American Home Shield 2007 Annual Report Download - page 62

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Interest and investment income (25,942) (19,832) (15,469)
Minority interest and other expense, net 8,240 8,218 8,225
Income from Continuing Operations before Income Taxes $ 282,629 $ 294,698 $ 270,844
(2) The 2006 results include restructuring charges for severance, as well as costs associated with Project Accelerate, the
Company's initiative to improve the effectiveness and efficiency of its functional support areas, and accruals for employee
retention and severance to be paid in future periods that are related to the Company's decision to consolidate its corporate
headquarters into its operations support center in Memphis, Tennessee and close its current headquarters in Downers Grove,
Illinois. The restructuring charges totaled $21.6 million pretax.
(3) Capital employed is a non-U.S. GAAP measure that is defined as the segment's total assets less liabilities, exclusive of debt
balances. The Company believes this information is useful to investors in helping them compute return on capital measures
and therefore better understand the performance of the Company's business segments. The calculation of capital employed
for the American Home Shield segment includes approximately $323 million, $283 million and $258 million of cash and
marketable securities at December 31, 2006, 2005 and 2004, respectively. The investment income and realized gains/losses
on these assets are reported below operating income in non-operating income/expense. In order to facilitate the comparison
of return on invested capital for the American Home Shield segment, the Company has also presented capital employed for
this segment excluding cash and marketable securities. The negative capital employed balances primarily result from
deferred revenue and amounts payable to subcontractors. Presented below is a reconciliation of total segment capital
employed to the most comparable U.S. GAAP measure.
(In thousands) 2006 2005 2004
Total Assets $ 3,117,463 $ 3,028,870 $ 3, 140,202
Less:
Current liabilities, excluding current portion
of long-term debt 898,093 936,449 1,004,680
Long-term liabilities 340,090 279,631 238,899
Total Capital Employed $ 1,879,280 $ 1,812,790 $ 1,896,623
36