Company: OC
Filing Date: 2025-05-07
Form Type: 10-Q
Source: 0001628280-25-022858
Chunk: 43

Company: Owens Corning
Filing Date: 2025-05-07
Form: 10-Q
Item: Part I, Item 1
Chunk 43
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IDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)(unaudited)

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:Three Months Ended March 31,20252024Expected 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 March 31, 2025, there was $35 million total unrecognized compensation cost related to PSUs. That cost is expected to be recognized over a weighted-average period of 2.24 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 Vested— — Forfeited— — Balance at March 31, 2025339,396 $148.85 Employee Stock Purchase PlanThe Owens Corning Employee Stock Purchase Plan (“ESPP”) is a tax-qualified plan under Section 423 of the Internal Revenue Code. The purchase price of shares purchased under the ESPP is equal to 85% of the lower of the fair market value of shares of Owens Corning common stock at the beginning or ending of the offering period, which is a six-month period ending on May 31 and November 30 of each year. On April 16, 2020, the Company’s stockholders approved the Amended and Restated Owens Corning Employee Stock Purchase Plan, which increased the number of shares available for issuance under the plan by 4.2 million shares. As of March 31