Company: NPO
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001164863-25-000017
Chunk: 29

Company: Enpro Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Item 8
Chunk 29
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Adjusted EBITDA):Interest expense, net8.0 8.2 Income tax expense7.8 1.8 Depreciation and amortization expense25.2 24.6 Restructuring expense0.6 0.8 Environmental reserve adjustments— 0.2 Costs associated with previously disposed businesses0.3 0.3 Acquisition expenses0.2 3.3 Pension expense - non-service cost0.8 — Amortization of the fair value adjustment to acquisition date inventory— 1.7 Foreign exchange losses related to the divestiture of a discontinued operation10.4 0.5 Long-term promissory note reserve2— 4.5 Adjusted EBITDA$67.8 $58.4 

1 In connection with the sale of GGB, accounted for as a discontinued operation, in the fourth quarter of 2022, we issued an intercompany note between  a domestic and foreign entity that is denominated in a foreign currency. As a result of this note, we have recorded losses due to the changes in the foreign exchange rate. This intercompany note was settled in March 2025.

2 We received a long-term promissory note in connection to the sale of a divested business. As part of our regular review of the note, in the first quarter of 2024 we concluded a reserve was needed for expected future credit losses. We will continue to monitor the note regularly and make adjustments to the reserve as needed based on known facts and circumstances. 

Adjusted EBITDA as presented in the table above also represents the amount defined as "EBITDA" under the Indenture. 

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

We are exposed to certain market risks as part of our ongoing business operations, including risks from changes in foreign currency exchange rates and interest rates that could impact our financial condition, results of operations and cash flows. We manage our exposure to these and other market risks through regular operating and financing activities and through the use of derivative financial instruments. We intend to use derivative financial instruments as risk management tools and not for speculative investment purposes. For information about our interest rate risk, see “Quantitative and Qualitative Disclosures about Market Risk – Interest Rate Risk” in our annual report on Form 10-K for the year ended December 31, 2024.

Foreign Currency Risk

We are exposed to foreign