Weyerhaeuser reports fourth quarter, full year results

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Jan 31, 2020, 03:05 ET

SEATTLE, Jan. 31, 2020 /PRNewswire/ -- Weyerhaeuser Company (NYSE: WY) today reported a fourth quarter net loss of $14 million, or two cents per diluted share, on net sales of $1.5 billion. This compares with a net loss of $93 million, or 12 cents per diluted share, on net sales of $1.6 billion for the same period last year and net earnings of $99 million for the third quarter of 2019.

View our earnings release and financial statements in a printer-friendly PDF.

Excluding net after-tax charges of $37 million for special items, the company reported fourth quarter net earnings of $23 million, or three cents per diluted share. This compares with net earnings before special items of $70 million for the same period last year and $59 million for the third quarter of 2019.

Adjusted EBITDA for the fourth quarter of 2019 was $260 million compared with $346 million for the same period last year and $308 million for the third quarter of 2019.

For the full year 2019, Weyerhaeuser reported a net loss of $76 million, or 10 cents per diluted share, on net sales of $6.6 billion. This compares with net earnings of $748 million on net sales of $7.5 billion for the full year 2018.

Full year 2019 includes net after-tax charges of $361 million for special items. Excluding these items, the company reported net earnings before special items of $285 million, or 39 cents per diluted share. This compares with net earnings before special items of $891 million for the full year 2018.

"Our 2019 performance reflects strong execution across all businesses despite significant headwinds from a sluggish housing market, global trade uncertainty, and persistently challenged commodity prices," said Devin W. Stockfish, president and chief executive officer. "Through our continued focus on operational excellence, we achieved record low cost performance in lumber and oriented strand board and delivered the highest EBITDA ever from our Real Estate & ENR business. Additionally, we reduced our pension obligations by $1.5 billion, strategically optimized a significant portion of our Northern timberlands portfolio, and returned over $1 billion of cash to shareholders. Entering 2020, we are encouraged by the recent pickup in U.S. housing activity, and we expect modest growth will drive improvement across our markets as the year progresses. We remain focused on creating value for shareholders through industry-leading operating performance and disciplined capital allocation."

WEYERHAEUSER FINANCIAL HIGHLIGHTS	2019	2019	2018	2019	2018
(millions, except per share data)	Q3	Q4	Q4	Full Year	Full Year
Net sales	$1,671	$1,548	$1,636	$6,554	$7,476
Net earnings (loss)	$99	($14)	($93)	($76)	$748
Net earnings (loss) per diluted share	$0.13	($0.02)	($0.12)	($0.10)	$0.99
Weighted average shares outstanding, diluted	747	746	750	746	757
Net earnings before special items⁽¹⁾⁽²⁾	$59	$23	$70	$285	$891
Net earnings per diluted share before special items⁽¹⁾	$0.08	$0.03	$0.10	$0.39	$1.18
Adjusted EBITDA⁽¹⁾	$308	$260	$346	$1,276	$2,032


(1)	Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Additionally, Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold and special items. Net earnings before special items and Adjusted EBITDA should not be considered in isolation from, and are not intended to represent an alternative to, our GAAP results. Reconciliations of Net earnings before special items and Adjusted EBITDA to GAAP earnings are included within this release.

(2)	Fourth quarter 2019 after-tax special items include an $80 million noncash impairment charge related to the previously announced sale of our Montana timberlands, a $48 million gain on the sale of our Michigan timberlands and a $5 million pension settlement charge related to the transfer of Canadian pension assets and liabilities through purchases of group annuity contracts. Special items for other periods presented are included in the reconciliation tables following this release.

TIMBERLANDS

FINANCIAL HIGHLIGHTS	2019	2019
(millions)	Q3	Q4	Change
Net sales	$523	$510	($13)
Net contribution to pretax earnings	$72	$53	($19)
Pretax charge for special items	$—	$32	$32
Net contribution to pretax earnings before special items	$72	$85	$13
Adjusted EBITDA	$154	$158	$4

Q4 2019 Performance – In the West, average sales realizations for domestic and Japan export logs were modestly higher and fee harvest volumes increased slightly. Western road and forestry spending was seasonally lower. In the South, average log sales realizations declined slightly and fee harvest volumes were lower.

Fourth quarter special items include a $48 million gain on the sale of the company's Michigan timberlands, which closed in November, and an $80 million noncash impairment charge related to the previously announced sale of our Montana timberlands. The Montana transaction is subject to customary closing conditions and is expected to be completed in the second quarter.

Q1 2020 Outlook – Weyerhaeuser expects first quarter earnings and Adjusted EBITDA will be slightly higher than the fourth quarter. In the West, the company anticipates higher domestic and export log sales volumes, modestly higher average domestic log sales realizations and lower road spending. In the South, the company expects seasonally lower fee harvest volumes and average log sales realizations comparable with the fourth quarter average.

REAL ESTATE, ENERGY & NATURAL RESOURCES

FINANCIAL HIGHLIGHTS	2019	2019
(millions)	Q3	Q4	Change
Net sales	$69	$46	($23)
Net contribution to pretax earnings	$32	$22	($10)
Adjusted EBITDA	$60	$37	($23)

Q4 2019 Performance – Earnings and Adjusted EBITDA decreased due to fewer real estate sales and lower construction materials and energy royalties in our Energy & Natural Resources business. The segment reported full year Adjusted EBITDA of $274 million.

Q1 2020 Outlook – Weyerhaeuser anticipates first quarter earnings and Adjusted EBITDA will be significantly higher than the fourth quarter due to the timing of Real Estate transactions. The company expects full year 2020 Adjusted EBITDA for the segment will be approximately $255 million. This guidance incorporates the effect of fewer available real estate acres following the divestitures of our Montana and Michigan timberlands.

WOOD PRODUCTS

FINANCIAL HIGHLIGHTS	2019	2019
(millions)	Q3	Q4	Change
Net sales	$1,204	$1,115	($89)
Net contribution to pretax earnings	$143	$60	($83)
Pretax benefit for special items	($68)	$—	$68
Net contribution to pretax earnings before special items	$75	$60	($15)
Adjusted EBITDA	$123	$110	($13)

Q4 2019 Performance – Sales volumes declined seasonally and Western and Canadian log costs increased compared with the third quarter. Per unit manufacturing costs improved due to strong operating performance and ongoing operational excellence initiatives.

Average sales realizations for oriented strand board improved slightly. In lumber, although the benchmark Framing Lumber Composite price improved modestly in the fourth quarter, published average pricing for wide-width Southern yellow pine lumber decreased. Weyerhaeuser's average lumber sales realizations were comparable with the third quarter average, reflecting the company's regional and product mix.

Q1 2020 Outlook – Weyerhaeuser anticipates first quarter earnings and Adjusted EBITDA will be slightly higher than the fourth quarter, before any improvement in average sales realizations. The company expects seasonally improved operating rates and manufacturing costs for engineered wood products and slightly higher sales volumes for lumber and oriented strand board.

UNALLOCATED

FINANCIAL HIGHLIGHTS	2019	2019
(millions)	Q3	Q4	Change
Net charge to pretax earnings	($54)	($59)	($5)
Pretax charge for special items	$15	$6	($9)
Net charge to pretax earnings before special items	($39)	($53)	($14)
Adjusted EBITDA	($29)	($45)	($16)

Q4 2019 Performance – Unallocated corporate function and variable compensation expense increased due to seasonally higher spending and a year-to-date adjustment for incentive compensation. Fourth quarter results also include a small expense from elimination of intersegment profit in inventory and LIFO compared with income from this item in the third quarter.

Fourth quarter pretax special items consist of a $6 million noncash non-operating settlement charge related to the transfer of Canadian pension assets and liabilities through purchases of group annuity contracts.

ABOUT WEYERHAEUSER

Weyerhaeuser Company, one of the world's largest private owners of timberlands, began operations in 1900. We own or control approximately 11 million acres of timberlands in the U.S., and manage additional timberlands under long-term licenses in Canada. We manage these timberlands on a sustainable basis in compliance with internationally recognized forestry standards. We are also one of the largest manufacturers of wood products in America. Our company is a real estate investment trust. In 2019, we generated $6.6 billion in net sales and employed approximately 9,400 people who serve customers worldwide. We are listed on the Dow Jones Sustainability North America Index. Our common stock trades on the New York Stock Exchange under the symbol WY. Learn more at https://www.weyerhaeuser.com/.

EARNINGS CALL INFORMATION

Weyerhaeuser will hold a live conference call at 7 a.m. Pacific (10 a.m. Eastern) on January 31, 2020 to discuss fourth quarter results.

To access the live webcast and presentation online, go to the Investor Relations section on www.weyerhaeuser.com on January 31, 2020.

To join the conference call from within North America, dial 855-223-0757 (access code: 2195447) at least 15 minutes prior to the call. Those calling from outside North America should dial 574-990-1206 (access code: 2195447). Replays will be available for two weeks at 855-859-2056 (access code: 2195447) from within North America and at 404-537-3406 (access code: 2195447) from outside North America.

FORWARD-LOOKING STATEMENTS

This news release contains statements concerning the company's future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934, including with respect to the following: our earnings, earnings before special items, Adjusted EBITDA; average log sale realizations; log sale volumes; and fee harvest volumes in our timber business; sales volumes as well as manufacturing operating costs and operating rates for Wood Products. These statements generally are identified by words such as "believe," "project," "expect," "anticipate," "estimate," "intend," "strategy," "future," "opportunity," "plan," "may," "should," "will," "would," and expressions such as "will be," "will continue," "will likely result," and similar words and expressions. These statements are based on our current expectations and assumptions and are not guarantees of future performance. The realization of our expectations and the accuracy of our assumptions are subject to a number of risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include, but are not limited to:

the effect of general economic conditions, including employment rates, interest rate levels, housing starts, availability of financing for home mortgages and strength of the U.S. dollar;
market demand for our products, including market demand for our timberland properties with higher and better uses, which is related to, among other factors, the strength of the various U.S. business segments and U.S. and international economic conditions;
changes in currency exchange rates, particularly the relative value of the U.S. dollar to the Japanese yen, the Chinese yuan and the Canadian dollar, and the relative value of the euro to the yen;
restrictions on international trade and tariffs imposed on imports or exports;
the availability and cost of shipping and transportation;
economic activity in Asia, especially Japan and China;
performance of our manufacturing operations, including maintenance and capital requirements;
potential disruptions in our manufacturing operations;
the level of competition from domestic and foreign producers;
raw material availability and prices;
the effect of weather;
changes in global or regional climate conditions and governmental response to such changes;
the risk of loss from fires, floods, windstorms, hurricanes, pest infestation and other natural disasters;
energy prices;
our operational excellence initiatives;
the successful and timely execution and integration of our strategic acquisitions, including our ability to realize expected benefits and synergies, and the successful and timely execution of our strategic divestitures, each of which is subject to a number of risks and conditions beyond our control including, but not limited to, timing and required regulatory approvals;
transportation and labor availability and costs;
federal tax policies;
the effect of forestry, land use, environmental and other governmental regulations;
legal proceedings;
performance of pension fund investments and related derivatives;
the effect of timing of retirements and changes in the market price of our common stock on charges for share-based compensation;
the accuracy of our estimates of costs and expenses related to contingent liabilities;
changes in accounting principles; and
other matters described under "Risk Factors" in our annual reports on Form 10-K, as well as those set forth from time to time in our other public statements and other reports and filings with the Securities and Exchange Commission.

Forward-looking statements speak only as of the date they are made, and we undertake no obligation to publicly update or revise any forward-looking statements, whether because of new information, future events, or otherwise.

For more information contact:
Analysts: Beth Baum, 206- 539-3907
Media: Nancy Thompson, 919-861-0342

RECONCILIATION OF ADJUSTED EBITDA TO NET EARNINGS (LOSS)

We reconcile Adjusted EBITDA to net earnings (loss) for the consolidated company and to operating income (loss) for the business segments, as those are the most directly comparable U.S. GAAP measures for each.

The table below reconciles Adjusted EBITDA for the year ended December 31, 2019:

(millions)	Timberlands		Real Estate & ENR		Wood Products		Unallocated Items		Total
Adjusted EBITDA by Segment:
Net earnings (loss)									$	(76)
Interest expense, net of capitalized interest⁽¹⁾										378
Income taxes										(137)
Net contribution (charge) to earnings	$	347	$	144	$	353	$	(679)	$	165
Non-operating pension and other postretirement benefit costs⁽²⁾		—		—		—		516		516
Interest income and other		—		—		—		(30)		(30)
Operating income (loss)		347		144		353		(193)		651
Depreciation, depletion and amortization		301		14		191		4		510
Basis of real estate sold		—		116		—		—		116
Special items included in operating income (loss)^(3)(4)(5)		32		—		(68)		35		(1)
Adjusted EBITDA	$	680	$	274	$	476	$	(154)	$	1,276


(1)	Interest expense, net of capitalized interest includes a pretax special item consisting of a $12 million charge related to the early extinguishment of debt.
(2)	Non-operating pension and other postretirement benefit costs includes pretax special items consisting of $455 million of noncash settlement charges related to transfers of pension plan assets and liabilities to an insurance company through the purchase of group annuity contracts.
(3)	Operating income (loss) for Timberlands includes pretax special items consisting of an $80 million noncash impairment charge related to the previously announced sale of our Montana timberlands and a $48 million gain on sale of our Michigan timberlands.
(4)	Operating income (loss) for Wood Products includes a pretax special item consisting of a $68 million product remediation insurance recovery.
(5)	Operating income (loss) for Unallocated Items includes pretax special items consisting of $35 million of legal charges.

The table below reconciles Adjusted EBITDA for the year ended December 31, 2018:

(millions)	Timberlands		Real Estate & ENR		Wood Products		Unallocated Items		Total
Adjusted EBITDA by Segment:
Net earnings									$	748
Interest expense, net of capitalized interest										375
Income taxes⁽¹⁾										59
Net contribution (charge) to earnings	$	583	$	127	$	838	$	(366)	$	1,182
Non-operating pension and other postretirement benefit costs⁽²⁾		—		—		—		272		272
Interest income and other⁽³⁾		—		(1)		—		(59)		(60)
Operating income (loss)		583		126		838		(153)		1,394
Depreciation, depletion and amortization		319		14		149		4		486
Basis of real estate sold		—		124		—		—		124
Special items included in operating income (loss)⁽⁴⁾		—		—		—		28		28
Adjusted EBITDA	$	902	$	264	$	987	$	(121)	$	2,032


(1)	Income taxes include special items consisting of a $41 million tax benefit related to our pension contribution and a $21 million tax adjustment charge.
(2)	Non-operating pension and other postretirement benefit costs include a pretax special item consisting of a $200 million noncash settlement charge related to our U.S. qualified pension plan lump sum offer.
(3)	Interest income and other includes a pretax special item consisting of a $13 million gain on sale of a nonstrategic asset.
(4)	Operating income (loss) includes a pretax special item consisting of $28 million of environmental remediation expense.

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2019:

(millions)	Timberlands		Real Estate & ENR		Wood Products		Unallocated Items		Total
Adjusted EBITDA by Segment:
Net earnings (loss)									$	(14)
Interest expense, net of capitalized interest										89
Income taxes										1
Net contribution (charge) to earnings	$	53	$	22	$	60	$	(59)	$	76
Non-operating pension and other postretirement benefit costs⁽¹⁾		—		—		—		21		21
Interest income and other		—		—		—		(8)		(8)
Operating income (loss)		53		22		60		(46)		89
Depreciation, depletion and amortization		73		4		50		1		128
Basis of real estate sold		—		11		—		—		11
Special items included in operating income (loss)⁽²⁾		32		—		—		—		32
Adjusted EBITDA	$	158	$	37	$	110	$	(45)	$	260


(1)	Non-operating pension and other postretirement benefit costs include a pretax special item consisting of a $6 million noncash settlement charge related to the transfer of Canadian pension assets and liabilities through purchases of group annuity contracts.
(2)	Operating income (loss) for Timberlands includes pretax special items consisting of an $80 million noncash impairment charge related to the previously announced sale of our Montana timberlands and a $48 million gain on sale of our Michigan timberlands.

The table below reconciles Adjusted EBITDA for the quarter ended September 30, 2019:

(millions)	Timberlands		Real Estate & ENR		Wood Products		Unallocated Items		Total
Adjusted EBITDA by Segment:
Net earnings									$	99
Interest expense, net of capitalized interest										91
Income taxes										3
Net contribution (charge) to earnings	$	72	$	32	$	143	$	(54)	$	193
Non-operating pension and other postretirement benefit costs		—		—		—		15		15
Interest income and other		—		—		—		(6)		(6)
Operating income (loss)		72		32		143		(45)		202
Depreciation, depletion and amortization		82		4		48		1		135
Basis of real estate sold		—		24		—		—		24
Special items included in operating income (loss)⁽¹⁾		—		—		(68)		15		(53)
Adjusted EBITDA	$	154	$	60	$	123	$	(29)	$	308


(1)	Operating income (loss) includes pretax special items consisting of a $68 million product remediation insurance recovery and a $15 million legal charge.

The table below reconciles Adjusted EBITDA for the quarter ended December 31, 2018:

(millions)	Timberlands		Real Estate & ENR		Wood Products		Unallocated Items		Total
Adjusted EBITDA by Segment:
Net earnings (loss)									$	(93)
Interest expense, net of capitalized interest										97
Income taxes⁽¹⁾										(21)
Net contribution (charge) to earnings	$	107	$	44	$	26	$	(194)	$	(17)
Non-operating pension and other postretirement benefit costs⁽²⁾		—		—		—		218		218
Interest income and other⁽³⁾		—		(1)		—		(23)		(24)
Operating income		107		43		26		1		177
Depreciation, depletion and amortization		81		3		40		1		125
Basis of real estate sold		—		44		—		—		44
Adjusted EBITDA	$	188	$	90	$	66	$	2	$	346


(1)	Income taxes include a special item consisting of a $21 million tax adjustment charge.
(2)	Non-operating pension and other postretirement benefit costs include a pretax special item consisting of a $200 million noncash settlement charge related to our U.S. qualified pension plan lump sum offer.
(3)	Interest income and other includes a pretax special item consisting of a $13 million gain on sale of a nonstrategic asset.

RECONCILIATION OF NET EARNINGS BEFORE SPECIAL ITEMS TO NET EARNINGS (LOSS)

We reconcile net earnings before special items to net earnings and net earnings per diluted share before special items to net earnings per diluted share, as those are the most directly comparable U.S. GAAP measures. We believe the measures provide meaningful supplemental information for investors about our operating performance, better facilitate period to period comparisons, and are widely used by analysts, lenders, rating agencies and other interested parties.

The table below reconciles net earnings before special items to net earnings (loss):

	2019	2019	2018	2019	2018
(millions)	Q3	Q4	Q4	Full Year	Full Year
Net earnings (loss)	$99	$(14)	$(93)	$(76)	$748
Early extinguishment of debt charge	—	—	—	9	—
Environmental remediation charge	—	—	—	—	21
Gain on sale of timberlands and other nonstrategic assets	—	(48)	(10)	(48)	(10)
Legal charges	11	—	—	26	—
Pension settlement charges	—	5	152	345	152
Product remediation recoveries, net	(51)	—	—	(51)	—
Restructuring, impairments and other charges	—	80	—	80	—
Tax adjustments	—	—	21	—	(20)
Net earnings before special items	$59	$23	$70	$285	$891

The table below reconciles net earnings per diluted share before special items to net earnings (loss) per diluted share:

	2019	2019	2018	2019	2018
	Q3	Q4	Q4	Full Year	Full Year
Net earnings (loss) per diluted share	$0.13	$(0.02)	$(0.12)	$(0.10)	$0.99
Early extinguishment of debt charge	—	—	—	0.01	—
Environmental remediation charge	—	—	—	—	0.03
Gain on sale of timberlands and other nonstrategic assets	—	(0.07)	(0.01)	(0.07)	(0.01)
Legal charges	0.02	—	—	0.04	—
Pension settlement charges	—	0.01	0.20	0.47	0.20
Product remediation recoveries, net	(0.07)	—	—	(0.07)	—
Restructuring, impairments and other charges	—	0.11	—	0.11	—
Tax adjustments	—	—	0.03	—	(0.03)
Net earnings per diluted share before special items	$0.08	$0.03	$0.10	$0.39	$1.18


Weyerhaeuser Company											Exhibit 99.2
Q4.2019 Analyst Package
Preliminary results (unaudited)

Consolidated Statement of Operations

	Q1		Q2		Q3		Q4					Year-to-Date
in millions	Mar 31, 2019		Jun 30, 2019		Sept 30, 2019		Dec 31, 2019		Dec 31, 2018			Dec 31, 2019		Dec 31, 2018
Net sales	$	1,643	$	1,692	$	1,671	$	1,548	$	1,636		$	6,554	$	7,476
Costs of sales		1,322		1,390		1,399		1,301		1,345			5,412		5,592
Gross margin		321		302		272		247		291			1,142		1,884
Selling expenses		21		21		20		22		22			84		88
General and administrative expenses		89		80		85		94		82			348		318
Charges for integration and restructuring, closures and asset impairments		—		—		—		80		—			80		2
Product remediation recoveries, net		—		—		(68)		—		—			(68)		—
Other operating costs (income), net		37		15		33		(38)		10			47		82
Operating income		174		186		202		89		177			651		1,394
Non-operating pension and other postretirement benefit costs		(470)		(10)		(15)		(21)		(218)			(516)		(272)
Interest income and other		10		6		6		8		24			30		60
Interest expense, net of capitalized interest		(107)		(91)		(91)		(89)		(97)			(378)		(375)
Earnings (loss) before income taxes		(393)		91		102		(13)		(114)			(213)		807
Income taxes		104		37		(3)		(1)		21			137		(59)
Net earnings (loss)	$	(289)	$	128	$	99	$	(14)	$	(93)		$	(76)	$	748


Per Share Information

	Q1		Q2		Q3		Q4					Year-to-Date
	Mar 31, 2019		Jun 30, 2019		Sept 30, 2019		Dec 31, 2019		Dec 31, 2018			Dec 31, 2019		Dec 31, 2018
Earnings (loss) per share, basic and diluted	$	(0.39)	$	0.17	$	0.13	$	(0.02)	$	(0.12)		$	(0.10)	$	0.99
Dividends paid per common share	$	0.34	$	0.34	$	0.34	$	0.34	$	0.34		$	1.36	$	1.32
Weighted average shares outstanding (in thousands):
Basic		746,603		745,486		745,626		745,886		748,694			745,897		754,556
Diluted		746,603		746,232		746,514		745,886		750,025			745,897		756,827
Common shares outstanding at end of period (in thousands)		744,767		744,905		745,071		745,300		746,391			745,300		746,391


Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization (Adjusted EBITDA)

	Q1		Q2		Q3		Q4					Year-to-Date
in millions	Mar 31, 2019		Jun 30, 2019		Sept 30, 2019		Dec 31, 2019		Dec 31, 2018			Dec 31, 2019		Dec 31, 2018
Net earnings (loss)	$	(289)	$	128	$	99	$	(14)	$	(93)		$	(76)	$	748
Non-operating pension and other postretirement benefit costs		470		10		15		21		218			516		272
Interest income and other		(10)		(6)		(6)		(8)		(24)			(30)		(60)
Interest expense, net of capitalized interest		107		91		91		89		97			378		375
Income taxes		(104)		(37)		3		1		(21)			(137)		59
Operating income		174		186		202		89		177			651		1,394
Depreciation, depletion and amortization		123		124		135		128		125			510		486
Basis of real estate sold		48		33		24		11		44			116		124
Special items included in operating income		20		—		(53)		32		—			(1)		28
Adjusted EBITDA⁽¹⁾	$	365	$	343	$	308	$	260	$	346		$	1,276	$	2,032

⁽¹⁾

Adjusted EBITDA is a non-GAAP measure that management uses to evaluate the performance of the company. Adjusted EBITDA, as we define it, is operating income adjusted for depreciation, depletion, amortization, basis of real estate sold, and special items. Our definition of Adjusted EBITDA may be different from similarly titled measures reported by other companies. Adjusted EBITDA should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.




Weyerhaeuser Company											Total Company Statistics
Q4.2019 Analyst Package
Preliminary results (unaudited)

Special Items Included in Net Earnings (Income Tax Affected)

	Q1		Q2		Q3		Q4				Year-to-Date
in millions	Mar 31, 2019		Jun 30, 2019		Sept 30, 2019		Dec 31, 2019		Dec 31, 2018		Dec 31, 2019		Dec 31, 2018
Net earnings (loss)	$	(289)	$	128	$	99	$	(14)	$	(93)	$	(76)	$	748
Early extinguishment of debt charge⁽¹⁾		9		—		—		—		—		9		—
Environmental remediation charge		—		—		—		—		—		—		21
Gain on sale of timberlands and other nonstrategic assets		—		—		—		(48)		(10)		(48)		(10)
Legal charges		15		—		11		—		—		26		—
Pension settlement charges		345		(5)		—		5		152		345		152
Product remediation recoveries, net		—		—		(51)		—		—		(51)		—
Restructuring, impairments and other charges		—		—		—		80		—		80		—
Tax adjustments		—		—		—		—		21		—		(20)
Net earnings before special items⁽²⁾	$	80	$	123	$	59	$	23	$	70	$	285	$	891



	Q1		Q2		Q3		Q4				Year-to-Date
	Mar 31, 2019		Jun 30, 2019		Sept 30, 2019		Dec 31, 2019		Dec 31, 2018		Dec 31, 2019		Dec 31, 2018
Net earnings (loss) per diluted share	$	(0.39)	$	0.17	$	0.13	$	(0.02)	$	(0.12)	$	(0.10)	$	0.99
Early extinguishment of debt charge⁽¹⁾		0.01		—		—		—		—		0.01		—
Environmental remediation charge		—		—		—		—		—		—		0.03
Gain on sale of timberlands and other nonstrategic assets		—		—		—		(0.07)		(0.01)		(0.07)		(0.01)
Legal charges		0.02		—		0.02		—		—		0.04		—
Pension settlement charges		0.47		(0.01)		—		0.01		0.20		0.47		0.20
Product remediation recoveries, net		—		—		(0.07)		—		—		(0.07)		—
Restructuring, impairments and other charges		—		—		—		0.11		—		0.11		—
Tax adjustments		—		—		—		—		0.03		—		(0.03)
Net earnings per diluted share before special items⁽²⁾	$	0.11	$	0.16	$	0.08	$	0.03	$	0.10	$	0.39	$	1.18

⁽¹⁾	During first quarter 2019, we recorded a $12 million pretax ($9 million after-tax) charge related to the early extinguishment of debt. This charge is included in Interest expense, net of capitalized interest in the Consolidated Statement of Operations.
⁽²⁾	Net earnings before special items is a non-GAAP measure that management believes provides helpful context in understanding the company's earnings performance. Net earnings before special items should not be considered in isolation from, and is not intended to represent an alternative to, our GAAP results.


Selected Total Company Items

	Q1		Q2		Q3		Q4				Year-to-Date
in millions	Mar 31, 2019		Jun 30, 2019		Sept 30, 2019		Dec 31, 2019		Dec 31, 2018		Dec 31, 2019		Dec 31, 2018
Pension and postretirement costs:
Pension and postretirement service costs	$	8	$	8	$	8	$	8	$	9	$	32	$	37
Non-operating pension and other postretirement benefit costs		470		10		15		21		218		516		272
Total company pension and postretirement costs	$	478	$	18	$	23	$	29	$	227	$	548	$	309




Weyerhaeuser Company
Q4.2019 Analyst Package
Preliminary results (unaudited)

Consolidated Balance Sheet

in millions	March 31, 2019		June 30, 2019		September 30, 2019		December 31, 2019		December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents	$	259	$	212	$	153	$	139	$	334
Receivables, less discounts and allowances		398		408		368		309		337
Receivables for taxes		163		157		149		98		137
Inventories		451		425		393		416		389
Assets held for sale		—		—		251		140		—
Prepaid expenses and other current assets		141		132		141		147		152
Current restricted financial investments held by variable interest entities		362		362		362		362		253
Total current assets		1,774		1,696		1,817		1,611		1,602
Property and equipment, net		1,917		1,901		1,860		1,969		1,857
Construction in progress		102		134		187		130		136
Timber and timberlands at cost, less depletion		12,586		12,516		12,192		11,929		12,671
Minerals and mineral rights, less depletion		291		288		284		281		294
Deferred tax assets		18		33		31		72		15
Other assets		444		461		461		414		312
Restricted financial investments held by variable interest entities		—		—		—		—		362
Total assets	$	17,132	$	17,029	$	16,832	$	16,406	$	17,249

LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	—	$	—	$	—	$	—	$	500
Current debt (nonrecourse to the company) held by variable interest entities		302		302		—		—		302
Borrowings on line of credit		245		140		440		230		425
Accounts payable		243		271		242		246		222
Accrued liabilities		411		510		487		530		490
Total current liabilities		1,201		1,223		1,169		1,006		1,939
Long-term debt, net		6,156		6,153		6,150		6,147		5,419
Deferred tax liabilities		34		17		25		6		43
Deferred pension and other postretirement benefits		542		515		506		693		527
Other liabilities		398		397		383		377		275
Total liabilities		8,331		8,305		8,233		8,229		8,203
Total equity		8,801		8,724		8,599		8,177		9,046
Total liabilities and equity	$	17,132	$	17,029	$	16,832	$	16,406	$	17,249




Weyerhaeuser Company
Q4.2019 Analyst Package
Preliminary results (unaudited)

Consolidated Statement of Cash Flows

	Q1		Q2		Q3		Q4				Year-to-Date
in millions	Mar 31, 2019		Jun 30, 2019		Sept 30, 2019		Dec 31, 2019		Dec 31, 2018		Dec 31, 2019		Dec 31, 2018
Cash flows from operations:
Net earnings (loss)	$	(289)	$	128	$	99	$	(14)	$	(93)	$	(76)	$	748
Noncash charges (credits) to earnings (loss):
Depreciation, depletion and amortization		123		124		135		128		125		510		486
Basis of real estate sold		48		33		24		11		44		116		124
Deferred income taxes, net		(123)		(43)		2		(5)		(39)		(169)		72
Pension and other postretirement benefits		478		18		23		29		227		548		309
Share-based compensation expense		9		7		7		7		11		30		42
Charges for impairment of assets		—		—		—		80		—		80		1
Net gains on sale of nonstrategic timberlands		—		—		—		(48)		—		(48)		—
Change in:
Receivables, less allowances		(77)		(10)		40		60		117		13		62
Receivables and payables for taxes		(31)		6		7		51		6		33		(103)
Inventories		(60)		28		30		(21)		(5)		(23)		(14)
Prepaid expenses and other current assets		(5)		8		2		1		(11)		6		(18)
Accounts payable and accrued liabilities		(82)		127		(58)		50		(21)		37		(154)
Pension and postretirement benefit contributions and payments		(14)		(13)		(9)		(9)		(26)		(45)		(381)
Other		9		(17)		(10)		(28)		(43)		(46)		(62)
Net cash from operations	$	(14)	$	396	$	292	$	292	$	292	$	966	$	1,112
Cash flows from investing activities:
Capital expenditures for property and equipment	$	(41)	$	(71)	$	(87)	$	(128)	$	(130)	$	(327)	$	(368)
Capital expenditures for timberlands reforestation		(18)		(13)		(11)		(15)		(14)		(57)		(59)
Proceeds from note receivable held by variable interest entities		253		—		—		—		—		253		—
Proceeds from sale of Michigan timberlands		—		—		—		297		—		297		—
Other		18		1		1		1		(32)		21		(13)
Net cash from investing activities	$	212	$	(83)	$	(97)	$	155	$	(176)	$	187	$	(440)
Cash flows from financing activities:
Cash dividends on common shares	$	(254)	$	(253)	$	(253)	$	(253)	$	(254)	$	(1,013)	$	(995)
Net proceeds from issuance of long-term debt		739		—		—		—		—		739		—
Payments of long-term debt		(512)		—		—		—		—		(512)		(62)
Proceeds from borrowings on line of credit		245		140		490		220		425		1,095		425
Payments on line of credit		(425)		(245)		(190)		(430)		—		(1,290)		—
Payments on debt held by variable interest entities		—		—		(302)		—		(209)		(302)		(209)
Proceeds from exercise of stock options		2		2		4		5		—		13		52
Repurchases of common shares		(60)		—		—		—		(93)		(60)		(366)
Other		(8)		(4)		(3)		(3)		1		(18)		(7)
Net cash from financing activities	$	(273)	$	(360)	$	(254)	$	(461)	$	(130)	$	(1,348)	$	(1,162)

Net change in cash and cash equivalents	$	(75)	$	(47)	$	(59)	$	(14)	$	(14)	$	(195)	$	(490)
Cash and cash equivalents at beginning of period		334		259		212		153		348		334		824
Cash and cash equivalents at end of period	$	259	$	212	$	153	$	139	$	334	$	139	$	334

Cash paid (received) during the period for:
Interest, net of amounts capitalized	$	127	$	59	$	124	$	60	$	73	$	370	$	358
Income taxes, net of refunds	$	50	$	1	$	(5)	$	(48)	$	15	$	(2)	$	95




Weyerhaeuser Company											Timberlands Segment
Q4.2019 Analyst Package
Preliminary results (unaudited)

Segment Statement of Operations⁽¹⁾

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Sales to unaffiliated customers	$	431	$	401	$	398	$	388	$	448	$	1,618	$	1,873
Intersegment sales		125		131		125		122		128		503		537
Total net sales		556		532		523		510		576		2,121		2,410
Costs of sales		413		405		429		402		446		1,649		1,735
Gross margin		143		127		94		108		130		472		675
Selling expenses		1		—		—		—		—		1		2
General and administrative expenses		22		25		24		23		24		94		93
Charges for integration and restructuring, closures and asset impairments		—		—		—		80		—		80		—
Other operating income, net		—		—		(2)		(48)		(1)		(50)		(3)
Operating income and Net contribution to earnings	$	120	$	102	$	72	$	53	$	107	$	347	$	583

⁽¹⁾

In January 2019, we changed the way we report our Canadian Forestlands operations, which are primarily operated to supply Weyerhaeuser's Canadian Wood Products manufacturing facilities. As a result, we no longer report related intersegment sales in the Timberlands segment and we now record the minimal associated third-party log sales in the Wood Products segment. These collective transactions did not contribute any earnings to the Timberlands segment. We have conformed prior year presentations with the current year.



Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽²⁾

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Operating income	$	120	$	102	$	72	$	53	$	107	$	347	$	583
Depreciation, depletion and amortization		73		73		82		73		81		301		319
Special items		—		—		—		32		—		32		—
Adjusted EBITDA⁽²⁾	$	193	$	175	$	154	$	158	$	188	$	680	$	902

⁽²⁾	See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.



Segment Special Items Included in Net Contribution to Earnings (Pretax)

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Gain on sale of timberlands and other nonstrategic assets	$	—	$	—	$	—	$	(48)	$	—	$	(48)	$	—
Restructuring, impairments and other charges		—		—		—		80		—		80		—



Selected Segment Items

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Total decrease (increase) in working capital⁽³⁾	$	(24)	$	46	$	2	$	(12)	$	(7)	$	12	$	(9)
Cash spent for capital expenditures	$	(26)	$	(25)	$	(28)	$	(33)	$	(35)	$	(112)	$	(117)


⁽³⁾	Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and log inventory for the Timberlands and Real Estate & ENR segments combined.



Segment Statistics⁽⁴⁾

		Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Third Party	Delivered logs:
Net Sales	West	$	205	$	194	$	172	$	169	$	221	$	740	$	987
(millions)	South		159		156		168		157		153		640		625
	North		29		17		24		22		29		92		99
	Total delivered logs		393		367		364		348		403		1,472		1,711
	Stumpage and pay-as-cut timber		9		10		10		13		20		42		59
	Recreational and other lease revenue		15		15		15		16		15		61		59
	Other revenue		14		9		9		11		10		43		44
	Total	$	431	$	401	$	398	$	388	$	448	$	1,618	$	1,873
Delivered Logs	West	$	106.92	$	104.07	$	99.07	$	102.12	$	112.58	$	103.18	$	125.59
Third Party Sales	South	$	35.35	$	35.45	$	35.03	$	34.71	$	34.38	$	35.13	$	34.66
Realizations (per ton)	North	$	59.68	$	62.10	$	57.35	$	56.95	$	57.27	$	58.80	$	60.55
Delivered Logs	West		1,920		1,864		1,729		1,660		1,958		7,173		7,858
Third Party Sales	South		4,499		4,400		4,795		4,538		4,417		18,232		18,008
Volumes (tons, thousands)	North		494		263		429		372		497		1,558		1,628
Fee Harvest Volumes	West		2,385		2,455		2,183		2,214		2,463		9,237		9,571
(tons, thousands)	South		6,492		6,367		6,802		6,617		6,849		26,278		26,708
	North		627		378		560		477		620		2,042		2,129


⁽⁴⁾	Western logs are primarily transacted in MBF but are converted to ton equivalents for external reporting purposes.




Weyerhaeuser Company							Real Estate, Energy & Natural Resources Segment
Q4.2019 Analyst Package
Preliminary results (unaudited)

Segment Statement of Operations

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Net sales	$	118	$	81	$	69	$	46	$	102	$	314	$	307
Costs of sales		56		39		32		18		52		145		155
Gross margin		62		42		37		28		50		169		152
General and administrative expenses		7		7		6		7		7		27		26
Other operating income, net		—		—		(1)		(1)		—		(2)		—
Operating income		55		35		32		22		43		144		126
Interest income and other		—		—		—		—		1		—		1
Net contribution to earnings	$	55	$	35	$	32	$	22	$	44	$	144	$	127


Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽¹⁾

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Operating income	$	55	$	35	$	32	$	22	$	43	$	144	$	126
Depreciation, depletion and amortization		3		3		4		4		3		14		14
Basis of real estate sold		48		33		24		11		44		116		124
Adjusted EBITDA⁽¹⁾	$	106	$	71	$	60	$	37	$	90	$	274	$	264


⁽¹⁾	See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.



Selected Segment Items

in millions		Q1.2019			Q2.2019			Q3.2019			Q4.2019			Q4.2018			YTD.2019			YTD.2018
Cash spent for capital expenditures		$	—		$	—		$	—		$	—		$	—		$	—		$	—


Segment Statistics

		Q1.2019			Q2.2019			Q3.2019			Q4.2019			Q4.2018			YTD.2019			YTD.2018
Net Sales	Real Estate	$	96		$	59		$	45		$	25		$	81		$	225		$	229
(millions)	Energy and Natural Resources		22			22			24			21			21			89			78
	Total	$	118		$	81		$	69		$	46		$	102		$	314		$	307
Acres Sold	Real Estate		38,834			47,031			18,057			9,394			31,833			113,315			131,575
Price per Acre	Real Estate	$	2,424		$	1,063		$	2,415		$	2,308		$	2,479		$	1,848		$	1,701
Basis as a Percent of Real Estate Net Sales	Real Estate		50	%		56	%		53	%		44	%		54	%		52	%		54	%




Weyerhaeuser Company											Wood Products Segment
Q4.2019 Analyst Package
Preliminary results (unaudited)

Segment Statement of Operations ⁽¹⁾

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018			YTD.2019		YTD.2018
Net sales	$	1,094	$	1,210	$	1,204	$	1,115	$	1,087		$	4,623	$	5,297
Costs of sales		967		1,070		1,067		994		1,003			4,098		4,228
Gross margin		127		140		137		121		84			525		1,069
Selling expenses		19		20		20		21		20			80		81
General and administrative expenses		35		34		35		35		33			139		130
Product remediation recoveries, net		—		—		(68)		—		—			(68)		—
Other operating costs, net		4		5		7		5		5			21		20
Operating income and Net contribution to earnings	$	69	$	81	$	143	$	60	$	26		$	353	$	838

⁽¹⁾

In January 2019, we changed the way we report our Canadian Forestlands operations, which are primarily operated to supply Weyerhaeuser's Canadian Wood Products manufacturing facilities. As a result, we now record the minimal associated third-party log sales in the Wood Products segment. These transactions do not contribute any earnings to the Wood Products segment. We have conformed prior year presentations with the current year.



Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽²⁾

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Operating income	$	69	$	81	$	143	$	60	$	26	$	353	$	838
Depreciation, depletion and amortization		46		47		48		50		40		191		149
Special items		—		—		(68)		—		—		(68)		—
Adjusted EBITDA⁽²⁾	$	115	$	128	$	123	$	110	$	66	$	476	$	987


⁽²⁾	See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.



Segment Special Items Included in Net Contribution to Earnings (Pretax)

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Product remediation recoveries, net	$	—	$	—	$	68	$	—	$	—	$	68	$	—



Selected Segment Items

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Total decrease (increase) in working capital⁽³⁾	$	(155)	$	75	$	32	$	49	$	83	$	1	$	(69)
Cash spent for capital expenditures	$	(30)	$	(53)	$	(65)	$	(109)	$	(107)	$	(257)	$	(306)


⁽³⁾	Represents the change in prepaid assets, accounts receivable, accounts payable, accrued liabilities and inventory for the Wood Products segment.



Segment Statistics

in millions, except for third party sales realizations		Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Structural Lumber	Third party net sales	$	444	$	495	$	487	$	466	$	427	$	1,892	$	2,258
(volumes presented	Third party sales realizations	$	392	$	388	$	389	$	389	$	388	$	389	$	482
in board feet)	Third party sales volumes⁽⁴⁾		1,133		1,274		1,253		1,197		1,099		4,857		4,684
	Production volumes		1,145		1,193		1,189		1,178		1,095		4,705		4,541
Engineered Solid	Third party net sales	$	116	$	134	$	138	$	122	$	121	$	510	$	521
Section	Third party sales realizations	$	2,218	$	2,214	$	2,188	$	2,166	$	2,139	$	2,196	$	2,148
(volumes presented	Third party sales volumes⁽⁴⁾		5.2		6.1		6.3		5.6		5.7		23.2		24.3
in cubic feet)	Production volumes		5.9		6.0		5.3		5.4		5.3		22.6		24.3
Engineered	Third party net sales	$	70	$	86	$	90	$	77	$	75	$	323	$	336
I-joists	Third party sales realizations	$	1,709	$	1,662	$	1,665	$	1,678	$	1,696	$	1,677	$	1,643
(volumes presented	Third party sales volumes⁽⁴⁾		41		52		54		45		44		192		204
in lineal feet)	Production volumes		44		47		48		43		37		182		191
Oriented Strand	Third party net sales	$	160	$	156	$	159	$	157	$	167	$	632	$	891
Board	Third party sales realizations	$	223	$	213	$	214	$	216	$	252	$	217	$	315
(volumes presented	Third party sales volumes⁽⁴⁾		717		733		740		726		665		2,916		2,827
in square feet 3/8")	Production volumes		729		736		747		757		691		2,969		2,837
Softwood Plywood	Third party net sales	$	44	$	44	$	42	$	31	$	42	$	161	$	200
(volumes presented	Third party sales realizations	$	383	$	380	$	346	$	337	$	396	$	363	$	435
in square feet 3/8")	Third party sales volumes⁽⁴⁾		115		115		121		94		104		445		459
	Production volumes		98		104		100		84		96		386		404
Medium Density	Third party net sales	$	38	$	45	$	44	$	39	$	39	$	166	$	177
Fiberboard	Third party sales realizations	$	846	$	833	$	831	$	826	$	835	$	834	$	835
(volumes presented	Third party sales volumes⁽⁴⁾		44		55		53		48		47		200		212
in square feet 3/4")	Production volumes		45		61		47		49		52		202		220


(4)	Volumes include sales of internally produced products and products purchased for resale primarily through our distribution business.




Weyerhaeuser Company											Unallocated Items
Q4.2019 Analyst Package
Preliminary results (unaudited)

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 postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.

Net Charge to Earnings

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Unallocated corporate function and variable compensation expense	$	(19)	$	(12)	$	(19)	$	(30)	$	(28)	$	(80)	$	(84)
Liability classified share-based compensation		(4)		—		(1)		(2)		8		(7)		10
Foreign exchange gain (loss)		(3)		2		(1)		—		5		(2)		3
Elimination of intersegment profit in inventory and LIFO		(5)		(5)		6		(1)		24		(5)		6
Other, net		(39)		(17)		(30)		(13)		(8)		(99)		(88)
Operating income (loss)		(70)		(32)		(45)		(46)		1		(193)		(153)
Non-operating pension and other postretirement benefit costs		(470)		(10)		(15)		(21)		(218)		(516)		(272)
Interest income and other		10		6		6		8		23		30		59
Net charge to earnings	$	(530)	$	(36)	$	(54)	$	(59)	$	(194)	$	(679)	$	(366)


Adjusted Earnings before Interest, Tax, Depreciation, Depletion and Amortization⁽¹⁾

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Operating income (loss)	$	(70)	$	(32)	$	(45)	$	(46)	$	1	$	(193)	$	(153)
Depreciation, depletion and amortization		1		1		1		1		1		4		4
Special items		20		—		15		—	—			35		28
Adjusted EBITDA⁽¹⁾	$	(49)	$	(31)	$	(29)	$	(45)	$	2	$	(154)	$	(121)


⁽¹⁾	See definition of Adjusted EBITDA (a non-GAAP measure) on page 1.



Unallocated Special Items Included in Net Charge to Earnings (Pretax)

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Environmental remediation charge	$	—	$	—	$	—	$	—	$	—	$	—	$	(28)
Legal charges		(20)		—		(15)		—		—		(35)	—
Special items included in operating income (loss)		(20)		—		(15)		—		—		(35)		(28)
Pension settlement charges		(455)		6		—		(6)		(200)		(455)		(200)
Gain on sale of timberlands and other nonstrategic assets		—		—		—		—		13	—		13
Special items included in net charge to earnings	$	(475)	$	6	$	(15)	$	(6)	$	(187)	$	(490)	$	(215)


Unallocated Selected Items

in millions	Q1.2019		Q2.2019		Q3.2019		Q4.2019		Q4.2018		YTD.2019		YTD.2018
Cash spent for capital expenditures	$	(3)	$	(6)	$	(5)	$	(1)	$	(2)	$	(15)	$	(4)