6-K

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2019

Commission file number: 001-37694

NORBORD INC.

(Exact name of registrant as specified in its charter)

1 Toronto Street, Suite 600

Toronto, Ontario, Canada, M5C 2W4

(416) 365-0705

(Address and Telephone Number of Registrant’s Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☐            Form 40-F  ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

The information contained in Exhibits 99.2 and 99.3 of this Form 6-K is incorporated by reference into the registrant’s following registration statements on Form F-10: File No. 333-230459, Form F-3: File No. 333-220258 and Form S-8: File Nos. 333-213179 and 333-211895.

EXHIBIT INDEX

The following documents, which are attached as exhibits hereto, are incorporated by reference herein:

Exhibit	Description
99.1	Press Release, dated August 1, 2019
99.2	Unaudited Condensed Interim Consolidated Financial Statements
99.3	Management’s Discussion and Analysis
99.4	Form 52 - 109F2 - Certification of Interim Filings – CEO
99.5	Form 52 - 109F2 - Certification of Interim Filings – CFO
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: August 1, 2019	NORBORD INC.
	By:	/s/ Tracy Connelly McGilley
		Name: Tracy Connelly McGilley
		Title: Corporate Secretary

EX-99.1

Exhibit 99.1

News Release

NORBORD REPORTS SECOND QUARTER 2019 RESULTS; DECLARES QUARTERLY DIVIDEND

Note: Financial references in US dollars unless otherwise indicated.

Q2 2019 HIGHLIGHTS

• Adjusted EBITDA of $36 million

• Loss of $0.17 per diluted share; Adjusted loss of $0.10 per diluted share

• European shipments up 7% year-over-year

• Termed out 2020 senior secured notes to 2027 at 5.75% coupon, upsized principal by $110 million to bolster liquidity

• Declared quarterly variable dividend of C $0.40 per share for shareholders of record on August 30, 2019

TORONTO, ON (August 1, 2019) - Norbord Inc. (TSX and NYSE: OSB) today reported Adjusted EBITDA of $36 million in the second quarter of 2019 compared to $42 million in the first quarter of 2019 and $273 million in the second quarter of 2018. The decrease versus both comparative periods was primarily due to lower North American oriented strand board (OSB) prices. North American operations generated Adjusted EBITDA of $18 million compared to $23 million in the prior quarter and $256 million in the same quarter last year. European operations delivered Adjusted EBITDA of $21 million, unchanged versus both the prior quarter and same quarter last year.

“US homebuilding demand continued to be held back by affordability concerns and persistent record-breaking wet weather,” said Peter Wijnbergen, Norbord’s President and CEO. “For the third quarter in a row, we took extensive downtime across our North American mills which negatively impacted our production volumes and manufacturing costs. We also made the difficult decision to indefinitely curtail our 100 Mile House, BC mill starting in August as the mill is no longer viable due to a lack of wood supply at economic prices.”

“We are starting to see signs of improvement in the US housing market. Mortgage rates are back down below 4%. Homebuilders have rebalanced new home inventories and are reporting higher levels of buyer interest and net order growth for the first time since the fall. Housing economists’ forecast for unchanged 2019 starts implies 4% growth in the second half of the year which would support higher levels of OSB demand than the first half.”

“In Europe, our panel business had another good quarter, delivering year-over-year shipments growth and a strong 16% EBITDA margin. In Germany, the global trade war is starting to negatively impact macro export activity, putting downward pressure on OSB prices from the well above average levels we have enjoyed for the past year and a half. However, we expect this to accelerate the pace of OSB substitution and continue to drive rapid consumption growth.”

Norbord recorded an Adjusted loss of $8 million or $0.10 per share (basic and diluted) in the second quarter of 2019 compared to an Adjusted loss of $2 million or $0.02 per share (basic and diluted) in the first quarter of 2019 and Adjusted earnings of $167 million or $1.92 per diluted share ($1.93 per basic share) in the second quarter of 2018. Adjusted earnings exclude non-recurring or other items and use a normalized income tax rate:

1

Exhibit 99.1

$ millions	Q2 2019		Q1 2019		Q2 2018		6 mos 2019		6 mos 2018
(Loss) earnings	(14	)	1		174		(13	)	269
Adjusted for:
Loss on disposal of assets	1		—		—		1		—
Stock-based compensation and related costs	1		1		1		2		2
Costs on early extinguishment of 2020 Notes	10		—		—		10		—
Costs related to 100 Mile House indefinite curtailment	2		—		—		2		—
Reported income tax (recovery) expense	(10	)	(5	)	53		(15	)	89
Adjusted pre-tax (loss) earnings	(10	)	(3	)	228		(13	)	360
Income tax recovery (expense) at statutory rate	2		1		(61	)	3		(97	)
Adjusted (loss) earnings	(8	)	(2	)	167		(10	)	263

Market Conditions

In North America, US housing demand continued to be negatively impacted by affordability concerns and record rainfall across the US which has constrained homebuilding activity in the past three quarters. Year-to-date US housing starts were down 4% versus the same period in 2018, with single-family starts, which use approximately three times more OSB than multifamily, decreasing by 5%. The June seasonally adjusted annualized rate was 1.25 million starts, which is 6% higher than the pace at this time last year, while the pace of housing permits (the more forward-looking indicator) was 1.22 million. The consensus forecast from US housing economists is approximately 1.25 million starts for 2019, unchanged from last year.

North American benchmark OSB prices decreased in all regions due to the continued pullback in demand from homebuilding. As a result, average benchmark prices were lower than both the prior quarter and the same quarter last year. The table below summarizes average benchmark OSB prices ($ per Msf, 7/16-inch basis) by region for the relevant quarters:

North American region	% of Norbord’s operating capacity	Q2 2019	Q1 2019	Q2 2018
North Central	15%	188	211	426
South East	36%	186	197	419
Western Canada	29%	153	160	403

In Europe, panel markets remained strong, driven by continued OSB demand growth in Norbord’s core geographies. In local currency terms, average panel prices were in line with both comparative quarters with the exception of Germany, where prices decreased modestly due to a macro slowdown in industrial production.

Performance

North American OSB shipments were up 1% quarter-over-quarter, despite four fewer fiscal days, due to seasonally higher demand. Shipments were down 5% year-over-year reflecting the slowdown in US homebuilding demand over the past three quarters. Norbord’s specialty products (including industrial and export) represented approximately 25% of the Company’s North American OSB sales volume in the last four quarters.

Excluding the curtailed Chambord, Quebec mill, Norbord’s operating North American OSB mills produced at 88% of stated capacity, compared to 85% in the prior quarter and 98% in the same quarter last year. Changes in capacity

2

Exhibit 99.1

utilization were due to the timing of annual maintenance shuts and other downtime. In addition, a portion of the year-over-year decrease was due to the December 31, 2018 restatement of annual production capacities at a number of mills.

Norbord’s North American OSB cash production costs per unit (before mill profit share) decreased 6% versus the prior quarter due to lower costs related to annual maintenance shuts and other downtime as well as improved productivity and raw material usages and lower resin prices. Unit costs were unchanged versus the same quarter last year as the negative impact of higher annual maintenance shuts and other downtime offset lower resin prices and the benefit of a weaker Canadian dollar.

On June 11, 2019, the Company announced the indefinite curtailment of its 100 Mile House, British Columbia mill starting in August 2019 as it is no longer economically viable to continue to operate the mill. The region where the mill operates has been under mounting pressure for the past decade as a result of the mountain pine beetle epidemic. This challenge has been further exacerbated by the significant wildfires that the province of BC experienced in the summers of 2017 and 2018. During the quarter, a net charge of $2 million was recognized to provide for severance and related costs. The 100 Mile House mill has a stated annual production capacity of 440 MMsf (3/8-inch basis), or 6% of the Company’s North American stated annual capacity. Norbord will continue to supply its current customers and meet expected future customer demand with production from its 11 other operating North American OSB mills, including export products for the Japanese market from its Grande Prairie and High Level, Alberta mills.

During the quarter, the Company announced that its mill in High Level, Alberta had twice temporarily suspended production due to wildfires burning nearby in the region and to comply with evacuation orders. In both cases, the mill resumed normal production after the evacuation orders had been lifted and a total of approximately 20 days of production were curtailed. The High Level mill has a stated annual production capacity of 860 MMsf (3/8-inch basis), or 11% of the Company’s North American stated annual capacity.

In Europe, Norbord’s shipments were down 9% versus the prior quarter, due to fewer fiscal days and seasonally lower demand, and were up 7% versus the same quarter last year. The European mills produced at 91% of stated capacity in the quarter, up from 89% in both the prior quarter and same quarter last year due to the continued ramp-up of the reinvested Inverness, Scotland mill following its start-up in the fourth quarter of 2017.

The Company did not generate any Margin Improvement Program (MIP) gains year-to-date as improved productivity and lower raw material usage at the restarted Huguley, Alabama and expanded Inverness, Scotland mills were offset by the timing of annual maintenance shuts and other downtime, as well as the operating impact of adverse weather this year. MIP is measured relative to the prior year at constant prices and exchange rates.

Capital investments (including intangible assets) were $30 million in each of the second and first quarters of 2019 compared to $54 million in the second quarter of last year. The year-over-year decrease was primarily attributable to the timing of executing on various capital projects, including the Inverness project.

Included in year-to-date capital investments is $9 million of the $46 million (£35 million) budget for the second phase investment to further expand capacity at the Inverness, Scotland mill by 225 MMsf (3/8-inch basis) (200,000 cubic metres) through the addition of a second wood room and dryer. This project is expected to take approximately two years to complete and is consistent with the Company’s strategy of growing its European OSB capacity to serve rapid consumption growth in its key markets.

Also included in year-to-date capital investments is $13 million ($40 million project-to-date) of the $71 million budget to rebuild the indefinitely curtailed Chambord, Quebec mill for an eventual restart. The Company has not yet made a restart decision, however, and will only do so when it is sufficiently clear that customers require more product.

3

Exhibit 99.1

Norbord’s 2019 capital expenditure budget is approximately $150 million for maintenance of business and projects focused on reducing manufacturing costs across the mills, as well as a portion of the Inverness, Scotland phase 2 and Chambord, Quebec mill rebuild projects. It also includes investments to support the Company’s strategy to increase the production of specialty products for industrial applications and exports.

Operating working capital was $162 million at quarter-end compared to $183 million at the end of the prior quarter and $212 million at the end of the same quarter last year. The decreases were primarily due to lower North American OSB prices as well as timing of collections and payments. The quarter-over-quarter decrease was further due to the seasonal drawdown of log inventory in the northern mills in North America. The year-over-year decrease was further due to higher annual maintenance shuts and other downtime in the current quarter. Working capital continues to be managed at minimal levels across the Company.

At quarter-end, Norbord had unutilized available liquidity of $551 million, consisting of $315 million in cash and $236 million in revolving bank lines. Pro forma for the early repayment of the 2020 notes (see below) and repayment of the accounts receivable securitization drawings subsequent to quarter-end, the Company’s liquidity and cash would have been $302 million and $(16) million, respectively. The Company’s tangible net worth was $1,069 million and net debt to total capitalization on a book basis was 36%, both well within bank covenants.

Bond Issue and Redemption

In June 2019, the Company completed the issuance of $350 million in senior secured notes due July 2027 with an interest rate of 5.75%. Debt issue costs of $6 million were incurred with the issuance. Subsequent to quarter-end on July 17, 2019, the Company used a portion of the proceeds to redeem, prior to maturity, the entire $240 million of senior secured notes due December 2020. A premium of $9 million was paid on the early redemption and a $1 million non-cash charge related to unamortized debt issue costs was recognized. The 2027 notes rank pari passu with the Company’s existing senior secured notes due in 2023 and committed revolving bank lines.

Dividend

The Board of Directors declared a quarterly variable dividend of C $0.40 per common share, payable on September 23, 2019 to shareholders of record on August 30, 2019, unchanged from the prior quarter’s level. Any dividends reinvested on September 23, 2019 under the Company’s Dividend Reinvestment Plan will be used by the transfer agent to purchase common shares on the open market.

Norbord’s dividends are declared in Canadian dollars. Registered and beneficial shareholders may opt to receive their dividends in either Canadian dollars or the US dollar equivalent. Unless they request the US dollar equivalent, shareholders will receive dividends in Canadian dollars. The US dollar equivalent of the dividend will be based on the Bloomberg FX Fixings Service (BFIX) noon exchange rate on the record date or, if the record date falls on a weekend or holiday, on the BFIX noon exchange rate of the preceding business day.

Registered shareholders wishing to receive the US dollar dividend equivalent should contact Norbord’s transfer agent, AST Trust Company (Canada), by phone at 1-800-387-0825 or by email at inquiries@astfinancial.com. Beneficial shareholders (i.e., those holding their Norbord shares with their brokerage) should contact the broker with whom their shares are held.

Norbord’s variable dividend policy targets the payment to shareholders of a portion of free cash flow based upon the Company’s financial position, results of operations, cash flow, capital requirements and restrictions under the Company’s revolving bank lines, as well as the market outlook for the Company’s principal products and broader market and economic conditions, among other factors. The Board retains the discretion to amend the Company’s dividend policy in any manner and at any time as it may deem necessary or appropriate in the future. For these

4

Exhibit 99.1

reasons, as well as others, the Board in its sole discretion can decide to increase, maintain, decrease, suspend or discontinue the payment of cash dividends in the future.

Additional Information

Norbord’s Q2 2019 letter to shareholders, news release, management’s discussion and analysis, consolidated unaudited interim financial statements and notes to the financial statements have been filed on SEDAR (www.sedar.com), EDGAR (www.sec.gov) and are available in the investor section of the Company’s website at www.norbord.com. Shareholders may receive a hard copy of Norbord’s audited annual financial statements free of charge upon request. The Company has also made available on its website presentation materials containing certain historical and forward-looking information relating to Norbord, including materials that contain additional information about the Company’s financial results. Shareholders are encouraged to read this material.

Conference Call

Norbord will hold a conference call for analysts and institutional investors on Thursday, August 1, 2019 at 11:00 a.m. ET. The call will be broadcast live over the internet via www.norbord.com and www.newswire.ca. An accompanying presentation will be available in the “Investors/Conference Call” section of the Norbord website prior to the start of the call. A replay number will be available approximately one hour after completion of the call and will be accessible until August 31, 2019 by dialing 1-888-203-1112 or 647-436-0148 (passcode 8316833 and pin 7805). Audio playback and a written transcript will be available on the Norbord website.

Norbord Profile

Norbord Inc. is a leading global manufacturer of wood-based panels and the world’s largest producer of oriented strand board (OSB). In addition to OSB, Norbord manufactures particleboard, medium density fibreboard and related value-added products. Norbord has assets of approximately $1.9 billion and employs approximately 2,700 people at 17 plant locations in the United States, Canada and Europe. Norbord is a publicly traded company listed on the Toronto Stock Exchange and New York Stock Exchange under the symbol “OSB”.

-end-

Contact:

Heather Colpitts

Senior Manager, Corporate Affairs

Tel. (416) 365-0705

info@norbord.com

This news release contains forward-looking statements, as defined by applicable securities legislation, including statements related to our strategy, projects, plans, future financial or operating performance and other statements that express management’s expectations or estimates of future performance. Often, but not always, forward-looking statements can be identified by the use of words such as “set up,” “pro forma,” “on track,” “expect,” “estimate,” “forecast,” “target,” “outlook,” “schedule,” “represent,” “continue,” “intend,” “should,” “would,” “could,” “will,” “can,” “might,” “may,” and other expressions which are predictions of or indicate future events, trends or prospects and which do not relate to historical matters identify forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Norbord to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Although Norbord believes it has a reasonable basis for making these forward-looking statements, readers are cautioned not to place undue reliance on such forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predictions, forecasts and other forward-looking statements will not occur. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include: assumptions in connection with the economic and financial conditions in the US, Europe, Canada and globally; risks inherent to product concentration and cyclicality; effects of competition and product pricing pressures; risks inherent to customer dependence; effects of variations in the price and availability of manufacturing inputs, including continued access to fibre resources at competitive prices; availability of rail services and port facilities; various events that could disrupt operations, including natural or catastrophic events and ongoing relations with employees; impact of changes to, or non-compliance with, environmental regulations; impact of any product liability claims in excess of insurance coverage; risks inherent to a capital intensive industry; impact of future outcomes of tax exposures; potential future changes in tax laws; effects of currency exposures and exchange rate fluctuations; future operating costs, availability of financing, impact of future cross-border trade rulings or agreements; ability to implement new or upgraded information technology infrastructure; impact of information technology service disruptions or failures; and other risks and factors described from time to time in filings with Canadian securities regulatory authorities.

5

Exhibit 99.1

Except as required by applicable law, Norbord does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by, or on behalf of, the Company, whether as a result of new information, future events or otherwise, or to publicly update or revise the above list of factors affecting this information. See the “Caution Regarding Forward-Looking Information” statement in the January 31, 2019 Annual Information Form and the cautionary statement contained in the “Forward-Looking Statements” section of the 2018 Management’s Discussion and Analysis dated January 31, 2019 and Q2 2019 Management’s Discussion and Analysis dated July 31, 2019.

Norbord defines Adjusted EBITDA as earnings determined in accordance with International Financial Reporting Standards (IFRS) before finance costs, interest income, income taxes, depreciation, amortization and non-recurring or other items; Adjusted earnings (loss) as earnings determined in accordance with IFRS before non-recurring or other items and using a normalized income tax rate; and Adjusted earnings (loss) per share is Adjusted earnings (loss) divided by the weighted average number of common shares outstanding (on a basic or diluted basis, as specified). Adjusted EBITDA, Adjusted earnings (loss), and Adjusted earnings (loss) per share are non-IFRS financial measures, do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. See “Non-IFRS Financial Measures” in Norbord’s 2018 Management’s Discussion and Analysis dated January 31, 2019 and Q2 2019 Management’s Discussion and Analysis dated July 31, 2019 for a quantitative reconciliation of Adjusted EBITDA and Adjusted earnings to earnings (the most directly comparable IFRS measure).

6

Exhibit 99.1

Peter Wijnbergen

President & CEO

August 1, 2019

To Our Shareholders:

While our mills ran better during Q2, the third straight quarter of challenging North American market conditions continued to negatively affect our financial performance. US homebuilding activity has been pulling back since the fall of last year as homebuyers reacted to markedly higher mortgage rates and homebuilders struggled to break ground on new homes amid record-breaking wet weather.

Looking forward, we share the view of industry analysts that the US housing market - the biggest driver of OSB demand - will strengthen through the balance of 2019. Mortgage rates are back down below 4%, and homebuilders are pivoting to offer more affordably priced entry-level homes to entice first-time buyers. Combined with a healthy spring new home selling season, this sets the market up for a stronger second half of the year.

In our European segment, while German OSB prices have declined from the high levels experienced over the last number of quarters, our sales volumes and margins remained strong. We may see continued downward pressure on European panel prices as the global trade war impacts macro economic conditions, but we expect the ongoing trend of substituting OSB for plywood will continue to drive accelerated demand growth, and our expanded Inverness, Scotland mill is ramping up to meet this need.

Against the backdrop of the relatively weak North American OSB market, we remain focused on “controlling our controllables”. We continued to adjust our production levels to match slower than expected customer demand and ensure we only produced what we could sell. Despite taking the same number of mill-days down in both Q2 and Q1, we were able to sequentially lower our manufacturing costs as a result of higher line speeds and more efficient raw material usage.

We also announced the indefinite curtailment of our mill in 100 Mile House, British Columbia. This was a difficult decision but necessary for our business, as the combination of a wood supply shortage and high wood prices do not support the economic operation of the mill. We have a first-class team in 100 Mile House, and it is a testament to their professionalism and dedication that the mill continues to run very well as we utilize the remaining wood we have on site. We are transitioning manufacturing to our lower cost mills in High Level and Grande Prairie, Alberta, from which we will continue to meet current and future customer demand.

Given the strength of the US high yield bond market, we also took steps to maintain balance sheet flexibility by terming out next year’s $240 million bond maturity to 2027 at an attractive 5.75% interest rate. Further, we took the opportunity to borrow an additional $110 million principal in the new bond to bolster our liquidity position, leaving us with pro forma liquidity of just over $300 million.

While it was a disappointing quarter from a bottom-line perspective, we have a demonstrated track record of managing our business to ensure we can navigate through periods of weaker demand for our products.

7

Exhibit 99.1

Market conditions are now slowly firming and our mills are running well. We are optimistic that our results are set to improve along side US housing-related demand through the remainder of the year.

We look forward to reporting on our progress next quarter, and thank our shareholders for their continuing support.

Peter Wijnbergen

President & CEO

This letter includes forward-looking statements, as defined by applicable securities legislation, including statements related to our strategy, projects, plans, future financial or operating performance, market outlook, and other statements that express management’s expectations or estimates of future performance. Often, but not always, forward-looking statements can be identified by the use of words such as “pro forma,” “set up,” “on track,” “expect,” “suggest,” “support,” “believe,” “should,” “potential,” “likely,” “continue,” “forecast,” “plan,” “indicate,” “consider,” “future,” or variations of such words and phrases or statements that certain actions “may,” “could,” “must,” “would,” “might,” or “will” be undertaken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Norbord to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. See the “Caution Regarding Forward-Looking Information” statement in the January 31, 2019 Annual Information Form and the cautionary statement contained in the “Forward-Looking Statements” section of the 2018 Management’s Discussion and Analysis dated January 31, 2019 and Q2 2019 Management’s Discussion and Analysis dated July 31, 2019.

Norbord defines Adjusted EBITDA as earnings determined in accordance with International Financial Reporting Standards (IFRS) before finance costs, interest costs, income taxes, depreciation, amortization and non-recurring or other items; Adjusted earnings (loss) as earnings determined in accordance with IFRS before non-recurring or other items and using a normalized income tax rate; and Adjusted earnings (loss) per share as Adjusted earnings (loss) divided by the weighted average number of common shares outstanding (on a basic or diluted basis, as specified). Adjusted EBITDA, Adjusted earnings (loss), and Adjusted earnings (loss) per share are non-IFRS financial measures, do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. See the Non-IFRS Financial Measures section in Norbord’s Q2 2019 Management’s Discussion and Analysis dated July 31, 2019 for a quantitative reconciliation of Adjusted EBITDA and Adjusted earnings to earnings (the most directly comparable IFRS measure).

8

Exhibit 99.1

Interim Consolidated Balance Sheets

(Unaudited) (US $ millions)	Jul 6, 2019		Dec 31, 2018
Assets
Current assets
Cash and cash equivalents	$	315	$	128
Accounts receivable	136		149
Taxes receivable	71		—
Inventory	234		220
Prepaids	12		12
	768		509
Non-current assets
Property, plant and equipment	1,410		1,402
Intangible assets	19		20
Deferred income tax assets	5		6
Other assets	5		5
	1,439		1,433
	$	2,207	$	1,942
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities	$	220	$	293
Current portion of long-term debt	240		—
Accrued early debt extinguishment costs	9		—
Accrued liability under ASPP	—		42
Taxes payable	—		28
	469		363
Non-current liabilities
Long-term debt	656		550
Other long-term debt	82		—
Other liabilities	49		34
Deferred income tax liabilities	202		172
	989		756
Shareholders’ equity	749		823
	$	2,207	$	1,942

9

Exhibit 99.1

Interim Consolidated Statements of (Loss) Earnings

(Unaudited) Periods ended Jul 6 and Jun 30 (US $ millions, except per share information)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Sales	$	447		$	707		$	923		$	1,283
Cost of sales	(408		)	(430		)	(840		)	(832		)
General and administrative expenses	(4		)	(5		)	(7		)	(10		)
Depreciation and amortization	(34		)	(36		)	(69		)	(66		)
Loss on disposal of assets	(1		)	—			(1		)	—
Costs related to 100 Mile House indefinite curtailment announcement	(2		)	—			(2		)	—
Operating (loss) income	(2		)	236			4			375
Non-operating items:
Finance costs	(12		)	(10		)	(23		)	(18		)
Interest income	—			1			1			1
Costs on early extinguishment of 2020 Notes	(10		)	—			(10		)	—
(Loss) earnings before income tax	(24		)	227			(28		)	358
Income tax recovery (expense)	10			(53		)	15			(89		)
(Loss) earnings	$	(14	)	$	174		$	(13	)	$	269
(Loss) earnings per common share
Basic	$	(0.17	)	$	2.01		$	(0.16	)	$	3.11
Diluted	(0.17		)	2.00			(0.16		)	3.09

Interim Consolidated Statements of Comprehensive (Loss) Income

(Unaudited) Periods ended Jul 6 and Jun 30 (US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
(Loss) earnings	$	(14	)	$	174		$	(13	)	$	269
Other comprehensive (loss) income, net of tax
Items that will not be reclassified to earnings:
Actuarial (loss) gain on post-employment obligations	(4		)	4			(5		)	4
Items that may be reclassified subsequently to earnings:
Foreign currency translation loss on foreign operations	(12		)	(21		)	(6		)	(10		)
Other comprehensive loss, net of tax	(16		)	(17		)	(11		)	(6		)
Comprehensive (loss) income	$	(30	)	$	157		$	(24	)	$	263

10

Exhibit 99.1

Interim Consolidated Statements of

Changes in Shareholders’ Equity

(Unaudited) Periods ended Jul 6 and Jun 30 (US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Share capital
Balance, beginning of period	$	1,280		$	1,353		$	1,280		$	1,350
Issue of common shares upon exercise of options and DRIP	—			3			—			6
Reverse accrual for common shares to be repurchased and cancelled under ASPP	—			—			24			—
Common shares repurchased and cancelled	—			—			(24		)	—
Balance, end of period	$	1,280		$	1,356		$	1,280		$	1,356
Merger reserve	$	(96	)	$	(96	)	$	(96	)	$	(96	)
Contributed surplus
Balance, beginning of period	$	4		$	8		$	4		$	8
Stock options exercised	—			(1		)	—			(1		)
Contributed surplus	$	4		$	7		$	4		$	7
Retained deficit
Balance, beginning of period	$	(193	)	$	(13	)	$	(168	)	$	(67	)
(Loss) earnings	(14		)	174			(13		)	269
Common share dividends	(24		)	(40		)	(49		)	(81		)
Reverse accrual for common shares to be repurchased and cancelled under ASPP	—			—			18			—
Common shares repurchased and cancelled	—			—			(19		)	—
Balance, end of period(i)	$	(231	)	$	121		$	(231	)	$	121
Accumulated other comprehensive loss
Balance, beginning of period	$	(192	)	$	(165	)	$	(197	)	$	(176	)
Other comprehensive loss	(16		)	(17		)	(11		)	(6		)
Balance, end of period	$	(208	)	$	(182	)	$	(208	)	$	(182	)
Shareholders’ equity	$	749		$	1,206		$	749		$	1,206

(i)Retained (deficit) earnings comprised of:
Deficit arising on cashless exercise of warrants in 2013	$	(263	)	$	(263	)
All other retained earnings	32			384
	$	(231	)	$	121

11

Exhibit 99.1

Interim Consolidated Statements of Cash Flows

(Unaudited) Periods ended Jul 6 and Jun 30 (US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
CASH PROVIDED BY (USED FOR):
Operating activities
(Loss) earnings	$	(14	)	$	174		$	(13	)	$	269
Items not affecting cash:
Depreciation and amortization	34			36			69			66
Deferred income tax	11			28			32			31
Costs related to 100 Mile House indefinite curtailment announcement	2			—			2			—
Costs on early extinguishment of 2020 Notes	10			—			10			—
Loss on disposal of assets, net	1			—			1			—
Other items	(11		)	(5		)	7			2
	33			233			108			368
Net change in non-cash operating working capital balances	39			19			(72		)	(74		)
Net change in taxes receivable and taxes payable	(36		)	(2		)	(97		)	(40		)
	36			250			(61		)	254
Investing activities
Investment in property, plant and equipment	(37		)	(61		)	(77		)	(117		)
Investment in intangible assets	(1		)	(1		)	(1		)	(1		)
	(38		)	(62		)	(78		)	(118		)
Financing activities
Issuance of debt	350			—			350			—
Common share dividends paid	(24		)	(40		)	(49		)	(81		)
Debt issuance costs	(4		)	—			(4		)	—
Issue of common shares	—			2			—			4
Repurchase of common shares	—			—			(43		)	—
Repayment of lease obligations	(3		)	—			(6		)	—
Accounts receivable securitization drawings	2			—			82			—
	321			(38		)	330			(77		)
Foreign exchange revaluation on cash and cash equivalents held	(6		)	(5		)	(4		)	(2		)
Cash and cash equivalents
Increase during period	313			145			187			57
Balance, beginning of period	2			153			128			241
Balance, end of period	$	315		$	298		$	315		$	298

12

EX-99.2

Exhibit 99.2

Interim Consolidated Balance Sheets

(Unaudited) (US $ millions)	Note	Jul 6, 2019		Dec 31, 2018
Assets
Current assets
Cash and cash equivalents		$	315	$	128
Accounts receivable	3	136		149
Taxes receivable		71		—
Inventory	4	234		220
Prepaids		12		12
		768		509
Non-current assets
Property, plant and equipment	7, 16	1,410		1,402
Intangible assets		19		20
Deferred income tax assets		5		6
Other assets		5		5
		1,439		1,433
		$	2,207	$	1,942
Liabilities and shareholders’ equity
Current liabilities
Accounts payable and accrued liabilities		$	220	$	293
Current portion of long-term debt	5	240		—
Accrued early debt extinguishment costs	5	9		—
Accrued liability under ASPP		—		42
Taxes payable		—		28
		469		363
Non-current liabilities
Long-term debt	5	656		550
Other long-term debt	3	82		—
Other liabilities	6	49		34
Deferred income tax liabilities		202		172
		989		756
Shareholders’ equity		749		823
		$	2,207	$	1,942

(See accompanying notes, including note 14 for commitments and contingencies)

1

Exhibit 99.2

Interim Consolidated Statements of (Loss) Earnings

(Unaudited) Periods ended Jul 6 and Jun 30 (US $ millions, except per share information)	Note	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Sales	16	$	447		$	707		$	923		$	1,283
Cost of sales		(408		)	(430		)	(840		)	(832		)
General and administrative expenses		(4		)	(5		)	(7		)	(10		)
Depreciation and amortization	16	(34		)	(36		)	(69		)	(66		)
Loss on disposal of assets		(1		)	—			(1		)	—
Costs related to 100 Mile House indefinite curtailment announcement	9	(2		)	—			(2		)	—
Operating (loss) income		(2		)	236			4			375
Non-operating items:
Finance costs		(12		)	(10		)	(23		)	(18		)
Interest income		—			1			1			1
Costs on early extinguishment of 2020 Notes	5	(10		)	—			(10		)	—
(Loss) earnings before income tax		(24		)	227			(28		)	358
Income tax recovery (expense)	10	10			(53		)	15			(89		)
(Loss) earnings		$	(14	)	$	174		$	(13	)	$	269
(Loss) earnings per common share	11
Basic		$	(0.17	)	$	2.01		$	(0.16	)	$	3.11
Diluted		(0.17		)	2.00			(0.16		)	3.09

(See accompanying notes)

Interim Consolidated Statements of Comprehensive (Loss) Income

(Unaudited) Periods ended Jul 6 and Jun 30 (US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
(Loss) earnings	$	(14	)	$	174		$	(13	)	$	269
Other comprehensive (loss) income, net of tax
Items that will not be reclassified to earnings:
Actuarial (loss) gain on post-employment obligations	(4		)	4			(5		)	4
Items that may be reclassified subsequently to earnings:
Foreign currency translation loss on foreign operations	(12		)	(21		)	(6		)	(10		)
Other comprehensive loss, net of tax	(16		)	(17		)	(11		)	(6		)
Comprehensive (loss) income	$	(30	)	$	157		$	(24	)	$	263

(See accompanying notes)

2

Exhibit 99.2

Interim Consolidated Statements of

Changes in Shareholders’ Equity

(Unaudited) Periods ended Jul 6 and Jun 30 (US $ millions)	Note	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Share capital	8
Balance, beginning of period		$	1,280		$	1,353		$	1,280		$	1,350
Issue of common shares upon exercise of options and DRIP		—			3			—			6
Reverse accrual for common shares to be repurchased and cancelled under ASPP		—			—			24			—
Common shares repurchased and cancelled		—			—			(24		)	—
Balance, end of period		$	1,280		$	1,356		$	1,280		$	1,356
Merger reserve	8	$	(96	)	$	(96	)	$	(96	)	$	(96	)
Contributed surplus	8
Balance, beginning of period		$	4		$	8		$	4		$	8
Stock options exercised		—			(1		)	—			(1		)
Balance, end of period		$	4		$	7		$	4		$	7
Retained (deficit) earnings
Balance, beginning of period		$	(193	)	$	(13	)	$	(168	)	$	(67	)
(Loss) earnings		(14		)	174			(13		)	269
Common share dividends		(24		)	(40		)	(49		)	(81		)
Reverse accrual for common shares to be repurchased and cancelled under ASPP	8	—			—			18			—
Common shares repurchased and cancelled	8	—			—			(19		)	—
Balance, end of period(i)		$	(231	)	$	121		$	(231	)	$	121
Accumulated other comprehensive loss
Balance, beginning of period		$	(192	)	$	(165	)	$	(197	)	$	(176	)
Other comprehensive loss		(16		)	(17		)	(11		)	(6		)
Balance, end of period	8	$	(208	)	$	(182	)	$	(208	)	$	(182	)
Shareholders’ equity		$	749		$	1,206		$	749		$	1,206

(See accompanying notes)

(i)Retained (deficit) earnings comprised of:
Deficit arising on cashless exercise of warrants in 2013	$	(263	)	$	(263	)
All other retained earnings	32			384
	$	(231	)	$	121

3

Exhibit 99.2

Interim Consolidated Statements of Cash Flows

(Unaudited) Periods ended Jul 6 and Jun 30 (US $ millions)	Note	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
CASH PROVIDED BY (USED FOR):
Operating activities
(Loss) earnings		$	(14	)	$	174		$	(13	)	$	269
Items not affecting cash:
Depreciation and amortization	16	34			36			69			66
Deferred income tax	10	11			28			32			31
Costs related to 100 Mile House indefinite curtailment announcement	9	2			—			2			—
Costs on early extinguishment of 2020 Notes	5	10			—			10			—
Loss on disposal of assets, net		1			—			1			—
Other items	12	(11		)	(5		)	7			2
		33			233			108			368
Net change in non-cash operating working capital balances	12	39			19			(72		)	(74		)
Net change in taxes receivable and taxes payable		(36		)	(2		)	(97		)	(40		)
		36			250			(61		)	254
Investing activities
Investment in property, plant and equipment		(37		)	(61		)	(77		)	(117		)
Investment in intangible assets		(1		)	(1		)	(1		)	(1		)
		(38		)	(62		)	(78		)	(118		)
Financing activities
Issuance of debt	5	350			—			350			—
Common share dividends paid		(24		)	(40		)	(49		)	(81		)
Debt issuance costs		(4		)	—			(4		)	—
Issue of common shares	8	—			2			—			4
Repurchase of common shares	8	—			—			(43		)	—
Repayment of lease obligations	7	(3		)	—			(6		)	—
Accounts receivable securitization drawings	3	2			—			82			—
		321			(38		)	330			(77		)
Foreign exchange revaluation on cash and cash equivalents held		(6		)	(5		)	(4		)	(2		)
Cash and cash equivalents
Increase during period		313			145			187			57
Balance, beginning of period		2			153			128			241
Balance, end of period		$	315		$	298		$	315		$	298

(See accompanying notes, including note 12 for supplemental cash flow information)

4

Exhibit 99.2

Notes to the Interim Consolidated Financial Statements

(in US $, unless otherwise noted)

In these condensed consolidated interim financial statements (interim financial statements) notes, “Norbord” means Norbord Inc. and all of its consolidated subsidiaries and affiliates, and “Company” means Norbord Inc. as a separate corporation, unless the context implies otherwise. “Brookfield” means Brookfield Asset Management Inc., or any of its consolidated subsidiaries and affiliates, which are related parties by virtue of holding a significant equity interest in the Company.

NOTE 1. NATURE AND DESCRIPTION OF THE COMPANY

Norbord is an international producer of wood-based panels with 17 mills in the United States, Canada and Europe. Norbord is a publicly traded company listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE). The ticker symbol on both exchanges is “OSB”. The Company is incorporated under the Canada Business Corporations Act and is headquartered in Toronto, Ontario, Canada.

At period-end, Brookfield's interest was approximately 43% of the outstanding common shares of the Company.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES

(a)      Statement of Compliance

These interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, on a basis consistent with the accounting policies Norbord disclosed in its audited consolidated financial statements as at, and for the year ended, December 31, 2018 unless noted otherwise in note 2(c). These interim financial statements do not contain all of the disclosures that are required in annual financial statements prepared under International Financial Reporting Standards (IFRS) and should be read in conjunction with Norbord’s 2018 audited annual financial statements which include information necessary or useful to understanding Norbord’s business and financial statement presentation. Norbord’s interim results are not necessarily indicative of its results for a full year.

These interim financial statements were authorized for issuance by the Board of Directors of the Company on July 31, 2019.

(b)      Basis of Presentation

These interim financial statements include the accounts of the Company and all of its wholly-owned subsidiaries.

(c) Changes in Accounting Policies

(i) Leases

In January 2016, the International Accounting Standards Board (IASB) issued IFRS 16, Leases (IFRS 16), which requires all leases to be reported on the balance sheet unless certain criteria for exclusion are met. IFRS 16 became effective for Norbord on January 1, 2019 and has been applied using the modified retrospective approach under which the cumulative effect of initial application was recognized in retained earnings as at January 1, 2019. As a result, comparative information has not been restated and is reported under IAS 17, Leases (IAS 17).

Upon transition to IFRS 16, Norbord recognized $24 million of lease liabilities and corresponding right-of-use (ROU) assets. Norbord elected the practical expedient to apply IFRS 16 only to contracts previously identified as leases under IAS 17. The lease liabilities for leases previously identified as operating leases under IAS 17 were measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate as at January 1, 2019, and have been included in accounts payable and accrued liabilities (current portion) and other liabilities (non-current portion). The weighted average incremental borrowing rate applied to these lease liabilities on January 1, 2019 was 4.6%. There were no material differences from the operating lease commitments disclosed in Norbord's 2018 audited annual financial statements. ROU assets related to these leases were measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments, and have been included in property, plant and equipment (note 7).

The carrying amounts of $3 million as at January 1, 2019 of the ROU assets and lease liabilities for leases previously classified as finance leases under IAS 17 have been determined to be the carrying amounts of the lease assets and lease liabilities measured under IAS 17 immediately before that date.

5

Exhibit 99.2

The following practical expedients were also applied upon transition to IFRS 16:

• excluded initial direct costs from the measurement of ROU assets at the date of initial application;

• used hindsight when determining the lease term where the contract contains options to extend or terminate the lease;

• used a single discount rate on a portfolio of leases with similar characteristics.

The application of the above practical expedients did not result in any impact to retained earnings.

The revised accounting policy is as follows:

At inception of a contract, Norbord will assess whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. When a contract contains a lease, Norbord will recognize an ROU asset and a lease obligation at commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability less adjustments. ROU assets are recorded at cost less accumulated depreciation, and are depreciated on a straight-line basis over the shorter of the estimated useful life of the ROU asset or the lease term, and would be adjusted for certain remeasurements of the lease liability. When events or changes in circumstances are identified which may indicate that their carrying amount is less than the recoverable amount, ROU assets would be reviewed for impairment as described in note 2(h) of Norbord's 2018 audited annual financial statements.

Lease liabilities are initially measured at the net present value of lease payments outstanding at lease commencement, discounted using the interest rate implicit in the lease or, if not readily determinable, Norbord's estimated incremental borrowing rate commensurate with the lease term. Subsequently, lease liabilities are measured at amortized cost using the effective interest method and remeasured to reflect any reassessment of options or lease modifications, or to reflect changes in lease payments, with a corresponding adjustment to the ROU asset or statement of earnings if the ROU asset has been reduced to zero. Judgement has been applied in determining the lease term for contracts with renewal options and whether Norbord is reasonably certain to exercise such options. The impact on the lease term resulting from this assessment could impact the amount of lease liabilities and ROU assets recognized.

Norbord has elected not to recognize ROU assets and lease liabilities for leases with terms of less than 12 months and leases of low-value assets. Lease payments associated with these leases are recognized in earnings as an expense on a straight-line basis over the lease term.

(ii) Uncertainty over Income Tax Treatments

In June 2017, the IFRS Interpretations Committee of the IASB issued IFRIC 23, Uncertainty over Income Tax Treatments (IFRIC 23). The interpretation provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The interpretation became effective for Norbord on January 1, 2019 and did not have any impact on its interim financial statements.

(iii) Financial Instruments

In October 2017, the IASB issued amendments to IFRS 9 with regards to prepayment features with negative compensation. These amendments clarify that a financial asset containing prepayment features with negative compensation may be measured at amortized cost or fair value through other comprehensive income when eligibility conditions are met. The amendments became effective for Norbord on January 1, 2019 and did not have any impact on its interim financial statements.

(iv) Employee Benefits

In February 2018, the IASB issued amendments to IAS 19, Employee Benefits. The amendments clarify the actuarial assumptions to be used for defined benefit pension plans upon plan amendment, curtailment or settlement. These amendments became effective for Norbord on January 1, 2019 and did not have a significant impact on its interim financial statements.

6

Exhibit 99.2

NOTE 3. ACCOUNTS RECEIVABLE

The Company has the ability to draw up to $125 million under a multi-currency accounts receivable securitization program with a third-party trust sponsored by a highly rated Canadian financial institution. The program is revolving and has an evergreen commitment subject to termination on 12 months’ notice. Under the program, the Company has transferred substantially all of its present and future trade accounts receivable to the trust, on a fully serviced basis, for proceeds consisting of cash and deferred purchase price. However, the asset derecognition criteria under IFRS have not been met and the transferred accounts receivable remain recorded as an asset.

At period-end, the Company had transferred but continued to recognize $117 million (December 31, 2018 – $123 million) in trade accounts receivable, and the Company recorded drawings of $82 million as other long-term debt (December 31, 2018 – $nil) relating to this financing program. The level of accounts receivable transferred under the program fluctuates with the level of shipment volumes, product prices and foreign exchange rates. The amount the Company is able to draw under the program at any point in time depends on the level of accounts receivable transferred and timing of cash settlements, concentration limits and credit enhancement ratios. At period-end, the Company's drawings of $82 million were the maximum available under the program at that time. The amount the Company chooses to draw under the program will fluctuate with the Company’s cash requirements at that point in time. Any drawings are presented as other long-term debt on the balance sheet and are excluded from the net debt to total capitalization calculation for financial covenant purposes (note 5). The utilization charge, which is based on money market rates plus a margin, and other program fees are recorded as finance costs. Year-to-date, the utilization charges on drawings ranged from 1.6% to 4.0% (2018 – no utilization charges).

The securitization program contains no financial covenants; however, the program is subject to minimum credit-rating requirements. The Company must maintain a long-term issuer credit rating of at least single B (mid) or the equivalent. As at July 31, 2019, the Company’s ratings were BB (Standard & Poor’s Ratings Services) and Ba1 (Moody’s Investors Service).

NOTE 4. INVENTORY

(US $ millions)	Jul 6, 2019		Dec 31, 2018
Raw materials	$	74	$	72
Finished goods	74		69
Operating and maintenance supplies	86		79
	$	234	$	220

At period-end, the provision to reflect inventories at the lower of cost and net realizable value was $15 million (December 31, 2018 – $20 million).

NOTE 5. LONG-TERM DEBT

(US $ millions)	Jul 6, 2019			Dec 31, 2018
Principal value
5.375% senior secured notes due December 2020	$	240		$	240
6.25% senior secured notes due April 2023	315			315
5.75% senior secured notes due July 2027	350			—
	905			555
Less: Unamortized debt issue costs	(9		)	(5		)
Less: Current portion	(240		)	—
	$	656		$	550

Senior Secured Notes Due 2027

On June 24, 2019, the Company completed the issuance of $350 million in senior secured notes due July 2027 with an interest rate of 5.75%. Debt issue costs of $6 million were incurred in connection with the issuance. The notes rank pari passu with the Company's existing senior secured notes due in 2020 and 2023 and committed revolving bank lines. On July 17, 2019, the Company used the proceeds to redeem, prior to maturity, the $240 million senior secured notes due December 2020. A premium of $9 million was paid on the early redemption. In addition, a $1 million non-cash charge related to net unamortized debt issue costs was recognized.

7

Exhibit 99.2

Revolving Bank Lines

The Company has an aggregate commitment of $245 million under committed revolving bank lines which bear interest at money market rates plus a margin that varies with the Company’s credit rating. The maturity date of the total aggregate commitment is May 2021. The bank lines are secured by a first lien on the Company’s North American OSB inventory and property, plant and equipment. This lien is shared pari passu with holders of the 2020, 2023 and 2027 senior secured notes.

At period-end, none (December 31, 2018 – none) of the revolving bank lines were drawn as cash, $9 million (December 31, 2018 – $8 million) was utilized for letters of credit and guarantees and $236 million (December 31, 2018 – $237 million) was available to support short-term liquidity requirements.

The revolving bank lines contain two quarterly financial covenants: minimum tangible net worth of $500 million and maximum net debt to total capitalization, book basis, of 65%. The Company was in compliance with the financial covenants at period-end.

NOTE 6. OTHER LIABILITIES

(US $ millions)	Jul 6, 2019		Dec 31, 2018
Defined benefit pension obligations	$	24	$	20
Lease obligations	13		2
Accrued employee benefits	7		6
Reforestation obligations	4		2
Unrealized monetary hedge loss	—		3
Other	1		1
	$	49	$	34

NOTE 7. LEASES

Information about Norbord's ROU assets included in property, plant and equipment is as follows:

(US $ millions)	Land		Buildings		Production Equipment			Total
January 1, 2019	$	3	$	4	$	17		$	24
Additions	—		—		2			2
Depreciation	—		—		(5		)	(5		)
July 6, 2019	$	3	$	4	$	14		$	21

During the quarter and year-to-date, less than $1 million and $1 million, respectively, of payments related to short-term leases was included in cost of sales. During the quarter and year-to-date, finance costs include less than $1 million related to lease liabilities.

During the quarter and year-to-date, total cash outflows related to all leases were $3 million and $7 million respectively.

Leases of certain production equipment contain residual value guarantees of the ROU assets at the end of the contract term. At period-end, the expected amount payable under these residual value guarantees was less than $1 million.

8

Exhibit 99.2

NOTE 8. SHAREHOLDERS’ EQUITY

Share Capital

	6 mos 2019					6 mos 2018
	Shares (millions)		Amount (US $ millions)			Shares (millions)	Amount (US $ millions)
Common shares outstanding, beginning of period	81.7		$	1,280		86.4	$	1,350
Issuance of common shares upon exercise of options and DRIP	—		—			0.3	6
Reverse accrual for shares to be repurchased and/or cancelled in 2019	1.6		24			—	—
Shares repurchased in 2018 and cancelled in 2019	(0.2	)	(2		)	—	—
Shares repurchased and cancelled in 2019	(1.4	)	(22		)	—	—
Common shares outstanding, end of period	81.7		$	1,280		86.7	$	1,356

Normal Course Issuer Bid Program

In October 2018, the Company renewed its Normal Course Issuer Bid (NCIB) in accordance with Toronto Stock Exchange (TSX) rules. Under the NCIB, the Company may purchase up to 5,191,965 of its common shares, representing 10% of Norbord’s public float as of October 22, 2018, pursuant to TSX rules.

In December 2018, the Company entered into an automatic share purchase plan (ASPP) in order to facilitate the repurchase of its common shares under its NCIB during the regularly scheduled quarterly trading blackout period. During the first quarter of 2019, the Company repurchased and cancelled 1.4 million common shares under the ASPP for a total cost of $39 million. Of the total cost, $22 million represented a reduction in share capital and the remaining $17 million was charged to retained earnings. During the first quarter of 2019, 0.2 million shares purchased and accrued for in 2018 were also cancelled. Total cost relating to these shares was $4 million, of which $2 million represented a reduction in share capital and the remaining $2 million was charged to retained earnings. The Company has now exhausted the current NCIB limit.

Purchases were made on the open market by the Company through the facilities of the TSX, the NYSE or Canadian or US alternative trading systems, if eligible, in accordance with the requirements of the TSX and applicable securities laws. The price that the Company paid for any such common shares was the market price of such shares at the time of acquisition.

Dividend Reinvestment Plan (DRIP)

Year-to-date, no dividends were reinvested in common shares (2018 – less than $1 million).

Merger Reserve

On March 31, 2015, the Company and Ainsworth Lumber Co. Ltd. (Ainsworth) completed an arrangement under which the Company acquired all of the outstanding common shares of Ainsworth in an all-share transaction. The Company elected not to account for this transaction as a business combination under IFRS 3, Business Combinations, as the transaction represented a combination of entities under common control of Brookfield. Accordingly, the book values of the two entities were combined and no adjustments were made to reflect fair values or to recognize any new assets or liabilities of either entity.

The merger reserve represents the difference between the fair value of the Norbord common shares on the date of issuance as consideration and the book value of Ainsworth’s net assets exchanged.

Stock Options

Year-to-date, no stock options were granted (2018 – 0.2 million stock options) and stock option expense of less than $1 million was recorded with a corresponding increase in contributed surplus (2018 – less than $1 million).

Year-to-date, less than 0.1 million common shares (2018 – 0.3 million common shares) were issued as a result of options exercised under the stock option plan for total cash proceeds of less than $1 million (2018 – $4 million) in addition to less than $1 million (2018 – $1 million) representing the vested amount of stock options transferred from contributed surplus.

9

Exhibit 99.2

Accumulated Other Comprehensive Loss

(US $ millions)	Jul 6, 2019			Dec 31, 2018
Foreign currency translation loss on foreign operations, net of tax of $(3)  (December 31, 2018 – $(5))	$	(165	)	$	(159	)
Net loss on hedge of net investment in foreign operations, net of tax of $3 (December 31, 2018 – $3)	(8		)	(8		)
Actuarial loss on defined benefit pension obligations, net of tax of $11 (December 31, 2018 – $9)	(35		)	(30		)
Accumulated other comprehensive loss, net of tax	$	(208	)	$	(197	)

NOTE 9. 100 MILE HOUSE INDEFINITE CURTAILMENT ANNOUNCEMENT

In the fourth quarter of 2018, an impairment loss of $80 million was recorded with respect to the Company's mill in 100 Mile House, British Columbia reflecting the reduction in the annual allowable cut and the longer-term trend of high wood costs in the region. During the quarter, the Company announced a plan to indefinitely curtail this mill commencing in August 2019 as a result of the continued wood supply shortages and high wood prices. As a result, a $2 million charge has been recognized to provide for severance and related costs.

NOTE 10. INCOME TAX

Income tax recovery (expense) recognized in the statement of earnings comprises the following:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Current income tax recovery (expense)	$	21		$	(25	)	$	47		$	(58	)
Deferred income tax expense	(11		)	(28		)	(32		)	(31		)
	$	10		$	(53	)	$	15		$	(89	)

NOTE 11. (LOSS) EARNINGS PER COMMON SHARE

(US $ millions, except share and per share information, unless otherwise noted)	Q2 2019			Q2 2018		6 mos 2019			6 mos 2018
(Loss) earnings available to common shareholders	$	(14	)	$	174	$	(13	)	$	269
Common shares (millions):
Weighted average number of common shares outstanding	81.7			86.6		81.9			86.5
Dilutive stock options(1)	—			0.6		—			0.5
Diluted number of common shares	81.7			87.2		81.9			87.0
(Loss) earnings per common share:
Basic	$	(0.17	)	$	2.01	$	(0.16	)	$	3.11
Diluted	(0.17		)	2.00		(0.16		)	3.09

⁽¹⁾  Applicable if dilutive and when the weighted average daily closing share price for the period was greater than the exercise price for stock options. For the quarter and year-to-date period, there were 0.7 million stock options (quarter and year-to-date period ended June 30, 2018 – nil) that were not taken into account in the calculation of diluted earnings per share because their effect was anti-dilutive.

10

Exhibit 99.2

NOTE 12. SUPPLEMENTAL CASH FLOW INFORMATION

Other items comprise:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Stock-based compensation	$	1		$	1		$	2		$	2
Pension funding greater than expense	(1		)	(1		)	(2		)	(2		)
Cash interest paid (more) less than interest expense	(8		)	(8		)	1			—
Amortization of debt issue costs	—			—			1			1
Unrealized (gain) loss on outstanding currency forwards	(3		)	1			—			1
Unrealized foreign exchange loss (gain) on translation of monetary balances	—			—			4			(2		)
Other	—			2			1			2
	$	(11	)	$	(5	)	$	7		$	2

The net change in non-cash operating working capital balances comprises:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Cash provided by (used for):
Accounts receivable	$	37		$	(29	)	$	8		$	(43	)
Prepaids	(2		)	1			—			2
Inventory	25			12			(14		)	(24		)
Accounts payable and accrued liabilities	(21		)	35			(66		)	(9		)
	$	39		$	19		$	(72	)	$	(74	)

Cash interest and income taxes comprise:

(US $ millions)	Q2 2019		Q2 2018			6 mos 2019			6 mos 2018
Cash interest paid	$	19	$	17		$	20		$	17
Cash interest received	—		(1		)	(1		)	(1		)
Cash income taxes paid	16		28			66			101
Cash income taxes received	—		—			(15		)	(3		)

The net change in financial liabilities comprises:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019		6 mos 2018
Long-term debt	$	346		$	—		$	346	$	1
Other long-term debt	2			—			82		—
Accrued interest on long-term debt	(8		)	(8		)	2		(1		)
Costs on early extinguishment of 2020 Notes	9			—			9		—
Net increase (decrease) in financial liabilities	$	349		$	(8	)	$	439	$	—

11

Exhibit 99.2

Cash and non-cash movements in financial liabilities comprise:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Cash movements:
Interest paid	$	(19	)	$	(17	)	(20		)	(17		)
Issuance of debt	350			—			350			—
Debt issuance costs	(4		)	—			(4		)	—
Accounts receivable securitization drawings	2			—			82			—
	329			(17		)	408			(17		)
Non-cash movements:
Amortization of debt issue costs	—			—			1			1
Interest expense	12			9			22			16
Debt issuance costs	(2		)	—			(2		)	—
Costs on early extinguishment of 2020 Notes	10			—			10			—
	20			9			31			17
Net increase (decrease) in financial liabilities	$	349		$	(8	)	$	439		$	—

12

Exhibit 99.2

NOTE 13. FINANCIAL INSTRUMENTS

Non-Derivative Financial Instruments

The net book values and fair values of non-derivative financial instruments were as follows:

		Jul 6, 2019				Dec 31, 2018
(US $ millions)	Financial Instrument Category	Net Book Value		Fair Value		Net Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Fair value through profit or loss	$	315	$	315	$	128	$	128
Accounts receivable	Amortised cost	136		136		149		149
Other assets(2)	Amortised cost	1		1		1		1
		$	452	$	452	$	278	$	278
Financial liabilities:
Accounts payable and accrued liabilities	Amortised cost	$	220	$	220	$	293	$	293
Accrued early debt extinguishment costs	Amortised cost	9		9		—		—
Accrued liability under ASPP	Amortised cost	—		—		42		42
Long-term debt(1)	Amortised cost	905		936		555		556
Other long-term debt	Amortised cost	82		82		—		—
Other liabilities(2)	Amortised cost	12		12		12		12
		$	1,228	$	1,259	$	902	$	903

⁽¹⁾  Principal value of long-term debt excluding debt issue costs of $9 million (2018 – $5 million) (note 5).

⁽²⁾  Excludes lease obligations and defined benefit pension asset and obligations scoped out of IFRS 9, Financial instruments (note 6).

The carrying values of the Company's non-derivative financial instruments approximate fair value, except where disclosed below.

Derivative Financial Instruments

Canadian Dollar Monetary Hedge

At period-end, the Company had foreign currency forward contracts representing a notional amount of C $22 million (December 31, 2018 – C $143 million) in place to sell US dollars and buy Canadian dollars with maturities in July 2019. The fair value of these contracts at period-end is an unrealized loss of less than $1 million (December 31, 2018 – an unrealized loss of $3 million); the carrying value of the derivative instrument is equivalent to the unrealized loss at period-end. During the quarter, net realized losses on the Company's matured hedges were $1 million (2018 – net realized losses of $1 million). Year-to-date, net realized gains on the Company's matured hedges were less than $1 million (2018 – net realized losses of $1 million).

Euro Cash Flow Hedge

At period-end, the Company had foreign currency options representing a notional amount of €30 million (December 31, 2018 – €30 million) in place to buy Pounds Sterling and sell Euros with maturities between July to December 2019. The fair value of these contracts at period-end is an unrealized loss of less than $1 million (December 31, 2018 – unrealized gain of less than $1 million). During the quarter, net realized losses on the Company's matured hedges were less than $1 million (2018 – less than $1 million). Year-to-date, net realized losses on the Company's matured hedges were less than $1 million (2018 – less than $1 million).

Derivative instruments are measured at fair value as determined using valuation techniques under Level 2 of the fair value hierarchy. The fair values of over-the-counter derivative financial instruments are based on broker quotes or observable market rates. Those quotes are tested for reasonableness by discounting expected future cash flows using market interest and exchange rates for a similar instrument at the measurement date. Fair values reflect the credit risk of the instrument for the Company and counterparty when appropriate. Realized and unrealized gains and losses on derivative financial instruments are offset by realized and unrealized losses and gains on the underlying exposures being hedged and are recorded in earnings as they occur.

13

Exhibit 99.2

NOTE 14. COMMITMENTS AND CONTINGENCIES

The Company has provided certain guarantees, commitments and indemnifications, including those related to former businesses. The maximum amounts from many of these items cannot be reasonably estimated at this time. However, in certain circumstances, the Company has recourse against other parties to mitigate the risk of loss. In the normal course of its business activities, the Company is subject to claims and legal actions that may be made by its customers, suppliers and others. While the final outcome with respect to actions outstanding or pending as at period-end cannot be predicted with certainty, the Company believes the resolution will not have a material effect on the Company’s financial position, financial performance, or cash flows.

The Company has entered into various commitments as follows:

	Payments Due by Period
(US $ millions)	Less than 1 Year		1–5 Years		Thereafter		Total
Purchase commitments	$	37	$	47	$	45	$	129
Lease obligations	9		12		5		26
Reforestation obligations	1		2		1		4
	$	47	$	61	$	51	$	159

Purchase commitments relate to the purchase of property, plant and equipment and long-term purchase contracts with minimum fixed payment amounts.

NOTE 15. RELATED PARTY TRANSACTIONS

In the normal course of operations, Norbord enters into various transactions with related parties which have been measured at exchange value and recognized in the interim financial statements. The following transactions have occurred between Norbord and its related parties during the normal course of business.

Brookfield

Norbord periodically engages the services of Brookfield for various financial, real estate and other business services. During the quarter and year-to-date, the fees for services rendered were less than $1 million (2018 – less than $1 million).

Other

Sales to Asian markets are handled by Interex Forest Products Ltd. (Interex), a cooperative sales company over which Norbord, as a 25% shareholder, has significant influence. During the quarter, net sales of $17 million (2018 – $26 million) were made to Interex. Year-to-date, net sales of $35 million (2018 – $49 million) were made to Interex. At period-end, $5 million (December 31, 2018 – $2 million) due from Interex was included in accounts receivable. At period-end, the investment in Interex was less than $1 million (December 31, 2018 – less than $1 million) and is included in other assets.

14

Exhibit 99.2

NOTE 16. GEOGRAPHIC SEGMENTS

The Company operates principally in North America and Europe. Sales by geographic segment are determined based on the origin of shipment.

								Q2 2019
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	317	$	130	$	—		$	447
EBITDA(1)	15		21		(4		)	32
Depreciation and amortization	28		6		—			34
Additions to property, plant and equipment	19		10		—			29
								Q2 2018
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	577	$	130	$	—		$	707
EBITDA(1)	256		21		(5		)	272
Depreciation and amortization	30		6		—			36
Additions to property, plant and equipment	48		5		—			53
								6 mos 2019
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	647	$	276	$	—		$	923
EBITDA(1)	38		42		(7		)	73
Depreciation and amortization	56		13		—			69
Additions to property, plant and equipment	44		15		—			59
Property, plant and equipment	1,162		248		—			1,410
								6 mos 2018
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	1,025	$	258	$	—		$	1,283
EBITDA(1)	412		39		(10		)	441
Depreciation and amortization	55		11		—			66
Additions to property, plant and equipment	93		10		—			103
Property, plant and equipment(2)	1,159		243		—			1,402

⁽¹⁾  EBITDA is a non-IFRS financial measure, which the Company uses to assess segment performance and operating results. The Company defines EBITDA as earnings before finance costs, interest income, income tax, depreciation and amortization, and costs on early extinguishment of debt. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

⁽²⁾  Balance as at December 31, 2018.

15

EX-99.3

Exhibit 99.3

JULY 31, 2019

Management’s Discussion and Analysis

INTRODUCTION

This Management’s Discussion and Analysis (MD&A) provides a review of the significant developments that impacted Norbord’s performance during the period. The information in this section should be read in conjunction with the unaudited condensed consolidated interim financial statements (interim financial statements) for the period ended July 6, 2019 and the audited consolidated financial statements and annual MD&A in the 2018 annual report.

In this MD&A, “Norbord” or “the Company” means Norbord Inc. and all of its consolidated subsidiaries and affiliates, unless the context implies otherwise. “Brookfield” means Brookfield Asset Management Inc. or any of its consolidated subsidiaries and affiliates, a related party by virtue of holding a significant equity interest in the Company.

Annual financial data provided within has been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (the IASB) and interim financial data has been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting. Additional information on Norbord, including the Company’s annual information form and other documents publicly filed by the Company, is available on the Company’s website at www.norbord.com, the System for Electronic Document Analysis and Retrieval (SEDAR) administered by the Canadian Securities Administrators (the CSA) at www.sedar.com and on the Electronic Data Gathering, Analysis and Retrieval System (EDGAR) section of the US Securities and Exchange Commission (the SEC) website at www.sec.gov/edgar.shtml.

Some of the statements included or incorporated by reference in this MD&A constitute forward-looking statements within the meaning of applicable securities legislation. Forward-looking statements are based on various assumptions and are subject to various risks. See the cautionary statement contained in the Forward-Looking Statements section.

The Company has prepared this MD&A with reference to National Instrument 51-102 – Continuous Disclosure Obligations of the CSA. The Company is an eligible issuer under the Multijurisdictional Disclosure System (MJDS) and complies with the US reporting requirements by filing its Canadian disclosure documents with the SEC. As an MJDS issuer, the Company is permitted to prepare this MD&A in accordance with the disclosure requirements of the CSA, whose requirements are different from those of the SEC.

This MD&A provides financial and operating results for the three and six month periods ended July 6, 2019 and additional disclosure of material information up to and including July 31, 2019. All financial references in the MD&A are stated in US dollars unless otherwise noted.

In evaluating the Company’s business, management uses non-IFRS financial measures which, in management’s view, are important supplemental measures of the Company’s performance and believes that they are frequently used by investors, securities analysts and other interested persons in the evaluation of Norbord and other similar companies. In this MD&A, the following non-IFRS financial measures have been used: Adjusted EBITDA, Adjusted (loss) earnings, Adjusted (loss) earnings per share, cash provided by (used for) operating activities per share, operating working capital, total working capital, capital employed, return on capital employed (ROCE), return on equity (ROE), net debt, net debt for financial covenant purposes,

1

Exhibit 99.3

tangible net worth, net debt to capitalization, book basis, and net debt to capitalization, market basis. These non-IFRS financial measures are described in the Non-IFRS Financial Measures section. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies that may have different financing and capital structures and/or tax rates. Where appropriate, a quantitative reconciliation of the non-IFRS financial measure to the most directly comparable IFRS measure is also provided.

BUSINESS OVERVIEW & STRATEGY

Norbord is a leading global manufacturer of wood-based panels with 17 mills in the United States (US), Canada and Europe. Norbord is the largest global producer of oriented strand board (OSB) with annual capacity of 9.0 billion square feet (Bsf) (3⁄8-inch basis). In North America, Norbord owns 13 OSB mills located in the Southern region of the US, Western Canada, Quebec, Ontario and Minnesota. In Europe, the Company operates an OSB mill, two particleboard production facilities and one medium density fibreboard (MDF) production facility in the United Kingdom (UK) and one OSB mill in Belgium, and is the UK’s largest panel producer. The Company reports its operations in two geographic segments, North America and Europe, with 79% of its panel production capacity in North America and 21% in Europe.

Norbord’s business strategy is focused entirely on the wood-based panels sector – in particular OSB – in North America, Europe and Asia. Norbord’s financial goal is to achieve top-quartile ROCE among North American forest products companies over the business cycle. Over the past 15 years, Norbord's ROCE has averaged 24%.

Maintaining balance sheet flexibility is an important element of Norbord’s financing strategy. Management believes that its record of superior operational performance, disciplined capital allocation and prudent balance sheet management will enable it to access public and private capital markets (subject to financial market conditions). At July 6, 2019, Norbord had unutilized available liquidity of $551 million, comprising $315 million in cash and cash equivalents and $236 million in revolving bank lines. Pro forma for the early repayment of the 2020 notes (see below) and repayment of accounts receivable securitization drawings on July 17, 2019, the Company’s liquidity and cash would have been $302 million and $(16) million, respectively. The Company’s tangible net worth was $1,069 million and net debt to total capitalization on a book basis was 36%, with both ratios well within bank covenants.

SUMMARY

For the second quarter of 2019, the Company's results were negatively impacted by the continued pullback in US homebuilding activity which constrained North American OSB demand. Year-to-date, US housing starts were 4% behind the same period last year, with single family starts down similarly. North American benchmark OSB prices continue to be below the 15-year average, with the North Central price averaging $188 per thousand square feet (Msf) (7/16-inch basis) for the quarter, down 11% versus the previous quarter and 56% against the same quarter last year. Norbord’s second quarter North American shipments were up 1% versus the prior quarter, despite fewer fiscal days, due to seasonally higher demand but down 5% versus the same quarter last year, reflecting the slowdown in US homebuilding demand over the past three quarters.

The Company’s core European markets remained strong. Norbord’s European segment Adjusted EBITDA was unchanged versus both comparative quarters. Norbord's second quarter European shipments were down 9% versus the prior quarter primarily due to fewer fiscal days and seasonally lower demand but up 7% over the same quarter last year.

Norbord generated an operating loss of $2 million in the second quarter of 2019, down from operating income of $6 million in the prior quarter and $236 million in the same quarter last year. Year-to-date, Norbord generated operating income of $4 million versus $375 million in the same period last year. Norbord generated Adjusted EBITDA of $36 million in the second quarter of 2019 versus $42 million in the prior quarter and $273 million in the same quarter last year. Year-to-date, Norbord generated Adjusted EBITDA of $78 million versus $443 million in the same period last year. The decline against all comparative periods was primarily due to lower North American OSB prices.

2

Exhibit 99.3

The following table reconciles Adjusted EBITDA to the most directly comparable IFRS measure:

(US $ millions)	Q2 2019			Q1 2019			Q2 2018			6 mos 2019			6 mos 2018
(Loss) earnings	$	(14	)	$	1		$	174		$	(13	)	$	269
Add: Finance costs	12			11			10			23			18
Less: Interest income	—			(1		)	(1		)	(1		)	(1		)
Add: Costs on early extinguishment of 2020 Notes	10			—			—			10			—
Add: Depreciation and amortization	34			35			36			69			66
Add: Income tax (recovery) expense	(10		)	(5		)	53			(15		)	89
EBITDA	32			41			272			73			441
Add: Loss on disposal of assets	1			—			—			1			—
Add: Stock-based compensation and related costs	1			1			1			2			2
Add: Costs related to 100 Mile House indefinite  curtailment announcement	2			—			—			2			—
Adjusted EBITDA(1)	$	36		$	42		$	273		$	78		$	443

(1) Non-IFRS measure; see Non-IFRS Financial Measures section.

Norbord recorded a loss of $14 million ($0.17 per basic and diluted share) in the second quarter of 2019 versus earnings of $1 million ($0.01 per basic and diluted share) in the first quarter of 2019 and $174 million ($2.01 per basic share and $2.00 per diluted share) in the second quarter of 2018. Year-to-date, Norbord recorded a loss of $13 million ($0.16 per basic and diluted share) versus earnings of $269 million ($3.11 per basic share and $3.09 per diluted share) in the same period last year. Excluding the impact of non-recurring or other items and using a normalized Canadian statutory tax rate, Norbord recorded an Adjusted loss of $8 million ($0.10 per basic and diluted share) in the second quarter of 2019, compared to an Adjusted loss of $2 million ($0.02 per basic and diluted share) in the first quarter of 2019 and Adjusted earnings of $167 million ($1.93 per basic share and $1.92 per diluted share) in the second quarter of 2018. Year-to-date, Norbord recorded an Adjusted loss of $10 million ($0.12 per basic and diluted share) versus Adjusted earnings of $263 million ($3.04 per basic share and $3.02 diluted share) in the same period last year. The fluctuations in Adjusted (loss) earnings versus all comparative periods were driven primarily by the fluctuations in Adjusted EBITDA, as discussed above.

The following table reconciles Adjusted (loss) earnings to the most directly comparable IFRS measure:

(US $ millions)	Q2 2019			Q1 2019			Q2 2018			6 mos 2019			6 mos 2018
(Loss) earnings	$	(14	)	$	1		$	174		$	(13	)	$	269
Add: Loss on disposal of assets	1			—			—			1			—
Add: Stock-based compensation and related costs	1			1			1			2			2
Add: Costs on early extinguishment of 2020 Notes	10			—			—			10			—
Add: Costs related to 100 Mile House indefinite  curtailment announcement	2			—			—			2			—
Add: Reported income tax (recovery) expense	(10		)	(5		)	53			(15		)	89
Adjusted pre-tax (loss) earnings	(10		)	(3		)	228			(13		)	360
Less: Income tax recovery (expense) at statutory rate(1)	2			1			(61		)	3			(97		)
Adjusted (loss) earnings(2)	$	(8	)	$	(2	)	$	167		$	(10	)	$	263

(1) Represents Canadian combined federal and provincial statutory rate.

(2) Non-IFRS measure; see Non-IFRS Financial Measures section.

Home construction activity, particularly in the US, influences OSB demand and pricing. Fluctuations in North American OSB demand and prices significantly affect Norbord’s results given 79% of the Company’s panel production capacity is located in North America. For the last four quarters, approximately 55% of Norbord’s North American OSB sales volume went into the new home construction sector, approximately 25% went into specialty applications (which include industrial and export markets), and approximately 20% went into repair-and-remodelling. Management believes this diversification provides

3

Exhibit 99.3

opportunities to maximize profitability while limiting the Company’s relative exposure to the new home construction segment during periods of soft housing activity.

The long-term fundamentals, such as new household formation and replacement of housing stock, underpin demand for new homes in the US, the largest market for the Company’s products. Norbord’s European operations and Asian exports are exposed to different market dynamics relative to North America and this has provided meaningful market and geographic diversification for the Company. Combined with Norbord’s strong financial liquidity and solid customer partnerships, the Company believes it is well positioned to benefit from growing demand in its core North American, European and Asian markets.

On the input cost side, fluctuations in raw material input prices significantly impact operating costs. Wood fibre, resin, wax and energy account for approximately 60% of Norbord's OSB cash production costs. The prices for these commodities are determined by economic and market conditions. Resin used in the OSB manufacturing process is a petrochemical product, and therefore its price typically follows global oil prices. Global resin prices had generally been trending higher since the third quarter of 2016 but decreased modestly in the second quarter of 2019. Norbord continues to pursue aggressive Margin Improvement Program (MIP) initiatives to reduce raw material usages and improve productivity to offset potentially higher uncontrollable costs.

4

Exhibit 99.3

SUMMARY OF FINANCIAL AND OPERATING HIGHLIGHTS

(US $ millions, except per share information, unless otherwise noted)	Q2 2019		Q1 2019		Q2 2018		6 mos 2019		6 mos 2018
SALES AND EARNINGS
Sales	447		476		707		923		1,283
Operating (loss) income	(2)		6		236		4		375
Adjusted EBITDA(1)	36		42		273		78		443
(Loss) earnings	(14)		1		174		(13)		269
Adjusted (loss) earnings(1)	(8)		(2)		167		(10)		263
PER COMMON SHARE EARNINGS
(Loss) earnings, basic	(0.17)		0.01		2.01		(0.16)		3.11
(Loss) earnings, diluted	(0.17)		0.01		2.00		(0.16)		3.09
Adjusted (loss) earnings, basic(1)	(0.10)		(0.02)		1.93		(0.12)		3.04
Adjusted (loss) earnings, diluted(1)	(0.10)		(0.02)		1.92		(0.12)		3.02
Dividends declared(2)	0.40		0.40		0.60		0.80		1.20
BALANCE SHEET
Total assets	2,207		1,942		2,250
Long-term debt(3)	896		550		549
Net debt for financial covenant purposes(1)	601		564		276
Net debt to capitalization, market basis(1)	20	%	17	%	8	%
Net debt to capitalization, book basis(1)	36	%	34	%	16	%
KEY STATISTICS
Shipments (MMsf–3/8”)
North America	1,587		1,569		1,674		3,156		3,195
Europe	474		521		445		995		906
Indicative average OSB price ($/Msf–7/16”, unless otherwise indicated)
North Central	188		211		426		200		398
South East	186		197		419		192		375
Western Canada	153		160		403		156		381
Europe (€/m3)(4)	285		287		298		286		286
KEY PERFORMANCE METRICS
Return on capital employed (ROCE)(1)	9	%	10	%	65	%	10	%	55	%
Return on equity (ROE)(1)	(4	)%	(1	)%	58	%	(2	)%	48	%
Cash provided by (used for) operating activities	36		(97)		250		(61)		254
Cash provided by (used for) operating activities per share(1)	0.44		(1.18)		2.89		(0.74)		2.94

(1) Non-IFRS measure; see Non-IFRS Financial Measures section.

(2) Dividends declared per share stated in Canadian dollars.

(3) Includes current and non-current long-term debt.

(4) European indicative average OSB price represents the gross delivered price to the largest continental market.

Sales

Total sales in the quarter were $447 million, compared to $476 million in the first quarter of 2019 and $707 million in the second quarter of 2018. Quarter-over-quarter, total sales decreased by $29 million or 6%. In North America, sales decreased by 4% due to lower OSB prices partially offset by a 1% increase in shipment volumes. In Europe, sales decreased by 11% primarily due to a 9% decrease in shipment volumes. Year-over-year, total sales decreased by $260 million or 37%. In North America, sales decreased by 45% due to significantly lower OSB prices and a 5% decrease in shipment volumes. In Europe, sales were unchanged as a 7% increase in shipment volumes was offset by the foreign exchange translation impact of a weaker Pound Sterling relative to the US dollar.

5

Exhibit 99.3

Year-to-date, total sales were $923 million, compared to $1,283 million in the same period last year, a decrease of $360 million or 28%. In North America, sales decreased by 37% due to significantly lower OSB prices and a 1% decrease in shipment volumes due to the continued pullback in OSB demand. In Europe, sales increased by 7% due to a 10% increase in shipment volumes and higher average panel prices, partially offset by the foreign exchange translation impact of a weaker Pound Sterling relative to the US dollar.

Markets

In North America, US housing demand continued to be negatively impacted by affordability concerns and record rainfall across the US which constrained homebuilding activity in the past three quarters. Year-to-date US housing starts were down 4% versus the same period in 2018, with single-family starts (which use approximately three times more OSB than multi-family) decreasing by 5%. The June seasonally adjusted annualized rate was 1.25 million starts, which is 6% higher than the pace at this time last year, while the pace of housing permits (the more forward-looking indicator) was 1.22 million. The consensus forecast from US housing economists is approximately 1.25 million starts for 2019, which is unchanged versus last year. Despite the significant improvement in new home construction since the low of 0.55 million in 2009, US housing starts still remain below the long-term annual average of 1.5 million.

North American benchmark OSB prices in all regions weakened due to the continued pullback in demand from homebuilding. As a result, average benchmark prices were lower than both the prior quarter and the same quarter last year. The table below summarizes average benchmark OSB prices by region for the relevant quarters:

North American Region	% of Norbord’s Estimated Annual Operating Capacity(1)		Q2 2019 ($/Msf-7/16”)		Q1 2019 ($/Msf-7/16”)		Q2 2018 ($/Msf-7/16”)
North Central	15	%	$	188	$	211	$	426
South East	36	%	186		197		419
Western Canada	29	%	153		160		403

(1) Based on the restated annual capacity figures as at December 31, 2018 and exclude the indefinitely curtailed Chambord, Quebec mill, which represents 7% of estimated annual capacity.

In Europe, panel markets remained strong in the second quarter of 2019, driven by continued OSB demand growth in Norbord's core geographies. In local currency terms, average panel prices were in line with both comparative quarters with the exception of Germany, where prices decreased modestly due to a macro slowdown in industrial production.

Historically, the UK has been a net importer of panel products and Norbord is the largest domestic producer. A weaker Pound Sterling relative to the Euro is advantageous to Norbord’s primarily UK-based operations as it improves sales opportunities within the UK and supports Norbord’s export program into the continent. During the second quarter of 2019, the Pound Sterling averaged 1.14 against the Euro, compared to 1.15 in the prior quarter and 1.14 in the same quarter last year.

Operating Results

Adjusted EBITDA(1) (US $ millions)	Q2 2019			Q1 2019			Q2 2018			6 mos 2019			6 mos 2018
North America	$	18		$	23		$	256		$	41		$	412
Europe	21			21			21			42			39
Unallocated	(3		)	(2		)	(4		)	(5		)	(8		)
Total	$	36		$	42		$	273		$	78		$	443

(1) Non-IFRS measure; see Non-IFRS Financial Measures section.

Norbord generated Adjusted EBITDA of $36 million in the second quarter of 2019, compared to $42 million in the first quarter of 2019 and $273 million in the second quarter of 2018. Year-to-date, Norbord generated Adjusted EBITDA of $78 million

6

Exhibit 99.3

compared to $443 million in the same period last year. The decreases versus all comparative periods were primarily driven by lower North American OSB prices.

Adjusted EBITDA Variance

The components of the Adjusted EBITDA change are summarized in the variance table below:

(US $ millions)	Q2 2019 vs.  Q1 2019			Q2 2019 vs.  Q2 2018			6 mos 2019 vs.  6 mos 2018
Adjusted EBITDA – current period	$	36		$	36		$	78
Adjusted EBITDA – comparative period	42			273			443
Variance	(6		)	(237		)	(365		)
Mill nets(1)	(19		)	(231		)	(357		)
Volume(2)	(4		)	(17		)	(7		)
Key input prices(3)	8			3			(7		)
Key input usage(3)	3			(2		)	(2		)
Mill profit share and bonus	3			12			17
Other operating costs and foreign exchange(4)	3			(2		)	(9		)
Total	$	(6	)	$	(237	)	$	(365	)

(1) The mill nets variance represents the estimated impact of changes in realized pricing across all products. Mill nets are calculated as sales (net of outbound freight costs) divided by shipment volumes.

(2) The volume variance represents the impact of shipment volume changes across all products.

(3) The key inputs include fibre, resin, wax and energy.

(4) The other operating costs and foreign exchange category covers all remaining variances including labour and benefits, maintenance, costs to ramp up the new Inverness, Scotland line, and the one-time impact of adopting the new lease standard in 2019 (see Changes in Accounting Policies).

North America

Norbord’s North American operations generated $18 million in Adjusted EBITDA in the second quarter of 2019, a decrease of $5 million from $23 million in the first quarter of 2019 and a decrease of $238 million from $256 million in the second quarter of 2018. Year-to-date, North American operations generated $41 million in Adjusted EBITDA, a decrease of $371 million from $412 million in the same period last year. The quarter-over-quarter decrease was primarily due to lower OSB prices partially offset by lower costs related to annual maintenance shuts and other downtime, improved productivity and raw material usages, and lower resin prices. The year-over-year and year-to-date decreases were primarily attributed to significantly lower OSB prices, as well as the timing of annual maintenance shuts and other downtime, partially offset by lower mill profit share costs attributed to lower earnings, lower resin prices and the benefit of a weaker Canadian dollar relative to the US dollar.

Norbord’s North American OSB cash production costs per unit (excluding mill profit share and freight costs) decreased by 6% compared to the first quarter of 2019, were flat compared to the second quarter of 2018 and increased 2% year-to-date. Quarter-over-quarter, unit costs decreased primarily due to lower costs related to annual maintenance shuts and other downtime, as well as improved productivity and raw material usages, and lower resin prices. Year-over-year, unit costs were in-line as the negative impact of higher annual maintenance shuts and other downtime was offset by lower resin prices and the benefit of a weaker Canadian dollar relative to the US dollar. Year-to-date, unit costs increased as the timing of annual maintenance shuts and other downtime was only partially offset by lower resin prices and the benefit of a weaker Canadian dollar relative to the US dollar.

Production has remained indefinitely suspended at the Chambord, Quebec mill since the third quarter of 2008. In 2018, the Board of Directors approved a $71 million investment to rebuild and prepare the mill for an eventual restart when warranted by customer demand (see Chambord Rebuild Project). A restart decision has not yet been made, and Norbord will continue to monitor market conditions. This mill represents 7% of Norbord’s current annual estimated capacity in North America.

Excluding the Chambord mill, Norbord’s operating mills produced at 88% of stated capacity in the second quarter of 2019 compared to 85% in the first quarter of 2019 and 98% in the second quarter of 2018. Capacity utilization changes based on

7

Exhibit 99.3

fiscal days in each period were due to the timing of annual maintenance shuts and other downtime. In addition, a portion of the year-over-year decrease was driven by the December 31, 2018 restatement of annual production capacities at a number of mills (to reflect higher production line speeds from converting to PMDI resin technology and subsequent capital invested over the past six years to debottleneck certain mills).

100 Mile House Indefinite Curtailment Announcement

On June 11, 2019, the Company announced the indefinite curtailment of its 100 Mile House, British Columbia mill starting in August 2019 as it is no longer economically viable to continue to operate the mill. The region where the mill operates has been under mounting wood supply pressure for the past decade as a result of the mountain pine beetle epidemic. This challenge has been further exacerbated by the significant wildfires that the province of British Columbia experienced in the summers of 2017 and 2018. As a result of this announcement, a net charge of $2 million has been recognized in the quarter to provide for severance and related costs. The 100 Mile House mill has a stated annual production capacity of 440 million square feet (3/8-inch basis), or 6% of the Company’s North American stated annual capacity. The Company will continue to supply its current customers and meet expected future customer demand from its 11 other operating North American OSB mills, including export products for the Japanese market from its High Level and Grande Prairie, Alberta mills.

High Level Temporary Production Suspensions

On May 21, 2019, the Company announced that its mill in High Level, Alberta had temporarily suspended production due to wildfires burning nearby in the region and in order to comply with evacuation orders. The mill resumed operation approximately two weeks later after the evacuation orders had been lifted. Subsequently on June 18, 2019, the Company announced another suspension of production to comply with an evacuation order. The mill resumed normal operation less than a week later after the evacuation order had been lifted. Although the wildfires impacted the mill’s production, the curtailment did not materially impact Norbord’s second quarter financial results. The High Level mill has a stated annual production capacity of 860 million square feet (3/8-inch basis), or 11% of the Company’s North American stated annual capacity.

Europe

Norbord’s European operations generated $21 million in Adjusted EBITDA in the second quarter of 2019, unchanged versus both comparative periods. Year-to-date, European operations generated $42 million in Adjusted EBITDA compared to $39 million in the same period last year. Quarter-over-quarter, lower shipment volumes were offset by lower resin and energy prices, and lower maintenance costs. Year-over-year, higher shipment volumes were offset by higher fibre prices and the foreign exchange translation impact of a weaker Pound Sterling relative to the US dollar. Year-to-date, higher shipment volumes and average panel prices, as well as improved productivity were only partially offset by higher fibre prices and the foreign exchange translation impact of a weaker Pound Sterling relative to the US dollar.

The European mills produced at 91% of stated capacity in the second quarter of 2019, compared to 89% in the first quarter of 2019 and second quarter of 2018. Capacity utilization was higher versus both comparative periods due to the continued ramp-up of the reinvested Inverness, Scotland mill following its start-up in the fourth quarter of 2017.

Margin Improvement Program (MIP)

Year-to-date, the Company did not generate any net MIP gains as improved productivity and lower raw material usage at the restarted Huguley, Alabama and expanded Inverness, Scotland mills were offset by the timing of annual maintenance shuts and other downtime, as well as the operating impact of adverse weather to date. MIP is measured relative to the prior year at constant prices and exchange rates.

8

Exhibit 99.3

FINANCE COSTS, DEPRECIATION AND AMORTIZATION, AND INCOME TAX

(US $ millions)	Q2 2019			Q1 2019			Q2 2018			6 mos 2019			6 mos 2018
Finance costs	$	(12	)	$	(11	)	$	(10	)	$	(23	)	$	(18	)
Interest income	—			1			1			1			1
Depreciation and amortization	(34		)	(35		)	(36		)	(69		)	(66		)
Income tax recovery (expense)	10			5			(53		)	15			(89		)

Finance Costs

Finance costs in the second quarter of 2019 and the first six months of 2019 were higher against all comparative periods due to the additional interest expense on the newly issued 2027 notes (see below) and the utilization charges on drawings under the accounts receivable securitization program to-date in 2019 (see Accounts Receivable Securitization).

Depreciation and Amortization

The Company uses the units-of-production method to depreciate its production equipment. Fluctuations in depreciation expense reflect relative changes in production levels by mill and the higher level of investment in production equipment in recent years. Depreciation for the current quarter and the first six months of 2019 was also impacted by depreciation of lease assets recognized upon adoption of the new lease standard (see Changes in Accounting Policies).

Income Tax

A tax recovery of $10 million was recorded in the second quarter of 2019 on a pre-tax loss of $24 million. The effective tax rate differs from the Canadian statutory rate principally due to rate differences on foreign activities, fluctuations in relative currency values and the recognition of certain non-recurring income tax recoveries.

LIQUIDITY AND CAPITAL RESOURCES

(US $ millions, except per share information, unless otherwise noted)	Q2 2019		Q1 2019		Q2 2018		6 mos 2019	6 mos 2018
Cash provided by (used for) operating activities	$ 36		(97)		250		(61)	254
Cash provided by (used for) operating activities per share(1)	0.44		(1.18)		2.89		(0.74)	2.94
Operating working capital(1)	162		183		212
Total working capital(1)	548		217		481
Additions to property, plant and equipment and    intangible assets	30		30		54		60	104
Net debt to capitalization, market basis(1)	20	%	17	%	8	%
Net debt to capitalization, book basis(1)	36	%	34	%	16	%

(1) Non-IFRS measure; see Non-IFRS Financial Measures section.

At quarter-end, the Company had unutilized available liquidity of $551 million, comprising $315 million in cash and cash equivalents and $236 million in revolving bank lines, which the Company believes is sufficient to fund expected short-term cash requirements. Pro forma for the early repayment of the 2020 notes (see below) and repayment of accounts receivable securitization drawings on July 17, 2019, the Company’s liquidity and cash would have been $302 million and $(16) million, respectively.

Senior Secured Notes Due 2027

In June 2019, the Company completed the issuance of $350 million in senior secured notes due July 2027 with an interest rate of 5.75%. Debt issue costs of $6 million were incurred with the issuance. Subsequent to quarter-end, the Company used a portion of the proceeds to redeem, prior to maturity, the $240 million senior secured notes due December 2020. A premium of $9 million was paid on the early redemption and a $1 million non-cash charge related to net unamortized debt issue costs was recognized. The 2027 notes rank pari passu with the Company’s existing senior secured notes due in 2023 and committed revolving bank lines.

9

Exhibit 99.3

Senior Secured Notes Due 2023

The Company’s $315 million senior secured notes due April 2023 bear an interest rate of 6.25%.

Revolving Bank Lines

The Company has an aggregate commitment of $245 million under committed revolving bank lines which bear interest at money market rates plus a margin that varies with the Company’s credit rating.  The maturity date of the total aggregate commitment is May 2021. The bank lines are secured by a first lien on the Company’s North American OSB inventory and property, plant and equipment. This lien is shared pari passu with the holders of the 2023 and 2027 senior secured notes.

The bank lines contain two quarterly financial covenants: minimum tangible net worth of $500 million and maximum net debt to total capitalization, book basis, of 65%. For the purposes of the tangible net worth calculation, the following adjustments have been made as at period-end:

● the IFRS transitional adjustments to shareholders’ equity of $21 million at January 1, 2011 are added back;

● changes to other comprehensive income subsequent to January 1, 2011 are excluded;

● impairment of assets charge for 2018 is excluded;

● intangible assets (other than timber rights and software acquisition and development costs) are excluded; and

● the impact of the change in functional currency of Ainsworth on shareholders’ equity of $155 million is excluded.

Net debt for financial covenant purposes includes total debt, principal amount excluding any drawings on the accounts receivable securitization program, less cash and cash equivalents, plus other liabilities classified as debt for financial covenant purposes, letters of credit and guarantees issued, and any bank advances. At period-end, the Company’s tangible net worth was $1,069 million and net debt for financial covenant purposes was $601 million. Net debt to total capitalization, book basis, was 36%. The Company was in compliance with the financial covenants at period-end.

Norbord’s capital structure at period-end consisted of the following:

(US $ millions)	Jul 6, 2019			Dec 31, 2018
Long-term debt, principal value	$	905		$	555
Add: Other long-term debt	82			—
Less: Cash and cash equivalents	(315		)	(128		)
Net debt	672			427
Less: Other long-term debt	(82		)	—
Add: Other liabilities classified as debt for financial covenant purposes	2			—
Add: Letters of credit and guarantees	9			8
Net debt for financial covenant purposes	$	601		$	435
Shareholders’ equity	$	749		$	823
Add: Impairment of assets (net of tax)	59			59
Add: Other comprehensive income change(1)	85			74
Add: Impact of Ainsworth changing functional currencies	155			155
Add: IFRS transitional adjustments	21			21
Tangible net worth for financial covenant purposes	$	1,069		$	1,132
Total capitalization	$	1,670		$	1,567
Net debt to capitalization, market basis	20		%	13		%
Net debt to capitalization, book basis	36		%	28		%

(1) Cumulative subsequent to January 1, 2011.

10

Exhibit 99.3

Accounts Receivable Securitization

The Company has the ability to draw up to $125 million under a multi-currency accounts receivable securitization program with a third-party trust sponsored by a highly rated Canadian financial institution. The program is revolving and has an evergreen commitment subject to termination on 12 months’ notice. Under the program, the Company has transferred substantially all of its present and future trade accounts receivable to the trust on a fully serviced basis for proceeds consisting of cash and deferred purchase price. However, the asset derecognition criteria under IFRS have not been met and the transferred accounts receivable remain recorded as an asset.

At period-end, the Company had transferred but continued to recognize $117 million in trade accounts receivable, and recorded drawings of $82 million as other long-term debt relating to this financing program. The level of accounts receivable transferred under the program fluctuates with the level of shipment volumes, product prices and foreign exchange rates. The amount the Company is able to draw under the program at any point in time depends on the level of accounts receivable transferred, concentration limits and credit enhancement ratios. At period-end, the maximum available drawings under the program were $82 million at that time. The amount the Company chooses to draw under the program will fluctuate with the Company’s cash requirements at that point in time. Any drawings are presented as other long-term debt on the balance sheet and are excluded from the net debt to capitalization calculation for financial covenant purposes. The utilization charge, which is based on money market rates plus a margin, and other program fees are recorded as finance costs. Year-to-date, the utilization charges on drawings ranged from 1.6% to 4.0% (2018 - no utilization charges).

The securitization program contains no financial covenants. However, the program is subject to minimum credit rating requirements. The Company must maintain a long-term issuer credit rating of at least single B(mid) or the equivalent. As at July 31, 2019, the Company's ratings were BB (Standard & Poor’s Ratings Services) and Ba1 (Moody’s Investors Service).

Other Liquidity and Capital Resources

Operating working capital, consisting of accounts receivable, inventory and prepaids less accounts payable and accrued liabilities, was $162 million at period-end, compared to $183 million at April 6, 2019 and $212 million at June 30, 2018. The Company aims to minimize the amount of capital held as operating working capital and continues to manage it at minimal levels.

Quarter-over-quarter, operating working capital decreased by $21 million due to lower accounts receivable and inventory, partially offset by lower accounts payable and accrued liabilities. Lower accounts receivable was due to lower OSB prices and the timing of collections. Lower inventory was primarily due to the seasonal draw-down of log inventory in the northern mills in North America. Lower accounts payable and accrued liabilities were primarily due to the timing of payments and lower accrued capital expenditures.

Year-over-year, operating working capital decreased by $50 million due to lower accounts receivable and inventory, partially offset by lower accounts payable and accrued liabilities. Lower accounts receivable was primarily attributed to lower North American OSB prices and the timing of collections. Lower inventory was primarily attributed to higher annual maintenance shuts and other downtime in the current quarter. Lower accounts payable and accrued liabilities were primarily attributed to lower compensation accruals and accrued capital expenditures and the timing of payments partially offset by new lease liabilities recognized upon transition to the new lease standard (see Changes in Accounting Policies).

Total working capital, which includes operating working capital plus cash and cash equivalents and taxes receivable less bank advances and taxes payable, was $548 million at period-end, compared to $217 million at April 6, 2019 and $481 million at June 30, 2018. The increase versus both comparative periods was primarily due to the higher cash balance from the bond issuance during the quarter and higher taxes receivable, partially offset by the lower operating working capital.

Operating activities generated $36 million of cash or $0.44 per share in second quarter of 2019, compared to $97 million or $1.18 per share consumed in the first quarter of 2019 and $250 million or $2.89 per share generated in the second quarter of

11

Exhibit 99.3

2018. The higher generation of cash versus the prior quarter was mainly attributed to seasonal investment in operating working capital in the first quarter of 2019. The lower generation of cash versus the same quarter last year was mainly attributed to lower earnings in the current quarter, partially offset by lower income tax instalments paid in the current quarter.

INVESTMENTS

Investment in property, plant and equipment and intangible assets was $30 million in both the second and first quarters of 2019 and $54 million in the second quarter of 2018. The decrease versus the prior year quarter was primarily attributable to the timing of executing on various capital projects.

Norbord's 2019 investment in property, plant and equipment is expected to be $150 million for maintenance of business projects and projects focused on reducing manufacturing costs across the mills, as well as a portion of the Chambord mill rebuild and Inverness phase 2 projects (both described below). It also includes investments to support the Company's strategy to increase the production of specialty products for industrial applications and exports. These investments will be funded with cash on hand, cash generated from operations and, if necessary, drawings under the Company’s accounts receivable securitization program or committed revolving bank lines.

Inverness Project

During the first phase of the project, the Company invested $147 million to modernize and expand its Inverness OSB mill, including moving the unused second press from the Grande Prairie mill. The project was substantially completed and the new line started up in the fourth quarter of 2017, with no disruption to existing production capacity, and the mill's stated capacity was increased from 395 to 720 MMsf (3/8-inch basis). The new finishing end was installed in 2018 and commissioned during the first quarter of 2019.

In January 2019, the Board of Directors approved a $46 million (£35 million) second phase investment to further expand capacity at the Inverness mill by 225 MMsf (3/8-inch basis) (200,000 cubic metres) through the addition of a second wood room and dryer. This project is expected to take approximately two years to complete and is consistent with the Company's strategy of growing its European OSB capacity to serve rapid consumption growth in its key markets. During the first six months of 2019, $9 million was invested.

Chambord Rebuild Project

Production has remained suspended at the Chambord mill since the third quarter of 2008. The Company believes North American OSB demand will continue to grow over the long-term. In order to support this anticipated growth and enhance the competitive position of the Company's overall manufacturing operations, Norbord is investing $71 million to rebuild and prepare the mill for an eventual restart. The Company has not yet made a restart decision, however, and will only do so when it is sufficiently clear that customers require more product. The project involves replacing the dryers and investing in the wood-handling and finishing end areas to streamline the mill’s manufacturing process and reduce costs, as well as upgrades to process and personal safety systems, electrical systems and environmental equipment that will bring the mill up to current standards after a decade of curtailment. The government of Quebec is investing up to C $4.8 million (US $3.6 million) in the project. Further, the Company’s investment will qualify for Canadian investment tax credits and Quebec’s rebate program for large electricity users which will reduce cash income taxes and electricity costs, respectively, once the mill is operational. During the first six months of 2019, $13 million was invested ($40 million project-to-date).

CAPITALIZATION

At July 31, 2019, there were 81.7 million common shares outstanding. In addition, 1.5 million stock options were outstanding, of which 53% were fully vested.

Normal Course Issuer Bid

In October 2018, Norbord renewed its normal course issuer bid (NCIB) in accordance with TSX rules. Under the bid, Norbord purchased 5,191,965 common shares at a cost of $141 million, representing 10% of the Company’s public float of 51,919,654

12

Exhibit 99.3

common shares as of October 22, 2018 (a total of 86,387,210 common shares were issued and outstanding as of such date) and has exhausted the bid limit. Common shares purchased under the bid were cancelled.

Norbord believed that the market price of its common shares was attractive as they were trading significantly below replacement cost and management's view of intrinsic value and that the purchase of these common shares was an appropriate use of the Company’s funds in light of potential benefits to remaining shareholders.

Purchases were made on the open market by Norbord through the facilities of the TSX, the NYSE or Canadian or US alternative trading systems, if eligible, in accordance with the requirements of the TSX and applicable securities laws. The price that Norbord paid for any such common shares was the market price of such shares at the time of acquisition.

Dividends

Norbord’s variable dividend policy targets the payment to shareholders of a portion of free cash flow based upon the Company’s financial position, results of operations, cash flow, capital requirements and restrictions under the Company’s revolving bank lines, as well as the market outlook for the Company’s principal products and broader market and economic conditions, among other factors. Under this policy, the Board of Directors has declared the following dividends:

(C $)	Quarterly Dividend Declared per Common Share
Q2 2013 to Q4 2014	$ 0.60
Q1 2015 & Q2 2015	0.25
Q3 2015 to Q1 2017	0.10
Q2 2017	0.30
Q3 2017	0.50
Q4 2017 to Q2 2018	0.60
Q3 2018	4.50
Q4 2018	0.60
Q1 2019 to Q2 2019	0.40

The Board retains the discretion to amend the Company’s dividend policy in any manner and at any time as it may deem necessary or appropriate in the future. For these reasons, as well as others, the Board in its sole discretion can decide to increase, maintain, decrease, suspend or discontinue the payment of cash dividends in the future.

Under Norbord's variable dividend policy, $49 million (2018 – $81 million) was paid out during the first six months of 2019 using cash on hand.

FINANCIAL INSTRUMENTS

The Company utilizes various derivative financial instruments to manage risk and make better use of capital. The fair values of these instruments are reflected on the Company's balance sheet and are disclosed in note 13 to the interim financial statements.

TRANSACTIONS WITH RELATED PARTIES

In the normal course of operations, the Company enters into various transactions with related parties which have been measured at exchange value and recognized in the interim financial statements. The following transactions have occurred between the Company and its related parties during the quarter:

Brookfield

As of July 31, 2019, Brookfield held approximately 43% of the common shares outstanding. The Company periodically engages the services of Brookfield for various financial, real estate and other business services. Year-to-date, the fees for services rendered were less than $1 million (2018 – less than $1 million).

13

Exhibit 99.3

Other

Sales to Asian markets are handled by Interex Forest Products Ltd. (Interex), a cooperative sales company over which Norbord, as a 25% shareholder, has significant influence. During the quarter and year-to-date, net sales of $17 million (2018 – $26 million) and $35 million (2018 - $49 million), respectively, were made to Interex. At period-end, $5 million (December 31, 2018 – $2 million) due from Interex was included in accounts receivable. At period-end, the investment in Interex was less than $1 million (December 31, 2018 – less than $1 million).

14

Exhibit 99.3

SELECTED QUARTERLY INFORMATION

			2019								2018				2017
(US $ millions, except per share information, unless otherwise noted)	Q2		Q1		Q4		Q3		Q2		Q1		Q4		Q3
SALES AND EARNINGS
Sales	447		476		501		640		707		576		596		578
Operating (loss) income	(2	)	6		(46	)	175		236		139		172		169
Adjusted EBITDA(1)	36		42		70		211		273		170		204		200
(Loss) earnings	(14	)	1		(28	)	130		174		95		160		130
Adjusted (loss) earnings(1)	(8	)	(2	)	26		123		167		96		123		121
PER COMMON SHARE EARNINGS
(Loss) earnings, basic	(0.17	)	0.01		(0.32	)	1.50		2.01		1.10		1.85		1.51
(Loss) earnings, diluted	(0.17	)	0.01		(0.32	)	1.49		2.00		1.09		1.84		1.50
Adjusted (loss) earnings, basic(1)	(0.10	)	(0.02	)	0.30		1.42		1.93		1.11		1.42		1.40
Adjusted (loss) earnings, diluted(1)	(0.10	)	(0.02	)	0.30		1.41		1.92		1.10		1.41		1.39
Dividends declared(2)	0.40		0.40		0.60		4.50		0.60		0.60		0.60		0.50
BALANCE SHEET
Total assets	2,207		1,942		1,942		2,130		2,250		2,097		2,103		1,951
Long-term debt(3)	896		550		550		549		549		549		548		548
Net debt for financial covenant purposes(1)	601		564		435		377		276		422		333		449
Net debt to capitalization, market basis(1)	20	%	17	%	13	%	10	%	8	%	13	%	11	%	15	%
Net debt to capitalization, book basis(1)	36	%	34	%	28	%	23	%	16	%	24	%	21	%	28	%
KEY STATISTICS
Shipments (MMsf–3/8”)
North America	1,587		1,569		1,602		1,687		1,674		1,521		1,562		1,537
Europe	474		521		452		467		445		461		440		474
Indicative average OSB price ($/Msf–7/16”, unless otherwise indicated)
North Central	188		211		243		363		426		370		379		409
South East	186		197		203		305		419		331		355		354
Western Canada	153		160		184		281		403		359		328		388
Europe (€/m3)(4)	285		287		299		305		298		274		262		233
KEY PERFORMANCE METRICS
Return on capital employed (ROCE)(1)	9	%	10	%	17	%	51	%	65	%	42	%	52	%	52	%
Return on equity (ROE)(1)	(4	)%	(1	)%	10	%	44	%	58	%	37	%	51	%	58	%
Cash provided by (used for) operating activities	36		(97	)	126		228		250		4		222		203
Cash provided by (used for) operating activities per share(1)	0.44		(1.18	)	1.46		2.63		2.89		0.05		2.57		2.36

(1) Non-IFRS measure; see Non-IFRS Financial Measures section.

(2) Dividends declared per share stated in Canadian dollars.

(3) Includes current and non-current long term debt.

(4) European indicative average OSB price represents the gross delivered price to the largest continental market.

15

Exhibit 99.3

Quarterly results are impacted by seasonal factors such as weather and building activity. Market demand varies seasonally, as homebuilding activity and repair-and-remodelling work – the principal end uses of OSB – are generally stronger in the spring and summer months. Adverse weather can also limit access to logging areas, which can affect the supply of fibre to Norbord’s operations. OSB shipment volumes and prices are affected by these factors as well as by global supply and demand conditions.

Operating working capital is typically built up in the first quarter of the year due primarily to log inventory purchases in the northern regions of North America. This inventory is generally consumed in the spring and summer months.

The demand for and the price of OSB in North America are significant variables affecting the comparability of Norbord’s results over the past eight quarters. Fluctuations in earnings during that time mirror fluctuations in the demand for and the price of OSB in North America. The Company estimates that the annualized impact on Adjusted EBITDA of a $10 per Msf (7⁄16-inch basis) change in the realized North American OSB price, when operations are running at full capacity, is approximately $64 million or $0.78 per basic share (approximately $52 million or $0.63 per basic share based on the last 12 months of production). Regional pricing variations, particularly in the Southern US and Western Canada, make the North Central benchmark price a useful, albeit imperfect, proxy for overall North American OSB pricing. Similarly in Europe, regional pricing variations and product mix also make the European OSB indicative price a useful, albeit imperfect, proxy for overall European OSB pricing. Further, premiums obtained on value-added products, the pricing lag effect of maintaining an order file, and volume and trade discounts cause realized prices to differ from the benchmarks for both North America and Europe.

Global commodity prices affect the prices of key raw material inputs, primarily wood fibre, resin, wax and energy. Prices for resin, a petroleum-based product, generally follow global oil prices and had been trending higher since the third quarter of 2016 but decreased modestly in the second quarter of 2019.

Norbord has significant exposure to the Canadian dollar with approximately 37% of its global (47% of North American) panel production capacity located in Canada. The Company estimates that the favourable impact of a one-cent (US) decrease in the value of the Canadian dollar would positively impact annual Adjusted EBITDA by approximately $6 million when all six of Norbord’s Canadian OSB mills operate at full capacity. Norbord also has exposure to the Euro as all but one of the Company's European production facilities are located in the UK and export sales to the continent are denominated in Euros. The Company estimates that the favourable impact of a one-pence (UK) decrease in the value of the Euro would positively impact annual Adjusted EBITDA by less than $1 million when all UK production facilities operate at full capacity.

Items not related to ongoing business operations that had a significant impact on quarterly results include:

Impairment of Assets – Included in the fourth quarter of 2018 is an $80 million ($0.93 per basic and $0.92 per diluted share) non-cash pre-tax loss related to an impairment charge at the Company's 100 Mile House, British Columbia mill.

Costs related to 100 Mile House Indefinite Curtailment Announcement − Included in the second quarter of 2019 is $2 million ($0.02 per basic and diluted share) of severance and other related costs resulting from the announcement to indefinitely curtail the 100 Mile House mill starting in August 2019.

Loss on Disposal of Assets– Included in the second quarter of 2019 is a $1 million ($0.01 per basic and diluted share) non-cash loss on the disposal of production equipment based on capital projects completed during the quarter. Included in the fourth quarter of 2018 is a $2 million ($0.02 per basic and diluted share) non-cash loss related to obsolete operating and maintenance supplies. As a result of investments in production equipment placed in service in 2017, included in the fourth quarter of 2017 is a $3 million ($0.03 per basic and diluted shares) non-cash loss primarily related to maintenance parts for decommissioned production equipment. Included in the third quarter of 2017 is a $2 million ($0.02 per basic and diluted share) non-cash loss for similar costs.

16

Exhibit 99.3

Stock-based Compensation and Related Costs– Included in the second and first quarters of 2019, second and first quarters of 2018, and third quarter of 2017 is $1 million ($0.01 per basic and diluted share) of stock-based compensation and related revaluation costs. Included in the third quarter of 2018 is $2 million ($0.02 per basic and diluted share) of similar costs.

Costs on Early Debt Extinguishment − Included in the second quarter of 2019 is a $9 million ($0.11 per basic and diluted share) premium paid on the early extinguishment of the senior secured notes due 2020 and a related $1 million ($0.01 per basic and diluted share) non-cash write-off of net unamortized debt issue costs.

Costs Related to Inverness Expansion Project – Included in the third quarter of 2017 is $1 million ($0.01 per basic and diluted share) of pre-operating costs related to the Inverness expansion project.

The following table reconciles Adjusted (loss) earnings to the most directly comparable IFRS measure:

(US $ millions)	Q2 2019			Q1 2019			Q4 2018			Q3 2018			Q2 2018			Q1 2018			Q4 2017			Q3 2017
(Loss) earnings	$	(14	)	$	1		$	(28	)	$	130		$	174		$	95		$	160		$	130
Add: Impairment of assets	—			—			80			—			—			—			—			—
Add: Loss on disposal of assets	1			—			2			—			—			—			3			2
Add: Stock-based compensation and related costs	1			1			—			2			1			1			—			1
Add: Costs on early extinguishment of 2020 Notes	10			—			—			—			—			—			—			—
Add: Costs related to 100 Mile House  indefinite curtailment announcement	2			—			—			—			—			—			—			—
Add: Pre-operating costs related to Inverness project	—			—			—			—			—			—			—			1
Add: Reported income tax (recovery) expense	(10		)	(5		)	(26		)	37			53			36			6			32
Adjusted pre-tax (loss) earnings	(10		)	(3		)	28			169			228			132			169			166
Less: Income tax recovery (expense) at  statutory rate(1)	2			1			(2		)	(46		)	(61		)	(36		)	(46		)	(45		)
Adjusted (loss) earnings	$	(8	)	$	(2	)	$	26		$	123		$	167		$	96		$	123		$	121

(1) Represents Canadian combined federal and provincial statutory rate (2019 and 2018 - 26%; 2017 - 27%). Q1 to Q3 of 2018 were based on the 27% rate and a true up for the full year rate of 26% was reflected in Q4.

17

Exhibit 99.3

The following table reconciles Adjusted EBITDA to the most directly comparable IFRS measure:

(US $ millions)	Q2 2019			Q1 2019			Q4 2018			Q3 2018			Q2 2018			Q1 2018		Q4 2017		Q3 2017
(Loss) earnings	$	(14	)	$	1		$	(28	)	$	130		$	174		$	95	$	160	$	130
Add: Finance costs	12			11			9			10			10			8		6		7
Less: Interest income	—			(1		)	(1		)	(2		)	(1		)	—		—		—
Add: Depreciation and amortization	34			35			34			34			36			30		29		27
Add: Income tax (recovery) expense	(10		)	(5		)	(26		)	37			53			36		6		32
Add: Impairment of assets	—			—			80			—			—			—		—		—
Add: Loss on disposal of assets	1			—			2			—			—			—		3		2
Add: Stock-based compensation and related costs	1			1			—			2			1			1		—		1
Add: Costs on early extinguishment of 2020 Notes	10			—			—			—			—			—		—		—
Add: Costs related to 100 Mile House  indefinite curtailment announcement	2			—			—			—			—			—		—		—
Add: Pre-operating costs related to Inverness project	—			—			—			—			—			—		—		1
Adjusted EBITDA(1)	$	36		$	42		$	70		$	211		$	273		$	170	$	204	$	200

(1) Non-IFRS measure; see Non-IFRS Financial Measures section.

CHANGES IN ACCOUNTING POLICIES

(i) Leases

In January 2016, the International Accounting Standards Board (IASB) issued IFRS 16, Leases (IFRS 16), which requires all leases to be reported on the balance sheet unless certain criteria for exclusion are met. IFRS 16 became effective for Norbord on January 1, 2019 and has been applied using the modified retrospective approach under which the cumulative effect of initial application was recognized in retained earnings as at January 1, 2019. As a result, comparative information has not been restated and is reported under IAS 17, Leases (IAS 17).

Upon transition to IFRS 16, Norbord recognized $24 million of lease liabilities and corresponding right-of-use (ROU) assets. Norbord elected the practical expedient to apply IFRS 16 only to contracts previously identified as leases under IAS 17. The lease liabilities for leases previously identified as operating leases under IAS 17 were measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate as at January 1, 2019, and have been included in accounts payable and accrued liabilities (current portion) and other liabilities (non-current portion). The weighted average incremental borrowing rate applied to these lease liabilities on January 1, 2019 was 4.6%. There were no material differences from the operating lease commitments disclosed in Norbord's 2018 audited annual financial statements. ROU assets related to these leases were measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments, and have been included in property, plant and equipment.

The carrying amounts of $3 million as at January 1, 2019 of the ROU assets and lease liabilities for leases previously classified as finance leases under IAS 17 have been determined to be the carrying amounts of the lease assets and lease liabilities measured under IAS 17 immediately before that date.

The following practical expedients were also applied upon transition to IFRS 16:

18

Exhibit 99.3

● excluded initial direct costs from the measurement of ROU assets at the date of initial application;

● used hindsight when determining the lease term where the contract contains options to extend or terminate the lease;

● used a single discount rate to a portfolio of leases with similar characteristics.

The application of the above practical expedients did not result in any impact to retained earnings.

The revised accounting policy is as follows:

At inception of a contract, Norbord will assess whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. When a contract contains a lease, Norbord will recognize an ROU asset and a lease obligation at commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability less adjustments. ROU assets are recorded at cost less accumulated depreciation, and are depreciated on a straight-line basis over the shorter of the estimated useful life of the ROU asset or the lease term, and would be adjusted for certain remeasurements of the lease liability. When events or changes in circumstances are identified which may indicate that their carrying amount is less than the recoverable amount, ROU assets would be reviewed for impairment as described in note 2(h) of Norbord's 2018 audited annual financial statements.

Lease liabilities are initially measured at the net present value of lease payments outstanding at lease commencement, discounted using the interest rate implicit in the lease or, if not readily determinable, Norbord's estimated incremental borrowing rate commensurate with the lease term. Subsequently, lease liabilities are measured at amortized cost using the effective interest method and remeasured to reflect any reassessment of options or lease modifications, or to reflect changes in lease payments, with a corresponding adjustment to the ROU asset or statement of earnings if the ROU asset has been reduced to zero. Judgement has been applied in determining the lease term for contracts with renewal options and whether Norbord is reasonably certain to exercise such options. The impact on the lease term resulting from this assessment could impact the amount of lease liabilities and ROU assets recognized.

Norbord has elected not to recognize ROU assets and lease liabilities for leases with terms of less than 12 months and leases of low-value assets. Lease payments associated with these leases are recognized in earnings as an expense on a straight-line basis over the lease term.

(ii) Uncertainty over Income Tax Treatments

In June 2017, the IFRS Interpretations Committee of the IASB issued IFRIC 23, Uncertainty over Income Tax Treatments (IFRIC 23). The interpretation provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The interpretation became effective for Norbord on January 1, 2019 and did not have any impact on its interim financial statements.

(iii) Financial Instruments

In October 2017, the IASB issued amendments to IFRS 9 with regards to prepayment features with negative compensation. These amendments clarify that a financial asset containing prepayment features with negative compensation may be measured at amortized cost or fair value through other comprehensive income when eligibility conditions are met. The amendments became effective for Norbord on January 1, 2019 and did not have any impact on its interim financial statements.

(iv) Employee Benefits

In February 2018, the IASB issued amendments to IAS 19, Employee Benefits. The amendments clarify the actuarial assumptions to be used for defined benefit pension plans upon plan amendment, curtailment or settlement. These amendments became effective for Norbord on January 1, 2019 and did not have a significant impact on its interim financial statements.

19

Exhibit 99.3

SIGNIFICANT ACCOUNTING POLICIES, JUDGEMENTS AND ESTIMATES

Management has selected appropriate accounting policies and made certain estimates and assumptions that affect the reported amounts and other disclosure in the interim financial statements. These accounting policies, judgements and estimates are described in the 2018 audited financial statements of the Company or in the section above.

INTERNAL CONTROLS OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES

There have been no changes in Norbord’s internal controls over financial reporting and disclosure controls and procedures during the three months ended July 6, 2019 that have materially affected, or are reasonably likely to materially affect, its internal controls over financial reporting and its disclosure controls and procedures.

NON-IFRS FINANCIAL MEASURES

The following non-IFRS financial measures have been used in this MD&A. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Each non-IFRS financial measure is defined below. Where appropriate, a quantitative reconciliation of the non-IFRS financial measure to the most directly comparable IFRS measure is provided.

Adjusted (loss) earnings is defined as (loss) earnings determined in accordance with IFRS before unusual or non-recurring items and using a normalized income tax rate. Non-recurring items include the 2018 impairment of assets charge and pre-operating costs related to the 2017 Inverness, Scotland expansion project. Other items include costs on early extinguishment of the 2020 notes, costs related to the announcement of the indefinite curtailment of the 100 Mile House, British Columbia mill, non-cash losses on disposal of assets, and stock-based compensation and related revaluation costs. The actual income tax expense is added back and a tax expense calculated at the Canadian combined federal and provincial statutory rate is deducted. Adjusted (loss) earnings per share is Adjusted (loss) earnings divided by the weighted average number of common shares outstanding (on a basic or diluted basis, as specified).

The following table reconciles Adjusted (loss) earnings to the most directly comparable IFRS measure:

(US $ millions)	Q2 2019			Q1 2019			Q2 2018			6 mos 2019			6 mos 2018
(Loss) earnings	$	(14	)	$	1		$	174		$	(13	)	$	269
Add: Loss on disposal of assets	1			—			—			1			—
Add: Stock-based compensation and related costs	1			1			1			2			2
Add: Costs on early extinguishment of 2020 Notes	10			—			—			10			—
Add: Costs related to 100 Mile House indefinite  curtailment announcement	2			—			—			2			—
Add: Reported income tax (recovery) expense	(10		)	(5		)	53			(15		)	89
Adjusted pre-tax (loss) earnings	(10		)	(3		)	228			(13		)	360
Less: Income tax recovery (expense) at statutory rate(1)	2			1			(61		)	3			(97		)
Adjusted (loss) earnings	$	(8	)	$	(2	)	$	167		$	(10	)	$	263

(1) Represents Canadian combined federal and provincial statutory rate.

Adjusted EBITDA is defined as (loss) earnings determined in accordance with IFRS before finance costs, interest income, income taxes, depreciation, amortization and other unusual or non-recurring items. Non-recurring items include the 2018 impairment of assets and pre-operating costs related to the 2017 Inverness expansion project. Other items include costs on early extinguishment of the 2020 notes, costs related to the announcement of the indefinite curtailment of the 100 Mile House, British Columbia mill, non-cash losses on disposal of assets, and stock-based compensation and related revaluation costs. As Norbord operates in a cyclical commodity business, Norbord interprets Adjusted EBITDA over the cycle as a useful indicator of the

20

Exhibit 99.3

Company’s ability to incur and service debt and meet capital expenditure requirements. In addition, Norbord views Adjusted EBITDA as a measure of gross profit and interprets Adjusted EBITDA trends as indicators of relative operating performance.

The following table reconciles Adjusted EBITDA to the most directly comparable IFRS measure:

(US $ millions)	Q2 2019			Q1 2019			Q2 2018			6 mos 2019			6 mos 2018
(Loss) earnings	$	(14	)	$	1		$	174		$	(13	)	$	269
Add: Finance costs	12			11			10			23			18
Less: Interest income	—			(1		)	(1		)	(1		)	(1		)
Add: Costs on early extinguishment of 2020 Notes	10			—			—			10			—
Add: Depreciation and amortization	34			35			36			69			66
Add: Income tax (recovery) expense	(10		)	(5		)	53			(15		)	89
EBITDA	32			41			272			73			441
Add: Loss on disposal of assets	1			—			—			1			—
Add: Stock-based compensation and related costs	1			1			1			2			2
Add: Costs related to 100 Mile House indefinite  curtailment announcement	2			—			—			2			—
Adjusted EBITDA	$	36		$	42		$	273		$	78		$	443

The following tables reconcile Adjusted EBITDA per geographic segment to EBITDA:

								Q2 2019
(US $ millions)	North America		Europe		Unallocated			Total
EBITDA(1)	$	15	$	21	$	(4	)	$	32
Add: Loss on disposal of assets	1		—		—			1
Add: Stock-based compensation and related costs	—		—		1			1
Add: Costs related to 100 Mile House indefinite  curtailment announcement	2		—		—			2
Adjusted EBITDA	$	18	$	21	$	(3	)	$	36

								Q1 2019
(US $ millions)	North America		Europe		Unallocated			Total
EBITDA(1)	$	23	$	21	$	(3	)	$	41
Add: Stock-based compensation and related costs	—		—		1			1
Adjusted EBITDA	$	23	$	21	$	(2	)	$	42

								Q2 2018
(US $ millions)	North America		Europe		Unallocated			Total
EBITDA(1)	$	256	$	21	$	(5	)	$	272
Add: Stock-based compensation and related costs	—		—		1			1
Adjusted EBITDA	$	256	$	21	$	(4	)	$	273

								6 mos 2019
(US $ millions)	North America		Europe		Unallocated			Total
EBITDA(1)	$	38	$	42	$	(7	)	$	73
Add: Loss on disposal of assets	1		—		—			1
Add: Stock-based compensation and related costs	—		—		2			2
Add: Costs related to 100 Mile House indefinite  curtailment announcement	2		—		—			2
Adjusted EBITDA	$	41	$	42	$	(5	)	$	78

21

Exhibit 99.3

								6 mos 2018
(US $ millions)	North America		Europe		Unallocated			Total
EBITDA(1)	$	412	$	39	$	(10	)	$	441
Add: Stock-based compensation and related costs	—		—		2			2
Adjusted EBITDA	$	412	$	39	$	(8	)	$	443

(1) EBITDA is defined as earnings before finance costs, interest income, income tax, depreciation and amortization, and costs on early extinguishment of debt.

Operating working capital is defined as accounts receivable plus inventory and prepaids less accounts payable and accrued liabilities. Operating working capital is a measure of the investment in accounts receivable, inventory, prepaids, accounts payable and accrued liabilities required to support operations. The Company aims to minimize its investment in operating working capital; however, the amount will vary with seasonality and with sales expansions and contractions.

(US $ millions)	Jul 6, 2019			Apr 6, 2019			Dec 31, 2018			Jun 30, 2018
Accounts receivable	$	136		$	175		$	149		$	214
Inventory	234			257			220			244
Prepaids	12			10			12			10
Accounts payable and accrued liabilities	(220		)	(259		)	(293		)	(256		)
Operating working capital	$	162		$	183		$	88		$	212

Total working capital is operating working capital plus cash and cash equivalents and taxes receivable less bank advances, if any, and taxes payable.

(US $ millions)	Jul 6, 2019		Apr 6, 2019			Dec 31, 2018			Jun 30, 2018
Operating working capital	$	162	$	183		$	88		$	212
Cash and cash equivalents	315		2			128			298
Taxes receivable	71		43			—			—
Taxes payable	—		(11		)	(28		)	(29		)
Total working capital	$	548	$	217		$	188		$	481

Capital employed is defined as the sum of property, plant and equipment, intangible assets and operating working capital. Capital employed is a measure of the total investment in a business in terms of property, plant and equipment, intangible assets and operating working capital.

(US $ millions)	Jul 6, 2019			Apr 6, 2019			Dec 31, 2018			Jun 30, 2018
Property, plant and equipment	$	1,410		$	1,425		$	1,402		$	1,453
Intangible assets	19			19			20			23
Accounts receivable	136			175			149			214
Inventory	234			257			220			244
Prepaids	12			10			12			10
Accounts payable and accrued liabilities	(220		)	(259		)	(293		)	(256		)
Capital employed	$	1,591		$	1,627		$	1,510		$	1,688

ROCE (return on capital employed) is Adjusted EBITDA divided by average annual or quarterly capital employed. ROCE is a measurement of financial performance, focusing on cash generation and the effective use of capital. As Norbord operates in a cyclical commodity business, it monitors ROCE over the cycle as a useful means of comparing businesses in terms of efficiency of management. Norbord targets top-quartile ROCE among North American forest products companies over the cycle.

ROE (return on equity) is Adjusted (loss) earnings divided by common shareholders’ equity adjusted for the 2018 impairment of assets charge and the accrued share purchases as at December 31, 2018. ROE is a measure that allows common shareholders to determine how effectively their invested capital is being employed. As Norbord operates in a cyclical commodity business, it looks at ROE over the cycle and targets top-quartile performance among North American forest products companies.

22

Exhibit 99.3

(US $ millions)	Jul 6, 2019		Apr 6, 2019		Dec 31, 2018		Jun 30, 2018
Shareholders' equity	$	749	$	803	$	823	$	1,206
Add: Impairment of assets (net of tax)	59		59		59		—
Add: Common shares to be repurchased and cancelled	—		—		42		—
Shareholders' equity for ROE	$	808	$	862	$	924	$	1,206

Cash provided by (used for) operating activities per share is calculated as cash provided by (used for) operating activities as determined under IFRS, divided by the weighted average number of common shares outstanding.

Net debt is the principal value of long-term debt, including the current portion, other long-term debt and bank advances, if any, less cash and cash equivalents. Net debt for financial covenant purposes is net debt excluding other long-term debt and including other liabilities classified as debt for financial covenant purposes, letters of credit and guarantees outstanding, and any bank advances. Net debt is a useful indicator of a company’s debt position. Net debt comprises:

(US $ millions)	Jul 6, 2019			Apr 6, 2019			Dec 31, 2018			Jun 30, 2018
Long-term debt, principal value	$	905		$	555		$	555		$	555
Add: Other long-term debt	82			80			—			—
Less: Cash and cash equivalents	(315		)	(2		)	(128		)	(298		)
Net debt	672			633			427			257
Less: Other long-term debt	(82		)	(80		)	—			—
Add: Other liabilities classified as debt for financial covenant purposes	2			3			—			—
Add: Letters of credit and guarantees	9			8			8			19
Net debt for financial covenant purposes	$	601		$	564		$	435		$	276

Tangible net worth consists of shareholders’ equity including certain adjustments. A minimum tangible net worth is one of two financial covenants contained in the Company’s committed bank lines. For financial covenant purposes, tangible net worth excludes the 2018 net impairment of assets charge, all IFRS transitional adjustments and all movement in cumulative other comprehensive income subsequent to January 1, 2011 (includes those movements related to the translation of Ainsworth in prior periods).

(US $ millions)	Jul 6, 2019		Apr 6, 2019		Dec 31, 2018		Jun 30, 2018
Shareholders’ equity	$	749	$	803	$	823	$	1,206
Add: Impairment of assets (net of tax)	59		59		59		—
Add: Other comprehensive income movement(1)	85		69		74		59
Add: Impact of Ainsworth changing functional currencies	155		155		155		155
Add: IFRS transitional adjustments	21		21		21		21
Tangible net worth	$	1,069	$	1,107	$	1,132	$	1,441

(1) Cumulative subsequent to January 1, 2011.

Net debt to capitalization, book basis, is net debt for financial covenant purposes divided by the sum of net debt for financial covenant purposes and tangible net worth. Net debt to capitalization on a book basis is a measure of a company’s relative debt position. Norbord interprets this measure as an indicator of the relative strength and flexibility of its balance sheet. In addition, a maximum net debt to capitalization, book basis, is one of two financial covenants contained in the Company’s committed bank lines.

Net debt to capitalization, market basis, is net debt for financial covenant purposes divided by the sum of net debt for financial covenant purposes and market capitalization. Market capitalization is the number of common shares outstanding at period-end multiplied by the trailing 12-month average per share market price (in Canadian dollars) of $38.39 for the second quarter of 2019, $43.91 for the first quarter of 2019 and $46.79 for the second quarter of 2018. Net debt to capitalization, market basis, is a key measure of a company’s relative debt position and Norbord interprets this measure as an indicator of the relative strength

23

Exhibit 99.3

and flexibility of its balance sheet. While the Company considers both book and market basis metrics, it believes the market basis to be superior to the book basis in measuring the true strength and flexibility of its balance sheet.

FORWARD-LOOKING STATEMENTS

This document includes forward-looking statements, as defined by applicable securities legislation. Often, but not always, forward-looking statements can be identified by the use of words such as “believes,” “expects,” “targets,” “outlook,” “scheduled,” “estimates,” “represents,” “forecasts,” “aims,” “predicts,” “plans,” “projects,” “anticipates,” “intends,” “supports,” “continues,” “suggests,” “considers,” “pro forma,” “potential,” “future” or variations of such words and phrases, or negative versions thereof, or statements that certain actions, events or results “may,” “could,” “would,” “should,” “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Norbord to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Examples of such statements include, but are not limited to, comments with respect to: (1) outlook for the markets for products, including North American and European OSB demand; (2) expectations regarding future product pricing; (3) outlook for operations; (4) expectations regarding mill capacity; (5) objectives; (6) strategies to achieve those objectives; (7) expected financial results including the expected results of the MIP; (8) sensitivity to changes in product prices, such as the price of OSB; (9) sensitivity to changes in foreign exchange rates; (10) sensitivity to key input prices, such as the price of fibre, resin, wax and energy; (11) expectations regarding compliance with environmental regulations; (12) expectations regarding income tax rates; (13) expectations regarding contingent liabilities and guarantees, including the outcome of pending litigation; (14) expectations regarding the amount, timing and benefits of capital investments; (15) expectations regarding the amount and timing of dividend payments; and (16) historical, forecasted and other forward-looking information published by third parties such as the US Census Bureau, FEA (Forest Economic Advisors, LLC), APA-The Engineered Wood Association, Office for National Statistics and EUROCONSTRUCT which the Company may refer to but has not independently verified.

Although Norbord believes it has a reasonable basis for making these forward-looking statements, readers are cautioned not to place undue reliance on such forward-looking information. By its nature, forward-looking information involves numerous assumptions, inherent risks and uncertainties, both general and specific, which contribute to the possibility that the predictions, forecasts and other forward-looking statements will not occur. These factors include, but are not limited to: (1) assumptions in connection with the economic and financial conditions in the US, Canada, Europe and globally; (2) risks inherent to product concentration and cyclicality; (3) effects of competition and product pricing pressures; (4) risks inherent to customer dependence; (5) effects of variations in the price and availability of manufacturing inputs, including continued access to fibre resources at competitive prices; (6) availability of transportation services, including truck and rail services, and port facilities; (7) various events that could disrupt operations, including natural or catastrophic events and ongoing relations with employees; (8) impact of changes to, or non-compliance with, environmental or other regulations; (9) impact of any product liability claims in excess of insurance coverage; (10) risks inherent to a capital intensive industry; (11) impact of future outcomes of tax exposures; (12) potential future changes in tax laws; (13) effects of currency exposures and exchange rate fluctuations; (14) future operating costs; (15) availability of financing; (16) impact of future cross border trade rulings or agreements; (17) ability to implement new or upgraded information technology infrastructure; and (18) impact of information technology service disruptions or failures.

The above list of important factors affecting forward-looking information is not exhaustive. Additional factors are noted elsewhere, and reference should be made to the other risks discussed in filings with Canadian and United States securities regulatory authorities. Except as required by applicable law, Norbord does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by, or on behalf of, the Company, whether as a result of new information, future events or otherwise, or to publicly update or revise the above list of factors affecting this information.

24

EX-99.4

Exhibit 99.4

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Peter Wijnbergen, President and Chief Executive Officer of Norbord Inc., certify the following:

1.	Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Norbord Inc. (the “issuer”) for the interim period ended July 6, 2019.
2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.	Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosurein Issuers’ Annual and Interim Filings, for the issuer.
5.	Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
	(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
		(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
		(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
	(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
5.1	Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) 2013 framework.
5.2	N/A
5.3	N/A
6.	Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 7, 2019 and ended on July 6, 2019, that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 1, 2019

(signed) Peter Wijnbergen

Peter Wijnbergen

President and Chief Executive Officer

EX-99.5

Exhibit 99.5

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Robin Lampard, Senior Vice President and Chief Financial Officer of Norbord Inc., certify the following:

1.	Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Norbord Inc. (the “issuer”) for the interim period ended July 6, 2019.
2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.	Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosurein Issuers’ Annual and Interim Filings, for the issuer.
5.	Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
	(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
		(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
		(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
	(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
5.1	Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) 2013 framework.
5.2	N/A
5.3	N/A
6.	Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 7, 2019 and ended on July 6, 2019, that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 1, 2019

(signed) Robin Lampard

Robin Lampard

Senior Vice President and Chief Financial Officer

XML

Document and Entity Information	6 Months Ended
	Jul. 06, 2019
Document And Entity Information [Abstract]
Entity Registrant Name	Norbord Inc.
Entity Central Index Key	0000877365
Current Fiscal Year End Date	--12-31
Document Type	6-K
Document Period End Date	Jul. 06, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Amendment Description

XML

Interim Consolidated Balance Sheets - USD ($) $ in Millions	Jul. 06, 2019	Dec. 31, 2018
Current assets
Cash and cash equivalents	$ 315	$ 128
Accounts receivable	136	149
Taxes receivable	71	0
Inventory	234	220
Prepaids	12	12
Current assets	768	509
Non-current assets
Property, plant and equipment	1,410	1,402
Intangible assets	19	20
Deferred income tax assets	5	6
Other assets	5	5
Non-current assets	1,439	1,433
Assets	2,207	1,942
Current liabilities
Accounts payable and accrued liabilities	220	293
Current portion of non-current borrowings	240	0
Debt Extinguishment Accrual, Current	9	0
Repurchase Agreements Accrual	0	42
Taxes payable	0	28
Current liabilities	469	363
Non-current liabilities
Long-term debt	656	550
Other long-term debt	82	0
Other liabilities	49	34
Deferred income tax liabilities	202	172
Non-current liabilities	989	756
Shareholders’ equity	749	823
Liabilities and shareholders' equity	$ 2,207	$ 1,942

XML

Interim Consolidated Statements of Earnings - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018
Profit or loss [abstract]
Sales	$ 447	$ 707	$ 923	$ 1,283
Cost of sales	(408)	(430)	(840)	(832)
General and administrative expenses	(4)	(5)	(7)	(10)
Depreciation and amortization	(34)	(36)	(69)	(66)
Loss on disposal of assets	(1)	0	(1)	0
Expense of restructuring activities	2	0	2	0
Operating (loss) income	(2)	236	4	375
Non-operating items:
Finance costs	(12)	(10)	(23)	(18)
Interest income on deposits	0	1	1	1
Acquisition-related costs for transaction recognised separately from acquisition of assets and assumption of liabilities in business combination				0
Gain (loss) arising from difference between carrying amount of financial liability extinguished and consideration paid	(10)	0	(10)	0
(Loss) earnings before income tax	(24)	227	(28)	358
Income tax recovery (expense)	10	(53)	15	(89)
Profit (loss)	$ (14)	$ 174	$ (13)	$ 269
(Loss) earnings per common share
Basic (in dollars per share)	$ (0.17)	$ 2.01	$ (0.16)	$ 3.11
Diluted (in dollars per share)	$ (0.17)	$ 2.00	$ (0.16)	$ 3.09

XML

Interim Consolidated Statements of Comprehensive Income Statement - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018
Statement of comprehensive income [abstract]
(Loss) earnings	$ (14)	$ 174	$ (13)	$ 269
Items that will not be reclassified to earnings:
Actuarial gain (loss)	(4)	4	(5)	4
Items that may be reclassified subsequently to earnings:
Other comprehensive income, net of tax, exchange differences on translation	(12)	(21)	(6)	(10)
Other comprehensive loss, net of tax	(16)	(17)	(11)	(6)
Comprehensive (loss) income	$ (30)	$ 157	$ (24)	$ 263

XML

Interim Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Millions	Total	Share capital	Merger reserve	Contributed surplus	Retained (deficit) earnings		Accumulated other comprehensive loss
Balance, beginning of period at Dec. 31, 2017		$ 1,350		$ 8	$ (67)		$ (176)
Issue of common shares upon exercise of options and DRIP		6
Stock options exercised	$ 1			(1)
(Loss) earnings	269				269
Reverse accrual for common shares to be repurchased and cancelled under ASPP		0			0
Cancellation of treasury shares		0			0
Common share dividends					(81)
Other comprehensive loss	(6)						(6)
Balance, end of period at Jun. 30, 2018	1,206	1,356	$ (96)	7	121	[1]	(182)
Balance, beginning of period at Mar. 31, 2018		1,353		8	(13)		(165)
Issue of common shares upon exercise of options and DRIP		3
Stock options exercised				(1)
(Loss) earnings	174				174
Reverse accrual for common shares to be repurchased and cancelled under ASPP		0			0
Cancellation of treasury shares		0			0
Common share dividends					(40)
Other comprehensive loss	(17)						(17)
Balance, end of period at Jun. 30, 2018	1,206	1,356	(96)	7	121	[1]	(182)
Equity [abstract]
Deficit arising on cashless exercise of warrants in 2013					(263)
All other retained earnings					384
Balance, beginning of period at Dec. 31, 2018	823	1,280		4	(168)		(197)
Balance, end of period at Apr. 06, 2019		1,280		4	(193)		(192)
Balance, beginning of period at Dec. 31, 2018	823	1,280		4	(168)		(197)
Issue of common shares upon exercise of options and DRIP		0
Stock options exercised	1			0
(Loss) earnings	(13)				(13)
Reverse accrual for common shares to be repurchased and cancelled under ASPP		24			18
Cancellation of treasury shares		(24)			(19)
Common share dividends					(49)
Other comprehensive loss	(11)						(11)
Balance, end of period at Jul. 06, 2019	749	1,280	(96)	4	(231)	[1]	(208)
Balance, beginning of period at Apr. 06, 2019		1,280		4	(193)		(192)
Issue of common shares upon exercise of options and DRIP		0
Stock options exercised				0
(Loss) earnings	(14)				(14)
Reverse accrual for common shares to be repurchased and cancelled under ASPP		0			0
Cancellation of treasury shares		0			0
Common share dividends					(24)
Other comprehensive loss	(16)						(16)
Balance, end of period at Jul. 06, 2019	$ 749	$ 1,280	$ (96)	$ 4	(231)	[1]	$ (208)
Equity [abstract]
Deficit arising on cashless exercise of warrants in 2013					(263)
All other retained earnings					$ 32

[1] (i) Retained (deficit) earnings comprised of: Deficit arising on cashless exercise of warrants in 2013 $(263) $(263)All other retained earnings 32 384 $(231) $121

XML

Interim Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018
Operating activities
(Loss) earnings	$ (14)	$ 174	$ (13)	$ 269
Items not affecting cash:
Depreciation and amortization	34	36	69	66
Deferred income tax	11	28	32	31
Explanation of difference between operating lease commitments disclosed applying IAS 17 and lease liabilities recognised at date of initial application of IFRS 16 [text block]	2	0	2	0
Loss on disposal of assets, net	1	0	1	0
Costs on early extinguishment of 2020 Notes	10	0	10	0
Other items	(11)	(5)	7	2
Cash flows from (used in) operations	33	233	108	368
Net change in non-cash operating working capital balances	39	19	(72)	(74)
Net change in taxes receivable and taxes payable	(36)	(2)	(97)	(40)
Cash flows from (used in) operating activities	36	250	(61)	254
Investing activities
Investment in property, plant and equipment	(37)	(61)	(77)	(117)
Investment in intangible assets	(1)	(1)	(1)	(1)
Cash flows from (used in) investing activities	(38)	(62)	(78)	(118)
Financing activities
Common share dividends paid	(24)	(40)	(49)	(81)
Proceeds from issue of bonds, notes and debentures	350	0	350	0
Payments for debt issue costs	(4)	0	(4)	0
Issue of common shares	0	2	0	4
Payments to acquire or redeem entity's shares	0	0	(43)	0
Payments of lease liabilities, classified as financing activities	(3)	0	(6)	0
Accounts receivable securitization drawings	2	0	82	0
Proceeds from borrowings, classified as financing activities	350	0	350	0
Cash flows from (used in) financing activities	321	(38)	330	(77)
Foreign exchange revaluation on cash and cash equivalents held	(6)	(5)	(4)	(2)
Increase during period	313	145	187	57
Balance, beginning of period	2	153	128	241
Balance, end of period	$ 315	$ 298	$ 315	$ 298

XML

NATURE AND DESCRIPTION OF THE COMPANY

6 Months Ended

Jul. 06, 2019

Corporate Information And Statement Of IFRS Compliance [Abstract]

NATURE AND DESCRIPTION OF THE COMPANY

NATURE AND DESCRIPTION OF THE COMPANY

Norbord is an international producer of wood-based panels with 17 mills in the United States, Canada and Europe. Norbord is a publicly traded company listed on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE). The ticker symbol on both exchanges is “OSB”. The Company is incorporated under the Canada Business Corporations Act and is headquartered in Toronto, Ontario, Canada.

At period-end, Brookfield's interest was approximately 43% of the outstanding common shares of the Company.

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SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jul. 06, 2019

Significant Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

(a)      Statement of Compliance

These interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, on a basis consistent with the accounting policies Norbord disclosed in its audited consolidated financial statements as at, and for the year ended, December 31, 2018 unless noted otherwise in note 2(c). These interim financial statements do not contain all of the disclosures that are required in annual financial statements prepared under International Financial Reporting Standards (IFRS) and should be read in conjunction with Norbord’s 2018 audited annual financial statements which include information necessary or useful to understanding Norbord’s business and financial statement presentation. Norbord’s interim results are not necessarily indicative of its results for a full year.

These interim financial statements were authorized for issuance by the Board of Directors of the Company on July 31, 2019.

(b)      Basis of Presentation

These interim financial statements include the accounts of the Company and all of its wholly-owned subsidiaries.

(c) Changes in Accounting Policies

(i) Leases

In January 2016, the International Accounting Standards Board (IASB) issued IFRS 16, Leases (IFRS 16), which requires all leases to be reported on the balance sheet unless certain criteria for exclusion are met. IFRS 16 became effective for Norbord on January 1, 2019 and has been applied using the modified retrospective approach under which the cumulative effect of initial application was recognized in retained earnings as at January 1, 2019. As a result, comparative information has not been restated and is reported under IAS 17, Leases (IAS 17).

Upon transition to IFRS 16, Norbord recognized $24 million of lease liabilities and corresponding right-of-use (ROU) assets. Norbord elected the practical expedient to apply IFRS 16 only to contracts previously identified as leases under IAS 17. The lease liabilities for leases previously identified as operating leases under IAS 17 were measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate as at January 1, 2019, and have been included in accounts payable and accrued liabilities (current portion) and other liabilities (non-current portion). The weighted average incremental borrowing rate applied to these lease liabilities on January 1, 2019 was 4.6%. There were no material differences from the operating lease commitments disclosed in Norbord's 2018 audited annual financial statements. ROU assets related to these leases were measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments, and have been included in property, plant and equipment (note 7).

The carrying amounts of $3 million as at January 1, 2019 of the ROU assets and lease liabilities for leases previously classified as finance leases under IAS 17 have been determined to be the carrying amounts of the lease assets and lease liabilities measured under IAS 17 immediately before that date.

The following practical expedients were also applied upon transition to IFRS 16:

• excluded initial direct costs from the measurement of ROU assets at the date of initial application;

• used hindsight when determining the lease term where the contract contains options to extend or terminate the lease;

• used a single discount rate on a portfolio of leases with similar characteristics.

The application of the above practical expedients did not result in any impact to retained earnings.

The revised accounting policy is as follows:

At inception of a contract, Norbord will assess whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. When a contract contains a lease, Norbord will recognize an ROU asset and a lease obligation at commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability less adjustments. ROU assets are recorded at cost less accumulated depreciation, and are depreciated on a straight-line basis over the shorter of the estimated useful life of the ROU asset or the lease term, and would be adjusted for certain remeasurements of the lease liability. When events or changes in circumstances are identified which may indicate that their carrying amount is less than the recoverable amount, ROU assets would be reviewed for impairment as described in note 2(h) of Norbord's 2018 audited annual financial statements.

Lease liabilities are initially measured at the net present value of lease payments outstanding at lease commencement, discounted using the interest rate implicit in the lease or, if not readily determinable, Norbord's estimated incremental borrowing rate commensurate with the lease term. Subsequently, lease liabilities are measured at amortized cost using the effective interest method and remeasured to reflect any reassessment of options or lease modifications, or to reflect changes in lease payments, with a corresponding adjustment to the ROU asset or statement of earnings if the ROU asset has been reduced to zero. Judgement has been applied in determining the lease term for contracts with renewal options and whether Norbord is reasonably certain to exercise such options. The impact on the lease term resulting from this assessment could impact the amount of lease liabilities and ROU assets recognized.

Norbord has elected not to recognize ROU assets and lease liabilities for leases with terms of less than 12 months and leases of low-value assets. Lease payments associated with these leases are recognized in earnings as an expense on a straight-line basis over the lease term.

(ii) Uncertainty over Income Tax Treatments

In June 2017, the IFRS Interpretations Committee of the IASB issued IFRIC 23, Uncertainty over Income Tax Treatments (IFRIC 23). The interpretation provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The interpretation became effective for Norbord on January 1, 2019 and did not have any impact on its interim financial statements.

(iii) Financial Instruments

In October 2017, the IASB issued amendments to IFRS 9 with regards to prepayment features with negative compensation. These amendments clarify that a financial asset containing prepayment features with negative compensation may be measured at amortized cost or fair value through other comprehensive income when eligibility conditions are met. The amendments became effective for Norbord on January 1, 2019 and did not have any impact on its interim financial statements.

(iv) Employee Benefits

In February 2018, the IASB issued amendments to IAS 19, Employee Benefits. The amendments clarify the actuarial assumptions to be used for defined benefit pension plans upon plan amendment, curtailment or settlement. These amendments became effective for Norbord on January 1, 2019 and did not have a significant impact on its interim financial statements.

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ACCOUNTS RECEIVABLE

6 Months Ended

Jul. 06, 2019

Subclassifications of assets, liabilities and equities [abstract]

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

The Company has the ability to draw up to $125 million under a multi-currency accounts receivable securitization program with a third-party trust sponsored by a highly rated Canadian financial institution. The program is revolving and has an evergreen commitment subject to termination on 12 months’ notice. Under the program, the Company has transferred substantially all of its present and future trade accounts receivable to the trust, on a fully serviced basis, for proceeds consisting of cash and deferred purchase price. However, the asset derecognition criteria under IFRS have not been met and the transferred accounts receivable remain recorded as an asset.

At period-end, the Company had transferred but continued to recognize $117 million (December 31, 2018 – $123 million) in trade accounts receivable, and the Company recorded drawings of $82 million as other long-term debt (December 31, 2018 – $nil) relating to this financing program. The level of accounts receivable transferred under the program fluctuates with the level of shipment volumes, product prices and foreign exchange rates. The amount the Company is able to draw under the program at any point in time depends on the level of accounts receivable transferred and timing of cash settlements, concentration limits and credit enhancement ratios. At period-end, the Company's drawings of $82 million were the maximum available under the program at that time. The amount the Company chooses to draw under the program will fluctuate with the Company’s cash requirements at that point in time. Any drawings are presented as other long-term debt on the balance sheet and are excluded from the net debt to total capitalization calculation for financial covenant purposes (note 5). The utilization charge, which is based on money market rates plus a margin, and other program fees are recorded as finance costs. Year-to-date, the utilization charges on drawings ranged from 1.6% to 4.0% (2018 – no utilization charges).

The securitization program contains no financial covenants; however, the program is subject to minimum credit-rating requirements. The Company must maintain a long-term issuer credit rating of at least single B (mid) or the equivalent. As at July 31, 2019, the Company’s ratings were BB (Standard & Poor’s Ratings Services) and Ba1 (Moody’s Investors Service).

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INVENTORY

6 Months Ended

Jul. 06, 2019

Inventories [Abstract]

INVENTORY

INVENTORY

(US $ millions)	Jul 6, 2019		Dec 31, 2018
Raw materials	$	74	$	72
Finished goods	74		69
Operating and maintenance supplies	86		79
	$	234	$	220

At period-end, the provision to reflect inventories at the lower of cost and net realizable value was $15 million (December 31, 2018 – $20 million).

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LONG-TERM DEBT

6 Months Ended

Jul. 06, 2019

Financial Instruments [Abstract]

LONG-TERM DEBT

LONG-TERM DEBT

(US $ millions)	Jul 6, 2019			Dec 31, 2018
Principal value
5.375% senior secured notes due December 2020	$	240		$	240
6.25% senior secured notes due April 2023	315			315
5.75% senior secured notes due July 2027	350			—
	905			555
Less: Unamortized debt issue costs	(9		)	(5		)
Less: Current portion	(240		)	—
	$	656		$	550

Senior Secured Notes Due 2027

On June 24, 2019, the Company completed the issuance of $350 million in senior secured notes due July 2027 with an interest rate of 5.75%. Debt issue costs of $6 million were incurred in connection with the issuance. The notes rank pari passu with the Company's existing senior secured notes due in 2020 and 2023 and committed revolving bank lines. On July 17, 2019, the Company used the proceeds to redeem, prior to maturity, the $240 million senior secured notes due December 2020. A premium of $9 million was paid on the early redemption. In addition, a $1 million non-cash charge related to net unamortized debt issue costs was recognized.

Revolving Bank Lines

The Company has an aggregate commitment of $245 million under committed revolving bank lines which bear interest at money market rates plus a margin that varies with the Company’s credit rating. The maturity date of the total aggregate commitment is May 2021. The bank lines are secured by a first lien on the Company’s North American OSB inventory and property, plant and equipment. This lien is shared pari passu with holders of the 2020, 2023 and 2027 senior secured notes.

At period-end, none (December 31, 2018 – none) of the revolving bank lines were drawn as cash, $9 million (December 31, 2018 – $8 million) was utilized for letters of credit and guarantees and $236 million (December 31, 2018 – $237 million) was available to support short-term liquidity requirements.

The revolving bank lines contain two quarterly financial covenants: minimum tangible net worth of $500 million and maximum net debt to total capitalization, book basis, of 65%. The Company was in compliance with the financial covenants at period-end.

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OTHER LIABILITIES

6 Months Ended

Jul. 06, 2019

Subclassifications of assets, liabilities and equities [abstract]

OTHER LIABILITIES

OTHER LIABILITIES

(US $ millions)	Jul 6, 2019		Dec 31, 2018
Defined benefit pension obligations	$	24	$	20
Lease obligations	13		2
Accrued employee benefits	7		6
Reforestation obligations	4		2
Unrealized monetary hedge loss	—		3
Other	1		1
	$	49	$	34

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LEASES (Notes)

6 Months Ended

Jul. 06, 2019

Leases [Abstract]

LEASES

NOTE 7. LEASES

Information about Norbord's ROU assets included in property, plant and equipment is as follows:

(US $ millions)	Land		Buildings		Production Equipment			Total
January 1, 2019	$	3	$	4	$	17		$	24
Additions	—		—		2			2
Depreciation	—		—		(5		)	(5		)
July 6, 2019	$	3	$	4	$	14		$	21

During the quarter and year-to-date, less than $1 million and $1 million, respectively, of payments related to short-term leases was included in cost of sales. During the quarter and year-to-date, finance costs include less than $1 million related to lease liabilities.

During the quarter and year-to-date, total cash outflows related to all leases were $3 million and $7 million respectively.

Leases of certain production equipment contain residual value guarantees of the ROU assets at the end of the contract term. At period-end, the expected amount payable under these residual value guarantees was less than $1 million.

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SHAREHOLDERS' EQUITY

6 Months Ended

Jul. 06, 2019

Share Capital, Reserves, And Other Equity Interest [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

Share Capital

	6 mos 2019					6 mos 2018
	Shares (millions)		Amount (US $ millions)			Shares (millions)	Amount (US $ millions)
Common shares outstanding, beginning of period	81.7		$	1,280		86.4	$	1,350
Issuance of common shares upon exercise of options and DRIP	—		—			0.3	6
Reverse accrual for shares to be repurchased and/or cancelled in 2019	1.6		24			—	—
Shares repurchased in 2018 and cancelled in 2019	(0.2	)	(2		)	—	—
Shares repurchased and cancelled in 2019	(1.4	)	(22		)	—	—
Common shares outstanding, end of period	81.7		$	1,280		86.7	$	1,356

Normal Course Issuer Bid Program

In October 2018, the Company renewed its Normal Course Issuer Bid (NCIB) in accordance with Toronto Stock Exchange (TSX) rules. Under the NCIB, the Company may purchase up to 5,191,965 of its common shares, representing 10% of Norbord’s public float as of October 22, 2018, pursuant to TSX rules.

In December 2018, the Company entered into an automatic share purchase plan (ASPP) in order to facilitate the repurchase of its common shares under its NCIB during the regularly scheduled quarterly trading blackout period. During the first quarter of 2019, the Company repurchased and cancelled 1.4 million common shares under the ASPP for a total cost of $39 million. Of the total cost, $22 million represented a reduction in share capital and the remaining $17 million was charged to retained earnings. During the first quarter of 2019, 0.2 million shares purchased and accrued for in 2018 were also cancelled. Total cost relating to these shares was $4 million, of which $2 million represented a reduction in share capital and the remaining $2 million was charged to retained earnings. The Company has now exhausted the current NCIB limit.

Purchases were made on the open market by the Company through the facilities of the TSX, the NYSE or Canadian or US alternative trading systems, if eligible, in accordance with the requirements of the TSX and applicable securities laws. The price that the Company paid for any such common shares was the market price of such shares at the time of acquisition.

Dividend Reinvestment Plan (DRIP)

Year-to-date, no dividends were reinvested in common shares (2018 – less than $1 million).

Merger Reserve

On March 31, 2015, the Company and Ainsworth Lumber Co. Ltd. (Ainsworth) completed an arrangement under which the Company acquired all of the outstanding common shares of Ainsworth in an all-share transaction. The Company elected not to account for this transaction as a business combination under IFRS 3, Business Combinations, as the transaction represented a combination of entities under common control of Brookfield. Accordingly, the book values of the two entities were combined and no adjustments were made to reflect fair values or to recognize any new assets or liabilities of either entity.

The merger reserve represents the difference between the fair value of the Norbord common shares on the date of issuance as consideration and the book value of Ainsworth’s net assets exchanged.

Stock Options

Year-to-date, no stock options were granted (2018 – 0.2 million stock options) and stock option expense of less than $1 million was recorded with a corresponding increase in contributed surplus (2018 – less than $1 million).

Year-to-date, less than 0.1 million common shares (2018 – 0.3 million common shares) were issued as a result of options exercised under the stock option plan for total cash proceeds of less than $1 million (2018 – $4 million) in addition to less than $1 million (2018 – $1 million) representing the vested amount of stock options transferred from contributed surplus.

Accumulated Other Comprehensive Loss

(US $ millions)	Jul 6, 2019			Dec 31, 2018
Foreign currency translation loss on foreign operations, net of tax of $(3)  (December 31, 2018 – $(5))	$	(165	)	$	(159	)
Net loss on hedge of net investment in foreign operations, net of tax of $3 (December 31, 2018 – $3)	(8		)	(8		)
Actuarial loss on defined benefit pension obligations, net of tax of $11 (December 31, 2018 – $9)	(35		)	(30		)
Accumulated other comprehensive loss, net of tax	$	(208	)	$	(197	)

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

Share Capital

	6 mos 2019					6 mos 2018
	Shares (millions)		Amount (US $ millions)			Shares (millions)	Amount (US $ millions)
Common shares outstanding, beginning of period	81.7		$	1,280		86.4	$	1,350
Issuance of common shares upon exercise of options and DRIP	—		—			0.3	6
Reverse accrual for shares to be repurchased and/or cancelled in 2019	1.6		24			—	—
Shares repurchased in 2018 and cancelled in 2019	(0.2	)	(2		)	—	—
Shares repurchased and cancelled in 2019	(1.4	)	(22		)	—	—
Common shares outstanding, end of period	81.7		$	1,280		86.7	$	1,356

Normal Course Issuer Bid Program

In October 2018, the Company renewed its Normal Course Issuer Bid (NCIB) in accordance with Toronto Stock Exchange (TSX) rules. Under the NCIB, the Company may purchase up to 5,191,965 of its common shares, representing 10% of Norbord’s public float as of October 22, 2018, pursuant to TSX rules.

In December 2018, the Company entered into an automatic share purchase plan (ASPP) in order to facilitate the repurchase of its common shares under its NCIB during the regularly scheduled quarterly trading blackout period. During the first quarter of 2019, the Company repurchased and cancelled 1.4 million common shares under the ASPP for a total cost of $39 million. Of the total cost, $22 million represented a reduction in share capital and the remaining $17 million was charged to retained earnings. During the first quarter of 2019, 0.2 million shares purchased and accrued for in 2018 were also cancelled. Total cost relating to these shares was $4 million, of which $2 million represented a reduction in share capital and the remaining $2 million was charged to retained earnings. The Company has now exhausted the current NCIB limit.

Purchases were made on the open market by the Company through the facilities of the TSX, the NYSE or Canadian or US alternative trading systems, if eligible, in accordance with the requirements of the TSX and applicable securities laws. The price that the Company paid for any such common shares was the market price of such shares at the time of acquisition.

Dividend Reinvestment Plan (DRIP)

Year-to-date, no dividends were reinvested in common shares (2018 – less than $1 million).

Merger Reserve

On March 31, 2015, the Company and Ainsworth Lumber Co. Ltd. (Ainsworth) completed an arrangement under which the Company acquired all of the outstanding common shares of Ainsworth in an all-share transaction. The Company elected not to account for this transaction as a business combination under IFRS 3, Business Combinations, as the transaction represented a combination of entities under common control of Brookfield. Accordingly, the book values of the two entities were combined and no adjustments were made to reflect fair values or to recognize any new assets or liabilities of either entity.

The merger reserve represents the difference between the fair value of the Norbord common shares on the date of issuance as consideration and the book value of Ainsworth’s net assets exchanged.

Stock Options

Year-to-date, no stock options were granted (2018 – 0.2 million stock options) and stock option expense of less than $1 million was recorded with a corresponding increase in contributed surplus (2018 – less than $1 million).

Year-to-date, less than 0.1 million common shares (2018 – 0.3 million common shares) were issued as a result of options exercised under the stock option plan for total cash proceeds of less than $1 million (2018 – $4 million) in addition to less than $1 million (2018 – $1 million) representing the vested amount of stock options transferred from contributed surplus.

Accumulated Other Comprehensive Loss

(US $ millions)	Jul 6, 2019			Dec 31, 2018
Foreign currency translation loss on foreign operations, net of tax of $(3)  (December 31, 2018 – $(5))	$	(165	)	$	(159	)
Net loss on hedge of net investment in foreign operations, net of tax of $3 (December 31, 2018 – $3)	(8		)	(8		)
Actuarial loss on defined benefit pension obligations, net of tax of $11 (December 31, 2018 – $9)	(35		)	(30		)
Accumulated other comprehensive loss, net of tax	$	(208	)	$	(197	)

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100 MILE HOUSE INDEFINITE CURTAILMENT ANNOUNCEMENT (Notes)

6 Months Ended

Jul. 06, 2019

Disclosure of impairment of assets [Abstract]

100 MILE HOUSE INDEFINITE CURTAILMENT ANNOUNCEMENT

NOTE 9. 100 MILE HOUSE INDEFINITE CURTAILMENT ANNOUNCEMENT

In the fourth quarter of 2018, an impairment loss of $80 million was recorded with respect to the Company's mill in 100 Mile House, British Columbia reflecting the reduction in the annual allowable cut and the longer-term trend of high wood costs in the region. During the quarter, the Company announced a plan to indefinitely curtail this mill commencing in August 2019 as a result of the continued wood supply shortages and high wood prices. As a result, a $2 million charge has been recognized to provide for severance and related costs.

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INCOME TAX

6 Months Ended

Jul. 06, 2019

Income Taxes [Abstract]

INCOME TAX

INCOME TAX

Income tax recovery (expense) recognized in the statement of earnings comprises the following:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Current income tax recovery (expense)	$	21		$	(25	)	$	47		$	(58	)
Deferred income tax expense	(11		)	(28		)	(32		)	(31		)
	$	10		$	(53	)	$	15		$	(89	)

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EARNINGS PER COMMON SHARE

6 Months Ended

Jul. 06, 2019

Earnings per share [abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

(US $ millions, except share and per share information, unless otherwise noted)	Q2 2019			Q2 2018		6 mos 2019			6 mos 2018
(Loss) earnings available to common shareholders	$	(14	)	$	174	$	(13	)	$	269
Common shares (millions):
Weighted average number of common shares outstanding	81.7			86.6		81.9			86.5
Dilutive stock options(1)	—			0.6		—			0.5
Diluted number of common shares	81.7			87.2		81.9			87.0
(Loss) earnings per common share:
Basic	$	(0.17	)	$	2.01	$	(0.16	)	$	3.11
Diluted	(0.17		)	2.00		(0.16		)	3.09

⁽¹⁾  Applicable if dilutive and when the weighted average daily closing share price for the period was greater than the exercise price for stock options. For the quarter and year-to-date period, there were 0.7 million stock options (quarter and year-to-date period ended June 30, 2018 – nil) that were not taken into account in the calculation of diluted earnings per share because their effect was anti-dilutive.

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SUPPLEMENTAL CASH FLOW INFORMATION

6 Months Ended

Jul. 06, 2019

Cash Flow Statement [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

SUPPLEMENTAL CASH FLOW INFORMATION

Other items comprise:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Stock-based compensation	$	1		$	1		$	2		$	2
Pension funding greater than expense	(1		)	(1		)	(2		)	(2		)
Cash interest paid (more) less than interest expense	(8		)	(8		)	1			—
Amortization of debt issue costs	—			—			1			1
Unrealized (gain) loss on outstanding currency forwards	(3		)	1			—			1
Unrealized foreign exchange loss (gain) on translation of monetary balances	—			—			4			(2		)
Other	—			2			1			2
	$	(11	)	$	(5	)	$	7		$	2

The net change in non-cash operating working capital balances comprises:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Cash provided by (used for):
Accounts receivable	$	37		$	(29	)	$	8		$	(43	)
Prepaids	(2		)	1			—			2
Inventory	25			12			(14		)	(24		)
Accounts payable and accrued liabilities	(21		)	35			(66		)	(9		)
	$	39		$	19		$	(72	)	$	(74	)

Cash interest and income taxes comprise:

(US $ millions)	Q2 2019		Q2 2018			6 mos 2019			6 mos 2018
Cash interest paid	$	19	$	17		$	20		$	17
Cash interest received	—		(1		)	(1		)	(1		)
Cash income taxes paid	16		28			66			101
Cash income taxes received	—		—			(15		)	(3		)

The net change in financial liabilities comprises:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019		6 mos 2018
Long-term debt	$	346		$	—		$	346	$	1
Other long-term debt	2			—			82		—
Accrued interest on long-term debt	(8		)	(8		)	2		(1		)
Costs on early extinguishment of 2020 Notes	9			—			9		—
Net increase (decrease) in financial liabilities	$	349		$	(8	)	$	439	$	—

Cash and non-cash movements in financial liabilities comprise:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Cash movements:
Interest paid	$	(19	)	$	(17	)	(20		)	(17		)
Issuance of debt	350			—			350			—
Debt issuance costs	(4		)	—			(4		)	—
Accounts receivable securitization drawings	2			—			82			—
	329			(17		)	408			(17		)
Non-cash movements:
Amortization of debt issue costs	—			—			1			1
Interest expense	12			9			22			16
Debt issuance costs	(2		)	—			(2		)	—
Costs on early extinguishment of 2020 Notes	10			—			10			—
	20			9			31			17
Net increase (decrease) in financial liabilities	$	349		$	(8	)	$	439		$	—

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FINANCIAL INSTRUMENTS

6 Months Ended

Jul. 06, 2019

Financial Instruments [Abstract]

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS

Non-Derivative Financial Instruments

The net book values and fair values of non-derivative financial instruments were as follows:

		Jul 6, 2019				Dec 31, 2018
(US $ millions)	Financial Instrument Category	Net Book Value		Fair Value		Net Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Fair value through profit or loss	$	315	$	315	$	128	$	128
Accounts receivable	Amortised cost	136		136		149		149
Other assets(2)	Amortised cost	1		1		1		1
		$	452	$	452	$	278	$	278
Financial liabilities:
Accounts payable and accrued liabilities	Amortised cost	$	220	$	220	$	293	$	293
Accrued early debt extinguishment costs	Amortised cost	9		9		—		—
Accrued liability under ASPP	Amortised cost	—		—		42		42
Long-term debt(1)	Amortised cost	905		936		555		556
Other long-term debt	Amortised cost	82		82		—		—
Other liabilities(2)	Amortised cost	12		12		12		12
		$	1,228	$	1,259	$	902	$	903

⁽¹⁾  Principal value of long-term debt excluding debt issue costs of $9 million (2018 – $5 million) (note 5).

⁽²⁾  Excludes lease obligations and defined benefit pension asset and obligations scoped out of IFRS 9, Financial instruments (note 6).

The carrying values of the Company's non-derivative financial instruments approximate fair value, except where disclosed below.

Derivative Financial Instruments

Canadian Dollar Monetary Hedge

At period-end, the Company had foreign currency forward contracts representing a notional amount of C $22 million (December 31, 2018 – C $143 million) in place to sell US dollars and buy Canadian dollars with maturities in July 2019. The fair value of these contracts at period-end is an unrealized loss of less than $1 million (December 31, 2018 – an unrealized loss of $3 million); the carrying value of the derivative instrument is equivalent to the unrealized loss at period-end. During the quarter, net realized losses on the Company's matured hedges were $1 million (2018 – net realized losses of $1 million). Year-to-date, net realized gains on the Company's matured hedges were less than $1 million (2018 – net realized losses of $1 million).

Euro Cash Flow Hedge

At period-end, the Company had foreign currency options representing a notional amount of €30 million (December 31, 2018 – €30 million) in place to buy Pounds Sterling and sell Euros with maturities between July to December 2019. The fair value of these contracts at period-end is an unrealized loss of less than $1 million (December 31, 2018 – unrealized gain of less than $1 million). During the quarter, net realized losses on the Company's matured hedges were less than $1 million (2018 – less than $1 million). Year-to-date, net realized losses on the Company's matured hedges were less than $1 million (2018 – less than $1 million).

Derivative instruments are measured at fair value as determined using valuation techniques under Level 2 of the fair value hierarchy. The fair values of over-the-counter derivative financial instruments are based on broker quotes or observable market rates. Those quotes are tested for reasonableness by discounting expected future cash flows using market interest and exchange rates for a similar instrument at the measurement date. Fair values reflect the credit risk of the instrument for the Company and counterparty when appropriate. Realized and unrealized gains and losses on derivative financial instruments are offset by realized and unrealized losses and gains on the underlying exposures being hedged and are recorded in earnings as they occur.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jul. 06, 2019

Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

The Company has provided certain guarantees, commitments and indemnifications, including those related to former businesses. The maximum amounts from many of these items cannot be reasonably estimated at this time. However, in certain circumstances, the Company has recourse against other parties to mitigate the risk of loss. In the normal course of its business activities, the Company is subject to claims and legal actions that may be made by its customers, suppliers and others. While the final outcome with respect to actions outstanding or pending as at period-end cannot be predicted with certainty, the Company believes the resolution will not have a material effect on the Company’s financial position, financial performance, or cash flows.

The Company has entered into various commitments as follows:

	Payments Due by Period
(US $ millions)	Less than 1 Year		1–5 Years		Thereafter		Total
Purchase commitments	$	37	$	47	$	45	$	129
Lease obligations	9		12		5		26
Reforestation obligations	1		2		1		4
	$	47	$	61	$	51	$	159

Purchase commitments relate to the purchase of property, plant and equipment and long-term purchase contracts with minimum fixed payment amounts.

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jul. 06, 2019

Related Party [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

In the normal course of operations, Norbord enters into various transactions with related parties which have been measured at exchange value and recognized in the interim financial statements. The following transactions have occurred between Norbord and its related parties during the normal course of business.

Brookfield

Norbord periodically engages the services of Brookfield for various financial, real estate and other business services. During the quarter and year-to-date, the fees for services rendered were less than $1 million (2018 – less than $1 million).

Other

Sales to Asian markets are handled by Interex Forest Products Ltd. (Interex), a cooperative sales company over which Norbord, as a 25% shareholder, has significant influence. During the quarter, net sales of $17 million (2018 – $26 million) were made to Interex. Year-to-date, net sales of $35 million (2018 – $49 million) were made to Interex. At period-end, $5 million (December 31, 2018 – $2 million) due from Interex was included in accounts receivable. At period-end, the investment in Interex was less than $1 million (December 31, 2018 – less than $1 million) and is included in other assets.

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GEOGRAPHIC SEGMENTS

6 Months Ended

Jul. 06, 2019

Operating Segments [Abstract]

GEOGRAPHIC SEGMENTS

GEOGRAPHIC SEGMENTS

The Company operates principally in North America and Europe. Sales by geographic segment are determined based on the origin of shipment.

								Q2 2019
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	317	$	130	$	—		$	447
EBITDA(1)	15		21		(4		)	32
Depreciation and amortization	28		6		—			34
Additions to property, plant and equipment	19		10		—			29
								Q2 2018
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	577	$	130	$	—		$	707
EBITDA(1)	256		21		(5		)	272
Depreciation and amortization	30		6		—			36
Additions to property, plant and equipment	48		5		—			53
								6 mos 2019
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	647	$	276	$	—		$	923
EBITDA(1)	38		42		(7		)	73
Depreciation and amortization	56		13		—			69
Additions to property, plant and equipment	44		15		—			59
Property, plant and equipment	1,162		248		—			1,410
								6 mos 2018
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	1,025	$	258	$	—		$	1,283
EBITDA(1)	412		39		(10		)	441
Depreciation and amortization	55		11		—			66
Additions to property, plant and equipment	93		10		—			103
Property, plant and equipment(2)	1,159		243		—			1,402

⁽¹⁾  EBITDA is a non-IFRS financial measure, which the Company uses to assess segment performance and operating results. The Company defines EBITDA as earnings before finance costs, interest income, income tax, depreciation and amortization, and costs on early extinguishment of debt. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

⁽²⁾  Balance as at December 31, 2018.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jul. 06, 2019

Significant Accounting Policies [Abstract]

Description of accounting policy for leases [text block]

The following practical expedients were also applied upon transition to IFRS 16:

• excluded initial direct costs from the measurement of ROU assets at the date of initial application;

• used hindsight when determining the lease term where the contract contains options to extend or terminate the lease;

• used a single discount rate on a portfolio of leases with similar characteristics.

The application of the above practical expedients did not result in any impact to retained earnings.

The revised accounting policy is as follows:

At inception of a contract, Norbord will assess whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. When a contract contains a lease, Norbord will recognize an ROU asset and a lease obligation at commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability less adjustments. ROU assets are recorded at cost less accumulated depreciation, and are depreciated on a straight-line basis over the shorter of the estimated useful life of the ROU asset or the lease term, and would be adjusted for certain remeasurements of the lease liability. When events or changes in circumstances are identified which may indicate that their carrying amount is less than the recoverable amount, ROU assets would be reviewed for impairment as described in note 2(h) of Norbord's 2018 audited annual financial statements.

Lease liabilities are initially measured at the net present value of lease payments outstanding at lease commencement, discounted using the interest rate implicit in the lease or, if not readily determinable, Norbord's estimated incremental borrowing rate commensurate with the lease term. Subsequently, lease liabilities are measured at amortized cost using the effective interest method and remeasured to reflect any reassessment of options or lease modifications, or to reflect changes in lease payments, with a corresponding adjustment to the ROU asset or statement of earnings if the ROU asset has been reduced to zero. Judgement has been applied in determining the lease term for contracts with renewal options and whether Norbord is reasonably certain to exercise such options. The impact on the lease term resulting from this assessment could impact the amount of lease liabilities and ROU assets recognized.

Statement of Compliance

Statement of Compliance

These interim financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting, on a basis consistent with the accounting policies Norbord disclosed in its audited consolidated financial statements as at, and for the year ended, December 31, 2018 unless noted otherwise in note 2(c). These interim financial statements do not contain all of the disclosures that are required in annual financial statements prepared under International Financial Reporting Standards (IFRS) and should be read in conjunction with Norbord’s 2018 audited annual financial statements which include information necessary or useful to understanding Norbord’s business and financial statement presentation. Norbord’s interim results are not necessarily indicative of its results for a full year.

These interim financial statements were authorized for issuance by the Board of Directors of the Company on July 31, 2019.

Basis of Measurement

(b)      Basis of Presentation

These interim financial statements include the accounts of the Company and all of its wholly-owned subsidiaries.

Measurement of Fair Value

Derivative instruments are measured at fair value as determined using valuation techniques under Level 2 of the fair value hierarchy. The fair values of over-the-counter derivative financial instruments are based on broker quotes or observable market rates. Those quotes are tested for reasonableness by discounting expected future cash flows using market interest and exchange rates for a similar instrument at the measurement date. Fair values reflect the credit risk of the instrument for the Company and counterparty when appropriate. Realized and unrealized gains and losses on derivative financial instruments are offset by realized and unrealized losses and gains on the underlying exposures being hedged and are recorded in earnings as they occur.

Changes in Accounting Policies

Changes in Accounting Policies

(i) Leases

In January 2016, the International Accounting Standards Board (IASB) issued IFRS 16, Leases (IFRS 16), which requires all leases to be reported on the balance sheet unless certain criteria for exclusion are met. IFRS 16 became effective for Norbord on January 1, 2019 and has been applied using the modified retrospective approach under which the cumulative effect of initial application was recognized in retained earnings as at January 1, 2019. As a result, comparative information has not been restated and is reported under IAS 17, Leases (IAS 17).

Upon transition to IFRS 16, Norbord recognized $24 million of lease liabilities and corresponding right-of-use (ROU) assets. Norbord elected the practical expedient to apply IFRS 16 only to contracts previously identified as leases under IAS 17. The lease liabilities for leases previously identified as operating leases under IAS 17 were measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate as at January 1, 2019, and have been included in accounts payable and accrued liabilities (current portion) and other liabilities (non-current portion). The weighted average incremental borrowing rate applied to these lease liabilities on January 1, 2019 was 4.6%. There were no material differences from the operating lease commitments disclosed in Norbord's 2018 audited annual financial statements. ROU assets related to these leases were measured at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments, and have been included in property, plant and equipment (note 7).

The carrying amounts of $3 million as at January 1, 2019 of the ROU assets and lease liabilities for leases previously classified as finance leases under IAS 17 have been determined to be the carrying amounts of the lease assets and lease liabilities measured under IAS 17 immediately before that date.

The following practical expedients were also applied upon transition to IFRS 16:

• excluded initial direct costs from the measurement of ROU assets at the date of initial application;

• used hindsight when determining the lease term where the contract contains options to extend or terminate the lease;

• used a single discount rate on a portfolio of leases with similar characteristics.

The application of the above practical expedients did not result in any impact to retained earnings.

The revised accounting policy is as follows:

At inception of a contract, Norbord will assess whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. When a contract contains a lease, Norbord will recognize an ROU asset and a lease obligation at commencement date. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability less adjustments. ROU assets are recorded at cost less accumulated depreciation, and are depreciated on a straight-line basis over the shorter of the estimated useful life of the ROU asset or the lease term, and would be adjusted for certain remeasurements of the lease liability. When events or changes in circumstances are identified which may indicate that their carrying amount is less than the recoverable amount, ROU assets would be reviewed for impairment as described in note 2(h) of Norbord's 2018 audited annual financial statements.

Lease liabilities are initially measured at the net present value of lease payments outstanding at lease commencement, discounted using the interest rate implicit in the lease or, if not readily determinable, Norbord's estimated incremental borrowing rate commensurate with the lease term. Subsequently, lease liabilities are measured at amortized cost using the effective interest method and remeasured to reflect any reassessment of options or lease modifications, or to reflect changes in lease payments, with a corresponding adjustment to the ROU asset or statement of earnings if the ROU asset has been reduced to zero. Judgement has been applied in determining the lease term for contracts with renewal options and whether Norbord is reasonably certain to exercise such options. The impact on the lease term resulting from this assessment could impact the amount of lease liabilities and ROU assets recognized.

Norbord has elected not to recognize ROU assets and lease liabilities for leases with terms of less than 12 months and leases of low-value assets. Lease payments associated with these leases are recognized in earnings as an expense on a straight-line basis over the lease term.

(ii) Uncertainty over Income Tax Treatments

In June 2017, the IFRS Interpretations Committee of the IASB issued IFRIC 23, Uncertainty over Income Tax Treatments (IFRIC 23). The interpretation provides guidance on the accounting for current and deferred tax liabilities and assets in circumstances in which there is uncertainty over income tax treatments. The interpretation became effective for Norbord on January 1, 2019 and did not have any impact on its interim financial statements.

(iii) Financial Instruments

In October 2017, the IASB issued amendments to IFRS 9 with regards to prepayment features with negative compensation. These amendments clarify that a financial asset containing prepayment features with negative compensation may be measured at amortized cost or fair value through other comprehensive income when eligibility conditions are met. The amendments became effective for Norbord on January 1, 2019 and did not have any impact on its interim financial statements.

(iv) Employee Benefits

In February 2018, the IASB issued amendments to IAS 19, Employee Benefits. The amendments clarify the actuarial assumptions to be used for defined benefit pension plans upon plan amendment, curtailment or settlement. These amendments became effective for Norbord on January 1, 2019 and did not have a significant impact on its interim financial statements.

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INVENTORY (Tables)

6 Months Ended

Jul. 06, 2019

Inventories [Abstract]

Disclosure of inventory

(US $ millions)	Jul 6, 2019		Dec 31, 2018
Raw materials	$	74	$	72
Finished goods	74		69
Operating and maintenance supplies	86		79
	$	234	$	220

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LONG-TERM DEBT (Tables)

6 Months Ended

Jul. 06, 2019

Financial Instruments [Abstract]

Disclosure of detailed information about borrowings

(US $ millions)	Jul 6, 2019			Dec 31, 2018
Principal value
5.375% senior secured notes due December 2020	$	240		$	240
6.25% senior secured notes due April 2023	315			315
5.75% senior secured notes due July 2027	350			—
	905			555
Less: Unamortized debt issue costs	(9		)	(5		)
Less: Current portion	(240		)	—
	$	656		$	550

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OTHER LIABILITIES (Tables)

6 Months Ended

Jul. 06, 2019

Subclassifications of assets, liabilities and equities [abstract]

Disclosure of other liabilities

(US $ millions)	Jul 6, 2019		Dec 31, 2018
Defined benefit pension obligations	$	24	$	20
Lease obligations	13		2
Accrued employee benefits	7		6
Reforestation obligations	4		2
Unrealized monetary hedge loss	—		3
Other	1		1
	$	49	$	34

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LEASES (Tables)

6 Months Ended

Jul. 06, 2019

Leases [Abstract]

Disclosure of quantitative information about right-of-use assets

Information about Norbord's ROU assets included in property, plant and equipment is as follows:

(US $ millions)	Land		Buildings		Production Equipment			Total
January 1, 2019	$	3	$	4	$	17		$	24
Additions	—		—		2			2
Depreciation	—		—		(5		)	(5		)
July 6, 2019	$	3	$	4	$	14		$	21

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SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Jul. 06, 2019

Share Capital, Reserves, And Other Equity Interest [Abstract]

Disclosure of classes of share capital

	6 mos 2019					6 mos 2018
	Shares (millions)		Amount (US $ millions)			Shares (millions)	Amount (US $ millions)
Common shares outstanding, beginning of period	81.7		$	1,280		86.4	$	1,350
Issuance of common shares upon exercise of options and DRIP	—		—			0.3	6
Reverse accrual for shares to be repurchased and/or cancelled in 2019	1.6		24			—	—
Shares repurchased in 2018 and cancelled in 2019	(0.2	)	(2		)	—	—
Shares repurchased and cancelled in 2019	(1.4	)	(22		)	—	—
Common shares outstanding, end of period	81.7		$	1,280		86.7	$	1,356

Disclosure of accumulated other comprehensive income (loss)

(US $ millions)	Jul 6, 2019			Dec 31, 2018
Foreign currency translation loss on foreign operations, net of tax of $(3)  (December 31, 2018 – $(5))	$	(165	)	$	(159	)
Net loss on hedge of net investment in foreign operations, net of tax of $3 (December 31, 2018 – $3)	(8		)	(8		)
Actuarial loss on defined benefit pension obligations, net of tax of $11 (December 31, 2018 – $9)	(35		)	(30		)
Accumulated other comprehensive loss, net of tax	$	(208	)	$	(197	)

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INCOME TAX (Tables)

6 Months Ended

Jul. 06, 2019

Income Taxes [Abstract]

Disclosure of major components of tax expense (income)

Income tax recovery (expense) recognized in the statement of earnings comprises the following:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Current income tax recovery (expense)	$	21		$	(25	)	$	47		$	(58	)
Deferred income tax expense	(11		)	(28		)	(32		)	(31		)
	$	10		$	(53	)	$	15		$	(89	)

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EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Jul. 06, 2019

Earnings per share [abstract]

Disclosure of earnings per share

(US $ millions, except share and per share information, unless otherwise noted)	Q2 2019			Q2 2018		6 mos 2019			6 mos 2018
(Loss) earnings available to common shareholders	$	(14	)	$	174	$	(13	)	$	269
Common shares (millions):
Weighted average number of common shares outstanding	81.7			86.6		81.9			86.5
Dilutive stock options(1)	—			0.6		—			0.5
Diluted number of common shares	81.7			87.2		81.9			87.0
(Loss) earnings per common share:
Basic	$	(0.17	)	$	2.01	$	(0.16	)	$	3.11
Diluted	(0.17		)	2.00		(0.16		)	3.09

⁽¹⁾  Applicable if dilutive and when the weighted average daily closing share price for the period was greater than the exercise price for stock options. For the quarter and year-to-date period, there were 0.7 million stock options (quarter and year-to-date period ended June 30, 2018 – nil) that were not taken into account in the calculation of diluted earnings per share because their effect was anti-dilutive.

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SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

6 Months Ended

Jul. 06, 2019

Cash Flow Statement [Abstract]

Disclosure of supplemental cash flow statement items

Other items comprise:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Stock-based compensation	$	1		$	1		$	2		$	2
Pension funding greater than expense	(1		)	(1		)	(2		)	(2		)
Cash interest paid (more) less than interest expense	(8		)	(8		)	1			—
Amortization of debt issue costs	—			—			1			1
Unrealized (gain) loss on outstanding currency forwards	(3		)	1			—			1
Unrealized foreign exchange loss (gain) on translation of monetary balances	—			—			4			(2		)
Other	—			2			1			2
	$	(11	)	$	(5	)	$	7		$	2

The net change in non-cash operating working capital balances comprises:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Cash provided by (used for):
Accounts receivable	$	37		$	(29	)	$	8		$	(43	)
Prepaids	(2		)	1			—			2
Inventory	25			12			(14		)	(24		)
Accounts payable and accrued liabilities	(21		)	35			(66		)	(9		)
	$	39		$	19		$	(72	)	$	(74	)

Cash interest and income taxes comprise:

(US $ millions)	Q2 2019		Q2 2018			6 mos 2019			6 mos 2018
Cash interest paid	$	19	$	17		$	20		$	17
Cash interest received	—		(1		)	(1		)	(1		)
Cash income taxes paid	16		28			66			101
Cash income taxes received	—		—			(15		)	(3		)

The net change in financial liabilities comprises:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019		6 mos 2018
Long-term debt	$	346		$	—		$	346	$	1
Other long-term debt	2			—			82		—
Accrued interest on long-term debt	(8		)	(8		)	2		(1		)
Costs on early extinguishment of 2020 Notes	9			—			9		—
Net increase (decrease) in financial liabilities	$	349		$	(8	)	$	439	$	—

Cash and non-cash movements in financial liabilities comprise:

(US $ millions)	Q2 2019			Q2 2018			6 mos 2019			6 mos 2018
Cash movements:
Interest paid	$	(19	)	$	(17	)	(20		)	(17		)
Issuance of debt	350			—			350			—
Debt issuance costs	(4		)	—			(4		)	—
Accounts receivable securitization drawings	2			—			82			—
	329			(17		)	408			(17		)
Non-cash movements:
Amortization of debt issue costs	—			—			1			1
Interest expense	12			9			22			16
Debt issuance costs	(2		)	—			(2		)	—
Costs on early extinguishment of 2020 Notes	10			—			10			—
	20			9			31			17
Net increase (decrease) in financial liabilities	$	349		$	(8	)	$	439		$	—

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FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jul. 06, 2019

Financial Instruments [Abstract]

Disclosure of net book values and fair values of non-derivative financial assets

The net book values and fair values of non-derivative financial instruments were as follows:

		Jul 6, 2019				Dec 31, 2018
(US $ millions)	Financial Instrument Category	Net Book Value		Fair Value		Net Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Fair value through profit or loss	$	315	$	315	$	128	$	128
Accounts receivable	Amortised cost	136		136		149		149
Other assets(2)	Amortised cost	1		1		1		1
		$	452	$	452	$	278	$	278
Financial liabilities:
Accounts payable and accrued liabilities	Amortised cost	$	220	$	220	$	293	$	293
Accrued early debt extinguishment costs	Amortised cost	9		9		—		—
Accrued liability under ASPP	Amortised cost	—		—		42		42
Long-term debt(1)	Amortised cost	905		936		555		556
Other long-term debt	Amortised cost	82		82		—		—
Other liabilities(2)	Amortised cost	12		12		12		12
		$	1,228	$	1,259	$	902	$	903

⁽¹⁾  Principal value of long-term debt excluding debt issue costs of $9 million (2018 – $5 million) (note 5).

Disclosure of net book values and fair values of non-derivative financial liabilities

The net book values and fair values of non-derivative financial instruments were as follows:

		Jul 6, 2019				Dec 31, 2018
(US $ millions)	Financial Instrument Category	Net Book Value		Fair Value		Net Book Value		Fair Value
Financial assets:
Cash and cash equivalents	Fair value through profit or loss	$	315	$	315	$	128	$	128
Accounts receivable	Amortised cost	136		136		149		149
Other assets(2)	Amortised cost	1		1		1		1
		$	452	$	452	$	278	$	278
Financial liabilities:
Accounts payable and accrued liabilities	Amortised cost	$	220	$	220	$	293	$	293
Accrued early debt extinguishment costs	Amortised cost	9		9		—		—
Accrued liability under ASPP	Amortised cost	—		—		42		42
Long-term debt(1)	Amortised cost	905		936		555		556
Other long-term debt	Amortised cost	82		82		—		—
Other liabilities(2)	Amortised cost	12		12		12		12
		$	1,228	$	1,259	$	902	$	903

⁽¹⁾  Principal value of long-term debt excluding debt issue costs of $9 million (2018 – $5 million) (note 5).

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COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jul. 06, 2019

Other Provisions, Contingent Liabilities And Contingent Assets [Abstract]

Disclosure of commitments

The Company has entered into various commitments as follows:

	Payments Due by Period
(US $ millions)	Less than 1 Year		1–5 Years		Thereafter		Total
Purchase commitments	$	37	$	47	$	45	$	129
Lease obligations	9		12		5		26
Reforestation obligations	1		2		1		4
	$	47	$	61	$	51	$	159

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GEOGRAPHIC SEGMENTS (Tables)

6 Months Ended

Jul. 06, 2019

Operating Segments [Abstract]

Disclosure of geographical segments

								Q2 2019
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	317	$	130	$	—		$	447
EBITDA(1)	15		21		(4		)	32
Depreciation and amortization	28		6		—			34
Additions to property, plant and equipment	19		10		—			29
								Q2 2018
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	577	$	130	$	—		$	707
EBITDA(1)	256		21		(5		)	272
Depreciation and amortization	30		6		—			36
Additions to property, plant and equipment	48		5		—			53
								6 mos 2019
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	647	$	276	$	—		$	923
EBITDA(1)	38		42		(7		)	73
Depreciation and amortization	56		13		—			69
Additions to property, plant and equipment	44		15		—			59
Property, plant and equipment	1,162		248		—			1,410
								6 mos 2018
(US $ millions)	North America		Europe		Unallocated			Total
Sales	$	1,025	$	258	$	—		$	1,283
EBITDA(1)	412		39		(10		)	441
Depreciation and amortization	55		11		—			66
Additions to property, plant and equipment	93		10		—			103
Property, plant and equipment(2)	1,159		243		—			1,402

⁽¹⁾  EBITDA is a non-IFRS financial measure, which the Company uses to assess segment performance and operating results. The Company defines EBITDA as earnings before finance costs, interest income, income tax, depreciation and amortization, and costs on early extinguishment of debt. Non-IFRS financial measures do not have any standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies.

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NATURE AND DESCRIPTION OF THE COMPANY (Details)	6 Months Ended
	Jul. 06, 2019 property
Disclosure of subsidiaries [line items]
Number of plant locations	17
Brookfield | Norbord
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary	43.00%

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SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Millions	6 Months Ended
	Jul. 06, 2019	Jan. 01, 2019
Disclosure of detailed information about property, plant and equipment [line items]
Operating lease liabilities		$ 24
Statement that entity has chosen practical expedient when assessing whether contract is, or contains, lease at date of initial application of IFRS 16	Norbord elected the practical expedient to apply IFRS 16 only to contracts previously identified as leases under IAS 17. The lease liabilities for leases previously identified as operating leases under IAS 17 were measured at the present value of the remaining lease payments, discounted using the Company’s incremental borrowing rate as at January 1, 2019, and have been included in accounts payable and accrued liabilities (current portion) and other liabilities (non-current portion).
Operating lease, right of use assets		24
Finance lease ROU assets		3
Finance lease liabilities		$ 3
Weighted average lessee's incremental borrowing rate applied to lease liabilities recognised at date of initial application of IFRS 16		4.60%

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(Details) - USD ($)	6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Dec. 31, 2018
Disclosure of continuing involvement in derecognised financial assets [line items]
Termination notice of accounts receivable securitization program	12 months
Recognised other long-term debt relating to financing program	$ 82,000,000		$ 0
Securitisations
Disclosure of continuing involvement in derecognised financial assets [line items]
Recognised assets representing continuing involvement in derecognised financial assets, program amount	125,000,000
Recognised trade accounts receivable transferred	117,000,000		123,000,000
Recognised other long-term debt relating to financing program	$ 82,000,000		$ 0
Minimum
Disclosure of continuing involvement in derecognised financial assets [line items]
Utilisation rate on other long-term debt within securitization program	1.60%
Maximum
Disclosure of continuing involvement in derecognised financial assets [line items]
Utilisation rate on other long-term debt within securitization program	4.00%	0.00%

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INVENTORY (Details) - USD ($) $ in Millions	Jul. 06, 2019	Dec. 31, 2018
Inventories [Abstract]
Raw materials	$ 74	$ 72
Finished goods	74	69
Operating and maintenance supplies	86	79
Inventory	234	220
Inventory provision	$ 15	$ 20

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LONG-TERM DEBT - Values of Debt (Details) - USD ($)	Jul. 06, 2019	Jun. 24, 2019	Dec. 31, 2018
Disclosure of detailed information about borrowings [line items]
Principal value	$ 905,000,000		$ 555,000,000
Less: Unamortized debt issue costs	(9,000,000)		(5,000,000)
Less: Current portion	(240,000,000)		0
Long-term debt	$ 656,000,000		550,000,000
5.375% senior secured notes due December 2020
Disclosure of detailed information about borrowings [line items]
Borrowings, interest rate	5.375%
Principal value	$ 240,000,000		240,000,000
6.25% senior secured notes due April 2023
Disclosure of detailed information about borrowings [line items]
Borrowings, interest rate	6.25%
Principal value	$ 315,000,000		315,000,000
5.75% senior secured notes due June 2027
Disclosure of detailed information about borrowings [line items]
Borrowings, interest rate	5.75%	5.75%
Principal value	$ 350,000,000	$ 350,000,000	$ 0

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LONG-TERM DEBT - Narrative (Details) - USD ($)		3 Months Ended		6 Months Ended
	Jul. 17, 2019	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018	Jun. 24, 2019	Dec. 31, 2018
Disclosure of detailed information about borrowings [line items]
Borrowings		$ 905,000,000		$ 905,000,000			$ 555,000,000
Gain (loss) arising from difference between carrying amount of financial liability extinguished and consideration paid		(10,000,000)	$ 0	(10,000,000)	$ 0
5.75% senior secured notes due June 2027
Disclosure of detailed information about borrowings [line items]
Borrowings		$ 350,000,000		$ 350,000,000		$ 350,000,000	0
Borrowings, interest rate		5.75%		5.75%		5.75%
Borrowing costs incurred				$ 6,000,000
5.375% senior secured notes due December 2020
Disclosure of detailed information about borrowings [line items]
Borrowings		$ 240,000,000		$ 240,000,000			240,000,000
Borrowings, interest rate		5.375%		5.375%
6.25% senior secured notes due April 2023
Disclosure of detailed information about borrowings [line items]
Borrowings		$ 315,000,000		$ 315,000,000			315,000,000
Borrowings, interest rate		6.25%		6.25%
Revolving Bank Line
Disclosure of detailed information about borrowings [line items]
Maximum borrowing capacity		$ 245,000,000		$ 245,000,000
Undrawn borrowing facilities		0		0			0
Letters of credit		9,000,000		9,000,000			8,000,000
Unutilized borrowing facilities		236,000,000		236,000,000			$ 237,000,000
Minimum tangible net worth		$ 500,000,000		$ 500,000,000
Maximum net debt to total capitalization				65.00%
Premium on early debt redemption
Disclosure of detailed information about borrowings [line items]
Gain (loss) arising from difference between carrying amount of financial liability extinguished and consideration paid				$ 9,000,000
Write-off debt financing costs on early debt redemption [Member]
Disclosure of detailed information about borrowings [line items]
Gain (loss) arising from difference between carrying amount of financial liability extinguished and consideration paid				$ 1,000,000
Subsequent Event | 5.375% senior secured notes due December 2020
Disclosure of detailed information about borrowings [line items]
Redemption of debt	$ 240,000,000

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OTHER LIABILITIES (Details) - USD ($) $ in Millions	Jul. 06, 2019	Dec. 31, 2018
Subclassifications of assets, liabilities and equities [abstract]
Defined benefit pension obligation	$ 24	$ 20
Non-current lease liabilities	13	2
Accrued employee benefits	7	6
Reforestation obligations	4	2
Unrealized monetary hedge loss	0	3
Other	1	1
Other liabilities	$ 49	$ 34

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LEASES - ROU assets (Details) $ in Millions	6 Months Ended
	Jul. 06, 2019 USD ($)
Right-of-Use Assets [Roll Forward]
January 1, 2019	$ 24
Additions	2
Depreciation	(5)
Jul 6, 2019	21
Land
Right-of-Use Assets [Roll Forward]
January 1, 2019	3
Additions	0
Depreciation	0
Jul 6, 2019	3
Buildings
Right-of-Use Assets [Roll Forward]
January 1, 2019	4
Additions	0
Depreciation	0
Jul 6, 2019	4
Production Equipment
Right-of-Use Assets [Roll Forward]
January 1, 2019	17
Additions	2
Depreciation	(5)
Jul 6, 2019	$ 14

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LEASES - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jul. 06, 2019	Jul. 06, 2019
Leases [Abstract]
Payments related to short term leases	$ 1	$ 1
Interest expense on lease liabilities		1
Cash outflow for leases	$ 3	$ 7
Information about lessee's exposure arising from residual value guarantees		1000000

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SHAREHOLDERS' EQUITY - Share Capital (Details) $ in Millions	3 Months Ended			6 Months Ended
	Jul. 06, 2019 USD ($) shares	Apr. 06, 2019 USD ($) shares	Jun. 30, 2018 USD ($) shares	Jul. 06, 2019 USD ($) shares	Jun. 30, 2018 USD ($) shares
Changes in equity [abstract]
Balance, beginning of period		$ 823		$ 823
Balance, end of period	$ 749		$ 1,206	$ 749	$ 1,206
Share capital
Reconciliation of number of shares outstanding [abstract]
Common shares outstanding, beginning of year (in shares) | shares		81,700,000		81,700,000	86,400,000
Issuance of common shares upon exercise of options and DRIP (in shares) | shares				12,152	300,000
Reverse accrual for shares to be purchased and/or cancelled in 2019 (in shares) | shares				1,600,000	0
Shares repurchased in 2018 and cancelled in 2019 (in shares) | shares				(200,000)	0
Shares repurchased and cancelled in 2019 (in shares) | shares				(1,400,000)	0
Common shares outstanding, end of year (in shares) | shares	81,700,000		86,700,000	81,700,000	86,700,000
Changes in equity [abstract]
Balance, beginning of period	$ 1,280	$ 1,280	$ 1,353	$ 1,280	$ 1,350
Issue of common shares upon exercise of options and DRIP	0		3	0	6
Reverse accrual for shares to be repurchased and/or cancelled in 2019				24	0
Shares repurchased in 2018 and cancelled in 2019				(2)	0
Cancellation of treasury shares				(22)	0
Balance, end of period	$ 1,280	$ 1,280	$ 1,356	$ 1,280	$ 1,356

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SHAREHOLDERS' EQUITY SHAREHOLDERS' EQUITY - Narrative (Details) $ in Millions	3 Months Ended			6 Months Ended
	Jul. 06, 2019 USD ($)	Apr. 06, 2019 USD ($) shares	Jun. 30, 2018 USD ($)	Jul. 06, 2019 USD ($) shares	Jun. 30, 2018 USD ($) shares	Oct. 22, 2018 shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Dividends reinvested				$ 0	$ 1
Options granted (in shares) | shares					200,000.0
Proceeds from exercise of options				1	$ 4
Stock options exercised				$ 1	$ 1
Share capital
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of shares repurchased and cancelled (in shares) | shares				(1,400,000)	0
Cancellation of treasury shares	$ 0		$ 0	$ (24)	$ 0
Number of shares purchased and accrued for in prior year and cancelled in current year (in shares) | shares				(200,000)	0
Number of share options exercised in share-based payment arrangement (in shares) | shares				12,152	300,000
Retained earnings
Disclosure of terms and conditions of share-based payment arrangement [line items]
Cancellation of treasury shares	$ 0		$ 0	$ (19)	$ 0
Employee Stock Option
Disclosure of terms and conditions of share-based payment arrangement [line items]
Options granted (in shares)				0
Share-based payments				$ 1	$ 1
Normal Course Issuer Bid Program
Disclosure of terms and conditions of share-based payment arrangement [line items]
Repurchase program, authorized amount | shares						5,191,965
Percentage ownership						10.00%
Automatic Share Purchase Plan
Disclosure of terms and conditions of share-based payment arrangement [line items]
Number of shares repurchased and cancelled (in shares) | shares		1,400,000
Cancellation of treasury shares		$ 39
Number of shares purchased and accrued for in prior year and cancelled in current year (in shares) | shares		200,000
Purchase of treasury shares		$ 4
Automatic Share Purchase Plan | Share capital
Disclosure of terms and conditions of share-based payment arrangement [line items]
Cancellation of treasury shares		22
Purchase of treasury shares		2
Automatic Share Purchase Plan | Retained earnings
Disclosure of terms and conditions of share-based payment arrangement [line items]
Cancellation of treasury shares		17
Purchase of treasury shares		$ (2)

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SHAREHOLDERS' EQUITY - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jul. 06, 2019	Dec. 31, 2018	Apr. 06, 2019	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
Disclosure of analysis of other comprehensive income by item [line items]
Accumulated other comprehensive loss, net of tax	$ 749	$ 823		$ 1,206
Accumulated other comprehensive loss
Disclosure of analysis of other comprehensive income by item [line items]
Foreign currency translation loss on investment in foreign operations, net of tax of $(3) (December 31, 2015 – $(10))	(165)	(159)
Net loss on hedge of net investment in foreign operations, net of tax of $3 (December 31, 2015 – $3)	(8)	(8)
Actuarial loss on defined benefit pension obligation, net of tax	(35)	(30)
Accumulated other comprehensive loss, net of tax	(208)	(197)	$ (192)	$ (182)	$ (165)	$ (176)
Tax	(3)	(5)
Income tax relating to hedges of net investments in foreign operations	3	3
Income tax relating to actuarial loss on defined benefit pension obligation	$ 11	$ 9

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100 MILE HOUSE INDEFINITE CURTAILMENT ANNOUNCEMENT (Details) $ in Millions	12 Months Ended
	Dec. 31, 2018 USD ($)
Disclosure of impairment of assets [Abstract]
Impairment loss	$ 80

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INCOME TAX - Income Tax Components (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018
Income Taxes [Abstract]
Current income tax recovery (expense)	$ 21	$ (25)	$ 47	$ (58)
Deferred income tax expense	(11)	(28)	(32)	(31)
Income tax expense	$ 10	$ (53)	$ 15	$ (89)

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EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018
Earnings per share [abstract]
(Loss) earnings available to common shareholders	$ (14)	$ 174	$ (13)	$ 269
Common shares (millions):
Weighted average number of common shares outstanding	81.7	86.6	81.9	86.5
Dilutive stock options (in shares)	0.0	0.6	0.0	0.5
Diluted number of common shares	81.7	87.2	81.9	87.0
(Loss) earnings per common share:
Basic (in dollars per share)	$ (0.17)	$ 2.01	$ (0.16)	$ 3.11
Diluted (in dollars per share)	$ (0.17)	$ 2.00	$ (0.16)	$ 3.09

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EARNINGS PER COMMON SHARE - Narrative (Details) - shares shares in Millions	Jul. 06, 2019	Jun. 30, 2018
Earnings per share [abstract]
Antidilutive securities (in shares)	0.7	0.0

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SUPPLEMENTAL CASH FLOW INFORMATION - Other Items (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018
Cash Flow Statement [Abstract]
Stock-based compensation	$ 1	$ 1	$ 2	$ 2
Pension funding (greater) less than expense	(1)	(1)	(2)	(2)
Cash interest paid less than interest expense	(8)	(8)	1	0
Amortization of debt issue costs	0	0	1	1
Unrealized (gain) loss on outstanding currency forwards	(3)	1	0	1
Unrealized foreign exchange loss (gain) on translation of monetary balances	0	0	4	(2)
Other	0	2	1	2
Other items	$ (11)	$ (5)	$ 7	$ 2

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SUPPLEMENTAL CASH FLOW INFORMATION - Net Change in Non-Cash Working Capital (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018
Cash (used for) provided by:
Accounts receivable	$ 37	$ (29)	$ 8	$ (43)
Prepaids	(2)	1	0	2
Inventory	25	12	(14)	(24)
Accounts payable and accrued liabilities	(21)	35	(66)	(9)
Increase (decrease) in working capital	39	19	(72)	(74)
Cash interest paid	19	17	20	17
Cash interest received	0	(1)	(1)	(1)
Cash income taxes paid	16	28	66	101
Cash income taxes received	$ 0	$ 0	$ (15)	$ (3)

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SUPPLEMENTAL CASH FLOW INFORMATION - Net Change in Financial Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018
Cash Flow Statement [Abstract]
Long-term debt	$ 346	$ 0	$ 346	$ 1
Other long-term debt	2	0	82	0
Accrued interest on long-term debt	(8)	(8)	2	(1)
Costs on early extinguishment of 2020 Notes	9	0	9	0
Net increase (decrease) in financial liabilities	$ 349	$ (8)	$ 439	$ 0

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SUPPLEMENTAL CASH FLOW INFORMATION - Cash and Non-Cash Movements in Financial Liabilities (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018
Cash movements:
Interest paid	$ (19)	$ (17)	$ (20)	$ (17)
Payments of lease liabilities, classified as financing activities	(3)	0	(6)	0
Proceeds from borrowings, classified as financing activities	350	0	350	0
Payments for debt issue costs	(4)	0	(4)	0
Accounts receivable securitization drawings	2	0	82	0
Cash movements	329	(17)	408	(17)
Non-cash movements:
Amortization of debt issue costs	0	0	1	1
Interest expense	12	9	22	16
Debt issuance costs	(2)	0	(2)	0
Costs on early extinguishment of 2020 Notes	10	0	10	0
Interest expense	20	9	31	17
Net increase (decrease) in financial liabilities	$ 349	$ (8)	$ 439	$ 0

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FINANCIAL INSTRUMENTS - Book and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions	Jul. 06, 2019	Dec. 31, 2018	Jun. 30, 2018
Disclosure of financial assets [line items]
Net Book Value		$ 278	$ 452
Fair Value		278	$ 452
Disclosure of financial liabilities [line items]
Net Book Value	$ 1,228	902
Fair Value	1,259	903
Accounts payable and accrued liabilities | Amortised cost
Disclosure of financial liabilities [line items]
Net Book Value	220	293
Fair Value	220	293
Accrued early debt extinguishment costs | Amortised cost
Disclosure of financial liabilities [line items]
Net Book Value	9	0
Fair Value	9	0
Accrued liability under ASPP | Amortised cost
Disclosure of financial liabilities [line items]
Net Book Value	0	42
Fair Value	0	42
Long-term debt | Amortised cost
Disclosure of financial liabilities [line items]
Net Book Value	905	555
Fair Value	936	556
Other long-term debt | Amortised cost
Disclosure of financial liabilities [line items]
Net Book Value	82	0
Fair Value	82	0
Other liabilities | Amortised cost
Disclosure of financial liabilities [line items]
Net Book Value	12	12
Fair Value	12	12
Cash and cash equivalents | Fair value through profit or loss
Disclosure of financial assets [line items]
Net Book Value	315	128
Fair Value	315	128
Accounts receivable | Amortised cost
Disclosure of financial assets [line items]
Net Book Value	136	149
Fair Value	136	149
Other assets(2) | Amortised cost
Disclosure of financial assets [line items]
Net Book Value	1	1
Fair Value	$ 1	$ 1

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FINANCIAL INSTRUMENTS - Narrative (Details) $ in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jul. 06, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jul. 06, 2019 EUR (€)	Jul. 06, 2019 CAD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2018 EUR (€)	Dec. 31, 2018 CAD ($)
Disclosure of detailed information about hedging instruments [line items]
Debt issue costs	$ 9		$ 9				$ 5
Unrealized gain (loss) on derivatives	0		0				(3)
Foreign Currency Forward Contracts | Cash flow hedges
Disclosure of detailed information about hedging instruments [line items]
Nominal amount of hedging instrument						$ 22			$ 143
Unrealized gain (loss) on derivatives	1		1				3
Gains (losses) on financial assets at fair value through profit or loss	1	$ 1	1	$ 1
Foreign Currency Options | Cash flow hedges
Disclosure of detailed information about hedging instruments [line items]
Nominal amount of hedging instrument | €					€ 30,000,000			€ 30,000,000
Unrealized gain (loss) on derivatives	1		1				$ 1
Gains (losses) on financial assets at fair value through profit or loss	$ 1	$ 1	$ 1	$ 1

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COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	Jul. 06, 2019 USD ($)
Disclosure of contingent liabilities [line items]
Purchase commitments	$ 129
Gross lease liabilities	26
Reforestation obligation	4
Non-derivative financial liabilities, undiscounted cash flows	159
Less than 1 Year
Disclosure of contingent liabilities [line items]
Purchase commitments	37
Gross lease liabilities	9
Reforestation obligation	1
Non-derivative financial liabilities, undiscounted cash flows	47
1–5 Years
Disclosure of contingent liabilities [line items]
Purchase commitments	47
Gross lease liabilities	12
Reforestation obligation	2
Non-derivative financial liabilities, undiscounted cash flows	61
Thereafter
Disclosure of contingent liabilities [line items]
Purchase commitments	45
Gross lease liabilities	5
Reforestation obligation	1
Non-derivative financial liabilities, undiscounted cash flows	$ 51

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RELATED PARTY TRANSACTIONS - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018	Dec. 31, 2018
Brookfield
Disclosure of transactions between related parties [line items]
Services received from related party transactions			$ 1	$ 1
Interex Forest Products Ltd.
Disclosure of transactions between related parties [line items]
Proportion of ownership interest in associate			25.00%
Revenue from sale from related party transactions	$ 17	$ 26		$ 49
Amounts receivable from related party transactions	5		$ 5		$ 2
Investments accounted for using equity method, less than	$ 1		$ 1		$ 1

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GEOGRAPHIC SEGMENTS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 06, 2019	Jun. 30, 2018	Jul. 06, 2019	Jun. 30, 2018	Dec. 31, 2018
Disclosure of operating segments [line items]
Sales	$ 447	$ 707	$ 923	$ 1,283
EBITDA	32	272	73	441
Depreciation and amortization	34	36	69	66
Additions to property, plant and equipment	29	53	59	103
Property, plant and equipment	1,410		1,410		$ 1,402
Operating segments | North America
Disclosure of operating segments [line items]
Sales	317	577	647	1,025
EBITDA	15	256	38	412
Depreciation and amortization	28	30	56	55
Additions to property, plant and equipment	19	48	44	93
Property, plant and equipment	1,162		1,162		1,159
Operating segments | Europe
Disclosure of operating segments [line items]
Sales	130	130	276	258
EBITDA	21	21	42	39
Depreciation and amortization	6	6	13	11
Additions to property, plant and equipment	10	5	15	10
Property, plant and equipment	248		248		243
Unallocated
Disclosure of operating segments [line items]
Sales	0	0	0	0
EBITDA	(4)	(5)	(7)	(10)
Depreciation and amortization	0	0	0	0
Additions to property, plant and equipment	0	$ 0	0	$ 0
Property, plant and equipment	$ 0		$ 0		$ 0