SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 11-K

þ		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

OR

o		TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

WEYERHAEUSER COMPANY

HOURLY 401(k) PLAN – NUMBER ONE

WEYERHAEUSER COMPANY

A Washington Corporation

Federal Way, Washington 98063
Telephone: (253) 924-2345

 

 

Financial Statements and Exhibit

Item 4:		Plan Financial Statements and Schedule prepared in accordance with the financial reporting requirements of ERISA. Weyerhaeuser Company Hourly 401(k) Plan – Number One statements of net assets available for benefits as of December 31, 2006 and 2005, and the related statement of changes in net assets available for benefits for the year ended December 31, 2006, the supplemental schedule H, line 4i – Schedule of Assets (Held at End of Year) together with report of Independent Registered Public Accounting Firm.
Exhibit:		Consent of Independent Registered Public Accounting Firm

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the members of the Committee who administer the Weyerhaeuser Company Hourly 401(k) Plan – Number One have duly caused this Annual Report to be signed by the undersigned hereunto duly authorized.

June 18, 2007
Date

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN — NUMBER ONE

Financial Statements and Supplemental Schedule

December 31, 2006 and 2005

(With Report of Independent Registered Public Accounting Firm Thereon)

Report of Independent Registered Public Accounting Firm

The Administrative Committee
Weyerhaeuser Company:

We have audited the accompanying statements of net assets available for benefits of the Weyerhaeuser Company Hourly 401(k) Plan – Number One as of December 31, 2006 and 2005, and the related statement of changes in net assets available for benefits for the year ended December 31, 2006. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2006 and 2005, and the changes in net assets available for benefits for the year ended December 31, 2006, in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule H, line 4i – Schedule of Assets (Held at End of Year) is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ KPMG LLP

Seattle, Washington
June 18, 2007

Statements of Net Assets Available for Benefits

December 31, 2006 and 2005

(Dollar amounts in thousands)

		2006				2005
Assets:
Plan interest in the Weyerhaeuser Company 401(k) and Performance Share Plan Trust:
Participant directed investments at fair value:
Shares of registered investment company funds:
Vanguard 500 Index Fund		$	160,683				145,775
Vanguard Extended Market Index Fund			52,131				44,864
Vanguard Prime Money Market Fund			10,447				4,698
Vanguard Target Retirement 2005 Fund			2,050				—
Vanguard Target Retirement 2015 Fund			7,291				—
Vanguard Target Retirement 2025 Fund			3,473				—
Vanguard Target Retirement 2035 Fund			1,426				—
Vanguard Target Retirement 2045 Fund			1,148				—
Vanguard Target Retirement Income Fund			706				—
Vanguard Total Bond Fund			8,813				6,954
Vanguard Total International Stock Index Fund			28,853				14,296
Vanguard Wellesley Income Fund			50,082				44,884
Weyerhaeuser Stable Value Fund			114,932				110,489
Nonparticipant directed investment in Weyerhaeuser Company Stock Fund at fair value			128,649				88,150
Participant loans			4				—
Total investments			570,688				460,110
Employer contributions receivable			4,108				—
Net assets reflecting all investments at fair value			574,796				460,110
Adjustment from fair value to contract value for fully benefit-responsive investment contracts			1,405				1,956
Net assets available for benefits		$	576,201				462,066

     See accompanying notes to financial statements.

Statement of Changes in Net Assets Available for Benefits

Year Ended December 31, 2006

(Dollar amounts in thousands)

		Weyerhaeuser
		Company				All other
		Stock Fund				investments
		(nonparticipant				(participant
		directed)				directed)				Total
Additions:
Contributions:
Employer matching		$	11,088				19				11,107
Employer performance share			4,108				—				4,108
Participant			4,302				39,128				43,430
Total contributions			19,498				39,147				58,645
Net investment income from the Weyerhaeuser Company 401(k) and Performance Share Plan Trust			17,266				46,321				63,587
Total additions			36,764				85,468				122,232
Deductions:
Benefits paid to participants			14,048				44,859				58,907
Net increase prior to interfund transfers and plan transfers			22,716				40,609				63,325
Interfund transfers, net			(17,003	)			17,003				—
Asset transfers in from plan mergers			28,398				594				28,992
Other plan transfers, net			10,496				11,322				21,818
Net increase			44,607				69,528				114,135
Net assets available for benefits:
Beginning of year			88,150				373,916				462,066
End of year		$	132,757				443,444				576,201

See accompanying notes to financial statements.

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN — NUMBER ONE

Notes to Financial Statements

December 31, 2006 and 2005

(1)

Description of the Plan

The following description of the Weyerhaeuser Company Hourly 401(k) Plan – Number One (the Plan) provides only general information. Participants should refer to the summary plan description and plan document for a more complete description of the Plan’s provisions.

(a)

General

The Plan is a defined contribution plan and was established July 1, 1991. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.

Any hourly employee of a participating location of Weyerhaeuser Company (the Company) and its subsidiaries as listed in the Plan’s legal document is eligible to participate in the Plan.

Effective January 1, 2006, eligible hourly employees of certain employee groups that were participating groups of the Plan became eligible to participate in the Weyerhaeuser Company Hourly 401(k) Plan – Number Two and therefore ceased participation in the Plan. The assets of the related participant accounts totaling approximately $24.2 million were transferred from the Plan.

Vanguard Fiduciary Trust Company acts as the trustee, recordkeeper and investment manager for the Plan. Therefore, the Vanguard investment transactions qualify as party-in-interest transactions.

(b)

Plan Mergers

The Plan was amended effective December 31, 2003 to merge all of the assets of the Weyerhaeuser Company 401(k) Plan for Former MacMillan Bloedel Hourly Employees (MacMillan Bloedel Hourly Plan) into the Plan. Participants in the MacMillan Bloedel Hourly Plan commenced participation in the Plan as described in Schedule A of the plan document.

A portion of the assets in the Wilton Connor Packaging, LLC 401(k) Plan (the Wilton Connor Plan) were transferred into the Plan effective March 31, 2006. The amount transferred into the Plan from the Wilton Connor Plan was approximately $594,000. The remaining assets of the Wilton Connor Plan were merged into the Weyerhaeuser Company Investment Growth Plan. Participants of the Wilton Connor Plan who met the Plan’s eligibility requirements were eligible to participate in the Plan at the later of January 1, 2004 or the date of hire with the Company.

Effective July 6, 2006, the assets of the Weyerhaeuser Company Performance Share Plan (the Performance Share Plan) were merged into the Plan, the Weyerhaeuser Company Investment Growth Plan, the Weyerhaeuser Company Hourly 401(k) Plan – Number Two and the NORPAC Hourly 401(k) Plan (collectively, the 401(k) Plans) based on the related participants’ eligibility to participate in the 401(k) Plans. The amount transferred into the Plan from the Performance Share Plan was approximately $28.4 million. The portion of the assets of the Performance Share Plan related to participants who were not eligible to participate or who did not have an account in any of the 401(k) Plans were merged into the Plan.

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN — NUMBER ONE

Notes to Financial Statements

December 31, 2006 and 2005

(c)

Weyerhaeuser Company Stock Fund Dividend and Voting Rights

The portion of the Plan invested in the Weyerhaeuser Company Stock Fund is an Employee Stock Ownership Plan. Participants may elect to have any dividends due to them reinvested in the Weyerhaeuser Company Stock Fund or paid in cash. To the extent set forth by the terms of the Plan, participants may exercise voting rights by providing instructions to the trustee related to the number of whole shares of stock represented by the units of the Weyerhaeuser Company Stock Fund allocated to their accounts. Shares of stock for which the trustee does not receive instructions from participants are voted in the same proportions – for and against, respectively – as shares for which the trustee receives participant voting instructions.

(d)

Contributions

The Plan includes a qualified cash or deferred arrangement as described in Section 401(k) of the Internal Revenue Code (IRC) that generally allows participants to designate any whole percent of their wages to be contributed to the Plan, subject to certain limitations imposed under the IRC.

Participant contributions may be suspended under certain circumstances, at the participant’s request or upon a hardship withdrawal.

The Plan provides for a matching contribution to be made by the Company. During 2006, the five possible Company matching levels were as follows:

	(1)		No matching.
	(2)		The first 5% of eligible compensation designated by each participant as the participant’s contribution is matched by the Company at a rate of 30%.
	(3)		The first $400 of eligible compensation designated by each participant as the participant’s contribution is matched by the Company at a rate of 50%.
	(4)		The first 5% of eligible compensation designated by each participant as the participant’s contribution is matched by the Company at a rate of 50%.
	(5)		The first 7% of eligible compensation designated by each participant as the participant’s contribution is matched by the Company at a rate of 70%.

Matching levels may vary for specific employee groups participating in the Plan. For information regarding the level of Company matching contributions for a specific employee group, refer to the Plan’s legal document. Generally, all employer matching contributions are initially invested in the Weyerhaeuser Company Stock Fund. Two former MacMillan Bloedel Hourly Plan groups and one former Willamette hourly group may direct the investment of their employer matching contributions into any of the fourteen investment options.

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN — NUMBER ONE

Notes to Financial Statements

December 31, 2006 and 2005

Participants may transfer employer matching contributions upon full vesting of their accounts, regardless of age. Participants with employer matching contributions merged into the Plan from the MacMillan Bloedel Hourly Plan (the Merged Funds) may transfer the Merged Funds at any time regardless of age and service.

Following the merger of the Performance Share Plan into the 401(k) Plans, performance share contributions (if any) are made to specified groups of hourly employees as provided in the Plan’s legal document.

Performance share contributions under the Plan, if any, are determined annually by the Weyerhaeuser Company Board of Directors (the Board) in its sole and absolute discretion. Generally, such performance share contributions will be based on measures established by the Board for this purpose and are stated as a percentage of eligible participants’ eligible pay. Performance share contribution levels declared by the Board may vary by business division. Performance share contributions are funded subsequent to the plan year end. For the year ended December 31, 2006, eligible participants of the Plan received a performance share contribution of 0.6% of eligible compensation.

Performance share contributions are initially invested in the Weyerhaeuser Company Stock Fund. Participants may transfer performance share contributions upon full vesting of their accounts.

(e)

Participant Accounts

An individual account is maintained for each plan participant to reflect his or her share of the Plan’s income, participant contributions and employer contributions. Allocations of income are based on the number of units of the various investment funds assigned to each participant’s account.

(f)

Vesting

The interest of a participant in the employer contributions and earnings thereon becomes fully vested upon the earliest date of one of the following events: (1) attainment of the requisite vesting service as described below, (2) retirement at normal or early retirement age under the employer’s retirement plan, (3) attaining age 65, (4) death or total and permanent disability while in the employer’s employ, (5) termination of service due to a plant closure or (6) upon termination of the Plan. The Plan also provides 100% vesting for all involuntary terminations except for violations of certain Company employee conduct standards as set forth in the Plan.

All employees on January 1, 2002, who are eligible to participate in the Plan on or after that date, are 100% vested in their matching contribution accounts. Employees hired after January 1, 2002 vest in their matching contributions and earnings thereon after six years of vesting service according to the following schedule.

		Percent
Years of vesting service		vested
Less than two years of service			0	%
Two years of service			20
Three years of service			40
Four years of service			60
Five years of service			80
Six or more years of service			100

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN — NUMBER ONE

Notes to Financial Statements

December 31, 2006 and 2005

Effective January 1, 2004, participants who became employees of the Company as a result of the Company’s acquisition of Wilton Connor Packaging, LLC in 2003 and were employees of Wilton Connor Packaging, LLC as of January 1, 2004 are 100% vested in the matching contributions and earnings thereon.

Effective December 31, 2005, all employees on such date who were eligible to participate in the Performance Share Plan on such date, and all other participants in the Performance Share Plan who had a balance in the Performance Share Plan as of such date, are 100% vested in their performance share contribution accounts. Employees who first become participants after December 31, 2005 fully vest in any performance share contributions and earnings thereon upon six years of vesting service according to the foregoing vesting schedule.

If a participant is not fully vested in his/her matching contributions and/or performance share contributions upon severance of employment and does not return to active employment with the Company within five years, the participant forfeits his/her matching contributions and/or performance share contributions to the extent they are not vested. Forfeited employer contributions are used to reduce future Company contributions. During 2006, no forfeitures were used to reduce employer contributions. Unallocated forfeitures were approximately $217,000 and $124,000 as of December 31, 2006 and 2005, respectively.

(g)

Investment Options

Participants are allowed to change their investment election for future contributions at any time. Participants have the option to invest up to 100% of their contributions, in 1% increments, in any of the fourteen investment options listed below, of which the six Vanguard Target Retirement Funds became effective January 1, 2006:

Weyerhaeuser Company Stock Fund
Vanguard 500 Index Fund
Vanguard Extended Market Index Fund
Vanguard Prime Money Market Fund
Vanguard Target Retirement 2005 Fund
Vanguard Target Retirement 2015 Fund
Vanguard Target Retirement 2025 Fund
Vanguard Target Retirement 2035 Fund
Vanguard Target Retirement 2045 Fund
Vanguard Target Retirement Income Fund
Vanguard Total Bond Fund
Vanguard Total International Stock Index Fund
Vanguard Wellesley Income Fund
Weyerhaeuser Stable Value Fund

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN — NUMBER ONE

Notes to Financial Statements

December 31, 2006 and 2005

The information related to the Weyerhaeuser Company Stock Fund included in the statements of net assets available for benefits and statement of changes in net assets available for benefits includes both participant directed and nonparticipant directed investments. These amounts cannot be separately determined. As allowed under Statement of Position 99-3, Accounting for and Reporting of Certain Defined Contribution Plan Investments and Other Disclosure Matters, the entire investment is deemed to be nonparticipant directed for purposes of this disclosure.

(h)

Reallocation of Funds

Participants are allowed to reallocate on a daily basis their accounts related to participant contributions and, upon meeting the criteria described in note 1(d), accounts related to employer contributions among the investment options offered by the Plan that the participants have selected.

(i)

Valuation Frequency

Account balances are valued on a daily basis.

(j)

Payment of Benefits

Participant contributions and amounts in the participant’s rollover portion of the account may be withdrawn for financial hardship. Participant contributions may also be withdrawn after attaining age 59 ¹/2. The participant’s vested interest in his or her employer matching contribution, performance share contribution (effective July 6, 2006) and rollover portions of the account may be withdrawn two full calendar years after the date of the contribution or rollover, after five years of service or after attaining age 59 ¹/2. In addition, a participant may elect to receive in cash any cash dividends paid with respect to units of the Weyerhaeuser Company Stock Fund allocated to the participant’s account or to direct payment to the participant’s account for reinvestment in the Weyerhaeuser Company Stock Fund. Additional distribution options (as described in the Plan) may be available to participants who participated in a plan that was merged into the Plan.

Participants who have terminated employment and whose vested account balance exceeds $5,000 shall receive a distribution of their entire interest in the Plan when they so elect or at age 65. Participants whose accounts are valued at $5,000 or less must take a distribution of their entire interest in the Plan at the time of termination. The nonvested portions of the participants’ accounts are forfeited upon distribution of the account or after a five-year period of severance, whichever is earlier.

(k)

Participant Loans

New loans are not allowed by the Plan. Certain loans were transferred from other plans that were merged into the Plan in 2006. The interest rates on outstanding loans as of December 31, 2006 range from 5.25% to 10.5%. The loans mature through April 24, 2008.

(l)

Expenses of the Plan

The employer generally pays the costs of administering the Plan, including fees and expenses of the trustee, the recordkeeper and the external auditor. Brokerage fees, stock transfer taxes and other investment management fees directly incurred by the trustee in buying and selling any assets of each fund are paid by the trust out of such fund as a part of the cost of such assets, or as a reduction of the proceeds received from the sale of such assets. The Vanguard Total International Stock Index Fund (the International Fund) charges a 2% redemption fee whenever a participant transfers to another investment fund in the Plan amounts held in the International Fund for less than two months. The 2% fee is calculated on the amount transferred and is paid back into the International Fund. The fee is designed to ensure that short-term investors pay their share of the International Fund’s transaction costs and that long-term investors do not subsidize the activities of short-term traders. These fees, if any, are included as a component of net investment income in the statement of changes in net assets available for benefits.

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN — NUMBER ONE

Notes to Financial Statements

December 31, 2006 and 2005

(2)

Summary of Accounting Policies

(a)

Basis of Accounting

The financial statements of the Plan were prepared under the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America.

As described in Financial Accounting Standards Board Staff Position, FSP AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit–Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined–Contribution Health and Welfare and Pension Plans (the FSP), investment contracts held by a defined contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the plan. As required by the FSP, the statements of net assets available for benefits present the fair value of the investment contracts as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The statement of changes in net assets available for benefits is prepared on a contract value basis.

(b)

Participation in the Master Trust and Unit Accounting

All of the Plan’s investments are held in the Weyerhaeuser Company 401(k) and Performance Share Plan Trust (the Master Trust) which was established to hold the investments of the Plan and other Weyerhaeuser Company 401(k) and Performance Share plans. Following the merger of the Performance Share Plan into the 401(k) Plans, the Master Trust holds assets of the four 401(k) Plans. The Master Trust and the Plan use unit accounting for recordkeeping purposes. Each “unit” represents a portion of ownership in a fund.

(c)

Investment Valuation and Interest in the Master Trust at Fair Value

The interest in the Master Trust at fair value includes the value of fund assets plus any accrued income. The interest in the Master Trust is reported at fair value based on quoted market prices of each fund, except for the Weyerhaeuser Stable Value Fund, which is valued at contract value, as all contracts within the fund are considered benefit responsive. The fair value of the Weyerhaeuser Stable Value Fund is calculated by discounting the related cash flows based on the Ryan yield curve and the fair values of the underlying investments and the wrapper contracts. The Weyerhaeuser Company Stock Fund is valued at its year-end unit closing price (comprised of year-end market price plus uninvested cash position). Participant loans are valued at cost.

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN — NUMBER ONE

Notes to Financial Statements

December 31, 2006 and 2005

(d)

Income Recognition and Net Investment Income from the Master Trust

Within the Master Trust, purchases and sales of securities are recorded on a trade-date basis. Interest income is accrued when earned. Dividends are recorded on the ex-dividend basis. The change in fair value of assets from one period to the next and realized gains and losses are recorded as net appreciation (depreciation) in fair value of investments. Total investment income (loss) of the Master Trust as presented in note 7 is allocated to each plan investing in the Master Trust based on the units of each fund held by the plan and plan specific participant loans.

(e)

Risks and Uncertainties

The Master Trust and Plan assets are invested in a variety of investments. Investment securities, in general, are exposed to various risks, such as interest rate, credit and overall market volatility risks. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the statements of net assets available for benefits.

(f)

Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of additions and deductions during the reporting period. Actual results could differ from those estimates.

(g)

Payment of Benefits

Benefits are recorded when paid.

(3)

Plan Termination

Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA and the IRC. In the event of plan termination, participants will become fully vested in their accounts.

(4)

Tax Status

The Plan has received a favorable determination letter from the Internal Revenue Service stating that the Plan qualifies under Section 401(a) of the IRC. The Plan has subsequently been amended. Management believes the Plan is designed and is currently being operated in compliance with the applicable requirements of Section 401(a) of the IRC, and as a result, is exempt from federal income taxes under Section 501(a) of the IRC. Employees who participate in the Plan are subject to federal income tax on distributions from the Plan in accordance with the provisions of Section 402 of the IRC.

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN — NUMBER ONE

Notes to Financial Statements

December 31, 2006 and 2005

(5)

Other Plan Transfers

Other plan transfers represent the net amount of participant account balances transferred during the year to the Plan from other plans within the Master Trust as a result of the participants changing employment within the Company and the related changes in their eligibility status and the change of eligibility described in note 1(a).

(6)

Guaranteed Investment Contracts

Fully benefit-responsive guaranteed investment contracts (GICs) and synthetic guaranteed investment contracts (Synthetic GICs) (the Contracts) included in the Weyerhaeuser Stable Value Fund are valued at contract value, which represents the principal balance of the Contracts, plus accrued interest at the stated contract rate, less payments received and contract charges by the insurance companies. The GICs are issued by a variety of insurance companies. The GIC issuers are contractually obligated to repay the principal and a specified interest rate that is guaranteed to the Plan through the Master Trust. Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. The Synthetic GICs are investments that simulate the performance of a traditional GIC through the use of bonds, Vanguard fixed income common commingled trust funds, registered investment company funds and benefit-responsive wrapper contracts issued by insurance companies to provide market and cash flow protection at stated interest rates. The contract value of the Synthetic GICs held in the Master Trust is comprised of wrappers and common commingled trust funds which total $4.5 million and $390.9 million, respectively, as of December 31, 2006. The contract value of the Synthetic GICs held in the Master Trust was comprised of wrappers, common commingled trust funds, and registered investment company funds totaling $4.7 million, $404.3 million, and $28.2 million, respectively, as of December 31, 2005.

The contracts do not permit the insurance companies to terminate the agreements prior to the scheduled maturity dates. There are no reserves against contract value for credit risk of the contract issuers or otherwise.

Certain events limit the ability of the Plan to transact at contract value with the issuer. Such events include the following: (a) amendments to the plan documents (including complete or partial plan termination or merger with another plan) (b) changes to the Plan’s prohibition on competing investment options or deletion of equity wash provisions; (c) bankruptcy of the plan sponsor or other plan sponsor events (e.g. divestitures or spin-offs of a subsidiary) which cause a significant withdrawal from the Plan or (d) the failure of the trust to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA. The plan administrator does not believe that the occurrence of any such value event, which would limit the Plan’s ability to transact at contract value with participants is probable.

Under the terms of the Contracts, the crediting interest rates are determined quarterly based on the insurance companies’ applicable rate schedules. The aggregate average yield of the Contracts in the Master Trust for the years ended December 31, 2006 and 2005 was 4.6% and 4.4%, respectively. The aggregate average yield credited to participants in the plans in the Master Trust for the years ended December 31, 2006 and 2005 was 4.5% and 4.3%, respectively.

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN — NUMBER ONE

Notes to Financial Statements

December 31, 2006 and 2005

(7)

Interest in Master Trust

At December 31, 2006 and 2005, the Plan’s interest in the net assets of the Master Trust was approximately 18% and 16%, respectively. The following table presents the values of investments held by the Master Trust as of December 31, 2006 and 2005 and the investment income (loss) for the year ended December 31, 2006. Investment income (loss) includes the income (loss) for the Performance Share Plan through July 6, 2006:

		December 31,
		2006				2005
		(Dollar amounts in thousands)
Investments:
Investments in shares of registered investment company funds and Company stock at fair value:
Weyerhaeuser Company Stock Fund including cash equivalents of $0 and $1,544, respectively		$	588,963				630,371
Vanguard 500 Index Fund			851,401				828,016
Vanguard Extended Market Index Fund			308,784				281,696
Vanguard Prime Money Market Fund			64,629				35,221
Vanguard Target Retirement 2005 Fund			11,531				—
Vanguard Target Retirement 2015 Fund			50,354				—
Vanguard Target Retirement 2025 Fund			25,542				—
Vanguard Target Retirement 2035 Fund			14,831				—
Vanguard Target Retirement 2045 Fund			9,723				—
Vanguard Target Retirement Income Fund			1,812				—
Vanguard Total Bond Fund			57,850				50,087
Vanguard Total International Stock Index Fund			202,207				107,838
Vanguard Wellesley Income Fund			333,341				330,889
Investments in Weyerhaeuser Stable Value Fund at fair value (wrapper contracts at $0 fair value):
Traditional guaranteed investment contracts			100,026				152,464
Synthetic guaranteed investment contracts			386,408				432,433
Vanguard Prime Money Market Fund			78,374				14,772
Pending trades and other			373				1,018
Participant loans			53				2
Total investment at fair value			3,086,202				2,864,807
Adjustment from fair value to contract value for fully benefit–responsive investment contracts			6,910				10,633
Total investments		$	3,093,112				2,875,440

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN — NUMBER ONE

Notes to Financial Statements

December 31, 2006 and 2005

		For the year
		ended
		December 31,
		2006
		(Dollar amounts
		in thousands)
Investment income (loss):
Net appreciation (depreciation) in fair value of investments:
Weyerhaeuser Company Stock Fund		$	45,136
Vanguard 500 Index Fund			105,023
Vanguard Extended Market Index Fund			34,999
Vanguard Target Retirement 2005 Fund			344
Vanguard Target Retirement 2015 Fund			2,209
Vanguard Target Retirement 2025 Fund			1,382
Vanguard Target Retirement 2035 Fund			976
Vanguard Target Retirement 2045 Fund			540
Vanguard Target Retirement Income Fund			27
Vanguard Total Bond Fund			(360	)
Vanguard Total International Stock Index Fund			31,302
Vanguard Wellesley Income Fund			10,758
Dividend income			72,604
Interest income			25,646
Net investment income		$	330,586

(8) Subsequent Events

      (a) Freedom to diversify employer contributions

Effective January 1, 2007, the Plan was amended to allow participants to diversify the investment of their accounts related to employer matching and performance share contributions regardless of vesting status. Prior to January 1, 2007, participants could diversify such contributions generally only upon reaching full vesting status, and, for certain cases, upon the attainment of a minimum age.

      (b) Corporate transaction

On March 7, 2007, the Company announced the completion of the transaction to combine its Fine Paper business and related assets with Domtar Inc. to form a new company called Domtar Corporation. Under the terms of the transaction, the Company distributed ownership of its Fine Paper business and related assets to Weyerhaeuser Company common stock shareholders by means of a voluntary exchange offer. Domtar Corporation common stock was not available as an investment option under the Plan. As a result of the transaction, certain Plan participants became employees of Domtar Corporation on the transaction effective date. Accordingly, these participants, as former employees of the Company, can elect to take distributions of their accounts in accordance with Plan provisions.

WEYERHAEUSER COMPANY
HOURLY 401(k) PLAN – NUMBER ONE

Schedule H, Line 4i – Schedule of Assets (Held at End of Year)

December 31, 2006

(Dollar amounts in thousands)

Identity of issuer,
borrower, lessor,				Current
or similar party		Description of investment		value
*Participant loans		Participant loans with interest rates ranging from 5.25% to 10.5% and maturity through April 24, 2008		$	4

See accompanying report of Independent Registered Public Accounting Firm.