Selected Segment Data

9 Months Ended

Sep. 30, 2022

Segment Reporting [Abstract]

Selected Segment Data

SELECTED SEGMENT DATA

We 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. On June 21, 2022, LP reached an agreement for the sale of its EWP segment assets which subsequently closed on August 1, 2022. As a result of this transaction, the results of the EWP segment have been reclassified to discontinued operations and EWP 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 September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Net sales
Siding	$	394	$	312	$	1,083	$	889
OSB	388		600		1,805		1,917
South America	53		76		190		203
Other	17		30		72		73
Intersegment sales	(1)		(1)		(2)		(2)
Total sales	$	852	$	1,018	$	3,149	3,080
PROFIT BY SEGMENT
Net income	$	226	$	365	$	1,093	$	1,182
Add (deduct):
Net loss attributed to noncontrolling interest	—		—		1		1
Income from discontinued operations, net of income taxes	(97)		(33)		(196)		(47)
Income attributed to LP from continuing operations	129		332		898		1,135
Provision for income taxes	44		111		284		350
Depreciation and amortization	32		28		96		85
Stock-based compensation expense	2		5		15		10
Other operating credits and charges, net	(7)		(2)		(17)		(5)
Loss on early debt extinguishment	—		—		—		11
Interest expense	3		4		9		12
Investment income	(5)		—		(8)		(1)
Other non-operating items	(1)		2		7		2
Pension settlement charges	4		—		4		—
Adjusted EBITDA	$	200	$	480	$	1,289	$	1,600
Siding	$	90	$	73	$	251	$	240
OSB	113		381		1,021		1,300
South America	14		37		65		91
Other	(7)		(3)		(19)		(11)
Corporate	(11)		(8)		(29)		(22)
Adjusted EBITDA	$	200	$	480	$	1,289	$	1,600