-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JavAAc5K2NquydyJu0hJlyYNk2zz4Kdy5XfonMzZCNLHksOs8NZoTcPlivwIS3cq sFH4ipEoUI8tKp7CyStBRQ== 0000950137-06-001142.txt : 20060131 0000950137-06-001142.hdr.sgml : 20060131 20060131105807 ACCESSION NUMBER: 0000950137-06-001142 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060130 ITEM INFORMATION: Results of Operations and Financial Condition FILED AS OF DATE: 20060131 DATE AS OF CHANGE: 20060131 FILER: COMPANY DATA: COMPANY CONFORMED NAME: USG CORP CENTRAL INDEX KEY: 0000757011 STANDARD INDUSTRIAL CLASSIFICATION: CONCRETE GYPSUM PLASTER PRODUCTS [3270] IRS NUMBER: 363329400 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08864 FILM NUMBER: 06564502 BUSINESS ADDRESS: STREET 1: 125 SOUTH FRANKLIN STREET STREET 2: DEPARTMENT 188 CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 312-606-4000 MAIL ADDRESS: STREET 1: DEPARTMENT #188 STREET 2: 125 SOUTH FRANKLIN STREET CITY: CHICAGO STATE: IL ZIP: 60606 8-K/A 1 c01999a1e8vkza.htm AMENDMENT TO CURRENT REPORT e8vkza
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K/A
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) January 30, 2006.
USG Corporation
(Exact name of registrant as specified in its charter)
Commission File Number: 1-8864
     
Delaware
  36-3329400
 
   
(State or other jurisdiction of
  (IRS Employer
incorporation or organization)
  Identification No.) 
 
    
125 South Franklin Street, Chicago, Illinois
  60606-4678
 
(Address of principal executive offices)
  (Zip Code)
 
    
Registrant’s telephone number, including area code
  (312) 606-4000
 
   
 
    
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13c-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

TABLE OF CONTENTS

Item 2.02 Results of Operations and Financial Condition
SIGNATURE
EXHIBIT INDEX
Press Release

Table of Contents

   Item 2.02 Results of Operations and Financial Condition.
     On January 30, 2006, USG Corporation issued a press release containing earnings information for the quarter ended December 31, 2005. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated herein by reference.
SIGNATURE
     Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
 
      USG CORPORATION
 
      Registrant
 
        
Date: January 30, 2006
  By:   /s/ Richard H. Fleming
 
       
 
      Richard H. Fleming,
 
      Executive Vice President
 
      and Chief Financial Officer

 

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EXHIBIT INDEX
         
Exhibit No.   Exhibit    
99.1
  USG Corporation press release dated January 30, 2006.    

 

EX-99.1 2 c01999a1exv99w1.htm PRESS RELEASE exv99w1
 

Exhibit 99.1
Media Inquires: (312) 606-4356
Investor Relations: (312) 606-4125
USG CORPORATION REPORTS RECORD FOURTH QUARTER
2005 NET SALES OF $1.3 BILLION;
CHARGE FOR PLAN TO EXIT BANKRUPTCY RESULTS IN NET LOSS
     Fourth Quarter 2005 vs. Fourth Quarter 2004
  §   Net sales increased $166 million, or 14 percent
 
  §   Record product shipments
     CHICAGO, January 30, 2006 — USG Corporation (NYSE:USG), a leading building products company, today reported fourth quarter 2005 net sales of $1.3 billion, an increase of $166 million, or 14 percent, compared with the fourth quarter of 2004. USG achieved a record $5.1 billion in net sales for the full year, exceeding the previous year’s record sales by $630 million, or 14 percent. Record shipments of the products sold by the Corporation’s North American Gypsum and Building Products Distribution operating segments, as well as improved selling prices for Sheetrock® Brand gypsum wallboard, boosted results in the fourth quarter and full year of 2005.
     The Corporation’s consolidated results included a pretax charge of $3.1 billion ($1.9 billion, or $43.39 per share, after tax) in the fourth quarter in conjunction with its plan to resolve its asbestos personal injury liability and emerge from bankruptcy. Consequently, net losses of $1.8 billion (or
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USG CORPORATION REPORTS FOURTH QUARTER RESULTS/2
$39.94 per share) and $1.4 billion (or $32.92 per share) were recorded in the fourth quarter and full year 2005, respectively. The charge is related to an increase in USG’s reserve for the estimated cost of resolving asbestos-related liabilities, including asbestos personal injury claims, asbestos property damage claims, and other asbestos related claims and legal expenses. The fourth quarter net loss also included a noncash, after-tax charge of $11 million, or $0.25 per share, ($0.26 per share for the full year 2005) related to the adoption of Financial Accounting Standards Board (FASB) Interpretation No. 47, “Accounting for Conditional Asset Retirements” (FIN 47).
     Excluding these charges, fourth quarter 2005 net earnings were $165 million and earnings per share were $3.70, representing increases of $80 million and $1.73, respectively, versus the prior period. Full year 2005 net earnings excluding the charges were a record $510 million, or $11.70 per share.* This compared with 2004 net earnings and earnings per share of $312 million and $7.26, respectively.
     “USG’s businesses finished the year with solid performance,” said USG Corporation Chairman and CEO, William C. Foote. “We delivered on our promise to profitably grow our core businesses
 
*   References to net earnings excluding the asbestos charge and change in accounting principle related to the adoption of FIN 47 (“Accounting for Conditional Asset Retirements”) are non-GAAP measures. Management believes this information provides investors with a more useful comparison of the Corporation’s ongoing business performance. See attached schedule, “Reconciliation of Non-GAAP Financial Measures,” for a reconciliation of net earnings before and after the asbestos charge and change in accounting principle.
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USG CORPORATION REPORTS FOURTH QUARTER RESULTS/3
and pursue select growth opportunities, and our continued focus on margin improvement helped us manage persistent cost pressures.”
     USG announced today in a separate press release that it has reached an agreement in its bankruptcy to resolve all present and future asbestos-related personal injury claims. The agreement will be incorporated into a plan of reorganization that, if approved by the courts overseeing USG’s bankruptcy, would allow it to emerge from bankruptcy. “I am pleased that we accomplished what we set out to do when we filed Chapter 11 in 2001. Along the way, we’ve fulfilled our goals of maintaining a strong organization and sustaining our market leadership and operational excellence,” Foote said.
     “The Corporation’s markets continue to look favorable for 2006, with residential construction expected to moderate but remain strong,” Foote added. “In this environment, USG will develop new and innovative products and pursue growth opportunities to further our strategy of creating leading-edge building solutions.”
Business Outlook
     The strong level of growth in new housing and residential remodeling during 2005 resulted in a second consecutive year of all-time record industry shipments of gypsum wallboard. The outlook for the housing markets remains positive in 2006. Housing starts are expected to remain solid, but moderate from last year’s level due to increasing mortgage interest rates, rising inventories of unsold homes and tightening lending standards. Nonetheless, wallboard industry capacity utilization rates are expected to remain high. Commercial markets, the major markets for ceiling products, are expected to grow modestly. Cost pressures, especially relating to prices of energy and raw materials, will likely continue in the near term.
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USG CORPORATION REPORTS FOURTH QUARTER RESULTS/4

Core Business Results

North American Gypsum
     USG’s North American Gypsum business recorded net sales of $851 million, an increase of 17 percent compared with the fourth quarter of 2004. An operating loss of $2.9 billion in the fourth quarter resulted from the previously mentioned $3.1 billion charge associated with its plan to emerge from bankruptcy. Fourth quarter operating profit excluding the charge was $200 million, an increase of $80 million, or 67 percent, compared with $120 million in the same period a year ago.
     United States Gypsum Company net sales of $752 million were $107 million higher in the fourth quarter versus the $645 million attained in last year’s fourth quarter. An operating loss of $2.9 billion in the fourth quarter included the asbestos charge. Excluding the charge, fourth quarter operating profit rose 77 percent to $172 million compared with the same period last year. The increases in net sales and operating profit (excluding the charge) were primarily attributable to higher realized selling prices and record fourth quarter shipments for Sheetrock Brand gypsum wallboard. Also contributing to the improved results was favorable performance for the company’s complementary product lines.
     Strong sales growth in the fourth quarter and the year was driven by a near record level of housing starts and growth in the repair and remodeling segment, fueled by strong existing home sales. As a result, U.S. Gypsum sold record volumes of Sheetrock Brand gypsum wallboard in the fourth quarter and full year. The company’s plants, along with the industry, ran at close to capacity throughout the year, even as the company added production capacity at some of its high-speed
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USG CORPORATION REPORTS FOURTH QUARTER RESULTS/5
plants. U.S. Gypsum’s wallboard shipments in the fourth quarter totaled more than 2.8 billion square feet, up from 2.7 billion square feet in last year’s record fourth quarter. For all of 2005, U.S. Gypsum’s wallboard shipments were 11.3 billion square feet, up 3 percent from last year’s record level.
     While U.S. Gypsum has realized stronger demand, the company has also experienced significant cost pressures, as energy, freight and raw material prices have increased significantly. These cost increases have been offset by increased industry pricing, which reflects the strong demand and high industry utilization rates. U.S. Gypsum’s nationwide average realized price of gypsum wallboard was $155.38 per thousand square feet during the fourth quarter, 18 percent higher than in the same period a year ago and 5 percent higher than in the preceding quarter.
     The gypsum business of Canada-based CGC Inc. reported fourth quarter 2005 net sales of $85 million, an increase of $2 million over the same period a year ago. The increase in sales was due primarily to the favorable effects of currency translation, which offset lower shipments and selling prices for Sheetrock Brand gypsum wallboard. Operating profit was $15 million, the same level attained during last year’s fourth quarter.
Worldwide Ceilings
     USG’s Worldwide Ceilings business reported fourth quarter 2005 net sales and operating profit of $178 million and $15 million, respectively. Net sales improved by $14 million, while operating profit more than doubled compared with last year’s fourth quarter.
     USG Interiors, Inc., USG’s domestic ceilings business, reported net sales of $124 million in the quarter, an increase of $9 million compared with the same period a year ago. Operating profit for the fourth quarter was $11 million versus $2 million in the fourth quarter of 2004. The improvement
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USG CORPORATION REPORTS FOURTH QUARTER RESULTS/6
was due to higher selling prices for ceiling tile, improved grid volumes and the effect of LIFO inventory reserve adjustments.
     USG International reported net sales and operating profit of $51 million and $1 million, respectively, in the fourth quarter of 2005. This compared with net sales of $50 million and operating profit of $3 million for the same period a year ago. The decline in operating profit was due primarily to higher prices for steel used in manufacturing ceiling grid in Europe. The ceilings division of Canada-based CGC Inc. attained net sales of $15 million and $3 million in operating profit. This compared with $11 million in net sales and $2 million in operating profit in last year’s fourth quarter. The improvement in net sales and operating profit was largely attributable to increased shipments and higher prices for ceiling tile and grid, as well as the favorable effects of currency translation.
Building Products Distribution
     L&W Supply Corporation, USG’s building products distribution business, reported record fourth quarter 2005 net sales of $542 million and operating profit of $43 million. Net sales increased $90 million, while operating profit improved by $16 million, compared with the fourth quarter of 2004. The improved results reflect higher selling prices for gypsum wallboard and record fourth quarter sales volumes of gypsum wallboard and complementary products. L&W’s fourth quarter gypsum wallboard prices were up 21 percent compared with the same period last year. Gypsum wallboard shipments increased 17 percent versus the fourth quarter of 2004.
Other Consolidated Information
     Selling and administrative expenses totaled $88 million and $352 million in the fourth quarter and full year 2005, respectively. These expenses were up $9 million versus the fourth quarter of
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USG CORPORATION REPORTS FOURTH QUARTER RESULTS/7
2004 and up $35 million versus all of 2004. For the fourth quarter and full year 2005, selling and administrative expenses as a percent of net sales were 6.6 percent and 6.8 percent, respectively. This compared with the 2004 selling and administrative expenses as a percent of net sales of 6.8 percent and 7.0 percent for the fourth quarter and full year, respectively. The increase in 2005 selling and administrative expenses versus 2004 primarily reflected compensation and benefits, including retention and incentive compensation, and higher funding for marketing and growth initiatives.
     For the fourth quarter, USG’s Chapter 11 reorganization expenses of $2 million reflected $13 million of legal and financial advisory fees, offset largely by $11 million of interest income earned by the USG companies in Chapter 11. Under AICPA Statement of Position 90-7 (“SOP 90-7”), “Financial Reporting by Entities in Reorganization under the Bankruptcy Code,” interest income on USG’s bankruptcy-related cash is offset against Chapter 11 reorganization expenses. In 2005, USG’s Chapter 11 reorganization expenses totaled $4 million, reflecting $36 million of legal and financial advisory fees, partially offset by $32 million of bankruptcy-related interest income.
     Interest expense for the fourth quarter and 12 months of 2005 was $1 million and $5 million, the same levels as attained in the respective 2004 periods. Under SOP 90-7, all of USG’s outstanding debt is classified as liabilities subject to compromise, and interest expense on this debt has not been accrued or recorded since USG’s bankruptcy filing.
     As of December 31, 2005, USG had $1.6 billion of cash, cash equivalents, restricted cash and marketable securities, up from $1.2 billion as of December 31, 2004, and $1.5 billion on September 30, 2005. Capital expenditures for the fourth quarter and 12 months of 2005 were $73 million and $198 million, respectively. Capital expenditures for the same periods in 2004 were $58 million and $138 million, respectively.
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USG CORPORATION REPORTS FOURTH QUARTER RESULTS/8
Chapter 11 Reorganization
     USG and its principal domestic subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code on June 25, 2001. This action was taken to resolve asbestos claims in a fair and equitable manner, protect the long-term value of the businesses and maintain their market leadership positions.
     In a separate press release, USG announced today that it has reached an agreement in its bankruptcy to resolve all present and future asbestos-related personal injury claims against USG and its subsidiaries. The agreement was reached with the Asbestos Personal Injury Claimants Committee and the Court-appointed Representative for Future Asbestos Claimants. The agreement to resolve asbestos personal injury claims is also supported by the committees representing both unsecured creditors and stockholders. Additional details regarding USG’s asbestos agreement are available via the USG Web site (www.usg.com) under “Latest News.”
     A conference call and webcast are being held today at 10:00 A.M. Central Time (11:00 A.M. Eastern) during which USG senior management will discuss the agreement, related matters and the corporation’s results of operations. The conference call and presentation will be webcast simultaneously on the USG Web site in the Investor Information section. The dial-in number for the conference call is 1-800-822-4794. After the live webcast, a replay of the webcast will be available on the USG Web site for 30 days. In addition, a telephonic replay of the call will be available for 30 days. The replay dial-in number is 1-888-203-1112, and the passcode is 1544332.
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USG CORPORATION REPORTS FOURTH QUARTER RESULTS/9
     Information regarding the progress of the bankruptcy, as well as the risks, uncertainties and possible consequences for creditors and investors, is disclosed by USG on Forms 10-K, 10-Q and 8-K filed with the Securities and Exchange Commission.
     USG Corporation is a Fortune 500 company with subsidiaries that are market leaders in their key product groups: gypsum wallboard, joint compound and related gypsum products; cement board; gypsum fiber panels; ceiling panels and grid; and building products distribution. For more information about USG Corporation, visit the USG home page at www.usg.com.
# # #

This press release contains forward-looking statements related to management’s expectations about future conditions. The effects of USG’s Chapter 11 reorganization and the conduct, outcome and costs of the Chapter 11 cases, including the ultimate outcome and costs associated with the corporation’s agreement to resolve its asbestos liabilities, may differ from management’s expectations. Actual business, market or other conditions may also differ from management’s expectations and accordingly affect the corporation’s sales and profitability or other results. Actual results may differ due to various other factors, including economic conditions such as the levels of construction activity, employment levels, interest rates, currency exchange rates and consumer confidence; competitive conditions such as price and product competition; shortages in raw materials; increases in raw material and energy and employee benefit costs; loss of one or more major customers; and the unpredictable effects of acts of terrorism or war upon domestic and international economies and financial markets; and acts of God. USG Corporation assumes no obligation to update any forward-looking information contained in this press release.
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USG CORPORATION
CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in millions except per share data)
(Unaudited)
                                 
    Three Months     Twelve Months  
    ended December 31,     ended December 31,  
    2005     2004     2005     2004  
Net sales
   $ 1,335     $ 1,169     $ 5,139     $ 4,509  
 
                                
Cost of products sold
     1,015       953       4,037       3,672  
 
                        
 
                                
Gross profit
     320       216       1,102       837  
 
                                
Selling and administrative expenses
     88       79       352       317  
 
                                
Provision for asbestos claims
     3,100       —       3,100       —  
 
                                
Chapter 11 reorganization expenses
     2       2       4       12  
 
                        
 
                                
Operating profit (loss)
     (2,870 )     135       (2,354 )     508  
 
                                
Interest expense
     1       1       5       5  
 
                                
Interest income
     (3 )     (2 )     (10 )     (6 )
 
                                
Other (income) expense, net
     (1 )     (3 )     —       —  
 
                        
 
                                
Earnings (loss) before income taxes and cumulative effect of accounting change
     (2,867 )     139       (2,349 )     509  
 
                                
Income taxes (benefit)
     (1,097 )     54       (924 )     197  
 
                        
 
                                
Earnings (loss) before cumulative effect of accounting change
     (1,770 )     85       (1,425 )     312  
 
                        
 
                                
Cumulative effect of accounting change
     (11 )     —       (11 )     —  
 
                        
 
                                
Net earnings (loss)
     (1,781 )     85       (1,436 )     312  
 
                        
 
                                
Basic earnings (loss) per common share:
                                
Before cumulative effect of accounting change
     (39.69 )     1.98       (32.67 )     7.26  
Cumulative effect of accounting change
     (0.25 )     —       (0.26 )     —  
 
                        
Basic earnings (loss) per common share *
     (39.94 )     1.98       (32.92 )     7.26  
 
                        
 
                                
Diluted earnings (loss) per common share:
                                
Before cumulative effect of accounting change
     (39.69 )     1.97       (32.67 )     7.26  
Cumulative effect of accounting change
     (0.25 )     —       (0.26 )     —  
 
                        
Diluted earnings (loss) per common share *
     (39.94 )     1.97       (32.92 )     7.26  
 
                        
 
                                
Other Information:
                                
Depreciation, depletion and amortization
     33       37       125       120  
Capital expenditures
     73       58       198       138  
 
                                
Average common shares
     44,598,138       43,092,836       43,622,219       43,024,534  
Average diluted common shares
     44,598,138       43,236,878       43,622,219       43,024,534  
 
*   The sum of the components may not be the same as the total.

 

 

USG CORPORATION
CORE BUSINESS RESULTS
(dollars in millions)
(Unaudited)
                                 
    Three Months     Twelve Months  
    ended December 31,     ended December 31,  
    2005     2004     2005     2004  
Net Sales:
                                
 
                                
North American Gypsum:
                                
U.S. Gypsum Company
   $ 752     $ 645     $ 2,881     $ 2,474  
CGC Inc. (gypsum)
     85       83       323       297  
Other subsidiaries*
     67       49       224       178  
Eliminations
     (53 )     (49 )     (206 )     (196 )
 
                        
Total
     851       728       3,222       2,753  
 
                        
 
                                
Worldwide Ceilings:
                                
USG Interiors, Inc.
     124       115       489       488  
USG International
     51       50       210       200  
CGC Inc. (ceilings)
     15       11       55       51  
Eliminations
     (12 )     (12 )     (47 )     (51 )
 
                        
Total
     178       164       707       688  
 
                        
 
                                
Building Products Distribution:
                                
L&W Supply Corporation
     542       452       2,048       1,738  
 
                        
 
                                
Eliminations
     (236 )     (175 )     (838 )     (670 )
 
                        
Total USG Corporation
     1,335       1,169       5,139       4,509  
 
                        
 
                                
Operating Profit (Loss):
                                
 
                                
North American Gypsum:
                                
U.S. Gypsum Company
     (2,928 )     97       (2,557 )     348  
CGC Inc. (gypsum)
     15       15       53       49  
Other subsidiaries*
     13       8       38       31  
 
                        
Total
     (2,900 )     120       (2,466 )     428  
 
                        
 
                                
Worldwide Ceilings:
                                
USG Interiors, Inc.
     11       2       43       42  
USG International
     1       3       9       12  
CGC Inc. (ceilings)
     3       2       10       8  
 
                        
Total
     15       7       62       62  
 
                        
 
                                
Building Products Distribution:
                                
L&W Supply Corporation
     43       27       149       103  
 
                        
 
                                
Corporate
     (22 )     (17 )     (90 )     (73 )
Chapter 11 reorganization expenses
     (2 )     (2 )     (4 )     (12 )
Eliminations
     (4 )     —       (5 )     —  
 
                        
Total USG Corporation
     (2,870 )     135       (2,354 )     508  
 
                        
 
*   Includes USG Mexico, S.A. de C.V., a building products business in Mexico, Gypsum Transportation Limited, a shipping company in Bermuda, and USG Canadian Mining Ltd., a mining operation in Nova Scotia.

 

 

USG CORPORATION
CONSOLIDATED BALANCE SHEETS
(dollars in millions)
(Unaudited)
                 
    As of     As of  
    December 31,     December 31,  
    2005     2004  
Assets
                
Current Assets:
                
Cash and cash equivalents
   $ 936     $ 756  
Short-term marketable securities
     234       138  
Restricted cash
     78       43  
Receivables (net of reserves — $14 and $14)
     453       413  
Inventories
     315       338  
Income taxes receivable
     6       24  
Deferred income taxes
     2       25  
Other current assets
     155       53  
 
            
 
                
Total current assets
     2,179       1,790  
 
Long-term marketable securities
     329       312  
Property, plant and equipment (net of accumulated depreciation and depletion — $982 and $878)
     1,946       1,853  
Deferred income taxes
     1,423       152  
Goodwill
     64       43  
Other assets
     201       128  
 
            
 
                
Total Assets
     6,142       4,278  
 
            
 
                
Liabilities and Stockholders’ Equity
                
Current Liabilities:
                
Accounts payable
     281       270  
Accrued expenses
     275       224  
Current portion of long-term debt
     —       1  
Deferred income taxes
     6       —  
Income taxes payable
     38       75  
 
            
 
                
Total current liabilities
     600       570  
 
                
Deferred income taxes
     28       25  
Other liabilities
     476       417  
Liabilities subject to compromise
     5,340       2,242  
 
                
Commitments and contingencies
                
 
                
Stockholders’ Equity:
                
Preferred stock
     —       —  
Common stock
     5       5  
Treasury stock
     (219 )     (256 )
Capital received in excess of par value
     435       417  
Accumulated other comprehensive income
     72       17  
Retained earnings (deficit)
     (595 )     841  
 
            
 
                
Total stockholders’ equity (deficit)
     (302 )     1,024  
 
            
 
                
Total Liabilities and Stockholders’ Equity
     6,142       4,278  
 
            

 

 

USG CORPORATION
Reconciliation of Non-GAAP Financial Measures
(dollars in millions except per share data)
(Unaudited)
         
Three Months ended December 31, 2005:
 
Reported net loss
   $ (1,781 )
Provision for asbestos claims, net of tax
     1,935  
Accounting change for FIN 47, net of tax
     11  
 
      
Net earnings excluding asbestos and accounting change
     165  
 
      
 
        
Earnings (Loss) Per Common Share:
        
Reported net loss
   $ (39.94 )
Provision for asbestos claims, net of tax
     43.39  
Accounting change for FIN 47, net of tax
     0.25  
 
      
Net earnings excluding asbestos and accounting change
     3.70  
 
      
 
        
Average common shares (000)
     44,598  
 
Twelve Months ended December 31, 2005:
 
Reported net loss
   $ (1,436 )
Provision for asbestos claims, net of tax
     1,935  
Accounting change for FIN 47, net of tax
     11  
 
      
Net earnings excluding asbestos and accounting change
     510  
 
      
 
        
Earnings (Loss) Per Common Share:
        
Reported net loss
   $ (32.92 )
Provision for asbestos claims, net of tax
     44.36  
Accounting change for FIN 47, net of tax
     0.26  
 
      
Net earnings excluding asbestos and accounting change
     11.70  
 
      
 
        
Average common shares (000)
     43,622  
References to net earnings excluding the asbestos charge and change in accounting principle related to the adoption of FIN 47 (“Accounting for Conditional Asset Retirements”) are non-GAAP measures. Management believes this information provides investors with a more useful comparison of the Corporation’s ongoing business performance.

 

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