Owens Corning
For the period ended Dec 31, 2024. Filed Feb 24, 2025.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2024 · Filed Feb 24, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
10. Leases
- LEASES
Balance Sheet Classification
The table below presents the lease-related assets and liabilities recorded on the balance sheet:
| (In millions) | December 31, | ||
|---|---|---|---|
| Leases | Classification on Balance Sheet | 2024 | 2023 |
| Assets | |||
| Operating lease assets | Operating lease right-of-use assets | $414 | $222 |
| Finance lease assets | Other non-current assets | 310 | 149 |
| Total lease assets | $724 | $371 | |
| Liabilities | |||
| Current | |||
| Operating | Current operating lease liabilities | $87 | $62 |
| Finance | Long-term debt – current portion | 38 | 32 |
| Non-current | |||
| Operating | Non-current operating lease liabilities | 375 | 165 |
| Finance | Long-term debt, net of current portion | 284 | 122 |
| Total lease liabilities | $784 | $381 | |
During the fourth quarter of 2024, the Company determined that certain asset groups should be tested for recoverability, primarily as a result of the progression of the strategic review of the glass reinforcements business. Recoverability of the long-lived assets was measured by comparing the carrying amount of the asset groups to the future net undiscounted cash flows expected to be generated by the asset groups. Specifically for the glass reinforcements asset group, the Company used an undiscounted cash flow model giving consideration to probability weighted cash flows of differing outcomes of the strategic review. The comparison indicated that one of the asset groups, the glass reinforcements asset group, was not recoverable.
Fair value of the glass reinforcements asset group was calculated using a discounted cash flow model and market information obtained through the strategic review to estimate the fair value of the asset group, with weighting applied. As a result of the analysis performed, the Company recorded pre-tax asset impairment charges for the amount by which the carrying value exceeded its fair value of $483 million for the year ended December 31, 2024 which is included in Impairment due to strategic review on the Consolidated Statements of Earnings. These charges include $439 million related to property, plant and equipment, $30 million related to operating lease right-of-use assets and $14 million related to definite-lived intangible assets.
The primary assumption used in the fair value analysis was the weighting of the discounted cash flow model and market information. The fair value measurements are classified as Level 3 within the fair value hierarchy as defined in ASC 820, "Fair Value Measurement" due to the unobservable inputs used.
Lease Costs
The table below presents lease-related costs:
| Twelve Months Ended December 31, | |||
|---|---|---|---|
| (In millions) | 2024 | 2023 | 2022 |
| Operating lease cost | $103 | $81 | $67 |
| Finance lease cost | |||
| Amortization of right-of-use asset | $45 | $35 | $30 |
| Interest on lease liabilities | $11 | $6 | $4 |
| Short-term lease cost | $8 | $6 | $12 |
| Variable lease cost | $11 | $8 | $6 |
- LEASES (continued)
The tables below present supplemental information related to leases:
| December 31, | |||
|---|---|---|---|
| Weighted-average remaining lease term (years) | 2024 | 2023 | 2022 |
| Operating leases | 8.2 | 4.6 | 4.8 |
| Finance leases | 13.6 | 9.5 | 9.6 |
| December 31, | |||
|---|---|---|---|
| Weighted-average discount rate | 2024 | 2023 | 2022 |
| Operating leases | 5.22% | 3.79% | 3.32% |
| Finance leases | 4.88% | 4.02% | 3.46% |
Maturities of Lease Liabilities
The table below reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet as of December 31, 2024:
| (In millions) | Operating Leases | Finance Leases |
|---|---|---|
| Fiscal Year: | ||
| 2025 | $108 | $54 |
| 2026 | 86 | 46 |
| 2027 | 70 | 38 |
| 2028 | 60 | 33 |
| 2029 | 47 | 25 |
| 2030 and beyond | 209 | 267 |
| Total minimum lease payments | 580 | 463 |
| Less: implied interest | 118 | 141 |
| Present value of future minimum lease payments | 462 | 322 |
| Less: current lease obligations | 87 | 38 |
| Long-term lease obligations | $375 | $284 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.