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Discontinued Operations
 6 Months Ended
Jun. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations DISCONTINUED 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. 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.
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.
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. 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,
 2022202120222021
Net sales$218 $158 $388 $280 
Cost of sales(171)(136)(299)(248)
Gross profit48 22 89 33 
Selling, general, and administrative expenses(6)(4)(9)(9)
Income from operations of discontinued operations42 18 80 25 
Other non-operating items— (3)— (5)
Gain on disposal before income taxes— — 39 — 
Income from discontinued operations before income taxes42 15 119 19 
Provision for income taxes(5)(4)(20)(5)
Income from discontinued operations, net of income taxes$37 $11 $99 $14 
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,
20222021
Net cash provided by discontinued operating activities$46 $4 
Net cash provided by (used in) discontinued investing activities$56 $(3)
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.
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, 2022December 31, 2021
Carrying amounts of assets included as part of discontinued operations:
Accounts receivable, net$36 $22 
Inventories54 46 
Timber and timberlands27 42 
Property, plant, and equipment, net30 30 
Operating lease assets1 1 
Investments in and advances to affiliates— 14 
Total assets classified as discontinued operations in the condensed consolidated balance sheet$148 $156 
Carrying amounts of liabilities included as part of discontinued operations:
Accounts payable and accrued liabilities$42 $34 
Other liabilities27  42 
Total liabilities classified as discontinued operations in the condensed consolidated balance sheet$69 $76