Company: OC
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001370946-25-000077
Chunk: 392

Company: Owens Corning
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 392
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.    LEASES

Balance Sheet ClassificationThe table below presents the lease-related assets and liabilities recorded on the balance sheet:(In millions)December 31, LeasesClassification on Balance Sheet20242023AssetsOperating lease assetsOperating lease right-of-use assets$414 $222 Finance lease assetsOther non-current assets310 149 Total lease assets$724 $371 LiabilitiesCurrentOperatingCurrent operating lease liabilities$87 $62 FinanceLong-term debt – current portion38 32 Non-currentOperatingNon-current operating lease liabilities375 165 FinanceLong-term debt, net of current portion284 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 CostsThe table below presents lease-related costs: Twelve Months Ended December 31,(In millions)202420232022Operating lease cost$103 $81 $67 Finance lease costAmortization of right-of-use asset$45 $35