Louisiana-Pacific (LPX) 10-Q 5 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2017shares
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	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding	144,747,004

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
ASSETS
Cash and cash equivalents	$ 649.5	$ 659.3
Receivables, net of allowance for doubtful accounts of $1.0 million at March 31, 2017 and December 31, 2016	149.1	108.3
Inventories	260	234.6
Prepaid expenses and other current assets	7.3	6.1
Assets held for sale	8.1	8.2
Total current assets	1,074	1,016.5
Timber and timberlands	52.4	53.5
Property, plant and equipment	2,426.4	2,410.8
Accumulated depreciation	(1,549.5)	(1,527.6)
Property, plant and equipment, net	876.9	883.2
Goodwill	9.7	9.7
Notes receivable from asset sales	22.2	22.2
Investments in and advances to affiliates	6.8	6.2
Restricted cash	13.1	13.2
Other assets	23.4	22.4
Long-term deferred tax asset	1.7	4.3
Total assets	2,080.2	2,031.2
LIABILITIES AND EQUITY
Current portion of long-term debt	1.6	2.6
Accounts payable and accrued liabilities	210.5	222.8
Current portion of contingency reserves	3.4	3.4
Total current liabilities	215.5	228.8
Long-term debt, excluding current portion	374.6	374.4
Deferred income taxes	28.5	27.7
Contingency reserves, excluding current portion	12.5	12.7
Other long-term liabilities	195	191.9
Stockholders' equity:
Common stock, $1 par value, 200,000,000 shares authorized, 153,358,542 shares issued	153.4	153.4
Additional paid-in capital	469	478.2
Retained earnings	945.3	890.3
Treasury stock, 8,694,673 shares and 9,041,733 shares, at cost	(180.4)	(189)
Accumulated comprehensive loss	(133.2)	(137.2)
Total stockholders' equity	1,254.1	1,195.7
Total liabilities and stockholders' equity	$ 2,080.2	$ 2,031.2

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Allowance for doubtful accounts	$ 1	$ 1

Consolidated Statement of Incom

Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net sales	$ 610.9	$ 504.6
Operating costs and expenses:
Cost of sales	455	415.5
Depreciation and amortization	30.6	27.9
Selling and administrative	48.6	42.3
Loss on sale or impairment of long-lived assets, net	0.6	0
Other operating credits and charges, net	3.4	0
Total operating costs and expenses	538.2	485.7
Income from operations	72.7	18.9
Non-operating income (expense):
Interest expense, net of capitalized interest	(5)	(8)
Investment income	2	1.8
Other non-operating items	(0.3)	0.5
Total non-operating income (expense)	(3.3)	(5.7)
Income before taxes and equity in income of unconsolidated affiliates	69.4	13.2
Provision for income taxes	15.5	4.4
Equity in income of unconsolidated affiliates	(1.1)	(1.5)
Net income	$ 55	$ 10.3
Net income per share of common stock:
Net income per share - basic	$ 0.38	$ 0.07
Net income per share - diluted	$ 0.38	$ 0.07
Weighted average shares of stock outstanding - basic	144.2	142.9
Weighted average shares of stock outstanding - diluted	145.9	145.2

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Net income	$ 55	$ 10.3
Other comprehensive income (loss)
Foreign currency translation adjustments	2.8	6.1
Unrealized loss on investments, net of tax	0.3	0
Defined benefit pension plans:
Change benefit obligations, translation adjustment	(0.2)	(0.8)
Amortization of amounts included in net periodic benefit cost, net of tax	1.1	0.9
Other comprehensive income	4	6.2
Comprehensive income	59	16.5
Actuarial loss, net of tax
Defined benefit pension plans:
Amortization of amounts included in net periodic benefit cost, net of tax	0.9	0.8
Other comprehensive income	0.7	0
Prior service cost, net of tax
Defined benefit pension plans:
Amortization of amounts included in net periodic benefit cost, net of tax	0.2	0.1
Other comprehensive income	$ 0.2	$ 0.1

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 55	$ 10.3
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	30.6	27.9
Equity in income of unconsolidated affiliates, including dividends	(0.6)	0.5
Loss on sale or impairment of long-lived assets, net	0.6	0
Other operating credits and charges, net	3.4	0
Stock-based compensation related to stock plans	4.1	3
Exchange loss on remeasurement	0.2	0.1
Cash settlements of warranties, net of accruals	(3.2)	(3.5)
Pension expense, net of contributions	1.4	0.4
Non-cash interest expense, net	0.1	0.4
Other adjustments, net	0.3	(0.3)
Increase in receivables	(39.7)	(47.8)
Increase in inventories	(24.8)	(26.9)
(Increase) decrease in prepaid expenses	(0.6)	1.1
Increase (decrease) in accounts payable and accrued liabilities	(19.9)	26
Increase in income taxes	13.9	3.9
Net cash provided by (used in) operating activities	20.8	(4.9)
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant, and equipment additions	(26.1)	(26.3)
Other investing activities	0.1	0.1
Net cash used in investing activities	(26)	(26.2)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayment of long-term debt	(1.2)	(1.1)
Sale of common stock under equity plans	0.4	0.1
Taxes paid related to net share settlement of equity awards	(4.7)	(0.9)
Net cash used in financing activities	(5.5)	(1.9)
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS	0.9	2.5
Net decrease in cash and cash equivalents	(9.8)	(30.5)
Cash and cash equivalents at beginning of period	659.3	434.7
Cash and cash equivalents at end of period	$ 649.5	$ 404.2

Basis For Presentation

Basis For Presentation	3 Months Ended
	Mar. 31, 2017
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, 2016 .

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2017
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 (shares or units), performance share awards payable in stock based upon the attainment of specified performance goals, stock settled stock appreciation rights (SSARs), other stock-based awards and cash-based awards at the discretion of the Compensation Committee. A detailed discussion of this is included in Note 14 to the consolidated financial statements included in LP's Annual Report on Form 10-K for the fiscal year ended December 31, 2016. As of March 31, 2017 , 2.7 million shares were available for grant under the 2013 Omnibus Plan. Quarter Ended March 31, Dollar amounts in millions 2017 2016 Total stock-based compensation expense (costs of sales and general and administrative) $ 4.1 $ 3.0 Income tax provision related to stock-based compensation $ — $ 1.9 Impact on cash flow due to taxes paid related to net share settlement of equity awards $ 4.7 $ 0.9 At March 31, 2017 , $ 15.9 million of compensation cost related to unvested performance shares, restricted stock and SSARs attributable to future service had not yet been recognized. Grants of awards During the first three months of 2017, the Company granted 121,724 performance units at an average grant date fair value of $24.87 per share, 277,931 SSARs at an average grant date fair value of $8.02 per share and 295,702 restricted stock awards (shares or units) at an average grant date fair value of $19.15 per share.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	FAIR VALUE MEASUREMENTS LP estimated its Senior Notes due in 2024 to have a fair value of $ 352.6 million at March 31, 2017 and $ 344.3 million at December 31, 2016 based upon market quotations. 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	3 Months Ended
	Mar. 31, 2017
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. LP's potentially dilutive securities consist of restricted stock, restricted stock units, performance share awards, and SSARs. Dollar and share amounts in millions, except per share amounts Quarter Ended March 31, 2017 2016 Numerator: Net income $ 55.0 $ 10.3 Denominator: Denominator for basic earnings per share: Weighted average common shares outstanding - basic 144.2 142.9 Effect of dilutive securities: Dilutive effect of stock warrants — 0.3 Dilutive effect of employee stock plans 1.7 2.0 Dilutive potential common shares 1.7 2.3 Denominator for diluted earnings per share: Weighted average shares outstanding - diluted 145.9 145.2 Basic earnings per share: Net income per share - basic $ 0.38 $ 0.07 Diluted earnings per share: Net income per share - diluted $ 0.38 $ 0.07 For the quarter ended March 31, 2017 and 2016 , restricted stock (shares or units), performance share awards, SSARs and warrants relating to approximately 0.6 million and 2.6 million shares of LP common stock were considered not in-the-money for purposes of LP's earnings per share calculation.

Receivables

Receivables	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Receivables	RECEIVABLES Receivables consist of the following: Dollar amounts in millions March 31, 2017 December 31, 2016 Trade receivables $ 137.4 $ 96.1 Income tax receivable 2.2 1.7 Other receivables 10.5 11.5 Allowance for doubtful accounts (1.0 ) (1.0 ) Total $ 149.1 $ 108.3 Other receivables at March 31, 2017 and December 31, 2016 primarily consist of sales tax receivables, vendor rebates, interest receivables, a receivable associated with an affiliate and other miscellaneous receivables.

Inventories

Inventories	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventories	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): Dollar amounts in millions March 31, 2017 December 31, 2016 Logs $ 76.0 $ 54.6 Other raw materials 22.2 23.0 Semi-finished inventory 15.5 16.8 Finished products 146.3 140.2 Total $ 260.0 $ 234.6

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
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. 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 three months of 2017 , the primary differences between the U.S. statutory rate of 35% and the effective rate applicable to LP’s income relate to foreign tax rates, changes in Canadian valuation allowances, and recognition of research and development tax credits from prior years. For the first three 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 valuation allowances and a charge for excess tax deficiencies in connection with LP's stock-based compensation plans. 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 carryforwards. 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.

Other Operating Credits and Cha

Other Operating Credits and Charges, Net	3 Months Ended
	Mar. 31, 2017
Other Operating Credits And Charges, Net [Abstract]
Other Operating Credits and Charges Net [Table Text Block]	OTHER OPERATING CREDITS AND CHARGES During the first quarter of 2017, LP recorded an expense of $ 3.4 million related to an increase in product related warranty reserves associated with CanExel products sold in specific geographic locations and for a specific time period.

Legal and Environmental Matters

Legal and Environmental Matters	3 Months Ended
	Mar. 31, 2017
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	3 Months Ended
	Mar. 31, 2017
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, 2016 . Quarter Ended March 31, Dollar amounts in millions 2017 2016 Net Sales OSB $ 268.4 $ 217.0 Siding 214.0 181.3 EWP 82.1 71.8 South America 37.8 30.5 Other 8.7 6.1 Intersegment Sales (0.1 ) (2.1 ) $ 610.9 $ 504.6 Operating profit (loss): OSB $ 60.4 $ 15.3 Siding 40.2 26.9 EWP 0.6 (2.5 ) South America 5.1 5.1 Other (0.2 ) (0.4 ) Other operating credits and charges, net (3.4 ) — Loss on sale or impairment of long-lived assets, net (0.6 ) — General corporate and other expenses, net (28.3 ) (24.0 ) Interest expense, net of capitalized interest (5.0 ) (8.0 ) Investment income 2.0 1.8 Other non-operating items (0.3 ) 0.5 Income from operations before taxes 70.5 14.7 Provision for income taxes 15.5 4.4 Net income $ 55.0 $ 10.3

Potential Impairments

Potential Impairments	3 Months Ended
	Mar. 31, 2017
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	3 Months Ended
	Mar. 31, 2017
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 ended March 31, 2017 and 2016 . The net periodic pension cost included the following components: Quarter Ended March 31, Dollar amounts in millions 2017 2016 Service cost $ 1.4 $ 1.2 Interest cost 3.2 3.3 Expected return on plan assets (3.3 ) (3.3 ) Amortization of prior service cost 1 0.2 0.1 Amortization of net loss 1 1.4 1.4 Net periodic pension cost $ 2.9 $ 2.7 1 The amortization of prior service costs and net loss are included in the amounts reclassified from accumulated other comprehensive income (loss); see Note 13 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 three months ended March 31, 2017 , LP made $1.5 million in pension contributions to its defined benefit pension plans. LP expects to contribute between $7.0 million and $9.0 million to its defined benefit pension plans in the remaining months of 2017.

Product Warranty

Product Warranty	3 Months Ended
	Mar. 31, 2017
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 ended March 31, 2017 and 2016 are summarized in the following table: Quarter Ended March 31, Dollar amounts in millions 2017 2016 Beginning balance $ 24.1 $ 21.0 Accrued to expense 0.2 0.1 Accrued to other operating credits and charges 3.4 — Foreign currency translation 0.2 0.6 Payments made (3.4 ) (3.6 ) Total warranty reserves 24.5 18.1 Current portion of warranty reserves (9.0 ) (6.0 ) Long-term portion of warranty reserves $ 15.5 $ 12.1 LP continues to monitor warranty and other claims associated with these products and believes as of March 31, 2017 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	3 Months Ended
	Mar. 31, 2017
Other Comprehensive Income (Loss), Net of Tax [Abstract]
Comprehensive Income (Loss) Note [Text Block]	NOTE 14 - OTHER COMPREHENSIVE INCOME Other comprehensive income activity, net of tax, is provided in the following table for the quarter ended March 31, 2017 : 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, 2016 $ (46.3 ) $ (87.7 ) $ (5.2 ) $ 2.7 $ (0.7 ) $ (137.2 ) Other comprehensive income (loss) before reclassifications 2.8 (0.2 ) — 0.5 — 3.1 Income taxes — — — (0.2 ) — (0.2 ) Net other comprehensive income (loss) before reclassifications 2.8 (0.2 ) — 0.3 — 2.9 Amounts reclassified from accumulated comprehensive income (loss) — 1.4 0.3 — — 1.7 Income taxes — (0.5 ) (0.1 ) — — (0.6 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 0.9 0.2 — — 1.1 Total other comprehensive income (loss) 2.8 0.7 0.2 0.3 — 4.0 Balance at March 31, 2017 $ (43.5 ) $ (87.0 ) $ (5.0 ) $ 3.0 $ (0.7 ) $ (133.2 ) Other comprehensive income activity, net of tax, is provided in the following table for the quarter ended March 31, 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 December 31, 2015 $ (55.1 ) $ (87.8 ) $ (5.5 ) $ 3.3 $ (1.0 ) $ (146.1 ) Net other comprehensive income (loss) before reclassifications 6.1 (0.8 ) — — — 5.3 Amounts reclassified from accumulated other comprehensive income (loss) — 1.4 0.1 — — 1.5 Income taxes — (0.6 ) — — — (0.6 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 0.8 0.1 — — 0.9 Total other comprehensive income (loss) 6.1 — 0.1 — — 6.2 Balance at March 31, 2016 $ (49.0 ) $ (87.8 ) $ (5.4 ) $ 3.3 $ (1.0 ) $ (139.9 ) The amounts reclassified from accumulated other comprehensive income (loss) are included in the computation of net periodic pension cost; see Note 11 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)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	RECENT AND PROSPECTIVE ACCOUNTING PRONOUNCEMENTS In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350). The standard simplifies the accounting for goodwill impairments by eliminating step 2 from the goodwill impairment test. Instead, if the carrying amount of a reporting unit exceeds its fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. The new standard is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. LP does not expect the adoption of this new standard to have a material impact on its consolidated results of operations and financial position. In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715). The standard amends the requirements in ASC 715 related to the income statement presentation of the components of net periodic benefit cost for an entity's sponsored defined benefit pension and other postretirement plans. The new standard is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. LP does not expect the adoption of this new standard to have a material impact on its consolidated results of operations and financial position as only the presentation of the income statement will be affected.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Quarter Ended March 31, Dollar amounts in millions 2017 2016 Total stock-based compensation expense (costs of sales and general and administrative) $ 4.1 $ 3.0 Income tax provision related to stock-based compensation $ — $ 1.9 Impact on cash flow due to taxes paid related to net share settlement of equity awards $ 4.7 $ 0.9

Earnings per Share (Tables) (Ta

Earnings per Share (Tables) (Tables)	3 Months Ended
	Mar. 31, 2017
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. LP's potentially dilutive securities consist of restricted stock, restricted stock units, performance share awards, and SSARs. Dollar and share amounts in millions, except per share amounts Quarter Ended March 31, 2017 2016 Numerator: Net income $ 55.0 $ 10.3 Denominator: Denominator for basic earnings per share: Weighted average common shares outstanding - basic 144.2 142.9 Effect of dilutive securities: Dilutive effect of stock warrants — 0.3 Dilutive effect of employee stock plans 1.7 2.0 Dilutive potential common shares 1.7 2.3 Denominator for diluted earnings per share: Weighted average shares outstanding - diluted 145.9 145.2 Basic earnings per share: Net income per share - basic $ 0.38 $ 0.07 Diluted earnings per share: Net income per share - diluted $ 0.38 $ 0.07

Receivables (Tables)

Receivables (Tables)	3 Months Ended
	Mar. 31, 2017
Receivables [Abstract]
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	Receivables consist of the following: Dollar amounts in millions March 31, 2017 December 31, 2016 Trade receivables $ 137.4 $ 96.1 Income tax receivable 2.2 1.7 Other receivables 10.5 11.5 Allowance for doubtful accounts (1.0 ) (1.0 ) Total $ 149.1 $ 108.3

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, 2017 December 31, 2016 Logs $ 76.0 $ 54.6 Other raw materials 22.2 23.0 Semi-finished inventory 15.5 16.8 Finished products 146.3 140.2 Total $ 260.0 $ 234.6

Selected Segment Data (Tables)

Selected Segment Data (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Quarter Ended March 31, Dollar amounts in millions 2017 2016 Net Sales OSB $ 268.4 $ 217.0 Siding 214.0 181.3 EWP 82.1 71.8 South America 37.8 30.5 Other 8.7 6.1 Intersegment Sales (0.1 ) (2.1 ) $ 610.9 $ 504.6 Operating profit (loss): OSB $ 60.4 $ 15.3 Siding 40.2 26.9 EWP 0.6 (2.5 ) South America 5.1 5.1 Other (0.2 ) (0.4 ) Other operating credits and charges, net (3.4 ) — Loss on sale or impairment of long-lived assets, net (0.6 ) — General corporate and other expenses, net (28.3 ) (24.0 ) Interest expense, net of capitalized interest (5.0 ) (8.0 ) Investment income 2.0 1.8 Other non-operating items (0.3 ) 0.5 Income from operations before taxes 70.5 14.7 Provision for income taxes 15.5 4.4 Net income $ 55.0 $ 10.3

Defined Benefit Pension Plans (

Defined Benefit Pension Plans (Tables)	3 Months Ended
	Mar. 31, 2017
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 March 31, Dollar amounts in millions 2017 2016 Service cost $ 1.4 $ 1.2 Interest cost 3.2 3.3 Expected return on plan assets (3.3 ) (3.3 ) Amortization of prior service cost 1 0.2 0.1 Amortization of net loss 1 1.4 1.4 Net periodic pension cost $ 2.9 $ 2.7

Product Warranty (Tables)

Product Warranty (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Schedule of Product Warranty Liability [Table Text Block]	The activity in warranty reserves for the quarter ended March 31, 2017 and 2016 are summarized in the following table: Quarter Ended March 31, Dollar amounts in millions 2017 2016 Beginning balance $ 24.1 $ 21.0 Accrued to expense 0.2 0.1 Accrued to other operating credits and charges 3.4 — Foreign currency translation 0.2 0.6 Payments made (3.4 ) (3.6 ) Total warranty reserves 24.5 18.1 Current portion of warranty reserves (9.0 ) (6.0 ) Long-term portion of warranty reserves $ 15.5 $ 12.1

Other Comprehensive Income Ot29

Other Comprehensive Income Other Comprehensive Income (Tables)	3 Months Ended
	Mar. 31, 2017
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 December 31, 2016 $ (46.3 ) $ (87.7 ) $ (5.2 ) $ 2.7 $ (0.7 ) $ (137.2 ) Other comprehensive income (loss) before reclassifications 2.8 (0.2 ) — 0.5 — 3.1 Income taxes — — — (0.2 ) — (0.2 ) Net other comprehensive income (loss) before reclassifications 2.8 (0.2 ) — 0.3 — 2.9 Amounts reclassified from accumulated comprehensive income (loss) — 1.4 0.3 — — 1.7 Income taxes — (0.5 ) (0.1 ) — — (0.6 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 0.9 0.2 — — 1.1 Total other comprehensive income (loss) 2.8 0.7 0.2 0.3 — 4.0 Balance at March 31, 2017 $ (43.5 ) $ (87.0 ) $ (5.0 ) $ 3.0 $ (0.7 ) $ (133.2 ) Other comprehensive income activity, net of tax, is provided in the following table for the quarter ended March 31, 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 December 31, 2015 $ (55.1 ) $ (87.8 ) $ (5.5 ) $ 3.3 $ (1.0 ) $ (146.1 ) Net other comprehensive income (loss) before reclassifications 6.1 (0.8 ) — — — 5.3 Amounts reclassified from accumulated other comprehensive income (loss) — 1.4 0.1 — — 1.5 Income taxes — (0.6 ) — — — (0.6 ) Net amounts reclassified from cumulative other comprehensive income (loss) — 0.8 0.1 — — 0.9 Total other comprehensive income (loss) 6.1 — 0.1 — — 6.2 Balance at March 31, 2016 $ (49.0 ) $ (87.8 ) $ (5.4 ) $ 3.3 $ (1.0 ) $ (139.9 )

Stock-Based Compensation (Detai

Stock-Based Compensation (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation expense (costs of sales and general and administrative)	$ 4,100,000	$ 3,000,000
Income tax benefit related to stock-based compensation	0	(1,900,000)
Impact on cash flow due to taxes paid related to net share settlement of equity awards	$ 4,700,000	$ 900,000

Stock-Based Compensation Narrat

Stock-Based Compensation Narrative (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 15.9
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	2,700,000
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	121,724
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares	$ 24.87
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	277,931
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares	$ 8.02
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	295,702
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares	$ 19.15

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Senior unsecured notes, maturing 2024 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Notes Payable, Fair Value Disclosure	$ 352.6	$ 344.3

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net income	$ 55	$ 10.3
Weighted average common shares outstanding - basic	144.2	142.9
Dilutive effect of stock warrants	0	0.3
Dilutive effect of employee stock plans	1.7	2
Dilutive potential common shares	1.7	2.3
Weighted average shares outstanding - diluted	145.9	145.2
Net income per share of common stock:
Net income per share - basic	$ 0.38	$ 0.07
Net income per share - diluted	$ 0.38	$ 0.07

Earnings per Share Narrative (D

Earnings per Share Narrative (Details) - shares shares in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0.6	2.6

Receivables (Details)

Receivables (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Receivables [Abstract]
Trade receivables	$ 137.4	$ 96.1
Income tax receivable	2.2	1.7
Other receivables	10.5	11.5
Allowance for doubtful accounts	(1)	(1)
Total	$ 149.1	$ 108.3

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Mar. 31, 2017	Dec. 31, 2016
Logs	$ 76	$ 54.6
Other raw materials	22.2	23
Semi-finished inventory	15.5	16.8
Finished products	146.3	140.2
Total	$ 260	$ 234.6

Income Taxes (Details)

Income Taxes (Details)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate	35.00%	35.00%

Other Operating Credits and C38

Other Operating Credits and Charges, Net (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Other Operating Credits And Charges, Net [Abstract]
Standard and Extended Product Warranty Accrual, Period Increase (Decrease)	$ 3.4	$ 0
Other operating credits and charges, net	$ 3.4	$ 0

Selected Segment Data (Details)

Selected Segment Data (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Net sales:	$ 610.9	$ 504.6
Operating profit (loss):	72.7	18.9
Other operating credits and charges, net	(3.4)	0
Loss on sale or impairment of long-lived assets, net	(0.6)	0
General corporate and other expenses, net	(28.3)	(24)
Interest expense, net of capitalized interest	(5)	(8)
Investment income	2	1.8
Other non-operating items	(0.3)	0.5
Income from operations before taxes	70.5	14.7
Provision for income taxes	15.5	4.4
Net income	55	10.3
OSB [Member]
Segment Reporting Information [Line Items]
Net sales:	268.4	217
Operating profit (loss):	60.4	15.3
Siding [Member]
Segment Reporting Information [Line Items]
Net sales:	214	181.3
Operating profit (loss):	40.2	26.9
Engineered Wood Products [Member]
Segment Reporting Information [Line Items]
Net sales:	82.1	71.8
Operating profit (loss):	0.6	(2.5)
South America [Member]
Segment Reporting Information [Line Items]
Net sales:	37.8	30.5
Operating profit (loss):	5.1	5.1
Other [Member]
Segment Reporting Information [Line Items]
Net sales:	8.7	6.1
Operating profit (loss):	(0.2)	(0.4)
Intersegment elimination [Member]
Segment Reporting Information [Line Items]
Net sales:	$ (0.1)	$ (2.1)

Defined Benefit Pension Plans40

Defined Benefit Pension Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Service cost	$ 1.4	$ 1.2
Interest cost	3.2	3.3
Expected return on plan assets	(3.3)	(3.3)
Amortization of prior service cost 1	0.2	0.1
Amortization of net loss 1	1.4	1.4
Net periodic pension cost	2.9	2.7
Pension Expense	2.9	$ 2.7
Pension Contributions	1.5
Minimum [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year	7
Maximum [Member]
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract]
Defined Benefit Plans, Estimated Future Employer Contributions in Current Fiscal Year	$ 9

Product Warranty (Details)

Product Warranty (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward]
Beginning Balance	$ 24.1	$ 21
Accrued to expense	0.2	0.1
Accrued to other operating credits and charges	3.4	0
Foreign currency translation	0.2	0.6
Payments made	(3.4)	(3.6)
Total warranty reserves	$ 24.1	$ 21	$ 24.5	$ 18.1
Current portion of warranty reserves			(9)	(6)
Long-term portion of warranty reserves			$ 15.5	$ 12.1

Other Comprehensive Income (Det

Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Beginning Balance	$ (137.2)	$ (146.1)
Other comprehensive income (loss) before reclassifications	3.1	5.3
Income taxes	(0.2)	0
Net other comprehensive income (loss) before reclassifications	2.9	5.3
Amounts reclassified from accumulated other comprehensive income (loss)	1.7	1.5
Income taxes	(0.6)	(0.6)
Net amounts reclassified from cumulative other comprehensive income (loss)	1.1	0.9
Total other comprehensive income (loss)	4	6.2
Ending Balance	(133.2)	(139.9)
Foreign currency translation adjustments
Beginning Balance	(46.3)	(55.1)
Other comprehensive income (loss) before reclassifications	2.8	6.1
Income taxes	0	0
Net other comprehensive income (loss) before reclassifications	2.8	6.1
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Income taxes	0	0
Net amounts reclassified from cumulative other comprehensive income (loss)	0	0
Total other comprehensive income (loss)	2.8	6.1
Ending Balance	(43.5)	(49)
Actuarial loss, net of tax
Beginning Balance	(87.7)	(87.8)
Other comprehensive income (loss) before reclassifications	(0.2)	(0.8)
Income taxes	0	0
Net other comprehensive income (loss) before reclassifications	(0.2)	(0.8)
Amounts reclassified from accumulated other comprehensive income (loss)	1.4	1.4
Income taxes	(0.5)	(0.6)
Net amounts reclassified from cumulative other comprehensive income (loss)	0.9	0.8
Total other comprehensive income (loss)	0.7	0
Ending Balance	(87)	(87.8)
Prior service cost, net of tax
Beginning Balance	(5.2)	(5.5)
Other comprehensive income (loss) before reclassifications	0	0
Income taxes	0	0
Net other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	0.3	0.1
Income taxes	(0.1)	0
Net amounts reclassified from cumulative other comprehensive income (loss)	0.2	0.1
Total other comprehensive income (loss)	0.2	0.1
Ending Balance	(5)	(5.4)
Unrealized gain (loss) on investments
Beginning Balance	2.7	3.3
Other comprehensive income (loss) before reclassifications	0.5	0
Income taxes	(0.2)	0
Net other comprehensive income (loss) before reclassifications	0.3	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Income taxes	0	0
Net amounts reclassified from cumulative other comprehensive income (loss)	0	0
Total other comprehensive income (loss)	0.3	0
Ending Balance	3	3.3
Other
Beginning Balance	(0.7)	(1)
Other comprehensive income (loss) before reclassifications	0	0
Income taxes	0	0
Net other comprehensive income (loss) before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	0
Income taxes	0	0
Net amounts reclassified from cumulative other comprehensive income (loss)	0	0
Total other comprehensive income (loss)	0	0
Ending Balance	$ (0.7)	$ (1)