DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 19, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Owens Corning | |
Entity Central Index Key | 0001370946 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Current Reporting Status | Yes | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock Shares Outstanding | 108,569,534 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
NET SALES | $ 1,667 | $ 1,691 |
COST OF SALES | 1,342 | 1,336 |
Gross margin | 325 | 355 |
OPERATING EXPENSES | ||
Marketing and administrative expenses | 182 | 185 |
Science and technology expenses | 22 | 23 |
Other expenses, net | 5 | 20 |
Total operating expenses | 209 | 228 |
OPERATING INCOME | 116 | 127 |
Non-operating income | (2) | (4) |
EARNINGS BEFORE INTEREST AND TAXES | 118 | 131 |
Interest expense, net | 36 | 28 |
EARNINGS BEFORE TAXES | 82 | 103 |
Income tax expense | 39 | 11 |
Equity in net earnings of affiliates | 1 | 0 |
NET EARNINGS | 44 | 92 |
Net earnings attributable to noncontrolling interests | 0 | 0 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ 44 | $ 92 |
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS | ||
Basic (in dollars per share) | $ 0.40 | $ 0.83 |
Diluted (in dollars per share) | $ 0.40 | $ 0.82 |
WEIGHTED AVERAGE COMMON SHARES | ||
Basic (in shares) | 109.5 | 111.5 |
Diluted (in shares) | 110.1 | 112.8 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
NET EARNINGS | $ 44 | $ 92 |
Currency translation adjustment (net of tax of $(3) and $6 for the three months ended March 31, 2019 and 2018, respectively) | 11 | (15) |
Pension and other postretirement adjustment (net of tax of $0 and $(2) for the three months ended March 31, 2019 and 2018, respectively) | (1) | (2) |
Hedging adjustment (net of tax of $1 and $0 for the three months ended March 31, 2019 and 2018, respectively) | (1) | 1 |
COMPREHENSIVE EARNINGS | 53 | 76 |
Comprehensive earnings attributable to noncontrolling interests | 0 | 0 |
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ 53 | $ 76 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Currency translation tax | $ (3) | $ 6 |
Pension and other postretirement tax | 0 | (2) |
Hedging tax | $ 1 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 82 | $ 78 | |
Receivables, less allowances of $12 at March 31, 2019 and $16 at December 31, 2018 | 1,040 | 794 | |
Inventories | 1,109 | 1,072 | |
Assets held for sale | 3 | 3 | |
Other current assets | 99 | 73 | |
Total current assets | 2,333 | 2,020 | |
Property, plant and equipment, net | 3,776 | 3,811 | |
Operating lease right-of-use assets | 235 | 0 | |
Goodwill | 1,935 | 1,949 | |
Intangible assets | 1,758 | 1,779 | |
Deferred income taxes | 44 | 43 | |
Other non-current assets | 184 | 169 | |
TOTAL ASSETS | 10,265 | 9,771 | |
LIABILITIES AND EQUITY | |||
Current liabilities | 1,275 | 1,278 | |
Long-term debt, net of current portion | 3,711 | 3,362 | |
Pension plan liability | 258 | 268 | |
Other employee benefits liability | 187 | 190 | |
Non-current operating lease liabilities | 168 | 0 | |
Deferred income taxes | 169 | 141 | |
Other liabilities | 195 | 208 | |
OWENS CORNING STOCKHOLDERS’ EQUITY | |||
Preferred stock, par value $0.01 per share | [1] | 0 | 0 |
Common stock, par value $0.01 per share | [2] | 1 | 1 |
Additional paid in capital | 4,025 | 4,028 | |
Accumulated earnings | 2,033 | 2,013 | |
Accumulated other comprehensive deficit | (647) | (656) | |
Cost of common stock in treasury | [3] | (1,150) | (1,103) |
Total Owens Corning stockholders’ equity | 4,262 | 4,283 | |
Noncontrolling interests | 40 | 41 | |
Total equity | 4,302 | 4,324 | |
TOTAL LIABILITIES AND EQUITY | $ 10,265 | $ 9,771 | |
[1] | 10 shares authorized; none issued or outstanding at March 31, 2019 and December 31, 2018 | ||
[2] | 400 shares authorized; 135.5 issued and 108.6 outstanding at March 31, 2019; 135.5 issued and 109.5 outstanding at December 31, 2018 | ||
[3] | shares at March 31, 2019 and 26.0 shares at December 31, 2018 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 12 | $ 16 |
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 | 108,600,000 | 109,500,000 |
Treasury stock shares | 26,900,000 | 26,000,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock Outstanding | Treasury Stock | APIC | [1] | Accumulated Earnings | AOCI | [2] | NCI | [3] | |
Beginning balance (in shares) at Dec. 31, 2017 | 111.5 | 24 | |||||||||
Beginning balance at Dec. 31, 2017 | $ 4,204 | $ 1 | $ (911) | $ 4,011 | $ 1,575 | $ (514) | $ 42 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings attributable to Owens Corning | 92 | 92 | 0 | ||||||||
Net earnings attributable to noncontrolling interests | 0 | ||||||||||
Currency translation adjustment | (14) | (15) | 1 | ||||||||
Pension and other postretirement adjustment (net of tax) | (2) | (2) | |||||||||
Deferred loss on hedging transactions (net of tax) | 1 | 1 | |||||||||
Issuance of common stock under share-based payment plans, shares | 0.6 | (0.6) | |||||||||
Issuance of common stock under share-based payment plans | 0 | $ 21 | (21) | ||||||||
Purchases of treasury stock (shares) | 1.1 | 1.1 | |||||||||
Purchases of treasury stock | (113) | $ (113) | |||||||||
Stock-based compensation expense | 9 | 9 | |||||||||
Cumulative effect of accounting change | [4] | (12) | (12) | ||||||||
Dividends declared | [5] | (24) | (24) | ||||||||
Ending balance at Mar. 31, 2018 | 4,141 | $ 1 | $ (1,003) | 3,999 | 1,631 | (530) | 43 | ||||
Ending balance (in shares) at Mar. 31, 2018 | 111 | 24.5 | |||||||||
Beginning balance (in shares) at Dec. 31, 2018 | 109.5 | 26 | |||||||||
Beginning balance at Dec. 31, 2018 | 4,324 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings attributable to Owens Corning | 44 | 44 | 0 | ||||||||
Net earnings attributable to noncontrolling interests | 0 | ||||||||||
Currency translation adjustment | 10 | 11 | (1) | ||||||||
Pension and other postretirement adjustment (net of tax) | (1) | (1) | |||||||||
Deferred loss on hedging transactions (net of tax) | (1) | (1) | |||||||||
Issuance of common stock under share-based payment plans, shares | 0.4 | (0.4) | |||||||||
Issuance of common stock under share-based payment plans | 0 | $ 14 | (14) | ||||||||
Purchases of treasury stock (shares) | 1.3 | 1.3 | |||||||||
Purchases of treasury stock | (61) | $ (61) | |||||||||
Stock-based compensation expense | 11 | 11 | |||||||||
Dividends declared | [5] | (24) | (24) | ||||||||
Ending balance at Mar. 31, 2019 | $ 4,302 | $ 1 | $ (1,150) | $ 4,025 | $ 2,033 | $ (647) | $ 40 | ||||
Ending balance (in shares) at Mar. 31, 2019 | 108.6 | 26.9 | |||||||||
[1] | Additional Paid in Capital (APIC) | ||||||||||
[2] | Accumulated Other Comprehensive Earnings (Deficit) (“AOCI”) | ||||||||||
[3] | Noncontrolling Interest (“NCI”) | ||||||||||
[4] | Cumulative effect of accounting change relates to our adoption of accounting standard updates (ASU) 2014-09, "Revenue from Contracts with Customers (Topic 606)," and ASU 2016-16, "Intra-Entity Transfers of Assets Other Than Inventory (Topic 740)." | ||||||||||
[5] | Dividends declared of $0.22 per share and $0.21 per share as of March 31, 2019 and March 31, 2018, respectively. |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends (dollars per share) | $ 0.22 | $ 0.21 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
NET CASH FLOW USED FOR OPERATING ACTIVITIES | ||
NET EARNINGS | $ 44 | $ 92 |
Adjustments to reconcile net earnings to cash provided by operating activities: | ||
Depreciation and amortization | 113 | 109 |
Deferred income taxes | 29 | 1 |
Stock-based compensation expense | 11 | 9 |
Other non-cash | 15 | (1) |
Changes in operating assets and liabilities | (346) | (284) |
Pension fund contribution | (8) | (6) |
Payments for other employee benefits liabilities | (6) | (6) |
Other | (3) | (4) |
Net cash flow used for operating activities | (151) | (90) |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Cash paid for property, plant, and equipment | (98) | (101) |
Purchase of Interwrap | 0 | 14 |
Proceeds from the sale of assets or affiliates | 0 | (1,121) |
Other | 3 | 1 |
Net cash flow used for investing activities | (95) | (1,207) |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 0 | 389 |
Proceeds from senior revolving credit and receivables securitization facilities | 548 | 565 |
Payments on senior revolving credit and receivables securitization facilities | (182) | (197) |
Payments on term loan borrowing | 0 | (600) |
Net decrease in short-term debt | (13) | 0 |
Dividends paid | (48) | (46) |
Purchases of treasury stock | (61) | (111) |
Other | (3) | 1 |
Net cash flow provided by financing activities | 241 | 1,201 |
Effect of exchange rate changes on cash | 10 | (10) |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 5 | (106) |
Cash, cash equivalents and restricted cash at beginning of period | 85 | 253 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ 90 | $ 147 |
GENERAL
GENERAL | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [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, normal recurring 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, 2018 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 Form 10-K for the year ended December 31, 2018 (the " 2018 Form 10-K"). Certain reclassifications have been made to the periods presented for 2018 to conform to the classifications used in the periods presented for 2019 . Cash, Cash Equivalents and Restricted Cash On the Consolidated Statements of Cash Flows, the total of Cash, cash equivalents and restricted cash includes restricted cash of $8 million , $7 million , $7 million and $7 million as of March 31, 2019 , December 31, 2018 , March 31, 2018 and December 31, 2017 , respectively. Restricted cash primarily represents amounts received from a counterparty related to its performance assurance on an executory contract, which is included in Other current assets on the Consolidated Balance Sheets. These amounts are contractually required to be set aside, and the counterparty can exchange the cash for another form of performance assurance at its discretion. Accounting Pronouncements The following table summarizes recent ASU issued by the Financial Accounting Standards Board (FASB) that could have an impact on the Company's Consolidated Financial Statements: Standard Description Effective Date for Company Effect on the Consolidated Financial Statements Recently adopted standards: ASU 2016-02, "Leases (Topic 842)," as amended by ASU 2017-13, 2018-01, 2018-10, 2018-11, and 2019-01 The standard requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. The recognition and presentation of expenses will depend on classification as a finance or operating lease. Entities may elect to apply the provisions of the new leasing standard on January 1, 2019, without adjusting the comparative periods presented by recognizing a cumulative-effect adjustment to the opening balance of retained earnings. January 1, 2019 We adopted this standard using the optional transition method in the first quarter of 2019. Please refer to Note 9 of the Consolidated Financial Statements for transition disclosures as well as other ongoing disclosure requirements. Recently issued standards: ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" This standard replaces the incurred loss methodology for recognizing credit losses with a current expected credit losses model and applies to all financial assets, including trade receivables. Entities will adopt the standard using a modified-retrospective approach. January 1, 2020 We are currently assessing the impact this standard will have on our Consolidated Financial Statements. Our current accounts receivable policy (as described in Note 1 of our 2018 Form 10-K) uses historical and current information to estimate the amount of probable credit losses in our existing accounts receivable. We have not yet analyzed our current systems and methods to determine the impact of using forward-looking information to estimate expected credit losses. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has three reportable segments: Composites, Insulation and Roofing. Accounting policies for the segments are the same as those for the Company. The Company’s three reportable segments are defined as follows: Composites – The Composites segment includes vertically integrated downstream activities. The Company manufactures, fabricates and sells glass reinforcements in the form of fiber. Glass reinforcement materials are also used downstream by the Composites segment to manufacture and sell glass fiber products in the form of fabrics, non-wovens and other specialized products. Insulation – Within our Insulation segment, 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, flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation and foam insulation used in above- and below-grade construction applications. Roofing – Within our Roofing segment, the Company manufactures and sells residential roofing shingles, oxidized asphalt materials, roofing components used in residential and commercial construction and specialty applications, and synthetic packaging materials. 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 sold to the external customer. Three Months Ended 2019 2018 Reportable Segments Composites $ 513 $ 511 Insulation 591 596 Roofing 614 642 Total reportable segments 1,718 1,749 Corporate eliminations (51 ) (58 ) NET SALES $ 1,667 $ 1,691 External Customer Sales by Geographic Region United States $ 1,100 $ 1,128 Europe 296 279 Asia-Pacific 149 142 Rest of world 122 142 NET SALES $ 1,667 $ 1,691 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 within Corporate, Other and Eliminations. The following table summarizes EBIT by segment (in millions): Three Months Ended 2019 2018 Reportable Segments Composites $ 57 $ 60 Insulation 15 32 Roofing 74 97 Total reportable segments 146 189 Restructuring gains (costs) 2 (5 ) Acquisition-related costs — (14 ) Recognition of acquisition inventory fair value step-up — (2 ) General corporate expense and other (30 ) (37 ) Total corporate, other and eliminations (28 ) (58 ) EBIT $ 118 $ 131 |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The following table shows a disaggregation of Net sales (in millions): For the three months ended March 31, 2019 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 67 $ 196 $ 551 $ (48 ) $ 766 U.S. commercial and industrial 154 155 25 — 334 Europe 150 143 4 (1 ) 296 Asia-Pacific 112 34 3 — 149 Rest of world 30 63 31 (2 ) 122 NET SALES $ 513 $ 591 $ 614 $ (51 ) $ 1,667 For the three months ended March 31, 2018 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 76 $ 222 $ 559 $ (53 ) $ 804 U.S. commercial and industrial 139 147 39 (1 ) 324 Europe 157 119 3 — 279 Asia-Pacific 106 33 3 — 142 Rest of world 33 75 38 (4 ) 142 NET SALES $ 511 $ 596 $ 642 $ (58 ) $ 1,691 As of December 31, 2018 , our contract liability balances (for extended warranties, down payments and deposits, collectively) totaled $53 million , of which $13 million was recognized as revenue in the first three months of 2019 . As of March 31, 2019 , our contract liability balances totaled $53 million . |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of the following (in millions): March 31, 2019 December 31, 2018 Finished goods $ 767 $ 730 Materials and supplies 342 342 Total inventories $ 1,109 $ 1,072 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 , 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. Derivative Fair Values Our derivatives consist of natural gas forward swaps, cross-currency swaps and foreign exchange forward contracts, all of which are over-the-counter and not traded through an exchange. The Company uses widely accepted valuation tools to determine fair value, such as discounting cash flows to calculate a present value for the derivatives. The models use Level 2 inputs, such as forward curves and other commonly quoted observable transactions and prices. The fair value of our derivatives and hedging instruments are all classified as Level 2 investments within the three-tier hierarchy. 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 March 31, 2019 December 31, 2018 Derivative assets designated as hedging instruments: Net investment hedges: Cross-currency swaps Other current assets $ 9 $ 9 Cross currency swaps Other non-current assets $ 1 $ — Derivative liabilities designated as hedging instruments: Net investment hedges: Cross-currency swaps Other liabilities $ 5 $ 17 Cash flow hedges: Natural gas forward swaps Accounts payable and accrued liabilities $ 3 $ 1 Derivative assets not designated as hedging instruments: Foreign exchange forward contracts Other current assets $ 17 $ 1 Derivative liabilities not designated as hedging instruments: Foreign exchange forward contracts Accounts payable and accrued liabilities $ 1 $ 8 Consolidated Statements of Earnings Activity The following table presents the impact and respective location of derivative activities on the Consolidated Statements of Earnings (in millions): Three Months Ended Location 2019 2018 Derivative activity designated as hedging instruments: Cross-currency swap net investment hedges: Amount of gain recognized in earnings on derivative amounts excluded from effectiveness testing Interest expense, net $ (3 ) $ (3 ) Derivative activity not designated as hedging instruments: Foreign currency: Amount of gain recognized in earnings (a) Other expenses, net $ (19 ) $ (4 ) (a) Gains related to foreign currency derivatives were substantially offset by net revaluation impacts on foreign currency denominated balance sheet exposures, which were also recorded in Other expenses, net . Please refer to the "Other Derivatives" section below for additional detail. Consolidated Statements of Comprehensive Earnings Activity The following table presents the impact of derivative activities on the Consolidated Statements of Comprehensive Earnings (in millions): Amount of (Gain) Loss Recognized in Comprehensive Earnings Three Months Ended Hedging Type Derivative Financial Instrument 2019 2018 Net investment hedge Cross-currency swaps $ (13 ) $ 25 Cash flow hedge Natural gas forward swaps $ 2 $ (1 ) Cash Flow Hedges The Company uses a combination of derivative financial instruments, which qualify as cash flow hedges, and physical contracts to manage forecasted exposure to electricity and natural gas prices. As of March 31, 2019 , the notional amounts of these natural gas forward swaps was 2 MMBtu (or MMBtu equivalent) based on U.S. and European indices. Net Investment Hedges The Company has translation exposure resulting from translating the financial statements of foreign subsidiaries into U.S. Dollars, which is recognized in Currency translation adjustment (a component of AOCI). The Company uses cross-currency forward contracts to hedge a portion of the net investment in foreign subsidiaries against fluctuations in foreign exchange rates. As of March 31, 2019 , the notional amount of these derivative financial instruments was $516 million related to the U.S Dollar and European Euro. 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. As of March 31, 2019 , the Company had notional amounts of $735 million for non-designated derivative financial instruments related to foreign currency exposures in U.S. Dollars primarily related to Brazilian Real, Chinese Yuan, European Euro, Indian Rupee, Japanese Yen, and South Korean Won. In addition, the Company had notional amounts of $113 million for non-designated derivative financial instruments related to foreign currency exposures in European Euro primarily related to the Russian Ruble, Polish Zloty and Swedish Krona. Lastly, the Company had notional amounts of $5 million for non-designated derivative financial instruments related to foreign currency exposures in Swedish Krona primarily related to the Danish Krone and Norwegian Krone. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2019 | |
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): March 31, 2019 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years $ 549 $ (145 ) $ 404 Technology 17 years 319 (138 ) 181 Other 13 years 63 (29 ) 34 Indefinite-lived intangible assets: Trademarks 1,139 — 1,139 Total intangible assets $ 2,070 $ (312 ) $ 1,758 Goodwill $ 1,935 December 31, 2018 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years $ 554 $ (138 ) $ 416 Technology 17 years 321 (134 ) 187 Other 14 years 60 (28 ) 32 Indefinite-lived intangible assets: Trademarks 1,144 — 1,144 Total intangible assets $ 2,079 $ (300 ) $ 1,779 Goodwill $ 1,949 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 three months of 2019 . The changes in the net carrying amount of goodwill by segment are as follows (in millions): Composites Insulation Roofing Total Balance at December 31, 2018 $ 57 $ 1,495 $ 397 $ 1,949 Foreign currency translation — (13 ) (1 ) (14 ) Balance at March 31, 2019 $ 57 $ 1,482 $ 396 $ 1,935 Other Intangible Assets The Other category below primarily includes franchise agreements and quarry and emission rights. The changes in the gross carrying amount of intangible assets by asset group are as follows (in millions): Customer Relationships Technology Trademarks Other Total Balance at December 31, 2018 $ 554 $ 321 $ 1,144 $ 60 $ 2,079 Other additions, net — — — 3 3 Foreign currency translation (5 ) (2 ) (5 ) — (12 ) Balance at March 31, 2019 $ 549 $ 319 $ 1,139 $ 63 $ 2,070 The estimated amortization expense for intangible assets for the next five years is as follows (in millions): Period Amortization 2020 $ 50 2021 $ 49 2022 $ 45 2023 $ 42 2024 $ 39 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 Land $ 224 $ 224 Buildings and leasehold improvements 1,110 1,091 Machinery and equipment 4,784 4,628 Construction in progress 280 443 6,398 6,386 Accumulated depreciation (2,622 ) (2,575 ) Property, plant and equipment, net $ 3,776 $ 3,811 Machinery and equipment includes certain precious metals used in our production tooling, which comprise approximately 11% of total machinery and equipment as of March 31, 2019 and December 31, 2018 . Precious metals used in our production tooling are depleted as they are consumed during the production process, which typically represents an annual expense of about 3% of the outstanding carrying value. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Paroc Acquisition On February 5, 2018, the Company acquired all the outstanding equity of Paroc Group Oy ("Paroc"), a leading producer of mineral wool insulation for building and technical applications in Europe, for $1,121 million , net of cash acquired. The acquisition of Paroc expands the Company's mineral wool technology, grows its presence in the European insulation market, provides access to a variety of new end-use markets and will increase the Insulation segment's geographic sales mix outside of the U.S. and Canada. Paroc's operating results have been included in the Company’s Insulation segment within the Consolidated Financial Statements since the date of the acquisition. During the first three months of 2019 , the Consolidated Statements of Earnings included $38 million in Net Sales attributable to the acquisition (related to the one-year post-acquisition period). The pro forma effect of this acquisition on Net sales and Net earnings attributable to Owens Corning was immaterial. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES ASU 2016-02 Adoption On January 1, 2019, we adopted ASU 2016-02, "Leases (Topic 842)," and the related amendments (collectively "ASC 842"). We used the optional transition method of adoption, in which the cumulative effect of initially applying the new standard, as of January 1, 2019, to existing leases was $237 million to record the operating lease right-of-use assets and the related liabilities. Under this method of adoption, the comparative information in the Consolidated Financial Statements has not been revised and continues to be reported under the previously applicable lease accounting guidance (ASC 840). We elected the package of practical expedients permitted under the transition guidance which included the carry-forward of historical lease classification. As of December 31, 2018, leases classified as capital leases under Accounting Standard Codification (ASC) 840 of $16 million were included in Property, plant and equipment, net. As of March 31, 2019, finance lease right-of-use assets of $15 million , which were previously classified as capital leases under ASC 840, are now included in Other non-current assets. As of both December 31, 2018 and March 31, 2019, liabilities associated with capital leases and finance leases are included in Long-term debt, as they represent indebtedness for bank covenant purposes. Leases The Company leases certain equipment and facilities under both operating and finance leases expiring on various dates through 2032. The nature of these leases generally fall into the following five categories: real estate, material handling, fleet vehicles, office equipment and energy equipment. For leases with initial terms greater than 12 months, we consider these our right-of-use assets and record the related asset and obligation at the present value of lease payments over the term. For leases with initial terms equal to or less than 12 months, we do not consider them as right-of-use assets and instead consider them short-term lease costs that are recognized on a straight-line basis over the lease term. Many of our leases include escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when reasonably certain. These options to extend or terminate a lease are at our discretion. We have elected to take the practical expedient and not separate lease and non-lease components of contracts. We estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. Our lease agreements do not contain any material residual value guarantees. Balance Sheet Classification The table below presents the lease-related assets and liabilities recorded on the balance sheet (in millions): Leases Classification on Balance Sheet March 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 235 Finance lease assets Other non-current assets 15 Total lease assets $ 250 Liabilities Current Operating Current liabilities $ 67 Finance Current liabilities 4 Non-Current Operating Non-current operating lease liabilities 168 Finance Long-term debt, net of current portion 16 Total lease liabilities $ 255 Lease Costs For the three months ended March 31, 2019 , the Company recorded $20 million of operating lease expense and $3 million of short-term lease expense. The Company had an immaterial amount of finance lease expense and variable lease expense. Cash paid for operating leases approximated operating lease expense and non-cash right-of-use asset amortization for the three months ended March 31, 2019 . We added $18 million of operating lease liabilities as a result of obtaining operating lease right-of-use assets in three months ended March 31, 2019 . Other Information The tables below present supplemental information related to leases for the three months ended March 31, 2019 (in millions): Weighted-average remaining lease term (years) March 31, 2019 Operating leases 4.5 Finance leases 4.7 Weighted-average discount rate March 31, 2019 Operating leases 3.54 % Finance leases 7.61 % Maturities of Lease Liabilities As presented in our 2018 Form 10-K, the minimum future rental commitments under ASC 840 for non-cancelable operating leases with initial maturities greater than one year, payable over the remaining lives of the leases at December 31, 2018 were (in millions): Period Minimum Future Rental Commitments 2019 $ 83 2020 $ 64 2021 $ 47 2022 $ 31 2023 $ 18 2024 and beyond $ 27 Total rent expense was $106 million , $87 million and $79 million in the years ended December 31, 2018, 2017 and 2016, respectively. The table below reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet as of March 31, 2019 (in millions): Operating Leases Finance Leases 2019 $ 79 $ 4 2020 69 5 2021 53 5 2022 35 4 2023 20 3 2024 and beyond 31 2 Total minimum lease payments 287 23 Less: implied interest 52 3 Present value of future minimum lease payments 235 20 Less: current lease obligations 67 4 Long-term lease obligations $ 168 $ 16 As of March 31, 2019 , we have an immaterial amount of leases that have not yet commenced. |
LEASES | ASU 2016-02 Adoption On January 1, 2019, we adopted ASU 2016-02, "Leases (Topic 842)," and the related amendments (collectively "ASC 842"). We used the optional transition method of adoption, in which the cumulative effect of initially applying the new standard, as of January 1, 2019, to existing leases was $237 million to record the operating lease right-of-use assets and the related liabilities. Under this method of adoption, the comparative information in the Consolidated Financial Statements has not been revised and continues to be reported under the previously applicable lease accounting guidance (ASC 840). We elected the package of practical expedients permitted under the transition guidance which included the carry-forward of historical lease classification. As of December 31, 2018, leases classified as capital leases under Accounting Standard Codification (ASC) 840 of $16 million were included in Property, plant and equipment, net. As of March 31, 2019, finance lease right-of-use assets of $15 million , which were previously classified as capital leases under ASC 840, are now included in Other non-current assets. As of both December 31, 2018 and March 31, 2019, liabilities associated with capital leases and finance leases are included in Long-term debt, as they represent indebtedness for bank covenant purposes. Leases The Company leases certain equipment and facilities under both operating and finance leases expiring on various dates through 2032. The nature of these leases generally fall into the following five categories: real estate, material handling, fleet vehicles, office equipment and energy equipment. For leases with initial terms greater than 12 months, we consider these our right-of-use assets and record the related asset and obligation at the present value of lease payments over the term. For leases with initial terms equal to or less than 12 months, we do not consider them as right-of-use assets and instead consider them short-term lease costs that are recognized on a straight-line basis over the lease term. Many of our leases include escalation clauses, renewal options and/or termination options that are factored into our determination of lease payments when reasonably certain. These options to extend or terminate a lease are at our discretion. We have elected to take the practical expedient and not separate lease and non-lease components of contracts. We estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. Our lease agreements do not contain any material residual value guarantees. Balance Sheet Classification The table below presents the lease-related assets and liabilities recorded on the balance sheet (in millions): Leases Classification on Balance Sheet March 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 235 Finance lease assets Other non-current assets 15 Total lease assets $ 250 Liabilities Current Operating Current liabilities $ 67 Finance Current liabilities 4 Non-Current Operating Non-current operating lease liabilities 168 Finance Long-term debt, net of current portion 16 Total lease liabilities $ 255 Lease Costs For the three months ended March 31, 2019 , the Company recorded $20 million of operating lease expense and $3 million of short-term lease expense. The Company had an immaterial amount of finance lease expense and variable lease expense. Cash paid for operating leases approximated operating lease expense and non-cash right-of-use asset amortization for the three months ended March 31, 2019 . We added $18 million of operating lease liabilities as a result of obtaining operating lease right-of-use assets in three months ended March 31, 2019 . Other Information The tables below present supplemental information related to leases for the three months ended March 31, 2019 (in millions): Weighted-average remaining lease term (years) March 31, 2019 Operating leases 4.5 Finance leases 4.7 Weighted-average discount rate March 31, 2019 Operating leases 3.54 % Finance leases 7.61 % Maturities of Lease Liabilities As presented in our 2018 Form 10-K, the minimum future rental commitments under ASC 840 for non-cancelable operating leases with initial maturities greater than one year, payable over the remaining lives of the leases at December 31, 2018 were (in millions): Period Minimum Future Rental Commitments 2019 $ 83 2020 $ 64 2021 $ 47 2022 $ 31 2023 $ 18 2024 and beyond $ 27 Total rent expense was $106 million , $87 million and $79 million in the years ended December 31, 2018, 2017 and 2016, respectively. The table below reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet as of March 31, 2019 (in millions): Operating Leases Finance Leases 2019 $ 79 $ 4 2020 69 5 2021 53 5 2022 35 4 2023 20 3 2024 and beyond 31 2 Total minimum lease payments 287 23 Less: implied interest 52 3 Present value of future minimum lease payments 235 20 Less: current lease obligations 67 4 Long-term lease obligations $ 168 $ 16 As of March 31, 2019 , we have an immaterial amount of leases that have not yet commenced. |
WARRANTIES
WARRANTIES | 3 Months Ended |
Mar. 31, 2019 | |
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. Please refer to Note 1 of our 2018 Form 10-K for information about our separately-priced extended warranty contracts. A reconciliation of the warranty liability is as follows (in millions): Three Months Ended March 31, 2019 2018 Beginning balance $ 60 $ 55 Amounts accrued for current year 4 5 Settlements of warranty claims (3 ) (2 ) Ending balance $ 61 $ 58 |
RESTRUCTURING AND ACQUISITION-R
RESTRUCTURING AND ACQUISITION-RELATED COSTS | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ACQUISITION-RELATED COSTS | RESTRUCTURING AND ACQUISITION-RELATED COSTS The Company may incur restructuring, transaction and integration costs related to acquisitions, and may incur restructuring costs in connection with its global cost reduction and productivity initiatives. Restructuring Costs Pittsburgh Corning Acquisition-Related Restructuring Following the acquisition of Pittsburgh Corning into the Company's Insulation segment, the Company took actions to realize expected synergies from the newly acquired operations. The Company does not expect to recognize significant incremental costs throughout 2019. 2017 Cost Reduction Actions During the second quarter of 2017, the Company took actions to avoid future capital outlays and reduce costs in its Composites segment, mainly through decisions to close certain sub-scale manufacturing facilities in Asia Pacific (including Doudian, Peoples Republic of China and Thimmapur, India) and North America (Mexico City, Mexico and Brunswick, Maine) and to reposition assets in its Chambery, France operation. During the first three months of 2019 , the Company recorded a $3 million non-cash gain related to a lease termination in Mexico City, Mexico. The Company expects to recognize approximately $7 million of incremental costs throughout 2019. Consolidated Statements of Earnings Classification The following table presents the impact and respective location of total restructuring costs on the Consolidated Statements of Earnings, which are included within Corporate, Other and Eliminations (in millions): Three Months Ended March 31, Type of cost Location 2019 2018 Accelerated depreciation Cost of sales $ — $ 5 Other exit costs Cost of sales 1 2 Severance Other expenses, net — 1 Other exit gains Other expenses, net (3 ) (3 ) Total restructuring (gains)/costs $ (2 ) $ 5 Summary of Unpaid Liabilities The following table summarizes the status of the unpaid liabilities from the Company's restructuring activities (in millions): 2017 Cost Reduction Actions Pittsburgh Corning Acquisition-Related Restructuring Total Balance at December 31, 2018 $ 10 $ 7 $ 17 Restructuring gains (2 ) — (2 ) Payments (5 ) (2 ) (7 ) Non-cash items and reclassifications to other accounts 3 — 3 Balance at March 31, 2019 $ 6 $ 5 $ 11 Cumulative charges incurred $ 46 $ 20 $ 66 As of March 31, 2019 , the remaining liability balance is comprised of $11 million of severance, inclusive of $2 million of non-current severance and $9 million of severance the Company expects to pay over the next twelve months. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | Details of the Company’s outstanding long-term debt, as well as the fair values, are as follows (in millions): March 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value 4.20% senior notes, net of discount and financing fees, due 2022 $ 598 103 % $ 598 99 % 4.20% senior notes, net of discount and financing fees, due 2024 394 101 % 393 99 % 3.40% senior notes, net of discount and financing fees, due 2026 396 95 % 396 90 % 7.00% senior notes, net of discount and financing fees, due 2036 400 114 % 400 112 % 4.30% senior notes, net of discount and financing fees, due 2047 588 81 % 588 76 % 4.40% senior notes, net of discount and financing fees, due 2048 390 83 % 389 77 % Senior revolving credit facility, maturing in 2024 (a) 172 100 % — n/a Accounts receivables securitization facility, maturing in 2022 (a) 270 100 % 75 100 % Various finance leases, due through 2032 (a) (b) 20 100 % 24 100 % Term loan borrowing, maturing in 2021 (a) 500 100 % 500 100 % Other 8 n/a 8 n/a Total long-term debt 3,736 n/a 3,371 n/a Less – current portion (a) 25 100 % 9 100 % Long-term debt, net of current portion $ 3,711 n/a $ 3,362 n/a (a) The Company determined that the book value of the above noted long-term debt instruments approximates fair value. (b) Amounts reflected for December 31, 2018 represent capital lease obligations as recorded under ASC 840. The fair values of the Company's outstanding long-term debt instruments were estimated using market observable inputs, including quoted prices in active markets, market indices and interest rate measurements. Within the hierarchy of fair value measurements, these are Level 2 fair values. Senior Notes The Company issued $400 million of 2048 senior notes on January 25, 2018. Interest on the notes is payable semiannually in arrears on January 30 and July 30 each year, beginning on July 30, 2018. The proceeds from these notes were used, along with borrowings on a $600 million term loan commitment and borrowings on the Receivables Securitization Facility (as defined below), to fund the purchase of Paroc in the first quarter of 2018. The Company issued $600 million of 2047 senior notes on June 26, 2017. Interest on the notes is payable semiannually in arrears on January 15 and July 15 each year, beginning on January 15, 2018. A portion of the proceeds from these notes was used to fund the purchase of Pittsburgh Corning in 2017 and for general corporate purposes. The remaining proceeds were used to repay $144 million of our 2019 senior notes and $140 million of our 2036 senior notes. The Company issued $400 million of 2026 senior notes on August 8, 2016. Interest on the notes is payable semiannually in arrears on February 15 and August 15 each year, beginning on February 15, 2017. A portion of the proceeds from these notes was used to redeem $158 million of our 2016 senior notes. The remaining proceeds were used to pay down portions of our Receivables Securitization Facility and for general corporate purposes. The Company issued $400 million of 2024 senior notes on November 12, 2014. Interest on the notes is payable semiannually in arrears on June 1 and December 1 each year, beginning on June 1, 2015. A portion of the proceeds from these notes was used to repay $242 million of our 2016 senior notes and $105 million of our 2019 senior notes. The remaining proceeds were used to pay down our Senior Revolving Credit Facility (as defined below), finance general working capital needs, and for general corporate purposes. The Company issued $600 million of 2022 senior notes on October 17, 2012. Interest on the notes is payable semiannually in arrears on June 15 and December 15 each year, beginning on June 15, 2013. The proceeds of these notes were used to refinance $250 million of our 2016 senior notes and $100 million of our 2019 senior notes and pay down our Senior Revolving Credit Facility. On October 31, 2006, the Company issued $550 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 senior 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 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, 2019 . In the first quarter of 2016, the Company terminated interest rate swaps designated to hedge a portion of the 4.20% senior notes due 2022. The residual fair value of the swaps is recognized in Long-term debt, net of current portion on the Consolidated Balance Sheets as an unamortized interest rate swap basis adjustment and accounts for $5 million of the Other balance in the above table as of March 31, 2019 and December 31, 2018 . Senior Revolving Credit Facility The Company has an $800 million Senior Revolving Credit Facility that 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, federal funds rate plus a spread or LIBOR plus a spread. In April 2019, the Company entered into an amendment to extend the maturity date of the Senior Revolving Credit Facility by one year to 2024. 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, 2019 . Please refer to the Credit Facility Utilization paragraph below for liquidity information as of March 31, 2019 . Term Loan Borrowing The Company obtained a term loan borrowing on October 27, 2017 for $600 million (the "Term Loan"). The Company entered into the Term Loan, in part, to pay a portion of the purchase price of the Paroc acquisition. In the first quarter of 2018, the Company borrowed on the $600 million Term Loan, along with borrowings on the Receivables Securitization Facility and the proceeds of the 2048 senior notes, to fund the purchase of Paroc. The $600 million Term Loan requires partial quarterly principal repayments and full repayment by February 2021. As of March 31, 2019 , the Term Loan had $500 million outstanding. In March 2019, the Term Loan was amended to reduce the applicable interest rate on outstanding borrowings. The Term Loan 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 term loan. The Company was in compliance with these covenants as of March 31, 2019 . Receivables Securitization Facility Included in long-term debt on the Consolidated Balance Sheets are borrowings outstanding under a Receivables Purchase Agreement (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 $280 million RPA with certain financial institutions. The Company has the ability to borrow at the lenders' cost of funds, which approximates A-1/P-1 commercial paper rates vs. LIBOR, plus a fixed spread. In April 2019, the securitization facility (the "Receivables Securitization Facility") was amended to extend the maturity date to April 2022. The Receivables Securitization 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 securitization facility. The Company was in compliance with these covenants as of March 31, 2019 . Please refer to the Credit Facility Utilization section below for liquidity information as of March 31, 2019 . Owens Corning Receivables LLC’s sole business consists of the purchase or acceptance through capital contributions of trade receivables and related rights from Owens Corning Sales, LLC and the subsequent retransfer of or granting of a security interest in such trade receivables and related rights to certain purchasers who are party to the RPA. Owens Corning Receivables LLC is a separate legal entity with its own separate creditors who will be entitled, upon its liquidation, to be satisfied out of Owens Corning Receivables LLC’s assets prior to any assets or value in Owens Corning Receivables LLC becoming available to Owens Corning Receivables LLC’s equity holders. The assets of Owens Corning Receivables LLC are not available to pay creditors of the Company or any other affiliates of the Company or Owens Corning Sales, LLC. Credit Facility Utilization The following table shows how the Company utilized its primary sources of liquidity (in millions): Balance at March 31, 2019 Senior Revolving Credit Facility Receivables Securitization Facility Facility size or borrowing limit $ 800 $ 280 Collateral capacity limitation on availability — 8 Outstanding borrowings 172 270 Outstanding letters of credit 9 2 Availability on facility $ 619 $ — Short-Term Debt Short-term borrowings were $3 million and $16 million as of March 31, 2019 and December 31, 2018 , 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 11.0% and 3.0% for March 31, 2019 and December 31, 2018 , respectively. |
PENSION PLANS AND OTHER POSTRET
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 3 Months Ended |
Mar. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS Pension Plans The Company sponsors defined benefit pension plans. Under the plans, pension benefits are based on an employee’s years of service and, for certain categories of employees, qualifying compensation. Company contributions to these pension plans are determined by an independent actuary to meet or exceed minimum funding requirements. In our non-U.S. plans, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average future service period of plan participants expected to receive benefits. In our U.S. plans, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average remaining life expectancy of the inactive participants as substantially all of the plan participants are inactive. The following tables provide information regarding pension expense recognized (in millions): Three Months Ended March 31, 2019 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Components of Net Periodic Pension Cost Service cost $ 1 $ 1 $ 2 $ 2 $ 1 $ 3 Interest cost 9 3 12 9 3 12 Expected return on plan assets (13 ) (4 ) (17 ) (14 ) (5 ) (19 ) Amortization of actuarial loss 3 1 4 3 1 4 Net periodic pension cost $ — $ 1 $ 1 $ — $ — $ — The Company expects to contribute approximately $25 million in cash to the U.S. pension plans and another $14 million to non-U.S. plans during 2019 . The Company made cash contributions of $8 million to the plans during the three months ended March 31, 2019 . Postemployment and Postretirement Benefits Other than Pension Plans ("OPEB") 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 U.S. and non-U.S. plans for the periods indicated (in millions): Three Months Ended 2019 2018 Components of Net Periodic Benefit Cost Service cost $ — $ 1 Interest cost 2 2 Amortization of prior service cost (1 ) (1 ) Amortization of actuarial gain (2 ) (2 ) Net periodic benefit gain $ (1 ) $ — |
CONTINGENT LIABILITIES AND OTHE
CONTINGENT LIABILITIES AND OTHER MATTERS | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES AND OTHER MATTERS | CONTINGENT LIABILITIES AND OTHER MATTERS The Company may be involved in various legal and regulatory proceedings relating to employment, antitrust, tax, product liability, environmental and other matters (collectively, “Proceedings”). The Company regularly reviews the status of such Proceedings along with legal counsel. Liabilities for such Proceedings are recorded when it is probable that the liability has been incurred and when the amount of the liability can be reasonably estimated. Liabilities are adjusted when additional information becomes available. Management believes that the amount of any reasonably possible losses in excess of any amounts accrued, if any, with respect to such Proceedings or any other known claim, including the matters described below under the caption Environmental Matters (the “Environmental Matters”), are not 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 financial condition. While the likelihood is remote, the disposition of the Proceedings and Environmental Matters could have a material impact on the results of operations, cash flows or liquidity in any given reporting period. Litigation and Regulatory Proceedings The Company is involved in litigation and regulatory proceedings 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 matters have been made for probable losses that are reasonably estimable. Environmental Matters The Company has established policies and procedures designed to ensure that its operations are conducted in compliance with all relevant laws and regulations and that enable the Company to meet its high standards for corporate sustainability and environmental stewardship. Our manufacturing facilities are subject to numerous foreign, federal, state and local laws and regulations relating to the presence of hazardous materials, pollution and protection of the environment, including emissions to air, discharges to water, management of hazardous materials, handling and disposal of solid wastes, and remediation of contaminated sites. All Company manufacturing facilities operate using an ISO 14001 or equivalent environmental management system. The Company’s 2020 Sustainability Goals include significant global reductions in energy use, water consumption, waste to landfill, and emissions of greenhouse gases, fine particulate matter and toxic air emissions. Owens Corning is involved in remedial response activities and is responsible for environmental remediation at a number of sites, including certain of its currently owned or formerly owned plants. These responsibilities arise under a number of laws, including, but not limited to, the Federal Resource Conservation and Recovery Act, and similar state or local laws pertaining to the management and remediation of hazardous materials and petroleum. The Company has also been named a potentially responsible party under the U.S. Federal Superfund law, or state equivalents, at a number of disposal sites. The Company became involved in these sites as a result of government action or in connection with business acquisitions. As of March 31, 2019 , the Company was involved with a total of 22 sites worldwide, including 8 Superfund and state equivalent sites and 14 owned or formerly owned sites. None of the liabilities for these sites are individually significant to the Company. Remediation activities generally involve a potential range of activities and costs related to soil and groundwater contamination. This can include pre-cleanup activities such as fact-finding and investigation, risk assessment, feasibility studies, remedial action design and implementation (where actions may range from monitoring to removal of contaminants, to installation of longer-term remediation systems). A number of factors affect the cost of environmental remediation, including the number of parties involved in a particular site, the determination of the extent of contamination, the length of time the remediation may require, the complexity of environmental regulations, variability in clean-up standards, the need for legal action, and changes in remediation technology. Taking these factors into account, Owens Corning has predicted the costs of remediation reasonably estimated to be paid over a period of years. The Company accrues an amount on an undiscounted basis, consistent with the reasonable estimates of these costs when it is probable that a liability has been incurred. Actual cost may differ from these estimates for the reasons mentioned above. At March 31, 2019 , the Company had an accrual totaling $14 million for these costs, of which the current portion is $9 million . Changes in required remediation procedures or timing of those procedures, or discovery of contamination at additional sites, could result in material increases to the Company’s environmental obligations. |
STOCK COMPENSATION
STOCK COMPENSATION | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK COMPENSATION | STOCK COMPENSATION Stock Plans 2016 and 2019 Stock Plans On April 21, 2016, the Company’s stockholders approved the Owens Corning 2016 Stock Plan (the “2016 Stock Plan”) which authorizes grants of stock options, stock appreciation rights, restricted stock awards, restricted stock units, bonus stock awards and performance stock awards. At March 31, 2019 , the number of shares remaining available under the 2016 Stock Plan for all stock awards was approximately 1.7 million . On April 18, 2019, the Company's stockholders approved the Owens Corning 2019 Stock Plan (the "2019 Stock Plan") which authorizes grants of stock options, stock appreciation rights, restricted stock awards, restricted stock units, bonus stock awards and performance stock awards. Under the 2019 Stock Plan, 2.3 million shares of common stock may be granted in addition to the approximately 1.7 million shares of Company common stock that rolled over from the 2016 Stock Plan as of April 18, 2019. 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 2016 Stock Plan. Stock Options The Company did not grant any stock options during the three months ended March 31, 2019 . The Company calculates a weighted-average grant-date fair value using a Black-Scholes valuation model for options granted. Compensation expense for options is measured based on the fair market value of the option on the date of grant, and is recognized on a straight-line basis over a four -year vesting period. In general, the exercise price of each option awarded was equal to the market price of the Company’s common stock on the date of grant, and an option’s maximum term is 10 years. The Company did not recognize any stock option expense during the three months ended March 31, 2019 . During the three months ended March 31, 2018 , the Company recognized expense of less than $1 million related to the Company's stock options. As of March 31, 2019 , there was no unrecognized compensation cost related to stock options. The total aggregate intrinsic value of options outstanding as of March 31, 2019 was $4 million . The following table summarizes the Company’s stock option activity: Three Months Ended Number of Options Weighted- Average Exercise Price Beginning Balance 478,875 $ 37.18 Exercised (7,800 ) 13.89 Ending Balance 471,075 $ 37.57 The following table summarizes information about the Company’s options outstanding and exercisable: Options Outstanding Options Exercisable Options Outstanding Weighted-Average Number Exercisable at March 31, 2019 Weighted-Average Range of Exercise Prices Remaining Contractual Life Exercise Price Remaining Contractual Life Exercise Price $25.45 - $42.16 471,075 3.82 $ 37.57 471,075 3.82 $ 37.57 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 vesting period, which is typically three or four years. The Stock Plan allows alternate vesting schedules for death, disability, and retirement. During the three months ended March 31, 2019 , the Company recognized expense of $7 million related to the Company's restricted stock. During the three months ended March 31, 2018 , the Company recognized expense of $5 million related to the Company's restricted stock. As of March 31, 2019 , there was $52 million of total unrecognized compensation cost related to restricted stock. That cost is expected to be recognized over a weighted-average period of 2.48 years. The total fair value of shares vested during the three months ended March 31, 2019 and 2018 was $18 million and $17 million , respectively. The following table summarizes the Company’s restricted stock activity: Three Months Ended March 31, 2019 Number of Shares/Units Weighted-Average Grant-Date Fair Value Beginning Balance 1,479,374 $ 52.30 Granted 480,167 52.58 Vested (339,725 ) 54.14 Forfeited (12,300 ) 63.00 Ending Balance 1,607,516 $ 51.89 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 all performance shares is contingent on meeting internal company-based metrics or an external-based stock performance metric. In the three months ended March 31, 2019 , the Company granted both internal company-based and external-based metric PSUs. Internal based metrics The internal company-based metrics are based on various Company metrics and typically vest over a three-year period. The amount of stock distributed will vary from 0% to 200% of PSUs awarded depending on each award's design and performance versus the internal Company-based 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. The expected term represents the period from the grant date to the end of the vesting period. Pro-rata vesting may be utilized in the case of death, disability or approved retirement and awards if earned will be paid at the end of the vesting period. External-based metrics The external-based metrics vest after a three -year period. Outstanding grants are based on the Company's total stockholder return relative to the performance of the companies constituting the former S&P Building & Construction Industry Index or Dow Jones Construction and Materials 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. The external-based metric performance stock granted in 2019 uses various assumptions that include expected volatility of 26.7% , and a risk free interest rate of 2.5% , 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 U.S. 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. Pro-rata vesting may be utilized in the case of death, disability or approved retirement, and awards if earned will be paid at the end of the three -year period. During the three months ended March 31, 2019 and March 31, 2018 , the Company recognized expense of $3 million related to the Company's PSUs. As of March 31, 2019 , there was $22 million of total unrecognized compensation cost related to PSUs. That cost is expected to be recognized over a weighted-average period of 1.97 years. The following table summarizes the Company’s PSU activity: Three Months Ended Number of PSUs Weighted-Average Grant-Date Fair Value Beginning Balance 360,977 $ 75.23 Granted 205,350 58.40 Forfeited (1,100 ) 74.04 Ending Balance 565,227 $ 69.12 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. At the approval date, 2.0 million shares were available for purchase under the ESPP. As of March 31, 2019 , 0.7 million shares remain available for purchase. During the three months ended March 31, 2019 and March 31, 2018 , the Company recognized expense of $1 million related to the Company's ESPP. As of March 31, 2019 , there was $1 million of total unrecognized compensation cost related to the ESPP. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table is a reconciliation of weighted-average shares for calculating basic and diluted earnings per-share (in millions, except per share amounts): Three Months Ended 2019 2018 Net earnings attributable to Owens Corning $ 44 $ 92 Weighted-average number of shares outstanding used for basic earnings per share 109.5 111.5 Non-vested restricted and performance shares 0.4 1.0 Options to purchase common stock 0.2 0.3 Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share 110.1 112.8 Earnings per common share attributable to Owens Corning common stockholders: Basic $ 0.40 $ 0.83 Diluted $ 0.40 $ 0.82 For the three months ended March 31, 2019 , the number of shares used in the calculation of diluted earnings per share did not include 0.7 million non-vested restricted shares and 0.1 million non-vested performance shares, due to their anti-dilutive effect. For the three months ended March 31, 2018 , the number of shares used in the calculation of diluted earnings per share did not include 0.3 million non-vested restricted shares and 0.1 million non-vested performance shares, due to their anti-dilutive effect. On October 24, 2016, the Board of Directors approved a 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 Authorization”). The Repurchase Authorization enables the Company to repurchase shares through the open market, privately negotiated, or other transactions. The actual number of shares repurchased will depend on timing, market conditions and other factors and is at the Company’s discretion. The Company repurchased 1.0 million shares of its common stock for $48 million during the three months ended March 31, 2019 , under the Repurchase Authorization. As of March 31, 2019 , 3.6 million shares remain available for repurchase under the Repurchase Authorization. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table provides the Income tax expense (in millions) and effective tax rate for the periods indicated: Three Months Ended March 31, 2019 2018 Income tax expense $ 39 $ 11 Effective tax rate 48 % 11 % The difference between the effective tax rate and the U.S. federal statutory tax rate of 21% for the three months ended March 31, 2019 is primarily due to U.S. state and local income tax expense, the impact of higher foreign tax rates, legislative changes and other discrete adjustments. On March 6, 2019, the U.S. Treasury and the IRS proposed regulations that provide guidance on determining the amount of a domestic corporation’s deduction for the global intangible low-taxed income (GILTI) and foreign-derived intangible income (FDII) recently added by the U.S. Tax Cuts and Jobs Act of 2017 (the “Tax Act”). The proposed regulations provide special rules in determining the deduction amount which adjusted the Company’s 2018 tax estimate resulting in an increase to tax expense of $12 million for the three months ended March 31, 2019. The difference between the effective tax rate and the U.S. federal statutory tax rate of 21% for the three months ended March 31, 2018 is primarily due to excess tax benefits related to stock compensation, U.S. state and local income tax expense, the impact of higher foreign tax rates and other discrete adjustments. The Company continues to assert indefinite reinvestment in accordance with ASC 740 based on the laws as of enactment of the Tax Act. |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE DEFCIT | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE DEFICIT | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE DEFICIT The following table summarizes the changes in accumulated other comprehensive income (deficit) (in millions): Three Months Ended 2019 2018 Currency Translation Adjustment Beginning balance $ (306 ) $ (183 ) Net investment hedge amounts classified into AOCI, net of tax 10 (19 ) Gain on foreign currency translation 1 4 Other comprehensive income/(loss), net of tax 11 (15 ) Ending balance $ (295 ) $ (198 ) Pension and Other Postretirement Adjustment Beginning balance $ (350 ) $ (331 ) Amounts reclassified from AOCI to net earnings, net of tax (a) 1 1 Amounts classified into AOCI, net of tax (2 ) (3 ) Other comprehensive loss, net of tax (1 ) (2 ) Ending balance $ (351 ) $ (333 ) Hedging Adjustment Beginning balance $ — $ — Amounts classified into AOCI, net of tax (1 ) 1 Other comprehensive (loss)/income, net of tax (1 ) 1 Ending balance $ (1 ) $ 1 Total AOCI ending balance $ (647 ) $ (530 ) (a) These AOCI components are included in the computation of total Pension and OPEB expense and are recorded in Non-operating income. See Note 13 for additional information. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 sold to the external customer. Three Months Ended 2019 2018 Reportable Segments Composites $ 513 $ 511 Insulation 591 596 Roofing 614 642 Total reportable segments 1,718 1,749 Corporate eliminations (51 ) (58 ) NET SALES $ 1,667 $ 1,691 |
Schedule of Revenues by Geographical Areas | External Customer Sales by Geographic Region United States $ 1,100 $ 1,128 Europe 296 279 Asia-Pacific 149 142 Rest of world 122 142 NET SALES $ 1,667 $ 1,691 |
Schedule of Earnings before Interest and Taxes | The following table summarizes EBIT by segment (in millions): Three Months Ended 2019 2018 Reportable Segments Composites $ 57 $ 60 Insulation 15 32 Roofing 74 97 Total reportable segments 146 189 Restructuring gains (costs) 2 (5 ) Acquisition-related costs — (14 ) Recognition of acquisition inventory fair value step-up — (2 ) General corporate expense and other (30 ) (37 ) Total corporate, other and eliminations (28 ) (58 ) EBIT $ 118 $ 131 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table shows a disaggregation of Net sales (in millions): For the three months ended March 31, 2019 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 67 $ 196 $ 551 $ (48 ) $ 766 U.S. commercial and industrial 154 155 25 — 334 Europe 150 143 4 (1 ) 296 Asia-Pacific 112 34 3 — 149 Rest of world 30 63 31 (2 ) 122 NET SALES $ 513 $ 591 $ 614 $ (51 ) $ 1,667 For the three months ended March 31, 2018 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 76 $ 222 $ 559 $ (53 ) $ 804 U.S. commercial and industrial 139 147 39 (1 ) 324 Europe 157 119 3 — 279 Asia-Pacific 106 33 3 — 142 Rest of world 33 75 38 (4 ) 142 NET SALES $ 511 $ 596 $ 642 $ (58 ) $ 1,691 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consist of the following (in millions): March 31, 2019 December 31, 2018 Finished goods $ 767 $ 730 Materials and supplies 342 342 Total inventories $ 1,109 $ 1,072 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 December 31, 2018 Derivative assets designated as hedging instruments: Net investment hedges: Cross-currency swaps Other current assets $ 9 $ 9 Cross currency swaps Other non-current assets $ 1 $ — Derivative liabilities designated as hedging instruments: Net investment hedges: Cross-currency swaps Other liabilities $ 5 $ 17 Cash flow hedges: Natural gas forward swaps Accounts payable and accrued liabilities $ 3 $ 1 Derivative assets not designated as hedging instruments: Foreign exchange forward contracts Other current assets $ 17 $ 1 Derivative liabilities not designated as hedging instruments: Foreign exchange forward contracts Accounts payable and accrued liabilities $ 1 $ 8 |
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 Location 2019 2018 Derivative activity designated as hedging instruments: Cross-currency swap net investment hedges: Amount of gain recognized in earnings on derivative amounts excluded from effectiveness testing Interest expense, net $ (3 ) $ (3 ) Derivative activity not designated as hedging instruments: Foreign currency: Amount of gain recognized in earnings (a) Other expenses, net $ (19 ) $ (4 ) (a) Gains related to foreign currency derivatives were substantially offset by net revaluation impacts on foreign currency denominated balance sheet exposures, which were also recorded in Other expenses, net . Please refer to the "Other Derivatives" section below for additional detail. The following table presents the impact of derivative activities on the Consolidated Statements of Comprehensive Earnings (in millions): Amount of (Gain) Loss Recognized in Comprehensive Earnings Three Months Ended Hedging Type Derivative Financial Instrument 2019 2018 Net investment hedge Cross-currency swaps $ (13 ) $ 25 Cash flow hedge Natural gas forward swaps $ 2 $ (1 ) |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-lived Intangible Assets Amortization Expense | Intangible assets and goodwill consist of the following (in millions): March 31, 2019 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years $ 549 $ (145 ) $ 404 Technology 17 years 319 (138 ) 181 Other 13 years 63 (29 ) 34 Indefinite-lived intangible assets: Trademarks 1,139 — 1,139 Total intangible assets $ 2,070 $ (312 ) $ 1,758 Goodwill $ 1,935 December 31, 2018 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years $ 554 $ (138 ) $ 416 Technology 17 years 321 (134 ) 187 Other 14 years 60 (28 ) 32 Indefinite-lived intangible assets: Trademarks 1,144 — 1,144 Total intangible assets $ 2,079 $ (300 ) $ 1,779 Goodwill $ 1,949 The estimated amortization expense for intangible assets for the next five years is as follows (in millions): Period Amortization 2020 $ 50 2021 $ 49 2022 $ 45 2023 $ 42 2024 $ 39 The following table details the identifiable indefinite and definite-lived intangible assets acquired, their fair values (in millions) and estimated weighted average useful lives: Type of Intangible Asset Fair Value Weighted Average Useful Life Customer relationships $ 215 20 Technology - Know-how 61 15 Technology - Patented 12 5 Quarry Rights 7 45 Trademarks 213 Indefinite Total $ 508 |
Schedule of Goodwill | The changes in the net carrying amount of goodwill by segment are as follows (in millions): Composites Insulation Roofing Total Balance at December 31, 2018 $ 57 $ 1,495 $ 397 $ 1,949 Foreign currency translation — (13 ) (1 ) (14 ) Balance at March 31, 2019 $ 57 $ 1,482 $ 396 $ 1,935 |
Schedule of Finite-Lived Intangible Assets | The changes in the gross carrying amount of intangible assets by asset group are as follows (in millions): Customer Relationships Technology Trademarks Other Total Balance at December 31, 2018 $ 554 $ 321 $ 1,144 $ 60 $ 2,079 Other additions, net — — — 3 3 Foreign currency translation (5 ) (2 ) (5 ) — (12 ) Balance at March 31, 2019 $ 549 $ 319 $ 1,139 $ 63 $ 2,070 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consist of the following (in millions): March 31, December 31, 2018 Land $ 224 $ 224 Buildings and leasehold improvements 1,110 1,091 Machinery and equipment 4,784 4,628 Construction in progress 280 443 6,398 6,386 Accumulated depreciation (2,622 ) (2,575 ) Property, plant and equipment, net $ 3,776 $ 3,811 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Finite-lived Intangible Assets Amortization Expense | Intangible assets and goodwill consist of the following (in millions): March 31, 2019 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years $ 549 $ (145 ) $ 404 Technology 17 years 319 (138 ) 181 Other 13 years 63 (29 ) 34 Indefinite-lived intangible assets: Trademarks 1,139 — 1,139 Total intangible assets $ 2,070 $ (312 ) $ 1,758 Goodwill $ 1,935 December 31, 2018 Weighted Average Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortizable intangible assets: Customer relationships 20 years $ 554 $ (138 ) $ 416 Technology 17 years 321 (134 ) 187 Other 14 years 60 (28 ) 32 Indefinite-lived intangible assets: Trademarks 1,144 — 1,144 Total intangible assets $ 2,079 $ (300 ) $ 1,779 Goodwill $ 1,949 The estimated amortization expense for intangible assets for the next five years is as follows (in millions): Period Amortization 2020 $ 50 2021 $ 49 2022 $ 45 2023 $ 42 2024 $ 39 The following table details the identifiable indefinite and definite-lived intangible assets acquired, their fair values (in millions) and estimated weighted average useful lives: Type of Intangible Asset Fair Value Weighted Average Useful Life Customer relationships $ 215 20 Technology - Know-how 61 15 Technology - Patented 12 5 Quarry Rights 7 45 Trademarks 213 Indefinite Total $ 508 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease-Related Assets and Liabilities | The table below presents the lease-related assets and liabilities recorded on the balance sheet (in millions): Leases Classification on Balance Sheet March 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 235 Finance lease assets Other non-current assets 15 Total lease assets $ 250 Liabilities Current Operating Current liabilities $ 67 Finance Current liabilities 4 Non-Current Operating Non-current operating lease liabilities 168 Finance Long-term debt, net of current portion 16 Total lease liabilities $ 255 |
Supplemental Cash Flow Information Related to Leases | The tables below present supplemental information related to leases for the three months ended March 31, 2019 (in millions): Weighted-average remaining lease term (years) March 31, 2019 Operating leases 4.5 Finance leases 4.7 Weighted-average discount rate March 31, 2019 Operating leases 3.54 % Finance leases 7.61 % |
Schedule of Future Minimum Rental Payments for Operating Leases | As presented in our 2018 Form 10-K, the minimum future rental commitments under ASC 840 for non-cancelable operating leases with initial maturities greater than one year, payable over the remaining lives of the leases at December 31, 2018 were (in millions): Period Minimum Future Rental Commitments 2019 $ 83 2020 $ 64 2021 $ 47 2022 $ 31 2023 $ 18 2024 and beyond $ 27 |
Lessee, Operating Lease, Liability, Maturity | The table below reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet as of March 31, 2019 (in millions): Operating Leases Finance Leases 2019 $ 79 $ 4 2020 69 5 2021 53 5 2022 35 4 2023 20 3 2024 and beyond 31 2 Total minimum lease payments 287 23 Less: implied interest 52 3 Present value of future minimum lease payments 235 20 Less: current lease obligations 67 4 Long-term lease obligations $ 168 $ 16 |
Finance Lease, Liability, Maturity | The table below reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet as of March 31, 2019 (in millions): Operating Leases Finance Leases 2019 $ 79 $ 4 2020 69 5 2021 53 5 2022 35 4 2023 20 3 2024 and beyond 31 2 Total minimum lease payments 287 23 Less: implied interest 52 3 Present value of future minimum lease payments 235 20 Less: current lease obligations 67 4 Long-term lease obligations $ 168 $ 16 |
WARRANTIES (Tables)
WARRANTIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The Company records a liability for warranty obligations at the date the related products are sold. Adjustments are made as new information becomes available. Please refer to Note 1 of our 2018 Form 10-K for information about our separately-priced extended warranty contracts. A reconciliation of the warranty liability is as follows (in millions): Three Months Ended March 31, 2019 2018 Beginning balance $ 60 $ 55 Amounts accrued for current year 4 5 Settlements of warranty claims (3 ) (2 ) Ending balance $ 61 $ 58 |
RESTRUCTURING AND ACQUISITION_2
RESTRUCTURING AND ACQUISITION-RELATED COSTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs on the Consolidated Statements of Earnings | Consolidated Statements of Earnings Classification The following table presents the impact and respective location of total restructuring costs on the Consolidated Statements of Earnings, which are included within Corporate, Other and Eliminations (in millions): Three Months Ended March 31, Type of cost Location 2019 2018 Accelerated depreciation Cost of sales $ — $ 5 Other exit costs Cost of sales 1 2 Severance Other expenses, net — 1 Other exit gains Other expenses, net (3 ) (3 ) Total restructuring (gains)/costs $ (2 ) $ 5 |
Schedule of Restructuring Reserve by Type of Cost | Summary of Unpaid Liabilities The following table summarizes the status of the unpaid liabilities from the Company's restructuring activities (in millions): 2017 Cost Reduction Actions Pittsburgh Corning Acquisition-Related Restructuring Total Balance at December 31, 2018 $ 10 $ 7 $ 17 Restructuring gains (2 ) — (2 ) Payments (5 ) (2 ) (7 ) Non-cash items and reclassifications to other accounts 3 — 3 Balance at March 31, 2019 $ 6 $ 5 $ 11 Cumulative charges incurred $ 46 $ 20 $ 66 As of March 31, 2019 , the remaining liability balance is comprised of $11 million of severance, inclusive of $2 million of non-current severance and $9 million of severance the Company expects to pay over the next twelve months. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Details of the Company’s outstanding long-term debt, as well as the fair values, are as follows (in millions): March 31, 2019 December 31, 2018 Carrying Value Fair Value Carrying Value Fair Value 4.20% senior notes, net of discount and financing fees, due 2022 $ 598 103 % $ 598 99 % 4.20% senior notes, net of discount and financing fees, due 2024 394 101 % 393 99 % 3.40% senior notes, net of discount and financing fees, due 2026 396 95 % 396 90 % 7.00% senior notes, net of discount and financing fees, due 2036 400 114 % 400 112 % 4.30% senior notes, net of discount and financing fees, due 2047 588 81 % 588 76 % 4.40% senior notes, net of discount and financing fees, due 2048 390 83 % 389 77 % Senior revolving credit facility, maturing in 2024 (a) 172 100 % — n/a Accounts receivables securitization facility, maturing in 2022 (a) 270 100 % 75 100 % Various finance leases, due through 2032 (a) (b) 20 100 % 24 100 % Term loan borrowing, maturing in 2021 (a) 500 100 % 500 100 % Other 8 n/a 8 n/a Total long-term debt 3,736 n/a 3,371 n/a Less – current portion (a) 25 100 % 9 100 % Long-term debt, net of current portion $ 3,711 n/a $ 3,362 n/a (a) The Company determined that the book value of the above noted long-term debt instruments approximates fair value. (b) Amounts reflected for December 31, 2018 represent capital lease obligations as recorded under ASC 840. |
Schedule of Line of Credit Facilities | The following table shows how the Company utilized its primary sources of liquidity (in millions): Balance at March 31, 2019 Senior Revolving Credit Facility Receivables Securitization Facility Facility size or borrowing limit $ 800 $ 280 Collateral capacity limitation on availability — 8 Outstanding borrowings 172 270 Outstanding letters of credit 9 2 Availability on facility $ 619 $ — |
PENSION PLANS AND OTHER POSTR_2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Pension Plan | |
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, 2019 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Components of Net Periodic Pension Cost Service cost $ 1 $ 1 $ 2 $ 2 $ 1 $ 3 Interest cost 9 3 12 9 3 12 Expected return on plan assets (13 ) (4 ) (17 ) (14 ) (5 ) (19 ) Amortization of actuarial loss 3 1 4 3 1 4 Net periodic pension cost $ — $ 1 $ 1 $ — $ — $ — |
Other Postretirement Benefits Plan | |
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 U.S. and non-U.S. plans for the periods indicated (in millions): Three Months Ended 2019 2018 Components of Net Periodic Benefit Cost Service cost $ — $ 1 Interest cost 2 2 Amortization of prior service cost (1 ) (1 ) Amortization of actuarial gain (2 ) (2 ) Net periodic benefit gain $ (1 ) $ — |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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: Three Months Ended Number of Options Weighted- Average Exercise Price Beginning Balance 478,875 $ 37.18 Exercised (7,800 ) 13.89 Ending Balance 471,075 $ 37.57 |
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 Outstanding Weighted-Average Number Exercisable at March 31, 2019 Weighted-Average Range of Exercise Prices Remaining Contractual Life Exercise Price Remaining Contractual Life Exercise Price $25.45 - $42.16 471,075 3.82 $ 37.57 471,075 3.82 $ 37.57 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes the Company’s restricted stock activity: Three Months Ended March 31, 2019 Number of Shares/Units Weighted-Average Grant-Date Fair Value Beginning Balance 1,479,374 $ 52.30 Granted 480,167 52.58 Vested (339,725 ) 54.14 Forfeited (12,300 ) 63.00 Ending Balance 1,607,516 $ 51.89 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest | The following table summarizes the Company’s PSU activity: Three Months Ended Number of PSUs Weighted-Average Grant-Date Fair Value Beginning Balance 360,977 $ 75.23 Granted 205,350 58.40 Forfeited (1,100 ) 74.04 Ending Balance 565,227 $ 69.12 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table is a reconciliation of weighted-average shares for calculating basic and diluted earnings per-share (in millions, except per share amounts): Three Months Ended 2019 2018 Net earnings attributable to Owens Corning $ 44 $ 92 Weighted-average number of shares outstanding used for basic earnings per share 109.5 111.5 Non-vested restricted and performance shares 0.4 1.0 Options to purchase common stock 0.2 0.3 Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share 110.1 112.8 Earnings per common share attributable to Owens Corning common stockholders: Basic $ 0.40 $ 0.83 Diluted $ 0.40 $ 0.82 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table provides the Income tax expense (in millions) and effective tax rate for the periods indicated: Three Months Ended March 31, 2019 2018 Income tax expense $ 39 $ 11 Effective tax rate 48 % 11 % |
CHANGES IN ACCUMULATED OTHER _2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE DEFCIT (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income (deficit) (in millions): Three Months Ended 2019 2018 Currency Translation Adjustment Beginning balance $ (306 ) $ (183 ) Net investment hedge amounts classified into AOCI, net of tax 10 (19 ) Gain on foreign currency translation 1 4 Other comprehensive income/(loss), net of tax 11 (15 ) Ending balance $ (295 ) $ (198 ) Pension and Other Postretirement Adjustment Beginning balance $ (350 ) $ (331 ) Amounts reclassified from AOCI to net earnings, net of tax (a) 1 1 Amounts classified into AOCI, net of tax (2 ) (3 ) Other comprehensive loss, net of tax (1 ) (2 ) Ending balance $ (351 ) $ (333 ) Hedging Adjustment Beginning balance $ — $ — Amounts classified into AOCI, net of tax (1 ) 1 Other comprehensive (loss)/income, net of tax (1 ) 1 Ending balance $ (1 ) $ 1 Total AOCI ending balance $ (647 ) $ (530 ) (a) These AOCI components are included in the computation of total Pension and OPEB expense and are recorded in Non-operating income. See Note 13 for additional information. |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Accounting Changes and Error Corrections [Abstract] | ||||
Restricted cash | $ 8 | $ 7 | $ 7 | $ 7 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Reporting, Significant Reconciling Item [Line Items] | ||
Number of reportable segments | segment | 3 | |
NET SALES | $ 1,667 | $ 1,691 |
EBIT | 118 | 131 |
Restructuring gains (costs) | 2 | (5) |
Acquisition-related costs | 0 | (14) |
Recognition of acquisition inventory fair value step-up | 0 | (2) |
General corporate expense and other | (30) | (37) |
U.S. | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
NET SALES | 1,100 | 1,128 |
Europe | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
NET SALES | 296 | 279 |
Asia-Pacific | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
NET SALES | 149 | 142 |
Other Geographical | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
NET SALES | 122 | 142 |
Composites | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
NET SALES | 513 | 511 |
EBIT | 57 | 60 |
Insulation | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
NET SALES | 591 | 596 |
EBIT | 15 | 32 |
Roofing | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
NET SALES | 614 | 642 |
EBIT | 74 | 97 |
Total Segments | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
NET SALES | 1,718 | 1,749 |
EBIT | 146 | 189 |
Corporate Eliminations | ||
Segment Reporting, Significant Reconciling Item [Line Items] | ||
NET SALES | (51) | (58) |
EBIT | $ (28) | $ (58) |
REVENUE - Disaggregated Revenue
REVENUE - Disaggregated Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | $ 1,667 | $ 1,691 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 296 | 279 |
Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 149 | 142 |
Rest of world | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 122 | 142 |
Composites | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 513 | 511 |
Composites | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 150 | |
Composites | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 112 | |
Composites | Rest of world | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 30 | |
Insulation | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 591 | 596 |
Insulation | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 143 | |
Insulation | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 34 | |
Insulation | Rest of world | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 63 | |
Roofing | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 614 | 642 |
Roofing | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 4 | |
Roofing | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 3 | |
Roofing | Rest of world | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 31 | |
Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | (51) | (58) |
Eliminations | Europe | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | (1) | |
Eliminations | Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 0 | |
Eliminations | Rest of world | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | (2) | |
U.S. residential | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 766 | 804 |
U.S. residential | Composites | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 67 | |
U.S. residential | Insulation | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 196 | |
U.S. residential | Roofing | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 551 | |
U.S. residential | Eliminations | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | (48) | |
U.S. commercial and industrial | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 334 | $ 324 |
U.S. commercial and industrial | Composites | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 154 | |
U.S. commercial and industrial | Insulation | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 155 | |
U.S. commercial and industrial | Roofing | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | 25 | |
U.S. commercial and industrial | Eliminations | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Disaggregated revenue | $ 0 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liability | $ 53 | $ 53 |
Contract liability, revenue recognized | $ 13 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 767 | $ 730 |
Materials and supplies | 342 | 342 |
Total inventories | $ 1,109 | $ 1,072 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS BALANCE SHEET (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other Current Assets | Designated as Hedging Instrument | Net Investment Hedging | Cross Currency Interest Rate Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 9 | $ 9 |
Other Current Assets | Nondesignated as Hedging Instrument | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 17 | 1 |
Other non-current assets | Designated as Hedging Instrument | Net Investment Hedging | Cross Currency Interest Rate Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 1 | 0 |
Other Liabilities | Designated as Hedging Instrument | Net Investment Hedging | Cross Currency Interest Rate Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 5 | 17 |
Accounts Payable and Accrued Liabilities | Designated as Hedging Instrument | Cash Flow Hedging | Energy Related Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 3 | 1 |
Accounts Payable and Accrued Liabilities | Nondesignated as Hedging Instrument | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 1 | $ 8 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS INCOME STATEMENT (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Interest expense, net | Designated as Hedging Instrument | Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative, Gain on Derivative | $ (3) | $ (3) | |
Other expenses, net | Nondesignated as Hedging Instrument | Foreign Exchange Contract | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amount of (gain)/loss recognized in earnings | [1] | (19) | $ (4) |
Net Investment Hedging | Cross Currency Interest Rate Contract | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amount of (gain)/loss recognized in earnings | 13 | ||
Cash Flow Hedging | Energy Related Derivative | |||
Derivative Instruments Gain Loss [Line Items] | |||
Amount of (gain)/loss recognized in earnings | $ (2) | ||
[1] | Gains related to foreign currency derivatives were substantially offset by net revaluation impacts on foreign currency denominated balance sheet exposures, which were also recorded in Other expenses, net. Please refer to the "Other Derivatives" section below for additional detail. |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS CASH FLOW (Details) € in Millions, $ in Millions | Mar. 31, 2019EUR (€)MMBTU | Mar. 31, 2019USD ($)MMBTU |
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 2 | 2 |
United States of America, Dollars | Cross Currency Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 516 | |
Euro Member Countries, Euro | Cross Currency Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, notional amount | € | € 516 | |
Euro Member Countries, Euro | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 113 | |
U.S. | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 735 | |
Sweden | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 5 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 2,070 | $ 2,079 |
Accumulated amortization | (312) | (300) |
Intangible assets | 1,758 | 1,779 |
Goodwill | $ 1,935 | $ 1,949 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 20 years | 20 years |
Gross carrying amount | $ 549 | $ 554 |
Accumulated amortization | (145) | (138) |
Net carrying amount | $ 404 | $ 416 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 17 years | 17 years |
Gross carrying amount | $ 319 | $ 321 |
Accumulated amortization | (138) | (134) |
Net carrying amount | $ 181 | $ 187 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life | 13 years | 14 years |
Gross carrying amount | $ 63 | $ 60 |
Accumulated amortization | (29) | (28) |
Net carrying amount | 34 | 32 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,139 | 1,144 |
Accumulated amortization | 0 | 0 |
Indefinite-lived intangible assets | $ 1,139 | $ 1,144 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - GOODWILL ROLLFORWARD (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Balance at beginning of period | $ 1,949 |
Foreign currency translation | (14) |
Balance at end of period | 1,935 |
Composites | |
Goodwill [Line Items] | |
Balance at beginning of period | 57 |
Foreign currency translation | 0 |
Balance at end of period | 57 |
Insulation | |
Goodwill [Line Items] | |
Balance at beginning of period | 1,495 |
Foreign currency translation | (13) |
Balance at end of period | 1,482 |
Roofing | |
Goodwill [Line Items] | |
Balance at beginning of period | 397 |
Foreign currency translation | (1) |
Balance at end of period | $ 396 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - INTANGIBLE ASSETS ROLLFORWARD (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Balance at beginning of period | $ 2,079,000,000 |
Other additions, net | 3,000,000 |
Foreign currency translation | (12,000,000) |
Balance at end of period | 2,070,000,000 |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Balance at beginning of period | 554,000,000 |
Other additions, net | 0 |
Foreign currency translation | (5,000,000) |
Balance at end of period | 549,000,000 |
Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Balance at beginning of period | 321,000,000 |
Other additions, net | 0 |
Foreign currency translation | (2,000,000) |
Balance at end of period | 319,000,000 |
Trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Balance at beginning of period | 1,144,000,000 |
Other additions, net | 0 |
Foreign currency translation | (5,000,000) |
Balance at end of period | 1,139,000,000 |
Other | |
Finite-Lived Intangible Assets [Line Items] | |
Balance at beginning of period | 60,000,000 |
Other additions, net | 3,000,000 |
Foreign currency translation | 0 |
Balance at end of period | $ 63,000,000 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense (Details) $ in Millions | Mar. 31, 2019USD ($) | [1] |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 50 | |
2021 | 49 | |
2022 | 45 | |
2023 | 42 | |
2024 | $ 39 | |
[1] | PeriodAmortization2020$502021$492022$452023$422024$39 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Property plant and equipment, gross | $ 6,398 | $ 6,386 |
Accumulated depreciation | (2,622) | (2,575) |
Property, plant and equipment, net | $ 3,776 | $ 3,811 |
Precious metals depletion percentage | 11.00% | 11.00% |
Precious metal percent of deprecation expense | 0.03 | |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property plant and equipment, gross | $ 224 | $ 224 |
Buildings and leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Property plant and equipment, gross | 1,110 | 1,091 |
Machinery and equipment | ||
Property Plant And Equipment [Line Items] | ||
Property plant and equipment, gross | 4,784 | 4,628 |
Construction in progress | ||
Property Plant And Equipment [Line Items] | ||
Property plant and equipment, gross | $ 280 | $ 443 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions | Feb. 05, 2018 | Jun. 27, 2017 | Mar. 31, 2019 |
Paroc Group | |||
Business Acquisition [Line Items] | |||
Business combination, consideration transferred | $ 1,121 | ||
Net sales recognized | $ 38 | ||
Pittsburgh Corning | |||
Business Acquisition [Line Items] | |||
Business combination, consideration transferred | $ 563 |
ACQUISITIONS - Intangible Asset
ACQUISITIONS - Intangible Assets Acquired (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 508 |
Customer relationships | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 215 |
Weighted average useful life | 20 years |
Technology - Know-how | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 61 |
Weighted average useful life | 15 years |
Technology - Patented | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 12 |
Weighted average useful life | 5 years |
Quarry Rights | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 7 |
Weighted average useful life | 45 years |
Trademarks | |
Business Acquisition [Line Items] | |
Intangible assets acquired | $ 213 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
Leases [Abstract] | |||||
Operating lease right-of-use assets | $ 235 | $ 0 | $ 237 | ||
Operating lease, liability | 235 | $ 237 | |||
Capital leases, assets | 16 | ||||
Finance lease, right-of-use asset | 15 | ||||
Operating lease cost | 20 | ||||
Short-term lease cost | 3 | ||||
Right of use asset obtained in exchanged for operating lease liability | 18 | ||||
Rent expense | $ 106 | $ 87 | $ 79 | ||
Operating lease, liability, current | $ 67 |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 235 | $ 237 | $ 0 |
Finance lease, right-of-use asset | 15 | ||
Total lease assets | 250 | ||
Operating lease, liability, current | 67 | ||
Finance lease, liability, current | 4 | ||
Non-current operating lease liabilities | 168 | $ 0 | |
Non-current finance leases | 16 | ||
Total lease liabilities | $ 255 |
LEASES - Supplemental Informati
LEASES - Supplemental Information Related to Leases (Details) | Mar. 31, 2019 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term | 4 years 6 months |
Financing lease, weighted average remaining lease term | 4 years 7 months 28 days |
Operating lease, weighted average discount rate, percent | 3.54% |
Finance lease, weighted average discount rate, percent | 7.61% |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments (Details) $ in Millions | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
2019 | $ 83 |
2020 | 64 |
2021 | 47 |
2022 | 31 |
2023 | 18 |
2024 and beyond | $ 27 |
LEASES - Maturity of Payments f
LEASES - Maturity of Payments for Operating and FInancing Leases (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating Lease Liabilities, Payments Due [Abstract] | |||
2019 | $ 79 | ||
2020 | 69 | ||
2021 | 53 | ||
2022 | 35 | ||
2023 | 20 | ||
2024 and beyond | 31 | ||
Total minimum lease payments | 287 | ||
Less: interest | 52 | ||
Present value of future minimum lease payments | 235 | $ 237 | |
Less: current lease obligations | 67 | ||
Long-term lease obligations | 168 | $ 0 | |
Finance Lease Liabilities, Payments, Due [Abstract] | |||
2019 | 4 | ||
2020 | 5 | ||
2021 | 5 | ||
2022 | 4 | ||
2023 | 3 | ||
2024 and beyond | 2 | ||
Total minimum lease payments | 23 | ||
Less: interest | 3 | ||
Present value of future minimum lease payments | 20 | ||
Less: current lease obligations | 4 | ||
Long-term lease obligations | $ 16 |
WARRANTIES (Details)
WARRANTIES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Movement In Standard And Extended Product Warranty Increase Decrease Roll Forward | ||
Product warranty accrual, beginning balance | $ 60 | $ 55 |
Amounts accrued for current year | 4 | 5 |
Settlements of warranty claims | (3) | (2) |
Product warranty accrual, ending balance | $ 61 | $ 58 |
RESTRUCTURING AND ACQUISITION_3
RESTRUCTURING AND ACQUISITION-RELATED COSTS RESTRUCTURING (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ (2) | $ 5 | |
Payments | (7) | ||
Non-cash items and reclassifications to other accounts | (3) | ||
Restructuring reserve | 11 | $ 17 | |
Cumulative charges incurred | 66 | ||
Pittsburgh Corning Related Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | ||
Payments | (2) | ||
Non-cash items and reclassifications to other accounts | 0 | ||
Restructuring reserve | 5 | 7 | |
Cumulative charges incurred | 20 | ||
Cost Reductions Actions 2017 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (2) | ||
Payments | (5) | ||
Non-cash items and reclassifications to other accounts | (3) | ||
Restructuring reserve | 6 | $ 10 | |
Cumulative charges incurred | 46 | ||
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring reserve | 11 | ||
Restructuring reserve, noncurrent | 2 | ||
Restructuring reserve, current | 9 | ||
Employee Severance | Cost Reductions Actions 2017 | Other expenses, net | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 0 | 1 | |
Additional Exit Costs | Cost Reductions Actions 2017 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost remaining | 7 | ||
Additional Exit Costs | Cost Reductions Actions 2017 | Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | 1 | 2 | |
Additional Exit Gains | Cost Reductions Actions 2017 | Other expenses, net | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | (3) | (3) | |
Accelerated Depreciation | Cost Reductions Actions 2017 | Cost of sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, accelerated depreciation | 0 | $ 5 | |
Mexico | Cost Reductions Actions 2017 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring costs | $ (3) |
DEBT (Details)
DEBT (Details) - USD ($) | 3 Months Ended | ||||||||||||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 31, 2018 | Apr. 01, 2018 | Jan. 25, 2018 | Oct. 27, 2017 | Jun. 26, 2017 | Aug. 08, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Nov. 12, 2014 | Oct. 17, 2012 | ||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 3,736,000,000 | $ 3,371,000,000 | |||||||||||||
Fair value long-term debt | [1] | 100.00% | 100.00% | ||||||||||||
Other | $ 8,000,000 | $ 8,000,000 | |||||||||||||
Long-term debt, current maturities | [1] | 25,000,000 | 9,000,000 | ||||||||||||
Long-term debt, net of current portion | 3,711,000,000 | 3,362,000,000 | |||||||||||||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | ||||||||||||||
Short-term debt | $ 3,000,000 | $ 16,000,000 | |||||||||||||
Debt instrument, term | 1 year | ||||||||||||||
Short-term debt, weighted average interest rate, at point in time | 11.00% | 3.00% | |||||||||||||
Senior Notes Due 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 598,000,000 | $ 598,000,000 | |||||||||||||
Fair value long-term debt | 103.00% | 99.00% | |||||||||||||
Long-term debt, percentage rate | 4.20% | 4.20% | |||||||||||||
Debt instrument, face amount | $ 600,000,000 | ||||||||||||||
Debt instrument, interest rate, stated percentage | 4.20% | ||||||||||||||
Senior Notes Due 2024 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 394,000,000 | $ 393,000,000 | |||||||||||||
Fair value long-term debt | 101.00% | 99.00% | |||||||||||||
Long-term debt, percentage rate | 4.20% | 4.20% | |||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||
Senior Notes Due 2026 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 396,000,000 | $ 396,000,000 | |||||||||||||
Fair value long-term debt | 95.00% | 90.00% | |||||||||||||
Long-term debt, percentage rate | 3.40% | 3.40% | |||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||
Senior Notes Due 2036 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 400,000,000 | $ 400,000,000 | |||||||||||||
Fair value long-term debt | 114.00% | 112.00% | |||||||||||||
Long-term debt, percentage rate | 7.00% | 7.00% | |||||||||||||
Debt instrument, face amount | $ 550,000,000 | ||||||||||||||
Repayments of debt | $ 140,000,000 | ||||||||||||||
Senior Notes Due 2047 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 588,000,000 | $ 588,000,000 | |||||||||||||
Fair value long-term debt | 81.00% | 76.00% | |||||||||||||
Long-term debt, percentage rate | 4.30% | ||||||||||||||
Debt instrument, face amount | $ 600,000,000 | ||||||||||||||
Senior Notes Due 2048 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | $ 390,000,000 | $ 389,000,000 | |||||||||||||
Fair value long-term debt | 83.00% | 77.00% | |||||||||||||
Long-term debt, percentage rate | 4.40% | ||||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||
Revolving Credit Facility | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | [1] | $ 172,000,000 | $ 0 | ||||||||||||
Fair value long-term debt | [1] | 100.00% | |||||||||||||
Accounts receivables securitization facility, maturing in 2022 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | [1] | $ 270,000,000 | $ 75,000,000 | ||||||||||||
Fair value long-term debt | [1] | 100.00% | 100.00% | ||||||||||||
Various finance leases and other, due through and beyond 2050 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | [1],[2] | $ 20,000,000 | $ 24,000,000 | ||||||||||||
Fair value long-term debt | [1],[2] | 100.00% | 100.00% | ||||||||||||
Term loan borrowings, maturing in 2021 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt | [1] | $ 500,000,000 | $ 500,000,000 | ||||||||||||
Fair value long-term debt | [1] | 100.00% | 100.00% | ||||||||||||
Senior Notes Due 2019 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of debt | $ 144,000,000 | $ 105,000,000 | $ 100,000,000 | ||||||||||||
Senior Notes Due 2016 | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Repayments of debt | 158,000,000 | $ 242,000,000 | $ 250,000,000 | ||||||||||||
Term Loan Commitment | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Availability on facility | 500,000,000 | ||||||||||||||
Term Loan Commitment Two | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | ||||||||||||||
Senior Revolving Credit Facility B | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Proceeds from issuance of debt | $ 600,000,000 | ||||||||||||||
Line of credit facility, maximum borrowing capacity | 800,000,000 | $ 600,000,000 | |||||||||||||
Availability on facility | 619,000,000 | ||||||||||||||
Letter Of Credit Under Receivables Purchase Agreement | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Long-term debt, current maturities | $ 280,000,000 | ||||||||||||||
Line of credit facility, maximum borrowing capacity | 280,000,000 | ||||||||||||||
Availability on facility | 0 | ||||||||||||||
Long-term Debt | |||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||
Other | $ 5,000,000 | $ 5,000,000 | |||||||||||||
[1] | The Company determined that the book value of the above noted long-term debt instruments approximates fair value. | ||||||||||||||
[2] | Amounts reflected for December 31, 2018 represent capital lease obligations as recorded under ASC 840. |
DEBT - Credit Facility Utilizat
DEBT - Credit Facility Utilization (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Oct. 27, 2017 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Facility size or borrowing limit | $ 800 | ||
Term Loan Commitment | |||
Debt Instrument [Line Items] | |||
Availability on facility | $ 500 | ||
Senior Revolving Credit Facility B | |||
Debt Instrument [Line Items] | |||
Facility size or borrowing limit | 800 | $ 600 | |
Outstanding borrowings | 172 | ||
Outstanding letters of credit | 9 | ||
Availability on facility | 619 | ||
Letter Of Credit Under Receivables Purchase Agreement | |||
Debt Instrument [Line Items] | |||
Facility size or borrowing limit | 280 | ||
Collateral capacity limitation on availability | 8 | ||
Outstanding borrowings | 270 | ||
Outstanding letters of credit | 2 | ||
Availability on facility | $ 0 |
PENSION PLANS AND OTHER POSTR_3
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2019 | |
Pension Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 2 | $ 3 | |
Interest cost | 12 | 12 | |
Expected return on plan assets | (17) | (19) | |
Amortization of actuarial loss | 4 | 4 | |
Net periodic benefit gain | 1 | 0 | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
Contributions by employer | 8 | ||
Other Postretirement Benefits Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 1 | |
Interest cost | 2 | 2 | |
Amortization of prior service cost | (1) | (1) | |
Amortization of actuarial loss | (2) | (2) | |
Net periodic benefit gain | (1) | 0 | |
U.S. | Pension Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 1 | 2 | |
Interest cost | 9 | 9 | |
Expected return on plan assets | (13) | (14) | |
Amortization of actuarial loss | 3 | 3 | |
Net periodic benefit gain | 0 | 0 | |
Foreign Plan | Pension Plan | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 1 | 1 | |
Interest cost | 3 | 3 | |
Expected return on plan assets | (4) | (5) | |
Amortization of actuarial loss | 1 | 1 | |
Net periodic benefit gain | $ 1 | $ 0 | |
Scenario, Forecast | U.S. | Pension Plan | |||
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
Expected future employer contributions, current fiscal year | $ 25 | ||
Scenario, Forecast | Foreign Plan | Pension Plan | |||
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
Expected future employer contributions, current fiscal year | $ 14 |
CONTINGENT LIABILITIES AND OT_2
CONTINGENT LIABILITIES AND OTHER MATTERS (Details) $ in Millions | Mar. 31, 2019USD ($)site |
Unusual or Infrequent Item, or Both [Line Items] | |
Environmental liability sites | 22 |
Environmental exit costs, accrual | $ | $ 14 |
Environmental exit costs, accrual, current | $ | $ 9 |
Superfund Site | |
Unusual or Infrequent Item, or Both [Line Items] | |
Environmental liability sites | 8 |
Owned or Formally Owned Sites | |
Unusual or Infrequent Item, or Both [Line Items] | |
Environmental liability sites | 14 |
STOCK COMPENSATION - Narrative
STOCK COMPENSATION - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2019USD ($)shares | Mar. 31, 2018USD ($) | Apr. 18, 2013shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grants (in shares) | shares | 0 | ||
Vesting period | 4 years | ||
Expected volatility rate | 26.70% | ||
Risk free interest rate | 2.50% | ||
Expected term (in years) | 2 years 10 months 26 days | ||
Maximum employee subscription rate | 85.00% | ||
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | shares | 2,000,000 | ||
Options Maximum term (in years) | 10 years | ||
Allocated share based compensation expense (less than) | $ 0 | $ 1,000,000 | |
Compensation not yet recognized, stock options | 0 | ||
Intrinsic value | 4,000,000 | ||
Employee emergence equity program expense | 1,000,000 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated share based compensation expense (less than) | 7,000,000 | 5,000,000 | |
Compensation cost not yet recognized | $ 52,000,000 | ||
Expected term (in years) | 2 years 5 months 22 days | ||
Vested in period, fair value | $ 18,000,000 | $ 17,000,000 | |
Performance Stock Units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Allocated share based compensation expense (less than) | $ 3,000,000 | ||
Compensation cost not yet recognized | $ 22,000,000 | ||
Period for recognition (in years) | 1 year 11 months 18 days | ||
Stock Plan Member, 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | shares | 1,700,000 | ||
Stock Plan Member, 2019 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | shares | 2,300,000 | ||
Internal Based Performance Metric | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance stock payout minimum | 0 | ||
Performance stock payout range maximum | 2 | ||
External Based Performance Metric | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance stock payout minimum | 0 | ||
Performance stock payout range maximum | 2 | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | shares | 700,000 | ||
Allocated share based compensation expense (less than) | $ 1,000,000 |
STOCK COMPENSATION - Stock Opti
STOCK COMPENSATION - Stock Option Activity (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Beginning Balance | shares | 478,875 |
Exercised (in shares) | shares | (7,800) |
Ending Balance | shares | 471,075 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Beginning Balance | $ / shares | $ 37.18 |
Exercised, weighted average exercise price | $ / shares | 13.89 |
Ending Balance | $ / shares | $ 37.57 |
STOCK COMPENSATION - Options Ou
STOCK COMPENSATION - Options Outstanding and Exercisable (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Exercise Price Range One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, number of outstanding options | shares | 471,075 |
Weighted average remaining contractual term (in years) | 3 years 9 months 25 days |
Exercise price range, outstanding options, weighted average exercise price | $ 37.57 |
Exercise price range, number of exercisable options | shares | 471,075 |
Exercise price range, exercisable options, weighted average remaining contractual term (in years) | 3 years 9 months 25 days |
Exercise price range, exercisable options, weighted average exercise price | $ 37.57 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, exercisable options, weighted average exercise price | 25.45 |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, exercisable options, weighted average exercise price | $ 42.16 |
STOCK COMPENSATION - Restricted
STOCK COMPENSATION - Restricted Stock Activity (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance | shares | 1,479,374 |
Granted (in shares) | shares | 480,167 |
Vested (in shares) | shares | (339,725) |
Forfeited (in shares) | shares | (12,300) |
Ending Balance | shares | 1,607,516 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance | $ / shares | $ 52.30 |
Granted, weighted average grant date fair value | $ / shares | 52.58 |
Vested, weighted average grant date fair value | $ / shares | 54.14 |
Forfeited, weighted average grant date fair value | $ / shares | 63 |
Ending Balance | $ / shares | $ 51.89 |
STOCK COMPENSATION - Performanc
STOCK COMPENSATION - Performance Stock Units (Details) - Performance Stock Units (PSUs) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning Balance | shares | 360,977 |
Granted (in shares) | shares | 205,350 |
Forfeited (in shares) | shares | (1,100) |
Ending Balance | shares | 565,227 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance | $ / shares | $ 75.23 |
Granted, weighted average grant date fair value | $ / shares | 58.40 |
Forfeited, weighted average grant date fair value | $ / shares | 74.04 |
Ending Balance | $ / shares | $ 69.12 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Oct. 24, 2016 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Net earnings attributable to Owens Corning | $ 44 | $ 92 | |
Weighted-average number of shares outstanding used for basic earnings per share | 109,500,000 | 111,500,000 | |
Non-vested restricted and performance shares | 400,000 | 1,000,000 | |
Options to purchase common stock | 200,000 | 300,000 | |
Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share | 110,100,000 | 112,800,000 | |
Basic (in dollars per share) | $ 0.40 | $ 0.83 | |
Diluted (in dollars per share) | $ 0.40 | $ 0.82 | |
Equity Class Of Treasury Stock [Line Items] | |||
Stock repurchased during period, shares | 1,000,000 | ||
Payments for repurchase of equity | $ 48 | ||
Stock repurchase program, remaining number of shares authorized to be repurchased | 3,600,000 | ||
Repurchase Program 2016 | |||
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 | 700,000 | 300,000 | |
Performance Shares | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 100,000 | 100,000 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 39 | $ 11 |
Effective tax rate | 48.00% | 11.00% |
Increase in tax expense | $ 12 |
CHANGES IN ACCUMULATED OTHER _3
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Total AOCI beginning balance | $ (656) | ||
Amounts classified into AOCI, net of tax | 0 | $ 2 | |
Total AOCI ending balance | (647) | (530) | |
Currency Translation Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Total AOCI beginning balance | (306) | (183) | |
Net investment hedge amounts classified into AOCI, net of tax | 10 | (19) | |
Gain on foreign currency translation | 1 | 4 | |
Other comprehensive income/(loss), net of tax | 11 | (15) | |
Total AOCI ending balance | (295) | (198) | |
Pension and Other Postretirement Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Total AOCI beginning balance | (350) | (331) | |
Other comprehensive income/(loss), net of tax | (1) | (2) | |
Amounts reclassified from AOCI to net earnings, net of tax | [1] | 1 | 1 |
Amounts classified into AOCI, net of tax | (2) | (3) | |
Total AOCI ending balance | (351) | (333) | |
Hedging Adjustment | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Total AOCI beginning balance | 0 | 0 | |
Other comprehensive income/(loss), net of tax | (1) | 1 | |
Amounts classified into AOCI, net of tax | (1) | 1 | |
Total AOCI ending balance | $ (1) | $ 1 | |
[1] | These AOCI components are included in the computation of total Pension and OPEB expense and are recorded in Non-operating income. See Note 13 for additional information. |