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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):
July 25, 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 July 25, 2007, Fidelity National Financial, Inc. issued an earnings release announcing its financial results for the three-month and six-month periods ended June 30, 2007. 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 Second Quarter 2007 EPS of $0.38.

 


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: July 27, 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 Second Quarter 2007 EPS of $0.38.

 

exv99w1
 

Exhibit 99.1
(FIDELITY PRESS RELEASE)
Fidelity National Financial, Inc. Reports Second Quarter 2007 EPS of $0.38
Jacksonville, Fla. — (July 25, 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 six-month periods ended June 30, 2007.
             
            Pro Forma
    Three Months   Three Months Ended   Three Months Ended
    Ended June 30, 2007   June 30, 2006*   June 30, 2006**
Total revenue
  $1.49 billion   $2.64 billion   $1.66 billion
Pre-tax margin
  8.4%   11.2%   11.8%
Net earnings
  $84.8 million   $132.6 million   $125.1 million
Net earnings per diluted share
  $0.38   $0.76   $0.56
Cash flow from operations
  $144.6 million   $324.8 million   N/A
Return on average equity
  9.6%   12.4%   N/A
             
            Pro Forma
    Six Months Ended   Six Months Ended   Six Months Ended
    June 30, 2007   June 30, 2006*   June 30, 2006**
Total revenue
  $2.86 billion   $5.00 billion   $3.17 billion
Pre-tax margin
  8.8%   10.3%   11.1%
Net earnings
  $168.2 million   $239.0 million   $223.9 million
Net earnings per diluted share
  $0.75   $1.38   $1.01
Cash flow from operations
  $229.7 million   $332.8 million   N/A
Return on average equity
  9.6%   12.5%   N/A
 
*   The three-month and six-month periods ended June 30, 2006, include the results of Fidelity National Information Services, Inc. (“FIS”), which was a majority-owned subsidiary of FNF during those periods in 2006.
 
**   A complete pro forma summary of earnings excluding FIS and the minority interest expense related to Fidelity National Title Group, Inc. (“FNT”) for the three-month and six month periods ended June 30, 2006, is included later in this press release.

 


 

     The following are summary financial and operational results for the current operating segments of FNF for the three-month and six-month periods ended June 30, 2007, and 2006:
     Fidelity National Title Group (“FNT”)
         
    Three Months Ended   Three Months Ended,
    June 30, 2007   June 30, 2006
Total revenue
  $1.36 billion   $1.56 billion
Pre-tax earnings
  $131.1 million   $191.5 million
Pre-tax margin
  9.6%   12.3%
         
    Six Months Ended   Six Months Ended
    June 30, 2007   June 30, 2006
Total revenue
  $2.61 billion   $2.95 billion
Pre-tax earnings
  $245.9 million   $324.0 million
Pre-tax margin
  9.4%   11.0%
                         
Month   Direct Orders Opened     Direct Orders Closed     Closing %  
April 2007
    211,100       136,000       64 %
May 2007
    215,700       141,200       65 %
June 2007
    195,300       131,500       67 %
 
                 
Second Quarter 2007
    622,100       408,700       66 %
 
                 
                         
Month   Direct Orders Opened     Direct Orders Closed     Closing %  
April 2006
    217,700       146,400       67 %
May 2006
    243,000       161,800       67 %
June 2006
    236,500       165,600       70 %
 
                 
Second Quarter 2006
    697,200       473,800       68 %
 
                 

 


 

                 
    Open   Closed   Commercial    
    Commercial   Commercial   Revenue   Commercial
    Orders   Orders   (In thousands)   Fee Per File
2nd Quarter 2007
  14,694   8,726   $86,942   $9,964
2nd Quarter 2006
  14,240   9,064   $68,936   $7,605
- The preceding table only includes commercial activity from FNF’s commercial offices in the national commercial division and does not attempt to capture potential commercial activity in our local offices.
     Specialty Insurance
         
    Three Months Ended   Three Months Ended
    June 30, 2007   June 30, 2006
Total revenue
  $103.8 million   $101.4 million
Pre-tax earnings
  $13.9 million   $15.5 million
Pre-tax margin
  13.4%   15.3%
         
    Six Months Ended   Six Months Ended
    June 30, 2007   June 30, 2006
Total revenue
  $202.8 million   $211.8 million
Pre-tax earnings
  $39.3 million   $47.9 million
Pre-tax margin
  19.4%   22.6%
     “Higher interest rates and the slowdown in the mortgage and real estate markets had a dampening effect on the normal seasonal improvement in the title business during the second quarter,” said Chairman of the Board William P. Foley, II. “However, we continue to run our title business through a strict adherence to operating metrics, allowing us to generate a 9.6% pre-tax margin, despite the difficult operating environment. We expect the second half of 2007 to remain a challenge and we will continue to monitor order counts and employee headcount in our quest to maximize earnings from our title business.”
     “Our specialty insurance business performed well during the quarter, as flood insurance contributed nearly 10% revenue growth and the homeowner’s business posted a 62% loss ratio. Additionally, Sedgwick generated $164 million in revenue, while continuing to produce its

 


 

consistent EBITDA margin. Finally, we continue to move forward on our Ceridian acquisition, in partnership with Thomas H. Lee Partners. Ceridian shareholders will vote on the acquisition at the Ceridian annual shareholders meeting, which has been set for September 12, 2007.”
     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 28 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     Six months ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
    (Unaudited)     (Unaudited)  
 
                               
Direct title premiums
  $ 448,504     $ 525,450     $ 867,101     $ 994,372  
Agency title premiums
    597,862       690,530       1,140,008       1,296,584  
 
                       
Total title premiums
    1,046,366       1,215,980       2,007,109       2,290,956  
Escrow and other title-related fees
    283,308       287,197       528,114       540,724  
 
                       
Total title and escrow
    1,329,674       1,503,177       2,535,223       2,831,680  
 
                               
Transaction processing services
          976,067             1,819,266  
Specialty insurance
    99,731       97,708       194,729       204,451  
Interest and investment income
    45,205       48,152       95,164       99,515  
Realized gains and losses
    3,899       5,625       10,281       17,555  
Other
    16,168       14,040       28,342       26,801  
 
                       
 
                               
Total revenue
    1,494,677       2,644,769       2,863,739       4,999,268  
 
                               
Personnel costs
    452,752       891,841       888,012       1,769,772  
Other operating expenses
    296,221       602,061       530,662       1,095,405  
Agent commissions
    462,876       529,082       883,033       998,789  
Depreciation and amortization
    31,192       137,969       60,546       262,600  
Claim loss expense
    113,083       124,075       224,069       238,567  
Interest expense
    12,435       62,960       24,412       117,605  
 
                       
 
                               
Total expenses
    1,368,559       2,347,988       2,610,734       4,482,738  
 
                               
Earnings before income taxes
    126,118       296,781       253,005       516,530  
Income tax expense
    40,471       110,402       85,516       192,149  
Minority interest
    812       53,758       (745 )     85,389  
 
                       
 
                               
Net earnings
  $ 84,835     $ 132,621     $ 168,234     $ 238,992  
 
                       
 
                               
Net earnings per share — basic
  $ 0.39     $ 0.76     $ 0.77     $ 1.38  
 
                       
Net earnings per share — diluted
  $ 0.38     $ 0.76     $ 0.75     $ 1.38  
 
                       
 
                               
Weighted average shares — basic
    218,707       173,475       218,860       173,475  
 
                       
Weighted average shares — diluted
    222,969       173,647       222,940       173,651  
 
                       
 
                               
Direct operations orders opened
    622,100       847,900       1,274,500       1,679,300  
Direct operations orders closed
    408,700       554,100       799,100       1,080,800  

 


 

FIDELITY NATIONAL FINANCIAL, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
                                 
Three Months Ended                   Specialty     Corporate  
June 30, 2007   Consolidated     FNT     Insurance     and Other  
Gross operating revenue
  $ 1,445,573     $ 1,320,761     $ 99,731       25,081  
 
                               
Interest and investment income
    45,205       42,459       4,071       (1,325 )
Realized gains and losses
    3,899       137       3       3,759  
     
 
                               
Total revenue
    1,494,677       1,363,357       103,805       27,515  
Personnel costs
    452,752       425,707       11,814       15,231  
Other operating expenses
    296,221       233,324       41,565       21,332  
Agent commissions
    462,876       462,852             24  
Depreciation and amortization
    31,192       28,172       1,512       1,508  
Claim loss expense
    113,083       78,478       34,605        
Interest expense
    12,435       3,723       449       8,263  
     
 
                               
Total expenses
    1,368,559       1,232,256       89,945       46,358  
 
                               
Pretax earnings
    126,118       131,101       13,860       (18,843 )
 
                               
Pretax margin
    8.4 %     9.6 %     13.4 %      
 
                               
Open orders
    622,100       622,100              
Closed orders
    408,700       408,700              
                                 
Six Months Ended                   Specialty     Corporate  
June 30, 2007   Consolidated     FNT     Insurance     and Other  
Gross operating revenue
  $ 2,758,294     $ 2,521,677     $ 194,729       41,888  
 
                               
Interest and investment income
    95,164       84,468       8,074       2,622  
Realized gains and losses
    10,281       3,298       (28 )     7,011  
     
 
                               
Total revenue
    2,863,739       2,609,443       202,775       51,521  
 
                               
Personnel costs
    888,012       836,280       23,413       28,319  
Other operating expenses
    530,662       431,732       62,617       36,313  
Agent commissions
    883,033       882,903             130  
Depreciation and amortization
    60,546       55,089       3,070       2,387  
Claim loss expense
    224,069       150,534       73,535        
Interest expense
    24,412       7,032       854       16,526  
     
 
                               
Total expenses
    2,610,734       2,363,570       163,489       83,675  
 
                               
Pretax earnings
    253,005       245,873       39,286       (32,154 )
 
                               
Pretax margin
    8.8 %     9.4 %     19.4 %      
 
                               
Open orders
    1,274,500       1,274,500              
Closed orders
    799,100       799,100              

 


 

FIDELITY NATIONAL FINANCIAL, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
                                                 
Three Months Ended                                   Specialty     Corporate  
June 30, 2006   Consolidated     Eliminations     FNT     FIS     Insurance     and Other  
Gross operating revenue
  $ 2,590,992       ($45,428 )   $ 1,512,775     $ 1,021,947     $ 97,708     $ 3,990  
 
                                               
Interest and investment income
    48,152             39,228       1,430       3,793       3,701  
Realized gains and losses
    5,625             4,558       1,016       (52 )     103  
     
 
                                               
Total revenue
    2,644,769       (45,428 )     1,556,561       1,024,393       101,449       7,794  
 
                                               
Personnel costs
    891,841       (6,697 )     466,221       415,992       11,067       5,258  
Other operating expenses
    602,061       (20,478 )     233,607       342,541       40,000       6,391  
Agent commissions
    529,082       (18,253 )     544,169                   3,166  
Depreciation and amortization
    137,969             27,194       110,374       1,502       (1,101 )
Claim loss expense
    124,075             91,017       120       33,082       (144 )
Interest expense
    62,960             2,872       49,033       325       10,730  
     
 
                                               
Total expenses
    2,347,988       (45,428 )     1,365,080       918,060       85,976       24,300  
 
                                               
Pretax earnings
    296,781             191,481       106,333       15,473       (16,506 )
 
                                               
Pretax margin
    11.2 %           12.3 %     10.4 %     15.3 %      
 
                                               
Open orders
    847,900             697,200       150,700              
Closed orders
    554,100             473,800       80,300              
                                                 
Six Months Ended                                   Specialty     Corporate  
June 30, 2006   Consolidated     Eliminations     FNT     FIS     Insurance     and Other  
Gross operating revenue
  $ 4,882,198       ($103,164 )   $ 2,853,521     $ 1,922,882     $ 204,451     $ 4,508  
 
                                               
Interest and investment income
    99,515             77,845       3,139       7,449       11,082  
Realized gains and losses
    17,555             17,187       2,039       (56 )     (1,615 )
     
 
                                               
Total revenue
    4,999,268       (103,164 )     2,948,553       1,928,060       211,844       13,975  
 
                                               
Personnel costs
    1,769,772       (11,932 )     918,656       829,212       22,382       11,454  
Other operating expenses
    1,095,405       (54,364 )     443,228       628,605       71,027       6,909  
Agent commissions
    998,789       (36,868 )     1,032,537                   3,120  
Depreciation and amortization
    262,600             53,431       207,169       2,972       (972 )
Claim loss expense
    238,567             171,738       185       66,951       (307 )
Interest expense
    117,605             4,954       92,301       581       19,769  
     
 
                                               
Total expenses
    4,482,738       (103,164 )     2,624,544       1,757,472       163,913       39,973  
 
                                               
Pretax earnings
    516,530             324,009       170,588       47,931       (25,998 )
 
                                               
Pretax margin
    10.3 %           11.0 %     8.8 %     22.6 %      
 
                                               
Open orders
    1,679,300             1,381,000       298,300              
Closed orders
    1,080,800             910,100       170,700              

 


 

FIDELITY NATIONAL FINANCIAL, INC.
SUMMARY BALANCE SHEET INFORMATION
(In thousands, except per share amounts)
                 
    June 30,     December 31,  
    2007     2006  
    (Unaudited)          
 
               
Cash and investment portfolio
  $ 4,830,915     $ 4,798,195  
Goodwill
    1,195,133       1,154,298  
Title Plant
    330,934       324,155  
Total assets
    7,365,920       7,259,559  
Notes payable
    505,230       491,167  
Reserve for claim losses
    1,229,104       1,220,636  
Secured trust deposits
    871,161       905,461  
Total stockholders’ equity
    3,554,426       3,474,368  
Book value per share
    16.09       15.75  

 


 

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 forma     Other Pro                
    Historical     FIS pro forma     adjustments     Forma             FNF  
    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
    48,152       (1,430 )     (39 )                   46,683  
Realized gains and losses
    5,625       (1,016 )                         4,609  
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       (4 )     481,880  
Other operating expenses
    602,061       (342,541 )     (234 )     20,695       (4 )     273,281  
 
                            (6,700 )     (5 )        
Agent commissions
    529,082                   18,253       (6 )     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       (7 )     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 )     (8 )     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 (9)
 
                                             
 
                                               
Net income per share-diluted
                                          $ 0.56  
 
                                             
Pro forma weighted average shares-diluted
                                            222,000 (9)
 
                                             

 


 

FIDELITY NATIONAL FINANCIAL, INC.
UNAUDITED PRO FORMA SUMMARY OF EARNINGS
FOR THE SIX MONTHS ENDED JUNE 30, 2006
(In thousands except per share amounts)
                                                 
                    FNF Capital                      
                    pro forma     Other Pro                
    Historical     FIS pro forma     adjustments     Forma             FNF  
    FNF     adjustments(1)     (2)     Adjustments     Notes     Pro Forma  
     
 
                                               
Total title and escrow
  $ 2,831,680       ($37,103 )         $ 36,868       (3)     $ 2,831,445  
Transaction processing
    1,819,266       (1,885,779 )           66,513       (3)        
Specialty insurance
    204,451                                 204,451  
Interest and investments income
    99,515       (3,139 )     (58 )                   96,318  
Realized gains and losses
    17,555       (2,039 )                         15,516  
Other income
    26,801             (4,371 )                   22,430  
     
Total revenue
  $ 4,999,268       ($1,928,060 )     (4,429 )   $ 103,381             $ 3,170,160  
 
                                               
Personnel costs
    1,769,772       (829,212 )     (1,536 )     11,932       (4)       950,956  
Other operating expenses
    1,095,405       (628,605 )     (397 )     54,581       (4)       514,284  
 
                            (6,700 )     (5)          
Agent commissions
    998,789                   36,868       (6)       1,035,657  
Depreciation and amortization
    262,600       (207,169 )     (13 )                   55,418  
Provision for claim losses
    238,567       (185 )                         238,382  
Interest expense
    117,605       (92,301 )     (1,758 )     357       (7)       23,903  
     
Total expenses
    4,482,738       (1,757,472 )     (3,704 )     97,038               2,818,600  
 
                                               
Earnings before income taxes
    516,530       (170,588 )     (725 )     6,343               351,560  
Income tax expense
    192,149       (65,207 )     206       (2,344 )             124,804  
Minority interest
    85,389       6             (82,518 )     (8)       2,877  
     
Net income
  $ 238,992       ($105,387 )     (931 )   $ 91,205             $ 223,879  
     
 
                                               
Net income per share-basic
                                          $ 1.02  
 
                                             
Pro forma weighted average shares-basic
                                            219,000 (9)
 
                                             
 
                                               
Net income per share-diluted
                                          $ 1.01  
 
                                             
Pro forma weighted average shares-diluted
                                            222,000 (9)
 
                                             

 


 

FIDELITY NATIONAL FINANCIAL, INC.
NOTES TO UNAUDITED PRO FORMA SUMMARY OF EARNINGS
Notes to Unaudited Pro Forma Summary of Earnings for the Three-Month and Six-Month Periods Ended June 30, 2006
     This pro forma summary of earnings includes the historical statements of continuing operations of FNF and removes the results of operations of FIS, FNF Capital and FNF minority interest expense relating to FIS and FNT, as though the reorganization transaction that occurred in the fourth quarter of 2006 had occurred on January 1, 2006.
(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 $45.6 million and $103.4 million, respectively, for the three-month and six-month periods ended June 30, 2006.
 
(4)   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 reorganization transaction. These expenses amounted to $27.4 million and $66.5 million, respectively, for the three-month and six-month periods ended June 30, 2006.
 
(5)   This represents transaction costs related to the reorganization, all of which have been excluded from the pro forma summary of earnings. These costs amounted to $6.7 million for the three-month and six-month periods ended June 30, 2006.
 
(6)   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 reorganization transaction. These commissions amounted to $18.3 million and $36.9 million, respectively, for the three-month and six-month periods ended June 30, 2006.
 
(7)   This represents intercompany interest expense that is a third-party expense subsequent to the reorganization transaction. These expenses amounted to $0.2 million and $0.4 million, respectively, for the three-month and six-month periods ended June 30, 2006.
 
(8)   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 $31.9 million and $48.3 million, respectively, for the three-month and six-month periods ended June 30, 2006. Minority interest relating to FNT was $20.4 million and $34.2 million, respectively, for the three-month and six-month periods ended June 30, 2006.
 
(9)   Amounts presented approximate the actual number of basic and diluted weighted average shares outstanding subsequent to the reorganization transaction.
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