Weyerhaeuser Co Earnings Call Nuggets: WRECO and Incremental Margins
Gail Glazerman – UBS: I guess starting off within WRECO, can you talk a little bit about what sort of mix changes may come with the increasing community counts. It seem like 2012 mix was a little bit weak, would you expect to see that shift a little bit or remain where it was in 2012?
Daniel S. Fulton – President and CEO: The mix is dynamic. Talking about the fourth quarter mix, Gail, we had in the fourth quarter an increased percentage of homes that are reported dwellings, we had talked about that on our last call, but these affordable units come with an overall master plan approval process, that was in the Washington D.C. market. Then we had a shift between third and fourth quarter away from a higher percentage of sales in closings in San Diego to other markets. So we would expect, as we look at the first quarter, as Patty commented, we expect the mix to be about the same. We have adjusted our product in every single market in response to evolving market conditions, and we’ve had significant response in the Inland Empire area of California in developing a new more affordable product, but in other markets we’ve actually moved up market because that’s where the demand has been in the last year to 18 months. As the overall market conditions improve, we will continue to find the opportunities where we have greatest margin potential. With all of these new community openings, we have opportunities to adjust our product mix and so what we will do throughout the year is try to give you some guidance on how we would expect that mix to be changing from quarter to quarter. But as we look from 2012 to 2013, we should not expect a significant mix shift other than this resurgent demand from California can have a positive impact on us as we move throughout the year. It takes some time for those sales to convert to closings, but we have good visibility as we look out in the houses that are in our backlog. We know what those margins should be and I think we’ll just continue to update you on a quarterly basis.
Gail Glazerman – UBS: Log price developments, can you help us understand kind of the developments that you saw in the fourth quarter and currently how much might have been due to weather and how much you think is due to underlying kind supply/demand tightness, because it does seem like in both the west and the south there were weather impacts?