EQUITY AFFILIATES

12 Months Ended

Dec. 31, 2011

Equity Method Investments and Joint Ventures [Abstract]

EQUITY AFFILIATES

EQUITY AFFILIATES

We have investments in unconsolidated equity affiliates over which we have significant influence that we account for using the equity method with taxes provided on undistributed earnings. We record earnings and accrue taxes in the period that the earnings are recorded by the affiliates.

This note provides information about our:

• Forest Products equity affiliates and

• Real Estate equity affiliates.

FOREST PRODUCTS EQUITY AFFILIATES

Following is a list of Forest Products equity affiliates as of December 31, 2011:

Details About Our Equity Affiliates

AFFILIATE	WHAT IT DOES	OUR OWNERSHIP
North Pacific Paper Corporation (NORPAC)	Owns and operates a newsprint manufacturing facility in Longview, Washington	50 percent
Catchlight Energy	Researching and developing technology for converting cellulose-based biomass into economical, low-carbon biofuels	50 percent
Liaison Technologies Inc.	Provides integration and data management services across a wide variety of industries worldwide	10 percent

Unconsolidated Financial Information of Forest Products Equity Affiliates

Aggregated assets, liabilities and operating results of the entities that we accounted for as equity affiliates are provided below.

Assets and Liabilities of Forest Products Equity Affiliates

DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2011		DECEMBER 31, 2010
Current assets	$	133	$	105
Noncurrent assets	$	536	$	496
Current liabilities	$	49	$	51
Noncurrent liabilities	$	178	$	161

Operating Results of Forest Products Equity Affiliates

DOLLAR AMOUNTS IN MILLIONS
	2011			2010			2009
Net sales and revenues	$	602		$	530		$	474
Operating loss	$	(3	)	$	(20	)	$	(12	)
Net loss	$	(3	)	$	(15	)	$	(16	)

Doing Business with Forest Products Affiliates

Doing business with our affiliates varies by the individual affiliate. We:

• provide a varying mix of goods and services to some of our affiliates and

• buy finished products from some of our affiliates.

The goods and services we provide include:

• raw materials,

• management and marketing services,

• support services and

• shipping services.

In addition, we manage cash for NORPAC under a services agreement. Weyerhaeuser holds the cash and records a payable balance to NORPAC, which is included in accounts payable in the accompanying Consolidated Balance Sheet. We had the following payable balances to NORPAC:

• $75 million at December 31, 2011; and

• $57 million at December 31, 2010.

REAL ESTATE EQUITY AFFILIATES

As of December 31, 2011, our Real Estate segment held equity investments in five real estate partnerships and limited liability companies. Our participation in these entities may be as a developer, a builder or an investment partner. Our ownership percentage varies from 7 percent to 50 percent depending on the investment. During 2011, our South Edge, LLC partnership, in which we held a five percent interest, was reorganized in bankruptcy proceedings. As a result, South Edge financial information for 2011 has been excluded from the following table. Pursuant to the plan of reorganization for South Edge, we became a member in a new entity that acquired the land previously owned by South Edge. Assets and liabilities of the new entity are included in the following table for 2011.

Assets and Liabilities of Real Estate Equity Affiliates

DOLLAR AMOUNTS IN MILLIONS
	DECEMBER 31, 2011		DECEMBER 31, 2010
Current assets	$	40	$	20
Noncurrent assets	$	264	$	718
Current liabilities	$	21	$	78
Noncurrent liabilities	$	94	$	384

Results of Operations From Real Estate Equity Affiliates

DOLLAR AMOUNTS IN MILLIONS
	2011		2010			2009
Net sales and revenues	$	13	$	51		$	39
Operating income (loss)	$	3	$	(31	)	$	(14	)
Net income (loss)	$	3	$	(32	)	$	(22	)