Company: OC
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001370946-25-000241
Chunk: 141

Company: Owens Corning
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 141
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 capitalized financing cost amortization for the 2027, 2034 and 2054 senior notes that were issued to pay off the 364-Day Credit Facility in the comparative pro forma period, see Note 12 for further detail. Finally, adjustments were made to remove interest expense for the pro forma period related to the Masonite term loan facility that was paid off at closing as part of the consideration for the Arrangement.Significant adjustments to the pro forma financial information are as follows:1.Net sales were decreased by $119 million for the nine months ended September 30, 2024, to remove the sales of the Architectural segment that was sold by Masonite prior to the close of the Arrangement.2.Net earnings were increased by $56 million for the nine months ended September 30, 2024, to remove transaction costs incurred by Masonite.3.Net earnings were increased by $49 million for the nine months ended September 30, 2024, to move transaction costs incurred by the Company to the beginning of the comparative period.4.Net earnings were decreased by $49 million for the nine months ended September 30, 2024, to reflect the interest expense, discount amortization, and capitalized financing cost amortization for the 2027, 2034 and 2054 senior notes that were issued to pay off the 364-Day Credit Facility.5.Net earnings were decreased by $91 million for the nine months ended September 30, 2024, to give effect to the tax impact of pro forma adjustments.The pro forma financial information does not reflect any anticipated synergies or dis-synergies, operating efficiencies or cost savings that may result from the Arrangement and integration costs that may be incurred.

9.    DIVESTITURES

On November 4, 2024, the Company entered into a related party agreement to sell its building materials business in China and Korea to a member of the business' management team. The disposal further aligns with the strategy to reshape the Company to focus on residential and commercial building products in North America and Europe. The transaction included six insulation manufacturing facilities in China and a roofing manufacturing facility in Korea. The building materials business, within the Insulation segment, represented annual revenues of approximately $130 million. The Company completed the transaction in July 2025 and is in the process of finalizing certain related transfers, which are expected to be completed by the end of the first quarter of fiscal year 2026. During the fourth quarter of