v3.25.2
Revenue
 6 Months Ended
Jun. 30, 2025
Disaggregation of Revenue [Abstract]  
Revenue REVENUE
We disaggregate revenue from contracts with customers into major product lines. We have determined that disaggregating revenue into these categories depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.
As noted in the segment reporting information in “Note 15. Selected Segment Data” below, our reportable segments are Siding, Oriented Strand Board (OSB), and LP South America (LPSA). The following tables present our reportable segment revenues, disaggregated by revenue source (dollar amounts in millions):
Three Months Ended June 30, 2025
By product type and family:SidingOSBLPSAOtherTotal
Value-add
Siding Solutions$458 $— $5 $— $463 
OSB - Structural Solutions— 143 37 — 180 
458 143 42 — 643 
Commodity
OSB - commodity— 104 — — 104 
Other
Other products2 3 1 2 8 
$460 $250 $43 $2 $755 
Three Months Ended June 30, 2024
By product type and family:SidingOSBLPSAOtherTotal
Value-add
Siding Solutions$413 $— $4 $— $417 
OSB - Structural Solutions— 197 41 — 238 
413 197 45 — 655 
Commodity
OSB - commodity— 149 — — 149 
Other
Other products2 4 1 2 10 
$415 $351 $46 $2 $814 
Six Months Ended June 30, 2025
By product type and family:SidingOSBLPSAOtherTotal
Value-add
Siding Solutions$857 $— $13 $— $870 
OSB - Structural Solutions— 286 81 — 367 
857 286 94 — 1,237 
Commodity
OSB - commodity— 224 — — 224 
Other
Other products5 7 1 4 17 
$862 $517 $95 $4 $1,478 
Six Months Ended June 30, 2024
By product type and family:SidingOSBLPSAOtherTotal
Value-add
Siding Solutions$772 $— $11 $— $783 
OSB - Structural Solutions— 371 79 — 451 
772 371 90 — 1,234 
Commodity
OSB - commodity— 283 — — 283 
Other
Other products4 9 3 5 22 
$776 $664 $93 $5 $1,539 
Revenue is recognized when obligations under the terms of contracts (e.g., purchase orders) with our customers are satisfied; generally, this occurs with the transfer of control of our products at a point in time. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods. The shipping cost incurred by us to deliver products to our customers is recorded in cost of sales. The expected costs associated with our warranties continue to be recognized as an expense when the products are sold.
Our businesses routinely incur customer program costs to obtain favorable product placement, promote sales of products, and maintain competitive pricing. Customer program costs and incentives are accounted for as a reduction in net sales at the time the program is initiated and/or the revenue is recognized. The costs include, but are not
limited to, volume allowances and rebates, promotional allowances, and cooperative advertising programs. These costs are recorded at the later of (i) the time of sale or (ii) the implementation of the program based on management’s best estimates. Estimates are based on historical and projected experience for each type of program or customer. Volume allowances are accrued based on our estimates of customer volume achievement and other factors incorporated into customer agreements, such as new product purchases, store sell-through, merchandising support, and customer training. Management adjusts accruals when circumstances indicate (typically as a result of a change in volume expectations).
We ship some of our products to customers’ distribution centers on a consignment basis. We retain title to our products stored at the distribution centers. As our products are removed from the distribution centers by retailers and shipped to retailers’ stores, title passes from us to the retailers. At that time, we invoice the retailers and recognize revenue for these consignment transactions. We do not offer a right of return for products shipped to the retailers’ stores from the distribution centers.