DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
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 $0.01 per share | |
Trading Symbol | OC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 100,486,652 | |
Entity Central Index Key | 0001370946 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF EARN
CONSOLIDATED STATEMENTS OF EARNINGS (LOSS) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
NET SALES | $ 2,213 | $ 1,904 | $ 6,367 | $ 5,130 |
COST OF SALES | 1,617 | 1,427 | 4,709 | 4,004 |
Gross margin | 596 | 477 | 1,658 | 1,126 |
OPERATING EXPENSES | ||||
Marketing and administrative expenses | 186 | 163 | 548 | 493 |
Science and technology expenses | 21 | 20 | 63 | 59 |
Goodwill impairment charge | 0 | 0 | 0 | 944 |
Other (income) expenses, net | (3) | 2 | (68) | 40 |
Total operating expenses | 204 | 185 | 543 | 1,536 |
OPERATING INCOME (LOSS) | 392 | 292 | 1,115 | (410) |
Non-operating income | (2) | (4) | (8) | (11) |
EARNINGS (LOSS) BEFORE INTEREST AND TAXES | 394 | 296 | 1,123 | (399) |
Interest expense, net | 31 | 35 | 97 | 98 |
EARNINGS (LOSS) BEFORE TAXES | 354 | 261 | 1,017 | (497) |
Income tax expense | 94 | 56 | 250 | 119 |
Equity in net (loss) earnings of affiliates | (1) | 1 | 0 | 1 |
NET EARNINGS (LOSS) | 259 | 206 | 767 | (615) |
Net loss attributable to noncontrolling interests | (1) | 0 | (1) | 0 |
NET EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | $ 260 | $ 206 | $ 768 | $ (615) |
EARNINGS (LOSS) PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS | ||||
Basic (in dollars per share) | $ 2.52 | $ 1.89 | $ 7.36 | $ (5.66) |
Diluted (in dollars per share) | $ 2.50 | $ 1.88 | $ 7.30 | $ (5.66) |
WEIGHTED AVERAGE COMMON SHARES | ||||
Basic (in shares) | 103,100 | 108,800 | 104,400 | 108,700 |
Diluted (in shares) | 103,900 | 109,500 | 105,200 | 108,700 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
NET EARNINGS (LOSS) | $ 259 | $ 206 | $ 767 | $ (615) |
Currency translation adjustment (net of tax of $(1) and $3 for the three months ended September 30, 2021 and 2020, respectively, and $(2) and $(7) for the nine months ended September 30, 2021 and 2020, respectively) | (35) | 37 | (48) | (32) |
Pension and other postretirement adjustment (net of tax of $(10) and $0 for the three months ended September 30, 2021 and 2020, respectively, and $(10) and $0 for the nine months ended September 30, 2021 and 2020, respectively) | 33 | (3) | 31 | 2 |
Amounts classified into AOCI, net of tax | 12 | 3 | 22 | 2 |
COMPREHENSIVE EARNINGS (LOSS) | 269 | 243 | 772 | (643) |
Comprehensive loss attributable to noncontrolling interests | (1) | 0 | (1) | 0 |
COMPREHENSIVE EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING | $ 270 | $ 243 | $ 773 | $ (643) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Currency translation tax | $ (1) | $ 3 | $ (2) | $ (7) |
Pension and other postretirement tax | (10) | 0 | (10) | 0 |
Hedging tax | $ (5) | $ (1) | $ (8) | $ (1) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 | |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 920 | $ 717 | |
Receivables, less allowance of $9 and $10 at September 30, 2021 and December 31, 2020, respectively | 1,141 | 919 | |
Inventories | 949 | 855 | |
Other current assets | 133 | 115 | |
Total current assets | 3,143 | 2,606 | |
Property, plant and equipment, net | 3,767 | 3,809 | |
Operating lease right-of-use assets | 145 | 154 | |
Goodwill | 995 | 989 | |
Intangible assets | 1,629 | 1,667 | |
Deferred income taxes | 39 | 28 | |
Other non-current assets | 263 | 228 | |
TOTAL ASSETS | 9,981 | 9,481 | |
LIABILITIES AND EQUITY | |||
Current operating lease liabilities | 52 | 55 | |
Other current liabilities | 1,634 | 1,385 | |
Total current liabilities | 1,686 | 1,440 | |
Long-term debt, net of current portion | 2,958 | 3,126 | |
Pension plan liability | 109 | 159 | |
Other employee benefits liability | 167 | 171 | |
Non-current operating lease liabilities | 93 | 99 | |
Deferred income taxes | 397 | 332 | |
Other liabilities | 322 | 213 | |
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 | 4,076 | 4,059 | |
Accumulated earnings | 2,515 | 1,829 | |
Accumulated other comprehensive deficit | (583) | (588) | |
Cost of common stock in treasury | [3] | (1,799) | (1,400) |
Total Owens Corning stockholders’ equity | 4,210 | 3,901 | |
Noncontrolling interests | 39 | 40 | |
Total equity | 4,249 | 3,941 | |
TOTAL LIABILITIES AND EQUITY | $ 9,981 | $ 9,481 | |
[1] | 10 shares authorized; none issued or outstanding at September 30, 2021 and December 31, 2020 | ||
[2] | 400 shares authorized; 135.5 issued and 101.6 outstanding at September 30, 2021; 135.5 issued and 105.6 outstanding at December 31, 2020 | ||
[3] | shares at September 30, 2021 and 29.9 shares at December 31, 2020 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9 | $ 10 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, outstanding | 0 | 0 |
Preferred stock, issued | 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 | 101,600,000 | 105,600,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Common Stock Outstanding | Treasury Stock | APIC | Accumulated Earnings | AOCI | NCI | ||||
Beginning balance at Dec. 31, 2019 | $ 4,671 | $ 1 | $ (1,130) | $ 4,051 | [1] | $ 2,319 | $ (610) | [2] | $ 40 | [3] | |
Beginning balance (in shares) at Dec. 31, 2019 | 109 | 26.5 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings (loss) attributable to Owens Corning | (917) | (917) | |||||||||
Currency translation adjustment | (124) | (122) | [2] | (2) | [3] | ||||||
Pension and other postretirement adjustment (net of tax) | 7 | 7 | [2] | ||||||||
Deferred gain (loss) on hedging transactions (net of tax) | (1) | (1) | [2] | ||||||||
Issuance of common stock under share-based payment plans, shares | 0.4 | (0.4) | |||||||||
Issuance of common stock under share-based payment plans | 0 | $ 16 | (16) | [1] | |||||||
Purchases of treasury stock (shares) | (1.6) | 1.6 | |||||||||
Purchases of treasury stock | (96) | $ (96) | |||||||||
Stock-based compensation expense | 11 | 11 | [1] | ||||||||
Dividends declared | [4] | (26) | (26) | ||||||||
Ending balance at Mar. 31, 2020 | 3,526 | $ 1 | $ (1,210) | 4,046 | [1] | 1,376 | (726) | [2] | 39 | [3] | |
Ending balance (in shares) at Mar. 31, 2020 | 107.8 | 27.7 | |||||||||
Beginning balance at Dec. 31, 2019 | 4,671 | $ 1 | $ (1,130) | 4,051 | [1] | 2,319 | (610) | [2] | 40 | [3] | |
Beginning balance (in shares) at Dec. 31, 2019 | 109 | 26.5 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings (loss) attributable to Owens Corning | (615) | ||||||||||
Net loss attributable to noncontrolling interests | 0 | ||||||||||
Ending balance at Sep. 30, 2020 | 3,892 | $ 1 | $ (1,200) | 4,064 | [1] | 1,625 | (638) | [2] | 40 | [3] | |
Ending balance (in shares) at Sep. 30, 2020 | 108 | 27.5 | |||||||||
Beginning balance at Mar. 31, 2020 | 3,526 | $ 1 | $ (1,210) | 4,046 | [1] | 1,376 | (726) | [2] | 39 | [3] | |
Beginning balance (in shares) at Mar. 31, 2020 | 107.8 | 27.7 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings (loss) attributable to Owens Corning | 96 | 96 | |||||||||
Net loss attributable to noncontrolling interests | (1) | (1) | [3] | ||||||||
Currency translation adjustment | 54 | 53 | [2] | 1 | [3] | ||||||
Pension and other postretirement adjustment (net of tax) | (2) | (2) | [2] | ||||||||
Issuance of common stock under share-based payment plans, shares | 0.2 | (0.2) | |||||||||
Issuance of common stock under share-based payment plans | 8 | $ 9 | (1) | [1] | |||||||
Stock-based compensation expense | 9 | 9 | [1] | ||||||||
Dividends declared | (27) | (27) | 0 | [3] | |||||||
Ending balance at Jun. 30, 2020 | 3,663 | $ 1 | $ (1,201) | 4,054 | [1] | 1,445 | (675) | [2] | 39 | [3] | |
Ending balance (in shares) at Jun. 30, 2020 | 108 | 27.5 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings (loss) attributable to Owens Corning | 206 | 206 | |||||||||
Net loss attributable to noncontrolling interests | 0 | ||||||||||
Currency translation adjustment | 38 | 37 | [2] | 1 | [3] | ||||||
Pension and other postretirement adjustment (net of tax) | (3) | (3) | [2] | ||||||||
Deferred gain (loss) on hedging transactions (net of tax) | 3 | 3 | [2] | ||||||||
Issuance of common stock under share-based payment plans, shares | 0 | 0 | |||||||||
Issuance of common stock under share-based payment plans | 0 | $ 1 | (1) | [1] | |||||||
Stock-based compensation expense | 11 | 11 | [1] | ||||||||
Dividends declared | (26) | (26) | |||||||||
Ending balance at Sep. 30, 2020 | 3,892 | $ 1 | $ (1,200) | 4,064 | [1] | 1,625 | (638) | [2] | 40 | [3] | |
Ending balance (in shares) at Sep. 30, 2020 | 108 | 27.5 | |||||||||
Beginning balance at Dec. 31, 2020 | 3,941 | $ 1 | $ (1,400) | 4,059 | [5] | 1,829 | (588) | [6] | 40 | [7] | |
Beginning balance (in shares) at Dec. 31, 2020 | 105.6 | 29.9 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings (loss) attributable to Owens Corning | 210 | 210 | 0 | [7] | |||||||
Currency translation adjustment | (46) | (45) | [6] | (1) | [7] | ||||||
Pension and other postretirement adjustment (net of tax) | 1 | 1 | [6] | ||||||||
Deferred gain (loss) on hedging transactions (net of tax) | 12 | 12 | [6] | ||||||||
Issuance of common stock under share-based payment plans, shares | 0.5 | (0.5) | |||||||||
Issuance of common stock under share-based payment plans | 7 | $ 22 | (15) | [5] | |||||||
Purchases of treasury stock (shares) | (1.8) | (1.8) | |||||||||
Purchases of treasury stock | (142) | $ (142) | |||||||||
Stock-based compensation expense | 12 | 12 | [5] | ||||||||
Dividends declared | [4] | (28) | (28) | ||||||||
Ending balance at Mar. 31, 2021 | 3,967 | $ 1 | $ (1,520) | 4,056 | [5] | 2,011 | (620) | [6] | 39 | [7] | |
Ending balance (in shares) at Mar. 31, 2021 | 104.3 | 31.2 | |||||||||
Beginning balance at Dec. 31, 2020 | 3,941 | $ 1 | $ (1,400) | 4,059 | [5] | 1,829 | (588) | [6] | 40 | [7] | |
Beginning balance (in shares) at Dec. 31, 2020 | 105.6 | 29.9 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings (loss) attributable to Owens Corning | 768 | ||||||||||
Net loss attributable to noncontrolling interests | (1) | ||||||||||
Ending balance at Sep. 30, 2021 | 4,249 | $ 1 | $ (1,799) | 4,076 | 2,515 | (583) | 39 | ||||
Ending balance (in shares) at Sep. 30, 2021 | 101.6 | 33.9 | |||||||||
Beginning balance at Mar. 31, 2021 | 3,967 | $ 1 | $ (1,520) | 4,056 | [5] | 2,011 | (620) | [6] | 39 | [7] | |
Beginning balance (in shares) at Mar. 31, 2021 | 104.3 | 31.2 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings (loss) attributable to Owens Corning | 298 | 298 | 0 | [7] | |||||||
Currency translation adjustment | 32 | 32 | [6] | 0 | [7] | ||||||
Pension and other postretirement adjustment (net of tax) | (3) | (3) | [6] | ||||||||
Deferred gain (loss) on hedging transactions (net of tax) | (2) | (2) | [6] | ||||||||
Issuance of common stock under share-based payment plans, shares | 0.3 | (0.3) | |||||||||
Issuance of common stock under share-based payment plans | 10 | $ 14 | (4) | [5] | |||||||
Purchases of treasury stock (shares) | (1.3) | (1.3) | |||||||||
Purchases of treasury stock | (131) | $ (131) | |||||||||
Stock-based compensation expense | 12 | 12 | [5] | ||||||||
Dividends declared | [8] | (27) | (27) | ||||||||
Ending balance at Jun. 30, 2021 | 4,156 | $ 1 | $ (1,637) | 4,064 | [5] | 2,282 | (593) | [6] | 39 | [7] | |
Ending balance (in shares) at Jun. 30, 2021 | 103.3 | 32.2 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||
Net earnings (loss) attributable to Owens Corning | 260 | 260 | 0 | ||||||||
Net loss attributable to noncontrolling interests | (1) | (1) | |||||||||
Currency translation adjustment | (34) | (35) | 1 | ||||||||
Pension and other postretirement adjustment (net of tax) | 33 | 33 | |||||||||
Deferred gain (loss) on hedging transactions (net of tax) | 12 | 12 | |||||||||
Purchases of treasury stock (shares) | (1.7) | (1.7) | |||||||||
Purchases of treasury stock | (162) | $ (162) | |||||||||
Stock-based compensation expense | 12 | 12 | |||||||||
Dividends declared | (27) | (27) | |||||||||
Ending balance at Sep. 30, 2021 | $ 4,249 | $ 1 | $ (1,799) | $ 4,076 | $ 2,515 | $ (583) | $ 39 | ||||
Ending balance (in shares) at Sep. 30, 2021 | 101.6 | 33.9 | |||||||||
[1] | Additional Paid in Capital (APIC) | ||||||||||
[2] | Accumulated Other Comprehensive Earnings (Deficit) (“AOCI”) | ||||||||||
[3] | Noncontrolling Interest (“NCI”) | ||||||||||
[4] | Quarterly dividend declarations of $0.24 per share as of September 30, 2020, June 30, 2020 and March 31, 2020 | ||||||||||
[5] | Additional Paid in Capital (APIC) | ||||||||||
[6] | Accumulated Other Comprehensive Earnings (Deficit) (“AOCI”) | ||||||||||
[7] | Noncontrolling Interest (“NCI”) | ||||||||||
[8] | Quarterly dividend declarations of $0.26 per share as of September 30, 2021, June 30, 2021 and March 31, 2021 |
CONSOLIDATED STATEMENTS OF ST_2
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends (dollars per share) | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.24 | $ 0.24 | $ 0.24 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ||
NET EARNINGS (LOSS) | $ 767 | $ (615) |
Adjustments to reconcile net earnings (loss) to cash provided by operating activities: | ||
Depreciation and amortization | 370 | 352 |
Deferred income taxes | 54 | 95 |
Provision for pension and other employee benefits liabilities | 2 | (2) |
Stock-based compensation expense | 36 | 31 |
Goodwill impairment charge | 0 | 944 |
Intangible assets impairment charge | 0 | 43 |
Other adjustments to reconcile net earnings (loss) to cash provided by operating activities | (27) | (41) |
Loss on extinguishment of debt | 9 | 0 |
Changes in operating assets and liabilities | (26) | (53) |
Pension fund contribution | (5) | (20) |
Payments for other employee benefits liabilities | (9) | (10) |
Other | (3) | (7) |
Net cash flow provided by operating activities | 1,168 | 717 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Cash paid for property, plant, and equipment | (243) | (203) |
Purchase of Interwrap | 70 | 50 |
Investment in subsidiaries and affiliates, net of cash acquired | (42) | 0 |
Derivative settlements | (23) | 49 |
Other | (4) | 0 |
Net cash flow used for investing activities | (242) | (104) |
NET CASH FLOW USED FOR FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 0 | 297 |
Payments on long-term debt | (193) | 0 |
Proceeds from senior revolving credit and receivables securitization facilities | 0 | 876 |
Payments on senior revolving credit and receivables securitization facilities | 0 | (876) |
Payments on term loan borrowing | 0 | (200) |
Net increase (decrease) in short-term debt | 1 | (20) |
Dividends paid | (81) | (78) |
Purchases of treasury stock | (435) | (96) |
Other | (8) | (9) |
Net cash flow used for financing activities | (716) | (106) |
Effect of exchange rate changes on cash | (7) | (32) |
Net increase in cash, cash equivalents, and restricted cash | 203 | 475 |
Cash, cash equivalents and restricted cash at beginning of period | 724 | 179 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD | $ 927 | $ 654 |
GENERAL
GENERAL | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
GENERAL | GENERAL Unless the context requires otherwise, the terms “Owens Corning,” “Company,” “we” and “our” in this report refer to Owens Corning, a Delaware corporation, and its subsidiaries. The Consolidated Financial Statements included in this report are unaudited, pursuant to certain rules and regulations of the Securities and Exchange Commission, and include, in the opinion of the Company, normal recurring adjustments necessary for a fair statement of the results for the periods indicated, which, however, are not necessarily indicative of results which may be expected for the full year. The December 31, 2020 balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States ("U.S."). In connection with the Consolidated Financial Statements and Notes included in this report, reference is made to the Consolidated Financial Statements and Notes contained in the Company’s Form 10-K for the year ended December 31, 2020 (the "2020 Form 10-K"). Certain reclassifications have been made to the periods presented for 2020 to conform to the classifications used in the periods presented for 2021. Revenue Recognition As of December 31, 2020, our contract liability balances (for extended warranties, down payments and deposits, collectively) totaled $66 million, of which $15 million was recognized as revenue in the first nine months of 2021. As of September 30, 2021, our contract liability balances totaled $78 million. Cash, Cash Equivalents and Restricted Cash On the Consolidated Statements of Cash Flows, the total of Cash, cash equivalents and restricted cash includes restricted cash of $7 million as of September 30, 2021, December 31, 2020, September 30, 2020 and December 31, 2019. Restricted cash primarily represents amounts received from a counterparty related to its performance assurance on an executory contract, which is included in Other current assets on the Consolidated Balance Sheets. These amounts are contractually required to be set aside, and the counterparty can exchange the cash for another form of performance assurance at its discretion. Related Party Transactions In the first quarter of 2021, a related party relationship was established as a result of a member of the Company’s Board of Directors being named an executive officer of one of the Company’s preexisting suppliers. The related party transactions with this supplier consist of the purchase of raw materials. Purchases from the related party supplier were $23 million and $70 million for the three and nine months ended September 30, 2021, respectively. As of September 30, 2021, amounts due to the related party supplier were $4 million. Leases During the first quarter of 2021, the Company entered into a lease for a warehouse located near our manufacturing facility in Fort Smith, Arkansas that is expected to commence in 2022. The lease is for a to-be-constructed warehouse where the Company will serve as the construction agent for the landlord. At no point during the construction period will the Company control the underlying asset as defined in Accounting Standards Codification (ASC) 842 (Leases). This lease will result in finance lease right-of-use assets and corresponding lease liabilities of approximately $35 million at the time of lease commencement. Accounting Pronouncements The following table summarizes recent Accounting Standards Updates (ASU's) issued by the Financial Accounting Standards Board (FASB) that had an impact on the Company's Consolidated Financial Statements: Standard Description Effective Date for Company Effect on the Recently adopted standards: ASU 2019-12 "Income Taxes (Topic 740)" This standard simplifies accounting for income taxes including such topics as intraperiod tax allocations, franchise taxes and separate company financial statements. January 1, 2021 The adoption of this standard did not have a material effect on our consolidated financial statements. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company has three reportable segments: Composites, Insulation and Roofing. Accounting policies for the segments are the same as those for the Company. The Company’s three reportable segments are defined as follows: Composites – The 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, nonwovens 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. For the three months ended September 30, 2021 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 83 $ 312 $ 796 $ (60) $ 1,131 U.S. commercial and industrial 163 181 38 — 382 Total United States 246 493 834 (60) 1,513 Europe 161 179 5 (2) 343 Asia-Pacific 136 48 1 — 185 Rest of world 48 95 29 — 172 NET SALES $ 591 $ 815 $ 869 $ (62) $ 2,213 For the three months ended September 30, 2020 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 76 $ 257 $ 691 $ (56) $ 968 U.S. commercial and industrial 136 150 43 (3) 326 Total United States 212 407 734 (59) 1,294 Europe 131 155 3 — 289 Asia-Pacific 141 43 3 — 187 Rest of world 37 76 21 — 134 NET SALES $ 521 $ 681 $ 761 $ (59) $ 1,904 For the nine months ended September 30, 2021 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 241 $ 860 $ 2,302 $ (181) $ 3,222 U.S. commercial and industrial 471 520 93 — 1,084 Total United States 712 1,380 2,395 (181) 4,306 Europe 484 526 13 (3) 1,020 Asia-Pacific 403 137 6 — 546 Rest of world 134 278 83 — 495 NET SALES $ 1,733 $ 2,321 $ 2,497 $ (184) $ 6,367 For the nine months ended September 30, 2020 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 200 $ 683 $ 1,798 $ (151) $ 2,530 U.S. commercial and industrial 397 448 110 (3) 952 Total United States 597 1,131 1,908 (154) 3,482 Europe 379 444 10 (1) 832 Asia-Pacific 346 107 8 — 461 Rest of world 91 197 67 — 355 NET SALES $ 1,413 $ 1,879 $ 1,993 $ (155) $ 5,130 EARNINGS BEFORE INTEREST AND TAXES Earnings before interest and taxes (EBIT) by segment consist of net sales less related costs and expenses and are presented on a basis that is used internally for evaluating segment performance. Certain items, such as general corporate expenses or income and certain other expense or income items, are excluded from the internal evaluation of segment performance. Accordingly, these items are not reflected in EBIT for our reportable segments and are included within Corporate, Other and Eliminations. The following table summarizes EBIT by segment (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Reportable Segments Composites $ 101 $ 55 $ 278 $ 105 Insulation 124 73 318 144 Roofing 212 196 602 408 Total reportable segments 437 324 1,198 657 Restructuring costs (20) — (22) (10) Gain on sale of land in India 15 — 15 — Gains on sale of certain precious metals — 7 41 26 Goodwill impairment charge — — — (944) Intangible assets impairment charge — — — (43) Recognition of acquisition inventory fair value step-up (1) — (1) — General corporate expense and other (37) (35) (108) (85) Total corporate, other and eliminations (43) (28) (75) (1,056) EBIT $ 394 $ 296 $ 1,123 $ (399) |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of the following (in millions): September 30, 2021 December 31, 2020 Finished goods $ 559 $ 532 Materials and supplies 390 323 Total inventories $ 949 $ 855 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to, among other risks, the impact of changes in commodity prices, foreign currency exchange rates, and interest rates in the normal course of business. The Company’s risk management program is designed to manage the exposure and volatility arising from these risks, and utilizes derivative financial instruments to offset a portion of these risks. The Company uses derivative financial instruments only to the extent necessary to hedge identified business risks, and does not enter into such transactions for trading purposes. The Company generally does not require collateral or other security with counterparties to these financial instruments and is therefore subject to credit risk in the event of nonperformance; however, the Company monitors credit risk and currently does not anticipate nonperformance by other parties. Contracts with counterparties generally contain right of offset provisions. These provisions effectively reduce the Company’s exposure to credit risk in situations where the Company has gain and loss positions outstanding with a single counterparty. It is the Company’s policy to offset on the Consolidated Balance Sheets the amounts recognized for derivative instruments with any cash collateral arising from derivative instruments executed with the same counterparty under a master netting agreement. As of September 30, 2021 and December 31, 2020, the Company did not have any amounts on deposit with any of its counterparties, nor did any of its counterparties have any amounts on deposit with the Company. Derivative Fair Values Our derivatives consist of natural gas forward swaps, cross-currency swaps, foreign exchange forward contracts and U.S. treasury rate lock agreements, all of which are over-the-counter and not traded through an exchange. The Company uses widely accepted valuation tools to determine fair value, such as discounting cash flows to calculate a present value for the derivatives. The models use Level 2 inputs, such as forward curves and other commonly quoted observable transactions and prices. The fair value of our derivatives and hedging instruments are all classified as Level 2 investments within the three-tier hierarchy. The following table presents the fair value of derivatives and hedging instruments and the respective location on the Consolidated Balance Sheets (in millions): Fair Value at Location September 30, 2021 December 31, 2020 Derivative assets designated as hedging instruments: Net investment hedges: Cross-currency swaps Other current assets $ 5 $ 5 Cash flow hedges: Natural gas forward swaps Other current assets $ 25 $ 2 Treasury interest rate lock Other non-current assets $ 12 $ 4 Derivative liabilities designated as hedging instruments: Net investment hedges: Cross-currency swaps Other liabilities $ 2 $ 11 Cash flow hedges: Foreign exchange forward contracts Other current liabilities $ 1 $ — Derivative assets not designated as hedging instruments: Foreign exchange forward contracts Other current assets $ 13 $ 2 Derivative liabilities not designated as hedging instruments: Foreign exchange forward contracts Other current liabilities $ 1 $ 45 Consolidated Statements of Earnings (Loss) Activity The following table presents the impact and respective location of derivative activities on the Consolidated Statements of Earnings (Loss) (in millions): Three Months Ended Nine Months Ended Location 2021 2020 2021 2020 Derivative activity designated as hedging instruments: Natural gas cash flow hedges: Amount of (gain)/loss reclassified from AOCI (as defined below) into earnings (a) Cost of sales $ (4) $ 1 $ (6) $ 5 Cross-currency swap net investment hedges: Amount of gain recognized in earnings on derivative amounts excluded from effectiveness testing Interest expense, net $ (1) $ (1) $ (4) $ (6) Derivative activity not designated as hedging instruments: Foreign currency: Amount of (gain)/loss recognized in earnings (b) Other (income) expenses, net $ (14) $ 29 $ (30) $ 20 (a) Accumulated Other Comprehensive Earnings (Deficit) ("AOCI") (b) Gains related to foreign currency derivatives were substantially offset by net revaluation impacts on foreign currency denominated balance sheet exposures, which were also recorded in Other (income) expenses, net. Please refer to the "Other Derivatives" section below for additional detail. Consolidated Statements of Comprehensive Earnings (Loss) Activity The following table presents the impact of derivative activities on the Consolidated Statements of Comprehensive Earnings (Loss) (in millions): Amount of (Gain) Loss Recognized in Comprehensive Earnings (Loss) Three Months Ended Nine Months Ended Hedging Type Derivative Financial Instrument 2021 2020 2021 2020 Net investment hedge Cross-currency swaps $ (5) $ 11 $ (9) $ (27) Cash flow hedge Natural gas forward swaps $ (17) $ (3) $ (23) $ (3) Cash flow hedge Treasury interest rate lock $ — $ (1) $ (8) $ 1 Cash flow hedge Foreign exchange forward contracts $ — $ — $ 1 $ — Cash Flow Hedges The Company uses a combination of derivative financial instruments, which qualify as cash flow hedges, and physical contracts to manage forecasted exposure to electricity and natural gas prices. As of September 30, 2021, the notional amounts of these natural gas forward swaps was 2 million MMBtu (or MMBtu equivalent) based on European indices. In March 2020, the Company entered into a $175 million forward U.S. Treasury rate lock agreement to manage the U.S. Treasury portion of its interest rate risk associated with the anticipated issuance of certain 10-year fixed rate senior notes before the end of 2022. The Company intends to cash settle this agreement upon a future issuance of certain senior notes thereby effectively locking in the U.S. Treasury fixed interest rate in effect at the time the agreement was initiated. The locked fixed rate of this agreement is 0.994%. The Company has designated this outstanding forward U.S. Treasury rate lock agreement, which expires on December 15, 2022, as a cash flow hedge. In June 2021, the Company entered into five currency forward contracts with unrelated counterparties totaling $26 million to mitigate against unwanted or anticipated moves in the European Euro exchange rate against the U.S. Dollar, pertaining to forecasted Euro denominated invoices for capital expenditures. The Company has designated each of the individual contracts as cash flow hedges, with the last hedge maturing no later than December 2023. 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 portions of the net investment in foreign subsidiaries against fluctuations in foreign exchange rates. As of September 30, 2021, the notional amount of these derivative financial instruments was $218 million related to the U.S. Dollar and European Euro. In the second quarter of 2020, the Company unwound certain net investment hedge contracts, resulting in cash proceeds of $30 million. 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 September 30, 2021, the Company had notional amounts of $706 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, Hong Kong Dollar, Indian Rupee, and South Korean Won. In addition, the Company had notional amounts of $91 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 | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | Goodwill The Company tests goodwill and indefinite-lived intangible assets for impairment during the fourth quarter of each year, or more frequently should circumstances change or events occur that would more likely than not reduce the fair value of a reporting unit below its carrying value. No testing was deemed necessary in the first nine months of 2021. The changes in the net carrying value of goodwill by segment are as follows (in millions): Composites Insulation Roofing Total Balance at December 31, 2020 $ 57 $ 532 $ 400 $ 989 Acquisitions (see Note 7) 16 — — 16 Additions 3 — — 3 Foreign Currency Translation (1) (10) (2) (13) Balance at September 30, 2021 $ 75 $ 522 $ 398 $ 995 During the first quarter of 2020, the Company’s significant share price reduction during the COVID-19 pandemic was determined to be an indicator of impairment under ASC 350. The COVID-19 pandemic was expected to have a negative impact on results for the remainder of 2020 and create uncertainty in our markets. The narrow cushion on the Insulation reporting unit and the high level of macroeconomic uncertainty caused the Company to perform an interim goodwill impairment test as of March 31, 2020 over the Insulation reporting unit. After evaluating and weighing all relevant events and circumstances, and considering the substantial excess fair values for the Roofing and Composites reporting units, we concluded that it was not more likely than not that the fair values of these reporting units were less than their carrying values. Consequently, we determined that it was not necessary to perform an interim impairment test for the Roofing and Composites reporting units. Based on the results of this interim testing over the Insulation reporting unit, the Company recorded a $944 million pre-tax non-cash impairment charge in the first quarter of 2020. This charge was recorded in Goodwill impairment charge on the Consolidated Statements of Earnings (Loss), and was included in the Corporate, Other and Eliminations reporting category. 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. Other intangible assets consist of the following (in millions): September 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Trademarks $ 1,102 $ — $ 1,102 $ 1,109 $ — $ 1,109 Customer relationships 567 (215) 352 570 (200) 370 Technology 321 (185) 136 327 (172) 155 Other (a) 43 (4) 39 36 (3) 33 Total other intangible assets $ 2,033 $ (404) $ 1,629 $ 2,042 $ (375) $ 1,667 (a) Other primarily includes emissions and quarry rights. In the first quarter of 2020, we performed an interim impairment test of certain indefinite-lived trademarks and trade names used by our Insulation segment, based on the macroeconomic conditions that precipitated the interim goodwill impairment test described above. Based on the results of this testing, the Company recorded pre-tax non-cash impairment charges totaling $43 million in the first quarter of 2020 related to two of the Insulation trademarks and trade names. These charges were recorded in Other (income) expenses, net on the Consolidated Statements of Earnings (Loss), and were included in the Corporate, Other and Eliminations reporting category. Non-cash impairment charges included a pre-tax impairment charge of $34 million for a trade name used by our European building and technical insulation business, and a pre-tax impairment charge of $9 million related to a trademark used on global cellular glass insulation products. There is one trade name used by our European building and technical insulation business within our Insulation segment that is at an increased risk of impairment. A change in the estimated long-term revenue growth rate or increase in the discount rate assumption could increase the likelihood of a future impairment for this asset. The affected asset had a carrying value of $164 million as of September 30, 2021. The estimated amortization expense for intangible assets for the next five years is as follows (in millions): Period Amortization 2022 $ 45 2023 $ 43 2024 $ 39 2025 $ 38 2026 $ 38 |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPTMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following (in millions): September 30, December 31, 2020 Land $ 222 $ 222 Buildings and leasehold improvements 1,255 1,241 Machinery and equipment 5,277 5,155 Construction in progress 270 292 7,024 6,910 Accumulated depreciation (3,257) (3,101) Property, plant and equipment, net $ 3,767 $ 3,809 Machinery and equipment includes certain precious metals used in our production tooling, which comprise approximately 10% of total machinery and equipment as of both September 30, 2021 and December 31, 2020. Precious metals used in our production tooling are depleted as they are consumed during the production process, which typically represents an annual expense of about 3% of the outstanding carrying value. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONSOn July 13, 2021, the Company acquired vliepa GmbH ("vliepa"), which specializes in the coating, printing, and finishing of nonwovens, paper, and film for the building materials industry in Europe, for $42 million, net of cash acquired. The acquisition broadens the Company’s global nonwovens portfolio to better serve European customers and accelerate growth of building and construction market applications in the region. The operating results and a preliminary purchase price allocation for vliepa have been included in the Company’s Composites segment within the Consolidated Financial Statements since the date of the acquisition. The purchase price allocation is preliminary until the Company obtains final information regarding fair values. The acquisition resulted in the recognition of $13 million in intangible assets and $16 million in goodwill. The pro-forma effect of this acquisition on revenues and earnings was not material. |
WARRANTIES
WARRANTIES | 9 Months Ended |
Sep. 30, 2021 | |
Product Warranties Disclosures [Abstract] | |
WARRANTIES | WARRANTIES The Company records a liability for warranty obligations at the date the related products are sold. Adjustments are made as new information becomes available. Please refer to Note 1 of our 2020 Form 10-K for information about our separately-priced extended warranty contracts. A reconciliation of the warranty liability is as follows (in millions): Nine Months Ended September 30, 2021 2020 Beginning balance $ 72 $ 64 Amounts accrued for current year 17 16 Settlements of warranty claims (10) (10) Ending balance $ 79 $ 70 |
RESTRUCTURING AND ACQUISITION-R
RESTRUCTURING AND ACQUISITION-RELATED COSTS | 9 Months Ended |
Sep. 30, 2021 | |
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. Santa Clara Insulation Site During the third quarter of 2021, the Company entered into a purchase and sale agreement for the Company's Insulation site in Santa Clara, California. The Company expects to continue operations at this facility through the third quarter of 2022 and complete the transaction in the first quarter of 2023. This action is part of the Company's on-going strategy to operate a flexible, cost-efficient manufacturing network and geographically locate its assets to better service its customers. Cumulative cash pre-tax charges associated with the transaction are expected to be in the range of $30 million to $40 million, primarily related to severance and one-time employee termination benefits, demolition costs, and other closing costs. In addition, cumulative non-cash charges are expected to be in the range of $75 million to $85 million, primarily consisting of accelerated depreciation of property, plant and equipment and derecognition of the carrying value of land, which will offset the gross proceeds at closing. In the third quarter, the Company recorded $19 million of charges, comprised of $12 million of severance, $5 million of accelerated depreciation and $2 million of pension related charges in the quarter, associated with this agreement. 2020 Insulation Restructuring Actions During the fourth quarter of 2020, the Company took actions to avoid future capital outlays and reduce costs in its global Insulation segment, mainly through decisions to close certain manufacturing facilities in Shanghai, China and Fresno, Texas, and optimize a facility in Parainen, Finland. During the first nine months of 2021, the Company recorded $3 million of charges primarily related to accelerated depreciation. The Company expects to recognize approximately $1 million of incremental charges in 2021 related to these actions. 2020 Composites Restructuring Actions During 2020, the Company took actions to reduce costs throughout its global Composites segment primarily through global workforce reductions, closure of manufacturing lines and other asset write-offs. The Company does not expect to recognize significant incremental costs related to these actions. Acquisition-Related Restructuring Following the acquisitions of Paroc Group Oy ("Paroc") and Pittsburgh Corning Corporation and Pittsburgh Corning Europe NV (collectively, "Pittsburgh Corning") into the Company's Insulation segment, the Company took actions to realize expected synergies from the newly acquired operations. The Company does not expect to recognize significant incremental costs related to these actions. Consolidated Statements of Earnings (Loss) Classification The following table presents the impact and respective location of total restructuring costs on the Consolidated Statements of Earnings (Loss), which are included within Corporate, Other and Eliminations (in millions): Three Months Ended September 30, Nine Months Ended Type of cost Location 2021 2020 2021 2020 Accelerated depreciation Cost of sales $ 6 $ — $ 8 $ 1 Other exit costs Cost of sales — — — 3 Other exit costs Marketing and administrative expenses — — 1 — Severance Other (income) expenses, net 12 — 10 5 Other exit (gains)/costs (a) Other (income) expenses, net (15) — (14) 1 Other exit costs Non-operating income 2 — 2 — Total restructuring costs $ 5 $ — $ 7 $ 10 (a) Other exit (gains)/costs in the third quarter of 2021 includes a $15 million gain related to the sale of land in Thimmapur, India. Please refer to Note 11 of our 2017 Form 10-K for more information about the 2017 Cost Reduction actions. Summary of Unpaid Liabilities The following table summarizes the status of the unpaid liabilities from the Company's restructuring activities (in millions): Santa Clara Insulation Site 2020 Insulation Restructuring Actions 2020 Composites Restructuring Actions Acquisition-Related Restructuring Balance at December 31, 2020 $ — $ 2 $ 2 $ 9 Restructuring costs/(gains) 19 3 — (1) Payments — (2) (2) (2) Accelerated depreciation and other non-cash items (7) (2) — — Balance at September 30, 2021 $ 12 $ 1 $ — $ 6 Cumulative charges incurred $ 19 $ 26 $ 13 $ 28 As of September 30, 2021, the remaining liability balance is comprised of $19 million of severance, inclusive of $14 million of non-current severance and $5 million of severance the Company expects to pay over the next twelve months. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Details of the Company’s outstanding long-term debt, as well as the fair values, are as follows (in millions): September 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value 4.200% senior notes, net of discount and financing fees, due 2022 $ — n/a $ 184 106 % 4.200% senior notes, net of discount and financing fees, due 2024 396 109 % 396 111 % 3.400% senior notes, net of discount and financing fees, due 2026 397 108 % 397 111 % 3.950% senior notes, net of discount and financing fees, due 2029 446 112 % 445 115 % 3.875% senior notes, net of discount and financing fees, due 2030 297 111 % 297 115 % 7.000% senior notes, net of discount and financing fees, due 2036 368 144 % 368 142 % 4.300% senior notes, net of discount and financing fees, due 2047 589 116 % 588 120 % 4.400% senior notes, net of discount and financing fees, due 2048 390 118 % 390 121 % Various finance leases, due through 2036 (a) 97 100 % 78 100 % Other 2 n/a 2 n/a Total long-term debt 2,982 n/a 3,145 n/a Less – current portion (a) 24 100 % 19 100 % Long-term debt, net of current portion $ 2,958 n/a $ 3,126 n/a (a) The Company determined that the book value of the above noted long-term debt instruments approximates fair value. 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 $300 million of 2030 senior notes on May 12, 2020. Interest on the notes is payable semiannually in arrears on June 1 and December 1 each year, beginning on December 1, 2020. The proceeds from these notes were used for general corporate purposes. The Company issued $450 million of 2029 senior notes on August 12, 2019. 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 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 repay $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 repay $250 million of our 2016 senior notes and $100 million of our 2019 senior notes and pay down our Senior Revolving Credit Facility. On August 19, 2021, the Company issued a make-whole call to repay the remaining portion of its outstanding 2022 senior notes, and the redemption was completed in the third quarter of 2021. The Company recognized approximately $9 million of loss on extinguishment of debt in the third quarter of 2021 associated with these actions. On October 31, 2006, the Company issued $550 million of 2036 senior notes. The proceeds of these notes were used to pay certain unsecured and administrative claims, finance general working capital needs and for general corporate purposes. Collectively, the senior notes above are referred to as the “Senior Notes.” The Senior Notes are general unsecured obligations of the Company and rank pari passu with all existing and future senior unsecured indebtedness of the Company. The Company has the option to redeem all or part of the Senior Notes at any time at a “make-whole” redemption price. The Company is subject to certain covenants in connection with the issuance of the Senior Notes that it believes are usual and customary. The Company was in compliance with these covenants as of September 30, 2021. Senior Revolving Credit Facility The Company has an $800 million senior revolving credit facility (the "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 July 2021, the Senior Revolving Credit Facility was amended to extend the maturity date to July 2026. The new agreement also includes fallback language related to a benchmark reference rate replacement, when a LIBOR transition occurs, and eliminated the minimum required interest expense coverage ratio covenant. The Senior Revolving Credit Facility contains various covenants, including a maximum allowed leverage ratio, that the Company believes are usual and customary for a senior unsecured credit agreement. The Company was in compliance with these covenants as of September 30, 2021. Please refer to the Credit Facility Utilization section below for liquidity information as of September 30, 2021. Receivables Securitization Facility The Company has a Receivables Purchase Agreement (RPA) that is 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 2021, the securitization facility (the "Receivables Securitization Facility") was amended to extend the maturity date to April 2024. The new agreement also includes fallback language related to a benchmark reference rate replacement, when a LIBOR transition occurs. The RPA contains various covenants, including a maximum allowed leverage ratio that the Company believes are usual and customary for a securitization facility. The Company was in compliance with these covenants as of September 30, 2021. Please refer to the Credit Facility Utilization section below for liquidity information as of September 30, 2021. 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 September 30, 2021 Senior Revolving Credit Facility Receivables Securitization Facility Facility size or borrowing limit $ 800 $ 280 Collateral capacity limitation on availability n/a — Outstanding borrowings — — Outstanding letters of credit 4 1 Availability on facility $ 796 $ 279 Short-Term Debt Short-term borrowings were $2 million and $1 million as of September 30, 2021 and December 31, 2020, respectively. The short-term borrowings consisted of various operating lines of credit. The weighted average interest rate on all short-term borrowings was approximately 1.4% and 1.1% as of September 30, 2021 and December 31, 2020, respectively. |
PENSION PLANS AND OTHER POSTRET
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | 9 Months Ended |
Sep. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS | Pension Plans The Company sponsors defined benefit pension plans. Under the plans, pension benefits are based on an employee’s years of service and, for certain categories of employees, qualifying compensation. Company contributions to these pension plans are determined by an independent actuary to meet or exceed minimum funding requirements. In our non-U.S. plans, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average future service period of plan participants expected to receive benefits. In our U.S. plans, the unrecognized cost of any retroactive amendments and actuarial gains and losses are amortized over the average remaining life expectancy of the inactive participants as substantially all of the plan participants are inactive. The following table provides information regarding pension expense recognized (in millions): Three Months Ended September 30, 2021 2020 U.S. Non-U.S. Total U.S. Non-U.S. Total Components of Net Periodic Pension Cost Service cost $ 1 $ 1 $ 2 $ 1 $ 1 $ 2 Interest cost 6 3 9 7 2 9 Expected return on plan assets (9) (5) (14) (11) (4) (15) Amortization of actuarial loss 3 1 4 3 1 4 Contractual termination benefit 2 — 2 — — — Net periodic pension cost $ 3 $ — $ 3 $ — $ — $ — Nine Months Ended September 30, 2021 2020 U.S. Non-U.S. Total U.S. Non-U.S. Total Components of Net Periodic Pension Cost Service cost $ 4 $ 4 $ 8 $ 4 $ 3 $ 7 Interest cost 17 7 24 21 7 28 Expected return on plan assets (27) (14) (41) (34) (12) (46) Amortization of actuarial loss 9 3 12 9 3 12 Contractual termination benefit 2 — 2 — — — Net periodic pension cost $ 5 $ — $ 5 $ — $ 1 $ 1 The Company does not expect to contribute to the U.S. pension plans during 2021. The Company expects to contribute $25 million in cash to non-U.S. plans during 2021. The Company made cash contributions of $3 million to the plans during the nine months ended September 30, 2021. Postemployment and Postretirement Benefits Other than Pensions ("OPEB") The Company maintains healthcare and life insurance benefit plans for certain retired employees and their dependents. The health care plans in the United States are non-funded and pay either (1) stated percentages of covered medically necessary expenses, after subtracting payments by Medicare or other providers and after stated deductibles have been met, or (2) fixed amounts of medical expense reimbursement. The following table provides the components of net periodic benefit cost for aggregated U.S. and non-U.S. plans for the periods indicated (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Components of Net Periodic Benefit Cost Service cost $ — $ — $ 1 $ 1 Interest cost 1 1 3 4 Amortization of prior service credit — — (1) (2) Amortization of actuarial gain (2) (2) (6) (6) Net periodic benefit income $ (1) $ (1) $ (3) $ (3) |
CONTINGENT LIABILITIES AND OTHE
CONTINGENT LIABILITIES AND OTHER MATTERS | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES AND OTHER MATTERS | CONTINGENT LIABILITIES AND OTHER MATTERS The Company may be involved in various legal and regulatory proceedings relating to employment, antitrust, tax, product liability, environmental, contracts, intellectual property and other matters (collectively, “Proceedings”). The Company regularly reviews the status of such Proceedings along with legal counsel. Liabilities for such Proceedings are recorded when it is probable that the liability has been incurred and when the amount of the liability can be reasonably estimated. Liabilities are adjusted when additional information becomes available. Management believes that the amount of any reasonably possible losses in excess of any amounts accrued, if any, with respect to such Proceedings or any other known claim, including the matters described below under the caption Environmental Matters (the “Environmental Matters”), are not material to the Company’s financial statements. Management believes that the ultimate disposition of the Proceedings and the Environmental Matters will not have a material adverse effect on the Company’s financial condition. While the likelihood is remote, the disposition of the Proceedings and Environmental Matters could have a material impact on the results of operations, cash flows or liquidity in any given reporting period. Litigation and Regulatory Proceedings The Company is involved in litigation and regulatory proceedings from time to time in the regular course of its business. The Company believes that adequate provisions for resolution of all contingencies, claims and pending matters have been made for probable losses that are reasonably estimable. Environmental Matters The Company has established policies and procedures designed to ensure that its operations are conducted in compliance with all relevant laws and regulations and that enable the Company to meet its high standards for corporate sustainability and environmental stewardship. Our manufacturing facilities are subject to numerous foreign, federal, state and local laws and regulations relating to the presence of hazardous materials, pollution and protection of the environment, including emissions to air, reductions of greenhouse gases, discharges to water, management of hazardous materials, handling and disposal of solid wastes, use of chemicals in our manufacturing processes, 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 volatile organic air emissions, and protection of biodiversity. |
STOCK COMPENSATION
STOCK COMPENSATION | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK COMPENSATION | 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 authorizes grants of stock options, stock appreciation rights, restricted stock awards, restricted stock units, bonus stock awards and performance share awards. At September 30, 2021, the number of shares remaining available under the 2019 Stock Plan for all stock awards was approximately 3.1 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 (Loss) is as follows (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Total stock-based compensation expense $ 12 $ 11 $ 36 $ 31 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 September 30, 2021, there was no unrecognized compensation cost related to stock options and the range of exercise prices on outstanding stock options was $37.65 - $42.16. The following table summarizes the Company’s stock option activity: Weighted-Average Number of Options Exercise Price Remaining Intrinsic Value (in millions) Outstanding, December 31, 2020 361,775 $ 37.77 1.50 $ 14 Exercised (215,875) 37.42 Outstanding, September 30, 2021 145,900 $ 38.30 1.09 $ 7 Exercisable, September 30, 2021 145,900 $ 38.30 1.09 $ 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 RSUs 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 following table summarizes the Company’s RSU plans: Number of RSUs Weighted-Average Balance at December 31, 2020 1,419,454 $ 54.99 Granted 352,126 83.72 Vested (449,207) 56.51 Forfeited (46,074) 66.15 Balance at September 30, 2021 1,276,299 $ 61.83 As of September 30, 2021, there was $37 million of total unrecognized compensation cost related to RSUs. That cost is expected to be recognized over a weighted-average period of 2.44 years. The total grant date fair value of shares vested during the nine months ended September 30, 2021 and 2020 was $25 million and $22 million, respectively. Performance Share Awards and Performance Share Units The Company has granted performance share awards and performance share units (collectively referred to as “PSUs”) as a part of its long-term incentive plan. All outstanding performance grants will fully settle in stock. The amount of stock ultimately distributed from all performance shares is contingent on meeting internal company-based metrics or an external-based stock performance metric. In the nine months ended September 30, 2021, the Company granted both internal company-based and external-based metric PSUs. Internal Company-based metrics The internal company-based metrics are based on various Company metrics and typically vest over a three-year period. The amount of stock distributed will vary from 0% to 300% of PSUs awarded depending on each award's design and performance versus the internal Company-based metrics. The initial fair value for all internal Company-based metric PSUs assumes that the performance goals will be achieved and is based on the grant date stock price. This assumption is monitored quarterly and if it becomes probable that such goals will not be achieved or will be exceeded, compensation expense recognized will be adjusted and previous surplus compensation expense recognized will be reversed or additional expense will be recognized. The expected term represents the period from the grant date to the end of the vesting period. Pro-rata vesting may be utilized in the case of death, disability or approved retirement and awards, if earned, will be paid at the end of the vesting period. External-based metrics The external-based metrics vest after a three In the nine months ended September 30, 2021, the Company granted separate tranches of external-based metric PSU's subject to a Monte Carlo simulation. The following table provides a range of the assumptions for shares granted in 2021: Expected volatility 42.74% — 43.67% Risk free interest rate 0.18% — 0.24% Expected term (in years) 2.56 — 2.90 Grant date fair value of units granted $99.19 — $127.37 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 September 30, 2021, there was $21 million total unrecognized compensation cost related to PSUs. That cost is expected to be recognized over a weighted-average period of 1.84 years. There were no shares vested during the nine months ended September 30, 2021. The total grant date fair value of shares vested during the nine months ended September 30, 2020 was $1 million. The following table summarizes the Company’s PSU activity: Number Weighted-Average Balance at December 31, 2020 323,361 $ 61.78 Granted 153,858 85.81 Forfeited (23,130) 65.59 Balance at September 30, 2021 454,089 $ 69.63 Employee Stock Purchase Plan The Owens Corning Employee Stock Purchase Plan (ESPP) is a tax-qualified plan under Section 423 of the Internal Revenue Code. The purchase price of shares purchased under the ESPP is equal to 85% of the lower of the fair market value of shares of Owens Corning common stock at the beginning or ending of the offering period, which is a six-month period ending on May 31 and November 30 of each year. On April 16, 2020, the Company's stockholders approved the Amended and Restated Owens Corning Employee Stock Purchase Plan which increased the number of shares available for issuance under the plan by 4.2 million shares. As of September 30, 2021, 4.0 million shares remain available for purchase. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The following table is a reconciliation of weighted-average shares for calculating basic and diluted earnings (loss) per-share (in millions, except per share amounts): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net earnings (loss) attributable to Owens Corning $ 260 $ 206 $ 768 $ (615) Weighted-average number of shares outstanding used for basic earnings (loss) per share 103.1 108.8 104.4 108.7 Non-vested restricted and performance shares 0.7 0.6 0.7 — Options to purchase common stock 0.1 0.1 0.1 — Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings (loss) per share 103.9 109.5 105.2 108.7 Earnings (loss) per common share attributable to Owens Corning common stockholders: Basic $ 2.52 $ 1.89 $ 7.36 $ (5.66) Diluted $ 2.50 $ 1.88 $ 7.30 $ (5.66) For the three and nine months ended September 30, 2021, there were no non-vested restricted or performance shares that had an anti-dilutive effect on earnings per share. For the three months ended September 30, 2020, there were no non-vested restricted or performance shares that had an anti-dilutive effect on earnings per share. For the nine months ended September 30, 2020, diluted earnings per share was equal to basic earnings per share due to the net loss attributable to Owens Corning. On December 3, 2020, the Board of Directors approved a share buy-back program under which the Company is authorized to repurchase up to 10 million shares of the Company’s outstanding common stock (the “Repurchase Authorization”). The Repurchase Authorization enables the Company to repurchase shares through the open market, privately negotiated, or other transactions. The actual number of shares repurchased will depend on timing, market conditions and other factors and is at the Company’s discretion. The Company repurchased 4.6 million shares of its common stock for $422 million during the nine months ended September 30, 2021, under the Repurchase Authorization. As of September 30, 2021, 4.9 million shares remain available for repurchase under the Repurchase Authorization. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The following table provides the Income tax expense (in millions) and effective tax rate for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Income tax expense $ 94 $ 56 $ 250 $ 119 Effective tax rate 27 % 21 % 25 % (24) % The difference between the effective tax rate and the U.S. federal statutory tax rate of 21% for the three months ended September 30, 2021 is primarily due to U.S. state and local income tax expense, U.S. federal taxes on foreign earnings, and other discrete adjustments. The difference between the effective tax rate and the U.S. federal statutory tax rate of 21% for the nine months ended September 30, 2021 is primarily due to U.S. state and local income tax expense, U.S. federal taxes on foreign earnings, adjustments to valuation allowances against certain deferred tax assets, excess tax benefits related to stock compensation, and other discrete adjustments. The effective tax rate and the U.S. federal statutory tax rate for the three months ended September 30, 2020 is 21%. The effective tax rate was positively impacted by final regulations on global intangible low-taxed income (GILTI), offset by the impact of taxes on foreign earnings, U.S. state and local income tax expense, and other discrete adjustments. The difference between the effective tax rate and the U.S. federal statutory tax rate of 21% for the nine months ended September 30, 2020 is primarily a result of charges related to the impairment of goodwill and certain other indefinite-lived intangible assets recorded in the first quarter of 2020, which were mostly non-deductible. In addition, non-cash charges of $15 million were recorded related to adjustments to valuation allowances against certain deferred tax assets. The remaining difference between the statutory rate of 21% and the effective rate was driven by the impact of recording U.S. state and local income tax expense and U.S. federal taxes on foreign earnings. On July 20, 2020, the Internal Revenue Service (IRS) issued final regulations under IRC Section 951A permitting a taxpayer to elect to exclude from its inclusion of GILTI items of income subject to a high effective rate of foreign tax. As a result of the final regulations, the Company recorded a net non-cash income tax benefit of $13 million in the third quarter of 2020 relating to the 2018 and 2019 tax years and an increase in the valuation allowance. The Company continues its current practice of asserting indefinite reinvestment in accordance with ASC 740 based on the laws as of enactment of the tax legislation commonly known as the U.S. Tax Cuts and Jobs Act of 2017. |
CHANGES IN ACCUMULATED OTHER CO
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME The following table summarizes the changes in accumulated other comprehensive income (deficit) (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Currency Translation Adjustment Beginning balance $ (233) $ (351) $ (220) $ (282) Net investment hedge amounts classified into AOCI, net of tax 4 (9) 7 20 Gain/(loss) on foreign currency translation (39) 46 (55) (52) Other comprehensive income/(loss), net of tax (35) 37 (48) (32) Ending balance $ (268) $ (314) $ (268) $ (314) Pension and Other Postretirement Adjustment Beginning balance $ (374) $ (321) $ (372) $ (326) Amounts reclassified from AOCI to net earnings, net of tax (a) 2 (3) 4 4 Amounts classified into AOCI, net of tax (b) 31 — 27 (2) Other comprehensive income/(loss), net of tax 33 (3) 31 2 Ending balance $ (341) $ (324) $ (341) $ (324) Hedging Adjustment Beginning balance $ 14 $ (3) $ 4 $ (2) Amounts reclassified from AOCI to net earnings, net of tax (c) (3) 2 (5) (2) Amounts classified into AOCI, net of tax 15 1 27 4 Other comprehensive income, net of tax 12 3 22 2 Ending balance $ 26 $ — $ 26 $ — Total AOCI ending balance $ (583) $ (638) $ (583) $ (638) (a) These AOCI components are included in the computation of total Pension and Other postretirement expense and are recorded in Non-operating income. See Note 11 for additional information. (b) Amounts classified into AOCI, net of tax includes the impact of a pension plan remeasurement that occurred in the third quarter of 2021 related to the purchase and sale agreement for the Company's Insulation site in Santa Clara, California. See Note 9 for additional information. (c) 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 or Interest expense, net depending on the hedged item. See Note 4 for additional information. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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. For the three months ended September 30, 2021 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 83 $ 312 $ 796 $ (60) $ 1,131 U.S. commercial and industrial 163 181 38 — 382 Total United States 246 493 834 (60) 1,513 Europe 161 179 5 (2) 343 Asia-Pacific 136 48 1 — 185 Rest of world 48 95 29 — 172 NET SALES $ 591 $ 815 $ 869 $ (62) $ 2,213 For the three months ended September 30, 2020 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 76 $ 257 $ 691 $ (56) $ 968 U.S. commercial and industrial 136 150 43 (3) 326 Total United States 212 407 734 (59) 1,294 Europe 131 155 3 — 289 Asia-Pacific 141 43 3 — 187 Rest of world 37 76 21 — 134 NET SALES $ 521 $ 681 $ 761 $ (59) $ 1,904 For the nine months ended September 30, 2021 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 241 $ 860 $ 2,302 $ (181) $ 3,222 U.S. commercial and industrial 471 520 93 — 1,084 Total United States 712 1,380 2,395 (181) 4,306 Europe 484 526 13 (3) 1,020 Asia-Pacific 403 137 6 — 546 Rest of world 134 278 83 — 495 NET SALES $ 1,733 $ 2,321 $ 2,497 $ (184) $ 6,367 For the nine months ended September 30, 2020 Reportable Segments Composites Insulation Roofing Eliminations Consolidated Disaggregation Categories U.S. residential $ 200 $ 683 $ 1,798 $ (151) $ 2,530 U.S. commercial and industrial 397 448 110 (3) 952 Total United States 597 1,131 1,908 (154) 3,482 Europe 379 444 10 (1) 832 Asia-Pacific 346 107 8 — 461 Rest of world 91 197 67 — 355 NET SALES $ 1,413 $ 1,879 $ 1,993 $ (155) $ 5,130 |
Schedule of Earnings before Interest and Taxes | The following table summarizes EBIT by segment (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Reportable Segments Composites $ 101 $ 55 $ 278 $ 105 Insulation 124 73 318 144 Roofing 212 196 602 408 Total reportable segments 437 324 1,198 657 Restructuring costs (20) — (22) (10) Gain on sale of land in India 15 — 15 — Gains on sale of certain precious metals — 7 41 26 Goodwill impairment charge — — — (944) Intangible assets impairment charge — — — (43) Recognition of acquisition inventory fair value step-up (1) — (1) — General corporate expense and other (37) (35) (108) (85) Total corporate, other and eliminations (43) (28) (75) (1,056) EBIT $ 394 $ 296 $ 1,123 $ (399) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventories consist of the following (in millions): September 30, 2021 December 31, 2020 Finished goods $ 559 $ 532 Materials and supplies 390 323 Total inventories $ 949 $ 855 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 December 31, 2020 Derivative assets designated as hedging instruments: Net investment hedges: Cross-currency swaps Other current assets $ 5 $ 5 Cash flow hedges: Natural gas forward swaps Other current assets $ 25 $ 2 Treasury interest rate lock Other non-current assets $ 12 $ 4 Derivative liabilities designated as hedging instruments: Net investment hedges: Cross-currency swaps Other liabilities $ 2 $ 11 Cash flow hedges: Foreign exchange forward contracts Other current liabilities $ 1 $ — Derivative assets not designated as hedging instruments: Foreign exchange forward contracts Other current assets $ 13 $ 2 Derivative liabilities not designated as hedging instruments: Foreign exchange forward contracts Other current liabilities $ 1 $ 45 |
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 (Loss) (in millions): Three Months Ended Nine Months Ended Location 2021 2020 2021 2020 Derivative activity designated as hedging instruments: Natural gas cash flow hedges: Amount of (gain)/loss reclassified from AOCI (as defined below) into earnings (a) Cost of sales $ (4) $ 1 $ (6) $ 5 Cross-currency swap net investment hedges: Amount of gain recognized in earnings on derivative amounts excluded from effectiveness testing Interest expense, net $ (1) $ (1) $ (4) $ (6) Derivative activity not designated as hedging instruments: Foreign currency: Amount of (gain)/loss recognized in earnings (b) Other (income) expenses, net $ (14) $ 29 $ (30) $ 20 (a) Accumulated Other Comprehensive Earnings (Deficit) ("AOCI") (b) Gains related to foreign currency derivatives were substantially offset by net revaluation impacts on foreign currency denominated balance sheet exposures, which were also recorded in Other (income) expenses, net. Please refer to the "Other Derivatives" section below for additional detail. Consolidated Statements of Comprehensive Earnings (Loss) Activity The following table presents the impact of derivative activities on the Consolidated Statements of Comprehensive Earnings (Loss) (in millions): Amount of (Gain) Loss Recognized in Comprehensive Earnings (Loss) Three Months Ended Nine Months Ended Hedging Type Derivative Financial Instrument 2021 2020 2021 2020 Net investment hedge Cross-currency swaps $ (5) $ 11 $ (9) $ (27) Cash flow hedge Natural gas forward swaps $ (17) $ (3) $ (23) $ (3) Cash flow hedge Treasury interest rate lock $ — $ (1) $ (8) $ 1 Cash flow hedge Foreign exchange forward contracts $ — $ — $ 1 $ — |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Composites Insulation Roofing Total Balance at December 31, 2020 $ 57 $ 532 $ 400 $ 989 Acquisitions (see Note 7) 16 — — 16 Additions 3 — — 3 Foreign Currency Translation (1) (10) (2) (13) Balance at September 30, 2021 $ 75 $ 522 $ 398 $ 995 |
Schedule of Finite-Lived Intangible Assets | Other intangible assets consist of the following (in millions): September 30, 2021 December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Trademarks $ 1,102 $ — $ 1,102 $ 1,109 $ — $ 1,109 Customer relationships 567 (215) 352 570 (200) 370 Technology 321 (185) 136 327 (172) 155 Other (a) 43 (4) 39 36 (3) 33 Total other intangible assets $ 2,033 $ (404) $ 1,629 $ 2,042 $ (375) $ 1,667 |
Finite-lived Intangible Assets Amortization Expense | The estimated amortization expense for intangible assets for the next five years is as follows (in millions): Period Amortization 2022 $ 45 2023 $ 43 2024 $ 39 2025 $ 38 2026 $ 38 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consist of the following (in millions): September 30, December 31, 2020 Land $ 222 $ 222 Buildings and leasehold improvements 1,255 1,241 Machinery and equipment 5,277 5,155 Construction in progress 270 292 7,024 6,910 Accumulated depreciation (3,257) (3,101) Property, plant and equipment, net $ 3,767 $ 3,809 |
WARRANTIES (Tables)
WARRANTIES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | The Company records a liability for warranty obligations at the date the related products are sold. Adjustments are made as new information becomes available. Please refer to Note 1 of our 2020 Form 10-K for information about our separately-priced extended warranty contracts. A reconciliation of the warranty liability is as follows (in millions): Nine Months Ended September 30, 2021 2020 Beginning balance $ 72 $ 64 Amounts accrued for current year 17 16 Settlements of warranty claims (10) (10) Ending balance $ 79 $ 70 |
RESTRUCTURING AND ACQUISITION_2
RESTRUCTURING AND ACQUISITION-RELATED COSTS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs on the Consolidated Statements of Earnings | Consolidated Statements of Earnings (Loss) Classification The following table presents the impact and respective location of total restructuring costs on the Consolidated Statements of Earnings (Loss), which are included within Corporate, Other and Eliminations (in millions): Three Months Ended September 30, Nine Months Ended Type of cost Location 2021 2020 2021 2020 Accelerated depreciation Cost of sales $ 6 $ — $ 8 $ 1 Other exit costs Cost of sales — — — 3 Other exit costs Marketing and administrative expenses — — 1 — Severance Other (income) expenses, net 12 — 10 5 Other exit (gains)/costs (a) Other (income) expenses, net (15) — (14) 1 Other exit costs Non-operating income 2 — 2 — Total restructuring costs $ 5 $ — $ 7 $ 10 |
Schedule of Restructuring Reserve by Type of Cost | Summary of Unpaid Liabilities The following table summarizes the status of the unpaid liabilities from the Company's restructuring activities (in millions): Santa Clara Insulation Site 2020 Insulation Restructuring Actions 2020 Composites Restructuring Actions Acquisition-Related Restructuring Balance at December 31, 2020 $ — $ 2 $ 2 $ 9 Restructuring costs/(gains) 19 3 — (1) Payments — (2) (2) (2) Accelerated depreciation and other non-cash items (7) (2) — — Balance at September 30, 2021 $ 12 $ 1 $ — $ 6 Cumulative charges incurred $ 19 $ 26 $ 13 $ 28 As of September 30, 2021, the remaining liability balance is comprised of $19 million of severance, inclusive of $14 million of non-current severance and $5 million of severance the Company expects to pay over the next twelve months. |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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): September 30, 2021 December 31, 2020 Carrying Value Fair Value Carrying Value Fair Value 4.200% senior notes, net of discount and financing fees, due 2022 $ — n/a $ 184 106 % 4.200% senior notes, net of discount and financing fees, due 2024 396 109 % 396 111 % 3.400% senior notes, net of discount and financing fees, due 2026 397 108 % 397 111 % 3.950% senior notes, net of discount and financing fees, due 2029 446 112 % 445 115 % 3.875% senior notes, net of discount and financing fees, due 2030 297 111 % 297 115 % 7.000% senior notes, net of discount and financing fees, due 2036 368 144 % 368 142 % 4.300% senior notes, net of discount and financing fees, due 2047 589 116 % 588 120 % 4.400% senior notes, net of discount and financing fees, due 2048 390 118 % 390 121 % Various finance leases, due through 2036 (a) 97 100 % 78 100 % Other 2 n/a 2 n/a Total long-term debt 2,982 n/a 3,145 n/a Less – current portion (a) 24 100 % 19 100 % Long-term debt, net of current portion $ 2,958 n/a $ 3,126 n/a |
Schedule of Line of Credit Facilities | The following table shows how the Company utilized its primary sources of liquidity (in millions): Balance at September 30, 2021 Senior Revolving Credit Facility Receivables Securitization Facility Facility size or borrowing limit $ 800 $ 280 Collateral capacity limitation on availability n/a — Outstanding borrowings — — Outstanding letters of credit 4 1 Availability on facility $ 796 $ 279 |
PENSION PLANS AND OTHER POSTR_2
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Pension Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Benefit Costs | The following table provides information regarding pension expense recognized (in millions): Three Months Ended September 30, 2021 2020 U.S. Non-U.S. Total U.S. Non-U.S. Total Components of Net Periodic Pension Cost Service cost $ 1 $ 1 $ 2 $ 1 $ 1 $ 2 Interest cost 6 3 9 7 2 9 Expected return on plan assets (9) (5) (14) (11) (4) (15) Amortization of actuarial loss 3 1 4 3 1 4 Contractual termination benefit 2 — 2 — — — Net periodic pension cost $ 3 $ — $ 3 $ — $ — $ — Nine Months Ended September 30, 2021 2020 U.S. Non-U.S. Total U.S. Non-U.S. Total Components of Net Periodic Pension Cost Service cost $ 4 $ 4 $ 8 $ 4 $ 3 $ 7 Interest cost 17 7 24 21 7 28 Expected return on plan assets (27) (14) (41) (34) (12) (46) Amortization of actuarial loss 9 3 12 9 3 12 Contractual termination benefit 2 — 2 — — — Net periodic pension cost $ 5 $ — $ 5 $ — $ 1 $ 1 |
Other Postretirement Benefits Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Benefit Costs | The following table provides the components of net periodic benefit cost for aggregated U.S. and non-U.S. plans for the periods indicated (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Components of Net Periodic Benefit Cost Service cost $ — $ — $ 1 $ 1 Interest cost 1 1 3 4 Amortization of prior service credit — — (1) (2) Amortization of actuarial gain (2) (2) (6) (6) Net periodic benefit income $ (1) $ (1) $ (3) $ (3) |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award | Stock-based compensation expense included in Marketing and administrative expenses in the accompanying Consolidated Statements of Earnings (Loss) is as follows (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Total stock-based compensation expense $ 12 $ 11 $ 36 $ 31 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the Company’s stock option activity: Weighted-Average Number of Options Exercise Price Remaining Intrinsic Value (in millions) Outstanding, December 31, 2020 361,775 $ 37.77 1.50 $ 14 Exercised (215,875) 37.42 Outstanding, September 30, 2021 145,900 $ 38.30 1.09 $ 7 Exercisable, September 30, 2021 145,900 $ 38.30 1.09 $ 7 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | The following table summarizes the Company’s RSU plans: Number of RSUs Weighted-Average Balance at December 31, 2020 1,419,454 $ 54.99 Granted 352,126 83.72 Vested (449,207) 56.51 Forfeited (46,074) 66.15 Balance at September 30, 2021 1,276,299 $ 61.83 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Expected volatility 42.74% — 43.67% Risk free interest rate 0.18% — 0.24% Expected term (in years) 2.56 — 2.90 Grant date fair value of units granted $99.19 — $127.37 |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest | The following table summarizes the Company’s PSU activity: Number Weighted-Average Balance at December 31, 2020 323,361 $ 61.78 Granted 153,858 85.81 Forfeited (23,130) 65.59 Balance at September 30, 2021 454,089 $ 69.63 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 (loss) per-share (in millions, except per share amounts): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Net earnings (loss) attributable to Owens Corning $ 260 $ 206 $ 768 $ (615) Weighted-average number of shares outstanding used for basic earnings (loss) per share 103.1 108.8 104.4 108.7 Non-vested restricted and performance shares 0.7 0.6 0.7 — Options to purchase common stock 0.1 0.1 0.1 — Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings (loss) per share 103.9 109.5 105.2 108.7 Earnings (loss) per common share attributable to Owens Corning common stockholders: Basic $ 2.52 $ 1.89 $ 7.36 $ (5.66) Diluted $ 2.50 $ 1.88 $ 7.30 $ (5.66) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The following table provides the Income tax expense (in millions) and effective tax rate for the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Income tax expense $ 94 $ 56 $ 250 $ 119 Effective tax rate 27 % 21 % 25 % (24) % |
CHANGES IN ACCUMULATED OTHER _2
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income (deficit) (in millions): Three Months Ended Nine Months Ended 2021 2020 2021 2020 Currency Translation Adjustment Beginning balance $ (233) $ (351) $ (220) $ (282) Net investment hedge amounts classified into AOCI, net of tax 4 (9) 7 20 Gain/(loss) on foreign currency translation (39) 46 (55) (52) Other comprehensive income/(loss), net of tax (35) 37 (48) (32) Ending balance $ (268) $ (314) $ (268) $ (314) Pension and Other Postretirement Adjustment Beginning balance $ (374) $ (321) $ (372) $ (326) Amounts reclassified from AOCI to net earnings, net of tax (a) 2 (3) 4 4 Amounts classified into AOCI, net of tax (b) 31 — 27 (2) Other comprehensive income/(loss), net of tax 33 (3) 31 2 Ending balance $ (341) $ (324) $ (341) $ (324) Hedging Adjustment Beginning balance $ 14 $ (3) $ 4 $ (2) Amounts reclassified from AOCI to net earnings, net of tax (c) (3) 2 (5) (2) Amounts classified into AOCI, net of tax 15 1 27 4 Other comprehensive income, net of tax 12 3 22 2 Ending balance $ 26 $ — $ 26 $ — Total AOCI ending balance $ (583) $ (638) $ (583) $ (638) (a) These AOCI components are included in the computation of total Pension and Other postretirement expense and are recorded in Non-operating income. See Note 11 for additional information. (b) Amounts classified into AOCI, net of tax includes the impact of a pension plan remeasurement that occurred in the third quarter of 2021 related to the purchase and sale agreement for the Company's Insulation site in Santa Clara, California. See Note 9 for additional information. (c) 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 or Interest expense, net depending on the hedged item. See Note 4 for additional information. |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | ||||||
Contract liability | $ 78 | $ 78 | $ 66 | |||
Contract liability, revenue recognized | 15 | |||||
Restricted cash | 7 | $ 7 | 7 | $ 7 | $ 7 | $ 7 |
Goodwill impairment charge | 0 | $ 0 | 0 | $ 944 | ||
Related party transaction, expenses | 23 | 70 | ||||
Due to Related Parties | 4 | 4 | ||||
Lessee, operating lease, lease not yet commenced | $ 35 | $ 35 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Number of reportable segments | segment | 3 | |||
Disaggregated revenue | $ 2,213 | $ 1,904 | $ 6,367 | $ 5,130 |
NET SALES | 2,213 | 1,904 | 6,367 | 5,130 |
EBIT | 394 | 296 | 1,123 | (399) |
Restructuring costs | (20) | 0 | (22) | (10) |
Gain on sale of land in India | 15 | 0 | 15 | 0 |
Gains on sale of certain precious metals | 0 | 7 | 41 | 26 |
Goodwill impairment charge | 0 | 0 | 0 | (944) |
Intangible assets impairment charge | 0 | 0 | (43) | |
Recognition of acquisition inventory fair value step-up | (1) | 0 | (1) | 0 |
General corporate expense and other | (37) | (35) | (108) | (85) |
Eliminations | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | (62) | (59) | (184) | (155) |
EBIT | (43) | (28) | (75) | (1,056) |
U.S. | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 1,513 | 1,294 | 4,306 | 3,482 |
U.S. | Eliminations | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | (60) | (59) | (181) | (154) |
U.S. | Residential | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 1,131 | 968 | 3,222 | 2,530 |
U.S. | Residential | Eliminations | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | (60) | (56) | (181) | (151) |
U.S. | Commercial and Industrial Sector | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 382 | 326 | 1,084 | 952 |
U.S. | Commercial and Industrial Sector | Eliminations | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 0 | (3) | 0 | (3) |
Europe | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 343 | 289 | 1,020 | 832 |
Europe | Eliminations | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | (2) | 0 | (3) | (1) |
Asia Pacific | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 185 | 187 | 546 | 461 |
Asia Pacific | Eliminations | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 0 | 0 | 0 | 0 |
Rest of world | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 172 | 134 | 495 | 355 |
Rest of world | Eliminations | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 0 | 0 | 0 | 0 |
Composites | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 591 | 521 | 1,733 | 1,413 |
EBIT | 101 | 55 | 278 | 105 |
Composites | U.S. | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 246 | 212 | 712 | 597 |
Composites | U.S. | Residential | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 83 | 76 | 241 | 200 |
Composites | U.S. | Commercial and Industrial Sector | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 163 | 136 | 471 | 397 |
Composites | Europe | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 161 | 131 | 484 | 379 |
Composites | Asia Pacific | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 136 | 141 | 403 | 346 |
Composites | Rest of world | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 48 | 37 | 134 | 91 |
Insulation | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 815 | 681 | 2,321 | 1,879 |
EBIT | 124 | 73 | 318 | 144 |
Insulation | U.S. | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 493 | 407 | 1,380 | 1,131 |
Insulation | U.S. | Residential | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 312 | 257 | 860 | 683 |
Insulation | U.S. | Commercial and Industrial Sector | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 181 | 150 | 520 | 448 |
Insulation | Europe | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 179 | 155 | 526 | 444 |
Insulation | Asia Pacific | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 48 | 43 | 137 | 107 |
Insulation | Rest of world | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 95 | 76 | 278 | 197 |
Roofing | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 869 | 761 | 2,497 | 1,993 |
EBIT | 212 | 196 | 602 | 408 |
Roofing | U.S. | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 834 | 734 | 2,395 | 1,908 |
Roofing | U.S. | Residential | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 796 | 691 | 2,302 | 1,798 |
Roofing | U.S. | Commercial and Industrial Sector | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 38 | 43 | 93 | 110 |
Roofing | Europe | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 5 | 3 | 13 | 10 |
Roofing | Asia Pacific | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 1 | 3 | 6 | 8 |
Roofing | Rest of world | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Disaggregated revenue | 29 | 21 | 83 | 67 |
Total Segments | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
EBIT | $ 437 | 324 | $ 1,198 | $ 657 |
Moodys Investors Service | ||||
Segment Reporting, Significant Reconciling Item [Line Items] | ||||
Goodwill impairment charge | 0 | |||
Intangible assets impairment charge | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 559 | $ 532 |
Materials and supplies | 390 | 323 |
Total inventories | $ 949 | $ 855 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS BALANCE SHEET (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Net Investment Hedging | Cross Currency Interest Rate Contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of (gain)/loss recognized in earnings | $ 5 | $ (11) | $ 9 | $ 27 | |
Cash Flow Hedging | Capital Spend Hedge | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of (gain)/loss recognized in earnings | 0 | 0 | (1) | 0 | |
Nondesignated as Hedging Instrument | Foreign Exchange Contract | Other Expense [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Amount of (gain)/loss recognized in earnings | (14) | $ 29 | (30) | $ 20 | |
Other current assets | Designated as Hedging Instrument | Net Investment Hedging | Cross Currency Interest Rate Contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative asset, fair value | 5 | 5 | $ 5 | ||
Other current assets | Designated as Hedging Instrument | Cash Flow Hedging | Cross Currency Interest Rate Contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative asset, fair value | 25 | 25 | 2 | ||
Other current assets | Nondesignated as Hedging Instrument | Foreign Exchange Contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative asset, fair value | 13 | 13 | 2 | ||
Other non-current assets | Designated as Hedging Instrument | Cash Flow Hedging | Cross Currency Interest Rate Contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative asset, fair value | 12 | 12 | 4 | ||
Other liabilities | Designated as Hedging Instrument | Net Investment Hedging | Cross Currency Interest Rate Contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative liability, fair value | 2 | 2 | 11 | ||
Other liabilities | Designated as Hedging Instrument | Cash Flow Hedging | Cross Currency Interest Rate Contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative liability, fair value | 1 | 1 | 0 | ||
Current liabilities | Nondesignated as Hedging Instrument | Foreign Exchange Contract | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative liability, fair value | $ 1 | $ 1 | $ 45 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS INCOME STATEMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cost of sales | Designated as Hedging Instrument | Energy Related Derivative | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of (gain)/loss reclassified from AOCI (as defined below) into earnings (a) | $ 4 | $ (1) | $ 6 | $ (5) |
Interest expense, net | Designated as Hedging Instrument | Interest Rate Swap | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Derivative, Gain on Derivative | (1) | (1) | (4) | (6) |
Other (income) expenses, net | Nondesignated as Hedging Instrument | Foreign Exchange Contract | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of (gain)/loss recognized in earnings | (14) | 29 | (30) | 20 |
Net Investment Hedging | Cross Currency Interest Rate Contract | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of (gain)/loss recognized in earnings | 5 | (11) | 9 | 27 |
Cash Flow Hedging | Energy Related Derivative | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of (gain)/loss recognized in earnings | 17 | 3 | 23 | 3 |
Cash Flow Hedging | Treasury interest rate lock | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of (gain)/loss recognized in earnings | 0 | 1 | 8 | (1) |
Cash Flow Hedging | Capital Spend Hedge | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Amount of (gain)/loss recognized in earnings | $ 0 | $ 0 | $ (1) | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS DERIVATIVE FINANCIAL INSTRUMENTS CASH FLOW (Details) MMBTU in Millions, $ in Millions | 3 Months Ended | |
Jun. 30, 2020USD ($) | Sep. 30, 2021USD ($)MMBTU | |
Derivative [Line Items] | ||
Derivative, nonmonetary notional amount | MMBTU | 2 | |
Cross Currency Interest Rate Contract | ||
Derivative [Line Items] | ||
Proceeds from derivative instrument | $ 30 | |
Foreign exchange forward contracts | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 26 | |
Treasury interest rate lock | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 175 | |
Derivative, fixed interest rate | 0.994% | |
United States of America, Dollars | Cross Currency Interest Rate Contract | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 218 | |
Euro Member Countries, Euro | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | 91 | |
U.S. | Foreign exchange forward contracts | ||
Derivative [Line Items] | ||
Derivative, notional amount | $ 706 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2020USD ($)site | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||
Non-cash impairment charge | $ 944 | ||
Number of intangible assets impaired | site | 2 | ||
Net carrying amount | $ 1,629 | $ 1,667 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Non-cash impairment charge | $ 43 | ||
Weighted average useful life | 45 years | ||
Net carrying amount | $ 39 | 33 | |
Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Net carrying amount | 1,102 | $ 1,109 | |
Insulation | Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Non-cash impairment charge | 34 | ||
Indefinite-lived intangible assets | $ 164 | ||
Insulation | Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Non-cash impairment charge | $ 9 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Goodwill Rollforward (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Line Items] | |
Balance at beginning of period | $ 989 |
Acquisitions (see Note 7) | 16 |
Additions | 3 |
Foreign Currency Translation | (13) |
Balance at end of period | 995 |
Composites | |
Goodwill [Line Items] | |
Balance at beginning of period | 57 |
Acquisitions (see Note 7) | 16 |
Additions | 3 |
Foreign Currency Translation | (1) |
Balance at end of period | 75 |
Insulation | |
Goodwill [Line Items] | |
Balance at beginning of period | 532 |
Acquisitions (see Note 7) | 0 |
Additions | 0 |
Foreign Currency Translation | (10) |
Balance at end of period | 522 |
Roofing | |
Goodwill [Line Items] | |
Balance at beginning of period | 400 |
Acquisitions (see Note 7) | 0 |
Additions | 0 |
Foreign Currency Translation | (2) |
Balance at end of period | $ 398 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Intangible Assets Rollforward (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 2,033 | $ 2,042 |
Accumulated amortization | (404) | (375) |
Net Carrying Amount | 1,629 | 1,667 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 1,102 | 1,109 |
Net Carrying Amount | 1,102 | 1,109 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 567 | 570 |
Accumulated amortization | (215) | (200) |
Net Carrying Amount | 352 | 370 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 321 | 327 |
Accumulated amortization | (185) | (172) |
Net Carrying Amount | 136 | 155 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | 43 | 36 |
Accumulated amortization | (4) | (3) |
Net Carrying Amount | $ 39 | $ 33 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization Expense (Details) $ in Millions | Sep. 30, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 45 |
2023 | 43 |
2024 | 39 |
2025 | 38 |
2026 | $ 38 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Line Items] | |||
Property plant and equipment, gross | $ 7,024 | $ 7,024 | $ 6,910 |
Accumulated depreciation | (3,257) | (3,257) | (3,101) |
Property, plant and equipment, net | $ 3,767 | $ 3,767 | $ 3,809 |
Precious metals depletion percentage | 10.00% | 10.00% | 10.00% |
Precious metal percent of deprecation expense | 0.03 | 0.03 | |
Increase to property, plant and equipment | $ 1 | $ 41 | |
Other Nonoperating Income (Expense) | |||
Property Plant And Equipment [Line Items] | |||
Increase to property, plant and equipment | 1 | 41 | |
Land | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment, gross | 222 | 222 | $ 222 |
Buildings and leasehold improvements | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment, gross | 1,255 | 1,255 | 1,241 |
Machinery and equipment | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment, gross | 5,277 | 5,277 | 5,155 |
Construction in progress | |||
Property Plant And Equipment [Line Items] | |||
Property plant and equipment, gross | $ 270 | $ 270 | $ 292 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Millions | Jul. 13, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 995 | $ 989 | |
vliepa GmbH | |||
Business Acquisition [Line Items] | |||
Business combination, consideration transferred | $ 42 | ||
Intangible assets acquired other than goodwill | 13 | ||
Goodwill | $ 16 |
WARRANTIES (Details)
WARRANTIES (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Movement In Standard And Extended Product Warranty Increase Decrease Roll Forward | ||
Product warranty accrual, beginning balance | $ 72 | $ 64 |
Amounts accrued for current year | 17 | 16 |
Settlements of warranty claims | (10) | (10) |
Product warranty accrual, ending balance | $ 79 | $ 70 |
RESTRUCTURING AND ACQUISITION_3
RESTRUCTURING AND ACQUISITION-RELATED COSTS RESTRUCTURING (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | $ (5) | $ 0 | $ (7) | $ (10) | |
Restructuring cost, expected cost | 1 | 1 | |||
Santa Clara Insulation Site | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (19) | ||||
Restructuring reserve | 12 | 12 | $ 0 | ||
Payments | 0 | ||||
Accelerated depreciation and other non-cash items | 7 | ||||
Cumulative charges incurred | 19 | 19 | |||
2020 Insulation Restructuring Actions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (3) | ||||
Restructuring reserve | 1 | 1 | 2 | ||
Payments | (2) | ||||
Accelerated depreciation and other non-cash items | 2 | ||||
Cumulative charges incurred | 26 | 26 | |||
2020 Composites Restructuring Actions | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0 | ||||
Restructuring reserve | 0 | 0 | 2 | ||
Payments | (2) | ||||
Accelerated depreciation and other non-cash items | 0 | ||||
Cumulative charges incurred | 13 | 13 | |||
Pittsburgh Corning Related Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 1 | ||||
Restructuring reserve | 6 | 6 | $ 9 | ||
Payments | (2) | ||||
Accelerated depreciation and other non-cash items | 0 | ||||
Cumulative charges incurred | 28 | 28 | |||
Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring reserve | 19 | 19 | |||
Restructuring reserve, noncurrent | 14 | 14 | |||
Restructuring reserve, current | 5 | 5 | |||
Severance | Santa Clara Insulation Site | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (12) | ||||
Severance | Cost Reductions Actions 2017 | Other (income) expenses, net | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (12) | 0 | (10) | (5) | |
Accelerated depreciation | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (3) | ||||
Accelerated depreciation | Santa Clara Insulation Site | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (5) | ||||
Accelerated depreciation | Cost Reductions Actions 2017 | Cost of sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (6) | 0 | (8) | (1) | |
Pension Charge | Santa Clara Insulation Site | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (2) | ||||
Other exit costs | Cost Reductions Actions 2017 | Cost of sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0 | 0 | 0 | (3) | |
Other exit costs | Cost Reductions Actions 2017 | Marketing and administrative expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 0 | 0 | (1) | 0 | |
Other exit costs | Cost Reductions Actions 2017 | Non-operating income | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | (2) | 0 | (2) | 0 | |
Other exit (gains)/costs | Cost Reductions Actions 2017 | Other (income) expenses, net | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring costs | 15 | $ 0 | $ 14 | $ (1) | |
Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 30 | ||||
Non cash charges | 75 | ||||
Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 40 | ||||
Non cash charges | $ 85 |
DEBT (Details)
DEBT (Details) - USD ($) | Aug. 12, 2019 | Jun. 27, 2017 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2016 | Dec. 31, 2014 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | May 12, 2020 | Apr. 01, 2018 | Jan. 25, 2018 | Dec. 31, 2017 | Jun. 26, 2017 | Aug. 08, 2016 | Nov. 12, 2014 | Oct. 17, 2012 |
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 2,982,000,000 | $ 2,982,000,000 | $ 3,145,000,000 | |||||||||||||||
Fair value long-term debt | 100.00% | 100.00% | 100.00% | |||||||||||||||
Other | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 | |||||||||||||||
Long-term debt, current maturities | 24,000,000 | 24,000,000 | 19,000,000 | |||||||||||||||
Long-term debt, net of current portion | 2,958,000,000 | 2,958,000,000 | 3,126,000,000 | |||||||||||||||
Loss on extinguishment of debt | 9,000,000 | $ 0 | 9,000,000 | $ 0 | ||||||||||||||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | |||||||||||||||||
Short-term debt (less than) | $ 2,000,000 | $ 2,000,000 | $ 1,000,000 | |||||||||||||||
Debt instrument, term | 1 year | |||||||||||||||||
Short-term debt, weighted average interest rate, at point in time | 1.40% | 1.40% | 1.10% | |||||||||||||||
Senior Notes Due 2022 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 0 | $ 0 | $ 184,000,000 | |||||||||||||||
Fair value long-term debt | 106.00% | |||||||||||||||||
Long-term debt, percentage rate | 4.20% | 4.20% | 4.20% | |||||||||||||||
Debt instrument, face amount | $ 600,000,000 | |||||||||||||||||
Repayments of debt | $ 416,000,000 | |||||||||||||||||
Senior Notes Due 2024 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 396,000,000 | $ 396,000,000 | $ 396,000,000 | |||||||||||||||
Fair value long-term debt | 109.00% | 109.00% | 111.00% | |||||||||||||||
Long-term debt, percentage rate | 4.20% | 4.20% | 4.20% | |||||||||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||||||||||||
Senior Notes Due 2026 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 397,000,000 | $ 397,000,000 | $ 397,000,000 | |||||||||||||||
Fair value long-term debt | 108.00% | 108.00% | 111.00% | |||||||||||||||
Long-term debt, percentage rate | 3.40% | 3.40% | 3.40% | |||||||||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||||||||||||
Senior Notes Due 2029 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 446,000,000 | $ 446,000,000 | $ 445,000,000 | |||||||||||||||
Fair value long-term debt | 112.00% | 112.00% | 115.00% | |||||||||||||||
Debt instrument, face amount | 450,000,000 | |||||||||||||||||
Senior Notes, Due 2030 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 297,000,000 | $ 297,000,000 | $ 297,000,000 | |||||||||||||||
Fair value long-term debt | 111.00% | 111.00% | 115.00% | |||||||||||||||
Debt instrument, face amount | $ 300,000,000 | |||||||||||||||||
Senior Notes Due 2036 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 368,000,000 | $ 368,000,000 | $ 368,000,000 | |||||||||||||||
Fair value long-term debt | 144.00% | 144.00% | 142.00% | |||||||||||||||
Long-term debt, percentage rate | 7.00% | 7.00% | 7.00% | |||||||||||||||
Debt instrument, face amount | $ 550,000,000 | |||||||||||||||||
Repayments of debt | $ 34,000,000 | $ 140,000,000 | ||||||||||||||||
Senior Notes Due 2047 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 589,000,000 | $ 589,000,000 | $ 588,000,000 | |||||||||||||||
Fair value long-term debt | 116.00% | 116.00% | 120.00% | |||||||||||||||
Long-term debt, percentage rate | 4.30% | 4.30% | ||||||||||||||||
Debt instrument, face amount | $ 600,000,000 | |||||||||||||||||
Senior Notes Due 2048 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 390,000,000 | $ 390,000,000 | $ 390,000,000 | |||||||||||||||
Fair value long-term debt | 118.00% | 118.00% | 121.00% | |||||||||||||||
Long-term debt, percentage rate | 4.40% | 4.40% | ||||||||||||||||
Debt instrument, face amount | $ 400,000,000 | |||||||||||||||||
Various finance leases, due through 2032 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt | $ 97,000,000 | $ 97,000,000 | $ 78,000,000 | |||||||||||||||
Fair value long-term debt | 100.00% | 100.00% | 100.00% | |||||||||||||||
Senior Notes Due 2019 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Repayments of debt | $ 144,000,000 | $ 105,000,000 | $ 100,000,000 | |||||||||||||||
Senior Notes Due 2016 | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Repayments of debt | $ 158,000,000 | $ 242,000,000 | $ 250,000,000 | |||||||||||||||
Senior Revolving Credit Facility B | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Proceeds from issuance of debt | $ 600,000,000 | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | 800,000,000 | $ 800,000,000 | ||||||||||||||||
Availability on facility | 796,000,000 | 796,000,000 | ||||||||||||||||
Letter Of Credit Under Receivables Purchase Agreement | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||
Long-term debt, current maturities | $ 280,000,000 | |||||||||||||||||
Line of credit facility, maximum borrowing capacity | 280,000,000 | 280,000,000 | ||||||||||||||||
Availability on facility | $ 279,000,000 | $ 279,000,000 |
DEBT - Credit Facility Utilizat
DEBT - Credit Facility Utilization (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Facility size or borrowing limit | $ 800 | |
Senior Revolving Credit Facility B | ||
Debt Instrument [Line Items] | ||
Facility size or borrowing limit | $ 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 or borrowing limit | 280 | |
Collateral capacity limitation on availability | 0 | |
Outstanding borrowings | 0 | |
Outstanding letters of credit | 1 | |
Availability on facility | $ 279 |
PENSION PLANS AND OTHER POSTR_3
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2021 | |
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||||
Contributions by employer | $ 3 | ||||
Pension Plan | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | $ 2 | $ 2 | 8 | $ 7 | |
Interest cost | 9 | 9 | 24 | 28 | |
Expected return on plan assets | (14) | (15) | (41) | (46) | |
Amortization of actuarial loss | 4 | 4 | 12 | 12 | |
Contractual termination benefit | 2 | 0 | 2 | 0 | |
Net periodic benefit income | 3 | 0 | 5 | 1 | |
Other Postretirement Benefits Plan | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | 0 | 0 | 1 | 1 | |
Interest cost | 1 | 1 | 3 | 4 | |
Amortization of prior service credit | 0 | 0 | (1) | (2) | |
Amortization of actuarial loss | (2) | (2) | (6) | (6) | |
Net periodic benefit income | (1) | (1) | (3) | (3) | |
U.S. | Pension Plan | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | 1 | 1 | 4 | 4 | |
Interest cost | 6 | 7 | 17 | 21 | |
Expected return on plan assets | (9) | (11) | (27) | (34) | |
Amortization of actuarial loss | 3 | 3 | 9 | 9 | |
Contractual termination benefit | 2 | 0 | 2 | 0 | |
Net periodic benefit income | 3 | 0 | 5 | 0 | |
Foreign Plan | Pension Plan | |||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||||
Service cost | 1 | 1 | 4 | 3 | |
Interest cost | 3 | 2 | 7 | 7 | |
Expected return on plan assets | (5) | (4) | (14) | (12) | |
Amortization of actuarial loss | 1 | 1 | 3 | 3 | |
Contractual termination benefit | 0 | 0 | 0 | 0 | |
Net periodic benefit income | $ 0 | $ 0 | $ 0 | $ 1 | |
Maximum | Scenario, Forecast | Foreign Plan | |||||
Defined Benefit Plan, Estimated Future Benefit Payments [Abstract] | |||||
Expected future employer contributions, current fiscal year | $ 25 |
CONTINGENT LIABILITIES AND OT_2
CONTINGENT LIABILITIES AND OTHER MATTERS (Details) $ in Millions | Sep. 30, 2021USD ($)site |
Unusual or Infrequent Item, or Both [Line Items] | |
Environmental liability sites | 22 |
Environmental exit costs, accrual | $ | $ 4 |
Environmental exit costs, accrual, current | $ | $ 1 |
Superfund Site | |
Unusual or Infrequent Item, or Both [Line Items] | |
Environmental liability sites | 9 |
Owned or Formally Owned Sites | |
Unusual or Infrequent Item, or Both [Line Items] | |
Environmental liability sites | 13 |
STOCK COMPENSATION - Narrative
STOCK COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Apr. 16, 2020 | Apr. 18, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share based compensation expense (less than) | $ 12 | $ 11 | ||||
Vesting period | 4 years | |||||
Maximum employee subscription rate | 85.00% | |||||
Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price range, exercisable options, weighted average exercise price | $ 25.45 | $ 25.45 | ||||
Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price range, exercisable options, weighted average exercise price | $ 42.16 | $ 42.16 | ||||
Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Options Maximum term (in years) | 10 years | |||||
Employee emergence equity program expense | $ 1 | $ 1 | $ 4 | $ 4 | ||
Options | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price range, exercisable options, weighted average exercise price | $ 37.65 | $ 37.65 | ||||
Options | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price range, exercisable options, weighted average exercise price | $ 42.16 | $ 42.16 | ||||
Restricted Stock Awards and Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Allocated share based compensation expense (less than) | $ 36 | 31 | ||||
Vesting period | 2 years 5 months 8 days | |||||
Compensation cost not yet recognized | $ 37 | $ 37 | ||||
Vested in period, fair value | $ 25 | $ 22 | ||||
Performance Stock Units (PSUs) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 1 year 10 months 2 days | |||||
Compensation cost not yet recognized | 21 | $ 21 | ||||
Vested in period, fair value | 1 | |||||
Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Compensation cost not yet recognized | $ 1 | $ 1 | ||||
Stock Plan Member, 2016 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant | 3.1 | 3.1 | ||||
Internal Based Performance Metric | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance stock payout minimum | 0 | |||||
Performance stock payout range maximum | 3 | |||||
External Based Performance Metric | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 3 years | |||||
Performance stock payout minimum | 0 | |||||
Performance stock payout range maximum | 2 | |||||
Employee Stock Purchase Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant | 4 | 4 | 4.2 | |||
Performance Stock Units (PSUs) 2018 | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 42.74% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.18% | |||||
Expected term (in years) | 2 years 6 months 21 days | |||||
Grant date fair value of units granted | $ 99.19 | |||||
Performance Stock Units (PSUs) 2018 | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 43.67% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.24% | |||||
Expected term (in years) | 2 years 10 months 24 days | |||||
Grant date fair value of units granted | $ 127.37 |
STOCK COMPENSATION - Stock Opti
STOCK COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Number of options, beginning balance | 361,775 | ||
Exercised (in shares) | (215,875) | ||
Number of options, ending balance | 145,900 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning Balance | $ 37.77 | ||
Exercised, weighted average exercise price | 37.42 | ||
Ending Balance | $ 38.30 | ||
Weighted average remaining contractual term (in years) | 1 year 1 month 2 days | 1 year 6 months | |
Exercise price range, exercisable options, weighted average remaining contractual term (in years) | 1 year 1 month 2 days | ||
Intrinsic value | $ 7 | $ 14 | |
Intrinsic value, exercisable | $ 7 |
STOCK COMPENSATION - Restricted
STOCK COMPENSATION - Restricted Stock Activity (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Balance at December 31, 2020 | shares | 1,419,454 |
Granted (in shares) | shares | 352,126 |
Vested (in shares) | shares | (449,207) |
Forfeited (in shares) | shares | (46,074) |
Balance at September 30, 2021 | shares | 1,276,299 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Balance at December 31, 2020 | $ / shares | $ 54.99 |
Granted, weighted average grant date fair value | $ / shares | 83.72 |
Vested, weighted average grant date fair value | $ / shares | 56.51 |
Forfeited, weighted average grant date fair value | $ / shares | 66.15 |
Balance at September 30, 2021 | $ / shares | $ 61.83 |
STOCK COMPENSATION - Performanc
STOCK COMPENSATION - Performance Stock Units (Details) - Performance Stock Units (PSUs) | 9 Months Ended |
Sep. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Balance at December 31, 2020 | shares | 323,361 |
Granted (in shares) | shares | 153,858 |
Forfeited (in shares) | shares | (23,130) |
Balance at September 30, 2021 | shares | 454,089 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Balance at December 31, 2020 | $ / shares | $ 61.78 |
Granted, weighted average grant date fair value | $ / shares | 85.81 |
Forfeited, weighted average grant date fair value | $ / shares | 65.59 |
Balance at September 30, 2021 | $ / shares | $ 69.63 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 03, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||||||||
Net earnings (loss) attributable to Owens Corning | $ 260 | $ 298 | $ 210 | $ 206 | $ 96 | $ (917) | $ 768 | $ (615) | |
Weighted-average number of shares outstanding used for basic earnings (loss) per share | 103,100,000 | 108,800,000 | 104,400,000 | 108,700,000 | |||||
Non-vested restricted and performance shares | 700,000 | 600,000 | 700,000 | 0 | |||||
Options to purchase common stock | 100,000 | 100,000 | 100,000 | 0 | |||||
Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings (loss) per share | 103,900,000 | 109,500,000 | 105,200,000 | 108,700,000 | |||||
Basic (in dollars per share) | $ 2.52 | $ 1.89 | $ 7.36 | $ (5.66) | |||||
Diluted (in dollars per share) | $ 2.50 | $ 1.88 | $ 7.30 | $ (5.66) | |||||
Equity Class Of Treasury Stock [Line Items] | |||||||||
Stock repurchase program, number of shares authorized to be repurchased | 4,900,000 | 4,900,000 | |||||||
Repurchase Program 2020 | |||||||||
Equity Class Of Treasury Stock [Line Items] | |||||||||
Stock repurchase program, number of shares authorized to be repurchased | 10,000,000 | ||||||||
Stock repurchased during period, shares | 4,600,000 | ||||||||
Payments for repurchase of equity | $ 422 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Income tax expense | $ 94 | $ 56 | $ 250 | $ 119 | |
Effective tax rate | 27.00% | 21.00% | 25.00% | (24.00%) | |
Non-cash charges related to adjustments to valuation allowances | $ 15 | ||||
Income tax benefit, GILTI | $ (13) |
CHANGES IN ACCUMULATED OTHER _3
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Total AOCI beginning balance | $ (588) | |||
Amounts classified into AOCI, net of tax (b) | $ 10 | $ 0 | 10 | $ 0 |
Amounts classified into AOCI, net of tax | 12 | 3 | 22 | 2 |
Total AOCI ending balance | (583) | (638) | (583) | (638) |
Currency Translation Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Total AOCI beginning balance | (233) | (351) | (220) | (282) |
Net investment hedge amounts classified into AOCI, net of tax | 4 | (9) | 7 | 20 |
Gain/(loss) on foreign currency translation | (39) | 46 | (55) | (52) |
Other comprehensive income/(loss), net of tax | (35) | 37 | (48) | (32) |
Total AOCI ending balance | (268) | (314) | (268) | (314) |
Pension and Other Postretirement Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Total AOCI beginning balance | (374) | (321) | (372) | (326) |
Other comprehensive income/(loss), net of tax | 33 | (3) | 31 | 2 |
Amounts reclassified from AOCI to net earnings, net of tax | 2 | (3) | 4 | 4 |
Amounts classified into AOCI, net of tax (b) | 31 | 0 | 27 | (2) |
Total AOCI ending balance | (341) | (324) | (341) | (324) |
Hedging Adjustment | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Total AOCI beginning balance | 14 | (3) | 4 | (2) |
Other comprehensive income/(loss), net of tax | 12 | 3 | 22 | 2 |
Amounts reclassified from AOCI to net earnings, net of tax | (3) | 2 | (5) | (2) |
Amounts classified into AOCI, net of tax | 15 | 1 | 27 | 4 |
Total AOCI ending balance | $ 26 | $ 0 | $ 26 | $ 0 |