Company: OC
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001370946-25-000077
Chunk: 384

Company: Owens Corning
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 384
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 (continued)7.    ACQUISITIONS (continued)

Masonite's operating results and preliminary purchase price allocation have been included in the Company's newly established Doors reportable segment from May 15, 2024, the effective date of the Arrangement, within the Consolidated Financial Statements. Doors contributed revenues of $1,448 million and earnings of $74 million to the Company for the period from May 15, 2024 to December 31, 2024. Please refer to Note 2 of the Consolidated Financial Statements for further information.For the twelve months ended months ended December 31, 2024, the Company incurred $49 million of transaction costs, related to the Arrangement. These expenses are included in Other expense, net on the Company's Consolidated Statements of Earnings.The fair value of the total purchase consideration transferred was determined as follows:(In millions)Fair Value of Purchase Consideration      Closing cash consideration$2,935 Pre-combination vesting portion of fair value of Masonite outstanding equity awards converted to Owens Corning time vesting RSUs35Repayment of Masonite term loan facility216Total transaction consideration$3,186 The closing cash as part of preliminary estimated consideration was calculated at the price of $133.00 per outstanding Masonite common share. At the close of the acquisition of Masonite, there were 22.07 million Masonite common shares outstanding.The preliminary estimated fair value of Owens Corning common stock underlying Masonite outstanding equity awards that have been converted into awards with respect to Owens Corning common stock is calculated as follows:(In millions, except share and per share amounts)AmountNumber of Masonite stock awards outstanding (a)639,608 Exchange ratio (b)0.7642Owens Corning equity awards issued for Masonite outstanding equity awards488,778 10-day weighted average closing share price of Owens Corning common stock (c)$174.03 Fair value of Owens Corning time vesting RSUs issued for Masonite outstanding equity awards$85 Less: Estimated fair value allocated to post-transaction compensation expense(50)Fair value of awards included in transaction consideration$35 (a)    Represents the Masonite stock awards that have been converted into Owens Corning equity awards upon completion of the acquisition of Masonite, based on awards outstanding at May 15, 2024. Masonite equity awards include awards issued under various stock incentive plans of Masonite.(b)    The