2 Unaudited Financial Information (Predecessor Company) Effective upon the commencement of the Creditor Protection Proceedings and through December 31, 2010, we applied the guidance in Financial Accounting Standards Board Accounting Standards Codification 852, “Reorganizations,” in preparing our consolidated financial statements. The application of fresh start accounting and the implementation of our Plans of Reorganization materially changed the carrying amounts and classifications reported in our consolidated financial statements and resulted in the Company becoming a new entity for financial reporting purposes. Accordingly, our consolidated statements of operations for periods prior to December 31, 2010 will not be comparable to our consolidated statements of operations for periods subsequent to December 31, 2010. Financial statements for periods prior to December 31, 2010 will be considered “Predecessor” or “Predecessor Company” and our consolidated balance sheet as of December 31, 2010 and our financial statements for periods after December 31, 2010 will be considered “Successor” or “Successor Company.” 2010 (Unaudited, in millions US$) Qtr 1 Qtr 2 Qtr 3 Qtr 4 Full year Sales 1,100 $ 1,182 $ 1,192 $ 1,272 $ 4,746 $ Costs and expenses: Cost of sales, excluding depreciation, amortization and cost of timber harvested 915 951 892 966 3,724 Depreciation, amortization and cost of timber harvested 132 125 119 117 493 Distribution costs 137 141 133 142 553 Selling and administrative expenses 30 39 40 46 155 Closure costs, impairment and other related charges 5 3 (3) (2) 3 Net gain on disposition of assets and other (9) (4) (1) (16) (30) Operating (loss) income (110) $ (73) $ 12 $ 19 $ (152) $ | 
