Commitments and contingencies

6 Months Ended

Jun. 30, 2025

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

Commitments

In the ordinary course of business, the Company enters into purchase commitments for goods and services

including various products and capital expenditures for property, plant and equipment. The Company had purchase

commitments for capital expenditures of $263 million and other contractual commitments for products and

intangibles of $711 million as of June 30, 2025.

Contingencies

In the ordinary course of conducting its business activities, the Company is involved in judicial,

administrative and regulatory investigations and proceedings, as well as lawsuits and claims of various natures,

involving both private parties and governmental authorities, relating to product liability, general and commercial

liability, competition, environmental, employment, health and safety and other matters. These claims and

proceedings include insured, self-insured, and uninsured matters that are brought on an individual, collective,

representative and class-action basis.

The Company records a liability for contingencies when the incurrence of a loss is probable and the amount

can be reasonably estimated, and records legal fees as incurred. If a range of amounts can be reasonably estimated

and no amount within the range is a better estimate than any other amount, then the minimum of the range is

accrued. The Company does not accrue liabilities when the likelihood that the liability has been incurred is probable

but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or

remote. For contingencies where an unfavorable outcome is probable or reasonably possible and which are material,

the Company discloses the nature of the contingency and, where an estimate can reasonably be made, an estimate of

the possible loss. Accruals are based on the best information available, but in certain situations, management is

unable to estimate an amount or range of a reasonably possible loss, including, but not limited to, when: (1) the

damages are indeterminate, (2) the proceedings are in the early stages, (3) numerous parties are involved, or (4) the

matter involves novel or unsettled legal theories.

The aggregate range of reasonably possible losses in excess of accrued liabilities, if any, associated with

these unresolved legal actions is not material. In some cases, the Company cannot reasonably estimate a range of

loss because there is insufficient information regarding the matter. Although it is not possible to predict with

certainty the outcome of these unresolved legal actions, the Company believes that these actions will not

individually or in the aggregate have a material adverse effect on our consolidated results of operations, financial

position or liquidity.

The Company provides standard warranties on many of its products within the Building Envelope segment.

The liability for standard warranty programs is included in Other current liabilities and Other noncurrent liabilities.

The change in the standard warranty liability for the six months ended June 30, 2025 and 2024 is as follows:


(In millions)	2025	2024
Balance as of January 1	$60	$18
Increase for warranties issued	8	7
Increase for pre-existing warranties	19	12
Decrease for payments	(16)	(12)
Balance as of June 30	$71	$25

The Company increased the standard pre-existing warranty accrual for the Building Envelope segment by

$15 million and $6 million for the three months ended June 30, 2025 and 2024, respectively, and $19 million and

$12 million for the six months ended June 30, 2025 and 2024, respectively, which was recorded in Cost of revenues

on the unaudited condensed consolidated statements of operations, notably attributed to a pre-acquisition

manufacturing issue. The increase in the pre-existing accrual associated with the Company’s standard warranty

program was influenced by important factors such as the long-tail line of coverage, persistent claims experience, and

relatively immature claims history.

Environmental matters

The Company’s operations are subject to and affected by federal, state, provincial and local laws and

regulations relating to, among other things, environmental matters (including climate change and greenhouse gas

emissions), health and safety matters (including related to the use of hazardous materials) and other regulatory

matters. Environmental operating permits, which are subject to modification, renewal and revocation, may be

required for the Company’s operations. The Company monitors and reviews its operations, procedures and policies

for compliance with these laws and regulations. Despite these compliance efforts, risk of environmental liability is

inherent in the operation of the Company’s business, as it is with other companies engaged in similar businesses, and

there can be no assurance that environmental liabilities or noncompliance will not have a material adverse effect on

the Company’s financial condition, results of operations or liquidity.

It is reasonably possible that our exposure will exceed amounts accrued. However, due to uncertainties

about the status of laws, regulations, technology and information related to individual sites and lawsuits, such

amounts are not reasonably estimable. The Company accrued environmental remediation obligations of $66 million

and $64 million for cleanup, restoration and ongoing maintenance and monitoring requirements as of June 30, 2025

and December 31, 2024, respectively, which are included in Other current liabilities and Other noncurrent liabilities

on the condensed consolidated balance sheets.

Off balance sheet arrangements

Periodically, the Company enters into off balance sheet commitments, including surety bonds and letters of

credit, to fulfill certain obligations related to specific projects, insurance and site restoration. As of June 30, 2025

and December 31, 2024, the Company had outstanding commitments amounting to $822 million and $809 million,

respectively. Historically, no material claims have been made against these financial instruments. The Company did

not have any other off balance sheet arrangements as of June 30, 2025 and December 31, 2024.

Self-insurance reserves

The Company’s wholly-owned captive insurance company, Mountain Prairie Insurance Company

(“MPIC”), which is subject to applicable insurance rules and regulations, insures the Company’s exposure related to

workers’ compensation, general liability, product liability and automobile liability on a primary basis. Additionally,

the Company maintains a self-insurance reserve for health insurance programs offered to eligible employees. The

Company purchases excess coverage from unrelated insurance carriers and obtains third-party coverage for other

forms of insurance.

MPIC establishes a reserve for estimated losses on reported claims and those incurred but not yet reported

utilizing actuarial projections and historical trends. The reserves are classified within Other current liabilities or

Other noncurrent liabilities on the condensed consolidated balance sheets based on projections of when the

estimated loss will be paid. The estimates that are utilized to record potential losses on claims are inherently

subjective, and actual claims could differ from amounts recorded, which could result in an increase or decrease of

expense in future periods.

Self-insurance reserves, excluding certain amounts recorded in Accounts payable, were $120 million and

$89 million as of June 30, 2025 and December 31, 2024, respectively.