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PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
6 Months Ended
Jun. 30, 2011
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
The components of net periodic benefit costs (credits) are:
 
PENSION
 
QUARTER ENDED
 
YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS    
JUNE 30,

2011
 
JUNE 30,

2010
 
JUNE 30,

2011
 
JUNE 30,

2010
Service cost
$
13


 
$
11


 
$
25


 
$
22


Interest cost
70


 
70


 
139


 
138


Expected return on plan assets
(106
)
 
(114
)
 
(211
)
 
(223
)
Amortization of actuarial loss
34


 
16


 
69


 
31


Amortization of prior service costs
3


 
5


 
7


 
9


Loss due to curtailment and special termination benefits


 


 
1


 
3


Total net periodic benefit costs (credits)
$
14


 
$
(12
)
 
$
30


 
$
(20
)
 
OTHER POSTRETIREMENT BENEFITS
 
QUARTER ENDED
 
YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS    
JUNE 30,

2011
 
JUNE 30,

2010
 
JUNE 30,

2011
 
JUNE 30,

2010
Service cost
$


 
$
1


 
$
1


 
$
1


Interest cost
6


 
6


 
12


 
13


Amortization of actuarial loss
4


 
1


 
7


 
6


Amortization of prior service credits
(5
)
 
(6
)
 
(11
)
 
(11
)
Adjustments


 


 
4


 


Total net periodic benefit costs
$
5


 
$
2


 
$
13


 
$
9






FAIR VALUE OF PENSION PLAN ASSETS
We estimate the fair value of pension plan assets based upon the information available during the year-end reporting process. In some cases, primarily private equity funds, the information available consists of net asset values as of an interim date, cash flows between the interim date and the end of the year and market events. When the differences are significant, we revise the year-end estimated fair value of pension plan assets to incorporate year-end net asset values reflected in audited financial statements received after we have filed our annual report on Form 10-K. Based on the final valuations as of December 31, 2010, the fair value of pension assets increased in second quarter 2011 by $138 million, or 2.9 percent.
Our consolidated balance sheet as of June 30, 2011, has been adjusted to reflect the net funded status of our pension plans that would have been recorded as of December 31, 2010, if the final asset valuations and participant information had been available to us as of the end of 2010. Based on this information we recorded the following adjustments during second quarter 2011:
$20 million increase in the pension asset;
$86 million decrease in the liability for deferred pension;
$38 million increase in the liability for deferred income taxes; and
$68 million net decrease in cumulative other comprehensive loss, which resulted in an increase in total Weyerhaeuser shareholders' interest.


EXPECTED CONTRIBUTIONS AND BENEFIT PAYMENTS
During 2011 we expect to:
be required to contribute approximately $80 million to our Canadian registered and nonregistered pension plans;
contribute $19 million to our U.S. nonqualified pension plans and have no required contribution to the U.S. qualified plan; and
make benefit payments of $44 million to our U.S. and Canadian other postretirement plans.