Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 15, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Owens Corning | ' |
Entity Central Index Key | '0001370946 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Entity Well Known Seasoned Issuer | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Amendment Flag | 'false | ' |
Entity Common Stock Shares Outstanding | ' | 117,580,044 |
CONSOLIDATED_STATEMENTS_OF_EAR
CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
NET SALES | $1,382 | $1,320 | $4,015 | $4,017 |
COST OF SALES | 1,131 | 1,067 | 3,282 | 3,284 |
Gross margin | 251 | 253 | 733 | 733 |
OPERATING EXPENSES | ' | ' | ' | ' |
Marketing and administrative expenses | 110 | 128 | 372 | 395 |
Science and technology expenses | 18 | 19 | 57 | 57 |
Charges related to cost reduction actions | 19 | 6 | 31 | 8 |
Other (income) expenses, net | -3 | -6 | -15 | -8 |
Total operating expenses | 144 | 147 | 445 | 452 |
EARNINGS BEFORE INTEREST AND TAXES | 107 | 106 | 288 | 281 |
Interest expense, net | 28 | 29 | 86 | 87 |
EARNINGS BEFORE TAXES | 79 | 77 | 202 | 194 |
Less: Income tax expense | 27 | 26 | 9 | 71 |
Equity in net earnings of affiliates | 0 | 0 | 1 | 0 |
NET EARNINGS | 52 | 51 | 194 | 123 |
Less: Net earnings attributable to noncontrolling interests | 0 | 0 | 1 | 1 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $52 | $51 | $193 | $122 |
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS | ' | ' | ' | ' |
Basic (in dollars per share) | $0.44 | $0.43 | $1.64 | $1.03 |
Diluted (in dollars per share) | $0.44 | $0.43 | $1.63 | $1.02 |
Dividend (in dollars per share) | $0.16 | $0 | $0.48 | $0 |
WEIGHTED AVERAGE COMMON SHARES | ' | ' | ' | ' |
Basic (in shares) | 117.4 | 118 | 117.5 | 118.4 |
Diluted (in shares) | 118.1 | 118.8 | 118.3 | 119.3 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
NET EARNINGS | $52 | $51 | $194 | $123 |
Currency translation adjustment | -59 | 15 | -64 | -30 |
Pension and other postretirement adjustment (net of tax of $(1), $(3), $(2) and $(0) for the three and nine months ended September 30, 2014 and 2013, respectively) | 4 | 2 | 6 | 11 |
Deferred loss on hedging (net of tax of $0, $1, $0 and $(1) for the three and nine months ended September 30, 2014 and 2013, respectively) | 0 | 0 | -1 | 0 |
COMPREHENSIVE EARNINGS | -3 | 68 | 135 | 104 |
Less: Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 1 | 1 |
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | ($3) | $68 | $134 | $103 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Pension and other postretirement tax | ($1) | ($3) | ($2) | $0 |
Deferred loss on hedging tax | $0 | $1 | $0 | ($1) |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||||
CURRENT ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | $51 | $57 | $51 | $55 | ||
Receivables, less allowances of $13 at Sep. 30, 2014, and $14 at Dec. 31, 2013 | 904 | 683 | ' | ' | ||
Inventories | 823 | 810 | ' | ' | ||
Assets held for sale – current | 16 | 29 | ' | ' | ||
Other current assets | 223 | 269 | ' | ' | ||
Total current assets | 2,017 | 1,848 | ' | ' | ||
Property, plant and equipment, net | 2,892 | 2,932 | ' | ' | ||
Goodwill | 1,168 | 1,166 | ' | ' | ||
Intangible assets | 1,025 | 1,040 | ' | ' | ||
Deferred income taxes | 372 | 436 | ' | ' | ||
Other non-current assets | 221 | 225 | ' | ' | ||
TOTAL ASSETS | 7,695 | 7,647 | ' | ' | ||
CURRENT LIABILITIES | ' | ' | ' | ' | ||
Accounts payable and accrued liabilities | 933 | 988 | ' | ' | ||
Short-term debt | 22 | 1 | ' | ' | ||
Long-term debt – current portion | 4 | 3 | ' | ' | ||
Total current liabilities | 959 | 992 | ' | ' | ||
Long-term debt, net of current portion | 2,171 | 2,024 | ' | ' | ||
Pension plan liability | 285 | 336 | ' | ' | ||
Other employee benefits liability | 230 | 242 | ' | ' | ||
Deferred income taxes | 20 | 23 | ' | ' | ||
Other liabilities | 133 | 200 | ' | ' | ||
OWENS CORNING STOCKHOLDERS’ EQUITY | ' | ' | ' | ' | ||
Preferred stock, par value $0.01 per share (a) | 0 | [1] | 0 | [1] | ' | ' |
Common stock, par value $0.01 per share (b) | 1 | [2] | 1 | [2] | ' | ' |
Additional paid in capital | 3,947 | 3,938 | ' | ' | ||
Accumulated earnings | 791 | 655 | ' | ' | ||
Accumulated other comprehensive deficit | -356 | -297 | -382 | -364 | ||
Cost of common stock in treasury (c) | -524 | [3] | -504 | [3] | ' | ' |
Total Owens Corning stockholders’ equity | 3,859 | 3,793 | ' | ' | ||
Noncontrolling interests | 38 | 37 | ' | ' | ||
Total equity | 3,897 | 3,830 | ' | ' | ||
TOTAL LIABILITIES AND EQUITY | $7,695 | $7,647 | ' | ' | ||
[1] | 10 shares authorized; none issued or outstanding at September 30, 2014, and December 31, 2013 | |||||
[2] | 400 shares authorized; 135.5 issued and 117.6 outstanding at September 30, 2014; 135.5 issued and 117.8 outstanding at December 31, 2013 | |||||
[3] | 17.9 shares at September 30, 2014, and 17.7 shares at December 31, 2013 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $13 | $14 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized | 400,000,000 | 400,000,000 |
Common stock, issued | 135,500,000 | 135,500,000 |
Common stock, outstanding | 117,600,000 | 117,800,000 |
Treasury stock shares | 17,900,000 | 17,700,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ' | ' |
NET EARNINGS | $194 | $123 |
Adjustments to reconcile net earnings to cash used for operating activities: | ' | ' |
Depreciation and amortization | 229 | 235 |
Gain on sale of fixed assets | -50 | -6 |
Impairment loss on European Stone Business | 20 | 0 |
Deferred income taxes | -4 | 57 |
Provision for pension and other employee benefits liabilities | 14 | 27 |
Stock-based compensation expense | 21 | 21 |
Other non-cash | -28 | -13 |
Change in working capital | -257 | -214 |
Pension fund contribution | -51 | -30 |
Payments for other employee benefits liabilities | -16 | -16 |
Other | -10 | -26 |
Net cash flow provided by operating activities | 62 | 158 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ' | ' |
Additions to plant and equipment | -216 | -199 |
Proceeds from the sale of assets or affiliates, net | 65 | 17 |
Investment in subsidiaries and affiliates, net of cash acquired | -12 | -62 |
Proceeds from Hurricane Sandy insurance claims | 0 | 26 |
Derivative settlement | 1 | 0 |
Purchases of alloy | -25 | -15 |
Proceeds from sale of alloy | 25 | 16 |
Net cash flow used for investing activities | -162 | -217 |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ' | ' |
Proceeds from senior revolving credit and receivables securitization facilities | 1,068 | 1,063 |
Payments on senior revolving credit and receivables securitization facilities | -919 | -957 |
Payments on long-term debt | -1 | -1 |
Net increase in short-term debt | 21 | 3 |
Cash dividends paid | -37 | 0 |
Purchases of treasury stock | -44 | -63 |
Other | 7 | 12 |
Net cash flow provided by financing activities | 95 | 57 |
Effect of exchange rate changes on cash | -1 | -2 |
Net decrease in cash and cash equivalents | -6 | -4 |
Cash and cash equivalents at beginning of period | 57 | 55 |
Cash and cash equivalents at end of period | $51 | $51 |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2014 | |
General Disclosure [Abstract] | ' |
GENERAL | ' |
GENERAL | |
Unless the context requires otherwise, the terms “Owens Corning,” “Company,” “we” and “our” in this report refer to Owens Corning, a Delaware corporation, and its subsidiaries. | |
The Consolidated Financial Statements included in this report are unaudited, pursuant to certain rules and regulations of the Securities and Exchange Commission, and include, in the opinion of the Company, adjustments necessary for a fair statement of the results for the periods indicated, which, however, are not necessarily indicative of results which may be expected for the full year. The December 31, 2013, balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States (U.S.). In connection with the Consolidated Financial Statements and Notes included in this report, reference is made to the Consolidated Financial Statements and Notes contained in the Company’s 2013 annual report on Form 10-K. Certain reclassifications have been made to the periods presented for 2013 to conform to the classifications used in the periods presented for 2014. | |
During the three and nine months ended September 30, 2014, the Company recorded additional net pre-tax income of $7 million ($5 million after tax expense) and net pre-tax expense of $1 million ($1 million after tax income), respectively, for the correction of errors related to prior periods. The effect was not material to the current or any previously issued financial statements and primarily resulted from the improper election of the normal purchases normal sales ("NPNS") derivative scope exception related to a fixed quantity energy contract in Brazil that was entered into on December 18, 2013. The contract contained an annual inflation index price adjustment that was not clearly and closely related to the underlying commodity being purchased and thus disqualified the contract from the NPNS exception. The total net unrealized fair market value gains related to the contract would have been recorded in Other (income) expenses, net on the Consolidated Statements of Earnings and the total historical impact was $(1) million, $(8) million, and $2 million for each of the three months ended December 31, 2013, March 31, 2014, and June 30, 2014, respectively. | |
In the second quarter of 2014, the Company determined that cash flows from operating activities and cash flows used in financing activities were each overstated by $5 million and $11 million for the periods ended September 30, 2013 and December 31, 2013, respectively, due to the misclassification of non-cash debt fair value hedge adjustments. The effect of the misclassification was not material to any previously issued financial statements. The Consolidated Statement of Cash Flows for the nine months ended September 30, 2013 has been revised to reduce cash flows from operating activities and cash flows used in financing activities by $5 million. Cash flow information for the period ended December 31, 2013 will be revised the next time comparative Consolidated Statements of Cash Flows are filed. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
SEGEMENT INFORMATION | ' | ||||||||||||
SEGMENT INFORMATION | |||||||||||||
The Company has two reportable segments: Composites and Building Materials. Accounting policies for the segments are the same as those for the Company. The Company’s reportable segments are defined as follows: | |||||||||||||
Composites – comprised of our Reinforcements and Downstream businesses. Within the Reinforcements business, the Company manufactures, fabricates and sells glass reinforcements in the form of fiber. Within the Downstream business, the Company manufactures and sells glass fiber products in the form of fabrics, mat, veil and other specialized products. | |||||||||||||
Building Materials – comprised of our Insulation and Roofing businesses. Within the Insulation business, the Company manufactures and sells fiberglass insulation into residential, commercial, industrial and other markets for both thermal and acoustical applications. It also manufactures and sells glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, and foam insulation used in above- and below-grade construction applications. Within the Roofing business, the Company manufactures and sells residential roofing shingles, roofing system components and oxidized asphalt materials used in residential and commercial construction and specialty applications. | |||||||||||||
NET SALES | |||||||||||||
The following table summarizes our net sales by segment, geographic region and product group (in millions). External customer sales are attributed to geographic region based upon the location from which the product is shipped to the external customer. | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Reportable Segments | |||||||||||||
Composites | $ | 489 | $ | 453 | $ | 1,471 | $ | 1,384 | |||||
Building Materials | 928 | 902 | 2,664 | 2,762 | |||||||||
Total reportable segments | 1,417 | 1,355 | 4,135 | 4,146 | |||||||||
Corporate eliminations | (35 | ) | (35 | ) | (120 | ) | (129 | ) | |||||
NET SALES | $ | 1,382 | $ | 1,320 | $ | 4,015 | $ | 4,017 | |||||
External Customer Sales by Geographic Region | |||||||||||||
United States | $ | 938 | $ | 909 | $ | 2,726 | $ | 2,797 | |||||
Europe | 142 | 135 | 451 | 412 | |||||||||
Asia Pacific | 168 | 156 | 474 | 455 | |||||||||
Other | 134 | 120 | 364 | 353 | |||||||||
NET SALES | $ | 1,382 | $ | 1,320 | $ | 4,015 | $ | 4,017 | |||||
Sales by Product Group | |||||||||||||
Composites | $ | 489 | $ | 453 | $ | 1,471 | $ | 1,384 | |||||
Insulation | 454 | 431 | 1,256 | 1,176 | |||||||||
Roofing | 474 | 471 | 1,408 | 1,586 | |||||||||
Corporate Eliminations | (35 | ) | (35 | ) | (120 | ) | (129 | ) | |||||
NET SALES | $ | 1,382 | $ | 1,320 | $ | 4,015 | $ | 4,017 | |||||
EARNINGS BEFORE INTEREST AND TAXES | |||||||||||||
Earnings before interest and taxes (“EBIT”) by segment consist of net sales less related costs and expenses and are presented on a basis that is used internally for evaluating segment performance. Certain items, such as general corporate expenses or income and certain other expense or income items, are excluded from the internal evaluation of segment performance. Accordingly, these items are not reflected in EBIT for our reportable segments and are included in the Corporate, Other and Eliminations category. | |||||||||||||
The following table summarizes EBIT by segment (in millions): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Reportable Segments | |||||||||||||
Composites | $ | 32 | $ | 21 | $ | 96 | $ | 62 | |||||
Building Materials | 101 | 114 | 262 | 332 | |||||||||
Total reportable segments | $ | 133 | $ | 135 | $ | 358 | $ | 394 | |||||
Corporate, Other and Eliminations | |||||||||||||
Charges related to cost reduction actions and related items (a) | $ | (21 | ) | $ | (11 | ) | $ | (33 | ) | $ | (23 | ) | |
Net loss on sale of European Stone Business | (1 | ) | — | (20 | ) | — | |||||||
Impairment loss on Alcala, Spain facility held for sale | (3 | ) | — | (3 | ) | — | |||||||
Gain on sale of Hangzhou, China facility | — | — | 45 | — | |||||||||
Net loss related to Hurricane Sandy | — | (2 | ) | (6 | ) | (16 | ) | ||||||
General corporate expense and other | (1 | ) | (16 | ) | (53 | ) | (74 | ) | |||||
EBIT | $ | 107 | $ | 106 | $ | 288 | $ | 281 | |||||
(a) | For the three months ended September 30, 2014 and 2013, includes $19 million and $6 million, respectively, of charges related to cost reduction actions and $2 million and $5 million, respectively, of other related items. For the nine months ended September 30, 2014 and 2013, includes $31 million and $8 million, respectively, of charges related to cost reduction actions and $2 million and $15 million, respectively, of other related items. |
INVENTORIES
INVENTORIES | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Inventory, Net [Abstract] | ' | ||||||
INVENTORIES | ' | ||||||
INVENTORIES | |||||||
Inventories consist of the following (in millions): | |||||||
30-Sep-14 | 31-Dec-13 | ||||||
Finished goods | $ | 582 | $ | 580 | |||
Materials and supplies | 241 | 230 | |||||
Total inventories | $ | 823 | $ | 810 | |||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ' | |||||||||||||
DERIVATIVE FINANCIAL INSTRUMENTS | ||||||||||||||
The Company is exposed to, among other risks, the impact of changes in commodity prices, foreign currency exchange rates, and interest rates in the normal course of business. The Company’s risk management program is designed to manage the exposure and volatility arising from these risks, and utilizes derivative financial instruments to offset a portion of these risks. The Company uses derivative financial instruments only to the extent necessary to hedge identified business risks, and does not enter into such transactions for trading purposes. | ||||||||||||||
The Company generally does not require collateral or other security with counterparties to these financial instruments and is therefore subject to credit risk in the event of nonperformance; however, the Company monitors credit risk and currently does not anticipate nonperformance by other parties. Contracts with counterparties generally contain right of offset provisions. These provisions effectively reduce the Company’s exposure to credit risk in situations where the Company has gain and loss positions outstanding with a single counterparty. It is the Company’s policy to offset on the Consolidated Balance Sheets the amounts recognized for derivative instruments with any cash collateral arising from derivative instruments executed with the same counterparty under a master netting agreement. As of September 30, 2014, and December 31, 2013, the Company did not have any amounts on deposit with any of its counterparties, nor did any of its counterparties have any amounts on deposit with the Company. | ||||||||||||||
The following table presents the fair value of derivatives and hedging instruments and the respective location on the Consolidated Balance Sheets (in millions): | ||||||||||||||
Fair Value at | ||||||||||||||
Location | 30-Sep-14 | 31-Dec-13 | ||||||||||||
Derivative assets designated as hedging instruments: | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Natural gas, electricity and foreign exchange contracts | Other current assets | $ | — | $ | 1 | |||||||||
Amount of gain recognized in Other comprehensive income (OCI) (effective portion) | OCI | $ | — | $ | 1 | |||||||||
Fair value hedges: | ||||||||||||||
Interest rate swaps | Other non-current assets | $ | 1 | $ | — | |||||||||
Derivative liabilities designated as hedging instruments: | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Natural gas and electricity | Accounts payable and | $ | 1 | $ | — | |||||||||
accrued liabilities | ||||||||||||||
Amount of loss recognized in OCI (effective portion) | OCI | $ | 1 | $ | — | |||||||||
Fair value hedges: | ||||||||||||||
Interest rate swaps | Other liabilities | $ | — | $ | 3 | |||||||||
Derivative assets not designated as hedging instruments: | ||||||||||||||
Electricity and foreign exchange contracts | Other current assets | $ | 8 | $ | — | |||||||||
Derivative liabilities not designated as hedging instruments: | ||||||||||||||
Foreign exchange contracts | Accounts payable and | $ | 2 | $ | 1 | |||||||||
accrued liabilities | ||||||||||||||
The following table presents the impact and respective location of derivative activities on the Consolidated Statements of Earnings (in millions): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
Location | 2014 | 2013 | 2014 | 2013 | ||||||||||
Derivative activity designated as hedging instruments: | ||||||||||||||
Natural gas and electricity: | ||||||||||||||
Amount of loss reclassified from OCI into earnings (effective portion) | Cost of sales | $ | 1 | $ | 1 | $ | — | $ | — | |||||
Interest rate swaps: | ||||||||||||||
Amount of gain recognized in earnings | Interest expense | $ | (1 | ) | $ | — | $ | — | $ | — | ||||
Derivative activity not designated as hedging instruments: | ||||||||||||||
Natural gas and electricity: | ||||||||||||||
Amount of (gain) loss recognized in earnings | Other (income) | $ | (5 | ) | $ | — | $ | (5 | ) | $ | — | |||
expenses, net | ||||||||||||||
Foreign currency exchange contract: | ||||||||||||||
Amount of loss recognized in earnings (a) | Other (income) | $ | — | $ | 1 | $ | 1 | $ | 12 | |||||
expenses, net | ||||||||||||||
(a) | Losses related to foreign currency derivatives were substantially offset by net revaluation impacts on foreign denominated balance sheet exposures, which were also recorded in other (income) expenses, net. | |||||||||||||
Cash Flow Hedges | ||||||||||||||
The Company uses forward and swap contracts, which qualify as cash flow hedges, to manage forecasted exposure to changes in foreign currency rates and commodity prices. The effective portion of the change in the fair value of cash flow hedges is deferred in accumulated OCI and is subsequently recognized in Cost of Sales on the Consolidated Statements of Earnings for commodity hedges, when the hedged item impacts earnings. Changes in the fair value of derivative assets and liabilities designated as hedging instruments are shown in Other within operating activities on the Consolidated Statements of Cash Flows. Any portion of the change in fair value of derivatives designated as hedging instruments that is determined to be ineffective is recorded in Other (income) expenses, net on the Consolidated Statements of Earnings. | ||||||||||||||
The Company currently has natural gas derivatives designated as hedging instruments that mature within 15 months. The Company’s policy for natural gas exposures is to hedge up to 75% of its total forecasted exposures for the next two months, up to 50% of its total forecasted exposures for the following four months, and lesser amounts for the remaining periods. Based on market conditions, approved variation from the standard policy may occur. The Company performs an analysis for effectiveness of its derivatives designated as hedging instruments at the end of each quarter based on the terms of the contract and the underlying item being hedged. | ||||||||||||||
As of September 30, 2014, $1 million of losses included in accumulated OCI on the Consolidated Balance Sheets relate to contracts that are expected to impact earnings during the next 12 months. Transactions and events that are expected to occur over the next 12 months that will necessitate recognizing these deferred amounts include the recognition of the hedged item through earnings. | ||||||||||||||
Fair Value Hedges | ||||||||||||||
The Company manages its interest rate exposure by balancing the mixture of its fixed and variable rate instruments through interest rate swaps. The swaps are carried at fair value and recorded as other assets or liabilities, with the offset to long-term debt on the Consolidated Balance Sheets. Changes in the fair value of these swaps and that of the related debt are recorded in Interest expense, net on the Consolidated Statements of Earnings. | ||||||||||||||
Other Derivatives | ||||||||||||||
The Company uses forward currency exchange contracts to manage existing exposures to foreign exchange risk related to assets and liabilities recorded on the Consolidated Balance Sheets. Gains and losses resulting from the changes in fair value of these instruments are recorded in Other (income) expenses, net on the Consolidated Statements of Earnings. | ||||||||||||||
As discussed in Note 1, the Company currently has fixed quantity energy contracts in Brazil that contain an annual inflation index price adjustment that is not clearly and closely related to the underlying commodity being purchased and thus are accounted for as trading derivatives. Gains and losses resulting from the changes in fair value of these contracts are recorded in Other (income) expenses, net on the Consolidated Statements of Earnings. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | |||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||||||||||||
Intangible assets and goodwill consist of the following (in millions): | ||||||||||||
30-Sep-14 | Weighted | Gross | Accumulated | Net Carrying | ||||||||
Average | Carrying | Amortization | Amount | |||||||||
Useful Life | Amount | |||||||||||
Amortizable intangible assets: | ||||||||||||
Customer relationships | 19 | $ | 172 | $ | (69 | ) | $ | 103 | ||||
Technology | 20 | 193 | (81 | ) | 112 | |||||||
Franchise and other agreements | 11 | 42 | (18 | ) | 24 | |||||||
Indefinite-lived intangible assets: | ||||||||||||
Trademarks | 786 | — | 786 | |||||||||
Total intangible assets | $ | 1,193 | $ | (168 | ) | $ | 1,025 | |||||
Goodwill | $ | 1,168 | ||||||||||
31-Dec-13 | Weighted | Gross | Accumulated | Net Carrying | ||||||||
Average | Carrying | Amortization | Amount | |||||||||
Useful Life | Amount | |||||||||||
Amortizable intangible assets: | ||||||||||||
Customer relationships | 19 | $ | 181 | $ | (68 | ) | $ | 113 | ||||
Technology | 20 | 194 | (74 | ) | 120 | |||||||
Franchise and other agreements | 14 | 37 | (16 | ) | 21 | |||||||
Indefinite-lived intangible assets: | ||||||||||||
Trademarks | 786 | — | 786 | |||||||||
Total intangible assets | $ | 1,198 | $ | (158 | ) | $ | 1,040 | |||||
Goodwill | $ | 1,166 | ||||||||||
The changes in the net carrying amount of goodwill by segment are as follows (in millions): | ||||||||||||
Composites | Building Materials | Total | ||||||||||
Balance as of December 31, 2013 | $ | 57 | $ | 1,109 | $ | 1,166 | ||||||
Acquisitions (see Note 7) | — | 2 | 2 | |||||||||
Balance as of September 30, 2014 | $ | 57 | $ | 1,111 | $ | 1,168 | ||||||
Other Intangible Assets | ||||||||||||
The Company expects the ongoing amortization expense for amortizable intangible assets to be approximately $22 million in each of the next five fiscal years. The Company’s future cash flows are not materially impacted by its ability to extend or renew agreements related to our amortizable intangible assets. | ||||||||||||
Goodwill | ||||||||||||
The Company tests goodwill and indefinite-lived intangible assets for impairment during the fourth quarter of each year, or more frequently should circumstances change or events occur that would more likely than not reduce the fair value of a reporting unit below its carrying amount. No testing was deemed necessary in the third quarter of 2014. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
PROPERTY, PLANT AND EQUIPTMENT | ' | ||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||
Property, plant and equipment consist of the following (in millions): | |||||||
September 30, | 31-Dec-13 | ||||||
2014 | |||||||
Land | $ | 200 | $ | 210 | |||
Buildings and leasehold improvements | 796 | 811 | |||||
Machinery and equipment | 3,408 | 3,353 | |||||
Construction in progress | 184 | 173 | |||||
4,588 | 4,547 | ||||||
Accumulated depreciation | (1,696 | ) | (1,615 | ) | |||
Property, plant and equipment, net | $ | 2,892 | $ | 2,932 | |||
Machinery and equipment includes certain precious metals used in our production tooling, which comprise approximately 17 percent of total machinery and equipment as of September 30, 2014, and December 31, 2013. Precious metals used in our production tooling are depleted as they are consumed during the production process, which typically represents an annual expense of less than 3 percent of the outstanding carrying value. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2014 | |
Investments, All Other Investments [Abstract] | ' |
ACQUISITIONS | ' |
ACQUISITIONS | |
During the third quarter of 2014, the Company completed the acquisition of Transaco, a building materials distribution company in Chile. | |
The Company provided total consideration of $12 million comprised of cash payments of $7 million on September 4, 2014 and a put/call option with a strike price based on a 2016 EBITDA multiple exercisable in 2017. The fair value of the put/call option is $5 million and has been recorded in other liabilities on the Consolidated Balance Sheets. The acquisition resulted in the recognition of $4 million in intangible assets and $2 million in goodwill. The pro-forma effect of this acquisition on revenues and earnings was not material to the three and nine months ended September 30, 2014. |
DIVESTITURES
DIVESTITURES | 9 Months Ended |
Sep. 30, 2014 | |
Business Divestitures [Abstract] | ' |
DIVESTITURES | ' |
DIVESTITURES | |
In the third quarter of 2014, the Company finalized the sale of its Building Materials European Stone business to an unrelated third party. As a result of this sale, the Company received $2 million in compensation and year to date has recorded a pre-tax charge of $20 million in Other (income) expenses, net on the Consolidated Statements of Earnings. | |
In the second quarter of 2014, the Company received final payment of $44 million related to the previously announced fourth quarter 2010 sale of our Masonry Products business to Boral Industries Ltd (“Boral”), an unrelated third party. | |
On September 13, 2013, the Company signed an agreement to sell its Composites glass reinforcements facility in Hangzhou, People's Republic of China, for total compensation of approximately $70 million to the Hangzhou Municipal Land Reservation Center and the Development and Construction Management Office of Taoyuan New Zone of Gongshu District in Hangzhou (“Hangzhou Government”), both of which are unrelated third party government entities. In the first quarter of 2014, the Company returned the land to the Hangzhou Government and recorded a net gain of $45 million, which is recorded in Other (income) expenses, net on the Consolidated Statements of Earnings for the nine month period ended September 30, 2014. The balance of the compensation, approximately $14 million, has been recorded in Other current assets on the Consolidated Balance Sheets. Final payment is due upon the Hangzhou government’s completion of demolition activities, currently forecast for the fourth quarter of 2014. |
ASSETS_HELD_FOR_SALE
ASSETS HELD FOR SALE | 9 Months Ended |
Sep. 30, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
ASSETS HELD FOR SALE | ' |
ASSETS HELD FOR SALE | |
In the third quarter of 2014, the Company closed its Alcala, Spain facility as announced in our 2012 Composites cost reduction actions. The assets held for sale consisted of $9 million of Property, Plant and Equipment. There were no other assets or liabilities held for sale related to these facilities as of September 30, 2014. | |
During 2013, the Company closed its Vado, Italy facility. The assets held for sale consisted of $7 million of Property, Plant and Equipment. There were no other assets or liabilities held for sale related to these facilities as of September 30, 2014. |
WARRANTIES
WARRANTIES | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Product Warranties Disclosures [Abstract] | ' | |||
WARRANTIES | ' | |||
WARRANTIES | ||||
The Company records a liability for warranty obligations at the date the related products are sold. Adjustments are made as new information becomes available. A reconciliation of the warranty liability is as follows (in millions): | ||||
Nine Months Ended September 30, 2014 | ||||
Beginning balance | $ | 41 | ||
Amounts accrued for current year | 17 | |||
Settlements of warranty claims | (21 | ) | ||
Ending balance | $ | 37 | ||
COST_REDUCTION_ACTIONS
COST REDUCTION ACTIONS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
COST REDUCTION ACTIONS | ' | |||||||||||||||
COST REDUCTION ACTIONS | ||||||||||||||||
2014 Cost Reduction Actions | ||||||||||||||||
We took actions in 2014 to reduce costs in our Composites segment. In the third quarter of 2014, these actions related to our decision to not rebuild two sub-scale high cost furnaces that will result in closing a facility in Japan and optimizing a facility in Canada. As a result of these actions, we recognized $16 million in severance charges, $3 million in contract termination charges, and $2 million in other related charges. | ||||||||||||||||
In the first quarter of 2014, these actions related to global workforce reductions and the termination of a contract with a utility services provider. In conjunction with these actions, the Company recorded $14 million in charges related to cost reduction actions for the nine months ended September 30, 2014, of which $11 million is related to severance and $3 million is related to contract termination charges. Both items were recorded in the first quarter of 2014 and have been reported in charges related to cost reduction actions on the Consolidated Statements of Earnings. | ||||||||||||||||
The following table summarizes the status of the unpaid accrued liabilities from the Company’s 2014 cost reduction actions (in millions): | ||||||||||||||||
Beginning | Costs | Payments | Ending | Cumulative | ||||||||||||
Balance | Incurred | Balance | Charges | |||||||||||||
December 31, | September 30, | Incurred | ||||||||||||||
2013 | 2014 | |||||||||||||||
Severance | $ | — | $ | 27 | $ | 2 | $ | 25 | $ | 27 | ||||||
Contract termination | — | 6 | 3 | 3 | 6 | |||||||||||
Total | $ | — | $ | 33 | $ | 5 | $ | 28 | $ | 33 | ||||||
2013 Cost Reduction Actions | ||||||||||||||||
As a result of the Company’s decision to divest its Composites glass reinforcements facility in Hangzhou, People's Republic of China, discussed in Note 8 above to the Consolidated Financial Statements, we recorded $6 million in charges related to cost reduction actions on the Consolidated Statements of Earnings for the year ended December 31, 2013. In the first quarter of 2014, the Company revised its estimated total severance costs of this action by $2 million. There were no additional costs incurred in the third quarter of 2014. | ||||||||||||||||
The following table summarizes the status of the unpaid accrued liabilities from the Company’s 2013 cost reduction actions (in millions): | ||||||||||||||||
Beginning | Costs | Payments | Ending | Cumulative | ||||||||||||
Balance | Incurred | Balance | Charges | |||||||||||||
December 31, | September 30, | Incurred | ||||||||||||||
2013 | 2014 | |||||||||||||||
Severance | $ | 6 | $ | (2 | ) | $ | 4 | $ | — | $ | 4 | |||||
Total | $ | 6 | $ | (2 | ) | $ | 4 | $ | — | $ | 4 | |||||
2012 Cost Reduction Actions | ||||||||||||||||
The following table summarizes the status of the unpaid accrued liabilities from the Company’s 2012 cost reduction actions (in millions): | ||||||||||||||||
Beginning | Costs | Payments | Ending | Cumulative | ||||||||||||
Balance | Incurred | Balance | Charges | |||||||||||||
December 31, | September 30, | Incurred | ||||||||||||||
2013 | 2014 | |||||||||||||||
Severance | $ | 26 | $ | — | $ | 22 | $ | 4 | $ | 53 | ||||||
Total | $ | 26 | $ | — | $ | 22 | $ | 4 | $ | 53 | ||||||
DEBT
DEBT | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
DEBT | ' | ||||||
DEBT | |||||||
Details of the Company’s outstanding long-term debt are as follows (in millions): | |||||||
30-Sep-14 | 31-Dec-13 | ||||||
6.5% senior notes, net of discount, due 2016 | $ | 400 | $ | 400 | |||
9.0% senior notes, net of discount, due 2019 | 248 | 248 | |||||
4.2% senior notes, net of discount, due 2022 | 600 | 599 | |||||
7.0% senior notes, net of discount, due 2036 | 540 | 540 | |||||
Accounts receivable securitization facility, maturing in 2016 | 212 | 162 | |||||
Senior revolving credit facility, maturing in 2018 | 111 | 12 | |||||
Various capital leases, due through and beyond 2050 | 48 | 49 | |||||
Various floating rate debt, maturing through 2017 | 1 | 1 | |||||
Fair value adjustment to debt | 15 | 16 | |||||
Total long-term debt | 2,175 | 2,027 | |||||
Less – current portion | 4 | 3 | |||||
Long-term debt, net of current portion | $ | 2,171 | $ | 2,024 | |||
Senior Notes | |||||||
The Company issued $600 million of 2022 senior notes on October 17, 2012. The proceeds of these notes were used to refinance $250 million of our 2016 senior notes, $100 million of our 2019 senior notes and pay down our Senior Revolving Credit Facility. Interest on the notes is payable semiannually in arrears on June 15 and December 15 each year, beginning on June 15, 2013. | |||||||
The Company issued $350 million of 2019 senior notes on June 3, 2009. On October 31, 2006, we issued $650 million of 2016 senior notes and $540 million of 2036 senior notes. The proceeds of these notes were used to pay certain unsecured and administrative claims, finance general working capital needs and for general corporate purposes. | |||||||
Collectively, the notes above are referred to as the “Senior Notes." The Senior Notes are general unsecured obligations of the Company and rank pari passu with all existing and future senior unsecured indebtedness of the Company. | |||||||
The Senior Notes are fully and unconditionally guaranteed by each of the Company’s current and future domestic subsidiaries that are a borrower or guarantor under the Company’s Credit Agreement (as defined below). The guarantees are unsecured and rank equally in right of payment with all other existing and future senior unsecured indebtedness of the guarantors. The guarantees are effectively subordinated to existing and future secured debt of the guarantors to the extent of the assets securing that indebtedness. | |||||||
The Company has the option to redeem all or part of the Senior Notes at any time at a “make whole” redemption price. The Company is subject to certain covenants in connection with the issuance of the Senior Notes that it believes are usual and customary. The Company was in compliance with these covenants as of September 30, 2014. | |||||||
In the fourth quarter of 2011, the Company terminated interest rate swaps designated to hedge a portion of the 6.5 percent senior notes due 2016. The swaps were carried at fair value and recorded as other assets or liabilities, with a fair value adjustment to long-term debt on the Consolidated Balance Sheets. The fair value adjustment to debt will be amortized through 2016 as a reduction to interest expense in conjunction with the maturity date of the notes. | |||||||
On June 28, 2013, the Company entered into interest rate swap agreements effective July 1, 2013 to manage its interest rate exposure by swapping $100 million of fixed rate to variable rate exposure designated against our 4.2 percent senior notes due 2022. The swaps are carried at fair value and recorded as other assets or liabilities, with a fair value adjustment to long-term debt on the Consolidated Balance Sheets. | |||||||
Senior Credit Facility | |||||||
In November 2013, the Company amended the credit agreement (the “Credit Agreement”) for the $800 million multi-currency senior revolving credit facility (the “Senior Revolving Credit Facility”) to extend the maturity to November 2018 and reduce the letters of credit sublimit to $100 million. The Senior Revolving Credit Facility includes both borrowings and letters of credit. Borrowings under the Senior Revolving Credit Facility may be used for general corporate purposes and working capital. The Company has the discretion to borrow under multiple options, which provide for varying terms and interest rates including the United States prime rate or LIBOR plus a spread. | |||||||
The Senior Revolving Credit Facility contains various covenants, including a maximum allowed leverage ratio and a minimum required interest expense coverage ratio that the Company believes are usual and customary for a senior unsecured credit agreement. The Company was in compliance with these covenants as of September 30, 2014. | |||||||
The Company had $4 million of letters of credit outstanding under the Senior Revolving Credit Facility at September 30, 2014. | |||||||
Receivables Securitization Facility | |||||||
Included in long-term debt on the Consolidated Balance Sheets are amounts outstanding under a Receivables Purchase Agreement (the “RPA”) that are accounted for as secured borrowings in accordance with ASC 860, "Accounting for Transfers and Servicing." Owens Corning Sales, LLC and Owens Corning Receivables LLC, each a subsidiary of the Company, have a $250 million RPA with certain financial institutions. The RPA was amended in the third quarter of 2013 to extend maturity to July 2016 and reduce the size of the facility to $200 million during the months of November, December, and January each year. At September 30, 2014 the Company utilized the full amount permitted under the terms of the RPA. The Company had $37 million of letters of credit outstanding under the RPA at September 30, 2014. | |||||||
The RPA contains various covenants, including a maximum allowed leverage ratio and a minimum required interest expense coverage ratio that the Company believes are usual and customary for a securitization facility. The Company was in compliance with these covenants as of September 30, 2014. | |||||||
Owens Corning Receivables LLC’s sole business consists of the purchase or acceptance through capital contributions of trade receivables and related rights from Owens Corning Sales, LLC and the subsequent retransfer of or granting of a security interest in such trade receivables and related rights to certain purchasers who are party to the RPA. Owens Corning Receivables LLC is a separate legal entity with its own separate creditors who will be entitled, upon its liquidation, to be satisfied out of Owens Corning Receivables LLC’s assets prior to any assets or value in Owens Corning Receivables LLC becoming available to Owens Corning Receivables LLC’s equity holders. The assets of Owens Corning Receivables LLC are not available to pay creditors of the Company or any other affiliates of the Company or Owens Corning Sales, LLC. | |||||||
Short-Term Debt | |||||||
At September 30, 2014 and December 31, 2013, short-term borrowings were $22 million and $1 million, respectively. The short-term borrowings for both periods consisted of various operating lines of credit and working capital facilities. The weighted average interest rate on short-term borrowings was approximately 3.7 percent for September 30, 2014, and 2.2 percent for December 31, 2013. |
PENSION_PLANS_AND_OTHER_POSTRE
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ' | ||||||||||||||||||
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | ' | ||||||||||||||||||
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | |||||||||||||||||||
Pension Plans | |||||||||||||||||||
The Company sponsors defined benefit pension plans. Under the plans, pension benefits are based on an employee’s years of service and, for certain categories of employees, qualifying compensation. Company contributions to these pension plans are determined by an independent actuary to meet or exceed minimum funding requirements. In our Non-U.S. plans, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average future service period of plan participants expected to receive benefits. In our U.S. plans, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average remaining life expectancy of the inactive participants as substantially all of the plan participants are inactive. | |||||||||||||||||||
The following tables provide information regarding pension expense recognized (in millions): | |||||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | ||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | ||||||||||||||
Components of Net Periodic Pension Cost | |||||||||||||||||||
Service cost | $ | 2 | $ | 2 | $ | 4 | $ | 2 | $ | — | $ | 2 | |||||||
Interest cost | 12 | 6 | 18 | 11 | 5 | 16 | |||||||||||||
Expected return on plan assets | (14 | ) | (7 | ) | (21 | ) | (14 | ) | (7 | ) | (21 | ) | |||||||
Amortization of actuarial loss | 2 | 1 | 3 | 4 | 1 | 5 | |||||||||||||
Net periodic pension cost | $ | 2 | $ | 2 | $ | 4 | $ | 3 | $ | (1 | ) | $ | 2 | ||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | ||||||||||||||
Components of Net Periodic Pension Cost | |||||||||||||||||||
Service cost | $ | 6 | $ | 4 | $ | 10 | $ | 7 | $ | 4 | $ | 11 | |||||||
Interest cost | 36 | 17 | 53 | 33 | 16 | 49 | |||||||||||||
Expected return on plan assets | (43 | ) | (20 | ) | (63 | ) | (44 | ) | (19 | ) | (63 | ) | |||||||
Amortization of actuarial loss | 7 | 2 | 9 | 11 | 4 | 15 | |||||||||||||
Net periodic pension cost | $ | 6 | $ | 3 | $ | 9 | $ | 7 | $ | 5 | $ | 12 | |||||||
The Company expects to contribute approximately $35 million in cash to the United States Pension Plans and another $18 million to non-United States plans during 2014. The Company made cash contributions of approximately $51 million to the plans during the nine months ended September 30, 2014. | |||||||||||||||||||
Postemployment and Postretirement Benefits Other than Pension Plans | |||||||||||||||||||
The Company maintains healthcare and life insurance benefit plans for certain retired employees and their dependents. The health care plans in the United States are non-funded and pay either (1) stated percentages of covered medically necessary expenses, after subtracting payments by Medicare or other providers and after stated deductibles have been met, or (2) fixed amounts of medical expense reimbursement. | |||||||||||||||||||
The following table provides the components of net periodic benefit cost for aggregated United States and non-United States Plans for the periods indicated (in millions): | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 2 | $ | 2 | |||||||||||
Interest cost | 3 | 2 | 8 | 7 | |||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | (3 | ) | (3 | ) | |||||||||||
Amortization of actuarial gain | (1 | ) | (1 | ) | (2 | ) | (1 | ) | |||||||||||
Net periodic benefit cost | $ | 2 | $ | 1 | $ | 5 | $ | 5 | |||||||||||
CONTINGENT_LIABILITIES_AND_OTH
CONTINGENT LIABILITIES AND OTHER MATTERS | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
CONTINGENT LIABILITIES AND OTHER MATTERS | ' |
CONTINGENT LIABILITIES AND OTHER MATTERS | |
The Company is involved in various legal proceedings relating to employment, product liability and other matters (collectively, “Proceedings”). The Company regularly reviews the status of such Proceedings with legal counsel. Liabilities for such Proceedings are recorded when it is probable that the liability has been incurred and when the amount of the liability can be reasonably estimated. Liabilities are adjusted when additional information becomes available. Management believes that the amount of any reasonably possible losses in excess of any amounts accrued, if any, with respect to such Proceedings or any other known claim, including the matters described below under the caption Environmental Matters (the “Environmental Matters”) will not be material to the Company’s financial statements. Management believes that the ultimate disposition of the Proceedings and the Environmental Matters will not have a material adverse effect on the Company’s operations or financial condition taken as a whole. | |
Environmental Matters | |
We have been deemed by the Environmental Protection Agency (“EPA”) to be a Potentially Responsible Party (“PRP”) with respect to certain sites under the Comprehensive Environmental Response Compensation and Liability Act. We have also been deemed a PRP under similar state or local laws and in other instances other PRPs have brought suits against us as a PRP for contribution under such federal, state, or local laws. At September 30, 2014, we had environmental remediation liabilities as a PRP at 21 sites where we have a continuing legal obligation to either complete remedial actions or contribute to the completion of remedial actions as part of a group of PRPs. For these sites we estimate a reserve to reflect environmental liabilities that have been asserted or are probable of assertion, in which liabilities are probable and reasonably estimable. At September 30, 2014, our reserve for such liabilities was $4 million. | |
Kearny, New Jersey Manufacturing Facility | |
During the week of October 29, 2012, the Company experienced a flood at its Kearny, New Jersey manufacturing facility as a result of Hurricane Sandy. Our Roofing facility returned to full operating capacity in the third quarter of 2013 and we settled our insurance claims in December of 2013. For the three month and nine month periods ended September 30, 2014, the Company incurred an additional $0 million and $6 million, respectively, in losses related to clean-up activities. For the nine month period ended September 30, 2014, $5 million has been reported in Other (income) expenses, net and $1 million has been reported in Cost of Sales on the Consolidated Statements of Earnings. The Company does not anticipate any additional charges to be incurred. | |
For the three months ended September 30, 2013, the Company incurred $2 million (net of insurance proceeds) in losses related to clean up activities and business interruption, of which $4 million of losses have been reported in Cost of Sales, partially offset by $2 million net gain reported in Other (income) expenses, net on the Consolidated Statements of Earnings. For the nine months ended September 30, 2013, the Company incurred $16 million (net of insurance proceeds) in losses related to clean up activities and business interruption, of which $26 million of losses have been reported in Cost of Sales, partially offset by a $10 million net gain reported in Other (income) expenses, net on the Consolidated Statements of Earnings. |
STOCK_COMPENSATION
STOCK COMPENSATION | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
STOCK COMPENSATION | ' | ||||||||||||
STOCK COMPENSATION | |||||||||||||
2013 Stock Plan | |||||||||||||
On April 18, 2013, the Company’s stockholders approved the Owens Corning 2013 Stock Plan (the “2013 Stock Plan”) which replaced the 2010 Stock Plan. The 2013 Stock Plan authorizes grants of stock options, stock appreciation rights, restricted stock awards, restricted stock units, bonus stock awards and performance stock awards. Under the 2013 Stock Plan, 1.5 million shares of common stock may be granted in addition to the shares of Company common stock that rolled over from the 2010 Stock Plan as of April 18, 2013. Such shares of common stock include shares that were available but not granted, or which were granted but were not issued or delivered due to expiration, termination, cancellation or forfeiture of such awards. There will be no future grants made under the 2010 Stock Plan. At September 30, 2014, the number of shares remaining available under the 2013 Stock Plan for all stock awards was 2.4 million. | |||||||||||||
Stock Options | |||||||||||||
The Company has granted stock options under its stockholder approved stock plans. The Company calculates a weighted-average grant-date fair value using a Black-Scholes valuation model for options granted. Compensation expense for options is measured based on the fair market value of the option on the date of grant, and is recognized on a straight-line basis over a four year vesting period. In general, the exercise price of each option awarded was equal to the market price of the Company’s common stock on the date of grant and an option’s maximum term is 10 years. The volatility assumption was based on a benchmark study of our peers prior to 2014. Starting with the options granted in 2014 the volatility was based on the company’s historic volatility. | |||||||||||||
During the nine months ended September 30, 2014, 374,500 stock options were granted with a weighted-average grant date fair value of $19.05. Assumptions used in the Company’s Black-Scholes valuation model to estimate the grant date fair value were expected volatility of 50.85%, expected dividends of $0, expected term of 6.25 years and a risk-free interest rate of 1.9%. | |||||||||||||
During the three and nine months ended September 30, 2014, the Company recognized expense of $1 million and $4 million respectively, related to the Company’s stock options. During the three and nine months ended September 30, 2013, the Company recognized expense of $1 million and $4 million respectively, related to the Company’s stock options. As of September 30, 2014, there was $10 million of total unrecognized compensation cost related to stock options. That cost is expected to be recognized over a weighted-average period of 2.71 years. The total aggregate intrinsic value of options outstanding as of September 30, 2014 and 2013 was $10 million and $25 million. | |||||||||||||
The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2014: | |||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||
Number of | Weighted- | ||||||||||||
Options | Average | ||||||||||||
Exercise Price | |||||||||||||
Beginning Balance | 2,748,720 | $ | 29.55 | ||||||||||
Granted | 374,500 | 37.65 | |||||||||||
Exercised | (249,950 | ) | 28.11 | ||||||||||
Forfeited | (25,250 | ) | 38.09 | ||||||||||
Expired | (1,225 | ) | 32.23 | ||||||||||
Ending Balance | 2,846,795 | $ | 30.66 | ||||||||||
The following table summarizes information about the Company’s options outstanding and exercisable: | |||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||
Options | Weighted-Average | Number | Weighted-Average | ||||||||||
Outstanding | Exercisable | ||||||||||||
at September 30, | |||||||||||||
Range of Exercise Prices | Remaining | Exercise | 2014 | Remaining | Exercise | ||||||||
Contractual Life | Price | Contractual Life | Price | ||||||||||
$13.89-$42.16 | 2,846,795 | 5.28 | $ | 30.66 | 2,016,445 | 3.99 | $ | 27.72 | |||||
Restricted Stock Awards and Restricted Stock Units | |||||||||||||
The Company has granted restricted stock awards and restricted stock units (collectively referred to as “restricted stock”) under its stockholder approved stock plans. Compensation expense for restricted stock is measured based on the market price of the stock at date of grant and is recognized on a straight-line basis over the four-year vesting period. Stock restrictions are subject to alternate vesting plans for death, disability, approved early retirement and involuntary termination, over various periods ending in 2019. | |||||||||||||
During the three and nine months ended September 30, 2014, the Company recognized expense of $4 million and $13 million respectively, related to the Company’s restricted stock. During the three and nine months ended September 30, 2013, the Company recognized expense of $4 million and $12 million respectively, related to the Company’s restricted stock. As of September 30, 2014, there was $28 million of total unrecognized compensation cost related to restricted stock. That cost is expected to be recognized over a weighted-average period of 2.65 years. The total fair value of shares vested during the nine months ended September 30, 2014 and 2013 was $14 million and $16 million, respectively. | |||||||||||||
A summary of the status of the Company’s plans that had restricted stock issued as of September 30, 2014, and changes during the nine months ended September 30, 2014, are presented below: | |||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||
Number of Shares | Weighted-Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Beginning Balance | 1,735,824 | $ | 32.49 | ||||||||||
Granted | 488,257 | 37.85 | |||||||||||
Vested | (431,958 | ) | 32.67 | ||||||||||
Forfeited | (50,515 | ) | 37.04 | ||||||||||
Ending Balance | 1,741,608 | $ | 33.79 | ||||||||||
Performance Stock Awards and Performance Stock Units | |||||||||||||
The Company has granted performance stock awards and performance stock units (collectively referred to as “PSUs”) as a part of its long-term incentive plan. Outstanding grants issued in 2013 forward will be fully settled in stock and outstanding grants issued in 2012 will be settled 50 percent in stock and 50 percent in cash. The amount of the stock and/or cash ultimately distributed is contingent on meeting various company or stockholder return goals. | |||||||||||||
Compensation expense for PSUs settled in stock is measured based on the grant date fair value and is recognized on a straight-line basis over the vesting period. Compensation expense for PSUs settled in cash is measured based on the fair value at the end of each quarter and is recognized on a straight-line basis over the vesting period. Vesting will be accelerated in the case of death or disability, and awards earned will be paid at the end of the three-year period. | |||||||||||||
In the first nine months of 2014, the Company granted PSUs that vest after a three-year period based on the Company’s total stockholder return relative to the performance of the companies in the S&P 500 Index for the respective three-year period. The amount of stock distributed will vary from 0 percent to 200 percent of PSUs awarded depending on the relative stockholder return performance. | |||||||||||||
During the three and nine months ended September 30, 2014, the Company recognized expense of $1 and $4 million, respectively related to the Company’s PSUs. During the three and nine months ended September 30, 2013, the Company recognized a gain of $1 million and an expense of $5 million, respectively, related to PSUs. As of September 30, 2014, there was $12 million of total unrecognized compensation cost related to PSUs. That cost is expected to be recognized over a weighted-average period of 1.83 years. | |||||||||||||
A summary of the status of the Company’s plans that had PSUs issued as of September 30, 2014, and changes during the nine months ended September 30, 2014, is presented below: | |||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||
Number | Weighted-Average | ||||||||||||
of PSUs | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Beginning Balance | 410,500 | $ | 53.04 | ||||||||||
Granted | 248,950 | 44.43 | |||||||||||
Forfeited | (31,150 | ) | 40 | ||||||||||
Ending Balance | 628,300 | $ | 50.27 | ||||||||||
2013 Employee Stock Purchase Plan | |||||||||||||
On April 18, 2013, the Company’s stockholders approved the Owens Corning Employee Stock Purchase Plan (“ESPP”). The ESPP is a tax-qualified plan under Section 423 of the Internal Revenue Code. The purchase price of shares purchased under the ESPP is equal to 85% of the lower of the fair market value of shares of Owens Corning common stock at the beginning or ending of the offering period, which is a six-month period ending on May 31 and November 30 of each year. There are 2 million shares available for purchase under the ESPP as of its approval date. During the three and nine months ended September 30, 2014, the Company had expense of $0.4 million and $1 million, respectively. During the three and nine months ended September 30, 2013, the Company had expense of $0.4 million and $0.6 million, respectively. As of September 30, 2014, there was less than $1 million of total unrecognized compensation cost related to the ESPP. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
EARNINGS PER SHARE | ' | ||||||||||||
EARNINGS PER SHARE | |||||||||||||
The following table summarizes the number of shares outstanding as well as our basic and diluted earnings per-share (in millions, except per share amounts): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Net earnings attributable to Owens Corning | $ | 52 | $ | 51 | $ | 193 | $ | 122 | |||||
Weighted-average number of shares outstanding used for basic earnings per share | 117.4 | 118 | 117.5 | 118.4 | |||||||||
Non-vested restricted and performance shares | 0.4 | 0.4 | 0.4 | 0.4 | |||||||||
Options to purchase common stock | 0.3 | 0.4 | 0.4 | 0.5 | |||||||||
Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share | 118.1 | 118.8 | 118.3 | 119.3 | |||||||||
Earnings per common share attributable to Owens Corning common stockholders: | |||||||||||||
Basic | $ | 0.44 | $ | 0.43 | $ | 1.64 | $ | 1.03 | |||||
Diluted | $ | 0.44 | $ | 0.43 | $ | 1.63 | $ | 1.02 | |||||
Basic earnings per share is calculated by dividing earnings attributable to Owens Corning by the weighted-average number of shares of the Company’s common stock outstanding during the period. Outstanding shares consist of issued shares less treasury stock. | |||||||||||||
On April 25, 2012, the Company announced a new share buy-back program under which the Company is authorized to repurchase up to 10 million shares of the Company’s outstanding common stock (the “2012 Repurchase Program”). The 2012 Repurchase Program is in addition to the share buy-back program announced August 4, 2010 (the “2010 Repurchase Program” and collectively with the 2012 Repurchase Program, the “Repurchase Programs”). The Repurchase Programs authorize the Company to repurchase shares through the open market, in privately negotiated or other transactions. The actual number of shares repurchased will depend on timing, market conditions and other factors and will be at the Company’s discretion. During the three months ended September 30, 2014, no shares were repurchased under the Repurchase Programs. As of September 30, 2014, 7.7 million shares remain available for repurchase under the authorized programs. | |||||||||||||
For the three and nine months ended September 30, 2014, the number of shares used in the calculation of diluted earnings per share did not include 1.3 million and 1.0 million, respectively, of options to purchase common stock due to their anti-dilutive effect. | |||||||||||||
For the three and nine months ended September 30, 2013, the number of shares used in the calculation of diluted earnings per share did not include 0.2 million non-vested Restricted and Performance shares, 1.0 million and 0.7 million of options to purchase common stock, respectively, 17.5 million common equivalent shares from Series A Warrants or 7.8 million common equivalent shares from Series B Warrants due to their anti-dilutive effect. |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
FAIR VALUE MEASUREMENT | ' | ||||||||||||
FAIR VALUE MEASUREMENT | |||||||||||||
Items Measured at Fair Value | |||||||||||||
The Company classifies and discloses assets and liabilities carried at fair value in one of the following three categories: | |||||||||||||
Level 1: Quoted market prices in active markets for identical assets or liabilities. | |||||||||||||
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. | |||||||||||||
Level 3: Unobservable inputs that are not corroborated by market data. | |||||||||||||
The following table summarizes the fair values, and levels within the fair value hierarchy in which the fair value measurements fall, for assets and liabilities measured on a recurring basis as of September 30, 2014 (in millions): | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
Measured at | in Active | Other | Unobservable | ||||||||||
Fair Value | Markets for | Observable | Inputs | ||||||||||
Identical | Inputs | (Level 3) | |||||||||||
Assets | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents | $ | 10 | $ | 10 | $ | — | $ | — | |||||
Term deposits | 14 | 14 | — | — | |||||||||
Derivative assets | 9 | — | 9 | — | |||||||||
Total assets | $ | 33 | $ | 24 | $ | 9 | $ | — | |||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 3 | $ | — | $ | 3 | $ | — | |||||
Contingent consideration | 5 | — | — | 5 | |||||||||
Total liabilities | $ | 8 | $ | — | $ | 3 | $ | 5 | |||||
The following table summarizes the fair values, and levels within the fair value hierarchy in which the fair value measurements fall, for assets and liabilities measured on a recurring basis as of December 31, 2013 (in millions): | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
Measured at | in Active | Other | Unobservable | ||||||||||
Fair Value | Markets for | Observable | Inputs | ||||||||||
Identical | Inputs | (Level 3) | |||||||||||
Assets | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents | $ | 20 | $ | 20 | $ | — | $ | — | |||||
Term deposits | 2 | 2 | — | — | |||||||||
Derivative assets | 1 | — | 1 | — | |||||||||
Total assets | $ | 23 | $ | 22 | $ | 1 | $ | — | |||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 4 | $ | — | $ | 4 | $ | — | |||||
Total liabilities | $ | 4 | $ | — | $ | 4 | $ | — | |||||
Cash equivalents and term deposits are included in cash and cash equivalents on the Consolidated Balance Sheets. The Company measures the value of its natural gas hedge contracts, electricity contracts and foreign currency forward contracts using Level 2 inputs. The fair value of the Company’s natural gas hedges and electricity contracts is determined by a mark to market valuation based on forward curves using observable market prices and the fair value of its foreign currency forward contracts is determined using observable market transactions in over-the-counter markets. | |||||||||||||
Contingent consideration | |||||||||||||
In connection with our third quarter 2014 acquisition of Transaco discussed in Note 7, we recorded contingent consideration pertaining to amounts payable to the former owners related to a put/call option that is to be determined based on a multiple of 2016 EBITDA that contains a cap of $7 million and a floor of $4 million. The valuation of contingent consideration uses assumptions we believe would be made by a market participant and has been based on significant inputs not observable in the market. The significant unobservable input used in the fair value measurement of our contingent consideration includes our internal forecast of business performance. | |||||||||||||
Items Disclosed at Fair Value | |||||||||||||
Assets held for sale | |||||||||||||
At September 30, 2014 the Company had nonfinancial assets, principally property, plant and equipment, with a net book value of $11 million which were accounted for at fair value on a nonrecurring basis. These assets were tested for impairment and the Company recognized losses of $3 million in the three and nine months ended September 30, 2014, primarily in connection with the final closing of our Alcala, Spain facility as announced in our 2012 Composites cost reduction actions. The Company has determined that the fair value measurements of these nonfinancial assets are level 3 in the fair value hierarchy. The valuation of property, plant and equipment uses assumptions we believe would be made by a market participant and has been based on significant inputs not observable in the market. The significant unobservable input used in the fair value measurement of property, plant and equipment includes recent market transactions for similar assets. | |||||||||||||
Long-term notes receivable | |||||||||||||
The fair value of the Company’s long-term notes receivable has been calculated using the expected future cash flows discounted at market interest rates. The Company believes that the carrying amounts reasonably approximate the fair values of long-term notes receivable. Long-term notes receivable were $1 million and $6 million as of September 30, 2014, and December 31, 2013, respectively. | |||||||||||||
Long-term debt | |||||||||||||
The fair value of the Company’s long-term debt has been calculated based on quoted market prices for the same or similar issues, or on the current rates offered to the Company for debt of the same remaining maturities. | |||||||||||||
As of September 30, 2014, the Company’s 6.50 percent senior notes due 2016 were trading at approximately 109 percent of par value, the 7.00 percent senior notes due 2036 were trading at approximately 121 percent of par value, the 9.00 percent senior notes due 2019 were trading at approximately 123 percent of par value, and the 4.20 percent senior notes due 2022 were trading at approximately 101 percent of par value. The Company determined that the book value of the remaining long-term debt instruments approximates market value. This approach, using Level 1 inputs and utilizing indicative market rates for a new debt issuance, approximated the fair value of the remaining long-term debt at $372 million. | |||||||||||||
As of December 31, 2013, the Company’s 6.50 percent senior notes due 2016 were trading at approximately 111 percent of par value, the 7.00 percent senior notes due 2036 were trading at approximately 107 percent of par value, the 9.00 percent senior notes due 2019 were trading at approximately 125 percent of par value, and the 4.20 percent senior notes due 2022 were trading at approximately 96 percent of par value. The Company determined that the book value of the remaining long-term debt instruments approximates market value. This approach, using Level 1 inputs and utilizing indicative market rates for a new debt issuance, approximated the fair value of the remaining long-term debt at $224 million. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
Income taxes for the three and nine months ended September 30, 2014, was an expense of $27 million and $9 million, respectively. For the third quarter and year-to-date 2014, the Company’s effective tax rate was 34 percent and 4 percent, respectively. For the third quarter, the difference between the effective tax rate and the statutory rate of 35 percent is primarily attributable to the tax accounting treatment related to various locations which are currently in a loss position. For the year-to-date period, the difference between the effective tax rate and the statutory rate of 35 percent is primarily attributable to the resolution of an uncertain tax position upon receiving final notification from the IRS that it had completed its audit examination for the taxable years 2008 through 2010 and the reversal of a valuation allowance recorded in prior years against certain European net deferred tax assets which cumulatively totaled $78 million. The remaining differences relate to other discrete adjustments in the quarter and the accounting treatment of various locations which are currently in a loss position in the third quarter 2014. | |
Income tax expense for the three and nine months ended September 30, 2013, was $26 million and $71 million, respectively. For the third quarter and year-to-date 2013, the Company’s effective tax rate was 34 percent and 37 percent, respectively. For both periods, the difference between the effective tax rate and the statutory rate of 35 percent is primarily attributable to various tax planning initiatives and the tax accounting treatment related to various locations which are currently in a loss position. |
CHANGES_IN_ACCUMULATED_OTHER_C
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | |||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||||
The following table summarizes the changes in accumulated other comprehensive income (“AOCI”) for the nine months ended September 30, 2014 (in millions): | ||||||||||||||||
Cash Flow | Defined | OCI | Foreign | Total | ||||||||||||
Hedge | Benefit | Valuation | Currency | |||||||||||||
Activity | Pension Plan | Allowance | Translation | |||||||||||||
Activity | Activity | Adjustment | ||||||||||||||
Balance as of December 31, 2013, net of tax | $ | — | $ | (184 | ) | $ | (115 | ) | $ | 2 | $ | (297 | ) | |||
Amounts classified into AOCI, net of tax | (1 | ) | 2 | — | (65 | ) | (64 | ) | ||||||||
Amounts reclassified from AOCI, net of tax | — | 4 | — | 1 | 5 | |||||||||||
Change in AOCI, net of tax | (1 | ) | 6 | — | (64 | ) | (59 | ) | ||||||||
Balance as of September 30, 2014, net of tax | $ | (1 | ) | $ | (178 | ) | $ | (115 | ) | $ | (62 | ) | $ | (356 | ) | |
The following table summarizes the changes in accumulated other comprehensive income (“AOCI”) for the nine months ended September 30, 2013 (in millions): | ||||||||||||||||
Cash Flow | Defined | OCI | Foreign | Total | ||||||||||||
Hedge | Benefit | Valuation | Currency | |||||||||||||
Activity | Pension Plan | Allowance | Translation | |||||||||||||
Activity | Activity | Adjustment | ||||||||||||||
Balance as of December 31, 2012, net of tax | $ | (1 | ) | $ | (279 | ) | $ | (114 | ) | $ | 30 | $ | (364 | ) | ||
Amounts classified into AOCI, net of tax | (2 | ) | 2 | 1 | (30 | ) | (29 | ) | ||||||||
Amounts reclassified from AOCI, net of tax | 2 | 9 | — | — | 11 | |||||||||||
Change in AOCI, net of tax | — | 11 | 1 | (30 | ) | (18 | ) | |||||||||
Balance as of September 30, 2013, net of tax | $ | (1 | ) | $ | (268 | ) | $ | (113 | ) | $ | — | $ | (382 | ) | ||
The following table presents the impact and respective location of AOCI reclassifications on the Consolidated Statements of Earnings, net of tax (in millions): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cash Flow Hedge Activity: | ||||||||||||||||
Cost of sales | $ | — | $ | 1 | $ | — | $ | 2 | ||||||||
Defined Benefit Pension Plan Activity: | ||||||||||||||||
Cost of sales | 1 | 2 | 3 | 7 | ||||||||||||
Marketing and administrative expense | — | — | 1 | 2 | ||||||||||||
Foreign Currency Translation Adjustment: | ||||||||||||||||
Other (income) expenses, net | 1 | — | 1 | — | ||||||||||||
Total reclassifications from AOCI | $ | 2 | $ | 3 | $ | 5 | $ | 11 | ||||||||
ACCOUNTING_PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2014 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
ACCOUNTING PRONOUNCEMENTS | ' |
ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2013-11 Income Taxes (Topic 740): "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists." The new guidance is effective for fiscal year and interim periods beginning after December 15, 2013. The update does not have a material impact on the Company’s Consolidated Financial Statements and we have prospectively adopted the standard in fiscal year 2014. | |
In April 2014, the FASB issued ASU No. 2014-08, “Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU No. 2014-08 changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. ASU No. 2014-08 is effective prospectively for fiscal years beginning after December 15, 2014. The Company has early adopted this update in the second quarter of 2014. | |
In March 2013, the FASB issued ASU No. 2013-05, “Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity.” ASU No. 2013-05 clarifies when companies should release the cumulative translation adjustment (CTA) into net income when a parent either sells a part of or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets within a foreign entity. ASU No. 2013-05 is effective prospectively for fiscal years beginning after December 15, 2013. The update is not expected to have a material impact on the Company’s Consolidated Financial Statements and we have prospectively adopted the standard in fiscal year 2014. | |
In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606),” (“ASU 2014-09”). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnote disclosures. ASU 2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is not permitted. Accordingly, the standard is effective for us on January 1, 2017. |
CONDENSED_CONSOLIDATED_FINANCI
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ' | |||||||||||||||
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS | ||||||||||||||||
The following Condensed Consolidating Financial Statements present the financial information required with respect to those entities which guarantee certain of the Company’s debt. The Condensed Consolidating Financial Statements are presented on the equity method. Under this method, the investments in subsidiaries are recorded at cost and adjusted for the Company’s share of the subsidiaries’ cumulative results of operations, capital contributions, distributions and other equity changes. The principal elimination entries eliminate investment in subsidiaries and intercompany balances and transactions. | ||||||||||||||||
Guarantor and Nonguarantor Financial Statements | ||||||||||||||||
The Senior Notes and the Senior Revolving Credit Facility are guaranteed, fully, unconditionally and jointly and severally, by each of Owens Corning’s current and future 100% owned material domestic subsidiaries that is a borrower or a guarantor under Owens Corning’s Credit Agreement, which permits changes to the named guarantors in certain situations (collectively, the “Guarantor Subsidiaries”). The remaining subsidiaries have not guaranteed the Senior Notes and the Senior Revolving Credit Facility (collectively, the “Nonguarantor Subsidiaries”). | ||||||||||||||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF EARNINGS | ||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET SALES | $ | — | $ | 964 | $ | 511 | $ | (93 | ) | $ | 1,382 | |||||
COST OF SALES | (5 | ) | 795 | 434 | (93 | ) | 1,131 | |||||||||
Gross margin | 5 | 169 | 77 | — | 251 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Marketing and administrative expenses | 24 | 55 | 31 | — | 110 | |||||||||||
Science and technology expenses | — | 14 | 4 | — | 18 | |||||||||||
Charges related to cost reduction actions | — | — | 19 | — | 19 | |||||||||||
Other (income) expenses, net | 2 | (6 | ) | 1 | — | (3 | ) | |||||||||
Total operating expenses | 26 | 63 | 55 | — | 144 | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (21 | ) | 106 | 22 | — | 107 | ||||||||||
Interest expense, net | 26 | — | 2 | — | 28 | |||||||||||
EARNINGS BEFORE TAXES | (47 | ) | 106 | 20 | — | 79 | ||||||||||
Less: Income tax expense | (17 | ) | 37 | 7 | — | 27 | ||||||||||
Equity in net earnings of subsidiaries | 82 | 13 | — | (95 | ) | — | ||||||||||
Equity in net earnings of affiliates | — | — | — | — | — | |||||||||||
NET EARNINGS | 52 | 82 | 13 | (95 | ) | 52 | ||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 52 | $ | 82 | $ | 13 | $ | (95 | ) | $ | 52 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF EARNINGS | ||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET SALES | $ | — | $ | 921 | $ | 497 | $ | (98 | ) | $ | 1,320 | |||||
COST OF SALES | (3 | ) | 739 | 429 | (98 | ) | 1,067 | |||||||||
Gross margin | 3 | 182 | 68 | — | 253 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Marketing and administrative expenses | 25 | 68 | 35 | — | 128 | |||||||||||
Science and technology expenses | — | 13 | 6 | — | 19 | |||||||||||
Charges related to cost reduction actions | — | — | 6 | — | 6 | |||||||||||
Other (income) expenses, net | (10 | ) | 4 | — | — | (6 | ) | |||||||||
Total operating expenses | 15 | 85 | 47 | — | 147 | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (12 | ) | 97 | 21 | — | 106 | ||||||||||
Interest expense, net | 27 | — | 2 | — | 29 | |||||||||||
EARNINGS BEFORE TAXES | (39 | ) | 97 | 19 | — | 77 | ||||||||||
Less: Income tax expense | (16 | ) | 32 | 10 | — | 26 | ||||||||||
Equity in net earnings of subsidiaries | 74 | 9 | — | (83 | ) | — | ||||||||||
Equity in net earnings of affiliates | — | — | — | — | — | |||||||||||
NET EARNINGS | 51 | 74 | 9 | (83 | ) | 51 | ||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 51 | $ | 74 | $ | 9 | $ | (83 | ) | $ | 51 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF EARNINGS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET SALES | $ | — | $ | 2,800 | $ | 1,496 | $ | (281 | ) | $ | 4,015 | |||||
COST OF SALES | (9 | ) | 2,314 | 1,258 | (281 | ) | 3,282 | |||||||||
Gross margin | 9 | 486 | 238 | — | 733 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Marketing and administrative expenses | 84 | 191 | 97 | — | 372 | |||||||||||
Science and technology expenses | — | 44 | 13 | — | 57 | |||||||||||
Charges related to cost reduction actions | — | 1 | 30 | — | 31 | |||||||||||
Other (income) expenses, net | (14 | ) | 8 | (9 | ) | — | (15 | ) | ||||||||
Total operating expenses | 70 | 244 | 131 | — | 445 | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (61 | ) | 242 | 107 | — | 288 | ||||||||||
Interest expense, net | 80 | 2 | 4 | — | 86 | |||||||||||
EARNINGS BEFORE TAXES | (141 | ) | 240 | 103 | — | 202 | ||||||||||
Less: Income tax expense | (53 | ) | 46 | 16 | — | 9 | ||||||||||
Equity in net earnings of subsidiaries | 281 | 87 | — | (368 | ) | — | ||||||||||
Equity in net earnings of affiliates | — | — | 1 | — | 1 | |||||||||||
NET EARNINGS | 193 | 281 | 88 | (368 | ) | 194 | ||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 193 | $ | 281 | $ | 87 | $ | (368 | ) | $ | 193 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF EARNINGS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET SALES | $ | — | $ | 2,872 | $ | 1,451 | $ | (306 | ) | $ | 4,017 | |||||
COST OF SALES | (7 | ) | 2,340 | 1,257 | (306 | ) | 3,284 | |||||||||
Gross margin | 7 | 532 | 194 | — | 733 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Marketing and administrative expenses | 89 | 202 | 104 | — | 395 | |||||||||||
Science and technology expenses | — | 43 | 14 | — | 57 | |||||||||||
Charges related to cost reduction actions | — | — | 8 | — | 8 | |||||||||||
Other (income) expenses, net | (17 | ) | — | 9 | — | (8 | ) | |||||||||
Total operating expenses | 72 | 245 | 135 | — | 452 | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (65 | ) | 287 | 59 | — | 281 | ||||||||||
Interest expense, net | 81 | 1 | 5 | — | 87 | |||||||||||
EARNINGS BEFORE TAXES | (146 | ) | 286 | 54 | — | 194 | ||||||||||
Less: Income tax expense | (57 | ) | 91 | 37 | — | 71 | ||||||||||
Equity in net earnings of subsidiaries | 211 | 16 | — | (227 | ) | — | ||||||||||
Equity in net earnings of affiliates | — | — | — | — | — | |||||||||||
NET EARNINGS | 122 | 211 | 17 | (227 | ) | 123 | ||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 122 | $ | 211 | $ | 16 | $ | (227 | ) | $ | 122 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS | ||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET EARNINGS | $ | 52 | $ | 82 | $ | 13 | $ | (95 | ) | $ | 52 | |||||
Currency translation adjustment | (59 | ) | — | — | — | (59 | ) | |||||||||
Pension and other postretirement adjustment (net of tax) | 4 | — | — | — | 4 | |||||||||||
Deferred loss on hedging (net of tax) | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS | (3 | ) | 82 | 13 | (95 | ) | (3 | ) | ||||||||
Less: Comprehensive earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | (3 | ) | $ | 82 | $ | 13 | $ | (95 | ) | $ | (3 | ) | |||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS | ||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET EARNINGS | $ | 51 | $ | 74 | $ | 9 | $ | (83 | ) | $ | 51 | |||||
Currency translation adjustment | 15 | — | — | — | 15 | |||||||||||
Pension and other postretirement adjustment (net of tax) | 2 | — | — | — | 2 | |||||||||||
Deferred loss on hedging (net of tax) | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS | 68 | 74 | 9 | (83 | ) | 68 | ||||||||||
Less: Comprehensive earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 68 | $ | 74 | $ | 9 | $ | (83 | ) | $ | 68 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET EARNINGS | $ | 193 | $ | 281 | $ | 88 | $ | (368 | ) | $ | 194 | |||||
Currency translation adjustment | (64 | ) | — | — | — | (64 | ) | |||||||||
Pension and other postretirement adjustment (net of tax) | 6 | — | — | — | 6 | |||||||||||
Deferred loss on hedging (net of tax) | (1 | ) | — | — | — | (1 | ) | |||||||||
COMPREHENSIVE EARNINGS | 134 | 281 | 88 | (368 | ) | 135 | ||||||||||
Less: Comprehensive earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 134 | $ | 281 | $ | 87 | $ | (368 | ) | $ | 134 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET EARNINGS | $ | 122 | $ | 211 | $ | 17 | $ | (227 | ) | $ | 123 | |||||
Currency translation adjustment | (30 | ) | — | — | — | (30 | ) | |||||||||
Pension and other postretirement adjustment (net of tax) | 11 | — | — | — | 11 | |||||||||||
Deferred loss on hedging (net of tax) | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS | 103 | 211 | 17 | (227 | ) | 104 | ||||||||||
Less: Comprehensive earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 103 | $ | 211 | $ | 16 | $ | (227 | ) | $ | 103 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||
AS OF SEPTEMBER 30, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
ASSETS | Parent | Guarantor | Non- | Eliminations | Consolidated | |||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | — | $ | 6 | $ | 45 | $ | — | $ | 51 | ||||||
Receivables, less allowances | — | — | 904 | — | 904 | |||||||||||
Due from affiliates | — | 2,776 | — | (2,776 | ) | — | ||||||||||
Inventories | — | 508 | 315 | — | 823 | |||||||||||
Assets held for sale – current | — | — | 16 | — | 16 | |||||||||||
Other current assets | (2 | ) | 135 | 90 | — | 223 | ||||||||||
Total current assets | (2 | ) | 3,425 | 1,370 | (2,776 | ) | 2,017 | |||||||||
Investment in subsidiaries | 7,546 | 2,594 | 558 | (10,698 | ) | — | ||||||||||
Due from affiliates | — | 62 | 894 | (956 | ) | — | ||||||||||
Property, plant and equipment, net | 359 | 1,335 | 1,198 | — | 2,892 | |||||||||||
Goodwill | — | 1,127 | 41 | — | 1,168 | |||||||||||
Intangible assets | — | 995 | 248 | (218 | ) | 1,025 | ||||||||||
Deferred income taxes | 13 | 319 | 40 | — | 372 | |||||||||||
Other non-current assets | 25 | 61 | 135 | — | 221 | |||||||||||
TOTAL ASSETS | $ | 7,941 | $ | 9,918 | $ | 4,484 | $ | (14,648 | ) | $ | 7,695 | |||||
LIABILITIES AND EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 71 | $ | 500 | $ | 362 | $ | — | $ | 933 | ||||||
Due to affiliates | 1,789 | — | 987 | (2,776 | ) | — | ||||||||||
Short-term debt | — | — | 22 | — | 22 | |||||||||||
Long-term debt – current portion | — | 2 | 2 | — | 4 | |||||||||||
Total current liabilities | 1,860 | 502 | 1,373 | (2,776 | ) | 959 | ||||||||||
Long-term debt, net of current | 1,912 | 27 | 232 | — | 2,171 | |||||||||||
Due to affiliates | — | 894 | 62 | (956 | ) | — | ||||||||||
Pension plan liability | 179 | — | 106 | — | 285 | |||||||||||
Other employee benefits liability | — | 215 | 15 | — | 230 | |||||||||||
Deferred income taxes | — | — | 20 | — | 20 | |||||||||||
Other liabilities | 131 | 176 | 44 | (218 | ) | 133 | ||||||||||
OWENS CORNING STOCKHOLDERS’ EQUITY | ||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||
Common stock | 1 | — | — | — | 1 | |||||||||||
Additional paid in capital | 3,947 | 6,607 | 1,996 | (8,603 | ) | 3,947 | ||||||||||
Accumulated earnings | 791 | 1,497 | 598 | (2,095 | ) | 791 | ||||||||||
Accumulated other comprehensive deficit | (356 | ) | — | — | — | (356 | ) | |||||||||
Cost of common stock in treasury | (524 | ) | — | — | — | (524 | ) | |||||||||
Total Owens Corning stockholders’ equity | 3,859 | 8,104 | 2,594 | (10,698 | ) | 3,859 | ||||||||||
Noncontrolling interests | — | — | 38 | — | 38 | |||||||||||
Total equity | 3,859 | 8,104 | 2,632 | (10,698 | ) | 3,897 | ||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 7,941 | $ | 9,918 | $ | 4,484 | $ | (14,648 | ) | $ | 7,695 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||
AS OF DECEMBER 31, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
ASSETS | Parent | Guarantor | Non- | Eliminations | Consolidated | |||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3 | $ | 54 | $ | — | $ | 57 | ||||||
Receivables, less allowances | — | — | 683 | — | 683 | |||||||||||
Due from affiliates | — | 2,664 | — | (2,664 | ) | — | ||||||||||
Inventories | — | 487 | 323 | — | 810 | |||||||||||
Assets held for sale – current | — | — | 29 | — | 29 | |||||||||||
Other current assets | 45 | 140 | 84 | — | 269 | |||||||||||
Total current assets | 45 | 3,294 | 1,173 | (2,664 | ) | 1,848 | ||||||||||
Investment in subsidiaries | 7,229 | 2,558 | 558 | (10,345 | ) | — | ||||||||||
Due from affiliates | — | 67 | 959 | (1,026 | ) | — | ||||||||||
Property, plant and equipment, net | 362 | 1,313 | 1,257 | — | 2,932 | |||||||||||
Goodwill | — | 1,127 | 39 | — | 1,166 | |||||||||||
Intangible assets | — | 1,015 | 271 | (246 | ) | 1,040 | ||||||||||
Deferred income taxes | 14 | 416 | 6 | — | 436 | |||||||||||
Other non-current assets | 31 | 64 | 130 | — | 225 | |||||||||||
TOTAL ASSETS | $ | 7,681 | $ | 9,854 | $ | 4,393 | $ | (14,281 | ) | $ | 7,647 | |||||
LIABILITIES AND EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 15 | $ | 608 | $ | 365 | $ | — | $ | 988 | ||||||
Due to affiliates | 1,688 | — | 976 | (2,664 | ) | — | ||||||||||
Short-term debt | — | — | 1 | — | 1 | |||||||||||
Long-term debt – current portion | — | 2 | 1 | — | 3 | |||||||||||
Total current liabilities | 1,703 | 610 | 1,343 | (2,664 | ) | 992 | ||||||||||
Long-term debt, net of current portion | 1,814 | 26 | 184 | — | 2,024 | |||||||||||
Due to affiliates | — | 959 | 67 | (1,026 | ) | — | ||||||||||
Pension plan liability | 213 | — | 123 | — | 336 | |||||||||||
Other employee benefits liability | — | 226 | 16 | — | 242 | |||||||||||
Deferred income taxes | — | — | 23 | — | 23 | |||||||||||
Other liabilities | 158 | 246 | 42 | (246 | ) | 200 | ||||||||||
OWENS CORNING STOCKHOLDERS’ EQUITY | ||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||
Common stock | 1 | — | — | — | 1 | |||||||||||
Additional paid in capital | 3,938 | 6,572 | 2,045 | (8,617 | ) | 3,938 | ||||||||||
Accumulated earnings | 655 | 1,215 | 513 | (1,728 | ) | 655 | ||||||||||
Accumulated other comprehensive deficit | (297 | ) | — | — | — | (297 | ) | |||||||||
Cost of common stock in treasury | (504 | ) | — | — | — | (504 | ) | |||||||||
Total Owens Corning stockholders’ equity | 3,793 | 7,787 | 2,558 | (10,345 | ) | 3,793 | ||||||||||
Noncontrolling interests | — | — | 37 | — | 37 | |||||||||||
Total equity | 3,793 | 7,787 | 2,595 | (10,345 | ) | 3,830 | ||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 7,681 | $ | 9,854 | $ | 4,393 | $ | (14,281 | ) | $ | 7,647 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | $ | (54 | ) | $ | 131 | $ | (15 | ) | $ | — | $ | 62 | ||||
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||||||||||||||||
Additions to plant and equipment (including alloy) | (9 | ) | (120 | ) | (87 | ) | — | (216 | ) | |||||||
Proceeds from the sale of assets (including alloy) or affiliates, net | 44 | — | 21 | — | 65 | |||||||||||
Investment in subsidiaries and affiliates, net of cash acquired | — | (5 | ) | (7 | ) | — | (12 | ) | ||||||||
Proceeds from Hurricane Sandy insurance claims | — | — | — | — | — | |||||||||||
Derivative Settlement | — | — | 1 | — | 1 | |||||||||||
Purchases of alloy | — | — | (25 | ) | — | (25 | ) | |||||||||
Proceeds from sale of alloy | 4 | — | 21 | — | 25 | |||||||||||
Net cash flow used for investing activities | 39 | (125 | ) | (76 | ) | — | (162 | ) | ||||||||
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||||||||||||||||
Proceeds from senior revolving credit and receivables securitization facilities | 1,018 | — | 50 | — | 1,068 | |||||||||||
Payments on senior revolving credit and receivables securitization facilities | (919 | ) | — | — | — | (919 | ) | |||||||||
Payments on long-term debt | — | — | (1 | ) | — | (1 | ) | |||||||||
Net increase in short-term debt | — | — | 21 | — | 21 | |||||||||||
Cash dividends paid | (37 | ) | — | — | — | (37 | ) | |||||||||
Purchases of treasury stock | (44 | ) | — | — | — | (44 | ) | |||||||||
Other intercompany loans | (10 | ) | (3 | ) | 13 | — | — | |||||||||
Other | 7 | — | — | — | 7 | |||||||||||
Net cash flow provided by financing activities | 15 | (3 | ) | 83 | — | 95 | ||||||||||
Effect of exchange rate changes on cash | — | — | (1 | ) | — | (1 | ) | |||||||||
Net decrease in cash and cash equivalents | — | 3 | (9 | ) | — | (6 | ) | |||||||||
Cash and cash equivalents at beginning of period | — | 3 | 54 | — | 57 | |||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 6 | $ | 45 | $ | — | $ | 51 | ||||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | $ | (68 | ) | $ | 105 | $ | 121 | $ | — | $ | 158 | |||||
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||||||||||||||||
Additions to plant and equipment | (5 | ) | (70 | ) | (124 | ) | — | (199 | ) | |||||||
Proceeds from the sale of assets or affiliates, net | — | — | 17 | — | 17 | |||||||||||
Investment in subsidiaries and affiliates, net of cash acquired | — | (51 | ) | (11 | ) | — | (62 | ) | ||||||||
Proceeds from Hurricane Sandy insurance claims | — | 26 | — | — | 26 | |||||||||||
Derivative Settlement | — | — | — | — | — | |||||||||||
Purchases of alloy | — | — | (15 | ) | — | (15 | ) | |||||||||
Proceeds from sale of alloy | 16 | — | — | — | 16 | |||||||||||
Net cash flow used for investing activities | 11 | (95 | ) | (133 | ) | — | (217 | ) | ||||||||
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||||||||||||||||
Proceeds from senior revolving credit and receivables securitization facilities | 940 | — | 123 | — | 1,063 | |||||||||||
Payments on senior revolving credit and receivables securitization facilities | (906 | ) | — | (51 | ) | — | (957 | ) | ||||||||
Payments on long-term debt | — | — | (1 | ) | — | (1 | ) | |||||||||
Net increase in short-term debt | — | — | 3 | — | 3 | |||||||||||
Cash dividends paid | — | — | — | — | — | |||||||||||
Purchase of treasury stock | (63 | ) | — | — | — | (63 | ) | |||||||||
Other intercompany loans | 75 | (9 | ) | (66 | ) | — | — | |||||||||
Other | 12 | — | — | — | 12 | |||||||||||
Net cash flow provided by financing activities | 58 | (9 | ) | 8 | — | 57 | ||||||||||
Effect of exchange rate changes on cash | — | — | (2 | ) | — | (2 | ) | |||||||||
Net decrease in cash and cash equivalents | 1 | 1 | (6 | ) | — | (4 | ) | |||||||||
Cash and cash equivalents at beginning of period | — | 3 | 52 | — | 55 | |||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 1 | $ | 4 | $ | 46 | $ | — | $ | 51 | ||||||
SEGMENT_INFORMATION_TABLE
SEGMENT INFORMATION (TABLE) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Reconciliation of Revenue from Segments to Consolidated | ' | ||||||||||||
The following table summarizes our net sales by segment, geographic region and product group (in millions). External customer sales are attributed to geographic region based upon the location from which the product is shipped to the external customer. | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Reportable Segments | |||||||||||||
Composites | $ | 489 | $ | 453 | $ | 1,471 | $ | 1,384 | |||||
Building Materials | 928 | 902 | 2,664 | 2,762 | |||||||||
Total reportable segments | 1,417 | 1,355 | 4,135 | 4,146 | |||||||||
Corporate eliminations | (35 | ) | (35 | ) | (120 | ) | (129 | ) | |||||
NET SALES | $ | 1,382 | $ | 1,320 | $ | 4,015 | $ | 4,017 | |||||
Schedule of Revenues by Geographical Areas | ' | ||||||||||||
External Customer Sales by Geographic Region | |||||||||||||
United States | $ | 938 | $ | 909 | $ | 2,726 | $ | 2,797 | |||||
Europe | 142 | 135 | 451 | 412 | |||||||||
Asia Pacific | 168 | 156 | 474 | 455 | |||||||||
Other | 134 | 120 | 364 | 353 | |||||||||
NET SALES | $ | 1,382 | $ | 1,320 | $ | 4,015 | $ | 4,017 | |||||
Reconciliation of Revenue from Product Groups to Consolidated | ' | ||||||||||||
Sales by Product Group | |||||||||||||
Composites | $ | 489 | $ | 453 | $ | 1,471 | $ | 1,384 | |||||
Insulation | 454 | 431 | 1,256 | 1,176 | |||||||||
Roofing | 474 | 471 | 1,408 | 1,586 | |||||||||
Corporate Eliminations | (35 | ) | (35 | ) | (120 | ) | (129 | ) | |||||
NET SALES | $ | 1,382 | $ | 1,320 | $ | 4,015 | $ | 4,017 | |||||
Schedule of Earnings before Interest and Taxes | ' | ||||||||||||
The following table summarizes EBIT by segment (in millions): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Reportable Segments | |||||||||||||
Composites | $ | 32 | $ | 21 | $ | 96 | $ | 62 | |||||
Building Materials | 101 | 114 | 262 | 332 | |||||||||
Total reportable segments | $ | 133 | $ | 135 | $ | 358 | $ | 394 | |||||
Corporate, Other and Eliminations | |||||||||||||
Charges related to cost reduction actions and related items (a) | $ | (21 | ) | $ | (11 | ) | $ | (33 | ) | $ | (23 | ) | |
Net loss on sale of European Stone Business | (1 | ) | — | (20 | ) | — | |||||||
Impairment loss on Alcala, Spain facility held for sale | (3 | ) | — | (3 | ) | — | |||||||
Gain on sale of Hangzhou, China facility | — | — | 45 | — | |||||||||
Net loss related to Hurricane Sandy | — | (2 | ) | (6 | ) | (16 | ) | ||||||
General corporate expense and other | (1 | ) | (16 | ) | (53 | ) | (74 | ) | |||||
EBIT | $ | 107 | $ | 106 | $ | 288 | $ | 281 | |||||
(a) | For the three months ended September 30, 2014 and 2013, includes $19 million and $6 million, respectively, of charges related to cost reduction actions and $2 million and $5 million, respectively, of other related items. For the nine months ended September 30, 2014 and 2013, includes $31 million and $8 million, respectively, of charges related to cost reduction actions and $2 million and $15 million, respectively, of other related items. |
INVENTORIES_TABLE
INVENTORIES (TABLE) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Inventory Disclosure [Abstract] | ' | ||||||
Schedule of Inventory, Current | ' | ||||||
Inventories consist of the following (in millions): | |||||||
30-Sep-14 | 31-Dec-13 | ||||||
Finished goods | $ | 582 | $ | 580 | |||
Materials and supplies | 241 | 230 | |||||
Total inventories | $ | 823 | $ | 810 | |||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (TABLE) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||
Schedule of Derivative Assets and Liabilities at Fair Value | ' | |||||||||||||
The following table presents the fair value of derivatives and hedging instruments and the respective location on the Consolidated Balance Sheets (in millions): | ||||||||||||||
Fair Value at | ||||||||||||||
Location | 30-Sep-14 | 31-Dec-13 | ||||||||||||
Derivative assets designated as hedging instruments: | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Natural gas, electricity and foreign exchange contracts | Other current assets | $ | — | $ | 1 | |||||||||
Amount of gain recognized in Other comprehensive income (OCI) (effective portion) | OCI | $ | — | $ | 1 | |||||||||
Fair value hedges: | ||||||||||||||
Interest rate swaps | Other non-current assets | $ | 1 | $ | — | |||||||||
Derivative liabilities designated as hedging instruments: | ||||||||||||||
Cash flow hedges: | ||||||||||||||
Natural gas and electricity | Accounts payable and | $ | 1 | $ | — | |||||||||
accrued liabilities | ||||||||||||||
Amount of loss recognized in OCI (effective portion) | OCI | $ | 1 | $ | — | |||||||||
Fair value hedges: | ||||||||||||||
Interest rate swaps | Other liabilities | $ | — | $ | 3 | |||||||||
Derivative assets not designated as hedging instruments: | ||||||||||||||
Electricity and foreign exchange contracts | Other current assets | $ | 8 | $ | — | |||||||||
Derivative liabilities not designated as hedging instruments: | ||||||||||||||
Foreign exchange contracts | Accounts payable and | $ | 2 | $ | 1 | |||||||||
accrued liabilities | ||||||||||||||
Schedule of Fair Value Derivative Instruments Statements of Earnings Location | ' | |||||||||||||
The following table presents the impact and respective location of derivative activities on the Consolidated Statements of Earnings (in millions): | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
Location | 2014 | 2013 | 2014 | 2013 | ||||||||||
Derivative activity designated as hedging instruments: | ||||||||||||||
Natural gas and electricity: | ||||||||||||||
Amount of loss reclassified from OCI into earnings (effective portion) | Cost of sales | $ | 1 | $ | 1 | $ | — | $ | — | |||||
Interest rate swaps: | ||||||||||||||
Amount of gain recognized in earnings | Interest expense | $ | (1 | ) | $ | — | $ | — | $ | — | ||||
Derivative activity not designated as hedging instruments: | ||||||||||||||
Natural gas and electricity: | ||||||||||||||
Amount of (gain) loss recognized in earnings | Other (income) | $ | (5 | ) | $ | — | $ | (5 | ) | $ | — | |||
expenses, net | ||||||||||||||
Foreign currency exchange contract: | ||||||||||||||
Amount of loss recognized in earnings (a) | Other (income) | $ | — | $ | 1 | $ | 1 | $ | 12 | |||||
expenses, net | ||||||||||||||
(a) | Losses related to foreign currency derivatives were substantially offset by net revaluation impacts on foreign denominated balance sheet exposures, which were also recorded in other (income) expenses, net. |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (TABLE) | 9 Months Ended | |||||||||||
Sep. 30, 2014 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of Intangible Assets and Goodwill | ' | |||||||||||
Intangible assets and goodwill consist of the following (in millions): | ||||||||||||
30-Sep-14 | Weighted | Gross | Accumulated | Net Carrying | ||||||||
Average | Carrying | Amortization | Amount | |||||||||
Useful Life | Amount | |||||||||||
Amortizable intangible assets: | ||||||||||||
Customer relationships | 19 | $ | 172 | $ | (69 | ) | $ | 103 | ||||
Technology | 20 | 193 | (81 | ) | 112 | |||||||
Franchise and other agreements | 11 | 42 | (18 | ) | 24 | |||||||
Indefinite-lived intangible assets: | ||||||||||||
Trademarks | 786 | — | 786 | |||||||||
Total intangible assets | $ | 1,193 | $ | (168 | ) | $ | 1,025 | |||||
Goodwill | $ | 1,168 | ||||||||||
31-Dec-13 | Weighted | Gross | Accumulated | Net Carrying | ||||||||
Average | Carrying | Amortization | Amount | |||||||||
Useful Life | Amount | |||||||||||
Amortizable intangible assets: | ||||||||||||
Customer relationships | 19 | $ | 181 | $ | (68 | ) | $ | 113 | ||||
Technology | 20 | 194 | (74 | ) | 120 | |||||||
Franchise and other agreements | 14 | 37 | (16 | ) | 21 | |||||||
Indefinite-lived intangible assets: | ||||||||||||
Trademarks | 786 | — | 786 | |||||||||
Total intangible assets | $ | 1,198 | $ | (158 | ) | $ | 1,040 | |||||
Goodwill | $ | 1,166 | ||||||||||
Schedule of Goodwill | ' | |||||||||||
The changes in the net carrying amount of goodwill by segment are as follows (in millions): | ||||||||||||
Composites | Building Materials | Total | ||||||||||
Balance as of December 31, 2013 | $ | 57 | $ | 1,109 | $ | 1,166 | ||||||
Acquisitions (see Note 7) | — | 2 | 2 | |||||||||
Balance as of September 30, 2014 | $ | 57 | $ | 1,111 | $ | 1,168 | ||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (TABLE) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Property, Plant and Equipment [Abstract] | ' | ||||||
Property, Plant and Equipment | ' | ||||||
Property, plant and equipment consist of the following (in millions): | |||||||
September 30, | 31-Dec-13 | ||||||
2014 | |||||||
Land | $ | 200 | $ | 210 | |||
Buildings and leasehold improvements | 796 | 811 | |||||
Machinery and equipment | 3,408 | 3,353 | |||||
Construction in progress | 184 | 173 | |||||
4,588 | 4,547 | ||||||
Accumulated depreciation | (1,696 | ) | (1,615 | ) | |||
Property, plant and equipment, net | $ | 2,892 | $ | 2,932 | |||
WARRANTIES_TABLE
WARRANTIES (TABLE) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Product Warranties Disclosures [Abstract] | ' | |||
Schedule of Product Warranty Liability | ' | |||
The Company records a liability for warranty obligations at the date the related products are sold. Adjustments are made as new information becomes available. A reconciliation of the warranty liability is as follows (in millions): | ||||
Nine Months Ended September 30, 2014 | ||||
Beginning balance | $ | 41 | ||
Amounts accrued for current year | 17 | |||
Settlements of warranty claims | (21 | ) | ||
Ending balance | $ | 37 | ||
COST_REDUCTION_ACTIONS_TABLE
COST REDUCTION ACTIONS (TABLE) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Cost Reduction Actions 2014 | ' | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||
The following table summarizes the status of the unpaid accrued liabilities from the Company’s 2014 cost reduction actions (in millions): | ||||||||||||||||
Beginning | Costs | Payments | Ending | Cumulative | ||||||||||||
Balance | Incurred | Balance | Charges | |||||||||||||
December 31, | September 30, | Incurred | ||||||||||||||
2013 | 2014 | |||||||||||||||
Severance | $ | — | $ | 27 | $ | 2 | $ | 25 | $ | 27 | ||||||
Contract termination | — | 6 | 3 | 3 | 6 | |||||||||||
Total | $ | — | $ | 33 | $ | 5 | $ | 28 | $ | 33 | ||||||
Cost Reduction Actions 2013 | ' | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||
The following table summarizes the status of the unpaid accrued liabilities from the Company’s 2013 cost reduction actions (in millions): | ||||||||||||||||
Beginning | Costs | Payments | Ending | Cumulative | ||||||||||||
Balance | Incurred | Balance | Charges | |||||||||||||
December 31, | September 30, | Incurred | ||||||||||||||
2013 | 2014 | |||||||||||||||
Severance | $ | 6 | $ | (2 | ) | $ | 4 | $ | — | $ | 4 | |||||
Total | $ | 6 | $ | (2 | ) | $ | 4 | $ | — | $ | 4 | |||||
Cost Reduction Actions 2012 | ' | |||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | |||||||||||||||
The following table summarizes the status of the unpaid accrued liabilities from the Company’s 2012 cost reduction actions (in millions): | ||||||||||||||||
Beginning | Costs | Payments | Ending | Cumulative | ||||||||||||
Balance | Incurred | Balance | Charges | |||||||||||||
December 31, | September 30, | Incurred | ||||||||||||||
2013 | 2014 | |||||||||||||||
Severance | $ | 26 | $ | — | $ | 22 | $ | 4 | $ | 53 | ||||||
Total | $ | 26 | $ | — | $ | 22 | $ | 4 | $ | 53 | ||||||
DEBT_TABLE
DEBT (TABLE) | 9 Months Ended | ||||||
Sep. 30, 2014 | |||||||
Debt Disclosure [Abstract] | ' | ||||||
Schedule of Long-term Debt Instruments | ' | ||||||
Details of the Company’s outstanding long-term debt are as follows (in millions): | |||||||
30-Sep-14 | 31-Dec-13 | ||||||
6.5% senior notes, net of discount, due 2016 | $ | 400 | $ | 400 | |||
9.0% senior notes, net of discount, due 2019 | 248 | 248 | |||||
4.2% senior notes, net of discount, due 2022 | 600 | 599 | |||||
7.0% senior notes, net of discount, due 2036 | 540 | 540 | |||||
Accounts receivable securitization facility, maturing in 2016 | 212 | 162 | |||||
Senior revolving credit facility, maturing in 2018 | 111 | 12 | |||||
Various capital leases, due through and beyond 2050 | 48 | 49 | |||||
Various floating rate debt, maturing through 2017 | 1 | 1 | |||||
Fair value adjustment to debt | 15 | 16 | |||||
Total long-term debt | 2,175 | 2,027 | |||||
Less – current portion | 4 | 3 | |||||
Long-term debt, net of current portion | $ | 2,171 | $ | 2,024 | |||
PENSION_AND_OTHER_POSTRETIREME
PENSION AND OTHER POSTRETIREMENT BENEFITS (TABLE) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||
Pension Plan, Defined Benefit | ' | ||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ||||||||||||||||||
Schedule of Net Benefit Costs | ' | ||||||||||||||||||
The following tables provide information regarding pension expense recognized (in millions): | |||||||||||||||||||
Three Months Ended September 30, 2014 | Three Months Ended September 30, 2013 | ||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | ||||||||||||||
Components of Net Periodic Pension Cost | |||||||||||||||||||
Service cost | $ | 2 | $ | 2 | $ | 4 | $ | 2 | $ | — | $ | 2 | |||||||
Interest cost | 12 | 6 | 18 | 11 | 5 | 16 | |||||||||||||
Expected return on plan assets | (14 | ) | (7 | ) | (21 | ) | (14 | ) | (7 | ) | (21 | ) | |||||||
Amortization of actuarial loss | 2 | 1 | 3 | 4 | 1 | 5 | |||||||||||||
Net periodic pension cost | $ | 2 | $ | 2 | $ | 4 | $ | 3 | $ | (1 | ) | $ | 2 | ||||||
Nine Months Ended September 30, 2014 | Nine Months Ended September 30, 2013 | ||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | ||||||||||||||
Components of Net Periodic Pension Cost | |||||||||||||||||||
Service cost | $ | 6 | $ | 4 | $ | 10 | $ | 7 | $ | 4 | $ | 11 | |||||||
Interest cost | 36 | 17 | 53 | 33 | 16 | 49 | |||||||||||||
Expected return on plan assets | (43 | ) | (20 | ) | (63 | ) | (44 | ) | (19 | ) | (63 | ) | |||||||
Amortization of actuarial loss | 7 | 2 | 9 | 11 | 4 | 15 | |||||||||||||
Net periodic pension cost | $ | 6 | $ | 3 | $ | 9 | $ | 7 | $ | 5 | $ | 12 | |||||||
Other Postretirement Benefits Other Than Pensions | ' | ||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ||||||||||||||||||
Schedule of Net Benefit Costs | ' | ||||||||||||||||||
The following table provides the components of net periodic benefit cost for aggregated United States and non-United States Plans for the periods indicated (in millions): | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 2 | $ | 2 | |||||||||||
Interest cost | 3 | 2 | 8 | 7 | |||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | (3 | ) | (3 | ) | |||||||||||
Amortization of actuarial gain | (1 | ) | (1 | ) | (2 | ) | (1 | ) | |||||||||||
Net periodic benefit cost | $ | 2 | $ | 1 | $ | 5 | $ | 5 | |||||||||||
STOCK_COMPENSATION_TABLE
STOCK COMPENSATION (TABLE) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | ' | ||||||||||||
The following table summarizes the Company’s stock option activity for the nine months ended September 30, 2014: | |||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||
Number of | Weighted- | ||||||||||||
Options | Average | ||||||||||||
Exercise Price | |||||||||||||
Beginning Balance | 2,748,720 | $ | 29.55 | ||||||||||
Granted | 374,500 | 37.65 | |||||||||||
Exercised | (249,950 | ) | 28.11 | ||||||||||
Forfeited | (25,250 | ) | 38.09 | ||||||||||
Expired | (1,225 | ) | 32.23 | ||||||||||
Ending Balance | 2,846,795 | $ | 30.66 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | ' | ||||||||||||
The following table summarizes information about the Company’s options outstanding and exercisable: | |||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||
Options | Weighted-Average | Number | Weighted-Average | ||||||||||
Outstanding | Exercisable | ||||||||||||
at September 30, | |||||||||||||
Range of Exercise Prices | Remaining | Exercise | 2014 | Remaining | Exercise | ||||||||
Contractual Life | Price | Contractual Life | Price | ||||||||||
$13.89-$42.16 | 2,846,795 | 5.28 | $ | 30.66 | 2,016,445 | 3.99 | $ | 27.72 | |||||
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | ' | ||||||||||||
A summary of the status of the Company’s plans that had restricted stock issued as of September 30, 2014, and changes during the nine months ended September 30, 2014, are presented below: | |||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||
Number of Shares | Weighted-Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Beginning Balance | 1,735,824 | $ | 32.49 | ||||||||||
Granted | 488,257 | 37.85 | |||||||||||
Vested | (431,958 | ) | 32.67 | ||||||||||
Forfeited | (50,515 | ) | 37.04 | ||||||||||
Ending Balance | 1,741,608 | $ | 33.79 | ||||||||||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest | ' | ||||||||||||
A summary of the status of the Company’s plans that had PSUs issued as of September 30, 2014, and changes during the nine months ended September 30, 2014, is presented below: | |||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||
Number | Weighted-Average | ||||||||||||
of PSUs | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Beginning Balance | 410,500 | $ | 53.04 | ||||||||||
Granted | 248,950 | 44.43 | |||||||||||
Forfeited | (31,150 | ) | 40 | ||||||||||
Ending Balance | 628,300 | $ | 50.27 | ||||||||||
EARNINGS_PER_SHARE_TABLE
EARNINGS PER SHARE (TABLE) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | ' | ||||||||||||
The following table summarizes the number of shares outstanding as well as our basic and diluted earnings per-share (in millions, except per share amounts): | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
September 30, | September 30, | ||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||
Net earnings attributable to Owens Corning | $ | 52 | $ | 51 | $ | 193 | $ | 122 | |||||
Weighted-average number of shares outstanding used for basic earnings per share | 117.4 | 118 | 117.5 | 118.4 | |||||||||
Non-vested restricted and performance shares | 0.4 | 0.4 | 0.4 | 0.4 | |||||||||
Options to purchase common stock | 0.3 | 0.4 | 0.4 | 0.5 | |||||||||
Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share | 118.1 | 118.8 | 118.3 | 119.3 | |||||||||
Earnings per common share attributable to Owens Corning common stockholders: | |||||||||||||
Basic | $ | 0.44 | $ | 0.43 | $ | 1.64 | $ | 1.03 | |||||
Diluted | $ | 0.44 | $ | 0.43 | $ | 1.63 | $ | 1.02 | |||||
FAIR_VALUE_MEASUREMENT_TABLE
FAIR VALUE MEASUREMENT (TABLE) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | ' | ||||||||||||
The following table summarizes the fair values, and levels within the fair value hierarchy in which the fair value measurements fall, for assets and liabilities measured on a recurring basis as of September 30, 2014 (in millions): | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
Measured at | in Active | Other | Unobservable | ||||||||||
Fair Value | Markets for | Observable | Inputs | ||||||||||
Identical | Inputs | (Level 3) | |||||||||||
Assets | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents | $ | 10 | $ | 10 | $ | — | $ | — | |||||
Term deposits | 14 | 14 | — | — | |||||||||
Derivative assets | 9 | — | 9 | — | |||||||||
Total assets | $ | 33 | $ | 24 | $ | 9 | $ | — | |||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 3 | $ | — | $ | 3 | $ | — | |||||
Contingent consideration | 5 | — | — | 5 | |||||||||
Total liabilities | $ | 8 | $ | — | $ | 3 | $ | 5 | |||||
The following table summarizes the fair values, and levels within the fair value hierarchy in which the fair value measurements fall, for assets and liabilities measured on a recurring basis as of December 31, 2013 (in millions): | |||||||||||||
Total | Quoted Prices | Significant | Significant | ||||||||||
Measured at | in Active | Other | Unobservable | ||||||||||
Fair Value | Markets for | Observable | Inputs | ||||||||||
Identical | Inputs | (Level 3) | |||||||||||
Assets | (Level 2) | ||||||||||||
(Level 1) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents | $ | 20 | $ | 20 | $ | — | $ | — | |||||
Term deposits | 2 | 2 | — | — | |||||||||
Derivative assets | 1 | — | 1 | — | |||||||||
Total assets | $ | 23 | $ | 22 | $ | 1 | $ | — | |||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 4 | $ | — | $ | 4 | $ | — | |||||
Total liabilities | $ | 4 | $ | — | $ | 4 | $ | — | |||||
CHANGES_IN_ACCUMULATED_OTHER_C1
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
Changes In Accumulated Other Comprehensive Income | ' | |||||||||||||||
The following table summarizes the changes in accumulated other comprehensive income (“AOCI”) for the nine months ended September 30, 2013 (in millions): | ||||||||||||||||
Cash Flow | Defined | OCI | Foreign | Total | ||||||||||||
Hedge | Benefit | Valuation | Currency | |||||||||||||
Activity | Pension Plan | Allowance | Translation | |||||||||||||
Activity | Activity | Adjustment | ||||||||||||||
Balance as of December 31, 2012, net of tax | $ | (1 | ) | $ | (279 | ) | $ | (114 | ) | $ | 30 | $ | (364 | ) | ||
Amounts classified into AOCI, net of tax | (2 | ) | 2 | 1 | (30 | ) | (29 | ) | ||||||||
Amounts reclassified from AOCI, net of tax | 2 | 9 | — | — | 11 | |||||||||||
Change in AOCI, net of tax | — | 11 | 1 | (30 | ) | (18 | ) | |||||||||
Balance as of September 30, 2013, net of tax | $ | (1 | ) | $ | (268 | ) | $ | (113 | ) | $ | — | $ | (382 | ) | ||
The following table summarizes the changes in accumulated other comprehensive income (“AOCI”) for the nine months ended September 30, 2014 (in millions): | ||||||||||||||||
Cash Flow | Defined | OCI | Foreign | Total | ||||||||||||
Hedge | Benefit | Valuation | Currency | |||||||||||||
Activity | Pension Plan | Allowance | Translation | |||||||||||||
Activity | Activity | Adjustment | ||||||||||||||
Balance as of December 31, 2013, net of tax | $ | — | $ | (184 | ) | $ | (115 | ) | $ | 2 | $ | (297 | ) | |||
Amounts classified into AOCI, net of tax | (1 | ) | 2 | — | (65 | ) | (64 | ) | ||||||||
Amounts reclassified from AOCI, net of tax | — | 4 | — | 1 | 5 | |||||||||||
Change in AOCI, net of tax | (1 | ) | 6 | — | (64 | ) | (59 | ) | ||||||||
Balance as of September 30, 2014, net of tax | $ | (1 | ) | $ | (178 | ) | $ | (115 | ) | $ | (62 | ) | $ | (356 | ) | |
Reclassification out of Accumulated Other Comprehensive Income | ' | |||||||||||||||
The following table presents the impact and respective location of AOCI reclassifications on the Consolidated Statements of Earnings, net of tax (in millions): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Cash Flow Hedge Activity: | ||||||||||||||||
Cost of sales | $ | — | $ | 1 | $ | — | $ | 2 | ||||||||
Defined Benefit Pension Plan Activity: | ||||||||||||||||
Cost of sales | 1 | 2 | 3 | 7 | ||||||||||||
Marketing and administrative expense | — | — | 1 | 2 | ||||||||||||
Foreign Currency Translation Adjustment: | ||||||||||||||||
Other (income) expenses, net | 1 | — | 1 | — | ||||||||||||
Total reclassifications from AOCI | $ | 2 | $ | 3 | $ | 5 | $ | 11 | ||||||||
CONDENSED_CONSOLIDATING_FINANC
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (TABLE) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||
Condensed Consolidating Statement of Earnings | ' | |||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET SALES | $ | — | $ | 964 | $ | 511 | $ | (93 | ) | $ | 1,382 | |||||
COST OF SALES | (5 | ) | 795 | 434 | (93 | ) | 1,131 | |||||||||
Gross margin | 5 | 169 | 77 | — | 251 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Marketing and administrative expenses | 24 | 55 | 31 | — | 110 | |||||||||||
Science and technology expenses | — | 14 | 4 | — | 18 | |||||||||||
Charges related to cost reduction actions | — | — | 19 | — | 19 | |||||||||||
Other (income) expenses, net | 2 | (6 | ) | 1 | — | (3 | ) | |||||||||
Total operating expenses | 26 | 63 | 55 | — | 144 | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (21 | ) | 106 | 22 | — | 107 | ||||||||||
Interest expense, net | 26 | — | 2 | — | 28 | |||||||||||
EARNINGS BEFORE TAXES | (47 | ) | 106 | 20 | — | 79 | ||||||||||
Less: Income tax expense | (17 | ) | 37 | 7 | — | 27 | ||||||||||
Equity in net earnings of subsidiaries | 82 | 13 | — | (95 | ) | — | ||||||||||
Equity in net earnings of affiliates | — | — | — | — | — | |||||||||||
NET EARNINGS | 52 | 82 | 13 | (95 | ) | 52 | ||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 52 | $ | 82 | $ | 13 | $ | (95 | ) | $ | 52 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF EARNINGS | ||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET SALES | $ | — | $ | 921 | $ | 497 | $ | (98 | ) | $ | 1,320 | |||||
COST OF SALES | (3 | ) | 739 | 429 | (98 | ) | 1,067 | |||||||||
Gross margin | 3 | 182 | 68 | — | 253 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Marketing and administrative expenses | 25 | 68 | 35 | — | 128 | |||||||||||
Science and technology expenses | — | 13 | 6 | — | 19 | |||||||||||
Charges related to cost reduction actions | — | — | 6 | — | 6 | |||||||||||
Other (income) expenses, net | (10 | ) | 4 | — | — | (6 | ) | |||||||||
Total operating expenses | 15 | 85 | 47 | — | 147 | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (12 | ) | 97 | 21 | — | 106 | ||||||||||
Interest expense, net | 27 | — | 2 | — | 29 | |||||||||||
EARNINGS BEFORE TAXES | (39 | ) | 97 | 19 | — | 77 | ||||||||||
Less: Income tax expense | (16 | ) | 32 | 10 | — | 26 | ||||||||||
Equity in net earnings of subsidiaries | 74 | 9 | — | (83 | ) | — | ||||||||||
Equity in net earnings of affiliates | — | — | — | — | — | |||||||||||
NET EARNINGS | 51 | 74 | 9 | (83 | ) | 51 | ||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 51 | $ | 74 | $ | 9 | $ | (83 | ) | $ | 51 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF EARNINGS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET SALES | $ | — | $ | 2,800 | $ | 1,496 | $ | (281 | ) | $ | 4,015 | |||||
COST OF SALES | (9 | ) | 2,314 | 1,258 | (281 | ) | 3,282 | |||||||||
Gross margin | 9 | 486 | 238 | — | 733 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Marketing and administrative expenses | 84 | 191 | 97 | — | 372 | |||||||||||
Science and technology expenses | — | 44 | 13 | — | 57 | |||||||||||
Charges related to cost reduction actions | — | 1 | 30 | — | 31 | |||||||||||
Other (income) expenses, net | (14 | ) | 8 | (9 | ) | — | (15 | ) | ||||||||
Total operating expenses | 70 | 244 | 131 | — | 445 | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (61 | ) | 242 | 107 | — | 288 | ||||||||||
Interest expense, net | 80 | 2 | 4 | — | 86 | |||||||||||
EARNINGS BEFORE TAXES | (141 | ) | 240 | 103 | — | 202 | ||||||||||
Less: Income tax expense | (53 | ) | 46 | 16 | — | 9 | ||||||||||
Equity in net earnings of subsidiaries | 281 | 87 | — | (368 | ) | — | ||||||||||
Equity in net earnings of affiliates | — | — | 1 | — | 1 | |||||||||||
NET EARNINGS | 193 | 281 | 88 | (368 | ) | 194 | ||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 193 | $ | 281 | $ | 87 | $ | (368 | ) | $ | 193 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF EARNINGS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET SALES | $ | — | $ | 2,872 | $ | 1,451 | $ | (306 | ) | $ | 4,017 | |||||
COST OF SALES | (7 | ) | 2,340 | 1,257 | (306 | ) | 3,284 | |||||||||
Gross margin | 7 | 532 | 194 | — | 733 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Marketing and administrative expenses | 89 | 202 | 104 | — | 395 | |||||||||||
Science and technology expenses | — | 43 | 14 | — | 57 | |||||||||||
Charges related to cost reduction actions | — | — | 8 | — | 8 | |||||||||||
Other (income) expenses, net | (17 | ) | — | 9 | — | (8 | ) | |||||||||
Total operating expenses | 72 | 245 | 135 | — | 452 | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (65 | ) | 287 | 59 | — | 281 | ||||||||||
Interest expense, net | 81 | 1 | 5 | — | 87 | |||||||||||
EARNINGS BEFORE TAXES | (146 | ) | 286 | 54 | — | 194 | ||||||||||
Less: Income tax expense | (57 | ) | 91 | 37 | — | 71 | ||||||||||
Equity in net earnings of subsidiaries | 211 | 16 | — | (227 | ) | — | ||||||||||
Equity in net earnings of affiliates | — | — | — | — | — | |||||||||||
NET EARNINGS | 122 | 211 | 17 | (227 | ) | 123 | ||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 122 | $ | 211 | $ | 16 | $ | (227 | ) | $ | 122 | |||||
Condensed Consolidating Statement Of Comprehensive Earnings | ' | |||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET EARNINGS | $ | 52 | $ | 82 | $ | 13 | $ | (95 | ) | $ | 52 | |||||
Currency translation adjustment | (59 | ) | — | — | — | (59 | ) | |||||||||
Pension and other postretirement adjustment (net of tax) | 4 | — | — | — | 4 | |||||||||||
Deferred loss on hedging (net of tax) | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS | (3 | ) | 82 | 13 | (95 | ) | (3 | ) | ||||||||
Less: Comprehensive earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | (3 | ) | $ | 82 | $ | 13 | $ | (95 | ) | $ | (3 | ) | |||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS | ||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET EARNINGS | $ | 51 | $ | 74 | $ | 9 | $ | (83 | ) | $ | 51 | |||||
Currency translation adjustment | 15 | — | — | — | 15 | |||||||||||
Pension and other postretirement adjustment (net of tax) | 2 | — | — | — | 2 | |||||||||||
Deferred loss on hedging (net of tax) | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS | 68 | 74 | 9 | (83 | ) | 68 | ||||||||||
Less: Comprehensive earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 68 | $ | 74 | $ | 9 | $ | (83 | ) | $ | 68 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET EARNINGS | $ | 193 | $ | 281 | $ | 88 | $ | (368 | ) | $ | 194 | |||||
Currency translation adjustment | (64 | ) | — | — | — | (64 | ) | |||||||||
Pension and other postretirement adjustment (net of tax) | 6 | — | — | — | 6 | |||||||||||
Deferred loss on hedging (net of tax) | (1 | ) | — | — | — | (1 | ) | |||||||||
COMPREHENSIVE EARNINGS | 134 | 281 | 88 | (368 | ) | 135 | ||||||||||
Less: Comprehensive earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 134 | $ | 281 | $ | 87 | $ | (368 | ) | $ | 134 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET EARNINGS | $ | 122 | $ | 211 | $ | 17 | $ | (227 | ) | $ | 123 | |||||
Currency translation adjustment | (30 | ) | — | — | — | (30 | ) | |||||||||
Pension and other postretirement adjustment (net of tax) | 11 | — | — | — | 11 | |||||||||||
Deferred loss on hedging (net of tax) | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS | 103 | 211 | 17 | (227 | ) | 104 | ||||||||||
Less: Comprehensive earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 103 | $ | 211 | $ | 16 | $ | (227 | ) | $ | 103 | |||||
Condensed Consolidating Balance Sheet | ' | |||||||||||||||
ASSETS | Parent | Guarantor | Non- | Eliminations | Consolidated | |||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | — | $ | 6 | $ | 45 | $ | — | $ | 51 | ||||||
Receivables, less allowances | — | — | 904 | — | 904 | |||||||||||
Due from affiliates | — | 2,776 | — | (2,776 | ) | — | ||||||||||
Inventories | — | 508 | 315 | — | 823 | |||||||||||
Assets held for sale – current | — | — | 16 | — | 16 | |||||||||||
Other current assets | (2 | ) | 135 | 90 | — | 223 | ||||||||||
Total current assets | (2 | ) | 3,425 | 1,370 | (2,776 | ) | 2,017 | |||||||||
Investment in subsidiaries | 7,546 | 2,594 | 558 | (10,698 | ) | — | ||||||||||
Due from affiliates | — | 62 | 894 | (956 | ) | — | ||||||||||
Property, plant and equipment, net | 359 | 1,335 | 1,198 | — | 2,892 | |||||||||||
Goodwill | — | 1,127 | 41 | — | 1,168 | |||||||||||
Intangible assets | — | 995 | 248 | (218 | ) | 1,025 | ||||||||||
Deferred income taxes | 13 | 319 | 40 | — | 372 | |||||||||||
Other non-current assets | 25 | 61 | 135 | — | 221 | |||||||||||
TOTAL ASSETS | $ | 7,941 | $ | 9,918 | $ | 4,484 | $ | (14,648 | ) | $ | 7,695 | |||||
LIABILITIES AND EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 71 | $ | 500 | $ | 362 | $ | — | $ | 933 | ||||||
Due to affiliates | 1,789 | — | 987 | (2,776 | ) | — | ||||||||||
Short-term debt | — | — | 22 | — | 22 | |||||||||||
Long-term debt – current portion | — | 2 | 2 | — | 4 | |||||||||||
Total current liabilities | 1,860 | 502 | 1,373 | (2,776 | ) | 959 | ||||||||||
Long-term debt, net of current | 1,912 | 27 | 232 | — | 2,171 | |||||||||||
Due to affiliates | — | 894 | 62 | (956 | ) | — | ||||||||||
Pension plan liability | 179 | — | 106 | — | 285 | |||||||||||
Other employee benefits liability | — | 215 | 15 | — | 230 | |||||||||||
Deferred income taxes | — | — | 20 | — | 20 | |||||||||||
Other liabilities | 131 | 176 | 44 | (218 | ) | 133 | ||||||||||
OWENS CORNING STOCKHOLDERS’ EQUITY | ||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||
Common stock | 1 | — | — | — | 1 | |||||||||||
Additional paid in capital | 3,947 | 6,607 | 1,996 | (8,603 | ) | 3,947 | ||||||||||
Accumulated earnings | 791 | 1,497 | 598 | (2,095 | ) | 791 | ||||||||||
Accumulated other comprehensive deficit | (356 | ) | — | — | — | (356 | ) | |||||||||
Cost of common stock in treasury | (524 | ) | — | — | — | (524 | ) | |||||||||
Total Owens Corning stockholders’ equity | 3,859 | 8,104 | 2,594 | (10,698 | ) | 3,859 | ||||||||||
Noncontrolling interests | — | — | 38 | — | 38 | |||||||||||
Total equity | 3,859 | 8,104 | 2,632 | (10,698 | ) | 3,897 | ||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 7,941 | $ | 9,918 | $ | 4,484 | $ | (14,648 | ) | $ | 7,695 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||
AS OF DECEMBER 31, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
ASSETS | Parent | Guarantor | Non- | Eliminations | Consolidated | |||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | — | $ | 3 | $ | 54 | $ | — | $ | 57 | ||||||
Receivables, less allowances | — | — | 683 | — | 683 | |||||||||||
Due from affiliates | — | 2,664 | — | (2,664 | ) | — | ||||||||||
Inventories | — | 487 | 323 | — | 810 | |||||||||||
Assets held for sale – current | — | — | 29 | — | 29 | |||||||||||
Other current assets | 45 | 140 | 84 | — | 269 | |||||||||||
Total current assets | 45 | 3,294 | 1,173 | (2,664 | ) | 1,848 | ||||||||||
Investment in subsidiaries | 7,229 | 2,558 | 558 | (10,345 | ) | — | ||||||||||
Due from affiliates | — | 67 | 959 | (1,026 | ) | — | ||||||||||
Property, plant and equipment, net | 362 | 1,313 | 1,257 | — | 2,932 | |||||||||||
Goodwill | — | 1,127 | 39 | — | 1,166 | |||||||||||
Intangible assets | — | 1,015 | 271 | (246 | ) | 1,040 | ||||||||||
Deferred income taxes | 14 | 416 | 6 | — | 436 | |||||||||||
Other non-current assets | 31 | 64 | 130 | — | 225 | |||||||||||
TOTAL ASSETS | $ | 7,681 | $ | 9,854 | $ | 4,393 | $ | (14,281 | ) | $ | 7,647 | |||||
LIABILITIES AND EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 15 | $ | 608 | $ | 365 | $ | — | $ | 988 | ||||||
Due to affiliates | 1,688 | — | 976 | (2,664 | ) | — | ||||||||||
Short-term debt | — | — | 1 | — | 1 | |||||||||||
Long-term debt – current portion | — | 2 | 1 | — | 3 | |||||||||||
Total current liabilities | 1,703 | 610 | 1,343 | (2,664 | ) | 992 | ||||||||||
Long-term debt, net of current portion | 1,814 | 26 | 184 | — | 2,024 | |||||||||||
Due to affiliates | — | 959 | 67 | (1,026 | ) | — | ||||||||||
Pension plan liability | 213 | — | 123 | — | 336 | |||||||||||
Other employee benefits liability | — | 226 | 16 | — | 242 | |||||||||||
Deferred income taxes | — | — | 23 | — | 23 | |||||||||||
Other liabilities | 158 | 246 | 42 | (246 | ) | 200 | ||||||||||
OWENS CORNING STOCKHOLDERS’ EQUITY | ||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||
Common stock | 1 | — | — | — | 1 | |||||||||||
Additional paid in capital | 3,938 | 6,572 | 2,045 | (8,617 | ) | 3,938 | ||||||||||
Accumulated earnings | 655 | 1,215 | 513 | (1,728 | ) | 655 | ||||||||||
Accumulated other comprehensive deficit | (297 | ) | — | — | — | (297 | ) | |||||||||
Cost of common stock in treasury | (504 | ) | — | — | — | (504 | ) | |||||||||
Total Owens Corning stockholders’ equity | 3,793 | 7,787 | 2,558 | (10,345 | ) | 3,793 | ||||||||||
Noncontrolling interests | — | — | 37 | — | 37 | |||||||||||
Total equity | 3,793 | 7,787 | 2,595 | (10,345 | ) | 3,830 | ||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 7,681 | $ | 9,854 | $ | 4,393 | $ | (14,281 | ) | $ | 7,647 | |||||
Condensed Consolidating Statement of Cash Flows | ' | |||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | $ | (54 | ) | $ | 131 | $ | (15 | ) | $ | — | $ | 62 | ||||
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||||||||||||||||
Additions to plant and equipment (including alloy) | (9 | ) | (120 | ) | (87 | ) | — | (216 | ) | |||||||
Proceeds from the sale of assets (including alloy) or affiliates, net | 44 | — | 21 | — | 65 | |||||||||||
Investment in subsidiaries and affiliates, net of cash acquired | — | (5 | ) | (7 | ) | — | (12 | ) | ||||||||
Proceeds from Hurricane Sandy insurance claims | — | — | — | — | — | |||||||||||
Derivative Settlement | — | — | 1 | — | 1 | |||||||||||
Purchases of alloy | — | — | (25 | ) | — | (25 | ) | |||||||||
Proceeds from sale of alloy | 4 | — | 21 | — | 25 | |||||||||||
Net cash flow used for investing activities | 39 | (125 | ) | (76 | ) | — | (162 | ) | ||||||||
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||||||||||||||||
Proceeds from senior revolving credit and receivables securitization facilities | 1,018 | — | 50 | — | 1,068 | |||||||||||
Payments on senior revolving credit and receivables securitization facilities | (919 | ) | — | — | — | (919 | ) | |||||||||
Payments on long-term debt | — | — | (1 | ) | — | (1 | ) | |||||||||
Net increase in short-term debt | — | — | 21 | — | 21 | |||||||||||
Cash dividends paid | (37 | ) | — | — | — | (37 | ) | |||||||||
Purchases of treasury stock | (44 | ) | — | — | — | (44 | ) | |||||||||
Other intercompany loans | (10 | ) | (3 | ) | 13 | — | — | |||||||||
Other | 7 | — | — | — | 7 | |||||||||||
Net cash flow provided by financing activities | 15 | (3 | ) | 83 | — | 95 | ||||||||||
Effect of exchange rate changes on cash | — | — | (1 | ) | — | (1 | ) | |||||||||
Net decrease in cash and cash equivalents | — | 3 | (9 | ) | — | (6 | ) | |||||||||
Cash and cash equivalents at beginning of period | — | 3 | 54 | — | 57 | |||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 6 | $ | 45 | $ | — | $ | 51 | ||||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | $ | (68 | ) | $ | 105 | $ | 121 | $ | — | $ | 158 | |||||
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||||||||||||||||
Additions to plant and equipment | (5 | ) | (70 | ) | (124 | ) | — | (199 | ) | |||||||
Proceeds from the sale of assets or affiliates, net | — | — | 17 | — | 17 | |||||||||||
Investment in subsidiaries and affiliates, net of cash acquired | — | (51 | ) | (11 | ) | — | (62 | ) | ||||||||
Proceeds from Hurricane Sandy insurance claims | — | 26 | — | — | 26 | |||||||||||
Derivative Settlement | — | — | — | — | — | |||||||||||
Purchases of alloy | — | — | (15 | ) | — | (15 | ) | |||||||||
Proceeds from sale of alloy | 16 | — | — | — | 16 | |||||||||||
Net cash flow used for investing activities | 11 | (95 | ) | (133 | ) | — | (217 | ) | ||||||||
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||||||||||||||||
Proceeds from senior revolving credit and receivables securitization facilities | 940 | — | 123 | — | 1,063 | |||||||||||
Payments on senior revolving credit and receivables securitization facilities | (906 | ) | — | (51 | ) | — | (957 | ) | ||||||||
Payments on long-term debt | — | — | (1 | ) | — | (1 | ) | |||||||||
Net increase in short-term debt | — | — | 3 | — | 3 | |||||||||||
Cash dividends paid | — | — | — | — | — | |||||||||||
Purchase of treasury stock | (63 | ) | — | — | — | (63 | ) | |||||||||
Other intercompany loans | 75 | (9 | ) | (66 | ) | — | — | |||||||||
Other | 12 | — | — | — | 12 | |||||||||||
Net cash flow provided by financing activities | 58 | (9 | ) | 8 | — | 57 | ||||||||||
Effect of exchange rate changes on cash | — | — | (2 | ) | — | (2 | ) | |||||||||
Net decrease in cash and cash equivalents | 1 | 1 | (6 | ) | — | (4 | ) | |||||||||
Cash and cash equivalents at beginning of period | — | 3 | 52 | — | 55 | |||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 1 | $ | 4 | $ | 46 | $ | — | $ | 51 | ||||||
GENERAL_DETAIL
GENERAL (DETAIL) (USD $) | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Normal Purchase Normal Sale | Normal Purchase Normal Sale | Normal Purchase Normal Sale | Normal Purchase Normal Sale | Normal Purchase Normal Sale | Normal Purchase Normal Sale | Normal Purchase Normal Sale | |||
Before tax | Before tax | Before tax | Before tax | Before tax | After Tax | After Tax | |||
Prior Period Reclassification Adjustment | $5 | $11 | $7 | $2 | ($8) | ($1) | $1 | $5 | $1 |
SEGMENT_INFORMATION_DETAIL
SEGMENT INFORMATION (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
segment | |||||||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
NET SALES | $1,382 | ' | $1,320 | $4,015 | $4,017 | ||||
Income (loss) from Reportable Segments | 133 | ' | 135 | 358 | 394 | ||||
Restructuring Charges and Related Items | -21 | [1] | ' | -11 | [1] | -33 | [1] | -23 | [1] |
Net loss related to Hurricane Sandy | 0 | ' | -2 | -6 | -16 | ||||
General corporate expense and other | -1 | ' | -16 | -53 | -74 | ||||
EBIT | 107 | ' | 106 | 288 | 281 | ||||
Charges related to cost reduction actions | 19 | 2 | 6 | 31 | 8 | ||||
Other costs related to restructuring | 2 | ' | 5 | 2 | 15 | ||||
Number of Reportable Segments | ' | ' | ' | 2 | ' | ||||
United States | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | 938 | ' | 909 | 2,726 | 2,797 | ||||
Europe | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | 142 | ' | 135 | 451 | 412 | ||||
Asia Pacific | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | 168 | ' | 156 | 474 | 455 | ||||
Other Geographical | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | 134 | ' | 120 | 364 | 353 | ||||
Composites | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | 489 | ' | 453 | 1,471 | 1,384 | ||||
Income (loss) from Reportable Segments | 32 | ' | 21 | 96 | 62 | ||||
Building Materials | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | 928 | ' | 902 | 2,664 | 2,762 | ||||
Income (loss) from Reportable Segments | 101 | ' | 114 | 262 | 332 | ||||
Total Segments | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | 1,417 | ' | 1,355 | 4,135 | 4,146 | ||||
Corporate Eliminations | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | -35 | ' | -35 | -120 | -129 | ||||
Insulation | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | 454 | ' | 431 | 1,256 | 1,176 | ||||
Roofing | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Revenues | 474 | ' | 471 | 1,408 | 1,586 | ||||
European Stone | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Restructuring Charges and Related Items | -1 | ' | 0 | -20 | 0 | ||||
Hangzhou | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Restructuring Charges and Related Items | 0 | ' | 0 | 45 | 0 | ||||
Alcala Assets Held For Sale | ' | ' | ' | ' | ' | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ' | ' | ' | ' | ' | ||||
Restructuring Charges and Related Items | ($3) | ' | $0 | ($3) | $0 | ||||
[1] | For the three months ended September 30, 2014 and 2013, includes $19 million and $6 million, respectively, of charges related to cost reduction actions and $2 million and $5 million, respectively, of other related items. For the nine months ended September 30, 2014 and 2013, includes $31 million and $8 million, respectively, of charges related to cost reduction actions and $2 million and $15 million, respectively, of other related items. |
INVENTORIES_DETAIL
INVENTORIES (DETAIL) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Finished goods | $582 | $580 |
Materials and supplies | 241 | 230 |
Total inventories | $823 | $810 |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS BALANCE SHEET (DETAIL) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Derivatives, Fair Value [Line Items] | ' | ' |
Loss Recognized in OCI, Effective Portion | $1 | ' |
Two Months | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Percent of exposures hedged | 0 | ' |
Exposure Time | '2 months | ' |
Four Months | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Percent of exposures hedged | 0 | ' |
Exposure Time | '4 months | ' |
Natural Gas Contract | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative, Remaining Maturity | '15 months | ' |
Interest Rate Swap | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liability, Fair Value, Net | 0 | 3 |
Other Current Assets | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Net | 0 | 1 |
Other Current Assets | Nondesignated | Electricity and Foreign Exchange Contracts [Member] | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liability, Fair Value, Net | 8 | 0 |
Other Comprehensive Income | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Net | 0 | 1 |
Other Comprehensive Income | Designated as Hedging Instrument | Cash Flow Hedging | Natural Gas Contract | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Loss Recognized in OCI, Effective Portion | 1 | 0 |
Accounts Payable and Accrued Liabilities | Designated as Hedging Instrument | Cash Flow Hedging | Natural Gas Contract | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liability, Fair Value, Net | 1 | 0 |
Accounts Payable and Accrued Liabilities | Nondesignated | Foreign Exchange Contract | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Liability, Fair Value, Net | 2 | 1 |
Other Noncurrent Assets | Designated as Hedging Instrument | Interest Rate Swap | ' | ' |
Derivatives, Fair Value [Line Items] | ' | ' |
Derivative Asset, Fair Value, Net | $1 | $0 |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS INCOME STATEMENT (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Cost Of Sales | Designated as Hedging Instrument | Natural Gas Contract | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
Amount of loss reclassified from OCI into earnings (effective portion) | $1 | $1 | $0 | $0 | ||||
Interest Expense | Designated as Hedging Instrument | Interest Rate Swap | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
Amount of gain recognized in earnings | -1 | 0 | 0 | 0 | ||||
Other Expense | Nondesignated | Natural Gas Contract | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
Amount of (gain) loss recognized in earnings | -5 | 0 | -5 | 0 | ||||
Other Expense | Nondesignated | Foreign Exchange Contract | ' | ' | ' | ' | ||||
Derivative Instruments Gain Loss [Line Items] | ' | ' | ' | ' | ||||
Amount of loss recognized in earnings (a) | $0 | [1] | $1 | [1] | $1 | [1] | $12 | [1] |
[1] | Losses related to foreign currency derivatives were substantially offset by net revaluation impacts on foreign denominated balance sheet exposures, which were also recorded in other (income) expenses, net. |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (DETAIL) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ' | ' |
Balance as of December 31, 2013 | $1,166 | ' |
Acquisitions (see Note 7) | 2 | ' |
Balance as of September 30, 2014 | 1,168 | ' |
Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 1,193 | 1,198 |
Accumulated amortization | -168 | -158 |
Intangible assets | 1,025 | 1,040 |
Intangible assets amortization expense remainder of year | 22 | ' |
Intangible assets amortization expense year two | 22 | ' |
Intangible assets amortization expense year three | 22 | ' |
Intangible assets amortization expense year four | 22 | ' |
Intangible assets amortization expense year five | 22 | ' |
Customer Relationships | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Weighted average useful life | '19 years 0 months 0 days | '19 years 0 months 0 days |
Gross carrying amount | 172 | 181 |
Accumulated amortization | -69 | -68 |
Net carrying amount | 103 | 113 |
Technology | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Weighted average useful life | '20 years 0 months 0 days | '20 years 0 months 0 days |
Gross carrying amount | 193 | 194 |
Accumulated amortization | -81 | -74 |
Net carrying amount | 112 | 120 |
Franchise and Other Agreements | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Weighted average useful life | '11 years 0 months 0 days | '14 years 0 months 0 days |
Gross carrying amount | 42 | 37 |
Accumulated amortization | -18 | -16 |
Net carrying amount | 24 | 21 |
Trademarks | ' | ' |
Intangible Assets [Line Items] | ' | ' |
Gross carrying amount | 786 | 786 |
Indefinite-lived intangible assets | 786 | 786 |
Composite for Goodwill | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Balance as of December 31, 2013 | 57 | ' |
Acquisitions (see Note 7) | 0 | ' |
Balance as of September 30, 2014 | 57 | ' |
Building Materials | ' | ' |
Goodwill [Roll Forward] | ' | ' |
Balance as of December 31, 2013 | 1,109 | ' |
Acquisitions (see Note 7) | 2 | ' |
Balance as of September 30, 2014 | $1,111 | ' |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (DETAIL) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Property Plant And Equipment Gross | $4,588 | $4,547 |
Accumulated depreciation | -1,696 | -1,615 |
Property, plant and equipment, net | 2,892 | 2,932 |
Precious Metals Percentage | 17.00% | 17.00% |
Precious Metals Depletion Percentage | 3.00% | ' |
Land | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property Plant And Equipment Gross | 200 | 210 |
Buildings and Leasehold Improvements | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property Plant And Equipment Gross | 796 | 811 |
Machinery And Equipment | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property Plant And Equipment Gross | 3,408 | 3,353 |
Construction In Progress | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Property Plant And Equipment Gross | $184 | $173 |
ACQUISITIONS_AQUISITIONS_DETAI
ACQUISITIONS AQUISITIONS (DETAIL) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Investments, All Other Investments [Abstract] | ' |
Value of consideration given | $12 |
Acquisition cash payments cost | 7 |
Acquisition put/call options cost | 5 |
Acquisition intangible assets acquired | 4 |
Acquisition goodwill acquired | $2 |
DIVESTITURES_DETAIL
DIVESTITURES (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 13, 2013 |
Sale of Masonry Products | Sale of Masonry Products | Sale of European Assets and Liabilities | Sale of Hangzhou Facility | Sale of Hangzhou Facility | |
Business Divestitures [Line Items] | ' | ' | ' | ' | ' |
Divestiture, Amount of Consideration Received | $2 | $44 | ' | ' | ' |
Gain Loss On Disposition Of Assets | ' | ' | 20 | 45 | ' |
Divestiture, Amount of Future Consideration Receivable | ' | ' | ' | $14 | $70 |
ASSETS_HELD_FOR_SALE_DETAIL
ASSETS HELD FOR SALE (DETAIL) (USD $) | Dec. 31, 2013 | Sep. 30, 2014 |
In Millions, unless otherwise specified | Vado Assets Held For Sale | Alcala Assets Held For Sale |
Assets Held For Sale [Line Items] | ' | ' |
Assets Held For Sale, Property Plant and Equipment | $7 | $9 |
WARRANTIES_DETAIL
WARRANTIES (DETAIL) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Movement In Standard And Extended Product Warranty Increase Decrease Roll Forward | ' |
Product Warranty Accrual, Beginning Balance | $41 |
Amounts accrued for current year | 17 |
Settlements of warranty claims | -21 |
Product Warranty Accrual, Ending Balance | $37 |
COST_REDUCTION_ACTIONS_DETAIL
COST REDUCTION ACTIONS (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 |
Cost Reduction Actions 2014 | Cost Reduction Actions 2014 | Cost Reduction Actions 2014 | Cost Reduction Actions 2013 | Employee Severance | Employee Severance | Employee Severance | Employee Severance | Employee Severance | Employee Severance | Employee Severance | Employee Severance | Employee Severance | Contract Termination | Contract Termination | Contract Termination | ||||||
Foreign Currency Gain (Loss) | Other Cost Reduction Actions | Cost Reduction Actions 2014 | Cost Reduction Actions 2014 | Cost Reduction Actions 2014 | Cost Reduction Actions 2014 | Cost Reduction Actions 2013 | Cost Reduction Actions 2013 | Cost Reduction Actions 2013 | Cost Reduction Actions 2012 | Cost Reduction Actions 2014 | Cost Reduction Actions 2014 | ||||||||||
Composite | Composite | Foreign Currency Gain (Loss) | Composite | Foreign Currency Gain (Loss) | |||||||||||||||||
Restructuring Reserve Roll Forward | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring Reserve, Beginning Balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | $0 | ' | $0 | $6 | ' | $26 | ' | $0 | ' |
Costs incurred | ' | ' | ' | ' | ' | 33 | ' | 14 | 6 | ' | 27 | ' | ' | ' | ' | ' | -2 | 0 | ' | 6 | ' |
Payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | 5 | ' | ' | ' | ' | 4 | 22 | ' | 3 | ' |
Charges related to cost reduction actions | 19 | 2 | 6 | 31 | 8 | ' | 28 | ' | ' | ' | ' | ' | ' | 25 | ' | ' | ' | ' | ' | ' | 3 |
Restructuring Reserve, Ending Balance | ' | ' | ' | ' | ' | 33 | ' | ' | ' | ' | 27 | ' | 0 | ' | 0 | 6 | ' | 4 | ' | 6 | ' |
Cumulative charges incurred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 53 | ' | ' | ' |
Severance Costs | 16 | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on contract termination for default | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other costs related to restructuring | $2 | ' | $5 | $2 | $15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3 | ' | ' |
DEBT_DETAIL
DEBT (DETAIL) (USD $) | 0 Months Ended | 0 Months Ended | 0 Months Ended | |||||||||||||||||||||||||||||
Oct. 17, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 31, 2006 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Oct. 31, 2006 | Jun. 03, 2009 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 03, 2009 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Jun. 28, 2013 | Oct. 17, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Oct. 31, 2006 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Oct. 17, 2012 | Sep. 30, 2014 | Dec. 31, 2013 | Nov. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | |
Senior Notes Due 2016 | Senior Notes Due 2016 | Senior Notes Due 2016 | Senior Notes Due 2016 | Senior Notes Due 2016 | Senior Notes Due 2019 | Senior Notes Due 2019 | Senior Notes Due 2019 | Senior Notes Due 2019 | Senior Notes Due 2022 | Senior Notes Due 2022 | Senior Notes Due 2022 | Senior Notes Due 2022 | Senior Notes Due 2022 | Senior Notes Due 2036 | Senior Notes Due 2036 | Senior Notes Due 2036 | Letter Of Credit Under Receivables Purchase Agreement | Letter Of Credit Under Receivables Purchase Agreement | Letter Of Credit Under Receivables Purchase Agreement | Letter Of Credit Under Receivables Purchase Agreement | Senior Revolving Credit Facility B | Senior Revolving Credit Facility B | Senior Revolving Credit Facility B | Capital Lease Obligations | Capital Lease Obligations | Floating Rate Debt | Floating Rate Debt | Letter Of Credit | ||||
Long-Term Debt [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long Term Debt | ' | $2,175,000,000 | $2,027,000,000 | ' | $400,000,000 | $400,000,000 | ' | $650,000,000 | ' | $248,000,000 | $248,000,000 | ' | $600,000,000 | $599,000,000 | ' | ' | ' | $540,000,000 | $540,000,000 | $540,000,000 | $212,000,000 | $162,000,000 | ' | ' | $111,000,000 | $12,000,000 | ' | $48,000,000 | $49,000,000 | $1,000,000 | $1,000,000 | ' |
Fair Value Adjustment to Debt | ' | 15,000,000 | 16,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long Term Debt Current | ' | 4,000,000 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000,000 | ' | 200,000,000 | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Long Term Debt Noncurrent | ' | 2,171,000,000 | 2,024,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Face Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350,000,000 | ' | ' | ' | ' | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument Issuance Date | 17-Oct-12 | ' | ' | 31-Oct-06 | ' | ' | ' | ' | 3-Jun-09 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Rate Swap Agreement, Principal Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | 100,000,000 | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | ' | ' | ' | ' | 6.50% | 6.50% | 6.50% | ' | ' | 9.00% | 9.00% | ' | 4.20% | 4.20% | ' | 4.20% | ' | 7.00% | 7.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line Of Credit Facility Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800,000,000 | ' | ' | ' | ' | ' |
Line Of Credit Facility Amount Outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 |
Short-term debt | ' | $22,000,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term Debt, Weighted Average Interest Rate | ' | 3.70% | 2.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PENSION_PLANS_AND_OTHER_POSTRE1
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Service cost | $4 | $2 | $10 | $11 |
Interest cost | 18 | 16 | 53 | 49 |
Expected return on plan assets | -21 | -21 | -63 | -63 |
Amortization of actuarial loss | 3 | 5 | 9 | 15 |
Net periodic pension cost | 4 | 2 | 9 | 12 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ' | ' | ' | ' |
Defined Benefit Plan, Contributions by Employer | ' | ' | 51 | ' |
United States Pension Plans Of US Entity Defined Benefit | ' | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Service cost | 2 | 2 | 6 | 7 |
Interest cost | 12 | 11 | 36 | 33 |
Expected return on plan assets | -14 | -14 | -43 | -44 |
Amortization of actuarial loss | 2 | 4 | 7 | 11 |
Net periodic pension cost | 2 | 3 | 6 | 7 |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | ' | ' | ' | ' |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | ' | ' | 35 | ' |
Foreign Pension Plans Defined Benefit | ' | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Service cost | 2 | 0 | 4 | 4 |
Interest cost | 6 | 5 | 17 | 16 |
Expected return on plan assets | -7 | -7 | -20 | -19 |
Amortization of actuarial loss | 1 | 1 | 2 | 4 |
Net periodic pension cost | 2 | -1 | 3 | 5 |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | ' | ' | ' | ' |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | ' | ' | 18 | ' |
Other Postretirement Benefit Plans, Defined Benefit | ' | ' | ' | ' |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ' | ' | ' | ' |
Service cost | 1 | 1 | 2 | 2 |
Interest cost | 3 | 2 | 8 | 7 |
Amortization of actuarial loss | -1 | -1 | -2 | -1 |
Amortization of prior service cost | -1 | -1 | -3 | -3 |
Net periodic pension cost | $2 | $1 | $5 | $5 |
CONTINGENT_LIABILITIES_AND_OTH1
CONTINGENT LIABILITIES AND OTHER MATTERS (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Unusual or Infrequent Item [Line Items] | ' | ' | ' | ' |
Environmental Liability Sites | 21 | ' | 21 | ' |
Environmental Exit Costs, Reasonably Possible Additional Losses, Best Estimate | ' | ' | $4 | ' |
Hurricane Sandy | ' | ' | ' | ' |
Unusual or Infrequent Item [Line Items] | ' | ' | ' | ' |
Loss from Catastrophes | 0 | 2 | 6 | 16 |
Loss from Catastrophes Reported in Other (income) expenses | ' | 2 | 5 | 10 |
Loss from Catastrophes Reported in Cost of Sales | ' | $4 | $1 | $26 |
STOCK_COMPENSATION_DETAIL
STOCK COMPENSATION (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 18, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant | 2,400,000 | ' | 2,400,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | '4 years | ' | ' |
Performance Stock Payout Minimum | ' | ' | 0 | ' | ' |
Performance Stock Payout Range Maximum | ' | ' | 2 | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value | ' | $25 | ' | $25 | ' |
Performance Stock Paid in Stock | ' | ' | 0.5 | ' | ' |
Performance Stock Paid in Cash | ' | ' | 0.5 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | ' | ' | ' | ' | 85.00% |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Additional Disclosures Abstract | ' | ' | ' | ' | ' |
Number of shares granted | ' | ' | 248,950 | ' | ' |
Number of shares forfeited | ' | ' | -31,150 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' | ' | ' | ' | ' |
Weighted average fair value of grants | ' | ' | $44.43 | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | ' | ' | ' | ' | ' |
Share-based compensation number of options beginning balance | ' | ' | 2,748,720 | ' | ' |
Grants in period number of options | ' | ' | 374,500 | ' | ' |
Exercises in period number of options | ' | ' | -249,950 | ' | ' |
Forfeitures in period number of options | ' | ' | -25,250 | ' | ' |
Expirations in period number of options | ' | ' | -1,225 | ' | ' |
Share-based compensation number of options ending balance | 2,846,795 | ' | 2,846,795 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | $29.55 | ' | ' |
Grants in period weighted average exercise price | ' | ' | $37.65 | ' | ' |
Exercises in period weighted average exercise price | ' | ' | $28.11 | ' | ' |
Forfeitures n period weighted average exercise price | ' | ' | $38.09 | ' | ' |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | ' | ' | $32.23 | ' | ' |
Ending Balance | $30.66 | ' | $30.66 | ' | ' |
Exercise Price Range One | ' | ' | ' | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' | ' | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range Number Of Outstanding Options | 2,846,795 | ' | 2,846,795 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | ' | ' | '5 years 3 months 10 days | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $30.66 | ' | $30.66 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 2,016,445 | ' | 2,016,445 | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term | ' | ' | '3 years 11 months 28 days | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $27.72 | ' | $27.72 | ' | ' |
Minimum | ' | ' | ' | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $13.89 | ' | $13.89 | ' | ' |
Maximum | ' | ' | ' | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $42.16 | ' | $42.16 | ' | ' |
Stock Plan Member, 2013 | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant | ' | ' | ' | ' | 1,500,000 |
EmployeeStock | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Number Of Shares Available For Grant | ' | ' | ' | ' | 2,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Terms of Award, Maximum (in years) | ' | ' | ' | '10 years | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Weighted Average Grant Date Fair Value | ' | ' | $19.05 | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Volatility Rate | ' | ' | 50.85% | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Dividend Rate | ' | ' | 0.00% | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Term | ' | ' | '6 years 3 months 0 days | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate | ' | ' | 1.90% | ' | ' |
Allocated Share Based Compensation Expense | 1 | 1 | 4 | 4 | ' |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | 10 | ' | 10 | ' | ' |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition | ' | ' | '2 years 8 months 15 days | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value | 10 | ' | 10 | ' | ' |
Employee emergence equity program expense | 0.4 | 0.4 | 1 | 0.6 | ' |
Restricted Stock | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Expected Term | ' | ' | '2 years 7 months 25 days | ' | ' |
Allocated Share Based Compensation Expense | 4 | 4 | 13 | 12 | ' |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | 28 | ' | 28 | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Total Fair Value | ' | ' | 14 | 16 | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Additional Disclosures Abstract | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | ' | ' | 1,735,824 | ' | ' |
Number of shares granted | ' | ' | 488,257 | ' | ' |
Number of shares vested | ' | ' | -431,958 | ' | ' |
Number of shares forfeited | ' | ' | -50,515 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 1,741,608 | ' | 1,741,608 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | $32.49 | ' | ' |
Weighted average fair value of grants | ' | ' | $37.85 | ' | ' |
Weighted average fair value of vested | ' | ' | $32.67 | ' | ' |
Weighted average fair value of forfeited | ' | ' | $37.04 | ' | ' |
Ending Balance | $33.79 | ' | $33.79 | ' | ' |
Performance Stock Units (PSUs) | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Allocated Share Based Compensation Expense | 1 | 1 | 4 | 5 | ' |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | 12 | ' | 12 | ' | ' |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition | ' | ' | '1 year 10 months 0 days | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Additional Disclosures Abstract | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | ' | ' | 410,500 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 628,300 | ' | 628,300 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' | ' | ' | ' | ' |
Beginning Balance | ' | ' | $53.04 | ' | ' |
Weighted average fair value of forfeited | ' | ' | $40 | ' | ' |
Ending Balance | $50.27 | ' | $50.27 | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Allocated Share Based Compensation Expense | ' | ' | $1 | ' | ' |
EARNINGS_PER_SHARE_DETAIL
EARNINGS PER SHARE (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Apr. 25, 2012 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Repurchase Program 2012 | Restricted Stock | Restricted Stock | Restricted Stock | Equity Option | Equity Option | Equity Option | Series A Warrants | Series B Warrants | |||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount | ' | ' | ' | ' | ' | 200,000 | 1,000,000 | 200,000 | 1,300,000 | 1,000,000 | 700,000 | 17,500,000 | 7,800,000 |
Equity Class Of Treasury Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 7,700,000 | ' | 7,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings attributable to Owens Corning | $52 | $51 | $193 | $122 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average number of shares outstanding used for basic earnings per share | 117,400,000 | 118,000,000 | 117,500,000 | 118,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested restricted and performance shares | 400,000 | 400,000 | 400,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options to purchase common stock | 300,000 | 400,000 | 400,000 | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share | 118,100,000 | 118,800,000 | 118,300,000 | 119,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | $0.44 | $0.43 | $1.64 | $1.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted (in dollars per share) | $0.44 | $0.43 | $1.63 | $1.02 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
FAIR_VALUE_MEASUREMENT_DETAIL
FAIR VALUE MEASUREMENT (DETAIL) (USD $) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 28, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | |
Senior Notes Due 2016 | Senior Notes Due 2016 | Senior Notes Due 2016 | Senior Notes Due 2036 | Senior Notes Due 2036 | Senior Notes Due 2019 | Senior Notes Due 2019 | Senior Notes Due 2022 | Senior Notes Due 2022 | Senior Notes Due 2022 | Fair Value Inputs Level 1 | Fair Value Inputs Level 1 | Fair Value Inputs Level 2 | Fair Value Inputs Level 2 | Fair Value Inputs Level 3 | Fair Value Inputs Level 3 | Maximum Payout | Minimum Payout | |||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents | $10,000,000 | $20,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $10,000,000 | $20,000,000 | $0 | $0 | $0 | $0 | ' | ' |
Term deposits | 14,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,000,000 | 2,000,000 | 0 | 0 | 0 | 0 | ' | ' |
Derivative assets | 9,000,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 9,000,000 | 1,000,000 | 0 | 0 | ' | ' |
Total assets | 33,000,000 | 23,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,000,000 | 22,000,000 | 9,000,000 | 1,000,000 | 0 | 0 | ' | ' |
Liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative liabilities | 3,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 3,000,000 | 4,000,000 | 0 | 0 | ' | ' |
Contingent consideration | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 5,000,000 | ' | 7,000,000 | 4,000,000 |
Total liabilities | 8,000,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 3,000,000 | 4,000,000 | 5,000,000 | 0 | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets Held-for-sale, Long Lived, Fair Value Disclosure | 11,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment Charge on Reclassified Assets | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Receivable Fair Value Disclosure | 1,000,000 | 6,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | ' | ' | 6.50% | 6.50% | 6.50% | 7.00% | 7.00% | 9.00% | 9.00% | 4.20% | 4.20% | 4.20% | ' | ' | ' | ' | ' | ' | ' | ' |
Notes Payable, Fair Value Disclosure, Par Value | ' | ' | 109.00% | 111.00% | ' | 121.00% | 107.00% | 123.00% | 125.00% | 101.00% | 96.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term Debt, Fair Value | $372,000,000 | $224,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_DETAIL
INCOME TAXES (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Current Income Tax Expense (Benefit) | $27 | ' | $9 | ' |
Effective Income Tax Rate Continuing Operations | 34.00% | 34.00% | 4.00% | 37.00% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | 35.00% |
Valuation Allowance, Amount | 78 | ' | 78 | ' |
Current Federal Tax Expense | ' | $26 | ' | $71 |
CHANGES_IN_ACCUMULATED_OTHER_C2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Type of Expense From AOCI to the Statement of Earnings [Line Items] | ' | ' | ' | ' |
Expense on the Statement of Earnings | $2 | $3 | $5 | $11 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Cash flow hedge activity beginning balance | ' | ' | 0 | -1 |
Defined benefit pension plan activity beginning balance | ' | ' | -184 | -279 |
OCI valuation allowance activity beginning balance | ' | ' | -115 | -114 |
Foreign currency translation adjustment beginning balance | ' | ' | 2 | 30 |
Total AOCI beginning balance | ' | ' | -297 | -364 |
Unrealized gain (loss) on derivatives arising during period (net of tax) | ' | ' | -1 | -2 |
Reclassification adjustment from AOCI on derivatives (net of tax) | ' | ' | 0 | 2 |
Deferred loss on hedging transactions (net of tax) | 0 | 0 | -1 | 0 |
Translation impact on non US plans (net of tax) | ' | ' | 2 | 2 |
Reclassification adjustment from AOCI postretirement benefit plans tax | ' | ' | 4 | 9 |
Pension and other postretirement adjustment (net of tax) | 4 | 2 | 6 | 11 |
Change in valuation amount deferred tax asset | ' | ' | 0 | 1 |
Reclassification AOCI valuation | ' | ' | 0 | 0 |
AOCI valuation (net of tax) | ' | ' | 0 | 1 |
Foreign currency transaction and translation gain (loss) arising during period (net of tax) | ' | ' | -65 | -30 |
Other comprehensive income translation impact | ' | ' | 1 | 0 |
Foreign currency transaction and translation adjustment (net of tax) | -59 | 15 | -64 | -30 |
Amounts classified into AOCI | ' | ' | -64 | -29 |
Amounts reclassified rrom AOCI | ' | ' | 5 | 11 |
Change in AOCI | ' | ' | -59 | -18 |
Cash flow hedge activity ending balance | -1 | -1 | -1 | -1 |
Defined benefit pension plan activity ending balance | -178 | -268 | -178 | -268 |
OCI valuation allowance activity ending balance | -115 | -113 | -115 | -113 |
Foreign currency translation adjustment ending balance | -62 | 0 | -62 | 0 |
Total AOCI ending balance | -356 | -382 | -356 | -382 |
Cost Of Sales | Cash Flow Hedging | ' | ' | ' | ' |
Type of Expense From AOCI to the Statement of Earnings [Line Items] | ' | ' | ' | ' |
Expense on the Statement of Earnings | 0 | 1 | 0 | 2 |
Cost Of Sales | Pension Plan, Defined Benefit | ' | ' | ' | ' |
Type of Expense From AOCI to the Statement of Earnings [Line Items] | ' | ' | ' | ' |
Expense on the Statement of Earnings | 1 | 2 | 3 | 7 |
General and Administrative Expense | Pension Plan, Defined Benefit | ' | ' | ' | ' |
Type of Expense From AOCI to the Statement of Earnings [Line Items] | ' | ' | ' | ' |
Expense on the Statement of Earnings | 0 | 0 | 1 | 2 |
Other Expense | Foreign Currency Gain (Loss) | ' | ' | ' | ' |
Type of Expense From AOCI to the Statement of Earnings [Line Items] | ' | ' | ' | ' |
Expense on the Statement of Earnings | $1 | $0 | $1 | $0 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' | ' |
NET SALES | $1,382 | ' | $1,320 | $4,015 | $4,017 |
COST OF SALES | 1,131 | ' | 1,067 | 3,282 | 3,284 |
Gross margin | 251 | ' | 253 | 733 | 733 |
OPERATING EXPENSES | ' | ' | ' | ' | ' |
Marketing and administrative expenses | 110 | ' | 128 | 372 | 395 |
Science and technology expenses | 18 | ' | 19 | 57 | 57 |
Charges related to cost reduction actions | 19 | 2 | 6 | 31 | 8 |
Other (income) expenses, net | -3 | ' | -6 | -15 | -8 |
Total operating expenses | 144 | ' | 147 | 445 | 452 |
EARNINGS BEFORE INTEREST AND TAXES | 107 | ' | 106 | 288 | 281 |
Interest expense, net | 28 | ' | 29 | 86 | 87 |
EARNINGS BEFORE TAXES | 79 | ' | 77 | 202 | 194 |
Less: Income tax expense | 27 | ' | 26 | 9 | 71 |
Equity in net earnings of subsidiaries | 0 | ' | 0 | 0 | 0 |
Equity in net earnings of affiliates | 0 | ' | 0 | 1 | 0 |
NET EARNINGS | 52 | ' | 51 | 194 | 123 |
Less: Net earnings attributable to noncontrolling interests | 0 | ' | 0 | 1 | 1 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | 52 | ' | 51 | 193 | 122 |
Parent Company | ' | ' | ' | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' | ' |
NET SALES | 0 | ' | 0 | 0 | 0 |
COST OF SALES | -5 | ' | -3 | -9 | -7 |
Gross margin | 5 | ' | 3 | 9 | 7 |
OPERATING EXPENSES | ' | ' | ' | ' | ' |
Marketing and administrative expenses | 24 | ' | 25 | 84 | 89 |
Science and technology expenses | 0 | ' | 0 | 0 | 0 |
Charges related to cost reduction actions | 0 | ' | 0 | 0 | 0 |
Other (income) expenses, net | 2 | ' | -10 | -14 | -17 |
Total operating expenses | 26 | ' | 15 | 70 | 72 |
EARNINGS BEFORE INTEREST AND TAXES | -21 | ' | -12 | -61 | -65 |
Interest expense, net | 26 | ' | 27 | 80 | 81 |
EARNINGS BEFORE TAXES | -47 | ' | -39 | -141 | -146 |
Less: Income tax expense | -17 | ' | -16 | -53 | -57 |
Equity in net earnings of subsidiaries | 82 | ' | 74 | 281 | 211 |
Equity in net earnings of affiliates | 0 | ' | 0 | 0 | 0 |
NET EARNINGS | 52 | ' | 51 | 193 | 122 |
Less: Net earnings attributable to noncontrolling interests | 0 | ' | 0 | 0 | 0 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | 52 | ' | 51 | 193 | 122 |
Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' | ' |
NET SALES | 964 | ' | 921 | 2,800 | 2,872 |
COST OF SALES | 795 | ' | 739 | 2,314 | 2,340 |
Gross margin | 169 | ' | 182 | 486 | 532 |
OPERATING EXPENSES | ' | ' | ' | ' | ' |
Marketing and administrative expenses | 55 | ' | 68 | 191 | 202 |
Science and technology expenses | 14 | ' | 13 | 44 | 43 |
Charges related to cost reduction actions | 0 | ' | 0 | 1 | 0 |
Other (income) expenses, net | -6 | ' | 4 | 8 | 0 |
Total operating expenses | 63 | ' | 85 | 244 | 245 |
EARNINGS BEFORE INTEREST AND TAXES | 106 | ' | 97 | 242 | 287 |
Interest expense, net | 0 | ' | 0 | 2 | 1 |
EARNINGS BEFORE TAXES | 106 | ' | 97 | 240 | 286 |
Less: Income tax expense | 37 | ' | 32 | 46 | 91 |
Equity in net earnings of subsidiaries | 13 | ' | 9 | 87 | 16 |
Equity in net earnings of affiliates | 0 | ' | 0 | 0 | 0 |
NET EARNINGS | 82 | ' | 74 | 281 | 211 |
Less: Net earnings attributable to noncontrolling interests | 0 | ' | 0 | 0 | 0 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | 82 | ' | 74 | 281 | 211 |
Non Guarantor Subsidiaries | ' | ' | ' | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' | ' |
NET SALES | 511 | ' | 497 | 1,496 | 1,451 |
COST OF SALES | 434 | ' | 429 | 1,258 | 1,257 |
Gross margin | 77 | ' | 68 | 238 | 194 |
OPERATING EXPENSES | ' | ' | ' | ' | ' |
Marketing and administrative expenses | 31 | ' | 35 | 97 | 104 |
Science and technology expenses | 4 | ' | 6 | 13 | 14 |
Charges related to cost reduction actions | 19 | ' | 6 | 30 | 8 |
Other (income) expenses, net | 1 | ' | 0 | -9 | 9 |
Total operating expenses | 55 | ' | 47 | 131 | 135 |
EARNINGS BEFORE INTEREST AND TAXES | 22 | ' | 21 | 107 | 59 |
Interest expense, net | 2 | ' | 2 | 4 | 5 |
EARNINGS BEFORE TAXES | 20 | ' | 19 | 103 | 54 |
Less: Income tax expense | 7 | ' | 10 | 16 | 37 |
Equity in net earnings of subsidiaries | 0 | ' | 0 | 0 | 0 |
Equity in net earnings of affiliates | 0 | ' | 0 | 1 | 0 |
NET EARNINGS | 13 | ' | 9 | 88 | 17 |
Less: Net earnings attributable to noncontrolling interests | 0 | ' | 0 | 1 | 1 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | 13 | ' | 9 | 87 | 16 |
Consolidation Eliminations | ' | ' | ' | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' | ' |
NET SALES | -93 | ' | -98 | -281 | -306 |
COST OF SALES | -93 | ' | -98 | -281 | -306 |
Gross margin | 0 | ' | 0 | 0 | 0 |
OPERATING EXPENSES | ' | ' | ' | ' | ' |
Marketing and administrative expenses | 0 | ' | 0 | 0 | 0 |
Science and technology expenses | 0 | ' | 0 | 0 | 0 |
Charges related to cost reduction actions | 0 | ' | 0 | 0 | 0 |
Other (income) expenses, net | 0 | ' | 0 | 0 | 0 |
Total operating expenses | 0 | ' | 0 | 0 | 0 |
EARNINGS BEFORE INTEREST AND TAXES | 0 | ' | 0 | 0 | 0 |
Interest expense, net | 0 | ' | 0 | 0 | 0 |
EARNINGS BEFORE TAXES | 0 | ' | 0 | 0 | 0 |
Less: Income tax expense | 0 | ' | 0 | 0 | 0 |
Equity in net earnings of subsidiaries | -95 | ' | -83 | -368 | -227 |
Equity in net earnings of affiliates | 0 | ' | 0 | 0 | 0 |
NET EARNINGS | -95 | ' | -83 | -368 | -227 |
Less: Net earnings attributable to noncontrolling interests | 0 | ' | 0 | 0 | 0 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | ($95) | ' | ($83) | ($368) | ($227) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' |
NET EARNINGS | $52 | $51 | $194 | $123 |
Currency translation adjustment | -59 | 15 | -64 | -30 |
Pension and other postretirement adjustment (net of tax) | 4 | 2 | 6 | 11 |
Deferred loss on hedging transactions (net of tax) | 0 | 0 | -1 | 0 |
COMPREHENSIVE EARNINGS | -3 | 68 | 135 | 104 |
Less: Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 1 | 1 |
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | -3 | 68 | 134 | 103 |
Parent Company | ' | ' | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' |
NET EARNINGS | 52 | 51 | 193 | 122 |
Currency translation adjustment | -59 | 15 | -64 | -30 |
Pension and other postretirement adjustment (net of tax) | 4 | 2 | 6 | 11 |
Deferred loss on hedging transactions (net of tax) | 0 | 0 | -1 | 0 |
COMPREHENSIVE EARNINGS | -3 | 68 | 134 | 103 |
Less: Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | -3 | 68 | 134 | 103 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' |
NET EARNINGS | 82 | 74 | 281 | 211 |
Currency translation adjustment | 0 | 0 | 0 | 0 |
Pension and other postretirement adjustment (net of tax) | 0 | 0 | 0 | 0 |
Deferred loss on hedging transactions (net of tax) | 0 | 0 | 0 | 0 |
COMPREHENSIVE EARNINGS | 82 | 74 | 281 | 211 |
Less: Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | 82 | 74 | 281 | 211 |
Non Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' |
NET EARNINGS | 13 | 9 | 88 | 17 |
Currency translation adjustment | 0 | 0 | 0 | 0 |
Pension and other postretirement adjustment (net of tax) | 0 | 0 | 0 | 0 |
Deferred loss on hedging transactions (net of tax) | 0 | 0 | 0 | 0 |
COMPREHENSIVE EARNINGS | 13 | 9 | 88 | 17 |
Less: Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 1 | 1 |
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | 13 | 9 | 87 | 16 |
Consolidation Eliminations | ' | ' | ' | ' |
Condensed Financial Statements Captions [Line Items] | ' | ' | ' | ' |
NET EARNINGS | -95 | -83 | -368 | -227 |
Currency translation adjustment | 0 | 0 | 0 | 0 |
Pension and other postretirement adjustment (net of tax) | 0 | 0 | 0 | 0 |
Deferred loss on hedging transactions (net of tax) | 0 | 0 | 0 | 0 |
COMPREHENSIVE EARNINGS | -95 | -83 | -368 | -227 |
Less: Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | ($95) | ($83) | ($368) | ($227) |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (DETAIL) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||||
CURRENT ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | $51 | $57 | $51 | $55 | ||
Receivables, less allowances | 904 | 683 | ' | ' | ||
Due from affiliates | 0 | 0 | ' | ' | ||
Inventories | 823 | 810 | ' | ' | ||
Assets held for sale – current | 16 | 29 | ' | ' | ||
Other current assets | 223 | 269 | ' | ' | ||
Total current assets | 2,017 | 1,848 | ' | ' | ||
Investment in subsidiaries | 0 | 0 | ' | ' | ||
Due from affiliates | 0 | 0 | ' | ' | ||
Property, plant and equipment, net | 2,892 | 2,932 | ' | ' | ||
Goodwill | 1,168 | 1,166 | ' | ' | ||
Intangible assets | 1,025 | 1,040 | ' | ' | ||
Deferred income taxes | 372 | 436 | ' | ' | ||
Other non-current assets | 221 | 225 | ' | ' | ||
TOTAL ASSETS | 7,695 | 7,647 | ' | ' | ||
CURRENT LIABILITIES | ' | ' | ' | ' | ||
Accounts payable and accrued liabilities | 933 | 988 | ' | ' | ||
Due to affiliates | 0 | 0 | ' | ' | ||
Short-term debt | 22 | 1 | ' | ' | ||
Long-term debt – current portion | 4 | 3 | ' | ' | ||
Total current liabilities | 959 | 992 | ' | ' | ||
Long-term debt, net of current portion | 2,171 | 2,024 | ' | ' | ||
Due to affiliates | 0 | 0 | ' | ' | ||
Pension plan liability | 285 | 336 | ' | ' | ||
Other employee benefits liability | 230 | 242 | ' | ' | ||
Deferred income taxes | 20 | 23 | ' | ' | ||
Other liabilities | 133 | 200 | ' | ' | ||
OWENS CORNING STOCKHOLDERS' EQUITY | ' | ' | ' | ' | ||
Preferred stock | 0 | [1] | 0 | [1] | ' | ' |
Common stock | 1 | [2] | 1 | [2] | ' | ' |
Additional paid in capital | 3,947 | 3,938 | ' | ' | ||
Accumulated earnings | 791 | 655 | ' | ' | ||
Accumulated other comprehensive deficit | -356 | -297 | -382 | -364 | ||
Cost of common stock in treasury | -524 | [3] | -504 | [3] | ' | ' |
Total Owens Corning stockholders’ equity | 3,859 | 3,793 | ' | ' | ||
Noncontrolling interests | 38 | 37 | ' | ' | ||
Total equity | 3,897 | 3,830 | ' | ' | ||
TOTAL LIABILITIES AND EQUITY | 7,695 | 7,647 | ' | ' | ||
Parent Company | ' | ' | ' | ' | ||
CURRENT ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 0 | 0 | 1 | 0 | ||
Receivables, less allowances | 0 | 0 | ' | ' | ||
Due from affiliates | 0 | 0 | ' | ' | ||
Inventories | 0 | 0 | ' | ' | ||
Assets held for sale – current | 0 | 0 | ' | ' | ||
Other current assets | -2 | 45 | ' | ' | ||
Total current assets | -2 | 45 | ' | ' | ||
Investment in subsidiaries | 7,546 | 7,229 | ' | ' | ||
Due from affiliates | 0 | 0 | ' | ' | ||
Property, plant and equipment, net | 359 | 362 | ' | ' | ||
Goodwill | 0 | 0 | ' | ' | ||
Intangible assets | 0 | 0 | ' | ' | ||
Deferred income taxes | 13 | 14 | ' | ' | ||
Other non-current assets | 25 | 31 | ' | ' | ||
TOTAL ASSETS | 7,941 | 7,681 | ' | ' | ||
CURRENT LIABILITIES | ' | ' | ' | ' | ||
Accounts payable and accrued liabilities | 71 | 15 | ' | ' | ||
Due to affiliates | 1,789 | 1,688 | ' | ' | ||
Short-term debt | 0 | 0 | ' | ' | ||
Long-term debt – current portion | 0 | 0 | ' | ' | ||
Total current liabilities | 1,860 | 1,703 | ' | ' | ||
Long-term debt, net of current portion | 1,912 | 1,814 | ' | ' | ||
Due to affiliates | 0 | 0 | ' | ' | ||
Pension plan liability | 179 | 213 | ' | ' | ||
Other employee benefits liability | 0 | 0 | ' | ' | ||
Deferred income taxes | 0 | 0 | ' | ' | ||
Other liabilities | 131 | 158 | ' | ' | ||
OWENS CORNING STOCKHOLDERS' EQUITY | ' | ' | ' | ' | ||
Preferred stock | 0 | 0 | ' | ' | ||
Common stock | 1 | 1 | ' | ' | ||
Additional paid in capital | 3,947 | 3,938 | ' | ' | ||
Accumulated earnings | 791 | 655 | ' | ' | ||
Accumulated other comprehensive deficit | -356 | -297 | ' | ' | ||
Cost of common stock in treasury | -524 | -504 | ' | ' | ||
Total Owens Corning stockholders’ equity | 3,859 | 3,793 | ' | ' | ||
Noncontrolling interests | 0 | 0 | ' | ' | ||
Total equity | 3,859 | 3,793 | ' | ' | ||
TOTAL LIABILITIES AND EQUITY | 7,941 | 7,681 | ' | ' | ||
Guarantor Subsidiaries | ' | ' | ' | ' | ||
CURRENT ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 6 | 3 | 4 | 3 | ||
Receivables, less allowances | 0 | 0 | ' | ' | ||
Due from affiliates | 2,776 | 2,664 | ' | ' | ||
Inventories | 508 | 487 | ' | ' | ||
Assets held for sale – current | 0 | 0 | ' | ' | ||
Other current assets | 135 | 140 | ' | ' | ||
Total current assets | 3,425 | 3,294 | ' | ' | ||
Investment in subsidiaries | 2,594 | 2,558 | ' | ' | ||
Due from affiliates | 62 | 67 | ' | ' | ||
Property, plant and equipment, net | 1,335 | 1,313 | ' | ' | ||
Goodwill | 1,127 | 1,127 | ' | ' | ||
Intangible assets | 995 | 1,015 | ' | ' | ||
Deferred income taxes | 319 | 416 | ' | ' | ||
Other non-current assets | 61 | 64 | ' | ' | ||
TOTAL ASSETS | 9,918 | 9,854 | ' | ' | ||
CURRENT LIABILITIES | ' | ' | ' | ' | ||
Accounts payable and accrued liabilities | 500 | 608 | ' | ' | ||
Due to affiliates | 0 | 0 | ' | ' | ||
Short-term debt | 0 | 0 | ' | ' | ||
Long-term debt – current portion | 2 | 2 | ' | ' | ||
Total current liabilities | 502 | 610 | ' | ' | ||
Long-term debt, net of current portion | 27 | 26 | ' | ' | ||
Due to affiliates | 894 | 959 | ' | ' | ||
Pension plan liability | 0 | 0 | ' | ' | ||
Other employee benefits liability | 215 | 226 | ' | ' | ||
Deferred income taxes | 0 | 0 | ' | ' | ||
Other liabilities | 176 | 246 | ' | ' | ||
OWENS CORNING STOCKHOLDERS' EQUITY | ' | ' | ' | ' | ||
Preferred stock | 0 | 0 | ' | ' | ||
Common stock | 0 | 0 | ' | ' | ||
Additional paid in capital | 6,607 | 6,572 | ' | ' | ||
Accumulated earnings | 1,497 | 1,215 | ' | ' | ||
Accumulated other comprehensive deficit | 0 | 0 | ' | ' | ||
Cost of common stock in treasury | 0 | 0 | ' | ' | ||
Total Owens Corning stockholders’ equity | 8,104 | 7,787 | ' | ' | ||
Noncontrolling interests | 0 | 0 | ' | ' | ||
Total equity | 8,104 | 7,787 | ' | ' | ||
TOTAL LIABILITIES AND EQUITY | 9,918 | 9,854 | ' | ' | ||
Non Guarantor Subsidiaries | ' | ' | ' | ' | ||
CURRENT ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 45 | 54 | 46 | 52 | ||
Receivables, less allowances | 904 | 683 | ' | ' | ||
Due from affiliates | 0 | 0 | ' | ' | ||
Inventories | 315 | 323 | ' | ' | ||
Assets held for sale – current | 16 | 29 | ' | ' | ||
Other current assets | 90 | 84 | ' | ' | ||
Total current assets | 1,370 | 1,173 | ' | ' | ||
Investment in subsidiaries | 558 | 558 | ' | ' | ||
Due from affiliates | 894 | 959 | ' | ' | ||
Property, plant and equipment, net | 1,198 | 1,257 | ' | ' | ||
Goodwill | 41 | 39 | ' | ' | ||
Intangible assets | 248 | 271 | ' | ' | ||
Deferred income taxes | 40 | 6 | ' | ' | ||
Other non-current assets | 135 | 130 | ' | ' | ||
TOTAL ASSETS | 4,484 | 4,393 | ' | ' | ||
CURRENT LIABILITIES | ' | ' | ' | ' | ||
Accounts payable and accrued liabilities | 362 | 365 | ' | ' | ||
Due to affiliates | 987 | 976 | ' | ' | ||
Short-term debt | 22 | 1 | ' | ' | ||
Long-term debt – current portion | 2 | 1 | ' | ' | ||
Total current liabilities | 1,373 | 1,343 | ' | ' | ||
Long-term debt, net of current portion | 232 | 184 | ' | ' | ||
Due to affiliates | 62 | 67 | ' | ' | ||
Pension plan liability | 106 | 123 | ' | ' | ||
Other employee benefits liability | 15 | 16 | ' | ' | ||
Deferred income taxes | 20 | 23 | ' | ' | ||
Other liabilities | 44 | 42 | ' | ' | ||
OWENS CORNING STOCKHOLDERS' EQUITY | ' | ' | ' | ' | ||
Preferred stock | 0 | 0 | ' | ' | ||
Common stock | 0 | 0 | ' | ' | ||
Additional paid in capital | 1,996 | 2,045 | ' | ' | ||
Accumulated earnings | 598 | 513 | ' | ' | ||
Accumulated other comprehensive deficit | 0 | 0 | ' | ' | ||
Cost of common stock in treasury | 0 | 0 | ' | ' | ||
Total Owens Corning stockholders’ equity | 2,594 | 2,558 | ' | ' | ||
Noncontrolling interests | 38 | 37 | ' | ' | ||
Total equity | 2,632 | 2,595 | ' | ' | ||
TOTAL LIABILITIES AND EQUITY | 4,484 | 4,393 | ' | ' | ||
Consolidation Eliminations | ' | ' | ' | ' | ||
CURRENT ASSETS | ' | ' | ' | ' | ||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Receivables, less allowances | 0 | 0 | ' | ' | ||
Due from affiliates | -2,776 | -2,664 | ' | ' | ||
Inventories | 0 | 0 | ' | ' | ||
Assets held for sale – current | 0 | 0 | ' | ' | ||
Other current assets | 0 | 0 | ' | ' | ||
Total current assets | -2,776 | -2,664 | ' | ' | ||
Investment in subsidiaries | -10,698 | -10,345 | ' | ' | ||
Due from affiliates | -956 | -1,026 | ' | ' | ||
Property, plant and equipment, net | 0 | 0 | ' | ' | ||
Goodwill | 0 | 0 | ' | ' | ||
Intangible assets | -218 | -246 | ' | ' | ||
Deferred income taxes | 0 | 0 | ' | ' | ||
Other non-current assets | 0 | 0 | ' | ' | ||
TOTAL ASSETS | -14,648 | -14,281 | ' | ' | ||
CURRENT LIABILITIES | ' | ' | ' | ' | ||
Accounts payable and accrued liabilities | 0 | 0 | ' | ' | ||
Due to affiliates | -2,776 | -2,664 | ' | ' | ||
Short-term debt | 0 | 0 | ' | ' | ||
Long-term debt – current portion | 0 | 0 | ' | ' | ||
Total current liabilities | -2,776 | -2,664 | ' | ' | ||
Long-term debt, net of current portion | 0 | 0 | ' | ' | ||
Due to affiliates | -956 | -1,026 | ' | ' | ||
Pension plan liability | 0 | 0 | ' | ' | ||
Other employee benefits liability | 0 | 0 | ' | ' | ||
Deferred income taxes | 0 | 0 | ' | ' | ||
Other liabilities | -218 | -246 | ' | ' | ||
OWENS CORNING STOCKHOLDERS' EQUITY | ' | ' | ' | ' | ||
Preferred stock | 0 | 0 | ' | ' | ||
Common stock | 0 | 0 | ' | ' | ||
Additional paid in capital | -8,603 | -8,617 | ' | ' | ||
Accumulated earnings | -2,095 | -1,728 | ' | ' | ||
Accumulated other comprehensive deficit | 0 | 0 | ' | ' | ||
Cost of common stock in treasury | 0 | 0 | ' | ' | ||
Total Owens Corning stockholders’ equity | -10,698 | -10,345 | ' | ' | ||
Noncontrolling interests | 0 | 0 | ' | ' | ||
Total equity | -10,698 | -10,345 | ' | ' | ||
TOTAL LIABILITIES AND EQUITY | ($14,648) | ($14,281) | ' | ' | ||
[1] | 10 shares authorized; none issued or outstanding at September 30, 2014, and December 31, 2013 | |||||
[2] | 400 shares authorized; 135.5 issued and 117.6 outstanding at September 30, 2014; 135.5 issued and 117.8 outstanding at December 31, 2013 | |||||
[3] | 17.9 shares at September 30, 2014, and 17.7 shares at December 31, 2013 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (DETAIL) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ' | ' |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | $62 | $158 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ' | ' |
Additions to plant and equipment (including alloy) | -216 | -199 |
Proceeds from the sale of assets (including alloy) or affiliates, net | 65 | 17 |
Investment in subsidiaries and affiliates, net of cash acquired | -12 | -62 |
Proceeds from Hurricane Sandy insurance claims | 0 | 26 |
Derivative Settlement | 1 | 0 |
Purchases of alloy | -25 | -15 |
Proceeds from sale of alloy | 25 | 16 |
Net cash flow used for investing activities | -162 | -217 |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ' | ' |
Proceeds from senior revolving credit and receivables securitization facilities | 1,068 | 1,063 |
Payments on senior revolving credit and receivables securitization facilities | -919 | -957 |
Payments on long-term debt | -1 | -1 |
Net increase in short-term debt | 21 | 3 |
Cash dividends paid | -37 | 0 |
Purchases of treasury stock | -44 | -63 |
Other intercompany loans | 0 | 0 |
Other | 7 | 12 |
Net cash flow provided by financing activities | 95 | 57 |
Effect of exchange rate changes on cash | -1 | -2 |
Net decrease in cash and cash equivalents | -6 | -4 |
Cash and cash equivalents at beginning of period | 57 | 55 |
Cash and cash equivalents at end of period | 51 | 51 |
Parent Company | ' | ' |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ' | ' |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | -54 | -68 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ' | ' |
Additions to plant and equipment (including alloy) | -9 | -5 |
Proceeds from the sale of assets (including alloy) or affiliates, net | 44 | 0 |
Investment in subsidiaries and affiliates, net of cash acquired | 0 | 0 |
Proceeds from Hurricane Sandy insurance claims | 0 | 0 |
Derivative Settlement | 0 | 0 |
Purchases of alloy | 0 | 0 |
Proceeds from sale of alloy | 4 | 16 |
Net cash flow used for investing activities | 39 | 11 |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ' | ' |
Proceeds from senior revolving credit and receivables securitization facilities | 1,018 | 940 |
Payments on senior revolving credit and receivables securitization facilities | -919 | -906 |
Payments on long-term debt | 0 | 0 |
Net increase in short-term debt | 0 | 0 |
Cash dividends paid | -37 | 0 |
Purchases of treasury stock | -44 | -63 |
Other intercompany loans | -10 | 75 |
Other | 7 | 12 |
Net cash flow provided by financing activities | 15 | 58 |
Effect of exchange rate changes on cash | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 1 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 1 |
Guarantor Subsidiaries | ' | ' |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ' | ' |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 131 | 105 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ' | ' |
Additions to plant and equipment (including alloy) | -120 | -70 |
Proceeds from the sale of assets (including alloy) or affiliates, net | 0 | 0 |
Investment in subsidiaries and affiliates, net of cash acquired | -5 | -51 |
Proceeds from Hurricane Sandy insurance claims | 0 | 26 |
Derivative Settlement | 0 | 0 |
Purchases of alloy | 0 | 0 |
Proceeds from sale of alloy | 0 | 0 |
Net cash flow used for investing activities | -125 | -95 |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ' | ' |
Proceeds from senior revolving credit and receivables securitization facilities | 0 | 0 |
Payments on senior revolving credit and receivables securitization facilities | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Net increase in short-term debt | 0 | 0 |
Cash dividends paid | 0 | 0 |
Purchases of treasury stock | 0 | 0 |
Other intercompany loans | -3 | -9 |
Other | 0 | 0 |
Net cash flow provided by financing activities | -3 | -9 |
Effect of exchange rate changes on cash | 0 | 0 |
Net decrease in cash and cash equivalents | 3 | 1 |
Cash and cash equivalents at beginning of period | 3 | 3 |
Cash and cash equivalents at end of period | 6 | 4 |
Non Guarantor Subsidiaries | ' | ' |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ' | ' |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | -15 | 121 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ' | ' |
Additions to plant and equipment (including alloy) | -87 | -124 |
Proceeds from the sale of assets (including alloy) or affiliates, net | 21 | 17 |
Investment in subsidiaries and affiliates, net of cash acquired | -7 | -11 |
Proceeds from Hurricane Sandy insurance claims | 0 | 0 |
Derivative Settlement | 1 | 0 |
Purchases of alloy | -25 | -15 |
Proceeds from sale of alloy | 21 | 0 |
Net cash flow used for investing activities | -76 | -133 |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ' | ' |
Proceeds from senior revolving credit and receivables securitization facilities | 50 | 123 |
Payments on senior revolving credit and receivables securitization facilities | 0 | -51 |
Payments on long-term debt | -1 | -1 |
Net increase in short-term debt | 21 | 3 |
Cash dividends paid | 0 | 0 |
Purchases of treasury stock | 0 | 0 |
Other intercompany loans | 13 | -66 |
Other | 0 | 0 |
Net cash flow provided by financing activities | 83 | 8 |
Effect of exchange rate changes on cash | -1 | -2 |
Net decrease in cash and cash equivalents | -9 | -6 |
Cash and cash equivalents at beginning of period | 54 | 52 |
Cash and cash equivalents at end of period | 45 | 46 |
Consolidation Eliminations | ' | ' |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ' | ' |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 0 | 0 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ' | ' |
Additions to plant and equipment (including alloy) | 0 | 0 |
Proceeds from the sale of assets (including alloy) or affiliates, net | 0 | 0 |
Investment in subsidiaries and affiliates, net of cash acquired | 0 | 0 |
Proceeds from Hurricane Sandy insurance claims | 0 | 0 |
Derivative Settlement | 0 | 0 |
Purchases of alloy | 0 | 0 |
Proceeds from sale of alloy | 0 | 0 |
Net cash flow used for investing activities | 0 | 0 |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ' | ' |
Proceeds from senior revolving credit and receivables securitization facilities | 0 | 0 |
Payments on senior revolving credit and receivables securitization facilities | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Net increase in short-term debt | 0 | 0 |
Cash dividends paid | 0 | 0 |
Purchases of treasury stock | 0 | 0 |
Other intercompany loans | 0 | 0 |
Other | 0 | 0 |
Net cash flow provided by financing activities | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $0 | $0 |