LEASES
On February 13, 2025, the Company entered into the GR Agreement for the sale of our global GR business. In connection with the GR Agreement, some leases will be transferring at the time of sale. The related portions of assets, liabilities and costs are identified as discontinued operations.
Balance Sheet Classification
The table below presents the lease-related assets and liabilities recorded on the balance sheet. This table discloses balances related to both continuing and discontinued operations, and their respective locations on the Consolidated Balance Sheets:
(In millions)December 31,
LeasesLocation20252024
Assets
Operating lease assets for continuing operationsOperating lease right-of-use assets $507 $411 
Operating lease assets for discontinued operationsNon-current assets of discontinued operations16 
Finance lease assets for continuing operations Other non-current assets 291 259 
Finance lease assets for discontinued operationsNon-current assets of discontinued operations4751
Total lease assets$861 $724 
Liabilities
Current
Operating lease liabilities for continuing operations  Current operating lease liabilities $83 $83 
Operating lease liabilities for discontinued operationsCurrent liabilities of discontinued operations
Finance lease liabilities for continuing operations  Long-term debt - current portion 36 32 
Finance lease liabilities for discontinued operations Current liabilities of discontinued operations66
Non-current
Operating lease liabilities for continuing operations  Non-current operating lease liabilities 450 348 
Operating lease liabilities for discontinued operationsNon-current liabilities of discontinued operations33 27 
Finance lease liabilities for continuing operations  Long-term debt, net of current portion 273 236 
Finance lease liabilities for discontinued operations Non-current liabilities of discontinued operations36 48 
Total lease liabilities$922 $784 
Lease Costs
The table below presents lease-related costs for both continuing and discontinued operations:
Twelve Months Ended December 31,
(In millions)202520242023
Operating lease cost$124 $103 $81 
Finance lease cost
Amortization of right-of-use assets$43 $45 $35 
Interest on lease liabilities$17 $11 $
Short-term lease cost$$$
Variable lease cost$14 $11 $
Operating lease cost for discontinued operations in 2025, 2024, and 2023 was $7 million, $5 million and $7 million, respectively. There was no finance lease cost related to amortization of right-of-use assets for discontinued operations in 2025, due to the classification as discontinued operations on January 1, 2025. Finance lease cost related to amortization of right-of-use assets for discontinued operations in 2024, and 2023 was $5 million and $4 million, respectively. Finance lease cost related to interest on lease liabilities for discontinued operations in 2025, 2024, and 2023 was $2 million, $2 million and $1 million, respectively.
Other Information
The tables below present supplemental information related to leases for both continuing and discontinued operations:
December 31,
Weighted-average remaining lease term (years)202520242023
Operating leases8.28.24.6
Finance leases12.913.69.5
December 31,
Weighted-average discount rate202520242023
Operating leases5.33 %5.22 %3.79 %
Finance leases4.94 %4.88 %4.02 %
Maturities of Lease Liabilities
The table below reconciles the undiscounted cash flows for each of the first five years and the total of the remaining years to the finance lease liabilities and operating lease liabilities recorded on the balance sheet as of December 31, 2025:
Continuing
Operations
Discontinued
Operations
(In millions)Operating LeasesFinance LeasesOperating LeasesFinance Leases
Fiscal Year:
2026$110 $52 $$
202799 45 
202889 40 
202974 29 
203054 24 
2031 and beyond237 240 26 24 
Total minimum lease payments663 430 49 54 
Less: implied interest130 121 11 12 
Present value of future minimum lease payments533 309 38 42 
Less: current lease obligations83 36 
Long-term lease obligations$450 $273 $33 $36 
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About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.