EXHIBIT 12
Weyerhaeuser Company and Subsidiaries
Computation of Ratios of Earnings (Loss) to Fixed Charges
(Dollar amounts in thousands)
Thirteen weeks ended | ||||||||
March 26, 2006 | March 27, 2005 | |||||||
Available earnings (loss): | ||||||||
Earnings (loss) before interest expense, amortization of debt expense and income taxes | $ | (336,692 | ) | $ | 579,540 | |||
Add: interest portion of rental expense | 14,975 | 14,749 | ||||||
Deduct: undistributed earnings (loss) of equity affiliates | (16,499 | ) | (5,588 | ) | ||||
Available earnings (loss) | $ | (338,216 | ) | $ | 588,701 | |||
Fixed charges: | ||||||||
Interest expense incurred: | ||||||||
Weyerhaeuser Company and subsidiaries excluding Weyerhaeuser Real Estate Company and other related subsidiaries | 149,598 | 192,258 | ||||||
Weyerhaeuser Real Estate Company and other related subsidiaries | 14,099 | 13,634 | ||||||
Subtotal | 163,697 | 205,892 | ||||||
Less: intercompany interest | 80 | 249 | ||||||
Total interest expense incurred | 163,777 | 206,141 | ||||||
Amortization of debt expense | 2,644 | 3,322 | ||||||
Interest portion of rental expense | 14,975 | 14,749 | ||||||
Total fixed charges | $ | 181,396 | $ | 224,212 | ||||
Ratio of earnings (loss) to fixed charges | — | 2.63 | ||||||
Coverage deficiency(1) | $ | (519,612 | ) | — | ||||
(1) | The coverage deficiency of Weyerhaeuser Company and subsidiaries for the thirteen weeks ended March 26, 2006 includes a charge of $746 million arising from the impairment of goodwill associated with the Cellulose Fiber and White Papers segment. |
Weyerhaeuser Company with its Weyerhaeuser Real Estate Company and Other Related Subsidiaries
Accounted for on the Equity Method, but Excluding the Undistributed Earnings of Those Subsidiaries
Computation of Ratios of Earnings (Loss) to Fixed Charges
(Dollar amounts in thousands)
Thirteen weeks ended | ||||||||
March 26, 2006 | March 27, 2005 | |||||||
Available earnings (loss): | ||||||||
Earnings (loss) before interest expense, amortization of debt expense and income taxes | $ | (349,220 | ) | $ | 562,758 | |||
Add: interest portion of rental expense | 13,150 | 13,269 | ||||||
Deduct: undistributed earnings (loss) of equity affiliates | (900 | ) | 640 | |||||
Deduct: undistributed earnings (loss) before income taxes of Weyerhaeuser Real Estate Company and other related subsidiaries | (171,494 | ) | (182,849 | ) | ||||
Available earnings (loss) | $ | (508,464 | ) | $ | 393,818 | |||
Fixed charges: | ||||||||
Interest expense incurred | 149,598 | 192,258 | ||||||
Amortization of debt expense | 2,644 | 3,322 | ||||||
Interest portion of rental expense | 13,150 | 13,269 | ||||||
Total fixed charges | $ | 165,392 | $ | 208,849 | ||||
Ratio of earnings (loss) to fixed charges | — | 1.89 | ||||||
Coverage deficiency(2) | $ | (673,856 | ) | — | ||||
(2) | The coverage deficiency of Weyerhaeuser Company with its Weyerhaeuser Real Estate company and other related subsidiaries accounted for on the equity method, but excluding the undistributed earnings of those subsidiaries for the thirteen weeks ended March 26, 2006 includes a charge of $746 million arising from the impairment of goodwill associated with the Cellulose Fiber and White Papers segment. |