Company: OC
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001370946-25-000077
Chunk: 142

Company: Owens Corning
Filing Date: 2025-02-24
Form: 10-K
Item: Item 1
Chunk 142
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 of ContentsITEM 7.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)

Adjusted Earnings Before Interest and Taxes (“Adjusted EBIT”)

Adjusted EBIT is a non-GAAP measure that excludes certain items that management does not allocate to our segment results because it believes they are not representative of the Company’s ongoing operations. Adjusted EBIT is used internally by the Company for various purposes, including reporting results of operations to the Board of Directors of the Company, analysis of performance and related employee compensation measures. Although management believes that these adjustments result in a measure that provides a useful representation of our operational performance, the adjusted measure should not be considered in isolation or as a substitute for Net earnings (loss) attributable to Owens Corning as prepared in accordance with accounting principles generally accepted in the United States.

Adjusting (expense) income items to EBIT are shown in the table below:

 Twelve Months Ended December 31,(In millions)20242023Restructuring costs$(86)$(169)Acquisition-related integration costs(83)— Gains on sale of certain precious metals19 2 Loss on sale of business(91)— Strategic review-related charges(46)— Recognition of acquisition inventory fair value step-up(18)— Pension settlement losses— (145)Impairment due to strategic review(483)— Acquisition-related transaction costs(49)— Gain on sale of Santa Clara, California site— 189 Paroc marine recall(58)(15)Impairment of venture investments$(15)$— Total adjusting items$(910)$(138)

The reconciliation from Net earnings attributable to Owens Corning to EBIT and Adjusted EBIT is shown in the table below:

 Twelve Months Ended December 31,(In millions)20242023NET EARNINGS ATTRIBUTABLE TO OWENS CORNING$647 $1,196 Net loss attributable to non-redeemable and redeemable noncontrolling interests— (3)NET EARNINGS647 1,193 Equity in net earnings of affiliates6 3 Income tax expense275 401 EARNINGS BEFORE TAXES916 1,591 Interest expense, net212 76 EARNINGS BEFORE INTEREST AND TAXES1,128 1,667 Less: Adjusting items from above(910)(138)ADJUSTED EBIT$2,038 $1,805 

Segment