On July 15, 2022, Owens Corning entered into a legally binding agreement to acquire the remaining 50% interest in Fiberteq. The acquisition is anticipated to close in the third quarter of 2022.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
226 $ 156 Net earnings attributable to Owens Corning $ 343 $ 298 $ 647 $ 508
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
In the second quarter and year-to-date 2022, marketing and administrative expenses increased $13 million and increased $23 million, respectively, compared to the same periods in 2021 driven primarily by higher general corporate expenses as business activities return to a more typical, post-pandemic level.
Restructuring, Acquisition and Divestiture-Related Costs
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
The following table presents the impact and respective location of these income (expense) items on the Consolidated Statements of Earnings (in millions):
Three Months Ended June 30, Six Months Ended June 30,
Gain on sale of Shanghai, China facility Other expense (income), net
Adjusted Earnings Before Interest and Taxes
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
The reconciliation from Net earnings attributable to Owens Corning to EBIT and to Adjusted EBIT is shown in the table below (in millions):
The table below provides a summary of net sales, EBIT and depreciation and amortization expense for the Composites segment (in millions):
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
The table below provides a summary of net sales, EBIT and depreciation and amortization expense for the Insulation segment (in millions):
In our Insulation segment, EBIT in the second quarter of 2022 increased $45 million compared to the same period in 2021. Higher selling prices of $142 million and favorable customer mix more than offset $82 million of input cost inflation, $15 million in higher transportation costs and higher selling, general and administrative expenses.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
The table below provides a summary of net sales, EBIT and depreciation and amortization expense for the Roofing segment (in millions):
In our Roofing segment, net sales in the second quarter of 2022 increased $101 million compared to the same period in 2021. Higher selling prices of $153 million and higher-third party asphalt sales of $18 million were partially offset by lower sales volumes of approximately 6% and unfavorable product mix.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
The table below provides a summary of EBIT and depreciation and amortization expense for the Corporate, Other and Eliminations category (in millions):
In 2022, we estimate general corporate expenses to be in the range of $170 million and $180 million.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
LIQUIDITY, CAPITAL RESOURCES AND OTHER RELATED MATTERS
The Company's primary sources of liquidity are its balance of Cash and cash equivalents of $810 million as of June 30, 2022, its Senior Revolving Credit Facility and its Receivables Securitization Facility (each as defined below).
The Company has an $800 million senior revolving credit facility (the "Senior Revolving Credit Facility") that has been amended from time to time, which matures in July 2026.
The Company has a $280 million receivables securitization facility (the "Receivables Securitization Facility") that has been amended from time to time, which matures in April 2024.
In June 2022, the Senior Revolving Credit Facility was amended to allow the Company to continue to operate in comprehensively sanctioned countries so long as it is not violating any sanctions.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
The following table presents a summary of our cash balance, cash flows, and availability on credit facilities (in millions):
Cash and cash equivalents: Cash and cash equivalents as of June 30, 2022 decreased $78 million compared to June 30, 2021 primarily driven by increased cash outflows from investing and financing activities, offset by higher earnings.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
Please refer to Note 4 of the Consolidated Financial Statements.
Please refer to Notes 4, 11, and 12 of the Consolidated Financial Statements.
Please refer to Note 1 of the Consolidated Financial Statements.
Please refer to Note 13 of the Consolidated Financial Statements.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS
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