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Segment Information
 12 Months Ended
Dec. 31, 2019
Segment Reporting Information [Line Items]  
Segment Reporting Disclosure [Text Block]
20.    SEGMENT INFORMATION

We operate in four segments: Siding, OSB, EWP, and South America. Our business units have been aggregated into these four 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 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 earnings from continuing operations before interest expense, income taxes, depreciation and amortization, and exclude stock-based compensation expense, impairment of long-lived assets, other operating credits and charges, net, loss on early debt extinguishment, investment income and other non-operating items. During the fourth quarter of 2019, we changed our measure of segment profit information to Adjusted EBITDA which reflects the information that our chief operating decision maker uses to evaluate performance and allocates resources to the segments. Accordingly, we have provided Adjusted EBITDA of each segment for all prior periods presented.

The Siding segment consists of LP SmartSide® trim and siding, LP CanExel® prefinished siding, as well as LP Outdoor Building Solutions® innovative products for premium outdoor buildings.

The OSB segment manufactures and distributes OSB structural panel products in the U.S. and Canada. Our OSB structural panel products include LP OSB, LP TechShield® radiant barrier, LP TopNotch® sub-flooring, LP Legacy® super tough, moisture-resistant sub-flooring and LP FlameBlock® fire-rated sheathing.

The EWP segment consists of LP SolidStart® I-Joist (IJ), Laminated Veneer Lumber (LVL), Laminated Strand Lumber (LSL), and other related products. This segment also includes the sales of I-Joist and LVL products produced by our joint venture and sales of plywood produced as a by-product of the LVL production process. During 2019, certain timber operations were reclassified from Other to EWP, and we have reclassified a significant portion of our unallocated expenses to the business segments.

Our South America segment manufactures and distributes OSB structural panel and siding products in South America and certain export markets. This segment has manufacturing operations in two countries, Chile and Brazil, and operates sales offices in Chile, Brazil, Peru, Columbia, and Argentina.

Information about our product segments is as follows:
  
Year ended December 31,
Dollar amounts in millions
2019
 
2018
 
2017
NET SALES BY BUSINESS SEGMENT
 
 
 
 
 
Siding
$
963

 
$
942

 
$
884

OSB
777

 
1,305

 
1,303

EWP
396

 
409

 
384

South America
159

 
161

 
155

Other products
20

 
11

 
12

Intersegment Sales
(5
)
 
—

 
(4
)
Total sales
$
2,310

 
$
2,828

 
$
2,734

 
 
 
 
 
 
PROFIT BY SEGMENT
 
 
 
 
 
Net income
$
(10
)
 
$
395

 
$
390

Add (deduct):

 

 

Loss from noncontrolling interest
5

 
—

 
—

Loss from discontinued operations
—

 
4

 
1

Income from continuing operations attributed to LP
(5
)
 
399

 
391

Provision for income taxes
(13
)
 
122

 
119

Depreciation and amortization
122

 
120

 
123

Stock-based compensation
9

 
8

 
10

Impairment of long-lived assets
92

 
11

 
9

Other operating credits and charges, net
1

 
(2
)
 
3

Interest expense, net
9

 
(2
)
 
9

Non-operating items
(6
)
 
4

 
14

Adjusted EBITDA
$
209

 
$
660

 
$
678

Siding
$
177

 
$
202

 
$
192

OSB
10

 
425

 
459

EWP
26

 
26

 
23

South America
34

 
40

 
33

Other
(11
)
 
(8
)
 
(6
)
Corporate
(27
)
 
(25
)
 
(23
)
ADJUSTED EBITDA
$
209

 
$
660

 
$
678

 
 
 
 
 
 
  
Year ended December 31,
 
2019
 
2018
 
2017
DEPRECIATION AND AMORTIZATION
 
 
 
 
 
Siding
$
37

 
$
32

 
$
31

OSB
59

 
58

 
62

EWP
16

 
16

 
18

South America
9

 
9

 
9

Other products
2

 
1

 
1

Non-segment related
—

 
3

 
2

Total depreciation and amortization
$
123

 
$
120

 
$
123

 
 
 
 
 
 
CAPITAL EXPENDITURES
 
 
 
 
 
Siding
$
88

 
$
117

 
$
63

OSB
46

 
55

 
58

EWP
6

 
10

 
6

South America
7

 
28

 
18

Other products
12

 
1

 
1

Non-segment related
4

 
3

 
3

Total capital expenditures
$
163

 
$
214

 
$
149

Information concerning identifiable assets by segment is as follows: 
Dollar amounts in millions
December 31,
2019
 
2018
IDENTIFIABLE ASSETS
 
 
 
Siding
$
537

 
$
487

OSB
558

 
579

EWP
146

 
183

South America
109

 
114

Other products
16

 
3

Non-segment related
469

 
1,148

Total assets
$
1,835

 
$
2,514


Non-segment related assets include cash and cash equivalents, short-term and long-term investments, corporate assets, and other items.
Information concerning our geographic segments is as follows:
  
Year ended December 31,
Dollar amounts in millions
2019
 
2018
 
2017
GEOGRAPHIC LOCATIONS
 
 
 
 
 
Total Sales—Point of origin
 
 
 
 
 
U.S.
$
1,968

 
$
2,409

 
$
2,307

Canada
653

 
861

 
704

South America
178

 
174

 
165

Intercompany sales
(489
)
 
(616
)
 
(442
)
Total Sales
$
2,310

 
$
2,828

 
$
2,734

Operating profit (loss)
 
 
 
 
 
U.S.
$
95

 
$
475

 
$
462

Canada
(17
)
 
138

 
167

South America
25

 
31

 
24

Other operating credits and charges, net and gain (loss) on sales of and impairments of long-lived assets
(93
)
 
(9
)
 
(12
)
General corporate expense, loss on early debt extinguishment, other income (expense) and interest, net
(33
)
 
(114
)
 
(131
)
 
(23
)
 
521

 
510

Provision for income taxes
13

 
(122
)
 
(119
)
Income from continuing operations
$
(10
)
 
$
399

 
$
391

Loss attributed to noncontrolling interest
5

 
—

 
—

Incoming from continuing operations attributed to LP
$
(5
)
 
$
399

 
$
391

 
 
 
 
 
 
IDENTIFIABLE TANGIBLE LONG LIVED ASSETS
 
 
 
 
 
U.S.
$
570

 
$
542

 
$
533

Canada
390

 
408

 
336

South America
74

 
82

 
69

Total assets
$
1,034

 
$
1,032

 
$
938