Weyerhaeuser Earnings 2020-06-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

wy-10q_20200630.htm

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 JUNE 30, 2020

☐	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

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 July 27, 2020, 746,267 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	29
ITEM 4.	CONTROLS AND PROCEDURES	29

PART II	OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	29
ITEM 1A.	RISK FACTORS	29
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	30
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	30
ITEM 4.	MINE SAFETY DISCLOSURES	30
ITEM 5.	OTHER INFORMATION	30
ITEM 6.	EXHIBITS	31
	SIGNATURES	32

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

WEYERHAEUSER COMPANY

CONSOLIDATED STATEMENT OF OPERATIONS

(UNAUDITED)

	QUARTER ENDED						YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES	JUNE 2020			JUNE 2019			JUNE 2020			JUNE 2019
Net sales (Note 3)	$	1,631		$	1,692		$	3,359		$	3,335
Costs of sales		1,283			1,390			2,665			2,712
Gross margin		348			302			694			623
Selling expenses		18			21			40			42
General and administrative expenses		84			80			158			169
Other operating costs, net (Note 15)		3			15			13			52
Operating income		243			186			483			360
Non-operating pension and other postretirement benefit costs (Note 7)		(10	)		(10	)		(19	)		(480	)
Interest income and other		2			6			3			16
Interest expense, net of capitalized interest		(103	)		(91	)		(188	)		(198	)
Earnings (loss) before income taxes		132			91			279			(302	)
Income taxes (Note 16)		(60	)		37			(57	)		141
Net earnings (loss)	$	72		$	128		$	222		$	(161	)

Earnings (loss) per share, basic and diluted (Note 4)	$	0.10		$	0.17		$	0.30		$	(0.22	)
Weighted average shares outstanding (in thousands) (Note 4):
Basic		746,896			745,486			746,715			746,041
Diluted		746,984			746,232			747,070			746,041

See accompanying Notes to Consolidated Financial Statements.

WEYERHAEUSER COMPANY

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(UNAUDITED)

	QUARTER ENDED					YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS	JUNE 2020		JUNE 2019			JUNE 2020			JUNE 2019
Net earnings (loss)	$	72	$	128		$	222		$	(161	)
Other comprehensive income (loss):
Foreign currency translation adjustments		17		11			(25	)		25
Changes in unamortized actuarial loss, net of tax expense of $8, $9, $24 and $120		23		29			67			373
Changes in unamortized net prior service credit, net of tax expense of $0, $0, $0 and $0		1		(1	)		2			(1	)
Total other comprehensive income		41		39			44			397
Total comprehensive income	$	113	$	167		$	266		$	236

See accompanying Notes to Consolidated Financial Statements.

WEYERHAEUSER COMPANY

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

DOLLAR AMOUNTS IN MILLIONS, EXCEPT PAR VALUE	JUNE 30, 2020			DECEMBER 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	643		$	139
Receivables, net		420			309
Receivables for taxes		48			98
Inventories (Note 5)		409			416
Assets held for sale		—			140
Prepaid expenses and other current assets		131			147
Current restricted financial investments held by variable interest entities (Note 6)		—			362
Total current assets		1,651			1,611
Property and equipment, less accumulated depreciation of $3,493 and $3,477		1,958			1,969
Construction in progress		110			130
Timber and timberlands at cost, less depletion		11,780			11,929
Minerals and mineral rights, less depletion		275			281
Deferred tax assets		65			72
Other assets		415			414
Total assets	$	16,254		$	16,406
LIABILITIES AND EQUITY
Current liabilities:
Borrowings on line of credit (Note 9)		—			230
Accounts payable		199			246
Accrued liabilities (Note 8)		525			530
Total current liabilities		724			1,006
Long-term debt, net (Note 9)		6,299			6,147
Deferred tax liabilities		18			6
Deferred pension and other postretirement benefits (Note 7)		652			693
Other liabilities		359			377
Total liabilities		8,052			8,229
Commitments and contingencies (Note 11)
Equity:
Common shares: $1.25 par value; authorized 1,360 million shares; issued and outstanding: 746,251 thousand shares at June 30, 2020 and 745,300 thousand shares at December 31, 2019		933			932
Other capital		8,166			8,152
Accumulated deficit		(37	)		(3	)
Accumulated other comprehensive loss (Note 12)		(860	)		(904	)
Total equity		8,202			8,177
Total liabilities and equity	$	16,254		$	16,406

See accompanying Notes to Consolidated Financial Statements.

WEYERHAEUSER COMPANY

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

	YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS	JUNE 2020			JUNE 2019
Cash flows from operations:
Net earnings (loss)	$	222		$	(161	)
Noncash charges (credits) to earnings (loss):
Depreciation, depletion and amortization		240			247
Basis of real estate sold		96			81
Deferred income taxes, net		(2	)		(166	)
Pension and other postretirement benefits (Note 7)		37			496
Share-based compensation expense (Note 13)		15			16
Change in:
Receivables, net		(112	)		(87	)
Receivables and payables for taxes		61			(25	)
Inventories		2			(32	)
Prepaid expenses and other current assets		5			3
Accounts payable and accrued liabilities		(61	)		45
Pension and postretirement benefit contributions and payments		(16	)		(27	)
Other		(10	)		(8	)
Net cash from operations		477			382
Cash flows from investing activities:
Capital expenditures for property and equipment		(102	)		(112	)
Capital expenditures for timberlands reforestation		(32	)		(31	)
Proceeds from note receivable held by variable interest entities (Note 6)		362			253
Proceeds from sale of Montana timberlands (Note 14)		145			—
Other		3			19
Net cash from investing activities		376			129
Cash flows from financing activities:
Cash dividends on common shares		(254	)		(507	)
Net proceeds from issuance of long-term debt (Note 9)		732			739
Payments on long-term debt (Note 9)		(588	)		(512	)
Proceeds from borrowings on line of credit (Note 9)		550			385
Payments on line of credit (Note 9)		(780	)		(670	)
Proceeds from exercise of stock options		6			4
Repurchases of common shares (Note 4)		—			(60	)
Other		(15	)		(12	)
Net cash from financing activities		(349	)		(633	)
Net change in cash and cash equivalents		504			(122	)
Cash and cash equivalents at beginning of period		139			334
Cash and cash equivalents at end of period	$	643		$	212
Cash paid (received) during the period for:
Interest, net of amount capitalized of $3 and $2	$	178		$	187
Income taxes, net of refunds	$	1		$	51

See accompanying Notes to Consolidated Financial Statements.

WEYERHAEUSER COMPANY

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(UNAUDITED)

	QUARTER ENDED						YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES	JUNE 2020			JUNE 2019			JUNE 2020			JUNE 2019
Common shares:
Balance at beginning of period	$	933		$	931		$	932		$	933
Issued for exercise of stock options and vested restricted stock units		—			—			1			1
Repurchases of common shares (Note 4)		—			—			—			(3	)
Balance at end of period		933			931			933			931
Other capital:
Balance at beginning of period		8,159			8,121			8,152			8,172
Issued for exercise of stock options		—			2			6			4
Repurchases of common shares (Note 4)		—			—			—			(57	)
Shared-based compensation		8			7			15			16
Other transactions, net		(1	)		—			(7	)		(5	)
Balance at end of period		8,166			8,130			8,166			8,130
Retained earnings (accumulated deficit):
Balance at beginning of period		(109	)		543			(3	)		1,093
Net earnings (loss)		72			128			222			(161	)
Dividends on common shares		—			(253	)		(256	)		(507	)
Adjustments related to accounting pronouncements and other		—			—			—			(7	)
Balance at end of period		(37

Price	27.79	EPS	-0
Shares	747	P/E	-134
MCap	20,746	P/FCF	31
Net Debt	7,553	EBIT	188
TEV	28,299	TEV/EBIT	151
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-06-30	Filed 2020-07-31
10-Q	2020-03-31	Filed 2020-05-01
10-K	2019-12-31	Filed 2020-02-14
10-Q	2019-09-30	Filed 2019-10-25
10-Q	2019-06-30	Filed 2019-07-26
10-Q	2019-03-31	Filed 2019-04-26
10-K	2018-12-31	Filed 2019-02-15
10-Q	2018-09-30	Filed 2018-10-26
10-Q	2018-06-30	Filed 2018-07-27
10-Q	2018-03-31	Filed 2018-04-27
10-K	2017-12-31	Filed 2018-02-16
10-Q	2017-09-30	Filed 2017-10-27
10-Q	2017-06-30	Filed 2017-07-28
10-Q	2017-03-31	Filed 2017-04-28
10-K	2016-12-31	Filed 2017-02-24
10-Q	2016-09-30	Filed 2016-10-28
10-Q	2016-06-30	Filed 2016-08-05
10-Q	2016-03-31	Filed 2016-05-06
10-K	2015-12-31	Filed 2016-02-17
10-Q	2015-09-30	Filed 2015-10-30
10-Q	2015-06-30	Filed 2015-07-31
10-Q	2015-03-31	Filed 2015-05-01
10-K	2014-12-31	Filed 2015-02-13
10-Q	2014-09-30	Filed 2014-10-31
10-Q	2014-06-30	Filed 2014-08-04
10-Q	2014-03-31	Filed 2014-04-30
10-K	2013-12-31	Filed 2014-02-18
10-Q	2013-09-30	Filed 2013-11-04
10-Q	2013-06-30	Filed 2013-08-01
10-Q	2013-03-31	Filed 2013-04-30
10-K	2012-12-31	Filed 2013-02-19
10-Q	2012-09-30	Filed 2012-11-02
10-Q	2012-06-30	Filed 2012-08-03
10-Q	2012-03-31	Filed 2012-05-04
10-Q	2011-09-30	Filed 2011-11-04
10-Q	2011-06-30	Filed 2011-08-05
10-Q	2011-03-31	Filed 2011-05-06
10-Q	2010-09-30	Filed 2010-11-05
10-Q	2010-06-30	Filed 2010-08-06
10-Q	2010-03-31	Filed 2010-05-07
10-K	2009-12-31	Filed 2010-02-26

8-K	2020-09-02	Regulation FD, Exhibits
8-K	2020-08-31	Other Events, Exhibits
8-K	2020-08-20	Other Events, Exhibits
8-K	2020-08-14	Exhibits
8-K	2020-07-31	Earnings, Exhibits
8-K	2020-07-22	Enter Agreement, Exhibits
8-K	2020-06-02
8-K	2020-05-15
8-K	2020-05-01
8-K	2020-04-17
8-K	2020-03-30
8-K	2020-03-26
8-K	2020-03-02
8-K	2020-02-18
8-K	2020-01-31
8-K	2020-01-29
8-K	2020-01-22
8-K	2019-12-16
8-K	2019-11-12
8-K	2019-10-25
8-K	2019-09-16
8-K	2019-07-26
8-K	2019-06-04
8-K	2019-05-17
8-K	2019-04-26
8-K	2019-03-04
8-K	2019-02-21
8-K	2019-02-01
8-K	2019-01-23
8-K	2018-10-26
8-K	2018-08-23
8-K	2018-08-13
8-K	2018-07-27
8-K	2018-05-18
8-K	2018-04-27
8-K	2018-03-01
8-K	2018-02-02

EX-31.1	wy-ex311_7.htm
EX-31.2	wy-ex312_6.htm
EX-32	wy-ex32_8.htm

WY 10Q Quarterly Report

Weyerhaeuser Earnings 2020-06-30