Company: OC
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001370946-25-000205
Chunk: 47

Company: Owens Corning
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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OWENS CORNING AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)(unaudited)

The initial fair value for all internal company-based metric PSUs assumes that the performance goals will be achieved and is based on the grant date stock price. This assumption is monitored quarterly and if it becomes probable that such goals will not be achieved or will be exceeded, compensation expense recognized will be adjusted and previous surplus compensation expense recognized will be reversed or additional expense will be recognized. The expected term represents the period from the grant date to the end of the three-year performance period. Pro-rata vesting may be utilized in the case of death, disability or retirement and awards, if earned, will be paid at the end of the three-year period.The following table provides a summary of the grant date fair values of the internal Company-based metric PSUs:Six Months Ended June 30,20252024Grant date fair value of units granted$171.94 $147.18 External-based metricsThe external-based metric PSUs vest after a three-year period. Outstanding grants issued in or after 2023 are based on the Company’s total stockholder return relative to a peer group. The amount of stock distributed will vary from 0% to 200% of PSUs awarded depending on the relative stockholder return performance. The fair value of external-based metric PSUs has been estimated at the grant date using a Monte Carlo simulation that uses various assumptions.The following table provides a summary of the assumptions for PSUs granted in 2025 and 2024:Six Months Ended June 30,20252024Expected volatility32.78%33.88%Risk free interest rate4.14%3.94%Expected term (in years)2.902.91Grant date fair value of units granted$221.54$195.95The risk-free interest rate was based on zero-coupon United States Treasury STRIPS at the grant date. The expected term represents the period from the grant date to the end of the three-year performance period.PSU SummaryAs of June 30, 2025, there was $26 million total unrecognized compensation cost related to PSUs. That cost is expected to be recognized over a weighted-average period of 1.98 years. The following table summarizes the Company’s PSU activity:Number of PSUsWeighted-AverageGrant DateFair ValueBalance at December 31, 2024219,075 $117.23 Granted120,321 188.47