Company: OC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001370946-25-000205
Chunk: 133

Company: Owens Corning
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 133
---
 strategy to reshape the Company to focus on residential and commercial building products in North America and Europe. The transaction includes six insulation manufacturing facilities in China and a roofing manufacturing facility in Korea. The building materials business, within the Insulation segment, represents annual revenues of approximately $130 million.During the fourth quarter of 2024, the Company reclassified $2 million as held for sale within Other current liabilities on the Consolidated Balance Sheets. The Company also recorded the assets at the fair value less cost to sell, which was less than the carrying value and resulted in an impairment of $91 million primarily related to Property, Plant and Equipment and Goodwill. The impairment was included in Loss on sale of business on the Consolidated Statements of Earnings within the Company's 2024 Form 10-K. The Company estimated the fair value of these assets, less cost to sell, using Level 3 inputs.During the three and six months ended June 30, 2025, the Company incurred an additional loss of $24 million and $26 million as a result of amendments to the related party agreement and changes in working capital. This loss is included within Loss on sale of business on the Consolidated Statements of Earnings. These changes also resulted in an adjustment of $4 million as held for sale within Other current liabilities on the Consolidated Balance Sheets. The Company completed the transaction on July 22, 2025. The Company is currently in the process of finalizing certain related transfers, which are expected to be completed by the end of the first quarter of fiscal year 2026.

10.    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. Please refer to Note 1 of the Consolidated Financial Statements within our 2024 Form 10-K for information about our separately-priced extended warranty contracts. A reconciliation of the warranty liability is as follows:Six Months Ended June 30,(In millions)20252024Beginning balance$99 $97 Amounts accrued for current year12 10 Acquired obligations— 4 Settlements of warranty claims(14)(11)Ending balance$97 $100 

26

Table of ContentsOWENS CORNING AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)(unaudited)

11.    RESTRUCTURING

The Company may incur restructuring, and other exit costs in connection