Company: OC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001370946-25-000205
Chunk: 131

Company: Owens Corning
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 8
Chunk 131
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 reduced the value of acquired intangibles by $221 million, as we continued to obtain information used to determine the fair value. There were no material impacts to the Consolidated Statements of Earnings as a result of this adjustment. The fair value of customer relationships was determined using the multi-period excess earnings method. Key assumptions under this method are the revenue growth rate, adjusted EBITDA margin (including the adjusted terminal EBITDA margin), customer attrition rate, discount rate, tax rate and contributory asset charges. The fair value of trade names were determined using the relief from royalty method. Key assumptions under this method are future cash flow estimates, royalty rate and discount rate.(In millions, except useful life amounts)Estimated Useful Life (in years)Estimated Asset Fair Value Customer relationships10 - 21$979 Technology5120 Trademarks and trade names (indefinite-lived)Indefinite240 Trademarks and trade names1019 Identifiable intangible assets, 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 and six months ended June 30, 2024, assuming the acquisition had occurred on January 1, 2023.Three Months Ended June 30,Six Months Ended June 30,(In millions)20242024Pro Forma net sales from continuing operations$2,807 $5,414 Pro Forma net earnings from continuing operations attributable to Owens Corning$308 $631 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