Owens Corning Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Owens Corning has filed its Q1 2024 10-Q report detailing financial positions and segment information.</b>

AI Summary

Owens Corning (OC) filed a Quarterly Report (10-Q) with the SEC on April 24, 2024. Owens Corning filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's principal business address is One Owens Corning Parkway, Toledo, OH 43659. The filing includes data related to common stock, treasury stock, additional paid-in capital, retained earnings, accumulated other comprehensive income, and noncontrolling interest as of various dates in 2023 and 2024. Specific segments mentioned include Composites, Roofing, and Global Glass Reinforcements (GR).

Why It Matters

For investors and stakeholders tracking Owens Corning, this filing contains several important signals. This 10-Q provides a detailed look at Owens Corning's financial health and operational segments for the first quarter of 2024, crucial for investors assessing performance and future outlook. The inclusion of segment-specific data allows for a granular analysis of revenue drivers and business unit performance within the broader company structure.

Risk Assessment

Risk Level: low — Owens Corning shows low risk based on this filing. The filing is a standard quarterly report (10-Q) and does not contain significant new disclosures or immediate financial distress indicators.

Analyst Insight

Review the segment-specific financial data within the 10-Q to understand performance trends in Composites, Roofing, and Global Glass Reinforcements.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Report Period End Date (Conformed Period of Report)
• 2024-04-24 — Filing Date (Filed As Of Date)
• 2024-01-01 — Quarter Start Date (Fiscal Period)
• 2023-03-31 — Prior Year Quarter End Date (Comparative Period)

Key Players & Entities

• Owens Corning (company) — Filer
• Toledo, OH (location) — Business Address City, State
• 1934 Act (regulation) — SEC Act
• 001-33100 (other) — SEC File Number

FAQ

Industry Context

Owens Corning operates in the building materials and insulation industry, focusing on composite materials, roofing, and insulation products.

Regulatory Implications

The filing is a standard 10-Q, adhering to SEC regulations for quarterly financial reporting under the Securities Exchange Act of 1934.

What Investors Should Do

1. Analyze the detailed financial statements and footnotes within the 10-Q for a comprehensive understanding of the company's financial position.
2. Examine the segment information to identify growth drivers and potential challenges in the Composites and Roofing businesses.
3. Compare the Q1 2024 results with prior periods to assess performance trends and year-over-year changes.

Key Dates

• 2024-03-31: Quarter End Date — End of reporting period for the 10-Q.
• 2024-04-24: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-Q filing for the fiscal year 2024, providing the first quarterly update after the year-end 10-K.

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share OC New York Stock Exchange

Filing Documents

• oc-20240331.htm (10-Q) — 1441KB
• oc-2024x03x31x10qxexh101.htm (EX-10.1) — 1272KB
• oc-2024x03x31x10qxexh102.htm (EX-10.2) — 1054KB
• oc-2024x03x31x10qxexh103.htm (EX-10.3) — 277KB
• oc-2024x03x31x10qxexh104.htm (EX-10.4) — 57KB
• oc-2024x03x31x10qxexh105.htm (EX-10.5) — 995KB
• oc-2024x03x31x10qxexh106.htm (EX-10.6) — 21KB
• oc-2024x03x31x10qxexh107.htm (EX-10.7) — 76KB
• oc-2024x03x31x10qxexh108.htm (EX-10.8) — 76KB
• oc-2024x03x31x10qxexh109.htm (EX-10.9) — 77KB
• oc-2024x03x31x10qxexh1010.htm (EX-10.10) — 71KB
• oc-2024x03x31x10qxexh311.htm (EX-31.1) — 9KB
• oc-2024x03x31x10qxexh312.htm (EX-31.2) — 9KB
• oc-2024x03x31x10qxexh321.htm (EX-32.1) — 3KB
• oc-2024x03x31x10qxexh322.htm (EX-32.2) — 3KB
• 0001370946-24-000129.txt (&nbsp;) — 12946KB
• oc-20240331.xsd (EX-101.SCH) — 53KB
• oc-20240331_cal.xml (EX-101.CAL) — 70KB
• oc-20240331_def.xml (EX-101.DEF) — 303KB
• oc-20240331_lab.xml (EX-101.LAB) — 714KB
• oc-20240331_pre.xml (EX-101.PRE) — 510KB
• oc-20240331_htm.xml (XML) — 1277KB

– FINANCIAL INFORMATION (unaudited)

PART I – FINANCIAL INFORMATION (unaudited)

Financial Statements

Item 1. Financial Statements Consolidated Statements of Earning s 4 Consolidated Statements of Comprehensive Earnings 5 Consolidated Balance Sheets 6 Consolidated Statements of Stockholders ' Equity 7 Consolidated Statements of Cash Flows 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 1. General 9 2. Segment Information 11 3. Inventories 12 4. Derivative Financial Instruments 13 5. Goodwill and Other Intangible Assets 15 6. Property, Plant and Equipment 17 7. Divestitures 17 8. Warranties 17 9. Restructuring, Acquisition and Divestiture-Related Costs 18 10. Debt 21 1 1 . Pension Plans and Other Postretirement Benefits 24 1 2 . Contingent Liabilities and Other Matters 25 1 3 . Stock Compensation 27 1 4 . Earnings per Share 30 1 5 . Income Taxes 30 1 6 . Changes in Accumulated Other Comprehensive Deficit 31

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 32

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 44

Controls and Procedures

Item 4. Controls and Procedures 44

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 45

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 45

Other Information

Item 5. Other Information 46

Exhibits

Item 6. Exhibits 47

Signatures

Signatures 48 Table of Contents - 4 - PART I

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS OWENS CORNING AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS (unaudited) (in millions, except per share amounts) Three Months Ended March 31, 2024 2023 NET SALES $ 2,300 $ 2,331 COST OF SALES 1,620 1,742 Gross margin 680 589 OPERATING EXPENSES Marketing and administrative expenses 212 204 Science and technology expenses 31 28 Gain on sale of site — ( 189 ) Other expense, net 34 12 Total operating expenses 277 55 OPERATING INCOME 403 534 Non-operating expense — — EARNINGS BEFORE INTEREST AND TAXES 403 534 Interest expense, net 17 22 EARNINGS BEFORE TAXES 386 512 Income tax expense 88 130 NET EARNINGS 298 382 Net loss attributable to non-redeemable and redeemable noncontrolling interests ( 1 ) ( 1 ) NET EARNINGS ATTRIBUTABLE TO OWENS CORNING $ 299 $ 383 EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS Basic $ 3.42 $ 4.19 Diluted $ 3.40 $ 4.17 WEIGHTED AVERAGE COMMON SHARES Basic 87.3 91.3 Diluted 87.9 91.9 The accompanying Notes to the Consolidated Financial Statements are an integral part of these Statements. Table of Contents - 5 - OWENS CORNING AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS (unaudited) (in millions) Three Months Ended March 31, 2024 2023 NET EARNINGS $ 298 $ 382 Other comprehensive (loss) income, net of tax: Currency translation adjustment (net of tax of $ 0 and $ 0 for the three months ended March 31, 2024 and 2023, respectively) ( 42 ) 31 Pension and other postretirement adjustment (net of tax of $ 0 and $ 0 for the three months ended March 31, 2024 and 2023, respectively) — ( 1 ) Hedging adjustment (net of tax of $( 2 ) and $ 0 for the three months ended March 31, 2024 and 2023, respectively) 5 ( 1 ) Total other comprehensive (loss) income, net of tax ( 37 ) 29 COMPREHENSIVE EARNINGS 261 411 Comprehensive loss attributable to non-redeemable and redeemable noncontrolling interests ( 2 ) ( 1 ) COMPREHEN

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 1. 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 ("SEC"), 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, 2023 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 Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Form 10-K"). Certain reclassifications have been made to the periods presented for 2023 to conform to the classifications used in the periods presented for 2024. Revenue Recognition As of December 31, 2023, our contract liability balances (for extended warranties, down payments and deposits, collectively) totaled $ 101 million, of which $ 15 million was recognized as revenue in the first three months of 2024. As of March 31, 2024, our contract liability balances totaled $ 101 million. As of December 31, 2022, our contract liability balances totaled $ 89 million, of which $ 14 million was recognized as revenue in the first three months of 2023. As of March 31, 2023, our contract liability balances totaled $ 89 million. Cash, Cash Equivalents and Restricted Cash On the Consolidated Statements of Cash Flows, the total of Cash, cash equivalents

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) 1. GENERAL (continued) The obligations are presented as Accounts payable within Total current liabilities on the Consolidated Balance Sheets and all activity related to the obligations is presented within operating activities on the Consolidated Statements of Cash Flow. The Company's confirmed outstanding obligations under the Programs totaled $ 173 million and $ 211 million as of March 31, 2024 and December 31, 2023, respectively. The amounts of invoices paid under the Programs totaled $ 136 million and $ 158 million for the three months ended March 31, 2024 and March 31, 2023, respectively. Strategic Actions On February 8, 2024, the Company entered into a definitive agreement to purchase all of the outstanding shares of Masonite International Corporation ("Masonite"). The purchase price for the acquisition of Masonite is approximately $ 3.9 billion, inclusive of acquired debt, which the Company expects to fund with cash on hand and new committed financing. Masonite is a leading global designer, manufacturer, marketer and distributor of interior and exterior doors and door systems for the new construction and repair, renovation and remodeling sectors of the residential and non-residential building construction markets. The transaction was unanimously approved by the board of directors of both companies and is expected to close mid-2024, subject to regulatory and other customary closing conditions, including the approval of Masonite shareholders. During the first three months of 2024, the Company incurred $ 18 million of transaction costs related to its announced acquisition of Masonite. On February 9, 2024, the Company announced the decision to review strategic alternatives for its global glass reinforcements ("GR") business, consistent with our strategy to focus on building and construction materials. The GR business, which operates within our Composites segment, supplies a wide variet

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) 2. SEGMENT INFORMATION The Company has three reportable segments: Roofing, Insulation and Composites. Accounting policies for the segments are the same as those for the Company. The Company's three reportable segments are defined as follows: Roofing – Within our Roofing segment, the Company manufactures and sells residential roofing shingles, oxidized asphalt materials, and roofing components used in residential and commercial construction and specialty applications. Insulation – Within our Insulation segment, the Company manufactures and sells thermal and acoustical batts, loose fill insulation, spray foam insulation, foam sheathing and accessories. It also manufactures and sells glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated stone wool insulation, cellular glass insulation, and foam insulation used in above- and below-grade construction applications. Composites – Within our Composites segment, the Company manufactures, fabricates and sells glass reinforcements in the form of fiber. Glass reinforcement materials are also used by the Composites segment to manufacture and sell high value applications in the form of non-wovens, fabrics and composite lumber. NET SALES The following tables show a disaggregation of our Net sales by segment and geographic region (in millions). Corporate eliminations (shown below) largely reflect intercompany sales from Composites to Roofing. External customer sales are attributed to geographic region based upon the location from which the product is sold to the external customer. For the three months ended March 31, 2024 Reportable Segments Roofing Insulation Composites Eliminations Consolidated Disaggregation Categories U.S. residential $ 923 $ 379 $ 117 $ ( 80 ) $ 1,339 U.S. commercial and industrial 20 202 168 ( 3 ) 387 Total United States 943 581 285 ( 83 ) 1,726 Europe — 176 121 ( 1 ) 296 Asia-Pacific —

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) 2. SEGMENT INFORMATION (continued) EARNINGS BEFORE INTEREST AND TAXES Earnings before interest and taxes ("EBIT") by segment consist of net sales less related costs and expenses, and are presented on a basis that is used internally for evaluating segment performance. Certain items, such as general corporate expenses or income and certain other expense or income items, are excluded from the internal evaluation of segment performance. Accordingly, these items are not reflected in EBIT for our reportable segments and are included within Corporate, Other and Eliminations. The following table summarizes EBIT by segment (in millions): Three Months Ended March 31, 2024 2023 Reportable Segments Roofing $ 286 $ 209 Insulation 161 156 Composites 46 49 Total reportable segments 493 414 Restructuring costs ( 14 ) ( 18 ) Gain on sale of Santa Clara, California site — 189 Gains on sale of certain precious metals — 2 Strategic review-related charges ( 2 ) — Paroc marine recall ( 1 ) — Acquisition-related costs ( 18 ) — General corporate expense and other ( 55 ) ( 53 ) Total corporate, other and eliminations ( 90 ) 120 EBIT $ 403 $ 534 3. INVENTORIES Inventories consist of the following (in millions): March 31, 2024 December 31, 2023 Finished goods $ 747 $ 742 Materials and supplies 458 456 Total inventories $ 1,205 $ 1,198 Table of Contents - 13 - OWENS CORNING AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) 4. DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to, among other risks, the impact of changes in commodity prices, foreign currency exchange rates, and interest rates in the normal course of business. The Company's risk management program is designed to manage the exposure and volatility arising from these risks, and utilizes derivative financial instruments to offset a portion of these risks. The Company uses derivative financial instruments only to the extent necessary to hedge identified business risks, and does not enter into such transactions for trading purposes. The Company generally does not require collateral or other security with counterparties to these financial instruments and is therefore subject to credit risk in the event of nonperformance; however, the Company monitors credit risk and currently does not anticipate nonperformance by other parties. Contracts with counterparties generally contain right of offset provisions. These provisions effectively reduce the Company's exposure to credit risk in situations where the Company has gain and loss positions outstanding with a single counterparty. It is the Company's policy to offset on the Consolidated Balance Sheets the amounts recognized for derivative instruments with any cash collateral arising from derivative instruments executed with the same counterparty under a master netting agreement. As of March 31, 2024 and December 31, 2023, the Company did not have any amounts on deposit with any of its counterparties, nor did any of its counterparties have any amounts on deposit with the Company. Derivative Fair Values Our derivatives consist of natural gas forward swaps 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 deri

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) (unaudited) 4. DERIVATIVE FINANCIAL INSTRUMENTS (continued) Consolidated Statements of Earnings Activity The following table presents the impact and respective location of derivative activities on the Consolidated Statements of Earnings (in millions): Three Months Ended March 31, Location 2024 2023 Derivative activity designated as hedging instruments: Natural gas cash flow hedges: Amount of loss reclassified from AOCI (as defined below) into earnings (a) Cost of sales $ 9 $ 18 Derivative activity not designated as hedging instruments: Foreign currency: Amount of (gain) loss recognized in earnings (b) Other expense, net $ ( 1 ) $ 6 (a) Accumulated Other Comprehensive E

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