USG CORP

CIK:0000757011|SEC Filings

Consolidated Statements of Income - USD ($) $ in Millions	12 Months Ended
Consolidated Statements of Income - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Statement [Abstract]
Net sales	$ 3,336	$ 3,204	$ 3,017
Cost of products sold	2,730	2,548	2,317
Gross profit	606	656	700
Selling and administrative expenses	379	303	297
Long-lived asset impairment charges	0	0	10
Recovery of receivable	0	0	(3)
Operating profit	227	353	396
Income from equity method investments	42	59	49
Interest expense	(57)	(69)	(145)
Interest income	7	4	4
Loss on extinguishment of debt	0	(22)	(37)
Other income, net	8	10	7
Income from continuing operations before income taxes	227	335	274
Income tax expense	(34)	(238)	(63)
Income from continuing operations	193	97	211
Income (loss) from discontinued operations, net of tax	3	(9)	20
Gain on sale of discontinued operations, net of tax	0	0	279
Net income	$ 196	$ 88	$ 510
Earnings per common share - basic:
Income from continuing operations (in dollars per share)	$ 1.38	$ 0.67	$ 1.45
Income (loss) from and gain on sale of discontinued operations (in dollars per share)	0.02	(0.06)	2.04
Net income (in dollars per share)	1.40	0.61	3.49
Earnings per common share - diluted:
Income from continuing operations (in dollars per share)	1.36	0.66	1.44
Income (loss) from and gain on sale of discontinued operations (in dollars per share)	0.02	(0.06)	2.02
Net income (in dollars per share)	$ 1.38	$ 0.60	$ 3.46
Average common shares (in shares)	140,250,482	144,447,488	145,929,506
Dilutive awards under long-term incentive plan (in shares)	2,360,818	2,263,358	1,731,473
Average diluted common shares (in shares)	142,611,300	146,710,846	147,660,979
Cash dividend declared per share (in dollars per share)	$ 0.50	$ 0	$ 0

Consolidated Statements of Cash Flows $ in Millions	12 Months Ended
Consolidated Statements of Cash Flows $ in Millions	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Operating Activities
Net income	$ 196	$ 88	$ 510
Less: Income (loss) from discontinued operations, net of tax	3	(9)	20
Less: Gain on sale of discontinued operations, net of tax	0	0	279
Income from continuing operations	193	97	211
Adjustments to reconcile income from continuing operations to net cash:
Depreciation, depletion, amortization, and accretion	150	132	134
Loss on extinguishment of debt	0	22	37
Long-lived asset impairment charges	0	0	10
Recovery of receivable	0	0	(3)
Share-based compensation expense	21	18	18
Deferred income taxes	28	255	57
(Gain) loss on asset dispositions	(12)	1	(9)
Loss on sale of equity method investment	8	0	0
Income from equity method investments	(42)	(59)	(49)
Dividends received from equity method investments	30	42	47
Pension settlement	0	12	20
(Increase) decrease in working capital
Receivables	(5)	(32)	6
Income taxes receivable, net	(4)	(12)	3
Inventories	(42)	(13)	(20)
Other current assets	1	(3)	9
Payables	7	20	21
Accrued expenses	(2)	(36)	(39)
Increase in other assets	0	4	0
Decrease in pension and other postretirement benefits	(40)	(57)	(142)
Decrease in other liabilities	(23)	(13)	(6)
Other, net	13	4	9
Net cash provided by operating activities of continuing operations	281	382	314
Net cash provided by operating activities of discontinued operations	3	0	59
Net cash provided by operating activities	284	382	373
Investing Activities
Purchases of marketable securities	(102)	(105)	(274)
Sales or maturities of marketable securities	103	97	413
Capital expenditures	(219)	(168)	(83)
Net proceeds from asset dispositions	14	2	12
Net proceeds from sale of equity method investment	3	0	0
Acquisition of business, including working capital adjustment	2	(52)	0
Receipt of collection on loan from former joint venture	4	0	0
Return of capital	0	0	1
Insurance proceeds	0	1	1
Net cash (used for) provided by investing activities of continuing operations	(195)	(225)	70
Net cash provided by investing activities of discontinued operations	0	6	667
Net cash (used for) provided by investing activities	(195)	(219)	737
Financing Activities
Issuance of debt	0	500	0
Repayment of debt	0	(521)	(1,131)
Payment of debt issuance fees	0	(8)	0
Issuance of common stock	11	15	4
Repurchase of common stock	(76)	(184)	0
Repurchases of common stock to satisfy employee tax withholding obligations	(15)	(4)	(2)
Conditional special dividend	(70)	0	0
Net cash used for financing activities of continuing operations	(150)	(202)	(1,129)
Effect of exchange rate changes on cash	(5)	6	(5)
Net decrease in cash and cash equivalents from continuing operations	(69)	(39)	(750)
Net increase in cash and cash equivalents from discontinued operations	3	6	726
Net decrease in cash and cash equivalents	(66)	(33)	(24)
Cash, cash equivalents, and restricted cash at beginning of period	394	427	451
Cash, cash equivalents, and restricted cash at end of period	328	394	427
Supplemental Cash Flow Disclosures:
Interest paid, net of interest capitalized	53	82	153
Income taxes paid, net of refunds received	9	10	4
Noncash Investing and Financing Activities:
Amount in accounts payable for capital expenditures	23	18	15
Reversal of USG Boral Building Products earnout	0	0	(24)
Dividends Payable	$ 2	$ 0	$ 0

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 328	$ 394
Short-term marketable securities	55	62
Receivables (net of reserves: 2018 - $10 and 2017 - $9)	233	233
Inventories	290	252
Income taxes receivable	21	15
Other current assets	44	35
Total current assets	971	991
Long-term marketable securities	43	37
Property, plant and equipment, net	1,838	1,762
Deferred income taxes	246	287
Equity method investments	662	686
Goodwill and intangible assets	40	43
Other assets	42	45
Total assets	3,842	3,851
Liabilities and Stockholders’ Equity
Accounts payable	290	280
Accrued expenses	129	135
Income taxes payable	2	0
Total current liabilities	421	415
Long-term debt	1,079	1,078
Deferred income taxes	5	4
Pension and other postretirement benefits	254	326
Other liabilities	164	183
Total liabilities	1,923	2,006
Stockholders’ Equity:
Preferred stock – $1 par value, authorized 36,000,000 shares; outstanding - none	0	0
Common stock – $0.10 par value; authorized 200,000,000 shares; issued: 2018 and 2017 - 146,513,000 shares	15	15
Treasury stock at cost; 2018 - 6,442,000 shares and 2017 - 5,571,000 shares	(200)	(169)
Additional paid-in capital	3,030	3,057
Accumulated other comprehensive loss	(383)	(389)
Retained earnings (accumulated deficit)	(543)	(669)
Total stockholders’ equity	1,919	1,845
Total liabilities and stockholders’ equity	$ 3,842	$ 3,851