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Other income for the year ended December 31, 2012 was $26.7 million compared to $32.6 million in the prior year. The decline was primarily due to the non-recurring $4.9 million in insurance proceeds received in 2011. 

Amortization of deferred sales commissions and fund contracts was $165.4 million in 2012, a decrease from $166.7 million in 2011. This represents the average amount of deferred sales commissions paid in the last seven years plus a small amount of accelerated amortization as deferred load units are redeemed ahead of their seven-year scheduled term. The level of spending on deferred sales commissions has declined from that of the prior year. 

Interest expense of $24.9 million was recorded for the year ended December 31, 2012 compared with $27.5 million for the year ended December 31, 2011. The decrease in interest expense reflects lower average debt levels during 2012, as discussed under “Liquidity and Capital Resources.” 

Other expenses for the year ended December 31, 2012 were $5.3 million compared to $6.9 million in the prior year. The decline from the prior year is primarily a result of the elimination of capital taxes payable by CI mid-way through 2011. 

As illustrated in Table 7, EBITDA for the year ended December 31, 2012 was $703.6 million ($2.48 per share) compared with $726.2 million ($2.53 per share) for the year ended December 31, 2011. The 3% decline is consistent with the above discussion on pre-tax operating earnings. EBITDA as a percentage of total revenues (EBITDA margin) for 2012 was 48.3%, consistent with that of 2011. 

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