Weyerhaeuser 8K reports third quarter results | WY 25 Oct 19

Weyerhaeuser Company

Exhibit 99.2

Q3.2019 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Operations

	Q1			Q2			Q3						Year-to-Date
in millions	March 31, 2019			June 30, 2019			September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Net sales	$	1,643		$	1,692		$	1,671		$	1,910		$	5,006		$	5,840
Costs of sales		1,322			1,390			1,399			1,452			4,111			4,247
Gross margin		321			302			272			458			895			1,593
Selling expenses		21			21			20			20			62	��		66
General and administrative expenses		89			80			85			78			254			236
Research and development expenses		1			2			1			2			4			6
Product remediation recoveries, net		—			—			(68	)		—			(68	)		—
Other operating costs, net		36			13			32			21			81			68
Operating income		174			186			202			337			562			1,217
Non-operating pension and other postretirement benefit costs		(470	)		(10	)		(15	)		(17	)		(495	)		(54	)
Interest income and other		10			6			6			13			22			36
Interest expense, net of capitalized interest		(107	)		(91	)		(91	)		(93	)		(289	)		(278	)
Earnings (loss) before income taxes		(393	)		91			102			240			(200	)		921
Income taxes		104			37			(3	)		15			138			(80	)
Net earnings (loss)	$	(289	)	$	128		$	99		$	255		$	(62	)	$	841

Per Share Information

	Q1			Q2		Q3				Year-to-Date
	March 31, 2019			June 30, 2019		September 30, 2019		September 30, 2018		September 30, 2019			September 30, 2018
Earnings (loss) per share, basic and diluted	$	(0.39	)	$	0.17	$	0.13	$	0.34	$	(0.08	)	$	1.11
Dividends paid per common share	$	0.34		$	0.34	$	0.34	$	0.34	$	1.02		$	0.98
Weighted average shares outstanding (in thousands):
Basic		746,603			745,486		745,626		754,986		745,901			756,531
Diluted		746,603			746,232		746,514		757,389		745,901			759,116
Common shares outstanding at end of period (in thousands)		744,767			744,905		745,071		749,199		745,071			749,199

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

	Q1			Q2			Q3						Year-to-Date
in millions	March 31, 2019			June 30, 2019			September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Net earnings (loss)	$	(289	)	$	128		$	99		$	255		$	(62	)	$	841
Non-operating pension and other postretirement benefit costs		470			10			15			17			495			54
Interest income and other		(10	)		(6	)		(6	)		(13	)		(22	)		(36	)
Interest expense, net of capitalized interest		107			91			91			93			289			278
Income taxes		(104	)		(37	)		3			(15	)		(138	)		80
Operating income		174			186			202			337			562			1,217
Depreciation, depletion and amortization		123			124			135			122			382			361
Basis of real estate sold		48			33			24			46			105			80
Special items included in operating income		20			—			(53	)		—			(33	)		28
Adjusted EBITDA⁽¹⁾	$	365		$	343		$	308		$	505		$	1,016		$	1,686

⁽¹⁾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 adjusted for depreciation, depletion, amortization, basis of real estate sold, and special items. 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.

Page 1 of 8

Weyerhaeuser Company

Total Company Statistics

Q3.2019 Analyst Package

Preliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)

	Q1			Q2			Q3						Year-to-Date
in millions	March 31, 2019			June 30, 2019			September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Net earnings (loss)	$	(289	)	$	128		$	99		$	255		$	(62	)	$	841
Early extinguishment of debt charge⁽¹⁾		9			—			—			—			9			—
Environmental remediation charge		—			—			—			—			—			21
Legal charges		15			—			11			—			26			—
Pension settlement charges		345			(5	)		—			—			340			—
Product remediation recoveries, net		—			—			(51	)		—			(51	)		—
Tax adjustment		—			—			—			(41	)		—			(41	)
Net earnings before special items⁽²⁾	$	80		$	123		$	59		$	214		$	262		$	821

	Q1			Q2			Q3						Year-to-Date
	March 31, 2019			June 30, 2019			September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Net earnings (loss) per diluted share	$	(0.39	)	$	0.17		$	0.13		$	0.34		$	(0.08	)	$	1.11
Early extinguishment of debt charge⁽¹⁾		0.01			—			—			—			0.01			—
Environmental remediation charge		—			—			—			—			—			0.03
Legal charges		0.02			—			0.02			—			0.04			—
Pension settlement charges		0.47			(0.01	)		—			—			0.46			—
Product remediation recoveries, net		—			—			(0.07	)		—			(0.07	)		—
Tax adjustment		—			—			—			(0.06	)		—			(0.06	)
Net earnings per diluted share before special items⁽²⁾	$	0.11		$	0.16		$	0.08		$	0.28		$	0.36		$	1.08

⁽¹⁾During first quarter 2019, we recorded a $12 million pretax ($9 million after-tax) charge related to the early extinguishment of debt. This charge is included in Interest expense, net of capitalized interest in the Consolidated Statement of Operations.

⁽²⁾Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company’s earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.

Selected Total Company Items

	Q1		Q2		Q3				Year-to-Date
in millions	March 31, 2019		June 30, 2019		September 30, 2019		September 30, 2018		September 30, 2019		September 30, 2018
Pension and postretirement costs:
Pension and postretirement service costs	$	8	$	8	$	8	$	10	$	24	$	28
Non-operating pension and other postretirement benefit costs		470		10		15		17		495		54
Total company pension and postretirement costs	$	478	$	18	$	23	$	27	$	519	$	82

Page 2 of 8

Weyerhaeuser Company

Q3.2019 Analyst Package

Preliminary results (unaudited)

Consolidated Balance Sheet

in millions	March 31, 2019		June 30, 2019		September 30, 2019		December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	259	$	212	$	153	$	334
Receivables, less discounts and allowances		398		408		368		337
Receivables for taxes		163		157		149		137
Inventories		451		425		393		389
Assets held for sale		—		—		251		—
Prepaid expenses and other current assets		141		132		141		152
Current restricted financial investments held by variable interest entities		362		362		362		253
Total current assets		1,774		1,696		1,817		1,602
Property and equipment, net		1,917		1,901		1,860		1,857
Construction in progress		102		134		187		136
Timber and timberlands at cost, less depletion		12,586		12,516		12,192		12,671
Minerals and mineral rights, less depletion		291		288		284		294
Deferred tax assets		18		33		31		15
Other assets		444		461		461		312
Restricted financial investments held by variable interest entities		—		—		—		362
Total assets	$	17,132	$	17,029	$	16,832	$	17,249

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	—	$	—	$	—	$	500
Current debt (nonrecourse to the company) held by variable interest entities		302		302		—		302
Borrowings on line of credit		245		140		440		425
Accounts payable		243		271		242		222
Accrued liabilities		411		510		487		490
Total current liabilities		1,201		1,223		1,169		1,939
Long-term debt, net		6,156		6,153		6,150		5,419
Deferred tax liabilities		34		17		25		43
Deferred pension and other postretirement benefits		542		515		506		527
Other liabilities		398		397		383		275
Total liabilities		8,331		8,305		8,233		8,203
Total equity		8,801		8,724		8,599		9,046
Total liabilities and equity	$	17,132	$	17,029	$	16,832	$	17,249

Page 3 of 8

Weyerhaeuser Company

Q3.2019 Analyst Package

Preliminary results (unaudited)

Consolidated Statement of Cash Flows

	Q1			Q2			Q3						Year-to-Date
in millions	March 31, 2019			June 30, 2019			September 30, 2019			September 30, 2018			September 30, 2019			September 30, 2018
Cash flows from operations:
Net earnings (loss)	$	(289	)	$	128		$	99		$	255		$	(62	)	$	841
Noncash charges to earnings (loss):
Depreciation, depletion and amortization		123			124			135			122			382			361
Basis of real estate sold		48			33			24			46			105			80
Deferred income taxes, net		(123	)		(43	)		2			86			(164	)		111
Pension and other postretirement benefits		478			18			23			27			519			82
Share-based compensation expense		9			7			7			13			23			31
Change in:
Receivables, less allowances		(77	)		(10	)		40			46			(47	)		(55	)
Receivables and payables for taxes		(31	)		6			7			(124	)		(18	)		(109	)
Inventories		(60	)		28			30			27			(2	)		(9	)
Prepaid expenses and other current assets		(5	)		8			2			(6	)		5			(7	)
Accounts payable and accrued liabilities		(82	)		127			(58	)		(63	)		(13	)		(133	)
Pension and postretirement benefit contributions and payments		(14	)		(13	)		(9	)		(323	)		(36	)		(355	)
Other		9			(17	)		(10	)		(19	)		(18	)		(18	)
Net cash from operations	$	(14	)	$	396		$	292		$	87		$	674		$	820
Cash flows from investing activities:
Capital expenditures for property and equipment	$	(41	)	$	(71	)	$	(87	)	$	(94	)	$	(199	)	$	(238	)
Capital expenditures for timberlands reforestation		(18	)		(13	)		(11	)		(11	)		(42	)		(45	)
Proceeds from note receivable held by variable interest entities		253			—			—			—			253			—
Other		18			1			1			(10	)		20			19
Net cash from investing activities	$	212		$	(83	)	$	(97	)	$	(115	)	$	32		$	(264	)
Cash flows from financing activities:
Cash dividends on common shares	$	(254	)	$	(253	)	$	(253	)	$	(256	)	$	(760	)	$	(741	)
Net proceeds from issuance of long-term debt		739			—			—			—			739			—
Payments of long-term debt		(512	)		—			—			—			(512	)		(62	)
Proceeds from borrowings on line of credit		245			140			490			—			875			—
Payments on line of credit		(425	)		(245	)		(190	)		—			(860	)		—
Payments on debt held by variable interest entities		—			—			(302	)		—			(302	)		—
Proceeds from exercise of stock options		2			2			4			4			8			52
Repurchases of common shares		(60	)		—			—			(273	)		(60	)		(273	)
Other		(8	)		(4	)		(3	)		—			(15	)		(8	)
Net cash from financing activities	$	(273	)	$	(360	)	$	(254	)	$	(525	)	$	(887	)	$	(1,032	)

Net change in cash and cash equivalents	$	(75	)	$	(47	)	$	(59	)	$	(553	)	$	(181	)	$	(476	)
Cash and cash equivalents at beginning of period		334			259			212			901			334			824
Cash and cash equivalents at end of period	$	259		$	212		$	153		$	348		$	153		$	348

Cash paid during the period for:
Interest, net of amount capitalized	$	127		$	59		$	124		$	113		$	310		$	285
Income taxes	$	50		$	1		$	(5	)	$	22		$	46		$	80

Page 4 of 8

Weyerhaeuser Company

Timberlands Segment

Q3.2019 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations⁽¹⁾

in millions	Q1.2019			Q2.2019			Q3.2019			Q3.2018			YTD.2019			YTD.2018
Sales to unaffiliated customers	$	431		$	401		$	398		$	459		$	1,230		$	1,425
Intersegment sales		125			131			125			128			381			409
Total net sales		556			532			523			587			1,611			1,834
Costs of sales		413			405			429			436			1,247			1,289
Gross margin		143			127			94			151			364			545
Selling expenses		1			—			—			1			1			2
General and administrative expenses		22			25			24			23			71			69
Research and development expenses		1			1			1			2			3			5
Other operating income, net		(1	)		(1	)		(3	)		(1	)		(5	)		(7	)
Operating income and Net contribution to earnings	$	120		$	102		$	72		$	126		$	294		$	476

⁽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 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 year presentations with the current year.

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽²⁾

in millions	Q1.2019		Q2.2019		Q3.2019		Q3.2018		YTD.2019		YTD.2018
Operating income	$	120	$	102	$	72	$	126	$	294	$	476
Depreciation, depletion and amortization		73		73		82		80		228		238
Adjusted EBITDA⁽²⁾	$	193	$	175	$	154	$	206	$	522	$	714

⁽²⁾See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Selected Segment Items

in millions	Q1.2019			Q2.2019			Q3.2019			Q3.2018			YTD.2019			YTD.2018
Total decrease (increase) in working capital⁽³⁾	$	(24	)	$	46		$	2		$	(32	)	$	24		$	(2	)
Cash spent for capital expenditures	$	(26	)	$	(25	)	$	(28	)	$	(25	)	$	(79	)	$	(82	)

⁽³⁾Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.

Segment Statistics⁽⁴⁾

		Q1.2019		Q2.2019		Q3.2019		Q3.2018		YTD.2019		YTD.2018
Third Party	Delivered logs:
Net Sales	West	$	205	$	194	$	172	$	238	$	571	$	766
(millions)	South		159		156		168		157		483		472
	North		29		17		24		25		70		70
	Total delivered logs		393		367		364		420		1,124		1,308
	Stumpage and pay-as-cut timber		9		10		10		13		29		39
	Recreational and other lease revenue		15		15		15		16		45		44
	Other revenue		14		9		9		10		32		34
	Total	$	431	$	401	$	398	$	459	$	1,230	$	1,425
Delivered Logs	West	$	106.92	$	104.07	$	99.07	$	125.67	$	103.50	$	129.91
Third Party Sales	South	$	35.35	$	35.45	$	35.03	$	34.88	$	35.27	$	34.75
Realizations (per ton)	North	$	59.68	$	62.10	$	57.35	$	60.97	$	59.37	$	62.00
Delivered Logs	West		1,920		1,864		1,729		1,897		5,513		5,900
Third Party Sales	South		4,499		4,400		4,795		4,521		13,694		13,591
Volumes (tons, thousands)	North		494		263		429		414		1,186		1,131
Fee Harvest Volumes	West		2,385		2,455		2,183		2,305		7,023		7,108
(tons, thousands)	South		6,492		6,367		6,802		6,478		19,661		19,859
	North		627		378		560		537		1,565		1,509

⁽⁴⁾ Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.

Page 5 of 8

Weyerhaeuser Company

Real Estate, Energy & Natural Resources Segment

Q3.2019 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations

in millions	Q1.2019		Q2.2019		Q3.2019			Q3.2018		YTD.2019			YTD.2018
Net sales	$	118	$	81	$	69		$	96	$	268		$	205
Costs of sales		56		39		32			54		127			103
Gross margin		62		42		37			42		141			102
General and administrative expenses		7		7		6			6		20			19
Other operating income, net		—		—		(1	)		—		(1	)		—
Operating income and Net contribution to earnings	$	55	$	35	$	32		$	36	$	122		$	83

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽¹⁾

in millions	Q1.2019		Q2.2019		Q3.2019		Q3.2018		YTD.2019		YTD.2018
Operating income	$	55	$	35	$	32	$	36	$	122	$	83
Depreciation, depletion and amortization		3		3		4		4		10		11
Basis of real estate sold		48		33		24		46		105		80
Adjusted EBITDA⁽¹⁾	$	106	$	71	$	60	$	86	$	237	$	174

⁽¹⁾See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Selected Segment Items

in millions

Q1.2019

Q2.2019

Q3.2019

Q3.2018

YTD.2019

YTD.2018

Cash spent for capital expenditures

—

Segment Statistics

		Q1.2019			Q2.2019			Q3.2019			Q3.2018			YTD.2019			YTD.2018
Net Sales	Real Estate	$	96		$	59		$	45		$	76		$	200		$	148
(millions)	Energy and Natural Resources		22			22			24			20			68			57
	Total	$	118		$	81		$	69		$	96		$	268		$	205
Acres Sold	Real Estate		38,834			47,031			18,057			61,681			103,922			99,742
Price per Acre	Real Estate	$	2,424		$	1,063		$	2,415		$	1,209		$	1,806		$	1,452
Basis as a Percent of Real Estate Net Sales	Real Estate		50	%		56	%		53	%		61	%		53	%		54	%

Page 6 of 8

Weyerhaeuser Company

Wood Products Segment

Q3.2019 Analyst Package

Preliminary results (unaudited)

Segment Statement of Operations ⁽¹⁾

in millions	Q1.2019		Q2.2019		Q3.2019			Q3.2018		YTD.2019			YTD.2018
Net sales	$	1,094	$	1,210	$	1,204		$	1,355	$	3,508		$	4,210
Costs of sales		967		1,070		1,067			1,080		3,104			3,225
Gross margin		127		140		137			275		404			985
Selling expenses		19		20		20			18		59			61
General and administrative expenses		35		34		35			32		104			97
Research and development expenses		—		1		—			—		1			1
Product remediation recoveries, net		—		—		(68	)		—		(68	)		—
Other operating costs, net		4		4		7			12		15			14
Operating income and Net contribution to earnings	$	69	$	81	$	143		$	213	$	293		$	812

⁽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 now record the minimal associated third-party log sales in the Wood Products segment. These transactions do not contribute any earnings to the Wood Products segment. We have conformed prior year presentations with the current year.

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽²⁾

in millions	Q1.2019		Q2.2019		Q3.2019			Q3.2018		YTD.2019			YTD.2018
Operating income	$	69	$	81	$	143		$	213	$	293		$	812
Depreciation, depletion and amortization		46		47		48			37		141			109
Special items		—		—		(68	)		—		(68	)		—
Adjusted EBITDA⁽²⁾	$	115	$	128	$	123		$	250	$	366		$	921

⁽²⁾See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Segment Special Items Included in Net Contribution to Earnings (Pretax)

in millions		Q1.2019				Q2.2019				Q3.2019				Q3.2018				YTD.2019				YTD.2018
Product remediation recoveries, net		$	—			$	—			$	68			$	—			$	68			$	—

Selected Segment Items

in millions	Q1.2019			Q2.2019			Q3.2019			Q3.2018			YTD.2019			YTD.2018
Total decrease (increase) in working capital⁽³⁾	$	(155	)	$	75		$	32		$	71		$	(48	)	$	(152	)
Cash spent for capital expenditures	$	(30	)	$	(53	)	$	(65	)	$	(79	)	$	(148	)	$	(199	)

⁽³⁾ Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.

Segment Statistics

in millions, except for third party sales realizations		Q1.2019		Q2.2019		Q3.2019		Q3.2018		YTD.2019		YTD.2018
Structural Lumber	Third party net sales	$	444	$	495	$	487	$	581	$	1,426	$	1,831
(volumes presented	Third party sales realizations	$	392	$	388	$	389	$	491	$	390	$	511
in board feet)	Third party sales volumes⁽⁴⁾		1,133		1,274		1,253		1,184		3,660		3,585
	Production volumes		1,145		1,193		1,189		1,106		3,527		3,446
Engineered Solid	Third party net sales	$	116	$	134	$	138	$	132	$	388	$	400
Section	Third party sales realizations	$	2,218	$	2,214	$	2,188	$	2,208	$	2,206	$	2,150
(volumes presented	Third party sales volumes⁽⁴⁾		5.2		6.1		6.3		6.0		17.6		18.6
in cubic feet)	Production volumes		5.9		6.0		5.3		6.3		17.2		19.0
Engineered	Third party net sales	$	70	$	86	$	90	$	91	$	246	$	261
I-joists	Third party sales realizations	$	1,709	$	1,662	$	1,665	$	1,668	$	1,676	$	1,629
(volumes presented	Third party sales volumes⁽⁴⁾		41		52		54		54		147		160
in lineal feet)	Production volumes		44		47		48		46		139		154
Oriented Strand	Third party net sales	$	160	$	156	$	159	$	215	$	475	$	724
Board	Third party sales realizations	$	223	$	213	$	214	$	321	$	217	$	335
(volumes presented	Third party sales volumes⁽⁴⁾		717		733		740		669		2,190		2,162
in square feet 3/8")	Production volumes		729		736		747		665		2,212		2,146
Softwood Plywood	Third party net sales	$	44	$	44	$	42	$	53	$	130	$	158
(volumes presented	Third party sales realizations	$	383	$	380	$	346	$	439	$	369	$	446
in square feet 3/8")	Third party sales volumes⁽⁴⁾		115		115		121		122		351		355
	Production volumes		98		104		100		106		302		308
Medium Density	Third party net sales	$	38	$	45	$	44	$	48	$	127	$	138
Fiberboard	Third party sales realizations	$	846	$	833	$	831	$	828	$	836	$	835
(volumes presented	Third party sales volumes⁽⁴⁾		44		55		53		59		152		165
in square feet 3/4")	Production volumes		45		61		47		61		153		168

⁽⁴⁾Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.

Page 7 of 8

Weyerhaeuser Company

Unallocated Items

Q3.2019 Analyst Package

Preliminary results (unaudited)

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.

Contribution to Earnings

in millions	Q1.2019			Q2.2019			Q3.2019			Q3.2018			YTD.2019			YTD.2018
Unallocated corporate function and variable compensation expense	$	(19	)	$	(12	)	$	(19	)	$	(19	)	$	(50	)	$	(56	)
Liability classified share-based compensation		(4	)		—			(1	)		4			(5	)		2
Foreign exchange gain (loss)		(3	)		2			(1	)		(2	)		(2	)		(2	)
Elimination of intersegment profit in inventory and LIFO		(5	)		(5	)		6			—			(4	)		(18	)
Other, net		(39	)		(17	)		(30	)		(21	)		(86	)		(80	)
Operating income (loss)		(70	)		(32	)		(45	)		(38	)		(147	)		(154	)
Non-operating pension and other postretirement benefit costs		(470	)		(10	)		(15	)		(17	)		(495	)		(54	)
Interest income and other		10			6			6			13			22			36
Net contribution to earnings (loss)	$	(530	)	$	(36	)	$	(54	)	$	(42	)	$	(620	)	$	(172	)

Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽¹⁾

in millions	Q1.2019			Q2.2019			Q3.2019			Q3.2018			YTD.2019			YTD.2018
Operating income (loss)	$	(70	)	$	(32	)	$	(45	)	$	(38	)	$	(147	)	$	(154	)
Depreciation, depletion and amortization		1			1			1			1			3			3
Special items		20			—			15			—			35			28
Adjusted EBITDA⁽¹⁾	$	(49	)	$	(31	)	$	(29	)	$	(37	)	$	(109	)	$	(123	)

⁽¹⁾See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.

Unallocated Special Items Included in Net Contribution to Earnings (Pretax)

in millions	Q1.2019			Q2.2019		Q3.2019			Q3.2018		YTD.2019			YTD.2018
Environmental remediation insurance charge	$	—		$	—	$	—		$	—	$	—		$	(28	)
Legal charges		(20	)		—		(15	)		—		(35	)	—
Special items included in operating income (loss)		(20	)		—		(15	)		—		(35	)		(28	)
Pension settlement charges⁽²⁾		(455	)		6		—			—		(449	)	—
Special items included in net contribution to earnings (loss)	$	(475	)	$	6	$	(15	)	$	—	$	(484	)	$	(28	)

⁽²⁾ During first quarter 2019, we recorded a $455 million pretax noncash settlement charge related to the transfer of pension assets and liabilities through the purchase of a group annuity contract. This charge was updated based on final pension asset and liability amounts during second quarter 2019, resulting in a $6 million pretax benefit for the quarter and a net $449 million pretax charge for year-to-date 2019.

Unallocated Selected Items

in millions		Q1.2019				Q2.2019				Q3.2019				Q3.2018				YTD.2019				YTD.2018
Cash spent for capital expenditures		$	(3	)		$	(6	)		$	(5	)		$	(1	)		$	(14	)		$	(2	)

Page 8 of 8

Weyerhaeuser (WY) 8-KWeyerhaeuser reports third quarter results