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.

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.

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.

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.

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.

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.

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.

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


	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.