Weyerhaeuser (WY) 10-Q 10 Aug 09 2009 Q2 Quarterly report Financial data

Statement Of Income Alternative

Statement Of Income Alternative (USD $)
In Millions, except Share data in Thousands	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 29, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 29, 2008
Net sales and revenues	$1,391	$2,174	$2,666	$4,216
Costs and expenses:
Costs and Expenses, Total	1,453	2,580	3,058	4,880
Operating loss	(62)	(406)	(392)	(664)
Gain on Uruguay restructuring (Note 9)			0	101
Loss from continuing operations before income taxes	(148)	(474)	(590)	(854)
Income taxes	32	214	208	353
Loss from continuing operations	(116)	(260)	(382)	(501)
Discontinued operations, net of income taxes (Note 3)	0	111	0	198
Net loss	(116)	(149)	(382)	(303)
Less: Net loss attributable to noncontrolling interests	10	53	12	59
Net loss attributable to Weyerhaeuser common shareholders	(106)	(96)	(370)	(244)
Basic and diluted earnings (loss) per share attributable to Weyerhaeuser common shareholders (Note 4):
Continuing operations	-0.5	-0.98	-1.75	-2.1
Discontinued operations	$0	0.53	$0	0.94
Net loss per share	-0.5	-0.45	-1.75	-1.16
Dividends paid per share	0.25	0.6	0.5	1.2
Weighted average shares outstanding (in thousands) (Note 4)
Basic	211,356	211,262	211,328	211,228
Diluted	211,356	211,262	211,328	211,228
Forest Products:
Net sales and revenues	1,192	1,820	2,295	3,491
Costs and expenses:
Costs of products sold	1,050	1,518	2,028	2,917
Alternative fuel mixture credits	(107)	0	(107)	0
Depreciation and amortization	125	146	247	291
Selling expenses	33	57	76	116
General and administrative expenses	83	125	179	273
Research and development expenses	15	18	28	35
Charges for restructuring and closures (Note 6)	46	44	128	77
Impairment of goodwill and other assets (Note 6)	20	51	38	82
Other operating costs (income), net	(77)	(40)	(71)	(1)
Costs and Expenses, Total	1,188	1,919	2,546	3,790
Interest expense incurred	(107)	(126)	(215)	(258)
Less: interest capitalized	2	21	4	45
Interest income and other	13	16	27	29
Gain on Uruguay restructuring (Note 9)	0	101	0	101
Equity in income (loss) of affiliates	0	3	3	(2)
Real Estate:
Net sales and revenues	199	354	371	725
Costs and expenses:
Costs and operating expenses	164	313	315	636
Depreciation and amortization	4	5	8	9
Selling expenses	20	37	42	73
General and administrative expenses	17	27	45	56
Other operating costs (income), net	7	(1)	7	(1)
Impairment of long-lived assets and other related charges (Note 8)	53	280	95	317
Costs and Expenses, Total	265	661	512	1,090
Interest expense incurred	(7)	(14)	(14)	(26)
Less: interest capitalized	7	14	14	26
Interest income and other	1	0	2	1
Equity in income (loss) of affiliates	11	1	13	1
Impairment of investments and other related charges (Note 8)	($6)	($84)	($32)	($107)

Statement Of Financial Position

Statement Of Financial Position Classified (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
Current assets:
Assets, Total	$15,842	$16,735
Current liabilities:
Liabilities, Total	11,565	11,888
Weyerhaeuser shareholders' interest:
Common shares: $1.25 par value; authorized 400,000,000 shares; issued and outstanding: 211,356,803 and 211,289,320 shares	264	264
Other capital	1,776	1,767
Retained earnings	2,855	3,278
Cumulative other comprehensive loss (Note 14)	(646)	(495)
Total Weyerhaeuser shareholders' interest	4,249	4,814
Noncontrolling interest	28	33
Total equity	4,277	4,847
Total liabilities and equity	15,842	16,735
Forest Products:
Current assets:
Cash and cash equivalents	1,745	2,288
Short-term investments	60	138
Receivables, less allowances of $8 and $7	402	429
Receivables for taxes	336	73
Receivable from pension trust (Note 13)	285	200
Inventories (Note 10)	530	702
Prepaid expenses	92	101
Deferred tax assets	151	159
Total current assets	3,601	4,090
Property and equipment, less accumulated depreciation of $6,460 and $6,252	3,747	3,869
Construction in progress	108	104
Timber and timberlands at cost, less depletion charged to disposals	4,173	4,205
Investments in and advances to equity affiliates	200	202
Goodwill	40	43
Deferred pension and other assets	600	651
Restricted assets held by special purpose entities	916	916
Assets, Total	13,385	14,080
Current liabilities:
Notes payable and commercial paper	1	1
Current maturities of long-term debt (Note 12)	388	407
Accounts payable	314	381
Accrued liabilities (Note 11)	816	985
Total current liabilities	1,519	1,774
Long-term debt (Note 12)	5,153	5,153
Deferred income taxes	1,677	1,805
Deferred pension, other postretirement benefits and other liabilities	1,699	1,566
Liabilities (nonrecourse to Weyerhaeuser) held by special purpose entities	766	764
Commitments and contingencies (Note 15)	0	0
Liabilities, Total	10,814	11,062
Real Estate:
Current assets:
Cash and cash equivalents	1	6
Receivables, less discounts and allowances of $2 and $4	46	74
Real estate in process of development and for sale	631	751
Land being processed for development	1,146	1,121
Investments in and advances to equity affiliates	16	30
Deferred tax assets	419	438
Other assets	180	195
Consolidated assets not owned	18	40
Assets, Total	2,457	2,655
Current liabilities:
Long-term debt (Note 12)	456	456
Other liabilities	294	353
Consolidated liabilities not owned	1	17
Commitments and contingencies (Note 15)	0	0
Liabilities, Total	$751	$826

1_Statement Of Financial Positi

Statement Of Financial Position Classified (Parenthetical) (USD $)
In Millions, except Share data	Jun. 30, 2009	Dec. 31, 2008
Common shares, par value	1.25	1.25
Common shares, authorized	400,000,000	400,000,000
Common shares, issued	211,356,803	211,289,320
Common shares, outstanding	211,356,803	211,289,320
Forest Products:
Receivables, allowances	$8	$7
Property and equipment, accumulated depreciation	6,460	6,252
Real Estate:
Receivables, discounts and allowances	$2	$4

Statement Of Cash Flows Indirec

Statement Of Cash Flows Indirect (USD $)
In Millions	6 Months Ended Jun. 30, 2009		6 Months Ended Jun. 29, 2008		3 Months Ended Jun. 30, 2009		3 Months Ended Jun. 29, 2008		6 Months Ended Jun. 30, 2009		6 Months Ended Jun. 29, 2008		6 Months Ended Jun. 30, 2009		6 Months Ended Jun. 29, 2008
Cash flows from operations:
Net loss	($382)		($303)						($281)		$17		($101)		($320)
Noncash charges (credits) to income:
Depreciation, depletion and amortization	255		364						247		355		8		9
Deferred income taxes, net	2		(135)						(17)		(23)		19		(112)
Pension and other postretirement benefits (Note 13)	(22)		(74)						(20)		(75)		(2)		1
Share-based compensation expense	11		33						9		31		2		2
Equity in (income) loss of affiliates and unconsolidated entities	(16)		1						(3)		2		(13)		(1)
Litigation charges	20		0						20		0		0		0
Charges for impairment of assets (Notes 6 and 8)	165		511						38		87		127		424
Net gains on dispositions of assets and operations (Note 7)	(23)		(20)						(23)		(20)		0		0
Increase to environmental liability reserve (Note 7)	0		17						0		17		0		0
Gain on Uruguay restructuring (Note 9)	0		(101)		0		(101)		0		(101)
Foreign exchange transaction (gains) losses (Note 7)	(17)		8						(17)		8		0		0
Decrease (increase) in working capital:
Receivables	(218)		(240)						(236)		(192)		18		(48)
Inventories, real estate and land	211		84						165		38		46		46
Prepaid expenses	11		39						10		43		1		(4)
Accounts payable and accrued liabilities	(254)		(110)						(173)		(68)		(81)		(42)
Deposits on land positions	3		(42)						0		0		3		(42)
Intercompany advances	0	[2]	0	[2]					0	[2]	0	[2]	150	[2]	(181)	[2]
Other	(56)		(124)						(65)		(122)		9		(2)
Cash from operations	(310)		(92)						(346)		(3)		186		(270)
Cash flows from investing activities:
Property and equipment	(89)		(215)						(85)		(205)		(4)		(10)
Timberlands reforestation	(22)		(27)						(22)		(27)		0		0
Acquisition of timberlands	(7)		(107)						(7)		(107)		0		0
Redemption of short-term investments	78		0						78		0		0		0
Investments in and advances to equity affiliates	1		(67)						4		(16)		(3)		(51)
Proceeds from sale of assets and operations	37		99						37		99		0		0
Uruguay restructuring (Note 9)	0		(23)						0		(23)		0		0
Loan to pension trust (Note 13)	(85)		0						(85)		0		0		0
Intercompany dividends	0	[3]	0	[3]					250	[3]	0	[3]	0	[3]	0	[3]
Intercompany advances	0	[3]	0	[3]					(221)	[3]	133	[3]	0	[3]	0	[3]
Other	13		4						13		4		0		0
Cash from investing activities	(74)		(336)						(38)		(142)		(7)		(61)
Cash flows from financing activities:
Notes, commercial paper borrowings and revolving credit facilities, net	0		830						0		410		0		420
Cash dividends	(106)		(253)						(106)		(253)		0		0
Change in book overdrafts	(34)		(39)						(30)		(23)		(4)		(16)
Payments on debt	(19)		(107)						(19)		(1)		0		(106)
Exercises of stock options	0		3						0		3		0		0
Repurchase of common stock	(2)		0						(2)		0		0		0
Intercompany dividends	0	[3]	0	[3]					0	[3]	0	[3]	(250)	[3]	0	[3]
Intercompany advances	0	[3]	0	[3]					0	[3]	0	[3]	71	[3]	48	[3]
Other	(3)		(31)						(2)		(3)		(1)		(28)
Cash from financing activities	(164)		403						(159)		133		(184)		318
Net change in cash and cash equivalents	(548)		(25)						(543)		(12)		(5)		(13)
Cash and cash equivalents at beginning of period	2,294	[1]	114	[1]					2,288	[1]	93	[1]	6	[1]	21	[1]
Cash and cash equivalents at end of period	1,746	[1]	89	[1]	1,745	[1]	81	[1]	1,745	[1]	81	[1]	1	[1]	8	[1]
Cash paid (received) during the year for:
Interest, net of amount capitalized	213		216						213		216		0		0
Income taxes	$63	[2]	$28	[2]					$300	[2]	$6	[2]	($237)	[2]	$22	[2]
[1]Includes cash and cash equivalents of discontinued operations.
[2]Income taxes paid or received by Forest Products and Real Estate include intercompany payments related to income taxes. These intercompany transactions flow through the intercompany advances lines in the statement of cash flows in either operating or investing as discussed in footnote (1) above, and may differ in timing from income tax payments to or receipts from the taxing authorities. Actual income taxes paid to (received from) the taxing authorities are reflected by consolidated cash paid (received) for taxes.
[3]Intercompany dividends, loans and advances represent payments and receipts between Forest Products and Real Estate and are classified as operating, investing or financing based on the perspective of each entity and the characteristics of the underlying cash flows. These amounts are eliminated and do not appear in the consolidated cash flows above.

Notes to Financial Statements

Notes to Financial Statements
	6 Months Ended Jun. 30, 2009 USD / shares
Notes to Financial Statements [Abstract]
NOTE 1: BASIS OF PRESENTATION	NOTE 1: BASIS OF PRESENTATION Our consolidated financial statements provide an overall view of our results and financial condition. They include our accounts and the accounts of entities we control, including: majority-owned domestic and foreign subsidiaries and variable interest entities in which we are the primary beneficiary. They do not include our intercompany transactions and accounts, which are eliminated. We account for investments in and advances to unconsolidated equity affiliates using the equity method, with taxes provided on undistributed earnings. This means that we record earnings and accrue taxes in the period earnings are recognized by our unconsolidated equity affiliates. We report our financial results and condition in two groups: Forest Products our forest products-based operations, principally the growing and harvesting of timber, the manufacture, distribution and sale of forest products and corporate governance activities; and Real Estate our real estate development and construction operations. Throughout these Notes to Consolidated Financial Statements, unless specified otherwise, references to Weyerhaeuser, we and our refer to the consolidated company, including both Forest Products and Real Estate. In December 2008, our board of directors amended our bylaws to adopt a December31 fiscal year-end. Previously we reported results on a fiscal calendar ending the last Sunday of the calendar year. Second quarter 2008 ended June29, 2008, and included 91 days. Year-to-date 2008 included 182 days. Beginning in 2009, we report our results on a calendar quarter. Second quarter 2009 ended June30, 2009, and included 91 days. Year-to-date 2009 includes 181 days. The accompanying unaudited Consolidated Financial Statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Except as otherwise disclosed in these Notes to Consolidated Financial Statements, such adjustments are of a normal, recurring nature. The Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission pertaining to interim financial statements; as such certain disclosures normally provided in accordance with accounting principles generally accepted in the United States have been omitted. These Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Managements Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December31, 2008. The company has evaluated events and transactions through August7, 2009, the date these financial statements were issued, for items that should potentially be recognized or disclosed. RECLASSIFICATIONS We have reclassified certain balances and results from the prior year for consistency with our 2009 reporting. This makes year-to-year comparisons easier. Our reclassifications had no effect on net earnings (loss) or Weye
NOTE 2: ACCOUNTING PRONOUNCEMENTS	NOTE 2: ACCOUNTING PRONOUNCEMENTS ACCOUNTING CHANGES WE IMPLEMENTED IN 2009 We changed our accounting or disclosures for the following in first half 2009: fair value measurements for nonfinancial assets and nonfinancial liabilities, noncontrolling interests, disclosures about the fair value of financial instruments and subsequent events. Fair Value Measurements for Nonfinancial Assets and Nonfinancial Liabilities Statement 157 Statement of Financial Accounting Standards No.157, Fair Value Measurements was adopted for financial assets and financial liabilities in first quarter 2008. Issued by the FASB in September 2006, Statement 157: provides a common definition of fair value, establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value instruments. It applies when other accounting standards require or permit fair value measurements. However, it does not require any new fair value measurements. FSP FAS 157-2 FASB Staff Position (FSP) FAS 157-2, Effective Date of FASB Statement No.157 was adopted for nonfinancial assets and nonfinancial liabilities in first quarter 2009. Issued in February 2008 by the FASB, FSP FAS 157-2 delayed the effective date of Statement 157 for certain nonfinancial assets and nonfinancial liabilities. As a result of adopting FSP FAS 157-2, Statement 157 was applicable for the following nonfinancial assets and nonfinancial liabilities beginning in first quarter 2009: long-lived assets (asset groups) measured at fair value for an impairment assessment, reporting units measured at fair value in the first step of a goodwill impairment test, nonfinancial assets and nonfinancial liabilities measured at fair value in the second step of a goodwill impairment assessment and asset retirement obligations initially measured at fair value. Statement 157 includes a fair value hierarchy that is intended to increase consistency and comparability in fair value measurements and related disclosures. The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable. Observable inputs reflect assumptions market participants would use in pricing an asset or liability based on market data obtained from independent sources while unobservable inputs reflect a reporting entitys pricing based upon their own market assumptions. The fair value hierarchy consists of the following three levels: Level 1 Inputs are quoted prices in active markets for identical assets or liabilities. Level 2 Inputs are: quoted prices for similar assets or liabilities in an active market, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs other than quoted prices that are observable and market-corroborated inputs which are derived principally from or corroborated by observable market data. Level 3 Inputs are derived from valuation techniques
NOTE 3: DISCONTINUED OPERATIONS	NOTE 3: DISCONTINUED OPERATIONS There are no operations classified as discontinued for the quarter and year-to-date periods ended June30, 2009. Our discontinued operations for the quarter and year-to-date periods ended June29, 2008, include the operations of our Containerboard, Packaging and Recycling business and our Australian operations, both of which were sold in third quarter 2008. The following table summarizes the U.S. dollar components of net sales and revenues and net earnings from discontinued operations for the quarter and year-to-date periods ended June29, 2008: QUARTERENDED YEAR-TO-DATEENDED DOLLARAMOUNTSINMILLIONS JUNE 29, 2008 JUNE 29, 2008 Net Sales $ 1,436 $ 2,787 Income from operations 173 303 Interest expense (1 ) (1 ) Equity in income of affiliates 3 4 Income tax expense (64 ) (108 ) Net earnings from discontinued operations $ 111 $ 198 Results of discontinued operations: exclude certain general corporate overhead costs that have been allocated to and are included in contribution to earnings for the operating segments, include an allocation of net pension income and include interest expense only if the interest is directly attributable to the discontinued operations or is interest on debt that is required to be repaid as a result of a disposal transaction. Discontinued operations related to our Containerboard, Packaging and Recycling business do not include any allocation of interest expense. Discontinued operations related to our Australian operations include interest expense.
NOTE 4: NET EARNINGS (LOSS) PER SHARE	NOTE 4: NET EARNINGS (LOSS) PER SHARE Basic earnings per share is net earnings divided by the weighted average number of our outstanding common shares. Diluted earnings per share is net earnings divided by the sum of the: weighted average number of our outstanding common shares and the effect of our outstanding dilutive potential common shares. Dilutive potential common shares may include: outstanding stock options, restricted stock units or performance share units. We use the treasury stock method to calculate the effect of our outstanding dilutive potential common shares. Our basic and diluted loss per share attributable to Weyerhaeuser common shareholders was: $0.50 during second quarter and $1.75 during first half 2009, respectively; and $0.45 during second quarter and $1.16 during first half 2008, respectively. SHARES EXCLUDED FROM DILUTIVE EFFECT The following shares were not included in the computation of diluted earnings (loss) per share for the quarters and year-to-date periods ended June30, 2009, and June29, 2008, due to the companys net loss position from continuing operations. However, some or all of these shares may be dilutive potential common shares in future periods. Potential Shares Not Included in the Computation of Diluted Earnings (Loss) per Share QUARTER ENDED YEAR-TO-DATEENDED SHARESINTHOUSANDS JUNE30, 2009 JUNE29, 2008 JUNE30, 2009 JUNE29, 2008 Stock options 11,952 10,556 11,566 10,076 Performance share units 220 522 220 534 Restricted stock units 685 811 678 729 Share Repurchase Program In December 2008, we announced a stock repurchase program under which we are authorized to repurchase up to $250 million of outstanding common shares. Through June30, 2009, we had repurchased a total of 66,691 shares of common stock for approximately $2 million under the program. These repurchases took place during first half 2009 and all common stock purchases under the program were made in open-market transactions.
NOTE 5: SHARE-BASED COMPENSATION	NOTE 5: SHARE-BASED COMPENSATION In first half 2009, we granted 1,504,850 stock options, 94,850 stock appreciation rights and 238,344 restricted stock units. In addition, 193,582 outstanding restricted stock unit awards vested during first half 2009, resulting in the issuance of 134,174 shares of common stock. STOCK OPTIONS Most of the stock options were granted with the following standard vesting and post-termination vesting terms: options vest ratably over 4 years; options either vest or continue to vest in the event of death, disability, retirement or involuntary termination and options must be exercised within 10 years of the grant date. In addition, we granted 295,600 stock options to certain executives with the following vesting terms and post-termination provisions: options vest at the end of a 4-year required service period; options fully or partially vest in the event of death, disability or involuntary termination; and unvested options will be forfeited in the event of retirement. The weighted average exercise price of all of the stock options granted in first half 2009 was $25.29. Weighted Average Assumptions Used in Estimating the Value of Stock Options Granted in First Half 2009 10-YEARSTANDARD OPTIONS 10-YEAREXECUTIVE OPTIONS Expected volatility 36.61 % 36.51 % Expected dividends 3.95 % 3.95 % Expected term (in years) 6.16 7.08 Risk-free rate 2.54 % 2.75 % Weighted average grant date fair value $ 6.50 $ 6.69 STOCK APPRECIATION RIGHTS Stock appreciation rights represent liability-classified awards that are remeasured to reflect the fair value at each reporting period. The following table shows the weighted average assumptions applied to all outstanding stock appreciation rights as of June30, 2009. Weighted Average Assumptions Used to Remeasure the Value of Stock Appreciation Rights as of June30, 2009 June30, 2009 Expected volatility 43.89 % Expected dividends 3.29 % Expected term (in years) 4.15 Risk-free rate 2.19 % Weighted average fair value $ 3.52 RESTRICTED STOCK UNITS The weighted average fair value of the restricted stock units granted in first half 2009 was $25.41. The post-termination vesting provisions for restricted stock units granted in 2009 were as follows: restricted stock units vest ratably over 4 years; and restricted stock units will be forfeited upon termination of employment for any reason, including retirement or involuntary termination.
NOTE 6: CHARGES FOR FOREST PRODUCTS RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS	NOTE 6: CHARGES FOR FOREST PRODUCTS RESTRUCTURING, CLOSURES AND ASSET IMPAIRMENTS Actions related to the following Wood Products operations, coupled with Corporate restructuring, resulted in the majority of closure and restructuring charges in 2008 and first half 2009: TYPE OF OPERATION LOCATION CURRENT STATUS Softwood lumber Aberdeen,WA Permanently closed Coburg, OR Permanently closed Carrot River, SK Permanently closed Dallas, OR Permanently closed Green Mountain, WA Permanently closed Kamloops, BC Permanently closed Pine Hill, AL Indefinitely closed Taylor,LA Permanently closed WrightCity,OK Indefinitely closed Veneer and plywood Aberdeen, WA Permanently closed Dodson, LA Indefinitely closed Hudson Bay, SK Permanently closed Pine Hill, AL Indefinitely closed Engineered I-joists Evergreen, AL Indefinitely closed Valdosta, GA Indefinitely closed Engineered wood products Colbert, GA Indefinitely closed Deerwood, MN Indefinitely closed Evergreen, AL Indefinitely closed Hazard,KY Indefinitely closed Junction City, OR Indefinitely closed Simsboro, LA Indefinitely closed Vancouver, BC Permanently closed Strand technology Drayton Valley, AB Permanently closed Hudson Bay, SK Indefinitely closed Miramichi, NB Permanently closed Wawa, ON Indefinitely closed Hardwood lumber Delta, BC Permanently closed Trus Joist Commercial division Various Sale agreement signed Trucking Albany, OR Permanently closed iLevel service centers 7 U.S. distribution facilities Sold 9 U.S. distribution facilities Permanently closed We review the carrying value of our assets whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable through future operations.These events or changes in circumstances may include, but are not limited to: decisions made to curtail, close,sell or restructure operations; changes in the expected use of assets; and significant or prolonged adverse changes in financial markets and economic conditions in markets in which we operate. Charges for Forest Products restructuring, closures and asset impairmentsfor the quarters and year-to-date periods ended June30, 2009, and June29, 2008, include: QUARTERENDED YEAR-TO-DATEENDED DOLLARAMOUNTSINMILLIONS JUNE30, 2009 JUNE29, 2008 JUNE30, 2009 JUNE29, 2008 Restructuring and closure charges: Termination benefits $ 13 $ 41 $ 79 $ 75 Pension and postretirement charges 26 1 35 1 Other restructuring and closure costs 7 4 14 9 46 46 128 85 Less: discontin
NOTE 7: OTHER OPERATING INCOME, NET	NOTE 7: OTHER OPERATING INCOME, NET Other operating income, net: exclude our Real Estate operations, include both recurring and occasional income and expense items and can fluctuate from year to year. Various Income and Expense Items Included in Forest Products Other Operating Income, Net QUARTERENDED YEAR-TO-DATEENDED DOLLARAMOUNTSINMILLIONS JUNE30, 2009 JUNE29, 2008 JUNE 30, 2009 JUNE 29, 2008 Foreign exchange (gain) loss $ (21 ) $ (3 ) $ (17 ) $ 8 Gain on disposal of assets (21 ) (16 ) (23 ) (20 ) Insurance recoveries (11 ) (13 ) (6 ) Litigation (reimbursements) expense, net (9 ) 16 9 36 Land management income (5 ) (4 ) (9 ) (9 ) Environmental remediation reserve adjustment 17 Gain on change in post-retirement benefits (52 ) (52 ) Other, net (10 ) (9 ) (18 ) (16 ) (77 ) (68 ) (71 ) (42 ) Less: discontinued operations (28 ) (41 ) Total other operating income, net $ (77 ) $ (40 ) $ (71 ) $ (1 ) Foreign exchange (gains) losses result from changes in exchange rates primarily related to Weyerhaeusers Canadian operations.
NOTE 8: REAL ESTATE ASSET IMPAIRMENTS AND OTHER RELATED CHARGES	NOTE 8: REAL ESTATE ASSET IMPAIRMENTS AND OTHER RELATED CHARGES We review homebuilding long-lived assets and investments for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets are stated at cost unless events or circumstances trigger an impairment review. If a triggering event occurs and the assets carrying amount is not recoverable, we record an impairment loss, which is the difference between the assets book value and fair value. The determination of fair value is based on appraisals and market pricing of comparable assets when that information is available, or the discounted value of estimated future net cash flows from these assets. During 2008 and 2009, unfavorable market conditions caused us to re-evaluate our strategy to develop certain projects, reduce sales prices, and increase customer incentives. The recoverability of our investments was reassessed, which triggered impairment charges. Write downs of impaired assets are recorded as adjustments to the cost basis of inventory and investments. Total Real Estate Impairment and Other Investment-Related Charges QUARTERENDED YEAR-TO-DATEENDED DOLLARAMOUNTSINMILLIONS JUNE30, 2009 JUNE29, 2008 JUNE 30, 2009 JUNE 29, 2008 Impairments of long-lived assets and other related charges: Charges attributable to Weyerhaeuser shareholders: Real estate impairments $ 34 $ 246 $ 49 $ 279 Write-off of pre-acquisition costs 11 8 35 12 Other impairment related charges 3 45 254 87 291 Charges attributable to noncontrolling interests 8 26 8 26 Total impairments of long-lived assets and other related charges 53 280 95 317 Impairments of investments and other related charges: Charges attributable to Weyerhaeuser shareholders 5 57 29 75 Charges attributable to noncontrolling interests 1 27 3 32 Total impairments of investments and other related charges 6 84 32 107 Total Real Estate impairments and other related charges $ 59 $ 364 $ 127 $ 424 The write-off of pre-acquisition costs primarily relates to forfeited deposits on options to purchase land. The charge for second quarter 2009 includes the forfeiture of deposits on four projects that were planned for development of approximately 930 residential lots. As of June30, 2009, we control approximately 65,000 lots under option. Impairments of investments and other related charges relate to loans and investments in unconsolidated entities. In addition to the Real Estate charges included above, Forest Products has recorded charges for the impairment of interest that previously was capitalized on Real Estate assets of $5 million in second quarter 2008 and $1 million and $28 million during the year-to-date periods ended June
NOTE 9: RESTRUCTURING OF URUGUAY JOINT VENTURES	NOTE 9: RESTRUCTURING OF URUGUAY JOINT VENTURES In April 2008, we completed the process of restructuring our ownership interests in Uruguay and partitioned the timberland and other assets formerly owned through a joint venture. As part of the partitioning, we contributed $23 million, net of cash acquired, to obtain full ownership of a plywood mill formerly owned through the joint venture. These assets and the results of their operations were consolidated in the accompanying financial statements as of April 2008. An estimated noncash restructuring gain of $101 million was recorded in our Corporate and Other segment during second quarter 2008. An additional $149 million gain was recorded in the fourth quarter 2008 when the valuation of the partitioned assets was finalized. There was no tax provision on the gain primarily due to a forestry exemption from income taxes in Uruguay, and the fact that the assets are considered indefinitely invested.
NOTE 10: INVENTORIES	NOTE 10: INVENTORIES Forest Products inventories include raw materials, work-in-process and finished goods. DOLLAR AMOUNTS IN MILLIONS JUNE30, 2009 DECEMBER31, 2008 Logs and chips $ 39 $ 63 Lumber, plywood, panels and engineered lumber 167 260 Pulp and paperboard 108 126 Other products 74 103 Materials and supplies 142 150 Total inventories $ 530 $ 702
NOTE 11: ACCRUED LIABILITIES	NOTE 11: ACCRUED LIABILITIES Forest Products accrued liabilities were $816 million as of June30, 2009. They were comprised of the following: payroll, income taxes, Social Security taxes, real and personal property taxes, interest and other items. DOLLAR AMOUNTS IN MILLIONS JUNE30, 2009 DECEMBER31, 2008 Payroll wages and salaries, retirement, severance and vacation pay $ 396 $ 422 Income taxes 2 53 Taxes Social Security and real and personal property 40 41 Interest 118 120 Dividends 53 Other 260 296 Total accrued liabilities $ 816 $ 985
NOTE 12: FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 12: FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of our long-term debt was $5.4 billion as of June30, 2009. The following table presents our liabilities that are not measured at fair value on a recurring basis. The estimated fair values and carrying values consisted of the following: Fair Value Measurements Using DOLLARAMOUNTSINMILLIONS CarryingValuesat June 30, 2009 FairValuesat June30,2009 QuotedPricesin ActiveMarketsfor Identical Assets (Level 1) SignificantOther ObservableInputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Liabilities: Long-term debt (including current maturities) Forest Products $ 5,541 $ 4,937 $ $ 4,937 $ Real Estate $ 456 $ 428 $ $ 428 $ To estimate the fair value of long-term debt, we used the following valuation approaches: market approach based on quoted market prices for the same types and issues of our debt; or income approach based on the discounted value of the future cash flows using market yields for the same type and comparable issues of debt. The inputs to the valuations of our long-term debt instruments are based on market data obtained from independent sources or information derived principally from observable market data. The difference between the fair value and the carrying value represents the theoretical net premium or discount we would pay or receive to retire all debt at the measurement date. We believe that our other financial instruments, including cash, short-term investments, receivables, and payables, have net carrying values that approximate their fair values with only insignificant differences. This is primarily due to: the short-term nature of these instruments, carrying short-term investments at expected net realizable value and the allowance for doubtful accounts. We also have long-term investments that are classified as available-for-sale securities. These securities carrying values equal their fair values according to Statement of Financial Accounting Standard No.115, Accounting for Certain Investments in Debt and Equity Securities.
NOTE 13: PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS	NOTE 13: PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS We recognized net pension and other postretirement benefit credits of $22 million during first half 2009 and $74 million during first half 2008. The components of net periodic benefit credits (costs) are: PENSION QUARTER ENDED YEAR-TO-DATEENDED DOLLAR AMOUNTS IN MILLIONS JUNE30, 2009 JUNE29, 2008 JUNE30, 2009 JUNE29, 2008 Service cost $ $ (27 ) $ (29 ) $ (60 ) Interest cost (70 ) (79 ) (139 ) (151 ) Expected return on plan assets 115 142 240 287 Amortization of gain (loss) (10 ) 3 (14 ) 10 Amortization of prior service costs (4 ) (9 ) (10 ) (17 ) Loss due to curtailment and special termination benefits (24 ) (1 ) (31 ) (1 ) Total net periodic benefit credits $ 7 $ 29 $ 17 $ 68 OTHER POSTRETIREMENT BENEFITS QUARTER ENDED YEAR-TO-DATEENDED DOLLAR AMOUNTS IN MILLIONS JUNE30, 2009 JUNE29, 2008 JUNE30, 2009 JUNE29, 2008 Service cost $ (1 ) $ (5 ) $ (2 ) $ (10 ) Interest cost (10 ) (17 ) (19 ) (32 ) Amortization of loss (4 ) (4 ) (8 ) (9 ) Amortization of prior service credits 20 3 41 5 Gain (loss) due to curtailment and special termination benefits (5 ) 52 (7 ) 52 Total net periodic benefit credits $ $ 29 $ 5 $ 6 The 2009 curtailment and special termination benefits are related to involuntary terminations, due to restructuring activities and the closure of Wood Products facilities. During second quarter 2008, we announced amendments to our postretirement medical and life insurance benefit plans for U.S. salaried employees that reduced or eliminated certain medical and life insurance benefits that were available to both past and present employees. These changes resulted in a $52 million curtailment gain recognized in second quarter 2008 for full recognition of the pre-existing prior service credit for affected employees. Fair Value of Pension Plan Assets As disclosed in our Annual Report on Form 10-K for the year ended December31, 2008, the value reported for our pension plan assets at the end of 2008 was estimated. Additional information regarding the year-end values generally becomes available to us during the first half of the following year. We finalized the valuations of our pension plan assets during second quarter 2009. Based on the final valuations, the year-end value of the pension plan assets is less than the estimated values reported as of December31, 2008. Our consolidated balance sheet as of June30, 2009, has been adjusted to reflect the net funded status of our pension plans that would have been recorded as of December31, 2008, if the final valuations had been available to us as of the end of 2008. Based on this information, we recorded the foll
NOTE 14: COMPREHENSIVE INCOME (LOSS)	NOTE 14: COMPREHENSIVE INCOME (LOSS) Our comprehensive loss attributable to Weyerhaeuser common shareholders, net of tax, was $85 million for second quarter 2009 and $521 million year-to-date 2009. Items Included in Our Comprehensive Income (Loss) QUARTER ENDED YEAR-TO-DATEENDED DOLLARAMOUNTSINMILLIONS JUNE30, 2009 JUNE29, 2008 JUNE30, 2009 JUNE29, 2008 Consolidated net loss $ (116 ) $ (149 ) $ (382 ) $ (303 ) Other comprehensive income (loss): Foreign currency translation adjustments 54 14 32 (34 ) Actuarial net gains (losses), net of tax (20 ) 27 (175 ) 26 Prior service credits (costs), net of tax (14 ) 163 (8 ) 168 Net derivative gains on cash flow hedges, net of tax 4 21 Reclassification of net gains on cash flow hedges, net of tax (4 ) (1 ) (7 ) Unrealized gains (losses) on available-for-sale securities 1 1 (1 ) Total other comprehensive income (loss) 21 204 (151 ) 173 Total comprehensive income (loss) (95 ) 55 (533 ) (130 ) Less: Comprehensive loss attributable to noncontrolling interests 10 53 12 59 Comprehensive income (loss) attributable to Weyerhaeuser common shareholders $ (85 ) $ 108 $ (521 ) $ (71 ) The net actuarial loss recognized in first half 2009 reflects a change in the estimated fair value of pension plan assets as of December31, 2008. As discussed in Note 13: Pension and Other Postretirement Benefit Plans, we recorded adjustments to the net funded status of our pension plans in first half 2009. Cumulative Other Comprehensive Loss Our cumulative other comprehensive loss, net of tax, was $646 million as of June30, 2009. Items Included in Our Cumulative Other Comprehensive Loss DOLLAR AMOUNTS IN MILLIONS JUNE30, 2009 DECEMBER31, 2008 Foreign currency translation adjustments $ 330 $ 298 Net pension and other postretirement benefit loss not yet recognized in earnings, net of tax (1,069 ) (894 ) Prior service credit not yet recognized in earnings, net of tax 91 99 Cash flow hedge fair value adjustments, net of tax 1 Unrealized gains on available-for-sale securities 2 1 Total cumulative other comprehensive loss $ (646 ) $ (495 )
NOTE 15: LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES	NOTE 15: LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES This note provides details about our: legal proceedings and environmental matters. LEGAL PROCEEDINGS Major legal proceedings involving us described in this section are: hardboard siding claims and alder antitrust litigation. We also are a party to other legal matters generally incidental to our business. The ultimate outcome of any legal proceeding: is subject to a great many variables and cannot be predicted with any degree of certainty. However, whenever probable losses from litigation could reasonably be determined we believe that we have established adequate reserves. In addition, we believe the ultimate outcome of the legal proceedings: could have a material adverse effect on our results of operations, cash flows or financial position in any given quarter or year; but will not have a material adverse effect on our long-term results of operations, cash flows or financial position. Hardboard Siding Claims This is a nationwide claims-based settlement of hardboard siding class action cases against us. Under the settlement which we entered into in June 2000 all persons who own or owned structures in the United States on which our hardboard siding had been installed from January1, 1981, through December31, 1999, can file claims. An independent adjuster reviews claims submitted and determines payment. Claims are paid as submitted over a nine-year period. The right to file claims expires in three six-year increments and claims for the first two periods may no longer be filed. The expiration dates are: 2003 persons who had our hardboard siding installed from 1981 to 1986. 2006 persons who had our hardboard siding installed from 1987 to 1993. 2009 persons who had our hardboard siding installed from 1994 to 1999. Status. Total claims paid through June30, 2009, were $113 million. The reserve for future claim payments was $5 million as of June30, 2009. We have recovered a total of $52 million through negotiated settlements with our insurance carriers. We have no litigation pending with any persons or entities that have opted out of the class. However, it is possible that persons or entities that have opted out may file claims in the future. We believe our reserve balance is adequate. However, determining reserves required to fund any future claims involves judgments and projections of future claims rates and amounts. At this time, we are unable to estimate the amount of additional charges if any we may need for these claims in the future. Claims Activity and Average Damage Award Paid YEAR-TO-DATEENDED YEARENDED YEARENDED JUNE 30, 2009 DECEMBER31,2008 DECEMBER30,2007 Number of claims filed during the period 1,055 1,755 1,460 Number of claims resolved 810 1,410 1,980 Number of claims unresolved at end of period 1,555 1,310 965 Number of damage awards paid 615 1,070 1,200 Average damage award paid $ 1,400 $ 1,574
NOTE 16: BUSINESS SEGMENTS	NOTE 16: BUSINESS SEGMENTS We are principally engaged in the growing and harvesting of timber; the manufacture, distribution and sale of forest products; and real estate development and construction. Our principal business segments are: Timberlands which includes logs; chips; timber; minerals, oil, gas; and international wood products; Wood Products which includes softwood lumber, engineered lumber, structural panels, hardwood lumber and building materials distribution; Cellulose Fibers which includes pulp, liquid packaging board and an equity interest in a newsprint joint venture; Real Estate which includes real estate development, construction and sales; and Corporate and Other which includes governance-related corporate support activities, transportation and results of international operations outside of North America that have been sold. We also may record gains or charges in the Corporate and Other segment related to dispositions or events that are not related to an individual operating segment. In addition, in 2008 we had Containerboard, Packaging and Recycling operations. These operations were sold to International Paper in August 2008. KEY FINANCIAL DATA BY BUSINESS SEGMENT Effective with third quarter 2008, our recurring postretirement credits (costs) are no longer being allocated to the Forest Products segments. These credits (costs) are reported in the Corporate and Other segment with the exception of certain union-negotiated postretirement benefits that are reflected in the Cellulose Fibers segment. Net recurring forest products pension credits were included in the Corporate and Other segment for all periods presented. Pension and postretirement credits (costs) related to real estate operations are reported in the Real Estate segment. Net pension and postretirement credits (costs) related to settlements, curtailments and special termination benefits continue to be reported in the appropriate business segment. Net Recurring Postretirement Credits (Costs) Included in Segment Contribution to Earnings QUARTERENDED YEAR-TO-DATEENDED DOLLARAMOUNTSINMILLIONS JUNE30, 2009 JUNE29, 2008 JUNE 30, 2009 JUNE 29, 2008 Net postretirement credits (costs): Timberlands $ $ (1 ) $ $ (2 ) Wood Products (6 ) (13 ) Cellulose Fibers (2 ) (3 ) (3 ) (6 ) Real Estate (1 ) (2 ) Containerboard, Packaging and Recycling (5 ) (10 ) Corporate and Other 7 (7 ) 15 (13 ) Total $ 5 $ (23 ) $ 12 $ (46 ) An analysis and reconciliation of the companys business segment information to the respective information in the Consolidated Financial Statements is as follows: QUARTER ENDED YEAR-TO-DATEENDED DOLLARAMOUNTSINMILLIONS JUNE30, 2009 JUNE29, 2008 JUNE30, 2009 JUNE29, 2008 Sales to and revenues from unaffiliated custom

Document Information

Document Information
	6 Months Ended Jun. 30, 2009 USD / shares
Document Information [Text Block]
Document Type	10-Q
Amendment Flag	false
Amendment Description	N.A.
Document Period End Date	2009-06-30

Entity Information

Entity Information (USD $)
	6 Months Ended Jun. 30, 2009	Jul. 31, 2009	Jun. 27, 2008
Entity [Text Block]
Trading Symbol	WY
Entity Registrant Name	WEYERHAEUSER CO
Entity Central Index Key	0000106535
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		211,356,803
Entity Public Float			$10,409,005,150