2021 Owens Corning Sustainability Report | Our Approach | Risk Management | 63 10. Potential product liability and warranty claims, for which we may not accurately estimate related costs, or we may not have sufficient insurance coverage available to cover such claims. 11. Uninsured judgments or a rise in insurance premiums. This may adversely impact our business, financial condition, and results of operations, as we are subject to various legal and regulatory proceedings, including litigation in ordinary course of business. 12. Potentially substantial expenditures related to our liability under and compliance with environmental and emerging product-based laws and regulations. 13. Failure of our intellectual property rights to provide meaningful commercial protection for our products or brands. This could enable third parties to assert that we violate their intellectual property rights, which could adversely impact our business, financial condition, and results of operations. 14. Our level of indebtedness. This could adversely affect our business, financial condition, or results of operations. 15. Downgrades of our credit ratings. 16. If we were required to write down all or part of our goodwill or other indefinite-lived intangible assets, our results of operations or financial condition could be materially adversely affected in a particular period. 17. Ongoing efforts to increase productivity and reduce costs. These may not result in anticipated savings. 18. High levels of fixed costs. This would be incurred regardless of our level of business activity, given that our operations require substantial capital. 19. Failure of hedging activities to address energy price fluctuations to offset increases in those costs or potentially reducing or eliminating the benefits of any decreases in those costs. 20. Price volatility in certain wind-generated U.S. energy markets. 21. Increases in the cost of labor, union organizing activity, labor disputes, and work stoppages at our facilities. This could delay or impede our production, reduce sales of our products, and increase our costs. 22. Significant changes in the factors and assumptions used to measure our defined benefit plan obligations, actual investment returns on pensions assets, and other factors. This could have a negative impact on our financial condition or liquidity. 23. Failure to adequately protect our critical information technology systems. This could materially affect our operations. Risks at Owens Corning, regardless of their relation to sustainability, are addressed through our ERM program. Each business fluidly reviews its risk register to identify new or materially changed risks and address them accordingly with appropriate risk mitigation plans. Opportunities are addressed through the long-range planning process, which has a horizon of three years forward. Retirement Benefits Liabilities We are committed to providing all employees with comprehensive retirement benefits. Generally, we offer these benefits via defined contribution arrangements. However, defined benefit plans may be provided in accordance with local custom to ensure a competitive overall benefits package. Of our defined benefit obligations, 98% are payable through a fund held and maintained separately from the resources of the organization. The Canadian qualified plan is 113% funded, as determined by actuarial valuation within the past 12 months. The U.S. and the U.K. plans are less than 100% funded, also based on actuarial valuation within the past 12 months. These three plans represent 98% of the company’s defined benefit liabilities. Our strategy for the U.S. plan is to contribute at least the minimum required amount each year and ensure that the plan is funded at 80% or greater. Other plans are funded to fully comply with local requirements. Approximately 96% of eligible U.S. employees participate in voluntary retirement savings (defined contribution) programs. Owens Corning provides an automatic 2% contribution based on salary to all U.S. employees’ 401(k) plans. The company also matches up to 6% based on individual contributions; thus, employees who maximize the company match will save 14% of salary toward retirement. New U.S. hires are automatically enrolled in our 401(k) plan. Our 401(k) plan represents approximately 93% of our contributory savings plan globally.