EX-99.2 3 v37817exv99w2.htm EXHIBIT 99.2 exv99w2
 

Exhibit 99.2
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS
          (in millions)
                                                                                 
    REVISED(1)                          
    Q1     Q2     Q3     Q4     Year-to-date  
    April 1,     March 26,     July 1,     June 25,     Sept. 30,     Sept. 24,     Dec. 30,     Dec. 31,     Dec. 30,     Dec. 31,  
    2007     2006     2007     2006     2007     2006     2007     2006     2007     2006  
Net sales and revenues:
                                                                               
Weyerhaeuser
  $ 3,404     $ 3,761     $ 3,775     $ 4,121     $ 3,548     $ 3,805     $ 3,222     $ 3,649     $ 13,949     $ 15,336  
Real Estate and Related Assets
    487       690       559       746       598       749       715       1,150       2,359       3,335  
 
                                                           
Total net sales and revenues
    3,891       4,451       4,334       4,867       4,146       4,554       3,937       4,799       16,308       18,671  
 
                                                           
 
                                                                               
Costs and expenses:
                                                                               
Weyerhaeuser:
                                                                               
Costs of products sold (2)
    2,785       2,947       3,085       3,190       2,845       3,038       2,660       3,007       11,375       12,182  
Depreciation, depletion and amortization
    232       233       223       231       230       231       215       252       900       947  
Selling expenses
    109       100       109       117       102       111       102       123       422       451  
General and administrative expenses
    200       235       199       205       184       214       188       241       771       895  
Research and development expenses (3)
    16       16       18       15       18       23       19       15       71       69  
Charges (reversals) for restructuring (4)
    3       (1 )     2       18       16       4       16             37       21  
Charges for closure of facilities (5)
    5       2       19       5       19       15       81       50       124       72  
Impairment of goodwill (6)
    22                         1             7             30        
Refund of countervailing and anti-dumping duties
                                              (344 )           (344 )
Other operating costs (income), net (7) (8)
    21       31       5       (26 )     1       (36 )     (34 )     (105 )     (7 )     (136 )
 
                                                           
 
    3,393       3,563       3,660       3,755       3,416       3,600       3,254       3,239       13,723       14,157  
 
                                                           
 
                                                                               
Real Estate and Related Assets:
                                                                               
Costs and operating expenses (9)
    379       482       415       553       451       539       507       764       1,752       2,338  
Depreciation and amortization
    6       3       5       4       6       10       6       8       23       25  
Selling expenses
    41       37       45       43       45       44       48       56       179       180  
General and administrative expenses
    28       30       27       35       26       30       18       29       99       124  
Other operating costs (income), net
    (4 )     (3 )     4       3       (4 )     (2 )     2     (1 )     (2 )     (3 )
Impairment of long-lived assets
                12       3       23       14       93       19       128       36  
 
                                                           
 
    450       549       508       641       547       635       674       875       2,179       2,700  
 
                                                           
Total costs and expenses
    3,843       4,112       4,168       4,396       3,963       4,235       3,928       4,114       15,869       15,902  
 
                                                           
 
                                                                               
Operating income
    48       339       166       471       183       319       9       685       406       1,814  
 
                                                                               
Interest expense and other:
                                                                               
Weyerhaeuser:
                                                                               
Interest expense incurred (10)
    (131 )     (128 )     (179 )     (129 )     (131 )     (126 )     (133 )     (136 )     (574 )     (519 )
Less: interest capitalized
    30       16       29       20       29       21       30       27       118       84  
Interest income and other
    20       19       25       15       20       17       18       19       83       70  
Equity in income (loss) of affiliates (11)
    (1 )     3       1       6       5             (3 )     (2 )     2       7  
Real Estate and Related Assets:
                                                                               
Interest expense incurred
    (12 )     (14 )     (16 )     (14 )     (16 )     (12 )     (13 )     (15 )     (57 )     (55 )
Less: interest capitalized
    12       14       16       14       16       12       13       15       57       55  
Interest income and other (12)
    3       10       1       3       1       7       (6 )     10       (1 )     30  
Equity in income of unconsolidated entities (13)
    18       21       12       15       8       14       (13 )     8       25       58  
 
                                                           
Earnings (loss) from continuing operations before income taxes
    (13 )     280       55       401       115       252       (98 )     611       59       1,544  
Income taxes (2) (14)
    (3 )     (100 )     (18 )     (92 )     (41 )     (86 )     54       (202 )     (8 )     (480 )
 
                                                           
Earnings (loss) from continuing operations
    (16 )     180       37       309       74       166       (44 )     409       51       1,064  
Earnings (loss) from discontinued operations, net of taxes (15)
    736       (756 )     (5 )     (11 )     27       58       (19 )     98       739       (611 )
 
                                                           
Net earnings (loss) (2)
  $ 720     $ (576 )   $ 32     $ 298     $ 101     $ 224     $ (63 )   $ 507     $ 790     $ 453  
 
                                                           
 
                                                                               
Basic net earnings (loss) per share:
                                                                               
Continuing operations
  $ (0.07 )   $ 0.73     $ 0.17     $ 1.24     $ 0.34     $ 0.67     $ (0.21 )   $ 1.72     $ 0.23     $ 4.35  
Discontinued operations
    3.16       (3.07 )     (0.02 )     (0.04 )     0.13       0.24       (0.09 )     0.40       3.37       (2.50 )
 
                                                           
Net earnings (loss) per share
  $ 3.09     $ (2.34 )   $ 0.15     $ 1.20     $ 0.47     $ 0.91     $ (0.30 )   $ 2.12     $ 3.60     $ 1.85  
 
                                                           
 
                                                                               
Diluted net earnings (loss) per share:
                                                                               
Continuing operations
  $ (0.07 )   $ 0.73     $ 0.17       1.23     $ 0.34     $ 0.67     $ (0.21 )   $ 1.72     $ 0.23     $ 4.33  
Discontinued operations
    3.16       (3.06 )     (0.02 )     (0.04 )     0.13       0.24     $ (0.09 )     0.40     $ 3.36       (2.49 )
 
                                                           
Net earnings (loss) per share
  $ 3.09     $ (2.33 )   $ 0.15     $ 1.19     $ 0.47     $ 0.91     $ (0.30 )   $ 2.12     $ 3.59     $ 1.84  
 
                                                           
 
                                                                               
Dividends paid per share
  $ 0.60     $ 0.50     $ 0.60     $ 0.50     $ 0.60     $ 0.60     $ 0.60     $ 0.60     $ 2.40     $ 2.20  
 
                                                           
 
                                                                               
Weighted average shares outstanding (in thousands):
                                                                               
Basic
    233,242       245,794       217,688       248,147       215,154       247,428       211,135       238,824       219,305       244,931  
Diluted
    233,242       246,970       218,743       249,194       215,828       247,900       211,135       239,525       220,277       245,780  
Common and exchangeable shares outstanding at end of period (in thousands)
    217,726       247,555       217,759       248,269       211,106       242,929       211,147       238,008       211,147       238,008  
PRELIMINARY RESULTS - SUBJECT TO AUDIT

1


 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONSOLIDATED EARNINGS

          (in millions)
(1)   The first quarter of 2007 results have been revised to reflect an adjustment to reduce the net gain on the Domtar Transaction by $35 million after-tax. This adjustment is included in discontinued operations.
 
(2)   The following adjustments were made to 2006 quarterly results to apply a new accounting pronouncement to expense planned major maintenance costs as incurred:
                                         
                                    Year-to-date  
    Q1 2006     Q2 2006     Q3 2006     Q4 2006     2006  
Cellulose Fibers
  $ (5 )   $ (10 )   $ 13     $ 2     $  
Fine Paper
    7       (10 )     6       (3 )      
Containerboard, Packaging, and Recycling
    4       (5 )     1              
 
                             
 
    6       (25 )     20       (1 )      
Income taxes
    (2 )     9       (7 )            
 
                             
Net earnings (loss)
  $ 4     $ (16 )   $ 13     $ (1 )   $  
 
                             
(3)   The third quarter of 2006 includes a $9 million charge related to the acquisition of OrganicID, a research and development company.
 
(4)   The third quarter of 2007 includes a charge of $7 million related to the restructuring of administrative functions. The fourth quarter of 2007 includes a charge of $14 million related to the restructuring of wood products operations. 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 quarter of 2007 includes a charge of $22 million for the impairment of goodwill associated with Canadian wood products distribution facilities and the fourth quarter of 2007 includes a charge of $7 million associated with U.S. wood products distribution facilities.
                                                                                 
                                                                    Year-to-date  
    Q1 2007     Q1 2006     Q2 2007     Q2 2006     Q3 2007     Q3 2006     Q4 2007     Q4 2006     2007     2006  
(7) Includes net foreign exchange gains (losses), primarily from fluctuations in Canadian and New Zealand exchange rates:
  $ 7     $ (26 )   $ 29     $ 21     $ 2     $ 17     $ 7     $ 15     $ 45     $ 27  
(8)
  (a)   The first, second and fourth quarters of 2007 include $34 million, $12 million, and $6 million, respectively, in asset impairments related to wood products facilities.
 
       
 
  (b)   The second quarter also includes a $29 million gain on the sale of a previously closed box plant site, a $40 million charge for legal settlements and a contract termination, and $6 million in additional charges related to the sale of Canadian Wood Products distribution facilities.
 
       
 
  (c)   The third quarter of 2007 includes gains of $9 million on the sale of previously closed facility sites, a $4 million charge for a legal settlement, and charges of $13 million to transition to a new IT service provider.
 
       
 
  (d)   The fourth quarter of 2007 includes a charge of $10 million for storm-related casualty losses, a gain of $27 million on the sale of an export facility, and gains of $12 million on sales of operations including our New Zealand joint venture.
 
       
 
  (e)   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.
 
       
 
  (f)   The fourth quarter of 2006 includes $95 million of income related to a reversal of the reserve for alder litigation claims.
 
       
(9)
  (a)   The fourth quarter of 2007 includes income of $11 million for a warranty reserve adjustment.
 
       
 
  (b)   The first quarter of 2006 includes income of $8 million related to a warranty insurance recovery.
(10)   The second quarter of 2007 includes a $42 million charge related to the early extinguishment of debt.
 
(11)   The third quarter of 2006 includes a $2 million charge related to the impairment of investments in equity affiliates.
 
(12)   The fourth quarter of 2007 includes loan impairments of $9 million.
 
(13)   The first, second and fourth quarters of 2007 include loan and equity impairments of $2, $1 and $19 million, respectively, or $22 million year-to-date.
(14)
  (a)   The fourth quarter of 2007 includes a one-time tax benefit of $22 million related to a reduction in the Canadian federal income tax rate and a one-time charge of $9 million related to a change in Mexican federal income tax laws.
 
       
 
  (b)   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.
(15)   Discontinued operations includes the net operating results of the operations of the fine paper business and related assets and the North American and European composite panels operations.
 
  (a)   The first quarter of 2007 includes a pre-tax gain of $629 million and related tax benefit of $92 million, the second quarter of 2007 includes pre-tax charges of $4 million, and the fourth quarter of 2007 includes a pre-tax charge of $19 million and related tax expense of $3 million related to the distribution of the fine paper business and related assets to Weyerhaeuser shareholders.
 
       
 
  (b)   The third quarter of 2007 includes pre-tax income of $43 million from the settlement of litigation associated with an Ontario fine paper mill.
 
       
 
  (c)   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.
 
       
 
  (d)   The third quarter of 2006 includes a pre-tax gain of $51 million and related tax expense of $18 million associated with the sale of the North American composite panels operations and an $8 million charge to write off additional goodwill associated with the coastal British Columbia operations.
 
       
 
  (e)   The fourth quarter of 2006 includes a pre-tax gain of $45 million and related tax expense of $4 million associated with the sale of the Irish composite panels operations.
PRELIMINARY RESULTS - SUBJECT TO AUDIT

2


 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
NET SALES AND REVENUES:
(1) (2)
          (in millions)
                                                                                 
    Q1     Q2     Q3     Q4     Year-to-date  
    April 1,     March 26,     July 1,     June 25,     Sept. 30,     Sept. 24,     Dec. 30,     Dec. 31,     Dec. 30,     Dec. 31,  
    2007     2006     2007     2006     2007     2006     2007     2006     2007     2006  
Timberlands:
                                                                               
Logs
  $ 170     $ 201     $ 172     $ 198     $ 168     $ 200     $ 149     $ 182     $ 659     $ 781  
Other products
    63       62       39       71       81       46       68       56       251       235  
 
                                                           
 
    233       263       211       269       249       246       217       238       910       1,016  
 
                                                           
 
                                                                               
Wood Products:
                                                                               
Softwood lumber
    574       782       647       857       580       733       440       625       2,241       2,997  
Plywood
    100       135       106       147       89       134       71       113       366       529  
Veneer
    9       13       14       13       13       9       8       7       44       42  
Composite panels
    24       121       24       140       20       71       14       25       82       357  
Oriented strand board
    152       287       153       273       151       203       133       176       589       939  
Hardwood lumber
    90       99       99       105       89       96       77       98       355       398  
Engineered I-Joists
    117       169       147       202       124       162       79       137       467       670  
Engineered solid section
    155       204       185       231       155       190       113       169       608       794  
Logs
    6       7       4       5       3       5       4       6       17       23  
Other products
    243       256       283       327       225       302       179       268       930       1,153  
 
                                                           
 
    1,470       2,073       1,662       2,300       1,449       1,905       1,118       1,624       5,699       7,902  
 
                                                           
 
                                                                               
Cellulose Fibers:
                                                                               
Pulp
    405       394       370       402       345       404       358       457       1,478       1,657  
Liquid packaging board
    56       46       72       62       61       59       58       62       247       229  
Other products
    21       13       28       16       30       19       28       22       107       70  
 
                                                           
 
    482       453       470       480       436       482       444       541       1,832       1,956  
 
                                                           
 
                                                                               
Fine Paper: (2)
                                                                               
Paper
    432       613             601             604             652       432       2,470  
Coated groundwood
    26       40             44             42             45       26       171  
Other products
    1       1             1             2                   1       4  
 
                                                           
 
    459       654             646             648             697       459       2,645  
 
                                                           
 
                                                                               
Containerboard, Packaging and Recycling:
                                                                               
Containerboard
    119       82       109       84       99       92       130       119       457       377  
Packaging
    951       911       1,043       1,002       1,015       997       1,010       1,021       4,019       3,931  
Recycling
    94       80       103       85       106       89       110       91       413       345  
Bags
    23       20       23       20       23       23       27       25       96       88  
Other products
    39       34       49       46       50       44       45       47       183       171  
 
                                                           
 
    1,226       1,127       1,327       1,237       1,293       1,245       1,322       1,303       5,168       4,912  
 
                                                           
 
                                                                               
Real Estate and Related Assets
    487       690       559       746       598       749       715       1,150       2,359       3,335  
 
                                                                               
Corporate and Other
    97       116       105       117       121       123       121       128       444       484  
 
                                                                               
Less: sales of discontinued operations
    (563 )     (925 )           (928 )           (844 )           (882 )     (563 )     (3,579 )
 
                                                                               
 
                                                           
 
  $ 3,891     $ 4,451     $ 4,334     $ 4,867     $ 4,146     $ 4,554     $ 3,937     $ 4,799     $ 16,308     $ 18,671  
 
                                                           
 
(1)   The fourth quarter of 2006 inlcudes 14 weeks of operations compared to 13 weeks in all other quarters.
 
(2)   First quarter 2007 results include 9 weeks of operations for the fine paper business and related assets, prior to the distribution of these assets to Weyerhaeuser shareholders.
PRELIMINARY RESULTS - SUBJECT TO AUDIT

3


 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS:
          (in millions)
                                                                                 
    REVISED(1)                          
    Q1     Q2     Q3     Q4     Year-to-date  
    April 1,     March 26,     July 1,     June 25,     Sept. 30,     Sept. 24,     Dec. 30,     Dec. 31,     Dec. 30,     Dec. 31,  
    2007     2006     2007     2006     2007     2006     2007     2006     2007     2006  
Timberlands (2) (3) (6)
  $ 175     $ 198     $ 142     $ 224     $ 165     $ 178     $ 152     $ 167     $ 634     $ 767  
Wood Products (2) (3) (7)
    (167 )     117       (123 )     131       (131 )     11       (313 )     205       (734 )     464  
Cellulose Fibers (2) (3) (5)
    22       (5 )     48       23       79       66       80       58       229       142  
Fine Paper (2) (3) (5) (8)
    20       (756 )           (20 )           68             61       20       (647 )
Containerboard, Packaging and Recycling (2) (3) (5) (9)
    67       26       112       69       104       97       99       71       382       263  
Real Estate and Related Assets (3) (10)
    58       172       64       123       60       135       22       293       204       723  
Corporate and Other (2) (3) (4) (11)
    580       (102 )     (44 )     (40 )     (16 )     (78 )     (52 )     (3 )     468       (223 )
 
                                                           
 
  $ 755     $ (350 )   $ 199     $ 510     $ 261     $ 477     $ (12 )   $ 852     $ 1,203     $ 1,489  
 
                                                           
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS
          (in millions)
(1)   The first quarter of 2007 results have been revised to reflect an adjustment to reduce the pre-tax gain on the Domtar Transaction by $53 million. This adjustment is included in Corporate and Other.
                                                                                 
                                                                    Year-to-date  
    Q1 2007     Q1 2006     Q2 2007     Q2 2006     Q3 2007     Q3 2006     Q4 2007     Q4 2006     2007     2006  
(2) Closure charges by segment:
                                                                               
Timberlands
  $     $     $     $     $     $     $     $ 1     $     $ 1  
Wood Products
    3             15       1       19       10       78       48       115       59  
Cellulose Fibers
          (1 )                 (1 )     1             (3 )     (1 )     (3 )
Fine Paper
    2                   11             3             1       2       15  
Containerboard, Packaging and Recycling
    2       2       3       5             3       4       4       9       14  
Corporate and Other
                1             1       26       (1 )           1       26  
 
                                                           
 
  $ 7     $ 1     $ 19     $ 17     $ 19     $ 43     $ 81     $ 51     $ 126     $ 112  
 
                                                           
    The above closure charges include costs incurred within the company’s discontinued operations.
                                                                                 
                                                                    Year-to-date  
    Q1 2007     Q1 2006     Q2 2007     Q2 2006     Q3 2007     Q3 2006     Q4 2007     Q4 2006     2007     2006  
(3) Share-based compensation charges (income) recognized by segment:
                                                                               
Timberlands
  $ 1     $ 1     $     $     $ 1     $     $     $     $ 2     $ 1  
Wood Products
    2       2       2             1             1       1       6       3  
Cellulose Fibers
    2       1                               1       1       3       2  
Fine Paper
                                  1                         1  
Containerboard, Packaging and Recycling
    1       2       2       (1 )     1       1       1             5       2  
Real Estate and Related Assets
    2             1       2                   1             4       2  
Corporate and Other
    14       15       5       (5 )           1       2       7       21       18  
 
                                                           
 
  $ 22     $ 21     $ 10     $ (4 )   $ 3     $ 3     $ 6     $ 9     $ 41     $ 29  
 
                                                           
                                                                                 
                                                                    Year-to-date  
    Q1 2007     Q1 2006     Q2 2007     Q2 2006     Q3 2007     Q3 2006     Q4 2007     Q4 2006     2007     2006  
(4) Net foreign exchange gains (losses) included in Corporate and Other:
  $ 7     $ (26 )   $ 34     $ 20     $ 2     $ 17     $ 6     $ 14     $ 49     $ 25  
 
                                                           
(5)   See detail of quarterly adjustments made to apply a new accounting pronouncement to expense planned major maintenance costs as incurred on page 2.
PRELIMINARY RESULTS - SUBJECT TO AUDIT

4


 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS (CONTINUED)
          (in millions)
(6)   Additional Timberlands notes:
 
    2007:
  (a)   The fourth quarter includes a charge of $10 million for storm-related casualty losses and a gain of $27 million on the sale of an export facility.
(7)   Additional Wood Products notes:
 
    2007:
  (a)   The first quarter includes charges of $22 million for the impairment of goodwill associated with Canadian distribution facilities and $34 million in asset impairments related to wood products facilities.
 
  (b)   The second quarter includes a charge of $17 million for expected settlement of litigation.
 
  (c)   The second quarter includes charges of $12 million in asset impairments related to wood products facilities and $6 million in additional charges related to the sale of Canadian distribution facilities.
 
  (d)   The third quarter includes $7 million of income from the sale of a veneer facility and a previously closed distribution center site.
 
  (e)   The third quarter includes charges of $4 million for the settlement of litigation, $4 million for restructuring activities and $1 million in goodwill impairment.
 
  (f)   The fourth quarter includes charges of $14 million for restructuring activities, $7 million in goodwill impairments and $6 million in asset impairments.
 
  (g)   The fourth quarter includes a gain of $3 million on the sale of a facility.
    2006:
  (h)   The third quarter includes $23 million of income related to a reduction of the reserves for hardboard siding claims.
 
  (i)   The third quarter includes a $51 million gain on the sale of the company’s North American composite panels operations.
 
  (j)   The third quarter includes charges of $7 million for the impairment of fixed assets related to production curtailments.
 
  (k)   The fourth quarter includes $344 million of income from the refund of countervailing and anti-dumping duties.
 
  (l)   The fourth quarter includes $95 million of income related to a reversal of the reserves for alder litigation claims.
(8)   Additional Fine Paper notes:
 
    2006:
  (a)   The first and second quarters include charges of $746 million and $3 million, respectively, for the impairment of goodwill associated with the fine paper business.
(9)   Additional Containerboard, Packaging and Recycling notes:
 
    2007:
  (a)   The second quarter includes a $29 million gain on the sale of a previously closed box plant site in California and $3 million in charges related to a fire at the Closter, NJ box plant.
 
  (b)   The third quarter includes $3 million of income related to the sale of a previously closed box plant site.
    2006:
  (c)   The second and third quarters include charges of $18 million and $3 million, respectively, related to the restructuring of the Containerboard, Packaging and Recycling business model.
(10)   Additional Real Estate and Related Assets notes:
 
    2007:
  (a)   The first, second, third and fourth quarters include net gains (losses) on land and lot sales of $3 million, $3 million, $30 million, and $79 million, respectively, or $115 million year-to-date.
 
  (b)   The second quarter includes a gain of $42 million on the sale of an apartment project.
 
  (c)   The first, second, third and fourth quarters include charges for the impairment of long-lived assets and investments of $2 million, $13 million, $23 million, and $121 million, respectively, or $159 million year-to-date.
 
  (d)   The fourth quarter of 2007 includes income of $11 million for a warranty reserve adjustment.
     2006:
  (e)   The first quarter 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.
 
  (f)   The first, second, third and fourth quarters 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.
 
  (g)   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.
 
  (h)   The fourth quarter includes a $28 million gain on the sale of an apartment building.
(11)   Additional Corporate and Other notes:
     2007:
  (a)   The first quarter includes a $629 million pre-tax gain, the second quarter includes charges of $4 million, and the fourth quarter includes charges of $19 million related to the distribution of the fine paper business and related assets to Weyerhaeuser shareholders.
 
  (b)   The second quarter includes a $23 million charge for legal settlements and a contract termination.
 
  (c)   The third quarter includes a $43 million gain on the settlement of litigation.
 
  (d)   The third quarter includes charges of $20 million for restructuring activities and the transition to a new IT service provider.
 
  (e)   The fourth quarter includes a gain of $9 million on the sale of our New Zealand joint venture.
     2006:
  (f)   The third quarter includes an $8 million charge to write off additional goodwill associated with the coastal British Columbia operations.
 
  (g)   The third quarter includes a $9 million charge related to the acquisition of OrganicID, a research and development company.
 
  (h)   The fourth quarter includes a $45 million pre-tax gain on the sale of the company’s Irish composite panels operations.
PRELIMINARY RESULTS - SUBJECT TO AUDIT

5


 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
THIRD PARTY SALES VOLUMES:
(1) (2)
          (in millions)
                                                                                 
    Q1   Q2   Q3   Q4   Year-to-date
    April 1,   March 26,   July 1,   June 25,   Sept. 30,   Sept. 24,   Dec. 30,   Dec. 31,   Dec. 30,   Dec. 31,
    2007   2006   2007   2006   2007   2006   2007   2006   2007   2006
Timberlands (thousands):
                                                                               
Logs - cunits
    750       935       762       808       805       850       764       843       3,081       3,436  
 
                                                                               
Wood Products (millions):
                                                                               
Softwood lumber - board feet
    1,657       1,921       1,805       2,113       1,654       1,974       1,422       1,863       6,538       7,871  
Plywood - square feet (3/8”)
    310       389       305       458       240       437       194       379       1,049       1,663  
Veneer - square feet (3/8”)
    57       61       82       63       73       48       50       43       262       215  
Composite panels - square feet (3/4”)
    36       302       35       324       29       139       21       37       121       802  
Oriented strand board - square feet (3/8”)
    942       1,000       899       1,069       835       989       790       1,038       3,466       4,096  
Hardwood lumber - board feet
    89       103       99       110       93       100       82       99       363       412  
Engineered I-Joists - lineal feet
    82       114       108       137       92       110       56       95       338       456  
Engineered solid section - cubic feet
    7       9       10       11       8       9       5       7       30       36  
Logs - cunits (in thousands)
    46       55       33       46       34       26       30       42       143       169  
 
                                                                               
Cellulose Fibers (thousands):
                                                                               
Pulp - air-dry metric tons
    594       651       524       647       470       625       482       698       2,070       2,621  
Liquid packaging board - tons
    67       56       82       71       72       72       65       76       286       275  
 
                                                                               
Fine Paper (thousands):(2)
                                                                               
Paper - tons
    461       753             662             641             693       461       2,749  
Coated groundwood - tons
    38       52             59             59             64       38       234  
Paper converting - tons
    318       511             474             462             485       318       1,932  
 
                                                                               
Containerboard, Packaging and Recycling (thousands):
                                                                               
Containerboard - tons
    259       211       230       189       205       202       263       254       957       856  
Packaging - MSF
    17,754       18,342       18,965       19,168       18,751       18,425       18,102       18,932       73,572       74,867  
Recycling - tons
    654       733       656       719       632       678       638       745       2,580       2,875  
Kraft bags and sacks - tons
    25       20       23       20       25       22       26       27       99       89  
 
                                                                               
Real Estate and Related Assets:
                                                                               
Single-family homes sold
    1,684       1,472       1,139       1,325       734       906       595       838       4,152       4,541  
Single-family homes closed
    976       1,161       1,062       1,483       1,145       1,439       1,244       1,753       4,427       5,836  
Single-family homes sold but not closed at end of period
    2,207       3,105       2,284       2,947       1,873       2,414       1,224       1,499       1,224       1,499  
 
(1)   The fourth quarter of 2006 inlcudes 14 weeks of operations compared to 13 weeks in all other quarters.
 
(2)   First quarter 2007 results include 9 weeks of operations for fine paper and related assets, prior to the distribution of these assets to Weyerhaeuser shareholders.
PRELIMINARY RESULTS - SUBJECT TO AUDIT

6


 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
TOTAL PRODUCTION VOLUMES:
(1) (2)
          (in millions)
                                                                                         
    Q1   Q2   Q3   Q4   Year-to-date        
    April 1,   March 26,   July 1,   June 25,   Sept. 30,   Sept. 24,   Dec. 30,   Dec. 31,   Dec. 30,   Dec. 31,        
    2007   2006   2007   2006   2007   2006   2007   2006   2007   2006        
Timberlands (thousands):
                                                                                       
Fee depletion - cunits
    2,140       2,132       2,038       2,083       2,029       2,040       1,937       2,195       8,144       8,450          
 
                                                                                       
Wood Products (millions):
                                                                                       
Softwood lumber - board feet
    1,427       1,663       1,451       1,650       1,405       1,559       1,207       1,483       5,490       6,355          
Plywood - square feet (3/8”)
    114       241       115       245       110       237       84       177       423       900          
Veneer - square feet (3/8”) (3)
    298       455       338       455       297       494       217       335       1,150       1,739          
Composite panels - square feet (3/4”)
          278             288             100                         666          
Oriented strand board - square feet (3/8”)
    968       1,073       847       1,062       834       1,009       779       1,022       3,428       4,166          
Hardwood lumber - board feet
    73       82       75       83       80       82       66       77       294       324          
Engineered I-Joists - lineal feet
    87       121       114       136       91       130       47       86       339       473          
Engineered solid section - cubic feet
    6       11       9       12       8       10       5       8       28       41          
 
                                                                                       
Cellulose Fibers (thousands):
                                                                                       
Pulp - air-dry metric tons
    539       676       419       588       445       660       448       664       1,851       2,588          
Liquid packaging board - tons
    60       61       77       75       72       73       74       73       283       282          
 
                                                                                       
Fine Paper (thousands): (2) Paper - tons (4)
    444       724             672             675             725       444       2,796          
Coated groundwood - tons
    43       56             56             59             59       43       230          
Paper converting - tons
    318       498             461             485             487       318       1,931          
 
                                                                                       
Containerboard, Packaging and Recycling (thousands):
                                                                                       
Containerboard - tons (5)
    1,515       1,575       1,506       1,533       1,575       1,544       1,510       1,608       6,106       6,260          
Packaging - MSF
    19,007       19,550       19,721       20,290       19,547       19,341       18,946       20,670       77,221       79,851          
Recycling - tons (6)
    1,619       1,716       1,589       1,684       1,838       1,641       1,609       1,788       6,655       6,829          
Kraft bags and sacks - tons
    23       19       23       20       23       18       24       25       93       82          
 
(1)   The fourth quarter of 2006 inlcudes 14 weeks of operations compared to 13 weeks in all other quarters.
 
(2)   First quarter 2007 results include 9 weeks of operations for fine paper and related assets, prior to the distribution of these assets to Weyerhaeuser shareholders.
 
(3)   Veneer production represents lathe production and includes volumes that are further processed into plywood and engineered lumber products by company mills.
 
(4)   Paper production includes unprocessed rolls and converted paper volumes.
 
(5)   Containerboard production represents machine production and includes volumes that are further processed into packaging and kraft bags and sacks by company facilities.
 
(6)   Recycling production includes volumes processed in Weyerhaeuser recycling facilities that are consumed by company facilities and brokered volumes.
PRELIMINARY RESULTS - SUBJECT TO AUDIT

7


 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in millions)
                                         
    April 1,     July 1,     Sept. 30,     Dec. 30,     Dec. 31,  
    2007     2007     2007     2007     2006  
Assets
                                       
     
                                         
Weyerhaeuser    
                                           
Current assets:    
                                           
Cash and cash equivalents
  $ 1,172     $ 208     $ 72     $ 93     $ 223  
Receivables, less allowances
    1,394       1,508       1,419       1,333       1,183  
Inventories
    1,437       1,308       1,323       1,255       1,355  
Prepaid expenses
    356       378       406       333       385  
Assets held for sale
    114                           105  
Current assets of discontinued operations
                            870  
 
                             
Total current assets
    4,473       3,402       3,220       3,014       4,121  
Property and equipment
    6,836       6,761       6,880       6,817       7,061  
Construction in progress
    467       544       412       442       395  
Timber and timberlands at cost, less fee stumpage charged to disposals
    3,705       3,721       3,736       3,769       3,681  
Investments in and advances to equity affiliates
    498       510       497       356       499  
Goodwill
    2,158       2,181       2,200       2,207       2,185  
Deferred pension and other assets
    1,378       1,470       1,525       2,505       1,368  
Restricted assets held by special purpose entitites
    915       916       915       916       917  
Noncurrent assets of discontinued operations
                              3,011  
 
                             
 
    20,430       19,505       19,385       20,026       23,238  
 
                             
 
                                       
Real Estate and Related Assets
                                       
Cash and cash equivalents
    13       7       8       21       20  
Receivables, less allowances
    77       75       72       63       144  
Real estate in process of development and for sale
    1,540       1,561       1,587       1,270       1,449  
Land being processed for development
    1,427       1,476       1,528       1,622       1,365  
Investments in unconsolidated entities, less reserves
    81       83       77       58       72  
Other assets
    396       383       423       473       423  
Consolidated assets not owned
    264       287       277       273       151  
 
                             
 
    3,798       3,872       3,972       3,780       3,624  
 
                             
Total assets
  $ 24,228     $ 23,377     $ 23,357     $ 23,806     $ 26,862  
 
                             
 
                                       
Liabilities
                                       
 
                                       
Weyerhaeuser
                                       
Current liabilities:
                                       
Notes payable and commercial paper
  $ 163     $ 92     $ 92     $ 54     $ 72  
Current maturities of long-term debt
    70       63       262       507       488  
Accounts payable
    920       1,010       894       869       948  
Accrued liabilities
    1,220       1,145       1,185       1,177       1,363  
Current liabilities of discontinued operations
                            258  
 
                             
Total current liabilities
    2,373       2,310       2,433       2,607       3,129  
Long-term debt
    6,849       5,980       6,428       6,059       7,069  
Deferred income taxes
    2,886       2,895       2,852       3,290       3,011  
Deferred pension, other postretirement benefits and other liabilities
    1,730       1,814       1,819       1,669       1,759  
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities
    763       765       764       765       765  
Noncurrent liabilities of discontinued operations
                            717  
 
                             
 
    14,601       13,764       14,296       14,390       16,450  
 
                             
Real Estate and Related Assets
                                       
Notes payable and commercial paper
    427       412                    
Long-term debt
    605       605       900       775       606  
Other liabilities
    565       539       497       432       606  
Consolidated liabilites not owned
    232       246       237       228       115  
 
                             
 
    1,829       1,802       1,634       1,435       1,327  
 
                             
 
                                       
Shareholders’ Interest
                                       
 
                                       
Total liabilities
    16,430       15,566       15,930       15,825       17,777  
Shareholders’ interest
    7,798       7,811       7,427       7,981       9,085  
 
                             
Total liabilities and shareholders’ interest
  $ 24,228     $ 23,377     $ 23,357     $ 23,806     $ 26,862  
 
                             
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
STATEMENT OF CASH FLOWS
SELECTED INFORMATION (unaudited)
(in millions)
(Weyerhaeuser only,
excludes Real Estate &
Related Assets)
                                                                                 
    Q1   Q2   Q3   Q4   Year-to-date
    April 1,   March 26,   July 1,   June 25,   Sept. 30,   Sept. 24,   Dec. 30,   Dec. 31,   Dec. 30,   Dec. 31,
  2007   2006   2007   2006   2007   2006   2007   2006   2007   2006
Net cash from operations
  $ (187 )   $ (210 )   $ 171     $ 566     $ 285     $ 252     $ 411     $ 940     $ 680     $ 1,548  
Cash paid for property and equipment
  $ (114 )   $ (182 )   $ (140 )   $ (184 )   $ (176 )   $ (173 )   $ (232 )   $ (273 )   $ (662 )   $ (812 )
Cash paid for timberlands reforestation
  $ (12 )   $ (12 )   $ (12 )   $ (9 )   $ (8 )   $ (6 )   $ (12 )   $ (10 )   $ (44 )   $ (37 )
Cash received from issuances of debt
  $     $     $     $     $ 451     $ 3     $     $ 1     $ 451     $ 4  
Revolving credit facilities, notes and commercial paper borrowings, net
  $ (162 )   $ (68 )   $ 194     $ 19     $ 148     $ 195     $ (158 )   $ (95 )   $ 22     $ 51  
Payments on debt
  $ (466 )   $ (158 )   $ (1,090 )   $ (10 )   $ (54 )   $ (58 )   $ (3 )   $ (5 )   $ (1,613 )   $ (231 )
Proceeds from the sale of operations
  $ 1,350     $     $ 100     $     $ 7     $ 187     $ 172     $ 86     $ 1,629     $ 273  
Repurchases of common stock
  $     $     $ (22 )   $     $ (441 )   $ (332 )   $ (10 )   $ (340 )   $ (473 )   $ (672 )
PRELIMINARY RESULTS - SUBJECT TO AUDIT

8