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RESTRUCTURING, ACQUISITION AND DIVESTITURE-RELATED COSTS | 6 Months Ended
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Jun. 30, 2023
Restructuring and Related Activities [Abstract] |
RESTRUCTURING, ACQUISITION AND DIVESTITURE-RELATED COSTS | RESTRUCTURING, ACQUISITION AND DIVESTITURE-RELATED COSTS The Company may incur restructuring, transaction and integration costs related to acquisitions and divestitures, and may incur restructuring and other exit costs in connection with its global cost reduction, productivity initiatives and the Company’s growth strategy. Protective Packaging Exit In May 2023, the Company made the decision to exit the Protective Packaging business within the Roofing segment, including the production and sale of wood packaging, metal packaging and custom products. Exiting Protective Packaging will allow the Company to focus resources on the growth of its building materials products, which supports the future growth aspirations of the enterprise. With the exit of the Protective Packaging business, the Company will be closing its plants in Dorval, Quebec and Mission, British Columbia, Canada. The Company will also be significantly scaling back operations at its Novia facility in Qingdao, China. In connection with the exit of the Protective Packaging business, the Company estimates that it will incur cash charges of approximately $20 million, primarily related to severance and other exit costs. Additionally, the Company expects to incur total non-cash charges in the range of $65 to $75 million, primarily related to accelerated depreciation of property, plant and equipment and accelerated amortization of definite-lived intangibles. During the second quarter of 2023, the Company recorded $29 million of charges, of which $17 million were non-cash charges, primarily related to accelerated depreciation and amortization, and $12 million of cash charges, primarily related to severance. Wabash Facility Closure In April 2023, the Company took actions to support its strategy to operate a flexible and cost-efficient manufacturing network through decisions to relocate the Wabash, Indiana mineral wool operations to Joplin, Missouri, and to exit the granulated mineral wool market. These actions are expected to result in cumulative incremental costs of approximately $30 million, primarily related to severance and accelerated depreciation. During the second quarter of 2023, the Company recorded $15 million of charges, primarily related to severance costs and accelerated depreciation. European Operating Structure Optimization In March 2023, the Company took actions to optimize the operating structure of its segments across Europe to increase its competitiveness. These actions are expected to result in cumulative incremental costs of approximately $20 million, primarily related to severance and other exit costs. During the first six months of 2023, the Company recorded $12 million of charges primarily related to severance costs. Composites Strategic Realignment Actions On July 1, 2022, the Company finalized the sale of the European portion of the DUCS product line located in Chambéry, France, within the Composite’s segment. The Company recorded a pre-tax charge of $30 million in Other expense (income), net on the Consolidated Statements of Earnings in 2022 to reflect the fair value less cost to sell the assets. The Company also took actions to convert the DUCS manufacturing facilities located in Anderson, South Carolina and Kimchon, Korea to produce other glass fiber products needed to support our growth strategy in building and construction applications. As a result, during the first six months of 2023, the Company recorded $3 million primarily related to other exit costs. The Company does not expect to recognize significant incremental costs related to these actions. Roofing Restructuring Actions In December 2021, the Company took actions to restructure operations within the Roofing segment’s components product line by relocating production assets from China to India, which allowed the business to optimize its manufacturing network and support a tariff mitigation strategy. During the first six months of 2023, the Company recorded $1 million of charges primarily related to other exit costs. The Company does not expect to recognize significant incremental costs related to these actions. Santa Clara Insulation Site During the third quarter of 2021, the Company entered into a sales agreement for the Company’s Insulation site in Santa Clara, California, as part of the Company’s ongoing strategy to operate a flexible, cost-efficient manufacturing network and geographically locate its assets to better serve its customers. On March 3, 2023, the Company finalized the sale of this site for total proceeds of $234 million, net of transaction fees. Total proceeds included a non-refundable deposit of $50 million received in the third quarter of 2021. During the first six months of 2023, the Company recorded $5 million of charges, primarily related to other exit costs, associated with this action. The Company does not expect to recognize significant incremental costs related to this action. Consolidated Statements of Earnings Classification The following table presents the impact and respective location of total restructuring, acquisition and divestiture-related costs on the Consolidated Statements of Earnings, which are included within Corporate, Other and Eliminations (in millions):
|  | Three Months Ended June 30, | Six Months Ended June 30,
Type of cost | Location | 2023 | 2022 | 2023 | 2022
Accelerated depreciation | Cost of sales | $ | 22 |  | $ | 7 |  | $ | 23 |  | $ | 13 |
Other exit costs | Cost of sales | 1 |  | — |  | 8 |  | — |
Other exit costs | Marketing and administrative expenses | 1 |  | 3 |  | 1 |  | 3 |
Acquisition-related costs | Marketing and administrative expenses | — |  | 3 |  | — |  | 3 |
Severance | Other expense (income), net | 16 |  | 1 |  | 25 |  | 1 |
Other exit costs | Other expense (income), net | — |  | 29 |  | 1 |  | 2 |
Accelerated amortization | Other expense (income), net | 7 |  | — |  | 7 |  | — |
Gain on sale of Santa Clara, California site | Gain on sale of site | — |  | — |  | (189) |  | — |
Total restructuring, acquisition and divestiture-related costs (gains) |  | $ | 47 |  | $ | 43 |  | $ | (124) |  | $ | 22 |
Summary of Unpaid Liabilities The following table summarizes the status of the unpaid liabilities from the Company’s restructuring activities (in millions):
| Protective Packaging Exit | Wabash Facility Closure | European Operating Structure Optimization | Composites Strategic Realignment Actions | Roofing Restructuring Actions | Santa Clara Insulation Site |  |  |  |  |  |  |  |
Balance at December 31, 2022 | $ | — |  | $ | — |  | $ | — |  | $ | 1 |  | $ | — |  | $ | 7 |  |  |  |  |  |  |  |  |
Restructuring costs | 29 |  | 15 |  | 12 |  | 3 |  | 1 |  | 5 |  |  |  |  |  |  |  |  |
Payments | — |  | — |  | (2) |  | (3) |  | (1) |  | (11) |  |  |  |  |  |  |  |  |
Accelerated depreciation and other non-cash items | (17) |  | (12) |  | — |  | — |  | — |  | (1) |  |  |  |  |  |  |  |  |
Balance at June 30, 2023 | $ | 12 |  | $ | 3 |  | $ | 10 |  | $ | 1 |  | $ | — |  | $ | — |  |  |  |  |  |  |  |  |
Cumulative charges incurred | $ | 29 |  | $ | 15 |  | $ | 12 |  | $ | 12 |  | $ | 9 |  | $ | 65 |  |  |  |  |  |  |  |  |
As of June 30, 2023, the remaining liability balance is comprised of $26 million of severance, inclusive of $2 million of non-current severance and $24 million of severance the Company expects to pay over the next twelve months.

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//420/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482017/420-10-50-1 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4(e)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479823/420-10-S99-2 + Details
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