Washington | 1-4825 | 91-0470860 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification Number) |
¬ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¬ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¬ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¬ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
• | The unaudited pro forma condensed consolidated statements of income of Weyerhaeuser Company for the nine months ended September 30, 2016, the year ended December 31, 2015, the year ended December 31, 2014, and the year ended December 31, 2013; |
• | The unaudited pro forma condensed consolidated balance sheet of Weyerhaeuser Company as of September 30, 2016; and |
• | Notes to the unaudited pro forma condensed consolidated financial information. |
Exhibit No. | Description | |
99.1 | Press release of Weyerhaeuser Company dated November 1, 2016. | |
99.2 | Unaudited pro forma condensed consolidated financial information of Weyerhaeuser Company. |
WEYERHAEUSER COMPANY | |||
By | /s/ Jeanne M. Hillman | ||
Its: | Vice President and Chief Accounting Officer |
Exhibit No. | Description | |
99.1 | Press release of Weyerhaeuser Company dated November 1, 2016. | |
99.2 | Unaudited pro forma condensed consolidated financial information of Weyerhaeuser Company. |
Weyerhaeuser Company | ||||||||||||
Unaudited Pro Forma Condensed Combined Statement Of Earnings | ||||||||||||
For the nine months ended September 30, 2016 | ||||||||||||
in millions, except per-share amounts | ||||||||||||
Weyerhaeuser Company nine months ended September 30, 2016 | Cellulose Fibers business nine months ended September 30, 2016 (1) | Weyerhaeuser Company pro forma nine months ended September 30, 2016 | ||||||||||
Net sales | $ | 4,769 | $ | — | $ | 4,769 | ||||||
Costs of products sold | 3,661 | — | 3,661 | |||||||||
Gross margin | 1,108 | — | 1,108 | |||||||||
Selling expenses | 67 | — | 67 | |||||||||
General and administrative expenses | 248 | — | 248 | |||||||||
Research and development expenses | 14 | — | 14 | |||||||||
Charges for integration and restructuring, closures and impairments | 141 | — | 141 | |||||||||
Other operating income, net | (47 | ) | — | (47 | ) | |||||||
Operating income | 685 | — | 685 | |||||||||
Earnings from equity affiliates | 21 | — | 21 | |||||||||
Interest income and other | 34 | — | 34 | |||||||||
Interest expense, net of capitalized interest | (323 | ) | — | (323 | ) | |||||||
Earnings from continuing operations before income taxes | 417 | — | 417 | |||||||||
Income taxes | (64 | ) | — | (64 | ) | |||||||
Net earnings from continuing operations | 353 | — | 353 | |||||||||
Dividends on preference shares | (22 | ) | — | (22 | ) | |||||||
Net earnings from continuing operations attributable to common shareholders | $ | 331 | $ | — | $ | 331 | ||||||
Earnings from continuing operations per share attributable to common shareholders: | ||||||||||||
Basic | $ | 0.47 | $ | 0.47 | ||||||||
Diluted | $ | 0.46 | $ | 0.46 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||
Basic | 708.4 | 708.4 | ||||||||||
Diluted | 712.2 | 712.2 | ||||||||||
* The accompanying notes are an integral part of, and should be read together with, this unaudited pro forma condensed combined financial information. |
Weyerhaeuser Company | ||||||||||||
Unaudited Pro Forma Condensed Combined Statement Of Earnings | ||||||||||||
For the year ended December 31, 2015 | ||||||||||||
in millions, except per-share amounts | ||||||||||||
Weyerhaeuser Company year ended December 31, 2015 | Cellulose Fibers business year ended December 31, 2015 (1) | Weyerhaeuser Company pro forma year ended December 31, 2015 | ||||||||||
Net sales | $ | 7,082 | $ | (1,860 | ) | $ | 5,222 | |||||
Costs of products sold | 5,694 | (1,573 | ) | 4,121 | ||||||||
Gross margin | 1,388 | (287 | ) | 1,101 | ||||||||
Selling expenses | 113 | (14 | ) | 99 | ||||||||
General and administrative expenses | 289 | (30 | ) | 259 | ||||||||
Research and development expenses | 24 | (6 | ) | 18 | ||||||||
Charges for integration and restructuring, closures and impairments | 25 | (2 | ) | 23 | ||||||||
Other operating costs, net | 18 | 26 | 44 | |||||||||
Operating income | 919 | (261 | ) | 658 | ||||||||
Loss from equity affiliates | (105 | ) | 105 | — | ||||||||
Interest income and other | 36 | — | 36 | |||||||||
Interest expense, net of capitalized interest | (347 | ) | 6 | (341 | ) | |||||||
Earnings from continuing operations before income taxes | 503 | (150 | ) | 353 | ||||||||
Income taxes | 3 | 55 | 58 | |||||||||
Net earnings from continuing operations | 506 | (95 | ) | 411 | ||||||||
Dividends on preference shares | (44 | ) | — | (44 | ) | |||||||
Net earnings from continuing operations attributable to common shareholders | $ | 462 | $ | (95 | ) | $ | 367 | |||||
Earnings from continuing operations per share attributable to common shareholders: | ||||||||||||
Basic | $ | 0.89 | $ | 0.71 | ||||||||
Diluted | $ | 0.89 | $ | 0.71 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||
Basic | 516.4 | 516.4 | ||||||||||
Diluted | 519.6 | 519.6 | ||||||||||
* The accompanying notes are an integral part of, and should be read together with, this unaudited pro forma condensed combined financial information. |
Weyerhaeuser Company | ||||||||||||
Unaudited Pro Forma Condensed Combined Statement Of Earnings | ||||||||||||
For the year ended December 31, 2014 | ||||||||||||
in millions, except per-share amounts | ||||||||||||
Weyerhaeuser Company year ended December 31, 2014 | Cellulose Fibers business year ended December 31, 2014 (1) | Weyerhaeuser Company pro forma year ended December 31, 2014 | ||||||||||
Net sales | $ | 7,403 | $ | (1,936 | ) | $ | 5,467 | |||||
Costs of products sold | 5,763 | (1,580 | ) | 4,183 | ||||||||
Gross margin | 1,640 | (356 | ) | 1,284 | ||||||||
Selling expenses | 112 | (15 | ) | 97 | ||||||||
General and administrative expenses | 338 | (32 | ) | 306 | ||||||||
Research and development expenses | 27 | (7 | ) | 20 | ||||||||
Charges for integration and restructuring, closures and impairments | 44 | — | 44 | |||||||||
Other operating income, net | (201 | ) | 31 | (170 | ) | |||||||
Operating income | 1,320 | (333 | ) | 987 | ||||||||
Loss from equity affiliates | (1 | ) | 1 | — | ||||||||
Interest income and other | 38 | — | 38 | |||||||||
Interest expense, net of capitalized interest | (344 | ) | 6 | (338 | ) | |||||||
Earnings from continuing operations before income taxes | 1,013 | (326 | ) | 687 | ||||||||
Income taxes | (185 | ) | 114 | (71 | ) | |||||||
Net earnings from continuing operations | 828 | (212 | ) | 616 | ||||||||
Dividends on preference shares | (44 | ) | — | (44 | ) | |||||||
Net earnings from continuing operations attributable to common shareholders | $ | 784 | $ | (212 | ) | $ | 572 | |||||
Earnings from continuing operations per share attributable to common shareholders: | ||||||||||||
Basic | $ | 1.41 | $ | 1.03 | ||||||||
Diluted | $ | 1.40 | $ | 1.02 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||
Basic | 556.7 | 556.7 | ||||||||||
Diluted | 560.9 | 560.9 | ||||||||||
* The accompanying notes are an integral part of, and should be read together with, this unaudited pro forma condensed combined financial information. |
Weyerhaeuser Company | ||||||||||||
Unaudited Pro Forma Condensed Combined Statement Of Earnings | ||||||||||||
For the year ended December 31, 2013 | ||||||||||||
in millions, except per-share amounts | ||||||||||||
Weyerhaeuser Company year ended December 31, 2013 | Cellulose Fibers business year ended December 31, 2013 (1) | Weyerhaeuser Company pro forma year ended December 31, 2013 | ||||||||||
Net sales | $ | 7,254 | $ | (1,902 | ) | $ | 5,352 | |||||
Costs of products sold | 5,716 | (1,611 | ) | 4,105 | ||||||||
Gross margin | 1,538 | (291 | ) | 1,247 | ||||||||
Selling expenses | 125 | (17 | ) | 108 | ||||||||
General and administrative expenses | 404 | (36 | ) | 368 | ||||||||
Research and development expenses | 33 | (8 | ) | 25 | ||||||||
Charges for integration and restructuring, closures and impairments | 377 | — | 377 | |||||||||
Other operating income, net | (35 | ) | 20 | (15 | ) | |||||||
Operating income | 634 | (250 | ) | 384 | ||||||||
Earnings (loss) from equity affiliates | 1 | (3 | ) | (2 | ) | |||||||
Interest income and other | 54 | — | 54 | |||||||||
Interest expense, net of capitalized interest | (369 | ) | 6 | (363 | ) | |||||||
Earnings from continuing operations before income taxes | 320 | (247 | ) | 73 | ||||||||
Income taxes | 171 | 86 | 257 | |||||||||
Net earnings from continuing operations | 491 | (161 | ) | 330 | ||||||||
Dividends on preference shares | (23 | ) | — | (23 | ) | |||||||
Net earnings from continuing operations attributable to common shareholders | $ | 468 | $ | (161 | ) | $ | 307 | |||||
Earnings from continuing operations per share attributable to common shareholders: | ||||||||||||
Basic | $ | 0.82 | $ | 0.54 | ||||||||
Diluted | $ | 0.82 | $ | 0.54 | ||||||||
Weighted average number of common shares outstanding: | ||||||||||||
Basic | 566.3 | 566.3 | ||||||||||
Diluted | 571.2 | 571.2 | ||||||||||
* The accompanying notes are an integral part of, and should be read together with, this unaudited pro forma condensed combined financial information. |
Weyerhaeuser Company | ||||||||||||||||
Unaudited Pro Forma Condensed Combined Balance Sheet | ||||||||||||||||
As of September 30, 2016 | ||||||||||||||||
in millions | Weyerhaeuser Company | Cellulose Fibers business (a) | Pro forma adjustments (b) | Weyerhaeuser Company pro forma | ||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 769 | $ | — | $ | 1,728 | $ | 2,497 | ||||||||
Receivables, less discounts and allowances | 412 | — | — | 412 | ||||||||||||
Receivables for taxes | 5 | — | — | 5 | ||||||||||||
Inventories | 368 | — | — | 368 | ||||||||||||
Prepaid expenses and other current assets | 150 | — | — | 150 | ||||||||||||
Assets of discontinued operations | 1,652 | (1,652 | ) | — | — | |||||||||||
Total current assets | 3,356 | (1,652 | ) | 1,728 | 3,432 | |||||||||||
Property and equipment, less accumulated depreciation | 1,476 | — | — | 1,476 | ||||||||||||
Construction in progress | 202 | — | — | 202 | ||||||||||||
Timber and timberlands at cost, less depletion charged to disposals | 14,424 | — | — | 14,424 | ||||||||||||
Minerals and mineral rights, net | 321 | — | — | 321 | ||||||||||||
Investments in and advances to equity affiliates | 73 | — | — | 73 | ||||||||||||
Goodwill | 40 | — | — | 40 | ||||||||||||
Deferred tax assets | 122 | — | — | 122 | ||||||||||||
Other assets | 317 | — | — | 317 | ||||||||||||
Restricted financial investments held by variable interest entities | 615 | — | — | 615 | ||||||||||||
Total assets | $ | 20,946 | $ | (1,652 | ) | $ | 1,728 | $ | 21,022 | |||||||
LIABIILITIES AND EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Current maturities of long-term debt | $ | 1,981 | $ | — | $ | — | $ | 1,981 | ||||||||
Notes payable | 1 | — | — | 1 | ||||||||||||
Accounts payable | 234 | — | — | 234 | ||||||||||||
Accrued liabilities | 533 | — | — | 533 | ||||||||||||
Liabilities of discontinued operations | 578 | (578 | ) | — | — | |||||||||||
Total current liabilities | 3,327 | (578 | ) | — | 2,749 | |||||||||||
Long-term debt | 6,329 | — | — | 6,329 | ||||||||||||
Long-term debt (nonrecourse to the company) held by variable interest entities | 511 | — | — | 511 | ||||||||||||
Deferred pension and other postretirement benefits | 875 | — | — | 875 | ||||||||||||
Deposit from contribution of timberlands to related party | 429 | — | — | 429 | ||||||||||||
Other liabilities | 285 | — | — | 285 | ||||||||||||
Total liabilities | 11,756 | (578 | ) | — | 11,178 | |||||||||||
Commitments and contingencies | ||||||||||||||||
Equity: | ||||||||||||||||
Common shares | 935 | — | — | 935 | ||||||||||||
Other capital | 8,264 | — | — | 8,264 | ||||||||||||
Retained earnings | 1,101 | — | 654 | 1,755 | ||||||||||||
Cumulative other comprehensive income (loss) | (1,110 | ) | — | — | (1,110 | ) | ||||||||||
Total equity | 9,190 | — | 654 | 9,844 | ||||||||||||
Total liabilities and equity | $ | 20,946 | $ | (578 | ) | $ | 654 | $ | 21,022 | |||||||
* The accompanying notes are an integral part of, and should be read together with, this unaudited pro forma condensed combined financial information. |
(a) | Represents the elimination of the balances of the Cellulose Fibers business as reported in the historical Weyerhaeuser balance sheet. |
Pulp Business | Printing Papers Business | Liquid Packaging Business | Total | ||||
Net cash proceeds from Transactions: | |||||||
Cash proceeds | 2,200 | 42 | ** | 2,242 | |||
Transaction closing costs | (10 | ) | (1 | ) | ** | (11 | ) |
Estimated income tax obligation | (495 | ) | — | ** | (495 | ) | |
1,736 | |||||||
Estimated other nonrecurring transaction costs to be incurred during fourth quarter 2016 | (8 | ) | |||||
Total after tax cash consideration received from Transactions | 1,728 | ||||||
Net book value of assets and liabilities of discontinued operations to be disposed | (1,074 | ) | |||||
Net gain after tax from Transactions reflected in retained earnings | 654 | ||||||
**The sale of our Liquid Packaging Board business occurred on August 31, 2016, and the proceeds, transaction closing costs, income tax obligation, and net gain realized are already reflected in our historical balance sheet as of September 30, 2016. |
(1) | Represents the elimination of the Cellulose Fibers business operations as reported in the historical Weyerhaeuser statement of earnings. |