PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

9 Months Ended

Sep. 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	SEPTEMBER 2011			SEPTEMBER 2010			SEPTEMBER 2011			SEPTEMBER 2010
Service cost	$	11		$	11		$	36		$	33
Interest cost	68			70			207			208
Expected return on plan assets	(104		)	(113		)	(315		)	(336		)
Amortization of actuarial loss	33			15			102			46
Amortization of prior service costs	3			4			10			13
Loss due to curtailment and special termination benefits	13			2			14			5
Total net periodic benefit costs (credits)	$	24		$	(11	)	$	54		$	(31	)

	OTHER POSTRETIREMENT BENEFITS
	QUARTER ENDED						YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS	SEPTEMBER 2011			SEPTEMBER 2010			SEPTEMBER 2011			SEPTEMBER 2010
Service cost	$	1		$	—		$	2		$	1
Interest cost	6			5			18			18
Amortization of actuarial loss	3			3			10			9
Amortization of prior service credits	(6		)	(5		)	(17		)	(16		)
Adjustments	—			—			4			—
Total net periodic benefit costs	$	4		$	3		$	17		$	12

Loss due to curtailment and special termination benefits includes charges of $11 million related to the sale of our hardwoods and Westwood Shipping Lines operations in third quarter 2011. These charges are included in our results of discontinued operations.

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. 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 $83 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.