Selected Segment Data

3 Months Ended

Mar. 31, 2022

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, pension settlement charges, and other non-operating items.

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

	Three Months Ended March 31,
	2022		2021
Net sales
Siding	$	332	$	285
OSB	744		539
EWP	170		123
South America	67		53
Other	26		18
Intersegment sales	(1)		—
Total sales	$	1,337	$	1,017
PROFIT BY SEGMENT
Net income	$	483	$	320
Add (deduct):
Net loss attributed to noncontrolling interest	1		1
Income attributed to LP	484		320
Provision for income taxes	139		96
Depreciation and amortization	32		29
Stock-based compensation expense	7		1
Other operating credits and charges, net	(38)		—
Loss on early debt extinguishment	—		11
Interest expense	3		5
Investment income	(1)		—
Other non-operating items	10		(1)
Adjusted EBITDA	$	636	$	461
Siding	$	83	$	90
OSB	505		354
EWP	38		7
South America	25		21
Other	(6)		(5)
Corporate	(9)		(6)
Adjusted EBITDA	$	636	$	461