Exhibit 99.2
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
STATISTICAL INFORMATION (unaudited)
CONSOLIDATED EARNINGS
(in millions)
(in millions)
Q1 | Q2 | Q3 | Year-to-date | Q4 | Year Ended | |||||||||||||||||||||||||||||||||||
March 26, | March 27, | June 25, | June 26, | Sept. 24, | Sept. 25, | Sept. 24, | Sept. 25, | Dec. 25, | Dec. 25, | |||||||||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2005 | 2005 | |||||||||||||||||||||||||||||||
Net sales and revenues: | ||||||||||||||||||||||||||||||||||||||||
Weyerhaeuser(1) | $ | 4,566 | $ | 4,577 | $ | 4,911 | $ | 5,017 | $ | 4,579 | $ | 4,836 | $ | 14,056 | $ | 14,430 | $ | 4,700 | $ | 19,130 | ||||||||||||||||||||
Real Estate and Related Assets | 690 | 655 | 746 | 648 | 749 | 596 | 2,185 | 1,899 | 1,016 | 2,915 | ||||||||||||||||||||||||||||||
Total net sales and revenues | 5,256 | 5,232 | 5,657 | 5,665 | 5,328 | 5,432 | 16,241 | 16,329 | 5,716 | 22,045 | ||||||||||||||||||||||||||||||
Costs and expenses: | ||||||||||||||||||||||||||||||||||||||||
Weyerhaeuser: | ||||||||||||||||||||||||||||||||||||||||
Costs of products sold(2) | 3,612 | 3,504 | 3,815 | 3,833 | 3,590 | 3,800 | 11,017 | 11,137 | 3,832 | 14,969 | ||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 306 | 316 | 305 | 319 | 305 | 320 | 916 | 955 | 326 | 1,281 | ||||||||||||||||||||||||||||||
Selling expenses | 109 | 115 | 125 | 116 | 123 | 116 | 357 | 347 | 106 | 453 | ||||||||||||||||||||||||||||||
General and administrative expenses | 255 | 221 | 223 | 215 | 234 | 234 | 712 | 670 | 221 | 891 | ||||||||||||||||||||||||||||||
Research and development expenses(3) | 16 | 14 | 15 | 12 | 21 | 18 | 52 | 44 | 17 | 61 | ||||||||||||||||||||||||||||||
Taxes other than payroll and income taxes | 44 | 44 | 46 | 44 | 43 | 45 | 133 | 133 | 16 | 149 | ||||||||||||||||||||||||||||||
Charges for restructuring(4) | — | 5 | 18 | 4 | 4 | 2 | 22 | 11 | 10 | 21 | ||||||||||||||||||||||||||||||
Charges for closure of facilities | 1 | 5 | 17 | 3 | 43 | 29 | 61 | 37 | 656 | 693 | ||||||||||||||||||||||||||||||
Impairment of goodwill(5) | 746 | — | 3 | — | — | — | 749 | — | — | — | ||||||||||||||||||||||||||||||
Other operating costs, net(6) (7) | 31 | 9 | (23 | ) | (40 | ) | (34 | ) | (32 | ) | (26 | ) | (63 | ) | 3 | (60 | ) | |||||||||||||||||||||||
5,120 | 4,233 | 4,544 | 4,506 | 4,329 | 4,532 | 13,993 | 13,271 | 5,187 | 18,458 | |||||||||||||||||||||||||||||||
Real Estate and Related Assets: | ||||||||||||||||||||||||||||||||||||||||
Costs and operating expenses(8) | 481 | 426 | 552 | 441 | 537 | 401 | 1,570 | 1,268 | 677 | 1,945 | ||||||||||||||||||||||||||||||
Depreciation and amortization | 3 | 3 | 4 | 4 | 10 | 4 | 17 | 11 | 5 | 16 | ||||||||||||||||||||||||||||||
Selling expenses | 37 | 33 | 43 | 36 | 44 | 36 | 124 | 105 | 46 | 151 | ||||||||||||||||||||||||||||||
General and administrative expenses | 30 | 24 | 34 | 25 | 30 | 27 | 94 | 76 | 28 | 104 | ||||||||||||||||||||||||||||||
Taxes other than payroll and income taxes | 1 | 1 | 2 | — | 2 | 1 | 5 | 2 | 1 | 3 | ||||||||||||||||||||||||||||||
Other operating costs, net | (3 | ) | — | 3 | (2 | ) | (2 | ) | (2 | ) | (2 | ) | (4 | ) | 1 | (3 | ) | |||||||||||||||||||||||
Impairment of long-lived assets | — | — | 3 | — | 14 | — | 17 | — | 33 | 33 | ||||||||||||||||||||||||||||||
549 | 487 | 641 | 504 | 635 | 467 | 1,825 | 1,458 | 791 | 2,249 | |||||||||||||||||||||||||||||||
Total costs and expenses | 5,669 | 4,720 | 5,185 | 5,010 | 4,964 | 4,999 | 15,818 | 14,729 | 5,978 | 20,707 | ||||||||||||||||||||||||||||||
Operating income | (413 | ) | 512 | 472 | 655 | 364 | 433 | 423 | 1,600 | (262 | ) | 1,338 | ||||||||||||||||||||||||||||
Interest expense and other: | ||||||||||||||||||||||||||||||||||||||||
Weyerhaeuser: | ||||||||||||||||||||||||||||||||||||||||
Interest expense incurred(9) | (152 | ) | (196 | ) | (152 | ) | (179 | ) | (149 | ) | (193 | ) | (453 | ) | (568 | ) | (171 | ) | (739 | ) | ||||||||||||||||||||
Less: interest capitalized(2) | 16 | — | 20 | 2 | 21 | 3 | 57 | 5 | 4 | 9 | ||||||||||||||||||||||||||||||
Interest income and other | 19 | 27 | 15 | 20 | 17 | 143 | 51 | 190 | 24 | 214 | ||||||||||||||||||||||||||||||
Equity in income (loss) of affiliates(10) | 3 | — | 6 | 4 | — | 2 | 9 | 6 | (12 | ) | (6 | ) | ||||||||||||||||||||||||||||
Real Estate and Related Assets: | ||||||||||||||||||||||||||||||||||||||||
Interest expense incurred | (14 | ) | (14 | ) | (14 | ) | (14 | ) | (12 | ) | (13 | ) | (40 | ) | (41 | ) | (14 | ) | (55 | ) | ||||||||||||||||||||
Less: interest capitalized | 14 | 14 | 14 | 14 | 12 | 13 | 40 | 41 | 14 | 55 | ||||||||||||||||||||||||||||||
Interest income and other | 10 | 5 | 3 | (2 | ) | 7 | 4 | 20 | 7 | 5 | 12 | |||||||||||||||||||||||||||||
Equity in income of unconsolidated entities(11) | 21 | 10 | 15 | 13 | 14 | 14 | 50 | 37 | 20 | 57 | ||||||||||||||||||||||||||||||
Earnings (loss) before income taxes | (496 | ) | 358 | 379 | 513 | 274 | 406 | 157 | 1,277 | (392 | ) | 885 | ||||||||||||||||||||||||||||
Income tax (expense) benefit(12) | (87 | ) | (125 | ) | (82 | ) | (225 | ) | (89 | ) | (119 | ) | (258 | ) | (469 | ) | 151 | (318 | ) | |||||||||||||||||||||
Earnings (loss) from continuing operations | (583 | ) | 233 | 297 | 288 | 185 | 287 | (101 | ) | 808 | (241 | ) | 567 | |||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of taxes(13) | 3 | 6 | 17 | 132 | 26 | (2 | ) | 46 | 136 | 30 | 166 | |||||||||||||||||||||||||||||
Net earnings (loss) | $ | (580 | ) | $ | 239 | $ | 314 | $ | 420 | $ | 211 | $ | 285 | $ | (55 | ) | $ | 944 | $ | (211 | ) | $ | 733 | |||||||||||||||||
Basic net earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||||
Continuing operations | $ | (2.37 | ) | $ | 0.96 | $ | 1.20 | $ | 1.18 | $ | 0.75 | $ | 1.17 | $ | (0.41 | ) | $ | 3.31 | $ | (0.98 | ) | $ | 2.32 | |||||||||||||||||
Discontinued operations | 0.01 | 0.02 | 0.07 | 0.54 | 0.10 | (0.01 | ) | 0.19 | 0.55 | 0.12 | 0.68 | |||||||||||||||||||||||||||||
Net earnings (loss) per share | $ | (2.36 | ) | $ | 0.98 | $ | 1.27 | $ | 1.72 | $ | 0.85 | $ | 1.16 | $ | (0.22 | ) | $ | 3.86 | $ | (0.86 | ) | $ | 3.00 | |||||||||||||||||
Diluted net earnings (loss) per share: | ||||||||||||||||||||||||||||||||||||||||
Continuing operations | $ | (2.37 | ) | $ | 0.96 | $ | 1.19 | $ | 1.17 | $ | 0.75 | $ | 1.17 | $ | (0.41 | ) | $ | 3.30 | $ | (0.98 | ) | $ | 2.31 | |||||||||||||||||
Discontinued operations | 0.01 | 0.02 | 0.07 | 0.54 | 0.10 | (0.01 | ) | 0.19 | 0.55 | 0.12 | 0.67 | |||||||||||||||||||||||||||||
Net earnings (loss) per share | $ | (2.36 | ) | $ | 0.98 | $ | 1.26 | $ | 1.71 | $ | 0.85 | $ | 1.16 | $ | (0.22 | ) | $ | 3.85 | $ | (0.86 | ) | $ | 2.98 | |||||||||||||||||
Dividends paid per share | $ | 0.50 | $ | 0.40 | $ | 0.50 | $ | 0.50 | $ | 0.60 | $ | 0.50 | $ | 1.60 | $ | 1.40 | $ | 0.50 | $ | 1.90 | ||||||||||||||||||||
Weighted average shares outstanding (in thousands) | ||||||||||||||||||||||||||||||||||||||||
Basic | 245,794 | 242,863 | 248,147 | 244,702 | 247,428 | 245,009 | 247,123 | 244,191 | 245,215 | 244,447 | ||||||||||||||||||||||||||||||
Diluted | 245,794 | 244,185 | 249,194 | 245,881 | 247,900 | 246,190 | 247,123 | 245,354 | 246,198 | 245,559 |
PRELIMINARY RESULTS - SUBJECT TO AUDIT
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONSOLIDATED EARNINGS
(in millions)
(in millions)
Year-to-date | Year Ended | |||||||||||||||||||||||||||||||||||||||
Q1 2006 | Q1 2005 | Q2 2006 | Q2 2005 | Q3 2006 | Q3 2005 | Q3 2006 | Q3 2005 | Q4 2005 | 2005 | |||||||||||||||||||||||||||||||
(1) Countervailing and anti-dumping duties and related costs: | $11 | $22 | $10 | $27 | $7 | $19 | $28 | $68 | $16 | $84 |
(2) | Weyerhaeuser capitalized interest on Weyerhaeuser Real Estate Company (WRECO) assets in the first, second and third quarters of 2006 in the amount of $14 million, $15 million and $17 million, respectively. Weyerhaeuser cost of products sold includes $7 million, $7 million and $8 million for the first, second and third quarters of 2006, respectively, to expense previously capitalized interest in connection with the sale of WRECO assets. See Footnote 7 for 2005 information. | |
(3) | The third quarter of 2006 includes a $9 million charge related to the acquisition of in-process research and development. | |
(4) | The second quarter of 2006 includes an $18 million charge related to the restructuring of the Containerboard, Packaging and Recycling business model. | |
(5) | The first and second quarters of 2006 include charges of $746 million and $3 million, respectively, for the impairment of goodwill associated with the fine paper business. |
Year-to-date | Year Ended | |||||||||||||||||||||||||||||||||||||||
Q1 2006 | Q1 2005 | Q2 2006 | Q2 2005 | Q3 2006 | Q3 2005 | Q3 2006 | Q3 2005 | Q4 2005 | 2005 | |||||||||||||||||||||||||||||||
(6) Net foreign exchange gains (losses), primarily from fluctuations in Canadian and New Zealand exchange rates: | $(26) | $13 | $21 | $(13) | $17 | $37 | $12 | $37 | $(21) | $16 |
(7) | The third quarter of 2006 includes $23 million of income related to a reduction in the reserves for hardboard siding claims and charges of $7 million for the impairment of fixed assets related to production curtailments. The first quarter of 2005 includes a $12 million charge related to the settlement of a linerboard antitrust lawsuit. The second quarter of 2005 includes an $18 million charge related to alder litigation and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. The third quarter of 2005 includes a $115 million gain on the sale of an investment in a joint venture. The fourth quarter of 2005 includes a $38 million charge related to the settlement of linerboard antitrust litigation and $43 million of income related to the cumulative effect of a change to begin capitalizing Weyerhaeuser interest to assets of WRECO. | |
(8) | The first quarter of 2006 includes income of $8 million related to a warranty insurance recovery. | |
(9) | The third and fourth quarters of 2005 include charges of $21 million and $15 million, respectively, related to the early extinguishment of debt. | |
(10) | The third quarter of 2006 includes a $2 million charge and the fourth quarter of 2005 includes a $15 million charge related to the impairments of investments in equity affiliates. | |
(11) | The first quarter of 2006 includes recognition of $9 million of deferred income in connection with partnership restructurings. | |
(12) | The second quarter of 2006 includes a one-time tax benefit of $48 million related to a change in Texas state income tax law, a reduction in the Canadian federal income tax rate and a deferred tax adjustment related to the Medicare Part D subsidy. The second quarter of 2005 includes a charge of $44 million related to the repatriation of $1.1 billion of eligible Canadian earnings under the provisions of the American Jobs Creation Act of 2004. The third quarter of 2005 includes a one-time tax benefit of $14 million related to a change in the Ohio state income tax law. | |
(13) | Discontinued operations includes the net operating results of the company’s coastal British Columbia operations and its North American and European composites operations. The third quarter of 2006 includes a pretax gain of $51 million and related tax expense of $20 million associated with the sale of the North American composites operations and an $8 million charge to write off additional goodwill associated with the coastal British Columbia operations. The second quarter of 2005 includes a gain of $110 million, including a tax benefit of $46 million, related to the sale of the coastal British Columbia operations. The fourth quarter of 2005 includes a pretax gain of $57 million and related tax expense of $23 million associated with the sale of the French composites operations. |
PRELIMINARY RESULTS - SUBJECT TO AUDIT
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
STATISTICAL INFORMATION (unaudited)
Net sales and revenues (in millions):
Q1 | Q2 | Q3 | Year-to-date | Q4 | Year Ended | |||||||||||||||||||||||||||||||||||
March 26, | March 27, | June 25, | June 26, | Sept. 24, | Sept. 25, | Sept. 24, | Sept. 25, | Dec. 25, | Dec. 25, | |||||||||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2005 | 2005 | |||||||||||||||||||||||||||||||
Timberlands: | ||||||||||||||||||||||||||||||||||||||||
Logs | $ | 201 | $ | 182 | $ | 198 | $ | 195 | $ | 200 | $ | 188 | $ | 599 | $ | 565 | $ | 196 | $ | 761 | ||||||||||||||||||||
Other products | 62 | 82 | 71 | 63 | 46 | 65 | 179 | 210 | 76 | 286 | ||||||||||||||||||||||||||||||
263 | 264 | 269 | 258 | 246 | 253 | 778 | 775 | 272 | 1,047 | |||||||||||||||||||||||||||||||
Wood Products: | ||||||||||||||||||||||||||||||||||||||||
Softwood lumber | 782 | 892 | 857 | 1,032 | 733 | 889 | 2,372 | 2,813 | 811 | 3,624 | ||||||||||||||||||||||||||||||
Plywood | 135 | 183 | 147 | 196 | 134 | 184 | 416 | 563 | 172 | 735 | ||||||||||||||||||||||||||||||
Veneer | 13 | 13 | 13 | 10 | 9 | 9 | 35 | 32 | 12 | 44 | ||||||||||||||||||||||||||||||
Composite panels | 121 | 120 | 140 | 132 | 71 | 122 | 332 | 374 | 123 | 497 | ||||||||||||||||||||||||||||||
OSB | 287 | 288 | 273 | 306 | 203 | 267 | 763 | 861 | 303 | 1,164 | ||||||||||||||||||||||||||||||
Hardwood lumber | 99 | 94 | 105 | 102 | 96 | 95 | 300 | 291 | 99 | 390 | ||||||||||||||||||||||||||||||
Engineered I-Joists | 169 | 150 | 202 | 202 | 162 | 186 | 533 | 538 | 165 | 703 | ||||||||||||||||||||||||||||||
Engineered Solid Section | 204 | 179 | 231 | 228 | 190 | 226 | 625 | 633 | 200 | 833 | ||||||||||||||||||||||||||||||
Logs | 7 | 27 | 5 | 24 | 5 | 6 | 17 | 57 | 5 | 62 | ||||||||||||||||||||||||||||||
Other products | 256 | 270 | 327 | 340 | 302 | 325 | 885 | 935 | 290 | 1,225 | ||||||||||||||||||||||||||||||
�� | ||||||||||||||||||||||||||||||||||||||||
2,073 | 2,216 | 2,300 | 2,572 | 1,905 | 2,309 | 6,278 | 7,097 | 2,180 | 9,277 | |||||||||||||||||||||||||||||||
Cellulose Fiber and White Papers: | ||||||||||||||||||||||||||||||||||||||||
Pulp | 394 | 376 | 402 | 355 | 404 | 381 | 1,200 | 1,112 | 370 | 1,482 | ||||||||||||||||||||||||||||||
Paper | 613 | 599 | 601 | 611 | 604 | 604 | 1,818 | 1,814 | 603 | 2,417 | ||||||||||||||||||||||||||||||
Coated groundwood | 40 | 42 | 44 | 47 | 42 | 45 | 126 | 134 | 46 | 180 | ||||||||||||||||||||||||||||||
Liquid packaging board | 46 | 47 | 62 | 52 | 59 | 50 | 167 | 149 | 54 | 203 | ||||||||||||||||||||||||||||||
Other products | 14 | 14 | 17 | 12 | 21 | 16 | 52 | 42 | 12 | 54 | ||||||||||||||||||||||||||||||
1,107 | 1,078 | 1,126 | 1,077 | 1,130 | 1,096 | 3,363 | 3,251 | 1,085 | 4,336 | |||||||||||||||||||||||||||||||
Containerboard, Packaging and Recycling: | ||||||||||||||||||||||||||||||||||||||||
Containerboard | 82 | 117 | 84 | 101 | 92 | 86 | 258 | 304 | 91 | 395 | ||||||||||||||||||||||||||||||
Packaging | 911 | 898 | 1,002 | 969 | 997 | 929 | 2,910 | 2,796 | 914 | 3,710 | ||||||||||||||||||||||||||||||
Recycling | 80 | 92 | 85 | 92 | 89 | 87 | 254 | 271 | 81 | 352 | ||||||||||||||||||||||||||||||
Bags | 20 | 22 | 20 | 21 | 23 | 20 | 63 | 63 | 20 | 83 | ||||||||||||||||||||||||||||||
Other products | 34 | 34 | 46 | 40 | 44 | 47 | 124 | 121 | 46 | 167 | ||||||||||||||||||||||||||||||
1,127 | 1,163 | 1,237 | 1,223 | 1,245 | 1,169 | 3,609 | 3,555 | 1,152 | 4,707 | |||||||||||||||||||||||||||||||
Real Estate and Related Assets | 690 | 655 | 746 | 648 | 749 | 596 | 2,185 | 1,899 | 1,016 | 2,915 | ||||||||||||||||||||||||||||||
Corporate and Other | 116 | 149 | 117 | 151 | 123 | 146 | 356 | 446 | 154 | 600 | ||||||||||||||||||||||||||||||
Less: sales of discontinued operations | (120 | ) | (293 | ) | (138 | ) | (264 | ) | (70 | ) | (137 | ) | (328 | ) | (694 | ) | (143 | ) | (837 | ) | ||||||||||||||||||||
$ | 5,256 | $ | 5,232 | $ | 5,657 | $ | 5,665 | $ | 5,328 | $ | 5,432 | $ | 16,241 | $ | 16,329 | $ | 5,716 | $ | 22,045 | |||||||||||||||||||||
Contribution (charge) to pre-tax earnings:
(in millions)
(in millions)
Q1 | Q2 | Q3 | Year-to-date | Q4 | Year Ended | |||||||||||||||||||||||||||||||||||
March 26, | March 27, | June 25, | June 26, | Sept. 24, | Sept. 25, | Sept. 24, | Sept. 25, | Dec. 25, | Dec. 25, | |||||||||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2005 | 2005 | |||||||||||||||||||||||||||||||
Timberlands(1) (2)(4) | $ | 198 | $ | 200 | $ | 224 | $ | 210 | $ | 178 | $ | 191 | $ | 600 | $ | 601 | $ | 183 | $ | 784 | ||||||||||||||||||||
Wood Products(1) (2) (5) | 117 | 131 | 131 | 204 | 11 | 124 | 259 | 459 | 26 | 485 | ||||||||||||||||||||||||||||||
Cellulose Fiber and White Papers(1) (2) (6) | (763 | ) | 19 | 23 | 16 | 115 | (2 | ) | (625 | ) | 33 | (477 | ) | (444 | ) | |||||||||||||||||||||||||
Containerboard, Packaging and Recycling(1) (2) (7) | 22 | 48 | 74 | 99 | 96 | 36 | 192 | 183 | (188 | ) | (5 | ) | ||||||||||||||||||||||||||||
Real Estate and Related Assets(2)(8) | 172 | 183 | 123 | 156 | 135 | 145 | 430 | 484 | 250 | 734 | ||||||||||||||||||||||||||||||
Corporate and Other(1) (2) (3) (9) | (102 | ) | (17 | ) | (40 | ) | 99 | (78 | ) | 101 | (220 | ) | 183 | 33 | 216 | |||||||||||||||||||||||||
$ | (356 | ) | $ | 564 | $ | 535 | $ | 784 | $ | 457 | $ | 595 | $ | 636 | $ | 1,943 | $ | (173 | ) | $ | 1,770 | |||||||||||||||||||
PRELIMINARY RESULTS - SUBJECT TO AUDIT
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
STATISTICAL INFORMATION (unaudited)
FOOTNOTES TO CONTRIBUTION (CHARGE) TO PRE-TAX EARNINGS
(in millions)
(in millions)
Year-to-date | Year Ended | |||||||||||||||||||||||||||||||||||||||
Q1 2006 | Q1 2005 | Q2 2006 | Q2 2005 | Q3 2006 | Q3 2005 | Q3 2006 | Q3 2005 | Q4 2005 | 2005 | |||||||||||||||||||||||||||||||
(1) Closure charges by segment: | ||||||||||||||||||||||||||||||||||||||||
Timberlands | $ | — | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 3 | $ | 3 | $ | 6 | ||||||||||||||||||||
Wood Products | — | 1 | 1 | 1 | 10 | 6 | 11 | 8 | 91 | 99 | ||||||||||||||||||||||||||||||
Cellulose Fiber and White Papers | (1 | ) | — | 11 | — | 4 | 22 | 14 | 22 | 427 | 449 | |||||||||||||||||||||||||||||
Containerboard, Packaging and Recycling | 2 | 4 | 5 | 2 | 3 | 1 | 10 | 7 | 130 | 137 | ||||||||||||||||||||||||||||||
Corporate and Other | — | — | — | — | 26 | — | 26 | — | 5 | 5 | ||||||||||||||||||||||||||||||
$ | 1 | $ | 8 | $ | 17 | $ | 3 | $ | 43 | $ | 29 | $ | 61 | $ | 40 | $ | 656 | $ | 696 | |||||||||||||||||||||
The above closure charges for the first quarter and full year 2005 include $3 million of costs incurred within the company’s discontinued operations. The third quarter of 2006 includes a $26 million charge in the Corporate and Other segment for the impairment of corporate assets related to the Prince Albert pulp and paper facility.
Year-to-date | Year Ended | ||||||||||||||||||||||||||||||||||||||||
Q1 2006 | Q1 2005 | Q2 2006 | Q2 2005 | Q3 2006 | Q3 2005 | Q3 2006 | Q3 2005 | Q4 2005 | 2005 | ||||||||||||||||||||||||||||||||
(2) Share-based compensation charges | |||||||||||||||||||||||||||||||||||||||||
(income) recognized by segment: | |||||||||||||||||||||||||||||||||||||||||
Timberlands | $ | 1 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | |||||||||||||||||||||
Wood Products | 2 | — | — | — | — | — | 2 | — | — | — | |||||||||||||||||||||||||||||||
Cellulose Fiber and White Papers | 1 | — | — | — | 1 | — | 2 | — | — | — | |||||||||||||||||||||||||||||||
Containerboard, Packaging and Recycling | 2 | — | (1 | ) | — | 1 | — | 2 | — | — | — | ||||||||||||||||||||||||||||||
Real Estate and Related Assets | — | — | 1 | — | — | — | 1 | — | — | — | |||||||||||||||||||||||||||||||
Corporate and Other | 15 | 2 | (4 | ) | (6 | ) | 1 | 3 | 12 | (1 | ) | 12 | 11 | ||||||||||||||||||||||||||||
$ | 21 | $ | 2 | $ | (4 | ) | $ | (6 | ) | $ | 3 | $ | 3 | $ | 20 | $ | (1 | ) | $ | 12 | $ | 11 | |||||||||||||||||||
Year-to-date | Year Ended | ||||||||||||||||||||||||||||||||||||||||
Q1 2006 | Q1 2005 | Q2 2006 | Q2 2005 | Q3 2006 | Q3 2005 | Q3 2006 | Q3 2005 | Q4 2005 | 2005 | ||||||||||||||||||||||||||||||||
(3) Net foreign | |||||||||||||||||||||||||||||||||||||||||
exchange gains (losses) included in Corporate and Other: | $(26) | $13 | $20 | $(12) | $17 | $38 | $11 | $39 | $(20) | $19 |
(4) | Additional Timberlands notes: |
(a) | Hurricane related losses were $5 million in third quarter 2005 and $6 million in fourth quarter 2005. |
(5) | Additional Wood Products notes: |
(a) | Refer to footnote 1 to Consolidated Earnings regarding countervailing duty and anti-dumping costs included in Wood Products. | ||
(b) | The third quarter of 2006 includes $23 million of income related to a reduction in the hardboard siding claims reserves. The second quarter of 2005 includes an $18 million charge related to alder litigation. The third quarter of 2005 includes $9 million of income related to the reduction of reserves for alder litigation and an insurance settlement related to product liability claims. | ||
(c) | The third quarter of 2006 includes a $51 million gain on the sale of the company’s North American composites operations. | ||
(d) | The third quarter of 2006 includes charges of $7 million for the impairment of fixed assets related to production curtailments. | ||
(e) | The second quarter of 2005 includes a $6 million gain related to a tenure reallocation agreement with the British Columbia government. |
(6) | Additional Cellulose Fiber and White Papers notes: |
(a) | The first and second quarters of 2006 include charges of $746 million and $3 million, respectively, for the impairment of goodwill associated with the fine paper business. |
(7) | Additional Containerboard, Packaging and Recycling notes: |
(a) | The second quarter of 2006 includes a charge of $18 million related to the restructuring of the Containerboard, Packaging and Recycling business model. | ||
(b) | The first and fourth quarters of 2005 include charges of $12 million and $38 million, respectively, associated with the settlement of linerboard antitrust lawsuits. | ||
(c) | The third quarter of 2005 had a charge of $1 million related to hurricane damage. |
(8) | Additional Real Estate and Related Assets notes: |
(a) | The first quarter of 2006 includes income of $8 million related to a warranty insurance recovery and income of $9 million related to recognition of deferred income in connection with partnership restructurings. |
(b) | The first, second and third quarters of 2006 includes net gains (losses) on land and lot sales of $33 million, ($1) million and $0, respectively. The first, second, third and fourth quarters of 2005 include net gains (losses) on land and lot sales of $57 million, $21 million, ($1) and $2 million, respectively. The fourth quarter of 2005 also includes a $33 million charge for the impairment of unimproved land. |
(c) | The second and third quarters of 2006 include charges for the impairment of assets of $3 million and $14 million, respectively. |
(9) | Additional Corporate and Other notes: |
(a) | The third quarter of 2006 includes a $2 million charge and the fourth quarter of 2005 includes a $15 million charge related to the impairments of investments in equity affiliates. | ||
(b) | The third quarter of 2006 includes a $9 million charge related to the acquisition of in-process research and development. | ||
(c) | The third quarter of 2006 includes an $8 million charge to write off additional goodwill associated with coastal British Columbia operations. | ||
(d) | The second quarter of 2005 includes a $64 million pretax gain on the sale of the company’s operations in coastal British Columbia and $57 million of income related to the recognition of a deferred gain from previous timberlands sales. The third quarter of 2005 includes a $115 million gain on the sale of an investment in a joint venture. The fourth quarter of 2005 includes a $57 million gain on the sale of the company’s French composites operations and $43 million of income for the cumulative effect of a change to begin capitalizing Weyerhaeuser interest to assets of Weyerhaeuser Real Estate Company. |
PRELIMINARY RESULTS - SUBJECT TO AUDIT
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION (unaudited)
Third party sales volumes:
Q1 | Q2 | Q3 | Year-to-date | Q4 | Year Ended | |||||||||||||||||||||||||||||||||||
March 26, | March 27, | June 25, | June 26, | Sept. 24, | Sept. 25, | Sept. 24, | Sept. 25, | Dec. 25, | Dec. 25, | |||||||||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2005 | 2005 | |||||||||||||||||||||||||||||||
Timberlands (thousands): | ||||||||||||||||||||||||||||||||||||||||
Logs — cunits | 935 | 864 | 808 | 863 | 850 | 886 | 2,593 | 2,613 | 939 | 3,552 | ||||||||||||||||||||||||||||||
Wood Products (millions): | ||||||||||||||||||||||||||||||||||||||||
Softwood lumber — board feet | 1,921 | 2,057 | 2,113 | 2,355 | 1,974 | 2,179 | 6,008 | 6,591 | 2,059 | 8,650 | ||||||||||||||||||||||||||||||
Plywood — square feet (3/8") | 389 | 537 | 458 | 600 | 437 | 558 | 1,284 | 1,695 | 485 | 2,180 | ||||||||||||||||||||||||||||||
Veneer — square feet (3/8") | 61 | 60 | 63 | 59 | 48 | 51 | 172 | 170 | 61 | 231 | ||||||||||||||||||||||||||||||
Composite panels — square feet (3/4") | 302 | 299 | 324 | 317 | 139 | 308 | 765 | 924 | 305 | 1,229 | ||||||||||||||||||||||||||||||
Oriented strand board — square feet (3/8") | 1,000 | 908 | 1,069 | 1,041 | 989 | 1,008 | 3,058 | 2,957 | 991 | 3,948 | ||||||||||||||||||||||||||||||
Hardwood lumber — board feet | 103 | 102 | 110 | 114 | 100 | 105 | 313 | 321 | 106 | 427 | ||||||||||||||||||||||||||||||
Engineered I-Joists — lineal feet | 114 | 108 | 137 | 138 | 110 | 125 | 361 | 371 | 113 | 484 | ||||||||||||||||||||||||||||||
Engineered Solid Section — cubic feet | 9 | 9 | 11 | 10 | 9 | 10 | 29 | 29 | 9 | 38 | ||||||||||||||||||||||||||||||
Logs — cunits (in thousands) | 55 | 187 | 46 | 177 | 26 | 41 | 127 | 405 | 46 | 451 | ||||||||||||||||||||||||||||||
Cellulose Fiber and White Papers (thousands): | ||||||||||||||||||||||||||||||||||||||||
Pulp — air-dry metric tons | 651 | 629 | 647 | 587 | 625 | 653 | 1,923 | 1,869 | 633 | 2,502 | ||||||||||||||||||||||||||||||
Paper — tons | 753 | 736 | 662 | 742 | 641 | 757 | 2,056 | 2,235 | 761 | 2,996 | ||||||||||||||||||||||||||||||
Coated groundwood — tons | 52 | 58 | 59 | 62 | 59 | 56 | 170 | 176 | 56 | 232 | ||||||||||||||||||||||||||||||
Liquid packaging board — tons | 56 | 60 | 71 | 65 | 72 | 64 | 199 | 189 | 69 | 258 | ||||||||||||||||||||||||||||||
Paper converting — tons | 511 | 475 | 474 | 494 | 462 | 494 | 1,447 | 1,463 | 501 | 1,964 | ||||||||||||||||||||||||||||||
Containerboard, Packaging and Recycling (thousands): | ||||||||||||||||||||||||||||||||||||||||
Containerboard — tons | 211 | 295 | 189 | 259 | 202 | 238 | 602 | 792 | 254 | 1,046 | ||||||||||||||||||||||||||||||
Packaging — MSF | 18,342 | 17,354 | 19,168 | 18,600 | 18,425 | 18,560 | 55,935 | 54,514 | 19,117 | 73,631 | ||||||||||||||||||||||||||||||
Recycling — tons | 733 | 692 | 719 | 695 | 678 | 665 | 2,130 | 2,052 | 676 | 2,728 | ||||||||||||||||||||||||||||||
Kraft bags and sacks — tons | 20 | 23 | 20 | 22 | 22 | 22 | 62 | 67 | 22 | 89 | ||||||||||||||||||||||||||||||
Real Estate and Related Assets: | ||||||||||||||||||||||||||||||||||||||||
Single-family homes sold | 1,472 | 1,378 | 1,325 | 1,525 | 906 | 1,608 | 3,703 | 4,511 | 1,174 | 5,685 | ||||||||||||||||||||||||||||||
Single-family homes closed | 1,161 | 1,189 | 1,483 | 1,279 | 1,439 | 1,257 | 4,083 | 3,725 | 1,922 | 5,647 | ||||||||||||||||||||||||||||||
Single-family homes sold but not closed at end of period | 3,105 | 2,561 | 2,947 | 2,807 | 2,414 | 3,158 | 2,414 | 3,158 | 2,410 | 2,410 |
Total production volumes:
Q1 | Q2 | Q3 | Year-to-date | Q4 | Year Ended | |||||||||||||||||||||||||||||||||||
March 26, | March 27, | June 25, | June 26, | Sept. 24, | Sept. 25, | Sept. 24, | Sept. 25, | Dec. 25, | Dec. 25, | |||||||||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2005 | 2005 | |||||||||||||||||||||||||||||||
Timberlands (thousands): | ||||||||||||||||||||||||||||||||||||||||
Fee Depletion — cunits | 2,132 | 2,248 | 2,083 | 2,231 | 2,040 | 2,098 | 6,255 | 6,577 | 2,153 | 8,730 | ||||||||||||||||||||||||||||||
Wood Products (millions): | ||||||||||||||||||||||||||||||||||||||||
Softwood lumber — board feet | 1,663 | 1,821 | 1,650 | 1,869 | 1,559 | 1,651 | 4,872 | 5,341 | 1,645 | 6,986 | ||||||||||||||||||||||||||||||
Plywood — square feet (3/8") | 241 | 303 | 245 | 302 | 237 | 296 | 723 | 901 | 254 | 1,155 | ||||||||||||||||||||||||||||||
Veneer — square feet (3/8")(1) | 455 | 517 | 455 | 529 | 494 | 486 | 1,404 | 1,532 | 447 | 1,979 | ||||||||||||||||||||||||||||||
Composite panels — square feet (3/4") | 278 | 267 | 288 | 282 | 100 | 268 | 666 | 817 | 263 | 1,080 | ||||||||||||||||||||||||||||||
Oriented strand board — square feet (3/8") | 1,073 | 1,007 | 1,062 | 1,019 | 1,009 | 1,017 | 3,144 | 3,043 | 1,035 | 4,078 | ||||||||||||||||||||||||||||||
Hardwood lumber — board feet | 82 | 92 | 83 | 96 | 82 | 91 | 247 | 279 | 85 | 364 | ||||||||||||||||||||||||||||||
Engineered I-Joists — LF | 121 | 133 | 136 | 132 | 130 | 108 | 387 | 373 | 110 | 483 | ||||||||||||||||||||||||||||||
Engineered Solid Section — CF | 11 | 11 | 12 | 10 | 10 | 10 | 33 | 31 | 10 | 41 | ||||||||||||||||||||||||||||||
Cellulose Fiber and White Papers (thousands): | ||||||||||||||||||||||||||||||||||||||||
Pulp — air-dry metric tons | 676 | 621 | 588 | 614 | 660 | 663 | 1,924 | 1,898 | 604 | 2,502 | ||||||||||||||||||||||||||||||
Paper — tons (2) | 724 | 763 | 672 | 752 | 675 | 765 | 2,071 | 2,280 | 780 | 3,060 | ||||||||||||||||||||||||||||||
Coated groundwood — tons | 56 | 55 | 56 | 59 | 59 | 60 | 171 | 174 | 60 | 234 | ||||||||||||||||||||||||||||||
Liquid packaging board — tons | 61 | 60 | 75 | 64 | 73 | 69 | 209 | 193 | 71 | 264 | ||||||||||||||||||||||||||||||
Paper converting — tons | 498 | 475 | 461 | 487 | 485 | 483 | 1,444 | 1,445 | 505 | 1,950 | ||||||||||||||||||||||||||||||
Containerboard, Packaging and Recycling (thousands): | ||||||||||||||||||||||||||||||||||||||||
Containerboard — tons(3) | 1,575 | 1,503 | 1,533 | 1,581 | 1,544 | 1,597 | 4,652 | 4,681 | 1,587 | 6,268 | ||||||||||||||||||||||||||||||
Packaging — MSF | 19,550 | 18,628 | 20,290 | 19,915 | 19,341 | 19,416 | 59,181 | 57,959 | 20,130 | 78,089 | ||||||||||||||||||||||||||||||
Recycling — tons(4) | 1,716 | 1,624 | 1,684 | 1,673 | 1,641 | 1,716 | 5,041 | 5,013 | 1,730 | 6,743 | ||||||||||||||||||||||||||||||
Kraft bags and sacks — tons | 19 | 23 | 20 | 22 | 18 | 21 | 57 | 66 | 22 | 88 |
(1) | Veneer production represents lathe production and includes volumes that are further processed into plywood and engineered lumber products by company mills. | |
(2) | Paper production includes unprocessed rolls and converted paper volumes. | |
(3) | Containerboard production represents machine production and includes volumes that are further processed into packaging and kraft bags and sacks by company facilities. | |
(4) | Recycling production includes volumes processed in Weyerhaeuser recycling facilities that are consumed by company facilities and brokered volumes. |
PRELIMINARY RESULTS - SUBJECT TO AUDIT
WEYERHAEUSER COMPANY
STATISTICAL INFORMATION
STATISTICAL INFORMATION
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
(in millions)
(in millions)
March 26, | June 25, | Sept. 24, | Dec. 25, | |||||||||||||
2006 | 2006 | 2006 | 2005 | |||||||||||||
Assets | ||||||||||||||||
Weyerhaeuser | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and short-term investments | $ | 105 | $ | 113 | $ | 114 | $ | 818 | ||||||||
Receivables, less allowances | 1,807 | 1,920 | 1,816 | 1,707 | ||||||||||||
Inventories | 2,036 | 1,899 | 1,983 | 1,885 | ||||||||||||
Prepaid expenses | 433 | 427 | 440 | 414 | ||||||||||||
Assets of discontinued operations | 222 | 219 | 88 | 223 | ||||||||||||
Total current assets | 4,603 | 4,578 | 4,441 | 5,047 | ||||||||||||
Property and equipment | 10,124 | 10,107 | 9,926 | 10,345 | ||||||||||||
Construction in progress | 640 | 607 | 640 | 527 | ||||||||||||
Timber and timberlands at cost, less fee stumpage charged to disposals | 3,702 | 3,696 | 3,665 | 3,705 | ||||||||||||
Investments in and advances to equity affiliates | 475 | 479 | 490 | 486 | ||||||||||||
Goodwill | 2,235 | 2,243 | 2,254 | 2,982 | ||||||||||||
Deferred pension and other assets | 1,284 | 1,303 | 1,265 | 1,314 | ||||||||||||
Restricted assets held by special purpose entities | 914 | 916 | 914 | 916 | ||||||||||||
23,977 | 23,929 | 23,595 | 25,322 | |||||||||||||
Real Estate and Related Assets | ||||||||||||||||
Cash and short-term investments | 39 | 36 | 13 | 286 | ||||||||||||
Receivables, less allowances | 143 | 141 | 145 | 42 | ||||||||||||
Real estate in process of development and for sale | 1,341 | 1,590 | 1,636 | 1,055 | ||||||||||||
Land being processed for development | 1,298 | 1,282 | 1,355 | 1,037 | ||||||||||||
Investments in unconsolidated entities, less reserves | 60 | 66 | 74 | 61 | ||||||||||||
Other assets | 353 | 420 | 422 | 296 | ||||||||||||
Assets not owned, consolidated under FIN 46R | 170 | 154 | 132 | 130 | ||||||||||||
3,404 | 3,689 | 3,777 | 2,907 | |||||||||||||
Total assets | $ | 27,381 | $ | 27,618 | $ | 27,372 | $ | 28,229 | ||||||||
Liabilities and Shareholders’ Interest | ||||||||||||||||
Weyerhaeuser | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Notes payable and commercial paper | $ | 1 | $ | 2 | $ | 222 | $ | 3 | ||||||||
Current maturities of long-term debt | 693 | 551 | 492 | 381 | ||||||||||||
Accounts payable | 1,181 | 1,210 | 1,142 | 1,227 | ||||||||||||
Accrued liabilities | 1,252 | 1,326 | 1,098 | 1,622 | ||||||||||||
Liabilities of business held for sale | 22 | 19 | 18 | 25 | ||||||||||||
Total current liabilities | 3,149 | 3,108 | 2,972 | 3,258 | ||||||||||||
Long-term debt | 6,938 | 7,075 | 7,082 | 7,404 | ||||||||||||
Deferred income taxes | 3,998 | 3,909 | 3,848 | 4,032 | ||||||||||||
Deferred pension, other postretirement benefits and other liabilities | 1,651 | 1,674 | 1,628 | 1,591 | ||||||||||||
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities | 763 | 765 | 762 | 764 | ||||||||||||
16,499 | 16,531 | 16,292 | 17,049 | |||||||||||||
Real Estate and Related Assets | ||||||||||||||||
Notes payable and commercial paper | 63 | 125 | 385 | 3 | ||||||||||||
Long-term debt | 878 | 628 | 601 | 851 | ||||||||||||
Other liabilities | 568 | 707 | 766 | 417 | ||||||||||||
Liabilities not owned, consolidated under FIN 46R | 144 | 127 | 107 | 109 | ||||||||||||
1,653 | 1,587 | 1,859 | 1,380 | |||||||||||||
Total liabilities | 18,152 | 18,118 | 18,151 | 18,429 | ||||||||||||
Shareholders’ interest | 9,229 | 9,500 | 9,221 | 9,800 | ||||||||||||
Total liabilities and shareholders’ interest | $ | 27,381 | $ | 27,618 | $ | 27,372 | $ | 28,229 | ||||||||
STATEMENT OF CASH FLOWS
SELECTED INFORMATION (unaudited)
SELECTED INFORMATION (unaudited)
(in millions)
(Weyerhaeuser only, excludes Real Estate & Related Assets)
Q1 | Q2 | Q3 | Year-to-date | Q4 | Year Ended | |||||||||||||||||||||||||||||||||||
March 26, | March 27, | June 25, | June 26, | Sept. 24, | Sept. 25, | Sept. 24, | Sept. 25, | Dec. 25, | Dec. 25, | |||||||||||||||||||||||||||||||
2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2006 | 2005 | 2005 | 2005 | |||||||||||||||||||||||||||||||
Net cash from operations | $ | (209 | ) | $ | (203 | ) | $ | 565 | $ | 723 | $ | 95 | $ | 452 | $ | 451 | $ | 972 | $ | 648 | $ | 1,620 | ||||||||||||||||||
Cash paid for property and equipment | $ | (182 | ) | $ | (117 | ) | $ | (184 | ) | $ | (196 | ) | $ | (173 | ) | $ | (220 | ) | $ | (539 | ) | $ | (533 | ) | $ | (310 | ) | $ | (843 | ) | ||||||||||
Cash paid for timberlands reforestation | $ | (12 | ) | $ | (12 | ) | $ | (9 | ) | $ | (6 | ) | $ | (6 | ) | $ | (6 | ) | $ | (27 | ) | $ | (24 | ) | $ | (8 | ) | $ | (32 | ) | ||||||||||
Cash received from issuances of debt | $ | — | $ | — | $ | — | $ | 1 | $ | 3 | $ | — | $ | 3 | $ | 1 | $ | — | $ | 1 | ||||||||||||||||||||
Revolving credit facilities, notes and commercial paper borrowings, net | $ | (68 | ) | $ | 19 | $ | 19 | $ | 23 | $ | 195 | $ | (40 | ) | $ | 146 | $ | 2 | $ | 170 | $ | 172 | ||||||||||||||||||
Payments on debt | $ | (158 | ) | $ | (404 | ) | $ | (10 | ) | $ | (206 | ) | $ | (58 | ) | $ | (986 | ) | $ | (226 | ) | $ | (1,596 | ) | $ | (603 | ) | $ | (2,178 | ) | ||||||||||
Proceeds from the sale of operations | $ | — | $ | — | $ | — | $ | 1,107 | $ | 187 | $ | — | $ | 187 | $ | 1,107 | $ | 102 | $ | 1,209 | ||||||||||||||||||||
Repurchases of common stock | $ | — | $ | — | $ | — | $ | — | $ | (332 | ) | $ | — | $ | (332 | ) | $ | — | $ | (11 | ) | $ | (11 | ) |
PRELIMINARY RESULTS - SUBJECT TO AUDIT