EXHIBIT 12
Weyerhaeuser Company and Subsidiaries
Computation of Ratios of Earnings to Fixed Charges
For the thirty-nine week periods ended September 24, 2006 and September 25, 2005
(Dollar amounts in thousands)
Thirty-nine weeks ended | ||||||||
September 24, 2006 | September 25, 2005 | |||||||
Available earnings: | ||||||||
Earnings from continuing operations before interest expense, amortization of debt expense and income taxes | $ | 607,868 | $ | 1,885,980 | ||||
Add: interest portion of rental expense | 47,078 | 44,294 | ||||||
Deduct: undistributed earnings of equity affiliates | (44,268 | ) | (20,055 | ) | ||||
Available earnings | $ | 610,678 | $ | 1,910,219 | ||||
Fixed charges: | ||||||||
Interest expense incurred: | ||||||||
Weyerhaeuser Company and subsidiaries, excluding Weyerhaeuser Real Estate Company and other related subsidiaries | 445,168 | 555,383 | ||||||
Weyerhaeuser Real Estate Company and other related subsidiaries | 50,162 | 40,018 | ||||||
Subtotal | 495,330 | 595,401 | ||||||
Less: intercompany interest | (8,756 | ) | 1,861 | |||||
Total interest expense incurred | 486,574 | 597,262 | ||||||
Amortization of debt expense | 7,592 | 12,472 | ||||||
Interest portion of rental expense | 47,078 | 44,294 | ||||||
Total fixed charges | $ | 541,244 | $ | 654,028 | ||||
Ratio of earnings to fixed charges | 1.13 | 2.92 | ||||||
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 thirty-nine week periods ended September 24, 2006 and September 25, 2005
(Dollar amounts in thousands)
Thirty-nine weeks ended | ||||||||
September 24, 2006 | September 25, 2005 | |||||||
Available earnings (loss): | ||||||||
Earnings from continuing operations before interest expense, amortization of debt expense and income taxes | $ | 574,193 | $ | 1,840,122 | ||||
Add: interest portion of rental expense | 41,446 | 39,765 | ||||||
Deduct: undistributed earnings of equity affiliates | (6,211 | ) | 3,172 | |||||
Deduct: undistributed earnings before income taxes of Weyerhaeuser Real Estate Company and other related subsidiaries | (430,438 | ) | (484,210 | ) | ||||
Available earnings (loss) | $ | 178,990 | $ | 1,398,849 | ||||
Fixed charges: | ||||||||
Interest expense incurred | 445,168 | 555,383 | ||||||
Amortization of debt expense | 7,592 | 12,472 | ||||||
Interest portion of rental expense | 41,446 | 39,765 | ||||||
Total fixed charges | $ | 494,206 | $ | 607,620 | ||||
Ratio of earnings to fixed charges | — | 2.30 | ||||||
Coverage deficiency(1) | $ | (315,216 | ) | $ | — | |||
(1) | 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 thirty-nine weeks ended September 24, 2006, includes a noncash charge of $749 million arising from the impairment of goodwill associated with the Cellulose Fiber and White Papers segment. |