XML 63 R22.htm IDEA: XBRL DOCUMENT v2.3.0.15
Contingency Reserves
9 Months Ended
Sep. 30, 2011
Commitments and Contingencies Disclosure [Abstract] 
Contingency Reserves
CONTINGENCY RESERVES
LP maintains reserves for various contingent liabilities as follows: 
Dollar amounts in millions
September 30, 2011
 
December 31, 2010
Environmental reserves
$
15.2

 
$
14.3

Hardboard siding reserves
6.4

 
17.8

Other reserves
0.2

 
0.8

Total contingency reserves
21.8

 
32.9

Current portion of contingency reserves
(4.0
)
 
(7.0
)
Long-term portion of contingency reserves
$
17.8

 
$
25.9


Hardboard Siding Reserves
LP has established reserves relating to certain liabilities associated with a settlement agreement resulting from a nationwide class action lawsuit involving hardboard siding manufactured or sold by corporations acquired by LP in 1999 and installed prior to May 15, 2000 which was approved by the applicable courts in 2000. This settlement is discussed in greater detail in the Notes to the financial statements included in LP’s Annual Report on Form 10-K for the year ended December 31, 2010. LP believes that the reserve balance for this settlement at September 30, 2011 will be adequate to cover future payments to claimants and related administrative costs.
The activity in the portion of LP's loss contingency reserves relating to hardboard siding contingencies for the first nine months of 2011 and 2010 are summarized in the following table.
Dollar amounts in millions
September 30, 2011
 
September 30, 2010
Beginning balance, December 31,
$
17.8

 
$
24.2

Reversal of reserves
(10.7
)
 
—

Payments made for claims
(0.4
)
 
(2.4
)
Payments made for administrative costs
(0.3
)
 
(1.2
)
Ending balance
$
6.4

 
$
20.6


During the third quarter of 2011, LP decreased its reserves in connection with this settlement due to reductions in claims activity. LP believes that the reserve balance at September 30, 2011 will be adequate to cover future payments to claimants and related administrative costs.