Contingency Reserves

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Contingency Reserves

CONTINGENCY RESERVES

LP maintains reserves for various contingent liabilities as follows:

Dollar amounts in millions	March 31, 2012			December 31, 2011
Environmental reserves	$	14.6		$	15.0
Hardboard siding reserves	6.1			6.2
Total contingency reserves	20.7			21.2
Current portion of contingency reserves	(4.0		)	(4.0		)
Long-term portion of contingency reserves	$	16.7		$	17.2

Hardboard Siding Reserves

LP has established reserves relating to certain liabilities associated with a settlement agreement resulting from a nationwide class action lawsuit involving hardboard siding manufactured or sold by corporations acquired by LP in 1999 and installed prior to May 15, 2000 which was approved by the applicable courts in 2000. This settlement is discussed in greater detail in the Notes to the financial statements included in LP’s Annual Report on Form 10-K for the year ended December 31, 2011. LP believes that the reserve balance for this settlement at March 31, 2012 will be adequate to cover future payments to claimants and related administrative costs.

The activity in the portion of LP's loss contingency reserves relating to hardboard siding contingencies for the first three months of 2012 and 2011 are summarized in the following table.

Dollar amounts in millions	March 31, 2012			March 31, 2011
Beginning balance, December 31,	$	6.2		$	17.8
Payments made for claims	(0.1		)	(0.3		)
Payments made for administrative costs	—			(0.1		)
Ending balance	$	6.1		$	17.4

LP believes that the reserve balance at March 31, 2012 will be adequate to cover future payments to claimants and related administrative costs.