EXHIBIT 12
Weyerhaeuser Company and Subsidiaries
Computation of Ratios of Earnings to Fixed Charges
For the twenty-six week periods ended June 25, 2006 and June 26, 2005
(Dollar amounts in thousands)
Twenty-six weeks ended | ||||||||
June 25, 2006 | June 26, 2005 | |||||||
Available earnings: | ||||||||
Earnings from continuing operations before interest expense, amortization of debt expense and income taxes | $ | 194,038 | $ | 1,279,696 | ||||
Add: interest portion of rental expense | 31,292 | 29,642 | ||||||
Deduct: undistributed earnings of equity affiliates | (34,781 | ) | (13,766 | ) | ||||
Available earnings | $ | 190,549 | $ | 1,295,572 | ||||
Fixed charges: | ||||||||
Interest expense incurred: | ||||||||
Weyerhaeuser Company and subsidiaries, excluding Weyerhaeuser Real Estate Company and other related subsidiaries | 298,625 | 366,593 | ||||||
Weyerhaeuser Real Estate Company and other related subsidiaries | 32,159 | 26,807 | ||||||
Subtotal | 330,784 | 393,400 | ||||||
Less: intercompany interest | (2,751 | ) | 1,264 | |||||
Total interest expense incurred | 328,033 | 394,664 | ||||||
Amortization of debt expense | 5,290 | 8,288 | ||||||
Interest portion of rental expense | 31,292 | 29,642 | ||||||
Total fixed charges | $ | 364,615 | $ | 432,594 | ||||
Ratio of earnings (loss) to fixed charges | — | 2.99 | ||||||
Coverage deficiency(1) | $ | (174,066 | ) | — | ||||
(1) | The coverage deficiency of Weyerhaeuser Company and subsidiaries for the twenty-six weeks ended June 25, 2006, includes a noncash charge of $749 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
For the twenty-six week periods ended June 25, 2006 and June 26, 2005
(Dollar amounts in thousands)
Twenty-six weeks ended | ||||||||
June 25, 2006 | June 26, 2005 | |||||||
Available earnings (loss): | ||||||||
Earnings from continuing operations before interest expense, amortization of debt expense and income taxes | $ | 168,434 | $ | 1,248,253 | ||||
Add: interest portion of rental expense | 27,588 | 26,610 | ||||||
Deduct: undistributed earnings of equity affiliates | (6,844 | ) | (361 | ) | ||||
Deduct: undistributed earnings before income taxes of Weyerhaeuser Real Estate Company and other related subsidiaries | (294,959 | ) | (338,969 | ) | ||||
Available earnings (loss) | $ | (105,781 | ) | $ | 935,533 | |||
Fixed charges: | ||||||||
Interest expense incurred | 298,625 | 366,593 | ||||||
Amortization of debt expense | 5,290 | 8,288 | ||||||
Interest portion of rental expense | 27,588 | 26,610 | ||||||
Total fixed charges | $ | 331,503 | $ | 401,491 | ||||
Ratio of earnings (loss) to fixed charges | — | 2.33 | ||||||
Coverage deficiency(2) | $ | (437,284 | ) | — | ||||
(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 twenty-six weeks ended June 25, 2006, includes a noncash charge of $749 million arising from the impairment of goodwill associated with the Cellulose Fiber and White Papers segment. |