OWENS
CORNING
Owens Corning National Settlement
Program Update
December 1998
1998 OC Backlog Analysis
NSP Settlements 176,000
Routine Docket 18,000
Unsettled Cases 5,000
Previously Settled Cases 11,000
Total Cases Filed and In Process 210,000
Backlog Settlement Summary
Total Cases Settled 176,000
Total Value of OC Settlement Payments: $ 1.200 Billion
OC Settlement Average Payment Per Case $ 7,200
Three-Year Historical OC Average Per Case $ 13,800
* Total Value of Fibreboard Settlement Payments $ 0.900 Billion
* Fibreboard Settlement Average Payment Per Case $ 5,500
Three-Year Historical Fibreboard Average Per Case $ 11,500
* Contingent on Supreme Court striking down Fibreboard Global Settlement
OC Asbestos Cash Outflow
(In millions of dollars)
Average
1991-1994 1995 1996 1997 1998 (a)
Total Payments $ 301 $ 308 $267 $ 300 $363
Insurance Proceeds $ 252 251 101 97 45
Owens Corning Pretax
Cash Outflow 49 57 166 203 318
(a) Defense costs $ 63
Verdicts Paid 117
Routine Settlements 183
Total 1998 Payments $ 363
OC Financing
Source of Funds
- - Remaining availability under
$1.8 Billion line of credit $1.300 Billion
- - Financing Alternatives Under Consideration
- Additional Long-Term Debt
- Convertible Preferred Security
- Sale or Joint Venture of Non-Strategic
Assets or Businesses
OC Asbestos Liability
Payments # of Cases $ Billions
Settlement of existing backlog 176,000 ($.9-$1.2)
Existing settlements and verdicts 11,000 ($.3)
Defense and administrative processing
costs - ($.2)
Future claims processing under NSP
and payments to non-NSP
participants ($1.1-$1.3)
Total Liability (Range of $2.5 to $3.0) ($2.7)
Existing Reserve ($1.3)
Net Reserve Addition ($1.4)
Tax Benefit @ 37% $ .5
Effect on 1998 Net Income ($ .9)