in first quarter 2020. We have classified this in current assets on our Consolidated Balance Sheet . The note related to our remaining monetization SPE is $302 million and is scheduled to mature in third quarter of 2019. We have classified this in current liabilities on our Consolidated Balance Sheet .

PENSION AND OTHER POSTRETIREMEN

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS	3 Months Ended
	Mar. 31, 2019
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS	PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS The components of net periodic benefit cost are: PENSION QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 Service cost $ 8 $ 10 Interest cost 43 60 Expected return on plan assets (62 ) (100 ) Amortization of actuarial loss 30 61 Amortization of prior service cost 1 1 Settlement charge 455 — Total net periodic benefit cost - pension $ 475 $ 32 OTHER POSTRETIREMENT BENEFITS QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 Interest cost $ 2 $ 2 Amortization of actuarial loss 2 2 Amortization of prior service credit (1 ) (2 ) Total net periodic benefit cost - other postretirement benefits $ 3 $ 2 For the periods presented, service cost is included in "Costs of sales," "Selling expenses," and "General and administrative expenses". The remaining components are included in "Non-operating pension and other postretirement benefit costs." Refer to the Consolidated Statement of Operations . Fair Value of Pension Plan Assets and Obligations In our year-end reporting process, we estimate the fair value of pension plan assets based upon the information available at that time. For certain assets, primarily private equity funds, the information available consists of net asset values as of an interim date, cash flows between the interim date and the end of the year and market events. We update the year-end estimated fair value of pension plan assets in the second quarter of each year to incorporate final net asset values reflected in financial statements received after we have filed our Annual Report on Form 10-K. At that time, we typically also incorporate adjusted census data and record an adjustment to year-to-date non-operating pension and other postretirement benefit costs to reflect the updated information. Historically, these adjustments have not been material. Actions to Reduce Pension Plan Obligations As part of our continued efforts to reduce pension plan obligations, as announced in 2018, we transferred approximately $1.5 billion of U.S. qualified pension plan assets and liabilities to an insurance company through the purchase of a group annuity contract in January 2019. In connection with this transaction, we recorded a noncash pretax preliminary settlement charge of $455 million during first quarter 2019, accelerating the recognition of previously unrecognized losses in “Accumulated other comprehensive loss”, that would have otherwise been recorded in subsequent periods. This settlement charge will be adjusted in the second quarter once we finalize the prior year-end fair values of pension plan assets and obligations. Refer to “Fair Value of Pension Plan Assets and Obligations” above. The settlement triggered a remeasurement of plan assets and liabilities, and accordingly, we have updated the discount rate used to measure our projected benefit obligation for the U.S. qualified pension plan as of January 31, 2019 and to calculate the related net periodic benefit cost for the remainder of 2019 to 4.30 percent from 4.40 percent as of December 31, 2018. All other assumptions remain unchanged. Expected Funding and Benefit Payments We do not anticipate being required to make a contribution to our U.S. qualified pension plan for 2019 . For all other U.S. and Canadian pension and postretirement plans we expect to contribute or make benefit payments of approximately $40 million in 2019 .

ACCRUED LIABILITIES

ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2019
ACCRUED LIABILITIES	ACCRUED LIABILITIES Accrued liabilities were comprised of the following: DOLLAR AMOUNTS IN MILLIONS MARCH 31, DECEMBER 31, Compensation and employee benefit costs $ 143 $ 192 Current portion of lease liabilities (Note 14) 28 — Customer rebates, volume discounts and deferred income 65 99 Interest 66 109 Taxes payable 28 30 Other 81 60 Total $ 411 $ 490

LONG-TERM DEBT AND LINES OF CRE

LONG-TERM DEBT AND LINES OF CREDIT	3 Months Ended
	Mar. 31, 2019
LONG-TERM DEBT AND LINES OF CREDIT	LONG-TERM DEBT AND LINES OF CREDIT In February 2019, we issued $750 million of 4.00 percent notes due in November 2029. The net proceeds after deducting the discount, underwriting fees and issuance costs were $739 million . In March 2019, a portion of the net proceeds were used to redeem our outstanding $500 million 7.38 percent note due in October 2019. A pretax charge of $12 million was included in "Interest expense, net of capitalized interest" in the Consolidated Statement of Operations in first quarter 2019, for make-whole premiums, unamortized debt issuance costs and unamortized debt discounts in connection with the early extinguishment of the $500 million note. As of March 31, 2019 and December 31, 2018, we had $245 million and $ 425 million , respectively, of outstanding borrowings on our $1.5 billion five-year senior unsecured revolving credit facility. This credit facility expires in March 2022 .

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2019
FAIR VALUE OF FINANCIAL INSTRUMENTS	FAIR VALUE OF FINANCIAL INSTRUMENTS The estimated fair values and carrying values of our long-term debt and line of credit consisted of the following: MARCH 31, DECEMBER 31, DOLLAR AMOUNTS IN MILLIONS CARRYING VALUE FAIR VALUE (LEVEL 2) CARRYING VALUE FAIR VALUE (LEVEL 2) Long-term debt (including current maturities) and line of credit (1) : Fixed rate $ 5,931 $ 6,775 $ 5,694 $ 6,345 Variable rate 470 470 650 650 Total debt $ 6,401 $ 7,245 $ 6,344 $ 6,995 (1) Excludes nonrecourse debt held by our Variable Interest Entities (VIEs). To estimate the fair value of fixed rate long-term debt we used the market approach, which is based on quoted market prices we received for the same types and issues of our debt. We believe that our variable rate long-term debt and line of credit instruments have net carrying values that approximate their fair values with only insignificant differences. 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, mutual fund investments held in grantor trusts, 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 and the allowance for doubtful accounts.

LEGAL PROCEEDINGS, COMMITMENTS

LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2019
LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES	LEGAL PROCEEDINGS, COMMITMENTS AND 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 Consolidated Balance Sheet , Consolidated Statement of Operations , or Consolidated Statement of Cash Flows . Environmental Matters Site Remediation Under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) – commonly known as the Superfund – and similar state laws, we: • are a party to various proceedings related to the cleanup of hazardous waste sites and • have been notified that we may be a potentially responsible party related to the cleanup of other hazardous waste sites for which proceedings have not yet been initiated. As of March 31, 2019 , our total accrual for future estimated remediation costs on the active Superfund sites and other sites for which we are potentially responsible was approximately $62 million . These amounts are recorded in "Accrued liabilities" and "Other liabilities" on our Consolidated Balance Sheet . Asset Retirement Obligations We have obligations associated with the future retirement of tangible long-lived assets consisting primarily of reforestation obligations related to forest management licenses in Canada and obligations to close and cap landfills. As of March 31, 2019 , our accrued balance for these obligations was $32 million . These obligations are recorded in "Accrued liabilities" and "Other liabilities" on our Consolidated Balance Sheet . Some of our sites have materials containing asbestos. We have met our current legal obligation to identify and manage these materials. In situations where we cannot reasonably determine when materials containing asbestos might be removed from the sites, we have not recorded an accrual because the fair value of the obligation cannot be reasonably estimated.

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE LOSS	3 Months Ended
	Mar. 31, 2019
ACCUMULATED OTHER COMPREHENSIVE LOSS	ACCUMULATED OTHER COMPREHENSIVE LOSS Changes in amounts included in our accumulated other comprehensive loss by component are: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 PENSION (1) Balance at beginning of period $ (1,343 ) $ (1,810 ) Other comprehensive income (loss) before reclassifications (24 ) 8 Amounts reclassified from accumulated other comprehensive loss to earnings (2) 367 46 Total other comprehensive income 343 54 Reclassification of certain effects due to tax law changes (3) $ — $ (246 ) Balance at end of period $ (1,000 ) $ (2,002 ) OTHER POSTRETIREMENT BENEFITS (1) Balance at beginning of period $ (19 ) $ (25 ) Amounts reclassified from other comprehensive income (loss) to earnings (2) 1 (1 ) Total other comprehensive income (loss) 1 (1 ) Reclassification of certain effects due to tax law changes (3) $ — $ (7 ) Balance at end of period $ (18 ) $ (33 ) TRANSLATION ADJUSTMENTS AND OTHER Balance at beginning of period $ 210 $ 273 Translation adjustments 14 (15 ) Total other comprehensive income (loss) 14 (15 ) Reclassification of accumulated unrealized gains on available-for-sale securities (4) — (9 ) Balance at end of period $ 224 $ 249 Accumulated other comprehensive loss, end of period $ (794 ) $ (1,786 ) (1) Amounts presented are net of tax. (2) Amounts of actuarial loss and prior service (cost) credit are components of net periodic benefit cost (credit). See Note 7: Pension and Other Postretirement Benefit Plans . (3) We reclassified certain tax effects from tax law changes of $253 million from "Accumulated other comprehensive loss" to "Retained earnings" on our Consolidated Balance Sheet in accordance with ASU 2018-02 which we adopted in 2018. (4) We reclassified accumulated unrealized gains from available-for-sale securities of $9 million from "Accumulated other comprehensive loss" to "Retained earnings" on our Consolidated Balance Sheet in accordance with ASU 2016-01 which we adopted in 2018.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2019
SHARE-BASED COMPENSATION	SHARE-BASED COMPENSATION Share-based compensation activity during quarter-to-date 2019 included the following: SHARES IN THOUSANDS GRANTED VESTED Restricted Stock Units (RSUs) 894 599 Performance Share Units (PSUs) 421 153 A total of 725 thousand shares of common stock were issued as a result of RSU vestings, PSU vestings and stock option exercises. Restricted Stock Units The weighted average fair value of the RSUs granted in 2019 was $25.83 . The vesting provisions for RSUs granted in 2019 were consistent with prior year grants. Performance Share Units The weighted average grant date fair value of PSUs granted in 2019 was $29.66 . The final number of shares granted in 2019 will range from 0 percent to 150 percent of each grant's target, depending upon actual company performance compared against the S&P 500 as well as an industry peer group. These measures are consistent with those utilized in prior year grants. The vesting provisions for PSUs granted in 2019 were consistent with prior year grants. Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted in 2019 PERFORMANCE SHARE UNITS Performance period 1/1/2019 – 12/31/2021 Valuation date average stock price (1) $25.83 Expected dividends 5.25% Risk-free rate 2.43 % – 2.55% Expected volatility 22.50 % – 27.40% (1) Calculated as an average of the high and low prices on grant date.

LEASES

LEASES	3 Months Ended
	Mar. 31, 2019
Leases [Abstract]
LEASES	LEASES We account for leases in accordance with ASC Topic 842, Leases , which we adopted on January 1, 2019, using the modified retrospective transition approach at the beginning of the adoption period through a cumulative-effect adjustment to retained earnings. This adoption resulted in the recognition of right-of-use assets ("ROU assets") of $165 million and lease liabilities of $172 million , with the difference of $7 million recorded to "Retained earnings", on our Consolidated Balance Sheet on January 1, 2019. The majority of our operating leases are related to our office and warehouse space, and the majority of our financing leases are related to vehicles and forklifts. Our leases have remaining lease terms of approximately 1 year to 25 years . Options to renew, extend or terminate a lease are reflected in our lease terms when we believe it is reasonably certain we will exercise that option. When our leases do not provide an implicit or an explicit interest rate, we use our incremental borrowing rate in determining the present value of lease payments. Expense related to leases for first quarter 2019 was $5 million and $4 million for operating leases and financing leases, respectively. Cash flows related to operating and financing leases were immaterial in first quarter 2019. Supplemental balance sheet information related to leases was as follows: DOLLAR AMOUNTS IN MILLIONS MARCH 31, LEASES BALANCE SHEET CLASSIFICATION Assets Operating lease right-of-use assets Other assets $ 125 Financing lease right-of-use assets Property and equipment, less accumulated depreciation 34 Total leased assets $ 159 Liabilities Current: Operating lease liabilities Accrued liabilities $ 14 Financing lease liabilities Accrued liabilities 14 Noncurrent: Operating lease liabilities Other liabilities 113 Financing lease liabilities Other liabilities 24 Total lease liabilities $ 165 Weighted average remaining lease term as of March 31, 2019: Operating leases 10 years Financing leases 3 years Weighted average discount rate as of March 31, 2019: Operating leases 4.3 % Financing leases 2.9 % Maturities of lease liabilities as of March 31, 2019: DOLLAR AMOUNTS IN MILLIONS OPERATING LEASES FINANCING LEASES 2019 $ 15 $ 12 2020 20 12 2021 16 8 2022 17 5 2023 15 3 Thereafter 76 — Total lease payments 159 40 Less: interest (32 ) (2 ) Total present value of lease liabilities $ 127 $ 38

OTHER OPERATING COSTS, NET

OTHER OPERATING COSTS, NET	3 Months Ended
	Mar. 31, 2019
OTHER OPERATING COSTS, NET	OTHER OPERATING COSTS, NET Other operating costs, net: • includes both recurring and occasional income and expense items and • can fluctuate from year to year. Items Included in Other Operating Costs, Net QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 Recoveries for product remediation $ — $ (20 ) Foreign exchange loss, net 3 2 Litigation expense, net 25 5 Other, net 8 23 Total other operating costs, net $ 36 $ 10

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2019
INCOME TAXES	INCOME TAXES As a REIT, we generally are not subject to federal corporate income taxes on REIT taxable income that is distributed to shareholders. We are required to pay corporate income taxes on earnings of our wholly-owned TRSs, which includes our Wood Products segment earnings and portions of our Timberlands and Real Estate & ENR segments' earnings. The quarterly provision for income taxes is based on our current estimate of the annual effective tax rate and is adjusted for discrete taxable events that may occur during the quarter. Our 2019 estimated annual effective tax rate for our TRSs, excluding discrete items, is 20.5 percent , which is slightly lower than the U.S. federal statutory tax rate primarily due to state income tax benefits related to unitary state filings, partially offset by a higher tax rate applicable to Canadian earnings and the impact of most Canadian earnings no longer being permanently reinvested. In first quarter 2019, we recorded as a discrete item a benefit of $110 million related to the tax effects of the noncash pretax settlement charge recorded in connection with our U.S. pension plan. Refer to Note 7: Pension and Other Postretirement Benefit Plans for additional details.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2019
Consolidation	Our consolidated financial statements provide an overall view of our results of operations and financial condition. They include our accounts and the accounts of entities we control, including: • majority-owned domestic and foreign subsidiaries and • variable interest entities in which we are the primary beneficiary. They do not include our intercompany transactions and accounts, which are eliminated.
Earnings Per Share	We use the treasury stock method to calculate the dilutive 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.
Fair Value of Financial Instruments	To estimate the fair value of fixed rate long-term debt we used the market approach, which is based on quoted market prices we received for the same types and issues of our debt. We believe that our variable rate long-term debt and line of credit instruments have net carrying values that approximate their fair values with only insignificant differences. 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.

BUSINESS SEGMENTS (Tables)

BUSINESS SEGMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
Reconciliation of Business Segment Information	A reconciliation of our business segment information to the respective information in the Consolidated Statement of Operations is as follows: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 Sales to unaffiliated customers: Timberlands (1) $ 431 $ 490 Real Estate & ENR 118 51 Wood Products (1) 1,094 1,324 1,643 1,865 Intersegment sales: Timberlands (1) 125 142 Total sales 1,768 2,007 Intersegment eliminations (1) (125 ) (142 ) Total $ 1,643 $ 1,865 Net contribution to earnings: Timberlands $ 120 $ 189 Real Estate & ENR 55 25 Wood Products 69 270 244 484 Unallocated items (2) (530 ) (92 ) Net contribution to earnings (loss) (286 ) 392 Interest expense, net of capitalized interest (107 ) (93 ) Earnings (loss) before income taxes (393 ) 299 Income taxes 104 (30 ) Net earnings (loss) $ (289 ) $ 269 (1) In January 2019, we changed the way we report our Canadian Forestlands operations, which are primarily operated to supply Weyerhaeuser’s Canadian Wood Products manufacturing facilities. As a result, we no longer report related intersegment sales in the Timberlands segment and we will now record the minimal associated third-party log sales in the Wood Products segment. These collective transactions did not contribute any earnings to the Timberlands segment. We have conformed prior period presentation with the current period. (2) Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	3 Months Ended
	Mar. 31, 2019
Revenue from External Customer
Revenue by Major Products	A reconciliation of revenue recognized by our major products: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 Net sales to unaffiliated customers: Timberlands Segment Delivered logs (1) : West Domestic sales $ 101 $ 137 Export grade sales 104 129 Subtotal West 205 266 South 159 157 North 29 25 Subtotal delivered logs sales 393 448 Stumpage and pay-as-cut timber 9 15 Recreational and other lease revenue 15 14 Other (2) 14 13 Net sales attributable to Timberlands segment 431 490 Real Estate & ENR Segment Real estate 96 34 Energy and natural resources 22 17 Net sales attributable to Real Estate & ENR segment 118 51 Wood Products Segment Structural lumber 444 569 Oriented strand board 160 232 Engineered solid section 116 129 Engineered I-joists 70 78 Softwood plywood 44 50 Medium density fiberboard 38 43 Complementary building products 137 137 Other (3) 85 86 Net sales attributable to Wood Products segment 1,094 1,324 Total net sales $ 1,643 $ 1,865 (1) In January 2019, we changed the way we report our Canadian Forestlands operations. We no longer report intersegment sales related to these operations in the Timberlands segment and now record the minimal associated third-party log sales within the Wood Products segment. Refer to Note 2: Business Segments for additional details. (2) Other Timberlands sales include seeds and seedlings from our nursery operations and chips. (3) Other Wood Products sales include chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations.

NET EARNINGS PER SHARE AND SH_2

NET EARNINGS PER SHARE AND SHARE REPURCHASES (Tables)	3 Months Ended
	Mar. 31, 2019
Dilutive Potential Common Shares	Diluted earnings (loss) per share is net earnings (loss) divided by the sum of the weighted average number of our outstanding common shares and the effect of our outstanding dilutive potential common shares. QUARTER ENDED SHARES IN THOUSANDS MARCH 2019 MARCH 2018 Weighted average common shares outstanding – basic 746,603 756,815 Dilutive potential common shares: Stock options — 1,682 Restricted stock units — 569 Performance share units — 396 Total effect of outstanding dilutive potential common shares — 2,647 Weighted average common shares outstanding – dilutive 746,603 759,462
Potential Shares Not Included in the Computation of Diluted Earnings per Share	Potential Shares Not Included in the Computation of Diluted Earnings per Share 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. QUARTER ENDED SHARES IN THOUSANDS MARCH 2019 MARCH 2018 Stock options 2,862 1,301 Restricted stock units 383 — Performance share units 1,356 744

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2019
Inventories	Inventories include raw materials, work-in-process, finished goods, as well as materials and supplies. DOLLAR AMOUNTS IN MILLIONS MARCH 31, DECEMBER 31, LIFO inventories: Logs $ 15 $ 11 Lumber, plywood, panels and fiberboard 83 75 Other products 12 10 FIFO or moving average cost inventories: Logs 58 35 Lumber, plywood, panels, fiberboard and engineered wood products 105 86 Other products 86 83 Materials and supplies 92 89 Total $ 451 $ 389

PENSION AND OTHER POSTRETIREM_2

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS (Tables)	3 Months Ended
	Mar. 31, 2019
Components of Net Periodic Benefit Costs	The components of net periodic benefit cost are: PENSION QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 Service cost $ 8 $ 10 Interest cost 43 60 Expected return on plan assets (62 ) (100 ) Amortization of actuarial loss 30 61 Amortization of prior service cost 1 1 Settlement charge 455 — Total net periodic benefit cost - pension $ 475 $ 32 OTHER POSTRETIREMENT BENEFITS QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 Interest cost $ 2 $ 2 Amortization of actuarial loss 2 2 Amortization of prior service credit (1 ) (2 ) Total net periodic benefit cost - other postretirement benefits $ 3 $ 2

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2019
Accrued Liabilities	Accrued liabilities were comprised of the following: DOLLAR AMOUNTS IN MILLIONS MARCH 31, DECEMBER 31, Compensation and employee benefit costs $ 143 $ 192 Current portion of lease liabilities (Note 14) 28 — Customer rebates, volume discounts and deferred income 65 99 Interest 66 109 Taxes payable 28 30 Other 81 60 Total $ 411 $ 490

FAIR VALUE OF FINANCIAL INSTR_2

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2019
Estimated Fair Values and Carrying Values of Long-Term Debt and Line of Credit	The estimated fair values and carrying values of our long-term debt and line of credit consisted of the following: MARCH 31, DECEMBER 31, DOLLAR AMOUNTS IN MILLIONS CARRYING VALUE FAIR VALUE (LEVEL 2) CARRYING VALUE FAIR VALUE (LEVEL 2) Long-term debt (including current maturities) and line of credit (1) : Fixed rate $ 5,931 $ 6,775 $ 5,694 $ 6,345 Variable rate 470 470 650 650 Total debt $ 6,401 $ 7,245 $ 6,344 $ 6,995 (1) Excludes nonrecourse debt held by our Variable Interest Entities (VIEs).

ACCUMLATED OTHER COMPREHENSIVE

ACCUMLATED OTHER COMPREHENSIVE LOSS (Tables)	3 Months Ended
	Mar. 31, 2019
Items Included in Accumulated Other Comprehensive Loss	Changes in amounts included in our accumulated other comprehensive loss by component are: QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 PENSION (1) Balance at beginning of period $ (1,343 ) $ (1,810 ) Other comprehensive income (loss) before reclassifications (24 ) 8 Amounts reclassified from accumulated other comprehensive loss to earnings (2) 367 46 Total other comprehensive income 343 54 Reclassification of certain effects due to tax law changes (3) $ — $ (246 ) Balance at end of period $ (1,000 ) $ (2,002 ) OTHER POSTRETIREMENT BENEFITS (1) Balance at beginning of period $ (19 ) $ (25 ) Amounts reclassified from other comprehensive income (loss) to earnings (2) 1 (1 ) Total other comprehensive income (loss) 1 (1 ) Reclassification of certain effects due to tax law changes (3) $ — $ (7 ) Balance at end of period $ (18 ) $ (33 ) TRANSLATION ADJUSTMENTS AND OTHER Balance at beginning of period $ 210 $ 273 Translation adjustments 14 (15 ) Total other comprehensive income (loss) 14 (15 ) Reclassification of accumulated unrealized gains on available-for-sale securities (4) — (9 ) Balance at end of period $ 224 $ 249 Accumulated other comprehensive loss, end of period $ (794 ) $ (1,786 ) (1) Amounts presented are net of tax. (2) Amounts of actuarial loss and prior service (cost) credit are components of net periodic benefit cost (credit). See Note 7: Pension and Other Postretirement Benefit Plans . (3) We reclassified certain tax effects from tax law changes of $253 million from "Accumulated other comprehensive loss" to "Retained earnings" on our Consolidated Balance Sheet in accordance with ASU 2018-02 which we adopted in 2018. (4) We reclassified accumulated unrealized gains from available-for-sale securities of $9 million from "Accumulated other comprehensive loss" to "Retained earnings" on our Consolidated Balance Sheet in accordance with ASU 2016-01 which we adopted in 2018.

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2019
Schedule of Share-Based Compensation Activity	Share-based compensation activity during quarter-to-date 2019 included the following: SHARES IN THOUSANDS GRANTED VESTED Restricted Stock Units (RSUs) 894 599 Performance Share Units (PSUs) 421 153
Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted	Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted in 2019 PERFORMANCE SHARE UNITS Performance period 1/1/2019 – 12/31/2021 Valuation date average stock price (1) $25.83 Expected dividends 5.25% Risk-free rate 2.43 % – 2.55% Expected volatility 22.50 % – 27.40% (1) Calculated as an average of the high and low prices on grant date.

LEASES (Tables)

LEASES (Tables)	3 Months Ended
	Mar. 31, 2019
Supplemental balance sheet information related to leases	Supplemental balance sheet information related to leases was as follows: DOLLAR AMOUNTS IN MILLIONS MARCH 31, LEASES BALANCE SHEET CLASSIFICATION Assets Operating lease right-of-use assets Other assets $ 125 Financing lease right-of-use assets Property and equipment, less accumulated depreciation 34 Total leased assets $ 159 Liabilities Current: Operating lease liabilities Accrued liabilities $ 14 Financing lease liabilities Accrued liabilities 14 Noncurrent: Operating lease liabilities Other liabilities 113 Financing lease liabilities Other liabilities 24 Total lease liabilities $ 165
Weighted average remaining lease term	Weighted average remaining lease term as of March 31, 2019: Operating leases 10 years Financing leases 3 years Weighted average discount rate as of March 31, 2019: Operating leases 4.3 % Financing leases 2.9 %
Schedule of maturities of operating and finance leases liabilities	Maturities of lease liabilities as of March 31, 2019: DOLLAR AMOUNTS IN MILLIONS OPERATING LEASES FINANCING LEASES 2019 $ 15 $ 12 2020 20 12 2021 16 8 2022 17 5 2023 15 3 Thereafter 76 — Total lease payments 159 40 Less: interest (32 ) (2 ) Total present value of lease liabilities $ 127 $ 38

OTHER OPERATING COSTS, NET (Tab

OTHER OPERATING COSTS, NET (Tables)	3 Months Ended
	Mar. 31, 2019
Items Included in Other Operating Costs (Income), Net	Items Included in Other Operating Costs, Net QUARTER ENDED DOLLAR AMOUNTS IN MILLIONS MARCH 2019 MARCH 2018 Recoveries for product remediation $ — $ (20 ) Foreign exchange loss, net 3 2 Litigation expense, net 25 5 Other, net 8 23 Total other operating costs, net $ 36 $ 10

BUSINESS SEGMENTS Reconciliatio

BUSINESS SEGMENTS Reconciliation of Business Segment Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Segment Reporting, Revenue Reconciling Item
Sales to unaffiliated customers	$ 1,643	$ 1,865
Third party and intersegment revenue, net	1,768	2,007
Net contribution to earnings (loss)	(286)	392
Interest expense, net of capitalized interest	(107)	(93)
Earnings (loss) before income taxes	(393)	299
Income taxes	104	(30)
Net earnings (loss)	(289)	269
Intersegment eliminations
Segment Reporting, Revenue Reconciling Item
Intersegment Sales	(125)	(142)
Operating segments
Segment Reporting, Revenue Reconciling Item
Net contribution to earnings (loss)	244	484
Unallocated items
Segment Reporting, Revenue Reconciling Item
Net contribution to earnings (loss)	(530)	(92)
Timberlands
Segment Reporting, Revenue Reconciling Item
Sales to unaffiliated customers	431	490
Intersegment Sales	125	142
Net contribution to earnings (loss)	120	189
Real Estate & ENR
Segment Reporting, Revenue Reconciling Item
Sales to unaffiliated customers	118	51
Net contribution to earnings (loss)	55	25
Wood Products
Segment Reporting, Revenue Reconciling Item
Sales to unaffiliated customers	1,094	1,324
Net contribution to earnings (loss)	$ 69	$ 270

REVENUE RECOGNITION Revenue by

REVENUE RECOGNITION Revenue by Major Products (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Revenue from External Customer
Net sales	$ 1,643	$ 1,865
Timberlands
Revenue from External Customer
Net sales	431	490
Timberlands | Delivered logs
Revenue from External Customer
Net sales	393	448
Timberlands | Stumpage and pay-as-cut timber
Revenue from External Customer
Net sales	9	15
Timberlands | Recreational and other lease revenue
Revenue from External Customer
Net sales	15	14
Timberlands | Other
Revenue from External Customer
Net sales	14	13
Timberlands | West | Delivered logs
Revenue from External Customer
Net sales	205	266
Timberlands | South | Delivered logs
Revenue from External Customer
Net sales	159	157
Timberlands | North | Delivered logs
Revenue from External Customer
Net sales	29	25
Timberlands | Domestic grade sales | West | Delivered logs
Revenue from External Customer
Net sales	101	137
Timberlands | Export grade sales | West | Delivered logs
Revenue from External Customer
Net sales	104	129
Real Estate & ENR
Revenue from External Customer
Net sales	118	51
Real Estate & ENR | Real estate
Revenue from External Customer
Net sales	96	34
Real Estate & ENR | Energy and natural resources
Revenue from External Customer
Net sales	22	17
Wood Products
Revenue from External Customer
Net sales	1,094	1,324
Wood Products | Structural lumber
Revenue from External Customer
Net sales	444	569
Wood Products | Oriented strand board
Revenue from External Customer
Net sales	160	232
Wood Products | Engineered solid section
Revenue from External Customer
Net sales	116	129
Wood Products | Engineered I-joists
Revenue from External Customer
Net sales	70	78
Wood Products | Softwood plywood
Revenue from External Customer
Net sales	44	50
Wood Products | Medium density fiberboard
Revenue from External Customer
Net sales	38	43
Wood Products | Complementary building products
Revenue from External Customer
Net sales	137	137
Wood Products | Other
Revenue from External Customer
Net sales	$ 85	$ 86

NET EARNINGS PER SHARE AND SH_3

NET EARNINGS PER SHARE AND SHARE REPURCHASES Dilutive Potential Common Shares (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Basic	746,603	756,815
Dilutive potential common shares	0	2,647
Diluted	746,603	759,462
Stock options
Dilutive potential common shares	0	1,682
Restricted stock units
Dilutive potential common shares	0	569
Performance share units
Dilutive potential common shares	0	396

NET EARNINGS PER SHARE AND SH_4

NET EARNINGS PER SHARE AND SHARE REPURCHASES Potential Shares Not Included in the Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share
Potential shares not included in the computation of diluted earnings per share	2,862	1,301
Performance share units
Antidilutive Securities Excluded from Computation of Earnings Per Share
Potential shares not included in the computation of diluted earnings per share	1,356	744

NET EARNINGS PER SHARE AND SH_5

NET EARNINGS PER SHARE AND SHARE REPURCHASES Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Feb. 07, 2019
Earnings (loss) per share, basic and diluted	$ (0.39)	$ 0.35
Stock repurchase program, authorized amount			$ 500
Shares repurchased during period	2,348,635
Payments for repurchase of common stock (including unsettled repurchases)	$ 60
Stock repurchase program, remaining authorized repurchase amount	440
Unsettled share repurchases	$ 0

INVENTORIES Inventories (Detail

INVENTORIES Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Inventory [Line Items]
Total	$ 451	$ 389
Logs
Inventory [Line Items]
LIFO inventories	15	11
FIFO or moving average cost inventories	58	35
Lumber, plywood, panels and fiberboard
Inventory [Line Items]
LIFO inventories	83	75
Lumber, plywood, panels, fiberboard and engineered wood products
Inventory [Line Items]
FIFO or moving average cost inventories	105	86
Other products
Inventory [Line Items]
LIFO inventories	12	10
FIFO or moving average cost inventories	86	83
Materials and supplies
Inventory [Line Items]
FIFO or moving average cost inventories	$ 92	$ 89

INVENTORIES Additional informat

INVENTORIES Additional information (Details) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Inventory [Line Items]
Increase in inventory amount if FIFO would have been used	$ 79	$ 79

VARIABLE INTEREST ENTITIES Addi

VARIABLE INTEREST ENTITIES Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
SPE Transaction
Proceeds from note receivable held by variable interest entities	$ 253		$ 0
Payments related to SPE liabilities		$ 209
Current restricted financial investments held by variable interest entities	362	253
SPE short-term notes	302	$ 302
Buyer Sponsored SPEs
SPE Transaction
Current restricted financial investments held by variable interest entities	$ 362
Investment maturity date	Mar. 31, 2020
Monetization SPEs
SPE Transaction
SPE short-term notes	$ 302
Debt instrument, maturity date	Sep. 30, 2019

PENSION AND OTHER POSTRETIREM_3

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Components of Net Periodic Benefit Costs (Credits) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Pension
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 8	$ 10
Interest cost	43	60
Expected return on plan assets	(62)	(100)
Amortization of actuarial loss	30	61
Amortization of prior service cost (credit)	1	1
Accelerated Pension Benefits	455	0
Total net periodic benefit cost	475	32
Other Postretirement Benefits
Defined Benefit Plan Disclosure [Line Items]
Interest cost	2	2
Amortization of actuarial loss	2	2
Amortization of prior service cost (credit)	(1)	(2)
Total net periodic benefit cost	$ 3	$ 2

PENSION AND OTHER POSTRETIREM_4

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS Additional Information (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Expected Future Employer Contributions, Remainder of Fiscal Year	$ 40
U.S. Qualified Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan		$ 1,500
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	4.30%		4.40%
Pension
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Payment for Settlement	$ 455

ACCRUED LIABILITIES Accrued Lia

ACCRUED LIABILITIES Accrued Liabilities (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
Compensation and employee benefit costs	$ 143	$ 192
Current portion of lease liabilities	28	0
Customer rebates, volume discounts and deferred income	65	99
Interest	66	109
Taxes payable	28	30
Other	81	60
Total	$ 411	$ 490

LONG-TERM DEBT AND LINES OF C_2

LONG-TERM DEBT AND LINES OF CREDIT Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018
Proceeds from issuance of long-term debt	$ 739	$ 0
Pretax charge related to early extinguishment of debt	12
Revolving line of credit, outstanding balance	245		$ 425
Line of credit, maximum borrowing capacity	$ 1,500
Line of credit expiration date	Mar. 31, 2022
4.00 percent due 2029 [Member]
Proceeds from issuance of long-term debt	$ 750
Debt Instrument, Interest Rate, Stated Percentage	4.00%
Proceeds from Debt, Net of Issuance Costs	$ 739
7.38 percent due 2019 [Member]
Debt Instrument, Interest Rate, Stated Percentage	7.38%
Repayments of debt	$ 500

FAIR VALUE OF FINANCIAL INSTR_3

FAIR VALUE OF FINANCIAL INSTRUMENTS Estimated Fair Values and Carrying Values of Long-Term Debt (Detail) - USD ($) $ in Millions	Mar. 31, 2019	Dec. 31, 2018
FAIR VALUE OF FINANCIAL INSTRUMENTS
Long-term debt (including current maturities) and line of credit, carrying value	$ 6,401	$ 6,344
Long-term debt (including current maturities) and line of credit, fair value (Level 2)	7,245	6,995
Fixed interest rate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Long-term debt (including current maturities) and line of credit, carrying value	5,931	5,694
Long-term debt (including current maturities) and line of credit, fair value (Level 2)	6,775	6,345
Variable interest rate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Long-term debt (including current maturities) and line of credit, carrying value	470	650
Long-term debt (including current maturities) and line of credit, fair value (Level 2)	$ 470	$ 650

LEGAL PROCEEDINGS, COMMITMENT_2

LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES Additional Information (Details) $ in Millions	Mar. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Line Items]
Accrued estimated remediation costs	$ 62
Asset retirement obligations	$ 32

ACCUMLATED OTHER COMPREHENSIV_2

ACCUMLATED OTHER COMPREHENSIVE LOSS Items Included in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Beginning balance	$ (1,152)
Total other comprehensive income (loss)	358	$ 38
Reclassification of certain tax affects due to tax law changes		253
Reclassification of accumulated unrealized gains on available-for-sale securities		(9)
Ending balance	(794)	(1,786)
Pension
Beginning balance	(1,343)	(1,810)
Other comprehensive income (loss) before reclassifications	(24)	8
Amounts reclassified from accumulated other comprehensive loss to earnings	367	46
Total other comprehensive income (loss)	343	54
Reclassification of certain tax affects due to tax law changes	0	(246)
Ending balance	(1,000)	(2,002)
Other Postretirement Benefits
Beginning balance	(19)	(25)
Amounts reclassified from accumulated other comprehensive loss to earnings	1	(1)
Total other comprehensive income (loss)	1	(1)
Reclassification of certain tax affects due to tax law changes	0	(7)
Ending balance	(18)	(33)
Translation Adjustment And Other
Beginning balance	210	273
Total other comprehensive income (loss)	14	(15)
Translation adjustments before reclassifications	14	(15)
Reclassification of accumulated unrealized gains on available-for-sale securities	0	(9)
Ending balance	$ 224	$ 249

SHARE-BASED COMPENSATION Schedu

SHARE-BASED COMPENSATION Schedule of Share-Based Compensation Activity (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2019shares
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Granted	894
Vested	599
Performance share units
Share-based Compensation Arrangement by Share-based Payment Award
Granted	421
Vested	153

SHARE-BASED COMPENSATION Weight

SHARE-BASED COMPENSATION Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted (Details) - Performance share units	3 Months Ended
	Mar. 31, 2019$ / sharesRate
Share-based Compensation Arrangement by Share-based Payment Award
Valuation date average stock price(1) | $ / shares	$ 25.83
Expected dividends	5.25%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Performance period	1/1/2019
Risk-free rate minimum	2.43%
Expected volatility minimum	22.50%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Performance period	12/31/2021
Risk-free rate maximum	2.55%
Expected volatility maximum	27.40%

SHARE-BASED COMPENSATION Additi

SHARE-BASED COMPENSATION Additional Information (Details)	3 Months Ended
	Mar. 31, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award
Shares issued during period | shares	725,000
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average fair value of units granted	$ 25.83
Performance share units
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average fair value of units granted	$ 29.66
Performance share units | Minimum
Share-based Compensation Arrangement by Share-based Payment Award
Final number of shares awarded of each grant's target	0.00%
Performance share units | Maximum
Share-based Compensation Arrangement by Share-based Payment Award
Final number of shares awarded of each grant's target	150.00%

LEASES Supplemental Balance She

LEASES Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Jan. 01, 2019
Document Period End Date	Mar. 31, 2019
Assets
Operating lease right-of-use assets	$ 125
Finance Lease, right-of-use assets	34
Total leased assets	159	$ 165
Current
Operating lease liabilities	14
Financing lease liabilities	14
Noncurrent
Operating lease liabilities	113
Financing lease liabilities	24
Total lease liabilities	$ 165	$ (172)

LEASES Lease Term and Discount

LEASES Lease Term and Discount Rate (Details)	Mar. 31, 2019
Weighted Average Remaining Lease Term (years)
Operating lease, weighted average remaining lease term	10 years
Finance lease, weighted average remaining lease term	3 years
Weighted Average Discount Rate
Operating lease, weighted average discount rate	4.30%
Finance lease, weighted average discount rate	2.90%

LEASES Maturities of Lease Liab

LEASES Maturities of Lease Liabilities (Details) $ in Millions	Mar. 31, 2019USD ($)
Operating Lease
Operating lease liability payments remainder of fiscal year	$ 15
Operating lease liability payments remainder of 2020	20
Operating lease liability payments remainder of 2021	16
Operating lease liability payments remainder of 2022	17
Operating lease liability payments remainder of 2023	15
Operating lease liability payments remainder thereafter	76
Operating lease total payments due	159
Operating lease interest	(32)
Operating lease liability present value	127
Finance Leases
Finance lease liability payments remainder of fiscal year	12
Finance lease liability payments remainder due 2020	12
Finance lease liability payments remainder due 2021	8
Finance lease liability payments remainder due 2022	5
Finance lease liability payments remainder of 2023	3
Finance lease liability payments remainder thereafter	0
Finance lease total payments due	40
Finance lease interest	(2)
Finance lease liability present value	$ 38

LEASES Additional Information (

LEASES Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Jan. 01, 2019
Total leased assets	$ 159	$ 165
Total lease liabilities	165	(172)
Amount recorded to retained earnings related to new accounting pronouncement		$ 7
Operating Lease, Cost	5
Finance Lease, Cost	$ 4
Minimum
Operating and finance leases remaining lease term	1 year
Maximum
Operating and finance leases remaining lease term	25 years

OTHER OPERATING COSTS, NET Item

OTHER OPERATING COSTS, NET Items Included in Other Operating Costs (Income), Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Charges (recoveries) for product remediation	$ 0	$ (20)
Foreign exchange losses (gains), net	3	2
Litigation expense, net	25	5
Other, net(1)	8	23
Total other operating costs (income), net	$ 36	$ 10

INCOME TAXES Additional Informa

INCOME TAXES Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2019USD ($)Rate
Estimated annual effective tax rate for our Taxable REIT Subsidiary | Rate	20.50%
Tax benefit related to pension settlement activity | $	$ 110