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Each of these is discussed below. 

Return on Assets Managed (ROAM) is calculated as follows: 

Adjusted EBITDA (as defined on page 37) less depreciation and amortization = Earnings before interest and taxes (EBIT), 

Divided by: 

Average assets managed “Assets managed” include all assets, excluding employee future benefits, and deferred income taxes, and less accounts payable Average assets managed is calculated using the average net assets managed for each of the preceding 13-month periods 

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In 2011, our return on assets managed (ROAM) was 14.7%, lower than our benchmark by 0.3 percentage points. 

Adjusted EBITDA in 2011 increased by $7.5 million over 2010; however, the Icelandic USA average assets managed for one month are included when income was included for only a few days. Excluding the assets and income of Icelandic USA, ROAM was 15.6%. 

## Return on Equity (ROE) is calculated as follows: 

Net income, excluding after-tax business acquisition, integration costs and other income or expenses 

Divided by: 

Average common equity Average equity is calculated using common equity for each of the preceding 13-month periods 

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Our return on equity (ROE) in 2011 was 17.5%. Income, excluding business acquisition, integration costs and other income or expenses, increased in 2011 and average debt levels were higher, both contributing to a higher ROE in 2011. Increased borrowing for the Icelandic USA Acquisition in December 2011 is expected 1  to increase average leverage and return in equity for 2012. Excluding the Icelandic USA Acquisition, ROE in 2011 was unchanged at 17.5%. 

## Trailing 12-month earnings before interest and taxes as a percentage of net sales is calculated as follows: 

All earnings before interest and taxes, excluding business acquisition, integration costs and other income or expenses 

Divided by: 

Sales, as disclosed on the consolidated statement of income 

Our trailing 12-month earnings before interest and taxes (EBIT) as a percentage of net sales revenue is 6.7%. This ratio has improved slightly over the last year due to the Viking Acquisition, where margins are higher on value-added products and as we continue to improve performance from operations. 

