Selected Segment Data

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Selected Segment Data

SELECTED SEGMENT DATA

We operate in four segments: Siding, OSB, EWP, and South America. Our business units have been aggregated into these four segments based upon the similarity of economic characteristics, customers, and distribution methods. Our results of operations are summarized below for each of these segments separately as well as for the “Other” category, which comprises other products that are not individually significant.

We evaluate the performance of our business segments based on net sales and Adjusted EBITDA. Accordingly, our chief operating decision maker evaluates performance and allocates resources based primarily on net sales and Adjusted EBITDA for our business segments. Adjusted EBITDA is a non-GAAP financial measure and is defined as income attributed to LP before interest expense, provision for income taxes, depreciation and amortization, and excludes stock-based compensation expense, loss on impairment attributed to LP, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, and other non-operating items.

Information about our product segments is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Net sales
Siding	$	312	$	268	$	889	$	700
OSB	600		368		1,917		792
EWP	201		103		481		281
South America	76		45		203		119
Other	30		11		73		36
Intersegment sales	(1)		—		(2)		—
Total sales	$	1,219	$	795	$	3,561	1,928
PROFIT BY SEGMENT
Net income	$	365	$	177	$	1,182	$	241
Add (deduct):
Net loss attributed to noncontrolling interest	—		—		1		2
Income attributed to LP	365		177		1,183		243
Provision for income taxes	123		60		366		88
Depreciation and amortization	30		28		88		84
Stock-based compensation expense	5		5		10		8
Loss on impairment attributed to LP	—		1		—		15
Other operating credits and charges, net	(2)		(2)		(5)		(4)
Product-line discontinuance charges	—		(1)		—		9
Loss on early debt extinguishment	—		—		11		—
Interest expense	4		5		12		17
Investment income	—		—		(1)		(3)
Other non-operating items	(2)		—		3		(4)
Adjusted EBITDA	$	522	$	273	$	1,667	$	453
Siding	$	73	$	76	$	240	$	169
OSB	381		189		1,300		270
EWP	42		9		68		21
South America	37		11		91		29
Other	(3)		(5)		(11)		(13)
Corporate	(8)		(7)		(22)		(23)
Adjusted EBITDA	$	522	$	273	$	1,667	$	453