Form 8-K

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, KVSmFFXwWnGnzZVRDypNCUImnN+EMS1pq0exbjpNHTjF70MeJRu1ugpFa67771v8 EGxR1lhvTxc45/q7/hpOIw== 0001193125-09-072451.txt : 20090403 0001193125-09-072451.hdr.sgml : 20090403 20090403132130 ACCESSION NUMBER: 0001193125-09-072451 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20090403 ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090403 DATE AS OF CHANGE: 20090403 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WEYERHAEUSER CO CENTRAL INDEX KEY: 0000106535 STANDARD INDUSTRIAL CLASSIFICATION: LUMBER & WOOD PRODUCTS (NO FURNITURE) [2400] IRS NUMBER: 910470860 STATE OF INCORPORATION: WA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04825 FILM NUMBER: 09731194 BUSINESS ADDRESS: STREET 1: 33663 WEYERHAEUSER WAY SOUTH CITY: FEDERAL WAY STATE: WA ZIP: 98003 BUSINESS PHONE: 2539242345 MAIL ADDRESS: STREET 1: 33663 WEYERHAEUSER WAY SOUTH CITY: FEDERAL WAY STATE: WA ZIP: 98003 8-K 1 d8k.htm FORM 8-K Form 8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 03, 2009

WEYERHAEUSER COMPANY

(Exact name of Registrant as Specified in Its Charter)

Washington

1-4825

91-0470860

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

33663 Weyerhaeuser Way South

Federal Way, Washington 98063-9777

98003

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: (253) 924-2345

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01

Other Events.

Attached as Exhibit 100 to this Current Report on Form 8-K are the following materials from Weyerhaeuser Company’s Quarterly Report on Form 10-Q for the quarter ended September 28, 2008, filed on November 7, 2008, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statement of Earnings, (ii) the Consolidated Balance Sheet (iii) the Consolidated Statement of Cash Flows, (iv) Notes to Consolidated Financial Statements, and (v) Document and Entity Information. Users of this data are advised pursuant to Rule 401 of Regulation S-T that the financial information contained in the XBRL documents is unaudited and these are not the official publicly filed financial statements of Weyerhaeuser Company. The purpose of submitting these XBRL formatted documents is to test the related format and technology and, as a result, investors should continue to rely on the official filed version of the furnished documents and not rely on this information in making investment decisions.

In accordance with Rule 402 of Regulation S-T, the information in this Current Report on Form 8-K, including Exhibit 100, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01

Financial Statements and Exhibits

(d) Exhibits



100		The following materials from Weyerhaeuser Company’s Quarterly Report on Form 10-Q for the quarter ended September 28, 2008, filed on November 7, 2008 formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Statement of Earnings, (ii) the Consolidated Balance Sheet, (iii) the Consolidated Statement of Cash Flows, (iv) Notes to Consolidated Financial Statements, and (v) Document and Entity Information.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


Date: April 03, 2009	Weyerhaeuser Company

	By:	/s/ Jeanne Hillman
		Jeanne Hillman
		Vice President and Chief Accounting Officer

EXHIBIT INDEX


Exhibit Number		Description

Exhibit 100.INS		XBRL Instance Document

Exhibit 100.SCH		XBRL Taxonomy Extension Schema Document

Exhibit 100.CAL		XBRL Taxonomy Extension Calculation Linkbase Document

Exhibit 100.DEF		XBRL Taxonomy Extension Definition Linkbase Document

Exhibit 100.LAB		XBRL Taxonomy Extension Label Linkbase Document

Exhibit 100.PRE		XBRL Taxonomy Extension Presentation Linkbase Document

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NOTE 3: DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE Our discontinued operations for the 13 and 39-week periods ended September 28, 2008 include the Containerboard, Packaging and Recycling business and our Australian operations. In addition to these operations, discontinued operations for the 39-week period ended September 30, 2007 include nine weeks of operations of the Fine Paper Business and related assets that were divested as part of the Domtar Transaction in March 2007. The following table summarizes the U.S. dollar components of net sales and net earnings from discontinued operations:   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="58%"></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=6>THIRTY-NINE WEEKS ENDED</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Net sales</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>514</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>1,349</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>3,301</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>4,555</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Income from operations</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>28</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>171</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>331</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>432</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Interest expense</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(18</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Equity in income of affiliates</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>5</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>5</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Income tax expense</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(13</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(69</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(121</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(164</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Earnings from operations</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>16</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>106</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>214</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>255</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Pretax gain on divestiture and sales</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,379</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,379</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>625</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Income tax (expense) benefit</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(915</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(915</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>92</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top noWrap> Net gain on divestiture and sales (after-tax)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>464</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>464</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>717</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Net earnings from discontinued operations</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>480</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>106</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>678</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>972</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> Results of discontinued operations:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> exclude certain general corporate overhead costs that have been allocated to and are included in contribution to earnings for the operating segments, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> include an allocation of net pension income and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> include interest expense only if the interest is directly attributable to the discontinued operations or is interest on debt that is required to be repaid as a result of a disposal transaction. </TD></TR></TBODY></TABLE> Discontinued operations related to Containerboard, Packaging and Recycling do not include any allocation of interest expense; however, discontinued operations related to our Australian operations and the Fine Paper Business and related assets include interest expense. The following table shows carrying values for assets and liabilities classified as assets held for sale as of September 28, 2008 and December 30, 2007. Assets held for sale as of both September 28, 2008 and December 30, 2007 include assets of the Trus Joist® Commercial division. In addition, assets held for sale as of December 30, 2007 include assets of the Containerboard, Packaging and Recycling operations and our Australian operations. Carrying Value of Assets and Liabilities Classified as Assets Held for Sale:   <TABLE cellSpacing=0 cellPadding=0 width="92%" align=center border=0> <TBODY> <TR> <TD width="76%"></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>DECEMBER 30, 2007</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Assets</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> Cash and cash equivalents</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>3</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>15</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Receivables, less allowances</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>8</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>682</TD></TR> <TR> <TD vAlign=top> Inventories</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>10</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>460</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Prepaid expenses</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>13</TD></TR> <TR> <TD vAlign=top> Deferred tax assets</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>24</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Total current assets</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>21</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,194</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR> <TR> <TD vAlign=top> Property and equipment, net</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>10</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2,706</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Construction in progress</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>152</TD></TR> <TR> <TD vAlign=top> Investments in and advances to equity affiliates</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>71</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Goodwill</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,260</TD></TR> <TR> <TD vAlign=top> Deferred pension and other assets</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>59</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Total noncurrent assets</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>10</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4,248</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR> <TR> <TD vAlign=top> Total assets</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>31</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>5,442</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Liabilities</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> Accounts payable</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>2</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>283</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Accrued liabilities</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>220</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR> <TR> <TD vAlign=top> Total current liabilities</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>503</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Deferred income taxes</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>736</TD></TR> <TR> <TD vAlign=top> Deferred pension, other postretirement benefits, and other liabilities</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>12</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Total noncurrent liabilities</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>748</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR> <TR> <TD vAlign=top> Total liabilities</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>4</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>1,251</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR></TBODY></TABLE>   SALE OF CONTAINERBOARD, PACKAGING AND RECYCLING BUSINESS On August 4, 2008, we sold our Containerboard, Packaging, and Recycling business to International Paper Company. The following operating assets were included as part of the transaction:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> nine containerboard mills with total capacity of 6.3 million tons, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 72 packaging locations with total capacity of 99.4 billion square feet, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 10 specialty packaging plants, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> four kraft bag and sack locations with a total capacity of 199,000 tons and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 19 recycling facilities. </TD></TR></TBODY></TABLE> The Containerboard, Packaging and Recycling assets were classified as assets held for sale and depreciation of the assets was suspended as of March 15, 2008, the date the purchase and sale agreement was signed. We received $6 billion in proceeds from the sale of the Containerboard, Packaging and Recycling business in the third quarter of 2008. We used $1.4 billion of the proceeds to pay down outstanding debt. The remaining proceeds are invested in money market funds and are classified as cash and cash equivalents and short-term investments in the accompanying consolidated balance sheet. As of September 28, 2008, the short-term investments consist of investments in the Reserve Primary Fund where redemptions have been delayed. These investments are carried at cost, which approximates fair value. We recognized a $1.17 billion pretax gain in the Corporate and Other segment and recorded tax expense of $869 million, resulting in a net gain of $303 million on the transaction. The overall tax rate on the gain is high primarily due to the write-off of approximately $1.25 billion of goodwill in connection with the sale. Goodwill is not deductible for income tax purposes and no tax benefit has been recognized on the write-off of goodwill. The gain recognized in the third quarter of 2008 does not include an adjustment for pension settlements that will be triggered in the fourth quarter as lump sum payouts are elected. The amount of the settlement adjustment cannot be determined until all payments are made and the pension assets and obligations are remeasured as of the date the settlement is triggered. The finalization of these and other matters may result in additional adjustments to the gain in future periods. SALE OF AUSTRALIAN OPERATIONS In July 2008, we sold the manufacturing operations and the distribution business of our Weyerhaeuser Australia Group and our 50 percent interest in the Green Triangle Forest Products timberlands business as part of two separate transactions. The following assets were sold in these transactions:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Pine Solutions Australia – selling and distribution operations; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Weyerhaeuser Australia – two sawmills and associated operations; and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Green Triangle Forest Products – two sawmills, a pine moulding operation, an export chip business, and timberlands operations including approximately 20,000 hectares (approximately 50,000 acres) of plantation pine forest. </TD></TR></TBODY></TABLE> The Australian assets were classified as assets held for sale and depreciation of the assets was suspended as of June 19, 2008, the date the transactions were approved by our board of directors. We received aggregate cash proceeds of $338 million from these transactions during the third quarter of 2008. Of these proceeds, $302 million is included as proceeds from sale of operations and $36 million is included in distributions from equity affiliates in the accompanying consolidated statement of cash flows. We recognized a $217 million pretax gain in the Corporate and Other segment and recorded tax expense of $59 million, resulting in a net gain of $158 million on the transactions. OUR FINE PAPER BUSINESS AND RELATED ASSETS – DOMTAR TRANSACTION On March 7, 2007, we completed the following set of transactions:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> a series of transfers and other transactions resulting in our Fine Paper business and related assets becoming wholly-owned by Domtar Corporation; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> the distribution of shares of Domtar Corporation to our shareholders in exchange for 25 million shares of our common stock; and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> the acquisition of Domtar, Inc., an unaffiliated Canadian corporation, by Domtar Corporation. </TD></TR></TBODY></TABLE> Collectively, these transactions are referred to as the “Domtar Transaction.” We also received $1.35 billion of cash proceeds in connection with the Domtar Transaction. We received a private letter ruling from the Internal Revenue Service regarding the Domtar Transaction, and in accordance with the ruling, the $1.35 billion of cash proceeds received were required to be used to pay down debt. Interest expense included in discontinued operations primarily reflects an estimate of interest expense related to the debt that was repaid with the proceeds from the transaction. Prior to distributing Domtar Corporation shares to our shareholders, Domtar Corporation was a wholly-owned subsidiary of our company. Concurrent with the distribution to shareholders, Domtar Corporation ceased being a subsidiary of our company. The operating assets divested as part of the Domtar Transaction are referred to as “Fine Paper and related assets” or the “Fine Paper business and related assets” and included the following:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Fine Paper – the Fine Paper business including seven paper mills and one coated groundwood mill with a combined capacity of 2.9 million tons, and 16 paper converting facilities with a total capacity of 2.0 million tons; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Cellulose Fibers – five cellulose fiber manufacturing facilities with total capacity of 0.8 million tons; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Wood Products – one sawmill with a capacity of 160 million board feet; and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Timberlands – forest licenses on 12.2 million acres associated with the Dryden, Ontario and Prince Albert, Saskatchewan facilities. </TD></TR></TBODY></TABLE> Also included in the Fine Paper and related assets divested were:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> the Prince Albert, Saskatchewan pulp and paper facility that we closed in the first quarter of 2006; and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> sawmills in Big River and Wapawekka, Saskatchewan that were closed in the third quarter of 2006. </TD></TR></TBODY></TABLE> We recognized a $625 million pretax gain in the Corporate and Other segment and recorded $92 million in tax benefits for the 39-week period ended September 30, 2007. The U.S. portion of the transaction resulted in a gain that was not taxable while the Canadian portion of the transaction resulted in a net loss for which we recognized a tax benefit in the first quarter of 2007. SALE OF BUILDING PRODUCTS DISTRIBUTION CENTERS In the second quarter of 2007, we sold our Canadian building products distribution facilities. We recognized pretax charges in the 39-week period ended September 30, 2007, of which $38 million was in connection with the sale of the Canadian distribution facilities, including $22 million for the impairment of goodwill. Through the third quarter of 2008, we also have sold six U.S. distribution facilities. Net losses of $2 million and $6 million were recognized on the sale of these facilities in the 13 and 39-week periods ended September 28, 2008, respectively. The net losses include charges for goodwill impairment of $2 million and $5 million in the 13 and 39-week periods, respectively. We received net cash proceeds of approximately $62 million in the 39-week period ended September 28, 2008 and approximately $100 million in the 39-week period ended September 30, 2007, in connection with the sale of these distribution centers. We continue to sell wood products through many of these distribution centers. As a result of this continuing involvement, the operations of these facilities have not been included in discontinued operations in the accompanying consolidated financial statements. TRUS JOIST® COMMERCIAL DIVISION On October 10, 2008, we announced we had signed a non-binding letter of intent to sell our Trus Joist® Commercial division, which had year-to-date 2008 sales of approximately $65 million, to Atlas Holdings. The transaction is expected to be completed during the fourth quarter of 2008. These assets, reported in our Wood Products segment, met the specific accounting requirements of assets held for sale as of September 28, 2008. The following operating assets are expected to be included as part of the transaction:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> four manufacturing plants and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 13 sales and engineering offices. </TD></TR></TBODY></TABLE> In the third quarter of 2008, we recognized a pretax charge of $27 million for the impairment of operating assets and $6 million for the impairment of goodwill associated with the Trus Joist® Commercial division.

0.17

NOTE 16: LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES This note provides details about our:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> legal proceedings and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> environmental matters. </TD></TR></TBODY></TABLE> LEGAL PROCEEDINGS Major legal proceedings involving us described in this section are:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> hardboard siding claims, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> alder antitrust litigation, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> oriented strand board (OSB) antitrust litigation and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Paragon Trade Brands, Inc. litigation. </TD></TR></TBODY></TABLE> We also are a party to other legal matters generally incidental to our business. The ultimate outcome of any legal proceeding:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> is subject to a great many variables and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> cannot be predicted with any degree of certainty. </TD></TR></TBODY></TABLE> However, whenever probable losses from litigation could reasonably be determined – we believe that we have established adequate reserves. In addition, we believe the ultimate outcome of the legal proceedings:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> could have a material adverse effect on our results of operations, cash flows or financial position in any given quarter or year; but </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> will not have a material adverse effect on our long-term results of operations, cash flows or financial position. </TD></TR></TBODY></TABLE> Hardboard Siding Claims This is a nationwide claims-based settlement of hardboard siding class action cases against us. Under the settlement – which we entered into in June 2000 – all persons who own or owned structures in the U.S. on which our hardboard siding had been installed from January 1, 1981 through December 31, 1999 can file claims. An independent adjuster reviews claims submitted and determines payment. Claims are paid as submitted over a nine-year period. The rights to file claims expire in three six-year increments and claims for the first two periods may no longer be filed. The expiration dates are:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2003 – persons who had our hardboard siding installed from 1981 to 1986, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2006 – persons who had our hardboard siding installed from 1987 to 1993 and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2009 – persons who had our hardboard siding installed from 1994 to 1999. </TD></TR></TBODY></TABLE> Status. Cumulative payments against the reserve through September 28, 2008 were $110 million. Based on our experience with actual claims and litigation, we reduced our reserve by $13 million in the third quarter of 2008. As of September 28, 2008, the reserve for future claims was $7 million. To date, we have recovered a total of $52 million through negotiated settlements with our insurance carriers. We have no litigation pending with any persons or entities that have opted out of the class. However, it is possible that persons or entities that have opted out may file claims in the future. We believe our reserve balance is adequate. However, determining reserves required to fund any future claims involves judgments and projections of future claims rates and amounts. At this time, we are unable to estimate any additional adjustments we may make in future periods. Claims Activity and Average Damage Award Paid   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="64%"></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>THIRTY-NINE WEEKS ENDED</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>FIFTY-TWO WEEKS ENDED</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>FIFTY-THREE WEEKS ENDED</TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>DECEMBER 30, 2007</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>DECEMBER 31, 2006</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Number of claims filed during the period</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,040</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,460</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2,200</TD></TR> <TR> <TD vAlign=top> Number of claims resolved</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,360</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,980</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,420</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Number of claims unresolved at end of period</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>645</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>965</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,485</TD></TR> <TR> <TD vAlign=top> Number of damage awards paid</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,070</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,200</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>675</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Average damage award paid</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>1,574</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>2,100</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>3,478</TD></TR></TBODY></TABLE> Events and Claims. Here is a chronology of the settlement:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2000 – We entered into a nationwide settlement of hardboard siding class action cases and recognized a $130 million charge to cover the estimated cost of the settlement and related claims. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2001 – We reassessed the adequacy of our reserve and increased it by $43 million. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2003 – The right to file claims from the first six-year period (1981-1986) expired. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2004 – We reduced our reserve by $20 million based on actual claims and litigation. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2006 – The right to file claims from the second six-year period (1987-1993) expired. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2006 – We reduced our reserve by $23 million based on actual claims and litigation. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2008 – We reduced our reserve by $13 million based on actual claims and litigation. </TD></TR></TBODY></TABLE>   Alder Antitrust Litigation There have been several lawsuits filed against us since 2000 alleging we had monopoly power or attempted to gain monopoly power for alder logs and finished alder lumber in the Pacific Northwest market. The legal proceedings have included cases we refer to as:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Initial Alder Case and Complaint in Equity, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Washington Alder and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Civil Class Action Antitrust Lawsuit. </TD></TR></TBODY></TABLE> Initial Alder Case and Complaint in Equity The Initial Alder Case – filed against us in U.S. District Court in Oregon – alleged that from 1996 to 2001 we had monopoly power or attempted to gain monopoly power in the Pacific Northwest market for alder logs and finished alder lumber. Complaint in Equity – filed against us in U.S. District Court in Oregon – asked that the judgment in the Initial Alder Case against a plaintiff who did not prevail be set aside and the matter be retried. Status. The U.S. Supreme Court vacated the lower court decision in the Initial Alder Case that had imposed $79 million in trebled damages against us. We reversed a $79 million reserve into income in the fourth quarter of fiscal year 2006. The U.S. Supreme Court held that – because the plaintiff had conceded that it had not satisfied the test established by the U.S. Supreme Court – the claim on which the damage award was based could not be supported. We settled the Initial Alder Case and the related Complaint in Equity in the second quarter of fiscal year 2007 and recorded an after-tax charge of $11 million. Events and Rulings. Here is a chronology of the litigation:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2000 –The Initial Alder case was filed against us in U.S. District Court in Oregon. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2003 – A jury verdict imposed $79 million in trebled damages against us and we recognized a charge of $79 million in the first quarter of 2003. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2003 – We appealed the jury verdict to the U.S. Court of Appeals for the Ninth Circuit. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2005 – A Complaint in Equity was filed against us in U.S. District Court in Oregon on behalf of a plaintiff who did not prevail in the Initial Alder Case. The complaint alleged that a fraud was committed on the court and alleged $20 million in trebled damages. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2005 – The U.S. Court of Appeals for the Ninth Circuit upheld the jury verdict in the Initial Alder Case. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2006 – We were granted discretionary review of the Initial Alder Case by the U.S. Supreme Court. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – The U.S. Supreme Court vacated the decision by the U.S. Court of Appeals for the Ninth Circuit and remanded the matter to the Ninth Circuit for further action. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – The Court of Appeals for the Ninth Circuit vacated the judgment of the District Court and remanded the matter to the District Court for further proceedings. We recognized income for the reversal of the $79 million reserve for this matter in the fourth quarter of 2006. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – We settled the Initial Alder Case and a related Complaint in Equity and recorded an after tax charge of $11 million in the second quarter of 2007. </TD></TR></TBODY></TABLE> Washington Alder This lawsuit – filed against us in U.S. District Court in Oregon – alleged monopolization of the alder log and lumber markets. The plaintiff asked for:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> $36 million in trebled damages; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> divestiture of our Northwest Hardwoods Division; and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> divestiture of our alder sawmills in Oregon, Washington and British Columbia. </TD></TR></TBODY></TABLE> Status. The U.S. Court of Appeals for the Ninth Circuit vacated the lower court decision imposing $16 million in trebled damages against us and remanded the Washington Alder case to the U.S. District Court in Oregon because of the U.S. Supreme Court decision in the Initial Alder Case. The Ninth Circuit held that because the jury award in Washington Alder had been based on the jury verdict in the Initial Alder Case, the Washington Alder verdict also had to be reconsidered. We reversed a $16 million reserve into income in the fourth quarter of fiscal year 2006. We settled the Washington Alder case in August 2007 and recorded an after-tax charge of $3 million in the third quarter of 2007. Events and Rulings. Here is a chronology of the litigation:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2003 – Washington Alder filed the antitrust lawsuit against us in U.S. District Court in Oregon. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2004 – A jury verdict imposed $16 million in trebled damages against us and we recognized a charge of $16 million in the second quarter of 2004. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2004 – We appealed the jury verdict to the U.S. Court of Appeals for the Ninth Circuit. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – The U.S. Court of Appeals for the Ninth Circuit issued an order vacating the judgment and remanded the case to the U.S. District Court in Oregon for further proceedings. We recognized income for the reversal of the $16 million reserve for this matter in the fourth quarter of 2006. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – We settled the case and recorded an after-tax charge of $3 million in the third quarter of 2007. </TD></TR></TBODY></TABLE> Civil Class Action Antitrust Lawsuit This lawsuit – filed against us in U.S. District Court in Oregon – claimed that as a result of our alleged monopolization of what was claimed to be the alder sawlog market in the Pacific Northwest we also had monopolized or controlled an alleged market for finished alder and charged monopoly prices for finished alder lumber.   Status. In April 2008 a jury found in favor of the class and imposed trebled damages of $84 million. There are currently several post-trial motions pending before the trial court. We believe multiple errors occurred during the trial and we intend to appeal the judgment once the post-trial motions are decided. Management believes that ultimately an adverse result is not probable because the company will prevail on appeal. Based on the information currently available to us, the requirements for establishing a reserve under Statement of Financial Accounting Standards No. 5, Accounting for Contingencies have not been met. As a result, we have not established a reserve for this litigation. However, it is possible in the future that there could be a charge for all or a portion of any damage award. Any such charge could materially and adversely affect our results of operations for the pe riod in which we record it. Sales for the class period to opt outs are approximately $100 million. There have been no claims by persons or entities opting out of the class. However, it is possible that entities or persons who have opted out of the class may file lawsuits against us in the future. We have not established a reserve for this matter. We also are unable to estimate at this time the amount of charges – if any – that may be required in the future. Events and Rulings. Here is a chronology of the litigation:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2004 –The civil class action antitrust lawsuit was filed against us in U.S. District Court in Oregon. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2004 – The judge issued an order certifying the plaintiff as class representative for all U.S. purchasers of finished alder lumber between April 28, 2000, and March 31, 2004 for the purpose of awarding monetary damages. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2005 – Class counsel notified the court that 5 percent of the class members opted out of the class action lawsuit. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – The U.S. District Court in Oregon granted the plaintiffs’ motion to file a second amended complaint, extended the claims period to December 31, 2006, and scheduled trial on the matter for April 2008. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – The U.S. District Court in Oregon denied our motion to decertify the class. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – The U.S. District Court in Oregon granted plaintiffs’ request to file a third amended complaint, which eliminated all allegations of overbidding and overbuying of alder sawlogs as a mechanism to affect the price of alder lumber. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – We filed a motion for summary judgment with the U.S. District Court. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2008 – The U.S. District Court denied our motion for summary judgment. The trial commenced April 15, 2008. A verdict was delivered against us on April 28, 2008 – The amount of the verdict with trebling is $84 million. We will appeal the judgment against us. A hearing is scheduled for December 2, 2008. </TD></TR></TBODY></TABLE> OSB Antitrust Litigation In 2006 a series of lawsuits that had been filed were consolidated into one case in the U.S. District Court in Pennsylvania on behalf of persons and entities who directly or indirectly purchased OSB between June 2002 and February 2006 from us or from Louisiana-Pacific, Georgia-Pacific, Potlatch, Ainsworth Lumber, Tolko Forest Products, Grant Forest Products, Norbord or J.M. Huber Corp. The lawsuit alleges:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> these companies conspired to fix and raise OSB prices in the U.S. during the class period and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> plaintiffs paid artificially inflated prices for OSB during that period. </TD></TR></TBODY></TABLE> No specific damages were alleged, but the direct and indirect plaintiffs estimated total damages from all defendants, with trebling, of $4.9 billion. This amount is lower than previously reported because the plaintiffs’ experts modified their opinions and because the end of the class period was limited to February 2006. Status. The U.S. District Court in Pennsylvania issued a number of rulings approving class action status for various classes of direct and indirect purchasers for the period from June 2002 through February 2006. In March 2008 we reached a settlement in principle with the direct purchasers for $18 million and we recognized a charge of $18 million in the first quarter of 2008. The settlement was finalized in June. The court conducted a hearing on Weyerhaeuser’s settlement with direct purchaser plaintiffs on August 5, 2008. A formal settlement agreement with the indirect purchasers for $1 million was signed August 4, 2008. Both settlement agreements received preliminary court approval. A hearing on final approval is scheduled for November 24, 2008. Events and Rulings. Here is a chronology of the litigation:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2006 – Numerous individual cases were consolidated into one lawsuit filed in U.S. District Court in Pennsylvania seeking class action status for direct purchasers of OSB. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2006 – Additional lawsuits filed on behalf of indirect purchasers of OSB in different states where such claims are possible under state law were consolidated in U.S. District in Pennsylvania. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2006 – The court dismissed with prejudice the claims filed by the Pennsylvania indirect purchasers. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – The U.S. District Court in Pennsylvania: </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="7%"> </TD> <TD vAlign=top align=left width="3%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> certified a class of direct purchasers who purchased OSB structural panel products directly from defendants from June 1, 2002 to February 24, 2006; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="7%"> </TD> <TD vAlign=top align=left width="3%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> certified a class of nationwide indirect purchaser end users who indirectly purchased for their own use and not for resale, new OSB manufactured or sold by one or more of the defendants between June 1, 2002 and February 24, 2006; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="7%"> </TD> <TD vAlign=top align=left width="3%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> excluded persons who purchased OSB already incorporated into a house or other structure; and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="7%"> </TD> <TD vAlign=top align=left width="3%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> certified a multi-state class of indirect purchasers from 17 states. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – The U.S. Court of Appeals for the Third Circuit denied the separate petitions of the defendants and the indirect purchaser plaintiffs for leave to appeal the class certification order. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – Individual and joint motions for summary judgment were filed in December on behalf of the remaining defendants, including us. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2008 – In March, we settled in principle with the direct purchasers of OSB for $18 million and a charge of $18 million was recognized in the first quarter of 2008. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2008 – In April, we settled in principle with the indirect purchasers for $1 million. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2008 – The court granted preliminary approval for the settlements with direct and indirect purchaser classes. </TD></TR></TBODY></TABLE>   Paragon Trade Brands, Inc. Litigation The Equity Committee filed claims against us in 1999 in the Paragon Trade Brands, Inc. bankruptcy proceeding in the U.S. Bankruptcy Court for the Northern District of Georgia. The Equity Committee (later replaced by a litigation claims representative) asserted we breached certain warranties in our agreements with Paragon connected with its public offering of common stock in February 1993. The Equity Committee sought to recover damages sustained by Paragon in two patent-infringement cases – one brought by Procter & Gamble and the other by Kimberly-Clark. Status. In 2005 the U.S. Bankruptcy Court imposed damages of approximately $470 million on us. We appealed the liability and damages determinations to the U.S. District Court for the Northern District of Georgia. In September 2007, the U.S. District Court for the Northern District of Georgia issued an order reversing the U.S. Bankruptcy Court’s decision and directed the court clerk to enter judgment in our favor. In October 2007 the Litigation Claims Representative appealed the decision to the U.S. Court of Appeals for the Eleventh Circuit. In May 2008 the Eleventh Circuit upheld the District Court’s opinion and upheld a judgment in our favor. The Bankruptcy Court reopened the matter and the parties filed a joint motion to distribute the remaining assets in the bankruptcy estate of approximately $7 million to us. In August the court signed the joint motion directing that funds be distributed t o us. Events and Rulings. Here is a chronology of the litigation:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 1999 – The Equity Committee in the Paragon Trade Brands, Inc. bankruptcy proceeding began its proceeding against us in U.S. Bankruptcy Court for the Northern District of Georgia. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2002 – The Bankruptcy Court held us liable for breaches of warranty. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2005 –The Bankruptcy Court imposed damages of $470 million on us. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2005 – We appealed the liability and damages determination to the U.S. District Court for the Northern District of Georgia and posted a $500 million bond. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – The U.S. District Court for the Northern District of Georgia issued an order reversing the U.S. Bankruptcy Court’s decision and directing the court clerk to enter judgment in our favor. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2007 – The Litigation Claims Representative appealed the U.S. District Court’s decision to the U.S. Court of Appeals for the Eleventh Circuit and we cancelled the $500 million bond that had been posted. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2008 – The Eleventh Circuit Court of Appeals affirmed the decision of the U.S. District Court. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 2008 – The Bankruptcy Court reopened the matter and the parties filed a joint motion to distribute remaining assets to Weyerhaeuser. In August, the court signed a joint motion directing that funds be distributed to us. Funds were received and the case is closed. </TD></TR></TBODY></TABLE> ENVIRONMENTAL MATTERS The issues we have concerning environmental matters are:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> site remediation and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> asbestos removal. </TD></TR></TBODY></TABLE> Site Remediation Under the Comprehensive Environmental Response Compensation and Liability Act – commonly known as the Superfund – and similar state laws, we:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> are a party to various proceedings related to the cleanup of hazardous waste sites and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> have been notified that we may be a potentially responsible party related to the cleanup of other hazardous waste sites for which proceedings have not yet been initiated. </TD></TR></TBODY></TABLE> Our Established Reserves. We have established reserves for estimated remediation costs on the active Superfund sites and other sites for which we are responsible. Changes in the Reserve for Environmental Remediation   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="96%"></TD> <TD vAlign=bottom width="2%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom colSpan=2> </TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Reserve balance as of December 30, 2007</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>27</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Remediation costs accrued</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>18</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Remediation payments</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(7</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Reserve balance as of September 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>38</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Total active sites as of September 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>56</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> During the first quarter of 2008, we recognized a charge of $17 million for an adjustment to increase our reserve for environmental remediation. The increase was primarily a result of including additional years during which we are required to perform ongoing monitoring activities at certain sites. The other changes in our reserves for remediation costs reflect:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> additional information on all sites concerning implementation of remediation alternatives, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> updates on prior cost estimates and new sites and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> costs incurred to remediate sites. </TD></TR></TBODY></TABLE> Estimates. We believe it is reasonably possible – based on currently available information and analysis – that remediation costs for all identified sites may exceed our reserves by up to $30 million. That estimate – in which those additional costs may be incurred over several years – is the upper end of the range of reasonably possible additional costs. The estimate:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> is much less certain than the estimates on which our accruals are currently based and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> uses assumptions that are less favorable to us among the range of reasonably possible outcomes. </TD></TR></TBODY></TABLE> In estimating our current accruals and the possible range of additional future costs, we:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> assumed we will not bear the entire cost of remediation of every site, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> took into account the ability of other potentially responsible parties to participate and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> considered each party’s financial condition and probable contribution on a per-site basis. </TD></TR></TBODY></TABLE> We have not recorded any amounts for potential recoveries from insurance carriers. Asbestos Removal We have not recognized a liability for the removal and disposal of encapsulated asbestos from all facilities and equipment. That is because we cannot reasonably:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> estimate the fair value of our obligations or </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> determine the date on which the encapsulated asbestos will be removed. </TD></TR></TBODY></TABLE> When we are able to reasonably estimate the fair value, we will establish a liability as appropriate.

1.80

NOTE 15: COMPREHENSIVE INCOME (LOSS) Our comprehensive income (loss), net of tax, was income of $27 million and a loss of $44 million for the 13 and 39-week periods ended September 28, 2008, respectively.   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="58%"></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTY-NINE WEEKS ENDED</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Net earnings</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>280</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>101</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>36</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>853</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Other comprehensive income:</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Foreign currency translation adjustments</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(37</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>82</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(71</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>171</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Net actuarial gains (losses), net of tax</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(213</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(187</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>10</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Prior service credits, net of tax</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>170</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>19</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Net derivative gains (losses) on cash flow hedges, net of tax</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(6</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>6</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>15</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>34</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Reclassification of net (gains) losses on cash flow hedges, net of tax</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(5</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(6</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(20</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Unrealized losses on available-for-sale securities</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>27</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>190</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(44</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>1,067</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> Net actuarial losses for the third quarter of 2008 include pretax actuarial losses of $456 million related to the remeasurement of pension plan assets, partially offset by $126 million of net actuarial gains resulting from the remeasurements of liabilities in all of the company’s pension plans for U.S. employees, the postretirement benefit plans for U.S. hourly employees, and certain postretirement plans for Canadian salaried employees. The U.S. plans were remeasured as a result of the sale of the Containerboard, Packaging and Recycling business. The Canadian plans were remeasured as a result of closures in Canada. There was an additional $19 million reduction of deferred actuarial gains that were recognized in third quarter earnings as part of the net gain on the sale of the Containerboard, Packaging and Recycling business. The after-tax effect of these items was a reduction of accumulated other comprehensive income o f $213 million. Net actuarial gains (losses) for the 39 weeks ended September 28, 2008, also include pretax actuarial gains of $29 million generated by the second quarter 2008 remeasurement of the U.S. salaried postretirement plans’ liabilities and $18 million specifically related to the change in discount rates at remeasurement on June 29, 2008. The after-tax amount was an increase in accumulated other comprehensive income of $26 million. The prior service credits for the third quarter 2008 reflects the recognition of $81 million in previously deferred pretax prior service costs in connection with the sale of the Containerboard, Packaging and Recycling business, partially offset by the deferral of a pretax cost of $23 million related to amendments made to certain hourly pension plans in 2008. The after-tax effect of these items was an increase in accumulated other comprehensive income of $25 million. The prior service credit for the 39 weeks ended September 28, 2008, also includes a pretax credit of $318 million for the reduction in liabilities resulting from the second quarter amendments to the postretirement plans for U.S. salaried employees, offset by the full recognition in earnings of a $52 million pre-existing prior service credit. The net pretax effect of these items was $266 million and the after-tax effect was an increase in accumulated other comprehensive income of $160 million. In the 13 and 39-week periods ended September 28, 2008, we also recognized after-tax amortization of prior service credits for all of our pension and postretirement plans of $23 million and $14 million, respectively. Cumulative Other Comprehensive Income Our cumulative other comprehensive income, net of tax, was $907 million as of September 28, 2008. Items Included in Our Cumulative Other Comprehensive Income, net of tax   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="75%"></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>DECEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Foreign currency translation adjustments</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>456</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>527</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top noWrap> Net pension and other postretirement benefit gain not yet recognized in earnings</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>357</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>544</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Prior service credit (cost) not yet recognized in earnings</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>87</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(83</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Cash flow hedge fair value adjustments</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(5</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Unrealized gains on available-for-sale securities</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>907</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>987</TD> <TD vAlign=bottom noWrap> </TD></TR></TBODY></TABLE>

516000000

726000000

7315000000

NOTE 10: REAL ESTATE ASSET IMPAIRMENTS AND OTHER INVESTMENT-RELATED CHARGES We review our long-lived assets and investments each quarter to determine if they are properly recorded. These assets are stated at cost unless events or circumstances trigger an impairment review. If a triggering event occurs and the asset’s carrying amount is not recoverable, we record an impairment loss, which is the difference between the asset’s book value and fair value. The determination of fair value is based on appraisals and market pricing of comparable assets when that information is available, or the discounted value of estimated future net cash flows from these assets. During 2008, unfavorable market conditions caused us to re-evaluate our strategy to develop certain projects, reduce sales prices, increase customer incentives, or reassess the recoverability of our investments, which triggered impairment charges. Write downs of impaired assets are recorded as adjustments to the cost basis of inventory and investments. Total Real Estate Impairment and Other Investment-Related Charges   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="54%"></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=5>THIRTY-NINE WEEKS ENDED</TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top noWrap> Impairment charges for long-lived assets</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>226</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>23</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>505</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>35</TD></TR> <TR> <TD vAlign=top noWrap> Impairment and other investment-related charges</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>6</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>81</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>5</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Write-off of pre-acquisition costs</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>16</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>235</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>27</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>602</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>43</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD></TR></TBODY></TABLE> Impairment charges for long-lived assets relate to homebuilding operations. Impairment and other investment-related charges relate to loans and investments in unconsolidated entities. Impairment and other investment-related charges for the 39-week periods ended September 28, 2008 and September 30, 2007 include allowances and impairment charges of $68 million and $5 million, respectively. 2008 also includes a $13 million charge related to an accrual for potential refunds of management fee income. Charges for the write-off of pre-acquisition costs are recorded in Real Estate costs and operating expenses in the accompanying consolidated statement of earnings. In addition to these impairment charges, Weyerhaeuser has recognized charges for the impairment of interest that was previously capitalized on Real Estate assets of $19 million and $47 million for the 13 and 39-week periods ended September 28, 2008, respectively. These charges are classified as Weyerhaeuser other operating costs in the accompanying consolidated statement of earnings. Refer to Note 9: Other Operating Costs, Net for additional information.

NOTE 5: SHARE-BASED COMPENSATION In the 39 weeks ended September 28, 2008, we granted 1,900,855 stock options, 131,844 stock appreciation rights and 455,669 restricted stock units. The weighted average exercise price of the stock options granted in the first 39 weeks of 2008 was $62.05. Weighted Average Assumptions Used in Estimating the Value of Stock Options Granted During the First 39 Weeks of 2008   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="85%"></TD> <TD vAlign=bottom width="12%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=2>10-YEAR OPTIONS</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Expected volatility</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>30.84</TD> <TD vAlign=bottom noWrap>%</TD></TR> <TR> <TD vAlign=top> Expected dividends</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3.87</TD> <TD vAlign=bottom noWrap>%</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Expected term (in years)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>5.92</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Risk-free rate</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3.20</TD> <TD vAlign=bottom noWrap>%</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Weighted average fair value</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>13.74</TD> <TD vAlign=bottom noWrap> </TD></TR></TBODY></TABLE> Stock appreciation rights represent liability-classified awards that are remeasured to reflect the fair value at each reporting period. The following table shows the weighted average assumptions applied to all outstanding stock appreciation rights as of September 28, 2008.   Weighted Average Assumptions Used to Remeasure the Value of Stock Appreciation Rights as of September 28, 2008   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="87%"></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Expected volatility</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>34.64</TD> <TD vAlign=bottom noWrap>%</TD></TR> <TR> <TD vAlign=top> Expected dividends</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3.85</TD> <TD vAlign=bottom noWrap>%</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Expected term (in years)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3.41</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Risk-free rate</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2.64</TD> <TD vAlign=bottom noWrap>%</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Weighted average fair value</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>11.15</TD> <TD vAlign=bottom noWrap> </TD></TR></TBODY></TABLE> The weighted average fair value of the restricted stock units granted in the 39 weeks ended September 28, 2008 was $63.54. The post-termination vesting provisions for restricted stock units granted in 2008 differed from previous grants by allowing for immediate or continued vesting of awards in the event of death, disability, job elimination or retirement, including early retirement. As a result, the expense associated with certain of the restricted stock units granted in 2008 will be recognized over a required service period that is less than the stated four-year vesting period.

17000000

-21000000

-642000000

-1216000000

-3.04

678000000

3.21

-574000000

13000000

1026000000

-158000000

163000000

-56000000

43000000

391000000

NOTE 11: INVENTORIES Weyerhaeuser inventories include raw materials, work-in-process and finished goods.   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="76%"></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>DECEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Logs and chips</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>37</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>69</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Lumber, plywood, panels and engineered lumber</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>270</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>346</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Pulp and paper</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>105</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>99</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Containerboard and packaging</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>235</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Other products</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>157</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>191</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Materials and supplies</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>153</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>315</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>722</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,255</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Less: assets held for sale</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(10</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(460</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>712</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>795</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE>

-1087000000

5223000000

-148000000

36000000

-36000000

-992000000

NOTE 1: BASIS OF PRESENTATION Our consolidated financial statements provide an overall view of our results and financial condition. They include our accounts and the accounts of entities that we control, including:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> majority-owned domestic and foreign subsidiaries and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> variable interest entities in which we are the primary beneficiary. </TD></TR></TBODY></TABLE> They do not include our intercompany transactions and accounts, which are eliminated. We account for investments in and advances to unconsolidated equity affiliates using the equity method, with taxes provided on undistributed earnings unless indefinitely invested. This means that we generally record earnings and accrue taxes in the period that the earnings are recognized by our unconsolidated equity affiliates. We report our financial results and condition in two groups:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Weyerhaeuser – our forest products-based operations, principally the growing and harvesting of timber and the manufacture, distribution and sale of forest products; and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Real Estate – our real estate development and construction operations and our other real estate-related activities. </TD></TR></TBODY></TABLE> Throughout these Notes to Consolidated Financial Statements, unless specified otherwise, references to “we” and “our” refer to the consolidated company, including both Weyerhaeuser and Real Estate. The accompanying unaudited Consolidated Financial Statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations, and cash flows for the interim periods presented. Except as otherwise disclosed in the Notes to Consolidated Financial Statements, such adjustments are of a normal, recurring nature. The Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements; as such certain disclosures normally provided in accordance with accounting principles generally accepted in the United States have been omitted. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations included i n our Annual Report on Form 10-K for the year ended December 30, 2007. RECLASSIFICATIONS We have reclassified certain balances and results from the prior year for consistency with our 2008 reporting. This makes year-to-year comparisons easier. Our reclassifications had no effect on net earnings or shareholders’ interest. Note 3: Discontinued Operations and Assets Held for Sale provides a summary of the results of discontinued operations and the balances and results associated with discontinued operations. REVISION OF RESULTS FOR THE 39-WEEK PERIOD ENDED SEPTEMBER 30, 2007 We have revised our results for the 39-week period ended September 30, 2007 from amounts that were reported in our Quarterly Report on Form 10-Q for the period ended September 30, 2007. The revision reflects a first quarter 2007 adjustment to reduce the net gain on the Domtar Transaction by $35 million after taxes. This adjustment is included in discontinued operations on the Consolidated Statement of Earnings.

-13000000

380000000

295000000

701000000

-137000000

NOTE 14: PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS We recognized net pension and other postretirement benefit credits of $3 million and $77 million during the 13 and 39-week periods ended September 28, 2008, respectively, compared to net pension and other postretirement credits of $6 million and cost of $51 million in the 13 and 39-week periods ended September 30, 2007, respectively. The components of net periodic benefit (credits) costs are:   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="56%"></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=14>PENSION</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTY-NINE WEEKS ENDED</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Service cost</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>19</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>29</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>79</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>94</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Interest cost</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>73</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>65</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>224</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>205</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Expected return on plan assets</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(141</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(124</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(428</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(386</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Amortization of loss (gain)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(8</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(2</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(18</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Amortization of prior service costs</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>6</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>8</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>23</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>25</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Loss (gain) due to curtailment, settlement and special termination benefits, net</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>58</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(3</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>59</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>52</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>7</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(27</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(61</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(9</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="56%"></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="9%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=14>OTHER POSTRETIREMENT BENEFITS</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTY-NINE WEEKS ENDED</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Service cost</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>5</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>11</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>14</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Interest cost</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>13</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>12</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>45</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>39</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Amortization of loss</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>6</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>6</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>15</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>18</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Amortization of prior service credits</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(30</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(2</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(35</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(6</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Gain due to curtailment, settlement and special termination benefits, net</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(52</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(5</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(10</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>21</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(16</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>60</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> PENSION BENEFITS As part of the sale of our Containerboard, Packaging and Recycling business to International Paper in the third quarter of 2008, one of our qualified pension plans was transferred to and assumed by International Paper. We also remeasured the assets and obligations of all of our U.S. pension plans in connection with the transaction. The pension plans are typically remeasured at fiscal year end and at January 1 unless a significant event occurs that requires remeasurement. Refer to Note 3: Discontinued Operations and Assets Held for Sale for additional information about the transaction. The net effect of the sale of the Containerboard, Packaging and Recycling business and plans’ remeasurements at January 1 and the transaction measurement date was as follows:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> We recognized a $59 million charge in the third quarter of 2008 for settlement of the qualified pension plan that was transferred to International Paper and other plan curtailments and special termination benefits related to the transaction. This charge is included in the net gain on the sale of the Containerboard, Packaging and Recycling business and is presented in discontinued operations in the accompanying consolidated statement of earnings. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> The net funded status of our U.S. qualified pension plans, which is reflected as pension assets on the accompanying consolidated balance sheet, was reduced by $346 million. The fair value of the plans’ assets declined by more than the plans’ liabilities which were reduced in connection with the sale transaction. The net reduction in the funded status includes a net actuarial loss of $325 million generated by the remeasurements of the assets and liabilities of all of our U.S. qualified pension plans, an increase in liability of $23 million for negotiated plan amendments, and a net increase in funded status of $2 million resulting from the sale of our Containerboard, Packaging and Recycling business. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Non-qualified pension liabilities increased by $19 million due to the remeasurements of the plans’ liabilities. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Net deferred tax liabilities decreased by $109 million. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Shareholders’ interest decreased by $197 million for changes in accumulated other comprehensive income, reflecting the net effect of the items discussed above. Amounts deferred in accumulated other comprehensive income will be amortized into net periodic pension cost (credits) in future periods. </TD></TR></TBODY></TABLE> The discount rate used to remeasure the pension plans’ liabilities was changed from a rate of 6.5 percent at December 30, 2007 and January 1, 2008, to rates reflective of current bond rates on the remeasurement date for the transaction. A discount rate of 7.2 percent was used as of July 31, 2008. The discount rate assumed to value lump sum benefits was unchanged at 5.5 percent. There was no change to the expected rate of return assumption. This transaction and the subsequent remeasurement resulted in an increase in the amount of pension income that is being recognized from August 4, 2008 to the end of the year. The loss due to curtailment, settlement and special termination benefits, net for the 39-weeks ended September 30, 2007, is primarily related to the Domtar Transaction, which included the transfer of four Canadian pension plans. This loss is recorded as part of the net gain on the Domtar Transaction and is presented in discontinued operations. Refer to Note 3: Discontinued Operations and Assets Held for Sale for additional information about the Domtar Transaction. Beginning in first quarter 2008, normal net pension (income) expense for Weyerhaeuser is recorded in the Corporate and Other segment. See additional discussion in Note 17: Business Segments. OTHER POSTRETIREMENT BENEFITS During the second quarter of 2008, we announced amendments to our postretirement medical and life insurance benefit plans for U.S. salaried employees that reduce or eliminate certain medical and life insurance benefits that are available to both past and present employees. These changes reduce amounts that we expect to pay in the future to fund the benefit plans and resulted in a significant decrease in our postretirement liabilities. Some of this reduction is recognized in earnings immediately in the form of a curtailment gain and pertains to the elimination of benefits for those employees who do not meet specified eligibility requirements. The remainder of the benefit is deferred in accumulated other comprehensive income, a component of shareholders’ interest, and will be recognized as part of our net periodic postretirement (benefit) expense through 2009. The net effect of the plan amendments and the remeasurements was as follows:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> A curtailment gain of $52 million was recognized in the second quarter of 2008 for full recognition of the pre-existing prior service credit. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Postretirement liabilities were reduced by $365 million. This includes a reduction in the plans’ liabilities of $318 million for the plan amendments, an actuarial gain of $29 million generated by the remeasurement of the plans’ liabilities at January 1, 2008 and an actuarial gain of $18 million generated by the change in discount rates at remeasurement on June 29, 2008. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Net deferred tax liabilities increased by $127 million. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Shareholders’ interest increased by $186 million for changes in accumulated other comprehensive income, reflecting the net effect of the items discussed above. </TD></TR></TBODY></TABLE> The discount rate used to remeasure the postretirement plans’ liabilities was changed from a rate of 6.5 percent at December 30, 2007 and January 1, 2008, to rates reflective of current bond rates on the date of remeasurement for the plan amendments. A rate of 7.0 percent was used to measure the elimination of medical plan benefits for current employees who will not meet eligibility requirements by January 1, 2010 and a rate of 6.6 percent was used to measure the ongoing plan benefits, as amended, for those employees and retirees who meet the eligibility requirements.   As a result of the plan amendments and the $186 million net benefit that was deferred in accumulated other comprehensive income, we expect the net benefit that will be amortized out of accumulated other comprehensive income, which will be included in net periodic postretirement (benefit) expense for fiscal year 2008, will be approximately $50 million higher than the expected amounts of amortization of prior service credits and actuarial losses that were disclosed in our Annual Report on Form 10-K for the year ended December 30, 2007. During the third quarter of 2008, the sale of our Containerboard, Packaging and Recycling business triggered the remeasurement of the postretirement benefit plans for U.S. hourly employees. These liabilities were previously remeasured at January 1, 2008. The remeasurement of liabilities for the transaction reflected both a change in the discount rate and the curtailment of future benefits for employees that transferred to International Paper who were not eligible for these benefits at their date of transfer. The net effect of the remeasurements resulted in a $13 million reduction in our postretirement liabilities and a corresponding increase in accumulated other comprehensive income in the third quarter. Beginning in third quarter 2008, normal postretirement (income) expense for Weyerhaeuser is reported in the Corporate and Other segment, with the exception of certain union-negotiated benefits that are reflected in the Cellulose Fibers segment. See additional discussion in Note 17: Business Segments.

-32000000

-480000000

6413000000

45000000

4000000

199000000

NOTE 6: CHARGES FOR RESTRUCTURING Weyerhaeuser charges for restructuring include the following costs recognized in connection with business restructuring and overall cost reduction efforts:   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="52%"></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=5>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=5>THIRTY-NINE WEEKS ENDED</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Termination benefits</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>10</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>16</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>50</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>21</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top noWrap> Less: Discontinued operations (charges) credits</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>11</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>16</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>51</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>20</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> The charges recognized in the 13 and 39-week periods ended September 28, 2008 are primarily related to corporate restructuring activities. The charges recognized in both the 13 and 39-week periods ended September 30, 2007 included the restructuring of an administration facility in Kamloops, British Columbia covering various business functions. Changes in Our Accrued Termination Benefits Related to Restructuring During the 39-week Period Ended September 28, 2008   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="95%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom colSpan=2> </TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Accrued severance as of December 30, 2007</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>31</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Charges</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>50</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Payments</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(25</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Accrued severance as of September 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>56</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> The majority of the accrued severance balance as of September 28, 2008 is expected to be paid by the end of 2009.

6323000000

NOTE 12: GOODWILL Goodwill is the purchase price minus the fair value of net assets we’ve acquired through business acquisitions and combinations. This note includes information about changes in the carrying amount of our goodwill. Changes in the Carrying Amount of Goodwill   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="48%"></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="5%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>TIMBERLANDS</TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>WOOD PRODUCTS</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>CELLULOSE FIBERS</TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>CONTAINERBOARD, PACKAGING, AND RECYCLING</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>CORPORATE AND OTHER</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>TOTAL</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Balance as of December 30, 2007</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>40</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>813</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>93</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>1,245</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>16</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>2,207</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Less: assets held for sale</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1,245</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(15</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1,260</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Balance as of December 30, 2007, excluding assets held for sale</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>40</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>813</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>93</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>947</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Impairment of goodwill</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(11</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(11</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Effect of foreign currency translation and other adjustments</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(16</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(17</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Balance as of September 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>40</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>786</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>93</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>919</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> As discussed in Note 3: Discontinued Operations and Assets Held for Sale, impairments of goodwill in 2008 relate to certain U.S. wood products distribution facilities and the Trus Joist® Commercial division. In 2007, we recognized $22 million of goodwill impairment in connection with the sale of our Canadian distribution facilities.

NOTE 2: ACCOUNTING PRONOUNCEMENTS ACCOUNTING CHANGES WE IMPLEMENTED IN 2008 Fair Value Measurements for Financial Assets and Financial Liabilities Statement 157 – Statement of Financial Accounting Standards No. 157, Fair Value Measurements – was adopted for financial assets and financial liabilities in the first quarter of 2008. Issued by the FASB in September 2006, Statement 157:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> provides a common definition of fair value, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> establishes a framework for measuring fair value in generally accepted accounting principles and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> expands disclosures about fair value instruments. </TD></TR></TBODY></TABLE> It applies when other accounting standards require or permit fair value measurements. However, it does not require any new fair value measurements. In February 2008, the Financial Accounting Standards Board (FASB) issued FASB Staff Position (FSP) No. 157-2, Effective Date of FASB Statement No. 157, which delayed the effective date of Statement 157 for certain non-financial assets and non-financial liabilities to our fiscal year 2009. Statement 157 was applicable to our commodity cash flow hedges and available-for-sale securities in the first quarter of 2008, neither of which are material. As a result, the implementation of Statement 157 for financial assets and financial liabilities did not have a material impact on our financial position or results of operations and did not result in any additional disclosures. ACCOUNTING CHANGES THAT TAKE EFFECT IN 2009 Several accounting changes are scheduled to take effect in 2009 and are related to:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> fair value measurements for certain non-financial assets and non-financial liabilities, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> business combinations, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> non-controlling interests, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> disclosures about derivative instruments and hedging activities and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> determining the useful life of intangible assets. </TD></TR></TBODY></TABLE>   Fair Value Measurements for Non-Financial Assets and Non-Financial Liabilities As discussed above, Statement 157 will be effective for certain non-financial assets and non-financial liabilities in the first quarter of our fiscal year 2009. Assets and liabilities that are measured at fair value, but for which we have not yet applied the provisions of Statement 157 include:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> long-lived assets (asset groups) measured at fair value for an impairment assessment, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> reporting units measured at fair value in the first step of a goodwill impairment test, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> non-financial assets and non-financial liabilities measured at fair value in the second step of a goodwill impairment assessment and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> asset retirement obligations initially measured at fair value. </TD></TR></TBODY></TABLE> Statement 157 will be applicable to future fair value measurements associated primarily with impairment assessments. We expect the adoption of Statement 157 will not have a material effect on our financial position, results of operation or cash flows, but may require additional disclosures. As disclosed in these financial statements we have recognized significant impairments in 2008 and future economic events and decisions may trigger additional impairments in the future. Business Combinations Statement 141R – Statement of Financial Accounting Standards No. 141 (revised 2007), Business Combinations – takes effect in the first quarter of our fiscal year 2009. Issued by the FASB in December 2007, Statement 141R will be applied to business combinations occurring after the effective date. Statement 141R:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> expands the definition of a business and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> changes the accounting for business combinations, including how an acquirer recognizes and measures the identifiable assets acquired, the cost of the acquisition, the liabilities assumed, any non-controlling interest in the acquiree and the goodwill acquired. </TD></TR></TBODY></TABLE> Statement 141R will be applicable to future business combinations, and will not have a material effect on our financial position, results of operations or cash flows prior to such acquisitions. Non-controlling Interests Statement 160 – Statement of Financial Accounting Standards No. 160, Non-controlling Interests in Consolidated Financial Statements – An Amendment of ARB No. 51 – takes effect in the first quarter of our fiscal year 2009. Issued by the FASB in December 2007, Statement 160:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> changes the accounting for non-controlling (minority) interests in consolidated financial statements, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> requires non-controlling interests to be presented as a separate component of equity, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> changes the income statement presentation of income or losses attributable to non-controlling interests and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> revises the accounting for both increases and decreases in a parent’s controlling ownership interest. </TD></TR></TBODY></TABLE> We expect the adoption of Statement 160 will not have a material effect on our financial position, results of operations or cash flows. Disclosures about Derivative Instruments and Hedging Activities Statement 161 – Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No. 133 – takes effect in the first quarter of our fiscal year 2009. Statement 161:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> requires qualitative disclosures about objectives and strategies for using derivatives, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> requires quantitative disclosures about fair value amounts of and gains and losses on derivative instruments and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> requires disclosures about credit-risk-related contingent features in derivative agreements. </TD></TR></TBODY></TABLE> We expect the adoption of Statement 161 will not have a material effect on our financial statement disclosures. Determining the Useful Life of Intangible Assets FSP 142-3 – FASB Staff Position 142-3, Determination of the Useful Life of Intangible Assets – takes effect in the first quarter of our fiscal year 2009. FSP 142-3:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> provides guidance on estimating the useful life of recognized intangible assets, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> requires consideration of all pertinent factors, including historical experience, when estimating the useful life of intangible assets and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> establishes additional disclosure requirements related to accounting for intangible assets. </TD></TR></TBODY></TABLE> We expect the adoption of FSP 142-3 will not have a material effect on our financial position, results of operations and disclosures.

NOTE 9: OTHER OPERATING COSTS, NET Other operating costs, net:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> exclude our Real Estate operations, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> include both recurring and occasional income and expense items and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> can fluctuate from year to year. </TD></TR></TBODY></TABLE> Various Income and Expense Items Included in Weyerhaeuser Other Operating Costs, Net   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="58%"></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTY-NINE WEEKS ENDED</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Gain on the sale of Containerboard, Packaging & Recycling operations (Note 3)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(1,173</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(1,173</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Gain on the sale of Australian operations (Note 3)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(211</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(211</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Gain on the Domtar Transaction (Note 3)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(625</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Gain from change in post-retirement benefits (Note 14)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(52</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Gain on disposition of assets</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(5</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(11</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(19</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(42</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Asset impairment charges other than for closures</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>50</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>78</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>46</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Charges for environmental remediation reserve (Note 16)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>18</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Net charges (reversals) related to legal matters</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(5</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(36</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>25</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Foreign exchange (gains) losses, net</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>13</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(3</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>21</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(39</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Other, net</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>20</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>6</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(6</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>10</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1,310</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(44</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1,319</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(646</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Less: discontinued operations</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,360</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>49</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,399</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>710</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>50</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>5</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>80</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>64</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> The total pretax gain on the sale of our Australian operations was $217 million; $211 million was recorded in other operating expenses and $6 million was recorded in equity in income of affiliates. The full $217 million is presented on the consolidated statement of earnings as earnings from discontinued operations, net of taxes.   Weyerhaeuser asset impairment charges during the third quarter and year-to-date 2008 relate primarily to held-for-sale assets of the Trus Joist® Commercial division in Wood Products and capitalized interest on Real Estate projects that are impaired. Year-to-date 2007 includes pretax charges of $37 million related to Wood Products facilities that had been offered for sale. Foreign exchange (gains) losses result from changes in exchange rates, primarily related to Weyerhaeuser’s Canadian and New Zealand operations

NOTE 17: BUSINESS SEGMENTS We principally are engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate development and construction. Our principal business segments are:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Timberlands – which includes North American logs, chips and timber, and international timberlands and related converting operations; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Wood Products – which includes softwood lumber, engineered lumber, structural panels, hardwood lumber and building materials distribution; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Cellulose Fibers – which includes pulp, liquid packaging board and an equity interest in a newsprint joint venture; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Containerboard, Packaging and Recycling – sold in August 2008; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Real Estate – which includes real estate development, construction and sales; and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Corporate and Other – which includes governance-related corporate support activities and transportation and results of international operations outside of North America that have been sold. We also may record one-time gains or charges in the Corporate and Other segment related to dispositions or events that are not related to an individual operating segment. </TD></TR></TBODY></TABLE> The following changes made during 2008 and 2007 affect the comparability of segment results: During 2008:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> we reclassified Weyerhaeuser’s international operations outside of North America from the Corporate and Other segment to the Timberlands segment, and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> we changed our process of allocating pension and postretirement costs (credits) to the operating segments. </TD></TR></TBODY></TABLE> During 2007:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> we completed the Domtar Transaction, which affected several of the company’s segments. </TD></TR></TBODY></TABLE> International operations Effective July 2008, there were changes in senior management responsibility for Weyerhaeuser’s international operations outside of North America, which consist primarily of timberlands and related converting operations in South America. As a result, these operations, which previously were reported as part of the Corporate and Other segment are now reported as part of the Timberlands segment. Results of international operations that have been disposed of and results of the company’s investment in Uruguay, prior to its restructuring in second quarter 2008, continue to be reported in the Corporate and Other segment. Segment results for prior periods have been recast to present information consistent with the current presentation. Allocation of pension and postretirement credits (costs) 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. Domtar Transaction In the first quarter of 2007 we divested our fine paper business and related assets through completion of the Domtar Transaction. The majority of the operations that were divested as a result of the Domtar Transaction are included in the Fine Paper segment. The additional related assets are included in the following segments:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Cellulose Fibers – which includes the Kamloops, British Columbia cellulose fiber operations and also includes sales of cellulose fiber produced in four mills with integrated paper and cellulose fiber operations. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Wood Products – which includes the Ear Falls, Ontario, sawmill and activities associated with the Big River and Wapawekka, Saskatchewan sawmills that were closed in third quarter 2006. </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Timberlands – which includes forest licenses on 12.2 million acres associated with the Dryden, Ontario and Prince Albert, Saskatchewan facilities. </TD></TR></TBODY></TABLE> The pretax gain on the Domtar transaction is included in the Corporate and Other segment.   KEY FINANCIAL DATA BY BUSINESS SEGMENT Management evaluates segment performance based on the contribution to earnings of the respective segments. An analysis and reconciliation of the company’s business segment information to the respective information in the Consolidated Financial Statements is as follows:   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="56%"></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTY-NINE WEEKS ENDED</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Sales to and revenues from unaffiliated customers:</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> Timberlands</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>254</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>252</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>675</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>700</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Wood Products</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,006</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,449</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3,043</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4,581</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Cellulose Fibers</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>447</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>436</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,352</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,388</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Fine Paper</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>459</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Containerboard, Packaging and Recycling</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>497</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,293</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3,169</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3,846</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Real Estate</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>329</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>598</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,054</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,644</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Corporate and Other</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>88</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>118</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>331</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>316</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2,621</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4,146</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>9,624</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>12,934</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Less sales of discontinued operations (Note 3)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(514</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1,349</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(3,301</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(4,555</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2,107</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2,797</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>6,323</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>8,379</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Intersegment sales:</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Timberlands</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>253</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>329</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>821</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,040</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Wood Products</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>36</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>56</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>144</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>178</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Cellulose Fibers</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>7</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>34</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Fine Paper</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>43</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Containerboard, Packaging and Recycling</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>9</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Corporate and Other</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>8</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>9</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>28</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>32</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>298</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>399</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,002</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,336</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Total sales and revenues</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2,405</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3,196</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>7,325</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>9,715</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Intersegment eliminations</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(298</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(399</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1,002</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1,336</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>2,107</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>2,797</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>6,323</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>8,379</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Contribution (charge) to earnings:</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> Timberlands</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>107</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>163</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>322</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>479</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Wood Products</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(146</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(131</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(587</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(421</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Cellulose Fibers</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>78</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>79</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>176</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>149</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Fine Paper</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>20</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Containerboard, Packaging and Recycling</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>10</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>104</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>204</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>283</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Real Estate</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(316</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>60</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(727</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>182</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Corporate and Other</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,369</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(14</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,439</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>523</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,102</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>261</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>827</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,215</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Interest expense (Weyerhaeuser only, continuing and discontinued operations)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(126</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(131</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(385</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(458</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Less capitalized interest (Weyerhaeuser only)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>11</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>29</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>56</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>88</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Earnings before income taxes (continuing and discontinued operations)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>987</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>159</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>498</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>845</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Income tax benefit (expense) (continuing and discontinued operations)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(707</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(58</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(462</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>8</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Net earnings</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>280</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>101</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>36</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>853</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE>   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="76%"></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="7%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>DECEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Assets:</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> Timberlands</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>4,645</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>4,564</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Wood Products</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3,156</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3,573</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Cellulose Fibers</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2,558</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2,624</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Containerboard, Packaging and Recycling</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>5,090</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Real Estate</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3,270</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3,780</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Corporate and Other</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>10,911</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>6,519</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>24,540</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>26,150</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Less: intersegment eliminations</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(2,324</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(2,344</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>22,216</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>23,806</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE>   Following is a summary of net pension and post retirement income (expense) recognized by segment, excluding charges for curtailments, settlements and special termination benefits. Refer to Note 14: Pension and Other Post Retirement Benefit Plans for a discussion of these additional items.   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="60%"></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=6>THIRTY-NINE WEEKS ENDED</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Net pension income (expense):</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> Timberlands</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>3</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Wood Products</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>13</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>29</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Cellulose Fibers</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>6</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Fine Paper</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top noWrap> Containerboard, Packaging and Recycling</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>9</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>22</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Real Estate</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Corporate and Other</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>50</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>118</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>51</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>24</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>120</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>61</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Net postretirement benefits income (expense):</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Timberlands</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(2</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(3</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Wood Products</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(6</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(13</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(19</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Cellulose Fibers</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(4</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(7</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(9</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Fine Paper</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top noWrap> Containerboard, Packaging and Recycling</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(5</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(10</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(13</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Real Estate</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(3</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(2</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Corporate and Other</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>12</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(5</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(18</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>10</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(21</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(36</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(65</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE>

46000000

NOTE 4: NET EARNINGS (LOSS) PER SHARE This note provides details about how we calculate basic and diluted net earnings per share, and our shares with an anti-dilutive effect. HOW WE CALCULATE BASIC AND DILUTED NET EARNINGS PER SHARE Basic earnings per share is net earnings divided by the weighted average number of our outstanding common and exchangeable shares. Diluted earnings per share is net earnings divided by the sum of the:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> weighted average number of our outstanding common and exchangeable shares and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> the effect of our outstanding dilutive potential common shares. </TD></TR></TBODY></TABLE> Dilutive potential common shares may include:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> outstanding stock options, </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> restricted stock units or </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> performance share units. </TD></TR></TBODY></TABLE> We use the treasury stock method to calculate the effect of our outstanding dilutive potential common shares.   Components of Our Basic and Diluted Earnings per Share   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="52%"></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTY-NINE WEEKS ENDED</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom> DOLLAR AMOUNTS IN MILLIONS EXCEPT PER SHARE DATA, SHARES IN THOUSANDS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Loss from continuing operations</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(200</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(5</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(642</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(119</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Earnings from discontinued operations</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>480</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>106</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>678</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>972</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Net earnings available for common and exchangeable shareholders</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>280</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>101</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>36</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>853</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Weighted average outstanding shares of common and exchangeable stock (basic)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>211,284</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>215,154</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>211,247</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>222,028</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Dilutive effect of share-based awards</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Common and exchangeable stock and stock equivalents (diluted)</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>211,284</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>215,154</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>211,247</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>222,028</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Basic earnings (loss) per share:</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> Continuing operations</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(0.94</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(0.02</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(3.04</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(0.54</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Discontinued operations</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2.27</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>0.49</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3.21</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4.38</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Net earnings</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>1.33</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>0.47</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>0.17</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>3.84</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Diluted earnings (loss) per share:</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD> <TD vAlign=bottom></TD></TR> <TR> <TD vAlign=top> Continuing operations</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(0.94</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(0.02</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(3.04</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>(0.54</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Discontinued operations</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2.27</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>0.49</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>3.21</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>4.38</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top> Net earnings</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>1.33</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>0.47</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>0.17</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>3.84</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> The decrease in the basic weighted average number of shares outstanding from 2007 to 2008 reflects:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> the cancellation of 25,490,194 shares as part of the Domtar Transaction in March 2007; and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> the repurchase of 6,999,400 shares during 2007. </TD></TR></TBODY></TABLE> SHARES EXCLUDED FROM DILUTIVE EFFECT The following shares were not included in the computation of diluted earnings (loss) per share for the 13 and 39-week periods ended September 28, 2008 and September 30, 2007 due to the company’s net loss from continuing operations. However, some or all of these shares may be dilutive potential common shares in future periods. Potential Shares Not Included in the Computation of Diluted Earnings per Share   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="50%"></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=3>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=3>THIRTY-NINE WEEKS ENDED</TD></TR> <TR> <TD vAlign=bottom noWrap> SHARES IN THOUSANDS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle>SEPTEMBER 30, 2007</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Stock options</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>10,580</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>8,949</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>10,244</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>9,075</TD></TR> <TR> <TD vAlign=top> Performance share units</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>232</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>285</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>255</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>399</TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Restricted stock units</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>731</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>543</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>729</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom align=right>550</TD></TR></TBODY></TABLE> During the second quarter of 2008 all remaining exchangeable shares were exchanged for common shares. Balances related to exchangeable shares have been reclassified into common shares (at par value) and other capital on the accompanying consolidated balance sheet. NOTE 13: ACCRUED LIABILITIES Weyerhaeuser’s accrued liabilities were $2.2 billion as of September 28, 2008. They include payroll, income taxes, Social Security taxes, real and personal property taxes, interest and other items.   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="78%"></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="8%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>DECEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top noWrap> Payroll – wages and salaries, incentive awards, retirement and vacation pay</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>435</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>588</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Accrued Income Taxes</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,330</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>33</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Taxes – Social Security and real and personal property</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>43</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>63</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Interest</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>68</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>130</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Other</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>337</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>363</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2,213</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>1,177</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Less: discontinued operations</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(2</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(220</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>2,211</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>957</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> Accrued income taxes increased from December 30, 2007 mainly due to the taxes on the gain from the sale of our Containerboard, Packaging and Recycling business to International Paper. Refer to Note 3: Discontinued Operations and Assets Held for Sale for additional information about the sale of our Containerboard, Packaging and Recycling business. -38000000 0 22000000 0 36000000 147000000 -46000000 NOTE 7: CHARGES FOR CLOSURE OF FACILITIES Weyerhaeuser incurred the following charges for the curtailment and closure of facilities:   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="52%"></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD></TD> <TD vAlign=bottom width="10%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom> </TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=6>THIRTEEN WEEKS ENDED</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom noWrap align=middle colSpan=6>THIRTY-NINE WEEKS ENDED</TD> <TD vAlign=bottom> </TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 28, 2008</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-BOTTOM: #000000 1px solid" vAlign=bottom align=middle colSpan=2>SEPTEMBER 30, 2007</TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Asset impairment charges</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>2</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>9</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>51</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>19</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Termination benefits</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>9</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>36</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>19</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Other closure costs</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>2</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>12</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>9</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top noWrap> Reversal of closure charges recorded in prior periods</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(4</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(1</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(5</TD> <TD vAlign=bottom noWrap>)</TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(2</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR 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<TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top></TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>—  </TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>19</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>83</TD> <TD vAlign=bottom noWrap> </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>38</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD> <TD vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> The charges recognized during the 39-week period ended September 28, 2008, include asset impairment charges and severance costs related primarily to the curtailments and closures of an oriented strand board plant, two lumber mills, and a plywood mill, as well as additional costs recognized in connection with previously announced Wood Products closures. They also include charges related to the closures of two box plants, which are reported as discontinued operations. The charges recognized in 2007 include asset impairment charges and severance costs related primarily to the curtailments and closures of an engineered I-Joist plant, a veneer lathe, two lumber mills, and an oriented strand board plant, as well as additional costs recognized in connection with previously announced mill closures. Other closure costs include costs of demolishing plant and equipment, gain or loss on disposition of assets, environmental clean-up and general costs to wind down operating facilities.   Changes in Accrued Termination Benefits Related to Facility Closures During the 39-week Period Ended September 28, 2008.   <TABLE cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR> <TD width="95%"></TD> <TD vAlign=bottom width="3%"></TD> <TD></TD> <TD></TD> <TD></TD></TR> <TR> <TD vAlign=bottom noWrap> DOLLAR AMOUNTS IN MILLIONS</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom colSpan=2> </TD> <TD vAlign=bottom> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Accrued severance as of December 30, 2007</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>53</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR> <TD vAlign=top> Charges</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>36</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Payments</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(65</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR> <TD vAlign=top> Other adjustments</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom> </TD> <TD vAlign=bottom align=right>(3</TD> <TD vAlign=bottom noWrap>)</TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 1px solid" vAlign=bottom> </TD> <TD> </TD></TR> <TR bgColor=#cceeff> <TD vAlign=top> Accrued severance as of September 28, 2008</TD> <TD vAlign=bottom>  </TD> <TD vAlign=bottom>$</TD> <TD vAlign=bottom align=right>21</TD> <TD vAlign=bottom noWrap> </TD></TR> <TR style="FONT-SIZE: 1px"> <TD vAlign=bottom></TD> <TD vAlign=bottom>  </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD style="BORDER-TOP: #000000 3px double" vAlign=bottom> </TD> <TD> </TD></TR></TBODY></TABLE> The majority of the accrued severance balance as of September 28, 2008 is expected to be paid by the end of 2009. NOTE 8: RESTRUCTURING OF URUGUAY JOINT VENTURES During 2007, we began the process to restructure our ownership interests in Uruguay. As of December 30, 2007, Weyerhaeuser International Holdings Ltd (a wholly owned subsidiary) held a 50 percent ownership in each of the following three joint ventures:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Colonvade S.A., which acquires land and establishes pine and eucalyptus plantations in Uruguay; </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Los Piques S.A., which operates forestry and a plywood mill in Uruguay; and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> Vandora S.A., which operates forestry in Uruguay. </TD></TR></TBODY></TABLE> In December 2007, the joint venture partners entered into agreements to partition the assets of the joint ventures to their respective partners. The partitioning of the assets was completed in April 2008. After the partitioning of the assets, we retained full ownership of the entities identified above and the following assets that remained in those entities:   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> 66,000 hectares (approximately 163,000 acres) of forestlands in Uruguay and </TD></TR></TBODY></TABLE>   <TABLE style="BORDER-COLLAPSE: collapse" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD vAlign=top align=left width="2%">•</TD> <TD vAlign=top width="1%"> </TD> <TD vAlign=top align=left> the Los Piques plywood mill. </TD></TR></TBODY></TABLE> As part of the partitioning, we contributed $23 million, net of cash acquired, to obtain full ownership of the plywood mill. 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EX-100.SCH 3 wy-20080928.xsd XBRL TAXONOMY EXTENSION SCHEMA link:calculationLink link:presentationLink link:calculationLink link:presentationLink link:definitionLink link:calculationLink link:presentationLink link:definitionLink link:calculationLink link:presentationLink link:definitionLink EX-100.CAL 4 wy-20080928_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-100.DEF 5 wy-20080928_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-100.LAB 6 wy-20080928_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE Accounts payable Receivables, less discounts and allowances of $3 and $2 Accrued liabilities (Note 13) Accrued Liabilities Disclosure [Text Block] NOTE 13: ACCRUED LIABILITIES Depreciation and amortization Property and equipment, accumulated depreciation Depreciation, depletion and amortization Cumulative other comprehensive income (Note 15) Other capital (Note 4) This item represents the entity's proportionate share for the period of the undistributed net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment. Equity in income of affiliates and unconsolidated entities Equity in income of affiliates and unconsolidated entities Adjustments for Noncash Items Included in Income (Loss) [Abstract] Noncash charges (credits) to income: Receivables, discounts and allowances Receivables, allowances Charges for impairment of assets (Note 7, 9,10, and 12) Total assets ASSETS Total current assets Current assets: Assets held by special purpose entities. Restricted assets held by special purpose entities Current assets held for sale (Note 3) Noncurrent assets held for sale (Note 3) Cash and cash equivalents Cash and cash equivalents at end of period Cash and cash equivalents at beginning of period Cash and cash equivalents Net change in cash and cash equivalents Cash paid for the period for [Abstract] Cash paid (received) during the year for: Charges incurred for the curtailment and closure of facilities. NOTE 7: CHARGES FOR CLOSURE OF FACILITIES The charge against earnings in the period, comprised of costs incurred associated with an exit or disposal activity other than for a discontinued operations as defined under generally accepted accounting principles. Costs of such activities include those for one-time termination benefits, asset impairments and other closure charges. Charges for closure of facilities (Note 7) Commitments and contingencies (Note 16) NOTE 16: LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES Dividends paid per share Common shares: par value Common shares: authorized shares Common shares: issued shares Common shares: outstanding shares Common shares: $1.25 par value; authorized 400,000,000 shares; issued and outstanding: 211,288,512 and 209,546,474 shares NOTE 15: COMPREHENSIVE INCOME (LOSS) Consolidated assets not owned. Consolidated assets not owned Consolidated liabilities not owned. Consolidated liabilities not owned Construction in progress Costs of products sold Costs and operating expenses Total costs and expenses Costs and expenses: The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing and discontinued operations. Deferred income taxes, net Cumulative obligations for pension benefits attributed to past service that have not yet been expensed and other noncurrent assets not otherwise specified in the taxonomy. Deferred pension and other assets (Note 14) Deferred tax assets Deferred income taxes NOTE 10: REAL ESTATE ASSET IMPAIRMENTS AND OTHER INVESTMENT-RELATED CHARGES NOTE 5: SHARE-BASED COMPENSATION NOTE 3: DISCONTINUED OPERATIONS AND ASSETS HELD FOR SALE Net earnings Basic earnings (loss) per share (Note 4): Net earnings Diluted earnings (loss) per share (Note 4): This element may be used to capture disclosure pertaining to an entity's basic and diluted earnings per share. NOTE 4: NET EARNINGS (LOSS) PER SHARE Increase to environmental liability reserves (Note 16) Excess tax benefits from share-based payment arrangements Reclass of excess tax benefits from share-based payment arrangements to financing Total number of exchangeable shares of an entity that have been sold or granted to shareholders and held by nonaffiliates. Exchangeable shares: issued and held by nonaffiliates Face amount or stated value of exchangeable shares per share; generally not indicative of the fair market value per share. Exchangeable shares: par value Value of issued exchangeable stock that may be calculated differently depending on whether the stock is issued at par value, no par or stated value. Exchangeable shares: no par value; unlimited shares authorized; issued and held by nonaffiliates: 0 and 1,600,110 shares (Note 4) Foreign exchange transaction (gains) losses (Note 9) The (gain) loss resulting from the sale of property, plant or equipment, or the (gain) loss resulting from the sale of a portion of the company's business, for example a segment, division, branch or other business, during the period. Net gains on disposition of assets and operations (Notes 3 and 9) Net gains on disposition of assets and operations (Notes 3 and 9) Gain resulting from the restructuring of a joint venture. Gain on restructuring Uruguay joint ventures (Note 8) Gain on restructuring Uruguay joint ventures (Note 8) Loss on early extinguishment of debt General and administrative expenses Goodwill (Note 12) Impairment of goodwill (Note 12) Impairments and other investment-related charges (Note 10) Charge for impairment of long-lived assets (Note 10) Loss from continuing operations Loss from continuing operations before income taxes Continuing operations Continuing operations Discontinued operations, net of income taxes (Note 3) Discontinued operations Discontinued operations Equity in income of affiliates Income taxes Income taxes Accounts payable and accrued liabilities The net change during the period in the amount of deposits on land positions. Deposits on land positions Net change in intercompany advances from operating activities. Intercompany advances Intercompany advances Inventories, real estate and land Decrease (increase) in working capital, net of acquisitions and divestitures: Other Prepaid expenses Receivables Less: interest capitalized Interest expense incurred Interest expense and other: Interest, net of amount capitalized NOTE 11: INVENTORIES Inventories (Note 11) Amount may include interest and dividend income as well as rental income and other investment related gains and losses or income and expense items. Interest income and other Investments in and advances to equity affiliates Land being processed for development Total liabilities Total liabilities and shareholders' interest LIABILITIES AND SHAREHOLDERS' INTEREST Total current liabilities Current liabilities: Liabilities held by special purpose entities Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities Current liabilities related to a disposal group that is held for sale and anticipated to be sold within one year or the normal operating cycle. The liability is expected to be discharged as part of the plan of sale for the asset. Current liabilities held for sale (Note 3) Noncurrent liabilities that are held for sale apart from normal operations and anticipated to be sold in less than one year. Noncurrent liabilities held for sale (Note 3) Long-term debt Current maturities of long-term debt Long-term debt Cash from financing activities Cash flows from financing activities: Cash from investing activities Cash flows from investing activities: Cash from operations Cash flows from operations: Net earnings Net earnings (loss) Notes to Financial Statements [Abstract] Notes to Financial Statements [Abstract] Operating income (loss) NOTE 1: BASIS OF PRESENTATION Other assets Other liabilities Other operating income, net The aggregate amount of other operating income and cost items that are associated with the entity's normal continuing operations. Other operating costs, net (Note 9) Charges for restructuring (Note 6) Notes payable and commercial paper The cash outflow associated with the restructuring of a joint venture. Restructuring Uruguay joint ventures, net (Note 8) Restructuring Uruguay joint ventures, net (Note 8) The net cash inflow (outflow) associated with return (contribution) of capital from (to) equity affiliates. (Investments in and advances to) or distributions from equity affiliates The net change from intercompany advances from financing activities. Intercompany advances The net change in intercompany advances from investing activities. Intercompany advances Other Repurchase of common stock The cash outflow for timberlands reforestation. Timberlands reforestation Timberlands reforestation Cash dividends Acquisition of a business and facilities - net of cash acquired Property and equipment Purchase of short-term investments The cash outflow for acquisition of timber and timberlands during the period. Acquisition of timberlands Acquisition of timberlands Pension and other postretirement benefits (Note 14) Amount represents the noncurrent liability for underfunded plans recognized in the balance sheet that is associated with the defined benefit pension plans and other postretirement defined benefit plans. Also includes other noncurrent liabilities not otherwise specified in the taxonomy. 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