Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - NACCO INDUSTRIES INC | l39740e8vk.htm |
| EX-99.1 - EX-99.1 - NACCO INDUSTRIES INC | l39740exv99w1.htm |
| EX-99.2 - EX-99.2 - NACCO INDUSTRIES INC | l39740exv99w2.htm |
Exhibit 99.3
Reconciliation of North American Coal’s
Return on Capital Employed
| (U.S. dollars | ||||
| in millions) | ||||
2009 |
||||
2009 Average Equity (12/31/2008 and each of 2009’s quarter ends) |
$ | 102.0 | ||
2009 Average Debt (12/31/2008 and at each of 2009’s quarter ends) |
85.5 | |||
Total 2009 average capital employed |
$ | 187.5 | ||
2009 Net income, as reported |
$ | 53.2 | ||
Plus: 2009 Interest expense, as reported |
4.1 | |||
Less: Income taxes on 2009 interest expense at 38%* |
(1.6 | ) | ||
Actual return on capital employed = actual net income before
interest expense, after tax |
$ | 55.7 | ||
Actual return on capital employed percentage |
29.7 | % | ||
Less: Discontinued operations, net of tax |
(22.6 | ) | ||
Adjusted return on capital employed = income from continuing operations
before interest expense, after tax |
$ | 33.1 | ||
Adjusted return on capital employed percentage |
17.7 | % | ||
2008 |
||||
2008 average equity (12/31/2007 and each of 2008’s quarter ends) |
$ | 84.1 | ||
2008 average debt (12/31/2007 and at each of 2008’s quarter ends) |
107.1 | |||
Total 2008 average capital employed |
$ | 191.2 | ||
2008 Net income, as reported |
$ | 22.1 | ||
Plus: 2008 Interest expense, as reported |
5.5 | |||
Less: Income taxes on 2008 interest expense at 38%** |
(2.1 | ) | ||
Actual return on capital employed = actual net income before
interest expense, after tax |
$ | 25.5 | ||
Actual return on capital employed percentage |
13.3 | % | ||
Less: Discontinued operations, net of tax |
(2.3 | ) | ||
Adjusted return on capital employed = income from continuing operations
before interest expense, after tax |
$ | 23.2 | ||
Adjusted return on capital employed percentage |
12.1 | % | ||
Return on 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.
| * | Tax rate of 38% represents the Company’s target marginal tax rate compared with 2009’s effective income tax rate of 22.3%. | |
| ** | Tax rate of 38% represents the Company’s target marginal tax rate compared with 2008’s effective income tax rate of 13.9%. |