Forests of the southeastern United States are dominated by a relatively small number of conifer species. However, many of these forests also have a hardwood component composed of a wide variety of species that are found in all canopy positions. The presence or absence of hardwood species and their position in the canopy often dictates management activities such as thinning or prescribed burning. In addition, the characteristics of the under- and mid-story layers, often dominated by hardwood species, are key factors when assessing suitable habitat for threatened and endangered species such as the Red Cockaded Woodpecker (Picoides borealis) (RCW), making information describing the hardwood component important to forest managers. General classification of cover types using LIDAR data has been reported (Song et al. 2002, Brennan and Webster 2006) but most efforts focusing on the identification of individual species or species groups rely on some type of imagery to provide more complete spectral information for the study area. Brandtberg (2007) found that use of intensity data significantly improved LIDAR detection and classification of three leaf-off deciduous eastern species: oaks (Quercus spp.), red maple (Acer rubrum L.), and yellow poplar (Liriodendron tulipifera L.). Our primary objective was to determine the proportion of hardwood species present in the canopy using only the LIDAR point data and derived products. However, the presence of several hardwood species that retain their foliage through the winter months complicated our analyses. We present two classification approaches. The first identifies areas containing hardwood and softwood (conifer) species (H/S) and the second identifies vegetation with foliage absent or present (FA/FP) at the time of the LIDAR data acquisition. The classification results were used to develop predictor variables for forest inventory models. The ability to incorporate the proportion of hardwood and softwood was important to the inventory as well as habitat assessments for the RCW.