OTHER OPERATING CREDITS AND CHARGES, NET

The major components of “Other operating credits and charges, net” in the Consolidated Statements of Income for the third quarter and nine months ended September 30, 2013 and September 30, 2012 are reflected in the table below and are described in the paragraphs following the table:



	Quarter Ended September 30,						Nine Months Ended September 30,
Dollar amounts in millions	2013			2012			2013			2012
Other operating charges and credits net:
Adjustment related to prior year inventory	$	—		$	—		$	(1.6	)	$	—
Adjustment related to prior year depreciation	—			—			(1.5		)	—
Construction related legal reserve	—			—			—			0.5
Addition to warranty reserves	(2.0		)	(1.0		)	(6.1		)	(1.0		)
Refundable value added tax receivable	1.4			—			1.4			—
Insurance recovery	0.4			—			0.4			—
Contingent consideration fair value adjustment	17.3			—			17.3			—
Addition to workers compensation reserves	(1.0		)	—			(1.0		)	—
Other	—			(0.2		)	0.2			(0.7		)
	$	16.1		$	(1.2	)	$	9.1		$	(1.2	)
Other operating charges and credits associated with unconsolidated affiliates:
Valuation allowance associated with deferred taxes	$	—		$	—		$	(1.8	)	$	—
Addition to contingency reserves	—			—			(0.9		)	—
	$	—		$	—		$	(2.7	)	$	—

During the third quarter of 2013, LP recorded a gain of $0.4 million related to proceeds received from an insurance claim associated with an OSB mill and a reduction in the fair value of $17.3 million payable in relation to the contingent consideration associated with a business combination (as discussed in Note 19). LP also recorded a loss of $1.0 million associated with a workers compensation reserve adjustment. LP recorded a loss of $2.0 million during the quarter related to an increase in product related warranty reserves associated with CanExel products sold in certain geographic areas from 2004 through 2008. During the third quarter of 2013, LP recorded a receivable of $1.4 million related to value added taxes.

During the second quarter of 2013, LP recorded a loss of $1.5 million related to a correction of prior years depreciation amounts associated with LP's South American operations. During the second quarter of 2013, LP recorded a loss of $4.1 million related to an increase in product related warranty reserves associated with Canexel products sold in certain geographic areas from 2004 to 2008. Additionally, other operating charges and credits reflected in Equity in (income) loss from unconsolidated affiliates includes a charge of $1.8 million associated with a valuation allowance on the joint venture's books associated with deferred tax assets as well as a loss of $0.9 million associated with the recording of a contingent liability from past years.

During the first quarter of 2013, LP recorded a loss of $1.6 million related to a prior year inventory adjustment.

During the third quarter 2012, LP recorded a loss of $1.0 million related to an increase in product related warranty reserves associated with Canexel products sold in Europe in prior years.

LP recorded losses of $0.2 million and $0.7 million during the third quarter and first nine months of 2012 associated with severance related to an indefinitely curtailed OSB mill in British Columbia.