Delaware | 43-2109021 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
One Owens Corning Parkway, Toledo, OH | 43659 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer þ | Accelerated filer ¨ |
Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company ¨ |
Contents | |||
Item 1. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Item 5. | |||
Item 6. | |||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
NET SALES | $ | 1,545 | $ | 1,403 | $ | 2,776 | $ | 2,606 | ||||
COST OF SALES | 1,129 | 1,095 | 2,088 | 2,089 | ||||||||
Gross margin | 416 | 308 | 688 | 517 | ||||||||
OPERATING EXPENSES | ||||||||||||
Marketing and administrative expenses | 151 | 130 | 285 | 259 | ||||||||
Science and technology expenses | 21 | 18 | 40 | 35 | ||||||||
Other expenses, net | 4 | 4 | 7 | 9 | ||||||||
Total operating expenses | 176 | 152 | 332 | 303 | ||||||||
EARNINGS BEFORE INTEREST AND TAXES | 240 | 156 | 356 | 214 | ||||||||
Interest expense, net | 29 | 26 | 52 | 52 | ||||||||
Gain on extinguishment of debt | — | (5 | ) | — | (5 | ) | ||||||
EARNINGS BEFORE TAXES | 211 | 135 | 304 | 167 | ||||||||
Income tax expense | 73 | 44 | 107 | 57 | ||||||||
Equity in net earnings of affiliates | 1 | 1 | 1 | 1 | ||||||||
NET EARNINGS | 139 | 92 | 198 | 111 | ||||||||
Net earnings attributable to noncontrolling interests | 1 | 1 | 3 | 2 | ||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 138 | $ | 91 | $ | 195 | $ | 109 | ||||
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS | ||||||||||||
Basic | $ | 1.20 | $ | 0.77 | $ | 1.69 | $ | 0.93 | ||||
Diluted | $ | 1.19 | $ | 0.77 | $ | 1.67 | $ | 0.92 | ||||
Dividend | $ | 0.18 | $ | 0.17 | $ | 0.36 | $ | 0.34 | ||||
WEIGHTED AVERAGE COMMON SHARES | ||||||||||||
Basic | 115.1 | 117.5 | 115.3 | 117.6 | ||||||||
Diluted | 116.4 | 118.3 | 116.5 | 118.3 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
NET EARNINGS | $ | 139 | $ | 92 | $ | 198 | $ | 111 | ||||
Currency translation adjustment (net of tax of $(4) and $3 for the three months ended June 30, 2016 and 2015, respectively, and $1 and $(2) for the six months ended June 30, 2016 and 2015, respectively) | (13 | ) | 7 | 21 | (43 | ) | ||||||
Pension and other postretirement adjustment (net of tax of $1 and $(1) for the three months ended June 30, 2016 and 2015, respectively, and $3 and $(3) for the six months ended June 30, 2016 and 2015, respectively) | — | (2 | ) | 10 | 6 | |||||||
Deferred gain on hedging (net of tax of $(2) and $(1) for the three months ended June 30, 2016 and 2015, respectively, and $(2) and $(2) for the six months ended June 30, 2016 and 2015, respectively) | 3 | 2 | 4 | 3 | ||||||||
COMPREHENSIVE EARNINGS | 129 | 99 | 233 | 77 | ||||||||
Comprehensive earnings attributable to noncontrolling interests | 1 | 1 | 3 | 2 | ||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 128 | $ | 98 | $ | 230 | $ | 75 |
ASSETS | June 30, 2016 | December 31, 2015 | ||||
CURRENT ASSETS | ||||||
Cash and cash equivalents | $ | 67 | $ | 96 | ||
Receivables, less allowances of $10 at June 30, 2016 and $8 at December 31, 2015 | 879 | 709 | ||||
Inventories | 753 | 644 | ||||
Assets held for sale | 13 | 12 | ||||
Other current assets | 63 | 47 | ||||
Total current assets | 1,775 | 1,508 | ||||
Property, plant and equipment, net | 3,059 | 2,956 | ||||
Goodwill | 1,344 | 1,167 | ||||
Intangible assets, net | 1,152 | 999 | ||||
Deferred income taxes | 411 | 492 | ||||
Other non-current assets | 236 | 222 | ||||
TOTAL ASSETS | $ | 7,977 | $ | 7,344 | ||
LIABILITIES AND EQUITY | ||||||
CURRENT LIABILITIES | ||||||
Accounts payable and accrued liabilities | $ | 979 | $ | 912 | ||
Short-term debt | — | 6 | ||||
Long-term debt – current portion | 177 | 163 | ||||
Total current liabilities | 1,156 | 1,081 | ||||
Long-term debt, net of current portion | 2,099 | 1,702 | ||||
Pension plan liability | 375 | 397 | ||||
Other employee benefits liability | 238 | 240 | ||||
Deferred income taxes | 32 | 8 | ||||
Other liabilities | 172 | 137 | ||||
OWENS CORNING STOCKHOLDERS’ EQUITY | ||||||
Preferred stock, par value $0.01 per share (a) | — | — | ||||
Common stock, par value $0.01 per share (b) | 1 | 1 | ||||
Additional paid in capital | 3,965 | 3,965 | ||||
Accumulated earnings | 1,208 | 1,055 | ||||
Accumulated other comprehensive deficit | (635 | ) | (670 | ) | ||
Cost of common stock in treasury (c) | (675 | ) | (612 | ) | ||
Total Owens Corning stockholders’ equity | 3,864 | 3,739 | ||||
Noncontrolling interests | 41 | 40 | ||||
Total equity | 3,905 | 3,779 | ||||
TOTAL LIABILITIES AND EQUITY | $ | 7,977 | $ | 7,344 |
(a) | 10 shares authorized; none issued or outstanding at June 30, 2016 and December 31, 2015 |
(b) | 400 shares authorized; 135.5 issued and 114.9 outstanding at June 30, 2016; 135.5 issued and 115.9 outstanding at December 31, 2015 |
(c) | 20.4 shares at June 30, 2016, and 19.6 shares at December 31, 2015 |
Six Months Ended June 30, | ||||||
2016 | 2015 | |||||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ||||||
Net earnings | $ | 198 | $ | 111 | ||
Adjustments to reconcile net earnings to cash provided by (used for) operating activities: | ||||||
Depreciation and amortization | 158 | 151 | ||||
Gain on sale of fixed assets | — | (1 | ) | |||
Deferred income taxes | 83 | 37 | ||||
Provision for pension and other employee benefits liabilities | 3 | 7 | ||||
Stock-based compensation expense | 17 | 14 | ||||
Other non-cash | (5 | ) | (11 | ) | ||
Gain on extinguishment of debt | — | (5 | ) | |||
Changes in operating assets and liabilities | (117 | ) | (175 | ) | ||
Pension fund contribution | (9 | ) | (25 | ) | ||
Payments for other employee benefits liabilities | (9 | ) | (10 | ) | ||
Other | 7 | 13 | ||||
Net cash flow provided by operating activities | 326 | 106 | ||||
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||||||
Cash paid for property, plant and equipment | (187 | ) | (177 | ) | ||
Proceeds from the sale of assets or affiliates | — | 2 | ||||
Investment in subsidiaries and affiliates, net of cash acquired | (450 | ) | — | |||
Purchases of alloy | — | (7 | ) | |||
Proceeds from sale of alloy | — | 7 | ||||
Other | 2 | — | ||||
Net cash flow used for investing activities | (635 | ) | (175 | ) | ||
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||||||
Proceeds from senior revolving credit and receivables securitization facilities | 434 | 819 | ||||
Proceeds from term loan borrowing | 300 | — | ||||
Payments on senior revolving credit and receivables securitization facilities | (326 | ) | (634 | ) | ||
Payments on long-term debt | — | (8 | ) | |||
Net decrease in short-term debt | (6 | ) | (19 | ) | ||
Cash dividends paid | (40 | ) | (39 | ) | ||
Purchases of treasury stock | (87 | ) | (47 | ) | ||
Other | 4 | 11 | ||||
Net cash flow provided by financing activities | 279 | 83 | ||||
Effect of exchange rate changes on cash | 1 | (1 | ) | |||
Net (decrease) increase in cash and cash equivalents | (29 | ) | 13 | |||
Cash and cash equivalents at beginning of period | 96 | 67 | ||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 67 | $ | 80 |
1. | GENERAL |
2. | SEGMENT INFORMATION |
2. | SEGMENT INFORMATION (continued) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Reportable Segments | ||||||||||||
Composites | $ | 517 | 497 | $ | 990 | $ | 971 | |||||
Insulation | 414 | 451 | 799 | 830 | ||||||||
Roofing | 679 | 503 | 1,108 | 896 | ||||||||
Total reportable segments | 1,610 | 1,451 | 2,897 | 2,697 | ||||||||
Corporate eliminations | (65 | ) | (48 | ) | (121 | ) | (91 | ) | ||||
NET SALES | $ | 1,545 | $ | 1,403 | $ | 2,776 | $ | 2,606 |
External Customer Sales by Geographic Region | ||||||||||||
United States | $ | 1,097 | $ | 974 | $ | 1,942 | $ | 1,790 | ||||
Europe | 152 | 136 | 286 | 265 | ||||||||
Asia Pacific | 174 | 174 | 319 | 314 | ||||||||
Other | 122 | 119 | 229 | 237 | ||||||||
NET SALES | $ | 1,545 | $ | 1,403 | $ | 2,776 | $ | 2,606 |
2. | SEGMENT INFORMATION (continued) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Reportable Segments | ||||||||||||
Composites | $ | 74 | 67 | $ | 138 | $ | 127 | |||||
Insulation | 32 | 25 | 45 | 32 | ||||||||
Roofing | 169 | 90 | 242 | 110 | ||||||||
Total reportable segments | 275 | 182 | 425 | 269 | ||||||||
Restructuring costs | (2 | ) | — | (2 | ) | (2 | ) | |||||
Acquisition-related costs for InterWrap and Ahlstrom transactions | (3 | ) | — | (5 | ) | — | ||||||
Recognition of InterWrap inventory fair value step-up | (8 | ) | — | (8 | ) | |||||||
General corporate expense and other | (22 | ) | (26 | ) | (54 | ) | (53 | ) | ||||
EBIT | $ | 240 | $ | 156 | $ | 356 | $ | 214 |
3. | INVENTORIES |
June 30, 2016 | December 31, 2015 | |||||
Finished goods | $ | 525 | $ | 436 | ||
Materials and supplies | 228 | 208 | ||||
Total inventories | $ | 753 | $ | 644 |
4. | DERIVATIVE FINANCIAL INSTRUMENTS |
Fair Value at | |||||||||
Location | June 30, 2016 | December 31, 2015 | |||||||
Derivative assets designated as hedging instruments: | |||||||||
Net investment hedges | |||||||||
Cross currency swaps | Other current assets | $ | 4 | $ | 4 | ||||
Cross currency swaps | Other non-current assets | $ | 2 | $ | 6 | ||||
Amount of gain recognized in OCI (effective portion) | OCI | $ | 11 | $ | 14 | ||||
Fair value hedges | |||||||||
Interest rate swaps | Other non-current assets | $ | — | $ | 4 | ||||
Cash flow hedges: | |||||||||
Natural gas forward swaps | Other current assets | $ | 3 | $ | — | ||||
Amount of gain recognized in OCI (effective portion) | OCI | $ | 2 | $ | — | ||||
Derivative liabilities designated as hedging instruments: | |||||||||
Cash flow hedges: | |||||||||
Natural gas forward swaps | Accounts payable and accrued liabilities | $ | — | $ | 5 | ||||
Amount of loss recognized in OCI related to natural gas forward swaps (effective portion) | OCI | $ | — | $ | 5 | ||||
Amount of loss recognized in OCI related to foreign exchange contracts (effective portion) | OCI | $ | — | $ | 1 | ||||
Treasury interest rate lock | Accounts payable and accrued liabilities | $ | 2 | $ | — | ||||
Amount of loss recognized in OCI related to treasury interest rate lock | OCI | $ | 2 | $ | — | ||||
Derivative assets not designated as hedging instruments: | |||||||||
Foreign exchange contracts | Other current assets | $ | 1 | $ | — | ||||
Derivative liabilities not designated as hedging instruments: | |||||||||
Natural gas forward swaps | Accounts payable and accrued liabilities | $ | — | $ | 1 | ||||
Foreign exchange contracts | Accounts payable and accrued liabilities | $ | 3 | $ | — |
Notional Amount | |||||
Unit of Measure | June 30, 2016 | ||||
Net investment hedges | |||||
Cross currency swaps | U.S. Dollars | $ | 250 | ||
Cash flow hedges: | |||||
Natural gas forward swaps U.S. indices | MMBtu | 7 | |||
Natural gas forward swaps European indices | MMBtu (equivalent) | 1 | |||
Treasury interest rate lock | U.S. Dollars | $ | 200 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
Location | 2016 | 2015 | 2016 | 2015 | |||||||||
Derivative activity designated as hedging instruments: | |||||||||||||
Natural gas and electricity: | |||||||||||||
Amount of loss reclassified from OCI into earnings (effective portion) | Cost of sales | $ | 3 | $ | 3 | $ | 6 | $ | 6 | ||||
Foreign Currency | |||||||||||||
Amount of loss reclassified from OCI into earnings (effective portion) | Other expenses, net | $ | — | $ | — | $ | 1 | $ | — | ||||
Interest rate swaps: | |||||||||||||
Amount of loss recognized in earnings | Interest expense, net | $ | — | $ | — | $ | 1 | $ | — | ||||
Derivative activity not designated as hedging instruments: | |||||||||||||
Natural gas and electricity: | |||||||||||||
Amount of (gain) recognized in earnings | Other expenses, net | $ | — | $ | — | $ | (1 | ) | $ | (1 | ) | ||
Foreign currency exchange contract: | |||||||||||||
Amount of (gain)/loss recognized in earnings (a) | Other expenses, net | $ | 3 | $ | (1 | ) | $ | 6 | $ | — |
(a) | Losses related to foreign currency derivatives were substantially offset by net revaluation impacts on foreign denominated balance sheet exposures, which were also recorded in Other expenses, net. |
June 30, 2016 | Weighted Average Useful Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||
Amortizable intangible assets: | |||||||||||
Customer relationships | 21 | $ | 253 | $ | (88 | ) | $ | 165 | |||
Technology | 19 | 216 | (97 | ) | 119 | ||||||
Franchise and other agreements | 9 | 45 | (22 | ) | 23 | ||||||
Indefinite-lived intangible assets: | |||||||||||
Trademarks | 845 | — | 845 | ||||||||
Total intangible assets | $ | 1,359 | $ | (207 | ) | $ | 1,152 | ||||
Goodwill | $ | 1,344 |
December 31, 2015 | Weighted Average Useful Life | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||
Amortizable intangible assets: | |||||||||||
Customer relationships | 18 | $ | 172 | $ | (82 | ) | $ | 90 | |||
Technology | 21 | 193 | (93 | ) | 100 | ||||||
Franchise and other agreements | 10 | 43 | (20 | ) | 23 | ||||||
Indefinite-lived intangible assets: | |||||||||||
Trademarks | 786 | — | 786 | ||||||||
Total intangible assets | $ | 1,194 | $ | (195 | ) | $ | 999 | ||||
Goodwill | $ | 1,167 |
Customer relationships | Technology | Franchise and other agreements | Trademarks | Total | |||||||||||||||
Balance at December 31, 2015 | $ | 172 | $ | 193 | $ | 43 | $ | 786 | $ | 1,194 | |||||||||
Acquisitions (see Note 7) | 81 | 23 | — | 59 | 163 | ||||||||||||||
Additional Franchises and Agreements | — | — | 2 | — | 2 | ||||||||||||||
Balance at June 30, 2016 | $ | 253 | $ | 216 | $ | 45 | $ | 845 | $ | 1,359 |
Composites | Insulation | Roofing | Total | ||||||||||||
Balance at December 31, 2015 | $ | 56 | $ | 888 | $ | 223 | $ | 1,167 | |||||||
Acquisitions (see Note 7) | — | — | 178 | 178 | |||||||||||
Foreign currency translation | (1 | ) | — | — | (1 | ) | |||||||||
Balance at June 30, 2016 | $ | 55 | $ | 888 | $ | 401 | $ | 1,344 |
6. | PROPERTY, PLANT AND EQUIPMENT |
June 30, 2016 | December 31, 2015 | |||||
Land | $ | 192 | $ | 186 | ||
Buildings and leasehold improvements | 863 | 788 | ||||
Machinery and equipment | 3,731 | 3,478 | ||||
Construction in progress | 249 | 359 | ||||
5,035 | 4,811 | |||||
Accumulated depreciation | (1,976 | ) | (1,855 | ) | ||
Property, plant and equipment, net | $ | 3,059 | $ | 2,956 |
Six Months Ended June 30, 2016 | |||
Beginning balance | $ | 43 | |
Amounts accrued for current year | 11 | ||
Settlements of warranty claims | (6 | ) | |
Ending balance | $ | 48 |
Location | Ahlstrom Acquisition | InterWrap Acquisition | Total | ||||||
Cost of sales | $ | — | $ | 1 | $ | 1 | |||
Marketing and administrative expenses | 1 | 3 | 4 | ||||||
Total acquisition-related costs | $ | 1 | $ | 4 | $ | 5 |
2014 Cost Reduction Actions | |||
Balance at December 31, 2015 | $ | 7 | |
Restructuring costs | 2 | ||
Payments | (2 | ) | |
Non-cash items and reclassifications to other accounts | (2 | ) | |
Balance at June 30, 2016 | $ | 5 |
10. | DEBT |
June 30, 2016 | December 31, 2015 | |||||
6.50% senior notes, net of discount and financing fees, due 2016 | $ | 158 | $ | 158 | ||
9.00% senior notes, net of discount and financing fees, due 2019 | 143 | 143 | ||||
4.20% senior notes, net of discount and financing fees, due 2022 | 596 | 596 | ||||
4.20% senior notes, net of discount and financing fees, due 2024 | 391 | 390 | ||||
7.00% senior notes, net of discount and financing fees, due 2036 | 536 | 536 | ||||
Term loan borrowing, due 2020 | 300 | — | ||||
Accounts receivable securitization facility, maturing in 2018 | 108 | — | ||||
Various capital leases, due through and beyond 2050 | 35 | 36 | ||||
Fair value adjustment to debt | 9 | 6 | ||||
Total long-term debt | 2,276 | 1,865 | ||||
Less – current portion | 177 | 163 | ||||
Long-term debt, net of current portion | $ | 2,099 | $ | 1,702 |
10. | DEBT (continued) |
10. | DEBT (continued) |
11. | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS |
Three Months Ended June 30, 2016 | Three Months Ended June 30, 2015 | |||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||
Components of Net Periodic Pension Cost | ||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 2 | $ | 2 | $ | 1 | $ | 3 | ||||||
Interest cost | 11 | 5 | 16 | 11 | 5 | 16 | ||||||||||||
Expected return on plan assets | (15 | ) | (6 | ) | (21 | ) | (14 | ) | (7 | ) | (21 | ) | ||||||
Amortization of actuarial loss | 4 | 1 | 5 | 3 | 1 | 4 | ||||||||||||
Curtailment gain | — | (6 | ) | (6 | ) | — | (1 | ) | (1 | ) | ||||||||
Contractual termination benefit | — | 2 | 2 | — | — | — | ||||||||||||
Net periodic pension cost | $ | 1 | $ | (3 | ) | $ | (2 | ) | $ | 2 | $ | (1 | ) | $ | 1 |
11. | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS (continued) |
Six Months Ended June 30, 2016 | Six Months Ended June 30, 2015 | |||||||||||||||||
U.S. | Non-U.S. | Total | U.S. | Non-U.S. | Total | |||||||||||||
Components of Net Periodic Pension Cost | ||||||||||||||||||
Service cost | $ | 3 | $ | 2 | $ | 5 | $ | 4 | $ | 2 | $ | 6 | ||||||
Interest cost | 22 | 9 | 31 | 22 | 10 | 32 | ||||||||||||
Expected return on plan assets | (29 | ) | (12 | ) | (41 | ) | (29 | ) | (13 | ) | (42 | ) | ||||||
Amortization of actuarial loss | 7 | 2 | 9 | 7 | 2 | 9 | ||||||||||||
Curtailment gain | — | (6 | ) | (6 | ) | — | (1 | ) | (1 | ) | ||||||||
Contractual termination benefit | — | 2 | 2 | — | — | — | ||||||||||||
Net periodic pension cost | $ | 3 | $ | (3 | ) | $ | — | $ | 4 | $ | — | $ | 4 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Components of Net Periodic Benefit Cost | ||||||||||||
Service cost | $ | — | $ | — | $ | 1 | $ | 1 | ||||
Interest cost | 2 | 2 | 4 | 4 | ||||||||
Amortization of prior service cost | (1 | ) | (1 | ) | (2 | ) | (2 | ) | ||||
Net periodic benefit cost | $ | 1 | $ | 1 | $ | 3 | $ | 3 |
12. | CONTINGENT LIABILITIES AND OTHER MATTERS |
12. | CONTINGENT LIABILITIES AND OTHER MATTERS (continued) |
13. | STOCK COMPENSATION |
13. | STOCK COMPENSATION (continued) |
Six Months Ended June 30, 2016 | |||||
Number of Options | Weighted- Average Exercise Price | ||||
Beginning Balance | 1,953,320 | $ | 31.09 | ||
Exercised | (252,145 | ) | 30.63 | ||
Forfeited | (11,350 | ) | 38.50 | ||
Ending Balance | 1,689,825 | $ | 31.11 |
Options Outstanding | Options Exercisable | |||||||||||
Options Outstanding | Weighted-Average | Number Exercisable at June 30, 2016 | Weighted-Average | |||||||||
Range of Exercise Prices | Remaining Contractual Life | Exercise Price | Remaining Contractual Life | Exercise Price | ||||||||
$13.89-$42.16 | 1,689,825 | 4.24 | $ | 31.11 | 1,488,850 | 3.83 | $ | 30.05 |
13. | STOCK COMPENSATION (continued) |
Six Months Ended June 30, 2016 | |||||
Number of Shares/Units | Weighted-Average Grant-Date Fair Value | ||||
Beginning Balance | 1,707,490 | $ | 35.37 | ||
Granted | 513,243 | 45.32 | |||
Vested | (378,613 | ) | 37.55 | ||
Forfeited | (26,800 | ) | 38.61 | ||
Ending Balance | 1,815,320 | $ | 37.64 |
13. | STOCK COMPENSATION (continued) |
Six Months Ended June 30, 2016 | |||||
Number of PSUs | Weighted-Average Grant-Date Fair Value | ||||
Beginning Balance | 431,400 | $ | 44.52 | ||
Granted | 244,250 | 48.74 | |||
Forfeited | (11,300 | ) | 44.50 | ||
Ending Balance | 664,350 | $ | 46.07 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Net earnings attributable to Owens Corning | $ | 138 | $ | 91 | $ | 195 | $ | 109 | ||||
Weighted-average number of shares outstanding used for basic earnings per share | 115.1 | 117.5 | 115.3 | 117.6 | ||||||||
Non-vested restricted and performance shares | 0.8 | 0.4 | 0.8 | 0.3 | ||||||||
Options to purchase common stock | 0.5 | 0.4 | 0.4 | 0.4 | ||||||||
Weighted-average number of shares outstanding and common equivalent shares used for diluted earnings per share | 116.4 | 118.3 | 116.5 | 118.3 | ||||||||
Earnings per common share attributable to Owens Corning common stockholders: | ||||||||||||
Basic | $ | 1.20 | $ | 0.77 | $ | 1.69 | $ | 0.93 | ||||
Diluted | $ | 1.19 | $ | 0.77 | $ | 1.67 | $ | 0.92 |
Total Measured at Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Derivative assets | $ | 10 | $ | — | $ | 10 | $ | — | ||||
Liabilities: | ||||||||||||
Derivative liabilities | $ | 5 | $ | — | $ | 5 | $ | — |
Total Measured at Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||
Assets: | ||||||||||||
Derivative assets | $ | 14 | $ | — | $ | 14 | $ | — | ||||
Liabilities: | ||||||||||||
Derivative liabilities | $ | 6 | $ | — | $ | 6 | $ | — |
June 30, 2016 | December 31, 2015 | |||
6.50% senior notes, net of discount, due 2016 | 102 | % | 103 | % |
9.00% senior notes, net of discount, due 2019 | 117 | % | 116 | % |
4.20% senior notes, net of discount, due 2022 | 104 | % | 99 | % |
4.20% senior notes, net of discount, due 2024 | 105 | % | 100 | % |
7.00% senior notes, net of discount, due 2036 | 120 | % | 105 | % |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Income tax expense | $ | 73 | $ | 44 | $ | 107 | $ | 57 | ||||
Effective tax rate | 35 | % | 33 | % | 35 | % | 34 | % |
17. | CHANGES IN ACCUMULATED OTHER COMPREHENSIVE DEFICIT |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Currency Translation Adjustment | ||||||||||||
Beginning balance | $ | (213 | ) | $ | (183 | ) | $ | (247 | ) | $ | (133 | ) |
Net investment hedge amounts classified into AOCI, net of tax | 5 | (4 | ) | (2 | ) | 3 | ||||||
Foreign currency translation amounts classified into AOCI | (18 | ) | 11 | 23 | (46 | ) | ||||||
Other comprehensive income/(loss), net of tax | (13 | ) | 7 | 21 | (43 | ) | ||||||
Ending balance | $ | (226 | ) | $ | (176 | ) | $ | (226 | ) | $ | (176 | ) |
Pension and Other Postretirement Adjustment | ||||||||||||
Beginning balance | $ | (409 | ) | $ | (404 | ) | $ | (419 | ) | $ | (412 | ) |
Amounts reclassified from AOCI to net earnings, net of tax (a) | (2 | ) | 2 | — | 4 | |||||||
Amounts classified into AOCI, net of tax | 2 | (4 | ) | 10 | 2 | |||||||
Other comprehensive income, net of tax | — | (2 | ) | 10 | 6 | |||||||
Ending balance | $ | (409 | ) | $ | (406 | ) | $ | (409 | ) | $ | (406 | ) |
Deferred Gain (Loss) on Hedging | ||||||||||||
Beginning balance | $ | (3 | ) | $ | (4 | ) | $ | (4 | ) | $ | (5 | ) |
Amounts reclassified from AOCI to net earnings, net of tax (b) | 1 | 2 | 4 | 4 | ||||||||
Amounts classified into AOCI, net of tax | 2 | — | — | (1 | ) | |||||||
Other comprehensive income, net of tax | 3 | 2 | 4 | 3 | ||||||||
Ending balance | $ | — | $ | (2 | ) | $ | — | $ | (2 | ) | ||
Total AOCI ending balance | $ | (635 | ) | $ | (584 | ) | $ | (635 | ) | $ | (584 | ) |
18. | ACCOUNTING PRONOUNCEMENTS |
Standard | Description | Effective Date for Company | Effect on the Consolidated Financial Statements |
Recently issued standards: | |||
ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)," as amended by ASU's 2015-14, 2016-08, 2016-10, 2016-11 and 2016-12 | This standard outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. Entities can adopt this standard either through a retrospective or modified-retrospective approach. | January 1, 2018 | We are currently assessing the impact this standard will have on our Consolidated Financial Statements. |
ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10)" | This standard modifies certain aspects of the recognition, measurement, presentation and disclosure of financial instruments. The update simplifies the impairment assessment of equity investments, requires that disclosure of financial instruments be based on an exit price notion, and requires separate presentation of financial assets and liabilities by measurement category and form of financial asset. | January 1, 2018 | We are currently assessing the impact this standard will have on our Consolidated Financial Statements. |
ASU 2016-02 "Leases (Topic 842)" | The standard requires lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. The recognition and presentation of expenses will depend on classification as a finance or operating lease. Entities will adopt this standard through a retrospective approach. | January 1, 2019 | We are currently assessing the impact this standard will have on our Consolidated Financial Statements. |
ASU 2016-09 "Compensation - Stock Compensation (Topic 718)" | This standard simplifies several aspects of the accounting for share-based payment transactions, but may increase volatility in income tax expense. All excess tax benefits and tax deficiencies will be recognized as income tax expense or benefit in the income statement. An entity will recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period, subject to normal valuation allowance considerations. | January 1, 2017 | We are currently assessing the impact this standard will have on our Consolidated Financial Statements and disclosures. |
ASU 2016-13 "Financial Instruments - Credit Losses (Topic 326)" | This standard replaces the incurred loss methodology for recognizing credit losses with a current expected credit losses model and applies to all financial assets, including trade receivables. Entities will adopt the standard using a modified-retrospective approach. | January 1, 2020 | We are currently assessing the impact this standard will have on our Consolidated Financial Statements. |
Recently adopted standards: | |||
ASU 2015-07 "Fair Value Measurement (Topic 820)" | This standard removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. | January 1, 2016 | This adoption of this standard did not have a material impact on our Consolidated Financial Statements. This standard permits us to separately present certain assets in the plan assets table of the Pension Plans Note to the Consolidated Financial Statements in future Form 10-K filings. |
ASU 2015-16 "Business Combinations (Topic 805)" | This standard requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. | January 1, 2016 | The adoption of this standard did not have a material impact on our Consolidated Financial Statements. |
Description | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||
Due from affiliates - current | $ | — | $ | (287 | ) | $ | — | $ | 287 | $ | — | ||||
Investment in subsidiaries | — | (452 | ) | — | 452 | — | |||||||||
Due from affiliates | — | — | (739 | ) | 739 | — | |||||||||
TOTAL ASSETS | $ | — | $ | (739 | ) | $ | (739 | ) | $ | 1,478 | $ | — | |||
Due to affiliates - current | $ | — | $ | — | $ | (287 | ) | $ | 287 | $ | — | ||||
Due to affiliates | — | (739 | ) | — | 739 | — | |||||||||
Total equity | — | — | (452 | ) | 452 | — | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | — | $ | (739 | ) | $ | (739 | ) | $ | 1,478 | $ | — |
Description | Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||
Due from affiliates - current | $ | — | $ | (474 | ) | $ | — | $ | 474 | $ | — | ||||
Investment in subsidiaries | (484 | ) | (569 | ) | (559 | ) | 1,612 | — | |||||||
TOTAL ASSETS | $ | (484 | ) | $ | (1,043 | ) | $ | (559 | ) | $ | 2,086 | $ | — | ||
Due to affiliates - current | $ | (484 | ) | $ | — | $ | 10 | $ | 474 | $ | — | ||||
Total equity | — | (1,043 | ) | (569 | ) | 1,612 | — | ||||||||
TOTAL LIABILITIES AND EQUITY | $ | (484 | ) | $ | (1,043 | ) | $ | (559 | ) | $ | 2,086 | $ | — |
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
NET SALES | $ | — | $ | 1,090 | $ | 567 | $ | (112 | ) | $ | 1,545 | ||||
COST OF SALES | 1 | 821 | 419 | (112 | ) | 1,129 | |||||||||
Gross margin | (1 | ) | 269 | 148 | — | 416 | |||||||||
OPERATING EXPENSES | |||||||||||||||
Marketing and administrative expenses | 35 | 81 | 35 | — | 151 | ||||||||||
Science and technology expenses | — | 17 | 4 | — | 21 | ||||||||||
Other expenses, net | (1 | ) | 23 | (18 | ) | — | 4 | ||||||||
Total operating expenses | 34 | 121 | 21 | — | 176 | ||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (35 | ) | 148 | 127 | — | 240 | |||||||||
Interest expense, net | 24 | (1 | ) | 6 | — | 29 | |||||||||
Gain on extinguishment of debt | — | — | — | — | — | ||||||||||
EARNINGS BEFORE TAXES | (59 | ) | 149 | 121 | — | 211 | |||||||||
Income tax expense | (31 | ) | 71 | 33 | — | 73 | |||||||||
Equity in net earnings of subsidiaries | 166 | 88 | — | (254 | ) | — | |||||||||
Equity in net earnings of affiliates | — | — | 1 | — | 1 | ||||||||||
NET EARNINGS | 138 | 166 | 89 | (254 | ) | 139 | |||||||||
Net earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 138 | $ | 166 | $ | 88 | $ | (254 | ) | $ | 138 |
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
NET SALES | $ | — | $ | 992 | $ | 505 | $ | (94 | ) | $ | 1,403 | ||||
COST OF SALES | 1 | 794 | 394 | (94 | ) | 1,095 | |||||||||
Gross margin | (1 | ) | 198 | 111 | — | 308 | |||||||||
OPERATING EXPENSES | |||||||||||||||
Marketing and administrative expenses | 30 | 70 | 30 | — | 130 | ||||||||||
Science and technology expenses | — | 15 | 3 | — | 18 | ||||||||||
Other expenses, net | (9 | ) | 6 | 7 | — | 4 | |||||||||
Total operating expenses | 21 | 91 | 40 | — | 152 | ||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (22 | ) | 107 | 71 | — | 156 | |||||||||
Interest expense, net | 24 | 1 | 1 | — | 26 | ||||||||||
Gain on extinguishment of debt | (5 | ) | — | — | — | (5 | ) | ||||||||
EARNINGS BEFORE TAXES | (41 | ) | 106 | 70 | — | 135 | |||||||||
Income tax expense | (14 | ) | 37 | 21 | — | 44 | |||||||||
Equity in net earnings of subsidiaries | 118 | 49 | — | (167 | ) | — | |||||||||
Equity in net earnings of affiliates | — | — | 1 | — | 1 | ||||||||||
NET EARNINGS | 91 | 118 | 50 | (167 | ) | 92 | |||||||||
Net earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 91 | $ | 118 | $ | 49 | $ | (167 | ) | $ | 91 |
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
NET SALES | $ | — | $ | 1,977 | $ | 1,025 | $ | (226 | ) | $ | 2,776 | ||||
COST OF SALES | 2 | 1,551 | 761 | (226 | ) | 2,088 | |||||||||
Gross margin | (2 | ) | 426 | 264 | — | 688 | |||||||||
OPERATING EXPENSES | |||||||||||||||
Marketing and administrative expenses | 68 | 153 | 64 | — | 285 | ||||||||||
Science and technology expenses | — | 33 | 7 | — | 40 | ||||||||||
Other expenses, net | (3 | ) | 35 | (25 | ) | — | 7 | ||||||||
Total operating expenses | 65 | 221 | 46 | — | 332 | ||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (67 | ) | 205 | 218 | — | 356 | |||||||||
Interest expense, net | 46 | (1 | ) | 7 | — | 52 | |||||||||
Gain on extinguishment of debt | — | — | — | — | — | ||||||||||
EARNINGS BEFORE TAXES | (113 | ) | 206 | 211 | — | 304 | |||||||||
Income tax expense | (50 | ) | 95 | 62 | — | 107 | |||||||||
Equity in net earnings of subsidiaries | 258 | 147 | — | (405 | ) | — | |||||||||
Equity in net earnings of affiliates | — | — | 1 | — | 1 | ||||||||||
NET EARNINGS | 195 | 258 | 150 | (405 | ) | 198 | |||||||||
Net earnings attributable to noncontrolling interests | — | — | 3 | — | 3 | ||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 195 | $ | 258 | $ | 147 | $ | (405 | ) | $ | 195 |
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
NET SALES | $ | — | $ | 1,833 | $ | 962 | $ | (189 | ) | $ | 2,606 | ||||
COST OF SALES | 1 | 1,515 | 762 | (189 | ) | $ | 2,089 | ||||||||
Gross margin | (1 | ) | 318 | 200 | — | 517 | |||||||||
OPERATING EXPENSES | |||||||||||||||
Marketing and administrative expenses | 62 | 138 | 59 | — | 259 | ||||||||||
Science and technology expenses | — | 29 | 6 | — | 35 | ||||||||||
Other expenses, net | (17 | ) | 12 | 14 | — | 9 | |||||||||
Total operating expenses | 45 | 179 | 79 | — | 303 | ||||||||||
EARNINGS BEFORE INTEREST AND TAXES | (46 | ) | 139 | 121 | — | 214 | |||||||||
Interest expense, net | 48 | 2 | 2 | — | 52 | ||||||||||
Gain on extinguishment of debt | (5 | ) | — | — | — | (5 | ) | ||||||||
EARNINGS BEFORE TAXES | (89 | ) | 137 | 119 | — | 167 | |||||||||
Income tax expense | (29 | ) | 46 | 40 | — | 57 | |||||||||
Equity in net earnings of subsidiaries | 169 | 78 | — | (247 | ) | — | |||||||||
Equity in net earnings of affiliates | — | — | 1 | — | 1 | ||||||||||
NET EARNINGS | 109 | 169 | 80 | (247 | ) | 111 | |||||||||
Net earnings attributable to noncontrolling interests | — | — | 2 | — | 2 | ||||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 109 | $ | 169 | $ | 78 | $ | (247 | ) | $ | 109 |
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
NET EARNINGS | $ | 138 | $ | 166 | $ | 89 | $ | (254 | ) | $ | 139 | ||||
Currency translation adjustment (net of tax) | (13 | ) | — | — | — | (13 | ) | ||||||||
Pension and other postretirement adjustment (net of tax) | — | — | — | — | — | ||||||||||
Deferred gain on hedging (net of tax) | 3 | — | — | — | 3 | ||||||||||
COMPREHENSIVE EARNINGS | 128 | 166 | 89 | (254 | ) | 129 | |||||||||
Comprehensive earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 128 | $ | 166 | $ | 88 | $ | (254 | ) | $ | 128 |
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
NET EARNINGS | $ | 91 | $ | 118 | $ | 50 | $ | (167 | ) | $ | 92 | ||||
Currency translation adjustment (net of tax) | 7 | — | — | — | 7 | ||||||||||
Pension and other postretirement adjustment (net of tax) | (2 | ) | — | — | — | (2 | ) | ||||||||
Deferred gain on hedging (net of tax) | 2 | — | — | — | 2 | ||||||||||
COMPREHENSIVE EARNINGS | 98 | 118 | 50 | (167 | ) | 99 | |||||||||
Comprehensive earnings attributable to noncontrolling interests | — | — | 1 | — | 1 | ||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 98 | $ | 118 | $ | 49 | $ | (167 | ) | $ | 98 |
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
NET EARNINGS | 195 | 258 | 150 | (405 | ) | 198 | |||||||||
Currency translation adjustment (net of tax) | 21 | — | — | — | 21 | ||||||||||
Pension and other postretirement adjustment (net of tax) | 10 | — | — | — | 10 | ||||||||||
Deferred gain on hedging (net of tax) | 4 | — | — | — | 4 | ||||||||||
COMPREHENSIVE EARNINGS | 230 | 258 | 150 | (405 | ) | 233 | |||||||||
Comprehensive earnings attributable to noncontrolling interests | — | — | 3 | — | 3 | ||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 230 | $ | 258 | $ | 147 | $ | (405 | ) | $ | 230 |
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
NET EARNINGS | $ | 109 | $ | 169 | $ | 80 | $ | (247 | ) | $ | 111 | ||||
Currency translation adjustment (net of tax) | (43 | ) | — | — | — | $ | (43 | ) | |||||||
Pension and other postretirement adjustment (net of tax) | 6 | — | — | — | $ | 6 | |||||||||
Deferred gain on hedging (net of tax) | 3 | — | — | — | $ | 3 | |||||||||
COMPREHENSIVE EARNINGS | 75 | 169 | 80 | (247 | ) | 77 | |||||||||
Comprehensive earnings attributable to noncontrolling interests | — | — | 2 | — | 2 | ||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 75 | $ | 169 | $ | 78 | $ | (247 | ) | $ | 75 |
ASSETS | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||
CURRENT ASSETS | |||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 67 | $ | — | $ | 67 | |||||
Receivables, less allowances | — | — | 879 | — | 879 | ||||||||||
Due from affiliates | — | 2,429 | — | (2,429 | ) | — | |||||||||
Inventories | — | 402 | 351 | — | 753 | ||||||||||
Assets held for sale | — | — | 13 | — | 13 | ||||||||||
Other current assets | 14 | 22 | 27 | — | 63 | ||||||||||
Total current assets | 14 | 2,853 | 1,337 | (2,429 | ) | 1,775 | |||||||||
Investment in subsidiaries | 7,526 | 1,818 | — | (9,344 | ) | — | |||||||||
Due from affiliates | — | — | — | — | — | ||||||||||
Property, plant and equipment, net | 466 | 1,444 | 1,149 | — | 3,059 | ||||||||||
Goodwill | — | 1,127 | 217 | — | 1,344 | ||||||||||
Intangible assets, net | — | 1,033 | 244 | (125 | ) | 1,152 | |||||||||
Deferred income taxes | (25 | ) | 386 | 50 | — | 411 | |||||||||
Other non-current assets | 14 | 69 | 153 | — | 236 | ||||||||||
TOTAL ASSETS | $ | 7,995 | $ | 8,730 | $ | 3,150 | $ | (11,898 | ) | $ | 7,977 | ||||
LIABILITIES AND EQUITY | |||||||||||||||
CURRENT LIABILITIES | |||||||||||||||
Accounts payable and accrued liabilities | $ | 57 | $ | 777 | $ | 145 | $ | — | $ | 979 | |||||
Due to affiliates | 1,616 | — | 813 | (2,429 | ) | — | |||||||||
Short-term debt | — | — | — | — | — | ||||||||||
Long-term debt – current portion | 174 | 2 | 1 | — | 177 | ||||||||||
Total current liabilities | 1,847 | 779 | 959 | (2,429 | ) | 1,156 | |||||||||
Long-term debt, net of current portion | 1,959 | 13 | 127 | — | 2,099 | ||||||||||
Due to affiliates | — | — | — | — | — | ||||||||||
Pension plan liability | 281 | — | 94 | — | 375 | ||||||||||
Other employee benefits liability | — | 223 | 15 | — | 238 | ||||||||||
Deferred income taxes | — | — | 32 | — | 32 | ||||||||||
Other liabilities | 44 | 189 | 64 | (125 | ) | 172 | |||||||||
OWENS CORNING STOCKHOLDERS’ EQUITY | |||||||||||||||
Total Owens Corning stockholders’ equity | 3,864 | 7,526 | 1,818 | (9,344 | ) | 3,864 | |||||||||
Noncontrolling interests | — | — | 41 | — | 41 | ||||||||||
Total equity | 3,864 | 7,526 | 1,859 | (9,344 | ) | 3,905 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 7,995 | $ | 8,730 | $ | 3,150 | $ | (11,898 | ) | $ | 7,977 |
ASSETS | Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||
CURRENT ASSETS | |||||||||||||||
Cash and cash equivalents | $ | — | $ | 48 | $ | 48 | $ | — | $ | 96 | |||||
Receivables, less allowances | — | — | 709 | — | 709 | ||||||||||
Due from affiliates | — | 2,387 | — | (2,387 | ) | — | |||||||||
Inventories | — | 389 | 255 | — | 644 | ||||||||||
Assets held for sale | — | — | 12 | — | 12 | ||||||||||
Other current assets | 11 | 21 | 15 | — | 47 | ||||||||||
Total current assets | 11 | 2,845 | 1,039 | (2,387 | ) | 1,508 | |||||||||
Investment in subsidiaries | 7,220 | 1,482 | — | (8,702 | ) | — | |||||||||
Due from affiliates | — | — | — | — | — | ||||||||||
Property, plant and equipment, net | 463 | 1,404 | 1,089 | — | 2,956 | ||||||||||
Goodwill | — | 1,127 | 40 | — | 1,167 | ||||||||||
Intangible assets, net | — | 970 | 160 | (131 | ) | 999 | |||||||||
Deferred income taxes | — | 430 | 62 | — | 492 | ||||||||||
Other non-current assets | 25 | 64 | 133 | — | 222 | ||||||||||
TOTAL ASSETS | $ | 7,719 | $ | 8,322 | $ | 2,523 | $ | (11,220 | ) | $ | 7,344 | ||||
LIABILITIES AND EQUITY | |||||||||||||||
CURRENT LIABILITIES | |||||||||||||||
Accounts payable and accrued liabilities | $ | 56 | $ | 682 | $ | 174 | $ | — | $ | 912 | |||||
Due to affiliates | 1,760 | — | 627 | (2,387 | ) | — | |||||||||
Short-term debt | — | — | 6 | — | 6 | ||||||||||
Long-term debt – current portion | 160 | 2 | 1 | — | 163 | ||||||||||
Total current liabilities | 1,976 | 684 | 808 | (2,387 | ) | 1,081 | |||||||||
Long-term debt, net of current portion | 1,668 | 14 | 20 | — | 1,702 | ||||||||||
Due to affiliates | — | — | — | — | — | ||||||||||
Pension plan liability | 286 | — | 111 | — | 397 | ||||||||||
Other employee benefits liability | — | 227 | 13 | — | 240 | ||||||||||
Deferred income taxes | — | — | 8 | — | 8 | ||||||||||
Other liabilities | 50 | 177 | 41 | (131 | ) | 137 | |||||||||
OWENS CORNING STOCKHOLDERS’ EQUITY | |||||||||||||||
Total Owens Corning stockholders’ equity | 3,739 | 7,220 | 1,482 | (8,702 | ) | 3,739 | |||||||||
Noncontrolling interests | — | — | 40 | — | 40 | ||||||||||
Total equity | 3,739 | 7,220 | 1,522 | (8,702 | ) | 3,779 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 7,719 | $ | 8,322 | $ | 2,523 | $ | (11,220 | ) | $ | 7,344 |
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | $ | (59 | ) | $ | 225 | $ | 171 | $ | (11 | ) | $ | 326 | |||
NET CASH FLOW USED FOR INVESTING ACTIVITIES | |||||||||||||||
Cash paid for property, plant and equipment | (10 | ) | (125 | ) | (52 | ) | — | (187 | ) | ||||||
Proceeds from the sale of assets or affiliates | — | — | — | — | — | ||||||||||
Investment in subsidiaries and affiliates, net of cash acquired | — | — | (450 | ) | — | (450 | ) | ||||||||
Purchases of alloy | — | — | — | — | — | ||||||||||
Proceeds from sale of alloy | — | — | — | — | — | ||||||||||
Other | 2 | — | — | — | 2 | ||||||||||
Net cash flow used for investing activities | (8 | ) | (125 | ) | (502 | ) | — | (635 | ) | ||||||
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | |||||||||||||||
Proceeds from senior revolving credit and receivables securitization facilities | — | — | 434 | — | 434 | ||||||||||
Proceeds from term loan borrowing | 300 | — | — | — | 300 | ||||||||||
Payments on senior revolving credit and receivables securitization facilities | — | — | (326 | ) | — | (326 | ) | ||||||||
Payments on long-term debt | — | — | — | — | — | ||||||||||
Net decrease in short-term debt | — | — | (6 | ) | — | (6 | ) | ||||||||
Cash dividends paid | (40 | ) | — | — | — | (40 | ) | ||||||||
Purchases of treasury stock | (87 | ) | — | — | — | (87 | ) | ||||||||
Intercompany dividends paid | — | — | (11 | ) | 11 | — | |||||||||
Other intercompany loans | (110 | ) | (148 | ) | 258 | — | — | ||||||||
Other | 4 | — | — | — | 4 | ||||||||||
Net cash flow provided by financing activities | 67 | (148 | ) | 349 | 11 | 279 | |||||||||
Effect of exchange rate changes on cash | — | — | 1 | — | 1 | ||||||||||
Net (decrease) increase in cash and cash equivalents | — | (48 | ) | 19 | — | (29 | ) | ||||||||
Cash and cash equivalents at beginning of period | — | 48 | 48 | — | 96 | ||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | — | $ | 67 | $ | — | $ | 67 |
Parent | Guarantor Subsidiaries | Non- Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | $ | (52 | ) | $ | 57 | $ | 101 | $ | — | $ | 106 | ||||
NET CASH FLOW USED FOR INVESTING ACTIVITIES | |||||||||||||||
Cash paid for property, plant and equipment | (8 | ) | (123 | ) | (46 | ) | — | (177 | ) | ||||||
Proceeds from the sale of assets or affiliates | — | — | 2 | — | 2 | ||||||||||
Investment in subsidiaries and affiliates, net of cash acquired | — | — | — | — | — | ||||||||||
Purchases of alloy | — | — | (7 | ) | — | (7 | ) | ||||||||
Proceeds from sale of alloy | — | — | 7 | — | 7 | ||||||||||
Other | — | — | — | — | — | ||||||||||
Net cash flow used for investing activities | (8 | ) | (123 | ) | (44 | ) | — | (175 | ) | ||||||
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | |||||||||||||||
Proceeds from senior revolving credit and receivables securitization facilities | 683 | — | 136 | — | 819 | ||||||||||
Proceeds from term loan borrowing | |||||||||||||||
Payments on senior revolving credit and receivables securitization facilities | (634 | ) | — | — | — | (634 | ) | ||||||||
Payments on long-term debt | (5 | ) | — | (3 | ) | — | (8 | ) | |||||||
Net decrease in short-term debt | — | (25 | ) | 6 | — | (19 | ) | ||||||||
Cash dividends paid | (39 | ) | — | — | — | (39 | ) | ||||||||
Purchase of treasury stock | (47 | ) | — | — | — | (47 | ) | ||||||||
Other intercompany loans | 91 | 95 | (186 | ) | — | — | |||||||||
Other | 11 | — | — | — | 11 | ||||||||||
Net cash flow provided by financing activities | 60 | 70 | (47 | ) | — | 83 | |||||||||
Effect of exchange rate changes on cash | — | — | (1 | ) | — | (1 | ) | ||||||||
Net (decrease) increase in cash and cash equivalents | — | 4 | 9 | — | 13 | ||||||||||
Cash and cash equivalents at beginning of period | — | 1 | 66 | — | 67 | ||||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | — | $ | 5 | $ | 75 | $ | — | $ | 80 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Net sales | $ | 1,545 | $ | 1,403 | $ | 2,776 | $ | 2,606 | ||||
Gross margin | $ | 416 | $ | 308 | $ | 688 | $ | 517 | ||||
% of net sales | 27 | % | 22 | % | 25 | % | 20 | % | ||||
Earnings before interest and taxes | $ | 240 | $ | 156 | $ | 356 | $ | 214 | ||||
Interest expense, net | $ | 29 | $ | 26 | $ | 52 | $ | 52 | ||||
Gain on extinguishment of debt | $ | — | $ | (5 | ) | $ | — | $ | (5 | ) | ||
Income tax expense | $ | 73 | $ | 44 | $ | 107 | $ | 57 | ||||
Net earnings attributable to Owens Corning | $ | 138 | $ | 91 | $ | 195 | $ | 109 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
Location | 2016 | 2015 | 2016 | 2015 | |||||||||
Restructuring costs | Cost of sales | $ | (2 | ) | $ | (1 | ) | $ | (2 | ) | $ | (3 | ) |
Restructuring costs | Other expenses, net | — | 1 | — | 1 | ||||||||
Acquisition-related costs for InterWrap and Ahlstrom transactions | Cost of sales | (1 | ) | — | (1 | ) | — | ||||||
Acquisition-related costs for InterWrap and Ahlstrom transactions | Marketing and administrative expenses | (2 | ) | — | (4 | ) | — | ||||||
Recognition of InterWrap inventory fair value step-up | Cost of sales | (8 | ) | — | (8 | ) | — | ||||||
Total restructuring, acquisition and integration-related costs | $ | (13 | ) | $ | — | $ | (15 | ) | $ | (2 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Restructuring costs | $ | (2 | ) | $ | — | $ | (2 | ) | $ | (2 | ) | |
Acquisition-related costs for InterWrap and Ahlstrom transactions | (3 | ) | — | (5 | ) | — | ||||||
Recognition of InterWrap inventory fair value step-up | (8 | ) | — | (8 | ) | — | ||||||
Total adjusting items | $ | (13 | ) | $ | — | $ | (15 | ) | $ | (2 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ | 138 | $ | 91 | $ | 195 | $ | 109 | ||||
Less: Net earnings attributable to noncontrolling interests | 1 | 1 | 3 | 2 | ||||||||
NET EARNINGS | 139 | 92 | 198 | 111 | ||||||||
Equity in net earnings of affiliates | 1 | 1 | 1 | 1 | ||||||||
Income tax expense | 73 | 44 | 107 | 57 | ||||||||
EARNINGS BEFORE TAXES | 211 | 135 | 304 | 167 | ||||||||
Interest expense, net | 29 | 26 | 52 | 52 | ||||||||
Gain on extinguishment of debt | — | (5 | ) | — | (5 | ) | ||||||
EARNINGS BEFORE INTEREST AND TAXES | 240 | 156 | 356 | 214 | ||||||||
Less: adjusting items from above | (13 | ) | — | (15 | ) | (2 | ) | |||||
ADJUSTED EBIT | $ | 253 | $ | 156 | $ | 371 | $ | 216 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Net sales | $ | 517 | $ | 497 | $ | 990 | $ | 971 | ||||
% change from prior year | 4 | % | -1 | % | 2 | % | — | % | ||||
EBIT | $ | 74 | $ | 67 | $ | 138 | $ | 127 | ||||
EBIT as a % of net sales | 14 | % | 13 | % | 14 | % | 13 | % | ||||
Depreciation and amortization expense | $ | 33 | $ | 31 | $ | 67 | $ | 63 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Net sales | $ | 414 | $ | 451 | $ | 799 | $ | 830 | ||||
% change from prior year | -8 | % | 1 | % | -4 | % | 3 | % | ||||
EBIT | $ | 32 | $ | 25 | $ | 45 | $ | 32 | ||||
EBIT as a % of net sales | 8 | % | 6 | % | 6 | % | 4 | % | ||||
Depreciation and amortization expense | $ | 27 | $ | 26 | $ | 52 | $ | 50 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Net sales | $ | 679 | $ | 503 | $ | 1,108 | $ | 896 | ||||
% change from prior year | 35 | % | 15 | % | 24 | % | -4 | % | ||||
EBIT | $ | 169 | $ | 90 | $ | 242 | $ | 110 | ||||
EBIT as a % of net sales | 25 | % | 18 | % | 22 | % | 12 | % | ||||
Depreciation and amortization expense | $ | 11 | $ | 10 | $ | 21 | $ | 19 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||
Restructuring costs | $ | (2 | ) | $ | — | $ | (2 | ) | $ | (2 | ) | |
Acquisition-related costs for InterWrap and Ahlstrom transactions | (3 | ) | — | (5 | ) | — | ||||||
Recognition of InterWrap inventory fair value step-up | (8 | ) | — | (8 | ) | — | ||||||
General corporate expense and other | (22 | ) | (26 | ) | (54 | ) | (53 | ) | ||||
EBIT | $ | (35 | ) | $ | (26 | ) | $ | (69 | ) | $ | (55 | ) |
Depreciation and amortization | $ | 11 | $ | 9 | $ | 18 | $ | 19 |
Six Months Ended June 30, | ||||||
2016 | 2015 | |||||
Cash balance | $ | 67 | $ | 80 | ||
Net cash flow provided by operating activities | $ | 326 | $ | 106 | ||
Net cash flow used for investing activities | $ | (635 | ) | $ | (175 | ) |
Net cash flow provided by financing activities | $ | 279 | $ | 83 | ||
Availability on the senior revolving credit facility | $ | 791 | $ | 743 | ||
Availability on the receivables securitization facility | $ | 140 | $ | — | ||
Availability on the term loan commitment | $ | — | $ | — |
• | relationships with key customers; |
• | levels of residential and commercial construction activity; |
• | competitive and pricing factors; |
• | levels of global industrial production; |
• | demand for our products; |
• | industry and economic conditions that affect the market and operating conditions of our customers, suppliers or lenders; |
• | foreign exchange and commodity price fluctuations; |
• | our level of indebtedness; |
• | weather conditions; |
• | availability and cost of credit; |
• | availability and cost of energy and raw materials; |
• | issues involving implementation and protection of information technology systems; |
• | domestic and international economic and political conditions, including new legislation or other governmental actions; |
• | our ability to utilize our net operating loss carryforwards; |
• | research and development activities and intellectual property protection; |
• | interest rate movements; |
• | labor disputes; |
• | legal and regulatory proceedings, including litigation and environmental actions; |
• | uninsured losses; |
• | issues related to acquisitions, divestitures and joint ventures; |
• | achievement of expected synergies, cost reductions and/or productivity improvements; and |
• | defined benefit plan funding obligations. |
Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs** | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs** | ||||||
April 1-30, 2016 | 197,806 | $ | 48.67 | 196,600 | 3,592,565 | |||||
May 1-31, 2016 | 301,252 | 47.04 | 300,000 | 3,292,565 | ||||||
June 1-30, 2016 | 500,000 | 49.57 | 498,399 | 2,794,166 | ||||||
Total | 999,058 | * | $ | 48.63 | 994,999 | 2,794,166 |
* | The Company retained 4,059 shares surrendered to satisfy tax withholding obligations in connection with the vesting of restricted shares granted to our employees. |
** | On April 25, 2012, the Company announced a share buy-back program under which the Company is authorized to repurchase up to 10 million shares of Owens Corning’s outstanding common stock. Under the buy-back program, shares may be repurchased through open market, privately negotiated, or other transactions. The timing and actual number of shares repurchased will depend on market conditions and other factors and will be at the Company’s discretion. |
OWENS CORNING | |||||
Registrant | |||||
Date: | July 27, 2016 | By: | /s/ Michael C. McMurray | ||
Michael C. McMurray | |||||
Senior Vice President and | |||||
Chief Financial Officer | |||||
Date: | July 27, 2016 | By: | /s/ Kelly J. Schmidt | ||
Kelly J. Schmidt | |||||
Vice President and | |||||
Controller |
Exhibit Number | Description |
10.38 | Corporate Incentive Plan Terms Applicable to Certain Executive Officers (As Amended and Restated as of January 1, 2016) (incorporated by reference to Exhibit 10.38 of Owens Corning's Quarterly Report on Form 10-Q (File No. 1-33100), for the quarter ended March 31, 2016). |
10.39 | Owens Corning 2016 Stock Plan (incorporated by reference to Exhibit 10.39 of Owens Corning's Quarterly Report on Form 10-Q (File No. 1-33100), for the quarter ended March 31, 2016). |
10.40 | Acknowledgment and Agreement and Second Amendment to Amended and Restated Credit Agreement, dated as of May 27, 2016 (filed herewith). |
31.1 | Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) (filed herewith). |
31.2 | Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a) (filed herewith). |
32.1 | Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 (filed herewith). |
32.2 | Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 (filed herewith). |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
101.DEF | XBRL Taxonomy Extension Definition Linkbase |
101.LAB | XBRL Taxonomy Extension Label Linkbase |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
DOMESTIC SUBSIDIARIES | Guarantor | Immaterial | ||
CDC Corporation | X | |||
Engineered Pipe Systems, Inc. | X | |||
Eric Company | X | |||
IPM Inc. | X | |||
Northern Elastomeric, Inc. | X | |||
OCV Finance, LLC | X | |||
OCV Intellectual Capital, LLC | X | |||
Owens Corning Automotive, LLC | X | |||
Owens Corning Composite Materials, LLC | X | |||
Owens Corning Construction Services, LLC | X | |||
Owens Corning Elaminator Insulation Systems, LLC | X | |||
Owens Corning Fabwel, LLC | X | |||
Owens Corning Foam Insulation, LLC | X | |||
Owens Corning Franchising, LLC | X | |||
Owens Corning HOMExperts, Inc. | X | |||
Owens Corning HT, Inc. | X | |||
Owens Corning Insulating Systems, LLC | X | |||
Owens Corning Intellectual Capital, LLC | X | |||
Owens Corning Mineral Wool, LLC | X | |||
Owens Corning Non-Woven Technology, LLC | X | |||
Owens Corning Receivables LLC | X | |||
Owens Corning Remodeling Systems, LLC | X | |||
Owens Corning Roofing and Asphalt, LLC | X | |||
Owens Corning Sales, LLC | X | |||
Owens Corning Science and Technology, LLC | X | |||
Owens Corning Sunrooms Franchising, LLC | X | |||
Owens Corning Technical Fabrics, LLC | X | |||
Owens Corning U.S. Holdings, LLC | X | |||
Owens-Corning Funding Corporation | X | |||
Soltech, Inc. | X | |||
TF Holding Corp. | X | |||
Thermafiber, Inc. | X |
FOREIGN SUBSIDIARIES |
Crown Mfg. Inc. |
Dutch OC Cooperatief Invest U.A. |
EPS Holding AS |
European Owens Corning Fiberglas SPRL |
Finefiber (Shanghai) Building Material Co. Ltd. |
Finefiber Insulation Co. Pte. Ltd. |
Instalaciones Especializadas en Confort Termoacustico y |
Ampliacion, S. de R.L. de C.V. |
Inversiones Owens Corning Chile Holdings Company |
IP Owens Corning I, S. de R.L. de C.V. |
Norske EPS BOT AS |
OC Canada Finance Inc. |
OC Canada Holdings Company OC Canada Holdings General Partnership |
OC Celfortec Company |
OC Fabrics (Changzhou) Co., Ltd. |
OC Latin American Holdings GmbH |
OC NL Invest Cooperatief U.A. |
OC PRO CV |
OCCV1, Inc. OCCV2, LLC OCV (Thailand) Co. Ltd. |
OCV Chambéry France |
OCV Chambéry International |
OCV Fabrics UK Ltd. |
OCV Italia Srl |
OCV Mexico S. de R.L. de C.V. |
OCV Reinforcements (Hangzhou) Co., Ltd. |
OCV Reinforcements Alcala Spain S.L. |
OCV Servicios Mexico, S.A. de C.V. |
OCV Steklovolokno OAO |
Owens Corning (Australia) Pty Limited |
Owens Corning (China) Investment Company Limited |
Owens Corning (Guangzhou) Fiberglas Co., Ltd. |
Owens Corning (Nanjing) Building Materials Co., Ltd. |
Owens Corning (Shanghai) Fiberglas Co. Ltd. |
Owens Corning (Singapore) Pte Ltd |
Owens Corning (Tianjin) Building Materials Co. Ltd. |
Owens Corning (Xi’an) Building Materials Co., Ltd. |
Owens Corning Alloy Canada GP Inc. |
Owens Corning Alloy Canada LP |
Owens Corning Argentina Sociedad de Responsabilidad Limitada |
Owens Corning Automotive (UK) Ltd. |
Owens Corning BM (Korea), Ltd |
Owens Corning Canada GP Inc. |
Owens Corning Canada Holdings B.V. |
Owens Corning Canada LP |
Owens Corning Cayman (China) Holdings |
Owens Corning Celfortec Canada GP Inc. |
Owens Corning Celfortec LP |
Owens Corning Composites (China) Co., Ltd. |
Owens Corning Composite Materials Canada GP Inc. |
Owens Corning Composite Materials Canada LP |
Owens Corning Composites (Beijing) Co., Ltd. |
Owens Corning DC Pension Plan Limited |
Owens Corning Enterprise (India) Pvt. Ltd. |
Owens Corning Fiberglas A.S. Limitada |
Owens Corning Fiberglas Espana SL |
Owens Corning Fiberglas France |
Owens Corning Fiberglas S.R.L. |
Owens Corning Financial Services ULC |
Owens Corning GlassMetal Services (Suzhou) Co., Ltd. |
Owens Corning Holdings 1 CV |
Owens Corning Holdings 3 CV |
Owens Corning Holdings 4 CV |
Owens Corning Holdings 5 CV |
Owens Corning Holdings Holland B.V. |
Owens Corning Hong Kong Limited |
Owens Corning Industries (India) Private Limited |
Owens Corning Insulating Systems Canada GP Inc. |
Owens Corning Insulating Systems Canada LP |
Owens Corning International Holdings CV |
Owens Corning Japan LLC |
Owens Corning Kohold B.V. |
Owens Corning Korea |
Owens Corning Mexico, S. de R.L. de C.V. |
Owens Corning Remodeling Canada GP Inc. |
Owens Corning Remodeling Canada LP |
Owens Corning Supplementary Pension Plan Limited |
Owens-Corning (India) Private Limited |
Owens-Corning Britinvest Limited |
Owens-Corning Cayman Limited |
Owens-Corning Fiberglas (UK) Pension Plan Ltd. |
Owens-Corning Fiberglas Deutschland GmbH |
Owens-Corning Sweden AB |
Owens-Corning Veil Netherlands B.V. |
Owens-Corning Veil U.K. Ltd. |
Tecnologia Owens Corning I, S. de R.L. de C.V. |
Transandina de Comerico S.A |
Name: | Brad Lazorka |
1. | I have reviewed this quarterly report on Form 10-Q of Owens Corning; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of Owens Corning; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jul. 18, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Owens Corning | |
Entity Central Index Key | 0001370946 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Entity Well Known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Amendment Flag | false | |
Entity Common Stock Shares Outstanding | 114,750,338 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
NET EARNINGS | $ 139 | $ 92 | $ 198 | $ 111 |
Currency translation adjustment (net of tax) | (13) | 7 | 21 | (43) |
Pension and other postretirement adjustment (net of tax of $1 and $(1) for the three months ended June 30, 2016 and 2015, respectively, and $3 and $(3) for the six months ended June 30, 2016 and 2015, respectively) | 0 | (2) | 10 | 6 |
Deferred gain on hedging (net of tax of $(2) and $(1) for the three months ended June 30, 2016 and 2015, respectively, and $(2) and $(2) for the six months ended June 30, 2016 and 2015, respectively) | 3 | 2 | 4 | 3 |
COMPREHENSIVE EARNINGS | 129 | 99 | 233 | 77 |
Net earnings attributable to noncontrolling interests | 1 | 1 | 3 | 2 |
Comprehensive earnings attributable to noncontrolling interests | 1 | 1 | 3 | 2 |
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ 128 | $ 98 | $ 230 | $ 75 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | |||
Pension and other postretirement tax | $ 2 | $ (2) | |
Deferred loss on hedging tax | 0 | $ (1) | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | $ 5 | $ (5) |
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) |
Jun. 30, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Dec. 31, 2014 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $ 67,000,000 | $ 96,000,000 | $ 80,000,000 | $ 67,000,000 | |||||||
Receivables, less allowances of $10 at June 30, 2016 and $8 at December 31, 2015 | 879,000,000 | 709,000,000 | |||||||||
Inventories | 753,000,000 | 644,000,000 | |||||||||
Assets held for sale | 13,000,000 | 12,000,000 | |||||||||
Other current assets | 63,000,000 | 47,000,000 | |||||||||
Total current assets | 1,775,000,000 | 1,508,000,000 | |||||||||
Property, plant and equipment, net | 3,059,000,000 | 2,956,000,000 | |||||||||
Goodwill | 1,344,000,000 | 1,167,000,000 | |||||||||
Intangible assets, net | 1,152,000,000 | 999,000,000 | |||||||||
Deferred income taxes | 411,000,000 | 492,000,000 | |||||||||
Other non-current assets | 236,000,000 | 222,000,000 | |||||||||
TOTAL ASSETS | 7,977,000,000 | 7,344,000,000 | |||||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable and accrued liabilities | 979,000,000 | 912,000,000 | |||||||||
Short-term debt | 0 | 6,000,000 | |||||||||
Long-term debt – current portion | 177,000,000 | 163,000,000 | |||||||||
Total current liabilities | 1,156,000,000 | 1,081,000,000 | |||||||||
Long-term debt, net of current portion | 2,099,000,000 | 1,702,000,000 | |||||||||
Pension plan liability | 375,000,000 | 397,000,000 | |||||||||
Other employee benefits liability | 238,000,000 | 240,000,000 | |||||||||
Deferred income taxes | 32,000,000 | 8,000,000 | |||||||||
Other liabilities | 172,000,000 | 137,000,000 | |||||||||
OWENS CORNING STOCKHOLDERS’ EQUITY | |||||||||||
Preferred stock, par value $0.01 per share (a) | [1] | 0 | 0 | ||||||||
Common stock, par value $0.01 per share (b) | [2] | 1,000,000 | 1,000,000 | ||||||||
Additional paid in capital | 3,965,000,000 | 3,965,000,000 | |||||||||
Accumulated earnings | 1,208,000,000 | 1,055,000,000 | |||||||||
Accumulated other comprehensive deficit | (635,000,000) | (670,000,000) | $ (584,000,000) | ||||||||
Cost of common stock in treasury (c) | [3] | (675,000,000) | (612,000,000) | ||||||||
Total Owens Corning stockholders’ equity | 3,864,000,000 | 3,739,000,000 | |||||||||
Noncontrolling interests | 41,000,000 | 40,000,000 | |||||||||
Total equity | 3,905,000,000 | 3,779,000,000 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ 7,977,000,000 | $ 7,344,000,000 | |||||||||
|
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 9 | $ 8 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 10,000,000 | 10,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 400,000,000 | 400,000,000 |
Common stock, issued | 135,500,000 | 135,500,000 |
Common stock, outstanding | 115,600,000 | 115,900,000 |
Treasury stock shares | 19,900,000 | 19,600,000 |
GENERAL |
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Jun. 30, 2016 | |
General Disclosure [Abstract] | |
GENERAL | GENERAL Unless the context requires otherwise, the terms “Owens Corning,” “Company,” “we” and “our” in this report refer to Owens Corning, a Delaware corporation, and its subsidiaries. The Consolidated Financial Statements included in this report are unaudited, pursuant to certain rules and regulations of the Securities and Exchange Commission, and include, in the opinion of the Company, 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, 2015 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, 2015. Certain reclassifications have been made to the periods presented for 2015 to conform to the classifications used in the periods presented for 2016. During the first quarter of 2016, the Company discovered an error in which certain Value Added Tax ("VAT") balances were inappropriately reported gross versus net in the Consolidated and Condensed Consolidating (Non-Guarantor Subsidiaries) Balance Sheets. We revised the December 31, 2015 balance sheet in these financial statements to correctly report the related VAT balances as a net liability. As of December 31, 2015, this resulted in a decrease to the previously reported Other current assets of $30 million, Other non-current assets of $6 million and Accounts payable and accrued liabilities of $36 million. As of December 31, 2014, this resulted in a decrease to the previously reported Other current assets of $34 million, Other non-current assets of $7 million and Accounts payable and accrued liabilities of $41 million. These revisions were deemed immaterial to the current and prior periods and had no impact on the Consolidated and Condensed Consolidating Statements of Earnings or the Consolidated and Condensed Consolidating Statements of Cash Flows. During the fourth quarter of 2015, the Company revised the Consolidated and Condensed Consolidating Statements of Cash Flows to correct an error for the presentation of non-cash capital expenditures which impacted the operating activities section and investing activities section. Please refer to Note 1 of the Notes to Consolidated Financial Statements in our Form 10-K for the year ended December 31, 2015 for additional information about this revision. The classification error impacted the unaudited Consolidated and Condensed Consolidating Statements of Cash Flows for the six months ended June 30, 2015. For the six months ended June 30, 2015, the impact of this revision increased cash used for Cash paid for property, plant and equipment and decreased cash used for Changes in working capital by $26 million. The effects of this revision did not impact the ending cash balance for any period and were not material to any previously issued financial statements. |
SEGMENT INFORMATION |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGEMENT INFORMATION | SEGMENT INFORMATION The Company has three reportable segments: Composites, Insulation and Roofing. Accounting policies for the segments are the same as those for the Company. The Company’s three reportable segments are defined as follows: Composites – The Composites segment is comprised of our Reinforcements and Downstream businesses. Within the Reinforcements business, the Company manufactures, fabricates and sells glass reinforcements in the form of fiber. Within the Downstream business, the Company manufactures and sells glass fiber products in the form of fabrics, non-wovens, veil and other specialized products. Insulation – Within our Insulation business, the Company manufactures and sells fiberglass insulation into residential, commercial, industrial and other markets for both thermal and acoustical applications. It also manufactures and sells glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation and foam insulation used in above- and below-grade construction applications. Roofing – Within our Roofing business, the Company manufactures and sells residential roofing shingles and oxidized asphalt materials, roofing accessories used in residential and commercial construction and specialty applications, and synthetic packaging materials. NET SALES During the fourth quarter of 2015, the Company discovered an error between Net sales and Cost of sales due to incorrect eliminations in its Composites segment. Please refer to Note 1 of the Notes to Consolidated Financial Statements in our Form 10-K for the year ended December 31, 2015 for additional information about this revision. For the three and six months ended June 30, 2015, the previously reported Net sales and Cost of sales were overstated by $11 million and $15 million, respectively. The effect of correcting these errors was not material to any previously issued financial statements and have been revised in the table below. The following table summarizes our net sales by segment and geographic region (in millions). Corporate eliminations (shown below) largely reflect intercompany sales from Composites to Roofing. External customer sales are attributed to geographic region based upon the location from which the product is shipped to the external customer.
EARNINGS BEFORE INTEREST AND TAXES Earnings before interest and taxes (“EBIT”) by segment consist of net sales less related costs and expenses and are presented on a basis that is used internally for evaluating segment performance. Certain items, such as general corporate expenses or income and certain other expense or income items, are excluded from the internal evaluation of segment performance. Accordingly, these items are not reflected in EBIT for our reportable segments and are included in the Corporate, Other and Eliminations category. The following table summarizes EBIT by segment (in millions):
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INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories consist of the following (in millions):
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DERIVATIVE FINANCIAL INSTRUMENTS |
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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 June 30, 2016, and December 31, 2015, the Company did not have any amounts on deposit with any of its counterparties, nor did any of its counterparties have any amounts on deposit with the Company. The following table presents the fair value of derivatives and hedging instruments and the respective location on the Consolidated Balance Sheets (in millions):
The following table presents the notional amount of derivatives and hedging instruments on the Consolidated Balance Sheet (in millions):
The Company had notional amounts for derivative hedging instruments related to non-designated foreign currency exposure in U.S. Dollars primarily related to Brazilian Real, Chinese Yuan, Indian Rupee, and South Korean Won for $80 million. In addition, the Company had notional amounts for derivative hedging instruments related to non-designated foreign currency exposure in European Euro primarily related to Russian Rubles and U.S. Dollars for $14 million. The following table presents the impact and respective location of derivative activities on the Consolidated Statements of Earnings (in millions):
Cash Flow Hedges The Company uses forward and swap contracts, which qualify as cash flow hedges, to manage forecasted exposure to natural gas and electricity prices. The effective portion of the change in the fair value of cash flow hedges is deferred in accumulated OCI and is subsequently recognized in Cost of Sales on the Consolidated Statements of Earnings for commodity hedges, when the hedged item impacts earnings. Changes in the fair value of derivative assets and liabilities designated as hedging instruments are shown in Other within operating activities on the Consolidated Statements of Cash Flows. Any portion of the change in fair value of derivatives designated as hedging instruments that is determined to be ineffective is recorded in Other expenses, net on the Consolidated Statements of Earnings. The Company currently has natural gas derivatives designated as hedging instruments that mature within 15 months. The Company’s policy for natural gas exposures is to hedge up to 75% of its total forecasted exposures for the next two months, up to 60% of its total forecasted exposures for the following four months, and lesser amounts for the remaining periods. The Company's policy for electricity exposures is to hedge up to 75% of its total forecasted exposures for the current calendar year and up to 65% of its total forecasted exposures for the first calendar year forward. Based on market conditions, approved variation from the standard policy may occur. The Company performs an analysis for effectiveness of its derivatives designated as hedging instruments at the end of each quarter based on the terms of the contract and the underlying item being hedged. In June 2016, the Company entered into a $200 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 10-year fixed rate senior notes in 2016. The Company intends to cash settle these agreements upon issuance of the 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 1.633%. The Company has designated this outstanding forward U.S. Treasury rate lock agreement, which expires on September 15, 2016, as a cash flow hedge. As of June 30, 2016, the $2 million loss on this agreement is deferred in other comprehensive income and will be amortized over the life of the senior notes as a component of interest expense. Hedge ineffectiveness of this agreement was less than $1 million in the second quarter of 2016. In July 2016, the Company entered into a similar forward U.S. Treasury rate lock agreement for $100 million at a locked fixed rate of 1.490%, which expires on September 15, 2016. As of June 30, 2016, $2 million of gains included in accumulated OCI on the Consolidated Balance Sheets relate to natural gas contracts that are expected to impact earnings during the next 12 months. Transactions and events that are expected to occur over the next 12 months that will necessitate recognizing these deferred amounts include the recognition of the hedged item through earnings. Fair Value Hedges In the first quarter of 2016, the Company terminated the interest rate swaps designated to hedge a portion of its 4.20% senior notes due 2022 and received net settlement proceeds totaling $8 million. The swaps were carried at fair value and recorded as other assets or liabilities, with the offset to long-term debt on the Consolidated Balance Sheets. Changes in the fair value of these swaps and that of the related debt were recorded in Interest expense, net on the Consolidated Statements of Earnings. These proceeds were classified as cash provided by operating activities in the Consolidated Statements of Cash Flows. The $8 million fair value adjustment to debt will be amortized through 2022 as a reduction to interest expense in conjunction with the maturity date of the Company's 4.20% senior notes due 2022. Net Investment Hedges The Company uses cross currency forward contracts to hedge a portion of the net investment in foreign subsidiaries against fluctuations in foreign exchange rates. For derivative instruments that are designated and qualify as hedges of net investments in foreign operations, settlements and changes in fair values of the derivative instruments are recognized in Currency translation adjustment, a component of Accumulated OCI, to offset the changes in the values of the net investments being hedged. Any portion of net investment hedges that is determined to be ineffective is recorded in Other expenses, net on the Consolidated Statements of Earnings. Other Derivatives The Company uses forward currency exchange contracts to manage existing exposures to foreign exchange risk related to assets and liabilities recorded on the Consolidated Balance Sheets. Gains and losses resulting from the changes in fair value of these instruments are recorded in Other expenses, net on the Consolidated Statements of Earnings. |
GOODWILL AND OTHER INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | Intangible assets and goodwill consist of the following (in millions):
Other Intangible Assets The Company expects the ongoing amortization expense for amortizable intangible assets to be approximately $27 million in each of the next five fiscal years. The changes in the gross carrying amount of intangible assets by asset group are as follows (in millions):
Goodwill During the second quarter of 2016, goodwill increased by $178 million as a result of the acquisition of InterWrap Holding, Inc. ("InterWrap"); see Note 7 for more details of this acquisition. The Company tests goodwill and indefinite-lived intangible assets for impairment during the fourth quarter of each year, or more frequently should circumstances change or events occur that would more likely than not reduce the fair value of a reporting unit below its carrying amount. No testing was deemed necessary in the first six months of 2016. The changes in the net carrying amount of goodwill by segment are as follows (in millions):
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PROPERTY, PLANT AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPTMENT | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following (in millions):
Machinery and equipment includes certain precious metals used in our production tooling, which comprise approximately 14% and 15% of total machinery and equipment as of June 30, 2016, and December 31, 2015, respectively. Precious metals used in our production tooling are depleted as they are consumed during the production process, which typically represents an annual expense of less than 3% of the outstanding carrying value. |
ACQUISITIONS |
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Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | On April 21, 2016, the Company acquired all outstanding shares of InterWrap, a leading manufacturer of roofing underlayment and packaging materials, for approximately $450 million, net of cash acquired. This acquisition expands the Company’s position in roofing components, strengthens the Company’s capabilities to support the conversion from organic to synthetic underlayment and accelerates its growth in the roofing components market. Interwrap's operating results and a preliminary purchase price allocation have been included in the Roofing segment of the Company's 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 Company's acquisition of InterWrap resulted in intangible assets valued at $163 million. This consists of indefinite-lived trademarks of $59 million, customer relationships of $81 million with an estimated weighted average life of 25 years, and technology, including patented technology, of $23 million with an estimated weighted average useful life of 14 years. Goodwill has been initially valued at approximately $178 million with $20 million expected to be tax-deductible. The factors contributing to the recognition of the amount of goodwill are based on several strategic and synergistic benefits that are expected to be realized from the InterWrap acquisition and will support continued market growth through conversion from organic to synthetic underlayment, as well as provide growth opportunities in lumber and metal packaging. Please refer to Note 5 for further information on these intangible assets. The pro forma effect of this acquisition on earnings was not material. During the second quarter of 2016, the Company recognized $56 million in Net Sales and an $8 million charge related to inventory fair value step-up in Cost of sales on the Consolidated Statements of Earnings. On July 26, 2016, the Company and Ahlstrom agreed to terminate the previously announced acquisition agreement of the non-wovens and fabrics business of Ahlstrom due to challenges associated with obtaining regulatory clearance in Germany. In connection with the termination of the purchase agreement, the Company will pay Ahlstrom a termination fee of approximately $3 million. The expense will be included within Other expenses, net in the Consolidated Statements of Earnings in the third quarter of 2016. |
ASSETS HELD FOR SALE |
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Jun. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE Assets held for sale as of September 30, 2015 consists of Property, plant and equipment related to two closed production facilities in Alcala, Spain and Vado, Italy, and one assembly and warehousing facility held for sale in the United States. |
WARRANTIES |
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||
WARRANTIES | WARRANTIES The Company records a liability for warranty obligations at the date the related products are sold. Adjustments are made as new information becomes available. A reconciliation of the warranty liability is as follows (in millions):
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COST REDUCTION ACTIONS |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COST REDUCTION ACTIONS | 9. 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. Acquisition-Related Costs During the first six months of 2016, the Company incurred $5 million of transaction and integration costs related to its announced acquisitions. Please refer to Note 7 of the Consolidated Financial Statements for further information on these acquisitions. These costs are recorded in the Corporate, Other and Eliminations category. The following table presents the impact and respective location of acquisition-related costs for the first six months of 2016 on the Consolidated Statements of Earnings (in millions):
2014 Cost Reduction Actions During 2014, the Company took actions to reduce costs throughout its global Composites network, mainly through the decision to close a facility in Japan and optimize a facility in Canada, in addition to other cost reduction actions. The Company also took actions in 2014 to streamline its management structure and reduce costs, resulting in the elimination of the Building Materials Group organizational structure. In the first six months of 2016, the Company incurred $2 million of charges for this restructuring, comprised of facility optimization costs and a pension-related charge. The following table summarizes the status of the unpaid liabilities from the Company's restructuring activity (in millions):
The Company expects the unpaid balance of these restructuring costs to be paid over the next year. As of June 30, 2016, the remaining liability balance is comprised of $4 million of severance and $1 million of contract termination. The cumulative charge incurred for these restructuring actions is $40 million, inclusive of all charges related to cost reduction actions and related items. |
DEBT |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | ails of the Company’s outstanding long-term debt are as follows (in millions):
Senior Notes 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. The proceeds from these notes were used to repay $242 million of our 2016 senior notes and $105 million of our 2019 senior notes. The remaining funds were used to pay down our Senior Revolving Credit Facility (as defined below), finance general working capital needs, and for general corporate purposes. The Company issued $600 million of 2022 senior notes on October 17, 2012. Interest on the notes is payable semiannually in arrears on June 15 and December 15 each year, beginning on June 15, 2013. The proceeds of these notes were used to refinance $250 million of our 2016 senior notes and $100 million of our 2019 senior notes and pay down our Senior Revolving Credit Facility. The Company issued $350 million of 2019 senior notes on June 3, 2009. On October 31, 2006, the Company issued $650 million of 2016 senior notes and $540 million of 2036 senior notes. The proceeds of these notes were used to pay certain unsecured and administrative claims, finance general working capital needs and for general corporate purposes. As of June 30, 2016 and December 31, 2015, the $158 million in outstanding principal related to our 2016 senior notes was recorded in Long-term debt - current portion on the Consolidated Balance Sheets, along with $1 million and $2 million, respectively, net in associated unamortized financing fees, discount, and interest rate swap basis adjustment. 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 Senior Notes are fully and unconditionally guaranteed by each of the Company’s current and future domestic subsidiaries that are a borrower or guarantor under the Company’s credit agreement ("Credit Agreement"). The guarantees are unsecured and rank equally in right of payment with all other existing and future senior unsecured indebtedness of the guarantors. The guarantees are effectively subordinated to existing and future secured debt of the guarantors to the extent of the assets securing that indebtedness. The Company has the option to redeem all or part of the Senior Notes at any time at a “make whole” redemption price. The Company is subject to certain covenants in connection with the issuance of the Senior Notes that it believes are usual and customary. The Company was in compliance with these covenants as of June 30, 2016. In the fourth quarter of 2011, the Company terminated the interest rate swaps designated to hedge a portion of the 6.50% senior notes due 2016. The swaps were carried at fair value and recorded as other assets or liabilities, with a fair value adjustment to long-term debt on the Consolidated Balance Sheets. The fair value adjustment to debt will be amortized through 2016 as a reduction to interest expense in conjunction with the maturity date of the 2016 senior notes. In the first quarter of 2016, the Company terminated the existing interest rate swaps designated to hedge a portion of the 4.20% senior notes due 2022 and received net settlement proceeds totaling $8 million. The swaps were carried at fair value and recorded as other assets or liabilities, with a fair value adjustment to long-term debt on the Consolidated Balance Sheets. The proceeds are classified as cash provided by operating activities in the Consolidated Statements of Cash Flows. The $8 million fair value adjustment to debt will be amortized through 2022 as a reduction to interest expense in conjunction with the maturity date of the 2022 senior notes. Senior Revolving Credit Facility The Company amended its $800 million multi-currency senior revolving credit facility (the "Senior Revolving Credit Facility") in November 2015 to extend the maturity to November 2020 and increase the uncommitted incremental loans permitted under the facility from $200 million to $600 million. The Company amended the Senior Revolving Credit Facility in March 2016 to obtain commitments for $300 million of the $600 million of permitted incremental term loans; and in May 2016 to remove certain subsidiaries from the list of named guarantors. The May amendment had no impact on the composition of the Company's consolidated group, and did not impact liquidity terms. The Senior Revolving Credit Facility includes both borrowings and letters of credit. Borrowings under the Senior Revolving Credit Facility may be used for general corporate purposes and working capital. The Company has the discretion to borrow under multiple options, which provide for varying terms and interest rates including the United States prime rate or LIBOR plus a spread. The Senior Revolving Credit Facility contains various covenants, including a maximum allowed leverage ratio and a minimum required interest expense coverage ratio, that the Company believes are usual and customary for a senior unsecured credit agreement. The Company was in compliance with these covenants as of June 30, 2016. As of June 30, 2016, the Company had no borrowings on its Senior Revolving Credit Facility, $9 million of outstanding letters of credit, and $791 million available on this facility. Term Loan During the first quarter of 2016, the Company obtained a term loan commitment for $300 million (the "Term Loan"), as allowed under its existing Senior Revolving Credit Facility. The Term Loan is a partially amortizing loan that requires quarterly principal repayments, with a balloon repayment due in November 2020 for any outstanding borrowings. The Term Loan contains various covenants, including a maximum allowed leverage ratio and a minimum required interest expense coverage ratio, that the Company believes are usual and customary for a senior unsecured credit agreement. The Company was in compliance with these covenants as of June 30, 2016. On April 20, 2016, the Company borrowed the $300 million available on the Term Loan at LIBOR plus a spread. These borrowings were used, in addition to borrowings on the Receivables Securitization Facility, to fund the acquisition of InterWrap. Please see Note 7 of the Notes to Consolidated Financial Statements for more information on this acquisition. As of June 30, 2016, the Company had fully utilized the Term Loan for $300 million in borrowings. Receivables Securitization Facility Included in long-term debt on the Consolidated Balance Sheets are amounts outstanding under a Receivables Purchase Agreement (the “RPA”) that are accounted for as secured borrowings in accordance with Accounting Standards Codification ("ASC") 860, Accounting for Transfers and Servicing. Owens Corning Sales, LLC and Owens Corning Receivables LLC, each a subsidiary of the Company, have a $250 million RPA with certain financial institutions. The securitization facility (the "Receivables Securitization Facility") matures in January 2018. The Company has the ability to borrow at the lenders' cost of funds, which approximates A-1/P-1 commercial paper rates, plus a fixed spread. As of June 30, 2016, the Company utilized the Receivables Securitization Facility for $108 million in borrowings and $2 million of outstanding letters of credit, and had $140 million available on this facility. The Receivable Securitization Facility contains various covenants, including a maximum allowed leverage ratio and a minimum required interest expense coverage ratio that the Company believes are usual and customary for a securitization facility. The Company was in compliance with these covenants as of June 30, 2016. Owens Corning Receivables LLC’s sole business consists of the purchase or acceptance through capital contributions of trade receivables and related rights from Owens Corning Sales, LLC and the subsequent retransfer of or granting of a security interest in such trade receivables and related rights to certain purchasers party to the RPA. Owens Corning Receivables LLC is a separate legal entity with its own separate creditors who will be entitled, upon its liquidation, to be satisfied out of Owens Corning Receivables LLC’s assets prior to any assets or value in Owens Corning Receivables LLC becoming available to Owens Corning Receivables LLC’s equity holders. The assets of Owens Corning Receivables LLC are not available to pay creditors of the Company or any other affiliates of the Company or Owens Corning Sales, LLC. Short-Term Debt At June 30, 2016, the company had no short-term borrowings, as compared to $6 million at December 31, 2015. The short-term borrowings consisted of various operating lines of credit and working capital facilities. Certain of these borrowings are collateralized by receivables, inventories or property. The borrowing facilities are typically for one-year renewable terms. The weighted average interest rate on all short-term borrowings was 4.5% for December 31, 2015. |
PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS |
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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. During the second quarter of 2016, the Company recorded a $6 million pension curtailment gain related to 2015. This benefit was recorded in Cost of sales on the Consolidated Statement of Earnings and reduced General corporate expense and other in our Corporate, Other and Eliminations category. The effect of this error was not material to the current or any previously issued financial statements. The following tables provide information regarding pension expense recognized (in millions):
The Company expects to contribute approximately $50 million in cash to the U.S. pension plans and another $13 million to non-U.S. plans during 2016. The Company made cash contributions of approximately $9 million to the plans during the six months ended June 30, 2016. Postemployment and Postretirement Benefits Other than Pension Plans The Company maintains healthcare and life insurance benefit plans for certain retired employees and their dependents. The health care plans in the United States are non-funded and pay either (1) stated percentages of covered medically necessary expenses, after subtracting payments by Medicare or other providers and after stated deductibles have been met, or (2) fixed amounts of medical expense reimbursement. The following table provides the components of net periodic benefit cost for aggregated United States and non-United States Plans for the periods indicated (in millions):
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CONTINGENT LIABILITIES AND OTHER MATTERS |
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Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENT LIABILITIES AND OTHER MATTERS | CONTINGENT LIABILITIES AND OTHER MATTERS The Company may be involved in various legal and regulatory proceedings relating to employment, antitrust, tax, product liability, environmental and other matters (collectively, “Proceedings”). The Company regularly reviews the status of such Proceedings along with legal counsel. Liabilities for such Proceedings are recorded when it is probable that the liability has been incurred and when the amount of the liability can be reasonably estimated. Liabilities are adjusted when additional information becomes available. Management believes that the amount of any reasonably possible losses in excess of any amounts accrued, if any, with respect to such Proceedings or any other known claim, including the matters described below under the caption Environmental Matters (the “Environmental Matters”) are not material to the Company’s financial statements. Management believes that the ultimate disposition of the Proceedings and the Environmental Matters will not have a material adverse effect on the Company’s financial condition. While the likelihood is remote, the disposition of the Proceedings and Environmental Matters could have a material impact on the results of operations, cash flows or liquidity in any given reporting period. Litigation and Regulatory Proceedings The Company is involved in litigation and regulatory Proceedings from time to time in the regular course of its business. The Company believes that adequate provisions for resolution of all contingencies, claims and pending matters have been made for probable losses that are reasonably estimable. Environmental Matters The Company has established policies and procedures designed to ensure that its operations are conducted in compliance with all relevant laws and regulations and that enable the Company to meet its high standards for corporate sustainability and environmental stewardship. Our manufacturing facilities are subject to numerous foreign, federal, state and local laws and regulations relating to the presence of hazardous materials, pollution and protection of the environment, including emissions to air, discharges to water, management of hazardous materials, handling and disposal of solid wastes, and remediation of contaminated sites. All Company manufacturing facilities operate using an ISO 14001 or equivalent environmental management system. The Company’s 2020 Sustainability Goals require significant global reductions in energy use, water consumption, waste to landfill, and emissions of greenhouse gases, fine particulate matter and toxic air emissions. Owens Corning is involved in remedial response activities and is responsible for environmental remediation at a number of sites, including certain of its currently owned or formerly owned plants. These responsibilities arise under a number of laws, including, but not limited to, the Federal Resource Conservation and Recovery Act ("RCRA"), and similar state or local laws pertaining to the management and remediation of hazardous materials and petroleum. The Company has also been named a potentially responsible party under the U.S. Federal Superfund law, or state equivalents, at a number of disposal sites. The Company became involved in these sites as a result of government action or in connection with business acquisitions. As of June 30, 2016, the Company was involved with a total of 20 sites worldwide, including 7 Superfund sites and 13 owned or formerly owned sites. None of the liabilities for these sites are individually significant to the Company. Remediation activities generally involve a potential range of activities and costs related to soil and groundwater contamination. This can include pre-cleanup activities such as fact finding and investigation, risk assessment, feasibility studies, remedial action design and implementation (where actions may range from monitoring to removal of contaminants, to installation of longer-term remediation systems). A number of factors affect the cost of environmental remediation, including the number of parties involved in a particular site, the determination of the extent of contamination, the length of time the remediation may require, the complexity of environmental regulations, variability in clean-up standards, the need for legal action, and changes in remediation technology. Taking these factors into account, Owens Corning has predicted the costs of remediation reasonably estimated to be paid over a period of years. The Company accrues an amount on an undiscounted basis, consistent with the reasonable estimates of these costs when it is probable that a liability has been incurred. Actual cost may differ from these estimates for the reasons mentioned above. At June 30, 2016, the Company had an accrual totaling $2 million, for these costs. Changes in required remediation procedures or timing of those procedures, or discovery of contamination at additional sites, could result in material increases to the Company’s environmental obligations. |
STOCK COMPENSATION |
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STOCK COMPENSATION | STOCK COMPENSATION Stock Plans 2016 Stock Plan On April 21, 2016, the Company’s stockholders approved the Owens Corning 2016 Stock Plan (the “2016 Stock Plan”) which replaced the Owens Corning 2013 Stock Plan (the "2013 Stock Plan"). The 2016 Stock Plan authorizes grants of stock options, stock appreciation rights, restricted stock awards, restricted stock units, bonus stock awards and performance stock awards. Under the 2016 Stock Plan, 2.5 million shares of common stock may be granted in addition to the 1.4 million shares of Company common stock that rolled over from the 2013 Stock Plan as of April 21, 2016. Such shares of common stock include shares that were available but not granted, or which were granted but were not issued or delivered due to expiration, termination, cancellation or forfeiture of such awards. There will be no future grants made under the 2013 Stock Plan. At June 30, 2016, the number of shares remaining available under the 2016 Stock Plan for all stock awards was 3.9 million. Stock Options The Company did not grant any stock options during the six months ended June 30, 2016. The Company calculates a weighted-average grant-date fair value using a Black-Scholes valuation model for options granted. Compensation expense for options is measured based on the fair market value of the option on the date of grant, and is recognized on a straight-line basis over a four year vesting period. In general, the exercise price of each option awarded was equal to the market price of the Company’s common stock on the date of grant, and an option’s maximum term is 10 years. During the three and six months ended June 30, 2016, the Company recognized expense of less than $1 million and $1 million, respectively, related to the Company's stock options. During the three and six months ended June 30, 2015, the Company recognized expense of $1 million and $2 million respectively, related to the Company's stock options. As of June 30, 2016, there was $3 million of total unrecognized compensation cost related to stock options. That cost is expected to be recognized over a weighted-average period of 1.43 years. The total aggregate intrinsic value of options outstanding as of June 30, 2016 was $34 million. The following table summarizes the Company’s stock option activity:
The following table summarizes information about the Company’s options outstanding and exercisable:
Restricted Stock Awards and Restricted Stock Units The Company has granted restricted stock awards and restricted stock units (collectively referred to as “restricted stock”) as a part of its long-term incentive plan. Compensation expense for restricted stock is measured based on the market price of the stock at date of grant and is recognized on a straight-line basis over the four-year vesting period. Stock restrictions are subject to alternate vesting plans for death, disability, approved early retirement and involuntary termination, over various periods ending in 2020. During the three and six months ended June 30, 2016, the Company recognized expense of $5 million and $9 million related to the Company's restricted stock. During the three and six months ended June 30, 2015, the Company recognized expense of $4 million and $8 million, respectively, related to the Company's restricted stock. As of June 30, 2016, there was $38 million of total unrecognized compensation cost related to restricted stock. That cost is expected to be recognized over a weighted-average period of 2.88 years. The total fair value of shares vested during the six months ended June 30, 2016 and 2015 was $14 million and $17 million, respectively. The following table summarizes the Company’s restricted stock activity:
Performance Stock Awards and Performance Stock Units The Company has granted performance stock awards and performance stock units (collectively referred to as “PSUs”) as a part of its long-term incentive plan. All outstanding performance grants will fully settle in stock. The amount of stock ultimately distributed from all performance shares issued after the 2014 grants is contingent on meeting internal company-based metrics or an external-based stock performance metric. The amount of stock ultimately distributed from the 2014 grant is contingent on meeting an external based stock performance metric. In the six months ended June 30, 2016, the Company granted both internal company-based and external-based metric PSUs. Internal based metrics The internal company-based metrics vest after a three-year period and are based on various Company metrics. The amount of stock distributed will vary from 0% to 300% of PSUs awarded depending on performance versus the 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 three-year performance period. Pro-rata vesting may be utilized in the case of death, disability or approved retirement and awards if earned will be paid at the end of the three-year period. External based metrics The external-based metrics vest after a three-year period. Outstanding grants issued in 2015 and forward are based on the Company's total stockholder return relative to the performance of the S&P Building & Construction Industry Index. Outstanding grants issued prior to 2015 are based on the Company's total stockholder return relative to the performance of the companies in the S&P 500 Index. The amount of stock distributed will vary from 0% to 200% of PSUs awarded depending on the relative stockholder return performance. The Company estimated the fair value of the external-based metric performance stock grants using a Monte Carlo simulation. The external-based metric performance stock granted in 2016 uses various assumptions that include expected volatility of 26.6%, and a risk free interest rate of 0.8% , both of which were based on an expected term of 2.91 years. Expected volatility was based on a benchmark study of our peers. The risk-free interest rate was based on zero coupon U.S. Treasury bills at the time of grant. The expected term represents the period from the grant date to the end of the three-year performance period. Compensation expense for external based metric PSUs is measured based on the grant date fair value and is recognized on a straight-line basis over the vesting period. Pro-rata vesting may be utilized in the case of death, disability or approved retirement, and awards if earned will be paid at the end of the three-year period. During the three and six months ended June 30, 2016, the Company recognized expense of $3 million and $5 million, respectively, related to PSUs. During the three and six months ended June 30, 2015, the Company recognized expense of $1 million and $3 million respectively, related to the Company's PSUs. As of June 30, 2016, there was $17 million of total unrecognized compensation cost related to PSUs. That cost is expected to be recognized over a weighted-average period of 2.04 years. The following table summarizes the Company’s PSU activity:
Employee Stock Purchase Plan On April 18, 2013, the Company’s stockholders approved the Owens Corning Employee Stock Purchase Plan (“ESPP”). The ESPP is a tax-qualified plan under Section 423 of the Internal Revenue Code. The purchase price of shares purchased under the ESPP is equal to 85% of the lower of the fair market value of shares of Owens Corning common stock at the beginning or ending of the offering period, which is a six-month period ending on May 31 and November 30 of each year. At the approval date, 2 million shares were available for purchase under the ESPP. As of June 30, 2016, 1.4 million shares remain available for purchase. During the three and six months ended June 30, 2016, the Company recognized expense of less than $1 million and $1 million, respectively, related to the Company's ESPP. During the three and six months ended June 30, 2015, the Company recognized expense of $1 million, and $1 million respectively, related to the Company's ESPP. As of June 30, 2016, there was $1 million of total unrecognized compensation cost related to the ESPP. |
EARNINGS PER SHARE |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE The following table is a reconciliation of weighted-average shares for calculating basic and diluted earnings per-share (in millions, except per share amounts):
In 2012, the Company approved a new share buy-back program under which the Company is authorized to repurchase up to 10 million shares of the Company’s outstanding common stock (the “Repurchase Program”). The Repurchase Program authorizes the Company to repurchase shares through the open market, privately negotiated transactions or other transactions. The actual number of shares repurchased will depend on timing, market conditions and other factors and will be at the Company’s discretion. The Company repurchased 1.8 million shares of its common stock for $85 million during the six months ended June 30, 2016 under the Repurchase Program. As of June 30, 2016, 2.8 million shares remain available for repurchase under the Repurchase Program. For the three and six months ended June 30, 2016, the number of shares used in the calculation of diluted earnings per share did not include 0.1 million non-vested performance shares due to their anti-dilutive effect. For the three and six months ended June 30, 2015, the number of shares used in the calculation of diluted earnings per share did not include 0.1 million non-vested restricted and performance shares and 0.6 million of options to purchase common stock, due to their anti-dilutive effect. |
FAIR VALUE MEASUREMENT |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENT | FAIR VALUE MEASUREMENT The Company classifies and discloses assets and liabilities carried at fair value in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Items Measured at Fair Value The carrying value of cash and cash equivalents, accounts receivable and short-term debt approximate fair value because of the short-term maturity of the instruments. Derivatives The Company executes financial derivative contracts for the purpose of mitigating risk exposure that is generated from our normal operations. These derivatives consist of natural gas swaps, interest rate swaps, cross currency swaps, and foreign exchange forward contracts, all of which are over-the-counter and not traded through an exchange. The Company uses widely accepted valuation tools to determine fair value, such as discounting cash flows to calculate a present value for the derivatives. The models use Level 2 inputs, such as forward curves and other commonly quoted observable transactions and prices. The following table summarizes the fair values and levels within the fair value hierarchy in which the fair value measurements fall as of June 30, 2016 (in millions):
The following table summarizes the fair values and levels within the fair value hierarchy in which the fair value measurements fall as of December 31, 2015 (in millions):
Items Disclosed at Fair Value Long-term debt The following table shows the fair value of the Company’s long-term debt as calculated based on quoted market prices for the same or similar issues (Level 2 input), or on the current rates offered to the Company for debt of the same remaining maturities:
The Company determined that the book value of the remaining long-term debt instruments approximates market value. |
INCOME TAXES |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
There was no difference between the effective tax rate and the U.S. federal statutory tax rate of 35% for the three and six months ended June 30, 2016. Realization of deferred tax assets depends on achieving a certain minimum level of future taxable income. Management currently believes that it is at least reasonably possible that the minimum level of taxable income will be met within the next 12 months to reduce the valuation allowance of certain foreign jurisdictions by a range of $0 million to $32 million. The difference between the effective tax rate and the U.S. federal statutory tax rate of 35% for the three and six months ended June 30, 2015 is primarily attributable to the tax accounting treatment of various locations which are currently in a loss position, the benefit of lower foreign tax rates and other discrete tax adjustments. |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME | following table summarizes the changes in accumulated other comprehensive income (deficit) (“AOCI”) (in millions):
(a) These AOCI components are included in the computation of total Pension and OPEB expense and are recorded in Cost of sales and Marketing and administrative expenses. See Note 11 for additional information. (b) Amounts reclassified from gain/(loss) on cash flow hedges are reclassified from AOCI to income when the hedged item affects earnings and are recognized in Cost of sales. See Note 4 for additional information. |
ACCOUNTING PRONOUNCEMENTS |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTING PRONOUNCEMENTS | following table summarizes recent accounting standard updates ("ASU") issued by the Financial Accounting Standards Board (the "FASB") that could have an impact on the Company's Consolidated Financial Statements:
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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | The following Condensed Consolidating Financial Statements present the financial information required with respect to those entities which guarantee certain of the Company’s debt. The Condensed Consolidating Financial Statements are presented on the equity method. Under this method, the investments in subsidiaries are recorded at cost and adjusted for the Company’s share of the subsidiaries’ cumulative results of operations, capital contributions, distributions and other equity changes. The principal elimination entries eliminate investment in subsidiaries and intercompany balances and transactions. In May 2016, the Company entered into an Acknowledgment and Agreement and Second Amendment to its Credit Agreement which, among other things, removed certain subsidiaries from the list of named guarantors. This amendment had no impact on the composition of the Company’s consolidated group and had no effect on the Consolidated Financial Statements including total stockholders' equity in Guarantor Subsidiaries. The Condensed Consolidating Balance Sheet was revised to present the financial statements of the Guarantor Subsidiaries and Nonguarantor Subsidiaries for December 31, 2015, based on their composition at June 30, 2016. The related increases (decreases) from the revisions are shown in the table below (in millions):
During the second quarter of 2016, the Company discovered classification errors in the December 31, 2015 Condensed Consolidating Balance Sheet related to intercompany activity recorded in the Due from and Due to affiliates, Investment in subsidiary and Equity line items between and among the Parent, Guarantor Subsidiaries and Non-Guarantor Subsidiaries. These classifications errors had no effect on the Consolidated Financial Statements. The effect of correcting these classification errors was not material to the 2015 Condensed Consolidating Balance Sheet, and the related amounts presented as of December 31, 2015 have been revised. The related increases (decreases) from the revisions are shown in the table below (in millions):
The combined impact of the changes to the guarantor list and the classification errors resulted in overstatements of Total assets and Total liabilities and equity of the Parent, Guarantor Subsidiaries and Non-Guarantor subsidiaries in the amounts of $484 million, $1,889 million and $1,354 million, respectively, at March 31, 2016 and $484 million, $1,923 million and $1,439 million, respectively, at December 31, 2014. The combined impact of these changes on the Due from and Due to affiliates, Investment in subsidiaries and Total equity between and among the Parent, Guarantor Subsidiaries and Non-Guarantor Subsidiaries at March 31, 2016 and December 31, 2014 is similar to the impact to these accounts at December 31, 2015 illustrated in the tables above. The effect of correcting the classification errors described above was not material to the March 31, 2016 and December 31, 2014 Condensed Consolidating Balance Sheets. Guarantor and Nonguarantor Financial Statements The Senior Notes and the Senior Revolving Credit Facility are guaranteed, fully, unconditionally and jointly and severally, by each of Owens Corning’s current and future 100% owned material domestic subsidiaries (excluding certain domestic subsidiaries that own, or are owned by, controlled foreign corporations, as the term is defined in the Internal Revenue Code) that is a borrower or a guarantor under the Credit Agreement, which permits changes to the named guarantors in certain situations (collectively, the “Guarantor Subsidiaries”). The remaining subsidiaries have not guaranteed the Senior Notes and the Senior Revolving Credit Facility (collectively, the “Nonguarantor Subsidiaries”). OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2016 (in millions)
OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2015 (in millions)
OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2016 (in millions)
OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2015 (in millions)
OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2016 (in millions)
OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2015 (in millions)
OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2016 (in millions)
OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2015 (in millions)
OWENS CORNING AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET AS OF JUNE 30, 2016 (in millions)
OWENS CORNING AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2015 (in millions)
OWENS CORNING AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2016 (in millions)
OWENS CORNING AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2015 (in millions)
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SEGMENT INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | The following table summarizes our net sales by segment and geographic region (in millions). Corporate eliminations (shown below) largely reflect intercompany sales from Composites to Roofing. External customer sales are attributed to geographic region based upon the location from which the product is shipped to the external customer.
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Schedule of Revenues by Geographical Areas |
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Schedule of Earnings before Interest and Taxes | The following table summarizes EBIT by segment (in millions):
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INVENTORIES (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, Current | Inventories consist of the following (in millions):
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DERIVATIVE FINANCIAL INSTRUMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
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Schedule of Fair Value Derivative Instruments Statements of Earnings Location | The following table presents the impact and respective location of derivative activities on the Consolidated Statements of Earnings (in millions):
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Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table presents the notional amount of derivatives and hedging instruments on the Consolidated Balance Sheet (in millions):
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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Intangible assets and goodwill consist of the following (in millions):
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Schedule of Finite-Lived Intangible Assets [Table Text Block] | The changes in the gross carrying amount of intangible assets by asset group are as follows (in millions):
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Schedule of Goodwill | The changes in the net carrying amount of goodwill by segment are as follows (in millions):
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Property, plant and equipment consist of the following (in millions):
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WARRANTIES (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||
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. A reconciliation of the warranty liability is as follows (in millions):
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COST REDUCTION ACTIONS (Tables) - USD ($) $ in Millions |
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Jun. 30, 2016 |
Dec. 31, 2015 |
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Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Reserve, Settled without Cash | $ (2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2015 | $ 5 | $ 7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block] | Acquisition-Related Costs During the first six months of 2016, the Company incurred $5 million of transaction and integration costs related to its announced acquisitions. Please refer to Note 7 of the Consolidated Financial Statements for further information on these acquisitions. These costs are recorded in the Corporate, Other and Eliminations category. The following table presents the impact and respective location of acquisition-related costs for the first six months of 2016 on the Consolidated Statements of Earnings (in millions):
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Cost Reduction Actions 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | 2014 Cost Reduction Actions During 2014, the Company took actions to reduce costs throughout its global Composites network, mainly through the decision to close a facility in Japan and optimize a facility in Canada, in addition to other cost reduction actions. The Company also took actions in 2014 to streamline its management structure and reduce costs, resulting in the elimination of the Building Materials Group organizational structure. In the first six months of 2016, the Company incurred $2 million of charges for this restructuring, comprised of facility optimization costs and a pension-related charge. The following table summarizes the status of the unpaid liabilities from the Company's restructuring activity (in millions):
The Company expects the unpaid balance of these restructuring costs to be paid over the next year. As of June 30, 2016, the remaining liability balance is comprised of $4 million of severance and $1 million of contract termination. The cumulative charge incurred for these restructuring actions is $40 million, inclusive of all charges related to cost reduction actions and related items. |
DEBT (Tables) |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Details of the Company’s outstanding long-term debt are as follows (in millions):
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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) |
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Pension Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The following tables provide information regarding pension expense recognized (in millions):
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Other Postretirement Benefits Other Than Pensions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The following table provides the components of net periodic benefit cost for aggregated United States and non-United States Plans for the periods indicated (in millions):
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STOCK COMPENSATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes the Company’s stock option activity:
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Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | The following table summarizes information about the Company’s options outstanding and exercisable:
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Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity |
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Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest |
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EARNINGS PER SHARE (Tables) |
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table is a reconciliation of weighted-average shares for calculating basic and diluted earnings per-share (in millions, except per share amounts):
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FAIR VALUE MEASUREMENT (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Long Term Debt [Table Text Block] | Long-term debt The following table shows the fair value of the Company’s long-term debt as calculated based on quoted market prices for the same or similar issues (Level 2 input), or on the current rates offered to the Company for debt of the same remaining maturities:
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Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table summarizes the fair values and levels within the fair value hierarchy in which the fair value measurements fall as of June 30, 2016 (in millions):
The following table summarizes the fair values and levels within the fair value hierarchy in which the fair value measurements fall as of December 31, 2015 (in millions):
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INCOME TAXES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The following table provides the Income tax expense (in millions) and effective tax rate for the periods indicated:
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CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive income (deficit) (“AOCI”) (in millions):
(a) These AOCI components are included in the computation of total Pension and OPEB expense and are recorded in Cost of sales and Marketing and administrative expenses. See Note 11 for additional information. (b) Amounts reclassified from gain/(loss) on cash flow hedges are reclassified from AOCI to income when the hedged item affects earnings and are recognized in Cost of sales. See Note 4 for additional information. |
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2015 |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Related Increases (Decreases) from Previous Revisions to Condensed Consolidating Balance Sheet | The related increases (decreases) from the revisions are shown in the table below (in millions):
The related increases (decreases) from the revisions are shown in the table below (in millions):
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Condensed Consolidating Statement of Earnings | OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2015 (in millions)
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OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2015 (in millions)
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Condensed Consolidating Statement Of Comprehensive Earnings [Table Text Block] | OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2015 (in millions)
WENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2016 (in millions)
OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2016 (in millions)
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OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2015 (in millions)
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Condensed Consolidating Balance Sheet | OWENS CORNING AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET AS OF JUNE 30, 2016 (in millions)
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OWENS CORNING AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 31, 2015 (in millions)
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Condensed Consolidating Statement of Cash Flows | OWENS CORNING AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2016 (in millions)
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OWENS CORNING AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2015 (in millions)
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GENERAL (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Jun. 30, 2015 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Restatement of Prior Year Cash Flow | $ 26 | ||
Other Current Assets [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Restatement of Prior Year Balance Sheet | $ 30 | $ 34 | |
Other Noncurrent Assets [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Restatement of Prior Year Balance Sheet | 6 | 7 | |
Accounts Payable and Accrued Liabilities [Member] | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Restatement of Prior Year Balance Sheet | $ 36 | $ 41 |
INVENTORIES (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished goods | $ 525 | $ 436 |
Materials and supplies | 228 | 208 |
Total inventories | $ 753 | $ 644 |
GOODWILL AND OTHER INTANGIBLE ASSETS - GOODWILL ROLLFORWARD (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 1,167 |
Acquisitions | 178 |
Foreign currency translation | (1) |
Balance at end of period | 1,344 |
Composites | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 56 |
Acquisitions | 0 |
Foreign currency translation | (1) |
Balance at end of period | 55 |
Insulation | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 888 |
Acquisitions | 0 |
Foreign currency translation | 0 |
Balance at end of period | 888 |
Roofing | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 223 |
Acquisitions | 178 |
Foreign currency translation | 0 |
Balance at end of period | 401 |
InterWrap | |
Goodwill [Roll Forward] | |
Acquisitions | $ 178 |
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Property Plant And Equipment [Line Items] | ||
Property Plant And Equipment Gross | $ 5,035 | $ 4,811 |
Accumulated depreciation | (1,976) | (1,855) |
Property, plant and equipment, net | $ 3,059 | $ 2,956 |
Precious Metals Percentage | 0.15 | 0.15 |
Precious Metals Depletion Percentage | 0.00% | 0.00% |
precious metal percent of deprecation expense | 0.03 | |
Land | ||
Property Plant And Equipment [Line Items] | ||
Property Plant And Equipment Gross | $ 192 | $ 186 |
Buildings and Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Property Plant And Equipment Gross | 863 | 788 |
Machinery And Equipment | ||
Property Plant And Equipment [Line Items] | ||
Property Plant And Equipment Gross | 3,731 | 3,478 |
Construction In Progress | ||
Property Plant And Equipment [Line Items] | ||
Property Plant And Equipment Gross | $ 249 | $ 359 |
WARRANTIES (Details) $ in Millions |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Movement In Standard And Extended Product Warranty Increase Decrease Roll Forward | |
Product Warranty Accrual, Beginning Balance | $ 43 |
Amounts accrued for current year | 11 |
Settlements of warranty claims | (6) |
Product Warranty Accrual, Ending Balance | $ 48 |
CONTINGENT LIABILITIES AND OTHER MATTERS (Details) $ in Millions |
3 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
site
| |
Unusual or Infrequent Item [Line Items] | |
Environmental Liability Sites | 20 |
Environmental Exit Costs, Reasonably Possible Additional Losses, Best Estimate | $ | $ 2 |
Superfund Site [Domain] | |
Unusual or Infrequent Item [Line Items] | |
Environmental Liability Sites | 7 |
Owned or formally owned sites [Domain] | |
Unusual or Infrequent Item [Line Items] | |
Environmental Liability Sites | 13 |
INCOME TAXES (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Valuation Allowance [Line Items] | ||||
Income tax expense | $ 73 | $ 44 | $ 107 | $ 57 |
Current Income Tax Expense (Benefit) | $ 44 | $ 57 | ||
Effective Income Tax Rate Continuing Operations | 35.00% | 0.00% | 35.00% | 0.00% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 0.00% | |||
Minimum [Member] | ||||
Valuation Allowance [Line Items] | ||||
Operating Loss Carryforwards, Valuation Allowance | $ 0 | $ 0 | ||
Maximum [Member] | ||||
Valuation Allowance [Line Items] | ||||
Operating Loss Carryforwards, Valuation Allowance | $ 32 | $ 32 |
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Total AOCI beginning balance | $ (670) | |||
Deferred loss on hedging transactions (net of tax) | $ 3 | $ 2 | 4 | $ 3 |
Pension and other postretirement adjustment (net of tax) | 0 | (2) | 10 | 6 |
Translation impact on non-US. Plans | (13) | 7 | 21 | (43) |
Total AOCI ending balance | $ (635) | $ (584) | $ (635) | $ (584) |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE EARNINGS (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statement Of Comprehensive Earnings [Table Text Block] | OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2015 (in millions)
WENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2016 (in millions)
OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2016 (in millions)
|
OWENS CORNING AND SUBSIDIARIES CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2015 (in millions)
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NET EARNINGS | $ 139 | $ 92 | $ 198 | $ 111 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment (net of tax) | (13) | 7 | 21 | (43) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and other postretirement adjustment (net of tax) | 0 | (2) | 10 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging transactions (net of tax) | 3 | 2 | 4 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE EARNINGS | 129 | 99 | 233 | 77 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive earnings attributable to noncontrolling interests | 1 | 1 | 3 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 1 | 1 | 3 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | 128 | 98 | 230 | 75 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation, Eliminations [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET EARNINGS | (254) | (167) | (405) | (247) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment (net of tax) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and other postretirement adjustment (net of tax) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging transactions (net of tax) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE EARNINGS | (254) | (167) | (405) | (247) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | (254) | (167) | (405) | (247) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET EARNINGS | 89 | 50 | 150 | 80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment (net of tax) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and other postretirement adjustment (net of tax) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging transactions (net of tax) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE EARNINGS | 89 | 50 | 150 | 80 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive earnings attributable to noncontrolling interests | 1 | 1 | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 1 | 1 | 3 | 2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | 88 | 49 | 147 | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantor Subsidiaries [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET EARNINGS | 166 | 118 | 258 | 169 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment (net of tax) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and other postretirement adjustment (net of tax) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging transactions (net of tax) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE EARNINGS | 166 | 118 | 258 | 169 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | 166 | 118 | 258 | 169 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Parent Company [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET EARNINGS | 138 | 91 | 195 | 109 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Currency translation adjustment (net of tax) | (13) | 7 | 21 | (43) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and other postretirement adjustment (net of tax) | 0 | (2) | (10) | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred loss on hedging transactions (net of tax) | 3 | 2 | 4 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE EARNINGS | 128 | 98 | 230 | 75 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive earnings attributable to noncontrolling interests | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING | $ 128 | $ 98 | $ 230 | $ 75 |
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | $ 326 | $ 106 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Cash paid for property, plant and equipment | (187) | (177) |
Proceeds from the sale of assets or affiliates | 0 | 2 |
Investment in subsidiaries and affiliates, net of cash acquired | (450) | 0 |
Purchases of alloy | 0 | (7) |
Proceeds from sale of alloy | 0 | 7 |
Other | 2 | 0 |
Net cash flow used for investing activities | (635) | (175) |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||
Proceeds from senior revolving credit and receivables securitization facilities | 434 | 819 |
Proceeds from term loan borrowing | 300 | 0 |
Payments on senior revolving credit and receivables securitization facilities | (326) | (634) |
Payments on long-term debt | 0 | (8) |
Net decrease in short-term debt | (6) | (19) |
Cash dividends paid | (40) | (39) |
Purchases of treasury stock | (87) | (47) |
Intercompany dividends paid | 0 | |
Other intercompany loans | 0 | 0 |
Other | 4 | 11 |
Net cash flow provided by financing activities | 279 | 83 |
Effect of exchange rate changes on cash | 1 | (1) |
Net (decrease) increase in cash and cash equivalents | (29) | 13 |
Cash and cash equivalents at beginning of period | 96 | 67 |
Cash and cash equivalents at end of period | 67 | 80 |
Consolidation, Eliminations [Member] | ||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | (11) | 0 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Cash paid for property, plant and equipment | 0 | 0 |
Proceeds from the sale of assets or affiliates | 0 | 0 |
Investment in subsidiaries and affiliates, net of cash acquired | 0 | 0 |
Purchases of alloy | 0 | 0 |
Proceeds from sale of alloy | 0 | 0 |
Other | 0 | 0 |
Net cash flow used for investing activities | 0 | 0 |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||
Proceeds from senior revolving credit and receivables securitization facilities | 0 | 0 |
Proceeds from term loan borrowing | 0 | |
Payments on senior revolving credit and receivables securitization facilities | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Net decrease in short-term debt | 0 | 0 |
Cash dividends paid | 0 | 0 |
Purchases of treasury stock | 0 | 0 |
Intercompany dividends paid | 11 | |
Other intercompany loans | 0 | 0 |
Other | 0 | 0 |
Net cash flow provided by financing activities | 11 | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent Company [Member] | ||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | (59) | (52) |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Cash paid for property, plant and equipment | (10) | (8) |
Proceeds from the sale of assets or affiliates | 0 | 0 |
Investment in subsidiaries and affiliates, net of cash acquired | 0 | 0 |
Purchases of alloy | 0 | 0 |
Proceeds from sale of alloy | 0 | 0 |
Other | 2 | 0 |
Net cash flow used for investing activities | (8) | (8) |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||
Proceeds from senior revolving credit and receivables securitization facilities | 0 | 683 |
Proceeds from term loan borrowing | 300 | |
Payments on senior revolving credit and receivables securitization facilities | 0 | (634) |
Payments on long-term debt | 0 | (5) |
Net decrease in short-term debt | 0 | 0 |
Cash dividends paid | (40) | (39) |
Purchases of treasury stock | (87) | (47) |
Intercompany dividends paid | 0 | |
Other intercompany loans | (110) | 91 |
Other | 4 | 11 |
Net cash flow provided by financing activities | 67 | 60 |
Effect of exchange rate changes on cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Guarantor Subsidiaries [Member] | ||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 225 | 57 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Cash paid for property, plant and equipment | (125) | (123) |
Proceeds from the sale of assets or affiliates | 0 | 0 |
Investment in subsidiaries and affiliates, net of cash acquired | 0 | 0 |
Purchases of alloy | 0 | 0 |
Proceeds from sale of alloy | 0 | 0 |
Other | 0 | 0 |
Net cash flow used for investing activities | (125) | (123) |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||
Proceeds from senior revolving credit and receivables securitization facilities | 0 | 0 |
Proceeds from term loan borrowing | 0 | |
Payments on senior revolving credit and receivables securitization facilities | 0 | 0 |
Payments on long-term debt | 0 | 0 |
Net decrease in short-term debt | 0 | (25) |
Cash dividends paid | 0 | 0 |
Purchases of treasury stock | 0 | 0 |
Intercompany dividends paid | 0 | |
Other intercompany loans | (148) | 95 |
Other | 0 | 0 |
Net cash flow provided by financing activities | (148) | 70 |
Effect of exchange rate changes on cash | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (48) | 4 |
Cash and cash equivalents at beginning of period | 48 | 1 |
Cash and cash equivalents at end of period | 0 | 5 |
Non-Guarantor Subsidiaries [Member] | ||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | ||
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES | 171 | 101 |
NET CASH FLOW USED FOR INVESTING ACTIVITIES | ||
Cash paid for property, plant and equipment | (52) | (46) |
Proceeds from the sale of assets or affiliates | 0 | 2 |
Investment in subsidiaries and affiliates, net of cash acquired | (450) | 0 |
Purchases of alloy | 0 | (7) |
Proceeds from sale of alloy | 0 | 7 |
Other | 0 | 0 |
Net cash flow used for investing activities | (502) | (44) |
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES | ||
Proceeds from senior revolving credit and receivables securitization facilities | 434 | 136 |
Proceeds from term loan borrowing | 0 | |
Payments on senior revolving credit and receivables securitization facilities | (326) | 0 |
Payments on long-term debt | 0 | (3) |
Net decrease in short-term debt | (6) | 6 |
Cash dividends paid | 0 | 0 |
Purchases of treasury stock | 0 | 0 |
Intercompany dividends paid | (11) | |
Other intercompany loans | 258 | (186) |
Other | 0 | 0 |
Net cash flow provided by financing activities | 349 | (47) |
Effect of exchange rate changes on cash | 1 | (1) |
Net (decrease) increase in cash and cash equivalents | 19 | 9 |
Cash and cash equivalents at beginning of period | 48 | 66 |
Cash and cash equivalents at end of period | $ 67 | $ 75 |
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