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Discontinued Operations
 9 Months Ended
Sep. 30, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations CONTINUED OPERATIONS
Engineered Wood Products (EWP)
On August 1, 2022, the Company completed the sale of the assets related to the EWP segment to the Purchaser. As a result of the sale, the Company received $217 million in gross cash proceeds after taking into account working capital adjustments (including $3 million received subsequent to September 30, 2022). The Company paid $12 million in direct transaction costs, resulting in net proceeds of $205 million. The net carrying value of the EWP assets at the time of sale was $87 million, which resulted in a pre-tax gain of approximately $118 million within Income from discontinued operations in the Condensed Consolidated Statements of Income.
Upon closing, the Company entered into the TSA 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. During the three months ended September 30, 2022, the Company collected $33 million on the Purchaser's behalf pursuant to the TSA. As of September 30, 2022, the Company has $14 million due to the Purchaser, which is included in the Condensed Consolidated Balance Sheets.
The Company has classified the results of its EWP segment as discontinued operations in its Condensed Consolidated Statements of Income and we have classified the related assets and liabilities associated with the EWP segment as discontinued operations 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. 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 September 30,Nine Months Ended September 30,
 2022202120222021
Net sales$67 $201 $455 $481 
Cost of sales(54)(156)(352)(403)
Gross profit13 45 103 78 
Selling, general, and administrative expenses(2)(5)(12)(15)
Income from operations of discontinued operations12 40 91 64 
Other non-operating items— 5 — (1)
Gain on disposal before income taxes118 — 158 — 
Income from discontinued operations before income taxes130 44 249 63 
Provision for income taxes(33)(11)(53)(16)
Income from discontinued operations, net of income taxes$97 $33 $196 $47 
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 nine months ended September 30, 2022 and 2021 (in millions):
Nine Months Ended September 30,
20222021
Net cash provided by discontinued operating activities$18 $30 
Net cash provided by (used in) discontinued investing activities$258 $(25)
Net cash provided by discontinued investing activities for the nine months ended September 30, 2022, includes $59 million of proceeds from the sale of our 50% equity interest in two joint ventures that produce I-joists and $202 million of net proceeds from the sale of the EWP segment assets.
The following table presents the aggregate carrying amounts of discontinued operations related to the EWP segment in the Condensed Consolidated Balance Sheets (in millions):
December 31, 2021
Carrying amounts of assets included as part of discontinued operations:
Accounts receivable, net$22 
Inventories46 
Timber and timberlands42 
Property, plant, and equipment, net30 
Operating lease assets1 
Investments in and advances to affiliates14 
Total assets classified as discontinued operations in the Condensed Consolidated Balance Sheet$156 
Carrying amounts of liabilities included as part of discontinued operations:
Accounts payable and accrued liabilities$34 
Other liabilities42 
Total liabilities classified as discontinued operations in the Condensed Consolidated Balance Sheet$76