RESTRUCTURING AND ACQUISITION-RELATED COSTS

9 Months Ended

Sep. 30, 2021

Restructuring and Related Activities [Abstract]

RESTRUCTURING AND ACQUISITION-RELATED COSTS

RESTRUCTURING AND ACQUISITION-RELATED COSTS

The Company may incur restructuring, transaction and integration costs related to acquisitions, and may incur restructuring costs in connection with its global cost reduction and productivity initiatives.

Santa Clara Insulation Site

During the third quarter of 2021, the Company entered into a purchase and sale agreement for the Company's Insulation site in Santa Clara, California. The Company expects to continue operations at this facility through the third quarter of 2022 and complete the transaction in the first quarter of 2023. This action is part of the Company's on-going strategy to operate a flexible, cost-efficient manufacturing network and geographically locate its assets to better service its customers. Cumulative cash pre-tax charges associated with the transaction are expected to be in the range of $30 million to $40 million, primarily related to severance and one-time employee termination benefits, demolition costs, and other closing costs. In addition, cumulative non-cash charges are expected to be in the range of $75 million to $85 million, primarily consisting of accelerated depreciation of property, plant and equipment and derecognition of the carrying value of land, which will offset the gross proceeds at closing.

In the third quarter, the Company recorded $19 million of charges, comprised of $12 million of severance, $5 million of accelerated depreciation and $2 million of pension related charges in the quarter, associated with this agreement.

2020 Insulation Restructuring Actions

During the fourth quarter of 2020, the Company took actions to avoid future capital outlays and reduce costs in its global Insulation segment, mainly through decisions to close certain manufacturing facilities in Shanghai, China and Fresno, Texas, and optimize a facility in Parainen, Finland. During the first nine months of 2021, the Company recorded $3 million of charges primarily related to accelerated depreciation. The Company expects to recognize approximately $1 million of incremental charges in 2021 related to these actions.

2020 Composites Restructuring Actions

During 2020, the Company took actions to reduce costs throughout its global Composites segment primarily through global workforce reductions, closure of manufacturing lines and other asset write-offs. The Company does not expect to recognize significant incremental costs related to these actions.

Acquisition-Related Restructuring

Following the acquisitions of Paroc Group Oy ("Paroc") and Pittsburgh Corning Corporation and Pittsburgh Corning Europe NV (collectively, "Pittsburgh Corning") into the Company's Insulation segment, the Company took actions to realize expected synergies from the newly acquired operations. The Company does not expect to recognize significant incremental costs related to these actions.

Consolidated Statements of Earnings (Loss) Classification

The following table presents the impact and respective location of total restructuring costs on the Consolidated Statements of Earnings (Loss), which are included within Corporate, Other and Eliminations (in millions):

		Three Months Ended September 30,				Nine Months Ended September 30,
Type of cost	Location	2021		2020		2021		2020
Accelerated depreciation	Cost of sales	$	6	$	—	$	8	$	1
Other exit costs	Cost of sales	—		—		—		3
Other exit costs	Marketing and administrative expenses	—		—		1		—
Severance	Other (income) expenses, net	12		—		10		5
Other exit (gains)/costs (a)	Other (income) expenses, net	(15)		—		(14)		1
Other exit costs	Non-operating income	2		—		2		—
Total restructuring costs		$	5	$	—	$	7	$	10

(a) Other exit (gains)/costs in the third quarter of 2021 includes a $15 million gain related to the sale of land in Thimmapur, India. Please refer to Note 11 of our 2017 Form 10-K for more information about the 2017 Cost Reduction actions.

Summary of Unpaid Liabilities

The following table summarizes the status of the unpaid liabilities from the Company's restructuring activities (in millions):

	Santa Clara Insulation Site		2020 Insulation Restructuring Actions		2020 Composites Restructuring Actions		Acquisition-Related Restructuring
Balance at December 31, 2020	$	—	$	2	$	2	$	9
Restructuring costs/(gains)	19		3		—		(1)
Payments	—		(2)		(2)		(2)
Accelerated depreciation and other non-cash items	(7)		(2)		—		—
Balance at September 30, 2021	$	12	$	1	$	—	$	6
Cumulative charges incurred	$	19	$	26	$	13	$	28

As of September 30, 2021, the remaining liability balance is comprised of $19 million of severance, inclusive of $14 million of non-current severance and $5 million of severance the Company expects to pay over the next twelve months.