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Other Operating Credits and Charges, Net
 12 Months Ended
Dec. 31, 2012
Other Operating Credits And Charges, Net [Abstract]  
Other Operating Credits And Charges Net [Text Block}
OTHER OPERATING CREDITS AND CHARGES, NET
The major components of “Other operating credits and charges, net” in the Consolidated Statements of Income for the years ended December 31 are reflected in the table below and described in the paragraphs following the table: 
Dollar amounts in millions
Year ended December 31,
2012
 
2011
 
2010
Adjustment related to prior year inventory
$
(1.5
)
 
$
—

 
$
—

Severance
(0.5
)
 
(1.1
)
 
—

Adjustments to retirement accounts
(3.8
)
 
—

 
—

Additions to litigation reserves
—

 
—

 
(2.2
)
Reductions, net of additions, to product related contingency reserves
5.0

 
11.5

 
2.5

Reductions, net of additions, to product related warranty reserves
1.8

 
0.4

 
—

Additions to environmental related contingency reserves
—

 
(0.9
)
 
—

Timber related reserves
0.8

 
1.5

 
—

Other
1.1

 
(0.2
)
 
(0.4
)
 
$
2.9

 
$
11.2

 
$
(0.1
)

2012
During 2012, LP recorded a $2.9 million gain in "Other operating credits and charges, net". The components of the net charges include:
•
a loss of $1.5 million related to a prior year inventory adjustment;
•
a loss of $0.5 million associated with severance related to an indefinitely curtailed OSB mill in British Columbia, Canada and other positions primarily related to the mill;
•
a loss of $3.8 million consisting of $2.2 million related to SERP settlement associated with the retirement of LP's previous CEO and $1.6 million related to termination indemnities in South America;
•
a gain of $5.0 million related to a reduction in product related contingency reserves associated with the national hardboard class action settlement (see Note 18 for further discussion);
•
a gain of $1.8 million consisting of a loss of $1.0 million for additions to warranty reserves associated with Canexel products sold in Europe in prior years, a loss of $0.8 million for additions to warranty reserves associated with a discontinued line of OSB siding and a gain of $3.6 million related to a reduction in hardboard siding trim warranty reserve; and
•
a gain of $0.8 million related to reductions in reforestation liabilities associated with LP's Canadian timber obligations.

2011
During 2011, LP recorded a $11.2 million gain in “Other operating credits and charges, net”. The components of the net credits include:
•
a loss of $1.1 million associated with severance related to an indefinitely curtailed OSB mill in British Columbia, Canada and other positions;
•
a gain of 11.5 million related to a reduction in product related contingency reserves associated with the national hardboard class action settlement (see Note 18 for further discussion);
•
a gain of $1.5 million related to reductions in reforestation liabilities associated with LP's Canadian timber obligations;
•
a loss of 0.9 million related to an increase in environmental reserves associated with a site that is held for sale; and
•
a gain of $0.4 million related to reductions in our warranty reserves.
2010
During 2010, LP recorded a $0.1 million loss in “Other operating credits and charges, net”. The components of the net charges include:
•
a loss of $1.0 million associated with an assessment in connection with one of its indefinitely curtailed OSB mills;
•
a loss of $2.2 million associated with LP’s settlement of an anti-trust litigation matter;
•
a gain of $2.5 million related to a reduction in product related contingency reserves associated with the national hardboard class action settlement (see Note 18 for further discussion); and
•
a gain of $0.5 million associated with the reduction of certain liabilities associated with the acquisition of Le Groupe Forex.
Severance
Over the course of the last three years, LP has entered into several restructuring plans in an effort to sell selected businesses and reduce overall expenses. The detail of the severance accrual and related expense and payments for the last three years is as follows:
 
Dollar amounts in millions
Year ended December 31,
2012
 
2011
 
2010
Beginning balance
$
1.5

 
$
0.6

 
$
2.1

Charged to expense, continuing operations
1.0

 
1.9

 
0.5

Payments
(1.8
)
 
(1.0
)
 
(2.0
)
Ending balance
$
0.7

 
$
1.5

 
$
0.6


The balance of the accrued severance is included in “Accounts payable and accrued liabilities” on the Consolidated Balance Sheets. The balance as of December 31, 2012 is payable under contract through 2013. For the year ended December 31, 2012, severance expense is primarily related to OSB segment or general and corporate expenses.