Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 27, 2022 | |
Entity Information [Line Items] | ||
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Common Stock, $1 par value | |
Entity Tax Identification Number | 93-0609074 | |
Trading Symbol | LPX | |
Entity Registrant Name | LOUISIANA-PACIFIC CORPORATION | |
Entity Address, Address Line One | 414 Union Street | |
Entity Address, Address Line Two | Suite 2000 | |
City Area Code | Nashville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37219 | |
City Area Code | (615) | |
Local Phone Number | 986 - 5600 | |
Entity Central Index Key | 0000060519 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2022 | |
Entity File Number | 1-7107 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 82,118,548 | |
Security Exchange Name | NYSE | |
Entity Filer Category | Large Accelerated Filer | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Current Reporting Status | Yes |
Commiments and Contingencies
Commiments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Legal and Environmental Matters [Abstract] | |
Commiments and Contingencies | We maintain reserves for various contingent liabilities as follows (dollar amounts in millions): March 31, 2022 December 31, 2021 Environmental reserves $ 24 $ 25 Other reserves — — Total contingencies 24 25 Current portion (included in Accounts payable and accrued liabilities) (1) (1) Long-term portion $ 23 $ 24 Estimates of our loss contingencies are based on various assumptions and judgments. Due to the numerous uncertainties and variables associated with these assumptions and judgments, both the precision and reliability of the resulting estimates of the related contingencies are subject to substantial uncertainties. We regularly monitor our estimated exposure to contingencies and, as additional information becomes known, may change our estimates significantly. While no estimate of the range of any such change can be made at this time, the amount that we may ultimately pay in connection with these matters could materially exceed, in either the near term or the longer term, the amounts accrued to date. Our estimates of our loss contingencies do not reflect potential future recoveries from insurance carriers except to the extent that recovery may, from time to time, be deemed probable as a result of an insurer’s agreement to payment terms. Environmental Matters We maintain a reserve for undiscounted estimated environmental loss contingencies. This reserve is primarily for estimated future costs of remediation of hazardous or toxic substances at numerous sites currently or previously owned by the Company. Our estimates of our environmental loss contingencies are based on various assumptions and judgments, the specific nature of which varies considering the particular facts and circumstances surrounding each environmental loss contingency. These estimates typically reflect assumptions and judgments as to the probable nature, magnitude, and timing of the required investigation, remediation and/or monitoring activities and the probable cost of these activities, and in some cases reflect assumptions and judgments as to the obligation or willingness and ability of third parties to bear a proportionate or allocated share of the cost of these activities. Due to the numerous uncertainties and variables associated with these assumptions and judgments, and the effects of changes in governmental regulation and environmental technologies, both the precision and reliability of the resulting estimates of the related contingencies are subject to substantial uncertainties. We regularly monitor our estimated exposure to environmental loss contingencies and, as additional information becomes known, may change our estimates significantly. Other Proceedings From time to time, we and our subsidiaries are parties to certain legal proceedings. Based on the information currently available, management believes the resolution of such proceedings will not have a material effect on our financial position, results of operations, cash flows, or liquidity. |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 1,337 | $ 1,017 |
Cost of sales | (676) | (538) |
Gross Profit | 661 | 479 |
Selling, general, and administrative expenses | (65) | (48) |
Other Operating Charges And Credits, Net | 38 | 0 |
Income from operations | 633 | 431 |
Non-operating income (expense): | ||
Interest Expense | (3) | (5) |
Investment income | 1 | 0 |
Other non-operating items | (10) | (10) |
Income before income taxes | 621 | 416 |
Provision for income taxes | (139) | (96) |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | 1 | 0 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest, Total | 483 | 320 |
Net Income (Loss) Attributable to Redeemable Noncontrolling Interest | 1 | 1 |
Net income attributed to LP | $ 484 | $ 320 |
Net income per share of common stock: | ||
Net income per share - basic | $ 5.64 | $ 3.02 |
Net income per share - diluted | $ 5.60 | $ 3 |
Diluted net income per share of common stock | ||
Basic | 86,000,000 | 106,000,000 |
Weighted average shares of stock outstanding - diluted | 86,000,000 | 107,000,000 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 483 | $ 320 |
Other comprehensive income (loss) | ||
Other comprehensive income (loss), net of tax | 24 | (6) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 508 | 313 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | (1) | |
Comprehensive income (loss) attributed to LP | 508 | 314 |
Foreign currency translation adjustments | ||
Other comprehensive income (loss) | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 23 | (7) |
Amortization of pension and post-retirement prior service costs and net loss | ||
Other comprehensive income (loss) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 1 | $ 0 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 624 | $ 358 |
Receivables, net of allowance for doubtful accounts of $2 million as of March 31, 2022, and December 31, 2021 | 320 | 191 |
Inventories | 382 | 323 |
Prepaid expenses and other current assets | 15 | 18 |
Total current assets | 1,341 | 890 |
Timber and timberlands | 54 | 84 |
Property, plant, and equipment, net | 1,132 | 1,069 |
Operating lease assets | 51 | 52 |
Goodwill and other intangible assets | 38 | 39 |
Investments in and advances to affiliates | 7 | 21 |
Restricted Cash, Noncurrent | 14 | 13 |
Other assets | 25 | 25 |
Deferred Tax Assets, Deferred Income | 8 | 2 |
Total assets | 2,670 | 2,194 |
LIABILITIES AND EQUITY | ||
Accounts payable and accrued liabilities | 330 | 338 |
Accrued Income Taxes, Current | 129 | 13 |
Total current liabilities | 459 | 351 |
Long-term Debt and Lease Obligation | 346 | 346 |
Deferred Income Tax Liabilities, Net | 103 | 86 |
Operating Lease liability, noncurrent | 44 | 44 |
Loss Contingency Accrual | 23 | 24 |
Other long-term liabilities | 80 | 105 |
Liabilities | 1,054 | 955 |
Redeemable noncontrolling interest | 3 | 4 |
Stockholders' equity: | ||
Common stock, $1 par value, 200,000,000 shares authorized; 100,884,145 and 84,496,113 shares issued and outstanding, respectively, at March 31, 2022; and 102,415,883 and 85,636,154 shares issued and outstanding, respectively, at December 31, 2021 | 101 | 102 |
Additional paid-in capital | 451 | 458 |
Retained earnings | 1,601 | 1,239 |
Treasury stock, 16,388,032 shares and 16,779,729 shares, at cost as of March 31, 2022, and December 31, 2021, respectively | (391) | (390) |
Accumulated comprehensive loss | (149) | (174) |
Total stockholders' equity | 1,613 | 1,235 |
Total liabilities and stockholders' equity | $ 2,670 | $ 2,194 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 483 | $ 320 |
Adjustments to net income: | ||
Depreciation and amortization | 32 | 29 |
Equity Method Investment, Realized Gain (Loss) on Disposal | (39) | 0 |
Deferred Income Tax Expense (Benefit) | 11 | 4 |
Gain (Loss) on Extinguishment of Debt | 0 | 11 |
Other adjustments, net | 5 | 3 |
Receivables | (127) | (74) |
Prepaid expenses and other current assets | 3 | 3 |
Inventories | (55) | (50) |
Accounts payable and accrued liabilities | (2) | (3) |
Income taxes payable, net of receivables | (116) | (71) |
Net cash provided by operating activities | 425 | 314 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Property, plant, and equipment additions | (92) | (34) |
Proceeds from Divestiture of Businesses | 59 | 0 |
Other investing activities | 1 | 2 |
Net cash used in investing activities | (33) | (32) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from Issuance of Long-term Debt | 0 | 350 |
Repayments of Long-term Debt | 0 | (359) |
Payment of cash dividend | (19) | (17) |
Purchase of stock | (104) | (122) |
Other financing activities | (15) | (10) |
Net cash used in financing activities | (137) | (158) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 11 | (2) |
Net increase in cash, cash equivalents and restricted cash | 266 | 122 |
Cash, cash equivalents and restricted cash at beginning of period | 371 | 535 |
Cash, cash equivalents and restricted cash at end of period | 637 | 658 |
Income Taxes Paid, Net | 12 | 21 |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 4 | 9 |
Capital Expenditures Incurred but Not yet Paid | $ 41 | $ 14 |
Statement of Shareholders Equit
Statement of Shareholders Equity Statement - USD ($) $ in Millions | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Common Stock, Shares, Outstanding | 124,000,000 | |||||
Common Stock, Amount, Outstanding | $ 124 | |||||
Treasury Stock, Shares | 17,000,000 | |||||
Treasury Stock, amount | $ (397) | |||||
Additional paid-in capital | $ 452 | |||||
Retained earnings | $ 1,206 | |||||
Accumulated comprehensive loss | $ (151) | |||||
Total stockholders' equity | $ 1,234 | |||||
Net income | 320 | 320 | ||||
Dividends paid | (17) | (17) | ||||
Issuance of shares under stock plans | 0 | |||||
Issuance of shares under stock plans, amount | $ 0 | $ 11 | 11 | |||
Taxes paid related to net settlement of stock-based awards | (6,000,000) | (6,000,000) | ||||
Purchase of stock | $ (122) | |||||
Compensation expense associated with stock-based compensation | 1 | 1 | ||||
Other comprehensive income | (6) | (6) | ||||
Common stock, Shares acquired | (2,000,000) | |||||
Common stock, Value, Shares acquired | (122) | $ (2) | 0 | (120) | ||
Common Stock, Shares, Outstanding | 121,000,000 | |||||
Common Stock, Amount, Outstanding | $ 121 | |||||
Treasury Stock, Shares | 17,000,000 | |||||
Treasury Stock, amount | $ (393) | |||||
Additional paid-in capital | 443 | |||||
Retained earnings | 1,390 | |||||
Accumulated comprehensive loss | (157) | |||||
Total stockholders' equity | $ 1,404 | |||||
Common Stock, Shares, Outstanding | 85,636,154 | 102,000,000 | ||||
Common Stock, Amount, Outstanding | $ 102 | |||||
Treasury Stock, Shares | 17,000,000 | |||||
Treasury Stock, amount | $ 390 | $ (390) | ||||
Additional paid-in capital | 458 | 458 | ||||
Retained earnings | 1,239 | 1,239 | ||||
Accumulated comprehensive loss | (174) | (174) | ||||
Total stockholders' equity | 1,235 | |||||
Net income | 484 | 484 | ||||
Dividends paid | (19) | (19) | ||||
Issuance of shares under stock plans | (1,000,000) | |||||
Issuance of shares under stock plans, amount | $ 0 | $ 14 | 14 | |||
Taxes paid related to net settlement of stock-based awards | (15,000,000) | (15,000,000) | ||||
Purchase of stock | $ (104) | 102 | ||||
Compensation expense associated with stock-based compensation | 7 | 7 | ||||
Other comprehensive income | $ 24 | 24 | ||||
Common stock, Shares acquired | (2,000,000) | |||||
Common stock, Value, Shares acquired | $ (2) | |||||
Common Stock, Shares, Outstanding | 84,496,113 | 101,000,000 | ||||
Common Stock, Amount, Outstanding | $ 101 | |||||
Treasury Stock, Shares | 16,000,000 | |||||
Treasury Stock, amount | $ 391 | $ (391) | ||||
Additional paid-in capital | 451 | $ 451 | ||||
Retained earnings | 1,601 | $ 1,601 | ||||
Accumulated comprehensive loss | (149) | $ (149) | ||||
Total stockholders' equity | $ 1,613 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2 | $ 2 |
Common Stock, Shares Authorized | 200,000,000 | |
Common Stock, Shares, Issued | 100,884,145 | 102,415,883 |
Common Stock, Shares, Outstanding | 84,496,113 | 85,636,154 |
Treasury Stock, Shares | 16,388,032 | 16,779,729 |
Basis For Presentation
Basis For Presentation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis for Presentation | Nature of Operations Louisiana-Pacific Corporation and our subsidiaries are a leading provider of high-performance building solutions that meet the demands of builders, remodelers, and homeowners worldwide. Serving the new home construction, repair and remodeling, and outdoor structures markets, we have leveraged our expertise to become an industry leader known for innovation, quality, and reliability. The Company operates 25 plants across the U.S., Canada, Chile, and Brazil, through foreign subsidiaries, and operates facilities through joint ventures. The principal customers for our building solutions are retailers, wholesalers, and homebuilding and industrial businesses, in North America and South America, with limited sales to Asia, Australia, and Europe. References to "LP," the "Company," "we," "our," and "us" refer to Louisiana-Pacific Corporation and its consolidated subsidiaries as a whole. Basis for Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) for interim financial information. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal and recurring nature. These Condensed Consolidated Financial Statements and related Notes should be read in conjunction with our annual report on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC on February 22, 2022 (2021 Annual Report on Form 10-K). Results of operations for interim periods are not necessarily indicative of results to be expected for an entire year. |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Disaggregation of Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE 2. REVENUE The following table presents our reportable segment revenues, disaggregated by revenue source. We disaggregate revenue from contracts with customers into major product lines. We have determined that disaggregating revenue into these categories achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. As noted in the segment reporting information in Note 18 below, our reportable segments are Siding, Oriented Strand Board (OSB), Engineered Wood Products (EWP), and South America (dollar amounts in millions). Three Months Ended March 31, 2022 By product type and family: Siding OSB EWP South America Other Inter-segment Total Value-add Siding Solutions $ 330 $ — $ — $ 6 $ — $ — $ 336 OSB - Structural Solutions — 406 — 58 — (1) 464 I-Joist — — 79 — — — 79 LVL — — 65 — — — 65 330 406 144 64 — (1) 945 Commodity OSB - commodity — 334 — — — — 334 Plywood — — 11 — — — 11 — 334 11 — — — 345 Other Other products 2 4 14 2 26 — 48 $ 332 $ 744 $ 170 $ 67 $ 26 $ (1) $ 1,337 Three Months Ended March 31, 2021 By product type and family: Siding OSB EWP South America Other Inter-segment Total Value-add Siding Solutions $ 282 $ — $ — $ 9 $ — $ — $ 291 OSB - Structural Solutions — 254 — 41 — — 295 I-Joist — — 48 — — — 48 LVL — — 43 — — — 43 LSL — — 8 — — — 8 282 254 100 50 — — 686 Commodity OSB - commodity — 282 — — — — 281 Plywood — — 13 — — — 13 — 282 13 — — — 294 Other Other products 3 3 11 3 18 — 37 $ 285 $ 539 $ 123 $ 53 $ 18 $ — $ 1,017 Revenue is recognized when obligations under the terms of a contract (i.e. , purchase orders) with our customers are satisfied; generally, this occurs with the transfer of control of our products at a point in time. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. The shipping cost incurred by us to deliver products to our customers is recorded in cost of sales. The expected costs associated with our warranties continue to be recognized as an expense when the products are sold. Our businesses routinely incur customer program costs to obtain favorable product placement, to promote sales of products, and to maintain competitive pricing. Customer program costs and incentives, including rebates and promotion and volume allowances, are accounted for as deductions from net sales at the time the program is initiated. These reductions from revenue are recorded at the time of sale or the implementation of the program based on management’s best estimates. Estimates are based on historical and projected experience for each type of program or customer. Volume allowances are accrued based on management’s estimates of customer volume achievement and other factors incorporated into customer agreements, such as new product purchases, store sell-through, and merchandising support. Management adjusts accruals when circumstances indicate (typically as a result of a change in volume expectations). We ship some of our products to customers’ distribution centers on a consignment basis. We retain title to our products stored at the distribution centers. As our products are removed from the distribution centers by retailers and shipped to retailers’ stores, title passes from us to the retailers. At that time, we invoice the retailers and recognize revenue for these consignment transactions. We do not offer a right of return for products shipped to the retailers’ stores from the distribution centers. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | EARNINGS PER SHARE Basic earnings per share is based upon the weighted-average number of shares of common stock outstanding. Diluted earnings per share is based upon the weighted-average number of shares of common stock outstanding, plus all potentially dilutive securities that were assumed to be converted into common shares at the beginning of the period under the treasury stock method. This method requires that the effect of potentially dilutive common stock equivalents (stock options, stock-settled appreciation rights (SSARs), restricted stock units, and performance stock units) be excluded from the calculation of diluted earnings per share for the periods in which losses are reported because the effect is anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share (dollar amounts in millions, except per share amounts): Three Months Ended March 31, 2022 2021 Net income attributed to LP $ 484 $ 320 Weighted average common shares outstanding - basic 86 106 Dilutive effect of employee stock plans 1 1 Shares used for diluted earnings per share 86 107 Earnings per share: Basic earnings $ 5.64 $ 3.02 Diluted earnings $ 5.60 $ 3.00 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE 4. FAIR VALUE MEASUREMENTS Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. We are required to classify these financial assets and liabilities into two groups: (i) recurring—measured on a periodic basis, and (ii) non-recurring—measured on an as-needed basis. Trading securities consist of rabbi trust financial assets, which are recorded in Other assets in our Condensed Consolidated Balance Sheets. The assets of the rabbi trust are invested in mutual funds and are reported at fair value based on active market quotations, which represent Level 1 inputs. The fair value of the 3.625% Senior Notes due in 2029 (2029 Senior Notes) was estimated to be $324 million and $358 million as of March 31, 2022, and December 31, 2021, respectively, based upon market quotations. The 2029 Senior Notes and other long-term debt are categorized as Level 1 in the U.S. GAAP fair value hierarchy. Fair values are based on trading activity among the Company’s lenders and the average bid and ask price as determined using published rates. There were no outstanding amounts borrowed under our Amended Credit Facility (defined below) as of March 31, 2022. |
Receivables
Receivables | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Receivables | RECEIVABLES Receivables consisted of the following (dollar amounts in millions): March 31, 2022 December 31, 2021 Trade receivables $ 305 $ 172 Income tax receivable — 1 Other receivables 17 20 Allowance for doubtful accounts (2) (2) Total $ 320 $ 191 Trade receivables are primarily generated by sales of our products to our wholesale and retail customers. Other receivables as of March 31, 2022 and December 31, 2021, primarily consist of sales tax receivables, vendor rebates, and other miscellaneous receivables. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2022 | |
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 (work in process is not material and is included in Semi-finished inventory) are as follows (dollar amounts in millions): March 31, 2022 December 31, 2021 Logs $ 86 $ 59 Other raw materials 69 59 Semi-finished inventory 38 38 Finished products 189 168 Total $ 382 $ 323 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 8. GOODWILL AND OTHER INTANGIBLES Goodwill and indefinite-lived intangible assets are not amortized and are subject to assessment for impairment by applying a fair value-based test on an annual basis or more frequently, if circumstances indicate a potential impairment. The Company’s annual assessment date is October 1. Changes in goodwill and other intangible assets for the three months ended March 31, 2022, are provided in the following table (dollar amounts in millions): Timber licenses 1 Goodwill Developed Technology Trademarks Beginning balance December 31, 2021 $ 31 $ 19 $ 17 $ 2 Amortization (1) — (1) — Ending balance March 31, 2022 $ 31 $ 19 $ 16 $ 2 1 Timber licenses are included in Timber and timberlands on the Condensed Consolidated Balance Sheets. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest (Notes) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination, Step Acquisition [Abstract] | |
Redeemable Noncontrolling Interest | NOTE 9. REDEEMABLE NONCONTROLLING INTEREST Redeemable noncontrolling interest is interest in subsidiaries that is redeemable outside of our control either for cash or other assets. These interests are classified as mezzanine equity and measured at the greater of estimated redemption value or carrying value at the end of each reporting period. Net loss attributed to noncontrolling interest is recorded in the Condensed Consolidated Statements of Income. Any adjustments to the redemption value of redeemable noncontrolling interest are recognized in either net income or through accumulated paid-in capital, depending on the nature of the underlying security (preferred or common units). The components of redeemable noncontrolling interest as of March 31, 2022, are as follows (dollar amounts in millions): Beginning balance December 31, 2021 $ 4 Net loss attributed to noncontrolling interest (1) Ending balance March 31, 2022 $ 3 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXESFor interim periods, we recognize income tax expense by applying the estimated annual effective income tax rate to year-to-date results unless this method does not result in a reliable estimate of year-to-date income tax expense. Each period, the income tax accrual is adjusted to the latest estimate, and the difference from the previously accrued year-to-date balance is adjusted in the current quarter. Changes in profitability estimates in various jurisdictions will impact our quarterly effective income tax rates.The tax provision for income taxes for the three months ended March 31, 2022 and 2021, reflected an estimated annual tax rate of 24% and 25%, respectively, excluding discrete items discussed below. The total effective tax rate for the three months ended March 31, 2022 was 22%, compared to 23% for the comparable period in 2021. We recognized a net discrete tax benefit of $9 million and $5 million during the three months ended March 31, 2022 and 2021, respectively, with the most significant benefit related to excess tax benefits from stock-based compensation for both periods. |
Compensation Related Costs, Sha
Compensation Related Costs, Share Based Payments | 3 Months Ended |
Mar. 31, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement | We have stock award plans for key employees and directors, pursuant to which awards of stock options, SSARs, restricted stock, restricted stock units, and performance stock units are granted. In addition, we offer an employee stock purchase plan to employees. During the three months ended March 31, 2022, we granted awards of 135,381 restricted stock units and 88,239 performance stock units, at an average grant date fair value of $70.55 per share. |
Impairments of Long-Lived Asset
Impairments of Long-Lived Assets | 3 Months Ended |
Mar. 31, 2022 | |
Asset Impairment Charges [Abstract] | |
Impairments of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS We review the carrying values of our long-lived assets for potential impairments and believe we have adequate support for the carrying value of our long-lived assets. If demand and pricing for our products fall to levels significantly below cycle average demand and pricing, should we decide to invest capital in alternative projects, or should changes occur related to our wood supply for our mills, it is possible that future impairment charges will be required. As of March 31, 2022, there were no indications of impairment. |
Product Warranty
Product Warranty | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Indemnifications | PRODUCT WARRANTIES We offer warranties on the sale of most of our products and record an accrual for estimated future claims. Such accruals are based upon historical experience and management’s estimate of the level of future claims. The activity in warranty reserves for the three months ended March 31, 2022 and 2021, is summarized in the following table (dollar amounts in millions): Three Months Ended March 31, 2022 2021 Beginning balance $ 7 $ 8 Accrued to expense 1 — Payments made — — Total warranty reserves 8 8 Current portion of warranty reserves (included in Accounts payable and accrued liabilities) (2) (2) Long-term portion of warranty reserves (included in Other long-term liabilities) $ 6 $ 6 |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Compensation and Employee Benefit Plans | DEFINED BENEFIT PENSION PLANS The following table summarizes our net periodic pension cost for our defined benefit pension and postretirement plans during the three months ended March 31, 2022 and 2021 (dollar amounts in millions): Three Months Ended March 31, 2022 2021 Service cost $ 1 $ — Other components of net periodic pension cost 1 : Interest cost 2 2 Expected return on plan assets (2) (3) Amortization of prior service cost — — Amortization of net loss 1 1 Net periodic pension cost $ 2 $ 1 1 |
Other Comprehensive Income Othe
Other Comprehensive Income Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | ACCUMULATED COMPREHENSIVE LOSS Accumulated comprehensive loss is provided in the following table for the three months ended March 31, 2022 and 2021 (dollar amounts in millions): Pension Translation Adjustments Other Total Balance at December 31, 2021 $ (76) $ (96) $ (1) $ (174) Reclassified to income statement, net of taxes 1 1 — — 1 Translation adjustments — 23 — 23 Balance at March 31, 2022 $ (75) $ (73) $ (1) $ (149) Pension Translation Adjustments Other Total Balance at December 31, 2020 $ (81) $ (68) $ (2) $ (151) Reclassified to income statement, net of taxes 1 — — — — Translation adjustments — (7) — (7) Balance at March 31, 2021 $ (81) $ (75) $ (2) $ (157) |
Selected Segment Data
Selected Segment Data | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Selected Segment Data | SELECTED SEGMENT DATA We operate in four segments: Siding, OSB, EWP, and South America. Our business units have been aggregated into these four segments based upon the similarity of economic characteristics, customers, and distribution methods. Our results of operations are summarized below for each of these segments separately as well as for the “Other” category, which comprises other products that are not individually significant. We evaluate the performance of our business segments based on net sales and Adjusted EBITDA. Accordingly, our chief operating decision maker evaluates performance and allocates resources based primarily on net sales and Adjusted EBITDA for our business segments. Adjusted EBITDA is a non-GAAP financial measure and is defined as income attributed to LP before interest expense, provision for income taxes, depreciation and amortization, and excludes stock-based compensation expense, loss on impairment attributed to LP, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items. Information about our product segments is as follows (dollar amounts in millions): Three Months Ended March 31, 2022 2021 Net sales Siding $ 332 $ 285 OSB 744 539 EWP 170 123 South America 67 53 Other 26 18 Intersegment sales (1) — Total sales $ 1,337 $ 1,017 PROFIT BY SEGMENT Net income $ 483 $ 320 Add (deduct): Net loss attributed to noncontrolling interest 1 1 Income attributed to LP 484 320 Provision for income taxes 139 96 Depreciation and amortization 32 29 Stock-based compensation expense 7 1 Other operating credits and charges, net (38) — Loss on early debt extinguishment — 11 Interest expense 3 5 Investment income (1) — Other non-operating items 10 (1) Adjusted EBITDA $ 636 $ 461 Siding $ 83 $ 90 OSB 505 354 EWP 38 7 South America 25 21 Other (6) (5) Corporate (9) (6) Adjusted EBITDA $ 636 $ 461 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended March 31, 2022 By product type and family: Siding OSB EWP South America Other Inter-segment Total Value-add Siding Solutions $ 330 $ — $ — $ 6 $ — $ — $ 336 OSB - Structural Solutions — 406 — 58 — (1) 464 I-Joist — — 79 — — — 79 LVL — — 65 — — — 65 330 406 144 64 — (1) 945 Commodity OSB - commodity — 334 — — — — 334 Plywood — — 11 — — — 11 — 334 11 — — — 345 Other Other products 2 4 14 2 26 — 48 $ 332 $ 744 $ 170 $ 67 $ 26 $ (1) $ 1,337 Three Months Ended March 31, 2021 By product type and family: Siding OSB EWP South America Other Inter-segment Total Value-add Siding Solutions $ 282 $ — $ — $ 9 $ — $ — $ 291 OSB - Structural Solutions — 254 — 41 — — 295 I-Joist — — 48 — — — 48 LVL — — 43 — — — 43 LSL — — 8 — — — 8 282 254 100 50 — — 686 Commodity OSB - commodity — 282 — — — — 281 Plywood — — 13 — — — 13 — 282 13 — — — 294 Other Other products 3 3 11 3 18 — 37 $ 285 $ 539 $ 123 $ 53 $ 18 $ — $ 1,017 Revenue is recognized when obligations under the terms of a contract (i.e. , purchase orders) with our customers are satisfied; generally, this occurs with the transfer of control of our products at a point in time. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. The shipping cost incurred by us to deliver products to our customers is recorded in cost of sales. The expected costs associated with our warranties continue to be recognized as an expense when the products are sold. Our businesses routinely incur customer program costs to obtain favorable product placement, to promote sales of products, and to maintain competitive pricing. Customer program costs and incentives, including rebates and promotion and volume allowances, are accounted for as deductions from net sales at the time the program is initiated. These reductions from revenue are recorded at the time of sale or the implementation of the program based on management’s best estimates. Estimates are based on historical and projected experience for each type of program or customer. Volume allowances are accrued based on management’s estimates of customer volume achievement and other factors incorporated into customer agreements, such as new product purchases, store sell-through, and merchandising support. Management adjusts accruals when circumstances indicate (typically as a result of a change in volume expectations). We ship some of our products to customers’ distribution centers on a consignment basis. We retain title to our products stored at the distribution centers. As our products are removed from the distribution centers by retailers and shipped to retailers’ stores, title passes from us to the retailers. At that time, we invoice the retailers and recognize revenue for these consignment transactions. We do not offer a right of return for products shipped to the retailers’ stores from the distribution centers. |
Earnings per Share (Tables) (Ta
Earnings per Share (Tables) (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic earnings per share is based upon the weighted-average number of shares of common stock outstanding. Diluted earnings per share is based upon the weighted-average number of shares of common stock outstanding, plus all potentially dilutive securities that were assumed to be converted into common shares at the beginning of the period under the treasury stock method. This method requires that the effect of potentially dilutive common stock equivalents (stock options, stock-settled appreciation rights (SSARs), restricted stock units, and performance stock units) be excluded from the calculation of diluted earnings per share for the periods in which losses are reported because the effect is anti-dilutive. The following table sets forth the computation of basic and diluted earnings per share (dollar amounts in millions, except per share amounts): Three Months Ended March 31, 2022 2021 Net income attributed to LP $ 484 $ 320 Weighted average common shares outstanding - basic 86 106 Dilutive effect of employee stock plans 1 1 Shares used for diluted earnings per share 86 107 Earnings per share: Basic earnings $ 5.64 $ 3.02 Diluted earnings $ 5.60 $ 3.00 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Receivables consisted of the following (dollar amounts in millions): March 31, 2022 December 31, 2021 Trade receivables $ 305 $ 172 Income tax receivable — 1 Other receivables 17 20 Allowance for doubtful accounts (2) (2) Total $ 320 $ 191 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | The major types of inventories (work in process is not material and is included in Semi-finished inventory) are as follows (dollar amounts in millions): March 31, 2022 December 31, 2021 Logs $ 86 $ 59 Other raw materials 69 59 Semi-finished inventory 38 38 Finished products 189 168 Total $ 382 $ 323 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill [Line Items] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Changes in goodwill and other intangible assets for the three months ended March 31, 2022, are provided in the following table (dollar amounts in millions): Timber licenses 1 Goodwill Developed Technology Trademarks Beginning balance December 31, 2021 $ 31 $ 19 $ 17 $ 2 Amortization (1) — (1) — Ending balance March 31, 2022 $ 31 $ 19 $ 16 $ 2 |
Commiments and Contingencies Co
Commiments and Contingencies Commiments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Legal and Environmental Matters [Abstract] | |
Schedule of Loss Contingencies by Contingency [Table Text Block] | We maintain reserves for various contingent liabilities as follows (dollar amounts in millions): March 31, 2022 December 31, 2021 Environmental reserves $ 24 $ 25 Other reserves — — Total contingencies 24 25 Current portion (included in Accounts payable and accrued liabilities) (1) (1) Long-term portion $ 23 $ 24 |
Product Warranty (Tables)
Product Warranty (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The activity in warranty reserves for the three months ended March 31, 2022 and 2021, is summarized in the following table (dollar amounts in millions): Three Months Ended March 31, 2022 2021 Beginning balance $ 7 $ 8 Accrued to expense 1 — Payments made — — Total warranty reserves 8 8 Current portion of warranty reserves (included in Accounts payable and accrued liabilities) (2) (2) Long-term portion of warranty reserves (included in Other long-term liabilities) $ 6 $ 6 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | e following table summarizes our net periodic pension cost for our defined benefit pension and postretirement plans during the three months ended March 31, 2022 and 2021 (dollar amounts in millions): Three Months Ended March 31, 2022 2021 Service cost $ 1 $ — Other components of net periodic pension cost 1 : Interest cost 2 2 Expected return on plan assets (2) (3) Amortization of prior service cost — — Amortization of net loss 1 1 Net periodic pension cost $ 2 $ 1 1 |
Other Comprehensive Income Ot_2
Other Comprehensive Income Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | comprehensive loss is provided in the following table for the three months ended March 31, 2022 and 2021 (dollar amounts in millions): Pension Translation Adjustments Other Total Balance at December 31, 2021 $ (76) $ (96) $ (1) $ (174) Reclassified to income statement, net of taxes 1 1 — — 1 Translation adjustments — 23 — 23 Balance at March 31, 2022 $ (75) $ (73) $ (1) $ (149) Pension Translation Adjustments Other Total Balance at December 31, 2020 $ (81) $ (68) $ (2) $ (151) Reclassified to income statement, net of taxes 1 — — — — Translation adjustments — (7) — (7) Balance at March 31, 2021 $ (81) $ (75) $ (2) $ (157) |
Other Operating and Non-Operati
Other Operating and Non-Operating Income (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | |
Schedule of Other Nonoperating Income (Expense) | OTHER OPERATING AND NON-OPERATING ITEMS Other operating credits and charges, net During the three months ended March 31, 2022, we recognized a gain of $39 million on the sale of our 50% interest in two joint ventures. See Note 7 above. In addition, we incurred severance and other charges of $1 million related to certain reorganizations. During the three months ended March 31, 2021, we recorded a gain of $1 million related to the sale of assets previously classified as held for sale, offset by other expenses, including severance associated with certain reorganizations within the corporate office. Other non-operating items During the three months ended March 31, 2022, we recorded realized foreign currency losses of $9 million primarily related to the strengthening of the Chilean peso and Brazilian real. During the three months ended March 31, 2021, we recorded an early debt extinguishment charge of $11 million related to the redemption of our 2024 Senior Notes, offset by a foreign currency gain of $1 million. |
Selected Segment Data (Tables)
Selected Segment Data (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended March 31, 2022 2021 Net sales Siding $ 332 $ 285 OSB 744 539 EWP 170 123 South America 67 53 Other 26 18 Intersegment sales (1) — Total sales $ 1,337 $ 1,017 PROFIT BY SEGMENT Net income $ 483 $ 320 Add (deduct): Net loss attributed to noncontrolling interest 1 1 Income attributed to LP 484 320 Provision for income taxes 139 96 Depreciation and amortization 32 29 Stock-based compensation expense 7 1 Other operating credits and charges, net (38) — Loss on early debt extinguishment — 11 Interest expense 3 5 Investment income (1) — Other non-operating items 10 (1) Adjusted EBITDA $ 636 $ 461 Siding $ 83 $ 90 OSB 505 354 EWP 38 7 South America 25 21 Other (6) (5) Corporate (9) (6) Adjusted EBITDA $ 636 $ 461 |
Basis For Presentation (Details
Basis For Presentation (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Repayments of Long-term Debt | $ 0 | $ 359 | |
Borrowings under revolving credit facility | 0 | $ 350 | |
Cash and cash equivalents | $ 624 | $ 358 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 1,337 | $ 1,017 |
Siding [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 332 | 285 |
OSB [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 744 | 539 |
EWP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 170 | 123 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 26 | 18 |
South America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 67 | 53 |
Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (1) | 0 |
Value-add [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 945 | 686 |
Value-add [Member] | Siding [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 330 | |
Value-add [Member] | OSB [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 406 | 254 |
Value-add [Member] | EWP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 144 | 100 |
Value-add [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | South America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 64 | 50 |
Value-add [Member] | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (1) | 0 |
Value-add [Member] | SmartSide siding [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 336 | 291 |
Value-add [Member] | SmartSide siding [Member] | Siding [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 330 | 282 |
Value-add [Member] | SmartSide siding [Member] | OSB [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | SmartSide siding [Member] | EWP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | SmartSide siding [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | SmartSide siding [Member] | South America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 6 | 9 |
Value-add [Member] | SmartSide siding [Member] | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | OSB -Structural Solutions [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 295 | |
Value-add [Member] | OSB -Structural Solutions [Member] | Siding [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Value-add [Member] | OSB -Structural Solutions [Member] | OSB [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 406 | 254 |
Value-add [Member] | OSB -Structural Solutions [Member] | EWP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | OSB -Structural Solutions [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | OSB -Structural Solutions [Member] | South America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 58 | 41 |
Value-add [Member] | OSB -Structural Solutions [Member] | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (1) | 0 |
Value-add [Member] | I Joist [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 79 | |
Value-add [Member] | I Joist [Member] | EWP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 79 | 48 |
Value-add [Member] | LVL [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 65 | 43 |
Value-add [Member] | LVL [Member] | Siding [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | LVL [Member] | OSB [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | LVL [Member] | EWP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 65 | 43 |
Value-add [Member] | LVL [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | LVL [Member] | South America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | LVL [Member] | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Value-add [Member] | LSL [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 8 | |
Value-add [Member] | LSL [Member] | Siding [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Value-add [Member] | LSL [Member] | OSB [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Value-add [Member] | LSL [Member] | EWP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 8 | |
Value-add [Member] | LSL [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Value-add [Member] | LSL [Member] | South America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Value-add [Member] | LSL [Member] | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | (1) | 0 |
Commodity | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 345 | 294 |
Commodity | Siding [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | OSB [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 334 | 282 |
Commodity | EWP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 11 | 13 |
Commodity | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | South America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | OSB - commodity [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 334 | 281 |
Commodity | OSB - commodity [Member] | Siding [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | OSB - commodity [Member] | OSB [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 334 | 282 |
Commodity | OSB - commodity [Member] | EWP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | OSB - commodity [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | OSB - commodity [Member] | South America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | OSB - commodity [Member] | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | |
Commodity | Plywood [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 11 | 13 |
Commodity | Plywood [Member] | Siding [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | Plywood [Member] | OSB [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | Plywood [Member] | EWP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 11 | 13 |
Commodity | Plywood [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | Plywood [Member] | South America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Commodity | Plywood [Member] | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 0 | 0 |
Other Product Types | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 48 | 37 |
Other Product Types | Other [Member] | Siding [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2 | 3 |
Other Product Types | Other [Member] | OSB [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 4 | 3 |
Other Product Types | Other [Member] | EWP [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 14 | 11 |
Other Product Types | Other [Member] | Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 18 | |
Other Product Types | Other [Member] | South America | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | 2 | $ 3 |
Other Product Types | Other [Member] | Intersegment | ||
Disaggregation of Revenue [Line Items] | ||
Net sales | $ 0 |
Earnings per Share (Details)
Earnings per Share (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Weighted average common shares outstanding - basic | 86,000,000 | 106,000,000 |
Dilutive effect of employee stock plans | 1,000,000 | 1,000,000 |
Shares used for diluted earnings per share | 86,000,000 | 107,000,000 |
Net income per share - basic | $ 5.64 | $ 3.02 |
Net income per share - diluted | $ 5.60 | $ 3 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Senior unsecured notes, maturing 2029 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 324 | $ 358 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Trade receivables | $ 305 | $ 172 |
Income tax receivable | 0 | 1 |
Other receivables | 17 | 20 |
Allowance for doubtful accounts | (2) | (2) |
Total | $ 320 | $ 191 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory [Line Items] | ||
Logs | $ 86 | $ 59 |
Other raw materials | 69 | 59 |
Semi-finished inventory | 38 | 38 |
Finished products | 189 | 168 |
Total | $ 382 | $ 323 |
Discontinued Operations and Dis
Discontinued Operations and Disposal Groups (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Proceeds from Divestiture of Businesses | $ 59 | $ 0 |
Income (Loss) from Equity Method Investments | $ 5 | $ 2 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Goodwill and other intangible assets | $ 19 | $ 19 |
Productive Land [Member] | ||
Goodwill [Line Items] | ||
Timber and Timberlands | 31 | 31 |
Amortization of Intangible Assets | (1) | |
Developed Technology Rights [Member] | ||
Goodwill [Line Items] | ||
Amortization of Intangible Assets | (1) | |
Finite-Lived Intangible Assets, Net | 16 | 17 |
Other Intangible Assets [Member] | ||
Goodwill [Line Items] | ||
Amortization of Intangible Assets | 0 | |
Finite-Lived Intangible Assets, Net | $ 2 | $ 2 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Dec. 31, 2021 | |
Business Combination, Step Acquisition [Abstract] | ||
Net loss attributable to noncontrolling interest, exclusive of impairment | $ (1) | |
Redeemable noncontrolling interest | $ 3 | $ 4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Percent | 22.00% | 23.00% |
Other Tax Expense (Benefit) | $ 9 | $ 5 |
Estimated annual tax rate | 24.00% | 25.00% |
Compensation Related Costs, S_2
Compensation Related Costs, Share Based Payments (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Other Selling, General and Administrative Expense | $ 7 | $ 1 |
Unrecognized stock compensation | $ 36 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 135,381 | |
Performance Shares | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 88,239 | |
Performance Shares | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 70.55 |
Commiments and Contingencies _2
Commiments and Contingencies Commiments and Contingencies (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Total contingencies | $ 23 | $ 24 |
Accrual for Environmental Loss Contingencies, Gross | 24 | 25 |
Current portion (included in Accounts payable and accrued liabilities) | (1) | (1) |
Long-term portion | 23 | 24 |
Environmental reserves | ||
Loss Contingencies [Line Items] | ||
Total contingencies | 24 | 25 |
Other reserves | ||
Loss Contingencies [Line Items] | ||
Total contingencies | $ 0 | $ 0 |
Product Warranty (Details)
Product Warranty (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning Balance | $ 7 | $ 8 |
Accrued to expense | 1 | 0 |
Payments made | 0 | 0 |
Total warranty reserves | 8 | 8 |
Current portion of warranty reserves | (2) | (2) |
Long-term portion of warranty reserves | $ 6 | $ 6 |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||
Service cost | $ 1 | $ 0 |
Interest cost | 2 | 2 |
Expected return on plan assets | (2) | (3) |
Amortization of Prior Service Cost | 0 | 0 |
Amortization of net loss | 1 | 1 |
Net periodic pension cost | $ 2 | $ 1 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Beginning Balance | $ (174) | |
Ending Balance | (149) | |
Foreign currency translation adjustments | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 23 | $ (7) |
Amortization of pension and post-retirement prior service costs and net loss | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1 | 0 |
AOCI Attributable to Parent [Member] | ||
Beginning Balance | (174) | (151) |
Ending Balance | $ (149) | $ (157) |
Other Operating and Non-Opera_2
Other Operating and Non-Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Nonoperating Income (Expense) [Abstract] | ||
Investment income, net of adjustments | $ 1 | $ 0 |
Interest Expense | (3) | (5) |
Investment income | 1 | 0 |
Gain (Loss) on Extinguishment of Debt | 0 | (11) |
Foreign currency gain (loss) | (9) | 1 |
Other non-operating items | (10) | (10) |
Product line discontinuance charges | 1 | |
Other Operating Charges And Credits, Net | 38 | $ 0 |
Restructuring Charges | $ (1) |
Selected Segment Data (Details)
Selected Segment Data (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 1,337 | $ 1,017 |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 483 | 320 |
Net loss attributed to noncontrolling interest | 1 | 1 |
Net Income (Loss) Attributable to Parent | 484 | 320 |
Provision for income taxes | 139 | 96 |
Depreciation and amortization | 32 | 29 |
Stock-based compensation expense | (7) | (1) |
Other operating income (expense) exclusive of product discontinuance charges | (38) | 0 |
Product line discontinuance charges | (1) | |
Gain (Loss) on Extinguishment of Debt | 0 | 11 |
Interest Expense | 3 | 5 |
Investment income, net of adjustments | 1 | 0 |
Other Nonoperating Income Expense, Net of Debt Extinguishment | (10) | 1 |
Adjusted EBITDA | 636 | 461 |
Value-add [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 945 | 686 |
Value-add [Member] | LSL [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 8 | |
Siding [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 332 | 285 |
Adjusted EBITDA | 83 | 90 |
Siding [Member] | Value-add [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 330 | |
Siding [Member] | Value-add [Member] | LSL [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | |
OSB [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 744 | 539 |
Adjusted EBITDA | 505 | 354 |
OSB [Member] | Value-add [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 406 | 254 |
OSB [Member] | Value-add [Member] | LSL [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | |
EWP [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 170 | 123 |
Adjusted EBITDA | 38 | 7 |
EWP [Member] | Value-add [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 144 | 100 |
EWP [Member] | Value-add [Member] | LSL [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 8 | |
Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 26 | 18 |
Net Income (Loss) Attributable to Parent | 484 | 320 |
Adjusted EBITDA | (6) | (5) |
Other [Member] | Value-add [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | 0 |
Other [Member] | Value-add [Member] | LSL [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 0 | |
Corporate Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Adjusted EBITDA | (9) | (6) |
Intersegment | ||
Segment Reporting Information [Line Items] | ||
Net sales | (1) | 0 |
Intersegment | Value-add [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | (1) | 0 |
Intersegment | Value-add [Member] | LSL [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | (1) | 0 |
South America | ||
Segment Reporting Information [Line Items] | ||
Net sales | 67 | 53 |
Adjusted EBITDA | 25 | 21 |
South America | Value-add [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 64 | 50 |
South America | Value-add [Member] | LSL [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) shares in Thousands, $ in Millions | 1 Months Ended | 3 Months Ended | |
May 03, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | |
Subsequent Event [Line Items] | |||
Payments for Repurchase of Common Stock | $ 182 | $ 104 | $ 122 |
Common stock, Shares acquired | 2,900 | ||
Common Stock [Member] | |||
Subsequent Event [Line Items] | |||
Common stock, Shares acquired | (2,000) | (2,000) |