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RESTRUCTURING | 6 Months Ended
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Jun. 30, 2025
Restructuring and Related Activities [Abstract] |
RESTRUCTURING | RESTRUCTURING The Company may incur restructuring, and other exit costs in connection with its global cost reduction, product line and productivity initiatives and the Company’s growth strategy. Building Materials Business Sale Restructuring On November 4, 2024, the Company entered into a related party agreement to sell its Insulation segment's building materials business in China and Korea to a member of the business’ management team. During 2024, the Company recorded the assets at the fair value less cost to sell, which was less than the carrying value and resulted in an impairment of $91 million related primarily to Property, Plant and Equipment and Goodwill. Following the signing of the agreement, the Company took actions to reduce headcount and implement cost savings initiatives. These actions are expected to result in cumulative costs of approximately $15 million, primarily related to severance and other exit costs. During the first six months of 2025, the Company did not incur any charges related to this project. Acquisition-Related Restructuring Following the acquisition of Masonite, within the Company's Doors segment, the Company took actions to realize expected synergies from the newly acquired operations. In June 2025, the Company announced the closure of the Prineville, Oregon plant. In connection with these actions, the Company estimates it will incur cash charges of approximately $12 million primarily related to contract termination costs, severance and other exit costs, and non-cash charges of approximately $30 million, primarily related to accelerated depreciation and write-offs of inventory. The Company is continuing to review synergies as a result of this acquisition and expects to incur a material amount of incremental costs throughout 2025 and into future years. During the first six months of 2025, the Company recorded $17 million of charges, including non-cash charges of $9 million related to accelerated depreciation and $8 million of cash charges primarily related to severance. Global Composites Restructuring In December 2023, the Company took actions to reduce costs throughout its former Composites segment given then current market conditions, primarily through global workforce reductions, as well as streamlining manufacturing and supply chain operations. These actions primarily include salaried workforce reductions and the relocation of the Changzhou, China operations to Hangzhou, China. In connection with these actions, the Company estimates it will incur cash charges in the range of $20 million to $30 million, primarily related to severance and other exit costs, including termination costs, and non-cash charges in the range of $15 million to $20 million, primarily related to accelerated depreciation. During the first six months of 2025, the Company incurred charges of $5 million primarily related to severance. 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 allowed 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 closed its plants in Dorval, Quebec and Mission, British Columbia, Canada. The Company also ceased operations at its Qingdao, China facility. In connection with the exit of the Protective Packaging business, the Company estimated that it would incur cash charges of approximately $15 million, primarily related to severance and other exit costs. Additionally, the Company expected to incur total non-cash charges in the range of $70 million to $75 million, primarily related to accelerated depreciation of property, plant and equipment and accelerated amortization of definite-lived intangibles. During the first six months of 2025, the Company did not incur any charges relating to this project. The Company does not expect to incur any future charges. 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 U.S. granulated mineral wool market. These actions resulted in cumulative costs of approximately $30 million in 2023, primarily related to severance and accelerated depreciation. During the first six months of 2025, the Company did not incur any charges relating to this project. The Company does not expect to incur any future charges. 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 costs of approximately $20 million, primarily related to severance and other exit costs. During the first six months of 2025, the Company recorded $1 million of income primarily related to a reduction in severance. The Company does not expect to recognize significant incremental costs related to these actions. Consolidated Statements of Earnings From Continuing Operations Classification The following table presents the impact and respective location of total restructuring on the Consolidated Statements of Earnings From Continuing Operations, which are included within Corporate, Other and Eliminations:
|  | Three Months Ended June 30, | Six Months Ended June 30,
(In millions) | Location | 2025 | 2024 | 2025 | 2024
Accelerated depreciation | Cost of sales | $ | (9) |  | $ | (3) |  | $ | (9) |  | $ | (7) |
Other exit costs | Cost of sales | (1) |  | (2) |  | (1) |  | (5) |
Other exit costs | Marketing and administrative expenses | (1) |  | (1) |  | (1) |  | (1) |
Severance | Other expense, net | (7) |  | (41) |  | (9) |  | (48) |
Other exit costs | Other expense, net | — |  | — |  | (1) |  | — |
Total restructuring costs |  | $ | (18) |  | $ | (47) |  | $ | (21) |  | $ | (61) |
Summary of Unpaid Liabilities The following table summarizes the status of the unpaid liabilities from the Company’s restructuring activities:
| June 30, 2025 |  |
(In millions) | Acquisition-related Restructuring | Building Materials Business Sale | Global Composites Restructuring | Protective Packaging Exit | Wabash Facility Closure | European Operating Structure Optimization |  |
Balance at December 31, 2024 | $ | 3 |  | $ | 6 |  | $ | 14 |  | $ | — |  | $ | — |  | $ | 5 |  |  |
Restructuring costs | 17 |  | — |  | 5 |  | — |  | — |  | (1) |  |  |
Payments | (5) |  | — |  | (3) |  | — |  | — |  | (2) |  |  |
Accelerated depreciation and other non-cash items | (9) |  | — |  | 2 |  | — |  | — |  | — |  |  |
Balance at June 30, 2025 | $ | 6 |  | $ | 6 |  | $ | 18 |  | $ | — |  | $ | — |  | $ | 2 |  |  |
Cumulative charges incurred | $ | 72 |  | $ | 6 |  | $ | 38 |  | $ | 83 |  | $ | 33 |  | $ | 14 |  |  |
As of June 30, 2025, the remaining liability balance was comprised of $32 million related to severance, which the Company expects to pay over the next twelve months.
| June 30, 2024
(In millions) | Acquisition-related Restructuring | Global Composites Restructuring | Protective Packaging Exit | Wabash Facility Closure | European Operating Structure Optimization
Balance at December 31, 2023 | $ | — |  | $ | 12 |  | $ | 1 |  | $ | 3 |  | $ | 6 |
Restructuring costs | 41 |  | 13 |  | 4 |  | — |  | 3 |
Payments | (17) |  | (3) |  | (3) |  | (3) |  | (3) |
Accelerated depreciation and other non-cash items | (21) |  | (7) |  | (2) |  | — |  | — |
Balance at June 30, 2024 | $ | 3 |  | $ | 15 |  | $ | — |  | $ | — |  | $ | 6 |
Cumulative charges incurred | $ | 41 |  | $ | 29 |  | $ | 82 |  | $ | 33 |  | $ | 15 |

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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 S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: 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 3: 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 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: 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 + Details
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