SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) X OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 27, 1998 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to ______ Commission File Number 1-4825 WEYERHAEUSER COMPANY A Washington Corporation (IRS Employer Identification No. 91-0470860) Tacoma, Washington 98477 Telephone (253) 924-2345 Securities registered pursuant to Section 12(b) of the Act: Name of Each Exchange on Title of Each Class Which Registered - --------------------------------- --------------------------- Common Shares ($1.25 par value) Chicago Stock Exchange New York Stock Exchange Pacific Stock Exchange Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes _X_ No ___. Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]. As of February 26, 1999, 199,177,383 shares of the registrant's common stock ($1.25 par value) were outstanding and the aggregate market value of the registrant's voting shares held by non-affiliates was approximately $11,104,139,102. DOCUMENTS INCORPORATED BY REFERENCE Portions of the Annual Report to Shareholders for the fiscal year ended December 27, 1998 are incorporated by reference into Parts I, II and IV. Portions of the Notice of 1999 Annual Meeting of Shareholders and Proxy Statement are incorporated by reference into Part III.
Weyerhaeuser Company and Subsidiaries TABLE OF CONTENTS - ---------------------------------------------------------------------- <TABLE> <CAPTION> PART I Page ---- <S> <C> <C> Item 1. Business 3 Item 2. Properties 7 Item 3. Legal Proceedings 10 Item 4. Submission of Matters to a Vote of Security Holders 10 PART II Item 5. Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters 11 Item 6. Selected Financial Data 11 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 11 Item 8. Financial Statements and Supplementary Information 11 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 11 PART III Item 10. Directors and Executive Officers of the Registrant 12 Item 11. Executive Compensation 12 Item 12. Security Ownership of Certain Beneficial Owners and Management 12 Item 13. Certain Relationships and Related Transactions 12 PART IV Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K 13 Signatures 14 Report of Independent Public Accountants on Financial Statement Schedules 15 Schedule II Valuation and Qualifying Accounts 16 </TABLE> 2
Weyerhaeuser Company and Subsidiaries PART I - ---------------------------------------------------------------------- Item 1. Business - ----------------- Weyerhaeuser Company (the company) was incorporated in the state of Washington in January 1900 as Weyerhaeuser Timber Company. It is principally engaged in the growing and harvesting of timber and the manufacture, distribution and sale of forest products, real estate development and construction, and other real estate related activities. Its business segments are timberlands; wood products; pulp, paper and packaging; and real estate and related assets. Information with respect to the description and general development of the company's business, included on pages 38 through 42, Description of the Business of the Company, contained in the company's 1998 Annual Report to Shareholders, is incorporated herein by reference. Financial information with respect to industry segments and geographical areas, included in Notes 18 and 19 of Notes to Financial Statements contained in the company's 1998 Annual Report to Shareholders, is incorporated herein by reference. Timberlands The company is engaged in the management of 5.1 million acres of company- owned and .2 million acres of leased commercial forestland in the United States (3.3 million acres in the South and 2 million acres in the Pacific Northwest), most of it highly productive and located extremely well to serve both domestic and international markets. The standing timber inventory on these lands is approximately 94 million cunits (a cunit is 100 cubic feet of solid wood). The relationship between cubic measurement and the quantity of end products that may be produced from timber varies according to the species, size and quality of timber, and will change through time as the mix of these variables changes. To sustain the timber supply from its fee timberlands, the company is engaged in extensive planting, suppression of nonmerchantable species, precommercial and commercial thinning, fertilization and operational pruning, all of which increase the yield from its fee timberland acreage. <TABLE> <CAPTION> Inventory Thousands of Acres at December 27, 1998 --------- ------------------------------------------- Millions Fee Long-term License of Cunits Ownership Leases Arrangements Total --------- --------- --------- ------------ -------- <S> <C> <C> <C> <C> <C> Geographic Area United States West 56 1,989 -- -- 1,989 South 38 3,110 241 -- 3,351 --------- --------- --------- ------------ -------- Total United States 94 5,099 241 -- 5,340 --------- --------- --------- ------------ -------- Canada (1) Alberta 91 -- -- 7,453 7,453 British Columbia 10 32 -- 2,867 2,899 Ontario 34 1 -- 4,220 4,221 Saskatchewan 118 -- -- 12,462 12,462 --------- --------- --------- ------------ -------- Total Canada 253 33 -- 27,002 27,035 --------- --------- --------- ------------ -------- TOTAL 347 5,132 241 27,002 (2) 32,375 ========= ========= ========= ============ ======== </TABLE> <TABLE> <CAPTION> Thousands of Acres Thousands of Acres Millions of ----------------------- -------------------- Seedlings Stocking Harvested(3) Planted Planted Control Fertilization ------------ ------- ----------- -------- ------------- <S> <C> <C> <C> <C> <C> 1998 Activity West 34.2 34.8 18.0 5.3 89.2 South 63.7 55.9 33.2 2.8 271.8 ------------ ------- ----------- -------- ------------- Total United States 97.9 90.7 51.2 8.1 361.0 ============ ======= =========== ======== ============= _______________________________ (1) Managed by Canadian operations. (2) Includes approximately 18.9 million acres of productive forestland. (3) Includes 1.2 thousand acres of right-of-way and other harvest that does not require planting. 3
Weyerhaeuser Company and Subsidiaries PART I - ---------------------------------------------------------------------- Item 1. Business - Continued - ----------------------------- Sales volumes (millions): </TABLE> <TABLE> <CAPTION> 1998 1997 1996 1995 1994 ------ ------ ------ ------ ------ <S> <C> <C> <C> <C> <C> Raw materials - cubic ft. 259 235 254 254 271 </TABLE> Selected product prices: <TABLE> <CAPTION> 1998 1997 1996 1995 1994 ------ ------ ------ ------ ------ <S> <C> <C> <C> <C> <C> Export logs (#2 sawlog-bark on) - $/MBF Cascade - Douglas fir $ 807 $ 978 $1,330 $1,365 $1,168 Coastal - Hemlock 519 628 611 750 804 Coastal - Douglas fir 807 981 1,246 1,217 1,085 </TABLE> Wood Products The company's wood products businesses produce and sell softwood lumber, plywood and veneer; oriented strand board, composite and other panels; hardwood lumber; doors and treated products. These products are sold primarily through the company's own sales organizations. Building materials are sold to wholesalers, retailers and industrial users. The raw materials required to produce these products are purchased from third parties, transferred at market price from the company's timberlands, or obtained from long-term licensing arrangements covering approximately 27 million acres in Canada (of which 18.9 million acres are considered to be productive forestland). Sales volumes by major product are as follows (millions): <TABLE> <CAPTION> 1998 1997 1996 1995 1994 ------ ------ ------ ------ ------ <S> <C> <C> <C> <C> <C> Softwood lumber - board ft. 4,995 4,869 4,745 4,515 4,402 Softwood plywood and veneer - sq. ft. (3/8") 1,842 2,042 2,172 2,324 2,685 Composite panels - sq. ft. (3/4") 586 551 604 648 660 Oriented strand board - sq. ft. (3/8") 2,697 2,462 2,083 1,931 1,803 Hardwood lumber - board ft. 334 362 349 293 254 Engineered wood products - lineal ft. 164 137 116 128 71 Hardwood doors (thousands) 789 730 652 648 617 Raw materials - cubic ft. 315 325 304 260 165 </TABLE> Selected product prices: <TABLE> <CAPTION> 1998 1997 1996 1995 1994 ------ ------ ------ ------ ------ <S> <C> <C> <C> <C> <C> Lumber (common) - $/MBF 2x4 Douglas fir (kiln dried) 340 418 422 332 408 2x4 Douglas fir (green) 315 381 386 308 364 2x4 Southern yellow pine (kiln dried) 395 453 422 364 419 2x4 Spruce-pine-fir (kiln dried) 288 354 351 251 343 Plywood (1/2" CDX) - $/MSF West 279 312 307 331 334 South 295 261 256 301 298 Oriented strand board (7/16"-24/16) North Central price - $/MSF 202 142 184 245 265 </TABLE> 4
Weyerhaeuser Company and Subsidiaries PART I - ---------------------------------------------------------------------- Item 1. Business - Continued - ----------------------------- Pulp, Paper and Packaging The company's pulp, paper and packaging businesses include: Pulp, which manufactures chemical wood pulp for world markets; Paper, which manufactures and markets a range of both coated and uncoated fine papers through paper merchants and printers; Containerboard Packaging, which manufactures linerboard and corrugating medium, primarily used in the production of corrugated packaging, and manufactures and markets industrial and agricultural packaging; Paperboard, which manufactures and markets bleached paperboard, used for production of liquid containers, to West Coast and Pacific Rim customers; and Recycling, which operates an extensive wastepaper collection system and markets it to company mills and worldwide customers. Sales volumes by major product are as follows (thousands): <TABLE> <CAPTION> 1998 1997 1996 1995 1994 ------ ------ ------ ------ ------ <S> <C> <C> <C> <C> <C> Pulp - air-dry metric tons 2,012 1,982 1,868 2,060 2,068 Paper - tons (1) 1,181 1,146 1,007 1,006 998 Paperboard - tons 236 243 205 230 201 Containerboard - tons 323 389 346 259 254 Packaging - MSF 44,299 44,508 42,323 34,342 34,483 Newsprint - metric tons (2) 62 684 629 663 638 Recycling - tons 2,546 2,229 2,011 1,467 985 </TABLE> Selected product prices (per ton): <TABLE> <CAPTION> 1998 1997 1996 1995 1994 ------ ------ ------ ------ ------ <S> <C> <C> <C> <C> <C> Pulp - NBKP-air-dry metric-U.S. $ 516 $ 566 $ 579 $ 883 $ 566 Paper - uncoated free sheet-U.S. 665 740 745 946 617 Linerboard - 42 lb.-Eastern U.S. 354 326 367 505 367 Newsprint - metric-West Coast U.S. 588 550 636 662 460 Recycling - old corrugated containers 54 76 53 128 78 Recycling - old newsprint 22 15 18 99 46 </TABLE> _______________________________ (1) Reflects the acquisition of the Dryden, Ontario, fine paper mill in October 1998. (2) Reflects the ownership restructuring of the North Pacific Paper Corporation (NORPAC) newsprint facility from a fully consolidated subsidiary to an equity affiliate in February 1998. 5
Weyerhaeuser Company and Subsidiaries PART I - ---------------------------------------------------------------------- Item 1. Business - Continued - ----------------------------- Real Estate and Related Assets The company's real estate and related assets businesses are principally engaged in real estate development and construction through the company's real estate subsidiary, Weyerhaeuser Real Estate Company, and in other real estate related activities through the company's financial services subsidiary, Weyerhaeuser Financial Services, Inc. Development and construction consists of developing single-family housing and residential lots for sale, including the development of master-planned communities. Volume information: <TABLE> <CAPTION> 1998 1997 1996 1995 1994 ------- ------- ------- ------- ------- <S> <C> <C> <C> <C> <C> Units sold: Single-family units (1) 3,089 2,914 2,773 3,114 3,934 Multi-family units (1) 276 324 234 117 475 Residential lots (1) 2,455 1,988 2,522 1,628 2,157 Amounts in millions: Loan servicing portfolio (2) $ -- $ -- $ 4,354 $10,952 $11,300 Single-family loan originations (2) $ -- $ 1,168 $ 3,436 $ 2,196 $ 2,763 </TABLE> _______________________________ (1) Includes one-half of joint venture sales. (2) Reflects the sale of the company's wholly-owned subsidiary, Weyerhaeuser Mortgage Company, in the second quarter of 1997. 6
Weyerhaeuser Company and Subsidiaries PART I - ---------------------------------------------------------------------- Item 2. Properties - ------------------- Timberlands Timberlands annual log production (in millions): <TABLE> <CAPTION> 1998 1997 1996 1995 1994 ------- ------- ------- ------- ------- <S> <C> <C> <C> <C> <C> Logs - cubic ft. 495 476 412 420 392 Fee harvest - cubic ft. 585 541 496 518 525 </TABLE> Wood Products Facilities and annual production are summarized by major product as follows (millions): <TABLE> <CAPTION> Production Number of Capacity Facilities 1998 1997 1996 1995 1994 ---------- ---------- ------ ------ ------ ------ ------ <S> <C> <C> <C> <C> <C> <C> <C> Softwood lumber - board ft. 4,161 27 4,025 3,968 3,701 3,419 3,249 Softwood plywood and veneer - sq. ft. (3/8") 1,017 5 960 1,092 1,243 1,292 1,249 Composite panels - sq. ft. (3/4") 575 5 510 478 535 583 594 Oriented strand board - sq. ft. (3/8") 2,240 6 2,179 2,041 1,687 1,654 1,568 Hardwood lumber - board ft. 386 12 342 345 333 278 229 Hardwood doors (thousands) 850 1 788 740 646 643 597 Logs - cubic ft. -- -- 526 519 500 494 279 </TABLE> Principal manufacturing facilities are located as follows: <TABLE> <S> <C> Softwood lumber and plywood Hardwood lumber Alabama, Arkansas, Georgia, Arkansas, Michigan, Louisiana, Mississippi, Oklahoma, Oregon, North Carolina, Oklahoma, Oregon, Pennsylvania, Washington and Alberta, Washington and Wisconsin British Columbia, Ontario and Saskatchewan, Canada Hardwood doors Wisconsin Oriented strand board Michigan, North Carolina, West Virginia and Alberta, Canada Composite panels Georgia, North Carolina, Oregon and Wisconsin </TABLE> 7
Weyerhaeuser Company and Subsidiaries PART I - ---------------------------------------------------------------------- Item 2. Properties - Continued - ------------------------------- Pulp, Paper and Packaging Facilities and annual production are summarized by major product as follows (thousands): <TABLE> <CAPTION> Production Number of Capacity Facilities 1998 1997 1996 1995 1994 ---------- ---------- ------ ------ ------ ------ ------ <S> <C> <C> <C> <C> <C> <C> <C> Pulp - air-dry metric tons 2,255 9 1,971 2,063 2,004 2,159 2,041 Paper - tons (1) 1,594 6 1,235 1,128 1,034 1,060 982 Paperboard - tons 230 1 237 231 206 229 189 Containerboard - tons 2,600 4 2,291 2,381 2,331 2,329 2,357 Packaging - MSF 50,000 44 46,410 46,488 44,471 36,041 36,020 Newsprint - metric tons (2) -- -- 69 704 631 687 651 Recycling - tons -- 24 3,833 3,655 3,428 2,754 2,042 </TABLE> Principal manufacturing facilities are located as follows: <TABLE> <S> <C> Pulp Packaging Georgia, Mississippi, North Arizona, California, Colorado, Carolina, Washington and Alberta, Connecticut, Florida, Georgia, British Columbia, Ontario and Hawaii, Illinois, Indiana, Iowa, Saskatchewan, Canada Kentucky, Maryland, Michigan, Minnesota, Mississippi, Missouri, Paper Nebraska, New Jersey, New York, Mississippi, North Carolina, North Carolina, Ohio, Oregon, Washington, Wisconsin and Tennessee, Texas, Virginia, Ontario and Saskatchewan, Canada Washington and Wisconsin Paperboard Recycling Washington Arizona, California, Colorado, Illinois, Iowa, Kansas, Maryland, Containerboard Minnesota, Nebraska, North North Carolina, Oklahoma and Carolina, Oklahoma, Oregon, Oregon Tennessee, Texas, Utah, Virginia and Washington </TABLE> _______________________________ (1) Reflects the acquisition of the Dryden, Ontario, Canada, fine paper facility in October 1998. (2) Reflects the ownership restructuring of the North Pacific Paper Corporation (NORPAC) newsprint facility from a fully consolidated subsidiary to an equity affiliate in February 1998. 8
Weyerhaeuser Company and Subsidiaries PART I - ---------------------------------------------------------------------- Item 2. Properties - Continued - ------------------------------- Real Estate and Related Assets <TABLE> <S> <C> Single-family housing Commercial development California, Maryland, Nevada, California, Florida, Maryland Texas, Virginia and Washington and Washington Residential land development Real estate investments Arkansas, California, Florida, Arizona, California, Colorado, Georgia, Maryland, Nevada, North Nevada, Oregon and Washington Carolina, Texas, Virginia and Washington Mortgage securities California </TABLE> 9
Weyerhaeuser Company and Subsidiaries PART I - ---------------------------------------------------------------------- Item 3. Legal Proceedings - -------------------------- The company conducted a review of its 10 major pulp and paper facilities to evaluate the facilities' compliance with federal Prevention of Significant Deterioration (PSD) regulations. The results of the reviews were disclosed to seven state agencies and the Environmental Protection Agency (EPA) during 1994 and 1995. All PSD compliance issues identified in the review have been resolved, except for PSD issues at the company's Springfield, Oregon containerboard facility. A final decision is expected to be made by the Lane County Oregon Regional Air Pollution Control Authority concerning alleged PSD and permit violations at the company's Springfield, Oregon, containerboard manufacturing facility upon issuance of the facility's Title V permit in 1999. In June 1998, a lawsuit was filed against the company in Superior Court, San Francisco County, California, on behalf of a purported class of individuals and entities that own property in the United States on which exterior hardboard siding manufactured by the company has been installed since 1981. The action alleges the company manufactured and distributed defective hardboard siding, breached express warranties and consumer protection statutes and failed to disclose to consumers the alleged defective nature of its hardboard siding. The action seeks compensatory and punitive damages, costs and reasonable attorney fees. In December 1998, the complaint was amended narrowing the purported class to individuals and entities in the state of California. On February 4, 1999, the court entered an order certifying the class. The company intends to seek a review of that order. In September 1998, a lawsuit purporting to be a class action involving hardboard siding was filed against the company in Superior Court, King County, Washington. The complaint was amended, in January 1999, to allege a class consisting of individuals and entities that own homes or other structures in the United States on which exterior hardboard siding manufactured by the company at its former Klamath Falls, Oregon facility has been installed since January 1981. The amended complaint alleges the company manufactured defective hardboard siding, engaged in unfair trade practices and failed to disclose to customers the alleged defective nature of its hardboard siding. The amended complaint seeks compensatory damages, punitive or treble damages, restitution, attorney fees, costs of the suit and such other relief as may be appropriate. The company is a defendant in approximately twenty-four other hardboard siding cases, one of which purports to be a state-wide class action on behalf of purchasers of single or multi-family residences in Iowa that contain the company's hardboard siding. The company is also a party to various proceedings relating to the clean-up of hazardous waste sites under the Comprehensive Environmental Response Compensation and Liability Act, commonly known as "Superfund," and similar state laws. The EPA and/or various state agencies have notified the company that it may be a potentially responsible party with respect to other hazardous waste sites as to which no proceedings have been instituted against the company. The company is also a party to other legal proceedings and environmental matters generally incidental to its business. Although the final outcome of any legal proceeding or environmental matter is subject to a great many variables and cannot be predicted with any degree of certainty, the company presently believes that any ultimate outcome resulting from these proceedings and matters, or all of them combined, would not have a material effect on the company's current financial position, liquidity or results of operations; however, in any given future reporting period, such proceedings or matters could have a material effect on results of operations. Item 4. Submission of Matters to a Vote of Security Holders - ------------------------------------------------------------ There were no matters submitted to a vote of security holders during the fourth quarter of the fiscal year ended December 27, 1998. 10
Weyerhaeuser Company and Subsidiaries PART II - ------------------------------------------------------------------------ Item 5. Market Price of and Dividends on the Registrant's Common Equity - ------------------------------------------------------------------------ and Related Stockholder Matters - ------------------------------- Information with respect to market prices, stockholders and dividends included in Notes 20 and 21 of Notes to Financial Statements in the company's 1998 Annual Report to Shareholders, is incorporated herein by reference. Item 6. Selected Financial Data - -------------------------------- Information with respect to selected financial data included in Note 21 of Notes to Financial Statements in the company's 1998 Annual Report to Shareholders, is incorporated herein by reference. Item 7. Management's Discussion and Analysis of Financial Condition and - -------------------------------------------------------------------------- Results of Operations - --------------------- Information with respect to Management's Discussion and Analysis included on pages 2, 16-23, 30-34 and 38-49 contained in the company's 1998 Annual Report to Shareholders, is incorporated herein by reference. Item 7A. Quantitative and Qualitative Disclosures About Market Risk - --------------------------------------------------------------------- Information with respect to market risk of financial instruments included on page 48 contained in the company's 1998 Annual Report To Shareholders, is incorporated herein by reference. Item 8. Financial Statements and Supplementary Information - ----------------------------------------------------------- Financial statements and supplementary information, contained in the company's 1998 Annual Report to Shareholders are incorporated herein by reference: <TABLE> <CAPTION> Page(s) in Annual Report to Shareholders ------------------ <S> <C> Report of Independent Public Accountants 50 Consolidated Statement of Earnings 51 Consolidated Balance Sheet 52, 53 Consolidated Statement of Cash Flows 54, 55 Consolidated Statement of Shareholders' Interest 56 Notes to Financial Statements 57-73 Selected Quarterly Financial Information (Unaudited) 71 </TABLE> Item 9. Changes in and Disagreements with Accountants on Accounting and - ------------------------------------------------------------------------- Financial Disclosure - -------------------- Not applicable. 11
Weyerhaeuser Company and Subsidiaries PART III - ------------------------------------------------------------------------ Item 10. Directors and Executive Officers of the Registrant - ------------------------------------------------------------ Information with respect to Directors of the company included on pages 1 through 4 of the Notice of 1999 Annual Meeting of Shareholders and Proxy Statement dated March 8, 1999 is incorporated herein by reference. The executive officers of the company are as follows: <TABLE> <CAPTION> Name Title Age - ------------------- ------------------------ --- <S> <C> <C> William R. Corbin Executive Vice President 57 Richard C. Gozon Executive Vice President 60 Richard E. Hanson Senior Vice President 55 Steven R. Hill Senior Vice President 51 Mack L. Hogans Senior Vice President 50 Thomas M. Luthy Senior Vice President 61 Steven R. Rogel President 56 William C. Stivers Executive Vice President 60 George H. Weyerhaeuser, Jr. Senior Vice President 45 </TABLE> Item 11. Executive Compensation - -------------------------------- Information with respect to executive compensation included on pages 5 through 14 of the Notice of 1999 Annual Meeting of Shareholders and Proxy Statement dated March 8, 1999 is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management - ------------------------------------------------------------------------ Information with respect to security ownership of certain beneficial owners and management included on pages 5 and 6 of the Notice of 1999 Annual Meeting of Shareholders and Proxy Statement dated March 8, 1999 is incorporated herein by reference. Item 13. Certain Relationships and Related Transactions - -------------------------------------------------------- Not applicable. 12
Weyerhaeuser Company and Subsidiaries PART IV - -------------------------------------------------------------------------- Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K - -------------------------------------------------------------------------- Financial Statements The consolidated financial statements of the company, together with the report of independent public accountants, contained in the company's 1998 Annual Report to Shareholders, are incorporated in Part II, Item 8 of this Form 10-K by reference. <TABLE> <CAPTION> Page Number(s) Financial Statement Schedules in Form 10-K --------------- <S> <C> Report of Independent Public Accountants on Financial Statement Schedules 15 Schedule II - Valuation and Qualifying Accounts 16 </TABLE> All other financial statement schedules have been omitted because they are not applicable or the required information is included in the consolidated financial statements, or the notes thereto, contained in the company's 1998 Annual Report to Shareholders and incorporated herein by reference. Exhibits: <TABLE> <S> <C> 3 - (i) Articles of Incorporation (incorporated by reference to 1997 Form 10-K filed with the Securities and Exchange Commission on March 13, 1998 - Commission File Number 1-4825) (ii) Bylaws 10 - Material Contracts (a) Agreement with W. R. Corbin (b) Agreement with R. C. Gozon (incorporated by reference to 1995 Form 10-K filed with the Securities and Exchange Commission on March 15, 1996 - Commission File Number 1-4825) (c) Agreement with S. R. Rogel (incorporated by reference to 1997 Form 10-K filed with the Securities and Exchange Commission on March 13, 1998 - Commission File Number 1-4825) (d) Agreement with T. M. Luthy 11 - Statement Re: Computation of Per Share Earnings (incorporated by reference to Note 2 of the company's 1998 Annual Report to Shareholders) 13 - Portions of the company's 1998 Annual Report to Shareholders specifically incorporated by reference herein 22 - Subsidiaries of the Registrant 23 - Consent of Independent Public Accountants 27 - Financial Data Schedules </TABLE> Reports on Form 8-K The registrant filed reports on Form 8-K dated January 23, April 16, June 16, July 14, and October 13, 1998, and January 7 and January 21, 1999, reporting information under Item 5, Other Events. 13
Weyerhaeuser Company and Subsidiaries SIGNATURES - -------------------------------------------------------------------------- Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on March 12, 1999. Weyerhaeuser Company /s/ Steven R. Rogel -------------------------- Steven R. Rogel President Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant in the capacities indicated on March 12, 1999. /s/ Steven R. Rogel /s/ Martha R. Ingram - ---------------------------------- -------------------------- Steven R. Rogel Martha R. Ingram President, Principal Executive Director Officer and Director /s/ George H. Weyerhaeuser /s/ John Kieckhefer - ---------------------------------- -------------------------- George H. Weyerhaeuser John I. Kieckhefer Chairman of the Board and Director Director /s/ William C. Stivers /s/ Donald F. Mazankowski - ---------------------------------- -------------------------- William C. Stivers Donald F. Mazankowski Principal Financial Officer Director /s/ Kenneth J. Stancato /s/ William D. Ruckelshaus - ---------------------------------- -------------------------- Kenneth J. Stancato William D. Ruckelshaus Principal Accounting Officer Director /s/ W. John Driscoll /s/ Richard H. Sinkfield - ---------------------------------- -------------------------- W. John Driscoll Richard H. Sinkfield Director Director /s/ P. M. Hawley - ---------------------------------- -------------------------- Philip M. Hawley James N. Sullivan Director Director 14
Weyerhaeuser Company and Subsidiaries FINANCIAL STATEMENT SCHEDULES - -------------------------------------------------------------------------- Report of Independent Public Accountants on Financial Statement Schedules To Weyerhaeuser Company: We have audited in accordance with generally accepted auditing standards, the financial statements included in Weyerhaeuser Company's annual report to shareholders incorporated by reference in this Form 10-K, and have issued our report thereon dated February 10, 1999. Our audit was made for the purpose of forming an opinion on those statements taken as a whole. The schedule listed on page 13 is the responsibility of the company's management and is presented for purposes of complying with the Securities and Exchange Commission's rules and is not part of the basic financial statements. This schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, fairly states in all material respects the financial data required to be set forth therein in relation to the basic financial statements taken as a whole. ARTHUR ANDERSEN LLP Seattle, Washington, February 10, 1999 15
Weyerhaeuser Company and Subsidiaries FINANCIAL STATEMENT SCHEDULES - -------------------------------------------------------------------------- <TABLE> <CAPTION> Schedule II - Valuation and Qualifying Accounts For the three years ended December 27, 1998 Dollar amounts in millions Deductions Balance at from/ Balance at Beginning Charged Additions (to) End of Description of Period to Income Reserve Period - ----------- ---------- --------- -------------- ---------- <S> <C> <C> <C> <C> Weyerhaeuser Reserve deducted from related asset accounts: Doubtful accounts - Accounts receivable 1998 $ 6 $ 4 $ 5 $ 5 ========== ========= ============== ========== 1997 $ 7 $ 5 $ 6 $ 6 ========== ========= ============== ========== 1996 $ 9 $ 4 $ 6 $ 7 ========== ========= ============== ========== Real Estate and Related Assets Reserves and allowances deducted from related asset accounts: Receivables 1998 $ 6 $ 1 $ 1 $ 6 ========== ========= ============== ========== 1997 $ 9 $ -- $ 3 $ 6 ========== ========= ============== ========== 1996 $ 7 $ 3 $ 1 $ 9 ========== ========= ============== ========== Mortgage-related financial instruments 1998 $ 27 $ -- $ 18 (1) $ 9 ========== ========= ============== ========== 1997 $ 7 $ 13 $ (7)(2) $ 27 ========== ========= ============== ========== 1996 $ 2 $ -- $ (5)(2) $ 7 ========== ========= ============== ========== Investments in and advances to joint ventures and limited partnerships 1998 $ 6 $ 3 $ 5 $ 4 ========== ========= ============== ========== 1997 $ 27 $ -- $ 21 $ 6 ========== ========= ============== ========== 1996 $ 38 $ -- $ 11 $ 27 ========== ========= ============== ========== </TABLE> _______________________________ (1) Includes allowances transferred to other assets. (2) Includes allowances transferred in from other liabilities. 16
Weyehaeuser Company and Subsidiaries EXHIBITS INDEX - -------------------------------------------------------------------------- Exhibits: <TABLE> <S> <C> 3 - (i) Articles of Incorporation (incorporated by reference to 1997 Form 10-K filed with the Securities and Exchange Commission on March 13, 1998 - Commission File Number 1-4825) (ii) Bylaws 10 - Material Contracts (a) Agreement with W. R. Corbin (b) Agreement with R. C. Gozon (incorporated by reference to 1995 Form 10-K filed with the Securities and Exchange Commission on March 15, 1996 - Commission File Number 1-4825) (c) Agreement with S. R. Rogel (incorporated by reference to 1997 Form 10-K filed with the Securities and Exchange Commission on March 13, 1998 - Commission File Number 1-4825) (d) Agreement with T. M. Luthy 11 - Statement Re: Computation of Per Share Earnings (incorporated by reference to Note 2 of the company's 1998 Annual Report to Shareholders) 13 - Portions of the company's 1998 Annual Report to Shareholders specifically incorporated by reference herein 22 - Subsidiaries of the Registrant 23 - Consent of Independent Public Accountants 27 - Financial Data Schedules </TABLE> 17
Weyerhaeuser Company and Subsidiaries Exhibit 22 Subsidiaries of the Registrant - -------------------------------------------------------------------------- <TABLE> <CAPTION> Percentage State or Ownership of Country of Immediate Name Incorporation Parent ---- ------------- ------------- <S> <C> <C> Columbia & Cowlitz Railway Company Washington 100% DeQueen and Eastern Railroad Company Arkansas 100 Dynetherm, Inc. Alabama 100 Fisher Lumber Company California 100 Golden Triangle Railroad Mississippi 100 Green Arrow Motor Express Company Delaware 100 Gryphon Asset Management, Inc. Delaware 100 Mississippi & Skuna Valley Railroad Company Mississippi 100 Mountain Tree Farm Company Washington 50 North Pacific Paper Corporation Delaware 50 NORPAC Sales Corporation Guam 100 Norpac Resources Inc. Delaware 100 Pacific Veneer, Ltd. Washington 100 SCA Weyerhaeuser Packaging Holding British Virgin Company Asia Limited Islands 50 Texas, Oklahoma & Eastern Railroad Company Oklahoma 100 United Structures, Inc. California 100 Westwood Shipping Lines, Inc. Washington 100 Weycomp Claims Management Service, Inc. Texas 100 Weyerhaeuser Company of Nevada Nevada 100 Weyerhaeuser Construction Company Washington 100 Weyerhaeuser de Mexico, S.A. de C.V. Mexico 100 Weyerhaeuser del Bajio, S.A. de C.V. Mexico 100 Weyerhaeuser Financial Services, Inc. Delaware 100 CMO Finance Corp. Nevada 100 MJ Finance Corporation California 100 Mortgage Securities III Corporation Nevada 100 R4 Participant Corporation Nevada 100 ver Bes' Insurance Company Vermont 100 de Bes' Insurance Ltd. Bermuda 100 Weyerhaeuser Financial Investments, Inc. Nevada 100 Abfall Finance Corp. California 100 Brookview, Inc. Nevada 100 The Giddings Mortgage Investment Company California 100 Pass-Through Finance Corp. California 100 18
Weyerhaeuser Company and Subsidiaries Exhibit 22 Subsidiaries of the Registrant - Continued - -------------------------------------------------------------------------- </TABLE> <TABLE> <CAPTION> Percentage State or Ownership of Country of Immediate Name Incorporation Parent ---- ------------- ------------- <S> <C> <C> RFS Finance Corp. California 100% Trimark Development Company California 100 Trimark Realty Advisors, Inc. California 100 WFI Servicing Company Nevada 100 Woodland Hills Properties-W., Inc. Nevada 100 Weyerhaeuser Venture Company Nevada 100 Las Positas Land Co. California 100 WAMCO, Inc. Nevada 100 Weyerhaeuser Forestlands International, Inc. Washington 100 Weyerhaeuser International, Inc. Washington 100 Weyerhaeuser Canada Ltd. Canada 100 Princeton Co-Generation (VCC) Corp. Canada 90 Wapawekka Lumber Ltd. Canada 51 Weyerhaeuser (Barbados) SRL Barbados 100 Marlborough Capital Corp. SRL Barbados 100 Weyerhaeuser (BVI) Ltd. British Virgin Islands 100 Weyerhaeuser New Zealand Holdings, Inc. New Zealand 100 Nelson Forest Products Company New Zealand 100 Weyerhaeuser New Zealand, Inc. New Zealand 100 Weyerhaeuser Saskatchewan Ltd. Canada 100 Weyerhaeuser China, Ltd. Washington 100 Weyerhaeuser GMBH Germany 100 Weyerhaeuser (Asia) Limited Hong Kong 100 Weyerhaeuser Japan Ltd. Japan & Delaware 100 Weyerhaeuser Korea Ltd. Korea 100 Weyerhaeuser, S.A. Panama 100 Weyerhaeuser Taiwan Ltd. Delaware 100 Weyerhaeuser International Sales Corp. Guam 100 Weyerhaeuser (Mexico) Inc. Washington 100 Weyerhaeuser Midwest, Inc. Washington 100 Weyerhaeuser Overseas Finance Co. Delaware 100 Weyerhaeuser International Finance Company Delaware 100 Weyerhaeuser Company Nova Scotia Canada 100 Weyerhaeuser Raw Materials, Inc. Delaware 100 19
Weyerhaeuser Company and Subsidiaries Exhibit 22 Subsidiaries of the Registrant - Continued - -------------------------------------------------------------------------- </TABLE> <TABLE> <CAPTION> Percentage State or Ownership of Country of Immediate Name Incorporation Parent ---- ------------- ------------- <S> <C> <C> Weyerhaeuser Real Estate Company Washington 100% Centennial Homes, Inc. Texas 100 Midway Properties, Inc. North Carolina 100 Pardee Construction Company California 100 Marmont Realty Company California 100 Pardee Construction Company of Nevada Nevada 100 Pardee Investment Company California 100 Parvada, Inc. Nevada 100 The Quadrant Corporation Washington 100 Quadrant Real Estate Services, Inc. Washington 100 South Jersey Assets, Inc. New Jersey 100 Scarborough Constructors, Inc. Florida 100 Silverthorn Country Club, Inc. Florida 100 TMI, Inc. Texas 100 Weyerhaeuser Real Estate Company of Nevada Nevada 100 Weyerhaeuser Realty Investors, Inc. Washington 100 Winchester Homes, Inc. Delaware 100 SC-WHI, Inc. Delaware 100 Weyerhaeuser Sales Company Nevada 100 Weyerhaeuser Servicios, S.A. de C.V. Mexico 100 The Wray Company Arizona 100 </TABLE> 20
Weyerhaeuser Company and Subsidiaries Exhibit 23 Consent of Independent Public Accountants - -------------------------------------------------------------------------- As independent public accountants, we hereby consent to the incorporation of our reports included and incorporated by reference in this Form 10-K, into Weyerhaeuser Company's previously filed Registration Statement No. 333- 36753 on Form S-3 and Nos. 33-60527, 33-60529, 33-60521, 33-47392, 333- 10165, 333-01565 and 333-56673 on Form S-8. ARTHUR ANDERSEN LLP Seattle, Washington, March 12, 1999 21