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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from             to            
Commission File Number:     1-33100
Owens Corning
(Exact name of registrant as specified in its charter)
 
Delaware43-2109021
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
One Owens Corning Parkway,Toledo,OH 43659
(Address of principal executive offices) (Zip Code)
(419) 248-8000
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common Stock, par value $0.01 per shareOCNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes þ             No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Yes þ             No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large Accelerated FilerþAccelerated filer¨
Non-accelerated filer¨Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes            No þ

As of April 22, 2022, 97,078,169 shares of the registrant’s common stock, par value $0.01 per share, were outstanding.


Contents
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.



PART I
ITEM 1. FINANCIAL STATEMENTS
OWENS CORNING AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
(in millions, except per share amounts)
 
Three Months Ended
March 31,
  
  
20222021
NET SALES$2,346 $1,915 
COST OF SALES1,727 1,471 
Gross margin619 444 
OPERATING EXPENSES
Marketing and administrative expenses184 174 
Science and technology expenses23 20 
Other income, net(28)(48)
Total operating expenses179 146 
OPERATING INCOME440 298 
Non-operating income(2)(3)
EARNINGS BEFORE INTEREST AND TAXES442 301 
Interest expense, net28 33 
EARNINGS BEFORE TAXES414 268 
Income tax expense107 59 
Equity in net earnings of affiliates 1 
NET EARNINGS307 210 
Net earnings attributable to noncontrolling interests3  
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING$304 $210 
EARNINGS PER COMMON SHARE ATTRIBUTABLE TO OWENS CORNING COMMON STOCKHOLDERS
Basic$3.06 $1.99 
Diluted$3.03 $1.98 
WEIGHTED AVERAGE COMMON SHARES
Basic99.5 105.4 
Diluted100.2 106.0 
The accompanying Notes to the Consolidated Financial Statements are an integral part of this Statement.


OWENS CORNING AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE EARNINGS
(unaudited)
(in millions)
 
Three Months Ended
March 31,
  
20222021
NET EARNINGS$307 $210 
Other comprehensive income (loss), net of tax:
Currency translation adjustment (net of tax of $0 and $(1) for the three months ended March 31, 2022 and 2021, respectively)(28)(45)
Pension and other postretirement adjustment (net of tax of $(1) and $0 for the three months ended March 31, 2022 and 2021, respectively)3 1 
Hedging adjustment (net of tax of $(8) and $(4) for the three months ended March 31, 2022 and 2021, respectively)24 12 
Total other comprehensive loss, net of tax(1)(32)
COMPREHENSIVE EARNINGS306 178 
Comprehensive earnings attributable to noncontrolling interests2  
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING$304 $178 

The accompanying Notes to the Consolidated Financial Statements are an integral part of this Statement.


OWENS CORNING AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited)
(in millions, except per share amounts)
ASSETSMarch 31,
2022
December 31,
2021
CURRENT ASSETS
Cash and cash equivalents$748 $959 
Receivables, less allowance of $11 and $9 at March 31, 2022 and December 31, 2021, respectively1,395 939 
Inventories1,147 1,078 
Other current assets141 121 
Total current assets3,431 3,097 
Property, plant and equipment, net3,825 3,873 
Operating lease right-of-use assets182 158 
Goodwill983 990 
Intangible assets1,606 1,617 
Deferred income taxes30 31 
Other non-current assets259 249 
TOTAL ASSETS$10,316 $10,015 
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts payable$1,328 $1,095 
Current operating lease liabilities52 49 
Other current liabilities619 553 
Total current liabilities1,999 1,697 
Long-term debt, net of current portion2,959 2,960 
Pension plan liability72 77 
Other employee benefits liability156 157 
Non-current operating lease liabilities131 109 
Deferred income taxes376 376 
Other liabilities258 304 
OWENS CORNING STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.01 per share (a)  
Common stock, par value $0.01 per share (b)1 1 
Additional paid in capital4,091 4,092 
Accumulated earnings2,974 2,706 
Accumulated other comprehensive deficit(581)(581)
Cost of common stock in treasury (c)(2,144)(1,922)
Total Owens Corning stockholders’ equity4,341 4,296 
Noncontrolling interests24 39 
Total equity4,365 4,335 
TOTAL LIABILITIES AND EQUITY$10,316 $10,015 
(a)10 shares authorized; none issued or outstanding at March 31, 2022 and December 31, 2021
(b)400 shares authorized; 135.5 issued and 98.1 outstanding at March 31, 2022; 135.5 issued and 100.4 outstanding at December 31, 2021
(c)37.4 shares at March 31, 2022 and 35.1 shares at December 31, 2021

The accompanying Notes to the Consolidated Financial Statements are an integral part of this Statement.


OWENS CORNING AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
(unaudited)
(in millions)
 Common Stock
Outstanding
Treasury
Stock
APIC (a)Accumulated
Earnings
AOCI (b)NCI (c)Total
  SharesPar ValueSharesCost
Balance at December 31, 2021100.4 $1 35.1 $(1,922)$4,092 $2,706 $(581)$39 $4,335 
Net earnings attributable to Owens Corning— — — — — 304 —  304 
Net earnings attributable to noncontrolling interests— — — — — — — 3 3 
Currency translation adjustment— — — — — — (27)(1)(28)
Pension and other postretirement adjustment (net of tax)— — — — — — 3 — 3 
Deferred gain on hedging transactions (net of tax)— — — — — — 24 — 24 
Purchases of noncontrolling interest— — — — 8 — — (17)(9)
Issuance of common stock under share-based payment plans0.4 — (0.4)21 (21)— — —  
Purchases of treasury stock(2.7)— 2.7 (243)— — — — (243)
Stock-based compensation expense — — — — 12 — — — 12 
Dividends declared (d)— — — — — (36)— — (36)
Balance at March 31, 202298.1 $1 37.4 $(2,144)$4,091 $2,974 $(581)$24 $4,365 



 Common Stock
Outstanding
Treasury
Stock
APIC (a)Accumulated
Earnings
AOCI (b)NCI (c)Total
  SharesPar ValueSharesCost
Balance at December 31, 2020105.6 $1 29.9 $(1,400)$4,059 $1,829 $(588)$40 $3,941 
Net earnings attributable to Owens Corning— — — — — 210 — — 210 
Currency translation adjustment— — — — — — (45)(1)(46)
Pension and other postretirement adjustment (net of tax)— — — — — — 1 — 1 
Deferred gain on hedging transactions (net of tax)— — — — — — 12 — 12 
Issuance of common stock under share-based payment plans0.5 — (0.5)22 (15)— — — 7 
Purchases of treasury stock(1.8)— 1.8 (142)— — — — (142)
Stock-based compensation expense — — — — 12 — — — 12 
Dividends declared (d)— — — — — (28)— — (28)
Balance at March 31, 2021104.3 $1 31.2 $(1,520)$4,056 $2,011 $(620)$39 $3,967 

(a)Additional Paid in Capital ("APIC")
(b)Accumulated Other Comprehensive Earnings (Deficit) (“AOCI”)
(c)Noncontrolling Interest (“NCI”)
(d)Quarterly dividend declarations of $0.35 and $0.26 per share as of March 31, 2022 and March 31, 2021, respectively

The accompanying Notes to the Consolidated Financial Statements are an integral part of this Statement.



OWENS CORNING AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in millions)
 
  
Three Months Ended
March 31,
  
20222021
NET CASH FLOW PROVIDED BY OPERATING ACTIVITIES
Net earnings$307 $210 
Adjustments to reconcile net earnings to cash provided by operating activities:
Depreciation and amortization132 119 
Deferred income taxes3 13 
Provision for pension and other employee benefits liabilities1  
Stock-based compensation expense12 12 
Gains on sale of certain precious metals(4)(20)
Other adjustments to reconcile net earnings to cash provided by operating activities26 14 
Changes in operating assets and liabilities(301)(136)
Pension fund contribution(1)(1)
Payments for other employee benefits liabilities(3)(4)
Other(14)(3)
Net cash flow provided by operating activities158 204 
NET CASH FLOW USED FOR INVESTING ACTIVITIES
Cash paid for property, plant, and equipment(107)(84)
Proceeds from the sale of assets or affiliates10  
Derivative settlements11 (35)
Other(2)(2)
Net cash flow used for investing activities(88)(121)
NET CASH FLOW USED FOR FINANCING ACTIVITIES
Purchases of noncontrolling interest (9) 
Net decrease in short-term debt(5) 
Dividends paid(35)(55)
Purchases of treasury stock(229)(142)
Other(7)3 
Net cash flow used for financing activities(285)(194)
Effect of exchange rate changes on cash4 (1)
Net decrease in cash, cash equivalents, and restricted cash(211)(112)
Cash, cash equivalents and restricted cash at beginning of period966 724 
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD$755 $612 
 
The accompanying Notes to the Consolidated Financial Statements are an integral part of this Statement.



OWENS CORNING AND SUBSIDIARIES
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, 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, 2021 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 Form 10-K for the year ended December 31, 2021 (the "2021 Form 10-K"). Certain reclassifications have been made to the periods presented for 2021 to conform to the classifications used in the periods presented for 2022.
Revenue Recognition

As of December 31, 2021, our contract liability balances (for extended warranties, down payments and deposits, collectively) totaled $76 million, of which $13 million was recognized as revenue in the first three months of 2022. As of March 31, 2022, our contract liability balances totaled $78 million.

As of December 31, 2020, our contract liability balances totaled $66 million, of which $13 million was recognized as revenue in the first three months of 2021. As of March 31, 2021, our contract liability balances totaled $77 million.

Cash, Cash Equivalents and Restricted Cash

On the Consolidated Statements of Cash Flows, the total of Cash, cash equivalents and restricted cash includes restricted cash of $7 million as of March 31, 2022, December 31, 2021, March 31, 2021 and December 31, 2020. Restricted cash primarily represents amounts received from a counterparty related to its performance assurance on an executory contract, which is included in Other current assets on the Consolidated Balance Sheets. These amounts are contractually required to be set aside, and the counterparty can exchange the cash for another form of performance assurance at its discretion.

Related Party Transactions

In the first quarter of 2021, a related party relationship was established as a result of a member of the Company’s Board of Directors being named an executive officer of one of the Company’s preexisting suppliers. The related party transactions with this supplier consist of the purchase of raw materials. Purchases from the related party supplier were $21 million and $20 million for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022 and December 31, 2021, amounts due to the related party supplier were $8 million and $1 million, respectively.

Leases

During the first quarter of 2021, the Company entered into a lease for a warehouse located near our manufacturing facility in Fort Smith, Arkansas that is expected to commence in the second quarter of 2022. The lease is for a to-be-constructed warehouse where the Company will serve as the construction agent for the landlord. At no point during the construction period will the Company control the underlying asset as defined in Accounting Standards Codification (ASC) 842 (Leases). This lease will result in finance lease right-of-use assets and corresponding lease liabilities of approximately $35 million at the time of lease commencement.










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OWENS CORNING AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)

1.    GENERAL (continued)






Accounting Pronouncements

The following table summarizes recent Accounting Standards Updates (ASU's) issued by the Financial Accounting Standards Board (FASB) that had an impact on the Company's Consolidated Financial Statements:
StandardDescriptionEffective Date for CompanyEffect on the
Consolidated Financial Statements
Recently issued standards:
ASU 2021-10 "Government Assistance (Topic 832)"This standard modifies the annual disclosure requirements for business entities that receive government assistance and use a grant or contribution accounting model by analogy to other account guidance.January 1, 2022
We are currently assessing the impact of adopting this standard will have on our Consolidated Financial Statements. The Company will adopt ASU 2021-10 for the year ending December 31, 2022 and will provide the required disclosures, if material.


Table of Contents
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OWENS CORNING AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
2.    SEGMENT INFORMATION
The Company has three reportable segments: Composites, Insulation and Roofing. Accounting policies for the segments are the same as those for the Company. The Company’s three reportable segments are defined as follows:
Composites – 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 fabrics, non-wovens and other specialized products.
Insulation – Within our Insulation segment, the Company manufactures and sells thermal and acoustical batts, loosefill insulation, foam sheathing and accessories. It also manufactures and sells glass fiber pipe insulation, energy efficient flexible duct media, bonded and granulated mineral wool insulation, cellular glass insulation and foam insulation used in above- and below-grade construction applications.
Roofing – Within our Roofing segment, the Company manufactures and sells residential roofing shingles, oxidized asphalt materials, roofing components used in residential and commercial construction and specialty applications, and synthetic packaging materials.
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, 2022
Reportable SegmentsCompositesInsulationRoofingEliminationsConsolidated
Disaggregation Categories
U.S. residential$87 $351 $776 $(60)$1,154 
U.S. commercial and industrial210 179 27 (3)413 
Total United States297 530 803 (63)1,567 
Europe205 197 6 (2)406 
Asia-Pacific151 35 2  188 
Rest of world61 97 27  185 
NET SALES$714 $859 $838 $(65)$2,346 
For the three months ended March 31, 2021
Reportable SegmentsCompositesInsulationRoofingEliminationsConsolidated
Disaggregation Categories
U.S. residential$75 $263 $659 $(55)$942 
U.S. commercial and industrial146 162 22  330 
Total United States221 425 681 (55)1,272 
Europe159 153 3  315 
Asia-Pacific138 36 3  177 
Rest of world41 86 24  151 
NET SALES$559 $700 $711 $(55)$1,915 



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OWENS CORNING AND SUBSIDIARIES
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,
  
20222021
Reportable Segments
Composites$154 $79 
Insulation129 82 
Roofing176 156 
Total reportable segments459 317 
Restructuring costs(6)(1)
Gain on sale of Shanghai, China facility27  
Gains on sale of certain precious metals4 20 
General corporate expense and other(42)(35)
Total corporate, other and eliminations(17)(16)
EBIT$442 $301 


3.    INVENTORIES
Inventories consist of the following (in millions):
March 31, 2022December 31, 2021
Finished goods$715 $672 
Materials and supplies432 406 
Total inventories$1,147 $1,078 



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OWENS CORNING AND SUBSIDIARIES
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, 2022 and December 31, 2021, 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, cross-currency swaps, foreign exchange forward contracts and U.S. treasury rate lock agreements, 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 derivatives. The models use Level 2 inputs, such as forward curves and other commonly quoted observable transactions and prices. The fair value of our derivatives and hedging instruments are all classified as Level 2 investments within the three-tier hierarchy.

The following table presents the fair value of derivatives and hedging instruments and the respective location on the Consolidated Balance Sheets (in millions):
  Fair Value at
 LocationMarch 31, 2022December 31, 2021
Derivative assets designated as hedging instruments:
Net investment hedges:
       Cross-currency swapsOther current assets$5 $5 
       Cross-currency swapsOther non-current assets$2 $1 
Cash flow hedges:
Natural gas forward swapsOther current assets$35 $16 
Treasury interest rate lockOther current assets$21 $11 
Derivative liabilities designated as hedging instruments:
Net investment hedges:
       Cross-currency swapsOther liabilities$ $1 
Cash flow hedges:
Natural gas forward swapsOther current liabilities$ $5 
Foreign exchange forward contractsOther current liabilities$1 $2 
Derivative assets not designated as hedging instruments:
Foreign exchange forward contractsOther current assets$1 $1 
Derivative liabilities not designated as hedging instruments:
Foreign exchange forward contractsOther current liabilities$8 $6 


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OWENS CORNING AND SUBSIDIARIES
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,
  
Location20222021
Derivative activity designated as hedging instruments:
Natural gas cash flow hedges:
Amount of gain reclassified from AOCI (as defined below) into earnings (a)Cost of sales$(10)$(1)
Cross-currency swap net investment hedges:
Amount of gain recognized in earnings on derivative amounts excluded from effectiveness testingInterest expense, net$(1)$(1)
Derivative activity not designated as hedging instruments:
Foreign currency:
Amount of gain recognized in earnings (b)Other income, net$(5)$(20)
(a)Accumulated Other Comprehensive Earnings (Deficit) ("AOCI")
(b)Gains related to foreign currency derivatives were substantially offset by net revaluation impacts on foreign currency denominated balance sheet exposures, which were also recorded in Other income, net. Please refer to the "Other Derivatives" section below for additional detail.

Consolidated Statements of Comprehensive Earnings Activity

The following table presents the impact of derivative activities on the Consolidated Statements of Comprehensive Earnings (in millions):
Amount of Gain Recognized in Comprehensive Earnings
Three Months Ended
March 31,
Hedging TypeDerivative Financial Instrument20222021
Net investment hedgeCross-currency swaps$(2)$(5)
Cash flow hedgeNatural gas forward swaps$(23)$(4)
Cash flow hedgeTreasury interest rate lock$(10)$(15)
Cash Flow Hedges
The Company uses a combination of derivative financial instruments, which qualify as cash flow hedges, and physical contracts to manage forecasted exposure to electricity and natural gas prices. As of March 31, 2022, the notional amounts of these natural gas forward swaps was 8 million MMBtu (or MMBtu equivalent) based on U.S. and European indices.
In March 2020, the Company entered into a $175 million forward U.S. Treasury rate lock agreement to manage the U.S. Treasury portion of its interest rate risk associated with the anticipated issuance of certain 10-year fixed rate senior notes before the end of 2022. The Company intends to cash settle this agreement upon a future issuance of certain senior notes thereby effectively locking in the U.S. Treasury fixed interest rate in effect at the time the agreement was initiated. The locked fixed rate of this agreement is 0.994%. The Company has designated this outstanding forward U.S. Treasury rate lock agreement, which expires on December 15, 2022, as a cash flow hedge.


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OWENS CORNING AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)

4.    DERIVATIVE FINANCIAL INSTRUMENTS (continued)

In June 2021, the Company entered into five currency forward contracts with unrelated counterparties totaling $23 million to mitigate against unwanted or anticipated moves in the European Euro exchange rate against the U.S. Dollar, pertaining to forecasted Euro denominated invoices for capital expenditures. The Company has designated each of the individual contracts as cash flow hedges, with the last hedge maturing no later than December 2023.
Net Investment Hedges
The Company has translation exposure resulting from translating the financial statements of foreign subsidiaries into U.S. Dollars, which is recognized in Currency translation adjustment (a component of AOCI). The Company uses cross-currency forward contracts to hedge portions of the net investment in foreign subsidiaries against fluctuations in foreign exchange rates. As of March 31, 2022, the notional amount of these derivative financial instruments was $218 million related to the U.S. Dollar and European Euro.
Other Derivatives
The Company uses forward currency exchange contracts to manage existing exposures to foreign exchange risk related to assets and liabilities recorded on the Consolidated Balance Sheets. As of March 31, 2022, the Company had notional amounts of $720 million for non-designated derivative financial instruments related to foreign currency exposures in U.S. Dollars primarily related to Brazilian Real, Chinese Yuan, European Euro, Hong Kong Dollar, Indian Rupee, and South Korean Won. In addition, the Company had notional amounts of $7 million for non-designated derivative financial instruments related to foreign currency exposures in European Euro primarily related to the Polish Złoty.



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OWENS CORNING AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)
5.     GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill

The Company tests goodwill and indefinite-lived intangible assets for impairment during the fourth quarter of each year, or more frequently should circumstances change or events occur that would more likely than not reduce the fair value of a reporting unit below its carrying value.

No testing was deemed necessary in the first three months of 2022. The changes in the net carrying value of goodwill by segment are as follows (in millions):
CompositesInsulationRoofingTotal
Gross carrying amount at December 31, 2021
$75 $1,481 $397 $1,953 
Foreign Currency Translation(1)(15)(1)(17)
Gross carrying amount at March 31, 2022
74 1,466 396 1,936 
Accumulated impairment losses at December 31, 2021
 (963) (963)
Foreign Currency Translation 10  10 
Accumulated impairment losses at March 31, 2022
 (953) (953)
Balance, net of impairment, at March 31, 2022
$74 $513 $396 $983 
Other Intangible Assets
The Company amortizes the cost of other intangible assets over their estimated useful lives which, individually, range up to 45 years. The Company's future cash flows are not materially impacted by its ability to extend or renew agreements related to its amortizable intangible assets.
Other intangible assets consist of the following (in millions):
March 31, 2022December 31, 2021
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Gross
Carrying
Amount
Accumulated
Amortization
Net
Carrying
Amount
Trademarks and trade names$1,091 $— $1,091 $1,096 $— $1,096 
Customer relationships552 (223)329 559 (218)341 
Technology296 (172)124 298 (168)130 
Other (a)66 (4)62 53 (3)50 
Total other intangible assets$2,005 $(399)$1,606 $2,006 $(389)$1,617 
(a)Other primarily includes emissions and quarry rights.
Amortization expense for intangible assets for the three months ended March 31, 2022 and 2021 was $11 million and $12 million, respectively. Amortization expense for intangible assets is estimated to be $35 million for the remainder of 2022.


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OWENS CORNING AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(unaudited)

5.     GOODWILL AND OTHER INTANGIBLE ASSETS (continued)

The estimated amortization expense for intangible assets for the next five fiscal years ended December 31 is as follows (in millions):
PeriodAmortization
2023$43 
2024$40 
2025$40 
2026$37 
2027$29 

6.    PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment consist of the following (in millions):
March 31,
2022
December 31, 2021
Land$219 $219 
Buildings and leasehold improvements1,273 1,265 
Machinery and equipment5,362 5,343 
Construction in progress358 387 
7,212 7,214 
Accumulated depreciation(3,387)