![GRAPHIC](https://capedge.com/proxy/8-K/0001104659-12-015818/g65631mmi026.gif)
| Appendix A: Non-GAAP Reconciliations 26 Georgia Gulf supplements its financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP) with Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization, cash and non-cash restructuring charges and certain other charges, if any, related to financial restructuring and business improvement initiatives, gain (loss) on substantial modification of debt and sales of assets, and goodwill, intangibles, and other long-lived asset impairments) because investors commonly use Adjusted EBITDA as a main component of valuation analysis of cyclical companies such as Georgia Gulf. Adjusted EBITDA is not a measurement of financial performance under GAAP and should not be considered as an alternative to net income as a measure of performance or to cash provided by operating activities as a measure of liquidity. In addition, our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited. A reconciliation of net income (loss) determined in accordance with GAAP to Adjusted EBITDA is provided below. Other for all years consists of loan cost amortization which is included in both the depreciation and amortization expense line and interest expense line above. Other for the year ended December 31, 2009 also includes $13.9 million of equity compensation related to the 2009 equity and performance incentive plan, $13.1 million of operational and financial restructuring consulting fees, partially offset by $9.6 million of loan cost amortization. Other for the year ended December 31, 2011 also includes $3.0 million acquisition costs and inventory purchase accounting adjustment, partially offset by $4.4 million reversal of non-income tax reserves. ($000s) 2011 2010 2009 2008 Net income (loss) $57,757 $42,678 $131,059 ($255,170) Provision (benefit) for income taxes (4,217) 1,279 94,492 (21,695) Interest income (280) (322) (583) (1,308) Gain on debt exchange — — (400,835) — Loss on redemption and other debt costs 4,908 — 42,797 — Interest expense 65,645 69,795 131,102 134,513 Depreciation and amortization expense 101,522 99,691 117,690 143,718 Long-lived asset impairment charges 8,318 — 21,804 175,201 Restructuring costs 3,271 102 6,858 21,973 (Gains) losses on sale of assets (1,150) — 62 (27,282) Other (a) (5,445) (4,769) 17,069 (6,898) Adjusted EBITDA $230,329 $208,454 $161,515 $163,052 Year ended December 31, |