|
NOTE 21: OTHER OPERATING COSTS (INCOME), NET Weyerhaeuser’s other operating income, net, was $7 million in 2007. These costs (income): • include both recurring and occasional income and expense items; and • can fluctuate from year to year. Various Income and Expense Items Included in Other Operating Costs (Income), Net  (Gain) loss on disposition of assets for 2007 includes a pretax gain of $29 million in connection with the sale of a box plant in Cerritos, California, a pretax gain of $27 million on the sale of a log export facility in Tacoma, Washington, and pretax gains totaling $28 million related to individual asset sales. Asset impairment charges for 2007 include a charge of $27 million related to the Miramichi, New Brunswick oriented strand board mill. In February 2007, we announced an indefinite curtailment of the Miramichi, New Brunswick OSB mill and the mill was offered for sale. The impairment charge was recognized at that time. We continued to evaluate the strategic options for the facility and in the second quarter of 2007, we announced the closure of the facility. Additional costs of the closure are included in charges for closure of facilities. Asset impairment charges for 2007 also include a $10 million pretax charge related to the Canadian distribution facilities. In the second quarter of 2005, we recognized a gain of $57 million that had been previously deferred in connection with significant sales of nonstrategic timberlands. In the fourth quarter of 2005, we began capitalizing Weyerhaeuser interest on qualifying assets of the Real Estate segment. In the same quarter, we recognized income of $43 million for the cumulative effect of that change. Following are the components of the cumulative effect: Components of the Cumulative Effect on Earnings  The amount of Weyerhaeuser interest capitalized to qualifying Real Estate assets depends upon: • the amount of qualifying Real Estate assets; and • the level of debt held by Real Estate. The amount of Weyerhaeuser interest we include as an expense in cost of products sold depends upon: • volume of sales of qualifying real estate; and • timing of those sales. In the accompanying Consolidated Statement of Earnings for 2005: • $50 million of interest capitalized in 2005 is included in capitalized interest; • $32 million of previously capitalized interest associated with sales of qualifying real estate during 2005 is included in costs of products sold; and • the $25 million net cumulative effect for periods prior to 2005 is included in other operating costs (income), net. Subsequent to 2005, capitalization of this interest is included in Weyerhaeuser capitalized interest and previously capitalized interest associated with sales of qualifying real estate is included in Weyerhaeuser cost of products sold. Foreign exchange gains and losses result from changes in exchange rates primarily related to our Canadian and New Zealand operations. The Foreign Currency Translation section of Note 1: Summary of Significant Accounting Policies provides details about how we translate local currencies into U.S. dollars. |