Company: OC
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-022858
Chunk: 26

Company: Owens Corning
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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 net$1,358 DebtThe fair value of Masonite's unsecured senior notes was determined using the market approach, based on the trading value of the notes in the market. Joint Ventures and Noncontrolling InterestsThe Company's acquisition of Masonite included joint ventures with Dominance Industries, Inc., 45% owned, and Vanair Design Inc., 30% owned. As a result of the Masonite acquisition, we also recognized a 25% noncontrolling interest in Sacopan Inc. for the portion owned by a third party and a 50% non-controlling interest in Magna Foremost SDN BHD for the portion owned by a third party. The value of these investments and non-controlling interests were determined using an equally weighted value from the income approach and the market approach.Pro Forma Financial Information from Continuing OperationsThe following table summarizes, on an unaudited pro forma basis, the combined results of operations from continuing operations of the Company for the three months ended March 31, 2024, assuming the acquisition had occurred on January 1, 2023.Three Months Ended March 31,(In millions)2024Pro Forma net sales from continuing operations$2,607 Pro Forma net earnings from continuing operations attributable to Owens Corning$323 The pro forma financial information includes certain adjustments to adhere to the Company's accounting policies and adjustments to the historical results with pro forma adjustments, net of tax, that assume the acquisition occurred on January 1, 2023. This includes removing the results of the Architectural segment that was sold by Masonite prior to the close of the Arrangement, increased depreciation expense to reflect the fair value of property, plant and equipment, and increased amortization expense related to the fair value of identifiable amortizable intangible assets. In addition, adjustments were made to reflect the interest, discount amortization, and capitalized financing cost amortization for the 2027, 2034 and 2054 senior notes that were issued to pay off the 364-Day Credit Facility in the comparative pro forma period, see Note 12 for further detail. Finally, adjustments were made to remove interest expense for the pro forma period related to the Masonite term loan facility that was paid off at closing as part of the consideration for the Arrangement. There were no significant adjustments to the pro forma financial information for the three months ended March 31, 2024.The pro forma financial information does not reflect any anticipated synergies or dis-synergies,