Owens Corning
For the period ended Dec 31, 2025. Filed Feb 25, 2026.
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FY2025 · Filed Feb 25, 2026
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10. Leases
- LEASES
On February 13, 2025, the Company entered into the GR Agreement for the sale of our global GR business. In connection with the GR Agreement, some leases will be transferring at the time of sale. The related portions of assets, liabilities and costs are identified as discontinued operations.
Balance Sheet Classification
The table below presents the lease-related assets and liabilities recorded on the balance sheet. This table discloses balances related to both continuing and discontinued operations, and their respective locations on the Consolidated Balance Sheets:
| (In millions) | December 31, | |||
|---|---|---|---|---|
| Leases · Location · 2025 · 2024 | ||||
| Assets | ||||
| Operating lease assets for continuing operations | Operating lease right-of-use assets | $507 | $411 | |
| Operating lease assets for discontinued operations | Non-current assets of discontinued operations | 16 | 3 | |
| Finance lease assets for continuing operations | Other non-current assets | 291 | 259 | |
| Finance lease assets for discontinued operations | Non-current assets of discontinued operations | 47 | 51 | |
| Total lease assets | $861 | $724 | ||
| Liabilities | ||||
| Current | ||||
| Operating lease liabilities for continuing operations | Current operating lease liabilities | $83 | $83 | |
| Operating lease liabilities for discontinued operations | Current liabilities of discontinued operations | 5 | 4 | |
| Finance lease liabilities for continuing operations | Long-term debt - current portion | 36 | 32 | |
| Finance lease liabilities for discontinued operations | Current liabilities of discontinued operations | 6 | 6 | |
| Non-current | ||||
| Operating lease liabilities for continuing operations | Non-current operating lease liabilities | 450 | 348 | |
| Operating lease liabilities for discontinued operations | Non-current liabilities of discontinued operations | 33 | 27 | |
| Finance lease liabilities for continuing operations | Long-term debt, net of current portion | 273 | 236 | |
| Finance lease liabilities for discontinued operations | Non-current liabilities of discontinued operations | 36 | 48 | |
| Total lease liabilities | $922 | $784 | ||
Lease Costs
The table below presents lease-related costs for both continuing and discontinued operations:
| Twelve Months Ended December 31, | |||
|---|---|---|---|
| (In millions) | 2025 | 2024 | 2023 |
| Operating lease cost | $124 | $103 | $81 |
| Finance lease cost | |||
| Amortization of right-of-use assets | $43 | $45 | $35 |
| Interest on lease liabilities | $17 | $11 | $6 |
| Short-term lease cost | $9 | $8 | $6 |
| Variable lease cost | $14 | $11 | $8 |
Operating lease cost for discontinued operations in 2025, 2024, and 2023 was $7 million, $5 million and $7 million, respectively. There wasno finance lease cost related to amortization of right-of-use assets for discontinued operations in 2025, due to the classification as discontinued operations on January 1, 2025. Finance lease cost related to amortization of right-of-use assets for discontinued operations in 2024, and 2023 was $5 million and $4 million, respectively. Finance lease cost related to interest on lease liabilities for discontinued operations in 2025, 2024, and 2023 was $2 million, $2 million and $1 million, respectively.
The tables below present supplemental information related to leases for both continuing and discontinued operations:
| December 31, | |||
|---|---|---|---|
| Weighted-average remaining lease term (years) | 2025 | 2024 | 2023 |
| Operating leases | 8.2 | 8.2 | 4.6 |
| Finance leases | 12.9 | 13.6 | 9.5 |
| December 31, | |||
|---|---|---|---|
| Weighted-average discount rate | 2025 | 2024 | 2023 |
| Operating leases | 5.33% | 5.22% | 3.79% |
| Finance leases | 4.94% | 4.88% | 4.02% |
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, 2025:
| ContinuingOperations · DiscontinuedOperations | ||||
|---|---|---|---|---|
| (In millions) | Operating Leases | Finance Leases | Operating Leases | Finance Leases |
| Fiscal Year: | ||||
| 2026 | $110 | $52 | $6 | $8 |
| 2027 | 99 | 45 | 5 | 7 |
| 2028 | 89 | 40 | 4 | 6 |
| 2029 | 74 | 29 | 4 | 5 |
| 2030 | 54 | 24 | 4 | 4 |
| 2031 and beyond | 237 | 240 | 26 | 24 |
| Total minimum lease payments | 663 | 430 | 49 | 54 |
| Less: implied interest | 130 | 121 | 11 | 12 |
| Present value of future minimum lease payments | 533 | 309 | 38 | 42 |
| Less: current lease obligations | 83 | 36 | 5 | 6 |
| Long-term lease obligations | $450 | $273 | $33 | $36 |
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