Plum Creek Timber (PCL) 10-Q 5 Aug 09 2009 Q2 Quarterly report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Per Share data	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
PLUM CREEK TIMBER CO INC
REVENUES:
Timber	$123	$192	$262	$393
Real Estate	78	57	346	109
Manufacturing	66	121	124	226
Other	5	6	10	11
Total Revenues	272	376	742	739
Cost of Goods Sold:
Timber	98	137	206	276
Real Estate	33	20	128	36
Manufacturing	64	128	140	240
Other	1	1	1	1
Total Cost of Goods Sold	196	286	475	553
Selling, General and Administrative	23	33	55	63
Total Costs and Expenses	219	319	530	616
Other Operating Income (Expense), net	0	0	0	3
Operating Income	53	57	212	126
Equity Earnings from Timberland Venture	14	0	29	0
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	23	34	47	70
Interest Expense (Note Payable to Timberland Venture)	15	0	29	0
Interest Expense, net	38	34	76	70
Gain on Extinguishment of Debt			1	0
Income before Income Taxes	29	23	166	56
Benefit for Income Taxes	(3)	(8)	(23)	(13)
Net Income	32	31	189	69
PER SHARE AMOUNTS:
Net Income per Share - Basic	0.19	0.18	1.15	0.4
Net Income per Share - Diluted	0.19	0.18	1.15	0.4
Dividends Declared - per Common Share Outstanding	0.42	0.42	0.84	0.84
Weighted-Average Number of Shares Outstanding
- Basic	162.8	171.1	163.8	171.4
- Diluted	162.9	171.6	163.9	171.8
PLUM CREEK TIMBERLANDS L P
REVENUES:
Timber	123	192	262	393
Real Estate	78	57	346	109
Manufacturing	66	121	124	226
Other	5	6	10	11
Total Revenues	272	376	742	739
Cost of Goods Sold:
Timber	98	137	206	276
Real Estate	33	20	128	36
Manufacturing	64	128	140	240
Other	1	1	1	1
Total Cost of Goods Sold	196	286	475	553
Selling, General and Administrative	23	33	55	63
Total Costs and Expenses	219	319	530	616
Other Operating Income (Expense), net	0	0	0	3
Operating Income	53	57	212	126
Equity Earnings from Timberland Venture	14	0	29	0
Interest Expense, net:
Interest Expense, net	23	34	47	70
Gain on Extinguishment of Debt			1	0
Income before Income Taxes	44	23	195	56
Benefit for Income Taxes	(3)	(8)	(23)	(13)
Net Income before Allocation to Series T-1 Preferred Interest and Partners	47	31	218	69
Net Income Allocable to Series T-1 Preferred Interest	(15)	0	(29)	0
Net Income	$32	$31	$189	$69

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
PLUM CREEK TIMBER CO INC
Current Assets:
Cash and Cash Equivalents	$347	$369
Accounts Receivable	34	22
Like-Kind Exchange Funds Held in Escrow	0	48
Taxes Receivable	6	23
Inventories	53	74
Deferred Tax Asset	9	11
Real Estate Development Properties	3	4
Assets Held for Sale	87	137
Other Current Assets	15	11
Assets, Current, Total	554	699
Timber and Timberlands, net	3,565	3,638
Property, Plant and Equipment, net	160	177
Equity Investment in Timberland Venture	203	199
Deferred Tax Asset	19	0
Investment in Grantor Trusts (at Fair Value)	26	25
Other Assets	41	42
Total Assets	4,568	4,780
Current Liabilities:
Current Portion of Long-Term Debt	110	158
Accounts Payable	31	35
Interest Payable	27	30
Wages Payable	15	28
Taxes Payable	19	18
Deferred Revenue	26	17
Other Current Liabilities	16	21
Liabilities, Current, Total	244	307
Long-Term Debt	1,703	1,793
Line of Credit	206	231
Note Payable to Timberland Venture	783	783
Deferred Tax Liability	0	4
Other Liabilities	90	90
Total Liabilities	3,026	3,208
Commitments and Contingencies	0	0
STOCKHOLDERS' EQUITY
Preferred Stock, $0.01 Par Value, Authorized Shares - 75.0, Outstanding - None	0	0
Common Stock, $0.01 Par Value, Authorized Shares - 300.6, Outstanding (net of Treasury Stock) - 162.8 at June 30, 2009 and 166.0 at December 31, 2008	2	2
Additional Paid-In Capital	2,230	2,225
Retained Earnings	200	149
Treasury Stock, at Cost, Common Shares - 24.8 at June 30, 2009 and 21.5 at December 31, 2008	(860)	(773)
Accumulated Other Comprehensive Income (Loss)	(30)	(31)
Total Stockholders' Equity	1,542	1,572
Total Liabilities and Stockholders' Equity	4,568	4,780
PLUM CREEK TIMBERLANDS L P
Current Assets:
Cash and Cash Equivalents	347	369
Accounts Receivable	34	22
Like-Kind Exchange Funds Held in Escrow	0	48
Taxes Receivable	6	23
Inventories	53	74
Deferred Tax Asset	9	11
Real Estate Development Properties	3	4
Assets Held for Sale	87	137
Other Current Assets	15	11
Assets, Current, Total	554	699
Timber and Timberlands, net	3,565	3,638
Property, Plant and Equipment, net	160	177
Equity Investment in Timberland Venture	203	199
Deferred Tax Asset	19	0
Investment in Grantor Trusts (at Fair Value)	27	26
Other Assets	41	42
Total Assets	4,569	4,781
Current Liabilities:
Current Portion of Long-Term Debt	110	158
Accounts Payable	31	35
Interest Payable	20	23
Wages Payable	15	28
Taxes Payable	19	18
Deferred Revenue	26	17
Other Current Liabilities	16	21
Liabilities, Current, Total	237	300
Long-Term Debt	1,703	1,793
Line of Credit	206	231
Deferred Tax Liability	0	4
Other Liabilities	91	91
Total Liabilities	2,237	2,419
Commitments and Contingencies	0	0
PARTNERSHIP CAPITAL
Series T-1 Preferred Interest	790	790
Partners' Capital (Common Limited Partnership Interests)	1,542	1,572
Total Partnership Capital	2,332	2,362
Total Liabilities and Partnership Capital	$4,569	$4,781

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions, except Per Share data	Jun. 30, 2009	Dec. 31, 2008
PLUM CREEK TIMBER CO INC
Preferred Stock, Par Value	0.01	0.01
Preferred Stock, Authorized Shares	75	75
Preferred Stock, Outstanding	0	0
Common Stock, Par Value	0.01	0.01
Common Stock, Authorized Shares	300.6	300.6
Common Stock, Outstanding (net of Treasury Stock)	162.8	166
Treasury Stock, Common Shares	24.8	21.5
PLUM CREEK TIMBERLANDS L P
Investment in Grantor Trusts, amounts at Fair Value	$26	$25

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
PLUM CREEK TIMBER CO INC
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$189	$69
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (Includes $10 Lumber Impairment Loss in 2009 and 2008)	57	76
Basis of Real Estate Sold	118	22
Equity Earnings from Timberland Venture	(29)	0
Distribution from Timberland Venture	25	0
Expenditures for Real Estate Development	(1)	(5)
Deferred Income Taxes	(21)	(8)
Gain on Extinguishment of Debt	(1)	0
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)	(4)	18
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds	48	(61)
Income Tax Receivable	17	0
Other Working Capital Changes	(8)	(17)
Other	4	0
Net Cash Provided By Operating Activities	394	94
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland Acquisitions)	(28)	(29)
Timberlands Acquired	0	(1)
Net Cash Used In Investing Activities	(28)	(30)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends	(138)	(144)
Borrowings on Line of Credit	431	755
Repayments on Line of Credit	(456)	(942)
Proceeds from Issuance of Long-Term Debt	0	250
Principal Payments and Retirement of Long-Term Debt	(138)	(47)
Proceeds from Stock Option Exercises	0	1
Acquisition of Treasury Stock	(87)	(51)
Other	0	(1)
Net Cash Used In Financing Activities	(388)	(179)
Increase (Decrease) In Cash and Cash Equivalents	(22)	(115)
Cash and Cash Equivalents:
Beginning of Period	369	240
End of Period	347	125
PLUM CREEK TIMBERLANDS L P
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income before Allocation to Preferred Partnership Interest and Partners	218	69
Net Income	189	69
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (Includes $10 Lumber Impairment Loss in 2009 and 2008)	57	76
Basis of Real Estate Sold	118	22
Equity Earnings from Timberland Venture	(29)	0
Distribution from Timberland Venture	25	0
Expenditures for Real Estate Development	(1)	(5)
Deferred Income Taxes	(21)	(8)
Gain on Extinguishment of Debt	(1)	0
Deferred Revenue from Long-Term Gas Leases (Net of Amortization)	(4)	18
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds	48	(61)
Income Tax Receivable	17	0
Other Working Capital Changes	(8)	(17)
Other	4	0
Net Cash Provided By Operating Activities	423	94
CASH FLOWS FROM INVESTING ACTIVITIES
Capital Expenditures (Excluding Timberland Acquisitions)	(28)	(29)
Timberlands Acquired	0	(1)
Net Cash Used In Investing Activities	(28)	(30)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash Distributions to Partners	(225)	(194)
Cash Distributions for Series T-1 Preferred Interest	(29)	0
Borrowings on Line of Credit	431	755
Repayments on Line of Credit	(456)	(942)
Proceeds from Issuance of Long-Term Debt	0	250
Principal Payments and Retirement of Long-Term Debt	(138)	(47)
Other	0	(1)
Net Cash Used In Financing Activities	(417)	(179)
Increase (Decrease) In Cash and Cash Equivalents	(22)	(115)
Cash and Cash Equivalents:
Beginning of Period	369	240
End of Period	$347	$125

2_Statement Of Cash Flows Indir

Statement Of Cash Flows Indirect (Parenthetical) (USD $)
In Millions	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
PLUM CREEK TIMBER CO INC
Depreciation, Depletion and Amortization, Lumber Impairment Loss	$10	$10
PLUM CREEK TIMBERLANDS L P
Depreciation, Depletion and Amortization, Lumber Impairment Loss	$10	$10

Notes to Financial Statements

Notes to Financial Statements
	6 Months Ended Jun. 30, 2009 USD / shares
PLUM CREEK TIMBER CO INC
Notes to Financial Statements [Abstract]
Basis of Presentation	Note 1. Basis of Presentation General. When we refer to Plum Creek, the company, we, us, or our, we mean Plum Creek Timber Company, Inc., a Delaware Corporation and a real estate investment trust, or REIT, and all of its wholly-owned consolidated subsidiaries. The consolidated financial statements include all of the accounts of Plum Creek and its subsidiaries.At June30, 2009, the company owned and managed approximately 7.2million acres of timberlands in the Northwest, Southern, and Northeast United States, and owned and operated eight wood product conversion facilities in the Northwest United States. Included in the 7.2million acres are about 1.5million acres of higher and better use timberlands, which are expected to be sold and/or developed over approximately the next 15 years for recreational, conservation or residential purposes. In addition, the company has approximately 250,000 acres of non-strategic timberlands, which are expected to be sold over the next five years. In the meantime, all of these timberlands continue to be used productively in our business of growing and selling timber. Plum Creek has elected to be taxed as a REIT under sections 856-860 of the United States Internal Revenue Code and, as such, generally does not pay corporate-level income tax. However, the company conducts certain non-REIT activities through various taxable REIT subsidiaries, which are subject to corporate-level income tax. These activities include our manufacturing operations, the harvesting and selling of logs, and the development and/or sales of some of our higher and better use timberlands. Plum Creeks overall effective tax rate is lower than the federal statutory corporate rate due to Plum Creeks status as a REIT. Intercompany transactions and accounts have been eliminated in consolidation. All transactions are denominated in United States dollars. The consolidated financial statements included in this Form 10-Q are unaudited and do not contain all of the information required by U.S. generally accepted accounting principles to be included in a full set of financial statements. The consolidated balance sheet at December31, 2008, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The audited financial statements in the companys 2008 Annual Report on Form 10-K include a summary of significant accounting policies of the company and should be read in conjunction with this Form 10-Q. In the opinion of management, all material adjustments necessary to present fairly the results of operations for such periods have been included in this Form 10-Q. All such adjustments are of a normal and recurring nature. The results of operations for interim periods are not necessarily indicative of the results of operations for the entire year. New Accounting Pronouncements (Adopted during 2009) SFAS No.165. In May 2009, the Financial Accounting Standards Board (FASB) issued SFAS No.165, Subsequent Events (SFAS No.165). SFAS No.165 establishes principles and requirements for subsequ
Earnings Per Share	Note 2. Earnings Per Share The following tables set forth the reconciliation of basic and diluted earnings per share for the quarterly and six-month periods ended June30 (in millions, except per share amounts): QuarterEndedJune30, 2009 2008 Net Income Available to Common Stockholders $ 32 $ 31 Denominator for Basic Earnings per Share 162.8 171.1 Effect of Dilutive Securities Stock Options 0.1 0.4 Effect of Dilutive Securities Restricted Stock, Restricted Stock Units, Dividend Equivalents and Value Management Plan 0.1 Denominator for Diluted Earnings per Share Adjusted for Dilutive Securities 162.9 171.6 Per Share Amounts: Net Income Per Share Basic $ 0.19 $ 0.18 Net Income Per Share Diluted $ 0.19 $ 0.18 SixMonthsEndedJune30, 2009 2008 Net Income Available to Common Stockholders $ 189 $ 69 Denominator for Basic Earnings per Share 163.8 171.4 Effect of Dilutive Securities Stock Options 0.1 0.3 Effect of Dilutive Securities Restricted Stock, Restricted Stock Units, Dividend Equivalents and Value Management Plan 0.1 Denominator for Diluted Earnings per Share Adjusted for Dilutive Securities 163.9 171.8 Per Share Amounts: Net Income Per Share Basic $ 1.15 $ 0.40 Net Income Per Share Diluted $ 1.15 $ 0.40 Antidilutive options were excluded for certain periods from the computation of diluted earnings per share because the options exercise prices were greater than the average market price of the common shares. Antidilutive options were as follows for the quarterly and six-month periods ended June30 (shares in millions): QuarterEndedJune30, 2009 2008 Number of Options 2.2 1.0 Range of Exercise Prices $33.75to$43.23 $39.31to$43.23 Expiration on or before February 2019 May 2018 Six Months Ended June30, 2009 2008 Number of Options 2.3 0.9 Range of Exercise Prices $30.70to$43.23 $39.31to$43.23 Expiration on or before February 2019 May 2018
Variable Interest Entities	Note 3. Variable Interest Entities On October1, 2008, the company contributed 454,000 acres of timberlands located in its Southern Resources Segment to Southern Diversified Timber, LLC (the Timberland Venture) in exchange for a $705 million preferred interest and a 9% common interest valued at $78 million. Following the contribution, the company borrowed $783 million from the Timberland Venture (Note Payable to Timberland Venture). The Timberland Venture is a variable interest entity in accordance with FASB Interpretation No.46(R), Consolidation of Variable Interest Entities (FIN 46(R)). Besides quarterly interest payments on the Note Payable to Timberland Venture, the company has not provided financing or other support to the venture. The venture is financed by a line of credit obtained by the Timberland Venture. We are not the primary beneficiary of the Timberland Venture. The company does not manage the day-to-day operations of the venture, has only limited protective rights and its involvement is generally limited to receiving distributions on its preferred and common interests. We are not the primary beneficiary because we are not required to absorb the majority of the expected losses as defined by FIN 46(R). The common interests are required to absorb losses based on positive capital accounts before any losses can be allocated to our preferred interest, and we own a 9% common interest. The carrying amount of the investment in the venture is $203 million at June30, 2009 and $199 million at December31, 2008, and it is reported in the Consolidated Balance Sheets as Equity Investment in Timberland Venture. The increase in the investment is a result of recognizing equity earnings of $29 million, offset by a preferred cash distribution of $25 million paid by the Timberland Venture to the company during the first quarter of 2009. Our maximum exposure to loss is $203 million, the carrying amount of the investment in the venture. Generally, losses are first allocated among the common interests based on positive capital accounts in which we hold a 9% common interest. No losses are allocated to our preferred interest ($705 million) until the common interests have absorbed losses of approximately $861 million.
Inventory	Note 4. Inventory Inventories, accounted for using the lower of average cost or market, consisted of the following (inmillions): June30,2009 December31,2008 Raw Materials (primarily logs) $ 8 $ 23 Work-In-Process 2 3 Finished Goods 31 36 41 62 Supplies 12 12 Total $ 53 $ 74
Timber and Timberlands	Note 5. Timber and Timberlands Timber and Timberlands consisted of the following (in millions): June30,2009 December31,2008 Timber and Logging Roads, net $ 2,385 $ 2,443 Timberlands 1,180 1,195 Timber and Timberlands, net $ 3,565 $ 3,638
Property, Plant and Equipment	Note 6. Property, Plant and Equipment Property, Plant and Equipment consisted of the following (in millions): June30,2009 December31,2008 Land, Buildings and Improvements $ 86 $ 92 Machinery and Equipment 306 310 392 402 Accumulated Depreciation (232 ) (225 ) Property, Plant and Equipment, net $ 160 $ 177 During the first quarter of 2009, the company conducted an analysis to rationalize and consolidate its lumber operations. The analysis was performed by the company due to the significant and sustained decline in lumber demand along with the companys expectations for continued weakness in this business. As a result of this analysis, the company concluded that certain of its lumber manufacturing assets were impaired. Consequently, during the first quarter of 2009, the company recorded an impairment charge of $10 million related to these lumber manufacturing assets. During the second quarter of 2008, the company recorded an impairment charge of $10 million related to its lumber manufacturing assets. The impairment losses are reflected in the operating income of the Manufactured Products Segment and included in Cost of Goods Sold for Manufacturing in the Consolidated Statements of Income. The fair value of the impaired assets was determined by the company using expected future cash flows discounted at a risk-adjusted rate of interest. See Note 10 of the Notes to Consolidated Financial Statements.
Income Taxes	Note 7. Income Taxes Plum Creek has elected to be taxed as a REIT under sections 856-860 of the United States Internal Revenue Code. A REIT generally does not pay corporate-level income tax if it distributes 100% of its taxable income to shareholders and satisfies other organizational and operational requirements as set forth in the Internal Revenue Code. If a company fails to qualify as a REIT in any taxable year, it will be subject to federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. As a consequence of the October6, 2001 merger with The Timber Company, which involved merging a taxable entity into a nontaxable entity, Plum Creek will generally be subject to corporate-level tax (built-in gains tax) if the company makes a taxable disposition of certain property acquired in the merger within the ten-year period following the merger date. The built-in gains tax applies to gains from such asset sales to the extent that the fair value of the property exceeds its tax basis at the merger date. Built-in gains tax is generally not payable on dispositions of property to the extent the proceeds from such dispositions are reinvested in qualifying like-kind replacement property. The built-in gains tax does not apply to income generated from the harvesting and sale of timber. In connection with the merger with The Timber Company, Plum Creek wrote-off all of The Timber Companys deferred income tax liability related to timber and timberlands except for $11 million. The $11 million deferred income tax liability related to the book-tax basis difference of timber and timberlands that were expected to be sold, and subject to, the built-in gains tax during the ten-year period ending October6, 2011. During the period October6, 2001 to December31, 2008, the $11 million deferred income tax liability was reduced by $5 million due to a remeasurement of the amount of deferred income taxes needed and by $2 million due to the payment or accrual of tax in connection with sales of timberlands subject to the built-in gains tax. At December31, 2008, the company estimated it needed a deferred tax liability of approximately $4 million based on projected timberland sales subject to the built-in gains tax for the period January1, 2009 to October6, 2011, and Plum Creeks ability to successfully reinvest proceeds in like-kind properties. During the first quarter of 2009, because of a change in tax law the company estimated it needs a deferred tax liability of $1 million in connection with expected sales of timberlands that are subject to the built-in gains tax. Therefore, in accordance with the remeasurement requirements of Statement of Financial Accounting Standards No.109, Accounting for Income Taxes, the company reduced its deferred tax liability by $3 million during the first quarter of 2009. Furthermore in the first quarter of 2009, because of the change in tax law the company reversed $5 million of tax expense related to built-in gains that had been accrued in 2008.
Borrowings	Note 8. Borrowings Debt consisted of the following (in millions): June30,2009 December31,2008 Variable Rate Debt Term Credit Agreement (A) $ 350 $ 350 Term Credit Agreement (B) 250 250 Revolving Line of Credit (C) 206 231 Fixed Rate Debt Senior Notes 1,213 1,351 Note Payable to Timberland Venture 783 783 Total Debt 2,802 2,965 Less:Current Portion (110 ) (158 ) Long-Term Portion $ 2,692 $ 2,807 (A) As of June30, 2009, the interest rate on the $350 million term credit agreement was 0.76%. (B) As of June30, 2009, the interest rate on the $250 million term credit agreement was 1.31%. (C) As of June30, 2009, the weighted-average interest rate for the borrowings on the line of credit was 0.72%. As of June30, 2009, we had $206 million of borrowings and $14million of standby letters of credit outstanding; $530 million remained available for borrowing under our $750 million line of credit. As of July1, 2009, all of the borrowings outstanding under our line of credit were repaid. During March 2009, the company paid approximately $4 million to retire $5 million of principal for Senior Notes due in 2015. As a result, the company recognized a gain of $1 million which was net of associated unamortized discount and debt issuance costs. The $1 million gain is classified as Gain on Extinguishment of Debt in the Consolidated Statements of Income for the six-months ended June30, 2009.
Stockholders' Equity	Note 9. Stockholders Equity The changes in the companys stockholders equity accounts were as follows during 2009 (in millions): Common Stock Accumulated Other Comprehensive Income (Loss) Shares Dollars Paid-in Capital Retained Earnings Treasury Stock Total Equity January1, 2009 166.0 $ 2 $ 2,225 $ 149 $ (773 ) $ (31 ) $ 1,572 Net Income 157 157 Other Comprehensive Income (Loss), net of tax (2 ) (2 ) Total Comprehensive Income 155 Dividends (69 ) (69 ) Shares Issued under Stock Incentive Plans 0.1 1 1 Share-based Compensation 2 2 Common Stock Repurchased (3.3 ) (87 ) (87 ) March31, 2009 162.8 2 2,228 237 (860 ) (33 ) 1,574 Net Income 32 32 Other Comprehensive Income (Loss), net of tax 3 3 Total Comprehensive Income 35 Dividends (69 ) (69 ) Share-based Compensation 2 2 June30, 2009 162.8 $ 2 $ 2,230 $ 200 $ (860 ) $ (30 ) $ 1,542
Fair Value Measurements	Note 10. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis. The companys fair value measurements of its financial instruments, measured on a recurring basis, are categorized as Level 1 measurements under the SFAS 157 hierarchy. A Level 1 valuation is based on quoted prices in active markets at the measurement date for identical unrestricted assets or liabilities. Summarized below are the Level 1 assets reported in the companys financial statements at fair value, measured on a recurring basis (in millions): Balanceat June30,2009 FairValueMeasurements at Reporting Date Using Quoted Prices in Active MarketsofIdenticalAssets (Level 1 Measurements) Cash Equivalents (A) $ 342 $ 342 Available-for-Sale Securities (B) 21 21 Trading Securities (B) 5 5 Total $ 368 $ 368 Balance at December31,2008 FairValueMeasurements at Reporting Date Using Quoted Prices in Active MarketsofIdenticalAssets (Level 1 Measurements) Cash Equivalents (A) $ 346 $ 346 Available-for-Sale Securities (B) 20 20 Trading Securities (B) 5 5 Total $ 371 $ 371 (A) Consists of several money market funds and is included in the $347 million and $369 million of Cash and Cash Equivalents in the Consolidated Balance Sheets at June30, 2009 and December31, 2008, respectively. (B) Consists of several mutual funds which are invested in domestic (U.S.) and international equity and debt securities and is included in Investment in Grantor Trusts in the Consolidated Balance Sheets at June30, 2009 and December31, 2008. Available-for-Sale Securities. Certain investments in the grantor trusts relate to the companys non-qualified pension plans and are classified as available-for-sale securities. The company has invested in various money market funds and debt and equity mutual funds and plans to use these investments to fund its non-qualified pension obligations. The fair value of these investments was $21 million and $20 million at June30, 2009 and December31, 2008, respectively. Unrealized holding gains and losses are included as a component of accumulated other comprehensive income, unless an other than temporary impairment has occurred, which is then charged to expense. Unrealized holding gains were $1 million at June30, 2009 and unrealized holding losses were less than $1 million at December31, 2008. The company records changes in unrealized holding gains and losses in Other Comprehensive Income. The change in unrealized holding gains and losses was approximately $1 million for the six months ended June30, 2009. Realized gains were less than $1 million for the six months ended June30, 2009. Trading Securities. Certain investments in the grantor trusts relate to the companys deferred compensation plans and are classified as trading securities. Deferred compensation amounts are invested in various money market funds and debt and equity mutual funds. The company plans to use these investments to fund deferred compensation obligations. The fair value of
Employee Pension Plans	Note 11. Employee Pension Plans The components of pension cost were as follows for the quarterly and six-month periods ended June30 (inmillions): QuarterEndedJune30, 2009 2008 Service Cost $ 2 $ 2 Interest Cost 2 2 Expected Return on Plan Assets (3 ) (2 ) Recognized Actuarial Loss 1 Total Pension Cost $ 2 $ 2 SixMonthsEndedJune30, 2009 2008 Service Cost $ 4 $ 4 Interest Cost 4 3 Expected Return on Plan Assets (4 ) (3 ) Recognized Actuarial Loss 1 Total Pension Cost $ 5 $ 4
Commitments and Contingencies	Note 12. Commitments and Contingencies Contingencies. The company is subject to regulations regarding forest and harvest practices and is, from time to time, involved in various legal proceedings, including environmental and regulatory matters, incidental to its business. Reserves have been established for any probable losses. Environmental Contingencies. In connection with the October6, 2001 merger with The Timber Company, Plum Creek agreed to indemnify Georgia-Pacific for substantially all of the liabilities attributed to The Timber Company. During 2003, Georgia-Pacific provided Plum Creek with information about the existence of mine tailings and acidic surface water on approximately 90 acres in Hot Spring County, Arkansas, on former Georgia-Pacific properties. Barite mining and related activities were conducted on the site between 1939 and 1981 in part by lessees of an entity that was acquired by Georgia-Pacific. A remediation plan has not yet been approved. The company believes that it has strong defenses in the matter. Furthermore, to the extent Plum Creek is required to indemnify Georgia-Pacific for its share of the remediation costs, Plum Creek may be able to recover all or a portion of its cost from Georgia-Pacifics insurance policy, or indemnity obligations of the various lessees that conducted mining operations on the property, or both. The company believes it will be successful in defending the claim. If the company is not successful in defending this claim, we believe that any loss would not be material to our financial position or results of operations. Unrecorded Contingencies. Management currently believes that resolving other pending legal proceedings against the company, individually or in aggregate, will not have a material adverse impact on our financial position or results of operations. However, these matters are subject to inherent uncertainties and managements view on these matters may change in the future. Were an unfavorable final outcome in one or multiple legal proceedings to occur, there exists the possibility of a material adverse impact on our financial position and the results of operations for the period in which any unfavorable outcome becomes reasonably estimable.
Segment Information	Note 13. Segment Information The tables below present information about reported segments for the quarterly and six-month periods ended June30 (in millions): Northern Resources Southern Resources Real Estate Manufactured Products (A) Other Total(B) Quarter Ended June30, 2009 External Revenues $ 34 $ 89 $ 78 $ 66 $ 5 $ 272 Intersegment Revenues 1 1 Depreciation, Depletion and Amortization 6 13 1 3 23 Basis of Real Estate Sold 29 29 Operating Income (Loss) (7 ) 23 44 4 64 Quarter Ended June30, 2008 External Revenues $ 64 $ 128 $ 57 $ 121 $ 6 $ 376 Intersegment Revenues 10 10 Depreciation, Depletion and Amortization 7 16 1 17 41 Basis of Real Estate Sold 12 12 Operating Income (Loss) 7 37 35 (11 ) 5 73 Northern Resources Southern Resources Real Estate(C) Manufactured Products (A) Other Total(B) Six Months Ended June30, 2009 External Revenues $ 90 $ 172 $ 346 $ 124 $ 10 $ 742 Intersegment Revenues 2 2 Depreciation, Depletion and Amortization 13 24 1 17 55 Basis of Real Estate Sold 118 118 Operating Income (Loss) (5 ) 43 214 (22 ) 9 239 Six Months Ended June30, 2008 External Revenues $ 143 $ 250 $ 109 $ 226 $ 11 $ 739 Intersegment Revenues 25 25 Depreciation, Depletion and Amortization 17 31 1 24 73 Basis of Real Estate Sold 22 22 Operating Income (Loss) 21 74 68 (20 ) 10 153 (A) For the six months ended June30, 2009, and for the quarter and six months ended June30, 2008, the Manufactured Products Segment depreciation, depletion and amortization, and operating income (loss) include a $10 million lumber manufacturing assets impairment loss. See Note 6 of the Notes to Consolidated Financial Statements. (B) Consolidated depreciation, depletion and amortization include unallocated corporate depreciation of $1 million and $2 million for the quarter and six months ended June30, 2009, respectively, and $2 million and $3 million for the quarter and six months ended June30, 2008, respectively. (C) During 2008, the company negotiated the sale of 310,000 acres in Montana for $489 million, to be closed in three phases. Proceeds of $150 million from the first phase
Subsequent Events	Note 14. Subsequent Events Quarterly Dividend. On August4, 2009, the Board of Directors authorized the company to make a dividend payment of $0.42 per share, or approximately $68 million, which will be paid on August31, 2009 to stockholders of record on August14, 2009.
PLUM CREEK TIMBERLANDS L P
Notes to Financial Statements [Abstract]
Basis of Presentation	Note 1. Basis of Presentation General. Plum Creek Timberlands, L.P. is a Delaware Limited Partnership and a wholly-owned subsidiary of Plum Creek Timber Company, Inc. Plum Creek Timber Company, Inc. (Parent) is a Delaware Corporation and real estate investment trust, or REIT. References herein to the Operating Partnership, we, us, or our relate to Plum Creek Timberlands, L.P. and all of its wholly-owned consolidated subsidiaries; references to Plum Creek relate to Plum Creek Timber Company, Inc. and all of its wholly-owned consolidated subsidiaries. At June30, 2009, the Operating Partnership owned and managed approximately 7.2million acres of timberlands in the Northwest, Southern, and Northeast United States, and owned and operated eight wood product conversion facilities in the Northwest United States. Included in the 7.2million acres are about 1.5million acres of higher and better use timberlands, which are expected to be sold and/or developed over approximately the next 15 years for recreational, conservation or residential purposes. In addition, the Operating Partnership has approximately 250,000 acres of non-strategic timberlands, which are expected to be sold over the next five years. In the meantime, all of these timberlands continue to be used productively in our business of growing and selling timber. The consolidated financial statements of the Operating Partnership include the accounts of Plum Creek Timberlands, L.P. and its subsidiaries. The Operating Partnership is 100% owned by the Parent. The Parent has no assets or liabilities other than its ownership interests in Plum Creek Timberlands, L.P. and Plum Creek Ventures I, LLC (PC Ventures), a 100% owned subsidiary. Plum Creek Timber Company, Inc. has no operations other than its investment in these subsidiaries and transactions in its own equity, such as the issuance and/or repurchase of common stock and the receipt of proceeds from stock option exercises. Intercompany transactions and accounts between Plum Creek Timberlands, L.P. and its subsidiaries have been eliminated in consolidation. All transactions are denominated in United States dollars. Plum Creek Timber Company, Inc. has elected to be taxed as a REIT under sections 856-860 of the United States Internal Revenue Code and, as such, generally does not pay corporate-level income tax. However, the Operating Partnership conducts certain non-REIT activities through various taxable REIT subsidiaries, which are subject to corporate-level income tax. These activities include our manufacturing operations, the harvesting and selling of logs, and the development and/or sale of some of our higher and better use timberlands. The Operating Partnerships tax provision includes the tax expense and/or benefit associated with Plum Creeks taxable REIT subsidiaries, as well as any tax expense and/or benefit attributable to the REIT. The effective tax rate for the Operating Partnership is lower than the federal statutory corporate rate due to Plum Creeks status as a REIT. The consolidated financial statements included in this Form 10-Q are unaudited and do not contain all of the information required by U.S. generally accepted ac
Variable Interest Entities	Note 2. Variable Interest Entities On October1, 2008, a subsidiary of the Operating Partnership contributed 454,000 acres of timberlands located in its Southern Resources Segment to Southern Diversified Timber, LLC (the Timberland Venture) in exchange for a $705 million preferred interest and a 9% common interest valued at $78 million. Following the contribution, Plum Creek Ventures I, LLC (PC Ventures), a 100% wholly-owned subsidiary of Plum Creek Timber Company, Inc., borrowed $783 million from the Timberland Venture. PC Ventures used the proceeds from the borrowing to make a $783 million capital contribution to the Operating Partnership. The Timberland Venture is a variable interest entity in accordance with FASB Interpretation No.46(R), Consolidation of Variable Interest Entities (FIN 46(R)). Besides quarterly interest payments on the loan by PC Ventures, the Operating Partnership has not provided financing or other support to the venture. The venture is financed by a line of credit obtained by the Timberland Venture. We are not the primary beneficiary of the Timberland Venture. The Operating Partnership does not manage the day-to-day operations of the venture, has only limited protective rights and its involvement is generally limited to receiving distributions on its preferred and common interests. We are not the primary beneficiary because we are not required to absorb the majority of the expected losses as defined by FIN 46(R). The common interests are required to absorb losses based on positive capital accounts before any losses can be allocated to our preferred interest, and we own a 9% common interest. The carrying amount of the investment in the venture is $203 million at June30, 2009 and $199 million at December31, 2008, and it is reported in the Consolidated Balance Sheets as Equity Investment in Timberland Venture. The increase in the investment is a result of recognizing equity earnings of $29 million, offset by a preferred cash distribution of $25 million paid by the Timberland Venture to the Operating Partnership during the first quarter of 2009. Our maximum exposure to loss is $203 million, the carrying amount of the investment in the venture. Generally, losses are first allocated among the common interests based on positive capital accounts in which we hold a 9% common interest. No losses are allocated to our preferred interest ($705 million) until the common interests have absorbed losses of approximately $861 million.
Inventory	Note 3. Inventory Inventories, accounted for using the lower of average cost or market, consisted of the following (inmillions): June30,2009 December31,2008 Raw Materials (primarily logs) $ 8 $ 23 Work-In-Process 2 3 Finished Goods 31 36 41 62 Supplies 12 12 Total $ 53 $ 74
Timber and Timberlands	Note 4. Timber and Timberlands Timber and Timberlands consisted of the following (in millions): June30,2009 December31,2008 Timber and Logging Roads, net $ 2,385 $ 2,443 Timberlands 1,180 1,195 Timber and Timberlands, net $ 3,565 $ 3,638
Property, Plant and Equipment	Note 5. Property, Plant and Equipment Property, Plant and Equipment consisted of the following (in millions): June30,2009 December31,2008 Land, Buildings and Improvements $ 86 $ 92 Machinery and Equipment 306 310 392 402 Accumulated Depreciation (232 ) (225 ) Property, Plant and Equipment, net $ 160 $ 177 During the first quarter of 2009, the Operating Partnership conducted an analysis to rationalize and consolidate its lumber operations. The analysis was performed by the Operating Partnership due to the significant and sustained decline in lumber demand along with the Operating Partnerships expectations for continued weakness in this business. As a result of this analysis, the Operating Partnership concluded that certain of its lumber manufacturing assets were impaired. Consequently, during the first quarter of 2009, the Operating Partnership recorded an impairment charge of $10 million related to these lumber manufacturing assets. During the second quarter of 2008, the Operating Partnership recorded an impairment charge of $10 million related to its lumber manufacturing assets. The impairment losses are reflected in the operating income of the Manufactured Products Segment and included in Cost of Goods Sold for Manufacturing in the Consolidated Statements of Income. The fair value of the impaired assets was determined by the Operating Partnership using expected future cash flows discounted at a risk-adjusted rate of interest. See Note 9 of the Notes to Consolidated Financial Statements.
Income Taxes	Note 6. Income Taxes Plum Creek Timberlands, L.P.s taxable income is allocated 100% to its parent, Plum Creek Timber Company, Inc., which has elected to be taxed as a REIT under sections 856-860 of the United States Internal Revenue Code. A REIT generally does not pay corporate-level income tax if it distributes 100% of its taxable income to shareholders and satisfies other organizational and operational requirements as set forth in the Internal Revenue Code. However, the Operating Partnership conducts certain non-REIT activities through various wholly-owned taxable REIT subsidiaries, which are subject to corporate-level income tax. These activities include our manufacturing operations, the harvesting and sale of logs, and the development and/or sale of some higher and better use timberlands. The Operating Partnerships tax provision includes the tax expense and/or benefit associated with Plum Creeks wholly-owned taxable REIT subsidiaries, as well as any tax expense and/or benefit attributable to the REIT. The effective tax rate for the Operating Partnership is lower than the federal corporate statutory rate primarily due to Plum Creeks status as a REIT. If a company fails to qualify as a REIT in any taxable year, it will be subject to federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and may not be able to qualify as a REIT for four subsequent taxable years. As a consequence of the October6, 2001 merger with The Timber Company, which involved merging a taxable entity into a nontaxable entity, Plum Creek will generally be subject to corporate-level tax (built-in gains tax) if Plum Creek makes a taxable disposition of certain property acquired in the merger within the ten-year period following the merger date. The built-in gains tax applies to gains from such asset sales to the extent that the fair value of the property exceeds its tax basis at the merger date. Built-in gains tax is generally not payable on dispositions of property to the extent the proceeds from such dispositions are reinvested in qualifying like-kind replacement property. The built-in gains tax does not apply to income generated from the harvesting and sale of timber. In connection with Plum Creeks merger with The Timber Company, Plum Creek wrote-off all of The Timber Companys deferred income tax liability related to timber and timberlands except for $11 million. The $11 million deferred income tax liability related to the book-tax basis difference of timber and timberlands that were expected to be sold, and subject to, the built-in gains tax during the ten-year period ending October6, 2011. During the period October6, 2001 to December31, 2008, the $11 million deferred income tax liability was reduced by $5 million due to a remeasurement of the amount of deferred income taxes needed and by $2 million due to the payment or accrual of tax in connection with sales of timberlands subject to the built-in gains tax. At December31, 2008, it was estimated that Plum Creek needed a deferred tax liability of approximately $4 million based on projected timberland sales subject to the built-in gains tax for the period January1, 2
Borrowings	Note 7. Borrowings Debt consisted of the following (in millions): June30,2009 December31,2008 Variable Rate Debt Term Credit Agreement (A) $ 350 $ 350 Term Credit Agreement (B) 250 250 Revolving Line of Credit (C) 206 231 Fixed Rate Debt Senior Notes 1,213 1,351 Total Debt 2,019 2,182 Less:Current Portion (110 ) (158 ) Long-Term Portion $ 1,909 $ 2,024 (A) As of June30, 2009, the interest rate on the $350 million term credit agreement was 0.76%. (B) As of June30, 2009, the interest rate on the $250 million term credit agreement was 1.31%. (C) As of June30, 2009, the weighted-average interest rate for the borrowings on the line of credit was 0.72%. As of June30, 2009, we had $206 million of borrowings and $14million of standby letters of credit outstanding; $530 million remained available for borrowing under our $750 million line of credit. As of July1, 2009, all of the borrowings outstanding under our line of credit were repaid. During March 2009, the Operating Partnership paid approximately $4 million to retire $5 million of principal for Senior Notes due in 2015. As a result, the Operating Partnership recognized a gain of $1 million which was net of associated unamortized discount and debt issuance costs. The $1 million gain is classified as Gain on Extinguishment of Debt in the Consolidated Statements of Income for the six-months ended June30, 2009.
Partners' Capital	Note 8. Partners Capital The changes in the Operating Partnerships capital accounts were as follows during 2009 (in millions): Preferred Partnership Interest Partners Capital Accumulated OtherComprehensive Income (Loss) Total Partnership Capital January1, 2009 $ 790 $ 1,603 $ (31 ) $ 2,362 Net Income before Allocation to Series T-1 Preferred Interest and Partners 171 171 Other Comprehensive Income (Loss), net of tax (2 ) (2 ) Total Comprehensive Income 169 Net Income Allocation to Series T-1 Preferred Interest 14 (14 ) Distributions to Partners (Common Limited Partnership Interests) (156 ) (156 ) Distributions for Series T-1 Preferred Interest (18 ) (18 ) Capital Contributions from Parent 3 3 March31, 2009 786 1,607 (33 ) 2,360 Net Income before Allocation to Series T-1 Preferred Interest and Partners 47 47 Other Comprehensive Income (Loss), net of tax 3 3 Total Comprehensive Income 50 Net Income Allocation to Series T-1 Preferred Interest 15 (15 ) Distributions to Partners (Common Limited Partnership Interests) (69 ) (69 ) Distributions for Series T-1 Preferred Interest (11 ) (11 ) Capital Contributions from Parent 2 2 June30, 2009 $ 790 $ 1,572 $ (30 ) $ 2,332
Fair Value Measurements	Note 9. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis. The Operating Partnerships fair value measurements of its financial instruments, measured on a recurring basis, are categorized as Level 1 measurements under the SFAS 157 hierarchy. A Level 1 valuation is based on quoted prices in active markets at the measurement date for identical unrestricted assets or liabilities. Summarized below are the Level 1 assets reported in the Operating Partnerships financial statements at fair value, measured on a recurring basis (in millions): Balance at June30,2009 FairValueMeasurements at Reporting Date Using Quoted Prices in Active MarketsofIdenticalAssets (Level 1 Measurements) Cash Equivalents (A) $ 342 $ 342 Available-for-Sale Securities (B) 21 21 Trading Securities (B) 5 5 Total $ 368 $ 368 Balance at December31,2008 Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets of Identical Assets (Level 1 Measurements) Cash Equivalents (A) $ 346 $ 346 Available-for-Sale Securities (B) 20 20 Trading Securities (B) 5 5 Total $ 371 $ 371 (A) Consists of several money market funds and is included in the $347 million and $369 million of Cash and Cash Equivalents in the Consolidated Balance Sheets at June30, 2009 and December31, 2008, respectively. (B) Consists of several mutual funds which are invested in domestic (U.S.) and international equity and debt securities and is included in Investment in Grantor Trusts in the Consolidated Balance Sheets at June30, 2009 and December31, 2008. Available-for-Sale Securities. Certain investments in the grantor trusts relate to the Operating Partnerships non-qualified pension plans and are classified as available-for-sale securities. The Operating Partnership has invested in various money market funds and debt and equity mutual funds and plans to use these investments to fund its non-qualified pension obligations. The fair value of these investments was $21 million and $20 million at June30, 2009 and December31, 2008, respectively. Unrealized holding gains and losses are included as a component of accumulated other comprehensive income, unless an other than temporary impairment has occurred, which is then charged to expense. Unrealized holding gains were $1 million at June30, 2009 and unrealized holding losses were less than $1 million at December31, 2008. The Operating Partnership records changes in unrealized holding gains and losses in Other Comprehensive Income. The change in unrealized holding gains and losses was approximately $1 million for the six months ended June30, 2009. Realized gains were less than $1 million for the six months ended June30, 2009. Trading Securities. Certain investments in the grantor trusts relate to the Operating Partnerships deferred compensation plans and are classified as trading securities. Deferred compensation amounts are invested in various money market funds and debt and equity mutual funds. The Operating Partners
Employee Pension Plans	Note 10. Employee Pension Plans The components of pension cost were as follows for the quarterly and six-month periods ended June30 (inmillions): QuarterEndedJune30, 2009 2008 Service Cost $ 2 $ 2 Interest Cost 2 2 Expected Return on Plan Assets (3 ) (2 ) Recognized Actuarial Loss 1 Total Pension Cost $ 2 $ 2 SixMonthsEndedJune30, 2009 2008 Service Cost $ 4 $ 4 Interest Cost 4 3 Expected Return on Plan Assets (4 ) (3 ) Recognized Actuarial Loss 1 Total Pension Cost $ 5 $ 4
Commitments and Contingencies	Note 11. Commitments and Contingencies Contingencies. The Operating Partnership is subject to regulations regarding forest and harvest practices and is, from time to time, involved in various legal proceedings, including environmental and regulatory matters, incidental to its business. Reserves have been established for any probable losses. Environmental Contingencies. In connection with the October6, 2001 merger with The Timber Company, Plum Creek agreed to indemnify Georgia-Pacific for substantially all of the liabilities attributed to The Timber Company. During 2003, Georgia-Pacific provided Plum Creek with information about the existence of mine tailings and acidic surface water on approximately 90 acres in Hot Spring County, Arkansas, on former Georgia-Pacific properties. Barite mining and related activities were conducted on the site between 1939 and 1981 in part by lessees of an entity that was acquired by Georgia-Pacific. A remediation plan has not yet been approved. The Operating Partnership believes that it has strong defenses in the matter. Furthermore, to the extent the Operating Partnership is required to indemnify Georgia-Pacific for its share of the remediation costs, the Operating Partnership may be able to recover all or a portion of its cost from Georgia-Pacifics insurance policy, or indemnity obligations of the various lessees that conducted mining operations on the property, or both. The Operating Partnership believes it will be successful in defending the claim. If the Operating Partnership is not successful in defending this claim, we believe that any loss would not be material to our financial position or results of operations. Unrecorded Contingencies. Management currently believes that resolving other pending legal proceedings against the Operating Partnership, individually or in aggregate, will not have a material adverse impact on our financial position or results of operations. However, these matters are subject to inherent uncertainties and managements view on these matters may change in the future. Were an unfavorable final outcome in one or multiple legal proceedings to occur, there exists the possibility of a material adverse impact on our financial position and the results of operations for the period in which any unfavorable outcome becomes reasonably estimable.
Segment Information	Note 12. Segment Information The tables below present information about reported segments for the quarterly and six-month periods ended June30 (inmillions): Northern Resources Southern Resources Real Estate Manufactured Products(A) Other Total(B) Quarter Ended June30, 2009 External Revenues $ 34 $ 89 $ 78 $ 66 $ 5 $ 272 Intersegment Revenues 1 1 Depreciation, Depletion and Amortization 6 13 1 3 23 Basis of Real Estate Sold 29 29 Operating Income (Loss) (7 ) 23 44 4 64 Quarter Ended June30, 2008 External Revenues $ 64 $ 128 $ 57 $ 121 $ 6 $ 376 Intersegment Revenues 10 10 Depreciation, Depletion and Amortization 7 16 1 17 41 Basis of Real Estate Sold 12 12 Operating Income (Loss) 7 37 35 (11 ) 5 73 Northern Resources Southern Resources Real Estate(C) Manufactured Products(A) Other Total(B) Six Months Ended June30, 2009 External Revenues $ 90 $ 172 $ 346 $ 124 $ 10 $ 742 Intersegment Revenues 2 2 Depreciation, Depletion and Amortization 13 24 1 17 55 Basis of Real Estate Sold 118 118 Operating Income (Loss) (5 ) 43 214 (22 ) 9 239 Six Months Ended June30, 2008 External Revenues $ 143 $ 250 $ 109 $ 226 $ 11 $ 739 Intersegment Revenues 25 25 Depreciation, Depletion and Amortization 17 31 1 24 73 Basis of Real Estate Sold 22 22 Operating Income (Loss) 21 74 68 (20 ) 10 153 (A) For the six months ended June30, 2009, and for the quarter and six months ended June30, 2008, the Manufactured Products Segment depreciation, depletion and amortization, and operating income (loss) include a $10 million lumber manufacturing assets impairment loss. See Note 5 of the Notes to Consolidated Financial Statements. (B) Consolidated depreciation, depletion and amortization include unallocated corporate depreciation of $1 million and $2 million for the quarter and six months ended June30, 2009, respectively, and $2 million and $3 million for the quarter and six months ended June30, 2008, respectively. (C) During 2008, the Operating Partnership negotiated the sale of 310,000 acres in Montana for $489 million, to be closed in three phases. Proceeds of $150 million from the
Supplemental Disclosures [Text Block]	Included in this item are the consolidated financial statements relate to Plum Creek Timberlands, L.P., a Delaware Limited Partnership and a wholly-owned subsidiary of Plum Creek Timber Company, Inc. These financial statements are provided pursuant to Rule 3-10 of Regulation S-X in connection with the shelf registration statement on Form S-3 filed in April of 2009 pursuant to which Plum Creek Timberlands, L.P. has registered and from time to time may offer and sell debt securities. As of June30, 2009, Plum Creek Timberlands, L.P. has publicly issued and outstanding $458 million aggregate principal amount of its 5.875% Senior Notes (debt securities) pursuant to the shelf registration statement.

Document Information

Document Information
	6 Months Ended Jun. 30, 2009
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Amendment Description	N.A.
Document Period End Date	2009-06-30

Entity Information

Entity Information (USD $)
	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2009 PLUM CREEK TIMBER CO INC	Jul. 31, 2009 PLUM CREEK TIMBER CO INC	Jun. 30, 2008 PLUM CREEK TIMBER CO INC	6 Months Ended Jun. 30, 2009 PLUM CREEK TIMBERLANDS L P	Jun. 30, 2008 PLUM CREEK TIMBERLANDS L P
Entity [Text Block]
Trading Symbol		PCL
Entity Registrant Name		PLUM CREEK TIMBER CO INC			Plum Creek Timberlands L P
Entity Central Index Key	0000849213
Current Fiscal Year End Date		--12-31			--12-31
Entity Well-known Seasoned Issuer		Yes			No
Entity Current Reporting Status		Yes			Yes
Entity Voluntary Filers		No			No
Entity Filer Category		Large Accelerated Filer			Non-accelerated Filer
Entity Common Stock, Shares Outstanding			162,812,610		0
Entity Public Float				$7,274,009,668		$0