Divestitures

6 Months Ended

Jun. 30, 2020

Discontinued Operations and Disposal Groups [Abstract]

Assets Held For Sale

February 2020, the Company entered into a joint agreement with Maibec, Inc. (Maibec) to sell LP’s East River facility located in Nova Scotia, Canada, as well as the assets and brand rights for CanExel®, the fiber-based prefinished siding product manufactured at that facility. In June 2020, we completed the sale to Maibec for a total purchase price of $16 million, $14 million of which was paid in cash at closing and $2 million of which is payable under a promissory note due in three equal annual installments beginning in June 2021. The current portion is included in prepaid and other current assets and the long-term portion is included in other assets within the Condensed Consolidated Balance Sheet. We recognized a gain on sale of $2 million for the three month period ended June 30, 2020, within other operating credits and charges, net in the Condensed Consolidated Statements of Income.

The total net carrying value of assets related to the East River facility and CanExel® at the date of sale was $14 million, consisting primarily of $10 million and $5 million of inventories and property, plant, and equipment, respectively.

The Condensed Consolidated Statements of Income for the three and six months ended June 30, 2020, include net sales of $3 million and $14 million, respectively, related to the divested East River facility and assets and brand rights for CanExel®. The Condensed Consolidated Statements of Income for three and six months ended June 30, 2019, include net sales of $7 million and $24 million, respectively, related to the East River facility.