|
|
|
|
|
DELAWARE
|
|
93-0609074
|
(State or other jurisdiction of
incorporation or organization)
|
|
(IRS Employer
Identification No.)
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|
Large accelerated filer
|
x
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
Smaller reporting company
|
o
|
Emerging growth company
|
o
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|
•
|
changes in governmental fiscal and monetary policies and levels of employment;
|
•
|
changes in general economic conditions;
|
•
|
changes in the cost and availability of capital;
|
•
|
changes in the level of home construction and repair activity;
|
•
|
changes in competitive conditions and prices for our products;
|
•
|
changes in the relationship between supply of and demand for building products;
|
•
|
changes in the relationship between supply of and demand for raw materials, including wood fiber and resins, used in manufacturing our products;
|
•
|
changes in the cost of and availability of energy, primarily natural gas, electricity and diesel fuel;
|
•
|
changes in the cost of and availability of transportation;
|
•
|
changes in other significant operating expenses;
|
•
|
changes in exchange rates between the U.S. dollar and other currencies, particularly the Canadian dollar, Brazilian
real
and Chilean
peso
;
|
•
|
changes in general and industry-specific environmental laws and regulations;
|
•
|
changes in tax laws, and interpretations thereof;
|
•
|
changes in circumstances giving rise to environmental liabilities or expenditures;
|
•
|
the resolution of existing and future product-related litigation and other legal proceedings; and
|
•
|
acts of public authorities, war, civil unrest, natural disasters, fire, floods, earthquakes, inclement weather and other matters beyond our control.
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Item 1.
|
Financial Statements.
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,000.9
|
|
|
$
|
928.0
|
|
Receivables, net of allowance for doubtful accounts of $0.9 million at June 30, 2018 and December 31, 2017
|
162.3
|
|
|
142.5
|
|
||
Inventories
|
286.4
|
|
|
259.1
|
|
||
Prepaid expenses and other current assets
|
13.0
|
|
|
7.8
|
|
||
Current portion of notes receivable from asset sales
|
—
|
|
|
22.2
|
|
||
Total current assets
|
1,462.6
|
|
|
1,359.6
|
|
||
Timber and timberlands
|
56.0
|
|
|
55.7
|
|
||
Property, plant and equipment, net
|
946.6
|
|
|
926.1
|
|
||
Goodwill and other intangible assets
|
26.4
|
|
|
26.7
|
|
||
Investments in and advances to affiliates
|
53.9
|
|
|
7.8
|
|
||
Restricted cash
|
13.3
|
|
|
13.3
|
|
||
Other assets
|
59.5
|
|
|
56.8
|
|
||
Deferred tax asset
|
2.5
|
|
|
2.5
|
|
||
Total assets
|
$
|
2,620.8
|
|
|
$
|
2,448.5
|
|
LIABILITIES AND EQUITY
|
|
|
|
||||
Current portion of long-term debt
|
$
|
27.3
|
|
|
$
|
25.1
|
|
Accounts payable and accrued liabilities
|
211.1
|
|
|
237.1
|
|
||
Income taxes payable
|
15.7
|
|
|
4.5
|
|
||
Current portion of contingency reserves
|
3.4
|
|
|
3.4
|
|
||
Total current liabilities
|
257.5
|
|
|
270.1
|
|
||
Long-term debt, excluding current portion
|
348.4
|
|
|
350.8
|
|
||
Deferred income taxes
|
58.9
|
|
|
33.4
|
|
||
Contingency reserves, excluding current portion
|
9.4
|
|
|
11.7
|
|
||
Other long-term liabilities
|
180.8
|
|
|
178.0
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Common stock, $1 par value, 200,000,000 shares authorized, 153,358,542 shares issued
|
153.4
|
|
|
153.4
|
|
||
Additional paid-in capital
|
457.5
|
|
|
470.6
|
|
||
Retained earnings
|
1,508.4
|
|
|
1,280.1
|
|
||
Treasury stock, 9,423,230 shares and 8,462,949 shares, at cost
|
(206.2
|
)
|
|
(177.5
|
)
|
||
Accumulated comprehensive loss
|
(147.3
|
)
|
|
(122.1
|
)
|
||
Total stockholders’ equity
|
1,765.8
|
|
|
1,604.5
|
|
||
Total liabilities and stockholders’ equity
|
$
|
2,620.8
|
|
|
$
|
2,448.5
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales
|
$
|
810.8
|
|
|
$
|
694.1
|
|
|
$
|
1,502.1
|
|
|
$
|
1,305.0
|
|
Cost of sales
|
550.2
|
|
|
511.8
|
|
|
1,064.7
|
|
|
994.6
|
|
||||
Gross profit
|
260.6
|
|
|
182.3
|
|
|
437.4
|
|
|
310.4
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
50.1
|
|
|
47.2
|
|
|
100.7
|
|
|
95.9
|
|
||||
Gain on sale or impairment of long lived assets, net
|
—
|
|
|
(3.1
|
)
|
|
(0.6
|
)
|
|
(2.5
|
)
|
||||
Other operating credits and charges, net
|
(4.5
|
)
|
|
2.0
|
|
|
(4.9
|
)
|
|
5.4
|
|
||||
Income from operations
|
215.0
|
|
|
136.2
|
|
|
342.2
|
|
|
211.6
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Non-operating income (expense):
|
|
|
|
|
|
|
|
||||||||
Interest expense, net of capitalized interest
|
(4.4
|
)
|
|
(4.9
|
)
|
|
(8.8
|
)
|
|
(9.9
|
)
|
||||
Investment income
|
4.8
|
|
|
2.3
|
|
|
8.0
|
|
|
4.3
|
|
||||
Other non-operating items
|
(0.7
|
)
|
|
(3.1
|
)
|
|
(2.1
|
)
|
|
(5.0
|
)
|
||||
Total non-operating income (expense)
|
(0.3
|
)
|
|
(5.7
|
)
|
|
(2.9
|
)
|
|
(10.6
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations before taxes and equity in loss of unconsolidated affiliate
|
214.7
|
|
|
130.5
|
|
|
339.3
|
|
|
201.0
|
|
||||
Provision for income taxes
|
51.2
|
|
|
36.0
|
|
|
80.9
|
|
|
51.5
|
|
||||
Equity in loss of unconsolidated affiliate
|
0.6
|
|
|
—
|
|
|
0.6
|
|
|
—
|
|
||||
Income from continuing operations
|
162.9
|
|
|
94.5
|
|
|
257.8
|
|
|
149.5
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Loss from discontinued operations before taxes
|
(0.3
|
)
|
|
—
|
|
|
(5.6
|
)
|
|
—
|
|
||||
Benefit for income taxes
|
(0.1
|
)
|
|
—
|
|
|
(1.4
|
)
|
|
—
|
|
||||
Loss from discontinued operations
|
(0.2
|
)
|
|
—
|
|
|
(4.2
|
)
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
162.7
|
|
|
$
|
94.5
|
|
|
$
|
253.6
|
|
|
$
|
149.5
|
|
|
|
|
|
|
|
|
|
||||||||
Net income per share of common stock:
|
|
|
|
|
|
|
|
||||||||
Income per share continuing operations
|
$
|
1.13
|
|
|
$
|
0.65
|
|
|
$
|
1.78
|
|
|
$
|
1.04
|
|
Loss per share discontinued operations
|
—
|
|
|
—
|
|
|
(0.03
|
)
|
|
—
|
|
||||
Net income per share - basic
|
$
|
1.13
|
|
|
$
|
0.65
|
|
|
$
|
1.75
|
|
|
$
|
1.04
|
|
Diluted net income per share of common stock:
|
|
|
|
|
|
|
|
||||||||
Income per share continuing operations
|
$
|
1.11
|
|
|
$
|
0.65
|
|
|
$
|
1.76
|
|
|
$
|
1.02
|
|
Loss per share discontinued operations
|
—
|
|
|
—
|
|
|
$
|
(0.03
|
)
|
|
—
|
|
|||
Net income per share - diluted
|
$
|
1.11
|
|
|
$
|
0.65
|
|
|
$
|
1.73
|
|
|
$
|
1.02
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares of stock outstanding - basic
|
144.6
|
|
|
144.5
|
|
|
144.7
|
|
|
144.3
|
|
||||
Weighted average shares of stock outstanding - diluted
|
146.2
|
|
|
146.2
|
|
|
146.4
|
|
|
146.0
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
$
|
162.7
|
|
|
$
|
94.5
|
|
|
$
|
253.6
|
|
|
$
|
149.5
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
(13.8
|
)
|
|
(8.5
|
)
|
|
(11.5
|
)
|
|
(5.7
|
)
|
||||
Unrealized gain (loss) on investments, net of tax
|
(0.1
|
)
|
|
0.1
|
|
|
0.1
|
|
|
0.4
|
|
||||
Defined benefit pension plans:
|
|
|
|
|
|
|
|
||||||||
Change in benefit obligations, translation adjustment
|
0.1
|
|
|
(0.2
|
)
|
|
0.3
|
|
|
(0.4
|
)
|
||||
Amortization of amounts included in net periodic benefit cost:
|
|
|
|
|
|
|
|
||||||||
Actuarial loss, net of tax
|
1.2
|
|
|
0.8
|
|
|
2.3
|
|
|
1.7
|
|
||||
Prior service cost, net of tax
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
0.4
|
|
||||
Other
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
||||
Other comprehensive loss
|
(12.4
|
)
|
|
(7.6
|
)
|
|
(8.5
|
)
|
|
(3.6
|
)
|
||||
Comprehensive income
|
$
|
150.3
|
|
|
$
|
86.9
|
|
|
$
|
245.1
|
|
|
$
|
145.9
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
162.7
|
|
|
$
|
94.5
|
|
|
$
|
253.6
|
|
|
$
|
149.5
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
|
|
||||||||
Depreciation and amortization
|
30.1
|
|
|
29.6
|
|
|
61.1
|
|
|
60.2
|
|
||||
Equity in (income) loss of unconsolidated affiliates, including dividends
|
(0.3
|
)
|
|
(0.4
|
)
|
|
(1.1
|
)
|
|
(1.0
|
)
|
||||
Gain on sale or impairment of long-lived assets, net
|
—
|
|
|
(3.1
|
)
|
|
(0.6
|
)
|
|
(2.5
|
)
|
||||
Other operating credits and charges, net
|
(0.3
|
)
|
|
2.0
|
|
|
(0.7
|
)
|
|
5.4
|
|
||||
Stock-based compensation related to stock plans
|
2.6
|
|
|
1.9
|
|
|
4.8
|
|
|
6.0
|
|
||||
Exchange loss on remeasurement
|
0.1
|
|
|
1.5
|
|
|
—
|
|
|
1.7
|
|
||||
Cash settlements of warranties, net of accruals
|
(0.6
|
)
|
|
(2.4
|
)
|
|
(1.5
|
)
|
|
(5.6
|
)
|
||||
Cash settlements of contingencies, net of accruals
|
(5.3
|
)
|
|
(0.3
|
)
|
|
(1.5
|
)
|
|
(0.3
|
)
|
||||
Pension contributions, net of expense
|
(2.1
|
)
|
|
(2.1
|
)
|
|
(0.5
|
)
|
|
(0.7
|
)
|
||||
Other adjustments, net
|
(1.2
|
)
|
|
(0.2
|
)
|
|
0.7
|
|
|
0.2
|
|
||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
||||||||
Increase in receivables
|
(16.2
|
)
|
|
(5.1
|
)
|
|
(45.4
|
)
|
|
(44.8
|
)
|
||||
(Increase) decrease in inventories
|
40.6
|
|
|
37.8
|
|
|
(13.4
|
)
|
|
13.0
|
|
||||
Increase in prepaid expenses
|
(4.0
|
)
|
|
(2.7
|
)
|
|
(5.2
|
)
|
|
(3.3
|
)
|
||||
Increase (decrease) in accounts payable and accrued liabilities
|
18.5
|
|
|
14.6
|
|
|
(19.5
|
)
|
|
(5.3
|
)
|
||||
Increase (decrease) in income taxes
|
12.7
|
|
|
(24.8
|
)
|
|
37.2
|
|
|
(10.9
|
)
|
||||
Net cash provided by operating activities
|
237.3
|
|
|
140.8
|
|
|
268.0
|
|
|
161.6
|
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Property, plant and equipment additions
|
(44.4
|
)
|
|
(19.6
|
)
|
|
(87.6
|
)
|
|
(45.7
|
)
|
||||
Proceeds from sales of assets
|
0.1
|
|
|
3.2
|
|
|
0.9
|
|
|
3.2
|
|
||||
Investments in unconsolidated affiliate
|
(45.0
|
)
|
|
—
|
|
|
(45.0
|
)
|
|
—
|
|
||||
Payment of long-term deposit
|
—
|
|
|
(32.0
|
)
|
|
—
|
|
|
(32.0
|
)
|
||||
Receipt of proceeds from notes receivable from asset sales
|
22.2
|
|
|
—
|
|
|
22.2
|
|
|
—
|
|
||||
Other investing activities
|
(0.1
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
0.2
|
|
||||
Net cash used in investing activities
|
(67.2
|
)
|
|
(48.4
|
)
|
|
(109.8
|
)
|
|
(74.3
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
||||||||
Repayment of long-term debt
|
(0.2
|
)
|
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(1.3
|
)
|
||||
Payment of cash dividends
|
(18.7
|
)
|
|
—
|
|
|
(37.6
|
)
|
|
—
|
|
||||
Purchase of treasury stock
|
(38.9
|
)
|
|
—
|
|
|
(38.9
|
)
|
|
—
|
|
||||
Sale of common stock, net of cash payments under equity plans
|
—
|
|
|
(0.8
|
)
|
|
0.1
|
|
|
(0.4
|
)
|
||||
Taxes paid related to net share settlement of equity awards
|
(2.1
|
)
|
|
(0.1
|
)
|
|
(7.8
|
)
|
|
(4.8
|
)
|
||||
Other financing activities
|
—
|
|
|
—
|
|
|
3.1
|
|
|
—
|
|
||||
Net cash used in financing activities
|
(59.9
|
)
|
|
(1.0
|
)
|
|
(81.4
|
)
|
|
(6.5
|
)
|
||||
EFFECT OF EXCHANGE RATE ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
(5.1
|
)
|
|
(0.8
|
)
|
|
(3.9
|
)
|
|
(0.1
|
)
|
||||
Net increase in cash, cash equivalents and restricted cash
|
105.1
|
|
|
90.6
|
|
|
72.9
|
|
|
80.7
|
|
||||
Cash, cash equivalents and restricted cash at beginning of period
|
909.1
|
|
|
662.6
|
|
|
941.3
|
|
|
672.5
|
|
||||
Cash, cash equivalents and restricted cash at end of period
|
$
|
1,014.2
|
|
|
$
|
753.2
|
|
|
$
|
1,014.2
|
|
|
$
|
753.2
|
|
|
Common Stock
|
|
Treasury Stock
|
|
Additional
Paid-in
Capital
|
|
Retained
Earnings
|
|
Accumulated
Comprehensive
Loss
|
|
Total
Stockholders'
Equity
|
||||||||||||||||||
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|||||||||||||||||||||
Balance, December 31, 2017
|
153.4
|
|
|
$
|
153.4
|
|
|
8.4
|
|
|
$
|
(177.5
|
)
|
|
$
|
470.6
|
|
|
$
|
1,280.1
|
|
|
$
|
(122.1
|
)
|
|
$
|
1,604.5
|
|
Effect of adoption of ASU 2014-09
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(4.4
|
)
|
|
|
|
|
(4.4
|
)
|
||||||
Effect of adoption of ASU 2018-02
1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16.7
|
|
|
(16.7
|
)
|
|
—
|
|
||||||
Net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
253.6
|
|
|
|
|
|
253.6
|
|
||||||
Dividends paid
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(37.6
|
)
|
|
|
|
|
(37.6
|
)
|
||||||
Issuance of shares for stock plans and stock-based compensation
|
|
|
|
|
|
|
(0.8
|
)
|
|
18.0
|
|
|
(17.9
|
)
|
|
|
|
|
|
|
|
0.1
|
|
||||||
Purchase of treasury stock
|
|
|
|
|
|
|
1.4
|
|
|
(38.9
|
)
|
|
|
|
|
|
|
|
|
|
(38.9
|
)
|
|||||||
Compensation expense associated with stock-based compensation
|
|
|
|
|
|
|
|
|
|
|
|
|
4.8
|
|
|
|
|
|
|
|
4.8
|
|
|||||||
Taxes paid related to net settlement of stock-based awards
|
|
|
|
|
|
|
0.4
|
|
|
(7.8
|
)
|
|
|
|
|
|
|
|
|
|
(7.8
|
)
|
|||||||
Other comprehensive loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8.5
|
)
|
|
(8.5
|
)
|
||||||
Balance, June 30, 2018
|
153.4
|
|
|
$
|
153.4
|
|
|
9.4
|
|
|
$
|
(206.2
|
)
|
|
$
|
457.5
|
|
|
$
|
1,508.4
|
|
|
$
|
(147.3
|
)
|
|
$
|
1,765.8
|
|
Dollar amounts in millions
|
Balance at December 31, 2017
|
|
ASU 2014-09
|
|
ASU 2018-02
|
|
Balance at January 1, 2018
|
||||||||
Receivables, net of allowance for doubtful accounts
|
$
|
142.5
|
|
|
$
|
(21.7
|
)
|
|
$
|
—
|
|
|
$
|
120.8
|
|
Inventories
|
259.1
|
|
|
15.8
|
|
|
—
|
|
|
274.9
|
|
||||
Deferred tax asset
|
2.5
|
|
|
1.5
|
|
|
—
|
|
|
4.0
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Retained earnings
|
1,280.1
|
|
|
(4.4
|
)
|
|
16.7
|
|
|
1,292.4
|
|
||||
Accumulated comprehensive loss
|
(122.1
|
)
|
|
—
|
|
|
(16.7
|
)
|
|
(138.8
|
)
|
|
Quarter Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||||
Dollar amounts in millions
|
As reported
|
|
Balances without adoption of ASC 606
|
|
Effect of Change Higher (Lower)
|
|
As reported
|
|
Balances without adoption of ASC 606
|
|
Effect of Change Higher (Lower)
|
||||||||||||
Consolidated Statement of Income
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net sales
|
$
|
810.8
|
|
|
818.4
|
|
|
$
|
(7.6
|
)
|
|
$
|
1,502.1
|
|
|
$
|
1,520.8
|
|
|
$
|
(18.7
|
)
|
|
Cost of sales
|
550.2
|
|
|
554.0
|
|
|
(3.8
|
)
|
|
1,064.7
|
|
|
1,075.0
|
|
|
(10.3
|
)
|
||||||
Selling, general and administrative expenses
|
50.1
|
|
|
51.2
|
|
|
(1.1
|
)
|
|
100.7
|
|
|
102.6
|
|
|
(1.9
|
)
|
||||||
Provision for income taxes
|
51.2
|
|
|
51.9
|
|
|
(0.7
|
)
|
|
80.9
|
|
|
82.5
|
|
|
(1.6
|
)
|
||||||
Net income
|
162.7
|
|
|
164.7
|
|
|
(2.0
|
)
|
|
253.6
|
|
|
258.5
|
|
|
(4.9
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Consolidated Balance Sheet
|
June 30, 2018
|
|
|
|
|
|
|
||||||||||||||||
Receivables, net of allowance for doubtful accounts
|
$
|
162.3
|
|
|
$
|
200.8
|
|
|
$
|
38.5
|
|
|
|
|
|
|
|
||||||
Inventory
|
$
|
286.4
|
|
|
$
|
260.3
|
|
|
$
|
(26.1
|
)
|
|
|
|
|
|
|
||||||
Income taxes payable
|
$
|
15.7
|
|
|
$
|
18.8
|
|
|
$
|
3.1
|
|
|
|
|
|
|
|
||||||
Retained earnings
|
$
|
1,508.4
|
|
|
$
|
1,517.7
|
|
|
$
|
9.3
|
|
|
|
|
|
|
|
|
Quarter Ended June 30, 2017
|
||||||||||||||
Dollar amounts in millions
|
As reported
|
|
ASU 2017-07
|
|
Reclassi- fications
|
|
As adjusted
|
||||||||
Consolidated Statement of Income
|
|
|
|
|
|
|
|
||||||||
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
$
|
484.0
|
|
|
$
|
(1.0
|
)
|
|
$
|
28.8
|
|
|
$
|
511.8
|
|
Depreciation and amortization
|
29.6
|
|
|
—
|
|
|
(29.6
|
)
|
|
—
|
|
||||
Selling, general and administrative expenses
|
47.0
|
|
|
(0.6
|
)
|
|
0.8
|
|
|
47.2
|
|
||||
Income from operations
|
134.6
|
|
|
1.6
|
|
|
—
|
|
|
136.2
|
|
||||
Total non-operating income (expense)
|
(4.1
|
)
|
|
(1.6
|
)
|
|
—
|
|
|
(5.7
|
)
|
|
Six Months Ended June 30, 2017
|
|||||||||||||
Dollar amounts in millions
|
As reported
|
|
ASU 2017-07
|
|
Reclassi- fications
|
|
As adjusted
|
|||||||
Consolidated Statement of Income
|
|
|
|
|
|
|
|
|||||||
Cost of sales (exclusive of depreciation and amortization shown separately below)
|
$
|
937.9
|
|
|
$
|
(2.0
|
)
|
|
58.7
|
|
|
$
|
994.6
|
|
Depreciation and amortization
|
60.2
|
|
|
—
|
|
|
(60.2
|
)
|
|
—
|
|
|||
Selling, general and administrative expenses
|
95.6
|
|
|
(1.2
|
)
|
|
1.5
|
|
|
95.9
|
|
|||
Income from operations
|
208.4
|
|
|
3.2
|
|
|
—
|
|
|
211.6
|
|
|||
Total non-operating income (expense)
|
(7.4
|
)
|
|
(3.2
|
)
|
|
—
|
|
|
(10.6
|
)
|
|
Quarter Ended June 30, 2017
|
||||||||||
Dollar amounts in millions
|
As reported
|
|
ASU 2016-18
|
|
As adjusted
|
||||||
Consolidated Statement of Cash Flows
|
|
|
|
|
|
||||||
Net cash provided by (used in) investing activities
|
$
|
(48.5
|
)
|
|
$
|
0.1
|
|
|
$
|
(48.4
|
)
|
Effect of exchange rate on cash, cash equivalents and restricted cash
|
(0.8
|
)
|
|
—
|
|
|
(0.8
|
)
|
|||
Net increase in cash, cash equivalents and restricted cash
|
90.5
|
|
|
0.1
|
|
|
90.6
|
|
|||
Cash, cash equivalents and restricted cash at beginning of period
|
649.5
|
|
|
13.1
|
|
|
662.6
|
|
|||
Cash, cash equivalents and restricted cash at end of period
|
740.0
|
|
|
13.2
|
|
|
753.2
|
|
|
Six Months Ended June 30, 2017
|
||||||||||
Dollar amounts in millions
|
As reported
|
|
ASU 2016-18
|
|
As adjusted
|
||||||
Consolidated Statement of Cash Flows
|
|
|
|
|
|
||||||
Net cash provided by (used in) investing activities
|
$
|
(74.5
|
)
|
|
$
|
0.2
|
|
|
$
|
(74.3
|
)
|
Effect of exchange rate on cash, cash equivalents and restricted cash
|
0.1
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
|||
Net increase in cash, cash equivalents and restricted cash
|
80.7
|
|
|
—
|
|
|
80.7
|
|
|||
Cash, cash equivalents and restricted cash at beginning of period
|
659.3
|
|
|
13.2
|
|
|
672.5
|
|
|||
Cash, cash equivalents and restricted cash at end of period
|
740.0
|
|
|
13.2
|
|
|
753.2
|
|
Quarter Ended June 30, 2018
|
|||||||||||||||||||||||||||
By Product family:
|
Siding
|
|
OSB
|
|
EWP
|
|
South America
|
|
Other
|
|
Inter-segment
|
|
Total
|
||||||||||||||
SmartSide
®
Strand siding
|
$
|
193.5
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
200.4
|
|
SmartSide
®
Fiber siding
|
27.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
27.9
|
|
|||||||
CanExel
®
siding
|
12.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.5
|
|
|||||||
OSB - commodity
|
12.4
|
|
|
231.4
|
|
|
5.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
249.0
|
|
|||||||
OSB - value-add
|
12.4
|
|
|
154.9
|
|
|
3.8
|
|
|
37.2
|
|
|
—
|
|
|
—
|
|
|
208.3
|
|
|||||||
LVL
|
—
|
|
|
—
|
|
|
40.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
40.4
|
|
|||||||
LSL
|
—
|
|
|
—
|
|
|
17.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
17.4
|
|
|||||||
I-joist
|
—
|
|
|
—
|
|
|
31.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31.5
|
|
|||||||
Plywood
|
—
|
|
|
—
|
|
|
8.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.0
|
|
|||||||
Other
|
2.9
|
|
|
1.1
|
|
|
2.8
|
|
|
1.2
|
|
|
7.4
|
|
|
—
|
|
|
15.4
|
|
|||||||
|
$
|
261.6
|
|
|
$
|
387.4
|
|
|
$
|
109.1
|
|
|
$
|
45.3
|
|
|
$
|
7.4
|
|
|
$
|
—
|
|
|
$
|
810.8
|
|
By Product type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commodity
|
$
|
12.4
|
|
|
$
|
231.4
|
|
|
$
|
13.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
257.0
|
|
Value-add
|
246.3
|
|
|
154.9
|
|
|
93.1
|
|
|
44.1
|
|
|
—
|
|
|
—
|
|
|
538.4
|
|
|||||||
Other
|
2.9
|
|
|
1.1
|
|
|
2.8
|
|
|
1.2
|
|
|
7.4
|
|
|
—
|
|
|
15.4
|
|
|||||||
|
$
|
261.6
|
|
|
$
|
387.4
|
|
|
$
|
109.1
|
|
|
$
|
45.3
|
|
|
$
|
7.4
|
|
|
$
|
—
|
|
|
$
|
810.8
|
|
Six Months Ended June 30, 2018
|
|||||||||||||||||||||||||||
By Product family:
|
Siding
|
|
OSB
|
|
EWP
|
|
South America
|
|
Other
|
|
Inter-segment
|
|
Total
|
||||||||||||||
SmartSide
®
Strand siding
|
$
|
358.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
13.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
372.3
|
|
SmartSide
®
Fiber siding
|
53.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53.8
|
|
|||||||
CanExel
®
siding
|
26.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26.4
|
|
|||||||
OSB - commodity
|
21.1
|
|
|
412.5
|
|
|
8.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
441.6
|
|
|||||||
OSB - value-add
|
21.6
|
|
|
284.0
|
|
|
7.9
|
|
|
72.1
|
|
|
—
|
|
|
—
|
|
|
385.6
|
|
|||||||
LVL
|
—
|
|
|
—
|
|
|
77.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77.0
|
|
|||||||
LSL
|
—
|
|
|
—
|
|
|
30.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.7
|
|
|||||||
I-joist
|
—
|
|
|
—
|
|
|
63.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
63.6
|
|
|||||||
Plywood
|
—
|
|
|
—
|
|
|
15.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.6
|
|
|||||||
Other
|
7.1
|
|
|
4.2
|
|
|
7.0
|
|
|
1.9
|
|
|
15.3
|
|
|
—
|
|
|
35.5
|
|
|||||||
|
$
|
488.6
|
|
|
$
|
700.7
|
|
|
$
|
209.8
|
|
|
$
|
87.7
|
|
|
$
|
15.3
|
|
|
$
|
—
|
|
|
$
|
1,502.1
|
|
By Product type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commodity
|
$
|
21.1
|
|
|
$
|
412.5
|
|
|
$
|
23.6
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
457.2
|
|
Value-add
|
460.4
|
|
|
284.0
|
|
|
179.2
|
|
|
85.8
|
|
|
—
|
|
|
—
|
|
|
1,009.4
|
|
|||||||
Other
|
7.1
|
|
|
4.2
|
|
|
7.0
|
|
|
1.9
|
|
|
15.3
|
|
|
—
|
|
|
35.5
|
|
|||||||
|
$
|
488.6
|
|
|
$
|
700.7
|
|
|
$
|
209.8
|
|
|
$
|
87.7
|
|
|
$
|
15.3
|
|
|
$
|
—
|
|
|
$
|
1,502.1
|
|
Quarter Ended June 30, 2017
|
|||||||||||||||||||||||||||
By Product family:
|
Siding
|
|
OSB
|
|
EWP
|
|
South America
|
|
Other
|
|
Inter-segment
|
|
Total
|
||||||||||||||
SmartSide
®
Strand siding
|
$
|
164.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4.6
|
|
|
$
|
—
|
|
|
$
|
(1.8
|
)
|
|
$
|
167.1
|
|
SmartSide
®
Fiber siding
|
29.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
29.3
|
|
|||||||
CanExel
®
siding
|
14.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14.2
|
|
|||||||
OSB - commodity
|
21.0
|
|
|
190.7
|
|
|
4.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
215.7
|
|
|||||||
OSB - value-add
|
—
|
|
|
132.1
|
|
|
3.6
|
|
|
33.2
|
|
|
—
|
|
|
—
|
|
|
168.9
|
|
|||||||
LVL
|
—
|
|
|
—
|
|
|
37.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37.2
|
|
|||||||
LSL
|
—
|
|
|
—
|
|
|
12.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12.0
|
|
|||||||
I-joist
|
—
|
|
|
—
|
|
|
30.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
30.4
|
|
|||||||
Plywood
|
—
|
|
|
—
|
|
|
5.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.8
|
|
|||||||
Other
|
2.2
|
|
|
2.2
|
|
|
1.2
|
|
|
0.9
|
|
|
7.1
|
|
|
(0.1
|
)
|
|
13.5
|
|
|||||||
|
$
|
231.0
|
|
|
$
|
325.0
|
|
|
$
|
94.2
|
|
|
$
|
38.7
|
|
|
$
|
7.1
|
|
|
$
|
(1.9
|
)
|
|
$
|
694.1
|
|
By Product type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commodity
|
$
|
21.0
|
|
|
$
|
190.7
|
|
|
$
|
9.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
221.5
|
|
Value-add
|
207.8
|
|
|
132.1
|
|
|
83.2
|
|
|
37.8
|
|
|
—
|
|
|
(1.8
|
)
|
|
459.1
|
|
|||||||
Other
|
2.2
|
|
|
2.2
|
|
|
1.2
|
|
|
0.9
|
|
|
7.1
|
|
|
(0.1
|
)
|
|
13.5
|
|
|||||||
|
$
|
231.0
|
|
|
$
|
325.0
|
|
|
$
|
94.2
|
|
|
$
|
38.7
|
|
|
$
|
7.1
|
|
|
$
|
(1.9
|
)
|
|
$
|
694.1
|
|
Six Months Ended June 30, 2017
|
|||||||||||||||||||||||||||
By Product family:
|
Siding
|
|
OSB
|
|
EWP
|
|
South America
|
|
Other
|
|
Inter-segment
|
|
Total
|
||||||||||||||
SmartSide
®
Strand siding
|
$
|
320.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.8
|
|
|
$
|
—
|
|
|
$
|
(1.8
|
)
|
|
$
|
329.4
|
|
SmartSide
®
Fiber siding
|
58.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
58.0
|
|
|||||||
CanExel
®
siding
|
28.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28.5
|
|
|||||||
OSB - commodity
|
33.4
|
|
|
342.0
|
|
|
5.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
380.5
|
|
|||||||
OSB - value-add
|
—
|
|
|
245.2
|
|
|
6.5
|
|
|
63.8
|
|
|
—
|
|
|
—
|
|
|
315.5
|
|
|||||||
LVL
|
—
|
|
|
—
|
|
|
70.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
70.2
|
|
|||||||
LSL
|
—
|
|
|
—
|
|
|
22.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
22.6
|
|
|||||||
I-joist
|
—
|
|
|
—
|
|
|
56.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56.1
|
|
|||||||
Plywood
|
—
|
|
|
—
|
|
|
10.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.6
|
|
|||||||
Other
|
4.7
|
|
|
6.2
|
|
|
5.2
|
|
|
1.9
|
|
|
15.8
|
|
|
(0.2
|
)
|
|
33.6
|
|
|||||||
|
$
|
445.0
|
|
|
$
|
593.4
|
|
|
$
|
176.3
|
|
|
$
|
76.5
|
|
|
$
|
15.8
|
|
|
$
|
(2.0
|
)
|
|
$
|
1,305.0
|
|
By Product type:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Commodity
|
$
|
33.4
|
|
|
$
|
342.0
|
|
|
$
|
15.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
391.1
|
|
Value-add
|
406.9
|
|
|
245.2
|
|
|
155.4
|
|
|
74.6
|
|
|
—
|
|
|
(1.8
|
)
|
|
880.3
|
|
|||||||
Other
|
4.7
|
|
|
6.2
|
|
|
5.2
|
|
|
1.9
|
|
|
15.8
|
|
|
(0.2
|
)
|
|
33.6
|
|
|||||||
|
$
|
445.0
|
|
|
$
|
593.4
|
|
|
$
|
176.3
|
|
|
$
|
76.5
|
|
|
$
|
15.8
|
|
|
$
|
(2.0
|
)
|
|
$
|
1,305.0
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Dollar amounts in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Total stock-based compensation expense (cost of sales, selling, general and administrative and other operating credits and charges, net)
|
$
|
2.6
|
|
|
$
|
1.9
|
|
|
$
|
4.8
|
|
|
$
|
6.0
|
|
Income tax provision related to stock-based compensation
|
$
|
(0.6
|
)
|
|
$
|
0.3
|
|
|
$
|
(2.8
|
)
|
|
$
|
0.3
|
|
Impact on cash flow due to taxes paid related to net share settlement of equity awards
|
$
|
2.1
|
|
|
$
|
0.1
|
|
|
$
|
7.8
|
|
|
$
|
4.8
|
|
Share amounts in millions
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
2018
|
|
2017
|
|
2018
|
|
2017
|
|||||
Denominator for basic earnings per share:
|
|
|
|
|
|
|
|
||||
Weighted average common shares outstanding - basic
|
144.6
|
|
|
144.5
|
|
|
144.7
|
|
|
144.3
|
|
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||
Dilutive effect of employee stock plans
|
1.6
|
|
|
1.7
|
|
|
1.7
|
|
|
1.7
|
|
Denominator for diluted earnings per share:
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding - diluted
|
146.2
|
|
|
146.2
|
|
|
146.4
|
|
|
146.0
|
|
Dollar amounts in millions
|
June 30, 2018
|
|
December 31, 2017
|
||||
Trade receivables
|
$
|
148.3
|
|
|
$
|
124.6
|
|
Income tax receivable
|
1.6
|
|
|
2.2
|
|
||
Other receivables
|
13.3
|
|
|
16.6
|
|
||
Allowance for doubtful accounts
|
(0.9
|
)
|
|
(0.9
|
)
|
||
Total
|
$
|
162.3
|
|
|
$
|
142.5
|
|
Dollar amounts in millions
|
June 30, 2018
|
|
December 31, 2017
|
||||
Logs
|
$
|
57.1
|
|
|
$
|
60.3
|
|
Other raw materials
|
25.2
|
|
|
20.8
|
|
||
Semi-finished inventory
|
23.4
|
|
|
24.3
|
|
||
Finished products
|
180.7
|
|
|
153.7
|
|
||
Total
|
$
|
286.4
|
|
|
$
|
259.1
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Dollar amounts in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Beginning balance
|
$
|
12.8
|
|
|
$
|
15.8
|
|
|
$
|
15.0
|
|
|
$
|
15.9
|
|
Adjusted to expense
|
—
|
|
|
0.1
|
|
|
(0.8
|
)
|
|
0.1
|
|
||||
Payments made
|
(0.3
|
)
|
|
(0.2
|
)
|
|
(1.7
|
)
|
|
(0.3
|
)
|
||||
Ending balance
|
$
|
12.5
|
|
|
$
|
15.7
|
|
|
$
|
12.5
|
|
|
$
|
15.7
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Dollar amounts in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales
|
|
|
|
|
|
|
|
||||||||
Siding
|
$
|
261.6
|
|
|
$
|
231.0
|
|
|
$
|
488.6
|
|
|
$
|
445.0
|
|
OSB
|
387.4
|
|
|
325.0
|
|
|
700.7
|
|
|
593.4
|
|
||||
EWP
|
109.1
|
|
|
94.2
|
|
|
209.8
|
|
|
176.3
|
|
||||
South America
|
45.3
|
|
|
38.7
|
|
|
87.7
|
|
|
76.5
|
|
||||
Other
|
7.4
|
|
|
7.1
|
|
|
15.3
|
|
|
15.8
|
|
||||
Intersegment sales
|
—
|
|
|
(1.9
|
)
|
|
—
|
|
|
(2.0
|
)
|
||||
|
$
|
810.8
|
|
|
$
|
694.1
|
|
|
$
|
1,502.1
|
|
|
$
|
1,305.0
|
|
Operating profit (loss):
|
|
|
|
|
|
|
|
||||||||
Siding
|
$
|
62.7
|
|
|
$
|
49.0
|
|
|
$
|
108.0
|
|
|
$
|
89.7
|
|
OSB
|
157.4
|
|
|
103.0
|
|
|
254.8
|
|
|
163.8
|
|
||||
EWP
|
8.6
|
|
|
5.3
|
|
|
11.4
|
|
|
6.1
|
|
||||
South America
|
9.6
|
|
|
5.5
|
|
|
18.5
|
|
|
10.6
|
|
||||
Other
|
(0.8
|
)
|
|
(0.9
|
)
|
|
(1.7
|
)
|
|
(1.1
|
)
|
||||
Other operating credits and charges, net
|
4.5
|
|
|
(2.0
|
)
|
|
4.9
|
|
|
(5.4
|
)
|
||||
Gain on sale or impairment of long-lived assets, net
|
—
|
|
|
3.1
|
|
|
0.6
|
|
|
2.5
|
|
||||
General corporate and other expenses, net
|
(27.6
|
)
|
|
(26.8
|
)
|
|
(54.9
|
)
|
|
(54.6
|
)
|
||||
Interest expense, net of capitalized interest
|
(4.4
|
)
|
|
(4.9
|
)
|
|
(8.8
|
)
|
|
(9.9
|
)
|
||||
Investment income
|
4.8
|
|
|
2.3
|
|
|
8.0
|
|
|
4.3
|
|
||||
Other non-operating items
|
(0.7
|
)
|
|
(3.1
|
)
|
|
(2.1
|
)
|
|
(5.0
|
)
|
||||
Income from continuing operations before taxes
|
214.1
|
|
|
130.5
|
|
|
338.7
|
|
|
201.0
|
|
||||
Provision for income taxes
|
51.2
|
|
|
36.0
|
|
|
80.9
|
|
|
51.5
|
|
||||
Income from continuing operations
|
$
|
162.9
|
|
|
$
|
94.5
|
|
|
$
|
257.8
|
|
|
$
|
149.5
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Dollar amounts in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Beginning balance
|
$
|
24.2
|
|
|
$
|
24.5
|
|
|
$
|
24.7
|
|
|
$
|
24.1
|
|
Accrued to expense
|
0.4
|
|
|
0.2
|
|
|
0.6
|
|
|
0.4
|
|
||||
Accrued to other operating credits and charges
|
—
|
|
|
2.0
|
|
|
—
|
|
|
5.4
|
|
||||
Foreign currency translation
|
(0.8
|
)
|
|
1.2
|
|
|
(0.4
|
)
|
|
1.4
|
|
||||
Payments made
|
(1.0
|
)
|
|
(2.6
|
)
|
|
(2.1
|
)
|
|
(6.0
|
)
|
||||
Total warranty reserves
|
22.8
|
|
|
25.3
|
|
|
22.8
|
|
|
25.3
|
|
||||
Current portion of warranty reserves
|
(4.0
|
)
|
|
(9.0
|
)
|
|
(4.0
|
)
|
|
(9.0
|
)
|
||||
Long-term portion of warranty reserves
|
$
|
18.8
|
|
|
$
|
16.3
|
|
|
$
|
18.8
|
|
|
$
|
16.3
|
|
|
|
|
|
Pension Adjustments
|
|
|
|
|
|
|
||||||||||||||
Dollar amounts in millions
|
|
Foreign currency translation adjustments
|
|
Actuarial losses
|
|
Prior service costs
|
|
Unrealized gain (loss) on investments
|
|
Other
|
|
Total
|
||||||||||||
Balance at March 31, 2018
|
|
$
|
(37.4
|
)
|
|
$
|
(95.6
|
)
|
|
$
|
(4.8
|
)
|
|
$
|
4.4
|
|
|
$
|
(1.5
|
)
|
|
$
|
(134.9
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(13.8
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(13.8
|
)
|
||||||
Income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Net other comprehensive income (loss) before reclassifications
|
|
(13.8
|
)
|
|
0.1
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(13.8
|
)
|
||||||
Amounts reclassified from accumulated comprehensive income (loss)
|
|
—
|
|
|
1.6
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
1.8
|
|
||||||
Income taxes
|
|
—
|
|
|
(0.4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.4
|
)
|
||||||
Net amounts reclassified from cumulative other comprehensive income (loss)
|
|
—
|
|
|
1.2
|
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
1.4
|
|
||||||
Total other comprehensive income (loss)
|
|
(13.8
|
)
|
|
1.3
|
|
|
0.1
|
|
|
(0.1
|
)
|
|
0.1
|
|
|
(12.4
|
)
|
||||||
Balance at June 30, 2018
|
|
$
|
(51.2
|
)
|
|
$
|
(94.3
|
)
|
|
$
|
(4.7
|
)
|
|
$
|
4.3
|
|
|
$
|
(1.4
|
)
|
|
$
|
(147.3
|
)
|
|
|
|
|
Pension Adjustments
|
|
|
|
|
|
|
||||||||||||||||||
Dollar amounts in millions
|
|
Foreign currency translation adjustments
|
|
Actuarial losses
|
|
Prior service costs
|
|
Unrealized gain (loss) on investments
|
|
Other
|
|
Total
|
||||||||||||||||
Balance at December 31, 2017
|
|
$
|
(39.7
|
)
|
|
$
|
(79.5
|
)
|
|
$
|
(4.9
|
)
|
|
$
|
3.5
|
|
|
$
|
(1.5
|
)
|
|
$
|
(122.1
|
)
|
||||
Effect of adoption of ASU 2018-02
|
|
—
|
|
|
(17.4
|
)
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
(16.7
|
)
|
||||||||||
Other comprehensive income (loss) before reclassifications
|
|
(11.5
|
)
|
—
|
|
0.3
|
|
—
|
|
—
|
|
—
|
|
0.1
|
|
—
|
|
—
|
|
|
(11.1
|
)
|
||||||
Income taxes
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
||||||
Net other comprehensive income (loss) before reclassifications
|
|
(11.5
|
)
|
|
0.3
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(11.1
|
)
|
||||||||||
Amounts reclassified from accumulated comprehensive income (loss)
|
|
—
|
|
|
3.1
|
|
|
0.2
|
|
|
—
|
|
|
0.1
|
|
|
3.4
|
|
||||||||||
Income taxes
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
||||||||||
Net amounts reclassified from cumulative other comprehensive income (loss)
|
|
—
|
|
|
2.3
|
|
|
0.2
|
|
|
—
|
|
|
0.1
|
|
|
2.6
|
|
||||||||||
Total other comprehensive income (loss)
|
|
(11.5
|
)
|
|
2.6
|
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
|
(8.5
|
)
|
||||||||||
Balance at June 30, 2018
|
|
$
|
(51.2
|
)
|
|
$
|
(94.3
|
)
|
|
$
|
(4.7
|
)
|
|
$
|
4.3
|
|
|
$
|
(1.4
|
)
|
|
$
|
(147.3
|
)
|
|
|
|
|
Pension Adjustments
|
|
|
|
|
|
|
||||||||||||||
Dollar amounts in millions
|
|
Foreign currency translation adjustments
|
|
Actuarial losses
|
|
Prior service costs
|
|
Unrealized gain (loss) on investments
|
|
Other
|
|
Total
|
||||||||||||
Balance at March 31, 2017
|
|
$
|
(43.5
|
)
|
|
$
|
(87.0
|
)
|
|
$
|
(5.0
|
)
|
|
$
|
3.0
|
|
|
$
|
(0.7
|
)
|
|
$
|
(133.2
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(8.5
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
0.2
|
|
|
—
|
|
|
(8.5
|
)
|
||||||
Income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.1
|
)
|
|
—
|
|
|
(0.1
|
)
|
||||||
Net other comprehensive income (loss) before reclassifications
|
|
(8.5
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
0.1
|
|
|
—
|
|
|
(8.6
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
|
—
|
|
|
1.4
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
1.7
|
|
||||||
Income taxes
|
|
—
|
|
|
(0.6
|
)
|
|
(0.1
|
)
|
|
—
|
|
|
—
|
|
|
(0.7
|
)
|
||||||
Net amounts reclassified from cumulative other comprehensive income (loss)
|
|
—
|
|
|
0.8
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
1.0
|
|
||||||
Total other comprehensive income (loss)
|
|
(8.5
|
)
|
|
0.6
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
(7.6
|
)
|
||||||
Balance at June 30, 2017
|
|
$
|
(52.0
|
)
|
|
$
|
(86.4
|
)
|
|
$
|
(4.8
|
)
|
|
$
|
3.1
|
|
|
$
|
(0.7
|
)
|
|
$
|
(140.8
|
)
|
|
|
|
|
Pension Adjustments
|
|
|
|
|
|
|
||||||||||||||
Dollar amounts in millions
|
|
Foreign currency translation adjustments
|
|
Actuarial losses
|
|
Prior service costs
|
|
Unrealized gain (loss) on investments
|
|
Other
|
|
Total
|
||||||||||||
Balance at December 31, 2016
|
|
$
|
(46.3
|
)
|
|
$
|
(87.7
|
)
|
|
$
|
(5.2
|
)
|
|
$
|
2.7
|
|
|
$
|
(0.7
|
)
|
|
$
|
(137.2
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(5.7
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
0.7
|
|
|
—
|
|
|
(5.4
|
)
|
||||||
Income taxes
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
||||||
Net other comprehensive income (loss) before reclassifications
|
|
(5.7
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
(5.7
|
)
|
||||||
Amounts reclassified from accumulated other comprehensive income (loss)
|
|
—
|
|
|
2.8
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
3.4
|
|
||||||
Income taxes
|
|
—
|
|
|
(1.1
|
)
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
(1.3
|
)
|
||||||
Net amounts reclassified from cumulative other comprehensive income (loss)
|
|
—
|
|
|
1.7
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
||||||
Total other comprehensive income (loss)
|
|
(5.7
|
)
|
|
1.3
|
|
|
0.4
|
|
|
0.4
|
|
|
—
|
|
|
(3.6
|
)
|
||||||
Balance at June 30, 2017
|
|
$
|
(52.0
|
)
|
|
$
|
(86.4
|
)
|
|
$
|
(4.8
|
)
|
|
$
|
3.1
|
|
|
$
|
(0.7
|
)
|
|
$
|
(140.8
|
)
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Dollar amounts in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service cost
|
$
|
1.1
|
|
|
$
|
1.4
|
|
|
$
|
2.2
|
|
|
$
|
2.7
|
|
Other components of net periodic pension cost:
|
|
|
|
|
|
|
|
||||||||
Interest cost
|
2.9
|
|
|
3.3
|
|
|
5.8
|
|
|
6.5
|
|
||||
Expected return on plan assets
|
(3.3
|
)
|
|
(3.3
|
)
|
|
(6.7
|
)
|
|
(6.5
|
)
|
||||
Amortization of prior service cost
1
|
0.1
|
|
|
0.2
|
|
|
0.2
|
|
|
0.4
|
|
||||
Amortization of net loss
1
|
1.5
|
|
|
1.4
|
|
|
3.1
|
|
|
2.8
|
|
||||
Net periodic pension cost
|
$
|
2.3
|
|
|
$
|
3.0
|
|
|
$
|
4.6
|
|
|
$
|
5.9
|
|
|
|
|
|
|
|
|
|
||||||||
Net periodic pension cost included in cost of sales
|
$
|
0.6
|
|
|
$
|
0.9
|
|
|
$
|
1.3
|
|
|
$
|
1.7
|
|
Net periodic pension cost included in selling, general, and administrative expenses
|
0.5
|
|
|
0.5
|
|
|
0.9
|
|
|
1.0
|
|
||||
Net periodic pension cost included in other non-operating items
|
1.2
|
|
|
1.6
|
|
|
2.4
|
|
|
3.2
|
|
||||
|
$
|
2.3
|
|
|
$
|
3.0
|
|
|
$
|
4.6
|
|
|
$
|
5.9
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
Quarter Ended June 30, 2018 (Dollar amounts in millions)
|
Siding
|
|
OSB
|
|
EWP
|
|
South America
|
|
Other
|
|
Corporate
|
|
Total
|
||||||||||||||
Income from continuing operations
|
$
|
62.7
|
|
|
$
|
157.4
|
|
|
$
|
8.6
|
|
|
$
|
9.6
|
|
|
$
|
(0.8
|
)
|
|
$
|
(74.6
|
)
|
|
$
|
162.9
|
|
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51.2
|
|
|
51.2
|
|
|||||||
Interest expense, net of capitalized interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.4
|
|
|
4.4
|
|
|||||||
Depreciation and amortization
|
8.4
|
|
|
13.6
|
|
|
4.3
|
|
|
2.3
|
|
|
0.7
|
|
|
0.8
|
|
|
30.1
|
|
|||||||
EBITDA from continuing operations
|
71.1
|
|
|
171.0
|
|
|
12.9
|
|
|
11.9
|
|
|
(0.1
|
)
|
|
(18.2
|
)
|
|
248.6
|
|
|||||||
Stock-based compensation expense
|
0.3
|
|
|
0.1
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
1.5
|
|
|
2.0
|
|
|||||||
Investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
|
(4.8
|
)
|
|||||||
Other operating credits and charges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.5
|
)
|
|
(4.5
|
)
|
|||||||
Other non-operating items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.7
|
|
|
0.7
|
|
|||||||
Adjusted EBITDA from continuing operations
|
$
|
71.4
|
|
|
$
|
171.1
|
|
|
$
|
13.0
|
|
|
$
|
11.9
|
|
|
$
|
(0.1
|
)
|
|
$
|
(25.3
|
)
|
|
$
|
242.0
|
|
Adjusted EBITDA Margin
|
27
|
%
|
|
44
|
%
|
|
12
|
%
|
|
26
|
%
|
|
(1
|
)%
|
|
NA
|
|
|
30
|
%
|
Quarter Ended June 30, 2017
(Dollar amounts in millions)
|
Siding
|
|
OSB
|
|
EWP
|
|
South America
|
|
Other
|
|
Corporate
|
|
Total
|
||||||||||||||
Income from continuing operations
|
$
|
49.0
|
|
|
$
|
103.0
|
|
|
$
|
5.3
|
|
|
$
|
5.5
|
|
|
$
|
(0.9
|
)
|
|
$
|
(67.4
|
)
|
|
$
|
94.5
|
|
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36.0
|
|
|
36.0
|
|
|||||||
Interest expense, net of capitalized interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.9
|
|
|
4.9
|
|
|||||||
Depreciation and amortization
|
7.5
|
|
|
14.9
|
|
|
3.7
|
|
|
2.2
|
|
|
0.5
|
|
|
0.8
|
|
|
29.6
|
|
|||||||
EBITDA from continuing operations
|
56.5
|
|
|
117.9
|
|
|
9.0
|
|
|
7.7
|
|
|
(0.4
|
)
|
|
(25.7
|
)
|
|
165.0
|
|
|||||||
Stock-based compensation expense
|
0.2
|
|
|
0.2
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
1.9
|
|
|||||||
Gain on sale or impairment of long-lived assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3.1
|
)
|
|
(3.1
|
)
|
|||||||
Investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.3
|
)
|
|
(2.3
|
)
|
|||||||
Other operating credits and charges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.0
|
|
|
2.0
|
|
|||||||
Other non-operating items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
|
3.1
|
|
|||||||
Adjusted EBITDA from continuing operations
|
$
|
56.7
|
|
|
$
|
118.1
|
|
|
$
|
9.1
|
|
|
$
|
7.7
|
|
|
$
|
(0.4
|
)
|
|
$
|
(24.6
|
)
|
|
$
|
166.6
|
|
Adjusted EBITDA Margin
|
25
|
%
|
|
36
|
%
|
|
10
|
%
|
|
20
|
%
|
|
(6
|
)%
|
|
NA
|
|
|
24
|
%
|
Six Months Ended June 30, 2018 (Dollar amounts in millions)
|
Siding
|
|
OSB
|
|
EWP
|
|
South America
|
|
Other
|
|
Corporate
|
|
Total
|
||||||||||||||
Income from continuing operations
|
$
|
108.0
|
|
|
$
|
254.8
|
|
|
$
|
11.4
|
|
|
$
|
18.5
|
|
|
$
|
(1.7
|
)
|
|
$
|
(133.2
|
)
|
|
$
|
257.8
|
|
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80.9
|
|
|
80.9
|
|
|||||||
Interest expense, net of capitalized interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8.8
|
|
|
8.8
|
|
|||||||
Depreciation and amortization
|
16.6
|
|
|
28.4
|
|
|
8.7
|
|
|
4.6
|
|
|
1.2
|
|
|
1.6
|
|
|
61.1
|
|
|||||||
EBITDA from continuing operations
|
124.6
|
|
|
283.2
|
|
|
20.1
|
|
|
23.1
|
|
|
(0.5
|
)
|
|
(41.9
|
)
|
|
408.6
|
|
|||||||
Stock-based compensation expense
|
0.5
|
|
|
0.4
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
3.1
|
|
|
4.2
|
|
|||||||
Gain on sale or impairment of long-lived assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.6
|
)
|
|
(0.6
|
)
|
|||||||
Investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.0
|
)
|
|
(8.0
|
)
|
|||||||
Other operating credits and charges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.9
|
)
|
|
(4.9
|
)
|
|||||||
Other non-operating items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.1
|
|
|
2.1
|
|
|||||||
Adjusted EBITDA from continuing operations
|
$
|
125.1
|
|
|
$
|
283.6
|
|
|
$
|
20.3
|
|
|
$
|
23.1
|
|
|
$
|
(0.5
|
)
|
|
$
|
(50.2
|
)
|
|
$
|
401.4
|
|
Adjusted EBITDA Margin
|
26
|
%
|
|
40
|
%
|
|
10
|
%
|
|
26
|
%
|
|
(3
|
)%
|
|
NA
|
|
|
27
|
%
|
Six Months Ended June 30, 2017 (Dollar amounts in millions)
|
Siding
|
|
OSB
|
|
EWP
|
|
South America
|
|
Other
|
|
Corporate
|
|
Total
|
||||||||||||||
Income from continuing operations
|
$
|
89.7
|
|
|
$
|
163.8
|
|
|
$
|
6.1
|
|
|
$
|
10.6
|
|
|
$
|
(1.1
|
)
|
|
$
|
(119.6
|
)
|
|
$
|
149.5
|
|
Provision for income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
51.5
|
|
|
51.5
|
|
|||||||
Interest expense, net of capitalized interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9.9
|
|
|
9.9
|
|
|||||||
Depreciation and amortization
|
15.6
|
|
|
29.6
|
|
|
7.6
|
|
|
4.4
|
|
|
1.4
|
|
|
1.6
|
|
|
60.2
|
|
|||||||
EBITDA from continuing operations
|
105.3
|
|
|
193.4
|
|
|
13.7
|
|
|
15.0
|
|
|
0.3
|
|
|
(56.6
|
)
|
|
271.1
|
|
|||||||
Stock-based compensation expense
|
0.4
|
|
|
0.4
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
5.1
|
|
|
6.0
|
|
|||||||
Gain on sale or impairment of long-lived assets, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2.5
|
)
|
|
(2.5
|
)
|
|||||||
Investment income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.3
|
)
|
|
(4.3
|
)
|
|||||||
Other operating credits and charges, net
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.4
|
|
|
5.4
|
|
|||||||
Other non-operating items
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5.0
|
|
|
5.0
|
|
|||||||
Adjusted EBITDA from continuing operations
|
$
|
105.7
|
|
|
$
|
193.8
|
|
|
$
|
13.8
|
|
|
$
|
15.0
|
|
|
$
|
0.3
|
|
|
$
|
(47.9
|
)
|
|
$
|
280.7
|
|
Adjusted EBITDA Margin
|
24
|
%
|
|
33
|
%
|
|
8
|
%
|
|
20
|
%
|
|
2
|
%
|
|
NA
|
|
|
22
|
%
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
$
|
162.7
|
|
|
$
|
94.5
|
|
|
$
|
253.6
|
|
|
$
|
149.5
|
|
Add (deduct):
|
|
|
|
|
|
|
|
||||||||
Loss from discontinued operations
|
0.2
|
|
|
—
|
|
|
4.2
|
|
|
—
|
|
||||
Gain on sale or impairment of long-lived assets, net
|
—
|
|
|
(3.1
|
)
|
|
(0.6
|
)
|
|
(2.5
|
)
|
||||
Other operating credits and charges, net
|
(4.5
|
)
|
|
2.0
|
|
|
(4.9
|
)
|
|
5.4
|
|
||||
Reported tax provision
|
51.2
|
|
|
36.0
|
|
|
80.9
|
|
|
51.5
|
|
||||
Normalized tax provision at 25% for 2018 and 35% for 2017
|
(52.4
|
)
|
|
(45.3
|
)
|
|
(83.3
|
)
|
|
(71.4
|
)
|
||||
Adjusted income from continuing operations
|
$
|
157.2
|
|
|
$
|
84.1
|
|
|
$
|
249.9
|
|
|
$
|
132.5
|
|
Diluted shares outstanding
|
146.2
|
|
|
146.2
|
|
|
146.4
|
|
|
146.0
|
|
||||
Adjusted income from continuing operations per diluted share
|
$
|
1.08
|
|
|
$
|
0.58
|
|
|
$
|
1.71
|
|
|
$
|
0.91
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
Net sales
|
$
|
261.6
|
|
|
$
|
231.0
|
|
|
13
|
%
|
|
$
|
488.6
|
|
|
$
|
445.0
|
|
|
10
|
%
|
Operating income
|
$
|
62.7
|
|
|
$
|
49.0
|
|
|
28
|
%
|
|
$
|
108.0
|
|
|
$
|
89.7
|
|
|
20
|
%
|
Adjusted EBITDA from continuing operations
|
$
|
71.4
|
|
|
$
|
56.7
|
|
|
26
|
%
|
|
$
|
125.1
|
|
|
$
|
105.7
|
|
|
18
|
%
|
Adjusted EBITDA margin
|
27
|
%
|
|
25
|
%
|
|
|
|
|
26
|
%
|
|
24
|
%
|
|
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
SmartSide
®
strand siding
|
$
|
193.5
|
|
|
$
|
164.3
|
|
|
18
|
%
|
|
358.6
|
|
|
$
|
320.4
|
|
|
12
|
%
|
|
SmartSide
®
fiber siding
|
27.9
|
|
|
29.3
|
|
|
(5
|
)%
|
|
53.8
|
|
|
58.0
|
|
|
(7
|
)%
|
||||
CanExel siding
|
12.5
|
|
|
14.2
|
|
|
(12
|
)%
|
|
26.4
|
|
|
28.5
|
|
|
(7
|
)%
|
||||
OSB - commodity
|
12.4
|
|
|
21.0
|
|
|
(41
|
)%
|
|
21.1
|
|
|
33.4
|
|
|
(37
|
)%
|
||||
OSB - value add
|
12.4
|
|
|
—
|
|
|
100
|
%
|
|
21.6
|
|
|
—
|
|
|
100
|
%
|
||||
Other
|
2.9
|
|
|
2.2
|
|
|
32
|
%
|
|
7.1
|
|
|
4.7
|
|
|
51
|
%
|
||||
Total
|
$
|
261.6
|
|
|
$
|
231.0
|
|
|
13
|
%
|
|
$
|
488.6
|
|
|
$
|
445.0
|
|
|
10
|
%
|
|
Quarter Ended June 30,
2018 versus 2017 |
|
Six Months Ended June 30,
2018 versus 2017 |
||||||||
|
Average Net
Selling Price
|
|
Unit
Shipments
|
|
Average Net
Selling Price
|
|
Unit
Shipments
|
||||
SmartSide
®
strand siding
|
4
|
%
|
|
15
|
%
|
|
4
|
%
|
|
7
|
%
|
SmartSide
®
fiber siding
|
11
|
%
|
|
(12
|
)%
|
|
8
|
%
|
|
(14
|
)%
|
CanExel siding
|
7
|
%
|
|
(18
|
)%
|
|
7
|
%
|
|
(14
|
)%
|
OSB
|
38
|
%
|
|
(15
|
)%
|
|
31
|
%
|
|
(3
|
)%
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
Net sales
|
$
|
387.4
|
|
|
$
|
325.0
|
|
|
19
|
%
|
|
$
|
700.7
|
|
|
$
|
593.4
|
|
|
18
|
%
|
Operating income
|
$
|
157.4
|
|
|
$
|
103.0
|
|
|
53
|
%
|
|
$
|
254.8
|
|
|
$
|
163.8
|
|
|
56
|
%
|
Adjusted EBITDA from continuing operations
|
$
|
171.1
|
|
|
$
|
118.1
|
|
|
45
|
%
|
|
$
|
283.6
|
|
|
$
|
193.8
|
|
|
46
|
%
|
Adjusted EBITDA Margin
|
44
|
%
|
|
36
|
%
|
|
|
|
40
|
%
|
|
33
|
%
|
|
|
|
Quarter Ended June 30,
2018 versus 2017 |
|
Six Months Ended June 30,
2018 versus 2017 |
||||||||
|
Average Net
Selling Price
|
|
Unit
Shipments
|
|
Average Net
Selling Price
|
|
Unit
Shipments
|
||||
OSB - commodity
|
25
|
%
|
|
(3
|
)%
|
|
22
|
%
|
|
(1
|
)%
|
OSB - value-add
|
23
|
%
|
|
(4
|
)%
|
|
19
|
%
|
|
(3
|
)%
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
Net sales
|
$
|
109.1
|
|
|
$
|
94.2
|
|
|
16
|
%
|
|
$
|
209.8
|
|
|
$
|
176.3
|
|
|
19
|
%
|
Operating income
|
$
|
8.6
|
|
|
$
|
5.3
|
|
|
62
|
%
|
|
$
|
11.4
|
|
|
$
|
6.1
|
|
|
87
|
%
|
Adjusted EBITDA from continuing operations
|
$
|
13.0
|
|
|
$
|
9.1
|
|
|
43
|
%
|
|
$
|
20.3
|
|
|
$
|
13.8
|
|
|
47
|
%
|
Adjusted EBITDA margin
|
12
|
%
|
|
10
|
%
|
|
|
|
|
10
|
%
|
|
8
|
%
|
|
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
LVL
|
$
|
40.4
|
|
|
$
|
37.2
|
|
|
9
|
%
|
|
$
|
77.0
|
|
|
$
|
70.2
|
|
|
10
|
%
|
LSL
|
17.4
|
|
|
12.0
|
|
|
45
|
%
|
|
30.7
|
|
|
22.6
|
|
|
36
|
%
|
||||
I-Joist
|
31.5
|
|
|
30.4
|
|
|
4
|
%
|
|
63.6
|
|
|
56.1
|
|
|
13
|
%
|
||||
OSB - commodity
|
5.2
|
|
|
4.0
|
|
|
30
|
%
|
|
8.0
|
|
|
5.1
|
|
|
57
|
%
|
||||
OSB - value add
|
3.8
|
|
|
3.6
|
|
|
6
|
%
|
|
7.9
|
|
|
6.5
|
|
|
22
|
%
|
||||
Plywood
|
8.0
|
|
|
5.8
|
|
|
38
|
%
|
|
15.6
|
|
|
10.6
|
|
|
47
|
%
|
||||
Other
|
2.8
|
|
|
1.2
|
|
|
133
|
%
|
|
7.0
|
|
|
5.2
|
|
|
35
|
%
|
||||
Total
|
$
|
109.1
|
|
|
$
|
94.2
|
|
|
16
|
%
|
|
$
|
209.8
|
|
|
$
|
176.3
|
|
|
19
|
%
|
|
Quarter Ended June 30,
2018 versus 2017 |
|
Six Months Ended June 30,
2018 versus 2017 |
||||||||
|
Average Net
Selling Price
|
|
Unit
Shipments
|
|
Average Net
Selling Price
|
|
Unit
Shipments
|
||||
LVL
|
10
|
%
|
|
(1
|
)%
|
|
10
|
%
|
|
1
|
%
|
LSL
|
8
|
%
|
|
34
|
%
|
|
9
|
%
|
|
26
|
%
|
I-Joist
|
11
|
%
|
|
(7
|
)%
|
|
9
|
%
|
|
5
|
%
|
OSB
|
23
|
%
|
|
(4
|
)%
|
|
19
|
%
|
|
16
|
%
|
Plywood
|
35
|
%
|
|
1
|
%
|
|
29
|
%
|
|
14
|
%
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
Net sales
|
$
|
45.3
|
|
|
$
|
38.7
|
|
|
17
|
%
|
|
$
|
87.7
|
|
|
$
|
76.5
|
|
|
15
|
%
|
Operating income
|
$
|
9.6
|
|
|
$
|
5.5
|
|
|
75
|
%
|
|
$
|
18.5
|
|
|
$
|
10.6
|
|
|
75
|
%
|
Adjusted EBITDA from continuing operations
|
$
|
11.9
|
|
|
$
|
7.7
|
|
|
55
|
%
|
|
$
|
23.1
|
|
|
$
|
15.0
|
|
|
54
|
%
|
Adjusted EBITDA margin
|
26
|
%
|
|
20
|
%
|
|
|
|
|
26
|
%
|
|
20
|
%
|
|
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
OSB - value add
|
$
|
37.2
|
|
|
$
|
33.2
|
|
|
12
|
%
|
|
$
|
72.1
|
|
|
$
|
63.8
|
|
|
13
|
%
|
SmartSide strand siding
|
6.9
|
|
|
4.6
|
|
|
50
|
%
|
|
13.7
|
|
|
10.8
|
|
|
27
|
%
|
||||
Other
|
1.2
|
|
|
0.9
|
|
|
33
|
%
|
|
1.9
|
|
|
1.9
|
|
|
—
|
%
|
||||
Total
|
$
|
45.3
|
|
|
$
|
38.7
|
|
|
17
|
%
|
|
$
|
87.7
|
|
|
$
|
76.5
|
|
|
15
|
%
|
|
Quarter Ended June 30,
2018 versus 2017 |
|
Six Months Ended June 30,
2018 versus 2017 |
||||||||
|
Average Net
Selling Price
|
|
Unit
Shipments
|
|
Average Net
Selling Price
|
|
Unit
Shipments
|
||||
OSB
|
29
|
%
|
|
(6
|
)%
|
|
3
|
%
|
|
(7
|
)%
|
Siding
|
7
|
%
|
|
35
|
%
|
|
6
|
%
|
|
16
|
%
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
Change
|
|
2018
|
|
2017
|
|
Change
|
||||||||||
Net sales
|
$
|
7.4
|
|
|
$
|
7.1
|
|
|
4
|
%
|
|
$
|
15.3
|
|
|
$
|
15.8
|
|
|
(3
|
)%
|
Operating losses
|
$
|
(0.8
|
)
|
|
$
|
(0.9
|
)
|
|
11
|
%
|
|
$
|
(1.7
|
)
|
|
$
|
(1.1
|
)
|
|
(55
|
)%
|
Adjusted EBITDA from continuing operations
|
$
|
(0.1
|
)
|
|
$
|
(0.4
|
)
|
|
75
|
%
|
|
$
|
(0.5
|
)
|
|
$
|
0.3
|
|
|
NM
|
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
Dollar amounts in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest income
|
$
|
4.7
|
|
|
$
|
2.1
|
|
|
$
|
8.2
|
|
|
$
|
3.8
|
|
SERP market adjustments
|
0.1
|
|
|
0.2
|
|
|
(0.2
|
)
|
|
0.5
|
|
||||
Investment income
|
4.8
|
|
|
2.3
|
|
|
8.0
|
|
|
4.3
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
(5.1
|
)
|
|
(5.1
|
)
|
|
(10.3
|
)
|
|
(10.3
|
)
|
||||
Amortization of debt charges
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.4
|
)
|
|
(0.4
|
)
|
||||
Capitalized interest
|
0.9
|
|
|
0.4
|
|
|
1.8
|
|
|
0.8
|
|
||||
Interest expense, net of capitalized interest
|
(4.4
|
)
|
|
(4.9
|
)
|
|
(8.9
|
)
|
|
(9.9
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Net periodic pension cost, excluding service cost
|
(1.2
|
)
|
|
(1.6
|
)
|
|
(2.3
|
)
|
|
(3.2
|
)
|
||||
Foreign currency gain (loss)
|
0.5
|
|
|
(1.5
|
)
|
|
0.3
|
|
|
(1.8
|
)
|
||||
Other non-operating items
|
(0.7
|
)
|
|
(3.1
|
)
|
|
(2.0
|
)
|
|
(5.0
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Total non-operating expense
|
$
|
(0.3
|
)
|
|
$
|
(5.7
|
)
|
|
$
|
(0.6
|
)
|
|
$
|
(10.6
|
)
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
|
Quarter Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Housing starts
1
:
|
|
|
|
|
|
|
|
||||
Single Family
|
257.9
|
|
|
237.3
|
|
|
452.7
|
|
|
418.7
|
|
Multi-Family
|
94.9
|
|
|
89.8
|
|
|
188.6
|
|
|
175.6
|
|
|
352.8
|
|
|
327.1
|
|
|
641.3
|
|
|
594.3
|
|
1
Actual U.S. Housing starts data reported by U.S. Census Bureau
|
|
Quarter Ended June 30, 2018
|
|
Quarter Ended June 30, 2017
|
||||||||||||||
Sales Volume
|
Siding
|
OSB
|
EWP
|
Total
|
|
Siding
|
OSB
|
EWP
|
Total
|
||||||||
SmartSide® Strand siding (MMSF)
|
308.6
|
|
—
|
|
—
|
|
308.6
|
|
|
269.4
|
|
—
|
|
—
|
|
269.4
|
|
SmartSide® fiber siding (MMSF)
|
57.7
|
|
—
|
|
—
|
|
57.7
|
|
|
65.8
|
|
—
|
|
—
|
|
65.8
|
|
CanExel® siding (MMSF)
|
12.1
|
|
—
|
|
—
|
|
12.1
|
|
|
14.7
|
|
—
|
|
—
|
|
14.7
|
|
OSB - commodity (MMSF)
|
34.4
|
|
662.6
|
|
13.9
|
|
710.9
|
|
|
76.7
|
|
684.9
|
|
14.9
|
|
776.5
|
|
OSB - value added (MMSF)
|
31.1
|
|
399.8
|
|
11.0
|
|
441.9
|
|
|
—
|
|
415.7
|
|
11.0
|
|
426.7
|
|
LVL (MMCF)
|
—
|
|
—
|
|
1.9
|
|
1.9
|
|
|
—
|
|
—
|
|
2.0
|
|
2.0
|
|
LSL (MMCF)
|
—
|
|
—
|
|
1.1
|
|
1.1
|
|
|
—
|
|
—
|
|
0.8
|
|
0.8
|
|
I-joist (MMLF)
|
—
|
|
—
|
|
21.7
|
|
21.7
|
|
|
—
|
|
—
|
|
23.2
|
|
23.2
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Six Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2017
|
||||||||||||||
Sales Volume
|
Siding
|
OSB
|
EWP
|
Total
|
|
Siding
|
OSB
|
EWP
|
Total
|
||||||||
SmartSide® Strand siding (MMSF)
|
571.4
|
|
—
|
|
—
|
|
571.4
|
|
|
534.0
|
|
—
|
|
—
|
|
534.0
|
|
SmartSide® fiber siding (MMSF)
|
113.3
|
|
—
|
|
—
|
|
113.3
|
|
|
132.2
|
|
—
|
|
—
|
|
132.2
|
|
CanExel® siding (MMSF)
|
24.9
|
|
—
|
|
—
|
|
24.9
|
|
|
28.8
|
|
—
|
|
—
|
|
28.8
|
|
OSB - commodity (MMSF)
|
65.0
|
|
1,278.5
|
|
25.3
|
|
1,368.8
|
|
|
126.2
|
|
1,287.2
|
|
19.5
|
|
1,432.9
|
|
OSB - value added (MMSF)
|
57.6
|
|
783.2
|
|
20.7
|
|
861.5
|
|
|
—
|
|
805.2
|
|
20.0
|
|
825.2
|
|
LVL (MMCF)
|
—
|
|
—
|
|
3.8
|
|
3.8
|
|
|
—
|
|
—
|
|
3.8
|
|
3.8
|
|
LSL (MMCF)
|
—
|
|
—
|
|
2.0
|
|
2.0
|
|
|
—
|
|
—
|
|
1.6
|
|
1.6
|
|
I-joist (MMLF)
|
—
|
|
—
|
|
45.5
|
|
45.5
|
|
|
—
|
|
—
|
|
43.2
|
|
43.2
|
|
|
OSB
Western Canada 7/16" Basis
|
OSB
Southwest 7/16" Basis
|
OSB
N. Central 7/16" Basis
|
Average
|
|
|
|
2017 1st Qtr. Avg.
|
$263
|
$308
|
$292
|
2017 2nd Qtr. Avg.
|
$318
|
$328
|
$327
|
2018 1st Qtr. Avg.
|
$356
|
$346
|
$367
|
2018 2nd Qtr. Avg.
|
$408
|
$435
|
$423
|
Source:
|
Random Lengths
|
Item 1.
|
Legal Proceedings.
|
Item 1A.
|
Risk Factors.
|
Period
|
Total Number of Shares Repurchased
|
|
Average Price Paid Per Share
|
|
Total Number of Shares Purchased as part of Publicly Announced Purchase Plan or Program
|
|
Maximum Dollar Value of Shares That May Yet be Purchased under the Plans or Programs
|
||||
April 1, 2018 - April 30, 2018
|
—
|
|
|
—
|
|
|
—
|
|
|
$100,000,000
|
|
May 1, 2018 - May 31, 2018
|
613,939
|
|
|
$27.99
|
|
613,939
|
|
|
82,815,847
|
|
|
June 1, 2018 - June 30, 2018
|
769,175
|
|
|
$28.19
|
|
769,175
|
|
|
61,132,804
|
|
|
|
1,383,114
|
|
|
$28.11
|
|
1,383,114
|
|
|
|
Item 3.
|
Defaults Upon Senior Securities.
|
Item 4.
|
Mine Safety Disclosures.
|
Item 5.
|
Other Information.
|
Item 6.
|
Exhibits.
|
10.1
|
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
100.INS
|
XBRL Instance Document
|
|
|
100.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
100.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
100.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
100.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
100.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
LOUISIANA-PACIFIC CORPORATION
|
|
|
|
|
|
Date:
|
August 7, 2018
|
B
Y
:
|
/S/ W. BRADLEY SOUTHERN
|
|
|
|
W. Bradley Southern
|
|
|
|
Chief Executive Officer
|
|
|
|
|
Date:
|
August 7, 2018
|
B
Y
:
|
/S/ REBECCA BARCKLEY
|
|
|
|
Rebecca Barckley
|
|
|
|
Controller, Financial Reporting
|
|
|
|
(Principal Accounting Officer)
|
1.
|
Definitions.
|
2.
|
Resignation and Retirement.
|
3.
|
Payment of Amounts Earned and Owing.
|
a.
|
Regular salary and benefits through the Retirement Date.
|
b.
|
The sum of $32,954 as separation pay. Bailey agrees any payments due to LP for outstanding personal credit card expenses will be withheld from this payment.
|
c.
|
Payment for unused Paid Time Off (PTO) hours up to the maximum allowed of 200 hours, as defined in LP’s Salaried PTO Policy.
|
d.
|
LP acknowledges that Bailey has accrued benefits and rights under the Louisiana-Pacific Corporation 2004 Executive Deferred Compensation Plan (the “LP Deferred Compensation Plan”). Bailey’s benefits under the LP Deferred Compensation Plan shall be payable in accordance with the terms of the LP Deferred Compensation Plan.
|
e.
|
LP and Bailey acknowledge that Bailey’s rights under all other LP employee benefit plans shall be determined in accordance with the terms thereof, except as expressly provided in this agreement.
|
4.
|
Additional Compensation.
|
a.
|
Additional compensation in an aggregate amount of $1,252,246, to be paid in monthly payments of $69,569.22 for 18 months, in accordance with LP’s normal payroll cycle beginning on the first pay period after the later of the Effective Date (as defined below) or the Retirement Date.
|
b.
|
Monthly COBRA reimbursement payments until the earlier of (a) your eligibility for group health benefits through new employment or otherwise, or (b) 18 months after the Retirement Date, which amount shall not exceed $20,575. In addition, if LP provides monthly COBRA reimbursement payments for the maximum 18-month period, LP agrees to pay Bailey an additional $20,000 for the purpose of defraying the cost of health coverage obtained by Bailey after such period. Such payment will be made on January 13, 2020.
|
c.
|
Payment for up to 18 months of outplacement benefits provided by a service provider selected by Bailey, beginning on June 12, 2018, but in no event shall such payments exceed $10,000.
|
d.
|
Through the end of 2019, the current level of tax and financial planning services provided by Ayco, and the cost of tax return preparation services by Ayco for the 2018 tax year.
|
e.
|
Reimbursement of legal fees incurred by you in connection with the negotiation of this agreement, in an amount not to exceed $10,000.
|
f.
|
Vesting of equity grants consisting of 26,048 Restricted Stock shares, 12,069 Restricted Stock shares and 14,964 Restricted Stock Units from 2016, 2017 and 2018 respectively. Bailey acknowledges that these awards would normally be forfeited upon her cessation of employment. LP, pursuant to the Compensation Committee authority, amends the Restricted Stock Form of Awards for 2016 and 2017, and the Restricted Stock Unit Form of Award for 2018, to remove any requirement of continued employment at the Company; such equity grants will be subject to any other vesting or performance criteria required by the relevant grant agreements. In the case of the 14,964 Restricted Stock Units for 2018, the shares in the settlement of such award will be delivered on the date otherwise specified in the award agreement (i.e., generally February 2021). The amendment is effective on the later of the Retirement Date or the Effective Date. However, the amendment is contingent upon Bailey executing, and not timely revoking, this agreement.
|
g.
|
LP acknowledges that Bailey has accrued benefits and rights under the Louisiana-Pacific Corporation Supplemental Executive Retirement Plan, amended and restated effective July 1, 2008 (the “LP SERP”). LP agrees to treat Bailey’s
separation as a retirement with the approval of the Compensation Committee for purposes of calculating Bailey’s benefit under the LP SERP. Bailey’s benefits under the LP SERP shall be payable in accordance with the terms of the LP SERP.
|
h.
|
Bailey acknowledges that but for this agreement she is not entitled to any of the additional payments described in this section.
|
i.
|
The foregoing payments and benefits shall be in lieu of and shall discharge any obligations of LP to Bailey for any rights or claims of any type, including, but not limited to, any and all rights that Bailey may have arising out of the Performance Shares Award Agreement, and any other plan, agreement, offer letter, or contract of any type, or any other expectation of remuneration or benefit on the part of Bailey.
|
5.
|
Cooperation.
|
a.
|
Cooperation Prior To The Retirement Date
|
b.
|
Cooperation After The Retirement Date
|
6.
|
Release.
|
7.
|
Company Information.
|
8.
|
Return of Property.
|
9.
|
Non-Disparagement.
|
10.
|
Non-Solicitation.
|
11.
|
Attorneys’ Fees.
|
12.
|
Choice of Law.
|
13.
|
Severability.
|
14.
|
No Admission.
|
15.
|
Provisions of Older Worker Benefit Protection Act/Waiver of Age Discrimination in Employment Act Claims.
|
16.
|
Counterparts.
|
17.
|
No Representation
|
18.
|
Taxes.
|
1.
|
I have reviewed this report on Form 10-Q of Louisiana-Pacific Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
August 7, 2018
|
/S/ W. BRADLEY SOUTHERN
|
|
|
W. BRADLEY SOUTHERN
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this report on Form 10-Q of Louisiana-Pacific Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent function):
|
a)
|
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date:
|
August 7, 2018
|
/S/ MIKE KINNEY
|
|
|
MIKE KINNEY
|
|
|
Interim Chief Financial Officer
|
|
|
Director, Investor Relations and Treasurer
|
Re:
|
Certification Pursuant to § 906 of the Sarbanes-Oxley Act of 2002
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.
|
/S/ W. BRADLEY SOUTHERN
|
Name: W. BRADLEY SOUTHERN
Title: Chief Executive Officer
|
/S/ MIKE KINNEY
|
Name: MIKE KINNEY
Title: Director, Investor Relations and Treasurer (Interim Chief Financial Officer)
|