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Item 1. Financial Statements

2022-11-03 compared with 2022-08-09 · 111 added, 84 removed, 468 unchanged (29% of the section changed)

1 unchanged sentence

Condensed Consolidated Statements of Income

Dollar amounts in millions, except per share amounts

Three Months Ended June 30, Six Months Ended June 30,

Dollar and share amounts in millions, except per share amounts

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

29 unchanged sentences

Dollar amounts in millions

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

10 unchanged sentences

Dollar amounts in millions

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Cash and cash equivalents $ 469 $ 358

Receivables, net of allowance for doubtful accounts of $ 1 million as of June 30, 2022, and December 31, 2021

Receivables, net of allowance for doubtful accounts of $ 1 million as of September 30, 2022, and December 31, 2021

Inventories 337 278

Prepaid expenses and other current assets 24 17

Current assets held for sale 148 68

Current assets of discontinued operations — 68

Total current assets 1,001 890

7 unchanged sentences

Deferred tax asset 4 2

Long-term assets held for sale — 87

Long-term assets of discontinued operations — 87

Total assets $ 2,383 $ 2,194

2 unchanged sentences

Income tax payable 88 13

Current liabilities held for sale 69 34

Current liabilities of discontinued operations — 34

Total current liabilities 430 351

4 unchanged sentences

Other long-term liabilities 69 63

Long-term liabilities held for sale — 42

Long-term liabilities of discontinued operations — 42

Total liabilities $ 1,019 $ 955

2 unchanged sentences

Common stock, $ 1 par value, 200,000,000 shares authorized;

93,546,332 and 77,241,859 shares issued and outstanding, respectively, as of June 30, 2022;

87,986,865 and 71,690,061 shares issued and outstanding, respectively, as of September 30, 2022;

and 102,415,883 and 85,636,154 shares issued and outstanding, respectively, as of December 31, 2021

1 unchanged sentence

Retained earnings 1,395 1,239

Treasury stock, 16,304,473 shares and 16,779,729 shares, at cost as of June 30, 2022, and December 31, 2021, respectively

Treasury stock, 16,296,804 shares and 16,779,729 shares, at cost as of September 30, 2022, and December 31, 2021, respectively

( 390 ) ( 390 )

5 unchanged sentences

Dollar amounts in millions

Six Months Ended June 30,

Nine Months Ended September 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

2 unchanged sentences

Depreciation and amortization 99 88

Gain on sale of joint ventures ( 39 ) —

Gain on sale of assets ( 157 ) —

Deferred taxes 27 15

10 unchanged sentences

Property, plant, and equipment additions ( 282 ) ( 133 )

Proceeds from business divestiture 59 —

Proceeds from sales of assets 265 —

Other investing activities 3 3

46 unchanged sentences

94 $ 94 16 $ ( 390 ) $ 457 $ 1,505 $ ( 181 ) $ 1,484

Net income attributed to LP — — — — — 226 — 226

Dividends paid (0.22 per share)

— — — — — ( 16 ) — ( 16 )

Issuance of shares under stock plans — — — — — — — —

Purchase of stock ( 6 ) ( 6 ) — — — ( 320 ) — ( 325 )

Compensation expense associated with stock-based compensation — — — — 2 — — 2

Other comprehensive loss — — — — — — ( 9 ) ( 9 )

Balance, September 30, 2022

88 $ 88 16 $ ( 390 ) $ 459 $ 1,395 $ ( 190 ) $ 1,361

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

26 unchanged sentences

114 $ 114 17 $ ( 390 ) $ 446 $ 1,413 $ ( 149 ) $ 1,433

Net income attributed to LP — — — — — 365 — 365

Dividends paid ($0.18 per share)

— — — — — ( 17 ) — ( 17 )

Purchase of stock ( 7 ) ( 7 ) — — ( 392 ) — ( 399 )

Compensation expense associated with stock-based compensation — — — — 5 — — 5

Other comprehensive income — — — — — — ( 19 ) ( 19 )

Balance, September 30, 2021

107 $ 107 17 $ ( 390 ) $ 451 $ 1,369 $ ( 168 ) $ 1,368

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

7 unchanged sentences

References to "LP," the "Company," "we," "our," and "us" refer to Louisiana-Pacific Corporation and its consolidated subsidiaries as a whole.

In June 2022, LP and one of its wholly-owned subsidiaries entered into an asset purchase agreement with Pacific Woodtech Corporation, a Washington corporation, and Pacific Woodtech Canada Holdings Limited, a British Columbia limited company (collectively, the Purchaser).

Pursuant to the terms and conditions of the asset purchase agreement, LP agreed to sell to the Purchaser the assets related to its Engineered Wood Products (EWP) segment in exchange for the Purchaser’s payment to the Company of $ 210 million in cash, subject to certain purchase price adjustments, and the Purchaser’s assumption of certain liabilities of the EWP segment.

On August 1, 2022, the Company completed the sale of the EWP assets to the Purchaser.

Upon closing, the Company entered into a transition services agreement with the Purchaser, pursuant to which the Company agreed to support the various activities of the EWP segment for a period not to exceed eight months .

As of June 30, 2022, we have classified the related assets and liabilities associated with the EWP segment as held for sale in our Condensed Consolidated Balance Sheets.

In August 2022, LP and one of its wholly-owned subsidiaries sold the assets related to the Engineered Wood Products (EWP) segment to P acific Woodtech Corporation, a Washington corporation, and Pacific Woodtech Canada Holdings Limited, a British Columbia limited company (collectively, the Purchaser) for $ 217 million in gross cash proceeds after taking into account working capital adjustments (including $ 3 million received subsequent to September 30, 2022).

Upon closing, the Company entered into a transition services agreement (TSA) with the Purchaser, pursuant to which the Company agreed to support the various activities of the EWP segment for a period not to exceed eight months .

We have classified the related assets and liabilities associated with the EWP segment as discontinued operations in our Condensed Consolidated Balance Sheets.

The results of our EWP segment have been presented as discontinued operations in our Condensed Consolidated Statements of Income for all periods presented.

12 unchanged sentences

As noted in the segment reporting information in Note 17 below, our reportable segments are Siding, Oriented Strand Board (OSB), and South America (dollar amounts in millions).

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

By product type and family:

6 unchanged sentences

$ 394 $ 388 $ 53 $ 17 $ ( 1 ) $ 852

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

By product type and family:

6 unchanged sentences

$ 312 $ 600 $ 76 $ 30 $ ( 1 ) $ 1,018

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

By product type and family:

6 unchanged sentences

$ 1,083 $ 1,805 $ 190 $ 72 $ ( 2 ) $ 3,149

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

By product type and family:

27 unchanged sentences

This method requires that the effect of potentially dilutive common stock equivalents (stock options, stock-settled appreciation rights (SSARs), restricted stock units, and performance stock units) be excluded from the calculation of diluted earnings per share for the periods in which losses are reported because the effect is anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share (dollar amounts in millions, except per share amounts):

Three Months Ended June 30, Six Months Ended June 30,

The following table sets forth the computation of basic and diluted earnings per share (dollar and share amounts in millions, except per share amounts):

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

1 unchanged sentence

Net loss attributed to noncontrolling interest — — 1 1

Income from continuing operations attributed to LP 348 486 770 803

Income attributed to LP from continuing operations 129 332 898 1,135

Income for discontinued operations, net of income taxes 97 33 196 47

18 unchanged sentences

The assets of the rabbi trust are invested in mutual funds and are reported at fair value based on active market quotations, which represent Level 1 inputs.

The fair value of the 3.625 % Senior Notes due in 2029 (2029 Senior Notes) was estimated to be $ 279 million and $ 358 million as of June 30, 2022, and December 31, 2021, respectively, based on market quotations.

The fair value of the 3.625 % Senior Notes due in 2029 (2029 Senior Notes) was estimated to be $ 276 million and $ 358 million as of September 30, 2022, and December 31, 2021, respectively, based on market quotations.

The 2029 Senior Notes and other long-term debt are categorized as Level 1 in the U.S.

GAAP fair value hierarchy.

Fair values are based on trading activity among the Company’s lenders and the average bid and ask price as determined using published rates.

There were no outstanding amounts borrowed under our Amended Credit Facility (defined below) as of June 30, 2022.

are based on trading activity among the Company’s lenders and the average bid and ask price is determined using published rates.

There were no outstanding amounts borrowed under our Amended Credit Facility (defined below) as of September 30, 2022.

Carrying amounts reported on the balance sheet for cash and cash equivalents, accounts receivables, and accounts payable approximate fair value due to the short-term maturity of these items.

Receivables consisted of the following (dollar amounts in millions):

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Trade receivables $ 147 $ 156

Income tax receivable 4 1

Other receivables 24 13

Income tax receivable — 1

Allowance for doubtful accounts ( 1 ) ( 1 )

1 unchanged sentence

Trade receivables are primarily generated by sales of our products to our wholesale and retail customers.

Other receivables as of June 30, 2022, and December 31, 2021, primarily consist of sales tax receivables, vendor rebates, and other miscellaneous receivables.

Other receivables as of September 30, 2022, and December 31, 2021, primarily consist of sales tax receivables, vendor rebates, and other miscellaneous receivables.

Inventories are valued at the lower of cost or net realizable value.

1 unchanged sentence

The major types of inventories (work in process is not material and is included in Semi-finished inventory) are as follows (dollar amounts in millions):

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Logs $ 45 $ 50

3 unchanged sentences

Total $ 337 $ 278

DISCONTINUED OPERATIONS

DIS CONTINUED OPERATIONS

Engineered Wood Products (EWP)

In June 2022, LP and one of its wholly-owned subsidiaries entered into an asset purchase agreement with the Purchaser.

Pursuant to the terms and conditions of the asset purchase agreement, the Company agreed to sell to the Purchaser the assets related to the EWP segment in exchange for the Purchaser’s payment to the Company of $ 210 million in cash, subject to certain purchase price adjustments, and the Purchaser’s assumption of certain liabilities of the EWP segment.

On August 1, 2022, the Company completed the sale of the EWP assets to the Purchaser.

As a result of the sale, the Company received $ 210 million, subject to post-closing adjustments, and we anticipate recognizing a pre-tax gain on the sale of between $ 120 million to $ 125 million in the third quarter.

The Company has classified the results of its EWP segment as discontinued operations in its Condensed Consolidated Statements of Income for all periods presented.

As of June 30, 2022, and December 31, 2021, we have classified the related assets and liabilities associated with our EWP segment as discontinued operations held for sale in our Condensed Consolidated Balance Sheets.

On August 1, 2022, the Company completed the sale of the assets related to the EWP segment to the Purchaser.

As a result of the sale, the Company received $ 217 million in gross cash proceeds after taking into account working capital adjustments (including $ 3 million received subsequent to September 30, 2022).

The Company paid $ 12 million in direct transaction costs, resulting in net proceeds of $ 205 million.

The net carrying value of the EWP assets at the time of sale was $ 87 million, which resulted in a pre-tax gain of approximately $ 118 million within Income from discontinued operations in the Condensed Consolidated Statements of Income.

Upon closing, the Company entered into the TSA with the Purchaser, pursuant to which the Company agreed to support the various activities of the EWP segment for a period not to exceed eight months .

During the three months ended September 30, 2022, the Company collected $ 33 million on the Purchaser's behalf pursuant to the TSA.

As of September 30, 2022, the Company has $ 14 million due to the Purchaser, which is included in the Condensed Consolidated Balance Sheets.

The Company has classified the results of its EWP segment as discontinued operations in its Condensed Consolidated Statements of Income and we have classified the related assets and liabilities associated with the EWP segment as discontinued operations in our Condensed Consolidated Balance Sheets.

EWP Joint Ventures

In March 2022, we sold our 50 % equity interest in two joint ventures that produce I-joists to Resolute Forest Products Inc.

(Resolute) for $ 59 million.

for $ 59 million.

The total net carrying value of our equity method investment at the date of sale was $ 19 million, and we recognized a gain associated with the sale of $ 39 million within Income from discontinued operations in the Condensed Consolidated Statements of Income.

The following table presents the financial results of the EWP segment (in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

9 unchanged sentences

Income from discontinued operations, net of income taxes $ 97 $ 33 $ 196 $ 47

The following summarizes the total cash provided by operations and total cash used for investing activities related to the EWP segment and included in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2022 and 2021 (in millions):

Six Months Ended June 30,

The following summarizes the total cash provided by operations and total cash used for investing activities related to the EWP segment and included in the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (in millions):

Nine Months Ended September 30,

Net cash provided by discontinued operating activities $ 18 $ 30

Net cash provided by (used in) discontinued investing activities $ 258 $ ( 25 )

Net cash provided by discontinued investing activities for the six months ended June 30, 2022, includes $ 59 million of proceeds from the sale of our 50 % equity interest in two joint ventures that produce I-joists.

Net cash provided by discontinued investing activities for the nine months ended September 30, 2022, includes $ 59 million of proceeds from the sale of our 50 % equity interest in two joint ventures that produce I-joists and $ 202 million of net proceeds from the sale of the EWP segment assets.

The following table presents the aggregate carrying amounts of discontinued operations related to the EWP segment in the Condensed Consolidated Balance Sheets (in millions):

June 30, 2022 December 31, 2021

December 31, 2021

Carrying amounts of assets included as part of discontinued operations:

13 unchanged sentences

The Company’s annual assessment date is October 1.

Changes in goodwill and other intangible assets for the six months ended June 30, 2022, are provided in the following table (dollar amounts in millions):

Changes in goodwill and other intangible assets for the nine months ended September 30, 2022, are provided in the following table (dollar amounts in millions):

Timber licenses 1

3 unchanged sentences

Amortization ( 2 ) — ( 1 ) —

Ending balance June 30, 2022

Ending balance September 30, 2022

$ 28 $ 19 $ 16 $ 2

5 unchanged sentences

Any adjustments to the redemption value of redeemable noncontrolling interest are recognized in either net income or through accumulated paid-in capital, depending on the nature of the underlying security (preferred or common units).

The components of redeemable noncontrolling interest as of June 30, 2022, were as follows (dollar amounts in millions):

The components of redeemable noncontrolling interest as of September 30, 2022, were as follows (dollar amounts in millions):

Beginning balance December 31, 2021

Net loss attributed to noncontrolling interest ( 1 )

Ending balance June 30, 2022

Ending balance September 30, 2022

For interim periods, we recognize income tax expense by applying the estimated annual effective income tax rate to year-to-date results unless this method does not result in a reliable estimate of year-to-date income tax expense.

1 unchanged sentence

Changes in profitability estimates in various jurisdictions will impact our quarterly effective income tax rates.

The tax provision for income taxes from continuing operations for the six months ended June 30, 2022 and 2021, reflected an estimated annual effective tax rate of 25 % and 24 %, respectively, excluding discrete items discussed below.

The total effective tax rate for continuing operations for the three and six months ended June 30, 2022, was 25 % and 24 %, compared to 23 % for the comparable periods in 2021, respectively.

We recorded a net discrete tax benefit of $ 9 million in both the six months ended June 30, 2022 and 2021, with the most significant benefit related to excess tax benefits from stock-based compensation in 2022 and the most significant benefits related to stock-based compensation and adjustments to the prior year, including an adjustment to the deferred tax rate in 2021.

The tax provision for income taxes from continuing operations for the nine months ended September 30, 2022 and 2021, reflected an estimated annual effective tax rate of 25 % and 24 %, respectively, excluding discrete items discussed below.

The total effective tax rate for continuing operations for the three and nine months ended September 30, 2022, was 26 % and 24 %, compared to 25 % and 24 % for the comparable periods in 2021, respectively.

We recognized net discrete tax benefits of $ 9 million and $ 7 million in the nine months ended September 30, 2022 and 2021, respectively.

The discrete tax benefits primarily relate to excess tax benefits from stock-based compensation and changes to estimates in the prior year including our deferred tax rate.

COMMITMENTS AND CONTINGENCIES

We maintain reserves for various contingent liabilities as follows (dollar amounts in millions):

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Environmental reserves $ 27 $ 25

12 unchanged sentences

Our estimates of our environmental loss contingencies are based on various assumptions and judgments, the specific nature of which varies considering the particular facts and circumstances surrounding each environmental loss contingency.

These estimates typically reflect assumptions and judgments as to the

probable nature, magnitude, and timing of the required investigation, remediation, and/or monitoring activities and the probable cost of these activities, and in some cases, reflect assumptions and judgments as to the obligation or willingness and ability of third parties to bear a proportionate or allocated share of the cost of these activities.

These estimates typically reflect assumptions and judgments as to the probable nature, magnitude, and timing of the required investigation, remediation, and/or monitoring activities and the probable cost of these activities, and in some cases, reflect assumptions and judgments as to the obligation or willingness and ability of third parties to bear a proportionate or allocated share of the cost of these activities.

Due to the numerous uncertainties and variables associated with these assumptions and judgments, and the effects of changes in governmental regulation and environmental technologies, both the precision and reliability of the resulting estimates of the related contingencies are subject to substantial uncertainties.

6 unchanged sentences

If demand and pricing for our products fall to levels significantly below cycle average demand and pricing, should we decide to invest capital in alternative projects, or should changes occur related to our wood supply for our mills, it is possible that future impairment charges will be required.

As of June 30, 2022, there were no indications of impairment.

As of September 30, 2022, there were no indications of impairment.

We also review from time to time potential dispositions of various assets, considering current and anticipated economic and industry conditions, our strategic plan, and other relevant factors.

3 unchanged sentences

Such accruals are based upon historical experience and management’s estimate of the level of future claims.

The activity in warranty reserves for the three and six months ended June 30, 2022 and 2021, is summarized in the following table (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,

The activity in warranty reserves for the three and nine months ended September 30, 2022 and 2021, is summarized in the following table (dollar amounts in millions):

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

5 unchanged sentences

Long-term portion of warranty reserves (included in Other long-term liabilities) $ 6 $ 6 $ 6 $ 6

We continue to monitor warranty and other claims associated with our products and believe, as of June 30, 2022, that the warranty reserve balances associated with these matters are adequate to cover future warranty payments.

We continue to monitor warranty and other claims associated with our products and believe, as of September 30, 2022, that the warranty reserve balances associated with these matters are adequate to cover future warranty payments.

However, it is possible that additional changes may be required in the future.

DEFINED BENEFIT PENSION PLANS

The following table summarizes our net periodic pension cost for our defined benefit pension and postretirement plans during the three and six months ended June 30, 2022 and 2021 (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,

The following table summarizes our net periodic pension cost for our defined benefit pension and postretirement plans during the three and nine months ended September 30, 2022 and 2021 (dollar amounts in millions):

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

5 unchanged sentences

Amortization of net loss 1 1 4 4

Loss due to settlement 4 — 4 —

Net periodic pension cost $ 7 $ 1 $ 11 $ 2

2 unchanged sentences

and Canadian defined benefit pension plans (collectively, the Plan), which would result in the full settlement of the Company's Plan obligations.

The distribution of Plan assets pursuant to the termination will not be made until the Plan termination satisfies all regulatory requirements, which is expected to occur by the end of 2022.

Plan participants will receive their full accrued benefits from Plan assets by electing either lump-sum distributions or annuity contracts with a qualifying third-party annuity provider.

The Plan termination is expected to result in pension settlement expense in 2022, which will be determined based on prevailing market conditions, the actual lump-sum distributions, and annuity purchase rates at the date of distribution.

As a result, we are currently unable to reasonably estimate the timing or final amount of such settlement charges.

Upon settlement, we expect to recognize pre-tax pension settlement charges that will include (1) a non-cash charge for the recognition of all pre-tax actuarial losses accumulated in Accumulated other comprehensive loss ($ 98 million as of June 30, 2022) and (2) any cash contributions to settle the Plan’s obligations ($ 8 million net projected benefit obligation as of June 30, 2022).

During the three months ended September 30, 2022, we made lump-sum pension distributions and purchased non-participating group annuity contracts totaling $ 33 million which triggered partial settlement accounting for the Plan.

Accordingly, reflected in the table above is a non-cash pre-tax loss due to settlement of $ 4 million for the three and nine months ended September 30, 2022 representing the recognition of a pro rata portion of the unrecognized loss recorded within Accumulated comprehensive loss.

The changes recognized in Other comprehensive loss were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

Net actuarial gain (loss) and prior service (cost) arising during the period, net of tax $ ( 1 ) $ — $ ( 1 ) $ —

Amortization of actuarial loss, prior service cost and settlements, net of tax $ 4 $ 2 $ 7 $ 3

Total amounts recognized in Other comprehensive income $ 3 $ 2 $ 6 $ 3

Remaining Plan participants will receive their full accrued benefits from Plan assets by electing either lump-sum distributions or annuity contracts with a qualifying third-party annuity provider.

The remaining distribution of Plan assets pursuant to the termination will not be made until the Plan termination satisfies all regulatory requirements.

The remaining Plan termination is expected to be substantially complete in the fourth quarter of 2022 and result in pension settlement expense, which will be determined based on prevailing market conditions, the actual lump-sum distributions, and annuity purchase rates at the date of distribution.

Upon final settlement, we expect to recognize pre-tax pension settlement charges that will include (1) a non-cash charge for the recognition of all pre-tax actuarial losses in Accumulated comprehensive loss ($ 93 million as of September 30, 2022) and (2) any cash contributions to settle the Plan’s obligations ($ 9 million net projected benefit obligation as of September 30, 2022).

The actual amount of the settlement charges and any potential cash contribution will depend on various factors, including interest rates, Plan asset returns, and the lump-sum election rate.

ACCUMULATED COMPREHENSIVE LOSS

Accumulated comprehensive loss is provided in the following table for the three months ended June 30, 2022 and 2021 (dollar amounts in millions):

Accumulated comprehensive loss is provided in the following table for the three months ended September 30, 2022 and 2021 (dollar amounts in millions):

Pension Translation Adjustments Other Total

Balance at March 31, 2022

Balance at June 30, 2022

$ ( 74 ) $ ( 105 ) $ ( 1 ) $ ( 181 )

1 unchanged sentence

Translation adjustments — ( 13 ) — ( 13 )

Balance at June 30, 2022

Balance at September 30, 2022

$ ( 71 ) $ ( 118 ) $ ( 1 ) $ ( 190 )

Pension Translation Adjustments Other Total

Balance at March 31, 2021

Balance at June 30, 2021

$ ( 80 ) $ ( 68 ) $ ( 2 ) $ ( 149 )

1 unchanged sentence

Translation adjustments — ( 21 ) — ( 21 )

Balance at June 30, 2021

Balance at September 30, 2021

$ ( 78 ) $ ( 89 ) $ ( 2 ) $ ( 168 )

Accumulated comprehensive loss is provided in the following table for the six months ended June 30, 2022 and 2021 (dollar amounts in millions):

1 Amounts of actuarial loss and prior service cost are components of net periodic benefit cost.

See Note 14 above for additional details.

Accumulated comprehensive loss is provided in the following table for the nine months ended September 30, 2022 and 2021 (dollar amounts in millions):

Pension Translation Adjustments Other Total

3 unchanged sentences

Translation adjustments — ( 22 ) — ( 22 )

Balance at June 30, 2022

Balance at September 30, 2022

$ ( 71 ) $ ( 118 ) $ ( 1 ) $ ( 190 )

4 unchanged sentences

Translation adjustments — ( 21 ) — ( 21 )

Balance at June 30, 2021

Balance at September 30, 2021

$ ( 78 ) $ ( 89 ) $ ( 2 ) $ ( 168 )

1 Amounts of actuarial loss and prior service cost are components of net periodic benefit cost.

See Note 14 above for additional details.

OTHER OPERATING AND NON-OPERATING ITEMS

1 unchanged sentence

Other operating credits and charges, net, is comprised of the following components (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

6 unchanged sentences

Other non-operating items is comprised of the following components (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

Net periodic pension cost, excluding service cost $ ( 1 ) $ — $ ( 4 ) $ —

Pension settlement charges ( 4 ) — ( 4 ) —

Loss on early debt extinguishment — — — ( 11 )

Foreign currency gain (loss) $ 2 $ ( 2 ) $ ( 3 ) $ ( 2 )

Other $ 1 $ — $ 1 $ —

Other non-operating items $ ( 3 ) $ ( 2 ) $ ( 11 ) $ ( 13 )

4 unchanged sentences

Our results of operations are summarized below for each of these segments separately, as well as for the “Other” category, which comprises other products that are not individually significant.

In June 2022, LP reached an agreement for the sale of its EWP segment assets.

As a result of this transaction, EWP has been reclassified to discontinued operations and is no longer a reportable segment of the Company.

On June 21, 2022, LP reached an agreement for the sale of its EWP segment assets which subsequently closed on August 1, 2022.

As a result of this transaction, the results of the EWP segment have been reclassified to discontinued operations and EWP is no longer a reportable segment of the Company.

See "Note 7 –Discontinued Operations" for additional information.

3 unchanged sentences

Information about our business segments is as follows (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

19 unchanged sentences

Other non-operating items ( 1 ) 2 7 2

Pension settlement charges 4 — 4 —

Adjusted EBITDA $ 200 $ 480 $ 1,289 $ 1,600

5 unchanged sentences

Adjusted EBITDA $ 200 $ 480 $ 1,289 $ 1,600

SUBSEQUENT EVENT

As previously disclosed on May 3, 2022, LP's Board of Directors authorized a share repurchase plan under which LP was authorized to repurchase shares of LP's common stock totaling up to $ 600 million (the 2022 Share Repurchase Program).

Subsequent to June 30, 2022, through August 8, 2022, we used $ 197 million to repurchase 3.4 million shares of LP common stock under the 2022 Share Repurchase Program.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements