Revenue (Notes)

9 Months Ended

Sep. 30, 2020

Revenue from Contract with Customers [Abstract]

Revenue from Contract with Customer [Text Block]

NOTE 2. 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 achieves the disclosure objective to depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. During the nine months ended September 30, 2020, 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 performance and allocate resources to our business segments. All prior periods presented have been adjusted for comparability.

As noted in the segment reporting information in Note 18 below, our reportable segments are Siding, Oriented Strand Board (OSB), Engineered Wood Products (EWP), and South America.

Three Months Ended September 30, 2020
By product type and family:	Siding		OSB		EWP		South America		Other		Inter-segment		Total
Value-add
SmartSide®	$	260	$	—	$	—	$	4	$	—	$	—	$	264
Fiber siding	6		—		—		—		—		—		6
CanExel® siding	—		—		—		—		—		—		—
OSB - Structural Solutions	—		162		—		40		—		—		202
LVL	—		—		35		—		—		—		35
LSL	—		—		14		—		—		—		14
I-Joist	—		—		37		—		—		—		37
	266		162		86		44		—		—		558
Commodity
OSB - commodity	—		198		—		—		—		—		198
Plywood	—		—		7		—		—		—		7
	—		198		7		—		—		—		205
Other
Other products	2		8		10		1		11		—		32
	$	268	$	368	$	103	$	45	$	11	$	—	$	795

Nine Months Ended September 30, 2020
By product type and family:	Siding		OSB		EWP		South America		Other		Inter-segment		Total
Value-add
SmartSide®	$	658	$	—	$	—	$	12	$	—	$	—	$	670
Fiber siding	36		—		—		—		—		—		36
CanExel® siding	—		—		—		—		14		—		14
OSB - Structural Solutions	—		360		2		104		—		—		466
LVL	—		—		101		—		—		—		101
LSL	—		—		35		—		—		—		35
I-Joist	—		—		106		—		—		—		106
	694		360		244		116		14		—		1,428
Commodity
OSB - commodity	—		419		—		—		—		—		419
Plywood	—		—		16		—		—		—		16
	—		419		16		—		—		—		435
Other
Other products	6		13		21		3		22		—		65
	$	700	$	792	$	281	$	119	$	36	$	—	$	1,928

Three Months Ended September 30, 2019
By product type and family:	Siding		OSB		EWP		South America		Other		Inter-segment			Total
Value-add
SmartSide®	$	213	$	—	$	—	$	4	$	—	$	—		$	217
Fiber siding	28		—		—		—		—		—			28
CanExel® siding	—		—		—		—		15		—			15
OSB - Structural Solutions	—		96		2		32		—		—			130
LVL	—		—		37		—		—		—			37
LSL	—		—		12		—		—		—			12
I-Joist	—		—		39		—		—		—			39
	241		96		91		36		15		—			478
Commodity
OSB - commodity	1		100		—		—		—		(1		)	100
Plywood	—		—		7		—		—		—			7
	1		100		7		—		—		(1		)	107
Other
Other products	2		2		8		1		6		—			19
	$	244	$	197	$	105	$	36	$	21	$	(1	)	$	603

Nine Months Ended September 30, 2019
By product type and family:	Siding		OSB		EWP		South America		Other		Inter-segment			Total
Value-add
SmartSide®	$	600	$	—	$	—	$	14	$	—	$	—		$	614
Fiber siding	79		—		—		—		—		—			79
CanExel® siding	—		—		—		—		38		—			38
OSB - Structural Solutions	—		295		7		105		—		—			406
LVL	—		—		108		—		—		—			108
LSL	—		—		40		—		—		—			40
I-Joist	—		—		103		—		—		—			103
	679		295		257		119		38		—			1,387
Commodity
OSB - commodity	9		304		3		—		—		(4		)	312
Plywood	—		—		19		—		—		—			19
	9		304		22		—		—		(4		)	331
Other
Other products	7		6		23		2		16		—			55
	$	695	$	605	$	303	$	121	$	53	$	(4	)	$	1,773

Revenue is recognized when obligations under the terms of a contract (purchase orders) with our customers are satisfied; generally, this occurs with the transfer of control of our products. 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. We recognize revenue as of a point in time.

Our businesses routinely incur customer program costs to obtain favorable product placement, to promote sales of products and to 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 of 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 estimates 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).

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.