EX-12 2 dex12.htm STATEMENTS REGARDING COMPUTATION OF RATIOS Statements regarding computation of ratios

EXHIBIT 12

Weyerhaeuser Company and Subsidiaries

Computation of Ratios of Earnings (Loss) to Fixed Charges

(Dollar amounts in thousands)

 

     Thirteen weeks ended  
     March 26,
2006		     March 27,
2005		  

Available earnings (loss):

     

Earnings (loss) before interest expense, amortization of debt expense and income taxes

    $ (336,692 )   $ 579,540  

Add: interest portion of rental expense

      14,975       14,749  

Deduct: undistributed earnings (loss) of equity affiliates

      (16,499 )     (5,588 )
                

Available earnings (loss)

    $ (338,216 )   $ 588,701  
                

Fixed charges:

     

Interest expense incurred:

     

Weyerhaeuser Company and subsidiaries excluding Weyerhaeuser Real Estate Company and other related subsidiaries

      149,598       192,258  

Weyerhaeuser Real Estate Company and other related subsidiaries

      14,099       13,634  
                

Subtotal

      163,697       205,892  

Less: intercompany interest

      80       249  
                

Total interest expense incurred

      163,777       206,141  

Amortization of debt expense

      2,644       3,322  

Interest portion of rental expense

      14,975       14,749  
                

Total fixed charges

    $ 181,396     $ 224,212  
                

Ratio of earnings (loss) to fixed charges

      —         2.63  
                

Coverage deficiency(1)

   $ (519,612 )     —    
                
(1) The coverage deficiency of Weyerhaeuser Company and subsidiaries for the thirteen weeks ended March 26, 2006 includes a charge of $746 million arising from the impairment of goodwill associated with the Cellulose Fiber and White Papers segment.

Weyerhaeuser Company with its Weyerhaeuser Real Estate Company and Other Related Subsidiaries

Accounted for on the Equity Method, but Excluding the Undistributed Earnings of Those Subsidiaries

Computation of Ratios of Earnings (Loss) to Fixed Charges

(Dollar amounts in thousands)

 

     Thirteen weeks ended  
     March 26,
2006		     March 27,
2005		  

Available earnings (loss):

     

Earnings (loss) before interest expense, amortization of debt expense and income taxes

    $ (349,220 )   $ 562,758  

Add: interest portion of rental expense

      13,150       13,269  

Deduct: undistributed earnings (loss) of equity affiliates

      (900 )     640  

Deduct: undistributed earnings (loss) before income taxes of Weyerhaeuser Real Estate Company and other related subsidiaries

      (171,494 )     (182,849 )
                

Available earnings (loss)

    $ (508,464 )   $ 393,818  
                

Fixed charges:

     

Interest expense incurred

      149,598       192,258  

Amortization of debt expense

      2,644       3,322  

Interest portion of rental expense

      13,150       13,269  
                

Total fixed charges

    $ 165,392     $ 208,849  
                

Ratio of earnings (loss) to fixed charges

      —         1.89  
                

Coverage deficiency(2)

   $ (673,856 )     —    
                
(2) The coverage deficiency of Weyerhaeuser Company with its Weyerhaeuser Real Estate company and other related subsidiaries accounted for on the equity method, but excluding the undistributed earnings of those subsidiaries for the thirteen weeks ended March 26, 2006 includes a charge of $746 million arising from the impairment of goodwill associated with the Cellulose Fiber and White Papers segment.