level of marketable debt securities and other interest bearing accounts
in which HLTH invests, as well as with interest expenses arising from
the capital structure of HLTH. Interest income and expense varies over
time due to a variety of financing transactions and due to acquisitions
and divestitures that HLTH has entered into or may enter into in the
future. HLTH has, in the past several years, issued convertible
debentures and preferred stock, repurchased shares in cash tender offers
and through other repurchase transactions, conducted an initial public
offering of equity in its WebMD subsidiary and completed the divestiture
of certain businesses. HLTH excludes interest income and interest
expense from Adjusted EBITDA (i) because these items are not directly
attributable to the performance of HLTH's business operations and,
accordingly, their exclusion assists management and investors in making
period-to-period comparisons of operating performance and (ii) to assist
management and investors in making comparisons to companies with
different capital structures. Investors should note that interest income
and expense will recur in future periods.
-- Income Tax Provision. HLTH had net operating loss (NOL) carryforwards
of approximately $1.3 billion as of the year ended December 31, 2007.
HLTH maintained a full valuation allowance on these NOL carryforwards
until the fourth quarter of 2007, at which time a portion of the
valuation allowance was reversed after consideration of the relevant
factors. The related valuation allowances are either reversed through
the income statement, additional paid-in capital, or reversed to
goodwill, to the extent those tax benefits were a
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