Revenue (Notes)

12 Months Ended

Dec. 31, 2020

Disaggregation of Revenue [Line Items]

Revenue from Contract with Customer [Text Block]

3.    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 depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. During 2020, LP CanExel® prefinished siding was reclassified from Siding to our Other segment, reflecting changes in organizational structure and, accordingly, the information that the chief operating decision maker uses to evaluate performance and allocate resources to our business segments. All prior periods have been adjusted for comparability.

As noted in the segment reporting information in Note 20 below, our reportable segments are: Siding, OSB, EWP, and South America.

Year Ended December 31, 2020
By Product type and family:	Siding		OSB		EWP		South America		Other		Inter-segment		Total
Value-add
SmartSide	$	915	$	—	$	—	$	20	$	—	$	—	$	935
Fiber siding	36		—		—		—		—		—		36
OSB - Structural Solutions	—		580		—		146		—		—		726
I-joist	—		—		148		—		—		—		148
LVL	—		—		141		—		—		—		141
LSL	—		—		45		—		—		—		45
	951		580		334		166		—		—		2,031
Commodity
OSB - commodity	—		632		—		—		—		(1)		631
Plywood	—		—		25		—		—		—		25
	—		632		25		—		—		(1)		656
Other
CanExel® siding	—		—		—		—		14		—		14
Other products	8		9		30		3		38		—		88
	$	959	$	1,220	$	389	$	169	$	52	$	(1)	$	2,788

Year Ended December 31, 2019
By Product type and family:	Siding		OSB		EWP		South America		Other		Inter-segment		Total
Value-add
SmartSide	$	797	$	—	$	—	$	19	$	—	$	—	$	816
Fiber siding	101		—		—		—		—		—		101
OSB - Structural Solutions	1		381		8		138		—		—		528
I-joist	—		—		137		—		—		—		137
LVL	—		—		142		—		—		—		141
LSL	—		—		50		—		—		—		50
	899		381		337		156		—		—		1,773
Commodity
OSB - commodity	9		387		3		—		—		(5)		394
Plywood	—		—		25		—		—		—		25
	9		387		28		—		—		(5)		419
Other
CanExel® siding	—		—		—		—		46		—		46
Other products	9		9		31		3		20		—		72
	$	917	$	777	$	396	$	159	$	66	$	(5)	$	2,310

Year Ended December 31, 2018
By Product type and family:	Siding		OSB		EWP		South America		Other		Inter-segment		Total
Value-add
SmartSide	$	725	$	—	$	—	$	22	$	—	$	—	$	746
Fiber siding	106		—		—		—		—		—		106
OSB - Structural Solutions	23		551		14		135		—		—		723
I-joist	—		—		122		—		—		—		122
LVL	—		—		141		—		—		—		141
LSL	—		—		59		—		—		—		59
	854		551		336		157		—		—		1,898
Commodity
OSB - commodity	39		746		10		—		—		—		795
Plywood	—		—		29		—		—		—		29
	39		746		39		—		—		—		824
Other
CanExel® siding	—		—		—		—		37		—		37
Other products	12		8		34		4		11		—		69
	$	905	$	1,305	$	409	$	161	$	48	$	—	2,828

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.

During 2020, 2019 and 2018, our top ten customers accounted for approximately 46%, 42% and 44% of our sales, respectively, in the aggregate. No individual customer exceeded 10% of our sales in 2020, 2019, or 2018.

Our businesses routinely incur customer program costs to obtain favorable product placement, to promote sales of products and to maintain competitive pricing. Customer program costs and incentives, including rebates and promotion and volume allowances, are accounted for as deductions from net sales at the time the program is

initiated. These reductions from revenue are recorded at the time of sale or the implementation of the program based on management’s best estimates. Estimates are based on historical and projected experience for each type of program or customer. Volume allowances are accrued based on management’s estimation 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). As of December 31, 2020, and 2019, we accrued $44 million and $34 million, respectively, as customer rebates recorded in Accounts payable and accrued liabilities on our Consolidated Balance Sheets.

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. The amount of consignment inventory as of December 31, 2020, and 2019, was $7 million and $12 million, respectively.