PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS

9 Months Ended

Sep. 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	SEPTEMBER 2012			SEPTEMBER 2011			SEPTEMBER 2012			SEPTEMBER 2011
Service cost	$	13		$	11		$	39		$	36
Interest cost	65			68			196			207
Expected return on plan assets	(106		)	(104		)	(316		)	(315		)
Amortization of actuarial loss	44			33			131			102
Amortization of prior service cost	2			3			6			10
Loss due to curtailment and special termination benefits	—			13			—			14
Total net periodic benefit cost	$	18		$	24		$	56		$	54

	OTHER POSTRETIREMENT BENEFITS
	QUARTER ENDED						YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS	SEPTEMBER 2012			SEPTEMBER 2011			SEPTEMBER 2012			SEPTEMBER 2011
Service cost	$	—		$	1		$	1		$	2
Interest cost	4			6			11			18
Amortization of actuarial loss	3			3			10			10
Amortization of prior service credit	(6		)	(6		)	(121		)	(17		)
Other	—			—			4			4
Total net periodic benefit cost (credit)	$	1		$	4		$	(95	)	$	17

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 $103 million in year-to-date 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. The benefit related to the fourth quarter 2011 amendments was fully recognized in first and second quarter 2012.

Loss due to curtailment and special termination benefits includes charges of $11 million related to the sale of our hardwoods and Westwood Shipping Lines operations in third quarter 2011. These charges are included in our results of discontinued operations.

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 events occurring in 2012, 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 donothave a required contribution to our U.S. qualified plan, which we previously estimated to be$60 milliondue by September 2013.