Company: OC
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001370946-25-000077
Chunk: 245

Company: Owens Corning
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 245
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 no impairment for the reporting unit. Management estimates fair value using a discounted cash flow approach from the perspective of a market participant, as well as the market approach. Significant assumptions used to determine fair value of the Composites reporting unit are the revenue growth rates, earnings before interest and taxes (“EBIT”) margins, long-term growth rate, and the discount rate.

The principal considerations for our determination that performing procedures relating to the interim goodwill impairment test of the Composites reporting unit is a critical audit matter are (i) the significant judgment by management when developing the fair value estimate of the Composites reporting unit; (ii) a high degree of auditor judgment, subjectivity and effort in performing procedures and evaluating management’s significant assumptions in the discounted cash flow approach related to revenue growth rates, EBIT margins, the long-term growth rate and discount rate for a portion of the Composites reporting unit; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s goodwill impairment test, including controls over the valuation of the Composites reporting unit. These procedures also included, among others (i) testing management’s process for developing the fair value estimate; (ii) evaluating the appropriateness of the discounted cash flow and market approaches used by management; (iii) testing the completeness and accuracy of data used in the discounted cash flow and market approaches; and (iv) evaluating the reasonableness of the significant assumptions used by management related to the revenue growth rates, EBIT margins, long-term growth rate and discount rate for a portion of the Composites reporting unit. Evaluating management’s assumptions related to the revenue growth rates and EBIT margins for a portion of the Composites reporting unit involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of a portion of the Composites reporting unit; (ii) the consistency with external market and industry data; and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the discounted cash flow and market approaches and (ii) the reasonableness of the long-term growth rate and discount rate assumptions.

/s/ PricewaterhouseCoopers LLPToledo, OhioFebruary 24, 2025

We have served as the Company’s auditor