Revenue (Notes)

9 Months Ended

Sep. 30, 2023

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 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 17 - Selected Segment Data” below, our reportable segments are Siding, Oriented Strand Board (OSB), and South America. The following tables set forth our revenue by segment (dollar amounts in millions).

Three Months Ended September 30, 2023
By Product type and family:	Siding		OSB		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	342	$	—	$	5	$	—	$	—	$	347
OSB - Structural Solutions	—		174		40		—		—		213
	342		174		44		—		—		560
Commodity
OSB - commodity	—		157		—		—		—		157
Other
Other products	2		5		—		4		—		11
	$	345	$	335	$	45	$	4	$	—	$	728

Three Months Ended September 30, 2022
By Product type and family:	Siding		OSB		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	393	$	—	$	6	$	—	$	—	$	399
OSB - Structural Solutions	—		205		47		—		—		251
	393		205		53		—		—		650
Commodity
OSB - commodity	—		180		—		—		—		180
Other
Other products	1		3		—		17		—		22
	$	394	$	388	$	53	$	17	$	(1)	$	852

Nine Months Ended September 30, 2023
By Product type and family:	Siding		OSB		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	989	$	—	$	19	$	—	$	—	$	1,008
OSB - Structural Solutions	—		412		132		—		—		544
	989		412		151		—		—		1,552
Commodity
OSB - commodity	—		332		—		—		—		332
Other
Other products	7		9		2		21		—		39
	$	996	$	754	$	153	$	21	$	—	$	1,923

Nine Months Ended September 30, 2022
By Product type and family:	Siding		OSB		South America		Other		Inter-segment		Total
Value-add
Siding Solutions	$	1,079	$	—	$	18	$	—	$	—	$	1,097
OSB - Structural Solutions	—		995		172		—		(2)		1,165
	1,079		995		190		—		(2)		2,262
Commodity
OSB - commodity	—		801		—		—		(1)		801
Other
Other products	4		9		—		72		—		86
	$	1,083	$	1,805	$	190	$	72	$	(2)	$	3,149

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 to the customer 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 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 sales 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.