Company: OC
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001370946-25-000241
Chunk: 137

Company: Owens Corning
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 137
---
ated Financial Statements for further information.During the three and nine months ended September 30, 2025, the Company incurred no transaction costs. During the three and nine months ended September 30, 2024, the Company incurred $2 million and $49 million of transaction costs, respectively. During the three and nine months ended September 30, 2025, the Company incurred $9 million and $15 million of integration costs, respectively, related to its acquisition of Masonite. During the three and nine months ended September 30, 2024, the Company incurred $53 million and $74 million of integration costs, respectively, related to its acquisition of Masonite. 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 ConsiderationClosing cash consideration$2,935 Pre-combination vesting portion of fair value of Masonite outstanding equity awards converted to Owens Corning time vesting RSUs35 Repayment of Masonite term loan facility216 Total transaction consideration$3,186 The closing cash as part of 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 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: 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 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 exchange rate was determined by the consideration amount divided by the volume weighted average closing sale