Selected Segment Data

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Selected Segment Data

SELECTED SEGMENT DATA

We operate in four segments: Siding, OSB, EWP, and South America. Our business units have been aggregated into these four 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.

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 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, and other non-operating items.

Information about our product segments is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Net sales
Siding	$	291	$	220	$	576	$	432
OSB	778		204		1,317		424
EWP	158		79		280		178
South America	74		38		126		74
Other	26		7		43		25
Intersegment sales	—		—		(1)		—
Total sales	$	1,325	$	548	$	2,342	1,133
PROFIT BY SEGMENT
Net income	$	497	$	31	$	817	$	64
Add (deduct):
Net loss attributed to noncontrolling interest	—		2		1		2
Income attributed to LP	498		33		818		66
Provision for income taxes	147		19		244		28
Depreciation and amortization	29		28		58		56
Stock-based compensation expense	4		1		5		3
Loss on impairment attributed to LP	—		7		—		14
Other operating credits and charges, net	(3)		(4)		(3)		(2)
Product-line discontinuance charges	—		10		—		10
Loss on early debt extinguishment	—		—		11		—
Interest expense	4		6		9		12
Investment income	—		(4)		(1)		(3)
Other non-operating items	6		1		5		(4)
Adjusted EBITDA	$	684	$	97	$	1,145	$	180
Siding	$	77	$	51	$	168	$	93
OSB	565		46		919		81
EWP	18		3		26		12
South America	34		11		54		18
Other	(4)		(5)		(8)		(8)
Corporate	(7)		(9)		(14)		(16)
Adjusted EBITDA	$	684	$	97	$	1,145	$	180