PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

6 Months Ended

Jun. 30, 2012

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

The components of net periodic benefit costs (credits) are:

	PENSION
	QUARTER ENDED						YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS	JUNE 30, 2012			JUNE 30, 2011			JUNE 30, 2012			JUNE 30, 2011
Service cost	$	12		$	13		$	26		$	25
Interest cost	66			70			131			139
Expected return on plan assets	(105		)	(106		)	(210		)	(211		)
Amortization of actuarial loss	45			34			87			69
Amortization of prior service cost	2			3			4			7
Loss due to curtailment and special termination benefits	—			—			—			1
Total net periodic benefit cost	$	20		$	14		$	38		$	30

	OTHER POSTRETIREMENT BENEFITS
	QUARTER ENDED						YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS	JUNE 30, 2012			JUNE 30, 2011			JUNE 30, 2012			JUNE 30, 2011
Service cost	$	1		$	—		$	1		$	1
Interest cost	3			6			7			12
Amortization of actuarial loss	3			4			7			7
Amortization of prior service credit	(57		)	(5		)	(115		)	(11		)
Other	—			—			4			4
Total net periodic benefit cost (credit)	$	(50	)	$	5		$	(96	)	$	13

During fourth quarter 2011, we ratified amendments to our postretirement medical and life insurance benefit plans for U.S. salaried employees that reduced or eliminated certain benefits that were available to both past and present employees. The company recognized a gain of $51 million in second quarter 2012 and $103 million in first half 2012 due to these benefit changes. This gain is included in other operating income and reflected in the amortization of prior service credit in the table above. As of the end of second quarter 2012, the gain for the fourth quarter amendments has been fully recognized.

FAIR VALUE OF PENSION PLAN ASSETS

We estimate the fair value of pension plan assets based upon the information available during the year-end

reporting process. In some cases, primarily private equity funds, the information available consists of net asset

values as of an interim date, cash flows between the interim date and the end of the year and market events. We revise the year-end estimated fair value of pension plan assets to incorporate year-end net asset values reflected in audited financial statements received after we have filed our Annual Report on Form 10-K. The fair value of pension assets as of December 31, 2011 were $15 million higher than we estimated at year end.

We recorded the following adjustment during second quarter 2012 to reflect updated participant information as of the beginning of the year, which was partially offset by the increase in the pension assets:

• $23 million increase in the liability for deferred pension;

• $9 million decrease in the liability for deferred income taxes; and

• $14 million net increase in cumulative other comprehensive loss, which resulted in a decrease in total Weyerhaeuser shareholders' interest.

EXPECTED CONTRIBUTIONS AND BENEFIT PAYMENTS

As disclosed in our Annual Report on Form 10-K for the year ended December 31, 2011, and updated for final asset valuations and plan and participant information, we expect to:

• make approximately$87 millionof required contributions to our Canadian registered and nonregistered pension plans in 2012;

• contribute approximately$20 millionto our U.S. nonqualified pension plans in 2012; and

• make U.S. and Canadian other postretirement benefit payments of approximately$42 millionin 2012.

Congress passed legislation in June 2012 that changed the way the discount rate is computed for purposes of determining minimum pension contribution funding. Based upon this legislation, we donot expectto have a required contribution to our U.S. qualified plan, which we previously estimated to be$60 milliondue by September 2013.