Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

We operate in three segments: Siding, OSB, and LPSA. 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.

•The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia, including LP® SmartSide® Trim & Siding, LP® SmartSide® ExpertFinish® Trim & Siding, LP BuilderSeries® Lap Siding, and LP® Outdoor Building Solutions® (collectively referred to as Siding Solutions).

•The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP® Structural Solutions (which includes LP® TechShield® Radiant Barrier, LP WeatherLogic® Air & Water Barrier, LP Legacy® Premium Sub-Flooring, LP NovaCore® Thermal Insulated Sheathing, LP® FlameBlock® Fire-Rated Sheathing, and LP® TopNotch® 350 Durable Sub-Flooring).

•The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction. The LPSA segment carries out manufacturing operations in Chile and Brazil and operates sales offices in Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru.

The accounting policies of the segments are the same as those described in the Company’s summary of significant accounting policies. We evaluate the performance of our business segments based on net sales and segment Adjusted EBITDA. Accordingly, our chief operating decision maker, the chief executive officer, evaluates performance and allocates resources based primarily on net sales and segment Adjusted EBITDA for our business segments.

Segment Adjusted EBITDA 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.

The chief operating decision maker uses both net sales and segment Adjusted EBITDA for each segment predominantly in the annual budget and forecasting process. The chief operating decision maker considers budget-to-actual variances on a quarterly basis for both measures when making decisions about the allocation of operating and capital resources to each segment. The chief operating decision maker also uses segment Adjusted EBITDA to assess the relative performance of each segment and to determine the compensation of certain employees.

Information about our product segments is as follows (dollars in millions):

	Year Ended December 31, 2024
	Siding		OSB		LPSA		Segment Total		Other		Consolidated
Net sales	$	1,558	$	1,184	$	190	$	2,932	$	9	$	2,941
Cost of sales	(1,092)		(872)		(134)		(2,098)		(12)		(2,110)
Selling, general, and administrative expenses	(155)		(62)		(20)		(238)		(54)		(291)
Adjustments to Adjusted EBITDA:
Depreciation and Amortization	74		45		6		126		—		126
Other charges1	5		3		—		8		14		22
Adjusted EBITDA	$	390	$	298	$	42	$	730	$	(42)	$	688

1Other charges includes stock compensation, income (loss) non-controlling interest and income from equity in unconsolidated affiliates.

	Year Ended December 31, 2023
	Siding		OSB		LPSA		Segment Total		Other		Consolidated
Net sales	$	1,328	$	1,026	$	205	$	2,559	$	22	$	2,581
Cost of sales	(1,005)		(789)		(151)		(1,945)		(42)		(1,988)
Selling, general, and administrative expenses	(125)		(61)		(20)		(206)		(52)		(257)
Adjustments to Adjusted EBITDA:
Depreciation and Amortization	67		43		7		118		1		119
Other charges1	3		2		—		5		18		23
Adjusted EBITDA	$	269	$	220	$	42	$	531	$	(53)	$	478

1Other charges includes stock compensation, income (loss) non-controlling interest and income from equity in unconsolidated affiliates.

	Year Ended December 31, 2022
	Siding		OSB		LPSA		Segment Total		Other		Consolidated
Net sales	$	1,469	$	2,062	$	241	$	3,772	$	81	$	3,854
Cost of sales	(1,061)		(1,035)		(153)		(2,249)		(106)		(2,355)
Selling, general, and administrative expenses	(120)		(65)		(20)		(205)		(59)		(264)
Adjustments to Adjusted EBITDA:
Depreciation and Amortization	46		71		8		125		4		129
Other charges1	4		2		1		7		19		25
Adjusted EBITDA	$	339	$	1,034	$	77	$	1,450	$	(61)	$	1,389

1Other charges includes stock compensation, income (loss) non-controlling interest and income from equity in unconsolidated affiliates.

	Year Ended December 31,
	2024		2023		2022
NET INCOME TO ADJUSTED EBITDA RECONCILIATION
Net income	$	420	$	178	$	1,083
Add (deduct):
Net loss attributed to non-controlling interest	—		—		3
Income from discontinued operations, net of income taxes	—		—		(198)
Income attributed to LP from continuing operations	420		178		888
Provision for income taxes	140		74		274
Depreciation and amortization	126		119		129
Stock-based compensation expense	20		13		19
Loss on impairment attributed to LP	5		6		1
Other operating credits and charges, net	8		18		(16)
Business exit credits and charges	(14)		32		—
Pension settlement charges	—		4		82
Interest expense	14		14		11
Investment income	(22)		(18)		(14)
Other non-operating items	(9)		39		15
Adjusted EBITDA	$	688	$	478	$	1,389

	Year Ended December 31,
	2024		2023		2022
Capital Expenditures
Siding	$	108	$	212	$	316
OSB	63		59		53
LPSA	9		19		20
Other	3		10		22
Total capital expenditures	$	183	$	300	$	412

Information concerning identifiable assets by segment is as follows (dollars in millions):

	December 31,
	2024		2023
Identifiable Assets
Siding	$	1,319	$	1,291
OSB	554		526
LPSA	145		165
Other	551		455
Total assets	$	2,569	$	2,437

Other segment related assets include cash and cash equivalents, short-term and long-term investments, corporate assets, and other items.

Information concerning our geographic segments is as follows (dollars in millions):

	Year Ended December 31,
	2024		2023		2022
GEOGRAPHIC LOCATIONS
Total Sales—Point of origin
U.S.	$	2,611	$	2,265	$	3,329
Canada	675		610		827
LPSA	214		241		273
Inter-segment sales	(559)		(535)		(575)
Total Sales	$	2,941	$	2,581	$	3,854
Operating profit (loss)
U.S.	$	502	$	304	$	1,084
Canada	48		40		129
LPSA	36		35		70
Other operating credits and charges, net and loss on impairments of assets	(10)		(49)		15
General corporate expense, loss on early debt extinguishment, other income (expense), interest, net and equity in unconsolidated affiliates	(16)		(78)		(139)
Income before income taxes, including equity in unconsolidated affiliates	560		252		1,159
Provision for income taxes	(140)		(74)		(274)
Income from continuing operations	$	420	$	178	$	885
Loss attributed to noncontrolling interest	—		—		3
Income attributed to LP from continuing operations	$	420	$	178	$	888
IDENTIFIABLE TANGIBLE LONG LIVED ASSETS
U.S.	$	1,063	$	996	$	939
Canada	468		472		356
South America	93		104		87
Total identifiable tangible long lived assets	$	1,624	$	1,572	$	1,382