LP Reports Fourth Quarter and Year-End 2003 Profits
PORTLAND, Ore.--(BUSINESS WIRE)--Feb. 5, 2004--Louisiana-Pacific Corporation (LP) (NYSE:LPX) reported today fourth quarter net income of $171.7 million, or $1.60 per diluted share, on sales from continuing operations of $734 million. In the fourth quarter of 2002, LP's net loss was $42.6 million, or $0.41 per diluted share, on sales from continuing operations of $360 million. For the full year of 2003, LP reported net income of $280.5 million, or $2.63 per diluted share, on sales from continuing operations of $2.3 billion compared to a net loss of $62.0 million, or $0.59 per diluted share, on sales from continuing operations of $1.6 billion for 2002.
For the fourth quarter of 2003, income from continuing operations was $171.2 million, or $1.60 per diluted share. In the fourth quarter of 2002, LP's loss from continuing operations was $28.2 million, or $0.27 per diluted share. For the full year of 2003, income from continuing operations before cumulative effect of accounting principle was $292.0 million, or $2.74 per diluted share. For the full year of 2002, LP's loss from continuing operations before cumulative effect of accounting principle was $2.9 million, or $0.03 per diluted share.
"Record pricing for oriented strand board (OSB), strong overall demand for our building products and solid execution by our operations made 2003 an outstanding year," said Mark A. Suwyn, LP chairman and chief executive officer. "We believe our businesses are well positioned to provide excellent operating results in 2004."
"To ensure continued good results, we are investing in our core businesses. We're implementing a multi-year $250 million capital investment plan to employ the latest technologies in our existing OSB mills, which will further lower costs, improve efficiencies and increase capacity," stated Suwyn. "We are also proceeding with a new, state of the art OSB mill in British Columbia with our partner Slocan Forest Products and expanding our WeatherBest(R) decking and SmartSide(TM) siding businesses to meet growing demand."
"In 2003, we substantially completed our major divestiture and asset sales program, generating a total value of more than $750 million, which exceeded our original targets," Suwyn said. "With our financial position markedly improved, we have restored the dividend and believe that our credit agency ratings should improve. These accomplishments have put us in an excellent position for the future. We have well defined strategies for each of our businesses, the necessary focus to execute those strategies and the financial resources to do so."
At 11:00 a.m. EST (8:00 a.m. PST) today, LP will host a webcast on its fourth quarter and year-end 2003 financial results. To access the live webcast and accompanying presentation, visit www.lpcorp.com and go to the "Investor Relations" section from the main menu.
LP is a premier supplier of building materials, delivering innovative, high-quality commodity and specialty products to its retail, wholesale, homebuilding and industrial customers. Visit LP's web site at www.lpcorp.com for additional information on the company.
FORWARD LOOKING STATEMENTS
This news release contains statements concerning Louisiana-Pacific Corporation's (LP) future results and performance that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The matters addressed in these statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially from those projected, including, but not limited to, the effect of general economic conditions, including the level of interest rates and housing starts, market demand for the company's products, and prices for structural products; the effect of forestry, land use, environmental and other governmental regulations; the ability to obtain regulatory approvals; and the risk of losses from fires, floods and other natural disasters. These and other factors that could cause or contribute to actual results differing materially from those contemplated by such forward-looking statements are discussed in greater detail in the company's Securities and Exchange Commission filings.
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
FINANCIAL AND QUARTERLY DATA
(Dollar amounts in millions, except per share amounts) (Unaudited)
Quarter Ended Year Ended
--------------- -------------------
December 31, December 31,
--------------- -------------------
2003 2002 2003 2002
------- ------- --------- ---------
Net sales $733.8 $360.3 $2,300.2 $1,600.1
Income (loss) before taxes,
minority interest, and equity in
earnings of unconsolidated
affiliates $308.8 $(30.9) $ 528.2 $ 9.4
Income (loss) before taxes,
minority interest, and equity in
earnings of unconsolidated
affiliates excluding (gain) loss
on sale or impairment of long-
lived assets and other operating
credits and charges, net $225.9 $(21.9) $ 412.2 $ (22.4)
Income (loss) from continuing
operations before cumulative
effect of change in accounting
principle $171.2 $(28.2) $ 292.0 $ (2.9)
Net income (loss) $171.7 $(42.6) $ 280.5 $ (62.0)
Net income (loss) per share
- basic $ 1.61 $(0.41) $ 2.66 $ (0.59)
- diluted $ 1.60 $(0.41) $ 2.63 $ (0.59)
Average shares outstanding (in
millions)
Basic 106.0 104.6 105.5 104.6
Diluted 107.6 104.6 106.5 104.6
Calculation of income from continuing operations before taxes, minority interest and equity in earnings of unconsolidated affiliate, excluding gain or loss on sale or impairment of long-lived assets and other operating credits and charges, net:
Income before taxes, minority
interest, and equity in earnings
of unconsolidated affiliates $308.8 $(30.9) $ 528.2 $ 9.4
(Gain) loss on sale or impairment
of long-lived assets (54.0) (18.3) (118.2) (61.3)
Other operating credits and
charges, net (28.9) 27.3 2.2 29.5
------ ------ -------- --------
Income (loss) before taxes,
minority interest, and equity in
earnings of unconsolidated
affiliates excluding (gain) loss
on sale or impairment of long-
lived assets and other operating
credits and charges, net $225.9 $(21.9) $ 412.2 $ (22.4)
====== ====== ======== ========
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions, except per share amounts) (Unaudited)
Quarter Ended Year Ended
December 31, December 30,
--------------- -------------------
2003 2002 2003 2002
------- ------- --------- ---------
Net Sales $733.8 $360.3 $2,300.2 $1,600.1
OPERATING COSTS AND EXPENSES
Cost of sales 414.0 302.4 1,530.7 1,283.5
Depreciation, amortization and
cost of timber harvested 36.2 32.8 135.0 138.9
Selling and administrative 48.2 30.5 167.2 133.9
(Gain) loss on sale or
impairment of long lived assets (54.0) (18.3) (118.2) (61.3)
Other operating credits and
charges, net (28.9) 27.3 2.2 29.5
------ ------- -------- --------
Total operating costs and
expenses 415.5 374.7 1,716.9 1,524.5
------ ------- -------- --------
Income (loss) from operations 318.3 (14.4) 583.3 75.6
------ ------ -------- --------
NON-OPERATING INCOME (EXPENSE)
Foreign currency exchange gain
(loss) 1.8 (1.6) 1.0 (3.2)
Gain (loss) on early
extinguishment of debt - - (1.5) -
Interest expense (21.3) (23.7) (88.5) (95.8)
Interest income 10.0 8.8 33.9 32.8
------ ------ -------- --------
Total non-operating income
(expense) (9.5) (16.5) (55.1) (66.2)
------ ------ -------- --------
Income (loss) before taxes,
minority interest, and equity in
earnings of unconsolidated
affiliates 308.8 (30.9) 528.2 9.4
Provision (benefit) for income
taxes 139.2 (2.2) 238.1 16.0
-
Equity in (income) loss of
unconsolidated affiliates (1.6) (0.5) (1.9) (2.8)
Minority interest in net income
(loss) of consolidated subsidiary - - - (0.9)
------ ------ -------- --------
Income (loss) from continuing
operations before cumulative
effect of change in accounting
principle 171.2 (28.2) 292.0 (2.9)
DISCONTINUED OPERATIONS
Income (loss) from discontinued
operations 0.7 (24.1) (18.9) (90.3)
Provision (benefit) for income
taxes 0.2 (9.7) (7.3) (35.0)
------ ------ -------- --------
Income (loss) from discontinued
operations 0.5 (14.4) (11.6) (55.3)
------ ------ -------- --------
Income (loss) before cumulative
effect of change in accounting
principle 171.7 (42.6) 280.4 (58.2)
Cumulative effect of change in
accounting principle - - 0.1 (3.8)
------ ------ -------- --------
Net income (loss) $171.7 $(42.6) $ 280.5 $ (62.0)
====== ====== ======== ========
Net income (loss) per share of
common stock:
Income (loss) from continuing
operations $ 1.61 $(0.27) $ 2.77 $ (0.03)
Income (loss) from discontinued
operations - (0.14) (0.11) (0.53)
Cumulative effect of change in
accounting principle - - - (0.03)
------ ------ -------- --------
Net Income (Loss) Per Share
- Basic $ 1.61 $(0.41) $ 2.66 $ (0.59)
====== ====== ======== ========
Net income (loss) per share of
common stock:
Income (loss) from continuing
operations $ 1.60 $(0.27) $ 2.74 $ (0.03)
Income (loss) from discontinued
operations - (0.14) (0.11) (0.53)
Cumulative effect of change in
accounting principle - - - (0.03)
------ ------ -------- --------
Net Income (Loss) Per Share
- Diluted $ 1.60 $(0.41) $ 2.63 $ (0.59)
====== ====== ======== ========
Average shares of common stock
outstanding (in millions)
- Basic 106.0 104.6 105.5 104.6
====== ====== ======== ========
- Diluted 107.6 104.6 106.5 104.6
====== ====== ======== ========
CONDENSED CONSOLIDATED BALANCE SHEETS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
December 31, December 31,
2003 2002
------------ ------------
ASSETS
Cash and cash equivalents $ 925.9 $ 137.3
Receivables, net 136.1 99.3
Inventories 183.0 163.5
Prepaid expenses 11.1 11.3
Deferred income taxes 46.7 38.6
Current assets of discontinued operations 17.4 41.3
----------- -----------
Total current assets 1,320.2 491.3
Timber and timberlands
Forest licenses 92.5 97.3
Deposits and other 11.5 15.1
Timber and timberlands held for sale - 377.5
----------- -----------
Total timber and timberlands 104.0 489.9
Property, plant and equipment 1,793.0 1,776.9
Accumulated depreciation (990.7) (928.6)
----------- -----------
Net property, plant and equipment 802.3 848.3
Goodwill 276.7 276.7
Other intangible assets 26.6 29.9
Notes receivable from asset sales 403.9 403.9
Assets transferred under contractual
arrangement - 29.1
Restricted cash 110.7 46.8
Other assets 121.1 63.9
Long-term assets of discontinued operations 33.9 100.2
----------- -----------
Total assets $ 3,199.4 $ 2,780.0
=========== ===========
LIABILITIES AND EQUITY
Current portion of long-term debt $ 8.3 $ 35.3
Accounts payable and accrued liabilities 251.3 211.1
Current portion of contingency reserves 30.0 20.0
----------- -----------
Total current liabilities 289.6 266.4
Long-term debt, excluding current portion:
Limited recourse notes payable 396.5 396.5
Other long-term debt 624.2 680.5
----------- -----------
Total long-term debt, excluding
current portion 1,020.7 1,077.0
Contingency reserves, excluding current
portion 55.6 106.1
Liabilities transferred under contractual
arrangement - 15.3
Deferred income taxes 407.7 216.1
Other long-term liabilities and pension
obligations 106.9 92.9
Commitments and contingencies
Stockholders' equity:
Common stock 116.9 116.9
Additional paid-in capital 442.3 447.0
Retained earnings 1,026.1 745.6
Treasury stock (195.2) (230.2)
Accumulated comprehensive loss (71.2) (73.1)
----------- -----------
Total stockholders' equity 1,318.9 1,006.2
----------- -----------
Total liabilities and equity $ 3,199.4 $ 2,780.0
=========== ===========
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
(Dollar amounts in millions) (Unaudited)
Year Ended
December 31,
-------------------
2003 2002
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 280.5 $ (62.0)
Adjustments to reconcile net income (loss) to net
cash provided by operating activities:
Depreciation, amortization and cost of timber
harvested 141.3 157.6
(Gain) loss on sale or impairment on long-lived
assets (98.7) (10.7)
Other operating charges and credits 6.6 3.6
Exchange loss on remeasurement 6.9 1.0
Increase in contingency reserves 17.0 27.2
Cash settlement of contingencies (52.4) (52.3)
Cumulative effect of change in accounting
principle (0.1) 6.3
Other adjustments (15.7) 13.9
Increase in certain working capital components and
deferred taxes 224.0 3.9
Net cash provided by operating activities 509.4 88.5
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment additions (83.6) (40.6)
Proceeds from timber & timberland sales, net 81.5 102.1
Proceeds from asset sales 44.0 45.8
(Increase) decrease in restricted cash from asset
sales 37.1 (37.1)
Return of capital from unconsolidated subsidiary 365.8 -
Acquisition - (3.3)
Other investing activities, net (1.8) 4.8
-------- --------
Net cash provided by investing activities 443.0 71.7
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net payments under revolving credit facilities (32.0) (40.0)
Long term borrowings 0.4 17.1
Repayment of long-term debt (53.0) (49.7)
Sale of common stock under equity plans 19.2 -
Increase in restricted cash under LOCs (102.9) -
Other financing activities, net 2.9 (11.9)
-------- --------
Net cash used in financing activities (165.4) (84.5)
-------- --------
EFFECT OF EXCHANGE RATE ON CASH: 1.6 -
-------- --------
Net increase in cash and cash equivalents 788.6 75.7
Cash and cash equivalents at beginning of period 137.3 61.6
-------- --------
Cash and cash equivalents at end of period $ 925.9 $ 137.3
======== ========
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
SELECTED SEGMENT INFORMATION
(Dollar amounts in millions) (Unaudited)
Quarter Ended Year Ended
December 31, December 31,
--------------- -------------------
2003 2002 2003 2002
------- ------- --------- ---------
Net sales:
OSB $491.6 $170.7 $1,318.2 $ 727.3
Composite Wood Products 112.0 77.2 423.2 355.3
Plastic Building Products 40.0 31.2 196.5 152.0
Engineered Wood Products 82.6 60.1 302.2 263.0
Pulp - - - 1.3
Other 17.3 28.6 93.6 152.3
Less: Intersegment sales (9.7) (7.5) (33.5) (51.1)
------ ------ -------- --------
$733.8 $360.3 $2,300.2 $1,600.1
====== ====== ======== ========
Operating profit (loss):
OSB $254.3 $ 5.0 $ 502.9 $ 61.1
Composite Wood Products 17.8 7.1 61.3 45.1
Plastic Building Products (0.5) (0.4) 12.7 5.0
Engineered Wood Products 1.1 (1.7) (2.7) 5.2
Pulp (0.1) 0.2 (0.1) (2.0)
Other (4.6) 0.9 (3.8) 7.6
Other operating credits and
charges, net 28.9 (27.3) (2.2) (29.5)
Gain (loss) on sale or impairment
of long-lived assets 54.0 18.3 118.2 61.3
General corporate and other
expenses, net (30.8) (18.1) (102.0) (81.4)
Gain (loss) on early
extinguishment of debt - - (1.5) -
Interest income (expense), net (11.3) (14.9) (54.6) (63.0)
------ ------ -------- --------
Income (loss) before taxes,
minority interest
and equity in earnings of
unconsolidated affiliates $308.8 $(30.9) $ 528.2 $ 9.4
====== ====== ======== ========
LOUISIANA-PACIFIC CORPORATION AND SUBSIDIARIES
NOTES TO FINANCIAL DATA
(Dollar amounts in millions, except per share amounts) (Unaudited)
1. Results of operations for interim periods are not necessarily indicative of results to be expected for an entire year.
2. On May 8, 2002, LP announced that its board of directors had approved a plan to sell selected businesses and assets in order to significantly reduce LP's current debt. As revised in May 2003, the plan involves divesting LP's plywood, industrial panels, timber and timberlands, wholesale and distribution businesses and certain lumber mills. In accordance with Statement of Financial Accounting Standards (SFAS) No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," LP is required to account for the businesses sold or anticipated to be sold within one year as discontinued operations. Additionally, as a result of the planned divestitures, LP was required to modify its segment reporting under SFAS No. 131, "Disclosures about Segments of Enterprise and Related Information." This plan was substantially completed as of December 31, 2003.
3. Other Operating Charges and Credits, Net:
The major components of "Other operating charges and credits, net" in the Condensed Consolidated Statements Of Income for the quarter and year ended December 31 are reflected in the table below and are described in the paragraphs following the tables:
Quarter Ended December 31, 2003 2002
------------------- -------------------
Pre-tax After tax Pre-tax After tax
--------- --------- --------- ---------
Additions to product related
contingency reserves $ - $ - $ (27.2) $ (16.7)
Additions to environmental
contingency reserves - - (1.6) (1.0)
Insurance recoveries 29.3 18.0 - -
Gain on energy contract 0.7 0.4 - -
Gain on substantial
liquidation of an investment - - 3.1 1.9
Severance charges (1.1) (0.7) - -
Other - - (1.6) (1.0)
-------- -------- -------- --------
$ 28.9 $ 17.7 $ (27.3) $ (16.8)
======== ======== ======== ========
Year Ended December 31, 2003 2002
------------------- -------------------
Pre-tax After tax Pre-tax After tax
--------- --------- --------- ---------
Insurance recoveries $ 29.3 $ 18.0 $ 1.9 $ 1.2
Additions to product related
contingency reserves (6.7) (4.1) (27.2) (16.7)
Additions to environmental
contingency reserves (2.7) (1.7) (1.6) (1.0)
Additions to legal contingency
reserves - - (2.0) (1.2)
Loss on energy contract (4.4) (2.7) - -
Gain on substantial
liquidation of an investment - - 3.1 1.9
Loss related to assets and
liabilities transferred
under contractual arrangement (16.0) (9.8) - -
Severance charges (1.7) (1.0) (2.1) (1.3)
Other - - (1.6) (1.0)
-------- -------- -------- --------
$ (2.2) $ (1.3) $ (29.5) $ (18.1)
======== ======== ======== ========
In the first quarter of 2002, LP recorded a net gain of $1.9 million ($1.2 million after taxes, or $0.01 per diluted share) from business interruption insurance recoveries related to incidents at facilities that occurred in past years.
In the second quarter of 2002, LP recorded a loss of $1.5 million ($0.9 million after tax, or $.01 per diluted share) on severance accrued as part of the divestiture plan.
In the third quarter of 2002, LP recorded a loss of $0.6 million ($0.4 million after taxes, or $.00 per diluted share) on severance recorded as part of the divesture plan and a loss of $2.0 million ($1.2 million after taxes, or $.01 per diluted share) due to increase in litigation reserves.
In the fourth quarter of 2002, LP recorded an increase of $27.2 million ($16.7 million after taxes, or $0.16 per diluted share) in contingency reserves associated with an existing hardboard siding class action suit; an increase of $1.6 million ($1.0 million after taxes, or $0.01 per diluted share) in contingency reserves associated with environmental matters; a loss of $1.6 million ($1.0 million after taxes, or $0.01 per diluted share) associated with a sublease on LP's corporate headquarters and a gain of $3.1 million ($1.9 million after taxes, or $0.02 per diluted share) due to substantial liquidation of LP investment in a Chetwynd, British Columbia pulp mill.
In the second quarter of 2003, LP recorded a loss of $16.0 million ($9.8 million after taxes, or $0.09 per diluted share) related to assets and liabilities transferred under contractual arrangement due to the increase in a valuation allowance associated with notes receivable from Samoa Pacific; a loss of $6.7 million ($4.1 million after taxes, or $0.04 per diluted share) from increases in product related contingency reserves associated with the National OSB class action settlement and a loss of $2.7 million ($1.7 million after taxes, or $0.01 per diluted share) associated with environmental reserves at our Ketchikan Pulp Company operations.
In the third quarter of 2003, LP recorded a loss of $5.0 million ($3.1 million after taxes, or $0.03 per diluted share) related to an energy contract associated with Samoa Pacific and a loss of $0.7 million ($0.4 million after taxes, or $.00 per diluted share) on severance recorded as part of the divesture plan.
In the fourth quarter of 2003, LP recorded a gain of $29.3 million ($18.0 million after taxes, or $0.17 per share) related to insurance recoveries for environmental costs incurred in prior years; a gain of $0.7 million ($0.4 million after taxes, or $0.00 per diluted share) related to an energy contract associated with Samoa Pacific and a loss of $1.1 million ($0.7 million after taxes, or $.01 per diluted share) on severance recorded as part of the divesture and corporate relocation plans.
4. Gain (Loss) on Sale or Impairment of Long-Lived Assets:
The major components of "Gain (loss) on sale or impairment of long-lived assets" in the Condensed Consolidated Statements Of Income for the quarter and year ended December 31 are reflected in the tables below and are described in the paragraphs following the tables:
Quarter Ended December 31, 2003 2002
------------------- -------------------
Pre-tax After tax Pre-tax After tax
--------- --------- --------- ---------
Gain on sales of timber $ 54.7 $ 33.5 $ 16.2 $ 9.9
Gain on other long-lived
assets 0.9 0.6 2.1 1.3
Impairment charges on fixed
assets (1.6) (1.0) - -
-------- -------- -------- --------
$ 54.0 $ 33.1 $ 18.3 $ 11.2
======== ======== ======== ========
Year Ended December 31, 2003 2002
------------------- -------------------
Pre-tax After tax Pre-tax After tax
--------- --------- --------- ---------
Gain on sales of timber $ 117.9 $ 72.3 $ 73.8 $ 45.2
Gain on other long-lived
assets 1.9 1.2 5.7 3.5
Impairment charges on fixed
assets (1.6) (1.0) (18.2) (11.2)
-------- -------- -------- --------
$ 118.2 $ 72.5 $ 61.3 $ 37.5
======== ======== ======== ========
In the first quarter of 2002, LP recorded a loss of $1.6 million ($1.0 million after taxes, or $0.01 per diluted share) associated with impairment charges on assets held.
In the second quarter of 2002, LP recorded a loss of $1.3 million ($0.8 million after taxes, or $0.01 per diluted share) associated with impairment charges on assets held and a gain of $7.1 million ($4.3 million after taxes, or $0.04 per share) on the sale of certain assets.
In the third quarter of 2002, LP recorded a loss of $18.3 million ($11.2 million, or $0.11 per diluted share) associated with an impairment charge of $16.7 million of the purchase price of Forex allocated to a timber license associated with an OSB project in Quebec that LP announced cancellation of in September of 2002 as well as other associated assets; a gain of $57.6 million ($35.3 million, or $0.34 per diluted share) on the sale of various timberlands and a loss of $0.5 million on the sales of other assets.
In the fourth quarter of 2002, LP recorded a gain of $16.2 million ($9.9 million after taxes, or $.09 per diluted share) on the sales of various timberlands and a gain of $2.1 million ($1.3 million after taxes or $.01 per diluted share) on the sale of other assets.
In the first quarter of 2003, LP recorded a gain of $12.5 million ($7.7 million after taxes, or $0.07 per diluted share) associated with the sale of a portion of LP's timberlands as part of LP's divestiture plan.
In the second quarter of 2003, LP recorded a gain of $29.3 million ($18.0 million after taxes, or $0.17 per diluted share) associated with the sale of a portion of LP's timberlands as part of LP's divestiture plan and a loss of $0.1 million ($0.1 million after taxes, or $0.01 per diluted share) associated with the sale of certain other assets.
In the third quarter of 2003, LP recorded a gain of $22.1 million ($13.5 million after taxes, or $0.13 per diluted share) associated with the sale of a portion of LP's timberlands as part of LP's divestiture plan and a gain of $0.4 million ($0.2 million after taxes, or $0.00 per diluted share) associated with the sale of certain other assets.
In the fourth quarter of 2003, LP recorded a gain of $54.7 million ($33.5 million after taxes, or $0.32 per diluted share) associated with the sale of a portion of LP's timberlands as part of LP's divestiture plan; a loss of $1.6 million ($1.0 million after taxes, or $0.01 per diluted share) associated with impairment charges on certain assets and a gain of $0.9 million ($0.6 million after taxes, or $0.01 per diluted share) associated with the sale of certain other assets.
5. Cumulative Effect of Change in Accounting Principles:
LP adopted Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations," as of January 1, 2003. This statement addresses the retirement of long-lived assets and the associated retirement costs. Under this statement, we will record both an initial asset and a liability for the present value of estimated costs of legal obligations associated with the retirement of long-lived assets. These initial assets will be depreciated over the expected useful life of the asset. Upon adoption of this statement, we changed our accounting for landfill closures, reforestation obligations associated with certain timber licenses in Canada and other assets. Implementation of this standard resulted in income of $0.2 million (or $0.1 million after taxes) recorded as a "cumulative effect of change in accounting principle" as of January 1, 2003.
LP adopted Statement of Financial Accounting Standards No. 142, "Goodwill and other Intangible Assets," as of January 1, 2002. As of January 1, 2002, LP discontinued amortization of goodwill. LP has determined that $6.3 million of goodwill recorded in the Engineered Wood Products business was impaired as of January 1, 2002 and this amount is recorded net of income tax effects as a "cumulative effect of change in accounting principle" as of January 1, 2002.
LOUISIANA-PACIFIC CORPORATION
SUMMARY OF PRODUCTION VOLUMES
Quarter Ended Year Ended
December 31, December 31,
--------------- ---------------
2003 2002 2003 2002
------- ------- ------- -------
Oriented strand board, million square
feet 3/8" basis 1,485 1,208 5,525 5,123
Wood-based siding, million square feet
3/8" basis 209 194 807 786
Engineered I-Joist, million lineal
feet 25 19 91 84
Laminated veneer lumber (LVL),
thousand cubic feet 2,720 1,985 10,069 8,394
Composite Decking, thousand lineal
feet 8,732 6,882 32,119 21,991
Vinyl Siding, squares 731 506 2,792 2,419
CONTACT: Louisiana-Pacific Corporation David Dugan, 503-821-5285 (Media Relations) Bill Hebert, 503-821-5100 (Investor Relations)
SOURCE: Louisiana-Pacific Corporation