LONGVIEW TIMBER PURCHASE

12 Months Ended

Dec. 31, 2013

Business Acquisition [Line Items]

LONGVIEW TIMBER PURCHASE

LONGVIEW TIMBER PURCHASE

On July 23, 2013, we purchased 100 percent of the equity interests in Longview Timber LLC (Longview Timber) for $1.58 billion cash and assumed debt of $1.07 billion, for an aggregate purchase price of $2.65 billion. Longview Timber was a privately-held Delaware limited liability company engaged in the ownership and management of approximately 645,000 acres of timberlands in Oregon and Washington. We believe Longview Timber has productive lands with favorable age class distribution that will provide us with optionality for harvest. Earnings, assets and liabilities from this business are reported as part of the Timberlands segment beginning in third quarter 2013.

Summarized Unaudited Pro Forma Information that Presents Combined Amounts as if this Acquisition Occurred at the Beginning of 2012

DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES
	2013		2012
Net sales	$	8,646	$	7,236
Net earnings attributable to Weyerhaeuser common shareholders	$	557	$	348
Net earnings per share attributable to Weyerhaeuser common shareholders, basic	$	0.96	$	0.61
Net earnings per share attributable to Weyerhaeuser common shareholders, diluted	$	0.95	$	0.60

Estimated Fair Values of Identifiable Assets Acquired and Liabilities Assumed as of the Acquisition Date

DOLLAR AMOUNTS IN MILLIONS
	July 23, 2013		Measurement Period Adjustments		December 31, 2013
Current assets	$	46	$	—	$	46
Property and equipment	39		1		40
Timber and timberlands	2,654		2		2,656
Other assets	2		—		2
Total assets acquired	2,741		3		2,744
Current liabilities	10		—		10
Long-term debt	1,122		—		1,122
Other liabilities	5		3		8
Total liabilities assumed	1,137		3		1,140
Net assets acquired	$	1,604	$	—	$	1,604

The initial allocations of purchase price were recorded at the estimated fair value of assets acquired and liabilities assumed based upon the best information available to management. The purchase price allocation was finalized in the fourth quarter 2013. The measurement period adjustments reflect additional information obtained to record the fair value of certain assets acquired and liabilities assumed based on facts and circumstances existing as of the acquisition date.

In order to finance our purchase of Longview Timber, we issued the following:

• 29 million common shares on June 24, 2013, at the price of $27.75 per share for net proceeds of $781 million;

• 4.4 million common shares on July 8, 2013, at the price of $27.75 per share for net proceeds of $116 million, in connection with the exercise of an overallotment option; and

• 13.8 million of our 6.375 percent Mandatory Convertible Preference Shares, Series A, par value $1.00 and liquidation preference of $50.00 per share on June 24, 2013, for net proceeds of $669 million. See Note 18: Shareholders' Interest for more

For issuances of shares, excess of par value is recorded in "Other capital" in our Consolidated Balance Sheet.

Proceeds were used to finance the acquisition and pay related fees and expenses. We paid $11 million in fees related to a bridge loan in 2013. As of the close of the Longview Timber purchase, we did not use the loan and these fees were expensed in 2013, which is recorded in "Interest expense" in our Consolidated Statement of Operations.

We obtained additional debt financing in 2013 which was used to repay all of the assumed debt in 2013. See Note 15: Long-term Debt.