Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 15, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Owens Corning | |
Entity Central Index Key | 1370946 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Well Known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Amendment Flag | FALSE | |
Entity Common Stock Shares Outstanding | 117,995,865 |
CONSOLIDATED_STATEMENTS_OF_EAR
CONSOLIDATED STATEMENTS OF EARNINGS (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
NET SALES | $1,207 | $1,278 |
COST OF SALES | 998 | 1,044 |
Gross margin | 209 | 234 |
OPERATING EXPENSES | ||
Marketing and administrative expenses | 129 | 132 |
Science and technology expenses | 17 | 19 |
Charges related to cost reduction actions | 0 | 12 |
Other expenses (income), net | 5 | -37 |
Total operating expenses | 151 | 126 |
EARNINGS BEFORE INTEREST AND TAXES | 58 | 108 |
Interest expense, net | 26 | 27 |
EARNINGS BEFORE TAXES | 32 | 81 |
Less: Income tax expense (benefit) | 13 | -39 |
NET EARNINGS | 19 | 120 |
Less: Net earnings attributable to noncontrolling interests | 1 | 0 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $18 | $120 |
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS | ||
Basic (in dollars per share) | $0.15 | $1.02 |
Diluted (in dollars per share) | $0.15 | $1.01 |
Dividend (in dollars per share) | $0.17 | $0.16 |
WEIGHTED AVERAGE COMMON SHARES | ||
Basic (in shares) | 117.8 | 117.8 |
Diluted (in shares) | 118.5 | 118.7 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
NET EARNINGS | $19 | $120 |
Currency translation adjustment (net of tax) | -50 | -16 |
Pension and other postretirement adjustment (net of tax of $(2) and $(1) three months ended March 31, 2015 and 2014, respectively) | 8 | 3 |
Deferred gain on hedging (net of tax of $(1) and $0 for the three months ended March 31, 2015 and 2014, respectively) | 1 | 0 |
COMPREHENSIVE EARNINGS (LOSS) | -22 | 107 |
Less: Comprehensive earnings attributable to noncontrolling interests | 1 | 0 |
COMPREHENSIVE EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | ($23) | $107 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Pension and other postretirement tax | ($2) | ($1) |
Deferred loss on hedging tax | -1 | 0 |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | ($5) | $0 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | $77 | $67 | $65 | $57 | ||
Receivables, less allowances of $9 at March 31, 2015, and $10 at December 31, 2014 | 844 | 674 | ||||
Inventories | 825 | 817 | ||||
Assets held for sale | 14 | 16 | ||||
Other current assets | 235 | 233 | ||||
Total current assets | 1,995 | 1,807 | ||||
Property, plant and equipment, net | 2,851 | 2,899 | ||||
Goodwill | 1,168 | 1,168 | ||||
Intangible assets | 1,013 | 1,017 | ||||
Deferred income taxes | 434 | 444 | ||||
Other non-current assets | 235 | 220 | ||||
TOTAL ASSETS | 7,696 | 7,555 | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 895 | 949 | ||||
Short-term debt | 14 | 31 | ||||
Long-term debt – current portion | 3 | 3 | ||||
Total current liabilities | 912 | 983 | ||||
Long-term debt, net of current portion | 2,274 | 1,991 | ||||
Pension plan liability | 424 | 447 | ||||
Other employee benefits liability | 249 | 252 | ||||
Deferred income taxes | 22 | 22 | ||||
Other liabilities | 132 | 130 | ||||
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 | 3,946 | 3,954 | ||||
Accumulated earnings | 803 | 805 | ||||
Accumulated other comprehensive deficit | -591 | -550 | -310 | -297 | ||
Cost of common stock in treasury (c) | -515 | [3] | -518 | [3] | ||
Total Owens Corning stockholders’ equity | 3,644 | 3,692 | ||||
Noncontrolling interests | 39 | 38 | ||||
Total equity | 3,683 | 3,730 | ||||
TOTAL LIABILITIES AND EQUITY | $7,696 | $7,555 | ||||
[1] | 10 shares authorized; none issued or outstanding at March 31, 2015, and | |||||
[2] | 400 shares authorized; 135.5 issued and 118.0 outstanding at March 31, 2015; 135.5 issued and 117.8 outstanding at | |||||
[3] | 17.5 shares at March 31, 2015, and 17.7 shares at |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $9 | $10 |
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 | 118,000,000 | 117,800,000 |
Treasury stock shares | 17,500,000 | 17,700,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Cash Flows [Abstract] | ||
Net Income (Loss) Attributable to Parent | $18 | $120 |
NET CASH FLOW USED FOR OPERATING ACTIVITIES | ||
NET EARNINGS | 19 | 120 |
Adjustments to reconcile net earnings to cash used for operating activities: | ||
Depreciation and amortization | 75 | 76 |
Gain on sale of fixed assets | 0 | -45 |
Deferred income taxes | 4 | -45 |
Provision for pension and other employee benefits liabilities | 5 | 5 |
Stock-based compensation expense | 8 | 8 |
Other non-cash | 0 | -1 |
Change in working capital | -244 | -377 |
Pension fund contribution | -14 | -14 |
Payments for other employee benefits liabilities | -5 | -6 |
Other | 4 | 7 |
Net cash flow used for operating activities | -149 | -272 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Additions to plant and equipment (including alloy) | -56 | -51 |
Proceeds from the sale of assets (including alloy) or affiliates | 0 | -3 |
Net cash flow used for investing activities | -56 | -54 |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||
Proceeds from senior revolving credit and receivables securitization facilities | 529 | 484 |
Payments on senior revolving credit and receivables securitization facilities | -247 | -149 |
Net increase (decrease) in short-term debt | -17 | 24 |
Cash dividends paid | -39 | 0 |
Purchases of treasury stock | -19 | -29 |
Other | 7 | 5 |
Net cash flow provided by financing activities | 214 | 335 |
Effect of exchange rate changes on cash | 1 | -1 |
Net increase in cash and cash equivalents | 10 | 8 |
Cash and cash equivalents at beginning of period | 67 | 57 |
Cash and cash equivalents at end of period | $77 | $65 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2015 | |
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, 2014, 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 2014 annual report on Form 10-K. Certain reclassifications have been made to the periods presented for 2014 to conform to the classifications used in the periods presented for 2015. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Segment Reporting [Abstract] | |||||||
SEGEMENT INFORMATION | SEGMENT INFORMATION | ||||||
In the fourth quarter of 2014, Owens Corning announced organizational changes to streamline the Company's management structure and reduce costs. As a result of this action, the Building Materials Group organizational structure was eliminated. The Company's management structure now has three reportable segments: Composites, Insulation and Roofing. As a result, the 2014 segment information in this Note has been presented to reflect the new structure. 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. | |||||||
Insulation – Within our 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. | |||||||
Roofing – Within our Roofing business, the Company manufactures and sells residential roofing shingles and oxidized asphalt materials used in residential and commercial construction and specialty applications. | |||||||
NET SALES | |||||||
The following table summarizes our net sales by segment and geographic region (in millions). Corporate eliminations (shown below) largely reflect intercompany sales from Composites to Roofing. 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 | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Reportable Segments | |||||||
Composites | $ | 478 | $ | 477 | |||
Insulation | 379 | 355 | |||||
Roofing | 393 | 497 | |||||
Total reportable segments | 1,250 | 1,329 | |||||
Corporate eliminations | (43 | ) | (51 | ) | |||
NET SALES | $ | 1,207 | $ | 1,278 | |||
External Customer Sales by Geographic Region | |||||||
United States | $ | 816 | $ | 889 | |||
Europe | 129 | 149 | |||||
Asia Pacific | 140 | 137 | |||||
Other | 122 | 103 | |||||
NET SALES | $ | 1,207 | $ | 1,278 | |||
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 | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Reportable Segments | |||||||
Composites | $ | 60 | $ | 27 | |||
Insulation | 7 | 1 | |||||
Roofing | 20 | 80 | |||||
Total reportable segments | 87 | 108 | |||||
Charges related to cost reduction actions | — | (12 | ) | ||||
Other items related to cost reduction actions | (2 | ) | — | ||||
Gain on sale of Hangzhou, China facility | — | 45 | |||||
Net loss related to Hurricane Sandy | — | (2 | ) | ||||
General corporate expense and other | (27 | ) | (31 | ) | |||
EBIT | $ | 58 | $ | 108 | |||
INVENTORIES
INVENTORIES | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Inventory, Net [Abstract] | |||||||
INVENTORIES | INVENTORIES | ||||||
Inventories consist of the following (in millions): | |||||||
31-Mar-15 | 31-Dec-14 | ||||||
Finished goods | $ | 580 | $ | 568 | |||
Materials and supplies | 245 | 249 | |||||
Total inventories | $ | 825 | $ | 817 | |||
DERIVATIVE_FINANCIAL_INSTRUMEN
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 March 31, 2015, and December 31, 2014, 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 | 31-Mar-15 | 31-Dec-14 | ||||||
Derivative assets designated as hedging instruments: | ||||||||
Net investment hedges: | ||||||||
Cross currency swaps | Other current assets | $ | 3 | $ | — | |||
Cross currency swaps | Other non current assets | $ | 9 | $ | — | |||
Amount of gain recognized in OCI (effective portion) | OCI | $ | 12 | $ | — | |||
Fair value hedges: | ||||||||
Interest rate swaps | Other non current assets | $ | 5 | $ | — | |||
Derivative liabilities designated as hedging instruments: | ||||||||
Cash flow hedges: | ||||||||
Natural gas and electricity, and foreign exchange contracts | Accounts payable and | $ | 6 | $ | 9 | |||
accrued liabilities | ||||||||
Amount of loss recognized in OCI (effective portion) | OCI | $ | 7 | $ | 8 | |||
Fair value hedges: | ||||||||
Interest rate swaps | Other Liabilities | $ | — | $ | (3 | ) | ||
Derivative assets not designated as hedging instruments: | ||||||||
Foreign exchange contracts | Other current assets | $ | 1 | $ | 1 | |||
Derivative liabilities not designated as hedging instruments: | ||||||||
Foreign exchange contracts | Accounts payable and | $ | 1 | $ | 2 | |||
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 | ||||||||
March 31, | ||||||||
Location | 2015 | 2014 | ||||||
Derivative activity designated as hedging instruments: | ||||||||
Natural gas and electricity: | ||||||||
Amount of loss reclassified from OCI into earnings (effective portion) | Cost of sales | $ | 3 | $ | (1 | ) | ||
Derivative activity not designated as hedging instruments: | ||||||||
Foreign currency exchange contract: | ||||||||
Amount of loss recognized in earnings (a) | Other expenses (income), net | $ | 1 | $ | (1 | ) | ||
(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 expenses (income), net. | |||||||
Cash Flow Hedges | ||||||||
The Company uses forward and swap contracts, which qualify as cash flow hedges, to manage forecasted exposure to natural gas and electricity 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 expenses (income), 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 60% of its total forecasted exposures for the following four months, and lesser amounts for the remaining periods. The Company's policy for electricity exposures is to hedge up to 75% of its total forecasted exposures for the current calendar year and up to 65% of its total forecasted exposures for the first calendar year forward. 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 March 31, 2015, $7 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. | ||||||||
Net Investment Hedges | ||||||||
During the first quarter of 2015, the Company entered into cross currency forward contracts to hedge a portion of the net investment in foreign subsidiaries against fluctuations in foreign exchange rates. For derivative instruments that are designated and qualify as hedges of net investments in foreign operations, settlements and changes in fair values of the derivative instruments are recognized in Currency translation adjustment, a component of Accumulated OCI, to offset the changes in the values of the net investments being hedged. Any portion of net investment hedges that is determined to be ineffective is recorded in Other expenses (income), 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 expenses (income), net on the Consolidated Statements of Earnings. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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): | ||||||||||||||||||||
31-Mar-15 | Weighted | Gross | Accumulated | Net Carrying | ||||||||||||||||
Average | Carrying | Amortization | Amount | |||||||||||||||||
Useful Life | Amount | |||||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||||||
Customer relationships | 19 | $ | 172 | $ | (75 | ) | $ | 97 | ||||||||||||
Technology | 20 | 193 | (85 | ) | 108 | |||||||||||||||
Franchise and other agreements | 11 | 41 | (19 | ) | 22 | |||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||
Trademarks | 786 | — | 786 | |||||||||||||||||
Total intangible assets | $ | 1,192 | $ | (179 | ) | $ | 1,013 | |||||||||||||
Goodwill | $ | 1,168 | ||||||||||||||||||
31-Dec-14 | Weighted | Gross | Accumulated | Net Carrying | ||||||||||||||||
Average | Carrying | Amortization | Amount | |||||||||||||||||
Useful Life | Amount | |||||||||||||||||||
Amortizable intangible assets: | ||||||||||||||||||||
Customer relationships | 19 | $ | 172 | $ | (72 | ) | $ | 100 | ||||||||||||
Technology | 20 | 193 | (83 | ) | 110 | |||||||||||||||
Franchise and other agreements | 12 | 39 | (18 | ) | 21 | |||||||||||||||
Indefinite-lived intangible assets: | ||||||||||||||||||||
Trademarks | 786 | — | 786 | |||||||||||||||||
Total intangible assets | $ | 1,190 | $ | (173 | ) | $ | 1,017 | |||||||||||||
Goodwill | $ | 1,168 | ||||||||||||||||||
The changes in the gross carrying amount of amortizable intangible assets by asset group are as follows (in millions): | ||||||||||||||||||||
Customer relationships | Technology | Franchise and other agreements | Trademarks | Total | ||||||||||||||||
Balance at December 31, 2014 | $ | 172 | $ | 193 | $ | 39 | $ | 786 | $ | 1,190 | ||||||||||
Additional Franchises and Agreements | — | — | 2 | — | 2 | |||||||||||||||
Balance at March 31, 2015 | $ | 172 | $ | 193 | $ | 41 | $ | 786 | $ | 1,192 | ||||||||||
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 first quarter of 2015. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
PROPERTY, PLANT AND EQUIPTMENT | PROPERTY, PLANT AND EQUIPMENT | ||||||
Property, plant and equipment consist of the following (in millions): | |||||||
March 31, | December 31, 2014 | ||||||
2015 | |||||||
Land | $ | 191 | $ | 196 | |||
Buildings and leasehold improvements | 785 | 789 | |||||
Machinery and equipment | 3,389 | 3,405 | |||||
Construction in progress | 238 | 233 | |||||
4,603 | 4,623 | ||||||
Accumulated depreciation | (1,752 | ) | (1,724 | ) | |||
Property, plant and equipment, net | $ | 2,851 | $ | 2,899 | |||
Machinery and equipment includes certain precious metals used in our production tooling, which comprise approximately 16% and 15% of total machinery and equipment as of March 31, 2015, and December 31, 2014, respectively. 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% of the outstanding carrying value. |
DIVESTITURES
DIVESTITURES | 3 Months Ended |
Mar. 31, 2015 | |
Business Divestitures [Abstract] | |
DIVESTITURES | DIVESTITURES |
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 consideration 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 was recorded in Other expenses(income), net on the Consolidated Statements of Earnings (Loss). The balance of the consideration, 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 second half of 2015. |
ASSETS_HELD_FOR_SALE
ASSETS HELD FOR SALE | 3 Months Ended |
Mar. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE |
Assets held for sale consists of Property, plant and equipment related to two closed facilities in Alcala, Spain and Vado, Italy. |
WARRANTIES
WARRANTIES | 3 Months Ended | |||
Mar. 31, 2015 | ||||
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): | ||||
Three Months Ended March 31, 2015 | ||||
Beginning balance | $ | 40 | ||
Amounts accrued for current year | 5 | |||
Settlements of warranty claims | (3 | ) | ||
Ending balance | $ | 42 | ||
COST_REDUCTION_ACTIONS
COST REDUCTION ACTIONS | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||
COST REDUCTION ACTIONS | COST REDUCTION ACTIONS | |||||||||||||||||||||||
2014 Cost Reduction Actions | ||||||||||||||||||||||||
In the fourth quarter of 2014, the Company announced organizational changes to streamline its management structure and reduce costs. As part of this action, the Building Materials Group organizational structure was eliminated. In conjunction with this action, the Company recognized $9 million in severance charges for the year ended December 31, 2014. There were no additional costs incurred in the first quarter of 2015. | ||||||||||||||||||||||||
The Company took actions in the third quarter of 2014 to reduce costs in its Composites segment. 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, the Company recognized $16 million in severance charges, $3 million in contract termination charges, and $1 million net gain in other related charges for the year ended December 31, 2014. During the first quarter of 2015, the Company recognized $2 million in charges for items related to cost reduction actions. | ||||||||||||||||||||||||
In addition, in the first quarter of 2014, the Company took actions in our Composites segment related to global workforce reductions and the termination of a contract with a utility services provider. In conjunction with these actions, the Company recorded in the first quarter of 2014 $14 million in charges related to cost reduction actions, of which $11 million is related to severance and $3 million is related to contract termination charges. During the fourth quarter of 2014, the charges related to contract termination were recovered through a settlement. There were no additional costs incurred in the first quarter of 2015. | ||||||||||||||||||||||||
The following table summarizes the status of the unpaid liabilities from the Company’s 2014 cost reduction actions (in millions): | ||||||||||||||||||||||||
Balance at December 31, 2014 | Costs | Payments | Foreign Currency Translation | Balance at March 31, 2015 | Cumulative | |||||||||||||||||||
Incurred | Charges | |||||||||||||||||||||||
Incurred | ||||||||||||||||||||||||
Severance | $ | 31 | $ | — | $ | 3 | $ | (1 | ) | $ | 27 | $ | 36 | |||||||||||
Contract Termination | 3 | — | — | — | 3 | 3 | ||||||||||||||||||
Total | $ | 34 | $ | — | $ | 3 | $ | (1 | ) | $ | 30 | $ | 39 | |||||||||||
The Company expects the unpaid balance of these severance and contract termination charges to be paid over the next year. |
DEBT
DEBT | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
DEBT | DEBT | ||||||
Details of the Company’s outstanding long-term debt are as follows (in millions): | |||||||
31-Mar-15 | 31-Dec-14 | ||||||
6.50% senior notes, net of discount, due 2016 | $ | 158 | $ | 158 | |||
9.00% senior notes, net of discount, due 2019 | 143 | 143 | |||||
4.20% senior notes, net of discount, due 2022 | 600 | 600 | |||||
4.20% senior notes, net of discount, due 2024 | 393 | 392 | |||||
7.00% senior notes, net of discount, due 2036 | 540 | 540 | |||||
Accounts receivable securitization facility, maturing in 2018 | 237 | 106 | |||||
Senior revolving credit facility, maturing in 2018 | 151 | — | |||||
Various capital leases, due through and beyond 2050 | 46 | 47 | |||||
Fair value adjustment to debt | 9 | 8 | |||||
Total long-term debt | 2,277 | 1,994 | |||||
Less – current portion | 3 | 3 | |||||
Long-term debt, net of current portion | $ | 2,274 | $ | 1,991 | |||
Senior Notes | |||||||
The Company issued $400 million of 2024 senior notes on November 12, 2014 at 4.20%. The Company paid $4 million in loan costs in connection with the 2024 notes. These costs were deferred and are being amortized over the term of the 2024 notes. Interest on the notes is payable semiannually in arrears on June 1 and December 1 each year, beginning on June 1, 2015. The proceeds from these notes were used to repay $242 million of our 2016 senior notes, $105 million of our 2019 senior notes and to pay down our Senior Revolving Credit Facility. | |||||||
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, the Company 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 March 31, 2015. | |||||||
In the fourth quarter of 2011, the Company terminated the interest rate swaps designated to hedge a portion of the 6.5% 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% 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 March 31, 2015. | |||||||
As of March 31, 2015, the Company utilized its senior revolving credit facility for $151 million of borrowings and $9 million of outstanding letters of credit, and has $640 million available on this facility. | |||||||
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 securitization facility was amended in November of 2013 to extend its maturity to July 2016 and to reduce the size of the facility to $200 million during the months of November, December, and January. The securitization facility was amended in January of 2015 to extend its maturity to January 2018 and remove the seasonal reduction of the facility restoring the full $250 million of facility capacity during the months of November, December, and January. As of March 31, 2015, the Company fully utilized its receivables securitization facility for $237 million in borrowings and $13 million of outstanding letters of credit. | |||||||
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 March 31, 2015. | |||||||
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 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 March 31, 2015 and December 31, 2014, short-term borrowings were $14 million and $31 million, respectively. The short-term borrowings for both periods consisted of various operating lines of credit and working capital facilities. Certain of these borrowings are collateralized by receivables, inventories or property. The borrowing facilities are typically for one-year renewable terms. The weighted average interest rate on all short-term borrowings was approximately 4.3% for March 31, 2015 and 7.2% for December 31, 2014. |
PENSION_PLANS_AND_OTHER_POSTRE
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |||||||||||||||||||
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 March 31, 2015 | Three Months Ended March 31, 2014 | ||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | ||||||||||||||
Components of Net Periodic Pension Cost | |||||||||||||||||||
Service cost | $ | 2 | $ | 1 | $ | 3 | $ | 2 | $ | 1 | $ | 3 | |||||||
Interest cost | 11 | 5 | 16 | 12 | 6 | 18 | |||||||||||||
Expected return on plan assets | (15 | ) | (6 | ) | (21 | ) | (14 | ) | (7 | ) | (21 | ) | |||||||
Amortization of actuarial loss | 4 | 1 | 5 | 2 | 1 | 3 | |||||||||||||
Net periodic pension cost | $ | 2 | $ | 1 | $ | 3 | $ | 2 | $ | 1 | $ | 3 | |||||||
The Company expects to contribute approximately $48 million in cash to the United States Pension Plans and another $14 million to non-United States plans during 2015. The Company made cash contributions of approximately $14 million to the plans during the three months ended March 31, 2015. | |||||||||||||||||||
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 | |||||||||||||||||||
March 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||
Service cost | $ | 1 | $ | 1 | |||||||||||||||
Interest cost | 2 | 3 | |||||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | |||||||||||||||
Amortization of actuarial gain | — | (1 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 2 | $ | 2 | |||||||||||||||
CONTINGENT_LIABILITIES_AND_OTH
CONTINGENT LIABILITIES AND OTHER MATTERS | 3 Months Ended |
Mar. 31, 2015 | |
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 claims, 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. | |
Litigation | |
The Company is involved in litigation from time to time in the regular course of its business. The Company believes that adequate provisions for resolution of all contingencies, claims and pending litigation have been made for probable losses that are reasonably estimable. The Company does not believe that the ultimate outcome of these actions will have a material adverse effect on its financial condition, results of operations or cash flows. | |
Environmental Matters | |
The Company has been deemed by the United States Environmental Protection Agency to be a Potentially Responsible Party (“PRP”) with respect to certain sites under the Comprehensive Environmental Response Compensation and Liability Act. The Company has also been deemed a PRP under similar state or local laws and in other instances other PRPs have brought suits against it as a PRP for contribution under such federal, state, or local laws. At March 31, 2015, the Company had environmental remediation liabilities as a PRP at 21 sites where it has a continuing legal obligation to either complete remedial actions or contribute to the completion of remedial actions as part of a group of PRPs. Environmental liability estimates may be affected by changing determinations of what constitutes an environmental exposure or an acceptable level of cleanup. To the extent that the required remediation procedures or timing of those procedures change, additional contamination is identified, or the financial condition of other PRPs is adversely affected, the estimate of our environmental liabilities may change. For these sites the Company estimates a reserve to reflect environmental liabilities that have been asserted or are probable of assertion, in which liabilities are probable and reasonably estimable. At March 31, 2015, our reserve for such liabilities was $3 million. Changes in required remediation procedures or timing of those procedures at existing legacy sites, or discovery of contamination at additional sites, could result in increases to our environmental obligations. |
STOCK_COMPENSATION
STOCK COMPENSATION | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
STOCK COMPENSATION | STOCK COMPENSATION | ||||||||||||
Stock Plans | |||||||||||||
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. 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 March 31, 2015, the number of shares remaining available under the 2013 Stock Plan for all stock awards was 1.8 million. | |||||||||||||
Stock Options | |||||||||||||
The Company did not grant any stock options during the quarter ended March 31, 2015. 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. | |||||||||||||
During the three months ended March 31, 2015 and 2014, the Company recognized expense of $1 million related to the Company’s stock options, respectively. As of March 31, 2015, there was $7 million of total unrecognized compensation cost related to stock options. That cost is expected to be recognized over a weighted-average period of 2.39 years. The total aggregate intrinsic value of options outstanding as of March 31, 2015 and 2014 was $31 million and $36 million, respectively. | |||||||||||||
The following table summarizes the Company’s stock option activity for the three months ended March 31, 2015: | |||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||
Number of | Weighted- | ||||||||||||
Options | Average | ||||||||||||
Exercise Price | |||||||||||||
Beginning Balance | 2,754,895 | $ | 31.04 | ||||||||||
Exercised | (236,875 | ) | 29.34 | ||||||||||
Forfeited | (19,500 | ) | 37.84 | ||||||||||
Ending Balance | 2,498,520 | $ | 31.15 | ||||||||||
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 | ||||||||||||
Range of Exercise Prices | Remaining | Exercise | at March 31, 2015 | Remaining | Exercise | ||||||||
Contractual Life | Price | Contractual Life | Price | ||||||||||
$13.89-$42.16 | 2,498,520 | 4.71 | $ | 31.15 | 2,011,245 | 4.01 | $ | 29.4 | |||||
Restricted Stock Awards and Restricted Stock Units | |||||||||||||
The Company has granted restricted stock awards and restricted stock units (collectively referred to as “restricted stock”) as a part of its long-term incentive plan. 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 months ended March 31, 2015 and 2014 the Company recognized expense of $4 million, respectively, related to the Company’s restricted stock. As of March 31, 2015, there was $39 million of total unrecognized compensation cost related to restricted stock. That cost is expected to be recognized over a weighted-average period of 3.11 years. The total fair value of shares vested during the three months ended March 31, 2015 and 2014 was $15 million and $13 million, respectively. | |||||||||||||
A summary of the status of the Company’s plans that had restricted stock issued as of March 31, 2015, and changes during the three months ended March 31, 2015, are presented below: | |||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||
Number of Shares | Weighted-Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Beginning Balance | 1,727,741 | $ | 33.58 | ||||||||||
Granted | 552,753 | 39.37 | |||||||||||
Vested | (419,147 | ) | 35.83 | ||||||||||
Forfeited | (30,772 | ) | 37.49 | ||||||||||
Ending Balance | 1,830,575 | $ | 34.89 | ||||||||||
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. All outstanding performance grants will fully settle in stock. The amount of stock ultimately distributed from the 2015 grants is contingent on meeting internal company-based metrics or an external-based stock performance metric. The amount of stock ultimately distributed from 2014 and prior grants is contingent on meeting an external based stock performance metric. | |||||||||||||
In the first three months of 2015, the Company granted both internal company-based and external-based metric PSUs. | |||||||||||||
Internal based metrics | |||||||||||||
The internal company-based metrics vests after a three-year period and are based on return on invested capital over a three-year period. The amount of stock distributed will vary from 0% to 300% of PSUs awarded depending on performance versus the company-based performance metrics. | |||||||||||||
The initial fair value for all internal company-based metric PSUs assumes that the performance goals will be achieved and is based on the grant date stock price. This assumption is monitored quarterly and if it becomes probable that such goals will not be achieved or will be exceeded, compensation expense recognized will be adjusted and previous surplus compensation expense recognized will be reversed or additional expense will be recognized. | |||||||||||||
External based metrics | |||||||||||||
The external-based metric vests after a three-year period. Outstanding grants issued in 2015 forward will be based on the Company's total stockholder return relative to the performance of the S&P Building & Construction Industry Index and outstanding grants issued prior to 2015 are based on the Company's total stockholder return relative to the performance of the companies in the S&P 500 Index. The amount of stock distributed will vary from 0% to 200% of PSUs awarded depending on the relative stockholder return performance. | |||||||||||||
The Company estimated the fair value of the external-based metric performance stock grants using a Monte Carlo simulation that uses various assumptions that include expected volatility of 29.2%, and a risk free interest rate of 1.1% both of which were based on an expected term of 2.90 years. Expected volatility was based on a benchmark study of our peers. The risk-free interest rate was based on zero coupon United States Treasury bills at the time of grant. The expected term represents the period from the grant date to the end of the three-year performance period. Compensation expense for external based metric PSUs is measured based on the grant date fair value 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. | |||||||||||||
During the three months ended March 31, 2015, and 2014 the Company recognized expense of $2 million related to the Company’s PSUs, respectively. As of March 31, 2015, there was $16 million of total unrecognized compensation cost related to PSUs. That cost is expected to be recognized over a weighted-average period of 2.20 years. | |||||||||||||
A summary of the status of the Company’s plans that had PSUs issued as of March 31, 2015, and changes during the three months ended March 31, 2015, is presented below: | |||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||
Number | Weighted-Average | ||||||||||||
of PSUs | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Beginning Balance | 416,250 | $ | 49.53 | ||||||||||
Granted | 251,600 | 44.98 | |||||||||||
Forfeited | (15,850 | ) | 50.16 | ||||||||||
Ending Balance | 652,000 | $ | 47.76 | ||||||||||
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 months ended March 31, 2015 and 2014, the Company had expense of $0.5 million and $0.4 million. respectively. As of March 31, 2015, there was $1 million of total unrecognized compensation cost related to the ESPP. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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 | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Net earnings attributable to Owens Corning | $ | 18 | $ | 120 | |||
Weighted-average number of shares outstanding used for basic earnings per share | 117.8 | 117.8 | |||||
Non-vested restricted and performance shares | 0.3 | 0.4 | |||||
Options to purchase common stock | 0.4 | 0.5 | |||||
Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share | 118.5 | 118.7 | |||||
Earnings per common share attributable to Owens Corning common stockholders: | |||||||
Basic | $ | 0.15 | $ | 1.02 | |||
Diluted | $ | 0.15 | $ | 1.01 | |||
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. | |||||||
In 2012, the Company approved 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 “Repurchase Program”). The Repurchase Program authorizes 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. The Company repurchased 0.3 million shares of its common stock for $13 million during the three months ended March 31, 2015 under the Repurchase Program. As of March 31, 2015, 7.4 million shares remain available for repurchase under the Repurchase Program. | |||||||
For the three months ended March 31, 2015, the number of shares used in the calculation of diluted earnings per share did not include 0.1 million non-vested Restricted and Performance shares and 0.6 million of options to purchase common stock, due to their anti-dilutive effect. | |||||||
For the three months ended March 31, 2014, the number of shares used in the calculation of diluted earnings per share did not include 0.5 million non-vested Restricted and Performance shares and 0.7 million of options to purchase common stock, due to their anti-dilutive effect. |
FAIR_VALUE_MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT | ||||||||||||
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. | |||||||||||||
Items Measured at Fair Value | |||||||||||||
The carrying value of cash and cash equivalents, accounts receivable and short-term debt approximate fair value because of the short-term maturity of the instruments. | |||||||||||||
Derivatives | |||||||||||||
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, 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 a significant input 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, which is a Level 3 input. The fair value of the put/call as of March 31, 2015 is $6 million and has been recorded in Other liabilities on the Consolidated Balance Sheet. The change in fair value of $1 million for the three months ended March 31, 2015 was recognized in Interest expense, net on the Consolidated Statement of Earnings. | |||||||||||||
The following table summarizes the fair values and levels within the fair value hierarchy in which the fair value measurements fall as of March 31, 2015 (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: | |||||||||||||
Derivative assets | $ | 18 | $ | — | $ | 18 | $ | — | |||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 7 | $ | — | $ | 7 | $ | — | |||||
Contingent consideration | 6 | — | — | 6 | |||||||||
Total liabilities | $ | 13 | $ | — | $ | 7 | $ | 6 | |||||
The following table summarizes the fair values and levels within the fair value hierarchy in which the fair value measurements fall as of December 31, 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: | |||||||||||||
Derivative assets | $ | 1 | $ | — | $ | 1 | $ | — | |||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 8 | $ | — | $ | 8 | $ | — | |||||
Contingent consideration | 5 | — | — | 5 | |||||||||
Total liabilities | $ | 13 | $ | — | $ | 8 | $ | 5 | |||||
Items Disclosed at Fair Value | |||||||||||||
Long-term debt | |||||||||||||
The following table shows the fair value of the Company’s long-term debt as calculated based on quoted market prices for the same or similar issues (Level 2 input), or on the current rates offered to the Company for debt of the same remaining maturities: | |||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||
6.50% senior notes, net of discount, due 2016 | 108 | % | 109 | % | |||||||||
9.00% senior notes, net of discount, due 2019 | 121 | % | 119 | % | |||||||||
4.20% senior notes, net of discount, due 2022 | 105 | % | 101 | % | |||||||||
4.20% senior notes, net of discount, due 2024 | 103 | % | 99 | % | |||||||||
7.00% senior notes, net of discount, due 2036 | 124 | % | 124 | % |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES |
Income tax expense (benefit) for the three months ended March 31, 2015 was $13 million, for an effective tax rate of 41%. The difference between the effective tax rate and the U.S. federal statutory rate tax of 35% is primarily attributable to the tax accounting treatment of various locations which are currently in a loss position and other discrete adjustments in the first quarter 2015. | |
Income tax expense (benefit) for the three months ended March 31, 2014, was ($39) million for an effective tax rate benefit of (48)%. The difference between the effective tax rate benefit and the U.S. federal statutory tax rate of 35% 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 were in a loss position in the first quarter 2014. |
CHANGES_IN_ACCUMULATED_OTHER_C
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE DEFICIT | |||||||||||||||
The following table summarizes the changes in accumulated other comprehensive income (deficit) (“AOCI”) for the three months ended March 31, 2015 (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, 2014, net of tax | $ | (5 | ) | $ | (290 | ) | $ | (122 | ) | $ | (133 | ) | $ | (550 | ) | |
Amounts classified into AOCI, net of tax (a) | 1 | 2 | 2 | (50 | ) | (45 | ) | |||||||||
Amounts reclassified from AOCI, net of tax | — | 4 | — | — | 4 | |||||||||||
Change in AOCI, net of tax | 1 | 6 | 2 | (50 | ) | (41 | ) | |||||||||
Balance as of March 31, 2015, net of tax | $ | (4 | ) | $ | (284 | ) | $ | (120 | ) | $ | (183 | ) | $ | (591 | ) | |
(a) | $8 million of the amounts classified into AOCI, net of tax from Foreign Currency Translation Adjustment was due to the company's net investment hedge, as discussed in Note 4. | |||||||||||||||
The following table summarizes the changes in accumulated other comprehensive income (deficit) (“AOCI”) for the three months ended March 31, 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 | — | 4 | — | (16 | ) | (12 | ) | |||||||||
Amounts reclassified from AOCI, net of tax | — | (1 | ) | — | — | (1 | ) | |||||||||
Change in AOCI, net of tax | — | 3 | — | (16 | ) | (13 | ) | |||||||||
Balance as of March 31, 2014, net of tax | $ | — | $ | (181 | ) | $ | (115 | ) | $ | (14 | ) | $ | (310 | ) | ||
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 | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Defined Benefit Pension Plan Activity: | ||||||||||||||||
Cost of sales | $ | 4 | $ | (1 | ) | |||||||||||
Total reclassifications from AOCI | $ | 4 | $ | (1 | ) | |||||||||||
ACCOUNTING_PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS |
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 the Company on January 1, 2017. | |
In April 2015, the FASB issued ASU No. 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"). ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a debt discount. Prior to the issuance of the standard, debt issuance costs were required to be presented in the balance sheet as an asset. The Company is currently assessing the impact that adopting this new accounting guidance will have on its consolidated financial statements and footnote disclosures. ASU 2015-03 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Accordingly, the standard is effective for the Company on January 1, 2016. |
CONDENSED_CONSOLIDATED_FINANCI
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 MARCH 31, 2015 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET SALES | $ | — | $ | 841 | $ | 461 | $ | (95 | ) | $ | 1,207 | |||||
COST OF SALES | — | 721 | 372 | (95 | ) | 998 | ||||||||||
Gross margin | — | 120 | 89 | — | 209 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Marketing and administrative expenses | 32 | 68 | 29 | — | 129 | |||||||||||
Science and technology expenses | — | 14 | 3 | — | 17 | |||||||||||
Charges related to cost reduction actions | — | — | — | — | — | |||||||||||
Other expenses (income), net | (8 | ) | 6 | 7 | — | 5 | ||||||||||
Total operating expenses | 24 | 88 | 39 | — | 151 | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (24 | ) | 32 | 50 | — | 58 | ||||||||||
Interest expense, net | 24 | 1 | 1 | — | 26 | |||||||||||
EARNINGS BEFORE TAXES | (48 | ) | 31 | 49 | — | 32 | ||||||||||
Less: Income tax expense (benefit) | (15 | ) | 9 | 19 | — | 13 | ||||||||||
Equity in net earnings of subsidiaries | 51 | 29 | — | (80 | ) | — | ||||||||||
NET EARNINGS | 18 | 51 | 30 | (80 | ) | 19 | ||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 18 | $ | 51 | $ | 29 | $ | (80 | ) | $ | 18 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF EARNINGS | ||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET SALES | $ | — | $ | 911 | $ | 456 | $ | (89 | ) | $ | 1,278 | |||||
COST OF SALES | — | 751 | 382 | (89 | ) | 1,044 | ||||||||||
Gross margin | — | 160 | 74 | — | 234 | |||||||||||
OPERATING EXPENSES | ||||||||||||||||
Marketing and administrative expenses | 32 | 66 | 34 | — | 132 | |||||||||||
Science and technology expenses | — | 15 | 4 | — | 19 | |||||||||||
Charges related to cost reduction actions | — | 1 | 11 | — | 12 | |||||||||||
Other expenses (income), net | (10 | ) | 2 | (29 | ) | — | (37 | ) | ||||||||
Total operating expenses | 22 | 84 | 20 | — | 126 | |||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (22 | ) | 76 | 54 | — | 108 | ||||||||||
Interest expense, net | 26 | 1 | — | — | 27 | |||||||||||
EARNINGS BEFORE TAXES | (48 | ) | 75 | 54 | — | 81 | ||||||||||
Less: Income tax expense (benefit) | (18 | ) | (13 | ) | (8 | ) | — | (39 | ) | |||||||
Equity in net earnings of subsidiaries | 150 | 62 | — | (212 | ) | — | ||||||||||
NET EARNINGS | 120 | 150 | 62 | (212 | ) | 120 | ||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 120 | $ | 150 | $ | 62 | $ | (212 | ) | $ | 120 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS (LOSS) | ||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET EARNINGS | $ | 18 | $ | 51 | $ | 30 | $ | (80 | ) | $ | 19 | |||||
Currency translation adjustment (net of tax) | (50 | ) | — | — | — | (50 | ) | |||||||||
Pension and other postretirement adjustment (net of tax) | 8 | — | — | — | 8 | |||||||||||
Deferred gain on hedging (net of tax) | 1 | — | — | — | 1 | |||||||||||
COMPREHENSIVE EARNINGS (LOSS) | (23 | ) | 51 | 30 | (80 | ) | (22 | ) | ||||||||
Less: Comprehensive earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||
COMPREHENSIVE EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | $ | (23 | ) | $ | 51 | $ | 29 | $ | (80 | ) | $ | (23 | ) | |||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS (LOSS) | ||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||
NET EARNINGS | $ | 120 | $ | 150 | $ | 62 | $ | (212 | ) | $ | 120 | |||||
Currency translation adjustment (net of tax) | (16 | ) | — | — | — | (16 | ) | |||||||||
Pension and other postretirement adjustment (net of tax) | 3 | — | — | — | 3 | |||||||||||
Deferred gain on hedging (net of tax) | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS (LOSS) | 107 | 150 | 62 | (212 | ) | 107 | ||||||||||
Less: Comprehensive earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||
COMPREHENSIVE EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | $ | 107 | $ | 150 | $ | 62 | $ | (212 | ) | $ | 107 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||
AS OF MARCH 31, 2015 | ||||||||||||||||
(in millions) | ||||||||||||||||
ASSETS | Parent | Guarantor | Non- | Eliminations | Consolidated | |||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | — | $ | 4 | $ | 73 | $ | — | $ | 77 | ||||||
Receivables, less allowances | — | — | 844 | — | 844 | |||||||||||
Due from affiliates | — | 2,666 | 76 | (2,742 | ) | — | ||||||||||
Inventories | — | 540 | 285 | — | 825 | |||||||||||
Assets held for sale | — | — | 14 | — | 14 | |||||||||||
Other current assets | 8 | 138 | 89 | — | 235 | |||||||||||
Total current assets | 8 | 3,348 | 1,381 | (2,742 | ) | 1,995 | ||||||||||
Investment in subsidiaries | 7,502 | 2,457 | 559 | (10,518 | ) | — | ||||||||||
Due from affiliates | — | — | 826 | (826 | ) | — | ||||||||||
Property, plant and equipment, net | 359 | 1,404 | 1,088 | — | 2,851 | |||||||||||
Goodwill | — | 1,127 | 41 | — | 1,168 | |||||||||||
Intangible assets | — | 985 | 231 | (203 | ) | 1,013 | ||||||||||
Deferred income taxes | 31 | 380 | 23 | — | 434 | |||||||||||
Other non-current assets | 42 | 66 | 127 | — | 235 | |||||||||||
TOTAL ASSETS | $ | 7,942 | $ | 9,767 | $ | 4,276 | $ | (14,289 | ) | $ | 7,696 | |||||
LIABILITIES AND EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 57 | $ | 454 | $ | 384 | $ | — | $ | 895 | ||||||
Due to affiliates | 1,816 | — | 926 | (2,742 | ) | — | ||||||||||
Short-term debt | — | — | 14 | — | 14 | |||||||||||
Long-term debt – current portion | — | 1 | 2 | — | 3 | |||||||||||
Total current liabilities | 1,873 | 455 | 1,326 | (2,742 | ) | 912 | ||||||||||
Long-term debt, net of current | 2,004 | 15 | 255 | — | 2,274 | |||||||||||
Due to affiliates | — | 826 | — | (826 | ) | — | ||||||||||
Pension plan liability | 302 | — | 122 | — | 424 | |||||||||||
Other employee benefits liability | — | 235 | 14 | — | 249 | |||||||||||
Deferred income taxes | — | — | 22 | — | 22 | |||||||||||
Other liabilities | 119 | 175 | 41 | (203 | ) | 132 | ||||||||||
OWENS CORNING STOCKHOLDERS’ EQUITY | ||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||
Common stock | 1 | — | — | — | 1 | |||||||||||
Additional paid in capital | 3,946 | 6,433 | 1,763 | (8,196 | ) | 3,946 | ||||||||||
Accumulated earnings | 803 | 1,628 | 694 | (2,322 | ) | 803 | ||||||||||
Accumulated other comprehensive deficit | (591 | ) | — | — | — | (591 | ) | |||||||||
Cost of common stock in treasury | (515 | ) | — | — | — | (515 | ) | |||||||||
Total Owens Corning stockholders’ equity | 3,644 | 8,061 | 2,457 | (10,518 | ) | 3,644 | ||||||||||
Noncontrolling interests | — | — | 39 | — | 39 | |||||||||||
Total equity | 3,644 | 8,061 | 2,496 | (10,518 | ) | 3,683 | ||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 7,942 | $ | 9,767 | $ | 4,276 | $ | (14,289 | ) | $ | 7,696 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | ||||||||||||||||
AS OF DECEMBER 31, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
ASSETS | Parent | Guarantor | Non- | Eliminations | Consolidated | |||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | — | $ | 1 | $ | 66 | $ | — | $ | 67 | ||||||
Receivables, less allowances | — | — | 674 | — | 674 | |||||||||||
Due from affiliates | — | 2,858 | — | (2,858 | ) | — | ||||||||||
Inventories | — | 527 | 290 | — | 817 | |||||||||||
Assets held for sale | — | — | 16 | — | 16 | |||||||||||
Other current assets | 7 | 132 | 94 | — | 233 | |||||||||||
Total current assets | 7 | 3,518 | 1,140 | (2,858 | ) | 1,807 | ||||||||||
Investment in subsidiaries | 7,504 | 2,590 | 558 | (10,652 | ) | — | ||||||||||
Due from affiliates | — | — | 881 | (881 | ) | — | ||||||||||
Property, plant and equipment, net | 359 | 1,397 | 1,143 | — | 2,899 | |||||||||||
Goodwill | — | 1,127 | 41 | — | 1,168 | |||||||||||
Intangible assets | — | 989 | 238 | (210 | ) | 1,017 | ||||||||||
Deferred income taxes | 35 | 380 | 29 | — | 444 | |||||||||||
Other non-current assets | 30 | 62 | 128 | — | 220 | |||||||||||
TOTAL ASSETS | $ | 7,935 | $ | 10,063 | $ | 4,158 | $ | (14,601 | ) | $ | 7,555 | |||||
LIABILITIES AND EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Accounts payable and accrued liabilities | $ | 47 | $ | 667 | $ | 235 | $ | — | $ | 949 | ||||||
Due to affiliates | 1,913 | — | 945 | (2,858 | ) | — | ||||||||||
Short-term debt | — | 25 | 6 | — | 31 | |||||||||||
Long-term debt – current portion | — | 1 | 2 | — | 3 | |||||||||||
Total current liabilities | 1,960 | 693 | 1,188 | (2,858 | ) | 983 | ||||||||||
Long-term debt, net of current portion | 1,851 | 15 | 125 | — | 1,991 | |||||||||||
Due to affiliates | — | 881 | — | (881 | ) | — | ||||||||||
Pension plan liability | 310 | — | 137 | — | 447 | |||||||||||
Other employee benefits liability | — | 237 | 15 | — | 252 | |||||||||||
Deferred income taxes | — | — | 22 | — | 22 | |||||||||||
Other liabilities | 122 | 175 | 43 | (210 | ) | 130 | ||||||||||
OWENS CORNING STOCKHOLDERS’ EQUITY | ||||||||||||||||
Preferred stock | — | — | — | — | — | |||||||||||
Common stock | 1 | — | — | — | 1 | |||||||||||
Additional paid in capital | 3,954 | 6,483 | 1,927 | (8,410 | ) | 3,954 | ||||||||||
Accumulated earnings | 805 | 1,579 | 663 | (2,242 | ) | 805 | ||||||||||
Accumulated other comprehensive deficit | (550 | ) | — | — | — | (550 | ) | |||||||||
Cost of common stock in treasury | (518 | ) | — | — | — | (518 | ) | |||||||||
Total Owens Corning stockholders’ equity | 3,692 | 8,062 | 2,590 | (10,652 | ) | 3,692 | ||||||||||
Noncontrolling interests | — | — | 38 | — | 38 | |||||||||||
Total equity | 3,692 | 8,062 | 2,628 | (10,652 | ) | 3,730 | ||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 7,935 | $ | 10,063 | $ | 4,158 | $ | (14,601 | ) | $ | 7,555 | |||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
NET CASH FLOW USED FOR OPERATING ACTIVITIES | $ | — | $ | (157 | ) | $ | 8 | $ | — | $ | (149 | ) | ||||
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||||||||||||||||
Additions to plant and equipment (including alloy) | (3 | ) | (43 | ) | (10 | ) | — | (56 | ) | |||||||
Proceeds from the sale of assets (including alloy) or affiliates | — | — | — | — | — | |||||||||||
Net cash flow used for investing activities | (3 | ) | (43 | ) | (10 | ) | — | (56 | ) | |||||||
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||||||||||||||||
Proceeds from senior revolving credit and receivables securitization facilities | 398 | — | 131 | — | 529 | |||||||||||
Payments on senior revolving credit and receivables securitization facilities | (247 | ) | — | — | — | (247 | ) | |||||||||
Net increase (decrease) in short-term debt | — | (25 | ) | 8 | — | (17 | ) | |||||||||
Cash dividends paid | (39 | ) | — | — | — | (39 | ) | |||||||||
Purchases of treasury stock | (19 | ) | — | — | — | (19 | ) | |||||||||
Other intercompany loans | (97 | ) | 228 | (131 | ) | — | — | |||||||||
Other | 7 | — | — | — | 7 | |||||||||||
Net cash flow provided by financing activities | 3 | 203 | 8 | — | 214 | |||||||||||
Effect of exchange rate changes on cash | — | — | 1 | — | 1 | |||||||||||
Net increase in cash and cash equivalents | — | 3 | 7 | — | 10 | |||||||||||
Cash and cash equivalents at beginning of period | — | 1 | 66 | — | 67 | |||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 4 | $ | 73 | $ | — | $ | 77 | ||||||
OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | ||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2014 | ||||||||||||||||
(in millions) | ||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | ||||||||||||
Subsidiaries | Guarantor | |||||||||||||||
Subsidiaries | ||||||||||||||||
NET CASH FLOW USED FOR OPERATING ACTIVITIES | $ | — | $ | (222 | ) | $ | (50 | ) | $ | — | $ | (272 | ) | |||
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||||||||||||||||
Additions to plant and equipment (including alloy) | (3 | ) | (26 | ) | (22 | ) | — | (51 | ) | |||||||
Proceeds from the sale of assets (including alloy) or affiliates | — | — | (3 | ) | — | (3 | ) | |||||||||
Net cash flow used for investing activities | (3 | ) | (26 | ) | (25 | ) | — | (54 | ) | |||||||
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||||||||||||||||
Proceeds from senior revolving credit and receivables securitization facilities | 433 | — | 51 | — | 484 | |||||||||||
Payments on senior revolving credit and receivables securitization facilities | (149 | ) | — | — | — | (149 | ) | |||||||||
Net increase (decrease) in short-term debt | — | 1 | 23 | — | 24 | |||||||||||
Cash dividends paid | — | — | — | — | — | |||||||||||
Purchase of treasury stock | (29 | ) | — | — | — | (29 | ) | |||||||||
Other intercompany loans | (257 | ) | 247 | 10 | — | — | ||||||||||
Other | 5 | — | — | — | 5 | |||||||||||
Net cash flow provided by financing activities | 3 | 248 | 84 | — | 335 | |||||||||||
Effect of exchange rate changes on cash | — | — | (1 | ) | — | (1 | ) | |||||||||
Net increase in cash and cash equivalents | — | — | 8 | — | 8 | |||||||||||
Cash and cash equivalents at beginning of period | — | 3 | 54 | — | 57 | |||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 3 | $ | 62 | $ | — | $ | 65 | ||||||
SEGMENT_INFORMATION_TABLE
SEGMENT INFORMATION (TABLE) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Segment Reporting [Abstract] | |||||||
Reconciliation of Revenue from Segments to Consolidated | The following table summarizes our net sales by segment and geographic region (in millions). Corporate eliminations (shown below) largely reflect intercompany sales from Composites to Roofing. 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 | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Reportable Segments | |||||||
Composites | $ | 478 | $ | 477 | |||
Insulation | 379 | 355 | |||||
Roofing | 393 | 497 | |||||
Total reportable segments | 1,250 | 1,329 | |||||
Corporate eliminations | (43 | ) | (51 | ) | |||
NET SALES | $ | 1,207 | $ | 1,278 | |||
Schedule of Revenues by Geographical Areas | |||||||
External Customer Sales by Geographic Region | |||||||
United States | $ | 816 | $ | 889 | |||
Europe | 129 | 149 | |||||
Asia Pacific | 140 | 137 | |||||
Other | 122 | 103 | |||||
NET SALES | $ | 1,207 | $ | 1,278 | |||
Schedule of Earnings before Interest and Taxes | The following table summarizes EBIT by segment (in millions): | ||||||
Three Months Ended | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Reportable Segments | |||||||
Composites | $ | 60 | $ | 27 | |||
Insulation | 7 | 1 | |||||
Roofing | 20 | 80 | |||||
Total reportable segments | 87 | 108 | |||||
Charges related to cost reduction actions | — | (12 | ) | ||||
Other items related to cost reduction actions | (2 | ) | — | ||||
Gain on sale of Hangzhou, China facility | — | 45 | |||||
Net loss related to Hurricane Sandy | — | (2 | ) | ||||
General corporate expense and other | (27 | ) | (31 | ) | |||
EBIT | $ | 58 | $ | 108 | |||
INVENTORIES_TABLE
INVENTORIES (TABLE) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Inventory Disclosure [Abstract] | |||||||
Schedule of Inventory, Current | Inventories consist of the following (in millions): | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
Finished goods | $ | 580 | $ | 568 | |||
Materials and supplies | 245 | 249 | |||||
Total inventories | $ | 825 | $ | 817 | |||
DERIVATIVE_FINANCIAL_INSTRUMEN1
DERIVATIVE FINANCIAL INSTRUMENTS (TABLE) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | 31-Mar-15 | 31-Dec-14 | ||||||
Derivative assets designated as hedging instruments: | ||||||||
Net investment hedges: | ||||||||
Cross currency swaps | Other current assets | $ | 3 | $ | — | |||
Cross currency swaps | Other non current assets | $ | 9 | $ | — | |||
Amount of gain recognized in OCI (effective portion) | OCI | $ | 12 | $ | — | |||
Fair value hedges: | ||||||||
Interest rate swaps | Other non current assets | $ | 5 | $ | — | |||
Derivative liabilities designated as hedging instruments: | ||||||||
Cash flow hedges: | ||||||||
Natural gas and electricity, and foreign exchange contracts | Accounts payable and | $ | 6 | $ | 9 | |||
accrued liabilities | ||||||||
Amount of loss recognized in OCI (effective portion) | OCI | $ | 7 | $ | 8 | |||
Fair value hedges: | ||||||||
Interest rate swaps | Other Liabilities | $ | — | $ | (3 | ) | ||
Derivative assets not designated as hedging instruments: | ||||||||
Foreign exchange contracts | Other current assets | $ | 1 | $ | 1 | |||
Derivative liabilities not designated as hedging instruments: | ||||||||
Foreign exchange contracts | Accounts payable and | $ | 1 | $ | 2 | |||
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 | ||||||||
March 31, | ||||||||
Location | 2015 | 2014 | ||||||
Derivative activity designated as hedging instruments: | ||||||||
Natural gas and electricity: | ||||||||
Amount of loss reclassified from OCI into earnings (effective portion) | Cost of sales | $ | 3 | $ | (1 | ) | ||
Derivative activity not designated as hedging instruments: | ||||||||
Foreign currency exchange contract: | ||||||||
Amount of loss recognized in earnings (a) | Other expenses (income), net | $ | 1 | $ | (1 | ) | ||
(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 expenses (income), net. |
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (TABLE) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The changes in the gross carrying amount of amortizable intangible assets by asset group are as follows (in millions): | |||||||||||||||||||
Customer relationships | Technology | Franchise and other agreements | Trademarks | Total | ||||||||||||||||
Balance at December 31, 2014 | $ | 172 | $ | 193 | $ | 39 | $ | 786 | $ | 1,190 | ||||||||||
Additional Franchises and Agreements | — | — | 2 | — | 2 | |||||||||||||||
Balance at March 31, 2015 | $ | 172 | $ | 193 | $ | 41 | $ | 786 | $ | 1,192 | ||||||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (TABLE) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Property, Plant and Equipment [Abstract] | |||||||
Property, Plant and Equipment | Property, plant and equipment consist of the following (in millions): | ||||||
March 31, | December 31, 2014 | ||||||
2015 | |||||||
Land | $ | 191 | $ | 196 | |||
Buildings and leasehold improvements | 785 | 789 | |||||
Machinery and equipment | 3,389 | 3,405 | |||||
Construction in progress | 238 | 233 | |||||
4,603 | 4,623 | ||||||
Accumulated depreciation | (1,752 | ) | (1,724 | ) | |||
Property, plant and equipment, net | $ | 2,851 | $ | 2,899 | |||
WARRANTIES_TABLE
WARRANTIES (TABLE) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
Product Warranties Disclosures [Abstract] | ||||
Schedule of Product Warranty Liability | 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): | ||||
Three Months Ended March 31, 2015 | ||||
Beginning balance | $ | 40 | ||
Amounts accrued for current year | 5 | |||
Settlements of warranty claims | (3 | ) | ||
Ending balance | $ | 42 | ||
COST_REDUCTION_ACTIONS_TABLE
COST REDUCTION ACTIONS (TABLE) (Cost Reduction Actions 2014) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
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 liabilities from the Company’s 2014 cost reduction actions (in millions): | |||||||||||||||||||||||
Balance at December 31, 2014 | Costs | Payments | Foreign Currency Translation | Balance at March 31, 2015 | Cumulative | |||||||||||||||||||
Incurred | Charges | |||||||||||||||||||||||
Incurred | ||||||||||||||||||||||||
Severance | $ | 31 | $ | — | $ | 3 | $ | (1 | ) | $ | 27 | $ | 36 | |||||||||||
Contract Termination | 3 | — | — | — | 3 | 3 | ||||||||||||||||||
Total | $ | 34 | $ | — | $ | 3 | $ | (1 | ) | $ | 30 | $ | 39 | |||||||||||
The Company expects the unpaid balance of these severance and contract termination charges to be paid over the next year. |
DEBT_TABLE
DEBT (TABLE) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
Debt Disclosure [Abstract] | |||||||
Schedule of Long-term Debt Instruments | Details of the Company’s outstanding long-term debt are as follows (in millions): | ||||||
31-Mar-15 | 31-Dec-14 | ||||||
6.50% senior notes, net of discount, due 2016 | $ | 158 | $ | 158 | |||
9.00% senior notes, net of discount, due 2019 | 143 | 143 | |||||
4.20% senior notes, net of discount, due 2022 | 600 | 600 | |||||
4.20% senior notes, net of discount, due 2024 | 393 | 392 | |||||
7.00% senior notes, net of discount, due 2036 | 540 | 540 | |||||
Accounts receivable securitization facility, maturing in 2018 | 237 | 106 | |||||
Senior revolving credit facility, maturing in 2018 | 151 | — | |||||
Various capital leases, due through and beyond 2050 | 46 | 47 | |||||
Fair value adjustment to debt | 9 | 8 | |||||
Total long-term debt | 2,277 | 1,994 | |||||
Less – current portion | 3 | 3 | |||||
Long-term debt, net of current portion | $ | 2,274 | $ | 1,991 | |||
PENSION_AND_OTHER_POSTRETIREME
PENSION AND OTHER POSTRETIREMENT BENEFITS (TABLE) | 3 Months Ended | ||||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||||
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 March 31, 2015 | Three Months Ended March 31, 2014 | ||||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | ||||||||||||||
Components of Net Periodic Pension Cost | |||||||||||||||||||
Service cost | $ | 2 | $ | 1 | $ | 3 | $ | 2 | $ | 1 | $ | 3 | |||||||
Interest cost | 11 | 5 | 16 | 12 | 6 | 18 | |||||||||||||
Expected return on plan assets | (15 | ) | (6 | ) | (21 | ) | (14 | ) | (7 | ) | (21 | ) | |||||||
Amortization of actuarial loss | 4 | 1 | 5 | 2 | 1 | 3 | |||||||||||||
Net periodic pension cost | $ | 2 | $ | 1 | $ | 3 | $ | 2 | $ | 1 | $ | 3 | |||||||
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 | |||||||||||||||||||
March 31, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||||||
Service cost | $ | 1 | $ | 1 | |||||||||||||||
Interest cost | 2 | 3 | |||||||||||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | |||||||||||||||
Amortization of actuarial gain | — | (1 | ) | ||||||||||||||||
Net periodic benefit cost | $ | 2 | $ | 2 | |||||||||||||||
STOCK_COMPENSATION_TABLE
STOCK COMPENSATION (TABLE) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
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 three months ended March 31, 2015: | ||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||
Number of | Weighted- | ||||||||||||
Options | Average | ||||||||||||
Exercise Price | |||||||||||||
Beginning Balance | 2,754,895 | $ | 31.04 | ||||||||||
Exercised | (236,875 | ) | 29.34 | ||||||||||
Forfeited | (19,500 | ) | 37.84 | ||||||||||
Ending Balance | 2,498,520 | $ | 31.15 | ||||||||||
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 | ||||||||||||
Range of Exercise Prices | Remaining | Exercise | at March 31, 2015 | Remaining | Exercise | ||||||||
Contractual Life | Price | Contractual Life | Price | ||||||||||
$13.89-$42.16 | 2,498,520 | 4.71 | $ | 31.15 | 2,011,245 | 4.01 | $ | 29.4 | |||||
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 March 31, 2015, and changes during the three months ended March 31, 2015, are presented below: | ||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||
Number of Shares | Weighted-Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Beginning Balance | 1,727,741 | $ | 33.58 | ||||||||||
Granted | 552,753 | 39.37 | |||||||||||
Vested | (419,147 | ) | 35.83 | ||||||||||
Forfeited | (30,772 | ) | 37.49 | ||||||||||
Ending Balance | 1,830,575 | $ | 34.89 | ||||||||||
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 March 31, 2015, and changes during the three months ended March 31, 2015, is presented below: | ||||||||||||
Three Months Ended March 31, 2015 | |||||||||||||
Number | Weighted-Average | ||||||||||||
of PSUs | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Beginning Balance | 416,250 | $ | 49.53 | ||||||||||
Granted | 251,600 | 44.98 | |||||||||||
Forfeited | (15,850 | ) | 50.16 | ||||||||||
Ending Balance | 652,000 | $ | 47.76 | ||||||||||
EARNINGS_PER_SHARE_TABLE
EARNINGS PER SHARE (TABLE) | 3 Months Ended | ||||||
Mar. 31, 2015 | |||||||
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 | |||||||
March 31, | |||||||
2015 | 2014 | ||||||
Net earnings attributable to Owens Corning | $ | 18 | $ | 120 | |||
Weighted-average number of shares outstanding used for basic earnings per share | 117.8 | 117.8 | |||||
Non-vested restricted and performance shares | 0.3 | 0.4 | |||||
Options to purchase common stock | 0.4 | 0.5 | |||||
Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share | 118.5 | 118.7 | |||||
Earnings per common share attributable to Owens Corning common stockholders: | |||||||
Basic | $ | 0.15 | $ | 1.02 | |||
Diluted | $ | 0.15 | $ | 1.01 | |||
FAIR_VALUE_MEASUREMENT_TABLE
FAIR VALUE MEASUREMENT (TABLE) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||
Fair Value of Long Term Debt [Table Text Block] | Long-term debt | ||||||||||||
The following table shows the fair value of the Company’s long-term debt as calculated based on quoted market prices for the same or similar issues (Level 2 input), or on the current rates offered to the Company for debt of the same remaining maturities: | |||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||
6.50% senior notes, net of discount, due 2016 | 108 | % | 109 | % | |||||||||
9.00% senior notes, net of discount, due 2019 | 121 | % | 119 | % | |||||||||
4.20% senior notes, net of discount, due 2022 | 105 | % | 101 | % | |||||||||
4.20% senior notes, net of discount, due 2024 | 103 | % | 99 | % | |||||||||
7.00% senior notes, net of discount, due 2036 | 124 | % | 124 | % | |||||||||
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 as of March 31, 2015 (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: | |||||||||||||
Derivative assets | $ | 18 | $ | — | $ | 18 | $ | — | |||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 7 | $ | — | $ | 7 | $ | — | |||||
Contingent consideration | 6 | — | — | 6 | |||||||||
Total liabilities | $ | 13 | $ | — | $ | 7 | $ | 6 | |||||
The following table summarizes the fair values and levels within the fair value hierarchy in which the fair value measurements fall as of December 31, 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: | |||||||||||||
Derivative assets | $ | 1 | $ | — | $ | 1 | $ | — | |||||
Liabilities: | |||||||||||||
Derivative liabilities | $ | 8 | $ | — | $ | 8 | $ | — | |||||
Contingent consideration | 5 | — | — | 5 | |||||||||
Total liabilities | $ | 13 | $ | — | $ | 8 | $ | 5 | |||||
CHANGES_IN_ACCUMULATED_OTHER_C1
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Equity [Abstract] | ||||||||||||||||
Changes In Accumulated Other Comprehensive Income | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE DEFICIT | |||||||||||||||
The following table summarizes the changes in accumulated other comprehensive income (deficit) (“AOCI”) for the three months ended March 31, 2015 (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, 2014, net of tax | $ | (5 | ) | $ | (290 | ) | $ | (122 | ) | $ | (133 | ) | $ | (550 | ) | |
Amounts classified into AOCI, net of tax (a) | 1 | 2 | 2 | (50 | ) | (45 | ) | |||||||||
Amounts reclassified from AOCI, net of tax | — | 4 | — | — | 4 | |||||||||||
Change in AOCI, net of tax | 1 | 6 | 2 | (50 | ) | (41 | ) | |||||||||
Balance as of March 31, 2015, net of tax | $ | (4 | ) | $ | (284 | ) | $ | (120 | ) | $ | (183 | ) | $ | (591 | ) | |
(a) | $8 million of the amounts classified into AOCI, net of tax from Foreign Currency Translation Adjustment was due to the company's net investment hedge, as discussed in Note 4. | |||||||||||||||
The following table summarizes the changes in accumulated other comprehensive income (deficit) (“AOCI”) for the three months ended March 31, 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 | — | 4 | — | (16 | ) | (12 | ) | |||||||||
Amounts reclassified from AOCI, net of tax | — | (1 | ) | — | — | (1 | ) | |||||||||
Change in AOCI, net of tax | — | 3 | — | (16 | ) | (13 | ) | |||||||||
Balance as of March 31, 2014, net of tax | $ | — | $ | (181 | ) | $ | (115 | ) | $ | (14 | ) | $ | (310 | ) | ||
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 | ||||||||||||||||
March 31, | ||||||||||||||||
2015 | 2014 | |||||||||||||||
Defined Benefit Pension Plan Activity: | ||||||||||||||||
Cost of sales | $ | 4 | $ | (1 | ) | |||||||||||
Total reclassifications from AOCI | $ | 4 | $ | (1 | ) | |||||||||||
CONDENSED_CONSOLIDATING_FINANC
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (TABLE) | 3 Months Ended | |||||||||||||||||||||||||||||||
Mar. 31, 2015 | Mar. 31, 2014 | |||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Condensed Consolidating Statement of Earnings | OWENS CORNING AND SUBSIDIARIES | |||||||||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF EARNINGS | ||||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | FOR THE THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||||||||||||
Subsidiaries | Subsidiaries | (in millions) | ||||||||||||||||||||||||||||||
NET SALES | $ | — | $ | 841 | $ | 461 | $ | (95 | ) | $ | 1,207 | |||||||||||||||||||||
COST OF SALES | — | 721 | 372 | (95 | ) | 998 | ||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | ||||||||||||||||||||||||||||
Gross margin | — | 120 | 89 | — | 209 | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||
NET SALES | $ | — | $ | 911 | $ | 456 | $ | (89 | ) | $ | 1,278 | |||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||
Marketing and administrative expenses | 32 | 68 | 29 | — | 129 | COST OF SALES | — | 751 | 382 | (89 | ) | 1,044 | ||||||||||||||||||||
Science and technology expenses | — | 14 | 3 | — | 17 | Gross margin | — | 160 | 74 | — | 234 | |||||||||||||||||||||
Charges related to cost reduction actions | — | — | — | — | — | OPERATING EXPENSES | ||||||||||||||||||||||||||
Marketing and administrative expenses | 32 | 66 | 34 | — | 132 | |||||||||||||||||||||||||||
Other expenses (income), net | (8 | ) | 6 | 7 | — | 5 | ||||||||||||||||||||||||||
Science and technology expenses | — | 15 | 4 | — | 19 | |||||||||||||||||||||||||||
Total operating expenses | 24 | 88 | 39 | — | 151 | |||||||||||||||||||||||||||
Charges related to cost reduction actions | — | 1 | 11 | — | 12 | |||||||||||||||||||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (24 | ) | 32 | 50 | — | 58 | ||||||||||||||||||||||||||
Other expenses (income), net | (10 | ) | 2 | (29 | ) | — | (37 | ) | ||||||||||||||||||||||||
Interest expense, net | 24 | 1 | 1 | — | 26 | |||||||||||||||||||||||||||
Total operating expenses | 22 | 84 | 20 | — | 126 | |||||||||||||||||||||||||||
EARNINGS BEFORE TAXES | (48 | ) | 31 | 49 | — | 32 | ||||||||||||||||||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (22 | ) | 76 | 54 | — | 108 | ||||||||||||||||||||||||||
Less: Income tax expense (benefit) | (15 | ) | 9 | 19 | — | 13 | ||||||||||||||||||||||||||
Interest expense, net | 26 | 1 | — | — | 27 | |||||||||||||||||||||||||||
Equity in net earnings of subsidiaries | 51 | 29 | — | (80 | ) | — | ||||||||||||||||||||||||||
EARNINGS BEFORE TAXES | (48 | ) | 75 | 54 | — | 81 | ||||||||||||||||||||||||||
NET EARNINGS | 18 | 51 | 30 | (80 | ) | 19 | ||||||||||||||||||||||||||
Less: Income tax expense (benefit) | (18 | ) | (13 | ) | (8 | ) | — | (39 | ) | |||||||||||||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | |||||||||||||||||||||||||||
Equity in net earnings of subsidiaries | 150 | 62 | — | (212 | ) | — | ||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 18 | $ | 51 | $ | 29 | $ | (80 | ) | $ | 18 | |||||||||||||||||||||
NET EARNINGS | 120 | 150 | 62 | (212 | ) | 120 | ||||||||||||||||||||||||||
Less: Net earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||||||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 120 | $ | 150 | $ | 62 | $ | (212 | ) | $ | 120 | |||||||||||||||||||||
Condensed Consolidating Statement Of Comprehensive Earnings | OWENS CORNING AND SUBSIDIARIES | OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS (LOSS) | CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS (LOSS) | |||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | FOR THE THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||
Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | Parent | Guarantor | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||||||||
Subsidiaries | Subsidiaries | Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||
NET EARNINGS | $ | 18 | $ | 51 | $ | 30 | $ | (80 | ) | $ | 19 | NET EARNINGS | $ | 120 | $ | 150 | $ | 62 | $ | (212 | ) | $ | 120 | |||||||||
Currency translation adjustment (net of tax) | (50 | ) | — | — | — | (50 | ) | Currency translation adjustment (net of tax) | (16 | ) | — | — | — | (16 | ) | |||||||||||||||||
Pension and other postretirement adjustment (net of tax) | 8 | — | — | — | 8 | Pension and other postretirement adjustment (net of tax) | 3 | — | — | — | 3 | |||||||||||||||||||||
Deferred gain on hedging (net of tax) | 1 | — | — | — | 1 | Deferred gain on hedging (net of tax) | — | — | — | — | — | |||||||||||||||||||||
COMPREHENSIVE EARNINGS (LOSS) | (23 | ) | 51 | 30 | (80 | ) | (22 | ) | COMPREHENSIVE EARNINGS (LOSS) | 107 | 150 | 62 | (212 | ) | 107 | |||||||||||||||||
Less: Comprehensive earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | Less: Comprehensive earnings attributable to noncontrolling interests | — | — | — | — | — | |||||||||||||||||||||
COMPREHENSIVE EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | $ | (23 | ) | $ | 51 | $ | 29 | $ | (80 | ) | $ | (23 | ) | COMPREHENSIVE EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | $ | 107 | $ | 150 | $ | 62 | $ | (212 | ) | $ | 107 | |||||||
Condensed Consolidating Balance Sheet | OWENS CORNING AND SUBSIDIARIES | OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||||||||||||
AS OF MARCH 31, 2015 | AS OF DECEMBER 31, 2014 | |||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||
ASSETS | Parent | Guarantor | Non- | Eliminations | Consolidated | ASSETS | Parent | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||||
Subsidiaries | Guarantor | Subsidiaries | Guarantor | |||||||||||||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||
CURRENT ASSETS | CURRENT ASSETS | |||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 4 | $ | 73 | $ | — | $ | 77 | Cash and cash equivalents | $ | — | $ | 1 | $ | 66 | $ | — | $ | 67 | |||||||||||
Receivables, less allowances | — | — | 844 | — | 844 | Receivables, less allowances | — | — | 674 | — | 674 | |||||||||||||||||||||
Due from affiliates | — | 2,666 | 76 | (2,742 | ) | — | Due from affiliates | — | 2,858 | — | (2,858 | ) | — | |||||||||||||||||||
Inventories | — | 540 | 285 | — | 825 | Inventories | — | 527 | 290 | — | 817 | |||||||||||||||||||||
Assets held for sale | — | — | 14 | — | 14 | Assets held for sale | — | — | 16 | — | 16 | |||||||||||||||||||||
Other current assets | 8 | 138 | 89 | — | 235 | Other current assets | 7 | 132 | 94 | — | 233 | |||||||||||||||||||||
Total current assets | 8 | 3,348 | 1,381 | (2,742 | ) | 1,995 | Total current assets | 7 | 3,518 | 1,140 | (2,858 | ) | 1,807 | |||||||||||||||||||
Investment in subsidiaries | 7,502 | 2,457 | 559 | (10,518 | ) | — | Investment in subsidiaries | 7,504 | 2,590 | 558 | (10,652 | ) | — | |||||||||||||||||||
Due from affiliates | — | — | 826 | (826 | ) | — | Due from affiliates | — | — | 881 | (881 | ) | — | |||||||||||||||||||
Property, plant and equipment, net | 359 | 1,404 | 1,088 | — | 2,851 | Property, plant and equipment, net | 359 | 1,397 | 1,143 | — | 2,899 | |||||||||||||||||||||
Goodwill | — | 1,127 | 41 | — | 1,168 | Goodwill | — | 1,127 | 41 | — | 1,168 | |||||||||||||||||||||
Intangible assets | — | 985 | 231 | (203 | ) | 1,013 | Intangible assets | — | 989 | 238 | (210 | ) | 1,017 | |||||||||||||||||||
Deferred income taxes | 31 | 380 | 23 | — | 434 | Deferred income taxes | 35 | 380 | 29 | — | 444 | |||||||||||||||||||||
Other non-current assets | 42 | 66 | 127 | — | 235 | Other non-current assets | 30 | 62 | 128 | — | 220 | |||||||||||||||||||||
TOTAL ASSETS | $ | 7,942 | $ | 9,767 | $ | 4,276 | $ | (14,289 | ) | $ | 7,696 | TOTAL ASSETS | $ | 7,935 | $ | 10,063 | $ | 4,158 | $ | (14,601 | ) | $ | 7,555 | |||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||||||||||||||||
CURRENT LIABILITIES | CURRENT LIABILITIES | |||||||||||||||||||||||||||||||
Accounts payable and accrued liabilities | $ | 57 | $ | 454 | $ | 384 | $ | — | $ | 895 | Accounts payable and accrued liabilities | $ | 47 | $ | 667 | $ | 235 | $ | — | $ | 949 | |||||||||||
Due to affiliates | 1,816 | — | 926 | (2,742 | ) | — | Due to affiliates | 1,913 | — | 945 | (2,858 | ) | — | |||||||||||||||||||
Short-term debt | — | — | 14 | — | 14 | Short-term debt | — | 25 | 6 | — | 31 | |||||||||||||||||||||
Long-term debt – current portion | — | 1 | 2 | — | 3 | Long-term debt – current portion | — | 1 | 2 | — | 3 | |||||||||||||||||||||
Total current liabilities | 1,873 | 455 | 1,326 | (2,742 | ) | 912 | Total current liabilities | 1,960 | 693 | 1,188 | (2,858 | ) | 983 | |||||||||||||||||||
Long-term debt, net of current | 2,004 | 15 | 255 | — | 2,274 | Long-term debt, net of current portion | 1,851 | 15 | 125 | — | 1,991 | |||||||||||||||||||||
Due to affiliates | — | 826 | — | (826 | ) | — | Due to affiliates | — | 881 | — | (881 | ) | — | |||||||||||||||||||
Pension plan liability | 302 | — | 122 | — | 424 | Pension plan liability | 310 | — | 137 | — | 447 | |||||||||||||||||||||
Other employee benefits liability | — | 235 | 14 | — | 249 | Other employee benefits liability | — | 237 | 15 | — | 252 | |||||||||||||||||||||
Deferred income taxes | — | — | 22 | — | 22 | Deferred income taxes | — | — | 22 | — | 22 | |||||||||||||||||||||
Other liabilities | 119 | 175 | 41 | (203 | ) | 132 | Other liabilities | 122 | 175 | 43 | (210 | ) | 130 | |||||||||||||||||||
OWENS CORNING STOCKHOLDERS’ EQUITY | OWENS CORNING STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||||||||||
Preferred stock | — | — | — | — | — | Preferred stock | — | — | — | — | — | |||||||||||||||||||||
Common stock | 1 | — | — | — | 1 | Common stock | 1 | — | — | — | 1 | |||||||||||||||||||||
Additional paid in capital | 3,946 | 6,433 | 1,763 | (8,196 | ) | 3,946 | Additional paid in capital | 3,954 | 6,483 | 1,927 | (8,410 | ) | 3,954 | |||||||||||||||||||
Accumulated earnings | 803 | 1,628 | 694 | (2,322 | ) | 803 | Accumulated earnings | 805 | 1,579 | 663 | (2,242 | ) | 805 | |||||||||||||||||||
Accumulated other comprehensive deficit | (591 | ) | — | — | — | (591 | ) | Accumulated other comprehensive deficit | (550 | ) | — | — | — | (550 | ) | |||||||||||||||||
Cost of common stock in treasury | (515 | ) | — | — | — | (515 | ) | Cost of common stock in treasury | (518 | ) | — | — | — | (518 | ) | |||||||||||||||||
Total Owens Corning stockholders’ equity | 3,644 | 8,061 | 2,457 | (10,518 | ) | 3,644 | Total Owens Corning stockholders’ equity | 3,692 | 8,062 | 2,590 | (10,652 | ) | 3,692 | |||||||||||||||||||
Noncontrolling interests | — | — | 39 | — | 39 | Noncontrolling interests | — | — | 38 | — | 38 | |||||||||||||||||||||
Total equity | 3,644 | 8,061 | 2,496 | (10,518 | ) | 3,683 | Total equity | 3,692 | 8,062 | 2,628 | (10,652 | ) | 3,730 | |||||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 7,942 | $ | 9,767 | $ | 4,276 | $ | (14,289 | ) | $ | 7,696 | TOTAL LIABILITIES AND EQUITY | $ | 7,935 | $ | 10,063 | $ | 4,158 | $ | (14,601 | ) | $ | 7,555 | |||||||||
Condensed Consolidating Statement of Cash Flows | OWENS CORNING AND SUBSIDIARIES | OWENS CORNING AND SUBSIDIARIES | ||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||||||||||||
FOR THE THREE MONTHS ENDED MARCH 31, 2015 | FOR THE THREE MONTHS ENDED MARCH 31, 2014 | |||||||||||||||||||||||||||||||
(in millions) | (in millions) | |||||||||||||||||||||||||||||||
Parent | Guarantor | Non- | Eliminations | Consolidated | Parent | Guarantor | Non- | Eliminations | Consolidated | |||||||||||||||||||||||
Subsidiaries | Guarantor | Subsidiaries | Guarantor | |||||||||||||||||||||||||||||
Subsidiaries | Subsidiaries | |||||||||||||||||||||||||||||||
NET CASH FLOW USED FOR OPERATING ACTIVITIES | $ | — | $ | (157 | ) | $ | 8 | $ | — | $ | (149 | ) | NET CASH FLOW USED FOR OPERATING ACTIVITIES | $ | — | $ | (222 | ) | $ | (50 | ) | $ | — | $ | (272 | ) | ||||||
NET CASH FLOW USED FOR INVESTING ACTIVITIES | NET CASH FLOW USED FOR INVESTING ACTIVITIES | |||||||||||||||||||||||||||||||
Additions to plant and equipment (including alloy) | (3 | ) | (43 | ) | (10 | ) | — | (56 | ) | Additions to plant and equipment (including alloy) | (3 | ) | (26 | ) | (22 | ) | — | (51 | ) | |||||||||||||
Proceeds from the sale of assets (including alloy) or affiliates | — | — | — | — | — | Proceeds from the sale of assets (including alloy) or affiliates | — | — | (3 | ) | — | (3 | ) | |||||||||||||||||||
Net cash flow used for investing activities | (3 | ) | (43 | ) | (10 | ) | — | (56 | ) | Net cash flow used for investing activities | (3 | ) | (26 | ) | (25 | ) | — | (54 | ) | |||||||||||||
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | |||||||||||||||||||||||||||||||
Proceeds from senior revolving credit and receivables securitization facilities | 398 | — | 131 | — | 529 | Proceeds from senior revolving credit and receivables securitization facilities | 433 | — | 51 | — | 484 | |||||||||||||||||||||
Payments on senior revolving credit and receivables securitization facilities | (247 | ) | — | — | — | (247 | ) | Payments on senior revolving credit and receivables securitization facilities | (149 | ) | — | — | — | (149 | ) | |||||||||||||||||
Net increase (decrease) in short-term debt | — | (25 | ) | 8 | — | (17 | ) | Net increase (decrease) in short-term debt | — | 1 | 23 | — | 24 | |||||||||||||||||||
Cash dividends paid | (39 | ) | — | — | — | (39 | ) | Cash dividends paid | — | — | — | — | — | |||||||||||||||||||
Purchases of treasury stock | (19 | ) | — | — | — | (19 | ) | Purchase of treasury stock | (29 | ) | — | — | — | (29 | ) | |||||||||||||||||
Other intercompany loans | (97 | ) | 228 | (131 | ) | — | — | Other intercompany loans | (257 | ) | 247 | 10 | — | — | ||||||||||||||||||
Other | 7 | — | — | — | 7 | Other | 5 | — | — | — | 5 | |||||||||||||||||||||
Net cash flow provided by financing activities | 3 | 203 | 8 | — | 214 | Net cash flow provided by financing activities | 3 | 248 | 84 | — | 335 | |||||||||||||||||||||
Effect of exchange rate changes on cash | — | — | 1 | — | 1 | Effect of exchange rate changes on cash | — | — | (1 | ) | — | (1 | ) | |||||||||||||||||||
Net increase in cash and cash equivalents | — | 3 | 7 | — | 10 | Net increase in cash and cash equivalents | — | — | 8 | — | 8 | |||||||||||||||||||||
Cash and cash equivalents at beginning of period | — | 1 | 66 | — | 67 | Cash and cash equivalents at beginning of period | — | 3 | 54 | — | 57 | |||||||||||||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 4 | $ | 73 | $ | — | $ | 77 | CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 3 | $ | 62 | $ | — | $ | 65 | |||||||||||
SEGMENT_INFORMATION_DETAIL
SEGMENT INFORMATION (DETAIL) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
segment | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
NET SALES | $1,207 | $1,278 |
Income (loss) from Reportable Segments | 87 | 108 |
Restructuring Charges and Related Items | 0 | -12 |
Net loss related to Hurricane Sandy | 0 | -2 |
General corporate expense and other | -27 | -31 |
EBIT | 58 | 108 |
Charges related to cost reduction actions | 0 | 12 |
Other costs related to restructuring | -2 | |
Number of Reportable Segments | 3 | |
United States | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
Revenues | 816 | 889 |
Europe | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
Revenues | 129 | 149 |
Asia Pacific | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
Revenues | 140 | 137 |
Other Geographical | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
Revenues | 122 | 103 |
Composites | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
Revenues | 478 | 477 |
EBIT | 60 | 27 |
Total Segments | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
Revenues | 1,250 | 1,329 |
Corporate Eliminations | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
Revenues | -43 | -51 |
Insulation | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
Revenues | 379 | 355 |
EBIT | 7 | 1 |
Roofing | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
Revenues | 393 | 497 |
EBIT | 20 | 80 |
Hangzhou | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
Restructuring Charges and Related Items | $0 | $45 |
INVENTORIES_DETAIL
INVENTORIES (DETAIL) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Finished goods | $580 | $568 |
Materials and supplies | 245 | 249 |
Total inventories | $825 | $817 |
DERIVATIVE_FINANCIAL_INSTRUMEN2
DERIVATIVE FINANCIAL INSTRUMENTS BALANCE SHEET (DETAIL) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Loss Recognized in OCI, Effective Portion | $7 | |
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 | |
Twelve Months [Domain] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | |
Beyond Twelve Months [Domain] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | |
Natural Gas Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative, Remaining Maturity | 15 months | |
Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Net | 5 | 0 |
Electricity and Foreign Exchange Contracts [Member] | Twelve Months [Domain] | ||
Derivatives, Fair Value [Line Items] | ||
Percent of exposures hedged | 0 | |
Electricity and Foreign Exchange Contracts [Member] | Beyond Twelve Months [Domain] | ||
Derivatives, Fair Value [Line Items] | ||
Percent of exposures hedged | 0 | |
Other Current Assets | Designated as Hedging Instrument | Net Investment Hedging [Member] | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Net | 3 | 0 |
Other Current Assets | Nondesignated | Electricity and Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Net | 1 | 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 | 7 | 8 |
Other Comprehensive Income | Designated as Hedging Instrument | Net Investment Hedging [Member] | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Net | 12 | |
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 | 6 | 9 |
Accounts Payable and Accrued Liabilities | Nondesignated | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Net | 1 | 2 |
Other Noncurrent Assets | Designated as Hedging Instrument | Net Investment Hedging [Member] | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Net | 9 | |
Other Liabilities [Member] | Designated as Hedging Instrument | Cash Flow Hedging | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Net | $0 | ($3) |
DERIVATIVE_FINANCIAL_INSTRUMEN3
DERIVATIVE FINANCIAL INSTRUMENTS INCOME STATEMENT (DETAIL) (USD $) | 3 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
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) | $3 | ($1) | ||
Other Expense | Nondesignated | Foreign Exchange Contract | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of loss recognized in earnings (a) | $1 | [1] | ($1) | [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 expenses (income), net. |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (DETAIL) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Balance as of December 31, 2014 | $1,168,000,000 | |
Balance as of March 31, 2015 | 1,168,000,000 | |
Intangible Assets [Line Items] | ||
Gross carrying amount | 1,192,000,000 | 1,190,000,000 |
Accumulated amortization | -179,000,000 | -173,000,000 |
Intangible assets | 1,013,000,000 | 1,017,000,000 |
Intangible assets amortization expense remainder of year | 22,000,000 | |
Intangible assets amortization expense year two | 22,000,000 | |
Intangible assets amortization expense year three | 22,000,000 | |
Intangible assets amortization expense year four | 22,000,000 | |
Intangible assets amortization expense year five | 22,000,000 | |
Finite-lived Intangible Assets Acquired | 2,000,000 | |
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 | 172,000,000 | 172,000,000 |
Accumulated amortization | -75,000,000 | -72,000,000 |
Net carrying amount | 97,000,000 | 100,000,000 |
Finite-lived Intangible Assets Acquired | 0 | |
Technology | ||
Intangible Assets [Line Items] | ||
Weighted average useful life | 20 years 0 months 0 days | 20 years 0 months 0 days |
Gross carrying amount | 193,000,000 | 193,000,000 |
Accumulated amortization | -85,000,000 | -83,000,000 |
Net carrying amount | 108,000,000 | 110,000,000 |
Finite-lived Intangible Assets Acquired | 0 | |
Franchise and Other Agreements | ||
Intangible Assets [Line Items] | ||
Weighted average useful life | 11 years 0 months 0 days | 12 years 0 months 0 days |
Gross carrying amount | 41,000,000 | 39,000,000 |
Accumulated amortization | -19,000,000 | -18,000,000 |
Net carrying amount | 22,000,000 | 21,000,000 |
Finite-lived Intangible Assets Acquired | 2,000,000 | |
Trademarks | ||
Intangible Assets [Line Items] | ||
Gross carrying amount | 786,000,000 | 786,000,000 |
Indefinite-lived intangible assets | 786,000,000 | 786,000,000 |
Finite-lived Intangible Assets Acquired | $0 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (DETAIL) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ||
Property Plant And Equipment Gross | $4,603 | $4,623 |
Accumulated depreciation | -1,752 | -1,724 |
Property, plant and equipment, net | 2,851 | 2,899 |
Precious Metals Percentage | 0.16 | 0.15 |
Precious Metals Depletion Percentage | 0.00% | |
precious metal percent of deprecation expense | 0.03 | |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property Plant And Equipment Gross | 191 | 196 |
Buildings and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property Plant And Equipment Gross | 785 | 789 |
Machinery And Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property Plant And Equipment Gross | 3,389 | 3,405 |
Construction In Progress | ||
Property Plant And Equipment [Line Items] | ||
Property Plant And Equipment Gross | $238 | $233 |
DIVESTITURES_DIVESTITURES_Deta
DIVESTITURES DIVESTITURES (Details) (Sale of Hangzhou Facility [Member], USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Sep. 13, 2013 |
Sale of Hangzhou Facility [Member] | ||
Business Divestitures [Line Items] | ||
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property | $45 | |
Divestiture, Amount of Future Consideration Receivable | $14 | $70 |
WARRANTIES_DETAIL
WARRANTIES (DETAIL) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Movement In Standard And Extended Product Warranty Increase Decrease Roll Forward | |
Product Warranty Accrual, Beginning Balance | $40 |
Amounts accrued for current year | 5 |
Settlements of warranty claims | -3 |
Product Warranty Accrual, Ending Balance | $42 |
COST_REDUCTION_ACTIONS_DETAIL
COST REDUCTION ACTIONS (DETAIL) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 |
Restructuring Reserve Roll Forward | ||||
Restructuring Reserve, Beginning Balance | $34 | |||
Charges related to cost reduction actions | 0 | 12 | ||
Restructuring Reserve, Ending Balance | 30 | |||
Cumulative charges incurred | 39 | |||
Other costs related to restructuring | -2 | |||
Restructuring Reserve | 30 | |||
Payments for Restructuring | 3 | |||
Restructuring Reserve, Translation and Other Adjustment | -1 | |||
Employee Severance | ||||
Restructuring Reserve Roll Forward | ||||
Restructuring Reserve, Beginning Balance | 31 | |||
Restructuring Reserve, Ending Balance | 27 | |||
Cumulative charges incurred | 36 | |||
Restructuring Reserve | 27 | |||
Payments for Restructuring | 3 | |||
Restructuring Reserve, Translation and Other Adjustment | -1 | |||
Contract Termination | ||||
Restructuring Reserve Roll Forward | ||||
Restructuring Reserve, Beginning Balance | 3 | |||
Restructuring Reserve, Ending Balance | 3 | |||
Cumulative charges incurred | 3 | |||
Restructuring Reserve | 3 | |||
Payments for Restructuring | 0 | |||
Restructuring Reserve, Translation and Other Adjustment | 0 | |||
Cost Reduction Actions 2014 | Composite | ||||
Restructuring Reserve Roll Forward | ||||
Severance Costs | 16 | |||
Loss on contract termination for default | 3 | |||
Other costs related to restructuring | 2 | 1 | ||
Cost Reduction Actions 2014 | Building Materials | ||||
Restructuring Reserve Roll Forward | ||||
Severance Costs | 9 | |||
Cost Reduction Actions 2014 | Termination of Contract with Utility Service Provider [Member] | ||||
Restructuring Reserve Roll Forward | ||||
Cumulative charges incurred | 14 | |||
Severance Costs | 11 | |||
Loss on contract termination for default | $3 |
DEBT_DETAIL
DEBT (DETAIL) (USD $) | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2013 | Oct. 17, 2012 | Dec. 31, 2011 | Nov. 12, 2014 |
Long-Term Debt [Line Items] | |||||||||
Long Term Debt | $1,994 | $2,277 | $1,994 | ||||||
Fair Value Adjustment to Debt | 8 | 9 | 8 | ||||||
Long Term Debt Current | 3 | 3 | 3 | ||||||
Long Term Debt Noncurrent | 1,991 | 2,274 | 1,991 | ||||||
Interest Rate Swap Agreement, Principal Amount | 100 | ||||||||
Line Of Credit Facility Maximum Borrowing Capacity | 800 | ||||||||
Short-term debt | 31 | 14 | 31 | ||||||
Short-term Debt, Weighted Average Interest Rate | 0.00% | 0.00% | 0.00% | ||||||
letters of credit sublimit | 100 | ||||||||
Senior Notes Due 2016 | |||||||||
Long-Term Debt [Line Items] | |||||||||
Long Term Debt | 158 | 158 | 158 | ||||||
Debt Instrument Face Amount | 650 | ||||||||
Repayments of Debt | 242 | 250 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | ||||||||
Senior Notes Due 2019 | |||||||||
Long-Term Debt [Line Items] | |||||||||
Long Term Debt | 143 | 143 | 143 | ||||||
Debt Instrument Face Amount | 350 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 9.00% | 9.00% | 9.00% | ||||||
Repayments of Debt | 105 | 100 | |||||||
Senior Notes Due 2022 | |||||||||
Long-Term Debt [Line Items] | |||||||||
Long Term Debt | 600 | 600 | 600 | ||||||
Debt Instrument Face Amount | 600 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 0.00% | ||||||||
Senior Notes Due 2036 | |||||||||
Long-Term Debt [Line Items] | |||||||||
Long Term Debt | 540 | 540 | 540 | ||||||
Debt Instrument Face Amount | 540 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.00% | 7.00% | 7.00% | ||||||
Letter Of Credit Under Receivables Purchase Agreement | |||||||||
Long-Term Debt [Line Items] | |||||||||
Long Term Debt | 106 | 237 | 106 | ||||||
Line Of Credit Facility Amount Outstanding | 237 | ||||||||
Letters of Credit Outstanding, Amount | 13 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | 250 | ||||||||
Line of Credit Facility, Current Borrowing Capacity, In Fourth Quarter | 200 | ||||||||
Senior Revolving Credit Facility B | |||||||||
Long-Term Debt [Line Items] | |||||||||
Long Term Debt | 0 | 151 | 0 | ||||||
Line Of Credit Facility Amount Outstanding | 151 | ||||||||
Letters of Credit Outstanding, Amount | 9 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | 640 | ||||||||
Capital Lease Obligations | |||||||||
Long-Term Debt [Line Items] | |||||||||
Long Term Debt | 47 | 46 | 47 | ||||||
Senior Notes Due 2024 [Member] | |||||||||
Long-Term Debt [Line Items] | |||||||||
Long Term Debt | 392 | 393 | 392 | ||||||
Debt Instrument Face Amount | 400 | ||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 0.00% | ||||||||
Debt Issuance Cost | $4 |
PENSION_PLANS_AND_OTHER_POSTRE1
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (DETAIL) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | $3 | $3 |
Interest cost | 16 | 18 |
Expected return on plan assets | -21 | -21 |
Amortization of actuarial loss | 5 | 3 |
Net periodic pension cost | 3 | 3 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Defined Benefit Plan, Contributions by Employer | 14 | |
United States Pension Plans Of US Entity Defined Benefit | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | 2 | 2 |
Interest cost | 11 | 12 |
Expected return on plan assets | -15 | -14 |
Amortization of actuarial loss | 4 | 2 |
Net periodic pension cost | 2 | 2 |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | ||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 48 | |
Foreign Pension Plans Defined Benefit | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | 1 | 1 |
Interest cost | 5 | 6 |
Expected return on plan assets | -6 | -7 |
Amortization of actuarial loss | 1 | 1 |
Net periodic pension cost | 1 | 1 |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | ||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 14 | |
Other Postretirement Benefit Plans, Defined Benefit | ||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||
Service cost | 1 | 1 |
Interest cost | 2 | 3 |
Amortization of actuarial loss | 0 | -1 |
Amortization of prior service cost | -1 | -1 |
Net periodic pension cost | $2 | $2 |
CONTINGENT_LIABILITIES_AND_OTH1
CONTINGENT LIABILITIES AND OTHER MATTERS (DETAIL) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2015 |
Number | |
Unusual or Infrequent Item [Line Items] | |
Environmental Liability Sites | 21 |
Environmental Exit Costs, Reasonably Possible Additional Losses, Best Estimate | $3 |
STOCK_COMPENSATION_DETAIL
STOCK COMPENSATION (DETAIL) (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | 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 | 1,800,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | ||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Risk Free Interest Rate | 1.10% | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value | $36 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 85.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 29.20% | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Additional Disclosures Abstract | |||
Number of shares granted | 251,600 | ||
Number of shares forfeited | -15,850 | ||
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Term | 2 years 10 months 25 days | ||
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 | $44.98 | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | |||
Share-based compensation number of options beginning balance | 2,754,895 | ||
Exercises in period number of options | -236,875 | ||
Forfeitures in period number of options | -19,500 | ||
Share-based compensation number of options ending balance | 2,498,520 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning Balance | $31.04 | ||
Exercises in period weighted average exercise price | $29.34 | ||
Forfeitures n period weighted average exercise price | $37.84 | ||
Ending Balance | $31.15 | ||
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 | 2,498,520 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term | 4 years 8 months 17 days | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Exercise Price, Beginning Balance | $31.15 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Exercisable Options | 2,011,245 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Remaining Contractual Term | 4 years 0 months 5 days | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Exercisable Options, Weighted Average Exercise Price | $29.40 | ||
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 | ||
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 | ||
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 | ||
Allocated Share Based Compensation Expense | 1 | 1 | |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | 7 | ||
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition | 2 years 4 months 20 days | ||
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Intrinsic Value | 31 | ||
Employee emergence equity program expense | 0.5 | 0.4 | |
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 | 3 years 1 month 10 days | ||
Allocated Share Based Compensation Expense | 4 | 4 | |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | 39 | ||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Vested In Period Total Fair Value | 15 | 13 | |
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 | 1,727,741 | ||
Number of shares granted | 552,753 | ||
Number of shares vested | -419,147 | ||
Number of shares forfeited | -30,772 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 1,830,575 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning Balance | $33.58 | ||
Weighted average fair value of grants | $39.37 | ||
Weighted average fair value of vested | $35.83 | ||
Weighted average fair value of forfeited | $37.49 | ||
Ending Balance | $34.89 | ||
Performance Stock Units (PSUs) | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Allocated Share Based Compensation Expense | 2 | 2 | |
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized | 16 | ||
Employee Service Share Based Compensation Nonvested Awards Total Compensation Cost Not Yet Recognized Period For Recognition | 2 years 2 months 13 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 | 416,250 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Ending Balance | 652,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning Balance | $49.53 | ||
Weighted average fair value of forfeited | $50.16 | ||
Ending Balance | $47.76 | ||
Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Allocated Share Based Compensation Expense | $1 | ||
Internal Based Performance Metric [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance Stock Payout Minimum | 0 | ||
Performance Stock Payout Range Maximum | 3 | ||
External Based Performance Metric [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Performance Stock Payout Minimum | 0 | ||
Performance Stock Payout Range Maximum | 2 |
EARNINGS_PER_SHARE_DETAIL
EARNINGS PER SHARE (DETAIL) (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Apr. 25, 2012 |
Equity Class Of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 7,400,000 | ||
Net earnings attributable to Owens Corning | $18 | $120 | |
Weighted-average number of shares outstanding used for basic earnings per share | 117,800,000 | 117,800,000 | |
Non-vested restricted and performance shares | 300,000 | 400,000 | |
Options to purchase common stock | 400,000 | 500,000 | |
Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share | 118,500,000 | 118,700,000 | |
Basic (in dollars per share) | $0.15 | $1.02 | |
Diluted (in dollars per share) | $0.15 | $1.01 | |
Stock Repurchased During Period, Shares | 300,000 | ||
Payments for Repurchase of Equity | $13 | ||
Repurchase Program 2012 | |||
Equity Class Of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 10,000,000 | ||
Restricted Stock | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount | 100,000 | 500,000 | |
Equity Option | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount | 600,000 | 700,000 | |
Performance Shares [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount | 100,000 |
FAIR_VALUE_MEASUREMENT_DETAIL
FAIR VALUE MEASUREMENT (DETAIL) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Assets: | ||
Derivative assets | $18,000,000 | $1,000,000 |
Liabilities: | ||
Derivative liabilities | 7,000,000 | 8,000,000 |
Total liabilities | 13,000,000 | 13,000,000 |
Contingent consideration change in fair value | 1,000,000 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Notes Payable, Fair Value Disclosure, Par Value | 100.00% | 100.00% |
Senior Notes Due 2036 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 7.00% | 7.00% |
Senior Notes Due 2019 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 9.00% | 9.00% |
Fair Value Inputs Level 1 | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value Inputs Level 2 | ||
Assets: | ||
Derivative assets | 18,000,000 | 1,000,000 |
Liabilities: | ||
Derivative liabilities | 7,000,000 | 8,000,000 |
Total liabilities | 7,000,000 | 8,000,000 |
Fair Value Inputs Level 3 | ||
Assets: | ||
Derivative assets | 0 | 0 |
Liabilities: | ||
Derivative liabilities | 0 | 0 |
Contingent consideration | 6,000,000 | 5,000,000 |
Total liabilities | 6,000,000 | 5,000,000 |
Maximum Payout | ||
Liabilities: | ||
Contingent consideration | 7,000,000 | |
Minimum Payout | ||
Liabilities: | ||
Contingent consideration | $4,000,000 |
INCOME_TAXES_DETAIL
INCOME TAXES (DETAIL) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Current Income Tax Expense (Benefit) | $13 | |
Effective Income Tax Rate Continuing Operations | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 0.00% | 0.00% |
Valuation Allowance, Amount | 78 | |
Current Federal Tax Expense | ($39) |
CHANGES_IN_ACCUMULATED_OTHER_C2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (DETAIL) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Type of Expense From AOCI to the Statement of Earnings [Line Items] | ||
Expense on the Statement of Earnings | $4 | ($1) |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Cash flow hedge activity beginning balance | -5 | 0 |
Defined benefit pension plan activity beginning balance | -290 | -184 |
OCI valuation allowance activity beginning balance | -122 | -115 |
Foreign currency translation adjustment beginning balance | -133 | 2 |
Total AOCI beginning balance | -550 | -297 |
Unrealized gain (loss) on derivatives arising during period (net of tax) | 1 | 0 |
Reclassification adjustment from AOCI on derivatives (net of tax) | 0 | 0 |
Deferred loss on hedging transactions (net of tax) | 1 | 0 |
Translation impact on non US plans (net of tax) | 2 | 4 |
Reclassification adjustment from AOCI postretirement benefit plans tax | 4 | -1 |
Pension and other postretirement adjustment (net of tax) | 8 | 3 |
Change in valuation amount deferred tax asset | 2 | 0 |
Reclassification AOCI valuation | 0 | 0 |
AOCI valuation (net of tax) | 2 | 0 |
Foreign currency transaction and translation gain (loss) arising during period (net of tax) | -50 | -16 |
Other comprehensive income translation impact | 0 | 0 |
Foreign currency transaction and translation adjustment (net of tax) | -50 | -16 |
Amounts classified into AOCI | -45 | -12 |
Amounts reclassified rrom AOCI | 4 | -1 |
Change in AOCI | -41 | -13 |
Cash flow hedge activity ending balance | -4 | 0 |
Defined benefit pension plan activity ending balance | -284 | -181 |
OCI valuation allowance activity ending balance | -120 | -115 |
Foreign currency translation adjustment ending balance | -183 | -14 |
Total AOCI ending balance | -591 | -310 |
Defined Benefit pension plan activity less valuation allowance ending balance | -6 | |
Net Investment Hedge Amount In Currency Translation Adjustment | 8 | |
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 | $4 | ($1) |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENT OF EARNINGS (DETAIL) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Statements Captions [Line Items] | ||
NET SALES | $1,207 | $1,278 |
COST OF SALES | 998 | 1,044 |
Gross margin | 209 | 234 |
OPERATING EXPENSES | ||
Marketing and administrative expenses | 129 | 132 |
Science and technology expenses | 17 | 19 |
Charges related to cost reduction actions | 0 | 12 |
Other (income) expenses, net | 5 | -37 |
Total operating expenses | 151 | 126 |
EARNINGS BEFORE INTEREST AND TAXES | 58 | 108 |
Interest expense, net | 26 | 27 |
EARNINGS BEFORE TAXES | 32 | 81 |
Less: Income tax expense (benefit) | 13 | -39 |
Equity in net earnings of subsidiaries | 0 | 0 |
NET EARNINGS | 19 | 120 |
Less: Net earnings attributable to noncontrolling interests | 1 | 0 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | 18 | 120 |
Parent Company | ||
Condensed Financial Statements Captions [Line Items] | ||
NET SALES | 0 | 0 |
COST OF SALES | 0 | 0 |
Gross margin | 0 | 0 |
OPERATING EXPENSES | ||
Marketing and administrative expenses | 32 | 32 |
Science and technology expenses | 0 | 0 |
Charges related to cost reduction actions | 0 | 0 |
Other (income) expenses, net | -8 | -10 |
Total operating expenses | 24 | 22 |
EARNINGS BEFORE INTEREST AND TAXES | -24 | -22 |
Interest expense, net | 24 | 26 |
EARNINGS BEFORE TAXES | -48 | -48 |
Less: Income tax expense (benefit) | -15 | -18 |
Equity in net earnings of subsidiaries | 51 | 150 |
NET EARNINGS | 18 | 120 |
Less: Net earnings attributable to noncontrolling interests | 0 | 0 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | 18 | 120 |
Guarantor Subsidiaries | ||
Condensed Financial Statements Captions [Line Items] | ||
NET SALES | 841 | 911 |
COST OF SALES | 721 | 751 |
Gross margin | 120 | 160 |
OPERATING EXPENSES | ||
Marketing and administrative expenses | 68 | 66 |
Science and technology expenses | 14 | 15 |
Charges related to cost reduction actions | 0 | 1 |
Other (income) expenses, net | 6 | 2 |
Total operating expenses | 88 | 84 |
EARNINGS BEFORE INTEREST AND TAXES | 32 | 76 |
Interest expense, net | 1 | 1 |
EARNINGS BEFORE TAXES | 31 | 75 |
Less: Income tax expense (benefit) | 9 | -13 |
Equity in net earnings of subsidiaries | 29 | 62 |
NET EARNINGS | 51 | 150 |
Less: Net earnings attributable to noncontrolling interests | 0 | 0 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | 51 | 150 |
Non Guarantor Subsidiaries | ||
Condensed Financial Statements Captions [Line Items] | ||
NET SALES | 461 | 456 |
COST OF SALES | 372 | 382 |
Gross margin | 89 | 74 |
OPERATING EXPENSES | ||
Marketing and administrative expenses | 29 | 34 |
Science and technology expenses | 3 | 4 |
Charges related to cost reduction actions | 0 | 11 |
Other (income) expenses, net | 7 | -29 |
Total operating expenses | 39 | 20 |
EARNINGS BEFORE INTEREST AND TAXES | 50 | 54 |
Interest expense, net | 1 | 0 |
EARNINGS BEFORE TAXES | 49 | 54 |
Less: Income tax expense (benefit) | 19 | -8 |
Equity in net earnings of subsidiaries | 0 | 0 |
NET EARNINGS | 30 | 62 |
Less: Net earnings attributable to noncontrolling interests | 1 | 0 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | 29 | 62 |
Consolidation Eliminations | ||
Condensed Financial Statements Captions [Line Items] | ||
NET SALES | -95 | -89 |
COST OF SALES | -95 | -89 |
Gross margin | 0 | 0 |
OPERATING EXPENSES | ||
Marketing and administrative expenses | 0 | 0 |
Science and technology expenses | 0 | 0 |
Charges related to cost reduction actions | 0 | 0 |
Other (income) expenses, net | 0 | 0 |
Total operating expenses | 0 | 0 |
EARNINGS BEFORE INTEREST AND TAXES | 0 | 0 |
Interest expense, net | 0 | 0 |
EARNINGS BEFORE TAXES | 0 | 0 |
Less: Income tax expense (benefit) | 0 | 0 |
Equity in net earnings of subsidiaries | -80 | -212 |
NET EARNINGS | -80 | -212 |
Less: Net earnings attributable to noncontrolling interests | 0 | 0 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | ($80) | ($212) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (DETAIL) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Condensed Financial Statements Captions [Line Items] | ||
NET EARNINGS | $19 | $120 |
Currency translation adjustment (net of tax) | -50 | -16 |
Pension and other postretirement adjustment (net of tax) | 8 | 3 |
Deferred loss on hedging transactions (net of tax) | 1 | 0 |
COMPREHENSIVE EARNINGS (LOSS) | -22 | 107 |
Less: Comprehensive earnings attributable to noncontrolling interests | 1 | 0 |
COMPREHENSIVE EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | -23 | 107 |
Parent Company | ||
Condensed Financial Statements Captions [Line Items] | ||
NET EARNINGS | 18 | 120 |
Currency translation adjustment (net of tax) | -50 | -16 |
Pension and other postretirement adjustment (net of tax) | 8 | 3 |
Deferred loss on hedging transactions (net of tax) | 1 | 0 |
COMPREHENSIVE EARNINGS (LOSS) | -23 | 107 |
Less: Comprehensive earnings attributable to noncontrolling interests | 0 | 0 |
COMPREHENSIVE EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | -23 | 107 |
Guarantor Subsidiaries | ||
Condensed Financial Statements Captions [Line Items] | ||
NET EARNINGS | 51 | 150 |
Currency translation adjustment (net of tax) | 0 | 0 |
Pension and other postretirement adjustment (net of tax) | 0 | 0 |
Deferred loss on hedging transactions (net of tax) | 0 | 0 |
COMPREHENSIVE EARNINGS (LOSS) | 51 | 150 |
Less: Comprehensive earnings attributable to noncontrolling interests | 0 | 0 |
COMPREHENSIVE EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | 51 | 150 |
Non Guarantor Subsidiaries | ||
Condensed Financial Statements Captions [Line Items] | ||
NET EARNINGS | 30 | 62 |
Currency translation adjustment (net of tax) | 0 | 0 |
Pension and other postretirement adjustment (net of tax) | 0 | 0 |
Deferred loss on hedging transactions (net of tax) | 0 | 0 |
COMPREHENSIVE EARNINGS (LOSS) | 30 | 62 |
Less: Comprehensive earnings attributable to noncontrolling interests | 1 | 0 |
COMPREHENSIVE EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | 29 | 62 |
Consolidation Eliminations | ||
Condensed Financial Statements Captions [Line Items] | ||
NET EARNINGS | -80 | -212 |
Currency translation adjustment (net of tax) | 0 | 0 |
Pension and other postretirement adjustment (net of tax) | 0 | 0 |
Deferred loss on hedging transactions (net of tax) | 0 | 0 |
COMPREHENSIVE EARNINGS (LOSS) | -80 | -212 |
Less: Comprehensive earnings attributable to noncontrolling interests | 0 | 0 |
COMPREHENSIVE EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | ($80) | ($212) |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEET (DETAIL) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | $77 | $67 | $65 | $57 | ||
Receivables, less allowances | 844 | 674 | ||||
Due from affiliates | 0 | 0 | ||||
Inventories | 825 | 817 | ||||
Assets held for sale | 14 | 16 | ||||
Other current assets | 235 | 233 | ||||
Total current assets | 1,995 | 1,807 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Due from affiliates | 0 | 0 | ||||
Property, plant and equipment, net | 2,851 | 2,899 | ||||
Goodwill | 1,168 | 1,168 | ||||
Intangible assets | 1,013 | 1,017 | ||||
Deferred income taxes | 434 | 444 | ||||
Other non-current assets | 235 | 220 | ||||
TOTAL ASSETS | 7,696 | 7,555 | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 895 | 949 | ||||
Due to affiliates | 0 | 0 | ||||
Short-term debt | 14 | 31 | ||||
Long-term debt – current portion | 3 | 3 | ||||
Total current liabilities | 912 | 983 | ||||
Long-term debt, net of current portion | 2,274 | 1,991 | ||||
Due to affiliates | 0 | 0 | ||||
Pension plan liability | 424 | 447 | ||||
Other employee benefits liability | 249 | 252 | ||||
Deferred income taxes | 22 | 22 | ||||
Other liabilities | 132 | 130 | ||||
OWENS CORNING STOCKHOLDERS' EQUITY | ||||||
Preferred stock | 0 | [1] | 0 | [1] | ||
Common stock | 1 | [2] | 1 | [2] | ||
Additional paid in capital | 3,946 | 3,954 | ||||
Accumulated earnings | 803 | 805 | ||||
Accumulated other comprehensive deficit | -591 | -550 | -310 | -297 | ||
Cost of common stock in treasury | -515 | [3] | -518 | [3] | ||
Total Owens Corning stockholders’ equity | 3,644 | 3,692 | ||||
Noncontrolling interests | 39 | 38 | ||||
Total equity | 3,683 | 3,730 | ||||
TOTAL LIABILITIES AND EQUITY | 7,696 | 7,555 | ||||
Parent Company | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Receivables, less allowances | 0 | 0 | ||||
Due from affiliates | 0 | 0 | ||||
Inventories | 0 | 0 | ||||
Assets held for sale | 0 | 0 | ||||
Other current assets | 8 | 7 | ||||
Total current assets | 8 | 7 | ||||
Investment in subsidiaries | 7,502 | 7,504 | ||||
Due from affiliates | 0 | 0 | ||||
Property, plant and equipment, net | 359 | 359 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets | 0 | 0 | ||||
Deferred income taxes | 31 | 35 | ||||
Other non-current assets | 42 | 30 | ||||
TOTAL ASSETS | 7,942 | 7,935 | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 57 | 47 | ||||
Due to affiliates | 1,816 | 1,913 | ||||
Short-term debt | 0 | 0 | ||||
Long-term debt – current portion | 0 | 0 | ||||
Total current liabilities | 1,873 | 1,960 | ||||
Long-term debt, net of current portion | 2,004 | 1,851 | ||||
Due to affiliates | 0 | 0 | ||||
Pension plan liability | 302 | 310 | ||||
Other employee benefits liability | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Other liabilities | 119 | 122 | ||||
OWENS CORNING STOCKHOLDERS' EQUITY | ||||||
Preferred stock | 0 | 0 | ||||
Common stock | 1 | 1 | ||||
Additional paid in capital | 3,946 | 3,954 | ||||
Accumulated earnings | 803 | 805 | ||||
Accumulated other comprehensive deficit | -591 | -550 | ||||
Cost of common stock in treasury | -515 | -518 | ||||
Total Owens Corning stockholders’ equity | 3,644 | 3,692 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | 3,644 | 3,692 | ||||
TOTAL LIABILITIES AND EQUITY | 7,942 | 7,935 | ||||
Guarantor Subsidiaries | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | 4 | 1 | 3 | 3 | ||
Receivables, less allowances | 0 | 0 | ||||
Due from affiliates | 2,666 | 2,858 | ||||
Inventories | 540 | 527 | ||||
Assets held for sale | 0 | 0 | ||||
Other current assets | 138 | 132 | ||||
Total current assets | 3,348 | 3,518 | ||||
Investment in subsidiaries | 2,457 | 2,590 | ||||
Due from affiliates | 0 | 0 | ||||
Property, plant and equipment, net | 1,404 | 1,397 | ||||
Goodwill | 1,127 | 1,127 | ||||
Intangible assets | 985 | 989 | ||||
Deferred income taxes | 380 | 380 | ||||
Other non-current assets | 66 | 62 | ||||
TOTAL ASSETS | 9,767 | 10,063 | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 454 | 667 | ||||
Due to affiliates | 0 | 0 | ||||
Short-term debt | 0 | 25 | ||||
Long-term debt – current portion | 1 | 1 | ||||
Total current liabilities | 455 | 693 | ||||
Long-term debt, net of current portion | 15 | 15 | ||||
Due to affiliates | 826 | 881 | ||||
Pension plan liability | 0 | 0 | ||||
Other employee benefits liability | 235 | 237 | ||||
Deferred income taxes | 0 | 0 | ||||
Other liabilities | 175 | 175 | ||||
OWENS CORNING STOCKHOLDERS' EQUITY | ||||||
Preferred stock | 0 | 0 | ||||
Common stock | 0 | 0 | ||||
Additional paid in capital | 6,433 | 6,483 | ||||
Accumulated earnings | 1,628 | 1,579 | ||||
Accumulated other comprehensive deficit | 0 | 0 | ||||
Cost of common stock in treasury | 0 | 0 | ||||
Total Owens Corning stockholders’ equity | 8,061 | 8,062 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | 8,061 | 8,062 | ||||
TOTAL LIABILITIES AND EQUITY | 9,767 | 10,063 | ||||
Non Guarantor Subsidiaries | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | 73 | 66 | 62 | 54 | ||
Receivables, less allowances | 844 | 674 | ||||
Due from affiliates | 76 | 0 | ||||
Inventories | 285 | 290 | ||||
Assets held for sale | 14 | 16 | ||||
Other current assets | 89 | 94 | ||||
Total current assets | 1,381 | 1,140 | ||||
Investment in subsidiaries | 559 | 558 | ||||
Due from affiliates | 826 | 881 | ||||
Property, plant and equipment, net | 1,088 | 1,143 | ||||
Goodwill | 41 | 41 | ||||
Intangible assets | 231 | 238 | ||||
Deferred income taxes | 23 | 29 | ||||
Other non-current assets | 127 | 128 | ||||
TOTAL ASSETS | 4,276 | 4,158 | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 384 | 235 | ||||
Due to affiliates | 926 | 945 | ||||
Short-term debt | 14 | 6 | ||||
Long-term debt – current portion | 2 | 2 | ||||
Total current liabilities | 1,326 | 1,188 | ||||
Long-term debt, net of current portion | 255 | 125 | ||||
Due to affiliates | 0 | 0 | ||||
Pension plan liability | 122 | 137 | ||||
Other employee benefits liability | 14 | 15 | ||||
Deferred income taxes | 22 | 22 | ||||
Other liabilities | 41 | 43 | ||||
OWENS CORNING STOCKHOLDERS' EQUITY | ||||||
Preferred stock | 0 | 0 | ||||
Common stock | 0 | 0 | ||||
Additional paid in capital | 1,763 | 1,927 | ||||
Accumulated earnings | 694 | 663 | ||||
Accumulated other comprehensive deficit | 0 | 0 | ||||
Cost of common stock in treasury | 0 | 0 | ||||
Total Owens Corning stockholders’ equity | 2,457 | 2,590 | ||||
Noncontrolling interests | 39 | 38 | ||||
Total equity | 2,496 | 2,628 | ||||
TOTAL LIABILITIES AND EQUITY | 4,276 | 4,158 | ||||
Consolidation Eliminations | ||||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Receivables, less allowances | 0 | 0 | ||||
Due from affiliates | -2,742 | -2,858 | ||||
Inventories | 0 | 0 | ||||
Assets held for sale | 0 | 0 | ||||
Other current assets | 0 | 0 | ||||
Total current assets | -2,742 | -2,858 | ||||
Investment in subsidiaries | -10,518 | -10,652 | ||||
Due from affiliates | -826 | -881 | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Goodwill | 0 | 0 | ||||
Intangible assets | -203 | -210 | ||||
Deferred income taxes | 0 | 0 | ||||
Other non-current assets | 0 | 0 | ||||
TOTAL ASSETS | -14,289 | -14,601 | ||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | 0 | 0 | ||||
Due to affiliates | -2,742 | -2,858 | ||||
Short-term debt | 0 | 0 | ||||
Long-term debt – current portion | 0 | 0 | ||||
Total current liabilities | -2,742 | -2,858 | ||||
Long-term debt, net of current portion | 0 | 0 | ||||
Due to affiliates | -826 | -881 | ||||
Pension plan liability | 0 | 0 | ||||
Other employee benefits liability | 0 | 0 | ||||
Deferred income taxes | 0 | 0 | ||||
Other liabilities | -203 | -210 | ||||
OWENS CORNING STOCKHOLDERS' EQUITY | ||||||
Preferred stock | 0 | 0 | ||||
Common stock | 0 | 0 | ||||
Additional paid in capital | -8,196 | -8,410 | ||||
Accumulated earnings | -2,322 | -2,242 | ||||
Accumulated other comprehensive deficit | 0 | 0 | ||||
Cost of common stock in treasury | 0 | 0 | ||||
Total Owens Corning stockholders’ equity | -10,518 | -10,652 | ||||
Noncontrolling interests | 0 | 0 | ||||
Total equity | -10,518 | -10,652 | ||||
TOTAL LIABILITIES AND EQUITY | ($14,289) | ($14,601) | ||||
[1] | 10 shares authorized; none issued or outstanding at March 31, 2015, and | |||||
[2] | 400 shares authorized; 135.5 issued and 118.0 outstanding at March 31, 2015; 135.5 issued and 117.8 outstanding at | |||||
[3] | 17.5 shares at March 31, 2015, and 17.7 shares at |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (DETAIL) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
NET CASH FLOW USED FOR OPERATING ACTIVITIES | ||
NET CASH FLOW USED FOR OPERATING ACTIVITIES | ($149) | ($272) |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Additions to plant and equipment (including alloy) | -56 | -51 |
Proceeds from the sale of assets (including alloy) or affiliates | 0 | -3 |
Net cash flow used for investing activities | -56 | -54 |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||
Proceeds from senior revolving credit and receivables securitization facilities | 529 | 484 |
Payments on senior revolving credit and receivables securitization facilities | -247 | -149 |
Net increase (decrease) in short-term debt | -17 | 24 |
Cash dividends paid | -39 | 0 |
Purchases of treasury stock | -19 | -29 |
Other intercompany loans | 0 | 0 |
Other | 7 | 5 |
Net cash flow provided by financing activities | 214 | 335 |
Effect of exchange rate changes on cash | 1 | -1 |
Net increase in cash and cash equivalents | 10 | 8 |
Cash and cash equivalents at beginning of period | 67 | 57 |
Cash and cash equivalents at end of period | 77 | 65 |
Parent Company | ||
NET CASH FLOW USED FOR OPERATING ACTIVITIES | ||
NET CASH FLOW USED FOR OPERATING ACTIVITIES | 0 | 0 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Additions to plant and equipment (including alloy) | -3 | -3 |
Proceeds from the sale of assets (including alloy) or affiliates | 0 | 0 |
Net cash flow used for investing activities | -3 | -3 |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||
Proceeds from senior revolving credit and receivables securitization facilities | 398 | 433 |
Payments on senior revolving credit and receivables securitization facilities | -247 | -149 |
Net increase (decrease) in short-term debt | 0 | 0 |
Cash dividends paid | -39 | 0 |
Purchases of treasury stock | -19 | -29 |
Other intercompany loans | -97 | -257 |
Other | 7 | 5 |
Net cash flow provided by financing activities | 3 | 3 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase 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 |
Guarantor Subsidiaries | ||
NET CASH FLOW USED FOR OPERATING ACTIVITIES | ||
NET CASH FLOW USED FOR OPERATING ACTIVITIES | -157 | -222 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Additions to plant and equipment (including alloy) | -43 | -26 |
Proceeds from the sale of assets (including alloy) or affiliates | 0 | 0 |
Net cash flow used for investing activities | -43 | -26 |
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 |
Net increase (decrease) in short-term debt | -25 | 1 |
Cash dividends paid | 0 | 0 |
Purchases of treasury stock | 0 | 0 |
Other intercompany loans | 228 | 247 |
Other | 0 | 0 |
Net cash flow provided by financing activities | 203 | 248 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase in cash and cash equivalents | 3 | 0 |
Cash and cash equivalents at beginning of period | 1 | 3 |
Cash and cash equivalents at end of period | 4 | 3 |
Non Guarantor Subsidiaries | ||
NET CASH FLOW USED FOR OPERATING ACTIVITIES | ||
NET CASH FLOW USED FOR OPERATING ACTIVITIES | 8 | -50 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Additions to plant and equipment (including alloy) | -10 | -22 |
Proceeds from the sale of assets (including alloy) or affiliates | 0 | -3 |
Net cash flow used for investing activities | -10 | -25 |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||
Proceeds from senior revolving credit and receivables securitization facilities | 131 | 51 |
Payments on senior revolving credit and receivables securitization facilities | 0 | 0 |
Net increase (decrease) in short-term debt | 8 | 23 |
Cash dividends paid | 0 | 0 |
Purchases of treasury stock | 0 | 0 |
Other intercompany loans | -131 | 10 |
Other | 0 | 0 |
Net cash flow provided by financing activities | 8 | 84 |
Effect of exchange rate changes on cash | 1 | -1 |
Net increase in cash and cash equivalents | 7 | 8 |
Cash and cash equivalents at beginning of period | 66 | 54 |
Cash and cash equivalents at end of period | 73 | 62 |
Consolidation Eliminations | ||
NET CASH FLOW USED FOR OPERATING ACTIVITIES | ||
NET CASH FLOW USED FOR 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 | 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 |
Net increase (decrease) 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 increase 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 |