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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):
October 25, 2006

Fidelity National Title Group, 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 October 25, 2006, Fidelity National Title Group, Inc. issued an earnings release announcing its financial results for the Third Quarter of 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 Title Group, Inc. Reports Third Quarter 2006 EPS of $0.60.

 


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: October 30, 2006  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 Title Group, Inc. Reports Third Quarter 2006 EPS of $0.60.

 

exv99w1
 

EXHIBIT 99.1
     
(FIDELITY LOGO)  
PRESS RELEASE
Fidelity National Title Group, Inc. Reports Third Quarter 2006 EPS of $0.60
Jacksonville, Fla. — (October 25, 2006) — Fidelity National Title Group, Inc. (NYSE: FNT), a leading provider of title insurance, specialty insurance and claims management services, today reported operating results for the three-month and nine-month periods ended September 30, 2006.
         
    3rd Quarter 2006   3rd Quarter 2005
Total revenue
  $1.507 billion   $1.774 billion
         
Pre-tax margin   10.7%*   15.4%
         
Net earnings   $103.4 million   $169.7 million
         
Net earnings per share — diluted   $0.60   $0.98
         
Cash flow from operations   $112.9 million   $206.9 million
         
Return on average equity   15.9%   25.0%
 
*   Includes an $8.4 million pre-tax impairment charge taken on an individual equity position in the investment portfolio. Excluding that impairment charge, the pre-tax margin was 11.1%.
         
    Nine Months Ended September 30, 2006   Nine Months Ended September 30, 2005
Total revenue   $4.456 billion   $4.723 billion
         
Pre-tax margin   10.5%   14.0%
         
Net earnings   $299.0 million   $412.6 million
         
Net earnings per share — diluted   $1.72   $2.38
         
Cash flow from operations   $414.8 million   $603.8 million
         
Return on average equity   15.6%   21.7%

 


 

      “The third quarter was one of transition for our title insurance business,” said Chairman and Chief Executive Officer William P. Foley, II. “While open order counts remained fairly consistent, the mix of business clearly shifted from a majority of purchase transactions toward more refinance transactions, which generate about half of the revenue of a purchase transaction. We were focused on reducing headcount and eliminated approximately 650 positions during the quarter, which helped in reducing personnel costs by $75 million versus the prior year quarter. Given the changing dynamics in the mortgage and real estate marketplaces, the 11% pre-tax margin we generated was a solid performance for the quarter.”
      The following table depicts monthly direct orders opened and closed in the title and escrow business for the third quarter of both 2006 and 2005:
             
Month   Direct Orders Opened   Direct Orders Closed   Closing %
             
July 2006   208,000   142,400   69%
             
August 2006   242,800   158,700   65%
             
September 2006   212,700   139,100   65%
             
             
Third Quarter 2006   663,500   440,200   66%
             
             
Month   Direct Orders Opened   Direct Orders Closed   Closing %
             
July 2005   261,200   192,000   74%
             
August 2005   295,800   218,900   74%
             
September 2005   264,700   192,000   73%
             
             
Third Quarter 2005   821,700   602,900   73%
             
      The following table depicts monthly commercial direct orders opened and closed in the national commercial divisions for the third quarter of both 2006 and 2005:

 


 

                                 
    Open   Closed   Commercial    
    Commercial   Commercial   Revenue   Commercial
    Orders   Orders   (In thousands)   Fee Per File
3rd Quarter 2006
    11,938       7,686     $ 66,316     $ 8,628  
 
                               
3rd Quarter 2005
    15,054       9,016     $ 73,201     $ 8,119  
      On October 24, 2006, Fidelity National Financial (NYSE:FNF) transferred its Specialty Insurance business, Sedgwick and certain other assets to FNT for the issuance of 45,265,956 shares of FNT common stock to FNF. FNF shareholders then received all 188,441,997 shares of FNT common stock held by FNF upon the closing of the transaction. The final exchange ratio was 1.047732 shares of FNT common stock for each share of FNF common stock, as there were 179,857,073 shares of FNF common stock outstanding at the time of the closing of the transaction. FNT is now a stand alone public company with all of its approximately 218.7 million shares held by the public. Upon the closing of the merger of FNF with and into Fidelity National Information Services, Inc. (NYSE:FIS), FNT will legally change its name to Fidelity National Financial, Inc. and its common stock will trade on the New York Stock Exchange under the trading symbol ‘FNF’ beginning on November 10, 2006. Included in this press release is a pro forma summary of earnings, along with supporting schedules, that shows the financial results for FNT as if the transfer of certain assets from FNF, related issuance of FNT common stock to FNF and subsequent distribution of FNT stock to FNF shareholders had occurred on January 1, 2005.
      Fidelity National Title Group, Inc. (NYSE: FNT) is a leading provider of title insurance, specialty insurance and claims management services. FNT 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. FNT also provides flood insurance, personal lines insurance and home warranty insurance through it specialty insurance business. FNT 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 Fidelity National Title Group can be found at www.fntg.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; compliance with extensive regulations; regulatory investigations of the title insurance industry; our business concentration in the State of California, the source of over 20% of our title insurance premiums; our dependence on distributions from our title insurance underwriters as our main source of cash flow; competition from other title insurance companies; 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 Title Group, Inc.
CONTACT: Daniel Kennedy Murphy, Senior Vice President, Finance and Investor Relations, 904-854-8120, dkmurphy@fnf.com

 


 

FIDELITY NATIONAL TITLE GROUP, INC.
SUMMARY OF EARNINGS
(In thousands, except per share amounts and order information)
                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2006     2005     2006     2005  
    (Unaudited)     (Unaudited)  
 
                               
Direct title premiums
  $ 461,340     $ 626,178     $ 1,413,641     $ 1,643,574  
Agency title premiums
    721,801       779,117       2,058,935       2,083,317  
 
                       
Total title premiums
    1,183,141       1,405,295       3,472,576       3,726,891  
Escrow and other title-related fees
    269,188       324,910       810,845       868,375  
 
                       
Total title and escrow
    1,452,329       1,730,205       4,283,421       4,595,266  
 
                               
Interest and investment income
    41,261       28,994       115,680       71,149  
Realized gains and losses
    1,478       3,583       22,091       25,505  
Other
    11,964       11,461       34,393       31,481  
 
                       
 
                               
Total revenue
    1,507,032       1,774,243       4,455,585       4,723,401  
 
                               
Personnel costs
    436,064       511,325       1,354,720       1,415,928  
Other operating expenses
    223,359       246,109       666,587       693,927  
Agent commissions
    555,010       612,139       1,587,547       1,617,260  
Depreciation and amortization
    29,881       23,818       83,312       73,207  
Claim loss expense
    88,706       103,612       260,444       254,289  
Interest expense
    12,762       4,669       36,462       5,393  
 
                       
 
                               
Total expenses
    1,345,782       1,501,672       3,989,072       4,060,004  
 
                               
Earnings before income taxes
    161,250       272,571       466,513       663,397  
Income tax expense
    57,241       102,137       165,610       248,774  
Minority interest
    610       700       1,889       1,992  
 
                       
 
                               
Net earnings
  $ 103,399     $ 169,734     $ 299,014     $ 412,631  
 
                       
 
                               
Net earnings per share — basic
  $ 0.60     $ 0.98     $ 1.72     $ 2.38  
 
                       
Net earnings per share — diluted
  $ 0.60     $ 0.98     $ 1.72     $ 2.38  
 
                       
 
                               
Weighted average shares — basic
    173,475       173,520       173,475       173,520  
 
                       
Weighted average shares — diluted
    173,643       173,520       173,648       173,520  
 
                       
 
                               
Direct operations orders opened
    663,500       821,700       2,044,500       2,398,900  
Direct operations orders closed
    440,200       602,900       1,350,300       1,651,800  
Fee Per File
  $ 1,582     $ 1,508     $ 1,571     $ 1,469  
 
(1)   For the 2005 period, net earnings per share is a pro forma presentation based on the distribution of 173,520 shares on October 17, 2005

 


 

FIDELITY NATIONAL TITLE GROUP, INC.
SUMMARY BALANCE SHEET INFORMATION
(In thousands, except per share amounts)
                 
    September 30,   December 31,
    2006   2005
    (Unaudited)        
 
               
Cash and investment portfolio
  $ 4,022,946     $ 3,762,895  
Goodwill
    1,101,760       1,051,526  
Title plants
    320,549       308,675  
Total assets
    6,173,179       5,900,533  
Notes payable
    572,958       603,262  
Reserve for claim losses
    1,146,669       1,063,857  
Secured trust deposits
    875,317       882,602  
Total stockholders’ equity
    2,635,969       2,480,037  
Book value per share
    15.12       14.23  

 


 

FIDELITY NATIONAL TITLE GROUP, INC.
SUMMARY OF EARNINGS
PRO FORMA FOR DISTRIBUTION OF FNT STOCK**
(In thousands, except per share amounts)
                                 
    Three months ended     Nine months ended  
    September 30,     September 30,  
    2006     2005     2006     2005  
    (Unaudited)     (Unaudited)  
 
                               
Total title and escrow
  $ 1,454,313     $ 1,727,531     $ 4,285,758     $ 4,591,057  
Specialty insurance
    99,619       95,448       304,070       248,276  
Interest and investment income
    47,768       34,331       136,383       85,677  
Realized gains and losses
    3,513       4,554       26,790       29,701  
Other income
    14,577       12,936       41,378       36,644  
 
                       
 
                               
Total revenue
    1,619,790       1,874,800       4,794,379       4,991,355  
 
                               
Personnel costs
    452,295       523,230       1,404,785       1,449,801  
Other operating expenses
    272,709       284,480       788,829       805,727  
Agent commissions
    555,010       613,589       1,595,930       1,619,837  
Depreciation and amortization
    31,035       24,837       86,466       76,293  
Claim loss expense
    118,403       135,282       356,785       333,036  
Interest expense
    16,302       10,918       41,606       32,644  
 
                       
 
                               
Total expenses
    1,445,754       1,592,336       4,274,401       4,317,338  
 
                               
Earnings before income taxes
    174,036       282,464       519,978       674,017  
Income tax expense
    67,018       111,944       193,960       261,438  
Minority interest
    (639 )     713       2,238       2,364  
 
                       
 
                               
Net earnings
  $ 107,657     $ 169,807     $ 323,780     $ 410,215  
 
                       
 
                               
Net earnings per share — basic
  $ 0.49     $ 0.98     $ 1.48     $ 2.37  
 
                       
Net earnings per share — diluted
  $ 0.48     $ 0.98     $ 1.46     $ 2.37  
 
                       
 
                               
Weighted average shares — basic
    218,741       172,951       218,741       172,951  
 
                       
Weighted average shares — diluted
    222,391       172,951       222,130       172,951  
 
                       
 
                               
Book value per share
  $ 15.43                          
 
**   This schedule is a pro forma summary of earnings that shows the financial results for Fidelity National Title Group, Inc. as if the transfer of certain assets from FNF, related issuance of FNT common stock to FNF and subsequent distribution of FNT stock to FNF shareholders had occurred on January 1, 2005. The following four schedules provide the pro forma detail for each period included in this pro forma summary of earnings.

 


 

Fidelity National Title Group, Inc.
Unaudited Pro Forma Combined Statement of Continuing Operations
for the Three Months Ended September 30, 2006
(In thousands Except Per Share Data)
                                     
            FIS pro forma     Other Pro Forma         FNT  
    Historical FNF     adjustments(1)     Adjustments     Notes   Pro Forma  
     
 
                                   
Total title and escrow
  $ 1,454,320       ($21,580 )   $ 21,573     (2)   $ 1,454,313  
Transaction processing
    1,013,372       (1,059,071 )     45,699     (2)      
Specialty insurance
    99,619                       99,619  
Interest and investments income
    48,129       (361 )               47,768  
Realized gains and losses
    4,805       (1,292 )               3,513  
Other income
    14,577                       14,577  
     
Total revenue
  $ 2,634,822       ($1,082,304 )   $ 67,272         $ 1,619,790  
 
                                   
Personnel costs
    863,163       (416,733 )     5,865     (4)     452,295  
Other operating expenses
    610,732       (383,120 )     45,097     (4)     272,709  
Agent commissions
    538,700             16,310     (5)     555,010  
Depreciation and amortization
    142,170       (111,135 )               31,035  
Provision for claim losses
    118,643       (240 )               118,403  
Interest expense
    65,931       (49,629 )               16,302  
     
Total expenses
    2,339,339       (960,857 )     67,272           1,445,754  
Earnings before income taxes and minority interests
    295,483       (121,447 )               174,036  
Income tax expense
    109,920       (42,902 )               67,018  
     
Earnings before minority interests
    185,563       (78,545 )               107,018  
 
                                   
Minority interest expense
    57,992       35       (58,666 )   (6)     (639 )
     
Net income
  $ 127,571       ($78,580 )   $ 58,666         $ 107,657  
     
 
                                   
Net income per share-basic
  $ 0.72                         $ 0.49  
 
                               
Pro forma Weighted average shares-basic
    176,048 (7)                         218,741 (8)
 
                               
 
                                   
Net income per share-diluted
  $ 0.71                         $ 0.48  
 
                               
Pro forma Weighted average shares-diluted
    180,784 (7)                         222,391 (8)
 
                               

 


 

Fidelity National Title Group, Inc.
Unaudited Pro Forma Combined Statement of Continuing Operations
for the Nine Months Ended September 30, 2006
(In thousands Except Per Share Data)
                                     
            FIS pro forma     Other Pro Forma         FNT  
    Historical FNF     adjustments(1)     Adjustments     Notes   Pro Forma  
     
 
                                   
Total title and escrow
  $ 4,286,000       ($58,683 )   $ 58,441     (2)   $ 4,285,758  
Transaction processing
    2,832,638       (2,944,850 )     112,212     (2)      
Specialty insurance
    304,070                       304,070  
Interest and investments income
    139,883       (3,500 )               136,383  
Realized gains and losses
    30,121       (3,331 )               26,790  
Other income
    41,378                       41,378  
     
Total revenue
  $ 7,634,090       ($3,010,364 )   $ 170,653         $ 4,794,379  
 
                                   
Personnel costs
    2,632,935       (1,245,945 )     17,795     (4)     1,404,785  
Other operating expenses
    1,706,137       (1,011,725 )     94,417     (4)     788,829  
Agent commissions
    1,537,489             58,441     (5)     1,595,930  
Depreciation and amortization
    404,770       (318,304 )               86,466  
Provision for claim losses
    357,210       (425 )               356,785  
Interest expense
    183,536       (141,930 )               41,606  
     
Total expenses
    6,822,077       (2,718,329 )     170,653           4,274,401  
Earnings before income taxes and minority interests
    812,013       (292,035 )               519,978  
Income tax expense
    302,069       (108,109 )               193,960  
     
Earnings before minority interests
    509,944       (183,926 )                 326,018  
Minority interest expense
    143,381       41       (141,184 )   (6)     2,238  
     
Net income
  $ 366,563       ($183,967 )   $ 141,184         $ 323,780  
     
 
                                   
Net income per share-basic
  $ 2.09                         $ 1.48  
 
                               
Pro forma Weighted average shares-basic
    175,119 (7)                         218,741 (8)
 
                               
 
                                   
Net income per share-diluted
  $ 2.04                         $ 1.46  
 
                               
Pro forma Weighted average shares-diluted
    180,124 (7)                         222,130 (8)
 
                               

 


 

Fidelity National Title Group, Inc.
Unaudited Pro Forma Combined Statement of Continuing Operations
for the Three Months Ended September 30, 2005
(In thousands Except Per Share Data)
                                     
                    Other Pro            
    Historical     FIS pro forma     Forma         FNT  
    FNF     adjustments(1)     Adjustments     Notes   Pro Forma  
     
 
                                   
Total title and escrow
  $ 1,728,290       ($23,998 )   $ 23,239     (2)   $ 1,727,531  
Transaction processing
    646,447       (674,111 )     27,664     (2)      
Specialty insurance
    95,448                       95,448  
Interest and investments income
    36,064       (1,733 )               34,331  
Realized gains and losses
    8,699       (4,145 )               4,554  
Other income
    12,937       (1 )               12,936  
     
Total revenue
  $ 2,527,885       ($703,988 )   $ 50,903         $ 1,874,800  
 
                                   
Personnel costs
    841,051       (317,821 )               523,230  
Other operating expenses
    442,001       (185,185 )     27,664     (4)     284,480  
Agent commissions
    590,876       (526 )     23,239     (5)     613,589  
Depreciation and amortization
    95,619       (70,782 )               24,837  
Provision for claim losses
    135,354       (72 )               135,282  
Interest expense
    48,466       (37,548 )               10,918  
     
Total expenses
    2,153,367       (611,934 )     50,903           1,592,336  
Earnings before income taxes and minority interests
    374,518       (92,054 )               282,464  
Income tax expense
    144,189       (32,245 )               111,944  
     
Earnings before minority interests
    230,329       (59,809 )                 170,520  
Minority interest expense
    15,926       (1,917 )     (13,296 )   (6)     713  
     
Net income
  $ 214,403       ($57,892 )   $ 13,296         $ 169,807  
     
 
                                   
Net income per share-basic
  $ 1.24                         $ 0.98  
 
                               
Pro forma Weighted average shares-basic
    172,515 (7)                         172,951 (8)
 
                               
 
                                   
Net income per share-diluted
  $ 1.21                         $ 0.98  
 
                               
Pro forma Weighted average shares-diluted
    177,540 (7)                         172,951 (8)
 
                               

 


 

Fidelity National Title Group, Inc.
Unaudited Pro Forma Combined Statement of Continuing Operations
for the Nine Months Ended September 30, 2005
(In thousands Except Per Share Data)
                                     
            FIS pro forma     Other Pro Forma         FNT  
    Historical FNF     adjustments(1)     Adjustments     Notes   Pro Forma  
     
 
                                   
Total title and escrow
  $ 4,591,057       ($61,290 )   $ 61,290     (2)   $ 4,591,057  
Transaction processing
    1,912,168       (1,997,112 )     84,944     (2)      
Specialty insurance
    248,276                       248,276  
Interest and investments income
    90,503       (4,826 )               85,677  
Realized gains and losses
    352,490       (4,580 )     (318,209 )   (3)     29,701  
Other income
    36,645       (1 )               36,644  
     
Total revenue
  $ 7,231,139       ($2,067,809 )     ($171,975 )       $ 4,991,355  
 
                                   
Personnel costs
    2,396,243       (946,442 )               1,449,801  
Other operating expenses
    1,282,250       (561,467 )     84,944     (4)     805,727  
Agent commissions
    1,558,547             61,290     (5)     1,619,837  
Depreciation and amortization
    298,178       (221,885 )               76,293  
Provision for claim losses
    333,320       (284 )               333,036  
Interest expense
    120,001       (87,357 )               32,644  
     
Total expenses
    5,988,539       (1,817,435 )     146,234           4,317,338  
Earnings before income taxes and minority interests
    1,242,600       (250,374 )     (318,209 )         674,017  
Income tax expense
    354,577       (93,139 )               261,438  
     
Earnings before minority interests
    888,023       (157,235 )     (318,209 )         412,579  
Minority interest expense
    39,081       (6,171 )     (30,546 )   (6)     2,364  
     
Net income
  $ 848,942       ($151,064 )     ($287,663 )       $ 410,215  
     
 
                                   
Net income per share-basic
  $ 4.92                         $ 2.37  
 
                               
Pro forma Weighted average shares-basic
    172,686 (7)                         172,951 (8)
 
                               
 
                                   
Net income per share-diluted
  $ 4.79                         $ 2.37  
 
                               
Pro forma Weighted average shares-diluted
    177,254 (7)                         172,951 (8)
 
                               

 


 

Fidelity National Title Group, Inc.
Notes to Unaudited Pro Forma Combined Statements of Continuing Operations
    Notes to Unaudited Pro Forma Combined Statements of Continuing Operations for the Three Month and Nine Month Periods Ended September 30, 2006 and 2005
      These combined statements of continuing operations 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 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 $67.3 million and $50.9 million for the three months ended September 30, 2006 and 2005, respectively, and $170.7 million and $146.2 million for the nine months ended September 30, 2006 and 2005, respectively.
(3)   This represents a $318.2 million gain on sale relating to the sale of a minority equity interest in FIS.
(4)   This represents the intercompany expenses related to various agreements that were eliminated in the consolidated results of operations of FNF, but will be third-party expenses subsequent to the transaction. These expenses amounted to $51.0 million and $27.7 million for the three months ended September 30, 2006 and 2005, respectively, and $112.2 million and $84.9 million for the nine months ended September 30, 2006 and 2005, respectively.
(5)   This represents the additional agent commissions paid by FNF to FIS that were previously eliminated in the consolidated results of FNF, but will be a third-party expense subsequent to the transaction. These commissions amounted to $16.3 million and $23.2 million for the three months ended September 30, 2006 and 2005, respectively, and $58.4 million and $61.3 million for the nine months ended September 30, 2006 and 2005, respectively.
(6)   This represents the elimination of the minority interest expense recorded by FNF relating to its earnings in FIS and FNT. In the 2006 periods, minority interest expenses relating to FIS and FNT amounted to $39.7 million and $19.0 million, respectively, in the three months ended September 30, 2006 and $88.0 million and $53.2 million, respectively, in the nine months ended September 30, 2006. In the 2005 periods, minority interest expenses relating to earnings in FIS were $13.3 million and $30.5 million in the three and nine month periods ended September 30, 2005, respectively, and there were no minority interest expenses relating to earnings in FNT because FNT was a wholly-owned subsidiary of FNF during those periods.
(7)   Amounts in the Historical FNF column represent FNT historical weighted average shares for the three month and nine month periods ended September 30, 2006 and 2005. Amounts in the FNT Pro Forma column have been calculated as follows:
                 
    Three months ended   Nine Months ended
    September 30, 2006   September 30, 2006
Historical weighted average shares — basic
    173,475       173,475  
Additional shares issued
    45,266       45,266  
 
               
Pro forma weighted average shares — basic
    218,741       218,741  
 
               
 
               
Historical weighted average shares — diluted
    173,643       173,648  
Additional shares issued
    45,266       45,266  
Additional dilution from options assumed
    2,792       2,591  
Additional dilution from restricted stock
    690       625  
 
               
 
    222,391       222,130  
 
               
(8)   Pro forma weighted average shares for the three month and nine month periods ended September 30, 2005 have been calculated using the number of outstanding shares of FNF common stock as of a date prior to FNF’s distribution of FNT stock on October 18, 2005.