Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 14, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-33100 | ||
Entity Registrant Name | Owens Corning | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 43-2109021 | ||
Entity Address, Address Line One | One Owens Corning Parkway, | ||
Entity Address, City or Town | Toledo, | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 43659 | ||
City Area Code | 419 | ||
Local Phone Number | 248-8000 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | OC | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,331,714,247 | ||
Entity Common Stock, Shares Outstanding | 108,277,883 | ||
Documents Incorporated by Reference | Portions of Owens Corning’s proxy statement to be delivered to stockholders in connection with the Annual Meeting of Stockholders to be held on or about April 16, 2020 (the “2020 Proxy Statement”) are incorporated by reference into Part III hereof | ||
Entity Central Index Key | 0001370946 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
NET SALES | $ 7,160 | $ 7,057 | $ 6,384 |
COST OF SALES | 5,551 | 5,425 | 4,815 |
Gross margin | 1,609 | 1,632 | 1,569 |
OPERATING EXPENSES | |||
Marketing and administrative expenses | 698 | 700 | 620 |
Science and technology expenses | 87 | 89 | 85 |
Other expenses, net | 37 | 36 | 67 |
Total operating expenses | 822 | 825 | 772 |
OPERATING INCOME | 787 | 807 | 797 |
Non-operating expense (income) | 34 | (14) | 60 |
EARNINGS BEFORE INTEREST AND TAXES | 753 | 821 | 737 |
Interest expense, net | 131 | 117 | 107 |
Loss on extinguishment of debt | 32 | 0 | 71 |
EARNINGS BEFORE TAXES | 590 | 704 | 559 |
Income tax expense | 186 | 156 | 269 |
Equity in net earnings / (loss) of affiliates | 1 | (1) | 0 |
NET EARNINGS | 405 | 547 | 290 |
Net earnings attributable to noncontrolling interests | 0 | 2 | 1 |
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ 405 | $ 545 | $ 289 |
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS | |||
Basic (dollars per share) | $ 3.71 | $ 4.94 | $ 2.59 |
Diluted (dollars per share) | $ 3.68 | $ 4.89 | $ 2.55 |
WEIGHTED AVERAGE COMMON SHARES | |||
Basic (in shares) | 109.2 | 110.4 | 111.5 |
Diluted (in shares) | 110.1 | 111.4 | 113.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
NET EARNINGS | $ 405 | $ 547 | $ 290 |
Currency translation adjustment (net of tax of $(4), $(4) and $15, for the periods ended December 31, 2019, 2018 and 2017, respectively) | 24 | (123) | 101 |
Pension and other postretirement adjustment (net of tax of $(10), $6, and $(32), for the periods ended December 31, 2019, 2018 and 2017, respectively) | 24 | (19) | 98 |
Hedging adjustment (net of tax of $1, $0 and $2, for the periods ended December 31, 2019, 2018 and 2017, respectively) | (2) | 0 | (3) |
COMPREHENSIVE EARNINGS | 451 | 405 | 486 |
Comprehensive earnings attributable to noncontrolling interests | 0 | 2 | 1 |
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ 451 | $ 403 | $ 485 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Currency translation tax | $ (0.1) | $ (0.4) | $ 0.2 |
Pension and other postretirement tax | 0 | 0 | (30.2) |
Hedging tax | $ (0.3) | $ 0.2 | $ (0.1) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 172 | $ 78 | |
Receivables, less allowances of $11 at December 31, 2019 and $16 at December 31, 2018 | 770 | 794 | |
Inventories | 1,033 | 1,072 | |
Other current assets | 86 | 76 | |
Total current assets | 2,061 | 2,020 | |
Property, plant and equipment, net | 3,855 | 3,811 | |
Operating lease right-of-use assets | 203 | ||
Goodwill | 1,932 | 1,949 | |
Intangible assets, net | 1,721 | 1,779 | |
Deferred income taxes | 46 | 43 | |
Other non-current assets | 188 | 169 | |
TOTAL ASSETS | 10,006 | 9,771 | |
LIABILITIES AND EQUITY | |||
Total current liabilities | 1,329 | 1,278 | |
Long-term debt, net of current portion | 2,986 | 3,362 | |
Pension plan liability | 231 | 268 | |
Other employee benefits liability | 179 | 190 | |
Non-current operating lease liabilities | 138 | ||
Deferred income taxes | 272 | 141 | |
Other liabilities | 200 | 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 | 4,051 | 4,028 | |
Accumulated earnings | 2,319 | 2,013 | |
Accumulated other comprehensive deficit | (610) | (656) | |
Cost of common stock in treasury | [3] | (1,130) | (1,103) |
Total Owens Corning stockholders’ equity | 4,631 | 4,283 | |
Noncontrolling interests | 40 | 41 | |
Total equity | 4,671 | 4,324 | |
TOTAL LIABILITIES AND EQUITY | $ 10,006 | $ 9,771 | |
[1] | 10 shares authorized; none issued or outstanding at December 31, 2019 and December 31, 2018 | ||
[2] | 400 shares authorized; 135.5 issued and 109.0 outstanding at December 31, 2019; 135.5 issued and 109.5 outstanding at December 31, 2018 | ||
[3] | 26.5 shares at December 31, 2019 and 26.0 shares at December 31, 2018 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 11 | $ 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 | 109,000,000 | 109,500,000 |
Treasury stock shares | 26,500,000 | 26,000,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock Outstanding | Treasury Stock | APIC | [1] | Accumulated Earnings | AOCI | NCI | |||||
Beginning balance (in shares) at Dec. 31, 2016 | 112.7 | 22.8 | |||||||||||
Beginning balance at Dec. 31, 2016 | $ 3,889 | $ 1 | $ (803) | $ 3,984 | $ 1,377 | $ (710) | [2] | $ 40 | [3] | ||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||||||||||
Net earnings attributable to Owens Corning | 289 | 289 | 0 | [3] | |||||||||
Net earnings attributable to noncontrolling interests | 1 | 1 | [3] | ||||||||||
Currency translation adjustment | 105 | 101 | [2] | 4 | [3] | ||||||||
Pension and other postretirement adjustment (net of tax) | 98 | 98 | [2] | ||||||||||
Deferred gain (loss) on hedging transactions (net of tax) | (3) | (3) | [2] | ||||||||||
Redeemable equity redeemed and changes in subsidiary shares from noncontrolling interests, (in shares) | $ 0 | 0 | |||||||||||
Redeemable equity redeemed and changes in subsidiary shares from noncontrolling interests | 1 | $ 0 | 2 | (1) | [3] | ||||||||
Issuance of common stock under share-based payment plans (in shares) | (1.3) | 1.3 | |||||||||||
Issuance of common stock under share-based payment plans | 29 | $ 48 | (19) | ||||||||||
Purchase of treasury stock (in shares) | 2.5 | (2.5) | |||||||||||
Purchases of treasury stock | (156) | $ (156) | |||||||||||
Stock-based compensation expense | 44 | 44 | |||||||||||
Dividends declared (e) | (93) | (91) | [4] | ||||||||||
Dividends declared (e) | [3],[4] | (2) | |||||||||||
Ending balance (in shares) at Dec. 31, 2017 | 111.5 | 24 | |||||||||||
Ending balance at Dec. 31, 2017 | 4,204 | [4] | $ 1 | $ (911) | 4,011 | 1,575 | (514) | [2] | 42 | [3] | |||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||||||||||
Net earnings attributable to Owens Corning | 545 | 545 | 0 | [3] | |||||||||
Net earnings attributable to noncontrolling interests | 2 | 2 | [3] | ||||||||||
Currency translation adjustment | (125) | (123) | [2] | (2) | [3] | ||||||||
Pension and other postretirement adjustment (net of tax) | (19) | (19) | [2] | ||||||||||
Issuance of common stock under share-based payment plans (in shares) | (1) | 1 | |||||||||||
Issuance of common stock under share-based payment plans | 14 | $ 44 | (30) | ||||||||||
Purchase of treasury stock (in shares) | 3 | (3) | |||||||||||
Purchases of treasury stock | (236) | $ (236) | |||||||||||
Stock-based compensation expense | 47 | 47 | |||||||||||
Cumulative effect of accounting change | [5] | (12) | (12) | ||||||||||
Dividends declared (e) | [4] | (96) | (95) | ||||||||||
Dividends declared (e) | [3],[4] | (1) | |||||||||||
Ending balance (in shares) at Dec. 31, 2018 | 109.5 | 26 | |||||||||||
Ending balance at Dec. 31, 2018 | 4,324 | $ 1 | $ (1,103) | 4,028 | 2,013 | (656) | [2] | 41 | [3] | ||||
Increase Decrease In Stockholders Equity [Roll Forward] | |||||||||||||
Net earnings attributable to Owens Corning | 405 | 405 | 0 | [3] | |||||||||
Net earnings attributable to noncontrolling interests | 0 | 0 | [3] | ||||||||||
Currency translation adjustment | 23 | 24 | [2] | (1) | [3] | ||||||||
Pension and other postretirement adjustment (net of tax) | 24 | 24 | [2] | ||||||||||
Deferred gain (loss) on hedging transactions (net of tax) | (2) | (2) | |||||||||||
Issuance of common stock under share-based payment plans (in shares) | (0.8) | 0.8 | |||||||||||
Issuance of common stock under share-based payment plans | 18 | $ 34 | (16) | ||||||||||
Purchase of treasury stock (in shares) | 1.3 | (1.3) | |||||||||||
Purchases of treasury stock | (61) | $ (61) | |||||||||||
Stock-based compensation expense | 39 | 39 | |||||||||||
Dividends declared (e) | [4] | (99) | (99) | ||||||||||
Dividends declared (e) | [3],[4] | 0 | |||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 109 | 26.5 | |||||||||||
Ending balance at Dec. 31, 2019 | $ 4,671 | $ 1 | $ (1,130) | $ 4,051 | $ 2,319 | $ (610) | [2] | $ 40 | [3] | ||||
[1] | Additional Paid in Capital (APIC) | ||||||||||||
[2] | Accumulated Other Comprehensive Earnings (Deficit) (“AOCI”) | ||||||||||||
[3] | Noncontrolling Interest (“NCI”) | ||||||||||||
[4] | Dividend declarations of $0.90 per share as of December 31, 2019, $0.85 per share as of December 31, 2018, and $0.81 per share as of December 31, 2017. | ||||||||||||
[5] | Cumulative effect of accounting change relates to our adoption of ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" and ASU 2016-16 "Intra-Entity Transfers of Assets Other Than Inventory (Topic 740)." |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | |||
NET EARNINGS | $ 405 | $ 547 | $ 290 |
Adjustments to reconcile net earnings to cash provided by operating activities: | |||
Depreciation and amortization | 457 | 433 | 371 |
Deferred income taxes | 118 | 141 | 183 |
Provision for pension and other employee benefits liabilities | 45 | 0 | 74 |
Stock-based compensation expense | 39 | 47 | 44 |
Loss on extinguishment of debt | 32 | 0 | 71 |
Other adjustments to reconcile net earnings to cash provided by operating activities | (28) | (49) | 18 |
Changes in receivables, net | 19 | 39 | (66) |
Changes in inventories | 35 | (216) | (57) |
Changes in accounts payable and accrued liabilities | (11) | (89) | 187 |
Changes in other operating assets and liabilities | (10) | 7 | (10) |
Pension fund contributions | (46) | (40) | (72) |
Payments for other employee benefits liabilities | (15) | (19) | (18) |
Other | (3) | 2 | 1 |
Net cash flow provided by operating activities | 1,037 | 803 | 1,016 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | |||
Cash paid for property, plant and equipment | 447 | 537 | 337 |
Derivative settlements | 31 | 64 | 3 |
Proceeds from the sale of assets or affiliates | 22 | 27 | 3 |
Investment in subsidiaries and affiliates, net of cash acquired | 0 | (1,143) | (570) |
Net cash flow used for investing activities | (394) | (1,589) | (901) |
NET CASH FLOW (USED FOR) PROVIDED BY FINANCING ACTIVITIES | |||
Proceeds from senior revolving credit and receivables securitization facilities | 2,172 | 1,954 | 1,133 |
Payments on senior revolving credit and receivables securitization facilities | (2,248) | (1,879) | (1,133) |
Proceeds from term loan borrowing | 0 | 600 | 0 |
Payments on term loan borrowing | (300) | (100) | 0 |
Proceeds from long-term debt | 445 | 389 | 588 |
Payments on long-term debt | (484) | 0 | (351) |
Dividends paid | (95) | (92) | (89) |
Net increase in short-term debt | 4 | 16 | 1 |
Purchases of treasury stock | (61) | (236) | (159) |
Other | (6) | (5) | 13 |
Net cash flow (used for) provided by financing activities | (573) | 647 | 3 |
Effect of exchange rate changes on cash | 24 | (29) | 17 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 94 | (168) | 135 |
Cash, cash equivalents and restricted cash at beginning of period | 85 | 253 | 118 |
Cash, cash equivalents and restricted cash at end of period | 179 | 85 | 253 |
Cash paid during the year for income taxes | 58 | 91 | 67 |
Cash paid during the year for interest | $ 131 | $ 158 | $ 106 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend (dollars per share) | $ 0.90 | $ 0.85 | $ 0.81 |
BUSINESS AND SUMMARY OF SIGNIFI
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Description of Business Owens Corning, a Delaware corporation, is a leading global producer of glass fiber reinforcements and other materials for composite systems and of residential and commercial building materials. The Company operates within three segments: Composites, which includes the Company’s Reinforcements and Downstream businesses; Insulation and Roofing. Through these lines of business, Owens Corning manufactures and sells products worldwide. The Company maintains leading market positions in many of its major product categories. General On February 6, 2020, the Board of Directors declared a quarterly dividend of $0.24 per common share payable on April 3, 2020 to shareholders of record as of March 6, 2020. Basis of Presentation Unless the context requires otherwise, the terms “Owens Corning,” “Company,” “we” and “our” in these notes refer to Owens Corning and its subsidiaries. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States. Principles of Consolidation The Consolidated Financial Statements of the Company include the accounts of majority-owned subsidiaries. Intercompany accounts and transactions are eliminated. Reclassifications Certain reclassifications have been made to the 2018 and 2017 Consolidated Financial Statements and Notes to the Consolidated Financial Statements to conform to the classifications used in 2019. Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Revenue Recognition We recognize revenue as the amount of consideration that we expect to receive in exchange for transferring promised goods or services to customers. We do not adjust the transaction price for the effects of a significant financing component, as the time period between control transfer of goods and services and expected payment is one year or less. At the time of sale, we estimate provisions for different forms of variable consideration (discounts, rebates, returns and other refund liabilities) based on historical experience, current conditions and contractual obligations, as applicable. The estimated transaction price is typically not subject to significant reversals. We adjust these estimates when the most likely amount of consideration we expect to receive changes, although these changes are typically minor. Sales, value-added and other similar taxes that we collect are excluded from revenue. Many of our customer volume commitments are short-term and our performance obligations are generally limited to single purchase orders. Substantially all of our revenue is recognized at a point-in-time when control of goods transfers to the customer. Control transfer typically occurs when goods are shipped from our facilities or at other predetermined control transfer points (for instance, destination terms or consignment arrangements). Revenue Recognition (continued) We typically do not satisfy performance obligations without obtaining an unconditional right to payment from customers and, therefore, do not carry contract asset balances on the Consolidated Balance Sheets. Contract liability balances are recorded separately from receivables on the Consolidated Balance Sheets in either Total current liabilities or Other liabilities, depending on the timing of performance obligation satisfaction. We sell separately-priced warranties that extend certain product and workmanship coverages beyond our standard product warranty, which is described in Note 11. The up-front consideration on extended warranty contracts is deferred and recognized as revenue over time, based on the respective coverage period, ranging from 16 to 20 years. On an annual basis, we expect to recognize approximately $3 million of revenue associated with these extended warranty contracts. Additionally, in certain limited cases, we receive consideration before goods or services are transferred to the customer. These customer down payments and deposits are deferred, and typically recognized as revenue in the following quarter when we satisfy the related performance obligations. As a practical expedient, we recognize incremental costs of obtaining a contract, if any, as an expense when incurred if the amortization period of the asset would have been one year or less. We do not have any costs to obtain or fulfill a contract that are capitalized under Accounting Standard Codification (ASC) 606. Cost of Sales Cost of sales includes material, labor, energy and manufacturing overhead costs, including depreciation and amortization expense associated with the manufacture and distribution of the Company’s products. Provisions for warranties are provided in the same period that the related sales are recorded and are based on historical experience, current conditions and contractual obligations, as applicable. Distribution costs include inbound freight costs; purchasing and receiving costs; inspection costs; warehousing costs; shipping and handling costs, which include costs incurred relating to preparing, packaging, and shipping products to customers; and other costs of the Company’s distribution network. We account for shipping and handling activities that occur after control of the related good transfers as fulfillment activities instead of performance obligations. All shipping and handling costs billed to the customer are included as net sales in the Consolidated Statements of Earnings. Marketing and Advertising Expenses Marketing and advertising expenses are included in Marketing and administrative expenses. These costs include advertising and marketing communications, which are expensed the first time the advertisement takes place. Marketing and advertising expenses for the years ended December 31, 2019, 2018 and 2017 were $117 million, $120 million and $108 million, respectively. Science and Technology Expenses The Company incurs certain expenses related to science and technology. These expenses include salaries, building and equipment costs, utilities, administrative expenses, materials and supplies associated with the improvement and development of the Company’s products and manufacturing processes. These costs are expensed as incurred. Earnings per Share Basic earnings per share are computed using the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect the dilutive effect of common equivalent shares and increased shares that would result from the conversion of equity securities. The effects of anti-dilution are not presented. Cash, Cash Equivalents and Restricted Cash The Company defines cash and cash equivalents as cash and time deposits with maturities of three months or less when purchased. On the Consolidated Statements of Cash Flows, the total of Cash, cash equivalents and restricted cash includes restricted cash of $7 million as of December 31, 2019, 2018 and 2017. Restricted cash primarily represents amounts received from a counterparty related to its performance assurance on an executory contract, and 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. Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is an estimate of the amount of probable credit losses in our existing accounts receivable. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. Inventory Valuation Inventory costs include material, labor, and manufacturing overhead costs, including depreciation and amortization expense associated with the manufacture and distribution of the Company’s products. Inventories are stated at lower of cost or net realizable value and expense estimates are made for excess and obsolete inventories. Cost is determined by the first-in, first-out (“FIFO”) method. Investments in Affiliates The Company accounts for investments in affiliates of 20% to 50% ownership when the Company does not have a controlling financial interest using the equity method under which the Company’s share of earnings and losses of the affiliate is reflected in earnings, and dividends are credited against the investment in affiliate when declared. Investments in affiliates are recorded in Other non-current assets on the Consolidated Balance Sheets and as of December 31, 2019 and 2018, the total value of investments was $51 million. Goodwill and Other Intangible Assets Goodwill assets are not amortized but are tested for impairment on at least an annual basis. In the current year, as part of the annual assessment, the Company used both a qualitative and quantitative approach to determine whether the fair value of a reporting unit was less than its carrying amount. Events and circumstances we consider in performing the qualitative assessment include macro-economic conditions, market and industry conditions, internal cost factors, and the overall financial performance of the reporting units. As part of our quantitative testing process for goodwill, the Company estimates fair values using a discounted cash flow approach from the perspective of a market participant. Significant assumptions used in the discounted cash flow approach are revenue growth rates and earnings before interest and taxes ("EBIT") margins used in estimating discrete period cash flow forecasts of the reporting unit, the discount rate, and the long-term revenue growth rate and EBIT margins used in estimating the terminal business value. The cash flow forecasts of the reporting units are based upon management’s long-term view of our markets and are the forecasts that are used by senior management and the Board of Directors to evaluate operating performance. The discount rate utilized is management’s estimate of what the market’s weighted average cost of capital is for a company with a similar debt rating and stock volatility, as measured by beta. The terminal business value is determined by applying the long-term growth rate to the latest year for which a forecast exists. As part of our goodwill quantitative testing process, we would evaluate whether there are reasonably likely changes to management’s estimates that would have a material impact on the results of the goodwill impairment testing. Other indefinite-lived intangible assets are not amortized but are tested for impairment on at least an annual basis or when determined to have a finite useful life. Substantially all of the indefinite-lived intangible assets are in trademarks and trade names. The Company uses the royalty relief approach to determine whether it is more likely than not that the fair value of these assets is less than its carrying amount. This review is performed annually, or when circumstances arise which indicate there may be impairment. When applying the royalty relief approach, the Company performs a discounted cash flow analysis based on the value derived from owning these trademarks and trade names and being relieved from paying royalty to third parties. Significant assumptions used include projected cash flows, royalty rates, discount rate, and terminal value. The inputs for the goodwill and indefinite-lived intangible tests are considered Level 3 inputs under the fair value hierarchy as they are the Company’s own data, and are unobservable in the marketplace. Indefinite-lived intangible assets purchased through acquisition are generally tested qualitatively for impairment in the first year following the acquisition before transitioning to the standard methodology described herein in subsequent years. Properties and Depreciation Property, plant and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Property, plant and equipment accounts are relieved of the cost and related accumulated depreciation when assets are disposed of or otherwise retired. Precious metals used in our production tooling are included in property, plant and equipment and are depleted as they are consumed during the production process. Depletion typically represents an annual expense of less than 3% of the outstanding value and is recorded in Cost of sales on the Consolidated Statements of Earnings. The range of useful lives for the major components of the Company’s plant and equipment is as follows: Buildings and leasehold improvements 15 – 40 years Machinery and equipment Furnaces 4 – 15 years Information systems 5 – 10 years Equipment 5 – 20 years Expenditures for normal maintenance and repairs are expensed as incurred. Asset Impairments The Company evaluates tangible and intangible long-lived assets for impairment when triggering events have occurred. This requires significant assumptions including projected cash flows, projected income tax rate and terminal business value. These inputs are considered Level 3 inputs under the fair value hierarchy as they are the Company’s own data, and are unobservable in the marketplace. Changes in management intentions, market conditions or operating performance could indicate that impairment charges might be necessary that could be material to the Company’s Consolidated Financial Statements in any given period. Income Taxes The Company recognizes current tax liabilities and assets for the estimated taxes payable or refundable on the tax returns for the current year. Deferred tax balances reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis. Amounts are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. In addition, realization of certain deferred tax assets is dependent upon our ability to generate future taxable income. The Company records a valuation allowance to reduce its deferred tax assets to the amount that it believes is more likely than not to be realized. In addition, the Company estimates tax reserves to cover potential taxing authority claims for income taxes and interest attributable to audits of open tax years. Taxes Collected from Customers and Remitted to Government Authorities and Taxes Paid to Vendors Taxes are assessed by various governmental authorities at different rates on many different types of transactions. The Company charges sales tax or value-added tax (VAT) on sales to customers where applicable, as well as captures and claims back all available VAT that has been paid on purchases. VAT is recorded in separate payable or receivable accounts and does not affect revenue or cost of sales line items in the income statement. VAT receivable is recorded as a percentage of qualifying purchases at the time the vendor invoice is processed. VAT payable is recorded as a percentage of qualifying sales at the time an Owens Corning sale to a customer subject to VAT occurs. Amounts are paid to the taxing authority according to the method and collection prescribed by local regulations. Where applicable, VAT payable is netted against VAT receivable. The Company also pays sales tax to vendors who include a tax, required by government regulations, to the purchase price charged to the Company. Pension and Other Postretirement Benefits Accounting for pensions and other postretirement benefits involves estimating the cost of benefits to be provided well into the future and attributing that cost over the time period each employee works. To accomplish this, extensive use is made of assumptions about investment returns, discount rates, inflation, mortality, turnover and medical costs. Derivative Financial Instruments The Company recognizes all derivative instruments as either assets or liabilities at fair value on the balance sheet. Please refer to Note 5 for further disclosure on derivatives. The Company performs an analysis for effectiveness of its derivatives designated as hedging instruments at the end of each quarter based on the terms of the contracts and the underlying items being hedged. The change in the fair value of cash flow hedges is deferred in Accumulated other comprehensive income (deficit) ("AOCI") and is subsequently recognized in Cost of sales (for commodity and foreign currency cash flow hedges) on the Consolidated Statements of Earnings in order to mirror the location of the hedged items impacting earnings. Cash settlements for commodity and foreign currency hedges qualifying as cash flow hedges are included in Operating activities in the Consolidated Statements of Cash Flows. 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. The changes in fair values of these derivative instruments are recognized in Currency translation adjustment (a component of AOCI), with recognition of the excluded components amortized to Interest expense, net on the Consolidated Statements of Earnings. Cash settlements for derivatives qualifying as net investment hedges are included in Investing activities in the Consolidated Statements of Cash Flows. The Company uses forward currency exchange contracts to manage existing exposures to foreign exchange risk related to assets and liabilities recorded on the Consolidated Balance Sheets. Gains and losses resulting from the changes in fair value of these instruments are recorded in Other expenses, net on the Consolidated Statements of Earnings, and are substantially offset by net revaluation impacts on foreign currency denominated balance sheet exposures (which are also recorded in Other expenses, net). Cash settlements for non-designated derivatives are included in the Consolidated Statements of Cash Flows in the category that is consistent with the nature of the derivative instrument, which is generally the same category as the underlying item being hedged. Fair Value Measurements The carrying value of cash and cash equivalents, accounts receivable and short-term debt approximate fair value because of the short-term maturity of the instruments. The Company uses widely accepted valuation tools to determine fair value of our derivatives, such as discounting cash flows to calculate a present value for the derivatives. 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 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. Please refer to Notes 5 and 13 for additional fair value disclosure of derivative financial instruments and long-term debt, respectively. Foreign Currency The functional currency of the Company’s subsidiaries is generally the applicable local currency. Assets and liabilities of foreign subsidiaries are translated into United States dollars at the period-end rate of exchange, and their Statements of Earnings and Statements of Cash Flows are converted on an ongoing basis at the monthly average rate. The resulting translation adjustment is included in AOCI in the Consolidated Balance Sheets and Consolidated Statements of Stockholders’ Equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recorded in Other expenses, net in the Consolidated Statements of Earnings as incurred. As discussed in the Derivative Financial Instruments section above, the Company uses non-designated foreign currency derivative financial instruments to mitigate this risk. The Company recorded foreign currency transactional gains (net of associated derivative activity) of $12 million and $7 million during the years ended December 31, 2019 and December 31, 2018, respectively, and foreign currency transactional losses (net of associated derivative activity) of $4 million during the year ended December 31, 2017. Please refer to Note 5 for additional disclosures related to non-designated derivatives. Accounting Pronouncements The following table summarizes recent accounting standard updates (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)," as amended by ASU 2018-19, 2019-04, 2019-05, 2019-10 and 2019-11 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 do not believe the adoption of this guidance will have a material effect on our consolidated financial statements. Our current accounts receivable policy (as described in Note 1 of the Consolidated Financial Statements) uses historical and forward-looking information to estimate the amount of expected credit losses in our existing accounts receivable. We have determined that our current systems, policies and procedures comply with the requirements of this standard. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
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 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. Twelve Months Ended December 31, 2019 2018 2017 Reportable Segments Composites $ 2,059 $ 2,041 $ 2,068 Insulation 2,668 2,720 2,001 Roofing 2,634 2,492 2,553 Total reportable segments 7,361 7,253 6,622 Corporate eliminations (201) (196) (238) NET SALES $ 7,160 $ 7,057 $ 6,384 External Customer Sales by Geographic Region United States $ 4,776 $ 4,647 $ 4,495 Europe 1,209 1,209 661 Asia Pacific 664 656 675 Canada and other 511 545 553 NET SALES $ 7,160 $ 7,057 $ 6,384 EARNINGS BEFORE INTEREST AND TAXES Earnings before interest and taxes (EBIT) by segment consists 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): Twelve Months Ended December 31, 2019 2018 2017 Reportable Segments Composites $ 247 $ 251 $ 291 Insulation 230 290 177 Roofing 455 434 535 Total reportable segments 932 975 1,003 Restructuring costs (28) (22) (48) Acquisition-related costs — (16) (15) Recognition of acquisition inventory fair value step-up — (2) (5) Litigation settlement gain, net of legal fees — — 29 Pension settlement losses (43) — (64) Environmental liability charges (4) — (15) General corporate expense and other (104) (114) (148) Total Corporate, other and eliminations (179) (154) (266) EBIT $ 753 $ 821 $ 737 TOTAL ASSETS AND PROPERTY, PLANT AND EQUIPMENT The following table summarizes total assets by segment and property, plant and equipment by geographic region (in millions): December 31, TOTAL ASSETS 2019 2018 Reportable Segments Composites $ 2,470 $ 2,480 Insulation 4,975 4,907 Roofing 1,784 1,750 Total reportable segments 9,229 9,137 Cash and cash equivalents 172 78 Noncurrent deferred income taxes 46 43 Investments in affiliates 51 51 Assets held for sale 1 3 Corporate property, plant and equipment, other assets and eliminations 507 459 CONSOLIDATED TOTAL ASSETS $ 10,006 $ 9,771 December 31, PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC REGION 2019 2018 United States $ 2,204 $ 2,166 Europe 762 779 Asia Pacific 601 567 Canada and other 288 299 TOTAL PROPERTY, PLANT AND EQUIPMENT $ 3,855 $ 3,811 PROVISION FOR DEPRECIATION AND AMORTIZATION The following table summarizes the provision for depreciation and amortization by segment (in millions): Twelve Months Ended December 31, 2019 2018 2017 Reportable Segments Composites $ 154 $ 147 $ 144 Insulation 194 186 124 Roofing 54 51 50 Total reportable segments 402 384 318 General corporate depreciation and amortization (a) 55 49 53 CONSOLIDATED PROVISION FOR DEPRECIATION AND AMORTIZATION $ 457 $ 433 $ 371 (a) In 2019, 2018 and 2017, General corporate depreciation and amortization expense included $9 million, $10 million and $17 million, respectively, of accelerated depreciation related to restructuring actions further explained in Note 12 to the Consolidated Financial Statements. ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT The following table summarizes additions to property, plant and equipment on an accrual basis by segment (in millions): Twelve Months Ended December 31, 2019 2018 2017 Reportable Segments Composites $ 123 $ 154 $ 148 Insulation 210 240 151 Roofing 56 91 66 Total reportable segments 389 485 365 General corporate additions 62 57 37 CONSOLIDATED ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT $ 451 $ 542 $ 402 |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | REVENUE ASU 2014-09 Adoption On January 1, 2018, we adopted ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)" and the related amendments (collectively, "ASC 606"). We used the modified retrospective method of adoption, in which the cumulative effect of initially applying the new standard to existing contracts (as of January 1, 2018) was recorded as a $2 million decrease to the January 1, 2018 opening balance of Accumulated earnings. The effect of this adoption was immaterial to our Consolidated Financial Statements, and we do not expect a material effect to our Consolidated Financial Statements on an ongoing basis. Under the modified-retrospective method of adoption, the comparative information in the Consolidated Financial Statements has not been revised and continues to be reported under the previously applicable revenue accounting guidance ("ASC 605"). If ASC 605 had been applied to the year 2018, the impact would have been immaterial to our Consolidated Financial Statements. Please refer to Significant Policies in Note 1 for other disclosures required by ASC 606. Disaggregated Revenue The following tables show a disaggregation of Net sales (in millions): Twelve Months Ended December 31, 2019 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 269 $ 927 $ 2,375 $ (195) $ 3,376 U.S. commercial and industrial 614 643 143 — 1,400 Europe 572 625 13 (1) 1,209 Asia-Pacific 475 176 13 — 664 Rest of world 129 297 90 (5) 511 NET SALES $ 2,059 $ 2,668 $ 2,634 $ (201) $ 7,160 Twelve Months Ended December 31, 2018 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 263 $ 990 $ 2,199 $ (177) $ 3,275 U.S. commercial and industrial 598 625 161 (12) 1,372 Europe 590 605 14 — 1,209 Asia-Pacific 464 178 15 (1) 656 Rest of world 126 322 103 (6) 545 NET SALES $ 2,041 $ 2,720 $ 2,492 $ (196) $ 7,057 Please refer to Note 2 and Item 1 of our 2019 Form 10-K for further information on our three reportable segments (Composites, Insulation and Roofing). Our contracts with customers are broadly similar in nature throughout our reportable segments, but the amount, timing and uncertainty of revenue and cash flows may vary in each reportable segment due to geographic and end-market economic factors. In the United States, sales are primarily related to the residential housing market and commercial and industrial applications. Residential market demand is driven by housing starts and repair and remodeling activity (influenced by existing home sales, seasonal home improvement and damage from major storms). Significant portions of our residential products across our three reportable segments are used interchangeably in both new construction and repair and remodeling, and our customers typically distribute (or use) the products for both applications. U.S. commercial and industrial revenues are largely driven by U.S. industrial production growth, commercial construction activity and overall economic conditions in the U.S. Outside of the United States (Europe, Asia-Pacific and Rest of world), sales are primarily related to commercial and industrial applications and, to a lesser extent, residential applications in certain countries. Throughout the international regions, demand is primarily driven by industrial production growth, commercial construction activity and overall economic conditions in each respective geographical region. Contract Balances |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of the following (in millions): December 31, 2019 2018 Finished goods $ 715 $ 730 Materials and supplies 318 342 Total inventories $ 1,033 $ 1,072 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 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 December 31, 2019 and 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 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 December 31, 2019 December 31, 2018 Derivative assets designated as hedging instruments: Net investment hedges: Cross currency swaps Other current assets $ 12 $ 9 Cross currency swaps Other non-current assets $ 1 $ — Derivative liabilities designated as hedging instruments: Net investment hedges: Cross-currency swaps Other liabilities $ 4 $ 17 Cash flow hedges: Natural gas forward swaps Current liabilities $ 3 $ 1 Derivative assets not designated as hedging instruments: Foreign exchange forward contracts Other current assets $ 9 $ 1 Derivative liabilities not designated as hedging instruments: Foreign exchange forward contracts Current 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): Twelve Months Ended Location 2019 2018 2017 Derivative activity designated as hedging instruments: Natural gas cash flow hedges: Amount of loss/(gain) reclassified from AOCI into earnings Cost of sales $ 4 $ (2) $ (1) Amount of loss recognized in earnings (ineffective portion) Other expenses, net $ — $ — $ 2 Cross-currency swap net investment hedges: Amount of gain recognized in earnings on derivative amounts excluded from effectiveness testing Interest expense, net $ (13) $ (12) $ — Derivative activity not designated as hedging instruments: Foreign currency: Amount of (gain)/loss recognized in earnings (a) Other expenses, net $ (35) $ (55) $ 5 (a) (Gains)/losses 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 Twelve Months Ended December 31, Hedging Type Derivative Financial Instrument 2019 2018 Net investment hedge Cross-currency swaps $ (18) $ (18) Cash flow hedge Natural gas forward swaps $ 2 $ — 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 December 31, 2019, the notional amount of these derivative financial instruments was $516 million related to the U.S Dollar and European Euro. 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 December 31, 2019, the notional amounts of these natural gas forward swaps was 2 MMBTu (or MMBTu equivalent based on U.S. and European indices), which is in line with the notional amounts at December 31, 2018. 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 December 31, 2019, the Company had notional amounts of $704 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, and South Korean Won. In addition, the Company had notional amounts of $82 million for non-designated derivative financial instruments related to foreign currency exposures in European Euro primarily related to the Russian Ruble. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill The Company tests goodwill and indefinite-lived intangible assets for impairment as of October 1 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. 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 — (16) (1) (17) Balance at December 31, 2019 $ 57 $ 1,479 $ 396 $ 1,932 The annual tests performed in 2019 resulted in no impairment of goodwill or indefinite-lived intangible assets. Testing did indicate that the business enterprise value for the Insulation reporting unit exceeded its carrying value by approximately 10%. There is uncertainty surrounding the macroeconomic factors that impact this reporting unit and a sustained downturn in these factors or a change in the long-term revenue growth or profitability for this reporting unit could increase the likelihood of a future impairment. Other Intangible Assets The Company amortizes the cost of other intangible assets over their estimated useful lives which, individually, range up to 45 years. The Company's future cash flows are not materially impacted by its ability to extend or renew agreements related to its amortizable intangible assets. The Other category below primarily includes franchise agreements and quarry and emissions rights. Other intangible assets consist of the following (in millions): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Trademarks $ 1,139 $ — $ 1,139 $ 1,144 $ — $ 1,144 Customer relationships 550 (167) 383 554 (138) 416 Technology 319 (152) 167 321 (134) 187 Other 67 (35) 32 60 (28) 32 Total other intangible assets $ 2,075 $ (354) $ 1,721 $ 2,079 $ (300) $ 1,779 Amortization expense for the years ended December 31, 2019, 2018, and 2017 was $54 million, $49 million, and $31 million, respectively. The estimated amortization expense for intangible assets for the next five years is as follows (in millions): Period Amortization 2020 $ 48 2021 $ 48 2022 $ 45 2023 $ 42 2024 $ 39 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following (in millions): December 31, 2019 December 31, 2018 Land $ 221 $ 224 Buildings and leasehold improvements 1,186 1,091 Machinery and equipment 4,978 4,628 Construction in progress 310 443 6,695 6,386 Accumulated depreciation (2,840) (2,575) Property, plant and equipment, net $ 3,855 $ 3,811 Machinery and equipment includes certain precious metals used in our production tooling, which comprise approximately 10% and 11% of total machinery and equipment as of December 31, 2019 and December 31, 2018, respectively. For the years ended December 31, 2019, 2018 and 2017, depreciation expense was $403 million, $384 million and $340 million, respectively, which includes depletion expense related to precious metals used in our production tooling. In 2019, 2018 and 2017, depreciation expense included $9 million, $10 million and $17 million, respectively, of accelerated depreciation related to restructuring actions further explained in Note 12 to the Consolidated Financial Statements. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | Paroc AcquisitionOn 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 acquisition. During 2019, the Consolidated Statements of Earnings included $38 million in Net Sales attributable to the acquisition (net sales from January 1, 2019 through February 4, 2019 that were 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 | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
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 to existing leases was $237 million to record the operating lease right-of-use assets and the related liabilities as of January 1, 2019. 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 classifications. As of December 31, 2018, leases classified as capital leases under ASC 840 of $16 million were included in Property, plant and equipment, net. Finance lease right-of-use assets, 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 December 31, 2019, liabilities associated with capital leases and finance leases are included in Long-term debt and 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 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 203 Finance lease assets Other non-current assets 21 Total lease assets $ 224 Liabilities Current Operating Current liabilities $ 66 Finance Current liabilities 7 Non-Current Operating Non-current operating lease liabilities 138 Finance Long-term debt, net of current portion 19 Total lease liabilities $ 230 Lease Costs For the year ended December 31, 2019, the Company recorded $81 million of operating lease expense and $10 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 year ended December 31, 2019. We added $47 million of operating lease liabilities as a result of obtaining operating lease right-of-use assets in the year ended December 31, 2019. Other Information The tables below present supplemental information related to leases as of December 31, 2019: Weighted-average remaining lease term (years) December 31, 2019 Operating leases 4.0 Finance leases 3.9 Weighted-average discount rate December 31, 2019 Operating leases 3.30 % Finance leases 6.29 % Maturities of Lease Liabilities 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 December 31, 2019 (in millions): Period Operating Leases Finance Leases 2020 $ 73 $ 8 2021 60 8 2022 39 6 2023 22 4 2024 11 2 2025 and beyond 17 1 Total minimum lease payments 222 29 Less: implied interest 18 3 Present value of future minimum lease payments 204 26 Less: current lease obligations 66 7 Long-term lease obligations $ 138 $ 19 As of December 31, 2019, we have an immaterial amount of leases that have not yet commenced. Information Presented in 2018 Form 10-K under ASC 840 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 as of 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. |
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 to existing leases was $237 million to record the operating lease right-of-use assets and the related liabilities as of January 1, 2019. 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 classifications. As of December 31, 2018, leases classified as capital leases under ASC 840 of $16 million were included in Property, plant and equipment, net. Finance lease right-of-use assets, 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 December 31, 2019, liabilities associated with capital leases and finance leases are included in Long-term debt and 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 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 203 Finance lease assets Other non-current assets 21 Total lease assets $ 224 Liabilities Current Operating Current liabilities $ 66 Finance Current liabilities 7 Non-Current Operating Non-current operating lease liabilities 138 Finance Long-term debt, net of current portion 19 Total lease liabilities $ 230 Lease Costs For the year ended December 31, 2019, the Company recorded $81 million of operating lease expense and $10 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 year ended December 31, 2019. We added $47 million of operating lease liabilities as a result of obtaining operating lease right-of-use assets in the year ended December 31, 2019. Other Information The tables below present supplemental information related to leases as of December 31, 2019: Weighted-average remaining lease term (years) December 31, 2019 Operating leases 4.0 Finance leases 3.9 Weighted-average discount rate December 31, 2019 Operating leases 3.30 % Finance leases 6.29 % Maturities of Lease Liabilities 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 December 31, 2019 (in millions): Period Operating Leases Finance Leases 2020 $ 73 $ 8 2021 60 8 2022 39 6 2023 22 4 2024 11 2 2025 and beyond 17 1 Total minimum lease payments 222 29 Less: implied interest 18 3 Present value of future minimum lease payments 204 26 Less: current lease obligations 66 7 Long-term lease obligations $ 138 $ 19 As of December 31, 2019, we have an immaterial amount of leases that have not yet commenced. Information Presented in 2018 Form 10-K under ASC 840 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 as of 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. |
TOTAL CURRENT LIABILITIES
TOTAL CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
TOTAL CURRENT LIABILITIES | TOTAL CURRENT LIABILITIES Current liabilities consist of the following current portions of these liabilities (in millions): December 31, 2019 2018 Accounts payable $ 815 $ 851 Payroll, vacation pay and incentive compensation 172 157 Current operating lease liabilities 66 — Other 276 270 Total $ 1,329 $ 1,278 |
WARRANTIES
WARRANTIES | 12 Months Ended |
Dec. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
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 for information about our separately-priced extended warranty contracts. A reconciliation of the warranty liability is as follows (in millions): December 31, 2019 2018 Beginning balance $ 60 $ 55 Amounts accrued for current year 21 20 Settlements of warranty claims (17) (15) Ending balance $ 64 $ 60 |
RESTRUCTURING AND ACQUISITION-R
RESTRUCTURING AND ACQUISITION-RELATED COSTS | 12 Months Ended |
Dec. 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 Insulation Network Optimization Restructuring In October 2019, the Company took actions to primarily restructure certain U.S. insulation operations and to reduce the cost structure throughout the Insulation network. Investments in productivity and process technologies enabled the Company to optimize its network and improve its cost position. During 2019, the Company recorded $24 million of charges, comprised of $8 million of severance, $9 million of accelerated depreciation and $7 million of other exit costs. The Company expects to recognize approximately $6 million of incremental costs in 2020. Acquisition-Related Restructuring Following the acquisitions of Paroc and Pittsburgh Corning into the Company's Insulation segment, the Company took actions to realize expected synergies from the newly acquired operations. During 2019, the Company recorded $9 million of charges related to these actions, comprised of $6 million of severance and $3 million of other exit costs. The Company expects there will be minimal incremental costs in 2020. 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 (Doudian, People's 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 2019, the Company recorded $3 million of other exit costs and $1 million of severance charges, offset by a $3 million non-cash gain related to a lease termination in Mexico City, Mexico, associated with these actions. The Company expects there will be no incremental costs in 2020. 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 in our Corporate, Other and Eliminations category (in millions): Twelve Months Ended December 31, Type of Cost Location 2019 2018 2017 Accelerated depreciation Cost of sales $ 9 $ 10 $ 17 Other exit costs Cost of sales 6 7 3 Severance Other expenses, net 13 4 27 Other exit (gains)/costs (a) Other expenses, net (1) 1 1 Other exit costs Non-operating expense (income) 1 — — Total restructuring costs $ 28 $ 22 $ 48 (a) Other exit (gains)/costs in 2019 includes a $6 million gain related to the sale of an idle residential fiberglass insulation facility in Canada resulting from the 2016 Cost Reductions Actions. Please refer to Note 11 of our 2016 Form 10-K for more information about these restructuring actions. Summary of Unpaid Liabilities The following table summarizes the status of the unpaid liabilities from the Company’s restructuring activities (in millions): Insulation Network Optimization Restructuring 2017 Cost Reduction Actions Acquisition-Related Restructuring Balance at December 31, 2018 $ — $ 10 $ 7 Restructuring costs 24 1 9 Payments (10) (12) (5) Non-cash items (9) 1 — Balance at December 31, 2019 $ 5 $ — $ 11 Cumulative charges incurred $ 24 $ 49 $ 29 As of December 31, 2019, the remaining liability balance is comprised of $16 million of severance, inclusive of $4 of non-current severance and $12 million of severance the Company expects to pay over the next twelve months. |
DEBT
DEBT | 12 Months Ended |
Dec. 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): December 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 $ 183 104 % $ 598 99 % 4.20% senior notes, net of discount and financing fees, due 2024 395 106 % 393 99 % 3.40% senior notes, net of discount and financing fees, due 2026 396 101 % 396 90 % 3.95% senior notes, net of discount and financing fees, due 2029 445 104 % — — % 7.00% senior notes, net of discount and financing fees, due 2036 367 126 % 400 112 % 4.30% senior notes, net of discount and financing fees, due 2047 588 95 % 588 76 % 4.40% senior notes, net of discount and financing fees, due 2048 390 97 % 389 77 % Accounts receivable securitization facility, maturing in 2022 (a) — — % 75 100 % Various finance leases, due through 2032 (a) (b) 26 100 % 24 100 % Term loan borrowing, maturing in 2021 (a) 200 100 % 500 100 % Other 3 n/a 8 n/a Total long-term debt 2,993 n/a 3,371 n/a Less – current portion (a) 7 100 % 9 100 % Long-term debt, net of current portion $ 2,986 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 $450 million of 2029 senior notes on August 12, 2019 subject to $5 million of discounts and issuance costs. Interest on the notes is payable semiannually in arrears on February 15 and August 15 each year, beginning on February 15, 2020. The proceeds from these notes were used to repay $416 million of our 2022 senior notes and $34 million of our 2036 senior notes. The Company recognized approximately $32 million of loss on extinguishment of debt in the third quarter of 2019 associated with these actions. 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 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. In May 2018, the Company entered into a new agreement covering our Senior Revolving Credit Facility. This new agreement, among other things, removed all subsidiaries of the Company as guarantors under our Senior Revolving Credit Facility, unless certain conditions precedent are met that do not exist at this time, and had the effect of removing the guarantees of such subsidiaries under our Senior Notes. In addition, we elected to amend our Registration Statement on Form S-3 to eliminate the guarantees of our Senior Notes as registered securities. 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 December 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 was previously 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 December 31, 2018. As a result of the repurchase of a portion of these notes in a tender offer in the third quarter of 2019, the remaining unamortized portion of the swaps was recognized on the Consolidated Statements of Earnings as a $4 million reduction to the loss on extinguishment of debt. 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 December 31, 2019. Please refer to the Credit Facility Utilization paragraph below for liquidity information as of December 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 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 Term Loan requires partial quarterly principal repayments, all of which have been paid as of December 31, 2019, and full repayment by February 2021. As of December 31, 2019, the Term Loan had $200 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 December 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 December 31, 2019. Please refer to the Credit Facility Utilization section below for liquidity information as of December 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 December 31, 2019 Senior Revolving Credit Facility Receivables Securitization Facility Facility size $ 800 $ 280 Collateral capacity limitation on availability n/a — Outstanding borrowings — — Outstanding letters of credit 4 2 Availability on facility $ 796 $ 278 Debt Maturities The aggregate maturities for all outstanding long-term debt borrowings for each of the five years following December 31, 2019 and thereafter are presented in the table below (in millions). The maturities below are the aggregate par amounts of the outstanding senior notes, borrowings from the Term Loan and finance lease liabilities: Period Maturities 2020 $ 8 2021 208 2022 190 2023 4 2024 401 2025 and beyond 2,227 Total $ 3,038 Short-Term Debt At December 31, 2019 and December 31, 2018, short-term borrowings were $20 million and $16 million, respectively. The short-term borrowings for both periods consisted of various operating lines of credit and working capital facilities. Certain of these borrowings are collateralized by receivables, inventories or property. The borrowing facilities are typically for one |
PENSION PLANS
PENSION PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
PENSION PLANS | 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 U.S. plan, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average remaining life expectancy of inactive participants. In all of 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. During 2019 and 2017, the Company completed balance sheet risk mitigation actions related to certain U.S. and non-U.S. pension plans. These actions included the purchase of non-participating annuity contracts from insurance companies and the payment of lump sums to retirees, which resulted in the settlement of liabilities to affected participants. As a result of these transactions, the Company recognized pension settlement losses of $43 million during the twelve months ended December 31, 2019 and $64 million during the twelve months ended December 31, 2017. These losses are included in Non-operating expense (income) on the Consolidated Statements of Earnings in our Corporate, Other and Eliminations category. These transactions did not have a material effect on the plans' funded status. The following tables provide a reconciliation of the change in the projected benefit obligation, the change in plan assets and the net amount recognized in the Consolidated Balance Sheets (in millions): December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Change in Projected Benefit Obligation Benefit obligation at beginning of period $ 891 $ 427 $ 1,318 $ 993 $ 457 $ 1,450 Service cost 5 5 10 6 6 12 Interest cost 34 13 47 34 13 47 Actuarial loss (gain) 85 42 127 (67) (18) (85) Currency loss (gain) — 13 13 — (26) (26) Benefits paid (45) (18) (63) (75) (17) (92) Settlements/curtailments (104) (7) (111) — (6) (6) Acquisition — — — — 11 11 Other — — — — 7 7 Benefit obligation at end of period $ 866 $ 475 $ 1,341 $ 891 $ 427 $ 1,318 December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Change in Plan Assets Fair value of assets at beginning of period $ 727 $ 328 $ 1,055 $ 836 $ 364 $ 1,200 Actual return on plan assets 130 50 180 (59) (8) (67) Currency gain (loss) — 11 11 — (20) (20) Company contributions 25 21 46 25 15 40 Benefits paid (45) (18) (63) (75) (17) (92) Settlements/curtailments (104) (5) (109) — (6) (6) Other — (1) (1) — — — Fair value of assets at end of period $ 733 $ 386 $ 1,119 $ 727 $ 328 $ 1,055 Funded status $ (133) $ (89) $ (222) $ (164) $ (99) $ (263) December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Amounts Recognized in the Consolidated Balance Sheets Prepaid pension cost $ — $ 11 $ 11 $ — $ 7 $ 7 Accrued pension cost – current — (2) (2) — (2) (2) Accrued pension cost – non-current (133) (98) (231) (164) (104) (268) Net amount recognized $ (133) $ (89) $ (222) $ (164) $ (99) $ (263) Amounts Recorded in AOCI Net actuarial loss $ (345) $ (97) $ (442) $ (392) $ (92) $ (484) The following table presents information about the projected benefit obligation, accumulated benefit obligation (ABO) and plan assets of the Company’s pension plans (in millions): December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Plans with ABO in excess of fair value of plan assets: Projected benefit obligation $ 866 $ 300 $ 1,166 $ 891 $ 269 $ 1,160 Accumulated benefit obligation $ 866 $ 295 $ 1,161 $ 891 $ 265 $ 1,156 Fair value of plan assets $ 733 $ 205 $ 938 $ 727 $ 169 $ 896 Plans with fair value of assets in excess of ABO: Projected benefit obligation $ — $ 175 $ 175 $ — $ 158 $ 158 Accumulated benefit obligation $ — $ 159 $ 159 $ — $ 140 $ 140 Fair value of plan assets $ — $ 181 $ 181 $ — $ 159 $ 159 Summary of all plans: Total projected benefit obligation $ 866 $ 475 $ 1,341 $ 891 $ 427 $ 1,318 Total accumulated benefit obligation $ 866 $ 454 $ 1,320 $ 891 $ 405 $ 1,296 Total fair value of plan assets $ 733 $ 386 $ 1,119 $ 727 $ 328 $ 1,055 Weighted-Average Assumptions Used to Determine Benefit Obligation The following table presents weighted average assumptions used to determine benefit obligations at the measurement dates: December 31, 2019 2018 United States Plans Discount rate 3.30 % 4.25 % Expected return on plan assets 6.50 % 6.75 % Non-United States Plans Discount rate 2.24 % 3.04 % Expected return on plan assets 4.66 % 4.91 % Rate of compensation increase 3.99 % 4.14 % Components of Net Periodic Pension Cost The following table presents the components of net periodic pension cost (in millions): Twelve Months Ended December 31, 2019 2018 2017 Service cost $ 10 $ 12 $ 12 Interest cost 47 47 55 Expected return on plan assets (68) (73) (79) Amortization of actuarial loss 15 15 18 Settlement/curtailment 44 — 64 Net periodic pension cost $ 48 $ 1 $ 70 Weighted-Average Assumptions Used to Determine Net Periodic Pension Cost The following table presents weighted-average assumptions used to determine net periodic pension costs for the periods noted: Twelve Months Ended December 31, 2019 2018 2017 United States Plans Discount rate 4.25 % 3.55 % 3.95 % Expected return on plan assets 6.75 % 6.75 % 6.75 % Rate of compensation increase N/A (a) N/A (a) N/A (a) Non-United States Plans Discount rate 3.04 % 2.88 % 3.14 % Expected return on plan assets 4.91 % 5.22 % 5.92 % Rate of compensation increase 4.14 % 4.29 % 4.25 % (a) Not applicable due to changes in plan made on August 1, 2009 that were effective beginning January 1, 2010. The expected return on plan assets assumption is derived by taking into consideration the target plan asset allocation, historical rates of return on those assets, projected future asset class returns and net outperformance of the market by active investment managers. An asset return model is used to develop an expected range of returns on plan investments over a 20 year period, with the expected rate of return selected from a best estimate range within the total range of projected results. The result is then rounded down to the nearest 25 basis points. Accumulated Other Comprehensive Earnings (Deficit) Of the $(442) million balance in AOCI, $15 million is expected to be recognized as net periodic pension cost during 2020. Items Measured at Fair Value The Company classifies and discloses pension plan assets in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Plan Assets The tables in this section show pension plan asset fair values and fair value leveling information. The assets are categorized into one of the three levels of the fair value hierarchy or are not subject to leveling, in the case of investments that are valued using the net asset value per share (or its equivalent) practical expedient ("NAV"). The following table summarizes the fair values and applicable fair value hierarchy levels of United States pension plan assets (in millions): December 31, 2019 Asset Category Level 1 Level 2 Level 3 Total Equities: Domestic $ 57 $ — $ — $ 57 International 55 — — 55 Fixed income and cash equivalents: Corporate bonds 28 214 — 242 Government debt — 85 — 85 Real estate investment trusts 22 — — 22 Total United States plan assets subject to leveling $ 162 $ 299 $ — 461 Plan assets measured at NAV: Equities 130 Real assets 62 Fixed income and cash equivalents 33 Absolute return strategies 47 Total United States plan assets $ 733 December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Equities: Domestic $ 50 $ — $ — $ 50 International 52 — — 52 Fixed income and cash equivalents: Corporate bonds — 236 — 236 Government debt — 91 — 91 Real estate investment trusts 24 — — 24 Total United States plan assets subject to leveling $ 126 $ 327 $ — 453 Plan assets measured at NAV: Equities 123 Real assets 54 Fixed income and cash equivalents 53 Absolute return strategies 44 Total United States plan assets $ 727 The following table summarizes the fair values and applicable fair value hierarchy levels of non-United States pension plan assets (in millions): December 31, 2019 Asset Category Level 1 Level 2 Level 3 Total Equities $ — $ 4 $ — $ 4 Fixed income and cash equivalents: Cash and cash equivalents — 65 — 65 Corporate bonds — 13 — 13 Total non-United States plan assets subject to leveling $ — $ 82 $ — 82 Plan assets measured at NAV: Equities 71 Fixed income and cash equivalents 123 Absolute return strategies and other 110 Total non-United States plan assets $ 386 December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Equities $ — $ 4 $ — $ 4 Fixed income and cash equivalents: Cash and cash equivalents — 62 — 62 Corporate bonds — 12 — 12 Total non-United States plan assets subject to leveling $ — $ 78 $ — 78 Plan assets measured at NAV: Equities 41 Fixed income and cash equivalents 109 Absolute return strategies 100 Total non-United States plan assets $ 328 Investment Strategy The current targeted asset allocation for the United States pension plan is to have 33% of assets invested in equities, 3% in real estate, 8% in real assets, 50% in intermediate and long-term fixed income securities and 6% in absolute return strategies. Assets are rebalanced quarterly to conform to policy tolerances. The Company actively evaluates the reasonableness of its asset mix given changes in the projected benefit obligation and market dynamics. Our investment policy and asset mix for the non-United States pension plans varies by location and is based on projected benefit obligation and market dynamics. Estimated Future Benefit Payments The following table shows estimated future benefit payments from the Company’s pension plans (in millions): Year Estimated Benefit Payments 2020 $ 76 2021 $ 75 2022 $ 75 2023 $ 75 2024 $ 75 2025-2029 $ 390 Contributions Owens Corning expects to contribute $25 million in cash to the United States pension plan during 2020 and another $25 million to non-United States plans. Actual contributions to the plans may change as a result of a variety of factors, including changes in laws that impact funding requirements. Defined Contribution Plans The Company sponsors two defined contribution plans which are available to substantially all United States employees. The Company matches a percentage of employee contributions up to a maximum level and contributes up to 2% of an employee’s wages regardless of employee contributions. The Company recognized expense of $48 million, $48 million and $42 million during the years ended December 31, 2019, 2018 and 2017, respectively, related to these plans. The Company maintains health care 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. Salaried employees hired on or before December 31, 2005 become eligible to participate in the United States health care plans upon retirement if they have accumulated 10 years of service after age 45, 48 or 50, depending on the category of employee. For employees hired after December 31, 2005, the Company does not provide subsidized retiree health care. Some of the plans are contributory, with some retiree contributions adjusted annually. The Company has reserved the right to change or eliminate these benefit plans subject to the terms of collective bargaining agreements. The following table provides a reconciliation of the change in the projected benefit obligation and the net amount recognized in the Consolidated Balance Sheets for the years ended December 31, 2019 and 2018 (in millions): December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Change in Projected Benefit Obligation Benefit obligation at beginning of period $ 183 $ 12 $ 195 $ 216 $ 14 $ 230 Service cost 1 — 1 1 — 1 Interest cost 7 1 8 8 — 8 Actuarial (gain)/loss (7) 2 (5) (25) — (25) Currency loss — — — — (1) (1) Plan amendments (1) — (1) (2) — (2) Benefits paid (14) (1) (15) (15) (1) (16) Benefit obligation at end of period $ 169 $ 14 $ 183 $ 183 $ 12 $ 195 Funded status $ (169) $ (14) $ (183) $ (183) $ (12) $ (195) Amounts Recognized in the Consolidated Balance Sheets Accrued benefit obligation – current $ (15) $ (1) $ (16) $ (17) $ — $ (17) Accrued benefit obligation – non-current (154) (13) (167) (166) (12) $ (178) Net amount recognized $ (169) $ (14) $ (183) $ (183) $ (12) $ (195) Amounts Recorded in AOCI Net actuarial gain $ 48 $ 3 $ 51 $ 49 $ 5 $ 54 Net prior service credit 6 — 6 9 — 9 Net amount recognized $ 54 $ 3 $ 57 $ 58 $ 5 $ 63 Weighted-Average Assumptions Used to Determine Benefit Obligations The following table presents the discount rates used to determine the benefit obligations: December 31, 2019 2018 United States plans 3.10 % 4.15 % Non-United States plans 3.84 % 4.59 % Components of Net Periodic Postretirement Benefit Cost The following table presents the components of net periodic postretirement benefit cost (in millions): Twelve Months Ended December 31, 2019 2018 2017 Service cost $ 1 $ 1 $ 2 Interest cost 8 8 9 Amortization of prior service credit (4) (4) (4) Amortization of actuarial gain (8) (6) (3) Net periodic postretirement benefit (income)/cost $ (3) $ (1) $ 4 Weighted-Average Assumptions Used to Determine Net Periodic Postretirement Benefit Cost The following table presents the discount rates used to determine net periodic postretirement benefit cost: Twelve Months Ended December 31, 2019 2018 2017 United States plans 4.15 % 3.45 % 3.80 % Non-United States plans 4.59 % 4.56 % 6.78 % The following table presents health care cost trend rates used to determine net periodic postretirement benefit cost, as well as information regarding the ultimate rate and the year in which the ultimate rate is reached: Twelve Months Ended December 31, 2019 2018 2017 United States plans: Initial rate at end of year 6.50 % 6.75 % 6.56 % Ultimate rate 5.00 % 5.00 % 5.00 % Year in which ultimate rate is reached 2026 2026 2025 Non-United States plans: Initial rate at end of year 5.45 % 5.40 % 5.73 % Ultimate rate 5.45 % 5.40 % 5.49 % Year in which ultimate rate is reached 2019 2019 2019 The health care cost trend rate assumption can have an effect on the amounts reported. To illustrate, a one-percentage point change in the December 31, 2019 assumed health care cost trend rate would have the following effects (in millions): 1-Percentage Point Increase Decrease Increase (decrease) in total service cost and interest cost components of net periodic postretirement benefit cost $ — $ — Increase (decrease) of accumulated postretirement benefit obligation $ 4 $ (3) Accumulated Other Comprehensive Earnings (Deficit) Approximately $11 million of the $57 million balance in AOCI is expected to be recognized as net periodic postretirement benefit during 2020. Estimated Future Benefit Payments The following table shows estimated future benefit payments from the Company’s postretirement benefit plans (in millions): Year Estimated Benefit Payments 2020 $ 16 2021 $ 15 2022 $ 15 2023 $ 14 2024 $ 14 2025-2029 $ 60 Postemployment Benefits The Company may also provide benefits to former or inactive employees after employment but before retirement under certain conditions. These benefits include continuation of benefits such as health care and life insurance coverage. The accrued postemployment benefits liability at December 31, 2019 and 2018 was $11 million and $12 million, respectively. The net periodic postemployment benefit expense for the years ended December 31, 2019, 2018, and 2017 were $1 million, $4 million and $3 million, respectively. |
POSTEMPLOYMENT AND POSTRETIREME
POSTEMPLOYMENT AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
POSTEMPLOYMENT AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS | 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 U.S. plan, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average remaining life expectancy of inactive participants. In all of 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. During 2019 and 2017, the Company completed balance sheet risk mitigation actions related to certain U.S. and non-U.S. pension plans. These actions included the purchase of non-participating annuity contracts from insurance companies and the payment of lump sums to retirees, which resulted in the settlement of liabilities to affected participants. As a result of these transactions, the Company recognized pension settlement losses of $43 million during the twelve months ended December 31, 2019 and $64 million during the twelve months ended December 31, 2017. These losses are included in Non-operating expense (income) on the Consolidated Statements of Earnings in our Corporate, Other and Eliminations category. These transactions did not have a material effect on the plans' funded status. The following tables provide a reconciliation of the change in the projected benefit obligation, the change in plan assets and the net amount recognized in the Consolidated Balance Sheets (in millions): December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Change in Projected Benefit Obligation Benefit obligation at beginning of period $ 891 $ 427 $ 1,318 $ 993 $ 457 $ 1,450 Service cost 5 5 10 6 6 12 Interest cost 34 13 47 34 13 47 Actuarial loss (gain) 85 42 127 (67) (18) (85) Currency loss (gain) — 13 13 — (26) (26) Benefits paid (45) (18) (63) (75) (17) (92) Settlements/curtailments (104) (7) (111) — (6) (6) Acquisition — — — — 11 11 Other — — — — 7 7 Benefit obligation at end of period $ 866 $ 475 $ 1,341 $ 891 $ 427 $ 1,318 December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Change in Plan Assets Fair value of assets at beginning of period $ 727 $ 328 $ 1,055 $ 836 $ 364 $ 1,200 Actual return on plan assets 130 50 180 (59) (8) (67) Currency gain (loss) — 11 11 — (20) (20) Company contributions 25 21 46 25 15 40 Benefits paid (45) (18) (63) (75) (17) (92) Settlements/curtailments (104) (5) (109) — (6) (6) Other — (1) (1) — — — Fair value of assets at end of period $ 733 $ 386 $ 1,119 $ 727 $ 328 $ 1,055 Funded status $ (133) $ (89) $ (222) $ (164) $ (99) $ (263) December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Amounts Recognized in the Consolidated Balance Sheets Prepaid pension cost $ — $ 11 $ 11 $ — $ 7 $ 7 Accrued pension cost – current — (2) (2) — (2) (2) Accrued pension cost – non-current (133) (98) (231) (164) (104) (268) Net amount recognized $ (133) $ (89) $ (222) $ (164) $ (99) $ (263) Amounts Recorded in AOCI Net actuarial loss $ (345) $ (97) $ (442) $ (392) $ (92) $ (484) The following table presents information about the projected benefit obligation, accumulated benefit obligation (ABO) and plan assets of the Company’s pension plans (in millions): December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Plans with ABO in excess of fair value of plan assets: Projected benefit obligation $ 866 $ 300 $ 1,166 $ 891 $ 269 $ 1,160 Accumulated benefit obligation $ 866 $ 295 $ 1,161 $ 891 $ 265 $ 1,156 Fair value of plan assets $ 733 $ 205 $ 938 $ 727 $ 169 $ 896 Plans with fair value of assets in excess of ABO: Projected benefit obligation $ — $ 175 $ 175 $ — $ 158 $ 158 Accumulated benefit obligation $ — $ 159 $ 159 $ — $ 140 $ 140 Fair value of plan assets $ — $ 181 $ 181 $ — $ 159 $ 159 Summary of all plans: Total projected benefit obligation $ 866 $ 475 $ 1,341 $ 891 $ 427 $ 1,318 Total accumulated benefit obligation $ 866 $ 454 $ 1,320 $ 891 $ 405 $ 1,296 Total fair value of plan assets $ 733 $ 386 $ 1,119 $ 727 $ 328 $ 1,055 Weighted-Average Assumptions Used to Determine Benefit Obligation The following table presents weighted average assumptions used to determine benefit obligations at the measurement dates: December 31, 2019 2018 United States Plans Discount rate 3.30 % 4.25 % Expected return on plan assets 6.50 % 6.75 % Non-United States Plans Discount rate 2.24 % 3.04 % Expected return on plan assets 4.66 % 4.91 % Rate of compensation increase 3.99 % 4.14 % Components of Net Periodic Pension Cost The following table presents the components of net periodic pension cost (in millions): Twelve Months Ended December 31, 2019 2018 2017 Service cost $ 10 $ 12 $ 12 Interest cost 47 47 55 Expected return on plan assets (68) (73) (79) Amortization of actuarial loss 15 15 18 Settlement/curtailment 44 — 64 Net periodic pension cost $ 48 $ 1 $ 70 Weighted-Average Assumptions Used to Determine Net Periodic Pension Cost The following table presents weighted-average assumptions used to determine net periodic pension costs for the periods noted: Twelve Months Ended December 31, 2019 2018 2017 United States Plans Discount rate 4.25 % 3.55 % 3.95 % Expected return on plan assets 6.75 % 6.75 % 6.75 % Rate of compensation increase N/A (a) N/A (a) N/A (a) Non-United States Plans Discount rate 3.04 % 2.88 % 3.14 % Expected return on plan assets 4.91 % 5.22 % 5.92 % Rate of compensation increase 4.14 % 4.29 % 4.25 % (a) Not applicable due to changes in plan made on August 1, 2009 that were effective beginning January 1, 2010. The expected return on plan assets assumption is derived by taking into consideration the target plan asset allocation, historical rates of return on those assets, projected future asset class returns and net outperformance of the market by active investment managers. An asset return model is used to develop an expected range of returns on plan investments over a 20 year period, with the expected rate of return selected from a best estimate range within the total range of projected results. The result is then rounded down to the nearest 25 basis points. Accumulated Other Comprehensive Earnings (Deficit) Of the $(442) million balance in AOCI, $15 million is expected to be recognized as net periodic pension cost during 2020. Items Measured at Fair Value The Company classifies and discloses pension plan assets in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Plan Assets The tables in this section show pension plan asset fair values and fair value leveling information. The assets are categorized into one of the three levels of the fair value hierarchy or are not subject to leveling, in the case of investments that are valued using the net asset value per share (or its equivalent) practical expedient ("NAV"). The following table summarizes the fair values and applicable fair value hierarchy levels of United States pension plan assets (in millions): December 31, 2019 Asset Category Level 1 Level 2 Level 3 Total Equities: Domestic $ 57 $ — $ — $ 57 International 55 — — 55 Fixed income and cash equivalents: Corporate bonds 28 214 — 242 Government debt — 85 — 85 Real estate investment trusts 22 — — 22 Total United States plan assets subject to leveling $ 162 $ 299 $ — 461 Plan assets measured at NAV: Equities 130 Real assets 62 Fixed income and cash equivalents 33 Absolute return strategies 47 Total United States plan assets $ 733 December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Equities: Domestic $ 50 $ — $ — $ 50 International 52 — — 52 Fixed income and cash equivalents: Corporate bonds — 236 — 236 Government debt — 91 — 91 Real estate investment trusts 24 — — 24 Total United States plan assets subject to leveling $ 126 $ 327 $ — 453 Plan assets measured at NAV: Equities 123 Real assets 54 Fixed income and cash equivalents 53 Absolute return strategies 44 Total United States plan assets $ 727 The following table summarizes the fair values and applicable fair value hierarchy levels of non-United States pension plan assets (in millions): December 31, 2019 Asset Category Level 1 Level 2 Level 3 Total Equities $ — $ 4 $ — $ 4 Fixed income and cash equivalents: Cash and cash equivalents — 65 — 65 Corporate bonds — 13 — 13 Total non-United States plan assets subject to leveling $ — $ 82 $ — 82 Plan assets measured at NAV: Equities 71 Fixed income and cash equivalents 123 Absolute return strategies and other 110 Total non-United States plan assets $ 386 December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Equities $ — $ 4 $ — $ 4 Fixed income and cash equivalents: Cash and cash equivalents — 62 — 62 Corporate bonds — 12 — 12 Total non-United States plan assets subject to leveling $ — $ 78 $ — 78 Plan assets measured at NAV: Equities 41 Fixed income and cash equivalents 109 Absolute return strategies 100 Total non-United States plan assets $ 328 Investment Strategy The current targeted asset allocation for the United States pension plan is to have 33% of assets invested in equities, 3% in real estate, 8% in real assets, 50% in intermediate and long-term fixed income securities and 6% in absolute return strategies. Assets are rebalanced quarterly to conform to policy tolerances. The Company actively evaluates the reasonableness of its asset mix given changes in the projected benefit obligation and market dynamics. Our investment policy and asset mix for the non-United States pension plans varies by location and is based on projected benefit obligation and market dynamics. Estimated Future Benefit Payments The following table shows estimated future benefit payments from the Company’s pension plans (in millions): Year Estimated Benefit Payments 2020 $ 76 2021 $ 75 2022 $ 75 2023 $ 75 2024 $ 75 2025-2029 $ 390 Contributions Owens Corning expects to contribute $25 million in cash to the United States pension plan during 2020 and another $25 million to non-United States plans. Actual contributions to the plans may change as a result of a variety of factors, including changes in laws that impact funding requirements. Defined Contribution Plans The Company sponsors two defined contribution plans which are available to substantially all United States employees. The Company matches a percentage of employee contributions up to a maximum level and contributes up to 2% of an employee’s wages regardless of employee contributions. The Company recognized expense of $48 million, $48 million and $42 million during the years ended December 31, 2019, 2018 and 2017, respectively, related to these plans. The Company maintains health care 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. Salaried employees hired on or before December 31, 2005 become eligible to participate in the United States health care plans upon retirement if they have accumulated 10 years of service after age 45, 48 or 50, depending on the category of employee. For employees hired after December 31, 2005, the Company does not provide subsidized retiree health care. Some of the plans are contributory, with some retiree contributions adjusted annually. The Company has reserved the right to change or eliminate these benefit plans subject to the terms of collective bargaining agreements. The following table provides a reconciliation of the change in the projected benefit obligation and the net amount recognized in the Consolidated Balance Sheets for the years ended December 31, 2019 and 2018 (in millions): December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Change in Projected Benefit Obligation Benefit obligation at beginning of period $ 183 $ 12 $ 195 $ 216 $ 14 $ 230 Service cost 1 — 1 1 — 1 Interest cost 7 1 8 8 — 8 Actuarial (gain)/loss (7) 2 (5) (25) — (25) Currency loss — — — — (1) (1) Plan amendments (1) — (1) (2) — (2) Benefits paid (14) (1) (15) (15) (1) (16) Benefit obligation at end of period $ 169 $ 14 $ 183 $ 183 $ 12 $ 195 Funded status $ (169) $ (14) $ (183) $ (183) $ (12) $ (195) Amounts Recognized in the Consolidated Balance Sheets Accrued benefit obligation – current $ (15) $ (1) $ (16) $ (17) $ — $ (17) Accrued benefit obligation – non-current (154) (13) (167) (166) (12) $ (178) Net amount recognized $ (169) $ (14) $ (183) $ (183) $ (12) $ (195) Amounts Recorded in AOCI Net actuarial gain $ 48 $ 3 $ 51 $ 49 $ 5 $ 54 Net prior service credit 6 — 6 9 — 9 Net amount recognized $ 54 $ 3 $ 57 $ 58 $ 5 $ 63 Weighted-Average Assumptions Used to Determine Benefit Obligations The following table presents the discount rates used to determine the benefit obligations: December 31, 2019 2018 United States plans 3.10 % 4.15 % Non-United States plans 3.84 % 4.59 % Components of Net Periodic Postretirement Benefit Cost The following table presents the components of net periodic postretirement benefit cost (in millions): Twelve Months Ended December 31, 2019 2018 2017 Service cost $ 1 $ 1 $ 2 Interest cost 8 8 9 Amortization of prior service credit (4) (4) (4) Amortization of actuarial gain (8) (6) (3) Net periodic postretirement benefit (income)/cost $ (3) $ (1) $ 4 Weighted-Average Assumptions Used to Determine Net Periodic Postretirement Benefit Cost The following table presents the discount rates used to determine net periodic postretirement benefit cost: Twelve Months Ended December 31, 2019 2018 2017 United States plans 4.15 % 3.45 % 3.80 % Non-United States plans 4.59 % 4.56 % 6.78 % The following table presents health care cost trend rates used to determine net periodic postretirement benefit cost, as well as information regarding the ultimate rate and the year in which the ultimate rate is reached: Twelve Months Ended December 31, 2019 2018 2017 United States plans: Initial rate at end of year 6.50 % 6.75 % 6.56 % Ultimate rate 5.00 % 5.00 % 5.00 % Year in which ultimate rate is reached 2026 2026 2025 Non-United States plans: Initial rate at end of year 5.45 % 5.40 % 5.73 % Ultimate rate 5.45 % 5.40 % 5.49 % Year in which ultimate rate is reached 2019 2019 2019 The health care cost trend rate assumption can have an effect on the amounts reported. To illustrate, a one-percentage point change in the December 31, 2019 assumed health care cost trend rate would have the following effects (in millions): 1-Percentage Point Increase Decrease Increase (decrease) in total service cost and interest cost components of net periodic postretirement benefit cost $ — $ — Increase (decrease) of accumulated postretirement benefit obligation $ 4 $ (3) Accumulated Other Comprehensive Earnings (Deficit) Approximately $11 million of the $57 million balance in AOCI is expected to be recognized as net periodic postretirement benefit during 2020. Estimated Future Benefit Payments The following table shows estimated future benefit payments from the Company’s postretirement benefit plans (in millions): Year Estimated Benefit Payments 2020 $ 16 2021 $ 15 2022 $ 15 2023 $ 14 2024 $ 14 2025-2029 $ 60 Postemployment Benefits The Company may also provide benefits to former or inactive employees after employment but before retirement under certain conditions. These benefits include continuation of benefits such as health care and life insurance coverage. The accrued postemployment benefits liability at December 31, 2019 and 2018 was $11 million and $12 million, respectively. The net periodic postemployment benefit expense for the years ended December 31, 2019, 2018, and 2017 were $1 million, $4 million and $3 million, respectively. |
CONTINGENT LIABILITIES AND OTHE
CONTINGENT LIABILITIES AND OTHER MATTERS | 12 Months Ended |
Dec. 31, 2019 | |
Loss Contingency [Abstract] | |
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. Litigation Settlement Gain In 2017, the Company and TopBuild Corp. entered into a settlement agreement in connection with a commercial breach of contract dispute. Under the terms of the settlement, TopBuild Corp. paid Owens Corning $30 million in cash in 2017. During the second quarter of 2017, a $29 million litigation settlement gain, net of legal fees, was recorded in Other expenses, net on the Consolidated Statements of Earnings in the Corporate, Other and Eliminations category. 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, reductions of greenhouse gases, 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 2030 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 December 31, 2019, the Company was involved with a total of 21 sites worldwide, including 7 Superfund sites and 14 owned or formerly owned sites. None of the liabilities for these sites are individually significant to the Company. |
STOCK COMPENSATION
STOCK COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK COMPENSATION | Description of the Plan On April 18, 2019, the Company's stockholders approved the Owens Corning 2019 Stock Plan (the "2019 Stock Plan") which replaced the 2016 Stock Plan. The 2019 Stock Plan authorizes grants of stock options, stock appreciation rights, restricted stock awards, restricted stock units, bonus stock awards, performance stock awards and performance stock units. At December 31, 2019, the number of shares remaining available under the 2019 Stock Plan for all stock awards was 4.1 million. Prior to 2019, employees were eligible to receive stock awards under the Owens Corning 2016 Stock Plan and the Owens Corning 2013 Stock Plan. Total Stock-Based Compensation Expense Stock-based compensation expense included in Marketing and administrative expenses in the accompanying Consolidated Statements of Earnings is as follows (in millions): Twelve Months Ended December 31, 2019 2018 2017 Total stock-based compensation expense $ 39 $ 47 $ 44 Income tax benefit recognized on stock-based compensation expense $ 7 $ 24 $ 26 Stock Options The Company has granted stock options under its stockholder approved stock plans. The Company calculates a weighted-average grant-date fair value using a Black-Scholes valuation model for options granted. Compensation expense for options is measured based on the fair market value of the option on the date of grant, and is recognized on a straight-line basis over a four The Company has not granted stock options since the year ended December 31, 2014. As of December 31, 2019, there was no unrecognized compensation cost related to stock options and the range of exercise prices on outstanding stock options was $25.45 - $42.16. The following table summarizes the Company’s stock option activity in 2019: Weighted-Average Number of Options Exercise Price Remaining Intrinsic Value (in millions) Outstanding, January 1, 2019 478,875 $ 37.18 4.00 $ 3 Exercised (64,075) 33.26 Outstanding, December 31, 2019 414,800 $ 37.79 3.06 $ 11 Exercisable, December 31, 2019 414,800 $ 37.79 3.06 $ 11 The total intrinsic value of stock options exercised and the resulting tax benefits received were as follows (in millions): Twelve Months Ended December 31, 2019 2018 2017 Cash received upon exercise of stock option awards $ 2 $ 1 $ 15 Income tax benefit received for stock option awards exercised $ — $ — $ 7 Restricted Stock Awards and Restricted Stock Units The Company has granted restricted stock awards and restricted stock units (collectively referred to as “RSUs”) under its stockholder approved stock plans. Compensation expense for restricted stock is measured based on the closing 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 The weighted average grant date fair value of RSUs granted in 2019, 2018 and 2017 was $52.60, $84.34 and $56.60, respectively. The following table shows a summary of the Company’s RSU plans: Number of Weighted- Balance at January 1, 2019 1,479,374 $ 52.30 Granted 542,693 53.10 Vested (390,673) 52.57 Forfeited/canceled (115,688) 61.68 Balance at December 31, 2019 1,515,706 $ 51.70 As of December 31, 2019, there was $30 million of total unrecognized compensation cost related to restricted stock. That cost is expected to be recognized over a weighted-average period of 2.16 years. The total grant date fair value of shares vested during the years ended December 31, 2019, 2018 and 2017 was $21 million, $23 million and $19 million, respectively. Performance Stock Awards and Performance Stock Units The Company has granted performance stock awards and performance stock units (collectively referred to as “PSUs”) as a part of its long-term incentive plan. All outstanding performance grants will fully settle in stock. The amount of stock ultimately distributed from the 2019, 2018 and 2017 grants is contingent on meeting internal company-based metrics or an external-based stock performance metric. In 2019, 2018 and 2017, the Company granted both internal company-based and external-based metric PSUs. Internal Company-based metrics The internal company-based metrics vest after a three-year period and are based on various company-based metrics over a three 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 three-year performance period. Pro-rata vesting may be utilized in the case of death, disability or retirement, and awards, if earned, will be paid at the end of the three-year period. External based metrics The external-based metrics vest after a three The following table provides a summary of these assumptions: Twelve Months Ended December 31, 2019 2018 2017 Expected volatility 26.67 % 24.56 % 26.06 % Risk free interest rate 2.45 % 2.22 % 1.44 % Expected term (in years) 2.90 2.92 2.92 Grant date fair value of units granted $ 68.65 $ 94.14 $ 59.71 The risk-free interest rate was based on zero coupon United States Treasury bills at the grant date. The expected term represents the period from the grant date to the end of the three-year performance period. PSU Summary As of December 31, 2019, there was $9 million total unrecognized compensation cost related to PSUs. That cost is expected to be recognized over a weighted-average period of 1.6 years. The total grant date fair value of shares vested during the years ended December 31, 2019, 2018 and 2017, was $14 million, $23 million and $9 million, respectively. The following table shows a summary of the Company's PSU plans: Number of Weighted- Average Grant Date Fair Value Balance as of January 1, 2019 360,977 $ 75.23 Granted 205,350 58.40 Vested (169,052) 43.04 Forfeited/canceled (84,550) 68.56 Balance as of December 31, 2019 312,725 $ 69.23 Employee Stock Purchase Plan |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE DEFICIT | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE DEFICIT | The following table summarizes the changes in accumulated other comprehensive income (deficit) (in millions): Twelve Months Ended December 31, 2019 2018 Currency Translation Adjustment Beginning balance $ (306) $ (183) Net investment hedge amounts classified into AOCI, net of tax 13 14 Gain/(loss) on foreign currency translation 11 (137) Other comprehensive income/(loss), net of tax 24 (123) Ending balance $ (282) $ (306) Pension and Other Postretirement Adjustment Beginning balance $ (350) $ (331) Amounts reclassified from AOCI to net earnings, net of tax (a) 35 4 Amounts classified into AOCI, net of tax (11) (23) Other comprehensive income/(loss), net of tax 24 (19) Ending balance $ (326) $ (350) Hedging Adjustment Beginning balance $ — $ — Amounts reclassified from AOCI to net earnings, net of tax (b) 3 (1) Amounts classified into AOCI, net of tax (5) 1 Other comprehensive (loss), net of tax (2) — Ending balance $ (2) $ — Total AOCI ending balance $ (610) $ (656) (a) These AOCI components are included in the computation of total Pension and Other Postretirement cost and are recorded in Non-operating expense (income). See Notes 14 and 15 for additional information. (b) Amounts reclassified from (loss)/gain on cash flow hedges are reclassified from AOCI to income when the hedged item affects earnings and is recognized in Cost of sales. See Note 5 for additional information. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
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): Twelve Months Ended December 31, 2019 2018 2017 Net earnings attributable to Owens Corning $ 405 $ 545 $ 289 Weighted-average number of shares outstanding used for basic earnings per share 109.2 110.4 111.5 Non-vested restricted and performance shares 0.7 0.8 1.5 Options to purchase common stock 0.2 0.2 0.2 Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share 110.1 111.4 113.2 Earnings per common share attributable to Owens Corning common stockholders: Basic $ 3.71 $ 4.94 $ 2.59 Diluted $ 3.68 $ 4.89 $ 2.55 Basic earnings per share is calculated by dividing earnings attributable to Owens Corning by the weighted-average number of shares of the Company’s common stock outstanding during the period. Outstanding shares consist of issued shares less treasury stock. On October 24, 2016, the Board of Directors approved a new share buy-back program under which the Company is authorized to repurchase up to 10 million shares of the Company’s outstanding common stock (the “Repurchase 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 for the year ended December 31, 2019 under the Repurchase Authorization. As of December 31, 2019, 3.6 million shares remain available for repurchase under the Repurchase Authorization. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | The following table summarizes our Earnings before taxes and Income tax expense (in millions): Twelve Months Ended December 31, 2019 2018 2017 Earnings before taxes: United States $ 315 $ 411 $ 342 Foreign 275 293 217 Total $ 590 $ 704 $ 559 Income tax expense: Current United States $ (4) $ (10) $ (2) State and local 11 6 5 Foreign 60 19 83 Total current 67 15 86 Deferred United States 112 114 196 State and local 11 12 3 Foreign (4) 15 (16) Total deferred 119 141 183 Total income tax expense $ 186 $ 156 $ 269 The reconciliation between the United States federal statutory rate and the Company’s effective income tax rate from continuing operations is: Twelve Months Ended December 31, 2019 2018 2017 United States federal statutory rate 21 % 21 % 35 % State and local income taxes, net of federal tax benefit 3 2 2 Foreign tax rate differential — — (5) U.S. tax expense on foreign earnings 1 2 49 Legislative tax rate changes 2 — (9) Foreign tax credits — — (29) Valuation allowance 3 2 3 Uncertain tax positions and settlements — (5) 1 Excess tax benefits related to stock compensation — (2) (1) Other, net 1 2 2 Effective tax rate 31 % 22 % 48 % During the first quarter of 2018, the Company adopted ASU No. 2016-16, “Intra-Entity Transfers of Assets Other Than Inventory (Topic 740).” Under this standard, the tax effects of intra-entity sales of assets other than inventory will be recognized immediately in the seller's tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. Any deferred tax asset that arises in the buyer’s jurisdiction would also be recognized at the time of the transfer. The standard is applied using a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the year of adoption. As of January 1, 2018, we recorded a $17 million decrease in Other non-current assets, a $7 million increase in Deferred income tax assets and a $10 million decrease to Accumulated earnings. Effective January 1, 2018, the U.S. Tax Cuts and Jobs Act of 2017 (the "Tax Act") created a new requirement to include global intangible low-taxed income (GILTI) earned by controlled foreign corporations (CFCs) in U.S. income. The GILTI must be included currently in the gross income of the CFCs’ U.S. shareholder. Under U.S. GAAP, we are allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). During the first quarter of 2018, we selected the period cost method in recording the tax effects of GILTI in our financial statements. In February 2018, the FASB issued ASU 2018-02 “Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”, which provides companies with an option to reclassify stranded tax effects resulting from enactment of the Tax Act from Accumulated other comprehensive income to Accumulated earnings. The standard was effective for the Company starting January 1, 2019. The Company has elected not to reclassify the income tax effects of the Tax Act from Accumulated other comprehensive income to Accumulated earnings. The Company continues to assert indefinite reinvestment in accordance with ASC 740 based on the laws as of enactment of the Tax Act. As of December 31, 2019, the Company has not provided for withholding or income taxes on approximately $1.6 billion of undistributed reserves of its foreign subsidiaries and affiliates as they are considered by management to be permanently reinvested. Quantification of the deferred tax liability associated with these undistributed reserves is not practicable. The cumulative temporary differences giving rise to the deferred tax assets and liabilities are as follows (in millions): December 31, 2019 December 31, 2018 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities Other employee benefits $ 76 $ — $ 87 $ — Pension plans 54 — 66 — Operating loss and tax credit carryforwards 195 — 255 — Depreciation — 247 — 259 Leases - Right of Use Assets — 49 — — Leases - Liability 49 — — — Amortization — 388 — 395 Foreign tax credits 97 — 161 — State and local taxes 3 — 3 — Other 76 — 61 — Subtotal 550 684 633 654 Valuation allowances (92) — (78) — Total deferred taxes $ 458 $ 684 $ 555 $ 654 The following table summarizes the amount and expiration dates of our deferred tax assets related to operating loss and credit carryforwards at December 31, 2019 (in millions): Expiration Dates Amounts U.S. federal loss carryforwards 2036 - 2037 $ 27 U.S. state loss carryforwards (a) 2020 – 2034 47 Foreign loss and tax credit carryforwards Indefinite 30 Foreign loss and tax credit carryforwards (a) 2020 – 2037 61 Other U.S. federal and state tax credits 2028 – 2034 30 Total operating loss and tax credit carryforwards $ 195 U.S foreign tax credits 2027 $ 97 (a) As of December 31, 2019, $16 million of U.S. state and $6 million of foreign deferred tax assets related to loss carryforwards that are set to expire over the next three years. At December 31, 2019, the Company had federal, state and foreign net operating loss (NOL) carryforwards of $0.1 billion, $1.4 billion and $0.4 billion, respectively. In order to utilize our NOLs and U.S. foreign tax credits ("FTCs"), the Company will need to generate federal, state, and foreign earnings before taxes of approximately $0.6 billion, $1.4 billion, and $0.4 billion, respectively. Certain of these loss carryforwards are subject to limitation as a result of the acquisition of certain foreign entities in 2007. However, the Company believes that these limitations on its loss carryforwards will not result in a forfeiture of any of the carryforwards. Deferred income taxes are provided for temporary differences between amounts of assets and liabilities for financial reporting purposes and the basis of such assets and liabilities as measured under enacted tax laws and regulations, as well as NOLs, tax credits and other carryforwards. A valuation allowance will be recorded to reduce deferred tax assets if, based on all available evidence, it is considered more likely than not that some portion or all of the recorded deferred tax assets will not be realized in future periods. To the extent the reversal of deferred tax liabilities is relied upon in our assessment of the realizability of deferred tax assets, they will reverse in the same period and jurisdiction as the temporary differences giving rise to the deferred tax assets. As of December 31, 2019, the Company had federal net deferred tax liabilities before valuation allowances of $96 million, state net deferred tax assets of $6 million, and foreign net deferred tax liabilities of $44 million. The valuation allowance of $92 million as of December 31, 2019 is related to tax assets of $43 million, $11 million and $38 million for U.S. federal FTCs and certain state and foreign jurisdictions, respectively. The realization of deferred tax assets depends on achieving a certain minimum level of future taxable income. Management currently believes that it is at least reasonably possible that the minimum level of taxable income will be met within the next 12 months to reduce the valuation allowance of certain foreign jurisdictions by a range of zero to $5 million. The valuation allowance of $78 million as of December 31, 2018 is related to tax assets of $34 million, $6 million, and $38 million for U.S. federal FTC's and certain state and foreign jurisdictions, respectively. The Company, or one of its subsidiaries, files income tax returns in the United States and other foreign jurisdictions. The Company is no longer subject to U.S. federal tax examinations for years before 2016 or state and foreign examinations for years before 2008. Due to the potential for resolution of federal, state and foreign examinations, and the expiration of various statutes of limitation, it is reasonably possible that the gross unrecognized tax benefits balance may change within the next 12 months by a range of zero to $3 million. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in millions): Twelve Months Ended December 31, 2019 2018 2017 Balance at beginning of period $ 84 $ 90 $ 98 Tax positions related to the current year Gross additions — 6 1 Tax positions related to prior years Gross additions 1 36 13 Gross reductions — (37) (11) Settlements (1) (5) (12) Expiration of statute of limitations (5) (4) — Impact of currency changes — (2) 1 Balance at end of period $ 79 $ 84 $ 90 If these uncertain tax benefits (UTBs) were to be recognized as of December 31, 2019, the Company’s income tax expense would decrease by about $60 million. The Company classifies all interest and penalties as income tax expense. As of December 31, 2019, 2018 and 2017, and for the periods then ended, the Company recognized $8 million, $10 million and $11 million, respectively, in liabilities for tax related interest and penalties on its Consolidated Balance Sheets and $2 million, $1 million and $1 million, respectively, of interest and penalty expense on its Consolidated Statements of Earnings. On February 5, 2018, the Company acquired all the outstanding equity of Paroc, a leading producer of mineral wool insulation for building and technical applications in Europe. The acquisition included net uncertain tax benefits (UTBs) related to a transfer pricing dispute and interest expense. On December 18, 2018, the Finnish Supreme Administrative Court (SAC) ruled in favor of Paroc Oy Ag, a wholly-owned subsidiary of the Company, regarding the transfer pricing dispute for tax years 2006 to 2008. Based on the SAC decision, the Company reduced the UTB regarding the transfer pricing dispute by $32 million and recorded a corresponding benefit to income tax expense. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (unaudited) | QUARTERLY FINANCIAL INFORMATION (unaudited) Select quarterly financial information is presented in the tables below for the quarterly periods (in millions, except per share amounts): Quarter First Second Third Fourth 2019 Net sales $ 1,667 $ 1,918 $ 1,883 $ 1,692 Gross margin $ 325 $ 440 $ 461 $ 383 Income tax expense $ 39 $ 59 $ 61 $ 27 Net earnings attributable to Owens Corning $ 44 $ 138 $ 150 $ 73 BASIC EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS $ 0.40 $ 1.27 $ 1.37 $ 0.67 DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS $ 0.40 $ 1.26 $ 1.36 $ 0.66 Quarter First Second Third Fourth 2018 Net sales $ 1,691 $ 1,824 $ 1,818 $ 1,724 Gross margin $ 355 $ 418 $ 448 $ 411 Income tax expense $ 11 $ 49 $ 67 $ 29 Net earnings attributable to Owens Corning $ 92 $ 121 $ 161 $ 171 BASIC EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS $ 0.83 $ 1.09 $ 1.46 $ 1.56 DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS $ 0.82 $ 1.08 $ 1.45 $ 1.55 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES [Disclosure] | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017 (in millions) Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Acquisitions and Divestitures Balance at End of Period FOR THE YEAR ENDED DECEMBER 31, 2019 Allowance for doubtful accounts $ 16 $ 2 $ — $ (7) (a) $ — $ 11 Tax valuation allowance $ 78 $ 19 $ 1 $ (6) $ — $ 92 FOR THE YEAR ENDED DECEMBER 31, 2018 Allowance for doubtful accounts $ 19 $ — $ — $ (4) (a) $ 1 $ 16 Tax valuation allowance $ 94 $ 13 $ (4) $ (31) $ 6 $ 78 FOR THE YEAR ENDED DECEMBER 31, 2017 Allowance for doubtful accounts $ 9 $ 12 $ — $ (2) (a) $ — $ 19 Tax valuation allowance $ 103 $ 9 $ 7 $ (25) $ — $ 94 (a) Uncollectible accounts written off, net of recoveries. |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS AND RESERVES FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017 (in millions) Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions Acquisitions and Divestitures Balance at End of Period FOR THE YEAR ENDED DECEMBER 31, 2019 Allowance for doubtful accounts $ 16 $ 2 $ — $ (7) (a) $ — $ 11 Tax valuation allowance $ 78 $ 19 $ 1 $ (6) $ — $ 92 FOR THE YEAR ENDED DECEMBER 31, 2018 Allowance for doubtful accounts $ 19 $ — $ — $ (4) (a) $ 1 $ 16 Tax valuation allowance $ 94 $ 13 $ (4) $ (31) $ 6 $ 78 FOR THE YEAR ENDED DECEMBER 31, 2017 Allowance for doubtful accounts $ 9 $ 12 $ — $ (2) (a) $ — $ 19 Tax valuation allowance $ 103 $ 9 $ 7 $ (25) $ — $ 94 (a) Uncollectible accounts written off, net of recoveries. |
BUSINESS AND SUMMARY OF SIGNI_2
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (POLICIES) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy | Basis of Presentation Unless the context requires otherwise, the terms “Owens Corning,” “Company,” “we” and “our” in these notes refer to Owens Corning and its subsidiaries. The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements of the Company include the accounts of majority-owned subsidiaries. Intercompany accounts and transactions are eliminated. |
Reclassifications | ReclassificationsCertain reclassifications have been made to the 2018 and 2017 Consolidated Financial Statements and Notes to the Consolidated Financial Statements to conform to the classifications used in 2019. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. |
Revenue Recognition | Revenue Recognition We recognize revenue as the amount of consideration that we expect to receive in exchange for transferring promised goods or services to customers. We do not adjust the transaction price for the effects of a significant financing component, as the time period between control transfer of goods and services and expected payment is one year or less. At the time of sale, we estimate provisions for different forms of variable consideration (discounts, rebates, returns and other refund liabilities) based on historical experience, current conditions and contractual obligations, as applicable. The estimated transaction price is typically not subject to significant reversals. We adjust these estimates when the most likely amount of consideration we expect to receive changes, although these changes are typically minor. Sales, value-added and other similar taxes that we collect are excluded from revenue. Many of our customer volume commitments are short-term and our performance obligations are generally limited to single purchase orders. Substantially all of our revenue is recognized at a point-in-time when control of goods transfers to the customer. Control transfer typically occurs when goods are shipped from our facilities or at other predetermined control transfer points (for instance, destination terms or consignment arrangements). Revenue Recognition (continued) We typically do not satisfy performance obligations without obtaining an unconditional right to payment from customers and, therefore, do not carry contract asset balances on the Consolidated Balance Sheets. Contract liability balances are recorded separately from receivables on the Consolidated Balance Sheets in either Total current liabilities or Other liabilities, depending on the timing of performance obligation satisfaction. We sell separately-priced warranties that extend certain product and workmanship coverages beyond our standard product warranty, which is described in Note 11. The up-front consideration on extended warranty contracts is deferred and recognized as revenue over time, based on the respective coverage period, ranging from 16 to 20 years. On an annual basis, we expect to recognize approximately $3 million of revenue associated with these extended warranty contracts. Additionally, in certain limited cases, we receive consideration before goods or services are transferred to the customer. These customer down payments and deposits are deferred, and typically recognized as revenue in the following quarter when we satisfy the related performance obligations. As a practical expedient, we recognize incremental costs of obtaining a contract, if any, as an expense when incurred if the amortization period of the asset would have been one year or less. We do not have any costs to obtain or fulfill a contract that are capitalized under Accounting Standard Codification (ASC) 606. |
Cost of Sales | Cost of Sales Cost of sales includes material, labor, energy and manufacturing overhead costs, including depreciation and amortization expense associated with the manufacture and distribution of the Company’s products. Provisions for warranties are provided in the same period that the related sales are recorded and are based on historical experience, current conditions and contractual obligations, as applicable. Distribution costs include inbound freight costs; purchasing and receiving costs; inspection costs; warehousing costs; shipping and handling costs, which include costs incurred relating to preparing, packaging, and shipping products to customers; and other costs of the Company’s distribution network. We account for shipping and handling activities that occur after control of the related good transfers as fulfillment activities instead of performance obligations. All shipping and handling costs billed to the customer are included as net sales in the Consolidated Statements of Earnings. |
Marketing and Administrative Expenses | Marketing and Advertising ExpensesMarketing and advertising expenses are included in Marketing and administrative expenses. These costs include advertising and marketing communications, which are expensed the first time the advertisement takes place. |
Science and Technology Expenses | Science and Technology Expenses The Company incurs certain expenses related to science and technology. These expenses include salaries, building and equipment costs, utilities, administrative expenses, materials and supplies associated with the improvement and development of the Company’s products and manufacturing processes. These costs are expensed as incurred. |
Earnings per Share | Earnings per Share Basic earnings per share are computed using the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect the dilutive effect of common equivalent shares and increased shares that would result from the conversion of equity securities. The effects of anti-dilution are not presented. |
Cash, Cash Equivalents and Restricted Cash | Cash, Cash Equivalents and Restricted CashThe Company defines cash and cash equivalents as cash and time deposits with maturities of three months or less when purchased. |
Accounts Receivable | Accounts Receivable Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The allowance for doubtful accounts is an estimate of the amount of probable credit losses in our existing accounts receivable. Account balances are charged off against the allowance when the Company believes it is probable the receivable will not be recovered. |
Inventory Valuation | Inventory Valuation Inventory costs include material, labor, and manufacturing overhead costs, including depreciation and amortization expense associated with the manufacture and distribution of the Company’s products. Inventories are stated at lower of cost or net realizable value and expense estimates are made for excess and obsolete inventories. Cost is determined by the first-in, first-out (“FIFO”) method. |
Investments in Affiliates | Investments in AffiliatesThe Company accounts for investments in affiliates of 20% to 50% ownership when the Company does not have a controlling financial interest using the equity method under which the Company’s share of earnings and losses of the affiliate is reflected in earnings, and dividends are credited against the investment in affiliate when declared. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill assets are not amortized but are tested for impairment on at least an annual basis. In the current year, as part of the annual assessment, the Company used both a qualitative and quantitative approach to determine whether the fair value of a reporting unit was less than its carrying amount. Events and circumstances we consider in performing the qualitative assessment include macro-economic conditions, market and industry conditions, internal cost factors, and the overall financial performance of the reporting units. As part of our quantitative testing process for goodwill, the Company estimates fair values using a discounted cash flow approach from the perspective of a market participant. Significant assumptions used in the discounted cash flow approach are revenue growth rates and earnings before interest and taxes ("EBIT") margins used in estimating discrete period cash flow forecasts of the reporting unit, the discount rate, and the long-term revenue growth rate and EBIT margins used in estimating the terminal business value. The cash flow forecasts of the reporting units are based upon management’s long-term view of our markets and are the forecasts that are used by senior management and the Board of Directors to evaluate operating performance. The discount rate utilized is management’s estimate of what the market’s weighted average cost of capital is for a company with a similar debt rating and stock volatility, as measured by beta. The terminal business value is determined by applying the long-term growth rate to the latest year for which a forecast exists. As part of our goodwill quantitative testing process, we would evaluate whether there are reasonably likely changes to management’s estimates that would have a material impact on the results of the goodwill impairment testing. Other indefinite-lived intangible assets are not amortized but are tested for impairment on at least an annual basis or when determined to have a finite useful life. Substantially all of the indefinite-lived intangible assets are in trademarks and trade names. The Company uses the royalty relief approach to determine whether it is more likely than not that the fair value of these assets is less than its carrying amount. This review is performed annually, or when circumstances arise which indicate there may be impairment. When applying the royalty relief approach, the Company performs a discounted cash flow analysis based on the value derived from owning these trademarks and trade names and being relieved from paying royalty to third parties. Significant assumptions used include projected cash flows, royalty rates, discount rate, and terminal value. The inputs for the goodwill and indefinite-lived intangible tests are considered Level 3 inputs under the fair value hierarchy as they are the Company’s own data, and are unobservable in the marketplace. Indefinite-lived intangible assets purchased through acquisition are generally tested qualitatively for impairment in the first year following the acquisition before transitioning to the standard methodology described herein in subsequent years. |
Properties and Depreciation | Properties and Depreciation Property, plant and equipment are stated at cost and depreciated over their estimated useful lives using the straight-line method. Property, plant and equipment accounts are relieved of the cost and related accumulated depreciation when assets are disposed of or otherwise retired. Precious metals used in our production tooling are included in property, plant and equipment and are depleted as they are consumed during the production process. Depletion typically represents an annual expense of less than 3% of the outstanding value and is recorded in Cost of sales on the Consolidated Statements of Earnings. The range of useful lives for the major components of the Company’s plant and equipment is as follows: Buildings and leasehold improvements 15 – 40 years Machinery and equipment Furnaces 4 – 15 years Information systems 5 – 10 years Equipment 5 – 20 years Expenditures for normal maintenance and repairs are expensed as incurred. |
Asset Impairments | Asset Impairments The Company evaluates tangible and intangible long-lived assets for impairment when triggering events have occurred. This requires significant assumptions including projected cash flows, projected income tax rate and terminal business value. These inputs are considered Level 3 inputs under the fair value hierarchy as they are the Company’s own data, and are unobservable in the marketplace. Changes in management intentions, market conditions or operating performance could indicate that impairment charges might be necessary that could be material to the Company’s Consolidated Financial Statements in any given period. |
Income Taxes | Income TaxesThe Company recognizes current tax liabilities and assets for the estimated taxes payable or refundable on the tax returns for the current year. Deferred tax balances reflect the impact of temporary differences between the carrying amount of assets and liabilities and their tax basis. Amounts are stated at enacted tax rates expected to be in effect when taxes are actually paid or recovered. In addition, realization of certain deferred tax assets is dependent upon our ability to generate future taxable income. The Company records a valuation allowance to reduce its deferred tax assets to the amount that it believes is more likely than not to be realized. In addition, the Company estimates tax reserves to cover potential taxing authority claims for income taxes and interest attributable to audits of open tax years. |
Taxes Collected From Customers and Remitted to Government Authorities and Taxes Paid to Vendors | Taxes Collected from Customers and Remitted to Government Authorities and Taxes Paid to Vendors Taxes are assessed by various governmental authorities at different rates on many different types of transactions. The Company charges sales tax or value-added tax (VAT) on sales to customers where applicable, as well as captures and claims back all available VAT that has been paid on purchases. VAT is recorded in separate payable or receivable accounts and does not affect revenue or cost of sales line items in the income statement. VAT receivable is recorded as a percentage of qualifying purchases at the time the vendor invoice is processed. VAT payable is recorded as a percentage of qualifying sales at the time an Owens Corning sale to a customer subject to VAT occurs. Amounts are paid to the taxing authority according to the method and collection prescribed by local regulations. Where applicable, VAT payable is netted against VAT receivable. The Company also pays sales tax to vendors who include a tax, required by government regulations, to the purchase price charged to the Company. |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits Accounting for pensions and other postretirement benefits involves estimating the cost of benefits to be provided well into the future and attributing that cost over the time period each employee works. To accomplish this, extensive use is made of assumptions about investment returns, discount rates, inflation, mortality, turnover and medical costs. |
Derivative Financial Instruments | Derivative Financial Instruments The Company recognizes all derivative instruments as either assets or liabilities at fair value on the balance sheet. Please refer to Note 5 for further disclosure on derivatives. The Company performs an analysis for effectiveness of its derivatives designated as hedging instruments at the end of each quarter based on the terms of the contracts and the underlying items being hedged. The change in the fair value of cash flow hedges is deferred in Accumulated other comprehensive income (deficit) ("AOCI") and is subsequently recognized in Cost of sales (for commodity and foreign currency cash flow hedges) on the Consolidated Statements of Earnings in order to mirror the location of the hedged items impacting earnings. Cash settlements for commodity and foreign currency hedges qualifying as cash flow hedges are included in Operating activities in the Consolidated Statements of Cash Flows. 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. The changes in fair values of these derivative instruments are recognized in Currency translation adjustment (a component of AOCI), with recognition of the excluded components amortized to Interest expense, net on the Consolidated Statements of Earnings. Cash settlements for derivatives qualifying as net investment hedges are included in Investing activities in the Consolidated Statements of Cash Flows. |
Fair Value Measurements | Fair Value Measurements The carrying value of cash and cash equivalents, accounts receivable and short-term debt approximate fair value because of the short-term maturity of the instruments. The Company uses widely accepted valuation tools to determine fair value of our derivatives, such as discounting cash flows to calculate a present value for the derivatives. 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 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. Please refer to Notes 5 and 13 for additional fair value disclosure of derivative financial instruments and long-term debt, respectively. |
Foreign Currency | Foreign CurrencyThe functional currency of the Company’s subsidiaries is generally the applicable local currency. Assets and liabilities of foreign subsidiaries are translated into United States dollars at the period-end rate of exchange, and their Statements of Earnings and Statements of Cash Flows are converted on an ongoing basis at the monthly average rate. The resulting translation adjustment is included in AOCI in the Consolidated Balance Sheets and Consolidated Statements of Stockholders’ Equity. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recorded in Other expenses, net in the Consolidated Statements of Earnings as incurred. |
Accounting Pronouncements | Accounting Pronouncements The following table summarizes recent accounting standard updates (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)," as amended by ASU 2018-19, 2019-04, 2019-05, 2019-10 and 2019-11 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 do not believe the adoption of this guidance will have a material effect on our consolidated financial statements. Our current accounts receivable policy (as described in Note 1 of the Consolidated Financial Statements) uses historical and forward-looking information to estimate the amount of expected credit losses in our existing accounts receivable. We have determined that our current systems, policies and procedures comply with the requirements of this standard. |
BUSINESS AND SUMMARY OF SIGNI_3
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | The range of useful lives for the major components of the Company’s plant and equipment is as follows: Buildings and leasehold improvements 15 – 40 years Machinery and equipment Furnaces 4 – 15 years Information systems 5 – 10 years Equipment 5 – 20 years Property, plant and equipment consist of the following (in millions): December 31, 2019 December 31, 2018 Land $ 221 $ 224 Buildings and leasehold improvements 1,186 1,091 Machinery and equipment 4,978 4,628 Construction in progress 310 443 6,695 6,386 Accumulated depreciation (2,840) (2,575) Property, plant and equipment, net $ 3,855 $ 3,811 |
SEGMENT INFORMATION (TABLE)
SEGMENT INFORMATION (TABLE) | 12 Months Ended |
Dec. 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. Twelve Months Ended December 31, 2019 2018 2017 Reportable Segments Composites $ 2,059 $ 2,041 $ 2,068 Insulation 2,668 2,720 2,001 Roofing 2,634 2,492 2,553 Total reportable segments 7,361 7,253 6,622 Corporate eliminations (201) (196) (238) NET SALES $ 7,160 $ 7,057 $ 6,384 |
Schedule of Revenues by Geographical Areas | External Customer Sales by Geographic Region United States $ 4,776 $ 4,647 $ 4,495 Europe 1,209 1,209 661 Asia Pacific 664 656 675 Canada and other 511 545 553 NET SALES $ 7,160 $ 7,057 $ 6,384 |
Schedule of Earnings before Interest and Taxes | The following table summarizes EBIT by segment (in millions): Twelve Months Ended December 31, 2019 2018 2017 Reportable Segments Composites $ 247 $ 251 $ 291 Insulation 230 290 177 Roofing 455 434 535 Total reportable segments 932 975 1,003 Restructuring costs (28) (22) (48) Acquisition-related costs — (16) (15) Recognition of acquisition inventory fair value step-up — (2) (5) Litigation settlement gain, net of legal fees — — 29 Pension settlement losses (43) — (64) Environmental liability charges (4) — (15) General corporate expense and other (104) (114) (148) Total Corporate, other and eliminations (179) (154) (266) EBIT $ 753 $ 821 $ 737 |
Reconciliation of Assets from Segment to Consolidated | The following table summarizes total assets by segment and property, plant and equipment by geographic region (in millions): December 31, TOTAL ASSETS 2019 2018 Reportable Segments Composites $ 2,470 $ 2,480 Insulation 4,975 4,907 Roofing 1,784 1,750 Total reportable segments 9,229 9,137 Cash and cash equivalents 172 78 Noncurrent deferred income taxes 46 43 Investments in affiliates 51 51 Assets held for sale 1 3 Corporate property, plant and equipment, other assets and eliminations 507 459 CONSOLIDATED TOTAL ASSETS $ 10,006 $ 9,771 |
Schedule of Property, Plant and Equipment by Geographical Areas | December 31, PROPERTY, PLANT AND EQUIPMENT BY GEOGRAPHIC REGION 2019 2018 United States $ 2,204 $ 2,166 Europe 762 779 Asia Pacific 601 567 Canada and other 288 299 TOTAL PROPERTY, PLANT AND EQUIPMENT $ 3,855 $ 3,811 |
Schedule of Depreciation and Amortization by Segment | The following table summarizes the provision for depreciation and amortization by segment (in millions): Twelve Months Ended December 31, 2019 2018 2017 Reportable Segments Composites $ 154 $ 147 $ 144 Insulation 194 186 124 Roofing 54 51 50 Total reportable segments 402 384 318 General corporate depreciation and amortization (a) 55 49 53 CONSOLIDATED PROVISION FOR DEPRECIATION AND AMORTIZATION $ 457 $ 433 $ 371 (a) In 2019, 2018 and 2017, General corporate depreciation and amortization expense included $9 million, $10 million and $17 million, respectively, of accelerated depreciation related to restructuring actions further explained in Note 12 to the Consolidated Financial Statements. |
Schedule of Additions to Property, Plant and Equipment by Segment | The following table summarizes additions to property, plant and equipment on an accrual basis by segment (in millions): Twelve Months Ended December 31, 2019 2018 2017 Reportable Segments Composites $ 123 $ 154 $ 148 Insulation 210 240 151 Roofing 56 91 66 Total reportable segments 389 485 365 General corporate additions 62 57 37 CONSOLIDATED ADDITIONS TO PROPERTY, PLANT AND EQUIPMENT $ 451 $ 542 $ 402 |
REVENUE (TABLE)
REVENUE (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables show a disaggregation of Net sales (in millions): Twelve Months Ended December 31, 2019 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 269 $ 927 $ 2,375 $ (195) $ 3,376 U.S. commercial and industrial 614 643 143 — 1,400 Europe 572 625 13 (1) 1,209 Asia-Pacific 475 176 13 — 664 Rest of world 129 297 90 (5) 511 NET SALES $ 2,059 $ 2,668 $ 2,634 $ (201) $ 7,160 |
INVENTORIES (TABLE)
INVENTORIES (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consist of the following (in millions): December 31, 2019 2018 Finished goods $ 715 $ 730 Materials and supplies 318 342 Total inventories $ 1,033 $ 1,072 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (TABLE) | 12 Months Ended |
Dec. 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 December 31, 2019 December 31, 2018 Derivative assets designated as hedging instruments: Net investment hedges: Cross currency swaps Other current assets $ 12 $ 9 Cross currency swaps Other non-current assets $ 1 $ — Derivative liabilities designated as hedging instruments: Net investment hedges: Cross-currency swaps Other liabilities $ 4 $ 17 Cash flow hedges: Natural gas forward swaps Current liabilities $ 3 $ 1 Derivative assets not designated as hedging instruments: Foreign exchange forward contracts Other current assets $ 9 $ 1 Derivative liabilities not designated as hedging instruments: Foreign exchange forward contracts Current 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): Twelve Months Ended Location 2019 2018 2017 Derivative activity designated as hedging instruments: Natural gas cash flow hedges: Amount of loss/(gain) reclassified from AOCI into earnings Cost of sales $ 4 $ (2) $ (1) Amount of loss recognized in earnings (ineffective portion) Other expenses, net $ — $ — $ 2 Cross-currency swap net investment hedges: Amount of gain recognized in earnings on derivative amounts excluded from effectiveness testing Interest expense, net $ (13) $ (12) $ — Derivative activity not designated as hedging instruments: Foreign currency: Amount of (gain)/loss recognized in earnings (a) Other expenses, net $ (35) $ (55) $ 5 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 Twelve Months Ended December 31, Hedging Type Derivative Financial Instrument 2019 2018 Net investment hedge Cross-currency swaps $ (18) $ (18) Cash flow hedge Natural gas forward swaps $ 2 $ — |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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 — (16) (1) (17) Balance at December 31, 2019 $ 57 $ 1,479 $ 396 $ 1,932 The annual tests performed in 2019 resulted in no impairment of goodwill or indefinite-lived intangible assets. Testing did indicate that the business enterprise value for the Insulation reporting unit exceeded its carrying value by approximately 10%. There is uncertainty surrounding the macroeconomic factors that impact this reporting unit and a sustained downturn in these factors or a change in the long-term revenue growth or profitability for this reporting unit could increase the likelihood of a future impairment. |
Schedule of Finite-Lived Intangible Assets | Other intangible assets consist of the following (in millions): December 31, 2019 December 31, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Trademarks $ 1,139 $ — $ 1,139 $ 1,144 $ — $ 1,144 Customer relationships 550 (167) 383 554 (138) 416 Technology 319 (152) 167 321 (134) 187 Other 67 (35) 32 60 (28) 32 Total other intangible assets $ 2,075 $ (354) $ 1,721 $ 2,079 $ (300) $ 1,779 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The estimated amortization expense for intangible assets for the next five years is as follows (in millions): Period Amortization 2020 $ 48 2021 $ 48 2022 $ 45 2023 $ 42 2024 $ 39 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The range of useful lives for the major components of the Company’s plant and equipment is as follows: Buildings and leasehold improvements 15 – 40 years Machinery and equipment Furnaces 4 – 15 years Information systems 5 – 10 years Equipment 5 – 20 years Property, plant and equipment consist of the following (in millions): December 31, 2019 December 31, 2018 Land $ 221 $ 224 Buildings and leasehold improvements 1,186 1,091 Machinery and equipment 4,978 4,628 Construction in progress 310 443 6,695 6,386 Accumulated depreciation (2,840) (2,575) Property, plant and equipment, net $ 3,855 $ 3,811 |
LEASES (TABLE)
LEASES (TABLE) | 12 Months Ended |
Dec. 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 December 31, 2019 Assets Operating lease assets Operating lease right-of-use assets $ 203 Finance lease assets Other non-current assets 21 Total lease assets $ 224 Liabilities Current Operating Current liabilities $ 66 Finance Current liabilities 7 Non-Current Operating Non-current operating lease liabilities 138 Finance Long-term debt, net of current portion 19 Total lease liabilities $ 230 |
Supplemental Information Related to Leases | Other Information The tables below present supplemental information related to leases as of December 31, 2019: Weighted-average remaining lease term (years) December 31, 2019 Operating leases 4.0 Finance leases 3.9 Weighted-average discount rate December 31, 2019 Operating leases 3.30 % Finance leases 6.29 % |
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 December 31, 2019 (in millions): Period Operating Leases Finance Leases 2020 $ 73 $ 8 2021 60 8 2022 39 6 2023 22 4 2024 11 2 2025 and beyond 17 1 Total minimum lease payments 222 29 Less: implied interest 18 3 Present value of future minimum lease payments 204 26 Less: current lease obligations 66 7 Long-term lease obligations $ 138 $ 19 |
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 December 31, 2019 (in millions): Period Operating Leases Finance Leases 2020 $ 73 $ 8 2021 60 8 2022 39 6 2023 22 4 2024 11 2 2025 and beyond 17 1 Total minimum lease payments 222 29 Less: implied interest 18 3 Present value of future minimum lease payments 204 26 Less: current lease obligations 66 7 Long-term lease obligations $ 138 $ 19 |
Schedule of Future Minimum Rental Payments for Operating Leases | Period Minimum Future Rental Commitments 2019 $ 83 2020 $ 64 2021 $ 47 2022 $ 31 2023 $ 18 2024 and beyond $ 27 |
TOTAL CURRENT LIABILITIES (TABL
TOTAL CURRENT LIABILITIES (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Current liabilities consist of the following current portions of these liabilities (in millions): December 31, 2019 2018 Accounts payable $ 815 $ 851 Payroll, vacation pay and incentive compensation 172 157 Current operating lease liabilities 66 — Other 276 270 Total $ 1,329 $ 1,278 |
WARRANTIES (TABLE)
WARRANTIES (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | A reconciliation of the warranty liability is as follows (in millions): December 31, 2019 2018 Beginning balance $ 60 $ 55 Amounts accrued for current year 21 20 Settlements of warranty claims (17) (15) Ending balance $ 64 $ 60 |
RESTRUCTURING AND ACQUISITION_2
RESTRUCTURING AND ACQUISITION-RELATED COSTS (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs | The following table presents the impact and respective location of total restructuring costs on the Consolidated Statements of Earnings, which are included in our Corporate, Other and Eliminations category (in millions): Twelve Months Ended December 31, Type of Cost Location 2019 2018 2017 Accelerated depreciation Cost of sales $ 9 $ 10 $ 17 Other exit costs Cost of sales 6 7 3 Severance Other expenses, net 13 4 27 Other exit (gains)/costs (a) Other expenses, net (1) 1 1 Other exit costs Non-operating expense (income) 1 — — Total restructuring costs $ 28 $ 22 $ 48 |
Cost Reductions Actions 2014 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the status of the unpaid liabilities from the Company’s restructuring activities (in millions): Insulation Network Optimization Restructuring 2017 Cost Reduction Actions Acquisition-Related Restructuring Balance at December 31, 2018 $ — $ 10 $ 7 Restructuring costs 24 1 9 Payments (10) (12) (5) Non-cash items (9) 1 — Balance at December 31, 2019 $ 5 $ — $ 11 Cumulative charges incurred $ 24 $ 49 $ 29 |
DEBT (TABLE)
DEBT (TABLE) | 12 Months Ended |
Dec. 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): December 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 $ 183 104 % $ 598 99 % 4.20% senior notes, net of discount and financing fees, due 2024 395 106 % 393 99 % 3.40% senior notes, net of discount and financing fees, due 2026 396 101 % 396 90 % 3.95% senior notes, net of discount and financing fees, due 2029 445 104 % — — % 7.00% senior notes, net of discount and financing fees, due 2036 367 126 % 400 112 % 4.30% senior notes, net of discount and financing fees, due 2047 588 95 % 588 76 % 4.40% senior notes, net of discount and financing fees, due 2048 390 97 % 389 77 % Accounts receivable securitization facility, maturing in 2022 (a) — — % 75 100 % Various finance leases, due through 2032 (a) (b) 26 100 % 24 100 % Term loan borrowing, maturing in 2021 (a) 200 100 % 500 100 % Other 3 n/a 8 n/a Total long-term debt 2,993 n/a 3,371 n/a Less – current portion (a) 7 100 % 9 100 % Long-term debt, net of current portion $ 2,986 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 December 31, 2019 Senior Revolving Credit Facility Receivables Securitization Facility Facility size $ 800 $ 280 Collateral capacity limitation on availability n/a — Outstanding borrowings — — Outstanding letters of credit 4 2 Availability on facility $ 796 $ 278 |
Schedule of Maturities of Long-term Debt | The aggregate maturities for all outstanding long-term debt borrowings for each of the five years following December 31, 2019 and thereafter are presented in the table below (in millions). The maturities below are the aggregate par amounts of the outstanding senior notes, borrowings from the Term Loan and finance lease liabilities: Period Maturities 2020 $ 8 2021 208 2022 190 2023 4 2024 401 2025 and beyond 2,227 Total $ 3,038 |
PENSION PLANS (TABLE)
PENSION PLANS (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Changes in Projected Benefit Obligations | The following tables provide a reconciliation of the change in the projected benefit obligation, the change in plan assets and the net amount recognized in the Consolidated Balance Sheets (in millions): December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Change in Projected Benefit Obligation Benefit obligation at beginning of period $ 891 $ 427 $ 1,318 $ 993 $ 457 $ 1,450 Service cost 5 5 10 6 6 12 Interest cost 34 13 47 34 13 47 Actuarial loss (gain) 85 42 127 (67) (18) (85) Currency loss (gain) — 13 13 — (26) (26) Benefits paid (45) (18) (63) (75) (17) (92) Settlements/curtailments (104) (7) (111) — (6) (6) Acquisition — — — — 11 11 Other — — — — 7 7 Benefit obligation at end of period $ 866 $ 475 $ 1,341 $ 891 $ 427 $ 1,318 |
Schedule of Changes in Fair Value of Plan Assets | December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Change in Plan Assets Fair value of assets at beginning of period $ 727 $ 328 $ 1,055 $ 836 $ 364 $ 1,200 Actual return on plan assets 130 50 180 (59) (8) (67) Currency gain (loss) — 11 11 — (20) (20) Company contributions 25 21 46 25 15 40 Benefits paid (45) (18) (63) (75) (17) (92) Settlements/curtailments (104) (5) (109) — (6) (6) Other — (1) (1) — — — Fair value of assets at end of period $ 733 $ 386 $ 1,119 $ 727 $ 328 $ 1,055 Funded status $ (133) $ (89) $ (222) $ (164) $ (99) $ (263) |
Schedule of Amounts Recognized in Balance Sheet | December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Amounts Recognized in the Consolidated Balance Sheets Prepaid pension cost $ — $ 11 $ 11 $ — $ 7 $ 7 Accrued pension cost – current — (2) (2) — (2) (2) Accrued pension cost – non-current (133) (98) (231) (164) (104) (268) Net amount recognized $ (133) $ (89) $ (222) $ (164) $ (99) $ (263) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts Recorded in AOCI Net actuarial loss $ (345) $ (97) $ (442) $ (392) $ (92) $ (484) |
Schedule of Assumptions Used to Determine Benefit Obligations | The following table presents weighted average assumptions used to determine benefit obligations at the measurement dates: December 31, 2019 2018 United States Plans Discount rate 3.30 % 4.25 % Expected return on plan assets 6.50 % 6.75 % Non-United States Plans Discount rate 2.24 % 3.04 % Expected return on plan assets 4.66 % 4.91 % Rate of compensation increase 3.99 % 4.14 % |
Schedule of Allocation of Plan Assets | The following table summarizes the fair values and applicable fair value hierarchy levels of United States pension plan assets (in millions): December 31, 2019 Asset Category Level 1 Level 2 Level 3 Total Equities: Domestic $ 57 $ — $ — $ 57 International 55 — — 55 Fixed income and cash equivalents: Corporate bonds 28 214 — 242 Government debt — 85 — 85 Real estate investment trusts 22 — — 22 Total United States plan assets subject to leveling $ 162 $ 299 $ — 461 Plan assets measured at NAV: Equities 130 Real assets 62 Fixed income and cash equivalents 33 Absolute return strategies 47 Total United States plan assets $ 733 December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Equities: Domestic $ 50 $ — $ — $ 50 International 52 — — 52 Fixed income and cash equivalents: Corporate bonds — 236 — 236 Government debt — 91 — 91 Real estate investment trusts 24 — — 24 Total United States plan assets subject to leveling $ 126 $ 327 $ — 453 Plan assets measured at NAV: Equities 123 Real assets 54 Fixed income and cash equivalents 53 Absolute return strategies 44 Total United States plan assets $ 727 The following table summarizes the fair values and applicable fair value hierarchy levels of non-United States pension plan assets (in millions): December 31, 2019 Asset Category Level 1 Level 2 Level 3 Total Equities $ — $ 4 $ — $ 4 Fixed income and cash equivalents: Cash and cash equivalents — 65 — 65 Corporate bonds — 13 — 13 Total non-United States plan assets subject to leveling $ — $ 82 $ — 82 Plan assets measured at NAV: Equities 71 Fixed income and cash equivalents 123 Absolute return strategies and other 110 Total non-United States plan assets $ 386 December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Equities $ — $ 4 $ — $ 4 Fixed income and cash equivalents: Cash and cash equivalents — 62 — 62 Corporate bonds — 12 — 12 Total non-United States plan assets subject to leveling $ — $ 78 $ — 78 Plan assets measured at NAV: Equities 41 Fixed income and cash equivalents 109 Absolute return strategies 100 Total non-United States plan assets $ 328 |
Pension Plans, Defined Benefit | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | The following table presents information about the projected benefit obligation, accumulated benefit obligation (ABO) and plan assets of the Company’s pension plans (in millions): December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Plans with ABO in excess of fair value of plan assets: Projected benefit obligation $ 866 $ 300 $ 1,166 $ 891 $ 269 $ 1,160 Accumulated benefit obligation $ 866 $ 295 $ 1,161 $ 891 $ 265 $ 1,156 Fair value of plan assets $ 733 $ 205 $ 938 $ 727 $ 169 $ 896 Plans with fair value of assets in excess of ABO: Projected benefit obligation $ — $ 175 $ 175 $ — $ 158 $ 158 Accumulated benefit obligation $ — $ 159 $ 159 $ — $ 140 $ 140 Fair value of plan assets $ — $ 181 $ 181 $ — $ 159 $ 159 Summary of all plans: Total projected benefit obligation $ 866 $ 475 $ 1,341 $ 891 $ 427 $ 1,318 Total accumulated benefit obligation $ 866 $ 454 $ 1,320 $ 891 $ 405 $ 1,296 Total fair value of plan assets $ 733 $ 386 $ 1,119 $ 727 $ 328 $ 1,055 |
Schedule of Net Benefit Costs | The following table presents the components of net periodic pension cost (in millions): Twelve Months Ended December 31, 2019 2018 2017 Service cost $ 10 $ 12 $ 12 Interest cost 47 47 55 Expected return on plan assets (68) (73) (79) Amortization of actuarial loss 15 15 18 Settlement/curtailment 44 — 64 Net periodic pension cost $ 48 $ 1 $ 70 |
Schedule of Assumptions Used to Determine Net Benefit Cost | The following table presents weighted-average assumptions used to determine net periodic pension costs for the periods noted: Twelve Months Ended December 31, 2019 2018 2017 United States Plans Discount rate 4.25 % 3.55 % 3.95 % Expected return on plan assets 6.75 % 6.75 % 6.75 % Rate of compensation increase N/A (a) N/A (a) N/A (a) Non-United States Plans Discount rate 3.04 % 2.88 % 3.14 % Expected return on plan assets 4.91 % 5.22 % 5.92 % Rate of compensation increase 4.14 % 4.29 % 4.25 % (a) Not applicable due to changes in plan made on August 1, 2009 that were effective beginning January 1, 2010. |
Schedule of Expected Benefit Payments | The following table shows estimated future benefit payments from the Company’s pension plans (in millions): Year Estimated Benefit Payments 2020 $ 76 2021 $ 75 2022 $ 75 2023 $ 75 2024 $ 75 2025-2029 $ 390 |
United States | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Allocation of Plan Assets | December 31, 2019 Asset Category Level 1 Level 2 Level 3 Total Equities: Domestic $ 57 $ — $ — $ 57 International 55 — — 55 Fixed income and cash equivalents: Corporate bonds 28 214 — 242 Government debt — 85 — 85 Real estate investment trusts 22 — — 22 Total United States plan assets subject to leveling $ 162 $ 299 $ — 461 Plan assets measured at NAV: Equities 130 Real assets 62 Fixed income and cash equivalents 33 Absolute return strategies 47 Total United States plan assets $ 733 |
Foreign Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Allocation of Plan Assets | December 31, 2019 Asset Category Level 1 Level 2 Level 3 Total Equities $ — $ 4 $ — $ 4 Fixed income and cash equivalents: Cash and cash equivalents — 65 — 65 Corporate bonds — 13 — 13 Total non-United States plan assets subject to leveling $ — $ 82 $ — 82 Plan assets measured at NAV: Equities 71 Fixed income and cash equivalents 123 Absolute return strategies and other 110 Total non-United States plan assets $ 386 December 31, 2018 Asset Category Level 1 Level 2 Level 3 Total Equities $ — $ 4 $ — $ 4 Fixed income and cash equivalents: Cash and cash equivalents — 62 — 62 Corporate bonds — 12 — 12 Total non-United States plan assets subject to leveling $ — $ 78 $ — 78 Plan assets measured at NAV: Equities 41 Fixed income and cash equivalents 109 Absolute return strategies 100 Total non-United States plan assets $ 328 |
POSTEMPLOYMENT AND POSTRETIRE_2
POSTEMPLOYMENT AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Changes in Projected Benefit Obligations | The following tables provide a reconciliation of the change in the projected benefit obligation, the change in plan assets and the net amount recognized in the Consolidated Balance Sheets (in millions): December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Change in Projected Benefit Obligation Benefit obligation at beginning of period $ 891 $ 427 $ 1,318 $ 993 $ 457 $ 1,450 Service cost 5 5 10 6 6 12 Interest cost 34 13 47 34 13 47 Actuarial loss (gain) 85 42 127 (67) (18) (85) Currency loss (gain) — 13 13 — (26) (26) Benefits paid (45) (18) (63) (75) (17) (92) Settlements/curtailments (104) (7) (111) — (6) (6) Acquisition — — — — 11 11 Other — — — — 7 7 Benefit obligation at end of period $ 866 $ 475 $ 1,341 $ 891 $ 427 $ 1,318 |
Schedule of Amounts Recognized in Balance Sheet | December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Amounts Recognized in the Consolidated Balance Sheets Prepaid pension cost $ — $ 11 $ 11 $ — $ 7 $ 7 Accrued pension cost – current — (2) (2) — (2) (2) Accrued pension cost – non-current (133) (98) (231) (164) (104) (268) Net amount recognized $ (133) $ (89) $ (222) $ (164) $ (99) $ (263) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts Recorded in AOCI Net actuarial loss $ (345) $ (97) $ (442) $ (392) $ (92) $ (484) |
Schedule of Assumptions Used to Determine Benefit Obligations | The following table presents weighted average assumptions used to determine benefit obligations at the measurement dates: December 31, 2019 2018 United States Plans Discount rate 3.30 % 4.25 % Expected return on plan assets 6.50 % 6.75 % Non-United States Plans Discount rate 2.24 % 3.04 % Expected return on plan assets 4.66 % 4.91 % Rate of compensation increase 3.99 % 4.14 % |
Other Postretirement Benefits Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Changes in Projected Benefit Obligations | The following table provides a reconciliation of the change in the projected benefit obligation and the net amount recognized in the Consolidated Balance Sheets for the years ended December 31, 2019 and 2018 (in millions): December 31, 2019 December 31, 2018 U.S. Non-U.S. Total U.S. Non-U.S. Total Change in Projected Benefit Obligation Benefit obligation at beginning of period $ 183 $ 12 $ 195 $ 216 $ 14 $ 230 Service cost 1 — 1 1 — 1 Interest cost 7 1 8 8 — 8 Actuarial (gain)/loss (7) 2 (5) (25) — (25) Currency loss — — — — (1) (1) Plan amendments (1) — (1) (2) — (2) Benefits paid (14) (1) (15) (15) (1) (16) Benefit obligation at end of period $ 169 $ 14 $ 183 $ 183 $ 12 $ 195 Funded status $ (169) $ (14) $ (183) $ (183) $ (12) $ (195) |
Schedule of Amounts Recognized in Balance Sheet | Amounts Recognized in the Consolidated Balance Sheets Accrued benefit obligation – current $ (15) $ (1) $ (16) $ (17) $ — $ (17) Accrued benefit obligation – non-current (154) (13) (167) (166) (12) $ (178) Net amount recognized $ (169) $ (14) $ (183) $ (183) $ (12) $ (195) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts Recorded in AOCI Net actuarial gain $ 48 $ 3 $ 51 $ 49 $ 5 $ 54 Net prior service credit 6 — 6 9 — 9 Net amount recognized $ 54 $ 3 $ 57 $ 58 $ 5 $ 63 |
Schedule of Assumptions Used to Determine Benefit Obligations | The following table presents the discount rates used to determine the benefit obligations: December 31, 2019 2018 United States plans 3.10 % 4.15 % Non-United States plans 3.84 % 4.59 % |
Schedule of Net Benefit Costs | The following table presents the components of net periodic postretirement benefit cost (in millions): Twelve Months Ended December 31, 2019 2018 2017 Service cost $ 1 $ 1 $ 2 Interest cost 8 8 9 Amortization of prior service credit (4) (4) (4) Amortization of actuarial gain (8) (6) (3) Net periodic postretirement benefit (income)/cost $ (3) $ (1) $ 4 |
Schedule of Assumptions Used to Determine Net Benefit Cost | The following table presents the discount rates used to determine net periodic postretirement benefit cost: Twelve Months Ended December 31, 2019 2018 2017 United States plans 4.15 % 3.45 % 3.80 % Non-United States plans 4.59 % 4.56 % 6.78 % |
Schedule of Health Care Cost Trend Rates | The following table presents health care cost trend rates used to determine net periodic postretirement benefit cost, as well as information regarding the ultimate rate and the year in which the ultimate rate is reached: Twelve Months Ended December 31, 2019 2018 2017 United States plans: Initial rate at end of year 6.50 % 6.75 % 6.56 % Ultimate rate 5.00 % 5.00 % 5.00 % Year in which ultimate rate is reached 2026 2026 2025 Non-United States plans: Initial rate at end of year 5.45 % 5.40 % 5.73 % Ultimate rate 5.45 % 5.40 % 5.49 % Year in which ultimate rate is reached 2019 2019 2019 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | To illustrate, a one-percentage point change in the December 31, 2019 assumed health care cost trend rate would have the following effects (in millions): 1-Percentage Point Increase Decrease Increase (decrease) in total service cost and interest cost components of net periodic postretirement benefit cost $ — $ — Increase (decrease) of accumulated postretirement benefit obligation $ 4 $ (3) |
Schedule of Expected Benefit Payments | The following table shows estimated future benefit payments from the Company’s postretirement benefit plans (in millions): Year Estimated Benefit Payments 2020 $ 16 2021 $ 15 2022 $ 15 2023 $ 14 2024 $ 14 2025-2029 $ 60 |
STOCK COMPENSATION (TABLE)
STOCK COMPENSATION (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Expense | Stock-based compensation expense included in Marketing and administrative expenses in the accompanying Consolidated Statements of Earnings is as follows (in millions): Twelve Months Ended December 31, 2019 2018 2017 Total stock-based compensation expense $ 39 $ 47 $ 44 Income tax benefit recognized on stock-based compensation expense $ 7 $ 24 $ 26 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the Company’s stock option activity in 2019: Weighted-Average Number of Options Exercise Price Remaining Intrinsic Value (in millions) Outstanding, January 1, 2019 478,875 $ 37.18 4.00 $ 3 Exercised (64,075) 33.26 Outstanding, December 31, 2019 414,800 $ 37.79 3.06 $ 11 Exercisable, December 31, 2019 414,800 $ 37.79 3.06 $ 11 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | The total intrinsic value of stock options exercised and the resulting tax benefits received were as follows (in millions): Twelve Months Ended December 31, 2019 2018 2017 Cash received upon exercise of stock option awards $ 2 $ 1 $ 15 Income tax benefit received for stock option awards exercised $ — $ — $ 7 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table shows a summary of the Company’s RSU plans: Number of Weighted- Balance at January 1, 2019 1,479,374 $ 52.30 Granted 542,693 53.10 Vested (390,673) 52.57 Forfeited/canceled (115,688) 61.68 Balance at December 31, 2019 1,515,706 $ 51.70 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest | The following table shows a summary of the Company's PSU plans: Number of Weighted- Average Grant Date Fair Value Balance as of January 1, 2019 360,977 $ 75.23 Granted 205,350 58.40 Vested (169,052) 43.04 Forfeited/canceled (84,550) 68.56 Balance as of December 31, 2019 312,725 $ 69.23 |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity | The following table shows a summary of employee purchase activity under the ESPP: Twelve Months Ended December 31, 2019 2018 2017 Total shares purchased by employees 393,230 295,407 258,504 Average purchase price $ 41.33 $ 48.93 $ 48.48 |
CHANGES IN ACCUMULATED OTHER _2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE DEFICIT (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income (deficit) (in millions): Twelve Months Ended December 31, 2019 2018 Currency Translation Adjustment Beginning balance $ (306) $ (183) Net investment hedge amounts classified into AOCI, net of tax 13 14 Gain/(loss) on foreign currency translation 11 (137) Other comprehensive income/(loss), net of tax 24 (123) Ending balance $ (282) $ (306) Pension and Other Postretirement Adjustment Beginning balance $ (350) $ (331) Amounts reclassified from AOCI to net earnings, net of tax (a) 35 4 Amounts classified into AOCI, net of tax (11) (23) Other comprehensive income/(loss), net of tax 24 (19) Ending balance $ (326) $ (350) Hedging Adjustment Beginning balance $ — $ — Amounts reclassified from AOCI to net earnings, net of tax (b) 3 (1) Amounts classified into AOCI, net of tax (5) 1 Other comprehensive (loss), net of tax (2) — Ending balance $ (2) $ — Total AOCI ending balance $ (610) $ (656) (a) These AOCI components are included in the computation of total Pension and Other Postretirement cost and are recorded in Non-operating expense (income). See Notes 14 and 15 for additional information. (b) Amounts reclassified from (loss)/gain on cash flow hedges are reclassified from AOCI to income when the hedged item affects earnings and is recognized in Cost of sales. See Note 5 for additional information. |
EARNINGS PER SHARE (TABLE)
EARNINGS PER SHARE (TABLE) | 12 Months Ended |
Dec. 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): Twelve Months Ended December 31, 2019 2018 2017 Net earnings attributable to Owens Corning $ 405 $ 545 $ 289 Weighted-average number of shares outstanding used for basic earnings per share 109.2 110.4 111.5 Non-vested restricted and performance shares 0.7 0.8 1.5 Options to purchase common stock 0.2 0.2 0.2 Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share 110.1 111.4 113.2 Earnings per common share attributable to Owens Corning common stockholders: Basic $ 3.71 $ 4.94 $ 2.59 Diluted $ 3.68 $ 4.89 $ 2.55 |
INCOME TAXES (TABLE)
INCOME TAXES (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The following table summarizes our Earnings before taxes and Income tax expense (in millions): Twelve Months Ended December 31, 2019 2018 2017 Earnings before taxes: United States $ 315 $ 411 $ 342 Foreign 275 293 217 Total $ 590 $ 704 $ 559 |
Schedule of Components of Income Tax Expense (Benefit), By Jurisdiction | Income tax expense: Current United States $ (4) $ (10) $ (2) State and local 11 6 5 Foreign 60 19 83 Total current 67 15 86 Deferred United States 112 114 196 State and local 11 12 3 Foreign (4) 15 (16) Total deferred 119 141 183 Total income tax expense $ 186 $ 156 $ 269 |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation between the United States federal statutory rate and the Company’s effective income tax rate from continuing operations is: Twelve Months Ended December 31, 2019 2018 2017 United States federal statutory rate 21 % 21 % 35 % State and local income taxes, net of federal tax benefit 3 2 2 Foreign tax rate differential — — (5) U.S. tax expense on foreign earnings 1 2 49 Legislative tax rate changes 2 — (9) Foreign tax credits — — (29) Valuation allowance 3 2 3 Uncertain tax positions and settlements — (5) 1 Excess tax benefits related to stock compensation — (2) (1) Other, net 1 2 2 Effective tax rate 31 % 22 % 48 % |
Schedule of Deferred Tax Assets and Liabilities | The cumulative temporary differences giving rise to the deferred tax assets and liabilities are as follows (in millions): December 31, 2019 December 31, 2018 Deferred Tax Assets Deferred Tax Liabilities Deferred Tax Assets Deferred Tax Liabilities Other employee benefits $ 76 $ — $ 87 $ — Pension plans 54 — 66 — Operating loss and tax credit carryforwards 195 — 255 — Depreciation — 247 — 259 Leases - Right of Use Assets — 49 — — Leases - Liability 49 — — — Amortization — 388 — 395 Foreign tax credits 97 — 161 — State and local taxes 3 — 3 — Other 76 — 61 — Subtotal 550 684 633 654 Valuation allowances (92) — (78) — Total deferred taxes $ 458 $ 684 $ 555 $ 654 |
Summary of Operating Loss and Tax Credit Carryforwards | The following table summarizes the amount and expiration dates of our deferred tax assets related to operating loss and credit carryforwards at December 31, 2019 (in millions): Expiration Dates Amounts U.S. federal loss carryforwards 2036 - 2037 $ 27 U.S. state loss carryforwards (a) 2020 – 2034 47 Foreign loss and tax credit carryforwards Indefinite 30 Foreign loss and tax credit carryforwards (a) 2020 – 2037 61 Other U.S. federal and state tax credits 2028 – 2034 30 Total operating loss and tax credit carryforwards $ 195 U.S foreign tax credits 2027 $ 97 (a) As of December 31, 2019, $16 million of U.S. state and $6 million of foreign deferred tax assets related to loss carryforwards that are set to expire over the next three years. |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in millions): Twelve Months Ended December 31, 2019 2018 2017 Balance at beginning of period $ 84 $ 90 $ 98 Tax positions related to the current year Gross additions — 6 1 Tax positions related to prior years Gross additions 1 36 13 Gross reductions — (37) (11) Settlements (1) (5) (12) Expiration of statute of limitations (5) (4) — Impact of currency changes — (2) 1 Balance at end of period $ 79 $ 84 $ 90 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (unaudited) (TABLE) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | Select quarterly financial information is presented in the tables below for the quarterly periods (in millions, except per share amounts): Quarter First Second Third Fourth 2019 Net sales $ 1,667 $ 1,918 $ 1,883 $ 1,692 Gross margin $ 325 $ 440 $ 461 $ 383 Income tax expense $ 39 $ 59 $ 61 $ 27 Net earnings attributable to Owens Corning $ 44 $ 138 $ 150 $ 73 BASIC EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS $ 0.40 $ 1.27 $ 1.37 $ 0.67 DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS $ 0.40 $ 1.26 $ 1.36 $ 0.66 Quarter First Second Third Fourth 2018 Net sales $ 1,691 $ 1,824 $ 1,818 $ 1,724 Gross margin $ 355 $ 418 $ 448 $ 411 Income tax expense $ 11 $ 49 $ 67 $ 29 Net earnings attributable to Owens Corning $ 92 $ 121 $ 161 $ 171 BASIC EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS $ 0.83 $ 1.09 $ 1.46 $ 1.56 DILUTED EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS $ 0.82 $ 1.08 $ 1.45 $ 1.55 |
BUSINESS AND SUMMARY OF SIGNI_4
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (DETAIL) $ / shares in Units, $ in Millions | Feb. 06, 2020$ / shares | Dec. 31, 2019USD ($)segment$ / shares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares |
Property Plant And Equipment [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Dividend (dollars per share) | $ / shares | $ 0.90 | $ 0.85 | $ 0.81 | |
Revenue, remaining performance obligation | $ 3 | |||
Marketing and advertising expense | 117 | $ 120 | $ 108 | |
Restricted cash and cash equivalents | 7 | |||
Investments in affiliates | $ 51 | 51 | ||
Precious metals depletion, percentage | 3.00% | |||
Foreign currency transaction gain (loss) | $ 12 | $ 7 | $ (4) | |
Subsequent Event | ||||
Property Plant And Equipment [Line Items] | ||||
Dividend (dollars per share) | $ / shares | $ 0.24 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2036-01-01 | Minimum | ||||
Property Plant And Equipment [Line Items] | ||||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 16 years | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2040-01-01 | Maximum | ||||
Property Plant And Equipment [Line Items] | ||||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 20 years |
BUSINESS AND SUMMARY OF SIGNI_5
BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (PROPERTY, PLANT AND EQUIPMENT USEFUL LIFE) (DETAIL) | 12 Months Ended |
Dec. 31, 2019 | |
Building and Building Improvements | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 15 years |
Building and Building Improvements | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 40 years |
Furnaces | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 4 years |
Furnaces | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 15 years |
Technology Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 5 years |
Technology Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 10 years |
Equipment | Minimum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 5 years |
Equipment | Maximum | |
Property Plant And Equipment [Line Items] | |
Property, plant and equipment estimated useful lives | 20 years |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (DETAIL) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
SEGMENT INFORMATION - Net Sales
SEGMENT INFORMATION - Net Sales by Reportable Segments and Geographic Region (DETAIL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 7,160 | $ 7,057 | $ 6,384 |
Composites | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,059 | 2,041 | 2,068 |
Insulation | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,668 | 2,720 | 2,001 |
Roofing | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,634 | 2,492 | 2,553 |
Total Segments | |||
Segment Reporting Information [Line Items] | |||
Revenues | 7,361 | 7,253 | 6,622 |
Corporate Eliminations | |||
Segment Reporting Information [Line Items] | |||
Revenues | (201) | (196) | (238) |
United States | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4,776 | 4,647 | 4,495 |
Europe | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,209 | 1,209 | 661 |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Revenues | 664 | 656 | 675 |
Other Geographical | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 511 | $ 545 | $ 553 |
SEGMENT INFORMATION - EBIT by S
SEGMENT INFORMATION - EBIT by Segment (DETAIL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Restructuring costs | $ (28) | $ (22) | $ (48) |
Acquisition-related costs | 0 | (16) | (15) |
Recognition of InterWrap inventory fair value step-up | 0 | (2) | (5) |
Litigation settlement gain, net of legal fees | (37) | (36) | (67) |
Environmental liability charges | (4) | 0 | (15) |
General corporate expense and other | (104) | (114) | (148) |
Total Corporate, other and eliminations | 753 | 821 | 737 |
Composites | |||
Segment Reporting Information [Line Items] | |||
Total Corporate, other and eliminations | 247 | 251 | 291 |
Insulation | |||
Segment Reporting Information [Line Items] | |||
Total Corporate, other and eliminations | 230 | 290 | 177 |
Roofing | |||
Segment Reporting Information [Line Items] | |||
Total Corporate, other and eliminations | 455 | 434 | 535 |
Total Segments | |||
Segment Reporting Information [Line Items] | |||
Total Corporate, other and eliminations | 932 | 975 | 1,003 |
Corporate Eliminations | |||
Segment Reporting Information [Line Items] | |||
Total Corporate, other and eliminations | (179) | (154) | (266) |
Other Expense | |||
Segment Reporting Information [Line Items] | |||
Restructuring costs | (6) | ||
Litigation settlement gain, net of legal fees | 0 | 0 | (29) |
Pension Plan | |||
Segment Reporting Information [Line Items] | |||
Pension settlement losses | (44) | 0 | (64) |
Foreign Plan | Pension Plan | |||
Segment Reporting Information [Line Items] | |||
Pension settlement losses | $ (43) | $ 0 | $ (64) |
SEGMENT INFORMATION - Total Ass
SEGMENT INFORMATION - Total Assets and Property, Plant and Equipment by Geographic Region (DETAIL) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 10,006 | $ 9,771 |
Cash and cash equivalents | 172 | 78 |
Noncurrent deferred income taxes | 46 | 43 |
Investments in affiliates | 51 | 51 |
Assets held for sale | 1 | 3 |
Corporate property, plant and equipment, net | 507 | 459 |
Property, plant and equipment, net | 3,855 | 3,811 |
Composites | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 2,470 | 2,480 |
Insulation | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 4,975 | 4,907 |
Roofing | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 1,784 | 1,750 |
Total Segments | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 9,229 | 9,137 |
United States | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 2,204 | 2,166 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 762 | 779 |
Asia Pacific | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 601 | 567 |
Other Geographical | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 288 | $ 299 |
SEGMENT INFORMATION - Provision
SEGMENT INFORMATION - Provision For Depreciation and Amortization (DETAIL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 457 | $ 433 | $ 371 |
Charges related to cost reduction actions | 28 | 22 | 48 |
Composites | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 154 | 147 | 144 |
Insulation | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 194 | 186 | 124 |
Roofing | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 54 | 51 | 50 |
Total Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 402 | 384 | 318 |
General Corporate | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 55 | 49 | 53 |
Accelerated Depreciation | Cost of Sales | |||
Segment Reporting Information [Line Items] | |||
Charges related to cost reduction actions | $ 9 | $ 10 | $ 17 |
SEGMENT INFORMATION - Additions
SEGMENT INFORMATION - Additions to Property, Plant and Equipment (DETAIL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, additions | $ 451 | $ 542 | $ 402 |
Composites | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, additions | 123 | 154 | 148 |
Insulation | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, additions | 210 | 240 | 151 |
Roofing | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, additions | 56 | 91 | 66 |
Total Segments | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, additions | 389 | 485 | 365 |
General Corporate | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, additions | $ 62 | $ 57 | $ 37 |
REVENUE - Narrative (DETAIL)
REVENUE - Narrative (DETAIL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Accumulated earnings | $ 2,319 | $ 2,013 | |
Inventories | 1,033 | 1,072 | |
Contract with customer, liability | 60 | $ 53 | |
Contract with customer, liability, revenue recognized | $ 17 | ||
Accounting Standards Update 2014-09 | |||
Disaggregation of Revenue [Line Items] | |||
Accumulated earnings | $ 2 | ||
Inventories | $ 2 |
REVENUE - Disaggregated Revenue
REVENUE - Disaggregated Revenue (DETAIL) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 1,692 | $ 1,883 | $ 1,918 | $ 1,667 | $ 1,724 | $ 1,818 | $ 1,824 | $ 1,691 | $ 7,160 | $ 7,057 | $ 6,384 |
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,209 | 1,209 | |||||||||
Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 664 | 656 | |||||||||
Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 511 | 545 | |||||||||
Composites | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,059 | 2,041 | |||||||||
Composites | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 572 | 590 | |||||||||
Composites | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 475 | 464 | |||||||||
Composites | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 129 | 126 | |||||||||
Insulation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,668 | 2,720 | |||||||||
Insulation | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 625 | 605 | |||||||||
Insulation | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 176 | 178 | |||||||||
Insulation | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 297 | 322 | |||||||||
Roofing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,634 | 2,492 | |||||||||
Roofing | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 13 | 14 | |||||||||
Roofing | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 13 | 15 | |||||||||
Roofing | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 90 | 103 | |||||||||
Intersegment Eliminations | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | (201) | (196) | |||||||||
Intersegment Eliminations | Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | (1) | 0 | |||||||||
Intersegment Eliminations | Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 0 | (1) | |||||||||
Intersegment Eliminations | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | (5) | (6) | |||||||||
Residential | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,376 | 3,275 | |||||||||
Residential | Composites | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 269 | 263 | |||||||||
Residential | Insulation | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 927 | 990 | |||||||||
Residential | Roofing | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,375 | 2,199 | |||||||||
Residential | Intersegment Eliminations | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | (195) | (177) | |||||||||
Commercial and Industrial Sector | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,400 | 1,372 | |||||||||
Commercial and Industrial Sector | Composites | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 614 | 598 | |||||||||
Commercial and Industrial Sector | Insulation | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 643 | 625 | |||||||||
Commercial and Industrial Sector | Roofing | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 143 | 161 | |||||||||
Commercial and Industrial Sector | Intersegment Eliminations | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 0 | $ (12) |
INVENTORIES (DETAIL)
INVENTORIES (DETAIL) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 715 | $ 730 |
Materials and supplies | 318 | 342 |
Total inventories | $ 1,033 | $ 1,072 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (BALANCE SHEET) (DETAIL) - USD ($) $ in Millions | Dec. 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, Net | $ 12 | $ 9 |
Other current assets | Not Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Net | 9 | 1 |
Other non-current assets | Designated as Hedging Instrument | Cash Flow Hedging | Energy Related Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Net | 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, Net | 4 | 17 |
Other liabilities | Designated as Hedging Instrument | Net Investment Hedging | Energy Related Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Net | ||
Current liabilities | Designated as Hedging Instrument | Cash Flow Hedging | Energy Related Derivative | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liability, Fair Value, Net | 3 | 1 |
Current liabilities | Not Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Fair Value, Net | ||
Derivative Liability, Fair Value, Net | $ 1 | $ 8 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS (INCOME STMT) (DETAIL) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cost of Sales | Designated as Hedging Instrument | Energy Related Derivative | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of loss/(gain) reclassified from AOCI into earnings | $ (4) | $ 2 | $ 1 | |
Other Expense | Designated as Hedging Instrument | Energy Related Derivative | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of loss recognized in earnings (ineffective portion) | 0 | 0 | (2) | |
Other Expense | Not Designated as Hedging Instrument | Foreign Exchange Contract | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of loss recognized in earnings (ineffective portion) | 35 | 55 | (5) | |
Interest Expense | Designated as Hedging Instrument | Interest Rate Swap | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of gain recognized in earnings on derivative amounts excluded from effectiveness testing | (13) | $ (12) | $ 0 | |
Net Investment Hedging | Cross Currency Interest Rate Contract | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of loss recognized in earnings (ineffective portion) | $ 18 | 18 | ||
Cash Flow Hedging | Energy Related Derivative | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of loss recognized in earnings (ineffective portion) | $ (2) | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS NARRATIVE (DETAIL) MMBTU in Millions, $ in Millions | Dec. 31, 2019USD ($)MMBTU |
Derivative [Line Items] | |
Notional amount, energy measure | MMBTU | 2 |
Dollars | Cross Currency Interest Rate Contract | |
Derivative [Line Items] | |
Notional amount | $ 516 |
Euros | Foreign Exchange Forward | |
Derivative [Line Items] | |
Notional amount | 82 |
United States | Foreign Exchange Forward | |
Derivative [Line Items] | |
Notional amount | $ 704 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (ROLLFORWARD) (DETAIL) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 1,949 |
Foreign currency translation | (17) |
Ending Balance | 1,932 |
Composites | |
Goodwill [Roll Forward] | |
Beginning Balance | 57 |
Foreign currency translation | 0 |
Ending Balance | 57 |
Insulation | |
Goodwill [Roll Forward] | |
Beginning Balance | 1,495 |
Foreign currency translation | (16) |
Ending Balance | 1,479 |
Roofing | |
Goodwill [Roll Forward] | |
Beginning Balance | 397 |
Foreign currency translation | (1) |
Ending Balance | $ 396 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (DETAIL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 2,075 | $ 2,079 | |
Accumulated Amortization | (354) | (300) | |
Net Carrying Amount | 1,721 | 1,779 | |
Goodwill | 1,932 | 1,949 | |
Amortization of intangible assets | 54 | 49 | $ 31 |
Trademarks | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,139 | 1,144 | |
Accumulated Amortization | 0 | 0 | |
Net Carrying Amount | 1,139 | 1,144 | |
Customer Relationships | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 550 | 554 | |
Accumulated Amortization | (167) | (138) | |
Net Carrying Amount | 383 | 416 | |
Technology | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 319 | 321 | |
Accumulated Amortization | (152) | (134) | |
Net Carrying Amount | 167 | 187 | |
Other | |||
Intangible Assets [Line Items] | |||
Gross Carrying Amount | 67 | 60 | |
Accumulated Amortization | (35) | (28) | |
Net Carrying Amount | $ 32 | $ 32 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS (ESTIMATED AMORTIZATION EXPENSE) (DETAIL) $ in Millions | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 48 |
2021 | 48 |
2022 | 45 |
2023 | 42 |
2024 | $ 39 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (DETAIL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 6,695 | $ 6,386 | |
Accumulated depreciation | (2,840) | (2,575) | |
Property, plant and equipment, net | $ 3,855 | $ 3,811 | |
Precious metals percentage | 10.00% | 11.00% | |
Depreciation | $ 403 | $ 384 | $ 340 |
Accelerated depreciation related to cost reduction actions | 9 | 10 | $ 17 |
Land | |||
Property Plant And Equipment [Line Items] | |||
Property, plant, and equipment, gross | 221 | 224 | |
Buildings and Leasehold Improvements | |||
Property Plant And Equipment [Line Items] | |||
Property, plant, and equipment, gross | 1,186 | 1,091 | |
Machinery and Equipment | |||
Property Plant And Equipment [Line Items] | |||
Property, plant, and equipment, gross | 4,978 | 4,628 | |
Construction in Progress | |||
Property Plant And Equipment [Line Items] | |||
Property, plant, and equipment, gross | $ 310 | $ 443 |
ACQUISITIONS (DETAIL)
ACQUISITIONS (DETAIL) - USD ($) $ in Millions | Feb. 05, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Payments | $ 0 | $ 1,143 | $ 570 | |
Revenues | 7,160 | $ 7,057 | $ 6,384 | |
Paroc Group | ||||
Business Acquisition [Line Items] | ||||
Payments | $ 1,121 | |||
Revenues | $ 38 |
LEASES - Narrative (DETAIL)
LEASES - Narrative (DETAIL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 203 | $ 237 | |
Capital leases, assets | $ 16 | ||
Operating lease cost | 81 | ||
Short-term lease cost | 10 | ||
Right-of-use asset obtained in exchange for operating lease liability | $ 47 |
LEASES - Balance Sheet Informat
LEASES - Balance Sheet Information Related to Leases (DETAIL) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 203 | $ 237 |
Finance lease, right-of-use asset | 21 | |
Total lease assets | 224 | |
Operating lease, liability, current | 66 | |
Finance lease, liability, current | 7 | |
Non-current operating lease liabilities | 138 | |
Non-current finance leases | 19 | |
Total lease liabilities | $ 230 |
LEASES - Supplemental Informati
LEASES - Supplemental Information Related to Leases (DETAIL) | Dec. 31, 2019 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term | 4 years |
Finance lease, weighted average remaining lease term | 3 years 10 months 24 days |
Operating lease, weighted average discount rate, percent | 3.30% |
Financing lease, weighted average discount rate, percent | 6.29% |
LEASES - Operating and Financin
LEASES - Operating and Financing Lease Liability Maturity (DETAIL) $ in Millions | Dec. 31, 2019USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2020 | $ 73 |
2021 | 60 |
2022 | 39 |
2023 | 22 |
2024 | 11 |
2025 and beyond | 17 |
Total minimum lease payments | 222 |
Less: implied interest | 18 |
Present value of future minimum lease payments | 204 |
Less: current lease obligations | 66 |
Long-term lease obligations | 138 |
Finance Lease, Liability, Payment, Due [Abstract] | |
2020 | 8 |
2021 | 8 |
2022 | 6 |
2023 | 4 |
2024 | 2 |
2025 and beyond | 1 |
Total minimum lease payments | 29 |
Less: implied interest | 3 |
Present value of future minimum lease payments | 26 |
Less: current lease obligations | 7 |
Long-term lease obligations | $ 19 |
LEASES - Payments for Operating
LEASES - Payments for Operating and Financing Leases (DETAIL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity | |||
2019 | $ 83 | ||
2020 | 64 | ||
2021 | 47 | ||
2022 | 31 | ||
2023 | 18 | ||
2024 and beyond | 27 | ||
Operating lease rent expense | $ 106 | $ 87 | $ 79 |
TOTAL CURRENT LIABILITIES (DETA
TOTAL CURRENT LIABILITIES (DETAIL) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts payable | $ 815 | $ 851 |
Payroll, vacation pay and incentive compensation | 172 | 157 |
Current operating lease liabilities | 66 | 0 |
Other | 276 | 270 |
Accounts payable and accrued liabilities | $ 1,329 | $ 1,278 |
WARRANTIES (DETAIL)
WARRANTIES (DETAIL) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 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 | 21 | 20 |
Settlements of warranty claims | (17) | (15) |
Product warranty accrual, ending balance | $ 64 | $ 60 |
RESTRUCTURING AND ACQUISITION_3
RESTRUCTURING AND ACQUISITION-RELATED COSTS (DETAIL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Charges related to cost reduction actions | $ 28 | $ 22 | $ 48 |
Employee Severance | |||
Restructuring Reserve Roll Forward | |||
Ending Balance | 16 | ||
Non-current Severance | |||
Restructuring Reserve Roll Forward | |||
Ending Balance | 4 | ||
Current Severance | |||
Restructuring Reserve Roll Forward | |||
Ending Balance | 12 | ||
Cost of Sales | Accelerated Depreciation | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to cost reduction actions | 9 | 10 | 17 |
Cost of Sales | Additional Exit Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to cost reduction actions | 6 | 7 | 3 |
Other Expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to cost reduction actions | 6 | ||
Other Expense | Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to cost reduction actions | 13 | 4 | 27 |
Other Expense | Additional Exit Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to cost reduction actions | (1) | 1 | 1 |
Non-Operating Expenses | Additional Exit Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Charges related to cost reduction actions | 1 | 0 | $ 0 |
Insulation Network Optimization Restructuring | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected cost remaining | 6 | ||
Restructuring Reserve Roll Forward | |||
Beginning Balance | 0 | ||
Restructuring costs | 24 | ||
Payments | (10) | ||
Non-cash items | (9) | ||
Ending Balance | 5 | 0 | |
Cumulative charges incurred | 24 | ||
Insulation Network Optimization Restructuring | Employee Severance | |||
Restructuring Reserve Roll Forward | |||
Restructuring costs | 8 | ||
Insulation Network Optimization Restructuring | Accelerated Depreciation | |||
Restructuring Reserve Roll Forward | |||
Restructuring costs | 9 | ||
Insulation Network Optimization Restructuring | Additional Exit Costs | |||
Restructuring Reserve Roll Forward | |||
Restructuring costs | 7 | ||
Paroc and Pittsburgh Corning | |||
Restructuring Reserve Roll Forward | |||
Beginning Balance | 7 | ||
Restructuring costs | 9 | ||
Payments | (5) | ||
Non-cash items | 0 | ||
Ending Balance | 11 | 7 | |
Cumulative charges incurred | 29 | ||
Paroc and Pittsburgh Corning | Employee Severance | |||
Restructuring Reserve Roll Forward | |||
Restructuring costs | 6 | ||
Paroc and Pittsburgh Corning | Additional Exit Costs | |||
Restructuring Reserve Roll Forward | |||
Restructuring costs | 3 | ||
Cost Reductions Actions 2017 | |||
Restructuring Cost and Reserve [Line Items] | |||
Gain on termination of lease | 3 | ||
Restructuring Reserve Roll Forward | |||
Beginning Balance | 10 | ||
Restructuring costs | 1 | ||
Payments | (12) | ||
Non-cash items | 1 | ||
Ending Balance | 0 | $ 10 | |
Cumulative charges incurred | 49 | ||
Cost Reductions Actions 2017 | Employee Severance | |||
Restructuring Reserve Roll Forward | |||
Restructuring costs | 1 | ||
Cost Reductions Actions 2017 | Additional Exit Costs | |||
Restructuring Reserve Roll Forward | |||
Restructuring costs | $ 3 |
DEBT (SCHEDULE OF DEBT) (DETAIL
DEBT (SCHEDULE OF DEBT) (DETAIL) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,993,000,000 | $ 3,371,000,000 |
Notes Payable, Fair Value Disclosure, Par Value | 100.00% | 100.00% |
Other | $ 3,000,000 | $ 8,000,000 |
Less – current portion | 7,000,000 | 9,000,000 |
Long-term debt, net of current portion | 2,986,000,000 | 3,362,000,000 |
4.20% senior notes, net of discount and financing fees, due 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 183,000,000 | $ 598,000,000 |
Notes Payable, Fair Value Disclosure, Par Value | 104.00% | 99.00% |
4.20% senior notes, net of discount and financing fees, due 2024 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 395,000,000 | $ 393,000,000 |
Notes Payable, Fair Value Disclosure, Par Value | 106.00% | 99.00% |
3.40% senior notes, net of discount and financing fees, due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 396,000,000 | $ 396,000,000 |
Notes Payable, Fair Value Disclosure, Par Value | 101.00% | 90.00% |
3.95% senior notes, net of discount and financing fees, due 2029 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 445,000,000 | $ 0 |
Notes Payable, Fair Value Disclosure, Par Value | 104.00% | 0.00% |
7.00% senior notes, net of discount and financing fees, due 2036 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 367,000,000 | $ 400,000,000 |
Notes Payable, Fair Value Disclosure, Par Value | 126.00% | 112.00% |
4.30% senior notes, net of discount and financing fees, due 2047 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 588,000,000 | $ 588,000,000 |
Notes Payable, Fair Value Disclosure, Par Value | 95.00% | 76.00% |
4.40% senior notes, net of discount and financing fees, due 2048 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 390,000,000 | $ 389,000,000 |
Notes Payable, Fair Value Disclosure, Par Value | 97.00% | 77.00% |
Accounts receivable securitization facility, maturing in 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | $ 75,000,000 |
Notes Payable, Fair Value Disclosure, Par Value | 0.00% | 100.00% |
Various finance leases, due through 2032 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 26,000,000 | $ 24,000,000 |
Notes Payable, Fair Value Disclosure, Par Value | 100.00% | 100.00% |
Term loan borrowing, maturing in 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 200,000,000 | $ 500,000,000 |
Notes Payable, Fair Value Disclosure, Par Value | 100.00% | 100.00% |
DEBT (DETAIL)
DEBT (DETAIL) - USD ($) | Aug. 12, 2019 | Aug. 08, 2016 | Nov. 12, 2014 | Oct. 17, 2012 | Dec. 31, 2019 | Mar. 31, 2019 | Sep. 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 25, 2018 | Oct. 27, 2017 | Jun. 26, 2017 | Mar. 31, 2017 | Oct. 31, 2006 |
Long-Term Debt [Line Items] | |||||||||||||||
Loss on extinguishment of debt | $ 32,000,000 | $ 0 | $ 71,000,000 | ||||||||||||
Other | $ 3,000,000 | 3,000,000 | 8,000,000 | ||||||||||||
Borrowing capacity under credit facility | 800,000,000 | 800,000,000 | |||||||||||||
Current maturities | 7,000,000 | 7,000,000 | 9,000,000 | ||||||||||||
Short-term Debt [Abstract] | |||||||||||||||
Short-term debt | $ 20,000,000 | $ 20,000,000 | $ 16,000,000 | ||||||||||||
Term (in years) | 1 year | ||||||||||||||
Short term debt, weighted average interest rate | 7.80% | 7.80% | 3.00% | ||||||||||||
3.95% senior notes, net of discount and financing fees, due 2029 | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Face amount | $ 450,000,000 | ||||||||||||||
Discount | 5,000,000 | ||||||||||||||
Loss on extinguishment of debt | $ (32,000,000) | ||||||||||||||
7.00% senior notes, net of discount and financing fees, due 2036 | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Fixed interest, percentage rate | 7.00% | 7.00% | 7.00% | ||||||||||||
Face amount | $ 550,000,000 | ||||||||||||||
Repayments | 34,000,000 | $ 140,000,000 | |||||||||||||
Senior Note 2048 | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Face amount | $ 400,000,000 | ||||||||||||||
4.30% senior notes, net of discount and financing fees, due 2047 | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Fixed interest, percentage rate | 4.30% | 4.30% | |||||||||||||
Face amount | $ 600,000,000 | ||||||||||||||
3.40% senior notes, net of discount and financing fees, due 2026 | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Fixed interest, percentage rate | 3.40% | 3.40% | 3.40% | ||||||||||||
Face amount | $ 400,000,000 | ||||||||||||||
Senior Notes Due 2016 | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Repayments | $ 158,000,000 | $ 242,000,000 | $ 250,000,000 | ||||||||||||
4.20% senior notes, net of discount and financing fees, due 2024 | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Fixed interest, percentage rate | 4.20% | 4.20% | 4.20% | ||||||||||||
Face amount | 400,000,000 | ||||||||||||||
9.00% senior notes, net of discount and financing fees, due 2019 | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Fixed interest, percentage rate | 9.00% | ||||||||||||||
Repayments | $ 105,000,000 | 100,000,000 | $ 144,000,000 | ||||||||||||
4.20% senior notes, net of discount and financing fees, due 2022 | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Fixed interest, percentage rate | 4.20% | 4.20% | 4.20% | ||||||||||||
Face amount | $ 600,000,000 | ||||||||||||||
Repayments | $ 416,000,000 | ||||||||||||||
Stated rate | 4.20% | ||||||||||||||
Term Loan Commitment Two | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Borrowing capacity under credit facility | $ 600,000,000 | ||||||||||||||
Senior Revolving Credit Facility B | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Proceeds from issuance of debt | $ 600,000,000 | ||||||||||||||
Borrowing capacity under credit facility | $ 800,000,000 | $ 800,000,000 | |||||||||||||
Letter of Credit Under Receivables Purchase Agreement | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Borrowing capacity under credit facility | 280,000,000 | 280,000,000 | |||||||||||||
Current maturities | 280,000,000 | $ 280,000,000 | |||||||||||||
Long-term Debt | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Other | $ 5,000,000 | ||||||||||||||
Extinguishment of Debt | |||||||||||||||
Long-Term Debt [Line Items] | |||||||||||||||
Loss on extinguishment of debt | $ (4,000,000) |
DEBT (CREDIT FACILITY UTILIZATI
DEBT (CREDIT FACILITY UTILIZATION) (DETAIL) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Facility size | $ 800 |
Senior Revolving Credit Facility B | |
Debt Instrument [Line Items] | |
Facility size | 800 |
Outstanding borrowings | 0 |
Outstanding letters of credit | 4 |
Availability on facility | 796 |
Letter of Credit Under Receivables Purchase Agreement | |
Debt Instrument [Line Items] | |
Facility size | 280 |
Collateral capacity limitation on availability | 0 |
Outstanding borrowings | 0 |
Outstanding letters of credit | 2 |
Availability on facility | $ 278 |
DEBT (SCHEDULE OF DEBT MATURITI
DEBT (SCHEDULE OF DEBT MATURITIES) (DETAIL) $ in Millions | Dec. 31, 2019USD ($) |
Maturities of Long-term Debt [Abstract] | |
2020 | $ 8 |
2021 | 208 |
2022 | 190 |
2023 | 4 |
2024 | 401 |
2025 and beyond | 2,227 |
Total | $ 3,038 |
PENSION PLANS (DETAIL)
PENSION PLANS (DETAIL) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019USD ($)plan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-operating expense (income) | $ 34 | $ (14) | $ 60 | ||
Payment for settlement | 64 | ||||
Defined Benefit Plans, Accumulated Other Comprehensive Income (Loss), After Tax [Abstract] | |||||
Defined Benefit Plan, Target Plan Asset Allocations, Period | 20 years | ||||
Defined Benefit Plan, Target Plan Asset Allocations Range Amount | 25.00% | ||||
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||||
2020 | $ 16 | ||||
2021 | 15 | ||||
2022 | 15 | ||||
2023 | 14 | ||||
2024 | 14 | ||||
2025-2029 | 60 | ||||
Defined Contribution Plan [Abstract] | |||||
Defined contribution plans, number of plans | plan | 2 | ||||
Cost Recognized Related to Defined Benefit Plans | $ 48 | 48 | 42 | ||
Pension Plans, Defined Benefit | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit Obligation at Beginning of Period | 1,318 | 1,450 | |||
Service cost | 10 | 12 | 12 | ||
Interest cost | 47 | 47 | 55 | ||
Actuarial (gain)/loss | 127 | (85) | |||
Currency loss | 13 | (26) | |||
Benefits paid | (63) | (92) | |||
Defined Benefit Plan, Settlements / Curtailments | (111) | (6) | |||
Acquisition | 0 | 11 | |||
Other | 0 | 7 | |||
Benefit Obligation at End of Period | 1,341 | 1,318 | 1,450 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 1,055 | 1,200 | |||
Actual return on plan assets | 180 | (67) | |||
Currency gain (loss) | 11 | (20) | |||
Company contributions | 46 | 40 | |||
Benefits paid | (63) | (92) | |||
Settlements/curtailments | (109) | (6) | |||
Other | (1) | 0 | |||
Fair Value of Assets at End of Period | 1,119 | 1,055 | 1,200 | ||
Funded status | (222) | $ (263) | |||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Prepaid pension cost | 11 | 7 | |||
Accrued pension cost – current | (2) | (2) | |||
Accrued pension cost – non-current | (231) | (268) | |||
Net amount recognized | (222) | (263) | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax [Abstract] | |||||
Net actuarial loss | (442) | (484) | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Projected Benefit Obligation | 1,166 | 1,160 | |||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Accumulated Benefit Obligation | 1,161 | 1,156 | |||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Fair Value of Plan Assets | 938 | 896 | |||
Defined Benefit Plan, Plans with Plan Assets in Excess of Accumulated Benefit Obligations [Abstract] | |||||
Defined Benefit Plan, Pension Plans with Plan Assets in Excess of Accumulated Benefit Obligations, Projected Benefit Obligation | 175 | 158 | |||
Defined Benefit Plan, Pension Plans with Plan Assets in Excess of Accumulated Benefit Obligations, Accumulated Benefit Obligation | 159 | 140 | |||
Defined Benefit Plan, Pension Plans with Plan Assets in Excess of Accumulated Benefit Obligations, Fair Value of Plan Assets | 181 | 159 | |||
Defined Benefit Plan, Accumulated Benefit Obligation | 1,320 | 1,296 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | 10 | 12 | 12 | ||
Expected return on plan assets | (68) | (73) | (79) | ||
Amortization of actuarial gain | 15 | 15 | 18 | ||
Settlement/curtailment | 44 | 0 | 64 | ||
Net periodic postretirement benefit (income)/cost | 48 | 1 | 70 | ||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 1,055 | 1,055 | 1,200 | 1,119 | $ 1,055 |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||||
2020 | 76 | ||||
2021 | 75 | ||||
2022 | 75 | ||||
2023 | 75 | ||||
2024 | 75 | ||||
2025-2029 | 390 | ||||
Pension Plans, Defined Benefit | Other Comprehensive Income | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Interest cost | 15 | ||||
Defined Benefit Plans, Accumulated Other Comprehensive Income (Loss), After Tax [Abstract] | |||||
Accumulated Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Tax | $ (442) | ||||
United States | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 453 | ||||
Fair Value of Assets at End of Period | 461 | 453 | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.30% | 4.25% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Return on Assets | 6.50% | 6.75% | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 453 | 453 | $ 461 | $ 453 | |
Defined Contribution Plan [Abstract] | |||||
Expected contributions by employer | 25 | ||||
United States | Equities, Domestic | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 50 | ||||
Fair Value of Assets at End of Period | 57 | 50 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 50 | 50 | 57 | 50 | |
United States | Equities, International | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 52 | ||||
Fair Value of Assets at End of Period | 55 | 52 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 52 | 52 | 55 | 52 | |
United States | Corporate bonds | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 236 | ||||
Fair Value of Assets at End of Period | 242 | 236 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 236 | 236 | 242 | 236 | |
United States | Government Debt | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 91 | ||||
Fair Value of Assets at End of Period | 85 | 91 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 91 | 91 | 85 | 91 | |
United States | Real estate investment trusts | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 24 | ||||
Fair Value of Assets at End of Period | 22 | 24 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 24 | 24 | 22 | 24 | |
United States | Fair Value, Inputs, Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 126 | ||||
Fair Value of Assets at End of Period | 162 | 126 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 126 | 126 | 162 | 126 | |
United States | Fair Value, Inputs, Level 1 | Equities, Domestic | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 50 | ||||
Fair Value of Assets at End of Period | 57 | 50 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 50 | 50 | 57 | 50 | |
United States | Fair Value, Inputs, Level 1 | Equities, International | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 52 | ||||
Fair Value of Assets at End of Period | 55 | 52 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 52 | 52 | 55 | 52 | |
United States | Fair Value, Inputs, Level 1 | Corporate bonds | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 28 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 28 | 0 | |
United States | Fair Value, Inputs, Level 1 | Government Debt | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
United States | Fair Value, Inputs, Level 1 | Real estate investment trusts | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 24 | ||||
Fair Value of Assets at End of Period | 22 | 24 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 24 | 24 | 22 | 24 | |
United States | Fair Value, Inputs, Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 327 | ||||
Fair Value of Assets at End of Period | 299 | 327 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 327 | 327 | 299 | 327 | |
United States | Fair Value, Inputs, Level 2 | Equities, Domestic | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
United States | Fair Value, Inputs, Level 2 | Equities, International | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
United States | Fair Value, Inputs, Level 2 | Corporate bonds | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 236 | ||||
Fair Value of Assets at End of Period | 214 | 236 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 236 | 236 | 214 | 236 | |
United States | Fair Value, Inputs, Level 2 | Government Debt | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 91 | ||||
Fair Value of Assets at End of Period | 85 | 91 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 91 | 91 | 85 | 91 | |
United States | Fair Value, Inputs, Level 2 | Real estate investment trusts | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
United States | Fair Value, Inputs, Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
United States | Fair Value, Inputs, Level 3 | Equities, Domestic | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
United States | Fair Value, Inputs, Level 3 | Equities, International | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
United States | Fair Value, Inputs, Level 3 | Corporate bonds | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
United States | Fair Value, Inputs, Level 3 | Government Debt | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
United States | Fair Value, Inputs, Level 3 | Real estate investment trusts | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
United States | NAV | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 727 | ||||
Fair Value of Assets at End of Period | 733 | 727 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 727 | 727 | 733 | 727 | |
United States | NAV | Equities | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 123 | ||||
Fair Value of Assets at End of Period | 130 | 123 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 123 | 123 | 130 | 123 | |
United States | NAV | Real assets | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 54 | ||||
Fair Value of Assets at End of Period | 62 | 54 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 54 | 54 | 62 | 54 | |
United States | NAV | Fixed income and cash equivalents | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 53 | ||||
Fair Value of Assets at End of Period | 33 | 53 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 53 | 53 | 33 | 53 | |
United States | NAV | Absolute return strategies and other | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 44 | ||||
Fair Value of Assets at End of Period | 47 | 44 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 44 | 44 | 47 | 44 | |
United States | Pension Plans, Defined Benefit | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit Obligation at Beginning of Period | 891 | 993 | |||
Service cost | 5 | 6 | |||
Interest cost | 34 | 34 | |||
Actuarial (gain)/loss | 85 | (67) | |||
Currency loss | 0 | 0 | |||
Benefits paid | (45) | (75) | |||
Defined Benefit Plan, Settlements / Curtailments | (104) | 0 | |||
Acquisition | 0 | 0 | |||
Other | 0 | 0 | |||
Benefit Obligation at End of Period | 866 | 891 | 993 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 727 | 836 | |||
Actual return on plan assets | 130 | (59) | |||
Currency gain (loss) | 0 | 0 | |||
Company contributions | 25 | 25 | |||
Benefits paid | (45) | (75) | |||
Settlements/curtailments | (104) | 0 | |||
Other | 0 | 0 | |||
Fair Value of Assets at End of Period | 733 | 727 | $ 836 | ||
Funded status | (133) | (164) | |||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Prepaid pension cost | 0 | 0 | |||
Accrued pension cost – current | 0 | 0 | |||
Accrued pension cost – non-current | (133) | (164) | |||
Net amount recognized | (133) | (164) | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax [Abstract] | |||||
Net actuarial loss | (345) | (392) | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Projected Benefit Obligation | 866 | 891 | |||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Accumulated Benefit Obligation | 866 | 891 | |||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Fair Value of Plan Assets | 733 | 727 | |||
Defined Benefit Plan, Plans with Plan Assets in Excess of Accumulated Benefit Obligations [Abstract] | |||||
Defined Benefit Plan, Pension Plans with Plan Assets in Excess of Accumulated Benefit Obligations, Projected Benefit Obligation | 0 | 0 | |||
Defined Benefit Plan, Pension Plans with Plan Assets in Excess of Accumulated Benefit Obligations, Accumulated Benefit Obligation | 0 | 0 | |||
Defined Benefit Plan, Pension Plans with Plan Assets in Excess of Accumulated Benefit Obligations, Fair Value of Plan Assets | 0 | 0 | |||
Defined Benefit Plan, Accumulated Benefit Obligation | 866 | 891 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | $ 5 | $ 6 | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||
Discount rate | 4.25% | 3.55% | 3.95% | ||
Expected return on plan assets | 6.75% | 6.75% | 6.75% | ||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | $ 733 | $ 727 | $ 836 | $ 733 | $ 727 |
Defined Benefit Plan, Plan Assets, Allocations [Abstract] | |||||
Percentage of Assets Invested in Equity | 33.00% | ||||
Percentage of Assets Invested in Real Estate | 3.00% | ||||
Percentage of Assets Invested in Real Assets | 8.00% | ||||
Percentage of Assets Invested in Intermediate and Long-term Fixed income Securities | 50.00% | ||||
Percentage of Assets Invested in Absolute Return Securities | 6.00% | ||||
Defined Contribution Plan [Abstract] | |||||
Company Match Regardless of Employee Contribution | 2.00% | ||||
Foreign Plan | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | $ 78 | ||||
Fair Value of Assets at End of Period | 82 | 78 | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.24% | 3.04% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Expected Return on Assets | 4.66% | 4.91% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.99% | 4.14% | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 78 | 78 | $ 82 | $ 78 | |
Defined Contribution Plan [Abstract] | |||||
Expected contributions by employer | 25 | ||||
Foreign Plan | Equities | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 4 | ||||
Fair Value of Assets at End of Period | 4 | 4 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 4 | 4 | 4 | 4 | |
Foreign Plan | Cash and cash equivalents | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 62 | ||||
Fair Value of Assets at End of Period | 65 | 62 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 62 | 62 | 65 | 62 | |
Foreign Plan | Corporate bonds | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 12 | ||||
Fair Value of Assets at End of Period | 13 | 12 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 12 | 12 | 13 | 12 | |
Foreign Plan | Fair Value, Inputs, Level 1 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at End of Period | 0 | ||||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | |||
Foreign Plan | Fair Value, Inputs, Level 1 | Equities | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
Foreign Plan | Fair Value, Inputs, Level 1 | Cash and cash equivalents | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
Foreign Plan | Fair Value, Inputs, Level 1 | Corporate bonds | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
Foreign Plan | Fair Value, Inputs, Level 2 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 78 | ||||
Fair Value of Assets at End of Period | 82 | 78 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 78 | 78 | 82 | 78 | |
Foreign Plan | Fair Value, Inputs, Level 2 | Equities | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 4 | ||||
Fair Value of Assets at End of Period | 4 | 4 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 4 | 4 | 4 | 4 | |
Foreign Plan | Fair Value, Inputs, Level 2 | Cash and cash equivalents | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 62 | ||||
Fair Value of Assets at End of Period | 65 | 62 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 62 | 62 | 65 | 62 | |
Foreign Plan | Fair Value, Inputs, Level 2 | Corporate bonds | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 12 | ||||
Fair Value of Assets at End of Period | 13 | 12 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 12 | 12 | 13 | 12 | |
Foreign Plan | Fair Value, Inputs, Level 3 | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
Foreign Plan | Fair Value, Inputs, Level 3 | Equities | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
Foreign Plan | Fair Value, Inputs, Level 3 | Cash and cash equivalents | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
Foreign Plan | Fair Value, Inputs, Level 3 | Corporate bonds | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 0 | ||||
Fair Value of Assets at End of Period | 0 | 0 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 0 | 0 | 0 | 0 | |
Foreign Plan | NAV | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 328 | ||||
Fair Value of Assets at End of Period | 386 | 328 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 328 | 328 | 386 | 328 | |
Foreign Plan | NAV | Equities | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 41 | ||||
Fair Value of Assets at End of Period | 71 | 41 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 41 | 41 | 71 | 41 | |
Foreign Plan | NAV | Fixed income and cash equivalents | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 109 | ||||
Fair Value of Assets at End of Period | 123 | 109 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 109 | 109 | 123 | 109 | |
Foreign Plan | NAV | Absolute return strategies and other | |||||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 100 | ||||
Fair Value of Assets at End of Period | 110 | 100 | |||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | 100 | 100 | 110 | 100 | |
Foreign Plan | Pension Plans, Defined Benefit | |||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||||
Benefit Obligation at Beginning of Period | 427 | 457 | |||
Service cost | 5 | 6 | |||
Interest cost | 13 | 13 | |||
Actuarial (gain)/loss | 42 | (18) | |||
Currency loss | 13 | (26) | |||
Benefits paid | (18) | (17) | |||
Defined Benefit Plan, Settlements / Curtailments | (7) | (6) | |||
Acquisition | 0 | 11 | |||
Other | 0 | 7 | |||
Benefit Obligation at End of Period | 475 | 427 | 457 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||||
Fair Value of Assets at Beginning of Period | 328 | 364 | |||
Actual return on plan assets | 50 | (8) | |||
Currency gain (loss) | 11 | (20) | |||
Company contributions | 21 | 15 | |||
Benefits paid | (18) | (17) | |||
Settlements/curtailments | (5) | (6) | |||
Other | (1) | 0 | |||
Fair Value of Assets at End of Period | 386 | 328 | 364 | ||
Funded status | (89) | (99) | |||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||||
Prepaid pension cost | 11 | 7 | |||
Accrued pension cost – current | (2) | (2) | |||
Accrued pension cost – non-current | (98) | (104) | |||
Net amount recognized | (89) | (99) | |||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax [Abstract] | |||||
Net actuarial loss | (97) | (92) | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Abstract] | |||||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Projected Benefit Obligation | 300 | 269 | |||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Accumulated Benefit Obligation | 295 | 265 | |||
Defined Benefit Plan, Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets, Fair Value of Plan Assets | 205 | 169 | |||
Defined Benefit Plan, Plans with Plan Assets in Excess of Accumulated Benefit Obligations [Abstract] | |||||
Defined Benefit Plan, Pension Plans with Plan Assets in Excess of Accumulated Benefit Obligations, Projected Benefit Obligation | 175 | 158 | |||
Defined Benefit Plan, Pension Plans with Plan Assets in Excess of Accumulated Benefit Obligations, Accumulated Benefit Obligation | 159 | 140 | |||
Defined Benefit Plan, Pension Plans with Plan Assets in Excess of Accumulated Benefit Obligations, Fair Value of Plan Assets | 181 | 159 | |||
Defined Benefit Plan, Accumulated Benefit Obligation | 454 | 405 | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | 5 | 6 | |||
Settlement/curtailment | $ 43 | $ 0 | $ 64 | ||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||||
Discount rate | 3.04% | 2.88% | 3.14% | ||
Expected return on plan assets | 4.91% | 5.22% | 5.92% | ||
Rate of compensation increase | 4.14% | 4.29% | 4.25% | ||
Defined Benefit Plan, Information about Plan Assets [Abstract] | |||||
Assets | $ 386 | $ 364 | $ 364 | $ 386 | $ 328 |
POSTEMPLOYMENT AND POSTRETIRE_3
POSTEMPLOYMENT AND POSTRETIREMENT BENEFITS OTHER THAN PENSIONS (DETAIL) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||
2020 | $ 16 | ||
2021 | 15 | ||
2022 | 15 | ||
2023 | 14 | ||
2024 | 14 | ||
2025-2029 | 60 | ||
Postemployment Benefits [Abstract] | |||
Postemployment Benefits Liability | 11 | $ 12 | |
Postemployment Benefits, Period Expense | 1 | 4 | $ 3 |
Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligation at Beginning of Period | 195 | 230 | |
Service cost | 1 | 1 | 2 |
Interest cost | 8 | 8 | 9 |
Actuarial (gain)/loss | (5) | (25) | |
Currency loss | 0 | (1) | |
Plan amendments | (1) | (2) | |
Benefits paid | (15) | (16) | |
Benefit Obligation at End of Period | 183 | 195 | 230 |
Funded status | (183) | (195) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Accrued benefit obligation – current | (16) | (17) | |
Accrued benefit obligation – non-current | (167) | (178) | |
Net amount recognized | (183) | (195) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax [Abstract] | |||
Net actuarial gain | 51 | 54 | |
Net prior service credit | 6 | 9 | |
Net amount recognized | 57 | 63 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 1 | 1 | 2 |
Amortization of prior service credit | (4) | (4) | (4) |
Amortization of actuarial gain | (8) | (6) | (3) |
Net periodic postretirement benefit (income)/cost | (3) | (1) | 4 |
Defined Benefit Plan, Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates [Abstract] | |||
Defined Benefit Plan, Effect of One Percentage Point Increase on Service and Interest Cost Components | 0 | ||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Service and Interest Cost Components | 0 | ||
Defined Benefit Plan, Effect of One Percentage Point Increase on Accumulated Postretirement Benefit Obligation | 4 | ||
Defined Benefit Plan, Effect of One Percentage Point Decrease on Accumulated Postretirement Benefit Obligation | $ (3) | ||
Other Postretirement Benefit Plans, Defined Benefit | Other Comprehensive Income | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Interest cost | 11 | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | |||
Accumulated Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), after Tax | $ 57 | ||
United States | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.30% | 4.25% | |
United States | Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Employee Eligible Age | 10 years | ||
Defined Benefit Plan, Qualifying Employee Age, Scenario 1 | 45 years | ||
Defined Benefit Plan, Qualifying Employee Age, Scenario 2 | 48 years | ||
Defined Benefit Plan, Qualifying Employee Age, Scenario 3 | 50 years | ||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligation at Beginning of Period | $ 183 | $ 216 | |
Service cost | 1 | 1 | |
Interest cost | 7 | 8 | |
Actuarial (gain)/loss | (7) | (25) | |
Currency loss | 0 | 0 | |
Plan amendments | (1) | (2) | |
Benefits paid | (14) | (15) | |
Benefit Obligation at End of Period | 169 | 183 | $ 216 |
Funded status | (169) | (183) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Accrued benefit obligation – current | (15) | (17) | |
Accrued benefit obligation – non-current | (154) | (166) | |
Net amount recognized | (169) | (183) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax [Abstract] | |||
Net actuarial gain | 48 | 49 | |
Net prior service credit | 6 | 9 | |
Net amount recognized | $ 54 | $ 58 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.10% | 4.15% | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 1 | $ 1 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.15% | 3.45% | 3.80% |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Initial rate at end of year | 6.50% | 6.75% | 6.56% |
Ultimate rate | 5.00% | 5.00% | 5.00% |
Year in which ultimate rate is reached | 2026 | 2026 | 2025 |
Foreign Plan | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 2.24% | 3.04% | |
Foreign Plan | Other Postretirement Benefit Plans, Defined Benefit | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit Obligation at Beginning of Period | $ 12 | $ 14 | |
Service cost | 0 | 0 | |
Interest cost | 1 | 0 | |
Actuarial (gain)/loss | 2 | 0 | |
Currency loss | 0 | (1) | |
Plan amendments | 0 | 0 | |
Benefits paid | (1) | (1) | |
Benefit Obligation at End of Period | 14 | 12 | $ 14 |
Funded status | (14) | (12) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | |||
Accrued benefit obligation – current | (1) | 0 | |
Accrued benefit obligation – non-current | (13) | (12) | |
Net amount recognized | (14) | (12) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Gain (Loss), before Tax [Abstract] | |||
Net actuarial gain | 3 | 5 | |
Net prior service credit | 0 | 0 | |
Net amount recognized | $ 3 | $ 5 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.84% | 4.59% | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 0 | $ 0 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | |||
Discount rate | 4.59% | 4.56% | 6.78% |
Defined Benefit Plan, Assumed Health Care Cost Trend Rates [Abstract] | |||
Initial rate at end of year | 5.45% | 5.40% | 5.73% |
Ultimate rate | 5.45% | 5.40% | 5.49% |
Year in which ultimate rate is reached | 2019 | 2019 | 2019 |
CONTINGENT LIABILITIES AND OT_2
CONTINGENT LIABILITIES AND OTHER MATTERS (DETAIL) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)site | |
Unusual or Infrequent Item, or Both [Line Items] | |||
Environmental liability sites | site | 21 | ||
Environmental liabilities reserve | $ 9 | ||
Superfund Sites | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Environmental liability sites | site | 7 | ||
Owned or Formerly Owned Sites | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Environmental liability sites | site | 14 | ||
Positive Outcome of Litigation | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Gain related to litigation settlement | $ 30 | ||
Other Current Liabilities | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Environmental liabilities reserve | $ 5 | ||
Other Expense | Positive Outcome of Litigation | |||
Unusual or Infrequent Item, or Both [Line Items] | |||
Gain related to litigation settlement | $ 29 |
STOCK COMPENSATION (DETAIL)
STOCK COMPENSATION (DETAIL) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 15, 2020 | Apr. 18, 2013 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Grants, weighted average grant date fair value | $ 52.60 | $ 84.34 | $ 56.60 | ||
Intrinsic value of options outstanding | $ 11 | $ 3 | |||
Intrinsic value of options exercisable | $ 11 | ||||
Outstanding Options, Weighted Average Remaining Contractual Term | 3 years 21 days | 4 years | |||
Exercisable Options, Weighted Average Remaining Contractual Term | 3 years 21 days | ||||
Share Based Compensation Arrangement By Share Based Payment Award Options Outstanding Roll Forward | |||||
Options, Outstanding, Number, Beginning Balance | 478,875 | ||||
Options, Outstanding, Number, Options Exercised | (64,075) | ||||
Options, Outstanding, Number, Ending Balance | 414,800 | 478,875 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Options, Outstanding, Weighted Average Exercise Price, Beginning of Period | $ 37.18 | ||||
Options, Outstanding, Exercises In Period Weighted Average Exercise Price | 33.26 | ||||
Options, Outstanding, Weighted Average Exercise Price, End of Period | $ 37.79 | $ 37.18 | |||
Marketing and Administrative Expense | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 39 | $ 47 | $ 44 | ||
Tax benefit from exercise of stock options | $ 7 | $ 24 | $ 26 | ||
Subsequent Event | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Contributions from employees | $ 4 | ||||
Stock Plan 2016 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares available for grant | 4,100,000 | ||||
Performance Stock Units (PSUs) 2019 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Grants, weighted average grant date fair value | $ 68.65 | ||||
Expected volatility rate | 26.67% | ||||
Risk free interest rate | 2.45% | ||||
Expected term | 2 years 10 months 24 days | ||||
Performance Stock Units (PSUs) 2018 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Grants, weighted average grant date fair value | $ 94.14 | ||||
Expected volatility rate | 24.56% | ||||
Risk free interest rate | 2.22% | ||||
Expected term | 2 years 11 months 1 day | ||||
Performance Stock Units (PSUs) 2017 | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Grants, weighted average grant date fair value | $ 59.71 | ||||
Expected volatility rate | 26.06% | ||||
Risk free interest rate | 1.44% | ||||
Expected term | 2 years 11 months 1 day | ||||
Performance Stock Units (PSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Nonoptions, Number, Beginning Balance | 360,977 | ||||
Nonoptions, Number, Grants In Period | 205,350 | ||||
Nonoptions, Number, Vested In Period | (169,052) | ||||
Nonoptions, Number, Forfeited In Period | (84,550) | ||||
Nonoptions, Number, Ending Balance | 312,725 | 360,977 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Nonoptions, Weighted Average Fair Value, Beginning Balance | $ 75.23 | ||||
Nonoptions, Weighted Average Fair Value, Grants in Period | 58.40 | ||||
Nonoptions, Weighted Average Fair Value, Vested | 43.04 | ||||
Nonoptions, Weighted Average Fair Value, Forfeited | 68.56 | ||||
Nonoptions, Weighted Average Fair Value, Ending Balance | $ 69.23 | $ 75.23 | |||
Internal Based Performance Metric | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Percentage of outstanding stock minimum | 0.00% | ||||
Percentage of outstanding stock maximum | 200.00% | ||||
External Based Performance Metric | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period (in years) | 3 years | ||||
Percentage of outstanding stock minimum | 0.00% | ||||
Percentage of outstanding stock maximum | 200.00% | ||||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Tax benefit from exercise of stock options | $ 0 | $ 0 | $ 7 | ||
Award vesting period (in years) | 4 years | ||||
Options maximum term | 10 years | ||||
Cash received from exercise of stock options | $ 2 | 1 | 15 | ||
Restricted Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period (in years) | 2 years 1 month 28 days | ||||
Total unrecognized compensation cost related to restricted stock | $ 30 | ||||
Grants in period fair value | $ 21 | $ 23 | 19 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||
Nonoptions, Number, Beginning Balance | 1,479,374 | ||||
Nonoptions, Number, Grants In Period | 542,693 | ||||
Nonoptions, Number, Vested In Period | (390,673) | ||||
Nonoptions, Number, Forfeited In Period | (115,688) | ||||
Nonoptions, Number, Ending Balance | 1,515,706 | 1,479,374 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||
Nonoptions, Weighted Average Fair Value, Beginning Balance | $ 52.30 | ||||
Nonoptions, Weighted Average Fair Value, Grants in Period | 53.10 | ||||
Nonoptions, Weighted Average Fair Value, Vested | 52.57 | ||||
Nonoptions, Weighted Average Fair Value, Forfeited | 61.68 | ||||
Nonoptions, Weighted Average Fair Value, Ending Balance | $ 51.70 | $ 52.30 | |||
Restricted Stock Awards and Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period (in years) | 4 years | ||||
Performance Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award vesting period (in years) | 1 year 7 months 6 days | ||||
Total unrecognized compensation cost related to restricted stock | $ 9 | ||||
Grants in period fair value | 14 | $ 23 | 9 | ||
Employee Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares available for grant | 2,000,000 | ||||
Total unrecognized compensation cost related to restricted stock | 2 | ||||
Purchase price, percentage of market value | 85.00% | ||||
Employee emergence equity program expense | $ 5 | $ 4 | $ 3 | ||
Shares purchased by employees | 393,230 | 295,407 | 258,504 | ||
Average price of shares purchased | $ 41.33 | $ 48.93 | $ 48.48 | ||
Minimum | Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Exercisable Options, Weighted Average Exercise Price | 13.89 | ||||
Maximum | Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Exercisable Options, Weighted Average Exercise Price | $ 42.16 |
CHANGES IN ACCUMULATED OTHER _3
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE DEFICIT (DETAIL) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | $ (656) | |
Ending balance | (610) | $ (656) |
Currency Translation Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (306) | (183) |
Net investment hedge amounts classified into AOCI, net of tax | 13 | 14 |
Gain/(loss) on foreign currency translation | 11 | (137) |
Other comprehensive (loss), net of tax | 24 | (123) |
Ending balance | (282) | (306) |
Pension and Other Postretirement Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | (350) | (331) |
Amounts reclassified from AOCI to net earnings, net of tax | 35 | 4 |
Amounts classified into AOCI, net of tax | (11) | (23) |
Other comprehensive (loss), net of tax | 24 | (19) |
Ending balance | (326) | (350) |
Hedging Adjustment | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Beginning balance | 0 | 0 |
Amounts reclassified from AOCI to net earnings, net of tax | 3 | (1) |
Amounts classified into AOCI, net of tax | (5) | 1 |
Other comprehensive (loss), net of tax | (2) | 0 |
Ending balance | $ (2) | $ 0 |
EARNINGS PER SHARE (DETAIL)
EARNINGS PER SHARE (DETAIL) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ 73 | $ 150 | $ 138 | $ 44 | $ 171 | $ 161 | $ 121 | $ 92 | $ 405 | $ 545 | $ 289 |
Weighted-average number of shares outstanding used for basic earnings per share | 109.2 | 110.4 | 111.5 | ||||||||
Non-vested restricted and performance shares | 0.7 | 0.8 | 1.5 | ||||||||
Options to purchase common stock | 0.2 | 0.2 | 0.2 | ||||||||
Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share | 111.4 | 113.2 | |||||||||
Basic (dollars per share) | $ 0.67 | $ 1.37 | $ 1.27 | $ 0.40 | $ 1.56 | $ 1.46 | $ 1.09 | $ 0.83 | $ 3.71 | $ 4.94 | $ 2.59 |
Diluted (dollars per share) | $ 0.66 | $ 1.36 | $ 1.26 | $ 0.40 | $ 1.55 | $ 1.45 | $ 1.08 | $ 0.82 | $ 3.68 | $ 4.89 | $ 2.55 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (DETAIL) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Oct. 24, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Payments for repurchase of equity | $ 48 | |||
Performance Shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 300,000 | |||
Restricted Stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share amount | 300,000 | |||
Repurchase Program 2016 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares authorized to be repurchased | 10,000,000 | |||
Remaining number of shares authorized to be repurchased | 3,600,000 | |||
Combined Repurchase Programs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Purchase of treasury stock (in shares) | 1,000,000 |
INCOME TAXES (DETAIL)
INCOME TAXES (DETAIL) - USD ($) | Dec. 18, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2018 |
Operating Loss Carryforwards [Line Items] | |||||||||||||
Earnings Before Taxes, Domestic | $ 315,000,000 | $ 411,000,000 | $ 342,000,000 | ||||||||||
Earnings Before Taxes, Foreign | 275,000,000 | 293,000,000 | 217,000,000 | ||||||||||
EARNINGS BEFORE TAXES | 590,000,000 | 704,000,000 | 559,000,000 | ||||||||||
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||||
Current Federal Tax Expense (Benefit) | (4,000,000) | (10,000,000) | (2,000,000) | ||||||||||
Current State and Local Tax Expense (Benefit) | 11,000,000 | 6,000,000 | 5,000,000 | ||||||||||
Current Foreign Tax Expense (Benefit) | 60,000,000 | 19,000,000 | 83,000,000 | ||||||||||
Current Income Tax Expense (Benefit) | 67,000,000 | 15,000,000 | 86,000,000 | ||||||||||
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||||
Deferred Federal Income Tax Expense (Benefit) | 112,000,000 | 114,000,000 | 196,000,000 | ||||||||||
Deferred State and Local Income Tax Expense (Benefit) | 11,000,000 | 12,000,000 | 3,000,000 | ||||||||||
Deferred Foreign Income Tax Expense (Benefit) | (4,000,000) | 15,000,000 | (16,000,000) | ||||||||||
Deferred Income Tax Expense (Benefit) | 119,000,000 | 141,000,000 | 183,000,000 | ||||||||||
Total income tax expense | $ 27,000,000 | $ 61,000,000 | $ 59,000,000 | $ 39,000,000 | $ 29,000,000 | $ 67,000,000 | $ 49,000,000 | $ 11,000,000 | $ 186,000,000 | $ 156,000,000 | $ 269,000,000 | ||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||||||||||
United States federal statutory rate | 21.00% | 21.00% | 35.00% | ||||||||||
State and local income taxes, net of federal tax benefit | 3.00% | 2.00% | 2.00% | ||||||||||
Foreign tax rate differential | 0.00% | 0.00% | (5.00%) | ||||||||||
U.S. tax expense on foreign earnings | 1.00% | 2.00% | 49.00% | ||||||||||
Legislative tax rate changes | 2.00% | 0.00% | (9.00%) | ||||||||||
Foreign tax credits | 0.00% | 0.00% | 29.00% | ||||||||||
Valuation allowance | 3.00% | 2.00% | 3.00% | ||||||||||
Uncertain tax positions and settlements | 0.00% | (5.00%) | 1.00% | ||||||||||
Excess tax benefits related to stock compensation | 0.00% | (2.00%) | (1.00%) | ||||||||||
Other, net | 1.00% | 2.00% | 2.00% | ||||||||||
Effective tax rate | 31.00% | 22.00% | 48.00% | ||||||||||
Undistributed earnings of foreign subsidiaries | 1,600,000,000 | $ 1,600,000,000 | |||||||||||
Components of Deferred Tax Assets [Abstract] | |||||||||||||
Deferred Tax Assets, Other Employee Benefits | 76,000,000 | 87,000,000 | 76,000,000 | $ 87,000,000 | |||||||||
Deferred Tax Assets, Pension Plans | 54,000,000 | 66,000,000 | 54,000,000 | 66,000,000 | |||||||||
Deferred Tax Assets, Operating Loss Carryforwards | 195,000,000 | 255,000,000 | 195,000,000 | 255,000,000 | |||||||||
Deferred Tax Asset, Lease Liability | 49,000,000 | 49,000,000 | |||||||||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 97,000,000 | 161,000,000 | 97,000,000 | 161,000,000 | |||||||||
Deferred Tax Assets, State and Local | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | |||||||||
Deferred Tax Assets, Other | 76,000,000 | 61,000,000 | 76,000,000 | 61,000,000 | |||||||||
Deferred Tax Assets, Gross | 550,000,000 | 633,000,000 | 550,000,000 | 633,000,000 | |||||||||
Valuation Allowance, Amount | 92,000,000 | 78,000,000 | 92,000,000 | 78,000,000 | |||||||||
Deferred Tax Assets Total | 458,000,000 | 555,000,000 | 458,000,000 | 555,000,000 | |||||||||
Components of Deferred Tax Liabilities [Abstract] | |||||||||||||
Deferred Tax Liabilities, Depreciation | 247,000,000 | 259,000,000 | 247,000,000 | 259,000,000 | |||||||||
Deferred Tax Liabilities, Right of Use Assets | 49,000,000 | 49,000,000 | |||||||||||
Deferred Tax Liabilities, Amortization | 388,000,000 | 395,000,000 | 388,000,000 | 395,000,000 | |||||||||
Deferred Tax Liabilities Total | 684,000,000 | 654,000,000 | 684,000,000 | 654,000,000 | |||||||||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Abstract] | |||||||||||||
U.S. federal loss carryforwards | 27,000,000 | 27,000,000 | |||||||||||
U.S. state loss carryforwards | 47,000,000 | 47,000,000 | |||||||||||
Foreign loss and tax credit carryforwards | 30,000,000 | 30,000,000 | |||||||||||
Foreign loss and tax credit carryforwards | 61,000,000 | 61,000,000 | |||||||||||
Other U.S. federal and state tax credits | 30,000,000 | 30,000,000 | |||||||||||
U.S foreign tax credits | 97,000,000 | 97,000,000 | |||||||||||
US State Deferred Tax Asset Related to Loss Carryforwards Set to Expire | 16,000,000 | 16,000,000 | |||||||||||
Foreign Deferred Tax Asset Related to Loss Carryforwards Set to Expire | 6,000,000 | 6,000,000 | |||||||||||
Federal Earnings Before Tax Needed | 600,000,000 | ||||||||||||
State Earnings Before Tax Needed | 1,400,000,000 | ||||||||||||
Foreign Earnings Before Tax Needed | 400,000,000 | ||||||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||||||||
Unrecognized Tax Benefits, Beginning Balance | $ 84,000,000 | $ 90,000,000 | 84,000,000 | 90,000,000 | $ 98,000,000 | ||||||||
Tax Positions Related to Current Year, Gross Additions | 0 | 6,000,000 | 1,000,000 | ||||||||||
Tax Positions Related to Prior Years, Gross Additions | 1,000,000 | 36,000,000 | 13,000,000 | ||||||||||
Tax Positions Related to Prior Years, Gross Reductions | 0 | (37,000,000) | (11,000,000) | ||||||||||
Settlements | $ (32,000,000) | (1,000,000) | (5,000,000) | (12,000,000) | |||||||||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (5,000,000) | (4,000,000) | 0 | ||||||||||
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | 0 | (2,000,000) | |||||||||||
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation | 1,000,000 | ||||||||||||
Unrecognized Tax Benefits, Ending Balance | 79,000,000 | 84,000,000 | 79,000,000 | 84,000,000 | 90,000,000 | ||||||||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 60,000,000 | 60,000,000 | |||||||||||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 32,000,000 | 1,000,000 | 5,000,000 | 12,000,000 | |||||||||
Income Tax Penalties and Interest [Abstract] | |||||||||||||
Income Tax Examination, Penalties and Interest Accrued | 8,000,000 | $ 10,000,000 | 8,000,000 | 10,000,000 | 11,000,000 | ||||||||
Income Tax Examination, Penalties and Interest Expense | 2,000,000 | 1,000,000 | $ 1,000,000 | ||||||||||
Minimum | |||||||||||||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Abstract] | |||||||||||||
Unrecognized Tax Benefits Estimated Range of Change Lower Bound | 0 | 0 | |||||||||||
Maximum | |||||||||||||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Abstract] | |||||||||||||
Unrecognized Tax Benefits Estimated Range of Change Lower Bound | 3,000,000 | 3,000,000 | |||||||||||
Domestic Tax Authority | |||||||||||||
Components of Deferred Tax Assets [Abstract] | |||||||||||||
Deferred Tax Assets, Gross | 96,000,000 | 96,000,000 | |||||||||||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Abstract] | |||||||||||||
Operating Loss Carryforwards | 100,000,000 | 100,000,000 | |||||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||||||||
Tax Positions Related to Current Year, Gross Additions | 43,000,000 | 34,000,000 | |||||||||||
Domestic Tax Authority | Minimum | |||||||||||||
Components of Deferred Tax Assets [Abstract] | |||||||||||||
Valuation Allowance, Amount | 0 | 0 | |||||||||||
Domestic Tax Authority | Maximum | |||||||||||||
Components of Deferred Tax Assets [Abstract] | |||||||||||||
Valuation Allowance, Amount | 5,000,000 | 5,000,000 | |||||||||||
State and Local Jurisdiction | |||||||||||||
Components of Deferred Tax Assets [Abstract] | |||||||||||||
Deferred Tax Assets, Gross | 6,000,000 | 6,000,000 | |||||||||||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Abstract] | |||||||||||||
Operating Loss Carryforwards | 1,400,000,000 | 1,400,000,000 | |||||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||||||||
Tax Positions Related to Current Year, Gross Additions | 11,000,000 | 6,000,000 | |||||||||||
Foreign Tax Authority | |||||||||||||
Components of Deferred Tax Assets [Abstract] | |||||||||||||
Deferred Tax Assets, Gross | 44,000,000 | 44,000,000 | |||||||||||
Deferred Tax Assets, Operating Loss and Tax Credit Carryforwards [Abstract] | |||||||||||||
Operating Loss Carryforwards | $ 400,000,000 | 400,000,000 | |||||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||||||||||||
Tax Positions Related to Current Year, Gross Additions | $ 38,000,000 | $ 38,000,000 | |||||||||||
Accounting Standards Update 2016-16 | Other Assets | |||||||||||||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||||||||||
Cumulative effect adjustment | $ 17,000,000 | ||||||||||||
Accounting Standards Update 2016-16 | Deferred Income Tax Assets | |||||||||||||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||||||||||
Cumulative effect adjustment | 7,000,000 | ||||||||||||
Accounting Standards Update 2016-16 | Accumulated Earnings | |||||||||||||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||||||||||||
Cumulative effect adjustment | $ 10,000,000 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (unaudited) (DETAIL) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
NET SALES | $ 1,692 | $ 1,883 | $ 1,918 | $ 1,667 | $ 1,724 | $ 1,818 | $ 1,824 | $ 1,691 | $ 7,160 | $ 7,057 | $ 6,384 |
Gross margin | 383 | 461 | 440 | 325 | 411 | 448 | 418 | 355 | 1,609 | 1,632 | 1,569 |
Income tax expense | 27 | 61 | 59 | 39 | 29 | 67 | 49 | 11 | 186 | 156 | 269 |
Net earnings attributable to Owens Corning | $ 73 | $ 150 | $ 138 | $ 44 | $ 171 | $ 161 | $ 121 | $ 92 | $ 405 | $ 545 | $ 289 |
Basic (dollars per share) | $ 0.67 | $ 1.37 | $ 1.27 | $ 0.40 | $ 1.56 | $ 1.46 | $ 1.09 | $ 0.83 | $ 3.71 | $ 4.94 | $ 2.59 |
Diluted (dollars per share) | $ 0.66 | $ 1.36 | $ 1.26 | $ 0.40 | $ 1.55 | $ 1.45 | $ 1.08 | $ 0.82 | $ 3.68 | $ 4.89 | $ 2.55 |
SCHEDULE II - VALUATION AND Q_3
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (DETAIL) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Allowance for Doubtful Accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 16 | $ 19 | $ 9 | |
Charged to Costs and Expenses | 2 | 0 | 12 | |
Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | [1] | (7) | (4) | (2) |
Acquisitions and Divestitures | 0 | 1 | 0 | |
Balance at End of Period | 11 | 16 | 19 | |
Tax Valuation Allowance | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 78 | 94 | 103 | |
Charged to Costs and Expenses | 19 | 13 | 9 | |
Charged to Other Accounts | 1 | (4) | 7 | |
Deductions | (6) | (31) | (25) | |
Acquisitions and Divestitures | 0 | 6 | 0 | |
Balance at End of Period | $ 92 | $ 78 | $ 94 | |
[1] | Uncollectible accounts written off, net of recoveries. |