-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Pdd6R2IFBqAb86pbdfdpiMrCCXNqY4xuVaDoIkYznfATdCC9v+F7pvk39ogBhuIz Ot1IkjQEyAl0+D0VwiqYlw== 0000106535-95-000025.txt : 19951106 0000106535-95-000025.hdr.sgml : 19951106 ACCESSION NUMBER: 0000106535-95-000025 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950924 FILED AS OF DATE: 19951103 SROS: CSX SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: WEYERHAEUSER CO CENTRAL INDEX KEY: 0000106535 STANDARD INDUSTRIAL CLASSIFICATION: LUMBER & WOOD PRODUCTS (NO FURNITURE) [2400] IRS NUMBER: 910470860 STATE OF INCORPORATION: WA FISCAL YEAR END: 1228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-04825 FILM NUMBER: 95587068 BUSINESS ADDRESS: STREET 1: CORPORATE CONTROLLERS DEPARTMENT STREET 2: CH 2C26 CITY: TACOMA STATE: WA ZIP: 98477 BUSINESS PHONE: 2069242345 MAIL ADDRESS: STREET 1: CORPORATE CONTROLLERS DEPARTMENT STREET 2: CH 2C26 CITY: TACOMA STATE: WA ZIP: 98477 10-Q 1 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 thirty-nine weeks ended September 24, 1995 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 1-4825 WEYERHAEUSER COMPANY A Washington Corporation (IRS Employer Identification No. 91-0470860) Tacoma, Washington 98477 Telephone (206) 924-2345 Securities registered pursuant to Section 12(b) of the Act: Name of Each Exchange on Title of Each Class Which Registered - ------------------------------- --------------------------- Common Shares ($1.25 par value) Chicago Stock Exchange New York Stock Exchange Pacific Stock Exchange Tokyo Stock Exchange Rights to Purchase Cumulative Preference New York Stock Exchange Shares, Fourth Series Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ___. The number of shares outstanding of the registrant's class of common stock, as of October 27, 1995 was 201,710,008 common shares ($1.25 par value). Weyerhaeuser Company - -2- This page intentionally left blank. Weyerhaeuser Company - -3-
WEYERHAEUSER COMPANY AND SUBSIDIARIES Index to Form 10-Q Filing For the Thirty-nine Weeks Ended September 24, 1995 Page No. -------------- Part I. Financial Information Item 1. Financial Statements Consolidated Statement of Earnings 4-5 Consolidated Balance Sheet 6-7 Consolidated Statement of Cash Flows 8-9 Notes to Financial Statements 10-16 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 17-20 Part II. Other Information Item 1. Legal Proceedings 21-22 Item 2. Changes in Securities (not applicable) Item 3. Defaults upon Senior Securities (not applicable) Item 4. Submission of Matters to a Vote of Security Holders (not applicable) Item 5. Other Information (not applicable) Item 6. Exhibits and Reports on Form 8-K 22
The financial information included in this report has been prepared in conformity with accounting practices and methods reflected in the financial statements included in the annual report (Form 10-K) filed with the Securities and Exchange Commission for the year ended December 25, 1994. Though not examined by independent public accountants, the financial information reflects, in the opinion of management, all adjustments necessary to present a fair statement of results for the interim periods indicated. The results of operations for the thirty-nine week period ending September 24, 1995 should not be regarded as necessarily indicative of the results that may be expected for the full year. Signature Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereto duly authorized. WEYERHAEUSER COMPANY By /s/ K. J. Stancato ---------------------------- K. J. Stancato Duly Authorized Officer and Principal Accounting Officer November 3, 1995 Weyerhaeuser Company - -4- WEYERHAEUSER COMPANY AND SUBSIDIARIES ____________ CONSOLIDATED EARNINGS For the thirteen and thirty-nine week periods ended September 24, 1995 and September 25, 1994 (Dollar amounts in millions except per share figures) (Unaudited) Thirteen weeks ended: Sept. 24, Sept. 25, 1995 1994 --------- --------- [S] [C] [C] Net sales and revenues: Weyerhaeuser $ 2,895 $ 2,388 Real estate and financial services 217 293 --------- --------- 3,112 2,681 --------- --------- Costs and expenses: Weyerhaeuser: Costs of products sold 2,010 1,784 Depreciation, amortization and fee stumpage 127 121 Selling, general and administrative expenses 194 159 Research and development expenses 12 11 Taxes other than payroll and income taxes 29 38 --------- --------- 2,372 2,113 --------- --------- Real estate and financial services: Costs and operating expenses 160 230 Depreciation and amortization 8 7 Selling, general and administrative expenses 36 35 Taxes other than payroll and income taxes 2 2 Charges for impairment of long-lived assets (Note 1) 291 -- --------- -------- 497 274 --------- -------- 2,869 2,387 --------- -------- Operating income 243 294 Interest expense and other: Weyerhaeuser: Interest expense incurred 71 60 Less interest capitalized 4 8 Other income (expense), net (14) (3) Real estate and financial services: Interest expense incurred 38 37 Less interest capitalized 20 19 Other income, net 5 3 --------- -------- Earnings before income taxes 149 224 Income Taxes (Note 2) 54 80 --------- -------- Net earnings $ 95 $ 144 ========= ======== Per common share (Note 1): Net earnings $ .47 $ .71 ========= ======== Dividends paid $ .40 $ .30 ========= ======== See Accompanying Notes to Financial Statements Weyerhaeuser Company - -5-
Thirty-nine weeks ended: Sept. 24, Sept. 25, 1995 1994 --------- --------- Net sales and revenues: Weyerhaeuser $ 8,306 $ 6,826 Real estate and financial services 625 839 --------- --------- 8,931 7,665 --------- --------- Costs and expenses: Weyerhaeuser: Costs of products sold 5,836 5,063 Depreciation, amortization and fee stumpage 395 366 Selling, general and administrative expenses 535 451 Research and development expenses 35 34 Taxes other than payroll and income taxes 113 114 --------- --------- 6,914 6,028 --------- --------- Real estate and financial services: Costs and operating expenses 461 634 Depreciation and amortization 26 22 Selling, general and administrative expenses 99 118 Taxes other than payroll and income taxes 6 6 Charges for impairment of long-lived assets (Note 1) 291 -- --------- --------- 883 780 --------- --------- 7,797 6,808 --------- --------- Operating income 1,134 857 Interest expense and other: Weyerhaeuser: Interest expense incurred 201 176 Less interest capitalized 16 26 Other income (expense), net (55) (33) Real estate and financial services: Interest expense incurred 107 115 Less interest capitalized 57 59 Other income, net 19 12 --------- --------- Earnings before income taxes 863 630 Income taxes (Note 2) 315 230 --------- --------- Net earnings $ 548 $ 400 ========= ========= Per common share (Note 1): Net earnings $ 2.68 $ 1.95 ========= ========= Dividends paid $ 1.10 $ .90 ========= ========= See Accompanying Notes to Financial Statements
Weyerhaeuser Company - -6-
WEYERHAEUSER COMPANY AND SUBSIDIARIES ____________ CONSOLIDATED BALANCE SHEET September 24, 1995 and December 25, 1994 (Dollar amounts in millions) Sept. 24, Dec. 25, 1995 1994 ---------- --------- (Unaudited) Assets - ------ Weyerhaeuser Current assets: Cash and short-term investments, including restricted deposits in 1995 $ 182 $ 190 Receivables, less allowances 1,077 909 Inventories (Note 3) 874 746 Prepaid expenses 291 284 -------- --------- Total current assets 2,424 2,129 Property and equipment (Note 4) 6,229 6,196 Construction in progress 759 603 Timber and timberlands at cost, less fee stumpage charged to disposals 623 610 Other assets and deferred charges 207 212 -------- --------- Total assets 10,242 9,750 -------- --------- Real estate and financial services Cash and short-term investments, including restricted deposits 45 73 Receivables, less discounts and allowances 100 116 Mortgage and construction notes and mortgage loans receivable 612 472 Investments 75 247 Mortgage-backed certificates and other pledged financial instruments 192 211 Real estate in process of development, less reserves 611 668 Land being processed for development, less reserves 688 738 Deferred acquisition costs 89 92 Investments in and advances to joint ventures and limited partnerships, less reserves 234 430 Other assets 450 361 -------- --------- Total assets 3,096 3,408 -------- --------- $13,338 $13,158 ======== ======== See Accompanying Notes to Financial Statements
Weyerhaeuser Company - -7-
Sept. 24, Dec. 25, 1995 1994 ---------- --------- (Unaudited) Liabilities and shareholders' interest Weyerhaeuser Current liabilities: Notes payable $ 7 $ 6 Current maturities of long-term debt 432 321 Accounts payable (Note 1) 756 796 Accrued liabilities (Note 5) 654 695 ---------- --------- Total current liabilities 1,849 1,818 Long-term debt (Note 7) 2,681 2,713 Deferred income taxes 1,173 986 Deferred pension and other liabilities 508 525 Minority interest in subsidiaries 106 103 Commitments and contingencies (Note 9) -- -- ---------- --------- Total liabilities 6,317 6,145 ---------- --------- Real estate and financial services Notes payable and commercial paper 702 416 Collateralized mortgage obligation bonds 166 183 Long-term debt (Note 7) 1,395 1,770 Other liabilities 292 354 Commitments and contingencies (Note 9) -- -- ---------- --------- Total liabilities 2,555 2,723 ---------- --------- Shareholders' interest (Note 8) Common shares: authorized 400,000,000 shares, issued 206,072,890 shares, $1.25 par value 258 258 Other capital 413 416 Cumulative translation adjustment (83) (107) Retained earnings 4,056 3,733 Treasury common shares, at cost: 4,066,962 and 455,387 (178) (10) ---------- --------- Total shareholders' interest 4,466 4,290 ---------- --------- $13,338 $13,158 ========== ========
Weyerhaeuser Company - -8-
WEYERHAEUSER COMPANY AND SUBSIDIARIES ____________ CONSOLIDATED STATEMENT OF CASH FLOWS For the thirty-nine week periods ended September 24, 1995 and September 25, 1994 (Dollar amounts in millions) (Unaudited) Consolidated -------------------- Sept. 24, Sept. 25, 1995 1994 --------- ---------- Cash flows provided by operations: Net earnings $ 548 $ 400 Non-cash charges to income: Depreciation, amortization and fee stumpage 421 388 Deferred income taxes, net 90 78 Changes in working capital: Receivables (150) (108) Inventories, prepaid expenses, real estate and land (170) (2) Mortgages held for sale (145) 194 Other liabilities (80) 123 (Gain) loss on disposition of assets 17 3 Charges for impairment of long-lived assets 291 -- Other 24 (61) --------- -------- Net cash provided by operations 846 1,015 --------- -------- Cash flows from investing in the business: Property and equipment (588) (783) Timber and timberlands (49) (19) Mortgage and investment securities acquired (20) (32) Proceeds from sale of: Property and equipment 15 35 Business -- 14 Mortgage and investment securities 197 131 Other (4) (1) --------- -------- Net cash flows from investing in the business (449) (655) --------- -------- Cash flows from financing activities: Sale of debentures, notes and CMO bonds 611 133 Sale of industrial revenue bonds 100 127 Notes and commercial paper borrowings, net (210) (188) Cash dividends on common shares (225) (185) Payments on debentures, notes, bank credit agreements, capital leases, industrial revenue bonds and CMO bonds (535) (343) Purchase of treasury common shares (188) -- Exercise of stock options 17 15 Other (3) (1) --------- -------- Net cash flows from financing activities (433) (442) --------- -------- Net increase (decrease) in cash and short-term investments (36) (82) Cash and short-term investments at beginning of year 263 279 --------- -------- Cash and short-term investments at end of period $ 227 $ 197 ========= ======== Cash paid (received) during the period for: Interest, net of amount capitalized $ 252 $ 232 ========= ======== Income taxes $ 171 $ 132 ========= ======== See Accompanying Notes to Financial Statements
Weyerhaeuser Company - -9-
Real Estate and Weyerhaeuser Financial Services -------------------- -------------------- Sept. 24, Sept. 25, Sept. 24, Sept. 25, 1995 1994 1995 1994 --------- --------- --------- --------- $ 740 $ 389 $(192) $ 11 395 366 26 22 187 74 (97) 4 (167) (118) 17 10 (134) (6) (36) 4 -- -- (145) 194 (95) 195 15 (72) 17 7 -- (4) -- -- 291 -- 21 (28) 3 (33) -------- -------- ------- -------- 964 879 (118) 136 -------- -------- ------- -------- (577) (771) (11) (12) (49) (19) -- -- -- -- (20) (32) 15 12 -- 23 -- -- -- 14 -- -- 197 131 (41) (7) 37 6 -------- -------- ------- -------- (652) (785) 203 130 -------- -------- ------- -------- 566 17 45 116 100 127 -- -- (411) (66) 201 (122) (225) (185) -- -- (176) (41) (359) (302) (188) -- -- -- 17 15 -- -- (3) (1) -- -- -------- -------- -------- -------- (320) (134) (113) (308) -------- -------- -------- -------- (8) (40) (28) (42) 190 192 73 87 -------- -------- -------- -------- $ 182 $ 152 $ 45 $ 45 ======== ======== ======== ======== $ 204 $ 175 $ 48 $ 57 ======== ======== ======== ======== $ 186 $ 63 $ (15) $ 69 ======== ======== ======== ========
Weyerhaeuser Company - -10- WEYERHAEUSER COMPANY AND SUBSIDIARIES ____________ NOTES TO FINANCIAL STATEMENTS For the thirty-nine week periods ended September 24, 1995 and September 25, 1994 Note 1: Summary of Significant Accounting Policies Consolidation The consolidated financial statements include the accounts of Weyerhaeuser Company and all of its majority-owned domestic and foreign subsidiaries. Significant intercompany transactions and accounts are eliminated. Certain of the consolidated financial statements and notes to financial statements are presented in two groupings: (1) Weyerhaeuser Company (Weyerhaeuser, or the company), which is principally engaged in the growing and harvesting of timber and the manufacture, distribution and sale of forest products, and (2) Real estate and financial services, which includes Weyerhaeuser Real Estate Company (WRECO), which is involved in real estate development and construction, and Weyerhaeuser Financial Services, Inc. (WFS), whose principal subsidiary is Weyerhaeuser Mortgage Company (WMC). Changes in Accounting Principles In 1994, the company implemented Statement of Financial Accounting Standards (SFAS) No. 112, "Employers' Accounting for Postemployment Benefits," which requires accrual accounting be used for the cost of benefits provided to former or inactive employees who have not yet retired. The adoption of this pronouncement, which required a cumulative catch-up charge to earnings, did not have a significant impact on the company's results of operations or its financial position. In 1995, the company implemented SFAS No. 114, "Accounting by Creditors for Impairment of a Loan," which requires creditors to measure impairment based on the present value of expected future cash flows discounted at the loan's effective interest rate, and SFAS No. 118, "Accounting by Creditors for Impairment of a Loan--Income Recognition and Disclosures," which amended SFAS No. 114 to allow creditors to use existing methods for recognizing interest on impaired loans and also requires creditors to disclose certain information about how interest income was recognized on impaired loans. The adoption of these pronouncements did not have a significant impact on results of operations or financial position. In 1994, the company implemented SFAS No. 115, "Accounting for Certain Investments in Debt and Equity Securities," which addresses accounting and reporting for investments in equity securities that have readily determinable fair values, and for all investments in debt securities. The adoption of this pronouncement did not have a significant impact on the company's results of operations or its financial position. In the 1995 third quarter, the company implemented SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," which was issued by the Financial Accounting Standards Board (FASB) in March 1995. The effect of the implementation of this pronouncement, which caused the revaluation of certain real estate assets, along with the company's decision to accelerate the disposition of some of those real estate assets, was a charge of $291 million to operations in the quarter. This revaluation did not have a material impact on the company's current financial position or liquidity. Weyerhaeuser Company - -11- Prospective Accounting Changes In May 1995, the FASB issued SFAS No. 122, "Accounting for Mortgage Servicing Rights--an Amendment of FASB Statement No. 65," which modifies the treatment of the capitalization of servicing rights by mortgage banking enterprises. The change constitutes a simplification in procedures, eliminating the separate treatment of servicing rights acquired through loan origination and those acquired through purchasing transactions, as previously required under SFAS No. 65. This pronouncement shall be applied prospectively in fiscal years beginning after December 15, 1995. The company believes the future adoption of this pronouncement by its mortgage banking subsidiary will not have a significant impact on results of operations or financial position. Net Earnings Per Common Share Net earnings per common share are based on the weighted average number of common shares outstanding during the respective periods. Average common equivalent shares (stock options) outstanding have not been included, as the computation would not be dilutive. Weighted average common shares outstanding were 204,508,087 and 205,521,610 at September 24, 1995 and September 25, 1994, respectively. Fully diluted earnings-per-share amounts are not applicable because the effect of the conversion of the stock options is not dilutive. Derivatives The company has only limited involvement with derivative financial instruments and does not use them for trading purposes. They are used to manage well-defined interest rate and foreign exchange risks. These include: . Foreign exchange contracts, which are hedges for foreign denominated accounts receivable and payable, have gains or losses recognized at settlement date. . Interest rate swaps entered into with major banks or financial institutions in which the company pays a fixed rate and receives a floating rate with the interest payments being calculated on a notional amount. The premiums received by the company on the sale of these swaps are treated as deferred income and amortized against interest expense over the term of the agreements. . Hedging transactions entered into by the company's mortgage banking subsidiary to protect both the completed loan inventory and loans in process against changes in interest rates. The financial instruments used to manage interest rate risk are forward sales commitments, interest rate futures and options. The company's use of derivatives does not have a significant effect on the company's results of operations or its financial position. Cash and Short-Term Investments For purposes of cash flow and fair value reporting, short-term investments with original maturities of 90 days or less are considered as cash equivalents. Short-term investments are stated at cost, which approximates market. Inventories Inventories are stated at the lower of cost or market. Cost includes labor, materials and production overhead. The last-in, first-out (LIFO) method is used to cost the majority of domestic raw materials, in process and finished goods inventories; either the first-in, first- out (FIFO) or average cost method is used to cost all other inventories. Weyerhaeuser Company - -12- Property and Equipment The company's property accounts are maintained on an individual asset basis. Betterments and replacements of major units are capitalized. Maintenance, repairs and minor replacements are expensed. Depreciation is provided generally on the straight-line or unit-of- production methods at rates based on estimated service lives. Amortization of logging rail and truck roads is provided generally as timber is harvested and is based upon rates determined with reference to the volume of timber estimated to be removed over such facilities. The cost and related depreciation of property sold or retired is removed from the property and allowance for depreciation accounts and gain or loss is recorded. Timber and Timberlands Timber and timberlands are carried at cost less fee stumpage charged to disposals. Fee stumpage is the cost of standing timber and is charged to fee timber disposals as fee timber is harvested, lost as the result of casualty or sold. Stumpage rates are determined with reference to the cost of timber and the related volume of timber estimated to be recoverable. Timber carrying costs are expensed as incurred. Accounts Payable The company's banking system provides for the daily replenishment of major bank accounts as checks are presented. Accordingly, there were negative book cash balances of $128 million and $151 million at September 24, 1995 and December 25, 1994, respectively. Such balances result from outstanding checks that had not yet been paid by the bank and are reflected in accounts payable in the consolidated balance sheets. Income Taxes Deferred income taxes are provided to reflect temporary differences between the financial and tax bases of assets and liabilities using presently enacted tax rates and laws. Pension Plans The company has pension plans covering most of its employees. The U.S. plan covering salaried employees provides pension benefits based on the employee's highest monthly earnings for five consecutive years during the final ten years before retirement. Plans covering hourly employees generally provide benefits of stated amounts for each year of service. Contributions to U.S. plans are based on funding standards established by the Employee Retirement Income Security Act of 1974 (ERISA). Postretirement Benefits Other Than Pensions In addition to providing pension benefits, the company provides certain health care and life insurance benefits for some retired employees and accrues the expected future cost of these benefits for its current eligible retirees and some employees. All of the company's salaried employees and some hourly employees may become eligible for these benefits when they retire. Reclassifications Certain reclassifications have been made to conform prior periods' data to the current format. Weyerhaeuser Company - -13- WRECO WRECO recognizes income from the sales of single family housing units when construction has been completed, required down payments received and title has passed to the customer. Income from the sales of multi- family, commercial properties, developed lots and undeveloped land is recognized when required down payments are received and other income recognition criteria are satisfied. Real estate is stated at the lower of cost or fair value. The determination of fair value is based on market pricing of comparable assets when available, or the present value of expected future cash flows from these assets. Changes in future market conditions, interest rates and company plans may affect estimates of fair value. Land, land development and construction costs, including capitalized carrying costs, are accumulated and allocated to individual units in proportion to relative sales value. WFS WMC and its subsidiaries are primarily engaged in the mortgage banking industry and also offer insurance services. . Mortgage notes held for sale are stated at the lower of cost or market, which is computed by the aggregate method (unrealized losses are offset by unrealized gains). Hedging transactions are entered into to protect the inventory value from increases in interest rates. Hedge positions are also used to protect the pipeline of loan applications in process from increases in interest rates. Hedging gains and losses realized during the commitment and warehousing period are deferred to the extent of unrealized gains on the related mortgage loans held for sale. . The costs associated with purchasing mortgage servicing rights are deferred. Excess service fees result from loan sales in which WMC retains the loan servicing rights and are based on the present value of future servicing revenue less a normal servicing fee, based upon the estimated remaining life of the loans sold. The Mortgage Securities Corporations were formed for the limited purpose of issuing collateralized mortgage obligation bonds (CMO bonds) secured by Government National Mortgage Association and Federal National Mortgage Association certificates. The CMO bonds are the sole obligation of the issuer, and neither the company nor any affiliated company has guaranteed or is otherwise obligated with respect to the CMO bonds. . The mortgage-backed certificates are carried at par value adjusted for any unamortized discount or premium. These discounts or premiums are amortized using a method that approximates the effective interest method over the estimated life of the underlying mortgage loans. . CMO bonds are carried at unamortized cost. Discounts and premiums are amortized using a method that approximates the effective interest method over their estimated life. Weyerhaeuser Company - -14- Note 2: Income Taxes
Provisions for income taxes include the following: Thirty-nine Weeks Ended -------------------- Sept. 24, Sept. 25, Dollar amounts in millions 1995 1994 --------- --------- Federal: Current $ 114 $ 81 Deferred 74 61 -------- -------- 188 142 -------- -------- State: Current 21 17 Deferred 6 4 -------- -------- 27 21 -------- -------- Foreign: Current 90 54 Deferred 10 13 -------- -------- 100 67 -------- -------- Total $ 315 $ 230 ======== ========
Income tax provisions for interim periods are based on the current best estimate of the effective tax rate expected to be applicable for the full year. The effective tax rate reflects anticipated tax credits, foreign taxes and other tax planning alternatives. For the periods ended September 24, 1995 and September 25, 1994, the company's provision for income taxes as a percent of earnings before income taxes is greater than the 35% federal statutory rate due principally to the effect of state income taxes. The effective tax rate for the thirty-nine week periods ended September 24, 1995 and September 25, 1994 was 36.5%. Deferred taxes are provided for the temporary differences between the financial and tax bases of assets and liabilities, applying presently enacted tax rates and laws. The major sources of these temporary differences include depreciable and depletable assets, real estate, and pension and retiree health care liabilities. Note 3: Inventories
Sept. 24, Dec. 25, Dollar amounts in millions 1995 1994 --------- --------- Logs and chips $ 137 $ 108 Lumber, plywood and panels 113 115 Pulp, newsprint and paper 116 88 Containerboard, paperboard and containers 101 56 Other products 135 112 Materials and supplies 272 267 --------- --------- $ 874 $ 746 ========= =========
Weyerhaeuser Company - -15- Note 4: Property and Equipment
Sept. 24, Dec. 25, Dollar amounts in millions 1995 1994 --------- -------- Property and equipment, at cost: Land $ 164 $ 159 Buildings and improvements 1,535 1,509 Machinery and equipment 8,774 8,557 Rail and truck roads and other 618 628 --------- -------- 11,091 10,853 Less allowance for depreciation and amortization 4,862 4,657 --------- -------- $ 6,229 $ 6,196 ========= ========
Note 5: Accrued Liabilities
Sept. 24, Dec. 25, Dollar amounts in millions 1995 1994 --------- -------- Payroll - wages and salaries, incentive awards, retirement and vacation pay $ 235 $ 217 Taxes - social security and real and personal property 62 63 Interest 48 67 Income taxes 85 105 Other 224 243 --------- -------- $ 654 $ 695 ========= ========
Note 6: Short-Term Debt The company has short-term bank credit lines that provide for borrowings of up to the total amount of $725 million, all of which could be availed by the company, WRECO and WMC at September 24, 1995 and December 25, 1994. No portion of these lines has been availed of by the company, WRECO or WMC at September 24, 1995 or December 25, 1994. None of the entities referred to herein is a guarantor of the borrowings of the others. WMC has short-term special credit lines that provide for borrowings of up to $245 million at September 24, 1995 and $235 million at December 25, 1994. Borrowings against these lines were $136 million and $85 million as of September 24, 1995 and December 25, 1994, respectively. Weyerhaeuser Company - -16- Note 7: Long-Term Debt At September 24, 1995 and December 25, 1994, the company's lines of credit include a five-year competitive advance and revolving credit facility agreement entered into in July 1994 with a group of banks that provides for borrowings of up to the total amount of $1.55 billion, all of which can be availed of by the company, and $1 billion, which can be availed by WMC. Borrowings are at LIBOR or other such interest rates as mutually agreed to between the borrower and lending banks. No portion of this line has been availed of by the company or WMC at September 24, 1995 or December 25, 1994. At September 24, 1995 and December 25, 1994, WMC had $15 million outstanding against a one-year evergreen credit commitment entered into in 1990. WMC has a revolving credit agreement with a bank to provide for: (1) borrowings of up to $35 million for two years at prime rate, LIBOR or such other rate as may be agreed upon by WMC and the banks; (2) a commitment fee based on the unused credit; and (3) conversion of the notes as of July 1, 1997, to a five-year term loan payable in equal quarterly installments. At September 24, 1995 and December 25, 1994, $10 million and $20 million, respectively, were outstanding under this agreement. During 1994, WFS amended a three-year term loan facility that was entered into in 1992 which provides for: (1) borrowings of up to $525 million and $405 million at September 24, 1995 and December 25, 1994, respectively, at LIBOR or other such rates as may be agreed upon by WFS and the banks; and (2) a commitment fee on the unused portion of the credit. $525 million and $405 million were outstanding under this facility at September 24, 1995 and December 25, 1994, respectively. To the extent that these credit commitments expire more than one year after the balance sheet date and are unused, an equal amount of commercial paper is classifiable as long-term debt. Amounts so classified are:
Sept. 24, Dec. 25, Dollar amounts in millions 1995 1994 --------- -------- Weyerhaeuser $ -- $ 411 Real estate and financial services 344 429
Total interest costs incurred by WRECO are capitalized and will ultimately be accounted for as an element of operating costs. The company's compensating balance agreements were not significant. Note 8: Shareholders' Interest Common shares reserved for stock option plans and for conversion of issued and outstanding convertible subordinated debentures were 6,105,000 shares at September 24, 1995 and 5,688,000 shares at December 25, 1994. Note 9: Commitments and Contingencies The company's capital expenditures have averaged about $855 million in recent years but are expected to be approximately $1.1 billion in 1995; however, the 1995 expenditure level could be increased or decreased as a consequence of changes in economic conditions. The company is a party to legal proceedings and environmental matters generally incidental to its business. Although the final outcome of any legal proceeding or environmental matter is subject to a great many variables and cannot be predicted with any degree of certainty, the company presently believes that the ultimate outcome resulting from these proceedings and matters would not have a material effect on the company's current financial position, liquidity or results of operations; however, in any given future reporting period such proceedings or matters could have a material effect on results of operations. Weyerhaeuser Company - -17- WEYERHAEUSER COMPANY AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations Net sales and revenues and earnings before interest expense and income taxes by segment are:
Thirteen Weeks Thirty-nine Ended Weeks Ended -------------------- -------------------- Sept. 24, Sept. 25, Sept. 24, Sept. 25, Dollar amounts in millions 1995 1994 1995 1994 --------- --------- --------- --------- Net sales and revenues: Timberlands and wood products $ 1,263 $ 1,279 $ 3,721 $ 3,710 Pulp, paper and packaging 1,573 1,054 4,397 2,952 Real estate 169 243 488 682 Financial services 48 50 137 157 Corporate and other 59 55 188 164 --------- --------- -------- -------- $ 3,112 $ 2,681 $ 8,931 $ 7,665 ========= ========= ======== ======== Earnings before interest expense and income taxes: Timberlands and wood products $ 196 $ 246 $ 625 $ 772 Pulp, paper and packaging 364 64 877 99 Real estate(1) (236) 2 (239) 6 Financial services(1) (2) (57) 2 (50) 9 Corporate and other (51) (38) (165) (106) -------- -------- --------- --------- $ 216 $ 276 $ 1,048 $ 780 ======== ======== ========= ========= (1) 1995 third quarter and year-to-date results include charges of $233 million and $58 million for Real estate and Financial services, respectively, for the implementation of Statement of Financial Accounting Standards No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of." (2) Includes interest expense of $18 million and $18 million for thirteen weeks and $50 million and $56 million for thirty-nine weeks related to the financial services businesses.
Results of Operations Consolidated third quarter net sales were $3.1 billion, 16 percent over the $2.7 billion reported in the same quarter of 1994. Net earnings for the current quarter were $95 million, or 47 cents per common share, compared to $144 million or 71 cents per common share reported in the 1994 third quarter. The current quarter results include an after-tax charge of $184.5 million, or 90 cents per common share, for the implementation of Statement of Financial Accounting Standards (SFAS) No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of." 1995 thirty-nine week consolidated sales were $8.9 billion, which is a 17 percent increase over the $7.7 billion in the same period last year. Net earnings for the 1995 thirty-nine week period were $548 million, or $2.68 per common share, for a 37 percent increase over the $400 million earnings and $1.95 per common share reported in 1994. The timberlands and wood products segment reported operating earnings of $196 million for the current quarter, up from the $188 million reported last quarter, but less than the $246 million in operating earnings in the same quarter a year ago. Year-to-date, this segment has earned $625 million, compared to last year's earnings of $772 million. Log exports for the quarter were lower than in both the preceding quarter and the same quarter a year ago, while the domestic markets experienced some gains this quarter over previous quarters due to an improvement in the housing market and a stronger wood chip market. Weyerhaeuser Company - -18- Third party sales and total production volumes for the major products in this segment were as follows: Thirteen Weeks Ended Year-to-date -------------------- -------------------- Sept. 24, Sept. 25, Sept. 24, Sept. 25, 1995 1994 1995 1994 --------- --------- --------- --------- Third party sales volumes (millions): Raw materials--cubic feet 136 134 404 421 Softwood lumber--board feet 1,262 1,167 3,452 3,266 Softwood plywood and veneer-- square feet (3/8") 701 744 1,999 2,009 Composite panels--square feet (3/4") 173 165 478 497 Oriented strand board-- square feet (3/8") 453 464 1,335 1,358 Hardboard--square feet (7/16") 55 43 143 126 Hardwood lumber--board feet 69 66 203 189 Hardwood doors (thousands) 155 160 485 458 Total production volumes (millions): Logs--cubic feet 225 161 676 493 Softwood lumber--board feet 835 787 2,586 2,415 Softwood plywood and veneer-- square feet (3/8") 320 313 949 938 Composite panels--square feet (3/4") 149 149 429 448 Oriented strand board-- square feet (3/8") 408 387 1,221 1,169 Hardboard--square feet (7/16") 31 30 92 93 Hardwood lumber--board feet 67 57 191 170 Hardwood doors (thousands) 161 160 485 447
Strong earnings performances continued in the pulp, paper and packaging segment with operating earnings of $364 million on sales of $1.6 billion in the quarter compared to earnings of $64 million and sales of $1.1 billion reported in the same quarter of 1994. Year-to- date, this segment reported $877 million of operating earnings in contrast to the $99 million earned in the same period last year. Sales for the thirty-nine week period were $4.4 billion, nearly a 50 percent increase over the 1994 year-to-date performance. Compared to the year ago quarter, all businesses in the segment are experiencing strong pricing. When compared with the 1995 second quarter, market pulp continues to improve while some of the other businesses slowed, primarily the recycling business which is experiencing weaker prices and the packaging business where volumes have weakened in line with general industry trends. Third party sales and total production volumes for the major products in this segment were as follows: Thirteen Weeks Ended Year-to-date -------------------- -------------------- Sept. 24, Sept. 25, Sept. 24, Sept. 25, 1995 1994 1995 1994 --------- --------- --------- --------- Third party sales volumes (thousands): Pulp--air-dry metric tons 628 517 1,827 1,564 Newsprint--metric tons 163 154 493 472 Paper--tons 242 255 761 756 Paperboard--tons 55 54 171 155 Containerboard--tons 58 58 192 188 Packaging--MSF 8,471 8,934 25,157 25,954 Recycling--tons 390 252 1,009 715 Total production volumes (thousands): Pulp--air-dry metric tons 561 522 1,607 1,550 Newsprint--metric tons 165 162 499 480 Paper--tons 259 251 784 754 Paperboard--tons 53 44 170 147 Containerboard--tons 598 593 1,794 1,755 Packaging--MSF 8,840 9,352 26,377 27,122 Recycling--tons 683 518 1,921 1,506
Weyerhaeuser Company - -19- The company's real estate and financial services segments posted a combined loss of $293 million during the current quarter. $291 million of this loss came from two related actions: (1) the implementation of SFAS No. 121, which required the company to change its method of valuing long-lived assets, and (2) the company's decision to accelerate the disposition of some of the affected real estate assets. Before these actions, these segments reported a loss of $2 million compared to a $4 million profit in the same quarter a year ago. The real estate segment results have been impacted by decreased single family closings. Falling interest rates during the quarter have increased loan originations in the mortgage banking business and contributed to earnings; however, the seasonality of home sales and higher interest rates in the first quarter have resulted in year-to-date earnings equaling the 1994 first half results. The increase in the company's cost of products sold in both the thirteen and thirty-nine week periods, compared to the same periods a year ago, is in line with higher sales activity, principally in the pulp, paper and packaging segment. The increase in depreciation expense in the thirty-nine week period, when compared to the prior year, is the result of the completion and start-up of several mill modernization projects in the pulp, paper and packaging segment in late 1994. Excluding the SFAS No. 121 charges, the decrease in costs and operating expenses of the real estate and financial services segments are in line with the reduced sales activities in those segments in both the thirteen and thirty-nine week periods. Other income (expense) is an aggregation of both recurring and occasional non-operating income and expense items and, as a result, fluctuates from period to period. No individual income (or expense) item for the thirteen and thirty-nine week periods ended September 24, 1995 and September 25, 1994 was significant in relation to net earnings. Liquidity and Capital Resources The long-term debt level was relatively unchanged during the third quarter. Year-to-date, it has increased by a net $79 million from the sale of $100 million of industrial revenue bonds and $566 million of debentures and other debt which is partially offset by the call of $150 million of 9 3/8 percent debentures, retirement of $411 million of commercial paper and a $26 million reduction of other debt. The 1995 year-to-date increase in net working capital of $264 million consists primarily of increases in receivables and inventories due to increased business activity and increases in accounts payable and accrued liabilities, partially offset by an increase in the current maturities of long-term debt. The year-to-date change in cash provided by operations in the real estate and financial services segments from 1994 to 1995 was due primarily to origination activity exceeding sales of mortgages in the company's mortgage banking business. The non-cash charges for impairment of long-lived assets are reflected on the balance sheet as reductions of real estate held for development, land being processed for development and investments in joint ventures and limited partnerships. Notes payable and commercial paper borrowings increased during the year for payment of long-term debt and the financing of construction activity in the real estate segment and to reflect reclassification of long-term debt in the financial services segment. The company paid $225 million in cash dividends in the first three quarters of 1995 compared to $185 million in the same period of 1994. This increase reflects the raising of the company's quarterly dividend from 30 cents to 40 cents effective with the second quarter of 1995. Capital expenditures for 1995 year-to-date amounted to $637 million compared to $802 million in the same period of 1994. The 1995 expenditures by segment were $260 million by timberlands and wood products, $346 million for pulp, paper and packaging and $31 million by other segments. Expenditures in the pulp, paper and packaging segment were significantly lower than the $605 million spent during the same period in 1994, reflecting the completion of the company's modernization projects at Longview, Washington and Plymouth, North Carolina. The company currently anticipates capital expenditures in 1995 to approximate $1.1 billion. The cash needed to meet these and other company needs was generated principally from internal cash flow. Earnings before interest expense and income taxes plus non-cash charges for the thirty-nine week periods ended September 24, 1995 and September 25, 1994 were $769 million and $905 million, respectively, for the timberlands and wood products segment, and $1.1 billion and $313 million, respectively, for the pulp, paper and packaging segment. The company is committed to the maintenance of a sound, conservative capital structure. This commitment is based upon two considerations: the obligation to protect the underlying interests of its shareholders and lenders and the desire to have access, at all times, to all major financial markets. Weyerhaeuser Company - -20- The important elements of the policy governing the company's capital structure are as follows: . To view separately the capital structures of Weyerhaeuser Company, Weyerhaeuser Real Estate Company and Weyerhaeuser Financial Services, Inc. given the very different nature of their assets and business activities. The amount of debt and equity associated with the capital structure of each will reflect the basic earnings capacity, real value and unique liquidity characteristics of the assets dedicated to that business. . The combination of maturing short-term debt and the structure of long-term debt will be managed judiciously to minimize liquidity risk. Accounting Pronouncements In the 1995 third quarter, the company implemented SFAS No. 121, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of," which was issued by the Financial Accounting Standards Board (FASB) in March 1995. The effect of the implementation of this pronouncement, which caused the revaluation of certain real estate assets, along with the company's decision to accelerate the disposition of some of those real estate assets, was a charge of $291 million to operations in the quarter. This revaluation did not have a material impact on the company's current financial position or liquidity. In May 1995, the FASB issued SFAS No. 122, "Accounting for Mortgage Servicing Rights--an Amendment of FASB Statement No. 65," which modifies the treatment of the capitalization of servicing rights by mortgage banking enterprises. The change constitutes a simplification in procedures, eliminating the separate treatment of servicing rights acquired through loan origination and those acquired through purchasing transactions, as previously required under SFAS No. 65. This pronouncement shall be applied prospectively in fiscal years beginning after December 15, 1995. The company believes the future adoption of this pronouncement by its mortgage banking subsidiary will not have a significant impact on results of operations or financial position. Other Items . The company has embarked on a new series of business improvement plans which targets $600 million in pre-tax operating improvements measured in 1994 prices and costs by year-end 1997. This exceeds, by $200 million, the original goal of $400 million. . In April 1995, the company announced that it is in private discussions with potential financial investors about the possibility of forming a joint-venture partnership that would make investments in timberlands and related assets around the world. The size of the venture, of which the company would be a 50 percent owner, would depend upon the specific investments made, but could ultimately reach $1.5 billion over time. The company's contribution to the joint venture would be U. S. timberlands with a market value of approximately $260 million and cash, while the investors group would provide cash contributions of an equal amount. . The ten million share repurchase program announced at the company's 1995 annual meeting has been initiated and 4.3 million shares were purchased in the second and third quarters. Contingencies The company is a party to legal proceedings and environmental matters generally incidental to its business. Although the final outcome of any legal proceeding or environmental matter is subject to a great many variables and cannot be predicted with any degree of certainty, the company presently believes that the ultimate outcome resulting from these proceedings and matters would not have a material effect on the company's current financial position, liquidity or results of operations; however, in any given future reporting period such proceedings or matters could have a material effect on results of operations. Weyerhaeuser Company - -21- Part II. Other Information Item 1. Legal Proceedings Trial began in May 1992 in a federal income tax refund case that the company filed in July 1989 in the United States Claims Court. The complaint seeks a refund of federal income taxes that the company contends it overpaid in 1977 through 1983. The alleged overpayments are the result of the disallowance of certain timber casualty losses and certain deductions claimed by the company arising from export transactions. The refund sought was approximately $29 million, plus statutory interest from the dates of the alleged overpayments. The company settled the portion of the case relating to export transactions and received a tax refund of approximately $10 million, plus statutory interest. In September 1994, the United States Court of Federal Claims issued an opinion on the casualty loss issues which will result in the allowance of additional tax refunds of approximately $2 million, plus statutory interest. The company has appealed the decision. On March 6, 1992, the company filed a complaint in the Superior Court for King County, Washington against a number of insurance companies. The complaint seeks a declaratory judgment that the insurance companies named as defendants are obligated under the terms and conditions of the policies sold by them to the company to defend the company and to pay, on the company's behalf, certain claims asserted against the company. The claims relate to alleged environmental damage to third-party sites and to some of the company's own property to which allegedly toxic material was delivered or on which allegedly toxic material was placed in the past. Since December 1992, the company has agreed to settlements with all but one of the defendants. In July 1993, the trial court dismissed fourteen of the thirty-five sites named in the complaint. In May 1994, the Washington State Supreme Court reversed the trial court's dismissal of those sites. Trial on two sites against the sole remaining defendant began in October 1994 and resulted in a jury verdict which awarded damages to the company with respect to one of the sites. Trial on several additional sites is set for February 1996. The company received from the Lane County, Oregon Regional Air Pollution Control Authority (LRAPA) a draft Notice of Violation which seeks penalties for alleged Prevention of Significant Deterioration (PSD) violations at the company's Springfield, Oregon particleboard operations. LRAPA informed the company in July 1995 that it will withdraw its draft Notice of Violation (NOV) and will not seek fines or penalties. On September 15, 1995, however, LRAPA issued a revised draft NOV (the Revised Draft NOV), which alleged that the Springfield particleboard facility had violated a condition of its Air Contaminant Discharge Permit (ACDP). The allegations in the Revised Draft NOV are based upon the same facts and circumstances relied upon by LRAPA in the prior draft NOV. The company has undertaken a review of its ten major pulp and paper facilities to evaluate the facilities' compliance with PSD regulations, and has disclosed the potential of PSD compliance issues to seven state agencies and the Environmental Protection Agency (EPA). The company is currently working with the states to negotiate settlements for the alleged violations. In April 1995, EPA Region X issued a Notice of Violation to the company and to North Pacific Paper Corporation (NORPAC), a joint venture in which the company has an 80 percent ownership interest. The Notice of Violation addresses alleged PSD violations at NORPAC's Longview, Washington newsprint manufacturing facility. In accordance with instructions from EPA, the company and the Washington State Department of Ecology are working to resolve the issues raised in the Notice of Violation. A proposed settlement with the State of Washington that resolves all PSD issues at the Longview/NORPAC complex is currently pending. The company is also negotiating with the State of Oklahoma regarding the resolution of alleged PSD violations at the company's Valliant, Oklahoma containerboard manufacturing facility. A proposed settlement with the State of Oklahoma that resolves all PSD issues at the Valliant containerboard facility is currently pending. The company is also negotiating with the State of North Carolina regarding the resolution of alleged PSD violations at the company's New Bern, North Carolina and Plymouth, North Carolina manufacturing facilities. The Washington State Department of Ecology investigated the accidental release of chlorine, chlorine dioxide and non-condensable gasses in July 1994 at the company's pulp mill in Longview, and issued a $10 thousand penalty for the chlorine release and a $5 thousand penalty for the non-condensable gasses release which have been paid by the company. In June 1995, EPA issued an Administrative Complaint against the company, seeking penalties of $225 thousand and alleging a failure to timely report the chlorine release. The company has appealed. Weyerhaeuser Company - -22- Part II. Other Information Item 1. Legal Proceedings - continued On April 9, 1993, the company entered into a Stipulated Final Order (SFO) with the Oregon Department of Environmental Quality for alleged air emissions in excess of permit levels and PSD noncompliance at the company's North Bend, Oregon containerboard facility. The SFO establishes a compliance schedule for installing control technology. A supplemental SFO assessed upfront penalties of $247 thousand and penalties of $500 per day until compliance is demonstrated. The SFO required demonstrated compliance by December 1993 and a historical evaluation of the facility's PSD status. The company submitted an initial PSD review to the state in December 1993. A revised report was delivered to the state in March 1995. On November 2, 1992, an action was filed against the company in the Circuit Court for the First Judicial District of Hinds County, Mississippi, on behalf of a purported class of riparian property owners in Mississippi and Alabama whose properties are located on the Tennessee Tombigbee Waterway, Aliceville Lake, Cedar Creek and the Magoway Creek. The complaint seeks $1 billion in compensatory and punitive damages for diminution in property value, personal injuries and mental anguish allegedly resulting from the discharge of purported hazardous substances, including dioxins and furans, by the company's pulp and paper mill in Columbus, Mississippi, and the alleged fraudulent concealments of such discharge. The complaint also seeks an injunction prohibiting future releases and the removal of hazardous substances allegedly released in the past. On August 20, 1993, a companion action was filed in Greene County, Alabama, on behalf of a similar purported class of riparian owners with essentially the same claims as the Mississippi case. By order dated April 5, 1995, venue of the Alabama action was transferred to Sumter County, Alabama. On January 20, 1995, the court in the Alabama action certified a class of all persons who, as of the date the action commenced, were riparian owners, lessees and licensees of properties located on the Tennessee Tombigbee Waterway in Greene, Sumter, Pickens and Marengo counties, Alabama, and Lowndes and Noxubee counties, Mississippi, to determine whether the company is liable to the members of the class for compensatory and/or punitive damages and to determine the amount of punitive damages, if any, to be awarded to the class as a whole. By order dated April 12, 1995, the geographical boundaries of the class were amended to run from below the Columbus mill's wastewater discharge pipe to the point where the Black Warrior River joins the Tennessee Tombigbee Waterway. The class is estimated to range from approximately 1,000 to 1,500 members. Neither the Mississippi action nor the Alabama action is presently scheduled for trial. The company was sued in the United States District Court for the District of Alaska by two corporations with which the company had entered into financing arrangements, a marketing agreement, and a technical assistance agreement. The plaintiffs claimed the company breached contractual and common law duties by allegedly failing to adequately market and ship the plaintiffs' products, misrepresenting its marketing and shipping capabilities, and acting to further its interests at the plaintiffs' expense. The plaintiffs in the First Amended Complaint, filed in May 1992, sought an unstated amount of damages described as more than $50 million in compensatory damages plus not less than $75 million in punitive damages. The claim for punitive damages was dismissed by the trial court. In March 1994, a jury returned a verdict against the company awarding damages of $1.2 million and the case was subsequently settled. The company is also a party to various proceedings relating to the clean-up of hazardous waste sites under the Comprehensive Environmental Response Compensation and Liability Act, commonly known as "Superfund," and similar state laws. The EPA and/or various state agencies have notified the company that it may be a potentially responsible party with respect to other hazardous waste sites as to which no proceedings have been instituted against the company. The company is also a party to other legal proceedings generally incidental to its business. Although the final outcome of any legal proceeding is subject to a great many variables and cannot be predicted with any degree of certainty, the company presently believes that any ultimate outcome resulting from the legal proceedings discussed herein, or all of them combined, would not have a material effect on the company's current financial position, liquidity or results of operations; however, in any given future reporting period, such legal proceedings could have a material effect on results of operations. Item 6. Exhibits and Reports on Form 8-K (a) Not applicable. (b) The registrant filed a report on Form 8-K dated August 16, 1995, reporting information under Item 5, Other Events. Weyerhaeuser Company - -23- This page intentionally left blank. EX-27 2
5 1000000 9-MOS DEC-31-1995 SEP-24-1995 227 0 1177 0 874 2424 6229 0 13338 1849 4242 258 0 0 4208 13338 8931 8931 6297 6297 831 5 235 863 315 548 0 0 0 548 2.68 2.68 Receivables are stated net of allowances and Property, Plant and Equipment is stated net of accumulated depreciation.
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