EX-99.2 3 v27066exv99w2.htm EXHIBIT 99.2 exv99w2
 

Exhibit 99.2
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
                                                                                 
CONSOLIDATED EARNINGS   Q1     Q2     Q3     Q4     Year-to-date  
        (in millions)   March 26,     March 27,     June 25,     June 26,     Sept. 24,     Sept. 25,     Dec. 31,     Dec. 25,     Dec. 31,     Dec. 25,  
    2006     2005     2006     2005     2006     2005     2006     2005     2006     2005  
Net sales and revenues:
                                                                                
Weyerhaeuser (1)
   $ 4,566     $ 4,577     $ 4,911     $ 5,017     $ 4,579     $ 4,836     $ 4,505     $ 4,701     $ 18,561     $ 19,131  
Real Estate and Related Assets
     690       655       746       648       749       596       1,150       1,016       3,335       2,915  
 
                                                            
Total net sales and revenues
     5,256       5,232       5,657       5,665       5,328       5,432       5,655       5,717       21,896       22,046  
 
                                                            
 
                                                                                
Costs and expenses:
                                                                                
Weyerhaeuser:
                                                                                
Costs of products sold (2)
     3,652       3,544       3,855       3,871       3,628       3,841       3,665       3,877       14,800       15,133  
Depreciation, depletion and amortization
     306       316       305       319       305       320       331       326       1,247       1,281  
Selling expenses
     109       115       126       117       123       116       134       107       492       455  
General and administrative expenses
     259       225       228       219       237       239       266       224       990       907  
Research and development expenses (3)
     16       14       15       12       23       18       15       17       69       61  
Charges for restructuring (4)
     —       5       18       4       4       2       —       10       22       21  
Charges for closure of facilities (5)
     1       5       17       3       43       29       51       656       112       693  
Impairment of goodwill (6)
     746       —       3       —       —       —       —       —       749       —  
Refund of countervailing and anti-dumping duties
     —       —       —       —       —       —       (344 )     —       (344 )     —  
Other operating costs, net (2) (7) (8)
     31       9       (23 )     (39 )     (34 )     (33 )     (12 )     19       (38 )     (44 )
 
                                                            
 
     5,120       4,233       4,544       4,506       4,329       4,532       4,106       5,236       18,099       18,507  
 
                                                            
Real Estate and Related Assets:
                                                                                
Costs and operating expenses (9)
     482       426       553       441       539       401       764       678       2,338       1,946  
Depreciation and amortization
     3       3       4       4       10       4       8       5       25       16  
Selling expenses
     37       34       43       36       44       36       56       46       180       152  
General and administrative expenses
     30       24       35       25       30       28       29       28       124       105  
Other operating costs, net
     (3 )     —       3       (2 )     (2 )     (2 )     (1 )     1       (3 )     (3 )
Impairment of long-lived assets
     —       —       3       —       14       —       19       33       36       33  
 
                                                            
 
     549       487       641       504       635       467       875       791       2,700       2,249  
 
                                                            
Total costs and expenses
     5,669       4,720       5,185       5,010       4,964       4,999       4,981       6,027       20,799       20,756  
 
                                                            
 
                                                                                
Operating income
     (413 )     512       472       655       364       433       674       (310 )     1,097       1,290  
 
Interest expense and other:
                                                                                
Weyerhaeuser:
                                                                                
Interest expense incurred (10)
     (152 )     (196 )     (152 )     (179 )     (149 )     (193 )     (162 )     (171 )     (615 )     (739 )
Less: interest capitalized (2)
     16       —       20       2       21       3       28       54       85       59  
Interest income and other (11)
     19       27       15       20       17       143       19       24       70       214  
Equity in income (loss) of affiliates (12)
     3       —       6       4       —       2       (2 )     (12 )     7       (6 )
Real Estate and Related Assets:
                                                                                
Interest expense incurred
     (14 )     (14 )     (14 )     (14 )     (12 )     (13 )     (15 )     (14 )     (55 )     (55 )
Less: interest capitalized
     14       14       14       14       12       13       15       14       55       55  
Interest income and other
     10       5       3       (2 )     7       4       10       5       30       12  
Equity in income of unconsolidated entities (13)
     21       10       15       13       14       14       8       20       58       57  
 
                                                            
Earnings (loss) from continuing operations before income taxes
     (496 )     358       379       513       274       406       575       (390 )     732       887  
Income tax (expense) benefit (14)
     (87 )     (125 )     (82 )     (225 )     (89 )     (119 )     (177 )     151       (435 )     (318 )
 
                                                            
Earnings (loss) from continuing operations
     (583 )     233       297       288       185       287       398       (239 )     297       569  
Earnings (loss) from discontinued operations, net of taxes (15)
     3       6       17       132       26       (2 )     52       28       98       164  
 
                                                            
Net earnings (loss)
   $ (580 )   $ 239     $ 314     $ 420     $ 211     $ 285     $ 450     $ (211 )   $ 395     $ 733  
 
                                                            
 
                                                                                
Basic net earnings (loss) per share:
                                                                                
Continuing operations
   $ (2.37 )   $ 0.96     $ 1.20     $ 1.18     $ 0.75     $ 1.17     $ 1.67     $ (0.98 )   $ 1.21     $ 2.33  
Discontinued operations
     0.01       0.02       0.07       0.54       0.10       (0.01 )     0.21       0.12       0.40       0.67  
 
                                                            
Net earnings (loss) per share
   $ (2.36 )   $ 0.98     $ 1.27     $ 1.72     $ 0.85     $ 1.16     $ 1.88     $ (0.86 )   $ 1.61     $ 3.00  
 
                                                            
 
Diluted net earnings (loss) per share:
                                                                                
Continuing operations
   $ (2.37 )   $ 0.96     $ 1.19     $ 1.17     $ 0.75     $ 1.17     $ 1.67     $ (0.98 )   $ 1.21     $ 2.32  
Discontinued operations
     0.01       0.02       0.07       0.54       0.10       (0.01 )     0.21       0.12       0.40       0.66  
 
                                                            
Net earnings (loss) per share
   $ (2.36 )   $ 0.98     $ 1.26     $ 1.71     $ 0.85     $ 1.16     $ 1.88     $ (0.86 )   $ 1.61     $ 2.98  
 
                                                            
 
                                                                                
Dividends paid per share
   $ 0.50     $ 0.40     $ 0.50     $ 0.50     $ 0.60     $ 0.50     $ 0.60     $ 0.50     $ 2.20     $ 1.90  
 
                                                            
 
                                                                                
Weighted average shares
outstanding (in thousands)
                                                                                
Basic
     245,794       242,863       248,147       244,702       247,428       245,009       238,824       245,215       244,931       244,447  
Diluted
     245,794       244,185       249,194       245,881       247,900       246,190       239,525       246,198       245,707       245,559  
PRELIMINARY RESULTS SUBJECT TO AUDIT

1

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONSOLIDATED EARNINGS
   (in millions)
                                                                                         
                                                                            Year-to-date
            Q1 2006   Q1 2005   Q2 2006   Q2 2005   Q3 2006   Q3 2005   Q4 2006   Q4 2005   2006   2005
(1)
   Includes countervailing and anti-dumping duties and related costs:   $ 11     $ 22     $ 10     $ 27     $ 7     $ 19     $ —     $ 16     $ 28     $ 84  
(2)   In the fourth quarter of 2005, Weyerhaeuser began capitalizing interest on qualifying assets of Weyerhaeuser Real Estate Company (WRECO). These amounts are included in Weyerhaeuser capitalized interest. Weyerhaeuser cost of products sold includes amounts recognized to expense previously capitalized interest in connection with the sale of WRECO assets. The year-to-date 2005 amounts were recorded in the fourth quarter of 2005. The net cumulative effect for years prior to 2005 was recorded in Weyerhaeuser other operating costs, net. Weyerhaeuser results include the following related to capitalized interest on WRECO assets:
                                                                                 
                                                                    Year-to-date  
    Q1 2006     Q1 2005     Q2 2006     Q2 2005     Q3 2006     Q3 2005     Q4 2006     Q4 2005     2006     2005  
Cost of products sold:
    $ 7     $ —      $ 7     $ —      $ 8     $ —      $ 13      $ 32      $ 35      $ 32  
Interest capitalized:
     (14 )     —       (15 )     —       (17 )     —       (22 )     (50 )     (68 )     (50 )
Other operating costs, net:
     —       —       —       —       —       —       —       (25 )     —       (25 )
 
                                                            
 
   $ (7 )   $ —     $ (8 )   $ —     $ (9 )   $ —     $ (9 )   $ (43 )   $ (33 )   $ (43 )
 
                                                            
(3)   The third quarter of 2006 includes a $9 million charge related to the acquisition of OrganicID, a research and development company.
 
(4)   The second quarter of 2006 includes an $18 million charge related to the restructuring of the Containerboard, Packaging and Recycling business model.
 
(5)   See detail of closure charges by segment on page 4.
 
(6)   The first and second quarters of 2006 include charges of $746 million and $3 million, respectively, for the impairment of goodwill associated with the fine paper business.
                                                                                         
                                                                            Year-to-date
            Q1 2006   Q1 2005   Q2 2006   Q2 2005   Q3 2006   Q3 2005   Q4 2006   Q4 2005   2006   2005
(7)
   Includes net foreign exchange gains (losses), primarily from fluctuations in Canadian and New Zealand exchange rates:   $ (26 )   $ 13     $ 21     $ (13 )   $ 17     $ 37     $ 16     $ (21 )   $ 28     $ 16  
(8)   The third quarter of 2006 includes $23 million of income related to a reduction of the reserve for hardboard siding claims and charges of $7 million for the impairment of fixed assets related to production curtailments. The first quarter of 2005 includes a $12 million charge related to the settlement of a linerboard antitrust lawsuit. The second quarter of 2005 includes an $18 million charge related to alder litigation and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. The fourth quarter of 2005 includes a $38 million charge related to the settlement of linerboard antitrust litigation.
 
(9)   The first quarter of 2006 includes income of $8 million related to a warranty insurance recovery.
 
(10)   The third and fourth quarters of 2005 include charges of $21 million and $15 million, respectively, related to the early extinguishment of debt.
 
(11)   The third quarter of 2005 includes a $115 million gain on the sale of an investment in a joint venture.
 
(12)   The third quarter of 2006 includes a $2 million charge and the fourth quarter of 2005 includes a $15 million charge related to the impairment of investments in equity affiliates.
 
(13)   The first quarter of 2006 includes recognition of $9 million of deferred income in connection with partnership restructurings.
 
(14)   The second quarter of 2006 includes a one-time tax benefit of $48 million related to a change in Texas state income tax law, a reduction in the Canadian federal income tax rate and a deferred tax adjustment related to the Medicare Part D subsidy. The second quarter of 2005 includes a charge of $44 million related to the repatriation of $1.1 billion of eligible Canadian earnings under the provisions of the American Jobs Creation Act of 2004. The third quarter of 2005 includes a one-time tax benefit of $14 million related to a change in the Ohio state income tax law.
 
(15)   Discontinued operations includes the net operating results of the company’s coastal British Columbia operations and its North American and European composites operations. The third quarter of 2006 includes a pretax gain of $51 million and related tax expense of $18 million associated with the sale of the North American composites operations and an $8 million charge to write off additional goodwill associated with the coastal British Columbia operations. The fourth quarter of 2006 includes a pretax gain of $45 million and related tax expense of $4 million associated with the sale of the Irish composites operations. The second quarter of 2005 includes a gain of $110 million, including a tax benefit of $46 million, related to the sale of the coastal British Columbia operations. The fourth quarter of 2005 includes a pretax gain of $57 million and related tax expense of $23 million associated with the sale of the French composites operations.
PRELIMINARY RESULTS SUBJECT TO AUDIT

2

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
                                                                                 
    Q1     Q2     Q3     Q4     Year-to-date  
    March 26,     March 27,     June 25,     June 26,     Sept. 24,     Sept. 25,     Dec. 31,     Dec. 25,     Dec. 31,     Dec. 25,  
Net sales and revenues (in millions):   2006     2005     2006     2005     2006     2005     2006     2005     2006     2005  
Timberlands:
                                                                                
Logs
   $ 201     $ 182     $ 198     $ 195     $ 200     $ 188     $ 182     $ 196     $ 781     $ 761  
Other products
     62       82       71       63       46       65       56       76       235       286  
 
                                                            
 
     263       264       269       258       246       253       238       272       1,016       1,047  
 
                                                            
Wood Products:
                                                                                
Softwood lumber
     782       892       857       1,032       733       889       625       811       2,997       3,624  
Plywood
     135       183       147       196       134       184       113       172       529       735  
Veneer
     13       13       13       10       9       9       7       12       42       44  
Composite panels
     121       120       140       132       71       122       25       123       357       497  
OSB
     287       288       273       306       203       267       176       303       939       1,164  
Hardwood lumber
     99       94       105       102       96       95       98       99       398       390  
Engineered I-Joists
     169       150       202       202       162       186       137       166       670       704  
Engineered Solid Section
     204       179       231       228       190       226       169       200       794       833  
Logs
     7       27       5       24       5       6       6       5       23       62  
Other products
     256       270       327       340       302       325       268       290       1,153       1,225  
 
                                                            
 
     2,073       2,216       2,300       2,572       1,905       2,309       1,624       2,181       7,902       9,278  
 
                                                            
Cellulose Fiber and White Papers:
                                                                                
Pulp
     394       376       402       355       404       381       457       370       1,657       1,482  
Paper
     613       599       601       611       604       604       652       603       2,470       2,417  
Coated groundwood
     40       42       44       47       42       45       45       46       171       180  
Liquid packaging board
     46       47       62       52       59       50       62       54       229       203  
Other products
     14       14       17       12       21       16       22       12       74       54  
 
                                                            
 
     1,107       1,078       1,126       1,077       1,130       1,096       1,238       1,085       4,601       4,336  
 
                                                            
Containerboard, Packaging and Recycling:
                                                                                
Containerboard
     82       117       84       101       92       86       119       91       377       395  
Packaging
     911       898       1,002       969       997       929       1,021       914       3,931       3,710  
Recycling
     80       92       85       92       89       87       91       81       345       352  
Bags
     20       22       20       21       23       20       25       20       88       83  
Other products
     34       34       46       40       44       47       47       46       171       167  
 
                                                            
 
     1,127       1,163       1,237       1,223       1,245       1,169       1,303       1,152       4,912       4,707  
 
                                                            
 
                                                                                
Real Estate and Related Assets
     690       655       746       648       749       596       1,150       1,016       3,335       2,915  
 
                                                                                
Corporate and Other
     116       149       117       151       123       146       128       154       484       600  
 
Less: sales of discontinued operations
     (120 )     (293 )     (138 )     (264 )     (70 )     (137 )     (26 )     (143 )     (354 )     (837 )
 
                                                                                
 
                                                            
 
   $ 5,256     $ 5,232     $ 5,657     $ 5,665     $ 5,328     $ 5,432     $ 5,655     $ 5,717     $ 21,896     $ 22,046  
 
                                                            
                                                                                 
  Q1     Q2     Q3     Q4     Year-to-date  
Contribution (charge) to pre-tax earnings:   March 26,     March 27,     June 25,     June 26,     Sept. 24,     Sept. 25,     Dec. 31,     Dec. 25,     Dec. 31,     Dec. 25,  
(in millions)   2006     2005     2006     2005     2006     2005     2006     2005     2006     2005  
Timberlands (1) (2) (4)
   $ 198     $ 200     $ 224     $ 210     $ 178     $ 191     $ 167     $ 183     $ 767     $ 784  
Wood Products (1) (2) (5)
     117       131       131       204       11       124       110       26       369       485  
Cellulose Fiber and White Papers (1) (2) (6)
     (763 )     19       23       16       115       (2 )     120       (477 )     (505 )     (444 )
Containerboard, Packaging and Recycling (1) (2) (7)
     22       48       74       99       96       36       71       (188 )     263       (5 )
Real Estate and Related Assets (2) (8)
     172       183       123       156       135       145       293       250       723       734  
Corporate and Other (1) (2) (3) (9)
     (102 )     (17 )     (40 )     99       (78 )     101       (3 )     (17 )     (223 )     166  
 
                                                            
 
   $ (356 )   $ 564     $ 535     $ 784     $ 457     $ 595     $ 758     $ (223 )   $ 1,394     $ 1,720  
 
                                                            
PRELIMINARY RESULTS SUBJECT TO AUDIT

3

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS
(in millions)
(1)  Closure charges by segment:
                                                                                
                                                                    Year-to-date  
    Q1 2006     Q1 2005     Q2 2006     Q2 2005     Q3 2006     Q3 2005     Q4 2006     Q4 2005     2006     2005  
Timberlands
   $ —     $ 3     $ —     $ —     $ —     $ —     $ 1     $ 3     $ 1     $ 6  
Wood Products
     —       1       1       1       10       6       48       91       59       99  
Cellulose Fiber and White Papers
     (1 )     —       11       —       4       22       (2 )     427       12       449  
Containerboard, Packaging and Recycling
     2       4       5       2       3       1       4       130       14       137  
Corporate and Other
     —       —       —       —       26       —       —       5       26       5  
 
                                                            
 
   $ 1     $ 8     $ 17     $ 3     $ 43     $ 29     $ 51     $ 656     $ 112     $ 696  
 
                                                            
The above closure charges for the third quarter of 2006 includes a $26 million charge in the Corporate and Other segment for the impairment of corporate assets related to the Prince Albert pulp and paper facility.
The first quarter and full year 2005 include $3 million of costs incurred within the company’s discontinued operations.
 
(2)  Share-based compensation charges (income) recognized by segment:
                                                                               
                                                                       
                                                                    Year-to-date  
    Q1 2006     Q1 2005     Q2 2006     Q2 2005     Q3 2006     Q3 2005     Q4 2006     Q4 2005     2006     2005  
Timberlands
   $ 1     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 1     $ —  
Wood Products
     2       —       —       —       —       —       1       —       3       —  
Cellulose Fiber and White Papers
     1       —       —       —       1       —       1       —       3       —  
Containerboard, Packaging and Recycling
     2       —       (1 )     —       1       —       —       —       2       —  
Real Estate and Related Assets
     —       —       2       —       —       —       —       —       2       —  
Corporate and Other
     15       2       (5 )     (6 )     1       3       7       12       18       11  
 
                                                            
 
   $ 21     $ 2     $ (4 )   $ (6 )   $ 3     $ 3     $ 9     $ 12     $ 29     $ 11  
 
                                                            
(3)  Net foreign exchange gains (losses) included in Corporate and Other:
                                                                                 
                                                                    Year-to-date
    Q1 2006   Q1 2005   Q2 2006   Q2 2005   Q3 2006   Q3 2005   Q4 2006   Q4 2005   2006   2005
    $ (26 )   $ 13     $ 20     $ (12 )   $ 17     $ 38     $ 14     $ (20 )   $ 25     $ 19  
                                                                                 
(4)   Additional Timberlands notes:
  (a)   Hurricane related losses were $5 million in third quarter 2005 and $6 million in fourth quarter 2005.
(5)   Additional Wood Products notes:
  (a)   Refer to footnote 1 to Consolidated Earnings on page 1 regarding countervailing duty and anti-dumping costs included in Wood Products.
 
  (b)   The fourth quarter of 2006 includes $344 million of income from the refund of countervailing and anti-dumping duties.
 
  (c)   The third quarter of 2006 includes $23 million of income related to a reduction of the reserves for hardboard siding claims.
 
      The second quarter of 2005 includes an $18 million charge related to alder litigation. The third quarter of 2005 includes $9 million of income related to the reduction of reserves for alder litigation and an insurance settlement related to product liability claims.
 
  (d)   The third quarter of 2006 includes a $51 million gain on the sale of the company’s North American composites operations.
 
  (e)   The third quarter of 2006 includes charges of $7 million for the impairment of fixed assets related to production curtailments.
 
  (f)   The second quarter of 2005 includes a $6 million gain related to a tenure reallocation agreement with the British Columbia government.
(6)   Additional Cellulose Fiber and White Papers notes:
  (a)   The first and second quarters of 2006 include charges of $746 million and $3 million, respectively, for the impairment of goodwill associated with the fine paper business.
(7)   Additional Containerboard, Packaging and Recycling notes:
  (a)   The second and third quarters of 2006 include charges of $18 million and $3 million, respectively, related to the restructuring of the Containerboard, Packaging and Recycling business model.
 
  (b)   The first and fourth quarters of 2005 include charges of $12 million and $38 million, respectively, associated with the settlement of linerboard antitrust lawsuits.
 
  (c)   The third quarter of 2005 had a charge of $1 million related to hurricane damage.
(8)   Additional Real Estate and Related Assets notes:
  (a)   The first quarter of 2006 includes income of $8 million related to a warranty insurance recovery and income of $9 million related to recognition of deferred income in connection with partnership restructurings.
 
  (b)   The first, second, third and fourth quarters of 2006 include net gains (losses) on land and lot sales of $33 million, ($1) million, $0, and $110 million, respectively, or $142 million year-to-date.
 
      The fourth quarter of 2006 includes a $28 million gain on the sale of an apartment building.
 
      The first, second, third and fourth quarters of 2005 include net gains (losses) on land and lot sales of $57 million, $21 million, ($1) and $2 million, respectively, or $79 million year-to-date.
 
  (c)   The second, third, and fourth quarters of 2006 include charges for the impairment of assets of $3 million, $14 million, and $19 million, respectively, or $36 million year-to-date.
 
      The fourth quarter of 2005 includes a $33 million charge for the impairment of unimproved land.
(9)   Additional Corporate and Other notes:
  (a)   The fourth quarter of 2006 includes a $45 million pretax gain on the sale of the company’s Irish composites operations.
 
      The second quarter of 2005 includes a $64 million pretax gain on the sale of the company’s operations in coastal British Columbia and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. The third quarter of 2005 includes a $115 million gain on the sale of an investment in a joint venture. The fourth quarter of 2005 includes a $57 million gain on the sale of the company’s French composites operations.
 
  (b)   The third quarter of 2006 includes an $8 million charge to write off additional goodwill associated with the coastal British Columbia operations.
 
  (c)   The third quarter of 2006 includes a $2 million charge and the fourth quarter of 2005 includes a $15 million charge related to the impairments of investments in equity affiliates.
 
  (d)   The third quarter of 2006 includes a $9 million charge related to the acquisition of OrganicID, a research and development company.
PRELIMINARY RESULTS SUBJECT TO AUDIT

4

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
                                                                                 
    Q1   Q2   Q3   Q4   Year-to-date
    March 26,   March 27,   June 25,   June 26,   Sept. 24,   Sept. 25,   Dec. 31,   Dec. 25,   Dec. 31,   Dec. 25,
Third party sales volumes:   2006   2005   2006   2005   2006   2005   2006   2005   2006   2005
Timberlands (thousands):
                                                                                
Logs — cunits
     935       864       808       863       850       886       843       939       3,436       3,552  
 
                                                                                
Wood Products (millions):
                                                                                
Softwood lumber — board feet
     1,921       2,057       2,113       2,355       1,974       2,179       1,863       2,059       7,871       8,650  
Plywood — square feet (3/8")
     389       537       458       600       437       558       379       485       1,663       2,180  
Veneer — square feet (3/8")
     61       60       63       59       48       51       43       61       215       231  
Composite panels — square feet (3/4")
     302       299       324       317       139       308       37       305       802       1,229  
Oriented strand board — square feet (3/8")
     1,000       908       1,069       1,041       989       1,008       1,038       991       4,096       3,948  
Hardwood lumber — board feet
     103       102       110       114       100       105       99       106       412       427  
Engineered I-Joists — lineal feet
     114       108       137       138       110       125       95       113       456       484  
Engineered Solid Section — cubic feet
     9       9       11       10       9       10       7       9       36       38  
Logs — cunits (in thousands)
     55       187       46       177       26       41       42       46       169       451  
 
                                                                                
Cellulose Fiber and White Papers (thousands):
                                                                                
Pulp — air-dry metric tons
     651       629       647       587       625       653       698       633       2,621       2,502  
Paper — tons
     753       736       662       742       641       757       693       761       2,749       2,996  
Coated groundwood — tons
     52       58       59       62       59       56       64       56       234       232  
Liquid packaging board — tons
     56       60       71       65       72       64       76       69       275       258  
Paper converting — tons
     511       475       474       494       462       494       485       501       1,932       1,964  
 
                                                                                
Containerboard, Packaging and Recycling (thousands):
                                                                                
Containerboard — tons
     211       295       189       259       202       238       254       254       856       1,046  
Packaging — MSF
     18,342       17,354       19,168       18,600       18,425       18,560       18,932       19,117       74,867       73,631  
Recycling — tons
     733       692       719       695       678       665       745       676       2,875       2,728  
Kraft bags and sacks — tons
     20       23       20       22       22       22       27       22       89       89  
 
                                                                                
Real Estate and Related Assets:
                                                                                
Single-family homes sold
     1,472       1,378       1,325       1,525       906       1,608       838       1,174       4,541       5,685  
Single-family homes closed
     1,161       1,189       1,483       1,279       1,439       1,257       1,753       1,922       5,836       5,647  
Single-family homes sold but not closed at end of period
     3,105       2,561       2,947       2,807       2,414       3,158       1,499       2,410       1,499       2,410  
                                                                                 
    Q1   Q2   Q3   Q4   Year-to-date
    March 26,   March 27,   June 25,   June 26,   Sept. 24,   Sept. 25,   Dec. 31,   Dec. 25,   Dec. 31,   Dec. 25,
Total production volumes:   2006   2005   2006   2005   2006   2005   2006   2005   2006   2005
Timberlands (thousands):
                                                                                
Fee Depletion — cunits
     2,132       2,248       2,083       2,231       2,040       2,098       2,195       2,153       8,450       8,730  
 
                                                                                
Wood Products (millions):
                                                                                
Softwood lumber — board feet
     1,663       1,821       1,650       1,869       1,559       1,651       1,483       1,645       6,355       6,986  
Plywood — square feet (3/8")
     241       303       245       302       237       296       177       254       900       1,155  
Veneer — square feet (3/8") (1)
     455       517       455       529       494       486       335       447       1,739       1,979  
Composite panels — square feet (3/4")
     278       267       288       282       100       268       0       263       666       1,080  
Oriented strand board — square feet (3/8")
     1,073       1,007       1,062       1,019       1,009       1,017       1,022       1,035       4,166       4,078  
Hardwood lumber — board feet
     82       92       83       96       82       91       77       85       324       364  
Engineered I-Joists — lineal feet
     121       133       136       132       130       108       86       110       473       483  
Engineered Solid Section — cubic feet
     11       11       12       10       10       10       8       10       41       41  
 
                                                                                
Cellulose Fiber and White Papers (thousands):
                                                                                
Pulp — air-dry metric tons
     676       621       588       614       660       663       664       604       2,588       2,502  
Paper — tons (2)
     724       763       672       752       675       765       725       780       2,796       3,060  
Coated groundwood — tons
     56       55       56       59       59       60       59       60       230       234  
Liquid packaging board — tons
     61       60       75       64       73       69       73       71       282       264  
Paper converting — tons
     498       475       461       487       485       483       487       505       1,931       1,950  
 
                                                                                
Containerboard, Packaging and Recycling (thousands):
                                                                                
Containerboard — tons (3)
     1,575       1,503       1,533       1,581       1,544       1,597       1,608       1,587       6,260       6,268  
Packaging — MSF
     19,550       18,628       20,290       19,915       19,341       19,416       20,670       20,130       79,851       78,089  
Recycling — tons (4)
     1,716       1,624       1,684       1,673       1,641       1,716       1,788       1,730       6,829       6,743  
Kraft bags and sacks — tons
     19       23       20       22       18       21       25       22       82       88  
 
(1)   Veneer production represents lathe production and includes volumes that are further processed into plywood and engineered lumber products by company mills.
 
(2)   Paper production includes unprocessed rolls and converted paper volumes.
 
(3)   Containerboard production represents machine production and includes volumes that are further processed into packaging and kraft bags and sacks by company facilities.
 
(4)   Recycling production includes volumes processed in Weyerhaeuser recycling facilities that are consumed by company facilities and brokered volumes.
PRELIMINARY RESULTS SUBJECT TO AUDIT

5

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in millions)
                                         
    March 26,     June 25,     Sept 24,     Dec 31,     Dec 25,  
    2006     2006     2006     2006     2005  
Assets
                                        
Weyerhaeuser
                                        
Current assets:
                                        
Cash and short-term investments
   $ 105     $ 113     $ 114     $ 223     $ 818  
Receivables, less allowances
     1,807       1,920       1,816       1,569       1,707  
Inventories
     2,036       1,899       1,983       1,929       1,885  
Prepaid expenses
     433       427       440       437       414  
Assets of discontinued operations
     53       51       36       —       52  
 
                              
Total current assets
     4,434       4,410       4,389       4,158       4,876  
Property and equipment
     10,124       10,107       9,926       10,009       10,345  
Construction in progress
     640       607       640       407       527  
Timber and timberlands at cost, less fee stumpage charged to disposals
     3,702       3,696       3,665       3,682       3,705  
Investments in and advances to equity affiliates
     475       479       490       499       486  
Goodwill
     2,235       2,243       2,254       2,203       2,982  
Deferred pension and other assets
     1,284       1,303       1,265       1,400       1,314  
Restricted assets held by special purpose entities
     914       916       914       917       916  
Non current assets of discontinued operations
     169       168       52               171  
 
                              
 
     23,977       23,929       23,595       23,275       25,322  
 
                              
 
                                        
Real Estate and Related Assets
                                        
Cash and short-term investments
     39       36       13       20       286  
Receivables, less allowances
     143       141       145       144       42  
Real estate in process of development and for sale
     1,341       1,590       1,636       1,449       1,055  
Land being processed for development
     1,298       1,282       1,355       1,365       1,037  
Investments in unconsolidated entities, less reserves
     60       66       74       72       61  
Other assets
     353       420       422       423       296  
Assets not owned, consolidated under FIN 46R
     170       154       132       151       130  
 
                              
 
     3,404       3,689       3,777       3,624       2,907  
 
                              
Total assets
   $ 27,381     $ 27,618     $ 27,372     $ 26,899     $ 28,229  
 
                              
 
                                        
Liabilities and Shareholders’ Interest
                                        
 
                                        
Weyerhaeuser
                                        
Current liabilities:
                                        
Notes payable and commercial paper
   $ 1     $ 2     $ 222     $ 72     $ 3  
Current maturities of long-term debt
     693       551       492       494       381  
Accounts payable
     1,181       1,210       1,142       1,048       1,227  
Accrued liabilities
     1,252       1,326       1,098       1,515       1,622  
Liabilities of business held for sale
     19       15       14       —       22  
 
                              
Total current liabilities
     3,146       3,104       2,968       3,129       3,255  
Long-term debt
     6,938       7,075       7,082       7,069       7,404  
Deferred income taxes
     3,998       3,909       3,848       3,691       4,032  
Deferred pension, other postretirement benefits and other liabilities
     1,651       1,674       1,628       1,891       1,591  
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities
     763       765       762       765       764  
Non current liabilities of discontinued operations
     3       4       4               3  
 
                              
 
     16,499       16,531       16,292       16,545       17,049  
 
                              
 
                                        
Real Estate and Related Assets
                                        
Notes payable and commercial paper
     63       125       385       —       3  
Long-term debt
     878       628       601       606       851  
Other liabilities
     568       707       766       606       417  
Liabilites not owned, consolidated under FIN 46R
     144       127       107       115       109  
 
                              
 
     1,653       1,587       1,859       1,327       1,380  
 
                              
Total liabilities
     18,152       18,118       18,151       17,872       18,429  
Shareholders’ interest
     9,229       9,500       9,221       9,027       9,800  
 
                              
Total liabilities and shareholders’ interest
   $ 27,381     $ 27,618     $ 27,372     $ 26,899     $ 28,229  
 
                              
PRELIMINARY RESULTS SUBJECT TO AUDIT

6

 

STATEMENT OF CASH FLOWS
SELECTED INFORMATION (unaudited)
(in millions)
                                                                                 
    Q1     Q2     Q3     Q4     Year-to-date  
    March 26,     March 27,     June 25,     June 26,     Sept. 24,     Sept. 25,     Dec. 31,     Dec. 25,     Dec. 31,     Dec. 25,  
    2006     2005     2006     2005     2006     2005     2006     2005     2006     2005  
(Weyerhaeuser only, excludes Real Estate & Related Assets)
                                                                                
Net cash from operations
   $ (209 )   $ (203 )   $ 565     $ 723     $ 102     $ 452     $ 771     $ 648     $ 1,229     $ 1,620  
Cash paid for property and equipment
   $ (182 )   $ (117 )   $ (184 )   $ (196 )   $ (173 )   $ (220 )   $ (273 )   $ (310 )   $ (812 )   $ (843 )
Cash paid for timberlands reforestation
   $ (12 )   $ (12 )   $ (9 )   $ (6 )   $ (6 )   $ (6 )   $ (10 )   $ (8 )   $ (37 )   $ (32 )
Cash received from issuances of debt
   $ —     $ —     $ —     $ 1     $ 3     $ —     $ 1     $ 172     $ 4     $ 173  
Revolving credit facilities, notes and commercial paper borrowings, net
   $ (68 )   $ 19     $ 19     $ 23     $ 195     $ (40 )   $ (95 )   $ 73     $ 51     $ 75  
Payments on debt
   $ (158 )   $ (404 )   $ (10 )   $ (206 )   $ (58 )   $ (986 )   $ (5 )   $ (582 )   $ (231 )   $ (2,178 )
Proceeds from the sale of operations
   $ —     $ —     $ —     $ 1,107     $ 187     $ —     $ 86     $ 102     $ 273     $ 1,209  
Repurchases of common stock
   $ —     $ —     $ —     $ —     $ (332 )   $ —     $ (340 )   $ (11 )   $ (672 )   $ (11 )
PRELIMINARY RESULTS SUBJECT TO AUDIT

7