EX-99.2 3 v41815exv99w2.htm EXHIBIT 99.2 exv99w2
EXHIBIT 99.2
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS
     (in millions)
                                                                                   
            REVISED(1)                                 REVISED(1)                          
    Q1       Q2       Year-to-date       Q3       Q4       Year-to-date  
    March 30,     April 1,       June 29,     July 1,       June 29,     July 1,       Sept. 30,       Dec. 30,       Dec. 30,  
    2008     2007       2008     2007       2008     2007       2007       2007       2007  
Net sales and revenues:
                                                                                  
Weyerhaeuser
   $ 1,671     $ 2,136       $ 1,820     $ 2,400       $ 3,491     $ 4,536       $ 2,199       $ 1,839       $ 8,574  
Real Estate
     371       487         354       559         725       1,046         598         715         2,359  
                                               
Total net sales and revenues
     2,042       2,623         2,174       2,959         4,216       5,582         2,797         2,554         10,933  
                                               
 
                                                                                  
Costs and expenses:
                                                                                  
Weyerhaeuser:
                                                                                  
Costs of products sold
     1,399       1,757         1,518       1,978         2,917       3,735         1,776         1,553         7,064  
Depreciation, depletion and amortization
     145       154         146       148         291       302         155         140         597  
Selling expenses
     59       70         57       69         116       139         61         73         273  
General and administrative expenses
     148       164         125       157         273       321         143         149         613  
Research and development expenses
     17       16         18       18         35       34         18         19         71  
Charges for restructuring (2)
     1       3         39       1         40       4         16         15         35  
Charges for closure of facilities (3)
     53       3         30       16         83       19         19         78         116  
Impairment of goodwill (4)
     3       22         2       —         5       22         1         7         30  
Other operating costs (income), net (5) (6)
     46       26         (16 )     33         30       59         5         (34 )       30  
                                               
 
     1,871       2,215         1,919       2,420         3,790       4,635         2,194         2,000         8,829  
                                               
 
                                                                                  
Real Estate:
                                                                                  
Costs and operating expenses
     327       379         321       415         648       794         451         507         1,752  
Depreciation and amortization
     4       6         5       5         9       11         6         6         23  
Selling expenses
     36       41         37       45         73       86         45         48         179  
General and administrative expenses
     29       28         27       27         56       55         26         18         99  
Other operating costs (income), net
     (6 )     (4 )       6       4         —       —         (4 )       2         (2 )
Impairment of long-lived assets
     33       —         246       12         279       12         23         93         128  
                                               
 
     423       450         642       508         1,065       958         547         674         2,179  
                                               
Total costs and expenses
     2,294       2,665         2,561       2,928         4,855       5,593         2,741         2,674         11,008  
                                               
 
                                                                                  
Operating income (loss)
     (252 )     (42 )       (387 )     31         (639 )     (11 )       56         (120 )       (75 )
 
                                                                                  
Interest expense and other:
                                                                                  
Weyerhaeuser:
                                                                                  
Interest expense incurred (7)
     (132 )     (131 )       (126 )     (178 )       (258 )     (309 )       (131 )       (132 )       (572 )
Less: interest capitalized
     24       30         21       29         45       59         29         30         118  
Interest income and other (8)
     13       20         117       25         130       45         20         18         83  
Equity in income (loss) of affiliates
     (5 )     (1 )       3       —         (2 )     (1 )       1         (5 )       (5 )
Real Estate:
                                                           —                      
Interest expense incurred
     (12 )     (12 )       (14 )     (17 )       (26 )     (29 )       (15 )       (13 )       (57 )
Less: interest capitalized
     12       12         14       17         26       29         15         13         57  
Interest income and other
     1       3         (4 )     1         (3 )     4         1         (6 )       (1 )
Equity in income (loss) of unconsolidated entities
     (4 )     19         12       13         8       32         8         15         55  
Charge for impairments of WRI assets
     (19 )     (1 )       (57 )     (1 )       (76 )     (2 )       —         (28 )       (30 )
                                               
Loss from continuing operations before income taxes
     (374 )     (103 )       (421 )     (80 )       (795 )     (183 )       (16 )       (228 )       (427 )
Income taxes (9)
     139       38         214       31         353       69         11         96         176  
                                               
Income (loss) from continuing operations
     (235 )     (65 )       (207 )     (49 )       (442 )     (114 )       (5 )       (132 )       (251 )
 
                                                                                  
Earnings from discontinued operations, net of taxes (10)
     87       785         111       81         198       866         106         69         1,041  
                                               
Net earnings (loss)
   $ (148 )   $ 720       $ (96 )   $ 32       $ (244 )   $ 752       $ 101       $ (63 )     $ 790  
                                               
 
                                                                                  
Basic net earnings (loss) per share:
                                                                                  
Continuing operations
   $ (1.11 )   $ (0.28 )     $ (0.98 )   $ (0.22 )     $ (2.10 )   $ (0.50 )     $ (0.02 )     $ (0.63 )     $ (1.15 )
Discontinued operations
     0.41       3.37         0.53       0.37         0.94       3.84         0.49         0.33         4.75  
                                               
Net earnings (loss) per share
   $ (0.70 )   $ 3.09       $ (0.45 )   $ 0.15       $ (1.16 )   $ 3.34       $ 0.47       $ (0.30 )     $ 3.60  
                                               
 
                                                                                  
Diluted net earnings (loss) per share:
                                                                                  
Continuing operations
   $ (1.11 )   $ (0.28 )     $ (0.98 )   $ (0.22 )     $ (2.10 )     (0.50 )     $ (0.02 )     $ (0.63 )     $ (1.15 )
Discontinued operations
     0.41       3.37         0.53       0.37         0.94       3.84         0.49         0.33         4.75  
                                               
Net earnings (loss) per share
   $ (0.70 )   $ 3.09       $ (0.45 )   $ 0.15       $ (1.16 )   $ 3.34       $ 0.47       $ (0.30 )     $ 3.60  
                                               
 
                                                                                  
Dividends paid per share
   $ 0.60     $ 0.60       $ 0.60     $ 0.60       $ 1.20     $ 1.20       $ 0.60       $ 0.60       $ 2.40  
                                               
 
                                                                                  
Weighted average shares outstanding
(in thousands):
                                                                                  
Basic
     211,195       233,242         211,262       217,688         211,228       225,465         215,154         211,135         219,305  
Diluted
     211,195       233,242         211,262       217,688         211,228       225,465         215,154         211,135         219,305  
 
                                                                                  
Common and exchangeable shares outstanding at end of period (in thousands)
     211,243       217,726         211,279       217,759         211,279       217,759         211,106         211,147         211,147  
PRELIMINARY RESULTS — SUBJECT TO AUDIT

1

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONSOLIDATED EARNINGS
     (in millions)
 
(1)   First quarter 2007 results were 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)   See detail of restructuring charges by segment on page 4.
 
(3)   See detail of closure charges by segment on page 4.
 
(4)   The first quarter of 2007 includes a charge of $22 million for the impairment of goodwill associated with Canadian Wood Products distribution facilities. Goodwill impairment charges recognized in the third and fourth quarters of 2007 and the first and second quarters of 2008 were associated with U.S. Wood Products distribution facilities.
 
(5)   Includes net foreign exchange gains (losses), primarily from fluctuations in Canadian and New Zealand exchange rates:
                                                                                   
                                        Year-to-date                         Year-to-date
    Q1 2008   Q1 2007     Q2 2008   Q2 2007     Q2 2008   Q2 2007     Q3 2007     Q4 2007     Q4 2007
 
   $ (11 )   $ 7       $ 3     $ 29       $ (8 )   $ 36       $ 2       $ 1       $ 39  
 
(6)   (a) The first quarter of 2008 includes charges of $18 million related to OSB litigation and $17 million for a change in accounting for our environmental remediation reserves.
 
    (b) The second quarter of 2008 includes a gain of $52 million related to changes in postretirement benefit plans for salaried employees and a gain of $7 million on sale of properties.
 
    (c) The first and second quarters of 2008 include charges of $5 million and $23 million, respectively, for the impairment of previously capitalized interest on Real Estate assets.
 
    (d) 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.
 
    (e) The second quarter of 2007 includes 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.
 
    (f) 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.
 
    (g) 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.
 
(7)   The second quarter of 2007 includes a $42 million charge related to the early extinguishment of debt.
 
(8)   The second quarter of 2008 includes an estimated pre-tax gain of $101 million from the restructuring of our investments in Uruguay.
 
(9)   (a) The second quarter of 2008 includes a $14 million tax benefit related to the release of FIN 48 tax liabilities.
 
    (b) 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.
 
(10)   Discontinued operations include the net operating results of the Containerboard, Packaging and Recycling business and our Australia operations for all periods presented. Discontinued operations for the first quarter of 2007 also include the net operating results of the Fine Paper business and related assets.
 
  Results of discontinued operations exclude certain general corporate overhead costs that have been allocated to and are included in contribution to earnings for the operating segments.
 
    Discontinued operations also include an allocation of net pension and postretirement income or expense. Discontinued operations related to Containerboard, Packaging and Recycling do not include any allocation of interest expense.
 
    Summary results of discontinued operations:
                                                                                   
    Q1     Q2     Year-to-date     Q3     Q4     Year-to-date
    March 30,   April 1,     June 29,   July 1,     June 29,   July 1,     Sept. 30,     Dec. 30,     Dec. 30,
    2008   2007     2008   2007     2008   2007     2007     2007     2007
Net sales
   $ 1,351     $ 1,831       $ 1,436     $ 1,375       $ 2,787     $ 3,206       $ 1,349       $ 1,383       $ 5,938  
Net earnings from operations (after-tax)
   $ 87     $ 64       $ 111     $ 85       $ 198     $ 149       $ 106       $ 91       $ 346  
Net gain (loss) on divestiture (after-tax)
   $ —     $ 721       $ —     $ (4 )     $ —     $ 717       $ —       $ (22 )     $ 695  
Net earnings from discontinued operations
   $ 87     $ 785       $ 111     $ 81       $ 198     $ 866       $ 106       $ 69       $ 1,041  
 
    (a) The second quarter of 2007 includes a $29 million gain on the sale of a previously closed box plant site.
 
  (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 fourth quarter of 2007 includes a one-time charge of $9 million related to a change in Mexican federal income tax laws.
PRELIMINARY RESULTS — SUBJECT TO AUDIT

2

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
NET SALES AND REVENUES:
     (in millions)
                                                                                   
    Q1       Q2       Year-to-date       Q3       Q4       Year-to-date  
    March 30,     April 1,       June 29,     July 1,       June 29,     July 1,       Sept. 30,       Dec. 30,       Dec. 30,  
    2008     2007       2008     2007       2008     2007       2007       2007       2007  
Timberlands:
                                                                                  
Logs
   $ 143     $ 170       $ 172     $ 172       $ 315     $ 342       $ 168       $ 149       $ 659  
Other products
     51       63         42       39         93       102         81         68         251  
 
                                                                
 
     194       233         214       211         408       444         249         217         910  
 
                                                                
Wood Products:
                                                                                  
Softwood lumber
     361       574         403       647         764       1,221         580         440         2,241  
Engineered solid section
     105       155         121       185         226       340         155         113         608  
Engineered I-Joists
     73       117         86       147         159       264         124         79         467  
Oriented strand board
     105       152         110       153         215       305         151         133         589  
Plywood
     57       100         59       106         116       206         89         71         366  
Hardwood lumber
     80       90         80       99         160       189         89         77         355  
Other products produced
     49       50         51       64         100       114         61         51         226  
Other products purchased for resale
     136       232         161       261         297       493         200         154         847  
 
                                                                
 
     966       1,470         1,071       1,662         2,037       3,132         1,449         1,118         5,699  
 
                                                                
Cellulose Fibers:
                                                                                  
Pulp
     345       405         355       370         700       775         345         358         1,478  
Liquid packaging board
     67       56         74       72         141       128         61         58         247  
Other products
     33       21         31       28         64       49         30         28         107  
 
                                                                
 
     445       482         460       470         905       952         436         444         1,832  
 
                                                                
 
                                                                                  
Fine Paper: (1)
                                                                                  
Paper
     —       432         —       —         —       432         —         —         432  
Coated groundwood
     —       26         —       —         —       26         —         —         26  
Other products
     —       1         —       —         —       1         —         —         1  
 
                                                                
 
     —       459         —       —         —       459         —         —         459  
 
                                                                
 
                                                                                  
Containerboard, Packaging and Recycling:
                                                                                  
Containerboard
     141       119         118       109         259       228         99         130         457  
Packaging
     987       951         1,074       1,043         2,061       1,994         1,015         1,010         4,019  
Recycling
     113       94         121       103         234       197         106         110         413  
Bags
     23       23         24       23         47       46         23         27         96  
Other products
     33       39         38       49         71       88         50         45         183  
 
                                                                
 
     1,297       1,226         1,375       1,327         2,672       2,553         1,293         1,322         5,168  
 
                                                                
 
                                                                                  
Real Estate
     371       487         354       559         725       1,046         598         715         2,359  
 
                                                                                  
Corporate and Other
     120       97         136       105         256       202         121         121         444  
 
                                                                                  
Less: sales of discontinued operations
     (1,351 )     (1,831 )       (1,436 )     (1,375 )       (2,787 )     (3,206 )       (1,349 )       (1,383 )       (5,938 )
 
                                                                
 
   $ 2,042     $ 2,623       $ 2,174     $ 2,959       $ 4,216     $ 5,582       $ 2,797       $ 2,554       $ 10,933  
 
                                                                
 
(1)   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)                                 REVISED(1)                          
    Q1       Q2       Year-to-date       Q3       Q4       Year-to-date  
    March 30,     April 1,       June 29,     July 1,       June 29,     July 1,       Sept. 30,       Dec. 30,       Dec. 30,  
    2008     2007       2008     2007       2008     2007       2007       2007       2007  
Timberlands (2) (3) (4) (6) (7)
   $ 116     $ 175       $ 108     $ 142       $ 224     $ 317       $ 165       $ 152       $ 634  
Wood Products (2) (3) (4) (6) (8)
     (277 )     (167 )       (164 )     (123 )       (441 )     (290 )       (131 )       (313 )       (734 )
Cellulose Fibers (2) (3) (4) (6)
     56       22         42       48         98       70         79         80         229  
Fine Paper (2) (3) (6)
     —       20         —       —         —       20         —         —         20  
Containerboard, Packaging and Recycling (2) (3) (4) (6) (9)
     89       67         105       112         194       179         104         99         382  
Real Estate (4) (6) (10)
    (74 )     58         (337 )     64         (411 )     122         60         22         204  
Corporate and Other (2) (3) (4) (5) (6) (11)
     (45 )     580         106       (44 )       61       536         (16 )       (52 )       468  
 
                                                                
 
   $ (135 )   $ 755       $ (140 )   $ 199       $ (275 )   $ 954       $ 261       $ (12 )     $ 1,203  
 
                                                                
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS
     (in millions)
 
(1)   First quarter 2007 results were 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.
 
(2)   Restructuring charges (reversals) by segment:
                                                                                   
                                        Year-to-date                           Year-to-date  
    Q1 2008     Q1 2007       Q2 2008     Q2 2007       Q2 2008     Q2 2007       Q3 2007       Q4 2007       2007  
Timberlands
   $ —     $ —       $ —     $ 1       $ —     $ 1       $ 2       $ (2 )     $ 1  
Wood Products
     —       2         4       —         4       2         4         14         20  
Cellulose Fibers
     —       —         —       —         —       —         3         —         3  
Fine Paper
     —       —         —       —         —       —         —         —         —  
Containerboard, Packaging and Recycling
     —       —         —       1         —       1         1         —         2  
Corporate and Other
     1       1         35       —         36       1         6         4         11  
 
                                                                
 
   $ 1     $ 3       $ 39     $ 2       $ 40     $ 5       $ 16       $ 16       $ 37  
 
                                                                
    The above restructuring charges include costs incurred within the company’s discontinued operations.
 
(3)   Closure charges (reversals) by segment:
                                                                                   
                                        Year-to-date                           Year-to-date  
    Q1 2008     Q1 2007       Q2 2008     Q2 2007       Q2 2008     Q2 2007       Q3 2007       Q4 2007       2007  
Timberlands
   $ —     $ —       $ —     $ —       $ —     $ —       $ —       $ —       $ —  
Wood Products
     53       3         30       15         83       18         19         78         115  
Cellulose Fibers
     —       —         —       —         —       —         (1 )       —         (1 )
Fine Paper
     —       2         —       —         —       2         —         —         2  
Containerboard, Packaging and Recycling
     8       2         3       3         11       5         —         4         9  
Corporate and Other
     —       —         —       1         —       1         1         (1 )       1  
 
                                                                
 
   $ 61     $ 7       $ 33     $ 19       $ 94     $ 26       $ 19       $ 81       $ 126  
 
                                                                
    The above closure charges include costs incurred within the company’s discontinued operations.
 
(4)   Share-based compensation charges recognized by segment:
                                                                                   
                                        Year-to-date                           Year-to-date  
    Q1 2008     Q1 2007       Q2 2008     Q2 2007       Q2 2008     Q2 2007       Q3 2007       Q4 2007       2007  
Timberlands
   $ 1     $ 1       $ —     $ —       $ 1     $ 1       $ 1       $ —       $ 2  
Wood Products
     3       2         2       2         5       4         1         1         6  
Cellulose Fibers
     2       2         —       —         2       2         —         1         3  
Containerboard, Packaging and Recycling
     3       1         2       2         5       3         1         1         5  
Real Estate
     2       2         1       1         3       3         —         1         4  
Corporate and Other
     15       14         2       5         17       19         —         2         21  
 
                                                                
 
   $ 26     $ 22       $ 7     $ 10       $ 33     $ 32       $ 3       $ 6       $ 41  
 
                                                                
(5)   Net foreign exchange gains (losses) included in Corporate and Other:
                                                                         
                                    Year-to-date                     Year-to-date  
    Q1 2008     Q1 2007     Q2 2008     Q2 2007     Q2 2008     Q2 2007     Q3 2007     Q4 2007     2007  
 
   $ (11 )   $ 7     $ 4     $ 35     $ (7 )   $ 42     $ 2     $ —     $ 44  
 
                                                      
(6)   Effective with the first quarter of 2008, the company’s pension credits (costs) are no longer being allocated to the Weyerhaeuser operating segments. Total pension credits (costs) are reported in the Corporate and Other segment. Pension credits (costs) related to real estate operations are reported in the Real Estate segment.
 
    Pension credits (costs) recognized by segment:
                                                                                   
                                        Year-to-date                           Year-to-date  
    Q1 2008     Q1 2007       Q2 2008     Q2 2007       Q2 2008     Q2 2007       Q3 2007       Q4 2007       2007  
Timberlands
   $ —     $ 1       $ —     $ 1       $ —     $ 2       $ 1       $ —       $ 3  
Wood Products
     —       5         —       11         —       16         13         10         39  
Cellulose Fibers
     —       —         —       4         —       4         2         2         8  
Fine Paper
     —       1         —       —         —       1         —         —         1  
Containerboard, Packaging and Recycling
     —       3         —       10         —       13         9         8         30  
Real Estate
     1       —         —       —         1       —         (1 )       —         (1 )
Corporate and Other
     38       —         29       1         67       1         —         —         1  
 
                                                                
 
   $ 39     $ 10       $ 29     $ 27       $ 68     $ 37       $ 24       $ 20       $ 81  
 
                                                                
PRELIMINARY RESULTS — SUBJECT TO AUDIT

4

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS (CONTINUED)
     (in millions)
(7)   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.
(8)   Additional Wood Products notes:
2008:
(a) The first quarter includes a charge of $18 million for a reserve for litigation.
(b) The second quarter includes a gain of $7 million on the sale of property.
2007:
(c) 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.
(d) The second quarter includes a charge of $17 million for the settlement of litigation, 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.
(e) The third quarter includes $7 million of income from the sale of a veneer facility and a previously closed distribution center site, charges of $4 million for the settlement of litigation and $4 million for restructuring activities.
(f) The fourth quarter includes charges of $14 million for restructuring activities, $7 million in goodwill impairments, $6 million in asset impairments and a gain of $3 million on the sale of a facility.
(9)   Additional Containerboard, Packaging and Recycling notes:
2008:
(a) The first quarter includes an $11 million benefit resulting from the cessation of depreciation on assets held for sale and $6 million of insurance proceeds related to a fire at the Closter, NJ box plant.
(b) The second quarter includes a $72 million benefit resulting from the cessation of depreciation on assets held for sale, income of $5 million from the sale of property, and charges of $6 million for litigation expenses.
2007:
(c) 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.
(d) The third quarter includes $3 million of income related to the sale of a previously closed box plant site.
(10)   Additional Real Estate notes:
2008:
(a) The first quarter includes charges of $33 million for the impairment of homebuilding assets and $19 million related to WRI investment activities.
(b) The first and second quarters include net gains (losses) on land and lot sales of $(2) million and $0 million, respectively, or $(2) million year-to-date.
(c) The second quarter includes charges of $254 million for the impairment of homebuilding and land-related assets and $57 million related to WRI investment activities.
2007:
(d) The first, second, third, and fourth quarters include net gains on land and lot sales of $3 million, $3 million, $30 million, and $79 million, respectively, or $115 million year-to-date.
(e) The second quarter includes a gain of $42 million on the sale of an apartment project.
(f) 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.
(11)   Additional Corporate and Other notes:
2008:
(a) The first quarter includes charges of $17 million for a change in accounting for environmental remediation liability reserves and $5 million for the impairment of interest that was previously capitalized on Real Estate assets.
(b) The second quarter includes a $101 million estimated pre-tax gain from the restructuring of our investments in Uruguay, a $52 million pre-tax gain from changes in our postretirment benefit plans covering salaried employees, a charge of $35 million for corporate restructuring activities, and a charge of $23 million for the impairment of interest that was previously capitalized on Real Estate assets.
2007:
(c) 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.
(d) The second quarter includes a $23 million charge for legal settlements and a contract termination.
(e) The third quarter includes a $43 million gain on the settlement of litigation and charges of $20 million for restructuring activities and the transition to a new IT service provider.
(f) The fourth quarter includes a gain of $9 million on the sale of our New Zealand joint venture.
PRELIMINARY RESULTS — SUBJECT TO AUDIT

5

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
THIRD PARTY SALES VOLUMES:
     (in millions)
                                                                                   
    Q1     Q2     Year-to-date     Q3     Q4     Year-to-date
    March 30,   April 1,     June 29,   July 1,     June 29,   July 1,     Sept. 30,     Dec. 30,     Dec. 30,
    2008   2007     2008   2007     2008   2007     2007     2007     2007
Timberlands (thousands):
                                                                                  
Logs — cunits
     781       750         866       762         1,647       1,512         805         764         3,081  
 
                                                                                  
Wood Products (millions):
                                                                                  
Softwood lumber — board feet
     1,257       1,657         1,252       1,805         2,509       3,462         1,654         1,422         6,538  
Engineered solid section — cubic feet
     6       7         6       10         12       17         8         5         30  
Engineered I-Joists — lineal feet
     56       82         70       108         126       190         92         56         338  
Oriented strand board — square feet (3/8”)
     671       942         637       899         1,308       1,841         835         790         3,466  
Plywood — square feet (3/8”)
     154       310         160       305         314       615         240         194         1,049  
Hardwood lumber — board feet
     87       89         88       99         175       188         93         82         363  
 
                                                                                  
Cellulose Fibers (thousands):
                                                                                  
Pulp — air-dry metric tons
     442       594         447       524         889       1,118         470         482         2,070  
Liquid packaging board — tons
     71       67         78       82         149       149         72         65         286  
 
                                                                                  
Fine Paper (thousands): (1)
                                                                                  
Paper — tons
     —       461         —       —         —       461         —         —         461  
Coated groundwood — tons
     —       38         —       —         —       38         —         —         38  
Paper converting — tons
     —       318         —       —         —       318         —         —         318  
 
                                                                                  
Containerboard, Packaging and Recycling (thousands):
                                                                                  
Containerboard — tons
     285       259         234       230         519       489         205         263         957  
Packaging — MSF
     17,537       17,754         18,343       18,965         35,880       36,719         18,751         18,102         73,572  
Recycling — tons
     628       654         677       656         1,305       1,310         632         638         2,580  
Kraft bags and sacks — tons
     23       25         24       23         47       48         25         26         99  
 
                                                                                  
Real Estate:
                                                                                  
Single-family homes sold
     926       1,684         748       1,139         1,674       2,823         734         595         4,152  
Single-family homes closed
     844       976         869       1,062         1,713       2,038         1,145         1,244         4,427  
Single-family homes sold but not closed at end of period
     1,306       2,207         1,185       2,284         1,185       2,284         1,873         1,224         1,224  
 
(1)   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.
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
TOTAL PRODUCTION VOLUMES:
     (in millions)
                                                                                   
    Q1     Q2     Year-to-date     Q3     Q4     Year-to-date
    March 30,   April 1,     June 29,   July 1,     June 29,   July 1,     Sept. 30,     Dec. 30,     Dec. 30,
    2008   2007     2008   2007     2008   2007     2007     2007     2007
Timberlands (thousands):
                                                                                  
Fee depletion — cunits
     2,093       2,140         2,177       2,038         4,270       4,178         2,029         1,937         8,144  
 
                                                                                  
Wood Products (millions):
                                                                                  
Softwood lumber — board feet
     1,187       1,427         1,180       1,451         2,367       2,878         1,405         1,207         5,490  
Engineered solid section — cubic feet
     6       6         6       9         12       15         8         5         28  
Engineered I-Joists — lineal feet
     58       87         61       114         119       201         91         47         339  
Oriented strand board — square feet (3/8”)
     697       968         670       847         1,367       1,815         834         779         3,428  
Plywood — square feet (3/8”)
     74       114         95       115         169       229         110         84         423  
Hardwood lumber — board feet
     71       73         67       75         138       148         80         66         294  
 
                                                                                  
Cellulose Fibers (thousands):
                                                                                  
Pulp — air-dry metric tons
     455       539         417       419         872       958         445         448         1,851  
Liquid packaging board — tons
     64       60         77       77         141       137         72         74         283  
 
                                                                                  
Fine Paper (thousands): (1)
                                                                                  
Paper — tons (2)
     —       444         —       —         —       444         —         —         444  
Coated groundwood — tons
     —       43         —       —         —       43         —         —         43  
Paper converting — tons
     —       318         —       —         —       318         —         —         318  
 
                                                                                  
Containerboard, Packaging and Recycling (thousands):
                                                                                  
Containerboard — tons (3)
     1,558       1,515         1,488       1,506         3,046       3,021         1,575         1,510         6,106  
Packaging — MSF
     18,356       19,007         19,087       19,721         37,443       38,728         19,547         18,946         77,221  
Recycling — tons (4)
     1,563       1,619         1,755       1,589         3,318       3,208         1,838         1,609         6,655  
Kraft bags and sacks — tons
     22       23         22       23         44       46         23         24         93  
 
(1)   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.
 
(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

6

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
     (in millions)
                         
    March 30,     June 29,     Dec. 30,  
    2008     2008     2007  
Assets
                        
 
                        
Weyerhaeuser
                        
Current assets:
                        
Cash and cash equivalents
   $ 46     $ 73     $ 79  
Receivables, less allowances
     768       762       659  
Inventories
     814       732       805  
Prepaid expenses
     149       133       164  
Deferred tax assets
     146       150       132  
Current assets of discontinued operations
     1,190       1,243       1,175  
 
                  
Total current assets
     3,113       3,093       3,014  
Property and equipment
     3,991       4,052       4,155  
Construction in progress
     321       239       289  
Timber and timberlands at cost, less fee stumpage charged to disposals
     3,812       4,021       3,769  
Investments in and advances to equity affiliates
     308       192       285  
Goodwill
     932       931       947  
Deferred pension and other assets
     2,499       2,538       2,446  
Restricted assets held by special purpose entities
     914       916       916  
Noncurrent assets of discontinued operations
     4,156       4,206       4,205  
 
                  
 
     20,046       20,188       20,026  
 
                  
 
                        
Real Estate
                        
Cash and cash equivalents
     16       8       21  
Receivables, less allowances
     60       77       63  
Real estate in process of development and for sale
     1,190       993       1,270  
Land being processed for development
     1,675       1,600       1,622  
Investments in unconsolidated entities, less reserves
     43       46       58  
Other assets
     458       581       473  
Consolidated assets not owned
     268       218       273  
 
                  
 
     3,710       3,523       3,780  
 
                  
Total assets
   $ 23,756     $ 23,711     $ 23,806  
 
                  
 
                        
Liabilities
                        
 
                        
Weyerhaeuser
                        
Current liabilities:
                        
Notes payable and commercial paper
   $ 151     $ 164     $ 54  
Current maturities of long-term debt
     807       870       507  
Accounts payable
     497       509       590  
Accrued liabilities
     863       939       959  
Current liabilities of discontinued operations
     464       505       497  
 
                  
Total current liabilities
     2,782       2,987       2,607  
Long-term debt
     6,058       5,996       6,059  
Deferred income taxes
     2,562       2,666       2,554  
Deferred pension, other postretirement benefits and other liabilities
     1,634       1,257       1,657  
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities
     763       764       765  
Noncurrent liabilities of discontinued operations
     743       777       748  
 
                  
 
     14,542       14,447       14,390  
 
                  
Real Estate
                        
Notes payable and commercial paper
     —               —  
Long-term debt
     956       1,096       775  
Other liabilities
     360       343       432  
Consolidated liabilities not owned
     198       132       228  
 
                  
 
     1,514       1,571       1,435  
 
                  
Shareholders’ Interest
                        
 
                        
Total liabilities
     16,056       16,018       15,825  
Shareholders’ interest
     7,700       7,693       7,981  
 
                  
Total liabilities and shareholders’ interest
   $ 23,756     $ 23,711     $ 23,806  
 
                  
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
STATEMENT OF CASH FLOWS
SELECTED INFORMATION (unaudited)
     (in millions)
                                                                                   
    Q1     Q2     Year-to-date     Q3     Q4     Year-to-date
    March 30,   April 1,     June 29,   July 1,     June 29,   July 1,     Sept. 30,     Dec. 30,     Dec. 30,
(Weyerhaeuser only, excludes Real Estate)   2008   2007     2008   2007     2008   2007     2007     2007     2007
 
                                                                                  
Net cash from operations
   $ (254 )   $ (187 )     $ 251     $ 271       $ (3 )   $ 84       $ 185       $ 411       $ 680  
Cash paid for property and equipment
   $ (98 )   $ (114 )     $ (107 )   $ (140 )     $ (205 )   $ (254 )     $ (176 )     $ (232 )     $ (662 )
Cash paid for timberlands reforestation
   $ (16 )   $ (12 )     $ (11 )   $ (12 )     $ (27 )   $ (24 )     $ (8 )     $ (12 )     $ (44 )
Cash received from issuances of debt
   $ —     $ —       $ —     $ —       $ —     $ —       $ 451       $ —       $ 451  
Revolving credit facilities, notes and commercial paper borrowings, net
   $ 385     $ (162 )     $ 2     $ 194       $ 387     $ 32       $ 148       $ (158 )     $ 22  
Payments on debt
   $ (1 )   $ (466 )     $ —     $ (1,090 )     $ (1 )   $ (1,556 )     $ (54 )     $ (3 )     $ (1,613 )
Proceeds from the sale of operations and investments
   $ 21     $ 1,350       $ 41     $ —       $ 62     $ 1,350       $ 107       $ 172       $ 1,629  
Repurchases of common stock
   $ —     $ —       $ —     $ (22 )     $ —     $ (22 )     $ (441 )     $ (10 )     $ (473 )
PRELIMINARY RESULTS — SUBJECT TO AUDIT

7