Company: LPX
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000060519-25-000005
Chunk: 88

Company: LOUISIANA-PACIFIC CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 88
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 of approximately $118 million within Income from discontinued operations, net of income taxes in the Consolidated Statements of Income. Upon closing, the Company entered into a transition services agreement, pursuant to which the Company agreed to support the various activities of the EWP segment, which concluded during the year ended December 31, 2023.The Company has classified the results of its EWP segment as discontinued operations in its Consolidated Statements of Income for the prior periods presented. 

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The following table presents the financial results of the EWP segment (dollars in millions):  December 31, 20221Net sales$455 Cost of sales(355)Gross profit101 Selling, general, and administrative expenses(10)Other operating credits and charges, net— Income from operations of discontinued operations91 Other non-operating items— Gain on disposal before income taxes158 Income from discontinued operations before income taxes249 Provision for income taxes(51)Income from discontinued operations, net of income taxes$198 1 Reflects operating results through August 1, 2022, when the assets related to the EWP segment were sold.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 Consolidated Statements of Cash Flows (dollars in millions):2022Net cash provided by discontinued operating activities$16 Net cash provided by (used in) discontinued investing activities$261 Net cash provided by discontinued investing activities for the year ended December 31, 2022, included $59 million of proceeds from the sale of our 50% equity interest in two joint ventures that produced I-joists and $205 million of net proceeds from the sale of the EWP segment assets. Capital expenditures for discontinued operations totaled $3 million for the year ended December 31, 2022. Included in net cash provided by discontinued operating activities is depreciation and amortization of $3 million for the year ended December 31, 2022.

7.     BUSINESS EXIT CREDITS AND CHARGES

During the second quarter of 2023, we ceased the manufacturing operations of Entekra, an off-site framing operation previously reported within our “Other” category, which comprises other products that are not individually significant. During 2024, the equity method investment held by Entekra sold substantially all of its net assets resulting in a $16 million distribution to LP and a gain of