Plum Creek Timber (PCL) 8-K Plum Creek Timber Company, Inc. Reports Results for Third Quarter 2012

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(In Millions, Except Per Share Amounts)	Nine Months Ended September 30,
	2012			2011
REVENUES:
Timber	$	480		$	421
Real Estate	243			208
Manufacturing	246			208
Other	16			15
Total Revenues	985			852
COSTS AND EXPENSES:
Cost of Goods Sold:
Timber	374			327
Real Estate	124			68
Manufacturing	217			190
Other	1			1
Total Cost of Goods Sold	716			586
Selling, General and Administrative	86			77
Total Costs and Expenses	802			663
Other Operating Income (Expense), net	1			3
Operating Income	184			192
Equity Earnings from Timberland Venture	42			44
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	61			61
Interest Expense (Note Payable to Timberland Venture)	43			43
Total Interest Expense, net	104			104
Income before Income Taxes	122			132
Provision (Benefit) for Income Taxes	(2		)	—
Net Income	$	124		$	132
PER SHARE AMOUNTS:
Net Income per Share – Basic	$	0.77		$	0.81
Net Income per Share – Diluted	$	0.76		$	0.81
Weighted-Average Number of Shares Outstanding
– Basic	161.5			161.9
– Diluted	161.8			162.2

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(In Millions, Except Per Share Amounts)	Quarter Ended September 30,
	2012			2011
REVENUES:
Timber	$	168		$	154
Real Estate	96			67
Manufacturing	85			67
Other	5			5
Total Revenues	354			293
COSTS AND EXPENSES:
Cost of Goods Sold:
Timber	130			119
Real Estate	40			19
Manufacturing	74			62
Other	—			—
Total Cost of Goods Sold	244			200
Selling, General and Administrative	31			24
Total Costs and Expenses	275			224
Other Operating Income (Expense), net	—			—
Operating Income	79			69
Equity Earnings from Timberland Venture	14			14
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	21			20
Interest Expense (Note Payable to Timberland Venture)	14			14
Total Interest Expense, net	35			34
Income before Income Taxes	58			49
Provision (Benefit) for Income Taxes	(1		)	(1		)
Net Income	$	59		$	50
PER SHARE AMOUNTS:
Net Income per Share – Basic	$	0.36		$	0.31
Net Income per Share – Diluted	$	0.36		$	0.31
Weighted-Average Number of Shares Outstanding
– Basic	161.5			161.9
– Diluted	161.9			162.2

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(In Millions, Except Per Share Amounts)	September 30, 2012			December 31, 2011
ASSETS
Current Assets:
Cash and Cash Equivalents	$	320		$	254
Accounts Receivable	39			28
Inventories	49			48
Deferred Tax Asset	6			6
Assets Held for Sale	44			103
Other Current Assets	14			15
	472			454
Timber and Timberlands, net	3,423			3,377
Property, Plant and Equipment, net	128			138
Equity Investment in Timberland Venture	187			201
Deferred Tax Asset	18			17
Investment in Grantor Trusts (at Fair Value)	38			36
Other Assets	37			36
Total Assets	$	4,303		$	4,259
LIABILITIES
Current Liabilities:
Current Portion of Long-Term Debt	$	176		$	352
Line of Credit	351			348
Accounts Payable	29			25
Interest Payable	25			26
Wages Payable	19			20
Taxes Payable	16			9
Deferred Revenue	31			27
Other Current Liabilities	9			8
	656			815
Long-Term Debt	1,567			1,290
Note Payable to Timberland Venture	783			783
Other Liabilities	98			108
Total Liabilities	3,104			2,996
Commitments and Contingencies
STOCKHOLDERS’ EQUITY
Preferred Stock, $0.01 Par Value, Authorized Shares – 75.0, Outstanding – None	—			—
Common Stock, $0.01 Par Value, Authorized Shares – 300.6, Outstanding (net of Treasury Stock) – 161.6 at September 30, 2012 and 161.3 at December 31, 2011	2			2
Additional Paid-In Capital	2,273			2,261
Retained Earnings (Accumulated Deficit)	(108		)	(28		)
Treasury Stock, at Cost, Common Shares – 26.9 at September 30, 2012 and 26.9 at December 31, 2011	(938		)	(937		)
Accumulated Other Comprehensive Income (Loss)	(30		)	(35		)
Total Stockholders’ Equity	1,199			1,263
Total Liabilities and Stockholders’ Equity	$	4,303		$	4,259

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine Months Ended September 30,
(In Millions)	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	124		$	132
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization	87			70
Basis of Real Estate Sold	111			57
Equity Earnings from Timberland Venture	(42		)	(44		)
Distributions from Timberland Venture	56			56
Deferred Income Taxes	(1		)	2
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)	(6		)	14
Timber Deed Acquired	(98		)	—
Pension Plan Contributions	(10		)	(3		)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds	—			—
Other Working Capital Changes	5			—
Other	11			10
Net Cash Provided By Operating Activities	237			294
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland Acquisitions)	(52		)	(43		)
Timberlands and Minerals Acquired	(18		)	(88		)
Other	(1		)	—
Net Cash Used In Investing Activities	(71		)	(131		)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends	(204		)	(204		)
Borrowings on Line of Credit	1,712			1,097
Repayments on Line of Credit	(1,709		)	(961		)
Proceeds from Issuance of Long-Term Debt	450			—
Debt Issuance Costs	(3		)	—
Principal Payments and Retirement of Long-Term Debt	(350		)	(49		)
Proceeds from Stock Option Exercises	5			9
Acquisition of Treasury Stock	(1		)	(16		)
Net Cash Used In Financing Activities	(100		)	(124		)
Increase (Decrease) In Cash and Cash Equivalents	66			39
Cash and Cash Equivalents:
Beginning of Period	254			252
End of Period	$	320		$	291

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Quarter Ended September 30,
(In Millions)	2012			2011
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	59		$	50
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization	31			26
Basis of Real Estate Sold	36			14
Equity Earnings from Timberland Venture	(14		)	(14		)
Distributions from Timberland Venture	28			28
Deferred Income Taxes	—			(2		)
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)	(1		)	2
Pension Plan Contributions	(3		)	(3		)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds	—			35
Other Working Capital Changes	7			(4		)
Other	5			5
Net Cash Provided By Operating Activities	148			137
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland Acquisitions)	(17		)	(15		)
Timberlands and Minerals Acquired	(5		)	(76		)
Net Cash Used In Investing Activities	(22		)	(91		)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends	(68		)	(68		)
Borrowings on Line of Credit	583			542
Repayments on Line of Credit	(683		)	(467		)
Proceeds from Issuance of Long-Term Debt	450			—
Debt Issuance Costs	—			—
Principal Payments and Retirement of Long-Term Debt	(350		)	—
Proceeds from Stock Option Exercises	2			—
Acquisition of Treasury Stock	—			(15		)
Net Cash Used In Financing Activities	(66		)	(8		)
Increase (Decrease) In Cash and Cash Equivalents	60			38
Cash and Cash Equivalents:
Beginning of Period	260			253
End of Period	$	320		$	291

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

SEGMENT DATA

(UNAUDITED)

	Nine Months Ended September 30,
(In Millions)	2012			2011
Revenues:
Northern Resources	$	185		$	167
Southern Resources	312			266
Real Estate	243			208
Manufacturing	246			208
Other	16			15
Eliminations	(17		)	(12		)
Total Revenues	$	985		$	852
Operating Income (Loss):
Northern Resources	$	15		$	17
Southern Resources	66			55
Real Estate	113			134
Manufacturing	22			12
Other(A)	14			16
Other Costs and Eliminations, net	(46		)	(42		)
Total Operating Income	$	184		$	192
Adjusted EBITDA by Segment: (B)
Northern Resources	$	35		$	36
Southern Resources	118			92
Real Estate	225			192
Manufacturing	33			22
Other	14			16
Other Costs and Eliminations, net	(45		)	(41		)
Total	$	380		$	317

(A) During the first nine months of 2011, the company received a payment of $2 million for the settlement of a dispute that related to certain mineral rights. This amount is reported as Other Operating Gain/(Loss) in our Other Segment and is included in Other Operating Income (Expense), net in the Consolidated Statements of Income.

(B) Refer to the separate schedule, "Segment Data - Adjusted EBITDA" for reconciliations of Adjusted EBITDA to operating income and net cash provided by operating activities.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

SEGMENT DATA

(UNAUDITED)

	Quarter Ended September 30,
(In Millions)	2012			2011
Revenues:
Northern Resources	$	65		$	68
Southern Resources	110			93
Real Estate	96			67
Manufacturing	85			67
Other	5			5
Eliminations	(7		)	(7		)
Total Revenues	$	354		$	293
Operating Income (Loss):
Northern Resources	$	5		$	7
Southern Resources	23			21
Real Estate	54			46
Manufacturing	9			3
Other	5			5
Other Costs and Eliminations, net	(17		)	(13		)
Total Operating Income	$	79		$	69
Adjusted EBITDA by Segment: (A)
Northern Resources	$	12		$	14
Southern Resources	42			35
Real Estate	90			60
Manufacturing	13			7
Other	5			5
Other Costs and Eliminations, net	(16		)	(13		)
Total	$	146		$	108

(A) Refer to the separate schedule, "Segment Data - Adjusted EBITDA" for reconciliations of Adjusted EBITDA to operating income and net cash provided by operating activities.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

SELECTED OPERATING STATISTICS

(UNAUDITED)

		2012
		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	19	$	20	$	20			$	20
Pulpwood	$/Ton Stumpage	$	10	$	10	$	10			$	10
Northern Resources
Sawlog	$/Ton Delivered	$	67	$	71	$	69			$	69
Pulpwood	$/Ton Delivered	$	42	$	42	$	42			$	42
Lumber (1)	$/MBF	$	529	$	551	$	525			$	535
Plywood (1)	$/MSF	$	387	$	409	$	432			$	409
Fiberboard (1)	$/MSF	$	607	$	620	$	636			$	622
Sales Volume
Southern Resources
Sawlog	1,000 Tons	1,340		1,533		1,533				4,406
Pulpwood	1,000 Tons	1,842		1,933		2,151				5,926
Total Harvest		3,182		3,466		3,684		—		10,332
Northern Resources
Sawlog	1,000 Tons	656		632		679				1,967
Pulpwood	1,000 Tons	452		316		441				1,209
Total Harvest		1,108		948		1,120		—		3,176
Lumber	MBF	30,199		30,340		27,645				88,184
Plywood	MSF	53,301		51,397		48,984				153,682
Fiberboard	MSF	44,701		52,475		54,992				152,168
		2011
		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		YTD
Sales Realization	Units
Southern Resources
Sawlog	$/Ton Stumpage	$	20	$	19	$	20	$	20	$	19
Pulpwood	$/Ton Stumpage	$	10	$	9	$	9	$	9	$	9
Northern Resources
Sawlog	$/Ton Delivered	$	69	$	72	$	71	$	67	$	69
Pulpwood	$/Ton Delivered	$	40	$	40	$	42	$	41	$	41
Lumber (1)	$/MBF	$	533	$	529	$	493	$	515	$	518
Plywood (1)	$/MSF	$	371	$	382	$	382	$	379	$	379
Fiberboard (1)	$/MSF	$	608	$	608	$	607	$	611	$	608
Sales Volume
Southern Resources
Sawlog	1,000 Tons	1,286		1,126		1,289		1,268		4,969
Pulpwood	1,000 Tons	1,494		1,592		1,833		1,903		6,822
Total Harvest		2,780		2,718		3,122		3,171		11,791
Northern Resources
Sawlog	1,000 Tons	506		471		661		681		2,319
Pulpwood	1,000 Tons	478		244		500		458		1,680
Total Harvest		984		715		1,161		1,139		3,999
Lumber	MBF	29,250		29,654		29,979		27,042		115,925
Plywood	MSF	44,156		44,842		41,632		41,803		172,433
Fiberboard	MSF	40,690		43,070		38,485		37,899		160,144

(1) Represents prices at mill level.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

LAND SALE STATISTICS

(UNAUDITED)

	2012
	1st Qtr		2nd Qtr (2)		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic	4,385		17,870		5,750				28,005
Large Non-strategic (1)	69,770		—		99,800				169,570
Conservation	1,145		1,320		5,400				7,865
HBU/Recreation	4,030		6,720		5,410				16,160
Development Properties	—		—		—				—
Conservation Easements	n/a		n/a		n/a				n/a
	79,330		25,910		116,360				221,600
Price per Acre
Small Non-strategic	$	1,115	$	1,165	$	1,455			$	1,215
Large Non-strategic	$	1,210	$	—	$	675			$	895
Conservation	$	1,560	$	2,315	$	905			$	1,240
HBU/Recreation	$	2,140	$	1,955	$	2,100			$	2,050
Development Properties	$	—	$	—	$	—			$	—
Conservation Easements	$	—	$	28	$	—			$	28
Revenue, ($ millions)
Small Non-strategic	$	5	$	21	$	8			$	34
Large Non-strategic	$	84	$	—	$	67			$	151
Conservation	$	2	$	3	$	5			$	10
HBU/Recreation	$	9	$	13	$	11			$	33
Development Properties	$	—	$	—	$	—			$	—
Conservation Easements	$	—	$	10	$	—			$	10
	$	100	$	47	$	91			$	238
Proceeds from Real Estate Joint Venture (4)	$	—	$	—	$	5			$	5
Basis of Real Estate Sold (5)	$	63	$	12	$	36			$	111
	2011
	1st Qtr		2nd Qtr (3)		3rd Qtr		4th Qtr		YTD
Acres Sold
Small Non-strategic	2,560		2,695		11,525		5,385		22,165
Large Non-strategic (1)	30,295		—		—		18,155		48,450
Conservation	335		59,425		370		7,295		67,425
HBU/Recreation	7,795		6,320		24,500		8,680		47,295
Development Properties	—		—		20		—		20
Conservation Easements	n/a		n/a		n/a		n/a		n/a
	40,985		68,440		36,415		39,515		185,355
Price per Acre
Small Non-strategic	$	1,015	$	1,125	$	1,230	$	1,345	$	1,220
Large Non-strategic	$	1,405	$	—	$	—	$	3,300	$	2,115
Conservation	$	1,685	$	1,050	$	1,270	$	980	$	1,050
HBU/Recreation	$	2,100	$	2,060	$	1,950	$	2,100	$	2,015
Development Properties	$	—	$	—	$	6,405	$	—	$	6,405
Conservation Easements	$	—	$	—	$	460	$	—	$	460
Revenue, ($ millions)
Small Non-strategic	$	2	$	4	$	14	$	7	$	27
Large Non-strategic	$	43	$	—	$	—	$	60	$	103
Conservation	$	1	$	62	$	—	$	7	$	70
HBU/Recreation	$	16	$	13	$	48	$	19	$	96
Development Properties	$	—	$	—	$	—	$	—	$	—
Conservation Easements	$	—	$	—	$	5	$	—	$	5
	$	62	$	79	$	67	$	93	$	301
Basis of Real Estate Sold (5)	$	19	$	24	$	14	$	19	$	76

Exhibit 99.2

Plum Creek Timber Company, Inc.

Notes to Land Sale Statistics

(Unaudited)

(1) During the first quarter of 2012, the company sold 69,800 acres of Large Non-strategic lands located in the Florida panhandle area for $84.5 million. During the third quarter of 2012, the company sold 99,800 acres of Large Non-strategic lands located in Wisconsin for $67.1 million. During the first quarter of 2011, the company sold 30,300 acres of Large Non-strategic lands located in Mississippi for $42.6 million. During the fourth quarter of 2011, the company sold 18,200 acres of Large Non-strategic lands located in Oregon for $60 million.

(2) During the second quarter of 2012, the company received $10 million in exchange for placing a conservation easement on approximately 360,000 acres in Maine.

(3) During the second quarter of 2011, the company's Conservation sales consisted primarily of 26,800 acres in Arkansas and Louisiana and 31,500 acres in Florida.

(4) Not reflected in the land sale statistics (acres sold, price per acre and revenue).

(5) Includes $58 million in the first quarter of 2012 from a 69,800 acre Large Non-strategic sale located primarily in the Florida panhandle area, $26 million in the third quarter of 2012 from a 99,800 acre Large Non-strategic sale in Wisconsin, $13 million in the first quarter of 2011 from a 30,300 acre Large Non-strategic sale in Mississippi and $8 million in the fourth quarter of 2011 from an 18,200 acre Large Non-strategic sale in Oregon.

Exhibit 99.2

PLUM CREEK TIMBER COMPANY, INC.

DEBT MATURITIES SCHEDULE

September 30, 2012

(UNAUDITED)

	Borrowings
	Principal		Weighted Avg. Interest Rate
Quarterly Maturities through 2013:
4th Qtr 2012	$	3	8.050	%
1st Qtr 2013	$	174	6.180	%
4th Qtr 2013	$	76	7.773	%	(1)
Annual Maturities through 2014:
2014	$	3	8.050	%

(1) Principal amount composed of senior notes with principal amounts of $3 million and $73 million and interest rates of 8.050% and 7.760%, respectively.

Exhibit 99.2

Plum Creek Timber Company, Inc

Segment Data - Adjusted EBITDA

Reconciliation of Operating Income and Net Cash

Provided by Operating Activities

(Unaudited)

We define Adjusted EBITDA as earnings from continuing operations, excluding equity method earnings, and before interest, taxes, depreciation, depletion, amortization, and basis in lands sold. Adjusted EBITDA is not considered a measure of financial performance under U.S. generally accepted accounting principles (U.S. GAAP) and the items excluded from Adjusted EBITDA are significant components of our consolidated financial statements.

We present Adjusted EBITDA as a supplemental performance measure because we believe it facilitates operating performance comparisons from period to period, and each business segment’s contribution to that performance, by eliminating non-cash charges to earnings, which can vary significantly by business segment. These non-cash charges include timber depletion, depreciation of fixed assets and the basis in lands sold. We also use Adjusted EBITDA as a supplemental liquidity measure because we believe it is useful in measuring our ability to generate cash. In addition, we believe Adjusted EBITDA is commonly used by investors, lenders and rating agencies to assess our financial performance.

A reconciliation of Adjusted EBITDA to net income and net cash from operating activities, the most directly comparable U.S. GAAP performance and liquidity measures, is provided in the following schedules:

	Nine Months Ended September 30, 2012
	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment
Northern Resources	$	15		$	20	$	—	$	35
Southern Resources	66			52		—		118
Real Estate	113			1		111		225
Manufacturing	22			11		—		33
Other	14			—		—		14
Other Costs and Eliminations	(47		)	1		—		(46		)
Other Unallocated Operating Income (Expense), net	1			—		—		1
Total	$	184		$	85	$	111	$	380
Reconciliation to Net Income(1)
Equity Earnings from Timberland Venture	42
Interest Expense	(104		)
(Provision) Benefit for Income Taxes	2
Net Income	$	124
Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations								$	237
Interest Expense								104
Amortization of Debt Costs								(2		)
Provision / (Benefit) for Income Taxes								(2		)
Distributions from Timberland Venture								(56		)
Deferred Income Taxes								1
Gain on Sale of Properties and Other Assets								—
Deferred Revenue from Long-Term Gas Leases								6
Timber Deed Acquired								98
Pension Plan Contributions								10
Working Capital Changes								(5		)
Other								(11		)
Adjusted EBITDA								$	380

(1) Includes reconciling items not allocated to segments for financial reporting purposes.

Exhibit 99.2

	Nine Months Ended September 30, 2011
	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment
Northern Resources	$	17		$	19	$	—	$	36
Southern Resources	55			37		—		92
Real Estate	134			1		57		192
Manufacturing	12			10		—		22
Other	16			—		—		16
Other Costs and Eliminations	(43		)	1		—		(42		)
Other Unallocated Operating Income (Expense), net	1			—		—		1
Total	$	192		$	68	$	57	$	317
Reconciliation to Net Income(1)
Equity Earnings from Timberland Venture	44
Interest Expense	(104		)
(Provision) Benefit for Income Taxes	—
Net Income	$	132
Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations								$	294
Interest Expense								104
Amortization of Debt Costs								(2		)
Provision / (Benefit) for Income Taxes								—
Distributions from Timberland Venture								(56		)
Deferred Income Taxes								(2		)
Gain on Sale of Properties and Other Assets								—
Deferred Revenue from Long-Term Gas Leases								(14		)
Timber Deed Acquired								—
Pension Plan Contributions								3
Working Capital Changes								—
Other								(10		)
Adjusted EBITDA								$	317

(1) Includes reconciling items not allocated to segments for financial reporting purposes.

Exhibit 99.2

	Quarter Ended September 30, 2012
	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment
Northern Resources	$	5		$	7	$	—	$	12
Southern Resources	23			19		—		42
Real Estate	54			—		36		90
Manufacturing	9			4		—		13
Other	5			—		—		5
Other Costs and Eliminations	(17		)	1		—		(16		)
Other Unallocated Operating Income (Expense), net	—			—		—		—
Total	$	79		$	31	$	36	$	146
Reconciliation to Net Income(1)
Equity Earnings from Timberland Venture	14
Interest Expense	(35		)
(Provision) Benefit for Income Taxes	1
Net Income	$	59
Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations								$	148
Interest Expense								35
Amortization of Debt Costs								—
Provision / (Benefit) for Income Taxes								(1		)
Distributions from Timberland Venture								(28		)
Deferred Income Taxes								—
Gain on Sale of Properties and Other Assets								—
Deferred Revenue from Long-Term Gas Leases								1
Timber Deed Acquired								—
Pension Plan Contributions								3
Working Capital Changes								(7		)
Other								(5		)
Adjusted EBITDA								$	146

(1) Includes reconciling items not allocated to segments for financial reporting purposes.

Exhibit 99.2

	Quarter Ended September 30, 2011
	Operating Income			Depreciation, Depletion and Amortization		Basis of Real Estate Sold		Adjusted EBITDA
By Segment
Northern Resources	$	7		$	7	$	—	$	14
Southern Resources	21			14		—		35
Real Estate	46			—		14		60
Manufacturing	3			4		—		7
Other	5			—		—		5
Other Costs and Eliminations	(13		)	—		—		(13		)
Other Unallocated Operating Income (Expense), net	—			—		—		—
Total	$	69		$	25	$	14	$	108
Reconciliation to Net Income(1)
Equity Earnings from Timberland Venture	14
Interest Expense	(34		)
(Provision) Benefit for Income Taxes	1
Net Income	$	50
Reconciliation to Net Cash Provided By Operating Activities
Net Cash Flows from Operations								$	137
Interest Expense								34
Amortization of Debt Costs								(1		)
Provision / (Benefit) for Income Taxes								(1		)
Distributions from Timberland Venture								(28		)
Deferred Income Taxes								2
Gain on Sale of Properties and Other Assets								—
Deferred Revenue from Long-Term Gas Leases								(2		)
Timber Deed Acquired								—
Pension Plan Contributions								3
Working Capital Changes								(31		)
Other								(5		)
Adjusted EBITDA								$	108

(1) Includes reconciling items not allocated to segments for financial reporting purposes.