Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2016shares | |
Entity Information [Line Items] | |
Entity Registrant Name | LOUISIANA-PACIFIC CORP |
Entity Central Index Key | 60,519 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 142,225,477 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 559.7 | $ 434.7 |
Restricted cash for bond redemption | 93.4 | 0 |
Receivables, net of allowance for doubtful accounts of $1.1 million at September 30, 2016 and December 31, 2015 | 138 | 96.4 |
Inventories | 227.1 | 222 |
Prepaid expenses and other current assets | 8.4 | 7 |
Current portion of notes receivable from assets sales | 410 | 0 |
Assets held for sale | 9.2 | 9 |
Total current assets | 1,445.8 | 769.1 |
Timber and timberlands | 50.6 | 53.1 |
Property, plant and equipment, at cost | 2,459.2 | 2,392.5 |
Accumulated depreciation | (1,603.9) | (1,530.1) |
Net property, plant and equipment | 855.3 | 862.4 |
Goodwill | 9.7 | 9.7 |
Notes receivable from asset sales | 22.2 | 432.2 |
Investments in and advance to affiliates | 7.4 | 7.7 |
Restricted cash | 15.1 | 14.3 |
Other assets | 22.4 | 23 |
Long-term deferred tax asset | 3.9 | 4.8 |
Total assets | 2,432.4 | 2,176.3 |
LIABILITIES AND EQUITY | ||
Current portion of long-term debt | 458.1 | 2.1 |
Accounts payable and accrued liabilities | 193.8 | 139.6 |
Current portion of contingency reserves | 1.3 | 1.3 |
Total current liabilities | 653.2 | 143 |
Long-term debt, excluding current portion | 374.3 | 751.8 |
Deferred income taxes | 86.8 | 99.5 |
Contingency reserves, excluding current portion | 14.6 | 15.5 |
Other long-term liabilities | 150.7 | 149.5 |
Stockholders' equity: | ||
Common stock, $1 par value, 200,000,000 shares authorized, 0, and 152,979,708 shares issued | 153.1 | 153 |
Additional paid-in capital | 475.7 | 496.5 |
Retained earnings | 848.1 | 724.2 |
Treasury stock, 0 shares and 9,995,456 shares, at cost | (189.6) | (210.6) |
Accumulated comprehensive loss | (134.5) | (146.1) |
Total stockholders' equity | 1,152.8 | 1,017 |
Total liabilities and stockholders' equity | $ 2,432.4 | $ 2,176.3 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 1.1 | $ 1 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net sales | $ 596.4 | $ 464.9 | $ 1,683.4 | $ 1,429.6 |
Operating costs and expenses: | ||||
Cost of sales | 442.6 | 416.2 | 1,301.2 | 1,287.4 |
Depreciation and amortization | 29.6 | 25.9 | 86 | 77.9 |
Selling and administrative | 47 | 38.3 | 135.8 | 114.9 |
Loss on sale or impairment of long-lived assets, net | 0.3 | 0.9 | 1 | 1.5 |
Other operating credits and charges, net | 0 | 1 | 11.4 | 12.6 |
Total operating costs and expenses | 519.5 | 482.3 | 1,535.4 | 1,494.3 |
Income (loss) from operations | 76.9 | (17.4) | 148 | (64.7) |
Non-operating income (expense): | ||||
Interest expense, net of capitalized interest | (9) | (8.4) | (26.3) | (23.1) |
Investment income | 2.5 | 0.5 | 6.4 | 2.9 |
Loss on early debt extinguishment | (13.2) | 0 | (13.2) | 0 |
Other non-operating items | (0.5) | (3.7) | 1.4 | (5.5) |
Total non-operating income (expense) | (20.2) | (11.6) | (31.7) | (25.7) |
Income (loss) from continuing operations before taxes and equity in income of unconsolidated affiliates | 56.7 | (29) | 116.3 | (90.4) |
Provision (benefit) for income taxes | (7.5) | (2.4) | 13.1 | (7.7) |
Equity in income of unconsolidated affiliates | (1.4) | (2) | (4.4) | (4.1) |
Income (loss) from continuing operations | 65.6 | (24.6) | 107.6 | (78.6) |
Loss from discontinued operations before taxes | 0 | (2.9) | 0 | (2.9) |
Benefit for income taxes | 0 | (1) | 0 | (1) |
Loss from discontinued operations | 0 | (1.9) | 0 | (1.9) |
Net Income (loss) | $ 65.6 | $ (26.5) | $ 107.6 | $ (80.5) |
Net income (loss) per share of common stock (basic): | ||||
Income (loss) from continuing operations | $ 0.46 | $ (0.17) | $ 0.75 | $ (0.55) |
Loss from discontinued operations | 0 | (0.02) | 0 | (0.02) |
Net income (loss) per share - basic | 0.46 | (0.19) | 0.75 | (0.57) |
Net income (loss) per share of common stock (diluted): | ||||
Income (loss) from continuing operations | 0.45 | (0.17) | 0.74 | (0.55) |
Loss from discontinued operations | 0 | (0.02) | 0 | (0.02) |
Net income (loss) per share - diluted | $ 0.45 | $ (0.19) | $ 0.74 | $ (0.57) |
Average shares of stock outstanding - basic | 143.7 | 142.6 | 143.3 | 142.3 |
Average shares of stock outstanding - diluted | 145.4 | 142.6 | 145.2 | 142.3 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Net Income (loss) | $ 65.6 | $ (26.5) | $ 107.6 | $ (80.5) |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | 0.1 | (12) | 10.3 | (19.9) |
Unrealized loss on investments, net of tax | (0.5) | (0.1) | (0.7) | (0.1) |
Defined benefit pension plans: | ||||
Change benefit obligations, translation adjustment | 0.1 | 1.2 | (0.6) | 1.7 |
Amortization of amounts included in net periodic benefit cost, net of tax | 0.9 | 1.2 | 2.6 | 3.3 |
Other | 0 | (0.1) | 0 | 0 |
Other comprehensive income (loss) | 0.6 | (9.8) | 11.6 | (15) |
Comprehensive income (loss) | 66.2 | (36.3) | 119.2 | (95.5) |
Actuarial loss, net of tax | ||||
Defined benefit pension plans: | ||||
Amortization of amounts included in net periodic benefit cost, net of tax | 0.9 | 1.1 | 2.5 | 3.1 |
Other comprehensive income (loss) | 1 | 2.3 | 1.9 | 4.8 |
Prior service cost, net of tax | ||||
Defined benefit pension plans: | ||||
Amortization of amounts included in net periodic benefit cost, net of tax | 0 | 0.1 | 0.1 | 0.2 |
Other comprehensive income (loss) | $ 0 | $ 0.1 | $ 0.1 | $ 0.2 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net Income (loss) | $ 65.6 | $ (26.5) | $ 107.6 | $ (80.5) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Depreciation and amortization | 29.6 | 25.9 | 86 | 77.9 |
Equity in income of unconsolidated affiliates, including dividends | 0 | (2) | 0.3 | (4.1) |
Loss on sale or impairment of long-lived assets, net | 0.3 | 0.9 | 1 | 1.5 |
Loss on early debt extinguishment | 13.2 | 0 | 13.2 | 0 |
Other operating credits and charges, net | 0 | 1 | 11.4 | 12.6 |
Stock-based compensation related to stock plans | 3.2 | 2.2 | 9.4 | 7.3 |
Exchange (gain) loss on remeasurement | (0.2) | 1.2 | (0.9) | 5.5 |
Cash settlements of contingencies, net of accruals | (0.3) | (1) | (1) | (0.5) |
Cash settlements of warranties, net of accruals | (4.6) | (0.3) | (11.4) | (5.7) |
Pension expense, net of contributions | 0 | 1.1 | 1.4 | 5.5 |
Non-cash interest expense, net | 1.4 | 0.8 | 1.6 | 0.7 |
Other adjustments, net | (0.3) | 0.5 | (0.3) | 1.3 |
(Increase) decrease in receivables | 14.1 | 0.6 | (37) | (16) |
(Increase) decrease in inventories | 4.8 | (8.5) | (3.2) | (5.4) |
(Increase) decrease in prepaid expenses | 0.7 | (1.8) | (1.9) | (1) |
Increase in accounts payable and accrued liabilities | 17 | 14.6 | 53.3 | 10.4 |
Increase (decrease) in income taxes | (9.2) | (7.5) | 4.6 | (10.8) |
Increase in other liabilities | 0.8 | 0 | 6.2 | 0 |
Net cash provided by (used in) operating activities | 136.1 | 1.2 | 240.3 | (1.3) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Property, plant, and equipment additions | (27.6) | (33.6) | (78.7) | (67.1) |
Investments in and refunds from joint ventures | 0 | 1.7 | 0 | 1.7 |
Increase in restricted cash under letters of credit/credit facility | 0.2 | (0.5) | (0.1) | (5.9) |
Increase in restricted cash for redemption of long-term debt | (93.4) | 0 | (93.4) | 0 |
Other investing activities | (0.1) | 0.1 | (0.2) | 0.5 |
Net cash used in investing activities | (120.9) | (32.3) | (172.4) | (70.8) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Borrowings of long-term debt | 350 | 0 | 350 | 0 |
Repayment of long-term debt | (274.8) | (0.8) | (282.7) | (2.2) |
Payment of debt issuance fees | (5) | 0 | (5) | 0 |
Sale of common stock, net of cash payments under equity plans | 0 | 0 | (0.1) | 0.4 |
Taxes paid related to net share settlement of equity awards | (0.8) | (0.1) | (8.9) | (5.4) |
Net cash used in financing activities | 69.4 | (0.9) | 53.3 | (7.2) |
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS | 0.3 | (1.3) | 3.8 | (5.7) |
Net increase (decrease) in cash and cash equivalents | 84.9 | (33.3) | 125 | (85) |
Cash and cash equivalents at beginning of period | 474.8 | 481 | 434.7 | 532.7 |
Cash and cash equivalents at end of period | $ 559.7 | $ 447.7 | $ 559.7 | $ 447.7 |
Basis For Presentation
Basis For Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis for Presentation | BASIS FOR PRESENTATION The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and, in the opinion of management, include all adjustments (consisting of normal recurring adjustments) necessary to present fairly, in all material respects, the consolidated financial position, results of operations and cash flows of LP and its subsidiaries for the interim periods presented. Results of operations for interim periods are not necessarily indicative of results to be expected for an entire year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in LP’s Annual Report on Form 10-K for the year ended December 31, 2015 . |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | STOCK-BASED COMPENSATION LP has a Management Incentive Plan (MIP) that is administered by the Compensation Committee of the Board of Directors. The Compensation Committee authorizes the grants of restricted stock, restricted stock units, performance share awards payable in stock upon the attainment of specified performance goals, stock options, stock settled stock appreciation rights (SSAR), other stock-based awards and cash-based awards at the discretion of the Compensation Committee. A detailed discussion of this is presented in Note 15 to the consolidated financial statements included in LP's Annual Report on Form 10-K for the fiscal year ended December 31, 2015. As of September 30, 2016 , 3.2 million shares were available for grant under the 2013 Omnibus Plan. Quarter Ended September 30, Nine Months Ended September 30, Dollar amounts in millions 2016 2015 2016 2015 Total stock-based compensation expense (costs of sales and general and administrative) $ 3.2 $ 2.2 $ 9.4 $ 7.3 Income tax benefit related to stock-based compensation $ (0.4 ) $ (3.2 ) Impact on cash flow due to taxes paid related to net share settlement of equity awards $ 0.8 $ 0.1 $ 8.9 $ 5.4 At September 30, 2016 , $ 12.7 million of compensation cost related to unvested restricted performance shares, restricted stock and SSARs attributable to future service had not yet been recognized. LP adopted Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-based Payment Accounting, as of January 1, 2016. This standard is required to be adopted using the modified retrospective approach. As such, LP recorded a cumulative-effect adjustment of $16.3 million during the quarter ended March 31, 2016 to increase LP's December 31, 2015 retained earnings and increase LP's December 31, 2015 deferred tax asset balance. Additionally, ASU 2016-09 addresses the presentation of excess tax benefits and employee taxes paid on the statement of cash flows. LP is now required to present excess tax benefits as an operating activity (combined with other income tax cash flows) on the statement of cash flows rather than as a financing activity, and LP has adopted this change prospectively. ASU 2016-09 also requires the presentation of employee taxes as a financing activity on the statement of cash flows, which is where LP has previously classified this item. Grants of awards During the first nine months of 2016, the Company granted 90,444 performance units at an average grant date fair value of $20.45 per share, 509,127 SSARs at an average grant date fair value of $6.99 per share and 451,795 restricted stock awards (shares or units) at an average grant date fair value of $16.00 per share. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS LP estimated its Senior Notes due in 2020 to have a fair value of $90.9 million at September 30, 2016 and $366.2 million at December 31, 2015 based upon market quotations. LP estimated its Senior Notes due in 2024 to have a fair value of $ 350.4 million at September 30, 2016 . 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. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | EARNINGS PER SHARE Basic earnings per share are based on the weighted-average number of shares of common stock outstanding. Diluted earnings per share are 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, SSARs, performance shares, incentive shares and warrants) be excluded from the calculation of diluted earnings per share for the periods in which LP recognizes losses from continuing operations or at such time that the exercise prices of such awards are in excess of the weighted average market price of LP's common stock during these periods because the effect is anti-dilutive. Dollar and share amounts in millions, except per share amounts Quarter Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Income (loss) from continuing operations $ 65.6 $ (24.6 ) $ 107.6 $ (78.6 ) Loss from discontinued operations — (1.9 ) — (1.9 ) Net income (loss) $ 65.6 $ (26.5 ) $ 107.6 $ (80.5 ) Denominator: Denominator for basic earnings per share: Weighted average common shares outstanding - basic 143.7 142.6 143.3 142.3 Effect of dilutive securities: Dilutive effect of stock warrants 0.2 — 0.2 — Dilutive effect of employee stock plans 1.5 — 1.7 — Dilutive potential common shares 1.7 — 1.9 — Denominator for diluted earnings per share: Weighted average shares outstanding - diluted 145.4 142.6 145.2 142.3 Basic earnings per share: Income (loss) from continuing operations $ 0.46 $ (0.17 ) $ 0.75 $ (0.55 ) Loss from discontinued operations — (0.02 ) — (0.02 ) Net income (loss) per share - basic $ 0.46 $ (0.19 ) $ 0.75 $ (0.57 ) Diluted earnings per share: Income (loss) from continuing operations $ 0.45 $ (0.17 ) $ 0.74 $ (0.55 ) Loss from discontinued operations — (0.02 ) — (0.02 ) Net income (loss) per share - diluted $ 0.45 $ (0.19 ) $ 0.74 $ (0.57 ) For the quarter and nine months ended September 30, 2016 , stock options, warrants and SSARs relating to approximately 2.2 million and 2.7 million shares of LP common stock were considered not in-the-money for purposes of LP's earnings per share calculation. For the quarter and nine months ended September 30, 2015 , stock options, warrants and SSARs relating to approximately 4.7 million and 5.0 million shares of LP common stock were considered anti-dilutive for purposes of LP's earnings per share calculation due to LP's loss position from continuing operations. At September 30, 2016 , outstanding warrants were exercisable to purchase approximately 227,129 shares. |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Receivables | RECEIVABLES Receivables consist of the following: Dollar amounts in millions September 30, 2016 December 31, 2015 Trade receivables $ 127.6 $ 82.6 Income tax receivable 3.6 2.0 Other receivables 7.9 12.8 Allowance for doubtful accounts (1.1 ) (1.0 ) Total $ 138.0 $ 96.4 Other receivables at September 30, 2016 and December 31, 2015 primarily consist of sales tax receivables, vendor rebates, interest receivables and other miscellaneous receivables. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories are valued at the lower of cost or market. Inventory cost includes materials, labor and operating overhead. The major types of inventories are as follows (work in process is not material): Dollar amounts in millions September 30, 2016 December 31, 2015 Logs $ 46.5 $ 58.6 Other raw materials 24.4 21.6 Semi-finished inventory 19.0 18.5 Finished products 137.2 123.3 Total $ 227.1 $ 222.0 |
Notes Receivable from Asset Sal
Notes Receivable from Asset Sales (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Receivables consist of the following: Dollar amounts in millions September 30, 2016 December 31, 2015 Trade receivables $ 127.6 $ 82.6 Income tax receivable 3.6 2.0 Other receivables 7.9 12.8 Allowance for doubtful accounts (1.1 ) (1.0 ) Total $ 138.0 $ 96.4 NOTE 7 – NOTES RECEIVABLE FROM ASSET SALES Notes receivable from asset sales are related to transactions that occurred during 1997, 1998 and 2003. The 1997 and 1998 notes receivable provide collateral for LP’s limited recourse notes payable and the 2003 notes receivable provide collateral for LP’s non-recourse notes payable (see Note 9). LP monitors the collectability of these notes on a regular basis. Dollar amounts in millions Interest Rate 2016 September 30, 2016 December 31, 2015 Notes receivable (secured), maturing 2018, interest rates fixed 7.3 % 22.2 22.2 Notes receivable (secured), maturing 2018 (accelerated for collection 2016), interest rates variable 410.0 410.0 Total 432.2 432.2 Current portion 410.0 — Long-term portion $ 22.2 $ 432.2 In August 2016, LP entered into agreements with the issuers of the $410.0 million notes receivable maturing in 2018 to provide for the acceleration of the collection of these notes to November 2016. This acceleration will also result in the acceleration of LP's payment of the related notes payable (see Note 9). |
Financing Receivables [Text Block] | Notes receivable from asset sales are related to transactions that occurred during 1997, 1998 and 2003. The 1997 and 1998 notes receivable provide collateral for LP’s limited recourse notes payable and the 2003 notes receivable provide collateral for LP’s non-recourse notes payable (see Note 9). LP monitors the collectability of these notes on a regular basis. Dollar amounts in millions Interest Rate 2016 September 30, 2016 December 31, 2015 Notes receivable (secured), maturing 2018, interest rates fixed 7.3 % 22.2 22.2 Notes receivable (secured), maturing 2018 (accelerated for collection 2016), interest rates variable 410.0 410.0 Total 432.2 432.2 Current portion 410.0 — Long-term portion $ 22.2 $ 432.2 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Accounting standards state that companies account for income taxes using the asset and liability approach, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. This method also requires the recognition of future tax benefits, such as net operating loss carryforwards and other tax credits. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. Valuation allowances are recorded as necessary to reduce deferred tax assets to the amount thereof that is more likely than not to be realized. The likelihood of realizing deferred tax assets is evaluated by, among other things, estimating future taxable income, considering the future reversal of existing deferred tax liabilities to which the deferred tax assets may be applied and assessing the impact of tax planning strategies. For interim periods, accounting standards require that income tax expense be determined 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. An exception is provided for situations in which an enterprise anticipates a loss in a separate jurisdiction for which no tax benefit can be recognized. For the nine months ended September 30, 2015 , LP's overall estimated annual effective tax rate was computed by excluding anticipated losses in Canada for which no deferred tax asset was expected to be recognizable due to the need for valuation allowances. Tax benefit for the period was then computed using the rate so derived applied to year-to-date pre-tax losses excluding those from Canada, and no additional Canadian tax benefit was added. 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 to the current quarter. Changes in the profitability estimates in various jurisdictions will impact our quarterly effective income tax rates. For the first nine months of 2016 , the primary differences between the U.S. statutory rate of 35% and the effective rate applicable to LP’s continuing operations relate to foreign tax rates, changes in Canadian and state valuation allowances, excess tax benefits in connection with LP's stock-based compensation plans, recognition of research and development credits from prior years and an increase in the reserve for unrecognized tax benefits associated with LP's South American operations. For the first nine months of 2015 , the primary differences between the U.S. statutory rate of 35% and the effective rate applicable to LP’s continuing operations relate to foreign tax rates, Canadian and state valuation allowances and a reduction in the reserve for unrecognized tax benefits. During September 2016, LP announced the acceleration of the notes receivable from asset sales (see Note 7) to November of 2016 from 2018. The acceleration of these notes will accelerate the taxable income into the fourth quarter 2016. LP estimates taxes due to the acceleration to be $ 120.8 million . As of December 31, 2015, LP had $ 73.4 million of available carryover benefit to offset a portion of LP’s 2016 tax liability. LP periodically reviews the need for valuation allowances against deferred tax assets and recognizes these deferred tax assets to the extent that the realization is more likely than not. As part of our review, we consider all positive and negative evidence, including earnings history, the future reversal of deferred tax liabilities, and the relevant expirations of carry forwards. LP believes that the valuation allowances provided are appropriate. If in future periods our earnings estimates differ from the estimates used to establish these valuation allowances, or other objective positive or negative evidence arises, LP may be required to record an adjustment resulting in an impact on tax expense (benefit) for that period. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Dollar amounts in millions September 30, 2016 December 31, 2015 Interest Rate 2016 Principal Unamortized Debt Costs Total Principal Unamortized Debt Costs Total Senior Notes: Senior unsecured notes, maturing 2020 (to be redeemed in 2016), interest rates fixed 7.5 % $ 87.6 $ (0.7 ) $ 86.9 $ 350.0 $ (3.7 ) $ 346.3 Senior unsecured notes, maturing 2024, interest rates fixed 4.875 % 350.0 (5.2 ) 344.8 Bank credit facilities: Chilean term credit facility, maturing 2019, interest rates fixed UF+3.9% 7.0 (0.3 ) 6.7 12.8 12.8 Brazilian export financing facility, maturing 2017, interest rates fixed 6.65 % 2.0 2.0 4.0 4.0 Limited recourse notes payable: Senior notes, payable 2018, interest rates fixed 7.3 % 22.0 22.0 22.0 22.0 Other financing: Non-recourse notes payable 2018 (accelerated for repayment 2016), interest rates variable 0.5 % 368.7 (0.1 ) 368.6 368.7 (0.2 ) 368.5 Other 1.4 1.4 0.3 0.3 Total 838.7 (6.3 ) 832.4 757.8 (3.9 ) 753.9 Less: current portion of long term debt (458.9 ) 0.8 (458.1 ) (2.1 ) (2.1 ) Net long-term portion $ 379.8 $ (5.5 ) $ 374.3 $ 755.7 $ (3.9 ) $ 751.8 LP issued $368.7 million of non-recourse notes in 2003 in a private placement to unrelated third parties. The notes were originally scheduled to mature in 2018. The notes are supported by a bank letter of credit. LP’s reimbursement obligations under the letter of credit are secured by $ 410.0 million in notes receivable (see note 7). In August 2016, LP gave a binding notice to the note holder that LP will pay the notes ($ 368.6 million , net of $ 0.1 million of unamortized debt costs) plus accrued interest upon receipt of the proceeds for the notes receivable in November 2016. In May 2012, LP issued $ 350.0 million aggregate principal amount of 7.5% Senior Notes due 2020. In September 2016, LP announced the commencement of a cash tender offer for any and all of its outstanding 7.5% Senior Notes due 2020 for a purchase price of $1,041.75 for each $1,000 principal amount of 2020 Notes. As of September 30, 2016, LP purchased $262.4 million aggregate principal amount (or approximately 75%) of the Notes. The remaining notes ( $86.9 million , net of $ 0.7 million of unamortized debt costs) plus accrued interest were redeemed in October 2016. The cash required to redeem these notes (including any premium and interest) is classified as Restricted cash for bond redemption on LP's Consolidated Balance Sheet as of September 30, 2016 . In connection with this repurchase, LP recorded a loss on early debt extinguishment of $13.2 million , which included $ 2.2 million associated with the unamortized financing costs associated with these notes. In September 2016, LP issued $ 350.0 million aggregate principal of 4.875% Senior Notes due 2024. On or after September 15, 2019, LP may, at its option on one or more occasions, redeem all or any portion of these notes at specified redemption rates. Obligations under the indenture governing LP's notes are unsecured and not presently guaranteed by any of LP's subsidiaries. The indenture contains customary covenants applicable to LP and its subsidiaries, other than certain unrestricted subsidiaries, including restrictions on actions and activities that are restricted under the credit facility. The indenture also contains customary events of default, the occurrence of which could result in acceleration of LP's obligations to repay the indebtedness outstanding thereunder. Additional descriptions of LP's indebtedness are included in the consolidated financial statements and the notes thereto included in LP's Annual Report on Form 10-K for the year ended December 31, 2015 . |
Other Operating Credits and Cha
Other Operating Credits and Charges, Net | 9 Months Ended |
Sep. 30, 2016 | |
Other Operating Credits And Charges, Net [Abstract] | |
Other Operating Credits and Charges Net [Table Text Block] | OTHER OPERATING CREDITS AND CHARGES During the second quarter of 2016, LP recorded an expense of $ 11.4 million related to an increase in product related warranty reserves and a related adjustment to value added taxes associated with CanExel products sold in specific geographic locations and for a specific time period. During the first quarter of 2015, LP was notified by the Ministry of Forestry in Quebec that LP's forest license associated with an indefinitely curtailed Oriented Stand Board (OSB) mill in Quebec has been terminated. Based upon this notification, LP was required to write off the remaining unamortized value associated with this intangible forest license of $ 11.6 million . During the third quarter of 2015, LP recorded a loss of $ 1.0 million associated with a marketing settlement with a customer. |
Legal and Environmental Matters
Legal and Environmental Matters | 9 Months Ended |
Sep. 30, 2016 | |
Legal and Environmental Matters [Abstract] | |
Legal and Environmental Matters | LEGAL AND ENVIRONMENTAL MATTERS Certain environmental matters and legal proceedings are discussed below. Environmental Matters LP maintains 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. LP’s estimates of its environmental loss contingencies are based on various assumptions and judgments, the specific nature of which varies in light of 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 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. LP regularly monitors its estimated exposure to environmental loss contingencies and, as additional information becomes known, may change its estimates significantly. However, no estimate of the range of any such change can be made at this time. Other Proceedings LP and its subsidiaries are parties to other legal proceedings. Based on the information currently available, management believes that the resolution of such proceedings will not have a material adverse effect on the financial position, results of operations, cash flows or liquidity of LP. |
Selected Segment Data
Selected Segment Data | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Selected Segment Data | SELECTED SEGMENT DATA LP operates in four segments: North America Oriented Strand Board (OSB), Siding, Engineered Wood Products (EWP) and South America. LP’s business units have been aggregated into these four segments based upon the similarity of economic characteristics, customers and distribution methods. LP’s 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. Segment information was prepared in accordance with the same accounting principles as those described in Note 1 of the Notes to the financial statements included in LP’s Annual Report on Form 10-K for the year ended December 31, 2015 . Quarter Ended September 30, Nine Months Ended September 30, Dollar amounts in millions 2016 2015 2016 2015 Net Sales OSB $ 282.1 $ 200.0 $ 751.9 $ 601.2 Siding 194.8 157.8 583.3 495.2 EWP 80.7 74.4 230.5 211.2 South America 31.7 26.8 103.2 101.4 Other 7.6 6.8 20.3 21.5 Intersegment Sales (0.5 ) (0.9 ) (5.8 ) (0.9 ) $ 596.4 $ 464.9 $ 1,683.4 $ 1,429.6 Operating profit (loss): OSB $ 67.4 $ (11.1 ) $ 126.7 $ (57.6 ) Siding 35.2 17.2 103.9 79.3 EWP — (0.9 ) (2.0 ) (7.3 ) South America 3.3 2.4 15.3 6.8 Other (0.4 ) (0.6 ) (1.0 ) (2.5 ) Other operating credits and charges, net — (1.0 ) (11.4 ) (12.6 ) Loss on sale or impairment of long-lived assets, net (0.3 ) (0.9 ) (1.0 ) (1.5 ) General corporate and other expenses, net (26.9 ) (20.5 ) (78.1 ) (65.2 ) Interest expense, net of capitalized interest (9.0 ) (8.4 ) (26.3 ) (23.1 ) Investment income 2.5 0.5 6.4 2.9 Loss on early debt extinguishment (13.2 ) — (13.2 ) — Other non-operating items (0.5 ) (3.7 ) 1.4 (5.5 ) Income (loss) from continuing operations before taxes 58.1 (27.0 ) 120.7 (86.3 ) Provision (benefit) for income taxes (7.5 ) (2.4 ) 13.1 (7.7 ) Income (loss) from continuing operations $ 65.6 $ (24.6 ) $ 107.6 $ (78.6 ) |
Potential Impairments
Potential Impairments | 9 Months Ended |
Sep. 30, 2016 | |
Asset Impairment Charges [Abstract] | |
Potential Impairments | POTENTIAL IMPAIRMENTS LP continues to review certain operations and investments for potential impairments. LP’s management currently believes it has adequate support for the carrying value of each of these operations and investments based upon the anticipated cash flows that result from estimates of future demand, pricing and production costs assuming certain levels of planned capital expenditures. LP also reviews from time to time possible dispositions of various assets in light of current and anticipated economic and industry conditions, its strategic plan and other relevant circumstances. 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, LP may be required to record impairment charges in connection with decisions to dispose of assets. |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Compensation and Employee Benefit Plans | DEFINED BENEFIT PENSION PLANS The following table sets forth the net periodic pension cost for LP’s defined benefit pension plans during the quarter and nine months ended September 30, 2016 and 2015 . The net periodic pension cost included the following components: Quarter Ended September 30, Nine Months Ended September 30, Dollar amounts in millions 2016 2015 2016 2015 Service cost $ 1.2 $ 1.0 $ 3.6 $ 3.1 Interest cost 3.3 3.4 10.1 10.2 Expected return on plan assets (3.3 ) (3.8 ) (10.0 ) (11.4 ) Amortization of prior service cost 1 0.1 0.1 0.3 0.3 Amortization of net loss 1 1.4 1.7 4.1 5.2 Net periodic pension cost $ 2.7 $ 2.4 $ 8.1 $ 7.4 Loss due to settlement $ — $ 0.4 $ — $ 0.4 1 The amortization of prior service costs and net loss are included in the amounts reclassified from accumulated other comprehensive income (loss); see Note 16 for additional details. The net periodic pension cost is included in Cost of sales and Selling and administrative expense in the Consolidated Statements of Income. During the nine months ended September 30, 2016 and 2015 , LP recognized $ 8.1 million and $ 7.8 million (inclusive of a $ 0.4 million settlement loss associated with the retirement of one of LP's executives) of pension expense for all of LP's defined benefit pension plans. During the nine months ended September 30, 2016 , LP made $6.7 million in pension contributions to its defined benefit pension plans. LP expects to contribute between $1.0 million and $3.0 million to its defined benefit pension plans in the remaining months of 2016. |
Product Warranty
Product Warranty | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Indemnifications | LP provides warranties on the sale of most of its products and records 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 quarter and nine months ended September 30, 2016 and 2015 are summarized in the following table: Quarter Ended September 30, Nine Months Ended September 30, Dollar amounts in millions 2016 2015 2016 2015 Beginning balance $ 25.6 $ 25.0 $ 21.0 $ 31.4 Accrued to expense 0.2 2.6 0.6 2.9 Accrued to other operating credits and charges — — 10.9 — Foreign currency translation 0.1 0.8 0.6 (0.2 ) Payments made (4.8 ) (2.9 ) (12.0 ) (8.6 ) Total warranty reserves 21.1 25.5 21.1 25.5 Current portion of warranty reserves (9.0 ) (10.0 ) (9.0 ) (10.0 ) Long-term portion of warranty reserves $ 12.1 $ 15.5 $ 12.1 $ 15.5 LP continues to monitor warranty and other claims associated with these products and believes as of September 30, 2016 that the reserves associated with these matters are adequate. However, it is possible that additional charges may be required in the future. The current portion of the warranty reserve is included in the caption “Accounts payable and accrued liabilities” and the long-term portion is included in the caption “Other long-term liabilities” on LP’s Consolidated Balance Sheets. |
Other Comprehensive Income Othe
Other Comprehensive Income Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | NOTE 16 - OTHER COMPREHENSIVE INCOME Other comprehensive income activity, net of tax, is provided in the following table for the quarter and nine months ended September 30, 2016 : Pension Adjustments Dollar amounts in millions Foreign currency translation adjustments Actuarial losses Prior service costs Unrealized gain (loss) on investments Other Total Balance at June 30, 2016 $ (44.9 ) $ (86.9 ) $ (5.4 ) $ 3.1 $ (1.0 ) $ (135.1 ) Other comprehensive income (loss) before reclassifications 0.1 0.1 — (0.8 ) — (0.6 ) Income taxes — — — 0.3 — 0.3 Net other comprehensive income (loss) before reclassifications 0.1 0.1 — (0.5 ) — (0.3 ) Amounts reclassified from accumulated comprehensive income (loss) — 1.4 0.1 — — 1.5 Income taxes — (0.5 ) (0.1 ) — — (0.6 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 0.9 — — — 0.9 Total other comprehensive income (loss) 0.1 1.0 — (0.5 ) — 0.6 Balance at September 30, 2016 $ (44.8 ) $ (85.9 ) $ (5.4 ) $ 2.6 $ (1.0 ) $ (134.5 ) Pension Adjustments Dollar amounts in millions Foreign currency translation adjustments Actuarial losses Prior service costs Unrealized gain (loss) on investments Other Total Balance at December 31, 2015 $ (55.1 ) $ (87.8 ) $ (5.5 ) $ 3.3 $ (1.0 ) $ (146.1 ) Other comprehensive income (loss) before reclassifications 10.3 (0.6 ) — (1.1 ) — 8.6 Income taxes — — — 0.4 — 0.4 Net other comprehensive income (loss) before reclassifications 10.3 (0.6 ) — (0.7 ) — 9.0 Amounts reclassified from accumulated other comprehensive income (loss) — 4.1 0.3 — — 4.4 Income taxes — (1.6 ) (0.2 ) — — (1.8 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 2.5 0.1 — — 2.6 Total other comprehensive income (loss) 10.3 1.9 0.1 (0.7 ) — 11.6 Balance at September 30, 2016 $ (44.8 ) $ (85.9 ) $ (5.4 ) $ 2.6 $ (1.0 ) $ (134.5 ) Other comprehensive income activity, net of tax, is provided in the following table for the quarter and nine months ended September 30, 2015 : Pension Adjustments Dollar amounts in millions Foreign currency translation adjustments Actuarial losses Prior service costs Unrealized gain (loss) on investments Other Total Balance at June 30, 2015 $ (41.6 ) $ (90.6 ) $ (5.8 ) $ 2.6 $ (1.1 ) $ (136.5 ) Other comprehensive income (loss) before reclassifications (12.0 ) 1.2 — (0.2 ) (0.1 ) (11.1 ) Income taxes — — — 0.1 — 0.1 Net other comprehensive income (loss) before reclassifications (12.0 ) 1.2 — (0.1 ) (0.1 ) (11.0 ) Amounts reclassified from accumulated other comprehensive income (loss) — 1.8 0.1 — — 1.9 Income taxes — (0.7 ) — — — (0.7 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 1.1 0.1 — — 1.2 Total other comprehensive income (loss) (12.0 ) 2.3 0.1 (0.1 ) (0.1 ) (9.8 ) Balance at September 30, 2015 $ (53.6 ) $ (88.3 ) $ (5.7 ) $ 2.5 $ (1.2 ) $ (146.3 ) Pension Adjustments Dollar amounts in millions Foreign currency translation adjustments Actuarial losses Prior service costs Unrealized gain (loss) on investments Other Total Balance at December 31, 2014 $ (33.7 ) $ (93.1 ) $ (5.9 ) $ 2.6 $ (1.2 ) $ (131.3 ) Other comprehensive income (loss) before reclassifications (19.9 ) 1.7 — (0.2 ) — (18.4 ) Income taxes — — — 0.1 — 0.1 Net other comprehensive income (loss) before reclassifications (19.9 ) 1.7 — (0.1 ) — (18.3 ) Amounts reclassified from accumulated other comprehensive income (loss) — 5.2 0.3 — — 5.5 Income taxes — (2.1 ) (0.1 ) — — (2.2 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 3.1 0.2 — — 3.3 Total other comprehensive income (loss) (19.9 ) 4.8 0.2 (0.1 ) — (15.0 ) Balance at September 30, 2015 $ (53.6 ) $ (88.3 ) $ (5.7 ) $ 2.5 $ (1.2 ) $ (146.3 ) The amounts reclassified from accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost; see Note 14 for additional details. The net periodic pension cost is included in Cost of sales and Selling and administrative expense in the Consolidated Statements of Income. |
Recent and Prospective Accounti
Recent and Prospective Accounting Pronouncements (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | RECENT AND PROSPECTIVE ACCOUNTING PRONOUNCEMENTS In March 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, "Leases (Topic 842)", which supersedes the lease accounting requirements in Accounting Standards Codification (ASC) Topic 840, Leases. The new standard requires entities to recognize, separately from each other, an asset for its right to use (ROU) the underlying asset equal to the liability for its finance and operating lease obligations. Further, the entity is required to present separately the current and non-current portion of the ROU asset and corresponding lease liability. The new standard is effective on January 1, 2019. LP is currently evaluating the effect that adopting this new accounting guidance will have on its consolidated results of operations and financial position. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classifications of Certain Cash Receipts and Cash Payments." The standard provided guidance for eight changes with respect to how cash receipts and cash payments are classified in the statement of cash flows, with the objective of reducing diversity in practice. The standard is effective January 1, 2018, with early adoption permitted. LP does not expect the adoption of this new standard to have a material impact on its consolidated results of operations and financial position. |
Subsequent Events (Notes)
Subsequent Events (Notes) | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 18 - SUBSEQUENT EVENTS On October 14, 2016 , LP completed the previously announced redemption of its remaining outstanding 7.500% Senior Notes due 2020 at the redemption price of 103.75% of the principal amount thereof, plus accrued and unpaid interest to, but excluding, the redemption date. This resulted in LP releasing $ 93.4 million currently held as restricted cash for bond redemption. LP will record $ 4.0 million in loss on early debt extinguishment associated with this redemption, including $ 0.7 million in deferred debt costs, during the fourth quarter. On October 28, 2016 LP announced that it has reached an agreement with Norbord Inc. to exchange OSB mills in Quebec, Canada. LP will swap ownership of its Chambord, Quebec, mill for Norbord’s Val-d’Or, Quebec, mill. The asset exchange is expected to be complete in early November 2016. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Quarter Ended September 30, Nine Months Ended September 30, Dollar amounts in millions 2016 2015 2016 2015 Total stock-based compensation expense (costs of sales and general and administrative) $ 3.2 $ 2.2 $ 9.4 $ 7.3 Income tax benefit related to stock-based compensation $ (0.4 ) $ (3.2 ) Impact on cash flow due to taxes paid related to net share settlement of equity awards $ 0.8 $ 0.1 $ 8.9 $ 5.4 |
Earnings per Share (Tables) (Ta
Earnings per Share (Tables) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic earnings per share are based on the weighted-average number of shares of common stock outstanding. Diluted earnings per share are 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, SSARs, performance shares, incentive shares and warrants) be excluded from the calculation of diluted earnings per share for the periods in which LP recognizes losses from continuing operations or at such time that the exercise prices of such awards are in excess of the weighted average market price of LP's common stock during these periods because the effect is anti-dilutive. Dollar and share amounts in millions, except per share amounts Quarter Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Income (loss) from continuing operations $ 65.6 $ (24.6 ) $ 107.6 $ (78.6 ) Loss from discontinued operations — (1.9 ) — (1.9 ) Net income (loss) $ 65.6 $ (26.5 ) $ 107.6 $ (80.5 ) Denominator: Denominator for basic earnings per share: Weighted average common shares outstanding - basic 143.7 142.6 143.3 142.3 Effect of dilutive securities: Dilutive effect of stock warrants 0.2 — 0.2 — Dilutive effect of employee stock plans 1.5 — 1.7 — Dilutive potential common shares 1.7 — 1.9 — Denominator for diluted earnings per share: Weighted average shares outstanding - diluted 145.4 142.6 145.2 142.3 Basic earnings per share: Income (loss) from continuing operations $ 0.46 $ (0.17 ) $ 0.75 $ (0.55 ) Loss from discontinued operations — (0.02 ) — (0.02 ) Net income (loss) per share - basic $ 0.46 $ (0.19 ) $ 0.75 $ (0.57 ) Diluted earnings per share: Income (loss) from continuing operations $ 0.45 $ (0.17 ) $ 0.74 $ (0.55 ) Loss from discontinued operations — (0.02 ) — (0.02 ) Net income (loss) per share - diluted $ 0.45 $ (0.19 ) $ 0.74 $ (0.57 ) |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Receivables consist of the following: Dollar amounts in millions September 30, 2016 December 31, 2015 Trade receivables $ 127.6 $ 82.6 Income tax receivable 3.6 2.0 Other receivables 7.9 12.8 Allowance for doubtful accounts (1.1 ) (1.0 ) Total $ 138.0 $ 96.4 NOTE 7 – NOTES RECEIVABLE FROM ASSET SALES Notes receivable from asset sales are related to transactions that occurred during 1997, 1998 and 2003. The 1997 and 1998 notes receivable provide collateral for LP’s limited recourse notes payable and the 2003 notes receivable provide collateral for LP’s non-recourse notes payable (see Note 9). LP monitors the collectability of these notes on a regular basis. Dollar amounts in millions Interest Rate 2016 September 30, 2016 December 31, 2015 Notes receivable (secured), maturing 2018, interest rates fixed 7.3 % 22.2 22.2 Notes receivable (secured), maturing 2018 (accelerated for collection 2016), interest rates variable 410.0 410.0 Total 432.2 432.2 Current portion 410.0 — Long-term portion $ 22.2 $ 432.2 In August 2016, LP entered into agreements with the issuers of the $410.0 million notes receivable maturing in 2018 to provide for the acceleration of the collection of these notes to November 2016. This acceleration will also result in the acceleration of LP's payment of the related notes payable (see Note 9). |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The major types of inventories are as follows (work in process is not material): Dollar amounts in millions September 30, 2016 December 31, 2015 Logs $ 46.5 $ 58.6 Other raw materials 24.4 21.6 Semi-finished inventory 19.0 18.5 Finished products 137.2 123.3 Total $ 227.1 $ 222.0 |
Notes Receivable from Asset S29
Notes Receivable from Asset Sales (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Receivables consist of the following: Dollar amounts in millions September 30, 2016 December 31, 2015 Trade receivables $ 127.6 $ 82.6 Income tax receivable 3.6 2.0 Other receivables 7.9 12.8 Allowance for doubtful accounts (1.1 ) (1.0 ) Total $ 138.0 $ 96.4 NOTE 7 – NOTES RECEIVABLE FROM ASSET SALES Notes receivable from asset sales are related to transactions that occurred during 1997, 1998 and 2003. The 1997 and 1998 notes receivable provide collateral for LP’s limited recourse notes payable and the 2003 notes receivable provide collateral for LP’s non-recourse notes payable (see Note 9). LP monitors the collectability of these notes on a regular basis. Dollar amounts in millions Interest Rate 2016 September 30, 2016 December 31, 2015 Notes receivable (secured), maturing 2018, interest rates fixed 7.3 % 22.2 22.2 Notes receivable (secured), maturing 2018 (accelerated for collection 2016), interest rates variable 410.0 410.0 Total 432.2 432.2 Current portion 410.0 — Long-term portion $ 22.2 $ 432.2 In August 2016, LP entered into agreements with the issuers of the $410.0 million notes receivable maturing in 2018 to provide for the acceleration of the collection of these notes to November 2016. This acceleration will also result in the acceleration of LP's payment of the related notes payable (see Note 9). |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Dollar amounts in millions September 30, 2016 December 31, 2015 Interest Rate 2016 Principal Unamortized Debt Costs Total Principal Unamortized Debt Costs Total Senior Notes: Senior unsecured notes, maturing 2020 (to be redeemed in 2016), interest rates fixed 7.5 % $ 87.6 $ (0.7 ) $ 86.9 $ 350.0 $ (3.7 ) $ 346.3 Senior unsecured notes, maturing 2024, interest rates fixed 4.875 % 350.0 (5.2 ) 344.8 Bank credit facilities: Chilean term credit facility, maturing 2019, interest rates fixed UF+3.9% 7.0 (0.3 ) 6.7 12.8 12.8 Brazilian export financing facility, maturing 2017, interest rates fixed 6.65 % 2.0 2.0 4.0 4.0 Limited recourse notes payable: Senior notes, payable 2018, interest rates fixed 7.3 % 22.0 22.0 22.0 22.0 Other financing: Non-recourse notes payable 2018 (accelerated for repayment 2016), interest rates variable 0.5 % 368.7 (0.1 ) 368.6 368.7 (0.2 ) 368.5 Other 1.4 1.4 0.3 0.3 Total 838.7 (6.3 ) 832.4 757.8 (3.9 ) 753.9 Less: current portion of long term debt (458.9 ) 0.8 (458.1 ) (2.1 ) (2.1 ) Net long-term portion $ 379.8 $ (5.5 ) $ 374.3 $ 755.7 $ (3.9 ) $ 751.8 |
Selected Segment Data (Tables)
Selected Segment Data (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Quarter Ended September 30, Nine Months Ended September 30, Dollar amounts in millions 2016 2015 2016 2015 Net Sales OSB $ 282.1 $ 200.0 $ 751.9 $ 601.2 Siding 194.8 157.8 583.3 495.2 EWP 80.7 74.4 230.5 211.2 South America 31.7 26.8 103.2 101.4 Other 7.6 6.8 20.3 21.5 Intersegment Sales (0.5 ) (0.9 ) (5.8 ) (0.9 ) $ 596.4 $ 464.9 $ 1,683.4 $ 1,429.6 Operating profit (loss): OSB $ 67.4 $ (11.1 ) $ 126.7 $ (57.6 ) Siding 35.2 17.2 103.9 79.3 EWP — (0.9 ) (2.0 ) (7.3 ) South America 3.3 2.4 15.3 6.8 Other (0.4 ) (0.6 ) (1.0 ) (2.5 ) Other operating credits and charges, net — (1.0 ) (11.4 ) (12.6 ) Loss on sale or impairment of long-lived assets, net (0.3 ) (0.9 ) (1.0 ) (1.5 ) General corporate and other expenses, net (26.9 ) (20.5 ) (78.1 ) (65.2 ) Interest expense, net of capitalized interest (9.0 ) (8.4 ) (26.3 ) (23.1 ) Investment income 2.5 0.5 6.4 2.9 Loss on early debt extinguishment (13.2 ) — (13.2 ) — Other non-operating items (0.5 ) (3.7 ) 1.4 (5.5 ) Income (loss) from continuing operations before taxes 58.1 (27.0 ) 120.7 (86.3 ) Provision (benefit) for income taxes (7.5 ) (2.4 ) 13.1 (7.7 ) Income (loss) from continuing operations $ 65.6 $ (24.6 ) $ 107.6 $ (78.6 ) |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The net periodic pension cost included the following components: Quarter Ended September 30, Nine Months Ended September 30, Dollar amounts in millions 2016 2015 2016 2015 Service cost $ 1.2 $ 1.0 $ 3.6 $ 3.1 Interest cost 3.3 3.4 10.1 10.2 Expected return on plan assets (3.3 ) (3.8 ) (10.0 ) (11.4 ) Amortization of prior service cost 1 0.1 0.1 0.3 0.3 Amortization of net loss 1 1.4 1.7 4.1 5.2 Net periodic pension cost $ 2.7 $ 2.4 $ 8.1 $ 7.4 Loss due to settlement $ — $ 0.4 $ — $ 0.4 |
Product Warranty (Tables)
Product Warranty (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The activity in warranty reserves for the quarter and nine months ended September 30, 2016 and 2015 are summarized in the following table: Quarter Ended September 30, Nine Months Ended September 30, Dollar amounts in millions 2016 2015 2016 2015 Beginning balance $ 25.6 $ 25.0 $ 21.0 $ 31.4 Accrued to expense 0.2 2.6 0.6 2.9 Accrued to other operating credits and charges — — 10.9 — Foreign currency translation 0.1 0.8 0.6 (0.2 ) Payments made (4.8 ) (2.9 ) (12.0 ) (8.6 ) Total warranty reserves 21.1 25.5 21.1 25.5 Current portion of warranty reserves (9.0 ) (10.0 ) (9.0 ) (10.0 ) Long-term portion of warranty reserves $ 12.1 $ 15.5 $ 12.1 $ 15.5 |
Other Comprehensive Income Ot34
Other Comprehensive Income Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Pension Adjustments Dollar amounts in millions Foreign currency translation adjustments Actuarial losses Prior service costs Unrealized gain (loss) on investments Other Total Balance at June 30, 2016 $ (44.9 ) $ (86.9 ) $ (5.4 ) $ 3.1 $ (1.0 ) $ (135.1 ) Other comprehensive income (loss) before reclassifications 0.1 0.1 — (0.8 ) — (0.6 ) Income taxes — — — 0.3 — 0.3 Net other comprehensive income (loss) before reclassifications 0.1 0.1 — (0.5 ) — (0.3 ) Amounts reclassified from accumulated comprehensive income (loss) — 1.4 0.1 — — 1.5 Income taxes — (0.5 ) (0.1 ) — — (0.6 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 0.9 — — — 0.9 Total other comprehensive income (loss) 0.1 1.0 — (0.5 ) — 0.6 Balance at September 30, 2016 $ (44.8 ) $ (85.9 ) $ (5.4 ) $ 2.6 $ (1.0 ) $ (134.5 ) Pension Adjustments Dollar amounts in millions Foreign currency translation adjustments Actuarial losses Prior service costs Unrealized gain (loss) on investments Other Total Balance at December 31, 2015 $ (55.1 ) $ (87.8 ) $ (5.5 ) $ 3.3 $ (1.0 ) $ (146.1 ) Other comprehensive income (loss) before reclassifications 10.3 (0.6 ) — (1.1 ) — 8.6 Income taxes — — — 0.4 — 0.4 Net other comprehensive income (loss) before reclassifications 10.3 (0.6 ) — (0.7 ) — 9.0 Amounts reclassified from accumulated other comprehensive income (loss) — 4.1 0.3 — — 4.4 Income taxes — (1.6 ) (0.2 ) — — (1.8 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 2.5 0.1 — — 2.6 Total other comprehensive income (loss) 10.3 1.9 0.1 (0.7 ) — 11.6 Balance at September 30, 2016 $ (44.8 ) $ (85.9 ) $ (5.4 ) $ 2.6 $ (1.0 ) $ (134.5 ) Other comprehensive income activity, net of tax, is provided in the following table for the quarter and nine months ended September 30, 2015 : Pension Adjustments Dollar amounts in millions Foreign currency translation adjustments Actuarial losses Prior service costs Unrealized gain (loss) on investments Other Total Balance at June 30, 2015 $ (41.6 ) $ (90.6 ) $ (5.8 ) $ 2.6 $ (1.1 ) $ (136.5 ) Other comprehensive income (loss) before reclassifications (12.0 ) 1.2 — (0.2 ) (0.1 ) (11.1 ) Income taxes — — — 0.1 — 0.1 Net other comprehensive income (loss) before reclassifications (12.0 ) 1.2 — (0.1 ) (0.1 ) (11.0 ) Amounts reclassified from accumulated other comprehensive income (loss) — 1.8 0.1 — — 1.9 Income taxes — (0.7 ) — — — (0.7 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 1.1 0.1 — — 1.2 Total other comprehensive income (loss) (12.0 ) 2.3 0.1 (0.1 ) (0.1 ) (9.8 ) Balance at September 30, 2015 $ (53.6 ) $ (88.3 ) $ (5.7 ) $ 2.5 $ (1.2 ) $ (146.3 ) Pension Adjustments Dollar amounts in millions Foreign currency translation adjustments Actuarial losses Prior service costs Unrealized gain (loss) on investments Other Total Balance at December 31, 2014 $ (33.7 ) $ (93.1 ) $ (5.9 ) $ 2.6 $ (1.2 ) $ (131.3 ) Other comprehensive income (loss) before reclassifications (19.9 ) 1.7 — (0.2 ) — (18.4 ) Income taxes — — — 0.1 — 0.1 Net other comprehensive income (loss) before reclassifications (19.9 ) 1.7 — (0.1 ) — (18.3 ) Amounts reclassified from accumulated other comprehensive income (loss) — 5.2 0.3 — — 5.5 Income taxes — (2.1 ) (0.1 ) — — (2.2 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 3.1 0.2 — — 3.3 Total other comprehensive income (loss) (19.9 ) 4.8 0.2 (0.1 ) — (15.0 ) Balance at September 30, 2015 $ (53.6 ) $ (88.3 ) $ (5.7 ) $ 2.5 $ (1.2 ) $ (146.3 ) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation expense (costs of sales and general and administrative) | $ 3,200,000 | $ 2,200,000 | $ 9,400,000 | $ 7,300,000 |
Income tax benefit related to stock-based compensation | (400,000) | (3,200,000) | ||
Impact on cash flow due to taxes paid related to net share settlement of equity awards | $ 800,000 | $ 100,000 | $ 8,900,000 | $ 5,400,000 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 12.7 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 3,200,000 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 16.3 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 90,444 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 20.45 | |
Stock Settled Stock Appreciation Rights (SSARs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 509,127 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ 6.99 | |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 451,795 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 16 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Senior unsecured notes, maturing 2020 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes Payable, Fair Value Disclosure | $ 90.9 | $ 366.2 |
Senior unsecured notes, maturing 2024 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes Payable, Fair Value Disclosure | $ 350.4 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Income (loss) from continuing operations | $ 65.6 | $ (24.6) | $ 107.6 | $ (78.6) |
Loss from discontinued operations | 0 | (1.9) | 0 | (1.9) |
Net Income (loss) | $ 65.6 | $ (26.5) | $ 107.6 | $ (80.5) |
Weighted average common shares outstanding | 143.7 | 142.6 | 143.3 | 142.3 |
Dilutive effect of stock warrants | 0.2 | 0.2 | ||
Dilutive effect of employee stock plans | 1.5 | 1.7 | ||
Dilutive potential common shares | 1.7 | 1.9 | ||
Adjusted weighted average shares | 145.4 | 142.6 | 145.2 | 142.3 |
Net income (loss) per share of common stock (basic): | ||||
Income (loss) from continuing operations | $ 0.46 | $ (0.17) | $ 0.75 | $ (0.55) |
Loss from discontinued operations | 0 | (0.02) | 0 | (0.02) |
Net income (loss) per share - basic | 0.46 | (0.19) | 0.75 | (0.57) |
Net income (loss) per share of common stock (diluted): | ||||
Income (loss) from continuing operations | 0.45 | (0.17) | 0.74 | (0.55) |
Loss from discontinued operations | 0 | (0.02) | 0 | (0.02) |
Net income (loss) per share - diluted | $ 0.45 | $ (0.19) | $ 0.74 | $ (0.57) |
Earnings per Share Narrative (D
Earnings per Share Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,200,000 | 4,700,000 | 2,700,000 | 5,000,000 |
Warrants outstanding | 227,129 | 227,129 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Trade receivables | $ 127.6 | $ 82.6 |
Income tax receivable | 3.6 | 2 |
Other receivables | 7.9 | 12.8 |
Allowance for doubtful accounts | (1.1) | (1) |
Total | $ 138 | $ 96.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Logs | $ 46.5 | $ 58.6 |
Other raw materials | 24.4 | 21.6 |
Semi-finished inventory | 19 | 18.5 |
Finished products | 137.2 | 123.3 |
Total | $ 227.1 | $ 222 |
Notes Receivable from Asset S42
Notes Receivable from Asset Sales (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Current portion | $ 410 | $ 0 |
Long-term portion | 22.2 | 432.2 |
Notes receivable (secured), maturing 2018, interest rates fixed | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 22.2 | 22.2 |
Notes receivable (secured), maturing 2018 (accelerated for collection 2016), interest rates variable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | 410 | 410 |
Total | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, Net | $ 432.2 | $ 432.2 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 35.00% | 35.00% | |
Deferred Tax Assets, Operating Loss Carryforwards | $ 73.4 | ||
Installment sales gain deferral, Pinewood [Member] | |||
Deferred Tax Liabilities, Net | $ 120.8 |
Long-term Debt Long-term Debt (
Long-term Debt Long-term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 838.7 | $ 757.8 |
Unamortized Discount (Premium) and Debt Issuance Costs | (6.3) | (3.9) |
Long-term Debt, Net | 832.4 | 753.9 |
Long-term Debt, Current Maturities | (458.1) | (2.1) |
Long-term Debt, Excluding Current Maturities | $ 374.3 | 751.8 |
Senior unsecured notes, maturing 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | |
Long-term Debt, Gross | $ 87.6 | 350 |
Unamortized Discount (Premium) and Debt Issuance Costs | (0.7) | (3.7) |
Long-term Debt, Net | 86.9 | 346.3 |
Long-term Debt, Current Maturities | $ (86.9) | |
Senior unsecured notes, maturing 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | |
Long-term Debt, Gross | $ 350 | |
Unamortized Discount (Premium) and Debt Issuance Costs | (5.2) | |
Long-term Debt, Net | 344.8 | |
Chilean term credit facility, maturing 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 7 | 12.8 |
Unamortized Discount (Premium) and Debt Issuance Costs | (0.3) | |
Long-term Debt, Net | $ 6.7 | 12.8 |
Brazilian export financing facility, maturing 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.70% | |
Long-term Debt, Gross | $ 2 | 4 |
Long-term Debt, Net | $ 2 | 4 |
Senior notes payable 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.30% | |
Long-term Debt, Gross | $ 22 | 22 |
Long-term Debt, Net | 22 | 22 |
Non-recourse notes payable 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 368.7 | 368.7 |
Unamortized Discount (Premium) and Debt Issuance Costs | (0.1) | (0.2) |
Long-term Debt, Net | 368.6 | 368.5 |
Long-term Debt, Current Maturities | (368.6) | |
Other Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1.4 | 0.3 |
Long-term Debt, Net | $ 1.4 | $ 0.3 |
Long-term Debt Narrative (Detai
Long-term Debt Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | |||||
Long-term Debt, Current Maturities | $ 458.1 | $ 458.1 | $ 2.1 | ||
Unamortized Discount (Premium) and Debt Issuance Costs | (6.3) | (6.3) | (3.9) | ||
Loss on early debt extinguishment | (13.2) | $ 0 | (13.2) | $ 0 | |
Non-recourse notes payable 2018 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | 368.7 | 368.7 | |||
Debt Instrument, Collateral Amount | 410 | 410 | |||
Long-term Debt, Current Maturities | 368.6 | 368.6 | |||
Unamortized Discount (Premium) and Debt Issuance Costs | (0.1) | (0.1) | (0.2) | ||
Senior unsecured notes, maturing 2020 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 350 | $ 350 | |||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | |||
Repayments of Debt | $ 262.4 | ||||
Long-term Debt, Current Maturities | 86.9 | $ 86.9 | |||
Unamortized Discount (Premium) and Debt Issuance Costs | (0.7) | (0.7) | $ (3.7) | ||
Loss on early debt extinguishment | 13.2 | ||||
Write off of Deferred Debt Issuance Cost | 2.2 | ||||
Senior unsecured notes, maturing 2024 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 350 | $ 350 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.875% | 4.875% | |||
Unamortized Discount (Premium) and Debt Issuance Costs | $ (5.2) | $ (5.2) |
Other Operating Credits and C46
Other Operating Credits and Charges, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Other Operating Credits And Charges, Net [Abstract] | ||||||
Other operating credits and charges, net | $ 0 | $ 11.4 | $ 1 | $ 11.6 | $ 11.4 | $ 12.6 |
Selected Segment Data (Details)
Selected Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Net sales: | $ 596.4 | $ 464.9 | $ 1,683.4 | $ 1,429.6 |
Operating profit (loss): | 76.9 | (17.4) | 148 | (64.7) |
Other operating credits and charges, net | 0 | (1) | (11.4) | (12.6) |
Loss on sale or impairment of long-lived assets, net | (0.3) | (0.9) | (1) | (1.5) |
General corporate and other expenses, net | (26.9) | (20.5) | (78.1) | (65.2) |
Other non-operating items | (0.5) | (3.7) | 1.4 | (5.5) |
Loss on early debt extinguishment | (13.2) | 0 | (13.2) | 0 |
Investment income | 2.5 | 0.5 | 6.4 | 2.9 |
Interest expense, net of capitalized interest | (9) | (8.4) | (26.3) | (23.1) |
Income (loss) from continuing operations before taxes | 58.1 | (27) | 120.7 | (86.3) |
Provision (benefit) for income taxes | (7.5) | (2.4) | 13.1 | (7.7) |
Income (loss) from continuing operations | 65.6 | (24.6) | 107.6 | (78.6) |
OSB [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales: | 282.1 | 200 | 751.9 | 601.2 |
Operating profit (loss): | 67.4 | (11.1) | 126.7 | (57.6) |
Siding [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales: | 194.8 | 157.8 | 583.3 | 495.2 |
Operating profit (loss): | 35.2 | 17.2 | 103.9 | 79.3 |
Engineered Wood Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales: | 80.7 | 74.4 | 230.5 | 211.2 |
Operating profit (loss): | 0 | (0.9) | (2) | (7.3) |
South America [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales: | 31.7 | 26.8 | 103.2 | 101.4 |
Operating profit (loss): | 3.3 | 2.4 | 15.3 | 6.8 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales: | 7.6 | 6.8 | 20.3 | 21.5 |
Operating profit (loss): | (0.4) | (0.6) | (1) | (2.5) |
Intersegment elimination [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales: | $ (0.5) | $ (0.9) | $ (5.8) | $ (0.9) |
Defined Benefit Pension Plans48
Defined Benefit Pension Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Service cost | $ 1.2 | $ 1 | $ 3.6 | $ 3.1 | |
Interest cost | 3.3 | 3.4 | 10.1 | 10.2 | |
Expected return on plan assets | (3.3) | (3.8) | (10) | (11.4) | |
Amortization of prior service cost 1 | 0.1 | 0.1 | 0.3 | [1] | 0.3 |
Amortization of net loss 1 | 1.4 | 1.7 | 4.1 | [1] | 5.2 |
Net periodic pension cost | 2.7 | 2.4 | 8.1 | 7.4 | |
Loss due to settlement | $ 0 | $ 0.4 | 0 | 0.4 | |
Pension Expense | 8.1 | $ 7.8 | |||
Pension Contributions | 6.7 | ||||
Minimum [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | 1 | ||||
Maximum [Member] | |||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||||
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year | $ 3 | ||||
[1] | The amounts reclassified from accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost; see Note 14 for additional details. The net periodic pension cost is included in Cost of sales and Selling and administrative expense in the Consolidated Statements of Income. |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||||
Beginning Balance | $ 25.6 | $ 25 | $ 21 | $ 31.4 | ||
Accrued to expense | 0.2 | 2.6 | 0.6 | 2.9 | ||
Accrued to other operating credits and charges | 0 | 0 | 10.9 | 0 | ||
Foreign currency translation | 0.1 | 0.8 | 0.6 | (0.2) | ||
Payments made | (4.8) | (2.9) | (12) | (8.6) | ||
Total warranty reserves | $ 25.6 | 25 | $ 21 | $ 31.4 | $ 21.1 | $ 25.5 |
Current portion of warranty reserves | (9) | (10) | ||||
Long-term portion of warranty reserves | $ 12.1 | $ 15.5 | ||||
Damages from Product Defects [Member] | ||||||
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||||
Accrued to expense | $ 2.5 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Beginning Balance | $ (135.1) | $ (136.5) | $ (146.1) | $ (131.3) |
Other comprehensive income (loss) before reclassifications | (0.6) | (11.1) | 8.6 | (18.4) |
Income taxes | 0.3 | 0.1 | 0.4 | 0.1 |
Net other comprehensive income (loss) before reclassifications | (0.3) | (11) | 9 | (18.3) |
Amounts reclassified from accumulated other comprehensive income (loss) | 1.5 | 1.9 | 4.4 | 5.5 |
Income taxes | (0.6) | (0.7) | (1.8) | (2.2) |
Net amounts reclassified from cumulative other comprehensive income (loss) | 0.9 | 1.2 | 2.6 | 3.3 |
Total other comprehensive income (loss) | 0.6 | (9.8) | 11.6 | (15) |
Ending Balance | (134.5) | (146.3) | (134.5) | (146.3) |
Foreign currency translation adjustments | ||||
Beginning Balance | (44.9) | (41.6) | (55.1) | (33.7) |
Other comprehensive income (loss) before reclassifications | 0.1 | (12) | 10.3 | (19.9) |
Income taxes | 0 | 0 | 0 | 0 |
Net other comprehensive income (loss) before reclassifications | 0.1 | (12) | 10.3 | (19.9) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Net amounts reclassified from cumulative other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 0.1 | (12) | 10.3 | (19.9) |
Ending Balance | (44.8) | (53.6) | (44.8) | (53.6) |
Actuarial loss, net of tax | ||||
Beginning Balance | (86.9) | (90.6) | (87.8) | (93.1) |
Other comprehensive income (loss) before reclassifications | 0.1 | 1.2 | (0.6) | 1.7 |
Income taxes | 0 | 0 | 0 | 0 |
Net other comprehensive income (loss) before reclassifications | 0.1 | 1.2 | (0.6) | 1.7 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1.4 | 1.8 | 4.1 | 5.2 |
Income taxes | (0.5) | (0.7) | (1.6) | (2.1) |
Net amounts reclassified from cumulative other comprehensive income (loss) | 0.9 | 1.1 | 2.5 | 3.1 |
Total other comprehensive income (loss) | 1 | 2.3 | 1.9 | 4.8 |
Ending Balance | (85.9) | (88.3) | (85.9) | (88.3) |
Prior service cost, net of tax | ||||
Beginning Balance | (5.4) | (5.8) | (5.5) | (5.9) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Net other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0.1 | 0.1 | 0.3 | 0.3 |
Income taxes | (0.1) | 0 | (0.2) | (0.1) |
Net amounts reclassified from cumulative other comprehensive income (loss) | 0 | 0.1 | 0.1 | 0.2 |
Total other comprehensive income (loss) | 0 | 0.1 | 0.1 | 0.2 |
Ending Balance | (5.4) | (5.7) | (5.4) | (5.7) |
Unrealized gain (loss) on investments | ||||
Beginning Balance | 3.1 | 2.6 | 3.3 | 2.6 |
Other comprehensive income (loss) before reclassifications | (0.8) | (0.2) | (1.1) | (0.2) |
Income taxes | 0.3 | 0.1 | 0.4 | 0.1 |
Net other comprehensive income (loss) before reclassifications | (0.5) | (0.1) | (0.7) | (0.1) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Net amounts reclassified from cumulative other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | (0.5) | (0.1) | (0.7) | (0.1) |
Ending Balance | 2.6 | 2.5 | 2.6 | 2.5 |
Other | ||||
Beginning Balance | (1) | (1.1) | (1) | (1.2) |
Other comprehensive income (loss) before reclassifications | 0 | (0.1) | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Net other comprehensive income (loss) before reclassifications | 0 | (0.1) | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Income taxes | 0 | 0 | 0 | 0 |
Net amounts reclassified from cumulative other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total other comprehensive income (loss) | 0 | (0.1) | 0 | 0 |
Ending Balance | $ (1) | $ (1.2) | $ (1) | $ (1.2) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Subsequent Event [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 103.80% | ||||
Restricted cash for bond redemption | $ 93.4 | $ 93.4 | |||
Loss on early debt extinguishment | $ (13.2) | $ 0 | $ (13.2) | $ 0 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Subsequent Event, Date | Oct. 14, 2016 | ||||
Loss on early debt extinguishment | $ 4 | ||||
Write off of Deferred Debt Issuance Cost | $ 0.7 |