Company: OC
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001370946-25-000241
Chunk: 140

Company: Owens Corning
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 140
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 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 nine months ended September 30, 2024, assuming the acquisition had occurred on January 1, 2023.Nine Months Ended September 30,(In millions)2024Pro Forma net sales from continuing operations$8,177 Pro Forma net earnings from continuing operations attributable to Owens Corning$927 

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Table of ContentsOWENS CORNING AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)(unaudited)

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