What changed in this filing

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Item 1. Financial Statements

2022-07-29 compared with 2022-04-29 · 43 added, 24 removed, 372 unchanged (15% of the section changed)

3 unchanged sentences

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DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES

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DOLLAR AMOUNTS IN MILLIONS

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Changes in unamortized actuarial loss, net of tax expense of $ 24 , $ 38 , $ 29 and $ 45

Changes in unamortized net prior service credit, net of tax (expense) benefit of ($ 1 ) and $ 1

Changes in unamortized net prior service credit, net of tax expense of $ 0 , $ 1 , $ 1 and $ 0

Total other comprehensive income

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issued and outstanding:

745,442 thousand shares at March 31, 2022 and 747,301 thousand shares at December 31, 2021

741,738 thousand shares at June 30, 2022 and 747,301 thousand shares at December 31, 2021

Other capital

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CONSOLIDATED STATEMENT OF CASH FLOWS

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DOLLAR AMOUNTS IN MILLIONS

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Share-based compensation expense ( Note 12 )

Loss on debt extinguishment

Loss on debt extinguishment ( Note 8 )

Receivables, net

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Capital expenditures for timberlands reforestation

Acquisition of timberlands

Acquisition of timberlands ( Note 16 )

Net cash from investing activities

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DOLLAR AMOUNTS IN MILLIONS, EXCEPT PER-SHARE FIGURES

37 unchanged sentences

RESTRICTED CASH

TIMBERLAND ACQUISITION

TIMBERLAND ACQUISITIONS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

FOR THE QUARTERS ENDED MARCH 31, 2022 AND 2021

FOR THE QUARTERS AND YEAR-TO-DATE PERIODS ENDED JUNE 30, 2022 AND 2021

BASIS OF PRESENTATION

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DOLLAR AMOUNTS IN MILLIONS

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Our basic and diluted earnings per share were:

$ 1.03 during first quarter 2022 and

$ 0.91 during first quarter 2021.

$ 1.06 during second quarter 2022 and $ 2.09 during year-to-date 2022;

$ 1.37 during second quarter 2021 and $ 2.28 during year-to date 2021.

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.

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SHARES IN THOUSANDS

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SHARES IN THOUSANDS

Stock options

Performance share units

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Concurrently, the board terminated the remaining repurchase authorization under the share repurchase program approved by the board in February 2019 (the 2019 Repurchase Program).

During first quarter 2022, we repurchased 3,197,675 common shares for approximately $ 121 million under the 2021 Repurchase Program.

As of March 31, 2022, we had remaining authorization of $ 806 million for future share repurchases.

We did no t repurchase shares during first quarter 2021.

We repurchased 3,784,787 common shares for approximately $ 138 million under the 2021 Repurchase Program during second quarter 2022 and 6,982,462 common shares for approximately $ 259 million under the 2021 Repurchase Program during year-to-date 2022.

As of June 30, 2022, we had remaining authorization of $ 668 million for future share repurchases.

We did no t repurchase shares during year-to-date 2021.

All common stock repurchases under the 2021 Repurchase Program were made in open-market transactions.

1 unchanged sentence

We record a liability for repurchases that have not yet been settled as of period end.

There were 78,380 unsettled shares (approximately $ 3 million) as of March 31, 2022 and no unsettled shares as of December 31, 2021.

Inventories include raw materials, work-in-process, finished goods, as well as materials and supplies.

There were no unsettled repurchases as of June 30, 2022, or December 31, 2021.

Inventories include raw materials, work-in-process and finished goods, as well as materials and supplies.

DOLLAR AMOUNTS IN MILLIONS

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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.

During second quarter 2022, we recorded an increase to the beginning of the year fair value of the pension assets of $ 54 million, or 2 percent.

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 decrease of $ 13 million, or less than 1 percent.

The net effect of these updates was a $ 67 million improvement in funded status.

This change in funded status was reflected on our Consolidated Balance Sheet as of June 30, 2022.

ACCRUED LIABILITIES

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We paid holders an aggregate $ 1.2 billion in cash reflecting principal, premium to par and tender premium.

A net pretax charge of $ 276 million ($ 207 million after-tax) was included in the Consolidated Statement of Operations in first quarter 2022 for premiums to retire $ 931 million of principal plus unamortized debt issuance costs and unamortized debt discounts in connection with the early debt retirement.

A net pretax charge of $ 276 million ($ 207

million after-tax) was included in the Consolidated Statement of Operations in first quarter 2022 for premiums to retire $ 931 million of principal plus unamortized debt issuance costs and unamortized debt discounts in connection with the early debt retirement .

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.

We had no outstanding borrowings on our credit facility as of March 31, 2022 and December 31, 2021.

We had no outstanding borrowings on our credit facility as of June 30, 2022 and December 31, 2021.

FAIR VALUE OF FINANCIAL INSTRUMENTS

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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.

As of March 31, 2022, our total accrual for future estimated remediation costs on active Superfund sites and other sites for which we are potentially responsible was approximately $ 62 million.

As of June 30, 2022, our total accrual for future estimated remediation costs on active Superfund sites and other sites for which we are potentially responsible was approximately $ 62 million.

These amounts are recorded in "Accrued liabilities" and "Other liabilities" on our Consolidated Balance Sheet .

2 unchanged sentences

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DOLLAR AMOUNTS IN MILLIONS

Balance at beginning of period

Other comprehensive income (loss) before reclassifications

Other comprehensive income before reclassifications

Amounts reclassified from accumulated other comprehensive loss to earnings ( 2)

3 unchanged sentences

Balance at beginning of period

Other comprehensive income (loss) before reclassifications

Other comprehensive loss before reclassifications

Amounts reclassified from accumulated other comprehensive loss to earnings ( 2)

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Translation adjustments

Total other comprehensive income

Total other comprehensive income (loss)

Balance at end of period

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SHARE-BASED COMPENSATION

Share-based compensation activity during first quarter 2022 included the following:

Share-based compensation activity during year-to-date 2022 included the following:

SHARES IN THOUSANDS

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DOLLAR AMOUNTS IN MILLIONS

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Restricted cash included in other assets ( 1)

Restricted cash included in prepaid expenses and other current assets

Total cash, cash equivalents and restricted cash

1 unchanged sentence

In first quarter 2022, the proceeds were released as a like-kind property was not identified.

TIMBERLAND ACQUISITION

TIMBERLAND ACQUISITIONS

On April 14, 2022, we announced an agreement to purchase 81 thousand acres of North and South Carolina timberlands for approximately $ 265 million.

The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2022.

We completed the purchase on May 18, 2022 and recorded $ 263 million of timberland assets in “Timber and timberlands at cost, less depletion” and $ 2 million of related assets in “Property and equipment, net” on our Consolidated Balance Sheet .

On February 25, 2021, we announced an agreement to purchase 69 thousand acres of southwest Alabama timberlands for approximately $ 149 million.

We completed the purchase on April 27, 2021 and recorded $ 148 million of timberland assets in “Timber and timberlands at cost, less depletion” and $ 1 million of related assets in “Property and equipment, net” on our Consolidated Balance Sheet .

This transaction was structured as a like-kind exchange.

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