CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

3 Months Ended

6 Months Ended

12 Months Ended

Jun. 30, 2012

Jun. 30, 2011

Jun. 30, 2012

Jun. 30, 2011

Dec. 31, 2011

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

OWENS CORNING AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 2012
(in millions)
		Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
NET SALES			$	-	$	989	$	508	$	(106)	$	1,391
COST OF SALES				1		792		465		(106)		1,152
		Gross margin		(1)		197		43		-		239
OPERATING EXPENSES
	Marketing and administrative expenses			28		64		36		-		128
	Science and technology expenses			-		17		4		-		21
	Charges related to cost reduction actions			-		-		2		-		2
	Other expenses, net			(11)		2		12		-		3
		Total operating expenses		17		83		54		-		154
EARNINGS BEFORE INTEREST AND TAXES				(18)		114		(11)		-		85
Interest expense, net				24		2		2		-		28
EARNINGS BEFORE TAXES				(42)		112		(13)		-		57
Less: Income tax expense				(17)		33		1		-		17
Equity in net earnings of subsidiaries				64		(15)		-		(49)		-
NET EARNINGS				39		64		(14)		(49)		40
Less: Net earnings attributable to noncontrolling interest				-		-		1		-		1
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING			$	39	$	64	$	(15)	$	(49)	$	39

OWENS CORNING AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS (LOSS)
FOR THE THREE MONTHS ENDED JUNE 30, 2012
(in millions)
Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
NET EARNINGS	$	39		$	64	$	(14)	$	(49)	$	40
Currency translation adjustment		(43)			-		-		-		(43)
Pension and other postretirement adjustment (net of tax)		-	0		-		-		-		-
Deferred income on hedging (net of tax)		3			-		-		-		3
COMPREHENSIVE EARNINGS		(1)			64		(14)		(49)		-
Less: Comprehensive earnings attributable to noncontrolling interest		-			-		1		-		1
NET EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING	$	(1)		$	64	$	(15)	$	(49)	$	(1)

OWENS CORNING AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 2011
(in millions)
		Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
NET SALES			$	-	$	1,010	$	532	$	(91)	$	1,451
COST OF SALES				(5)		837		431		(91)		1,172
		Gross margin		5		173		101		-		279
OPERATING EXPENSES
	Marketing and administrative expenses			13		94		34		-		141
	Science and technology expenses			-		15		4		-		19
	Other (income) expenses, net			(30)		22		(8)		-		(16)
		Total operating expenses		(17)		131		30		-		144
EARNINGS BEFORE INTEREST AND TAXES				22		42		71		-		135
Interest expense, net				29		(3)		2		-		28
EARNINGS BEFORE TAXES				(7)		45		69		-		107
Less: Income tax expense				(1)		12		18		-		29
Equity in net earnings of subsidiaries				84		51		-		(135)		-
Equity in net earnings of affiliates				-		-		1		-		1
NET EARNINGS				78		84		52		(135)		79
Less: Net earnings attributable to noncontrolling interest				-		-		1		-		1
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING			$	78	$	84	$	51	$	(135)	$	78

OWENS CORNING AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 2011
(in millions)
Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations		Consolidated
NET EARNINGS	$	78	$	84		$	52	$	(135)	$	79
Currency translation adjustment		22		-			-		-		22
Pension and postretirement adjustment (net of tax)		-		-	0.1		-		-		-
Deferred income (loss) on hedging (net of tax)		(1)		-			-		-		(1)
COMPREHENSIVE EARNINGS		99		84			52		(135)		100
Less: Comprehensive earnings attributable to noncontrolling interest		-	0.1	-			1		-		1
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING	$	99	$	84		$	51	$	(135)	$	99

17.       CONDENSED CONSOLIDATING FINANCIAL STATEMENTS

The following Condensed Consolidating Financial Statements present the financial information required with respect to those entities which guarantee certain of the Company's debt. The Condensed Consolidating Financial Statements are presented on the equity method. Under this method, the investments in subsidiaries are recorded at cost and adjusted for the Company's share of the subsidiaries' cumulative results of operations, capital contributions, distributions and other equity changes. The principal elimination entries eliminate investment in subsidiaries and intercompany balances and transactions.

Guarantor and Nonguarantor Financial Statements

The Senior Notesand the Senior Revolving Credit Facility are guaranteed, fully, unconditionally and jointly and severally, by each of Owens Corning's current and future 100% owned material domestic subsidiaries that is a borrower or a guarantor under Owens Corning's Credit Agreement, which permits changes to the named guarantors in certain situations (collectively, the “Guarantor Subsidiaries”). The remaining subsidiaries have not guaranteed the Senior Notes and the Senior Revolving Credit Facility (collectively, the “Nonguarantor Subsidiaries”).

During the fourth quarter of 2011, the Company discovered certain items were not appropriately classified between the Parent and Guarantor Subsidiaries within the Condensed Consolidating Financial Statements. The effect of correcting these classifications was not material to the consolidating financial information. The Company has revised its 2011 quarterly consolidating information for comparison with 2012.

OWENS CORNING AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF EARNINGS (LOSS)
FOR THE SIX MONTHS ENDED JUNE 30, 2012
(in millions)
		Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
NET SALES			$	-	$	1,951	$	976	$	(190)	$	2,737
COST OF SALES				3		1,612		887		(190)		2,312
		Gross margin		(3)		339		89		-		425
OPERATING EXPENSES
	Marketing and administrative expenses			62		132		71		-		265
	Science and technology expenses			-		32		8		-		40
	Charges related to cost reduction actions			-		-		36		-		36
	Other expenses, net			(19)		10		20		-		11
		Total operating expenses		43		174		135		-		352
EARNINGS BEFORE INTEREST AND TAXES				(46)		165		(46)		-		73
Interest expense, net				49		2		5		-		56
EARNINGS BEFORE TAXES				(95)		163		(51)		-		17
Less: Income tax expense				(36)		45		13		-		22
Equity in net earnings of subsidiaries				52		(66)		-		14		-
NET EARNINGS (LOSS)				(7)		52		(64)		14		(5)
Less: Net earnings attributable to noncontrolling interest				-		-		2		-		2
NET EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING			$	(7)	$	52	$	(66)	$	14	$	(7)

OWENS CORNING AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS (LOSS)
FOR THE SIX MONTHS ENDED JUNE 30, 2012
(in millions)
Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
NET EARNINGS (LOSS)	$	(7)	$	52	$	(64)	$	14	$	(5)
Currency translation adjustment		(19)		-		-		-		(19)
Pension and other postretirement adjustment (net of tax)		(1)		-		-		-		(1)
Deferred income on hedging (net of tax)		1		-		-		-		1
COMPREHENSIVE EARNINGS (LOSS)		(26)		52		(64)		14		(24)
Less: Comprehensive earnings attributable to noncontrolling interest		-		-		2		-		2
NET EARNINGS (LOSS) ATTRIBUTABLE TO OWENS CORNING	$	(26)	$	52	$	(66)	$	14	$	(26)

OWENS CORNING AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF JUNE 30, 2012
(in millions)
ASSETS				Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
CURRENT ASSETS
	Cash and cash equivalents			$	-	$	-	$	54	$	-	$	54
	Receivables, net				-		-		1,029		(225)		804
	Due from affiliates				-		2,575		-		(2,575)		-
	Inventories				-		474		341		-		815
	Other current assets				(1)		78		96		-		173
			Total current assets		(1)		3,127		1,520		(2,800)		1,846
Investment in subsidiaries					6,759		2,406		533		(9,698)		-
Due from affiliates					-		62		958		(1,020)		-
Property, plant and equipment, net					385		1,296		1,223		-		2,904
Goodwill					-		1,068		75		-		1,143
Intangible assets					-		949		323		(217)		1,055
Deferred income taxes					91		412		22		-		525
Other non-current assets					62		67		113		-		242
TOTAL ASSETS				$	7,296	$	9,387	$	4,767	$	(13,735)	$	7,715
LIABILITIES AND EQUITY
CURRENT LIABILITIES
	Accounts payable and accrued liabilities			$	14	$	683	$	428	$	(225)	$	900
	Due to affiliates				1,248		-		1,327		(2,575)		-
	Short-term debt				-		1		23		-		24
	Long-term debt – current portion				-		2		6		-		8
			Total current liabilities		1,262		686		1,784		(2,800)		932
Long-term debt, net of current portion					1,937		29		239		-		2,205
Due to affiliates					-		958		62		(1,020)		-
Pension plan liability					285		-		136		-		421
Other employee benefits liability					-		241		20		-		261
Deferred income taxes					-		-		48		-		48
Other liabilities					202		181		31		(217)		197
Commitments and contingencies
OWENS CORNING STOCKHOLDERS’ EQUITY
	Common stock				1		-		-		-		1
	Additional paid in capital				3,924		6,477		1,985		(8,462)		3,924
	Accumulated earnings (deficit)				463		815		421		(1,236)		463
	Accumulated other comprehensive deficit				(334)		-		-		-		(334)
	Cost of common stock in treasury				(444)		-		-		-		(444)
		Total Owens Corning stockholders’ equity			3,610		7,292		2,406		(9,698)		3,610
	Noncontrolling interest				-		-		41		-		41
Total equity					3,610		7,292		2,447		(9,698)		3,651
TOTAL LIABILITIES AND EQUITY				$	7,296	$	9,387	$	4,767	$	(13,735)	$	7,715

OWENS CORNING AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2012
(in millions)
			Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
NET CASH FLOW USED FOR OPERATING ACTIVITIES				$	(59)	$	(72)	$	91	$	-	$	(40)
NET CASH FLOW USED FOR INVESTING ACTIVITIES
		Additions to plant and equipment			(9)		(87)		(67)		-		(163)
		Proceeds from the sale of assets or affiliates			-		-		7		-		7
			Net cash flow used for investing activities		(9)		(87)		(60)		-		(156)
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES
		Proceeds from senior revolving credit and receivables securitization facilities			826		-		107		-		933
		Payments on senior revolving credit and receivables securitization facilities			(595)		-		(53)		-		(648)
		Payments on long-term debt			(4)		-		(2)		-		(6)
		Net decrease in short-term debt			(8)		1		3		-		(4)
		Purchases of treasury stock			(82)		-		-		-		(82)
		Other intercompany loans			(75)		158		(83)		-		-
		Other			6		-		-		-		6
			Net cash flow provided by financing activities		68		159		(28)		-		199
Effect of exchange rate changes on cash					-		-		(1)		-		(1)
Net increase in cash and cash equivalents					-		-		2		-		2
Cash and cash equivalents at beginning of period					-		-		52		-		52
CASH AND CASH EQUIVALENTS AT END OF
	PERIOD			$	-	$	-	$	54	$	-	$	54

OWENS CORNING AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF EARNINGS
FOR THE SIX MONTHS ENDED JUNE 30, 2011
(in millions)
		Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
NET SALES			$	-	$	1,837	$	1,020	$	(168)	$	2,689
COST OF SALES				(13)		1,562		827		(168)		2,208
		Gross margin		13		275		193		-		481
OPERATING EXPENSES
	Marketing and administrative expenses			26		180		70		-		276
	Science and technology expenses			-		31		7		-		38
	Other (income) expenses, net			(57)		35		(7)		-		(29)
		Total operating expenses		(31)		246		70		-		285
EARNINGS BEFORE INTEREST AND TAXES				44		29		123		-		196
Interest expense, net				54		(3)		2		-		53
EARNINGS BEFORE TAXES				(10)		32		121		-		143
Less: Income tax expense				(2)		9		33		-		40
Equity in net earnings of subsidiaries				110		88		-		(198)		-
Equity in net earnings of affiliates				-		(1)		2		-		1
NET EARNINGS				102		110		90		(198)		104
Less: Net earnings attributable to noncontrolling interest				-		-		2		-		2
NET EARNINGS ATTRIBUTABLE TO OWENS CORNING			$	102	$	110	$	88	$	(198)	$	102

OWENS CORNING AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF COMPREHENSIVE EARNINGS
FOR THE SIX MONTHS ENDED JUNE 30, 2011
(in millions)
Parent		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations		Consolidated
NET EARNINGS	$	102	$	110		$	90	$	(198)	$	104
Currency translation adjustment		61		-			-		-		61
Pension and postretirement adjustment (net of tax)		(1)		-	0.1		-		-		(1)
Deferred income on hedging (net of tax)		2		-			-		-		2
COMPREHENSIVE EARNINGS		164		110			90		(198)		166
Less: Comprehensive earnings attributable to noncontrolling interest		-	0.1	-			2		-		2
COMPREHENSIVE EARNINGS ATTRIBUTABLE TO OWENS CORNING	$	164	$	110		$	88	$	(198)	$	164

OWENS CORNING AND SUBSIDIARIES
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2011
(in millions)
				Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
NET CASH FLOW USED FOR OPERATING ACTIVITIES				$	(54)	$	(50)	$	(30)	$	-		$	(134)
NET CASH FLOW USED FOR INVESTING ACTIVITIES
		Additions to plant and equipment			-		(104)		(106)		-			(210)
		Proceeds from the sale of assets or affiliates			-		-		75		-			75
			Net cash flow used for investing activities		-		(104)		(31)		-			(135)
NET CASH FLOW PROVIDED BY FINANCING ACTIVITIES
		Proceeds from senior revolving credit facility			685		-		202		-			887
		Payments on senior revolving credit facility			(595)		-		-		-			(595)
		Proceeds from long-term debt			-		-		6		-			6
		Payments on long-term debt			-		-		(9)		-			(9)
		Net decrease in short-term debt			-		-		17		-			17
		Purchase of treasury stock			(53)		-		-		-			(53)
		Other intercompany loans			48		154		(202)		-			-
		Other			12		-		-		-			12
			Net cash flow provided by financing activities		97		154		14		-	.		265
Effect of exchange rate changes on cash					-		-		3		-			3
Net increase (decrease) in cash and cash equivalents					43		-		(44)		-			(1)
Cash and cash equivalents at beginning of period					3		-		49		-			52
CASH AND CASH EQUIVALENTS AT END OF
	PERIOD			$	46	$	-	$	5	$	-		$	51

OWENS CORNING AND SUBSIDIARIES
CONDENSED CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 2011
(in millions)
ASSETS				Parent			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
CURRENT ASSETS
	Cash and cash equivalents			$	-		$	-	$	52	$	-	$	52
	Receivables, net				-			-		730		(120)		610
	Due from affiliates				529			2,369		-		(2,898)		-
	Inventories				-			447		348		-		795
	Other current assets				1			75		103		-		179
			Total current assets		530			2,891		1,233		(3,018)		1,636
Investment in subsidiaries					6,587			2,374		533		(9,494)		-
Due from affiliates					-			63		997		(1,060)		-
Property, plant and equipment, net					384			1,278		1,242		-		2,904
Goodwill					-			1,069		75		-		1,144
Intangible assets					-			959		352		(238)		1,073
Deferred income taxes					71			448		19		-		538
Other non-current assets					60			72		100		-		232
TOTAL ASSETS				$	7,632		$	9,154	$	4,551	$	(13,810)	$	7,527
LIABILITIES AND EQUITY
CURRENT LIABILITIES
	Accounts payable and accrued liabilities			$	21		$	553	$	422	$	(120)	$	876
	Due to affiliates				1,676			25		1,197		(2,898)		-
	Short-term debt				8			-		20		-		28
	Long-term debt – current portion				-			1		3		-		4
			Total current liabilities		1,705			579		1,642		(3,018)		908
Long-term debt, net of current portion					1,709			29		192		-		1,930
Due to affiliates					-			997		63		(1,060)		-
Pension plan liability					293			-		142		-		435
Other employee benefits liability					-			247		20		-		267
Deferred income taxes					-			-		51		-		51
Other liabilities					224			182		27		(238)		195
Commitments and contingencies
OWENS CORNING STOCKHOLDERS’ EQUITY
	Preferred stock				-	0		-		-		-		-
	Common stock				1			-		-		-		1
	Additional paid in capital				3,907			6,357		1,889		(8,246)		3,907
	Accumulated earnings (deficit)				470			763		485		(1,248)		470
	Accumulated other comprehensive deficit				(315)			-		-		-		(315)
	Cost of common stock in treasury				(362)			-		-		-		(362)
		Total Owens Corning stockholders’ equity			3,701			7,120		2,374		(9,494)		3,701
	Noncontrolling interest				-			-		40		-		40
Total equity					3,701			7,120		2,414		(9,494)		3,741
TOTAL LIABILITIES AND EQUITY				$	7,632		$	9,154	$	4,551	$	(13,810)	$	7,527