Exhibits to press release

EX-99.2 3 dex992.htm EXHIBITS TO PRESS RELEASE Exhibits to press release

Exhibit 99.2

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION (unaudited)

CONSOLIDATED EARNINGS

(in millions, except per-share figures)


	Q1						Q4
	March 31, 2010			March 31, 2009			Dec. 31, 2009
Net sales and revenues:
Forest Products	$	1,268		$	1,103		$	1,118
Real Estate		151			172			337

Total net sales and revenues		1,419			1,275			1,455


Costs and expenses:
Forest Products:
Costs of products sold		1,008			978			936
Alternative fuel mixture credits		—			—			(115	)
Depreciation, depletion and amortization		116			122			121
Selling expenses		34			43			38
General and administrative expenses		82			96			67
Research and development expenses		8			13			13
Charges for restructuring and closures		—			82			25
Impairment of goodwill and other assets		1			18			108
Other operating costs (income), net		(71	)		6			(14	)

		1,178			1,358			1,179

Real Estate:
Costs and operating expenses		121			151			280
Depreciation and amortization		3			4			6
Selling expenses		15			22			22
General and administrative expenses		16			28			19
Other operating costs, net		1			—			10
Impairment of long-lived assets and other related charges		1			42			117

		157			247			454

Total costs and expenses		1,335			1,605			1,633


Operating income (loss)		84			(330	)		(178	)

Interest expense and other:

Forest Products:
Interest expense incurred		(106	)		(108	)		(114	)
Less: interest capitalized		1			2			1
Loss on early extinguishment of debt		—			—			(28	)
Interest income and other		9			14			15
Equity in income (loss) of equity affiliates		(6	)		3			(4	)

Real Estate:
Interest expense incurred		(6	)		(7	)		(8	)
Less: interest capitalized		5			7			6
Interest income and other		3			1			—
Equity in income of equity affiliates		36			2			3
Impairments of investments and other related charges		—			(26	)		25

Earnings (loss) before income taxes		20			(442	)		(282	)
Income tax benefit (provision)⁽¹⁾		(38	)		176			101

Net loss		(18	)		(266	)		(181	)
Less: (earnings) loss attributable to noncontrolling interests		(2	)		2			6

Net loss attributable to Weyerhaeuser common shareholders	$	(20	)	$	(264	)	$	(175	)


Basic and diluted net loss per share attributable to Weyerhaeuser common shareholders	$	(0.10	)	$	(1.25	)	$	(0.83	)

Dividends paid per share	$	0.05		$	0.25		$	0.05


Weighted average shares outstanding (in thousands):
Basic		211,440			211,298			211,358
Diluted		211,440			211,298			211,358

Common shares outstanding at end of period (in thousands)		211,557			211,355			211,359

⁽¹⁾	First quarter 2010 includes $31 million in tax charges related to the elimination of the ability to claim a tax deduction for prescription drug benefits provided to retirees and reimbursed under the Medicare Part D subsidy beginning in 2013 and state tax rate changes.

PRELIMINARY RESULTS - SUBJECT TO AUDIT

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION (unaudited)

NET SALES AND REVENUES

(in millions)


	Q1				Q4
	March 31, 2010		March 31, 2009		Dec. 31, 2009
Timberlands:
Logs:
West	$	82	$	82	$	76
South		27		33		29
Canada		9		2		6

Total logs		118		117		111
Pay as cut timber sales		8		7		7
Timberlands exchanges and non-strategic dispositions ⁽¹⁾		35		4		7
Higher and better use land sales ⁽¹⁾		5		1		1
Minerals, oil and gas		15		14		13
Products from international operations ⁽²⁾		15		7		14
Other products		6		7		3

		202		157		156

Wood Products:
Structural lumber		241		212		202
Engineered solid section		66		55		54
Engineered I-Joists		48		33		39
Oriented strand board		66		55		58
Softwood plywood		16		14		13
Hardwood lumber		54		51		45
Other products produced		35		43		27
Other products purchased for resale		78		79		72

		604		542		510

Cellulose Fibers:
Pulp		321		281		315
Liquid packaging board		71		66		74
Other products		18		17		19

		410		364		408

Real Estate:
Single family housing		143		162		305
Land		7		9		31
Other		1		1		1

		151		172		337

Corporate and Other		52		40		44

	$	1,419	$	1,275	$	1,455

⁽¹⁾	Higher and better use timberlands and non-strategic dispositions are sold through Forest Products subsidiaries.

⁽²⁾	Includes logs, plywood and hardwood lumber harvested or produced by our international operations, primarily in South America.

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION (unaudited)

NET CONTRIBUTION TO PRE-TAX EARNINGS

(in millions)


	Q1						Q4
	March 31, 2010			March 31, 2009			Dec. 31, 2009
Timberlands	$	81		$	40		$	13
Wood Products		(19	)		(266	)		(208	)
Cellulose Fibers		19			31			147
Real Estate		31			(96	)		(89	)
Corporate and Other		12			(43	)		4

	$	124		$	(334	)	$	(133	)

PRELIMINARY RESULTS - SUBJECT TO AUDIT

WEYERHAEUSER COMPANY

FOOTNOTES TO NET CONTRIBUTION TO PRE-TAX EARNINGS (unaudited)

(in millions)


	Q1 2010			Q1 2009			Q4 2009
Timberlands includes:
Asset impairments- attributable to Weyerhaeuser shareholders	$	—		$	—		$	(15	)
Asset impairments- attributable to noncontrolling interests		—			—			(5	)

	Q1 2010			Q1 2009			Q4 2009
Wood Products includes:
Charges for restructuring and closures	$	—		$	(63	)	$	(1	)
Goodwill impairments		—			(3	)		—
Other asset impairments		—			(5	)		(84	)
Reserve for litigation		—			(19	)		—
Gain on sale of operations		4			—
Gain on sale of property		40			—			—

	Q1 2010			Q1 2009			Q4 2009
Cellulose Fibers includes:
Charges for restructuring and closures	$	—		$	(1	)	$	—
Other asset impairments		—			—			(2	)
Alternative fuel mixture credits		—			—			115

	Q1 2010			Q1 2009			Q4 2009
Real Estate includes:
Charges for restructuring and closures	$	—		$	(4	)	$	(8	)
Impairment of assets and other related charges - attributable to Weyerhaeuser shareholders		—			(66	)		(92	)
Impairment of assets and other related charges - attributable to noncontrolling interests		—			(2	)		—
Sale of partnership interests		33			—			—
Net gain (loss) on land and lot sales		3			6			(10	)

	Q1 2010			Q1 2009			Q4 2009
Corporate and Other includes:
Charges for restructuring and closures	$	—		$	(18	)	$	(24	)
Asset impairments		—			(10	)		(2	)
Cost of sales adjustment on previously impaired Real Estate assets		—			—			24
Reduction in retiree life insurance benefits		—			—			17
Share-based compensation		(2	)		(3	)		(4	)
Net foreign exchange gains (losses)		10			(5	)		6
Pension and postretirement credits ⁽¹⁾		16			24			29
Lease accounting adjustments		—			—			(12	)

⁽¹⁾	Excludes pension and postretirement included in charges for restructuring and closures.

PRELIMINARY RESULTS - SUBJECT TO AUDIT

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION (unaudited)

THIRD PARTY SALES VOLUMES


	Q1		Q4
	March 31, 2010	March 31, 2009	Dec. 31, 2009
Timberlands (thousands):
Logs - cubic meters:
West	975	1,090	950
South	634	769	724
Canada	259	64	198
International	78	77	71

Wood Products (millions):
Structural lumber - board feet	761	881	759
Engineered solid section - cubic feet	4	3	3
Engineered I-Joists - lineal feet	44	26	34
Oriented strand board - square feet (3/8'')	334	347	348
Softwood plywood - square feet (3/8'')	60	51	51
Hardwood lumber - board feet	67	58	59

Cellulose Fibers (thousands):
Pulp - air-dry metric tons	422	409	443
Liquid packaging board - tons	67	64	73

Real Estate:
Single-family homes sold	620	455	431
Single-family homes closed	393	429	778
Single-family homes sold but not closed at end of period (backlog)	877	584	650

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION (unaudited)

TOTAL PRODUCTION VOLUMES


	Q1		Q4
	March 31, 2010	March 31, 2009	Dec. 31, 2009
Timberlands (thousands):
Fee depletion - cubic meters:
West	1,431	1,678	1,168
South	2,140	2,380	1,863
International	92	107	133

Wood Products (millions):
Structural lumber - board feet	801	861	668
Engineered solid section - cubic feet	4	2	3
Engineered I-Joists - lineal feet	41	20	29
Oriented strand board - square feet (3/8'')	378	335	354
Softwood plywood - square feet (3/8'')	48	28	37
Hardwood lumber - board feet	59	55	44

Cellulose Fibers (thousands):
Pulp - air-dry metric tons	437	415	417
Liquid packaging board - tons	69	65	69

PRELIMINARY RESULTS - SUBJECT TO AUDIT

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)

(in millions)


	March 31, 2010		Dec. 31, 2009
Assets

Forest Products
Current assets:
Cash and cash equivalents	$	2,143	$	1,862
Short-term investments		1		49
Receivables, less allowances		462		370
Receivables for taxes		34		602
Receivable from pension trust		96		146
Inventories		515		447
Prepaid expenses		93		82
Deferred tax assets		136		109

Total current assets		3,480		3,667

Property and equipment, net		3,539		3,611
Construction in progress		69		52
Timber and timberlands at cost, less depletion charged to disposals		4,016		4,010
Investments in and advances to equity affiliates		192		197
Goodwill		40		40
Deferred pension and other assets		904		756
Restricted assets held by special purpose entities		914		915

		13,154		13,248

Real Estate
Cash and cash equivalents		17		7
Receivables, less allowances		34		32
Inventory		1,553		1,515
Investments in and advances to equity affiliates		18		17
Deferred tax assets		271		299
Other assets		122		126
Consolidated assets not owned		6		6

		2,021		2,002

Total assets	$	15,175	$	15,250


Liabilities

Forest Products
Current liabilities:
Notes payable and commercial paper	$	1	$	4
Current maturities of long-term debt		3		3
Accounts payable		329		317
Accrued liabilities		603		631

Total current liabilities		936		955

Long-term debt		5,281		5,281
Deferred income taxes		1,578		1,538
Deferred pension, other postretirement benefits and other liabilities		1,942		2,000
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities		767		768

		10,504		10,542

Real Estate
Long-term debt		390		402
Other liabilities		224		252

		614		654

Total liabilities		11,118		11,196


Equity

Weyerhaeuser shareholders’ interest		4,046		4,044
Noncontrolling interest		11		10

Total equity		4,057		4,054

Total liabilities and equity	$	15,175	$	15,250

PRELIMINARY RESULTS - SUBJECT TO AUDIT

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION (unaudited)

STATEMENT OF CASH FLOWS

SELECTED INFORMATION (unaudited)

(in millions)


	Q1						Q4
	March 31, 2010			March 31, 2009			Dec. 31, 2009
Net cash from operations	$	190		$	(436	)	$	74
Cash paid for property and equipment ⁽¹⁾		(45	)		(53	)		(56	)
Cash paid for timberlands reforestation ⁽¹⁾		(13	)		(15	)		(7	)
Acquisition of timberlands		(9	)		(7	)		10
Cash received from issuances of debt		—			—			491
Payments on debt		(17	)		(1	)		(432	)
Proceeds from the sale of assets and operations		115			8			14
Cash paid for dividends		(11	)		(53	)		(11	)
Repayments from (loan to) pension trust		50			(85	)		139

⁽¹⁾	Capital spending is for Forest Products only and excludes Real Estate.


Forest Products Working Capital by Business Segment
	March 31, 2010		March 31, 2009		Dec. 31, 2009
Timberlands	$	24	$	47	$	9
Wood Products		360		354		226
Cellulose Fibers		244		292		234
Corporate and Other⁽¹⁾		1,916		1,484		2,243

	$	2,544	$	2,177	$	2,712

⁽¹⁾	Corporate and Other segment holds payroll and other liabilities related to the segments and income taxes receivable related to Real Estate.


Forest Products Capital Expenditures by Business Segment
	Q1				Q4
	March 31, 2010		March 31, 2009		Dec. 31, 2009
Timberlands	$	20	$	28	$	16
Wood Products		2		25		24
Cellulose Fibers		39		8		23
Corporate and Other		1		7		—

	$	62	$	68	$	63

PRELIMINARY RESULTS - SUBJECT TO AUDIT

WEYERHAEUSER COMPANY

STATISTICAL INFORMATION (unaudited)

STATEMENT OF OPERATIONS BY BUSINESS SEGMENT

(Dollar amounts in millions)

APPENDIX



	Q1 2010
	Timberlands			Wood Products			Cellulose Fibers			Corporate and Other			Eliminations			Total Forest Products			Real Estate			Total
Trade sales and revenues (unaffiliated customers)	$	202		$	604		$	410		$	52		$	—		$	1,268		$	151		$	1,419
Intersegment sales		171			16			—			4			(191	)		—			—			—

Net sales and revenues		373			620			410			56			(191	)		1,268			151			1,419

Costs and expenses:
Costs of products sold		254			572			331			42			(191	)		1,008			121			1,129
Depreciation, depletion and amortization		23			45			36			12			—			116			3			119
Selling expenses		2			28			3			1			—			34			15			49
General and administrative expenses		18			39			17			8			—			82			16			98
Research and development expenses		4			1			2			1			—			8			—			8
Charges for restructuring and closures		1			—			—			(1	)		—			—			—			—
Impairment of goodwill and other assets		—			1			—			—			—			1			1			2
Other operating costs (income), net		(10	)		(46	)		(2	)		(13	)		—			(71	)		1			(70	)

Total costs and expenses		292			640			387			50			(191	)		1,178			157			1,335

Operating income (loss)		81			(20	)		23			6			—			90			(6	)		84
Interest income and other		—			1			—			8			—			9			3			12
Equity in income (loss) of equity affiliates		—			—			(4	)		(2	)		—			(6	)		36			30
Income attributable to noncontrolling interests		—			—			—			—			—			—			(2	)		(2	)

Net contribution to earnings	$	81		$	(19	)	$	19		$	12		$	—		$	93		$	31			124

Interest expense, net of capitalized interest																							(106	)

Earnings before income taxes																							18
Income tax provision																							(38	)

Net loss attributable to Weyerhaeuser common shareholders																						$	(20	)


	Q1 2009
	Timberlands			Wood Products			Cellulose Fibers			Corporate and Other			Eliminations			Total Forest Products			Real Estate			Total
Trade sales and revenues (unaffiliated customers)	$	157		$	542		$	364		$	40		$	—		$	1,103		$	172		$	1,275
Intersegment sales		171			18			—			3			(192	)		—			—			—

Net sales and revenues		328			560			364			43			(192	)		1,103			172			1,275

Costs and expenses:
Costs of products sold		266			595			282			27			(192	)		978			151			1,129
Depreciation, depletion and amortization		23			50			35			14			—			122			4			126
Selling expenses		2			36			4			1			—			43			22			65
General and administrative expenses		18			53			16			9			—			96			28			124
Research and development expenses		2			3			2			6			—			13			—			13
Charges for restructuring and closures		—			62			1			19			—			82			—			82
Impairment of goodwill and other assets		—			9			—			9			—			18			—			18
Real Estate impairments and other related charges		—			—			—			—			—			—			42			42
Other operating costs (income), net		(22	)		18			(3	)		13			—			6			—			6

Total costs and expenses		289			826			337			98			(192	)		1,358			247			1,605

Operating income (loss)		39			(266	)		27			(55	)		—			(255	)		(75	)		(330	)
Interest income and other		1			—			—			13			—			14			1			15
Equity in income (loss) of equity affiliates		—			—			4			(1	)		—			3			2			5
Investment impairments and other related charges		—			—			—			—			—			—			(26	)		(26	)
Loss attributable to noncontrolling interests		—			—			—			—			—			—			2			2

Net contribution to earnings	$	40		$	(266	)	$	31		$	(43	)	$	—		$	(238	)	$	(96	)		(334	)

Interest expense, net of capitalized interest																							(106	)

Loss before income taxes																							(440	)
Income tax benefit																							176

Net loss attributable to Weyerhaeuser common shareholders																						$	(264	)


	Q4 2009
	Timberlands			Wood Products			Cellulose Fibers			Corporate and Other			Eliminations			Total Forest Products			Real Estate			Total
Trade sales and revenues (unaffiliated customers)	$	156		$	510		$	408		$	44		$	—		$	1,118		$	337		$	1,455
Intersegment sales		129			15			—			4			(148	)		—			—			—

Net sales and revenues		285			525			408			48			(148	)		1,118			337			1,455

Costs and expenses:
Costs of products sold		229			524			322			9			(148	)		936			280			1,216
Alternative fuel mixture credits		—			—			(115	)		—			—			(115	)		—			(115	)
Depreciation, depletion and amortization		21			48			36			16			—			121			6			127
Selling expenses		2			32			5			(1	)		—			38			22			60
General and administrative expenses		13			42			13			(1	)		—			67			19			86
Research and development expenses		3			2			2			6			—			13			—			13
Charges for restructuring and closures		—			1			—			24			—			25			—			25
Impairment of goodwill and other assets		20			82			2			4			—			108			—			108
Real Estate impairments and other related charges		—			—			—			—			—			—			117			117
Other operating costs (income), net		(9	)		3			(6	)		(2	)		—			(14	)		10			(4	)

Total costs and expenses		279			734			259			55			(148	)		1,179			454			1,633

Operating income (loss)		6			(209	)		149			(7	)		—			(61	)		(117	)		(178	)
Interest income and other		1			1			—			13			—			15			—			15
Equity in income (loss) of equity affiliates		—			—			(2	)		(2	)		—			(4	)		3			(1	)
Investment impairments and other related charges		—			—			—			—			—			—			25			25
Loss attributable to noncontrolling interests		6			—			—			—			—			6			—			6

Net contribution to earnings	$	13		$	(208	)	$	147		$	4		$	—		$	(44	)	$	(89	)		(133	)

Interest expense, net of capitalized interest																							(143	)

Loss before income taxes																							(276	)
Income tax benefit																							101

Net loss attributable to Weyerhaeuser common shareholders																						$	(175	)

PRELIMINARY RESULTS - SUBJECT TO AUDIT