Hamilton Beach 2007 Annual Report Download - page 47

Download and view the complete annual report

Please find page 47 of the 2007 Hamilton Beach annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 50

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50

[43]
RECONCILIATION OF RETURN ON TOTAL CAPITAL EMPLOYED:
2007
2007 average equity (12/31/2006 and each of 2007's quarter ends). . . . . . . . . . . . . . . . .
2007 average debt (12/31/2006 and at each of 2007's quarter ends) . . . . . . . . . . . . . . . .
Total 2007 average total capital employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2007 net income, as reported. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: 2007 interest expense, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on 2007 interest expense at 38%* . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on total capital employed = actual net income before
interest expense, after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on total capital employed percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2006
2006 average equity (12/31/2005 and each of 2006's quarter ends). . . . . . . . . . . . . . . . .
2006 average debt (12/31/2005 and at each of 2006's quarter ends) . . . . . . . . . . . . . . . .
Total 2006 average total capital employed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2006 net income, as reported. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Plus: 2006 interest expense, as reported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: Income taxes on 2006 interest expense at 38%** . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on total capital employed = actual net income before
interest expense, after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Actual return on total capital employed percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Less: After-tax gain on the sale of draglines at NACoal. . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted return on total capital employed = adjusted net income before
interest expense, after tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Adjusted return on total capital employed percentage . . . . . . . . . . . . . . . . . . . . . . . . .
* Tax rate of 38% represents the Company's marginal tax rate as compared with 2007’s effective income tax rate of 20.6%.
** Tax rate of 38% represents the Company's marginal tax rate as compared with 2006's effective income tax rate of 23.1%.
NMHG
$ 497.6
308.6
$ 806.2
$ 39.3
25.4
(9.7)
$ 55.0
6.8%
NMHG
$ 452.0
332.2
$ 784.2
$ 34.6
31.8
(12.1)
$ 54.3
6.9%
HBB
$ 51.8
118.4
$ 170.2
$ 18.4
10.1
(3.8)
$ 24.7
14.5%
HBB
$ 123.2
54.0
$ 177.2
$ 22.2
4.8
(1.8)
$ 25.2
14.2%
NACoal
$ 66.3
110.8
$ 177.1
$ 31.0
7.0
(2.7)
$ 35.3
19.9%
NACoal
$ 65.2
107.6
$ 172.8
$ 39.7
7.4
(2.8)
$ 44.3
25.6%
(13.1)
$ 31.2
18.1%
KC
$ 15.0
21.4
$ 36.4
$ (0.9)
1.8
(0.7)
$ 0.2
0.6%
KC
$ 13.1
9.3
$ 22.4
$ 3.7
0.7
(0.3)
$ 4.1
18.3%
Return on total capital employed is provided solely as a supplemental disclosure with respect to income generation because management believes
it provides useful information with respect to earnings in a form that is comparable to the Company's cost of capital employed, which includes
both equity and debt securities.
(U.S. dollars in millions)