Selected Segment Data

3 Months Ended

Mar. 31, 2020

SELECTED SEGMENT DATA

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. During the three months ended March 31, 2020, our LP CanExel® prefinished siding was reclassified from Siding to Other, reflecting changes in organizational structure and, accordingly, the information that the chief operating decision maker uses to evaluate performances and allocate resources to the segments. All prior periods presented have been adjusted for comparability.

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 before interest expense, net, provision for income taxes, depreciation and amortization, and excludes stock-based compensation expense, impairment of long-lived assets, other operating credits and charges, net, and other non-operating items.

Information about our product segments is as follows:



	Three Months Ended
	March 31,
	2020			2019
Net sales
Siding	$	212		$	219
OSB	220			208
EWP	99			90
South America	36			45
Other	18			21
Intersegment sales	—			(1		)
Total sales	$	585		$	582
PROFIT BY SEGMENT
Net income	$	33		$	26
Add (deduct):
Net loss attributed to noncontrolling interest	—			1
Income attributed to LP	33			27
Provision for income taxes	9			7
Depreciation and amortization	28			31
Stock-based compensation expense	2			2
Impairment of long-lived assets	7			1
Other operating credits and charges, net	2			2
Interest expense, net	7			(1		)
Other non-operating items	(5		)	(11		)
Adjusted EBITDA	$	83		$	58
Siding	42			39
OSB	35			8
EWP	9			7
South America	7			10
Other	(3		)	1
Corporate	(7		)	(7		)
Adjusted EBITDA	83			58