EX-99.2 3 v50307exv99w2.htm EXHIBIT 99.2 exv99w2
Exhibit 99.2
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS
          (in millions)
                                                                                 
    REVISED(1)                                
    Q1     Q2     Q3     Year-to-date     Q4     Year-to-date  
    March 30,     April 1,     June 29,     July 1,     Sept. 28,     Sept. 30,     Sept. 28,     Sept. 30,     Dec. 30,     Dec. 30,  
    2008     2007     2008     2007     2008     2007     2008     2007     2007     2007  
                             
Net sales and revenues:
                                                                                
Weyerhaeuser
   $ 1,671     $ 2,136     $ 1,820     $ 2,400     $ 1,778     $ 2,199     $ 5,269     $ 6,735     $ 1,839     $ 8,574  
Real Estate
     371       487       354       559       329       598       1,054       1,644       715       2,359  
                             
Total net sales and revenues
     2,042       2,623       2,174       2,959       2,107       2,797       6,323       8,379       2,554       10,933  
                             
 
                                                                                
Costs and expenses:
                                                                                
Weyerhaeuser:
                                                                                
Costs of products sold
    1,399       1,757       1,518       1,978       1,413       1,776       4,330       5,511       1,553       7,064  
Depreciation, depletion and amortization
     145       154       146       148       148       155       439       457       140       597  
Selling expenses
     59       70       57       69       57       61       173       200       73       273  
General and administrative expenses
     148       164       125       157       109       143       382       464       149       613  
Research and development expenses
     17       16       18       18       14       18       49       52       19       71  
Charges for restructuring (2)
     1       3       39       1       11       16       51       20       15       35  
Charges for closure of facilities (3)
     53       3       30       16       —       19       83       38       78       116  
Impairment of goodwill (4)
     3       22       2       —       6       1       11       23       7       30  
Other operating costs (income), net (5) (6)
     46       26       (16 )     33       50       5       80       64       (34 )     30  
                             
 
     1,871       2,215       1,919       2,420       1,808       2,194       5,598       6,829       2,000       8,829  
                             
Real Estate:
                                                                                
Costs and operating expenses
     327       379       321       415       369       451       1,017       1,245       507       1,752  
Depreciation and amortization
     4       6       5       5       5       6       14       17       6       23  
Selling expenses
     36       41       37       45       32       45       105       131       48       179  
General and administrative expenses
     29       28       27       27       26       26       82       81       18       99  
Other operating costs (income), net
     (1 )     (4 )     (1 )     5       (4 )     (1 )     (6 )     —       (5 )     (5 )
Impairment of long-lived assets
     33       —       246       12       226       23       505       35       93       128  
                             
 
     428       450       635       509       654       550       1,717       1,509       667       2,176  
                             
Total costs and expenses
     2,299       2,665       2,554       2,929       2,462       2,744       7,315       8,338       2,667       11,005  
                             
 
                                                                                
Operating income (loss)
     (257 )     (42 )     (380 )     30       (355 )     53       (992 )     41       (113 )     (72 )
 
                                                                                
Interest expense and other:
                                                                                
Weyerhaeuser:
                                                                                
Interest expense incurred (7)
     (132 )     (131 )     (126 )     (178 )     (126 )     (131 )     (384 )     (440 )     (132 )     (572 )
Less: interest capitalized
     24       30       21       29       11       29       56       88       30       118  
Interest income and other (8)
     13       20       117       25       30       20       160       65       18       83  
Equity in income (loss) of affiliates
    (5 )     (1 )     3       —       10       1       8       —       (5 )     (5 )
Real Estate:
                                                                                
Interest expense incurred
     (12 )     (12 )     (14 )     (17 )     (10 )     (15 )     (36 )     (44 )     (13 )     (57 )
Less: interest capitalized
     12       12       14       17       10       15       36       44       13       57  
Interest income and other
     1       3       —       1       1       2       2       6       2       8  
Equity in income of unconsolidated entities (9)
     —       18       1       15       14       13       15       46       3       49  
Impairment and other investment related charges
     (18 )     —       (57 )     (2 )     (6 )     (3 )     (81 )     (5 )     (31 )     (36 )
                             
Loss from continuing operations before income taxes
     (374 )     (103 )     (421 )     (80 )     (421 )     (16 )     (1,216 )     (199 )     (228 )     (427 )
Income taxes (10)
     139       38       214       31       221       11       574       80       96       176  
                             
Loss from continuing operations
     (235 )     (65 )     (207 )     (49 )     (200 )     (5 )     (642 )     (119 )     (132 )     (251 )
 
                                                                                
Earnings from discontinued operations, net of taxes (11)
     87       785       111       81       480       106       678       972       69       1,041  
                             
Net earnings (loss)
  $ (148 )   $ 720     $ (96 )   $ 32     $ 280     $ 101     $ 36     $ 853     $ (63 )   $ 790  
                             
 
                                                                                
Basic net earnings (loss) per share:
                                                                                
Continuing operations
   $ (1.11 )   $ (0.28 )   $ (0.98 )   $ (0.22 )   $ (0.94 )   $ (0.02 )   $ (3.04 )   $ (0.54 )   $ (0.63 )   $ (1.15 )
Discontinued operations
     0.41       3.37       0.53       0.37       2.27       0.49       3.21       4.38       0.33       4.75  
                             
Net earnings (loss) per share
   $ (0.70 )   $ 3.09     $ (0.45 )   $ 0.15     $ 1.33     $ 0.47     $ 0.17     $ 3.84     $ (0.30 )   $ 3.60  
                             
 
                                                                                
Diluted net earnings (loss) per share:
                                                                                
Continuing operations
   $ (1.11 )   $ (0.28 )   $ (0.98 )   $ (0.22 )   $ (0.94 )   $ (0.02 )   $ (3.04 )   $ (0.54 )   $ (0.63 )   $ (1.15 )
Discontinued operations
     0.41       3.37       0.53       0.37       2.27       0.49       3.21       4.38       0.33       4.75  
                             
Net earnings (loss) per share
   $ (0.70 )   $ 3.09     $ (0.45 )   $ 0.15     $ 1.33     $ 0.47     $ 0.17     $ 3.84     $ (0.30 )   $ 3.60  
                             
 
Dividends paid per share
   $ 0.60     $ 0.60     $ 0.60     $ 0.60     $ 0.60     $ 0.60     $ 1.80     $ 1.80     $ 0.60     $ 2.40  
                             
 
                                                                                
Weighted average shares outstanding (in thousands):
                                                                                
Basic
     211,195       233,242       211,262       217,688       211,284       215,154       211,247       222,028       211,135       219,305  
Diluted
     211,195       233,242       211,262       217,688       211,284       215,154       211,247       222,028       211,135       219,305  
 
                                                                                
Common and exchangeable shares outstanding at end of period (in thousands)
     211,243       217,726       211,279       217,759       211,289       211,106       211,289       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. Third quarter of 2008 includes a charge of $6 million for the impairment of goodwill associated with the Trus Joist® Commercial division.
 
(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     Q3 2008     Q3 2007     Q3 2008     Q3 2007     Q4 2007     Q4 2007  
                             
 
   $ (11 )   $ 7     $ 3     $ 29     $ (13 )   $ 2     $ (21 )   $ 39     $ 6     $ 45  
(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 third quarter of 2008 includes charges of $31 million for asset impairments related to Wood Products facilities. These charges were partially offset by a $13 million reduction in the reserve for hardboard siding claims.
 
  (d)   The first, second, and third quarters of 2008 include charges of $5 million, $23 million, and $19 million respectively, for the impairment of previously capitalized interest on Real Estate assets.
 
  (e)   The first, second, and fourth quarters of 2007 include charges of $34 million, $12 million, and $6 million, respectively, for asset impairments related to Wood Products facilities.
 
  (f)   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.
 
  (g)   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.
 
  (h)   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)   The third quarter of 2008 includes $12 million of income from a commercial partnership investment.
 
(10)   (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.
(11)   Discontinued operations include the net operating results of the Containerboard, Packaging and Recycling business and our Australian 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     Q3     Year-to-date     Q4     Year-to-date  
    Q1 2008     Q1 2007     Q2 2008     Q2 2007     Q3 2008     Q3 2007     Q3 2008     Q3 2007     Q4 2007     Q4 2007  
                             
Net sales
   $ 1,351     $ 1,831     $ 1,436     $ 1,375     $ 514     $ 1,349     $ 3,301     $ 4,555     $ 1,383     $ 5,938  
                             
Net earnings from operations (after-tax) (a)(b)(c)
   $ 87     $ 64     $ 111     $ 85     $ 16     $ 106     $ 214     $ 255     $ 91     $ 346  
Net gain (loss) on divestitures and sales (after-tax) (d)
   $ —     $ 721     $ —     $ (4 )   $ 464     $ —     $ 464     $ 717     $ (22 )   $ 695  
                             
Net earnings from discontinued operations
   $ 87     $ 785     $ 111     $ 81     $ 480     $ 106     $ 678     $ 972     $ 69     $ 1,041  
                             
 
  (a)   The second quarter of 2007 includes an after-tax $18 million gain on the sale of a previously closed box plant site.
 
  (b)   The third quarter of 2007 includes after-tax income of $28 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.
 
  (d)   The third quarter of 2008 includes an after-tax gain of $158 million on the sale of our Australian operations, and an after-tax gain of $303 million on the sale of the Containerboard, Packaging and Recycling business.
PRELIMINARY RESULTS — SUBJECT TO AUDIT

2

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
NET SALES AND REVENUES:
     (in millions)
                                                                                 
    Q1     Q2     Q3     Year-to-date     Q4     Year-to-date  
    March 30,     April 1,     June 29,     July 1,     Sept. 28,     Sept. 30,     Sept. 28,     Sept. 30,     Dec. 30,     Dec. 30,  
    2008     2007     2008     2007     2008     2007     2008     2007     2007     2007  
                             
Timberlands:
                                                                                
Logs
   $ 143     $ 170     $ 174     $ 172     $ 180     $ 168     $ 497     $ 510     $ 150     $ 660  
Other products
     54       64       50       42       74       84       178       190       72       262  
                             
 
     197       234       224       214       254       252       675       700       222       922  
                             
 
                                                                                
Wood Products:
                                                                                
Softwood lumber
     361       574       403       647       393       580       1,157       1,801       440       2,241  
Engineered solid section
     105       155       121       185       114       155       340       495       113       608  
Engineered I-Joists
     73       117       86       147       79       124       238       388       79       467  
Oriented strand board
     105       152       110       153       113       151       328       456       133       589  
Plywood
     57       100       59       106       48       89       164       295       71       366  
Hardwood lumber
     80       90       80       99       72       89       232       278       77       355  
Other products produced
     49       50       51       64       63       61       163       175       51       226  
Other products purchased for resale
     136       232       161       261       124       200       421       693       154       847  
                             
 
     966       1,470       1,071       1,662       1,006       1,449       3,043       4,581       1,118       5,699  
                             
 
                                                                                
Cellulose Fibers:
                                                                                
Pulp
     345       405       355       370       346       345       1,046       1,120       358       1,478  
Liquid packaging board
     67       56       74       72       73       61       214       189       58       247  
Other products
     33       21       31       28       28       30       92       79       28       107  
                             
 
     445       482       460       470       447       436       1,352       1,388       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: (2)
                                                                                
Containerboard
     141       119       118       109       42       99       301       327       130       457  
Packaging
     987       951       1,074       1,043       388       1,015       2,449       3,009       1,010       4,019  
Recycling
     113       94       121       103       41       106       275       303       110       413  
Bags
     23       23       24       23       9       23       56       69       27       96  
Other products
     33       39       38       49       17       50       88       138       45       183  
                             
 
     1,297       1,226       1,375       1,327       497       1,293       3,169       3,846       1,322       5,168  
                             
 
                                                                                
Real Estate
     371       487       354       559       329       598       1,054       1,644       715       2,359  
 
                                                                                
Corporate and Other (3)
     117       96       126       102       88       118       331       316       116       432  
 
                                                                                
Less: sales of discontinued operations
     (1,351 )     (1,831 )     (1,436 )     (1,375 )     (514 )     (1,349 )     (3,301 )     (4,555 )     (1,383 )     (5,938 )
                             
 
 
   $ 2,042     $ 2,623     $ 2,174     $ 2,959     $ 2,107     $ 2,797     $ 6,323     $ 8,379     $ 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.
 
(2)   Third quarter 2008 results include 5 weeks of operations for the Containerboard, Packaging, and Recycling business, prior to the sale of this business to International Paper.
 
(3)   Third quarter 2008 results includes 4 weeks of operations for the Australian operations, prior to the sale of this business.
PRELIMINARY RESULTS — SUBJECT TO AUDIT

3

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS:
          (in millions)
                                                                                 
    REVISED (1)                                
    Q1     Q2     Q3     Year-to-date     Q4     Year-to-date  
    March 30,     April 1,     June 29,     July 1,     Sept. 28,     Sept. 30,     Sept. 28,     Sept. 30,     Dec. 30,     Dec. 30,  
    2008     2007     2008     2007     2008     2007     2008     2007     2007     2007  
                             
Timberlands (2)(3)(4)(6)(7)(8)
   $ 112     $ 175     $ 103     $ 141     $ 107     $ 163     $ 322     $ 479     $ 148     $ 627  
Wood Products (2)(3)(4)(6)(9)
     (277 )     (167 )     (164 )     (123 )     (146 )     (131 )     (587 )     (421 )     (313 )     (734 )
Cellulose Fibers (2)(3)(4)(6)
     56       22       42       48       78       79       176       149       80       229  
Fine Paper (2)(3)(6)
     —       20       —       —       —       —       —       20       —       20  
Containerboard, Packaging and Recycling (2)(3)(4)(6)(10)
     89       67       105       112       10       104       204       283       99       382  
Real Estate (4)(6)(11)
     (74 )     58       (337 )     64       (316 )     60       (727 )     182       22       204  
Corporate and Other (2)(3)(4)(5)(6)(7)(12)
     (41 )     580       111       (43 )     1,369       (14 )     1,439       523       (48 )     475  
                             
 
   $ (135 )   $ 755     $ (140 )   $ 199     $ 1,102     $ 261     $ 827     $ 1,215     $ (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     Q3 2008     Q3 2007     Q3 2008     Q3 2007     Q4 2007     2007  
                             
Timberlands
   $ —     $ —     $ —     $ 1     $ —     $ 2     $ —     $ 3     $ (2 )   $ 1  
Wood Products
     —       2       4       —       1       4       5       6       14       20  
Cellulose Fibers
     —       —       —       —       —       3       —       3       —       3  
Fine Paper
     —       —       —       —       —       —       —       —       —       —  
Containerboard, Packaging and Recycling
     —       —       —       1       (1 )     —       (1 )     1       1       2  
Corporate and Other
     1       1       35       —       10       7       46       8       3       11  
                             
 
   $ 1     $ 3     $ 39     $ 2     $ 10     $ 16     $ 50     $ 21     $ 16     $ 37  
                             
    The above restructuring charges include costs incurred within the company’s discontinued operations.
 
(3)   Closure charges by segment:
                                                                                 
                                                    Year-to-date             Year-to-date  
    Q1 2008     Q1 2007     Q2 2008     Q2 2007     Q3 2008     Q3 2007     Q3 2008     Q3 2007     Q4 2007     2007  
                             
Timberlands
   $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —  
Wood Products
     53       3       30       15       —       19       83       37       78       115  
Cellulose Fibers
     —       —       —       —       —       —       —       —       —       —  
Fine Paper
     —       2       —       —       —       —       —       2       —       2  
Containerboard, Packaging and Recycling
     8       2       3       3       —       —       11       5       3       8  
Corporate and Other
     —       —       —       1       —       —       —       1       —       1  
                             
 
   $ 61     $ 7     $ 33     $ 19     $ —     $ 19     $ 94     $ 45     $ 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     Q3 2008     Q3 2007     Q3 2008     Q3 2007     Q4 2007     2007  
                             
Timberlands
   $ 1     $ 1     $ —     $ —     $ 1     $ 1     $ 2     $ 2     $ —     $ 2  
Wood Products
     3       2       2       2       1       1       6       5       1       6  
Cellulose Fibers
     2       2       —       —       1       —       3       2       1       3  
Containerboard, Packaging and Recycling
     3       1       2       2       5       1       10       4       1       5  
Real Estate
     2       2       1       1       —       —       3       3       1       4  
Corporate and Other
     15       14       2       5       5       —       22       19       2       21  
                             
 
   $ 26     $ 22     $ 7     $ 10     $ 13     $ 3     $ 46     $ 35     $ 6     $ 41  
                             
    The above share-based compensation charges include costs incurred within the company’s discontinued operations.
 
(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     Q3 2008     Q3 2007     Q3 2008     Q3 2007     Q4 2007     2007  
                             
 
   $ (11 )   $ 7     $ 4     $ 34     $ (11 )   $ 2     $ (18 )   $ 43     $ 6     $ 49  
                             
         The above foreign exchange gains (losses) include costs incurred within the company’s discontinued operations.
PRELIMINARY RESULTS — SUBJECT TO AUDIT

4

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS (CONTINUED)
          (in millions)
 
(6)   Effective with the first quarter of 2008, the company’s normal pension credits (costs) are no longer being allocated to the Weyerhaeuser operating segments. Effective with the third quarter of 2008, the company’s normal postretirement credits (costs) are no longer being allocated to the Weyerhaeuser operating segments. Normal Weyerhaeuser pension and postretirement credits (costs) are reported in the Corporate and Other segment with the exception of certain union-negotiated postretirement benefits that are reflected in the Cellulose Fibers segment. Pension and postretirement credits (costs) related to real estate operations are reported in the Real Estate segment.
 
    The information presented below excludes gains (losses) for plan curtailments, settlements and special termination benefits. These items are included in net gains from divestitures, gain from changes in postretirement benefit plans and charges for facility closures that are separately addressed in these footnotes.
 
    Pension credits (costs) recognized by segment, excluding charges for curtailments, settlements and special termination benefits:
                                                                                 
                                                    Year-to-date             Year-to-date  
    Q1 2008     Q1 2007     Q2 2008     Q2 2007     Q3 2008     Q3 2007     Q3 2008     Q3 2007     Q4 2007     2007  
                             
Timberlands
   $ —     $ 1     $ —     $ 1     $ —     $ 1     $ —     $ 3     $ 1     $ 4  
Wood Products
     —       5       —       11       —       13       —       29       10       39  
Cellulose Fibers
     —       —       —       4       —       2       —       6       2       8  
Fine Paper
     —       1       —       —       —       —       —       1       —       1  
Containerboard, Packaging and Recycling
     —       3       —       10       —       9       —       22       8       30  
Real Estate
     1       —       —       —       1       (1 )     2       (1 )     —       (1 )
Corporate and Other
     38       —       30       1       50       —       118       1       2       3  
                             
 
   $ 39     $ 10     $ 30     $ 27     $ 51     $ 24     $ 120     $ 61     $ 23     $ 84  
                             
       Postretirement credits (costs) recognized by segment, excluding charges for curtailments, settlements and special termination benefits:
                                                                                 
                                                    Year-to-date             Year-to-date  
    Q1 2008     Q1 2007     Q2 2008     Q2 2007     Q3 2008     Q3 2007     Q3 2008     Q3 2007     Q4 2007     2007  
                             
Timberlands
   $ (1 )   $ (1 )   $ (1 )   $ (1 )   $ —     $ (1 )   $ (2 )   $ (3 )   $ (1 )   $ (4 )
Wood Products
     (7 )     (6 )     (6 )     (7 )     —       (6 )     (13 )     (19 )     (10 )     (29 )
Cellulose Fibers
     (3 )     (3 )     (3 )     (2 )     (1 )     (4 )     (7 )     (9 )     (3 )     (12 )
Fine Paper
     —       (1 )     —       —       —       —       —       (1 )     —       (1 )
Containerboard, Packaging and Recycling
     (5 )     (4 )     (5 )     (4 )     —       (5 )     (10 )     (13 )     (7 )     (20 )
Real Estate
     (1 )     (1 )     (1 )     (1 )     (1 )     —       (3 )     (2 )     (1 )     (3 )
Corporate and Other
     (6 )     (7 )     (7 )     (6 )     12       (5 )     (1 )     (18 )     (13 )     (31 )
                             
 
   $ (23 )   $ (23 )   $ (23 )   $ (21 )   $ 10     $ (21 )   $ (36 )   $ (65 )   $ (35 )   $ (100 )
                             
(7)   Effective July 2008, Weyerhaeuser’s international operations outside of North America are reported as part of the Timberlands segment. These operations, which consist primarily of timberlands and related converting operations in South America, were previously reported as part of the Corporate and Other segment. Segment results for prior quarters have been recast to reflect these operations in a consistent manner. Results of the company’s discontinued Australian operations and the company’s joint venture investment in Uruguay, prior to its restructuring in second quarter of 2008, continue to be reported in the Corporate and Other segment.
(8)   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.
(9)   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.
 
  (c)   The third quarter includes charges of $31 million for asset impairments related to Wood Products facilities, $6 million of goodwill impairment and income of $13 million for a reduction in the reserve for hardboard siding claims.
    2007:
  (d)   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.
 
  (e)   The second quarter includes a charge of $17 million for the settlement of litigation, charges of $12 million for asset impairments related to Wood Products facilities and $6 million in additional charges related to the sale of Canadian distribution facilities.
 
  (f)   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.
 
  (g)   The fourth quarter includes charges of $7 million in goodwill impairments, and $6 million in asset impairments and a gain of $3 million on the sale of a facility.
PRELIMINARY RESULTS — SUBJECT TO AUDIT

5

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS (CONTINUED)
          (in millions)
(10)   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.
 
  (c)   The third quarter includes only 5 weeks of operations as the sale of our Containerboard, Packaging and Recycling business to International Paper was completed on August 4, 2008.
    2007:
  (d)   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.
 
  (e)   The third quarter includes $3 million of income related to the sale of a previously closed box plant site.
(11)   Additional Real Estate notes:
    2008:
  (a)   The first quarter includes charges of $33 million for the impairment of homebuilding assets, $18 million related to WRI investment activities and $4 million for the write-off of pre-acquisition costs.
 
  (b)   The first and third quarters include net losses on land and lot sales of $2 million and $87 million, respectively, or $89 million year-to-date.
 
  (c)   The second quarter includes charges of $246 million for the impairment of homebuilding assets, $57 million related to WRI investment activities and $9 million for the write-off of pre-acquisition costs.
 
  (d)   The third quarter includes charges of $226 million for the impairment of homebuilding assets, $6 million related to WRI investment activities and $3 million for the write-off of pre-acquisition costs, partially offset by income of $12 million from a commercial partnership investment.
    2007:
  (e)   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.
 
  (f)   The first, second and third quarters each include charges of $1 million, and the fourth quarter includes charges of $3 million, or $6 million year-to-date for the write-off of pre-acquisition costs.
 
  (g)   The second quarter includes a gain of $42 million on the sale of an apartment project.
 
  (h)   The second, third, and fourth quarters include charges for the impairment of long-lived assets of $12 million, $23 million, and $93 million, respectively, or $128 million year-to-date.
(12)   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 postretirement 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.
 
  (c)   The third quarter includes a $1.17 billion pre-tax gain from the sale of the Containerboard, Packaging and Recycling business, a $217 million pre-tax gain from the sale of our Australian operations, a charge of $18 million for corporate restructuring activities, and a charge of $19 million for the impairment of interest that was previously capitalized on Real Estate assets.
    2007:
  (d)   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.
 
  (e)   The second quarter includes a $23 million charge for legal settlements and a contract termination.
 
  (f)   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.
 
  (g)   The fourth quarter includes a gain of $9 million on the sale of our New Zealand joint venture.
PRELIMINARY RESULTS — SUBJECT TO AUDIT

6

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
THIRD PARTY SALES VOLUMES:
          (in millions)
                                                                                 
    Q1     Q2     Q3     Year-to-date     Q4     Year-to-date  
    March 30,     April 1,     June 29,     July 1,     Sept. 28,     Sept. 30,     Sept. 28,     Sept. 30,     Dec. 30,     Dec. 30,  
    2008     2007     2008     2007     2008     2007     2008     2007     2007     2007  
                             
Timberlands (thousands):
                                                                                
Logs — cunits
     811       751       964       761       875       805       2,650       2,317       764       3,081  
 
                                                                                
Wood Products (millions):
                                                                                
Softwood lumber — board feet
     1,257       1,657       1,252       1,805       1,197       1,654       3,706       5,116       1,422       6,538  
Engineered solid section — cubic feet
     6       7       6       10       6       8       18       25       5       30  
Engineered I-Joists — lineal feet
     56       82       70       108       63       92       189       282       56       338  
Oriented strand board — square feet (3/8”)
     671       942       637       899       595       835       1,903       2,676       790       3,466  
Plywood — square feet (3/8”)
     154       310       160       305       135       240       449       855       194       1,049  
Hardwood lumber — board feet
     87       89       88       99       83       93       258       281       82       363  
 
                                                                                
Cellulose Fibers (thousands):
                                                                                
Pulp — air-dry metric tons
     442       594       447       524       422       470       1,311       1,588       482       2,070  
Liquid packaging board — tons
     71       67       78       82       77       72       226       221       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): (2)
                                                                                
Containerboard — tons
     285       259       234       230       84       205       603       694       263       957  
Packaging — MSF
     17,537       17,754       18,343       18,965       6,686       18,751       42,566       55,470       18,102       73,572  
Recycling — tons
     628       654       677       656       251       632       1,556       1,942       638       2,580  
Kraft bags and sacks — tons
     23       25       24       23       9       25       56       73       26       99  
 
                                                                                
Real Estate:
                                                                                
Single-family homes sold
     926       1,684       748       1,139       537       734       2,211       3,557       595       4,152  
Single-family homes closed
     844       976       869       1,062       720       1,145       2,433       3,183       1,244       4,427  
Single-family homes sold but not closed at end of period
     1,306       2,207       1,185       2,284       1,002       1,873       1,002       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.
 
(2)   Third quarter 2008 results include 5 weeks of operations for the Containerboard, Packaging, and Recycling business, prior to the sale of this business to International Paper.
PRELIMINARY RESULTS — SUBJECT TO AUDIT

7

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
TOTAL PRODUCTION VOLUMES:
          (in millions)
                                                                                 
    Q1     Q2     Q3     Year-to-date     Q4     Year-to-date  
    March 30,     April 1,     June 29,     July 1,     Sept. 28,     Sept. 30,     Sept. 28,     Sept. 30,     Dec. 30,     Dec. 30,  
    2008     2007     2008     2007     2008     2007     2008     2007     2007     2007  
                             
Timberlands (thousands):
                                                                                
Fee depletion — cunits
     2,093       2,140       2,177       2,038       2,061       2,029       6,331       6,207       1,937       8,144  
 
                                                                                
Wood Products (millions):
                                                                                
Softwood lumber — board feet
     1,187       1,427       1,180       1,451       1,107       1,405       3,474       4,283       1,207       5,490  
Engineered solid section — cubic feet
     6       6       6       9       6       8       18       23       5       28  
Engineered I-Joists — lineal feet
     58       87       61       114       60       91       179       292       47       339  
Oriented strand board — square feet (3/8”)
     697       968       670       847       585       834       1,952       2,649       779       3,428  
Plywood — square feet (3/8”)
     74       114       95       115       89       110       258       339       84       423  
Hardwood lumber — board feet
     71       73       67       75       64       80       202       228       66       294  
 
                                                                                
Cellulose Fibers (thousands):
                                                                                
Pulp — air-dry metric tons
     455       539       417       419       452       445       1,324       1,403       448       1,851  
Liquid packaging board — tons
     64       60       77       77       75       72       216       209       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): (3)
                                                                                
Containerboard — tons (4)
     1,558       1,515       1,488       1,506       593       1,575       3,639       4,596       1,510       6,106  
Packaging — MSF
     18,356       19,007       19,087       19,721       6,933       19,547       44,376       58,275       18,946       77,221  
Recycling — tons (5)
     1,563       1,619       1,755       1,589       605       1,838       3,923       5,046       1,609       6,655  
Kraft bags and sacks — tons
     22       23       22       23       8       23       52       69       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)   Third quarter 2008 results include 5 weeks of operations for the Containerboard, Packaging, and Recycling business, prior to the sale of this business to International Paper.
 
(4)   Containerboard production represents machine production and includes volumes that are further processed into packaging and kraft bags and sacks by company facilities.
 
(5)   Recycling production includes volumes processed in Weyerhaeuser recycling facilities that are consumed by company facilities and brokered volumes.
PRELIMINARY RESULTS — SUBJECT TO AUDIT

8

 

WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
     (in millions)
                                 
    March 30,     June 29,     Sept. 28,     Dec. 30,  
    2008     2008     2008     2007  
Assets
                                
 
                                
Weyerhaeuser
                                
Current assets:
                                
Cash and cash equivalents
   $ 46     $ 70     $ 4,096     $ 78  
Short-term investments
     —       —       701       —  
Receivables, less allowances
     760       754       658       651  
Inventories
     805       721       712       795  
Prepaid expenses
     149       133       113       164  
Deferred tax assets
     146       150       164       132  
Current assets of held for sale
     1,207       1,265       21       1,194  
 
                        
Total current assets
     3,113       3,093       6,465       3,014  
Property and equipment
     3,950       4,011       4,021       4,112  
Construction in progress
     321       239       121       289  
Timber and timberlands at cost, less fee stumpage charged to disposals
     3,812       4,021       4,041       3,769  
Investments in and advances to equity affiliates
     308       192       196       285  
Goodwill
     932       931       919       947  
Deferred pension and other assets
     2,499       2,538       2,259       2,446  
Restricted assets held by special purpose entities
     914       916       914       916  
Noncurrent assets held for sale
     4,197       4,247       10       4,248  
 
                        
 
     20,046       20,188       18,946       20,026  
 
                        
 
                                
Real Estate
                                
Cash and cash equivalents
     16       8       3       21  
Receivables, less allowances
     60       77       84       63  
Real estate in process of development and for sale
     1,190       993       860       1,270  
Land being processed for development
     1,675       1,600       1,453       1,622  
Investments in unconsolidated entities, less reserves
     43       46       41       58  
Other assets
     458       581       615       473  
Consolidated assets not owned
     268       218       214       273  
 
                        
 
     3,710       3,523       3,270       3,780  
 
                        
Total assets
   $ 23,756     $ 23,711     $ 22,216     $ 23,806  
 
                        
 
                                
Liabilities
                                
 
                                
Weyerhaeuser
                                
Current liabilities:
                                
Notes payable and commercial paper
   $ 151     $ 164     $ —     $ 54  
Current maturities of long-term debt
     807       870       880       507  
Accounts payable
     493       507       449       586  
Accrued liabilities
     862       938       2,211       957  
Current liabilities held for sale
     469       508       4       503  
 
                        
Total current liabilities
     2,782       2,987       3,544       2,607  
Long-term debt
     6,058       5,996       5,440       6,059  
Deferred income taxes
     2,562       2,666       2,683       2,554  
Deferred pension, other postretirement benefits and other liabilities
     1,634       1,265       1,235       1,657  
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities
     763       764       764       765  
Noncurrent liabilities held for sale
     743       769               748  
 
                        
 
     14,542       14,447       13,666       14,390  
 
                        
 
                                
Real Estate
                                
Notes payable and commercial paper
     —       —       2       —  
Long-term debt
     956       1,096       501       775  
Other liabilities
     360       343       334       432  
Consolidated liabilities not owned
     198       132       108       228  
 
                        
 
     1,514       1,571       945       1,435  
 
                        
 
                                
Shareholders’ Interest
                                
 
                                
Total liabilities
     16,056       16,018       14,611       15,825  
Shareholders’ interest
     7,700       7,693       7,605       7,981  
 
                        
Total liabilities and shareholders’ interest
   $ 23,756     $ 23,711     $ 22,216     $ 23,806  
 
                        
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
STATEMENT OF CASH FLOWS
SELECTED INFORMATION (unaudited)
     (in millions)
                                                                                 
    Q1   Q2   Q3   Year-to-date   Q4   Year-to-date
    March 30,   April 1,   June 29,   July 1,   Sept. 28,   Sept. 30,   Sept. 28,   Sept. 30,   Dec. 30,   Dec. 30,
    2008   2007   2008   2007   2008   2007   2008   2007   2007   2007
 
                                                                                
Net cash from operations
   $ (285 )   $ (284 )   $ 219     $ 165     $ (101 )   $ 197     $ (167 )   $ 78     $ 555     $ 633  
Cash paid for property and equipment(1)
   $ (98 )   $ (114 )   $ (107 )   $ (140 )   $ (77 )   $ (176 )   $ (282 )   $ (430 )   $ (232 )   $ (662 )
Cash paid for timberlands reforestation(1)
   $ (16 )   $ (12 )   $ (11 )   $ (12 )   $ (9 )   $ (8 )   $ (36 )   $ (32 )   $ (12 )   $ (44 )
Cash received from issuances of debt
   $ —     $ —     $ —     $ —     $ —     $ 451     $ —     $ 451     $ 170     $ 621  
Revolving credit facilities, notes and commercial paper borrowings, net
   $ 534     $ 291     $ 257     $ 76     $ (1,101 )   $ 108     $ (310 )   $ 475     $ (432 )   $ 43  
Payments on debt
   $ (4 )   $ (466 )   $ (103 )   $ (1,091 )   $ (262 )   $ (54 )   $ (369 )   $ (1,611 )   $ (5 )   $ (1,616 )
Proceeds from the sale of operations
   $ 21     $ 1,350     $ 41     $ —     $ 6,351     $ 107     $ 6,413     $ 1,457     $ 172     $ 1,629  
Repurchases of common stock
   $ —     $ —     $ —     $ (22 )   $ —     $ (441 )   $ —     $ (463 )   $ (10 )   $ (473 )
 
(1) Capital spending is Weyerhaeuser only and excludes Real Estate.
PRELIMINARY RESULTS—SUBJECT TO AUDIT

9