WEYERHAEUSER CO Fair Value Disclosure

NOTE 12: FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF DEBT

To estimate the fair value of fixed rate 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 value with only insignificant differences. The inputs to the valuations of our long-term debt 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 DERIVATIVE INSTRUMENTS DESIGNATED AS CASH FLOW HEDGES

The Derivative Instruments section of Note 1: Summary of Significant Accounting Policies provides information about how we account for derivative instruments as cash flow hedges.

Interest Rate Swap Hedging Relationship

In 2025, we entered into interest rate swaps with the risk management objective of managing exposure to interest rate volatility by converting variable rate debt obligations associated with our new $800 million term loan into fixed rate payments. The interest rate swaps provide the right to make fixed rate payments to the counterparty in exchange for variable, SOFR-based payments on a monthly settlement schedule. As of December 31, 2025, our interest rate swap agreements with an aggregate notional amount of $800 million were designated as cash flow hedging instruments of variable, SOFR-based interest payments on our $800 million term loan. No comparable activity was present as of and for the year ended December 31, 2024.

An unrealized loss on interest rate swaps designated as cash flow hedging instruments of $3 million was recognized in "Other comprehensive income" in our Consolidated Statement of Comprehensive Income for the year ended December 31, 2025. The unrealized loss of $3 million was recorded in "Accumulated other comprehensive loss" on our Consolidated Balance Sheet as of December 31, 2025.

As of December 31, 2025, the current and noncurrent fair value of interest rate swaps designated as cash flow hedging instruments in a liability position of $1 million and $2 million are recorded in "Accrued Liabilities" and "Other Liabilities" on our Consolidated Balance Sheet, respectively.

Foreign Currency Hedging Relationship

In 2025, we entered into forward contracts with the risk management objective of reducing foreign exchange risk associated with the variability in cash flows from the settlement of forecasted foreign currency-denominated purchases of equipment. Our forward contracts provide the right to buy specified quantities of euros during predetermined future periods at predetermined future rates. As of December 31, 2025, all forward contracts with an aggregate notional amount of $32 million were designated as cash flow hedging instruments of hedged forecasted foreign-currency denominated purchases of equipment. No comparable activity was present as of and for the year ended December 31, 2024.

An unrealized gain on forward contracts designated as cash flow hedging instruments of $6 million was recognized in “Other comprehensive income” in our Consolidated Statement of Comprehensive Income for the year ended December 31, 2025. The unrealized gain of $6 million was recorded in “Accumulated other comprehensive loss” on our Consolidated Balance Sheet as of December 31, 2025.

As of December 31, 2025, the current and noncurrent fair value of forward contracts designated as cash flow hedging instruments in an asset position of $2 million and $1 million are recorded in "Prepaid expenses and other current assets" and "Other assets" on our Consolidated Balance Sheet, respectively.

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.