3 unchanged sentences
QUARTER ENDED
−Removed: YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
Net sales ( Note 3 )
2 unchanged sentences
General and administrative expenses
−Removed: Product remediation recoveries ( Note 14 )
Other operating costs, net ( Note 15 )
Operating income
−Removed: Non-operating pension and other postretirement benefit costs ( Note 7 )
+Added: Non-operating pension and other post-employment benefit costs ( Note 7 )
Interest income and other
Interest expense, net of capitalized interest
−Removed: Earnings (loss) before income taxes
+Added: Earnings before income taxes
Income taxes ( Note 16 )
−Removed: Net earnings (loss)
−Removed: Earnings (loss) per share, basic and diluted ( Note 4 )
+Added: Earnings per share, basic and diluted ( Note 4 )
Weighted average shares outstanding (in thousands) ( Note 4 ):
3 unchanged sentences
QUARTER ENDED
−Removed: YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: Net earnings (loss)
Other comprehensive income (loss):
1 unchanged sentence
Changes in unamortized actuarial loss, net of tax expense of $ 7 and $ 16
−Removed: Changes in unamortized net prior service credit, net of tax expense of $ 0 , $ 0 , $ 0 and $ 0
+Added: Changes in unamortized net prior service credit, net of tax benefit of $ 1 and $ 0
Total other comprehensive income
4 unchanged sentences
DOLLAR AMOUNTS IN MILLIONS, EXCEPT PAR VALUE
−Removed: SEPTEMBER 30,
Current assets:
3 unchanged sentences
Inventories ( Note 5 )
−Removed: Assets held for sale ( Note 15 )
Prepaid expenses and other current assets
−Removed: Current restricted financial investments held by variable interest entities ( Note 6 )
Total current assets
6 unchanged sentences
Current liabilities:
−Removed: Borrowings on line of credit ( Note 9 )
+Added: Current maturities of long-term debt ( Note 9 )
Accounts payable
3 unchanged sentences
Deferred tax liabilities
−Removed: Deferred pension and other postretirement benefits ( Note 7 )
+Added: Deferred pension and other post-employment benefits ( Note 7 )
Other liabilities
5 unchanged sentences
issued and outstanding:
−Removed: 746,398 thousand shares at September 30, 2020 and 745,300 thousand shares at
+Added: 748,751 thousand shares at March 31, 2021 and 747,385 thousand shares at
December 31, 2020
Other capital
−Removed: Retained earnings (accumulated deficit)
+Added: Retained earnings
Accumulated other comprehensive loss ( Note 12 )
3 unchanged sentences
CONSOLIDATED STATEMENT OF CASH FLOWS
−Removed: YEAR-TO-DATE ENDED
+Added: QUARTER ENDED
DOLLAR AMOUNTS IN MILLIONS
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
Cash flows from operations:
−Removed: Net earnings (loss)
−Removed: Noncash charges (credits) to earnings (loss):
+Added: Noncash charges (credits) to earnings:
Depreciation, depletion and amortization
1 unchanged sentence
Deferred income taxes, net
−Removed: Pension and other postretirement benefits ( Note 7 )
+Added: Pension and other post-employment benefits ( Note 7 )
Share-based compensation expense ( Note 13 )
−Removed: Timber casualty loss ( Note 16 )
Receivables, net
2 unchanged sentences
Accounts payable and accrued liabilities
−Removed: Pension and postretirement benefit contributions and payments
+Added: Pension and post-employment benefit contributions and payments
Net cash from operations
8 unchanged sentences
Net proceeds from issuance of long-term debt ( Note 9 )
−Removed: Payments on long-term debt ( Note 9 )
Proceeds from borrowings on line of credit ( Note 9 )
Payments on line of credit ( Note 9 )
−Removed: Payments on debt held by variable interest entities ( Note 6 )
Proceeds from exercise of stock options
−Removed: Repurchases of common shares ( Note 4 )
Net cash from financing activities
−Removed: Net change in cash, cash equivalents and restricted cash
−Removed: Cash, cash equivalents and restricted cash at beginning of period
−Removed: Cash, cash equivalents and restricted cash at end of period
+Added: Net change in cash and cash equivalents
+Added: Cash and cash equivalents at beginning of period
+Added: Cash and cash equivalents at end of period
Cash paid (received) during the period for:
5 unchanged sentences
QUARTER ENDED
−Removed: YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
Common shares:
1 unchanged sentence
Issued for exercise of stock options and vested restricted stock units
−Removed: Repurchases of common shares ( Note 4 )
Balance at end of period
2 unchanged sentences
Issued for exercise of stock options
−Removed: Repurchases of common shares ( Note 4 )
Shared-based compensation
3 unchanged sentences
Balance at beginning of period
−Removed: Net earnings (loss)
Dividends on common shares
−Removed: Adjustments related to accounting pronouncements and other
Balance at end of period
11 unchanged sentences
REVENUE RECOGNITION
−Removed: NET EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES
+Added: NET EARNINGS PER SHARE
VARIABLE INTEREST ENTITIES
−Removed: PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
+Added: PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS
ACCRUED LIABILITIES
4 unchanged sentences
SHARE-BASED COMPENSATION
−Removed: PRODUCT REMEDIATION RECOVERIES
TIMBERLAND ACQUISITIONS AND DIVESTITURES
OTHER OPERATING COSTS, NET
−Removed: RESTRICTED CASH
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
−Removed: FOR THE QUARTERS AND YEAR-TO-DATE PERIODS ENDED SEPTEMBER 30, 2020 AND 2019
+Added: FOR THE QUARTERS ENDED MARCH 31, 2021 AND 2020
BASIS OF PRESENTATION
16 unchanged sentences
Timberlands – Logs, timber, recreational leases and other products;
−Removed: Real Estate & ENR – Real Estate (sales of timberlands) and ENR (rights to explore for and extract hard minerals, construction materials, oil and gas production, wind and solar) and
+Added: Real Estate, Energy and Natural Resources (Real Estate & ENR) – Real Estate (sales of timberlands) and ENR (rights to explore for and extract hard minerals, construction materials, natural gas, and wind and solar resources) and
Wood Products – Structural lumber, oriented strand board, engineered wood products and building materials distribution.
1 unchanged sentence
QUARTER ENDED
−Removed: YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
Sales to unaffiliated customers:
9 unchanged sentences
Interest expense, net of capitalized interest
−Removed: Earnings (loss) before income taxes
−Removed: Net earnings (loss)
+Added: Earnings before income taxes
Unallocated items are gains or charges not related to, or allocated to, an individual operating segment.
−Removed: They include all or a portion of items such as share-based compensation, pension and postretirement costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.
+Added: They include all or a portion of items such as share-based compensation, pension and post-employment costs, elimination of intersegment profit in inventory and LIFO, foreign exchange transaction gains and losses, interest income and other as well as legacy obligations.
REVENUE RECOGNITION
1 unchanged sentence
QUARTER ENDED
−Removed: YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
Net sales to unaffiliated customers:
21 unchanged sentences
Total net sales
−Removed: In November 2019, we sold our Michigan timberlands and in March 2020, we sold our Montana timberlands.
Other Timberlands sales include sales of seeds and seedlings from our nursery operations as well as wood chips.
Other Wood Products sales include wood chips, other byproducts and third-party residual log sales from our Canadian Forestlands operations.
−Removed: NET EARNINGS (LOSS) PER SHARE AND SHARE REPURCHASES
−Removed: Our basic and diluted earnings (loss) per share were:
−Removed: $ 0.38 during third quarter 2020 and $ 0.68 during year-to-date 2020;
−Removed: $ 0.13 during third quarter 2019 and $( 0.08 ) during year-to-date 2019.
−Removed: Basic earnings (loss) per share is net earnings (loss) divided by the weighted average number of our outstanding common shares, including stock equivalent units where there is no circumstance under which those shares would not be issued.
−Removed: Diluted earnings (loss) per share is net earnings (loss) divided by the sum of the weighted average number of our outstanding common shares and the effect of our outstanding dilutive potential common shares.
+Added: NET EARNINGS PER SHARE
+Added: Our basic and diluted earnings per share were:
+Added: $ 0.91 during first quarter 2021 and
+Added: $ 0.20 during first quarter 2020.
+Added: Basic earnings per share is net earnings divided by the weighted average number of our outstanding common shares, including stock equivalent units where there is no circumstance under which those shares would not be issued.
+Added: Diluted earnings per share is net earnings divided by the sum of the weighted average number of our outstanding common shares and the effect of our outstanding dilutive potential common shares.
QUARTER ENDED
−Removed: YEAR-TO-DATE ENDED
SHARES IN THOUSANDS
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
Weighted average common shares outstanding – basic
6 unchanged sentences
We use the treasury stock method to calculate the dilutive effect of our outstanding stock options, restricted stock units and performance share units.
−Removed: Potential Shares Not Included in the Computation of Diluted Earnings (Loss) per Share
−Removed: The following shares were not included in the computation of diluted earnings (loss) per share because they were either antidilutive or the required performance or market conditions were not met.
+Added: Potential Shares Not Included in the Computation of Diluted Earnings per Share
+Added: The following shares were not included in the computation of diluted earnings per share because they were either antidilutive or the required performance or market conditions were not met.
Some or all of these shares may be dilutive potential common shares in future periods.
QUARTER ENDED
−Removed: YEAR-TO-DATE ENDED
SHARES IN THOUSANDS
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
Stock options
−Removed: Restricted stock units
Performance share units
−Removed: Share Repurchase Program
−Removed: On February 7, 2019, our board of directors approved and announced a new share repurchase program (the 2019 Repurchase Program) under which we are authorized to repurchase up to $ 500 million of outstanding shares.
−Removed: Concurrently, the board terminated the remaining repurchase authorization under the share repurchase program approved by the board in November 2015.
−Removed: During year-to-date 2020, we did no t repurchase shares.
−Removed: During year-to-date 2019, we repurchased over 2.3 million common shares for approximately $ 60 million under the 2019 Repurchase Program.
−Removed: As of September 30, 2020, we had remaining authorization of approximately $ 440 million for future share repurchases.
−Removed: All common stock repurchases under the 2019 Repurchase Program were made in open-market transactions.
Inventories include raw materials, work-in-process, finished goods, as well as materials and supplies.
DOLLAR AMOUNTS IN MILLIONS
−Removed: SEPTEMBER 30,
LIFO inventories:
6 unchanged sentences
LIFO – the last-in, first-out method – applies to major inventory products held at our U.S.
−Removed: The moving average cost method or FIFO – the first-in, first-out method – apply to the balance of our U.S.
+Added: The moving average cost method or FIFO – the first-in, first-out method – applies to the balance of our U.S.
raw material and product inventories, all material and supply inventories and all foreign inventories.
3 unchanged sentences
We were the primary beneficiary and consolidated the assets and liabilities of the SPEs involved in these transactions.
−Removed: The assets of the buyer-sponsored SPEs were financial investments which consist ed of bank guarantees.
+Added: The assets of the buyer-sponsored SPEs were financial investments which consisted of bank guarantees.
These bank guarantees were in turn backed by bank notes, which were the liabilities of the monetization SPEs.
2 unchanged sentences
The corresponding $ 302 million in liabilities of this SPE was paid in third quarter 2019.
−Removed: During first quarter 2019, we received $ 253 million in proceeds from a buyer-sponsored SPE at maturity.
−Removed: The corresponding $ 209 million in liabilities of this SPE was paid in fourth quarter 2018.
−Removed: PENSION AND OTHER POSTRETIREMENT BENEFIT PLANS
+Added: PENSION AND OTHER POST-EMPLOYMENT BENEFIT PLANS
The components of net periodic benefit cost are:
QUARTER ENDED
−Removed: YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
Interest cost
2 unchanged sentences
Amortization of prior service cost
−Removed: Settlement charge
Total net periodic benefit cost - pension
−Removed: OTHER POSTRETIREMENT BENEFITS
+Added: OTHER POST-EMPLOYMENT BENEFITS
QUARTER ENDED
−Removed: YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
Interest cost
1 unchanged sentence
Amortization of prior service credit
−Removed: Total net periodic benefit cost - other postretirement benefits
−Removed: For the periods presented, service cost is included in “Costs of sales,” “Selling expenses,” and “General and administrative expenses” with the remaining components included in “Non-operating pension and other postretirement benefit costs” in the Consolidated Statement of Operations .
−Removed: Actions to Reduce Pension Plan Obligations
−Removed: As a part of our continued efforts to reduce pension plan obligations, we transferred approximately $ 1.5 billion of U.S.
−Removed: qualified pension plan assets and liabilities to an insurance company through the purchase of a group annuity contract in January 2019.
−Removed: In connection with this transaction, we recorded a preliminary noncash pretax settlement charge of $ 455 million during first quarter 2019, accelerating the recognition of previously unrecognized losses in “Accumulated other comprehensive loss”, that would have been recognized in subsequent periods.
−Removed: In second quarter 2019, we finalized the prior year-end fair value of pension plan assets and obligations, which reduced the settlement charge by $ 6 million for a final settlement charge of $ 449 million.
−Removed: Fair Value of Pension Plan Assets and Obligations
−Removed: In our year-end reporting process, we estimate the fair value of pension plan assets based upon the information available at that time.
−Removed: For certain assets, primarily private equity funds, the information available consists of net asset values as of an interim date, cash flows between the interim date and the end of the year and market events.
−Removed: We update the year-end estimated fair value of pension plan assets in the second quarter of each year to incorporate final net asset values reflected in financial statements received after we have filed our Annual Report on Form 10-K.
−Removed: During second quarter 2020, we recorded an increase to the beginning of the year fair value of the pension assets of $ 25 million, or less than 1 percent.
−Removed: We also updated our census data that is used to estimate our beginning of the year projected benefit obligation for our pension plans, which resulted in a projected benefit obligation increase of $ 11 million, or less than 1 percent.
−Removed: The net effect of these updates was a $ 14 million improvement in funded status as of December 31, 2019.
−Removed: This change in funded status was reflected on our second quarter 2020 Consolidated Balance Sheet .
+Added: Total net periodic benefit cost - other post-employment benefits
+Added: For the periods presented, service cost is included in “Costs of sales,” “Selling expenses,” and “General and administrative expenses” with the remaining components included in “Non-operating pension and other post-employment benefit costs” in the Consolidated Statement of Operations .
ACCRUED LIABILITIES
1 unchanged sentence
DOLLAR AMOUNTS IN MILLIONS
−Removed: SEPTEMBER 30,
Compensation and employee benefit costs
3 unchanged sentences
LONG-TERM DEBT AND LINE OF CREDIT
−Removed: In October 2020, we notified holders of our outstanding 4.625 percent notes due in September 2023 that we will redeem the entire aggregate principal amount outstanding in December 2020 .
−Removed: The amount of principal outstanding and the book value of the debt were approximately $ 500 million and $ 498 million, respectively, as of September 30, 2020.
−Removed: The total redemption price of the notes is expected to be approximately $ 560 million which reflects the make-whole premium due on early redemption.
−Removed: In September 2020, we redeemed our $ 325 million 3.25 percent notes due in March 2023 .
−Removed: A pretax charge of $ 23 million was included in “Interest expense, net of capitalized interest” in the Consolidated Statement of Operations in third quarter 2020 for the make-whole premium in connection with the early extinguishment of the $325 million notes.
In March 2020, we issued $ 750 million of 4.00 percent notes due in April 2030 .
The net proceeds after deducting the discount, underwriting fees and issuance costs were $ 732 million.
−Removed: In May 2020, a portion of the net proceeds was used to redeem our $ 569 million 4.70 percent notes due in March 2021 .
−Removed: A net pretax charge of $ 11 million was included in “Interest expense, net of capitalized interest” in the Consolidated Statement of Operations in second quarter 2020 for the make-whole premium in connection with the early extinguishment of the $569 million notes, partially offset by the write-off of an unamortized fair value step-up adjustment.
−Removed: In February 2019, we issued $ 750 million of 4.00 percent notes due in November 2029 .
−Removed: The net proceeds after deducting the discount, underwriting fees and issuance costs were $ 739 million.
−Removed: In March 2019, a portion of the net proceeds was used to redeem our $ 500 million 7.38 percent notes due in October 2019 .
−Removed: A pretax charge of $ 12 million was included in "Interest expense, net of capitalized interest" in the Consolidated Statement of Operations in first quarter 2019 for the make-whole premium, unamortized debt issuance costs and unamortized debt discounts in connection with the early extinguishment of the $500 million notes.
−Removed: In January 2020, we refinanced and extended our $ 1.5 billion five-year senior unsecured revolving credit facility, which now expires in January 2025 .
+Added: In January 2020, we refinanced and extended our $ 1.5 billion five-year senior unsecured revolving credit facility, which expires in January 2025 .
Borrowings are at LIBOR plus a spread or at other interest rates mutually agreed upon between the borrower and the lending banks.
−Removed: We had no outstanding borrowings on our credit facility as of September 30, 2020.
−Removed: As of December 31, 2019, we had $ 230 million of outstanding borrowings on our credit facility.
+Added: We had no outstanding borrowings on our credit facility as of March 31, 2021 and December 31, 2020.
FAIR VALUE OF FINANCIAL INSTRUMENTS
The estimated fair values and carrying values of our long-term debt and line of credit consisted of the following:
−Removed: SEPTEMBER 30,
DOLLAR AMOUNTS IN MILLIONS
11 unchanged sentences
We are party to various legal proceedings arising in the ordinary course of business.
−Removed: We are not currently a party to any legal proceeding that management believes could have a material adverse effect on our Consolidated Balance Sheet , Consolidated Statement of Operations or Consolidated Statement of Cash Flows .
+Added: We are not currently a party to any legal proceeding that management believes could have a material adverse effect on our Consolidated Statement of Operations , Consolidated Balance Sheet or Consolidated Statement of Cash Flows .
Environmental Matters
3 unchanged sentences
have been notified that we may be a potentially responsible party related to the cleanup of other hazardous waste sites for which proceedings have not yet been initiated.
−Removed: As of September 30, 2020, our total accrual for future estimated remediation costs on active Superfund sites and other sites for which we are potentially responsible was approximately $ 58 million.
+Added: As of March 31, 2021, our total accrual for future estimated remediation costs on active Superfund sites and other sites for which we are potentially responsible was approximately $ 58 million.
These amounts are recorded in "Accrued liabilities" and "Other liabilities" on our Consolidated Balance Sheet .
−Removed: Asset Retirement Obligations
−Removed: We have obligations associated with the retirement of tangible long-lived assets consisting primarily of reforestation obligations related to forest management licenses in Canada and obligations to close and cap landfills.
−Removed: Some of our sites have asbestos containing materials.
−Removed: We have met our current legal obligation to identify and manage these materials.
−Removed: In situations where we cannot reasonably determine when asbestos containing materials might be removed from the sites, we have not recorded an accrual because the fair value of the obligation cannot be reasonably estimated.
−Removed: As of September 30, 2020, we had an asset retirement obligation reserve of $ 30 million.
−Removed: These obligations are recorded in "Accrued liabilities" and "Other liabilities" on our Consolidated Balance Sheet .
ACCUMULATED OTHER COMPREHENSIVE LOSS
1 unchanged sentence
QUARTER ENDED
−Removed: YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
Balance at beginning of period
3 unchanged sentences
Balance at end of period
−Removed: Other Postretirement Benefits (1)
+Added: Other Post-Employment Benefits (1)
Balance at beginning of period
−Removed: Other comprehensive income before reclassifications
Amounts reclassified from accumulated other comprehensive loss to earnings (2)
9 unchanged sentences
Amounts of actuarial loss and prior service (cost) credit are components of net periodic benefit cost (credit).
−Removed: Pension and Other Postretirement Benefit Plans .
+Added: Pension and Other Post-Employment Benefit Plans .
SHARE-BASED COMPENSATION
−Removed: Share-based compensation activity during year-to-date 2020 included the following:
+Added: Share-based compensation activity during first quarter 2021 included the following:
SHARES IN THOUSANDS
7 unchanged sentences
The weighted average grant date fair value of PSUs granted in 2021 was $ 38.50 .
−Removed: The final number of shares granted in 2020 will range from 0 percent to 150 percent of each grant's target, depending upon actual company performance compared against an industry peer group.
−Removed: For prior year grants, company performance is measured against an industry peer group and the S&P 500.
−Removed: Beginning with PSUs granted in 2020, PSUs will vest at a maximum of 100 percent of target value in the event of negative absolute company total shareholder return.
+Added: The final number of shares granted in 2021 will vest between a range of 0 percent to 150 percent of each grant's target, depending upon actual company performance compared against an industry peer group.
+Added: PSUs granted in 2021 will vest at a maximum of 100 percent of target value in the event of negative absolute company total shareholder return.
Weighted Average Assumptions Used in Estimating the Value of Performance Share Units Granted in 2021
9 unchanged sentences
Calculated as an average of the high and low prices on grant date.
−Removed: PRODUCT REMEDIATION RECOVERIES
−Removed: In July 2017, we announced we were implementing a solution to address concerns regarding our TJI® Joists coated with our former Flak Jacket® Protection product.
−Removed: This issue was isolated to Flak Jacket product manufactured after December 1, 2016 and did not affect any of our other products.
−Removed: In third quarter 2019 and second quarter 2020, we received and recorded insurance recoveries of $ 68 million and $ 8 million, respectively, related to prior remediation efforts.
−Removed: These recoveries are attributable to our Wood Products segment and were recorded in "Product remediation recoveries" in the Consolidated Statement of Operations .
TIMBERLAND ACQUISITIONS AND DIVESTITURES
−Removed: Oregon Acquisition and Divestiture
−Removed: On September 1, 2020, we announced an agreement to sell 149,000 acres of southern Oregon timberlands for $ 385 million and a separate agreement to purchase 85,000 acres of mid-coastal Oregon timberlands for $ 426 million.
−Removed: These transactions within our Timberlands business segment will be structured as a like-kind exchange for tax purposes.
−Removed: The two agreements are subject to customary closing conditions and are both expected to close in fourth quarter 2020.
−Removed: The sale of southern Oregon timberlands is not considered a strategic shift that has, or will have, a major effect on our operations or financial results and therefore does not meet the requirements for presentation as discontinued operations.
−Removed: However, the related assets have met the relevant criteria to be classified as held for sale in the current period Consolidated Balance Sheet .
−Removed: This classification does not affect the presentation in the Consolidated Statement of Operations .
−Removed: The held for sale classification did change the presentation of the related assets from long-term to current on our Consolidated Balance Sheet .
−Removed: As of September 30, 2020, “Assets held for sale” had a balance of $ 199 million, which consisted primarily of timberlands and other related assets.
+Added: Washington Divestiture
+Added: On April 30, 2021, we announced an agreement to sell 145,000 acres of timberlands in the North Cascades region of Washington for $ 266 million in cash.
+Added: This agreement is subject to customary closing conditions and is expected to close in third quarter 2021.
+Added: Alabama Acquisition
+Added: On February 25, 2021, we announced an agreement to purchase 69,200 acres of southwest Alabama timberlands for approximately $ 149 million.
+Added: We completed the purchase on April 27, 2021.
Montana Divestiture
6 unchanged sentences
QUARTER ENDED
−Removed: YEAR-TO-DATE ENDED
DOLLAR AMOUNTS IN MILLIONS
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: SEPTEMBER 2020
−Removed: SEPTEMBER 2019
−Removed: Foreign exchange losses (gains), net
−Removed: Litigation expense, net
+Added: Foreign exchange losses, net
+Added: Litigation expense (income), net
Research and development expenses
−Removed: Timber casualty loss
Total other operating costs, net
−Removed: Timber Casualty Loss
−Removed: In September 2020, forest fires in the state of Oregon, commonly referred to as the Holiday Farm, Beachie Creek, Riverside, and Archie Creek fires, spread from adjacent lands onto portions of our Oregon timberland properties.
−Removed: Based on interpretation of satellite imagery and aerial photography, we estimate that the fires have had some impact on approximately 125,000 acres of our Oregon timberlands.
−Removed: Our initial assessments indicate that the extent of damage varies from tract to tract based on topographical conditions, rate of fire spread, age of the timber and other circumstances.
−Removed: Based on these initial assessments, we expect that the majority of merchantable timber, even if affected by the fires, is likely salvageable if we are able to harvest it within a reasonable period of time.
−Removed: We anticipate that the majority of pre-merchantable timber affected by the fires will not be able to be salvaged.
−Removed: For the quarter ended September 30, 2020, we have recorded a timber casualty loss of $ 80 million which represents the estimated book value of timber and related assets that cannot be salvaged based on the information available at this time.
−Removed: The loss is attributable to our Timberlands segment and is recorded within “Other operating costs, net” in the Consolidated Statement of Operations .
−Removed: As salvage efforts continue and as we are able to complete on-site assessments of timber within the fire perimeter, it is reasonably possible that this estimate could increase by as much as $ 30 million to $ 40 million.
As a real estate investment trust (REIT), we generally are not subject to federal corporate income taxes on REIT taxable income that is distributed to shareholders.
2 unchanged sentences
Our 2021 estimated annual effective tax rate, excluding discrete items, differs from the U.S.
−Removed: federal statutory tax rate of 21 percent primarily due to tax benefits associated with our nontaxable REIT earnings and the projected mix of earnings between our REIT and our TRSs.
−Removed: In July 2020, the Internal Revenue Service released final regulations which resolved uncertainties related to the deductible portion of our interest expense under the Tax Cuts and Jobs Act of 2017.
−Removed: Previously unrecognized tax benefits associated with this position were recognized in third quarter 2020, which favorably impacted our receivables for taxes and did not impact our effective tax rate.
−Removed: RESTRICTED CASH
−Removed: The following table provides a reconciliation of cash, cash equivalents and restricted cash reported on our Consolidated Balance Sheet that sum to the total of the amounts shown in the Consolidated Statement of Cash Flows :
−Removed: DOLLAR AMOUNTS IN MILLIONS
−Removed: SEPTEMBER 30,
−Removed: SEPTEMBER 30,
−Removed: Cash and cash equivalents
−Removed: Restricted cash included in other assets (1)
−Removed: Total cash, cash equivalents and restricted cash
−Removed: Amounts included in restricted cash are primarily comprised of proceeds held by a qualified intermediary that are intended to be reinvested in timber and timberlands through a like-kind exchange transaction, as well as additional funds held in escrow related to this transaction.
+Added: federal statutory tax rate of 21 percent primarily due to state and foreign income taxes and tax benefits associated with our nontaxable REIT earnings.
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.