SECURITIES AND EXCHANGE COMMISSION


Delaware						93-0609074
(State or other jurisdiction of incorporation or organization)						(IRS Employer Identification No.)

~~414 Union Street,~~1610 West End Avenue, Suite ~~2000,~~200, Nashville, TN ~~37219~~37203

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (615) 986 - 5600

Securities registered pursuant to Section 12(b) of the Act:

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	x	Accelerated filer	o
Non-accelerated filer	o	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: ~~95,225,904~~73,872,044 shares of ~~Common Stock,~~common stock, $1 par value, outstanding as of ~~July 30, 2021.~~

Except as otherwise specified and unless the context otherwise requires, references to ~~"LP",~~"LP," the ~~“Company”, “we”, “us”,~~“Company,” “we,” “us,” and “our” refer to Louisiana-Pacific Corporation and its subsidiaries.

~~ABOUT~~CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the Exchange Act), provide a “safe harbor” for forward-looking statements to encourage companies to provide prospective information about their businesses and other matters as long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those discussed in the statements. This quarterly report on Form 10-Q contains, and other reports and documents we file with, or furnish to, the Securities and Exchange Commission (SEC) may contain forward-looking statements. These statements are based upon the beliefs and assumptions of, and on information available to, our management.

The following statements are or may constitute forward-looking statements: (1) statements preceded by, followed by, or that include words like “may,” “will,” “could,” “should,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” ~~"project,"~~“project,” “potential,” “continue,” ~~"likely,"~~“likely,” or “future” or the negative or other variations thereof and (2) other statements regarding matters that are not historical facts, including without limitation, plans for product development, forecasts of future costs and expenditures, possible outcomes of legal proceedings, capacity expansion, and other growth initiatives and the adequacy of reserves for loss contingencies.

Factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include, but are not limited to, the ~~following:~~

following, which may be amplified by the invasion of Ukraine by Russia, the sanctions (including their duration), and other measures being imposed in response to this conflict, as well as any escalation or expansion of economic disruption or the conflict’s current scope:

•impacts from public health issues (including global pandemics, such as the ongoing COVID-19 pandemic) on the economy, demand for our products or our operations, including the actions and recommendations of governmental authorities to contain such public health issues;

•changes in governmental fiscal and monetary policies, including tariffs and levels of employment;

•changes in general economic conditions, including impacts from the ongoing COVID-19 pandemic;

•changes in the cost and availability of capital;

•changes in the level of home construction and repair and remodel activity;

•changes in competitive conditions and prices for our products;

•changes in the relationship between supply of and demand for building products;

•changes in the financial or business conditions of third-party wholesale distributors and dealers;

•changes in the relationship between the supply of and demand for raw materials, including wood fiber and resins, used in manufacturing our products;

•changes in the cost of and availability of energy, primarily natural gas, electricity, and diesel fuel;

•changes in the cost of and availability of transportation;

•impact of manufacturing our products internationally;

•difficulties in the launch or production ramp-up of newly introduced products;

•unplanned interruptions to our manufacturing operations, such as explosions, fires, inclement weather, natural disasters, accidents, equipment failures, labor shortages or disruptions, transportation interruptions, supply interruptions, public health issues (including pandemics and quarantines), riots, civil insurrection or social unrest, looting, protests, strikes, and street demonstrations;

•changes in other significant operating expenses;

•changes in currency values and exchange rates between the U.S. dollar and other currencies, particularly the Canadian dollar, Brazilian real, and Chilean peso;

•changes in, and compliance with, general and industry-specific laws and regulations, including environmental and health and safety laws and regulations, the U.S. Foreign Corrupt Practices Act and anti-bribery laws, laws related to our international business operations, and changes in building codes and standards;

•changes in tax laws and interpretations thereof;

•changes in circumstances giving rise to environmental liabilities or expenditures;

•warranty costs exceeding our warranty reserves;

•~~challenge~~challenges to or exploitation of our intellectual property or other proprietary information by others in the industry;

•changes in the funding requirements of our defined benefit pension plans;

•the resolution of existing and future product-related litigation, environmental proceedings and remediation efforts, and other legal ~~proceedings;~~or environmental proceedings or matters;

•the effect of covenants and events of default contained in our debt instruments;

•the amount and timing of any repurchases of our common stock and the payment of dividends on our common stock, which will depend on market and business conditions and other considerations;

•cybersecurity events affecting our information technology systems or those of our third-party providers and the related costs and impact of any disruption on our business; and

•acts of public authorities, war, civil unrest, natural disasters, fire, floods, earthquakes, inclement weather, and other matters beyond our control.

In addition to the foregoing and any risks and uncertainties specifically identified in the text surrounding forward-looking statements, any statements in the reports and other documents filed by us with the SEC that warn of risks or uncertainties associated with future results, events, or circumstances identify important factors that could cause actual results, events, and circumstances to differ materially from those reflected in the forward-looking statements.

The forward-looking statements that we make or that are made by others on our behalf are based on our knowledge of our business and operating environment and assumptions that we believe to be or will believe to be reasonable when such forward-looking statements are or will be made. As a consequence of the factors described above, the other risks, uncertainties, and factors we disclose below and in the reports and other documents filed by us with the SEC, other risks not known to us at this time, changes in facts, assumptions not being realized or other circumstances, our actual results may differ materially from those discussed in or implied or contemplated by our forward-looking statements. Consequently, this cautionary statement qualifies all forward-looking statements we make or that are made on our behalf, including those made herein and incorporated by reference herein. We cannot assure that the results or developments expected or anticipated by us will be realized or, even if substantially realized, that those results or developments will result in the expected consequences for us or affect us, our business, our operations, or our operating results in the manner or to the extent we expect. We caution readers not to place undue reliance on such forward-looking statements, which speak only as of their dates. We undertake no obligation to revise or update any of the forward-looking statements to reflect subsequent events or circumstances except to the extent required by applicable law.

ABOUT THIRD-PARTY INFORMATION

In this quarterly report on Form 10-Q, we rely on and refer to information regarding industry data obtained from market research, publicly available information, industry publications, U.S. government sources, and other third parties. Although we believe the information is reliable, we cannot guarantee the accuracy or completeness of the information and have not independently verified it.

PART I - FINANCIAL INFORMATION

ITEM 1.FINANCIAL STATEMENTS

Condensed Consolidated Statements of Income

Dollar amounts in millions, except per share amounts

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Net sales $ 1,325 $ 548 $ 2,342 $ 1,133
Cost of sales (619) (431) (1,157) (908)
Gross profit 707 117 1,185 225
Selling, general, and administrative expenses (57) (50) (105) (105)
Loss on impairment 0 (8) 0 (15)
Other operating credits and charges, net 3 (6) 3 (8)
Income from operations 653 53 1,083 97
Interest expense (4) (6) (9) (12)
Investment income 0 4 1 3
Other non-operating items (6) (1) (16) 4
Income before income taxes 644 50 1,059 92
Provision for income taxes (147) (19) (244) (28)
Equity in unconsolidated affiliate 1 0 2 0
Net income $ 497 $ 31 $ 817 $ 64
Net loss attributed to noncontrolling interest 0 2 1 2
Net income attributed to LP $ 498 $ 33 $ 818 $ 66
Basic net income per share of common stock:
Net income per share - basic $ 4.93 $ 0.29 $ 7.90 $ 0.59
Diluted net income per share of common stock:
Net income per share - diluted $ 4.90 $ 0.29 $ 7.85 $ 0.58
Average shares of common stock used to compute net income per share:
Basic 101 112 103 112
Diluted 102 113 104 113


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net sales	$	1,130	$	1,168	$	2,297	$	2,062
Cost of sales	(611)		(483)		(1,158)		(910)
Gross profit	518		684		1,139		1,152
Selling, general, and administrative expenses	(67)		(53)		(129)		(97)

Other operating credits and charges, net	11		3		10		3
Income from operations	462		634		1,019		1,058
Interest expense	(3)		(4)		(6)		(9)
Investment income	2		—		3		1
Other non-operating items	2		(3)		(8)		(11)
Income before income taxes	463		629		1,007		1,040
Provision for income taxes	(116)		(144)		(240)		(239)
Equity in unconsolidated affiliate	1		1		2		2
Income from continuing operations	348		486		769		802
Income from discontinued operations, net of income taxes	37		11		99		14
Net income	$	385	$	497	$	868	$	817
Net loss attributed to noncontrolling interest	—		—		1		1
Net income attributed to LP	$	384	$	498	$	868	$	818





Net income attributed to LP per share of common stock:
Income per share continuing operations - basic	$	4.30	$	4.82	$	9.25	$	7.76
Income per share discontinued operations - basic	0.46		0.11		1.18		0.14
Net income per share - basic	$	4.76	$	4.93	$	10.43	$	7.90

Income per share continuing operations - diluted	$	4.28	$	4.79	$	9.19	$	7.71
Income per share discontinued operations - diluted	0.45		0.11		1.18		0.14
Net income per share - diluted	$	4.73	$	4.90	$	10.36	$	7.85

Average shares of common stock used to compute net income per share:
Basic	81		101		83		103
Diluted	81		102		84		104

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

Condensed Consolidated Statements of Comprehensive Income

Dollar amounts in millions

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Net income $ 497 $ 31 $ 817 $ 64
Other comprehensive income, net of tax
Foreign currency translation adjustments 7 2 0 (21)
Unrealized gains on securities, net of reversals 0 (3) 0 (3)
Amortization of pension and post-retirement prior service costs and net loss 1 1 2 2
Other comprehensive income (loss), net of tax 8 0 2 (22)
Comprehensive income 505 31 819 42
Comprehensive loss associated with noncontrolling interest 0 2 1 2
Comprehensive income attributed to LP $ 506 $ 33 $ 819 $ 44


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net income	$	385	$	497	$	868	$	817
Other comprehensive income, net of tax
Foreign currency translation adjustments	(32)		7		(9)		—

Changes in defined benefit pension plans	1		1		2		2
Other comprehensive income (loss), net of tax	(31)		8		(7)		2
Comprehensive income	354		505		861		819
Comprehensive loss associated with noncontrolling interest	—		—		1		1
Comprehensive income attributed to LP	$	354	$	506	$	862	$	819

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

Condensed Consolidated Balance Sheets

Dollar amounts in millions

June 30, 2021 December 31, 2020
ASSETS
Cash and cash equivalents $ 590 $ 535
Receivables, net of allowance for doubtful accounts of $2 million at June 30, 2021, and December 31, 2020 310 184
Inventories 311 259
Prepaid expenses and other current assets 20 15
Total current assets 1,230 993
Timber and timberlands 64 52
Property, plant, and equipment, net 938 918
Operating lease assets 37 40
Goodwill and other intangible assets 45 46
Investments in and advances to affiliates 10 11
Restricted cash 13 0
Other assets 26 24
Deferred tax asset 4 3
Total assets $ 2,367 $ 2,086
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities $ 315 $ 267
Income tax payable 36 18
Current portion of contingency reserves 1 1
Total current liabilities 353 286
Long-term debt 346 348
Deferred income taxes 88 78
Non-current operating lease liabilities 29 32
Contingency reserves, excluding current portion 13 13
Other long-term liabilities 97 86
Total liabilities 925 842
Redeemable noncontrolling interest 9 10
Stockholders’ equity:
Common stock, $1 par value, 200,000,000 shares authorized; 113,835,024 and 96,973,031 shares issued and outstanding, respectively, as of June 30, 2021; and 123,547,974 and 106,240,030 shares issued and outstanding, respectively, as of December 31, 2020 114 124
Additional paid-in capital 446 452
Retained earnings 1,413 1,206
Treasury stock, 16,861,993 shares and 17,307,944 shares, at cost as of June 30, 2021, and December 31, 2020, respectively (390) (397)
Accumulated comprehensive loss (149) (151)
Total stockholders’ equity 1,433 1,234
Total liabilities and stockholders’ equity $ 2,367 $ 2,086


	June 30, 2022		December 31, 2021
ASSETS
Cash and cash equivalents	$	503	$	358
Receivables, net of allowance for doubtful accounts of $1 million as of June 30, 2022, and December 31, 2021	219		169
Inventories	309		278
Prepaid expenses and other current assets	28		17
Current assets held for sale	148		68
Total current assets	1,208		890

Timber and timberlands	40		42
Property, plant, and equipment, net	1,166		1,039
Operating lease assets	46		50
Goodwill and other intangible assets	37		39
Investments in and advances to affiliates	7		7
Restricted cash	13		13
Other assets	25		25
Deferred tax asset	4		2
Long-term assets held for sale	—		87
Total assets	$	2,547	$	2,194
LIABILITIES AND EQUITY
Accounts payable and accrued liabilities	$	315	$	305
Income tax payable	80		13
Current liabilities held for sale	69		34
Total current liabilities	464		351

Long-term debt	346		346
Deferred income taxes	114		86
Non-current operating lease liabilities	44		44
Contingency reserves, excluding current portion	26		24
Other long-term liabilities	64		63
Long-term liabilities held for sale	—		42
Total liabilities	1,059		955

Redeemable noncontrolling interest	3		4

Stockholders’ equity:
Common stock, $1 par value, 200,000,000 shares authorized; 93,546,332 and 77,241,859 shares issued and outstanding, respectively, as of June 30, 2022; and 102,415,883 and 85,636,154 shares issued and outstanding, respectively, as of December 31, 2021	94		102
Additional paid-in capital	457		458
Retained earnings	1,505		1,239
Treasury stock, 16,304,473 shares and 16,779,729 shares, at cost as of June 30, 2022, and December 31, 2021, respectively	(390)		(390)
Accumulated comprehensive loss	(181)		(174)
Total stockholders’ equity	1,484		1,235
Total liabilities and stockholders’ equity	$	2,547	$	2,194

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

Condensed Consolidated Statements of Cash Flows

Dollar amounts in millions

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 497 $ 31 $ 817 $ 64
Adjustments to net income:
Depreciation and amortization 29 28 58 56
Loss on impairment 0 8 0 15
Deferred taxes 3 5 7 1
Loss on early debt extinguishment 0 0 11 0
Other adjustments, net 7 15 10 10
Changes in assets and liabilities (net of acquisitions and divestitures):
Receivables (50) 4 (124) (27)
Prepaid expenses and other current assets (9) (4) (6) (5)
Inventories (3) 38 (53) 2
Accounts payable and accrued liabilities 39 (6) 37 (22)
Income taxes payable, net of receivables (56) 10 16 26
Net cash provided by operating activities 457 129 772 120
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant, and equipment additions (32) (15) (65) (39)
Proceeds from business divestiture 0 14 0 14
Redemption of insurance cash surrender value 0 10 0 10
Other investing activities 1 3 3 3
Net cash (used in) provided by investing activities (31) 12 (63) (12)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowing of long-term debt 0 0 350 350
Repayment of long-term debt, including redemption premium 0 (350) (359) (350)
Payment of cash dividends (16) (17) (33) (33)
Purchase of stock (465) 0 (588) 0
Other financing activities (2) (1) (12) (6)
Net cash (used in) provided by financing activities (484) (368) (642) (39)
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH 2 (2) 0 (5)
Net (decrease) increase in cash, cash equivalents and restricted cash (55) (229) 68 64
Cash, cash equivalents, and restricted cash at beginning of period 658 488 535 195
Cash, cash equivalents, and restricted cash at end of period $ 603 $ 259 $ 603 $ 259
Supplemental cash flow information:
Cash paid for income taxes, net of cash received $ 200 $ 0 $ 221 $ 29
Cash paid for interest, net of cash received $ 0 $ 2 $ 9 $ 12
Unpaid capital expenditures $ 26 $ 11 $ 26 $ 11

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

Condensed Consolidated Statements of Stockholders' Equity

Dollar and share amounts in millions, except per share amounts

Common Stock Treasury Stock Additional
Paid-in
Capital Retained
Earnings Accumulated
Comprehensive
Loss Total
Stockholders'
Equity
Shares Amount Shares Amount
Balance, December 31, 2019 130 $ 130 18 $ (406) $ 454 $ 966 $ (153) $ 991
Net income attributed to LP — — — — — 33 — 33
Dividends paid ($0.145 per share) — — — — — (16) — (16)
Issuance of shares under stock plans — — 0 8 (8) — — 0
Taxes paid related to net settlement of stock-based awards — — — (4) — — — (4)
Compensation expense associated with stock-based compensation — — — — 2 — — 2
Other comprehensive loss — — — — — — (22) (22)
Balance, March 31, 2020 130 $ 130 18 $ (402) $ 448 $ 983 $ (175) $ 984
Net income attributed to LP — — — — — 33 — 33
Dividends paid ($0.145 per share) — — — — — (17) — (17)
Issuance of shares under stock plans — — (1) 2 (1) — — 1
Compensation expense associated with stock-based compensation — — 0 — 1 — — 1
Noncontrolling interest redemption value adjustment — — — — (2) — — (2)
Other comprehensive income — — — — — — 0 —
Balance, June 30, 2020 130 $ 130 17 $ (400) $ 446 $ 999 $ (175) $ 1,000

The accompanying notes are an integral part of these unaudited Condensed Consolidated Financial Statements.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. NATURE OF OPERATIONS AND BASIS FOR PRESENTATION

Nature of Operations

Louisiana-Pacific Corporation and our subsidiaries isare a leading provider of high-performance building solutions that meet the demands of builders, remodelers, and homeowners worldwide. ~~We have leveraged our expertise serving~~Serving the new home construction, repair and remodeling, and outdoor structures markets, we have leveraged our expertise to become an industry leader known for innovation, quality, and reliability. ~~In addition to~~The Company operates 22 plants in our ~~U.S.~~continuing operations across the ~~Company also maintains manufacturing facilities in~~U.S., Canada, Chile, and Brazil through foreign subsidiaries, ~~and~~and it operates facilities through joint ventures. The principal customers for our building solutions are retailers, wholesalers, and homebuilding and industrial businesses in North America and South America, with limited sales to Asia, Australia, and Europe. References to "LP," ~~"the Company,~~the "Company," "we," "our," and "us" refer to Louisiana-Pacific Corporation and its consolidated subsidiaries as a whole.

In June 2022, LP and one of its wholly-owned subsidiaries entered into an asset purchase agreement with Pacific Woodtech Corporation, a Washington corporation, and Pacific Woodtech Canada Holdings Limited, a British Columbia limited company (collectively, the Purchaser). Pursuant to the terms and conditions of the asset purchase agreement, LP agreed to sell to the Purchaser the assets related to its Engineered Wood Products (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. 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.

As of June 30, 2022, we have classified the related assets and liabilities associated with the EWP segment as held for sale in our Condensed Consolidated Balance Sheets. The results of our EWP segment have been presented as discontinued operations in our Condensed Consolidated Statements of Income for all periods presented. See Note 7 –Discontinued Operations for additional information.

Basis for Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) for interim financial information. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal and recurring nature. These Condensed Consolidated Financial Statements and related Notes ~~hereto~~ should be read in conjunction with our ~~Annual Report~~annual report on Form 10-K for the fiscal year ended December 31, ~~2020,~~2021, filed with the SEC on February ~~18, 2021 (2020~~22, 2022 (2021 Annual Report on Form 10-K). Results of operations for interim periods are not necessarily indicative of results to be expected for an entire year. ~~All dollar amounts are shown in millions except per share.~~

~~Recently Adopted Accounting Policies~~

In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). This ASU simplifies the accounting for income taxes by, among other things, eliminating certain existing exceptions related to the general approach in ASC 740 relating to franchise taxes, reducing complexity in the interim-period accounting for year-to-date loss limitations and changes in tax laws, and clarifying the accounting for transactions outside of business combination that result in a step-up in the tax basis of goodwill. The Company adopted ASU 2019-12 effective as of January 1, 2021. There was no impact on our Condensed Consolidated Financial Statements upon adoption.

The following table presents our reportable segment revenues, disaggregated by revenue source. We disaggregate revenue from contracts with customers into major product lines. We have determined that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

As noted in the segment reporting information in Note 17 below, our reportable segments are Siding, Oriented Strand Board (OSB), ~~Engineered Wood Products (EWP),~~ and South ~~America.~~

America (dollar amounts in millions).


Three Months Ended June 30, 2021
By product type and family:	Siding		OSB		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	288	$	—	$	10	$	—	$	—	$	298
OSB - Structural Solutions	—		350		63		—		—		414
	288		350		74		—		—		712
Commodity
OSB - commodity	—		425		—		—		—		425

Other

Other products	3		2		—		26		—		31
	$	291	$	778	$	74	$	26	$	—	$	1,168

Three Months Ended June 30, 2020
By product type and family: Siding OSB EWP South America Other Inter-segment Total
Value-add
Siding Solutions $ 207 $ 0 $ 0 $ 5 $ 0 $ 0 $ 212
OSB - Structural Solutions 0 95 1 32 0 0 128
I-Joist — — 32 — — — 32
LVL 0 0 30 0 0 0 30
LSL 0 0 9 0 0 0 9
207 95 72 37 0 0 411
Commodity
OSB - commodity 0 108 0 0 0 0 108
Plywood 0 0 3 0 0 0 3
0 108 3 0 0 0 111
Other
CanExel siding 0 0 0 0 3 0 3
Other products 13 1 4 1 4 — 23
$ 220 $ 204 $ 79 $ 38 $ 7 $ 0 $ 548


Six Months Ended June 30, 2022
By product type and family:	Siding		OSB		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	686	$	—	$	12	$	—	$	—	$	698


OSB - Structural Solutions	—		791		123		—		(2)		913
	686		791		135		—		(2)		1,611
Commodity
OSB - commodity	—		621		—		—		—		621
Other
Other products	3		5		2		55		—		66
	$	689	$	1,417	$	137	$	55	$	(2)	$	2,297


Six Months Ended June 30, 2021
By product type and family:	Siding		OSB		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	570	$	—	$	20	$	—	$	—	$	589
OSB - Structural Solutions	—		605		104		—		—		709
	570		605		124		—		—		1,298
Commodity
OSB - commodity	—		707		—		—		—		707

Other
Other products	6		5		3		43		(1)		57
	$	576	$	1,317	$	126	$	43	$	(1)	$	2,062

Six Months Ended June 30, 2020
By product type and family: Siding OSB EWP South America Other Inter-segment Total
Value-add
Siding Solutions $ 398 $ 0 $ 0 $ 8 $ 0 $ 0 $ 406
OSB - Structural Solutions 0 198 2 64 0 0 264
I-Joist — — 69 — — — 69
LVL 0 0 66 0 0 0 66
LSL 0 0 21 0 0 0 21
398 198 158 72 0 0 826
Commodity
OSB - commodity 0 221 0 0 0 0 221
Plywood 0 0 9 0 0 0 9
0 221 9 0 0 0 230
Other
CanExel siding 0 0 0 0 14 0 14
Other products 34 5 11 2 11 — 63
$ 432 $ 424 $ 178 $ 74 $ 25 $ 0 $ 1,133

Revenue is recognized when obligations under the terms of a contract ~~(i.e.~~(i.e., purchase orders) with our customers are satisfied; generally, this occurs with the transfer of control of our products at a point in time. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. The shipping cost incurred by us to deliver products to our customers is recorded in cost of sales. The expected costs associated with our warranties continue to be recognized as an expense when the products are sold.

Our businesses routinely incur customer program costs to obtain favorable product placement, to promote sales of products, and to maintain competitive pricing. Customer program costs and incentives, including rebates and promotion and volume allowances, are accounted for as deductions from net sales at the time the program is initiated. These reductions from revenue are recorded at the time of sale or the implementation of the program based on management’s best estimates. Estimates are based on historical and projected experience for each type of program or customer. Volume allowances are accrued based on management’s estimates of customer volume achievement and other factors incorporated into customer agreements, such as new product purchases, store sell-through, and merchandising support. Management adjusts accruals when circumstances indicate (typically as a result of a change in volume expectations).

We ship some of our products to customers’ distribution centers on a consignment basis. We retain title to our products stored at the distribution centers. As our products are removed from the distribution centers by retailers and shipped to retailers’ stores, title passes from us to the retailers. At that time, we invoice the retailers and recognize revenue for these consignment transactions. We do not offer a right of return for products shipped to the retailers’ stores from the ~~distribution.~~distribution centers.

NOTE 3. EARNINGS PER SHARE

Basic earnings per share is based upon the weighted-average number of shares of common stock outstanding. Diluted earnings per share is based upon the weighted-average number of shares of common stock outstanding, plus all potentially dilutive securities that were assumed to be converted into common shares at the beginning of the period under the treasury stock method. This method requires that the effect of potentially dilutive common stock equivalents (stock options, stock-settled appreciation rights (SSARs), restricted stock units, and performance stock units) be excluded from the calculation of diluted earnings per share for the periods in which losses are reported because the effect is anti-dilutive.

The following table sets forth the computation of basic and diluted earnings per share ~~(in~~(dollar amounts in millions, except per share amounts):
Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Net income attributed to LP
Weighted average common shares outstanding - basic 101 112 103 112
Dilutive effect of employee stock plans 1 1 1 1
Shares used for diluted earnings per share 102 113 104 113
Earnings per share:
Basic earnings $ 4.93 $ 0.29 $ 7.90 $ 0.59
Diluted earnings $ 4.90 $ 0.29 $ 7.85 $ 0.58


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Income from continuing operations	$	348	$	486	$	769	$	802
Net loss attributed to noncontrolling interest	—		—		1		1
Income from continuing operations attributed to LP	348		486		770		803
Income for discontinued operations, net of income taxes	37		11		99		14
Net income attributed to LP	$	384	$	498	$	868	$	818

Weighted average common shares outstanding - basic	81		101		83		103
Dilutive effect of employee stock plans	—		1		1		1
Shares used for diluted earnings per share	81		102		84		104
Net income attributed to LP per share - basic:
Continuing operations	$	4.30	$	4.82	$	9.25	$	7.76
Discontinued operations	0.46		0.11		1.18		0.14
Net income attributed to LP per share - basic	$	4.76	$	4.93	$	10.43	$	7.90

Net income attributed to LP per share – diluted:
Continuing operations	$	4.28	$	4.79	$	9.19	$	7.71
Discontinued operations	0.45		0.11		1.18		0.14
Net income attributed to LP per share - diluted	$	4.73	$	4.90	$	10.36	$	7.85

NOTE 4. FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable

inputs and minimize the use of unobservable inputs when measuring fair value. We are required to classify these financial assets and liabilities into two groups: (i) recurring—measured on a periodic basis, and (ii) non-recurring—measured on an as-needed basis.

Trading securities consist of rabbi trust financial assets, which are recorded in Other assets in our Condensed Consolidated Balance Sheets. The assets of the rabbi trust are invested in mutual funds and are reported at fair value based on active market quotations, which represent Level 1 inputs. ~~The assets of the rabbi trust were $6 million and $5 million at June 30, 2021, and December 31, 2020, respectively.~~

~~We estimated our~~The fair value of the 3.625% Senior Notes due in 2029 (2029 Senior Notes) was estimated to ~~have a fair value of $352~~be $279 million and $358 million as of June 30, 2022, and December 31, 2021, respectively, based ~~upon~~on market quotations. ~~Our~~The 2029 Senior Notes and other long-term debt are categorized as Level 1 in the U.S. GAAP fair value hierarchy. Fair values are based on trading activity among the Company’s lenders and the average bid and ask price as determined using published rates.

There were no outstanding amounts borrowed under our Amended Credit Facility (defined below) as of June 30, ~~2021.~~

During the three and six months ended June 30, 2020, we sold our auction rate securities (ARS) and recognized a $3 million gain on available for sale securities, which is included in Investment income in the Condensed Consolidated Statements of Income.

2022.

Carrying amounts reported on the balance sheet for cash and cash equivalents, accounts receivables, and accounts payable approximate fair value due to the short-term maturity of these items.

NOTE 5. RECEIVABLES

Receivables consisted of the ~~following:~~following (dollar amounts in millions):

June 30, 2021 December 31, 2020
Trade receivables $ 281 $ 161
Income tax receivable 5 2
Other receivables 25 23
Allowance for doubtful accounts (2) (2)
Total $ 310 $ 184


	June 30, 2022		December 31, 2021
Trade receivables	$	199	$	156
Income tax receivable	4		1
Other receivables	18		13
Allowance for doubtful accounts	(1)		(1)
Total	$	219	$	169

Trade receivables are primarily generated by sales of our products to our wholesale and retail customers. Other receivables as of June 30, ~~2021,~~2022, and December 31, ~~2020,~~2021, primarily consist of sales tax receivables, vendor rebates, ~~a receivable associated with an affiliate,~~ and other miscellaneous receivables.

NOTE 6. INVENTORIES

Inventories are valued at the lower of cost or net realizable value. Inventory cost includes materials, labor, and operating overhead. The major types of inventories ~~are as follows~~ (work in process is not material and is included in Semi-finished ~~inventory below)~~inventory) are as follows (dollar amounts in millions):


		June 30, 2021		December 31, 2020			June 30, 2022		December 31, 2021
Logs	Logs	$	53	$	49	Logs	$	47	$	50
Other raw materials	Other raw materials	48		36		Other raw materials	81		57
Semi-finished inventory	Semi-finished inventory	43		28		Semi-finished inventory	26		20
Finished products	Finished products	167		146		Finished products	157		150
Total	Total	$	311	$	259	Total	$	309	$	278

NOTE 7. 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.

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,
	2022		2021		2022		2021
Net sales	$	218	$	158	$	388	$	280
Cost of sales	(171)		(136)		(299)		(248)
Gross profit	48		22		89		33
Selling, general, and administrative expenses	(6)		(4)		(9)		(9)

Income from operations of discontinued operations	42		18		80		25
Other non-operating items	—		(3)		—		(5)
Gain on disposal before income taxes	—		—		39		—
Income from discontinued operations before income taxes	42		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,
	2022		2021
Net cash provided by discontinued operating activities	$	46	$	4
Net cash provided by (used in) discontinued investing activities	$	56	$	(3)

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, 2022		December 31, 2021
Carrying amounts of assets included as part of discontinued operations:
Accounts receivable, net	$	36	$	22
Inventories	54		46
Timber and timberlands	27		42
Property, plant, and equipment, net	30		30
Operating lease assets	1		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 liabilities	27		42
Total liabilities classified as discontinued operations in the condensed consolidated balance sheet	$	69	$	76

NOTE 7.8. GOODWILL AND OTHER INTANGIBLES

Goodwill and indefinite-lived intangible assets are not amortized and are subject to assessment for impairment by applying a fair ~~value based~~value-based test on an annual basis, or more frequently if circumstances indicate a potential impairment. The Company’s annual assessment date is October 1.

Changes in goodwill and other intangible assets ~~as of~~for the six months ended June 30, ~~2021,~~2022, are provided in the following ~~table:~~table (dollar amounts in millions):

Timber licenses1
Goodwill Developed Technology Trademarks
Beginning balance December 31, 2020 $ 34 $ 25 $ 19 $ 3
Amortization (2) — (1) 0
Ending balance June 30, 2021 $ 33 $ 25 $ 18 $ 2



	Timber licenses1		Goodwill		Developed Technology		Trademarks
Beginning balance December 31, 2021	$	30	$	19	$	17	$	2


Amortization	(1)		—		(1)		—
Ending balance June 30, 2022	$	29	$	19	$	16	$	2

1Timber licenses are included in Timber and timberlands on the Condensed Consolidated Balance Sheets.

NOTE 8.9. REDEEMABLE NONCONTROLLING INTEREST

Redeemable noncontrolling interest is interest in subsidiaries that is redeemable outside of our control, either for cash or other assets. These interests are classified as mezzanine equity and measured at the greater of estimated redemption value or carrying value at the end of each reporting period. Net loss attributed to noncontrolling interest is recorded in the Condensed Consolidated Statements of Income. Any adjustments to the redemption value of redeemable noncontrolling interest are recognized in either net income or through accumulated paid-in capital, depending on the nature of the underlying security (preferred or common units).

The components of redeemable noncontrolling interest ~~are~~ as ~~follows:~~of June 30, 2022, were as follows (dollar amounts in millions):



Beginning balance December 31, ~~2020~~2021	$	104


Net loss attributed to noncontrolling interest	(1)

Ending balance June 30, ~~2021~~2022	$	93

~~The following table summarizes our outstanding debt:~~

~~In March 2021, we issued $350 million of the 2029 Senior Notes.~~ ~~We may redeem the 2029~~ ~~Senior~~ Notes, in whole or in part, prior to March 15, 2024, at a redemption price equal to 100% of the principal amount thereof plus a “make-whole” premium set forth in the indenture governing our 2029 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. On or after March 15, 2024, we may, at our option on one or more occasions, redeem all or any portion of these notes at the redemption prices set forth in the indenture governing the 2029 Senior Notes, plus accrued and unpaid interest, if any, to, but not including, the date of redemption. The indenture governing the 2029 Senior Notes contains certain covenants that, among other things, limit our ability to grant liens to secure indebtedness, engage in sale and leaseback transactions and merge or consolidate or sell all or substantially all of our assets. If we are subject to a "change of control," as defined in the indenture, we are required to offer to repurchase the 2029 Senior Notes at a purchase price equal to 101% of the principal amount thereof plus accrued and unpaid interest, if any, thereon to, but not including, the date of purchase. The indenture governing the 2029 Senior Notes contains customary events of default, including failure to make required payments on the 2029 Senior Notes, failure to comply with certain agreements or covenants contained in the indenture, failure to pay or acceleration of certain other indebtedness and certain events of bankruptcy and insolvency. An event of default in the indenture allows either the indenture trustee or the holders of at least 25% in aggregate principal amount of the then-outstanding 2029 Senior Notes to accelerate, or in certain cases, automatically causes the acceleration of, the amounts due under the 2029 Senior Notes.

~~In September 2016, LP issued $350 million aggregate principal amount Senior Notes due 2024 (2024 Senior Notes). In February 2021, LP~~ delivered to holders of the 2024 Senior Notes a conditional notice of redemption to redeem on March 27, 2021 all of the 2024 Senior Notes outstanding at a redemption price of 102.438% of the principal amount thereof plus accrued and unpaid interest to, but not including, the redemption date. The redemption notice became irrevocable on March 11, 2021, and the 2024 Senior Notes were fully redeemed on March 27, 2021. In connection with this redemption, LP recorded an early debt extinguishment charge of $11 million, recorded within Other non-operating items on the Condensed Consolidated Statements of Income, which included $9 million of redemption premium and $2 million of unamortized debt costs associated with these notes.

~~Deferred debt costs are amortized over the life of the related debt using a straight-line basis which approximates the effective interest method.~~ If ~~the debt is retired early, the related unamortized deferred financing costs are written off in the period the debt is retired to Other non-operating items. During the~~ ~~six~~ ~~months ended June 30, 2021, $2 million of deferred debt costs were written off in association with the 2024 Senior Notes extinguishment, and we paid $4 million in~~ ~~debt issuance costs that will be deferred and amortized over the life of the 2029 Senior Notes.~~

In June 2021, we entered into a third amendment (Third Amendment) to our revolving credit facility, dated as of June 27, 2019 (Credit Facility), with American AgCredit, PCA, as administrative agent and CoBank, ACB, as letter of credit issuer, (as amended, the Amended Credit Facility). The Amended Credit Facility provides a revolving credit facility in the principal amount of up to $550 million, with a $60 million sub-limit for letters of credit. The

revolving facility, pursuant to the Amended Credit Facility, terminates, and all loans made thereunder become due in June 2027. LP has granted a security interest in substantially all of its personal property to secure the Amended Credit Facility, and certain of LP’s existing and future wholly-owned domestic subsidiaries may guaranty our obligations under the Amended Credit Facility and, subject to certain limited exceptions, provide security through a security interest in substantially all the personal property of these subsidiaries. The Amended Credit Facility provides a release of security interest after obtaining an Investment Grade rating from any one of the Moody's, S&P, or Fitch. There are no outstanding amounts borrowed under the Amended Credit Facility as of June 30, 2021.

Revolving borrowings under the Amended Credit Facility accrue interest, at our option, at either (a) a “base rate” plus a margin of 0.500% to 1.500% or (b) LIBOR plus a margin of 1.500% to 2.500%. The Amended Credit Facility also includes an unused commitment fee, due quarterly, ranging from 0.200% to 0.425%. The applicable margins and fees within these ranges are based on our ratio of consolidated EBITDA to cash interest charges. The “base rate” is the highest of (i) the Federal funds rate plus 0.5%, (ii) the U.S. prime rate, and (iii) one-month LIBOR plus 1.0%.

The Amended Credit Facility contains various restrictive covenants and customary events of default, the occurrence of which could result in the acceleration of our obligation to repay the indebtedness outstanding thereunder. The Amended Credit Facility also contains financial covenants that require us and our consolidated subsidiaries to have, as of the end of each quarter, (i) a capitalization ratio (i.e., funded debt less unrestricted cash to total capitalization) of no more than 57.5% and (ii) a minimum consolidated net worth of at least $475 million plus 70% of consolidated net income after December 31, 2019, without a deduction for net losses.

In March 2020, LP entered into a letter of credit facility agreement (Letter of Credit Facility) with Bank of America, N.A., which provides for the funding of letters of credit up to an aggregate outstanding amount of $20 million, which may be secured by certain cash collateral of LP. The Letter of Credit Facility includes an unused commitment fee, due quarterly, ranging from 0.50% to 1.875% of the daily available amount to be drawn on each letter of credit issued under the Letter of Credit Facility. The Letter of Credit Facility is subject to similar affirmative, negative, and financial covenants as those set forth in the Amended Credit Facility, including capitalization ratio and minimum net worth covenants. As of June 30, 2021, we secured $13 million of outstanding letters of credit with cash collateral, included in Restricted cash in our Condensed Consolidated Balance Sheets.

~~Deferred debt costs are amortized over the life of the related debt using a straight-line basis, which approximates the effective interest method.~~ ~~Included in such amortized amounts are deferred debt costs associated with our Amended Credit Facility, which are recorded within Other assets on our Condensed Consolidated Balance Sheets. During the three months ended June 30, 2021, we paid $2 million in~~ ~~debt issuance costs in connection with the Third Amendment that was deferred and will be amortized over the life of the Amended Credit Facility.~~

~~As of June 30, 2021, we were in compliance with all financial covenants under the Amended Credit Facility (as well as the Letter of Credit Facility by such compliance).~~

NOTE 10. INCOME TAXES

For interim periods, we recognize income tax expense by applying the estimated annual effective income tax rate to year-to-date results unless this method does not result in a reliable estimate of year-to-date income tax expense. Each period, the income tax accrual is adjusted to the latest estimate, and the difference from the previously accrued year-to-date balance is adjusted in the current quarter. Changes in profitability estimates in various jurisdictions will impact our quarterly effective income tax rates.

The tax provision for income taxes from continuing operations for the six months ended June 30, ~~2021~~2022 and ~~2020,~~2021, reflected an estimated annual effective tax rate of ~~24%~~25% and ~~26%~~24%, respectively, excluding discrete items discussed below. The total effective tax rate for continuing operationsfor the three and six months ended June 30, ~~2021,~~2022, was ~~23%~~25% and 24%, compared to ~~37% and 30%~~23% for the comparable periods in ~~2020,~~2021, respectively.

We ~~recognized~~recorded a net discrete tax benefit of $9 million ~~during~~in both the six months ended June 30, 2022 and 2021, ~~primarily~~with the most significant benefit related to excess tax benefits from stock-based compensation in 2022 and the most significant benefits related to stock-based compensation and adjustments to the prior year, including an adjustment to the deferred tax rate. We recognized a net discrete tax expense of $4 million during the six months ended June 30, 2020, primarily related to the surrender of a corporate-owned life insurance contract and a sales of ARS, offset by a benefit related to stock-based compensation.

NOTE 11. COMMITMENTS AND CONTINGENCIES

We maintain reserves for various contingent liabilities as ~~follows:~~follows (dollar amounts in millions):

June 30, 2021 December 31, 2020
Environmental reserves $ 14 $ 14
Other reserves 0 0
Total contingencies 14 14
Current portion (included in Accrued liabilities) (1) (1)
Long-term portion (included in Other long-term liabilities) $ 13 $ 13


	June 30, 2022		December 31, 2021
Environmental reserves	$	27	$	25
Other reserves	—		—
Total contingencies	27		25
Current portion (included in Accounts payable and accrued liabilities)	(1)		(1)
Long-term portion	$	26	$	24

Estimates of our loss contingencies are based on various assumptions and judgments. Due to the numerous uncertainties and variables associated with these assumptions and judgments, both the precision and reliability of the resulting estimates of the related contingencies are subject to substantial uncertainties. We regularly monitor our estimated exposure to contingencies and, as additional information becomes known, may change our estimates significantly. While no estimate of the range of any such change can be made at this time, the amount that we may ultimately pay in connection with these matters could materially exceed, in either the near term or the longer term, the amounts accrued to date. Our estimates of our loss contingencies do not reflect potential future recoveries from insurance carriers except to the extent that recovery may, from time to time, be deemed probable as a result of an insurer’s agreement to payment terms.

We maintain a reserve for undiscounted estimated environmental loss contingencies. This reserve is primarily for estimated future costs of remediation of hazardous or toxic substances at numerous sites currently or previously owned by the Company. Our estimates of our environmental loss contingencies are based on various assumptions and judgments, the specific nature of which varies considering the particular facts and circumstances surrounding each environmental loss contingency. These estimates typically reflect assumptions and judgments as to the

probable nature, magnitude, and timing of the required investigation, remediation, and/or monitoring activities and the probable cost of these activities, and in some cases, reflect assumptions and judgments as to the obligation or willingness and ability of third parties to bear a proportionate or allocated share of the cost of these activities. Due to the numerous uncertainties and variables associated with these assumptions and judgments, and the effects of changes in governmental regulation and environmental technologies, both the precision and reliability of the resulting estimates of the related contingencies are subject to substantial uncertainties. We regularly monitor our estimated exposure to environmental loss contingencies and, as additional information becomes known, may change our estimates significantly. ~~However, no estimate of the range of any such change can be made at this time.~~

From time to time, we and our subsidiaries are parties to certain legal proceedings. Based on the information currently available, management believes the resolution of such proceedings will not have a material ~~adverse~~ effect on our financial position, results of operations, cash flows, or liquidity.

NOTE 12. IMPAIRMENT OF LONG-LIVED ASSETS

We review the carrying values of our long-lived assets for potential impairments and believe we have adequate support for the carrying ~~value~~values of our long-lived assets. If demand and pricing for our products fall to levels significantly below cycle average demand and pricing, or should we decide to invest capital in alternative projects, or should changes occur related to our wood supply for our mills, it is possible that future impairment charges will be required. As of June 30, ~~2021,~~2022, there were no indications of impairment.

We also review from time to time potential dispositions of various assets, considering current and anticipated economic and industry conditions, our strategic plan, and other relevant factors. Because a determination to dispose of particular assets can require management to make assumptions regarding the transaction structure of the disposition and to estimate the net sales proceeds, which may be less than previous estimates of undiscounted future net cash flows, we may be required to record impairment charges in connection with decisions to dispose of assets.

During the three and six months ended June 30, 2020, we recorded $4 million and $9 million, respectively, in pre-tax impairment charges primarily related to our fiber producing assets at a Siding facility.

NOTE 13. PRODUCT WARRANTIES

We offer warranties on the sale of most of our products and record an accrual for estimated future claims. Such accruals are based upon historical experience and management’s estimate of the level of future claims. The activity in warranty reserves for the three and six months ended June 30, ~~2021,~~2022 and ~~2020,~~2021, is summarized in the following ~~table:~~table (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Beginning balance $ 8 $ 8 $ 8 $ 8
Accrued to expense 0 0 1 1
Payments made 0 0 (1) (1)
Total warranty reserves 8 8 8 8
Current portion of warranty reserves (included in Other current liabilities) (2) (2) (2) (2)
Long-term portion of warranty reserves (included in Other long-term liabilities) $ 6 $ 6 $ 6 $ 6


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Beginning balance	$	8	$	8	$	7	$	8
Accrued to expense	—		—		2		1


Payments made	(1)		—		(2)		(1)
Total warranty reserves	7		8		7		8
Current portion of warranty reserves (included in Accounts payable and accrued liabilities)	(2)		(2)		(2)		(2)
Long-term portion of warranty reserves (included in Other long-term liabilities)	$	6	$	6	$	6	$	6

We continue to monitor warranty and other claims associated with ~~these~~our products and believe, as of June 30, ~~2021,~~2022, that the warranty reserve balances associated with these matters are adequate to cover future warranty payments. However, it is possible that additional changes may be required in the future.

NOTE 14. DEFINED BENEFIT PENSION PLANS

The following table summarizes our net periodic pension cost for our defined benefit pension and postretirement plans during the three and six months ended June 30, 2022 and 2021 ~~and 2020:~~(dollar amounts in millions):


		Three Months Ended June 30,				Six Months Ended June 30,					Three Months Ended June 30,				Six Months Ended June 30,
		2021		2020		2021		2020			2022		2021		2022		2021
Service cost	Service cost	$	0	$	1	$	1	$	1	Service cost	$	1	$	—	$	2	$	1
Other components of net periodic pension cost1:	Other components of net periodic pension cost1:									Other components of net periodic pension cost1:
Interest cost	Interest cost	2		3		4		5		Interest cost	2		2		3		4
Expected return on plan assets	Expected return on plan assets	(3)		(4)		(6)		(7)		Expected return on plan assets	(2)		(3)		(3)		(6)
Amortization of prior service cost	Amortization of prior service cost	0		0		0		0		Amortization of prior service cost	—		—		—		—
Amortization of net loss	Amortization of net loss	1		1		3		3		Amortization of net loss	1		1		2		3
Net periodic pension cost	Net periodic pension cost	$	1	$	1	$	1	$	2	Net periodic pension cost	$	2	$	1	$	4	$	1

1Other components of net periodic pension cost are included in Other non-operating items on our Condensed Consolidated Statements of Income.

In November 2021, the Company initiated the termination of our frozen U.S. and Canadian defined benefit pension plans (collectively, the Plan), which would result in the full settlement of the Company's Plan obligations. The distribution of Plan assets pursuant to the termination will not be made until the Plan termination satisfies all regulatory requirements, which is expected to occur by the end of 2022. Plan participants will receive their full accrued benefits from Plan assets by electing either lump-sum distributions or annuity contracts with a qualifying third-party annuity provider. The Plan termination is expected to result in pension settlement expense in 2022, which will be determined based on prevailing market conditions, the actual lump-sum distributions, and annuity purchase rates at the date of distribution. As a result, we are currently unable to reasonably estimate the timing or final amount of such settlement charges. Upon settlement, we expect to recognize pre-tax pension settlement charges that will include (1) a non-cash charge for the recognition of all pre-tax actuarial losses accumulated in Accumulated other comprehensive loss ($98 million as of June 30, 2022) and (2) any cash contributions to settle the Plan’s obligations ($8 million net projected benefit obligation as of June 30, 2022). The actual amount of the settlement charges and any potential cash contribution will depend on various factors, including interest rates, Plan asset returns, and the lump-sum election rate.

NOTE 15. ACCUMULATED COMPREHENSIVE LOSS

Accumulated comprehensive loss is provided in the following table for the three months ended June 30, 2022 and 2021 (dollar amounts in millions):


	Pension		Translation Adjustments		Other		Total
Balance at March 31, 2022	$	(75)	$	(73)	$	(1)	$	(149)
Reclassified to income statement, net of taxes1	1		—		—		1
Translation adjustments	—		(32)		—		(32)
Balance at June 30, 2022	$	(74)	$	(105)	$	(1)	$	(181)


	Pension		Translation Adjustments		Other		Total
Balance at March 31, 2021	$	(81)	$	(75)	$	(2)	$	(157)
Reclassified to income statement, net of taxes1	1		—		—		1
Translation adjustments	—		7		—		7
Balance at June 30, 2021	$	(80)	$	(68)	$	(2)	$	(149)

Accumulated comprehensive loss is provided in the following table for the six months ended June 30, 2022 and 2021 ~~and 2020:~~(dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Pension1
Balance at beginning of period $ (81) $ (88) $ (81) $ (89)
Amounts reclassified from accumulated other comprehensive loss to income 2
1 1 2 2
Total other comprehensive income 1 1 2 2
Balance at end of period (80) (87) (80) (87)
Translation Adjustments
Balance at beginning of period (75) (90) (68) (67)
Translation adjustments 7 2 0 (21)
Balance at end of period (68) (88) (68) (88)
Other
Balance at beginning of period (2) 3 (2) 3
Unrealized gains on securities, net of reversals 0 (3) 0 (3)
Balance at end of period (2) 0 (2) 0
Accumulated other comprehensive loss, end of period $ (149) $ (175) $ (149) $ (175)

1 ~~Amounts are presented net of tax.~~


	Pension		Translation Adjustments		Other		Total
Balance at December 31, 2021	$	(76)	$	(96)	$	(1)	$	(174)
Reclassified to income statement, net of taxes1	2		—		—		2
Translation adjustments	—		(9)		—		(9)
Balance at June 30, 2022	$	(74)	$	(105)	$	(1)	$	(181)


	Pension		Translation Adjustments		Other		Total
Balance at December 31, 2020	$	(81)	$	(68)	$	(2)	$	(151)
Reclassified to income statement, net of taxes1	2		—		—		2
Translation adjustments	—		—		—		—
Balance at June 30, 2021	$	(80)	$	(68)	$	(2)	$	(149)

1 Amounts of actuarial loss and prior service cost are components of net periodic benefit cost.

NOTE 16. OTHER OPERATING AND NON-OPERATING ITEMS

Other operating credits and charges, net

Other operating credits and charges, net, is comprised of the following ~~components:~~components (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Reorganization charges $ 0 $ (2) $ 0 $ (4)
Canadian wage subsidies 0 4 0 4
Product-line discontinuance charges 0 (10) 0 (10)
Insurance recoveries 2 0 2 0
Other 1 2 1 2
Other operating credits and charges, net 3 (6) 3 (8)


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Insurance recoveries	$	13	$	2	$	13	$	2
Reorganization charges	—		—		(1)		—
Environmental costs	(2)		—		(2)		—
Other	—		1		—		1
Other operating credits and charges, net	$	11	$	3	$	10	$	3

Other non-operating items

Other non-operating items is comprised of the following ~~components:~~components (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Interest expense $ (3) $ (6) $ (8) $ (11)
Amortization of debt charges 0 0 (1) (1)
Interest expense (4) (6) (9) (12)
Interest income 0 1 1 1
Gain on sale of auction rate securities 0 3 0 3
SERP market adjustments 0 0 0 (1)
Investment income 0 4 1 3
Net periodic pension cost, excluding service cost 0 0 0 (1)
Loss on early debt extinguishment 0 0 (11) 0
Foreign currency gain (loss) (6) (1) (5) 5
Other non-operating items $ (6) $ (1) $ (16) $ 4


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021










Net periodic pension cost, excluding service cost	$	(1)	$	—	$	(3)	$	—
Loss on early debt extinguishment	—		—		—		(11)
Foreign currency gain (loss)	$	3	$	(3)	$	(5)	$	—
Other non-operating items	$	2	$	(3)	$	(8)	$	(11)

NOTE 17. SELECTED SEGMENT DATA

We operate in ~~four~~3 segments: Siding, OSB, ~~EWP,~~ and South America. Our business units have been aggregated into these ~~four~~3 segments based upon the similarity of economic characteristics, customers, and distribution methods. Our results of operations are summarized below for each of these segments separately, as well as for the “Other” category, which comprises other products that are not individually significant. In June 2022, LP reached an agreement for the sale of its EWP segment assets. As a result of this transaction, EWP has been reclassified to discontinued operations and is no longer a reportable segment of the Company. See "Note 7 –Discontinued Operations" for additional information.

We evaluate the performance of our business segments based on net sales and Adjusted EBITDA. Accordingly, our chief operating decision maker evaluates performance and allocates resources based primarily on net sales and Adjusted EBITDA for our business segments. Adjusted EBITDA is a non-GAAP financial measure and is defined as income attributed to LP from continuing operations before interest expense, provision for income taxes, depreciation and amortization, and excludes stock-based compensation expense, loss on impairment attributed to LP, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items.

Information about our ~~product~~business segments is as ~~follows:~~follows (dollar amounts in millions):

Three Months Ended June 30, Six Months Ended June 30,
2021 2020 2021 2020
Net sales
Siding $ 291 $ 220 $ 576 $ 432
OSB 778 204 1,317 424
EWP 158 79 280 178
South America 74 38 126 74
Other 26 7 43 25
Intersegment sales 0 0 (1) 0
Total sales $ 1,325 $ 548 $ 2,342 1,133
PROFIT BY SEGMENT
Net income $ 497 $ 31 $ 817 $ 64
Add (deduct):
Net loss attributed to noncontrolling interest 0 2 1 2
Income attributed to LP 498 33 818 66
Provision for income taxes 147 19 244 28
Depreciation and amortization 29 28 58 56
Stock-based compensation expense 4 1 5 3
Loss on impairment attributed to LP 0 7 0 14
Other operating credits and charges, net (3) (4) (3) (2)
Product-line discontinuance charges 0 10 0 10
Loss on early debt extinguishment 0 0 11 0
Interest expense 4 6 9 12
Investment income 0 (4) (1) (3)
Other non-operating items 6 1 5 (4)
Adjusted EBITDA $ 684 $ 97 $ 1,145 $ 180
Siding $ 77 $ 51 $ 168 $ 93
OSB 565 46 919 81
EWP 18 3 26 12
South America 34 11 54 18
Other (4) (5) (8) (8)
Corporate (7) (9) (14) (16)
Adjusted EBITDA $ 684 $ 97 $ 1,145 $ 180


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net sales
Siding	$	358	$	291	$	689	$	576
OSB	673		778		1,417		1,317

South America	70		74		137		126
Other	30		26		55		43
Intersegment sales	(1)		—		(2)		(1)
Total sales	$	1,130	$	1,168	$	2,297	2,062
PROFIT BY SEGMENT
Net income	$	385	$	497	$	868	$	817
Add (deduct):
Net loss attributed to noncontrolling interest	—		—		1		1
Income from discontinued operations, net of income taxes	(37)		(11)		(99)		(14)
Income attributed to LP from continuing operations	348		486		770		803
Provision for income taxes	116		144		240		239
Depreciation and amortization	32		29		64		57
Stock-based compensation expense	6		3		13		5

Other operating credits and charges, net	(11)		(3)		(10)		(3)
Loss on early debt extinguishment	—		—		—		11
Interest expense	3		4		6		9
Investment income	(2)		—		(3)		(1)
Other non-operating items	(2)		3		8		—
Adjusted EBITDA	$	491	$	665	$	1,089	$	1,119

Siding	$	78	$	77	$	160	$	168
OSB	403		565		908		919

South America	26		34		51		54
Other	(7)		(4)		(13)		(8)
Corporate	(9)		(7)		(17)		(14)
Adjusted EBITDA	$	491	$	665	$	1,089	$	1,119

NOTE 18. SUBSEQUENT EVENT

~~On February 6, 2020, we announced that our~~As previously disclosed on May 3, 2022, LP's Board of Directors authorized a share repurchase ~~program (2020~~plan under which LP was authorized to repurchase shares of LP's common stock totaling up to $600 million (the 2022 Share Repurchase Program) under which LP may repurchase up to $200 million of shares of LP’s common stock, and on November 4, 2020, we announced that our Board of Directors expanded the 2020 Share Repurchase Program by authorizing repurchases of an additional $300 million of our common stock. On May 4, 2021, our Board of Directors authorized an additional share repurchase program (2021 Share Repurchase Program) under which we may repurchase up to $1 billion of shares of our common stock.. Subsequent to June 30, ~~2021~~2022, through August ~~4, 2021,~~8, 2022, we ~~paid $151~~used $197 million to repurchase ~~2.7~~3.4 million shares of LP common ~~stock.~~stock under the 2022 Share Repurchase Program.

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our Condensed Consolidated Financial Statements and related Notes and other financial information appearing elsewhere in this quarterly report on Form 10-Q. The following discussion includes statements that are forward-looking statements that are based on the beliefs of our management, as well as assumptions made by and information currently available to our management.

See "Cautionary Statement Regarding Forward-Looking Statements."

We are a leading provider of high-performance building solutions that meet the demands of builders, remodelers, and homeowners worldwide. We have leveraged our expertise serving the new home construction, repair and remodeling, and outdoor structures markets to become an industry leader known for innovation, quality, and reliability. Our manufacturing facilities are located in the U.S., Canada, Chile, and Brazil.

To serve these markets, we operate in ~~four~~three segments: Siding, OSB, ~~EWP,~~ and South America.

In ~~February 2021,~~March 2022, we ~~announced (i)~~sold our 50% equity interest in two joint ventures that ~~LSL production will cease~~produce I-joists to Resolute Forest Products Inc. (Resolute) for $59 million. The joint ventures were comprised of Resolute-LP Engineered Wood Larouche Inc. in Larouche, Quebec, and Resolute-LP Engineered Wood St-Prime Limited Partnership in Saint-Prime, Quebec. The total net carrying value of our equity method investment at the date of sale was $19 million. We recognized a gain on the sale of $39 million during ~~2021 in connection with~~ the conversion of the Houlton, Maine facility from LSL and OSB production to Siding production and (ii) our decision to explore strategic alternatives with respect to the Company's remaining EWP segment, including a possible sale in whole or in part.

~~The COVID-19 pandemic did not materially impact our results of operations for the three and~~ six months ended June 30, ~~2021.~~2022, within Income from discontinued operations in the Condensed Consolidated Statements of Income.

In June 2022, LP ~~is continuing~~and one of its wholly-owned subsidiaries entered into an asset purchase agreement with Pacific Woodtech Corporation, a Washington corporation, and Pacific Woodtech Canada Holdings Limited, a British Columbia limited company (collectively, the Purchaser). Pursuant to ~~follow national, state~~the terms and ~~local health~~conditions of the asset purchase agreement, LP agreed to sell to the Purchaser the assets related to its Engineered Wood Products (EWP) segment in exchange for the Purchaser’s payment to the Company of $210 million in cash, subject to certain purchase price adjustments, and ~~safety guidelines and is running full mill operating schedules as~~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. 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.

As of June 30, ~~2021.~~2022, we have classified the related assets and liabilities associated with the EWP segment as held for sale in our Condensed Consolidated Balance Sheets. The ~~number~~results of ~~cases~~our EWP segment have been presented as discontinued operations in our Condensed Consolidated Statements of ~~COVID-19 has decreased in the United States and certain other parts~~Income for all periods presented. See "Note 7 – Discontinued Operations" of the ~~world in recent months as vaccines have become more widely available, and most restrictions related~~Notes to the ~~COVID-19 pandemic~~Condensed Consolidated Financial Statements included in ~~the United States have been relaxed as the result~~Item 1 of such decrease. However, the duration of the COVID-19 pandemic, the emergence of new variants of the virus, the effect of easing restrictions, actions to contain the pandemic and mitigate its impacts, and the effectsthis quarterly report on ~~our operations cannot be reasonably estimated.~~

Form 10-Q for additional information.

Demand for our Building Products

Demand for our products correlates positively with new home construction and repair and remodeling activity in North America, which historically ~~have~~has been characterized by significant cyclicality. The U.S. Department of Census reported on July ~~20, 2021,~~19, 2022, that actual single housing starts were ~~46% and 33% higher~~3% lower for the three months ended June 30, 2022, and flat for the six months ended June 30, ~~2021, respectively,~~2022, as compared to the same periods in ~~2020.~~2021. Repair and remodeling activity is difficult to reasonably measure, but many indications, including the ~~substantial~~ increase in LP’s retail sales, suggest that repair and remodeling activity ~~grew significantly in the first six months of 2021 as compared~~is continuing to ~~the corresponding period in the prior year.~~

Although housing market demand has recently been ~~very~~ strong, future economic conditions in the United States and the demand for homes remain uncertain due to ~~continuing COVID-19-related disruptions, government directives, actions and economic relief efforts related thereto, and the impact of these actions~~inflationary impacts on the economy, including interest rates, employment levels, consumer confidence, and financial markets, among other things. Additionally, ~~as a result of increased demand in the housing market and a strengthening economy in the United States,~~ we have experienced increases in material prices, supply disruptions, and labor shortages, which will be a challenge ~~for LP~~ as we continue to work to meet the demands of builders, remodelers, and homeowners worldwide. The potential effect of

these factors on our future operational and financial performance is uncertain. As a result, our past performance may not be indicative of future results.

Supply and Demand for OSB

OSB is ~~sold as~~ a commodity ~~for which sales prices fluctuate daily based on market factors over which we have little or no control.~~product, and it is subject to competition from manufacturers worldwide. Product supply is influenced primarily by fluctuations in available manufacturing capacity and imports. The ratio of overall OSB demand to capacity generally drives price. We ~~have experienced increased demand for commodity OSB in the first and second quarters of 2021; however, we~~ cannot predict whether the prices of our OSB products will remain at current levels or increase or decrease in the future.

For additional factors affecting our results, refer to the ~~"Overview"~~“Overview” within our ~~Management's~~“Management's Discussion and Analysis of Financial Condition and Results of ~~Operations~~Operations” section and our “Risk Factors” section contained in our ~~2020~~2021 Annual Report on Form 10-K, and to ~~“About~~the “Cautionary Statement Regarding Forward-Looking Statements” section in this quarterly report on Form 10-Q.

Critical Accounting Policies and Significant Estimates

Note 1 of the Notes to the Condensed Consolidated Financial Statements included in our ~~2020~~2021 Annual Report on Form 10-K is a discussion of our significant accounting policies and significant accounting estimates and judgments. Throughout the preparation of the financial statements, we employ significant judgments in the application of accounting principles and methods. These judgments are primarily related to the assumptions used to arrive at various estimates.

~~While there~~There have been no changes in the application of principles, methods, and assumptions used to determine our significant estimates we may be required to revise certain accounting estimates and judgments related to the economic and business impact of the COVID-19 pandemic, such as, but not limited to, those related to the valuation of goodwill, intangibles, long-lived assets, accounts receivable, and inventory, which could have a material adverse effect on our financial position and results of operations.

since December 31, 2021.

Non-GAAP Financial Measures and Other Key Performance Indicators

In evaluating our business, we utilize non-GAAP financial measures that fall within the meaning of SEC Regulation G and Regulation S-K Item 10(e), which we believe provide users of the financial information with additional meaningful comparison to prior reported results. Non-GAAP financial measures do not have standardized definitions and are not defined by U.S. GAAP. In this quarterly report on Form 10-Q, we disclose income attributed to LP from continuing operations before interest expense, provision for income taxes, depreciation and amortization, and ~~excludes~~exclude stock-based compensation expense, loss on impairment attributed to LP, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items as Adjusted EBITDA from continuing operations (Adjusted EBITDA), which is a non-GAAP financial measure. We have included Adjusted EBITDA in this report because we view it as an important supplemental measure of our performance and believe that it is frequently used by interested persons in the evaluation of companies that have different financing and capital structures and/or tax rates. We also disclose income attributed to LP from continuing operations, excluding loss on impairment attributed to LP, product-line discontinuance charges, interest expense outside of normal operations, other operating credits and charges, net, loss on early debt extinguishment, gain (loss) on acquisition, pension settlement charges, and ~~adjusts~~adjusting for a normalized tax rate as Adjusted Income from continuing operations (Adjusted Income). We also disclose Adjusted Diluted EPS from continuing operations (Adjusted Diluted EPS), calculated as Adjusted Income divided by diluted shares outstanding. We believe that Adjusted Diluted EPS and Adjusted Income are useful measures for evaluating our ability to generate earnings and that providing ~~this measure~~these measures should allow interested persons to more readily compare the earnings for past and future periods.

~~Neither~~ Adjusted EBITDA, Adjusted Income, ~~nor~~and Adjusted Diluted EPS ~~is a substitute~~are not substitutes for the U.S. GAAP ~~measure~~measures of net income and net income per diluted share or for any other U.S. GAAP measures of operating performance. It should be noted that other companies may present ~~similarly-titled~~similarly titled measures differently, and therefore, as presented by us, these measures may not be comparable to ~~similarly-titled~~similarly titled measures reported by other companies. Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS have material limitations as performance measures because they exclude items that are actually incurred or experienced in connection with the ~~operations~~operation of our business.

The following table ~~presents significant items by operating segment and~~ reconciles Net income to Adjusted EBITDA (dollar amounts in millions):

The following table provides the reconciliation of Net income to Adjusted Income (dollar amounts in millions, except ~~earnings~~ per ~~share)~~share amounts):


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock, $1 par value	LPX	New York Stock Exchange


		Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Comprehensive Loss		Total Stockholders' Equity			Common Stock			Treasury Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Comprehensive Loss		Total Stockholders' Equity
		Shares	Amount		Shares	Amount											Shares	Amount		Shares	Amount
Balance, December 31, 2020		124	$	124	17	$	(397)	$	452	$	1,206	$	(151)	$	1,234
Balance, December 31, 2021																Balance, December 31, 2021	102	$	102	17	$	(390)	$	458	$	1,239	$	(174)	$	1,235
Net income attributed to LP	Net income attributed to LP	—	—		—	—		—		320		—		320		Net income attributed to LP	—	—		—	—		—		484		—		484
Dividends paid ($0.16 per share)		—	—		—	—		—		(17)		—		(17)
Dividends paid ($0.22 per share)																Dividends paid ($0.22 per share)	—	—		—	—		—		(19)		—		(19)
Issuance of shares under stock plans																Issuance of shares under stock plans	—	—		(1)	14		(14)		—		—		—
Taxes paid related to net settlement of stock-based awards																Taxes paid related to net settlement of stock-based awards	—	—		—	(15)		—		—		—		(15)
Purchase of stock																Purchase of stock	(2)	(2)		—	—		—		(102)		—		(104)
Compensation expense associated with stock-based compensation																Compensation expense associated with stock-based compensation	—	—		—	—		7		—		—		7
Other comprehensive income																Other comprehensive income	—	—		—	—		—		—		24		24
Balance, March 31, 2022																Balance, March 31, 2022	101	$	101	16	$	(391)	$	451	$	1,601	$	(149)	$	1,613
Net income attributed to LP																Net income attributed to LP	—	—		—	—		—		384		—		384
Dividends paid ($0.22 per share)																Dividends paid ($0.22 per share)	—	—		—	—		—		(18)		—		(18)
Issuance of shares under stock plans	Issuance of shares under stock plans	—	—		0	11		(11)		—		—		0		Issuance of shares under stock plans	—	—		—	2		—		—		—		2
Taxes paid related to net settlement of stock-based awards	Taxes paid related to net settlement of stock-based awards	—	—		—	(6)		—		—		—		(6)		Taxes paid related to net settlement of stock-based awards	—	—		—	(1)		—		—		—		(1)
Purchase of stock	Purchase of stock	(2)	(2)		—	—		—		(120)		—		(122)		Purchase of stock	(7)	(7)		—	—		—		(463)		—		(471)
Compensation expense associated with stock-based compensation	Compensation expense associated with stock-based compensation	—	—		—	—		1		—		—		1		Compensation expense associated with stock-based compensation	—	—		—	—		7		—		—		7
Other comprehensive loss	Other comprehensive loss	—	—		—	—		—		—		(6)		(6)		Other comprehensive loss	—	—		—	—		—		—		(31)		(31)
Balance, March 31, 2021		121	$	121	17	$	(393)	$	443	$	1,390	$	(157)	$	1,404
Net income attributed to LP		—	—		—	—		—		498		—		498
Dividends paid ($0.16 per share)		—	—		—	—		—		(16)		—		(16)
Issuance of shares under stock plans		—	—		0	2		(1)		—		—		1
Taxes paid related to net settlement of stock-based awards		—	—		—	—		—		—		—		—
Purchase of stock		(7)	(7)		—	—		—		(458)		—		(465)
Compensation expense associated with stock-based compensation		—	—		—	—		4		—		—		4
Other comprehensive loss		—	—		—	—		—		—		8		8
Balance, June 30, 2021		114	$	114	17	$	(390)	$	446	$	1,413	$	(149)	$	1,433
Balance, June 30, 2022																Balance, June 30, 2022	94	$	94	16	$	(390)	$	457	$	1,505	$	(181)	$	1,484


Three Months Ended June 30, 2021
Three Months Ended June 30, 2022																Three Months Ended June 30, 2022
By product type and family:	By product type and family:	Siding		OSB		EWP		South America		Other		Inter-segment		Total		By product type and family:	Siding		OSB		South America		Other		Inter-segment		Total
Value-add	Value-add															Value-add
Siding Solutions	Siding Solutions	$	288	$	0	$	0	$	10	$	0	$	0	$	298	Siding Solutions	$	356	$	—	$	6	$	—	$	—	$	362

OSB - Structural Solutions	OSB - Structural Solutions	—		350		0		63		0		0		414		OSB - Structural Solutions	—		384		64		—		(1)		448
I-Joist		—		—		75		—		—		—		75
LVL		0		0		45		0		0		0		45
LSL		0		0		11		0		0		—		11
		288		350		132		74		0		0		843			356		384		70		—		(1)		810
Commodity	Commodity															Commodity
OSB - commodity	OSB - commodity	0		425		0		0		0		—		425		OSB - commodity	—		287		—		—		—		287
Plywood		0		0		19		0		0		0		19
		0		425		19		0		0		0		445
Other	Other															Other
Other products	Other products	3		2		7		0		26		0		38		Other products	1		2		—		30		—		33
		$	291	$	778	$	158	$	74	$	26	$	0	$	1,325		$	358	$	673	$	70	$	30	$	(1)	$	1,130


Three Months Ended June 30, 2020
By product type and family:	Siding		OSB		EWP		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	207	$	0	$	0	$	5	$	0	$	0	$	212
OSB - Structural Solutions	0		95		1		32		0		0		128
I-Joist	—		—		32		—		—		—		32
LVL	0		0		30		0		0		0		30
LSL	0		0		9		0		0		0		9
	207		95		72		37		0		0		411
Commodity
OSB - commodity	0		108		0		0		0		0		108
Plywood	0		0		3		0		0		0		3
	0		108		3		0		0		0		111

Other
CanExel siding	0		0		0		0		3		0		3
Other products	13		1		4		1		4		—		23
	$	220	$	204	$	79	$	38	$	7	$	0	$	548


Six Months Ended June 30, 2020
By product type and family:	Siding		OSB		EWP		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	398	$	0	$	0	$	8	$	0	$	0	$	406
OSB - Structural Solutions	0		198		2		64		0		0		264
I-Joist	—		—		69		—		—		—		69
LVL	0		0		66		0		0		0		66
LSL	0		0		21		0		0		0		21
	398		198		158		72		0		0		826
Commodity
OSB - commodity	0		221		0		0		0		0		221
Plywood	0		0		9		0		0		0		9
	0		221		9		0		0		0		230

Other
CanExel siding	0		0		0		0		14		0		14
Other products	34		5		11		2		11		—		63
	$	432	$	424	$	178	$	74	$	25	$	0	$	1,133


	June 30, 2021		December 31, 2020
2029 Senior Notes	$	350	$	0
2024 Senior Notes	0		350
Amended Credit Facility	0		0
Financing leases	0		1
Unamortized debt costs	(4)		(2)
Total	346		348
Less: current portion	0		0
Long-term portion	$	346	$	348


1 Actual U.S. Housing starts data reported by U.S. Census Bureau as published through July 19, 2022.


	Three Months Ended June 30, 2022				Three Months Ended June 30, 2021
Sales Volume	Siding	OSB	South America	Total		Siding	OSB	South America	Total
Siding Solutions (MMSF)	448	—	9	457		406	—	13	419


OSB - commodity (MMSF)	—	460	—	460		—	481	—	481
OSB - Structural Solutions (MMSF)	—	514	149	664		—	403	147	550





	Six Months Ended June 30, 2022				Six Months Ended June 30, 2021
Sales Volume	Siding	OSB	South America	Total		Siding	OSB	South America	Total
Siding Solutions (MMSF)	869	—	16	885		810	—	26	836


OSB - commodity (MMSF)	—	897	—	897		—	936	—	936
OSB - Structural Solutions (MMSF)	—	1,040	293	1,333		—	804	296	1,100


	Three Months Ended June 30, 2021 versus 2020				Six Months Ended June 30, 2021 versus 2020
	Average Net Selling Price		Unit Shipments		Average Net Selling Price		Unit Shipments
Siding Solutions	9	%	27	%	8	%	33	%


	Three Months Ended June 30, 2022 versus 2021				Six Months Ended June 30, 2022 versus 2021
	Average Net Selling Price		Unit Shipments		Average Net Selling Price		Unit Shipments
Siding Solutions	12	%	10	%	12	%	7	%


1 ~~Actual U.S. Housing starts data reported by U.S. Census Bureau as published through July 20, 2021.~~


Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Purchase Plans or Programs1	Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs (in millions) end
April 1, 2022 - April 30, 2022	2,560,504	$	62.17	2,560,504	$	237
May 1, 2022 - May 31, 2022	2,346,876	$	68.56	2,346,876	$	676
June 1, 2022 - June 30, 2022	2,430,433	$	62.00	2,430,433	$	525
Total for Second Quarter 2022	7,337,813			7,337,813


~~10.1~~2.1			~~Third Amendment to Amended and Restated Credit~~Asset Purchase Agreement, dated as of June ~~8, 2021,~~21, 2022, by and among ~~the Company, as borrower, American AgCredit PCA, as administrative agent, CoBank, ACB, as letter of credit issuer~~Louisiana-Pacific Corporation, Louisiana-Pacific Canada LTD, Pacific Woodtech Corporation and ~~voting participants party thereto, incorporated~~Pacific Woodtech Canada Holdings Limited. Incorporated herein by reference to ~~the Company's~~Exhibit 2.1 to LP’s Current Report on Form 8-K filed on June ~~8, 2021.~~22, 2022.***

10.1			2022 Omnibus Stock Award Plan. Incorporated herein by reference to Annex A to LP’s Definitive Proxy Statement on Schedule 14A, filed on March 18, 2022.

10.2			Form of Restricted Stock Unit Award Agreement with retirement provisions under the 2022 Omnibus Stock Award Plan. Incorporated herein by reference to Exhibit 10.4 to LP's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

10.3			Form of Restricted Stock Unit Award Agreement for directors under the 2022 Omnibus Stock Award Plan. Incorporated herein by reference to Exhibit 10.5 to LP's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

10.4			Form of Performance Shares Award Agreement under the 2022 Omnibus Stock Award Plan. Incorporated herein by reference to Exhibit 10.6 to LP's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

10.5			First Amendment to Louisiana-Pacific 2019 Employee Stock Purchase Plan. Incorporated herein by reference to Exhibit 10.7 to LP's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

10.6			Amended and Restated Louisiana-Pacific Corporation Non-Employee Director Compensation Plan. Incorporated herein by reference to Exhibit 10.8 to LP's Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

31.1			Certifications of Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. *

31.2			Certifications of Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. *

32			Certifications pursuant to § 906 of the Sarbanes-Oxley Act of 2002. **

101.INS			XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.*

101.SCH			XBRL Taxonomy Extension Schema Document.*

101.CAL			XBRL Taxonomy Extension Calculation Linkbase Document.*

101.LAB			XBRL Taxonomy Extension Label Linkbase Document.*

101.PRE			XBRL Taxonomy Extension Presentation Linkbase Document.*

101.DEF			XBRL Taxonomy Extension Definition Linkbase Document.*

104			Cover Page Interactive Data File (embedded with Inline XBRL document and contained in Exhibit 101)*


		LOUISIANA-PACIFIC CORPORATION

Date:	August ~~4, 2021~~9, 2022	BY:	/S/ W. BRADLEY SOUTHERN
			W. Bradley Southern
			Chief Executive Officer

Date:	August ~~4, 2021~~9, 2022	BY:	/S/ ALAN J.M. HAUGHIE
			Alan J.M. Haughie
			Executive Vice President and
			Chief Financial Officer