View:
Download DOC
Download PDF
Download XLS
e8vk
Table of Contents

United States
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Current Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):
February 5, 2007

Fidelity National Financial, Inc.

(Exact name of Registrant as Specified in its Charter)

001-32630
(Commission File Number)

     
Delaware   16-1725106
(State or Other Jurisdiction of Incorporation or Organization)   (IRS Employer Identification Number)

601 Riverside Avenue
Jacksonville, Florida 32204

(Addresses of Principal Executive Offices)

(904) 854-8100
(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

     
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 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

TABLE OF CONTENTS

Item 2.02. Results of Operations and Financial Condition
Item 9.01. Financial Statements and Exhibits
SIGNATURE
EXHIBIT INDEX
EXHIBIT 99.1

Table of Contents

Item 2.02. Results of Operations and Financial Condition

On February 5, 2007, Fidelity National Financial, Inc. issued an earnings release announcing its financial results for the three-month and twelve-month periods ended December 31, 2006. The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended.

A copy of the earnings release is attached as Exhibit 99.1.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits

     
Exhibit
   Description
99.1
   Press release announcing Fidelity National Financial, Inc. Reports Fourth Quarter 2006 EPS of $0.34.

 

Table of Contents

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

         
  Fidelity National Financial, Inc.
 		  
Date: February 7, 2007  By:   /s/ Anthony J. Park  
    Name: Anthony J. Park
Title: Chief Financial Officer		  
       
 

 

Table of Contents

EXHIBIT INDEX

     
Exhibit
   Description
99.1
   Press release announcing Fidelity National Financial, Inc. Reports Fourth Quarter 2006 EPS of $0.34.

 

exv99w1
 

EXHIBIT 99.1
(Fidelity National Financial Press Release)
Fidelity National Financial, Inc. Reports Fourth Quarter 2006 EPS of $0.34; Pro Forma EPS of $0.42
Jacksonville, Fla. — (February 5, 2007) — Fidelity National Financial, Inc. (NYSE:FNF), a leading provider of title insurance, specialty insurance and claims management services, today reported operating results for the three-month and twelve-month periods ended December 31, 2006. FNF’s reported earnings include the financial results of Fidelity National Information Services, Inc. (“FIS”), the former majority-owned subsidiary of FNF, through October 23, 2006, and also include all transaction costs related to the reorganization completed in the fourth quarter of 2006.
         
    4th Quarter 2006   4th Quarter 2005
Total revenue
   $1.80 billion   $2.42 billion
Earnings per diluted share
   $0.34   $0.64
Net earnings
   $71.2 million   $115.2 million
Cash flow from operations
   $122.6 million   $272.8 million
         
    Twelve Months Ended   Twelve Months Ended
    December 31, 2006   December 31, 2005
Total revenue
   $9.44 billion   $9.65 billion
Earnings per diluted share
   $2.39   $5.43
Net earnings
   $437.8 million   $964.1 million
Cash flow from operations
   $721.1 million   $1.28 billion
     Complete quarterly and annual pro forma financial results for the years 2006 and 2005, which FNF believes are beneficial in analyzing its operations as they are currently organized, are included later in this earnings press release. These pro forma results exclude the financial results of FIS and all transaction costs related to the reorganization completed in the fourth quarter of 2006. The following are summary pro forma results for FNF for the three-month and twelve- month periods ending December 31, 2006 and 2005:

 

 

         
    4th Quarter 2006   4th Quarter 2005
Total revenue
   $1.54 billion   $1.76 billion
Earnings per diluted share
   $0.42   $0.86
Net earnings
   $93.4 million   $190.2 million
         
    Twelve Months Ended   Twelve Months Ended
    December 31, 2006   December 31, 2005
Total revenue
   $6.33 billion   $6.75 billion
Earnings per diluted share
   $1.94   $2.80
Net earnings
   $431.4 million   $621.7 million
     The following are summary financial results for the on-going operating segments of FNF for the three-month and twelve-month periods ending December 31, 2006 and 2005:
     Fidelity National Title Group (“FNT”)
         
    4th Quarter 2006   4th Quarter 2005
Total revenue
   $1.44 billion   $1.58 billion
Pre-tax earnings
   $155.7 million   $204.9 million
Pre-tax margin
   10.8%   13.0%
                 
    Twelve Months Ended   Twelve Months Ended
    December 31, 2006   December 31, 2005
Total revenue
   $5.90 billion   $6.30 billion
Pre-tax earnings
   $650.8 million   $868.3 million
Pre-tax margin
     11.0 %     13.8 %
             
Month   Direct Orders Opened   Direct Orders Closed   Closing %
October 2006
   226,900   147,200   65%
November 2006
   207,100   136,900   66%
December 2006
   182,800   143,600   79%
Fourth Quarter 2006
   616,800   427,700   69%
 
            

 

 

             
Month   Direct Orders Opened   Direct Orders Closed   Closing %
October 2005
   242,800   181,900   75%
November 2005
   221,300   168,400   76%
December 2005
   189,800   167,600   88%
Fourth Quarter 2005
   653,900   517,900   79%
 
            
Specialty Insurance
         
    4th Quarter 2006   4th Quarter 2005
Total revenue
   $94.7 million   $184.2 million
Pre-tax earnings
   $5.0 million   $93.1 million
Pre-tax margin
   5.3%   50.5%
         
    Twelve Months Ended   Twelve Months Ended
    December 31, 2006   December 31, 2005
Total revenue
   $410.2 million   $438.0 million
Pre-tax earnings
   72.0 million   $133.5 million
Pre-tax margin
   17.6%   30.5%
     “2006 was a year in which we continued to actively seek the maximization of the value of FNF for our shareholders,” said Chairman and Chief Executive Officer William P. Foley, II. “We announced and completed the reorganization of the company whereby we eliminated the holding company structure and created a set of transactions that allowed our shareholders to receive two distinct securities, FNF and FIS, in a tax efficient manner. Each entity is now a stand-alone public company that is free to pursue its own unique strategy in the interest of maximizing the value of its assets and continuing to create value for its shareholders.”
     “FNF is now primarily composed of the title insurance business, the specialty insurance operations and the 40% ownership stake in the Sedgwick claims management business. In title, we continue to closely monitor order count, headcount and productivity metrics, which allowed

 

 

us to generate nearly an 11% margin in the fourth quarter, despite an 8.5% decline in revenue compared to the prior year. Specialty insurance revenue and profitability declined from the prior year because the fourth quarter of 2005 included more than $100 million of revenue from the processing of Hurricane Katrina related flood claims. Additionally, fourth quarter profitability in the homeowners business was impacted by a sequential increase in fire and weather related claims, as the provision for homeowners claims was $36 million in the fourth quarter versus $21 million in the third quarter of 2006. Finally, Sedgwick is now more than a $600 million business with attractive EBITDA margins and it is well on its way to achieving the critical mass that will allow us to maximize the value of that asset on behalf of our shareholders.”
     Fidelity National Financial, Inc. (NYSE:FNF), is a leading provider of title insurance, specialty insurance and claims management services. FNF is one of the nation’s largest title insurance companies through its title insurance underwriters — Fidelity National Title, Chicago Title, Ticor Title, Security Union Title and Alamo Title — that issue approximately 29 percent of all title insurance policies in the United States. FNF also provides flood insurance, personal lines insurance and home warranty insurance through its specialty insurance business. FNF also is a leading provider of outsourced claims management services to large corporate and public sector entities through its minority-owned subsidiary, Sedgwick CMS. More information about FNF can be found at www.fnf.com.
     This press release contains forward-looking statements that involve a number of risks and uncertainties. Statements that are not historical facts, including statements about our beliefs and expectations, are forward-looking statements. Forward-looking statements are based on management’s beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future economic performance and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: changes in general economic,

 

 

business and political conditions, including changes in the financial markets; adverse changes in the level of real estate activity, which may be caused by, among other things, high or increasing interest rates, a limited supply of mortgage funding or a weak U. S. economy; our potential inability to find suitable acquisition candidates, acquisitions in lines of business that will not necessarily be limited to our traditional areas of focus, or difficulties in integrating acquisitions; our dependence on operating subsidiaries as a source of cash flow; significant competition that our operating subsidiaries face; compliance with extensive government regulation of our operating subsidiaries; and other risks detailed in the “Statement Regarding Forward-Looking Information,” “Risk Factors” and other sections of the Company’s Form 10-K and other filings with the Securities and Exchange Commission.
SOURCE: Fidelity National Financial, Inc.
CONTACT: Daniel Kennedy Murphy, Senior Vice President, Finance and Investor Relations,
904-854-8120, dkmurphy@fnf.com

 

 

FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY OF EARNINGS
(In thousands, except per share amounts and order information)
                                 
    Three months ended     Twelve months ended  
    December 31,     December 31,  
    2006     2005     2006     2005  
    (Unaudited)             (Unaudited)          
Direct title premiums
   $ 477,649     $ 559,102     $ 1,957,064     $ 2,261,499  
Agency title premiums
     651,019       659,357       2,649,136       2,683,545  
 
                        
Total title premiums
     1,128,668       1,218,459       4,606,200       4,945,044  
Escrow and other title-related fees
     253,001       292,550       1,061,469       1,157,022  
 
                        
Total title and escrow
     1,381,669       1,511,009       5,667,669       6,102,066  
 
                                
Transaction processing services
     261,732       658,204       3,094,370       2,570,372  
Specialty insurance
     90,543       180,663       394,613       428,939  
Interest and investment income
     54,050       43,080       208,309       144,966  
Realized gains and losses
     2,817       18,172       18,562       41,070  
Gain on FIS transaction
     —       —       —       318,209  
Other
     11,200       12,312       52,578       48,957  
 
                        
 
                                
Total revenue
     1,802,011       2,423,440       9,436,101       9,654,579  
 
                                
Personnel costs
     592,384       828,435       3,225,319       3,224,678  
Other operating expenses
     368,964       420,102       2,075,101       1,702,352  
Agent commissions
     497,934       501,920       2,035,423       2,060,467  
Depreciation and amortization
     55,980       108,081       460,750       406,259  
Claim loss expense
     129,124       147,236       486,334       480,556  
Interest expense
     26,436       52,326       209,972       172,327  
 
                        
 
                                
Total expenses
     1,670,822       2,058,100       8,492,899       8,046,639  
 
                                
Earnings before income taxes
     131,189       365,340       943,202       1,607,940  
Income tax expense
     48,802       218,814       350,871       573,391  
Minority interest
     11,189       31,362       154,570       70,443  
 
                        
 
                                
Net earnings
   $ 71,198     $ 115,164     $ 437,761     $ 964,106  
 
                        
 
                                
Net earnings per share — basic
   $ 0.34     $ 0.66     $ 2.40     $ 5.58  
 
                        
Net earnings per share — diluted
   $ 0.34     $ 0.64     $ 2.39     $ 5.43  
 
                        
 
                                
Weighted average shares — basic
     207,420       173,292       182,031       172,839  
 
                        
Weighted average shares — diluted
     210,200       178,608       182,861       177,597  
 
                        
 
                                
Direct operations orders opened
     655,500       771,800       3,146,200       3,615,400  
Direct operations orders closed
     448,800       595,900       2,051,500       2,487,000  

 

 

FIDELITY NATIONAL FINANCIAL, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
                                                 
Three Months Ended                                   Specialty     Corporate  
December 31, 2006   Consolidated     Eliminations     FNT     FIS     Insurance     and Other  
Gross operating revenue
   $ 1,745,144       ($15,107 )   $ 1,399,808     $ 276,840     $ 90,543       ($6,940 )
Interest and investment income
     54,050       —       45,001       6,094       4,105       (1,150 )
Realized gains and losses
     2,817       —       (1,138 )     (4,151 )     67       8,039  
     
 
                                                
Total revenue
     1,802,011       (15,107 )     1,443,671       278,783       94,715       (51 )
 
                                                
Personnel costs
     592,384       (1,472 )     435,085       111,452       11,354       35,965  
Other operating expenses
     368,964       (7,355 )     224,524       103,465       32,317       16,013  
Agent commissions
     497,934       (6,280 )     511,697       —       —       (7,483 )
Depreciation and amortization
     55,980       —       27,174       25,259       1,576       1,971  
Claim loss expense
     129,124       —       85,134       11       43,979       —  
Interest expense
     26,436       —       4,320       12,265       464       9,387  
     
 
                                                
Total expenses
     1,670,822       (15,107 )     1,287,934       252,452       89,690       55,853  
 
                                                
Pretax earnings
     131,189       —       155,737       26,331       5,025       (55,904 )
 
                                                
Pretax margin
     7.3 %     —       10.8 %     9.4 %     5.3 %     —  
 
                                                
Open orders
     655,500       —       616,800       38,700       —       —  
Closed orders
     448,800       —       427,700       21,100       —       —  
                                                 
Three Months Ended                                   Specialty     Corporate  
December 31, 2005   Consolidated     Eliminations     FNT     FIS     Insurance     and Other  
Gross operating revenue
   $ 2,362,188       ($49,577 )   $ 1,526,346     $ 707,683     $ 180,663       ($2,927 )
 
                                                
Interest and investment income
     43,080       —       29,095       1,566       3,521       8,898  
Realized gains and losses
     18,172       —       22,660       (813 )     11       (3,686 )
     
 
                                                
Total revenue
     2,423,440       (49,577 )     1,578,101       708,436       184,195       2,285  
 
                                                
Personnel costs
     828,435       —       481,976       330,115       12,407       3,937  
Other operating expenses
     420,102       (30,032 )     226,977       189,815       31,851       1,491  
Agent commissions
     501,920       (19,545 )     523,652       —       —       (2,187 )
Depreciation and amortization
     108,081       —       28,898       77,752       1,349       82  
Claim loss expense
     147,236       —       100,421       1,644       45,276       (105 )
Interest expense
     52,326       —       11,270       39,421       209       1,426  
     
 
                                                
Total expenses
     2,058,100       (49,577 )     1,373,194       638,747       91,092       4,644  
 
                                                
Pretax earnings
     365,340       —       204,907       69,689       93,103       (2,359 )
 
                                                
Pretax margin
     15.1 %     —       13.0 %     9.8 %     50.5 %     —  
 
                                                
Open orders
     771,800       —       653,900       117,900       —       —  
Closed orders
     595,900       —       517,900       78,000       —       —  

 

 

FIDELITY NATIONAL FINANCIAL, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
                                                 
Twelve Months Ended                                   Specialty     Corporate  
December 31, 2006   Consolidated     Eliminations     FNT     FIS     Insurance     and Other  
Gross operating revenue
   $ 9,209,230       ($185,760 )   $ 5,717,622     $ 3,280,373     $ 394,613     $ 2,382  
 
                                                
Interest and investment income
     208,309       —       167,007       9,594       15,565       16,143  
Realized gains and losses
     18,562       —       14,627       (820 )     17       4,738  
     
 
                                                
Total revenue
     9,436,101       (185,760 )     5,899,256       3,289,147       410,195       23,263  
 
                                                
Personnel costs
     3,225,319       (19,267 )     1,789,805       1,357,397       45,145       52,239  
Other operating expenses
     2,075,101       (101,772 )     891,111       1,115,190       144,702       25,870  
Agent commissions
     2,035,423       (64,721 )     2,099,244       —       —       900  
Depreciation and amortization
     460,750       —       110,486       343,563       6,254       447  
Claim loss expense
     486,334       —       345,578       436       140,625       (305 )
Interest expense
     209,972       —       12,232       154,195       1,443       42,102  
     
 
                                                
Total expenses
     8,492,899       (185,760 )     5,248,456       2,970,781       338,169       121,253  
 
                                                
Pretax earnings
     943,202       —       650,800       318,366       72,026       (97,990 )
 
                                                
Pretax margin
     10.0 %     —       11.0 %     9.7 %     17.6 %     —  
 
                                                
Open orders
     3,146,200       —       2,661,300       484,900       —       —  
Closed orders
     2,051,500       —       1,777,900       273,600       —       —  
                                                 
Twelve Months Ended                                   Specialty     Corporate  
December 31, 2005   Consolidated     Eliminations     FNT     FIS     Insurance     and Other  
Gross operating revenue
   $ 9,150,334       ($185,864 )   $ 6,153,093     $ 2,766,086     $ 428,939       ($11,920 )
 
                                                
Interest and investment income
     144,966       —       111,627       6,392       8,991       17,956  
Realized gains and losses
     359,279       —       36,782       3,767       73       318,657  
     
 
                                                
Total revenue
     9,654,579       (185,864 )     6,301,502       2,776,245       438,003       324,693  
 
                                                
Personnel costs
     3,224,678       —       1,897,904       1,276,557       40,451       9,766  
Other operating expenses
     1,702,352       (105,029 )     920,904       751,282       135,321       (126 )
Agent commissions
     2,060,467       (80,835 )     2,140,912       —       —       390  
Depreciation and amortization
     406,259       —       102,105       299,637       4,279       238  
Claim loss expense
     480,556       —       354,710       1,928       124,054       (136 )
Interest expense
     172,327       —       16,663       126,778       377       28,509  
     
 
                                                
Total expenses
     8,046,639       (185,864 )     5,433,198       2,456,182       304,482       38,641  
 
                                                
Pretax earnings
     1,607,940       —       868,304       320,063       133,521       286,052  
 
                                                
Pretax margin
     16.7 %     —       13.8 %     11.5 %     30.5 %     —  
 
                                                
Open orders
     3,615,400       —       3,052,800       562,600       —       —  
Closed orders
     2,487,000       —       2,169,700       317,300       —       —  

 

 

FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY BALANCE SHEET INFORMATION
(In thousands, except per share amounts)
                 
    December 31,     December 31,  
    2006     2005  
    (Unaudited)          
Cash and investment portfolio
   $ 4,798,195     $ 5,077,583  
Goodwill
     1,154,298       2,873,861  
Title Plant
     324,155       312,801  
Total assets
     7,260,493       11,104,617  
Notes payable
     491,167       3,217,019  
Reserve for claim losses
     1,220,636       1,113,506  
Secured trust deposits
     905,461       882,602  
Total stockholders’ equity
     3,474,369       3,279,775  
Book value per share
     15.75       18.84  

 

 

FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY OF EARNINGS
PRO FORMA (EXCLUDES FIS AND REORGANIZATION TRANSACTION COSTS)**
(In thousands, except per share amounts)
                                 
    Three months ended     Twelve months ended  
    December 31,     December 31,  
    2006     2005     2006     2005  
    (Unaudited)     (Unaudited)  
Total title and escrow
   $ 1,381,668     $ 1,511,009     $ 5,667,426     $ 6,102,066  
Specialty insurance
     90,543       180,663       394,613       428,939  
Interest and investment income
     47,947       41,497       198,617       138,536  
Realized gains and losses
     6,968       18,985       19,382       37,303  
Other income
     10,593       10,303       44,987       41,797  
 
                        
 
                                
Total revenue
     1,537,719       1,762,457       6,325,025       6,748,641  
 
                                
Personnel costs
     454,924       497,407       1,857,711       1,945,549  
Other operating expenses
     261,253       260,140       1,040,764       1,065,097  
Agent commissions
     504,214       521,465       2,100,144       2,141,302  
Depreciation and amortization
     30,721       30,321       117,167       106,602  
Claim loss expense
     129,113       145,592       485,898       478,628  
Interest expense
     13,838       12,221       52,535       43,512  
 
                        
 
                                
Total expenses
     1,394,063       1,467,146       5,654,219       5,780,690  
 
                                
Earnings before income taxes
     143,656       295,311       670,806       967,951  
Income tax expense
     51,035       104,979       238,173       343,766  
Minority interest
     (804 )     164       1,223       2,528  
 
                        
 
                                
Net earnings
   $ 93,425     $ 190,168     $ 431,410     $ 621,657  
 
                        
 
                                
Net earnings per share — basic
   $ 0.43     $ 0.87     $ 1.97     $ 2.84  
 
                        
Net earnings per share — diluted
   $ 0.42     $ 0.86     $ 1.94     $ 2.80  
 
                        
 
                                
Weighted average shares — basic
     219,000       219,000       219,000       219,000  
 
                        
Weighted average shares — diluted
     222,000       222,000       222,000       222,000  
 
                        
 
                                
Direct operations orders opened
     616,800       653,900       2,661,300       3,052,800  
Direct operations orders closed
     427,700       517,900       1,777,900       2,169,700  
Fee per file
   $ 1,608     $ 1,542     $ 1,580     $ 1,487  
** This schedule is a pro forma summary of earnings that shows the financial results for Fidelity National Financial, Inc. as if the transfer of certain assets, the issuance of FNT common stock, the subsequent distribution of FNT common stock and the merger of the prior FNF with and into FIS had occurred on January 1, 2005. The schedules on the following pages provide the annual and quarterly pro forma summary of earnings detail for the years 2006 and 2005.

 

 

FIDELITY NATIONAL FINANCIAL, INC.
UNAUDITED PRO FORMA SUMMARY OF EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2006
(In thousands except per share amounts)
                                                 
                    FNF Capital pro                      
            FIS pro forma     forma adjustments     Other Pro Forma             FNF  
    Historical FNF     adjustments(1)     (2)     Adjustments     Notes     Pro Forma  
Total title and escrow
   $ 5,667,669       ($64,964 )     —     $ 64,721       (3 )   $ 5,667,426  
Transaction processing
     3,094,370       (3,215,409 )     —       121,039       (3 )     —  
Specialty insurance
     394,613       —       —       —               394,613  
Interest and investments income
     208,309       (9,594 )     (98 )     —               198,617  
Realized gains and losses
     18,562       820       —       —               19,382  
Other income
     52,578       —       (7,591 )     —               44,987  
     
Total revenue
   $ 9,436,101       ($3,289,147 )     (7,689 )   $ 185,760             $ 6,325,025  
 
                                                
Personnel costs
     3,225,319       (1,357,397 )     (2,317 )     19,267       (5 )     1,857,711  
 
                             (27,161 )     (6 )        
Other operating expenses
     2,075,101       (1,115,190 )     (744 )     101,772       (5 )     1,040,764  
 
                             (20,175 )     (6 )        
Agent commissions
     2,035,423       —       —       64,721       (7 )     2,100,144  
Depreciation and amortization
     460,750       (343,563 )     (20 )     —               117,167  
Provision for claim losses
     486,334       (436 )     —       —               485,898  
Interest expense
     209,972       (154,195 )     (3,931 )     689       (8 )     52,535  
     
Total expenses
     8,492,899       (2,970,781 )     (7,012 )     139,113               5,654,219  
 
                                                
Earnings before income taxes
     943,202       (318,366 )     (677 )     46,647               670,806  
Income tax expense
     350,871       (117,836 )     (248 )     5,386               238,173  
Minority interest
     154,570       30       (211 )     (153,166 )     (9 )     1,223  
     
Net income
   $ 437,761       ($200,560 )     (218 )   $ 194,427             $ 431,410  
     
 
                                                
Net income per share-basic
                                           $ 1.97  
 
                                              
Pro forma weighted average shares-basic
                                             219,000 (10)
 
                                              
 
                                                
Net income per share-diluted
                                           $ 1.94  
 
                                              
Pro forma weighted average shares-diluted
                                             222,000 (10)
 
                                              

 

 

FIDELITY NATIONAL FINANCIAL, INC.
UNAUDITED PRO FORMA SUMMARY OF EARNINGS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2006
(In thousands except per share amounts)
                                                 
                    FNF Capital pro                      
            FIS pro forma     forma adjustments     Other Pro Forma             FNF  
    Historical FNF     adjustments(1)     (2)     Adjustments     Notes     Pro Forma  
Total title and escrow
   $ 1,381,669       ($6,281 )     —     $ 6,280       (3 )   $ 1,381,668  
Transaction processing
     261,732       (270,559 )     —       8,827       (3 )     —  
Specialty insurance
     90,543       —       —       —               90,543  
Interest and investments income
     54,050       (6,094 )     (9 )     —               47,947  
Realized gains and losses
     2,817       4,151       —       —               6,968  
Other income
     11,200       —       (607 )     —               10,593  
     
Total revenue
   $ 1,802,011       ($278,783 )     (616 )   $ 15,107             $ 1,537,719  
 
                                                
Personnel costs
     592,384       (111,452 )     (319 )     1,472       (5 )     454,924  
 
                             (27,161 )     (6 )        
Other operating expenses
     368,964       (103,465 )     (41 )     7,355       (5 )     261,253  
 
                             (11,560 )     (6 )        
Agent commissions
     497,934       —       —       6,280       (7 )     504,214  
Depreciation and amortization
     55,980       (25,259 )     —       —               30,721  
Provision for claim losses
     129,124       (11 )     —       —               129,113  
Interest expense
     26,436       (12,265 )     (422 )     89       (8 )     13,838  
     
Total expenses
     1,670,822       (252,452 )     (782 )     (23,525 )             1,394,063  
 
                                                
Earnings before income taxes
     131,189       (26,331 )     166       38,632               143,656  
Income tax expense
     48,802       (9,727 )     48       11,912               51,035  
Minority interest
     11,189       (11 )     —       (11,982 )     (9 )     (804 )
     
Net income
   $ 71,198       ($16,593 )     118     $ 38,702             $ 93,425  
     
 
                                                
Net income per share-basic
                                           $ 0.43  
 
                                              
Pro forma weighted average shares-basic
                                             219,000 (10)
 
                                              
 
                                                
Net income per share-diluted
                                           $ 0.42  
 
                                              
Pro forma weighted average shares-diluted
                                             222,000 (10)
 
                                              

 

 

FIDELITY NATIONAL FINANCIAL, INC.
UNAUDITED PRO FORMA SUMMARY OF EARNINGS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006
(In thousands except per share amounts)
                                                 
                    FNF Capital pro                      
            FIS pro forma     forma adjustments     Other Pro Forma             FNF  
    Historical FNF     adjustments(1)     (2)     Adjustments     Notes     Pro Forma  
Total title and escrow
   $ 1,454,320       ($21,580 )     —     $ 21,573       (3 )   $ 1,454,313  
Transaction processing
     1,013,372       (1,059,071 )     —       45,699       (3 )     —  
Specialty insurance
     99,619       —       —       —               99,619  
Interest and investments income
     48,129       (361 )     (31 )     —               47,737  
Realized gains and losses
     4,805       (1,292 )     —       —               3,513  
Other income
     14,577       —       (2,613 )     —               11,964  
     
Total revenue
   $ 2,634,822       ($1,082,304 )     (2,644 )   $ 67,272             $ 1,617,146  
 
                                                
Personnel costs
     863,163       (416,733 )     (462 )     5,863       (5 )     451,831  
Other operating expenses
     610,732       (383,120 )     (306 )     39,836       (5 )     265,227  
 
                             (1,915 )     (6 )        
Agent commissions
     538,700       —       —       21,573       (7 )     560,273  
Depreciation and amortization
     142,170       (111,135 )     (7 )     —               31,028  
Provision for claim losses
     118,643       (240 )     —       —               118,403  
Interest expense
     65,931       (49,629 )     (1,751 )     243       (8 )     14,794  
     
Total expenses
     2,339,339       (960,857 )     (2,526 )     65,600               1,441,556  
 
                                                
Earnings before income taxes
     295,483       (121,447 )     (118 )     1,672               175,590  
Income tax expense
     109,920       (42,902 )     (502 )     (4,182 )             62,334  
Minority interest
     57,992       35       (211 )     (58,666 )     (9 )     (850 )
     
Net income
   $ 127,571       ($78,580 )     595     $ 64,520             $ 114,106  
     
 
                                                
Net income per share-basic
                                           $ 0.52  
 
                                              
Pro forma weighted average shares-basic
                                             219,000 (10)
 
                                              
 
                                                
Net income per share-diluted
                                           $ 0.51  
 
                                              
Pro forma weighted average shares-diluted
                                             222,000 (10)
 
                                              

 

 

FIDELITY NATIONAL FINANCIAL, INC.
UNAUDITED PRO FORMA SUMMARY OF EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 2006
(In thousands except per share amounts)
                                                 
                    FNF Capital pro                      
            FIS pro forma     forma adjustments     Other Pro Forma             FNF  
    Historical FNF     adjustments(1)     (2)     Adjustments     Notes     Pro Forma  
Total title and escrow
   $ 1,503,177       ($18,488 )     —     $ 18,253       (3 )   $ 1,502,942  
Transaction processing
     976,067       (1,003,459 )     —       27,392       (3 )     —  
Specialty insurance
     97,708       —       —       —               97,708  
Interest and investments income
     45,096       (1,430 )     (39 )     —               43,627  
Realized gains and losses
     8,681       (1,016 )     —       —               7,665  
Other income
     14,040       —       (2,108 )     —               11,932  
     
Total revenue
   $ 2,644,769       ($1,024,393 )     (2,147 )   $ 45,645             $ 1,663,874  
 
                                                
Personnel costs
     891,841       (415,992 )     (666 )     6,697       (5 )     481,880  
Other operating expenses
     602,061       (342,541 )     (234 )     20,695       (5 )     273,281  
 
                             (6,700 )     (6 )        
Agent commissions
     529,082       —       —       18,253       (7 )     547,335  
Depreciation and amortization
     137,969       (110,374 )     (6 )     —               27,589  
Provision for claim losses
     124,075       (120 )     —       —               123,955  
Interest expense
     62,960       (49,033 )     (915 )     198       (8 )     13,210  
     
Total expenses
     2,347,988       (918,060 )     (1,821 )     39,143               1,467,250  
 
                                                
Earnings before income taxes
     296,781       (106,333 )     (326 )     6,502               196,624  
Income tax expense
     110,402       (40,621 )     378       (357 )             69,802  
Minority interest
     53,758       317       —       (52,304 )     (9 )     1,771  
     
Net income
   $ 132,621       ($66,029 )     (704 )   $ 59,163             $ 125,051  
     
 
                                                
Net income per share-basic
                                           $ 0.57  
 
                                              
Pro forma weighted average shares-basic
                                             219,000 (10)
 
                                              
 
                                                
Net income per share-diluted
                                           $ 0.56  
 
                                              
Pro forma weighted average shares-diluted
                                             222,000 (10)
 
                                              

 

 

FIDELITY NATIONAL FINANCIAL, INC.
UNAUDITED PRO FORMA SUMMARY OF EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31, 2006
(In thousands except per share amounts)
                                                 
                    FNF Capital pro                      
            FIS pro forma     forma adjustments     Other Pro Forma             FNF  
    Historical FNF     adjustments(1)     (2)     Adjustments     Notes     Pro Forma  
Total title and escrow
   $ 1,328,503       ($18,615 )     —     $ 18,615       (3 )   $ 1,328,503  
Transaction processing
     843,199       (882,320 )     —       39,121       (3 )     —  
Specialty insurance
     106,743       —       —       —               106,743  
Interest and investments income
     51,363       (1,709 )     (19 )     —               49,635  
Realized gains and losses
     11,930       (1,023 )     —       —               10,907  
Other income
     12,761       —       (2,263 )     —               10,498  
     
Total revenue
   $ 2,354,499       ($903,667 )     (2,282 )   $ 57,736             $ 1,506,286  
 
                                                
Personnel costs
     877,931       (413,220 )     (870 )     5,235       (5 )     469,076  
Other operating expenses
     493,344       (286,064 )     (163 )     33,886       (5 )     241,003  
Agent commissions
     469,707       —       —       18,615       (7 )     488,322  
Depreciation and amortization
     124,631       (96,795 )     (7 )     —               27,829  
Provision for claim losses
     114,492       (65 )     —       —               114,427  
Interest expense
     54,645       (43,268 )     (843 )     159       (8 )     10,693  
     
Total expenses
     2,134,750       (839,412 )     (1,883 )     57,895               1,351,350  
 
                                                
Earnings before income taxes
     219,749       (64,255 )     (399 )     (159 )             154,936  
Income tax expense
     81,747       (24,586 )     (172 )     (1,987 )             55,002  
Minority interest
     31,631       (311 )     —       (30,214 )     (9 )     1,106  
     
Net income
   $ 106,371       ($39,358 )     (227 )   $ 32,042             $ 98,828  
     
 
                                                
Net income per share-basic
                                           $ 0.45  
 
                                              
Pro forma weighted average shares-basic
                                             219,000 (10)
 
                                              
 
                                                
Net income per share-diluted
                                           $ 0.45  
 
                                              
Pro forma weighted average shares-diluted
                                             222,000 (10)
 
                                              

 

 

FIDELITY NATIONAL FINANCIAL, INC.
UNAUDITED PRO FORMA SUMMARY OF EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2005
(In thousands except per share amounts)
                                                 
                    FNF Capital pro                      
            FIS pro forma     forma adjustments     Other Pro Forma             FNF  
    Historical FNF     adjustments(1)     (2)     Adjustments     Notes     Pro Forma  
Total title and escrow
   $ 6,102,066       ($80,835 )     —     $ 80,835       (3 )   $ 6,102,066  
Transaction processing
     2,570,372       (2,685,250 )     —       114,878       (3 )     —  
Specialty insurance
     428,939       —       —       —               428,939  
Interest and investments income
     144,966       (6,392 )     (38 )     —               138,536  
Realized gains and losses
     359,279       (3,767 )     —       (318,209 )     (4 )     37,303  
Other income
     48,957       (1 )     (7,159 )     —               41,797  
     
Total revenue
   $ 9,654,579       ($2,776,245 )     (7,197 )     ($122,496 )           $ 6,748,641  
 
                                                
Personnel costs
     3,224,678       (1,276,557 )     (2,572 )     —               1,945,549  
Other operating expenses
     1,702,352       (751,282 )     (851 )     114,878       (5 )     1,065,097  
Agent commissions
     2,060,467       —       —       80,835       (7 )     2,141,302  
Depreciation and amortization
     406,259       (299,637 )     (20 )     —               106,602  
Provision for claim losses
     480,556       (1,928 )     —       —               478,628  
 
                                                
Interest expense
     172,327       (126,778 )     (2,440 )     403       (8 )     43,512  
     
Total expenses
     8,046,639       (2,456,182 )     (5,883 )     196,116               5,780,690  
Earnings before income taxes
     1,607,940       (320,063 )     (1,314 )     (318,612 )             967,951  
Income tax expense
     573,391       (119,063 )     (502 )     (110,060 )             343,766  
Minority interest
     70,443       (4,450 )     —       (63,465 )     (9 )     2,528  
     
Net income
   $ 964,106       ($196,550 )     (812 )   $ (145,087 )           $ 621,657  
     
 
                                                
Net income per share-basic
                                           $ 2.84  
 
                                              
Pro forma weighted average shares-basic
                                             219,000 (10)
 
                                              
 
                                                
Net income per share-diluted
                                           $ 2.80  
 
                                              
Pro forma weighted average shares-diluted
                                             222,000 (10)
 
                                              

 

 

FIDELITY NATIONAL FINANCIAL, INC.
UNAUDITED PRO FORMA SUMMARY OF EARNINGS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2005
(In thousands except per share amounts)
                                                 
                    FNF Capital pro                      
            FIS pro forma     forma adjustments     Other Pro Forma             FNF  
    Historical FNF     adjustments(1)     (2)     Adjustments     Notes     Pro Forma  
Total title and escrow
   $ 1,511,009       ($19,545 )     —     $ 19,545       (3 )   $ 1,511,009  
Transaction processing
     658,204       (688,138 )     —       29,934       (3 )     —  
Specialty insurance
     180,663       —       —       —               180,663  
Interest and investments income
     43,080       (1,566 )     (17 )     —               41,497  
Realized gains and losses
     18,172       813       —       —               18,985  
Other income
     12,312       —       (2,009 )     —               10,303  
     
Total revenue
   $ 2,423,440       ($708,436 )     (2,026 )   $ 49,479             $ 1,762,457  
 
                                                
Personnel costs
     828,435       (330,115 )     (913 )     —               497,407  
Other operating expenses
     420,102       (189,815 )     (81 )     29,934       (5 )     260,140  
Agent commissions
     501,920       —       —       19,545       (7 )     521,465  
Depreciation and amortization
     108,081       (77,752 )     (8 )     —               30,321  
Provision for claim losses
     147,236       (1,644 )     —       —               145,592  
Interest expense
     52,326       (39,421 )     (838 )     154       (8 )     12,221  
     
Total expenses
     2,058,100       (638,747 )     (1,840 )     49,633               1,467,146  
 
                                                
Earnings before income taxes
     365,340       (69,689 )     (186 )     (154 )             295,311  
Income tax expense
     218,814       (25,924 )     (68 )     (87,843 )             104,979  
Minority interest
     31,362       1,721       —       (32,919 )     (9 )     164  
     
Net income
   $ 115,164       ($45,486 )     (118 )   $ 120,608             $ 190,168  
     
 
                                                
Net income per share-basic
                                           $ 0.87  
 
                                              
Pro forma weighted average shares-basic
                                             219,000 (10)
 
                                              
 
                                                
Net income per share-diluted
                                           $ 0.86  
 
                                              
Pro forma weighted average shares-diluted
                                             222,000 (10)
 
                                              

 

 

FIDELITY NATIONAL FINANCIAL, INC.
UNAUDITED PRO FORMA SUMMARY OF EARNINGS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005
(In thousands except per share amounts)
                                                 
                    FNF Capital pro                      
            FIS pro forma     forma adjustments     Other Pro Forma             FNF  
    Historical FNF     adjustments(1)     (2)     Adjustments     Notes     Pro Forma  
Total title and escrow
   $ 1,728,290       ($23,998 )     —     $ 23,239       (3 )   $ 1,727,531  
Transaction processing
     646,447       (674,111 )     —       27,664       (3 )     —  
Specialty insurance
     95,448       —       —       —               95,448  
Interest and investments income
     36,064       (1,733 )     (13 )     —               34,318  
Realized gains and losses
     8,699       (4,145 )     —       —               4,554  
Other income
     12,937       (1 )     (1,462 )     —               11,474  
     
Total revenue
   $ 2,527,885       ($703,988 )     (1,475 )   $ 50,903             $ 1,873,325  
 
                                                
Personnel costs
     841,051       (317,821 )     (116 )     —               523,114  
Other operating expenses
     442,001       (185,185 )     (145 )     27,664       (5 )     284,335  
Agent commissions
     590,876       (526 )     —       23,239       (7 )     613,589  
Depreciation and amortization
     95,619       (70,782 )     (6 )     —               24,831  
Provision for claim losses
     135,354       (72 )     —       —               135,282  
Interest expense
     48,466       (37,548 )     (679 )     95       (8 )     10,334  
     
Total expenses
     2,153,367       (611,934 )     (946 )     50,998               1,591,485  
 
                                                
Earnings before income taxes
     374,518       (92,054 )     (529 )     (95 )             281,840  
Income tax expense
     144,189       (32,245 )     (203 )     (11,688 )             100,053  
Minority interest
     15,926       (1,917 )     —       (13,296 )     (9 )     713  
     
Net income
   $ 214,403       ($57,892 )     (326 )   $ 24,889             $ 181,074  
     
 
                                                
Net income per share-basic
                                           $ 0.83  
 
                                              
Pro forma weighted average shares-basic
                                             219,000 (10)
 
                                              
 
                                                
Net income per share-diluted
                                           $ 0.82  
 
                                              
Pro forma weighted average shares-diluted
                                             222,000 (10)
 
                                              

 

 

FIDELITY NATIONAL FINANCIAL, INC.
UNAUDITED PRO FORMA SUMMARY OF EARNINGS
FOR THE THREE MONTHS ENDED JUNE 30, 2005
(In thousands except per share amounts)
                                                 
                    FNF Capital pro                      
            FIS pro forma     forma adjustments     Other Pro Forma             FNF  
    Historical FNF     adjustments(1)     (2)     Adjustments     Notes     Pro Forma  
Total title and escrow
   $ 1,632,013       ($18,352 )     —     $ 19,111       (3 )   $ 1,632,772  
Transaction processing
     659,156       (690,361 )     —       31,205       (3 )     —  
Specialty insurance
     77,320       —       —       —               77,320  
Interest and investments income
     28,915       (331 )     (5 )     —               28,579  
Realized gains and losses
     21,699       (1,723 )     —       —               19,976  
Other income
     13,413       —       (2,469 )     —               10,944  
     
Total revenue
   $ 2,432,516       ($710,767 )     (2,474 )   $ 50,316             $ 1,769,591  
 
                                                
Personnel costs
     808,115       (316,526 )     (961 )     —               490,628  
Other operating expenses
     447,332       (199,626 )     (402 )     31,205       (5 )     278,509  
Agent commissions
     576,205       526       —       19,111       (7 )     595,842  
Depreciation and amortization
     105,232       (75,362 )     (5 )     —               29,865  
Provision for claim losses
     110,802       (137 )     —       —               110,665  
Interest expense
     47,028       (36,388 )     (507 )     89       (8 )     10,222  
     
Total expenses
     2,094,714       (627,513 )     (1,875 )     50,405               1,515,731  
 
                                                
Earnings before income taxes
     337,802       (83,254 )     (599 )     (89 )             253,860  
Income tax expense
     130,053       (32,069 )     (231 )     (7,633 )             90,120  
Minority interest
     17,707       (2,609 )     —       (13,799 )     (9 )     1,299  
     
Net income
   $ 190,042       ($48,576 )     (368 )   $ 21,343             $ 162,441  
     
 
                                                
Net income per share-basic
                                           $ 0.74  
 
                                              
Pro forma weighted average shares-basic
                                             219,000 (10)
 
                                                
 
                                              
Net income per share-diluted
                                           $ 0.73  
 
                                              
Pro forma weighted average shares-diluted
                                             222,000 (10)
 
                                              

 

 

FIDELITY NATIONAL FINANCIAL, INC.
UNAUDITED PRO FORMA SUMMARY OF EARNINGS
FOR THE THREE MONTHS ENDED MARCH 31, 2005
(In thousands except per share amounts)
                                                 
                    FNF Capital pro                      
            FIS pro forma     forma adjustments     Other Pro Forma             FNF  
    Historical FNF     adjustments(1)     (2)     Adjustments     Notes     Pro Forma  
Total title and escrow
   $ 1,230,754       ($18,940 )     —       18,940       (3 )   $ 1,230,754  
Transaction processing
     606,565       (632,640 )     —       26,075       (3 )     —  
Specialty insurance
     75,508       —       —       —               75,508  
Interest and investments income
     25,524       (2,762 )     (3 )     —               22,759  
Realized gains and losses
     322,092       1,288       —       (318,209 )     (4 )     5,171  
Other income
     10,295       —       (1,219 )     —               9,076  
     
Total revenue
   $ 2,270,738       ($653,054 )     (1,222 )     ($273,194 )           $ 1,343,268  
 
                                                
Personnel costs
     747,077       (312,095 )     (582 )     —               434,400  
Other operating expenses
     392,917       (176,656 )     (223 )     26,075       (5 )     242,113  
Agent commissions
     391,466       —       —       18,940       (7 )     410,406  
Depreciation and amortization
     97,327       (75,741 )     (1 )     —               21,585  
Provision for claim losses
     87,164       (75 )     —       —               87,089  
Interest expense
     24,507       (13,421 )     (416 )     65       (8 )     10,735  
     
Total expenses
     1,740,458       (577,988 )     (1,222 )     45,080               1,206,328  
 
                                                
Earnings before income taxes
     530,280       (75,066 )     —       (318,274 )             136,940  
Income tax expense
     80,335       (28,825 )     —       (2,896 )             48,614  
Minority interest
     5,448       (1,645 )     —       (3,451 )     (9 )     352  
     
Net income
   $ 444,497       ($44,596 )     —     $ (311,927 )           $ 87,974  
     
 
                                                
Net income per share-basic
                                           $ 0.40  
 
                                              
Pro forma weighted average shares-basic
                                             219,000 (10)
 
                                              
 
                                                
Net income per share-diluted
                                           $ 0.40  
 
                                              
Pro forma weighted average shares-diluted
                                             222,000 (10)
 
                                              

 

 

FIDELITY NATIONAL FINANCIAL, INC.
NOTES TO UNAUDITED PRO FORMA SUMMARY OF EARNINGS
    Notes to Unaudited Pro Forma Summary of Earnings for the Years Ended December 31, 2006, and 2005 and for the Three-Month Periods Ended December 31, September 30, June 30, and March 31, 2006, and 2005
 
    These pro forma summary of earnings include the historical statements of continuing operations of FNF and remove the results of operations of FIS and FNF minority interest expense relating to FIS and FNT as though the transaction had occurred on January 1, 2005.
 
(1)   This column represents the historical results of operations of FIS as included in FNF’s consolidated results of operations for the periods presented.
 
(2)   This column represents the historical results of operations of FNF Capital as included in FNF’s consolidated results of operations for the periods presented.
 
(3)   This represents the intercompany revenues relating to various agreements recorded on FIS’ income statement that had already been eliminated from the consolidated results of operations of FNF. These revenues amounted to $185.8 million for the year ended December 31, 2006, $15.1 million, $67.3 million, $45.6 million, and $57.7 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $195.7 million for the year ended December 31, 2005, and $49.5 million, $50.9 million, $50.3 million, and $45.0 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively.
 
(4)   This represents a $318.2 million gain on sale relating to the sale of a minority equity interest in FIS.
 
(5)   This represents the intercompany expenses related to various agreements that were eliminated in the consolidated results of operations of FNF, but are third-party expenses subsequent to the transaction. These expenses amounted to $121.0 million for the year ended December 31, 2006, $8.8 million, $45.7 million, $27.4 million, and $39.1 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $114.9 million for the year ended December 31, 2005, and $29.9 million, $27.7 million, $31.2 million, and $26.1 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively.
 
(6)   These amounts represent transaction costs related to the reorganization, all of which have been excluded from the pro forma results of operations. These costs amounted to $47.3 million for the year ended December 31, 2006, and $38.7 million, $1.9 million and $6.7 million for three-month periods ended December 31, September 30 and June 30, 2006, respectively.
 
(7)   This represents the additional agent commissions paid by FNF to FIS that were previously eliminated in the consolidated results of FNF, but are a third-party expense subsequent to the transaction. These commissions amounted to $64.7 million for the year ended December 31, 2006, $6.3 million, $21.6 million, $18.3 million, and $18.6 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $80.8 million for the year ended December 31, 2005, and $19.5 million, $23.2 million, $19.1 million, and $18.9 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively.
 
(8)   This represents intercompany interest expense that is a third-party expense subsequent to the transaction. These expenses amounted to $0.7 million for the year ended December 31, 2006, $0.1 million, $0.2 million, $0.2 million, and $0.2 million in the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $0.4 million for the year ended December 31, 2005, and $0.1 million, $0.1 million, $0.1 million, and $0.1 million in the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively.
 
(9)   This represents the elimination of the minority interest expense recorded by FNF relating to its earnings in FIS and FNT. Minority interest expense relating to FIS was $96.2 million for the year ended December 31, 2006, $8.3 million, $39.7 million, $31.9 million, and $16.4 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, $44.9 million for the year ended December 31, 2005, and $14.3 million, $13.3 million, $13.8 million, and $3.5 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2005, respectively. Minority interest relating to FNT was $56.9 million for the year ended December 31, 2006, $3.7 million, $19.0 million, $20.4 million, and $13.8 million for the three-month periods ended December 31, September 30, June 30, and March 31, 2006, respectively, and $18.7 million for the year and three-month period ended December 31, 2005. There were no minority interest expenses relating to earnings in FNT during the first three quarters of 2005 because FNT was a wholly-owned subsidiary of FNF during those periods.
 
(10)   Amounts presented approximate the actual number of basic and diluted weighted average shares outstanding subsequent to the transaction. These amounts have been used for all periods in order to enhance comparability.
###