Weyerhaeuser Company

WEYERHAEUSER

Annual Report and Form 10-K

2020

WEYERHAEUSER AT A GLANCE

WE WERE 
FOUNDED IN
1900

$7.5 
BILLION 
OF REVENUE
IN 2020

ONE OF THE 
LARGEST
REITs
IN THE U.S.

11 MILLION
S
ACRES OF TIMBERLANDS
owned or managed in the U.S.

35
WOOD PRODUCTS 
MANUFACTURING 
FACILITIES
across North America

14 MILLION
S
ACRES OF TIMBERLANDS
licensed in Canada

Front cover photo: Bareroot Seedling, Mima, WA Nursery. Taken by Sue Woodall, Sales Manager, Western Timberlands Regeneration Team

I feel tremendous gratitude for the resilience and determination 
of our people and what we were able to accomplish together in 2020.

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DEAR SHAREHOLDER

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RESPONDING PROACTIVELY TO COVID-19
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(cid:70)(cid:82)(cid:80)(cid:83)(cid:72)(cid:81)(cid:86)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:72)(cid:80)(cid:83)(cid:82)(cid:85)(cid:68)(cid:85)(cid:76)(cid:79)(cid:92)(cid:3)(cid:86)(cid:88)(cid:86)(cid:83)(cid:72)(cid:81)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:72)(cid:81)(cid:71)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:79)(cid:72)(cid:3)(cid:71)(cid:76)(cid:73)(cid:192)(cid:70)(cid:88)(cid:79)(cid:87)(cid:15)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:71)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:87)(cid:82) 
(cid:81)(cid:68)(cid:89)(cid:76)(cid:74)(cid:68)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:75)(cid:68)(cid:79)(cid:79)(cid:72)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:68)(cid:81)(cid:71)(cid:72)(cid:80)(cid:76)(cid:70)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:80)(cid:72)(cid:85)(cid:74)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:3)(cid:86)(cid:87)(cid:85)(cid:82)(cid:81)(cid:74)(cid:72)(cid:85)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:68)(cid:79)(cid:79)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:17)(cid:3)(cid:3)

OPERATING EFFECTIVELY
(cid:55)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:82)(cid:68)(cid:70)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:80)(cid:72)(cid:68)(cid:86)(cid:88)(cid:85)(cid:72)(cid:86)(cid:3)(cid:90)(cid:72)(cid:3)(cid:87)(cid:82)(cid:82)(cid:78)(cid:3)(cid:72)(cid:81)(cid:68)(cid:69)(cid:79)(cid:72)(cid:71)(cid:3)(cid:88)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:79)(cid:76)(cid:80)(cid:76)(cid:87)(cid:3)(cid:71)(cid:82)(cid:90)(cid:81)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:87)(cid:82)(cid:3)(cid:38)(cid:50)(cid:57)(cid:44)(cid:39)(cid:16)(cid:20)(cid:28)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:76)(cid:81)(cid:88)(cid:72)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:68)(cid:73)(cid:72)(cid:79)(cid:92)(cid:3)(cid:90)(cid:75)(cid:76)(cid:79)(cid:72)(cid:3)
(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:88)(cid:86)(cid:87)(cid:82)(cid:80)(cid:72)(cid:85)(cid:86)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:82)(cid:88)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:17)(cid:3)(cid:36)(cid:86)(cid:3)(cid:68)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:15)(cid:3)(cid:72)(cid:68)(cid:70)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:86)(cid:72)(cid:74)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:71)(cid:72)(cid:79)(cid:76)(cid:89)(cid:72)(cid:85)(cid:72)(cid:71)(cid:3)(cid:86)(cid:87)(cid:85)(cid:82)(cid:81)(cid:74)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:76)(cid:81)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)(cid:3)
(cid:71)(cid:72)(cid:86)(cid:83)(cid:76)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:192)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:70)(cid:75)(cid:68)(cid:79)(cid:79)(cid:72)(cid:81)(cid:74)(cid:72)(cid:86)(cid:17)(cid:3)(cid:41)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:88)(cid:79)(cid:79)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:72)(cid:68)(cid:85)(cid:81)(cid:72)(cid:71)(cid:3)(cid:7)(cid:26)(cid:28)(cid:26)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:82)(cid:85)(cid:3)(cid:7)(cid:28)(cid:25)(cid:21)(cid:3)(cid:80)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:3)
(cid:69)(cid:72)(cid:73)(cid:82)(cid:85)(cid:72)(cid:3)(cid:86)(cid:83)(cid:72)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:76)(cid:87)(cid:72)(cid:80)(cid:86)(cid:17)(cid:3)(cid:36)(cid:71)(cid:77)(cid:88)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:40)(cid:37)(cid:44)(cid:55)(cid:39)(cid:36)*(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:90)(cid:68)(cid:86)(cid:3)(cid:7)(cid:21)(cid:17)(cid:21)(cid:3)(cid:69)(cid:76)(cid:79)(cid:79)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:72)(cid:86)(cid:87)(cid:3)(cid:83)(cid:72)(cid:85)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:76)(cid:81)(cid:3)(cid:20)(cid:24)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:86)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:88)(cid:79)(cid:87)(cid:86)(cid:3)(cid:90)(cid:82)(cid:88)(cid:79)(cid:71)(cid:3)
(cid:69)(cid:72)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:72)(cid:81)(cid:89)(cid:76)(cid:85)(cid:82)(cid:81)(cid:80)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:72)(cid:91)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:85)(cid:82)(cid:68)(cid:71)(cid:72)(cid:85)(cid:3)(cid:72)(cid:70)(cid:82)(cid:81)(cid:82)(cid:80)(cid:76)(cid:70)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:82)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:70)(cid:75)(cid:68)(cid:79)(cid:79)(cid:72)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:92)(cid:3)(cid:68)(cid:85)(cid:72) 
(cid:68)(cid:3)(cid:83)(cid:82)(cid:90)(cid:72)(cid:85)(cid:73)(cid:88)(cid:79)(cid:3)(cid:87)(cid:72)(cid:86)(cid:87)(cid:68)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:72)(cid:85)(cid:86)(cid:72)(cid:89)(cid:72)(cid:85)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:83)(cid:72)(cid:82)(cid:83)(cid:79)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:87)(cid:85)(cid:72)(cid:81)(cid:74)(cid:87)(cid:75)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:72)(cid:86)(cid:17)(cid:3)

RETURNED
(cid:48)(cid:50)(cid:53)(cid:40)(cid:3)(cid:55)(cid:43)(cid:36)(cid:49)
$380 MILLION
(cid:44)(cid:49)(cid:3)(cid:39)(cid:44)(cid:57)(cid:44)(cid:39)(cid:40)(cid:49)(cid:39)(cid:54)(cid:3)(cid:55)(cid:50)(cid:3)(cid:50)(cid:56)(cid:53)
SHAREHOLDERS
(cid:44)(cid:49)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)

ACHIEVED 
NET EARNINGS
(cid:50)(cid:41) 
$797
MILLION
(cid:44)(cid:49)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)

BEST ADJUSTED
EBITDA*
(cid:44)(cid:49)(cid:3)(cid:20)(cid:24)(cid:3)(cid:60)(cid:40)(cid:36)(cid:53)(cid:54)
$2.2
BILLION

(cid:44)(cid:49)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)

OPERATING SAFELY
(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:75)(cid:68)(cid:79)(cid:79)(cid:72)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:38)(cid:50)(cid:57)(cid:44)(cid:39)(cid:16)(cid:20)(cid:28)(cid:3)(cid:68)(cid:73)(cid:192)(cid:85)(cid:80)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)
(cid:76)(cid:80)(cid:83)(cid:82)(cid:85)(cid:87)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:72)(cid:80)(cid:83)(cid:75)(cid:68)(cid:86)(cid:76)(cid:93)(cid:76)(cid:81)(cid:74)(cid:3)(cid:86)(cid:68)(cid:73)(cid:72)(cid:87)(cid:92)(cid:3)(cid:68)(cid:86)(cid:3)(cid:68)(cid:3)(cid:70)(cid:82)(cid:85)(cid:72)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)
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SERVING OUR CUSTOMERS
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ENHANCING OUR PORTFOLIO
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PURSUING OPERATIONAL EXCELLENCE (OPX)
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(cid:85)(cid:72)(cid:79)(cid:72)(cid:81)(cid:87)(cid:79)(cid:72)(cid:86)(cid:86)(cid:3)(cid:73)(cid:82)(cid:70)(cid:88)(cid:86)(cid:3)(cid:82)(cid:81)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:79)(cid:79)(cid:72)(cid:81)(cid:70)(cid:72)(cid:17)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:73)(cid:82)(cid:85)(cid:80)(cid:88)(cid:79)(cid:68)(cid:3)(cid:76)(cid:86)(cid:3)(cid:86)(cid:76)(cid:80)(cid:83)(cid:79)(cid:72)(cid:29)(cid:3)
(cid:38)(cid:85)(cid:72)(cid:68)(cid:87)(cid:72)(cid:3)(cid:89)(cid:68)(cid:79)(cid:88)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:3)(cid:87)(cid:75)(cid:85)(cid:82)(cid:88)(cid:74)(cid:75)(cid:3)(cid:86)(cid:88)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
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(cid:71)(cid:72)(cid:68)(cid:79)(cid:76)(cid:81)(cid:74)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:76)(cid:80)(cid:83)(cid:68)(cid:70)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:38)(cid:50)(cid:57)(cid:44)(cid:39)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:72)(cid:91)(cid:87)(cid:72)(cid:85)(cid:81)(cid:68)(cid:79)(cid:3)(cid:73)(cid:68)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:17) 
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(cid:82)(cid:73)(cid:3)(cid:50)(cid:83)(cid:59)(cid:3)(cid:76)(cid:80)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:79)(cid:68)(cid:86)(cid:87)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:15)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:192)(cid:70)(cid:68)(cid:81)(cid:87)(cid:79)(cid:92)(cid:3)(cid:72)(cid:91)(cid:70)(cid:72)(cid:72)(cid:71)(cid:76)(cid:81)(cid:74)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:3)
(cid:87)(cid:68)(cid:85)(cid:74)(cid:72)(cid:87)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:90)(cid:72)(cid:3)(cid:68)(cid:70)(cid:75)(cid:76)(cid:72)(cid:89)(cid:72)(cid:71)(cid:3)(cid:85)(cid:72)(cid:70)(cid:82)(cid:85)(cid:71)(cid:16)(cid:79)(cid:82)(cid:90)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:80)(cid:68)(cid:81)(cid:88)(cid:73)(cid:68)(cid:70)(cid:87)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:70)(cid:82)(cid:86)(cid:87)(cid:86)(cid:3)
(cid:76)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:79)(cid:88)(cid:80)(cid:69)(cid:72)(cid:85)(cid:3)(cid:82)(cid:83)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:17)(cid:3)(cid:36)(cid:3)(cid:78)(cid:72)(cid:92)(cid:3)(cid:71)(cid:85)(cid:76)(cid:89)(cid:72)(cid:85)(cid:3)(cid:69)(cid:72)(cid:75)(cid:76)(cid:81)(cid:71)(cid:3)(cid:50)(cid:83)(cid:59)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:70)(cid:75)(cid:76)(cid:72)(cid:89)(cid:76)(cid:81)(cid:74) 
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(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:72)(cid:71)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:192)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:72)(cid:81)(cid:72)(cid:85)(cid:74)(cid:92)(cid:3)(cid:76)(cid:81)(cid:3)(cid:76)(cid:81)(cid:81)(cid:82)(cid:89)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:68)(cid:86)(cid:87)(cid:3)(cid:73)(cid:72)(cid:90)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:86)(cid:15)(cid:3)
(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:70)(cid:70)(cid:72)(cid:79)(cid:72)(cid:85)(cid:68)(cid:87)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:76)(cid:81)(cid:88)(cid:72)(cid:71)(cid:3)(cid:76)(cid:80)(cid:83)(cid:85)(cid:82)(cid:89)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3)(cid:68)(cid:70)(cid:85)(cid:82)(cid:86)(cid:86) 
(cid:82)(cid:88)(cid:85)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:72)(cid:86)(cid:17)

(cid:53)(cid:40)(cid:39)(cid:56)(cid:38)(cid:40)(cid:39)
EMPLOYEE
SERIOUS
INJURIES
BY 60%

(cid:38)(cid:50)(cid:48)(cid:51)(cid:36)(cid:53)(cid:40)(cid:39)(cid:3)(cid:58)(cid:44)(cid:55)(cid:43)(cid:3)(cid:21)(cid:19)(cid:20)(cid:28)

(cid:54)(cid:55)(cid:53)(cid:36)(cid:55)(cid:40)(cid:42)(cid:44)(cid:38)(cid:36)(cid:47)(cid:47)(cid:60)
UPGRADED
(cid:50)(cid:56)(cid:53)(cid:3)(cid:50)(cid:53)(cid:40)(cid:42)(cid:50)(cid:49)
TIMBERLAND
HOLDINGS

(cid:53)(cid:40)(cid:38)(cid:50)(cid:53)(cid:39)(cid:16)(cid:43)(cid:44)(cid:42)(cid:43)
WOOD PRODUCTS
ADJUSTED EBITDA*
$1.5 BILLION

(cid:38)(cid:36)(cid:51)(cid:55)(cid:56)(cid:53)(cid:40)(cid:39)(cid:3)(cid:48)(cid:50)(cid:53)(cid:40)(cid:3)(cid:55)(cid:43)(cid:36)(cid:49)
$100 MILLION
IN OPX IMPROVEMENTS
(cid:44)(cid:49)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)

(cid:47)(cid:36)(cid:56)(cid:49)(cid:38)(cid:43)(cid:40)(cid:39)(cid:3)(cid:36)(cid:3)(cid:49)(cid:40)(cid:58) 
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(cid:48)(cid:50)(cid:53)(cid:40)(cid:3)(cid:55)(cid:43)(cid:36)(cid:49)
1,600
EMPLOYEES
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UNCONSCIOUS BIAS
TRAINING

(cid:51)(cid:53)(cid:50)(cid:57)(cid:44)(cid:39)(cid:40)(cid:39)
$5.3 MILLION
IN CHARITABLE GRANTS, 
IN-KIND DONATIONS 
AND SPONSORSHIPS
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EMPLOYEES
VOLUNTEERING
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13,000 HOURS

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ADVANCING OUR SUSTAINABILITY LEADERSHIP
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PROMOTING DIVERSITY, EQUITY AND INCLUSION 
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(cid:68)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:17)(cid:3)

SUPPORTING OUR COMMUNITIES
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(cid:70)(cid:75)(cid:68)(cid:79)(cid:79)(cid:72)(cid:81)(cid:74)(cid:76)(cid:81)(cid:74)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:17)

*Represents a measure of performance that is calculated and presented other than in accordance with 
GAAP. For an explanation of this non-GAAP measure, a full reconciliation of this measure of our results 
to our GAAP Net Earnings results and a brief discussion of why we use this non-GAAP performance 
measure, see Part II, Item 7 (Management’s Discussion and Analysis of Financial Condition and Results 
of Operations) of our Annual Report on Form 10-K for the year ended December 31, 2020, which is 
included in and forms a part of this Annual Report.

DRIVING SHAREHOLDER VALUE
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(cid:86)(cid:87)(cid:85)(cid:82)(cid:81)(cid:74)(cid:3)(cid:192)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:68)(cid:3)(cid:79)(cid:72)(cid:89)(cid:72)(cid:79)(cid:3)(cid:82)(cid:73)(cid:3)(cid:71)(cid:72)(cid:69)(cid:87)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:83)(cid:85)(cid:76)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
(cid:86)(cid:88)(cid:86)(cid:87)(cid:68)(cid:76)(cid:81)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:88)(cid:86)(cid:76)(cid:81)(cid:72)(cid:86)(cid:86)(cid:3)(cid:70)(cid:92)(cid:70)(cid:79)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:86) 
(cid:82)(cid:88)(cid:85)(cid:3)(cid:86)(cid:82)(cid:79)(cid:76)(cid:71)(cid:3)(cid:76)(cid:81)(cid:89)(cid:72)(cid:86)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:74)(cid:85)(cid:68)(cid:71)(cid:72)(cid:3)(cid:70)(cid:85)(cid:72)(cid:71)(cid:76)(cid:87)(cid:3)(cid:83)(cid:85)(cid:82)(cid:192)(cid:79)(cid:72)(cid:17)(cid:3)(cid:44)(cid:81)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:88)(cid:85)(cid:87)(cid:75)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:15) 
(cid:90)(cid:72)(cid:3)(cid:85)(cid:72)(cid:76)(cid:81)(cid:76)(cid:87)(cid:76)(cid:68)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:72)(cid:81)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:76)(cid:80)(cid:83)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:72)(cid:71)(cid:3)(cid:68)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:72)(cid:81)(cid:71)(cid:3)
(cid:73)(cid:85)(cid:68)(cid:80)(cid:72)(cid:90)(cid:82)(cid:85)(cid:78)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:73)(cid:85)(cid:68)(cid:80)(cid:72)(cid:90)(cid:82)(cid:85)(cid:78)(cid:3)(cid:70)(cid:82)(cid:81)(cid:86)(cid:76)(cid:86)(cid:87)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:3)(cid:86)(cid:88)(cid:86)(cid:87)(cid:68)(cid:76)(cid:81)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:84)(cid:88)(cid:68)(cid:85)(cid:87)(cid:72)(cid:85)(cid:79)(cid:92)(cid:3)
(cid:69)(cid:68)(cid:86)(cid:72)(cid:3)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:72)(cid:81)(cid:71)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:3)(cid:89)(cid:68)(cid:85)(cid:76)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:79)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:68)(cid:79)(cid:3)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:72)(cid:81)(cid:71)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:70)(cid:75)(cid:3)(cid:90)(cid:72) 
(cid:72)(cid:91)(cid:83)(cid:72)(cid:70)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:83)(cid:68)(cid:92)(cid:3)(cid:68)(cid:81)(cid:81)(cid:88)(cid:68)(cid:79)(cid:79)(cid:92)(cid:3)(cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3)(cid:82)(cid:81)(cid:3)(cid:83)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:193)(cid:82)(cid:90)(cid:86)(cid:17)(cid:3)(cid:42)(cid:82)(cid:76)(cid:81)(cid:74)(cid:3)(cid:73)(cid:82)(cid:85)(cid:90)(cid:68)(cid:85)(cid:71)(cid:15) 
(cid:82)(cid:88)(cid:85)(cid:3)(cid:81)(cid:72)(cid:90)(cid:3)(cid:71)(cid:76)(cid:89)(cid:76)(cid:71)(cid:72)(cid:81)(cid:71)(cid:3)(cid:73)(cid:85)(cid:68)(cid:80)(cid:72)(cid:90)(cid:82)(cid:85)(cid:78)(cid:3)(cid:90)(cid:76)(cid:79)(cid:79)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:76)(cid:81)(cid:74)(cid:3)
(cid:68)(cid:3)(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:192)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3)(cid:83)(cid:82)(cid:85)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:73)(cid:85)(cid:72)(cid:72)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:193)(cid:82)(cid:90)(cid:3)(cid:87)(cid:82)(cid:3)(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:86)(cid:15)(cid:3)(cid:90)(cid:75)(cid:76)(cid:79)(cid:72)(cid:3)(cid:72)(cid:81)(cid:86)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)
(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:70)(cid:68)(cid:86)(cid:75)(cid:3)(cid:76)(cid:86)(cid:3)(cid:86)(cid:88)(cid:86)(cid:87)(cid:68)(cid:76)(cid:81)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:83)(cid:85)(cid:76)(cid:68)(cid:87)(cid:72)(cid:3)(cid:68)(cid:70)(cid:85)(cid:82)(cid:86)(cid:86) 
(cid:80)(cid:68)(cid:85)(cid:78)(cid:72)(cid:87)(cid:3)(cid:70)(cid:92)(cid:70)(cid:79)(cid:72)(cid:86)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:86)(cid:72)(cid:3)(cid:68)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:75)(cid:68)(cid:89)(cid:72)(cid:3)(cid:83)(cid:82)(cid:86)(cid:76)(cid:87)(cid:76)(cid:82)(cid:81)(cid:72)(cid:71)(cid:3)(cid:88)(cid:86)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:85)(cid:72)(cid:68)(cid:87)(cid:72)(cid:3)(cid:86)(cid:88)(cid:83)(cid:72)(cid:85)(cid:76)(cid:82)(cid:85)(cid:3)
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(cid:86)(cid:75)(cid:68)(cid:85)(cid:72)(cid:75)(cid:82)(cid:79)(cid:71)(cid:72)(cid:85)(cid:3)(cid:85)(cid:72)(cid:87)(cid:88)(cid:85)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:89)(cid:72)(cid:85)(cid:3)(cid:20)(cid:22)(cid:3)(cid:83)(cid:72)(cid:85)(cid:70)(cid:72)(cid:81)(cid:87)(cid:3)(cid:71)(cid:72)(cid:86)(cid:83)(cid:76)(cid:87)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:75)(cid:68)(cid:79)(cid:79)(cid:72)(cid:81)(cid:74)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
(cid:71)(cid:76)(cid:86)(cid:85)(cid:88)(cid:83)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)(cid:17)

LOOKING AHEAD
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(cid:70)(cid:68)(cid:83)(cid:76)(cid:87)(cid:68)(cid:79)(cid:3)(cid:68)(cid:79)(cid:79)(cid:82)(cid:70)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:83)(cid:83)(cid:85)(cid:82)(cid:68)(cid:70)(cid:75)(cid:15)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:79)(cid:82)(cid:81)(cid:74)(cid:3)(cid:75)(cid:76)(cid:86)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3)(cid:82)(cid:73)(cid:3)(cid:86)(cid:88)(cid:86)(cid:87)(cid:68)(cid:76)(cid:81)(cid:68)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)
(cid:79)(cid:72)(cid:68)(cid:71)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:87)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:71)(cid:82)(cid:88)(cid:86)(cid:3)(cid:72)(cid:91)(cid:83)(cid:72)(cid:85)(cid:87)(cid:76)(cid:86)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:70)(cid:82)(cid:80)(cid:80)(cid:76)(cid:87)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)
(cid:83)(cid:72)(cid:82)(cid:83)(cid:79)(cid:72)(cid:15)(cid:3)(cid:44)(cid:3)(cid:68)(cid:80)(cid:3)(cid:70)(cid:82)(cid:81)(cid:89)(cid:76)(cid:81)(cid:70)(cid:72)(cid:71)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:72)(cid:86)(cid:87)(cid:3)(cid:76)(cid:86)(cid:3)(cid:92)(cid:72)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:58)(cid:72)(cid:92)(cid:72)(cid:85)(cid:75)(cid:68)(cid:72)(cid:88)(cid:86)(cid:72)(cid:85)(cid:17)

(cid:55)(cid:75)(cid:68)(cid:81)(cid:78)(cid:3)(cid:92)(cid:82)(cid:88)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:92)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:90)(cid:81)(cid:72)(cid:85)(cid:86)(cid:75)(cid:76)(cid:83)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:86)(cid:88)(cid:83)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:68)(cid:86)(cid:3)(cid:90)(cid:72)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:76)(cid:81)(cid:88)(cid:72)(cid:3)(cid:90)(cid:82)(cid:85)(cid:78)(cid:76)(cid:81)(cid:74)(cid:3)
(cid:87)(cid:82)(cid:74)(cid:72)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3)(cid:87)(cid:82)(cid:3)(cid:69)(cid:72)(cid:70)(cid:82)(cid:80)(cid:72)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:90)(cid:82)(cid:85)(cid:79)(cid:71)(cid:183)(cid:86)(cid:3)(cid:83)(cid:85)(cid:72)(cid:80)(cid:76)(cid:72)(cid:85)(cid:3)(cid:87)(cid:76)(cid:80)(cid:69)(cid:72)(cid:85)(cid:15)(cid:3)(cid:79)(cid:68)(cid:81)(cid:71)(cid:15)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:72)(cid:86)(cid:87)(cid:3)
(cid:83)(cid:85)(cid:82)(cid:71)(cid:88)(cid:70)(cid:87)(cid:86)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:17)

(cid:39)(cid:72)(cid:89)(cid:76)(cid:81)(cid:3)(cid:58)(cid:17)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:192)(cid:86)(cid:75) 
(cid:39)(cid:72)(cid:89)(cid:76)(cid:81) (cid:58) (cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:192)(cid:86)(cid:75)
(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:9)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)

(cid:53)(cid:40)(cid:39)(cid:56)(cid:38)(cid:40)(cid:39)
GROSS DEBT
(cid:37)(cid:60)(cid:3)(cid:48)(cid:50)(cid:53)(cid:40)(cid:3)(cid:55)(cid:43)(cid:36)(cid:49)
$900 MILLION

(cid:44)(cid:49)(cid:3)(cid:21)(cid:19)(cid:21)(cid:19)

(cid:44)(cid:49)(cid:57)(cid:40)(cid:54)(cid:55)(cid:40)(cid:39)
$280 MILLION
TO MAINTAIN
AND ENHANCE
OUR OPERATING
PERFORMANCE

(cid:36)(cid:49)(cid:49)(cid:50)(cid:56)(cid:49)(cid:38)(cid:40)(cid:39)(cid:3)(cid:49)(cid:40)(cid:58)
DIVIDEND
FRAMEWORK
(cid:58)(cid:44)(cid:55)(cid:43)
SUSTAINABLE 
QUARTERLY BASE 
DIVIDEND
(cid:36)(cid:49)(cid:39)
VARIABLE 
SUPPLEMENTAL 
DIVIDEND

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020
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
91-0470860
(IRS EMPLOYER IDENTIFICATION NO.)

220 OCCIDENTAL AVENUE SOUTH, SEATTLE, WASHINGTON 98104-7800 TELEPHONE (206) 539-3000

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

TITLE OF EACH CLASS
Common Shares ($1.25 par value)

TRADING SYMBOL(S)
WY

NAME OF EACH EXCHANGE
ON WHICH REGISTERED
New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. È Yes ‘ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. ‘ Yes È No

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. È Yes ‘ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit such files). È Yes ‘ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller
reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller
reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer È Accelerated filer ‘ Non-accelerated filer ‘ Smaller reporting company ‘ Emerging growth
company ‘

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ‘

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the
effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by
the registered public accounting firm that prepared or issued its audit report. È
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). ‘ Yes È No

The aggregate market value of the registrant’s common stock held by non-affiliates of the registrant based on the closing sale
price as of the last business day of the most recently completed second fiscal quarter ended on June 30, 2020, as reported on
the New York Stock Exchange Composite Price Transactions, was approximately $16.8 billion.

As of February 8, 2021, 747,768 thousand shares of the registrant’s common stock ($1.25 par value) were outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Notice of the 2021 Annual Meeting of Shareholders and Proxy Statement for the company’s Annual Meeting of
Shareholders to be held May 14, 2021, are incorporated by reference into Part III.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

TABLE OF CONTENTS

PART I
ITEM 1.

OUR BUSINESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WE CAN TELL YOU MORE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WHO WE ARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
WHAT WE DO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
INFORMATION ABOUT OUR EXECUTIVE OFFICERS . . . . . . . . . . . .
NATURAL RESOURCE AND ENVIRONMENTAL MATTERS . . . . . . .
FORWARD-LOOKING STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 1A. RISK FACTORS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 1B. UNRESOLVED STAFF COMMENTS . . . . . . . . . . . . . . . . . . . . . . .
PROPERTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 2.
ITEM 3.
LEGAL PROCEEDINGS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 4. MINE SAFETY DISCLOSURES — NOT APPLICABLE . . . . . . . . . .

PAGE
1
1
1
4
15
16
21
22
33
33
33

PART II
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED

STOCKHOLDER MATTERS AND ISSUER PURCHASES OF
EQUITY SECURITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
SELECTED FINANCIAL DATA — NOT APPLICABLE . . . . . . . . . .

ITEM 6.
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL

CONDITION AND RESULTS OF OPERATIONS (MD&A) . . . . . . . .
ECONOMIC AND MARKET CONDITIONS AFFECTING OUR
OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FINANCIAL PERFORMANCE SUMMARY . . . . . . . . . . . . . . . . . . . . .
RESULTS OF OPERATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
LIQUIDITY AND CAPITAL RESOURCES . . . . . . . . . . . . . . . . . . . . .
OFF-BALANCE SHEET ARRANGEMENTS . . . . . . . . . . . . . . . . . . . .
ENVIRONMENTAL MATTERS, LEGAL PROCEEDINGS AND OTHER
CONTINGENCIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ACCOUNTING MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PERFORMANCE MEASURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

33

35

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44

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT

MARKET RISK . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48

ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA . . . . .
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING
FIRM . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CONSOLIDATED STATEMENT OF OPERATIONS . . . . . . . . . . . . . .
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME . . . .
CONSOLIDATED BALANCE SHEET . . . . . . . . . . . . . . . . . . . . . . . .
CONSOLIDATED STATEMENT OF CASH FLOWS . . . . . . . . . . . . . .
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY . . . . . . . .
INDEX FOR NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS . . . . . . . . .
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE — NOT
APPLICABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 9A. CONTROLS AND PROCEDURES . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 9B. OTHER INFORMATION — NOT APPLICABLE . . . . . . . . . . . . . . .

ITEM 9.

PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE

GOVERNANCE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 11. EXECUTIVE AND DIRECTOR COMPENSATION . . . . . . . . . . . . . .
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS

AND MANAGEMENT AND RELATED STOCKHOLDER
MATTERS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

AND DIRECTOR INDEPENDENCE . . . . . . . . . . . . . . . . . . . . . . . .
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES . . . . . . . . . . . .

PART IV
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES . . . . . . . .
EXHIBITS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
FORM 10-K SUMMARY — NOT APPLICABLE . . . . . . . . . . . . . . .
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ITEM 16.

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OUR BUSINESS
We are one of the world’s largest private owners of
timberlands. We own or control 10.7 million acres of
timberlands in the U.S. and manage an additional 14.1 million
acres of timberlands under long-term licenses in Canada. We
manage these timberlands on a sustainable basis in
compliance with internationally recognized forestry standards.
Our objective is to maximize the long-term value of timberlands
we own. We analyze each timberland acre comprehensively to
understand its highest-value use. We realize this value in many
ways, most notably through growing and harvesting the trees,
but also by selling properties when we can create incremental
value. In addition, we focus on opportunities to realize value
through lease and royalty agreements for the surface and
subsurface rights that exist in our ownership.

We are also one of the largest manufacturers of wood products
in North America. We manufacture and distribute high-quality
wood products, including structural lumber, oriented strand
board, engineered wood products and other specialty products.
These products are primarily supplied to the residential, multi-
family, industrial, light commercial as well as repair and
remodel markets. We operate 35 manufacturing facilities in the
United States and Canada.

Sustainability and citizenship are part of our core values. In
addition to practicing sustainable forestry, we focus on
increasing energy and resource efficiency, reducing greenhouse
gas emissions, conserving natural resources and offering
sustainable products that meet our customers’ needs. We
operate with world-class safety results, actively support the
communities in which we operate and strive to communicate
transparently with our investors and other stakeholders. We are
one of only two North American forest products companies
included on the Dow Jones Sustainability North America Index,
and we are also recognized for our leading performance in the
areas of ethics, citizenship and gender equality.

This portion of our Annual Report on Form 10-K provides
detailed information about who we are and what we do. Unless
otherwise specified, current information reported in this Form
10-K is as of or for the fiscal year ended December 31, 2020.
Throughout this Form 10-K, unless specified otherwise,
references to “we,” “our,” “us” and “the company” refer to the
consolidated company. We break out financial information such

as revenues, earnings and assets by the business segments
that comprise our company. We also discuss the geographic
areas where we do business.

WE CAN TELL YOU MORE

AVAILABLE INFORMATION

We meet the information reporting requirements of the
Securities Exchange Act of 1934 by filing periodic reports
(annual reports on Form 10-K, quarterly reports on Form 10-Q),
current reports on Form 8-K, proxy statements and other
information with the Securities and Exchange Commission
(SEC). These reports and statements, which contain
information about our company’s business, financial results,
corporate governance and other matters, as well as
amendments to these reports and statements, are available at:

•the SEC website — www.sec.gov and
•our website (free of charge) — www.weyerhaeuser.com.
When we file or furnish information electronically with the SEC,
it is also posted to our website.

WHO WE ARE

We were incorporated as Weyerhaeuser Timber Company in the
state of Washington in January 1900, when Frederick
Weyerhaeuser and 15 partners bought 900,000 acres of
timberland. Today, we are working to be the world’s premier
timber, land and forest products company for our shareholders,
customers and employees.

REAL ESTATE INVESTMENT TRUST (REIT)

Our company is a REIT and REIT income can be distributed to
shareholders without first paying corporate level tax,
substantially eliminating the double taxation on income. We
expect to derive most of our REIT income from our timberlands,
including gains from the sales of our standing timber and rent
from recreational leases. We continue to be required to pay
federal corporate income taxes on earnings of our Taxable REIT
Subsidiaries (TRSs), which include our Wood Products segment
and a portion of our Timberlands and Real Estate, Energy and
Natural Resources segments.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

1

OUR BUSINESS SEGMENTS

In our Management’s Discussion and Analysis of Financial
Condition and Results of Operations (MD&A) section you will
find discussion of our overall performance results for our
business segments, which are as follows:

•Timberlands;
•Real Estate, Energy and Natural Resources (Real Estate &

ENR) and

•Wood Products.
Detailed financial information about our business segments
and our geographic locations is provided in Note 2: Business
Segments and Note 21: Geographic Areas.

EFFECT OF MARKET CONDITIONS

The health of the U.S. housing market strongly affects the
performance of all our business segments. Wood Products
primarily sells into the new residential building and repair and
remodel markets. Demand for sawlogs within our Timberlands
segment is directly affected by domestic production of wood-
based building products as well as export markets. Seasonal
weather patterns impact the level of construction activity in the
U.S., generally characterized by a reduction in activity during the
winter months, which in turn affects the demand for our logs
and wood products. Real Estate is affected by the health of the
U.S. economy and the local real estate market conditions, such
as the level of supply or demand for properties sharing the
same or similar characteristics as our timberlands. Energy and
Natural Resources is affected by underlying demand for
commodities, including oil, natural gas and minerals.

COMPETITION IN OUR MARKETS

We operate in highly competitive domestic and foreign markets,
with numerous companies selling similar products. Many of our
products also face competition from substitutes for wood
products. We compete in our markets primarily through product
quality, service levels and price. We are relentlessly focused on
operational excellence, producing quality products customers
want and are willing to pay for, at the lowest possible cost.

Our business segments’ competitive strategies are as follows:

•Timberlands — Deliver maximum timber value from every

acre we own or manage.

•Real Estate & ENR — Deliver premiums to timberland value

by identifying and monetizing higher and better use lands and
capturing the full value of surface and subsurface assets.
•Wood Products — Manufacture high-quality structural lumber,
oriented strand board and engineered wood products, as well
as deliver complementary building products for residential,

2

multi-family, industrial and light commercial applications at
competitive costs.

HUMAN CAPITAL AND TALENT MANAGEMENT

Our human capital and talent management practices strive to
attract and retain diverse and talented people. Since we
depend so much on our people, we focus on ensuring that we
create and maintain a safe and inclusive work environment in
which our employees have opportunities to develop and reach
their potential.

OUR PEOPLE BY THE NUMBERS

As of December 31, 2020, we employed 9,372 employees,
including 7,971 in the United States, 1,389 in Canada, and 12
in Japan. Of these employees, 2,421 are members of unions
covered by multi-year collective-bargaining agreements.

Our employees by business segment were as follows:

SEGMENT

Timberlands

Real Estate & ENR

Wood Products

Corporate

Total

SAFETY

NUMBER OF
EMPLOYEES

1,289

67

7,220

796

9,372

Our highest priority is the safety of our employees, contractors
and all others who come into contact with our daily operations.
Our industry-leading safety results are driven by:

•caring leadership with a safety-focused “tone at the top”;
•robust safety policies and practices;
•engaged employees with regular safety training and

education and

•a strong company-wide focus on identifying and reducing

hazards and risks.

We regularly review safety incidents, risk-identification reports
and “near-miss” incidents and apply key learnings across our
organization. Our efforts have resulted in a significant and
sustained reduction in the number and severity of recordable
injuries. This includes a drop in our Recordable Incident Rate,
which is the number of Occupational Safety and Health
Administration-defined recordable injuries/illnesses that occur
in 100 workers working in one year, from 10 in 1990 to 1.56 in
2020. We remain relentlessly focused on achieving our goal of
creating an injury-free workplace.

In 2020, our continued focus on workplace safety enabled us
to quickly implement additional protocols to safeguard the
health of our employees and preserve business continuity
during the COVID-19 pandemic.

PEOPLE DEVELOPMENT

We focus a great deal of energy and resources on the training
and development of our people. We also connect key human
capital management priorities, such as succession planning,
leadership development and critical role placement, with our
executive compensation programs by including these and
related priorities in our senior executives’ annual cash bonus
plan goals. To support our people development objectives we:

•partner with our employees on individual development plans
and provide a wide range of individual development tools;
•annually enroll hundreds of our front-line, mid-level and future

executive leaders in development programs;

•engage in rigorous internal talent assessment and

succession planning and

•monitor and regularly review our strategies and action plans
to address any workforce gaps in our organization, including
gender, race and other underrepresented groups.

We also believe in the 70-20-10 approach to professional
growth. This model acknowledges that at least 70 percent of
development occurs on the job through direct experience and
skill-building. Another 20 percent comes from focused
relationship-building and exposure to projects, processes and
perspective outside one’s normal expertise. The final
10 percent is focused on targeted training courses and
development programs that help our employees achieve their
own specific career goals. In 2020, our employees logged
31,415 hours of training in our online learning management
system, which tracks both virtual and classroom courses
delivered. In addition, we offer three classroom-based
leadership development programs that focus on helping current
and future leaders build these skills. We typically enroll
hundreds of leaders in these in-person programs each year.
However, in 2020 due to COVID-related health and safety
restrictions, we converted our programs into virtual formats
where viable. In addition, we developed “Leading Through
Uncertainty” training to help leaders effectively manage their
teams through the many challenges of 2020, and we offered
several virtual seminars on managing stress and work/life
balance.

DIVERSITY, EQUITY AND INCLUSION

We are taking action to increase diversity at all levels of our
company, create a truly inclusive environment and secure,
preserve and promote equity for our employees.

To help us accelerate progress in creating a truly inclusive work
culture at Weyerhaeuser, we identified inclusion as one of our
five core values in 2019 and formed an Inclusion Council of 20
diverse employees from across our company to help provide
insights and recommendations to our senior management
team. We have six focus areas: leadership and accountability;
equitable practices and policies; recruiting and hiring; training
and development; communication and culture; and affinity and
connection. We have set targets for improvement in each
category which are reviewed and reset annually. Our practices
for achieving and maintaining a strong, diverse and inclusive
workplace culture also include:
•“no tolerance” policies regarding discrimination and

harassment of employees, suppliers, customers and visitors;

•third-party reviews of pay equity;
•removal of names from resumes and creation of diverse

hiring teams;

•mandatory training on unconscious bias and harassment

prevention;

•ongoing company-wide communication on the importance of

inclusion and

•regular company-wide surveys and other means of

anonymously collecting candid feedback to assist us in
evaluating our progress and addressing any identified gaps.

Excluding temporary hires and part-time employees, in 2020,
40 percent of the company’s new U.S. hires met the company’s
criteria for diversity, which includes race, ethnicity, gender and
disability status. In response to our annual feedback survey
conducted for 2020, 82 percent of our employees agreed their
work environment is inclusive.

COMPANY CULTURE

We consider our strong company culture to be a competitive
advantage. We are intentional in our efforts to preserve the key
positives of our workplace environment, as well as continuously
improving and evolving our culture. At the heart of our culture is
an unwavering commitment to our core values — safety,
integrity, citizenship, sustainability and inclusion. Most of these
values have been ingrained in our culture for many decades;
they are cited often by our employees and are visible
throughout our organization. We also embrace five key
behaviors that shape our culture and guide how we work
together — urgency, accountability, courage, simplicity and
innovation. To assess the health of our culture, we conduct
regular company-wide surveys to collect candid feedback from
employees and assess overall engagement. In 2020, our
overall engagement score was 85 percent and our average
score on questions about the strength of our values was
83 percent. Another indicator we monitor to assess the
strength of our company culture is voluntary turnover, which
was only 6.5 percent in 2020.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

3

COMPETITIVE PAY & BENEFITS

We offer competitive compensation and benefits packages
based on experience, knowledge and skill level that are
designed to attract and retain talented employees and reward
superior performance. Some of our benefits include paid
parental leave, company match for retirement plans,
comprehensive medical and dental coverage and paid time off.

WHAT WE DO

This section provides information about how we:

•grow and harvest trees,
•maximize the value of every acre we own and
•manufacture and sell wood products.
For each of our business segments, we provide details about
what we do, where we do it, how much we sell and where we
are headed.

TIMBERLANDS

Our Timberlands segment manages 10.7 million acres of
private commercial timberlands in the U.S. We own 9.9 million
of those acres and control the remaining acres through long-
term contracts. In addition, we have renewable, long-term
licenses on 14.1 million acres of Canadian timberlands.

WHAT WE DO

Forestry Management

Our Timberlands segment:

•plants seedlings to reforest harvested areas using the most
effective regeneration method for the site and species
(natural regeneration is employed and managed in parts of
Canada and the northern U.S.);

•manages our timberlands as the trees grow to maturity;
•harvests trees to be converted into wood products, such as

lumber, pellets, pulp and paper;

•manages the health of our forests to sustainably maximize

harvest volumes, minimize risks, and protect unique
environmental, cultural, historical and recreational value and

•offers recreational access.
We seek to maximize the returns from our timberlands by
selling delivered logs and through stumpage sales to both
internal and external customers. We leverage our expertise in
forestry using research and planning systems to optimize log
production and innovative planting and harvesting techniques
across varying terrain. We use intensive, customized silviculture
to increase forest productivity and returns while managing our

4

forests on a sustainable basis. We use our scale, infrastructure
and supply chain expertise to deliver reliable and consistent
supply to our customers.

Competitive factors within each of our market areas generally
include price, species, grade, quality, proximity to wood-
consuming facilities and the ability to consistently meet
customer requirements. We compete in the marketplace
through our ability to provide customers with a consistent and
reliable supply of high-quality logs at scale volumes and
competitive prices. Our customers also value our status as a
Sustainable Forestry Initiative® (SFI) certified supplier.

Sustainable Forestry Practices

We manage our forests intensively to maximize the value of
every acre and produce a sustainable supply of wood fiber for
our customers. At the same time, we are careful to protect
biological diversity, water quality and other ecosystem
values. Our working forests also provide unique environmental,
cultural, historical and recreational value. We work hard to
protect these and other qualities, while still managing our
forests to produce financially mature timber. We follow
regulatory requirements, voluntary standards and certify
100 percent of our North American timberlands under the SFI
Forest Management Standard.

Canadian Forestry Operations

In Canada, we manage timberlands under long-term licenses
that serve as the primary source of raw material for our
manufacturing facilities in various provinces. When we harvest
trees, we pay the provinces at stumpage rates set by the
government. We transfer logs to our manufacturing facilities at
cost and do not generate any significant profit from the harvest
of timber from our licensed acres in Canada.

Timberlands Products

PRODUCTS

HOW THEY’RE USED

Delivered logs:
• Grade logs
• Fiber logs

Timber

Grade logs are made into lumber, plywood,
veneer and other products used in residential
homes, commercial structures, furniture,
industrial and decorative applications. Fiber logs
are sold to pulp, paper and oriented strand board
mills to make products used for printing, writing,
packaging, homebuilding and consumer products,
as well as into renewable energy and pellets.

Standing timber is sold to third parties through
stumpage sales.

Recreational leases

Timberlands are leased or permitted for
recreational purposes.

Other products

Seed and seedlings grown in the U.S. and wood
chips.

HOW WE MEASURE OUR PRODUCT

Summary of 2020 Standing Timber Inventory

We use multiple units of measure when transacting business
including:

GEOGRAPHIC AREA

MILLIONS OF TONS AT
DECEMBER 31, 2020

TOTAL INVENTORY(1)

•Thousand board feet (MBF) — used in the West to measure

the expected lumber recovery from a tree or log and
•Green tons (GT) — used in the South to measure weight;
factors used for conversion to product volume can vary by
species, size, location and season.

We report Timberlands volumes in ton equivalents.

WHERE WE DO IT

As of December 31, 2020, we sustainably managed
timberlands in 18 states. This included owned or contracted
acres in the following locations:

•2.7 million acres in the western U.S. (Oregon and

Washington);

•6.8 million acres in the southern U.S. (Alabama, Arkansas,
Florida, Georgia, Louisiana, Mississippi, North Carolina,
Oklahoma, South Carolina, Texas and Virginia) and
•1.2 million acres in the northern U.S. (Maine, New
Hampshire, Vermont, West Virginia and Wisconsin).

In Canada, we manage timberlands under long-term licenses
that provide raw material for our manufacturing facilities. These
licenses are in Alberta, British Columbia, Ontario and
Saskatchewan.

Our total timber inventory — including timber on owned and
contracted land — is approximately 593 million tons. This
timber inventory does not translate into a specific amount of
lumber or panel products because the quantity of end products
varies according to the age, species, size and quality of the
timber and will change over time as these variables adjust.

We maintain our timber inventory in an integrated resource
inventory system and geographic information system (GIS). The
resource inventory component of the system is proprietary and
is largely based on internally developed methods, including
growth and yield models developed by our research and
development organization. The GIS component is based on GIS
software that is viewed as the standard in our industry.

Timber inventory data collection and verification techniques
include the use of industry standard field sampling procedures
as well as proprietary remote sensing technologies in some
geographies. The data is collected and maintained at the
timber stand level.

We also own and operate nurseries and seed orchards in
Alabama, Arkansas, Georgia, Louisiana, Mississippi, Oregon,
South Carolina and Washington.

U.S.:

West

Douglas fir/Cedar

Whitewood

Hardwood

Total West

South

Southern yellow pine

Hardwood

Total South

North

Conifer

Hardwood

Total North

Total Company

159

30

13

202

264

85

349

17

25

42

593

(1) Inventory includes all conservation and non-harvestable areas.

Summary of 2020 Timberland Locations

GEOGRAPHIC AREA

U.S.:

West

Oregon

Washington

Total West

South

Alabama

Arkansas

Florida

Georgia

Louisiana

Mississippi

North Carolina

Oklahoma

South Carolina

Texas

Virginia

THOUSANDS OF ACRES AT
DECEMBER 31, 2020

FEE
OWNERSHIP

LONG-TERM
CONTRACTS

TOTAL
ACRES(1)

1,453

1,278

2,731

380

1,207

221

601

1,013

1,124

560

493

275

16

123

—

—

—

198

18

85

50

350

39

—

—

—

2

—

1,453

1,278

2,731

578

1,225

306

651

1,363

1,163

560

493

275

18

123

Total South

6,013

742

6,755

North

Maine

New Hampshire

Vermont

West Virginia

Wisconsin

Total North

Total Company

835

24

86

254

3

1,202

9,946

—

—

—

—

—

—

835

24

86

254

3

1,202

742

10,688

(1) Acres include all conservation and non-harvestable areas.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

5

We provide a year-round flow of logs to internal and external
customers. We sell grade and fiber logs to manufacturers that
produce a diverse range of products. We also sell standing
timber to third parties and lease land for recreational purposes.
Most of our timberlands are strategically located to take
advantage of road, logging and transportation systems for
efficient delivery of logs to customers.

Western United States

Our Western timberlands are well situated to serve the wood
products and pulp markets in Oregon and Washington. For the
year ended December 31, 2020, we sold 30 percent of our
total Western log sales volume internally. Additionally, our
location on the West Coast provides access to higher-value
export markets for Douglas fir and whitewood logs to Japan,
China and Korea. Our largest export market is Japan, where
Douglas fir is the preferred species for higher-valued post and
beam homebuilding. The size and quality of our Western
timberlands, coupled with their proximity to several deep-water
port facilities, competitively positions us to meet the needs of
Pacific Rim log markets.

Our holdings are composed primarily of Douglas fir, a species
highly valued for its structural strength, stiffness and
appearance. Most of our lands are located on the west side of
the Cascade Mountain Range with soil and rainfall conditions
considered favorable for growing this species. Our standing
timber inventory is comprised of 79 percent Douglas fir,
15 percent whitewood and 6 percent hardwood.

Our management systems and supply chain expertise provide
us a competitive operating advantage in a number of areas
including forestry and research, harvesting, marketing and
logistics. Additionally, our scale, diversity of timberlands
ownership and infrastructure on the West Coast allow us to
consistently and reliably supply logs to our internal and external
customers year-round.

We sell recreational use permits covering approximately
2 million acres of our owned Western timberlands.

2020 Western U.S. Inventory by Age / Species

MILLIONS OF TONS

60

50

40

30

20

10

0
AGE
(in years)

0–9

10–19

20–29

30–39

40–49

50–59

60–89

90–134

135+

DOUGLAS FIR/CEDAR

WHITEWOOD

HARDWOOD

Note: Inventory charted inlcudes all conservation and non-harvestable areas.

The average age of timber harvested from our Western
timberlands in 2020 was 49 years. In accordance with our
sustainable forestry practices, we harvest and replant
approximately 2 percent of our Western acreage each year.

Southern United States

Our Southern timberland ownership, covering 11 states, is well
situated to serve domestic wood products and pulp markets,
including third-party customers and our own mills. For the year
ended December 31, 2020, we sold 22 percent of our total
Southern log sales volume internally. Additionally, our Atlantic
and Gulf coastal locations position us to serve an emerging
Asian log export market. Our standing timber inventory is
comprised of 76 percent Southern yellow pine and 24 percent
hardwoods.

Operationally, we focus on efficiently harvesting and hauling
logs from our ownership and capitalizing on our scale and
supply chain expertise to consistently and reliably serve a broad
range of customers through seasonal and weather-related
events year-round.

We lease approximately 93 percent of our owned Southern
acreage for recreational purposes.

2020 Western U.S. Inventory by Species

2020 Southern U.S. Inventory by Species

DOUGLAS FIR/CEDAR

WHITEWOOD

HARDWOOD

6%

15%

79%

SOUTHERN
YELLOW PINE

HARDWOOD

24%

76%

6

2020 Southern U.S. Inventory by Age / Species

2020 Northern U.S. Inventory by Species

MILLIONS OF TONS

75

60

45

30

15

0
AGE
(in years)

0–4

5–9

10–14

15–19

20–24

25–29

30+

SOUTHERN YELLOW PINE

HARDWOOD

Note: Inventory charted includes all conservation and non-harvestable areas.

The average age of timber harvested from our Southern
timberlands in 2020 was 29 years. In accordance with our
sustainable forestry practices, we harvest and replant
approximately 3 percent of our acreage each year in the South.

Northern United States

Our Northern timberlands acres contain a diverse mix of
temperate broadleaf hardwoods and mixed conifer species
across timberlands located in five states. We grow over 50
species and market over 500 product grades to a diverse mix
of customers.

Our large-diameter cherry, red oak and hard maple sawlogs and
veneer logs serve domestic and export furniture markets. Our
maple and other appearance woods are used in furniture and
high-value decorative applications. In addition to high-value
hardwood sawlogs, our mix includes hardwood fiber logs for
pulp and oriented strand board applications. Hardwood
pulpwood is a significant market in the Northern region and we
have long-term supply agreements, primarily at market rates,
for nearly 95 percent of our hardwood pulp production.

We also grow softwood logs that supply our lumber and plywood
mills and other customers. Our competitive advantages include
a merchandising program to capture the value of the premium
hardwood logs.

Regeneration is predominantly natural, augmented by planting
where appropriate.

HARDWOOD

CONIFER

40%

60%

2020 Northern U.S. Inventory by Age / Species

MILLIONS OF TONS

15

10

5

0
AGE
(in years)

0–9

10-19

20-29

30-39

40-49

50-59

60-89

90-134

135+

HARDWOOD

CONIFER

Note: Inventory charted includes all conservation and non-harvestable areas.

The average age of timber harvested from our Northern
timberlands in 2020 was 53 years. Timber harvested in the
North is sold predominantly as delivered logs to domestic mills,
including our manufacturing facilities. For the year ended
December 31, 2020, we sold 7 percent of our total Northern
log sales volume internally. In accordance with our sustainable
forestry practices, we harvest approximately 1 percent of our
acreage each year in the North.

Canada — Licensed Forestlands

We manage forestlands in Canada under long-term licenses
from the provincial governments to secure volume for our
manufacturing facilities in various provinces. The provincial
governments regulate the volume of timber that may be
harvested each year through Annual Allowable Cuts (AAC),
which are updated every 10 years. As of December 31, 2020,
our AAC by province was:

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

7

Five-Year Summary of Timberlands Fee Harvest Volumes —
Percentage of Grade and Fiber

PERCENTAGE OF GRADE AND FIBER

West

South

North(1)

Uruguay(3)

Other(3)

Total

2020

2019

2018

2017

2016

Grade

Fiber

Grade

Fiber

Grade

Fiber

Grade

Fiber

Grade

Fiber

Grade

Fiber

90%

10%

48%

52%

49%

51%

—%

—%

—%

—%

60%

40%

89%

11%

49%

51%

37%

63%

—%

—%

—%

—%

59%

41%

90%

10%

51%

49%

46%

54%

—%

—%

—%

—%

62%

38%

89%

11%

52%

48%

49%

51%

69%

31%

47%

53%

63%

37%

87%

13%

52%

48%

47%

53%

66%

34%

45%

55%

64%

36%

(1) In November 2019, we sold our Michigan timberlands and in March 2020, we sold our
Montana timberlands. Refer to Note 4: Timberland Acquisitions and Divestitures for
further information on these divestitures.

(2) In September 2017, we divested our Uruguay operations.
(3) Other consisted of volumes managed for the Twin Creeks Venture. Our management

agreement for the Twin Creeks Venture began in April 2016 and terminated in December
2017.

HOW MUCH WE SELL

Our net sales to unaffiliated customers over the last two years
were:

•$1.5 billion in 2020 and
•$1.6 billion in 2019.
Our intersegment sales over the last two years were:

•$471 million in 2020 and
•$503 million in 2019.

•Alberta — 2,221 thousand tons,
•British Columbia — 547 thousand tons,
•Ontario — 154 thousand tons and
•Saskatchewan — 633 thousand tons.

When the volume is harvested, we pay the province for that
volume at stumpage rates set by the government. The
harvested logs are transferred to our manufacturing facilities at
cost (stumpage plus harvest, haul and overhead costs less any
margin on selling logs to third parties). Any profit from
harvesting the log through converting to finished products is
recognized at the respective mill in our Wood Products
segment.

Summary of License Arrangements

THOUSANDS OF ACRES AT
DECEMBER 31, 2020

TOTAL ACRES

5,399

1,166

2,574

4,987

14,126

GEOGRAPHIC AREA

Province:

Alberta

British Columbia

Ontario(1)

Saskatchewan(1)

Total Canada

(1) License is managed by partnership.

HOW MUCH WE HARVEST

Our fee harvest volumes are managed sustainably across all
regions to ensure the preservation of long-term economic value
of the timber and to capture maximum value from the markets.
This is accomplished by ensuring annual harvest schedules
target financially mature timber and reforestation activities align
with the growing of timber through its life cycle to financial
maturity.

Five-Year Summary of Timberlands Fee Harvest Volumes

FEE HARVEST VOLUMES IN THOUSANDS OF TONS

West(1)

South

North(2)

Uruguay(3)

Other(4)

Total

2020

8,542

2019

9,237

2018

2017

2016

9,571

10,083

11,083

23,149

26,278

26,708

27,149

26,343

1,226

2,042

2,129

2,205

—

—

—

—

—

—

822

1,384

2,044

1,119

701

32,917

37,557

38,408

41,643

41,290

(1) Western logs are primarily transacted in thousand board feet (MBF) but are converted to

ton equivalents for external reporting purposes.

(2) In November 2019, we sold our Michigan timberlands and in March 2020, we sold our
Montana timberlands. Refer to Note 4: Timberland Acquisitions and Divestitures for
further information on these divestitures.

(3) In September 2017, we divested our Uruguay operations.
(4) Other consisted of volumes managed for the Twin Creeks Venture. Our management

agreement for the Twin Creeks Venture began in April 2016 and terminated in December
2017.

8

Five-Year Summary of Net Sales for Timberlands

Percentage of 2020 Sales Dollars to Unaffiliated Customers

NET SALES IN MILLIONS OF DOLLARS

2020

2019

2018

2017

2016

WESTERN LOGS

SOUTHERN LOGS

NORTHERN LOGS

STUMPAGE AND
PAY-AS-CUT TIMBER

OTHER PRODUCTS

39%

49%

7%

4%

1%

Log Sales Volume

Our sales volume includes fee timber as well as logs purchased
in the open market.

Our log sales volumes to unaffiliated customers over the last
two years were:

•24,332 thousand tons in 2020 and
•26,963 thousand tons in 2019.
We sell three grades of logs — domestic grade, domestic fiber
and export. Factors that may affect log sales in each of these
categories include:

•domestic grade log sales — lumber usage, primarily for

housing starts and repair and remodel activity, the needs of
our own mills and the availability of logs from both outside
markets and our own timberlands;

•domestic fiber log sales — demand for wood chips by pulp
mills, containerboard mills, pellet mills and oriented strand
board mills and

•export log sales — the level of housing starts in Japan and
construction in China, as well as availability of logs from
other countries, particularly for China.

Net sales to
unaffiliated
customers:

Delivered logs:

West

South

North(1)

Other(2)

Total

Stumpage and
pay-as-cut timber

Uruguay
operations(3)

Recreational
lease revenue

Other products(4)

Subtotal net sales
to unaffiliated
customers

Intersegment net
sales

$

720 $

740 $

987 $

915 $

573

52

—

640

92

—

625

99

—

616

95

23

865

566

91

14

1,345

1,472

1,711

1,649

1,536

19

—

63

39

42

—

61

43

59

—

59

44

73

63

59

49

85

79

44

36

1,466

1,618

1,873

1,893

1,780

471

503

537

522

592

Total

$ 1,937 $ 2,121 $ 2,410 $ 2,415 $ 2,372

(1) In November 2019, we sold our Michigan timberlands and in March 2020, we sold our
Montana timberlands. Refer to Note 4: Timberland Acquisitions and Divestitures for
further information on these divestitures.

(2) Other delivered logs included sales from timberlands managed for the Twin Creeks

Venture. Our management agreement for the Twin Creeks Venture began in April 2016
and terminated in December 2017.

(3) In September 2017, we divested our Uruguay operations.
(4) Other products include sales of seeds and seedlings from our nursery operations and

wood chips.

Five-Year Trend for Total Net Sales in Timberlands

NET SALES IN MILLIONS OF DOLLARS

$1,780

$1,893

$1,873

$1,618

$1,466

$592

$522

$537

$503

$471

$2,000

$1,500

$1,000

$500

$0

2016

2017

2018

2019

2020

INTERSEGMENT SALES

WESTERN LOGS

SOUTHERN LOGS

NORTHERN LOGS

ALL OTHER
PRODUCTS

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

9

Five-Year Summary of Log Sales Volume to Unaffiliated
Customers

Five-Year Summary of Export Log Prices (#2 Sawlog Bark
On — $/MBF)

SALES VOLUME IN THOUSANDS

SELECTED PRODUCT PRICES

2020

2019

2018

2017

2016

Logs — tons:

West(1)

South

North(2)

Uruguay (3)

Other (4)

6,506

7,173

7,858

8,202

8,713

16,954

18,232

18,008

17,895

15,967

$840

$888

872

1,558

1,628

1,574

1,500

—

—

—

—

—

—

291

693

470

122

$479

$562

$1,001

$670

$836

$860

$525

$530

Total

24,332

26,963

27,494

28,655

26,772

(1) Western logs are primarily transacted in thousand board feet (MBF) but are converted to

ton equivalents for external reporting purposes.

(2) In November 2019, we sold our Michigan timberlands and in March 2020, we sold our
Montana timberlands. Refer to Note 4: Timberland Acquisitions and Divestitures for
further information on these divestitures.

(3) In September 2017, we divested our Uruguay operations.
(4) Other delivered logs included sales from timberlands managed for the Twin Creeks

Venture. Our management agreement for the Twin Creeks Venture began in April 2016
and terminated in December 2017.

Log Prices

Domestic and export grade logs are sold at market prices to
unaffiliated customers or our internal mills. The majority of our
log sales to unaffiliated customers involve sales to domestic
sawmills and the export market. Log prices in the following
tables are on a delivered (mill) basis.

Five-Year Summary of Published Domestic Log Prices (#2
Sawlog Bark On — $/MBF)

SELECTED PRODUCT PRICES

$824

$716

$650

$665

$714

$328

$320

$318

$328

$329

2016

2017

2018

2019

2020

DOUGLAS FIR

SOUTHERN PINE LARGE

SOURCE: Loglines, Timber Mart-South

2016

2017

2018

2019

2020

COASTAL — DOUGLAS FIR — LONGVIEW

COASTAL — HEMLOCK

SOURCE: Weyerhaeuser, Loglines

Log prices are affected by the supply of and demand for grade
and fiber logs. Export log prices are particularly affected by the
Japanese housing market, Chinese construction activity and the
availability of logs.

WHERE WE’RE HEADED

Our competitive strategies include:

•continuing to capitalize on our scale of operations,

silviculture and supply chain expertise and sustainability
practices;

•improving cash flow through operational excellence initiatives
including merchandising for value, harvest and transportation
efficiencies as well as focused silviculture investments to
improve forest productivity;

•leveraging our export and domestic market access,
infrastructure and strong customer relationships;

•increasing our recreational lease revenue and
•continuing to maximize the value of our timberlands portfolio
by managing the acres to achieve the highest and best use.

REAL ESTATE, ENERGY AND NATURAL RESOURCES

Our Real Estate & ENR segment maximizes the value of our timberland
ownership through application of our asset value optimization (AVO)
process and captures the full value of surface and subsurface assets,
such as construction materials, industrial minerals, oil, natural gas and
wind and solar resources.

10

WHAT WE DO

Real Estate

Properties that exhibit higher use value than commercial
timberlands are monetized by our Real Estate business over
time. We analyze our existing U.S. timberland holdings using a
process we call AVO. We start with understanding the value of a
parcel operating as commercial timberlands and then assess
the specific real estate attributes of the parcel and its
corresponding market. The assessment includes
demographics, infrastructure and proximity to amenities and
recreation to determine the potential to realize a premium value
to commercial timberland. Attributes can evolve over time, and
accordingly, the assignment of value and opportunity can
change. We continually revisit our AVO assessment for all our
timberland acres.

We expect to sell these properties for recreational,
conservation, commercial or residential purposes over time. We
will entitle a small amount of acres to support development.
Development, outside of entitlement activities, is typically
performed by third parties. Some of our real estate activities
are conducted through our TRSs.

Occasionally, we sell a small amount of timberlands acreage in
areas where we choose to reduce our market presence and
capture a price that exceeds the value derivable from holding
and operating as commercial timberlands. These transactions
will vary based on factors including the locations and physical
characteristics of the timberlands.

The volume of real estate sales is a function of many factors,
including the general state of the economy, demand in local
real estate markets, the ability of buyers to obtain financing,
the number of competing properties listed for sale, the
seasonal nature of sales (particularly in the northern states),
the plans of adjacent landowners, our expectation of future
price appreciation, the timing of harvesting activities and the
availability of government and not-for-profit funding. In any
period, the average sales price per acre will vary based on the
location and physical characteristics of parcels sold.

Energy and Natural Resources

We focus on maximizing potential opportunities for construction
materials, industrial minerals, renewable energy (including wind
and solar energy), oil, natural gas, rights of way easements on
our timberlands portfolio and retained mineral interests.

As the owner of mineral rights and interests, we typically do not
invest in development or operations but, instead, enter into
contracts with operators granting them the rights to explore and
sell energy and natural resources produced from our property in
exchange for rents and royalties.

We generally reserve mineral rights when selling timberlands
acreage. Some Energy and Natural Resources activities are
conducted through our TRSs.

Real Estate, Energy and Natural Resources Sources of
Revenue

SOURCES

Real Estate

Energy and Natural
Resources

ACTIVITIES
•Select timberland tracts are sold for

recreational, conservation, commercial or
residential purposes.

•Rights are granted to explore, extract and sell
construction aggregates (rock, sand and
gravel), industrial materials and oil and natural
gas.
•Ground leases and easements are granted to
wind and solar developers to generate
renewable electricity from our timberlands.
•Rights are granted to access and utilize
timberland acreage for communications,
pipeline, powerline and transportation rights of
way.

WHERE WE DO IT

Our Real Estate business identifies opportunities to realize
premium value for our U.S. owned timberland acreage.

The majority of our Energy and Natural Resources revenue
sources are located in Oregon, Washington, South Carolina and
Georgia (construction material royalties); as well as the Gulf
South and West Virginia (oil and natural gas royalties).

HOW MUCH WE SELL

Our net sales to unaffiliated buyers over the last two years
were:

•$276 million in 2020 and
•$313 million in 2019.

Five-Year Summary of Net Sales for Real Estate, Energy and
Natural Resources

NET SALES IN MILLIONS OF DOLLARS(1)

2020

2019

2018

2017

2016

Net sales:

Real Estate

Energy and Natural
Resources

$ 202 $ 225 $ 229 $ 208 $ 172

74

89

78

73

54

Total

$ 276 $ 314 $ 307 $ 281 $ 226

(1) Amounts include net sales to unaffiliated buyers as well as intersegment sales.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

11

Five-Year Summary of Real Estate Sales Statistics

Wood Products Sources of Revenue

REAL ESTATE SALES STATISTICS

PRODUCTS

HOW THEY’RE USED

2020

2019

2018

2017

2016

Structural lumber

Acres sold

111,898

113,315

131,575

97,235

82,687

Average
price per
acre

$

1,690 $

1,848 $

1,701 $

2,079 $

2,072

Oriented strand board

Structural framing for new residential, repair
and remodel, treated applications,
industrial and commercial structures.

Structural sheathing, subflooring and stair
tread for residential, multi-family and
commercial structures.

Structural elements for residential, multi-
family and commercial structures such as
floor and roof joists, headers, beams,
subflooring and sheathing.

Medium density fiberboard products for
store fixtures, molding, doors and cabinet
components.

Engineered wood products
•Solid section
•I-joists
•Softwood plywood
•Medium density
fiberboard

Other products

Wood chips and other byproducts.

Complementary building
products

Complementary building products such as
cedar, decking, siding, insulation and rebar
sold in our distribution facilities.

WHERE WE DO IT

We operate manufacturing facilities in the United States and
Canada. We distribute through a combination of Weyerhaeuser
distribution centers and third-party distributors. Information
about the locations, capacities and actual production of our
manufacturing facilities is included below.

Summary of Wood Products Capacities and Principal
Manufacturing Locations as of December 31, 2020

CAPACITIES IN MILLIONS

PRODUCTION
CAPACITY

NUMBER OF
FACILITIES

FACILITY
LOCATIONS

Structural lumber —
board feet

5,225

Oriented strand
board — square feet
(3/8”)

3,140

19 Alabama, Arkansas,
Louisiana (2),
Mississippi (3),
Montana, North
Carolina (3), Oklahoma,
Oregon (2), Washington
(2), Alberta (2), British
Columbia

6 Louisiana, Michigan,
North Carolina, West
Virginia, Alberta,
Saskatchewan

Engineered solid
section — cubic feet(1)

Softwood plywood —
square feet (3/8”)(2)

Medium density
fiberboard — square
feet (3/4”)

42

6 Alabama, Louisiana,

Oregon, West Virginia,
British Columbia,
Ontario

3 Arkansas, Louisiana,

Montana

1 Montana

610

265

(1) This represents total press capacity. Our engineered solid section facilities also may
produce engineered I-joists. In 2020, approximately 25 percent of the total press
production was converted into 175 million lineal feet of I-joist.

(2) All of our plywood facilities also produce veneer.

WHERE WE’RE HEADED

Our competitive strategies include:

•continuing to apply the AVO process to identify opportunities

to capture a premium to timber value;

•maintaining a flexible, low-cost execution model by continuing
to leverage strategic relationships with outside real estate
brokers;

•capturing the full value of our oil and natural gas, aggregates

and industrial minerals and wind and solar resources;

•capitalizing on emerging carbon opportunities and
•delivering the most value from every acre.

WOOD PRODUCTS

We are one of the largest manufacturers and distributors of wood
products in North America.

WHAT WE DO

Our Wood Products segment:

•manufactures high-quality structural lumber, oriented strand

board, engineered wood products and other specialty
products for the residential, multi-family, industrial, light
commercial and repair and remodel markets;

•distributes our products as well as complementary building
products that we purchase from other manufacturers and
•exports our structural lumber and engineered wood products,

primarily to Asia.

12

Production capacities listed represent annual production
volume under normal operating conditions and producing a
normal product mix for each individual facility.

We also own or lease 18 distribution centers in the U.S. where
our products and complementary building products are sold.

Five-Year Summary of Wood Products Production

PRODUCTION IN MILLIONS

2020

2019

2018

2017

2016

4,666

4,705

4,541

4,509

4,516

Five-Year Trend for Total Net Sales in Wood Products

NET SALES IN MILLIONS OF DOLLARS

$5,023

$5,297

$4,623

$4,359

$5,790

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

Structural lumber —
board feet

Oriented strand
board — square
feet (3/8”)

Engineered solid
section — cubic feet

Engineered I-joists —
lineal feet

Softwood plywood —
square feet (3/8”)

Medium density
fiberboard — square
feet (3/4”)

3,013

2,969

2,837

2,995

2,910

2016

2017

2018

2019

2020

23.0

22.6

24.3

25.1

22.8

Percentage of 2020 Net Sales Dollars in Wood Products

175

182

191

213

184

STRUCTURAL LUMBER

ORIENTED STRAND BOARD

17%

347

386

404

370

396

ENGINEERED SOLID SECTION

200

202

220

232

209

ENGINEERED I-JOISTS

SOFTWOOD PLYWOOD

MEDIUM DENSITY
FIBERBOARD

OTHER PRODUCTS

45%

3%
3%
5%

9%

18%

HOW MUCH WE SELL

Revenues of our Wood Products segment come from sales to
wood products dealers, do-it-yourself retailers, builders and
industrial users. Wood Products net sales were $5.8 billion in
2020 and $4.6 billion in 2019.

Wood Products Volume

Five-Year Summary of Sales Volume for Wood Products

Five-Year Summary of Net Sales for Wood Products

SALES VOLUME IN MILLIONS(1)

NET SALES IN MILLIONS OF DOLLARS

Structural lumber $ 2,602 $ 1,892 $ 2,258 $ 2,058 $ 1,839

2020

2019

2018

2017

2016

Oriented strand
board

Engineered solid
section

Engineered
I-joists

Softwood
plywood

Medium density
fiberboard

Other products
produced(1)

Complementary
building products

1,013

505

316

171

171

336

676

632

510

323

161

166

337

602

891

521

336

200

177

330

584

904

500

336

176

183

325

541

707

450

290

174

158

226

515

2020

2019

2018

2017

2016

4,873

4,857

4,684

4,658

4,723

2,956

2,916

2,827

2,971

2,934

23.4

23.2

24.3

25.1

23.3

190

192

204

220

195

414

445

459

453

481

201

200

212

222

206

Structural lumber —
board feet

Oriented strand
board — square feet
(3/8”)

Engineered solid
section — cubic feet

Engineered I-joists —
lineal feet

Softwood Plywood —
square feet (3/8”)

Medium density
fiberboard — square
feet (3/4”)

(1) Sales volume includes sales of internally produced products as well as complementary

Total

$ 5,790 $ 4,623 $ 5,297 $ 5,023 $ 4,359

building products sold primarily through our distribution centers.

(1) Other products produced sales include wood chips, other byproducts and third-party

residual log sales from our Canadian Forestlands operations.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

13

Wood Products Prices

Prices for commodity wood products — structural lumber,
oriented strand board and softwood plywood — increased
significantly in 2020 from 2019.

Five-Year Summary of Published Oriented Strand Board
Prices — $/MSF

SELECTED PUBLISHED PRODUCT PRICES

In general, the following factors influence sales realizations for
wood products:

$269

$354

$350

$442

$210

2016

2017

2018

2019

2020

OSB (7/16") NORTH CENTRAL PRICE

SOURCE: Random Lengths

WHERE WE’RE HEADED

Our competitive strategies include:

•achieving industry-leading controllable manufacturing costs
through operational excellence and disciplined capital
execution;

•aligning strongly with fiber supply;
•leveraging our brand and reputation as the preferred provider

of quality building products and

•pursuing disciplined, profitable sales growth in target

markets.

•Demand for wood products used in residential and multi-
family construction and the repair and remodel of existing
homes affects prices. Residential and multi-family
construction is influenced by factors such as population
growth and other demographics, availability of labor and lots,
the level of employment, consumer confidence, consumer
income, availability of financing and interest rate levels, and
the supply and pricing of existing homes on the market.
Repair and remodel activity is affected by the size and age of
existing housing inventory and access to home equity
financing and other credit.

•The supply of commodity building products such as structural
lumber, oriented strand board and softwood plywood affects
prices. A number of factors can influence supply, including
changes in production capacity and utilization rates, weather,
raw material supply and availability of transportation.

The following graphs reflect product price trends for the past
five years.

Five-Year Summary of Published Lumber Prices — $/MBF

SELECTED PUBLISHED PRODUCT PRICES

$670

$606
$573
$556

$533

$501
$480
$472

$469

$432
$427
$401

$417
$383
$361
$359

$408
$377

$338

$305

2016

2017

2018

2019

2020

2X4 DOUGLAS FIR (KILN DRIED)

2X4 DOUGLAS FIR (GREEN)

2X4 SOUTHERN YELLOW PINE (KILN DRIED)

2X4 SPRUCE-PINE-FIR (MILL)

SOURCE: Random Lengths

14

INFORMATION ABOUT OUR EXECUTIVE OFFICERS

Adrian M. Blocker, 64, has been senior vice president,
Timberlands, since January 2019. Previously, he served as
senior vice president, Wood Products, from January 2015 to
January 2019. He joined the company in May 2013 as vice
president, Lumber. Prior to joining the company, he served as
CEO of the Wood Products Council. He has held numerous
leadership positions in the industry focused on forest
management, fiber procurement, consumer packaging, strategic
planning, business development and manufacturing, at
companies including West Fraser, International Paper and
Champion International.

Russell S. Hagen, 55, has been senior vice president and chief
financial officer since February 2016. Previously, he served as
senior vice president, Business Development, at Plum Creek
from December 2011 to February 2016. Prior to this he was
vice president, Real Estate Development, overseeing the
development activities of the company’s real estate, oil and
gas, construction materials and bioenergy businesses.
Mr. Hagen began his career with Coopers and Lybrand, where
he was a certified public accountant and led the audits of
public clients in technology, banking and natural resource
industries.

Kristy T. Harlan, 47, has been senior vice president, general
counsel and corporate secretary since January 2017. She leads
the company’s Law department, with responsibility for global
legal, compliance, enterprise risk management, procurement
and land title functions. Before joining the company, she was a
partner at K&L Gates LLP from January 2007 to November
2016. Previously, she worked as an attorney at Preston
Gates & Ellis LLP and Akin Gump Strauss Hauer & Feld LLP.

James A. Kilberg, 64, has been senior vice president, Real
Estate, Energy and Natural Resources, since April 2016. In this
position, he oversees the company’s real estate development,
land asset management, conservation, mitigation banking,
recreational lease management, oil and gas, construction
materials, heavy minerals, wind and solar. Prior to joining the
company, he served as Plum Creek’s senior vice president,
Real Estate, Energy and Natural Resources, from 2006 to
February 2016, and as Plum Creek’s vice president, Land
Management, from 2001 to 2006. Prior to joining Plum Creek,
Mr. Kilberg held several executive positions in real estate,
asset management and development.

Denise M. Merle, 57, has been senior vice president and chief
administration officer since February 2018. Previously, she
served as senior vice president, Human Resources and
Information Technology, from February 2016 to February 2018
and senior vice president, Human Resources and Investor
Relations, from February 2014 to February 2016. She was

director, Finance and Human Resources, for the Lumber
business from 2013 to 2016. Prior to that, she was director,
Compliance & Enterprise Planning, from 2009 to 2013, and
director, Internal Audit, from 2004 to 2009. She has also held
various roles in the company’s paper and packaging
businesses, including finance, capital planning and analysis,
and business development. She is a licensed CPA in the state
of Washington.

Keith J. O’Rear, 58, has been senior vice president, Wood
Products, since January 2019. Previously, he was vice
president of Wood Products sales and marketing from 2017 to
2018 and vice president of Wood Products Manufacturing for
the company’s Mid-South region from 2014 to 2017.
Mr. O’Rear led the company’s Timberlands operations
in Oklahoma and Arkansas from 2013 to 2014, and prior to
that he held various manufacturing leadership roles at the
company’s lumber mills in Dierks, Arkansas, and Idabel,
Oklahoma. He also led a variety of initiatives for the company in
the areas of safety, reliability, strategic planning and large
capital projects.

Devin W. Stockfish, 47, has been president and chief
executive officer and a member of the company’s board of
directors since January 2019. Previously, he served as senior
vice president, Timberlands, from January 2018 to December
2018 and as vice president, Western timberlands, from January
2017 to December 2017. He also served as senior vice
president, general counsel and corporate secretary, from July
2014 to December 2016 and as assistant general counsel
from March 2013 to July 2014. Before joining the company in
March 2013, he was vice president and associate general
counsel at Univar Inc. where he focused on mergers and
acquisitions, corporate governance and securities law.
Previously, he was an attorney in the law department at
Starbucks Corporation and practiced corporate law at K&L
Gates LLP. Before he began practicing law, Mr. Stockfish was
an engineer with the Boeing Company.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

15

NATURAL RESOURCE AND ENVIRONMENTAL
MATTERS

We are subject to a multitude of laws and regulations in the
operation of our businesses. We also participate in voluntary
certification of our timberlands to ensure that we sustain their
overall quality, including the protection of wildlife and water
quality. Changes in law and regulation, or certification
standards, can significantly affect our business.

REGULATIONS AFFECTING FORESTRY PRACTICES

In the United States, regulations established by federal, state and local
government agencies to protect water quality, wetlands and other
wildlife habitat could affect future harvests and forest management
practices on our timberlands. Forest practice laws and regulations that
affect present or future harvest and forest management activities in
certain states include:

•limits on the size of clearcuts,
•requirements that some timber be left unharvested to protect

water quality and fish and wildlife habitat,

•regulations regarding construction and maintenance of forest

roads,

•rules requiring reforestation following timber harvest,
•regulations on the use of pesticides and herbicides and
•various related permit programs.
Each state in which we own timberlands has developed best
management practices to reduce the effects of forest practices
on water quality and aquatic habitats. Additional and more
stringent regulations may be adopted by various state and local
governments to achieve water-quality standards under the
federal Clean Water Act, protect fish and wildlife habitats,
human health, or achieve other public policy objectives.

In Canada, our forest operations are carried out on public
timberlands under forest licenses with the provinces. All forest
operations in Canada are subject to:

•forest practices and environmental regulations and
•license requirements established by contract between us and

the relevant province designed to:
– protect environmental values and
– encourage other stewardship values.

In Canada, 21 member companies of the Forest Products
Association of Canada (FPAC), including Weyerhaeuser’s
Canadian subsidiary, announced in May 2010 the signing of a
Canadian Boreal Forest Agreement (CBFA) with nine
environmental organizations. The CBFA applies to approximately
72 million hectares of public forests licensed to FPAC members
and, when fully implemented, was expected to lead to the
conservation of significant areas of Canada’s boreal forest and
protection of boreal species at risk, in particular, woodland

16

caribou. While the CBFA mandate came to an end in 2017,
CBFA signatories continue to work on management plans with
provincial governments and seek the participation of aboriginal
and local communities in advancing the goals of the CBFA.

ENDANGERED SPECIES PROTECTIONS

In the United States, a number of fish and wildlife species that
inhabit geographic areas near or within our timberlands have
been listed as threatened or endangered under the federal
Endangered Species Act (ESA) or similar state laws, including
but not limited to:

•the northern spotted owl, the marbled murrelet, a number of
salmon species, bull trout and steelhead trout in the Pacific
Northwest;

•several freshwater mussel and sturgeon species and
•the red-cockaded woodpecker, gopher tortoise, dusky gopher
frog, American burying beetle and Northern long-eared bat in
the South or Southeast.

Additional species or populations may be listed as threatened
or endangered as a result of pending or future citizen petitions
or petitions initiated by federal or state agencies. In addition,
significant citizen litigation seeks to compel the federal
agencies to designate “critical habitat” for ESA-listed species,
and many cases have resulted in settlements under which
designations will be implemented over time. Such designations
may adversely affect some management activities and options.
Restrictions on timber harvests can result from:

•federal and state requirements to protect habitat for

threatened and endangered species;

•regulatory actions by federal or state agencies to protect

these species and their habitat and

•citizen suits under the ESA.
Such actions could increase our operating costs and affect
timber supply and prices in general. To date, we do not believe
that these measures have had, and we do not believe that in
2021 they will have, a significant effect on our harvesting
operations. We anticipate that likely future actions will not
disproportionately affect Weyerhaeuser as compared with
comparable operations of U.S. competitors.

In Canada:

•The federal Species at Risk Act (SARA) requires protective

measures for species identified as being at risk and for their
critical habitat. Pursuant to SARA, Environment Canada
continues to identify and assess species deemed to be at
risk and their critical habitat.

•In October 2012, the Canadian Minister of the Environment
released a strategy for the recovery of the boreal population
of woodland caribou under the SARA. The population and
distribution objectives for boreal caribou across Canada are
to (1) maintain the current status of existing, self-sustaining
local caribou populations and (2) stabilize and achieve self-
sustaining status for non-self-sustaining local caribou
populations. Critical habitat for boreal caribou is identified for
all boreal caribou ranges, except for northern
Saskatchewan’s Boreal Shield range (SK1) where additional
information is required for that population. Species
assessment and recovery plans are developed in
consultation with aboriginal communities and stakeholders.
•In 2017, the Provinces were required to update the federal
government on any progress associated with their draft
caribou range plans. These draft plans will be further
evaluated in 2021, and any additional information on
potential effects to forest harvest operations will be
released.

The identification and protection of habitat and the
implementation of range plans and land use action plans may,
over time, result in additional restrictions on timber harvests
and other forest management practices that could increase
operating costs for operators of timberlands in Canada. To
date, we do not believe that these Canadian measures have
had, and we do not believe that in 2021 they will have, a
significant effect on our harvesting operations. We anticipate
that likely future measures will not disproportionately affect
Weyerhaeuser as compared with similar operations of Canadian
competitors.

FOREST CERTIFICATION STANDARDS

We operate in North America under the Sustainable Forestry
Initiative® (SFI). This is a certification standard designed to
supplement government regulatory programs with voluntary
landowner initiatives to further protect certain public resources
and values. SFI is an independent standard, overseen by a
governing board consisting of:

•conservation organizations,
•academia,
•the forest industry and
•large and small forest landowners.
Ongoing compliance with SFI may result in some increases in
our operating costs and reduction of our timber harvests in
some areas. There is also competition from other private
certification systems, primarily the Forest Stewardship Council
(FSC), coupled with efforts by supporters to further those
systems by persuading customers of forest products to require
products certified to their preferred system. Certain features of

the FSC system could impose additional operating costs on
timberland management. Because of the considerable variation
in FSC standards, and variability in how those standards are
interpreted and applied, if sufficient marketplace demand
develops for products made from raw materials sourced from
other than SFI-certified forests, we could incur substantial
additional costs for operations and be required to reduce
harvest levels.

WHAT THESE REGULATIONS AND CERTIFICATION
PROGRAMS MEAN TO US

The regulatory and non-regulatory forest management programs
described above have:

•increased our operating costs;
•resulted in changes in the value of timber and logs from our

timberlands;

•contributed to increases in the prices paid for wood products

and wood chips during periods of high demand;

•sometimes made it more difficult for us to respond to rapid
changes in markets, extreme weather or other unexpected
circumstances and

•potentially encouraged further reductions in the use of, or
substitution of other products for, lumber, oriented strand
board, engineered wood products and plywood.

We believe that these regulations and programs have not had,
and in 2021 will not have, a significant effect on our total
harvest of timber in the United States or Canada. However,
these kinds of programs may have such an effect in the future.
We expect we will not be disproportionately affected by these
programs as compared with typical owners of comparable
timberlands. We also expect that these programs will not
significantly disrupt our planned operations over large areas or
for extended periods.

CANADIAN ABORIGINAL RIGHTS

Many of the Canadian timberlands are subject to the
constitutionally protected treaty or common-law rights of
aboriginal peoples of Canada. Most of British Columbia (B.C.) is
not covered by treaties, and as a result the claims of B.C.’s
aboriginal peoples relating to forest resources have been
largely unresolved. Nonetheless, the Supreme Court of Canada
ruled that the Tsilhqot’in Nation holds aboriginal title to
approximately 1,900 square kilometers in B.C., the first time
the court has declared title to exist based on historical
occupation by aboriginal peoples. Many aboriginal groups
continue to be engaged in treaty discussions with the
governments of B.C., other provinces and Canada.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

17

Final or interim resolution of claims brought by aboriginal
groups can be expected to result in:
•additional restrictions on the sale or harvest of timber,
•potential increase in operating costs and
•effect on timber supply and prices in Canada.
We believe that such claims will not have a significant effect on
our total harvest of timber or production of forest products in
2021, although they may have such an effect in the future.

POLLUTION-CONTROL REGULATIONS

Our operations are subject to various federal, state, provincial
and local pollution control laws and regulations.

These laws and regulations, as well as market demands,
impose controls with regard to:
•air, water and land;
•solid and hazardous waste management;
•waste disposal;
•remediation of contaminated sites and
•the chemical content of some of our products.
Compliance with these laws, regulations and demands usually
involves capital expenditures as well as additional operating
costs. We cannot easily quantify the future amounts of capital
expenditures we might have to make to comply with these laws,
regulations and demands or the effects on our operating costs
because in some instances compliance standards have not
been developed or have not become final or definitive. In
addition, it is difficult to isolate the environmental component
of most manufacturing capital projects.

Our capital projects typically are designed to:
•enhance safety,
•extend the life of a facility,
•lower costs and improve efficiency,
•improve reliability,
•increase capacity,
•facilitate raw material changes and handling requirements,
•increase the economic value of assets or products and
•comply with regulatory standards.

ENVIRONMENTAL CLEANUP

We are involved in the environmental investigation or
remediation of numerous sites. Of these sites:
•we may have the sole obligation to remediate,
•we may share that obligation with one or more parties,
•several parties may have joint and several obligations to

remediate and

•we may have been named as a potentially responsible party
for contaminated sites, including those designated as U.S.
Superfund sites.

18

Our liability with respect to these various sites ranges from
insignificant to substantial. The amount of liability depends on
the:

•quantity, toxicity and nature of materials at the site and
•number and economic viability of the other responsible

parties.

We spent approximately $8 million in 2020 and expect to
spend approximately $6 million in 2021 on environmental
remediation of these sites.

It is our policy to accrue for environmental remediation costs
when we:

•determine it is probable that such an obligation exists and
•can reasonably estimate the amount of the obligation.
Based on currently available information and analysis, we
believe it is reasonably possible that our costs to remediate all
the identified sites may exceed our current accruals of
$57 million by up to $121 million. This estimate of the upper
end of the range of reasonably possible additional costs is
much less certain than the estimates we currently are using to
determine how much to accrue. The estimate of the upper
range also relies on assumptions less favorable to us among
the range of reasonably possible outcomes.

REGULATION OF AIR EMISSIONS IN THE U.S.

The United States Environmental Protection Agency (EPA) has
promulgated regulations for air emissions from:

•wood products facilities and
•industrial boilers.
These regulations cover:

•hazardous air pollutants that require use of maximum

achievable control technology (MACT) and

•controls and/or monitoring for pollutants that contribute to

smog, haze and more recently, greenhouse gases.

The EPA has issued several rules relating to MACT standards
and the emission of greenhouse gases from various energy-
producing sources. Several court decisions have made the
extent of applicability of these rules uncertain. Depending on
the final outcomes of these decisions, these regulatory
programs could affect our operations by increasing the cost of
purchasing electricity or from mandated energy demand
reductions that could apply to our mills and other facilities that
we operate. The EPA is also expected to issue rules relating to
biomass emissions, which is a significant source of energy at
our mills. The effect of these existing and future emissions
regulations, as well as related court decisions, on our
operations remains uncertain. We continue to track and

evaluate the litigation and regulatory developments but are not
able to predict whether the regulations, when complete and
implemented, will have a material effect on our operations.

To address concerns about greenhouse gases as a pollutant,
we:

•closely monitor legislative, regulatory and scientific

developments pertaining to climate change;

•adopted in 2006, as part of the company’s sustainability
program, a goal of reducing greenhouse gas emissions by
40 percent by 2020 compared with our emissions in 2000,
assuming a comparable portfolio and regulations;
•determined to achieve this goal by increasing energy

efficiency and using more greenhouse gas-neutral, biomass
fuels instead of fossil fuels and

•reduced greenhouse gas emissions by over 50 percent

considering changes in the asset portfolio according to 2018
data, compared to our 2000 baseline.

Additional factors that could affect regulation of greenhouse
gas emissions in the future include:

•regional airsheds that facilitate coordinated action across

borders;

•industrial sector-based emission requirements that set a
national base level of performance for major industries in
Canada and

•improved intergovernmental collaboration to reduce

emissions from the transportation sector.

In addition to these existing and proposed regulations,
Environment and Climate Change Canada, a Canadian federal
agency, released the Pan-Canadian Framework on Clean Growth
and Climate Change, a “Greenhouse Gas Emission
Framework.” The framework put in place a national, sector-
based greenhouse gas reduction program applicable to a
number of industries, including ours.

All Canadian provincial governments:

•have greenhouse gas reporting requirements,
•are working on reduction strategies and
•together with the Canadian federal government, are
considering new or revised emission standards.

•policy proposals by federal or state governments regarding

regulation of greenhouse gas emissions,

•Congressional legislation regulating or taxing greenhouse gas

emissions within the next several years and

Along with clean air regulations, British Columbia, a province in
which we operate, has adopted a carbon tax and Alberta, where
we also have operations, has a mandatory greenhouse gas
emission reduction regulation.

•establishment of a multistate or federal greenhouse gas
emissions reduction trading system with potentially
significant implications for all U.S. businesses.

We believe these developments have not had, and in 2021 will
not have, a significant effect on our operations. Although these
measures could have a material adverse effect on our
operations in the future, we expect that we will not be
disproportionately affected by these measures as compared
with owners of comparable operations. We maintain an active
forestry research program to track and understand any potential
effect from actual climate change related parameters that could
affect the forests we own and manage and do not anticipate
any disruptions to our planned operations.

REGULATION OF AIR EMISSIONS IN CANADA

Our wood products facilities are regulated in Canada under
provincial air quality rules. The Canadian federal government
has also proposed an air quality management system (AQMS)
as a comprehensive national approach for improving air quality
in Canada to go along with existing provincial air quality
regulations. The AQMS includes:

•ambient air quality standards for outdoor air quality

management across the country;

•a framework for air zone air management within provinces

and territories that targets specific sources of air emissions;

Although these and related regulations and measures have not
had, and we do not expect in 2021 that they will have, a
material effect on our operations, they could in the future.

REGULATION OF WATER IN THE U.S.

Our operations are regulated under the Clean Water Act, which
regulates the discharge of pollutants into the waters of the U.S.
This generally means obtaining permits for certain of our
silviculture activities and abiding by applicable restrictions.
Federal agency rulemaking and related litigation under the act
has led to increased jurisdiction of the act by expanding the
definition of waterways subject to the act’s regulation. This, in
turn, has increased the number of required federal and state
permits in some areas of our operations as it relates to the
application of pesticides and herbicides on timberlands, which
has increased operating costs. Pending and future federal and
state rulemaking, and judicial challenges thereto, could make
application of the Clean Water Act, as well as comparable state
laws, more or less costly to Weyerhaeuser, and we are not able
to predict the final resolution of these matters. Although this
and related regulations have not had, and we do not expect in
2021 that they will have, a material effect on our operations,
they could in the future.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

19

REGULATION OF WATER IN CANADA

Changes to the Canadian Federal Fisheries Act have moved the
focus of that legislation from habitat protection to fisheries
protection and increased penalties. We expect further changes
to these regulations, but we cannot predict the scope or
potential effect, if any, on our operations. Although this and
related Canadian regulations have not had, and we do not
expect in 2021 that they will have, a material effect on our
operations, they could in the future.

POTENTIAL CHANGES IN POLLUTION REGULATION

State governments in the U.S. continue to promulgate total
maximum daily load (TMDL) requirements for pollutants in water
bodies that do not meet state or EPA water quality standards.
State TMDL requirements may set:

•limits on pollutants that may be discharged to a body of

water; or

•additional requirements, such as best management practices
for nonpoint sources, including timberland operations, to
reduce the amounts of pollutants.

Moreover, some states, including at least two in which we
operate, have adopted or have introduced legislation to adopt
human-health-based water quality standards. These
requirements may alter or introduce restrictions on some of our
silviculture activities, notably the application of pesticides and
herbicides to our timberlands in some areas. In Canada,
various levels of government have been working to address
water issues including use, quality and management. Recent
areas of focus include water allocation, regional watershed
protection, protection of drinking water, water pricing and a
national water quality index.

Although these developments have not had, and we do not
expect in 2021 that they will have, a material effect on our
operations, they could in the future.

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FORWARD-LOOKING STATEMENTS

This report contains statements concerning our future results
and performance that are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements often reference or describe our expected
future financial and operating performance; our plans,
strategies, intentions and expectations; our operational
excellence and other strategic initiatives, including those
pertaining to operating and other costs, product development
and production; estimated taxes and tax rates; future debt
payments; future restructuring charges; expected results of
litigation and other legal proceedings and contingent liabilities,
and the sufficiency of litigation and other contingent liability
reserves; expected uses of cash, including future dividends and
share repurchases; expected capital expenditures; expected
economic conditions, including markets, pricing and demand for
our products; laws and regulations relevant to our businesses
and our expectations relating to pension contributions, returns
on invested pension plan assets and expected benefit
payments.

Forward-looking statements can be identified by the fact that
they do not relate strictly to historical or current facts. They
often involve use of words such as expects, may, should, will,
believes, anticipates, estimates, projects, intends, plans,
targets or approximately, or similar words or terminology. They
may use the positive, negative or another variation of those and
similar words. These forward-looking statements are based on
our current expectations and assumptions and are not
guarantees of future events or performance. The realization of
our expectations and the accuracy of our assumptions are
subject to a number of risks and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. The factors listed below and those
described under Risk Factors and Management’s Discussion
and Analysis of Financial Condition and Results of Operations
(MD&A), as well as other factors not described herein because
they are not currently known to us or we currently judge them to
be immaterial, may cause our actual results to differ
significantly from our forward-looking statements. There is no
guarantee that any of the events anticipated by our forward-
looking statements will occur. Or if any of the events occur,
there is no guarantee what effect it will have on our operations,
cash flows, or financial condition. We undertake no obligation
to update our forward-looking statements after the date of this
report.

RISKS, UNCERTAINTIES AND ASSUMPTIONS

Major risks and uncertainties, and assumptions that we make,
that affect our business and may cause actual results to differ

materially from the content of these forward-looking statements
include, but are not limited to:

•the effect of general economic conditions, including

employment rates, interest rate levels, housing starts,
general availability of financing for home mortgages and the
relative strength of the U.S. dollar;

•the effect of COVID-19 and other viral or disease outbreaks
and their potential effects on our business, results of
operations, cash flows, financial condition and future
prospects;

•market demand for the company’s products, including market
demand for our timberland properties with higher and better
uses, which is related to, among other factors, the strength
of the various U.S. business segments and U.S. and
international economic conditions;

•changes in currency exchange rates, particularly the relative
value of the U.S. dollar to the Japanese yen, the Chinese
yuan, and the Canadian dollar, and the relative value of the
euro to the yen;

•restrictions on international trade and tariffs imposed on

imports or exports;

•the availability and cost of shipping and transportation;
•economic activity in Asia, especially Japan and China;
•performance of our manufacturing operations, including

maintenance and capital requirements;

•potential disruptions in our manufacturing operations;
•the level of competition from domestic and foreign producers;
•the successful execution of our internal plans and strategic

initiatives, including restructuring and cost reduction
initiatives;

•the successful and timely execution and integration of our

strategic acquisitions, including our ability to realize expected
benefits and synergies, and the successful and timely
execution of our strategic divestitures, each of which is
subject to a number of risks and conditions beyond our
control including, but not limited to, timing and required
regulatory approvals;

•raw material availability and prices;
•the effect of weather;
•changes in global or regional climate conditions and

governmental response to such changes;

•the risk of loss from fires, floods, windstorms, hurricanes,

pest infestation and other natural disasters;

•energy prices;
•transportation and labor availability and costs;
•federal tax policies;
•the effect of forestry, land use, environmental and other

governmental regulations;

•legal proceedings;
•performance of pension fund investments and related

derivatives;

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

21

•the effect of timing of employee retirements and changes in
the market price of our common stock on charges for share-
based compensation;

•the accuracy of our estimates of costs and expenses related
to contingent liabilities and the accuracy of our estimates of
charges related to casualty losses;
•changes in accounting principles and
•other factors described in this report under Risk Factors and

Management’s Discussion and Analysis of Financial
Condition and Results of Operations (MD&A).

RISK FACTORS
We are subject to various risks and events that could adversely
affect our business, our financial condition, our results of
operations, our cash flows and the price of our common stock.

You should consider the following risk factors, in addition to the
information presented elsewhere in this report, particularly in
Our Business, Forward-Looking Statements and Management’s
Discussion and Analysis of Financial Condition and Results of
Operations (MD&A), as well as in the filings we make from time
to time with the SEC, in evaluating us, our business and an
investment in our securities.

The risks discussed below are not the only risks we face. Additional
risks not currently known to us or that we currently deem immaterial
also may adversely affect our business, our financial condition, our
results of operations, our cash flows and the price of our common
stock.

RISKS RELATED TO OUR BUSINESS AND
INDUSTRY

MARKET AND OTHER EXTERNAL RISKS

The industries in which we operate are sensitive to
macroeconomic conditions and consequently are highly cyclical.

The overall levels of demand for the products we manufacture and
distribute reflect fluctuations in levels of end-user demand, which
consequently affect our sales and profitability. End-user demand
depends in large part on general macroeconomic conditions, both
in the U.S. and globally, as well as on local economic conditions.
The length and magnitude of industry cycles vary over time, both
by market and by product, but generally reflect changes in
macroeconomic conditions and levels of industry capacity. Any
decline or stagnation in macroeconomic conditions could cause
us to experience lower sales volume and reduced margins for our
products.

Low demand for new homes and home repair and remodeling
can adversely affect our business, results of operations and
cash flows.

Our business is particularly dependent upon the health of the U.S.
housing market, and specifically on demand for new

22

homes and home repair and remodeling. Demand in these
markets is sensitive to changes in economic conditions such
as the level of employment, consumer confidence, consumer
income, the availability of financing and interest rate levels.
Other factors that could limit or adversely affect demand for
new homes and home repair and remodeling, and hence
demand for our products, include factors such as changes in
consumer preferences, limited wage growth, increases in
non-mortgage consumer debt, any weakening in consumer
confidence, as well as any increase in foreclosure rates and
distress sales of houses.

Catastrophic events may adversely affect the markets for our
products and our business, results of operations, cash flows
and financial condition.

We are subject to the risk of various catastrophic events,
including but not limited to the occurrence of significant fires on
one or more of our properties, severe regional or local weather
events or trends, major earthquakes, significant geopolitical
conditions or developments such as significant international
trade disputes, terrorist attacks, armed conflict, domestic
political unrest and regional health epidemics or global health
pandemics. Any one or more of these events or conditions, or
other catastrophic events or developments, could significantly
affect our ability to operate our businesses and adversely affect
domestic and global general economic conditions and thus
market demand for our products.

In March 2020, the World Health Organization declared the
outbreak of a novel strain of coronavirus (“COVID-19”) a global
pandemic. In response, federal, state and local governments in
the United States, as well as governments throughout the
world, declared states of emergency and ordered preventative
measures to contain and mitigate the spread of the virus.
These measures, which have included shelter-in-place and
similar mandates for individuals and closure or significant
curtailment of many businesses, have caused significant
economic disruption and uncertainty as well as disruption and
volatility in global capital markets. As a result, there have been
periodic adverse effects on the demand for our timber and
wood products and disruptions to our supply chain and the
manufacturing, distribution and export of our timber and wood
products, all of which could worsen in the future. Any one or
more of these consequences of COVID-19, as well as other
unpredictable events, could materially adversely affect our
business, results of operations, cash flows and financial
condition. The COVID-19 outbreak continues to rapidly evolve,
with periods of improvement followed by periods of higher
infection rates in various geographical locations throughout the
world. The extent to which COVID-19 may further affect our
business, results of operations, cash flows and financial
condition, as well as our plans and decisions relating to various

capital expenditures, other discretionary items and capital
allocation priorities, including the timing and amount of our
dividends to shareholders, are therefore highly uncertain and
will depend on future developments, which cannot be predicted
with confidence. Such developments include, but are not
limited to, the future rate of occurrence or mutation of
COVID-19 or the outbreak of another virulent disease,
continuation of or changes in governmental responses to
disease outbreak, the duration of disease outbreak and
consequential restrictions, business disruptions, the
effectiveness of responsive government actions to contain and
manage the disease, and the timing and effectiveness of
treatment and testing options, including the efficacy and
availability of vaccines.

The impacts of the COVID-19 outbreak and related restrictions
have led to a significant increase in national unemployment
since the outset of the pandemic. An extended continuation or
worsening of domestic unemployment may adversely affect
demand for our products and thus negatively impact our
business, results of operations, cash flows and financial
condition. In addition, the impact of COVID-19 or other virulent
disease may also trigger the occurrence, or exacerbate, other
risks discussed herein, any one of which could have a material
adverse effect on our business, results of operations, cash
flows and financial condition. For more discussion on the
current effects of COVID-19 on our business
and operations, see our discussion under Management’s Discussion
and Analysis of Financial Condition and Results of Operations (MD&A) –
Economic and Market Conditions Affecting our Operations.

Homebuyers’ ability to qualify for and obtain affordable
mortgages could be affected by changes in interest rates,
changes in home loan underwriting standards and government
sponsored entities and private mortgage insurance companies
supporting the mortgage market.

Access to affordable mortgage financing is critical to the health
of the U.S. housing market. Generally, increases in interest
rates make it more difficult for home buyers to obtain mortgage
financing, which could negatively affect demand for housing
and, in turn, negatively affect demand for our wood products.
Interest rates have remained at historically low levels for an
extended period of time, although the U.S. Federal Reserve has
made both upward and downward adjustments in recent years.
We cannot predict the timing, number, extent or direction of
future rate adjustments.

Along with prevailing interest rates, other significant factors
affecting the demand for new homes relate to the ability of
home buyers to obtain mortgage financing. During the last U.S.
recession, credit requirements for home lending were severely
tightened and the number of mortgage loans available for
financing home purchases were thereby severely reduced.

Although the availability of credit has improved since that time,
the housing market could be limited or adversely affected if
credit requirements were to again tighten or become more
restrictive for any reason.

Additionally, the liquidity provided to the mortgage industry by
Fannie Mae and Freddie Mac, both of which purchase home
mortgages and mortgage-backed securities originated by
mortgage lenders, has been critical to the home lending
market. Any political or other developments that would have the
effect of limiting or restricting the availability of financing by
these government sponsored entities could also adversely
affect interest rates and the availability of mortgage financing.
Whether resulting from direct increases in borrowing rates,
tightened underwriting standards on mortgage loans or reduced
federal support of the mortgage lending industry, a challenging
mortgage financing environment could reduce demand for
housing and, therefore, adversely affect demand for our
products.

Changes in regulations relating to tax deductions for
mortgage interest expense and real estate taxes could harm
our future sales and earnings.

Significant costs of homeownership include mortgage interest
expense and real estate taxes, both of which are generally
deductible for an individual’s federal and, in some cases, state
income taxes. Recent federal legislation reduced the amount of
mortgage interest and real estate taxes that certain taxpayers
may deduct. These and any similar changes to income tax laws
by the federal government or by a state government to
eliminate or substantially reduce these income tax deductions,
or any significant increase in real property taxes by local
governments, may increase the cost of homeownership and
thus could adversely affect the demand for our products.

PRODUCT PRICING AND PROFITABILITY

Our profitability is affected by market dynamics outside of our
control.

Because commodity products have few distinguishing
properties from producer to producer, competition for these
products is based primarily on price, which is determined by
supply relative to demand and competition from substitute
products. Prices for our products are also affected by many
other factors outside of our control. As a result, we have little
influence or control over the timing and extent of price changes,
which often are volatile in our industry. Moreover, our profit
margins with respect to these products depend, in part, on
managing our costs, particularly raw material, labor (including
contract labor) and energy costs, which represent significant
cost components that also fluctuate based upon market and
other factors beyond our control.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

23

Excess supply of logs and wood products may adversely affect
prices and margins.

Producers in our industry have in the past put downward
pressure on product pricing by selling excess supply into the
market. Our industry may increase harvest levels, which could
lead to an oversupply of logs. Wood products producers may
likewise expand manufacturing capacity, which could lead to an
oversupply of manufactured wood products. Any such increases
of industry supply to our markets could adversely affect our
prices and margins.

THIRD-PARTY SERVICE PROVIDERS

We depend heavily on third parties for logging and
transportation services, and any increase in the cost or any
disruption in the availability of these services could materially
adversely affect our business and operations and our financial
results.

Our businesses depend heavily on the availability of third-party
service providers for the harvest of our timber and the
transportation of our wood products and wood fiber. We are
therefore considerably affected by the availability and cost of
these services. Any significant increase in the operating costs
to our service providers, including without limitation an increase
in the cost of fuel or labor, could have a material negative
effect on our financial results by increasing the cost of these
services to us, as well as result in an overall reduction in the
availability of these services altogether.

Our third-party transportation providers are also subject to
several events outside of their control, such as disruption of
transportation infrastructure, labor issues and natural
disasters. Any failure of a third-party transportation provider to
timely deliver our products, including delivery of our wood
products and wood fiber to our customers and delivery of wood
fiber to our mills, could harm our supply chain, negatively affect
our customer relationships and have a material adverse effect
on our financial condition, results of operations, cash flows and
our reputation.

As a result of weak business conditions in the timber industry
that persisted for several years, there are fewer third-party
service providers in certain markets to harvest and deliver our
logs. This shortage has resulted in an overall increase in
logging and hauling costs and, in some
cases, compromised the general availability of these contractors. Any
increase in harvest levels due to positive changes in macroeconomic
conditions driving demand for logs could further strain the existing
supply of third-party logging and hauling service providers. This, in turn,
could increase the cost of log supply and delivery, or prevent us from
fully capitalizing on favorable market conditions by limiting our ability to
access and deliver our logs to market.

MANAGING COMMERCIAL TIMBERLANDS RISKS

Our ability to harvest and deliver timber may be subject to
limitations which could adversely affect our results of
operations and cash flows.

Our primary assets are our timberlands. Weather conditions,
timber growth cycles, access limitations, and availability of
contract loggers and haulers may adversely affect our ability to
harvest our timberlands. Other factors that may adversely affect
our timber harvest include damage to our standing timber by
fire or by insect infestation, disease, prolonged drought,
flooding, severe weather and other natural disasters. As
discussed in more detail in the following risk factors, changes
in global climate conditions could intensify the severity and rate
of occurrence of any one or more of these risks that we
currently face. Although damage from such causes usually is
localized and affects only a limited percentage of standing
timber, there can be no assurance that any damage affecting
our timberlands will in fact be limited. As is common in the
forest products industry, we do not maintain insurance
coverage for damage to our timberlands. Our revenues, net
income and cash flow from operations are dependent to a
significant extent on the pricing of our products and our
continued ability to harvest timber at adequate levels.
Therefore, if we were to be restricted from harvesting on a
significant portion of our timberlands for a prolonged period of
time, or if material damage to a significant portion of our
standing timber were to occur, we could suffer materially
adverse effects to our results of operations and cash flows.

Future timber harvest levels may also be affected by our ability
to timely and effectively replant harvested areas, which
depends on several factors including changes in estimates of
long-term sustainable yield because of silvicultural advances,
natural disasters, fires, pests, insects and other hazards,
regulatory constraints, availability of contractors and other
factors beyond our control.

Timber harvest activities are also subject to a number of
federal, state and local regulations pertaining to the protection
of fish, wildlife, water and other resources. Regulations,
government agency policy and guidelines, and litigation, can
restrict timber harvest activities and increase costs. Examples
include federal and state laws protecting threatened,
endangered and “at-risk” species, harvesting and forestry road
building activities that may be restricted under the U.S. Federal
Clean Water Act, state forestry practices laws, laws protecting
aboriginal rights, and other similar regulations.

Our estimates of timber inventories and growth rates may be
inaccurate and include risks inherent in calculating such
estimates, which may impair our ability to realize expected
revenues.

24

Whether in connection with managing our existing timberland
portfolio or assessing potential timberland acquisitions, we
make and rely on important estimates of merchantable timber
inventories. These include estimates of timber inventories that
may be lawfully and economically harvested, timber growth
rates and end-product yields. Timber growth rates and yield
estimates are developed by forest biometricians and other
experts using statistical measurements of tree samples on
given property. These estimates are central to forecasting our
anticipated timber harvests, revenues and expected cash flows.
While the company has confidence in its timber inventory
processes and the professionals in the field who administer it,
future growth and yield estimates are inherently inexact and
uncertain and subject to many external variables that could
further affect their accuracy. These include, among other
things, disease, infestation, natural disasters and changes in
weather patterns. If these estimates are inaccurate, our ability
to manage our timberlands in a sustainable or profitable
manner may be compromised, which may cause our results of
operations, cash flows and our stock price to be adversely
affected.

Our operating results and cash flows will be materially
affected by supply and demand for timber.

A variety of factors affect prices for timber, including available
supply, changes in economic conditions that affect demand,
the level of domestic new construction and remodeling activity,
interest rates, credit availability, population growth, weather
conditions and pest infestation, and other factors. These
factors vary by region, by timber type (i.e., sawlogs or pulpwood
logs) and by species.

Timber prices are affected by changes in demand on a local,
national and international level. The closure of a mill in a region
where we own timber could have a material adverse effect on
demand in that region, and therefore pricing. For example, as
the demand for paper continues to decline, closures of pulp
mills in some of our operating regions have adversely affected
the regional demand for pulpwood and wood chips. Additionally,
some of our Asian log export markets, particularly China, have
a history of significant volatility. Lower demand for our export
logs could have a negative effect on timber prices, particularly
in the western region.

Timber prices are also affected by changes in timber supply and
availability at the local, national and international level. Our
timberland ownership is concentrated in Alabama, Arkansas,
Louisiana, Mississippi, North Carolina, Oklahoma, Oregon and
Washington. In some of these states, much of the timberland
is privately owned. Increases in timber prices often result in
substantial increases in harvesting on private timberlands,
including lands not previously made available for commercial
timber operations, causing a short-term increase in supply that

moderates such price increases. In western states such as
Oregon and Washington, where a greater proportion of
timberland is government-owned, any substantial increase in
timber harvesting from government-owned land could
significantly reduce timber prices. On a local level, timber
supplies can fluctuate depending on factors such as changes in
weather conditions and harvest strategies of local timberland
owners, as well as occasionally high timber salvage efforts due
to events such as pest infestations, fires or other natural
disasters. Demand for timber in foreign markets can fluctuate
due to a variety of factors as well, including but not limited to:
changes in the fundamental economic conditions that affect
demand for logs in a given export market country or region; any
substantial increase in supply of logs from local or regional
sources, including such sources that periodically supply large
amounts of salvage timber as a result of disease or infestation,
and other factors.

Timberlands make up a significant portion of our business
portfolio and we are therefore subject to real estate
investment risks.

Our real property holdings are primarily timberlands and we may
make additional timberlands acquisitions in the future. As the
owner and manager of approximately 11 million acres of
timberlands, we are subject to the risks that are inherent in
concentrated real estate investments. A downturn in the real
estate industry generally, or the timber or forest products
industries specifically, could reduce the value of our properties
and adversely affect our results of operations and cash flows.
Such a downturn could also adversely affect our customers and
reduce the demand for our products, as well as our ability to
execute upon our strategy of selling nonstrategic timberlands
and timberland properties that have higher and better uses at
attractive prices. These risks may be more pronounced than if
we diversified our investments outside of real property
holdings.

MANUFACTURING AND SELLING WOOD PRODUCTS
RISKS

A material disruption at one of our manufacturing facilities
could prevent us from meeting customer demand, reduce our
sales, and negatively affect our results of operation and
financial condition.

Any of our manufacturing facilities, or any of our machines
within an otherwise operational facility, could cease operations
unexpectedly due to a number of events, including:

•unscheduled maintenance outages;
•prolonged power failures;
•equipment failure;
•chemical spill or release;

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

25

•explosion of a boiler;
•fires, floods, windstorms, earthquakes, hurricanes or other
severe weather conditions or catastrophes, affecting the
production of goods or the supply of raw materials (including
fiber);

•the effect of drought or reduced rainfall on water supply;
•labor difficulties;
•disruptions in transportation or transportation infrastructure,
including roads, bridges, rail, tunnels, shipping and port
facilities;

•terrorism or threats of terrorism;
•cyber attack;
•governmental regulations;
•other operational problems and
•effects of viral or disease outbreaks and any resulting

epidemic or global pandemic.

We cannot predict the duration of any such downtime or extent
of facility damage. If one of our facilities or machines were to
incur significant downtime, our ability to meet our production
targets and satisfy customer demand could be impaired,
resulting in lower sales and income. Additionally, we may be
required to make significant unplanned capital expenditures.
Although some risks are not insurable and some coverage is
limited, we purchase insurance on our manufacturing facilities
for damage from fires, floods, windstorms, earthquakes,
equipment failures and boiler explosions. Such insurance may
not be sufficient to recover all of our damages.

Some of our wood products are vulnerable to declines in
demand due to competing technologies or materials.

Our products compete with non-fiber based alternatives or with
alternative products in certain market segments. For example,
plastic, wood/plastic or composite materials may be used by
builders as alternatives to our wood products such as lumber,
veneer, plywood and oriented strand board. Changes in prices
for oil, chemicals and wood-based fiber can change the
competitive position of our products relative to available
alternatives and could increase substitution of those products
for our products. If use of these or other alternative products
grows, demand for and pricing of our products could be
adversely affected.

Our results of operations, cash flows and financial condition
could be materially adversely affected by changes in product
mix or pricing.

Our results may be materially adversely affected by a change in
our product mix or pricing. Some of our wood products, such as
lumber, veneer, plywood and oriented strand board, are
commodities and are subject to fluctuations in market pricing. If
pricing on our commodity products decreases and if we are not
successful in increasing sales of higher-priced, higher-value

26

products, or if we are not successful in implementing price
increases, or there are delays in acceptance of price increases
or higher-priced products, our results of operations, cash flows
and financial condition could be materially and adversely
affected. Price discounting, if required to maintain our
competitive position in one or more markets, could result in
lower than anticipated price realizations and margins.

We face intense competition in our markets; any failure to
compete effectively could have a material adverse effect on
our business, financial condition and results of operations.

We compete with North American producers and, for some of
our product lines, global producers, some of which may have
greater financial resources and lower production costs than we
do. The principal basis for competition for many of our products
is selling price. Our industries also are particularly sensitive to
other factors including innovation, design, quality and service,
with varying emphasis on these factors depending on the
product line. To the extent that any of our competitors are more
successful with respect to any key competitive factor, our ability
to attract and retain customers and maintain and increase
sales could be materially adversely affected. Any failure to
compete effectively could have a material adverse effect on our
business, financial condition and results of operations.

Competition from lumber imports could vary significantly and
have a material effect on U.S. lumber and timber prices.

The future amount and pricing of lumber imports entering U.S.
markets remain uncertain. Historically, Canada has been the
most significant source of lumber for the U.S. market,
particularly in the new home construction market. We produce
lumber in our Canadian mills, but the bulk of our lumber
production is in the U.S. There have been many disputes and
subsequent trade agreements regarding sales of softwood
lumber between Canada and the U.S. The last agreement,
which required Canadian softwood lumber facilities, including
our mills, to pay an export tax when the price of lumber is at or
below a threshold price, expired in October 2015. Since that
time, the U.S. Department of Commerce has issued
countervailing and antidumping duties on softwood lumber
imports from Canada based on findings of injury to U.S. lumber
producers.

We are not able to predict when, or if, a new softwood lumber
agreement will be reached or, if reached, what the terms of the
agreement would be. Similarly, we are not able to predict if the
current U.S. policy of imposing import duties on Canadian
softwood lumber will continue. We could, therefore, experience
significant downward pressure on timber and lumber prices
caused by Canadian lumber imports.

Customer demand for certain brands of sustainably-produced
products could reduce competition among buyers for our
products or cause other adverse effects.

We have adopted the Sustainable Forestry Initiative (SFI)
standard for wood fiber supplied to our manufacturing facilities,
both from our timberlands and from third-party suppliers. If
customer preference for a sustainability standard other than
SFI increases, or if the SFI standard falls into disfavor, there
may be reduced demand and lower prices for our products
relative to competitors who can supply products sourced from
forests certified to competing certification standards. If we seek
to comply with such other standards, we could incur materially
increased costs for our operations or be required to modify our
operations, such as reducing harvest levels. FSC, in particular,
employs standards that are geographically variable and could
cause a material reduction in the harvest levels of some of our
timberlands, most notably in the Pacific Northwest.

Our business and operations could be materially adversely
affected by changes in the cost or availability of raw materials
and energy.

We rely heavily on certain raw materials (principally wood fiber
and chemicals) and energy sources (principally natural gas,
electricity and fuel oil) in our manufacturing processes. Our
ability to increase earnings has been, and will continue to be,
affected by changes in the costs and availability of such raw
materials and energy sources. We may not be able to fully
offset the effects of higher raw material or energy costs through
price increases, productivity improvements, cost-reduction
programs or hedging arrangements.

PHYSICAL RISKS RELATED TO CLIMATE CHANGE

Changes in global or regional climate conditions could
significantly harm our timberland assets and have a negative
impact on our results of operations, cash flow and profitability
of our operations.

Climate change has the potential to cause significant
disruptions to our business and results of operations, cash flow
and profitability. There is increasing concern that increases in
global average temperatures caused by increased
concentrations of carbon dioxide and other greenhouse gases
in the atmosphere could cause significant changes in weather
patterns, including changes to precipitation patterns and
growing seasons. These changes could, in the long term and in
some locations, lead to slower growth of our trees and,
potentially, changes to the species mix that we manage in our
timber assets. An increase in global temperature could also
lead to an increase in the frequency and severity of extreme
weather events and other natural disasters. Thus, damage or
access to our timberland assets by existing causes, such as

fire, insect infestation, disease, prolonged drought, flooding,
windstorms and other natural disasters, could be significantly
worsened by climate change. Any one or more of these negative
effects on commercial timberland operations from climate
change, both our own and that of other commercial timberland
operators, could also have a material adverse impact on our
wood products business by significantly affecting the
availability, cost and quality of the wood fiber used in our mill
operations.

WORKFORCE RISK

Our business is dependent upon attracting, retaining and
developing key personnel.

Our success depends, to a significant extent, upon our ability to
attract, retain and develop senior management, operations
management and other key personnel. Our financial condition
or results of operations could be significantly adversely affected
if we were to fail to recruit, retain, and develop such personnel,
or if there were to occur any significant increase in the cost of
providing such personnel with competitive total compensation
and benefits.

A strike or other work stoppage, or our inability to renew
collective bargaining agreements on favorable terms, could
adversely affect our financial results.

As of December 31, 2020, a significant number of employees
in our Western Timberlands and Wood Products businesses
were covered by collective bargaining agreements. If these
workers were to engage in a strike or other work stoppage, or if
our non-unionized operations were to become unionized, we
could experience a significant disruption of operations at our
facilities or higher ongoing labor costs. A significant customer
or supplier strike or other work stoppage could also have
similar effects on us.

PENSION PLAN LIABILITY RISK

Investment returns on our pension assets may be lower than
expected, or interest rates may decline, requiring us to make
significant additional cash contributions to our benefit plans.

A portion of our current and former employees have accrued
benefits under our defined benefit pension plans. Although the
plans are not open to employees hired on or after January 1,
2014, current employees hired before that time continue to
accrue benefits. Requirements for funding our pension plan
liabilities are based on a number of actuarial assumptions,
including the expected rate of return on our plan assets and the
discount rate applied to our pension plan obligations.
Fluctuations in equity market returns and changes in long-term
interest rates could increase our costs under our defined

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

27

benefit pension plans and may significantly affect future
contribution requirements. It is unknown what the actual
investment return on our pension assets will be in future years
and what interest rates may be at any given point in time. We
cannot therefore provide any assurance of what our actual
pension plan costs will be in the future, or whether we will be
required under applicable law to make future material plan
contributions. See Note 9: Pension and Other Post-Employment
Benefit Plans for additional information about these plans,
including funding status.

STRATEGIC INITIATIVES AND EXECUTION RISK

Our business and financial results may be adversely affected if
we are unable to successfully execute on important strategic
initiatives.

Our strategic initiatives are designed to improve our results of
operations and drive long-term shareholder value. These
initiatives include, among others, optimizing cash flow through
operational excellence, reducing costs to achieve industry-
leading cost structure and innovating in higher-margin
products. There can be no assurance that we will be able to
successfully implement any one or more of our important
strategic initiatives in accordance with our expectations, which
could result in an adverse effect on our business and financial
results.

We may be unsuccessful in carrying out our acquisition
strategy.

We intend to strategically pursue acquisitions and strategic
divestitures when market conditions warrant. As with any
investment, our acquisitions may not perform in accordance
with our expectations. In addition, we anticipate financing such
acquisitions through cash from operations, borrowings under
our unsecured credit facilities, proceeds from equity or debt
offerings or proceeds from strategic asset dispositions, or any
combination thereof. Our inability to finance future acquisitions
on favorable terms, or at all, could adversely affect our ability to
successfully execute strategic acquisitions and thereby
adversely affect our results of operations.

FOREIGN CURRENCY RISK

We will be affected by changes in currency exchange rates.

We have manufacturing operations in Canada. We are also an
exporter and compete with global producers of products very
similar to ours. Therefore, we are affected by changes in the
strength of the U.S. dollar, particularly relative to the Canadian
dollar, euro, yuan and yen, and the strength of the euro relative
to the yen. Changes in exchange rates could materially and
adversely affect our sales volume, margins and results of
operations.

28

LEGAL, REGULATORY AND TAX RISKS

ENVIRONMENTAL LAWS AND REGULATIONS

We could incur substantial costs as a result of compliance
with, violations of, or liabilities under applicable
environmental laws and other laws and regulations.

We are subject to a wide range of general and industry-specific
laws and regulations relating to the protection of the
environment, including those governing:

•air emissions,
•wastewater discharges,
•harvesting,
•silvicultural activities, including use of pesticides and

herbicides,

•forestry operations and endangered species habitat

protection,

•surface water management,
•the storage, usage, management and disposal of hazardous

substances and wastes,

•the cleanup of contaminated sites,
•landfill operation and closure obligations,
•building codes and
•health and safety matters.
We have incurred, and we expect to continue to incur,
significant capital, operating and other expenditures complying
with applicable environmental laws and regulations and as a
result of remedial obligations, and there can be no assurances
that existing reserves for specific matters will be adequate to
cover future costs. We also could incur substantial costs, such
as civil or criminal fines, sanctions and enforcement actions
(including orders limiting our operations or requiring corrective
measures, installation of pollution control equipment or other
remedial actions), cleanup and closure costs, and third-party
claims for property damage and personal injury as a result of
violations of, or liabilities under, environmental laws and
regulations.

As the owner and operator of real estate, we may be liable
under environmental laws for cleanup, closure and other
damages resulting from the presence and release of hazardous
substances on or from our properties or operations. In addition,
surface water management regulations may present liabilities
and are subject to change. The amount and timing of
environmental expenditures is difficult to predict, and in some
cases, our liability may exceed forecasted amounts or the value
of the property itself. The discovery of additional contamination
or the imposition of additional cleanup obligations at our sites
or third-party sites may result in significant additional costs.

We also lease some of our properties to third-party operators
for the purpose of exploring, extracting, developing and
producing oil, gas, rock and other minerals in exchange for fees
and royalty payments. These activities are also subject to
federal, state and local laws and regulations. These operations
may create risk of environmental liabilities for any unlawful
discharge of oil, gas or other chemicals into the air, soil or
water. Generally, these third-party operators indemnify us
against any such liability, and we require that that they maintain
liability insurance during the term of our lease with them.
However, if for any reason our third-party operators are not able
to honor their indemnity obligation, or if the required liability
insurance were not in effect, then it is possible that we could
be deemed responsible for costs associated
with environmental liability caused by such third-party
operators.

Any material liability we incur as a result of activities conducted
on our properties by us or by others with whom we have a
business relationship could adversely affect our financial
condition.

We also anticipate public policy developments at the state,
federal and international level regarding climate change and
energy access, security and competitiveness. As discussed
below, we expect these developments to address emission of
carbon dioxide, renewable energy and fuel standards, and the
monetization of carbon. These developments may also include
mandated changes to energy use and building codes which
could affect homebuilding practices. Enactment of new
environmental laws or regulations or changes in existing laws or
regulations, or the interpretation of these laws or regulations,
might require significant expenditures. We also anticipate public
policy developments at the state, federal and international level
regarding taxes and a number of other areas that could require
significant expenditures.

LEGAL AND REGULATORY RISKS RELATED TO CLIMATE
CHANGE

Governmental response to climate change at the
international, federal and state levels may affect our results of
operations, cash flows and profitability.

There continue to be numerous international, U.S. federal and
state-level initiatives and proposals to address domestic and
global climate issues. Within the U.S. and Canada, some of
these proposals would regulate (and in some Canadian
provinces do regulate) and/or tax the production of carbon
dioxide and other greenhouse gases to facilitate the reduction
of carbon compound emissions into the atmosphere and
provide tax and other incentives to produce and use cleaner
energy. Climate change effects, if they occur, and governmental
initiatives, laws and regulations to address potential climate

concerns, could increase our costs and have a long-term
adverse effect on our businesses and results of operations.
Future legislation or regulatory activity in this area remains
uncertain, and its effect on our operations is unclear at this
time.

However, climate change legislation or related government
mandates, standards or regulations intended to mitigate or
reduce carbon compound, greenhouse gas emissions or other
climate change effects could have significant adverse effects
on our business and operations. Any one or more of such new
legal requirements and regulations could, for example,
significantly increase the costs for our mills to comply with
stricter air emissions regulations. They could also limit harvest
levels for commercial timberland operators, which could in turn
adversely affect our timberland operations as well as potentially
lead to significant increases in the cost of energy, wood fiber
and other raw materials for our wood products businesses. Any
one or more of these developments, as well as other
unforeseeable governmental responses to climate change,
could have a material adverse effect on our results of
operations, cash flows and profitability.

LEGAL MATTERS

We are involved in various environmental, regulatory, product
liability and other legal matters, disputes and proceedings
that, if determined or concluded in a manner adverse to our
interests, could have a material adverse effect on our
financial condition.

We are, from time to time, involved in a number of legal
matters, disputes and proceedings (legal matters), some of
which involve on-going litigation. These include, without
limitation, legal matters involving environmental clean-up and
remediation, warranty and non-warranty product liability claims,
regulatory issues, contractual and personal injury claims and
other legal matters. In some cases, all or a portion of any loss
we experience in connection with any such legal matters will be
covered by insurance; in other cases, any such losses will not
be covered.

The outcome, costs and other effects of current legal matters
in which we are involved, and any related insurance recoveries,
cannot be determined with certainty. Although the disclosures
in Note 14: Legal Proceedings, Commitments and
Contingencies and Note 20: Income Taxes contain
management’s current views of the effect such legal matters
could have on our financial results, there can be no assurance
that the outcome of such legal matters will be as currently
expected. It is possible that there could be adverse judgments
against us in some or all major litigation matters against us,
and that we could be required to take a charge and make cash
payments for all or a portion of any related awards of damages.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

29

Any one or more of such charges or cash payment could
materially and adversely affect our results of operations or cash
flows for the quarter or year in which we record or pay it.

REIT STATUS AND TAX IMPLICATIONS

If we fail to remain qualified as a REIT, our taxable income
would be subject to tax at corporate rates and we would not
be able to deduct dividends to shareholders.

In any taxable year in which we fail to qualify as a REIT, unless
we are entitled to relief under the Internal Revenue Code:

•We would not be allowed to deduct dividends to shareholders

in computing our taxable income.

•We would be subject to federal and state income tax on our

taxable income at applicable corporate rates.

•We also would be disqualified from treatment as a REIT for

the four taxable years following the year during which we lost
qualification.

Qualification as a REIT involves the application of highly
technical and complex provisions of the Internal Revenue Code
to our operations and the determination of various factual
matters and circumstances not entirely within our control. There
are only limited judicial or administrative interpretations of
these provisions. Although we operate in a manner consistent
with the REIT qualification rules, we cannot assure you that we
are or will remain so qualified.

Certain of our business activities are subject to corporate-
level income tax and potentially subject to prohibited
transactions tax.

Under the Internal Revenue Code, REITs generally must engage
in the ownership and management of income producing real
estate. For the company, this generally includes owning and
managing a timberland portfolio for the production and sale of
standing timber. Any activities that generate non-qualifying REIT
income could constitute “prohibited transactions.” Prohibited
transactions are defined by the Internal Revenue Code generally
to be sales or other dispositions of property to customers in
the ordinary course of a trade or business. Accordingly, the
harvesting and sale of logs, the development or sale of certain
timberlands and other real estate, and the manufacture and
sale of wood products are conducted through one or more of
our wholly-owned TRSs, the net income of which is subject to
corporate-level tax. By conducting our business in this manner,
we believe that we satisfy the REIT requirements of the Internal
Revenue Code. However, if the Internal Revenue Service (IRS)
were to successfully assert that these or any of our activities
conducted at the REIT constituted prohibited transactions, we
could be subject to the 100 percent tax on the net income from
such activities.

30

The extent of our use of our TRSs may affect the price of our
common shares relative to the share price of other REITs.

We conduct a significant portion of our business activities
through one or more TRSs. The use of our TRSs enables us to
engage in non-REIT qualifying business activities such as the
harvesting and sale of logs, manufacture and sale of wood
products, and the development and sale of certain higher and
better use (HBU) property. Our TRSs are subject to corporate-
level income tax. Under the Code, no more than 20 percent of
the value of the gross assets of a REIT may be represented by
securities of one or more TRSs. This limitation may affect our
ability to increase the size of our TRSs’ operations.
Furthermore, our use of TRSs may cause the market to value
our common shares differently than the shares of other REITs,
which may not use TRSs at all, or as extensively as we use
them.

We may be limited in our ability to fund distributions using
cash generated through our TRSs.

The ability of the REIT to receive dividends from our TRSs is
limited by the rules with which we must comply to maintain our
status as a REIT. In particular, at least 75 percent of gross
income for each taxable year as a REIT must be derived from
real estate sources including sales of our standing timber and
other types of qualifying real estate income, and no more than
25 percent of our gross income may consist of dividends from
our TRSs and other non-real estate income. This limitation on
our ability to receive dividends from our TRSs may affect our
ability to fund cash distributions to our shareholders using cash
flows from our TRSs. The net income of our TRSs is not
required to be distributed, and income of our TRSs that is not
distributed to the REIT will not be subject to the REIT income
distribution requirement.

To maintain our qualification as a REIT, we are generally
required to distribute substantially all of our taxable income
to our shareholders.

Generally, REITs are required to distribute 90 percent of their
ordinary taxable income and 95 percent of their net capital
gains income. Capital gains may be retained by the REIT but
would be subject to corporate income taxes. If capital gains
were retained rather than distributed, our shareholders would
be deemed to have received a taxable distribution (about which
we would notify them), with a refundable credit for any federal
income tax paid by the REIT. Accordingly, we believe that we are
not required to distribute material amounts of cash since
substantially all of our taxable income is treated as capital
gains income. As previously discussed in these Risk Factors,
our board of directors, in its sole discretion, determines the
amount, timing and frequency of our dividends to shareholders.

Changes in tax laws or their interpretation could adversely
affect our shareholders and our results of operations.

Federal and state tax laws are constantly under review by persons
involved in the legislative process, the IRS, the United States
Department of the Treasury, and state taxing authorities. Changes to
tax laws could adversely affect our shareholders or increase our
effective tax rates. We cannot predict with certainty whether, when, in
what forms, or with what effective dates, the tax laws applicable to us
or our shareholders may be changed.

IMPORT/EXPORT TAXES AND DUTIES

We may be required to pay significant taxes or tariffs on our
exported products or countervailing and anti-dumping duties
or tariffs on our imported products.

We export logs and finished wood products to foreign markets,
and our ability to do so profitably is affected by U.S. and foreign
trade policy. International trade disputes occur frequently and
can be taken to an International Trade Court for resolution of
unfair trade practices between countries.

U.S. international trade policy could result in one or more of our
foreign export market jurisdictions adopting trade policy making
it more difficult or costly for us to export our products to those
countries. We could therefore experience reduced revenues and
margins in any of our businesses that is adversely affected by
international trade tariffs, duties, taxes, customs or dispute
settlement terms. To the extent such trade policies increase
prices, they could also reduce the demand for our products and
could have a material adverse effect on our business, financial
results and financial condition, including facility closures or
impairments of assets. We cannot predict future trade policy or
the terms of any settlements of international trade disputes
and their effect on our business.

OTHER RISKS

RISKS RELATED TO OWNING OUR STOCK

Our cash dividends are not guaranteed and may fluctuate.

Our board of directors, in its sole discretion, determines the
amount and timing of our cash dividends to shareholders based
on consideration of a number of factors. These factors include,
but are not limited to: our results of operations and cash flows;
current and forecasted economic conditions; changes in the
current or expected prices and demand for our products and
the general market demand for timberlands, including those
timberland properties that have higher and better uses; current
and forecasted harvest levels; balancing various capital
allocation priorities and considerations including without
limitation the company’s capital requirements and debt
repayment obligations; various finance considerations,

including the company’s credit ratings, borrowing capacity, debt
covenant restrictions that may impose limitations on cash
payments and other related factors and tax considerations.
Consequently, the amount, timing and frequency of our
dividends, including our quarterly base dividend and annual
supplemental dividend, may fluctuate.

The market price of our common stock may be influenced by
many factors, some of which are beyond our control.

The market price of our common stock may be influenced by
many factors, some of which are beyond our control, including
without limitation those described above and elsewhere in this
report, as well as the following:

•actual or anticipated fluctuations in our operating results or

our competitors’ operating results;

•announcements by us or our competitors of new products,
capacity changes, significant contracts, acquisitions or
strategic investments;

•our growth rate and our competitors’ growth rates;
•general economic conditions;
•conditions in the financial markets;
•market interest rates and the relative yields on other

financial instruments;

•general perceptions and expectations regarding housing

markets, interest rates, commodity prices, and currencies;
•changes in stock market analyst recommendations regarding
us, our competitors or the forest products industry generally,
or lack of analyst coverage of our common stock;
•sales of our common stock by our executive officers,

directors and significant shareholders;

•sales or repurchases of substantial amounts of common

stock;

•changes in accounting principles and
•changes in tax laws and regulations.
In addition, there has been significant volatility in the market
price and trading volume of securities of companies, including
companies operating in the forest products industry, that often
has been unrelated to individual company operating
performance. Some companies that have experienced volatile
market prices for their securities have had securities litigation
brought against them. If litigation of this type is brought against
us, it could result in substantial costs and divert management’s
attention and resources.

CAPITAL MARKETS RISKS

Deterioration in economic conditions and capital markets
could adversely affect our access to capital.

Challenging market conditions could impair the company’s
ability to raise debt or equity capital or otherwise access capital

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

31

markets on terms acceptable to us, which may, among other
effects, reduce our ability to refinance debt maturities or take
advantage of growth and expansion opportunities. Moreover,
our businesses require substantial capital for repair or
replacement of existing facilities or equipment. While we
believe our capital resources will be adequate to meet our
current projected operating needs, capital expenditures and
other cash requirements, if for any reason we are unable to
access capital for our operating needs, capital expenditures
and other cash requirements on acceptable economic terms, or
at all, we could experience a material adverse effect on our
business, financial condition, results of operations and cash
flows.

Changes in credit ratings issued by nationally recognized
rating organizations could adversely affect our cost of
financing and have an adverse effect on the market price of
our securities.

Credit rating agencies rate our debt securities on factors that
include our operating results and balance sheet, actions that
we take, their view of the general outlook for our industry and
their view of the general outlook for the economy. Ratings
decisions by these agencies include maintaining, upgrading or
downgrading our current rating, as well as placing the company
on a “watch list” for possible future ratings actions. Any
downgrade of our credit rating, or decision by a rating agency to
place us on a “watch list” for possible future downgrading could
have an adverse effect on our ability to access credit markets,
increase our cost of financing, and have an adverse effect on
the market price of our securities.

INFORMATION SYSTEMS AND CYBERSECURITY

We rely on information technology to support our operations
and reporting environments. Any failure of that technology,
whether by means of a security breach or other cause, could
affect our ability to operate our businesses effectively,
adversely affect our reported financial results, affect our
reputation and expose us to potential liability or litigation.

We use information systems to carry out our operational
activities, maintain our business records, and collect and store
sensitive data, including intellectual property and other
proprietary and personally identifiable information. Some of our
systems are internally managed and some are maintained by
third-party service providers. We employ, and we believe our
third-party service providers employ, what we deem to be
reasonably adequate security measures; but notwithstanding
these efforts, our systems could be compromised as a result
of: a cyber incident, including but not limited to the occurrence
in our system of malicious code (such as malware, viruses and
ransomware); a natural disaster; a hardware or software
corruption, failure or error; a telecommunications system
failure; a service provider failure or error; an intentional or
unintentional personnel action; or any one or more other
causes of system breach, failure or disruption. If by any one or
more causes our systems or information resources were
disrupted, shutdown or otherwise compromised, or if our data
were destroyed, misappropriated or inappropriately disclosed,
our financial results or our business operations, or both, could
be negatively affected. Additionally, we could suffer significant
losses or incur significant liabilities, including without limitation
damage to our reputation, loss of customer confidence or
goodwill and significant expenditures of time and money to
address and remediate resulting damages to affected
individuals or business partners or to defend ourselves in
resulting litigation or other legal proceedings by affected
individuals, business partners or regulators.

32

UNRESOLVED STAFF COMMENTS
There are no unresolved comments that were received from the SEC staff relating to our periodic or current reports under the
Securities Exchange Act of 1934.

PROPERTIES
Details about our facilities, production capacities and locations are found in the Our Business — What We Do section of this
report.

•For details about our Timberlands properties, go to Our Business/What We Do/Timberlands/Where We Do It.
•For details about our Real Estate, Energy and Natural Resources properties, go to Our Business/What We Do/Real Estate,

Energy and Natural Resources/Where We Do It.

•For details about our Wood Products properties, go to Our Business/What We Do/Wood Products/Where We Do It.

LEGAL PROCEEDINGS
See Note 14: Legal Proceedings, Commitments and Contingencies and Note 20: Income Taxes for a summary of legal
proceedings.

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED
STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
SECURITIES
Our common stock trades on the New York Stock Exchange under the symbol WY.

As of December 31, 2020, there were 13,458 holders of record of our common shares.

INFORMATION ABOUT SECURITIES AUTHORIZED FOR ISSUANCE UNDER OUR EQUITY COMPENSATION PLAN

SHARES IN THOUSANDS

Equity compensation plans approved by security holders(1)

Equity compensation plans not approved by security holders

Total

NUMBER OF
SECURITIES TO BE
ISSUED UPON
EXERCISE OF
OUTSTANDING
OPTIONS,
WARRANTS AND
RIGHTS

WEIGHTED
AVERAGE EXERCISE
PRICE OF
OUTSTANDING
OPTIONS,
WARRANTS AND
RIGHTS

6,816

N/A

6,816

$16.30

N/A

$16.30

NUMBER OF
SECURITIES
REMAINING AVAILABLE
FOR FUTURE ISSUANCE
UNDER EQUITY
COMPENSATION PLANS
(EXCLUDING
SECURITIES TO BE
ISSUED UPON EXERCISE)

20,233

N/A

20,233

(1) Includes 1,851 thousand restricted stock units and 1,098 thousand performance share units. Because there is no exercise price associated with restricted stock units and performance

share units, excluding these units the weighted average exercise price would be $28.74.

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

33

INFORMATION ABOUT COMMON SHARE REPURCHASES

On February 7, 2019, our board of directors approved and announced a new share repurchase program (the 2019 Repurchase
Program) under which we are authorized to repurchase up to $500 million of outstanding shares. Concurrently, the board
terminated the remaining repurchase authorization under the share repurchase program approved by the board in November 2015
and authorized to begin subsequent to the closing of our 2016 merger with Plum Creek (the 2016 Repurchase Program).

There were no share repurchases during fourth quarter 2020.

COMPARISON OF FIVE-YEAR CUMULATIVE TOTAL SHAREHOLDER RETURN

Weyerhaeuser Company, S&P 500 and S&P Global Timber & Forestry Index

$250

$200

$150

$100

$50

$0

2015

2016

2017

2018

2019

2020

WEYERHAEUSER

S&P 500

S&P GLOBAL TIMBER & FORESTRY INDEX

PERFORMANCE GRAPH ASSUMPTIONS

•Assumes $100 invested on December 31, 2015, in Weyerhaeuser common stock, the S&P 500 Index and the S&P Global

Timber & Forestry Index.

•Total return assumes dividends received are reinvested immediately.
•Measurement dates are the last trading day of the calendar year shown.

34

MANAGEMENT’S DISCUSSION
AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF
OPERATIONS (MD&A)

WHAT YOU WILL FIND IN THIS MD&A

Our MD&A includes the following major sections:

•economic and market conditions affecting our operations;
•financial performance summary;
•results of our operations;
•liquidity and capital resources;
•off-balance sheet arrangements;
•environmental matters, legal proceedings and other

contingencies;

•accounting matters and
•performance measures.
For Management’s Discussion and Analysis of Financial
Condition and Results of Operations (MD&A) related to the year
ended December 31, 2018, refer to this same section in our
2019 annual report on Form 10-K as filed with the Securities
and Exchange Commission on February 14, 2020.

ECONOMIC AND MARKET CONDITIONS
AFFECTING OUR OPERATIONS

Overview

In mid-March, COVID-19 was officially declared a global
pandemic by the World Health Organization and a national
emergency was declared by the United States. States and
municipalities subsequently began to issue shelter-in-place
orders and similar mandates requiring those not engaged in
essential activities to remain home. The U.S. Department of
Homeland Security designated the forest products industry as
an “essential critical infrastructure workforce,” which
recognizes the importance of timber and wood products
operations in supporting critical infrastructure and construction
projects and the manufacture of important personal hygiene
items. In response to the pandemic, we began taking proactive
steps in early March to safeguard the health of our employees.
These actions include detailed cleaning and disinfecting
procedures, strict processes around social distancing and
personal hygiene, clear communication with our employees,
contractors, vendors and visitors about our safety protocols,
comprehensive guidance for response to any COVID-19
diagnoses or exposures in our operations, suspension of all air
travel and non-essential meetings, and a directive that
employees work from home if feasible.

Based on the timing of the outbreak, the economic effects of
the pandemic were less pronounced in the first quarter with a
drop in U.S. gross domestic product (GDP) of 5 percent. The
effects in the second quarter were more acute, with U.S. GDP
declining 31 percent. In April, the national unemployment rate
soared to a record-high of nearly 15 percent driven by the
restrictions imposed in response to the pandemic.
Unemployment gradually decreased over the following two
months to 13 percent in May and 11 percent in June as several
states began to reopen their economies and loosen restrictions
on certain sectors. The rate continued to decline over the
course of the third quarter, ultimately falling below 8 percent in
September. U.S. GDP also rebounded significantly in the third
quarter with an increase of 33 percent offsetting the record
decline in the prior quarter. More recently, economic recovery
has leveled off in the fourth quarter, with the unemployment
rate plateauing at just below 7 percent for all three months of
the quarter. U.S. GDP increased 4 percent in the fourth quarter
based on the advance estimate released by the U.S. Bureau of
Economic Analysis.

Market conditions across our businesses deteriorated rapidly in
late first quarter and early second quarter 2020 but quickly
rebounded as demand for housing and wood products proved
resilient. As the summer progressed, growth in repair and
remodel demand and new residential construction activity
resulted in demand for wood products that significantly
outpaced available supply, and benchmark pricing for our
commodity wood products reached record levels. Strong
demand and pricing for our wood products continued through
the back half of 2020. Looking ahead to 2021, our market
conditions and the strength of the broader U.S. economy will
continue to be influenced by the trajectory of U.S. housing
activity, COVID-19 infections and the nature and extent of future
government stimulus.

Business Outlook

The demand for sawlogs within our Timberlands segment is
directly affected by domestic production of wood-based building
products. The strength of the U.S. housing market, especially
new residential construction, strongly affects demand in our
Wood Products segment, as does repair and remodeling
activity. Our Timberlands segment, specifically the Western
region, is also affected by export demand and trade policy.

Japanese housing starts are a key driver of export log demand
in Japan. The demand for pulpwood from our Timberlands
segment is directly affected by the production of pulp, paper
and oriented strand board as well as the demand for biofuels,
such as pellets made from pulpwood.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

35

Full year 2020 new residential construction activity increased
moderately compared with the prior year. An estimated
1.38 million housing units were started in 2020, which is
7 percent above the 2019 total of 1.29 million as reported by
the U.S. Census Bureau. Single family starts totaled
approximately 991 thousand units, a 12 percent improvement
over the 2019 total of 888 thousand. Multi-family starts totaled
approximately 389 thousand units for 2020, which was
3 percent lower than 2019. During 2020, sales of newly built,
single family homes increased approximately 19 percent
compared to 2019. For 2021, we anticipate approximately
1.45 million housing starts, with the improvement driven by
additional single family activity.

In repair and remodel markets, stay at home behavior has
bolstered do-it-yourself activity, contributing to increased sales
at building supply stores and overall repair and remodeling
demand. According to the Census Bureau Advance Retail
Spending report, building material and garden supply store
sales increased 13 percent in 2020 compared to 2019,
evidencing the strength of the remodeling market over the
course of the year.

In U.S. wood product markets, demand and pricing for
commodity products increased sharply over the second half of
the year, and benchmark pricing for lumber and oriented strand
board reached record highs. The Random Lengths Framing
Lumber Composite price averaged $558/MBF in 2020, a
57 percent increase from the 2019 average. The Oriented
Strand Board Composite indicator price also increased
significantly, averaging $467/MSF in 2020, a 96 percent
increase from the 2019 average.

In Western log markets, Douglas fir sawlog prices increased
7 percent in 2020 compared with 2019 as reported by RISI Log
Lines. In the South, delivered sawlog prices increased slightly
compared with 2019 with a 1 percent change in price as
reported by TimberMart-South. Our full year Southern timber
harvest volumes were 12 percent below 2019 harvest levels,
as we reduced 2020 harvest volumes in light of the economic
effects of the COVID-19 pandemic.

Exchange rates, available supply from other countries and trade
policy affect our export businesses. In Japan, total housing
starts year to date through November 2020 declined
10 percent compared to the same period in 2019. A
comparable decline was observed for the key Post and Beam
segment. The decline in year over year housing starts is
influenced by an increase in the consumption tax which came
into effect in October 2019, as well as the impacts of the
COVID-19 pandemic.

Export log prices to China increased by 1 percent on average in
2020 over 2019, as reported by RISI Log Lines. After some
initial disruption in the first quarter of the year resulting from
COVID-19 restrictions, Chinese economic activity and log
demand grew steadily over the remainder of the year. The
volume of logs imported to China from Europe increased
significantly in 2020 compared to 2019, which negatively
affected demand for logs imported from other countries
including the U.S.

36

FINANCIAL PERFORMANCE SUMMARY

Net Sales by Segment

NET SALES BY SEGMENT IN MILLIONS OF DOLLARS

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

$1,618

$1,466

$313

$276

$5,790

$4,623

TIMBERLANDS

REAL ESTATE & ENR

WOOD PRODUCTS

2019

2020

Contribution to Earnings by Segment

CONTRIBUTION TO EARNINGS BY SEGMENT IN MILLIONS OF DOLLARS

$1,500

$1,200

$900

$600

$300

$0

$1,340

$347

$455

$144

$86

$353

TIMBERLANDS

REAL ESTATE & ENR

WOOD PRODUCTS

2019

2020

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

37

RESULTS OF OPERATIONS

Operating Income

Operating income increased $1,059 million — 163 percent —
primarily due to:

•a $943 million increase in consolidated gross margin (see

discussion of components above);

•a $134 million increase in gain on sale of timberlands (refer
to Note 4: Timberland Acquisitions and Divestitures) and

•a $79 million decrease in charges for integration and

restructuring, closures and asset impairments (refer to Note
4: Timberland Acquisitions and Divestitures).

These changes were partially offset by a $60 million decrease
in product remediation insurance recoveries (refer to Note 18:
Product Remediation Recoveries, Net) and a $39 million
increase in other operating costs, net attributable to an
$80 million timber casualty loss recorded in third quarter 2020
related to the Oregon wildfires, partially offset by a reduction in
legal charges (refer to Note 19: Other Operating Costs, Net).

Net Earnings

Net earnings increased $873 million — 1,149 percent —
primarily due to:

•a $1,059 million increase in operating income, as discussed

above, and

•a $226 million decrease in non-operating pension and other
post-employment benefit costs (refer to Note 9: Pension and
Other Post-Employment Benefit Plans).

These changes were partially offset by a $322 million change in
income taxes, from a $137 million benefit in 2019 to a $185
million income tax charge in 2020 (refer to Income Taxes
below), a $65 million increase in interest expense, net of
capitalized interest (refer to Interest Expense below) and a
$25 million decrease in interest income and other, primarily
attributable to interest income from buyer-sponsored SPE
investments in 2019 with no similar activity in 2020 (refer
to Note 8: Related Parties).

TIMBERLANDS

HOW WE DID

We report sales volume and annual production data for our
Timberlands segment in Our Business/What We Do/
Timberlands.

In reviewing our results of operations, it is important to
understand these terms:

•Sales realizations refer to net selling prices — this includes
selling price plus freight minus normal sales deductions.
•Net contribution (charge) to earnings refers to earnings (loss)

before interest expense and income taxes.

CONSOLIDATED RESULTS

HOW WE DID

Summary of Financial Results

DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES

AMOUNT OF CHANGE

2020

2019

2020
vs.
2019

$ 7,532 $ 6,554 $

978

$ 5,447 $ 5,412 $

35

$ 1,710 $

651 $ 1,059

$

$

797 $

(76) $

873

1.07 $

(0.10) $

1.17

Net sales

Costs of sales

Operating income

Net earnings (loss)

Basic and diluted earnings (loss) per
share

COMPARING 2020 WITH 2019

Net Sales

Net sales increased $978 million — 15 percent — primarily
due to a $1,167 million increase in Wood Products net sales to
unaffiliated customers, primarily attributable to increased sales
realizations across most product lines.

This increase was partially offset by a $152 million decrease in
Timberlands net sales to unaffiliated customers, primarily due
to decreased sales volumes across all regions, as well as a
$37 million decrease in Real Estate & ENR net sales to
unaffiliated customers, primarily due to a decrease in price per
acre sold.

Costs of Sales

Costs of sales increased $35 million — 1 percent — primarily
due to increased sales volumes across most product lines
within our Wood Products segment and increased basis per real
estate acre sold within our Real Estate & ENR segment. These
increases were partially offset by decreased log sales volumes
within our Timberlands segment. Refer to additional analysis of
fluctuations within our Timberlands, Real Estate, Energy and
Natural Resources and Wood Products discussions below.

38

Net Sales and Net Contribution to Earnings for Timberlands

Costs of Sales

DOLLAR AMOUNTS IN MILLIONS

Net sales to unaffiliated customers:

Delivered logs:

West

South

North(1)

Total

Stumpage and pay-as-cut timber

Recreational and other lease revenue

Other products(2)

Subtotal net sales to unaffiliated
customers

AMOUNT OF CHANGE

2020

2019

$

720 $

740 $

573

52

640

92

2020
vs.
2019

(20)

(67)

(40)

1,345

1,472

(127)

19

63

39

42

61

43

(23)

2

(4)

1,466

1,618

(152)

Intersegment net sales

471

503

(32)

Total segment net sales

$ 1,937 $ 2,121 $

(184)

Costs of sales

$ 1,491 $ 1,649 $

(158)

Operating income and Net contribution
to earnings

$

455 $

347 $

108

(1) In November 2019, we sold our Michigan timberlands and in March 2020, we sold our
Montana timberlands. Refer to Note 4: Timberland Acquisitions and Divestitures for
further information on these divestitures.

(2) Other products include sales of seeds and seedlings from our nursery operations and

wood chips.

COMPARING 2020 WITH 2019

Net Sales — Unaffiliated Customers

Net sales to unaffiliated customers decreased $152 million —
9 percent — primarily due to:
•a $67 million decrease in Southern log sales attributable to a
7 percent decrease in sales volumes, as well as a 4 percent
decrease in sales realizations primarily due to a shift in
product mix;

•a $40 million decrease in Northern log sales attributable to a
44 percent decrease in sales volumes primarily due to the
divestitures of our Michigan and Montana timberlands;
•a $23 million decrease in stumpage and pay-as-cut timber

sales and

•a $20 million decrease in Western log sales attributable to a
9 percent decrease in sales volumes, partially offset by a
7 percent increase in sales realizations.

Intersegment Sales

Intersegment sales decreased $32 million — 6 percent —
primarily due to a 12 percent decrease in intersegment log
sales volumes, partially offset by a 6 percent increase in
intersegment log sales realizations.

Costs of sales decreased $158 million — 10 percent —
primarily due to decreases in log sales volumes across all
regions, as discussed above.

Operating Income and Net Contribution to Earnings

Operating income and net contribution to earnings increased
$108 million — 31 percent — primarily due to a $182 million
gain on sale of certain southern Oregon timberlands (refer to
Note 4: Timberland Acquisitions and Divestitures), partially
offset by an $80 million timber casualty loss related to the
Oregon wildfires (refer to Note 19: Other Operating Costs, Net).

REAL ESTATE, ENERGY AND NATURAL RESOURCES

HOW WE DID

We report acres sold and average price per acre for our Real
Estate, Energy and Natural Resources segment in Our
Business/What We Do/Real Estate, Energy and Natural
Resources.

Net Sales and Net Contribution to Earnings for Real Estate,
Energy and Natural Resources

DOLLAR AMOUNTS IN MILLIONS

AMOUNT OF CHANGE

2020

2019

2020
vs.
2019

Net sales to unaffiliated buyers:

Real estate

$ 202 $ 225 $

(23)

Energy and natural resources

Subtotal net sales to unaffiliated buyers

Intersegment net sales

74

276

—

88

313

1

(14)

(37)

(1)

Total segment net sales

$ 276 $ 314 $

(38)

Costs of sales

$ 165 $ 145 $

20

Net contribution to earnings

$

86 $ 144 $

(58)

The volume of real estate sales is a function of many factors,
including:
•the general state of the economy,
•demand in local real estate markets,
•the ability to obtain entitlements,
•the ability of buyers to obtain financing,
•the number of competing properties listed for sale,
•the seasonal nature of sales (particularly in the northern

states),

•the plans of adjacent landowners,
•our expectations of future price appreciation,
•the timing of harvesting activities and
•the availability of government and not-for-profit funding

(especially for conservation sales).

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

39

In any period, the average sales price per acre will vary based
on the location and physical characteristics of parcels sold.

COMPARING 2020 WITH 2019

Net Sales

COMPARING 2020 WITH 2019

Net Sales — Unaffiliated Buyers

Net sales to unaffiliated buyers decreased $37 million —
12 percent — primarily attributable to a decrease in price per
acre sold, as well as lower oil and gas prices.

Costs of Sales

Costs of sales increased $20 million — 14 percent — primarily
attributable to increased basis per real estate acre sold.

Net Contribution to Earnings

Net contribution to earnings decreased $58 million —
40 percent — attributable to the change in the components of
gross margin, as discussed above.

WOOD PRODUCTS

HOW WE DID

Net sales increased $1,167 million — 25 percent — primarily
due to:

•a $710 million increase in structural lumber sales

attributable to a 37 percent increase in sales realizations;

•a $381 million increase in oriented strand board sales

attributable to a 58 percent increase in sales realizations;
•a $74 million increase in complementary building products
sales attributable to increased sales volumes for cedar
lumber and decking materials;

•a $10 million increase in softwood plywood sales attributable
to a 13 percent increase in sales realizations, partially offset
by a 7 percent decrease in sales volumes and

•a $5 million increase in medium density fiberboard sales
attributable to a 2 percent increase in sales realizations.

These increases were partially offset by a $7 million decrease
in engineered I-joist sales and a $5 million decrease in
engineered solid section sales.

Costs of Sales

We report sales volume and annual production data for our
Wood Products segment in Our Business/What We Do/Wood
Products.

Costs of sales increased $123 million — 3 percent — primarily
attributable to an increase in sales volumes across most
product lines.

Net Sales and Net Contribution to Earnings for Wood Products

Operating Income and Net Contribution to Earnings

DOLLAR AMOUNTS IN MILLIONS

AMOUNT OF CHANGE

2020

2019

2020
vs.
2019

Net sales:

Structural lumber

$ 2,602 $ 1,892 $

710

Oriented strand board

1,013

Engineered solid section

Engineered I-joists

Softwood plywood

Medium density fiberboard

Complementary building products

Other products produced (1)

505

316

171

171

676

336

632

510

323

161

166

602

337

381

(5)

(7)

10

5

74

(1)

Total segment net sales

$ 5,790 $ 4,623 $ 1,167

Costs of sales

$ 4,221 $ 4,098 $

123

Operating income and Net contribution to
earnings

$ 1,340 $

353 $

987

(1) Other products produced sales include wood chips, other byproducts and third-party

residual log sales from our Canadian Forestlands operations.

Operating income and net contribution to earnings increased
$987 million — 280 percent — primarily due to the change in
the components of gross margin, as discussed above, partially
offset by a $60 million decrease in product remediation
insurance recoveries (refer to Note 18: Product Remediation
Recoveries, Net).

UNALLOCATED ITEMS

Unallocated Items are gains or charges related to company-
level initiatives or previous businesses that are not allocated to
our current business segments. They include all or a portion of
items such as:

•share-based compensation,
•pension and post-employment costs,
•elimination of intersegment profit in inventory and LIFO,
•foreign exchange transaction gains and losses resulting from
changes in exchange rates primarily related to our U.S. dollar
denominated cash and debt balances that are held by our
Canadian subsidiary,

•interest income and other, as well as
•legacy obligations, such as environmental remediation and

workers compensation.

40

Net Charge to Earnings for Unallocated Items

INCOME TAXES

DOLLAR AMOUNTS IN MILLIONS

AMOUNT OF CHANGE

2020

2019

2020
vs.
2019

Unallocated corporate function and variable
compensation expense

$

(109) $

(80) $

(29)

Liability classified share-based compensation

Foreign exchange loss

Elimination of intersegment profit in inventory
and LIFO

Other

Operating loss

(2)

(7)

(17)

(7)

(2)

(5)

(36)

(99)

(171)

(193)

5

(5)

(12)

63

22

Non-operating pension and other post-
employment benefit costs

(290)

(516)

226

Interest income and other

5

30

(25)

Net charge to earnings

$ (456) $ (679) $

223

Net charge to earnings decreased by $223 million —
33 percent — primarily due to:

•a $226 million decrease in non-operating pension and other
post-employment benefit costs primarily attributable to a
$202 million decrease in pension settlement charges (refer
to Note 9: Pension and Other Post-Employment Benefit
Plans) and

•a $63 million decrease in other, primarily due to a reduction

in legal charges.

These decreases were partially offset by a $29 million increase
in unallocated corporate function and variable compensation
expense, a $25 million decrease in interest income and other,
as well as a $12 million increase in elimination of intersegment
profit in inventory and LIFO.

INTEREST EXPENSE

Our net interest expense incurred for the last two years was:

•$443 million in 2020 and
•$378 million in 2019.
Interest expense increased by $65 million compared to 2019
primarily due to an $80 million increase in charges related to
the early extinguishment of debt (refer to Note 12: Long-Term
Debt, Net). This increase was partially offset by $12 million of
expense on SPE notes recorded during 2019, with no similar
activity in 2020 (refer to Note 8: Related Parties).

As a REIT, we generally are not subject to federal corporate
level income taxes on REIT taxable income that is distributed to
shareholders. Historical distributions to shareholders, including
amounts and tax characteristics, are summarized in the table
below.

AMOUNTS PER SHARE

Common – capital gain distribution

2020

2019

$ 0.51 $ 1.36

We are required to pay corporate income taxes on earnings of
our TRSs, which include our Wood Products segment and
portions of our Timberlands and Real Estate & ENR segments’
earnings. Our provision for income taxes is primarily driven by
earnings generated by our TRSs.

Our provision (benefit) for income taxes the last two years was:

•$185 million in 2020 and
•$(137) million in 2019.
During 2020, we recorded a $60 million tax benefit related to
the noncash pretax settlement charge recorded in connection
with our U.S. pension plan.

During 2019, we recorded a $109 million tax benefit related to
the noncash pretax settlement charge recorded in connection
with our U.S. pension plan and a $17 million tax expense
related to an insurance recovery received in connection with
prior product remediation efforts.

Refer to Note 20: Income Taxes and Note 9: Pension and Other
Post-Employment Plans for further information.

LIQUIDITY AND CAPITAL RESOURCES

We are committed to maintaining an appropriate capital
structure that provides flexibility and enables us to protect the
interests of our shareholders and meet our obligations to our
lenders, while also maintaining access to all major financial
markets. As of December 31, 2020, we had $495 million in
cash and cash equivalents and $1.5 billion of availability on our
line of credit, which expires in January 2025. We believe we
have sufficient liquidity to meet our cash requirements for the
foreseeable future.

In light of the significant uncertainty regarding the duration and
magnitude of the effects of the COVID-19 pandemic on our
business and our customers, in May 2020, as part of several
steps taken to enhance and preserve liquidity and financial
flexibility, the board of directors temporarily suspended the
quarterly cash dividend.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

41

The board continued to evaluate the company’s cash flow,
liquidity, leverage, customer demand, market conditions, the
broader macroeconomic environment, and other factors in
assessing opportunities to reinitiate the quarterly cash
dividend. Based upon its evaluation of these factors, the board
approved the reinitiation of the company’s quarterly cash
dividend within a new implementation framework in fourth
quarter 2020. Under this new framework, the company pays a
quarterly base cash dividend that began in fourth quarter 2020
that is supported by cash flows from the Timberlands and Real
Estate, Energy and Natural Resources segments. The company
expects to supplement this base dividend, as appropriate, with
a variable return of cash to achieve the company’s targeted
annual total return of cash to shareholders. We expect this
additional return of cash will occur primarily through a variable
supplemental cash dividend. In certain circumstances, the
company may also utilize opportunistic share repurchase. For
fourth quarter 2020, the base cash dividend declared by the
board was $0.17 per share. The board will continue to evaluate
the cash dividend on a quarterly basis based on this framework
and the other factors outlined above.

•proceeds from sales of assets and operations.
Consolidated net cash from investing activities was:

•$185 million in 2020 and
•$187 million in 2019.

COMPARING 2020 WITH 2019

Net cash from investing activities decreased by $2 million,
primarily due to a $425 million increase in cash paid for
timberlands acquisitions (refer to Note 4: Timberland
Acquisitions and Divestitures). This increase was largely offset
by:

•a $229 million increase in proceeds from the sale of

timberlands;

•a $109 million increase in proceeds received from variable

interest entities and

•a $102 million decrease in capital expenditures for property

and equipment.

Summary of Capital Spending by Business Segment

DOLLAR AMOUNTS IN MILLIONS

CASH FROM OPERATIONS

Consolidated net cash from operations was:

•$1,529 million in 2020 and
•$966 million in 2019.

COMPARING 2020 WITH 2019

Net cash from operations increased by $563 million, primarily
due to increased cash inflows from our business segments.
This increase was partially offset by a $178 million increase in
cash paid for income taxes.

Pension Contributions and Benefit Payments Made and
Expected

During 2020, we contributed a total of $30 million to our
pension and post-employment plans, compared to a total of
$45 million during 2019.

For 2021, we expect to contribute approximately $25 million to
our pension and post-employment benefit plans. Refer to
Note 9: Pension and Other Post-Employment Benefit Plans for
further information.

INVESTING IN OUR BUSINESS

Cash from investing activities includes items such as:

•acquisitions of property, equipment, timberlands and

reforestation and

42

Timberlands

Wood Products

Unallocated Items

Total

2020

2019

$ 104 $ 112

176

1

257

15

$ 281 $ 384

We expect our capital expenditures for 2021 to be approximately
$420 million. The amount we spend on capital expenditures could
change due to:

•future economic conditions,
•environmental regulations,
•changes in the composition of our business,
•weather,
•timing of equipment purchases and
•capital needs related to other business opportunities.

FINANCING

Cash from financing activities includes items such as:

•issuances and payments of debt,
•borrowings and payments on our revolving line of credit,
•proceeds from option exercises and
•payments for cash dividends and repurchasing stock.
Consolidated net cash from financing activities was:

•$(1,358) million in 2020 and
•$(1,348) million in 2019.

COMPARING 2020 WITH 2019

Net cash from financing activities decreased $10 million in
2020, primarily due to:

•a $987 million increase in net cash used for payments on

long-term debt and

•a $35 million increase in net cash paid related to borrowings

on our line of credit.

These changes were largely offset by the following:

•a $632 million decrease in cash paid for dividends,
•a $302 million decrease in cash paid related to our

monetized SPEs,

•a $60 million decrease in cash used for share repurchases

and

•a $20 million increase in cash received from exercise of

stock options.

the identification or creation of a widely accepted replacement
rate. We have included provisions in our revolving credit
agreement that specifically contemplate the transition from
LIBOR to a replacement benchmark rate. In July 2020, we
amended our term loan agreement primarily to include
provisions that address the future discontinuance of LIBOR and
set forth the process for transition to an alternate benchmark
rate.

As of December 31, 2020, of our $5.5 billion long-term debt,
only $225 million in borrowings are governed by debt
agreements that utilize LIBOR as one of the alternative
applicable rates. We therefore do not believe that the
discontinuation of LIBOR as a reference rate in our debt
agreements will have a material adverse effect on our financial
position or materially affect our interest expense.

Our Covenants

LONG-TERM DEBT

Our consolidated long-term debt (including current portion) was:

•$5.5 billion as of December 31, 2020 and
•$6.1 billion as of December 31, 2019.
The decrease in our long-term debt during 2020 is attributable
to the repayment of our $569 million 4.70 percent notes,
$325 million 3.25 percent notes and $500 million
4.625 percent notes, partially offset by the issuance of our
$750 million 4.00 percent notes due in April 2030.

Our key covenants include the requirement to maintain:

•a minimum total adjusted shareholders’ equity of $3.0 billion

and

•a defined debt-to-total-capital ratio of 65 percent or less.
Our total adjusted shareholders’ equity is comprised of:

•total shareholders’ equity,
•excluding accumulated other comprehensive income (loss),
•minus our investment in our unrestricted subsidiaries.
Our capitalization is comprised of:

The weighted average interest rate and the weighted average
maturity on our long-term debt (excluding line of credit) as of
December 31, 2020 were 5.97 percent and 7.5 years,
respectively.

•total debt,
•plus total adjusted shareholders’ equity.
As of December 31, 2020, we had:

See Note 12: Long-Term Debt, Net for more information.

LINE OF CREDIT

In January 2020, we refinanced and extended our $1.5 billion
five-year senior unsecured revolving credit facility, which expires
in January 2025. As of December 31, 2020, we had no
outstanding borrowings on the revolving credit facility. As of
December 31, 2019, we had $230 million of outstanding
borrowings on the revolving credit facility. We were in
compliance with the revolving credit facility covenants as of
December 31, 2020 and December 31, 2019.

Our revolving credit agreement and our term loan agreement
utilize the London Inter-bank Offered Rate (LIBOR) as a basis
for one of the interest rate options available to the company to
apply to outstanding borrowings. Publication of USD LIBOR is
expected to cease between January 1, 2022 and July 1, 2023,
and we are closely monitoring ongoing market developments in

•total adjusted shareholders’ equity of $9.6 billion and
•a defined debt-to-total-capital ratio of 36.4 percent.
When calculating compliance in accordance with financial debt
covenants as of December 31, 2020 and December 31, 2019,
we excluded the full amount of accumulated other
comprehensive loss of $822 million and $904 million,
respectively. See Note 15: Shareholders’ Interest for further
information on accumulated other comprehensive loss.

There are no other significant financial debt covenants related
to our third-party debt.

CREDIT RATINGS

As of December 31, 2020, our long-term issuer credit rating
was BBB and Baa2 from S&P and Moody’s, respectively.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

43

OPTION EXERCISES

Significant Contractual Obligations as of December 31, 2020

Our cash proceeds from the exercise of stock options were:

DOLLAR AMOUNTS IN MILLIONS

•$33 million in 2020 and
•$13 million in 2019.
Our average stock price was $26.04 and $26.45 in 2020 and
2019, respectively.

DIVIDENDS

We paid cash dividends on common shares of:

•$381 million in 2020 and
•$1,013 million in 2019.
The decrease in dividends paid is primarily due to the
temporary suspension of our quarterly dividend payments in the
second and third quarter of 2020.

SHARE REPURCHASES

On February 7, 2019, our board of directors approved and
announced a new share repurchase program (the 2019
Repurchase Program) under which we are authorized to
repurchase up to $500 million of outstanding shares. We did
not repurchase any shares during the year ended December 31,
2020. We repurchased over 2.3 million shares for
approximately $60 million (including transaction fees) during
the year ended December 31, 2019, under the 2019
Repurchase Program. There were no unsettled repurchases as
of December 31, 2020, or December 31, 2019. For further
information on share repurchases see Note 15: Shareholders’
Interest.

OUR CONTRACTUAL OBLIGATIONS AND COMMERCIAL
COMMITMENTS

More details about our contractual obligations and commercial
commitments are in Note 9: Pension and Other Post-
Employment Benefit Plans, Note 11: Line of Credit, Note 12:
Long-Term Debt, Net, Note 14: Legal Proceedings,
Commitments and Contingencies and Note 20: Income Taxes.

PAYMENTS DUE BY PERIOD

LESS
THAN 1
YEAR

TOTAL

1–3
YEARS

3–5
YEARS

MORE
THAN 5
YEARS

$ 5,500 $

150 $ 1,051 $

436 $ 3,863

2,426

159

300

320

30

107

611

46

106

384

142

36

481

1,014

24

27

25

59

60

78

Long-term debt
obligations,
including current
portion

Interest(1)

Lease obligations

Purchase
obligations(2)

Employee-related
obligations(3)

Total

$ 8,769 $

749 $ 1,850 $

993 $ 5,074

(1) Amounts presented for interest payments assume that all long-term debt obligations

outstanding as of December 31, 2020 will remain outstanding until maturity and interest
rates on variable-rate debt in effect as of December 31, 2020 will remain in effect until
maturity.

(2) Purchase obligations include agreements to purchase goods or services that are

enforceable and legally binding on the company and that specify all significant terms,
including: fixed or minimum quantities to be purchased; fixed, minimum or variable price
provisions and the approximate timing of the transaction. Purchase obligations exclude
arrangements that the company can cancel without penalty.

(3) The timing of certain payments within this category will be triggered by retirements or

other events. These payments can include workers’ compensation, deferred
compensation and banked vacation, among other obligations. When the timing of
payment is uncertain, the amounts are included in the total column only. Minimum
pension funding is required by established funding standards and estimates are not
made in 2021 onward. Estimated payments of contractually obligated post-employment
benefits are not included due to the uncertainty of payment timing.

OFF-BALANCE SHEET ARRANGEMENTS

Off-balance sheet arrangements have not had — and are not
reasonably likely to have — a material effect on our current or
future financial condition, results of operations or cash flows.
Note 8: Related Parties and Note 11: Line of Credit contain our
disclosures of:

•surety bonds,
•letters of credit and
•information regarding variable interest entities.

ENVIRONMENTAL MATTERS, LEGAL
PROCEEDINGS AND OTHER CONTINGENCIES

See Note 14: Legal Proceedings, Commitments and
Contingencies.

44

ACCOUNTING MATTERS

CRITICAL ACCOUNTING POLICIES

In the preparation of our financial statements we follow
established accounting policies and make estimates that affect
both the amounts and timing of the recording of assets,
liabilities, revenues and expenses. Some of these estimates
require judgments about matters that are inherently uncertain.
Accounting policies whose application may have a significant
effect on the reported results of operations and financial
position are considered critical accounting policies.

In accounting, we base our judgments and estimates on:

•historical experience and
•assumptions we believe are appropriate and reasonable

under current circumstances.

Actual results, however, may differ from the estimated amounts
we have recorded.

Our most critical accounting policies relate to our:

•discount rates for pension and post-employment benefit

plans;

•potential impairments of long-lived assets and
•contingent liabilities.
Details about our other significant accounting policies — what
we use and how we estimate — are in Note 1: Summary of
Significant Accounting Policies.

DISCOUNT RATES FOR PENSION AND POST-EMPLOYMENT
BENEFIT PLANS

Discount rates are used to estimate the net present value of
our pension and other post-employment plan obligations. These
rates are determined at the measurement date by matching
current spot rates of high-quality corporate bonds with
maturities similar to the timing of expected cash outflows for
benefits. The selection of discount rates requires judgment as
well as the involvement of actuarial specialists. These
specialists assist with selecting yield curves based on
published indices for high-quality corporate bonds and
projecting the timing and amount of cash flows associated with
our obligations to ultimately support our determination of an
appropriate discount rate for each plan.

Our discount rates as of December 31, 2020 are:

•2.5 percent for our U.S. pension plans — compared with

3.4 percent at December 31, 2019;

•2.1 percent for our U.S. post-employment plans — compared

with 3.0 percent at December 31, 2019;

•2.5 percent for our Canadian pension plans — compared

with 3.1 percent at December 31, 2019 and

•2.4 percent for our Canadian post-employment plans —
compared with 3.0 percent at December 31, 2019.

Pension expenses for 2021 will be based on the 2.5 percent
assumed discount rate for the U.S. pension plan and the
Canadian pension plan, and the 2.1 percent and 2.4 percent
assumed discount rates for the U.S. and Canadian post-
employment benefit plans, respectively.

Our discount rates are important in determining the cost of our
plans. A 50 basis point decrease in our discount rate would
increase expense or reduce a credit by approximately:

•$20 million for our U.S. qualified pension plans and
•$6 million for our Canadian registered pension plans.

IMPAIRMENT OF LONG-LIVED ASSETS

We review the carrying value of long-lived assets whenever an
event or a change in circumstance indicates that the carrying
value of the asset or asset group may not be recoverable
through future operations. The carrying value is the original
cost, less accumulated depreciation and any past impairments
recorded. Refer to Note 4: Timberland Acquisitions and
Divestitures for information on an impairment recognized in
2019.

If we evaluate recoverability, we are required to estimate future
cash flows and residual values of the asset or asset group. Key
assumptions used in developing these estimates would include
probability of alternative outcomes, product pricing, raw
material cost and product sales.

An impairment occurs when the carrying value of a long-lived
asset is greater than the amount that could be recovered from
the estimated future cash flows of the asset and greater than
fair market value (the amount we could receive if we were to
sell the asset). Key assumptions used in developing estimates
of fair value would include the estimated future cash flows used
to assess recoverability, discount rates and probability of
alternative outcomes.

CONTINGENT LIABILITIES

We are subject to lawsuits, investigations and other claims
related to environmental, product and other matters, and are
required to assess the likelihood of any adverse judgments or
outcomes to these matters, as well as the amount or range of
potential loss.

We record contingent liabilities when:

•it becomes probable that a loss has been incurred and
•the amount of loss can be reasonably estimated.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

45

Assessing probability of loss and estimating the amount of loss
can require analysis of multiple factors, such as:
•historical experience,
•evaluations of relevant legal and environmental authorities

and regulations,

•judgments about the potential actions of third-party claimants

and courts and

•consideration of potential environmental remediation

methods.

In addition to contingent liabilities recorded for probable losses,
we disclose contingent liabilities when there is a reasonable
possibility that a loss may have been incurred.

Recorded contingent liabilities are based on the best
information available and actual losses in any future period are
inherently uncertain. If estimated probable future losses or
actual losses exceed our recorded liability for such claims, we
record additional charges. These exposures and proceedings
can be significant and the ultimate negative outcomes could be
material to our operating results or cash flows in any given
quarter or year. See Note 14: Legal Proceedings, Commitments
and Contingencies for more information.

PROSPECTIVE ACCOUNTING PRONOUNCEMENTS

A summary of prospective accounting pronouncements is in
Note 1: Summary of Significant Accounting Policies.

PERFORMANCE MEASURES

We use Adjusted EBITDA as a key performance measure to
evaluate the performance of the consolidated company and our
business segments. This measure should not be considered in
isolation from, and is not intended to represent an alternative
to, our results reported in accordance with U.S. generally
accepted accounting principles (U.S. GAAP). However, we
believe Adjusted EBITDA provides meaningful supplemental
information for our investors about our operating performance,
better facilitates period to period comparisons and is widely
used by analysts, lenders, rating agencies and other interested
parties. Our definition of Adjusted EBITDA may be different from
similarly titled measures reported by other companies. Adjusted
EBITDA, as we define it, is operating income adjusted for
depreciation, depletion, amortization, basis of real estate sold
and special items.

Adjusted EBITDA by Segment

DOLLAR AMOUNTS IN MILLIONS

Timberlands

Real Estate & ENR

Wood Products

Unallocated Items

Total

2020

2019

$

610 $

241

1,527

680

274

476

(177)

(154)

$ 2,201 $ 1,276

We reconcile Adjusted EBITDA to net earnings for the
consolidated company and to operating income for the
business segments, as those are the most directly comparable
U.S. GAAP measures for each.

The table below reconciles Adjusted EBITDA by segment to net income for the year ended December 31, 2020:

DOLLAR AMOUNTS IN MILLIONS

Net income

Interest expense, net of capitalized interest (1)

Income taxes

TIMBERLANDS

REAL ESTATE
& ENR

WOOD
PRODUCTS

UNALLOCATED
ITEMS

$

TOTAL

797

443

185

Net contribution (charge) to earnings

$

455

$

86

$

1,340

$

(456) $

1,425

Non-operating pension and other post-employment benefit costs(2)

Interest income and other

Operating income (loss)

Depreciation, depletion and amortization

Basis of real estate sold

Special items included in operating income (loss)(3)(4)(5)

—

—

455

257

—

(102)

—

—

86

14

141

—

—

—

1,340

195

—

(8)

290

(5)

(171)

6

—

(12)

290

(5)

1,710

472

141

(122)

Adjusted EBITDA

$

610

$

241

$

1,527

$

(177) $

2,201

(1) Interest expense, net of capitalized interest includes pretax special items of $92 million related to charges for the early extinguishment of debt.
(2) Non-operating pension and other post-employment benefit costs includes a pretax special item consisting of a $253 million noncash settlement charge related to the transfer of pension

plan assets and liabilities through the purchase of a group annuity contract.

(3) Operating income (loss) for Timberlands includes pretax special items consisting of a $182 million gain on sale of certain southern Oregon timberlands and an $80 million timber casualty

loss.

(4) Operating income (loss) for Wood Products includes a pretax special item consisting of an $8 million product remediation insurance recovery.
(5) Operating income (loss) for Unallocated Items includes a pretax special item consisting of a $12 million noncash legal benefit.

46

The table below reconciles Adjusted EBITDA by segment to net loss for the year ended December 31, 2019:

DOLLAR AMOUNTS IN MILLIONS

Net loss

Interest expense, net of capitalized interest (1)

Income taxes

TIMBERLANDS

REAL ESTATE &
ENR

WOOD
PRODUCTS

UNALLOCATED
ITEMS

$

Net contribution (charge) to earnings

$

347

$

144

$

353

$

(679) $

Non-operating pension and other post-employment benefit costs(2)

Interest income and other

Operating income (loss)

Depreciation, depletion and amortization

Basis of real estate sold

Special items included in operating income (loss)(3)(4)(5)

—

—

347

301

—

32

—

—

144

14

116

—

—

—

353

191

—

(68)

516

(30)

(193)

4

—

35

TOTAL

(76)

378

(137)

165

516

(30)

651

510

116

(1)

Adjusted EBITDA

$

680

$

274

$

476

$

(154) $

1,276

(1) Interest expense, net of capitalized interest includes a pretax special item of $12 million related to a charge for the early extinguishment of debt.
(2) Non-operating pension and other post-employment benefit costs includes pretax special items consisting of $455 million noncash settlement charges related to the transfers of pension

plan assets and liabilities to an insurance company through the purchase of group annuity contracts.

(3) Operating income (loss) for Timberlands includes pretax special items consisting of an $80 million noncash impairment charge related to the agreement to sell our Montana timberlands

and a $48 million gain on sale of our Michigan timberlands.

(4) Operating income (loss) for Wood Products includes a pretax special item consisting of a $68 million product remediation insurance recovery.
(5) Operating income (loss) for Unallocated Items includes pretax special items consisting of $35 million of legal charges.

The table below reconciles net earnings per diluted share
before special items to net earnings (loss) per diluted share:

AMOUNTS PER SHARE

Net earnings (loss) per diluted share

$

1.07 $ (0.10)

2020

2019

Early extinguishment of debt charges

Gain on sale of timberlands

Legal charges (benefits)

Pension settlement charges

Product remediation recoveries

Restructuring, impairments and other charges

Timber casualty loss

0.12

(0.24)

(0.02)

0.26

0.01

(0.07)

0.04

0.47

(0.01)

(0.07)

—

0.11

0.11

—

Net earnings per diluted share before special items

$

1.29 $

0.39

We also reconcile net earnings before special items to net
earnings and net earnings per diluted share before special
items to net earnings per diluted share, as those are the most
directly comparable U.S. GAAP measures. We believe the
measures provide meaningful supplemental information for
investors about our operating performance, better facilitate
period to period comparisons, and are widely used by analysts,
lenders, rating agencies and other interested parties.

The table below reconciles net earnings before special items to
net earnings (loss):

DOLLAR AMOUNTS IN MILLIONS

Net earnings (loss)

Early extinguishment of debt charges

Gain on sale of timberlands

Legal charges (benefits)

Pension settlement charges

Product remediation recoveries

Restructuring, impairments and other charges

Timber casualty loss

2020

2019

$

797 $

(76)

92

(182)

(12)

193

(6)

—

80

9

(48)

26

345

(51)

80

—

Net earnings before special items

$

962 $

285

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

47

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

LONG-TERM DEBT OBLIGATIONS

The following summary of our long-term debt obligations includes:

•scheduled principal repayments for the next five years and after,
•weighted average interest rates for debt maturing in each of the next five years and after and
•estimated fair values of outstanding obligations.
We estimate the fair value of long-term debt based on quoted market prices we receive for the same types and issues of our debt
or on the discounted value of the future cash flows using market yields for the same type and comparable issues of debt.
Changes in market rates of interest affect the fair value of our fixed-rate debt.

SUMMARY OF LONG-TERM DEBT OBLIGATIONS AS OF DECEMBER 31, 2020

DOLLAR AMOUNTS IN MILLIONS

Fixed-rate debt

Average interest rate

Variable-rate debt

Average interest rate

2021

2022

2023

2024

2025

THEREAFTER

TOTAL(1)

FAIR VALUE

$

$

150

$

— $

1,051

$

— $

436

$

3,638

$

5,275

$

6,718

9.00%

— $

—%

—%

— $

—%

5.56%

— $

—%

—%

— $

—%

8.33%

5.94%

6.15%

— $

225

$

225

$

—%

1.75%

1.75%

N/A

225

N/A

(1) Excludes $25 million of unamortized discounts, capitalized debt expense and business combination fair value adjustments.

48

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors
Weyerhaeuser Company:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Weyerhaeuser Company and subsidiaries (the Company) as of
December 31, 2020 and 2019, the related consolidated statements of operations, comprehensive income, cash flows, and
changes in equity for each of the years in the three-year period ended December 31, 2020, and the related notes (collectively, the
consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects,
the financial position of the Company as of December 31, 2020 and 2019, and the results of its operations and its cash flows
for each of the years in the three-year period ended December 31, 2020, in conformity with U.S. generally accepted accounting
principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in
Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission, and our report dated February 19, 2021 expressed an unqualified opinion on the effectiveness of the Company’s
internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 17 to the consolidated financial statements, the Company changed its method of accounting for leases as
of January 1, 2019 due to the adoption of FASB ASC Topic 842, Leases.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the
PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and
the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement,
whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the
consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such
procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial
statements. Our audits also included evaluating the accounting principles used and significant estimates made by management,
as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a
reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial
statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or
disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or
complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated
financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate
opinion on the critical audit matter or on the accounts or disclosures to which it relates.

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

49

Projected benefit obligations for pensions

As discussed in Notes 1 and 9 to the consolidated financial statements, the Company’s projected benefit obligations
for pensions were $3,971 million as of December 31, 2020. The Company estimates the liability related to their
pension plans using actuarial models that include assumptions about the Company’s discount rates.

We identified the evaluation of the Company’s projected benefit obligations for pensions as a critical audit matter. This
is due to the sensitivity of the obligations to changes in the discount rates used and the subjectivity in evaluating those
rates. Additionally, the assessment of discount rates required specialized actuarial skills and knowledge.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design
and tested the operating effectiveness of certain internal controls related to the pension obligation process. This
included controls related to the actuarial determination of the discount rates used in the valuation of projected benefit
obligations for pensions. These procedures also included analyzing year-over-year changes to the projected cash flows
associated with the obligations. Additionally, we involved actuarial professionals with specialized skills and knowledge,
who assisted in the evaluation of the Company’s discount rates by:

•evaluating the selected yield curves used to determine the discount rates
•assessing changes in the discount rates from the prior year against changes in published indices
•evaluating the discount rates based on the projected cash flows compared with those of similar plans.

/s/ KPMG LLP

We have served as the Company’s auditor since 2002.

Seattle, Washington
February 19, 2021

50

CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31, 2020

DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES

Net sales

Costs of sales

Gross margin

Selling expenses

General and administrative expenses

Charges for integration and restructuring, closures and asset impairments (Note 4)

Product remediation recoveries, net (Note 18)

Gain on sale of timberlands (Note 4)

Other operating costs, net (Note 19)

Operating income

Non-operating pension and other post-employment benefit costs (Note 9)

Interest income and other

Interest expense, net of capitalized interest

Earnings (loss) before income taxes

Income taxes (Note 20)

Net earnings (loss)

Basic and diluted earnings (loss) per share (Note 5):

Weighted average shares outstanding (in thousands) (Note 5):

Basic

Diluted

See accompanying Notes to Consolidated Financial Statements.

2020

2019

$

7,532 $

6,554 $

5,447

2,085

83

347

1

(8)

(182)

134

1,710

(290)

5

(443)

982

(185)

5,412

1,142

84

348

80

(68)

(48)

95

651

(516)

30

(378)

(213)

137

$

$

797 $

(76) $

1.07 $

(0.10) $

2018

7,476

5,592

1,884

88

318

2

—

—

82

1,394

(272)

60

(375)

807

(59)

748

0.99

746,931

745,897

754,556

747,899

745,897

756,827

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

51

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31, 2020

DOLLAR AMOUNTS IN MILLIONS

Comprehensive income:

Net earnings (loss)

Other comprehensive income (loss):

Foreign currency translation adjustments

Changes in unamortized actuarial loss, net of tax expense of $22 in 2020, $73 in 2019 and $235 in 2018

Changes in unamortized net prior service credit, net of tax (expense) benefit of $0 in 2020, ($1) in 2019 and $3
in 2018

2020

2019

2018

$

797 $

(76) $

748

18

62

2

26

225

(3)

(54)

733

(7)

Total comprehensive income

$

879 $

172 $

1,420

See accompanying Notes to Consolidated Financial Statements.

52

CONSOLIDATED BALANCE SHEET

DOLLAR AMOUNTS IN MILLIONS, EXCEPT PAR VALUE

ASSETS
Current assets:

Cash and cash equivalents

Receivables, net

Receivables for taxes

Inventories (Note 6)

Assets held for sale (Note 4)

Prepaid expenses and other current assets

Current restricted financial investments held by variable interest entities (Note 8)

Total current assets

Property and equipment, net (Note 7)

Construction in progress

Timber and timberlands at cost, less depletion

Minerals and mineral rights, less depletion

Deferred tax assets (Note 20)

Other assets

Total assets

LIABILITIES AND EQUITY
Current liabilities:

Current maturities of long-term debt (Notes 12 and 13)

Borrowings on line of credit (Notes 11 and 13)

Accounts payable

Accrued liabilities (Note 10)

Total current liabilities

Long-term debt, net (Notes 12 and 13)

Deferred tax liabilities (Note 20)

Deferred pension and other post-employment benefits (Note 9)

Other liabilities

Commitments and contingencies (Note 14)

Total liabilities

Equity:

Weyerhaeuser shareholders’ interest (Notes 15 and 16):

Common shares: $1.25 par value; authorized 1,360 million shares; issued and outstanding: 747,385 thousand shares at
December 31, 2020 and 745,300 thousand shares at December 31, 2019

Other capital

Retained earnings (accumulated deficit)

Accumulated other comprehensive loss (Note 15)

Total equity

Total liabilities and equity

See accompanying Notes to Consolidated Financial Statements.

DECEMBER 31,
2020

DECEMBER 31,
2019

$

495 $

450

82

443

—

139

—

1,609

2,013

73

11,827

268

120

401

139

309

98

416

140

147

362

1,611

1,969

130

11,929

281

72

414

$

$

16,311 $

16,406

150

—

204

596

950

5,325

24

911

370

—

230

246

530

1,006

6,147

6

693

377

7,580

8,229

934

8,208

411

(822)

8,731

$

16,311 $

932

8,152

(3)

(904)

8,177

16,406

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

53

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31, 2020

DOLLAR AMOUNTS IN MILLIONS

Cash flows from operations:

Net earnings (loss)

Noncash charges (credits) to earnings (loss):

Depreciation, depletion and amortization

Basis of real estate sold

Deferred income taxes, net (Note 20)

Pension and other post-employment benefits (Note 9)

Share-based compensation expense (Note 16)

Charges for impairment of assets (Note 4)

Net gains on sale of nonstrategic assets

Net gains on sale of timberlands (Note 4)

Timber casualty loss (Note 19)

Change in:

Receivables, net

Receivable and payable for taxes

Inventories

Prepaid expenses and other current assets

Accounts payable and accrued liabilities

Pension and post-employment contributions and benefit payments

Other

Net cash from operations

Cash flows from investing activities:

Capital expenditures for property and equipment

Capital expenditures for timberlands reforestation

Acquisition of timberlands (Note 4)

Proceeds from note receivable held by variable interest entities (Note 8)

Proceeds from sale of timberlands (Note 4)

Other

Net cash from investing activities

Cash flows from financing activities:

Cash dividends on common shares

Net proceeds from issuance of long-term debt (Note 12)

Payments on long-term debt (Note 12)

Proceeds from borrowings on line of credit (Note 11)

Payments on line of credit (Note 11)

Payments on debt held by variable interest entities (Note 8)

Proceeds from exercise of stock options

Repurchases of common shares (Note 15)

Other

Net cash from financing activities

Net change in cash and cash equivalents

Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

Cash paid (received) during the year for:

Interest, net of amounts capitalized of $4 in 2020, $5 in 2019 and $9 in 2018

Income taxes, net of refunds

See accompanying Notes to Consolidated Financial Statements.

54

2020

2019

2018

$

797 $

(76) $

748

472

141

(56)

326

30

—

(4)

(182)

80

(141)

65

(25)

(4)

(17)

(30)

77

1,529

(225)

(56)

(425)

362

526

3

185

(381)

732

(1,492)

550

(780)

—

33

—

(20)

510

116

(169)

548

30

80

(5)

(48)

—

13

33

(23)

6

37

(45)

(41)

966

(327)

(57)

—

253

297

21

187

(1,013)

739

(512)

1,095

(1,290)

(302)

13

(60)

(18)

486

124

72

309

42

1

(16)

—

—

62

(103)

(14)

(18)

(154)

(381)

(46)

1,112

(368)

(59)

—

—

—

(13)

(440)

(995)

—

(62)

425

—

(209)

52

(366)

(7)

(1,358)

(1,348)

(1,162)

356 $

(195) $

(490)

139 $

495 $

334 $

139 $

365 $

176 $

370 $

(2) $

824

334

358

95

$

$

$

$

$

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31, 2020

DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES

Common shares:

Balance at beginning of year

Issued for exercise of stock options and vested restricted stock units

Repurchases of common shares (Note 15)

Balance at end of year

Other capital:

Balance at beginning of year

Issued for exercise of stock options

Repurchases of common shares (Note 15)

Share-based compensation

Other transactions, net

Balance at end of year

Retained earnings (accumulated deficit):

Balance at beginning of year

Net earnings (loss)

Dividends on common shares

Adjustments related to new accounting pronouncements (Notes 15 and 17)

Balance at end of year

Accumulated other comprehensive loss:

Balance at beginning of year

Other comprehensive income

Adjustments related to new accounting pronouncements and other (Note 15)

Balance at end of year

Total equity:

Balance at end of year

Dividends paid per common share

See accompanying Notes to Consolidated Financial Statements.

2020

2019

2018

$

932 $

933 $

944

2

—

934

2

(3)

932

4

(15)

933

8,152

8,172

8,439

31

—

30

(5)

12

(57)

30

(5)

49

(351)

42

(7)

8,208

8,152

8,172

(3)

1,093

1,078

797

(383)

—

411

(76)

(1,013)

(7)

(3)

748

(995)

262

1,093

(904)

(1,152)

(1,562)

82

—

248

—

672

(262)

(822)

(904)

(1,152)

$

$

8,731 $

8,177 $

9,046

0.51 $

1.36 $

1.32

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

55

INDEX FOR NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1:

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 2:

BUSINESS SEGMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 3:

REVENUE RECOGNITION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 4:

TIMBERLAND ACQUISITIONS AND DIVESTITURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 5:

NET EARNINGS (LOSS) PER SHARE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 6:

INVENTORIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 7:

PROPERTY AND EQUIPMENT, NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 8:

RELATED PARTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 9:

PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 10: ACCRUED LIABILITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 11: LINE OF CREDIT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 12: LONG-TERM DEBT, NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 13: FAIR VALUE OF FINANCIAL INSTRUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 14: LEGAL PROCEEDINGS, COMMITMENTS AND CONTINGENCIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 15: SHAREHOLDERS’ INTEREST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 16: SHARE-BASED COMPENSATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 17: LEASES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 18: PRODUCT REMEDIATION RECOVERIES, NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 19: OTHER OPERATING COSTS, NET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 20:

INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

NOTE 21: GEOGRAPHIC AREAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

57

61

62

65

65

66

66

66

67

74

74

74

75

75

77

78

81

82

82

83

85

56

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

Segment Reporting. The management approach is based on the way the
chief operating decision maker organizes the segments within a
company for making decisions about resources to be allocated and
assessing their performance.

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES

We are principally engaged in:

Our significant accounting policies describe:

•our election to be taxed as a real estate investment trust,
•how we report our results,
•changes in how we report our results and
•how we account for various items.

OUR ELECTION TO BE TAXED AS A REAL ESTATE
INVESTMENT TRUST (REIT)

•growing and harvesting timber;
•maximizing the value of our acreage through the sale of

higher and better use (HBU) properties and monetizing the
value of surface and subsurface assets through leases and
royalties and

•manufacturing, distributing and selling products made from

trees.

Our business segments are organized based primarily on
products and services.

Our company is a REIT and REIT income can be distributed to
shareholders without first paying corporate level tax, substantially
eliminating the double taxation on income. We expect to derive most of
our REIT income from investments in timberlands, including the sale of
standing timber through pay-as-cut sales contracts and lump sum
timber deeds. We continue to be required to pay federal corporate
income taxes on earnings of our Taxable REIT Subsidiaries (TRSs),
which include our Wood Products segment and portions of our
Timberlands and Real Estate, Energy and Natural Resources (Real
Estate & ENR) segments.

SEGMENT

Timberlands

Real Estate & ENR

Wood Products

PRODUCTS AND SERVICES

Logs, timber, recreational leases and other
products.

Real Estate (sales of timberlands) and ENR
(rights to explore for and extract hard minerals,
construction materials, oil and natural gas
production, wind and solar).

Structural lumber, oriented strand board,
engineered wood products and building materials
distribution.

HOW WE REPORT OUR RESULTS

Our report includes:

•consolidated financial statements,
•our business segments,
•estimates,
•fair value measurements and
•foreign currency translation.

Consolidated Financial Statements

Our consolidated financial statements provide an overall view of
our results and financial condition. They include our accounts
and the accounts of entities that we control, including:

•majority-owned domestic and foreign subsidiaries and
•variable interest entities in which we are the primary

beneficiary.

They do not include our intercompany transactions and accounts, which
are eliminated.

Throughout these Notes to Consolidated Financial Statements, unless
specified otherwise, references to “Weyerhaeuser,” “the company,”
“we” and “our” refer to the consolidated company.

Our Business Segments

Reportable business segments are determined based on the company’s
“management approach,” as defined by Financial Accounting Standards
Board (FASB) Accounting Standards Codification (ASC) Topic 280,

We also transfer raw materials, semi-finished materials and
end products among our business segments. Because of this
intracompany activity, accounting for our business segments
involves pricing products transferred between our business
segments at current market values.

Unallocated Items are gains or charges related to company
level initiatives or previous businesses that are not allocated to
our current business segments. They include all or a portion of
items such as share-based compensation, pension and post-
employment costs, elimination of intersegment profit in
inventory and LIFO, foreign exchange transaction gains and
losses, interest income and other as well as legacy obligations
such as environmental remediation and workers compensation.

Estimates

We prepare our financial statements according to U.S. generally
accepted accounting principles (U.S. GAAP). This requires us to
make estimates and assumptions during our reporting periods
and at the date of our financial statements. The estimates and
assumptions affect our:

•reported amounts of assets, liabilities and equity;
•disclosure of contingent assets and liabilities and
•reported amounts of revenues and expenses.
While we do our best in preparing these estimates, actual
results can and do differ from those estimates and
assumptions.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

57

Fair Value Measurements

HOW WE ACCOUNT FOR VARIOUS ITEMS

We use a fair value hierarchy in accounting for certain
nonfinancial assets and liabilities including:

•long-lived assets (asset groups) measured at fair value for an

impairment assessment;

•pension plan assets measured at fair value and
•asset retirement obligations initially measured at fair value.
The fair value hierarchy is based on inputs to valuation
techniques that are used to measure fair value that are either
observable or unobservable. Observable inputs reflect
assumptions market participants would use in pricing an asset
or liability based on market data obtained from independent
sources while unobservable inputs reflect a reporting entity’s
pricing based upon its own market assumptions.

The fair value hierarchy consists of the following three levels:

•Level 1: Inputs are unadjusted quoted prices for identical

assets or liabilities traded in an active market.

•Level 2: Inputs are quoted prices in non-active markets for

which pricing inputs are observable either directly or indirectly
at the reporting date.

•Level 3: Inputs are derived from valuation techniques in
which one or more significant inputs or value drivers are
unobservable.

Foreign Currency Translation

This section provides information about how we account for
certain key items related to:
•capital investments,
•financing our business and
•operations.

ITEMS RELATED TO CAPITAL INVESTMENTS

Key items related to accounting for capital investments pertain
to property and equipment, timber and timberlands and
impairment of long-lived assets.

Property and Equipment

We maintain property accounts on an individual asset basis
and account for them as follows:
•Improvements to and replacements of major units of property

are capitalized.

•Maintenance, repairs and minor replacements are expensed.
•Depreciation is calculated using a straight-line method at

rates based on estimated service lives.

•Costs associated with logging roads that we intend to utilize
for a period longer than one year are capitalized. These roads
are then amortized over an estimated service life.

•Cost and accumulated depreciation of property sold or retired

are removed from the accounts and the gain or loss is
included in earnings.

We translate foreign currencies into U.S. dollars in two ways:

Timber and Timberlands

•assets and liabilities — at the exchange rates in effect as of

our balance sheet date and

•revenues and expenses — at average monthly exchange

rates throughout the year.

CHANGES IN HOW WE REPORT OUR RESULTS

Changes in how we report our results come from:

•reclassification of certain balances and results from prior

years to make them consistent with our current reporting and

•accounting changes made upon our adoption of new

accounting guidance.

Reclassifications

We have reclassified certain balances and results from prior
years to be consistent with our 2020 reporting. This makes
year-to-year balances comparable. Our reclassifications had no
effect on consolidated net earnings or equity.

We carry timber and timberlands at cost less depletion.
Depletion refers to the carrying value of timber that is
harvested or sold.

Key activities affecting how we account for timber and
timberlands include:
•reforestation,
•depletion and
•forest management in Canada.
Reforestation. Generally, we capitalize initial site preparation
and planting costs as reforestation and then expense costs
after the first planting as they are incurred or over the period of
expected benefit. These expensed costs include:
•fertilization,
•vegetation and insect control,
•pruning and precommercial thinning and
•property taxes.
Accounting practices for these costs do not change when
timber becomes merchantable and harvesting starts.

Timber depletion. To determine depletion rates, we divide the
net carrying value of timber by the related volume of timber

58

estimated to be available over the growth cycle. To determine
the growth cycle volume of timber, we consider:

•regulatory and environmental constraints,
•our management strategies,
•inventory data improvements,
•growth rate revisions and recalibrations and
•known dispositions and inoperable acres.
In addition, the duration of the harvest cycle varies by
geographic region and species of timber.

Depletion rate calculations do not include estimates for:

•future silviculture or sustainable forest management costs

associated with existing stands;

•future reforestation costs associated with a stand’s final

harvest and

•future volume in connection with the replanting of a stand

subsequent to its final harvest.

We include the cost of timber harvested in the carrying values
of raw materials and product inventories. As these inventories
are sold to third parties, we include them in costs of sales.

Forest Management in Canada. We manage timberlands under
long-term licenses in various Canadian provinces that are:

•granted by the provincial governments;
•granted for initial periods of 15 to 25 years and
•renewable provided we meet reforestation, operating and

management guidelines.

Calculation of the fees we pay on the timber we harvest:

•varies from province to province,
•is tied to product market pricing and
•depends upon the allocation of land management

responsibilities in the license.

Impairment of Long-Lived Assets

We review the carrying value of long-lived assets whenever an
event or a change in circumstance indicates that the carrying
value of the asset or asset group may not be recoverable
through future operations. The carrying value is the original
cost, less accumulated depreciation and any past impairments
recorded. Impaired assets held for use are written down to fair
value, while impaired assets held for sale are written down to
fair value less cost to sell. We determine fair value based on:

•appraisals,
•market pricing of comparable assets,
•discounted value of estimated future cash flows from the

asset,

•replacement values of comparable assets and
•agreed upon sale price or offer price.

ITEMS RELATED TO FINANCING OUR BUSINESS

Key items related to financing our business include financial
instruments, cash equivalents, accounts payable and
concentration of risk.

Financial Instruments

We estimate the fair value of financial instruments where
appropriate. The assumptions we use — including the discount
rate and estimates of cash flows — can significantly affect our
fair-value amounts. Our fair values are estimates and may not
match the amounts we would realize upon sale or settlement of
our financial positions.

Cash Equivalents

Cash equivalents are investments with maturities of 90 days or
less at the date of purchase. We state cash equivalents at
cost, which approximates market.

Accounts Payable

Our banking system replenishes our major bank accounts daily
as checks we have issued are presented for payment. As a
result, we may have negative book cash balances due to
outstanding checks that have not yet been paid by the bank.
These negative balances would be included in “Accounts
payable” on our Consolidated Balance Sheet. Changes in these
negative cash balances would be reported as financing
activities in the Consolidated Statement of Cash Flows. We had
no negative book cash balances as of December 31, 2020 or
December 31, 2019.

Concentration of Risk

We disclose customers that represent a concentration of
risk. As of December 31, 2020, and December 31, 2019, no
customer accounted for 10 percent or more of our net sales.

ITEMS RELATED TO OPERATIONS

Key items related to operations include revenue recognition,
inventories, shipping and handling costs, income taxes,
pension and other post-employment benefit plans and
environmental remediation.

Revenue Recognition

Refer to Note 3: Revenue Recognition for detail on how we
account for revenue.

Inventories

We state inventories at the lower of cost or net realizable value.
Cost includes labor, materials and production overhead. LIFO

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

59

— the last-in, first-out method — applies to major inventory
products held at our U.S. domestic locations. We began to use
the LIFO method for domestic products in the 1940s as
required to conform with the tax method elected. Subsequent
acquisitions of entities added new products under the moving
average cost or FIFO — the first-in, first-out — methods and
those products continue to be recognized under those
methods. The moving average cost or FIFO method applies to
the balance of our domestic raw material and product
inventories, all material and supply inventories and all foreign
inventories.

Shipping and Handling Costs

We classify shipping and handling costs in “Costs of sales” in
the Consolidated Statement of Operations.

Income Taxes

We account for income taxes under the asset and liability
method. Unrecognized tax benefits represent potential future
funding obligations to taxing authorities if uncertain tax
positions we have taken on previously filed tax returns are not
sustained. Accrued interest and penalties related to
unrecognized tax benefits are recognized as a component of
income tax expense.

We recognize deferred tax assets and liabilities to reflect:

•future tax consequences due to differences between the

carrying amounts for financial reporting purposes and the tax
bases of certain items and

•net operating loss and tax credit carryforwards.
To measure deferred tax assets and liabilities, we:

•determine when the differences between the carrying

amounts and tax bases of affected items are expected to be
recovered or resolved and

•use enacted tax rates expected to apply to taxable income in

those years.

Pension and Other Post-Employment Benefit Plans

We recognize the overfunded or underfunded status of our
defined benefit pension and other post-employment plans on
our Consolidated Balance Sheet and recognize changes in the
funded status through comprehensive income (loss) in the year
in which the changes occur.

Actuarial valuations determine the amount of the pension and
other post-employment benefit obligations and the net periodic
benefit cost we recognize. The net periodic benefit cost
includes:

•cost of benefits provided in exchange for employees’ services

rendered during the year;

60

•interest cost of the obligations;
•expected long-term return on plan assets;
•gains or losses on plan settlements and curtailments;
•amortization of prior service costs and plan amendments
over the average remaining service period of the active
employee group covered by the plans or the average
remaining life expectancy in situations where the plan
participants affected by the plan amendment are inactive and

•amortization of cumulative unrecognized net actuarial gains
and losses — generally in excess of 10 percent of the
greater of the benefit obligation or the combination of market-
related and fair value of plan assets at the beginning of the
year — over the average remaining service period of the
active employee group covered by the plans or the average
remaining life expectancy in situations where the plan
participants are inactive.

Pension plans. We have defined benefit pension plans covering
approximately half of our employees. Determination of benefits
differs for salaried, hourly and union employees as follows:

•Salaried employee benefits are based on each employee’s
highest monthly earnings for five consecutive years during
the final 10 years before retirement.

•Hourly and union employee benefits generally are stated

amounts for each year of service.

•Union employee benefits are set through collective-bargaining

agreements.

We contribute to our U.S. and Canadian pension plans
according to established funding standards. The funding
standards for the plans are:

•U.S. pension plans — according to the Employee Retirement

Income Security Act of 1974 and

•Canadian pension plans — according to the applicable

provincial pension act and the Income Tax Act.

Post-employment benefits other than pensions. We provide
certain post-employment health care and life insurance benefits
for some retired employees. In some cases, we pay a portion of
the cost of the benefit. Note 9: Pension and Other Post-
Employment Benefit Plans provides additional information
about our post-employment benefit plans.

Estimates for pension and other post-employment benefit
plans. Estimates we use in accounting for our pension and
other post-employment benefit plans include the:

•fair value of our plan assets;
•expected long-term rate of return on plan assets and
•discount rates.
At the end of every year, we review our estimates with external
advisers and make adjustments as appropriate. We use these
estimates to calculate plan asset and liability information as of

year-end as well as pension and post-employment expense for
the following year. Actual experience that differs from our
estimates and subsequent changes in our estimates could
have a significant effect on our financial position, results of
operations and cash flows.

Fair value of plan assets. Plan assets are assets of the
pension plan trusts that fund the benefits provided under the
pension plans. The fair value of our plan assets estimates the
amount that would be received if we were to sell each asset in
an orderly transaction between market participants at the
reporting date. We estimate the fair value of these assets
based on the information available during the year-end reporting
process.

Refer to Note 9: Pension and Other Post-Employment Benefit
Plans for information about the assets held within our pension
plans and their related valuation methods.

Expected long-term rate of return on plan assets. Our
expected long-term rate of return is our estimate of the return
that our plan assets will earn over time. This rate is used in
determining the net periodic benefit or cost we recognize for our
plans.

Factors we consider in determining our expected long-term rate
of return include:

•historical returns for a portfolio of assets similar to our

expected allocation and

NOTE 2: BUSINESS SEGMENTS

•expected future performance of similar asset classes.
The actual return on plan assets in any given year may vary
from our expected long-term rate of return. Actual returns on
plan assets affect the funded status of the plans. Differences
between actual returns on plan assets and the expected long-
term rate of return are reflected as adjustments to accumulated
other comprehensive loss, a component of total equity.

Discount rates. Discount rates are used to estimate the net
present value of our plan obligations. The discount rates are
determined at the measurement date by matching current spot
rates of high-quality corporate bonds with maturities similar to
the timing of expected cash outflows for benefits.

Environmental Remediation

We accrue losses associated with environmental remediation
obligations when such losses are probable and reasonably
estimable. Future expenditures for environmental remediation
obligations are not discounted to their present value.
Recoveries of environmental remediation costs from other
parties are recorded as assets when the recovery is deemed
probable and does not exceed the amount of losses previously
recorded.

Our business segments and how we account for those segments are discussed in Note 1: Summary of Significant Accounting
Policies. This note provides key financial data by business segment.

KEY FINANCIAL DATA BY BUSINESS SEGMENT

Sales and Net Contribution (Charge) to Earnings

DOLLAR AMOUNTS IN MILLIONS

Sales to unaffiliated customers

2020

2019

2018

Intersegment sales

2020

2019

2018

Net contribution (charge) to earnings

2020

2019

2018

TIMBERLANDS

REAL ESTATE
& ENR

WOOD
PRODUCTS

UNALLOCATED
ITEMS AND
INTERSEGMENT
ELIMINATIONS

CONSOLIDATED

$

$

$

$

$

$

$

$

$

1,466 $

1,618 $

1,873 $

471 $

503 $

537 $

455 $

347 $

583 $

276 $

313 $

306 $

— $

1 $

1 $

86 $

144 $

127 $

5,790 $

4,623 $

5,297 $

— $

— $

— $

1,340 $

353 $

838 $

— $

— $

— $

(471) $

(504) $

(538) $

(456) $

(679) $

(366) $

7,532

6,554

7,476

—

—

—

1,425

165

1,182

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

61

Management evaluates segment performance based on the net contribution (charge) to earnings of the respective segments. An
analysis and reconciliation of our business segment information to the consolidated financial statements follows:

Reconciliation of Net Contribution to Earnings to Net Earnings (Loss)

DOLLAR AMOUNTS IN MILLIONS

Net contribution to earnings

Interest expense, net of capitalized interest

Income (loss) before income taxes

Income taxes

Net earnings (loss)

Additional Financial Information

DOLLAR AMOUNTS IN MILLIONS

Depreciation, depletion and amortization

2020

2019

2018

Capital expenditures

2020

2019

2018

Total Assets

DOLLAR AMOUNTS IN MILLIONS

Total assets(1)

2020

2019

2020

1,425 $

(443)

982

(185)

2019

165 $

(378)

(213)

137

797 $

(76) $

2018

1,182

(375)

807

(59)

748

$

$

TIMBERLANDS

REAL ESTATE &
ENR

WOOD
PRODUCTS

UNALLOCATED
ITEMS

CONSOLIDATED

$

$

$

$

$

$

257 $

301 $

319 $

104 $

112 $

117 $

14 $

14 $

14 $

— $

— $

— $

195 $

191 $

149 $

176 $

257 $

306 $

6 $

4 $

4 $

1 $

15 $

4 $

472

510

486

281

384

427

TIMBERLANDS
AND
REAL ESTATE & ENR

WOOD
PRODUCTS

UNALLOCATED
ITEMS

CONSOLIDATED

$

$

12,874 $

13,130 $

2,619 $

2,452 $

818 $

824 $

16,311

16,406

(1) Assets attributable to the Real Estate & ENR business segment are combined with total assets for the Timberlands segment as we do not produce separate balance sheets internally.

NOTE 3: REVENUE RECOGNITION

A majority of our revenue is derived from sales of delivered logs
and manufactured wood products. We account for revenue in
accordance with ASC Topic 606, Revenue from Contracts with
Customers, which we adopted on January 1, 2018, using the
cumulative effect method. The adoption of the new revenue
recognition guidance did not materially affect our Consolidated
Statement of Operations, Consolidated Balance Sheet or
Consolidated Statement of Cash Flows.

PERFORMANCE OBLIGATIONS

A performance obligation, as defined in ASC Topic 606, is a
promise in a contract to transfer a distinct good or service to a
customer. A contract’s transaction price is allocated to each

distinct performance obligation and recognized as revenue at
the point in time, or over the period, in which the performance
obligation is satisfied.

Performance obligations associated with delivered log sales are
typically satisfied when the logs are delivered to our customers’
mills or delivered to an ocean vessel in the case of export
sales. Performance obligations associated with the sale of
wood products are typically satisfied when the products are
shipped. We have elected, as an accounting policy, to treat
shipping and handling that is performed after a customer
obtains control of the product as an activity required to fulfill
the promise to transfer the good; therefore we will not evaluate
this requirement as a separate performance obligation.

62

Customers are generally invoiced shortly after logs are
delivered or after wood products are shipped, with payment
generally due within a month or less of the invoice date. ASC
Topic 606 requires entities to consider significant financing
components of contracts with customers, though allows for the
use of a practical expedient when the period between
satisfaction of a performance obligation and payment receipt is
one year or less. Given the nature of our revenue transactions,
we have elected to utilize this practical expedient.

Performance obligations associated with real estate sales are
generally met when placed into escrow and all conditions of
closing have been satisfied.

CONTRACT ESTIMATES

Substantially all of our performance obligations are satisfied as
of a point in time. Therefore, there is little judgment in
determining when control transfers for our business segments
as described above.

The transaction price for log sales generally equals the amount
billed to our customer for logs delivered during the accounting
period. For the limited number of log sales subject to a long-
term supply agreement, the transaction price is variable but is
known at the time of billing. For wood products sales, the
transaction price is generally the amount billed to the customer
for the products shipped but may be reduced slightly for
estimated cash discounts and rebates.

There are no significant contract estimates related to the real
estate business.

CONTRACT BALANCES

In general, customers are billed and a receivable is recorded as
we ship and/or deliver wood products and logs. We generally
receive payment shortly after products have been received by
our customers. Contract asset and liability balances are
immaterial.

For real estate sales, the company receives the entire
consideration in cash at closing.

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

63

MAJOR PRODUCTS

A Reconciliation of Revenue Recognized by our Major Products:

DOLLAR AMOUNTS IN MILLIONS

Net sales to unaffiliated customers:

Timberlands segment

Delivered logs:

West

Domestic sales

Export grade sales

Subtotal West

South

North(1)

Subtotal delivered logs sales

Stumpage and pay-as-cut timber

Recreational and other lease revenue

Other(2)

Net sales attributable to Timberlands segment

Real Estate & ENR segment

Real estate

Energy and natural resources

Net sales attributable to Real Estate & ENR segment

Wood Products segment

Structural lumber

Oriented strand board

Engineered solid section

Engineered I-joists

Softwood plywood

Medium density fiberboard

Complementary building products

Other(3)

Net sales attributable to Wood Products segment

Total

2020

2019

2018

$

329 $

375 $

391

720

573

52

365

740

640

92

503

484

987

625

99

1,345

1,472

1,711

19

63

39

42

61

43

59

59

44

1,466

1,618

1,873

202

74

276

2,602

1,013

505

316

171

171

676

336

225

88

313

229

77

306

1,892

2,258

632

510

323

161

166

602

337

891

521

336

200

177

584

330

5,790

4,623

5,297

$ 7,532 $ 6,554 $ 7,476

(1) In November 2019, we sold our Michigan timberlands and in March 2020, we sold our Montana timberlands. Refer to Note 4: Timberland Acquisitions and Divestitures for further

information on these divestitures.

(2) Other Timberlands sales includes sales of seeds and seedlings from our nursery operations as well as wood chips.
(3) Other Wood Products sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations.

64

NOTE 4: TIMBERLAND ACQUISITIONS AND
DIVESTITURES

OREGON ACQUISITION AND DIVESTITURE

On September 1, 2020, we announced an agreement to sell
149,000 acres of southern Oregon timberlands and a separate
agreement to purchase 85,000 acres of mid-coastal Oregon
timberlands. These transactions were structured as a like-kind
exchange for tax purposes.

On November 17, 2020, we completed the sale of southern
Oregon timberlands for $381 million in cash proceeds, which is
net of purchase price adjustments and closing costs. As a
result of the sale, we recorded a $182 million gain in the
Timberlands segment. This sale was not considered a strategic
shift that had, or will have, a major effect on our operations or
financial results and therefore did not meet the requirements
for presentation as discontinued operations.

On November 19, 2020, we completed the purchase of
mid-coastal Oregon timberlands for $425 million, which is net
of purchase price adjustments. As a result of the purchase, we
recorded $421 million of timberland assets in “Timber and
timberlands at cost, less depletion” and $4 million of related
assets in “Property and equipment, net” on our Consolidated
Balance Sheet.

MONTANA AND MICHIGAN DIVESTITURES

On December 17, 2019, we announced an agreement to
sell 630,000 acres of Montana timberlands, which was part of
our Timberlands business segment. On March 26, 2020, we
completed the sale for $145 million in cash proceeds, which is
net of purchase price adjustments and closing costs.

On September 16, 2019, we announced an agreement to sell
555,000 acres of Michigan timberlands, which was part of our
Timberlands business segment. On November 13, 2019, we
completed the sale for $297 million of cash proceeds, which is
net of purchase price adjustments and closing costs. As a
result of the sale, we recorded a $48 million gain in the
Timberlands segment.

The Montana and Michigan divestitures were not considered
strategic shifts that had or will have a major effect on our
operations or financial results and therefore did not meet the
requirements for presentation as discontinued operations.
However, the related assets for the Montana transaction met
the relevant criteria to be classified as held for sale which
changed their presentation from long-term to current on our
Consolidated Balance Sheet as of December 31, 2019. The
designation as held for sale required us to record the related
net assets at the lower of their current cost basis or fair value,
less an amount of estimated selling costs, and thus, we
recognized a noncash pretax impairment charge of $80 million

in fourth quarter 2019. As a result, no material gain or loss
was recorded upon completion of the sale in first quarter 2020.

As of December 31, 2019, “Assets held for sale” had a
balance of $140 million, which consisted primarily of
timberlands and other related assets, after the impairment
charge.

NOTE 5: NET EARNINGS (LOSS) PER SHARE

Our basic and diluted earnings (loss) per share for the last
three years were:
•$1.07 in 2020,
•$(0.10) in 2019 and
•$0.99 in 2018.

HOW WE CALCULATE BASIC AND DILUTED NET EARNINGS
(LOSS) PER SHARE

Basic earnings (loss) per share is net earnings (loss) available
to common shareholders divided by the weighted average
number of our outstanding common shares, including stock
equivalent units where there is no circumstance under which
those shares would not be issued.

Diluted earnings (loss) per share is net earnings (loss) available
to common shareholders divided by the sum of the:
•weighted average number of our outstanding common shares

and

•the effect of our outstanding dilutive potential common

shares.

Dilutive potential common shares may include:
•outstanding stock options,
•restricted stock units and
•performance share units.

Calculation of Weighted Average Number of Outstanding
Common Shares – Dilutive

SHARES IN THOUSANDS

Weighted average number of
outstanding shares — basic

Dilutive potential common shares:

Stock options

Restricted stock units

Performance share units

Total effect of outstanding dilutive
potential common shares

Weighted average number of
outstanding common shares —
dilutive

2020

2019

2018

746,931

745,897

754,556

313

403

252

968

—

—

—

—

1,310

566

395

2,271

747,899

745,897

756,827

We use the treasury stock method to calculate the dilutive
effect of our outstanding stock options, restricted stock units

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

65

and performance share units. Share-based payment awards
that are contingently issuable upon the achievement of
specified performance or market conditions are included in our
diluted earnings per share calculation in the period in which the
conditions are satisfied.

NOTE 7: PROPERTY AND EQUIPMENT, NET

Property and equipment includes land, buildings and
improvements, machinery and equipment, roads and other
items.

SHARES EXCLUDED FROM DILUTIVE EFFECT

The following shares were not included in the computation of
diluted earnings (loss) per share because they were either
antidilutive or the required performance or market conditions
were not met. Some or all of these shares may be dilutive
potential common shares in future periods.

Potential Shares Not Included in the Computation of Diluted
Earnings (Loss) per Share

SHARES IN THOUSANDS

Stock options

Restricted stock units

Performance share units

NOTE 6: INVENTORIES

2020

2019

2018

2,107

2,631

2,402

—

781

477

—

1,131

1,080

Carrying Value of Property and Equipment and Estimated
Service Lives

DOLLAR AMOUNTS IN MILLIONS

RANGE OF LIVES

DECEMBER 31,
2020

DECEMBER 31,
2019

Property and equipment,
at cost:

Land

Buildings and
improvements

Machinery and
equipment

Roads

Other

Total cost

Accumulated
depreciation and
amortization

Property and
equipment, net

N/A

15-40

5-25

10-35

3-10

$

84 $

1,049

3,486

725

101

5,445

(3,432)

87

999

3,425

742

193

5,446

(3,477)

$

2,013 $

1,969

Inventories include raw materials, work-in-process, finished
goods as well as materials and supplies, as shown below:

SERVICE LIVES AND DEPRECIATION

DECEMBER 31,
2020

DECEMBER 31,
2019

In general, additions are classified into components, each with
its own estimated useful life as determined at the time of
purchase.

DOLLAR AMOUNTS IN MILLIONS

LIFO inventories:

Logs

Lumber, plywood, panels and
fiberboard

Other products

Moving average cost or FIFO
inventories:

Logs

Lumber, plywood, panels, fiberboard
and engineered wood products

Other products

Materials and supplies

$

24 $

59

9

64

84

100

103

19

82

10

28

84

98

95

Total

$

443 $

416

If we used FIFO for all LIFO inventories, our stated inventories
would have been higher by $76 million as of December 31,
2020 and December 31, 2019.

HOW WE ACCOUNT FOR OUR INVENTORIES

The “Inventories” section of Note 1: Summary of Significant
Accounting Policies provides details about how we account for
our inventories.

66

Depreciation and amortization expense for property and
equipment was:

•$243 million in 2020,
•$240 million in 2019 and
•$197 million in 2018.

NOTE 8: RELATED PARTIES

This note provides details about our transactions with related
parties. For the years presented, our material related parties
have consisted of variable interest entities.

From 2002 through 2004, we sold certain nonstrategic
timberlands. As a result of these sales, buyer-sponsored and
monetization variable interest entities, or special purpose
entities (SPEs), were formed. We were the primary beneficiary
and consolidated the assets and liabilities of the SPEs involved
in these transactions.

The assets of the buyer-sponsored SPEs were financial
investments which consisted of bank guarantees. These bank
guarantees were in turn backed by bank notes, which were the
liabilities of the monetization SPEs. Interest earned from the

financial investments within the buyer-sponsored SPEs was
used to pay interest accrued on the corresponding monetization
SPE’s note.

We had an equity interest in the monetization SPEs, but no
ownership interest in the buyer-sponsored SPEs. The following
disclosures refer to assets of buyer-sponsored SPEs and
liabilities of monetization SPEs. However, because these SPEs
were distinct legal entities:

•Assets of the SPEs were not available to satisfy our liabilities

or obligations.

•Liabilities of the SPEs were not our liabilities or obligations.
During first quarter 2020, we received $362 million in proceeds
from our final buyer-sponsored SPE at maturity. The
corresponding $302 million in liabilities of this SPE was paid in
third quarter 2019. During first quarter 2019, we received
$253 million in proceeds from a buyer-sponsored SPE at
maturity. The corresponding $209 million in liabilities of this
SPE was paid in fourth quarter 2018.

Our Consolidated Statement of Operations includes:

•Interest income on buyer-sponsored SPE investments of:

– $22 million in 2019 and
– $34 million in 2018.

•Interest expense on monetization SPE notes of:

– $12 million in 2019 and
– $29 million in 2018.

We had minimal interest income on buyer-sponsored SPE
investments and no interest expense on monetization SPE
notes in 2020.

The weighted average interest rate on our buyer-sponsored
SPEs was 5.5 percent during 2020, 2019 and 2018. The
interest rate on the final monetization SPE that matured in
2019 and the weighted average interest rate on our
monetization SPEs during 2018 was 5.6 percent.

NOTE 9: PENSION AND OTHER POST-EMPLOYMENT
BENEFIT PLANS

This note provides details about defined benefit and defined
contribution plans we sponsor for our employees. The “Pension
and Other Post-Employment Benefit Plans” section of Note 1:
Summary of Significant Accounting Policies provides information
about how we account for pension and other post-employment
plans and benefits.

DEFINED BENEFIT PLANS WE SPONSOR

OVERVIEW OF PLANS

The defined benefit pension plans we sponsor in the U.S. and
Canada differ according to each country’s requirements. In the

U.S., we have plans that qualify under the Internal Revenue
Code (qualified plans), as well as plans for select employees
that provide additional benefits not qualified under the Internal
Revenue Code (nonqualified plans). In Canada, we have plans
that are registered under the Income Tax Act and applicable
provincial pension acts (registered plans), as well as
nonregistered plans for select employees that provide
additional benefits that may not be registered under the Income
Tax Act or provincial pension acts (nonregistered plans). We
also sponsor other post-employment benefit (OPEB) plans in
the U.S. and Canada, including retiree medical and life
insurance plans.

We sponsor various defined contribution plans for our U.S. and
Canadian salaried and hourly employees. Our contributions to
these plans were $27 million, $25 million and $22 million in
2020, 2019 and 2018, respectively.

Actions to Reduce Pension Plan Obligations

As part of our continued efforts to reduce pension plan
obligations, we transferred approximately $0.8 billion and
$1.5 billion of U.S. qualified pension plan assets and liabilities
to insurance companies through the purchase of group annuity
contracts in December 2020 (2020 Retiree Annuity Purchase)
and January 2019 (2019 Retiree Annuity Purchase),
respectively. In connection with these transactions, we
recorded noncash pretax settlement charges of $253 million
and $449 million during 2020 and 2019, respectively. These
settlement charges accelerated the recognition of previously
unrecognized losses in “accumulated other comprehensive
loss,” that would have been recognized in subsequent periods.

The 2019 Retiree Annuity Purchase triggered a remeasurement
of plan assets and liabilities. We updated the discount rate
used to measure our projected benefit obligation for the U.S.
qualified pension plan as of January 31, 2019, as well as our
discount rate used to calculate the related net periodic benefit
cost for the remainder of 2019 to 4.30 percent from 4.40
percent. All other assumptions remained unchanged. The net
effect of the remeasurement was a $24 million reduction in
funded status, primarily driven by the decrease in discount rate.
This change in funded status was reflected on our Consolidated
Balance Sheet as of March 31, 2019. Given the timing of the
2020 Retiree Annuity Purchase, the plan remeasurement
triggered as a result of the transaction was conducted as part
of our annual valuation process.

Additionally, we settled the assets and liabilities associated
with three Canadian registered pension plans through the
purchase of group annuity contracts in October 2019. As a
result of the transaction, we recorded a noncash pretax
settlement charge of $6 million.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

67

During 2018, we offered select U.S. terminated vested plan
participants the opportunity to elect an immediate lump sum
distribution. Lump sum distributions were paid from plan
assets totaling $664 million. We recorded a settlement charge
of $200 million during 2018 related to this transaction. The
settlement triggered a plan remeasurement; however, due to
the short period between the settlement and our normal
year-end remeasurement, the effect on net periodic benefit cost
was insignificant.

To maintain the U.S. qualified pension plan’s funded status in
connection with these transactions, we contributed
$300 million to the plan during third quarter 2018. Refer
to Note 20: Income Taxes for details on the tax effects of this
transaction.

68

FUNDED STATUS OF PLANS

The funded status of the plans we sponsor is determined by comparing the projected benefit obligation with the fair value of plan
assets at the end of the year. The following table demonstrates how our plans’ funded status is reflected on the Consolidated
Balance Sheet.

DOLLAR AMOUNTS IN MILLIONS

Projected benefit obligation at beginning of year

$

4,260

$

5,263

$

151

$

PENSION

OPEB

2020

2019

2020

Service cost

Interest cost

Actuarial (gains) losses(1)

Plan participants’ contributions

36

139

540

—

32

160

510

—

Benefits paid, including lump sum and annuity transfers

(1,025)

(1,745)

Other, including foreign currency translation

Projected benefit obligation at end of year

Fair value of plan assets at beginning of year (estimated)

Actual return on plan assets(2)

Employer contributions and benefit payments

Plan participants’ contributions

Benefits paid, including lump sum and annuity transfers

Other, including foreign currency translation

Fair value of plan assets at end of year (estimated)

Presentation on our Consolidated Balance Sheet:(3)

Noncurrent assets

Current liabilities

Noncurrent liabilities

Funded status(4)

Accumulated benefit obligation at end of year

Actuarial Assumptions Used in Estimating Our Pension and OPEB Benefit Obligations:

Discount rate(5)

Rate of compensation increase(6)

Lump sum or installment distributions election(7)

Healthcare cost trend rate:

Assumed for next year(8)

Ultimate(8)

Year when rate will reach ultimate(8)

$

$

$

$

$

$

2019

166

—

6

(8)

2

(17)

2

151

18

1

15

2

(17)

—

19

—

(8)

(124)

(132)

N/A

3.00%

N/A

N/A

—

4

5

2

(14)

1

149

19

—

8

2

(14)

—

15

$

$

$

$

$

21

3,971

3,719

490

21

—

(1,025)

25

$

$

40

4,260

4,930

465

30

—

(1,745)

39

3,230

$

3,719

$

58

$

47

$

— $

(17)

(782)

(741) $

3,855

$

(19)

(569)

(8)

(126)

(541) $

(134) $

4,166

N/A

2.50%

3.10 – 3.40%

2.10 – 2.40%

2.00 – 13.00%

2.00 – 13.00%

60.00%

60.00%

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

4.50 – 6.80%

4.50 – 7.30%

4.00 – 4.50%

4.00 – 4.50%

2037 – 2040

2037 – 2039

(1) Actuarial (gains) losses are primarily due to year over year changes in discount rates.
(2) Includes adjustments for final fair value of plan assets.
(3) Assets and liabilities on our Consolidated Balance Sheet are different from the cumulative income or expense that we have recorded associated with the plans. The differences are
actuarial gains and losses and prior service costs and credits that are deferred and amortized into periodic benefit costs in future periods. Unamortized amounts are recorded in
“Accumulated Other Comprehensive Loss”, which is a component of total equity on our Consolidated Balance Sheet. The “Accumulated Other Comprehensive Loss” section of Note 15:
Shareholders’ Interest details changes in these amounts by component.

(4) For pension plans with a projected benefit obligation exceeding plan assets, the projected benefit obligation and fair value of plan assets were $3.1 billion and $2.3 billion at

December 31, 2020, respectively, and $3.4 billion and $2.8 billion at December 31, 2019, respectively. For pension plans with an accumulated benefit obligation exceeding plan assets,
the accumulated benefit obligation and fair value of plan assets were $3.0 billion and $2.3 billion at December 31, 2020, respectively, and $3.3 billion and $2.8 billion at December 31,
2019, respectively.

(5) For the U.S. defined benefit plans, the discount rate assumption was 2.5% and 3.4% for 2020 and 2019, respectively. For the Canadian defined benefit plans, the discount rate

assumption was 2.5% and 3.1% for 2020 and 2019, respectively. For U.S. OPEB plans, the discount rate assumption was 2.1% and 3.0% for 2020 and 2019, respectively. For Canadian
OPEB plans, the discount rate assumption was 2.4% and 3.0% for 2020 and 2019, respectively. For lump sum distributions (for U.S. qualified salaried and nonqualified plans only), the
discount rate assumption was based on the PPA Phased Table: Interest and mortality assumptions as mandated by the Pension Protection Act of 2006.

(6) For the U.S. defined benefit plans, the rate of compensation increase assumption for both 2020 and 2019 was between 2.00% — 13.00% for salaried and hourly participants and was
decreasing with participant age. For the Canadian defined benefit plans, the rate of compensation increase assumption was 3.25% and 3.00% for salaried and hourly participants,
respectively.

(7) U.S. qualified salaried and nonqualified plans only.
(8) For U.S. OPEB plans, the healthcare cost trend rate assumption for the next year for Pre-Medicare was 6.80% and 7.30% for 2020 and 2019, respectively. The healthcare cost trend rate

assumption for Health Reimbursement Account (HRA) was 4.50% for both 2020 and 2019. The ultimate healthcare cost trend rate was 4.50% and the assumption for the year the ultimate
healthcare cost trend rate is reached was 2037 in both 2020 and 2019. For Canadian OPEB plans, the healthcare cost trend rate was 5.30% and 5.40% for 2020 and 2019, respectively.
The ultimate healthcare cost trend rate was 4.00% and the assumption for the year the ultimate healthcare cost trend rate is reached was 2040 and 2039 for 2020 and 2019,
respectively.

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

69

PENSION ASSETS

Our Investment Policies and Strategies

Assets within our U.S. and Canadian pension trusts were
invested as follows:

Our investment policies and strategies guide and direct how the
funds are managed for the benefit plans we sponsor. These
funds include our:

•U.S. Pension Trust — funds our U.S. qualified pension plans;
•Canadian Pension Trust — funds our Canadian registered

pension plans and

•Retirement Compensation Arrangements — fund a portion of

our Canadian nonregistered pension plans.

U.S. and Canadian Pension Trusts

At the end of 2018, we began to shift pension plan assets to
an allocation that more closely aligns with our pension plan
liability profile. Our former investment strategy included
investments primarily in hedge funds and private equity funds.
These asset classes are now in redemption and run-off mode.
However, given the long-term nature of these investments, they
will continue to comprise a portion of the plan assets for
several years. We expect all investments in redemption to be
redeemed at amounts materially consistent with their net asset
values (NAV). As these investments are redeemed or liquidated,
cash proceeds available for investment will be invested in
accordance with our revised investment strategy.

The revised investment strategy targets a percentage allocation
to growth assets and a percentage allocation to liability hedging
assets based on each plan’s funded status. We expect to
increase the allocation to liability hedging assets over time as
the funded status of the pension plan improves. Growth assets
include investments in global equities, hedge funds (which are
in redemption) and private equity assets (which are in run-off
mode). Liability hedging assets include corporate credit and
government issued fixed income securities as well as treasury
futures selected to align with the plan liabilities.

Cash and short-term investments(1)

3.6%

3.2%

DECEMBER 31,
2020

DECEMBER 31,
2019

Fixed income investments:(2)

Corporate

Government

Repurchase agreements

Public equity investments(3)

Hedge funds and related
investments(4)(5)

Private equity and related
investments(5)(6)

Derivative instruments, net(7)

Accrued liabilities

Total

30.6

31.8

(2.8)

—

6.9

30.0

0.2

(0.3)

33.9

25.4

(4.7)

0.1

14.3

27.7

0.3

(0.2)

100.0%

100.0%

(1) Cash and short-term investments are valued at cost, which approximates market.
(2) Fixed income investments include publicly traded corporate and government issued debt.
These bonds have varying maturities, credit quality and sector exposure and are selected
to align with the duration of our plan liabilities. Additionally, our fixed income portfolio
includes repurchase agreements, which represent short-term borrowings to hedge
against interest rate risk. We have an obligation to return the cash related to these
borrowings in accordance with the agreements, which are collateralized by our
government bonds. Fixed income investments are valued at exit prices quoted in active
or non-active markets or based on observable inputs.

(3) Public equity investments are valued at exit prices quoted in active markets.
(4) Hedge funds and related investments are privately-offered managed pools primarily
structured as limited liability entities. General members or partners of these limited
liability entities serve as portfolio managers and are thus responsible for the fund’s
underlying investment decisions. Underlying investments within these funds may include
long and short public and private equities, corporate, mortgage and sovereign debt,
options, swaps, forwards and other derivative positions. These funds have varying
degrees of leverage, liquidity and redemption provisions.

(5) These investments are primarily valued based on the NAVs of the funds. These values
represent the per-unit price at which new investors are permitted to invest and existing
investors are permitted to exit. When NAVs as of the end of the year have not been
received, we estimate fair value by adjusting the most recently reported NAVs for market
events and cash flows between the interim date and the end of the year.

(6) Private equity and related investments are investments in private equity, mezzanine,
distressed, co-investments and other structures. Private equity funds generally
participate in buyout and venture capital strategies through unlisted equity and debt
instruments. These funds may also borrow at the underlying entity level. Mezzanine and
distressed funds generally invest in the debt of public or private companies with
additional participation through warrants or other equity options.

(7) Derivative instruments have historically been comprised of swaps, futures, forwards or

options. Consistent with our shift in asset strategy, our positions in derivative
instruments have been significantly reduced. At December 31, 2020, only a small
amount of futures remain in our portfolio. Derivative instruments are valued based upon
valuation statements received from each derivative’s counterparty.

70

This risk is mitigated through
investing a significant portion
of plan assets in liquid
instruments such as publicly
traded fixed income.

Liquidity risk is the risk that
the trust will not be able to
settle liabilities such as
payments to participants,
counterparties, and service
providers. Private equity and
hedge fund investments
generally have less liquidity
than publicly traded
investments.

Valuation of Our Plan Assets

Pension assets are stated at fair value or NAV as of the
reporting date. Fair value is based on the amount that would be
received to sell an asset or paid to settle a liability in an orderly
transaction between market participants at the reporting date.
We do not consider forced or distressed sale scenarios.
Instead, we consider both observable and unobservable inputs
that reflect assumptions applied by market participants when
setting the exit price of an asset or liability in an orderly
transaction within the principal market for that asset or liability.

We value the pension plan assets based upon the observability
of exit pricing inputs and classify pension plan assets based
upon the lowest level input that is significant to the fair value
measurement of the pension plan assets in their entirety. Refer
to Note 1: Summary of Significant Accounting Policies for
details on the fair value hierarchy.

Investments for which fair value is measured using the NAV per
share as a practical expedient are not categorized within the
fair value hierarchy.

The net pension plan assets, when categorized in accordance
with this fair value hierarchy, are as follows.

Retirement Compensation Arrangements

Retirement compensation arrangements fund a portion of our
Canadian nonregistered pension plans. As required by
Canadian tax rules, approximately 50 percent of these assets
are invested into a noninterest-bearing refundable tax account
held by the Canada Revenue Agency. This portion of the
portfolio does not earn returns. The remaining portion is
invested in a portfolio of equities.

Managing Risk

Investments and contracts are subject to risks including market
price, interest rate, credit, currency and liquidity risks. The
following provides an overview of these risks and describes
governance processes and actions we take to mitigate these
risks on our pension plan asset portfolios.

RISK

MITIGATION

Market price risk is the risk
that market fluctuations will
adversely affect the value of
plan assets.

Interest rate risk exists with
respect to both assets and
liabilities and is the risk that
a change in interest rates will
adversely affect the fair value
of interest rate securities or
liabilities, thereby affecting
the overall funded status.

Credit risk is the risk that
counterparties’ failure to
discharge their obligations
could affect cash flows. The
trusts have exposure primarily
through investments in fixed
income securities.

Currency risk arises from
holding plan assets
denominated in a currency
other than the currency in
which its liabilities are
settled.

The trusts mitigate market
price risk by investing in a
diversified portfolio. In
addition, we and our
investment advisers perform
regular monitoring with
ongoing qualitative
assessments, quantitative
assessments, and
comprehensive investment
and operational due diligence.

This risk is mitigated by
investing a portion of trust
assets in fixed income
investments which more
closely match the plan
liabilities.

This risk is mitigated by
investing in a diversified
portfolio, initial due diligence,
and ongoing monitoring
processes.

This risk is mitigated by
investing a portion of the
Canadian plan assets in
Canadian dollar fixed income
investments.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

71

DOLLAR AMOUNTS IN MILLIONS

2020

2019

Pension trust investments:

Cash and short-term investments

Fixed income investments:

Corporate

Government

Repurchase agreements

Public equity investments

Hedge funds and related investments(1)

Private equity and related investments(1)

Derivative instruments(2)

LEVEL 1

LEVEL 2

LEVEL 3

TOTAL

LEVEL 1

LEVEL 2

LEVEL 3

TOTAL

$

117

$ — $

— $

117 $

120 $

— $

— $

120

—

—

—

—

—

—

—

985

1,021

(90)

—

—

—

8

—

—

—

—

4

68

—

72

—

—

—

985

1,021

(90)

—

4

68

8

—

—

—

4

—

—

—

1,260

941

(176)

—

—

—

10

2,113

124

2,035

5

5

10

$ 2,123

5

5

10

—

—

—

—

—

—

—

13

86

—

99

—

—

—

1,260

941

(176)

4

13

86

10

2,258

5

5

10

$ 2,268

Total pension trust investments measured at fair value(1)

117

1,924

Canadian nonregistered plan assets:

Cash and short-term investments

Public equity investments

Total Canadian nonregistered plan assets measured at fair value

Total plan assets measured at fair value(1)

5

5

10

—

—

—

(1) December 31, 2020 and 2019, excludes $1,116 million and $1,460 million of hedge fund and private equity investments that are measured at fair value using the NAV per share (or its
equivalent) as a practical expedient, which are not required to be classified in the fair value hierarchy. Additionally, December 31, 2020 and 2019 both exclude $9 million of accrued
liabilities.

(2) Derivative instruments include futures contracts. The fair value and aggregate notional value of these contracts were $8 million and $449 million at December 31, 2020, respectively, and

$10 million and $813 million at December 31, 2019, respectively.

The availability of observable market data is monitored to
assess the appropriate classification of financial instruments
within the fair value hierarchy. Changes in economic conditions
or model-based valuation techniques may require the transfer
of financial instruments from one fair value level to another. In
such instances, the transfer is reported at the beginning of the
reporting period. We evaluate the significance of transfers
between levels based upon the nature of the financial
instrument and size of the transfer relative to total net assets
available for benefits.

A reconciliation of the beginning and ending balances of the
pension plan assets measured at fair value using significant
unobservable inputs (Level 3) is presented below:

DOLLAR AMOUNTS IN MILLIONS

Beginning
Balance

Realized
Gain
(Loss)

Unrealized
Gain
(Loss)

Purchases,
Sales,
Settlements,
Net

Transfers
In (Out),
Net

Ending
Balance

$

13 $

3 $

(4) $

(9) $

1 $

4

86

—

(1)

(9)

(8)

68

2020

Hedge
funds and
related
investments

Private
equity and
related
investments

Total

$

99 $

3 $

(5) $

(18) $

(7) $

72

Beginning
Balance

Realized
Gain
(Loss)

Unrealized
Gain
(Loss)

Purchases,
Sales,
Settlements,
Net

Transfers
In (Out),
Net

Ending
Balance

$

3 $

1 $

(1) $

(3) $

13 $

13

65

(1)

—

(3)

25

86

262

237

(262)

(237)

—

—

2019

Hedge
funds and
related
investments

Private
equity and
related
investments

Derivative
instruments,
net

Total

$

330 $

237 $ (263) $ (243) $

38 $

99

72

Net periodic benefit
cost:

Service cost

Interest cost

Expected return on
plan assets

Amortization of
actuarial loss

Amortization of prior
service cost (credit)

Net periodic benefit
cost

Actuarial
Assumptions Used in
Estimating Our
Pension and OPEB
Net Periodic Benefit
Cost:

Discount rate(1)(2)

Expected return on
assets(3)

Rate of
compensation
increase(4)

Lump sum or
installment
distributions
election(5)

Weighted
healthcare cost
trend rate(6)

ACTIVITY OF PLANS
Net Periodic Benefit Cost

Our net periodic benefit cost and the assumptions used to
estimate it are shown in the following table.

DOLLAR AMOUNTS IN MILLIONS

PENSION

OPEB

2020

2019

2018

2020

2019

2018

$

36 $

32 $

37 $ — $ — $ —

139

160

236

(234)

(223)

(399)

122

112

225

3

4

3

4

—

4

(1)

—

6

—

7

(5)

—

7

—

8

(8)

—

7

Settlement charges

253

455

200

$ 319 $

540 $

302 $

7 $

8 $

3.10 –
3.40%

3.70 –
4.40%

3.50 –
3.70%

3.00% 3.70 –
4.20%

3.40 –
3.50%

6.50%

7.00%

8.00%

N/A

N/A

N/A

2.00 –
13.00%

2.00 –
13.00%

2.00 –
13.00%

N/A

N/A

N/A

60.00% 60.00% 60.00%

N/A

N/A

N/A

(1) For the U.S. defined benefit plans, the discount rate assumption was 3.40%, 4.30% and
3.70% for 2020, 2019 and 2018, respectively. For the Canadian defined benefit plans,
the discount rate assumption was 3.10%, 3.70% and 3.50% for 2020, 2019 and 2018,
respectively. For U.S. OPEB plans, the discount rate assumption was 3.00%, 4.20% and
3.50%, for 2020, 2019 and 2018, respectively. For Canadian OPEB plans, the discount
rate assumption was 3.00%, 3.70% and 3.40% for 2020, 2019 and 2018, respectively.
For lump sum distributions (for U.S. qualified salaried and nonqualified plans only), the
discount rate assumption was based on the PPA Phased Table: Interest and mortality
assumptions as mandated by the Pension Protection Act of 2006.

(2) The discount rate used to estimate our net periodic benefit cost for January 2019 was
4.40%. Due to the remeasurement triggered by the 2019 Retiree Annuity Purchase, the
discount rate was updated to 4.30% for the remainder of the year.

(3) Determining our expected return requires a high degree of judgment. We consider actual
pension fund asset performance over multiple years, and current and expected valuation
levels in the global equity and credit markets. Historical fund returns are used as a base and
we place added weight on more recent pension plan asset performance. As discussed in the
“Our Investment Policies and Strategies” section above, fixed income securities continue to
make up a larger portion of our plan assets. As a result, we reduced our assumption of long-
term rate of return on plan assets to 6.00% for the year ending December 31, 2021.
(6) For OPEB plans during 2020, the assumed weighted healthcare cost trend rate was
7.3%, 4.5% and 5.4% for U.S. Pre-Medicare participants, U.S. HRA participants and
Canadian OPEB plans, respectively.

(4) For the U.S. defined benefit plans, the rate of compensation increase assumption for

2020, 2019 and 2018 was between 2.00%—13.00% for salaried and hourly participants
and was decreasing with participant age. For the Canadian defined benefit plans, the rate
of compensation increase assumption for salaried participants was 3.25% for 2020,
2019 and 2018. The rate of compensation increase assumption for hourly participants
was 3.00% for 2020, 2019 and 2018.

(5) U.S. qualified salaried and nonqualified plans only.

Pension Plan Contributions and Benefit Payments

Established funding standards govern the funding requirements
for our qualified and registered pension plans. We fund the
benefit payments of our nonqualified and nonregistered plans
as benefit payments come due. We voluntarily contributed
$300 million to our U.S. qualified pension plans during 2018,
although there was no minimum required contribution for the
year.

During 2020, we made contributions and/or benefit payments
of $16 million for our U.S. nonqualified pension plans,
$3 million for our Canadian nonregistered pension plans and
$2 million for our Canadian registered plans.

During 2021, based on estimated year-end asset values and
projections of plan liabilities, we expect to make contributions
and/or benefit payments of approximately:

•$14 million for our U.S. nonqualified pension plans,
•$3 million for the Canadian non-registered plans and
•$2 million for our Canadian registered plan (required

contribution).

We do not anticipate contributions being required for our U.S. qualified
pension plan for 2021.

OPEB Benefit Payments

During 2020, we contributed $6 million and $2 million to our
U.S. and Canadian OPEB plans, respectively. In 2021, we
expect to make contributions of $8 million in total for our U.S.
and Canadian OPEB plans, including $4 million expected to be
required to cover benefit payments under collectively bargained
contractual obligations.

DOLLAR AMOUNTS IN MILLIONS

2021

2022

2023

2024

2025

2026-2030

PENSION

OPEB

$

$

$

$

$

$

188 $

189 $

193 $

192 $

192 $

978 $

14

12

11

11

10

45

UNION-ADMINISTERED MULTIEMPLOYER BENEFIT PLANS

We contribute to multiemployer defined benefit plans under the
terms of collective-bargaining agreements. These plans cover a
small number of our employees and on an annual basis our
contributions are immaterial.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

73

N/A

N/A

N/A 4.50 –
7.30%

4.50 –
7.80%

4.50 –
7.80%

Estimated Projected Benefit Payments for the Next 10 Years

These plans have different risks than single-employer plans.
Our contributions may be used to fund benefits for employees
of other participating employers. If we choose to stop
participating, we may be required to pay a withdrawal liability
based on the underfunded status of the plan. If another
participating employer stops contributing to the plan, we may
become responsible for remaining plan unfunded obligations.

NOTE 10: ACCRUED LIABILITIES

Accrued liabilities were comprised of the following:

DOLLAR AMOUNTS IN MILLIONS

Our compensating balance requirement for our letters of credit
was $3 million as of December 31, 2020 and December 31,
2019.

NOTE 12: LONG-TERM DEBT, NET

This note provides details about:

•debt issued and extinguished and
•long-term debt and related maturities.
Our long-term debt includes notes, debentures and other
borrowings.

DECEMBER 31,
2020

DECEMBER 31,
2019

DEBT ISSUED AND EXTINGUISHED

$

204

$

26

111

87

75

93

$

596

$

188

33

105

98

24

82

530

Compensation and employee benefit
costs

Current portion of lease liabilities
(Note 17)

Customer rebates, volume discounts
and deferred income

Interest

Taxes payable

Other

Total

NOTE 11: LINE OF CREDIT

OUR LINE OF CREDIT

In January 2020, we refinanced and extended our $1.5 billion
five-year senior unsecured revolving credit facility, which expires
in January 2025. Borrowings are at LIBOR plus a spread or at
other interest rates mutually agreed upon between the borrower
and the lending banks. As of December 31, 2020, we had no
outstanding borrowings on the revolving credit facility and had
our full $1,500 million available. As of December 31, 2019, we
had $230 million of outstanding borrowings on the revolving
credit facility and had an additional $1,270 million available.
We were in compliance with the revolving credit facility
covenants as of December 31, 2020 and December 31, 2019.

LETTERS OF CREDIT AND SURETY BONDS

The amounts of letters of credit and surety bonds we have
entered into as of the end of the last two years are included in
the following table:

DOLLAR AMOUNTS IN MILLIONS

DECEMBER 31,
2020

DECEMBER 31,
2019

$

$

36

130

$

$

35

127

Letters of credit

Surety bonds

74

Over the second half of 2020, the company took action to
reduce our outstanding debt balance. In December 2020, we
redeemed our $500 million 4.625 percent notes due in
September 2023, and in September 2020, we redeemed our
$325 million 3.25 percent notes due in March 2023. Pretax
charges of $58 million and $23 million were included in
“Interest expense, net of capitalized interest” in the
Consolidated Statement of Operations in fourth quarter and
third quarter 2020, respectively, for the make-whole premiums,
unamortized debt issuance costs and unamortized debt
discounts in connection with these early extinguishments.

In March 2020, we issued $750 million of 4.00 percent notes
due in April 2030. The net proceeds after deducting the
discount, underwriting fees and issuance costs were
$732 million. In May 2020, a portion of the net proceeds was
used to redeem our $569 million 4.70 percent notes due
in March 2021. A net pretax charge of $11 million was included
in “Interest expense, net of capitalized interest” in
the Consolidated Statement of Operations in second quarter
2020 for the make-whole premium in connection with the early
extinguishment, partially offset by the write-off of an
unamortized fair value step-up adjustment.

In February 2019, we issued $750 million of 4.00 percent
notes due in November 2029. The net proceeds after deducting
the discount, underwriting fees and issuance costs were
$739 million. In March 2019, a portion of the net proceeds
was used to redeem our $500 million 7.38 percent notes due
in October 2019. A pretax charge of $12 million was included in
“Interest expense, net of capitalized interest” in the
Consolidated Statement of Operations in first quarter 2019 for
the make-whole premium, unamortized debt issuance costs and
unamortized debt discounts in connection with the early
extinguishment.

LONG-TERM DEBT AND RELATED MATURITIES

NOTE 13: FAIR VALUE OF FINANCIAL INSTRUMENTS

The following table lists our long-term debt by types and interest rates
at the end of our last two years and includes the current portion.

FAIR VALUE OF DEBT

Long-Term Debt by Types and Interest Rates (Includes Current
Portion)

DOLLAR AMOUNTS IN MILLIONS

DECEMBER 31,
2020

DECEMBER 31,
2019

The estimated fair values and carrying values of our long-term
debt and line of credit consisted of the following:

DOLLAR AMOUNTS IN MILLIONS

DECEMBER 31, 2020

DECEMBER 31, 2019

CARRYING
VALUE

FAIR VALUE
(LEVEL 2)

CARRYING
VALUE

FAIR VALUE
(LEVEL 2)

9.00% debentures due 2021

$

150 $

4.70% debentures due 2021

7.125% debentures due 2023

5.207% debentures due 2023

4.625% notes due 2023

3.25% debentures due 2023

8.50% debentures due 2025

7.95% debentures due 2025

7.70% debentures due 2026

7.35% debentures due 2026

7.85% debentures due 2026

Variable-rate term loan credit facility
matures 2026

6.95% debentures due 2027

4.00% notes due 2029

4.00% notes due 2030

7.375% debentures due 2032

6.875% debentures due 2033

Other

Total principal long-term debt

Add: fair value adjustments (related to
Plum Creek merger)

Less: unamortized discounts

Less: unamortized debt expense

Total

Portion due within one year

$

$

—

191

860

—

—

300

136

150

62

100

225

300

750

750

1,250

275

1

5,500

12

(28)

(9)

5,475 $

150 $

150

569

191

860

500

325

300

136

150

62

100

225

300

750

—

1,250

275

1

6,144

27

(14)

(10)

6,147

—

Amounts of Long-Term Debt Due Annually for the Next Five
Years and Thereafter

DOLLAR AMOUNTS IN MILLIONS (1)

2021

2022

2023

2024

2025

Thereafter

$

$

$

$

$

$

150

—

1,051

—

436

3,863

(1) Excludes $25 million of unamortized discounts, capitalized debt expense and fair value

adjustments (related to Plum Creek merger).

Long-term debt
(including current
maturities) and line
of credit:

Fixed rate

Variable rate

Total Debt

$

$

5,250 $

6,718 $

5,922 $

6,986

225

225

455

455

5,475 $

6,943 $

6,377 $

7,441

To estimate the fair value of long-term debt we used the market
approach, which is based on quoted market prices we received
for the same types and issues of our debt.

We believe that our variable-rate long-term debt and line of
credit instruments have net carrying values that approximate
their fair values with only insignificant differences.

The inputs to these valuations are based on market data
obtained from independent sources or information derived
principally from observable market data. The difference
between the fair value and the carrying value represents the
theoretical net premium or discount we would pay or receive to
retire all debt at the measurement date.

FAIR VALUE OF OTHER FINANCIAL INSTRUMENTS

We believe that our other financial instruments, including cash
and cash equivalents, short-term investments, mutual fund
investments held in grantor trusts, receivables and payables,
have net carrying values that approximate their fair values with
only insignificant differences. This is primarily due to the short-
term nature of these instruments and the allowance for
doubtful accounts.

NOTE 14: LEGAL PROCEEDINGS, COMMITMENTS AND
CONTINGENCIES

This note provides details about our:

•legal proceedings,
•environmental matters and
•commitments and other contingencies.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

75

LEGAL PROCEEDINGS

We are party to various legal proceedings arising in the ordinary
course of business. We are not currently a party to any legal
proceeding that management believes could have a material
adverse effect on our Consolidated Balance Sheet,
Consolidated Statement of Operations or Consolidated
Statement of Cash Flows.

ENVIRONMENTAL MATTERS

Site Remediation

Under the federal Comprehensive Environmental Response,
Compensation and Liability Act (CERCLA) — commonly known
as the “Superfund” — and similar state laws, we are a party to
various proceedings related to the cleanup of hazardous waste
sites and have been notified that we may be a potentially
responsible party related to the cleanup of other hazardous
waste sites for which proceedings have not yet been initiated.

We have received notification from the Environmental Protection
Agency (the EPA) and have acknowledged that we are a
potentially responsible party in a portion of the Kalamazoo River
Superfund site in southwest Michigan. Our involvement in the
remediation site is based on our former ownership of the
Plainwell, Michigan mill located within the remediation site.
Several other companies also have been deemed potentially
responsible parties as past or present owners or operators of
facilities within the site, or as arrangers under CERCLA.

We cooperated with other parties to jointly implement an
administrative order issued by the EPA on April 14, 2016, with
respect to a portion of the site comprising a stretch of the river
approximately 1.7 miles long referred to as the Otsego
Township Dam Area. During third quarter 2018, implementation
of this administrative order was completed.

In 2010, the company, along with others, was named as a
defendant by Georgia-Pacific Consumer Products LP, Fort James
Corporation and Georgia-Pacific LLC in an action seeking
contribution under CERCLA for remediation costs relating to a
certain area within the site. On March 29, 2018, the U.S.
District Court issued an opinion and order assigning the
company responsibility for 5 percent of approximately
$50 million in past costs incurred by the plaintiffs. The
remaining 95 percent of this pool of past costs incurred was
allocated to the plaintiffs and other defendants.

The opinion and order, which is currently on appeal before the
U.S. Court of Appeals for the Sixth Circuit, does not establish
allocation for future remediation costs, and accordingly, we may
incur additional costs in connection with future remediation
tasks for other areas of the site. In connection with the opinion
and order, we updated our best estimate of the liability

76

associated with the site and recorded a pretax charge of $28
million in first quarter 2018 within “Other operating costs, net”
in the Consolidated Statement of Operations.

We have established accruals for estimated remediation costs
on the active Superfund sites and other sites for which we are
a potentially responsible party. These accruals are recorded in
“Accrued liabilities” and “Other liabilities” on our Consolidated
Balance Sheet.

Changes in the Accrual for Environmental Remediation

DOLLAR AMOUNTS IN MILLIONS

Accrual balance as of December 31, 2019

Charges and adjustments, net

Payments

Accrual balance as of December 31, 2020

We change our accrual to reflect:

$

$

61

4

(8)

57

•new information on any site concerning implementation of

remediation alternatives,

•updates on prior cost estimates and new sites and
•costs incurred to remediate sites.
Estimates. We believe it is reasonably possible, based on
currently available information and analysis, that remediation
costs for all identified sites may exceed our existing accruals by
up to $121 million.

This estimate, in which those additional costs may be incurred
over several years, is the upper end of the range of reasonably
possible additional costs. The estimate:

•is much less certain than the estimates on which our

accruals currently are based and

•uses assumptions that are less favorable to us among the

range of reasonably possible outcomes.

In estimating our current accruals and the possible range of
additional future costs, we:

•assumed we will not bear the entire cost of remediation of

every site,

•took into account the ability of other potentially responsible

parties to participate and

•considered each party’s financial condition and probable

contribution on a per-site basis.

We have not recorded any amounts for potential recoveries
from insurance carriers.

Asset Retirement Obligations

Reconciliation of Our Common Share Activity

SHARES IN THOUSANDS

2020

2019

2018

Outstanding at beginning of year

745,300

746,391

755,223

Stock options exercised

Issued for vested restricted stock
units

Issued for vested performance share
units

Repurchased

1,441

574

70

—

660

480

118

2,026

466

86

(2,349)

(11,410)

Outstanding at end of year

747,385

745,300

746,391

SHARE REPURCHASE PROGRAMS

On February 7, 2019, our board of directors terminated the
2016 Repurchase Program and approved a new share
repurchase program (the 2019 Repurchase Program) under
which we are authorized to repurchase up to $500 million of
outstanding shares.

During 2020, we did not repurchase any shares of common
stock. As of December 31, 2020, we have remaining
authorization of $440 million for future stock repurchases.

During 2019, we repurchased over 2.3 million shares of
common stock for approximately $60 million (including
transaction fees) under the 2019 Repurchase Program. As of
December 31, 2019, we had remaining authorization of
$440 million for future stock repurchases.

During 2018, we repurchased over 11.4 million shares of
common stock for approximately $366 million (including
transaction fees) under the 2016 Repurchase Program. As of
December 31, 2018, we had remaining authorization of
$135 million for future stock repurchases.

All common stock repurchases under the 2016 and 2019
Repurchase Programs were made in open-market transactions.

We record share repurchases upon trade date as opposed to
the settlement date when cash is disbursed. We record a
liability to account for repurchases that have not been cash
settled. There were no unsettled repurchases as of
December 31, 2020, or December 31, 2019.

We have obligations associated with the retirement of tangible
long-lived assets consisting primarily of reforestation
obligations related to forest management licenses in Canada
and obligations to close and cap landfills. Some of our sites
have asbestos containing materials. We have met our current
legal obligation to identify and manage these materials. In
situations where we cannot reasonably determine when
asbestos containing materials might be removed from the
sites, we have not recorded an accrual because the fair value
of the obligation cannot be reasonably estimated. As of
December 31, 2020, and December 31, 2019, we had an
asset retirement obligation of $33 million and $30 million,
respectively. These obligations are recorded in “Accrued
liabilities” and “Other liabilities” on our Consolidated Balance
Sheet.

COMMITMENTS AND OTHER CONTINGENCIES

Product Remediation Contingency

Refer to Note 18: Product Remediation Recoveries, Net for
further information.

NOTE 15: SHAREHOLDERS’ INTEREST

This note provides details about:

•preferred and preference shares,
•common shares,
•share repurchase programs and
•accumulated other comprehensive loss.

PREFERRED AND PREFERENCE SHARES

We had no preferred shares or preference shares outstanding
as of December 31, 2020 or December 31, 2019. We have
authorization to issue 7 million preferred shares with a par
value of $1.00 per share and 40 million preference shares with
a par value of $1.00 per share.

COMMON SHARES

The number of common shares we have outstanding changes
when:

•new shares are issued,
•stock options are exercised,
•restricted stock units or performance share units vest,
•stock equivalent units are paid out,
•shares are tendered,
•shares are repurchased or
•shares are canceled.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

77

ACCUMULATED OTHER COMPREHENSIVE LOSS

Changes in amounts included in our accumulated other
comprehensive loss by component are:

•types of share-based compensation,
•unrecognized share-based compensation and
•deferred compensation stock equivalent units.

DOLLAR AMOUNTS IN MILLIONS

Pension(1)

2020

2019

2018

Balance at beginning of period

$

(1,128) $

(1,343) $

(1,810)

Other comprehensive income
(loss) before reclassifications

Amounts reclassified from
accumulated other comprehensive
income (loss) to earnings(2)(3)

Total other comprehensive
income

Reclassification of certain
effects due to tax law changes(4)

(223)

(216)

287

431

388

325

64

—

215

713

—

(246)

Balance at end of period

(1,064)

(1,128)

(1,343)

Other Post-Employment Benefits(1)

Balance at beginning of period

Other comprehensive income
(loss) before reclassifications

Amounts reclassified from
accumulated other comprehensive
income (loss) to earnings(2)

Total other comprehensive
income

Reclassification of certain tax
effects due to tax law changes(4)

(12)

(3)

3

—

—

(19)

6

1

7

—

(25)

13

—

13

(7)

Balance at end of period

(12)

(12)

(19)

Translation Adjustments and Other

Balance at beginning of period

236

210

Translation adjustments

Total other comprehensive
income (loss)

Reclassification of accumulated
unrealized gains on
available-for-sale securities(5)

18

18

—

26

26

—

273

(54)

(54)

(9)

Balance at end of period

254

236

210

Accumulated other comprehensive
loss, end of period

$

(822) $

(904) $ (1,152)

(1) Amounts are presented net of tax.
(2) Amounts of actuarial loss and prior service (cost) credit are components of net periodic
benefit cost (credit). See Note 9: Pension and Other Post-Employment Benefit Plans.

(3) Amounts include settlement charges totaling $253 million, $455 million and

$200 million related to our pension plans for the years ended December 31, 2020,
December 31, 2019 and December 31, 2018, respectively. See Note 9: Pension and
Other Post-Employment Benefit Plans for further detail.

(4) During 2018, we reclassified certain tax effects from tax law changes of $253 million

from “Accumulated other comprehensive loss” to “Retained earnings” on our
Consolidated Balance Sheet in accordance with ASU 2018-02.

(5) During 2018, we reclassified accumulated unrealized gains on available-for-sale

securities of $9 million from “Accumulated other comprehensive loss” to “Retained
earnings” on our Consolidated Balance Sheet in accordance with ASU 2016-01.

NOTE 16: SHARE-BASED COMPENSATION

This note provides details about:

•our Long-Term Incentive Compensation Plan (2013 Plan),
•how we account for share-based awards,
•tax benefits of share-based awards,

78

Share-based compensation expense was:

•$30 million in 2020,
•$30 million in 2019 and
•$42 million in 2018.

OUR LONG-TERM INCENTIVE COMPENSATION PLAN

Our long-term incentive plan provides for share-based awards
that include:

•restricted stock,
•restricted stock units (RSUs),
•performance shares,
•performance share units (PSUs),
•stock options and
•stock appreciation rights (SARs).
We may issue future grants of up to 20 million shares under
the 2013 Plan. We also have the right to reissue forfeited and
expired grants.

For restricted stock, RSUs, performance shares, PSUs or other
equity grants:

•An individual participant may receive a grant of up to 1 million

shares annually.

•No participant may be granted awards that exceed

$10 million earned in a 12-month period.

For stock options and SARs:

•An individual participant may receive a grant of up to 2 million

shares in any one calendar year.

•The exercise price is required to be the market price on the

date of the grant.

We have not granted any stock options or SARs since 2016
and the remaining liability related to SARs is immaterial at
December 31, 2020.

The Compensation Committee of our board of directors
annually establishes an overall pool of stock awards available
for grants based on performance.

For stock-settled awards we:

•issue new stock into the marketplace and
•generally do not repurchase shares in connection with

issuing new awards.

Our common shares would increase by approximately 27 million
shares if all share-based awards were exercised or vested.
These include:

TYPES OF SHARE-BASED COMPENSATION

Our share-based compensation is in the form of:

•all options, RSUs and PSUs outstanding at December 31,

2020, and

•all remaining options, RSUs and PSUs that could be granted

under the 2013 Plan.

•RSUs,
•PSUs,
•stock options and
•SARs.

HOW WE ACCOUNT FOR SHARE-BASED AWARDS

When accounting for share-based awards we:

•use a fair-value-based measurement and
•recognize the cost of share-based awards in our consolidated

financial statements.

We recognize the cost of share-based awards in the
Consolidated Statement of Operations over the required service
period — generally the period from the date of the grant to the
date when it is fully vested. Special situations include:

•Awards that vest upon retirement — the required service

period ends on the date an employee is eligible for
retirement, including early retirement.

•Awards that continue to vest following job elimination or the
sale of a business — the required service period ends on the
date the employment from the company is terminated.

In these special situations, compensation expense from share-
based awards is recognized over a period that is shorter than
the stated vesting period.

TAX BENEFITS OF SHARE-BASED AWARDS

Our total income tax benefit from share-based awards
recognized in the Consolidated Statement of Operations for the
last three years was:

•$4 million in 2020,
•$4 million in 2019 and
•$5 million in 2018.
Tax benefits from share-based awards are accrued as stock
compensation expense and realized when:

•restricted shares and RSUs vest,
•performance shares and PSUs vest,
•stock options are exercised and
•SARs are exercised.

RESTRICTED STOCK UNITS

Through the 2013 Plan, we award RSUs — grants that entitle
the holder to shares of our stock as the award vests.

The Details

Our RSUs granted in 2020, 2019 and 2018 generally:

•vest ratably over four years;
•immediately vest in the event of death while employed or

disability;

•continue to vest upon retirement at an age of at least 62, but
a portion of the grant is forfeited if retirement occurs before
the one-year anniversary of the grant;

•continue vesting for one year in the event of involuntary
termination when retirement has not been met and

•will be forfeited upon termination of employment in all other

situations including early retirement prior to age 62.

Our Accounting

The fair value of our RSUs is the market price of our stock on
the grant date of the awards.

We generally record share-based compensation expense for
RSUs over the four-year vesting period. Generally, for RSUs that
continue to vest following the termination of employment, we
record the share-based compensation expense over a required
service period that is less than the stated vesting period.

Activity

The following table shows our RSU activity for 2020:

Nonvested at December 31, 2019

Granted

Vested

Forfeited

Nonvested at December 31, 2020(1)

RESTRICTED
STOCK UNITS
(IN THOUSANDS)

WEIGHTED
AVERAGE
GRANT-DATE
FAIR VALUE

1,789 $

776 $

(663) $

(51) $

1,851 $

29.15

30.03

28.73

29.43

29.67

(1) As of December 31, 2020, there were approximately 519 thousand RSUs that had met

the requisite service period and will be released as identified in the grant terms.

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

79

The weighted average grant-date fair value for RSUs was:

•$30.03 in 2020,
•$25.83 in 2019 and
•$34.19 in 2018.
The total grant-date fair value of RSUs vested was:

•$19 million in 2020,
•$18 million in 2019 and
•$16 million in 2018.
Nonvested RSUs accrue dividends that are paid out when RSUs
vest. Any RSUs forfeited will not receive dividends.

is estimated using a Monte Carlo simulation model. This model
estimates the TSR ranking of the company over the
performance period. Compensation expense is based on the
estimated probable number of earned awards and recognized
over the vesting period on an accelerated basis. Generally,
compensation expense would not be reversed if the market
condition is not achieved, provided the requisite service period
has been completed.

Weighted Average Assumptions Used in Estimating the Value
of PSUs

As RSUs vest, a portion of the shares awarded is withheld to
cover employee taxes. As a result, the number of stock units
vested and the number of common shares issued will differ.

Performance
period

Expected
dividends

2020 GRANTS

2019 GRANTS

2018 GRANTS

2/13/2020 –

12/31/2022

1/1/2019 –
12/31/2021

1/1/2018 –
12/31/2020

4.50%

5.25%

3.81%

PERFORMANCE SHARE UNITS

Through the 2013 Plan, we award PSUs — grants that entitle
the holder to shares of our stock as the award vests.

The Details

The final number of shares granted in 2020 will vest between a
range of 0 percent to 150 percent of each grant’s target,
depending upon actual company performance compared against
an industry peer group. For prior year grants, company
performance is measured against an industry peer group and
the S&P 500.

The vesting provisions for PSUs granted in 2020, 2019 and
2018 were as follows:

•vest 100 percent on the third anniversary of the grant date
as long as the individual remains employed by the company;

•fully vest in the event the participant dies or becomes

disabled while employed;

•continue to vest upon retirement at an age of at least 62, but
a portion of the grant is forfeited if retirement occurs before
the one-year anniversary of the grant;

•continue vesting for one year in the event of involuntary

termination when the retirement criteria has not been met
and the employee has met the second anniversary of the
grant date and

•will be forfeited upon termination of employment in all other

situations including early retirement prior to age 62.

In addition, PSUs granted in 2020 will vest at a maximum of
100 percent of target value in the event of negative absolute
company total shareholder return (TSR).

Our Accounting

Since the awards contain a market condition, the effect of the
market condition is reflected in the grant-date fair value which

80

Risk-free rate

1.45% – 1.62%

2.43% – 2.55%

1.75% – 2.34%

Volatility

20.02% – 22.40% 22.50% – 27.40% 17.30% – 21.52%

$

33.16 $

29.66 $

35.49

Weighted
average grant-
date fair value

Activity

The following table shows our PSU activity for 2020:

GRANTS
(IN THOUSANDS)

WEIGHTED
AVERAGE
GRANT-DATE
FAIR VALUE

Nonvested at December 31, 2019

1,049 $

Granted at target

Vested

Forfeited

Performance adjustment

375

(91)

(20)

(215)

Nonvested at December 31, 2020(1)

1,098 $

33.93

33.16

37.93

32.42

37.93

32.58

(1) As of December 31, 2020, there were approximately 379 thousand PSUs that had met

the requisite service period and will be released as identified in the grant terms.

The total grant-date fair value of PSUs vested was:

•$3 million in 2020,
•$3 million in 2019 and
•$4 million in 2018.
As PSUs vest, a portion of the shares awarded is withheld to
cover participant taxes. As a result, the number of stock units
vested and the number of common shares issued will differ.

STOCK OPTIONS

Stock options entitle award recipients to purchase shares of
our common stock at a fixed exercise price. We have not
granted stock option awards since 2016. When granted in prior
years, stock options had an exercise price equal to the market
price of our stock on the date of the grant.

The Details

Our stock options generally:

•vest over four years of continuous service,
•must be exercised within 10 years of the grant date and
•use a Black-Scholes option valuation model to estimate the
fair value of every stock option award on its grant date.

Activity

The following table shows our stock option activity for 2020:

WEIGHTED
AVERAGE
REMAINING
CONTRACTUAL
TERM
(IN YEARS)

WEIGHTED
AVERAGE
EXERCISE
PRICE

AGGREGATE
INTRINSIC
VALUE (IN
MILLIONS)

OPTIONS (IN
THOUSANDS)

officers and

•receive a 15 percent premium if the deferral is for at least

five years.

Our directors:

•receive a portion of their annual retainer fee in the form of
RSUs, which vest over one year and may be deferred into
stock equivalent units;

•may choose to defer some or all of the remainder of their

annual retainer fee into stock equivalent units and

•do not receive a premium for their deferrals.
Employees and directors also choose when the deferrals will be
paid out, although no deferrals may be paid until after the
separation from service of the employee or director.

Outstanding at
December 31,
2019

Exercised

Forfeited or
expired

Outstanding at
December 31,
2020(1)

Exercisable at
December 31,
2020

5,275 $

27.30

(1,441) $

(66) $

23.03

36.49

3,768 $

28.82

3.63 $

3,768 $

28.82

3.63 $

Our Accounting

We settle all deferred compensation accounts in cash for our
employees. Our directors receive shares of common stock as
payment for stock equivalent units. In addition, we credit all
stock equivalent accounts with dividend equivalents. The
number of common shares to be issued in the future to
directors is 682 thousand.

20

20

(1) As of December 31, 2020, there were approximately 147 thousand stock options that

had met the requisite service period and will be released as identified in the grant terms.

The total intrinsic value of stock options exercised was:

•$13 million in 2020,
•$5 million in 2019 and
•$22 million in 2018.

UNRECOGNIZED SHARE-BASED COMPENSATION

As of December 31, 2020, our unrecognized share-based
compensation cost for all types of share-based awards included
$40 million related to non-vested equity-classified share-based
compensation arrangements. These are expected to be
recognized over a weighted average period of approximately 1.1
years.

DEFERRED COMPENSATION STOCK EQUIVALENT UNITS

Certain employees and our board of directors may defer
compensation into stock equivalent units.

The Details

Eligible employees:

•may choose to defer all or part of their bonus into stock

equivalent units;

•may choose to defer part of their salary, except for executive

Stock equivalent units are:

•liability-classified awards and
•remeasured to fair value at every reporting date.
The fair value of a stock equivalent unit is equal to the market
price of our stock.

Activity

The number of stock equivalent units outstanding in our
deferred compensation accounts was:

•767 thousand as of December 31, 2020,
•788 thousand as of December 31, 2019 and
•788 thousand as of December 31, 2018.

NOTE 17: LEASES

We account for leases in accordance with ASC Topic 842,
Leases, which we adopted on January 1, 2019 using the
modified retrospective transition approach at the beginning of
the adoption period through a cumulative-effect adjustment to
retained earnings. This adoption resulted in the recognition of
right-of-use assets (“ROU assets”) of $165 million and lease
liabilities of $172 million, with the difference of $7 million
recorded to “Retained earnings”, on our Consolidated Balance
Sheet on January 1, 2019.

The majority of our operating leases are related to our office
and warehouse space, and the majority of our financing leases

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

81

are related to vehicles and forklifts. Our leases have remaining
lease terms of approximately 1 year to 25 years. Options to
renew, extend or terminate a lease are reflected in our lease
terms when we believe it is reasonably certain we will exercise
that option. When our leases do not provide an implicit or an
explicit interest rate, we use our incremental borrowing rate in
determining the present value of lease payments.

Lease Expense

DOLLAR AMOUNTS IN MILLIONS

Operating lease costs

Financing lease costs

Total lease costs

2020

2019

21 $

12

33 $

20

15

35

$

$

Supplemental Cash Flow Information

DOLLAR AMOUNTS IN MILLIONS

Cash paid for amounts included in the
measurement of lease liabilities:

Operating cash flows for operating leases

Financing cash flows for financing
leases(1)

ROU assets obtained in exchange for new
(modified) lease liabilities:

Operating leases

Financing leases

$

$

$

$

2020

2019

20 $

13 $

3 $

4 $

20

16

6

5

(1) Interest expense related to financing leases was immaterial during

2020 and 2019.

Supplemental Balance Sheet Information Related to Leases

DOLLAR AMOUNTS IN MILLIONS

DECEMBER 31,
2020

DECEMBER 31,
2019

BALANCE SHEET
CLASSIFICATION

Other assets

Property and
equipment, net

$

$

106 $

19

125 $

Accrued liabilities

$

16 $

Accrued liabilities

Other liabilities

Other liabilities

10

95

12

$

133 $

LEASES

Assets

Operating lease
ROU assets

Financing lease
ROU assets

Total leased
assets

Liabilities

Current:

Operating lease
liabilities

Financing lease
liabilities

Noncurrent:

Operating lease
liabilities

Financing lease
liabilities

Total lease
liabilities

82

120

28

148

20

13

103

20

156

Weighted Average Remaining Lease Term

Operating leases

Financing leases

Weighted Average Discount Rate

DECEMBER 31,
2020

DECEMBER 31,
2019

10 years

2 years

11 years

3 years

Operating leases

Financing leases

DECEMBER 31,
2020

DECEMBER 31,
2019

4.2%

3.1%

4.2%

3.1%

Maturities of Lease Liabilities as of December 31, 2020

DOLLAR AMOUNTS IN MILLIONS

OPERATING
LEASES

FINANCING
LEASES

2021

2022

2023

2024

2025

Thereafter

Total lease payments

Less: interest

$

19 $

18

17

12

11

59

136

(25)

Total present value of lease liabilities

$

111 $

11

7

4

1

—

—

23

(1)

22

NOTE 18: PRODUCT REMEDIATION RECOVERIES, NET

In July 2017, we announced we were implementing a solution to
address concerns regarding our TJI® Joists coated with our
former Flak Jacket® Protection product. This issue was isolated
to Flak Jacket product manufactured after December 1, 2016 and
did not affect any of our other products.

During the years ended December 31, 2020 and 2019, we
received and recorded insurance recoveries of $8 million and
$68 million, respectively, related to our remediation efforts. In
addition, we recorded insurance recoveries of $25 million and
product remediation charges of $25 million during the year ended
December 31, 2018. The charges and recoveries recorded are
attributable to our Wood Products segment and were recorded in
“Product remediation recoveries, net” in the Consolidated
Statement of Operations.

NOTE 19: OTHER OPERATING COSTS, NET

Other operating costs, net:
•includes both recurring and non-recurring income and

expense items and

•can fluctuate from year to year.

Income and Expense Items Included in Other Operating Costs,
Net

DOLLAR AMOUNTS IN MILLIONS

2020

2019

2018

Environmental remediation insurance
recoveries

$

— $

— $

Foreign exchange losses (gains),
net (1)

Gain on disposition of nonstrategic
assets

Litigation expense, net

Research and development expenses

Timber casualty loss

Other, net(2)

7

(4)

11

5

80

35

2

(4)

63

6

—

28

Total other operating costs, net

$

134 $

95 $

(5)

(3)

(5)

35

8

—

52

82

NOTE 20: INCOME TAXES

This note provides details about income taxes applicable to our
operations, including the following:

•earnings (loss) before income taxes,
•provision (benefit) for income taxes,
•effective income tax rate,
•deferred tax assets and liabilities,
•unrecognized tax benefits and
•resolution of IRS tax matter.
The “Income Taxes” section of Note 1: Summary of Significant
Accounting Policies provides details about how we account for
our income taxes.

(1) Foreign exchange gains and losses result from changes in exchange rates primarily
related to our U.S. dollar denominated cash and debt balances that are held by our
Canadian subsidiary.

(2) Other, net includes environmental remediation charges. See Note 14: Legal Proceedings,

Commitments and Contingencies for more information.

EARNINGS (LOSS) BEFORE INCOME TAXES

Domestic and Foreign Earnings (Loss) Before Income Taxes

TIMBER CASUALTY LOSS

In September 2020, forest fires in the state of Oregon,
commonly referred to as the Holiday Farm, Beachie Creek,
Riverside, and Archie Creek fires, spread from adjacent lands
onto portions of our Oregon timberland properties. Based on
interpretation of satellite imagery and aerial photography, as
well as limited on-site assessments, we estimate that the fires
affected approximately 125,000 acres of our Oregon
timberlands. Our assessments have indicated that the extent of
damage varies from tract to tract based on topographical
conditions, rate of fire spread, age of the timber and other
circumstances. Based on these assessments, we expect that
the majority of merchantable timber, even if affected by the
fires, is likely salvageable if harvested within a reasonable
period of time. We believe the majority of pre-merchantable
timber affected by the fires will not be able to be salvaged.

We recorded a timber casualty loss of $80 million in third
quarter 2020 which represented the estimated book value of
timber and related assets that could not be salvaged based on
the information available at that time. Since that time, we have
performed on-site assessments for a limited portion of our
affected timberlands and have also developed revised harvest
plans to incorporate salvage activity. The additional information
obtained has not resulted in a change to the estimated loss
previously recorded. The loss is attributable to our Timberlands
segment and is recorded within “Other operating costs, net” in
the Consolidated Statement of Operations. As salvage efforts
continue and as we are able to complete additional on-site
assessments of timber within the fire perimeter, it is
reasonably possible that this estimate could increase by as
much as $30 million to $40 million.

DOLLAR AMOUNTS IN MILLIONS

Domestic earnings (loss)

Foreign earnings

Total earnings (loss) before income
taxes

2020

2019

2018

$

$

723 $

(268) $

259

55

982 $

(213) $

556

251

807

PROVISION (BENEFIT) FOR INCOME TAXES

DOLLAR AMOUNTS IN MILLIONS

Current:

Federal

State

Foreign

Total current

Deferred:

Federal

State

Foreign

Total deferred

2020

2019

2018

$

147

$

21

$

(69)

30

64

241

1

10

32

(66)

(137)

(1)

11

(31)

(1)

(56)

(169)

(5)

61

(13)

45

12

15

72

59

Total income tax provision (benefit)

$

185

$ (137) $

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

83

EFFECTIVE INCOME TAX RATE

Items Included in Our Deferred Income Tax Assets (Liabilities)

DOLLAR AMOUNTS IN MILLIONS

DOLLAR AMOUNTS IN MILLIONS

U.S. federal statutory income tax

$

207

$

(45) $

170

2020

2019

2018

State income taxes, net of federal tax benefit

REIT income not subject to federal income
tax

SDT settlement(1)

Voluntary pension contribution(2)

Return to provision adjustment

Foreign taxes

Other, net

23

(51)

—

—

(3)

11

(2)

(31)

(68)

8

(116)

Deferred tax assets:

Pension and post-employment
benefits

—

—

4

(2)

5

21

(41)

(1)

15

3

59

State tax credits

Depletion

Excess interest

Incentive compensation

Workers compensation

Total income tax provision (benefit)

$

185

$ (137) $

Effective income tax rate

18.8%

64.1%

7.3%

Net operating loss carryforwards

DECEMBER 31,
2020

DECEMBER 31,
2019

207 $

159

48

14

—

19

18

16

107

429

(66)

363

(239)

—

(28)

(267)

53

34

55

17

18

28

101

465

(64)

401

(224)

(74)

(37)

(335)

66

Other

Gross deferred tax assets

Valuation allowance

Net deferred tax assets

Deferred tax liabilities:

Property, plant and equipment

Timber installment notes

Other

Net deferred tax liabilities

Net deferred tax asset

$

96 $

Net Operating Loss and Credit Carryforwards

Our gross federal, state and foreign net operating loss
carryforwards as of December 31, 2020 totaled $513 million
as follows:

•Federal - U.S. REIT - $208 million, which expire from 2035

through 2039;

•State - $305 million, which will begin to expire in 2027; and
•Foreign - none currently recorded.

Our gross state credit carryforwards as of December 31, 2020
totaled $61 million, which includes $10 million that expire from
2021 through 2034 and $51 million that do not expire. Our
U.S. TRSs have $7 million in foreign tax credit carryforwards
that expire from 2027 through 2029 .

Valuation Allowances

With the exception of the valuation allowance discussed below,
we believe it is more likely than not that we will have sufficient
future taxable income to realize our deferred tax assets.

Our valuation allowance on our deferred tax assets was
$66 million as of December 31, 2020, which related to state
credits, state net operating losses and passive foreign tax
credits.

(1) In fourth quarter 2018, we recorded tax expense of $21 million related to the

settlement of a dispute with the IRS. Refer to “Resolution of IRS Matter” below for
further information.

(2) At the end of 2017, we revalued our deferred tax assets and liabilities to the 21 percent
federal tax rate prescribed by H.R. 1 (the Tax Act). During 2018, we made a voluntary
contribution of $300 million to our U.S. qualified pension plan. We deducted this
contribution on our 2017 U.S. federal tax return at the 2017 federal tax rate of
35 percent. This resulted in an incremental $41 million tax benefit for the portion
attributable to our TRSs. Refer to Note 9: Pension and Other Post-Employment Benefit
Plans for further information on the voluntary contribution.

DEFERRED TAX ASSETS AND LIABILITIES

Deferred tax assets and liabilities reflect the future tax effect
created by differences between the timing of when income or
deductions are recognized for pretax financial book reporting
purposes versus income tax purposes. Deferred tax assets
represent a future tax benefit (or reduction to income taxes in a
future period), while deferred tax liabilities represent a future
tax obligation (or increase to income taxes in a future period).

Balance Sheet Classification of Deferred Income Tax Assets
(Liabilities)

DOLLAR AMOUNTS IN MILLIONS

DECEMBER 31,
2020

DECEMBER 31,
2019

Net noncurrent deferred tax asset

Net noncurrent deferred tax liability

Net deferred tax asset

$

$

120 $

(24)

96 $

72

(6)

66

84

Reinvestment of Undistributed Earnings

Starting in 2018, we revised our indefinite reinvestment
assertion regarding the earnings of our Canadian subsidiary to
permanently reinvest approximately 10 percent of its earnings.
Our change in assertion was based on the company’s review of
global cash management and planned capital deployment,
taking into consideration the effects of the Tax Act. We have no
other foreign subsidiaries with undistributed earnings.
Accordingly, deferred taxes have been provided primarily related
to Canadian withholding taxes associated with Canadian
earnings no longer considered permanently reinvested.

On February 8, 2019, we entered into a closing agreement with
the IRS to settle this dispute. Under the terms of the
agreement, the company paid approximately $21 million of
corporate tax. This amount was recorded as tax expense in
fourth quarter 2018. No interest or penalties were assessed.
The parties filed a stipulated decision with the U.S. Tax Court,
pursuant to which the Court officially closed the matter.

NOTE 21: GEOGRAPHIC AREAS

This note provides selected key financial data according to the
geographical locations of our customers.

UNRECOGNIZED TAX BENEFITS

SALES

Unrecognized tax benefits represent potential future obligations
to taxing authorities if uncertain tax positions we have taken on
previously filed tax returns are not sustained. In accordance
with our accounting policy, we accrue interest and penalties
related to unrecognized tax benefits as a component of income
tax expense (see Note 1: Summary of Significant Accounting
Policies). The total gross amount of unrecognized tax benefits
as of December 31, 2020 and 2019, as well as the activity
during those years, were immaterial.

As of December 31, 2020, our 2016 and 2017 U.S. federal
income tax returns are under examination, with tax years 2016
forward open to examination. We are undergoing examinations
in foreign jurisdictions for tax years 2016 through 2018, with
tax years 2013 forward open to examination. We are also
undergoing examinations in state jurisdictions for tax years
2016 through 2018, with tax years 2009 forward open to
examination. We do not expect that the outcome of any
examination will have a material effect on our consolidated
financial statements; however, audit outcomes and the timing
of audit settlements are subject to significant uncertainty.

RESOLUTION OF IRS MATTER

In connection with the merger with Plum Creek, we acquired
equity interests in Southern Diversified Timber, LLC (SDT), a
timberland joint venture (Timberland Venture) with an affiliate of
Campbell Global LLC (TCG Member). On August 31, 2016, the
Timberland Venture redeemed TCG Member’s interest and
became a fully consolidated, wholly-owned subsidiary of
Weyerhaeuser.

We received a Notice of Final Partnership Administrative
Adjustment (FPAA) dated July 20, 2016, from the Internal
Revenue Service (IRS) in regard to Plum Creek’s 2008 U.S.
federal income tax treatment of the transaction forming the
Timberland Venture. The IRS asserted that the transfer of the
timberlands to the Timberland Venture was a taxable
transaction to Plum Creek at the time of the transfer rather
than a nontaxable capital contribution. We subsequently filed a
petition in the U.S. Tax Court to contest this adjustment.

Our sales to unaffiliated customers outside the U.S. are
primarily to customers in Canada, Japan and China. Our export
sales are comprised primarily of logs, lumber and wood chips to
Japan, Canada and China.

Sales by Geographic Area

DOLLAR AMOUNTS IN MILLIONS

Sales to unaffiliated customers:

U.S.

Canada

Japan

China

Other foreign countries

2020

2019

2018

$ 6,549 $ 5,674 $ 6,365

528

326

83

46

440

305

90

45

519

410

120

62

Total

$ 7,532 $ 6,554 $ 7,476

Export sales from the U.S.:

Japan

Canada

China

Other foreign countries

$

292 $

265 $

109

79

35

94

85

35

Total

$

515 $

479 $

338

107

113

46

604

LONG-LIVED ASSETS

Our long-lived assets used in the generation of revenues in
different geographical areas are nearly all in the U.S. and
Canada. Our long-lived assets primarily include:
•property and equipment, including construction in progress,
•timber and timberlands and
•minerals and mineral rights.

Long-Lived Assets by Geographic Area

DOLLAR AMOUNTS IN MILLIONS

U.S.

Canada

Total

DECEMBER 31,
2020

DECEMBER 31,
2019

$

$

13,922 $

14,074

299

275

14,221 $

14,349

WEYERHAEUSER COMPANY > 2020 ANNUAL REPORT AND FORM 10-K

85

CONTROLS AND PROCEDURES

CHANGES IN INTERNAL CONTROL

EVALUATION OF DISCLOSURE CONTROLS AND
PROCEDURES

The company’s principal executive officer and principal financial
officer have evaluated the effectiveness of the company’s
disclosure controls and procedures as of the end of the period
covered by this annual report on Form 10-K. Disclosure controls
are controls and other procedures that are designed to ensure
that information required to be disclosed in the reports filed or
submitted under the Securities Exchange Act of 1934, as
amended (Act), is recorded, processed, summarized and
reported within the time periods specified in the Securities and
Exchange Commission’s (SEC) rules and forms. Disclosure
controls and procedures include, without limitation, controls
and procedures designed to ensure that information required to
be disclosed by an issuer in the reports that it files or submits
under the Act is accumulated and communicated to the
company’s management, including its principal executive and
principal financial officers, to allow timely decisions regarding
required disclosure.

Based on their evaluation, the company’s principal executive
officer and principal financial officer have concluded that the
company’s disclosure controls and procedures are effective to
ensure that information required to be disclosed complies with
the SEC’s rules and forms.

No changes occurred in the company’s internal control over
financial reporting during the period that have materially
affected, or are reasonably likely to materially affect, the
company’s internal control over financial reporting.

MANAGEMENT’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining
adequate internal control over financial reporting as is defined
in the Securities Exchange Act of 1934 rules. Management,
under our supervision, conducted an evaluation of the
effectiveness of the company’s internal control over financial
reporting based on the framework in Internal Control —
Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
Based on our evaluation under the framework in Internal
Control — Integrated Framework (2013), management
concluded that the company’s internal control over financial
reporting was effective as of December 31, 2020. The
effectiveness of the company’s internal control over financial
reporting as of December 31, 2020, has been audited by
KPMG LLP, an independent registered public accounting firm,
as stated in their report, which is included herein.

86

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Directors
Weyerhaeuser Company:

Opinion on Internal Control Over Financial Reporting

We have audited Weyerhaeuser Company and subsidiaries’ (the Company) internal control over financial reporting as of
December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects,
effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control –
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the consolidated balance sheets of the Company as of December 31, 2020 and 2019, the related consolidated
statements of operations, comprehensive income, cash flows, and changes in equity for each of the years in the three-year period
ended December 31, 2020, and the related notes (collectively, the consolidated financial statements), and our report dated
February 19, 2021 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report
on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over
financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all
material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over
financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that
(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions
of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit
preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Seattle, Washington
February 19, 2021

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

87

DIRECTORS, EXECUTIVE
OFFICERS AND CORPORATE
GOVERNANCE
A list of our executive officers and their biographical information
can be found in Part I of this report in the Our Business —
Information About Our Executive Officers section. Information
with respect to directors of the company and certain other
corporate governance matters, as required by this item to Form
10-K, is set forth in the Notice of the 2021 Annual Meeting and
Proxy Statement for the company’s Annual Meeting of
Shareholders to be held May 14, 2021 under the following
headings: “Item 1. Election of Directors,” “Corporate
Governance at Weyerhaeuser,” and “Stock Information,” and in
each case such required information is incorporated herein by
reference.

The Weyerhaeuser Code of Ethics applies to our chief executive
officer, our chief financial officer and our chief accounting
officer, as well as other officers, directors and employees of the
company. The Weyerhaeuser Code of Ethics is posted on our
website at www.weyerhaeuser.com, and currently is located
under the tabs “Sustainability”, then “Strong Governance”,
then “Ethics & Transparency” and finally “Code of Ethics”.

EXECUTIVE AND DIRECTOR
COMPENSATION
Information with respect to executive and director
compensation, as required by this item to Form 10-K, is set
forth in the Notice of the 2021 Annual Meeting and Proxy
Statement for the company’s Annual Meeting of Shareholders
to be held May 14, 2021 under the headings “Item 1. Election
of Directors” and “Executive Compensation,” and in each case,
such required information is incorporated herein by reference.

SECURITY OWNERSHIP OF
CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS
Information with respect to security ownership of certain
beneficial owners and management and with respect to
securities authorized for issuance under our equity
compensation plans, as required by this item to Form 10-K, is
set forth in the Notice of the 2021 Annual Meeting and Proxy
Statement for the company’s Annual Meeting of Shareholders
to be held May 14, 2021 under the heading “Stock
Information,” and such required information is incorporated
herein by reference.

CERTAIN RELATIONSHIPS AND
RELATED TRANSACTIONS AND
DIRECTOR INDEPENDENCE
Information about certain relationships and related transactions
and director independence, as required by this item to Form
10-K, is set forth in the Notice of the 2021 Annual Meeting and
Proxy Statement for the company’s Annual Meeting of
Shareholders to be held May 14, 2021 under the heading
“Corporate Governance at Weyerhaeuser,” and such required
information is incorporated herein by reference.

PRINCIPAL ACCOUNTING FEES
AND SERVICES
Information with respect to principal accounting fees and
services, as required by this item to Form 10-K, is set forth in
the Notice of the 2021 Annual Meeting and Proxy Statement for
the company’s Annual Meeting of Shareholders to be held
May 14, 2021 under the heading “Item 3. Ratify Selection of
Independent Registered Public Accounting Firm” and such
required information is incorporated herein by reference.

88

EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
All 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, in Financial Statements and Supplementary Data above.

The agreements included as exhibits to this annual report are included to provide information about their terms and not to provide
any other factual or disclosure information about the company or the other parties to the agreements. The agreements may
contain representations and warranties by each party to the applicable agreement that were made solely for the benefit of the
other party to the agreement and should not be treated as categorical statements of fact, but rather as a way of allocating the
risk among the parties if those statements prove to be inaccurate. These representations and warranties may have been qualified
by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which
disclosures are not necessarily reflected in the agreement, may apply standards of materiality in a way that is different from what
may be viewed as material to investors, were made only as of the date of the applicable agreement or such other date or dates
as may be specified in the agreement, and are subject to more recent developments. Accordingly, these representations and
warranties may not describe the actual state of affairs as of the date they were made or at any other time.

EXHIBITS

2

3

4

—

Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession

(a)

Agreement and Plan of Merger, dated as of November 6, 2015, between Weyerhaeuser Company and Plum Creek Timber Company, Inc.
(incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K filed on November 9, 2015 – Commission File Number 1-4825)

—

Articles of Incorporation

(a)

(b)

Articles of Incorporation (incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q filed on May 6, 2011 – Commission
File Number 1-4825, and to Exhibit 3.1 to the Current Report on Form 8-K filed on June 20, 2013 – Commission File Number 1-4825)
Bylaws (incorporated by reference to Exhibit 3.1 to the Quarterly Report on Form 10-Q filed on October 26, 2018 – Commission File
Number 1-4825)

—

Instruments Defining the Rights of Security Holders, Including Indentures

(a)

(b)

(c)

(d)

(e)

(f)

(g)

(h)

(i)

(j)

Indenture dated as of April 1, 1986 between Weyerhaeuser Company and The Bank of New York Mellon Trust Company, N.A. (as successor
to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank and Chemical Bank), a national banking association, as Trustee
(incorporated by reference from the Registration Statement on Form S-3, Registration No. 333-36753)
First Supplemental Indenture dated as of February 15, 1991 between Weyerhaeuser Company and The Bank of New York Mellon Trust
Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank and Chemical Bank), a national
banking association, as Trustee (incorporated by reference from the Registration Statement on Form S-3, Registration No. 333-52982)**
Second Supplemental Indenture dated as of February 1, 1993 between Weyerhaeuser Company and The Bank of New York Mellon Trust
Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank and Chemical Bank), a national
banking association, as Trustee (incorporated by reference from the Registration Statement on Form S-3, Registration No. 333-59974)**
Third Supplemental Indenture dated as of October 22, 2001 between Weyerhaeuser Company and The Bank of New York Mellon Trust
Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank and Chemical Bank), a national
banking association, as Trustee (incorporated by reference to Exhibit 4(d) to the Registration Statement on Form S-3, Registration
No. 333-72356)
Fourth Supplemental Indenture dated as of March 12, 2002 between Weyerhaeuser Company and The Bank of New York Mellon Trust
Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank and Chemical Bank), a national
banking association, as Trustee (incorporated by reference to Exhibit 4.8 from the Registration Statement on Form S-4/A, Registration
No. 333-82376)
Fifth Supplemental Indenture dated as of March 30, 2020 between Weyerhaeuser Company and The Bank of New York Mellon Trust
Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank and Chemical Bank), a national
banking association, as Trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on March 30, 2020 -
Commission File Number 1-4825)
Indenture dated as of March 15, 1983 between Weyerhaeuser Company (as successor to Willamette Industries, Inc.) and The Bank of New
York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank), as Trustee
(incorporated by reference to Exhibit 4(f) to the Annual Report on Form 10-K for the annual period ended December 31, 2017 – Commission
File Number 1-4825)
Indenture dated as of January 30, 1993 between Weyerhaeuser Company (as successor to Willamette Industries, Inc.) and The Bank of New
York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase Manhattan Bank), as Trustee
(incorporated by reference to Exhibit 4(g) to the Annual Report on Form 10-K for the annual period ended December 31, 2017 – Commission
File Number 1-4825)
First Supplemental Trust Indenture dated as of March 12, 2002 between Weyerhaeuser Company (as successor to Willamette Industries,
Inc.) and The Bank of New York Mellon Trust Company, N.A. (as successor to JPMorgan Chase Bank, formerly known as The Chase
Manhattan Bank), as Trustee (incorporated by reference to Exhibit 4(h) to the Annual Report on Form 10-K for the annual period ended
December 31, 2017 – Commission File Number 1-4825)
Indenture dated as of January 15, 1996 between Weyerhaeuser Company Limited (as successor to MacMillan Bloedel Limited) and The
Bank of New York Mellon Trust Company, N.A. (as successor to Harris Trust Company of New York, formerly known as Bank of Montreal
Trust Company), as Trustee (incorporated by reference to Exhibit 4(i) to the Annual Report on Form 10-K for the annual period ended
December 31, 2017 – Commission File Number 1-4825)

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

89

(k)

(l)

First Supplemental Indenture dated as of November 1, 1999 between Weyerhaeuser Company Limited and The Bank of New York Mellon
Trust Company, N.A. (as successor to Harris Trust Company of New York, formerly Bank of Montreal Trust Company), as Trustee
(incorporated by reference to Exhibit 4(j) to the Annual Report on Form 10-K for the annual period ended December 31, 2017 – Commission
File Number 1-4825)
Note Indenture dated November 14, 2005 by and among Plum Creek Timberlands, L.P., as Issuer, Weyerhaeuser Company, as successor to
Plum Creek Timber Company, Inc., as Guarantor, and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.2 to
the Current Report on Form 8-K filed on February 19, 2016 – Commission File Number 1-4825)

(m) Supplemental Indenture No. 1 dated as of February 19, 2016 by and among Plum Creek Timberlands, L.P., as Issuer, Weyerhaeuser

Company, as Guarantor, and U.S. Bank National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Current Report on
Form 8-K filed on February 19, 2016 – Commission File Number 1-4825)
Supplemental Indenture No. 2 dated September 28, 2016 by and between Weyerhaeuser Company, as successor Issuer, and U.S. Bank
National Association, as Trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K filed on September 30, 2016 –
Commission File Number 1-4825)
Officer’s Certificate dated November 15, 2010 executed by Plum Creek Timberlands, L.P., as Issuer (incorporated by reference to Exhibit 4.3
to the Current Report on Form 8-K filed on February 19, 2016 – Commission File Number 1-4825)
Officer’s Certificate dated November 26, 2012 executed by Plum Creek Timberlands, L.P., as Issuer (incorporated by reference to Exhibit 4.4
to the Current Report on Form 8-K filed on February 19, 2016 – Commission File Number 1-4825)
Assumption and Amendment Agreement and Installment Note dated as of April 28, 2016 by and among Plum Creek Timberlands, L.P.,
Weyerhaeuser Company and MeadWestvaco Timber Note Holding Company II, L.L.C. (incorporated by reference to Exhibit 4.1 to the Current
Report on Form 8-K filed on May 4, 2016 – Commission File Number 1-4825)
Officer’s Certificate dated February 25, 2019 executed by Weyerhaeuser Company, as Issuer (incorporated by reference to Exhibit 4.1 to the
Current Report on Form 8-K filed on February 25, 2019 – Commission File Number 1-4825)
Officer’s Certificate dated March 30, 2020 executed by Weyerhaeuser Company, as Issuer (incorporated by reference to Exhibit 4.2 to the
Current Report on Form 8-K filed on March 30, 2020 – Commission File Number 1-4825)
Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934 (incorporated by reference to Exhibit 4(r)
to the Annual Report on Form 10-K for the annual period ended December 31, 2019 – Commission File Number 1-4825)

(n)

(o)

(p)

(q)

(r)

(s)

(t)

10

—

Material Contracts

(a)

Form of Weyerhaeuser Executive Change in Control Agreement, as in effect as of February 14, 2020 (incorporated by reference to
Exhibit 10(a) to the Annual Report on Form 10-K for the annual period ended December 31, 2019 – Commission File Number 1-4825)*
(b) Weyerhaeuser CEO Change in Control Agreement, as in effect as of February 14, 2020 (incorporated by reference to Exhibit 10(b) to the

(c)

Annual Report on Form 10-K for the annual period ended December 31, 2019 – Commission File Number 1-4825)*
Form of Weyerhaeuser Executive Severance Agreement, as in effect as of February 14, 2020 (incorporated by reference to Exhibit 10(c) to
the Annual Report on Form 10-K for the annual period ended December 31, 2019 – Commission File Number 1-4825)*

(d) Weyerhaeuser CEO Severance Agreement, as in effect as of February 14, 2020 (incorporated by reference to Exhibit 10(d) to the Annual

(e)

Report on Form 10-K for the annual period ended December 31, 2019 – Commission File Number 1-4825)*
Restricted Stock Unit Agreement with Adrian M. Blocker dated August 24, 2018 (incorporated by reference to Exhibit 10.3 to the Quarterly
Report on Form 10—Q filed on October 26, 2018 – Commission File Number 1-4825)*

(f) Weyerhaeuser Company 2013 Long-Term Incentive Plan (Amended and Restated Effective August 14, 2020) (incorporated by reference to

(g)

(h)

(i)

(j)

(k)

(l)

(m)

Exhibit 10.2 to the Quarterly Report on Form 10-Q filed on October 30, 2020 – Commission File Number 1-4825)*
Form of Weyerhaeuser Company 2013 Long-Term Incentive Plan Stock Option Award Terms and Conditions (incorporated by reference to
Exhibit 10.2 to the Current Report on Form 8-K filed on April 16, 2013 – Commission File Number 1-4825)*
Form of Weyerhaeuser Company 2013 Long Term Incentive Plan Performance Share Unit Award Terms and Conditions for Plan Years 2018
and 2019 (incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on January 26, 2017 – Commission File Number
1-4825)*
Form of Weyerhaeuser Company 2013 Long Term Incentive Plan Performance Share Unit Award Terms and Conditions for Plan Year 2020
(incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on January 24, 2020 – Commission File Number 1-4825)*
Form of Weyerhaeuser Company 2013 Long Term Incentive Plan Performance Share Unit Award Terms and Conditions for Plan Year 2021
(incorporated by reference to Exhibit 10.1 to the Current Report on Form 8-K filed on January 26, 2021 – Commission File Number 1-4825)*
Form of Weyerhaeuser Company 2013 Long-Term Incentive Plan Restricted Stock Unit Award Terms and Conditions for Plan Years 2017,
2018, 2019 and 2020 (incorporated by reference to Exhibit 10(i) to the Annual Report on Form 10-K for the annual period ended
December 31, 2017 – Commission File Number 1-4825)*
Form of Weyerhaeuser Company 2013 Long-Term Incentive Plan Restricted Stock Unit Award Terms and Conditions for Plan Year 2021
(incorporated by reference to Exhibit 10.2 to the Current Report on Form 8-K filed on January 26, 2021 – Commission File Number 1-4825)*
Form of Weyerhaeuser Company 2004 Long-Term Incentive Plan Stock Option Award Terms and Conditions (incorporated by reference to
Exhibit 10.1 to the Current Report on Form 8-K filed on February 11, 2013 – Commission File Number 1-4825)*

(n) Weyerhaeuser Company 2004 Long-Term Incentive Compensation Plan, as Amended and Restated (incorporated by reference to Exhibit 10.5

(o)

(p)

(q)

(r)

(s)

(t)

(u)

to the Current Report on Form 8-K filed on December 29, 2010 – Commission File Number 1-4825)*
Form of Plum Creek Executive Stock Option, Restricted Stock Unit and Value Management Award Agreement For Plan Year 2010
(incorporated by reference to Exhibit 10(v) to the Annual Report on Form 10-K for the annual period ended December 31, 2016 –
Commission File Number 1-4825)*
Form of Plum Creek Executive Stock Option, Restricted Stock Unit and Value Management Award Agreement For Plan Year 2011
(incorporated by reference to Exhibit 10(w) to the Annual Report on Form 10-K for the annual period ended December 31, 2016 -–
Commission File Number 1-4825)*
2012 Plum Creek Timber Company, Inc. Stock Incentive Plan (incorporated by reference to Exhibit 99.1 from the Registration Statement on
Form S-8, Registration No. 333-209617)*
Amended and Restated Plum Creek Timber Company, Inc. Stock Incentive Plan (incorporated by reference to Exhibit 99.2 from the
Registration Statement on Form S-8, Registration No. 333-209617)*
Plum Creek Supplemental Pension Plan (incorporated by reference to Exhibit 10(dd) to the Annual Report on Form 10-K for the annual period
ended December 31, 2016 – Commission File Number 1-4825)*
Plum Creek Pension Plan (incorporated by reference to Exhibit 10(ee) to the Annual Report on Form 10-K for the period ended December 31,
2016 – Commission File Number 1-4825)*
Plum Creek Supplemental Benefits Plan (incorporated by reference to Exhibit 10(ff) to the Annual Report on Form 10-K for the annual period
ended December 31, 2016 – Commission File Number 1-4825)*

90

(v) Weyerhaeuser Company Amended and Restated Annual Incentive Plan for Salaried Employees (as amended effective February 14, 2020)

(incorporated by reference to Exhibit 10(u) to the Annual Report on Form 10-K for the annual period ended December 31, 2019 –
Commission File Number 1-4825)*

(w) Weyerhaeuser Company 2015 Deferred Compensation Plan (incorporated by reference to Exhibit 10.3 to the Current Report on Form 8-K

filed on December 22, 2014 – Commission File Number 1-4825)*

(x) Weyerhaeuser Company Salaried Employees Supplemental Retirement Plan (incorporated by reference to Exhibit 10(p) to the Annual Report

(z)

(y)

on Form 10-K for the annual period ended December 31, 2004 – Commission File Number 1-4825)*
2011 Fee Deferral Plan for Directors of Weyerhaeuser Company (Amended and Restated Effective January 1, 2016) (incorporated by
reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q filed on May 6, 2016 – Commission File Number 1-4825)*
2011 Fee Deferral Plan for Directors of Weyerhaeuser Company (Amended and Restated Effective August 14, 2020) (incorporated by
reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q filed on October 30, 2020 – Commission File Number 1-4825)*
(aa) Form of Weyerhaeuser Company 2013 Long-Term Incentive Plan Director Restricted Stock Unit Award Terms and Conditions through
May 2020 Plan Year (incorporated by reference to Exhibit 10(z) to the Annual Report on Form 10-K for the annual period ended
December 31, 2017 – Commission File Number 1-4825)*

(bb) Form of Weyerhaeuser Company 2013 Long-Term Incentive Plan Director Restricted Stock Unit Award Terms and Conditions for Plan Years

beginning November 12, 2020 (incorporated by reference to Exhibit 99.2 to the Current Report on Form 8-K filed on November –
Commission File Number 1-4825)*

(cc) Revolving Credit Facility Agreement dated as of January 29, 2020, among Weyerhaeuser Company, as Borrower, the lenders party thereto,

and Wells Fargo Bank, National Association, as Administrative Agent (incorporated by reference to Exhibit 10.1 to the Current Report on
Form 8-K filed on January 29, 2020 – Commission File Number 1-4825)

(dd) Term Loan Agreement dated July 24, 2017, by and among Weyerhaeuser Company, Northwest Farm Credit Services, PCA, as administrative

agent, and the lender party thereto (incorporated by reference to Exhibit 10 to the Quarterly Report on Form 10-Q filed on July 28, 2017 –
Commission File Number 1-4825)

(ee) First Amendment to Term Loan Agreement dated as of July 22, 2020 by and among Weyerhaeuser Company, Northwest Farm Credit

(ff)

Services, PCA, as administrative agent, and the lender party thereto (incorporated by reference to Exhibit 10.1 to the Current Report on
Form 8-K filed on July 23, 2020 – Commission File Number 1-4825).
Redemption Agreement dated as of August 30, 2016 by and among Southern Diversified Timber, LLC, Weyerhaeuser NR Company, TCG
Member, LLC, Plum Creek Timber Operations I, L.L.C., TCG/Southern Diversified Manager, LLC, Southern Diversified, LLC, Campbell
Opportunity Fund VI, L.P., and Campbell Opportunity Fund VI-A, L.P. (incorporated by reference to Exhibit 10.1 to the Quarterly Report on
Form 10-Q filed on October 28, 2016 – Commission File Number 1-4825)

(gg) Commitment Agreement dated as of January 23, 2019, by and among Weyerhaeuser Company, Athene Annuity and Life Company and State

Street Global Advisors Trust Company. Confidential treatment has been requested for portions of this exhibit pursuant to Rule 24b-2 under
the Securities Exchange Act of 1934, as amended. These portions have been omitted and filed separately with the Securities and Exchange
Commission (incorporated by reference to Exhibit 10(hh) to the Annual Report on Form 10-K for the annual period ended December 31,
2018 – Commission File Number 1-4825)

Code of Business Conduct and Ethics (incorporated by reference to Exhibit 14.1 to the Current Report on Form 8-K filed on August 22, 2016 -
Commission File Number 1-4825)

Subsidiaries of the Registrant

Consent of Independent Registered Public Accounting Firm

Certification of Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended

Certification of Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended

Certification pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of
the United States Code (18 U.S.C. 1350)

14

21

23

31(a)

31(b)

32

—

—

—

—

—

—

101.INS —

Inline XBRL Instance Document

101.SCH —

Inline XBRL Taxonomy Extension Schema Document

101.CAL —

Inline XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF —

Inline XBRL Taxonomy Extension Definition Linkbase Document

101.LAB —

Inline XBRL Taxonomy Extension Label Linkbase Document

101.PRE —
—
104

Inline XBRL Taxonomy Extension Presentation Linkbase Document
The cover page from Weyerhaeuser Company’s Annual Report on Form 10-K for the year ended December 31, 2020 has been formatted in Inline
XBRL.

* Denotes a management contract or compensatory plan or arrangement.
** Filed in paper - hyperlink not required pursuant to Rule 105 of Regulation S-T

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

91

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 February 19, 2021.

WEYERHAEUSER COMPANY

/S/ DEVIN W. STOCKFISH

Devin W. Stockfish
President and Chief Executive Officer

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 February 19, 2021.

/S/ DEVIN W. STOCKFISH

Devin W. Stockfish
Principal Executive Officer and Director

/S/ DAVID M. WOLD

David M. Wold
Principal Accounting Officer

/S/ MARK A. EMMERT

Mark A. Emmert
Director

/S/ MARC F. RACICOT

Marc F. Racicot
Director

/S/ D. MICHAEL STEUERT

D. Michael Steuert
Director

/S/ CHARLES R. WILLIAMSON

Charles R. Williamson
Director

/S/ AL MONACO

Al Monaco
Director

/S/ RUSSELL S. HAGEN

Russell S. Hagen
Principal Financial Officer

/S/ RICK R. HOLLEY

Rick R. Holley
Chairman of the Board and Director

/S/ SARA GROOTWASSINK LEWIS

Sara Grootwassink Lewis
Director

/S/ NICOLE W. PIASECKI

Nicole W. Piasecki
Director

/S/ LAWRENCE A. SELZER

Lawrence A. Selzer
Director

/S/ KIM WILLIAMS

Kim Williams
Director

/S/ DEIDRA C. MERRIWETHER

Deidra C. Merriwether
Director

92

EXHIBIT 31(a)

Certification Pursuant to Rule 13a-14(a)
Under the Securities Exchange Act of 1934
As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Devin W. Stockfish, certify that:
1.
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

I have reviewed this annual report on Form 10-K of Weyerhaeuser Company;

necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

4.

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this report;
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;
designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
and

b)

c)

d)

5.

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons
performing the equivalent functions):
a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial
information; and
any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.

b)

Date: February 19, 2021

/s/ DEVIN W. STOCKFISH

Devin W. Stockfish
President and Chief Executive Officer

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

93

EXHIBIT 31(b)

Certification Pursuant to Rule 13a-14(a)
Under the Securities Exchange Act of 1934
As Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Russell S. Hagen, certify that:
1.
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact

I have reviewed this annual report on Form 10-K of Weyerhaeuser Company;

necessary to make the statements made, in light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;

4.

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this report;
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a–15(e) and 15d–15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)

designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared;
designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by
this report based on such evaluation; and
disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the
registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting;
and

b)

c)

d)

The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons
performing the equivalent functions):
a)

all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial
information; and
any fraud, whether or not material, that involves management or other employees who have a significant role in the
registrant’s internal control over financial reporting.

b)

Date: February 19, 2021

/s/ RUSSELL S. HAGEN

Russell S. Hagen
Senior Vice President and Chief Financial Officer

5.

94

EXHIBIT 32

Certification Pursuant to
18 U.S.C. Section 1350
As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley-Act of 2002, each of the undersigned officers of
Weyerhaeuser Company, a Washington corporation (the “Company”), hereby certifies that:

The Company’s Annual Report on Form 10-K for the year ended December 31, 2020 and dated February 19, 2021 (the “Form 10-K”) fully
complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information contained in the Form 10-K
fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ DEVIN W. STOCKFISH

Devin W. Stockfish
President and Chief Executive Officer

Date: February 19, 2021

/s/ RUSSELL S. HAGEN

Russell S. Hagen
Senior Vice President and Chief Financial Officer

Date: February 19, 2021

WEYERHAEUSER COMPANY > 2019 ANNUAL REPORT AND FORM 10-K

95

[THIS PAGE INTENTIONALLY LEFT BLANK]

[THIS PAGE INTENTIONALLY LEFT BLANK]

[THIS PAGE INTENTIONALLY LEFT BLANK]

ABOUT WEYERHAEUSER

TRANSFER AGENT AND REGISTRAR

Weyerhaeuser Company began operations in 1900 and 
is one of the world’s largest private owners of timberlands. 
We manage these timberlands on a sustainable basis 
in compliance with internationally recognized forestry 
standards.

We are also one of the largest manufacturers of wood 
products. We employ approximately 9,400 people who 
serve customers worldwide. We are listed on the Dow Jones 
Sustainability North American Index. Our company is a 
real estate investment trust. 

Corporate mailing address and telephone
Weyerhaeuser Company 
220 Occidental Avenue South 
Seattle, WA 98104 
206-539-3000

Weyerhaeuser online: www.weyerhaeuser.com

Annual meeting
May 14, 2021. Proxy material will be mailed on or about 
March 31, 2021, to each holder of record of common 
shares on March 18, 2021 (the record date).

Stock exchange and symbol
Weyerhaeuser Company common shares are listed on 
the New York Stock Exchange and trade under the ticker 
symbol WY.

(cid:37)(cid:82)(cid:68)(cid:85)(cid:71)(cid:3)(cid:82)(cid:73)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:86)
(cid:55)(cid:75)(cid:72)(cid:3)(cid:73)(cid:82)(cid:79)(cid:79)(cid:82)(cid:90)(cid:76)(cid:81)(cid:74)(cid:3)(cid:76)(cid:86)(cid:3)(cid:68)(cid:3)(cid:79)(cid:76)(cid:86)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:72)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:82)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:86)(cid:3)(cid:68)(cid:86)(cid:3)
of the date of the mailing of this annual report. 

Board of Directors
Mark A. Emmert – President, National Collegiate Athletic Association
Rick R. Holley (Chairman) – (cid:41)(cid:82)(cid:85)(cid:80)(cid:72)(cid:85)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:15)(cid:3)(cid:51)(cid:79)(cid:88)(cid:80)(cid:3)(cid:38)(cid:85)(cid:72)(cid:72)(cid:78)(cid:3)
Timber Company, Inc.
Sara Grootwassink Lewis – (cid:41)(cid:82)(cid:85)(cid:80)(cid:72)(cid:85)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:15)(cid:3)(cid:47)(cid:72)(cid:90)(cid:76)(cid:86) 
Corporate Advisors
Deidra C. Merriwether – (cid:54)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:57)(cid:76)(cid:70)(cid:72)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:15)(cid:3)
W.W. Grainger, Inc.
Al Monaco – (cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:15)(cid:3)(cid:40)(cid:81)(cid:69)(cid:85)(cid:76)(cid:71)(cid:74)(cid:72)(cid:3)(cid:44)(cid:81)(cid:70)(cid:17)
Nicole W. Piasecki – Former Vice President and General Manager, 
Propulsion Division, Boeing Commercial Airplanes
Marc F. Racicot – (cid:41)(cid:82)(cid:85)(cid:80)(cid:72)(cid:85)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:15) 
American Insurance Association and Former Governor, State of Montana
Lawrence A. Selzer – (cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:15) 
The Conservation Fund
D. Michael Steuert – (cid:41)(cid:82)(cid:85)(cid:80)(cid:72)(cid:85)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:15)(cid:3)(cid:41)(cid:79)(cid:88)(cid:82)(cid:85)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)
(cid:39)(cid:72)(cid:89)(cid:76)(cid:81)(cid:3)(cid:58)(cid:17)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:192)(cid:86)(cid:75)(cid:3)(cid:178)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:15) 
Weyerhaeuser Company
Kim Williams – Former Partner and Senior Vice President, Wellington 
(cid:48)(cid:68)(cid:81)(cid:68)(cid:74)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:38)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:15)(cid:3)(cid:47)(cid:47)(cid:51)
Charles R. Williamson (Lead Independent Director) – Former Executive 
(cid:57)(cid:76)(cid:70)(cid:72)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:15)(cid:3)(cid:38)(cid:75)(cid:72)(cid:89)(cid:85)(cid:82)(cid:81)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:41)(cid:82)(cid:85)(cid:80)(cid:72)(cid:85)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:15) 
Unocal Corporation

(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:86)
(cid:39)(cid:72)(cid:89)(cid:76)(cid:81)(cid:3)(cid:58)(cid:17)(cid:3)(cid:54)(cid:87)(cid:82)(cid:70)(cid:78)(cid:192)(cid:86)(cid:75)(cid:15)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:40)(cid:91)(cid:72)(cid:70)(cid:88)(cid:87)(cid:76)(cid:89)(cid:72)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)
Adrian M. Blocker, Senior Vice President, Timberlands
Russell S. Hagen, (cid:54)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:57)(cid:76)(cid:70)(cid:72)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:39)(cid:72)(cid:89)(cid:72)(cid:79)(cid:82)(cid:83)(cid:80)(cid:72)(cid:81)(cid:87)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:13)
Kristy T. Harlan, Senior Vice President, General Counsel and 
Corporate Secretary 
Nancy S. Loewe, (cid:54)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:57)(cid:76)(cid:70)(cid:72)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:41)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85)(cid:13)
Denise M. Merle, (cid:54)(cid:72)(cid:81)(cid:76)(cid:82)(cid:85)(cid:3)(cid:57)(cid:76)(cid:70)(cid:72)(cid:3)(cid:51)(cid:85)(cid:72)(cid:86)(cid:76)(cid:71)(cid:72)(cid:81)(cid:87)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:38)(cid:75)(cid:76)(cid:72)(cid:73)(cid:3)(cid:36)(cid:71)(cid:80)(cid:76)(cid:81)(cid:76)(cid:86)(cid:87)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:50)(cid:73)(cid:192)(cid:70)(cid:72)(cid:85) 
Keith O’Rear, Senior Vice President, Wood Products

(cid:13) Appointment to the position effective March 8, 2021

Computershare 
PO Box 505000 
Louisville, KY 40233

Computershare, our transfer agent, maintains the records 
for our registered shareholders and can help you with a 
variety of shareholder-related services, including:

• Change of name or address,
• Consolidation of accounts,
• Duplicate mailings,
• Dividend reinvestment and direct stock purchase plan 

enrollment,

(cid:135)(cid:3)(cid:47)(cid:82)(cid:86)(cid:87)(cid:3)(cid:86)(cid:87)(cid:82)(cid:70)(cid:78)(cid:3)(cid:70)(cid:72)(cid:85)(cid:87)(cid:76)(cid:192)(cid:70)(cid:68)(cid:87)(cid:72)(cid:86)(cid:15)
• Transfer of stock to another person, and 
• Additional administrative services.

Access your investor statements online 24 hours a day, 
seven days a week at: www.computershare.com/investor.

(cid:55)(cid:82)(cid:3)(cid:192)(cid:81)(cid:71)(cid:3)(cid:82)(cid:88)(cid:87)(cid:3)(cid:80)(cid:82)(cid:85)(cid:72)(cid:3)(cid:68)(cid:69)(cid:82)(cid:88)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:86)(cid:72)(cid:85)(cid:89)(cid:76)(cid:70)(cid:72)(cid:86)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:82)(cid:74)(cid:85)(cid:68)(cid:80)(cid:86)(cid:3)(cid:68)(cid:89)(cid:68)(cid:76)(cid:79)(cid:68)(cid:69)(cid:79)(cid:72) 
to you, please contact Computershare directly to access 
your account by internet, telephone or mail.

Contact us by telephone
Shareholders in the United States: 800-561-4405 
TDD for hearing-impaired: 800-490-1493

Foreign shareholders: 201-680-6578 
TDD for hearing-impaired: 781-575-4592

Contact us online at www.computershare.com/investor

Contact us by mail
Weyerhaeuser Company 
c/o Computershare  
PO Box 505000 
Louisville, KY 40233

WEYERHAEUSER CONTACT INFORMATION

Investor Relations contact
Elizabeth L. Baum 
Vice President, Investor Relations and Enterprise Planning 
206-539-3907

Shareholder Services contact
Irina West 
Assistant Corporate Secretary 
206-539-4357 | corporatesecretary@weyerhaeuser.com

Ordering company reports
To order a free copy of our 2020 Annual Report and 
Form 10-K, visit: 
http://investor.weyerhaeuser.com/quarterly-and-annual-results

Production notes
This report is printed on 80 lb. Finch Opaque cover, 70 lb. Finch 
Opaque text and 50 lb. Finch Opaque text. The entire report can be 
recycled in regular paper recycling programs. Thank you for recycling!

Printed with
inks containing
soy and/or
vegetable oils

SFI-01682

Working together to be the world’s premier timber, land, 
and forest products company

FOR MORE INFORMATION, VISIT http://investor.weyerhaeuser.com