10-Q 1 wy-10q_20220331.htm 10-Q wy-10q_20220331.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2022

or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM              TO             

COMMISSION FILE NUMBER: 1-4825

 

WEYERHAEUSER COMPANY

(Exact name of registrant as specified in its charter)

 

 

Washington

 

91-0470860

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

 

 

 

220 Occidental Avenue South

Seattle, Washington

 

98104-7800

(Address of principal executive offices)

 

(Zip Code)

 

(206) 539-3000

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange on which registered

Common Stock, par value $1.25 per share

 

WY

 

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.      Yes      No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).      Yes      No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

 

Accelerated filer

Non-accelerated filer

 

Smaller reporting company

Emerging growth company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No

As of April 25, 2022, 744,498 thousand shares of the registrant’s common stock ($1.25 par value) were outstanding.

 

 


 

 

TABLE OF CONTENTS

 

PART I

FINANCIAL INFORMATION

 

ITEM 1.

FINANCIAL STATEMENTS:

 

 

CONSOLIDATED STATEMENT OF OPERATIONS

1

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

2

 

CONSOLIDATED BALANCE SHEET

3

 

CONSOLIDATED STATEMENT OF CASH FLOWS

4

 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

5

 

INDEX FOR NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

6

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

7

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (MD&A)

14

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

24

ITEM 4.

CONTROLS AND PROCEDURES

24

 

 

 

PART II

OTHER INFORMATION

 

ITEM 1.

LEGAL PROCEEDINGS

24

ITEM 1A.

RISK FACTORS

24

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

24

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES – NOT APPLICABLE

 

ITEM 4.

MINE SAFETY DISCLOSURES – NOT APPLICABLE

 

ITEM 5.

OTHER INFORMATION – NOT APPLICABLE

 

ITEM 6.

EXHIBITS

26

 

SIGNATURES

27

 

 

 

 


 

 

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

 

WEYERHAEUSER COMPANY

CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)

 

 

 

QUARTER ENDED

 

DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES

 

MARCH 2022

 

 

MARCH 2021

 

Net sales (Note 3)

 

$

3,112

 

 

$

2,506

 

Costs of sales

 

 

1,647

 

 

 

1,430

 

Gross margin

 

 

1,465

 

 

 

1,076

 

Selling expenses

 

 

23

 

 

 

20

 

General and administrative expenses

 

 

92

 

 

 

90

 

Other operating costs, net (Note 13)

 

 

6

 

 

 

10

 

Operating income

 

 

1,344

 

 

 

956

 

Non-operating pension and other post-employment benefit costs (Note 6)

 

 

(15

)

 

 

(8

)

Interest income and other

 

 

(1

)

 

 

1

 

Interest expense, net of capitalized interest

 

 

(72

)

 

 

(79

)

Loss on debt extinguishment (Note 8)

 

 

(276

)

 

 

 

Earnings before income taxes

 

 

980

 

 

 

870

 

Income taxes (Note 14)

 

 

(209

)

 

 

(189

)

Net earnings

 

$

771

 

 

$

681

 

 

 

 

 

 

 

 

 

 

Earnings per share, basic and diluted (Note 4)

 

$

1.03

 

 

$

0.91

 

Weighted average shares outstanding (in thousands) (Note 4):

 

 

 

 

 

 

 

 

Basic

 

 

747,507

 

 

 

748,718

 

Diluted

 

 

748,823

 

 

 

750,024

 

 

See accompanying Notes to Consolidated Financial Statements.

1


 

 

WEYERHAEUSER COMPANY

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(UNAUDITED)

 

 

 

QUARTER ENDED

 

DOLLAR AMOUNTS IN MILLIONS

 

MARCH 2022

 

 

MARCH 2021

 

Net earnings

 

$

771

 

 

$

681

 

Other comprehensive income (loss):

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

16

 

 

 

9

 

Changes in unamortized actuarial loss, net of tax expense of $5 and $7

 

 

13

 

 

 

20

 

Changes in unamortized net prior service credit, net of tax (expense) benefit of ($1) and $1

 

 

 

 

 

1

 

Total other comprehensive income

 

 

29

 

 

 

30

 

Total comprehensive income

 

$

800

 

 

$

711

 

 

See accompanying Notes to Consolidated Financial Statements.

2


 

 

WEYERHAEUSER COMPANY

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

 

DOLLAR AMOUNTS IN MILLIONS, EXCEPT PAR VALUE

 

MARCH 31,

2022

 

 

DECEMBER 31,

2021

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,205

 

 

$

1,879

 

Receivables, net

 

 

745

 

 

 

507

 

Receivables for taxes

 

 

8

 

 

 

24

 

Inventories (Note 5)

 

 

611

 

 

 

520

 

Prepaid expenses and other current assets

 

 

206

 

 

 

205

 

Total current assets

 

 

2,775

 

 

 

3,135

 

Property and equipment, less accumulated depreciation of $3,654 and $3,592

 

 

2,026

 

 

 

2,057

 

Construction in progress

 

 

203

 

 

 

175

 

Timber and timberlands at cost, less depletion

 

 

11,469

 

 

 

11,510

 

Minerals and mineral rights, less depletion

 

 

252

 

 

 

255

 

Deferred tax assets

 

 

15

 

 

 

17

 

Other assets

 

 

376

 

 

 

503

 

Total assets

 

$

17,116

 

 

$

17,652

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

310

 

 

$

281

 

Accrued liabilities (Note 7)

 

 

674

 

 

 

673

 

Total current liabilities

 

 

984

 

 

 

954

 

Long-term debt, net (Note 8)

 

 

5,053

 

 

 

5,099

 

Deferred tax liabilities

 

 

66

 

 

 

46

 

Deferred pension and other post-employment benefits (Note 6)

 

 

432

 

 

 

440

 

Other liabilities

 

 

344

 

 

 

346

 

Total liabilities

 

 

6,879

 

 

 

6,885

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

Common shares: $1.25 par value; authorized 1,360 million shares; issued and outstanding: 745,442 thousand shares at March 31, 2022 and 747,301 thousand shares at December 31, 2021

 

 

932

 

 

 

934

 

Other capital

 

 

8,076

 

 

 

8,181

 

Retained earnings

 

 

1,679

 

 

 

2,131

 

Accumulated other comprehensive loss (Note 11)

 

 

(450

)

 

 

(479

)

Total equity

 

 

10,237

 

 

 

10,767

 

Total liabilities and equity

 

$

17,116

 

 

$

17,652

 

 

See accompanying Notes to Consolidated Financial Statements.

3


 

 

WEYERHAEUSER COMPANY

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

 

 

 

QUARTER ENDED

 

DOLLAR AMOUNTS IN MILLIONS

 

MARCH 2022

 

 

MARCH 2021

 

Cash flows from operations:

 

 

 

 

 

 

 

 

Net earnings

 

$

771

 

 

$

681

 

Noncash charges (credits) to earnings:

 

 

 

 

 

 

 

 

Depreciation, depletion and amortization

 

 

122

 

 

 

118

 

Basis of real estate sold

 

 

31

 

 

 

27

 

Deferred income taxes, net

 

 

14

 

 

 

8

 

Pension and other post-employment benefits (Note 6)

 

 

25

 

 

 

19

 

Share-based compensation expense (Note 12)

 

 

8

 

 

 

7

 

Loss on debt extinguishment

 

 

276

 

 

 

 

Change in:

 

 

 

 

 

 

 

 

Receivables, net

 

 

(238

)

 

 

(139

)

Receivables and payables for taxes

 

 

110

 

 

 

120

 

Inventories

 

 

(87

)

 

 

(60

)

Prepaid expenses and other current assets

 

 

(1

)

 

 

(2

)

Accounts payable and accrued liabilities

 

 

(62

)

 

 

(60

)

Pension and post-employment benefit contributions and payments

 

 

(4

)

 

 

(8

)

Other

 

 

(8

)

 

 

(13

)

Net cash from operations

 

 

957

 

 

 

698

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Capital expenditures for property and equipment

 

 

(50

)

 

 

(31

)

Capital expenditures for timberlands reforestation

 

 

(20

)

 

 

(22

)

Acquisition of timberlands

 

 

(18

)

 

 

 

Other

 

 

1

 

 

 

 

Net cash from investing activities

 

 

(87

)

 

 

(53

)

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Cash dividends on common shares

 

 

(1,218

)

 

 

(127

)

Net proceeds from issuance of long-term debt (Note 8)

 

 

881

 

 

 

 

Payments on long-term debt (Note 8)

 

 

(1,203

)

 

 

 

Proceeds from exercise of stock options

 

 

12

 

 

 

17

 

Repurchases of common shares (Note 4)

 

 

(118

)

 

 

 

Other

 

 

(18

)

 

 

(14

)

Net cash from financing activities

 

 

(1,664

)

 

 

(124

)

Net change in cash, cash equivalents and restricted cash

 

 

(794

)

 

 

521

 

Cash, cash equivalents and restricted cash at beginning of period

 

 

1,999

 

 

 

495

 

Cash, cash equivalents and restricted cash at end of period

 

$

1,205

 

 

$

1,016

 

Cash paid (received) during the period for:

 

 

 

 

 

 

 

 

Interest, net of amount capitalized of $1 and $1

 

$

78

 

 

$

75

 

Income taxes, net of refunds

 

$

85

 

 

$

66

 

 

See accompanying Notes to Consolidated Financial Statements.

4


 

 

WEYERHAEUSER COMPANY

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(UNAUDITED)

 

 

 

QUARTER ENDED

 

DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES

 

MARCH 2022

 

 

MARCH 2021

 

Common shares:

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

934

 

 

$

934

 

Issued for exercise of stock options and vested units

 

 

2

 

 

 

2

 

Repurchases of common shares (Note 4)

 

 

(4

)

 

 

 

Balance at end of period

 

 

932

 

 

 

936

 

Other capital:

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

8,181

 

 

 

8,208

 

Issued for exercise of stock options

 

 

11

 

 

 

16

 

Repurchases of common shares (Note 4)

 

 

(117

)

 

 

 

Share-based compensation

 

 

8

 

 

 

7

 

Other transactions, net

 

 

(7

)

 

 

(9

)

Balance at end of period

 

 

8,076

 

 

 

8,222

 

Retained earnings:

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

2,131

 

 

 

411

 

Net earnings

 

 

771

 

 

 

681

 

Dividends on common shares

 

 

(1,223

)

 

 

(130

)

Balance at end of period

 

 

1,679

 

 

 

962

 

Accumulated other comprehensive loss:

 

 

 

 

 

 

 

 

Balance at beginning of period

 

 

(479

)

 

 

(822

)

Other comprehensive income

 

 

29

 

 

 

30

 

Balance at end of period (Note 11)

 

 

(450

)

 

 

(792

)

Total equity:

 

 

 

 

 

 

 

 

Balance at end of period

 

$

10,237

 

 

$

9,328

 

 

 

 

 

 

 

 

 

 

Dividends paid per common share

 

$

1.63

 

 

$

0.17

 

 

See accompanying Notes to Consolidated Financial Statements.

5


 

 

INDEX FOR NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1:

BASIS OF PRESENTATION

7

 

 

 

NOTE 2:

BUSINESS SEGMENTS

7

 

 

 

NOTE 3:

REVENUE RECOGNITION

8

 

 

 

NOTE 4:

NET EARNINGS PER SHARE AND SHARE REPURCHASES

8

 

 

 

NOTE 5:

INVENTORIES

9

 

 

 

NOTE 6:

PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS

10

 

 

 

NOTE 7:

ACCRUED LIABILITIES

10

 

 

 

NOTE 8:

LONG-TERM DEBT AND LINE OF CREDIT

10

 

 

 

NOTE 9:

FAIR VALUE OF FINANCIAL INSTRUMENTS

11

 

 

 

NOTE 10:

LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES

11

 

 

 

NOTE 11:

ACCUMULATED OTHER COMPREHENSIVE LOSS

12

 

 

 

NOTE 12:

SHARE-BASED COMPENSATION

12

 

 

 

NOTE 13:

OTHER OPERATING COSTS, NET

13

 

 

 

NOTE 14:

INCOME TAXES

13

NOTE 15:

RESTRICTED CASH

13

NOTE 16:

TIMBERLAND ACQUISITION

13

 

 

 

 

6


 

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE QUARTERS ENDED MARCH 31, 2022 AND 2021

 

NOTE 1: BASIS OF PRESENTATION

Our consolidated financial statements provide an overall view of our results of operations, financial condition and cash flows. They include our accounts and the accounts of entities we control, including majority-owned domestic and foreign subsidiaries. They do not include our intercompany transactions and accounts, which are eliminated. Throughout these Notes to Consolidated Financial Statements, unless specified otherwise, references to “Weyerhaeuser,” “we,” “the company” and “our” refer to the consolidated company.

The accompanying unaudited Consolidated Financial Statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Except as otherwise disclosed in these Notes to Consolidated Financial Statements, such adjustments are of a normal, recurring nature. The Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements. Certain information and footnote disclosures normally included in our annual Consolidated Financial Statements have been condensed or omitted. These quarterly Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2021. Results of operations for interim periods should not necessarily be regarded as indicative of the results that may be expected for the full year.

 

 

NOTE 2: BUSINESS SEGMENTS

We are principally engaged in growing and harvesting timber; manufacturing, distributing and selling products made from trees; maximizing the value of every acre we own through the sale of higher and better use (HBU) properties; and monetizing the value of surface and subsurface assets through leases and royalties. Our business segments are categorized based primarily on products and services which include:

Timberlands – Logs, timber, recreational leases and other products;

Real Estate, Energy and Natural Resources (Real Estate & ENR) – Real Estate (sales of timberlands) and ENR (rights to explore for and extract hard minerals, construction materials, natural gas, and wind and solar resources) and

Wood Products – Structural lumber, oriented strand board, engineered wood products and building materials distribution.

A reconciliation of our business segment information to the respective information in the Consolidated Statement of Operations is as follows:

 

 

 

QUARTER ENDED

 

DOLLAR AMOUNTS IN MILLIONS

 

MARCH 2022

 

 

MARCH 2021

 

Sales to unaffiliated customers:

 

 

 

 

 

 

 

 

Timberlands

 

$

465

 

 

$

379

 

Real Estate & ENR

 

 

128

 

 

 

106

 

Wood Products

 

 

2,519

 

 

 

2,021

 

 

 

 

3,112

 

 

 

2,506

 

Intersegment sales:

 

 

 

 

 

 

 

 

Timberlands

 

 

161

 

 

 

134

 

 

 

 

 

 

 

 

 

 

Total sales

 

 

3,273

 

 

 

2,640

 

Intersegment eliminations

 

 

(161

)

 

 

(134

)

Total

 

$

3,112

 

 

$

2,506

 

Net contribution (charge) to earnings:

 

 

 

 

 

 

 

 

Timberlands

 

$

182

 

 

$

108

 

Real Estate & ENR

 

 

81

 

 

 

66

 

Wood Products

 

 

1,182

 

 

 

840

 

 

 

 

1,445

 

 

 

1,014

 

Unallocated items(1)

 

 

(117

)

 

 

(65

)

Net contribution to earnings

 

 

1,328

 

 

 

949

 

Interest expense, net of capitalized interest

 

 

(72

)

 

 

(79

)

Loss on debt extinguishment

 

 

(276

)

 

 

 

Earnings before income taxes

 

 

980

 

 

 

870

 

Income taxes

 

 

(209

)

 

 

(189

)

Net earnings

 

$

771

 

 

$

681

 

(1)

Unallocated items are gains or charges not related to, or allocated to, an individual operating segment. They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.

7


 

 

NOTE 3: REVENUE RECOGNITION

A reconciliation of revenue recognized by our major products:

 

 

 

QUARTER ENDED

 

DOLLAR AMOUNTS IN MILLIONS

 

MARCH 2022

 

 

MARCH 2021

 

Net sales to unaffiliated customers:

 

 

 

 

 

 

 

 

Timberlands segment

 

 

 

 

 

 

 

 

Delivered logs:

 

 

 

 

 

 

 

 

West

 

 

 

 

 

 

 

 

Domestic sales

 

$

113

 

 

$

79

 

Export grade sales

 

 

146

 

 

 

122

 

Subtotal West

 

 

259

 

 

 

201

 

South

 

 

154

 

 

 

131

 

North

 

 

15

 

 

 

16

 

Subtotal delivered logs sales

 

 

428

 

 

 

348

 

Stumpage and pay-as-cut timber

 

 

9

 

 

 

6

 

Recreational and other lease revenue

 

 

17

 

 

 

16

 

Other(1)

 

 

11

 

 

 

9

 

Net sales attributable to Timberlands segment

 

 

465

 

 

 

379

 

Real Estate & ENR segment

 

 

 

 

 

 

 

 

Real estate

 

 

97

 

 

 

84

 

Energy and natural resources

 

 

31

 

 

 

22

 

Net sales attributable to Real Estate & ENR segment

 

 

128

 

 

 

106

 

Wood Products segment

 

 

 

 

 

 

 

 

Structural lumber

 

 

1,206

 

 

 

990

 

Oriented strand board

 

 

564

 

 

 

438

 

Engineered solid section

 

 

196

 

 

 

142

 

Engineered I-joists

 

 

137

 

 

 

83

 

Softwood plywood

 

 

58

 

 

 

56

 

Medium density fiberboard

 

 

48

 

 

 

48

 

Complementary building products

 

 

215

 

 

 

171

 

Other(2)

 

 

95

 

 

 

93

 

Net sales attributable to Wood Products segment

 

 

2,519

 

 

 

2,021

 

Total net sales

 

$

3,112

 

 

$

2,506

 

 

(1)

Other Timberlands sales include sales of seeds and seedlings from our nursery operations as well as wood chips.

(2)

Other Wood Products sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations.

 

 

NOTE 4: NET EARNINGS PER SHARE AND SHARE REPURCHASES

 

Our basic and diluted earnings per share were:

$1.03 during first quarter 2022 and  

$0.91 during first quarter 2021.

Basic earnings per share is net earnings divided by the weighted average number of our outstanding common shares, including stock equivalent units where there is no circumstance under which those shares would not be issued. Diluted earnings per share is net earnings divided by the sum of the weighted average number of our outstanding common shares and the effect of our outstanding dilutive potential common shares.

8


 

 

 

QUARTER ENDED

 

SHARES IN THOUSANDS

 

MARCH 2022

 

 

MARCH 2021

 

Weighted average common shares outstanding – basic

 

 

747,507

 

 

 

748,718

 

Dilutive potential common shares:

 

 

 

 

 

 

 

 

Stock options

 

 

384

 

 

 

217

 

Restricted stock units

 

 

420

 

 

 

738

 

Performance share units

 

 

512

 

 

 

351

 

Total effect of outstanding dilutive potential common shares

 

 

1,316

 

 

 

1,306

 

Weighted average common shares outstanding – dilutive

 

 

748,823

 

 

 

750,024

 

 

We use the treasury stock method to calculate the dilutive effect of our outstanding stock options, restricted stock units and performance share units.

Potential Shares Not Included in the Computation of Diluted Earnings per Share

The following shares were not included in the computation of diluted earnings per share because they were either antidilutive or the required performance or market conditions were not met. Some or all of these shares may be dilutive potential common shares in future periods.

 

 

 

QUARTER ENDED

 

SHARES IN THOUSANDS

 

MARCH 2022

 

 

MARCH 2021

 

Stock options

 

 

 

 

 

147

 

Performance share units

 

 

693

 

 

 

1,115

 

 

Share Repurchase Program

On September 22, 2021, we announced that our board of directors approved a new share repurchase program (the 2021 Repurchase Program) under which we are authorized to repurchase up to $1 billion of outstanding shares. Concurrently, the board terminated the remaining repurchase authorization under the share repurchase program approved by the board in February 2019 (the 2019 Repurchase Program).

During first quarter 2022, we repurchased 3,197,675 common shares for approximately $121 million under the 2021 Repurchase Program. As of March 31, 2022, we had remaining authorization of $806 million for future share repurchases. We did not repurchase shares during first quarter 2021.

All common stock repurchases under the 2021 Repurchase Program were made in open-market transactions. We record share repurchases upon trade date as opposed to the settlement date when cash is disbursed. We record a liability for repurchases that have not yet been settled as of period end. There were 78,380 unsettled shares (approximately $3 million) as of March 31, 2022 and no unsettled shares as of December 31, 2021.

 

 

NOTE 5: INVENTORIES

Inventories include raw materials, work-in-process, finished goods, as well as materials and supplies.

DOLLAR AMOUNTS IN MILLIONS

 

MARCH 31,

2022

 

 

DECEMBER 31,

2021

 

LIFO inventories:

 

 

 

 

 

 

 

 

Logs

 

$

30

 

 

$

26

 

Lumber, plywood, panels and fiberboard

 

 

80

 

 

 

61

 

Other products

 

 

22

 

 

 

17

 

Moving average cost or FIFO inventories:

 

 

 

 

 

 

 

 

Logs

 

 

104

 

 

 

65

 

Lumber, plywood, panels, fiberboard and engineered wood products

 

 

116

 

 

 

106

 

Other products

 

 

140

 

 

 

131

 

Materials and supplies

 

 

119

 

 

 

114

 

Total

 

$

611

 

 

$

520

 

 

LIFO – the last-in, first-out method – applies to major inventory products held at our U.S. locations. The moving average cost method or FIFO – the first-in, first-out method – applies to the balance of our U.S. raw material and product inventories, all material and supply inventories and all foreign inventories.