Exhibit 99.3
| ITEM 6. | SELECTED FINANCIAL DATA |
| Successor | Predecessor | |||||||||||||||||||||||||
| Twelve Months Ended December 31, | Two Months Ended December 31, 2006(c) | Ten Months Ended October 31, 2006(d) | Twelve Months Ended December 31, | |||||||||||||||||||||||
| 2008(a) | 2007(b) | 2005(e) | 2004(f) | |||||||||||||||||||||||
| (in millions, except per share data) | ||||||||||||||||||||||||||
Statement of Earnings (Loss) | ||||||||||||||||||||||||||
Net sales | $ | 5,847 | $ | 4,978 | $ | 772 | $ | 4,627 | $ | 5,177 | $ | 4,626 | ||||||||||||||
Cost of sales | 4,925 | 4,202 | 688 | 3,713 | 4,079 | 3,674 | ||||||||||||||||||||
Gross margin | 922 | 776 | 84 | 914 | 1,098 | 952 | ||||||||||||||||||||
Marketing and administrative expenses | 617 | 498 | 86 | 408 | 521 | 490 | ||||||||||||||||||||
Science and technology expenses | 69 | 63 | 30 | 48 | 56 | 44 | ||||||||||||||||||||
Restructuring costs | 7 | 28 | 20 | 12 | — | — | ||||||||||||||||||||
Chapter 11-related reorganization items | 1 | — | 10 | 45 | 45 | 54 | ||||||||||||||||||||
Provision (credit) for asbestos litigation claims (recoveries) | — | — | — | (13 | ) | 4,267 | (24 | ) | ||||||||||||||||||
Employee emergence equity program expense | 26 | 37 | 6 | — | — | — | ||||||||||||||||||||
(Gain) loss on sale of fixed assets and other | (32 | ) | 6 | 8 | (65 | ) | (18 | ) | (2 | ) | ||||||||||||||||
Earnings (loss) from continuing operations before interest and taxes | 234 | 144 | (76 | ) | 479 | (3,773 | ) | 390 | ||||||||||||||||||
Interest expense (income), net | 116 | 122 | 29 | 241 | 740 | (12 | ) | |||||||||||||||||||
Gain on settlement of liabilities subject to compromise | — | — | — | (5,864 | ) | — | — | |||||||||||||||||||
Fresh-start accounting adjustments | — | — | — | (2,919 | ) | — | — | |||||||||||||||||||
Earnings (loss) from continuing operations before taxes | 118 | 22 | (105 | ) | 9,021 | (4,513 | ) | 402 | ||||||||||||||||||
Income tax expense (benefit) | 931 | (8 | ) | (35 | ) | 991 | (400 | ) | 211 | |||||||||||||||||
Earnings (loss) from continuing operations before equity in net earnings (loss) of affiliates | (813 | ) | 30 | (70 | ) | 8,030 | (4,113 | ) | 191 | |||||||||||||||||
Equity in net earnings (loss) of affiliates | 2 | (1 | ) | — | 4 | (5 | ) | (2 | ) | |||||||||||||||||
Earnings (loss) from continuing operations | (811 | ) | 29 | (70 | ) | 8,034 | (4,118 | ) | 189 | |||||||||||||||||
Discontinued operations (g) | ||||||||||||||||||||||||||
Earnings (loss) from discontinued operations, net of tax of $0, $5, $(5), $45, $24 and $25, respectively | — | 9 | (11 | ) | 127 | 35 | 36 | |||||||||||||||||||
Gain on sale of discontinued operations, net of tax of $0, $40, $0, $0, $0, and $0, respectively | — | 60 | — | — | — | — | ||||||||||||||||||||
Net earnings (loss) | (811 | ) | 98 | (81 | ) | 8,161 | (4,083 | ) | 225 | |||||||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 2 | 3 | 4 | 4 | (1 | ) | 6 | |||||||||||||||||||
Net earnings (loss) attributable to Owens Corning | $ | (813 | ) | $ | 95 | $ | (85 | ) | $ | 8,157 | $ | (4,082 | ) | $ | 219 | |||||||||||
Amounts attributable to Owens Corning common stockholders: | ||||||||||||||||||||||||||
Earnings (loss) from continuing operations, net of tax | $ | (813 | ) | $ | 26 | $ | (74 | ) | $ | 8,030 | $ | (4,117 | ) | $ | 183 | |||||||||||
Discontinued operations, net of tax | — | 69 | (11 | ) | 127 | 35 | 36 | |||||||||||||||||||
Net earnings (loss) | $ | (813 | ) | $ | 95 | $ | (85 | ) | $ | 8,157 | $ | (4,082 | ) | $ | 219 | |||||||||||
Basic earnings (loss) per common share | ||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to Owens Corning common stockholders | $ | (6.38 | ) | $ | 0.20 | $ | (0.58 | ) | $ | 145.20 | $ | (74.45 | ) | $ | 3.31 | |||||||||||
Earnings (loss) from discontinued operations attributable to Owens Corning common stockholders | $ | — | $ | 0.54 | $ | (0.09 | ) | $ | 2.30 | $ | 0.63 | $ | 0.65 | |||||||||||||
Diluted earnings (loss) per common share | ||||||||||||||||||||||||||
Earnings (loss) from continuing operations attributable to Owens Corning common stockholders | $ | (6.38 | ) | $ | 0.20 | $ | (0.58 | ) | $ | 134.06 | $ | (74.45 | ) | $ | 3.06 | |||||||||||
Earnings (loss) from discontinued operations attributable to Owens Corning common stockholders | $ | — | $ | 0.53 | $ | (0.09 | ) | $ | 2.12 | $ | 0.63 | $ | 0.60 | |||||||||||||
Weighted-average common shares | ||||||||||||||||||||||||||
Basic | 127.4 | 128.4 | 128.1 | 55.3 | 55.3 | 55.3 | ||||||||||||||||||||
Diluted | 127.4 | 129.0 | 128.1 | 59.9 | 55.3 | 59.9 | ||||||||||||||||||||
Statement of Cash Flows | ||||||||||||||||||||||||||
Net cash flow provided by (used for) operating activities | $ | 193 | $ | 182 | $ | 15 | $ | (1,903 | ) | $ | 746 | $ | 449 | |||||||||||||
Additions to plant and equipment | $ | (434 | ) | $ | (247 | ) | $ | (77 | ) | $ | (284 | ) | $ | (288 | ) | $ | (232 | ) | ||||||||
Balance Sheet Data | ||||||||||||||||||||||||||
Total assets | $ | 7,222 | $ | 7,851 | $ | 8,450 | $ | 8,857 | $ | 8,861 | $ | 7,749 | ||||||||||||||
Long-term debt, net of current portion | $ | 2,172 | $ | 1,993 | $ | 1,296 | $ | 1,300 | $ | 36 | $ | 38 | ||||||||||||||
Liabilities subject to compromise | $ | — | $ | — | $ | — | $ | — | $ | 13,520 | $ | 9,171 | ||||||||||||||
Total equity (deficit) | $ | 2,780 | $ | 4,004 | $ | 3,710 | $ | 3,911 | $ | (7,974 | ) | $ | (3,921 | ) | ||||||||||||
No dividends were declared or paid for any of the periods presented above.
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| ITEM 6. | SELECTED FINANCIAL DATA (continued) |
| (a) | During 2008, the Successor recorded $75 million of integration costs related to the Acquisition, $26 million of expenses related to our employee emergence equity program, charges of $10 million related to certain asset impairments, $9 million in expenses related to leases of certain precious metals used in production tooling, charges of $7 million for restructuring and a gain of $48 million related to the sale of certain precious metals used in production tooling. |
| (b) | During 2007, the Successor recorded charges of $54 million for restructuring and other charges (comprised of $28 million of restructuring charges and $26 million of other costs, which is inclusive of $21 million of accelerated depreciation), charges of $60 million related to certain asset impairments, $28 million of transaction costs related to the Acquisition, charges of $12 million related to the impact of inventory write-up due to the Acquisition, charges of $5 million related to the impact of inventory write-up in accordance with fresh-start accounting, charges of $1 million related to the write-off of in-process research and development due to the Acquisition, losses related to the exit of our HOMExperts service line of $7 million and $37 million of expenses related to our employee emergence equity program. |
| (c) | During the two months ended December 31, 2006, the Successor recorded charges of $32 million for restructuring and other charges (comprised of $20 million of restructuring charges and $12 million of other costs), $6 million of transaction costs related to the Acquisition, charges of $10 million for Chapter 11-related reorganization expenses, charges of $91 million related to the impact of fresh-start accounting (comprised of $70 million related to the impact of inventory write-up and $21 million related to the write-off of in-process research and development) and $6 million of expenses related to our employee emergence equity program. |
| (d) | During the ten months ended October 31, 2006, the Predecessor recorded income of $34 million for restructuring and other credits (comprised of $12 million of restructuring charges, $45 million of gains on the sale of metal, and $1 million of other gains), $7 million of transaction costs related to the Acquisition, charges of $45 million for Chapter 11-related reorganization expenses, income of $13 million for asbestos-related insurance recoveries and $247 million for accrued post petition interest. |
| (e) | During 2005, the Predecessor recorded charges of $4,267 million for additional provision for asbestos liability claims net of asbestos-related insurance recoveries, charges of $735 million for accrued post petition interest for the period from the Petition Date through December 31, 2005 on the Predecessor’s primary pre-petition bank credit facility, charges of $45 million for Chapter 11 related reorganization expenses, income of $13 million due to changes in the Ohio tax law during 2005, $7 million of gains from the sale of metal and gains of $5 million on the early extinguishment of Asian debt. |
| (f) | During 2004, the Predecessor recorded income of $5 million for restructuring and other charges, charges of $54 million for Chapter 11 related reorganization expenses, and income of $24 million for asbestos-related insurance recoveries. |
| (g) | Discontinued operations consist of the Company’s Siding Solutions business and Fabwel unit which were both sold during the third quarter of 2007. |
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