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NOTE 20: CHARGES FOR CLOSURE OF FACILITIES Weyerhaeuser’s charges for the closure or curtailment of facilities were $124 million in 2007. ASSESSING FACILITIES FOR CLOSURE OR SALE We evaluate operating facilities for closure or sale when they: • are not a long-term strategic fit for us; and • cannot achieve top-quartile performance without significant capital investments. We also continually assess our customers’ needs and change our operating posture to efficiently and effectively meet those needs. In doing so, we consider: • changing market conditions; and • adjusting production levels at many of the company’s operating facilities. Costs related to curtailing operations are also included in the information provided below. Costs Associated With Facility Closures
CLOSURE ACTIVITY In 2007, our costs for announced closures or curtailments included: • four engineered lumber mill facilities; • three oriented strand board (OSB) facilities; • one lumber mill; • one plywood line; • one packaging plant; and • additional costs recognized in connection with previously announced mill closures. Other closure costs include costs of dismantling and demolition of plant and equipment, gain or loss on disposition of assets, environmental cleanup costs and incremental costs to wind down operating facilities. See Note 21: Other Operating Costs (Income), Net for additional charges related to the Miramichi OSB facility that were recognized prior to the decision to close the facility. In 2006, our costs included the following: • announced closure or curtailment of operations at two lumber mills, three plywood and veneer facilities, and one I-Joist facility; • closures of three packaging plants and one sheet plant; • an out-of-period charge of $26 million recognized in the third quarter of 2006 for additional impairment of assets related to the closure of the Prince Albert, Saskatchewan, facility, which was announced in the fourth quarter of 2005. This out-of-period charge is included in discontinued operations in 2006; and • other closure costs, including costs of dismantling and demolition of plant and equipment, gain or loss on disposition of assets, environmental cleanup costs and incremental costs to wind down operating facilities. In 2005, our costs were for announced closures that included: • a pulp and paper facility, a specialty pulp mill, and a large-log sawmill; • a fine paper machine and a containerboard machine; • an I-joist facility and a veneer and plywood facility; • two hardwood facilities; and • seven corrugated converting plants and a bag plant. Of these closures, the pulp and paper facility and fine paper machine closure charges are included in discontinued operations for 2005. ACCRUED TERMINATION BENEFITS Our accrued severance was $53 million as of December 30, 2007. Changes in Our Accrued Termination Benefits Related to Facility Closures During Our Fiscal Year 2007 ![]() |