Required: a. 1. How many shares of common stock had been issued as of December 3

Question

Required:
a. 1. How many shares of common stock had been issued as of December 31, 2010?

2. How many shares of common stock were outstanding as of December 31, 2010?

3. What share number is used to compute basic earnings per share for 2010? Describe the computation of this number.

4. What share number was used to compute diluted earnings per share for 2010? Describe the computation of this number.

5. Why the substantial difference in shares outstanding at December 31, 2010 and the weighted average shares outstanding at December 31, 2010?

b. What earnings per share number would analysts likely put more emphasis on for the year-end period ended December 31, 2010?

c. Compute the book value for December 31, 2010.

WEYERHAEUSER COMPANY* CONSOLIDATED STATEMENT OF OPERATIONS for the three-year ended December 31, 2010 DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER SHARE FIGURES 2010 2009 2008 Net sales and revenues $        6,552 $        5,528 $        8,100 Cost of products sold $        5,392 $        5,127 $        7,508 Gross margin $        1,160 $           401 $           592 Selling, general and administrative expenses $           677 $           709 $           996 Research and development expenses $             34 $             51 $             66 Alternative fuel mixture credits (Note 21) $              -   $         (344) $              -   Charges for restructuring, closures and impairments (Note 19) $           149 $           698 $        2,118 Other operating costs (income), net (Note 20) $         (168) $         (266) $             13 Operating income (loss) $           468 $         (447) $      (2,601) Interest income and other $             83 $             74 $           366 Impairment of investments and other related charges (Note 19) $             (3) $             (7) $         (160) Interest expense, net of capitalized interest $         (452) $         (462) $         (414) Earnings (loss) from continuing operations before income taxes $             96 $         (842) $      (2,809) Income tax benefit (Note 21) $        1,187 $           274 $           900 Earnings (loss) from continuing operations    $        1,283 $         (568) $      (1,909) Earnings from discontinued operations, net of income taxes (Note 4) $              -   $              -   $           667 Net earnings (loss) $        1,283 $         (568) $      (1,242) Less: net (earnings) loss attributable to noncontrolling interests $             (2) $             23 $             66 Net earnings (loss) attributable to Weyerhaeuser common shareholders $        1,281 $         (545) $      (1,176) Basic earnings (loss) per share attributable to Weyerhaeuser common shareholders (Note 5):      Continuing operations $          4.00 $        (2.58) $        (8.72)      Discontinued operations $              -   $              -   $          3.15      Net earnings (loss) per share $          4.00 $        (2.58) $        (5.57) Diluted earnings (loss) per share attributable to Weyerhaeuser common shareholders (Note 5):      Continuing operations $          3.99 $        (2.58) $        (8.72)      Discontinued operations $              -   $              -   $          3.15      Net earnings (loss) per share $          3.99 $        (2.58) $        (5.57) Dividends paid per share (Note 2) $        26.61 $          0.60 $          2.40 Weighted average shares outstanding (in thousands) (Note 5)      Basic        319,976        211,342        211,258      Diluted        321,096        211,342        211,258 CONSOLIDATED BALANCE SHEET (In Part) LIABILITIES AND EQUITY Dollar amounts in millions, except per-share figures 12/31/10 12/31/09 Total liabilities $        8,815 $      11,196 Equity:      Weyerhaeuser shareholders' interest (Notes 2, 17, and 18):         Common shares: $1.25 per par value, authorized            1,360,000,000 and 400,000,000 shares; issued and               outstanding: 535,975,518 and 211,358,955 shares $           670 $           264         Other capital $        4,552 $        1,786         Retained earnings $           181 $        2,658         Cumulative other comprehensive loss $         (791) $         (664)      Total Weyerhaeuser shareholders' interest $        4,612 $        4,044      Noncontrolling interests $               2 $             10 Total equity $        4,614 $        4,054 Total liabilities and equity $      13,429 $      15,250 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY AND COMPREHENSIVE INCOME (In Part) FOR THE THREE-YEAR PERIOD ENDED DECEMBER 31, 2010 DOLLAR AMOUNTS IN MILLIONS 2010 2009 2008 Common Shares:      Balance at beginning of year $           264 $           264 $           262      Issued for exercise of stock options $               1 $              -   $              -        Retraction or redemption of exchangeable shares $              -   $              -   $               2     Special Dividend (Note 17) $           405 $              -   $              -       Balance at end of year $           670 $           264 $           264

Required:
a. 1. How many shares of common stock had been issued as of December 31, 2010?

2. How many shares of common stock were outstanding as of December 31, 2010?

3. What share number is used to compute basic earnings per share for 2010? Describe the computation of this number.

4. What share number was used to compute diluted earnings per share for 2010? Describe the computation of this number.

5. Why the substantial difference in shares outstanding at December 31, 2010 and the weighted average shares outstanding at December 31, 2010?

b. What earnings per share number would analysts likely put more emphasis on for the year-end period ended December 31, 2010?

c. Compute the book value for December 31, 2010.

Explanation / Answer

Required
a. 1 how many shares of common stock had been issued as of December 31, 2010?

Number of Shares issued during 2010 amounting to 324616563

(535975518 – 211358955)

2. How many shares of common stock were outstanding as of December 31, 2010?

Number of Shares outstanding during 2010 amounting to 535,975,518

3. What share number is used to compute basic earnings per share for 2010? Describe the computation of this number.

319, 976,000 are used to compute the basic earnings per share for 2010.

Calculation

Net earnings (loss) attributable to Weyerhaeuser common shareholders (A)

1,281,000,000

Weighted average shares outstanding ( B)

319,976,000

Earnings Per Share ( A / B)

4

4. What share number was used to compute diluted earnings per share for 2010? Describe the computation of this number.

321, 096,000 are used to compute the basic earnings per share for 2010.

Calculation

Net earnings (loss) attributable to Weyerhaeuser common shareholders (A)

1,281,000,000

Weighted average shares outstanding ( B)

321,096,000

Earnings Per Share ( A / B)

3.99

5. Why the substantial difference in shares outstanding at December 31, 2010 and the weighted average shares outstanding at December 31, 2010?

The substantial difference is due to the fact of issue for exercise of stock options and special dividend.

b. What earnings per share number would analysts likely put more emphasis on for the year-end period ended December 31, 2010?

Analysts put more emphasis on Diluted earnings per share as it takes into account all convertible securities in the outstanding number of shares.

c. Compute the book value for December 31, 2010.

Book Value for December 31, 2010 was $13,429,000,000.

Net earnings (loss) attributable to Weyerhaeuser common shareholders (A)

1,281,000,000

Weighted average shares outstanding ( B)

319,976,000

Earnings Per Share ( A / B)

4

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