Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 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 | 1610 West End Avenue | |
Entity Address, Address Line Two | Suite 200 | |
City Area Code | Nashville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 37203 | |
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 | Sep. 30, 2022 | |
Entity File Number | 1-7107 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 71,695,455 | |
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 | 9 Months Ended |
Sep. 30, 2022 | |
Legal and Environmental Matters [Abstract] | |
Commiments and Contingencies | COMMITMENTS AND CONTINGENCIES We maintain reserves for various contingent liabilities as follows (dollar amounts in millions): September 30, 2022 December 31, 2021 Environmental reserves $ 27 $ 25 Other reserves — — Total contingencies 27 25 Current portion (included in Accounts payable and accrued liabilities) (1) (1) Long-term portion $ 26 $ 24 Estimates of our loss contingencies are based on various assumptions and judgments. Due to the numerous uncertainties and variables associated with these assumptions and judgments, both the precision and reliability of the resulting estimates of the related contingencies are subject to substantial uncertainties. We regularly monitor our estimated exposure to contingencies and, as additional information becomes known, may change our estimates significantly. While no estimate of the range of any such change can be made at this time, the amount that we may ultimately pay in connection with these matters could materially exceed, in either the near term or the longer term, the amounts accrued to date. Our estimates of our loss contingencies do not reflect potential future recoveries from insurance carriers except to the extent that recovery may, from time to time, be deemed probable as a result of an insurer’s agreement to payment terms. 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. |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 852 | $ 1,018 | $ 3,149 | $ 3,080 |
Cost of sales | (620) | (513) | (1,778) | (1,423) |
Gross Profit | 232 | 505 | 1,370 | 1,657 |
Selling, general, and administrative expenses | (67) | (58) | (196) | (155) |
Other Operating Charges And Credits, Net | 7 | 2 | 17 | 5 |
Income from operations | 172 | 448 | 1,191 | 1,507 |
Non-operating income (expense): | ||||
Interest Expense | (3) | (4) | (9) | (12) |
Investment income | 5 | 0 | 8 | 1 |
Other non-operating items | (3) | (2) | (11) | (13) |
Income before income taxes | 172 | 442 | 1,178 | 1,482 |
Provision for income taxes | (44) | (111) | (284) | (350) |
Income (Loss) from Equity Method Investments, Net of Dividends or Distributions | 1 | 1 | 4 | 3 |
Income from continuing operations | 129 | 332 | 898 | 1,134 |
Income from discontinued operations, net of income taxes | 97 | 33 | 196 | 47 |
Net income | 226 | 365 | 1,093 | 1,182 |
Net loss attributed to noncontrolling interest | 0 | 0 | 1 | 1 |
Net income attributed to LP | $ 226 | $ 365 | $ 1,094 | $ 1,183 |
Net income attributed to LP per share of common stock: | ||||
Income per share continuing operations - basic (in dollars per share) | $ 1.75 | $ 3.55 | $ 11.23 | $ 11.34 |
Income per share discontinued operations - basic (in dollars per share) | 1.32 | 0.35 | 2.45 | 0.47 |
Net income per share - basic (in dollars per share) | 3.07 | 3.90 | 13.67 | 11.81 |
Income per share continuing operations - diluted (in dollars per share) | 1.74 | 3.52 | 11.16 | 11.26 |
Income per share discontinued operations - diluted (in dollars per share) | 1.31 | 0.35 | 2.43 | 0.47 |
Net income per share - diluted (in dollars per share) | $ 3.05 | $ 3.87 | $ 13.59 | $ 11.73 |
Average shares of common stock used to compute net income per share: | ||||
Basic (in shares) | 74 | 94 | 80 | 100 |
Diluted (in shares) | 74 | 94 | 80 | 101 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 226 | $ 365 | $ 1,093 | $ 1,182 |
Other comprehensive income (loss) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (13) | (21) | (22) | (21) |
Other comprehensive income (loss), net of tax | (9) | (19) | (16) | (18) |
Comprehensive Income (Loss), Net of Tax, Including Portion Attributable to Noncontrolling Interest | 216 | 346 | 1,077 | 1,164 |
Comprehensive Income (Loss), Net of Tax, Attributable to Noncontrolling Interest | 0 | 0 | ||
Comprehensive income (loss) attributed to LP | 216 | 346 | 1,078 | 1,165 |
Translation Adjustments | ||||
Other comprehensive income (loss) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (13) | (21) | (22) | (21) |
Pension | ||||
Other comprehensive income (loss) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ 3 | $ 2 | $ 6 | $ 3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 469 | $ 358 |
Receivables, net of allowance for doubtful accounts of $1 million as of September 30, 2022, and December 31, 2021 | 171 | 169 |
Inventories | 337 | 278 |
Prepaid expenses and other current assets | 24 | 17 |
Current assets of discontinued operations | 0 | 68 |
Total current assets | 1,001 | 890 |
Timber and timberlands | 39 | 42 |
Property, plant, and equipment, net | 1,215 | 1,039 |
Operating lease assets | 44 | 50 |
Goodwill and other intangible assets | 37 | 39 |
Investments in and advances to affiliates | 7 | 7 |
Restricted Cash, Noncurrent | 14 | 13 |
Other assets | 23 | 25 |
Deferred Tax Assets, Deferred Income | 4 | 2 |
Long-term assets of discontinued operations | 0 | 87 |
Total assets | 2,383 | 2,194 |
LIABILITIES AND EQUITY | ||
Accounts payable and accrued liabilities | 342 | 304 |
Accrued Income Taxes, Current | 88 | 13 |
Current liabilities of discontinued operations | 0 | 34 |
Total current liabilities | 430 | 351 |
Long-term Debt and Lease Obligation | 346 | 346 |
Deferred Income Tax Liabilities, Net | 107 | 86 |
Operating Lease liability, noncurrent | 40 | 44 |
Loss Contingency Accrual | 26 | 24 |
Other long-term liabilities | 69 | 63 |
Long-term liabilities of discontinued operations | 0 | 42 |
Liabilities | 1,019 | 955 |
Redeemable noncontrolling interest | 3 | 4 |
Stockholders' equity: | ||
Common stock, $1 par value, 200,000,000 shares authorized; 87,986,865 and 71,690,061 shares issued and outstanding, respectively, as of September 30, 2022; and 102,415,883 and 85,636,154 shares issued and outstanding, respectively, as of December 31, 2021 | 88 | 102 |
Additional paid-in capital | 459 | 458 |
Retained earnings | 1,395 | 1,239 |
Treasury stock, 16,296,804 shares and 16,779,729 shares, at cost as of September 30, 2022, and December 31, 2021, respectively | (390) | (390) |
Accumulated comprehensive loss | (190) | (174) |
Total stockholders' equity | 1,361 | 1,235 |
Total liabilities and stockholders' equity | $ 2,383 | $ 2,194 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Cash Flows [Abstract] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 1,093 | $ 1,182 |
Adjustments to net income: | ||
Depreciation and amortization | 99 | 88 |
Equity Method Investment, Realized Gain (Loss) on Disposal | (157) | 0 |
Deferred Income Tax Expense (Benefit) | 27 | 15 |
Gain (Loss) on Extinguishment of Debt | 0 | 11 |
Other adjustments, net | 34 | 7 |
Receivables | (20) | (59) |
Prepaid expenses and other current assets | (11) | (5) |
Inventories | (72) | (66) |
Accounts payable and accrued liabilities | 40 | 64 |
Income taxes payable, net of receivables | (70) | (46) |
Net cash provided by operating activities | 1,103 | 1,283 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Property, plant, and equipment additions | (282) | (133) |
Proceeds from Divestiture of Businesses | 265 | 0 |
Other investing activities | 3 | 3 |
Net cash used in investing activities | (14) | (131) |
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 | (53) | (50) |
Purchase of stock | (900) | (987) |
Other financing activities | (15) | (12) |
Net cash used in financing activities | (968) | (1,058) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (11) | (10) |
Net increase in cash, cash equivalents, and restricted cash | 111 | 84 |
Cash, cash equivalents and restricted cash at beginning of period | 371 | 535 |
Cash, cash equivalents and restricted cash at end of period | 482 | 620 |
Income Taxes Paid, Net | 242 | 305 |
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | 14 | 16 |
Capital Expenditures Incurred but Not yet Paid | $ 44 | $ 42 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - 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) | $ (151) | ||||
Total stockholders' equity | 1,234 | |||||
Net income | 320 | 320 | ||||
Dividends paid | (17) | (17) | ||||
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) | ||||
Common stock, Value, Shares acquired | $ (122) | $ (2) | (120) | |||
Compensation expense associated with stock-based compensation | 1 | 1 | ||||
Other comprehensive income | (6) | (6) | ||||
Common stock, Shares acquired | (2,000,000) | |||||
Net income | 1,183 | |||||
Purchase of stock | (987) | |||||
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 | |||||
Net income | 498 | 498 | ||||
Dividends paid | (16) | (16) | ||||
Issuance of shares under stock plans, amount | 1 | $ 2 | 1 | |||
Common stock, Value, Shares acquired | (465) | $ (7) | (458) | |||
Compensation expense associated with stock-based compensation | 4 | 4 | ||||
Other comprehensive income | 8 | 8 | ||||
Common stock, Shares acquired | (7,000,000) | |||||
Common Stock, Shares, Outstanding | 114,000,000 | |||||
Common Stock, Amount, Outstanding | $ 114 | |||||
Treasury Stock, Shares | 17,000,000 | |||||
Treasury Stock, amount | $ (390) | |||||
Additional paid-in capital | 446 | |||||
Retained earnings | 1,413 | |||||
Accumulated comprehensive loss | (149) | (149) | ||||
Total stockholders' equity | 1,433 | |||||
Net income | 365 | 365 | ||||
Dividends paid | (17) | (17) | ||||
Purchase of stock | (399) | |||||
Common stock, Value, Shares acquired | $ (7) | (392) | ||||
Compensation expense associated with stock-based compensation | 5 | 5 | ||||
Other comprehensive income | (19) | (19) | ||||
Common stock, Shares acquired | (7,000,000) | |||||
Common Stock, Shares, Outstanding | 107,000,000 | |||||
Common Stock, Amount, Outstanding | $ 107 | |||||
Treasury Stock, Shares | 17,000,000 | |||||
Treasury Stock, amount | $ (390) | |||||
Additional paid-in capital | 451 | |||||
Retained earnings | 1,369 | |||||
Accumulated comprehensive loss | (168) | (168) | ||||
Total stockholders' equity | $ 1,368 | |||||
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) | ||||
Common stock, Value, Shares acquired | $ (104) | $ (2) | (102) | |||
Compensation expense associated with stock-based compensation | 7 | 7 | ||||
Other comprehensive income | 24 | 24 | ||||
Common stock, Shares acquired | (2,000,000) | |||||
Net income | 1,094 | |||||
Purchase of stock | (900) | |||||
Common Stock, Shares, Outstanding | 101,000,000 | |||||
Common Stock, Amount, Outstanding | $ 101 | |||||
Treasury Stock, Shares | 16,000,000 | |||||
Treasury Stock, amount | $ (391) | |||||
Additional paid-in capital | 451 | |||||
Retained earnings | 1,601 | |||||
Accumulated comprehensive loss | (149) | |||||
Total stockholders' equity | 1,613 | |||||
Net income | 384 | 384 | ||||
Dividends paid | (18) | (18) | ||||
Issuance of shares under stock plans, amount | $ 2 | $ 2 | ||||
Taxes paid related to net settlement of stock-based awards | (1,000,000) | (1,000,000) | ||||
Common stock, Value, Shares acquired | $ (471) | $ 7 | (463) | |||
Compensation expense associated with stock-based compensation | 7 | 7 | ||||
Other comprehensive income | (31) | (31) | ||||
Common stock, Shares acquired | (7,000,000) | |||||
Common Stock, Shares, Outstanding | 94,000,000 | |||||
Common Stock, Amount, Outstanding | $ 94 | |||||
Treasury Stock, Shares | 16,000,000 | |||||
Treasury Stock, amount | $ (390) | |||||
Additional paid-in capital | 457 | |||||
Retained earnings | 1,505 | |||||
Accumulated comprehensive loss | (181) | (181) | ||||
Total stockholders' equity | 1,484 | |||||
Net income | 226 | |||||
Dividends paid | (16) | (16) | ||||
Issuance of shares under stock plans | 0 | |||||
Issuance of shares under stock plans, amount | 0 | $ 0 | 0 | |||
Purchase of stock | (325) | 320 | ||||
Common stock, Value, Shares acquired | $ (6) | |||||
Compensation expense associated with stock-based compensation | $ 2 | 2 | ||||
Other comprehensive income | (9) | |||||
Common stock, Shares acquired | (6,000,000) | |||||
Common Stock, Shares, Outstanding | 71,690,061 | 88,000,000 | ||||
Common Stock, Amount, Outstanding | $ 88 | |||||
Treasury Stock, Shares | 16,000,000 | |||||
Treasury Stock, amount | $ 390 | $ (390) | ||||
Additional paid-in capital | 459 | $ 459 | ||||
Retained earnings | 1,395 | $ 1,395 | ||||
Accumulated comprehensive loss | (190) | $ (190) | ||||
Total stockholders' equity | $ 1,361 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Sep. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends paid (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.16 | $ 0.16 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1 | $ 1 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 200,000,000 | 200,000,000 |
Common Stock, Shares, Issued | 87,986,865 | 102,415,883 |
Common Stock, Shares, Outstanding | 71,690,061 | 85,636,154 |
Treasury Stock, Shares | 16,296,804 | 16,779,729 |
Nature of Operations and Basis
Nature of Operations and Basis for Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Operations and Basis for Presentation | NATURE OF OPERATIONS AND 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 22 plants in our continuing operations across the U.S., Canada, Chile, and Brazil through foreign subsidiaries, an d it operates facilities through joint ventures. The principal customers for our building solutions are retailers, wholesalers, and homebuilding and industrial businesses in North America and South America, with limited sales to Asia, Australia, and Europe. References to "LP," the "Company," "we," "our," and "us" refer to Louisiana-Pacific Corporation and its consolidated subsidiaries as a whole. In August 2022, LP and one of its wholly-owned subsidiaries sold the assets related to the Engineered Wood Products (EWP) segment to P acific Woodtech Corporation, a Washington corporation, and Pacific Woodtech Canada Holdings Limited, a British Columbia limited company (collectively, the Purchaser) for $217 million in gross cash proceeds after taking into account working capital adjustments (including $3 million received subsequent to September 30, 2022). Upon closing, the Company entered into a transition services agreement (TSA) with the Purchaser, pursuant to which the Company agreed to support the various activities of the EWP segment for a period not to exceed eight months. We have classified the related assets and liabilities associated with the EWP segment as discontinued operations in our Condensed Consolidated Balance Sheets. The results of our EWP segment have been presented as discontinued operations in our Condensed Consolidated Statements of Income for all periods presented. See Note 7 –Discontinued Operations for additional information. Basis for Presentation The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (U.S. GAAP) for interim financial information. Accordingly, they do not include all the information and footnotes required by U.S. GAAP for complete consolidated financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included and are of a normal and recurring nature. These Condensed Consolidated Financial Statements and related Notes 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) | 9 Months Ended |
Sep. 30, 2022 | |
Disaggregation of Revenue [Abstract] | |
Revenue from Contract with Customer [Text Block] | 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 17 below, our reportable segments are Siding, Oriented Strand Board (OSB), and South America (dollar amounts in millions). Three Months Ended September 30, 2022 By product type and family: Siding OSB South America Other Inter-segment Total Value-add Siding Solutions $ 393 $ — $ 6 $ — $ — $ 399 OSB - Structural Solutions — 205 47 — — 251 393 205 53 — — 650 Commodity OSB - commodity — 180 — — — 180 Other Other products 1 3 — 17 — 22 $ 394 $ 388 $ 53 $ 17 $ (1) $ 852 Three Months Ended September 30, 2021 By product type and family: Siding OSB South America Other Inter-segment Total Value-add Siding Solutions $ 310 $ — $ 9 $ — $ — $ 319 OSB - Structural Solutions — 307 65 — — 372 310 307 75 — — 691 Commodity OSB - commodity — 290 — — — 290 Other Other products 3 4 2 30 (1) 38 $ 312 $ 600 $ 76 $ 30 $ (1) $ 1,018 Nine Months Ended September 30, 2022 By product type and family: Siding OSB South America Other Inter-segment Total Value-add Siding Solutions $ 1,079 $ — $ 18 $ — $ — $ 1,097 OSB - Structural Solutions — 995 172 — (2) 1,165 1,079 995 190 — (2) 2,262 Commodity OSB - commodity — 801 — — (1) 801 Other Other products 4 9 — 72 — 86 $ 1,083 $ 1,805 $ 190 $ 72 $ (2) $ 3,149 Nine Months Ended September 30, 2021 By product type and family: Siding OSB South America Other Inter-segment Total Value-add Siding Solutions $ 879 $ — $ 29 $ — $ — $ 908 OSB - Structural Solutions — 912 171 — — 1,082 879 912 200 — — 1,991 Commodity OSB - commodity — 997 — — — 997 Other Other products 9 9 3 73 (2) 93 $ 889 $ 1,917 $ 203 $ 73 $ (2) $ 3,080 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, promote sales of products, and 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 | 9 Months Ended |
Sep. 30, 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 and share amounts in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Income from continuing operations $ 129 $ 332 $ 898 $ 1,134 Net loss attributed to noncontrolling interest — — 1 1 Income attributed to LP from continuing operations 129 332 898 1,135 Income for discontinued operations, net of income taxes 97 33 196 47 Net income attributed to LP $ 226 $ 365 $ 1,094 $ 1,183 Weighted average common shares outstanding - basic 74 94 80 100 Dilutive effect of employee stock plans — — 1 1 Shares used for diluted earnings per share 74 94 80 101 Net income attributed to LP per share - basic: Continuing operations $ 1.75 $ 3.55 $ 11.23 $ 11.34 Discontinued operations 1.32 0.35 2.45 0.47 Net income attributed to LP per share - basic $ 3.07 $ 3.90 $ 13.67 $ 11.81 Net income attributed to LP per share – diluted: Continuing operations $ 1.74 $ 3.52 $ 11.16 $ 11.26 Discontinued operations 1.31 0.35 2.43 0.47 Net income attributed to LP per share - diluted $ 3.05 $ 3.87 $ 13.59 $ 11.73 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | 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 $276 million and $358 million as of September 30, 2022, and December 31, 2021, respectively, based on 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 is determined using published rates. There were no outstanding amounts borrowed under our Amended Credit Facility (defined below) as of September 30, 2022. |
Receivables
Receivables | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Receivables | RECEIVABLES Receivables consisted of the following (dollar amounts in millions): September 30, 2022 December 31, 2021 Trade receivables $ 147 $ 156 Other receivables 24 13 Income tax receivable — 1 Allowance for doubtful accounts (1) (1) Total $ 171 $ 169 Trade receivables are primarily generated by sales of our products to our wholesale and retail customers. Other receivables as of September 30, 2022, and December 31, 2021, primarily consist of sales tax receivables, vendor rebates, and other miscellaneous receivables. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 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): September 30, 2022 December 31, 2021 Logs $ 45 $ 50 Other raw materials 95 57 Semi-finished inventory 25 20 Finished products 172 150 Total $ 337 $ 278 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | CONTINUED OPERATIONS Engineered Wood Products (EWP) On August 1, 2022, the Company completed the sale of the assets related to the EWP segment to the Purchaser. As a result of the sale, the Company received $217 million in gross cash proceeds after taking into account working capital adjustments (including $3 million received subsequent to September 30, 2022). The Company paid $12 million in direct transaction costs, resulting in net proceeds of $205 million. The net carrying value of the EWP assets at the time of sale was $87 million, which resulted in a pre-tax gain of approximately $118 million within Income from discontinued operations in the Condensed Consolidated Statements of Income. Upon closing, the Company entered into the TSA with the Purchaser, pursuant to which the Company agreed to support the various activities of the EWP segment for a period not to exceed eight months. During the three months ended September 30, 2022, the Company collected $33 million on the Purchaser's behalf pursuant to the TSA. As of September 30, 2022, the Company has $14 million due to the Purchaser, which is included in the Condensed Consolidated Balance Sheets. The Company has classified the results of its EWP segment as discontinued operations in its Condensed Consolidated Statements of Income and we have classified the related assets and liabilities associated with the EWP segment as discontinued operations in our Condensed Consolidated Balance Sheets. EWP Joint Ventures In March 2022, we sold our 50% equity interest in two joint ventures that produce I-joists to Resolute Forest Products Inc. for $59 million. The total net carrying value of our equity method investment at the date of sale was $19 million, and we recognized a gain associated with the sale of $39 million within Income from discontinued operations in the Condensed Consolidated Statements of Income. The following table presents the financial results of the EWP segment (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net sales $ 67 $ 201 $ 455 $ 481 Cost of sales (54) (156) (352) (403) Gross profit 13 45 103 78 Selling, general, and administrative expenses (2) (5) (12) (15) Income from operations of discontinued operations 12 40 91 64 Other non-operating items — 5 — (1) Gain on disposal before income taxes 118 — 158 — Income from discontinued operations before income taxes 130 44 249 63 Provision for income taxes (33) (11) (53) (16) Income from discontinued operations, net of income taxes $ 97 $ 33 $ 196 $ 47 The following summarizes the total cash provided by operations and total cash used for investing activities related to the EWP segment and included in the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (in millions): Nine Months Ended September 30, 2022 2021 Net cash provided by discontinued operating activities $ 18 $ 30 Net cash provided by (used in) discontinued investing activities $ 258 $ (25) Net cash provided by discontinued investing activities for the nine months ended September 30, 2022, includes $59 million of proceeds from the sale of our 50% equity interest in two joint ventures that produce I-joists and $202 million of net proceeds from the sale of the EWP segment assets. The following table presents the aggregate carrying amounts of discontinued operations related to the EWP segment in the Condensed Consolidated Balance Sheets (in millions): December 31, 2021 Carrying amounts of assets included as part of discontinued operations: Accounts receivable, net $ 22 Inventories 46 Timber and timberlands 42 Property, plant, and equipment, net 30 Operating lease assets 1 Investments in and advances to affiliates 14 Total assets classified as discontinued operations in the Condensed Consolidated Balance Sheet $ 156 Carrying amounts of liabilities included as part of discontinued operations: Accounts payable and accrued liabilities $ 34 Other liabilities 42 Total liabilities classified as discontinued operations in the Condensed Consolidated Balance Sheet $ 76 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | 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 nine months ended September 30, 2022, are provided in the following table (dollar amounts in millions): Timber licenses 1 Goodwill Developed Technology Trademarks Beginning balance December 31, 2021 $ 30 $ 19 $ 17 $ 2 Amortization (2) — (1) — Ending balance September 30, 2022 $ 28 $ 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) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination, Step Acquisition [Abstract] | |
Redeemable Noncontrolling Interest | 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 September 30, 2022, were as follows (dollar amounts in millions): Beginning balance December 31, 2021 $ 4 Net loss attributed to noncontrolling interest (1) Ending balance September 30, 2022 $ 3 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES For interim periods, we recognize income tax expense by applying the estimated annual effective income tax rate to year-to-date results unless this method does not result in a reliable estimate of year-to-date income tax expense. Each period, the income tax accrual is adjusted to the latest estimate, and the difference from the previously accrued year-to-date balance is adjusted in the current quarter. Changes in profitability estimates in various jurisdictions will impact our quarterly effective income tax rates. The tax provision for income taxes from continuing operations for the nine months ended September 30, 2022 and 2021, reflected an estimated annual effective tax rate of 25% and 24%, respectively, excluding discrete items discussed below. The total effective tax rate for continuing operations for the three and nine months ended September 30, 2022, was 26% and 24%, compared to 25% and 24% for the comparable periods in 2021, respectively. We recognized net discrete tax benefits of $9 million and $7 million in the nine months ended September 30, 2022 and 2021, respectively. The discrete tax benefits primarily relate to excess tax benefits from stock-based compensation and changes to estimates in the prior year including our deferred tax rate. |
Impairments of Long-Lived Asset
Impairments of Long-Lived Assets | 9 Months Ended |
Sep. 30, 2022 | |
Asset Impairment Charges [Abstract] | |
Impairments of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETSWe review the carrying values of our long-lived assets for potential impairments and believe we have adequate support for the carrying values 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 September 30, 2022, there were no indications of impairment.We also review from time to time potential dispositions of various assets, considering current and anticipated economic and industry conditions, our strategic plan, and other relevant factors. Because a determination to dispose of particular assets can require management to make assumptions regarding the transaction structure of the disposition and to estimate the net sales proceeds, which may be less than previous estimates of undiscounted future net cash flows, we may be required to record impairment charges in connection with decisions to dispose of assets. |
Product Warranties
Product Warranties | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product Warranties | PRODUCT WARRANTIES We offer warranties on the sale of most of our products and record an accrual for estimated future claims. Such accruals are based upon historical experience and management’s estimate of the level of future claims. The activity in warranty reserves for the three and nine months ended September 30, 2022 and 2021, is summarized in the following table (dollar amounts in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Beginning balance $ 7 $ 8 $ 7 $ 8 Accrued to expense 1 — 3 1 Payments made (1) — (2) (1) Total warranty reserves 8 8 8 8 Current portion of warranty reserves (included in Accounts payable and accrued liabilities) (2) (2) (2) (2) Long-term portion of warranty reserves (included in Other long-term liabilities) $ 6 $ 6 $ 6 $ 6 |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 9 Months Ended |
Sep. 30, 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 and nine months ended September 30, 2022 and 2021 (dollar amounts in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Service cost $ 1 $ — $ 3 $ 1 Other components of net periodic pension cost 1 : Interest cost 2 2 5 5 Expected return on plan assets (2) (3) (5) (10) Amortization of prior service cost — — — — Amortization of net loss 1 1 4 4 Loss due to settlement 4 — 4 — Net periodic pension cost $ 7 $ 1 $ 11 $ 2 1 Other components of net periodic pension cost are included in Other non-operating items on our Condensed Consolidated Statements of Income. In November 2021, the Company initiated the termination of our frozen U.S. and Canadian defined benefit pension plans (collectively, the Plan), which would result in the full settlement of the Company's Plan obligations. During the three months ended September 30, 2022, we made lump-sum pension distributions and purchased non-participating group annuity contracts totaling $33 million which triggered partial settlement accounting for the Plan. Accordingly, reflected in the table above is a non-cash pre-tax loss due to settlement of $4 million for the three and nine months ended September 30, 2022 representing the recognition of a pro rata portion of the unrecognized loss recorded within Accumulated comprehensive loss. The changes recognized in Other comprehensive loss were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net actuarial gain (loss) and prior service (cost) arising during the period, net of tax $ (1) $ — $ (1) $ — Amortization of actuarial loss, prior service cost and settlements, net of tax $ 4 $ 2 $ 7 $ 3 Total amounts recognized in Other comprehensive income $ 3 $ 2 $ 6 $ 3 Remaining Plan participants will receive their full accrued benefits from Plan assets by electing either lump-sum distributions or annuity contracts with a qualifying third-party annuity provider. The remaining distribution of Plan assets pursuant to the termination will not be made until the Plan termination satisfies all regulatory requirements. The remaining Plan termination is expected to be substantially complete in the fourth quarter of 2022 and result in pension settlement expense, which will be determined based on prevailing market conditions, the actual lump-sum distributions, and annuity purchase rates at the date of distribution. Upon final settlement, we expect to recognize pre-tax pension settlement charges that will include (1) a non-cash charge for the recognition of all pre-tax actuarial losses in Accumulated comprehensive loss ($93 million as of September 30, 2022) and (2) any cash contributions to settle the Plan’s obligations ($9 million net projected benefit obligation as of September 30, 2022). The actual amount of the settlement charges and any potential cash contribution will depend on various factors, including interest rates, Plan asset returns, and the lump-sum election rate. |
Accumulated Comprehensive Loss
Accumulated Comprehensive Loss | 9 Months Ended |
Sep. 30, 2022 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Comprehensive Loss | ACCUMULATED COMPREHENSIVE LOSS Accumulated comprehensive loss is provided in the following table for the three months ended September 30, 2022 and 2021 (dollar amounts in millions): Pension Translation Adjustments Other Total Balance at June 30, 2022 $ (74) $ (105) $ (1) $ (181) Reclassified to income statement, net of taxes 1 3 — — 3 Translation adjustments — (13) — (13) Balance at September 30, 2022 $ (71) $ (118) $ (1) $ (190) Pension Translation Adjustments Other Total Balance at June 30, 2021 $ (80) $ (68) $ (2) $ (149) Reclassified to income statement, net of taxes 1 2 — — 2 Translation adjustments — (21) — (21) Balance at September 30, 2021 $ (78) $ (89) $ (2) $ (168) 1 Amounts of actuarial loss and prior service cost are components of net periodic benefit cost. See Note 14 above for additional details. Accumulated comprehensive loss is provided in the following table for the nine months ended September 30, 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 6 — — 6 Translation adjustments — (22) — (22) Balance at September 30, 2022 $ (71) $ (118) $ (1) $ (190) Pension Translation Adjustments Other Total Balance at December 31, 2020 $ (81) $ (68) $ (2) $ (151) Reclassified to income statement, net of taxes 1 3 — — 3 Translation adjustments — (21) — (21) Balance at September 30, 2021 $ (78) $ (89) $ (2) $ (168) |
Other Operating and Non-Operati
Other Operating and Non-Operating Income (Notes) | 9 Months Ended |
Sep. 30, 2022 | |
Nonoperating Income (Expense) [Abstract] | |
Other Operating and Non-Operating Income | OTHER OPERATING AND NON-OPERATING ITEMS Other operating credits and charges, net Other operating credits and charges, net, is comprised of the following components (dollar amounts in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Insurance recoveries $ 2 $ 1 $ 15 $ 3 Reorganization charges (4) (1) (5) (1) Environmental costs — — (2) — Other 9 1 9 3 Other operating credits and charges, net $ 7 $ 2 $ 17 $ 5 Other non-operating items Other non-operating items is comprised of the following components (dollar amounts in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net periodic pension cost, excluding service cost $ (1) $ — $ (4) $ — Pension settlement charges (4) — (4) — Loss on early debt extinguishment — — — (11) Foreign currency gain (loss) $ 2 $ (2) $ (3) $ (2) Other $ 1 $ — $ 1 $ — Other non-operating items $ (3) $ (2) $ (11) $ (13) |
Selected Segment Data
Selected Segment Data | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Selected Segment Data | SELECTED SEGMENT DATA We operate in three segments: Siding, OSB, and South America. Our business units have been aggregated into these three 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. On June 21, 2022, LP reached an agreement for the sale of its EWP segment assets which subsequently closed on August 1, 2022. As a result of this transaction, the results of the EWP segment have been reclassified to discontinued operations and EWP is no longer a reportable segment of the Company. See "Note 7 –Discontinued Operations" for additional information. We evaluate the performance of our business segments based on net sales and Adjusted EBITDA. Accordingly, our chief operating decision maker evaluates performance and allocates resources based primarily on net sales and Adjusted EBITDA for our business segments. Adjusted EBITDA is a non-GAAP financial measure and is defined as income attributed to LP from continuing operations before interest expense, provision for income taxes, depreciation and amortization, and excludes stock-based compensation expense, loss on impairment attributed to LP, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items. Information about our business segments is as follows (dollar amounts in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net sales Siding $ 394 $ 312 $ 1,083 $ 889 OSB 388 600 1,805 1,917 South America 53 76 190 203 Other 17 30 72 73 Intersegment sales (1) (1) (2) (2) Total sales $ 852 $ 1,018 $ 3,149 3,080 PROFIT BY SEGMENT Net income $ 226 $ 365 $ 1,093 $ 1,182 Add (deduct): Net loss attributed to noncontrolling interest — — 1 1 Income from discontinued operations, net of income taxes (97) (33) (196) (47) Income attributed to LP from continuing operations 129 332 898 1,135 Provision for income taxes 44 111 284 350 Depreciation and amortization 32 28 96 85 Stock-based compensation expense 2 5 15 10 Other operating credits and charges, net (7) (2) (17) (5) Loss on early debt extinguishment — — — 11 Interest expense 3 4 9 12 Investment income (5) — (8) (1) Other non-operating items (1) 2 7 2 Pension settlement charges 4 — 4 — Adjusted EBITDA $ 200 $ 480 $ 1,289 $ 1,600 Siding $ 90 $ 73 $ 251 $ 240 OSB 113 381 1,021 1,300 South America 14 37 65 91 Other (7) (3) (19) (11) Corporate (11) (8) (29) (22) Adjusted EBITDA $ 200 $ 480 $ 1,289 $ 1,600 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended September 30, 2022 By product type and family: Siding OSB South America Other Inter-segment Total Value-add Siding Solutions $ 393 $ — $ 6 $ — $ — $ 399 OSB - Structural Solutions — 205 47 — — 251 393 205 53 — — 650 Commodity OSB - commodity — 180 — — — 180 Other Other products 1 3 — 17 — 22 $ 394 $ 388 $ 53 $ 17 $ (1) $ 852 Three Months Ended September 30, 2021 By product type and family: Siding OSB South America Other Inter-segment Total Value-add Siding Solutions $ 310 $ — $ 9 $ — $ — $ 319 OSB - Structural Solutions — 307 65 — — 372 310 307 75 — — 691 Commodity OSB - commodity — 290 — — — 290 Other Other products 3 4 2 30 (1) 38 $ 312 $ 600 $ 76 $ 30 $ (1) $ 1,018 Nine Months Ended September 30, 2022 By product type and family: Siding OSB South America Other Inter-segment Total Value-add Siding Solutions $ 1,079 $ — $ 18 $ — $ — $ 1,097 OSB - Structural Solutions — 995 172 — (2) 1,165 1,079 995 190 — (2) 2,262 Commodity OSB - commodity — 801 — — (1) 801 Other Other products 4 9 — 72 — 86 $ 1,083 $ 1,805 $ 190 $ 72 $ (2) $ 3,149 Nine Months Ended September 30, 2021 By product type and family: Siding OSB South America Other Inter-segment Total Value-add Siding Solutions $ 879 $ — $ 29 $ — $ — $ 908 OSB - Structural Solutions — 912 171 — — 1,082 879 912 200 — — 1,991 Commodity OSB - commodity — 997 — — — 997 Other Other products 9 9 3 73 (2) 93 $ 889 $ 1,917 $ 203 $ 73 $ (2) $ 3,080 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share (dollar and share amounts in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Income from continuing operations $ 129 $ 332 $ 898 $ 1,134 Net loss attributed to noncontrolling interest — — 1 1 Income attributed to LP from continuing operations 129 332 898 1,135 Income for discontinued operations, net of income taxes 97 33 196 47 Net income attributed to LP $ 226 $ 365 $ 1,094 $ 1,183 Weighted average common shares outstanding - basic 74 94 80 100 Dilutive effect of employee stock plans — — 1 1 Shares used for diluted earnings per share 74 94 80 101 Net income attributed to LP per share - basic: Continuing operations $ 1.75 $ 3.55 $ 11.23 $ 11.34 Discontinued operations 1.32 0.35 2.45 0.47 Net income attributed to LP per share - basic $ 3.07 $ 3.90 $ 13.67 $ 11.81 Net income attributed to LP per share – diluted: Continuing operations $ 1.74 $ 3.52 $ 11.16 $ 11.26 Discontinued operations 1.31 0.35 2.43 0.47 Net income attributed to LP per share - diluted $ 3.05 $ 3.87 $ 13.59 $ 11.73 |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Receivables consisted of the following (dollar amounts in millions): September 30, 2022 December 31, 2021 Trade receivables $ 147 $ 156 Other receivables 24 13 Income tax receivable — 1 Allowance for doubtful accounts (1) (1) Total $ 171 $ 169 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, 2022 December 31, 2021 Logs $ 45 $ 50 Other raw materials 95 57 Semi-finished inventory 25 20 Finished products 172 150 Total $ 337 $ 278 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The following table presents the financial results of the EWP segment (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net sales $ 67 $ 201 $ 455 $ 481 Cost of sales (54) (156) (352) (403) Gross profit 13 45 103 78 Selling, general, and administrative expenses (2) (5) (12) (15) Income from operations of discontinued operations 12 40 91 64 Other non-operating items — 5 — (1) Gain on disposal before income taxes 118 — 158 — Income from discontinued operations before income taxes 130 44 249 63 Provision for income taxes (33) (11) (53) (16) Income from discontinued operations, net of income taxes $ 97 $ 33 $ 196 $ 47 The following summarizes the total cash provided by operations and total cash used for investing activities related to the EWP segment and included in the Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021 (in millions): Nine Months Ended September 30, 2022 2021 Net cash provided by discontinued operating activities $ 18 $ 30 Net cash provided by (used in) discontinued investing activities $ 258 $ (25) The following table presents the aggregate carrying amounts of discontinued operations related to the EWP segment in the Condensed Consolidated Balance Sheets (in millions): December 31, 2021 Carrying amounts of assets included as part of discontinued operations: Accounts receivable, net $ 22 Inventories 46 Timber and timberlands 42 Property, plant, and equipment, net 30 Operating lease assets 1 Investments in and advances to affiliates 14 Total assets classified as discontinued operations in the Condensed Consolidated Balance Sheet $ 156 Carrying amounts of liabilities included as part of discontinued operations: Accounts payable and accrued liabilities $ 34 Other liabilities 42 Total liabilities classified as discontinued operations in the Condensed Consolidated Balance Sheet $ 76 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Goodwill [Line Items] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | Changes in goodwill and other intangible assets for the nine months ended September 30, 2022, are provided in the following table (dollar amounts in millions): Timber licenses 1 Goodwill Developed Technology Trademarks Beginning balance December 31, 2021 $ 30 $ 19 $ 17 $ 2 Amortization (2) — (1) — Ending balance September 30, 2022 $ 28 $ 19 $ 16 $ 2 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interest (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination, Step Acquisition [Abstract] | |
Redeemable Noncontrolling Interest [Table Text Block] | The components of redeemable noncontrolling interest as of September 30, 2022, were as follows (dollar amounts in millions): Beginning balance December 31, 2021 $ 4 Net loss attributed to noncontrolling interest (1) Ending balance September 30, 2022 $ 3 |
Commiments and Contingencies Co
Commiments and Contingencies Commiments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 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): September 30, 2022 December 31, 2021 Environmental reserves $ 27 $ 25 Other reserves — — Total contingencies 27 25 Current portion (included in Accounts payable and accrued liabilities) (1) (1) Long-term portion $ 26 $ 24 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The activity in warranty reserves for the three and nine months ended September 30, 2022 and 2021, is summarized in the following table (dollar amounts in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Beginning balance $ 7 $ 8 $ 7 $ 8 Accrued to expense 1 — 3 1 Payments made (1) — (2) (1) Total warranty reserves 8 8 8 8 Current portion of warranty reserves (included in Accounts payable and accrued liabilities) (2) (2) (2) (2) Long-term portion of warranty reserves (included in Other long-term liabilities) $ 6 $ 6 $ 6 $ 6 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following table summarizes our net periodic pension cost for our defined benefit pension and postretirement plans during the three and nine months ended September 30, 2022 and 2021 (dollar amounts in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Service cost $ 1 $ — $ 3 $ 1 Other components of net periodic pension cost 1 : Interest cost 2 2 5 5 Expected return on plan assets (2) (3) (5) (10) Amortization of prior service cost — — — — Amortization of net loss 1 1 4 4 Loss due to settlement 4 — 4 — Net periodic pension cost $ 7 $ 1 $ 11 $ 2 1 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The changes recognized in Other comprehensive loss were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net actuarial gain (loss) and prior service (cost) arising during the period, net of tax $ (1) $ — $ (1) $ — Amortization of actuarial loss, prior service cost and settlements, net of tax $ 4 $ 2 $ 7 $ 3 Total amounts recognized in Other comprehensive income $ 3 $ 2 $ 6 $ 3 |
Accumulated Comprehensive Loss
Accumulated Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated comprehensive loss is provided in the following table for the three months ended September 30, 2022 and 2021 (dollar amounts in millions): Pension Translation Adjustments Other Total Balance at June 30, 2022 $ (74) $ (105) $ (1) $ (181) Reclassified to income statement, net of taxes 1 3 — — 3 Translation adjustments — (13) — (13) Balance at September 30, 2022 $ (71) $ (118) $ (1) $ (190) Pension Translation Adjustments Other Total Balance at June 30, 2021 $ (80) $ (68) $ (2) $ (149) Reclassified to income statement, net of taxes 1 2 — — 2 Translation adjustments — (21) — (21) Balance at September 30, 2021 $ (78) $ (89) $ (2) $ (168) 1 Amounts of actuarial loss and prior service cost are components of net periodic benefit cost. See Note 14 above for additional details. Accumulated comprehensive loss is provided in the following table for the nine months ended September 30, 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 6 — — 6 Translation adjustments — (22) — (22) Balance at September 30, 2022 $ (71) $ (118) $ (1) $ (190) Pension Translation Adjustments Other Total Balance at December 31, 2020 $ (81) $ (68) $ (2) $ (151) Reclassified to income statement, net of taxes 1 3 — — 3 Translation adjustments — (21) — (21) Balance at September 30, 2021 $ (78) $ (89) $ (2) $ (168) |
Other Operating and Non-Opera_2
Other Operating and Non-Operating Income (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component [Table Text Block] | Other operating credits and charges, net, is comprised of the following components (dollar amounts in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Insurance recoveries $ 2 $ 1 $ 15 $ 3 Reorganization charges (4) (1) (5) (1) Environmental costs — — (2) — Other 9 1 9 3 Other operating credits and charges, net $ 7 $ 2 $ 17 $ 5 |
Schedule of Other Nonoperating Income (Expense) | Other non-operating items is comprised of the following components (dollar amounts in millions): Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net periodic pension cost, excluding service cost $ (1) $ — $ (4) $ — Pension settlement charges (4) — (4) — Loss on early debt extinguishment — — — (11) Foreign currency gain (loss) $ 2 $ (2) $ (3) $ (2) Other $ 1 $ — $ 1 $ — Other non-operating items $ (3) $ (2) $ (11) $ (13) |
Selected Segment Data (Tables)
Selected Segment Data (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2022 2021 2022 2021 Net sales Siding $ 394 $ 312 $ 1,083 $ 889 OSB 388 600 1,805 1,917 South America 53 76 190 203 Other 17 30 72 73 Intersegment sales (1) (1) (2) (2) Total sales $ 852 $ 1,018 $ 3,149 3,080 PROFIT BY SEGMENT Net income $ 226 $ 365 $ 1,093 $ 1,182 Add (deduct): Net loss attributed to noncontrolling interest — — 1 1 Income from discontinued operations, net of income taxes (97) (33) (196) (47) Income attributed to LP from continuing operations 129 332 898 1,135 Provision for income taxes 44 111 284 350 Depreciation and amortization 32 28 96 85 Stock-based compensation expense 2 5 15 10 Other operating credits and charges, net (7) (2) (17) (5) Loss on early debt extinguishment — — — 11 Interest expense 3 4 9 12 Investment income (5) — (8) (1) Other non-operating items (1) 2 7 2 Pension settlement charges 4 — 4 — Adjusted EBITDA $ 200 $ 480 $ 1,289 $ 1,600 Siding $ 90 $ 73 $ 251 $ 240 OSB 113 381 1,021 1,300 South America 14 37 65 91 Other (7) (3) (19) (11) Corporate (11) (8) (29) (22) Adjusted EBITDA $ 200 $ 480 $ 1,289 $ 1,600 |
Nature of Operations and Basi_2
Nature of Operations and Basis for Presentation (Details) $ in Millions | Aug. 01, 2022 | Nov. 03, 2022 USD ($) | Sep. 30, 2022 operatingPlant | Aug. 31, 2022 USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Operating Segments, Number Of Operating Plants | operatingPlant | 22 | |||
Discontinued Operations, Held-for-sale | EWP Segment Assets | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 217 | |||
Disposal Group, Including Discontinued Operation, Support Period | 8 months | |||
Discontinued Operations, Held-for-sale | EWP Segment Assets | Subsequent Event | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 3 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 852 | $ 1,018 | $ 3,149 | $ 3,080 |
Siding [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 394 | 312 | 1,083 | 889 |
OSB [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 388 | 600 | 1,805 | 1,917 |
Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 17 | 30 | 72 | 73 |
South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 53 | 76 | 190 | 203 |
Intersegment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1 | (1) | 2 | 2 |
Value-add [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 650 | 691 | 2,262 | 1,991 |
Value-add [Member] | Siding [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 393 | 310 | 1,079 | 879 |
Value-add [Member] | OSB [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 205 | 307 | 995 | 912 |
Value-add [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Value-add [Member] | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 53 | 75 | 190 | 200 |
Value-add [Member] | Intersegment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 2 | 0 |
Value-add [Member] | SmartSide siding [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 399 | 319 | 1,097 | 908 |
Value-add [Member] | SmartSide siding [Member] | Siding [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 393 | 310 | 1,079 | 879 |
Value-add [Member] | SmartSide siding [Member] | OSB [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Value-add [Member] | SmartSide siding [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Value-add [Member] | SmartSide siding [Member] | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 6 | 9 | 18 | 29 |
Value-add [Member] | SmartSide siding [Member] | Intersegment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Value-add [Member] | OSB -Structural Solutions [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 251 | 372 | 1,165 | 1,082 |
Value-add [Member] | OSB -Structural Solutions [Member] | Siding [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Value-add [Member] | OSB -Structural Solutions [Member] | OSB [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 205 | 307 | 995 | 912 |
Value-add [Member] | OSB -Structural Solutions [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Value-add [Member] | OSB -Structural Solutions [Member] | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 47 | 65 | 172 | 171 |
Value-add [Member] | OSB -Structural Solutions [Member] | Intersegment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 2 | 0 |
Commodity | OSB - commodity [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 180 | 290 | 801 | 997 |
Commodity | OSB - commodity [Member] | Siding [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Commodity | OSB - commodity [Member] | OSB [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 180 | 290 | 801 | 997 |
Commodity | OSB - commodity [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Commodity | OSB - commodity [Member] | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Commodity | OSB - commodity [Member] | Intersegment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 0 | 1 | 0 |
Other Product Types | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 22 | 38 | 86 | (2) |
Other Product Types | Other [Member] | Siding [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1 | 3 | 4 | 9 |
Other Product Types | Other [Member] | OSB [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 3 | 4 | 9 | 9 |
Other Product Types | Other [Member] | Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 17 | 30 | 72 | 73 |
Other Product Types | Other [Member] | South America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 0 | 2 | 0 | 3 |
Other Product Types | Other [Member] | Intersegment | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 0 | $ (1) | $ 0 | $ 2 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 129 | $ 332 | $ 898 | $ 1,134 | ||||
Net loss attributed to noncontrolling interest | 0 | 0 | 1 | 1 | ||||
Income from continuing operations attributed to LP | 129 | 332 | 898 | 1,135 | ||||
Income from discontinued operations, net of income taxes | 97 | 33 | 196 | 47 | ||||
Net Income (Loss) Attributable to Parent | $ 226 | $ 384 | $ 484 | $ 365 | $ 498 | $ 320 | $ 1,094 | $ 1,183 |
Basic (in shares) | 74 | 94 | 80 | 100 | ||||
Dilutive effect of employee stock plans | 0 | 0 | 1 | 1 | ||||
Diluted (in shares) | 74 | 94 | 80 | 101 | ||||
Income per share continuing operations - basic (in dollars per share) | $ 1.75 | $ 3.55 | $ 11.23 | $ 11.34 | ||||
Income per share discontinued operations - basic (in dollars per share) | 1.32 | 0.35 | 2.45 | 0.47 | ||||
Net income per share - basic (in dollars per share) | 3.07 | 3.90 | 13.67 | 11.81 | ||||
Income per share continuing operations - diluted (in dollars per share) | 1.74 | 3.52 | 11.16 | 11.26 | ||||
Income per share discontinued operations - diluted (in dollars per share) | 1.31 | 0.35 | 2.43 | 0.47 | ||||
Net income per share - diluted (in dollars per share) | $ 3.05 | $ 3.87 | $ 13.59 | $ 11.73 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Senior unsecured notes, maturing 2029 - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 276 | $ 358 |
Debt Instrument, Interest Rate, Stated Percentage | 3.625% |
Receivables (Details)
Receivables (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Trade receivables | $ 147 | $ 156 |
Income tax receivable | 24 | 13 |
Other receivables | 0 | 1 |
Allowance for doubtful accounts | (1) | (1) |
Total | $ 171 | $ 169 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory [Line Items] | ||
Logs | $ 45 | $ 50 |
Other raw materials | 95 | 57 |
Semi-finished inventory | 25 | 20 |
Finished products | 172 | 150 |
Total | $ 337 | $ 278 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Aug. 01, 2022 | Mar. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | Nov. 03, 2022 | Aug. 31, 2022 | Dec. 31, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from Divestiture of Businesses | $ 265 | $ 0 | ||||||
Long-term assets of discontinued operations | $ 0 | 0 | $ 87 | |||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 157 | $ 0 | ||||||
Discontinued Operations, Disposed of by Sale | EWP Segment Assets | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Equity Method Investment, Ownership Percentage | 50% | 50% | 50% | |||||
Proceeds from Divestiture of Interest in Joint Venture | $ 59 | |||||||
EWP Segment Assets | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 217 | |||||||
Direct transaction costs | 12 | |||||||
Proceeds from Divestiture of Businesses | 202 | 205 | ||||||
Long-term assets of discontinued operations | 87 | |||||||
Gain on sale | $ 118 | |||||||
Amount collected on purchaser's behalf | $ 33 | |||||||
Amount due to purchaser | $ 14 | $ 14 | ||||||
EWP Segment Assets | Discontinued Operations, Disposed of by Sale | Subsequent Event | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 3 | |||||||
EWP Segment Assets | Discontinued Operations, Held-for-sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 217 | |||||||
Disposal Group, Including Discontinued Operation, Support Period | 8 months | |||||||
EWP Segment Assets | Discontinued Operations, Held-for-sale | Subsequent Event | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Disposal Group, Including Discontinued Operation, Consideration | $ 3 | |||||||
Resolute Forest Products Inc. | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Proceeds from Divestiture of Businesses | $ 59 | |||||||
Equity Method Investments | 19 | |||||||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 39 |
Discontinued Operations - Finan
Discontinued Operations - Financial Results of EWP Segment (Details) - Discontinued Operations, Held-for-sale - EWP Segment Assets - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | $ 67 | $ 201 | $ 455 | $ 481 |
Cost of sales | (54) | (156) | (352) | (403) |
Gross profit | 13 | 45 | 103 | 78 |
Selling, general, and administrative expenses | (2) | (5) | (12) | (15) |
Income from operations of discontinued operations | 12 | 40 | 91 | 64 |
Other non-operating items | 0 | 5 | 0 | (1) |
Gain on disposal before income taxes | 118 | 0 | 158 | 0 |
Loss from discontinued operations before taxes | 130 | 44 | 249 | 63 |
Provision for income taxes | (33) | (11) | (53) | (16) |
Income from discontinued operations, net of income taxes | $ 97 | $ 33 | 196 | 47 |
Net cash provided by discontinued operating activities | 18 | 30 | ||
Net cash provided by (used in) discontinued investing activities | $ 258 | $ (25) |
Discontinued Operations - Balan
Discontinued Operations - Balance Sheet Items (Details) - Discontinued Operations, Held-for-sale - EWP Segment Assets $ in Millions | Dec. 31, 2021 USD ($) |
Carrying amounts of assets included as part of discontinued operations: | |
Accounts receivable, net | $ 22 |
Inventories | 46 |
Timber and timberlands | 42 |
Property, plant, and equipment, net | 30 |
Operating lease assets | 1 |
Investments in and advances to affiliates | 14 |
Total assets classified as discontinued operations in the Condensed Consolidated Balance Sheet | 156 |
Carrying amounts of liabilities included as part of discontinued operations: | |
Accounts payable and accrued liabilities | 34 |
Other liabilities | 42 |
Total liabilities classified as discontinued operations in the Condensed Consolidated Balance Sheet | $ 76 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Goodwill and other intangible assets | $ 19 | $ 19 |
Productive Land [Member] | ||
Goodwill [Line Items] | ||
Timber and Timberlands | 28 | 30 |
Amortization of Intangible Assets | (2) | |
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_3
Redeemable Noncontrolling Interest (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Business Combination, Step Acquisition [Abstract] | |
Beginning balance December 31, 2021 | $ 4 |
Net loss attributed to noncontrolling interest | (1) |
Ending balance September 30, 2022 | $ 3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 26% | 25% | 24% | 24% |
Other Tax Expense (Benefit) | $ 9 | $ 7 | ||
Estimated annual tax rate | 25% | 24% |
Commiments and Contingencies _2
Commiments and Contingencies Commiments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Total contingencies | $ 26 | $ 24 |
Accrual for Environmental Loss Contingencies, Gross | 27 | 25 |
Current portion (included in Accounts payable and accrued liabilities) | (1) | (1) |
Long-term portion | 26 | 24 |
Environmental reserves | ||
Loss Contingencies [Line Items] | ||
Total contingencies | 27 | 25 |
Other reserves | ||
Loss Contingencies [Line Items] | ||
Total contingencies | $ 0 | $ 0 |
Product Warranties (Details)
Product Warranties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||||
Beginning Balance | $ 7 | $ 8 | $ 7 | $ 8 |
Accrued to expense | 1 | 0 | 3 | 1 |
Payments made | (1) | 0 | (2) | (1) |
Total warranty reserves | 8 | 8 | 8 | 8 |
Current portion of warranty reserves | (2) | (2) | (2) | (2) |
Long-term portion of warranty reserves | $ 6 | $ 6 | $ 6 | $ 6 |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 1 | $ 0 | $ 3 | $ 1 |
Interest cost | 2 | 2 | 5 | 5 |
Expected return on plan assets | (2) | (3) | (5) | (10) |
Amortization of Prior Service Cost | 0 | 0 | 0 | 0 |
Amortization of net loss | 1 | 1 | 4 | 4 |
Loss due to settlement | 4 | 0 | 4 | 0 |
Net periodic pension cost | 7 | $ 1 | 11 | $ 2 |
Purchase of non-participating group annuity contracts | 33 | |||
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) In Accumulated Other Comprehensive Income (Loss) | 93 | 93 | ||
Defined Benefit Plan, Benefit Obligation | $ 9 | $ 9 |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Changes in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Net actuarial gain (loss) and prior service (cost) arising during the period, net of tax | $ (1) | $ 0 | $ (1) | $ 0 |
Amortization of actuarial loss, prior service cost and settlements, net of tax | 4 | 2 | 7 | 3 |
Total amounts recognized in Other comprehensive income | $ 3 | $ 2 | $ 6 | $ 3 |
Accumulated Comprehensive Los_2
Accumulated Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Beginning Balance | $ (181) | $ (149) | $ (174) | $ (151) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 3 | 2 | 6 | 3 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (13) | (21) | (22) | (21) |
Ending Balance | (190) | (168) | (190) | (168) |
Pension | ||||
Beginning Balance | (74) | (80) | (76) | (81) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 3 | 2 | 6 | 3 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 3 | 2 | 6 | 3 |
Ending Balance | (71) | (78) | (71) | (78) |
Translation Adjustments | ||||
Beginning Balance | (105) | (68) | (96) | (68) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (13) | (21) | (22) | (21) |
Ending Balance | (118) | (89) | (118) | (89) |
Other | ||||
Beginning Balance | (1) | (2) | (1) | (2) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 0 | 0 | 0 |
Ending Balance | (1) | (2) | (1) | (2) |
AOCI Attributable to Parent [Member] | ||||
Beginning Balance | (181) | (149) | (174) | (151) |
Ending Balance | $ (190) | $ (168) | $ (190) | $ (168) |
Other Operating and Non-Opera_3
Other Operating and Non-Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Nonoperating Income (Expense) [Abstract] | ||||
Insurance recoveries | $ 2 | $ 1 | $ 15 | $ 3 |
Reorganization charges | (4) | (1) | (5) | (1) |
Environmental costs | 0 | 0 | (2) | 0 |
Other | 9 | 1 | 9 | 3 |
Other operating credits and charges, net | 7 | 2 | 17 | 5 |
Net periodic pension cost, excluding service cost | (1) | 0 | (4) | 0 |
Pension settlement charges | (4) | 0 | (4) | 0 |
Loss on early debt extinguishment | 0 | 0 | 0 | (11) |
Foreign currency gain (loss) | 2 | (2) | (3) | (2) |
Other | 1 | 0 | 1 | 0 |
Other non-operating items | $ (3) | $ (2) | $ (11) | $ (13) |
Selected Segment Data (Details)
Selected Segment Data (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Sep. 30, 2022 USD ($) operatingSegment | Sep. 30, 2021 USD ($) | |
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 852 | $ 1,018 | $ 3,149 | $ 3,080 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 226 | 365 | 1,093 | 1,182 | ||||
Net loss attributed to noncontrolling interest | 0 | 0 | 1 | 1 | ||||
Net Income (Loss) Attributable to Parent | 226 | $ 384 | $ 484 | 365 | $ 498 | $ 320 | 1,094 | 1,183 |
Provision for income taxes | 44 | 111 | 284 | 350 | ||||
Depreciation and amortization | 32 | 28 | 96 | 85 | ||||
Stock-based compensation expense | (2) | (5) | (15) | (10) | ||||
Other operating income (expense) exclusive of product discontinuance charges | (7) | (2) | (17) | (5) | ||||
Gain (Loss) on Extinguishment of Debt | 0 | 0 | 0 | 11 | ||||
Interest Expense | 3 | 4 | 9 | 12 | ||||
Investment income, net of adjustments | 5 | 0 | ||||||
Other Nonoperating Income Expense, Net of Debt Extinguishment | 1 | (2) | (7) | (2) | ||||
Loss due to settlement | 4 | 0 | 4 | 0 | ||||
Adjusted EBITDA | 200 | 480 | 1,289 | 1,600 | ||||
Income from discontinued operations, net of income taxes | (97) | (33) | (196) | (47) | ||||
Income from continuing operations attributed to LP | 129 | 332 | $ 898 | 1,135 | ||||
Number of Operating Segments | operatingSegment | 3 | |||||||
Intersegment sales | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | (1) | (1) | $ (2) | (2) | ||||
Value-add [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 650 | 691 | 2,262 | 1,991 | ||||
Siding [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 394 | 312 | 1,083 | 889 | ||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,093 | 1,182 | ||||||
Adjusted EBITDA | 90 | 73 | 251 | 240 | ||||
Siding [Member] | Value-add [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 393 | 310 | 1,079 | 879 | ||||
OSB [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 388 | 600 | 1,805 | 1,917 | ||||
Adjusted EBITDA | 113 | 381 | 1,021 | 1,300 | ||||
OSB [Member] | Value-add [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 205 | 307 | 995 | 912 | ||||
EWP [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net loss attributed to noncontrolling interest | 1 | 1 | ||||||
Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 17 | 30 | 72 | 73 | ||||
Adjusted EBITDA | (7) | (3) | (19) | (11) | ||||
Income from continuing operations attributed to LP | 129 | 332 | 898 | 1,135 | ||||
Other [Member] | Value-add [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 0 | 0 | 0 | 0 | ||||
Corporate Segment [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Adjusted EBITDA | (11) | (8) | (29) | (22) | ||||
Intersegment | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 1 | (1) | 2 | 2 | ||||
Intersegment | Value-add [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 0 | 0 | 2 | 0 | ||||
South America | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | 53 | 76 | 190 | 203 | ||||
Adjusted EBITDA | 14 | 37 | 65 | 91 | ||||
South America | Value-add [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net sales | $ 53 | $ 75 | $ 190 | $ 200 |