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What changed in LOUISIANA-PACIFIC CORP's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of LOUISIANA-PACIFIC CORP's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+202 added−195 removedSource: 10-K (2025-02-19) vs 10-K (2024-02-14)

Top changes in LOUISIANA-PACIFIC CORP's 2024 10-K

202 paragraphs added · 195 removed · 164 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

50 edited+6 added−8 removed49 unchanged
Biggest changeOur principal customers include the following: • Wholesale distribution companies, which supply building materials to retailers on a regional, state, or local basis; • Distributors, who provide building materials to smaller retailers, contractors, and others; • Building materials professional dealers that specialize in sales to professional builders, remodeling firms, and trade contractors that are involved in residential home construction and light commercial building; • Retail home centers that provide access to consumer markets with a broad selection of home improvement materials and increasingly serve professional builders, DIY remodelers, and trade contractors; and • Off-site structure producers that design, construct, and distribute prefabricated residential and light commercial structures, including fully manufactured, modular, and panelized structures, for consumer and professional markets. 7 OUR COMPETITORS / COMPETITION The building products industry is highly competitive.
Biggest changeOur principal customers include the following: • Wholesale distribution companies, which supply building materials to retailers on a regional, state, or local basis; • Distributors, who provide building materials to smaller retailers, contractors, and others; • Building materials professional dealers that specialize in sales to professional builders, remodeling firms, and trade contractors that are involved in residential home construction and light commercial building; and • Retail home centers that provide fully manufactured, modular, and panelized structures, for consumer and professional markets.
Our talent development programs provide employees with the resources they need to help achieve their career goals, build management skills, and lead the Company. 10 Compensation and Benefits. We strive to provide competitive compensation and benefits programs to help meet the needs of our employees and offer the flexibility, inclusivity, choice and protection necessary to retain top talent.
Our talent development programs provide employees with the resources they need to help achieve their career goals, build management skills, and lead the Company. Compensation and Benefits. We strive to provide competitive compensation and benefits programs to help meet the needs of our employees and offer the flexibility, inclusivity, choice and protection necessary to retain top talent.
We embrace the diversity of our team members, customers, stakeholders, and consumers, including their unique backgrounds, experiences, ideas, and talents, and are committed to continued efforts to foster an inclusive workplace. All LP team members are valued and appreciated for their distinct contributions to the growth and sustainability of our business.
We embrace the diversity of our team members, customers, stakeholders, and consumers, including their unique backgrounds, experiences, ideas, and talents, and are committed to continued efforts to foster an inclusive workplace. We believe all LP team members are valued and appreciated for their distinct contributions to the growth and sustainability of our business.
Our LPSA segment manufactures and distributes LP OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction.
Our LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction.
Ringblom served as Executive Vice President, OSB and EWP from January 2017 to February 2022 and as Vice President of OSB sales and marketing from February 2015 to December 2016, and has held various other sales leadership positions at the Company since 2004. 13
Ringblom served as Executive Vice President, OSB and EWP from January 2017 to February 2022 and as Vice President of OSB sales and marketing from February 2015 to December 2016, and has held various other sales leadership positions at the Company since 2004.
He previously also held the title Executive Vice President, General Manager, EWP from February 2022 until August 2022, when the Company sold the assets related to its Engineered Wood Products (“EWP”) business. Prior to that, Mr.
He previously also held the title Executive Vice President, General Manager, EWP from February 2022 until August 2022, when the Company sold the assets related to its Engineered Wood Products (EWP) business. Prior to that, Mr.
Additional information concerning legal and regulatory matters is set forth under “Risk Factors – Legal and Regulatory Risk Factors” in Item 1A of this annual report on Form 10-K. We are subject to income taxes and other corporate taxes in the United States and foreign jurisdictions.
Additional information concerning legal and regulatory matters is set forth under “Risk Factors – Legal and Regulatory Risk Factors” in Item 1A of this annual report on Form 10-K. 8 We are subject to income taxes and other corporate taxes in the United States and multiple foreign jurisdictions.
Resin product costs are influenced by changes in the prices of raw materials used to produce resin, primarily petroleum products and energy, as well as competing demand for resin products. Currently, we purchase most of our resin from five major suppliers.
Resin product costs are influenced by changes in the prices of raw materials used to produce resin, primarily petroleum products and energy, as well as competing demand for resin products. Currently, we purchase most of our resin from six major suppliers.
While subject to change, our current benefit programs may include, depending on country/region and employment position, stock-based awards granted pursuant to our stock award plans, awards granted under our annual cash incentive award plan, a 401(k) plan or defined contribution plan, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family medical leave, paid parental leave (maternity, bonding, adoption, and surrogacy), an employee emergency support fund, tuition assistance, and scholarship programs.
While subject to change, our current benefit programs may include, depending on country/region and employment position, stock-based awards granted pursuant to our stock award plans, awards granted under our annual cash incentive award plan, an employee stock purchase plan, a 401(k) and profit-sharing plan or defined contribution plan, healthcare and insurance benefits, health savings and flexible spending accounts, paid time off, family medical leave, paid parental leave (maternity, bonding, adoption, and surrogacy), fertility benefits, an employee emergency support fund, tuition assistance, and scholarship programs.
In addition, we offer employees the ability to customize benefit options to meet their individual needs and the needs of their families. SEGMENT AND PRICE TREND DATA The following tables present summary data for each of the last three years relating to: (i) housing starts within the United States, (ii) our sales volumes, and (iii) our OEE performance.
In addition, we offer employees the ability to customize benefits options to meet their individual needs and the needs of their families. 10 SEGMENT AND PRICE TREND DATA The following tables present summary data for each of the last three years relating to: (i) housing starts within the United States, (ii) our sales volumes, and (iii) our OEE performance.
We are committed to complying with all applicable environmental laws and regulations and intend to devote significant management attention to such matters. In addition, we occasionally undertake construction projects for environmental control equipment or incur other environmental costs that extend an asset’s useful life, improve its efficiency, and/or improve the property's marketability.
We are committed to complying with all applicable environmental laws and regulations and intend to continue devoting significant management attention to such matters. In addition, we occasionally undertake construction projects for environmental control equipment or incur other environmental costs that extend an asset’s useful life, improve its efficiency, and/or improve the property's marketability.
We believe our marketing programs aim to drive awareness of our products and a greater understanding of our products’ specific features among builders, repair and remodel contractors, industrial manufacturers, and major home improvement retailers.
Our marketing programs aim to drive awareness of our products and a greater understanding of our products’ specific features among builders, repair and remodel contractors, industrial manufacturers, and major home improvement retailers.
We are committed to recognizing and rewarding the contributions of our valued employees while continually working to develop, engage, and retain our workforce. We focus on the team member experience, removing barriers to engagement, further modernizing the human relations process, and continually improving the equity and effectiveness of all talent practices.
We are committed to recognizing and rewarding the contributions of our valued employees while continually working to develop, engage, and retain our workforce. We focus on the team member experience, removing barriers to engagement, further modernizing the human relations process, and continually improving our talent practices.
These strategies, objectives, and measures are the basis of our workforce management framework and are advanced through the following programs, policies, and initiatives: Labor Relations. As of December 31, 2023, we employed approximately 4,100 team members, comprising approximately 2,700 in the United States, 800 in Canada, and 600 in South America.
These strategies, objectives, and measures are the basis of our workforce management framework and are advanced through the following programs, policies, and initiatives: Labor Relations. As of December 31, 2024, we employed approximately 4,300 team members, comprising approximately 2,800 in the United States, 800 in Canada, and 700 in South America.
The principal customers for our building solutions are retailers, wholesalers, and home building and industrial businesses in North America and South America, with limited sales in Asia, Australia, and Europe. Since our founding in 1972, LP has been Building a Better World ™ by helping customers construct beautiful and durable homes.
The principal customers for our building solutions are retailers, wholesalers, and home building and industrial businesses in North America and South America, with limited sales in Asia, Australia, and Europe. Since our founding in 1972, LP has been Building a Better World ™ by helping customers construct beautiful, durable homes while shareholders build lasting value.
In addition, we will make available our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act through our Internet website at http://www.lpcorp.com under the “For Investors” tab as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
In addition, we will make available our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act through our Internet website at http://investor.lpcorp.com under the "SEC Filings" heading of the“Financial Information” tab as soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
Years Ended December 31, 2023 2022 2021 Siding 77 % 76 % 73 % OSB 75 % 72 % 74 % LPSA 75 % 71 % 77 % 12 AVAILABLE INFORMATION We file annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and from time to time, other documents with the SEC.
Years Ended December 31, 2024 2023 2022 Siding 77 % 77 % 76 % OSB 78 % 75 % 72 % LPSA 72 % 75 % 71 % AVAILABLE INFORMATION We file annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, and from time to time, other documents with the SEC.
Approximately 3,100 team members were employed at manufacturing facilities, and approximately 800 team members were subject to collective bargaining agreements and/or national trade union agreements. We are committed to working collaboratively with the unions that represent some of our employees. Health, Safety, and Wellness. We are committed to the health, safety, and wellness of our employees.
Approximately 3,300 team members were employed at manufacturing facilities, and approximately 1,000 team members were subject to collective bargaining agreements and/or national trade union agreements. We are committed to working collaboratively with the unions that represent some of our employees. 9 Health, Safety, and Wellness. We are committed to the health, safety, and wellness of our employees.
The goal of the strategic sourcing group is to develop global strategies for a given component group, identify vendors and suppliers that meet our business requirements, and develop long-term relationships with those vendors and suppliers.
The goal of the strategic sourcing group is to develop global strategies for a given component group, identify vendors and suppliers that meet our business requirements, promote a competitive pricing environment among our vendors and suppliers, and develop long-term relationships with those vendors and suppliers.
OUR CUSTOMERS We seek to maintain a broad customer base and a balanced approach to national distribution through both wholesale and retail channels. In 2023, our top ten customers accounted for approximately 50% of our sales.
OUR CUSTOMERS We seek to maintain a broad customer base and a balanced approach to national distribution through both wholesale and retail channels. In 2024, our top ten customers accounted for approximately 49% of our net sales.
Housing Starts We monitor housing starts, which is a leading external indicator of residential construction in the United States that correlates with the demand for many of our products.
Housing Starts We monitor housing starts, which is an indicator of residential construction in the United States that correlates with the demand for many of our products.
We are headquartered in Nashville, Tennessee, and as of December 31, 2023, we operated 23 plants across the U.S., Canada, Chile, and Brazil.
We are headquartered in Nashville, Tennessee, and as of December 31, 2024, we operated 22 plants across the U.S., Canada, Chile, and Brazil.
We compete internationally with several thousand forest and building products firms, ranging from very large, fully integrated firms to smaller enterprises that may manufacture a few items. We also compete less directly with firms that manufacture substitutes for wood building products.
OUR COMPETITORS / COMPETITION The building products industry is highly competitive. We compete internationally with several thousand forest and building products firms, ranging from very large, fully integrated firms to smaller enterprises that may manufacture a few items. We also compete less directly with firms that manufacture substitutes for wood building products.
Our Siding segment serves diverse end markets with a broad product offering, including LP ® SmartSide ® Trim & Siding, LP ® SmartSide ® ExpertFinish ® Trim & Siding, LP BuilderSeries ® Lap Siding, and LP ® Outdoor Building Solutions™ (collectively referred to as Siding Solutions).
Our Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia, including LP ® SmartSide ® Trim & Siding, LP ® SmartSide ® ExpertFinish ® Trim & Siding, LP BuilderSeries ® Lap Siding, and LP ® Outdoor Building Solutions ® (collectively referred to as Siding Solutions).
Mr. Mason has worked in manufacturing operations since 2001, joining the Company in 2006. Prior to joining the Company, Mr. Mason held positions with International Paper and Milliken & Company . Jason P. Ringblom , age 41, has been Executive Vice President, General Manager, Siding since February 2022.
Prior to joining the Company, Mr. Mason held positions with International Paper and Milliken & Company . Jason P. Ringblom , age 42, has been Executive Vice President, General Manager, Siding since February 2022.
Our Siding Solutions products are used in new home construction, repair and remodeling projects, and outdoor structures such as sheds. We intend to continue growing sales in our Siding segment and to increase the breadth of our Siding Solutions product offerings.
Our Siding Solutions products are used in new home construction, repair and remodeling projects, and outdoor structures such as sheds. We intend to continue growing sales in our Siding segment and to increase the breadth of our Siding Solutions product offerings. To do so, we plan to increase the production capacity of these high-margin, value-added products.
Year Ended December 31, 2023 Sales Volume Siding OSB LPSA Total Siding Solutions (MMSF) 1,547 — 33 1,580 OSB - Structural Solutions (MMSF) — 1,559 502 2,061 OSB - Commodity (MMSF) — 1,512 — 1,512 Year Ended December 31, 2022 Sales Volume Siding OSB LPSA Total Siding Solutions (MMSF) 1,797 — 33 1,830 OSB - Structural Solutions (MMSF) — 1,803 554 2,357 OSB - Commodity (MMSF) — 1,944 — 1,944 Year Ended December 31, 2021 Sales Volume Siding OSB LPSA Total Siding Solutions (MMSF) 1,621 — 46 1,667 OSB - Structural Solutions (MMSF) — 1,664 615 2,279 OSB - Commodity (MMSF) — 2,014 — 2,014 Overall Equipment Effectiveness Summary We measure OEE of each of our mills to track improvements in the utilization and productivity of our manufacturing assets.
Year Ended December 31, 2024 Sales Volume Siding OSB LPSA Total Siding Solutions (MMSF) 1,719 — 35 1,754 OSB - Structural Solutions (MMSF) — 1,705 548 2,253 OSB - Commodity (MMSF) — 1,680 — 1,680 11 Year Ended December 31, 2023 Sales Volume Siding OSB LPSA Total Siding Solutions (MMSF) 1,547 — 33 1,580 OSB - Structural Solutions (MMSF) — 1,559 502 2,061 OSB - Commodity (MMSF) — 1,512 — 1,512 Year Ended December 31, 2022 Sales Volume Siding OSB LPSA Total Siding Solutions (MMSF) 1,797 — 33 1,830 OSB - Structural Solutions (MMSF) — 1,803 554 2,357 OSB - Commodity (MMSF) — 1,944 — 1,944 Overall Equipment Effectiveness Summary We measure OEE of each of our mills to track improvements in the utilization and productivity of our manufacturing assets.
Information contained on, or accessible through, our website is not a part of, and is not incorporated by reference into, this annual report on Form 10-K. INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following list sets forth information about our executive officers. All information is as of the date of the filing of this annual report on Form 10-K. W.
Information contained on, or accessible through, our website is not a part of, and is not incorporated by reference into, this annual report on Form 10-K. INFORMATION ABOUT OUR EXECUTIVE OFFICERS The following list sets forth information about our executive officers who are elected annually by the Board of Directors.
Other companies may present housing start data differently, and therefore, as presented by us, our housing start data may not be comparable to similarly titled indicators reported by other companies. Year Ended December 31, 2023 2022 2021 Housing starts 1 : Single-Family 945 1,005 1,127 Multi-Family 469 547 474 1,413 1,553 1,601 1 Actual U.S.
Other companies may present housing start data differently, and therefore, as presented by us, our housing start data may not be comparable to similarly titled indicators reported by other companies. Year Ended December 31, 2024 2023 2022 Housing starts 1 : Single-Family 1,010 948 1,005 Multi-Family 355 472 547 1,364 1,420 1,553 1 Actual U.S.
STRATEGIC SOURCING We rely on various suppliers to furnish the raw materials and inputs used in the manufacturing of our products. To maximize our effectiveness in the marketplace, we have a centralized strategic sourcing group that consolidates purchases of certain materials and indirect items across business segments.
To maximize our effectiveness in the marketplace, we have a centralized strategic sourcing group that consolidates purchases of certain materials and indirect items across business segments.
We attempt to mitigate our exposure to energy price changes through the selective use of long-term supply agreements. 8 SEASONALITY Our business is subject to seasonal variances, with demand for many of our products tending to be higher during the building season, which generally occurs in the second and third calendar quarters in North America and the fourth and first calendar quarters in South America.
SEASONALITY Our business is subject to seasonal variances, with demand for many of our products tending to be higher during the building season, which generally occurs in the second and third calendar quarters in North America and the first and fourth calendar quarters in South America.
The continued success and growth of our business depends, in large part, on our ability to attract, retain, and develop a diverse population of talented and high-performing employees at all levels.
WORKFORCE AND EMPLOYEE RELATIONS Our employees are our most important asset, and they are integral to our ability to achieve our strategic objectives. The continued success and growth of our business depends, in large part, on our ability to attract, retain, and develop a diverse population of talented and high-performing employees at all levels.
Mason , age 45, has been Executive Vice President, General Manager, OSB since February 2022. Prior to that, he served as Vice President, Siding Manufacturing from November 2018 to February 2022, as Director Regional Operations for the Company’s Siding business from January 2018 to November 2018, and as Regional Operations Manager for the Siding business from 2015 until January 2018.
Prior to that, he served as Vice President, Siding Manufacturing from November 2018 to February 2022, as Director Regional Operations for the Company’s Siding business from January 2018 to November 2018, and as Regional Operations Manager for the Siding business from 2015 until January 2018. Mr. Mason has worked in manufacturing operations since 2001, joining the Company in 2006.
Additional information concerning environmental matters is set forth under Item 3 "Legal Proceedings", and in "Note 14 - Commitments and Contingencies" of the Notes to the Consolidated Financial Statements included in Item 8 of this annual report on Form 10-K. 9 WORKFORCE AND EMPLOYEE RELATIONS Our employees are our most important asset, and they are integral to our ability to achieve our strategic objectives.
Additional information concerning environmental matters is set forth under Item 3 "Legal Proceedings", and in "Note 14 - Commitments and Contingencies" of the Notes to the Consolidated Financial Statements included in Item 8 of this annual report on Form 10-K.
We continue to improve the OEE of our manufacturing facilities. We believe our OEE programs have produced excellent returns and generated many best practices that have been applied across our manufacturing system. Given these initiatives and the strategic locations of many of our facilities, we believe that we are very competitive regarding average delivered cost.
We continue to improve the OEE of our manufacturing facilities. We believe our OEE programs have produced excellent returns and generated many best practices that have been applied across our manufacturing system.
From 2013 to 2017, he was Senior Vice President and Chief Financial Officer of ServiceMaster Global Holdings Inc., a Fortune 1000 public company that provides residential and commercial services. From 2010 until 2013, Mr. Haughie served as Senior Vice President and Chief Financial Officer of Federal-Mogul Corporation. Jimmy E.
Haughie , age 61, has been Executive Vice President, Chief Financial Officer since January 2019. From 2013 to 2017, he was Senior Vice President and Chief Financial Officer of ServiceMaster Global Holdings Inc., a Fortune 1000 public company that provides residential and commercial services. From 2010 until 2013, Mr.
The table below summarizes the relative sizes of our business segments in 2023: Segment Net Sales (in millions) Percentage of 2023 Net Sales Siding $ 1,328 51 % Oriented Strand Board (OSB) 1,026 40 % LP South America (LPSA) 205 8 % Other 22 1 % $ 2,581 OUR BUSINESS SEGMENTS Siding We believe that we are the largest producer of engineered wood siding in North America.
The table below summarizes the relative sizes of our business segments in 2024: Segment Net Sales (in millions) Percentage of 2024 Net Sales Siding $ 1,558 53 % Oriented Strand Board (OSB) 1,184 40 % LP South America (LPSA) 190 6 % Other 9 — % $ 2,941 OUR BUSINESS SEGMENTS Siding We believe we are the largest manufacturer of engineered wood siding in North America.
Our facilities utilize the best available manufacturing techniques based on the needs of our business segments, and we work continuously to improve our operating efficiency and productivity, as measured by OEE. We currently operate 20 strategically located manufacturing and production facilities in the U.S. and Canada, two facilities in Chile, and one facility in Brazil.
Our facilities utilize the best available manufacturing techniques based on the needs of our business segments, and we work continuously to improve our operating efficiency and productivity, as measured by OEE.
Investments as a market leader in this region should allow us to capitalize on demand while diversifying our revenue mix and market cyclicality. OUR MARKETS Our sales and marketing efforts are primarily focused on traditional distribution, professional building products dealers, home centers, third-party wholesale buying groups, and end users, particularly home builders, industrial manufacturers, and repair and remodel contractors.
OUR MARKETS Our sales and marketing efforts are primarily focused on traditional distribution, professional building products dealers, home centers, third-party wholesale buying groups, and end users, particularly home builders, industrial manufacturers, and repair and remodel contractors.
Daniel , age 55, has been Senior Vice President, General Counsel and Corporate Secretary since September 2019. From July 2013 to September 2019, Ms. Daniel served as Vice President, General Counsel and Corporate Secretary at Ciner Resources LP, a leading producer of natural soda ash, which was known as OCI Enterprises prior to its purchase by Ciner in 2015.
Daniel served as Vice President, General Counsel and Corporate Secretary at Ciner Resources LP, a leading producer of natural soda ash, which was known as OCI Enterprises prior to its purchase by Ciner in 2015. She also held legal and compliance leadership roles at Albemarle Corp from 2002 to 2013. Alan J.M.
Our Siding Solutions products consist of a full line of engineered wood siding, trim, soffit, and fascia. As compared to solid wood, these products offer superior protection against hail, wind, moisture, fungal decay, and termites.
As compared to solid wood, these products offer superior protection against hail, wind, moisture, fungal decay, and termites.
Bradley Southern , age 64, has been Chairperson of the Board of Directors since May 2020 and Chief Executive Officer of the Company since July 2017, and previously was Executive Vice President, Chief Operating Officer from November 2016 to June 2017. Prior to that, Mr.
All information is as of the date of the filing of this annual report on Form 10-K. 12 W. Bradley Southern , age 65, has been Chairperson of the Board of Directors since May 2020 and Chief Executive Officer of the Company since July 2017, and previously was Executive Vice President, Chief Operating Officer from November 2016 to June 2017.
As market conditions change, we will continue to adapt our product mix, selectively invest in new technologies that modernize our manufacturing facilities and manage our capacity to best match customer demand. We believe that these strategies improve our portfolio and margins and enhance the quality and consistency of our earnings. Pursue Selected Strategic Transactions.
Given these initiatives and the strategic locations of many of our facilities, we believe that we are very competitive regarding average delivered cost. 6 As market conditions change, we will continue to adapt our product mix, selectively invest in new technologies that modernize our manufacturing facilities and manage our capacity to best match customer demand.
We continuously evaluate strategic investments in assets, businesses, and technologies, as well as investments that improve the performance of our businesses. We believe that our pursuit of these opportunities, if successful, could enable us to increase the size and scope of our businesses or joint ventures. Expand Internationally.
We believe that our pursuit of these opportunities, if successful, could enable us to increase the size and scope of our businesses or joint ventures. Expand Internationally. We believe that our investments in South America will help us continue to satisfy the growing demand for wood-based residential construction in this region.
To do so, we plan to increase the production capacity of these high-margin, value-added products through the addition of new plants, additional conversion of existing Oriented Strand Board plants to Siding manufacturing plants, expansion of our capacity at existing Siding facilities, and expansion of our prefinished capacity and offerings.
We have several options for increased capacity, including the addition of new plants, conversion of existing Oriented Strand Board plants to Siding manufacturing plants, expansion of existing Siding facilities, and expansion of our prefinished capacity and offerings.
Southern served as Executive Vice President of OSB beginning in March 2015, Senior Vice President of Siding beginning in 2012 and Vice President of Specialty Operations beginning in 2004. Michael W.
Prior to that, Mr. Southern served as Executive Vice President of OSB beginning in March 2015, Senior Vice President of Siding beginning in 2012 and Vice President of Specialty Operations beginning in 2004. Mr. Southern has also served as a member of the board of directors of GMS Inc. (NYSE: GMS) since January 2024. Mr.
We will also seek to drive continued product innovation by utilizing our technological and engineering expertise in wood composites, overlays, chemical treatments, and durable and beautiful paints to better address the needs of our customers. In May 2023, we acquired an idle manufacturing facility in Wawa, Ontario, Canada from a third party for $80 million.
We will also seek to drive continued product innovation by utilizing our technological and engineering expertise in wood composites, overlays, chemical treatments, and durable and beautiful paints to better address the needs of our customers. 5 Oriented Strand Board (OSB) Developed as a less expensive and more sustainable alternative to plywood, OSB is used as roof decking, sidewall sheathing and floor underlayment.
We believe that long-term market trends and demographics suggest continued growth in demand for sustainable engineered wood siding in these markets, which we believe we are well-positioned to meet. During 2023, we completed the conversion of our existing OSB mill in Sagola, Michigan into a Siding Solutions mill.
We believe that long-term market trends and demographics suggest continued growth in demand for sustainable engineered wood siding in these markets, which we believe we are well-positioned to meet. We routinely evaluate project schedules and market demand to determine when to begin related construction work on Siding Solutions capacity expansion projects. Generate Value-Added Sales Growth Through Customer Focus and Innovation.
We believe that our investments in South America will help us continue to satisfy the growing demand for wood-based residential construction in this region. We believe that investments in this region can continue to be funded by cash generated by our LPSA segment.
We believe that investments in this region can continue to be funded by cash generated by our LPSA segment. Investments as a market leader in this region should enable us to leverage demand while diversifying both our revenue streams and exposure to market cycles.
Housing starts data, in thousands, reported by U.S. Census Bureau is based upon information published through January 18, 2024. 11 Sales Volume Information Summary We monitor sales volumes for our products in our Siding, OSB, and LPSA segments, which we define as the number of units of our products sold within the applicable period.
Sales Volume Information Summary We monitor sales volumes for our products in our Siding, OSB, and LPSA segments, which we define as the amount of our products sold within the applicable period measured in million square feet (MMSF) on a standard 3/8" thickness basis.
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We anticipate converting the Wawa manufacturing facility into an LP ® SmartSide ® Trim & Siding mill in the future according to the needs of our business.
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We believe that these strategies improve our portfolio and margins and enhance the quality and consistency of our earnings. Pursue Selected Strategic Transactions. We continuously evaluate strategic investments in assets, businesses, and technologies, as well as investments that improve the performance of our businesses.
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We are evaluating project schedules and market demand to determine when we will begin related construction work. 5 Oriented Strand Board (OSB) OSB is a structural building panel product made from wood strands, arranged in layers, and bonded with resin and wax.
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We currently operate 19 strategically located manufacturing and production facilities in the U.S. and Canada, two facilities in Chile, and one facility in Brazil. 7 STRATEGIC SOURCING We rely on various suppliers to furnish the raw materials and inputs used in the manufacturing of our products.
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Developed as a less expensive and more sustainable alternative to plywood, OSB is used as roof decking, sidewall sheathing and floor underlayment.
Added
We attempt to mitigate our exposure to energy price changes through the selective use of long-term supply agreements.
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This conversion provided our business an additional 300 million square feet of Siding Solutions capacity. In 2023, we also completed the construction of our new ExpertFinish facility in Bath, New York, which added approximately 55 million square feet of ExpertFinish capacity. Additionally in 2023, we acquired an idle manufacturing facility in Wawa, Ontario, Canada.
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Housing starts data, in thousands, reported by U.S. Census Bureau is based upon information published through January 17, 2025.
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We anticipate converting the Wawa manufacturing facility into an LP SmartSide Trim & Siding mill in the future. Following the conversion of the Wawa facility, we anticipate adding Siding Solutions production capacity through an expansion of our existing Siding Solutions mill in Houlton, Maine.
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Southern also serves on the boards of directors of The Forest Products Association of Canada and the Nashville Branch of the Federal Reserve Bank of Atlanta. Nicole C. Daniel , age 56, has been Senior Vice President, General Counsel and Corporate Secretary since September 2019. From July 2013 to September 2019, Ms.
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We are evaluating project schedules and market demand to determine when we would begin related construction work for both the Wawa facility and the subsequent expansion of the Houlton facility. 6 Generate Value-Added Sales Growth Through Customer Focus and Innovation.
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Haughie served as Senior Vice President and Chief Financial Officer of Federal-Mogul Corporation. Jimmy E. Mason , age 46, has been Executive Vice President, General Manager, OSB since February 2022.
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Blosser , age 62, has been Senior Vice President, Manufacturing Services since July 2017, and previously served as manufacturing manager for the Company’s Siding business before becoming Vice President in June 2007 with responsibility for the Company’s corporate safety and environmental efforts, as well as the forest resources division, procurement and logistics. Nicole C.
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She also held legal and compliance leadership roles at Albemarle Corp from 2002 to 2013. Alan J.M. Haughie , age 60, has been Executive Vice President, Chief Financial Officer since January 2019.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

53 edited+21 added−10 removed118 unchanged
Biggest changeAccordingly, we are subject to risks associated with potential disruption caused by changes in political, monetary, economic, and social environments, including civil and political unrest, terrorism, possible expropriation, local labor conditions (including labor disruptions or shortages), changes in laws, regulations, and policies of foreign governments and trade disputes with the United States (including tariffs), and compliance with U.S. laws affecting activities of U.S. companies abroad, including tax laws, economic sanctions and enforcement of contract and intellectual property rights. 16 Our international operations and sourcing of materials could be harmed by a variety of factors, including: • recessionary trends in international markets; • legal and regulatory changes and the burdens and costs of our compliance with a variety of laws, including but not limited to export controls, import and customs trade restrictions, tariffs, and regulations related to global pandemics; • increases in transportation costs or transportation delays; • work stoppages, unionization efforts and labor strikes; • fluctuations in currency exchange rates, particularly the value of the U.S. dollar relative to other currencies; and • social and political unrest, geopolitical and military conflicts, terrorism and economic instability.
Biggest changeOur international operations and sourcing of materials could be harmed by a variety of factors, including: • recessionary trends in international markets; • legal and regulatory changes and the burdens and costs of our compliance with a variety of laws, including but not limited to export controls, import and customs trade restrictions, tariffs (including tariffs applicable to goods imported into the United States from China, Mexico, Canada, Colombia, or other countries), and regulations related to public health matters; • increases in transportation costs or transportation delays; • work stoppages, unionization efforts and labor strikes; • fluctuations in currency exchange rates, particularly the value of the U.S. dollar relative to other currencies; and • social and political unrest, geopolitical and military conflicts or tensions, terrorism and economic instability.
Historical prices for our commodity products have been volatile, and we, like other participants in the building products industry, have limited influence over the timing and extent of price changes for our products. Commodity product pricing is significantly affected by the relationship between supply and demand in the building products industry.
Historical prices for our commodity products have been volatile, and we, like other participants in the building products industry, have limited influence over the timing and extent of price changes for our commodity products. Commodity product pricing is significantly affected by the relationship between supply and demand in the building products industry.
Nonetheless, final or interim resolution of claims brought forward by Canadian provincial governments and Indigenous nations may result in additional restrictions on wood supply, potentially affecting our operational costs and/or timber prices over the long term. LEGAL AND REGULATORY RISK FACTORS We are subject to significant environmental regulation and environmental compliance expenditures and liabilities.
Nonetheless, final or interim resolution of claims brought forward by Canadian provincial governments and Indigenous nations may result in additional restrictions on wood supply, potentially affecting our operational costs and/or timber prices over the long term. 21 LEGAL AND REGULATORY RISK FACTORS We are subject to significant environmental regulation and environmental compliance expenditures and liabilities.
In addition, global climate change may increase the frequency or intensity of extreme weather events, such as storms, floods, heat waves, and other events that could affect our facilities and demand for our products. 17 Governmental regulations or restrictions intended to reduce greenhouse gas emissions and other climate change impacts are emerging and present potential transition risks.
In addition, global climate change may increase the frequency or intensity of extreme weather events, such as storms, floods, heat waves, and other events that could affect our facilities and demand for our products. Governmental regulations or restrictions intended to reduce greenhouse gas emissions and other climate change impacts are emerging and present potential transition risks.
Pursuant to the Amended Credit Facility effective in November 2022, our senior indebtedness transitioned from bearing interest at a variable interest rate using a London Interbank Offered Rate (LIBOR) benchmark to one that uses a Term SOFR Rate, a forward-looking term rate currently published by CME Group Benchmark Administration Limited (CBA) based upon the Secured Overnight Financing Rate (SOFR) as a benchmark rate.
Pursuant to the Amended Credit Facility effective in November 2022, our senior indebtedness transitioned from bearing interest at a variable interest rate using a London Interbank Offered Rate (LIBOR) benchmark to one that uses a Term SOFR Rate, a forward-looking term rate currently published by CME Group Benchmark Administration Limited based upon the Secured Overnight Financing Rate (SOFR) as a benchmark rate.
Additionally, higher interest rates, higher levels of unemployment, restrictive lending practices, heightened regulation, and increased foreclosures could have a material adverse effect on our financial position, results of operations, and cash flows. 19 We have a high degree of product concentration in OSB, which is subject to commodity pricing and associated price volatility.
Additionally, higher interest rates, higher levels of unemployment, restrictive lending practices, heightened regulation, and increased foreclosures could have a material adverse effect on our financial position, results of operations, and cash flows. We have a high degree of product concentration in OSB, which is subject to commodity pricing and associated price volatility.
If any of these or other factors were to render the conduct of our business in a particular country undesirable or impractical, our business, financial condition, or results of operations could be materially adversely affected. We may pursue acquisitions, divestitures, joint ventures, capital investments and other corporate strategic transactions from time to time.
If any of these or other factors were to render the conduct of our business in a particular country undesirable or impractical, our business, financial condition, or results of operations could be materially adversely affected. 17 We may pursue acquisitions, divestitures, joint ventures, capital investments and other corporate strategic transactions from time to time.
In this competitive environment, with so many variables beyond our control, we cannot guarantee that pricing for our OSB products will not decline from current levels. Decreases in pricing for OSB products may have a material adverse effect on our financial position, liquidity, results of operations, and cash flows.
In this competitive environment, with many variables beyond our control, we cannot guarantee that pricing for our OSB products will not decline from current levels. Decreases in pricing for OSB products may have a material adverse effect on our financial position, liquidity, results of operations, and cash flows.
Our inability to prevent information technology system disruptions or to mitigate the impact of such disruptions could have an adverse effect on our business. Because our intellectual property and other proprietary information may become compromised, we are subject to the risk that competitors could copy our products or processes.
Our inability to prevent information technology system disruptions or to mitigate the impact of such disruptions could have an adverse effect on our business. 16 Because our intellectual property and other proprietary information may become compromised, we are subject to the risk that competitors could copy our products or processes.
In areas where there are treaties, such as in Manitoba, where LP operates, provincial governments are required by law to consult with Indigenous nations regarding land use development projects including, forest management plans and operations. 20 Canadian provincial governments are actively engaged in consultations or negotiations with Indigenous groups.
In areas where there are treaties, such as in Manitoba, where LP operates, provincial governments are required by law to consult with Indigenous nations regarding land use development projects including, forest management plans and operations. Canadian provincial governments are actively engaged in consultations or negotiations with Indigenous groups.
SOFR is the preferred alternative rate for LIBOR that has been identified by the Alternative Reference Rates Committee (ARRC), a U.S.-based group convened by the Federal Reserve and the Federal Reserve Bank of New York. SOFR is calculated based on short-term repurchase agreements, backed by U.S. Treasury securities.
SOFR is the preferred alternative rate for LIBOR that has been identified by the Alternative Reference Rates Committee, a U.S.-based group convened by the Federal Reserve and the Federal Reserve Bank of New York. SOFR is calculated based on short-term repurchase agreements, backed by U.S. Treasury securities.
In evaluating us, you should consider carefully, among other things, the risks described below and the matters described in “Cautionary Statement Regarding Forward-Looking Statements.” BUSINESS AND OPERATIONAL RISK FACTORS Unplanned events may interrupt our manufacturing operations, which may adversely affect our business.
In evaluating us, you should consider carefully, among other things, the risks described below and the matters described in “Cautionary Statement Regarding Forward-Looking Statements.” 13 BUSINESS AND OPERATIONAL RISK FACTORS Unplanned events may interrupt our manufacturing operations, which may adversely affect our business.
In particular, the State of California recently passed the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act which could impose broad climate-related disclosure obligations on certain companies doing business in California, including us, starting in 2026.
In particular, the State of California passed the Climate Corporate Data Accountability Act and the Climate-Related Financial Risk Act which could impose broad climate-related disclosure obligations on certain companies doing business in California, including us, starting in 2026.
Our Credit Agreement (as defined herein) and the indenture governing our 2029 Senior Notes (as defined herein) contain a number of restrictive covenants that impose operating and financial restrictions on us and may limit our ability to engage in acts that may be in our long-term best interests, including, among others, restrictions on our ability to incur indebtedness, grant liens to secure indebtedness, engage in sale and leaseback transactions and merge or consolidate or sell all or substantially all of our assets.
Our Credit Agreement (as defined below) and the indenture governing our 2029 Senior Notes (as defined below) contain a number of restrictive covenants that impose operating and financial restrictions on us and may limit our ability to engage in acts that may be in our long-term best interests, including, among others, restrictions on our ability to incur indebtedness, grant liens to secure indebtedness, engage in sale and leaseback transactions, and merge or consolidate or sell all or substantially all of our assets.
There has been an increased focus, including from investors, the general public and U.S. and foreign governmental and nongovernmental authorities, regarding environmental, sustainability, and governance (ESG) matters, including with respect to climate change, greenhouse gas emissions, packaging and waste, sustainable supply chain practices, deforestation, and land, energy, and water use.
There has been an increased focus, including from investors, the general public and U.S. and foreign governmental and nongovernmental authorities, regarding environmental, social, and governance (ESG) matters, including with respect to climate change, greenhouse gas emissions, packaging and waste, sustainable supply chain practices, deforestation, and land, energy, and water use.
In addition, there has historically been a lack of consistent climate legislation, which has created and continues to create economic and regulatory uncertainty.
In addition, there has historically been, and there continues to be, a lack of consistent climate legislation, which has created and continues to create economic and regulatory uncertainty.
Although we have no operations in Russia or Ukraine, we have experienced shortages in materials and increased costs for transportation, energy, and raw material due in part to the negative impact of the Russia-Ukraine military conflict on the global economy. The scope and duration of the military conflict in Ukraine is uncertain, rapidly changing and hard to predict.
Although we have no operations in Russia or Ukraine, we have experienced shortages in materials and increased costs for transportation, energy, and raw material due in part to the negative impact of the Russia-Ukraine military conflict on the global economy. The scope and duration of the military conflict in Ukraine is uncertain and hard to predict.
We regularly maintain cash balances at third-party financial institutions in excess of the Federal Deposit Insurance Corporation (FDIC) insurance limit.
We regularly maintain cash balances at third-party financial institutions in excess of the Federal Deposit Insurance Corporation insurance limit.
During the year ended December 31, 2023, fire interruptions reduced production by less than 1%, but future fire or other operational interruptions could significantly curtail the production capacity of a facility for a period of time.
During the year ended December 31, 2024, fire interruptions reduced production by less than 1%, but future fire or other operational interruptions could significantly curtail the production capacity of a facility for a period of time.
In addition, an event of default under our Credit Agreement could permit the lenders under our Amended Credit Facility (as defined herein) to terminate all commitments to extend further credit under that facility.
In addition, an event of default under our Credit Agreement could permit the lenders under our Amended Credit Facility (as defined below) to terminate all commitments to extend further credit under that facility.
Any failure of a third-party transportation provider to deliver raw materials or finished products in a timely manner could harm our reputation, negatively affect our customer relationships and have a material adverse effect on our financial condition and results of operations.
Any failure of a third-party transportation provider to deliver raw materials or finished products in a timely manner could harm our reputation, impact our ability to manufacture and deliver our products, negatively affect our customer relationships and have a material adverse effect on our financial condition and results of operations.
There is no assurance that we will have sufficient resources available to satisfy the related costs and expenses associated with these matters or proceedings. The incurring of costs in excess of our contingency reserves could have a material adverse effect on our business, financial condition, and results of operations.
There is no assurance that we will have sufficient resources available to satisfy the related costs and expenses associated with these matters or proceedings. The incurring of costs in excess of our contingency reserves could have a material adverse effect on our business, financial condition, and results of operations. 22 We are subject to the U.S.
Certain challenges we face in meeting our ESG objectives are also captured within our ESG reporting contained on our website, which is not incorporated by reference into and does not form any part of this annual report on Form 10-K or our other filings with the SEC.
Certain challenges we face in meeting our ESG priorities are also captured within our voluntary sustainability report contained on our website, which is not incorporated by reference into and does not form any part of this annual report on Form 10-K or our other filings with the SEC.
OSB accounted for about 43%, 57%, and 65% of our North American net sales in 2023, 2022, and 2021, respectively, and we expect OSB sales to continue to account for a substantial portion of our revenues and profits in the future. The concentration of our business in the OSB market further increases our sensitivity to commodity pricing and price volatility.
OSB accounted for about 43% of our North American net sales in each of 2024 and 2023, and 57% in 2022. We expect OSB sales to continue to account for a substantial portion of our revenues and profits in the future. The concentration of our business in the OSB market further increases our sensitivity to commodity pricing and price volatility.
If we are unable to increase our prices to offset the effects of inflation, our business, operating results, and financial condition could be materially and adversely affected. 23 Warranty claims relating to our products and exceeding our warranty reserves could have a material adverse effect on our business. We have offered, and continue to offer, various warranties on our products.
If we are unable to increase our prices to offset the effects of inflation, our business, operating results, and financial condition could continue to be materially and adversely affected. Warranty claims relating to our products and exceeding our warranty reserves could have a material adverse effect on our business.
In addition, an increase in transportation rates and oil and/or fuel surcharges could materially and adversely affect our sales and profitability. 14 Our reliance on third-party wholesale distribution channels could impact our business. We offer our products directly and through a variety of third-party wholesale distributors and dealers.
In addition, an increase in transportation rates and oil and/or fuel surcharges could materially and adversely affect financial results, including profitability. Our reliance on third-party wholesale distribution channels could impact our business. We offer our products directly and through a variety of third-party wholesale distributors and dealers.
Therefore, a failure to maintain and increase builder and consumer acceptance of our OSB products could also have a material adverse effect on our financial position, liquidity, results of operations, and cash flows. Intense competition in the building products industry could prevent us from increasing or sustaining our net sales and profitability. The markets for our products are highly competitive.
Therefore, a failure to maintain and increase builder and consumer acceptance of our OSB products could also have a material adverse effect on our financial position, liquidity, results of operations, and cash flows. 20 Intense competition in the building products industry could prevent us from increasing or sustaining our net sales and profitability.
Although we maintain reserves for warranty-related claims and we have established and recorded product-related warranty reserves on our Consolidated Financial Statements, we cannot guarantee that warranty expense levels or the results of any warranty-related legal proceedings will not exceed our reserves.
We have offered, and continue to offer, various warranties on our products. Although we maintain reserves for warranty-related claims and we have established and recorded product-related warranty reserves on our Consolidated Financial Statements, we cannot guarantee that warranty expense levels or the results of any warranty-related legal proceedings will not exceed our reserves.
Our competitors range from very large, fully integrated forest and building products firms to smaller firms that may manufacture only one or a few types of products.
The markets for our products are highly competitive. Our competitors range from very large, fully integrated forest and building products firms to smaller firms that may manufacture only one or a few types of products.
For example, the Organization for Economic Cooperation and Development (OECD), Canada and various other countries have committed to enacting substantial changes to numerous long-standing tax principles impacting how large multinational enterprises are taxed in an effort to limit perceived base erosion and profit shifting incentives.
For example, Canada, Brazil and various other countries have enacted or committed to enacting substantial changes to numerous long-standing tax principles impacting how large multinational enterprises are taxed in an effort to limit perceived base erosion and profit shifting incentives.
Further, our ability to effectively manage inventory levels at wholesale distributor locations may be impaired as a result of adverse changes in the financial or business condition of such wholesale distributors, which could increase expenses associated with excess and obsolete inventory and negatively impact our cash flows.
Further, our ability to effectively manage inventory levels at wholesale distributor locations may be impaired as a result of adverse changes in the financial or business condition of such wholesale distributors, which could increase expenses associated with excess and obsolete inventory and negatively impact our cash flows. 14 We may experience difficulties in the development, launch or production ramp-up of new products, which could adversely affect our business.
Achievement of these aspirations, targets, plans and goals is subject to risks and uncertainties, many of which are outside of our control, and it is possible that we may not reach all our ESG goals or certain of our stakeholders might not be satisfied with our efforts.
Achievement of these priorities and strategies is subject to risks and uncertainties, many of which are outside of our control, and it is possible that we may not achieve all our ESG priorities or certain of our stakeholders might not be satisfied with our efforts regarding ESG matters.
More detailed descriptions of our Credit Agreement and the indenture governing our 2029 Senior Notes are included in filings made by us with the SEC, along with the documents themselves, copies of which are filed as exhibits to this annual report on Form 10-K and which provide the full text of these covenants.
In addition, our financial results, our level of indebtedness, and our credit ratings could adversely affect the availability and terms of any additional or replacement financing. 25 More detailed descriptions of our Credit Agreement and the indenture governing our 2029 Senior Notes are included in filings made by us with the SEC, along with the documents themselves, copies of which are filed as exhibits to this annual report on Form 10-K and which provide the full text of these covenants.
In the event our lenders or noteholders accelerate the repayment of our borrowings, we and our subsidiaries may not have sufficient assets to repay that indebtedness. 24 As a result of these restrictions, we may be: • limited in how we conduct our business and grow in accordance with our strategy; • unable to raise additional debt or equity financing to operate during general economic or business downturns; or • unable to compete effectively or to take advantage of new business opportunities.
As a result of these restrictions, we may be: • limited in how we conduct our business and grow in accordance with our strategy; • unable to raise additional debt or equity financing to operate during general economic or business downturns; or • unable to compete effectively or to take advantage of new business opportunities.
We may experience difficulties in the development, launch or production ramp-up of new products, which could adversely affect our business. Our continued success depends in part on our ability to develop new products that will meet the demands of our customers. We may not be successful in developing new products on an effective and financially profitable basis.
Our continued success depends in part on our ability to develop new products that will meet the demands of our customers. We may not be successful in developing new products on an effective and financially profitable basis.
If our suppliers or the third parties we rely on for transportation are unable to comply with environmental laws and regulations, we may be unable to meet consumer demands at the same cost or in a timely fashion.
If our suppliers or the third parties we rely on for transportation are unable to comply with environmental laws and regulations, we may be unable to meet consumer demands at the same cost or in a timely fashion. 19 Our reputation may be adversely affected if we are not able to achieve our ESG priorities or otherwise meet the expectations of our stakeholders with respect to ESG matters.
If we fail to comply with these laws, we could be subject to civil or criminal penalties, other remedial measures, and legal expenses, which could adversely affect our business, financial condition, and results of operations . Our operations are subject to anti-corruption laws, including the U.S.
Foreign Corrupt Practices Act and other anti-corruption laws, as well as other international trade and regulatory laws governing our operations. If we fail to comply with these laws, we could be subject to civil or criminal penalties, other remedial measures, and legal expenses, which could adversely affect our business, financial condition, and results of operations .
The effect of any other tax law changes or regulations and interpretations, as well as any additional tax legislation in the U.S. or other jurisdictions in which we operate, could have a material adverse effect on our business, financial condition, and results of operations. 22 In addition, our products and markets are subject to extensive and complex local, state, federal, and foreign statutes, ordinances, rules, and regulations.
The effect of any other tax law changes or regulations and interpretations, as well as any additional tax legislation in the U.S. or other jurisdictions in which we operate, could have a material adverse effect on our business, financial condition, and results of operations.
Perceived failures or delays in meeting our ESG goals could adversely affect public perception of our business, employee morale or customer or stakeholder support, and may negatively impact our financial condition and results of operations. Our business, financial condition, and results of operations have been, and may again be, adversely affected by global pandemics or other health emergencies.
Perceived failures or delays in meeting our ESG priorities could adversely affect public perception of our business, employee morale or customer or stakeholder support, and may negatively impact our financial condition and results of operations.
Consequently, we cannot guarantee that existing or future circumstances or developments with respect to contamination will not require significant expenditures by us. 21 We are subject to various environmental, product liability, and other legal proceedings, matters, and claims. The outcome of these proceedings, matters, and claims, and the magnitude of related costs and liabilities, are subject to uncertainties.
Consequently, we cannot guarantee that existing or future circumstances or developments with respect to contamination will not require significant expenditures by us or have significant adverse impact on our operations. We are subject to various environmental, product liability, and other legal proceedings, matters, and claims.
Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws that apply in countries where we do business.
Our operations are subject to anti-corruption laws, including the U.S. Foreign Corrupt Practices Act (FCPA) and other anti-corruption laws that apply in countries where we do business.
The specific impact of the conflict in Israel and surrounding areas remains uncertain, but could include increased volatility in financial and commodity markets, increased energy prices, a higher level of general market and macroeconomic instability, and violent protests or social unrest in areas outside the immediate conflict area, among other things.
The impact of the ongoing conflict in Israel and surrounding areas and/or escalation thereof and the tensions between the United States and China and between China and Taiwan could include increased volatility in financial and commodity markets, increased energy prices, increased maritime shipping costs, supply chain disruptions, a higher level of general market and macroeconomic instability, and violent protests or political or social unrest in areas outside the immediate conflict area, among other things.
This conflict and other military or geopolitical conflicts that may arise in the future could materially adversely affect our operations, financial position, and results. INDUSTRY RISK FACTORS Our business primarily relies on North American new home construction and repair, which are impacted by risks associated with fluctuations in the housing market.
INDUSTRY RISK FACTORS Our business primarily relies on North American new home construction and repair, which are impacted by risks associated with fluctuations in the housing market. Downward changes in the general economy, the housing market, or other business conditions could adversely affect our results of operations, cash flows, and financial condition.
While we have voluntarily provided certain disclosures with respect to various ESG matters, including climate change, we cannot predict whether such disclosures will be considered sufficient by our stakeholders or relevant governmental or nongovernmental authorities. Additionally, we cannot predict the extent to which any increased monitoring, assessing, or reporting of ESG matters may impact our operations, financial conditions and results.
While we have voluntarily provided certain disclosures with respect to various ESG matters, including climate change, we cannot predict whether such disclosures will be considered satisfactory by our stakeholders or relevant governmental or nongovernmental authorities.
These risks include but are not limited to the following, in addition to the other risks described above: • the effects of global economic uncertainty or recession, including the impact of the COVID-19 pandemic and the responses of governmental authorities thereto; • compliance with a wide variety of health and safety laws and regulations and changes to such laws and regulations; • the exertion of influence over us, individually or collectively, by a few entities with concentrated ownership of our stock; • new or modified legislation related to health care; • compliance with Section 404 of the Sarbanes-Oxley Act of 2002, including the potential impact of compliance failures; and • failure to meet the expectations of investors, including as a result of factors beyond the control of an individual company. 25
These risks include but are not limited to the following, in addition to the other risks described above: • changes in general and global economic conditions, including impacts from rising inflation, supply chain disruptions, new, ongoing, or escalated geopolitical or military conflicts or tensions including the conflict between Russia and Ukraine, the conflict in Israel and the surrounding areas, tensions between the United States and China and tensions between China and Taiwan, and global pandemics and/or health emergencies; • compliance with a wide variety of health and safety laws and regulations and changes to such laws and regulations; • the exertion of influence over us, individually or collectively, by a few entities with concentrated ownership of our stock; • new or modified legislation related to health care, data privacy, climate change or cybersecurity; • compliance with Section 404 of the Sarbanes-Oxley Act of 2002, including the potential impact of compliance failures; and • failure to meet the expectations of investors, including as a result of factors beyond the control of an individual company.
We have not independently verified the results of third-party research or confirmed assumptions or judgments upon which it may be based, and the forecasted and other forward-looking information contained therein is subject to inherent uncertainties.
If our warranty reserves are significantly exceeded, the costs associated with such warranties could have a material adverse effect on our financial position, results of operations, and cash flows. 24 We have not independently verified the results of third-party research or confirmed assumptions or judgments upon which it may be based, and the forecasted and other forward-looking information contained therein is subject to inherent uncertainties.
This increased awareness with respect to ESG matters, including climate change, may result in more prescriptive reporting requirements with respect to ESG metrics, an expectation that such metrics will be voluntarily disclosed by companies such as ours, and increased pressure to make commitments, set targets, or establish goals, and take action to meet them.
Evolving opinions from these groups with respect to ESG matters may impact reporting requirements with respect to ESG metrics, expectations that such metrics will be voluntarily disclosed by companies such as ours, and opinions as to whether we should make commitments, set targets, or establish goals, and take action to meet them.
From time to time, we announce certain aspirations and goals relevant to our priority ESG matters. We periodically publish information about our ESG priorities, strategies, goals, targets and progress on our corporate website and in public filings and update our ESG reporting from time to time.
We periodically publish information about our ESG priorities, strategies, and progress on our corporate website and in public filings.
We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. There can be no assurance that the outcomes from these examinations will not have a material adverse effect on our business, financial condition, and results of operations, or that our provision for income taxes will be sufficient.
There can be no assurance that the outcomes from these examinations will not have a material adverse effect on our business, financial condition, and results of operations, or that our provision for income taxes will be sufficient. 23 We are also exposed to changes in tax law, as well as any future regulations issued and changes in interpretations of tax laws, which can impact our current and future years' tax provisions.
Our reputation may be adversely affected if we are not able to achieve our ESG goals or otherwise meet the expectations of our stakeholders with respect to ESG matters. We strive to deliver shared value through our business. Our diverse group of stakeholders hold us accountable to ensure we continue to demonstrate progress with respect to industry-specific ESG priorities.
We strive to deliver shared value through our business. Our diverse group of stakeholders hold us accountable to ensure we continue to demonstrate progress with respect to industry-specific ESG priorities. From time to time, we announce certain aspirations and priorities relevant to ESG matters.
Global pandemics and/or other health emergencies may have a material adverse effect on our business or our supply of raw materials, production, distribution channels, and customers, including business shutdowns or disruptions for an indefinite period of time, reduced operations, labor shortages and disruptions, restrictions on manufacturing or shipping products or reduced consumer demand. 18 The impact of new or ongoing military and geopolitical conflicts, including the conflict between Russia and Ukraine and the conflict in Israel and the surrounding areas, on the global economy, energy supplies and raw materials is uncertain, but may prove to negatively impact our business and operations.
Global pandemics and/or other health emergencies may have a material adverse effect on our business or our supply of raw materials, production, distribution channels, and customers, including business shutdowns or disruptions for an indefinite period of time, reduced operations, labor shortages and disruptions, restrictions on manufacturing or shipping products or reduced consumer demand. 18 We are subject to physical, operational, transitional, and financial risks associated with climate change and global, regional, and local weather conditions, and with legal, regulatory, and market responses to climate change.
We manufacture our products in jurisdictions outside the United States and are exposed to risks associated with international business operations. We manufacture our products in the United States, Canada, Chile, and Brazil and sell our products primarily in North America and South America.
We manufacture our products in the United States, Canada, Chile, and Brazil and sell our products primarily in North America and South America. We operate a supply chain that involves the shipment of goods from certain international markets to the jurisdictions where we manufacture our products.
The SEC has included in its regulatory agenda potential rule-making on climate change disclosures that, if adopted, could significantly increase compliance burdens, associated regulatory costs, and complexity.
The SEC has also recently enacted climate change disclosures that have been voluntarily stayed pending litigation, and, if ultimately implemented, could significantly increase compliance burdens, associated regulatory costs, and complexity.
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We are subject to physical, operational, transitional, and financial risks associated with climate change and global, regional, and local weather conditions, and with legal, regulatory, and market responses to climate change.
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The rapid evolution and increased adoption of generative artificial intelligence (AI) is further increasing risks in this area, including by making fraud detection more difficult, particularly with detection devices that use voice recognition or authentication.
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Downward changes in the general economy, the housing market, or other business conditions could adversely affect our results of operations, cash flows, and financial condition.
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Our development, integration and use of AI technology in our operations remains in the early phases.
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Unfavorable changes in single-family housing starts and increased interest rates on major renovations or new home construction during the year ended December 31, 2023, negatively impacted our results of operations for the same period.
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Although we aim to implement AI technology according to responsible procedures and adequate safeguards, our current or future use of AI or machine learning tools in our business operations could expose us to new or additional costs and risks, including the potential introduction of new vulnerabilities or cybersecurity risks within our information technology systems; the potential inadvertent or unauthorized release of our confidential or proprietary information resulting from the use (whether or not authorized) of AI or machine learning tools by our employees, contractors, agents, representatives, vendors or customers; the potential loss of our intellectual property rights or our potential infringement of the intellectual property rights of third parties resulting from the use (whether or not authorized) of AI or machine learning tools in our operations; and potential legal or reputational harms due to insufficient or flawed data, insufficient quality control, or unlawful bias or discrimination associated with the use of AI or machine learning tools.
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Although we have been able to largely recover raw material price increases in the Siding product prices, we are unable to determine to what extent, if any, we will be able to pass any future Siding raw material cost increases through to our customers through product price increases.
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In addition, the AI tools we may incorporate into certain aspects of our operations may not generate the intended efficiencies and may impact our business results.
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We are also exposed to changes in tax law, as well as any future regulations issued and changes in interpretations of tax laws, which can impact our current and future years' tax provisions.
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We manufacture and distribute our products in jurisdictions outside the United States and are exposed to risks associated with international business operations, including risks related to potential supply chain disruptions, such as delays, cost fluctuations, and challenges in sourcing materials or components due to geopolitical events, government trade policies, or logistical constraints.
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In particular, the OECD’s Pillar Two initiative provides for a 15% global minimum tax applied on a country-by-country basis, with a recommended effective date for most provisions of January 1, 2024. Many countries (including countries in which we operate) have enacted or begun the process of enacting laws based on the Pillar Two initiative.
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Accordingly, we are subject to risks associated with potential disruption caused by changes in political, monetary, economic, and social environments, including civil and political unrest, terrorism, possible expropriation, local labor conditions (including labor disruptions or shortages), changes in laws, regulations, and policies of foreign governments and trade disputes with the United States (including tariffs), and compliance with U.S. laws affecting activities of U.S. companies abroad, including tax laws, economic sanctions and enforcement of contract and intellectual property rights.
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To the extent that these proposals are implemented in any jurisdictions in which we operate, these developments could negatively impact our effective tax rate as well as increase the tax compliance and reporting costs related to such requirements.
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Steps taken by the U.S. government to apply new, or increase existing, tariffs on certain products and materials imported into the United States could potentially disrupt our existing supply chains and impose additional costs on our business, including costs with respect to raw materials upon which our business depends.
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We are subject to the U.S. Foreign Corrupt Practices Act and other anti-corruption laws, as well as other international trade and regulatory laws governing our operations.
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Additionally, potential retaliatory tariffs imposed by other countries in response to U.S. trade policies could adversely affect our ability to export products from the United States to key international markets, leading to decreased sales and profitability.
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If our warranty reserves are significantly exceeded, the costs associated with such warranties could have a material adverse effect on our financial position, results of operations, and cash flows.
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Such retaliatory tariffs could also increase the cost of certain components and materials that we import into the United States, further straining our supply chain and impacting our overall financial performance.
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In addition, our financial results, our level of indebtedness, and our credit ratings could adversely affect the availability and terms of any additional or replacement financing.
Added
The impact of new ongoing or escalated military and geopolitical conflicts and tensions, including the conflict between Russia and Ukraine and the conflict in Israel and the surrounding areas, on the global economy, energy supplies and raw materials may prove to negatively impact our business and operations.
Added
These conflicts and tensions and other military or geopolitical conflicts or tensions that may arise in the future could materially adversely affect our operations, financial position, and results. Our business, financial condition, and results of operations have been, and may again be, adversely affected by global pandemics or other health emergencies.
Added
Additionally, we cannot predict the extent to which a change in monitoring, assessing, or reporting of ESG matters may impact our operations, financial conditions and results.
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The outcome of these proceedings, matters, and claims, and the magnitude of related costs and liabilities, are subject to uncertainties.
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We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes.
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In particular, the Organization for Economic Cooperation and Development (OECD) has developed an Inclusive Framework on Base Erosion and Profit Shifting, including Pillar Two model rules applicable to large multinational corporations which would establish a global per-country minimum tax of 15%.
Added
While the United States has not enacted legislation to adopt Pillar Two and it is uncertain if it will do so in the future, certain countries in which we operate have enacted such legislation.
Added
Specifically, the Canadian government enacted legislation in 2024 implementing aspects of the OECD’s minimum tax rules effective in the 2024 fiscal year and released draft legislation proposed to implement further aspects effective for the 2025 fiscal year.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeTo more effectively share information and gain consensus regarding cybersecurity initiatives and prevention policies, the Company has in place a Cyber Council consisting of various members of LP senior leadership and the Chief Information Officer. The Cyber Council is chaired by our ISO.
Biggest changeTo more effectively share information and gain consensus regarding cybersecurity initiatives and prevention policies, the Company has in place an Enterprise Risk Management Committee consisting of various members of LP senior leadership including the Chief Legal Counsel and Chief Financial Officer. The Enterprise Risk Management Committee is chaired by our Chief Tax Officer.
Management Responsibilities Our cybersecurity program is managed by our Information Security Officer (ISO). Our ISO has over five years of cybersecurity experience working in publicly traded companies, with expertise leading risk remediation efforts in vulnerability management, network security, security awareness, threat monitoring, data security and cloud security.
Management Responsibilities Our cybersecurity program is managed by our Information Security Officer (ISO). Our ISO has over six years of cybersecurity experience working in publicly traded companies, with expertise leading risk remediation efforts in vulnerability management, network security, security awareness, threat monitoring, data security and cloud security.
The FAC oversees our cybersecurity program. The ISO provides the FAC with an annual presentation on our cybersecurity program, emerging threats, and the state of LP’s cybersecurity maturity. In addition, the ISO provides updates to the FAC no less often than quarterly with respect to materials regarding the cybersecurity program. 28
The FAC oversees our cybersecurity program. The ISO provides the FAC with an annual presentation on our cybersecurity program, emerging threats, and the state of LP’s cybersecurity maturity. In addition, the ISO provides updates to the FAC no less often than annually with respect to additional information regarding the cybersecurity program. 28
The Cyber Council (i) meets semi-annually to review and discuss the Company’s cybersecurity risks and threats, incident responses, technology, the status of projects to strengthen the Company’s information security systems, assessments of the Company’s cybersecurity program and the emerging threat landscape and (ii) reports risks related to any material cybersecurity incidents, as needed, to the Board of Directors and the Finance and Audit Committee (FAC) of the Board of Directors. 27 Board Responsibilities Oversight of risks from cybersecurity threats is shared by the Board of Directors and the FAC.
The Enterprise Risk Management Committee (i) meets quarterly and as-needed to review and discuss the Company’s risks, including cybersecurity threats, incident responses, technology, the status of projects to strengthen the Company’s information security systems, assessments of the Company’s cybersecurity program and the emerging threat landscape and (ii) reports risks related to any material cybersecurity incidents, as needed, to the Board of Directors and the Finance and Audit Committee (FAC) of the Board of Directors. 27 Board Responsibilities Oversight of risks from cybersecurity threats is shared by the Board of Directors and the FAC.
We evaluate third-party cybersecurity risk controls through various assessment activities carried out by LP employees and by third-party service providers acting on our behalf. We engage an independent third party to conduct a biennial Security Program Assessment under the National Institute of Standards and Technology Cybersecurity framework.
We evaluate third-party cybersecurity risk controls through various assessment activities carried out by LP employees and by third-party service providers acting on our behalf. We engage an independent third party to conduct an annual Security Program Assessment under the Capability Maturity Model Integration framework.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeOSB 2 Siding 3 OSB production facilities - 3/8” basis, million square feet Siding production facilities - 3/8” basis, million square feet Carthage, TX 500 Dawson Creek, British Columbia, Canada 1 300 Clarke County, AL 725 Hayward, WI 1 475 Hanceville, AL 420 Houlton, ME 1 220 Jasper, TX 475 Newberry, MI 165 Maniwaki, Quebec, Canada 650 Sagola, MI 1 300 Peace Valley, British Columbia, Canada 800 Swan Valley, Manitoba, Canada 1 380 Roxboro, NC 525 Tomahawk, WI 245 7 facilities 4,095 Two Harbors, MN 235 8 facilities 2,320 LPSA Siding finishing facilities - 3/8” basis, million square feet OSB/Siding production facilities - 3/8” basis, million square feet Bath, NY 55 Lautaro, Chile 160 Green Bay, WI 105 Panguipulli, Chile 300 Granite City, IL 4 25 Ponta Grossa, Brazil 330 Roaring River, NC 75 3 facilities 790 4 facilities 260 1 The Dawson Creek, British Columbia, Canada; Hayward, WI; Houlton, ME; Sagola, MI; and Swan Valley, Manitoba, Canada plants are used in the operations of our Siding segment but can also produce commodity OSB when market conditions warrant. 2 In addition to the OSB plants listed, we own a facility in Watkins, MN, which supports our LP Structural Solutions portfolio and a logging operation in Maniwaki, Ontario, Canada, which supports our OSB operations at that location. 3 In May 2023, we acquired an idle manufacturing facility in Wawa, Ontario, Canada.
Biggest changeOSB 2 Siding 3 OSB production facilities - 3/8” basis, million square feet Siding production facilities - 3/8” basis, million square feet Carthage, TX 500 Dawson Creek, British Columbia, Canada 1 300 Clarke County, AL 725 Hayward, WI 1 475 Hanceville, AL 420 Houlton, ME 1 220 Jasper, TX 475 Newberry, MI 165 Maniwaki, Quebec, Canada 650 Sagola, MI 1 300 Peace Valley, British Columbia, Canada 800 Swan Valley, Manitoba, Canada 1 380 Roxboro, NC 525 Tomahawk, WI 245 7 facilities 4,095 Two Harbors, MN 235 8 facilities 2,320 LPSA OSB/Siding production facilities - 3/8” basis, million square feet Siding finishing facilities - 3/8” basis, million square feet Lautaro, Chile 160 Bath, NY 55 Panguipulli, Chile 300 Green Bay, WI 105 Ponta Grossa, Brazil 330 Roaring River, NC 75 3 facilities 790 3 facilities 235 1 The Dawson Creek, British Columbia, Canada; Hayward, WI; Houlton, ME; Sagola, MI; and Swan Valley, Manitoba, Canada plants are used in the operations of our Siding segment but can also produce commodity OSB when market conditions warrant. 2 In addition to the OSB plants listed, we own a facility in Watkins, MN, which supports our LP ® Structural Solutions portfolio and a logging operation in Maniwaki, Ontario, Canada, which supports our OSB operations at that location. 3 We routinely evaluate project schedules and market demand to determine when to begin related construction work on Siding Solutions capacity expansion projects. 29
Removed
We anticipate converting the Wawa manufacturing facility into an LP SmartSide Trim & Siding mill in the future. We are evaluating project schedules and market demand to determine when we would begin related construction work. 4 The Granite City, IL facility is scheduled for closure in 2024. 29

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeLP may initiate, discontinue, or resume purchases of its common stock under the 2022 Share Repurchase Program in the open market, in block, and in privately negotiated transactions, including under Rule 10b5-1 plans, at times and in such amounts as management deems appropriate without prior notice, subject to market and business conditions, regulatory requirements, and other factors. 31 PERFORMANCE GRAPH The following graph compares the cumulative total return to investors, including dividends paid (assuming reinvestment of dividends) and appreciation or depreciation in stock price, from an investment in LP common stock for the period from December 31, 2018 through December 31, 2023, to the total cumulative return to investors from the Standard & Poor’s 500 Stock Index and Standard & Poor’s Building Products Index for the same period.
Biggest changeLP may initiate, discontinue, or resume purchases of its common stock under the 2024 Share Repurchase Program in the open market, in block, or in privately negotiated transactions, including under Rule 10b5-1 plans, at times and in such amounts as management deems appropriate without prior notice, subject to market and business conditions, regulatory requirements, and other factors.
ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The common stock of LP is listed on the New York Stock Exchange with the ticker symbol “LPX.” As of February 12, 2024, there were approximately 3,456 holders of record of our common stock.
ITEM 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities The common stock of LP is listed on the New York Stock Exchange with the ticker symbol “LPX.” As of February 14, 2025, there were approximately 3,243 stockholders of record of our common stock.
DIVIDEND POLICY We paid quarterly cash dividends of $0.24 per share for each quarter of 2023. We paid quarterly cash dividends of $0.22 per share for each quarter of 2022.
DIVIDEND POLICY We paid quarterly cash dividends of $0.26 per share for each quarter of 2024. We paid quarterly cash dividends of $0.24 per share for each quarter of 2023.
As of December 31, 2023, LP had $200 million remaining under the 2022 Share Repurchase Program.
As of December 31, 2024, LP had $238 million of repurchase authorization remaining under the 2024 Share Repurchase Program.
On February 9, 2024, we declared a quarterly dividend of $0.26 per share, payable on March 8, 2024, to stockholders of record as of the close of business on February 23, 2024.
On February 14, 2025, we declared a quarterly dividend of $0.28 per share, payable on March 13, 2025, to stockholders of record as of the close of business on February 27, 2025.
ISSUER PURCHASES OF EQUITY SECURITIES In May 2022, LP's Board of Directors authorized a share repurchase plan under which LP was authorized to repurchase shares of its common stock totaling up to $600 million (the 2022 Share Repurchase Program). No purchases were made under the 2022 Share Repurchase Program during the year ended December 31, 2023.
ISSUER PURCHASES OF EQUITY SECURITIES During May 2022 and May 2024, LP's Board of Directors authorized share repurchase programs under which LP was authorized to repurchase up to $600 million (the 2022 Share Repurchase Program) and $250 million (the 2024 Share Repurchase Program), respectively, of its outstanding common stock.
Added
The following amount of our common stock was repurchased under this authorization during the quarter ended December 31, 2024: Period Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Purchase Plans or Programs 1 Approximate Dollar Value of Shares Available for Repurchase Under the Plans or Programs (in millions) October 1, 2024 - October 31, 2024 — $ — — $ 262 November 1, 2024 - November 30, 2024 — $ — — $ 262 December 1, 2024 - December 31, 2024 219,662 $ 108.63 219,662 $ 238 Total for Fourth Quarter 2024 219,662 219,662 1 On May 3, 2022, LP’s Board of Directors authorized the 2022 Share Repurchase Program under which LP may repurchase shares of its common stock totaling up to $600 million.
Added
On May 7 , 2024, LP’s Board of Directors authorized the 2024 Share Repurchase Program under whi ch LP may repurchase shares of its common stock totaling up to $250 million. 31 PERFORMANCE GRAPH The following graph compares the cumulative total return to investors, including dividends paid (assuming reinvestment of dividends) and appreciation or depreciation in stock price, from an investment in LP common stock for the period from December 31, 2019 through December 31, 2024, to the total cumulative return to investors from the Standard & Poor’s 500 Stock Index and Standard & Poor’s Building Products Index for the same period.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

47 edited+9 added−12 removed45 unchanged
Biggest changeWe did not revise prior years’ Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS amounts because there were no significant costs similar in nature to these items. 36 The following table presents significant items by operating segment and reconciles net income to Adjusted EBITDA (dollar amounts in millions): Year ended December 31, 2023 2022 2021 Net income $ 178 $ 1,083 $ 1,373 Add (deduct): Net loss attributed to non-controlling interest — 3 4 Income from discontinued operations, net of income taxes — (198) (71) Income attributed to LP from continuing operations $ 178 $ 888 $ 1,306 Provision for income taxes 74 274 402 Depreciation and amortization 119 129 114 Stock-based compensation expense 13 19 16 Loss on impairment attributed to LP 6 1 5 Other operating credits and charges, net 18 (16) (1) Business exit charges 32 — — Pension settlement charges 4 82 2 Interest expense 14 11 14 Investment income (18) (14) (1) Loss on early debt extinguishment — — 11 Other non-operating items 39 15 9 Adjusted EBITDA $ 478 $ 1,389 $ 1,877 Siding 269 339 289 OSB 220 1,034 1,531 LPSA 42 77 113 Other (17) (23) (20) General corporate and other expenses, net (36) (38) (36) Total Adjusted EBITDA $ 478 $ 1,389 $ 1,877 37 The following table provides the reconciliation of net income to Adjusted income (dollar amounts in millions, except earnings per share): Year ended December 31, 2023 2022 2021 Net income attributed to LP from continuing operations per share - diluted $ 2.46 $ 11.34 $ 13.37 Net income $ 178 $ 1,083 $ 1,373 Add (deduct): Net loss attributed to non-controlling interest — 3 4 Income from discontinued operations, net of income taxes — (198) (71) Income attributed to LP from continuing operations 178 888 1,306 Loss on impairment attributed to LP 6 1 5 Other operating credits and charges, net 18 (16) (1) Business exit charges 32 — — Loss on early debt extinguishment — — 11 Pension settlement charges 4 82 2 Reported tax provision 74 274 402 Adjusted income before tax 311 1,229 1,725 Normalized tax provision at 25% (78) (307) (431) Adjusted income $ 233 $ 922 $ 1,294 Diluted shares outstanding 72 78 98 Adjusted Diluted EPS $ 3.22 $ 11.77 $ 13.24 OUR OPERATING RESULTS Our results of operations for each of our segments are discussed below, as are results of operations for the “other” category, which comprises other products that are not individually significant.
Biggest changeAdjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS have material limitations as performance measures because they exclude items that are actually incurred or experienced in connection with the operation of our business. 36 The following table presents significant items by operating segment and reconciles net income to Adjusted EBITDA (dollar amounts in millions): Year ended December 31, 2024 2023 2022 Net income $ 420 $ 178 $ 1,083 Add (deduct): Net loss attributed to non-controlling interest — — 3 Income from discontinued operations, net of income taxes — — (198) Income attributed to LP from continuing operations $ 420 $ 178 $ 888 Provision for income taxes 140 74 274 Depreciation and amortization 126 119 129 Stock-based compensation expense 20 13 19 Loss on impairment attributed to LP 5 6 1 Other operating credits and charges, net 8 18 (16) Business exit credits and charges (14) 32 — Pension settlement charges — 4 82 Interest expense 14 14 11 Investment income (22) (18) (14) Other non-operating items (9) 39 15 Adjusted EBITDA $ 688 $ 478 $ 1,389 Siding 390 269 339 OSB 298 220 1,034 LPSA 42 42 77 Other (8) (17) (23) General corporate and other expenses, net (34) (36) (38) Total Adjusted EBITDA $ 688 $ 478 $ 1,389 37 The following table provides the reconciliation of net income to Adjusted income (dollar amounts in millions, except earnings per share): Year ended December 31, 2024 2023 2022 Net income attributed to LP from continuing operations per share - diluted $ 5.89 $ 2.46 $ 11.34 Net income $ 420 $ 178 $ 1,083 Add (deduct): Net loss attributed to non-controlling interest — — 3 Income from discontinued operations, net of income taxes — — (198) Income attributed to LP from continuing operations 420 178 888 Loss on impairment attributed to LP 5 6 1 Other operating credits and charges, net 8 18 (16) Business exit credits and charges (14) 32 — Pension settlement charges — 4 82 Reported tax provision 140 74 274 Adjusted income before tax 559 311 1,229 Normalized tax provision at 25% (140) (78) (307) Adjusted income $ 419 $ 233 $ 921 Diluted shares outstanding 71 72 78 Adjusted Diluted EPS $ 5.88 $ 3.22 $ 11.77 OUR OPERATING RESULTS Our results of operations for each of our segments are discussed below, as are results of operations for the “other” category, which comprises other products that are not individually significant.
In this annual report on Form 10-K, we disclose income attributed to LP from continuing operations before interest expense, provision for income taxes, depreciation and amortization, and excluding stock-based compensation expense, loss on impairment attributed to LP, product-line discontinuance charges, business exit charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items, as Adjusted EBITDA from continuing operations (Adjusted EBITDA), which is a non-GAAP financial measure.
In this annual report on Form 10-K, we disclose income attributed to LP from continuing operations before interest expense, provision for income taxes, depreciation and amortization, and excluding stock-based compensation expense, loss on impairment attributed to LP, business exit credits and charges, product-line discontinuance charges, other operating credits and charges, net, loss on early debt extinguishment, investment income, pension settlement charges, and other non-operating items, as Adjusted EBITDA from continuing operations (Adjusted EBITDA), which is a non-GAAP financial measure.
We also disclose income attributed to LP from continuing operations, excluding loss on impairment attributed to LP, business exit charges, product-line discontinuance charges, interest expense outside of normal operations, other operating credits and charges, net, loss on early debt extinguishment, gain (loss) on acquisition, and pension settlement charges, and adjusting for a normalized tax rate as Adjusted Income from continuing operations (Adjusted Income).
We also disclose income attributed to LP from continuing operations, excluding loss on impairment attributed to LP, business exit credits and charges, product-line discontinuance charges, interest expense outside of normal operations, other operating credits and charges, net, loss on early debt extinguishment, gain (loss) on acquisition, and pension settlement charges, and adjusting for a normalized tax rate, as Adjusted Income from continuing operations (Adjusted Income).
Supply and Demand for Siding Our Siding Solutions products are specialty building materials and are subject to competition from various siding technologies, including vinyl, stucco, wood, fiber cement, brick, and others. We believe we are the largest manufacturer in the engineered wood siding market in North America and South America.
Supply and Demand for Siding Our Siding Solutions products are specialty building materials and are subject to competition from various siding technologies, including vinyl, stucco, wood, fiber cement, brick, and others. We believe we are the largest manufacturer of engineered wood siding in North America and South America.
As of December 31, 2023, we had no amounts outstanding under the Amended Credit Facility. The Credit Agreement contains various restrictive covenants and customary events of default, the occurrence of which could result in the acceleration of our obligation to repay the indebtedness outstanding thereunder.
As of December 31, 2024, we had no amounts outstanding under the Amended Credit Facility. The Credit Agreement contains various restrictive covenants and customary events of default, the occurrence of which could result in the acceleration of our obligation to repay the indebtedness outstanding thereunder.
Management’s Discussion and Analysis of Financial Condition and Results of Operations This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our Consolidated Financial Statements and related Notes and other financial information appearing elsewhere in this annual report on Form 10-K, and with Part II, Item 7 "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K for our fiscal year ended December 31, 2022, filed with the SEC on February 21, 2023, which provides a discussion of our financial condition and results of operations for fiscal year 2022 compared to fiscal year 2021.
Management’s Discussion and Analysis of Financial Condition and Results of Operations This Management's Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our Consolidated Financial Statements and related Notes and other financial information appearing elsewhere in this annual report on Form 10-K, and with Part II, Item 7 "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in our annual report on Form 10-K for our fiscal year ended December 31, 2023, filed with the SEC on February 14, 2024, which provides a discussion of our financial condition and results of operations for fiscal year 2023 compared to fiscal year 2022.
See further discussion in “Note 7 - Business Exit Charges” of the Notes to the Consolidated Financial Statements included in Item 8 of this annual report on Form 10-K.
See further discussion in “Note 7 - Business Exit Credits and Charges” of the Notes to the Consolidated Financial Statements included in Item 8 of this annual report on Form 10-K.
Thus, we do not currently believe that a material change in the amounts recorded as customer program costs payable is reasonably likely. We had $37 million and $46 million accrued as customer rebates as of December 31, 2023 and 2022, respectively. We ship some of our products to customers' distribution centers on a consignment basis.
Thus, we do not currently believe that a material change in the amounts recorded as customer program costs payable is reasonably likely. We had $48 million and $37 million accrued as customer rebates as of December 31, 2024 and 2023, respectively. We ship some of our products to customers' distribution centers on a consignment basis.
LOSS ON IMPAIRMENTS During 2023, we recorded $30 million of non-cash, pre-tax impairment charges, $24 million of which was related to the shutdown of Entekra, including $13 million of property, plant, and equipment, $9 million of intangible assets, and $3 million related to operating lease assets.
During 2023, we recorded $30 million of non-cash, pre-tax impairment charges, $24 million of which was related to the shutdown of Entekra, including $13 million of property, plant, and equipment, $9 million of intangible assets, and $3 million related to operating lease assets.
Adjusted EBITDA was $(17) million for 2023 as compared to $(23) million in 2022. 40 GENERAL CORPORATE AND OTHER EXPENSE, NET General corporate and other expenses primarily comprise corporate overhead unrelated to business activities such as wages and benefits, professional fees, insurance, and other expenses for corporate functions, including certain executive officers, public company activities, tax, internal audits, and other corporate functions.
Adjusted EBITDA was $(8) million for 2024, as compared to $(17) million in 2023. 40 GENERAL CORPORATE AND OTHER EXPENSE, NET General corporate and other expenses primarily comprise corporate overhead unrelated to business activities such as wages and benefits, professional fees, insurance, and other expenses for corporate functions, including certain executive officers, public company activities, tax, internal audits, and other corporate functions.
Siding The Siding segment serves diverse end markets with a broad product offering of engineered wood siding, trim, and fascia, including LP SmartSide Trim & Siding, LP SmartSide ExpertFinish Trim & Siding, LP BuilderSeries Lap Siding, and LP Outdoor Building Solutions (collectively referred to as Siding Solutions).
Siding The Siding segment serves diverse end markets with a broad product portfolio of engineered wood siding, trim, soffit, and fascia, including LP ® SmartSide ® Trim & Siding, LP ® SmartSide ® ExpertFinish ® Trim & Siding, LP BuilderSeries ® Lap Siding, and LP ® Outdoor Building Solutions ® (collectively referred to as Siding Solutions).
We expect to fund our short-term and long-term capital expenditures in 2024 through cash on hand, cash generated from operations, and available borrowing under our Amended Credit Facility, as necessary. Financing Activities During 2023, cash used in financing activities was $77 million.
We expect to fund our short-term and long-term capital expenditures in 2025 through cash on hand, cash generated from operations, and available borrowing under our Amended Credit Facility, as necessary. Financing Activities During 2024, cash used in financing activities was $292 million.
NON-OPERATING INCOME (EXPENSE) For a discussion of non-operating income (expense), see "Note 12 - Other Operating and Non-Operating Income (Expense)" of the Notes to the Consolidated Financial Statements included in Item 8 of this annual report on Form 10-K. INCOME TAXES We recognized a tax provision of $74 million in 2023 compared to $274 million in 2022.
NON-OPERATING INCOME (EXPENSE) For a discussion of non-operating income (expense), see "Note 12 - Other Operating and Non-Operating Income (Expense)" of the Notes to the Consolidated Financial Statements included in Item 8 of this annual report on Form 10-K. INCOME TAXES We recognized a tax provision of $140 million in 2024, as compared to $74 million in 2023.
Contingency Reserves Contingency reserves, which represent an estimate of future cash needs for various contingencies (principally, environmental reserves), totaled $26 million at December 31, 2023, of which $1 million is estimated to be payable within one year of such date.
Contingency Reserves Contingency reserves, which represent an estimate of future cash needs for various contingencies (principally, environmental reserves), totaled $28 million at December 31, 2024, of which $1 million is estimated to be payable within one year of such date.
OSB The OSB segment manufactures and distributes OSB structural panel products, including our value-added OSB portfolio known as LP Structural Solutions (which includes LP TechShield Radiant Barrier, LP WeatherLogic Air & Water Barrier, LP Legacy Premium Sub-Flooring, LP NovaCore Thermal Insulated Sheathing, LP FlameBlock Fire-Rated Sheathing, and LP TopNotch Sub-Flooring).
OSB The OSB segment manufactures and distributes OSB structural panel products, including the innovative value-added OSB product portfolio known as LP ® Structural Solutions (which includes LP ® TechShield ® Radiant Barrier, LP WeatherLogic ® Air & Water Barrier, LP Legacy ® Premium Sub-Flooring, LP NovaCore ® Thermal Insulated Sheathing, LP ® FlameBlock ® Fire-Rated Sheathing, and LP ® TopNotch ® 350 Durable Sub-Flooring).
Any such repurchases may be commenced, suspended, discontinued, or resumed, and the method or methods of affecting any such repurchases may be changed at any time, or from time to time, without prior notice. Operating Activities During 2023, we generated $316 million of cash from operations as compared to $1,144 million in 2022.
Any such repurchases may be commenced, suspended, discontinued, or resumed, and the method or methods of affecting any such repurchases may be changed at any time, or from time to time, without prior notice. Operating Activities During 2024, we generated $605 million of cash from operations, as compared to $316 million in 2023.
As of December 31, 2023, we had other purchase obligations of $43 million, with $21 million payable within 12 months of such date. Off-Balance Sheet Arrangements As of December 31, 2023, we had standby letters of credit of $14 million outstanding related to collateral for environmental impact on owned properties, deposit for forestry license, and insurance collateral, including workers' compensation.
As of December 31, 2024, we had other purchase obligations of $47 million, with $25 million payable within 12 months of such date. Off-Balance Sheet Arrangements As of December 31, 2024, we had standby letters of credit of $14 million outstanding related to collateral for environmental impact on owned properties, deposit for forestry license, and insurance collateral, including workers' compensation.
Demand for Building Products Demand for our products correlates positively with new home construction and repair and remodeling activity in North America, which historically have been characterized by significant cyclicality. The U.S. Census Bureau reported on January 18, 2024, that 2023 actual single-family housing starts were 6% lower than those in 2022.
Demand for Building Products Demand for our products correlates positively with new home construction and repair and remodeling activity in North America, which historically have been characterized by significant cyclicality. The U.S. Census Bureau reported on January 17, 2025, that 2024 actual single-family housing starts were 7% higher than those in 2023.
As of December 31, 2023, future interest payments associated with the 2029 Senior Notes totaled $70 million, with $13 million payable within 12 months of such date.
As of December 31, 2024, future interest payments associated with the 2029 Senior Notes totaled $54 million, with $13 million payable within 12 months of such date.
The overall siding market is estimated to be a $17 billion industry. We have consistently grown our Siding segment above the underlying market growth rates. Our Siding segment is generally less sensitive to new housing market cyclicality since a majority of its demand comes from other markets, including off-site structure producers and repair and remodel.
The global siding market is estimated to be approximately $120 billion of annual expenditure. We have consistently grown our Siding segment above the underlying market growth rates. Our Siding segment is generally less sensitive to new housing market cyclicality since a majority of its demand comes from other markets, including off-site structure producers and repair and remodel.
As of December 31, 2023, we had fixed lease payment obligations of $34 million, with $7 million payable within 12 months of such date. 43 Other Purchase Obligations Our other purchase obligations primarily consist of obligations related to information technology infrastructure.
As of December 31, 2024, we had fixed lease payment obligations of $35 million, with $9 million payable within 12 months of such date. 43 Other Purchase Obligations Our other purchase obligations primarily consist of obligations related to information technology infrastructure.
Net sales decreased year-over-year by $61 million (or 73%) to $22 million primarily due to lower Entekra sales volumes as a result of the aforementioned shutdown.
Net sales decreased year-over-year by $12 million (or 56%) to $9 million primarily due to lower Entekra sales volumes as a result of the aforementioned shutdown.
The decrease in cash provided by operations was primarily related to lower net income and higher working capital. At December 31, 2023 and 2022, we had working capital of $296 million and $148 million, respectively. Investing Activities During 2023, net cash used for investing activities was $376 million as compared to $146 million in 2022.
The increase in cash provided by operations was primarily related to higher net income and changes in working capital. At December 31, 2024 and 2023, we had working capital of $216 million and $296 million, respectively. Investing Activities During 2024, net cash used for investing activities was $183 million, as compared to $376 million in 2023.
Further, $6 million of non-cash, pre-tax impairment charges were recognized related to the Granite City, Illinois facility which is scheduled for closure in 2024, including $4 million of property, plant, and equipment and $2 million related to operating lease assets. During 2022, we recognized $1 million of pre-tax impairment charges.
Further, $6 million of non-cash, pre-tax impairment charges were recognized related to the Granite City, Illinois facility closure, including $4 million of property, plant, and equipment and $2 million related to operating lease assets.
Capital expenditures for the year ended December 31, 2023 and 2022, were $300 million and $414 million, respectively, primarily related to siding conversion expenditures and growth and maintenance capital. Capital expenditures in 2024 are expected to be in the range of $200 million to $220 million.
Capital expenditures for the year ended December 31, 2024, and 2023, were $183 million and $300 million, respectively, primarily related to siding conversion expenditures and growth and maintenance capital. Capital expenditures in 2025 are expected to be approximately $410 million.
Actual multi-family housing starts in 2023 were about 14% lower than those in 2022. Repair and remodeling activity is difficult to reasonably measure, but many indications suggest that repair and remodeling activity is moderating and may have exhibited year-over-year declines.
Actual multi-family housing starts in 2024 were about 25% lower than those in 2023. Repair and remodeling activity is difficult to reasonably measure, but many indications suggest that repair and remodeling activity has declined modestly year-over-year.
The Letter of Credit Facility includes an unused commitment fee, due quarterly, ranging from 0.50% to 1.875% of the daily available amount to be drawn on each letter of credit issued under the Letter of Credit Facility.
The Letter of Credit Facility provides for a letter of credit fee, due quarterly, ranging from 1.000% to 1.875% of the daily available amount to be drawn on each letter of credit issued under the Letter of Credit Facility.
Other Our other products segment includes the off-site framing operation Entekra Holdings LLC (Entekra), remaining timber and timberlands, and other minor products, services, and closed operations, which do not qualify as discontinued operations.
Other Our other products segment includes timber and timberlands as well as other minor products, services, and closed operations, which do not qualify as discontinued operations.
OTHER LIQUIDITY MATTERS 2029 Senior Notes In March 2021, we issued the 3.625% Senior notes due in 2029 in the aggregate principal amount of $350 million, which mature on March 15, 2029 (2029 Senior Notes).
As of December 31, 2024, we were in compliance with all financial covenants under the Letter of Credit Facility. OTHER LIQUIDITY MATTERS 2029 Senior Notes In March 2021, we issued the 3.625% Senior notes due in 2029 in the aggregate principal amount of $350 million, which mature on March 15, 2029 (2029 Senior Notes).
Segment net sales and Adjusted EBITDA for this segment were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2023 2022 2023 - 2022 Net sales $ 1,328 $ 1,469 (10) % Adjusted EBITDA 269 339 (21) % Net sales in this segment by product line were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2023 2022 2023 - 2022 Siding Solutions $ 1,319 $ 1,463 (10) % Other 9 6 41 % Total $ 1,328 $ 1,469 38 Percent changes in average net sales price and unit shipments were as follows: 2023 versus 2022 Average Selling Price Unit Shipments Siding Solutions 5 % (14) % List price increases drove year-over-year increases in the average net selling price for 2023.
Segment net sales and Adjusted EBITDA for this segment were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2024 2023 2024 - 2023 Net sales $ 1,558 $ 1,328 17 % Adjusted EBITDA 390 269 45 % Net sales in this segment by product line were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2024 2023 2024 - 2023 Siding Solutions $ 1,549 $ 1,319 17 % Other 9 9 (1) % Total $ 1,558 $ 1,328 38 Percent changes in average net sales price and unit shipments were as follows: 2024 versus 2023 Average Selling Price Unit Shipments Siding Solutions 6 % 11 % The year-over-year net sales increase for the Siding segment for the twelve months ended December 31, 2024 reflects increased sales volumes and higher average selling prices.
For 2023, the primary differences between the U.S. statutory rate of 21% and the effective rate was related to the $25 million tax expense impact from a change in management’s intent to indefinitely reinvest undistributed earnings in Chile and Brazil. See “Note 8 – Income Taxes” below for further discussion.
For 2024, the primary differences between the U.S. statutory rate of 21% and the effective rate was related to state and foreign income taxes. For 2023, the primary difference between the U.S. statutory rate of 21% and the effective tax rate was related to a change in management’s intent to indefinitely reinvest undistributed earnings in Chile and Brazil.
The Letter of Credit Facility is subject to similar affirmative, negative, and financial covenants as those set forth in the Credit Agreement, including the capitalization ratio covenant. As of December 31, 2023, we were in compliance with all financial covenants under the Letter of Credit Facility.
The Letter of Credit Facility is subject to similar affirmative, negative, and financial covenants as those set forth in the Credit Agreement, including the capitalization ratio covenant. All amounts outstanding under the Letter of Credit Facility become due on April 15, 2029.
During the year ended December 31, 2022, we used $900 million to repurchase shares of LP common stock ($500 million from the Second 2021 Share Repurchase Program and $400 million from the 2022 Share Repurchase Program). Additionally, during the year ended December 31, 2022, we paid cash dividends of $69 million.
We paid cash dividends of $74 million and $212 million to repurchase shares of LP common stock under the 2022 Share Repurchase Program and 2024 Share Repurchase Program during the year ended December 31, 2024.
We paid cash dividends of $69 million and borrowed and subsequently repaid $80 million from our Amended Credit Facility during the year ended December 31, 2023. The remaining financing activities were primarily related to funds used to repurchase stock from employees in connection with income tax withholding requirements associated with our employee stock-based compensation plans.
The remaining financing activities were primarily related to funds used to repurchase stock from employees in connection with income tax withholding requirements associated with our employee stock-based compensation plans. During 2023, cash used in financing activities was $77 million.
We also disclose Adjusted Diluted EPS from continuing operations (Adjusted Diluted EPS), calculated as Adjusted Income divided by diluted shares outstanding. We believe that Adjusted Diluted EPS and Adjusted Income are useful measures for evaluating our ability to generate earnings and that providing these measures should allow interested persons to more readily compare the earnings for past and future periods.
We believe that Adjusted Diluted EPS and Adjusted Income are useful measures for evaluating our ability to generate earnings and that providing these measures should allow interested persons to more readily compare the earnings for past and future periods. Reconciliations of Adjusted EBITDA, Adjusted Income and Adjusted Diluted EPS to their most directly comparable U.S.
OSB is manufactured using wood strands arranged in layers and bonded with resins. Significant cost inputs to produce OSB (including approximate breakdown percentages for 2023) were as follows: wood fiber (26%), resin and wax (23%), labor and burden (18%), utilities (5%), and other manufacturing costs (28%).
Significant cost inputs to produce OSB (including approximate breakdown percentages for 2024) were as follows: wood fiber (27%), resin and wax (21%), labor and burden (18%), utilities (5%), and other manufacturing costs (29%).
As of December 31, 2023, we were in compliance with all financial covenants under the Credit Agreement. In March 2020, LP entered into the Letter of Credit Facility, which provides for the funding of letters of credit up to an aggregate outstanding amount of $20 million, which may be secured by certain cash collateral of LP.
This agreement provides for the funding of letters of credit up to an aggregate outstanding amount of $20 million, which may be secured by certain cash collateral of LP (the Letter of Credit Facility).
Reconciliations of Adjusted EBITDA, Adjusted Income and Adjusted Diluted EPS to their most directly comparable U.S. GAAP financial measure, are presented below. Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS are not substitutes for the U.S.
GAAP financial measures, net income, income attributed to LP and income attributed to LP per diluted share, respectively, are presented below. Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS are not substitutes for the U.S.
Segment net sales and Adjusted EBITDA for this segment were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2023 2022 2023 - 2022 Net sales $ 205 $ 241 (15) % Adjusted EBITDA 42 77 (46) % Net sales in this segment by product were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2023 2022 2023 - 2022 OSB - Structural Solutions $ 177 $ 215 (18) % Siding 24 23 6 % Other 4 3 4 % Total $ 205 $ 241 Percent changes in average net sales prices and unit shipments for 2023 compared to 2022 were as follows: 2023 versus 2022 Average Selling Price Unit Shipments OSB (9) % (9) % Siding 7 % (1) % LPSA net sales for full year 2023 decreased year-over-year by $36 million driven by lower OSB sales volumes and average selling prices.
Segment net sales and Adjusted EBITDA for this segment were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2024 2023 2024 - 2023 Net sales $ 190 $ 205 (8) % Adjusted EBITDA 42 42 — % Net sales in this segment by product were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2024 2023 2024 - 2023 OSB - Structural Solutions $ 163 $ 177 (8) % Siding Solutions 21 24 (13) % Other 6 4 61 % Total $ 190 $ 205 Percent changes in average net sales prices and unit shipments for 2024 compared to 2023 were as follows: 2024 versus 2023 Average Selling Price Unit Shipments OSB (16) % 9 % Siding (18) % 6 % The year-over-year net sales decrease and flat Adjusted EBITDA for the twelve months ended December 31, 2024, reflect lower selling prices and unfavorable currency fluctuations, partially offset by higher sales volumes and the non-recurrence of equipment transfer costs from the prior year.
The LPSA segment carries out manufacturing operations in Chile and Brazil and operates sales offices in Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru.
This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction. The LPSA segment carries out manufacturing operations in Chile and Brazil and operates sales offices in Argentina, Brazil, Chile, Colombia, Mexico, Paraguay, and Peru.
Segment net sales and Adjusted EBITDA for this segment were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2023 2022 2023 - 2022 Net sales $ 1,026 $ 2,062 (50) % Adjusted EBITDA 220 1,034 (79) % Net sales in this segment by product line were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2023 2022 2023 - 2022 OSB - Structural Solutions $ 565 $ 1,110 (49) % OSB - Commodity 446 938 (52) % Other 15 14 5 % Total $ 1,026 $ 2,062 Percent changes in average net sales prices and unit shipments were as follows: 2023 versus 2022 Average Selling Price Unit Shipments OSB - Structural Solutions (41) % (14) % OSB - Commodity (39) % (22) % Full year 2023 net sales decreased year-over-year by $1,036 million (or 50%) including a $793 million decrease in revenue due to lower average selling prices and a $217 million decrease in sales volumes, including $112 million of lower production volume from the conversion of the Sagola mill to siding production.
Segment net sales and Adjusted EBITDA for this segment were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2024 2023 2024 - 2023 Net sales $ 1,184 $ 1,026 15 % Adjusted EBITDA 298 220 35 % Net sales in this segment by product line were as follows: Dollar amounts in millions Increase (decrease) Year Ended December 31, 2024 2023 2024 - 2023 OSB - Structural Solutions $ 650 $ 565 15 % OSB - Commodity 514 446 15 % Other 20 15 38 % Total $ 1,184 $ 1,026 Percent changes in average net sales prices and unit shipments were as follows: 2024 versus 2023 Average Selling Price Unit Shipments OSB - Structural Solutions 5 % 9 % OSB - Commodity 4 % 11 % For the twelve months ended December 31, 2024, the year-over-year increase in net sales of $159 million (or 15%), reflecting an increase in revenue due to 10% higher sales volumes and 4% higher OSB selling prices.
During the second quarter of 2023, we announced the shutdown of Entekra and recognized business exit charges of $32 million for the twelve months ended December 31, 2023. These charges consisted of severance costs, inventory obsolescence, impairment of property, plant, and equipment, impairment of right-of-use lease assets, and impairment of definite-lived intangible assets.
During the second quarter of 2023, we announced the shutdown of our off-site framing operation Entekra Holdings LLC (Entekra) and recognized business exit charges, net of $(32) million for the twelve months ended December 31, 2023.
During 2023, we paid $80 million to acquire an idle manufacturing facility in Wawa, Ontario, Canada. During 2022, we received $268 million in proceeds from sales of assets, primarily associated with the sale of the Engineered Wood Products (EWP) segment assets and the sale of our 50% equity interest in two joint ventures.
During 2024, we received $16 million in proceeds from our share of the sale of certain assets from an equity method investment. We also paid $17 million for an equity method investment in South America. During 2023, we paid $80 million to acquire an idle manufacturing facility in Wawa, Ontario, Canada.
Adjusted EBITDA decreased year-over-year by $814 million primarily due to the lower average selling prices. 39 LPSA Our LPSA segment manufactures and distributes LP OSB structural panel and Siding Solutions products in South America and certain export markets. This segment also sells and distributes a variety of companion products to support the region’s transition to wood frame construction.
Adjusted EBITDA for the twelve months ended December 31, 2024 increased year-over-year by $78 million, reflecting the impact of higher average selling prices and volumes. 39 LPSA The LPSA segment manufactures and distributes OSB structural panel and Siding Solutions products in South America and certain export markets.
The decrease in Adjusted EBITDA includes a $793 million decrease in OSB selling prices, a decrease in OSB sales volumes of $87 million, and a decline in Siding sales volumes, net of increases in average selling prices, of $43 million. Adjusted EBITDA is a non-GAAP financial measure.
This was partially offset by a $66 million increase in the provision for income taxes. The year-over-year increase in Adjusted EBITDA includes $143 million from higher Siding net sales, $55 million from higher OSB sales volumes, and $35 million due to higher OSB selling prices. Adjusted EBITDA is a non-GAAP financial measure.
General corporate and other expense, net, was $42 million in 2023 as compared to $47 million in 2022. This decrease was driven by a decrease in stock compensation expense.
General corporate and other expense, net, was $46 million in 2024, as compared to $42 million in 2023. This increase was driven by an increase in stock compensation expense. LOSS ON IMPAIRMENTS During 2024, we recorded $5 million of non-cash, pre-tax impairment charges related to property, plant, and equipment, at our Wawa facility.
For 2022, the primary difference between the U.S. statutory rate of 21% and the effective tax rate relates to state income tax. We paid $65 million and $320 million of income taxes net of refunds in 2023 and 2022, respectively.
See “Note 8 – Income Taxes” below for further discussion. We paid $124 million and $65 million of income taxes net of refunds in 2024 and 2023, respectively.
Removed
In May 2023, we acquired an idle manufacturing facility in Wawa, Ontario, Canada from a third party for $80 million. We anticipate converting the Wawa manufacturing facility into an LP SmartSide Trim & Siding mill in the future according to the needs of our business.
Added
Executive Summary Net sales for 2024 increased year-over-year by $360 million (or 14%) to $2.9 billion. Siding revenue increased by $230 million (or 17%) to $1.6 billion due to 11% higher volumes and 6% higher prices. OSB revenue increased by $159 million (or 15%) to $1.2 billion, due to 10% higher volumes and 4% higher prices.
Removed
We are evaluating project schedules and market demand to determine when we will begin related construction work. Executive Summary Net sales for 2023 decreased year-over-year by $1,273 million (or 33%) to $2,581 million. OSB revenue decreased $1,036 million due to 40% lower prices and 18% lower volumes.
Added
Net income increased year-over-year by $243 million (or 137%) to $420 million ($5.89 per diluted share). The increase primarily reflects a $210 million increase in Adjusted EBITDA, a $46 million improvement in business exit credits and charges, and the non-recurrence of OSB patent-related settlement claims of $16 million paid in 2023.
Removed
Siding revenue decreased $141 million (or 10%), due to 14% lower volumes, partially offset by 5% higher prices. The LPSA segment and Other revenues decreased year-over-year by $36 million and $61 million, respectively.
Added
We also disclose Adjusted Diluted EPS from continuing operations (Adjusted Diluted EPS), which is calculated as Adjusted Income divided by diluted shares outstanding.
Removed
Net income decreased year-over-year by $905 million (or 84%) to $178 million ($2.46 per diluted share) primarily due to a decrease in Adjusted EBITDA (defined below) of $911 million (or 66%) and a decrease in income from discontinued operations, net of income taxes of $198 million, partially offset by a $200 million decrease in the provision for income taxes.
Added
Approximately half of the 6% price improvement was the result of annual list price increases, and half due to favorable mix. ExpertFinish accounted for 9% of volume and 13% of sales in the twelve months ended December 31, 2024, respectively, contributing significantly to this favorable mix.
Removed
Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS have material limitations as performance measures because they exclude items that are actually incurred or experienced in connection with the operation of our business.
Added
For the twelve months ended December 31, 2024, the full year increase in Adjusted EBITDA of $121 million, primarily reflects the impact of the net sales increase, partially offset by ongoing investments in sales and marketing and maintenance costs.
Removed
During the year ended December 31, 2023, we updated our definitions of Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS to exclude other business exit charges not classified as discontinued operations. Business exit charges consist of inventory and other asset impairment and exit charges related to the exit of other businesses not individually significant.
Added
These 2023 charges consisted of severance costs, inventory obsolescence, impairment of property, plant, and equipment, impairment of right-of-use lease assets, and impairment of definite-lived intangible assets. During 2024, the equity method investment held by Entekra sold substantially all of its net assets.
Removed
We consider business exit charges to be outside the performance of our ongoing core business operations and believe that presenting Adjusted EBITDA, Adjusted Income, and Adjusted Diluted EPS excluding business exit charges provides increased transparency as to the operating costs of our current business performance.
Added
For the twelve months ended December 31, 2024, we recognized business exit credits, net of $14 million as a result of an $11 million gain on investment recorded within equity in unconsolidated affiliate on the Consolidated Statements of Income.
Removed
The year-over-year volume decreases in 2023 were driven by record results in the comparable period and challenging new and existing home sales markets in the current period.
Added
We paid cash dividends of $69 million and borrowed and subsequently repaid $80 million from our Amended Credit Facility during the year ended December 31, 2023.
Removed
Full year 2023 Adjusted EBITDA decreased year-over-year by $70 million, which reflects the net impact of lower volumes, a $10 million decrease in Siding mill capacity investments, a $10 million increase in operational support costs, and a $5 million press rebuild, partially offset by higher average selling prices.
Added
As of December 31, 2024, we were in compliance with all financial covenants under the Credit Agreement. In May 2024, LP entered into a new letter of credit facility agreement, replacing the letter of credit facility agreement dated May 2020.
Removed
Full year 2023 Adjusted EBITDA decreased year-over year by $36 million, reflecting the lower sales volumes and average selling prices, unfavorable foreign currency impacts of $6 million, and equipment relocation cost of $3 million.
Removed
During 2022, cash used in financing activities was $982 million. On November 2, 2021, LP's Board of Directors authorized a share repurchase plan under which LP may repurchase shares of its common stock totaling up to $500 million (the Second 2021 Share Repurchase Program).
Removed
In May 2022, LP's Board of Directors authorized a share repurchase plan under which LP was authorized to repurchase shares of its common stock totaling up to $600 million (the 2022 Share Repurchase Program).

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

2 edited+0 added−0 removed6 unchanged
Biggest changeWe historically have not entered into material commodity futures and swaps, although we may do so in the future. Interest Rate Risk We are exposed to market risk associated with changes in interest rates on our variable rate long-term debt. As of December 31, 2023, there were no outstanding borrowings under our Amended Credit Facility.
Biggest changeWe historically have not entered into material commodity futures and swaps, although we may do so in the future. Interest Rate Risk We could be exposed to market risk associated with changes in interest rates on our variable rate credit facility. As of December 31, 2024, there were no outstanding borrowings under our Amended Credit Facility.
We do not currently have any derivative or hedging arrangements, or other known exposures, to changes in interest rates. Based on our current amounts outstanding, a 100-basis point increase or decrease in market interest rates over a 12-month period would not result in a change to interest expense. 45
We do not currently have any derivative or hedging arrangements, or other known exposures, to changes in interest rates. Based on our current amounts outstanding, a 100-basis point increase or decrease in market interest rates over a 12-month period would not result in a change to interest expense. 44

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