What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-08-07 compared with 2024-05-08 · 109 added, 81 removed, 180 unchanged (51% of the section changed)

12 unchanged sentences

Demand for our products correlates positively with new home construction and repair and remodeling activity in North America, which historically has been characterized by significant cyclicality.

Census Bureau reported on April 16, 2024, that actual single-family housing starts were 27% higher for the three months ended March 31, 2024 as compared to the same period in 2023.

Actual multi-family housing starts for the three months ended March 31, 2024 were about 37% lower as compared to the same period in 2023.

Repair and remodeling activity is difficult to reasonably measure, but many indications suggest that repair and remodeling activity is moderating and may have exhibited year-over-year declines.

Census Bureau reported on July 17, 2024, that actual single-family housing starts were 7% higher for the three months ended June 30, 2024, and 16% higher for the six months ended June 30, 2024, as compared to the same periods in 2023.

Actual multi-family housing starts for the three and six months ended June 30, 2024 were about 35% lower as compared to the same periods in 2023.

Repair and remodeling activity is difficult to reasonably measure, but many indicators suggest that it has declined modestly year-over-year.

Future economic conditions in the United States and the demand for homes are uncertain due to inflationary impacts on the economy, including interest rates, employment levels, consumer confidence, and financial markets, among other things.

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Critical Accounting Policies and Significant Estimates

Note 1 of the Notes to the Condensed Consolidated Financial Statements included in our 2023 Annual Report on Form 10-K is a discussion of our significant accounting policies and significant accounting estimates and judgments.

Note 1 of the Notes to the Consolidated Financial Statements included in our 2023 Annual Report on Form 10-K is a discussion of our significant accounting policies and significant accounting estimates and judgments.

Throughout the preparation of the financial statements, we employ significant judgments in the application of accounting principles and methods.

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Non-GAAP financial measures do not have standardized definitions and are not defined by U.S.

In this quarterly report on Form 10-Q, we disclose income attributed to LP before interest expense, provision for income taxes, depreciation and amortization, and excluding stock-based compensation expense, loss on impairment attributed to LP, business exit charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items, as Adjusted EBITDA (Adjusted EBITDA), which is a non-GAAP financial measure.

In this quarterly report on Form 10-Q, we disclose income attributed to LP before interest expense, provision for income taxes, depreciation and amortization, and excluding stock-based compensation expense, loss on impairment attributed to LP, business exit charges and credits, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items, as Adjusted EBITDA (Adjusted EBITDA), which is a non-GAAP financial measure.

We have included Adjusted EBITDA in this report because we view it as an important supplemental measure of our performance and believe that it is frequently used by interested persons in the evaluation of companies that have different financing and capital structures and/or tax rates.

We also disclose income attributed to LP, excluding loss on impairment attributed to LP, business exit charges, product-line discontinuance charges, interest expense outside of normal operations, other operating credits and charges, net, loss on early debt extinguishment, gain (loss) on acquisition, and pension settlement charges, and adjusting for a normalized tax rate, as Adjusted Income (Adjusted Income).

We also disclose income attributed to LP, excluding loss on impairment attributed to LP, business exit charges and credits, product-line discontinuance charges, interest expense outside of normal operations, other operating credits and charges, net, loss on early debt extinguishment, gain (loss) on acquisition, and pension settlement charges, and adjusting for a normalized tax rate, as Adjusted Income (Adjusted Income).

We also disclose Adjusted Diluted EPS, which is calculated as Adjusted Income divided by diluted shares outstanding.

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Reconciliations of Adjusted EBITDA, Adjusted Income and Adjusted Diluted EPS to their most directly comparable U.S.

GAAP financial measure, Net income, are presented below.

GAAP financial measures, net income, income attributed to LP, and income attributed to LP per diluted share, respectively, are presented below.

Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS are not substitutes for the U.S.

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The following table reconciles net income to Adjusted EBITDA (dollar amounts in millions):

Three Months Ended March 31,

Net income $ 108 $ 22

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

2024 2023 2024 2023

Net income (loss) $ 160 $ (21) $ 267 $ 1

Add (deduct):

Net income attributed to non-controlling interest — (1)

Income attributed to LP 108 21

Net loss attributed to non-controlling interest — 1 — —

Income (loss) attributed to LP 160 (20) 267 1

Provision for income taxes 53 21 94 22

2 unchanged sentences

Other operating credits and charges, net 1 17 1 22

Business exit charges (1) —

Business exit charges and credits (14) 34 (15) 34

Interest expense 4 3 8 6

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Siding $ 105 $ 59 $ 195 $ 126

OSB 125 37 215 42

LPSA 10 13 20 24

Other (2) (6) (3) (14)

2 unchanged sentences

The following table provides the reconciliation of net income to Adjusted Income (dollar amounts in millions, except per share amounts):

Three Months Ended March 31,

Net income per share - diluted $ 1.48 $ 0.29

Net income $ 108 $ 22

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

2024 2023 2024 2023

Net income (loss) per share - diluted $ 2.23 $ (0.28) $ 3.71 $ 0.02

Net income (loss) $ 160 $ (21) $ 267 $ 1

Add (deduct):

Net income attributed to non-controlling interest — (1)

Income attributed to LP 108 21

Net loss attributed to non-controlling interest — 1 — —

Income (loss) attributed to LP 160 (20) 267 1

Other operating credits and charges, net 1 17 1 22

Business exit charges (1) —

Business exit charges and credits (14) 34 (15) 34

Pension settlement charges — — — 6

17 unchanged sentences

Other companies may present housing start data differently, and therefore, as presented by us, our housing start data may not be comparable to similarly titled performance indicators reported by other companies.

The following table sets forth housing starts for the three months ended March 31, 2024 and 2023 (in thousands):

Three Months Ended March 31,

The following table sets forth housing starts for the three and six months ended June 30, 2024 and 2023 (in thousands):

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

2024 2023 2024 2023

Housing starts 1 :

1 unchanged sentence

Multi-Family 92 139 172 266

373 400 693 715

1 Actual U.S.

housing starts data, in thousands, reported by the U.S.

Census Bureau as published through April 16, 2024.

Census Bureau as published through July 17, 2024.

We monitor sales volumes for our products in our Siding, OSB, and LPSA segments, which we define as the number of units of our products sold within the applicable period.

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We believe that sales volumes can be a useful measure for evaluating and understanding our business.

The following table sets forth sales volumes for the three months ended March 31, 2024 and 2023:

Three Months Ended March 31, 2024 Three Months Ended March 31, 2023

The following table sets forth sales volumes for the three and six months ended June 30, 2024 and 2023:

Three Months Ended June 30, 2024 Three Months Ended June 30, 2023

Sales Volume Siding OSB LPSA Total Siding OSB LPSA Total

2 unchanged sentences

OSB - commodity (MMSF) — 415 — 415 — 354 — 354

We measure OEE of each of our mills to track improvements in the utilization and productivity of our manufacturing assets.

Six Months Ended June 30, 2024 Six Months Ended June 30, 2023

Sales Volume Siding OSB LPSA Total Siding OSB LPSA Total

Siding Solutions (MMSF) 858 — 18 876 760 — 19 779

OSB - Structural Solutions (MMSF) — 895 266 1,161 — 739 255 993

OSB - commodity (MMSF) — 830 — 830 — 736 — 736

We measure OEE at each of our mills to track improvements in the utilization and productivity of our manufacturing assets.

OEE is a composite metric that considers asset uptime (adjusted for capital project downtime and similar events), production rates, and finished product quality.

We believe that when used in conjunction with other metrics, OEE can be a useful measure for evaluating our ability to generate profits, and that providing this measure should allow interested persons to monitor operational improvements.

We use a best-in-class target across all LP sites that allows us to optimize capital investments, focus maintenance and reliability improvements, and improve overall equipment efficiency.

We believe that OEE, when used in conjunction with other metrics, can be a useful measure for evaluating our ability to generate profits, and that providing this measure should allow interested persons to monitor operational improvements.

We use a best-in-class target across all LP manufacturing sites that allows us to optimize capital investments, focus maintenance and reliability improvements, and improve overall equipment efficiency.

It should be noted that other companies may present OEE data differently, and therefore, as presented by us, OEE data may not be comparable to similarly titled measures reported by other companies.

OEE for the three months ended March 31, 2024 and 2023 for each of our segments is listed below:

Three Months Ended March 31,

OEE for the three and six months ended June 30, 2024 and 2023 for each of our segments is listed below:

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

2024 2023 2024 2023

Siding 77 % 78 % 78 % 77 %

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See "Note 15 - Selected Segment Data" of the Notes to the Condensed Consolidated Financial Statements included in "Item 1 - Financial Statements" of this quarterly report on Form 10-Q for further information regarding our segments.

The Siding segment serves diverse end markets with a broad product offering, including LP SmartSide Trim & Siding, LP SmartSide ExpertFinish Trim & Siding, LP BuilderSeries Lap Siding, and LP Outdoor Building

Solutions (collectively referred to as Siding Solutions).

Our Siding Solutions products consist of a full line of engineered wood siding, trim, soffit, and fascia.

Segment net sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):

Three Months Ended March 31,

2024 2023 % Change

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

2024 2023 % Change 2024 2023 % Change

Net sales $ 415 $ 320 30 % $ 776 $ 651 19 %

1 unchanged sentence

Net sales in this segment by product line were as follows (dollar amounts in millions):

Three Months Ended March 31,

2024 2023 % Change

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

2024 2023 % Change 2024 2023 % Change

Siding Solutions $ 413 $ 318 30 % $ 772 $ 647 19 %

1 unchanged sentence

Total $ 415 $ 320 30 % $ 776 $ 651 19 %

Percent changes in average net sales prices and unit shipments for the three months ended March 31, 2024, compared to the corresponding period in 2023, were as follows:

Percent changes in average net sales prices and unit shipments for the three and six months ended June 30, 2024, compared to the corresponding periods in 2023, were as follows:

Three Months Ended

March 31, 2024 versus 2023

June 30, 2024 versus 2023 Six Months Ended

June 30, 2024 versus 2023

Selling Price Unit

Shipments Average Net

Selling Price Unit

Siding Solutions 6 % 22 % 6 % 13 %

The year-over-year net sales increase for the Siding segment of $30 million for the three months ended March 31, 2024 reflects increased sales volumes and list price increases.

First quarter 2024 Adjusted EBITDA increased year-over-year by $23 million, including the impact of the net sales increase and a $10 million decrease in costs, including freight, raw materials, and labor, partially offset by a $7 million increase in mill overhead.

The year-over-year net sales increase for the Siding segment for the three and six months ended June 30, 2024 reflects increased sales volumes and list price increases.

Second quarter 2024 Adjusted EBITDA increased year-over-year by $46 million, reflecting the impact of the net sales increase and a $5 million net decrease in freight, raw materials, and labor, partially offset by a $7 million increase in mill overhead.

For the six months ended June 30, 2024, the year-over-year increase in Adjusted EBITDA of $69 million primarily reflects the impact of the net sales increase.

The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP Structural Solutions (which includes LP TechShield Radiant Barrier, LP WeatherLogic Air & Water Barrier, LP Legacy Premium Sub-Flooring, LP NovaCore Thermal Insulated Sheathing, LP FlameBlock Fire-Rated Sheathing, and LP TopNotch 350 Durable Sub-Flooring).

OSB is manufactured using wood strands arranged in layers and bonded with resins.

OSB products are manufactured using wood strands arranged in layers and bonded with resins.

Segment net sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):

Three Months Ended March 31,

2024 2023 % Change

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

2024 2023 % Change 2024 2023 % Change

Net sales $ 351 $ 229 53 % $ 664 $ 418 59 %

1 unchanged sentence

Net sales in this segment by product line were as follows (dollar amounts in millions):

Three Months Ended March 31,

2024 2023 % Change

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

2024 2023 % Change 2024 2023 % Change

OSB - Structural Solutions $ 197 $ 135 46 % $ 371 $ 239 56 %

2 unchanged sentences

Total $ 351 $ 229 53 % $ 664 $ 418 59 %

Percent changes in average net sales prices and unit shipments for the three months ended March 31, 2024, compared to the corresponding period in 2023, were as follows:

Percent changes in average net sales prices and unit shipments for the three and six months ended June 30, 2024, compared to the corresponding periods in 2023, were as follows:

Three Months Ended

March 31, 2024 versus 2023

June 30, 2024 versus 2023

Six Months Ended

June 30, 2024 versus 2023

Selling Price Unit

Shipments Average Net

Selling Price Unit

OSB - Structural Solutions 34 % 10 % 28 % 21 %

OSB - commodity 38 % 17 % 43 % 13 %

The year-over-year net sales increase for the OSB segment of $124 million for the three months ended March 31, 2024 reflects a $62 million increase in OSB prices and a $56 million increase in sales volumes.

First quarter 2024 Adjusted EBITDA increased year-over-year by $86 million, reflecting the impact of higher OSB prices and sales volumes, partially offset by higher mill-related costs.

Second quarter 2024 net sales for the OSB segment increased year-over-year by $122 million (or 53%), reflecting a $73 million increase in revenue due to higher OSB selling prices and a $40 million increase in sales volumes.

For the six months ended June 30, 2024, the year-over-year increase in net sales of $246 million (or 59%) reflects a $135 million increase in revenue due to higher OSB selling prices and a $96 million increase in sales volumes.

Adjusted EBITDA for the three and six months ended June 30, 2024 increased year-over-year by $88 million and $174 million, respectively, reflecting the impact of higher OSB prices and sales volumes, partially offset by higher mill-related costs.

Our LPSA segment manufactures and distributes LP OSB structural panel and Siding Solutions products in South America and certain export markets.

2 unchanged sentences

Segment net sales and Adjusted EBITDA for this segment were as follows (dollar amounts in millions):

Three Months Ended March 31,

2024 2023 % Change

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

2024 2023 % Change 2024 2023 % Change

Net sales $ 46 $ 53 (12) % $ 93 $ 108 (14) %

1 unchanged sentence

Net sales in this segment by product were as follows (dollar amounts in millions):

Three Months Ended March 31,

2024 2023 % Change

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

2024 2023 % Change 2024 2023 % Change

OSB - Structural Solutions $ 41 $ 46 (10) % $ 79 $ 92 (14) %

2 unchanged sentences

Total $ 46 $ 53 (12) % $ 93 $ 108 (14) %

Percent changes in average net sales price and unit shipments for the three months ended March 31, 2024, compared to the corresponding period in 2023, were as follows:

Percent changes in average net sales price and unit shipments for the three and six months ended June 30, 2024, compared to the corresponding periods in 2023, were as follows:

Three Months Ended

March 31, 2024 versus 2023

June 30, 2024 versus 2023 Six Months Ended

June 30, 2024 versus 2023

Selling Price Unit

Shipments Average Net

Selling Price Unit

OSB - Structural Solutions (16) % 7 % (18) % 5 %

Siding (15) % (19) % (15) % (6) %

The year-over-year net sales decrease for the LPSA segment of $8 million for the three months ended March 31, 2024 reflects lower average selling prices and unfavorable currency fluctuations, partially offset by higher sales volumes.

First quarter 2024 Adjusted EBITDA decreased year-over-year by $2 million, reflecting lower average selling prices and unfavorable currency fluctuations, partially offset by lower raw material costs.

The year-over-year net sales and Adjusted EBITDA decreases for the LPSA segment for the three and six months ended June 30, 2024 reflect unfavorable currency fluctuations, partially offset by local currency revenues.

Our other products segment includes other minor products, services, and closed operations, which do not qualify as discontinued operations.

During the second quarter of 2023, we announced the shutdown of our off-site framing operation Entekra Holdings LLC (Entekra).

Other net sales were $3 million for the three months ended March 31, 2024, as compared to $8 million for the corresponding period in 2023.

The year-over-year decrease in other net sales for the three months ended March 31, 2024 was primarily due to lower Entekra sales volumes as a result of the aforementioned shutdown.

Adjusted EBITDA was $(1) million for the three months ended March 31, 2024, as compared to $(9) million for the corresponding period in 2023.

Other net sales were $2 million and $5 million for the three and six months ended June 30, 2024, respectively, as compared to $9 million and $17 million for the corresponding periods in 2023.

The year-over-year decrease in other net sales for the three and six months ended June 30, 2024 was primarily due to lower Entekra sales volumes as a result of the aforementioned shutdown.

Adjusted EBITDA was $(2) million and $(3) million for the three and six months ended June 30, 2024, respectively, as compared to $(6) million and $(14) million for the corresponding periods in 2023.

Selling, General, and Administrative Expenses

Selling, general, and administrative expenses were $69 million for the three months ended March 31, 2024, compared to $66 million for the corresponding period in 2023.

Selling, general, and administrative expenses were $71 million and $140 million for the three and six months ended June 30, 2024, respectively, compared to $66 million and $133 million for the corresponding periods in 2023.

The year-over-year increase in selling, general, and administrative expenses was driven by higher employee compensation.

We recognized an estimated tax provision of $41 million and $1 million in the three months ended March 31, 2024, and 2023, respectively.

The total effective tax rate for the three months ended March 31, 2024 and 2023 was 28% and 5%, respectively.

We recognized an estimated tax provision of $53 million and $94 million in the three and six months ended June 30, 2024, respectively, as compared to $21 million and $22 million for the corresponding periods in 2023, respectively.

Each quarter the income tax accrual is adjusted to the latest estimate and the difference from the previously accrued year-to-date balance is recorded in the current quarter.

For 2024, the primary differences between the U.S.

statutory rate of 21% and the effective rate related to state taxes and inflationary tax adjustments in certain South American entities.

For 2023 the primary differences between the U.S.

statutory rate of 21% and the effective rate related to benefits from stock-based compensation and inflationary tax adjustments in certain South American entities, partially offset by expenses from state taxes and executive compensation deduction limitations.

statutory rate of 21% and the effective rate relates to state income tax and foreign tax rates.

For 2023, the primary difference between the U.S.

statutory rate of 21% and the effective rate relates to the $22 million tax expense impact from a change in indefinite reinvestment assertion on Chile and Brazil earnings, which is discussed immediately below.

In the second quarter of fiscal 2023 management changed its intent to no longer assert indefinite reinvestment related to undistributed earnings in Chile and Brazil.

As a result, we established a net $22 million deferred tax liability for the expected tax consequences of repatriating all beginning of year cumulative Chile and Brazil earnings, which was recorded as an expense in the second quarter of 2023.

Legal and Environmental Matters

9 unchanged sentences

We may also, from time to time, prepay or repurchase outstanding indebtedness or shares or acquire assets or businesses that are complementary to our operations.

Any such repurchases may be commenced, suspended, discontinued, or resumed, and the method or methods of effecting any such repurchases may be changed, at any time, or from time to time, without prior notice.

Any such share repurchases may be commenced, suspended, discontinued, or resumed, and the method or methods of effecting any such repurchases may be changed, at any time, or from time to time, without prior notice.

We expect to fund our capital expenditures over at least the next 12 months through cash on hand, cash generated from operations, and available borrowing under our Amended Credit Facility, as necessary.

Operating Activities

During the three months ended March 31, 2024 and 2023, cash provided by operations was $105 million and $(119) million, respectively.

During the six months ended June 30, 2024 and 2023, cash provided (used) by operations was $317 million and $(30) million, respectively.

The increase in cash provided by operations was primarily related to higher net income, partially offset by changes in working capital.

Investing Activities

During the three months ended March 31, 2024 and 2023, cash used in investing activities was $41 million and $113 million, respectively.

Capital expenditures for the three months ended March 31, 2024 and 2023, were $41 million and $114 million, respectively.

During the six months ended June 30, 2024 and 2023, cash used in investing activities was $61 million and $271 million, respectively.

During the six months ended June 30, 2024, we received $16 million in proceeds from our share of the sale of certain assets from an equity method investment.

During the six months ended June 30, 2023, we paid $80 million to acquire the assets owned by Wawa OSB, Inc.

Capital expenditures for the six months ended June 30, 2024 and 2023, were $77 million and $188 million, respectively.

The year-over-year decrease was primarily related to siding conversion expenditures in the prior year.

Capital expenditures for the three months ended March 31, 2024 were primarily related to growth and sustaining maintenance projects.

Capital expenditures for the six months ended June 30, 2024 were primarily related to growth and sustaining maintenance projects.

Financing Activities

During the three months ended March 31, 2024, cash used in financing activities was $39 million.

During this period we used $13 million to repurchase shares of LP common stock under the 2022 Share Repurchase Program.

During the six months ended June 30, 2024, cash used in financing activities was $157 million.

During this period, we used $115 million to repurchase shares of LP common stock under the 2022 Share Repurchase Program (defined below).

Additionally, we paid cash dividends of $37 million and used $5 million to repurchase stock from employees in connection with income tax withholding requirements associated with our employee stock-based compensation plans.

During the three months ended March 31, 2023, cash used in financing activities was $27 million.

During the six months ended June 30, 2023, cash used in financing activities was $14 million.

During this period, we paid cash dividends of $35 million and used $9 million to repurchase stock from employees in connection with income tax withholding requirements associated with our employee stock-based compensation plans.

payments were partially financed by net borrowings of $30 million under our Amended Credit Facility during the six months ended June 30, 2023.

Credit Facility and Letter of Credit Facility

In November 2022, LP entered into the Credit Agreement with American AgCredit, PCA, as administrative agent and sole lead arranger, and CoBank, ACB, as letter of credit issuer, relating to the Amended Credit Facility.

Credit Agreement provides for a revolving credit facility in the principal amount of up to $550 million, with a $60 million sub-limit for letters of credit.

The Credit Agreement provides for a revolving credit facility in the principal amount of up to $550 million, with a $60 million sub-limit for letters of credit.

All loans under the Credit Agreement become due on November 29, 2028.

As of March 31, 2024, we had no outstanding borrowings under our Amended Credit Facility.

As of June 30, 2024, we had no outstanding borrowings under our Amended Credit Facility.

The Credit Agreement contains various restrictive covenants and customary events of default.

2 unchanged sentences

, funded debt less unrestricted cash to total capitalization) of no more than 57.5%.

As of March 31, 2024, we were in compliance with all financial covenants under the Credit Agreement.

In March 2020, LP entered into the Letter of Credit Facility, which provides for the funding of letters of credit up to an aggregate outstanding amount of $20 million, which may be secured by certain cash collateral of LP.

The Letter of Credit Facility provides for an unused commitment fee, due quarterly, ranging from 0.50% to 1.875% of the daily available amount to be drawn on each letter of credit issued under the Letter of Credit Facility.

As of June 30, 2024, we were in compliance with all financial covenants under the Credit Agreement.

In May 2024, LP entered into a new letter of credit facility agreement, replacing the letter of credit facility agreement dated May 2020.

This agreement provides for the funding of letters of credit up to an aggregate outstanding amount of $20 million, which may be secured by certain cash collateral of LP (the Letter of Credit Facility).

The Letter of Credit Facility provides for a letter of credit fee, due quarterly, ranging from 1.000% to 1.875% of the daily available amount to be drawn on each letter of credit issued under the Letter of Credit Facility.

The Letter of Credit Facility is subject to similar affirmative, negative, and financial covenants as those set forth in the Credit Agreement, including the capitalization ratio covenant.

As of March 31, 2024, we were in compliance with all covenants under the Letter of Credit Facility.

All amounts outstanding under the Letter of Credit Facility become due on April 15, 2029.

As of June 30, 2024, we were in compliance with all covenants under the Letter of Credit Facility.

Other Liquidity Matters

Off-Balance Sheet Arrangements

As of March 31, 2024, we had standby letters of credit of $14 million outstanding related to collateral for environmental impact on owned properties, a deposit for a forestry license, and insurance collateral, including workers' compensation.

As of June 30, 2024, we had standby letters of credit of $14 million outstanding related to collateral for environmental impact on owned properties, a deposit for a forestry license, and insurance collateral, including workers' compensation.

Potential Impairments

We review the carrying values of our long-lived assets for potential impairments and believe we have adequate support for such carrying values as of March 31, 2024.

We review the carrying values of our long-lived assets for potential impairments and believe we have adequate support for such carrying values as of June 30, 2024.

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 March 31, 2024, there were no indications of impairment.

As of June 30, 2024, 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.

1 unchanged sentence

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 2. Management’s Discussion and Analysis