Company: LPX
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000060519-25-000005
Chunk: 77

Company: LOUISIANA-PACIFIC CORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 77
---
 Finished products220 217 Total Inventories$357 $378 Timber and TimberlandsTimber and timberlands are comprised of timber deeds and allocations of the purchase price to Canadian timber harvesting licenses. Timber deeds are transactions in which we purchase timber but not the underlying land. The cost of timber deeds is capitalized in timber and timberlands and charged to the cost of timber harvested as the volume is removed. Timber that has been severed but has not yet been delivered to a facility is included in timber and timberlands. As of December 31, 2024, and 2023, we had timber and timberlands of $6 million and $7 million, respectively. 

54

Timber licenses have a life of 20 to 25 years. These licenses are amortized on a straight-line basis over the life of the facilities. As of December 31, 2024 and 2023, we had timber licenses of $23 million and $25 million, respectively. Certain Canadian timber harvesting licenses also include future requirements for reforestation. The fair value of the future estimated reforestation obligation is accrued and recognized in Cost of sales based on the volume of timber harvested; fair value is determined by discounting the estimated future cash flows using a credit adjusted risk-free rate. Subsequent changes to the fair value resulting from the passage of time and revisions to fair value calculations are recognized in earnings as they occur.Property, Plant, and EquipmentProperty, plant, and equipment, including capitalized interest, are recorded at cost and consisted of the following (dollars in millions):December 31,20242023Land, land improvements, and logging roads, net of road amortization$217 $212 Buildings504 493 Machinery and equipment2,472 2,352 Construction in progress248 236 3,441 3,293 Accumulated depreciation(1,849)(1,753)Property, plant, and equipment, net$1,592 $1,540 Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, which typically range from 5 to 20 years for buildings and land improvements, 3 to 15 years for equipment, and the shorter of the lease term or estimated useful lives for leasehold improvements. Depreciation and amortization expense on property, plant, and equipment was included in our Consolidated Statements of Income as noted below (dollars in millions):Year Ended December 31,202420232