Revenue (Notes)

12 Months Ended

Dec. 31, 2022

Disaggregation of Revenue [Line Items]

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 depicts 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 18 below, our reportable segments are: Siding, OSB, and South America (dollars in millions).

Year Ended December 31, 2022
By Product type and family:	Siding		OSB		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	1,463	$	—	$	23	$	—	—		$	1,486
OSB - Structural Solutions	—		1,110		215		—		(2)		1,323
	1,463		1,110		238		—		(2)		2,809
Commodity
OSB - Commodity	—		938		—		—		(1)		937
Other
Other products	6		14		3		84		—		107
	$	1,469	$	2,062	$	241	$	84	$	(2)	$	3,854

Year Ended December 31, 2021
By Product type and family:	Siding		OSB		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	1,158	$	—	$	33	$	—	$	—	$	1,191
OSB - Structural Solutions	—		1,152		227		—		—		1,379
	1,158		1,152		260		—		—		2,570
Commodity
OSB - Commodity	—		1,221		—		—		—		1,221
Other
Other products	12		14		5		95		(3)		123
	$	1,170	$	2,387	$	265	$	95	$	(3)	$	3,915

Year Ended December 31, 2020
By Product type and family:	Siding		OSB		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	915	$	—	$	20	$	—	$	—	$	935
OSB - Structural Solutions	—		580		146		—		—		726
	915		580		166		—		—		1,661
Commodity
OSB - Commodity	—		632		—		—		(1)		631
Other
Other products	44		9		3		52		—		107
	$	959	$	1,220	$	169	$	52	$	(1)	$	2,399

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.

During 2022, 2021, and 2020, our top ten customers accounted for approximately 48%, 45%, and 48% of our sales, respectively, in the aggregate. No individual customer exceeded 10% of our sales in 2022, 2021, or 2020.

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 estimation 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). As of December 31, 2022, and 2021, we accrued $46 million and $31 million, respectively, as customer rebates recorded in accounts payable and accrued liabilities on our Consolidated Balance Sheets.

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. The amount of consignment inventory as of December 31, 2022, and 2021, was $20 million and $10 million, respectively.