SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549

-------------------

FORM 10-Q

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

For the quarterly period ended April 1, 2000

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 - 3506

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GEORGIA-PACIFIC CORPORATION
(Exact Name of Registrant as Specified in its Charter)

GEORGIA
(State of Incorporation)

93-0432081
(IRS Employer Id. Number)

133 PEACHTREE STREET, N.E., ATLANTA, GEORGIA 30303
(Address of Principal Executive Offices)

(404) 652 - 4000
(Telephone Number of Registrant)

-------------------

Item 1.

Financial Statements

First Quarter
--------------------------

(In millions, except per share amounts)

2000

1999

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Net sales

$    5,421

$     3,409

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Costs and expenses
            Cost of sales, excluding depreciation and
               cost of timber harvested shown below
            Selling and distribution
            Depreciation, depletion, amortization and cost of timber harvested
            General and administrative
            Interest

4,027
364
265
243
145

2,509
131
236
176
111

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Total costs and expenses

5,044

3,163

--------------------------------------------------------------------------------------------------------------------------------------------

Income before income taxes
Provision for income taxes

377
143

246
100

--------------------------------------------------------------------------------------------------------------------------------------------

Net income

$      234

$      146

=================================================================================

Georgia-Pacific Group
Net income
Basic net income per common share
Diluted net income per common share

$      194
$     1.13
$     1.11

$       99
$     0.57
$     0.56

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Average number of shares outstanding:
            Basic
            Diluted

171.8
174.8

172.6
175.4

=================================================================================

The Timber Company
Net income
Basic and diluted net income per common share

$        40
$     0.49

$        47
$     0.54

--------------------------------------------------------------------------------------------------------------------------------------------

Average number of shares outstanding:
            Basic
            Diluted

82.3
82.5

86.4
86.6

=================================================================================

First quarter
----------------------------

(In millions)

2000

1999

-------------------------------------------------------------------------------------------------------------------------------------------

Cash flows from operating activities
      Net income
            Adjustments to reconcile net income to cash
               provided by operations:
      Depreciation, depletion and amortization
      Deferred income taxes
      Gain on disposal of assets, net
      Change in working capital
      Other

$        234



226
(4)
(34)
(154)
(10)

$       146



208
(8)
(5)
(111)
28

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Cash provided by operations

258

258

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Cash flows from investing activities
            Property, plant and equipment investments
            Timber and timberland purchases
            Acquisitions
            Proceeds from sales of assets
            Other

(182)
(59)
(1)
42
(7)

(107)
(27)
(38)
2
13

-------------------------------------------------------------------------------------------------------------------------------------------

Cash used for investing activities

(207)

(157)

-------------------------------------------------------------------------------------------------------------------------------------------

Cash flows from financing activities
            Repayments of long-term debt
            Additions to long-term debt
            Net increase in short-term debt
            Stock repurchases
            Proceeds from option plan exercises
            Cash dividends paid

(20)
-
73
(71)
3
(42)

(59)
46
33
(114)
36
(43)

-------------------------------------------------------------------------------------------------------------------------------------------

Cash used for financing activities

(57)

(101)

-------------------------------------------------------------------------------------------------------------------------------------------

Decrease in cash
            Balance at beginning of period

(6)
25

-
5

-------------------------------------------------------------------------------------------------------------------------------------------

            Balance at end of period

$         19

$          5

=================================================================================

(In millions, except shares and per share amounts)

April 1,
2000

January 1,
2000

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ASSETS
Current assets
            Cash
            Receivables, less allowances of $28 and $25, respectively
            Inventories
            Deferred income tax assets
            Other current assets

$         19
2,511
2,027
139
81

$         25
2,298
2,010
139
87

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Total current assets

4,777

4,559

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Timber and timberlands, net

1,207

1,189

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Property, plant and equipment
            Land, buildings, machinery and equipment, at cost
            Accumulated depreciation

15,977
(8,937)

15,879
(8,800)

---------------------------------------------------------------------------------------------------------------------------------------------

Property, plant and equipment, net

7,040

7,079

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Goodwill, net

2,676

2,697

---------------------------------------------------------------------------------------------------------------------------------------------

Other assets

1,457

1,373

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Total assets

$     17,157

$     16,897

==================================================================================

(In millions, except shares and per share amounts)

April 1,
2000

January 1,
2000

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LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities
            Bank overdrafts, net
            Commercial paper and other short-term notes
            Current portion of long-term debt
            Accounts payable
            Accrued compensation
            Other current liabilities

$        279
2,158
36
894
250
706

$        297
2,067
39
891
334
563

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Total current liabilities

4,323

4,191

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Long-term debt, excluding current portion

4,613

4,621

--------------------------------------------------------------------------------------------------------------------------------------------

Senior deferrable notes

863

863

--------------------------------------------------------------------------------------------------------------------------------------------

Other long-term liabilities

1,831

1,811

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Deferred income tax liabilities

1,532

1,536

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Commitments and contingencies (Note 11)

Shareholders' equity
      Common stock
         Georgia-Pacific Group, par value $.80; 400,000,000
            shares authorized; 192,168,000 and 191,983,000 shares issued
         The Timber Company, par value $.80; 250,000,000
            shares authorized; 93,936,000 and 93,904,000 shares issued
      Treasury stock, at cost
            21,190,000 and 19,776,000 shares of Georgia-Pacific
            Group common stock and 12,128,000 and 11,053,000
            shares of The Timber Company common stock
      Additional paid-in capital
      Retained earnings
      Long-term incentive plan deferred compensation
      Accumulated other comprehensive income

155




(955)



1,517
3,316
(5)
(33)

155




(880)



1,510
3,124
(2)
(32)

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Total shareholders' equity

3,995

3,875

---------------------------------------------------------------------------------------------------------------------------------------------

Total liabilities and shareholders' equity

$     17,157

$     16,897

==================================================================================

First quarter
----------------------------

(In millions)

2000

1999

------------------------------------------------------------------------------------------------------------------------------------------

Net income
      Other comprehensive income (loss) before tax:
      Foreign currency translation adjustments
      Income tax expense related to
         items of other comprehensive income

$      234

(1)

-

$      146

6

(2)

-------------------------------------------------------------------------------------------------------------------------------------------

Comprehensive income

$     233

$      150

=================================================================================

1.

PRINCIPLES OF PRESENTATION. The consolidated financial statements include the accounts of Georgia-Pacific Corporation and subsidiaries (the "Corporation"). All significant intercompany balances and transactions are eliminated in consolidation. The interim financial information included herein is unaudited; however, such information reflects all adjustments which are, in the opinion of management, necessary for a fair presentation of the Corporation's financial position, results of operations, and cash flows for the interim periods. All such adjustments are of a normal, recurring nature. Certain 1999 amounts have been reclassified to conform with the 2000 presentation. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation's annual report on Form 10-K for the fiscal year ended January 1, 2000.

On December 16, 1997, shareholders of the Corporation approved the creation of two classes of common stock intended to reflect separately the performance of the Corporation's manufacturing and timber businesses. The Corporation's manufacturing and timber businesses are referred to hereinafter as the "Georgia-Pacific Group" and "The Timber Company", respectively. The Georgia-Pacific Group's and The Timber Company's combined financial information is presented in Note 13.

2.

PROVISION FOR INCOME TAXES. The effective tax rate used to calculate the provision for income taxes was 38% in 2000 and 41% in 1999. The reduction in the 2000 effective income tax rate resulted principally from increased state tax credits and increased utilization of foreign sales corporation tax benefits, which more than offset nondeductible goodwill amortization expense associated with business acquisitions.

3.

EARNINGS PER SHARE. Basic earnings per share is computed based on net income and the weighted average number of common shares outstanding. Diluted earnings per share reflect the assumed issuance of common shares under long-term incentive stock option and stock purchase plans and pursuant to the terms of the 7.5% Premium Equity Participating Security Units ("PEPS Units") (see Note 8). The computation of diluted earnings per share does not assume conversion or exercise of securities that would have an antidilutive effect on earnings per share. Amounts are computed for each class of common stock based on the separate earnings attributed to each of the respective businesses.

The following table provides earnings and per share data for Georgia-Pacific Group and The Timber Company for 2000 and 1999.

First Quarter
------------------------------------

per share amounts)

2000

1999

-------------------------------------------------------------------------------------------------------------------------------------------

Georgia-Pacific Group

-------------------------------------------------------------------------------------------------------------------------------------------

Basic and diluted income available to
      shareholders (numerator):
         Net income

$             194

$              99

=================================================================================

Shares (denominator):
      Average shares outstanding
Dilutive securities:
      Options
      Employee stock purchase plans

171.8

3.0
-

172.6

2.6
0.2

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      Total assuming conversion

174.8

175.4

=================================================================================

Basic per share amounts
         Net income
Diluted per share amounts
         Net income

$            1.13

$            1.11

$            0.57

$            0.56

=================================================================================

The Timber Company

-------------------------------------------------------------------------------------------------------------------------------------------

Basic and diluted income available to
      shareholders (numerator):
         Net income

$              40

$              47

=================================================================================

Shares (denominator):
      Average shares outstanding
Dilutive securities:
         Options

82.3

0.2

86.4

0.2

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      Total assuming conversion

82.5

86.6

=================================================================================

Basic and diluted per share amounts
         Net income

$            0.49

$            0.54

=================================================================================

4.

SUPPLEMENTAL DISCLOSURES - STATEMENTS OF CASH FLOWS. The cash impact of interest and income taxes is reflected in the table below. The effect of foreign currency exchange rate changes on cash was not material in either period.

First quarter
-----------------------------------------

(In millions)

2000

1999

-------------------------------------------------------------------------------------------------------------------------------------------

Total interest costs
Interest capitalized

$              147
(2)

$             112
(1)

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Interest expense

$              145

$             111

=================================================================================

Interest paid

$               114

$              80

=================================================================================

Income taxes paid, net

$               27

$              73

=================================================================================

5.

INVENTORY VALUATION. Inventories include costs of materials, labor, and plant overhead. The Corporation uses the dollar value pool method for computing LIFO inventories. The major components of inventories were as follows:

(In millions)

April 1,
2000

January 1,
2000

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Raw materials
Finished goods
Supplies
LIFO reserve

$               433
1,404
344
(154)

$               453
1,367
344
(154)

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Total inventories

$             2,027

$             2,010

=================================================================================

6.

DIVESTITURES AND ACQUISITIONS. During the first quarter of 2000, the Corporation sold certain containerboard and packaging assets resulting in a pre-tax gain of $24.4 million ($15.3 million after tax, or $0.09 diluted earnings per Georgia-Pacific Group share).

Also during the first quarter of 2000, the Corporation contributed certain containerboard and packaging assets with a net book value of $34 million to a joint venture. In exchange for these assets, the Corporation will retain a 58% interest in the joint venture. This investment in the joint venture is accounted for under the equity method.

At the end of the first quarter of 1999, the Corporation completed the acquisition of a packaging plant and four treated lumber facilities for a total consideration of approximately $38 million in cash. The results of operations of the packaging plant and treated lumber facilities were consolidated with those of the Corporation beginning April 4, 1999. The Corporation has accounted for these business combinations using the purchase method to record a new cost basis for assets acquired and liabilities assumed.

At the end of the second quarter of 1999, the Corporation, through its wholly owned subsidiary Atlanta Acquisition Corp., completed a tender offer for all the outstanding shares of common stock of Unisource Worldwide, Inc. ("Unisource"), the largest independent marketer and distributor of printing and imaging paper and supplies in North America, and acquired 90.7% of the then-outstanding shares of Unisource. On July 6, 1999, Atlanta Acquisition Corp. was merged with and into Unisource and, by virtue of such merger, shares of Unisource that were not tendered to the Corporation (other than shares held by Unisource and the Corporation and its subsidiaries) were converted into the right to receive $12.00 per

9

<PAGE>

Unisource share in cash, subject to dissenters' rights. The Corporation is paying for such untendered shares as they are delivered to the exchange agent for cancellation. Through April 1, 2000, the Corporation has paid approximately $830 million for all Unisource shares, $1 million of which was paid during the first quarter of 2000. In addition, the Corporation assumed $785 million of Unisource debt in the acquisition.

Unisource's results of operations were consolidated with those of the Corporation beginning July 4, 1999. The Corporation has accounted for this transaction using the purchase method to record a new cost basis for assets acquired and liabilities assumed. The allocation of the purchase price and acquisition costs to the assets acquired and liabilities assumed is preliminary as of April 1, 2000, and is subject to change pending finalization of studies of fair value and the finalization of management's plans to consolidate or close additional distribution centers. The difference between the purchase price and the fair market value of the assets acquired and liabilities assumed was recorded as goodwill and is being amortized over 40 years. The preliminary allocation of the purchase price of the acquisition is summarized as follows:

In millions

===================================================================

Current assets
Property, plant and equipment
Other noncurrent assets
Goodwill
Liabilities

$                       1,226
230
27
766
(1,419)

------------------------------------------------------------------------------------------------------------------

Net cash paid for Unisource

$                         830

===================================================================

Quarter ended
---------------------------------------------------------------------

In millions, except per share amounts

April 1,
2000

April 3,
1999

=================================================================================

Actual
--------------------------------

Pro forma
---------------------------------

Georgia-Pacific Corporation:
      Net sales
      Net income
Georgia-Pacific Group data:
      Net sales
      Net income
      Basic earnings per share
      Diluted earnings per share

$                     5,421
234

5,383
194
1.13
1.11

$                     4,926
141

4,871
94
0.55
0.54

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In millions

Balance
January 1,
2000

Additions

Usage

Balance
April 1,
2000

=====================================================================================

Employee separation
Facility closing costs and asset impairments

$            43
14

$                -
-

$           (1)
(3)

$             42
11

---------------------------------------------------------------------------------------------------------------------------------------------------

Total

$            57

$                -

$           (4)

$             53

=====================================================================================

In millions

===================================================================

Current assets
Property, plant and equipment
Goodwill
Liabilities

$                           99
633
288
(265)

------------------------------------------------------------------------------------------------------------------

Net cash distribution to Wisconsin Tissue

$                         755

===================================================================

The Corporation has completed an organizational restructuring of the sales, marketing, administrative and manufacturing support activities for its tissue business, which resulted in the elimination of approximately 300 salaried and hourly positions. The Corporation reserved approximately $7 million in 1999 for termination and relocation costs of Wisconsin Tissue employees. This $7 million liability was included as part of the purchase price of the Wisconsin Tissue assets. In addition, the Corporation recorded liabilities totaling approximately $2 million for the termination and relocation of employees of the Corporation, which were charged to earnings in 1999. As a result of these programs, approximately 80 employees were terminated and approximately $2 million of the termination and relocation reserve was used in 1999. During the first quarter of 2000, approximately 60 more employees were terminated and an additional $2 million of the termination and relocation reserve was used leaving a total reserve of approximately $5 million. The Corporation has not yet finalized its plans for manufacturing and distribution activities. Finalization of these plans may result in additional liabilities recorded as part of the purchase price or charges to earnings.

7.

DEBT. At April 1, 2000, the Corporation's debt was $7.09 billion, $6.12 billion of which was allocated to the Georgia-Pacific Group and $967 million of which was allocated to The Timber Company.

The Corporation has extended its $750 million accounts receivable secured borrowing program through October 2000. Additionally, the Corporation retained former Unisource agreements to sell up to $150 million of certain qualifying U.S. accounts receivable and up to CN$70 million of certain eligible Canadian accounts receivable. The U.S. agreement expires in May 2001 and the Canadian agreement expires in May 2004. At April 1, 2000, approximately $948 million was outstanding under the Corporation's accounts receivable secured borrowing programs in the aggregate. The receivables outstanding under these programs and the corresponding debt are included as both "Receivables" and "Commercial paper and other short-term notes", respectively, on the accompanying balance sheets. All programs are accounted for as secured borrowings. As collections reduce previously pledged interests, new receivables may be pledged.

On April 4, 2000, approximately $10 million of taxable industrial revenue bonds, due July 1, 2029, were replaced by $10 million fixed rate industrial revenue bonds issued on April 1, 2000.

During 1999, the Corporation increased the amount of its unsecured revolving credit facility from $1.5 billion to $2.0 billion. This unsecured revolving credit facility is used for direct borrowings and as support for commercial paper and other short-term borrowings. As of April 1, 2000, $1,054 million of committed credit was available in excess of all short-term borrowings outstanding under or supported by the facility. The revolving credit agreement contains certain restrictive covenants, including a maximum leverage ratio (funded indebtedness, including senior deferrable notes, to earnings before interest, taxes, depreciation and amortization ("EBITDA")) of 4.5 to 1.0, which is to be maintained throughout the term of the credit agreement. As of April 1, 2000, the leverage ratio was 2.6 to 1.0.

Also during 1999, the Board of Directors increased the corporate target debt level under which management can purchase shares of Georgia-Pacific Group and The Timber Company common stock on the open market from $5.75 billion to $6.8 billion. In addition, the Board of Directors increased the Georgia-Pacific Group's target debt level from $4.75 billion to $5.8 billion. The Timber Company's target debt level remains at $1.0 billion. In February 2000, the Board of Directors approved a waiver of

these debt limits to allow the Georgia-Pacific Group to purchase up to $100 million of its common shares in each of February, March and April 2000 even though its target debt level and the Corporation's exceeded $5.8 and $6.8 billion, respectively.

Also during 1999, the Corporation registered for sale up to $2.975 billion of debt and equity securities under a shelf registration statement filed with the Securities and Exchange Commission. The Corporation registered $1.725 billion under such registration statement related to the PEPS Units ($862.5 million of which was received on July 7, 1999 in exchange for senior deferrable notes, and $862.5 million of Georgia-Pacific Group stock will be issued upon exercise of the purchase contracts) (see Note 8). The $862.5 million of cash (less expenses) raised in this sale of the PEPS Units was used to pay for the acquisition of Unisource. In addition, the Corporation registered $500 million of 7.75% Debentures Due November 15, 2029 under this registration statement in connection with the formation of Georgia-Pacific Tissue.

8.

SENIOR DEFERRABLE NOTES. On July 7, 1999, the Corporation issued 17,250,000 of 7.5% PEPS Units for $862.5 million. Each PEPS Unit had an issue price of $50 and consists of a contract to purchase shares of Georgia-Pacific Group stock on or prior to August 16, 2002 and a senior deferrable note of the Georgia-Pacific Group due August 16, 2004. Each purchase contract yields interest of 0.35% per year, paid quarterly, on the $50 stated amount of the PEPS Unit. Each senior deferrable note yields interest of 7.15% per year, paid quarterly, until August 16, 2002. On August 16, 2002, following a remarketing of the senior deferrable notes, the interest rate will be reset at a rate that will be equal to or greater than 7.15%. The liability related to the PEPS Units is classified as "Senior deferrable notes" on the accompanying balance sheets and is not included in the debt amount for purposes of determining the corporate and Georgia-Pacific Group debt targets. The senior deferrable notes and related interest expense are allocated specifically to the Georgia-Pacific Group.

9.

STOCK SPLIT. On May 4, 1999, the Board of Directors declared a two-for-one split of Georgia-Pacific Group's common stock in the form of a special dividend to shareholders of record on May 14, 1999. The special dividend was paid as one share of Georgia-Pacific Group common stock for each share of Georgia-Pacific Group outstanding on June 3, 1999. A total of 95,126,911 additional shares were issued in conjunction with the stock split. The Georgia-Pacific Group's par value of $0.80 remained unchanged. As a result, $76 million of stockholders' equity was reclassified from Additional paid-in capital to Common stock. All historical share and per share amounts have been restated to reflect retroactively the stock split.

10.

SHARE REPURCHASES. During the first quarter of 2000, Georgia-Pacific Group purchased on the open market approximately 1,414,000 shares of Georgia-Pacific Group common stock at an aggregate price of approximately $50 million ($35.48 average per share), all of which were held as treasury stock at April 1, 2000. The Board of Directors approved the Corporation's purchase of Georgia-Pacific Group common stock despite being above target debt levels since the Corporation expects its cash flows during the next quarter to reduce debt levels below the target (see Note 7). During the first quarter of 2000, The Timber Company purchased on the open market approximately 1,075,000 shares of The Timber Company common stock at an aggregate price of approximately $25 million ($22.77 average per share). Of these repurchased shares, approximately 899,000 shares of The Timber Company common stock were held as treasury stock and approximately 176,000 shares were purchased during the first quarter of 2000 and settled after April 1, 2000.

During the first quarter of 1999, Georgia-Pacific Group purchased on the open market approximately 2,540,000 shares of Georgia-Pacific Group common stock at an aggregate price of approximately $91 million ($35.85 average per share). Of these share repurchases, approximately 2,340,000 shares of Georgia-Pacific Group common stock were held as treasury stock and 200,000 shares were purchased during the first quarter of 1999 and settled after April 3, 1999. During the first quarter of 1999, The Timber Company purchased on the open market 1,474,000 shares of The Timber Company common stock at an aggregate price of $32 million ($22.10 average per share). Of these repurchased shares, approximately 1,410,000 shares of The Timber Company common stock were held as treasury stock and approximately 64,000 shares were purchased during the first quarter of 1999 and settled after April 3, 1999.

11.

COMMITMENTS AND CONTINGENCIES. The Corporation is a party to various legal proceedings incidental to its business and is subject to a variety of environmental and pollution control laws and regulations in all jurisdictions in which it operates. As is the case with other companies in similar industries, the Corporation faces exposure from actual or potential claims and legal proceedings involving environmental matters. Liability insurance in effect during the last several years provides only very limited coverage for environmental matters.

The Corporation is involved in environmental remediation activities at approximately 175 sites, both owned by the Corporation and owned by others, where it has been notified that it is or may be a potentially responsible party under the Comprehensive Environmental Response, Compensation and Liability Act or similar state "superfund" laws. Of the known sites in which it is involved, the Corporation estimates that approximately 49% are being investigated, approximately 27% are being remediated and approximately 24% are being monitored (an activity that occurs after either site investigation or remediation has been completed). The ultimate costs to the Corporation for the investigation, remediation and monitoring of many of these sites cannot be predicted with certainty, due to the often unknown magnitude of the pollution or the necessary cleanup, the varying costs of alternative cleanup methods, the amount of time necessary to accomplish such cleanups, the evolving nature of cleanup technologies and governmental regulations, and the inability to determine the Corporation's share of multiparty cleanups or the extent to which contribution will be available from other parties. The Corporation has established reserves for environmental remediation costs for these sites in amounts that it believes are probable and reasonably estimable. Based on analysis of currently available information and previous experience with respect to the cleanup of hazardous substances, the Corporation believes it is reasonably possible that costs associated with these sites may exceed current reserves by amounts that may prove insignificant or that could range, in the aggregate, up to approximately $57 million. This estimate of the range of reasonably possible additional costs is less certain than the estimates upon which reserves are based, and in order to establish the upper limit of such range, assumptions least favorable to the Corporation among the range of reasonably possible outcomes were used. In estimating both its current reserve for environmental remediation and the possible range of additional costs, the Corporation has not assumed it will bear the entire cost of remediation of every site to the exclusion of other known potentially responsible parties who may be jointly and severally liable. The ability of other potentially responsible parties to participate has been taken into account, based generally on the parties' financial condition and probable contribution on a per site basis.

The Corporation and many other companies are defendants in suits brought in various courts around the nation by plaintiffs who allege that they have suffered personal injury as a result of exposure to asbestos-containing products. These suits allege a variety of lung and other diseases based on alleged exposure to products previously manufactured by the Corporation. In many cases, the plaintiffs are unable to demonstrate that they have suffered any compensable loss as a result of such exposure, or that any injuries they have incurred in fact resulted from exposure to the Corporation's products.

The Corporation generally settles asbestos cases for amounts it considers reasonable given the facts and circumstances of each case. The amounts it has paid to date to defend and settle these cases have been substantially covered by product liability insurance. The Corporation is currently defending claims of approximately 43,700 such plaintiffs as of April 1, 2000 and anticipates that additional suits will be filed against it over the next several years. The Corporation has insurance available in amounts that it believes are adequate to cover substantially all of the reasonably foreseeable damages and settlement amounts arising out of claims and suits currently pending. The Corporation has further insurance coverage available for the disposition of suits that may be filed against it in the future, but there can be no assurance that the amounts of such insurance will be adequate to cover all future claims. The Corporation has established reserves for liabilities and legal defense costs it believes are probable and reasonably estimable with respect to pending suits and claims, and has also established a receivable for expected insurance recoveries.

On May 6, 1998, a lawsuit was filed in state court in Columbus, Ohio, against the Corporation and Georgia-Pacific Resins, Inc. (GPR), a wholly owned subsidiary of the Corporation. The lawsuit was filed by eight plaintiffs who seek to represent a class of individuals who at any time from 1985 to the present lived, worked, resided, owned, frequented or otherwise occupied property located within a three-mile

radius of the GPR's resins manufacturing operations in Columbus, Ohio. The lawsuit alleges that the individual plaintiffs and putative class members have suffered personal injuries and/or property damage because of (i) alleged "continuing and long-term releases and threats of releases of noxious fumes, odors and harmful chemicals, including hazardous substances" from GPR's operations and/or (ii) a September 10, 1997 explosion at the Columbus facility and alleged release of hazardous material resulting from that explosion. Virtually all activity in this case has been stayed pending a decision on a motion by plaintiffs for reconsideration of a case management order issued by the court. The Corporation has denied the material allegations of this lawsuit. While it is premature to evaluate the claims asserted in this lawsuit, the Corporation believes it has meritorious defenses. Prior to the filing of the lawsuit, the Corporation had received a number of explosion-related claims from nearby residents and businesses. These claims were for property damage, personal injury and business interruption and were being reviewed and resolved on a case-by-case basis. On January 12, 2000, five plaintiffs, including one of the class representatives in the state class action, filed a lawsuit against the Corporation and GPR pursuant to the citizen suit provisions of the federal Clean Air Act and the Community Right-to-Know law. This suit alleges violations of these federal laws and certain state laws regarding the form and substance of the defendants' reporting of emissions and violations of permitting requirements under certain regulations issued under the Clean Air Act. This suit seeks civil penalties of $25,000 per day, per violation, an injunction to force the defendants to comply with these laws and regulations, and other relief. The defendants have denied the material allegations of the complaint and have sought a ruling from a federal appeals court to the effect that the regulations under which the alleged violations of the Clean Air Act are premised are not applicable to them. While it is premature to completely evaluate these claims, the Corporation believes it has meritorious defenses.

In May 1997, the Corporation and nine other companies were named as defendants in a lawsuit brought by the Attorney General of the State of Florida alleging that the defendants engaged in a conspiracy to fix the prices of sanitary commercial paper products, such as towels and napkins, in violation of various federal and state laws. Shortly after the filing of this suit, approximately 55 similar suits were filed by private plaintiffs in federal courts in California, Florida, Georgia and Wisconsin, and in the state courts of California, Wisconsin, Minnesota and Tennessee. On July 28, 1999, the Corporation and the Attorney General of the State of Florida entered into a Settlement Agreement pursuant to which the State has dismissed its claims against the Corporation. The Agreement provides that the Corporation continues to deny that there is any evidence that it engaged in the alleged price-fixing conspiracy. In addition, the Corporation agreed to donate an immaterial amount of real property to the State of Florida. As part of the formation of the joint venture with Chesapeake described in Note 6, the Corporation and Wisconsin Tissue assigned, and Georgia-Pacific Tissue agreed to assume, the liabilities of both companies in connection with these antitrust cases. The Corporation and Wisconsin Tissue have denied that they have engaged in any of the illegal conduct alleged in these cases and intend to defend themselves vigorously.

Although the ultimate outcome of these environmental matters and legal proceedings cannot be determined with certainty, based on presently available information, management believes that adequate reserves have been established for probable losses with respect thereto. Management further believes that the ultimate outcome of such environmental matters and legal proceedings could be material to operating results in any given quarter or year but will not have a material adverse effect on the long-term results of operations, liquidity or consolidated financial position of the Corporation.

12

OPERATING SEGMENT INFORMATION. The Corporation has six reportable operating segments: building products, building products distribution, timber, containerboard and packaging, pulp and paper, and paper distribution. The following represents selected operating data for each reportable segment for the three months ended April 1, 2000 and April 3, 1999.

(Dollar amounts
in millions)

First Quarter 2000

First Quarter 1999

------------------------------------------------------------------------------------------------------------------------------------------------

NET SALES TO UNAFFILIATED CUSTOMERS
Building products
Building products distribution
Timber
Containerboard and packaging
Pulp and paper
Paper distribution
Other

$        944
1,145
38
628
934
1,731
1

17%
21
1
12
17
32
-

$        890
1,098
55
523
842
-
1

26%
32
2
15
25
-
-

------------------------------------------------------------------------------------------------------------------------------------------------

Total net sales to
unaffiliated customers

$      5,421

100%

$      3,409

100%

====================================================================================

INTERSEGMENT SALES
Building products
Building products distribution
Timber
Containerboard and packaging
Pulp and paper
Paper distribution
Other*

$        544
3
64
19
12
28
(670)

$        550
2
86
14
6
-
(658)

------------------------------------------------------------------------------------------------------------------------------------------------

Total intersegment sales

$           -

$           -

====================================================================================

TOTAL NET SALES
Building products
Building productions distribution
Timber
Containerboard and packaging
Pulp and paper
Paper distribution
Other*

$      1,488
1,148
102
647
946
1,759
(669)

27%
21
2
12
18
32
(12)

$      1,440
1,100
141
537
848
-
(657)

42%
32
4
16
25
-
(19)

------------------------------------------------------------------------------------------------------------------------------------------------

Total net sales

$      5,421

100%

$      3,409

100%

====================================================================================

(Dollar amounts
in millions)

First Quarter 2000

First Quarter 1999

------------------------------------------------------------------------------------------------------------------------------------------------

OPERATING PROFITS
Building products
Building products distribution
Timber
Containerboard and packaging
Pulp and paper
Paper distribution
Other

$        191
14
75
131
129
38
(56)

37%
3
14
25
25
7
(11)

$        248
18
96
35
13
-
(53)

69%
5
27
10
4
-
(15)

------------------------------------------------------------------------------------------------------------------------------------------------

Total operating profits

Interest expense
Provision for income taxes

522

(145)
(143)

100%
===

357

(111)
(100)

100%
===

------------------------------------------------------------------------------------------------------------------------------------------------

Net income

$        234

$        146

====================================================================================

13.

SELECTED FINANCIAL DATA. The following combined financial information includes the accounts of Georgia-Pacific Group. All significant intragroup balances and transactions are eliminated in combination. Transactions with The Timber Company are not eliminated.

First Quarter
--------------------------------------

(In millions, except per share amounts)

2000

1999

--------------------------------------------------------------------------------------------------------------------------------------------

Net sales

$          5,383

$          3,354

--------------------------------------------------------------------------------------------------------------------------------------------

Costs and expenses
         Cost of sales, excluding depreciation, amortization and
            cost of timber harvested shown below
                The Timber Company
                Third parties

19
4,016

20
2,485

--------------------------------------------------------------------------------------------------------------------------------------------

         Total cost of sales
         Selling and distribution
         Depreciation, amortization and cost of timber harvested
            The Timber Company
            Third parties

4,035
364

45
258

2,505
131

66
225

--------------------------------------------------------------------------------------------------------------------------------------------

         Total depreciation and cost of
            timber harvested
         General and administrative
         Interest

303
234
135

291
166
93

--------------------------------------------------------------------------------------------------------------------------------------------

Total costs and expenses

5,071

3,186

--------------------------------------------------------------------------------------------------------------------------------------------

Income before income taxes
Provision for income taxes

312
118

168
69

--------------------------------------------------------------------------------------------------------------------------------------------

Net income

$            194

$             99

=================================================================================

Basic per common share:
         Net income
Diluted per common share:
         Net income

$           1.13

$           1.11

$           0.57

$           0.56

=================================================================================

Average number of shares outstanding:
           Basic
           Diluted

171.8
174.8

172.6
175.4

=================================================================================

First Quarter
--------------------------------------

(In millions)

2000

1999

--------------------------------------------------------------------------------------------------------------------------------------------

Cash flows from operating activities
      Net income
         Adjustments to reconcile net income to cash
            provided by operations:
            Depreciation and amortization
            Cost of timber harvested - The Timber Company
            Cost of timber harvested - Third Parties
            Change in working capital
            Change in other assets and other long-term liabilities
            Other

$           194


219
45
39
(173)
(53)
(29)

$             99


197
66
28
(112)
(2)
(9)

--------------------------------------------------------------------------------------------------------------------------------------------

Cash provided by operations

242

267

--------------------------------------------------------------------------------------------------------------------------------------------

Cash flows from investing activities
      Property, plant and equipment investments
      Timber purchases from The Timber Company
      Timber contract purchases from third parties
      Acquisitions
      Proceeds from sales of assets
      Other

(181)
(45)
(46)
(1)
38
(1)

(107)
(61)
(19)
(38)
2
13

--------------------------------------------------------------------------------------------------------------------------------------------

Cash used for investing activities

(236)

(210)

--------------------------------------------------------------------------------------------------------------------------------------------

Cash flows from financing activities
      Additions to debt
      Common stock repurchased
      Cash dividends paid
      Other

65
(50)
(21)
(6)

14
(83)
(21)
33

--------------------------------------------------------------------------------------------------------------------------------------------

Cash used for financing activities

(12)

(57)

--------------------------------------------------------------------------------------------------------------------------------------------

Decrease in cash
      Balance at beginning of period

(6)
25

-
5

--------------------------------------------------------------------------------------------------------------------------------------------

Balance at end of period

$             19

$              5

=================================================================================

(In millions)

April 1,
2000

January 1,
2000

-------------------------------------------------------------------------------------------------------------------------------------------

ASSETS

Current assets
      Cash
      Receivables, less allowances of $28 and $25, respectively
      Inventories
      Deferred income tax assets
      Other current assets

$             19
2,506
2,024
139
78

$               25
2,296
2,007
139
69

-------------------------------------------------------------------------------------------------------------------------------------------

Total current assets

4,766

4,536

-------------------------------------------------------------------------------------------------------------------------------------------

Timber contracts

72

66

-------------------------------------------------------------------------------------------------------------------------------------------

Property, plant and equipment
      Land, building, machinery and equipment, at cost
      Accumulated depreciation

15,915
(8,893)

15,816
(8,756)

-------------------------------------------------------------------------------------------------------------------------------------------

Property, plant and equipment, net

7,022

7,060

-------------------------------------------------------------------------------------------------------------------------------------------

Goodwill, net

2,676

2,697

-------------------------------------------------------------------------------------------------------------------------------------------

Other assets

1,105

1,021

-------------------------------------------------------------------------------------------------------------------------------------------

Total assets

$         15,641

$           15,380

=================================================================================

(In millions)

April 1,
2000

January 1,
2000

-------------------------------------------------------------------------------------------------------------------------------------------

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
      Short-term debt
      Accounts payable
      Accrued compensation
      Other current liabilities

$           2,133
890
247
670

$            2,071
886
327
537

-------------------------------------------------------------------------------------------------------------------------------------------

Total current liabilities

3,940

3,821

-------------------------------------------------------------------------------------------------------------------------------------------

Long-term debt, excluding current portion

3,986

3,983

-------------------------------------------------------------------------------------------------------------------------------------------

Senior deferrable notes

863

863

-------------------------------------------------------------------------------------------------------------------------------------------

Other long-term liabilities

1,823

1,803

-------------------------------------------------------------------------------------------------------------------------------------------

Deferred income tax liabilities

1,154

1,160

-------------------------------------------------------------------------------------------------------------------------------------------

Commitments and contingencies (Note 11)

Shareholders' equity

3,875

3,750

-------------------------------------------------------------------------------------------------------------------------------------------

Total liabilities and shareholders' equity

$         15,641

$           15,380

=================================================================================

First Quarter
--------------------------------------

(In millions)

2000

1999

-------------------------------------------------------------------------------------------------------------------------------------------

Net income
      Other comprehensive income (loss) before tax:
         Foreign currency translation adjustments
      Income tax expense related to
         items of other comprehensive income

$             194

(1)

-

$            99

6

(2)

-------------------------------------------------------------------------------------------------------------------------------------------

Comprehensive income

$             193

$           103

=================================================================================

First Quarter
--------------------------------------

(In millions, except per share amounts)

2000

1999

-------------------------------------------------------------------------------------------------------------------------------------------

Net sales
      Timber-Georgia-Pacific Group
      Timber-third parties
         Delivered
         Stumpage
      Other

$             64

8
28
2

$             86

13
40
2

-------------------------------------------------------------------------------------------------------------------------------------------

Total net sales

102

141

-------------------------------------------------------------------------------------------------------------------------------------------

Costs and expenses
      Cost of sales, excluding depreciation and
         depletion
      Depreciation and depletion
      General and administrative
      Interest

11
7
9
10

24
11
10
18

---------------------------------------------------------------------------------------------------------------------------------------------

Total costs and expenses

37

63

---------------------------------------------------------------------------------------------------------------------------------------------

Income before income taxes
Provision for income taxes

65
25

78
31

---------------------------------------------------------------------------------------------------------------------------------------------

Net income

$             40

$             47

==================================================================================

Basic and diluted per share:
      Net income

$           0.49

$           0.54

==================================================================================

Average number of shares outstanding:
      Basic
      Diluted

82.3
82.5

86.4
86.6

==================================================================================

First Quarter
--------------------------------------

(In millions)

2000

1999

-------------------------------------------------------------------------------------------------------------------------------------------

Cash flows from operations
      Net income
      Adjustments to reconcile net income to cash
         provided by operations:
         Depreciation and depletion
         Deferred income taxes
         Gain on sales of assets
         Change in other assets and other liabilities

$            40


7
2
(10)
22

$           47


11
1
(4)
(3)

-------------------------------------------------------------------------------------------------------------------------------------------

Cash provided by operations

61

52

-------------------------------------------------------------------------------------------------------------------------------------------

Cash flows from investing activities
      Property, plant and equipment investments
      Timber and timberlands purchases
      Proceeds from sales of assets
      Other

(1)
(13)
4
(6)

-
(8)
-
-

-------------------------------------------------------------------------------------------------------------------------------------------

Cash used for investing activities

(16)

(8)

-------------------------------------------------------------------------------------------------------------------------------------------

Cash flows from financing activities
      Share repurchases
      Proceeds from option plan exercises
      (Repayments of) additions to long-term debt
      Cash dividends paid

(21)
-
(3)
(21)

(31)
3
6
(22)

-------------------------------------------------------------------------------------------------------------------------------------------

Cash used for financing activities

(45)

(44)

-------------------------------------------------------------------------------------------------------------------------------------------

Increase in cash
      Balance at beginning of period

-
-

-
-

-------------------------------------------------------------------------------------------------------------------------------------------

      Balance at end of period

$             -

$            -

=================================================================================

(In millions)

April 1,
2000

January 1,
2000

-------------------------------------------------------------------------------------------------------------------------------------------

ASSETS
Timber and timberlands
         Timberlands
         Fee timber
         Reforestation
         Other

$             318
520
270
31

$              318
523
259
27

-------------------------------------------------------------------------------------------------------------------------------------------

Total timber and timberlands

1,139

1,127

-------------------------------------------------------------------------------------------------------------------------------------------

Property, plant and equipment, less accumulated
         depreciation of $45 and $44, respectively

18

19

-------------------------------------------------------------------------------------------------------------------------------------------

Note receivable

350

350

-------------------------------------------------------------------------------------------------------------------------------------------

Other assets

13

25

-------------------------------------------------------------------------------------------------------------------------------------------

Total assets

$           1,520

$            1,521

=================================================================================

Debt

$             967

$              970

-------------------------------------------------------------------------------------------------------------------------------------------

Other liabilities

55

50

-------------------------------------------------------------------------------------------------------------------------------------------

Deferred income tax liabilities

378

376

-------------------------------------------------------------------------------------------------------------------------------------------

Total liabilities

1,400

1,396

-------------------------------------------------------------------------------------------------------------------------------------------

Commitments and contingencies (Note 11)

Shareholders' equity

120

125

-------------------------------------------------------------------------------------------------------------------------------------------

Total liabilities and shareholders' equity

$           1,520

$            1,521

=================================================================================

(In millions)
---------------

2000
-------

2001
-------

2002
-------

2003
-------

Debt
Commercial paper and other short-term notes
      Average interest rates
Notes and debentures
      Average interest rates
Revenue bonds
      Average interest rates
Capital lease
      Average interest rates
Other loans
      Average interest rates
Senior deferrable notes
      Average interest rates
Notional principal amount of interest rate exchange agreements
      Average interest rate paid (fixed)
      Average interest rate received (variable)

-
-
-
-
$              34
4.8%
$                2
10.1%
-
-
-
-

$            177
7.7%
6.2%

-
-
-
-
$              6
4.1%
$              2
10.0%
-
-
-
-

-
-
-

-
-
$            300
10.0%
$              73
4.0%
$                1
10.1%
-
-
$            863
7.2%

$            131
6.0%
6.0%

-
-
$           300
6.2%
-
-
$               1
10.2%
$             13
6.7%
-
-

$          300
5.9%
6.4%

(In millions)
---------------

2004
-------

Thereafter
-------------

Total
-------

Fair value April 1, 2000
---------------

Debt
Commercial paper and other short-term notes
      Average interest rates
Notes and debentures
      Average interest rates
Revenue bonds
      Average interest rates
Capital leases
      Average interest rates
Other loans
      Average interest rates
Senior deferrable notes
      Average interest rates
Notional principal amount of interest rate exchange agreements
      Average interest rate paid (fixed)
      Average interest rate received (variable)

-
-
-
-
$              33
4.1%
$                1
10.2%
-
-
-
-

-
-
-

$         2,158
6.5%
$         3,382
8.4%
$            517
5.5%
$               7
10.3%
-
-
-
-

-
-
-

$          2,158
6.5%
$          3,982
8.4%
$             663
5.2%
$               14
10.1%
$               13
6.7%
$             863
7.2%

$             608
6.4%
6.2%

$         2,158
6.5%
$         3,959
8.4%
$            544
5.2%
$             15
7.9%
$              14
7.8%
$            861
7.8%

$                4
6.4%
6.2%

Item 1.

Legal Proceedings

The information contained in Note 11 "Commitments and Contingencies" of the Notes to Consolidated Financial Statements filed as part of this Quarterly Report on Form 10-Q is incorporated herein by reference.

The Grand Rapids gypsum plants have received several Letters (notices) of Violation from the Michigan Department of Environmental Quality (DEQ) alleging violations of various state air requirements. The Corporation has equitable and/or legal defenses for these claims and expects to contest these allegations vigorously. A proposed settlement has been noticed for public comment. The Corporation would be required to pay a $49,768 fine among other things under this consent order.

The Corporation discovered and disclosed to the Louisiana Department of Environmental Quality some lapses in appropriate air permitting for modifications made over ten years ago at the Port Hudson pulp and paper mill. Negotiations with the state on how to resolve the issue have resulted in a settlement agreement being proposed for public comment.

Item 6.

Exhibits and Reports on Form 8-K

(a)

Exhibits

Exhibit 27.

Financial Data Schedule.

(b)

The Corporation filed Current Reports on Form 8-K dated March 23, 2000 and April 19, 2000, in which it reported under Item 5 - "Other Events."

Date: May 5, 2000

GEORGIA-PACIFIC CORPORATION
(Registrant)

Number

Description

------

-----------

27.

Financial Data Schedule. (1)