Company: LPX
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000060519-25-000005
Chunk: 93

Company: LOUISIANA-PACIFIC CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 93
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 provide an implicit rate, we used our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The lease term for all our leases includes the non-cancellable period of the lease plus any additional periods covered by either an option to extend (or not to terminate) the lease that we are reasonably certain to exercise, or an option to extend (or not to terminate) the lease controlled by the lessor.As of December 31, 2024, our weighted average discount rate was 3%, and our weighted average remaining lease term was five years for operating leases.

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Our operating leases are included in our Consolidated Balance Sheets and Consolidated Statements of Income as follows (dollars in millions):ClassificationDecember 31,Consolidated Balance Sheet20242023Assets:Operating lease assetsOperating lease assets, net$25 $25 Total lease assets$25 $25 Liabilities:CurrentOperating Accounts payable and accrued liabilities$8 $6 Non-currentOperating Non-current operating lease liabilities24 25 Total lease liabilities$32 $32 For the years ended December 31, 2024 and 2023, we incurred operating lease expenses of $8 million and $10 million, respectively, included within costs of sales and selling, general and administrative expenses. We made cash payments of $7 million and $10 million during the years ended December 31, 2024 and 2023, respectively, related to our operating leases. We further incurred operating lease expense of $5 million and $4 million related to short-term rent expense for the years ended December 31, 2024 and 2023, respectively. We obtained right of use (ROU) assets in exchange for new operating lease liabilities of $7 million and $4 million for the years ended December 31, 2024 and 2023, respectively. We did not enter into any financing leases during 2024 or 2023. In connection with the Entekra shutdown described in "Note 7 - Business Exit Credits and Charges,” we terminated the related lease arrangements and derecognized the associated operating lease assets and liabilities, resulting in a non-cash pre-tax impairment charge of $3 million for the year ended December 31, 2023.The following table sets forth the minimum lease payments that are expected to be made in each of the years indicated (dollars in millions):Operating Leases2025$9 20268