Plum Creek Timber (PCL) 10-Q 5 May 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010	Apr. 30, 2010
Document Type	10-Q
Amendment Flag	false
Trading Symbol	PCL
Entity Registrant Name	PLUM CREEK TIMBER CO INC
Entity Central Index Key	0000849213
Current Fiscal Year End Date	--12-31
Document Period End Date	2010-03-31
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		162,966,242
PLUM CREEK TIMBERLANDS L P [Member]
Entity Registrant Name	Plum Creek Timberlands L P
Entity Central Index Key	0001296350
Current Fiscal Year End Date	--12-31
Document Period End Date	2010-03-31
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Entity Filer Category	Non-accelerated Filer

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]	3 Months Ended Mar. 31, 2009 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
REVENUES:
Timber	$151	$139
Real Estate	99	268
Manufacturing	60	58
Other	7	5
Total Revenues	317	470
Cost of Goods Sold:
Timber	109	108
Real Estate	35	95
Manufacturing	54	76
Other
Total Cost of Goods Sold	198	279
Selling, General and Administrative	29	32
Total Costs and Expenses	227	311
Other Operating Income (Expense), net	5
Operating Income	95	159
Equity Earnings from Timberland Venture	14	15
Interest Expense, net:
Interest Expense (Debt Obligations to Unrelated Parties)	20	24
Interest Expense (Note Payable to Timberland Venture)	14	14
Total Interest Expense, net	34	38
Gain on Extinguishment of Debt		1
Income before Income Taxes	75	137
Benefit for Income Taxes	(1)	(20)
Income from Continuing Operations	76	157
Gain on Sales of Properties, net of tax	11
Net Income	87	157
PER SHARE AMOUNTS:
Income from Continuing Operations-Basic	0.47	0.95
Income from Continuing Operations-Diluted	0.47	0.95
Net Income Per Share - Basic	0.54	0.95
Net Income Per Share - Diluted	0.54	0.95
Dividends Declared-per Common Share Outstanding	0.42	0.42
Weighted-Average Number of Shares Outstanding
-Basic	162.9	164.7
-Diluted	163.1	164.8
PLUM CREEK TIMBERLANDS L P [Member]
REVENUES:
Timber	151	139
Real Estate	99	268
Manufacturing	60	58
Other	7	5
Total Revenues	317	470
Cost of Goods Sold:
Timber	109	108
Real Estate	35	95
Manufacturing	54	76
Other
Total Cost of Goods Sold	198	279
Selling, General and Administrative	29	32
Total Costs and Expenses	227	311
Other Operating Income (Expense), net	5
Operating Income	95	159
Equity Earnings from Timberland Venture	14	15
Interest Expense, net:
Total Interest Expense, net	20	24
Gain on Extinguishment of Debt		1
Income before Income Taxes	89	151
Benefit for Income Taxes	(1)	(20)
Income from Continuing Operations	90	171
Gain on Sales of Properties, net of tax	11
Net Income before Allocation to Series T-1 Preferred Interest and Partners	101	171
Net Income Allocable to Series T-1 Preferred Interest	(14)	(14)
Net Income	$87	$157

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS ( PLUM CREEK TIMBER CO INC [Member], USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
PLUM CREEK TIMBER CO INC [Member]
Current Assets:
Cash and Cash Equivalents	$304	$299
Accounts Receivable	32	24
Taxes Receivable	15	15
Inventories	49	46
Deferred Tax Asset	7	6
Assets Held for Sale	87	115
Other Current Assets	22	14
Total Current Assets	516	519
Timber and Timberlands, net	3,477	3,487
Property, Plant and Equipment, net	153	156
Equity Investment in Timberland Venture	187	201
Deferred Tax Asset	12	14
Investment in Grantor Trusts (at Fair Value)	33	33
Other Assets	36	38
Total Assets	4,414	4,448
Current Liabilities:
Current Portion of Long-Term Debt	51	55
Accounts Payable	35	32
Interest Payable	34	25
Wages Payable	9	20
Taxes Payable	13	14
Deferred Revenue	15	16
Other Current Liabilities	12	21
Total Current Liabilities	169	183
Long-Term Debt	1,577	1,625
Line of Credit	320	320
Note Payable to Timberland Venture	783	783
Other Liabilities	79	71
Total Liabilities	2,928	2,982
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)-162.9 at March 31, 2010 and 162.8 at December 31, 2009	2	2
Additional Paid-In Capital	2,236	2,233
Retained Earnings	129	110
Treasury Stock, at Cost, Common Shares-24.8 at March 31, 2010 and 24.8 at December 31, 2009	(861)	(860)
Accumulated Other Comprehensive Income (Loss)	(20)	(19)
Total Stockholders' Equity	1,486	1,466
Total Liabilities and Stockholders' Equity	4,414	4,448
PLUM CREEK TIMBERLANDS L P [Member]
Current Assets:
Cash and Cash Equivalents	304	299
Accounts Receivable	32	24
Taxes Receivable	15	15
Inventories	49	46
Deferred Tax Asset	7	6
Assets Held for Sale	87	115
Other Current Assets	22	14
Total Current Assets	516	519
Timber and Timberlands, net	3,477	3,487
Property, Plant and Equipment, net	153	156
Equity Investment in Timberland Venture	187	201
Deferred Tax Asset	12	14
Investment in Grantor Trusts (at Fair Value)	34	34
Other Assets	36	38
Total Assets	4,415	4,449
Current Liabilities:
Current Portion of Long-Term Debt	51	55
Accounts Payable	35	32
Interest Payable	27	18
Wages Payable	9	20
Taxes Payable	13	14
Deferred Revenue	15	16
Other Current Liabilities	12	21
Total Current Liabilities	162	176
Long-Term Debt	1,577	1,625
Line of Credit	320	320
Other Liabilities	80	72
Total Liabilities	2,139	2,193
Commitments and Contingencies
Partnership Capital
Series T-1 Preferred Interest	790	790
Partners' Capital (Common Partnership Interests)	1,486	1,466
Total Partnership Capital	2,276	2,256
Total Liabilities and Partnership Capital	$4,415	$4,449

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Millions, except Per Share data	Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]	Dec. 31, 2009 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Preferred stock, par value	0.01	0.01
Preferred stock, authorized	75	75
Preferred stock, outstanding	0	0
Common stock, par value	0.01	0.01
Common stock, authorized	300.6	300.6
Common stock, outstanding (net of Treasury Stock)	162.9	162.8
Treasury Stock, Common shares	24.8	24.8
PLUM CREEK TIMBERLANDS L P [Member]
Investment in Grantor Trusts, amounts at Fair Value	$33	$33

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]	3 Months Ended Mar. 31, 2009 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Cash Flows From Operating Activities
Net Income	$87	$157
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (Includes $10 Lumber Impairment Loss in 2009)	24	33
Basis of Real Estate Sold	32	89
Equity Earnings from Timberland Venture	(14)	(15)
Distributions from Timberland Venture	28	25
Deferred Income Taxes	1	(17)
Gain on Sales of Properties	(11)
Deferred Revenue from Long-Term Gas Leases	8	(2)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		45
Other Working Capital Changes	(32)	(31)
Other	6
Net Cash Provided By Operating Activities	129	284
Cash Flows From Investing Activities
Capital Expenditures (Excluding Timberland Acquisitions)	(13)	(17)
Proceeds from Sale of Properties	11
Net Cash Used In Investing Activities	(2)	(17)
Cash Flows From Financing Activities
Dividends	(68)	(69)
Borrowings on Line of Credit	568	225
Repayments on Line of Credit	(568)	(245)
Principal Payments and Retirement of Long-Term Debt	(53)	(105)
Acquisition of Treasury Stock	(1)	(87)
Net Cash Used In Financing Activities	(122)	(281)
Increase (Decrease) In Cash and Cash Equivalents	5	(14)
Cash and Cash Equivalents:
Beginning of Period	299	369
End of Period	304	355
PLUM CREEK TIMBERLANDS L P [Member]
Cash Flows From Operating Activities
Net Income before Allocation to Preferred Partnership Interest and Partners	101	171
Net Income	87	157
Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities:
Depreciation, Depletion and Amortization (Includes $10 Lumber Impairment Loss in 2009)	24	33
Basis of Real Estate Sold	32	89
Equity Earnings from Timberland Venture	(14)	(15)
Distributions from Timberland Venture	28	25
Deferred Income Taxes	1	(17)
Gain on Sales of Properties	(11)
Deferred Revenue from Long-Term Gas Leases	8	(2)
Working Capital Changes Impacting Cash Flow:
Like-Kind Exchange Funds		45
Other Working Capital Changes	(32)	(27)
Other	6
Net Cash Provided By Operating Activities	143	302
Cash Flows From Investing Activities
Capital Expenditures (Excluding Timberland Acquisitions)	(13)	(17)
Proceeds from Sale of Properties	11
Net Cash Used In Investing Activities	(2)	(17)
Cash Flows From Financing Activities
Cash Distributions to Common Partners	(69)	(156)
Cash Distributions for Series T-1 Preferred Interest	(14)	(18)
Borrowings on Line of Credit	568	225
Repayments on Line of Credit	(568)	(245)
Principal Payments and Retirement of Long-Term Debt	(53)	(105)
Net Cash Used In Financing Activities	(136)	(299)
Increase (Decrease) In Cash and Cash Equivalents	5	(14)
Cash and Cash Equivalents:
Beginning of Period	299	369
End of Period	$304	$355

1_CONSOLIDATED STATEMENTS OF CA

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $)
In Millions	3 Months Ended Mar. 31, 2009 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Lumber Impairment Loss	$10
PLUM CREEK TIMBERLANDS L P [Member]
Lumber Impairment Loss	$10

Basis of Presentation

Basis of Presentation
	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
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 March 31, 2010, the company owned and managed approximately 6.9 million acres of timberlands in the Northwest, Southern, and Northeast United States, and owned eight wood product conversion facilities in the Northwest United States (two of which production has been indefinitely suspended). Included in the 6.9 million acres are about 1.35 million acres of higher value timberlands, which are expected to be sold and/or developed over the next fifteen 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 our timberlands continue to be managed 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 value timberlands. Plum Creek's overall effective tax rate is lower than the federal statutory corporate rate due to Plum Creek's 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 December 31, 2009, 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 company's 2009 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.
PLUM CREEK TIMBERLANDS L P [Member]
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. ("Parent"), a Delaware Corporation and a 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" or "Parent" relate to Plum Creek Timber Company, Inc. and all of its wholly-owned consolidated subsidiaries. At March 31, 2010, the Operating Partnership owned and managed approximately 6.9 million acres of timberlands in the Northwest, Southern, and Northeast United States, and owned eight wood product conversion facilities in the Northwest United States (two of which production has been indefinitely suspended). Included in the 6.9 million acres are about 1.35 million acres of higher value timberlands, which are expected to be sold and/or developed over the next fifteen 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 our timberlands continue to be managed 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 Plum Creek. Plum Creek has no assets or liabilities other than its direct and indirect ownership interests in Plum Creek Timberlands, L.P., and its interest in Plum Creek Ventures I, LLC ("PC Ventures"), a 100% owned subsidiary of Plum Creek. The Parent 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 wholly-owned 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 value timberlands. The Operating Partnership's tax provision includes the tax expense and/or benefit associated with Plum Creek's wholly-owned taxable REIT subsidiaries, as well as any tax expense and/or benefit incurred by the REIT. The effective tax rate for the Operating Partnership is lower than the federal statutory corporate rate due to Plum Creek's status as a REIT. The consolidated financial statements included in this Form 10-Q are unaudite

Earnings Per Share

Earnings Per Share (PLUM CREEK TIMBER CO INC [Member])
	3 Months Ended Mar. 31, 2010
Earnings Per Share	Note 2. Earnings Per Share The following table sets forth the reconciliation of basic and diluted earnings per share for the quarters ended March 31 (in millions, except per share amounts): QuarterEndedMarch31, 2010 2009 Income from Continuing Operations $ 76 $ 157 Gain on Sale of Properties, net of tax 11 Net Income Available to Common Stockholders $ 87 $ 157 Denominator for Basic Earnings per Share 162.9 164.7 Effect of Dilutive Securities Stock Options 0.2 0.1 Effect of Dilutive Securities Restricted Stock, Restricted Stock Units and Value Management Plan Denominator for Diluted Earnings per Share Adjusted for Dilutive Securities 163.1 164.8 Per Share Amounts Basic: Income from Continuing Operations $ 0.47 $ 0.95 Gain on Sale of Properties, net of tax 0.07 Net Income $ 0.54 $ 0.95 Per Share Amounts Diluted: Income from Continuing Operations $ 0.47 $ 0.95 Gain on Sale of Properties, net of tax 0.07 Net Income $ 0.54 $ 0.95 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 quarters ended March 31 (shares in millions): QuarterEndedMarch31, 2010 2009 Number of Options 1.8 2.4 Range of Exercise Prices $33.75to$43.23 $30.70to$43.23 Expiration on or before February 2020 February 2019

Inventory

Inventory
	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Inventory	Note 3. Inventory Inventories, accounted for using the lower of average cost or market, consisted of the following (in millions): March31,2010 December31,2009 Raw Materials (primarily logs) $ 9 $ 9 Work-In-Process 1 1 Finished Goods 26 23 36 33 Supplies 13 13 Total $ 49 $ 46
PLUM CREEK TIMBERLANDS L P [Member]
Inventory	Note 2. Inventory Inventories, accounted for using the lower of average cost or market, consisted of the following (in millions): March31,2010 December31,2009 Raw Materials (primarily logs) $ 9 $ 9 Work-In-Process 1 1 Finished Goods 26 23 36 33 Supplies 13 13 Total $ 49 $ 46

Timber and Timberlands

Timber and Timberlands
	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Timber and Timberlands	Note 4. Timber and Timberlands Timber and Timberlands consisted of the following (in millions): March31,2010 December31,2009 Timber and Logging Roads, net $ 2,300 $ 2,307 Timberlands 1,177 1,180 Timber and Timberlands, net $ 3,477 $ 3,487
PLUM CREEK TIMBERLANDS L P [Member]
Timber and Timberlands	Note 3. Timber and Timberlands Timber and Timberlands consisted of the following (in millions): March31,2010 December31,2009 Timber and Logging Roads, net $ 2,300 $ 2,307 Timberlands 1,177 1,180 Timber and Timberlands, net $ 3,477 $ 3,487

Property, Plant and Equipment

Property, Plant and Equipment
	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Property, Plant and Equipment	Note 5. Property, Plant and Equipment Property, Plant and Equipment consisted of the following (in millions): March31,2010 December31,2009 Land, Buildings and Improvements $ 87 $ 86 Machinery and Equipment 309 308 396 394 Accumulated Depreciation (243 ) (238 ) Property, Plant and Equipment, net $ 153 $ 156 During the first quarter of 2009, as a result of an analysis to rationalize and consolidate its lumber operations, the company recorded an impairment charge of $10 million related to certain lumber manufacturing assets. The impairment loss is 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 9 of the Notes to Consolidated Financial Statements.
PLUM CREEK TIMBERLANDS L P [Member]
Property, Plant and Equipment	Note 4. Property, Plant and Equipment Property, Plant and Equipment consisted of the following (in millions): March31,2010 December31,2009 Land, Buildings and Improvements $ 87 $ 86 Machinery and Equipment 309 308 396 394 Accumulated Depreciation (243 ) (238 ) Property, Plant and Equipment, net $ 153 $ 156 During the first quarter of 2009, as a result of an analysis to rationalize and consolidate its lumber operations, the Operating Partnership recorded an impairment charge of $10 million related to certain lumber manufacturing assets. The impairment loss is 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 8 of the Notes to Consolidated Financial Statements.

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Income Taxes	Note 6. 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 October 6, 2001 merger with The Timber Company, which involved merging a taxable entity into a nontaxable entity, Plum Creek has generally been subject to corporate-level tax (built-in gains tax) when the company makes a taxable disposition of certain property acquired in the merger. The built-in gains tax applies to gains recognized within the ten-year period following the merger date 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 sale of timber. Following the merger with The Timber Company, Plum Creek wrote-off all of The Timber Company's 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 October 6, 2011. Prior to January 1, 2009, 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. In connection with the enactment of the American Recovery and Reinvestment Act of 2009, deferred taxes associated with timber and timberlands were reduced by an additional $3 million, resulting in the recognition of a $3 million deferred income tax benefit in the first quarter of 2009. Furthermore, in the first quarter of 2009, as a result of the enactment of the American Recovery and Reinvestment Act of 2009, the company reversed $5 million of current tax expense related to the built-in gains that had been accrued in 2008.
PLUM CREEK TIMBERLANDS L P [Member]
Income Taxes	Note 5. Income Taxes Plum Creek Timberlands, L.P. is a wholly-owned limited partnership and therefore, not subject to income tax. 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 value timberlands. The Operating Partnership's tax provision includes the tax expense and/or benefit associated with Plum Creek's wholly-owned taxable REIT subsidiaries, as well as any tax expense and/or benefit incurred by the REIT. The effective tax rate for the Operating Partnership is lower than the federal corporate statutory rate primarily due to Plum Creek's 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 October 6, 2001 merger with The Timber Company, which involved merging a taxable entity into a nontaxable entity, Plum Creek has generally been subject to corporate-level tax (built-in gains tax) when the Operating Partnership makes a taxable disposition of certain property acquired in the merger. The built-in gains tax applies to gains recognized within the ten-year period following the merger date 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 sale of timber. Following the merger with The Timber Company, Plum Creek wrote-off all of The Timber Company's 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 October 6, 2011. Prior to January 1, 2009, 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. In connection with the enactment of the American Recovery and Reinvestment Act of 2009, deferred taxes associated with timber and timber

Borrowings

Borrowings
	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Borrowings	Note 7. Borrowings Debt consisted of the following (in millions): March31,2010 December31,2009 Variable Rate Debt Term Credit Agreement (A) $ 350 $ 350 Term Credit Agreement (B) 250 250 Revolving Line of Credit (C) 320 320 Fixed Rate Debt Senior Notes 1,028 1,080 Note Payable to Timberland Venture 783 783 Total Debt 2,731 2,783 Less: Current Portion (51 ) (55 ) Long-Term Portion $ 2,680 $ 2,728 (A) As of March31, 2010, the interest rate on the $350 million term credit agreement was 0.70%. (B) As of March31, 2010, the interest rate on the $250 million term credit agreement was 1.25%. (C) As of March31, 2010, the weighted-average interest rate for the borrowings on the line of credit was 0.66%. As of March31, 2010, we had $320 million of borrowings and $11million of standby letters of credit outstanding; $419 million remained available for borrowing under our $750 million line of credit. As of April1, 2010, $294 million of the borrowings under our line of credit was repaid.
PLUM CREEK TIMBERLANDS L P [Member]
Borrowings	Note 6. Borrowings Debt consisted of the following (in millions): March31,2010 December31,2009 Variable Rate Debt Term Credit Agreement (A) $ 350 $ 350 Term Credit Agreement (B) 250 250 Revolving Line of Credit (C) 320 320 Fixed Rate Debt Senior Notes 1,028 1,080 Total Debt 1,948 2,000 Less:Current Portion (51 ) (55 ) Long-Term Portion $ 1,897 $ 1,945 (A) As of March31, 2010, the interest rate on the $350 million term credit agreement was 0.70%. (B) As of March31, 2010, the interest rate on the $250 million term credit agreement was 1.25%. (C) As of March31, 2010, the weighted-average interest rate for the borrowings on the line of credit was 0.66%. As of March31, 2010, we had $320 million of borrowings and $11million of standby letters of credit outstanding; $419 million remained available for borrowing under our $750 million line of credit. As of April1, 2010, $294 million of the borrowings under our line of credit was repaid.

Stockholders' Equity

Stockholders' Equity (PLUM CREEK TIMBER CO INC [Member])
	3 Months Ended Mar. 31, 2010
Stockholders' Equity	Note 8. Stockholders' Equity The changes in the company's capital accounts were as follows during the first three months of 2010 (in millions): Common Stock AccumulatedOtherComprehensiveIncome (Loss) Shares Dollars Paid-inCapital RetainedEarnings TreasuryStock TotalEquity January1, 2010 162.8 $ 2 $ 2,233 $ 110 $ (860 ) $ (19 ) $ 1,466 Net Income 87 87 Other Comprehensive Income (Loss), net of tax (1 ) (1 ) Total Comprehensive Income 86 Dividends (68 ) (68 ) Shares Issued under Stock Incentive Plans 0.1 1 1 Share-based Compensation 2 2 Common Stock Repurchased (1 ) (1 ) March31, 2010 162.9 $ 2 $ 2,236 $ 129 $ (861 ) $ (20 ) $ 1,486

Partners' Capital

Partners' Capital (PLUM CREEK TIMBERLANDS L P [Member])
	3 Months Ended Mar. 31, 2010
Partners' Capital	Note 7. Partners' Capital The changes in the Operating Partnership's capital accounts were as follows during the first three months of 2010 (in millions): PreferredPartnershipInterest CommonPartners'Capital AccumulatedOtherComprehensiveIncome (Loss) TotalPartnershipCapital January1, 2010 $ 790 $ 1,485 $ (19 ) $ 2,256 Net Income before Allocation to Series T-1 Preferred Interest and Partners 101 101 Other Comprehensive Income (Loss), net of tax (1 ) (1 ) Total Comprehensive Income 100 Net Income Allocation to Series T-1 Preferred Interest 14 (14 ) Distributions to Partners (Common Partnership Interests) (69 ) (69 ) Distributions for Series T-1 Preferred Interest (14 ) (14 ) Capital Contributions from Parent 3 3 March31, 2010 $ 790 $ 1,506 $ (20 ) $ 2,276

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Fair Value Measurements	Note 9. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis. The company's fair value measurements of its financial instruments, measured on a recurring basis, are categorized as Level 1 measurements under the fair value hierarchy in the Accounting Standards Codification. 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 company's financial statements at fair value, measured on a recurring basis (in millions): BalanceatMarch31, 2010 FairValueMeasurementsat Reporting Date UsingQuoted Prices in ActiveMarketsofIdenticalAssets(Level 1 Measurements) Cash Equivalents (A) $ 300 $ 300 Available-for-Sale Securities (B) 28 28 Trading Securities (B) 5 5 Total $ 333 $ 333 Balance at December31,2009 FairValueMeasurements atReporting Date UsingQuoted Prices in ActiveMarketsofIdenticalAssets(Level 1 Measurements) Cash Equivalents (A) $ 298 $ 298 Available-for-Sale Securities (B) 28 28 Trading Securities (B) 5 5 Total $ 331 $ 331 (A) Consists of several money market funds and is included in the $304 million and $299 million of Cash and Cash Equivalents in the Consolidated Balance Sheets at March31, 2010 and December31, 2009, respectively. (B) Consists of several mutual funds and is included in Investment in Grantor Trusts in the Consolidated Balance Sheets at March31, 2010 and December31, 2009. At March31, 2010, investments in these mutual funds were approximately 40% in domestic (U.S.) equities, 20% in international equities and 40% in debt securities. Available-for-Sale Securities. Certain investments in the grantor trusts relate to the company's non-qualified pension plans and are classified as available-for-sale securities. The company has invested in various money market, 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 $28 million at both March 31, 2010 and December 31, 2009. 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 $5 million at both March 31, 2010 and December 31, 2009. The company records changes in unrealized holding gains and losses in Other Comprehensive Income. The change in unrealized holding gains and losses was less than $1 million for the three months ended March 31, 2010. Realized gains were less than $1 million for each of the three months ended March 31, 2010 and 2009. Trading Securities. Certain investments in the grantor trusts relate to the company's deferred compensation plans and are classified as trading securities. Deferred compensation amounts are invested in various money market, debt and equity mutual funds. The company plans to use these investments to fund deferred com
PLUM CREEK TIMBERLANDS L P [Member]
Fair Value Measurements	Note 8. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis. The Operating Partnership's fair value measurements of its financial instruments, measured on a recurring basis, are categorized as Level 1 measurements under the fair value hierarchy in the Accounting Standards Codification. 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 Partnership's financial statements at fair value, measured on a recurring basis (in millions): BalanceatMarch31, 2010 FairValueMeasurementsat Reporting Date UsingQuoted Prices in ActiveMarketsofIdenticalAssets(Level 1 Measurements) Cash Equivalents (A) $ 300 $300 Available-for-Sale Securities (B) 28 28 Trading Securities (B) 5 5 Total $ 333 $333 Balance atDecember31,2009 FairValueMeasurementsat Reporting Date UsingQuoted Prices in ActiveMarketsofIdenticalAssets(Level 1 Measurements) Cash Equivalents (A) $ 298 $ 298 Available-for-Sale Securities (B) 28 28 Trading Securities (B) 5 5 Total $ 331 $ 331 (A) Consists of several money market funds and is included in the $304 million and $299 million of Cash and Cash Equivalents in the Consolidated Balance Sheets at March31, 2010 and December31, 2009, respectively. (B) Consists of several mutual funds and is included in Investment in Grantor Trusts in the Consolidated Balance Sheets at March31, 2010 and December31, 2009. At March31, 2010, investments in these mutual funds were approximately 40% in domestic (U.S.) equities, 20% in international equities and 40% in debt securities. Available-for-Sale Securities. Certain investments in the grantor trusts relate to the Operating Partnership's non-qualified pension plans and are classified as available-for-sale securities. The Operating Partnership has invested in various money market, 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 $28 million at both March 31, 2010 and December 31, 2009. 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 $5 million at both March 31, 2010 and December 31, 2009. The Operating Partnership records changes in unrealized holding gains and losses in Other Comprehensive Income. The change in unrealized holding gains and losses was less than $1 million for the three months ended March 31, 2010. Realized gains were less than $1 million for each of the three months ended March 31, 2010 and 2009. Trading Securities. Certain investments in the grantor trusts relate to the Operating Partnership's deferred compensation plans and are classified as trading securities. Deferred compensation amounts are invested in various money market, debt and equity

Employee Pension Plans

Employee Pension Plans
	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Employee Pension Plans	Note 10. Employee Pension Plans The components of pension cost were as follows for the quarterly periods ended March 31 (in millions): QuarterEndedMarch31, 2010 2009 Service Cost $ 2 $ 2 Interest Cost 2 2 Expected Return on Plan Assets (2 ) (1 ) Total Pension Cost $ 2 $ 3
PLUM CREEK TIMBERLANDS L P [Member]
Employee Pension Plans	Note 9. Employee Pension Plans The components of pension cost were as follows for the quarterly periods ended March 31 (in millions): QuarterEndedMarch31, 2010 2009 Service Cost $ 2 $ 2 Interest Cost 2 2 Expected Return on Plan Assets (2 ) (1 ) Total Pension Cost $ 2 $ 3

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Commitments and Contingencies	Note 11. Commitments and Contingencies Contingencies. The company is subject to regulations regarding forest, harvest and manufacturing 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 October 6, 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 a claim with respect to 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. The company believes that there are strong defenses in the matter as it relates to Georgia-Pacific and, therefore, Plum Creek's indemnity obligations. Nonetheless, the parties to the case have agreed in principle to settle the matter as it pertains to Georgia-Pacific, although a definitive settlement agreement has not been executed. Our indemnification of Georgia-Pacific for the amount of the settlement is not material to our financial position or results of operations and was accrued in a prior period. 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 management's 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.
PLUM CREEK TIMBERLANDS L P [Member]
Commitments and Contingencies	Note 10. Commitments and Contingencies Contingencies. The Operating Partnership is subject to regulations regarding forest, harvest and manufacturing 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 October 6, 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 a claim with respect to 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. The Operating Partnership believes that there are strong defenses in the matter as it relates to Georgia-Pacific and, therefore, the Operating Partnership's indemnity obligations. Nonetheless, the parties to the case have agreed in principle to settle the matter as it pertains to Georgia-Pacific, although a definitive settlement agreement has not been executed. Our indemnification of Georgia-Pacific for the amount of the settlement is not material to our financial position or results of operations and was accrued in a prior period. 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 management's 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.

Variable Interest Entities

Variable Interest Entities
	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Variable Interest Entities	Note 12. Variable Interest Entities On October 1, 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. The Timberland Venture's other member contributed $783 million of cash in exchange for 91% of the Timberland Venture's common interest. Following the formation of the Timberland Venture, the company borrowed $783 million from the Timberland Venture ("Note Payable to Timberland Venture"). The company accounts for its interest in the Timberland Venture under the equity method of accounting. The Timberland Venture is a variable interest entity. The primary operating activities of the Timberland Venture consist of the ownership of timberlands and entering into cutting contracts with an affiliate of the other member. 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 $15 million 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 do not direct the activities that most significantly impact the Timberland Venture's economic performance. We believe that the activities that most significantly impact the Timberland Venture's economic performance include the managing of the timberlands along with the timing and extent of the harvesting activities, both of which we do not control. The carrying amount of the investment in the venture is $187 million at March 31, 2010 and $201 million at December 31, 2009, and it is reported in the Consolidated Balance Sheets as Equity Investment in Timberland Venture. Our maximum exposure to loss is $187 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.
PLUM CREEK TIMBERLANDS L P [Member]
Variable Interest Entities	Note 11. Variable Interest Entities On October 1, 2008, a subsidiary of the Operating Partnership, Plum Creek Timber Operations I, LLC ("PC Member"), 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. The Timberland Venture's other member, an affiliate of the Campbell Group LLC, contributed $783 million of cash in exchange for 91% of the Timberland Venture's common interest. Following the formation of the Timberland Venture, 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 Operating Partnership accounts for its interest in the Timberland Venture under the equity method of accounting. The Timberland Venture is a variable interest entity. The primary operating activities of the Timberland Venture consist of the ownership of timberlands and entering into cutting contracts with an affiliate of the other member. Besides quarterly distributions to PC Ventures which it uses to fund interest payments on the loan owed by PC Ventures, the Operating Partnership has not provided financing or other support to the venture. The venture is financed by a $15 million line of credit obtained by the Timberland Venture. We are not the primary beneficiary of the Timberland Venture. PC Member 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 do not direct the activities that most significantly impact the Timberland Venture's economic performance. We believe that the activities that most significantly impact the Timberland Venture's economic performance include the managing of the timberlands along with the timing and extent of the harvesting activities, both of which we do not control. The carrying amount of the investment in the venture is $187 million at March 31, 2010 and $201 million at December 31, 2009, and it is reported in the Consolidated Balance Sheets as Equity Investment in Timberland Venture. Our maximum exposure to loss is $187 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.

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010 PLUM CREEK TIMBER CO INC [Member]
PLUM CREEK TIMBER CO INC [Member]
Segment Information	Note 13. Segment Information The tables below present information about reported segments for the quarterly periods ended March 31 (in millions): NorthernResources SouthernResources RealEstate (A) ManufacturedProducts (B) Other(C) Total (D) Quarter Ended March31, 2010 External Revenues $ 53 $ 98 $ 99 $ 60 $ 7 $ 317 Intersegment Revenues 6 6 Depreciation, Depletion and Amortization 7 13 3 23 Basis of Real Estate Sold 32 32 Other Operating Gain / (Loss) 5 5 Operating Income 4 30 62 4 11 111 Quarter Ended March31, 2009 External Revenues $ 56 $ 83 $ 268 $ 58 $ 5 $ 470 Intersegment Revenues 1 1 Depreciation, Depletion and Amortization 7 11 14 32 Basis of Real Estate Sold 89 89 Operating Income (Loss) 2 20 170 (22 ) 5 175 (A) During 2008, the company negotiated the sale of 310,000 acres in Montana for $489 million, to be closed in three phases. Proceeds of $250 million from the second phase were received during the first quarter of 2009. The third and final phase is expected to close in the fourth quarter of 2010 for $89 million. For the quarter ended March31, 2009, the Real Estate Segment includes revenue of $250 million and operating income of $162 million related to the closing of the second phase. (B) For the quarter ended March31, 2009, 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. (C) During the first quarter of 2010, the company agreed to terminate a land lease for consideration of $5 million from the lessor. The land lease had been accounted for as an operating lease. The $5 million consideration is reported as Other Operating Gain/(Loss) in our Other Segment since the consideration was primarily for the release of mineral rights. The $5 million is included in Other Operating Income (Expense), net in the Consolidated Statements of Income. During the first quarter of 2010, we received $21 million for the sale of an undivided 50% interest in natural gas rights on approximately 110,000 acres in West Virginia and to modify an existing natural gas lease on the same acres. We allocated the proceeds based on relative fair value and determined that $11 million was for the sale of the natural gas rights and $10 million was for the modification of exploration rights under the existing lease. The fair value of the undivided 50% interest in natural gas rights was derived using an income approach based on discounted future cash flows. The discounted cash fl
PLUM CREEK TIMBERLANDS L P [Member]
Segment Information	Note 12. Segment Information The tables below present information about reported segments for the quarterly periods ended March 31 (in millions): NorthernResources SouthernResources RealEstate (A) ManufacturedProducts (B) Other(C) Total (D) Quarter Ended March31, 2010 External Revenues $ 53 $ 98 $ 99 $ 60 $ 7 $ 317 Intersegment Revenues 6 6 Depreciation, Depletion and Amortization 7 13 3 23 Basis of Real Estate Sold 32 32 Other Operating Gain / (Loss) 5 5 Operating Income 4 30 62 4 11 111 Quarter Ended March31, 2009 External Revenues $ 56 $ 83 $ 268 $ 58 $ 5 $ 470 Intersegment Revenues 1 1 Depreciation, Depletion and Amortization 7 11 14 32 Basis of Real Estate Sold 89 89 Operating Income (Loss) 2 20 170 (22 ) 5 175 (A) 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 $250 million from the second phase were received during the first quarter of 2009. The third and final phase is expected to close in the fourth quarter of 2010 for $89 million. For the quarter ended March31, 2009, the Real Estate Segment includes revenue of $250 million and operating income of $162 million related to the closing of the second phase. (B) For the quarter ended March31, 2009, the Manufactured Products Segment depreciation, depletion and amortization, and operating income (loss) include a $10 million lumber manufacturing assets impairment loss. See Note 4 of the Notes to Consolidated Financial Statements. (C) During the first quarter of 2010, the Operating Partnership agreed to terminate a land lease for consideration of $5 million from the lessor. The land lease had been accounted for as an operating lease. The $5 million consideration is reported as Other Operating Gain/(Loss) in our Other Segment since the consideration was primarily for the release of mineral rights. The $5 million is included in Other Operating Income (Expense), net in the Consolidated Statements of Income. During the first quarter of 2010, we received $21 million for the sale of an undivided 50% interest in natural gas rights on approximately 110,000 acres in West Virginia and to modify an existing natural gas lease on the same acres. We allocated the proceeds based on relative fair value and determined that $11 million was for the sale of the natural gas rights and $10 million was for the modification of exploration rights under the existing lease. The fair value of the undivided 50% interest in natural gas rights was derived using an income approach based on discounted future cash f

Subsequent Events

Subsequent Events (PLUM CREEK TIMBER CO INC [Member])
	3 Months Ended Mar. 31, 2010
Subsequent Events	Note 14. Subsequent Events Quarterly Dividend. On May 4, 2010, 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 May 28, 2010 to stockholders of record on May 14, 2010.

Supplemental Disclosures

Supplemental Disclosures (PLUM CREEK TIMBERLANDS L P [Member])
	3 Months Ended Mar. 31, 2010
Supplemental Disclosures	ITEM1. FINANCIAL STATEMENTS (CONTINUED) Included in this item are the consolidated financial statements related 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 March 31, 2010, 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.