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Revenue (Notes)
 6 Months Ended
Jun. 30, 2022
Disaggregation of Revenue [Abstract]  
Revenue from Contract with Customer [Text Block] 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 achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
As noted in the segment reporting information in Note 17 below, our reportable segments are Siding, Oriented Strand Board (OSB), and South America (dollar amounts in millions).
Three Months Ended June 30, 2022
By product type and family:SidingOSBSouth AmericaOtherInter-segmentTotal
Value-add
Siding Solutions$356 $— $6 $— $— $362 
OSB - Structural Solutions— 384 64 — (1)448 
356 384 70 — (1)810 
Commodity
OSB - commodity— 287 — — — 287 
Other
Other products1 2 — 30 — 33 
$358 $673 $70 $30 $(1)$1,130 
Three Months Ended June 30, 2021
By product type and family:SidingOSBSouth AmericaOtherInter-segmentTotal
Value-add
Siding Solutions$288 $— $10 $— $— $298 
OSB - Structural Solutions— 350 63 — — 414 
288 350 74 — — 712 
Commodity
OSB - commodity— 425 — — — 425 
Other
Other products3 2 — 26 — 31 
$291 $778 $74 $26 $— $1,168 
Six Months Ended June 30, 2022
By product type and family:SidingOSBSouth AmericaOtherInter-segmentTotal
Value-add
Siding Solutions$686 $— $12 $— $— $698 
OSB - Structural Solutions— 791 123 — (2)913 
686 791 135 — (2)1,611 
Commodity
OSB - commodity— 621 — — — 621 
Other
Other products3 5 2 55 — 66 
$689 $1,417 $137 $55 $(2)$2,297 
Six Months Ended June 30, 2021
By product type and family:SidingOSBSouth AmericaOtherInter-segmentTotal
Value-add
Siding Solutions$570 $— $20 $— $— $589 
OSB - Structural Solutions— 605 104 — — 709 
570 605 124 — — 1,298 
Commodity
OSB - commodity— 707 — — — 707 
Other
Other products6 5 3 43 (1)57 
$576 $1,317 $126 $43 $(1)$2,062 
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.
Our businesses routinely incur customer program costs to obtain favorable product placement, promote sales of products, and 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 estimates 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).
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.