Company: LPX
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0000060519-25-000035
Chunk: 11

Company: LOUISIANA-PACIFIC CORP
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 11
---
 nature, magnitude, and timing of required investigation, remediation, and/or monitoring activities, as well as the probable costs associated with those activities. In some cases, estimates also consider the obligation, willingness, or ability of third parties to bear a proportionate or allocated share of the costs.

Due to the numerous uncertainties and variables associated with these assumptions and judgments-as well as the potential effects of changes in governmental regulations and environmental technologies-the precision and reliability of the resulting estimates are subject to substantial uncertainty. Estimated exposure to environmental loss contingencies is regularly monitored, and estimates may be revised significantly as additional information becomes available.

Other Proceedings

From time to time, the Company and its subsidiaries are parties to certain legal proceedings arising in our ordinary course of business. Based on currently available information, management does not believe that the resolution of such proceedings could reasonably be expected to have a material adverse effect on the Company’s financial position, results of operations, cash flows, or liquidity.

NOTE 11. PRODUCT WARRANTIES

Warranties are offered on the sale of most of our products, and an accrual is recorded for estimated future claims. These accruals are based upon historical experience and management’s estimate of future claim levels. The activity in the warranty reserves is summarized in the following table for the three and nine months ended September 30, 2025, and 2024, (dollar amounts in millions):

                                                                                                   Three Months Ended September 30,                Nine Months Ended September 30,            
                                                                                                   2025                                  2024                                 2025      2024  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Beginning balance                                                                                $                                        $                                    $      $     
  Change in warranty provision                                                                     1                                     ( 1)                                    1      —     
  Payments made                                                                                    —                                     ( 1)                                 ( 1)      ( 1)  
  Total warranty reserves                                                                          6                                        7                                    6      7     
  Current portion of warranty reserves (included in accounts payable and accrued liabilities)      ( 2)                                  ( 2)                                 ( 2)      ( 2)  
  Long-term portion of warranty reserves (included in other long-term liabilities)                 $                                        $                                    $      $     

Warranty and other product-related claims continue to be monitored by management, and as of September 30, 2025, the warranty reserve balances associated with these matters are considered adequate to cover