Selected Segment Data

3 Months Ended

Mar. 31, 2023

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.

We evaluate the performance of our business segments based on Net sales and segment Adjusted EBITDA. Accordingly, our chief operating decision maker evaluates performance and allocates resources based primarily on Net sales and segment Adjusted EBITDA for our business segments. Segment Adjusted EBITDA 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 business segments is as follows (dollar amounts in millions):

	Three Months Ended March 31,
	2023		2022
Net sales
Siding	$	331	$	332
OSB	189		744
South America	55		67
Other	8		26
Intersegment sales	—		(1)
Total sales	$	584	$	1,167
NET INCOME TO ADJUSTED EBITDA RECONCILIATION
Net income	$	22	$	483
Add (deduct):
Net loss (income) attributed to noncontrolling interest	(1)		1
Income from discontinued operations, net of income taxes	—		(62)
Income attributed to LP from continuing operations	21		422
Provision for income taxes	1		124
Depreciation and amortization	28		32
Stock-based compensation expense	4		6
Other operating credits and charges, net	5		1
Interest expense	3		3
Investment income	(5)		(1)
Pension settlement charges	6		—
Other non-operating items	3		10
Adjusted EBITDA	$	66	$	598
SEGMENT ADJUSTED EBITDA
Siding	$	67	$	83
OSB	5		505
South America	12		25
Other	(9)		(6)
Corporate	(9)		(9)
Total Adjusted EBITDA	$	66	$	598