Adjusted Operating Income

Adjusted Operating Income. Means, for any period, ANI's operating income for such period determined in accordance with United States generally accepted accounting principles ("GAAP"), consistently applied, adjusted for purposes of this Agreement as follows (i) Gross Revenues for the purpose of the determination of operating income shall not include any amounts received by ANI from NVC pursuant to the Development and License Agreement; (ii) selling, 1 general and administrative... expenses for any such period shall not, for the purpose of such determination, exceed (A) $1,998,000 in 2003, and $3,603,000 in 2004; and (B) for any period after December 31, 2004, 15% of ANI's Gross Revenues (including for this purpose any amounts received by ANI from NVC pursuant to the Development and License Agreement for such period) for such period; and (iii) research and development expenses for any such period shall not, for the purpose of such determination, exceed (A) $4,516,000 in 2003 and $5,934,000 in 2004; and (B) for any period after December 31, 2004, 20% of ANI's Gross Revenues (including for this purpose any amounts received by ANI from NVC pursuant to the Development and License Agreement for such period) for such period. View More

Adjusted Operating Income. A non-U.S. GAAP measure calculated by adjusting income before income taxes to eliminate (i) interest expense and other income, (ii) certain gains related to the Fidelity & Guaranty Life Holdings, Inc. acquisition, (iii) the impact of net investment gains, excluding gains and losses on derivatives and including net other-than-temporary impairment ('OTTI') losses recognized in operations, (iv) the effect of changes in the rates used to discount the FIA embedded derivative liability, and (v) the... effects of acquisition-related reinsurance transactions, net of the corresponding value of business acquired ('VOBA') and deferred acquisition costs ('DAC') impact related to these adjustments View More

Adjusted Operating Income. For any given calendar year shall mean the Company's operating income, plus depreciation expense, plus effective interest on operating leases as if capitalized at 5%, less cash payments for income taxes, determined in accordance with accounting principles generally accepted in the United States and shall exclude the impact of non-cash impairment charges, early lease termination charges and special, non-recurring items reflected in the Company's financial statements for such calendar year.