Weyerhaeuser (WY) 10-K 2010 FY Annual report

EXHIBIT 12

WEYERHAEUSER COMPANY AND SUBSIDIARIES

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

DOLLAR AMOUNTS IN MILLIONS
	Year Ended 2010			2009			2008			2007			2006
Available earnings (loss):
Earnings (loss) from continuing operations before interest expense, amortization of debt expense and income taxes	$	535		$	(306	)	$	(2,298	)	$	73		$	1,742
Add: interest portion of rental expense		28			42			43			42			40
Deduct: undistributed earnings of equity affiliates and minority interest in income of subsidiaries		12			21			199			199			(39	)
Available earnings (loss)	$	575		$	(243	)	$	(2,056	)	$	314		$	1,743
Fixed charges:
Interest expense incurred:
Weyerhaeuser Company and subsidiaries excluding Weyerhaeuser Real Estate Company and other related subsidiaries	$	401		$	457		$	466		$	564		$	506
Weyerhaeuser Real Estate Company and other related subsidiaries		28			35			60			65			67
Subtotal		429			492			526			629			573
Less: intercompany interest		(4	)		(5	)		(15	)		(8	)		(12	)
Total interest expense incurred		425			487			511			621			561
Amortization of debt expense		6			7			7			8			11
Interest portion of rental expense		28			42			43			42			40
Total fixed charges	$	459		$	536		$	561		$	671		$	612
Ratio of earnings to fixed charges		1.25												2.85
Coverage deficiency	$	—		$	779		$	2,617		$	357		$	—

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 TO FIXED CHARGES

DOLLAR AMOUNTS IN MILLIONS
	Year Ended 2010			2009			2008			2007			2006
Available earnings (loss):
Earnings (loss) from continuing operations before interest expense, amortization of debt expense and income taxes	$	501		$	(379	)	$	(2,347	)	$	16		$	1,668
Add: interest portion of rental expense		25			35			34			32			33
Deduct: undistributed earnings of equity affiliates and minority interest in income of subsidiaries		10			17			41			173			6
Add (deduct): undistributed earnings (losses) before income taxes of Weyerhaeuser Real Estate Company and other related subsidiaries		(41	)		303			1,422			(150	)		(711	)
Add: dividends paid to Weyerhaeuser		—			—			—			—			—
Available earnings (loss)	$	495		$	(24	)	$	(850	)	$	71		$	996
Fixed charges:
Interest expense incurred	$	401		$	457		$	466		$	564		$	506
Amortization of debt expense		6			7			7			8			11
Interest portion of rental expense		25			35			34			32			33
Total fixed charges	$	432		$	499		$	507		$	604		$	550
Ratio of earnings to fixed charges		1.15												1.81
Coverage deficiency	$	—		$	523		$	1,357		$	533		$	—