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.

In the first quarter of 2026, the Company took actions to reduce operating expenses. These actions are expected to result in cumulative charges of approximately $58 million, primarily related to severance and other exit costs. During the first three months of 2026, the Company recorded $32 million of cash charges related to severance.

In September 2025, the Company took actions to reduce costs in its Roofing segment, primarily through relocation of its lumber facility. These actions are expected to result in cumulative charges of approximately $22 million, primarily related to accelerated depreciation, asset write-offs, and other exit costs. During the first three months of 2026, the Company recorded $1 million of non-cash charges related to accelerated depreciation.

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. 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 three months of 2025 and 2026, the Company did not incur any charges related to this project. The Company does not expect to recognize significant incremental costs related to these actions.

Following the acquisition of Masonite, within the Company's Doors segment, the Company took actions to realize expected synergies from the newly acquired operations by closing certain locations and consolidating production. These actions include the decision to close the Santiago, Chile facility in 2024. In the second quarter of 2025, the Company announced the closure of the Prineville, Oregon facility. In the third quarter of 2025, the Company announced the closure of the Greenville, Texas facility. In the fourth quarter of 2025, the Company announced the closure of the Aldergrove, British Columbia facility and the Mesquite, Texas facility.

In connection with the Prineville closure, 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.

In connection with the Greenville closure, the Company estimates it will incur cash charges of approximately $7 million, primarily related to severance and other exit costs, and non-cash charges of approximately $10 million, primarily related to accelerated depreciation.

In connection with the Aldergrove closure, the Company estimates it will incur cash charges of approximately $22 million, primarily related to lease termination and severance, and non-cash charges of approximately $7 million primarily related to accelerated depreciation.

In connection with the Mesquite closure, the Company estimates it will incur cash charges of approximately $2 million, primarily related to other exit costs, and non-cash charges of approximately $7 million, primarily related to accelerated depreciation.

During the first three months of 2026, the Company recorded $13 million, consisting primarily of non-cash charges related to other exit costs and accelerated depreciation. During the first three months of 2025, the Company recorded $4 million of charges related to these actions. The Company is continuing to review synergies as a result of this acquisition and expects to incur incremental costs throughout 2026.

In December 2023, the Company took actions to reduce costs throughout our former global Composites segment due to 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 three months of 2025 and 2026, the Company did not incur any charges related to this project. The Company does not expect to recognize significant incremental costs related to these actions.

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 three months of 2026, the Company did not incur any charges related to this project. During the first three 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.

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 March 31,
(In millions)	Location	2026		2025
Accelerated depreciation	Cost of sales	$	(3)	$	—
Other exit costs	Cost of sales	(5)		—

Severance	Other expense, net	(32)		(2)
Other exit costs	Other expense, net	(6)		(1)
Total Restructuring Costs		$	(46)	$	(3)


	March 31, 2026
(In millions)	Building Materials Business Sale		Acquisition-related Restructuring		Global Composites Restructuring		European Operating Structure Optimization		Roofing Integration Restructuring		Global Corporate Restructuring
Balance at December 31, 2025	$	—	$	11	$	10	$	—	$	1	$	—
Restructuring costs	—		13		—		—		1		32
Payments	—		(7)		(4)		—		(1)		(2)
Accelerated depreciation and other non-cash items	—		(12)		—		—		(1)		—
Balance at March 31, 2026	$	—	$	5	$	6	$	—	$	—	$	30
Cumulative charges incurred	$	4	$	122	$	40	$	12	$	9	$	32

As of March 31, 2026, the remaining liability balance was primarily comprised of $41 million related to severance, which the Company expects to pay over the next twelve months.


	March 31, 2025
(In millions)	Building Materials Business Sale		Acquisition-related Restructuring		Global Composites Restructuring		European Operating Structure Optimization
Balance at December 31, 2024	$	6	$	3	$	14	$	5
Restructuring costs	—		4		—		(1)
Payments	—		(4)		(1)		(1)
Accelerated depreciation and other non-cash items	—		—		—		(1)
Balance at March 31, 2025	$	6	$	3	$	13	$	2
Cumulative charges incurred	$	6	$	59	$	33	$	14