Owens Corning (NYSE:OC) Files An 8-K Results of Operations and Financial ConditionItem 2.02.
On December22, 2017, U.S. tax reform legislation known as the Tax Cuts and Jobs Act (the “Act”) was signed into law. The Act makes substantial changes to U.S. tax law, including a reduction in the corporate tax rate from 35% to 21% beginning in 2018, deemed repatriation of foreign earnings, and significant changes to the taxation of foreign earnings going forward.
Owens Corning (the “Company”) currently estimates that the Act will result in a one-time, non-cash charge of approximately $100million in the fourth quarter of 2017. The Company believes the amount of future income not subject to U.S. federal income taxes is broadly unchanged as the reduction of the U.S. federal net operating loss is expected to be substantially offset by the ability to utilize foreign tax credits caused by the one-time tax on foreign earnings. The Company is still in the process of analyzing the one-time and ongoing impacts of the Act and thus, this estimate is preliminary and subject to change, and any changes could be material. The Company will provide further information on the fourth quarter and full-year impacts of the Act when it files its 2017 Form 10-K, which is scheduled for February21, 2018.
The information from Item 2.02 above is incorporated by reference into this Item 2.02.
Forward-Looking Statements
This Current Report on Form 8-K contains forward-looking statements within the meaning of Section27A of the Securities Act of 1933 and Section21E of the Securities Exchange Act of 1934. In particular, the statements regarding the Company’s expectations for a charge incurred in the fourth quarter of 2017 as a result of the Act and the amount of future income not subject to U.S. federal income taxes are forward-looking. These forward-looking statements are subject to risks, uncertainties and other factors and actual results may differ materially from those results projected in the statements, including the possibility that the actual amounts and effects of the one-time tax charge might be different from the estimated amount set forth herein due to, among other things, changes in interpretations and assumptions made, additional guidance that may be issued, the finalization of the Company’s financial statements for the period ended December31, 2017 and actions taken by the Company as a result of the effectiveness of the Act. Additional risks, uncertainties and other factors are factors detailed from time to time in the company’s Securities and Exchange Commission filings. The information in this Current Report on Form 8-K speaks as of January23, 2018, and is subject to change. The Company does not undertake any duty to update or revise forward-looking statements except as required by federal securities laws.
About Owens Corning (NYSE:OC)
Owens Corning is a holding company, which is engaged in the business of composite and building materials systems. The Company’s products range from glass fiber used to reinforce composite materials for transportation, electronics, marine, infrastructure, wind-energy and other markets to insulation and roofing for residential, commercial and industrial applications. The Company operates in three segments, namely, Composites, Insulation and Roofing. Its Composites segment consists of its Reinforcements and Downstream businesses. The Company’s Insulation products include thermal and acoustical batts, loosefill insulation, foam sheathing and accessories, and are sold under various brand names, such as Owens Corning PINK FIBERGLAS Insulation. The Company’s primary products in the Roofing segment are laminate and strip asphalt roofing shingles. It sells shingles and roofing accessories primarily through home centers, lumberyards, retailers, distributors and contractors in the United States.
