Company: LPX
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000060519-25-000005
Chunk: 91

Company: LOUISIANA-PACIFIC CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 91
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 we recorded a deferred tax liability of $21 million related to the taxes expected to be imposed upon the repatriation of such foreign earnings to the United States. As of December 31, 2024, the deferred tax liability related to unremitted foreign earnings was $19 million. Over the last several years, the Organization for Economic Cooperation and Development (OECD) has developed an Inclusive Framework on Base Erosion and Profit Shifting including Pillar Two model rules applicable to large multinational corporations which would establish a global per-country minimum tax of 15%. While the United States has not enacted legislation to adopt Pillar Two and it is uncertain if it will do so in the future, certain countries in which we operate have enacted such legislation. Specifically, the Canadian government enacted legislation in 2024 implementing aspects of the OECD’s minimum tax rules effective in the 2024 fiscal year and released draft legislation proposed to implement further aspects effective for the 2025 fiscal year. In addition, in 2024, the Brazilian National Congress approved legislation implementing a tax measure to take effect in the 2025 fiscal year that is largely aligned with certain aspects of the OECD’s minimum tax rules under the Pillar Two framework. No other jurisdictions in which LP operates have enacted Pillar Two legislation at this time. At this time, we do not expect Pillar Two legislation to have a material impact on our effective tax rate or our consolidated results of operations, financial position or cash flows. The Company will continue to monitor future developments to determine any potential impact in the countries in which we operate.Reconciliation of the U.S. Federal Statutory Rate to the Effective RateReconciliation of the U.S. federal statutory tax rate to the total effective tax rates from continuing operations (dollars in millions): Years Ended December 31, 202420232022Amount ($)Percent (%)Amount ($)Percent (%)Amount ($)Percent (%)U.S. Federal tax rate$118 21 %$53 21 %$243 21 %State and local income taxes13 2 8 3 34 3 Effect of foreign tax rates9 2 3 1 9 1 Uncertain tax positions(2)— 7 3 (2)— Unremitted foreign earnings1 — 25 10 — — Non deductible compensation3 1 6 2 6 — Tax credits(5)(1)(5)(2)(4)— Prior year changes in tax laws and