Selected Segment Data

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Selected Segment Data

SELECTED SEGMENT DATAWe operate in three segments: Siding, OSB, and South America. Our business units have been aggregated into these three 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. In June 2022, LP reached an agreement for the sale of its EWP segment assets. As a result of this transaction, EWP has been reclassified to discontinued operations and is no longer a reportable segment of the Company. See "Note 7 –Discontinued Operations" for additional information.

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 from continuing operations 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 business segments is as follows (dollar amounts in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Net sales
Siding	$	358	$	291	$	689	$	576
OSB	673		778		1,417		1,317
South America	70		74		137		126
Other	30		26		55		43
Intersegment sales	(1)		—		(2)		(1)
Total sales	$	1,130	$	1,168	$	2,297	2,062
PROFIT BY SEGMENT
Net income	$	385	$	497	$	868	$	817
Add (deduct):
Net loss attributed to noncontrolling interest	—		—		1		1
Income from discontinued operations, net of income taxes	(37)		(11)		(99)		(14)
Income attributed to LP from continuing operations	348		486		770		803
Provision for income taxes	116		144		240		239
Depreciation and amortization	32		29		64		57
Stock-based compensation expense	6		3		13		5
Other operating credits and charges, net	(11)		(3)		(10)		(3)
Loss on early debt extinguishment	—		—		—		11
Interest expense	3		4		6		9
Investment income	(2)		—		(3)		(1)
Other non-operating items	(2)		3		8		—
Adjusted EBITDA	$	491	$	665	$	1,089	$	1,119
Siding	$	78	$	77	$	160	$	168
OSB	403		565		908		919
South America	26		34		51		54
Other	(7)		(4)		(13)		(8)
Corporate	(9)		(7)		(17)		(14)
Adjusted EBITDA	$	491	$	665	$	1,089	$	1,119